Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
3-May-14 | 30-May-14 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 3-May-14 | ' |
Document Fiscal Year Focus | '2015 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Trading Symbol | 'SIG | ' |
Entity Registrant Name | 'SIGNET JEWELERS LTD | ' |
Entity Central Index Key | '0000832988 | ' |
Current Fiscal Year End Date | '--01-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 80,203,014 |
Condensed_Consolidated_Income_
Condensed Consolidated Income Statements (USD $) | 3 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | 3-May-14 | Feb. 01, 2014 | 4-May-13 |
Sales | $1,056.10 | ' | $993.60 |
Cost of sales | -648.9 | ' | -610.8 |
Gross margin | 407.2 | ' | 382.8 |
Selling, general and administrative expenses | -310.5 | ' | -287 |
Other operating income, net | 54 | ' | 47 |
Operating income | 150.7 | ' | 142.8 |
Interest expense, net | -1.8 | ' | -0.9 |
(Loss) income before income taxes | 148.9 | ' | 141.9 |
Income taxes | -52.3 | ' | -50.1 |
Net income | $96.60 | ' | $91.80 |
Earnings per share: basic | $1.21 | ' | $1.14 |
Earnings per share: diluted | $1.20 | ' | $1.13 |
Weighted average common shares outstanding: basic | 79.9 | ' | 80.8 |
Weighted average common shares outstanding: diluted | 80.3 | ' | 81.3 |
Dividends declared per share | $0.18 | $0.15 | $0.15 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements Of Comprehensive Income (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | 3-May-14 | 4-May-13 |
Other comprehensive income (loss), pre tax amount: | ' | ' |
Foreign currency translation adjustments, pre tax amount | $9.60 | ($1.80) |
Cash flow hedges, pre tax amount: | ' | ' |
Unrealized gain (loss), pre tax amount | 0.7 | -17.5 |
Reclassification adjustment for losses (gains) to net income, pre tax amount | 7.4 | -1 |
Pension plan, pre tax amount: | ' | ' |
Reclassification adjustment to net income for amortization of actuarial loss, pre tax amount | 0.5 | 0.6 |
Reclassification adjustment to net income for amortization of prior service credits, pre tax amount | -0.4 | -0.4 |
Total other comprehensive income (loss), pre tax amount | 17.8 | -20.1 |
Other comprehensive income (loss), tax (expense) benefit: | ' | ' |
Foreign currency translation adjustments, tax (expense) benefit | ' | ' |
Cash flow hedges,tax (expense) benefit: | ' | ' |
Unrealized gain (loss), tax (expense) benefit | -0.4 | 6.1 |
Reclassification adjustment for losses (gains) to net income, tax (expense) benefit | -2.7 | 0.4 |
Pension plan,tax (expense) benefit: | ' | ' |
Reclassification adjustment to net income for amortization of actuarial loss, tax (expense) benefit | -0.1 | -0.1 |
Reclassification adjustment to net income for amortization of prior service credits, tax (expense) benefit | 0.1 | ' |
Total other comprehensive income (loss), tax (expense) benefit | -3.1 | 6.4 |
Net income | 96.6 | 91.8 |
After-tax amount, Other comprehensive income (loss): | ' | ' |
After-tax amount, Foreign currency translation adjustments | 9.6 | -1.8 |
After-tax amount, Cash flow hedges: | ' | ' |
After-tax amount, Unrealized gain (loss) | 0.3 | -11.4 |
After-tax amount, Reclassification adjustment for losses (gains) to net income | 4.7 | -0.6 |
After-tax amount, Pension plan: | ' | ' |
After-tax amount, Reclassification adjustment to net income for amortization of actuarial loss | 0.4 | 0.5 |
After-tax amount, Reclassification adjustment to net income for amortization of prior service credits | -0.3 | -0.4 |
After-tax amount, Total other comprehensive income (loss) | 14.7 | -13.7 |
Total comprehensive income | $111.30 | $78.10 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | 3-May-14 | Feb. 01, 2014 | 4-May-13 |
In Millions, unless otherwise specified | |||
Current assets: | ' | ' | ' |
Cash and cash equivalents | $249.10 | $247.60 | $263.70 |
Accounts receivable, net | 1,308.20 | 1,374 | 1,157.50 |
Other receivables | 47.1 | 51.5 | 40.2 |
Other current assets | 91 | 87 | 81.8 |
Deferred tax assets | 2.7 | 3 | 2.3 |
Income taxes | 10.7 | 6.5 | 10.1 |
Inventories | 1,523.90 | 1,488 | 1,426.40 |
Total current assets | 3,232.70 | 3,257.60 | 2,982 |
Non-current assets: | ' | ' | ' |
Property, plant and equipment, net of accumulated depreciation of $816.3, $788.1 and $737.5, respectively | 494 | 487.6 | 429.9 |
Other assets | 120.3 | 114 | 107.2 |
Deferred tax assets | 114.8 | 113.7 | 124.9 |
Retirement benefit asset | 59.8 | 56.3 | 50.3 |
Total assets | 4,021.60 | 4,029.20 | 3,694.30 |
Current liabilities: | ' | ' | ' |
Loans and overdrafts | 8.8 | 19.3 | 5.7 |
Accounts payable | 163.1 | 162.9 | 176.8 |
Accrued expenses and other current liabilities | 293.8 | 328.5 | 269.4 |
Deferred revenue | 174.4 | 173 | 157.6 |
Deferred tax liabilities | 123.9 | 113.1 | 145.6 |
Income taxes | 32.2 | 103.9 | 64.5 |
Total current liabilities | 796.2 | 900.7 | 819.6 |
Non-current liabilities: | ' | ' | ' |
Deferred tax liabilities | 2.7 | ' | 1 |
Other liabilities | 121.6 | 121.7 | 113.3 |
Deferred revenue | 457.3 | 443.7 | 415.9 |
Total liabilities | 1,377.80 | 1,466.10 | 1,349.80 |
Commitments and contingencies | ' | ' | ' |
Shareholders' equity: | ' | ' | ' |
Common shares of $0.18 par value: authorized 500 shares, 80.2 shares outstanding (February 1, 2014: 80.2 shares outstanding; May 3, 2014: 80.9 shares outstanding) | 15.7 | 15.7 | 15.7 |
Additional paid-in capital | 258.8 | 258.8 | 242 |
Other reserves | 235.2 | 235.2 | 235.2 |
Treasury shares at cost: 7.0 shares (February 1, 2014: 7.0 shares; May 3, 2014: 6.3 shares) | -362.3 | -346.2 | -297.7 |
Retained earnings | 2,660.20 | 2,578.10 | 2,338.70 |
Accumulated other comprehensive loss | -163.8 | -178.5 | -189.4 |
Total shareholders' equity | 2,643.80 | 2,563.10 | 2,344.50 |
Total liabilities and shareholders' equity | $4,021.60 | $4,029.20 | $3,694.30 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | 3-May-14 | Feb. 01, 2014 | 4-May-13 |
In Millions, except Per Share data, unless otherwise specified | |||
Property, plant and equipment, accumulated depreciation | $816.30 | $788.10 | $737.50 |
Common shares, par value | $0.18 | $0.18 | $0.18 |
Common shares, authorized | 500 | 500 | 500 |
Common shares, outstanding | 80.2 | 80.2 | 80.9 |
Treasury shares, shares | 7 | 7 | 6.3 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements Of Cash Flows (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | 3-May-14 | 4-May-13 |
Cash flows from operating activities | ' | ' |
Net income | $96.60 | $91.80 |
Adjustments to reconcile net income to cash provided by operating activities: | ' | ' |
Depreciation and amortization of property, plant and equipment | 28 | 25.6 |
Pension benefit | -0.6 | -0.1 |
Share-based compensation | 3.2 | 3 |
Deferred taxation | 9.4 | 1.9 |
Excess tax benefit from exercise of share awards | -7.7 | ' |
Facility amendment fee amortization and charges | 1 | 0.1 |
Other non-cash movements | -0.6 | -0.2 |
Changes in operating assets and liabilities: | ' | ' |
Decrease in accounts receivable | 66.2 | 47.6 |
Increase in other receivables and other assets | -1.7 | -5.5 |
Decrease in other current assets | 0.5 | 4.5 |
Increase in inventories | -19.9 | -54.7 |
(Decrease) increase in accounts payable | -4.2 | 18.3 |
Decrease in accrued expenses and other liabilities | -42.9 | -51.3 |
Increase in deferred revenue | 14.9 | 8 |
Decrease in income taxes payable | -68 | -42.4 |
Pension plan contributions | -1.1 | -1.8 |
Effect of exchange rate changes on currency swaps | 0.4 | 0.3 |
Net cash (used in) provided by operating activities | 73.5 | 45.1 |
Investing activities | ' | ' |
Purchase of property, plant and equipment | -28.1 | -23.2 |
Net cash used in investing activities | -28.1 | -23.2 |
Financing activities | ' | ' |
Dividends paid | -12 | -9.8 |
Proceeds from issuance of common shares | 1 | 5 |
Excess tax benefit from exercise of share awards | 7.7 | ' |
Repurchase of common shares | -11.4 | -50.1 |
Net settlement of equity based awards | -15.3 | -9.1 |
Payment of debt issuance costs | -3 | ' |
(Repayment of) proceeds from short-term borrowings | -10.5 | 5.7 |
Net cash provided by (used in) financing activities | -43.5 | -58.3 |
Cash and cash equivalents at beginning of period | 247.6 | 301 |
Increase (decrease) in cash and cash equivalents | 1.9 | -36.4 |
Effect of exchange rate changes on cash and cash equivalents | -0.4 | -0.9 |
Cash and cash equivalents at end of period | $249.10 | $263.70 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statement Of Shareholders' Equity (USD $) | Total | Common shares at par value | Additional paid-in capital | Other reserves | Treasury shares | Retained earnings | Accumulated other comprehensive loss |
In Millions | |||||||
Balance at Feb. 01, 2014 | $2,563.10 | $15.70 | $258.80 | $235.20 | ($346.20) | $2,578.10 | ($178.50) |
Net income | 96.6 | ' | ' | ' | ' | 96.6 | ' |
Other comprehensive income (loss) | 14.7 | ' | ' | ' | ' | ' | 14.7 |
Dividends | -14.4 | ' | ' | ' | ' | -14.4 | ' |
Repurchase of common shares | -12.9 | ' | ' | ' | -12.9 | ' | ' |
Net settlement of equity based awards | -7.6 | ' | -3.1 | ' | -4.4 | -0.1 | ' |
Share options exercised | 1.1 | ' | -0.1 | ' | 1.2 | ' | ' |
Share-based compensation expense | 3.2 | ' | 3.2 | ' | ' | ' | ' |
Balance at May. 03, 2014 | $2,643.80 | $15.70 | $258.80 | $235.20 | ($362.30) | $2,660.20 | ($163.80) |
Principal_accounting_policies_
Principal accounting policies and basis of preparation | 3 Months Ended |
3-May-14 | |
Principal accounting policies and basis of preparation | ' |
1. Principal accounting policies and basis of preparation | |
Basis of preparation | |
Signet Jewelers Limited (“Signet”, or the “Company”) is a holding company, incorporated in Bermuda, that operates through its subsidiaries. Signet is a leading retailer whose results are principally derived from one business segment – the retailing of jewelry, watches and associated services. The Company manages its business as two geographical reportable segments, being the United States of America (the “US”) and the United Kingdom (the “UK”). The US division operates retail stores under brands including Kay Jewelers, Jared The Galleria Of Jewelry and various regional brands. The UK division’s retail stores operate under brands including H.Samuel and Ernest Jones. | |
In the fourth quarter of Fiscal 2014, subsequent to the November 4, 2013 acquisition of a diamond polishing factory in Gaborone, Botswana, management established a separate operating segment (“Other”), which consists of all non-reportable segments including subsidiaries involved in the purchasing and conversion of rough diamonds to polished stones. | |
These condensed consolidated financial statements included herein have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) have been condensed or omitted from this report, as is permitted by such rules and regulations. In the opinion of management, the accompanying condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair presentation of the results for the interim periods. It is suggested that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and notes included in Signet’s Annual Report on Form 10-K for the year ended February 1, 2014. | |
Use of estimates | |
The preparation of these condensed consolidated financial statements, in conformity with US GAAP and SEC regulations for interim reporting, 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 condensed consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates and assumptions are primarily made in relation to the valuation of receivables, inventory and deferred revenue, fair value of derivatives, depreciation and asset impairment, the valuation of employee benefits, income taxes and contingencies. | |
Fiscal year | |
The Company’s fiscal year ends on the Saturday nearest to January 31st. Fiscal 2015 is the 52 week year ending January 31, 2015 and Fiscal 2014 is the 52 week year ending February 1, 2014. Within these condensed consolidated financial statements, the first quarter of the fiscal years 2015 and 2014 refers to the 13 weeks ended May 3, 2014 and May 4, 2013, respectively. | |
Seasonality | |
Signet’s sales are seasonal, with the first and second quarters each normally accounting for slightly more than 20% of annual sales, the third quarter a little under 20% and the fourth quarter for about 40% of sales, with December being by far the most important month of the year. Sales made in November and December are known as the “Holiday Season.” Due to sales leverage, Signet’s operating income is even more seasonal; about 45% to 50% of Signet’s operating income normally occurs in the fourth quarter, comprised of nearly all of the UK division’s operating income and about 40% to 50% of the US division’s operating income. | |
New accounting pronouncements adopted during the period | |
Presentation of Unrecognized Tax Benefit | |
In July 2013, the FASB issued ASU 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” The new guidance requires, unless certain conditions exist, an unrecognized tax benefit to be presented as a reduction to a deferred tax asset in the financial statements for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. Signet adopted this guidance effective for the first quarter ended May 3, 2014 and the implementation of this accounting pronouncement did not have an impact on Signet’s condensed consolidated financial statements. | |
Reclassification | |
Signet has reclassified the presentation of certain prior year information to conform to the current year presentation. |
Segment_information
Segment information | 3 Months Ended | ||||||||||||
3-May-14 | |||||||||||||
Segment information | ' | ||||||||||||
2. Segment information | |||||||||||||
Effective with the fourth quarter of Fiscal 2014, management changed the Company’s segment reporting in order to align with a change in its organizational and management reporting structure. Signet’s sales are derived from the retailing of jewelry, watches, other products and services. Signet has identified two geographical reportable segments, being the US and UK divisions. These segments represent channels of distribution that offer similar merchandise and services and have similar marketing and distribution strategies. Both divisions are managed by executive committees, which report to Signet’s Chief Executive Officer, who reports to the Board. Each divisional executive committee is responsible for operating decisions within parameters set by the Board. The performance of each segment is regularly evaluated based on sales and operating income. | |||||||||||||
In the fourth quarter of Fiscal 2014, subsequent to the November 4, 2013 acquisition of a diamond polishing factory in Gaborone, Botswana, management established the Other operating segment which consists of all non-reportable segments including subsidiaries involved in the purchasing and conversion of rough diamonds to polished stones. This segment was determined to be non-reportable and will be aggregated with corporate administrative functions for segment reporting. Prior year results have been revised to reflect this change. All inter-segment sales and transfers are eliminated. | |||||||||||||
13 weeks ended | |||||||||||||
(in millions) | May 3, | May 4, | |||||||||||
2014 | 2013 | ||||||||||||
Sales: | |||||||||||||
US | $ | 903.5 | $ | 857.2 | |||||||||
UK | 151.7 | 135 | |||||||||||
Other | 0.9 | 1.4 | |||||||||||
Total sales | $ | 1,056.10 | $ | 993.6 | |||||||||
Operating income (loss): | |||||||||||||
US | $ | 166.3 | $ | 152.8 | |||||||||
UK | — | (4.1 | ) | ||||||||||
Other | (15.6 | )(1) | (5.9 | ) | |||||||||
Total operating income | $ | 150.7 | $ | 142.8 | |||||||||
-1 | Fiscal 2015 balance includes $8.4 million of acquisition related costs, see Note 19 for additional information. | ||||||||||||
(in millions) | May 3, | February 1, | May 4, | ||||||||||
2014 | 2014 | 2013 | |||||||||||
Total assets: | |||||||||||||
US | $ | 3,263.80 | $3,311.00 | $ | 3,017.00 | ||||||||
UK | 493.2 | 484.6 | 441.7 | ||||||||||
Other | 264.6 | 233.6 | 235.6 | ||||||||||
Total assets | $ | 4,021.60 | $4,029.20 | $ | 3,694.30 | ||||||||
Foreign_currency_translation
Foreign currency translation | 3 Months Ended |
3-May-14 | |
Foreign currency translation | ' |
3. Foreign currency translation | |
Assets and liabilities denominated in the UK pound sterling are translated into the US dollar at the exchange rate prevailing at the balance sheet date. Equity accounts denominated in the UK pound sterling are translated into US dollars at historical exchange rates. Revenues and expenses denominated in the UK pound sterling are translated into the US dollar at the monthly average exchange rate for the period. Gains and losses resulting from foreign currency transactions are included within the consolidated income statement, whereas translation adjustments and gains and losses related to intercompany loans of a long-term investment nature are reported as an element of other comprehensive income (loss) (“OCI”). In addition, as the majority of the sales and expenses related to the factory in Gaborone, Botswana are transacted in US dollars, there is no related foreign currency translation as the US dollar is the functional currency. |
Income_taxes
Income taxes | 3 Months Ended |
3-May-14 | |
Income taxes | ' |
4. Income taxes | |
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 and certain other foreign jurisdictions. Signet is subject to US federal and state examinations by tax authorities for tax years ending after November 1, 2008 and is subject to examination by the UK tax authority for tax years ending after January 31, 2012. | |
As of February 1, 2014, Signet had approximately $4.6 million of unrecognized tax benefits in respect of uncertain tax positions, all of which would favorably affect the effective income tax rate if resolved in Signet’s favor. These unrecognized tax benefits relate to financing arrangements and intra-group charges which are subject to different and changing interpretations of tax law. There has been no material change in the amount of unrecognized tax benefits in respect of uncertain tax positions during the 13 weeks ended May 3, 2014. | |
Signet recognizes accrued interest and, where appropriate, penalties related to unrecognized tax benefits within income tax expense. As of February 1, 2014, Signet had accrued interest of $0.3 million and there has been no material change in the amount of accrued interest as of May 3, 2014. | |
Over the next twelve months, management believes that it is reasonably possible that there could be a reduction of substantially all of the unrecognized tax benefits as of February 1, 2014, due to settlement of the uncertain tax positions with the tax authorities. |
Earnings_per_share
Earnings per share | 3 Months Ended | ||||||||
3-May-14 | |||||||||
Earnings per share | ' | ||||||||
5. Earnings per share | |||||||||
13 weeks ended | |||||||||
(in millions, except per share amounts) | May 3, | May 4, | |||||||
2014 | 2013 | ||||||||
Net income | $ | 96.6 | $ | 91.8 | |||||
Basic weighted average number of shares outstanding | 79.9 | 80.8 | |||||||
Dilutive effect of share awards | 0.4 | 0.5 | |||||||
Diluted weighted average number of shares outstanding | 80.3 | 81.3 | |||||||
Earnings per share – basic | $ | 1.21 | $ | 1.14 | |||||
Earnings per share – diluted | $ | 1.2 | $ | 1.13 | |||||
The basic weighted average number of shares excludes non-vested time-based restricted shares, shares held by the Employee Stock Ownership Trust and treasury shares. Such shares are not considered outstanding and do not qualify for dividends, except for time-based restricted shares for which dividends are earned and payable by the Company subject to full vesting. The effect of excluding these shares is to reduce the average number of shares in the 13 week period ended May 3, 2014 by 7,272,616 shares (13 week period ended May 4, 2013: 6,365,336 shares). The calculation of fully diluted earnings per share for the 13 week period ended May 3, 2014 does not exclude any non-vested time-based restricted shares (13 week period ended May 4, 2013: 105,771 shares excluded) on the basis that their effect on earnings per share was anti-dilutive. |
Shareholders_equity
Shareholders' equity | 3 Months Ended | ||||||||||||||||||||||||||||
3-May-14 | |||||||||||||||||||||||||||||
Shareholders' equity | ' | ||||||||||||||||||||||||||||
6. Shareholders’ equity | |||||||||||||||||||||||||||||
Share repurchase | |||||||||||||||||||||||||||||
13 weeks ended May 3, 2014 | 13 weeks ended May 4, 2013 | ||||||||||||||||||||||||||||
Amount | Shares | Amount | Average | Shares | Amount | Average | |||||||||||||||||||||||
authorized | repurchased | repurchased | repurchase | repurchased | repurchased | repurchase | |||||||||||||||||||||||
price per | price per | ||||||||||||||||||||||||||||
share | share | ||||||||||||||||||||||||||||
(in millions) | (in millions) | (in millions) | |||||||||||||||||||||||||||
2013 Program(1) | $ | 350 | 126,468 | $ | 12.9 | (3) | $ | 102.1 | na | na | na | ||||||||||||||||||
2011 Program(2) | 350 | na | na | na | 749,245 | $ | 50.1 | $ | 66.92 | ||||||||||||||||||||
Total | 126,468 | $ | 12.9 | $ | 102.1 | 749,245 | $ | 50.1 | $ | 66.92 | |||||||||||||||||||
-1 | In June 2013, the Board authorized the repurchase of up to $350 million of Signet’s common shares (the “2013 Program”). The 2013 Program may be suspended or discontinued at any time without notice. The 2013 Program had $282.5 million remaining as of May 3, 2014. | ||||||||||||||||||||||||||||
-2 | In October 2011, the Board authorized the repurchase of up to $300 million of Signet’s common shares (the “2011 Program”), which authorization was subsequently increased to $350 million. The 2011 Program was completed as of May 4, 2013. | ||||||||||||||||||||||||||||
-3 | As of May 3, 2014, $11.4 million has been paid to repurchase common shares and $1.5 million has been recorded in accrued expenses and other current liabilities in the consolidated balance sheets reflecting shares repurchased but not yet settled and paid for by the end of the first quarter. | ||||||||||||||||||||||||||||
na | Not applicable. | ||||||||||||||||||||||||||||
Dividend | |||||||||||||||||||||||||||||
Fiscal 2015 | Fiscal 2014 | ||||||||||||||||||||||||||||
Cash dividend | Total | Cash dividend | Total | ||||||||||||||||||||||||||
per share | dividends | per share | dividends | ||||||||||||||||||||||||||
(in millions) | (in millions) | ||||||||||||||||||||||||||||
First quarter(1) | $ | 0.18 | $ | 14.4 | (2) | $ | 0.15 | $ | 12.1 | ||||||||||||||||||||
