Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jan. 30, 2021 | Mar. 12, 2021 | Aug. 01, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 30, 2021 | ||
Current Fiscal Year End Date | --01-30 | ||
Document Transition Report | false | ||
Entity File Number | 1-32349 | ||
Entity Registrant Name | SIGNET JEWELERS LIMITED | ||
Entity Incorporation, State or Country Code | D0 | ||
Entity Address, Address Line One | Clarendon House | ||
Entity Address, Address Line Two | 2 Church Street | ||
Entity Address, City or Town | Hamilton | ||
Entity Address, Postal Zip Code | HM11 | ||
Entity Address, Country | BM | ||
City Area Code | 441 | ||
Local Phone Number | 296 5872 | ||
Title of 12(b) Security | Common Shares of $0.18 each | ||
Trading Symbol | SIG | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 554,810,368 | ||
Entity Common Stock, Shares outstanding | 52,344,941 | ||
Documents Incorporated by Reference | The Registrant will incorporate by reference information required in response to Part III, Items 10-14, from its definitive proxy statement for its annual meeting of shareholders which will be filed with the Securities and Exchange Commission within 120 days after January 30, 2021. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000832988 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Income Statement [Abstract] | |||
Sales | $ 5,226.9 | $ 6,137.1 | $ 6,247.1 |
Cost of sales | (3,493) | (3,904.2) | (4,024.1) |
Restructuring charges - cost of sales | (1.4) | (9.2) | (62.2) |
Gross margin | 1,732.5 | 2,223.7 | 2,160.8 |
Selling, general and administrative expenses | (1,587.4) | (1,918.2) | (1,985.1) |
Credit transaction, net | 0 | 0 | (167.4) |
Restructuring charges | (46.2) | (69.9) | (63.7) |
Asset impairments | (159) | (47.7) | (735.4) |
Other operating income (loss) | 2.4 | (29.6) | 26.2 |
Operating income (loss) | (57.7) | 158.3 | (764.6) |
Interest expense, net | (32) | (35.6) | (39.7) |
Other non-operating income, net | 0 | 7 | 1.7 |
Income (loss) before income taxes | (89.7) | 129.7 | (802.6) |
Income taxes | 74.5 | (24.2) | 145.2 |
Net income (loss) | (15.2) | 105.5 | (657.4) |
Dividends on redeemable convertible preferred shares | (33.5) | (32.9) | (32.9) |
Net income (loss) attributable to common shareholders | $ (48.7) | $ 72.6 | $ (690.3) |
Earnings (loss) per common share: | |||
Basic (usd per share) | $ (0.94) | $ 1.40 | $ (12.62) |
Diluted (usd per share) | $ (0.94) | $ 1.40 | $ (12.62) |
Weighted average common shares outstanding: | |||
Basic (in shares) | 52 | 51.7 | 54.7 |
Diluted (in shares) | 52 | 51.8 | 54.7 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | ||
Pre-tax amount | ||||
Foreign currency translation adjustments | $ 11.2 | $ (1.7) | $ (35.9) | |
Available-for-sale securities: | ||||
Unrealized gain (loss) | 0.2 | (0.2) | 0.6 | |
Reclassification adjustment for (gains) losses to net income | 0 | 1 | 0 | |
Impact from adoption of new accounting pronouncements | [1] | 0 | 0 | (1.1) |
Cash flow hedges: | ||||
Unrealized gain (loss) | (1) | 14.8 | 6.2 | |
Reclassification adjustment for (gains) losses to net income | (16.8) | (3.4) | (2.1) | |
Pension plan: | ||||
Actuarial gain (loss) | 5.4 | 0.5 | (4.1) | |
Reclassification adjustment to net income for amortization of actuarial (gains) losses | 1 | 1.2 | 0.9 | |
Prior service costs | 0 | 0 | (8.1) | |
Reclassification adjustment to net income for amortization of net prior service credits | 0.1 | 0 | 0 | |
Total other comprehensive income (loss) | 0.1 | 12.2 | (43.6) | |
Tax (expense) benefit | ||||
Foreign currency translation adjustments | 0 | 0 | 0 | |
Available-for-sale securities: | ||||
Unrealized gain (loss) | 0 | 0 | (0.2) | |
Reclassification adjustment for (gains) losses to net income | 0 | 0 | 0 | |
Impact from adoption of new accounting pronouncements | [1] | 0 | 0 | 0.3 |
Cash flow hedges: | ||||
Unrealized gain (loss) | 0.2 | (3.6) | (1.4) | |
Reclassification adjustment for (gains) losses to net income | 4.2 | 0.7 | 0.6 | |
Pension plan: | ||||
Actuarial gain (loss) | (1) | (0.1) | 0.7 | |
Reclassification adjustment to net income for amortization of actuarial (gains) losses | (0.2) | (0.2) | (0.2) | |
Prior service costs | 0 | 0 | 1.6 | |
Reclassification adjustment to net income for amortization of net prior service credits | 0 | 0 | 0 | |
Total other comprehensive income (loss) | 3.2 | (3.2) | 1.4 | |
After-tax amount | ||||
Net income (loss) | (15.2) | 105.5 | (657.4) | |
Foreign currency translation adjustments | 11.2 | (1.7) | (35.9) | |
Available-for-sale securities: | ||||
Unrealized gain (loss) | 0.2 | (0.2) | 0.4 | |
Reclassification adjustment for (gains) losses to net income | 0 | 1 | 0 | |
Impact from adoption of new accounting pronouncements | [1] | 0 | 0 | (0.8) |
Cash flow hedges: | ||||
Unrealized gain (loss) | (0.8) | 11.2 | 4.8 | |
Reclassification adjustment for (gains) losses to net income | (12.6) | (2.7) | (1.5) | |
Pension plan: | ||||
Actuarial gain (loss) | 4.4 | 0.4 | (3.4) | |
Reclassification adjustment to net income for amortization of actuarial (gains) losses | 0.8 | 1 | 0.7 | |
Prior service costs | 0 | 0 | (6.5) | |
Reclassification adjustment to net income for amortization of net prior service credits | 0.1 | 0 | 0 | |
Total other comprehensive income (loss) | 3.3 | 9 | (42.2) | |
Total comprehensive income (loss) | $ (11.9) | $ 114.5 | $ (699.6) | |
[1] | Adjustment reflects the reclassification of unrealized gains related to the Company’s available-for-sale equity securities as of February 3, 2018 from AOCI into retained earnings associated with the adoption of ASU 2016-01. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 1,172.5 | $ 374.5 |
Accounts receivable, net | 88.7 | 38.8 |
Other current assets | 236.6 | 403.5 |
Income taxes | 51.7 | 6.3 |
Inventories, net | 2,032.5 | 2,331.7 |
Total current assets | 3,582 | 3,154.8 |
Non-current assets: | ||
Property, plant and equipment, net | 605.5 | 741.9 |
Operating lease right-of-use assets | 1,362.2 | 1,683.3 |
Goodwill | 238 | 248.8 |
Intangible assets, net | 179 | 263.8 |
Other assets | 195.8 | 201.8 |
Deferred tax assets | 16.4 | 4.7 |
Total assets | 6,178.9 | 6,299.1 |
Current liabilities: | ||
Loans and overdrafts | 0 | 95.6 |
Accounts payable | 812.6 | 227.9 |
Accrued expenses and other current liabilities | 494.1 | 697 |
Deferred revenue | 288.7 | 266.2 |
Operating lease liabilities | 377.3 | 338.2 |
Income taxes | 26 | 27.7 |
Total current liabilities | 1,998.7 | 1,652.6 |
Non-current liabilities: | ||
Long-term debt | 146.7 | 515.9 |
Operating lease liabilities | 1,147.3 | 1,437.7 |
Other liabilities | 111.1 | 116.6 |
Deferred revenue | 783.3 | 731.5 |
Deferred tax liabilities | 159.2 | 5.2 |
Total liabilities | 4,346.3 | 4,459.5 |
Commitments and contingencies | ||
Series A redeemable convertible preferred shares of $0.01 par value: 500 shares authorized, 0.625 shares outstanding | 642.3 | 617 |
Shareholders’ equity: | ||
Common shares of $0.18 par value: authorized 500 shares, 52.3 shares outstanding (2020: 52.3 shares outstanding) | 12.6 | 12.6 |
Additional paid-in capital | 258.8 | 245.4 |
Other reserves | 0.4 | 0.4 |
Treasury shares at cost: 17.7 shares (2020: 17.7 shares) | (980.2) | (984.9) |
Retained earnings | 2,189.2 | 2,242.9 |
Accumulated other comprehensive loss | (290.5) | (293.8) |
Total shareholders’ equity | 1,190.3 | 1,222.6 |
Total liabilities, redeemable convertible preferred shares and shareholders’ equity | $ 6,178.9 | $ 6,299.1 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jan. 30, 2021 | Feb. 01, 2020 |
Common shares, par value (usd per share) | $ 0.18 | $ 0.18 |
Common shares, authorized (in shares) | 500,000,000 | 500,000,000 |
Common shares, outstanding (in shares) | 52,300,000 | 52,300,000 |
Treasury shares, shares (in shares) | 17,700,000 | 17,700,000 |
Series A Redeemable Convertible Preferred Stock | ||
Preferred shares, par value (usd per share) | $ 0.01 | $ 0.01 |
Preferred shares, authorized (in shares) | 500,000,000 | 500,000,000 |
Preferred shares, outstanding (in shares) | 625,000 | 625,000 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (15.2) | $ 105.5 | $ (657.4) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 176 | 178 | 183.6 |
Amortization of unfavorable contracts | (5.4) | (5.5) | (7.9) |
Share-based compensation | 14.5 | 16.9 | 16.5 |
Deferred taxation | 141.8 | 21.5 | (105.6) |
Credit transaction, net | 0 | 0 | 160.4 |
Asset impairment charges | 159 | 47.7 | 735.4 |
Restructuring charges | 14.7 | 25.9 | 84.9 |
Net loss (gain) on extinguishment of debt | 0.4 | (6.2) | 0 |
Other non-cash movements | 0.3 | (4.3) | (3.4) |
Changes in operating assets and liabilities: | |||
Decrease (increase) in accounts receivable | (50.1) | (15.2) | 45.7 |
Proceeds from sale of in-house finance receivables | 0 | 0 | 445.5 |
Decrease (increase) in other assets and other receivables | 181.9 | (184.2) | 0.7 |
Decrease (increase) in inventories | 308 | 48.8 | (194.3) |
Increase (decrease) in accounts payable | 577.8 | 77.2 | (78.5) |
Increase (decrease) in accrued expenses and other liabilities | (185.8) | 232.9 | 55.9 |
Change in operating lease assets and liabilities | 31.2 | (9.4) | 0 |
Increase in deferred revenue | 73.1 | 30.8 | 9.7 |
Changes in income tax receivable and payable | (45.5) | 0.6 | 10.9 |
Pension plan contributions | (4.4) | (5.3) | (4.4) |
Net cash provided by operating activities | 1,372.3 | 555.7 | 697.7 |
Investing activities | |||
Purchase of property, plant and equipment | (83) | (136.3) | (133.5) |
Proceeds from sale of assets | 0 | 0.5 | 5.5 |
Purchase of available-for-sale securities | 0 | (13.3) | (0.6) |
Proceeds from sale of available-for-sale securities | 5.2 | 8.3 | 9.6 |
Net cash used in investing activities | (77.8) | (140.8) | (119) |
Financing activities | |||
Dividends paid on common shares | (19.4) | (77.4) | (79) |
Dividends paid on redeemable convertible preferred shares | (7.8) | (31.2) | (31.2) |
Repurchase of common shares | 0 | 0 | (485) |
Proceeds from term loans | 0 | 100 | 0 |
Repayments of term loans | (100) | (294.9) | (31.3) |
Settlement of Senior Notes, including third party fees | 0 | (241.5) | 0 |
Proceeds from revolving credit facilities | 900 | 858.3 | 787 |
Repayments of revolving credit facilities | (1,170) | (588.3) | (787) |
Payment of debt issuance costs | 0 | (9.3) | 0 |
Increase (decrease) of bank overdrafts | (87.4) | 47.5 | 25.9 |
Other financing activities | (14) | (0.2) | (2.1) |
Net cash used in financing activities | (498.6) | (237) | (602.7) |
Cash and cash equivalents at beginning of period | 374.5 | 195.4 | 225.1 |
Increase (decrease) in cash and cash equivalents | 795.9 | 177.9 | (24) |
Effect of exchange rate changes on cash and cash equivalents | 2.1 | 1.2 | (5.7) |
Cash and cash equivalents at end of period | $ 1,172.5 | $ 374.5 | $ 195.4 |
Consolidated Statements Of Shar
Consolidated Statements Of Shareholders' Equity - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | [1] | Common shares at par value | Additional paid-in capital | Other reserves | Treasury shares | Retained earnings | Retained earningsCumulative Effect, Period of Adoption, Adjustment | [1] | Accumulated other comprehensive (loss) income | Accumulated other comprehensive (loss) incomeCumulative Effect, Period of Adoption, Adjustment | [1] |
Balance at Feb. 03, 2018 | $ 2,499.8 | $ (16.5) | $ 15.7 | $ 290.2 | $ 0.4 | $ (1,942.1) | $ 4,396.2 | $ (15.7) | $ (260.6) | $ (0.8) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income (loss) | (657.4) | (657.4) | |||||||||||
Other comprehensive income (loss) | (41.4) | (41.4) | |||||||||||
Other comprehensive income (loss) | (42.2) | ||||||||||||
Dividends on common shares | (79.4) | (79.4) | |||||||||||
Dividends on redeemable convertible preferred shares | (32.9) | (32.9) | |||||||||||
Repurchase of common shares | (485) | (485) | |||||||||||
Treasury share retirements | 0 | (3.1) | (58.4) | 1,391 | (1,329.5) | ||||||||
Net settlement of equity based awards | (2.1) | (11.8) | 8.8 | 0.9 | |||||||||
Share-based compensation expense | 16.5 | 16.5 | |||||||||||
Balance at Feb. 02, 2019 | 1,201.6 | 12.6 | 236.5 | 0.4 | (1,027.3) | 2,282.2 | (302.8) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income (loss) | 105.5 | 105.5 | |||||||||||
Other comprehensive income (loss) | 9 | 9 | |||||||||||
Dividends on common shares | (77.4) | (77.4) | |||||||||||
Dividends on redeemable convertible preferred shares | (32.9) | (32.9) | |||||||||||
Net settlement of equity based awards | (0.1) | (8) | 42.4 | (34.5) | |||||||||
Share-based compensation expense | 16.9 | 16.9 | |||||||||||
Balance at Feb. 01, 2020 | 1,222.6 | 12.6 | 245.4 | 0.4 | (984.9) | 2,242.9 | (293.8) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income (loss) | (15.2) | (15.2) | |||||||||||
Other comprehensive income (loss) | 3.3 | 3.3 | |||||||||||
Dividends on redeemable convertible preferred shares | (33.5) | (33.5) | |||||||||||
Net settlement of equity based awards | (1.4) | (1.1) | 4.7 | (5) | |||||||||
Share-based compensation expense | 14.5 | 14.5 | |||||||||||
Balance at Jan. 30, 2021 | $ 1,190.3 | $ 12.6 | $ 258.8 | $ 0.4 | $ (980.2) | $ 2,189.2 | $ (290.5) | ||||||
[1] | Reflects reclassifications to retained earnings related to 1) unrealized gains related to the Company’s equity security investments as of February 3, 2018 from AOCI associated with the adoption of ASU 2016-01 and 2) deferred costs associated with the sale of extended service plans due to the adoption of ASU 2014-09. |
Organization and summary of sig
Organization and summary of significant accounting policies | 12 Months Ended |
Jan. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and summary of significant accounting policies | Organization and summary of significant accounting policies Signet Jewelers Limited (“Signet” or the “Company”), a holding company incorporated in Bermuda, is the world’s largest retailer of diamond jewelry. The Company operates through its 100% owned subsidiaries with sales primarily in the United States (“US”), United Kingdom (“UK”) and Canada. Signet manages its business as three reportable segments: North America, International, and Other. The “Other” reportable segment consists of subsidiaries involved in the purchasing and conversion of rough diamonds to polished stones. See Note 5 for additional discussion of the Company’s segments. Signet’s business is seasonal, with the fourth quarter accounting for approximately 35-40% of annual sales as well as accounts for a substantial portion of the annual operating profit. The “Holiday Season” consists of results for the months of November and December, with December being the highest volume month of the year. The Company has evaluated and determined that there were no additional events or transactions subsequent to January 30, 2021 for potential recognition or disclosure through the date the consolidated financial statements were issued. There are no material related party transactions. The following accounting policies have been applied consistently in the preparation of the Company’s consolidated financial statements. (a) Basis of preparation The consolidated financial statements of Signet are prepared in accordance with US generally accepted accounting principles (“US GAAP” or “GAAP”) and include the results for the 52 week period ended January 30, 2021 (“Fiscal 2021”), as Signet’s fiscal year ends on the Saturday nearest to January 31. The comparative periods are for the 52 week period ended February 1, 2020 (“Fiscal 2020”) and the 52 week period ended February 2, 2019 (“Fiscal 2019”). Intercompany transactions and balances have been eliminated in consolidation. Signet has reclassified certain prior year amounts to conform to the current year presentation. (b) Risks and Uncertainties - COVID-19 In December 2019, a novel coronavirus (“COVID-19”) was identified in Wuhan, China. In March 2020, the World Health Organization declared COVID-19 a global pandemic as a result of the further spread of the virus into all regions of the world, including those regions where the Company’s primary operations occur in North America and the UK. COVID-19 has significantly impacted consumer traffic and the Company’s retail sales, based on the perceived public health risk and government-imposed quarantines and restrictions of public gatherings and commercial activity to contain spread of the virus. Effective March 23, 2020, the Company temporarily closed all of its stores in North America, its diamond operations in New York and its support centers in the US. Additionally, effective March 24, 2020, the Company temporarily closed all of its stores in the UK. The COVID-19 pandemic has also disrupted the Company’s global supply chain, including the temporary closure of the Company’s diamond polishing operations in Botswana, and may cause additional disruptions to operations if employees of the Company become sick, are quarantined, or are otherwise limited in their ability to work at Company locations or travel for business. The Company continued to fill eCommerce orders during the temporary closure period of all stores. Beginning in the second quarter of Fiscal 2021, the Company began a measured approach to re-opening its stores, and by the end of the third quarter of Fiscal 2021 had re-opened substantially all of its stores. During the fourth quarter of Fiscal 2021, both the UK and certain Canadian provinces re-established mandated temporary closure of non-essential businesses. Canadian stores began re-opening periodically in February 2021 as provincial restrictions began to be lifted, and the UK stores are expected to open in April 2021. In addition, as a result of the uncertainty surrounding the impacts of COVID-19, beginning in March 2020, there was a significant decline in all major domestic and global financial market indicators. The Company’s share price and market capitalization significantly declined during the first half of Fiscal 2021 and while there has been substantial recovery, the sustainability of this recovery is still unpredictable in light of the current economic conditions and risks to the retail markets from COVID-19. The full extent and duration of the impact of COVID-19 on the Company’s operations and financial performance is currently unknown and depends on future developments that are uncertain and unpredictable, including the duration and possible resurgence of the pandemic, the success of the vaccine rollout globally, its impact on capital and financial markets on a macro-scale and the actions to contain the virus or mitigate its impact, among others. While the full extent of the impact of COVID-19 is currently unknown, it had a significant impact on Signet’s results of operations and cash flows during the first half of Fiscal 2021. However, management currently believes that it has adequate liquidity and business plans to continue to operate the business and mitigate the risks associated with COVID-19 for the 12 months following the date of this report. As a result of the potential risks identified related to COVID-19 on its consolidated financial statements, the Company considered and performed the following assessments during Fiscal 2021: impairment assessments for goodwill, indefinite-lived intangible assets and store level long-lived assets (including property and equipment and operating lease right-of-use assets); assessment of rent concessions, including deferrals or other lease modifications; assessment of the effectiveness of certain foreign currency and commodity derivative financial instruments; assessment of the realizability of the Company’s deferred tax assets; and assessment of the impacts of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) enacted on March 27, 2020. (c) Use of estimates The preparation of these consolidated financial statements, in conformity with US GAAP and US Securities and Exchange Commission (“SEC”) regulations, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates, and as a result of the above noted risks associated with COVID-19, it is reasonably possible that those estimates will change in the near term and the effect could be material. Estimates and assumptions are primarily made in relation to the valuation of accounts receivables, inventories, deferred revenue, derivatives, employee benefits, income taxes, contingencies, leases, asset impairments for goodwill, indefinite-lived intangible and long-lived assets and the depreciation and amortization of long-lived assets. The reported results of operations are not indicative of results expected in future periods. (d) Foreign currency translation The financial position and operating results of certain foreign operations, including the International segment and the Canadian operations of the North America segment, are consolidated using the local currency as the functional currency. Assets and liabilities are translated at the rates of exchange on the balance sheet date, and revenues and expenses are translated at the monthly average rates of exchange during the period. Resulting translation gains or losses are included in the accompanying consolidated statements of shareholders’ equity as a component of accumulated other comprehensive income (loss) (“AOCI”). Gains or losses resulting from foreign currency transactions are included within other operating income (loss) in the consolidated statements of operations, whereas translation adjustments and gains or losses related to intercompany loans of a long-term investment nature are recognized as a component of AOCI. (e) Revenue recognition The Company applies a five-step approach in determining the amount and timing of revenue to be recognized: (1) identifying the contract with a customer; (2) identifying the performance obligations in the contract; (3) determining the transaction price; (4) allocating the transaction price to the performance obligations in the contract; and (5) recognizing revenue when the corresponding performance obligation is satisfied. See Note 3 for additional discussion of the Company’s revenue recognition. (f) Cost of sales and selling, general and administrative expenses Cost of sales includes merchandise costs net of discounts and allowances; freight, processing and distribution costs; inventory shrinkage; and store operating and occupancy costs. Store operating and occupancy costs include utilities, rent, real estate taxes, common area maintenance charges and depreciation. Selling, general and administrative expenses include store staff and store administrative costs; centralized administrative expenses, including information technology; third-party credit costs and credit loss expense; advertising and promotional costs and other operating expenses not specifically categorized elsewhere in the consolidated statements of operations. Compensation and benefits costs included within cost of sales and selling, general and administrative expenses totaled $996.1 million in Fiscal 2021 (Fiscal 2020: $1,196.6 million; Fiscal 2019: $1,251.2 million). (g) Store opening costs The opening costs of new locations are expensed as incurred and included within selling, general and administrative expenses. (h) Advertising and promotional costs Advertising and promotional costs are expensed within selling, general and administrative expenses. Production costs are expensed at the first communication of the advertisements, while communication expenses are recognized each time the advertisement is communicated. For catalogs and circulars, costs are all expensed at the first date they can be viewed by the customer. Point of sale promotional material is expensed when first displayed in the stores. Gross advertising costs totaled $343.0 million in Fiscal 2021 (Fiscal 2020: $388.9 million; Fiscal 2019: $387.8 million). (i) Income taxes Income taxes are accounted for using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements. Under this method, deferred tax assets and liabilities are recognized by applying statutory tax rates in effect in the years in which the differences between the financial reporting and tax filing bases of existing assets and liabilities are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. A valuation allowance is established against deferred tax assets when it is more likely than not that all or a portion of the deferred tax assets will not be realized, based on management’s evaluation of all available evidence, both positive and negative, including reversals of deferred tax liabilities, projected future taxable income and results of recent operations. The Company does not recognize tax benefits related to positions taken on certain tax matters unless the position is more likely than not to be sustained upon examination by tax authorities. At any point in time, various tax years are subject to or are in the process of being audited by various taxing authorities. The Company records a reserve for uncertain tax positions, including interest and penalties. To the extent that management’s estimates of settlements change, or the final tax outcome of these matters is different than the amounts recorded, such differences will impact the income tax provision in the period in which such determinations are made. See Note 11 for additional discussion of the Company’s income taxes. (j) Cash and cash equivalents Cash and cash equivalents are comprised of cash on hand, money market deposits and amounts placed with external fund managers with an original maturity of three months or less. Cash and cash equivalents are carried at cost which approximates fair value. In addition, receivables from third-party credit card issuers typically converted to cash within five days of the original sales transaction are considered cash equivalents. The following table summarizes the details of the Company’s cash and cash equivalents: (in millions) January 30, 2021 February 1, 2020 Cash and cash equivalents held in money markets and other accounts $ 1,122.2 $ 326.2 Cash equivalents from third-party credit card issuers 48.8 46.3 Cash on hand 1.5 2.0 Total cash and cash equivalents $ 1,172.5 $ 374.5 The Company’s supplemental cash flow information was as follows: (in millions) Fiscal 2021 Fiscal 2020 Fiscal 2019 Non-cash investing activities: Capital expenditures in accounts payable $ 1.2 $ 0.1 $ 5.6 Supplemental cash flow information: Interest paid $ 30.5 $ 34.7 $ 39.1 Income tax paid (refunded), net (1) $ (176.0) $ 5.7 $ (44.8) (1) Includes $183.4 million refunded under the CARES Act in Fiscal 2021. See Note 11 for further details. (k) Accounts receivable Prior to the adoption of Accounting Standards Codification (“ASC”) 326 (as further described in Note 13), accounts receivable under the customer finance programs were presented net of an allowance for uncollectible amounts. This allowance represented management’s estimate of the expected losses in the accounts receivable portfolio as of the balance sheet date, and was calculated using a model that analyzed factors such as delinquency rates and recovery rates. In June 2018, the Company completed the sale of the remaining North America customer in-house finance receivables (see Note 4). Subsequent to the completion of this transaction, receivables issued by the Company but pending transfer are classified as “held for sale” and recorded at fair value in the consolidated balance sheet. See Note 21 for additional information regarding the assumptions utilized in the calculation of fair value of the finance receivables held for sale. See Note 13 for discussion of the Company’s accounts receivable and current expected credit losses subsequent to the adoption of ASC 326. (l) Inventories Inventories are primarily held for resale and are valued at the lower of cost or net realizable value. Cost is determined using weighted-average cost, on a first-in first-out basis, for all inventories except for inventories held in the Company’s diamond sourcing operations, where cost is determined using specific identification. Cost includes charges directly related to bringing inventory to its present location and condition. Such charges would include warehousing, security, distribution and certain buying costs. Net realizable value is defined as estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Inventory reserves are recorded for obsolete, slow moving or defective items and shrinkage. Inventory reserves for obsolete, slow moving or defective items are calculated as the difference between the cost of inventory and its estimated market value based on targeted inventory turn rates, future demand, management strategy and market conditions. Due to the inventory being primarily comprised of precious stones and metals including gold, the age of the inventory has a limited impact on the estimated market value. Inventory reserves for shrinkage are estimated and recorded based on historical physical inventory results, expectations of future inventory losses and current inventory levels. Physical inventories are taken at least once annually for all store locations and distribution centers. See Note 14 for additional discussion of the Company’s inventories. (m) Vendor contributions Contributions are received from vendors through various programs and arrangements including cooperative advertising. Where vendor contributions related to identifiable promotional events are received, contributions are matched against the costs of promotions. Vendor contributions received as general contributions and not related to specific promotional events are recognized as a reduction of inventory costs. (n) Property, plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation, amortization and impairment charges. Maintenance and repair costs are expensed as incurred. Depreciation and amortization are recognized on the straight-line method over the estimated useful lives of the related assets as follows: Buildings Ranging from 30 – 40 years Leasehold improvements Remaining term of lease, not to exceed 10 years Furniture and fixtures Ranging from 3 – 10 years Equipment and software Ranging from 3 – 7 years Computer software purchased or developed for internal use is stated at cost less accumulated amortization. Signet’s policy provides for the capitalization of external direct costs of materials and services associated with developing or obtaining internal use computer software. In addition, Signet also capitalizes certain payroll and payroll-related costs for employees directly associated with internal use computer projects. Amortization is charged on a straight-line basis over periods from three See Note 15 for additional discussion of the Company’s property, plant and equipment, and Note 16 for the Company’s policy for long-lived asset impairment. (o) Goodwill and intangibles In a business combination, the Company estimates and records the fair value of all assets acquired and liabilities assumed, including identifiable intangible assets and liabilities. The fair value of these intangible assets and liabilities is estimated based on management’s assessment, including selection of appropriate valuation techniques, inputs and assumptions in the determination of fair value. Significant estimates in valuing intangible assets and liabilities acquired include, but are not limited to, future expected cash flows associated with the acquired asset or liability, expected life and discount rates. The excess purchase price over the estimated fair values of the assets acquired and liabilities assumed is recognized as goodwill. Goodwill is recorded by the Company’s reporting units based on the acquisitions made by each. Goodwill and other indefinite-lived intangible assets, such as indefinite-lived trade names, are evaluated for impairment annually. Additionally, if events or conditions were to indicate the carrying value of a reporting unit or an indefinite-lived intangible asset may be greater than its fair value, the Company would evaluate the asset for impairment at that time. Impairment testing compares the carrying amount of the reporting unit or other intangible assets with its fair value. When the carrying amount of the reporting unit or other intangible assets exceeds its fair value, an impairment charge is recorded. Intangible assets with definite lives are amortized and reviewed for impairment whenever events or circumstances indicate that the carrying amount of the asset may not be recoverable. If the estimated undiscounted future cash flows related to the asset are less than the carrying amount, the Company recognizes an impairment charge equal to the difference between the carrying value and the estimated fair value, usually determined by the estimated discounted future cash flows of the asset. See Note 18 for additional discussion of the Company’s goodwill and intangibles. (p) Derivatives and hedge accounting The Company enters into various types of derivative instruments to mitigate certain risk exposures related to changes in commodity costs and foreign exchange rates. Derivative instruments are recorded in the consolidated balance sheets at fair value, as either assets or liabilities, with an offset to net income or other comprehensive income (“OCI”), depending on whether the derivative qualifies as an effective hedge. If a derivative instrument meets certain criteria, the Company designates it as a cash flow hedge within the fiscal quarter it is entered into. For effective cash flow hedge transactions, the changes in fair value of the derivative instrument is recognized directly in equity as a component of AOCI and is recognized in the consolidated statements of operations in the same period(s) and on the same financial statement line in which the hedged item affects net income. Gains and losses on derivatives that do not qualify for hedge accounting are recognized immediately in other operating income (loss). In the normal course of business, the Company may terminate cash flow hedges prior to the occurrence of the underlying forecasted transaction. For cash flow hedges terminated prior to the occurrence of the underlying forecasted transaction, management monitors the probability of the associated forecasted cash flow transactions to assess whether any gain or loss recorded in AOCI should be immediately recognized in net income. Cash flows from derivative contracts are included in net cash provided by operating activities. See Note 20 for additional discussion of the Company’s derivatives and hedge activities. (q) Employee Benefits The funded status of the defined benefit pension plan in the UK (the “UK Plan”) is recognized on the consolidated balance sheets, and is the difference between the fair value of plan assets and the projected benefit obligation measured at the balance sheet date. Gains or losses and prior service costs or credits that arise and are not included as components of net periodic pension cost are recognized, net of tax, in OCI. Signet also operates a defined contribution plan in the UK, a defined contribution retirement savings plan in the US, and an executive deferred compensation plan in the US. Contributions made by Signet to these benefit arrangements are charged primarily to selling, general and administrative expenses in the consolidated statements of operations as incurred. See Note 22 for additional discussion of the Company’s employee benefits. (r) Debt issuance costs Borrowings include primarily interest-bearing bank loans and bank overdrafts. Direct debt issuance costs on borrowings are capitalized and amortized into interest expense over the contractual term of the related loan. See Note 23 for additional discussion of the Company’s debt issuance costs. (s) Share-based compensation Signet measures share-based compensation cost for awards classified as equity at the grant date based on the estimated fair value of the award and recognizes the cost as an expense on a straight-line basis (net of estimated forfeitures) over the requisite service period of employees. Certain share awards under the Company’s plans include a condition whereby vesting is contingent on Company performance exceeding a given target, and therefore awards granted with this condition are considered to be performance-based awards. Signet estimates fair value using a Black-Scholes model for awards granted under the Omnibus Plan and the binomial valuation model for awards granted under the Share Saving Plans. Deferred tax assets for awards that result in deductions on the income tax returns of subsidiaries are recorded by Signet based on the amount of compensation cost recognized and the subsidiaries’ statutory tax rate in the jurisdiction in which it will receive a deduction. Share-based compensation is primarily recorded in selling, general and administrative expenses in the consolidated statements of operations, consistent with the relevant salary cost. See Note 26 for additional discussion of the Company’s share-based compensation plans. (t) Contingent liabilities Provisions for contingent liabilities are recorded for probable losses when management is able to reasonably estimate the loss or range of loss. When it is reasonably possible that a contingent liability may result in a loss or additional loss, the range of the potential loss is disclosed. See Note 27 for additional discussion of the Company’s contingencies. (u) Dividends Dividends on common shares are reflected as a reduction of retained earnings in the period in which they are formally declared by the Board of Directors (the “Board”). In addition, the cumulative dividends on preferred shares are reflected as a reduction of retained earnings in the period in which they are declared by the Board, as are the deemed dividends resulting from the accretion of issuance costs related to the preferred shares. See Note 7 and Note 8 for additional information related to the Company’s equity, including the preferred shares. |
New accounting pronouncements
New accounting pronouncements | 12 Months Ended |
Jan. 30, 2021 | |
Accounting Policies [Abstract] | |
New accounting pronouncements | New accounting pronouncements The following section provides a description of new accounting pronouncements ("Accounting Standard Update" or "ASU") issued by the Financial Accounting Standards Board ("FASB") that are applicable to the Company. New accounting pronouncements recently adopted The following ASU’s were adopted as of February 2, 2020. The impact on the Company's consolidated financial statements is described within the table below: Standard Description ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software: Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, issued July 2018. Aligns the requirements for capitalizing implementation costs in cloud computing arrangements with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The adoption of this ASU did not have a material impact on the Company’s financial position or results of operations. ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Topic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans, issued August 2018. Modifies the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans and clarifies the disclosure requirements regarding projected benefit obligations and accumulated benefit obligations. The ASU is effective for fiscal years ending after December 15, 2020, with early adoption permitted. The new guidance does not affect the existing recognition or measurement guidance, and therefore had no impact on the Company’s financial condition or results of operations. ASU No. 2018-13, Fair Value Measurements (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, issued August 2018. Modifies the disclosure requirements on fair value measurements in Topic 820 and eliminates ‘at a minimum’ from the phrase ‘an entity shall disclose at a minimum’ to promote the appropriate exercise of discretion by entities when considering fair value disclosures and to clarify that materiality is an appropriate consideration. The adoption of this ASU did not have a material impact on the Company’s financial position or results of operations. ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, issued June 2016. Requires entities to measure and recognize expected credit losses for financial assets measured at amortized cost basis. The estimate of expected credit losses should consider historical information, current information, and reasonable and supportable forecasts of expected losses over the remaining contractual life that affect collectability. The adoption of this ASU did not have a material impact on the Company’s financial position or results of operations upon adoption; however, this ASU impacts the accounting for expected credit losses on the Company’s non-prime customer in-house finance receivables (as discussed in Note 13). In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU is intended to reduce complexity in the accounting for income taxes while maintaining or improving the usefulness of information provided to financial statement users. The guidance amends certain existing provisions under ASC 740 to address a number of distinct items. This standard is effective for public companies in fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period for which financial statements have not yet been issued. Depending on the amendment, adoption may be applied on the retrospective, modified retrospective or prospective basis. The Company has elected to early adopt this ASU effective August 2, 2020 on a prospective basis. The adoption of this ASU did not have a material impact on the Company’s financial position or results of operations upon adoption. New accounting pronouncements issued but not yet adopted There are no new accounting pronouncements issued that are expected to be applicable to the Company in future periods. |
Revenue recognition
Revenue recognition | 12 Months Ended |
