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Accounts receivable, net
 3 Months Ended
Apr. 30, 2016
Receivables [Abstract]  
Accounts receivable, net
Accounts receivable, net
Signet’s accounts receivable primarily consist of US customer in-house financing receivables. The accounts receivable portfolio consists of a population that is of similar characteristics and is evaluated collectively for impairment.
(in millions)
April 30, 2016
 
January 30, 2016
 
May 2, 2015
Accounts receivable by portfolio segment, net:
 
 
 
 
 
Sterling Jewelers customer in-house finance receivables
$
1,654.3

 
$
1,725.9

 
$
1,489.4

Zale customer in-house finance receivables
21.6

 
13.6

 
—

Other accounts receivable
13.4

 
16.9

 
10.5

Total accounts receivable, net
$
1,689.3

 
$
1,756.4

 
$
1,499.9


Signet grants credit to customers based on a variety of credit quality indicators, including consumer financial information and prior payment experience. On an ongoing basis, management monitors the credit exposure based on past due status and collection experience, as it has found a meaningful correlation between the past due status of customers and the risk of loss.
During the third quarter of Fiscal 2016, Signet implemented a program to provide in-house credit to customers in the Zale division’s US locations (“second look”). The resulting accounts receivable balance and allowance for doubtful accounts was immaterial as of April 30, 2016 and January 30, 2016. The credit function for the Zale division was entirely outsourced during the first quarter of Fiscal 2016 and, as such, no accounts receivable existed as of May 2, 2015.
Other accounts receivable is comprised primarily of gross accounts receivable relating to the insurance loss replacement business in the UK Jewelry division of $9.8 million (January 30, 2016 and May 2, 2015: $14.1 million and $9.4 million, respectively), with a corresponding valuation allowance of $0.5 million (January 30, 2016 and May 2, 2015: $0.5 million and $0.5 million, respectively).
The allowance for credit losses on Sterling Jewelers customer in-house finance receivables is shown below:
 
13 weeks ended
(in millions)
April 30, 2016
 
May 2, 2015
Beginning balance:
$
(130.0
)
 
$
(113.1
)
Charge-offs, net
46.8

 
37.9

Recoveries
10.1

 
10.4

Provision
(43.7
)
 
(38.5
)
Ending balance
$
(116.8
)
 
$
(103.3
)
Ending receivable balance evaluated for impairment
1,771.1

 
1,592.7

Sterling Jewelers customer in-house finance receivables, net
$
1,654.3

 
$
1,489.4


Net bad debt expense is defined as the provision expense less recoveries.
The credit quality indicator and age analysis of Sterling Jewelers customer in-house finance receivables are shown below:
   
April 30, 2016
 
January 30, 2016
 
May 2, 2015
(in millions)
Gross
 
Valuation
allowance
 
Gross
 
Valuation
allowance
 
Gross
 
Valuation
allowance
Performing:
 
 
 
 
 
 
 
 
 
 
 
Current, aged 0 – 30 days
$
1,427.5

 
$
(43.4
)
 
$
1,473.0

 
$
(45.4
)
 
$
1,290.9

 
$
(39.3
)
Past due, aged 31 – 60 days
240.9

 
(7.9
)
 
259.6

 
(8.3
)
 
211.6

 
(6.8
)
Past due, aged 61 – 90 days
39.2

 
(2.0
)
 
49.2

 
(2.2
)
 
34.8

 
(1.8
)
Non Performing:
 
 
 
 
 
 
 
 
 
 
 
Past due, aged more than 90 days
63.5

 
(63.5
)
 
74.1

 
(74.1
)
 
55.4

 
(55.4
)
 
$
1,771.1

 
$
(116.8
)
 
$
1,855.9

 
$
(130.0
)
 
$
1,592.7

 
$
(103.3
)
 
April 30, 2016
 
January 30, 2016
 
May 2, 2015
(as a % of the ending receivable balance)
Gross
 
Valuation
allowance
 
Gross
 
Valuation
allowance
 
Gross
 
Valuation
allowance
Performing
 
 
 
 
 
 
 
 
 
 
 
Current, aged 0 – 30 days
80.6
%
 
3.0
%
 
79.4
%
 
3.1
%
 
81.0
%
 
3.0
%
Past due, aged 31 – 60 days
13.6
%
 
3.3
%
 
14.0
%
 
3.2
%
 
13.3
%
 
3.2
%
Past due, aged 61 – 90 days
2.2
%
 
5.1
%
 
2.6
%
 
4.5
%
 
2.2
%
 
5.2
%
Non Performing
 
 
 
 
 
 
 
 
 
 
 
Past due, aged more than 90 days
3.6
%
 
100.0
%
 
4.0
%
 
100.0
%
 
3.5
%
 
100.0
%
 
100.0
%
 
6.6
%
 
100.0
%
 
7.0
%
 
100.0
%
 
6.5
%

Securitized credit card receivables
The Sterling Jewelers division securitizes its credit card receivables through its Sterling Jewelers Receivables Master Note Trust established on May 15, 2014. See Note 16 for additional information regarding this asset-backed securitization facility.