-1 | Signet’s dividend policy results in the dividend payment date being a quarter in arrears from the declaration date. As a result, the fourth quarter Fiscal 2014 $0.15 per share cash dividend was paid on February 27, 2014 in the aggregate amount of $12.0 million. | ||||||||||||||||||||||||||||
-2 | As of May 3, 2014, $14.4 million has been recorded in accrued expenses and other current liabilities in the consolidated balance sheets reflecting the cash dividend declared for the first quarter of Fiscal 2015, which has a record date of May 2, 2014 and a payment date of May 28, 2014. |
Accumulated_other_comprehensiv
Accumulated other comprehensive (loss) income | 3 Months Ended | ||||||||||||||||||||
3-May-14 | |||||||||||||||||||||
Accumulated other comprehensive (loss) income | ' | ||||||||||||||||||||
7. Accumulated other comprehensive (loss) income | |||||||||||||||||||||
Pension plan | |||||||||||||||||||||
(in millions) | Foreign | Gains | Actuarial | Prior | Accumulated | ||||||||||||||||
currency | (losses) on | (losses) | service | other | |||||||||||||||||
translation | cash flow | gains | credit | comprehensive | |||||||||||||||||
hedges | (cost) | (loss) income | |||||||||||||||||||
Balance at February 1, 2014 | $ | (137.0 | ) | $ | (14.3 | ) | $ | (42.5 | ) | $ | 15.3 | $ | (178.5 | ) | |||||||
OCI before reclassifications | 9.6 | 0.3 | — | — | 9.9 | ||||||||||||||||
Amounts reclassified from accumulated OCI | — | 4.7 | 0.4 | (0.3 | ) | 4.8 | |||||||||||||||
Net current-period OCI | 9.6 | 5 | 0.4 | (0.3 | ) | 14.7 | |||||||||||||||
Balance at May 3, 2014 | $ | (127.4 | ) | $ | (9.3 | ) | $ | (42.1 | ) | $ | 15 | $ | (163.8 | ) | |||||||
Reclassification activity by individual accumulated OCI component: | Amounts | Amounts | Income statement caption | ||||||||||||||||||
reclassified from | reclassified from | ||||||||||||||||||||
accumulated OCI | accumulated OCI | ||||||||||||||||||||
13 weeks ended | 13 weeks ended | ||||||||||||||||||||
May 3, 2014 | May 4, 2013 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||
(Gains) losses on cash flow hedges: | |||||||||||||||||||||
Foreign currency contracts | $ | — | $ | (0.2 | ) | Cost of sales (see Note 13) | |||||||||||||||
Commodity contracts | 7.4 | (0.8 | ) | Cost of sales (see Note 13) | |||||||||||||||||
Total before income tax | 7.4 | (1.0 | ) | ||||||||||||||||||
(2.7 | ) | 0.4 | Income taxes | ||||||||||||||||||
Net of tax | 4.7 | (0.6 | ) | ||||||||||||||||||
Defined benefit pension plan items: | |||||||||||||||||||||
Amortization of unrecognized net prior service credit | (0.4 | ) | (0.4 | ) | Selling, general and administrative expenses (1) | ||||||||||||||||
Amortization of unrecognized actuarial loss | 0.5 | 0.6 | Selling, general and administrative expenses (1) | ||||||||||||||||||
Total before income tax | 0.1 | 0.2 | |||||||||||||||||||
— | (0.1 | ) | Income taxes | ||||||||||||||||||
Net of tax | 0.1 | 0.1 | |||||||||||||||||||
Total reclassifications | $ | 4.8 | $ | (0.5 | ) | ||||||||||||||||
-1 | These items are included in the computation of net periodic pension benefit (cost). See Note 14 for additional information. |
Accounts_receivable_net
Accounts receivable, net | 3 Months Ended | ||||||||||||||||||||||||
3-May-14 | |||||||||||||||||||||||||
Accounts receivable, net | ' | ||||||||||||||||||||||||
8. Accounts receivable, net | |||||||||||||||||||||||||
Signet’s accounts receivable primarily consist of US customer in-house financing receivables. The accounts receivable portfolio consists of a population that is of similar characteristics and is evaluated collectively for impairment. The allowance is an estimate of the losses as of the balance sheet date, and is calculated using a proprietary model that analyzes factors such as delinquency rates and recovery rates. A 100% allowance is made for any amount that is more than 90 days aged on a recency basis and any amount associated with an account the owner of which has filed for bankruptcy, as well as an allowance for those amounts 90 days aged and under based on historical loss information and payment performance. The calculation is reviewed by management to assess whether, based on economic events, additional analyses are required to appropriately estimate losses inherent in the portfolio. | |||||||||||||||||||||||||
(in millions) | May 3, | February 1, | May 4, | ||||||||||||||||||||||
2014 | 2014 | 2013 | |||||||||||||||||||||||
Accounts receivable by portfolio segment, net: | |||||||||||||||||||||||||
US customer in-house finance receivables | $ | 1,294.80 | $ | 1,356.00 | $ | 1,145.90 | |||||||||||||||||||
Other accounts receivable | 13.4 | 18 | 11.6 | ||||||||||||||||||||||
Total accounts receivable, net | $ | 1,308.20 | $ | 1,374.00 | $ | 1,157.50 | |||||||||||||||||||
Signet grants credit to customers based on a variety of credit quality indicators, including consumer financial information and prior payment experience. On an ongoing basis, management monitors the credit exposure based on past due status and collection experience, as it has found a meaningful correlation between the past due status of customers and the risk of loss. | |||||||||||||||||||||||||
Other accounts receivable is comprised primarily of gross accounts receivable relating to the insurance loss replacement business in the UK division of $12.2 million (February 1, 2014 and May 4, 2013: $12.8 million and $10.6 million, respectively) with a corresponding valuation allowance of $0.3 million (February 1, 2014 and May 4, 2013: $0.3 million and $0.4 million, respectively). | |||||||||||||||||||||||||
Allowance for credit losses on US customer in-house finance receivables: | |||||||||||||||||||||||||
(in millions) | 13 weeks | 52 weeks | 13 weeks | ||||||||||||||||||||||
ended | ended | ended | |||||||||||||||||||||||
May 3, | February 1, | May 4, | |||||||||||||||||||||||
2014 | 2014 | 2013 | |||||||||||||||||||||||
Beginning balance | $ | (97.8 | ) | $ | (87.7 | ) | $ | (87.7 | ) | ||||||||||||||||
Charge-offs | 32.3 | 128.2 | 29.4 | ||||||||||||||||||||||
Recoveries | 8.5 | 26 | 7.4 | ||||||||||||||||||||||
Provision | (30.8 | ) | (164.3 | ) | (28.7 | ) | |||||||||||||||||||
Ending balance | $ | (87.8 | ) | $ | (97.8 | ) | $ | (79.6 | ) | ||||||||||||||||
Ending receivable balance evaluated for impairment | 1,382.60 | 1,453.80 | 1,225.50 | ||||||||||||||||||||||
US customer in-house finance receivables, net | $ | 1,294.80 | $ | 1,356.00 | $ | 1,145.90 | |||||||||||||||||||
Net bad debt expense is defined as the provision expense less recoveries. | |||||||||||||||||||||||||
Credit quality indicator and age analysis of past due US customer in-house finance receivables: | |||||||||||||||||||||||||
May 3, | February 1, | May 4, | |||||||||||||||||||||||
2014 | 2014 | 2013 | |||||||||||||||||||||||
(in millions) | Gross | Valuation | Gross | Valuation | Gross | Valuation | |||||||||||||||||||
allowance | allowance | allowance | |||||||||||||||||||||||
Performing: | |||||||||||||||||||||||||
Current, aged 0-30 days | $ | 1,130.80 | $ | (34.4 | ) | $ | 1,170.40 | $ | (36.3 | ) | $ | 999.1 | $ | (30.5 | ) | ||||||||||
Past due, aged 31-90 days | 205.6 | (7.2 | ) | 229.9 | (8.0 | ) | 183.9 | (6.6 | ) | ||||||||||||||||
Non Performing: | |||||||||||||||||||||||||
Past due, aged more than 90 days | 46.2 | (46.2 | ) | 53.5 | (53.5 | ) | 42.5 | (42.5 | ) | ||||||||||||||||
$ | 1,382.60 | $ | (87.8 | ) | $ | 1,453.80 | $ | (97.8 | ) | $ | 1,225.50 | $ | (79.6 | ) | |||||||||||
May 3, | February 1, | May 4, | |||||||||||||||||||||||
2014 | 2014 | 2013 | |||||||||||||||||||||||
(as a percentage of the ending receivable balance) | Gross | Valuation | Gross | Valuation | Gross | Valuation | |||||||||||||||||||
allowance | allowance | allowance | |||||||||||||||||||||||
Performing | 96.7 | % | 3.1 | % | 96.3 | % | 3.2 | % | 96.5 | % | 3.2 | % | |||||||||||||
Non Performing | 3.3 | % | 100 | % | 3.7 | % | 100 | % | 3.5 | % | 100 | % | |||||||||||||
100 | % | 6.4 | % | 100 | % | 6.7 | % | 100 | % | 6.5 | % | ||||||||||||||
Inventories
Inventories | 3 Months Ended | ||||||||||||
3-May-14 | |||||||||||||
Inventories | ' | ||||||||||||
9. Inventories | |||||||||||||
Inventories | |||||||||||||
(in millions) | May 3, | February 1, | May 4, | ||||||||||
2014 | 2014 | 2013 | |||||||||||
Raw materials | $ | 38 | $ | 41.8 | $ | 36.4 | |||||||
Finished goods | 1,485.90 | 1,446.20 | 1,390.00 | ||||||||||
Total inventories | $ | 1,523.90 | $ | 1,488.00 | $ | 1,426.40 | |||||||
Other_assets
Other assets | 3 Months Ended | ||||||||||||||||
3-May-14 | |||||||||||||||||
Other assets | ' | ||||||||||||||||
10. Other assets | |||||||||||||||||
(in millions) | May 3, | February 1, | May 4, | ||||||||||||||
2014 | 2014 | 2013 | |||||||||||||||
Deferred extended service plan costs | $ | 63.6 | $ | 61.9 | $ | 58.6 | |||||||||||
Goodwill | 26.8 | 26.8 | 24.6 | ||||||||||||||
Other assets | 29.9 | 25.3 | 24 | ||||||||||||||
Total other assets | $ | 120.3 | $ | 114 | $ | 107.2 | |||||||||||
In addition, other current assets include deferred direct costs in relation to the sale of extended service plans (“ESP”) of $22.5 million as of May 3, 2014 (February 1, 2014 and May 4, 2013: $21.9 million and $20.8 million, respectively). | |||||||||||||||||
Goodwill | |||||||||||||||||
The following table summarizes the Company’s goodwill by reporting unit: | |||||||||||||||||
(in millions) | US | UK | Other | Total | |||||||||||||
Balance at February 2, 2013 | $ | 24.6 | $ | — | $ | — | $ | 24.6 | |||||||||
Acquisitions(1) | (1.4 | ) | — | 3.6 | 2.2 | ||||||||||||
Balance at February 1, 2014 | 23.2 | — | 3.6 | 26.8 | |||||||||||||
Acquisition | — | — | — | — | |||||||||||||
Balance at May 3, 2014 | $ | 23.2 | $ | — | $ | 3.6 | $ | 26.8 | |||||||||
-1 | See Note 18 for additional discussion of the goodwill recorded by the Company during Fiscal 2014. | ||||||||||||||||
The Company’s reporting units align with the operating segments disclosed in Note 2. There have been no goodwill impairment losses recorded during the fiscal periods presented in the condensed consolidated income statements. If future economic conditions are different than those projected by management, future impairment charges may be required. |
Deferred_revenue
Deferred revenue | 3 Months Ended | ||||||||||||
3-May-14 | |||||||||||||
Deferred revenue | ' | ||||||||||||
11. Deferred revenue | |||||||||||||
Deferred revenue is comprised primarily of ESP and voucher promotions as follows: | |||||||||||||
(in millions) | May 3, | February 1, | May 4, | ||||||||||
2014 | 2014 | 2013 | |||||||||||
ESP deferred revenue | $ | 619.6 | $ | 601.2 | $ | 563.4 | |||||||
Voucher promotions and other | 12.1 | 15.5 | 10.1 | ||||||||||
Total deferred revenue | $ | 631.7 | $ | 616.7 | $ | 573.5 | |||||||
Disclosed as: | |||||||||||||
Current liabilities | $ | 174.4 | $ | 173 | $ | 157.6 | |||||||
Non-current liabilities | 457.3 | 443.7 | 415.9 | ||||||||||
Total deferred revenue | $ | 631.7 | $ | 616.7 | $ | 573.5 | |||||||
13 weeks ended | |||||||||||||
(in millions) | May 3, | May 4, | |||||||||||
2014 | 2013 | ||||||||||||
ESP deferred revenue, beginning of period: | $ | 601.2 | $ | 549.7 | |||||||||
Plans sold | 64.2 | 55.3 | |||||||||||
Revenue recognized | (45.8 | ) | (41.6 | ) | |||||||||
ESP deferred revenue, end of period | $ | 619.6 | $ | 563.4 | |||||||||
Warranty_reserve
Warranty reserve | 3 Months Ended | ||||||||||||
3-May-14 | |||||||||||||
Warranty reserve | ' | ||||||||||||
12. Warranty reserve | |||||||||||||
Warranty reserve for diamond and gemstone guarantee, included in accrued expenses and other current liabilities, and other non-current liabilities, is as follows: | |||||||||||||
(in millions) | 13 weeks | 52 weeks | 13 weeks | ||||||||||
ended | ended | ended | |||||||||||
May 3, | February 1, | May 4, | |||||||||||
2014 | 2014 | 2013 | |||||||||||
Warranty reserve, beginning of period: | $ | 19.1 | $ | 18.5 | $ | 18.5 | |||||||
Warranty expense | 1.7 | 7.4 | 1.6 | ||||||||||
Utilized | (1.4 | ) | (6.8 | ) | (1.5 | ) | |||||||
Warranty reserve, end of period | $ | 19.4 | $ | 19.1 | $ | 18.6 | |||||||
Disclosed as: | |||||||||||||
Current liabilities | $ | 6.7 | $ | 6.7 | $ | 6.8 | |||||||
Non-current liabilities | 12.7 | 12.4 | 11.8 | ||||||||||
Total warranty reserve | $ | 19.4 | $ | 19.1 | $ | 18.6 | |||||||
Financial_instruments_and_fair
Financial instruments and fair value | 3 Months Ended | ||||||||||||||||||||||||
3-May-14 | |||||||||||||||||||||||||
Financial instruments and fair value | ' | ||||||||||||||||||||||||
13. Financial instruments and fair value | |||||||||||||||||||||||||
Signet’s principal financial instruments are comprised of cash, cash deposits/investments and overdrafts, accounts receivable and payable, derivatives and a revolving credit facility. Signet does not enter into derivative transactions for trading purposes. Derivative transactions are used by Signet for risk management purposes to address risks inherent in Signet’s business operations and sources of finance. The main risks arising from Signet’s operations are market risk including foreign currency risk and commodity risk, liquidity risk and interest rate risk. Signet uses these financial instruments to manage and mitigate these risks under policies reviewed and approved by the Board. | |||||||||||||||||||||||||
Market risk | |||||||||||||||||||||||||
Signet generates revenues and incurs expenses in US dollars and pounds sterling. As a portion of Signet’s UK division purchases are denominated in US dollars, Signet enters into foreign currency forward exchange contracts, foreign currency option contracts and foreign currency swaps to manage this exposure to the US dollar. | |||||||||||||||||||||||||
Signet holds a fluctuating amount of pounds sterling cash reflecting the cash generative characteristics of the UK division. Signet’s objective is to minimize net foreign exchange exposure to the income statement on pounds sterling denominated items through managing this level of cash, pounds sterling denominated intercompany balances and US dollar to pounds sterling swaps. In order to manage the foreign exchange exposure and minimize the level of pounds sterling cash held by Signet, the pounds sterling denominated subsidiaries pay dividends regularly to their immediate holding companies and excess pounds sterling are sold in exchange for US dollars. | |||||||||||||||||||||||||
Signet’s policy is to minimize 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. In particular, Signet undertakes some hedging of its requirement for gold through the use of options, net zero-cost collar arrangements (a combination of call and put option contracts), forward contracts and commodity purchasing, while fluctuations in the cost of diamonds are not hedged. | |||||||||||||||||||||||||
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. Cash generated from operations and external financing are the main sources of funding supplementing Signet’s resources in meeting liquidity requirements. | |||||||||||||||||||||||||
The main external source of funding is a $400 million senior unsecured multi-currency five year revolving credit facility expiring May 2016, under which there were no borrowings as of May 3, 2014, February 1, 2014 or May 4, 2013. Subsequent to May 3, 2014, Signet executed its Zale acquisition financing as described below in Note 19, amending its credit facility, issuing senior unsecured notes and securitizing credit card receivables. | |||||||||||||||||||||||||
Interest rate risk | |||||||||||||||||||||||||
Signet may enter into various interest rate protection agreements in order to limit the impact of movements in interest rates on its cash or borrowings. There were no interest rate protection agreements outstanding at May 3, 2014, February 1, 2014 or May 4, 2013. | |||||||||||||||||||||||||
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, except for customer in-house financing receivables as disclosed in Note 8. 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. 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. | |||||||||||||||||||||||||
Derivatives | |||||||||||||||||||||||||
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 in order to limit the impact of movements in foreign exchange rates on forecasted foreign currency purchases. The total notional amount of these foreign currency contracts outstanding as of May 3, 2014 was $40.4 million (February 1, 2014 and May 4, 2013: $42.3 million and $43.7 million, respectively). These contracts have been designated as cash flow hedges and will be settled over the next 12 months (February 1, 2014 and May 4, 2013: 12 months and 14 months, respectively). | |||||||||||||||||||||||||
Forward foreign currency exchange contracts (undesignated) — Foreign currency contracts not designated as cash flow hedges are used to hedge currency flows through Signet’s bank accounts 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 May 3, 2014 was $39.7 million (February 1, 2014 and May 4, 2013: $22.1 million and $53.8 million, respectively). | |||||||||||||||||||||||||
Commodity forward purchase contracts and net zero-cost collar arrangements — These contracts are entered into in order to reduce Signet’s exposure to significant movements in the price of the underlying precious metal raw material. The total notional amount of these commodity derivative contracts outstanding as of May 3, 2014 was $49.6 million (February 1, 2014 and May 4, 2013: $63.0 million and $69.2 million, respectively). These contracts have been designated as cash flow hedges and will be settled over the next 10 months (February 1, 2014 and May 4, 2013: 12 months and 9 months, respectively). | |||||||||||||||||||||||||
The bank counterparties to the derivative contracts expose Signet to credit-related losses in the event of their nonperformance. However, to mitigate that risk, Signet only contracts with counterparties that meet certain minimum requirements under its counterparty risk assessment process. As of May 3, 2014, 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 condensed consolidated balance sheets: | |||||||||||||||||||||||||
Derivative assets | |||||||||||||||||||||||||
Fair value | |||||||||||||||||||||||||
(in millions) | Balance sheet location | May 3, | February 1, | May 4, | |||||||||||||||||||||
2014 | 2014 | 2013 | |||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||
Foreign currency contracts | Other current assets | $ | — | $ | — | $ | 1.1 | ||||||||||||||||||
Foreign currency contracts | Other assets | — | — | — | |||||||||||||||||||||
Commodity contracts | Other current assets | 1.4 | 0.8 | 3 | |||||||||||||||||||||
Commodity contracts | Other assets | — | — | — | |||||||||||||||||||||
$ | 1.4 | $ | 0.8 | $ | 4.1 | ||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||
Foreign currency contracts | Other current assets | — | 0.2 | — | |||||||||||||||||||||
Total derivative assets | $ | 1.4 | $ | 1 | $ | 4.1 | |||||||||||||||||||
Derivative liabilities | |||||||||||||||||||||||||
Fair value | |||||||||||||||||||||||||
(in millions) | Balance sheet location | May 3, | February 1, | May 4, | |||||||||||||||||||||
2014 | 2014 | 2013 | |||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||
Foreign currency contracts | Other current liabilities | $ | (2.6 | ) | $ | (2.1 | ) | $ | (0.1 | ) | |||||||||||||||
Foreign currency contracts | Other liabilities | — | — | — | |||||||||||||||||||||
Commodity contracts | Other current liabilities | (0.2 | ) | (0.8 | ) | (0.2 | ) | ||||||||||||||||||
Commodity contracts | Other liabilities | — | — | — | |||||||||||||||||||||
$ | (2.8 | ) | $ | (2.9 | ) | $ | (0.3 | ) | |||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||
Foreign currency contracts | Other current liabilities | $ | (0.2 | ) | $ | — | $ | (0.2 | ) | ||||||||||||||||
Total derivative liabilities | $ | (3.0 | ) | $ | (2.9 | ) | $ | (0.5 | ) | ||||||||||||||||
Derivatives designated as cash flow hedges | |||||||||||||||||||||||||
The following table summarizes the pre-tax gains (losses) recorded in accumulated OCI for derivatives designated in cash flow hedging relationships: | |||||||||||||||||||||||||
May 3, | February 1, | May 4, | |||||||||||||||||||||||
2014 | 2014 | 2013 | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Foreign currency contracts | $ | (3.6 | ) | $ | (2.3 | ) | $ | 1.6 | |||||||||||||||||
Commodity contracts | (9.4 | )(1) | (18.8 | )(1) | (19.3 | )(1) | |||||||||||||||||||
Total | $ | (13.0 | ) | $ | (21.1 | ) | $ | (17.7 | ) | ||||||||||||||||
-1 | As of May 3, 2014, losses include $11.1 million related to commodity contracts terminated prior to contract maturity that occurred in Fiscal 2014 (February 1, 2014 and May 4, 2013: $18.2 million and $22.0 million, respectively). | ||||||||||||||||||||||||
The following tables summarize the effect of derivative instruments designated as cash flow hedges in OCI and the consolidated income statements: | |||||||||||||||||||||||||
Foreign currency contracts | |||||||||||||||||||||||||
13 weeks ended | |||||||||||||||||||||||||
Income statement caption | May 3, | May 4, | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
(Losses) gains recorded in accumulated OCI, beginning of period | $ | (2.3 | ) | $ | 1.3 | ||||||||||||||||||||
Current period (losses) gains recognized in OCI | (1.3 | ) | 0.5 | ||||||||||||||||||||||
(Gains) losses reclassified from accumulated OCI to net income | Cost of sales | — | (0.2 | ) | |||||||||||||||||||||
(Losses) gains recorded in accumulated OCI, end of period | $ | (3.6 | ) | $ | 1.6 | ||||||||||||||||||||
Commodity contracts | |||||||||||||||||||||||||
13 weeks ended | |||||||||||||||||||||||||
Income statement caption | May 3, | May 4, | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
(Losses) gains recorded in accumulated OCI, beginning of period | $ | (18.8 | ) | $ | (0.5 | ) | |||||||||||||||||||
Current period gains (losses) recognized in OCI | 2 | (18.0 | ) | ||||||||||||||||||||||
Losses (gains) reclassified from accumulated OCI to net income | Cost of sales | 7.4 | (0.8 | ) | |||||||||||||||||||||
(Losses) gains recorded in accumulated OCI, end of period | $ | (9.4 | ) | $ | (19.3 | ) | |||||||||||||||||||
There was no material ineffectiveness related to the Company’s derivative instruments designated in cash flow hedging relationships during the 13 weeks ended May 3, 2014 and May 4, 2013, respectively. Based on current valuations, the Company expects approximately $11.9 million of net pre-tax derivative losses to be reclassified out of accumulated OCI into earnings within the next 12 months, of which $11.2 will be recognized in the remaining nine months of Fiscal 2015. | |||||||||||||||||||||||||