Jan. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue recognition | Revenue recognition The following tables provide the Company’s total sales, disaggregated by banner, for Fiscal 2021, Fiscal 2020 and Fiscal 2019: Fiscal 2021 (in millions) North America International Other Consolidated Sales by banner: Kay $ 2,008.6 $ — $ — $ 2,008.6 Zales 1,121.6 — — 1,121.6 Jared 920.9 — — 920.9 Piercing Pagoda 337.5 — — 337.5 James Allen 301.4 — — 301.4 Peoples 150.9 — — 150.9 International segment banners — 355.9 — 355.9 Other (1) — — 30.1 30.1 Total sales $ 4,840.9 $ 355.9 $ 30.1 $ 5,226.9 Fiscal 2020 (in millions) North America International Other Consolidated Sales by banner: Kay $ 2,414.0 $ — $ — $ 2,414.0 Zales 1,276.8 — — 1,276.8 Jared 1,088.1 — — 1,088.1 Piercing Pagoda 331.7 — — 331.7 James Allen 250.6 — — 250.6 Peoples 204.6 — — 204.6 International segment banners — 518.0 — 518.0 Other (1) — — 53.3 53.3 Total sales $ 5,565.8 $ 518.0 $ 53.3 $ 6,137.1 Fiscal 2019 (in millions) North America International Other Consolidated Sales by banner: Kay $ 2,475.2 $ — $ — $ 2,475.2 Zales 1,280.5 — — 1,280.5 Jared 1,141.4 — — 1,141.4 Piercing Pagoda 302.5 — — 302.5 James Allen 223.7 — — 223.7 Peoples 218.4 — — 218.4 International segment banners — 576.5 — 576.5 Other (1) — — 28.9 28.9 Total sales $ 5,641.7 $ 576.5 $ 28.9 $ 6,247.1 (1) Includes sales from Signet’s diamond sourcing initiative. The following tables provide the Company’s total sales, disaggregated by major product, for Fiscal 2021, Fiscal 2020 and Fiscal 2019: Fiscal 2021 (in millions) North America International Other Consolidated Sales by product: Bridal $ 2,140.5 $ 166.4 $ — $ 2,306.9 Fashion 1,987.9 69.2 — 2,057.1 Watches 145.6 108.5 — 254.1 Other (1) 566.9 11.8 30.1 608.8 Total sales $ 4,840.9 $ 355.9 $ 30.1 $ 5,226.9 Fiscal 2020 (in millions) North America International Other Consolidated Sales by product: Bridal $ 2,403.4 $ 214.3 $ — $ 2,617.7 Fashion 2,131.0 110.5 — 2,241.5 Watches 214.9 169.1 — 384.0 Other (1) 816.5 24.1 53.3 893.9 Total sales $ 5,565.8 $ 518.0 $ 53.3 $ 6,137.1 Fiscal 2019 (in millions) North America International Other Consolidated Sales by product: Bridal $ 2,478.6 $ 234.0 $ — $ 2,712.6 Fashion 2,128.1 126.3 — 2,254.4 Watches 238.2 190.9 — 429.1 Other (1) 796.8 25.3 28.9 851.0 Total sales $ 5,641.7 $ 576.5 $ 28.9 $ 6,247.1 (1) Other revenue primarily includes gift and other miscellaneous jewelry sales, extended service plans, repairs and other miscellaneous non-jewelry sales. The following tables provide the Company’s total sales, disaggregated by channel, for Fiscal 2021, Fiscal 2020 and Fiscal 2019: Fiscal 2021 (in millions) North America International Other Consolidated Sales by channel: Store $ 3,772.9 $ 238.9 $ — $ 4,011.8 eCommerce 1,068.0 117.0 — 1,185.0 Other (1) — — 30.1 30.1 Total sales $ 4,840.9 $ 355.9 $ 30.1 $ 5,226.9 Fiscal 2020 (in millions) North America International Other Consolidated Sales by channel: Store $ 4,880.2 $ 453.2 $ — $ 5,333.4 eCommerce 685.6 64.8 — 750.4 Other (1) — — 53.3 53.3 Total sales $ 5,565.8 $ 518.0 $ 53.3 $ 6,137.1 Fiscal 2019 (in millions) North America International Other Consolidated Sales by channel: Store $ 5,022.4 $ 513.4 $ — $ 5,535.8 eCommerce 619.3 63.1 — 682.4 Other (1) — — 28.9 28.9 Total sales $ 5,641.7 $ 576.5 $ 28.9 $ 6,247.1 (1) Includes sales from Signet’s diamond sourcing initiative. The Company recognizes revenues when control of the promised goods and services are transferred to customers, in an amount that reflects the consideration expected to be received in exchange for those goods. Transfer of control generally occurs at the time merchandise is taken from a store, or upon receipt of the merchandise by a customer for an eCommerce shipment. The Company excludes all taxes assessed by government authorities and collected from a customer from its reported sales. The Company’s revenue streams and their respective accounting treatments are further discussed below. On February 4, 2018, the Company adopted ASU No. 2014‑09 Revenue from Contracts with Customers (Topic 606) and related updates (“ASC 606”) using the modified retrospective approach applied only to contracts not completed as of the date of adoption with no restatement of prior periods and by recognizing the cumulative effect of initially applying the new standard as an adjustment to the opening balance of equity. During Fiscal 2019, an additional $111.2 million of revenue was recognized primarily for non-cash consideration from customer trade-ins and $16.5 million of previously capitalized contract acquisitions costs were reclassified to beginning retained earnings. Merchandise sales and repairs Store sales are recognized when the customer receives and pays for the merchandise at the store with cash, in-house customer finance, private label credit card programs, a third-party credit card or a lease purchase option. For online sales shipped to customers, sales are recognized at the estimated time the customer has received the merchandise. Amounts related to shipping and handling that are billed to customers are reflected in sales and the related costs are reflected in cost of sales. Revenues on the sale of merchandise are reported net of anticipated returns and sales tax collected. Returns are estimated based on previous return rates experienced. Any deposits received from a customer for merchandise are deferred and recognized as revenue when the customer receives the merchandise. Revenues derived from providing replacement merchandise on behalf of insurance organizations are recognized upon receipt of the merchandise by the customer. Revenues on repair of merchandise are recognized when the service is complete and the customer collects the merchandise at the store. Extended service plans and lifetime warranty agreements (“ESP”) The Company recognizes revenue related to ESP sales in proportion to when the expected costs will be incurred. The deferral period for ESP sales is determined from patterns of claims costs, including estimates of future claims costs expected to be incurred. Management reviews the trends in claims to assess whether changes are required to the revenue and cost recognition rates utilized. A significant change in estimates related to the time period or pattern in which warranty-related costs are expected to be incurred could materially impact revenues. All direct costs associated with the sale of these plans are deferred and amortized in proportion to the revenue recognized and disclosed as either other current assets or other assets in the consolidated balance sheets. These direct costs primarily include sales commissions and credit card fees. Amortization of deferred ESP selling costs is included within selling, general and administrative expenses in the consolidated statements of operations. Amortization of deferred ESP selling costs was $26.3 million, $29.5 million and $52.4 million in Fiscal 2021, and Fiscal 2020 and Fiscal 2019, respectively. Unamortized deferred selling costs as of Fiscal 2021 and Fiscal 2020 were as follows: (in millions) January 30, 2021 February 1, 2020 Deferred ESP selling costs Other current assets $ 26.2 $ 23.6 Other assets 85.1 80.0 Total deferred ESP selling costs $ 111.3 $ 103.6 The North America segment sells ESP, subject to certain conditions, to perform repair work over the life of the product. Customers generally pay for ESP at the store at the time of merchandise sale. Revenue from the sale of the lifetime ESP is recognized consistent with the estimated pattern of claim costs expected to be incurred by the Company in connection with performing under the ESP obligations. Lifetime ESP revenue is deferred and recognized over a maximum of 17 years after the sale of the warranty contract. Although claims experience varies between the Company’s national banners, thereby resulting in different recognition rates, approximately 55% of revenue is recognized within the first two years on a weighted average basis. The North America segment also sells a Jewelry Replacement Plan (“JRP”). The JRP is designed to protect customers from damage or defects of purchased merchandise for a period of three years. If the purchased merchandise is defective or becomes damaged under normal use in that time period, the item will be replaced. JRP revenue is deferred and recognized on a straight-line basis, generally over the three year protection period. Signet also sells warranty agreements in the capacity of an agent on behalf of a third-party. The commission that Signet receives from the third-party is recognized at the time of sale less an estimate of cancellations based on historical experience. Sale vouchers Certain promotional offers award sale vouchers to customers who make purchases above a certain value, which grant a fixed discount on a future purchase within a stated time frame. The Company accounts for such vouchers by allocating the fair value of the voucher between the initial purchase and the future purchase using the relative-selling-price method. Sale vouchers are not sold on a stand-alone basis. The fair value of the voucher is determined based on the average sales transactions in which the vouchers were issued, when the vouchers are expected to be redeemed and the estimated voucher redemption rate. The fair value allocated to the future purchase is recorded as deferred revenue. Consignment inventory sales Sales of consignment inventory are accounted for on a gross sales basis as the Company maintains control of the merchandise through the point of sale as well as provides independent advice, guidance and after-sales service to customers. Supplier products are selected at the discretion of the Company, and the Company is responsible for determining the selling price and for physical security of the products. The products sold from consignment inventory are similar in nature to other products that are sold to customers and are sold on the same terms. Deferred revenue Deferred revenue is comprised primarily of ESP and voucher promotions as follows: (in millions) January 30, 2021 February 1, 2020 ESP deferred revenue $ 1,028.9 $ 960.0 Voucher promotions and other 43.1 37.7 Total deferred revenue $ 1,072.0 $ 997.7 Disclosed as: Current liabilities $ 288.7 $ 266.2 Non-current liabilities 783.3 731.5 Total deferred revenue $ 1,072.0 $ 997.7 (in millions) Fiscal 2021 Fiscal 2020 ESP deferred revenue, beginning of period $ 960.0 $ 927.6 Plans sold (1) 337.4 405.1 Revenue recognized (2) (268.5) (372.7) ESP deferred revenue, end of period $ 1,028.9 $ 960.0 (1) Includes impact of foreign exchange translation. (2) During Fiscal 2021 and Fiscal 2020, the Company recognized sales of approximately $163.5 million and $193.6 million, respectively, related to deferred revenue that existed at the beginning of the year in respect to ESP and voucher promotions. Additionally, no ESP revenue was recognized beginning on March 23, 2020 due to the temporary closure of the Company’s stores and service centers as a result of COVID-19. As the Company began reopening stores and service centers during the second quarter of Fiscal 2021, the Company resumed recognizing service revenue as it fulfilled its performance obligations under the ESP. |
Credit transaction, net
Credit transaction, net | 12 Months Ended |
Jan. 30, 2021 | |
Receivables [Abstract] | |
Credit transaction, net | Credit transaction, net During the fiscal year ended February 3, 2018, Signet announced a strategic initiative to outsource its North America private label credit card programs and sell the existing in-house finance receivables. In October 2017, Signet, through its subsidiary Sterling Jewelers Inc (“Sterling”), completed the sale of the prime-only credit quality portion of Sterling’s in-house finance receivable portfolio to Comenity Bank (“Comenity”). The Company had previously entered into an agreement with Comenity to provide credit services to its Zales banners for all credit card customers (prime and non-prime), and this pre-existing Zales arrangement with Comenity was unaffected by the execution of the Sterling agreement. The Zales agreement expires in January 2023, and the Sterling agreement expires in October 2024. Under the program agreements, Comenity established a program to issue credit cards to be serviced, marketed and promoted in accordance with the terms of the respective agreement. Subject to limited exceptions, Comenity is the exclusive issuer of private label credit cards or an installment or other closed end loan product in the United States bearing specified Company trademarks during the term of the agreements. Upon expiration or termination by either party of the agreements, the Company retains the option to purchase, or arrange the purchase by a third party of, the program assets from Comenity on terms that are no more onerous to the Company than those applicable to Comenity under the agreements, or in the case of a purchase by a third party, on customary terms. The program agreements contain customary representations, warranties and covenants. In addition to the prime-only credit card portfolio, the Company also entered into various agreements to outsource the non-prime portion of its private label credit card program for Sterling and sell the existing in-house financing receivables. Below is a summary of these transactions related to the non-prime portfolio: Fiscal 2019 non-prime transaction During March 2018, the Company, through its subsidiary Sterling, entered into a definitive agreement with CarVal Investors (“CarVal”) to sell all eligible non-prime in-house accounts receivable. In May 2018, the Company exercised its option to appoint a minority party, Castlelake, L.P. (“Castlelake”), to purchase 30% of the eligible receivables sold to CarVal under the Receivables Purchase Agreement. In June 2018, the Company completed the sale of the non-prime in-house accounts receivable at a price expressed as 72% of the par value of the accounts receivable. The purchase price was settled with 95% received as cash upon closing. The remaining 5% of the purchase price was deferred until the second anniversary of the closing date. Final payment of the deferred purchase price was contingent upon the non-prime in-house finance receivable portfolio achieving a pre-defined yield, which was finalized in Fiscal 2021 (see below). The agreement contains customary representations, warranties and covenants. Receivables reclassification: In March 2018, the eligible non-prime in-house accounts receivables that met the criteria for sale were reclassified from "held for investment" to "held for sale" on the consolidated balance sheet. Accordingly, the receivables were recorded at the lower of cost (par) or fair value as of the date of the reclassification with subsequent adjustments to the asset fair value as required through the closing date of the transaction. During Fiscal 2019, total valuation losses of $160.4 million were recorded within credit transaction, net in the consolidated statement of operations. Proceeds received: In June 2018, the Company received $445.5 million in cash consideration for the receivables sold based on the terms of the agreements with CarVal and Castlelake described above. The Company also recorded a receivable related to the deferred purchase price payment within other assets and will adjust the asset to fair value in each period of the performance period. See Note 21 for additional information regarding the fair value of deferred purchase price. Expenses: During Fiscal 2019, the Company incurred $7.0 million of transaction-related costs, which were recorded within credit transaction, net in the consolidated statement of operations. In addition, for a five-year term, Signet will remain the issuer of non-prime credit with investment funds managed by CarVal and Castlelake purchasing forward receivables at a discount rate determined in accordance with their respective agreements. Signet will hold the newly issued non-prime credit receivables on its balance sheet for two business days prior to selling the receivables to the respective counterparty in accordance with the agreements. Servicing of the non-prime receivables, including operational interfaces and customer servicing, will continue to be provided by Genesis Financial Solutions (“Genesis”) under the five-year agreement entered into with the Company in October 2017. Fiscal 2021 non-prime agreements During Fiscal 2021, the 2018 agreements pertaining to the purchase of forward flow receivables were terminated and new agreements were executed with CarVal and Castlelake which are effective until June 2021. Historically, non-prime receivables represent approximately 7% of Signet’s consolidated revenue on an annual basis. The new agreements provide that CarVal and Castlelake will continue to purchase add-on non-prime receivables created on existing customer accounts at a discount rate determined in accordance with the new agreements. As a result of the above agreements, Signet began retaining forward flow non-prime receivables created for new customers, which ultimately represented approximately 2% of Signet’s Fiscal 2021 revenue. The termination of the previous agreements has no effect on the receivables that were previously sold to CarVal and Castlelake prior to the termination, except that Signet agreed to extend the parties’ payment obligation for the remaining 5% of the receivables previously purchased in June 2018 until the new agreements terminate. The Company’s agreement with the credit servicer Genesis remains in place. During the fourth quarter of Fiscal 2021, the Company reached additional agreements with the Investors (as described in Note 13) to further amend the purchase agreements described above. CarVal will continue to purchase add-on receivables for existing accounts and will purchase 50% of new forward flow non-prime receivables through June 30, 2021. Genesis will purchase the remaining 50% of new forward flow non-prime receivables through June 30, 2021. Castlelake will not purchase any new forward flow non-prime receivables but will continue to purchase add-on receivables for existing accounts through June 30, 2021. Signet will continue to retain add-ons receivables for existing accounts. The following table presents the components of Signet’s accounts receivable: (in millions) January 30, 2021 February 1, 2020 Customer in-house finance receivables, net $ 72.0 $ — Accounts receivable, trade 11.6 34.4 Accounts receivable, held for sale 5.1 4.4 Accounts receivable, net $ 88.7 $ 38.8 As further discussed in Note 4, during the fiscal year ended February 3, 2018, Signet announced a strategic initiative to outsource its North America private label credit card programs. Non-prime in-house finance receivables not maintained by the Company are sold to CarVal, Castlelake, and Genesis (collectively, the “Investors”). Receivables issued by the Company but pending transfer to the Investors as of period end are classified as “held for sale” and included in accounts receivable, net, in the consolidated balance sheets. These accounts receivable held for sale are recorded at fair value. Accounts receivable, trade, includes amounts receivable relating to the insurance loss replacement business in the International segment and accounts receivable from our diamond sourcing initiative in the Other segment. Customer in-house finance receivables As discussed in Note 4, the Company began to retain certain customer in-house finance receivables in the second quarter of Fiscal 2021. The allowance for credit losses is an estimate of expected credit losses, measured over the estimated life of its credit card receivables that considers forecasts of future economic conditions in addition to information about past events and current conditions. The Company accounts for the expected credit losses under ASC 326, “Measurement of Credit Losses on Financial Instruments,” which is referred to as the Current Expected Credit Loss (“CECL”) model. The estimate under the CECL model is significantly influenced by the composition, characteristics and quality of the Company’s portfolio of credit card receivables, as well as the prevailing economic conditions and forecasts utilized. The estimate of the allowance for credit losses includes an estimate for uncollectible principal as well as unpaid interest and fees. The allowance is maintained through an adjustment to the provision for credit losses and is evaluated for appropriateness and adjusted quarterly. CECL requires entities to use a “pooled” approach to estimate expected credit losses for financial assets with similar risk characteristics. The Company evaluated multiple risk characteristics of its credit card receivables portfolio and determined that credit quality and account vintage to be the most significant characteristics for estimating expected credit losses. To estimate its allowance for credit losses, the Company segregates its credit card receivables into credit quality categories using the customers’ FICO scores. The following three industry standard FICO score categories are used: • 620 to 659 (“Near Prime”) • 580 to 619 (“Subprime”) • Less than 580 (“Deep Subprime”) These risk characteristics are evaluated on at least an annual basis, or more frequently as facts and circumstances warrant. The expected loss rates are adjusted on a quarterly basis based on historical loss trends and are risk-adjusted for current and future economic conditions and events. As summarized in the table below, based on the changes in the agreements with the Investors in Fiscal 2021, there is currently one vintage year since the Company began maintaining new accounts. The following table disaggregates the Company’s customer in-house finance receivables by credit quality and vintage year as of January 30, 2021: (in millions) Year of origination Credit quality Fiscal 2021 Near Prime $ 46.6 Subprime 38.9 Deep Subprime 12.0 Total at amortized cost $ 97.5 In estimating its allowance for credit losses, for each identified risk category, management utilized estimation methods based primarily on historical loss experience, current conditions, and other relevant factors. These methods utilize historical charge-off data of the Company’s non-prime portfolio, as well as incorporate any applicable macroeconomic variables (such as unemployment) that may be expected to impact credit performance. In addition to the quantitative estimate of expected credit losses under CECL using the historical loss information, the Company also incorporates qualitative adjustments for certain factors such as Company specific risks, changes in current economic conditions that may not be captured in the quantitatively derived results, or other relevant factors to ensure the allowance for credit losses reflects the Company’s best estimate of current expected credit losses. Management considered qualitative factors such as the unfavorable macroeconomic conditions caused by the COVID-19 uncertainty (including rates of unemployment), the Company’s non-prime portfolio performance during the prior recession, and the potential impacts of the economic stimulus packages in the US, in developing its estimate for current expected credit losses for the current period. The following table is a rollforward of the Company’s allowance for credit losses on customer in-house finance receivables: (in millions) Fiscal 2021 Beginning balance $ — Provision for credit losses 26.1 Write-offs (0.6) Recoveries — Ending balance $ 25.5 Beginning in the second quarter, in connection with the new agreements executed with the Investors, additions to the allowance for credit losses are made by recording charges to bad debt expense (credit losses) within selling, general and administrative expenses within the consolidated statements of operations. The uncollectible portion of customer in-house finance receivables are charged to the allowance for credit losses when an account is written-off after 180 days of non-payment, or in circumstances such as bankrupt or deceased cardholders. Write-offs on customer in-house finance receivables include uncollected amounts related to principal, interest, and late fees. Uncollectible accrued interest is accounted for by recognizing credit loss expense. Recoveries on customer in-house finance receivables previously written-off as uncollectible are credited to the allowance for credit losses. A credit card account is contractually past due if the Company does not receive the minimum payment by the specified due date on the cardholder’s statement. It is the Company’s policy to continue to accrue interest and fee income on all credit card accounts, except in limited circumstances, until the credit card account balance and all related interest and other fees are paid or charged-off, typically at 180 days delinquent, as noted above. The following table disaggregates the Company’s customer in-house finance receivables by past due status as of January 30, 2021: (in millions) Current $ 81.3 1 - 30 days past due 9.1 31 - 60 days past due 2.6 61 - 90 days past due 1.7 Greater than 90 days past due 2.8 Total at amortized cost $ 97.5 Prior to completion of the Credit Transaction, the activity in Fiscal 2019 related to the allowance for credit losses on Sterling customer in-house finance receivables is shown below. There was no activity in Fiscal 2020 as the completion of the sale of in-house finance receivables occurred in June 2018. (in millions) Fiscal 2019 Beginning balance $ 113.5 Charge-offs, net (56.3) Recoveries (4.2) Provision 54.6 Reversal of allowance on receivables sold (107.6) Ending balance $ — |
Segment information
Segment information | 12 Months Ended |
Jan. 30, 2021 | |
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 segment sales and operating income, after the elimination of any inter-segment transactions, to determine resource allocations and performance assessment measures. Signet manages its business as three reportable segments: North America, International, and Other. Signet’s sales are derived from the retailing of jewelry, watches, other products and services as generated through the management of its reportable segments. The Company allocates certain support center costs between operating segments, and the remainder of the unallocated costs are included with the corporate and unallocated expenses presented. In addition, beginning in Fiscal 2021, the Company allocates restructuring costs (further described in Note 6) to the operating segment where these charges were incurred, and the presentation of such costs has been reflected consistently in all periods presented. The North America reportable segment operates across the US and Canada. Its US stores operate nationally in malls and off-mall locations principally as Kay (Kay Jewelers and Kay Jewelers Outlet), Zales (Zales Jewelers and Zales Outlet), Jared (Jared The Galleria Of Jewelry and Jared Vault), James Allen and Piercing Pagoda, which operates through mall-based kiosks. Its Canadian stores operate as the Peoples Jewellers store banner. The International reportable segment 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 subsidiaries involved in the purchasing and conversion of rough diamonds to polished stones. (in millions) Fiscal 2021 Fiscal 2020 Fiscal 2019 Sales: North America segment (1) $ 4,840.9 $ 5,565.8 $ 5,641.7 International segment 355.9 518.0 576.5 Other segment 30.1 53.3 28.9 Total sales $ 5,226.9 $ 6,137.1 $ 6,247.1 Operating income (loss): North America segment (2) $ 57.9 $ 284.9 $ (666.0) International segment (3) (43.3) 9.0 4.4 Other segment (4) (0.3) (15.9) (11.7) Corporate and unallocated expenses (5) (72.0) (119.7) (91.3) Total operating income (loss) (57.7) 158.3 (764.6) Interest expense (32.0) (35.6) (39.7) Other non-operating income, net — 7.0 1.7 Income (loss) before income taxes $ (89.7) $ 129.7 $ (802.6) Depreciation and amortization: North America segment $ 163.7 $ 159.9 $ 165.8 International segment 12.0 17.8 17.5 Other segment 0.3 0.3 0.3 Total depreciation and amortization $ 176.0 $ 178.0 $ 183.6 Capital additions: North America segment $ 79.0 $ 128.3 $ 123.9 International segment 4.0 8.0 9.6 Other segment — — — Total capital additions $ 83.0 $ 136.3 $ 133.5 (1) Sales include sales of $150.9 million, $204.6 million and $218.3 million generated by Canadian operations in Fiscal 2021, Fiscal 2020 and Fiscal 2019, respectively. (2) Fiscal 2021 includes: 1) $1.6 million related to inventory charges recorded in conjunction with the Company’s restructuring activities; 2) $36.0 million primarily related to severance, professional fees and store closure costs recorded in conjunction with the Company’s restructuring activities; and 3) asset impairment charges of $136.7 million. Fiscal 2020 includes: 1) $6.0 million related to inventory charges recorded in conjunction with the Company’s restructuring activities; 2) $42.1 million primarily related to severance, professional fees and store closure costs recorded in conjunction with the Company’s restructuring activities; and 3) asset impairment charges of $47.7 million. Fiscal 2019 includes: 1) $52.7 million related to inventory charges recorded in conjunction with the Company’s restructuring activities; 2) $44.9 million primarily related to severance, professional fees and store closure costs recorded in conjunction with the Company’s restructuring activities; 3) asset impairment charges of $731.8 million; and 4) $160.4 million from the valuation losses related to the sale of eligible non-prime in-house accounts receivable. See Note 6, Note 18 and Note 16 for additional information. (3) Fiscal 2021 includes: 1) $9.7 million primarily related to severance and store closure costs recorded in conjunction with the Company’s restructuring activities; and 2) asset impairment charges of $22.3 million. Fiscal 2020 includes $7.0 million primarily related to severance and store closure costs recorded in conjunction with the Company’s restructuring activities. Fiscal 2019 includes: 1) $8.5 million primarily related to severance and store closure costs recorded in conjunction with the Company’s restructuring activities; and 2) $3.8 million related to inventory charges recorded in conjunction with the Company’s restructuring activities. See Note 6 and Note 16 for additional information. (4) Fiscal 2021 includes $0.2 million benefit recognized due to a change in inventory reserves previously recognized as part of the Company’s restructuring activities. Fiscal 2020 includes $3.2 million related to inventory charges recorded in conjunction with the Company’s restructuring activities. Fiscal 2019 includes: 1) $5.7 million related to inventory charges recorded in conjunction with the Company’s restructuring activities; and 2) asset impairment charges of $3.6 million. See Note 6 and Note 18 for additional information. (5) Fiscal 2021 includes: 1) charges of $7.5 million related to the settlement of previously disclosed shareholder litigation matters, net of expected insurance proceeds; and 2) $0.5 million related to charges recorded in conjunction with the Company’s restructuring activities. Fiscal 2020 includes: 1) charges of $33.2 million related to the settlement of previously disclosed shareholder litigation matters, inclusive of expected insurance proceeds; and 2) $20.8 million related to charges recorded in conjunction with the Company’s restructuring activities. Fiscal 2019 includes: 1) $10.3 million related to charges recorded in conjunction with the Company’s restructuring activities; 2) $11.0 million related to the resolution of a previously disclosed regulatory matter; and 3) $7.0 million representing transaction costs associated with the sale of the non-prime in-house accounts receivable. See Note 4, Note 27 and Note 6 for additional information. (in millions) January 30, 2021 February 1, 2020 Total assets: North America segment $ 5,101.9 $ 5,240.2 International segment 514.2 546.4 Other segment 44.9 91.3 Corporate and unallocated 517.9 421.2 Total assets $ 6,178.9 $ 6,299.1 Total long-lived assets: North America segment $ 978.1 $ 1,196.7 International segment 41.6 54.6 Other segment 2.8 3.2 Total long-lived assets $ 1,022.5 $ 1,254.5 |
Restructuring plans
Restructuring plans | 12 Months Ended |
Jan. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring plans | Restructuring Plans Signet Path to Brilliance Plan During the first quarter of Fiscal 2019, Signet launched a three-year comprehensive transformation plan, the “Signet Path to Brilliance” plan (the “Plan”) to reposition the Company to be the OmniChannel jewelry category leader. The Plan was originally expected to result in pre-tax charges in the range of $200 million - $220 million over the duration of the plan of which $105 million - $115 million are expected to be cash charges. To date the Company has incurred charges of $252.6 million under the Plan, including $126.9 million in non-cash charges, which have exceeded the original estimates of the Plan based primarily on certain accelerated actions during Fiscal 2021, specifically as it relates to the optimization of its real estate footprint and the right-sizing of staffing at its stores and support centers. During Fiscal 2021, restructuring charges of $47.6 million were recognized, primarily related to store closure costs (including non-cash accelerated depreciation on property and equipment), severance costs and professional fees for legal and consulting services. As of the end of Fiscal 2021, the restructuring activities under the Plan are substantially complete and any remaining charges under the Plan are not expected to be material. Restructuring charges and other Plan related costs are classified in the consolidated statements of operations as follows: (in millions) Statement of operations location Fiscal 2021 Fiscal 2020 Fiscal 2019 Inventory charges (1) Restructuring charges - cost of sales $ 1.4 $ 9.2 $ 62.2 Other Plan related expenses (2) Restructuring charges 46.2 69.9 63.7 Total Signet Path to Brilliance Plan expenses $ 47.6 $ 79.1 $ 125.9 (1) Inventory charges represent non-cash charges. See Note 14 for additional information related to inventory and inventory reserves. (2) Fiscal 2021, Fiscal 2020, and Fiscal 2019 other Plan related expenses included $14.7 million, $16.7 million, and $22.7 million of non-cash charges, respectively. The composition of restructuring charges the Company incurred during Fiscal 2021, Fiscal 2020 and Fiscal 2019, as well as the cumulative amount incurred through January 30, 2021, were as follows: (in millions) Fiscal 2021 Fiscal 2020 Fiscal 2019 Cumulative amount Inventory charges $ 1.4 $ 9.2 $ 62.2 $ 72.8 Termination benefits 24.1 16.1 9.7 49.9 Store closure and other costs 22.1 53.8 54.0 129.9 Total Signet Path to Brilliance Plan expenses $ 47.6 $ 79.1 $ 125.9 $ 252.6 Plan liabilities of $8.6 million were recorded within accrued expenses and other current liabilities and Plan liabilities of $1.6 million were recorded within other liabilities in the consolidated balance sheet as of January 30, 2021. Plan liabilities primarily represent store closure liabilities and consulting services. The following table summarizes the activity related to the Plan liabilities between periods: (in millions) Termination benefits Store closure and other costs Consolidated Balance at February 3, 2018 $ — $ — $ — Payments and other adjustments (9.7) (103.6) (113.3) Charged to expense 9.7 116.2 125.9 Balance at February 2, 2019 — 12.6 12.6 Payments and other adjustments (14.1) (65.2) (79.3) Charged to expense 16.1 63.0 79.1 Balance at February 1, 2020 2.0 10.4 12.4 Payments and other adjustments (24.0) (25.8) (49.8) Charged to expense 24.1 23.5 47.6 Balance at January 30, 2021 $ 2.1 $ 8.1 $ 10.2 |
Redeemable preferred shares
Redeemable preferred shares | 12 Months Ended |
Jan. 30, 2021 | |
Temporary Equity Disclosure [Abstract] | |
Redeemable preferred shares | Redeemable preferred shares On October 5, 2016, the Company issued 625,000 preferred shares to Green Equity Investors VI, L.P., Green Equity Investors Side VI, L.P., LGP Associates VI-A LLC and LGP Associates VI-B LLC, all affiliates of Leonard Green & Partners, L.P., (together, the “Investors”) for an aggregate purchase price of $625.0 million, or $1,000 per share (the “Stated Value”) pursuant to the investment agreement dated August 24, 2016. The Company's preferred shares are classified as temporary equity within the consolidated balance sheets. In connection with the issuance of the preferred shares, the Company incurred direct and incremental expenses of $13.7 million, including financial advisory fees, closing costs, legal expenses and other offering-related expenses. These direct and incremental expenses originally reduced the preferred shares carrying value, and are accreted through retained earnings as a deemed dividend from the date of issuance through the first possible known redemption date, November 2024. Accumulated accretion relating to these fees of $7.3 million was recorded in the consolidated balance sheet as of January 30, 2021 (February 1, 2020: $5.7 million). Dividend rights: The preferred shares rank senior to the Company’s common shares, with respect to dividend rights and rights on the distribution of assets on any voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Company. The liquidation preference for preferred shares is equal to the greater of (a) the Stated Value per share, plus all accrued but unpaid dividends and (b) the consideration holders would have received if preferred shares were converted into common shares immediately prior to the liquidation. Preferred shareholders are entitled to a cumulative dividend at the rate of 5% per annum, payable quarterly in arrears, commencing on February 15, 2017, either in cash or by increasing the Stated Value at the option of the Company. In addition, preferred shareholders were entitled to receive dividends or distributions declared or paid on common shares on an as-converted basis, other than the Company’s regularly declared quarterly cash dividends not in excess of 130% of the arithmetic average of the regular, quarterly cash dividends per common share, if any, declared by the Company during the preceding four calendar quarters. On November 2, 2016, the Board of Directors approved certain changes to the rights of the preferred shareholders, including the following: (a) elimination of the right of preferred shareholders to receive dividends or other distributions declared on the Company’s common shares and inclusion of adjustments to the conversion rate in the event of any dividend, distribution, spin-off or certain other events or transactions in respect of the common shares; and (b) addition of a requirement for approval by the holders of the majority of the issued preferred shares for the declaration or payment by the Company of any dividends or other distributions on the common shares other than (i) regularly declared quarterly cash dividends paid on the issued common shares in any calendar quarter in an amount per share that is not more than 130% of the arithmetic average of the regular, quarterly cash dividends per common share, if any, declared by the Company during the preceding four calendar quarters for such quarter and (ii) any dividends or other distributions which are paid or distributed at the same time on the common shares and the preferred shares, provided that the amount paid or distributed to the preferred shares is based on the number of common shares into which such preferred shares could be converted on the applicable record date for such dividends or other distributions. Conversion features: Preferred shares are convertible at the option of the holders at any time into common shares at the then applicable conversion rate. The conversion rate is subject to certain anti-dilution and other adjustments, including stock split / reverse stock split transactions, regular dividends declared on common shares, share repurchases (excluding amounts through open market transactions or accelerated share repurchases) and issuances of common shares or other securities convertible into common shares. The initial issuance did not include a beneficial conversion feature as the conversion price used to set the conversion ratio at the time of issuance was greater than the Company’s common stock price. At any time on or after October 5, 2018, all or a portion of outstanding preferred shares are convertible at the option of the Company if the closing price of common shares exceeds 175% of the then applicable conversion price for at least 20 consecutive trading days. The following table presents certain conversion measures as of January 30, 2021 and February 1, 2020: (in millions, except conversion rate and conversion price) January 30, 2021 February 1, 2020 Conversion rate 12.2297 12.2297 Conversion price $ 81.7682 $ 81.7682 Potential impact of preferred shares if-converted to common shares 7.9 7.6 Liquidation preference $ 656.8 $ 632.8 Redemption rights: At any time after November 15, 2024, the Company will have the right to redeem any or all, and the holders of the preferred shares will have the right to require the Company to repurchase any or all, of the preferred shares for cash at a price equal to the Stated Value plus all accrued but unpaid dividends. Upon certain change of control or delisting events involving the Company, preferred shareholders can require the Company to repurchase, subject to certain exceptions, all or any portion of its preferred shares at (a) an amount in cash equal to 101% of the Stated Value plus all accrued but unpaid dividends or (b) the consideration the holders would have received if they had converted their preferred shares into common shares immediately prior to the change of control event. Voting rights: Preferred shareholders are entitled to vote with the holders of common shares on an as-converted basis. Holders of preferred shares are entitled to a separate class vote with respect to certain designee(s) for election to the Company’s Board of Directors, amendments to the Company’s organizational documents that have an adverse effect on the preferred shareholders and issuances by the Company of securities that are senior to, or equal in priority with, the preferred shares. Registration rights: Preferred shareholders have certain customary registration rights with respect to the preferred shares and the shares of common shares into which they are converted, pursuant to the terms of a registration rights agreement. The Company declared the Preferred Share dividends during Fiscal 2021 payable “in-kind” by increasing the Stated Value of the Preferred Shares. The Stated Value of the Preferred Shares increased by $37.97 per share during Fiscal 2021, and increased by $12.97 per share subsequent to the end of Fiscal 2021, all of which will become payable upon liquidation of the Preferred Shares. Refer to Note 8 for additional discussion of the Company’s dividends on Preferred Shares. |
Common shares, treasury shares,
Common shares, treasury shares, reserves and dividends | 12 Months Ended |
Jan. 30, 2021 | |
Equity [Abstract] | |
Common shares, treasury shares, reserves and dividends | Common shares, treasury shares, reserves and dividends Common shares The par value of each Common Share is 18 cents. There have been no issuance of common shares in Fiscal 2021, Fiscal 2020, or Fiscal 2019. Treasury shares Signet may from time to time repurchase common shares under various share repurchase programs authorized by Signet’s Board. Repurchases may be made in the open market, through block trades, accelerated share repurchase agreements or otherwise. The timing, manner, price and amount of any repurchases will be determined by the Company at its discretion, and will be subject to economic and market conditions, stock prices, applicable legal requirements and other factors. The repurchase programs are funded through Signet’s existing cash reserves and liquidity sources. Repurchased shares may be held as treasury shares and used by Signet primarily for issuance of share based awards (refer to Note 26), or for general corporate purposes. Treasury shares represent the cost of shares that the Company purchased in the market under the applicable authorized repurchase program, shares forfeited under the Omnibus Incentive Plan and those previously held by the Employee Stock Ownership Trust (“ESOT”) to satisfy options under the Company’s share option plans. The Company reflected shares delivered as treasury shares as of the date the shares were physically delivered in computing the weighted average common shares outstanding for both basic and diluted earnings per share. The share repurchase activity is outlined in the table below: Fiscal 2021 Fiscal 2020 Fiscal 2019 (in millions, expect per share amounts) Amount Shares Amount Average Shares Amount Average Shares Amount Average 2017 Program (1) $ 600.0 — $ — $ — — — $ 0.00 7.5 $ 434.4 $ 57.64 2016 Program (2) $ 1,375.0 n/a n/a n/a n/a n/a n/a 1.3 $ 50.6 $ 39.76 Total — $ — $ — — — $ 0.00 8.8 $ 485.0 $ 55.06 (1) The 2017 Program had $165.6 million remaining as of January 30, 2021. (2) The 2016 Program was completed in March 2018. n/a Not applicable. Shares were reissued in the amounts of 0.0 million, 0.4 million and 0.2 million, net of taxes and forfeitures, in Fiscal 2021, Fiscal 2020 and Fiscal 2019, respectively, to satisfy awards outstanding under existing share-based compensation plans. During Fiscal 2021, there were no retirements of common shares previously held as treasury shares in the consolidated balance sheets. Dividends on common shares As a result of COVID-19, Signet’s Board of Directors elected to temporarily suspend the dividend program on common shares, effective in the first quarter of Fiscal 2021. Fiscal 2021 Fiscal 2020 Fiscal 2019 (in millions, except per share amounts) Cash dividend Total Cash dividend Total Cash dividend Total First quarter $ 0.00 — $ 0.37 $ 19.3 $ 0.37 $ 21.8 Second quarter 0.00 — 0.37 19.3 0.37 19.2 Third quarter 0.00 — 0.37 19.4 0.37 19.2 Fourth quarter (1) 0.00 — 0.37 19.4 0.37 19.2 Total $ — $ — $ 1.48 $ 77.4 $ 1.48 $ 79.4 (1) Signet’s dividend policy results in the dividend payment date being a quarter in arrears from the declaration date. As of February 1, 2020, there was $19.4 million recorded in accrued expenses and other current liabilities in the consolidated balance sheets reflecting the cash dividends declared for the fourth quarter of Fiscal 2020. There were no dividends declared or accrued as of January 30, 2021. . Dividends on preferred shares Fiscal 2021 Fiscal 2020 Fiscal 2019 (in millions) Total dividends Total cash Total cash First quarter $ 7.8 $ 7.8 $ 7.8 Second quarter 7.9 7.8 7.8 Third quarter 8.0 7.8 7.8 Fourth quarter (1) 8.1 7.8 7.8 Total $ 31.8 $ 31.2 $ 31.2 (1) Signet’s preferred shares dividends results in the dividend payment date being a quarter in arrears from the declaration date. As a result, as of January 30, 2021 and February 1, 2020, $8.1 million and $7.8 million, respectively, has been recorded in accrued expenses and other current liabilities in the consolidated balance sheets reflecting the dividends on preferred shares declared for the fourth quarter of Fiscal 2021 and Fiscal 2020. As disclosed in Note 7, the Fiscal 2021 dividends were paid “in-kind”. There were no cumulative undeclared dividends on the preferred shares that reduced net income attributable to common shareholders during Fiscal 2021. In addition, deemed dividends of $1.7 million related to accretion of issuance costs associated with the preferred shares were recognized in Fiscal 2021, Fiscal 2020 and Fiscal 2019. |
Earnings (loss) per common shar
Earnings (loss) per common share ("EPS") | 12 Months Ended |
Jan. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings per common share (EPS) | Earnings (loss) per common share (“EPS”) Basic EPS is computed by dividing net income attributable to common shareholders by the weighted average number of common shares outstanding for the period. The computation of basic EPS is outlined in the table below: (in millions, except per share amounts) Fiscal 2021 Fiscal 2020 Fiscal 2019 Numerator: Net income (loss) attributable to common shareholders $ (48.7) $ 72.6 $ (690.3) Denominator: Weighted average common shares outstanding 52.0 51.7 54.7 EPS – basic $ (0.94) $ 1.40 $ (12.62) The dilutive effect of share awards represents the potential impact of outstanding awards issued under the Company’s share-based compensation plans, including restricted shares, restricted stock units and stock options issued under the Omnibus Plan and stock options issued under the Share Saving Plans. The dilutive effect of preferred shares represents the potential impact for common shares that would be issued upon conversion. Potential common share dilution related to share awards and preferred shares is determined using the treasury stock and if-converted methods, respectively. Under the if-converted method, the preferred shares are assumed to be converted at the beginning of the period, and the resulting common shares are included in the denominator of the diluted EPS calculation for the entire period being presented, only in the periods in which such effect is dilutive. Additionally, in periods in which preferred shares are dilutive, cumulative dividends and accretion for issuance costs associated with the preferred shares are added back to net income (loss) attributable to common shareholders. See Note 7 for additional discussion of the Company’s preferred shares. The computation of diluted EPS is outlined in the table below: (in millions, except per share amounts) Fiscal 2021 Fiscal 2020 Fiscal 2019 Numerator: Net income (loss) attributable to common shareholders $ (48.7) $ 72.6 $ (690.3) Numerator for diluted EPS $ (48.7) $ 72.6 $ (690.3) Denominator: Weighted average common shares outstanding 52.0 51.7 54.7 Plus: Dilutive effect of share awards — 0.1 — Diluted weighted average common shares outstanding 52.0 51.8 54.7 EPS – diluted $ (0.94) $ 1.40 $ (12.62) The calculation of diluted EPS excludes the following items for each respective period on the basis that their effect would be anti-dilutive. (in millions) Fiscal 2021 Fiscal 2020 Fiscal 2019 Share awards 1.8 0.9 1.1 Potential impact of preferred shares 7.8 7.6 7.1 Total anti-dilutive shares 9.6 8.5 8.2 |
Accumulated other comprehensive
Accumulated other comprehensive income (loss) | 12 Months Ended |
Jan. 30, 2021 | |
Equity [Abstract] | |
