Segment Information

12 Months Ended

Jan. 28, 2017

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.

(in millions)	Fiscal 2017			Fiscal 2016			Fiscal 2015
Sales:
Sterling Jewelers	$	3,930.4		$	3,988.7		$	3,765.0
Zale Jewelry(1)	1,549.7			1,568.2			1,068.7
Piercing Pagoda	263.1			243.2			146.9
UK Jewelry	647.1			737.6			743.6
Other	18.1			12.5			12.1
Total sales	$	6,408.4		$	6,550.2		$	5,736.3
Operating income (loss):
Sterling Jewelers	$	715.8		$	718.6		$	624.3
Zale Jewelry(2)	62.2			44.3			(1.9		)
Piercing Pagoda(3)	11.2			7.8			(6.3		)
UK Jewelry	45.6			61.5			52.2
Other(4)	(71.6		)	(128.5		)	(91.7		)
Total operating income	$	763.2		$	703.7		$	576.6
Depreciation and amortization:
Sterling Jewelers	$	112.7		$	106.2		$	95.7
Zale Jewelry	49.1			44.8			29.4
Piercing Pagoda	4.6			3.3			1.6
UK Jewelry	21.6			20.1			22.1
Other	0.8			0.9			0.9
Total depreciation and amortization	$	188.8		$	175.3		$	149.7
Capital additions:
Sterling Jewelers	$	154.5		$	141.6		$	157.6
Zale Jewelry	85.0			47.7			35.1
Piercing Pagoda	12.7			10.2			6.9
UK Jewelry	25.7			26.4			20.2
Other	0.1			0.6			0.4
Total capital additions	$	278.0		$	226.5		$	220.2

⁽¹⁾    Includes sales of $234.6 million, $248.7 million and $205.5 million generated by Canadian operations in Fiscal 2017, Fiscal 2016 and Fiscal 2015, respectively.

⁽²⁾  Includes net operating loss of $16.4 million, $23.1 million and $35.1 million related to the effects of purchase accounting associated with the acquisition of Zale Corporation for Fiscal 2017, Fiscal 2016 and Fiscal 2015, respectively. See Note 3 for additional information.

⁽³⁾  Includes net operating loss of $0.4 million, $3.3 million and $10.8 million related to the effects of purchase accounting associated with the acquisition of Zale Corporation for Fiscal 2017, Fiscal 2016 and Fiscal 2015, respectively. See Note 3 for additional information.

⁽⁴⁾  For Fiscal 2017, Other includes $28.4 million of integration costs for consulting expenses associated with information technology (“IT”) implementations, severance related to organizational changes and and expenses associated with the settlement of miscellaneous legal matters pending as of the date of the Zale acquisition. For Fiscal 2016, Other includes $78.9 million of transaction and integration costs primarily attributable to the impact of the appraisal rights legal settlement discussed in Note 25 and expenses associated with legal, tax, accounting, IT implementations and consulting services, as well as severance costs. For Fiscal 2015, Other includes $59.8 million of transaction and integration expenses associated with legal, tax, accounting, IT implementations and consulting services, as well as severance costs related to Zale and other management changes.

(in millions)	January 28, 2017		January 30, 2016
Total assets:
Sterling Jewelers	$	4,015.4	$	3,788.0
Zale Jewelry	1,940.7		1,955.1
Piercing Pagoda	141.6		141.8
UK Jewelry	372.6		427.8
Other	127.5		152.2
Total assets	$	6,597.8	$	6,464.9
Total long-lived assets:
Sterling Jewelers	$	567.3	$	519.7
Zale Jewelry	1,050.1		1,013.7
Piercing Pagoda	61.4		53.3
UK Jewelry	70.7		75.3
Other	8.0		8.9
Total long-lived assets	$	1,757.5	$	1,670.9
Total liabilities:
Sterling Jewelers	$	2,061.4	$	1,982.2
Zale Jewelry	524.3		530.3
Piercing Pagoda	28.2		28.5
UK Jewelry	110.6		132.0
Other	771.2		731.2
Total liabilities	$	3,495.7	$	3,404.2

(in millions)	Fiscal 2017		Fiscal 2016		Fiscal 2015
Sales by product:
Diamonds and diamond jewelry	$	3,853.7	$	3,918.1	$	3,450.6
Gold, silver jewelry, other products and services	2,090.0		2,116.4		1,784.5
Watches	464.7		515.7		501.2
Total sales	$	6,408.4	$	6,550.2	$	5,736.3