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 income statements: | |||||||||||||||||||||||||
Amount of gain (loss) | |||||||||||||||||||||||||
recognized in income | |||||||||||||||||||||||||
13 weeks ended | |||||||||||||||||||||||||
Income statement caption | May 3, | May 4, | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||
Foreign currency contracts | Other operating income, net | $ | (1.6 | ) | $ | (0.2 | ) | ||||||||||||||||||
Total | $ | (1.6 | ) | $ | (0.2 | ) | |||||||||||||||||||
Fair value | |||||||||||||||||||||||||
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: | |||||||||||||||||||||||||
May 3, 2014 | February 1, 2014 | May 4, 2013 | |||||||||||||||||||||||
(in millions) | Carrying | Significant other | Carrying | Significant other | Carrying | Significant other | |||||||||||||||||||
Value | observable | Value | observable | Value | observable | ||||||||||||||||||||
inputs | inputs | inputs | |||||||||||||||||||||||
(Level 2) | (Level 2) | (Level 2) | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Foreign currency contracts | $ | — | $ | — | $ | 0.2 | $ | 0.2 | $ | 1.1 | $ | 1.1 | |||||||||||||
Commodity contracts | 1.4 | 1.4 | 0.8 | 0.8 | 3 | 3 | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||
Foreign currency contracts | (2.8 | ) | (2.8 | ) | (2.1 | ) | (2.1 | ) | (0.3 | ) | (0.3 | ) | |||||||||||||
Commodity contracts | (0.2 | ) | (0.2 | ) | (0.8 | ) | (0.8 | ) | (0.2 | ) | (0.2 | ) | |||||||||||||
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 interest rate environment, foreign currency forward rates or commodity forward rates. These are held as assets and liabilities within other receivables and other payables, and all contracts have a maturity of less than 12 months. The carrying amounts of cash and cash equivalents, accounts receivable, other receivables, accounts payable and accrued liabilities approximate fair value because of the short-term maturity of these amounts. |
Pensions
Pensions | 3 Months Ended | ||||||||
3-May-14 | |||||||||
Pensions | ' | ||||||||
14. Pensions | |||||||||
Signet operates a defined benefit pension plan in the UK (the “UK Plan”). The components of net periodic pension benefit were as follows: | |||||||||
13 weeks ended | |||||||||
(in millions) | May 3, | May 4, | |||||||
2014 | 2013 | ||||||||
Components of net periodic pension benefit: | |||||||||
Service cost | $ | (0.6 | ) | $ | (0.6 | ) | |||
Interest cost | (2.5 | ) | (2.3 | ) | |||||
Expected return on UK Plan assets | 3.8 | 3.2 | |||||||
Amortization of unrecognized prior service credit | 0.4 | 0.4 | |||||||
Amortization of unrecognized actuarial loss | (0.5 | ) | (0.6 | ) | |||||
Net periodic pension benefit | $ | 0.6 | $ | 0.1 | |||||
In the 13 weeks ended May 3, 2014, Signet contributed $1.1 million to the UK Plan and expects to contribute a minimum aggregate of $4.2 million at current exchange rates to the UK Plan in Fiscal 2015. These contributions are in accordance with an agreed upon deficit recovery plan and based on the results of the actuarial valuation as of April 5, 2012. |
Commitments_and_contingencies
Commitments and contingencies | 3 Months Ended |
3-May-14 | |
Commitments and contingencies | ' |
15. Commitments and contingencies | |
Legal proceedings | |
As previously reported, in March 2008, a group of private plaintiffs (the “Claimants”) filed a class action lawsuit for an unspecified amount against Sterling Jewelers Inc. (“Sterling”), a subsidiary of Signet, in the U.S. 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. Discovery has been completed. The Claimants filed a motion for class certification and Sterling opposed the motion. A hearing on the class certification motion was held in late February 2014. The motion is now pending before the Arbitrator. | |
Also as previously reported, on September 23, 2008, the U.S. Equal Employment Opportunity Commission (“EEOC”) filed a lawsuit against Sterling in the U.S. District Court for the Western District of New York. The EEOC’s lawsuit alleges that Sterling engaged in intentional and disparate impact gender discrimination with respect to pay and promotions of female retail store employees from January 1, 2003 to the present. The EEOC asserts claims for unspecified monetary relief and non-monetary relief against the Company on behalf of a class of female employees subjected to these alleged practices. Non-expert fact discovery closed in mid-May 2013. In September 2013, Sterling made a motion for partial summary judgment on procedural grounds, which was referred to a Magistrate Judge. The Magistrate Judge heard oral arguments on the summary judgment motion in December 2013. On January 2, 2014, the Magistrate Judge issued his Report, Recommendation and Order, recommending that the Court grant Sterling’s motion for partial summary judgment and dismiss the EEOC’s claims in their entirety. The EEOC filed its objections to the Magistrate Judge’s ruling and Sterling filed its response thereto. The District Court Judge heard oral arguments on the EEOC’s objections to the Magistrate Judge’s ruling on March 7, 2014 and on March 11, 2014 entered an order dismissing the action with prejudice. On May 12, 2014 the EEOC filed its Notice of Appeal of the District Court Judge’s dismissal of the action to United States Court of Appeals for the Second Circuit. The appeal is proceeding. | |
Sterling denies the allegations of both parties and has been defending these cases vigorously. At this point, no outcome or amount of loss is able to be estimated. | |
In the ordinary course of business, Signet may be subject, from time to time, to various other proceedings, lawsuits, disputes or claims incidental to its business, which the Company believe are not significant to Signet’s consolidated financial position, results of operations or cash flows. |
Sharebased_compensation_expens
Share-based compensation expense | 3 Months Ended |
3-May-14 | |
Share-based compensation expense | ' |
16. Share-based compensation expense | |
Signet recorded share-based compensation expense of $3.2 million for the 13 weeks ended May 3, 2014 related to the Omnibus Plan and Share Saving Plans (13 weeks ended May 4, 2013: $3.0 million). |
Loans_overdrafts_and_longterm_
Loans, overdrafts and long-term debt | 3 Months Ended | ||||||||||||
3-May-14 | |||||||||||||
Loans, overdrafts and long-term debt | ' | ||||||||||||
17. Loans, overdrafts and long-term debt | |||||||||||||
(in millions) | May 3, | February 1, | May 4, | ||||||||||
2014 | 2014 | 2013 | |||||||||||
Current liabilities – loans and overdrafts | |||||||||||||
Revolving credit facility | $ | — | $ | — | $ | — | |||||||
Bank overdrafts | 8.8 | 19.3 | 5.7 | ||||||||||
Total loans and overdrafts | $ | 8.8 | $ | 19.3 | $ | 5.7 | |||||||
In May 2011, Signet entered into a $400 million senior unsecured multi-currency five year revolving credit facility agreement (the “Credit Facility”). The Credit Facility contains an expansion option that, with the consent of the lenders or the addition of new lenders, and subject to certain conditions, availability under the Credit Facility may be increased by an additional $200 million at the request of Signet. The Credit Facility has a five year term and matures in May 2016, at which time all amounts outstanding under the Credit Facility will be due and payable. The Credit Facility also contains various customary representations and warranties, financial reporting requirements and other affirmative and negative covenants. The Credit Facility requires that Signet maintain at all times a “Leverage Ratio” (as defined in the Credit Facility) to be no greater than 2.50 to 1.00 and a “Fixed Charge Coverage Ratio” (as defined in the Credit Facility) to be no less than 1.40 to 1.00, both determined as of the end of each fiscal quarter of Signet for the trailing twelve months. | |||||||||||||
At May 3, 2014, February 1, 2014 and May 4, 2013, there were no amounts outstanding under the Credit Facility, with no intra-period borrowings. Capitalized amendment fees for the Credit Facility were $2.1 million, with $1.4 million and $0.9 million of accumulated amortization as of May 3, 2014 and May 4, 2013, respectively. For the 13 weeks ended May 3, 2014, $0.2 million was charged to the condensed consolidated income statement (13 weeks ended May 4, 2013: $0.1 million). Signet had stand-by letters of credit of $8.7 million, $10.1 million and $9.5 million as of May 3, 2014, February 1, 2014 and May 4, 2013, respectively. | |||||||||||||
At May 3, 2014, February 1, 2014 and May 4, 2013, there were $8.8 million, $19.3 million and $5.7 million in overdrafts, which represents issued and outstanding checks where there are no bank balances with the right to offset. | |||||||||||||
On February 19, 2014, Signet entered into a definitive agreement to acquire Zale Corporation (“Zale”). In conjunction with the proposed acquisition, Signet entered into an $800 million 364-day unsecured bridge facility to finance the transaction. The bridge facility contains customary fees in addition to interest incurred on any borrowings drawn on the facility. Subsequent to May 3, 2014, Signet executed its Zale acquisition financing as described below in Note 19, replacing the bridge facility in addition to amending its Credit Facility, issuing senior unsecured notes and securitizing credit card receivables. No amounts were drawn on the bridge facility prior to replacement and fees of $4.2 million were incurred and capitalized. Of the $4.2 million fees incurred, $3.0 million was paid and $1.2 million was accrued as of May 3, 2014. Amortization related to these fees of $0.8 million were charged to the condensed consolidated income statement for the 13 weeks ended May 3, 2014. |
Acquisition
Acquisition | 3 Months Ended |
3-May-14 | |
Acquisition | ' |
18. Acquisition | |
On November 4, 2013, Signet acquired a diamond polishing factory in Gaborone, Botswana for $9.1 million. The acquisition expands the Company’s long-term diamond sourcing capabilities and provides resources for the Company to cut and polish stones. | |
The transaction was accounted for as a business combination during the fourth quarter of Fiscal 2014. The Company is in the process of finalizing the valuation of the net assets acquired, most notably the valuation of property, plant and equipment. The total consideration paid by the Company was funded through existing cash and allocated to the net assets acquired based on the preliminary fair values as follows: property, plant and equipment acquired of $5.5 million and goodwill of $3.6 million. None of the goodwill will be deductible for income tax purposes. The goodwill balance is recorded within other assets in the consolidated balance sheet. See Note 10. | |
The results of operations related to the acquired diamond polishing factory are reported within the Other operating segment of Signet’s consolidated results and included in Signet’s condensed consolidated financial statements commencing on the date of acquisition in the Other operating segment. |
Subsequent_events
Subsequent events | 3 Months Ended |
3-May-14 | |
Subsequent events | ' |
19. Subsequent events | |
Zale acquisition | |
On May 29, 2014, the Company completed its acquisition of Zale Corporation (“Zale”), pursuant to the Agreement and Plan of Merger dated as of February 19, 2014. As a result of the Company acquiring 100% of the outstanding shares of Zale, Zale became a wholly-owned consolidated subsidiary of Signet. Under the terms of the Agreement and Plan of Merger, Zale shareholders received $21 per share in cash for each outstanding share of common stock and the vesting, upon consummation of the acquisition, of certain outstanding Zale restricted stock units and Zale stock options, which converted into the right to receive the merger consideration. The cost of the transaction was $1.46 billion, including approximately $0.5 billion to extinguish Zale’s existing debt. The acquisition reflects our strategy to diversify our businesses and expand our international footprint. | |
In conjunction with the acquisition, the Company entered into a senior unsecured term loan facility of $400 million, and certain subsidiaries of the Company entered into an asset-backed securitization facility of $600 million, and completed the issuance and sale of registered senior unsecured notes of $400 million. The proceeds from these borrowings, together with cash on hand, were used to pay down Zale’s existing debt, finance the acquisition and to pay fees, costs and expenses related thereto. In conjunction with the senior unsecured term loan facility, the Company also amended and restated its existing $400 million revolving credit facility to, among other things, extend the maturity thereof until May 2019. | |
The Company will account for this acquisition under the acquisition method of accounting for business combinations. All of the assets and liabilities of Zale will be recorded at their respective fair values as of the acquisition date and the results of operations will be reported in the Company’s consolidated financial statements beginning as of the effective date of the acquisition. Any transaction costs will be expensed as incurred. Due to the limited time between the acquisition date and the filing of this Quarterly Report on Form 10-Q for the 13 week period ended May 3, 2014, the initial purchase accounting has not been completed. As such, it is not practicable for the Company to disclose: (i) the allocation of purchase price to assets acquired and liabilities assumed, and (ii) pro forma revenues and earnings of the combined company for the 13 week period ended May 3, 2014. This information will be included in our Quarterly Report on Form 10-Q for the 13 week and 26 week periods ended August 2, 2014 to be filed with the SEC. | |
During the 13 week period ended May 3, 2014, the Company expensed $8.4 million of transaction costs in connection with the Company’s acquisition of Zale, which are included in selling, general and administrative expenses in the condensed consolidated income statement. | |
Issuance of 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 4.700% senior unsecured notes due in 2024 (the “Notes”). The Notes were issued under an effective registration statement previously filed with the SEC. Interest on the notes is payable semi-annually on June 15 and December 15 of each year, commencing December 15, 2014. The 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 Notes were issued pursuant to a base indenture among the Company, Signet UK Finance, the Guarantors and Deutsche Bank Trust Company Americas as trustee, which indenture contains customary covenants and events of default provisions. The Company received proceeds from the offering of approximately $393.9 million, which were net of underwriting discounts, commissions and offering expenses. | |
Asset-backed securitization facility | |
On May 15, 2014, Sterling Jewelers Receivables Master Note Trust (the “Issuer”), a Delaware statutory trust and an indirect subsidiary of the Company, issued two-year revolving asset-backed variable funding notes pursuant to a master indenture dated as of November 2, 2001, as supplemented by an indenture supplement dated as of May 15, 2014 among the Issuer, Sterling Jewelers Inc. (“SJI”) and Deutsche Bank Trust Company Americas, the indenture trustee. Under terms of the notes, the Issuer has obtained $600 million of financing from commercial paper conduits sponsored by JPMorgan Chase Bank, N.A., which indebtedness is secured by credit card receivables originated from time to time by SJI. The credit card receivables will ultimately be transferred to the Issuer and are serviced by SJI. Signet guarantees the performance by SJI of its obligations under the agreements associated with this financing arrangement. Borrowings under the asset-backed variable funding notes will bear interest at a rate per annum equal to LIBOR plus an applicable margin. | |
New term loan and amended revolving credit agreement | |
On May 27, 2014, Signet amended and restated its existing credit agreement to (i) add a new $400 million term loan facility and (ii) amend its existing revolving credit facility. The new term loan facility is a $400 million 5-year senior unsecured facility with JPMorgan Chase Bank, N.A, acting as administrative agent. Signet simultaneously amended and restated its credit facility extending the maturity date to 2019. Borrowings under each of the term loan facility and the amended revolving credit facility will bear interest at a rate per annum equal to an applicable margin, plus, at Signet’s option, either (a) a base rate or (b) a LIBOR rate. The amended and restated credit agreement provides that Signet may voluntarily repay outstanding loans at any time without premium or penalty other than reimbursement of the lender’s redeployment and breakage costs in certain cases. | |
Signet will be required to make scheduled quarterly payments commencing on November 1, 2014 equal to the amounts per annum of the original principal amount of the term loan as follows: 5% in year one, 7.5% in year two, 10% in year three, 12.5% in year four and 15% in year five, with the balance due on May 27, 2019. | |
The amended and restated credit agreement contains various customary representatives and warranties, financial reporting requirements and other affirmative and negative covenants. As with Signet’s prior credit facility, Signet will be required to maintain at all times a leverage ratio of no greater than 2.50 to 1.00 and a fixed charge coverage ratio of no less than 1.40 to 1.00, both determined as of the end of each fiscal quarter of Signet for the trailing twelve months. | |
No borrowings were drawn on the prior credit facility as of May 3, 2014. As of the date of this report, $400 million was drawn on the new term loan facility and no borrowings were drawn on the amended revolving credit facility. |
Condensed_consolidating_financ
Condensed consolidating financial information | 3 Months Ended | ||||||||||||||||||||||||
3-May-14 | |||||||||||||||||||||||||
Condensed consolidating financial information | ' | ||||||||||||||||||||||||
20. Condensed consolidating financial information | |||||||||||||||||||||||||
The accompanying condensed consolidating financial information has been prepared and presented pursuant to SEC Regulation S-X, Rule 3-10, “Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered.” We and certain of our subsidiaries have guaranteed the obligations under certain debt securities that have been issued by Signet UK Finance plc. The following presents the condensed consolidating financial information for: (i) the indirect Parent Company (Signet Jewelers Limited); (ii) the Issuer of the guaranteed obligations (Signet UK Finance plc); (iii) the Guarantor subsidiaries, on a combined basis; (iv) the non-guarantor subsidiaries, on a combined basis; (v) consolidating eliminations; and (vi) Signet Jewelers Limited and Subsidiaries on a consolidated basis. Each Guarantor subsidiary is 100% owned by the Parent Company at the date of each balance sheet presented. The Guarantor subsidiaries, along with Signet Jewelers Limited, will fully and unconditionally guarantee the obligations of Signet UK Finance plc under any such debt securities. Each entity in the consolidating financial information follows the same accounting policies as described in the consolidated financial statements. | |||||||||||||||||||||||||
The accompanying condensed consolidating financial information has been presented on the equity method of accounting for all periods presented. Under this method, investments in subsidiaries are recorded at cost and adjusted for the subsidiaries’ cumulative results of operations, capital contributions and distributions, and other changes in equity. Elimination entries include consolidating and eliminating entries for investments in subsidiaries, and intercompany activity and balances. | |||||||||||||||||||||||||
Condensed Consolidated Income Statement | |||||||||||||||||||||||||
For the 13 week period ended May 3, 2014 | |||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
(in millions) | Signet | Signet UK | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||||
Jewelers | Finance plc | Subsidiaries | Guarantor | ||||||||||||||||||||||
Limited | Subsidiaries | ||||||||||||||||||||||||
Sales | $ | — | $ | — | $ | 1,043.70 | $ | 12.4 | $ | — | $ | 1,056.10 | |||||||||||||
Cost of sales | — | — | (647.6 | ) | (1.3 | ) | — | (648.9 | ) | ||||||||||||||||
Gross margin | — | — | 396.1 | 11.1 | — | 407.2 | |||||||||||||||||||
Selling, general and administrative expenses | (0.4 | ) | — | (303.8 | ) | (6.3 | ) | — | (310.5 | ) | |||||||||||||||
Other operating income, net | — | — | 52 | 2 | — | 54 | |||||||||||||||||||
Operating (loss) income | (0.4 | ) | — | 144.3 | 6.8 | — | 150.7 | ||||||||||||||||||
Intercompany interest (expense) income | — | — | (7.0 | ) | 7 | — | — | ||||||||||||||||||
Interest expense, net | — | — | (1.8 | ) | — | — | (1.8 | ) | |||||||||||||||||
(Loss) income before income taxes | (0.4 | ) | — | 135.5 | 13.8 | — | 148.9 | ||||||||||||||||||
Income taxes | — | — | (55.9 | ) | 3.6 | — | (52.3 | ) | |||||||||||||||||
Equity in income of subsidiaries | 97 | — | 91.2 | 80.8 | (269.0 | ) | — | ||||||||||||||||||
Net income | $ | 96.6 | $ | — | $ | 170.8 | $ | 98.2 | $ | (269.0 | ) | $ | 96.6 | ||||||||||||
Condensed Consolidated Income Statement | |||||||||||||||||||||||||
For the 13 week period ended May 4, 2013 | |||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
(in millions) | Signet | Signet UK | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||||
Jewelers | Finance plc | Subsidiaries | Guarantor | ||||||||||||||||||||||
Limited | Subsidiaries | ||||||||||||||||||||||||
Sales | $ | — | $ | — | $ | 981.7 | $ | 11.9 | $ | — | $ | 993.6 | |||||||||||||
Cost of sales | — | — | (609.3 | ) | (1.5 | ) | — | (610.8 | ) | ||||||||||||||||
Gross margin | — | — | 372.4 | 10.4 | — | 382.8 | |||||||||||||||||||
Selling, general and administrative expenses | (0.4 | ) | — | (285.6 | ) | (1.0 | ) | — | (287.0 | ) | |||||||||||||||
Other operating income, net | — | — | 47.4 | (0.4 | ) | — | 47 | ||||||||||||||||||
Operating (loss) income | (0.4 | ) | — | 134.2 | 9 | — | 142.8 | ||||||||||||||||||
Intercompany interest (expense) income | — | — | (8.1 | ) | 8.1 | — | — | ||||||||||||||||||
Interest expense, net | — | — | (0.9 | ) | — | — | (0.9 | ) | |||||||||||||||||
(Loss) income before income taxes | (0.4 | ) | — | 125.2 | 17.1 | — | 141.9 | ||||||||||||||||||