Accumulated other comprehensive income (loss) | Accumulated other comprehensive income (loss) The following tables present the changes in AOCI by component and the reclassifications out of AOCI, net of tax: Pension plan (in millions) Foreign Gain (losses) on available-for-sale securities, net Gains (losses) Actuarial Prior Accumulated Balance at February 3, 2018 $ (212.5) $ (0.1) $ 0.7 $ (51.1) $ 2.4 $ (260.6) OCI before reclassifications (35.9) 0.4 4.8 (3.4) (6.5) (40.6) Amounts reclassified from AOCI to net income — — (1.5) 0.7 — (0.8) Impacts from adoption of new accounting pronouncements (1) — (0.8) — 0.0 — (0.8) Net current period OCI (35.9) (0.4) 3.3 (2.7) (6.5) (42.2) Balance at February 2, 2019 $ (248.4) $ (0.5) $ 4.0 $ (53.8) $ (4.1) $ (302.8) OCI before reclassifications (1.7) (0.2) 11.2 0.4 — 9.7 Amounts reclassified from AOCI to net income — 1.0 (2.7) 1.0 — (0.7) Net current period OCI (1.7) 0.8 8.5 1.4 — 9.0 Balance at February 1, 2020 $ (250.1) $ 0.3 $ 12.5 $ (52.4) $ (4.1) $ (293.8) OCI before reclassifications 11.2 0.2 (0.8) 4.4 — 15.0 Amounts reclassified from AOCI to net income — — (12.6) 0.8 0.1 (11.7) Net current period OCI 11.2 0.2 (13.4) 5.2 0.1 3.3 Balance at January 30, 2021 $ (238.9) $ 0.5 $ (0.9) $ (47.2) $ (4.0) $ (290.5) (1) Adjustment reflects the reclassification of unrealized gains related to the Company’s available-for-sale equity securities as of February 3, 2018 from AOCI into retained earnings associated with the adoption of ASU 2016-01. The amounts reclassified from AOCI were as follows: Amounts reclassified from AOCI (in millions) Fiscal 2021 Fiscal 2020 Fiscal 2019 Statement of operations caption Losses (gains) on cash flow hedges: Foreign currency contracts $ — $ (1.1) $ 0.7 Cost of sales (1) De-designated foreign currency contracts (0.6) — — Other operating income (loss) (2) Interest rate swaps — (0.6) (1.9) Interest expense, net (1) Commodity contracts (6.9) (1.7) (0.9) Cost of sales (1) De-designated commodity contracts (9.3) — — Other operating income (loss) (2) Total before income tax (16.8) (3.4) (2.1) Income taxes 4.2 0.7 0.6 Net of tax (12.6) (2.7) (1.5) Defined benefit pension plan items: Amortization of unrecognized actuarial losses 1.0 1.2 0.9 Other non-operating income, net (3) Amortization of unrecognized net prior service credits 0.1 — — Other non-operating income, net (3) Total before income tax 1.1 1.2 0.9 Income taxes (0.2) (0.2) (0.2) Net of tax 0.9 1.0 0.7 Available-for-sale securities: Corporate equity securities, before income tax — 1.0 — Other operating income (loss) (4) Income taxes — — — Net of tax — 1.0 — Total reclassifications, net of tax $ (11.7) $ (0.7) $ (0.8) (1) See Note 20 for additional information. (2) The Company’s cash flow hedges were dedesignated during the first quarter of Fiscal 2021. See Note 20 for additional information. (3) These items are included in the computation of net periodic pension benefit (cost). See Note 22 for additional information. (4) See Note 19 for additional information. |
Income taxes
Income taxes | 12 Months Ended |
Jan. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes (in millions) Fiscal 2021 Fiscal 2020 Fiscal 2019 Income (loss) before income taxes: – US $ (173.4) $ 32.3 $ (1,135.8) – Foreign 83.7 97.4 333.2 Total income (loss) before income taxes $ (89.7) $ 129.7 $ (802.6) Current taxation: – US $ (222.2) $ 3.0 $ (55.2) – Foreign 0.7 1.9 15.8 Deferred taxation: – US 158.4 17.0 (85.8) – Foreign (11.4) 2.3 (20.0) Total income tax expense (benefit) $ (74.5) $ 24.2 $ (145.2) As the statutory rate of corporation tax in Bermuda is 0%, the differences between the US federal income tax rate and the effective tax rates for Signet have been presented below: Fiscal 2021 Fiscal 2020 Fiscal 2019 US federal income tax rates 21.0 % 21.0 % 21.0 % US state income taxes 4.1 % 3.1 % 2.3 % Differences between US federal and foreign statutory income tax rates 0.1 % 1.3 % 0.3 % Expenditures permanently disallowable for tax purposes, net of permanent tax benefits (4.7) % 3.3 % (0.8) % Impact of global reinsurance arrangements 14.1 % (20.3) % 3.1 % Impact of global financing arrangements — % — % 4.2 % Impairment of goodwill (2.4) % 7.5 % (13.4) % Out of period adjustment — % — % 1.4 % CARES Act 111.9 % — % — % Valuation allowance (55.5) % — % — % Other items (5.5) % 2.8 % — % Effective tax rate 83.1 % 18.7 % 18.1 % In Fiscal 2021, Signet’s effective tax rate was higher than the US federal income tax rate primarily due to the benefit from the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) enacted on March 27, 2020, and the impact of Signet’s global reinsurance arrangement partially offset by the unfavorable impact of a valuation allowance recorded against certain state deferred tax assets and the impairment of goodwill which was nondeductible for tax purposes. The CARES Act provides a technical correction to the Tax Cuts and Jobs Act (TCJA) allowing fiscal year tax filers with federal net operating losses arising in the 2017/2018 tax year to be carried back two years to tax years that had a higher enacted tax rates resulting in a tax benefit of $74.0 million. The CARES Act also provides for net operating losses incurred in Fiscal 2021 to be carried back five years to tax years with higher enacted tax rates resulting in an anticipated tax benefit of $26.4 million. In addition, during Fiscal 2021, based on weighing all positive and negative evidence, management determined it was more likely than not that it would not be able to realize certain state deferred tax assets primarily related to state deferred tax assets including state net operating losses and recorded a valuation allowance of $50.0 million. Deferred taxes Deferred tax assets (liabilities) consisted of the following: January 30, 2021 February 1, 2020 (in millions) Assets (Liabilities) Total Assets (Liabilities) Total Intangible assets $ — $ (41.7) $ (41.7) $ — $ (63.0) $ (63.0) US property, plant and equipment — (55.3) (55.3) — (55.4) (55.4) Foreign property, plant and equipment 7.3 — 7.3 6.5 — 6.5 Inventory valuation — (230.4) (230.4) — (203.1) (203.1) Revenue deferral 95.6 — 95.6 102.5 — 102.5 Derivative instruments 0.3 — 0.3 — (4.3) (4.3) Lease assets — (295.1) (295.1) — (358.2) (358.2) Lease liabilities 331.5 — 331.5 380.6 — 380.6 Deferred compensation 6.7 — 6.7 7.3 — 7.3 Retirement benefit obligations — (9.8) (9.8) — (6.7) (6.7) Share-based compensation 4.4 — 4.4 4.1 — 4.1 Other temporary differences 57.2 — 57.2 77.7 — 77.7 Net operating losses and foreign tax credits 56.5 — 56.5 137.0 — 137.0 Value of capital losses 13.9 — 13.9 12.9 — 12.9 Total gross deferred tax assets (liabilities) $ 573.4 $ (632.3) $ (58.9) $ 728.6 $ (690.7) $ 37.9 Valuation allowance (83.9) — (83.9) (38.4) — (38.4) Deferred tax assets (liabilities) $ 489.5 $ (632.3) $ (142.8) $ 690.2 $ (690.7) $ (0.5) Disclosed as: Non-current assets $ 16.4 $ 4.7 Non-current liabilities (159.2) (5.2) Deferred tax assets (liabilities) $ (142.8) $ (0.5) As of January 30, 2021, Signet had deferred tax assets associated with net operating loss carry forwards of $29.5 million, of which $11.5 million are subject to ownership change limitations rules under Section 382 of the Internal Revenue Code (“IRC”) and various US state regulations and expire between 2020 and 2039. Deferred tax assets associated with foreign tax credits also subject to Section 382 of the IRC total $8.7 million as of January 30, 2021, which expire between 2021 and 2024 and foreign net operating loss carryforwards of $18.3 million, which expire between 2021 and 2040. Additionally, Signet had foreign capital loss carryforward deferred tax assets of $11.2 million (Fiscal 2020: $10.5 million), which can be carried forward over an indefinite period and US capital loss carryforwards of $2.7 million which expire in 2022, both of which are only available to offset future capital gains. The increase in the total valuation allowance in Fiscal 2021 was $45.5 million. The valuation allowance primarily relates to state deferred tax assets including state net operating losses, foreign tax credits, capital and foreign operating loss carry forwards that, in the judgment of management, are not more likely than not to be realized. Signet believes that it is more likely than not that deferred tax assets not subject to a valuation allowance as of January 30, 2021 will be offset where permissible by deferred tax liabilities or realized on future tax returns, primarily from the generation of future taxable income. Uncertain tax positions The following table summarizes the activity related to the Company’s unrecognized tax benefits for US federal, US state and non-US tax jurisdictions: (in millions) Fiscal 2021 Fiscal 2020 Fiscal 2019 Unrecognized tax benefits, beginning of period $ 23.5 $ 18.1 $ 12.0 Increases related to current year tax positions 1.0 2.0 2.5 Increases related to prior year tax positions 3.4 6.0 6.2 Lapse of statute of limitations (2.6) (2.6) (2.4) Difference on foreign currency translation 0.1 — (0.2) Unrecognized tax benefits, end of period $ 25.4 $ 23.5 $ 18.1 As of January 30, 2021, Signet had approximately $25.4 million of unrecognized tax benefits in respect to uncertain tax positions. The unrecognized tax benefits relate primarily to intercompany deductions including financing arrangements and intra-group charges which are subject to different and changing interpretations of tax law. Signet recognizes accrued interest and, where appropriate, penalties related to unrecognized tax benefits within income tax expense (benefit) in the consolidated statements of operations. As of January 30, 2021, Signet had accrued interest of $4.1 million and $0.6 million of accrued penalties. If all of these unrecognized tax benefits were settled in Signet’s favor, the effective income tax rate would be favorably impacted by $23.3 million. Over the next twelve months management believes that it is reasonably possible that there could be a reduction of some or all of the unrecognized tax benefits as of January 30, 2021 due to settlement of the uncertain tax positions with the tax authorities. Signet has business activity in all states within the US and files income tax returns for the US federal jurisdiction and all applicable states. Signet also files income tax returns in the UK, Canada and certain other foreign jurisdictions. Signet is subject to examinations by the US federal and state and Canadian tax authorities for tax years ending after November 1, 2011 and is subject to examination by the UK tax authority for tax years ending after February 1, 2014. |
Other operating income (loss)
Other operating income (loss) | 12 Months Ended |
Jan. 30, 2021 | |
Other Income and Expenses [Abstract] | |
Other operating income (loss) | Other operating income (loss) (in millions) Fiscal 2021 Fiscal 2020 Fiscal 2019 Interest income from customer in-house finance receivables (1) $ 4.2 $ — $ 22.8 Shareholder litigation charges, net of insurance recoveries (2) (7.5) (33.2) — De-designated cash flow hedges (3) 9.9 — — Other (4.2) 3.6 3.4 Other operating income (loss) $ 2.4 $ (29.6) $ 26.2 (1) See Note 4 and Note 13 for additional information. (2) See Note 27 for additional information. (3) See Note 20 for additional information. |
Accounts receivable, net
Accounts receivable, net | 12 Months Ended |
Jan. 30, 2021 | |
Receivables [Abstract] | |
Accounts receivable, net | Credit transaction, net During the fiscal year ended February 3, 2018, Signet announced a strategic initiative to outsource its North America private label credit card programs and sell the existing in-house finance receivables. In October 2017, Signet, through its subsidiary Sterling Jewelers Inc (“Sterling”), completed the sale of the prime-only credit quality portion of Sterling’s in-house finance receivable portfolio to Comenity Bank (“Comenity”). The Company had previously entered into an agreement with Comenity to provide credit services to its Zales banners for all credit card customers (prime and non-prime), and this pre-existing Zales arrangement with Comenity was unaffected by the execution of the Sterling agreement. The Zales agreement expires in January 2023, and the Sterling agreement expires in October 2024. Under the program agreements, Comenity established a program to issue credit cards to be serviced, marketed and promoted in accordance with the terms of the respective agreement. Subject to limited exceptions, Comenity is the exclusive issuer of private label credit cards or an installment or other closed end loan product in the United States bearing specified Company trademarks during the term of the agreements. Upon expiration or termination by either party of the agreements, the Company retains the option to purchase, or arrange the purchase by a third party of, the program assets from Comenity on terms that are no more onerous to the Company than those applicable to Comenity under the agreements, or in the case of a purchase by a third party, on customary terms. The program agreements contain customary representations, warranties and covenants. In addition to the prime-only credit card portfolio, the Company also entered into various agreements to outsource the non-prime portion of its private label credit card program for Sterling and sell the existing in-house financing receivables. Below is a summary of these transactions related to the non-prime portfolio: Fiscal 2019 non-prime transaction During March 2018, the Company, through its subsidiary Sterling, entered into a definitive agreement with CarVal Investors (“CarVal”) to sell all eligible non-prime in-house accounts receivable. In May 2018, the Company exercised its option to appoint a minority party, Castlelake, L.P. (“Castlelake”), to purchase 30% of the eligible receivables sold to CarVal under the Receivables Purchase Agreement. In June 2018, the Company completed the sale of the non-prime in-house accounts receivable at a price expressed as 72% of the par value of the accounts receivable. The purchase price was settled with 95% received as cash upon closing. The remaining 5% of the purchase price was deferred until the second anniversary of the closing date. Final payment of the deferred purchase price was contingent upon the non-prime in-house finance receivable portfolio achieving a pre-defined yield, which was finalized in Fiscal 2021 (see below). The agreement contains customary representations, warranties and covenants. Receivables reclassification: In March 2018, the eligible non-prime in-house accounts receivables that met the criteria for sale were reclassified from "held for investment" to "held for sale" on the consolidated balance sheet. Accordingly, the receivables were recorded at the lower of cost (par) or fair value as of the date of the reclassification with subsequent adjustments to the asset fair value as required through the closing date of the transaction. During Fiscal 2019, total valuation losses of $160.4 million were recorded within credit transaction, net in the consolidated statement of operations. Proceeds received: In June 2018, the Company received $445.5 million in cash consideration for the receivables sold based on the terms of the agreements with CarVal and Castlelake described above. The Company also recorded a receivable related to the deferred purchase price payment within other assets and will adjust the asset to fair value in each period of the performance period. See Note 21 for additional information regarding the fair value of deferred purchase price. Expenses: During Fiscal 2019, the Company incurred $7.0 million of transaction-related costs, which were recorded within credit transaction, net in the consolidated statement of operations. In addition, for a five-year term, Signet will remain the issuer of non-prime credit with investment funds managed by CarVal and Castlelake purchasing forward receivables at a discount rate determined in accordance with their respective agreements. Signet will hold the newly issued non-prime credit receivables on its balance sheet for two business days prior to selling the receivables to the respective counterparty in accordance with the agreements. Servicing of the non-prime receivables, including operational interfaces and customer servicing, will continue to be provided by Genesis Financial Solutions (“Genesis”) under the five-year agreement entered into with the Company in October 2017. Fiscal 2021 non-prime agreements During Fiscal 2021, the 2018 agreements pertaining to the purchase of forward flow receivables were terminated and new agreements were executed with CarVal and Castlelake which are effective until June 2021. Historically, non-prime receivables represent approximately 7% of Signet’s consolidated revenue on an annual basis. The new agreements provide that CarVal and Castlelake will continue to purchase add-on non-prime receivables created on existing customer accounts at a discount rate determined in accordance with the new agreements. As a result of the above agreements, Signet began retaining forward flow non-prime receivables created for new customers, which ultimately represented approximately 2% of Signet’s Fiscal 2021 revenue. The termination of the previous agreements has no effect on the receivables that were previously sold to CarVal and Castlelake prior to the termination, except that Signet agreed to extend the parties’ payment obligation for the remaining 5% of the receivables previously purchased in June 2018 until the new agreements terminate. The Company’s agreement with the credit servicer Genesis remains in place. During the fourth quarter of Fiscal 2021, the Company reached additional agreements with the Investors (as described in Note 13) to further amend the purchase agreements described above. CarVal will continue to purchase add-on receivables for existing accounts and will purchase 50% of new forward flow non-prime receivables through June 30, 2021. Genesis will purchase the remaining 50% of new forward flow non-prime receivables through June 30, 2021. Castlelake will not purchase any new forward flow non-prime receivables but will continue to purchase add-on receivables for existing accounts through June 30, 2021. Signet will continue to retain add-ons receivables for existing accounts. The following table presents the components of Signet’s accounts receivable: (in millions) January 30, 2021 February 1, 2020 Customer in-house finance receivables, net $ 72.0 $ — Accounts receivable, trade 11.6 34.4 Accounts receivable, held for sale 5.1 4.4 Accounts receivable, net $ 88.7 $ 38.8 As further discussed in Note 4, during the fiscal year ended February 3, 2018, Signet announced a strategic initiative to outsource its North America private label credit card programs. Non-prime in-house finance receivables not maintained by the Company are sold to CarVal, Castlelake, and Genesis (collectively, the “Investors”). Receivables issued by the Company but pending transfer to the Investors as of period end are classified as “held for sale” and included in accounts receivable, net, in the consolidated balance sheets. These accounts receivable held for sale are recorded at fair value. Accounts receivable, trade, includes amounts receivable relating to the insurance loss replacement business in the International segment and accounts receivable from our diamond sourcing initiative in the Other segment. Customer in-house finance receivables As discussed in Note 4, the Company began to retain certain customer in-house finance receivables in the second quarter of Fiscal 2021. The allowance for credit losses is an estimate of expected credit losses, measured over the estimated life of its credit card receivables that considers forecasts of future economic conditions in addition to information about past events and current conditions. The Company accounts for the expected credit losses under ASC 326, “Measurement of Credit Losses on Financial Instruments,” which is referred to as the Current Expected Credit Loss (“CECL”) model. The estimate under the CECL model is significantly influenced by the composition, characteristics and quality of the Company’s portfolio of credit card receivables, as well as the prevailing economic conditions and forecasts utilized. The estimate of the allowance for credit losses includes an estimate for uncollectible principal as well as unpaid interest and fees. The allowance is maintained through an adjustment to the provision for credit losses and is evaluated for appropriateness and adjusted quarterly. CECL requires entities to use a “pooled” approach to estimate expected credit losses for financial assets with similar risk characteristics. The Company evaluated multiple risk characteristics of its credit card receivables portfolio and determined that credit quality and account vintage to be the most significant characteristics for estimating expected credit losses. To estimate its allowance for credit losses, the Company segregates its credit card receivables into credit quality categories using the customers’ FICO scores. The following three industry standard FICO score categories are used: • 620 to 659 (“Near Prime”) • 580 to 619 (“Subprime”) • Less than 580 (“Deep Subprime”) These risk characteristics are evaluated on at least an annual basis, or more frequently as facts and circumstances warrant. The expected loss rates are adjusted on a quarterly basis based on historical loss trends and are risk-adjusted for current and future economic conditions and events. As summarized in the table below, based on the changes in the agreements with the Investors in Fiscal 2021, there is currently one vintage year since the Company began maintaining new accounts. The following table disaggregates the Company’s customer in-house finance receivables by credit quality and vintage year as of January 30, 2021: (in millions) Year of origination Credit quality Fiscal 2021 Near Prime $ 46.6 Subprime 38.9 Deep Subprime 12.0 Total at amortized cost $ 97.5 In estimating its allowance for credit losses, for each identified risk category, management utilized estimation methods based primarily on historical loss experience, current conditions, and other relevant factors. These methods utilize historical charge-off data of the Company’s non-prime portfolio, as well as incorporate any applicable macroeconomic variables (such as unemployment) that may be expected to impact credit performance. In addition to the quantitative estimate of expected credit losses under CECL using the historical loss information, the Company also incorporates qualitative adjustments for certain factors such as Company specific risks, changes in current economic conditions that may not be captured in the quantitatively derived results, or other relevant factors to ensure the allowance for credit losses reflects the Company’s best estimate of current expected credit losses. Management considered qualitative factors such as the unfavorable macroeconomic conditions caused by the COVID-19 uncertainty (including rates of unemployment), the Company’s non-prime portfolio performance during the prior recession, and the potential impacts of the economic stimulus packages in the US, in developing its estimate for current expected credit losses for the current period. The following table is a rollforward of the Company’s allowance for credit losses on customer in-house finance receivables: (in millions) Fiscal 2021 Beginning balance $ — Provision for credit losses 26.1 Write-offs (0.6) Recoveries — Ending balance $ 25.5 Beginning in the second quarter, in connection with the new agreements executed with the Investors, additions to the allowance for credit losses are made by recording charges to bad debt expense (credit losses) within selling, general and administrative expenses within the consolidated statements of operations. The uncollectible portion of customer in-house finance receivables are charged to the allowance for credit losses when an account is written-off after 180 days of non-payment, or in circumstances such as bankrupt or deceased cardholders. Write-offs on customer in-house finance receivables include uncollected amounts related to principal, interest, and late fees. Uncollectible accrued interest is accounted for by recognizing credit loss expense. Recoveries on customer in-house finance receivables previously written-off as uncollectible are credited to the allowance for credit losses. A credit card account is contractually past due if the Company does not receive the minimum payment by the specified due date on the cardholder’s statement. It is the Company’s policy to continue to accrue interest and fee income on all credit card accounts, except in limited circumstances, until the credit card account balance and all related interest and other fees are paid or charged-off, typically at 180 days delinquent, as noted above. The following table disaggregates the Company’s customer in-house finance receivables by past due status as of January 30, 2021: (in millions) Current $ 81.3 1 - 30 days past due 9.1 31 - 60 days past due 2.6 61 - 90 days past due 1.7 Greater than 90 days past due 2.8 Total at amortized cost $ 97.5 Prior to completion of the Credit Transaction, the activity in Fiscal 2019 related to the allowance for credit losses on Sterling customer in-house finance receivables is shown below. There was no activity in Fiscal 2020 as the completion of the sale of in-house finance receivables occurred in June 2018. (in millions) Fiscal 2019 Beginning balance $ 113.5 Charge-offs, net (56.3) Recoveries (4.2) Provision 54.6 Reversal of allowance on receivables sold (107.6) Ending balance $ — |
Inventories
Inventories | 12 Months Ended |
Jan. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The following table summarizes the details of the Company’s inventory: (in millions) January 30, 2021 February 1, 2020 Raw materials $ 45.3 $ 56.2 Finished goods 1,987.2 2,275.5 Total inventories $ 2,032.5 $ 2,331.7 Signet held $387.4 million of consignment inventory at January 30, 2021 (February 1, 2020: $625.7 million), which is not recorded on the consolidated balance sheets. The principal terms of the consignment agreements, which can generally be terminated by either party, are such that Signet can return any or all of the inventory to the relevant suppliers without financial or commercial penalties and the supplier can adjust the inventory prices prior to sale. Inventory reserves (in millions) Fiscal 2021 Fiscal 2020 Fiscal 2019 Inventory reserve, beginning of period $ 67.0 $ 95.3 $ 40.6 Charged to income (1) 78.1 80.2 131.4 Utilization (2) (92.2) (108.5) (76.7) Inventory reserve, end of period (3) $ 52.9 $ 67.0 $ 95.3 (1) Includes $1.4 million in Fiscal 2021, $9.2 million in Fiscal 2020, and $62.2 million in Fiscal 2019 for inventory charges associated with the Company’s restructuring plan. The charges were primarily associated with discontinued brands and collections within the restructuring - cost of sales line item on the consolidated statements of operations. See Note 6 for additional information. (2) Includes the impact of foreign exchange translation between opening and closing balance sheet dates, as well as $20.0 million in Fiscal 2021, $40.0 million in Fiscal 2020, and $10.6 million in Fiscal 2019 utilized for inventory identified as part of the Company’s restructuring plan. See Note 6 for additional information. (3) Includes $2.2 million for Fiscal 2021, $20.8 million in Fiscal 2020, and $51.6 million in Fiscal 2019 for inventory identified as part of the Company’s restructuring plan. See Note 6 for additional information. |
Property, plant and equipment,
Property, plant and equipment, net | 12 Months Ended |
Jan. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, plant and equipment, net | Property, plant and equipment, net (in millions) January 30, 2021 February 1, 2020 Land and buildings $ 21.8 $ 23.4 Leasehold improvements 616.9 640.7 Furniture and fixtures 669.9 601.2 Equipment 122.4 199.1 Software 334.2 246.9 Construction in progress 38.4 95.3 Total $ 1,803.6 $ 1,806.6 Accumulated depreciation and amortization (1,198.1) (1,064.7) Property, plant and equipment, net $ 605.5 $ 741.9 Depreciation and amortization expense for Fiscal 2021 was $175.1 million (Fiscal 2020: $177.1 million; Fiscal 2019: $179.6 million). In Fiscal 2021, the Company recorded $28.1 million of property and equipment impairment charges. See Note 16 for additional information. |
Asset Impairments
Asset Impairments | 12 Months Ended |
Jan. 30, 2021 | |
Asset Impairment Charges [Abstract] | |
Asset impairments | Asset impairments The following table summarizes the Company’s asset impairment activity for the periods presented: (in millions) Fiscal 2021 Fiscal 2020 Fiscal 2019 Goodwill impairment (1) $ 10.7 $ 47.7 $ 521.2 Indefinite-lived intangible asset impairment (1) 83.3 — 214.2 Property and equipment impairment 28.1 — — Operating lease ROU asset impairment (2) 36.9 — — Total impairment $ 159.0 $ 47.7 $ 735.4 (1) Refer to Note 18 for additional information. (2) The Company recorded $4.4 million of gains on terminations or modifications of leases resulting from previously recorded impairments of the right of use assets in Fiscal 2021. Long-lived assets of the Company consist primarily of property and equipment, definite-lived intangible assets and operating lease right-of-use (“ROU”) assets. Long-lived assets are reviewed for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. Potentially impaired assets or asset groups are identified by reviewing the undiscounted cash flows of individual stores. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the store asset group, based on the Company’s internal business plans. If the undiscounted cash flow for the store asset group is less than its carrying amount, the long-lived assets are measured for potential impairment by estimating the fair value of the asset group, and recording an impairment loss for the amount that the carrying value exceeds the estimated fair value. The Company utilizes primarily the replacement cost method to estimate the fair value of its property and equipment, and the income capitalization method to estimate the fair value of its ROU assets, which incorporates historical store level sales, internal business plans, real estate market capitalization and rental rates, and discount rates. Due to the various impacts of COVID-19 to the Company’s business during the first quarter of Fiscal 2021, including the temporary closure of all the Company’s stores beginning in late March 2020 (see additional information in Note 1), the Company determined triggering events had occurred for certain of the Company’s long-lived asset groups at the individual stores that required an interim impairment assessment during the first quarter of Fiscal 2021. During the remaining of Fiscal 2021, the Company completed its quarterly trigger event assessment and determined that triggering events had occurred for certain additional long-lived asset groups at the individual stores based on real estate assessments (including store closure decisions) and the continued uncertainty related to COVID-19 on forecasted cash flows for the remaining lease period for certain stores. This impacted property and equipment and ROU assets at the store level. The Company identified certain stores in the initial recoverability test which had carrying values in excess of the estimated undiscounted cash flows. For these stores failing the initial recoverability test, a fair value assessment for these long-lived assets was performed. As a result of the above fair values assessments, the Company recorded impairment charges for property and equipment of $28.1 million and impairment charges for ROU assets of $36.9 million in Fiscal 2021, which is net of gains on terminations or modifications of leases resulting from previously recorded impairments of the right of use assets of $4.4 million. The uncertainty of the COVID-19 impact to the Company’s business could continue to further negatively affect the operating performance and cash flows of the above identified stores or additional stores, including the magnitude and potential resurgence of COVID-19, occupancy restrictions in the Company’s stores, the inability to achieve or maintain cost savings initiatives included in the business plans, or macroeconomic factors which influence consumer behavior. In addition, key assumptions used to estimate fair value, such as sales trends, capitalization and market rental rates, and discount rates could impact the fair value estimates of the store assets in future periods. |
Leases
Leases | 12 Months Ended |
Jan. 30, 2021 | |
Leases [Abstract] | |
Leases | Leases On February 3, 2019, the Company adopted ASU No. 2016-02 Leases (Topic 842) and related updates (“ASC 842”) using the optional transition method to recognize a cumulative-effect adjustment to the opening balance of retained earnings. The impact of the optional transition method was deemed immaterial upon adoption of ASC 842. As part of the adoption of ASC 842, the Company utilized the practical expedient relief package, as well as the short-term leases and portfolio approach practical expedients. ASC 842 allows a lessee, as an accounting policy election by class of underlying asset, to choose not to separate non-lease components from lease components and instead to account for each separate lease component and the non-lease components associated with that lease component as a single lease component. We have elected this practical expedient as presented in ASC 842, and do not separate non-lease components for all underlying asset classes. Financial results included in the Company’s consolidated financial statements for Fiscal 2021 and Fiscal 2020 are presented under ASC 842, while Fiscal 2019 is presented under the previous accounting standard, ASC 840. Signet occupies certain properties and holds machinery and vehicles under operating leases. Signet determines if an arrangement is a lease at the agreement’s inception. Certain operating leases include predetermined rent increases, which are charged to store occupancy costs within cost of sales on a straight-line basis over the lease term, including any construction period or other rental holiday. Other variable amounts paid under operating leases, such as taxes and common area maintenance, are charged to selling, general and administrative expenses as incurred. Premiums paid to acquire short-term leasehold properties and inducements to enter into a lease are recognized on a straight-line basis over the lease term. In addition, certain leases provide for contingent rent based on a percentage of sales in excess of a predetermined level. Further, certain leases provide for variable rent increases based on indexes specified within the lease agreement. The variable increases based on an index are initially measured as part of the operating lease liability using the index at the commencement date. Contingent rent and subsequent changes to variable increases based on indexes will be recognized in the variable lease cost and included in the determination of total lease cost when it is probable that the expense has been incurred and the amount is reasonably estimable. Operating leases are included in operating lease ROU assets and current and non-current operating lease liabilities in the Company’s consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate at the lease commencement date, based primarily on the underlying lease term, in measuring the present value of lease payments. Lease terms, which include the period of the lease that cannot be canceled, may also include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The operating lease ROU asset may also include initial direct costs, prepaid and/or accrued lease payments and the unamortized balance of lease incentives received. ROU assets are reviewed for impairment whenever events or circumstances indicate that the carrying amount of the assets may not be recoverable in accordance with the Company’s long-lived asset impairment assessment policy. Payments arising from operating lease activity, as well as variable and short-term lease payments not included within the operating lease liability, are included as operating activities on the Company’s consolidated statement of cash flows. Operating lease payments representing costs to ready an asset for its intended use (i.e. leasehold improvements) are represented within investing activities within the Company’s consolidated statements of cash flows. The Company deferred substantially all of its rent payments due in the months of April 2020 and May 2020. The Company began paying certain rents in June 2020 and all rents in July 2020. In total, the Company had approximately $82 million of rent payments originally due in Fiscal 2021 that have been deferred to beyond Fiscal 2021 (expected to paid by the end of the second quarter of Fiscal 2022). The Company has not recorded any provision for interest or penalties which may arise as a result of these deferrals, as management does not believe payment for any potential amounts to be probable. In April 2020, the FASB granted guidance (hereinafter, the practical expedient) permitting an entity to choose to forgo the evaluation of the enforceable rights and obligations of the original lease contract, specifically in situations where rent concessions have been agreed to with landlords as a result of COVID-19. Instead, the entity may account for COVID-19 related rent concessions, whatever their form (e.g. rent deferral, abatement or other) either: a) as if they were part of the enforceable rights and obligations of the parties under the existing lease contract; or b) as lease modifications. In accordance with this practical expedient, the Company has elected not to account for any concessions granted by landlords as a result of COVID-19 as lease modifications. Rent abatements under the practical expedient have been recorded as a negative variable lease cost. The Company has negotiated with substantially all of its landlords and has received certain concessions in the form of rent deferrals and other lease or rent modifications. In addition, the Company continued recording lease expense during the deferral period in accordance with its existing policies. The weighted average lease term and discount rate for the Company’s outstanding operating leases were as follows: January 30, 2021 February 1, 2020 Weighted average remaining lease term 6.2 years 6.7 years Weighted average discount rate 5.5 % 5.5 % Total lease costs are as follows: (in millions) Fiscal 2021 Fiscal 2020 Operating lease cost $ 436.3 460.3 Short-term lease cost 16.3 19.4 Variable lease cost 110.3 107.1 Sublease income (1.8) (2.0) Total lease cost $ 561.1 $ 584.8 Total rent expense as determined prior to the adoption of ASC 842 was as follows: (in millions) Fiscal 2019 Minimum rentals $ 510.3 Contingent rent 8.1 Sublease income (1.1) Total rent expense $ 517.3 Supplemental cash flow information related to leases was as follows: (in millions) Fiscal 2021 Fiscal 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 400.4 $ 467.7 Operating lease right-of-use assets obtained in exchange for lease obligations 70.8 149.9 Reduction in the carrying amount of ROU assets (1) 348.3 360.1 (1) Excludes impairment of ROU assets of $36.9 million during Fiscal 2021, as further described in Note 16 . The future minimum operating lease payments for operating leases having initial or non-cancelable terms in excess of one year are as follows: (in millions) January 30, 2021 Fiscal 2022 $ 503.9 Fiscal 2023 349.8 Fiscal 2024 275.3 Fiscal 2025 214.6 Fiscal 2026 157.2 Thereafter 396.7 Total minimum lease payments $ 1,897.5 Less: Imputed interest (372.9) Present value of lease liabilities $ 1,524.6 |
Goodwill and intangibles
Goodwill and intangibles | 12 Months Ended |
Jan. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and intangibles | Goodwill and intangibles Goodwill and other indefinite-lived intangible assets, such as indefinite-lived trade names, are evaluated for impairment annually and more frequently if events or conditions are identified indicating the carrying value of a reporting unit or an indefinite-lived intangible asset may not be recoverable. In evaluating goodwill and indefinite-lived trade names for impairment, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit or indefinite-lived intangible asset is less than its carrying value. If the Company concludes that it is not more likely than not that the fair value of a reporting unit or indefinite-lived intangible asset is less than its carrying value, then no further testing is required. However, if the Company concludes that it is more likely than not that the fair value of a reporting unit or indefinite-lived intangible asset is less than its carrying value, then a goodwill impairment test is performed to identify a potential impairment and measure the amount of impairment to be recognized, if any. When the carrying amount of the reporting unit or an indefinite-lived intangible assets exceeds its fair value, an impairment charge is recorded. The impairment test for goodwill involves estimating the fair value of the reporting unit through either estimated discounted future cash flows or market-based methodologies. The impairment test for other indefinite-lived intangible assets involves estimating the fair value of the asset, which is typically performed using the relief from royalty method for indefinite-lived trade names. Fiscal 2019 During Fiscal 2019, the Company performed its annual evaluation of its indefinite-lived intangible assets, including goodwill and trade names identified in the Zale and R2Net acquisitions, for impairment indicators. The Company noted that no impairment indicators existed at the date of the annual evaluation. Additionally, due to a sustained decline in the Company’s market capitalization during the first quarter of Fiscal 2019, the Company determined a triggering event had occurred that required an interim impairment assessment for all of its reporting units and indefinite-lived intangible assets. As part of the assessment, it was determined that an increase in the discount rate applied in the valuation was required to align with market-based assumptions and Company-specific risk. This higher discount rate, in conjunction with revised long-term projections associated with finalizing certain initial aspects of the Company’s Path to Brilliance transformation plan in the first quarter, resulted in lower than previously projected long-term future cash flows for the reporting units which negatively affected the valuation compared to previous valuations. Using a combination of discounted cash flow and guideline public company methodologies, the Company compared the fair value of each of its reporting units with their carrying value and concluded that a deficit existed. As a result of the interim impairment assessment, the Company recognized pre-tax impairment charges related to goodwill in the consolidated statement of operations of $308.8 million within its North America segment. Additionally, due to a second triggering event in the fourth quarter of Fiscal 2019 and using similar methodologies as the first quarter impairment assessment, the Company recognized additional pre-tax impairment charges related to goodwill, primarily R2Net goodwill, in the consolidated statement of operations of $208.8 million and $3.6 million within its North America and Other segments, respectively. In conjunction with the interim goodwill impairment tests noted above, during the first quarter of Fiscal 2019 the Company determined that the fair values of indefinite-lived intangible assets related to certain Zales trade names were less than their carrying value. Accordingly, in the first quarter, the Company recognized pre-tax impairment charges related to its indefinite-lived intangible assets in the consolidated statement of operations of $139.9 million within its North America segment. Additionally, in conjunction with the interim goodwill impairment tests associated with the second triggering event in the fourth quarter of Fiscal 2019, the Company determined that the fair values of indefinite-lived intangible assets related to trade names, primarily James Allen, were less than their carrying value. Accordingly, in the fourth quarter of Fiscal 2019, the Company recognized pre-tax impairment charges related to indefinite-lived intangible assets in the consolidated statement of operations of $74.3 million within its North America segment. Fiscal 2020 During Fiscal 2020, the Company performed its annual evaluation of its indefinite-lived intangible assets, including goodwill and trade names identified in the Zales and R2Net acquisition, for impairment indicators. The Company noted that no impairment indicators existed at the date of the annual evaluation. Additionally, due to a continued decline in the Company’s market capitalization during the second quarter of Fiscal 2020, the Company determined a triggering event had occurred requiring interim impairment assessments for its remaining reporting units with goodwill and indefinite-lived intangible assets. Using methodologies similar to the assessments performed in Fiscal 2019 described above, the Company determined no additional impairment charges were required to be recognized during Fiscal 2020 related to the annual evaluation or interim assessment. During the second quarter of Fiscal 2020, a non-cash immaterial out-of-period adjustment of $47.7 million, with $35.2 million related to Zales goodwill and $12.5 million related to R2Net goodwill, was recognized within Goodwill and intangible impairments on the consolidated statements of operations related to an error in the calculation of goodwill impairments during Fiscal 2019. Fiscal 2021 During Fiscal 2021, the Company performed its annual evaluation of its indefinite-lived intangible assets, including goodwill and trade names identified in the Zales and R2Net acquisitions, for impairment indicators. The Company noted that no impairment indicators existed at the date of the annual evaluation. Additionally, due to various impacts of COVID-19 to the Company’s business during the first quarter Fiscal 2021, the Company determined a triggering event had occurred that required an interim impairment assessment for all of its reporting units and indefinite-lived intangible assets. As part of the assessment, it was determined that an increase in the discount rates were required to reflect the prevailing uncertainty inherent in the forecasts due to current market conditions and potential COVID-19 impacts. This higher discount rate, in conjunction with revised long-term projections associated with certain aspects of the Company’s forecast, resulted in lower than previously projected long-term future cash flows for the reporting units and indefinite-lived intangible assets which negatively affected the valuation compared to previous valuations. As a result of the interim impairment assessment, during the first quarter of Fiscal 2021 the Company recognized pre-tax impairment charges related to goodwill of $10.7 million in the consolidated statement of operations within its North America segment related to R2Net and Zales Canada goodwill. In conjunction with the interim goodwill impairment tests noted above, during the first quarter of Fiscal 2021 the Company determined that the fair values of indefinite-lived intangible assets related to certain Zales trade names were less than their carrying value. Accordingly, in the first quarter of Fiscal 2021, the Company recognized pre-tax impairment charges within asset impairments on the consolidated statements of operations of $83.3 million within its North America segment. The Company will continue to monitor the share price of the Company’s stock, as well as key business metrics and inputs used to estimate fair value, such as sales trends and interest rates. In addition, as a result of the impairment of goodwill and trade names during the first quarter of Fiscal 2020, goodwill of $69.3 million associated with the R2Net acquisition and the Company’s trade names within the North America segment continue to approximate their respective fair values and could be at risk for future impairments should there be negative business or economic change in future periods. Goodwill The following table summarizes the Company’s goodwill by reportable segment: (in millions) North Balance at February 2, 2019 $ 296.6 Impairment (47.7) Impact of foreign exchange and other adjustments (0.1) Balance at February 1, 2020 $ 248.8 Impairment (10.7) Impact of foreign exchange (0.1) Balance at January 30, 2021 $ 238.0 Intangibles Definite-lived intangible assets include trade names and favorable lease agreements. All indefinite-lived intangible assets consist of trade names. Both definite and indefinite-lived assets are recorded within intangible assets, net on the consolidated balance sheets. Intangible liabilities, net is comprised of unfavorable contracts and is recorded within accrued expense and other current liabilities and other liabilities on the consolidated balance sheets. The following table provides additional detail regarding the composition of intangible assets and liabilities: January 30, 2021 February 1, 2020 (in millions) Gross Accumulated Accumulated impairment loss Net Gross Accumulated Accumulated impairment loss Net Intangible assets, net: Definite-lived intangible assets $ 53.6 $ (52.2) $ — $ 1.4 $ 53.2 $ (50.9) $ — $ 2.3 Indefinite-lived intangible assets 476.8 $ — (299.2) 177.6 475.4 $ — (213.9) 261.5 Total intangible assets, net $ 530.4 $ (52.2) $ (299.2) $ 179.0 $ 528.6 $ (50.9) $ (213.9) $ 263.8 Intangible liabilities, net $ (114.2) $ 103.7 $ — $ (10.5) $ (113.9) $ 98.0 $ — $ (15.9) Amortization expense relating to intangible assets was $0.9 million in Fiscal 2021 (Fiscal 2020: $0.9 million; Fiscal 2019: $4.0 million). The unfavorable contracts are classified as liabilities and recognized over the term of the underlying contract. Amortization relating to intangible liabilities was $5.4 million in Fiscal 2021 (Fiscal 2020: $5.5 million; Fiscal 2019: $7.9 million). Expected future amortization for intangible assets and future amortization for intangible liabilities recorded at January 30, 2021 follows: (in millions) Intangible assets, net amortization Intangible liabilities amortization Fiscal 2022 $ 0.8 $ (5.4) Fiscal 2023 0.6 (5.1) Total $ 1.4 $ (10.5) |
