Segment Information

12 Months Ended

Jan. 30, 2016

Segment Reporting [Abstract]

Segment information

Segment information

Financial information for each of Signet’s reportable segments is presented in the tables below. Signet’s chief operating decision maker utilizes sales and operating income, after the elimination of any inter-segment transactions, to determine resource allocations and performance assessment measures. Signet’s sales are derived from the retailing of jewelry, watches, other products and services as generated through the management of its five reportable segments: the Sterling Jewelers division, the Zale division, which consists of the Zale Jewelry and Piercing Pagoda segments, the UK Jewelry division and Other.

The Sterling Jewelers division operates in all 50 US states. Its stores operate nationally in malls and off-mall locations as Kay Jewelers and Kay Jewelers Outlet and regionally under a number of well-established mall-based brands. Destination superstores operate nationwide as Jared The Galleria Of Jewelry (“Jared”) and Jared Vault.

The Zale division operates jewelry stores (Zale Jewelry) and kiosks (Piercing Pagoda), located primarily in shopping malls throughout the US, Canada and Puerto Rico. Zale Jewelry includes national brands Zales Jewelers, Zales Outlet and Peoples Jewellers, along with regional brands Gordon’s Jewelers and Mappins Jewellers. Piercing Pagoda operates through mall-based kiosks.

The UK Jewelry division operates stores in the UK, Republic of Ireland and Channel Islands. Its stores operate in major regional shopping malls and prime “high street” locations (main shopping thoroughfares with high pedestrian traffic) as “H.Samuel,” “Ernest Jones” and “Leslie Davis.”

The Other reportable segment consists of all non-reportable segments, including subsidiaries involved in the purchasing and conversion of rough diamonds to polished stones, that are below the quantifiable threshold for separate disclosure as a reportable segment and unallocated corporate administrative functions.

(in millions)	Fiscal 2016			Fiscal 2015			Fiscal 2014
Sales:
Sterling Jewelers	$	3,988.7		$	3,765.0		$	3,517.6
Zale Jewelry(1)	1,568.2			1,068.7			n/a
Piercing Pagoda	243.2			146.9			n/a
UK Jewelry	737.6			743.6			685.6
Other	12.5			12.1			6.0
Total sales	$	6,550.2		$	5,736.3		$	4,209.2
Operating income (loss):
Sterling Jewelers	$	718.6		$	624.3		$	553.2
Zale Jewelry(2)	44.3			(1.9		)	n/a
Piercing Pagoda(3)	7.8			(6.3		)	n/a
UK Jewelry	61.5			52.2			42.4
Other(4)	(128.5		)	(91.7		)	(25.1		)
Total operating income	$	703.7		$	576.6		$	570.5
Depreciation and amortization:
Sterling Jewelers	$	106.2		$	95.7		$	88.8
Zale Jewelry	44.8			29.4			n/a
Piercing Pagoda	3.3			1.6			n/a
UK Jewelry	20.1			22.1			21.4
Other	0.9			0.9			—
Total depreciation and amortization	$	175.3		$	149.7		$	110.2
Capital additions:
Sterling Jewelers	$	141.6		$	157.6		$	134.2
Zale Jewelry	47.7			35.1			n/a
Piercing Pagoda	10.2			6.9			n/a
UK Jewelry	26.4			20.2			18.4
Other	0.6			0.4			0.1
Total capital additions	$	226.5		$	220.2		$	152.7

⁽¹⁾    Includes sales of $248.7 million and $205.5 million generated by Canadian operations in Fiscal 2016 and Fiscal 2015, respectively.

⁽²⁾  Includes net operating loss of $23.1 million and $35.1 million related to the effects of purchase accounting associated with the acquisition of Zale Corporation for the years ended January 30, 2016 and January 31, 2015, respectively. See Note 3 for additional information.

⁽³⁾  Includes net operating loss of $3.3 million and $10.8 million related to the effects of purchase accounting associated with the acquisition of Zale Corporation for the years ended January 30, 2016 and January 31, 2015, respectively. See Note 3 for additional information.

⁽⁴⁾ Includes $78.9 million and $59.8 million of transaction and integration expenses, including the impact of the appraisal rights legal settlement discussed in Note 24, for the years ended January 30, 2016 and January 31, 2015, respectively. Transaction and integration costs include expenses associated with advisor fees for legal, tax, accounting, information technology implementation and consulting services, as well as severance costs related to Zale and other management changes.

n/aNot applicable as Zale division was acquired on May 29, 2014. See Note 3 for additional information.

(in millions)	January 30, 2016		January 31, 2015
Total assets:
Sterling Jewelers	$	3,788.0	$	3,505.0
Zale Jewelry	1,955.1		1,932.6
Piercing Pagoda	141.8		132.8
UK Jewelry	427.8		413.5
Other	161.7		230.4
Total assets	$	6,474.4	$	6,214.3
Total long-lived assets:
Sterling Jewelers	$	519.7	$	488.3
Zale Jewelry	1,013.7		1,014.4
Piercing Pagoda	53.3		46.5
UK Jewelry	75.3		73.8
Other	8.9		9.2
Total long-lived assets	$	1,670.9	$	1,632.2
Total liabilities:
Sterling Jewelers	$	1,982.2	$	1,880.6
Zale Jewelry	530.3		543.6
Piercing Pagoda	28.5		47.1
UK Jewelry	132.0		128.1
Other	740.7		804.5
Total liabilities	$	3,413.7	$	3,403.9

(in millions)	Fiscal 2016		Fiscal 2015		Fiscal 2014
Sales by product:
Diamonds and diamond jewelry	$	3,918.1	$	3,450.6	$	2,552.1
Gold, silver jewelry, other products and services	2,116.4		1,784.5		1,236.9
Watches	515.7		501.2		420.2
Total sales	$	6,550.2	$	5,736.3	$	4,209.2