Income taxes | — | — | (48.8 | ) | (1.3 | ) | — | (50.1 | ) | ||||||||||||||||
Equity in income of subsidiaries | 92.2 | — | 83.7 | 76 | (251.9 | ) | — | ||||||||||||||||||
Net income | $ | 91.8 | $ | — | $ | 160.1 | $ | 91.8 | $ | (251.9 | ) | $ | 91.8 | ||||||||||||
Condensed Consolidated Statement of Comprehensive Income | |||||||||||||||||||||||||
For the 13 week period ended May 3, 2014 | |||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
(in millions) | Signet | Signet UK | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||||
Jewelers | Finance plc | Subsidiaries | Guarantor | ||||||||||||||||||||||
Limited | Subsidiaries | ||||||||||||||||||||||||
Net income | $ | 96.6 | $ | — | $ | 170.8 | $ | 98.2 | $ | (269.0 | ) | $ | 96.6 | ||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | 10.9 | (1.8 | ) | 0.5 | 9.6 | ||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||||
Unrealized gain | — | — | 0.3 | — | — | 0.3 | |||||||||||||||||||
Reclassification adjustment for losses to net income | — | — | 4.7 | — | — | 4.7 | |||||||||||||||||||
Pension plan: | |||||||||||||||||||||||||
Actuarial gain | — | — | — | — | — | — | |||||||||||||||||||
Reclassification adjustment to net income for amortization of actuarial loss | — | — | 0.5 | — | — | 0.4 | |||||||||||||||||||
Prior service benefit | — | — | — | — | — | — | |||||||||||||||||||
Reclassification adjustment to net income for amortization of prior service credits | — | — | (0.4 | ) | — | — | (0.3 | ) | |||||||||||||||||
Total other comprehensive (loss) income | — | — | 16 | (1.8 | ) | 0.5 | 14.7 | ||||||||||||||||||
Total comprehensive income | $ | 96.6 | $ | — | $ | 186.8 | $ | 96.4 | $ | (268.5 | ) | $ | 111.3 | ||||||||||||
Condensed Consolidated Statement of Comprehensive Income | |||||||||||||||||||||||||
For the 13 week period ended May 4, 2013 | |||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
(in millions) | Signet | Signet UK | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||||
Jewelers | Finance plc | Subsidiaries | Guarantor | ||||||||||||||||||||||
Limited | Subsidiaries | ||||||||||||||||||||||||
Net income | $ | 91.8 | $ | — | $ | 160.1 | $ | 91.8 | $ | (251.9 | ) | $ | 91.8 | ||||||||||||
Other comprehensive (loss) income: | |||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | (2.1 | ) | 0.4 | (0.1 | ) | (1.8 | ) | ||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||||
Unrealized loss | — | — | (11.4 | ) | — | — | (11.4 | ) | |||||||||||||||||
Reclassification adjustment for gains to net income | — | — | (0.6 | ) | — | — | (0.6 | ) | |||||||||||||||||
Pension plan: | |||||||||||||||||||||||||
Actuarial loss | — | — | — | — | — | — | |||||||||||||||||||
Reclassification adjustment to net income for amortization of actuarial loss | — | — | 0.5 | — | — | 0.5 | |||||||||||||||||||
Prior service costs | — | — | — | — | — | — | |||||||||||||||||||
Reclassification adjustment to net income for amortization of prior service credits | — | — | (0.4 | ) | — | — | (0.4 | ) | |||||||||||||||||
Total other comprehensive (loss) income | — | — | (14.0 | ) | 0.4 | (0.1 | ) | (13.7 | ) | ||||||||||||||||
Total comprehensive income | $ | 91.8 | $ | — | $ | 146.1 | $ | 92.2 | $ | (252.0 | ) | $ | 78.1 | ||||||||||||
Condensed Consolidated Balance Sheet | |||||||||||||||||||||||||
May 3, 2014 | |||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
(in millions) | Signet | Signet UK | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||||
Jewelers | Finance plc | Subsidiaries | Guarantor | ||||||||||||||||||||||
Limited | Subsidiaries | ||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 1.7 | $ | — | $ | 226.7 | $ | 20.7 | $ | — | $ | 249.1 | |||||||||||||
Accounts receivable, net | — | — | 1,299.40 | 8.8 | — | 1,308.20 | |||||||||||||||||||
Intercompany receivables, net | 24.3 | — | — | 233.5 | (257.8 | ) | — | ||||||||||||||||||
Other receivables | — | — | 46 | 1.1 | — | 47.1 | |||||||||||||||||||
Other current assets | 0.1 | — | 90.5 | 0.4 | — | 91 | |||||||||||||||||||
Deferred tax assets | — | — | 2.5 | 0.2 | — | 2.7 | |||||||||||||||||||
Income taxes | — | — | 10.1 | 0.6 | — | 10.7 | |||||||||||||||||||
Inventories | — | — | 1,469.40 | 54.5 | — | 1,523.90 | |||||||||||||||||||
Total current assets | 26.1 | — | 3,144.60 | 319.8 | (257.8 | ) | 3,232.70 | ||||||||||||||||||
Non-current assets: | |||||||||||||||||||||||||
Property, plant and equipment, net | — | — | 487.8 | 6.2 | — | 494 | |||||||||||||||||||
Investment in subsidiaries | 2,634.00 | — | 1,559.90 | 1,243.90 | (5,437.8 | ) | — | ||||||||||||||||||
Intercompany receivables, net | — | — | — | 1,098.00 | (1,098.0 | ) | — | ||||||||||||||||||
Other assets | — | — | 116.7 | 3.6 | — | 120.3 | |||||||||||||||||||
Deferred tax assets | — | — | 114.8 | — | — | 114.8 | |||||||||||||||||||
Retirement benefit asset | — | — | 59.8 | — | — | 59.8 | |||||||||||||||||||
Total assets | $ | 2,660.10 | $ | — | $ | 5,483.60 | $ | 2,671.50 | $ | (6,793.6 | ) | $ | 4,021.60 | ||||||||||||
Liabilities and Shareholders’ equity | |||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||
Loans and overdrafts | $ | — | $ | — | $ | 8.8 | $ | — | $ | — | $ | 8.8 | |||||||||||||
Accounts payable | — | — | 162.9 | 0.2 | — | 163.1 | |||||||||||||||||||
Intercompany payables, net | — | — | 257.8 | — | (257.8 | ) | — | ||||||||||||||||||
Accrued expenses and other current liabilities | 16.3 | — | 274.2 | 3.3 | — | 293.8 | |||||||||||||||||||
Deferred revenue | — | — | 174.4 | — | — | 174.4 | |||||||||||||||||||
Deferred tax liabilities | — | — | 123.9 | — | — | 123.9 | |||||||||||||||||||
Income taxes | — | — | 35.7 | (3.5 | ) | — | 32.2 | ||||||||||||||||||
Total current liabilities | 16.3 | — | 1,037.70 | — | (257.8 | ) | 796.2 | ||||||||||||||||||
Non-current liabilities: | |||||||||||||||||||||||||
Intercompany payables, net | — | — | 1,098.00 | — | (1,098.0 | ) | — | ||||||||||||||||||
Deferred tax liabilities | — | — | 2.7 | — | — | 2.7 | |||||||||||||||||||
Other liabilities | — | — | 118.5 | 3.1 | — | 121.6 | |||||||||||||||||||
Deferred revenue | — | — | 457.3 | — | — | 457.3 | |||||||||||||||||||
Total liabilities | 16.3 | — | 2,714.20 | 3.1 | (1,355.8 | ) | 1,377.80 | ||||||||||||||||||
Total shareholders’ equity | 2,643.80 | — | 2,769.40 | 2,668.40 | (5,437.8 | ) | 2,643.80 | ||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 2,660.10 | $ | — | $ | 5,483.60 | $ | 2,671.50 | $ | (6,793.6 | ) | $ | 4,021.60 | ||||||||||||
Condensed Consolidated Balance Sheet | |||||||||||||||||||||||||
February 1, 2014 | |||||||||||||||||||||||||
(in millions) | Signet | Signet UK | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||||
Jewelers | Finance plc | Subsidiaries | Guarantor | ||||||||||||||||||||||
Limited | Subsidiaries | ||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 1.4 | $ | — | $ | 237 | $ | 9.2 | $ | — | $ | 247.6 | |||||||||||||
Accounts receivable, net | — | — | 1,361.30 | 12.7 | — | 1,374.00 | |||||||||||||||||||
Intercompany receivables, net | 47.7 | — | — | 238 | (285.7 | ) | — | ||||||||||||||||||
Other receivables | — | — | 51.1 | 0.4 | — | 51.5 | |||||||||||||||||||
Other current assets | — | — | 86.5 | 0.5 | — | 87 | |||||||||||||||||||
Deferred tax assets | — | — | 2.8 | 0.2 | — | 3 | |||||||||||||||||||
Income taxes | — | — | 6 | 0.5 | — | 6.5 | |||||||||||||||||||
Inventories | — | — | 1,434.50 | 53.5 | — | 1,488.00 | |||||||||||||||||||
Total current assets | 49.1 | — | 3,179.20 | 315 | (285.7 | ) | 3,257.60 | ||||||||||||||||||
Non-current assets: | |||||||||||||||||||||||||
Property, plant and equipment, net | — | — | 481.5 | 6.1 | — | 487.6 | |||||||||||||||||||
Investment in subsidiaries | 2,526.30 | — | 1,452.80 | 1,143.20 | (5,122.3 | ) | — | ||||||||||||||||||
Intercompany receivables, net | — | — | — | 1,098.00 | (1,098.0 | ) | — | ||||||||||||||||||
Other assets | — | — | 110.4 | 3.6 | — | 114 | |||||||||||||||||||
Deferred tax assets | — | — | 113.6 | 0.1 | — | 113.7 | |||||||||||||||||||
Retirement benefit asset | — | — | 56.3 | — | — | 56.3 | |||||||||||||||||||
Total assets | $ | 2,575.40 | $ | — | $ | 5,393.80 | $ | 2,566.00 | $ | (6,506.0 | ) | $ | 4,029.20 | ||||||||||||
Liabilities and Shareholders’ equity | |||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||
Loans and overdrafts | $ | — | $ | — | $ | 19.3 | $ | — | $ | — | $ | 19.3 | |||||||||||||
Accounts payable | — | — | 160.5 | 2.4 | — | 162.9 | |||||||||||||||||||
Intercompany payables, net | — | — | 285.7 | — | (285.7 | ) | — | ||||||||||||||||||
Accrued expenses and other current liabilities | 12.3 | — | 313.1 | 3.1 | — | 328.5 | |||||||||||||||||||
Deferred revenue | — | — | 173 | — | — | 173 | |||||||||||||||||||
Deferred tax liabilities | — | — | 113.1 | — | — | 113.1 | |||||||||||||||||||
Income taxes | — | — | 101.3 | 2.6 | — | 103.9 | |||||||||||||||||||
Total current liabilities | 12.3 | — | 1,166.00 | 8.1 | (285.7 | ) | 900.7 | ||||||||||||||||||
Non-current liabilities: | |||||||||||||||||||||||||
Intercompany payables, net | — | — | 1,098.00 | — | (1,098.0 | ) | — | ||||||||||||||||||
Other liabilities | — | — | 118.5 | 3.2 | — | 121.7 | |||||||||||||||||||
Deferred revenue | — | — | 443.7 | — | — | 443.7 | |||||||||||||||||||
Total liabilities | 12.3 | — | 2,826.20 | 11.3 | (1,383.7 | ) | 1,466.10 | ||||||||||||||||||
Total shareholders’ equity | 2,563.10 | — | 2,567.60 | 2,554.70 | (5,122.3 | ) | 2,563.10 | ||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 2,575.40 | $ | — | $ | 5,393.80 | $ | 2,566.00 | $ | (6,506.0 | ) | $ | 4,029.20 | ||||||||||||
Condensed Consolidated Balance Sheet | |||||||||||||||||||||||||
May 4, 2013 | |||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
(in millions) | Signet | Signet UK | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||||
Jewelers | Finance plc | Subsidiaries | Guarantor | ||||||||||||||||||||||
Limited | Subsidiaries | ||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 9.4 | $ | — | $ | 225 | $ | 29.3 | $ | — | $ | 263.7 | |||||||||||||
Accounts receivable, net | — | — | 1,149.60 | 7.9 | — | 1,157.50 | |||||||||||||||||||
Intercompany receivables, net | 26.6 | — | — | 710.1 | (736.7 | ) | — | ||||||||||||||||||
Other receivables | — | — | 40.1 | 0.1 | — | 40.2 | |||||||||||||||||||
Other current assets | 0.1 | — | 81.8 | (0.1 | ) | — | 81.8 | ||||||||||||||||||
Deferred tax assets | — | — | 2 | 0.3 | — | 2.3 | |||||||||||||||||||
Income taxes | — | — | 10.1 | — | — | 10.1 | |||||||||||||||||||
Inventories | — | — | 1,388.70 | 37.7 | — | 1,426.40 | |||||||||||||||||||
Total current assets | 36.1 | — | 2,897.30 | 785.3 | (736.7 | ) | 2,982.00 | ||||||||||||||||||
Non-current assets: | |||||||||||||||||||||||||
Property, plant and equipment, net | — | — | 429.3 | 0.6 | — | 429.9 | |||||||||||||||||||
Investment in subsidiaries | 2,320.60 | — | 1,398.20 | 1,101.50 | (4,820.3 | ) | — | ||||||||||||||||||
Intercompany receivables, net | — | — | — | 600 | (600.0 | ) | — | ||||||||||||||||||
Other assets | — | — | 107.2 | — | — | 107.2 | |||||||||||||||||||
Deferred tax assets | — | — | 124.9 | — | — | 124.9 | |||||||||||||||||||
Retirement benefit asset | — | — | 50.3 | — | — | 50.3 | |||||||||||||||||||
Total assets | $ | 2,356.70 | $ | — | $ | 5,007.20 | $ | 2,487.40 | $ | (6,157.0 | ) | $ | 3,694.30 | ||||||||||||
Liabilities and Shareholders’ equity | |||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||
Loans and overdrafts | $ | — | $ | — | $ | 5.7 | $ | — | $ | — | $ | 5.7 | |||||||||||||
Accounts payable | — | — | 176.4 | 0.4 | — | 176.8 | |||||||||||||||||||
Intercompany payables, net | — | — | 736.7 | — | (736.7 | ) | — | ||||||||||||||||||
Accrued expenses and other current liabilities | 12.2 | — | 253.5 | 3.7 | — | 269.4 | |||||||||||||||||||
Deferred revenue | — | — | 157.6 | — | — | 157.6 | |||||||||||||||||||
Deferred tax liabilities | — | — | 145.6 | — | — | 145.6 | |||||||||||||||||||
Income taxes | — | — | 63.2 | 1.3 | — | 64.5 | |||||||||||||||||||
Total current liabilities | 12.2 | — | 1,538.70 | 5.4 | (736.7 | ) | 819.6 | ||||||||||||||||||
Non-current liabilities: | |||||||||||||||||||||||||
Intercompany payables, net | — | — | 600 | — | (600.0 | ) | — | ||||||||||||||||||
Deferred tax liabilities | — | 1 | — | — | 1 | ||||||||||||||||||||
Other liabilities | — | — | 108.2 | 5.1 | — | 113.3 | |||||||||||||||||||
Deferred revenue | — | — | 415.9 | — | — | 415.9 | |||||||||||||||||||
Total liabilities | 12.2 | — | 2,663.80 | 10.5 | (1,336.7 | ) | 1,349.80 | ||||||||||||||||||
Total shareholders’ equity | 2,344.50 | — | 2,343.40 | 2,476.90 | (4,820.3 | ) | 2,344.50 | ||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 2,356.70 | $ | — | $ | 5,007.20 | $ | 2,487.40 | $ | (6,157.0 | ) | $ | 3,694.30 | ||||||||||||
Condensed Consolidated Statement of Cash Flows | |||||||||||||||||||||||||
For the 13 week period ended May 3, 2014 | |||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
(in millions) | Signet | Signet UK | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||||
Jewelers | Finance plc | Subsidiaries | Guarantor | ||||||||||||||||||||||
Limited | Subsidiaries | ||||||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||||||
Other cash (used in) provided by operating activities | $ | (0.5 | ) | $ | — | $ | 62.4 | $ | 11.6 | $ | — | $ | 73.5 | ||||||||||||
Net cash (used in) provided by operating activities | (0.5 | ) | — | 62.4 | 11.6 | — | 73.5 | ||||||||||||||||||
Investing activities | |||||||||||||||||||||||||
Purchase of property, plant and equipment | — | — | (27.8 | ) | (0.3 | ) | — | (28.1 | ) | ||||||||||||||||
Net cash used in investing activities | — | — | (27.8 | ) | (0.3 | ) | — | (28.1 | ) | ||||||||||||||||
Financing activities | |||||||||||||||||||||||||
Dividends paid | (12.0 | ) | — | — | — | — | (12.0 | ) | |||||||||||||||||
Intercompany dividends paid | — | — | 1.1 | (1.1 | ) | — | — | ||||||||||||||||||
Proceeds from issuance of common shares | 1 | — | — | — | — | 1 | |||||||||||||||||||
Excess tax benefit from exercise of share awards | — | — | 7.7 | — | — | 7.7 | |||||||||||||||||||
Repurchase of common shares | (11.4 | ) | — | — | — | — | (11.4 | ) | |||||||||||||||||
Net settlement of equity based awards | (15.3 | ) | — | — | — | — | (15.3 | ) | |||||||||||||||||
Payment of debt issuance costs | — | — | (3.0 | ) | — | — | (3.0 | ) | |||||||||||||||||
Repayment of short-term borrowings | — | — | (10.5 | ) | — | — | (10.5 | ) | |||||||||||||||||
Intercompany activity, net | 38.5 | — | (42.4 | ) | 3.9 | — | — | ||||||||||||||||||
Net cash provided by (used in) financing activities | 0.8 | — | (47.1 | ) | 2.8 | — | (43.5 | ) | |||||||||||||||||
Cash and cash equivalents at beginning of period | 1.4 | — | 237 | 9.2 | — | 247.6 | |||||||||||||||||||
Increase (decrease) in cash and cash equivalents | 0.3 | — | (12.5 | ) | 14.1 | — | 1.9 | ||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | 2.2 | (2.6 | ) | — | (0.4 | ) | |||||||||||||||||
Cash and cash equivalents at end of period | $ | 1.7 | $ | — | $ | 226.7 | $ | 20.7 | $ | — | $ | 249.1 | |||||||||||||
Condensed Consolidated Statement of Cash Flows | |||||||||||||||||||||||||
For the 13 week period ended May 4, 2013 | |||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
(in millions) | Signet | Signet UK | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||||
Jewelers | Finance plc | Subsidiaries | Guarantor | ||||||||||||||||||||||
Limited | Subsidiaries | ||||||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||||||
Other cash provided by operating activities | $ | 39.5 | $ | — | $ | 31.1 | $ | 14.5 | $ | (40.0 | ) | $ | 45.1 | ||||||||||||
Net cash provided by operating activities | 39.5 | — | 31.1 | 14.5 | (40.0 | ) | $ | 45.1 | |||||||||||||||||
Investing activities | |||||||||||||||||||||||||
Purchase of property, plant and equipment | — | — | (23.2 | ) | — | — | (23.2 | ) | |||||||||||||||||
Net cash used in investing activities | — | — | (23.2 | ) | — | — | (23.2 | ) | |||||||||||||||||
Financing activities | |||||||||||||||||||||||||
Dividends paid | (9.8 | ) | — | — | — | — | (9.8 | ) | |||||||||||||||||
Intercompany dividends paid | — | — | (33.3 | ) | (6.7 | ) | 40 | — | |||||||||||||||||
Proceeds from issuance of common shares | 5 | — | — | — | — | 5 | |||||||||||||||||||
Repurchase of common shares | (50.1 | ) | — | — | — | — | (50.1 | ) | |||||||||||||||||
Net settlement of equity based awards | (9.1 | ) | — | — | — | — | (9.1 | ) | |||||||||||||||||
Proceeds from short-term borrowings | — | — | 5.7 | — | — | 5.7 | |||||||||||||||||||
Intercompany activity, net | 20.5 | — | (25.2 | ) | 4.7 | — | — | ||||||||||||||||||
Net cash used in financing activities | (43.5 | ) | — | (52.8 | ) | (2.0 | ) | 40 | (58.3 | ) | |||||||||||||||
Cash and cash equivalents at beginning of period | 13.4 | — | 271.3 | 16.3 | — | 301 | |||||||||||||||||||
(Decrease) increase in cash and cash equivalents | (4.0 | ) | — | (44.9 | ) | 12.5 | — | (36.4 | ) | ||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (1.4 | ) | 0.5 | — | (0.9 | ) | |||||||||||||||||
Cash and cash equivalents at end of period | $ | 9.4 | $ | — | $ | 225 | $ | 29.3 | $ | — | $ | 263.7 | |||||||||||||
Principal_accounting_policies_1
Principal accounting policies and basis of preparation (Policies) | 3 Months Ended |
3-May-14 | |
Basis of preparation | ' |
Basis of preparation | |
Signet Jewelers Limited (“Signet”, or the “Company”) is a holding company, incorporated in Bermuda, that operates through its subsidiaries. Signet is a leading retailer whose results are principally derived from one business segment – the retailing of jewelry, watches and associated services. The Company manages its business as two geographical reportable segments, being the United States of America (the “US”) and the United Kingdom (the “UK”). The US division operates retail stores under brands including Kay Jewelers, Jared The Galleria Of Jewelry and various regional brands. The UK division’s retail stores operate under brands including H.Samuel and Ernest Jones. | |
In the fourth quarter of Fiscal 2014, subsequent to the November 4, 2013 acquisition of a diamond polishing factory in Gaborone, Botswana, management established a separate operating segment (“Other”), which consists of all non-reportable segments including subsidiaries involved in the purchasing and conversion of rough diamonds to polished stones. | |
These condensed consolidated financial statements included herein have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) have been condensed or omitted from this report, as is permitted by such rules and regulations. In the opinion of management, the accompanying condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair presentation of the results for the interim periods. It is suggested that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and notes included in Signet’s Annual Report on Form 10-K for the year ended February 1, 2014. | |
Use of estimates | ' |
Use of estimates | |
The preparation of these condensed consolidated financial statements, in conformity with US GAAP and SEC regulations for interim reporting, 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 condensed consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates and assumptions are primarily made in relation to the valuation of receivables, inventory and deferred revenue, fair value of derivatives, depreciation and asset impairment, the valuation of employee benefits, income taxes and contingencies. | |
Fiscal year | ' |
Fiscal year | |
The Company’s fiscal year ends on the Saturday nearest to January 31st. Fiscal 2015 is the 52 week year ending January 31, 2015 and Fiscal 2014 is the 52 week year ending February 1, 2014. Within these condensed consolidated financial statements, the first quarter of the fiscal years 2015 and 2014 refers to the 13 weeks ended May 3, 2014 and May 4, 2013, respectively. | |
Seasonality | ' |
Seasonality | |
Signet’s sales are seasonal, with the first and second quarters each normally accounting for slightly more than 20% of annual sales, the third quarter a little under 20% and the fourth quarter for about 40% of sales, with December being by far the most important month of the year. Sales made in November and December are known as the “Holiday Season.” Due to sales leverage, Signet’s operating income is even more seasonal; about 45% to 50% of Signet’s operating income normally occurs in the fourth quarter, comprised of nearly all of the UK division’s operating income and about 40% to 50% of the US division’s operating income. | |
New accounting pronouncements adopted during the period | ' |
New accounting pronouncements adopted during the period | |
Presentation of Unrecognized Tax Benefit | |
In July 2013, the FASB issued ASU 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” The new guidance requires, unless certain conditions exist, an unrecognized tax benefit to be presented as a reduction to a deferred tax asset in the financial statements for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. Signet adopted this guidance effective for the first quarter ended May 3, 2014 and the implementation of this accounting pronouncement did not have an impact on Signet’s condensed consolidated financial statements. | |
Reclassification | ' |
Reclassification | |
Signet has reclassified the presentation of certain prior year information to conform to the current year presentation. |
Segment_information_Tables
Segment information (Tables) | 3 Months Ended | ||||||||||||
3-May-14 | |||||||||||||
Segment Reporting Information, By Segment | ' | ||||||||||||
13 weeks ended | |||||||||||||
(in millions) | May 3, | May 4, | |||||||||||
2014 | 2013 | ||||||||||||
Sales: | |||||||||||||
US | $ | 903.5 | $ | 857.2 | |||||||||
UK | 151.7 | 135 | |||||||||||
Other | 0.9 | 1.4 | |||||||||||
Total sales | $ | 1,056.10 | $ | 993.6 | |||||||||
Operating income (loss): | |||||||||||||
US | $ | 166.3 | $ | 152.8 | |||||||||
UK | — | (4.1 | ) | ||||||||||
Other | (15.6 | )(1) | (5.9 | ) | |||||||||
Total operating income | $ | 150.7 | $ | 142.8 | |||||||||
-1 | Fiscal 2015 balance includes $8.4 million of acquisition related costs, see Note 19 for additional information. | ||||||||||||
(in millions) | May 3, | February 1, | May 4, | ||||||||||
2014 | 2014 | 2013 | |||||||||||
Total assets: | |||||||||||||
US | $ | 3,263.80 | $3,311.00 | $ | 3,017.00 | ||||||||
UK | 493.2 | 484.6 | 441.7 | ||||||||||
Other | 264.6 | 233.6 | 235.6 | ||||||||||
Total assets | $ | 4,021.60 | $4,029.20 | $ | 3,694.30 | ||||||||
Earnings_per_share_Tables
Earnings per share (Tables) | 3 Months Ended | ||||||||
3-May-14 | |||||||||