Investments
Investments | 12 Months Ended |
Jan. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Investments in debt and equity securities are held by certain insurance subsidiaries and are reported at fair value as other assets in the accompanying consolidated balance sheets. All investments are classified as available-for-sale and include the following: January 30, 2021 February 1, 2020 (in millions) Cost Unrealized Gain (Loss) Fair Value Cost Unrealized Gain (Loss) Fair Value US Treasury securities $ 5.6 $ 0.1 $ 5.7 $ 7.2 $ — $ 7.2 US government agency securities 3.1 0.1 3.2 4.6 0.1 4.7 Corporate bonds and notes 6.2 0.3 6.5 8.3 0.2 8.5 Total investments $ 14.9 $ 0.5 $ 15.4 $ 20.1 $ 0.3 $ 20.4 Realized gains and losses on investments are determined on the specific identification basis. Net realized gains of $1.0 million were recognized during Fiscal 2020. There were no material net realized gains or losses during Fiscal 2021 or Fiscal 2019. Investments with a carrying value of $3.4 million and $3.7 million were on deposit with various state insurance departments at January 30, 2021 and February 1, 2020, respectively, as required by law. Investments in debt securities outstanding as of January 30, 2021 mature as follows: (in millions) Cost Fair Value Less than one year $ 3.9 $ 3.9 Year two through year five 11.0 11.5 Total investment in debt securities $ 14.9 $ 15.4 |
Derivatives
Derivatives | 12 Months Ended |
Jan. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives Derivative transactions are used by Signet for risk management purposes to address risks inherent in Signet’s business operations and sources of financing. The main risks arising from Signet’s operations are market risk including foreign currency risk, commodity risk, liquidity risk and interest rate risk. Signet uses derivative financial instruments to manage and mitigate certain of these risks under policies reviewed and approved by the Board of Directors. Signet does not enter into derivative transactions for speculative purposes. Market risk Signet generates revenues and incurs expenses in US dollars, Canadian dollars and British pounds. As a portion of the International segment purchases and purchases made by the Canadian operations of the North America segment are denominated in US dollars, Signet enters into forward foreign currency exchange contracts, foreign currency option contracts and foreign currency swaps to manage this exposure to the US dollar. Signet holds a fluctuating amount of British pounds and Canadian dollars reflecting the cash generative characteristics of operations. Signet’s objective is to minimize net foreign exchange exposure to the consolidated statement of operations on non-US dollar denominated items through managing cash levels, non-US dollar denominated intra-entity balances and foreign currency swaps. In order to manage the foreign exchange exposure and minimize the level of funds denominated in British pounds and Canadian dollars, dividends are paid regularly by subsidiaries to their immediate holding companies and excess British pounds and Canadian dollars are sold in exchange for US dollars. Signet’s policy is to reduce the impact of precious metal commodity price volatility on operating results through the use of outright forward purchases of, or by entering into options to purchase, precious metals within treasury guidelines approved by the Board of Directors. In particular, Signet undertakes some hedging of its requirements for gold through the use of forward purchase contracts, options and net zero premium collar arrangements (a combination of forwards and option contracts). Liquidity risk Signet’s objective is to ensure that it has access to, or the ability to generate, sufficient cash from either internal or external sources in a timely and cost-effective manner to meet its commitments as they become due and payable. Signet manages liquidity risks as part of its overall risk management policy. Management produces forecasting and budgeting information that is reviewed and monitored by the Board of Directors. Cash generated from operations and external financing are the main sources of funding. The primary external sources of funding are the Company’s ABL Revolving Facility and Senior Notes as described in Note 23. Interest rate risk Signet has exposure to movements in interest rates associated with cash and borrowings. Signet may enter into various interest rate protection agreements in order to limit the impact of movements in interest rates. Interest rate swap (designated) — The Company entered into an interest rate swap in March 2015 with an aggregate notional amount of $300.0 million that matured in April 2019. Under this contract, the Company agreed to exchange, at specified intervals, the difference between fixed contract rates and floating rate interest amounts calculated by reference to the agreed notional amounts. This contract was entered into to reduce the consolidated interest rate risk associated with variable rate, long-term debt. The Company designated this derivative as a cash flow hedge of the variability in expected cash outflows for interest payments. During the term of the interest rate swap, the Company effectively converted a portion of its variable-rate senior unsecured term loan into fixed-rate debt. Credit risk and concentrations of credit risk Credit risk represents the loss that would be recognized at the reporting date if counterparties failed to perform as contracted. Signet does not anticipate non-performance by counterparties of its financial instruments. Signet does not require collateral or other security to support cash investments or financial instruments with credit risk; however, it is Signet’s policy to only hold cash and cash equivalent investments and to transact financial instruments with financial institutions with a certain minimum credit rating. As of January 30, 2021, management does not believe Signet is exposed to any significant concentrations of credit risk that arise from cash and cash equivalent investments, derivatives or accounts receivable. Commodity and foreign currency risks The following types of derivative financial instruments are utilized by Signet to mitigate certain risk exposures related to changes in commodity prices and foreign exchange rates: Forward foreign currency exchange contracts (designated) — These contracts, which are principally in US dollars, are entered into to limit the impact of movements in foreign exchange rates on forecasted foreign currency purchases. These contracts were de-designated during the 13 weeks ended May 2, 2020. This de-designation occurred due to uncertainly around the volume of purchases in the Company’s UK business. These contracts were unlikely to retain hedge effectiveness given the change in circumstances as a result of COVID-19. Trading for these contracts resumed during the third quarter of Fiscal 2021. The total notional amount of these foreign currency contracts outstanding as of January 30, 2021 was $12.5 million (February 1, 2020: $23.0 million). These contracts have been designated as cash flow hedges and will be settled over the next 12 months (February 1, 2020: 12 months). Forward foreign currency exchange contracts (undesignated) — Foreign currency contracts not designated as cash flow hedges are used to mitigate Signet’s exposure to foreign currency exchange risk in its cash and borrowings. The total notional amount of these foreign currency contracts outstanding as of January 30, 2021 was $107.6 million (February 1, 2020: $224.2 million). Commodity forward purchase contracts, options and net zero premium collar arrangements (designated) — These contracts are entered into to reduce Signet’s exposure to significant movements in the price of the underlying precious metal raw material. During the 13 weeks ended May 2, 2020, the contracts which were still outstanding (and unrealized) were de-designated and liquidated. The contracts which were already settled remain designated as the hedged inventory purchases from these contracts are still on hand. The unrealized contracts were de-designated as a result of uncertainty around the Company’s future purchasing volume due to COVID-19 and thus the contracts were unlikely to retain hedge effectiveness. Trading for these contracts resumed during the third quarter of Fiscal 2021. The total notional amount of these commodity derivative contracts outstanding as of January 30, 2021 was for approximately 1,000 ounces of gold (February 1, 2020: 63,000 ounces). These contracts have been designated as cash flow hedges and will be settled over the next 3 months (February 1, 2020: 12 months). The bank counterparties to the derivative instruments expose Signet to credit-related losses in the event of their non-performance. However, to mitigate that risk, Signet only contracts with counterparties that meet certain minimum requirements under its counterparty risk assessment process. As of January 30, 2021, Signet believes that this credit risk did not materially change the fair value of the foreign currency or commodity contracts. The following table summarizes the fair value and presentation of derivative instruments in the consolidated balance sheets: Fair value of derivative assets (in millions) Balance sheet location January 30, 2021 February 1, 2020 Derivatives designated as hedging instruments: Commodity contracts Other current assets $ — $ 11.8 Derivatives not designated as hedging instruments: Foreign currency contracts Other current assets 0.1 0.6 Total derivative assets $ 0.1 $ 12.4 Fair value of derivative liabilities (in millions) Balance sheet location January 30, 2021 February 1, 2020 Derivatives designated as hedging instruments: Foreign currency contracts Other current liabilities $ (0.3) $ (0.8) Commodity contracts Other current liabilities (0.1) — (0.4) (0.8) Derivatives not designated as hedging instruments: Foreign currency contracts Other current liabilities — (0.1) Total derivative liabilities $ (0.4) $ (0.9) Derivatives designated as cash flow hedges The following table summarizes the pre-tax gains (losses) recorded in AOCI for derivatives designated in cash flow hedging relationships: (in millions) January 30, 2021 February 1, 2020 Foreign currency contracts $ (0.7) $ (1.0) Commodity contracts (0.4) 17.7 Gains (losses) recorded in AOCI $ (1.1) $ 16.7 The following tables summarize the effect of derivative instruments designated as cash flow hedges in OCI and the consolidated statements of operations: Foreign currency contracts (in millions) Statement of operations caption Fiscal 2021 Fiscal 2020 Gains (losses) recorded in AOCI, beginning of period $ (1.0) $ 0.7 Current period gains (losses) recognized in OCI 0.9 (0.6) (Gains) losses reclassified from AOCI to net income Cost of sales (1) — (1.1) Gains from de-designated hedges reclassified from AOCI to net income Other operating income (loss) (1) (0.6) — Gains (losses) recorded in AOCI, end of period $ (0.7) $ (1.0) Commodity contracts (in millions) Statement of operations caption Fiscal 2021 Fiscal 2020 Gains (losses) recorded in AOCI, beginning of period $ 17.7 $ 4.0 Current period gains (losses) recognized in OCI (1.9) 15.4 Gains reclassified from AOCI to net income Cost of sales (1) (6.9) (1.7) Gains from de-designated hedges reclassified from AOCI to net income Other operating income (loss) (1) (9.3) — Gains (losses) recorded in AOCI, end of period $ (0.4) $ 17.7 Interest rate swaps (in millions) Statement of operations caption Fiscal 2021 Fiscal 2020 Gains recorded in AOCI, beginning of period $ — $ 0.6 Current period gains recognized in OCI — — Gains reclassified from AOCI to net income Interest expense, net (1) — (0.6) Gains recorded in AOCI, end of period $ — $ — (1) Refer to table below for total amounts of financial statement captions impacted by cash flow hedges. Total amounts presented in the consolidated statements of operations (in millions) Fiscal 2021 Fiscal 2020 Cost of sales $ (3,493.0) $ (3,904.2) Other operating income (loss) 2.4 (29.6) Interest expense, net (32.0) (35.6) There was no material ineffectiveness related to the Company’s derivative instruments designated in cash flow hedging relationships during Fiscal 2021 and Fiscal 2020, other than the items disclosed above during the first quarter of Fiscal 2021. Based on current valuations, the Company expects approximately $1.0 million of net pre-tax derivative losses to be reclassified out of AOCI into earnings within the next 12 months. Derivatives not designated as hedging instruments The following table presents the effects of the Company’s derivatives instruments not designated as cash flow hedges in the consolidated statements of operations: (in millions) Statement of operations caption Fiscal 2021 Fiscal 2020 Foreign currency contracts Other operating income (loss) $ 2.2 $ (3.1) |
Fair value measurement
Fair value measurement | 12 Months Ended |
Jan. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair value measurement | Fair value measurement The estimated fair value of Signet’s financial instruments held or issued to finance Signet’s operations is summarized below. Certain estimates and judgments were required to develop the fair value amounts. The fair value amounts shown below are not necessarily indicative of the amounts that Signet would realize upon disposition nor do they indicate Signet’s intent or ability to dispose of the financial instrument. Assets and liabilities that are carried at fair value are required to be classified and disclosed in one of the following three categories: Level 1—quoted market prices in active markets for identical assets and liabilities Level 2—observable market based inputs or unobservable inputs that are corroborated by market data Level 3—unobservable inputs that are not corroborated by market data Signet determines fair value based upon quoted prices when available or through the use of alternative approaches, such as discounting the expected cash flows using market interest rates commensurate with the credit quality and duration of the investment. The methods Signet uses to determine fair value on an instrument-specific basis are detailed below: January 30, 2021 February 1, 2020 (in millions) Carrying Value Level 1 Carrying Value Level 1 Level 2 Assets: US Treasury securities $ 5.7 $ 5.7 $ — $ 7.2 $ 7.2 $ — Foreign currency contracts 0.1 — 0.1 0.6 — 0.6 Commodity contracts — — — 11.8 — 11.8 US government agency securities 3.2 — 3.2 4.7 — 4.7 Corporate bonds and notes 6.5 — 6.5 8.5 — 8.5 Total assets $ 15.5 $ 5.7 $ 9.8 $ 32.8 $ 7.2 $ 25.6 Liabilities: Foreign currency contracts $ (0.3) $ — $ (0.3) $ (0.9) $ — $ (0.9) Commodity contracts (0.1) — (0.1) — — — Total liabilities $ (0.4) $ — $ (0.4) $ (0.9) $ — $ (0.9) Investments in US Treasury securities are based on quoted market prices for identical instruments in active markets, and therefore were classified as Level 1 measurements in the fair value hierarchy. Investments in US government agency securities and corporate bonds and notes are based on quoted prices for similar instruments in active markets, and therefore were classified as Level 2 measurements in the fair value hierarchy. See Note 19 for additional information related to the Company’s available-for-sale investments. The fair value of derivative financial instruments has been determined based on market value equivalents at the balance sheet date, taking into account the current foreign currency forward rates or commodity forward rates, and therefore were classified as Level 2 measurements in the fair value hierarchy. See Note 20 for additional information related to the Company’s derivatives. During the second quarter of Fiscal 2019, the Company completed the sale of all eligible non-prime in-house accounts receivable. Upon closing, 5% of the purchase price was deferred until the second anniversary of the closing date. Final payment of the deferred purchase price was contingent upon the non-prime portfolio achieving a pre-defined yield. The Company recorded an asset at the transaction date related to this deferred payment at fair value. This estimated fair value was derived from a discounted cash flow model using unobservable Level 3 inputs, including estimated yields derived from historic performance, loss rates, payment rates and discount rates to estimate the fair value associated with the accounts receivable. The measurement period was completed in June 2020 and the Company expects to receive the full deferred payment of $23.5 million, which is recorded within other current assets on the consolidated balance sheet as of January 30, 2021. As a result of the amended agreements described in Note 4 and Note 13, the deferred payment will now be due in June 2021, or earlier upon termination by the parties. Goodwill and other indefinite-lived intangible assets, are evaluated for impairment annually or more frequently if events or conditions were to indicate the carrying value of a reporting unit or an indefinite-lived intangible asset may be greater than its fair value. Long-lived asset impairment testing is performed if events occur which indicate the carrying value of the long-lived asset or asset group may be greater than its fair value, and when the undiscounted cash flows of the asset or asset group are below its carrying value. Impairment testing compares the carrying amount of the reporting unit or other asset with its fair value. During Fiscal 2021, 2020 and 2019, the Company performed interim and annual impairment tests for goodwill, indefinite-lived intangible assets, and long-lived assets. The fair value was calculated using the income approach for the reporting units and the relief from royalty method for the indefinite-lived intangible assets, respectively. The fair value is a Level 3 valuation based on certain unobservable inputs including estimated future cash flows and discount rates aligned with market-based assumptions, that would be utilized by market participants in valuing these assets or prices of similar assets. For long-lived assets, the Company utilizes primarily the replacement cost method for the fair value of its property and equipment, and the income method to estimate the fair value of its ROU assets, which incorporates Level 3 inputs such as historical store level sales, internal business plans, real estate market capitalization and rental rates, and discount rates. See Note 16 and Note 18 for additional information. The carrying amounts of cash and cash equivalents, accounts receivable, other current assets, accounts payable, accrued expenses and other current liabilities, and income taxes approximate fair value because of the short-term maturity of these amounts. The fair values of long-term debt instruments, excluding revolving credit facilities, were determined using quoted market prices in inactive markets or discounted cash flows based upon current observable market interest rates and therefore were classified as Level 2 measurements in the fair value hierarchy. The carrying value of the ABL Revolving Facility (as defined in Note 23) approximates fair value. The following table provides a summary of the carrying amount and fair value of outstanding debt: January 30, 2021 February 1, 2020 (in millions) Carrying Fair Value Carrying Fair Value Long-term debt Senior Notes (Level 2) $ 146.7 $ 145.1 $ 146.4 $ 144.8 Term loans (Level 2) — — 99.5 100.0 Total $ 146.7 $ 145.1 $ 245.9 $ 244.8 |
Retirement plans
Retirement plans | 12 Months Ended |
Jan. 30, 2021 | |
Retirement Benefits [Abstract] | |
Retirement plans | Retirement plans Signet operates a defined benefit pension plan in the UK (the “UK Plan”) which ceased to admit new employees effective April 2004. The UK Plan provides benefits to participating eligible employees. Beginning in Fiscal 2014, a change to the benefit structure was implemented and members’ benefits that accumulate after that date are now based upon career average salaries, whereas previously, all benefits were based on salaries at retirement. In September 2017, the Company approved an amendment to freeze benefit accruals under the UK Plan in an effort to reduce anticipated future pension expense. As a result of this amendment, the Company froze the pension plan for all participants with an effective date of October 2019 as elected by the plan participants. All future benefit accruals under the plan have thus ceased as of this date. The amendment to the plan was accounted for in accordance with FASB Accounting Standards Codification (“ASC”) Topic 715, “Compensation - Retirement Benefits.” The net periodic pension cost of the UK Plan is measured on an actuarial basis using the projected unit credit method and several actuarial assumptions, the most significant of which are the discount rate and the expected long-term rate of return on plan assets. Other material assumptions include rates of participant mortality, the expected long-term rate of compensation and pension increases, and rates of employee attrition. Gains and losses occur when actual experience differs from actuarial assumptions. If such gains or losses exceed 10% of the greater of plan assets or plan liabilities, Signet amortizes those gains or losses over the average remaining service period of the employees. The service cost component of net periodic pension cost is charged to selling, general and administrative expenses while non-service, interest and other costs components are charged to other non-operating income, net, in the consolidated statements of operations. The UK Plan is a funded plan with assets held in a separate trustee administered fund, which is independently managed. Signet used January 30, 2021 and February 1, 2020 measurement dates in determining the UK Plan’s benefit obligation and fair value of plan assets. The following tables provide information concerning the UK Plan as of and for the fiscal years ended January 30, 2021 and February 1, 2020: (in millions) Fiscal 2021 Fiscal 2020 Change in UK Plan assets: Fair value at beginning of year $ 281.9 $ 245.5 Actual return on UK Plan assets 11.9 36.8 Employer contributions 4.4 5.3 Members’ contributions — 0.2 Benefits paid (9.8) (9.4) Foreign currency translation 10.8 3.5 Fair value at end of year $ 299.2 $ 281.9 (in millions) Fiscal 2021 Fiscal 2020 Change in benefit obligation: Benefit obligation at beginning of year $ 243.4 $ 214.9 Service cost — 0.7 Interest cost 4.0 5.5 Members’ contributions — 0.2 Actuarial loss 1.4 29.2 Benefits paid (9.8) (9.4) Foreign currency translation 8.6 2.3 Benefit obligation at end of year $ 247.6 $ 243.4 Funded status at end of year $ 51.6 $ 38.5 (in millions) January 30, 2021 February 1, 2020 Amounts recognized in the balance sheet consist of: Other assets (non current) $ 51.6 $ 38.5 Items in AOCI not yet recognized in net income in the consolidated statements of operations: (in millions) January 30, 2021 February 1, 2020 February 2, 2019 Net actuarial losses $ (47.2) $ (52.4) $ (53.8) Net prior service costs (4.0) (4.1) (4.1) The estimated actuarial losses and prior service costs for the UK Plan that will be amortized from AOCI into net periodic pension cost over the next fiscal year are $(0.8) million and $(0.1) million, respectively. The accumulated benefit obligation for the UK Plan was $247.6 million and $243.4 million as of January 30, 2021 and February 1, 2020, respectively. The components of net periodic pension benefit cost and other amounts recognized in OCI for the UK Plan are as follows: (in millions) Fiscal 2021 Fiscal 2020 Fiscal 2019 Components of net periodic benefit (cost) income: Service cost $ — $ (0.7) $ (0.9) Interest cost (4.0) (5.5) (5.8) Expected return on UK Plan assets 5.5 7.8 8.4 Amortization of unrecognized actuarial losses (0.9) (1.2) (0.9) Amortization of unrecognized net prior service costs (0.1) — — Total net periodic benefit (cost) income $ 0.5 $ 0.4 $ 0.8 Other changes in assets and benefit obligations recognized in OCI 6.5 1.7 (11.3) Total recognized in net periodic pension benefit (cost) and OCI $ 7.0 $ 2.1 $ (10.5) January 30, 2021 February 1, 2020 Assumptions used to determine benefit obligations (at the end of the year): Discount rate 1.60 % 1.70 % Salary increases N/A N/A Assumptions used to determine net periodic pension costs (at the start of the year): Discount rate 1.70 % 2.70 % Expected return on UK Plan assets 2.20 % 3.50 % Salary increases N/A 1.50 % The discount rate is based upon published rates for high-quality fixed-income investments that produce expected cash flows that approximate the timing and amount of expected future benefit payments. The expected return on the UK Plan assets assumption is based upon the historical return and future expected returns for each asset class, as well as the target asset allocation of the portfolio of UK Plan assets. The UK Plan’s investment strategy is guided by an objective of achieving a return on the investments, which is consistent with the long-term return assumptions and funding policy, to ensure the UK Plan obligations are met. The investment policy is to allocate funds to a diverse portfolio of investments, including UK and global equities, diversified growth funds, corporate bonds, fixed income investments and commercial property. The commercial property investment is through a Pooled Pensions Property Fund that provides a diversified portfolio of property assets. As of January 30, 2021, the long-term target allocation for the UK Plan’s assets was bonds 74%, diversified growth funds 21%, equities 4% and property 1%. This allocation is consistent with the long-term target allocation of investments underlying the UK Plan’s funding strategy. The fair value of the assets in the UK Plan at January 30, 2021 and February 1, 2020 are required to be classified and disclosed in one of the following three categories: Level 1—quoted market prices in active markets for identical assets and liabilities Level 2—observable market based inputs or unobservable inputs that are corroborated by market data Level 3—unobservable inputs that are not corroborated by market data The methods Signet uses to determine fair value on an instrument-specific basis are detailed below: Fair value measurements as of January 30, 2021 Fair value measurements as of February 1, 2020 (in millions) Total Total Level 1 Level 2 Asset category: Diversified equity securities $ 13.0 $ — $ 13.0 $ 15.1 $ — $ 15.1 Diversified growth funds 44.4 44.4 — 49.8 49.8 — Fixed income – government bonds 161.4 161.4 — 139.7 139.7 — Fixed income – corporate bonds 56.2 — 56.2 48.8 — 48.8 Cash 3.7 3.7 — 4.3 4.3 — Investments measured at NAV (1) : Diversified growth funds 18.0 17.8 Property 2.5 6.4 Total $ 299.2 $ 209.5 $ 69.2 $ 281.9 $ 193.8 $ 63.9 (1) Certain assets that are measured at fair value using the net asset value (“NAV”) practical expedient have not been classified in the fair value hierarchy. Investments in diversified equity securities, diversified growth funds and fixed income securities are in pooled funds. Investments are valued based on unadjusted quoted prices for each fund in active markets, where possible and, therefore, classified in Level 1 of the fair value hierarchy. If unadjusted quoted prices for identical assets are unavailable, investments are valued by the administrators of the funds. The valuation is based on the value of the underlying assets owned by the fund, minus its liabilities, and then divided by the number of units outstanding. The unit price is based on underlying investments which are generally either traded in an active market or are valued based on observable inputs such as market interest rates and quoted prices for similar securities and, therefore, classified in Level 2 of the fair value hierarchy. Certain fixed income investments are in an interest-based return through investments in various asset classes including: asset backed securities, mortgage backed securities, collateralized debt and loan obligations, and loan investments. The same investments in are subject to certain restrictions whereby funds may only be divested quarterly. The investment in property is in pooled funds valued by the administrators of the fund. The investment in the property fund is subject to certain restrictions on withdrawals that could delay the receipt of funds by up to 16 months. The valuation of these assets are based on the NAV of underlying assets, which are independently valued on a monthly basis. Signet contributed $4.4 million to the UK Plan in Fiscal 2021 and expects to contribute a minimum of $4.7 million to the UK Plan in Fiscal 2022. The level of contributions is in accordance with an agreed upon deficit recovery plan and based on the results of the actuarial valuation as of April 5, 2020. The following benefit payments are currently estimated to be paid by the UK Plan: (in millions) Expected benefit payments Fiscal 2022 $ 9.7 Fiscal 2023 9.6 Fiscal 2024 9.6 Fiscal 2025 9.5 Fiscal 2026 9.7 Next five fiscal years $ 49.3 Other retirement plans In June 2004, Signet introduced a defined contribution plan which replaced the UK Plan for new UK employees. The contributions to this plan in Fiscal 2021 were $2.4 million (Fiscal 2020: $2.4 million; Fiscal 2019: $2.3 million). In the US, Signet operates a defined contribution 401(k) retirement savings plan for all eligible employees who meet minimum age and service requirements. The assets of this plan are held in a separate trust and Signet matches 50% of up to 6% of employee elective salary deferrals, subject to statutory limitations. Signet’s contributions to this plan in Fiscal 2021 were $3.2 million (Fiscal 2020: $9.1 million; Fiscal 2019: $10.4 million). The Company has also established two unfunded, non-qualified deferred compensation plans, one of which permits certain management and highly compensated employees to elect annually to defer all or a portion of their compensation and earn interest on the deferred amounts (“DCP”) and the other of which is frozen as to new participants and new deferrals. Beginning in April 2011, the DCP provided for a matching contribution based on each participant’s annual compensation deferral. The plan also permits employer contributions on a discretionary basis. The cost recognized in connection with the DCP in Fiscal 2021 was $0.8 million (Fiscal 2020: $3.6 million; Fiscal 2019: $3.6 million). The matching contributions, for both the Signet 401(k) and DCP, were temporarily suspended during the first quarter of Fiscal 2021. The matching contributions resumed effective January 1, 2021. The fair value of the assets in the two unfunded, non-qualified deferred compensation plans at January 30, 2021 and February 1, 2020 are required to be classified and disclosed. Although these plans are not required to be funded by the Company, the Company has elected to fund the plans by investing in trust-owned life insurance policies and money market funds. The value and classification of these assets are as follows: Fair value measurements as of January 30, 2021 Fair value measurements as of February 1, 2020 (in millions) Total Total Level 1 Level 2 Assets: Corporate-owned life insurance plans $ 6.3 $ — $ 6.3 $ 6.5 $ — $ 6.5 Money market funds 21.7 21.7 — 21.0 21.0 — Total assets $ 28.0 $ 21.7 $ 6.3 $ 27.5 $ 21.0 $ 6.5 As of January 30, 2021 and February 1, 2020, the total liability recorded by the Company for the DCP was $33.3 million and $35.4 million, respectively. |
Loans, overdrafts and long-term
Loans, overdrafts and long-term debt | 12 Months Ended |
Jan. 30, 2021 | |
Debt Disclosure [Abstract] | |
Loans, overdrafts and long-term debt | Loans, overdrafts and long-term debt (in millions) January 30, 2021 February 1, 2020 Debt: Senior Notes, net of unamortized discount $ 147.6 $ 147.5 ABL Revolving Facility — 270.0 FILO term loan facility — 100.0 Other loans and bank overdrafts — 95.6 Gross debt $ 147.6 $ 613.1 Less: Current portion of loans and overdrafts — (95.6) Less: Unamortized debt issuance costs (0.9) (1.6) Total long-term debt $ 146.7 $ 515.9 The annual aggregate maturities of the Company’s debt (excluding the impact of debt issuance costs) for the five years subsequent to January 30, 2021 are presented below. (in millions) Fiscal 2022 $ — Fiscal 2023 — Fiscal 2024 — Fiscal 2025 147.6 Fiscal 2026 — Thereafter — Gross Debt $ 147.6 Revolving credit facility and term loan (the “Credit Facility”) On September 27, 2019, in connection with the issuance of a new senior secured asset-based credit facility, the Company repaid and terminated the Credit Facility. Refer to the “Asset-based credit facility” section below. The original maturity of the Credit Facility was July 2021. Unamortized debt issuance costs of $2.0 million associated with the Credit Facility were written-off during Fiscal 2020 upon executing the termination of the Credit Facility. This expense was recognized as a cost of extinguishment of the Credit Facility and was recorded within other non-operating income, net, in the consolidated statements of operations. Senior unsecured notes due 2024 On May 19, 2014, Signet UK Finance plc (“Signet UK Finance”), a wholly owned subsidiary of the Company, issued $400 million aggregate principal amount of its 4.70% senior unsecured notes due in 2024 (the “Senior Notes”). The Senior Notes were issued under an effective registration statement previously filed with the SEC. Interest on the Senior Notes is payable semi-annually on June 15 and December 15 of each year. The Senior Notes are jointly and severally guaranteed, on a full and unconditional basis, by the Company and by certain of the Company’s wholly owned subsidiaries (such subsidiaries, the “Guarantors”). The Senior Notes were issued pursuant to a base indenture among the Company, Signet UK Finance, the Guarantors and Deutsche Bank Trust Company Americas as trustee, with the indenture containing customary covenants and events of default provisions. On September 5, 2019, Signet UK Finance announced the commencement of a tender offer to purchase any and all of its outstanding Senior Notes (the “Tender Offer”). Upon receipt of the requisite consents from Senior Note holders, Signet UK Finance entered into a supplemental indenture which eliminated most of the restrictive covenants and certain default provisions of the indenture. The supplemental indenture became operative on September 27, 2019 upon the Company’s acceptance and payment for the Senior Notes previously validly tendered and not validly withdrawn pursuant to the Tender Offer for an aggregate principal amount of $239.6 million, which represented a purchase price of $950.00 per $1,000.00 in principal amount of the Senior Notes validly tendered. The Company recognized a net gain on extinguishment of the validly tendered Senior Notes in Fiscal 2020 of $8.2 million, net of $1.9 million in third party fees and $2.6 million in write-off of unamortized debt issuance costs and original issue discount. This net gain was recorded within other non-operating income, net, in the consolidated statements of operations. Unamortized debt issuance costs relating to the Senior Notes as of January 30, 2021 was $0.9 million (February 1, 2020: $1.1 million). The remaining unamortized debt issuance costs are recorded as a direct deduction from the outstanding liability within the consolidated balance sheets. Amortization relating to debt issuance costs of $0.2 million was recorded as interest expense in the consolidated statements of operations in Fiscal 2021 ($0.6 million and $0.7 million during Fiscal 2020 and Fiscal 2019, respectively). Asset-based credit facility On September 27, 2019, the Company entered into a senior secured asset-based credit facility consisting of (i) a revolving credit facility in an aggregate committed amount of $1.5 billion (“ABL Revolving Facility”) and (ii) a first-in last-out term loan facility in an aggregate principal amount of $100.0 million (the “FILO Term Loan Facility” and, together with the ABL Revolving Facility, the “ABL Facility”) pursuant to that certain credit agreement. The ABL Facility will mature on September 27, 2024. Revolving loans under the ABL Revolving Facility are available in an aggregate amount equal to the lesser of the aggregate ABL revolving commitments and a borrowing base determined based on the value of certain inventory and credit card receivables, subject to specified advance rates and reserves. Indebtedness under the ABL Facility is secured by substantially all of the assets of the Company and its subsidiaries, subject to customary exceptions. Borrowings under the ABL Revolving Facility and the FILO Term Loan Facility, as applicable, bear interest at the Company’s option at either eurocurrency rate plus the applicable margin or a base rate plus the applicable margin, in each case depending on the excess availability under the ABL Revolving Facility. As of January 30, 2021, the interest rate applicable to the ABL Revolving Facility was 1.7% (February 1, 2020: 2.8%). The Company had stand-by letters of credit outstanding of $19.0 million on the ABL Revolving Facility as of January 30, 2021 (February 1, 2020: $14.9 million). The Company had available borrowing capacity of $1.3 billion on the ABL Revolving Facility as of January 30, 2021 (February 1, 2020: $1.2 billion). As a result of the risks and uncertainties associated with the potential impacts of COVID-19 on the Company’s business, as a prudent measure to increase the Company’s financial flexibility and bolster its cash position, the Company borrowed an additional $900 million on the ABL Revolving Facility during the first quarter of Fiscal 2021. The Company made ABL Revolving Facility repayments during the third and fourth quarter of Fiscal 2021 and the outstanding amount borrowed under ABL Revolving Facility was fully paid down by the end of Fiscal 2021. During the fourth quarter of Fiscal 2021, the Company fully repaid the FILO Term Loan Facility. The remaining unamortized debt issuance costs of $0.4 million were written-off upon repayment of the FILO Term Loan Facility. This expense was recognized as a cost of extinguishment of debt and was recorded within other non-operating income, net, in the consolidated statements of operations. If the excess availability under the ABL Revolving Facility falls below the threshold specified in the ABL Facility agreement, the Company will be required to maintain a fixed charge coverage ratio of not less than 1.00 to 1.00. As of January 30, 2021, the threshold related to the fixed coverage ratio was approximately $136 million. The ABL Facility places certain restrictions upon the Company’s ability to, among other things, incur additional indebtedness, pay dividends, grant liens and make certain loans, investments and divestitures. The ABL Facility contains customary events of default (including payment defaults, cross-defaults to certain of the Company’s other indebtedness, breach of representations and covenants and change of control). The occurrence of an event of default under the ABL Facility would permit the lenders to accelerate the indebtedness and terminate the ABL Facility. Debt issuance costs relating to the ABL Revolving Facility totaled $8.7 million. The remaining unamortized debt issuance costs are recorded within other assets in the consolidated balance sheets. Amortization relating to the debt issuance costs of $1.7 million was recorded as interest expense in the consolidated statements of operations for Fiscal 2021 (Fiscal 2020: $0.6 million). Unamortized debt issuance costs related to the ABL Revolving Facility totaled $6.4 million as of January 30, 2021 (February 1, 2020: $8.1 million). Other As of January 30, 2021 and February 1, 2020, the Company was in compliance with all debt covenants. As of January 30, 2021 and February 1, 2020, there were $0.0 million and $87.5 million in overdrafts, respectively, which represent issued and outstanding checks where no bank balances exist with the right of offset. |
Accrued expenses and other curr
Accrued expenses and other current liabilities | 12 Months Ended |
Jan. 30, 2021 | |
Payables and Accruals [Abstract] | |
Accrued expenses and other current liabilities | Accrued expenses and other current liabilities (in millions) January 30, 2021 February 1, 2020 Accrued compensation and benefits $ 111.6 $ 63.1 Accrued advertising 52.3 33.8 Other taxes 69.3 32.8 Payroll taxes 27.5 11.7 Shareholder litigation (see Note 27) — 240.6 Accrued expenses 233.4 315.0 Total accrued expenses and other current liabilities $ 494.1 $ 697.0 The North America segment provides a product lifetime diamond guarantee as long as six-month inspections are performed and certified by an authorized store representative. Provided the customer has complied with the six-month inspection policy, the Company will replace, at no cost to the customer, any stone that chips, breaks or is lost from its original setting during normal wear. Management estimates the warranty accrual based on the lag of actual claims experience and the costs of such claims, inclusive of labor and material. A similar product lifetime guarantee is also provided on color gemstones. The warranty reserve for diamond and gemstone guarantee is as follows: (in millions) Fiscal 2021 Fiscal 2020 Fiscal 2019 Warranty reserve, beginning of period $ 36.3 $ 33.2 $ 37.2 Warranty expense 8.5 13.5 8.0 Utilized (1) (7.5) (10.4) (12.0) Warranty reserve, end of period $ 37.3 $ 36.3 $ 33.2 (1) Includes impact of foreign exchange translation. (in millions) January 30, 2021 February 1, 2020 Disclosed as: Current liabilities (1) $ 10.7 $ 10.6 Other liabilities - non-current (see Note 25) 26.6 25.7 Total warranty reserve $ 37.3 $ 36.3 |
Other liabilities - non-current
Other liabilities - non-current | 12 Months Ended |
Jan. 30, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Other liabilities - non-current | Other liabilities - non-current (in millions) January 30, 2021 February 1, 2020 Deferred compensation 25.5 31.0 Warranty reserve 26.6 25.7 Other liabilities 59.0 59.9 Total other liabilities $ 111.1 $ 116.6 |
