Acquisitions (Tables)

12 Months Ended

Jan. 30, 2016

Summary of Consideration Transferred, Assets Acquired and Liabilities Assumed

The following table summarizes the consideration transferred in conjunction with the Acquisition as of May 29, 2014:



(in millions, except per share amounts)	Amount
Cash consideration paid to Zale Corporation shareholders ($21 per share)	$	910.2
Cash consideration paid for settlement of Zale Corporation stock options, restricted share awards and long term incentive plan awards	69.6
Cash paid to extinguish Zale Corporation outstanding debt as of May 29, 2014	478.2
Total consideration transferred	$	1,458.0

Under the acquisition method of accounting, the identifiable assets acquired and liabilities assumed are recorded at acquisition date fair values. During the fourth quarter of Fiscal 2015, the Company finalized the valuation of net assets acquired. The following table summarizes the fair values identified for the assets acquired and liabilities assumed in the Acquisition as of May 29, 2014:



(in millions)	Fair values
Cash and cash equivalents	$	28.8
Inventories	856.7
Other current assets	22.4
Property, plant and equipment	103.6
Intangible assets:
Trade names	417.0
Favorable leases	50.2
Deferred tax assets	132.8
Other assets	25.4
Current liabilities⁽¹⁾	(206.3		)
Deferred revenue	(93.3		)
Unfavorable leases	(50.5		)
Unfavorable contracts	(65.6		)
Deferred tax liabilities	(234.0		)
Other liabilities	(28.6		)
Fair value of net assets acquired	958.6
Goodwill	499.4
Total consideration transferred	$	1,458.0

⁽¹⁾ Includes loans and overdrafts, accounts payable, income taxes payable, accrued expenses and other current liabilities.

Pro Forma Information

The following unaudited consolidated pro forma information summarizes the results of operations of the Company as if the Acquisition and related issuance of $1,400.0 million of long-term debt (see Note 19) had occurred as of February 2, 2013. The unaudited consolidated pro forma financial information was prepared in accordance with the acquisition method of accounting under existing standards and is not necessarily indicative of the results of operations that would have occurred if the Acquisition had been completed on the date indicated, nor is it indicative of the future operating results of the Company.



(in millions, except per share amounts)	Fiscal 2015		Fiscal 2014
Pro forma sales	$	6,325.1	$	6,039.9
Pro forma net income	$	462.1	$	361.9
Pro forma earnings per share – basic	$	5.78	$	4.51
Pro forma earnings per share – diluted	$	5.76	$	4.48