Earnings Per Share, Basic and Diluted | ' | ||||||||
13 weeks ended | |||||||||
(in millions, except per share amounts) | May 3, | May 4, | |||||||
2014 | 2013 | ||||||||
Net income | $ | 96.6 | $ | 91.8 | |||||
Basic weighted average number of shares outstanding | 79.9 | 80.8 | |||||||
Dilutive effect of share awards | 0.4 | 0.5 | |||||||
Diluted weighted average number of shares outstanding | 80.3 | 81.3 | |||||||
Earnings per share – basic | $ | 1.21 | $ | 1.14 | |||||
Earnings per share – diluted | $ | 1.2 | $ | 1.13 |
Shareholders_equity_Tables
Shareholders' equity (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||
3-May-14 | |||||||||||||||||||||||||||||
Share Repurchase Activity | ' | ||||||||||||||||||||||||||||
Share repurchase | |||||||||||||||||||||||||||||
13 weeks ended May 3, 2014 | 13 weeks ended May 4, 2013 | ||||||||||||||||||||||||||||
Amount | Shares | Amount | Average | Shares | Amount | Average | |||||||||||||||||||||||
authorized | repurchased | repurchased | repurchase | repurchased | repurchased | repurchase | |||||||||||||||||||||||
price per | price per | ||||||||||||||||||||||||||||
share | share | ||||||||||||||||||||||||||||
(in millions) | (in millions) | (in millions) | |||||||||||||||||||||||||||
2013 Program(1) | $ | 350 | 126,468 | $ | 12.9 | (3) | $ | 102.1 | na | na | na | ||||||||||||||||||
2011 Program(2) | 350 | na | na | na | 749,245 | $ | 50.1 | $ | 66.92 | ||||||||||||||||||||
Total | 126,468 | $ | 12.9 | $ | 102.1 | 749,245 | $ | 50.1 | $ | 66.92 | |||||||||||||||||||
-1 | In June 2013, the Board authorized the repurchase of up to $350 million of Signet’s common shares (the “2013 Program”). The 2013 Program may be suspended or discontinued at any time without notice. The 2013 Program had $282.5 million remaining as of May 3, 2014. | ||||||||||||||||||||||||||||
-2 | In October 2011, the Board authorized the repurchase of up to $300 million of Signet’s common shares (the “2011 Program”), which authorization was subsequently increased to $350 million. The 2011 Program was completed as of May 4, 2013. | ||||||||||||||||||||||||||||
-3 | As of May 3, 2014, $11.4 million has been paid to repurchase common shares and $1.5 million has been recorded in accrued expenses and other current liabilities in the consolidated balance sheets reflecting shares repurchased but not yet settled and paid for by the end of the first quarter. | ||||||||||||||||||||||||||||
na | Not applicable. | ||||||||||||||||||||||||||||
Payment of Dividends | ' | ||||||||||||||||||||||||||||
Dividend | |||||||||||||||||||||||||||||
Fiscal 2015 | Fiscal 2014 | ||||||||||||||||||||||||||||
Cash dividend | Total | Cash dividend | Total | ||||||||||||||||||||||||||
per share | dividends | per share | dividends | ||||||||||||||||||||||||||
(in millions) | (in millions) | ||||||||||||||||||||||||||||
First quarter(1) | $ | 0.18 | $ | 14.4 | (2) | $ | 0.15 | $ | 12.1 | ||||||||||||||||||||
-1 | Signet’s dividend policy results in the dividend payment date being a quarter in arrears from the declaration date. As a result, the fourth quarter Fiscal 2014 $0.15 per share cash dividend was paid on February 27, 2014 in the aggregate amount of $12.0 million. | ||||||||||||||||||||||||||||
-2 | As of May 3, 2014, $14.4 million has been recorded in accrued expenses and other current liabilities in the consolidated balance sheets reflecting the cash dividend declared for the first quarter of Fiscal 2015, which has a record date of May 2, 2014 and a payment date of May 28, 2014. |
Accumulated_other_comprehensiv1
Accumulated other comprehensive (loss) income (Tables) | 3 Months Ended | ||||||||||||||||||||
3-May-14 | |||||||||||||||||||||
Changes in Accumulated OCI by Component and Reclassifications Out of Accumulated OCI | ' | ||||||||||||||||||||
Pension plan | |||||||||||||||||||||
(in millions) | Foreign | Gains | Actuarial | Prior | Accumulated | ||||||||||||||||
currency | (losses) on | (losses) | service | other | |||||||||||||||||
translation | cash flow | gains | credit | comprehensive | |||||||||||||||||
hedges | (cost) | (loss) income | |||||||||||||||||||
Balance at February 1, 2014 | $ | (137.0 | ) | $ | (14.3 | ) | $ | (42.5 | ) | $ | 15.3 | $ | (178.5 | ) | |||||||
OCI before reclassifications | 9.6 | 0.3 | — | — | 9.9 | ||||||||||||||||
Amounts reclassified from accumulated OCI | — | 4.7 | 0.4 | (0.3 | ) | 4.8 | |||||||||||||||
Net current-period OCI | 9.6 | 5 | 0.4 | (0.3 | ) | 14.7 | |||||||||||||||
Balance at May 3, 2014 | $ | (127.4 | ) | $ | (9.3 | ) | $ | (42.1 | ) | $ | 15 | $ | (163.8 | ) | |||||||
Reclassification Out of Accumulated OCI | ' | ||||||||||||||||||||
Reclassification activity by individual accumulated OCI component: | Amounts | Amounts | Income statement caption | ||||||||||||||||||
reclassified from | reclassified from | ||||||||||||||||||||
accumulated OCI | accumulated OCI | ||||||||||||||||||||
13 weeks ended | 13 weeks ended | ||||||||||||||||||||
May 3, 2014 | May 4, 2013 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||
(Gains) losses on cash flow hedges: | |||||||||||||||||||||
Foreign currency contracts | $ | — | $ | (0.2 | ) | Cost of sales (see Note 13) | |||||||||||||||
Commodity contracts | 7.4 | (0.8 | ) | Cost of sales (see Note 13) | |||||||||||||||||
Total before income tax | 7.4 | (1.0 | ) | ||||||||||||||||||
(2.7 | ) | 0.4 | Income taxes | ||||||||||||||||||
Net of tax | 4.7 | (0.6 | ) | ||||||||||||||||||
Defined benefit pension plan items: | |||||||||||||||||||||
Amortization of unrecognized net prior service credit | (0.4 | ) | (0.4 | ) | Selling, general and administrative expenses (1) | ||||||||||||||||
Amortization of unrecognized actuarial loss | 0.5 | 0.6 | Selling, general and administrative expenses (1) | ||||||||||||||||||
Total before income tax | 0.1 | 0.2 | |||||||||||||||||||
— | (0.1 | ) | Income taxes | ||||||||||||||||||
Net of tax | 0.1 | 0.1 | |||||||||||||||||||
Total reclassifications | $ | 4.8 | $ | (0.5 | ) | ||||||||||||||||
-1 | These items are included in the computation of net periodic pension benefit (cost). See Note 14 for additional information. |
Accounts_receivable_net_Tables
Accounts receivable, net (Tables) | 3 Months Ended | ||||||||||||||||||||||||
3-May-14 | |||||||||||||||||||||||||
Accounts Receivable By Portfolio Segment, Net | ' | ||||||||||||||||||||||||
(in millions) | May 3, | February 1, | May 4, | ||||||||||||||||||||||
2014 | 2014 | 2013 | |||||||||||||||||||||||
Accounts receivable by portfolio segment, net: | |||||||||||||||||||||||||
US customer in-house finance receivables | $ | 1,294.80 | $ | 1,356.00 | $ | 1,145.90 | |||||||||||||||||||
Other accounts receivable | 13.4 | 18 | 11.6 | ||||||||||||||||||||||
Total accounts receivable, net | $ | 1,308.20 | $ | 1,374.00 | $ | 1,157.50 | |||||||||||||||||||
Allowance for Credit Losses on US Customer In-House Finance Receivables | ' | ||||||||||||||||||||||||
Allowance for credit losses on US customer in-house finance receivables: | |||||||||||||||||||||||||
(in millions) | 13 weeks | 52 weeks | 13 weeks | ||||||||||||||||||||||
ended | ended | ended | |||||||||||||||||||||||
May 3, | February 1, | May 4, | |||||||||||||||||||||||
2014 | 2014 | 2013 | |||||||||||||||||||||||
Beginning balance | $ | (97.8 | ) | $ | (87.7 | ) | $ | (87.7 | ) | ||||||||||||||||
Charge-offs | 32.3 | 128.2 | 29.4 | ||||||||||||||||||||||
Recoveries | 8.5 | 26 | 7.4 | ||||||||||||||||||||||
Provision | (30.8 | ) | (164.3 | ) | (28.7 | ) | |||||||||||||||||||
Ending balance | $ | (87.8 | ) | $ | (97.8 | ) | $ | (79.6 | ) | ||||||||||||||||
Ending receivable balance evaluated for impairment | 1,382.60 | 1,453.80 | 1,225.50 | ||||||||||||||||||||||
US customer in-house finance receivables, net | $ | 1,294.80 | $ | 1,356.00 | $ | 1,145.90 | |||||||||||||||||||
Credit Quality Indicator and Age Analysis of Past Due US Customer In-House Finance Receivables | ' | ||||||||||||||||||||||||
Credit quality indicator and age analysis of past due US customer in-house finance receivables: | |||||||||||||||||||||||||
May 3, | February 1, | May 4, | |||||||||||||||||||||||
2014 | 2014 | 2013 | |||||||||||||||||||||||
(in millions) | Gross | Valuation | Gross | Valuation | Gross | Valuation | |||||||||||||||||||
allowance | allowance | allowance | |||||||||||||||||||||||
Performing: | |||||||||||||||||||||||||
Current, aged 0-30 days | $ | 1,130.80 | $ | (34.4 | ) | $ | 1,170.40 | $ | (36.3 | ) | $ | 999.1 | $ | (30.5 | ) | ||||||||||
Past due, aged 31-90 days | 205.6 | (7.2 | ) | 229.9 | (8.0 | ) | 183.9 | (6.6 | ) | ||||||||||||||||
Non Performing: | |||||||||||||||||||||||||
Past due, aged more than 90 days | 46.2 | (46.2 | ) | 53.5 | (53.5 | ) | 42.5 | (42.5 | ) | ||||||||||||||||
$ | 1,382.60 | $ | (87.8 | ) | $ | 1,453.80 | $ | (97.8 | ) | $ | 1,225.50 | $ | (79.6 | ) | |||||||||||
May 3, | February 1, | May 4, | |||||||||||||||||||||||
2014 | 2014 | 2013 | |||||||||||||||||||||||
(as a percentage of the ending receivable balance) | Gross | Valuation | Gross | Valuation | Gross | Valuation | |||||||||||||||||||
allowance | allowance | allowance | |||||||||||||||||||||||
Performing | 96.7 | % | 3.1 | % | 96.3 | % | 3.2 | % | 96.5 | % | 3.2 | % | |||||||||||||
Non Performing | 3.3 | % | 100 | % | 3.7 | % | 100 | % | 3.5 | % | 100 | % | |||||||||||||
100 | % | 6.4 | % | 100 | % | 6.7 | % | 100 | % | 6.5 | % | ||||||||||||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||||||||
3-May-14 | |||||||||||||
Inventories | ' | ||||||||||||
Inventories | |||||||||||||
(in millions) | May 3, | February 1, | May 4, | ||||||||||
2014 | 2014 | 2013 | |||||||||||
Raw materials | $ | 38 | $ | 41.8 | $ | 36.4 | |||||||
Finished goods | 1,485.90 | 1,446.20 | 1,390.00 | ||||||||||
Total inventories | $ | 1,523.90 | $ | 1,488.00 | $ | 1,426.40 | |||||||
Other_assets_Tables
Other assets (Tables) | 3 Months Ended | ||||||||||||||||
3-May-14 | |||||||||||||||||
Other Assets | ' | ||||||||||||||||
(in millions) | May 3, | February 1, | May 4, | ||||||||||||||
2014 | 2014 | 2013 | |||||||||||||||
Deferred extended service plan costs | $ | 63.6 | $ | 61.9 | $ | 58.6 | |||||||||||
Goodwill | 26.8 | 26.8 | 24.6 | ||||||||||||||
Other assets | 29.9 | 25.3 | 24 | ||||||||||||||
Total other assets | $ | 120.3 | $ | 114 | $ | 107.2 | |||||||||||
Summary of Goodwill by Reporting Unit | ' | ||||||||||||||||
The following table summarizes the Company’s goodwill by reporting unit: | |||||||||||||||||
(in millions) | US | UK | Other | Total | |||||||||||||
Balance at February 2, 2013 | $ | 24.6 | $ | — | $ | — | $ | 24.6 | |||||||||
Acquisitions(1) | (1.4 | ) | — | 3.6 | 2.2 | ||||||||||||
Balance at February 1, 2014 | 23.2 | — | 3.6 | 26.8 | |||||||||||||
Acquisition | — | — | — | — | |||||||||||||
Balance at May 3, 2014 | $ | 23.2 | $ | — | $ | 3.6 | $ | 26.8 | |||||||||
-1 | See Note 18 for additional discussion of the goodwill recorded by the Company during Fiscal 2014. |
Deferred_revenue_Tables
Deferred revenue (Tables) | 3 Months Ended | ||||||||||||
3-May-14 | |||||||||||||
Deferred Revenue | ' | ||||||||||||
Deferred revenue is comprised primarily of ESP and voucher promotions as follows: | |||||||||||||
(in millions) | May 3, | February 1, | May 4, | ||||||||||
2014 | 2014 | 2013 | |||||||||||
ESP deferred revenue | $ | 619.6 | $ | 601.2 | $ | 563.4 | |||||||
Voucher promotions and other | 12.1 | 15.5 | 10.1 | ||||||||||
Total deferred revenue | $ | 631.7 | $ | 616.7 | $ | 573.5 | |||||||
Disclosed as: | |||||||||||||
Current liabilities | $ | 174.4 | $ | 173 | $ | 157.6 | |||||||
Non-current liabilities | 457.3 | 443.7 | 415.9 | ||||||||||
Total deferred revenue | $ | 631.7 | $ | 616.7 | $ | 573.5 | |||||||
ESP Deferred Revenue | ' | ||||||||||||
13 weeks ended | |||||||||||||
(in millions) | May 3, | May 4, | |||||||||||
2014 | 2013 | ||||||||||||
ESP deferred revenue, beginning of period: | $ | 601.2 | $ | 549.7 | |||||||||
Plans sold | 64.2 | 55.3 | |||||||||||
Revenue recognized | (45.8 | ) | (41.6 | ) | |||||||||
ESP deferred revenue, end of period | $ | 619.6 | $ | 563.4 | |||||||||
Warranty_reserve_Tables
Warranty reserve (Tables) | 3 Months Ended | ||||||||||||
3-May-14 | |||||||||||||
Warranty Reserve for Diamond and Gemstone Guarantee | ' | ||||||||||||
Warranty reserve for diamond and gemstone guarantee, included in accrued expenses and other current liabilities, and other non-current liabilities, is as follows: | |||||||||||||
(in millions) | 13 weeks | 52 weeks | 13 weeks | ||||||||||
ended | ended | ended | |||||||||||
May 3, | February 1, | May 4, | |||||||||||
2014 | 2014 | 2013 | |||||||||||
Warranty reserve, beginning of period: | $ | 19.1 | $ | 18.5 | $ | 18.5 | |||||||
Warranty expense | 1.7 | 7.4 | 1.6 | ||||||||||
Utilized | (1.4 | ) | (6.8 | ) | (1.5 | ) | |||||||
Warranty reserve, end of period | $ | 19.4 | $ | 19.1 | $ | 18.6 | |||||||
Disclosed as: | |||||||||||||
Current liabilities | $ | 6.7 | $ | 6.7 | $ | 6.8 | |||||||
Non-current liabilities | 12.7 | 12.4 | 11.8 | ||||||||||
Total warranty reserve | $ | 19.4 | $ | 19.1 | $ | 18.6 | |||||||
Financial_instruments_and_fair1
Financial instruments and fair value (Tables) | 3 Months Ended | ||||||||||||||||||||||||
3-May-14 | |||||||||||||||||||||||||
Fair Value and Presentation of Derivative Instruments in Condensed Consolidated Balance Sheets | ' | ||||||||||||||||||||||||
The following table summarizes the fair value and presentation of derivative instruments in the condensed consolidated balance sheets: | |||||||||||||||||||||||||
Derivative assets | |||||||||||||||||||||||||
Fair value | |||||||||||||||||||||||||
(in millions) | Balance sheet location | May 3, | February 1, | May 4, | |||||||||||||||||||||
2014 | 2014 | 2013 | |||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||
Foreign currency contracts | Other current assets | $ | — | $ | — | $ | 1.1 | ||||||||||||||||||
Foreign currency contracts | Other assets | — | — | — | |||||||||||||||||||||
Commodity contracts | Other current assets | 1.4 | 0.8 | 3 | |||||||||||||||||||||
Commodity contracts | Other assets | — | — | — | |||||||||||||||||||||
$ | 1.4 | $ | 0.8 | $ | 4.1 | ||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||
Foreign currency contracts | Other current assets | — | 0.2 | — | |||||||||||||||||||||
Total derivative assets | $ | 1.4 | $ | 1 | $ | 4.1 | |||||||||||||||||||
Derivative liabilities | |||||||||||||||||||||||||
Fair value | |||||||||||||||||||||||||
(in millions) | Balance sheet location | May 3, | February 1, | May 4, | |||||||||||||||||||||
2014 | 2014 | 2013 | |||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||
Foreign currency contracts | Other current liabilities | $ | (2.6 | ) | $ | (2.1 | ) | $ | (0.1 | ) | |||||||||||||||
Foreign currency contracts | Other liabilities | — | — | — | |||||||||||||||||||||
Commodity contracts | Other current liabilities | (0.2 | ) | (0.8 | ) | (0.2 | ) | ||||||||||||||||||
Commodity contracts | Other liabilities | — | — | — | |||||||||||||||||||||
$ | (2.8 | ) | $ | (2.9 | ) | $ | (0.3 | ) | |||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||
Foreign currency contracts | Other current liabilities | $ | (0.2 | ) | $ | — | $ | (0.2 | ) | ||||||||||||||||
Total derivative liabilities | $ | (3.0 | ) | $ | (2.9 | ) | $ | (0.5 | ) | ||||||||||||||||
Summary of Pre-Tax Gains (Losses) Recorded In Accumulated OCI for Derivatives | ' | ||||||||||||||||||||||||
The following table summarizes the pre-tax gains (losses) recorded in accumulated OCI for derivatives designated in cash flow hedging relationships: | |||||||||||||||||||||||||
May 3, | February 1, | May 4, | |||||||||||||||||||||||
2014 | 2014 | 2013 | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Foreign currency contracts | $ | (3.6 | ) | $ | (2.3 | ) | $ | 1.6 | |||||||||||||||||
Commodity contracts | (9.4 | )(1) | (18.8 | )(1) | (19.3 | )(1) | |||||||||||||||||||
Total | $ | (13.0 | ) | $ | (21.1 | ) | $ | (17.7 | ) | ||||||||||||||||
-1 | As of May 3, 2014, losses include $11.1 million related to commodity contracts terminated prior to contract maturity that occurred in Fiscal 2014 (February 1, 2014 and May 4, 2013: $18.2 million and $22.0 million, respectively). | ||||||||||||||||||||||||
Fair Value of Financial Instruments Held Or Issued | ' | ||||||||||||||||||||||||
The methods Signet uses to determine fair value on an instrument-specific basis are detailed below: | |||||||||||||||||||||||||
May 3, 2014 | February 1, 2014 | May 4, 2013 | |||||||||||||||||||||||
(in millions) | Carrying | Significant other | Carrying | Significant other | Carrying | Significant other | |||||||||||||||||||
Value | observable | Value | observable | Value | observable | ||||||||||||||||||||
inputs | inputs | inputs | |||||||||||||||||||||||
(Level 2) | (Level 2) | (Level 2) | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Foreign currency contracts | $ | — | $ | — | $ | 0.2 | $ | 0.2 | $ | 1.1 | $ | 1.1 | |||||||||||||
Commodity contracts | 1.4 | 1.4 | 0.8 | 0.8 | 3 | 3 | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||
Foreign currency contracts | (2.8 | ) | (2.8 | ) | (2.1 | ) | (2.1 | ) | (0.3 | ) | (0.3 | ) | |||||||||||||
Commodity contracts | (0.2 | ) | (0.2 | ) | (0.8 | ) | (0.8 | ) | (0.2 | ) | (0.2 | ) | |||||||||||||
Cash Flow Hedging | ' | ||||||||||||||||||||||||
Effect of Derivative Instruments on Consolidated Income Statements | ' | ||||||||||||||||||||||||
The following tables summarize the effect of derivative instruments designated as cash flow hedges in OCI and the consolidated income statements: | |||||||||||||||||||||||||
Foreign currency contracts | |||||||||||||||||||||||||
13 weeks ended | |||||||||||||||||||||||||
Income statement caption | May 3, | May 4, | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
(Losses) gains recorded in accumulated OCI, beginning of period | $ | (2.3 | ) | $ | 1.3 | ||||||||||||||||||||
Current period (losses) gains recognized in OCI | (1.3 | ) | 0.5 | ||||||||||||||||||||||
(Gains) losses reclassified from accumulated OCI to net income | Cost of sales | — | (0.2 | ) | |||||||||||||||||||||
(Losses) gains recorded in accumulated OCI, end of period | $ | (3.6 | ) | $ | 1.6 | ||||||||||||||||||||
Commodity contracts | |||||||||||||||||||||||||
13 weeks ended | |||||||||||||||||||||||||
Income statement caption | May 3, | May 4, | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
(Losses) gains recorded in accumulated OCI, beginning of period | $ | (18.8 | ) | $ | (0.5 | ) | |||||||||||||||||||
Current period gains (losses) recognized in OCI | 2 | (18.0 | ) | ||||||||||||||||||||||
Losses (gains) reclassified from accumulated OCI to net income | Cost of sales | 7.4 | (0.8 | ) | |||||||||||||||||||||
(Losses) gains recorded in accumulated OCI, end of period | $ | (9.4 | ) | $ | (19.3 | ) | |||||||||||||||||||
Not Designated as Hedging Instrument | ' | ||||||||||||||||||||||||
Effect of Derivative Instruments on Consolidated Income Statements | ' | ||||||||||||||||||||||||
The following table presents the effects of the Company’s derivatives instruments not designated as cash flow hedges in the consolidated income statements: | |||||||||||||||||||||||||
Amount of gain (loss) | |||||||||||||||||||||||||
recognized in income | |||||||||||||||||||||||||
13 weeks ended | |||||||||||||||||||||||||
Income statement caption | May 3, | May 4, | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||
Foreign currency contracts | Other operating income, net | $ | (1.6 | ) | $ | (0.2 | ) | ||||||||||||||||||
Total | $ | (1.6 | ) | $ | (0.2 | ) | |||||||||||||||||||
Pensions_Tables
Pensions (Tables) | 3 Months Ended | ||||||||
3-May-14 | |||||||||
Components of Net Periodic Pension Benefit | ' | ||||||||
The components of net periodic pension benefit were as follows: | |||||||||
13 weeks ended | |||||||||
(in millions) | May 3, | May 4, | |||||||
2014 | 2013 | ||||||||
Components of net periodic pension benefit: | |||||||||
Service cost | $ | (0.6 | ) | $ | (0.6 | ) | |||
Interest cost | (2.5 | ) | (2.3 | ) | |||||
Expected return on UK Plan assets | 3.8 | 3.2 | |||||||
Amortization of unrecognized prior service credit | 0.4 | 0.4 | |||||||
Amortization of unrecognized actuarial loss | (0.5 | ) | (0.6 | ) | |||||
Net periodic pension benefit | $ | 0.6 | $ | 0.1 | |||||
Loans_overdrafts_and_longterm_1
Loans, overdrafts and long-term debt (Tables) | 3 Months Ended | ||||||||||||
3-May-14 | |||||||||||||
Summary of Loans, Overdrafts and Long-Term Debt | ' | ||||||||||||
(in millions) | May 3, | February 1, | May 4, | ||||||||||
2014 | 2014 | 2013 | |||||||||||
Current liabilities – loans and overdrafts | |||||||||||||
Revolving credit facility | $ | — | $ | — | $ | — | |||||||
Bank overdrafts | 8.8 | 19.3 | 5.7 | ||||||||||
Total loans and overdrafts | $ | 8.8 | $ | 19.3 | $ | 5.7 | |||||||
Condensed_consolidating_financ1
Condensed consolidating financial information (Tables) | 3 Months Ended | ||||||||||||||||||||||||
3-May-14 | |||||||||||||||||||||||||
Condensed Financial Statements | ' | ||||||||||||||||||||||||
Condensed Consolidated Income Statement | |||||||||||||||||||||||||
For the 13 week period ended May 3, 2014 | |||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
(in millions) | Signet | Signet UK | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||||
Jewelers | Finance plc | Subsidiaries | Guarantor | ||||||||||||||||||||||
Limited | Subsidiaries | ||||||||||||||||||||||||
Sales | $ | — | $ | — | $ | 1,043.70 | $ | 12.4 | $ | — | $ | 1,056.10 | |||||||||||||
Cost of sales | — | — | (647.6 | ) | (1.3 | ) | — | (648.9 | ) | ||||||||||||||||
Gross margin | — | — | 396.1 | 11.1 | — | 407.2 | |||||||||||||||||||
Selling, general and administrative expenses | (0.4 | ) | — | (303.8 | ) | (6.3 | ) | — | (310.5 | ) | |||||||||||||||
Other operating income, net | — | — | 52 | 2 | — | 54 | |||||||||||||||||||
Operating (loss) income | (0.4 | ) | — | 144.3 | 6.8 | — | 150.7 | ||||||||||||||||||
Intercompany interest (expense) income | — | — | (7.0 | ) | 7 | — | — | ||||||||||||||||||
Interest expense, net | — | — | (1.8 | ) | — | — | (1.8 | ) | |||||||||||||||||
(Loss) income before income taxes | (0.4 | ) | — | 135.5 | 13.8 | — | 148.9 | ||||||||||||||||||
Income taxes | — | — | (55.9 | ) | 3.6 | — | (52.3 | ) | |||||||||||||||||
Equity in income of subsidiaries | 97 | — | 91.2 | 80.8 | (269.0 | ) | — | ||||||||||||||||||
Net income | $ | 96.6 | $ | — | $ | 170.8 | $ | 98.2 | $ | (269.0 | ) | $ | 96.6 | ||||||||||||
Condensed Consolidated Income Statement | |||||||||||||||||||||||||
For the 13 week period ended May 4, 2013 | |||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