Share-based compensation
Share-based compensation | 12 Months Ended |
Jan. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-based compensation | Share-based compensation Signet operates several share-based compensation plans which can be categorized as the “Omnibus Plans” and “Share Saving Plans” as further described below. Share-based compensation expense and the associated tax benefits recognized in the consolidated statements of operations are as follows: (in millions) Fiscal 2021 Fiscal 2020 Fiscal 2019 Share-based compensation expense $ 14.5 $ 16.9 $ 16.5 Income tax benefit $ (3.6) $ (4.2) $ (4.1) On March 25, 2020, in light of the economic situation as a result of the COVID-19 pandemic, the Company implemented temporary base salary reductions for members of senior management, with half of the salary reduction amount to be awarded in the Company’s common shares in lieu of cash. The base salaries were reinstated in September 2020. In Fiscal 2021, $1.3 million of Common Shares with no vesting requirements was awarded to senior management. As of January 30, 2021, unrecognized compensation cost related to unvested awards granted under share-based compensation plans is as follows: (in millions) Unrecognized Compensation Cost Weighted average period Omnibus Plan $ 26.6 2.2 years Share Saving Plans 0.1 0.7 years Total $ 26.7 The Company satisfies share option exercises and the vesting of restricted stock (“RSAs”) and restricted stock units (“RSUs”) under its plans with the issuance of treasury shares. Omnibus Plan In June 2018, Signet’s shareholders approved and Signet adopted the Signet Jewelers Limited 2018 Omnibus Incentive Plan (as amended to the date here to, the “2018 Omnibus Plan”). Upon adoption of the 2018 Omnibus Plan, shares that were previously available under the Signet Jewelers Limited Omnibus Incentive Plan, which was approved in June 2009 (the “2009 Omnibus Plan”)(collectively, with the 2018 Omnibus Incentive Plan, the “Omnibus Plans”) are no longer available for future grants and were not transferred to the 2018 Omnibus Incentive Plan. Awards that may be granted under the 2018 Omnibus Plan include RSAs, RSUs, Common Shares, stock options, stock appreciation rights and other stock-based awards. The Fiscal 2021, Fiscal 2020 and Fiscal 2019 annual awards granted under the Omnibus Plans have five elements: time-based RSAs, time-based RSUs, performance-based RSUs, Common Shares, and time-based stock options. The time-based restricted stock has a three-year vesting period, subject to continued employment, and has the same voting rights and dividend rights as Common Shares (which are payable once the shares have vested). Performance-based RSUs awarded in Fiscal 2019 and Fiscal 2020 include two performance measures: operating income (subject to certain adjustments) and return on invested capital (“ROIC”), although the ROIC measure is applicable only to senior executives. Performance-based RSUs awarded in Fiscal 2021 include two performance measures: revenue and free cash flow (defined as cash flow from operations less capital expenditures). For the performance measures, cumulative results achieved during the relevant three ten one three RSU awards do not have dividend rights until vesting, and thus the grant date fair value of these awards is impacted by the dividend yield and term of the awards. However, RSAs do have dividend rights from the date of grant, and thus are valued at the market price of the Company’s stock on the grant date, consistent with awards of Common Shares. The significant assumptions utilized to estimate the weighted-average fair value of RSAs, Common Shares and RSU awards granted under the Omnibus Plans are as follows: Omnibus Plan Fiscal 2021 Fiscal 2020 Fiscal 2019 Share price $ 11.10 $ 20.76 $ 41.36 Expected term 2.9 years 2.8 years 2.8 years Dividend yield 5.5 % 7.5 % 3.6 % Fair value $ 9.37 $ 18.14 $ 38.57 The significant assumptions utilized to estimate the weighted-average fair value of stock options granted under the Omnibus Plans are as follows: Fiscal 2020 Fiscal 2019 Share price $ 22.17 $ 40.09 Exercise price $ 25.18 $ 39.72 Risk free interest rate 2.4 % 2.9 % Expected term 6.0 years 6.5 years Expected volatility 42.7 % 37.6 % Dividend yield 6.7 % 3.7 % Fair value $ 4.27 $ 11.21 The risk-free interest rate is based on the US Treasury yield curve in effect at the grant date with remaining terms equal to the expected term of the awards. The expected term utilized is the length of time the awards are expected to be outstanding, primarily based on the vesting period and expiration date of the awards. The expected volatility is determined by calculating the historical volatility of Signet’s share price over the expected term of the award. The Fiscal 2021 activity for Common Shares, RSAs, and time-based and performance-based RSU awards granted under the Omnibus Plans is as follows: Omnibus Plans (in millions, except per share amounts) No. of Weighted Weighted Intrinsic (1) Outstanding at February 1, 2020 2.8 $ 31.04 1.5 years $ 66.9 Fiscal 2021 activity: Granted 3.3 9.62 Vested (0.4) 30.25 Lapsed or forfeited (0.9) 34.20 Outstanding at January 30, 2021 4.8 $ 15.24 1.8 years $ 192.3 (1) Intrinsic value for outstanding restricted stock and RSUs is based on the fair market value of Signet’s common stock on the last business day of the fiscal year. The Fiscal 2021 activity for stock options granted under the Omnibus Plans is as follows: Omnibus Plans (in millions, except per share amounts) No. of Weighted Weighted Intrinsic (1) Outstanding at February 1, 2020 0.7 $ 39.13 8.3 years $ — Fiscal 2021 activity: Granted — — Exercised — — Lapsed or forfeited (0.2) 39.61 Outstanding at January 30, 2021 0.5 $ 38.98 7.3 years $ 0.8 (1) Intrinsic value for outstanding awards is based on the fair market value of Signet’s common stock on the last business day of the fiscal year. The following table summarizes additional information about awards granted under the Omnibus Plan: (in millions) Fiscal 2021 Fiscal 2020 Fiscal 2019 Total intrinsic value of awards vested $ 5.0 $ 3.5 $ 6.8 Other Share-Based Plans Signet has three share option savings plans available to employees as follows: • Employee Share Purchase Plan (“ESPP”), for US employees • Sharesave Plan, for UK employees • Irish Sub-Plan to the Sharesave Plan, for Republic of Ireland employees The ESPP as adopted in 2018 is a savings plan intended to qualify under US Section 423 of the US Internal Revenue Code and allows employees to purchase common shares at a discount of approximately 5% to the closing price of the New York Stock Exchange on the date of purchase, which occurs on the last trading day of a twelve-month offering period. This plan is non-compensatory and no more than 1,250,000 shares may be issued under the ESPP. The Company suspended participation in the ESPP in August 2019, thus no shares were issued in Fiscal 2021 or Fiscal 2020. The Sharesave Plan and Irish Sub-Plan (collectively, the “Sharesave Plans”) as adopted in 2018 allow eligible employees to be granted, and to exercise, options over common shares at a discount of approximately 15% below a determined market price based on the New York Stock Exchange, using savings accumulated under savings contract entered into in accordance with the relevant plan rules. The market price is generally determined as one of: (i) the average middle market price for the three trading days immediately prior to the invitation date; (ii) the market price on the day immediately preceding the invitation date; or (iii) the market price at such other time as may be agreed with Her Majesty’s Revenue and Customs Options granted under the Sharesave Plan and the Irish Sub-Plan vest after 36 months and are generally only exercisable between 36 and 42 months from commencement of the related savings contract. These plans are compensatory and compensation expense is recognized over the requisite service period, and no more than 1,000,000 shares may be allocated under these plans. No awards have been granted under the Sharesave plans in Fiscal 2021 or Fiscal 2020. The significant assumptions utilized to estimate the weighted-average fair value of awards granted under the Sharesave Plans are as follows: Fiscal 2019 Share price $ 58.50 Exercise price $ 57.97 Risk free interest rate 3.0 % Expected term 3.7 years Expected volatility 44.4 % Dividend yield 2.6 % Fair value $ 18.07 The risk-free interest rate is based on the US Treasury (for US-based award recipients) or UK Gilt (for UK-based award recipients) yield curve in effect at the grant date with remaining terms equal to the expected term of the awards. The expected term utilized is based on the contractual vesting period of the awards, inclusive of any exercise period available to award recipients after vesting. The expected volatility is determined by calculating the historical volatility of Signet’s share price over the expected term of the awards. The Fiscal 2021 activity for awards granted under the Sharesave Plans is as follows: Sharesave Plans (in millions, except per share amounts) No. of Weighted Weighted Intrinsic (1) Outstanding at February 1, 2020 0.1 $ 54.78 1.1 years $ — Fiscal 2021 activity: Granted — — Exercised — — Lapsed or forfeited — — Outstanding at January 30, 2021 0.1 $ 51.30 0.8 years $ — Exercisable at February 1, 2020 — $ — $ — Exercisable at January 30, 2021 — $ — $ — (1) Intrinsic value for outstanding awards is based on the fair market value of Signet’s common stock on the last business day of the fiscal year. The following table summarizes additional information about awards granted under the Sharesave Plans: (in millions, except per share amounts) Fiscal 2019 Weighted average grant date fair value per share of awards granted $ 18.07 Total intrinsic value of options exercised $ — Cash received from share options exercised $ — |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Jan. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies Contingent property liabilities Approximately 17 property leases had been assigned in the UK by Signet at January 30, 2021 (and remained unexpired and occupied by assignees at that date) and approximately five additional properties were sub-leased in the US and UK at that date. Should the assignees or sub-tenants fail to fulfill any obligations in respect of those leases or any other leases which have at any other time been assigned or sub-leased, Signet or one of its subsidiaries may be liable for those defaults. The amount of such claims arising to date has not been material. Capital commitments At January 30, 2021 Signet had an immaterial amounts of capital commitments (February 1, 2020: $22.3 million). These commitments generally relate to store construction and capital investments in IT. Additionally, the Company has certain commitments to maintain or improve leased properties; however there are no minimum requirements or otherwise committed amounts for these projects as of January 30, 2021. Legal proceedings Employment practices As previously reported, in March 2008, a group of private plaintiffs (the “Claimants”) filed a class action lawsuit for an unspecified amount against SJI, a subsidiary of Signet, in the US District Court for the Southern District of New York alleging that US store-level employment practices are discriminatory as to compensation and promotional activities with respect to gender. In June 2008, the District Court referred the matter to private arbitration where the Claimants sought to proceed on a class-wide basis. The Claimants filed a motion for class certification and SJI opposed the motion. On February 2, 2015, the arbitrator issued a Class Determination Award in which she certified for a class-wide hearing Claimants’ disparate impact declaratory and injunctive relief class claim under Title VII, with a class period of July 22, 2004 through date of trial for the Claimants’ compensation claims and December 7, 2004 through date of trial for Claimants’ promotion claims. The arbitrator otherwise denied Claimants’ motion to certify a disparate treatment class alleged under Title VII, denied a disparate impact monetary damages class alleged under Title VII, and denied an opt-out monetary damages class under the Equal Pay Act. On February 9, 2015, Claimants filed an Emergency Motion To Restrict Communications With The Certified Class And For Corrective Notice. SJI filed its opposition to Claimants’ emergency motion on February 17, 2015, and a hearing was held on February 18, 2015. Claimants’ motion was granted in part and denied in part in an order issued on March 16, 2015. Claimants filed a Motion for Reconsideration Regarding Title VII Claims for Disparate Treatment in Compensation on February 11, 2015, which SJI opposed. April 27, 2015, the arbitrator issued an order denying the Claimants’ Motion. SJI filed with the US District Court for the Southern District of New York a Motion to Vacate the Arbitrator’s Class Certification Award on March 3, 2015, which Claimants opposed. On November 16, 2015, the US District Court for the Southern District of New York granted SJI’s Motion to Vacate the Arbitrator’s Class Certification Award in part and denied it in part. On December 3, 2015, SJI filed with the United States Court of Appeals for the Second Circuit SJI’s Notice of Appeal of the District Court’s November 16, 2015 Opinion and Order. On November 25, 2015, SJI filed a Motion to Stay the AAA Proceedings while SJI appealed the decision of the US District Court for the Southern District of New York to the United States Court of Appeals for the Second Circuit, which Claimants opposed. The arbitrator issued an order denying SJI’s Motion to Stay on February 22, 2016. SJI filed its Brief and Special Appendix with the Second Circuit on March 16, 2016. The matter was fully briefed, and oral argument was heard by the U.S. Court of Appeals for the Second Circuit on November 2, 2016. On April 6, 2015, Claimants filed in the AAA Claimants’ Motion for Clarification or in the Alternative Motion for Stay of the Effect of the Class Certification Award as to the Individual Intentional Discrimination Claims, which SJI opposed. On June 15, 2015, the arbitrator granted the Claimants’ motion. On March 6, 2017, Claimants filed Claimants’ Motion for Conditional Certification of Claimants’ Equal Pay Act Claims and Authorization of Notice, which SJI opposed The arbitrator heard oral argument on Claimants’ Motion on December 18, 2015 and, on February 29, 2016, issued an Equal Pay Act Collective Action Conditional Certification Award and Order Re Claimants’ Motion For Tolling Of EPA Limitations Period, conditionally certifying Claimants’ Equal Pay Act claims as a collective action, and tolling the statute of limitations on EPA claims to October 16, 2003 to ninety days after notice issued to the putative members of the collective action. SJI filed in the AAA a Motion To Stay Arbitration Pending The District Court’s Consideration Of Respondent’s Motion To Vacate Arbitrator’s Equal Pay Act Collective Action Conditional Certification Award And Order Re Claimants’ Motion For Tolling Of EPA Limitations Period on March 10, 2016. SJI filed in the AAA a Renewed Motion To Stay Arbitration Pending The District Court’s Resolution Of Sterling’s Motion To Vacate Arbitrator’s Equal Pay Act Collective Action Conditional Certification Award And Order Re Claimants’ Motion For Tolling Of EPA Limitations Period on March 31, 2016, which Claimants opposed. On April 5, 2016, the arbitrator denied SJI’s Motion. On March 23, 2016 SJI filed with the US District Court for the Southern District of New York a Motion To Vacate The Arbitrator’s Equal Pay Act Collective Action Conditional Certification Award And Order Re Claimants’ Motion For Tolling Of EPA Limitations Period, which Claimants opposed. SJI’s Motion was denied on May 22, 2016. On May 31, 2016, SJI filed a Notice Of Appeal of Judge Rakoff’s opinion and order to the Second Circuit Court of Appeals, which Claimant’s opposed. On June 1, 2017, the Second Circuit Court of Appeals dismissed SJI’s appeal for lack of appellate jurisdiction. Claimants filed a Motion For Amended Class Determination Award on November 18, 2015, and on March 31, 2016 the arbitrator entered an order amending the Title VII class certification award to preclude class members from requesting exclusion from the injunctive and declaratory relief class certified in the arbitration. The arbitrator issued a Bifurcated Case Management Plan on April 5, 2016 and ordered into effect the parties’ Stipulation Regarding Notice Of Equal Pay Act Collective Action And Related Notice Administrative Procedures on April 7, 2016. SJI filed in the AAA a Motion For Protective Order on May 2, 2016, which Claimants opposed. The matter was fully briefed, and oral argument was heard on July 22, 2016. The motion was granted in part on January 27, 2017. Notice to EPA collective action members was issued on May 3, 2016, and the opt-in period for these notice recipients closed on August 1, 2016. Approximately 10,314 current and former employees submitted consent forms to opt in to the collective action; however, some have withdrawn their consents. The number of valid consents is disputed and yet to be determined. SJI believes the number of valid consents to be approximately 9,124. On July 24, 2017, the United States Court of Appeals for the Second Circuit issued its unanimous Summary Order that held that the absent class members “never consented” to the Arbitrator determining the permissibility of class arbitration under the agreements, and remanded the matter to the District Court to determine whether the Arbitrator exceeded her authority by certifying the Title VII class that contained absent class members who had not opted in the litigation. On August 7, 2017, SJI filed its Renewed Motion to Vacate the Class Determination Award relative to absent class members with the District Court. The matter was fully briefed, and an oral argument was heard on October 16, 2017. On November 10, 2017, SJI filed in the arbitration motions for summary judgment, and for decertification, of Claimants’ Equal Pay Act and Title VII promotions claims. On January 30, 2018, oral argument on SJI’s motions was heard. On January 26, 2018, SJI filed in the arbitration a Motion to Vacate The Equal Pay Act Collective Action Award And Tolling Order asserting that the Arbitrator exceeded her authority by conditionally certifying the Equal Pay Act claim and allowing the absent claimants to opt-in the litigation. On March 12, 2018, the Arbitrator denied SJI’s Motion to Vacate The Equal Pay Act Collective Action Award and Tolling Order. SJI still has a pending motion seeking decertification of the EPA Collective Action before the Arbitrator. On March 19, 2018, the Arbitrator issued an Order partially granting SJI’s Motion to Amend the Arbitrator’s November 2, 2017, Bifurcated Seventh Amended Case Management Plan resulting in a continuance of the May 14, 2018 trial date. A new trial date has not been set. On January 15, 2018, District Court granted SJI’s August 17, 2017 Renewed Motion to Vacate the Class Determination Award finding that the Arbitrator exceeded her authority by binding non-parties (absent class members) to the Title VII claim. The District Court further held that the RESOLVE Agreement does not permit class action procedures, thereby, reducing the Claimants in the Title VII matter from 70,000 to potentially 254. Claimants disputed that the number of claimants in the Title VII is 254. On January 18, 2018, the Claimants filed a Notice of Appeal with the United States Court of Appeals for the Second Circuit. The appeal was fully briefed and oral argument before the Second Circuit occurred on May 7, 2018. On May 17, 2019, SJI submitted a Rule 28(j) letter to the Second Circuit addressing the effects of the Supreme Court’s ruling in Lamps Plus, Inc. v. Varela, No. 17-988 (S. Ct. Apr. 24, 2019), on the pending appeal. The Second Circuit then issued an order directing the parties to submit additional arguments on that issue, which were submitted. On November 18, 2019 the Second Circuit issued an order reversing and remanding the District Court’s January 15, 2018 Order that vacated the Arbitrator’s Class Determination Award certifying for declaratory and injunctive relief a Title VII pay and promotions class of female retail sales employees. The Second Circuit held that the District Court erred when it concluded that the Arbitrator exceeded her authority in purporting to bind absent class members to the Class Determination Award. The Second Circuit remanded the case to the District Court to decide the narrower question of whether the Arbitrator erred in certifying an opt-out, as opposed to a mandatory, class for declaratory and injunctive relief. On December 2, 2019, SJI filed a petition for a hearing en banc with the United States Court of Appeals for the Second Circuit. On January 15, 2020, SJI filed a Rule 28(j) letter in the Second Circuit. On that same day the Second Circuit denied the petition for rehearing en banc . On January 21, 2020, Sterling filed its motion for stay of mandate with the Second Circuit pending the filing of a petition for writ of certiorari with the U.S. Supreme Court. On January 22, 2020, the Second Circuit granted Sterling’s motion for stay of mandate. SJI’s petition for a writ of certiorari from the U.S. Supreme Court was denied on October 5, 2020. On January 27, 2021 the District Court ordered the case remanded to the AAA for further proceedings in arbitration. SJI denies the allegations of the Claimants and has been defending the case vigorously. At this point, no outcome or possible loss or range of losses, if any, arising from the litigation is able to be determined or estimated. As previously reported, on May 5, 2017, without any findings of liability or wrongdoing, SJI entered into a Consent Decree with the EEOC settling a previously disclosed lawsuit that alleged that SJI engaged in intentional and disparate impact gender discrimination with respect to pay and promotions of female retail store employees since January 1, 2003. On May 5, 2017 the U.S. District Court for the Western District of New York approved and entered the Consent Decree jointly proposed by the EEOC and SJI, resolving all of the EEOC’s claims against SJI in this litigation for various injunctive relief including but not limited to the appointment of an employment practices expert to review specific policies and practices, a compliance officer to be employed by SJI, as well as obligations relative to training, notices, reporting and record-keeping. The Consent Decree does not require an outside third-party monitor or require any monetary payment. The duration of the Consent Decree was three years and three months, expiring on August 4, 2020. On March 6, 2020, SJI and the EEOC filed their Joint Motion to Approve an Amendment to And Extension of the Term of the Consent Decree, which provides for a limited extension of a few aspects of the Consent Decree terms regarding SJI’s compensation practices, and incorporating its implementation of a new retail team member compensation program into the overall Consent Decree framework. This extension will enable SJI to implement changes to its retail team member compensation strategy and validate that the new program is consistent with the overall purposes of the Consent Decree. On March 11, 2020 the U.S. District Court for the Western District of New York granted the joint motion and entered the parties’ Amendment to And Extension of the Term of the Consent Decree. The term of the amended Consent Decree expires on November 4, 2021. Shareholder Actions As previously reported, in August 2016, two alleged Company shareholders each filed a putative class action complaint in the United States District Court for the Southern District of New York against the Company and its then-current Chief Executive Officer and current Chief Financial Officer (Nos. 16-cv-6728 and 16-cv-6861, the “S.D.N.Y. cases”). In 2017, three other Company shareholders each filed putative class action complaints (Nos. 17-cv-875, 17-cv-923, and 17-cv-9853) which were ultimately consolidated with the S.D.N.Y. cases under case number 16-cv-6728 (the “Consolidated Action”). The Consolidated Action was settled as further described below. The Consolidated Action alleged that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by, among other things, misrepresenting the Company’s business and earnings by making misleading statements about the Company’s credit portfolio and failing to disclose reports of sexual harassment allegations that were raised by claimants in an ongoing pay and promotion gender discrimination class arbitration. On March 15, 2019, the lead plaintiff moved for appointment of a class representative and class counsel and for certification of a class period of August 29, 2013, through March 13, 2018. On July 10, 2019, the Court granted the motion and certified a class of all persons and entities who purchased or otherwise acquired Signet common stock from August 29, 2013 to May 25, 2017. The Court also appointed a class representative and class counsel. On July 24, 2019, the defendants filed with the United States Court of Appeals for the Second Circuit a petition for permission to appeal the District Court’s class certification decision. On March 16, 2020, the Company, all of the other defendant parties to the Consolidated Action, and the lead plaintiff entered into a settlement agreement in the Consolidated Action. The settlement of $240 million provides for the dismissal of the Consolidated Action with prejudice. The settlement agreement also states that the Company and all the other defendants expressly deny any and all allegations of fault, liability, wrongdoing, or damages whatsoever, and that defendants are entering into the settlement solely to eliminate the uncertainty, burden, and expense of further protracted litigation. As a result of the settlement, the Company recorded a charge of $33.2 million during the fourth quarter of Fiscal 2020 in other operating income (loss), which includes administration costs of $0.6 million and is recorded net of expected recoveries from the Company’s insurance carriers of $207.4 million. As of February 1, 2020, the liability related to settlement and administration fees was recorded in other current liabilities, and the expected insurance recoveries are recorded in other current assets in the consolidated balance sheets. The settlement was fully funded in the second quarter of Fiscal 2021, and the Company contributed approximately $35 million of the $240 million settlement payment, net of insurance proceeds and including the impact of foreign currency. The Court granted final approval of the settlement on July 21, 2020. In 2019, four actions were filed in the U.S. District Court for the Southern District of New York by investment funds that allegedly purchased the Company’s stock (Nos. 19-cv-2757, 19-cv-2758, 19-cv-9916 and 19-cv-9917), and name the Company and its current and former Chief Executive Officers and Chief Financial Officers as defendants. All four complaints allege violations of Sections 10(b), 18, and 20(a) of the Securities Exchange Act of 1934, and common law fraud largely based on the same allegations as the Consolidated Action. Soon thereafter the Court entered orders staying these actions until entry of final judgment in the Consolidated Action. On June 27, 2020, the Company and plaintiffs in the four stayed actions above reached a settlement in principle, which was finalized on July 10, 2020 requiring the Opt-Out Plaintiffs to rejoin the Consolidated Action. The Company recorded a pre-tax charge of $7.5 million, net of expected insurance recovery, during Fiscal 2021 in anticipation of those four settlements. The final amount of the settlement and net charge are dependent upon the amount the Opt-Out Plaintiffs receive as part of the Consolidated Action and is not expected to be materially different than the amounts recorded. The initial portion of the settlement due to the Opt-Out Plaintiffs under the settlement agreement was paid in August 2020. Regulatory Matters As previously reported, on January 16, 2019, Sterling Jewelers Inc., (“Sterling”), a wholly owned subsidiary of Company, without admitting or denying any of the allegations, findings of fact, or conclusions of law (except to establish jurisdiction), entered into a Consent Order with the Consumer Financial Protection Bureau (the "CFPB") and New York Attorney General (the “NY AG”) settling a previously disclosed investigation of certain in-store credit practices, promotions, and payment protection products (the "Consent Order"). Among other things, the Consent Order requires Sterling to (i) submit an accurate written compliance report to the CFPB; (ii) pay a $10,000,000 civil money penalty to the CFPB; (iii) pay a $1,000,000 civil money penalty to the NY AG: and (iv) maintain policies and procedures related to the issuance of credit cards, including with respect to credit applications, credit financing terms and conditions, and any related add-on products that are reasonably designed to ensure consumer knowledge or consent. All payments required by the Consent Order were made in February 2019. The Company has complied, and will continue to work to ensure compliance, with the Consent Order, which may result in us incurring additiona l costs. |
Organization and summary of s_2
Organization and summary of significant accounting policies (Policies) | 12 Months Ended |
Jan. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of preparation | Basis of preparationThe consolidated financial statements of Signet are prepared in accordance with US generally accepted accounting principles (“US GAAP” or “GAAP”) and include the results for the 52 week period ended January 30, 2021 (“Fiscal 2021”), as Signet’s fiscal year ends on the Saturday nearest to January 31. The comparative periods are for the 52 week period ended February 1, 2020 (“Fiscal 2020”) and the 52 week period ended February 2, 2019 (“Fiscal 2019”). Intercompany transactions and balances have been eliminated in consolidation. Signet has reclassified certain prior year amounts to conform to the current year presentation. |
Risks and Uncertainties - COVID-19 | Risks and Uncertainties - COVID-19 In December 2019, a novel coronavirus (“COVID-19”) was identified in Wuhan, China. In March 2020, the World Health Organization declared COVID-19 a global pandemic as a result of the further spread of the virus into all regions of the world, including those regions where the Company’s primary operations occur in North America and the UK. COVID-19 has significantly impacted consumer traffic and the Company’s retail sales, based on the perceived public health risk and government-imposed quarantines and restrictions of public gatherings and commercial activity to contain spread of the virus. Effective March 23, 2020, the Company temporarily closed all of its stores in North America, its diamond operations in New York and its support centers in the US. Additionally, effective March 24, 2020, the Company temporarily closed all of its stores in the UK. The COVID-19 pandemic has also disrupted the Company’s global supply chain, including the temporary closure of the Company’s diamond polishing operations in Botswana, and may cause additional disruptions to operations if employees of the Company become sick, are quarantined, or are otherwise limited in their ability to work at Company locations or travel for business. The Company continued to fill eCommerce orders during the temporary closure period of all stores. Beginning in the second quarter of Fiscal 2021, the Company began a measured approach to re-opening its stores, and by the end of the third quarter of Fiscal 2021 had re-opened substantially all of its stores. During the fourth quarter of Fiscal 2021, both the UK and certain Canadian provinces re-established mandated temporary closure of non-essential businesses. Canadian stores began re-opening periodically in February 2021 as provincial restrictions began to be lifted, and the UK stores are expected to open in April 2021. In addition, as a result of the uncertainty surrounding the impacts of COVID-19, beginning in March 2020, there was a significant decline in all major domestic and global financial market indicators. The Company’s share price and market capitalization significantly declined during the first half of Fiscal 2021 and while there has been substantial recovery, the sustainability of this recovery is still unpredictable in light of the current economic conditions and risks to the retail markets from COVID-19. The full extent and duration of the impact of COVID-19 on the Company’s operations and financial performance is currently unknown and depends on future developments that are uncertain and unpredictable, including the duration and possible resurgence of the pandemic, the success of the vaccine rollout globally, its impact on capital and financial markets on a macro-scale and the actions to contain the virus or mitigate its impact, among others. While the full extent of the impact of COVID-19 is currently unknown, it had a significant impact on Signet’s results of operations and cash flows during the first half of Fiscal 2021. However, management currently believes that it has adequate liquidity and business plans to continue to operate the business and mitigate the risks associated with COVID-19 for the 12 months following the date of this report. As a result of the potential risks identified related to COVID-19 on its consolidated financial statements, the Company considered and performed the following assessments during Fiscal 2021: impairment assessments for goodwill, indefinite-lived intangible assets and |
Use of estimates | Use of estimates The preparation of these consolidated financial statements, in conformity with US GAAP and US Securities and Exchange Commission (“SEC”) regulations, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates, and as a result of the above noted risks associated with COVID-19, it is reasonably possible that those estimates will change in the near term and the effect could be material. Estimates and assumptions are primarily made in relation to the valuation of accounts receivables, inventories, deferred revenue, derivatives, employee benefits, income taxes, contingencies, leases, asset impairments for goodwill, indefinite-lived intangible and long-lived assets and the depreciation and amortization of long-lived assets. The reported results of operations are not indicative of results expected in future periods. |
Foreign currency translation | Foreign currency translationThe financial position and operating results of certain foreign operations, including the International segment and the Canadian operations of the North America segment, are consolidated using the local currency as the functional currency. Assets and liabilities are translated at the rates of exchange on the balance sheet date, and revenues and expenses are translated at the monthly average rates of exchange during the period. Resulting translation gains or losses are included in the accompanying consolidated statements of shareholders’ equity as a component of accumulated other comprehensive income (loss) (“AOCI”). Gains or losses resulting from foreign currency transactions are included within other operating income (loss) in the consolidated statements of operations, whereas translation adjustments and gains or losses related to intercompany loans of a long-term investment nature are recognized as a component of AOCI. |
Revenue recognition | Revenue recognition The Company applies a five-step approach in determining the amount and timing of revenue to be recognized: (1) identifying the contract with a customer; (2) identifying the performance obligations in the contract; (3) determining the transaction price; (4) allocating the transaction price to the performance obligations in the contract; and (5) recognizing revenue when the corresponding performance obligation is satisfied. |
Cost of sales and selling, general and administrative expenses | Cost of sales and selling, general and administrative expenses Cost of sales includes merchandise costs net of discounts and allowances; freight, processing and distribution costs; inventory shrinkage; and store operating and occupancy costs. Store operating and occupancy costs include utilities, rent, real estate taxes, common area maintenance charges and depreciation. Selling, general and administrative expenses include store staff and store administrative costs; centralized administrative expenses, including information technology; third-party credit costs and credit loss expense; advertising and promotional costs and other operating expenses not specifically categorized elsewhere in the consolidated statements of operations. |
Store opening costs | (g) Store opening costs The opening costs of new locations are expensed as incurred and included within selling, general and administrative expenses. |
Advertising and promotional costs | Advertising and promotional costsAdvertising and promotional costs are expensed within selling, general and administrative expenses. Production costs are expensed at the first communication of the advertisements, while communication expenses are recognized each time the advertisement is communicated. For catalogs and circulars, costs are all expensed at the first date they can be viewed by the customer. Point of sale promotional material is expensed when first displayed in the stores. |
Income taxes | Income taxesIncome taxes are accounted for using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements. Under this method, deferred tax assets and liabilities are recognized by applying statutory tax rates in effect in the years in which the differences between the financial reporting and tax filing bases of existing assets and liabilities are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. A valuation allowance is established against deferred tax assets when it is more likely than not that all or a portion of the deferred tax assets will not be realized, based on management’s evaluation of all available evidence, both positive and negative, including reversals of deferred tax liabilities, projected future taxable income and results of recent operations. The Company does not recognize tax benefits related to positions taken on certain tax matters unless the position is more likely than not to be sustained upon examination by tax authorities. At any point in time, various tax years are subject to or are in the process of being audited by various taxing authorities. The Company records a reserve for uncertain tax positions, including interest and penalties. To the extent that management’s estimates of settlements change, or the final tax outcome of these matters is different than the amounts recorded, such differences will impact the income tax provision in the period in which such determinations are made. |
Cash and cash equivalents | Cash and cash equivalentsCash and cash equivalents are comprised of cash on hand, money market deposits and amounts placed with external fund managers with an original maturity of three months or less. Cash and cash equivalents are carried at cost which approximates fair value. In addition, receivables from third-party credit card issuers typically converted to cash within five days of the original sales transaction are considered cash equivalents. |
Accounts receivable | Accounts receivablePrior to the adoption of Accounting Standards Codification (“ASC”) 326 (as further described in Note 13), accounts receivable under the customer finance programs were presented net of an allowance for uncollectible amounts. This allowance represented management’s estimate of the expected losses in the accounts receivable portfolio as of the balance sheet date, and was calculated using a model that analyzed factors such as delinquency rates and recovery rates. In June 2018, the Company completed the sale of the remaining North America customer in-house finance receivables (see Note 4). Subsequent to the completion of this transaction, receivables issued by the Company but pending transfer are classified as “held for sale” and recorded at fair value in the consolidated balance sheet. See Note 21 for additional information regarding the assumptions utilized in the calculation of fair value of the finance receivables held for sale. |
Inventories | Inventories Inventories are primarily held for resale and are valued at the lower of cost or net realizable value. Cost is determined using weighted-average cost, on a first-in first-out basis, for all inventories except for inventories held in the Company’s diamond sourcing operations, where cost is determined using specific identification. Cost includes charges directly related to bringing inventory to its present location and condition. Such charges would include warehousing, security, distribution and certain buying costs. Net realizable value is defined as estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Inventory reserves are recorded for obsolete, slow moving or defective items and shrinkage. Inventory reserves for obsolete, slow moving or defective items are calculated as the difference between the cost of inventory and its estimated market value based on targeted inventory turn rates, future demand, management strategy and market conditions. Due to the inventory being primarily comprised of precious stones and metals including gold, the age of the inventory has a limited impact on the estimated market value. Inventory reserves for shrinkage are estimated and recorded based on historical physical inventory results, expectations of future inventory losses and current inventory levels. Physical inventories are taken at least once annually for all store locations and distribution centers. |
Vendor contributions | Vendor contributionsContributions are received from vendors through various programs and arrangements including cooperative advertising. Where vendor contributions related to identifiable promotional events are received, contributions are matched against the costs of promotions. Vendor contributions received as general contributions and not related to specific promotional events are recognized as a reduction of inventory costs. |
Property, plant and equipment | Property, plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation, amortization and impairment charges. Maintenance and repair costs are expensed as incurred. Depreciation and amortization are recognized on the straight-line method over the estimated useful lives of the related assets as follows: Buildings Ranging from 30 – 40 years Leasehold improvements Remaining term of lease, not to exceed 10 years Furniture and fixtures Ranging from 3 – 10 years Equipment and software Ranging from 3 – 7 years Computer software purchased or developed for internal use is stated at cost less accumulated amortization. Signet’s policy provides for the capitalization of external direct costs of materials and services associated with developing or obtaining internal use computer software. In addition, Signet also capitalizes certain payroll and payroll-related costs for employees directly associated with internal use computer projects. Amortization is charged on a straight-line basis over periods from three |
Goodwill and intangibles | Goodwill and intangibles In a business combination, the Company estimates and records the fair value of all assets acquired and liabilities assumed, including identifiable intangible assets and liabilities. The fair value of these intangible assets and liabilities is estimated based on management’s assessment, including selection of appropriate valuation techniques, inputs and assumptions in the determination of fair value. Significant estimates in valuing intangible assets and liabilities acquired include, but are not limited to, future expected cash flows associated with the acquired asset or liability, expected life and discount rates. The excess purchase price over the estimated fair values of the assets acquired and liabilities assumed is recognized as goodwill. Goodwill is recorded by the Company’s reporting units based on the acquisitions made by each. Goodwill and other indefinite-lived intangible assets, such as indefinite-lived trade names, are evaluated for impairment annually. Additionally, if events or conditions were to indicate the carrying value of a reporting unit or an indefinite-lived intangible asset may be greater than its fair value, the Company would evaluate the asset for impairment at that time. Impairment testing compares the carrying amount of the reporting unit or other intangible assets with its fair value. When the carrying amount of the reporting unit or other intangible assets exceeds its fair value, an impairment charge is recorded. Intangible assets with definite lives are amortized and reviewed for impairment whenever events or circumstances indicate that the carrying amount of the asset may not be recoverable. If the estimated undiscounted future cash flows related to the asset are less than the carrying amount, the Company recognizes an impairment charge equal to the difference between the carrying value and the estimated fair value, usually determined by the estimated discounted future cash flows of the asset. |
