Segment information

6 Months Ended

Jul. 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 principally as Kay Jewelers (“Kay”), Kay Jewelers Outlet, Jared The Galleria Of Jewelry (“Jared”) and Jared Vault. The division also operates a variety of mall-based regional brands.

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 the US store brand Zales (Zales Jewelers and Zales Outlet), which operates in all 50 US states, and the Canadian store brand Peoples Jewellers, which operates in nine provinces. The division also operates regional brands Gordon’s Jewelers and Mappins. 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 shopping malls and off-mall locations (i.e. high street) principally as H.Samuel and Ernest Jones.

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.

	13 weeks ended						26 weeks ended
(in millions)	July 30, 2016			August 1, 2015			July 30, 2016			August 1, 2015
Sales:
Sterling Jewelers	$	839.4		$	858.5		$	1,819.8		$	1,802.7
Zale Jewelry	331.0			336.4			712.4			709.3
Piercing Pagoda	57.0			52.9			126.0			117.1
UK Jewelry	145.2			159.1			289.2			305.6
Other	0.8			3.7			4.9			6.5
Total sales	$	1,373.4		$	1,410.6		$	2,952.3		$	2,941.2
Operating income:
Sterling Jewelers	$	140.9		$	157.8		$	339.2		$	336.0
Zale Jewelry(1)	0.5			(2.0		)	18.8			8.4
Piercing Pagoda(2)	(0.2		)	(0.1		)	7.6			5.0
UK Jewelry	1.7			3.2			3.0			3.7
Other(3)	(23.0		)	(58.1		)	(36.7		)	(76.1		)
Total operating income	$	119.9		$	100.8		$	331.9		$	277.0

⁽¹⁾  Includes net operating loss of $4.3 million and $9.5 million related to the effects of purchase accounting associated with the acquisition of Zale Corporation for the 13 and 26 weeks ended July 30, 2016 and $4.4 million and $13.5 million for the 13 and 26 weeks ended August 1, 2015, respectively.

⁽²⁾  Includes net operating loss of $0.1 million and $0.2 million related to the effects of purchase accounting associated with the acquisition of Zale Corporation for the 13 and 26 weeks ended July 30, 2016 and $0.7 million and $3.0 million for the 13 and 26 weeks ended August 1, 2015, respectively.

⁽³⁾  Includes $5.3 million and $10.6 million for the 13 and 26 weeks ended July 30, 2016 of integration costs for consulting expenses associated with IT implementations and severance related to organizational changes. Includes $43.6 million and $50.0 million for the 13 and 26 weeks ended August 1, 2015 of transaction and integration expenses primarily attributable to the legal settlement over appraisal rights and consulting expenses.

(in millions)	July 30, 2016		January 30, 2016		August 1, 2015
Total assets:
Sterling Jewelers	$	3,699.5	$	3,788.0	$	3,445.7
Zale Jewelry	1,931.1		1,955.1		1,864.0
Piercing Pagoda	138.4		141.8		116.9
UK Jewelry	392.3		427.8		432.2
Other	136.7		152.2		212.5
Total assets	$	6,298.0	$	6,464.9	$	6,071.3