(in millions) | Signet | Signet UK | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||||
Jewelers | Finance plc | Subsidiaries | Guarantor | ||||||||||||||||||||||
Limited | Subsidiaries | ||||||||||||||||||||||||
Sales | $ | — | $ | — | $ | 981.7 | $ | 11.9 | $ | — | $ | 993.6 | |||||||||||||
Cost of sales | — | — | (609.3 | ) | (1.5 | ) | — | (610.8 | ) | ||||||||||||||||
Gross margin | — | — | 372.4 | 10.4 | — | 382.8 | |||||||||||||||||||
Selling, general and administrative expenses | (0.4 | ) | — | (285.6 | ) | (1.0 | ) | — | (287.0 | ) | |||||||||||||||
Other operating income, net | — | — | 47.4 | (0.4 | ) | — | 47 | ||||||||||||||||||
Operating (loss) income | (0.4 | ) | — | 134.2 | 9 | — | 142.8 | ||||||||||||||||||
Intercompany interest (expense) income | — | — | (8.1 | ) | 8.1 | — | — | ||||||||||||||||||
Interest expense, net | — | — | (0.9 | ) | — | — | (0.9 | ) | |||||||||||||||||
(Loss) income before income taxes | (0.4 | ) | — | 125.2 | 17.1 | — | 141.9 | ||||||||||||||||||
Income taxes | — | — | (48.8 | ) | (1.3 | ) | — | (50.1 | ) | ||||||||||||||||
Equity in income of subsidiaries | 92.2 | — | 83.7 | 76 | (251.9 | ) | — | ||||||||||||||||||
Net income | $ | 91.8 | $ | — | $ | 160.1 | $ | 91.8 | $ | (251.9 | ) | $ | 91.8 | ||||||||||||
Condensed Consolidated Statement of Comprehensive Income | |||||||||||||||||||||||||
For the 13 week period ended May 3, 2014 | |||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
(in millions) | Signet | Signet UK | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||||
Jewelers | Finance plc | Subsidiaries | Guarantor | ||||||||||||||||||||||
Limited | Subsidiaries | ||||||||||||||||||||||||
Net income | $ | 96.6 | $ | — | $ | 170.8 | $ | 98.2 | $ | (269.0 | ) | $ | 96.6 | ||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | 10.9 | (1.8 | ) | 0.5 | 9.6 | ||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||||
Unrealized gain | — | — | 0.3 | — | — | 0.3 | |||||||||||||||||||
Reclassification adjustment for losses to net income | — | — | 4.7 | — | — | 4.7 | |||||||||||||||||||
Pension plan: | |||||||||||||||||||||||||
Actuarial gain | — | — | — | — | — | — | |||||||||||||||||||
Reclassification adjustment to net income for amortization of actuarial loss | — | — | 0.5 | — | — | 0.4 | |||||||||||||||||||
Prior service benefit | — | — | — | — | — | — | |||||||||||||||||||
Reclassification adjustment to net income for amortization of prior service credits | — | — | (0.4 | ) | — | — | (0.3 | ) | |||||||||||||||||
Total other comprehensive (loss) income | — | — | 16 | (1.8 | ) | 0.5 | 14.7 | ||||||||||||||||||
Total comprehensive income | $ | 96.6 | $ | — | $ | 186.8 | $ | 96.4 | $ | (268.5 | ) | $ | 111.3 | ||||||||||||
Condensed Consolidated Statement of Comprehensive Income | |||||||||||||||||||||||||
For the 13 week period ended May 4, 2013 | |||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
(in millions) | Signet | Signet UK | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||||
Jewelers | Finance plc | Subsidiaries | Guarantor | ||||||||||||||||||||||
Limited | Subsidiaries | ||||||||||||||||||||||||
Net income | $ | 91.8 | $ | — | $ | 160.1 | $ | 91.8 | $ | (251.9 | ) | $ | 91.8 | ||||||||||||
Other comprehensive (loss) income: | |||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | (2.1 | ) | 0.4 | (0.1 | ) | (1.8 | ) | ||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||||
Unrealized loss | — | — | (11.4 | ) | — | — | (11.4 | ) | |||||||||||||||||
Reclassification adjustment for gains to net income | — | — | (0.6 | ) | — | — | (0.6 | ) | |||||||||||||||||
Pension plan: | |||||||||||||||||||||||||
Actuarial loss | — | — | — | — | — | — | |||||||||||||||||||
Reclassification adjustment to net income for amortization of actuarial loss | — | — | 0.5 | — | — | 0.5 | |||||||||||||||||||
Prior service costs | — | — | — | — | — | — | |||||||||||||||||||
Reclassification adjustment to net income for amortization of prior service credits | — | — | (0.4 | ) | — | — | (0.4 | ) | |||||||||||||||||
Total other comprehensive (loss) income | — | — | (14.0 | ) | 0.4 | (0.1 | ) | (13.7 | ) | ||||||||||||||||
Total comprehensive income | $ | 91.8 | $ | — | $ | 146.1 | $ | 92.2 | $ | (252.0 | ) | $ | 78.1 | ||||||||||||
Condensed Consolidated Balance Sheet | |||||||||||||||||||||||||
May 3, 2014 | |||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
(in millions) | Signet | Signet UK | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||||
Jewelers | Finance plc | Subsidiaries | Guarantor | ||||||||||||||||||||||
Limited | Subsidiaries | ||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 1.7 | $ | — | $ | 226.7 | $ | 20.7 | $ | — | $ | 249.1 | |||||||||||||
Accounts receivable, net | — | — | 1,299.40 | 8.8 | — | 1,308.20 | |||||||||||||||||||
Intercompany receivables, net | 24.3 | — | — | 233.5 | (257.8 | ) | — | ||||||||||||||||||
Other receivables | — | — | 46 | 1.1 | — | 47.1 | |||||||||||||||||||
Other current assets | 0.1 | — | 90.5 | 0.4 | — | 91 | |||||||||||||||||||
Deferred tax assets | — | — | 2.5 | 0.2 | — | 2.7 | |||||||||||||||||||
Income taxes | — | — | 10.1 | 0.6 | — | 10.7 | |||||||||||||||||||
Inventories | — | — | 1,469.40 | 54.5 | — | 1,523.90 | |||||||||||||||||||
Total current assets | 26.1 | — | 3,144.60 | 319.8 | (257.8 | ) | 3,232.70 | ||||||||||||||||||
Non-current assets: | |||||||||||||||||||||||||
Property, plant and equipment, net | — | — | 487.8 | 6.2 | — | 494 | |||||||||||||||||||
Investment in subsidiaries | 2,634.00 | — | 1,559.90 | 1,243.90 | (5,437.8 | ) | — | ||||||||||||||||||
Intercompany receivables, net | — | — | — | 1,098.00 | (1,098.0 | ) | — | ||||||||||||||||||
Other assets | — | — | 116.7 | 3.6 | — | 120.3 | |||||||||||||||||||
Deferred tax assets | — | — | 114.8 | — | — | 114.8 | |||||||||||||||||||
Retirement benefit asset | — | — | 59.8 | — | — | 59.8 | |||||||||||||||||||
Total assets | $ | 2,660.10 | $ | — | $ | 5,483.60 | $ | 2,671.50 | $ | (6,793.6 | ) | $ | 4,021.60 | ||||||||||||
Liabilities and Shareholders’ equity | |||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||
Loans and overdrafts | $ | — | $ | — | $ | 8.8 | $ | — | $ | — | $ | 8.8 | |||||||||||||
Accounts payable | — | — | 162.9 | 0.2 | — | 163.1 | |||||||||||||||||||
Intercompany payables, net | — | — | 257.8 | — | (257.8 | ) | — | ||||||||||||||||||
Accrued expenses and other current liabilities | 16.3 | — | 274.2 | 3.3 | — | 293.8 | |||||||||||||||||||
Deferred revenue | — | — | 174.4 | — | — | 174.4 | |||||||||||||||||||
Deferred tax liabilities | — | — | 123.9 | — | — | 123.9 | |||||||||||||||||||
Income taxes | — | — | 35.7 | (3.5 | ) | — | 32.2 | ||||||||||||||||||
Total current liabilities | 16.3 | — | 1,037.70 | — | (257.8 | ) | 796.2 | ||||||||||||||||||
Non-current liabilities: | |||||||||||||||||||||||||
Intercompany payables, net | — | — | 1,098.00 | — | (1,098.0 | ) | — | ||||||||||||||||||
Deferred tax liabilities | — | — | 2.7 | — | — | 2.7 | |||||||||||||||||||
Other liabilities | — | — | 118.5 | 3.1 | — | 121.6 | |||||||||||||||||||
Deferred revenue | — | — | 457.3 | — | — | 457.3 | |||||||||||||||||||
Total liabilities | 16.3 | — | 2,714.20 | 3.1 | (1,355.8 | ) | 1,377.80 | ||||||||||||||||||
Total shareholders’ equity | 2,643.80 | — | 2,769.40 | 2,668.40 | (5,437.8 | ) | 2,643.80 | ||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 2,660.10 | $ | — | $ | 5,483.60 | $ | 2,671.50 | $ | (6,793.6 | ) | $ | 4,021.60 | ||||||||||||
Condensed Consolidated Balance Sheet | |||||||||||||||||||||||||
February 1, 2014 | |||||||||||||||||||||||||
(in millions) | Signet | Signet UK | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||||
Jewelers | Finance plc | Subsidiaries | Guarantor | ||||||||||||||||||||||
Limited | Subsidiaries | ||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 1.4 | $ | — | $ | 237 | $ | 9.2 | $ | — | $ | 247.6 | |||||||||||||
Accounts receivable, net | — | — | 1,361.30 | 12.7 | — | 1,374.00 | |||||||||||||||||||
Intercompany receivables, net | 47.7 | — | — | 238 | (285.7 | ) | — | ||||||||||||||||||
Other receivables | — | — | 51.1 | 0.4 | — | 51.5 | |||||||||||||||||||
Other current assets | — | — | 86.5 | 0.5 | — | 87 | |||||||||||||||||||
Deferred tax assets | — | — | 2.8 | 0.2 | — | 3 | |||||||||||||||||||
Income taxes | — | — | 6 | 0.5 | — | 6.5 | |||||||||||||||||||
Inventories | — | — | 1,434.50 | 53.5 | — | 1,488.00 | |||||||||||||||||||
Total current assets | 49.1 | — | 3,179.20 | 315 | (285.7 | ) | 3,257.60 | ||||||||||||||||||
Non-current assets: | |||||||||||||||||||||||||
Property, plant and equipment, net | — | — | 481.5 | 6.1 | — | 487.6 | |||||||||||||||||||
Investment in subsidiaries | 2,526.30 | — | 1,452.80 | 1,143.20 | (5,122.3 | ) | — | ||||||||||||||||||
Intercompany receivables, net | — | — | — | 1,098.00 | (1,098.0 | ) | — | ||||||||||||||||||
Other assets | — | — | 110.4 | 3.6 | — | 114 | |||||||||||||||||||
Deferred tax assets | — | — | 113.6 | 0.1 | — | 113.7 | |||||||||||||||||||
Retirement benefit asset | — | — | 56.3 | — | — | 56.3 | |||||||||||||||||||
Total assets | $ | 2,575.40 | $ | — | $ | 5,393.80 | $ | 2,566.00 | $ | (6,506.0 | ) | $ | 4,029.20 | ||||||||||||
Liabilities and Shareholders’ equity | |||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||
Loans and overdrafts | $ | — | $ | — | $ | 19.3 | $ | — | $ | — | $ | 19.3 | |||||||||||||
Accounts payable | — | — | 160.5 | 2.4 | — | 162.9 | |||||||||||||||||||
Intercompany payables, net | — | — | 285.7 | — | (285.7 | ) | — | ||||||||||||||||||
Accrued expenses and other current liabilities | 12.3 | — | 313.1 | 3.1 | — | 328.5 | |||||||||||||||||||
Deferred revenue | — | — | 173 | — | — | 173 | |||||||||||||||||||
Deferred tax liabilities | — | — | 113.1 | — | — | 113.1 | |||||||||||||||||||
Income taxes | — | — | 101.3 | 2.6 | — | 103.9 | |||||||||||||||||||
Total current liabilities | 12.3 | — | 1,166.00 | 8.1 | (285.7 | ) | 900.7 | ||||||||||||||||||
Non-current liabilities: | |||||||||||||||||||||||||
Intercompany payables, net | — | — | 1,098.00 | — | (1,098.0 | ) | — | ||||||||||||||||||
Other liabilities | — | — | 118.5 | 3.2 | — | 121.7 | |||||||||||||||||||
Deferred revenue | — | — | 443.7 | — | — | 443.7 | |||||||||||||||||||
Total liabilities | 12.3 | — | 2,826.20 | 11.3 | (1,383.7 | ) | 1,466.10 | ||||||||||||||||||
Total shareholders’ equity | 2,563.10 | — | 2,567.60 | 2,554.70 | (5,122.3 | ) | 2,563.10 | ||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 2,575.40 | $ | — | $ | 5,393.80 | $ | 2,566.00 | $ | (6,506.0 | ) | $ | 4,029.20 | ||||||||||||
Condensed Consolidated Balance Sheet | |||||||||||||||||||||||||
May 4, 2013 | |||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
(in millions) | Signet | Signet UK | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||||
Jewelers | Finance plc | Subsidiaries | Guarantor | ||||||||||||||||||||||
Limited | Subsidiaries | ||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 9.4 | $ | — | $ | 225 | $ | 29.3 | $ | — | $ | 263.7 | |||||||||||||
Accounts receivable, net | — | — | 1,149.60 | 7.9 | — | 1,157.50 | |||||||||||||||||||
Intercompany receivables, net | 26.6 | — | — | 710.1 | (736.7 | ) | — | ||||||||||||||||||
Other receivables | — | — | 40.1 | 0.1 | — | 40.2 | |||||||||||||||||||
Other current assets | 0.1 | — | 81.8 | (0.1 | ) | — | 81.8 | ||||||||||||||||||
Deferred tax assets | — | — | 2 | 0.3 | — | 2.3 | |||||||||||||||||||
Income taxes | — | — | 10.1 | — | — | 10.1 | |||||||||||||||||||
Inventories | — | — | 1,388.70 | 37.7 | — | 1,426.40 | |||||||||||||||||||
Total current assets | 36.1 | — | 2,897.30 | 785.3 | (736.7 | ) | 2,982.00 | ||||||||||||||||||
Non-current assets: | |||||||||||||||||||||||||
Property, plant and equipment, net | — | — | 429.3 | 0.6 | — | 429.9 | |||||||||||||||||||
Investment in subsidiaries | 2,320.60 | — | 1,398.20 | 1,101.50 | (4,820.3 | ) | — | ||||||||||||||||||
Intercompany receivables, net | — | — | — | 600 | (600.0 | ) | — | ||||||||||||||||||
Other assets | — | — | 107.2 | — | — | 107.2 | |||||||||||||||||||
Deferred tax assets | — | — | 124.9 | — | — | 124.9 | |||||||||||||||||||
Retirement benefit asset | — | — | 50.3 | — | — | 50.3 | |||||||||||||||||||
Total assets | $ | 2,356.70 | $ | — | $ | 5,007.20 | $ | 2,487.40 | $ | (6,157.0 | ) | $ | 3,694.30 | ||||||||||||
Liabilities and Shareholders’ equity | |||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||
Loans and overdrafts | $ | — | $ | — | $ | 5.7 | $ | — | $ | — | $ | 5.7 | |||||||||||||
Accounts payable | — | — | 176.4 | 0.4 | — | 176.8 | |||||||||||||||||||
Intercompany payables, net | — | — | 736.7 | — | (736.7 | ) | — | ||||||||||||||||||
Accrued expenses and other current liabilities | 12.2 | — | 253.5 | 3.7 | — | 269.4 | |||||||||||||||||||
Deferred revenue | — | — | 157.6 | — | — | 157.6 | |||||||||||||||||||
Deferred tax liabilities | — | — | 145.6 | — | — | 145.6 | |||||||||||||||||||
Income taxes | — | — | 63.2 | 1.3 | — | 64.5 | |||||||||||||||||||
Total current liabilities | 12.2 | — | 1,538.70 | 5.4 | (736.7 | ) | 819.6 | ||||||||||||||||||
Non-current liabilities: | |||||||||||||||||||||||||
Intercompany payables, net | — | — | 600 | — | (600.0 | ) | — | ||||||||||||||||||
Deferred tax liabilities | — | 1 | — | — | 1 | ||||||||||||||||||||
Other liabilities | — | — | 108.2 | 5.1 | — | 113.3 | |||||||||||||||||||
Deferred revenue | — | — | 415.9 | — | — | 415.9 | |||||||||||||||||||
Total liabilities | 12.2 | — | 2,663.80 | 10.5 | (1,336.7 | ) | 1,349.80 | ||||||||||||||||||
Total shareholders’ equity | 2,344.50 | — | 2,343.40 | 2,476.90 | (4,820.3 | ) | 2,344.50 | ||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 2,356.70 | $ | — | $ | 5,007.20 | $ | 2,487.40 | $ | (6,157.0 | ) | $ | 3,694.30 | ||||||||||||
Condensed Consolidated Statement of Cash Flows | |||||||||||||||||||||||||
For the 13 week period ended May 3, 2014 | |||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
(in millions) | Signet | Signet UK | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||||
Jewelers | Finance plc | Subsidiaries | Guarantor | ||||||||||||||||||||||
Limited | Subsidiaries | ||||||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||||||
Other cash (used in) provided by operating activities | $ | (0.5 | ) | $ | — | $ | 62.4 | $ | 11.6 | $ | — | $ | 73.5 | ||||||||||||
Net cash (used in) provided by operating activities | (0.5 | ) | — | 62.4 | 11.6 | — | 73.5 | ||||||||||||||||||
Investing activities | |||||||||||||||||||||||||
Purchase of property, plant and equipment | — | — | (27.8 | ) | (0.3 | ) | — | (28.1 | ) | ||||||||||||||||
Net cash used in investing activities | — | — | (27.8 | ) | (0.3 | ) | — | (28.1 | ) | ||||||||||||||||
Financing activities | |||||||||||||||||||||||||
Dividends paid | (12.0 | ) | — | — | — | — | (12.0 | ) | |||||||||||||||||
Intercompany dividends paid | — | — | 1.1 | (1.1 | ) | — | — | ||||||||||||||||||
Proceeds from issuance of common shares | 1 | — | — | — | — | 1 | |||||||||||||||||||
Excess tax benefit from exercise of share awards | — | — | 7.7 | — | — | 7.7 | |||||||||||||||||||
Repurchase of common shares | (11.4 | ) | — | — | — | — | (11.4 | ) | |||||||||||||||||
Net settlement of equity based awards | (15.3 | ) | — | — | — | — | (15.3 | ) | |||||||||||||||||
Payment of debt issuance costs | — | — | (3.0 | ) | — | — | (3.0 | ) | |||||||||||||||||
Repayment of short-term borrowings | — | — | (10.5 | ) | — | — | (10.5 | ) | |||||||||||||||||
Intercompany activity, net | 38.5 | — | (42.4 | ) | 3.9 | — | — | ||||||||||||||||||
Net cash provided by (used in) financing activities | 0.8 | — | (47.1 | ) | 2.8 | — | (43.5 | ) | |||||||||||||||||
Cash and cash equivalents at beginning of period | 1.4 | — | 237 | 9.2 | — | 247.6 | |||||||||||||||||||
Increase (decrease) in cash and cash equivalents | 0.3 | — | (12.5 | ) | 14.1 | — | 1.9 | ||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | 2.2 | (2.6 | ) | — | (0.4 | ) | |||||||||||||||||
Cash and cash equivalents at end of period | $ | 1.7 | $ | — | $ | 226.7 | $ | 20.7 | $ | — | $ | 249.1 | |||||||||||||
Condensed Consolidated Statement of Cash Flows | |||||||||||||||||||||||||
For the 13 week period ended May 4, 2013 | |||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
(in millions) | Signet | Signet UK | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||||
Jewelers | Finance plc | Subsidiaries | Guarantor | ||||||||||||||||||||||
Limited | Subsidiaries | ||||||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||||||
Other cash provided by operating activities | $ | 39.5 | $ | — | $ | 31.1 | $ | 14.5 | $ | (40.0 | ) | $ | 45.1 | ||||||||||||
Net cash provided by operating activities | 39.5 | — | 31.1 | 14.5 | (40.0 | ) | $ | 45.1 | |||||||||||||||||
Investing activities | |||||||||||||||||||||||||
Purchase of property, plant and equipment | — | — | (23.2 | ) | — | — | (23.2 | ) | |||||||||||||||||
Net cash used in investing activities | — | — | (23.2 | ) | — | — | (23.2 | ) | |||||||||||||||||
Financing activities | |||||||||||||||||||||||||
Dividends paid | (9.8 | ) | — | — | — | — | (9.8 | ) | |||||||||||||||||
Intercompany dividends paid | — | — | (33.3 | ) | (6.7 | ) | 40 | — | |||||||||||||||||
Proceeds from issuance of common shares | 5 | — | — | — | — | 5 | |||||||||||||||||||
Repurchase of common shares | (50.1 | ) | — | — | — | — | (50.1 | ) | |||||||||||||||||
Net settlement of equity based awards | (9.1 | ) | — | — | — | — | (9.1 | ) | |||||||||||||||||
Proceeds from short-term borrowings | — | — | 5.7 | — | — | 5.7 | |||||||||||||||||||
Intercompany activity, net | 20.5 | — | (25.2 | ) | 4.7 | — | — | ||||||||||||||||||
Net cash used in financing activities | (43.5 | ) | — | (52.8 | ) | (2.0 | ) | 40 | (58.3 | ) | |||||||||||||||
Cash and cash equivalents at beginning of period | 13.4 | — | 271.3 | 16.3 | — | 301 | |||||||||||||||||||
(Decrease) increase in cash and cash equivalents | (4.0 | ) | — | (44.9 | ) | 12.5 | — | (36.4 | ) | ||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (1.4 | ) | 0.5 | — | (0.9 | ) | |||||||||||||||||
Cash and cash equivalents at end of period | $ | 9.4 | $ | — | $ | 225 | $ | 29.3 | $ | — | $ | 263.7 | |||||||||||||
Recovered_Sheet1
Principal Accounting Policies and Basis of Preparation - Additional Information (Detail) | 3 Months Ended |
3-May-14 | |
Segment | |
Principal Accounting Policies and Basis of Preparation [Line Items] | ' |
Number of reportable segments | 2 |
Approximate percentage of first quarter sales to annual sales | 'Slightly more than 20% |
Approximate percentage of second quarter sales to annual sales | 'Slightly more than 20% |
Approximate percentage of third quarter sales to annual sales | 'Little under 20% |
Approximate percentage of fourth quarter sales to annual sales | 40.00% |
Minimum | ' |
Principal Accounting Policies and Basis of Preparation [Line Items] | ' |
Approximate percentage of operating income in fourth quarter | 45.00% |
Maximum | ' |
Principal Accounting Policies and Basis of Preparation [Line Items] | ' |
Approximate percentage of operating income in fourth quarter | 50.00% |
US | Minimum | ' |
Principal Accounting Policies and Basis of Preparation [Line Items] | ' |
Approximate percentage of operating income in fourth quarter | 40.00% |
US | Maximum | ' |
Principal Accounting Policies and Basis of Preparation [Line Items] | ' |
Approximate percentage of operating income in fourth quarter | 50.00% |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 3 Months Ended |
3-May-14 | |
Segment | |
Segment Reporting Information [Line Items] | ' |
Number of geographic operating segments managed | 2 |
Segment_Reporting_Information_
Segment Reporting Information, by Segment (Detail) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | 3-May-14 | 4-May-13 | Feb. 01, 2014 | |
Segment Reporting Information [Line Items] | ' | ' | ' | |
Total sales | $1,056.10 | $993.60 | ' | |
Total operating income | 150.7 | 142.8 | ' | |
Total assets | 4,021.60 | 3,694.30 | 4,029.20 | |
US | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | |
Total sales | 903.5 | 857.2 | ' | |
Total operating income | 166.3 | 152.8 | ' | |
Total assets | 3,263.80 | 3,017 | 3,311 | |
UK | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | |
Total sales | 151.7 | 135 | ' | |
Total operating income | ' | -4.1 | ' | |
Total assets | 493.2 | 441.7 | 484.6 | |
Other | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | |
Total sales | 0.9 | 1.4 | ' | |
Total operating income | -15.6 | [1] | -5.9 | ' |
Total assets | $264.60 | $235.60 | $233.60 | |
[1] | Fiscal 2015 balance includes $8.4 million of acquisition related costs, see Note 19 for additional information. |
Segment_Reporting_Information_1
Segment Reporting Information, by Segment (Parenthetical) (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | 3-May-14 |
Segment Reporting Information [Line Items] | ' |
Acquisition related costs | $8.40 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3-May-14 | Feb. 01, 2014 | 3-May-14 | 3-May-14 |
In Millions, unless otherwise specified | US | UK | ||
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Tax years subject to examination | ' | ' | 'Tax years ending after November 1, 2008 | 'Tax years ending after January 31, 2012 |
Unrecognized tax benefits | $0 | $4.60 | ' | ' |
Accrued interest related to unrecognized tax benefits | $0 | $0.30 | ' | ' |
Earnings_Per_Share_Basic_And_D
Earnings Per Share, Basic And Diluted (Detail) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | 3-May-14 | 4-May-13 |
Earnings Per Share [Abstract] | ' | ' |
Net income | $96.60 | $91.80 |
Basic weighted average number of shares outstanding | 79.9 | 80.8 |
Dilutive effect of share awards | 0.4 | 0.5 |
Diluted weighted average number of shares outstanding | 80.3 | 81.3 |
Earnings per share - basic | $1.21 | $1.14 |
Earnings per share - diluted | $1.20 | $1.13 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 3 Months Ended | |
3-May-14 | 4-May-13 | |
Earnings Per Share [Abstract] | ' | ' |
Effect of treasury shares and non-vested restricted stock excluded from basic weighted average number of shares outstanding | 7,272,616 | 6,365,336 |
Anti-dilutive shares excluded from the calculation of earnings per share | 0 | 105,771 |
Share_Repurchase_Activity_Deta
Share Repurchase Activity (Detail) (USD $) | 3 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | |||||||
In Millions, except Share data, unless otherwise specified | 3-May-14 | 4-May-13 | Jun. 30, 2013 | 3-May-14 | 4-May-13 | Oct. 31, 2011 | 3-May-14 | 4-May-13 | ||||
2013 Program | 2013 Program | 2013 Program | 2011 Program | 2011 Program | 2011 Program | |||||||