Derivatives and hedge accounting | Derivatives and hedge accounting The Company enters into various types of derivative instruments to mitigate certain risk exposures related to changes in commodity costs and foreign exchange rates. Derivative instruments are recorded in the consolidated balance sheets at fair value, as either assets or liabilities, with an offset to net income or other comprehensive income (“OCI”), depending on whether the derivative qualifies as an effective hedge. If a derivative instrument meets certain criteria, the Company designates it as a cash flow hedge within the fiscal quarter it is entered into. For effective cash flow hedge transactions, the changes in fair value of the derivative instrument is recognized directly in equity as a component of AOCI and is recognized in the consolidated statements of operations in the same period(s) and on the same financial statement line in which the hedged item affects net income. Gains and losses on derivatives that do not qualify for hedge accounting are recognized immediately in other operating income (loss). In the normal course of business, the Company may terminate cash flow hedges prior to the occurrence of the underlying forecasted transaction. For cash flow hedges terminated prior to the occurrence of the underlying forecasted transaction, management monitors the probability of the associated forecasted cash flow transactions to assess whether any gain or loss recorded in AOCI should be immediately recognized in net income. Cash flows from derivative contracts are included in net cash provided by operating activities. |
Employee Benefits | Employee Benefits The funded status of the defined benefit pension plan in the UK (the “UK Plan”) is recognized on the consolidated balance sheets, and is the difference between the fair value of plan assets and the projected benefit obligation measured at the balance sheet date. Gains or losses and prior service costs or credits that arise and are not included as components of net periodic pension cost are recognized, net of tax, in OCI. Signet also operates a defined contribution plan in the UK, a defined contribution retirement savings plan in the US, and an executive deferred compensation plan in the US. Contributions made by Signet to these benefit arrangements are charged primarily to selling, general and administrative expenses in the consolidated statements of operations as incurred. |
Debt issuance costs | Debt issuance costs Borrowings include primarily interest-bearing bank loans and bank overdrafts. Direct debt issuance costs on borrowings are capitalized and amortized into interest expense over the contractual term of the related loan. |
Share-based compensation | Share-based compensation Signet measures share-based compensation cost for awards classified as equity at the grant date based on the estimated fair value of the award and recognizes the cost as an expense on a straight-line basis (net of estimated forfeitures) over the requisite service period of employees. Certain share awards under the Company’s plans include a condition whereby vesting is contingent on Company performance exceeding a given target, and therefore awards granted with this condition are considered to be performance-based awards. Signet estimates fair value using a Black-Scholes model for awards granted under the Omnibus Plan and the binomial valuation model for awards granted under the Share Saving Plans. Deferred tax assets for awards that result in deductions on the income tax returns of subsidiaries are recorded by Signet based on the amount of compensation cost recognized and the subsidiaries’ statutory tax rate in the jurisdiction in which it will receive a deduction. Share-based compensation is primarily recorded in selling, general and administrative expenses in the consolidated statements of operations, consistent with the relevant salary cost. |
Contingent liabilities | Contingent liabilities Provisions for contingent liabilities are recorded for probable losses when management is able to reasonably estimate the loss or range of loss. When it is reasonably possible that a contingent liability may result in a loss or additional loss, the range of the potential loss is disclosed. |
Dividends | Dividends Dividends on common shares are reflected as a reduction of retained earnings in the period in which they are formally declared by the Board of Directors (the “Board”). In addition, the cumulative dividends on preferred shares are reflected as a reduction of retained earnings in the period in which they are declared by the Board, as are the deemed dividends resulting from the accretion of issuance costs related to the preferred shares. |
New accounting pronouncements | New accounting pronouncements recently adopted The following ASU’s were adopted as of February 2, 2020. The impact on the Company's consolidated financial statements is described within the table below: Standard Description ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software: Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, issued July 2018. Aligns the requirements for capitalizing implementation costs in cloud computing arrangements with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The adoption of this ASU did not have a material impact on the Company’s financial position or results of operations. ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Topic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans, issued August 2018. Modifies the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans and clarifies the disclosure requirements regarding projected benefit obligations and accumulated benefit obligations. The ASU is effective for fiscal years ending after December 15, 2020, with early adoption permitted. The new guidance does not affect the existing recognition or measurement guidance, and therefore had no impact on the Company’s financial condition or results of operations. ASU No. 2018-13, Fair Value Measurements (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, issued August 2018. Modifies the disclosure requirements on fair value measurements in Topic 820 and eliminates ‘at a minimum’ from the phrase ‘an entity shall disclose at a minimum’ to promote the appropriate exercise of discretion by entities when considering fair value disclosures and to clarify that materiality is an appropriate consideration. The adoption of this ASU did not have a material impact on the Company’s financial position or results of operations. ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, issued June 2016. Requires entities to measure and recognize expected credit losses for financial assets measured at amortized cost basis. The estimate of expected credit losses should consider historical information, current information, and reasonable and supportable forecasts of expected losses over the remaining contractual life that affect collectability. The adoption of this ASU did not have a material impact on the Company’s financial position or results of operations upon adoption; however, this ASU impacts the accounting for expected credit losses on the Company’s non-prime customer in-house finance receivables (as discussed in Note 13). In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU is intended to reduce complexity in the accounting for income taxes while maintaining or improving the usefulness of information provided to financial statement users. The guidance amends certain existing provisions under ASC 740 to address a number of distinct items. This standard is effective for public companies in fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period for which financial statements have not yet been issued. Depending on the amendment, adoption may be applied on the retrospective, modified retrospective or prospective basis. The Company has elected to early adopt this ASU effective August 2, 2020 on a prospective basis. The adoption of this ASU did not have a material impact on the Company’s financial position or results of operations upon adoption. |
Organization and summary of s_3
Organization and summary of significant accounting policies (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of cash and cash equivalents | The following table summarizes the details of the Company’s cash and cash equivalents: (in millions) January 30, 2021 February 1, 2020 Cash and cash equivalents held in money markets and other accounts $ 1,122.2 $ 326.2 Cash equivalents from third-party credit card issuers 48.8 46.3 Cash on hand 1.5 2.0 Total cash and cash equivalents $ 1,172.5 $ 374.5 |
Schedule of cash flow, supplemental disclosures | The Company’s supplemental cash flow information was as follows: (in millions) Fiscal 2021 Fiscal 2020 Fiscal 2019 Non-cash investing activities: Capital expenditures in accounts payable $ 1.2 $ 0.1 $ 5.6 Supplemental cash flow information: Interest paid $ 30.5 $ 34.7 $ 39.1 Income tax paid (refunded), net (1) $ (176.0) $ 5.7 $ (44.8) (1) Includes $183.4 million refunded under the CARES Act in Fiscal 2021. See Note 11 for further details. |
Schedule of property, plant and equipment | Depreciation and amortization are recognized on the straight-line method over the estimated useful lives of the related assets as follows: Buildings Ranging from 30 – 40 years Leasehold improvements Remaining term of lease, not to exceed 10 years Furniture and fixtures Ranging from 3 – 10 years Equipment and software Ranging from 3 – 7 years (in millions) January 30, 2021 February 1, 2020 Land and buildings $ 21.8 $ 23.4 Leasehold improvements 616.9 640.7 Furniture and fixtures 669.9 601.2 Equipment 122.4 199.1 Software 334.2 246.9 Construction in progress 38.4 95.3 Total $ 1,803.6 $ 1,806.6 Accumulated depreciation and amortization (1,198.1) (1,064.7) Property, plant and equipment, net $ 605.5 $ 741.9 |
Revenue recognition (Tables)
Revenue recognition (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables provide the Company’s total sales, disaggregated by banner, for Fiscal 2021, Fiscal 2020 and Fiscal 2019: Fiscal 2021 (in millions) North America International Other Consolidated Sales by banner: Kay $ 2,008.6 $ — $ — $ 2,008.6 Zales 1,121.6 — — 1,121.6 Jared 920.9 — — 920.9 Piercing Pagoda 337.5 — — 337.5 James Allen 301.4 — — 301.4 Peoples 150.9 — — 150.9 International segment banners — 355.9 — 355.9 Other (1) — — 30.1 30.1 Total sales $ 4,840.9 $ 355.9 $ 30.1 $ 5,226.9 Fiscal 2020 (in millions) North America International Other Consolidated Sales by banner: Kay $ 2,414.0 $ — $ — $ 2,414.0 Zales 1,276.8 — — 1,276.8 Jared 1,088.1 — — 1,088.1 Piercing Pagoda 331.7 — — 331.7 James Allen 250.6 — — 250.6 Peoples 204.6 — — 204.6 International segment banners — 518.0 — 518.0 Other (1) — — 53.3 53.3 Total sales $ 5,565.8 $ 518.0 $ 53.3 $ 6,137.1 Fiscal 2019 (in millions) North America International Other Consolidated Sales by banner: Kay $ 2,475.2 $ — $ — $ 2,475.2 Zales 1,280.5 — — 1,280.5 Jared 1,141.4 — — 1,141.4 Piercing Pagoda 302.5 — — 302.5 James Allen 223.7 — — 223.7 Peoples 218.4 — — 218.4 International segment banners — 576.5 — 576.5 Other (1) — — 28.9 28.9 Total sales $ 5,641.7 $ 576.5 $ 28.9 $ 6,247.1 (1) Includes sales from Signet’s diamond sourcing initiative. The following tables provide the Company’s total sales, disaggregated by major product, for Fiscal 2021, Fiscal 2020 and Fiscal 2019: Fiscal 2021 (in millions) North America International Other Consolidated Sales by product: Bridal $ 2,140.5 $ 166.4 $ — $ 2,306.9 Fashion 1,987.9 69.2 — 2,057.1 Watches 145.6 108.5 — 254.1 Other (1) 566.9 11.8 30.1 608.8 Total sales $ 4,840.9 $ 355.9 $ 30.1 $ 5,226.9 Fiscal 2020 (in millions) North America International Other Consolidated Sales by product: Bridal $ 2,403.4 $ 214.3 $ — $ 2,617.7 Fashion 2,131.0 110.5 — 2,241.5 Watches 214.9 169.1 — 384.0 Other (1) 816.5 24.1 53.3 893.9 Total sales $ 5,565.8 $ 518.0 $ 53.3 $ 6,137.1 Fiscal 2019 (in millions) North America International Other Consolidated Sales by product: Bridal $ 2,478.6 $ 234.0 $ — $ 2,712.6 Fashion 2,128.1 126.3 — 2,254.4 Watches 238.2 190.9 — 429.1 Other (1) 796.8 25.3 28.9 851.0 Total sales $ 5,641.7 $ 576.5 $ 28.9 $ 6,247.1 (1) Other revenue primarily includes gift and other miscellaneous jewelry sales, extended service plans, repairs and other miscellaneous non-jewelry sales. The following tables provide the Company’s total sales, disaggregated by channel, for Fiscal 2021, Fiscal 2020 and Fiscal 2019: Fiscal 2021 (in millions) North America International Other Consolidated Sales by channel: Store $ 3,772.9 $ 238.9 $ — $ 4,011.8 eCommerce 1,068.0 117.0 — 1,185.0 Other (1) — — 30.1 30.1 Total sales $ 4,840.9 $ 355.9 $ 30.1 $ 5,226.9 Fiscal 2020 (in millions) North America International Other Consolidated Sales by channel: Store $ 4,880.2 $ 453.2 $ — $ 5,333.4 eCommerce 685.6 64.8 — 750.4 Other (1) — — 53.3 53.3 Total sales $ 5,565.8 $ 518.0 $ 53.3 $ 6,137.1 Fiscal 2019 (in millions) North America International Other Consolidated Sales by channel: Store $ 5,022.4 $ 513.4 $ — $ 5,535.8 eCommerce 619.3 63.1 — 682.4 Other (1) — — 28.9 28.9 Total sales $ 5,641.7 $ 576.5 $ 28.9 $ 6,247.1 (1) Includes sales from Signet’s diamond sourcing initiative. |
Unamortized Deferred Selling Costs | Unamortized deferred selling costs as of Fiscal 2021 and Fiscal 2020 were as follows: (in millions) January 30, 2021 February 1, 2020 Deferred ESP selling costs Other current assets $ 26.2 $ 23.6 Other assets 85.1 80.0 Total deferred ESP selling costs $ 111.3 $ 103.6 |
Summary of Deferred Revenue | Deferred revenue is comprised primarily of ESP and voucher promotions as follows: (in millions) January 30, 2021 February 1, 2020 ESP deferred revenue $ 1,028.9 $ 960.0 Voucher promotions and other 43.1 37.7 Total deferred revenue $ 1,072.0 $ 997.7 Disclosed as: Current liabilities $ 288.7 $ 266.2 Non-current liabilities 783.3 731.5 Total deferred revenue $ 1,072.0 $ 997.7 (in millions) Fiscal 2021 Fiscal 2020 ESP deferred revenue, beginning of period $ 960.0 $ 927.6 Plans sold (1) 337.4 405.1 Revenue recognized (2) (268.5) (372.7) ESP deferred revenue, end of period $ 1,028.9 $ 960.0 (1) Includes impact of foreign exchange translation. (2) During Fiscal 2021 and Fiscal 2020, the Company recognized sales of approximately $163.5 million and $193.6 million, respectively, related to deferred revenue that existed at the beginning of the year in respect to ESP and voucher promotions. Additionally, no ESP revenue was recognized beginning on March 23, 2020 due to the temporary closure of the Company’s stores and service centers as a result of COVID-19. As the Company began reopening stores and service centers during the second quarter of Fiscal 2021, the Company resumed recognizing service revenue as it fulfilled its performance obligations under the ESP. |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting Information, By Segment | (in millions) Fiscal 2021 Fiscal 2020 Fiscal 2019 Sales: North America segment (1) $ 4,840.9 $ 5,565.8 $ 5,641.7 International segment 355.9 518.0 576.5 Other segment 30.1 53.3 28.9 Total sales $ 5,226.9 $ 6,137.1 $ 6,247.1 Operating income (loss): North America segment (2) $ 57.9 $ 284.9 $ (666.0) International segment (3) (43.3) 9.0 4.4 Other segment (4) (0.3) (15.9) (11.7) Corporate and unallocated expenses (5) (72.0) (119.7) (91.3) Total operating income (loss) (57.7) 158.3 (764.6) Interest expense (32.0) (35.6) (39.7) Other non-operating income, net — 7.0 1.7 Income (loss) before income taxes $ (89.7) $ 129.7 $ (802.6) Depreciation and amortization: North America segment $ 163.7 $ 159.9 $ 165.8 International segment 12.0 17.8 17.5 Other segment 0.3 0.3 0.3 Total depreciation and amortization $ 176.0 $ 178.0 $ 183.6 Capital additions: North America segment $ 79.0 $ 128.3 $ 123.9 International segment 4.0 8.0 9.6 Other segment — — — Total capital additions $ 83.0 $ 136.3 $ 133.5 (1) Sales include sales of $150.9 million, $204.6 million and $218.3 million generated by Canadian operations in Fiscal 2021, Fiscal 2020 and Fiscal 2019, respectively. (2) Fiscal 2021 includes: 1) $1.6 million related to inventory charges recorded in conjunction with the Company’s restructuring activities; 2) $36.0 million primarily related to severance, professional fees and store closure costs recorded in conjunction with the Company’s restructuring activities; and 3) asset impairment charges of $136.7 million. Fiscal 2020 includes: 1) $6.0 million related to inventory charges recorded in conjunction with the Company’s restructuring activities; 2) $42.1 million primarily related to severance, professional fees and store closure costs recorded in conjunction with the Company’s restructuring activities; and 3) asset impairment charges of $47.7 million. Fiscal 2019 includes: 1) $52.7 million related to inventory charges recorded in conjunction with the Company’s restructuring activities; 2) $44.9 million primarily related to severance, professional fees and store closure costs recorded in conjunction with the Company’s restructuring activities; 3) asset impairment charges of $731.8 million; and 4) $160.4 million from the valuation losses related to the sale of eligible non-prime in-house accounts receivable. See Note 6, Note 18 and Note 16 for additional information. (3) Fiscal 2021 includes: 1) $9.7 million primarily related to severance and store closure costs recorded in conjunction with the Company’s restructuring activities; and 2) asset impairment charges of $22.3 million. Fiscal 2020 includes $7.0 million primarily related to severance and store closure costs recorded in conjunction with the Company’s restructuring activities. Fiscal 2019 includes: 1) $8.5 million primarily related to severance and store closure costs recorded in conjunction with the Company’s restructuring activities; and 2) $3.8 million related to inventory charges recorded in conjunction with the Company’s restructuring activities. See Note 6 and Note 16 for additional information. (4) Fiscal 2021 includes $0.2 million benefit recognized due to a change in inventory reserves previously recognized as part of the Company’s restructuring activities. Fiscal 2020 includes $3.2 million related to inventory charges recorded in conjunction with the Company’s restructuring activities. Fiscal 2019 includes: 1) $5.7 million related to inventory charges recorded in conjunction with the Company’s restructuring activities; and 2) asset impairment charges of $3.6 million. See Note 6 and Note 18 for additional information. (5) Fiscal 2021 includes: 1) charges of $7.5 million related to the settlement of previously disclosed shareholder litigation matters, net of expected insurance proceeds; and 2) $0.5 million related to charges recorded in conjunction with the Company’s restructuring activities. Fiscal 2020 includes: 1) charges of $33.2 million related to the settlement of previously disclosed shareholder litigation matters, inclusive of expected insurance proceeds; and 2) $20.8 million related to charges recorded in conjunction with the Company’s restructuring activities. Fiscal 2019 includes: 1) $10.3 million related to charges recorded in conjunction with the Company’s restructuring activities; 2) $11.0 million related to the resolution of a previously disclosed regulatory matter; and 3) $7.0 million representing transaction costs associated with the sale of the non-prime in-house accounts receivable. See Note 4, Note 27 and Note 6 for additional information. (in millions) January 30, 2021 February 1, 2020 Total assets: North America segment $ 5,101.9 $ 5,240.2 International segment 514.2 546.4 Other segment 44.9 91.3 Corporate and unallocated 517.9 421.2 Total assets $ 6,178.9 $ 6,299.1 Total long-lived assets: North America segment $ 978.1 $ 1,196.7 International segment 41.6 54.6 Other segment 2.8 3.2 Total long-lived assets $ 1,022.5 $ 1,254.5 |
Restructuring plans (Tables)
Restructuring plans (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | Restructuring charges and other Plan related costs are classified in the consolidated statements of operations as follows: (in millions) Statement of operations location Fiscal 2021 Fiscal 2020 Fiscal 2019 Inventory charges (1) Restructuring charges - cost of sales $ 1.4 $ 9.2 $ 62.2 Other Plan related expenses (2) Restructuring charges 46.2 69.9 63.7 Total Signet Path to Brilliance Plan expenses $ 47.6 $ 79.1 $ 125.9 (1) Inventory charges represent non-cash charges. See Note 14 for additional information related to inventory and inventory reserves. (2) Fiscal 2021, Fiscal 2020, and Fiscal 2019 other Plan related expenses included $14.7 million, $16.7 million, and $22.7 million of non-cash charges, respectively. The composition of restructuring charges the Company incurred during Fiscal 2021, Fiscal 2020 and Fiscal 2019, as well as the cumulative amount incurred through January 30, 2021, were as follows: (in millions) Fiscal 2021 Fiscal 2020 Fiscal 2019 Cumulative amount Inventory charges $ 1.4 $ 9.2 $ 62.2 $ 72.8 Termination benefits 24.1 16.1 9.7 49.9 Store closure and other costs 22.1 53.8 54.0 129.9 Total Signet Path to Brilliance Plan expenses $ 47.6 $ 79.1 $ 125.9 $ 252.6 |
Schedule of Plan Liabilities | The following table summarizes the activity related to the Plan liabilities between periods: (in millions) Termination benefits Store closure and other costs Consolidated Balance at February 3, 2018 $ — $ — $ — Payments and other adjustments (9.7) (103.6) (113.3) Charged to expense 9.7 116.2 125.9 Balance at February 2, 2019 — 12.6 12.6 Payments and other adjustments (14.1) (65.2) (79.3) Charged to expense 16.1 63.0 79.1 Balance at February 1, 2020 2.0 10.4 12.4 Payments and other adjustments (24.0) (25.8) (49.8) Charged to expense 24.1 23.5 47.6 Balance at January 30, 2021 $ 2.1 $ 8.1 $ 10.2 |
Redeemable preferred shares (Ta
Redeemable preferred shares (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Temporary Equity Disclosure [Abstract] | |
Temporary Equity | The following table presents certain conversion measures as of January 30, 2021 and February 1, 2020: (in millions, except conversion rate and conversion price) January 30, 2021 February 1, 2020 Conversion rate 12.2297 12.2297 Conversion price $ 81.7682 $ 81.7682 Potential impact of preferred shares if-converted to common shares 7.9 7.6 Liquidation preference $ 656.8 $ 632.8 |
Common shares, treasury share_2
Common shares, treasury shares, reserves and dividends (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Class of Stock [Line Items] | |
Class of Treasury Stock | The share repurchase activity is outlined in the table below: Fiscal 2021 Fiscal 2020 Fiscal 2019 (in millions, expect per share amounts) Amount Shares Amount Average Shares Amount Average Shares Amount Average 2017 Program (1) $ 600.0 — $ — $ — — — $ 0.00 7.5 $ 434.4 $ 57.64 2016 Program (2) $ 1,375.0 n/a n/a n/a n/a n/a n/a 1.3 $ 50.6 $ 39.76 Total — $ — $ — — — $ 0.00 8.8 $ 485.0 $ 55.06 (1) The 2017 Program had $165.6 million remaining as of January 30, 2021. (2) The 2016 Program was completed in March 2018. n/a Not applicable. |
Schedule of Dividends | Fiscal 2021 Fiscal 2020 Fiscal 2019 (in millions, except per share amounts) Cash dividend Total Cash dividend Total Cash dividend Total First quarter $ 0.00 — $ 0.37 $ 19.3 $ 0.37 $ 21.8 Second quarter 0.00 — 0.37 19.3 0.37 19.2 Third quarter 0.00 — 0.37 19.4 0.37 19.2 Fourth quarter (1) 0.00 — 0.37 19.4 0.37 19.2 Total $ — $ — $ 1.48 $ 77.4 $ 1.48 $ 79.4 (1) Signet’s dividend policy results in the dividend payment date being a quarter in arrears from the declaration date. As of February 1, 2020, there was $19.4 million recorded in accrued expenses and other current liabilities in the consolidated balance sheets reflecting the cash dividends declared for the fourth quarter of Fiscal 2020. There were no dividends declared or accrued as of January 30, 2021. . |
Series A Redeemable Convertible Preferred Stock | |
Class of Stock [Line Items] | |
Schedule of Dividends | Fiscal 2021 Fiscal 2020 Fiscal 2019 (in millions) Total dividends Total cash Total cash First quarter $ 7.8 $ 7.8 $ 7.8 Second quarter 7.9 7.8 7.8 Third quarter 8.0 7.8 7.8 Fourth quarter (1) 8.1 7.8 7.8 Total $ 31.8 $ 31.2 $ 31.2 (1) Signet’s preferred shares dividends results in the dividend payment date being a quarter in arrears from the declaration date. As a result, as of January 30, 2021 and February 1, 2020, $8.1 million and $7.8 million, respectively, has been recorded in accrued expenses and other current liabilities in the consolidated balance sheets reflecting the dividends on preferred shares declared for the fourth quarter of Fiscal 2021 and Fiscal 2020. As disclosed in Note 7, the Fiscal 2021 dividends were paid “in-kind”. |
Earnings (loss) per common sh_2
Earnings (loss) per common share ("EPS") (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic | The computation of basic EPS is outlined in the table below: (in millions, except per share amounts) Fiscal 2021 Fiscal 2020 Fiscal 2019 Numerator: Net income (loss) attributable to common shareholders $ (48.7) $ 72.6 $ (690.3) Denominator: Weighted average common shares outstanding 52.0 51.7 54.7 EPS – basic $ (0.94) $ 1.40 $ (12.62) |
Schedule of Earnings Per Share, Diluted | The computation of diluted EPS is outlined in the table below: (in millions, except per share amounts) Fiscal 2021 Fiscal 2020 Fiscal 2019 Numerator: Net income (loss) attributable to common shareholders $ (48.7) $ 72.6 $ (690.3) Numerator for diluted EPS $ (48.7) $ 72.6 $ (690.3) Denominator: Weighted average common shares outstanding 52.0 51.7 54.7 Plus: Dilutive effect of share awards — 0.1 — Diluted weighted average common shares outstanding 52.0 51.8 54.7 EPS – diluted $ (0.94) $ 1.40 $ (12.62) |
Schedule of antidilutive securities excluded from computation of earnings per share | The calculation of diluted EPS excludes the following items for each respective period on the basis that their effect would be anti-dilutive. (in millions) Fiscal 2021 Fiscal 2020 Fiscal 2019 Share awards 1.8 0.9 1.1 Potential impact of preferred shares 7.8 7.6 7.1 Total anti-dilutive shares 9.6 8.5 8.2 |
Accumulated other comprehensi_2
Accumulated other comprehensive income (loss) (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following tables present the changes in AOCI by component and the reclassifications out of AOCI, net of tax: Pension plan (in millions) Foreign Gain (losses) on available-for-sale securities, net Gains (losses) Actuarial Prior Accumulated Balance at February 3, 2018 $ (212.5) $ (0.1) $ 0.7 $ (51.1) $ 2.4 $ (260.6) OCI before reclassifications (35.9) 0.4 4.8 (3.4) (6.5) (40.6) Amounts reclassified from AOCI to net income — — (1.5) 0.7 — (0.8) Impacts from adoption of new accounting pronouncements (1) — (0.8) — 0.0 — (0.8) Net current period OCI (35.9) (0.4) 3.3 (2.7) (6.5) (42.2) Balance at February 2, 2019 $ (248.4) $ (0.5) $ 4.0 $ (53.8) $ (4.1) $ (302.8) OCI before reclassifications (1.7) (0.2) 11.2 0.4 — 9.7 Amounts reclassified from AOCI to net income — 1.0 (2.7) 1.0 — (0.7) Net current period OCI (1.7) 0.8 8.5 1.4 — 9.0 Balance at February 1, 2020 $ (250.1) $ 0.3 $ 12.5 $ (52.4) $ (4.1) $ (293.8) OCI before reclassifications 11.2 0.2 (0.8) 4.4 — 15.0 Amounts reclassified from AOCI to net income — — (12.6) 0.8 0.1 (11.7) Net current period OCI 11.2 0.2 (13.4) 5.2 0.1 3.3 Balance at January 30, 2021 $ (238.9) $ 0.5 $ (0.9) $ (47.2) $ (4.0) $ (290.5) (1) Adjustment reflects the reclassification of unrealized gains related to the Company’s available-for-sale equity securities as of February 3, 2018 from AOCI into retained earnings associated with the adoption of ASU 2016-01. |
Reclassification out of Accumulated Other Comprehensive Income | The amounts reclassified from AOCI were as follows: Amounts reclassified from AOCI (in millions) Fiscal 2021 Fiscal 2020 Fiscal 2019 Statement of operations caption Losses (gains) on cash flow hedges: Foreign currency contracts $ — $ (1.1) $ 0.7 Cost of sales (1) De-designated foreign currency contracts (0.6) — — Other operating income (loss) (2) Interest rate swaps — (0.6) (1.9) Interest expense, net (1) Commodity contracts (6.9) (1.7) (0.9) Cost of sales (1) De-designated commodity contracts (9.3) — — Other operating income (loss) (2) Total before income tax (16.8) (3.4) (2.1) Income taxes 4.2 0.7 0.6 Net of tax (12.6) (2.7) (1.5) Defined benefit pension plan items: Amortization of unrecognized actuarial losses 1.0 1.2 0.9 Other non-operating income, net (3) Amortization of unrecognized net prior service credits 0.1 — — Other non-operating income, net (3) Total before income tax 1.1 1.2 0.9 Income taxes (0.2) (0.2) (0.2) Net of tax 0.9 1.0 0.7 Available-for-sale securities: Corporate equity securities, before income tax — 1.0 — Other operating income (loss) (4) Income taxes — — — Net of tax — 1.0 — Total reclassifications, net of tax $ (11.7) $ (0.7) $ (0.8) (1) See Note 20 for additional information. (2) The Company’s cash flow hedges were dedesignated during the first quarter of Fiscal 2021. See Note 20 for additional information. (3) These items are included in the computation of net periodic pension benefit (cost). See Note 22 for additional information. (4) See Note 19 for additional information. |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Summary of Tax Expense by Jurisdiction | (in millions) Fiscal 2021 Fiscal 2020 Fiscal 2019 Income (loss) before income taxes: – US $ (173.4) $ 32.3 $ (1,135.8) – Foreign 83.7 97.4 333.2 Total income (loss) before income taxes $ (89.7) $ 129.7 $ (802.6) Current taxation: – US $ (222.2) $ 3.0 $ (55.2) – Foreign 0.7 1.9 15.8 Deferred taxation: – US 158.4 17.0 (85.8) – Foreign (11.4) 2.3 (20.0) Total income tax expense (benefit) $ (74.5) $ 24.2 $ (145.2) |
Reconciliation of Effective Tax Rate | As the statutory rate of corporation tax in Bermuda is 0%, the differences between the US federal income tax rate and the effective tax rates for Signet have been presented below: Fiscal 2021 Fiscal 2020 Fiscal 2019 US federal income tax rates 21.0 % 21.0 % 21.0 % US state income taxes 4.1 % 3.1 % 2.3 % Differences between US federal and foreign statutory income tax rates 0.1 % 1.3 % 0.3 % Expenditures permanently disallowable for tax purposes, net of permanent tax benefits (4.7) % 3.3 % (0.8) % Impact of global reinsurance arrangements 14.1 % (20.3) % 3.1 % Impact of global financing arrangements — % — % 4.2 % Impairment of goodwill (2.4) % 7.5 % (13.4) % Out of period adjustment — % — % 1.4 % CARES Act 111.9 % — % — % Valuation allowance (55.5) % — % — % Other items (5.5) % 2.8 % — % Effective tax rate 83.1 % 18.7 % 18.1 % |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets (liabilities) consisted of the following: January 30, 2021 February 1, 2020 (in millions) Assets (Liabilities) Total Assets (Liabilities) Total Intangible assets $ — $ (41.7) $ (41.7) $ — $ (63.0) $ (63.0) US property, plant and equipment — (55.3) (55.3) — (55.4) (55.4) Foreign property, plant and equipment 7.3 — 7.3 6.5 — 6.5 Inventory valuation — (230.4) (230.4) — (203.1) (203.1) Revenue deferral 95.6 — 95.6 102.5 — 102.5 Derivative instruments 0.3 — 0.3 — (4.3) (4.3) Lease assets — (295.1) (295.1) — (358.2) (358.2) Lease liabilities 331.5 — 331.5 380.6 — 380.6 Deferred compensation 6.7 — 6.7 7.3 — 7.3 Retirement benefit obligations — (9.8) (9.8) — (6.7) (6.7) Share-based compensation 4.4 — 4.4 4.1 — 4.1 Other temporary differences 57.2 — 57.2 77.7 — 77.7 Net operating losses and foreign tax credits 56.5 — 56.5 137.0 — 137.0 Value of capital losses 13.9 — 13.9 12.9 — 12.9 Total gross deferred tax assets (liabilities) $ 573.4 $ (632.3) $ (58.9) $ 728.6 $ (690.7) $ 37.9 Valuation allowance (83.9) — (83.9) (38.4) — (38.4) Deferred tax assets (liabilities) $ 489.5 $ (632.3) $ (142.8) $ 690.2 $ (690.7) $ (0.5) Disclosed as: Non-current assets $ 16.4 $ 4.7 Non-current liabilities (159.2) (5.2) Deferred tax assets (liabilities) $ (142.8) $ (0.5) |
Summary of Activity Related to Unrecognized Tax Benefits | The following table summarizes the activity related to the Company’s unrecognized tax benefits for US federal, US state and non-US tax jurisdictions: (in millions) Fiscal 2021 Fiscal 2020 Fiscal 2019 Unrecognized tax benefits, beginning of period $ 23.5 $ 18.1 $ 12.0 Increases related to current year tax positions 1.0 2.0 2.5 Increases related to prior year tax positions 3.4 6.0 6.2 Lapse of statute of limitations (2.6) (2.6) (2.4) Difference on foreign currency translation 0.1 — (0.2) Unrecognized tax benefits, end of period $ 25.4 $ 23.5 $ 18.1 |
Other operating income (loss) (
Other operating income (loss) (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Other Income and Expenses [Abstract] | |
Summary of Other Operating Income (Loss) | (in millions) Fiscal 2021 Fiscal 2020 Fiscal 2019 Interest income from customer in-house finance receivables (1) $ 4.2 $ — $ 22.8 Shareholder litigation charges, net of insurance recoveries (2) (7.5) (33.2) — De-designated cash flow hedges (3) 9.9 — — Other (4.2) 3.6 3.4 Other operating income (loss) $ 2.4 $ (29.6) $ 26.2 (1) See Note 4 and Note 13 for additional information. (2) See Note 27 for additional information. (3) See Note 20 for additional information. |
Accounts receivable, net (Table
Accounts receivable, net (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Receivables [Abstract] | |
Accounts Receivable by Portfolio Segment, Net | The following table presents the components of Signet’s accounts receivable: (in millions) January 30, 2021 February 1, 2020 Customer in-house finance receivables, net $ 72.0 $ — Accounts receivable, trade 11.6 34.4 Accounts receivable, held for sale 5.1 4.4 Accounts receivable, net $ 88.7 $ 38.8 |
Financing Receivable Credit Quality Indicators | The following table disaggregates the Company’s customer in-house finance receivables by credit quality and vintage year as of January 30, 2021: (in millions) Year of origination Credit quality Fiscal 2021 Near Prime $ 46.6 Subprime 38.9 Deep Subprime 12.0 Total at amortized cost $ 97.5 |
Summary of Allowance for Credit Losses | The following table is a rollforward of the Company’s allowance for credit losses on customer in-house finance receivables: (in millions) Fiscal 2021 Beginning balance $ — Provision for credit losses 26.1 Write-offs (0.6) Recoveries — Ending balance $ 25.5 Prior to completion of the Credit Transaction, the activity in Fiscal 2019 related to the allowance for credit losses on Sterling customer in-house finance receivables is shown below. There was no activity in Fiscal 2020 as the completion of the sale of in-house finance receivables occurred in June 2018. (in millions) Fiscal 2019 Beginning balance $ 113.5 Charge-offs, net (56.3) Recoveries (4.2) Provision 54.6 Reversal of allowance on receivables sold (107.6) Ending balance $ — |
Financing Receivable, Past Due | The following table disaggregates the Company’s customer in-house finance receivables by past due status as of January 30, 2021: (in millions) Current $ 81.3 1 - 30 days past due 9.1 31 - 60 days past due 2.6 61 - 90 days past due 1.7 Greater than 90 days past due 2.8 Total at amortized cost $ 97.5 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Summary of Inventory | The following table summarizes the details of the Company’s inventory: (in millions) January 30, 2021 February 1, 2020 Raw materials $ 45.3 $ 56.2 Finished goods 1,987.2 2,275.5 Total inventories $ 2,032.5 $ 2,331.7 |
Schedule of Inventory Reserves | Inventory reserves (in millions) Fiscal 2021 Fiscal 2020 Fiscal 2019 Inventory reserve, beginning of period $ 67.0 $ 95.3 $ 40.6 Charged to income (1) 78.1 80.2 131.4 Utilization (2) (92.2) (108.5) (76.7) Inventory reserve, end of period (3) $ 52.9 $ 67.0 $ 95.3 (1) Includes $1.4 million in Fiscal 2021, $9.2 million in Fiscal 2020, and $62.2 million in Fiscal 2019 for inventory charges associated with the Company’s restructuring plan. The charges were primarily associated with discontinued brands and collections within the restructuring - cost of sales line item on the consolidated statements of operations. See Note 6 for additional information. (2) Includes the impact of foreign exchange translation between opening and closing balance sheet dates, as well as $20.0 million in Fiscal 2021, $40.0 million in Fiscal 2020, and $10.6 million in Fiscal 2019 utilized for inventory identified as part of the Company’s restructuring plan. See Note 6 for additional information. (3) Includes $2.2 million for Fiscal 2021, $20.8 million in Fiscal 2020, and $51.6 million in Fiscal 2019 for inventory identified as part of the Company’s restructuring plan. See Note 6 for additional information. |
Property, plant and equipment_2
Property, plant and equipment, net (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | Depreciation and amortization are recognized on the straight-line method over the estimated useful lives of the related assets as follows: Buildings Ranging from 30 – 40 years Leasehold improvements Remaining term of lease, not to exceed 10 years Furniture and fixtures Ranging from 3 – 10 years Equipment and software Ranging from 3 – 7 years (in millions) January 30, 2021 February 1, 2020 Land and buildings $ 21.8 $ 23.4 Leasehold improvements 616.9 640.7 Furniture and fixtures 669.9 601.2 Equipment 122.4 199.1 Software 334.2 246.9 Construction in progress 38.4 95.3 Total $ 1,803.6 $ 1,806.6 Accumulated depreciation and amortization (1,198.1) (1,064.7) Property, plant and equipment, net $ 605.5 $ 741.9 |
Asset Impairments (Tables)
Asset Impairments (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Asset Impairment Charges [Abstract] | |
Schedule of Asset Impairment | The following table summarizes the Company’s asset impairment activity for the periods presented: (in millions) Fiscal 2021 Fiscal 2020 Fiscal 2019 Goodwill impairment (1) $ 10.7 $ 47.7 $ 521.2 Indefinite-lived intangible asset impairment (1) 83.3 — 214.2 Property and equipment impairment 28.1 — — Operating lease ROU asset impairment (2) 36.9 — — Total impairment $ 159.0 $ 47.7 $ 735.4 (1) Refer to Note 18 for additional information. (2) The Company recorded $4.4 million of gains on terminations or modifications of leases resulting from previously recorded impairments of the right of use assets in Fiscal 2021. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Leases [Abstract] | |
Schedule of Lease Term and Discount Rate | The weighted average lease term and discount rate for the Company’s outstanding operating leases were as follows: January 30, 2021 February 1, 2020 Weighted average remaining lease term 6.2 years 6.7 years Weighted average discount rate 5.5 % 5.5 % |
Total Lease Costs For Operating Leases | Total lease costs are as follows: (in millions) Fiscal 2021 Fiscal 2020 Operating lease cost $ 436.3 460.3 Short-term lease cost 16.3 19.4 Variable lease cost 110.3 107.1 Sublease income (1.8) (2.0) Total lease cost $ 561.1 $ 584.8 |
Rental Expense For Operating Leases | Total rent expense as determined prior to the adoption of ASC 842 was as follows: (in millions) Fiscal 2019 Minimum rentals $ 510.3 Contingent rent 8.1 Sublease income (1.1) Total rent expense $ 517.3 |
Schedule of Supplemental Cash Flow Information | Supplemental cash flow information related to leases was as follows: (in millions) Fiscal 2021 Fiscal 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 400.4 $ 467.7 Operating lease right-of-use assets obtained in exchange for lease obligations 70.8 149.9 Reduction in the carrying amount of ROU assets (1) 348.3 360.1 (1) Excludes impairment of ROU assets of $36.9 million during Fiscal 2021, as further described in Note 16 . |
Future Minimum Operating Lease Payments | The future minimum operating lease payments for operating leases having initial or non-cancelable terms in excess of one year are as follows: (in millions) January 30, 2021 Fiscal 2022 $ 503.9 Fiscal 2023 349.8 Fiscal 2024 275.3 Fiscal 2025 214.6 Fiscal 2026 157.2 Thereafter 396.7 Total minimum lease payments $ 1,897.5 Less: Imputed interest (372.9) Present value of lease liabilities $ 1,524.6 |
Goodwill and intangibles (Table
Goodwill and intangibles (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill by Reporting Unit | The following table summarizes the Company’s goodwill by reportable segment: (in millions) North Balance at February 2, 2019 $ 296.6 Impairment (47.7) Impact of foreign exchange and other adjustments (0.1) Balance at February 1, 2020 $ 248.8 Impairment (10.7) Impact of foreign exchange (0.1) Balance at January 30, 2021 $ 238.0 |
Composition of Intangible Assets and Liabilities | The following table provides additional detail regarding the composition of intangible assets and liabilities: January 30, 2021 February 1, 2020 (in millions) Gross Accumulated Accumulated impairment loss Net Gross Accumulated Accumulated impairment loss Net Intangible assets, net: Definite-lived intangible assets $ 53.6 $ (52.2) $ — $ 1.4 $ 53.2 $ (50.9) $ — $ 2.3 Indefinite-lived intangible assets 476.8 $ — (299.2) 177.6 475.4 $ — (213.9) 261.5 Total intangible assets, net $ 530.4 $ (52.2) $ (299.2) $ 179.0 $ 528.6 $ (50.9) $ (213.9) $ 263.8 Intangible liabilities, net $ (114.2) $ 103.7 $ — $ (10.5) $ (113.9) $ 98.0 $ — $ (15.9) |
Summary of Expected Future Amortization Expense for Intangible Assets | Expected future amortization for intangible assets and future amortization for intangible liabilities recorded at January 30, 2021 follows: (in millions) Intangible assets, net amortization Intangible liabilities amortization Fiscal 2022 $ 0.8 $ (5.4) Fiscal 2023 0.6 (5.1) Total $ 1.4 $ (10.5) |
Summary of Expected Future Amortization of Intangible Liabilities | Expected future amortization for intangible assets and future amortization for intangible liabilities recorded at January 30, 2021 follows: (in millions) Intangible assets, net amortization Intangible liabilities amortization Fiscal 2022 $ 0.8 $ (5.4) Fiscal 2023 0.6 (5.1) Total $ 1.4 $ (10.5) |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of available-for-sale debt securities | All investments are classified as available-for-sale and include the following: January 30, 2021 February 1, 2020 (in millions) Cost Unrealized Gain (Loss) Fair Value Cost Unrealized Gain (Loss) Fair Value US Treasury securities $ 5.6 $ 0.1 $ 5.7 $ 7.2 $ — $ 7.2 US government agency securities 3.1 0.1 3.2 4.6 0.1 4.7 Corporate bonds and notes 6.2 0.3 6.5 8.3 0.2 8.5 Total investments $ 14.9 $ 0.5 $ 15.4 $ 20.1 $ 0.3 $ 20.4 Investments in debt securities outstanding as of January 30, 2021 mature as follows: (in millions) Cost Fair Value Less than one year $ 3.9 $ 3.9 Year two through year five 11.0 11.5 Total investment in debt securities $ 14.9 $ 15.4 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Fair Value and Presentation of Derivative Instruments | The following table summarizes the fair value and presentation of derivative instruments in the consolidated balance sheets: Fair value of derivative assets (in millions) Balance sheet location January 30, 2021 February 1, 2020 Derivatives designated as hedging instruments: Commodity contracts Other current assets $ — $ 11.8 Derivatives not designated as hedging instruments: Foreign currency contracts Other current assets 0.1 0.6 Total derivative assets $ 0.1 $ 12.4 Fair value of derivative liabilities (in millions) Balance sheet location January 30, 2021 February 1, 2020 Derivatives designated as hedging instruments: Foreign currency contracts Other current liabilities $ (0.3) $ (0.8) Commodity contracts Other current liabilities (0.1) — (0.4) (0.8) Derivatives not designated as hedging instruments: Foreign currency contracts Other current liabilities — (0.1) Total derivative liabilities $ (0.4) $ (0.9) |
Summary of Pre-Tax Gains (Losses) Recorded | The following table summarizes the pre-tax gains (losses) recorded in AOCI for derivatives designated in cash flow hedging relationships: (in millions) January 30, 2021 February 1, 2020 Foreign currency contracts $ (0.7) $ (1.0) Commodity contracts (0.4) 17.7 Gains (losses) recorded in AOCI $ (1.1) $ 16.7 |
Summary of Derivative Instruments | The following tables summarize the effect of derivative instruments designated as cash flow hedges in OCI and the consolidated statements of operations: Foreign currency contracts (in millions) Statement of operations caption Fiscal 2021 Fiscal 2020 Gains (losses) recorded in AOCI, beginning of period $ (1.0) $ 0.7 Current period gains (losses) recognized in OCI 0.9 (0.6) (Gains) losses reclassified from AOCI to net income Cost of sales (1) — (1.1) Gains from de-designated hedges reclassified from AOCI to net income Other operating income (loss) (1) (0.6) — Gains (losses) recorded in AOCI, end of period $ (0.7) $ (1.0) Commodity contracts (in millions) Statement of operations caption Fiscal 2021 Fiscal 2020 Gains (losses) recorded in AOCI, beginning of period $ 17.7 $ 4.0 Current period gains (losses) recognized in OCI (1.9) 15.4 Gains reclassified from AOCI to net income Cost of sales (1) (6.9) (1.7) Gains from de-designated hedges reclassified from AOCI to net income Other operating income (loss) (1) (9.3) — Gains (losses) recorded in AOCI, end of period $ (0.4) $ 17.7 Interest rate swaps (in millions) Statement of operations caption Fiscal 2021 Fiscal 2020 Gains recorded in AOCI, beginning of period $ — $ 0.6 Current period gains recognized in OCI — — Gains reclassified from AOCI to net income Interest expense, net (1) — (0.6) Gains recorded in AOCI, end of period $ — $ — (1) Refer to table below for total amounts of financial statement captions impacted by cash flow hedges. Total amounts presented in the consolidated statements of operations (in millions) Fiscal 2021 Fiscal 2020 Cost of sales $ (3,493.0) $ (3,904.2) Other operating income (loss) 2.4 (29.6) Interest expense, net (32.0) (35.6) The following table presents the effects of the Company’s derivatives instruments not designated as cash flow hedges in the consolidated statements of operations: (in millions) Statement of operations caption Fiscal 2021 Fiscal 2020 Foreign currency contracts Other operating income (loss) $ 2.2 $ (3.1) |
Fair value measurement (Tables)
Fair value measurement (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Methods to Determine Fair Value on Instrument-Specific Basis | The methods Signet uses to determine fair value on an instrument-specific basis are detailed below: January 30, 2021 February 1, 2020 (in millions) Carrying Value Level 1 Carrying Value Level 1 Level 2 Assets: US Treasury securities $ 5.7 $ 5.7 $ — $ 7.2 $ 7.2 $ — Foreign currency contracts 0.1 — 0.1 0.6 — 0.6 Commodity contracts — — — 11.8 — 11.8 US government agency securities 3.2 — 3.2 4.7 — 4.7 Corporate bonds and notes 6.5 — 6.5 8.5 — 8.5 Total assets $ 15.5 $ 5.7 $ 9.8 $ 32.8 $ 7.2 $ 25.6 Liabilities: Foreign currency contracts $ (0.3) $ — $ (0.3) $ (0.9) $ — $ (0.9) Commodity contracts (0.1) — (0.1) — — — Total liabilities $ (0.4) $ — $ (0.4) $ (0.9) $ — $ (0.9) |
Schedule of Carrying Amount and Fair Value of Outstanding Debt | The following table provides a summary of the carrying amount and fair value of outstanding debt: January 30, 2021 February 1, 2020 (in millions) Carrying Fair Value Carrying Fair Value Long-term debt Senior Notes (Level 2) $ 146.7 $ 145.1 $ 146.4 $ 144.8 Term loans (Level 2) — — 99.5 100.0 Total $ 146.7 $ 145.1 $ 245.9 $ 244.8 |
Retirement plans (Tables)
Retirement plans (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Changes in Fair Value of Plan Assets | The following tables provide information concerning the UK Plan as of and for the fiscal years ended January 30, 2021 and February 1, 2020: (in millions) Fiscal 2021 Fiscal 2020 Change in UK Plan assets: Fair value at beginning of year $ 281.9 $ 245.5 Actual return on UK Plan assets 11.9 36.8 Employer contributions 4.4 5.3 Members’ contributions — 0.2 Benefits paid (9.8) (9.4) Foreign currency translation 10.8 3.5 Fair value at end of year $ 299.2 $ 281.9 |
Schedule of Changes in Projected Benefit Obligations | (in millions) Fiscal 2021 Fiscal 2020 Change in benefit obligation: Benefit obligation at beginning of year $ 243.4 $ 214.9 Service cost — 0.7 Interest cost 4.0 5.5 Members’ contributions — 0.2 Actuarial loss 1.4 29.2 Benefits paid (9.8) (9.4) Foreign currency translation 8.6 2.3 Benefit obligation at end of year $ 247.6 $ 243.4 Funded status at end of year $ 51.6 $ 38.5 |
Schedule of Amounts Recognized in Balance Sheet | (in millions) January 30, 2021 February 1, 2020 Amounts recognized in the balance sheet consist of: Other assets (non current) $ 51.6 $ 38.5 |
Schedule of Net Periodic Benefit Cost Not yet Recognized | Items in AOCI not yet recognized in net income in the consolidated statements of operations: (in millions) January 30, 2021 February 1, 2020 February 2, 2019 Net actuarial losses $ (47.2) $ (52.4) $ (53.8) Net prior service costs (4.0) (4.1) (4.1) |
Components of Net Benefit Costs | The components of net periodic pension benefit cost and other amounts recognized in OCI for the UK Plan are as follows: (in millions) Fiscal 2021 Fiscal 2020 Fiscal 2019 Components of net periodic benefit (cost) income: Service cost $ — $ (0.7) $ (0.9) Interest cost (4.0) (5.5) (5.8) Expected return on UK Plan assets 5.5 7.8 8.4 Amortization of unrecognized actuarial losses (0.9) (1.2) (0.9) Amortization of unrecognized net prior service costs (0.1) — — Total net periodic benefit (cost) income $ 0.5 $ 0.4 $ 0.8 Other changes in assets and benefit obligations recognized in OCI 6.5 1.7 (11.3) Total recognized in net periodic pension benefit (cost) and OCI $ 7.0 $ 2.1 $ (10.5) |
Schedule of Assumptions Used | January 30, 2021 February 1, 2020 Assumptions used to determine benefit obligations (at the end of the year): Discount rate 1.60 % 1.70 % Salary increases N/A N/A Assumptions used to determine net periodic pension costs (at the start of the year): Discount rate 1.70 % 2.70 % Expected return on UK Plan assets 2.20 % 3.50 % Salary increases N/A 1.50 % |
Schedule of Allocation of Plan Assets | The methods Signet uses to determine fair value on an instrument-specific basis are detailed below: Fair value measurements as of January 30, 2021 Fair value measurements as of February 1, 2020 (in millions) Total Total Level 1 Level 2 Asset category: Diversified equity securities $ 13.0 $ — $ 13.0 $ 15.1 $ — $ 15.1 Diversified growth funds 44.4 44.4 — 49.8 49.8 — Fixed income – government bonds 161.4 161.4 — 139.7 139.7 — Fixed income – corporate bonds 56.2 — 56.2 48.8 — 48.8 Cash 3.7 3.7 — 4.3 4.3 — Investments measured at NAV (1) : Diversified growth funds 18.0 17.8 Property 2.5 6.4 Total $ 299.2 $ 209.5 $ 69.2 $ 281.9 $ 193.8 $ 63.9 (1) Certain assets that are measured at fair value using the net asset value (“NAV”) practical expedient have not been classified in the fair value hierarchy. Fair value measurements as of January 30, 2021 Fair value measurements as of February 1, 2020 (in millions) Total Total Level 1 Level 2 Assets: Corporate-owned life insurance plans $ 6.3 $ — $ 6.3 $ 6.5 $ — $ 6.5 Money market funds 21.7 21.7 — 21.0 21.0 — Total assets $ 28.0 $ 21.7 $ 6.3 $ 27.5 $ 21.0 $ 6.5 |
Schedule of Expected Benefit Payments | The following benefit payments are currently estimated to be paid by the UK Plan: (in millions) Expected benefit payments Fiscal 2022 $ 9.7 Fiscal 2023 9.6 Fiscal 2024 9.6 Fiscal 2025 9.5 Fiscal 2026 9.7 Next five fiscal years $ 49.3 |
Loans, overdrafts and long-te_2
Loans, overdrafts and long-term debt (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Loans, Overdrafts and Long-Term Debt | (in millions) January 30, 2021 February 1, 2020 Debt: Senior Notes, net of unamortized discount $ 147.6 $ 147.5 ABL Revolving Facility — 270.0 FILO term loan facility — 100.0 Other loans and bank overdrafts — 95.6 Gross debt $ 147.6 $ 613.1 Less: Current portion of loans and overdrafts — (95.6) Less: Unamortized debt issuance costs (0.9) (1.6) Total long-term debt $ 146.7 $ 515.9 |
Schedule of Maturities of Long-term Debt | The annual aggregate maturities of the Company’s debt (excluding the impact of debt issuance costs) for the five years subsequent to January 30, 2021 are presented below. (in millions) Fiscal 2022 $ — Fiscal 2023 — Fiscal 2024 — Fiscal 2025 147.6 Fiscal 2026 — Thereafter — Gross Debt $ 147.6 |
Accrued expenses and other cu_2
Accrued expenses and other current liabilities (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Expenses And Other Current Liabilities | (in millions) January 30, 2021 February 1, 2020 Accrued compensation and benefits $ 111.6 $ 63.1 Accrued advertising 52.3 33.8 Other taxes 69.3 32.8 Payroll taxes 27.5 11.7 Shareholder litigation (see Note 27) — 240.6 Accrued expenses 233.4 315.0 Total accrued expenses and other current liabilities $ 494.1 $ 697.0 |
Warranty Reserve for Diamond and Gemstone Guarantee | The warranty reserve for diamond and gemstone guarantee is as follows: (in millions) Fiscal 2021 Fiscal 2020 Fiscal 2019 Warranty reserve, beginning of period $ 36.3 $ 33.2 $ 37.2 Warranty expense 8.5 13.5 8.0 Utilized (1) (7.5) (10.4) (12.0) Warranty reserve, end of period $ 37.3 $ 36.3 $ 33.2 (1) Includes impact of foreign exchange translation. (in millions) January 30, 2021 February 1, 2020 Disclosed as: Current liabilities (1) $ 10.7 $ 10.6 Other liabilities - non-current (see Note 25) 26.6 25.7 Total warranty reserve $ 37.3 $ 36.3 |
Other liabilities - non-curre_2
Other liabilities - non-current (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Liabilities | (in millions) January 30, 2021 February 1, 2020 Deferred compensation 25.5 31.0 Warranty reserve 26.6 25.7 Other liabilities 59.0 59.9 Total other liabilities $ 111.1 $ 116.6 |
Share-based compensation (Table
Share-based compensation (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-Based Compensation Expense and Associated Tax Benefits | Share-based compensation expense and the associated tax benefits recognized in the consolidated statements of operations are as follows: (in millions) Fiscal 2021 Fiscal 2020 Fiscal 2019 Share-based compensation expense $ 14.5 $ 16.9 $ 16.5 Income tax benefit $ (3.6) $ (4.2) $ (4.1) |
Summary of Unrecognized Compensation Cost Related to Outstanding Awards | As of January 30, 2021, unrecognized compensation cost related to unvested awards granted under share-based compensation plans is as follows: (in millions) Unrecognized Compensation Cost Weighted average period Omnibus Plan $ 26.6 2.2 years Share Saving Plans 0.1 0.7 years Total $ 26.7 |
Omnibus Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Significant Assumptions Utilized to Estimate Weighted-Average Fair Value of Awards Granted | The significant assumptions utilized to estimate the weighted-average fair value of RSAs, Common Shares and RSU awards granted under the Omnibus Plans are as follows: Omnibus Plan Fiscal 2021 Fiscal 2020 Fiscal 2019 Share price $ 11.10 $ 20.76 $ 41.36 Expected term 2.9 years 2.8 years 2.8 years Dividend yield 5.5 % 7.5 % 3.6 % Fair value $ 9.37 $ 18.14 $ 38.57 The significant assumptions utilized to estimate the weighted-average fair value of stock options granted under the Omnibus Plans are as follows: Fiscal 2020 Fiscal 2019 Share price $ 22.17 $ 40.09 Exercise price $ 25.18 $ 39.72 Risk free interest rate 2.4 % 2.9 % Expected term 6.0 years 6.5 years Expected volatility 42.7 % 37.6 % Dividend yield 6.7 % 3.7 % Fair value $ 4.27 $ 11.21 |
Activity for Awards Granted Under the Plan | The Fiscal 2021 activity for Common Shares, RSAs, and time-based and performance-based RSU awards granted under the Omnibus Plans is as follows: Omnibus Plans (in millions, except per share amounts) No. of Weighted Weighted Intrinsic (1) Outstanding at February 1, 2020 2.8 $ 31.04 1.5 years $ 66.9 Fiscal 2021 activity: Granted 3.3 9.62 Vested (0.4) 30.25 Lapsed or forfeited (0.9) 34.20 Outstanding at January 30, 2021 4.8 $ 15.24 1.8 years $ 192.3 (1) Intrinsic value for outstanding restricted stock and RSUs is based on the fair market value of Signet’s common stock on the last business day of the fiscal year. The Fiscal 2021 activity for stock options granted under the Omnibus Plans is as follows: Omnibus Plans (in millions, except per share amounts) No. of Weighted Weighted Intrinsic (1) Outstanding at February 1, 2020 0.7 $ 39.13 8.3 years $ — Fiscal 2021 activity: Granted — — Exercised — — Lapsed or forfeited (0.2) 39.61 Outstanding at January 30, 2021 0.5 $ 38.98 7.3 years $ 0.8 (1) Intrinsic value for outstanding awards is based on the fair market value of Signet’s common stock on the last business day of the fiscal year. |
Summary of Additional Information about Awards Granted | The following table summarizes additional information about awards granted under the Omnibus Plan: (in millions) Fiscal 2021 Fiscal 2020 Fiscal 2019 Total intrinsic value of awards vested $ 5.0 $ 3.5 $ 6.8 |
Sharesave Plans | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Significant Assumptions Utilized to Estimate Weighted-Average Fair Value of Awards Granted | The significant assumptions utilized to estimate the weighted-average fair value of awards granted under the Sharesave Plans are as follows: Fiscal 2019 Share price $ 58.50 Exercise price $ 57.97 Risk free interest rate 3.0 % Expected term 3.7 years Expected volatility 44.4 % Dividend yield 2.6 % Fair value $ 18.07 |
Activity for Awards Granted Under the Plan | The Fiscal 2021 activity for awards granted under the Sharesave Plans is as follows: Sharesave Plans (in millions, except per share amounts) No. of Weighted Weighted Intrinsic (1) Outstanding at February 1, 2020 0.1 $ 54.78 1.1 years $ — Fiscal 2021 activity: Granted — — Exercised — — Lapsed or forfeited — — Outstanding at January 30, 2021 0.1 $ 51.30 0.8 years $ — Exercisable at February 1, 2020 — $ — $ — Exercisable at January 30, 2021 — $ — $ — (1) Intrinsic value for outstanding awards is based on the fair market value of Signet’s common stock on the last business day of the fiscal year. |
Summary of Additional Information about Awards Granted | The following table summarizes additional information about awards granted under the Sharesave Plans: (in millions, except per share amounts) Fiscal 2019 Weighted average grant date fair value per share of awards granted $ 18.07 Total intrinsic value of options exercised $ — Cash received from share options exercised $ — |
Organization and summary of s_4
Organization and summary of significant accounting policies - Narrative (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jan. 30, 2021 | Jan. 30, 2021USD ($)segment | Feb. 01, 2020USD ($) | Feb. 02, 2019USD ($) | |
Organization and critical accounting policies [Abstract] | ||||
Number of reportable segments | segment | 3 | |||
Selling, General and Administrative Expense [Abstract] | ||||
Labor and related expense | $ 996.1 | $ 1,196.6 | $ 1,251.2 | |
Advertising and promotional costs [Abstract] | ||||
Advertising expense | $ 343 | $ 388.9 | $ 387.8 | |
Minimum | ||||
Organization and critical accounting policies [Abstract] | ||||
Percent of annual sales | 35.00% | |||
Property, Plant and Equipment [Abstract] | ||||
Period over which amortization is charged for capitalized payroll for internal use computer projects | 3 years | |||
Maximum | ||||
Organization and critical accounting policies [Abstract] | ||||
Percent of annual sales | 40.00% | |||
Property, Plant and Equipment [Abstract] | ||||
Period over which amortization is charged for capitalized payroll for internal use computer projects | 7 years |
Organization and summary of s_5
Organization and summary of significant accounting policies - Cash and Equivalents (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 1,172.5 | $ 374.5 |
Cash and cash equivalents held in money markets and other accounts | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 1,122.2 | 326.2 |
Cash equivalents from third-party credit card issuers | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 48.8 | 46.3 |
Cash on hand | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 1.5 | $ 2 |
Organization and summary of s_6
Organization and summary of significant accounting policies - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Non-cash investing activities: | |||
Capital expenditures in accounts payable | $ 1.2 | $ 0.1 | $ 5.6 |
Supplemental cash flow information: | |||
Interest paid | 30.5 | 34.7 | 39.1 |
Income tax paid (refunded), net | (176) | $ 5.7 | $ (44.8) |
CARES Act, income tax refunded | $ 183.4 |
Organization and summary of s_7
Organization and summary of significant accounting policies - Property Plant and Equipment (Details) | 12 Months Ended |
Jan. 30, 2021 | |
Minimum | Buildings | |
Property, Plant and Equipment [Line Items] | |
Useful life | 30 years |
Minimum | Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Minimum | Equipment, including software | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Maximum | Buildings | |
Property, Plant and Equipment [Line Items] | |
Useful life | 40 years |
Maximum | Leasehold Improvements | |
Property, Plant and Equipment [Line Items] | |
Useful life | 10 years |
Maximum | Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Useful life | 10 years |
Maximum | Equipment, including software | |
Property, Plant and Equipment [Line Items] | |
Useful life | 7 years |
Revenue recognition - Disaggreg
Revenue recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Total sales | $ 5,226.9 | $ 6,137.1 | $ 6,247.1 |
Bridal | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 2,306.9 | 2,617.7 | 2,712.6 |
Fashion | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 2,057.1 | 2,241.5 | 2,254.4 |
Watches | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 254.1 | 384 | 429.1 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 608.8 | 893.9 | 851 |
Store | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 4,011.8 | 5,333.4 | 5,535.8 |
Kay | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 2,008.6 | 2,414 | 2,475.2 |
Zales | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 1,121.6 | 1,276.8 | 1,280.5 |
Jared | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 920.9 | 1,088.1 | 1,141.4 |
Piercing Pagoda | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 337.5 | 331.7 | 302.5 |
James Allen | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 301.4 | 250.6 | 223.7 |
Peoples | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 150.9 | 204.6 | 218.4 |
International | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 355.9 | 518 | 576.5 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 30.1 | 53.3 | 28.9 |
eCommerce | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 1,185 | 750.4 | 682.4 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 30.1 | 53.3 | 28.9 |
North America | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 4,840.9 | 5,565.8 | 5,641.7 |
North America | Bridal | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 2,140.5 | 2,403.4 | 2,478.6 |
North America | Fashion | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 1,987.9 | 2,131 | 2,128.1 |
North America | Watches | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 145.6 | 214.9 | 238.2 |
North America | Other | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 566.9 | 816.5 | 796.8 |
North America | Store | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 3,772.9 | 4,880.2 | 5,022.4 |
North America | Kay | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 2,008.6 | 2,414 | 2,475.2 |
North America | Zales | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 1,121.6 | 1,276.8 | 1,280.5 |
North America | Jared | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 920.9 | 1,088.1 | 1,141.4 |
North America | Piercing Pagoda | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 337.5 | 331.7 | 302.5 |
North America | James Allen | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 301.4 | 250.6 | 223.7 |
North America | Peoples | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 150.9 | 204.6 | 218.4 |
North America | International | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 0 | 0 | 0 |
North America | Other | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 0 | 0 | 0 |
North America | eCommerce | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 1,068 | 685.6 | 619.3 |
North America | Other | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 0 | 0 | 0 |
International | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 355.9 | 518 | 576.5 |
International | Bridal | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 166.4 | 214.3 | 234 |
International | Fashion | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 69.2 | 110.5 | 126.3 |
International | Watches | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 108.5 | 169.1 | 190.9 |
International | Other | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 11.8 | 24.1 | 25.3 |
International | Store | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 238.9 | 453.2 | 513.4 |
International | Kay | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 0 | 0 | 0 |
International | Zales | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 0 | 0 | 0 |
International | Jared | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 0 | 0 | 0 |
International | Piercing Pagoda | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 0 | 0 | 0 |
International | James Allen | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 0 | 0 | 0 |
International | Peoples | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 0 | 0 | 0 |
International | International | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 355.9 | 518 | 576.5 |
International | Other | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 0 | 0 | 0 |
International | eCommerce | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 117 | 64.8 | 63.1 |
International | Other | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 0 | 0 | 0 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 30.1 | 53.3 | 28.9 |
Other | Bridal | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 0 | 0 | 0 |
Other | Fashion | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 0 | 0 | 0 |
Other | Watches | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 0 | 0 | 0 |
Other | Other | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 30.1 | 53.3 | 28.9 |
Other | Store | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 0 | 0 | 0 |
Other | Kay | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 0 | 0 | 0 |
Other | Zales | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 0 | 0 | 0 |
Other | Jared | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 0 | 0 | 0 |
Other | Piercing Pagoda | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 0 | 0 | 0 |
Other | James Allen | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 0 | 0 | 0 |
Other | Peoples | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 0 | 0 | 0 |
Other | International | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 0 | 0 | 0 |
Other | Other | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 30.1 | 53.3 | 28.9 |
Other | eCommerce | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | 0 | 0 | 0 |
Other | Other | |||
Disaggregation of Revenue [Line Items] | |||
Total sales | $ 30.1 | $ 53.3 | $ 28.9 |
Revenue recognition - Narrative
Revenue recognition - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | ||
Disaggregation of Revenue [Line Items] | |||||
Capitalized contract cost reclassified | $ (111.3) | $ (103.6) | |||
Shareholders' equity reclassification, adoption of ASU 2014-09 | 1,190.3 | 1,222.6 | $ 1,201.6 | $ 2,499.8 | |
Cumulative Effect, Period of Adoption, Adjustment | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue recognized | 111.2 | ||||
Capitalized contract cost reclassified | 16.5 | ||||
Shareholders' equity reclassification, adoption of ASU 2014-09 | [1] | $ (16.5) | |||
Extended Service Plans and Lifetime Warranty Agreements | |||||
Disaggregation of Revenue [Line Items] | |||||
Capitalized contract cost, amortization | $ 26.3 | $ 29.5 | $ 52.4 | ||
North America | Extended Service Plans and Lifetime Warranty Agreements | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue, performance obligation, description of timing | 17 years | ||||
North America | Jewelry Replacement Plan | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue, performance obligation, description of timing | three years | ||||
[1] | Reflects reclassifications to retained earnings related to 1) unrealized gains related to the Company’s equity security investments as of February 3, 2018 from AOCI associated with the adoption of ASU 2016-01 and 2) deferred costs associated with the sale of extended service plans due to the adoption of ASU 2014-09. |
Revenue recognition - Unamortiz
Revenue recognition - Unamortized Deferred Selling Costs (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Other current assets | $ 26.2 | $ 23.6 |
Other assets | 85.1 | 80 |
Total deferred ESP selling costs | $ 111.3 | $ 103.6 |
Revenue recognition - Performan
Revenue recognition - Performance Obligation Narrative (Details) - Extended Service Plans and Lifetime Warranty Agreements - North America - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-31 | Jan. 30, 2021 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percentage of revenue recognized | 55.00% |
Expected timing of satisfaction, period | 2 years |
Revenue recognition - ESP and V
Revenue recognition - ESP and Voucher Promotions (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Deferred Revenue Warranty [Roll Forward] | ||
Total deferred revenue | $ 1,072 | $ 997.7 |
Current liabilities | 288.7 | 266.2 |
Non-current liabilities | 783.3 | 731.5 |
ESP deferred revenue | ||
Deferred Revenue Warranty [Roll Forward] | ||
Total deferred revenue | 1,028.9 | 960 |
Voucher promotions and other | ||
Deferred Revenue Warranty [Roll Forward] | ||
Total deferred revenue | $ 43.1 | $ 37.7 |
Revenue recognition - ESP Defer
Revenue recognition - ESP Deferred Revenue Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 30, 2021 | Feb. 01, 2020 | |
Change in Contract with Customer, Liability [Roll Forward] | ||
ESP deferred revenue, beginning of period | $ 997.7 | |
ESP deferred revenue, end of period | 1,072 | $ 997.7 |
Extended Service Plan | ||
Change in Contract with Customer, Liability [Roll Forward] | ||
ESP deferred revenue, beginning of period | 960 | 927.6 |
Plans sold | 337.4 | 405.1 |
Revenue recognized | (268.5) | (372.7) |
ESP deferred revenue, end of period | 1,028.9 | 960 |
Extended Service Plan and Voucher Promotions | ||
Change in Contract with Customer, Liability [Roll Forward] | ||
Revenue recognized | $ (163.5) | $ (193.6) |
Credit transaction, net (Detail
Credit transaction, net (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 5 Months Ended | 12 Months Ended | ||||
Jun. 30, 2018 | May 31, 2018 | Oct. 31, 2017 | Aug. 04, 2018 | Jun. 30, 2021 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Percentage of eligible receivables purchased | 30.00% | |||||||
Sale of receivables, percentage of par | 72.00% | |||||||
Sale of receivables, percentage settled in cash | 95.00% | |||||||
Sale of receivables. percentage deferred until second anniversary | 5.00% | 5.00% | ||||||
Proceeds from sale of in-house finance receivables | $ 445.5 | |||||||
Genesis Financial Solution | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Servicing agreement, term (years) | 5 years | |||||||
Forecast | CarVal | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Sale of receivables, additional percentage purchased | 50.00% | |||||||
Forecast | Genesis Financial Solution | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Sale of receivables, additional percentage purchased | 50.00% | |||||||
Securitization Facility | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Sale of receivables, percentage of revenue | 2.00% | 7.00% | ||||||
Sterling Jewelers | Consumer Portfolio Segment | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Gain (loss) on sale of receivable | $ (160.4) | |||||||
Other | Consumer Portfolio Segment | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Transaction costs | $ 7 |
Segment information - Additiona
Segment information - Additional Information (Details) | 12 Months Ended |
Jan. 30, 2021segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment information - Summary o
Segment information - Summary of Activity by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Segment Reporting Information [Line Items] | |||
Total sales | $ 5,226.9 | $ 6,137.1 | $ 6,247.1 |
Operating income (loss) | (57.7) | 158.3 | (764.6) |
Interest expense, net | (32) | (35.6) | (39.7) |
Other non-operating income, net | 0 | 7 | 1.7 |
Income (loss) before income taxes | (89.7) | 129.7 | (802.6) |
Depreciation and amortization | 176 | 178 | 183.6 |
Capital additions | 83 | 136.3 | 133.5 |
Asset impairment charges | 159 | 47.7 | 735.4 |
Restructuring benefit due to change in inventory reserves | (1.4) | (9.2) | (62.2) |
Gain (loss) related to litigation settlement | (7.5) | (33.2) | 0 |
Total assets | 6,178.9 | 6,299.1 | |
Total long-lived assets | 1,022.5 | 1,254.5 | |
Corporate and unallocated | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | (72) | (119.7) | (91.3) |
Severance costs | 0.5 | 20.8 | 10.3 |
Gain (loss) on sale of receivable | (7) | ||
Gain (loss) related to litigation settlement | (7.5) | (33.2) | (11) |
Total assets | 517.9 | 421.2 | |
North America | |||
Segment Reporting Information [Line Items] | |||
Total sales | 4,840.9 | 5,565.8 | 5,641.7 |
North America | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total sales | 4,840.9 | 5,565.8 | 5,641.7 |
Operating income (loss) | 57.9 | 284.9 | (666) |
Depreciation and amortization | 163.7 | 159.9 | 165.8 |
Capital additions | 79 | 128.3 | 123.9 |
Inventory charges | 1.6 | 6 | 52.7 |
Severance costs | 36 | 42.1 | 44.9 |
Asset impairment charges | 136.7 | 47.7 | 731.8 |
Gain (loss) on sale of receivable | (160.4) | ||
Total assets | 5,101.9 | 5,240.2 | |
Total long-lived assets | 978.1 | 1,196.7 | |
North America | Canada | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total sales | 150.9 | 204.6 | 218.3 |
International | |||
Segment Reporting Information [Line Items] | |||
Total sales | 355.9 | 518 | 576.5 |
International | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total sales | 355.9 | 518 | 576.5 |
Operating income (loss) | (43.3) | 9 | 4.4 |
Depreciation and amortization | 12 | 17.8 | 17.5 |
Capital additions | 4 | 8 | 9.6 |
Inventory charges | 3.8 | ||
Severance costs | 9.7 | 7 | 8.5 |
Asset impairment charges | 22.3 | ||
Total assets | 514.2 | 546.4 | |
Total long-lived assets | 41.6 | 54.6 | |
Other | |||
Segment Reporting Information [Line Items] | |||
Total sales | 30.1 | 53.3 | 28.9 |
Other | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total sales | 30.1 | 53.3 | 28.9 |
Operating income (loss) | (0.3) | (15.9) | (11.7) |
Depreciation and amortization | 0.3 | 0.3 | 0.3 |
Capital additions | 0 | 0 | 0 |
Inventory charges | 3.2 | 5.7 | |
Asset impairment charges | $ 3.6 | ||
Restructuring benefit due to change in inventory reserves | 0.2 | ||
Total assets | 44.9 | 91.3 | |
Total long-lived assets | $ 2.8 | $ 3.2 |
Restructuring plans - Narrative
Restructuring plans - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | 36 Months Ended | |||
May 05, 2018 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | Jan. 30, 2021 | Feb. 03, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | $ 46.2 | $ 69.9 | $ 63.7 | |||
Signet Path to Brillance | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring plan, length | 3 years | |||||
Restructuring charges | 47.6 | 79.1 | 125.9 | $ 252.6 | ||
Payments for restructuring | 49.8 | 79.3 | 113.3 | |||
Restructuring reserve | 10.2 | $ 12.4 | $ 12.6 | 10.2 | $ 0 | |
Minimum | Signet Path to Brillance | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 200 | |||||
Payments for restructuring | 105 | |||||
Maximum | Signet Path to Brillance | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 220 | |||||
Payments for restructuring | 115 | |||||
Accrued Expenses And Other Current Liabilities | Signet Path to Brillance | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring reserve | 8.6 | 8.6 | ||||
Other Noncurrent Liabilities | Signet Path to Brillance | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring reserve | $ 1.6 | $ 1.6 |
Restructuring plans - Restructu
Restructuring plans - Restructuring and Related Costs (Details) - USD ($) $ in Millions | 12 Months Ended | 36 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | Jan. 30, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 46.2 | $ 69.9 | $ 63.7 | |
Signet Path to Brillance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 47.6 | 79.1 | 125.9 | $ 252.6 |
Non-cash charges | 126.9 | |||
Signet Path to Brillance | Cost of sales | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Inventory charges | 1.4 | 9.2 | 62.2 | |
Signet Path to Brillance | Restructuring charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Plan related expenses | 46.2 | 69.9 | 63.7 | |
Non-cash charges | 14.7 | 16.7 | 22.7 | |
Inventory charges | Signet Path to Brillance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 1.4 | 9.2 | 62.2 | 72.8 |
Termination benefits | Signet Path to Brillance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 24.1 | 16.1 | 9.7 | 49.9 |
Store closure and other costs | Signet Path to Brillance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 22.1 | $ 53.8 | $ 54 | $ 129.9 |
Restructuring plans - Schedule
Restructuring plans - Schedule of Plan Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | 36 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | Jan. 30, 2021 | |
Restructuring Reserve [Roll Forward] | ||||
Charged to expense | $ 46.2 | $ 69.9 | $ 63.7 | |
Signet Path to Brillance | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 12.4 | 12.6 | 0 | $ 0 |
Payments and other adjustments | (49.8) | (79.3) | (113.3) | |
Charged to expense | 47.6 | 79.1 | 125.9 | 252.6 |
Ending balance | 10.2 | 12.4 | 12.6 | 10.2 |
Termination benefits | Signet Path to Brillance | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 2 | 0 | 0 | 0 |
Payments and other adjustments | (24) | (14.1) | (9.7) | |
Charged to expense | 24.1 | 16.1 | 9.7 | 49.9 |
Ending balance | 2.1 | 2 | 0 | 2.1 |
Store closure and other costs | Signet Path to Brillance | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 10.4 | 12.6 | 0 | 0 |
Payments and other adjustments | (25.8) | (65.2) | (103.6) | |
Charged to expense | 23.5 | 63 | 116.2 | |
Ending balance | $ 8.1 | $ 10.4 | $ 12.6 | $ 8.1 |
Redeemable preferred shares - N
Redeemable preferred shares - Narrative (Details) - Series A Redeemable Convertible Preferred Stock - USD ($) $ / shares in Units, $ in Millions | Oct. 05, 2018 | Oct. 05, 2016 | Mar. 18, 2021 | Jan. 30, 2021 | Feb. 01, 2020 |
Temporary Equity [Line Items] | |||||
Redeemable convertible preferred stock, shares issued (in shares) | 625,000 | ||||
Preferred stock, purchase price | $ 625 | ||||
Shares issued, price per share (in usd per share) | $ 1,000 | ||||
Payments of stock issuance costs | $ 13.7 | ||||
Accumulated accretion of dividends | $ 7.3 | $ 5.7 | |||
Preferred stock, dividend rate, percentage | 5.00% | ||||
Percentage exceeding applicable conversion price | 175.00% | ||||
Threshold period at which shares can be converted | 20 days | ||||
Percentage of cash equal to the stated value | 101.00% | ||||
Preferred stock, increase in stated value per share (usd per share) | $ 37.97 | ||||
Subsequent Event | |||||
Temporary Equity [Line Items] | |||||
Preferred stock, increase in stated value per share (usd per share) | $ 12.97 | ||||
Maximum | |||||
Temporary Equity [Line Items] | |||||
Preferred dividends, percentage of average quarterly cash dividends (not more than) | 130.00% |
Redeemable preferred shares - R
Redeemable preferred shares - Redeemable Preferred Shares (Details) - Series A Redeemable Convertible Preferred Stock $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |
Jan. 30, 2021USD ($)$ / sharesshares | Feb. 01, 2020USD ($)$ / sharesshares | |
Temporary Equity [Line Items] | ||
Conversion rate | 12.2297 | 12.2297 |
Conversion price (in usd per share) | $ / shares | $ 81.7682 | $ 81.7682 |
Potential impact of preferred shares if-converted to common shares (in shares) | shares | 7.9 | 7.6 |
Liquidation preference | $ | $ 656.8 | $ 632.8 |
Common shares, treasury share_3
Common shares, treasury shares, reserves and dividends - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Class of Stock [Line Items] | |||
Common shares, par value (usd per share) | $ 0.18 | $ 0.18 | |
Treasury stock reissued (in shares) | 0 | 400,000 | 200,000 |
Treasury shares retired (in shares) | 0 | ||
Cumulative undeclared dividends | $ 0 | ||
Series A Redeemable Convertible Preferred Stock | |||
Class of Stock [Line Items] | |||
Dividends on redeemable convertible preferred shares | $ 1.7 | $ 1.7 | $ 1.7 |
Common shares, treasury share_4
Common shares, treasury shares, reserves and dividends - Share Repurchase (Details) - USD ($) | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Class of Stock [Line Items] | |||
Shares repurchased (shares) | 0 | 0 | 8,800,000 |
Amount repurchased | $ 0 | $ 0 | $ 485,000,000 |
Average repurchase price per share (usd per share) | $ 0 | $ 0 | $ 55.06 |
2017 Program | |||
Class of Stock [Line Items] | |||
Stock repurchase program, authorized amount | $ 600,000,000 | ||
Shares repurchased (shares) | 0 | 0 | 7,500,000 |
Amount repurchased | $ 0 | $ 0 | $ 434,400,000 |
Average repurchase price per share (usd per share) | $ 0 | $ 0 | $ 57.64 |
Remaining authorized repurchase amount | $ 165,600,000 | ||
2016 Program | |||
Class of Stock [Line Items] | |||
Stock repurchase program, authorized amount | $ 1,375,000,000 | ||
Shares repurchased (shares) | 1,300,000 | ||
Amount repurchased | $ 50,600,000 | ||
Average repurchase price per share (usd per share) | $ 39.76 |
Common shares, treasury share_5
Common shares, treasury shares, reserves and dividends - Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Jan. 30, 2021 | Oct. 31, 2020 | Aug. 01, 2020 | May 02, 2020 | Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Class of Stock [Line Items] | |||||||||||||||
Cash dividend per share (usd per share) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0.37 | $ 0.37 | $ 0.37 | $ 0.37 | $ 0.37 | $ 0.37 | $ 0.37 | $ 0.37 | $ 0 | $ 1.48 | $ 1.48 |
Total dividends | $ 0 | $ 0 | $ 0 | $ 0 | $ 19.4 | $ 19.4 | $ 19.3 | $ 19.3 | $ 19.2 | $ 19.2 | $ 19.2 | $ 21.8 | $ 0 | $ 77.4 | $ 79.4 |
Dividends payable | 19.4 | 19.4 | |||||||||||||
Dividends, preferred stock, cash | 33.5 | 32.9 | 32.9 | ||||||||||||
Series A Redeemable Convertible Preferred Stock | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Dividends, preferred stock, paid-in-kind | 8.1 | $ 8 | $ 7.9 | $ 7.8 | 31.8 | ||||||||||
Dividends, preferred stock, cash | $ 7.8 | $ 7.8 | $ 7.8 | $ 7.8 | 7.8 | $ 7.8 | $ 7.8 | $ 7.8 | $ 31.2 | 31.2 | |||||
Accrued Expenses | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Dividends payable | $ 8.1 | $ 7.8 | $ 8.1 | $ 7.8 |
Earnings (loss) per common sh_3
Earnings (loss) per common share ("EPS") - Schedule of Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
EPS – basic | |||
Net income (loss) attributable to common shareholders | $ (48.7) | $ 72.6 | $ (690.3) |
Weighted average common shares outstanding (in shares) | 52 | 51.7 | 54.7 |
Earnings (loss) per common share: basic (usd per share) | $ (0.94) | $ 1.40 | $ (12.62) |
EPS – diluted | |||
Numerator for diluted EPS | $ (48.7) | $ 72.6 | $ (690.3) |
Dilutive effect of share awards (in shares) | 0 | 0.1 | 0 |
Diluted weighted average number of common shares outstanding | 52 | 51.8 | 54.7 |
Earnings (loss) per common share: diluted (usd per share) | $ (0.94) | $ 1.40 | $ (12.62) |
Earnings (loss) per common sh_4
Earnings (loss) per common share ("EPS") - Schedule of Antidilutive Securities Excluded From the Calculation of Earnings Per Share (Details) - shares shares in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive shares excluded from the calculation of earnings per share | 9.6 | 8.5 | 8.2 |
Performance Shares | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive shares excluded from the calculation of earnings per share | 1.8 | 0.9 | 1.1 |
Series A Redeemable Convertible Preferred Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive shares excluded from the calculation of earnings per share | 7.8 | 7.6 | 7.1 |
Accumulated other comprehensi_3
Accumulated other comprehensive income (loss) - Changes in Accumulated OCI by Component and Reclassifications Out of Accumulated OCI (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | $ 1,222.6 | $ 1,201.6 | $ 2,499.8 | |
OCI before reclassifications | 15 | 9.7 | (40.6) | |
Amounts reclassified from AOCI to net income | (11.7) | (0.7) | (0.8) | |
Total shareholders’ equity | 1,190.3 | 1,222.6 | 1,201.6 | |
Total other comprehensive (loss) income | 3.3 | 9 | (42.2) | |
Balance | 1,190.3 | 1,222.6 | 1,201.6 | |
Cumulative Effect, Period of Adoption, Adjustment | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | [1] | (16.5) | ||
Total shareholders’ equity | [1] | (16.5) | ||
Accumulated other comprehensive (loss) income | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | (293.8) | (302.8) | (260.6) | |
Total shareholders’ equity | (290.5) | (293.8) | (302.8) | |
Balance | (290.5) | (293.8) | (302.8) | |
Accumulated other comprehensive (loss) income | Cumulative Effect, Period of Adoption, Adjustment | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | [1] | (0.8) | ||
Total shareholders’ equity | [1] | (0.8) | ||
Foreign currency translation | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | (250.1) | (248.4) | (212.5) | |
OCI before reclassifications | 11.2 | (1.7) | (35.9) | |
Amounts reclassified from AOCI to net income | 0 | 0 | 0 | |
Total shareholders’ equity | (238.9) | (250.1) | (248.4) | |
Total other comprehensive (loss) income | 11.2 | (1.7) | (35.9) | |
Balance | (238.9) | (250.1) | (248.4) | |
Foreign currency translation | Cumulative Effect, Period of Adoption, Adjustment | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | 0 | |||
Total shareholders’ equity | 0 | |||
Gain (losses) on available-for-sale securities, net | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | 0.3 | (0.5) | (0.1) | |
OCI before reclassifications | 0.2 | (0.2) | 0.4 | |
Amounts reclassified from AOCI to net income | 0 | 1 | 0 | |
Total shareholders’ equity | 0.5 | 0.3 | (0.5) | |
Total other comprehensive (loss) income | 0.2 | 0.8 | (0.4) | |
Balance | 0.5 | 0.3 | (0.5) | |
Gain (losses) on available-for-sale securities, net | Cumulative Effect, Period of Adoption, Adjustment | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | (0.8) | |||
Total shareholders’ equity | (0.8) | |||
Gains (losses) on cash flow hedges | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | 12.5 | 4 | 0.7 | |
OCI before reclassifications | (0.8) | 11.2 | 4.8 | |
Amounts reclassified from AOCI to net income | (12.6) | (2.7) | (1.5) | |
Total shareholders’ equity | (0.9) | 12.5 | 4 | |
Total other comprehensive (loss) income | (13.4) | 8.5 | 3.3 | |
Balance | (0.9) | 12.5 | 4 | |
Gains (losses) on cash flow hedges | Cumulative Effect, Period of Adoption, Adjustment | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | 0 | |||
Total shareholders’ equity | 0 | |||
Pension plan | Actuarial gains (losses) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | (52.4) | (53.8) | (51.1) | |
OCI before reclassifications | 4.4 | 0.4 | (3.4) | |
Amounts reclassified from AOCI to net income | 0.8 | 1 | 0.7 | |
Total shareholders’ equity | (47.2) | (52.4) | (53.8) | |
Total other comprehensive (loss) income | 5.2 | 1.4 | (2.7) | |
Balance | (47.2) | (52.4) | (53.8) | |
Pension plan | Actuarial gains (losses) | Cumulative Effect, Period of Adoption, Adjustment | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | 0 | |||
Total shareholders’ equity | 0 | |||
Pension plan | Prior service credits (costs) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | (4.1) | (4.1) | 2.4 | |
OCI before reclassifications | 0 | 0 | (6.5) | |
Amounts reclassified from AOCI to net income | 0.1 | 0 | 0 | |
Total shareholders’ equity | (4) | (4.1) | (4.1) | |
Total other comprehensive (loss) income | 0.1 | 0 | (6.5) | |
Balance | $ (4) | $ (4.1) | (4.1) | |
Pension plan | Prior service credits (costs) | Cumulative Effect, Period of Adoption, Adjustment | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | 0 | |||
Total shareholders’ equity | $ 0 | |||
[1] | Reflects reclassifications to retained earnings related to 1) unrealized gains related to the Company’s equity security investments as of February 3, 2018 from AOCI associated with the adoption of ASU 2016-01 and 2) deferred costs associated with the sale of extended service plans due to the adoption of ASU 2014-09. |
Accumulated other comprehensi_4
Accumulated other comprehensive income (loss) - Reclassifications out of AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Cost of sales | $ (3,493) | $ (3,904.2) | $ (4,024.1) |
Other operating income (loss) | 2.4 | (29.6) | 26.2 |
Interest expense, net | (32) | (35.6) | (39.7) |
Other non-operating income, net | 0 | 7 | 1.7 |
Total before income tax | (89.7) | 129.7 | (802.6) |
Income taxes | 74.5 | (24.2) | 145.2 |
Net income (loss) | (15.2) | 105.5 | (657.4) |
Reclassification out of AOCI | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net income (loss) | (11.7) | (0.7) | (0.8) |
Reclassification out of AOCI | Gains (losses) on cash flow hedges | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total before income tax | (16.8) | (3.4) | (2.1) |
Income taxes | 4.2 | 0.7 | 0.6 |
Net income (loss) | (12.6) | (2.7) | (1.5) |
Reclassification out of AOCI | Accumulated defined benefit plans adjustment | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total before income tax | 1.1 | 1.2 | 0.9 |
Income taxes | (0.2) | (0.2) | (0.2) |
Net income (loss) | 0.9 | 1 | 0.7 |
Reclassification out of AOCI | Actuarial gains (losses) | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other non-operating income, net | 1 | 1.2 | 0.9 |
Reclassification out of AOCI | Prior service credits (costs) | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other non-operating income, net | 0.1 | 0 | 0 |
Reclassification out of AOCI | Available-for-sale securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other operating income (loss) | 0 | 1 | 0 |
Income taxes | 0 | 0 | 0 |
Net income (loss) | 0 | 1 | 0 |
Reclassification out of AOCI | Foreign currency contracts | Gains (losses) on cash flow hedges | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Cost of sales | 0 | (1.1) | 0.7 |
Other operating income (loss) | (0.6) | 0 | 0 |
Reclassification out of AOCI | Interest rate swaps | Gains (losses) on cash flow hedges | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Interest expense, net | 0 | (0.6) | (1.9) |
Reclassification out of AOCI | Commodity contracts | Gains (losses) on cash flow hedges | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Cost of sales | (6.9) | (1.7) | (0.9) |
Other operating income (loss) | $ (9.3) | $ 0 | $ 0 |
Income taxes - Summary of Incom
Income taxes - Summary of Income and Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Income (loss) before income taxes: | |||
– US | $ (173.4) | $ 32.3 | $ (1,135.8) |
– Foreign | 83.7 | 97.4 | 333.2 |
Income (loss) before income taxes | (89.7) | 129.7 | (802.6) |
Current taxation: | |||
– US | (222.2) | 3 | (55.2) |
– Foreign | 0.7 | 1.9 | 15.8 |
Deferred taxation: | |||
– US | 158.4 | 17 | (85.8) |
– Foreign | (11.4) | 2.3 | (20) |
Total income tax expense (benefit) | $ (74.5) | $ 24.2 | $ (145.2) |
Income taxes - Additional Infor
Income taxes - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Operating Loss Carryforwards [Line Items] | ||||
Statutory tax rate (percent) | 21.00% | 21.00% | 21.00% | |
Income tax benefit, two year carryforward | $ 74 | |||
Income tax benefit, five year carryforward | 26.4 | |||
Valuation allowance | 83.9 | $ 38.4 | ||
Capital loss carryforwards | 13.9 | 12.9 | ||
Increase in valuation allowance | 45.5 | |||
Unrecognized tax benefits | 25.4 | 23.5 | $ 18.1 | $ 12 |
Accrued interest related to unrecognized tax benefits | 4.1 | |||
Accrued penalties | 0.6 | |||
Increase resulting from settlements with taxing authorities | 23.3 | |||
State and Local Jurisdiction | ||||
Operating Loss Carryforwards [Line Items] | ||||
Valuation allowance | 50 | |||
Domestic Tax Authority | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carry forwards | 29.5 | |||
Capital loss carryforwards | 2.7 | |||
Internal Revenue Service (IRS) | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carry forwards | 11.5 | |||
Foreign Tax Authority | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carry forwards | 18.3 | |||
Deferred tax assets | 8.7 | |||
Foreign capital loss carry forward | $ 11.2 | $ 10.5 | ||