Equity, Class of Treasury Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Amount Authorized | ' | ' | $350 | $350 | [1] | ' | $300 | $350 | [2] | ' | ||
Shares repurchased | 126,468 | 749,245 | ' | 126,468 | [1] | ' | [1],[3] | ' | ' | [2],[3] | 749,245 | [2] |
Amount repurchased | $12.90 | $50.10 | ' | $12.90 | [1],[4] | ' | [1],[3] | ' | ' | [2],[3] | $50.10 | [2] |
Average repurchase price | $102.10 | $66.92 | ' | $102.10 | [1] | ' | [1],[3] | ' | ' | [2],[3] | $66.92 | [2] |
[1] | In June 2013, the Board authorized the repurchase of up to $350 million of Signet's common shares (the "2013 Program"). The 2013 Program may be suspended or discontinued at any time without notice. The 2013 Program had $282.5 million remaining as of May 3, 2014. | |||||||||||
[2] | In October 2011, the Board authorized the repurchase of up to $300 million of Signet's common shares (the "2011 Program"), which authorization was subsequently increased to $350 million. The 2011 Program was completed as of May 4, 2013. | |||||||||||
[3] | Not applicable. | |||||||||||
[4] | As of May 3, 2014, $11.4 million has been paid to repurchase common shares and $1.5 million has been recorded in accrued expenses and other current liabilities in the consolidated balance sheets reflecting shares repurchased but not yet settled and paid for by the end of the first quarter. |
Share_Repurchase_Activity_Pare
Share Repurchase Activity (Parenthetical) (Detail) (USD $) | 3 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | ||||
In Millions, unless otherwise specified | 3-May-14 | 4-May-13 | Jun. 30, 2013 | 3-May-14 | 3-May-14 | Oct. 31, 2011 | 3-May-14 | ||
2013 Program | 2013 Program | 2013 Program | 2011 Program | 2011 Program | |||||
Accrued Expenses and Other Current Liabilities | |||||||||
Equity, Class of Treasury Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ||
Stock repurchase program, authorized amount | ' | ' | $350 | $350 | [1] | ' | $300 | $350 | [2] |
Stock repurchase program, remaining available amount | ' | ' | ' | 282.5 | ' | ' | ' | ||
Repurchase of common shares | 11.4 | 50.1 | ' | 11.4 | ' | ' | ' | ||
Shares repurchased but not yet settled and paid | ' | ' | ' | ' | $1.50 | ' | ' | ||
[1] | In June 2013, the Board authorized the repurchase of up to $350 million of Signet's common shares (the "2013 Program"). The 2013 Program may be suspended or discontinued at any time without notice. The 2013 Program had $282.5 million remaining as of May 3, 2014. | ||||||||
[2] | In October 2011, the Board authorized the repurchase of up to $300 million of Signet's common shares (the "2011 Program"), which authorization was subsequently increased to $350 million. The 2011 Program was completed as of May 4, 2013. |
Payment_Of_Dividends_Detail
Payment Of Dividends (Detail) (USD $) | 3 Months Ended | ||||
In Millions, except Per Share data, unless otherwise specified | 3-May-14 | Feb. 01, 2014 | 4-May-13 | ||
Dividends, Cash [Abstract] | ' | ' | ' | ||
Cash dividend per share | $0.18 | $0.15 | $0.15 | ||
First Quarter Dividend | ' | ' | ' | ||
Dividends, Cash [Abstract] | ' | ' | ' | ||
Cash dividend per share | $0.18 | [1] | ' | $0.15 | [1] |
Total dividends | $14.40 | [1],[2] | ' | $12.10 | [1] |
[1] | Signet's dividend policy results in the dividend payment date being a quarter in arrears from the declaration date. As a result, the fourth quarter Fiscal 2014 $0.15 per share cash dividend was paid on February 27, 2014 in the aggregate amount of $12.0 million. | ||||
[2] | As of May 3, 2014, $14.4 million has been recorded in accrued expenses and other current liabilities in the consolidated balance sheets reflecting the cash dividend declared for the first quarter of Fiscal 2015, which has a record date of May 2, 2014 and a payment date of May 28, 2014. |
Payment_Of_Dividends_Parenthet
Payment Of Dividends (Parenthetical) (Detail) (USD $) | 1 Months Ended | 3 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Feb. 27, 2014 | 3-May-14 | Feb. 01, 2014 | 4-May-13 |
Dividends, Cash [Abstract] | ' | ' | ' | ' |
Dividend paid | $12 | $12 | ' | $9.80 |
Dividend declared | ' | $0.18 | $0.15 | $0.15 |
Other current liabilities reflecting dividend | ' | $14.40 | ' | ' |
Dividend record date | ' | 2-May-14 | ' | ' |
Dividend payment date | ' | 28-May-14 | ' | ' |
Changes_in_Accumulated_OCI_by_
Changes in Accumulated OCI by Component and Reclassifications Out of Accumulated OCI (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | 3-May-14 | 4-May-13 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Beginning balance | ($178.50) | ' |
OCI before reclassifications | 9.9 | ' |
Amounts reclassified from accumulated OCI | 4.8 | -0.5 |
After-tax amount, Total other comprehensive income (loss) | 14.7 | -13.7 |
Ending balance | -163.8 | -189.4 |
Foreign currency translation | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Beginning balance | -137 | ' |
OCI before reclassifications | 9.6 | ' |
After-tax amount, Total other comprehensive income (loss) | 9.6 | ' |
Ending balance | -127.4 | ' |
Gains (losses) on cash flow hedges | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Beginning balance | -14.3 | ' |
OCI before reclassifications | 0.3 | ' |
Amounts reclassified from accumulated OCI | 4.7 | ' |
After-tax amount, Total other comprehensive income (loss) | 5 | ' |
Ending balance | -9.3 | ' |
Pension Plans | Accumulated Defined Benefit Plans Adjustment Actuarial Net Gain Loss | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Beginning balance | -42.5 | ' |
Amounts reclassified from accumulated OCI | 0.4 | ' |
After-tax amount, Total other comprehensive income (loss) | 0.4 | ' |
Ending balance | -42.1 | ' |
Pension Plans | Accumulated Defined Benefit Plans Adjustment, Net Prior Service Cost (Credit) | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Beginning balance | 15.3 | ' |
Amounts reclassified from accumulated OCI | -0.3 | ' |
After-tax amount, Total other comprehensive income (loss) | -0.3 | ' |
Ending balance | $15 | ' |
Reclassification_Activity_by_I
Reclassification Activity by Individual Accumulated OCI Component (Detail) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | 3-May-14 | 4-May-13 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
(Gains) losses on cash flow hedges reclassification, before tax | $7.40 | ($1) | ||
(Gains) losses on cash flow hedges reclassification, tax expense | -2.7 | 0.4 | ||
(Gains) losses on cash flow hedges reclassification, net of tax | 4.7 | -0.6 | ||
Defined benefit plan reclassification, before tax | 0.1 | 0.2 | ||
Defined benefit plan reclassification, tax expense | ' | -0.1 | ||
Defined benefit plan reclassification, net of tax | 0.1 | 0.1 | ||
Total reclassifications, net of tax | 4.8 | -0.5 | ||
Cash Flow Hedging | Foreign Exchange Contract | Cost of Sales | ' | ' | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
(Gains) losses on cash flow hedges reclassification, before tax | ' | -0.2 | ||
Cash Flow Hedging | Commodity Contract | Cost of Sales | ' | ' | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
(Gains) losses on cash flow hedges reclassification, before tax | 7.4 | -0.8 | ||
Prior Service Credit | Selling, General and Administrative Expenses | ' | ' | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Defined benefit plan reclassification, before tax | -0.4 | [1] | -0.4 | [1] |
Pension Plan Actuarial (Losses)/Gains | Selling, General and Administrative Expenses | ' | ' | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Defined benefit plan reclassification, before tax | $0.50 | [1] | $0.60 | [1] |
[1] | These items are included in the computation of net periodic pension benefit (cost). See Note 14 for additional information. |
Accounts_Receivable_net_Additi
Accounts Receivable, net - Additional Information (Detail) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | 3-May-14 | 3-May-14 | Feb. 01, 2014 | 4-May-13 |
Other Accounts Receivable | Other Accounts Receivable | Other Accounts Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Percentage allowance on losses | 100.00% | ' | ' | ' |
Losses allowance maturity period | '90 days | ' | ' | ' |
Finance receivable age | '90 days | ' | ' | ' |
Gross accounts receivable | ' | $12.20 | $12.80 | $10.60 |
Valuation of allowance | ' | $0.30 | $0.30 | $0.40 |
Accounts_Receivable_by_Portfol
Accounts Receivable by Portfolio Segment, Net (Detail) (USD $) | 3-May-14 | Feb. 01, 2014 | 4-May-13 |
In Millions, unless otherwise specified | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Total accounts receivable, net | $1,308.20 | $1,374 | $1,157.50 |
US Customer In-House Finance Receivables | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Total accounts receivable, net | 1,294.80 | 1,356 | 1,145.90 |
Other Accounts Receivable | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Total accounts receivable, net | $13.40 | $18 | $11.60 |
Allowance_for_Credit_Losses_On
Allowance for Credit Losses On US Customer In-House Finance Receivables (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | 3-May-14 | 4-May-13 | Feb. 01, 2014 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' |
Accounts receivable, net | $1,308.20 | $1,157.50 | $1,374 |
US Customer In-House Finance Receivables | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' |
Beginning balance | -97.8 | -87.7 | -87.7 |
Charge-offs | 32.3 | 29.4 | 128.2 |
Recoveries | 8.5 | 7.4 | 26 |
Provision | -30.8 | -28.7 | -164.3 |
Ending balance | -87.8 | -79.6 | -97.8 |
Ending receivable balance evaluated for impairment | 1,382.60 | 1,225.50 | 1,453.80 |
Accounts receivable, net | $1,294.80 | $1,145.90 | $1,356 |
Credit_Quality_Indicator_and_A
Credit Quality Indicator and Age Analysis of Past Due US Customer In-House Finance Receivables (Detail) (US Customer In-House Finance Receivables, USD $) | 3-May-14 | Feb. 01, 2014 | 4-May-13 | Feb. 02, 2013 |
In Millions, unless otherwise specified | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' |
Gross, Value | $1,382.60 | $1,453.80 | $1,225.50 | ' |
Valuation Allowance, Value | -87.8 | -97.8 | -79.6 | -87.7 |
Gross, Percentage | 100.00% | 100.00% | 100.00% | ' |
Valuation Allowance, Percentage | 6.40% | 6.70% | 6.50% | ' |
Performing Financing Receivable | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' |
Gross, Percentage | 96.70% | 96.30% | 96.50% | ' |
Valuation Allowance, Percentage | 3.10% | 3.20% | 3.20% | ' |
Performing Financing Receivable | Current | Aged 0-30 Days | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' |
Gross, Value | 1,130.80 | 1,170.40 | 999.1 | ' |
Valuation Allowance, Value | -34.4 | -36.3 | -30.5 | ' |
Performing Financing Receivable | Past Due | Aged 31 - 90 Days | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' |
Gross, Value | 205.6 | 229.9 | 183.9 | ' |
Valuation Allowance, Value | -7.2 | -8 | -6.6 | ' |
Nonperforming Financing Receivable | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' |
Gross, Percentage | 3.30% | 3.70% | 3.50% | ' |
Valuation Allowance, Percentage | 100.00% | 100.00% | 100.00% | ' |
Nonperforming Financing Receivable | Past Due | Aged More Than 90 Days | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' |
Gross, Value | 46.2 | 53.5 | 42.5 | ' |
Valuation Allowance, Value | ($46.20) | ($53.50) | ($42.50) | ' |
Inventories_Detail
Inventories (Detail) (USD $) | 3-May-14 | Feb. 01, 2014 | 4-May-13 |
In Millions, unless otherwise specified | |||
Inventories | ' | ' | ' |
Raw materials | $38 | $41.80 | $36.40 |
Finished goods | 1,485.90 | 1,446.20 | 1,390 |
Inventories | $1,523.90 | $1,488 | $1,426.40 |
Other_Assets_Detail
Other Assets (Detail) (USD $) | 3-May-14 | Feb. 01, 2014 | 4-May-13 | Feb. 02, 2013 |
In Millions, unless otherwise specified | ||||
Other Assets | ' | ' | ' | ' |
Deferred extended service plan costs | $63.60 | $61.90 | $58.60 | ' |
Goodwill | 26.8 | 26.8 | 24.6 | 24.6 |
Other assets | 29.9 | 25.3 | 24 | ' |
Total other assets | $120.30 | $114 | $107.20 | ' |
Other_Assets_Additional_Inform
Other Assets - Additional Information (Detail) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | 3-May-14 | 4-May-13 | Feb. 01, 2014 |
Other Assets [Line Items] | ' | ' | ' |
Current portion of deferred direct costs | $22.50 | $20.80 | $21.90 |
Goodwill impairment losses | $0 | $0 | ' |
Summary_of_Goodwill_by_Reporti
Summary of Goodwill by Reporting Unit (Detail) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Feb. 01, 2014 | 3-May-14 | 4-May-13 | |
Goodwill [Line Items] | ' | ' | ' | |
Beginning balance | $24.60 | $26.80 | $24.60 | |
Acquisition | 2.2 | [1] | ' | ' |
Ending balance | 26.8 | 26.8 | 24.6 | |
US | ' | ' | ' | |
Goodwill [Line Items] | ' | ' | ' | |
Beginning balance | 24.6 | 23.2 | ' | |
Acquisition | -1.4 | [1] | ' | ' |
Ending balance | 23.2 | 23.2 | ' | |
Other | ' | ' | ' | |
Goodwill [Line Items] | ' | ' | ' | |
Beginning balance | ' | 3.6 | ' | |
Acquisition | 3.6 | [1] | ' | ' |
Ending balance | $3.60 | $3.60 | ' | |
[1] | See Note 18 for additional discussion of the goodwill recorded by the Company during Fiscal 2014. |
Deferred_Revenue_Detail
Deferred Revenue (Detail) (USD $) | 3-May-14 | Feb. 01, 2014 | 4-May-13 | Feb. 02, 2013 |
In Millions, unless otherwise specified | ||||
Deferred Revenue Arrangement [Line Items] | ' | ' | ' | ' |
ESP deferred revenue | $619.60 | $601.20 | $563.40 | $549.70 |
Voucher promotions and other | 12.1 | 15.5 | 10.1 | ' |
Total deferred revenue | 631.7 | 616.7 | 573.5 | ' |
Deferred revenue, current liabilities | 174.4 | 173 | 157.6 | ' |
Deferred revenue, non-current liabilities | 457.3 | 443.7 | 415.9 | ' |
Total deferred revenue | $631.70 | $616.70 | $573.50 | ' |
Warranty_Deferred_Revenue_Deta
Warranty Deferred Revenue (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | 3-May-14 | 4-May-13 |
Deferred Revenue [Line Items] | ' | ' |
ESP deferred revenue, beginning of period | $601.20 | $549.70 |
Plans sold | 64.2 | 55.3 |
Revenue recognized | -45.8 | -41.6 |
ESP deferred revenue, end of period | $619.60 | $563.40 |
Warranty_Reserves_Detail
Warranty Reserves (Detail) (Warranty Reserves, USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | 3-May-14 | 4-May-13 | Feb. 01, 2014 |
Warranty Reserves | ' | ' | ' |
Product Warranty Accrual, Balance Sheet Classification [Abstract] | ' | ' | ' |
Warranty reserve, beginning of period: | $19.10 | $18.50 | $18.50 |
Warranty expense | 1.7 | 1.6 | 7.4 |
Utilized | -1.4 | -1.5 | -6.8 |
Warranty reserve, end of period | 19.4 | 18.6 | 19.1 |
Current liabilities | 6.7 | 6.8 | 6.7 |
Non-current liabilities | 12.7 | 11.8 | 12.4 |
Total warranty reserve | $19.40 | $18.60 | $19.10 |
Recovered_Sheet2
Financial Instruments and Fair Value - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | 3-May-14 | 4-May-13 | Feb. 01, 2014 |
Financial Instruments and Fair Value [Line Items] | ' | ' | ' |
Amount of agreement in place for senior unsecured multi-currency five-year revolving credit external funding | $400 | ' | ' |
Borrowings on unsecured senior revolving credit agreement | 0 | 0 | 0 |
Maximum | ' | ' | ' |
Financial Instruments and Fair Value [Line Items] | ' | ' | ' |
Contracts maturity period | '12 months | ' | ' |
Foreign Exchange Contract | ' | ' | ' |
Financial Instruments and Fair Value [Line Items] | ' | ' | ' |
Cash flow hedges settlement period | 'These contracts have been designated as cash flow hedges and will be settled over the next 12 months (February 1, 2014 and May 4, 2013 12 months and 14 months, respectively). | ' | ' |
Foreign Exchange Contract | Not Designated as Hedging Instrument | ' | ' | ' |
Financial Instruments and Fair Value [Line Items] | ' | ' | ' |
Total notional amount | 39.7 | 53.8 | 22.1 |
Commodity Contract | ' | ' | ' |
Financial Instruments and Fair Value [Line Items] | ' | ' | ' |
Cash flow hedges settlement period | 'These contracts have been designated as cash flow hedges and will be settled over the next 10 months (February 1, 2014 and May 4, 2013 12 months and 9 months, respectively). | ' | ' |
Interest Rate Risk | ' | ' | ' |
Financial Instruments and Fair Value [Line Items] | ' | ' | ' |
Total notional amount | 0 | 0 | 0 |
Cash Flow Hedging | ' | ' | ' |
Financial Instruments and Fair Value [Line Items] | ' | ' | ' |
Derivative losses to be reclassified out of AOCI in the next 12 months | 11.9 | ' | ' |
Derivative losses to be reclassified out of AOCI in the remainder of Fiscal 2015 | 11.2 | ' | ' |
Cash Flow Hedging | Foreign Exchange Contract | ' | ' | ' |
Financial Instruments and Fair Value [Line Items] | ' | ' | ' |
Total notional amount | 40.4 | 43.7 | 42.3 |
Contracts maturity period | '12 months | '14 months | '12 months |
Cash Flow Hedging | Commodity Contract | ' | ' | ' |
Financial Instruments and Fair Value [Line Items] | ' | ' | ' |
Total notional amount | 49.6 | 69.2 | 63 |
Contracts maturity period | '10 months | '9 months | '12 months |
Revolving Credit Facility | ' | ' | ' |
Financial Instruments and Fair Value [Line Items] | ' | ' | ' |
Amount of agreement in place for senior unsecured multi-currency five-year revolving credit external funding | $400 | ' | ' |
Debt instrument, maturity period | '5 years | ' | ' |
Debt instrument, maturity date | 'May 2016 | ' | ' |
Fair_Value_and_Presentation_of
Fair Value and Presentation of Derivative Instruments In Condensed Consolidated Balance Sheets (Detail) (USD $) | 3-May-14 | Feb. 01, 2014 | 4-May-13 |
In Millions, unless otherwise specified | |||
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Total derivative assets | $1.40 | $1 | $4.10 |
Total derivative liabilities | -3 | -2.9 | -0.5 |
Designated as Hedging Instrument | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Total derivative assets | 1.4 | 0.8 | 4.1 |
Total derivative liabilities | -2.8 | -2.9 | -0.3 |
Designated as Hedging Instrument | Other Current Liabilities | Foreign Exchange Contract | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Total derivative liabilities | -2.6 | -2.1 | -0.1 |
Designated as Hedging Instrument | Other Current Liabilities | Commodity Contract | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Total derivative liabilities | -0.2 | -0.8 | -0.2 |
Designated as Hedging Instrument | Other Current Assets | Foreign Exchange Contract | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Total derivative assets | ' | ' | 1.1 |
Designated as Hedging Instrument | Other Current Assets | Commodity Contract | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Total derivative assets | 1.4 | 0.8 | 3 |
Not Designated as Hedging Instrument | Other Current Liabilities | Foreign Exchange Contract | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Total derivative liabilities | -0.2 | ' | -0.2 |
Not Designated as Hedging Instrument | Other Current Assets | Foreign Exchange Contract | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Total derivative assets | ' | $0.20 | ' |
Summary_of_PreTax_Gains_Losses
Summary of Pre-Tax Gains (Losses) Recorded In Accumulated OCI for Derivatives (Detail) (Cash Flow Hedging, USD $) | 3-May-14 | Feb. 01, 2014 | 4-May-13 | Feb. 02, 2013 | |||
In Millions, unless otherwise specified | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | |||
Pre-tax gains (losses) recorded in accumulated OCI | ($13) | ($21.10) | ($17.70) | ' | |||
Foreign Exchange Contract | ' | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | |||
Pre-tax gains (losses) recorded in accumulated OCI | -3.6 | -2.3 | 1.6 | 1.3 | |||
Commodity Contract | ' | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | |||
Pre-tax gains (losses) recorded in accumulated OCI | ($9.40) | [1] | ($18.80) | [1] | ($19.30) | [1] | ($0.50) |
[1] | As of May 3, 2014, losses include $11.1 million related to commodity contracts terminated prior to contract maturity that occurred in Fiscal 2014 (February 1, 2014 and May 4, 2013: $18.2 million and $22.0 million, respectively). |
Summary_of_PreTax_Gains_Losses1
Summary of Pre-Tax Gains (Losses) Recorded In Accumulated OCI for Derivatives (Parenthetical) (Detail) (Cash Flow Hedging, Commodity Contract, USD $) | 3-May-14 | Feb. 01, 2014 | 4-May-13 |
In Millions, unless otherwise specified | |||
Cash Flow Hedging | Commodity Contract | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Accumulated other comprehensive losses before tax related to net terminated contracts | $11.10 | $18.20 | $22 |
Effect_of_Derivative_Instrumen
Effect of Derivative Instruments Designated as Cash Flow Hedges (Detail) (USD $) | 3 Months Ended | 3 Months Ended | ||||||||||||||||
In Millions, unless otherwise specified | 3-May-14 | 4-May-13 | 3-May-14 | 4-May-13 | 3-May-14 | 4-May-13 | 3-May-14 | Feb. 01, 2014 | 4-May-13 | 3-May-14 | 4-May-13 | 4-May-13 | 3-May-14 | 4-May-13 | 3-May-14 | 4-May-13 | ||
Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | |||||
Foreign Exchange Contract | Foreign Exchange Contract | Foreign Exchange Contract | Foreign Exchange Contract | Foreign Exchange Contract | Commodity Contract | Commodity Contract | Commodity Contract | Commodity Contract | ||||||||||
Other operating income, net | Other operating income, net | Cost of Sales | Cost of Sales | Cost of Sales | ||||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
(Losses) gains recorded in accumulated OCI, beginning of year | ' | ' | ' | ' | ' | ' | ($13) | ($21.10) | ($17.70) | ($2.30) | $1.30 | ' | ($18.80) | [1] | ($0.50) | ' | ' | |
Current period (losses) gains recognized in OCI | 0.7 | -17.5 | ' | ' | ' | ' | ' | ' | ' | -1.3 | 0.5 | ' | 2 | -18 | ' | ' | ||
(Gains) losses on cash flow hedges reclassification, before tax | 7.4 | -1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -0.2 | ' | ' | 7.4 | -0.8 | ||
(Losses) gains recorded in accumulated OCI, end of year | ' | ' | ' | ' | ' | ' | -13 | -21.1 | -17.7 | -3.6 | 1.6 | ' | -9.4 | [1] | -19.3 | [1] | ' | ' |
Amount of gain (loss) recognized in income on derivatives | ' | ' | ($1.60) | ($0.20) | ($1.60) | ($0.20) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
[1] | As of May 3, 2014, losses include $11.1 million related to commodity contracts terminated prior to contract maturity that occurred in Fiscal 2014 (February 1, 2014 and May 4, 2013: $18.2 million and $22.0 million, respectively). |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments Held or Issued (Detail) (USD $) | 3-May-14 | Feb. 01, 2014 | 4-May-13 |
In Millions, unless otherwise specified | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Assets, Carrying Value | $4,021.60 | $4,029.20 | $3,694.30 |
Liabilities, Carrying Value | -1,377.80 | -1,466.10 | -1,349.80 |
Foreign Exchange Contract | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Assets, Carrying Value | ' | 0.2 | 1.1 |
Liabilities, Carrying Value | -2.8 | -2.1 | -0.3 |
Commodity Contract | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Assets, Carrying Value | 1.4 | 0.8 | 3 |
Liabilities, Carrying Value | -0.2 | -0.8 | -0.2 |
Level 2 | Foreign Exchange Contract | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Assets, Fair Value | ' | 0.2 | 1.1 |
Liabilities, Fair Value | -2.8 | -2.1 | -0.3 |
Level 2 | Commodity Contract | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Assets, Fair Value | 1.4 | 0.8 | 3 |
Liabilities, Fair Value | ($0.20) | ($0.80) | ($0.20) |
Components_of_Net_Periodic_Pen
Components of Net Periodic Pension Benefit (Detail) (UK Plan, USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | 3-May-14 | 4-May-13 |
UK Plan | ' | ' |
Components of net periodic pension benefit: | ' | ' |
Service cost | ($0.60) | ($0.60) |
Interest cost | -2.5 | -2.3 |
Expected return on UK Plan assets | 3.8 | 3.2 |
Amortization of unrecognized prior service credit | 0.4 | 0.4 |
Amortization of unrecognized actuarial loss | -0.5 | -0.6 |
Net periodic pension benefit | $0.60 | $0.10 |
Pensions_Additional_Informatio
Pensions - Additional Information (Detail) (UK Plan, USD $) | 3 Months Ended |
In Millions, unless otherwise specified | 3-May-14 |
UK Plan | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Defined benefit plans, contribution | $1.10 |
Defined benefit plan, expected contribution in the next fiscal year | $4.20 |
Recovered_Sheet3
Share-Based Compensation Expense - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | 3-May-14 | 4-May-13 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Share-based compensation expense | $3.20 | $3 |
Recovered_Sheet4
Loans, Overdrafts and Long-Term Debt (Detail) (USD $) | 3-May-14 | Feb. 01, 2014 | 4-May-13 |
In Millions, unless otherwise specified | |||
Current liabilities - loans and overdrafts | ' | ' | ' |
Revolving credit facility | ' | ' | ' |
Bank overdrafts | 8.8 | 19.3 | 5.7 |
Total loans and overdrafts | $8.80 | $19.30 | $5.70 |
Recovered_Sheet5
Loans, Overdrafts and Long-Term Debt - Additional Information (Detail) (USD $) | 3 Months Ended | 1 Months Ended | 3 Months Ended | 3 Months Ended | |||||||||
In Millions, unless otherwise specified | 3-May-14 | 4-May-13 | Feb. 01, 2014 | 3-May-14 | Feb. 01, 2014 | 4-May-13 | Feb. 19, 2014 | 3-May-14 | 3-May-14 | 4-May-13 | 3-May-14 | 3-May-14 | 3-May-14 |
Financial Standby Letter of Credit | Financial Standby Letter of Credit | Financial Standby Letter of Credit | Bridge Facility | Bridge Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Letter of Credit | ||||
Maximum | Minimum | ||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, maximum borrowing capacity | $400 | ' | ' | ' | ' | ' | $800 | ' | $400 | ' | ' | ' | ' |
Credit facility, increase | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200 |
Debt instrument, maturity period | ' | ' | ' | ' | ' | ' | '364 days | ' | '5 years | ' | ' | ' | '5 years |
Debt instrument, maturity date | ' | ' | ' | ' | ' | ' | ' | ' | 'May 2016 | ' | ' | ' | ' |
Leverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250.00% | ' | ' |
Fixed charge coverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 140.00% | ' |
Borrowings from the facility | 0 | 0 | 0 | 8.7 | 10.1 | 9.5 | ' | ' | ' | ' | ' | ' | ' |
Capitalized amendment fees | ' | ' | ' | ' | ' | ' | ' | ' | 2.1 | 2.1 | ' | ' | ' |
Accumulated amortization of capitalized amendment fees | ' | ' | ' | ' | ' | ' | ' | ' | 1.4 | 0.9 | ' | ' | ' |
Capitalized amendment fees charged to condensed consolidated income statement | 1 | 0.1 | ' | ' | ' | ' | ' | 0.8 | 0.2 | 0.1 | ' | ' | ' |
Bank overdraft | 8.8 | 5.7 | 19.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt issuance costs incurred and capitalized | ' | ' | ' | ' | ' | ' | ' | 4.2 | ' | ' | ' | ' | ' |
Payment of debt issuance costs | 3 | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' |
Debt issuance costs accrued | ' | ' | ' | ' | ' | ' | ' | $1.20 | ' | ' | ' | ' | ' |
Acquisitions_Additional_Inform
Acquisitions - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Nov. 04, 2013 | Feb. 01, 2014 | |
Business Acquisition [Line Items] | ' | ' | |
Goodwill acquired | ' | $2.20 | [1] |
Botswana Diamond Polishing Factory Acquisition | ' | ' | |
Business Acquisition [Line Items] | ' | ' | |
Total Consideration | 9.1 | ' | |
Property, plant and equipment acquired | ' | 5.5 | |
Goodwill acquired | ' | 3.6 | |
Goodwill expected deductible for income tax purposes | ' | $0 | |
[1] | See Note 18 for additional discussion of the goodwill recorded by the Company during Fiscal 2014. |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | 3 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | |||||||||
3-May-14 | Feb. 01, 2014 | 4-May-13 | 3-May-14 | 15-May-14 | 19-May-14 | Jun. 02, 2014 | 27-May-14 | 27-May-14 | Jun. 02, 2014 | 27-May-14 | 27-May-14 | 29-May-14 | |
Prior Credit Facility | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | ||||
Asset-backed securitization facility | Signet UK Finance plc | Amended Revolving Credit Facility | Amended Revolving Credit Facility | Term Loan Facility | Term Loan Facility | Amended and Restated Credit Agreement | Amended and Restated Credit Agreement | Zale | |||||
4.700% senior unsecured notes due in 2024 | Maximum | Minimum | |||||||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of outstanding shares acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% |
Common stock price per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $21 |
Total Consideration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,460,000,000 |
Debt assumed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000,000 |
Credit facility, maximum borrowing capacity | 400,000,000 | ' | ' | ' | ' | ' | ' | 400,000,000 | ' | ' | ' | ' | ' |
Acquisition related costs | 8,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, principal amount | ' | ' | ' | ' | ' | 400,000,000 | ' | ' | 400,000,000 | ' | ' | ' | ' |
Debt instrument, interest rate | ' | ' | ' | ' | ' | 4.70% | ' | ' | ' | ' | ' | ' | ' |
Net proceeds from issuance of notes | ' | ' | ' | ' | ' | 393,900,000 | ' | ' | ' | ' | ' | ' | ' |
Commercial paper | ' | ' | ' | ' | 600,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, maturity period | ' | ' | ' | ' | '2 years | ' | ' | ' | '5 years | ' | ' | ' | ' |
Term loan maturing in year one | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' |
Term loan maturing in year two | ' | ' | ' | ' | ' | ' | ' | ' | 7.50% | ' | ' | ' | ' |
Term loan maturing in year three | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' |
Term loan maturing in year four | ' | ' | ' | ' | ' | ' | ' | ' | 12.50% | ' | ' | ' | ' |
Term loan maturing in year five | ' | ' | ' | ' | ' | ' | ' | ' | 15.00% | ' | ' | ' | ' |
Term loan maturity date | ' | ' | ' | ' | ' | ' | ' | ' | 27-May-19 | ' | ' | ' | ' |
Leverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250.00% | ' | ' |
Fixed charge coverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 140.00% | ' |
Borrowings on revolving credit facility | 0 | 0 | 0 | 0 | ' | ' | 0 | ' | ' | ' | ' | ' | ' |
Borrowings on new term loan facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | $400,000,000 | ' | ' | ' |
Condensed_Consolidated_Income_1
Condensed Consolidated Income Statement (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | 3-May-14 | 4-May-13 |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Sales | $1,056.10 | $993.60 |
Cost of sales | -648.9 | -610.8 |
Gross margin | 407.2 | 382.8 |
Selling, general and administrative expenses | -310.5 | -287 |
Other operating income, net | 54 | 47 |
Operating (loss) income | 150.7 | 142.8 |
Interest expense, net | -1.8 | -0.9 |
(Loss) income before income taxes | 148.9 | 141.9 |
Income taxes | -52.3 | -50.1 |
Net income | 96.6 | 91.8 |
Signet Jewelers Limited | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Selling, general and administrative expenses | -0.4 | -0.4 |
Operating (loss) income | -0.4 | -0.4 |
(Loss) income before income taxes | -0.4 | -0.4 |
Equity in income of subsidiaries | 97 | 92.2 |
Net income | 96.6 | 91.8 |
Guarantor Subsidiaries | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Sales | 1,043.70 | 981.7 |
Cost of sales | -647.6 | -609.3 |
Gross margin | 396.1 | 372.4 |
Selling, general and administrative expenses | -303.8 | -285.6 |
Other operating income, net | 52 | 47.4 |
Operating (loss) income | 144.3 | 134.2 |
Intercompany interest (expense) income | -7 | -8.1 |
Interest expense, net | -1.8 | -0.9 |
(Loss) income before income taxes | 135.5 | 125.2 |
Income taxes | -55.9 | -48.8 |
Equity in income of subsidiaries | 91.2 | 83.7 |
Net income | 170.8 | 160.1 |
Non-Guarantor Subsidiaries | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Sales | 12.4 | 11.9 |
Cost of sales | -1.3 | -1.5 |
Gross margin | 11.1 | 10.4 |
Selling, general and administrative expenses | -6.3 | -1 |
Other operating income, net | 2 | -0.4 |
Operating (loss) income | 6.8 | 9 |
Intercompany interest (expense) income | 7 | 8.1 |
(Loss) income before income taxes | 13.8 | 17.1 |
Income taxes | 3.6 | -1.3 |
Equity in income of subsidiaries | 80.8 | 76 |
Net income | 98.2 | 91.8 |
Eliminations | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Equity in income of subsidiaries | -269 | -251.9 |
Net income | ($269) | ($251.90) |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statement of Comprehensive Income (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | 3-May-14 | 4-May-13 |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net income | $96.60 | $91.80 |
Other comprehensive income (loss): | ' | ' |
Foreign currency translation adjustments | 9.6 | -1.8 |
Cash flow hedges: | ' | ' |
Unrealized gain (loss) | 0.3 | -11.4 |
Reclassification adjustment for losses (gains) to net income | 4.7 | -0.6 |
Pension plan: | ' | ' |
Actuarial gain (loss) | ' | ' |
Reclassification adjustment to net income for amortization of actuarial loss | 0.4 | 0.5 |
Prior service (benefit) costs | ' | ' |
Reclassification adjustment to net income for amortization of prior service credits | -0.3 | -0.4 |
After-tax amount, Total other comprehensive income (loss) | 14.7 | -13.7 |
Total comprehensive income | 111.3 | 78.1 |
Signet Jewelers Limited | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net income | 96.6 | 91.8 |
Pension plan: | ' | ' |
Actuarial gain (loss) | ' | ' |
Prior service (benefit) costs | ' | ' |
Total comprehensive income | 96.6 | 91.8 |
Signet UK Finance plc | ' | ' |
Pension plan: | ' | ' |
Actuarial gain (loss) | ' | ' |
Prior service (benefit) costs | ' | ' |
Guarantor Subsidiaries | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net income | 170.8 | 160.1 |
Other comprehensive income (loss): | ' | ' |
Foreign currency translation adjustments | 10.9 | -2.1 |
Cash flow hedges: | ' | ' |
Unrealized gain (loss) | 0.3 | -11.4 |
Reclassification adjustment for losses (gains) to net income | 4.7 | -0.6 |
Pension plan: | ' | ' |
Actuarial gain (loss) | ' | ' |
Reclassification adjustment to net income for amortization of actuarial loss | 0.5 | 0.5 |
Prior service (benefit) costs | ' | ' |
Reclassification adjustment to net income for amortization of prior service credits | -0.4 | -0.4 |
After-tax amount, Total other comprehensive income (loss) | 16 | -14 |
Total comprehensive income | 186.8 | 146.1 |
Non-Guarantor Subsidiaries | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net income | 98.2 | 91.8 |
Other comprehensive income (loss): | ' | ' |
Foreign currency translation adjustments | -1.8 | 0.4 |
Pension plan: | ' | ' |
Actuarial gain (loss) | ' | ' |
Prior service (benefit) costs | ' | ' |
After-tax amount, Total other comprehensive income (loss) | -1.8 | 0.4 |
Total comprehensive income | 96.4 | 92.2 |
Eliminations | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net income | -269 | -251.9 |
Other comprehensive income (loss): | ' | ' |
Foreign currency translation adjustments | 0.5 | -0.1 |
Pension plan: | ' | ' |
Actuarial gain (loss) | ' | ' |
Prior service (benefit) costs | ' | ' |
After-tax amount, Total other comprehensive income (loss) | 0.5 | -0.1 |
Total comprehensive income | ($268.50) | ($252) |
Condensed_Consolidated_Balance2
Condensed Consolidated Balance Sheet (Detail) (USD $) | 3-May-14 | Feb. 01, 2014 | 4-May-13 | Feb. 02, 2013 |
In Millions, unless otherwise specified | ||||
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | $249.10 | $247.60 | $263.70 | $301 |
Accounts receivable, net | 1,308.20 | 1,374 | 1,157.50 | ' |
Other receivables | 47.1 | 51.5 | 40.2 | ' |
Other current assets | 91 | 87 | 81.8 | ' |
Deferred tax assets | 2.7 | 3 | 2.3 | ' |
Income taxes | 10.7 | 6.5 | 10.1 | ' |
Inventories | 1,523.90 | 1,488 | 1,426.40 | ' |
Total current assets | 3,232.70 | 3,257.60 | 2,982 | ' |
Non-current assets: | ' | ' | ' | ' |
Property, plant and equipment, net | 494 | 487.6 | 429.9 | ' |
Other assets | 120.3 | 114 | 107.2 | ' |
Deferred tax assets | 114.8 | 113.7 | 124.9 | ' |
Retirement benefit asset | 59.8 | 56.3 | 50.3 | ' |
Total assets | 4,021.60 | 4,029.20 | 3,694.30 | ' |
Current liabilities: | ' | ' | ' | ' |
Loans and overdrafts | 8.8 | 19.3 | 5.7 | ' |
Accounts payable | 163.1 | 162.9 | 176.8 | ' |
Accrued expenses and other current liabilities | 293.8 | 328.5 | 269.4 | ' |
Deferred revenue | 174.4 | 173 | 157.6 | ' |
Deferred tax liabilities | 123.9 | 113.1 | 145.6 | ' |
Income taxes | 32.2 | 103.9 | 64.5 | ' |
Total current liabilities | 796.2 | 900.7 | 819.6 | ' |
Non-current liabilities: | ' | ' | ' | ' |
Deferred tax liabilities | 2.7 | ' | 1 | ' |
Other liabilities | 121.6 | 121.7 | 113.3 | ' |
Deferred revenue | 457.3 | 443.7 | 415.9 | ' |
Total liabilities | 1,377.80 | 1,466.10 | 1,349.80 | ' |
Total shareholders' equity | 2,643.80 | 2,563.10 | 2,344.50 | ' |
Total liabilities and shareholders' equity | 4,021.60 | 4,029.20 | 3,694.30 | ' |
Signet Jewelers Limited | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 1.7 | 1.4 | 9.4 | 13.4 |
Intercompany receivables, net | 24.3 | 47.7 | 26.6 | ' |
Other current assets | 0.1 | ' | 0.1 | ' |
Total current assets | 26.1 | 49.1 | 36.1 | ' |
Non-current assets: | ' | ' | ' | ' |
Investment in subsidiaries | 2,634 | 2,526.30 | 2,320.60 | ' |
Total assets | 2,660.10 | 2,575.40 | 2,356.70 | ' |
Current liabilities: | ' | ' | ' | ' |
Accrued expenses and other current liabilities | 16.3 | 12.3 | 12.2 | ' |
Total current liabilities | 16.3 | 12.3 | 12.2 | ' |
Non-current liabilities: | ' | ' | ' | ' |
Total liabilities | 16.3 | 12.3 | 12.2 | ' |
Total shareholders' equity | 2,643.80 | 2,563.10 | 2,344.50 | ' |
Total liabilities and shareholders' equity | 2,660.10 | 2,575.40 | 2,356.70 | ' |
Guarantor Subsidiaries | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 226.7 | 237 | 225 | 271.3 |
Accounts receivable, net | 1,299.40 | 1,361.30 | 1,149.60 | ' |
Other receivables | 46 | 51.1 | 40.1 | ' |
Other current assets | 90.5 | 86.5 | 81.8 | ' |
Deferred tax assets | 2.5 | 2.8 | 2 | ' |
Income taxes | 10.1 | 6 | 10.1 | ' |
Inventories | 1,469.40 | 1,434.50 | 1,388.70 | ' |
Total current assets | 3,144.60 | 3,179.20 | 2,897.30 | ' |
Non-current assets: | ' | ' | ' | ' |
Property, plant and equipment, net | 487.8 | 481.5 | 429.3 | ' |
Investment in subsidiaries | 1,559.90 | 1,452.80 | 1,398.20 | ' |
Other assets | 116.7 | 110.4 | 107.2 | ' |
Deferred tax assets | 114.8 | 113.6 | 124.9 | ' |
Retirement benefit asset | 59.8 | 56.3 | 50.3 | ' |
Total assets | 5,483.60 | 5,393.80 | 5,007.20 | ' |
Current liabilities: | ' | ' | ' | ' |
Loans and overdrafts | 8.8 | 19.3 | 5.7 | ' |
Accounts payable | 162.9 | 160.5 | 176.4 | ' |
Intercompany payables, net | 257.8 | 285.7 | 736.7 | ' |
Accrued expenses and other current liabilities | 274.2 | 313.1 | 253.5 | ' |
Deferred revenue | 174.4 | 173 | 157.6 | ' |
Deferred tax liabilities | 123.9 | 113.1 | 145.6 | ' |
Income taxes | 35.7 | 101.3 | 63.2 | ' |
Total current liabilities | 1,037.70 | 1,166 | 1,538.70 | ' |
Non-current liabilities: | ' | ' | ' | ' |
Intercompany payables, net | 1,098 | 1,098 | 600 | ' |
Deferred tax liabilities | 2.7 | ' | 1 | ' |
Other liabilities | 118.5 | 118.5 | 108.2 | ' |
Deferred revenue | 457.3 | 443.7 | 415.9 | ' |
Total liabilities | 2,714.20 | 2,826.20 | 2,663.80 | ' |
Total shareholders' equity | 2,769.40 | 2,567.60 | 2,343.40 | ' |
Total liabilities and shareholders' equity | 5,483.60 | 5,393.80 | 5,007.20 | ' |
Non-Guarantor Subsidiaries | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 20.7 | 9.2 | 29.3 | 16.3 |
Accounts receivable, net | 8.8 | 12.7 | 7.9 | ' |
Intercompany receivables, net | 233.5 | 238 | 710.1 | ' |
Other receivables | 1.1 | 0.4 | 0.1 | ' |
Other current assets | 0.4 | 0.5 | -0.1 | ' |
Deferred tax assets | 0.2 | 0.2 | 0.3 | ' |
Income taxes | 0.6 | 0.5 | ' | ' |
Inventories | 54.5 | 53.5 | 37.7 | ' |
Total current assets | 319.8 | 315 | 785.3 | ' |
Non-current assets: | ' | ' | ' | ' |
Property, plant and equipment, net | 6.2 | 6.1 | 0.6 | ' |
Investment in subsidiaries | 1,243.90 | 1,143.20 | 1,101.50 | ' |
Intercompany receivables, net | 1,098 | 1,098 | 600 | ' |
Other assets | 3.6 | 3.6 | ' | ' |
Deferred tax assets | ' | 0.1 | ' | ' |
Total assets | 2,671.50 | 2,566 | 2,487.40 | ' |
Current liabilities: | ' | ' | ' | ' |
Accounts payable | 0.2 | 2.4 | 0.4 | ' |
Accrued expenses and other current liabilities | 3.3 | 3.1 | 3.7 | ' |
Income taxes | -3.5 | 2.6 | 1.3 | ' |
Total current liabilities | ' | 8.1 | 5.4 | ' |
Non-current liabilities: | ' | ' | ' | ' |
Other liabilities | 3.1 | 3.2 | 5.1 | ' |
Total liabilities | 3.1 | 11.3 | 10.5 | ' |
Total shareholders' equity | 2,668.40 | 2,554.70 | 2,476.90 | ' |
Total liabilities and shareholders' equity | 2,671.50 | 2,566 | 2,487.40 | ' |
Eliminations | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Intercompany receivables, net | -257.8 | -285.7 | -736.7 | ' |
Total current assets | -257.8 | -285.7 | -736.7 | ' |
Non-current assets: | ' | ' | ' | ' |
Investment in subsidiaries | -5,437.80 | -5,122.30 | -4,820.30 | ' |
Intercompany receivables, net | -1,098 | -1,098 | -600 | ' |
Total assets | -6,793.60 | -6,506 | -6,157 | ' |
Current liabilities: | ' | ' | ' | ' |
Intercompany payables, net | -257.8 | -285.7 | -736.7 | ' |
Total current liabilities | -257.8 | -285.7 | -736.7 | ' |
Non-current liabilities: | ' | ' | ' | ' |
Intercompany payables, net | -1,098 | -1,098 | -600 | ' |
Total liabilities | -1,355.80 | -1,383.70 | -1,336.70 | ' |
Total shareholders' equity | -5,437.80 | -5,122.30 | -4,820.30 | ' |
Total liabilities and shareholders' equity | ($6,793.60) | ($6,506) | ($6,157) | ' |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statement of Cash Flows (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | 3-May-14 | 4-May-13 |
Cash flows from operating activities | ' | ' |
Other cash (used in) provided by operating activities | $73.50 | $45.10 |
Net cash (used in) provided by operating activities | 73.5 | 45.1 |
Investing activities | ' | ' |
Purchase of property, plant and equipment | -28.1 | -23.2 |
Net cash used in investing activities | -28.1 | -23.2 |
Financing activities | ' | ' |
Dividends paid | -12 | -9.8 |
Proceeds from issuance of common shares | 1 | 5 |
Excess tax benefit from exercise of share awards | 7.7 | ' |
Repurchase of common shares | -11.4 | -50.1 |
Net settlement of equity based awards | -15.3 | -9.1 |
Payment of debt issuance costs | -3 | ' |
(Repayment of) proceeds from short-term borrowings | -10.5 | 5.7 |
Net cash provided by (used in) financing activities | -43.5 | -58.3 |
Cash and cash equivalents at beginning of period | 247.6 | 301 |
(Decrease) increase in cash and cash equivalents | 1.9 | -36.4 |
Effect of exchange rate changes on cash and cash equivalents | -0.4 | -0.9 |
Cash and cash equivalents at end of period | 249.1 | 263.7 |
Signet Jewelers Limited | ' | ' |
Cash flows from operating activities | ' | ' |
Other cash (used in) provided by operating activities | -0.5 | 39.5 |
Net cash (used in) provided by operating activities | -0.5 | 39.5 |
Financing activities | ' | ' |
Dividends paid | -12 | -9.8 |
Proceeds from issuance of common shares | 1 | 5 |
Repurchase of common shares | -11.4 | -50.1 |
Net settlement of equity based awards | -15.3 | -9.1 |
Intercompany activity, net | 38.5 | 20.5 |
Net cash provided by (used in) financing activities | 0.8 | -43.5 |
Cash and cash equivalents at beginning of period | 1.4 | 13.4 |
(Decrease) increase in cash and cash equivalents | 0.3 | -4 |
Cash and cash equivalents at end of period | 1.7 | 9.4 |
Guarantor Subsidiaries | ' | ' |
Cash flows from operating activities | ' | ' |
Other cash (used in) provided by operating activities | 62.4 | 31.1 |
Net cash (used in) provided by operating activities | 62.4 | 31.1 |
Investing activities | ' | ' |
Purchase of property, plant and equipment | -27.8 | -23.2 |
Net cash used in investing activities | -27.8 | -23.2 |
Financing activities | ' | ' |
Intercompany dividends paid | 1.1 | -33.3 |
Excess tax benefit from exercise of share awards | 7.7 | ' |
Payment of debt issuance costs | -3 | ' |
(Repayment of) proceeds from short-term borrowings | -10.5 | 5.7 |
Intercompany activity, net | -42.4 | -25.2 |
Net cash provided by (used in) financing activities | -47.1 | -52.8 |
Cash and cash equivalents at beginning of period | 237 | 271.3 |
(Decrease) increase in cash and cash equivalents | -12.5 | -44.9 |
Effect of exchange rate changes on cash and cash equivalents | 2.2 | -1.4 |
Cash and cash equivalents at end of period | 226.7 | 225 |
Non-Guarantor Subsidiaries | ' | ' |
Cash flows from operating activities | ' | ' |
Other cash (used in) provided by operating activities | 11.6 | 14.5 |
Net cash (used in) provided by operating activities | 11.6 | 14.5 |
Investing activities | ' | ' |
Purchase of property, plant and equipment | -0.3 | ' |
Net cash used in investing activities | -0.3 | ' |
Financing activities | ' | ' |
Intercompany dividends paid | -1.1 | -6.7 |
Intercompany activity, net | 3.9 | 4.7 |
Net cash provided by (used in) financing activities | 2.8 | -2 |
Cash and cash equivalents at beginning of period | 9.2 | 16.3 |
(Decrease) increase in cash and cash equivalents | 14.1 | 12.5 |
Effect of exchange rate changes on cash and cash equivalents | -2.6 | 0.5 |
Cash and cash equivalents at end of period | 20.7 | 29.3 |
Eliminations | ' | ' |
Cash flows from operating activities | ' | ' |
Other cash (used in) provided by operating activities | ' | -40 |
Net cash (used in) provided by operating activities | ' | -40 |
Financing activities | ' | ' |
Intercompany dividends paid | ' | 40 |
Net cash provided by (used in) financing activities | ' | $40 |