Bermuda | ||||
Operating Loss Carryforwards [Line Items] | ||||
Statutory tax rate (percent) | 0.00% |
Income taxes - Reconciliation o
Income taxes - Reconciliation of Statutory Tax Rate to Effective Tax Rate (Details) | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Income Tax Disclosure [Abstract] | |||
US federal income tax rates | 21.00% | 21.00% | 21.00% |
US state income taxes | 4.10% | 3.10% | 2.30% |
Differences between US federal and foreign statutory income tax rates | 0.10% | 1.30% | 0.30% |
Expenditures permanently disallowable for tax purposes, net of permanent tax benefits | (4.70%) | 3.30% | (0.80%) |
Impact of global reinsurance arrangements | 14.10% | (20.30%) | 3.10% |
Impact of global financing arrangements | 0.00% | 0.00% | 4.20% |
Impairment of goodwill | (2.40%) | 7.50% | (13.40%) |
Out of period adjustment | 0.00% | 0.00% | 1.40% |
CARES Act | 111.90% | 0.00% | 0.00% |
Valuation allowance | (55.50%) | 0.00% | 0.00% |
Other items | (5.50%) | 2.80% | 0.00% |
Effective tax rate | 83.10% | 18.70% | 18.10% |
Income taxes - Components of De
Income taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Assets | ||
Foreign property, plant and equipment | $ 7.3 | $ 6.5 |
Revenue deferral | 95.6 | 102.5 |
Derivative instruments | 0.3 | |
Lease liabilities | 331.5 | 380.6 |
Deferred compensation | 6.7 | 7.3 |
Share-based compensation | 4.4 | 4.1 |
Other temporary differences | 57.2 | 77.7 |
Net operating losses and foreign tax credits | 56.5 | 137 |
Value of capital losses | 13.9 | 12.9 |
Total gross deferred tax assets (liabilities) | 573.4 | 728.6 |
Valuation allowance | (83.9) | (38.4) |
Deferred tax assets (liabilities) | 489.5 | 690.2 |
(Liabilities) | ||
Intangible assets | (41.7) | (63) |
US property, plant and equipment | (55.3) | (55.4) |
Inventory valuation | (230.4) | (203.1) |
Derivative instruments | (4.3) | |
Lease assets | (295.1) | (358.2) |
Retirement benefit obligations | (9.8) | (6.7) |
Total gross deferred tax assets (liabilities) | (632.3) | (690.7) |
Total | ||
Total gross deferred tax assets (liabilities) | (58.9) | 37.9 |
Valuation allowance | (83.9) | (38.4) |
Deferred tax liabilities, net | (142.8) | (0.5) |
Deferred tax assets | 16.4 | 4.7 |
Non-current liabilities | $ (159.2) | $ (5.2) |
Income taxes - Summary of Activ
Income taxes - Summary of Activity of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Reconciliation of Unrecognized Tax Benefits | |||
Unrecognized tax benefits, beginning of period | $ 23.5 | $ 18.1 | $ 12 |
Increases related to current year tax positions | 1 | 2 | 2.5 |
Increases related to prior year tax positions | 3.4 | 6 | 6.2 |
Lapse of statute of limitations | (2.6) | (2.6) | (2.4) |
Difference on foreign currency translation | 0.1 | ||
Difference on foreign currency translation | 0 | (0.2) | |
Unrecognized tax benefits, end of period | $ 25.4 | $ 23.5 | $ 18.1 |
Other operating income (loss) -
Other operating income (loss) - Components of Other Operating Income, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Other Income and Expenses [Abstract] | |||
Interest income from in-house customer finance programs | $ 4.2 | $ 0 | $ 22.8 |
Shareholder litigation charge, net of insurance recoveries | (7.5) | (33.2) | 0 |
De-designated cash flow hedges | 9.9 | 0 | 0 |
Other | (4.2) | 3.6 | 3.4 |
Other operating income (loss) | $ 2.4 | $ (29.6) | $ 26.2 |
Accounts receivable, net - Port
Accounts receivable, net - Portfolio of Accounts Receivable (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Receivables [Abstract] | ||
Customer in-house finance receivables, net | $ 72 | $ 0 |
Accounts receivable, trade | 11.6 | 34.4 |
Accounts receivable, held for sale | 5.1 | 4.4 |
Accounts receivable, net | $ 88.7 | $ 38.8 |
Accounts receivable, net - Cred
Accounts receivable, net - Credit Quality of Finance Receivables (Details) $ in Millions | Jan. 30, 2021USD ($) |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Total at amortized cost | $ 97.5 |
Near Prime | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Total at amortized cost | 46.6 |
Subprime | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Total at amortized cost | 38.9 |
Deep Subprime | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Total at amortized cost | $ 12 |
Accounts receivable, net - Past
Accounts receivable, net - Past Due Status (Details) $ in Millions | Jan. 30, 2021USD ($) |
Financing Receivable, Past Due [Line Items] | |
Current | $ 81.3 |
Total at amortized cost | 97.5 |
1 - 30 days past due | |
Financing Receivable, Past Due [Line Items] | |
Financing receivable, past due | 9.1 |
31 - 60 days past due | |
Financing Receivable, Past Due [Line Items] | |
Financing receivable, past due | 2.6 |
61 - 90 days past due | |
Financing Receivable, Past Due [Line Items] | |
Financing receivable, past due | 1.7 |
Greater than 90 days past due | |
Financing Receivable, Past Due [Line Items] | |
Financing receivable, past due | $ 2.8 |
Accounts receivables, net - Rol
Accounts receivables, net - Rollforward of Allowance for Credit Losses (Details) $ in Millions | 12 Months Ended |
Jan. 30, 2021USD ($) | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
Beginning balance | $ 0 |
Provision for credit losses | 26.1 |
Write-offs | (0.6) |
Recoveries | 0 |
Ending balance | $ 25.5 |
Accounts receivable, net - Allo
Accounts receivable, net - Allowance for Credit Losses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 0 | ||
Charge-offs, net | (0.6) | ||
Recoveries | 0 | ||
Reversal of allowance on receivables sold | 0 | $ 0 | $ (160.4) |
Ending balance | $ 25.5 | 0 | |
Consumer Portfolio Segment | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 0 | 113.5 | |
Charge-offs, net | (56.3) | ||
Recoveries | (4.2) | ||
Provision | 54.6 | ||
Reversal of allowance on receivables sold | (107.6) | ||
Ending balance | $ 0 |
Inventories - Summary of Invent
Inventories - Summary of Inventory Components (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 45.3 | $ 56.2 |
Finished goods | 1,987.2 | 2,275.5 |
Total inventories | $ 2,032.5 | $ 2,331.7 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Consignment inventory | ||
Inventories | ||
Other inventory | $ 387.4 | $ 625.7 |
Inventories - Rollforward of In
Inventories - Rollforward of Inventory Reserves (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 67 | $ 95.3 | $ 40.6 |
Charged to profit | 78.1 | 80.2 | 131.4 |
Utilization | (92.2) | (108.5) | (76.7) |
Balance at end of period | 52.9 | 67 | 95.3 |
Signet Path to Brillance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 20.8 | 51.6 | |
Charged to profit | 1.4 | 9.2 | 62.2 |
Utilization | (20) | (40) | (10.6) |
Balance at end of period | $ 2.2 | $ 20.8 | $ 51.6 |
Property, plant and equipment_3
Property, plant and equipment, net - Summary of Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,803.6 | $ 1,806.6 |
Accumulated depreciation and amortization | (1,198.1) | (1,064.7) |
Property, plant and equipment, net | 605.5 | 741.9 |
Land and buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 21.8 | 23.4 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 616.9 | 640.7 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 669.9 | 601.2 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 122.4 | 199.1 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 334.2 | 246.9 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 38.4 | $ 95.3 |
Property, plant and equipment_4
Property, plant and equipment, net - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense | $ 175.1 | $ 177.1 | $ 179.6 |
Property and equipment impairment | $ 28.1 | $ 0 | $ 0 |
Asset Impairments - Schedule of
Asset Impairments - Schedule of Asset Impairment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Asset Impairment Charges [Abstract] | |||
Goodwill impairment | $ 10.7 | $ 47.7 | $ 521.2 |
Indefinite-lived intangible asset impairment | 83.3 | 0 | 214.2 |
Property and equipment impairment | 28.1 | 0 | 0 |
Operating lease ROU asset impairment | 36.9 | 0 | 0 |
Total impairment | 159 | $ 47.7 | $ 735.4 |
Gain on termination or modification of lease | $ 4.4 |
Asset Impairments - Narrative (
Asset Impairments - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Asset Impairment Charges [Abstract] | |||
Property and equipment impairment | $ 28.1 | $ 0 | $ 0 |
Operating lease ROU asset impairment | 36.9 | $ 0 | $ 0 |
Gain on termination or modification of lease | $ 4.4 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Leases [Abstract] | |||
Accrued rent | $ 82 | ||
Operating lease ROU asset impairment | $ 36.9 | $ 0 | $ 0 |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rate (Details) | Jan. 30, 2021 | Feb. 01, 2020 |
Leases [Abstract] | ||
Operating lease, weighted average remaining lease term (years) | 6 years 2 months 12 days | 6 years 8 months 12 days |
Operating lease, weighted average discount rate, percent | 5.50% | 5.50% |
Leases - Total Lease Costs For
Leases - Total Lease Costs For Operating Leases (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 30, 2021 | Feb. 01, 2020 | |
Leases [Abstract] | ||
Operating lease cost | $ 436.3 | $ 460.3 |
Short-term lease cost | 16.3 | 19.4 |
Variable lease cost | 110.3 | 107.1 |
Sublease income | (1.8) | (2) |
Total lease cost | $ 561.1 | $ 584.8 |
Leases - Schedule of Rent Expen
Leases - Schedule of Rent Expense (Details) $ in Millions | 12 Months Ended |
Feb. 02, 2019USD ($) | |
Leases [Abstract] | |
Minimum rentals | $ 510.3 |
Contingent rent | 8.1 |
Sublease income | (1.1) |
Total rent expense | $ 517.3 |
Leases - Schedule of Supplement
Leases - Schedule of Supplementary Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 30, 2021 | Feb. 01, 2020 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 400.4 | $ 467.7 |
Operating lease right-of-use assets obtained in exchange for lease obligations | 70.8 | 149.9 |
Reduction in the carrying amount of ROU assets | $ 348.3 | $ 360.1 |
Leases - Future Minimum Payment
Leases - Future Minimum Payments For Operating Leases (Details) $ in Millions | Jan. 30, 2021USD ($) |
Leases [Abstract] | |
Fiscal 2022 | $ 503.9 |
Fiscal 2023 | 349.8 |
Fiscal 2024 | 275.3 |
Fiscal 2025 | 214.6 |
Fiscal 2026 | 157.2 |
Thereafter | 396.7 |
Total minimum lease payments | 1,897.5 |
Less: Imputed interest | (372.9) |
Present value of lease liabilities | $ 1,524.6 |
Goodwill and intangibles - Addi
Goodwill and intangibles - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
May 02, 2020 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | May 05, 2018 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||||||||
Goodwill, impairment loss | $ 10.7 | $ 47.7 | $ 521.2 | |||||
Indefinite-lived intangible asset impairment | 83.3 | 0 | 214.2 | |||||
Amortization of intangible assets | 0.9 | 0.9 | 4 | |||||
Amortization of intangible liabilities | 5.4 | 5.5 | 7.9 | |||||
North America | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Goodwill, impairment loss | $ 10.7 | $ 47.7 | $ 10.7 | $ 47.7 | 308.8 | |||
Impairment of intangible assets (excluding goodwill) | $ 74.3 | |||||||
North America | R2Net Inc. | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Goodwill, impairment loss | 12.5 | 208.8 | ||||||
Goodwill and intangible asset impairment | $ 69.3 | |||||||
North America | Zales | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Goodwill, impairment loss | $ 35.2 | |||||||
Impairment of intangible assets (excluding goodwill) | $ 139.9 | |||||||
Indefinite-lived intangible asset impairment | $ 83.3 | |||||||
Other | R2Net Inc. | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Goodwill, impairment loss | $ 3.6 |
Goodwill and intangibles - Summ
Goodwill and intangibles - Summary of Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
May 02, 2020 | Aug. 03, 2019 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Goodwill [Roll Forward] | |||||
Beginning balance | $ 248.8 | $ 248.8 | |||
Impairment | (10.7) | $ (47.7) | $ (521.2) | ||
Ending balance | 238 | 248.8 | |||
North America | |||||
Goodwill [Roll Forward] | |||||
Beginning balance | 248.8 | 248.8 | 296.6 | ||
Impairment | $ (10.7) | $ (47.7) | (10.7) | (47.7) | (308.8) |
Impact of foreign exchange | (0.1) | (0.1) | |||
Ending balance | $ 238 | $ 248.8 | 296.6 | ||
R2Net Inc. | North America | |||||
Goodwill [Roll Forward] | |||||
Impairment | $ (12.5) | $ (208.8) |
Goodwill and intangibles - Comp
Goodwill and intangibles - Composition of Intangible Assets and Liabilities (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Intangible assets, net: | ||
Definite-lived intangible assets, gross carrying amount | $ 53.6 | $ 53.2 |
Definite-lived intangible assets, accumulated amortization | (52.2) | (50.9) |
Net carrying amount | 1.4 | 2.3 |
Indefinite-lived intangible assets | 476.8 | 475.4 |
Indefinite-lived intangible assets, accumulated impairment loss | (299.2) | (213.9) |
Indefinite-lived intangible assets, net | 177.6 | 261.5 |
Intangible assets, gross | 530.4 | 528.6 |
Total intangible assets, net | 179 | 263.8 |
Definite-lived intangible liabilities: | ||
Gross carrying amount | (114.2) | (113.9) |
Accumulated amortization | 103.7 | 98 |
Total | $ (10.5) | $ (15.9) |
Goodwill and intangibles - Su_2
Goodwill and intangibles - Summary of Future Amortization (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Intangible assets, net amortization | ||
2022 | $ 0.8 | |
2023 | 0.6 | |
Net carrying amount | 1.4 | $ 2.3 |
Intangible liabilities amortization | ||
2022 | (5.4) | |
2023 | (5.1) | |
Total | $ (10.5) |
Investments - Summary of Availa
Investments - Summary of Available-for-sale Securities (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Total investment in debt securities | $ 14.9 | $ 20.1 |
Unrealized Gain (Loss) | 0.5 | 0.3 |
Fair Value | 15.4 | 20.4 |
US Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total investment in debt securities | 5.6 | 7.2 |
Unrealized Gain (Loss) | 0.1 | 0 |
Fair Value | 5.7 | 7.2 |
US government agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total investment in debt securities | 3.1 | 4.6 |
Unrealized Gain (Loss) | 0.1 | 0.1 |
Fair Value | 3.2 | 4.7 |
Corporate bonds and notes | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total investment in debt securities | 6.2 | 8.3 |
Unrealized Gain (Loss) | 0.3 | 0.2 |
Fair Value | $ 6.5 | $ 8.5 |
Investments - Additional Inform
Investments - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Debt Securities, Available-for-sale [Line Items] | |||
Realized gains | $ 0 | $ 1 | $ 0 |
Realized losses | 0 | $ 0 | |
Available-for-sale Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Assets held by insurance regulators | $ 3.4 | $ 3.7 |
Investments - Summary of Invest
Investments - Summary of Investments in Debt Securities Outstanding (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Cost | ||
Less than one year | $ 3.9 | |
Year two through year five | 11 | |
Total investment in debt securities | 14.9 | $ 20.1 |
Fair Value | ||
Less than one year | 3.9 | |
Year two through year five | 11.5 | |
Total investment in debt securities | $ 15.4 | $ 20.4 |
Derivatives - Additional Inform
Derivatives - Additional Information (Details) oz in Thousands | 12 Months Ended | ||
Jan. 30, 2021USD ($)oz | Feb. 01, 2020USD ($)oz | Mar. 31, 2015USD ($) | |
Maximum | |||
Derivative [Line Items] | |||
Remaining settlement period | 12 months | ||
Cash Flow Hedging | |||
Derivative [Line Items] | |||
Expected pre-tax derivative losses | $ (1,000,000) | ||
Interest rate swaps | |||
Derivative [Line Items] | |||
Aggregate notional amount | $ 300,000,000 | ||
Foreign currency contracts | Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Aggregate notional amount | 107,600,000 | $ 224,200,000 | |
Foreign currency contracts | Cash Flow Hedging | |||
Derivative [Line Items] | |||
Aggregate notional amount | $ 12,500,000 | $ 23,000,000 | |
Remaining settlement period | 12 months | 12 months | |
Commodity contracts | Cash Flow Hedging | |||
Derivative [Line Items] | |||
Remaining settlement period | 3 months | 12 months | |
Ounces of gold | oz | 1 | 63 |
Derivatives - Fair Value of Pre
Derivatives - Fair Value of Presentation of Derivative Assets and Liabilities (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | $ 0.1 | $ 12.4 |
Fair value of derivative liabilities | (0.4) | (0.9) |
Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | (0.4) | (0.8) |
Commodity contracts | Designated as Hedging Instrument | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 0 | 11.8 |
Commodity contracts | Designated as Hedging Instrument | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | (0.1) | 0 |
Foreign currency contracts | Designated as Hedging Instrument | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | (0.3) | (0.8) |
Foreign currency contracts | Not Designated as Hedging Instrument | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 0.1 | 0.6 |
Foreign currency contracts | Not Designated as Hedging Instrument | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | $ 0 | $ (0.1) |
Derivatives - Derivatives Desig
Derivatives - Derivatives Designated as Cash Flow Hedges (Details) - Cash Flow Hedging - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 |
Derivative [Line Items] | |||
Pre-tax gains (losses) recorded in AOCI | $ (1.1) | $ 16.7 | |
Foreign currency contracts | |||
Derivative [Line Items] | |||
Pre-tax gains (losses) recorded in AOCI | (0.7) | (1) | $ 0.7 |
Commodity contracts | |||
Derivative [Line Items] | |||
Pre-tax gains (losses) recorded in AOCI | $ (0.4) | $ 17.7 | $ 4 |
Derivatives - Derivative Instru
Derivatives - Derivative Instruments Designated as Cash Flow Hedges in OCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Current period gains (losses) recognized in OCI | $ (1) | $ 14.8 | $ 6.2 |
Gains reclassified from AOCI to net income | (16.8) | (3.4) | (2.1) |
Cost of sales | (3,493) | (3,904.2) | (4,024.1) |
Other operating income (loss) | 2.4 | (29.6) | 26.2 |
Interest expense, net | (32) | (35.6) | (39.7) |
Cash Flow Hedging | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Gains (losses) recorded in AOCI, beginning of period | 16.7 | ||
Gains (losses) recorded in AOCI, end of period | (1.1) | 16.7 | |
Foreign currency contracts | Cash Flow Hedging | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Gains (losses) recorded in AOCI, beginning of period | (1) | 0.7 | |
Current period gains (losses) recognized in OCI | 0.9 | (0.6) | |
Gains (losses) recorded in AOCI, end of period | (0.7) | (1) | 0.7 |
Foreign currency contracts | Cash Flow Hedging | Cost of sales | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Gains reclassified from AOCI to net income | 0 | (1.1) | |
Foreign currency contracts | Cash Flow Hedging | Other Operating Income (Expense) | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Gains reclassified from AOCI to net income | (0.6) | 0 | |
Commodity contracts | Cash Flow Hedging | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Gains (losses) recorded in AOCI, beginning of period | 17.7 | 4 | |
Current period gains (losses) recognized in OCI | (1.9) | 15.4 | |
Gains (losses) recorded in AOCI, end of period | (0.4) | 17.7 | 4 |
Commodity contracts | Cash Flow Hedging | Cost of sales | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Gains reclassified from AOCI to net income | (6.9) | (1.7) | |
Commodity contracts | Cash Flow Hedging | Other Operating Income (Expense) | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Gains reclassified from AOCI to net income | (9.3) | 0 | |
Interest rate contract | Cash Flow Hedging | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Gains (losses) recorded in AOCI, beginning of period | 0 | 0.6 | |
Current period gains (losses) recognized in OCI | 0 | 0 | |
Gains (losses) recorded in AOCI, end of period | 0 | 0 | $ 0.6 |
Interest rate contract | Cash Flow Hedging | Interest expense, net | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Gains reclassified from AOCI to net income | $ 0 | $ (0.6) |
Derivatives - Derivatives Not D
Derivatives - Derivatives Not Designated as Hedging Instruments (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 30, 2021 | Feb. 01, 2020 | |
Not Designated as Hedging Instrument | Foreign currency contracts | Other operating income (loss) | ||
Derivative [Line Items] | ||
Foreign currency contracts not designated as hedging | $ 2.2 | $ (3.1) |
Fair value measurement - Fair V
Fair value measurement - Fair Value of Assets and Liabilities (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 15.5 | $ 32.8 |
Liabilities | (0.4) | (0.9) |
US Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 5.7 | 7.2 |
US government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 3.2 | 4.7 |
Corporate bonds and notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 6.5 | 8.5 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 5.7 | 7.2 |
Liabilities | 0 | 0 |
Level 1 | US Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 5.7 | 7.2 |
Level 1 | US government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Level 1 | Corporate bonds and notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 9.8 | 25.6 |
Liabilities | (0.4) | (0.9) |
Level 2 | US Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Level 2 | US government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 3.2 | 4.7 |
Level 2 | Corporate bonds and notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 6.5 | 8.5 |
Foreign currency contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0.1 | 0.6 |
Liabilities | (0.3) | (0.9) |
Foreign currency contracts | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Foreign currency contracts | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0.1 | 0.6 |
Liabilities | (0.3) | (0.9) |
Commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 11.8 |
Liabilities | (0.1) | 0 |
Commodity contracts | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Commodity contracts | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 11.8 |
Liabilities | $ (0.1) | $ 0 |
Fair value measurement - Narrat
Fair value measurement - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Jun. 30, 2018 | Aug. 04, 2018 | Jan. 30, 2021 | |
Fair Value Disclosures [Abstract] | |||
Sale of receivables. percentage deferred until second anniversary | 5.00% | 5.00% | |
Deferred payment, fair value disclosure | $ 23.5 |
Fair value measurement - Outsta
Fair value measurement - Outstanding Debt (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Outstanding debt | $ 146.7 | $ 245.9 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Outstanding debt | 145.1 | 244.8 |
Senior Notes | Level 2 | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Outstanding debt | 146.7 | 146.4 |
Senior Notes | Level 2 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Outstanding debt | 145.1 | 144.8 |
Term Loan | Level 2 | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Outstanding debt | 0 | 99.5 |
Term Loan | Level 2 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Outstanding debt | $ 0 | $ 100 |
Retirement plans - Change in UK
Retirement plans - Change in UK Plan Assets (Details) - Pension plan - Foreign Plan - USD ($) $ in Millions | 12 Months Ended | |
Jan. 30, 2021 | Feb. 01, 2020 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value at beginning of year | $ 281.9 | $ 245.5 |
Actual return on UK Plan assets | 11.9 | 36.8 |
Employer contributions | 4.4 | 5.3 |
Members’ contributions | 0 | 0.2 |
Benefits paid | (9.8) | (9.4) |
Foreign currency translation | 10.8 | 3.5 |
Fair value at end of year | $ 299.2 | $ 281.9 |
Retirement plans - Change in _2
Retirement plans - Change in UK Benefit Obligation (Details) - Pension plan - Foreign Plan - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | $ 243.4 | $ 214.9 | |
Service cost | 0 | 0.7 | $ 0.9 |
Interest cost | 4 | 5.5 | 5.8 |
Members’ contributions | 0 | 0.2 | |
Actuarial loss | 1.4 | 29.2 | |
Benefits paid | (9.8) | (9.4) | |
Foreign currency translation | 8.6 | 2.3 | |
Benefit obligation at end of year | 247.6 | 243.4 | $ 214.9 |
Funded status at end of year | $ 51.6 | $ 38.5 |
Retirement plans - Components o
Retirement plans - Components of UK Net Asset Recognized (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Pension plan | Foreign Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Other assets (non current) | $ 51.6 | $ 38.5 |
Retirement plans - AOCI Items n
Retirement plans - AOCI Items not yet Recognized (Details) - Pension plan - Foreign Plan - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 |
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial losses | $ (47.2) | $ (52.4) | $ (53.8) |
Net prior service costs | $ (4) | $ (4.1) | $ (4.1) |
Retirement plans - Additional I
Retirement plans - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021USD ($)plan | Feb. 01, 2020USD ($) | Feb. 02, 2019USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Liability, defined contribution plan | $ 33.3 | $ 35.4 | |
Pension plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer discretionary contribution amount | $ 3.2 | 9.1 | $ 10.4 |
Employer matching contribution, percent of match | 50.00% | ||
Employer matching contribution, maximum, percent of employees' gross pay | 6.00% | ||
Number of US non-qualified deferred compensation plans | plan | 2 | ||
Cost recognized | $ 0.8 | 3.6 | 3.6 |
Foreign Plan | Pension plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Future amortization of gain (loss) | (0.8) | ||
Future amortization of prior service cost | (0.1) | ||
Accumulated benefit obligation | 247.6 | 243.4 | |
Employer contributions | 4.4 | 5.3 | |
Employer discretionary contribution amount | 2.4 | $ 2.4 | $ 2.3 |
Foreign Plan | Pension plan | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Estimated future employer contributions in next fiscal year | $ 4.7 | ||
Foreign Plan | Pension plan | Debt Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations | 74.00% | ||
Foreign Plan | Pension plan | Diversified growth funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations | 21.00% | ||
Foreign Plan | Pension plan | Diversified equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations | 4.00% | ||
Foreign Plan | Pension plan | Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations | 1.00% |
Retirement plans - Components_2
Retirement plans - Components of Net Periodic Pension Cost (Details) - Pension plan - Foreign Plan - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 0 | $ (0.7) | $ (0.9) |
Interest cost | (4) | (5.5) | (5.8) |
Expected return on UK Plan assets | 5.5 | 7.8 | 8.4 |
Amortization of unrecognized actuarial losses | (0.9) | (1.2) | (0.9) |
Amortization of unrecognized net prior service costs | (0.1) | 0 | 0 |
Total net periodic benefit (cost) income | 0.5 | 0.4 | 0.8 |
Other changes in assets and benefit obligations recognized in OCI | 6.5 | 1.7 | (11.3) |
Total recognized in net periodic pension benefit (cost) and OCI | $ 7 | $ 2.1 | $ (10.5) |
Retirement plans - Assumptions
Retirement plans - Assumptions used to Determine Benefit Obligations and Periodic Pension Costs (Details) - Pension plan - Foreign Plan | 12 Months Ended | |
Jan. 30, 2021 | Feb. 01, 2020 | |
Assumptions used to determine benefit obligations (at the end of the year): | ||
Discount rate | 1.60% | 1.70% |
Assumptions used to determine net periodic pension costs (at the start of the year): | ||
Discount rate | 1.70% | 2.70% |
Expected return on UK Plan assets | 2.20% | 3.50% |
Salary increases | 1.50% |
Retirement plans - Fair Value M
Retirement plans - Fair Value Measurements of Plan Assets (Details) - Foreign Plan - Pension plan - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 299.2 | $ 281.9 | $ 245.5 |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 209.5 | 193.8 | |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 69.2 | 63.9 | |
Diversified equity securities | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 13 | 15.1 | |
Diversified equity securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Diversified equity securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 13 | 15.1 | |
Diversified growth funds | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 44.4 | 49.8 | |
Diversified growth funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 44.4 | 49.8 | |
Diversified growth funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Diversified growth funds | NAV | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 18 | 17.8 | |
Fixed income – government bonds | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 161.4 | 139.7 | |
Fixed income – government bonds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 161.4 | 139.7 | |
Fixed income – government bonds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Corporate bonds and notes | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 56.2 | 48.8 | |
Corporate bonds and notes | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Corporate bonds and notes | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 56.2 | 48.8 | |
Cash | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3.7 | 4.3 | |
Cash | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3.7 | 4.3 | |
Cash | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Property | NAV | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 2.5 | $ 6.4 |
Retirement plans - Future Benef
Retirement plans - Future Benefits Payments Estimated to be Paid (Details) - Pension plan - Foreign Plan $ in Millions | Jan. 30, 2021USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
Fiscal 2022 | $ 9.7 |
Fiscal 2023 | 9.6 |
Fiscal 2024 | 9.6 |
Fiscal 2025 | 9.5 |
Fiscal 2026 | 9.7 |
Next five fiscal years | $ 49.3 |
Retirement plans - Fair Value o
Retirement plans - Fair Value of Unfunded, Non-qualified Deferred Compensation Plans Assets (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution plan, plan assets, amount | $ 28 | $ 27.5 |
Corporate-owned life insurance plans | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution plan, plan assets, amount | 6.3 | 6.5 |
Money market funds | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution plan, plan assets, amount | 21.7 | 21 |
Level 1 | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution plan, plan assets, amount | 21.7 | 21 |
Level 1 | Corporate-owned life insurance plans | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution plan, plan assets, amount | 0 | 0 |
Level 1 | Money market funds | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution plan, plan assets, amount | 21.7 | 21 |
Level 2 | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution plan, plan assets, amount | 6.3 | 6.5 |
Level 2 | Corporate-owned life insurance plans | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution plan, plan assets, amount | 6.3 | 6.5 |
Level 2 | Money market funds | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution plan, plan assets, amount | $ 0 | $ 0 |
Loans, overdrafts and long-te_3
Loans, overdrafts and long-term debt - Summary (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Debt Instrument [Line Items] | ||
Total debt | $ 147.6 | $ 613.1 |
Less: Current portion of loans and overdrafts | 0 | (95.6) |
Less: Unamortized capitalized debt issuance fees | (0.9) | (1.6) |
Total long-term debt | 146.7 | 515.9 |
Other loans and bank overdrafts | ||
Debt Instrument [Line Items] | ||
Total debt | 0 | 95.6 |
Senior Notes, net of unamortized discount | Senior Unsecured Notes | ||
Debt Instrument [Line Items] | ||
Total debt | 147.6 | 147.5 |
Revolving Credit Facility | Senior Asset-Based Credit Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Total debt | 0 | 270 |
Term Loan Facility | Senior Asset-Based Credit Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Total debt | $ 0 | $ 100 |
Loans, overdrafts and long-te_4
Loans, overdrafts and long-term debt - Schedule of Maturities of Long-term Debt (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Debt Disclosure [Abstract] | ||
Fiscal 2022 | $ 0 | |
Fiscal 2023 | 0 | |
Fiscal 2024 | 0 | |
Fiscal 2025 | 147.6 | |
Fiscal 2026 | 0 | |
Thereafter | 0 | |
Gross Debt | $ 147.6 | $ 613.1 |
Loans, overdrafts and long-te_5
Loans, overdrafts and long-term debt - Additional Information (Detail) | May 02, 2020USD ($) | Sep. 27, 2019USD ($) | Jan. 30, 2021USD ($) | Jan. 30, 2021USD ($) | Feb. 01, 2020USD ($) | Feb. 02, 2019USD ($) | May 19, 2014USD ($) |
Debt Instrument [Line Items] | |||||||
Repayments of senior debt | $ 0 | $ 241,500,000 | $ 0 | ||||
Gain on extinguishment of debt | (400,000) | 6,200,000 | 0 | ||||
Proceeds from revolving credit facilities | 900,000,000 | 858,300,000 | 787,000,000 | ||||
Long-term debt, gross | $ 147,600,000 | 147,600,000 | 613,100,000 | ||||
Senior Unsecured Notes Due in 2024 | Signet UK Finance plc | |||||||
Debt Instrument [Line Items] | |||||||
Face amount | $ 400,000,000 | ||||||
Stated interest rate | 4.70% | ||||||
Other loans and bank overdrafts | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt, gross | 0 | 0 | 87,500,000 | ||||
Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Unamortized debt issuance costs | 2,000,000 | ||||||
Senior Unsecured Notes Due in 2024 | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Unamortized debt issuance costs | 2,600,000 | ||||||
Repayments of senior debt | $ 239,600,000 | ||||||
Redemption price per $1,000 of principal amount | 950 | ||||||
Gain on extinguishment of debt | 8,200,000 | ||||||
Payment for debt extinguishment third party fees | 1,900,000 | ||||||
Unamortized debt issuance expense | 900,000 | 900,000 | 1,100,000 | ||||
Amortization related to capitalized fees | 200,000 | 600,000 | $ 700,000 | ||||
Long-term debt, gross | 147,600,000 | 147,600,000 | 147,500,000 | ||||
Senior Asset-Based Credit Facility | Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Unamortized debt issuance expense | 6,400,000 | 6,400,000 | 8,100,000 | ||||
Amortization related to capitalized fees | 1,700,000 | 600,000 | |||||
Term Loan Facility | |||||||
Debt Instrument [Line Items] | |||||||
Unamortized debt issuance costs | 400,000 | ||||||
Term Loan Facility | Senior Asset-Based Credit Facility | Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Face amount | 100,000,000 | 100,000,000 | |||||
Long-term debt, gross | $ 0 | $ 0 | $ 100,000,000 | ||||
Term Loan Facility | Senior Asset-Based Credit Facility | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate at period end | 1.70% | 1.70% | 2.80% | ||||
Revolving Credit Facility | Senior Asset-Based Credit Facility | Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility, maximum borrowing capacity | $ 1,500,000,000 | ||||||
Stand-by letters of credit | $ 19,000,000 | $ 19,000,000 | $ 14,900,000 | ||||
Line of credit facility, remaining borrowing capacity | 1,300,000,000 | $ 1,300,000,000 | 1,200,000,000 | ||||
Proceeds from revolving credit facilities | $ 900,000,000 | ||||||
Covenant, minimum coverage ratio | 1 | ||||||
Debt covenant, fixed covenant ratio threshold | 136,000,000 | $ 136,000,000 | |||||
Capitalized fees | 8,700,000 | 8,700,000 | |||||
Long-term debt, gross | $ 0 | $ 0 | $ 270,000,000 |
Accrued expenses and other cu_3
Accrued expenses and other current liabilities - Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Payables and Accruals [Abstract] | ||
Accrued compensation and benefits | $ 111.6 | $ 63.1 |
Accrued advertising | 52.3 | 33.8 |
Other taxes | 69.3 | 32.8 |
Payroll taxes | 27.5 | 11.7 |
Shareholder litigation | 0 | 240.6 |
Accrued expenses | 233.4 | 315 |
Total accrued expenses and other current liabilities | $ 494.1 | $ 697 |
Accrued expenses and other cu_4
Accrued expenses and other current liabilities - Additional Information (Detail) | 12 Months Ended |
Jan. 30, 2021 | |
Payables and Accruals [Abstract] | |
Lifetime diamond guarantee inspection period | 6 months |
Accrued expenses and other cu_5
Accrued expenses and other current liabilities - Summary of Activity in Warranty Reserve (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Balance at beginning of period | $ 36.3 | $ 33.2 | $ 37.2 |
Warranty expense | 8.5 | 13.5 | 8 |
Utilized | (7.5) | (10.4) | (12) |
Balance at end of period | $ 37.3 | $ 36.3 | $ 33.2 |
Accrued expenses and other cu_6
Accrued expenses and other current liabilities - Components of Warranty Reserve (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 |
Payables and Accruals [Abstract] | ||||
Current liabilities | $ 10.7 | $ 10.6 | ||
Other liabilities - non-current (see Note 25) | 26.6 | 25.7 | ||
Included within accrued expenses above | $ 37.3 | $ 36.3 | $ 33.2 | $ 37.2 |
Other liabilities - non-curre_3
Other liabilities - non-current - Summary of Other Liabilities (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Other Liabilities Disclosure [Abstract] | ||
Deferred compensation | $ 25.5 | $ 31 |
Warranty reserve | 26.6 | 25.7 |
Other liabilities | 59 | 59.9 |
Total other liabilities | $ 111.1 | $ 116.6 |
Share-based compensation - Shar
Share-based compensation - Share-based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Income tax benefit | $ (3.6) | $ (4.2) | $ (4.1) |
Selling, general and administrative expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 14.5 | $ 16.9 | $ 16.5 |
Share-based compensation - Narr
Share-based compensation - Narrative (Details) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021USD ($)share_option_savings_planshares | Feb. 01, 2020 | Feb. 02, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common Shares with no vesting requirements awarded to senior management | $ | $ 1.3 | ||
Number of share option savings plans | share_option_savings_plan | 3 | ||
Omnibus Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance period | 2 years | 3 years | 3 years |
Shares available for grant (in shares) | 6,075,000 | ||
Employee Share Savings Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Discount from market price | 5.00% | ||
Number of allocated shares (in shares) | 1,250,000 | ||
Sharesave Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 36 months | ||
Discount from market price | 15.00% | ||
Number of allocated shares (in shares) | 1,000,000 | ||
Minimum | Sharesave Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 36 months | ||
Maximum | Sharesave Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 42 months | ||
Restricted Stock | Omnibus Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Stock Options | Omnibus Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award requisite service period | 10 years | ||
Time-Based Restricted Stock Units | Minimum | Omnibus Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 1 year | ||
Time-Based Restricted Stock Units | Maximum | Omnibus Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years |
Share-based compensation - Unre
Share-based compensation - Unrecognized Compensation Costs related to Awards (Details) $ in Millions | 12 Months Ended |
Jan. 30, 2021USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 26.7 |
Omnibus Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 26.6 |
Weighted average period | 2 years 2 months 12 days |
Sharesave Plans | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 0.1 |
Weighted average period | 8 months 12 days |
Share-based compensation - Sign
Share-based compensation - Significant Assumptions used to Estimate Fair Value of Awards under Omnibus Plan (Details) - Omnibus Plan - $ / shares | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value per share of awards granted (usd per share) | $ 0 | ||
Restricted Stock, Restricted Stock Units and Common Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share price (usd per share) | $ 11.10 | $ 20.76 | $ 41.36 |
Expected term | 2 years 10 months 24 days | 2 years 9 months 18 days | 2 years 9 months 18 days |
Dividend yield | 5.50% | 7.50% | 3.60% |
Weighted average grant date fair value per share of awards granted (usd per share) | $ 9.37 | $ 18.14 | $ 38.57 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share price (usd per share) | 22.17 | 40.09 | |
Exercise price (usd per share) | $ 25.18 | $ 39.72 | |
Risk free interest rate | 2.40% | 2.90% | |
Expected term | 6 years | 6 years 6 months | |
Expected volatility | 42.70% | 37.60% | |
Dividend yield | 6.70% | 3.70% | |
Weighted average grant date fair value per share of awards granted (usd per share) | $ 4.27 | $ 11.21 |
Share-based compensation - Summ
Share-based compensation - Summary of Activity of Awards Granted under Omnibus Plan (Details) - Omnibus Plan - Restricted Stock, Restricted Stock Units and Common Shares - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |
Jan. 30, 2021 | Feb. 01, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Beginning Balance (shares) | 2.8 | |
Granted (shares) | 3.3 | |
Vested (shares) | (0.4) | |
Lapsed or forfeited (shares) | (0.9) | |
Ending Balance (shares) | 4.8 | 2.8 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Beginning Balance (usd per share) | $ 31.04 | |
Granted (usd per share) | 9.62 | |
Vested (usd per share) | 30.25 | |
Lapsed or forfeited (usd per share) | 34.20 | |
Ending Balance (usd per share) | $ 15.24 | $ 31.04 |
Weighted average remaining contractual life | 1 year 9 months 18 days | 1 year 6 months |
Intrinsic value | $ 192.3 | $ 66.9 |
Share-based compensation - Su_2
Share-based compensation - Summary of Activity of Stock Options Granted under Omnibus Plan (Details) - Omnibus Plan - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |
Jan. 30, 2021 | Feb. 01, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Beginning Balance (shares) | 0.7 | |
Granted (shares) | 0 | |
Vested (shares) | 0 | |
Lapsed or forfeited (shares) | (0.2) | |
Ending Balance (shares) | 0.5 | 0.7 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Beginning Balance (usd per share) | $ 39.13 | |
Granted (usd per share) | 0 | |
Vested (usd per share) | 0 | |
Lapsed or forfeited (usd per share) | 39.61 | |
Ending Balance (usd per share) | $ 38.98 | $ 39.13 |
Weighted average remaining contractual life | 7 years 3 months 18 days | 8 years 3 months 18 days |
Intrinsic value | $ 0.8 | $ 0 |
Share-based compensation - Addi
Share-based compensation - Additional Information about Awards Granted under Omnibus Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Omnibus Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total intrinsic value of awards vested | $ 5 | $ 3.5 | $ 6.8 |
Share-based compensation - Si_2
Share-based compensation - Significant Assumptions used to Estimate Fair Value of Awards under Share Saving Plan (Details) - Sharesave Plans | 12 Months Ended |
Feb. 02, 2019$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share price (usd per share) | $ 58.50 |
Exercise price (usd per share) | $ 57.97 |
Risk free interest rate | 3.00% |
Expected term | 3 years 8 months 12 days |
Expected volatility | 44.40% |
Dividend yield | 2.60% |
Weighted average grant date fair value per share of awards granted (usd per share) | $ 18.07 |
Share-based compensation - Su_3
Share-based compensation - Summary of Activity of Awards Granted under Share Saving Plan (Details) - Sharesave Plans - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |
Jan. 30, 2021 | Feb. 01, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Beginning Balance (shares) | 0.1 | |
Granted (shares) | 0 | |
Exercised (shares) | 0 | |
Lapsed or forfeited (shares) | 0 | |
Ending Balance (shares) | 0.1 | 0.1 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Beginning Balance (usd per share) | $ 54.78 | |
Granted (usd per share) | 0 | |
Exercised (usd per share) | 0 | |
Lapsed or forfeited (usd per share) | 0 | |
Ending Balance (usd per share) | $ 51.30 | $ 54.78 |
Weighted average remaining contractual life | 9 months 18 days | 1 year 1 month 6 days |
Intrinsic value | $ 0 | $ 0 |
Shares Exercisable (shares) | 0 | 0 |
Weighted Average Exercise Price, Shares Exercisable (usd per share) | $ 0 | $ 0 |
Intrinsic Value, Shares Exercisable | $ 0 | $ 0 |
Share-based compensation - Ad_2
Share-based compensation - Additional Information about Awards Granted under Share Saving Plan (Details) - Sharesave Plans $ / shares in Units, $ in Millions | 12 Months Ended |
Feb. 02, 2019USD ($)$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average grant date fair value per share of awards granted (usd per share) | $ / shares | $ 18.07 |
Total intrinsic value of options exercised | $ 0 |
Cash received from share options exercised | $ 0 |
Commitments and contingencies -
Commitments and contingencies - Narrative (Details) | Mar. 16, 2020USD ($) | Jan. 15, 2018plaintiff | Jan. 14, 2018plaintiff | Aug. 01, 2016employee | Aug. 31, 2016lawsuit | Aug. 01, 2020USD ($) | Feb. 01, 2020USD ($) | Jan. 30, 2021USD ($)propertyemployeeleasesettlement | Feb. 01, 2020USD ($) | Feb. 02, 2019USD ($)lawsuit |
Loss Contingencies [Line Items] | ||||||||||
Number of leases assigned | lease | 17 | |||||||||
Number of properties subleased | property | 5 | |||||||||
Capital commitments related to expansion and renovation of stores | $ 22,300,000 | |||||||||
Loss related to litigation settlement | $ 7,500,000 | $ 33,200,000 | $ 0 | |||||||
Consumer Financial Protection Bureau | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, damages paid, value | 10,000,000 | |||||||||
New York Attorney General | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, damages paid, value | $ 1,000,000 | |||||||||
Environmental Protection Agency Collective Action | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Number of plaintiffs | 254 | 70,000 | 10,314 | 9,124 | ||||||
S.D.N.Y. Cases | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, new claims filed, number | lawsuit | 2 | 4 | ||||||||
Litigation settlement, amount awarded to other party | $ 240,000,000 | |||||||||
Payments for legal settlements | $ 35,000,000 | |||||||||
Shareholder Actions | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss related to litigation settlement | $ 7,500,000 | |||||||||
Number of anticipated settlements | settlement | 4 | |||||||||
Other Operating Income (Expense) | S.D.N.Y. Cases | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss related to litigation settlement | $ 33,200,000 | |||||||||
Litigation administration costs | 600,000 | |||||||||
Insurance recoveries | $ 207,400,000 |