FORM 10-Q
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x
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Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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for the quarterly period ended August 4, 2018 or
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¨
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Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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SIGNET JEWELERS LIMITED
(Exact name of Registrant as specified in its charter)
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Bermuda
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Not Applicable
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(State or other jurisdiction of incorporation)
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(I.R.S. Employer Identification No.)
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PAGE
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PART I
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FINANCIAL INFORMATION
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ITEM 1.
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Financial Statements (Unaudited)
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Condensed Consolidated Income Statements
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Condensed Consolidated Statements of Comprehensive Income (Loss)
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Condensed Consolidated Balance Sheets
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Condensed Consolidated Statements of Cash Flows
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Condensed Consolidated Statement of Shareholders’ Equity
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Notes to the Condensed Consolidated Financial Statements
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ITEM 2.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations
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ITEM 3.
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Quantitative and Qualitative Disclosures about Market Risk
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ITEM 4.
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Controls and Procedures
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PART II
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OTHER INFORMATION
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ITEM 1.
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Legal Proceedings
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ITEM 1A.
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Risk Factors
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ITEM 2.
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Unregistered Sales of Equity and Securities and Use of Proceeds
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ITEM 6.
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Exhibits
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13 weeks ended
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26 weeks ended
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||||||||||||
(in millions, except per share amounts)
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August 4, 2018
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July 29, 2017
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August 4, 2018
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July 29, 2017
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Notes
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||||||||
Sales
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$
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1,420.1
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$
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1,399.6
|
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$
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2,900.7
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$
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2,803.0
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6
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Cost of sales
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(929.9
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)
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(941.7
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)
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(1,925.7
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)
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(1,853.9
|
)
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||||
Restructuring charges - cost of sales
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(63.2
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)
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—
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(63.2
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)
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—
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7
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||||
Gross margin
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427.0
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457.9
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911.8
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949.1
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||||
Selling, general and administrative expenses
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(444.8
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)
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(409.0
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)
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(927.6
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)
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(861.8
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)
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||||
Credit transaction, net
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(23.9
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)
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14.8
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(167.0
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)
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14.8
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|
4
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||||
Restructuring charges
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(19.6
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)
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—
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(26.1
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)
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—
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7
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||||
Goodwill and intangible impairments
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—
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—
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(448.7
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)
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—
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15
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||||
Other operating income, net
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3.2
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71.9
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25.3
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148.8
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||||
Operating income (loss)
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(58.1
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)
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135.6
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(632.3
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)
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250.9
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6
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||||
Interest expense, net
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(9.4
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)
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(13.5
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)
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(18.3
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)
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(26.1
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)
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Other non-operating income
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0.5
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—
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1.1
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—
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Income (loss) before income taxes
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(67.0
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)
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122.1
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(649.5
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)
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224.8
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||||
Income taxes
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44.0
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(28.7
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)
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129.9
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(52.9
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)
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12
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||||
Net income (loss)
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$
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(23.0
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)
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$
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93.4
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$
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(519.6
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)
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$
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171.9
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Dividends on redeemable convertible preferred shares
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(8.2
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)
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(8.2
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)
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(16.4
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)
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(16.4
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)
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9
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||||
Net income (loss) attributable to common shareholders
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$
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(31.2
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)
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$
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85.2
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$
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(536.0
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)
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$
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155.5
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Earnings (loss) per common share:
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Basic
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$
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(0.56
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)
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$
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1.34
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$
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(9.27
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)
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$
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2.36
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10
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Diluted
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$
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(0.56
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)
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$
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1.33
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$
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(9.27
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)
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$
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2.36
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10
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Weighted average common shares outstanding:
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Basic
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56.1
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63.8
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57.8
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65.9
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10
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Diluted
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56.1
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70.5
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57.8
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66.0
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10
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Dividends declared per common share
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$
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0.37
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$
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0.31
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$
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0.74
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$
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0.62
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9
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13 weeks ended
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|||||||||||||||||||||||||
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August 4, 2018
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July 29, 2017
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(in millions)
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Pre-tax
amount |
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Tax
(expense) benefit |
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After-tax
amount |
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Pre-tax
amount |
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Tax
(expense) benefit |
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After-tax
amount |
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Net income (loss)
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$
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(23.0
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)
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$
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93.4
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Other comprehensive income (loss):
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Foreign currency translation adjustments
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$
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(15.3
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)
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$
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—
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(15.3
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)
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$
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24.6
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$
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—
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24.6
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Available-for-sale securities:
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|||||||||||||||
Unrealized gain
(1)
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0.6
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(0.1
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)
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0.5
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0.5
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(0.2
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)
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0.3
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|||||||||
Cash flow hedges:
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Unrealized loss
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(4.3
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)
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1.3
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(3.0
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)
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(1.3
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)
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0.4
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(0.9
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)
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|||||||||
Reclassification adjustment for (gains) losses to net income
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(0.4
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)
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0.2
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(0.2
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)
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(1.4
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)
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0.3
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(1.1
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)
|
|||||||||
Pension plan:
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Actuarial loss
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(8.0
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)
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1.5
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(6.5
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)
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—
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—
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—
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|||||||||
Reclassification adjustment to net income for amortization of actuarial losses
|
—
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—
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|
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—
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0.8
|
|
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(0.2
|
)
|
|
0.6
|
|
|||||||||
Reclassification adjustment to net income for amortization of net prior service credits
|
0.1
|
|
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—
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|
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0.1
|
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(0.5
|
)
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0.1
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(0.4
|
)
|
|||||||||
Total other comprehensive income (loss)
|
$
|
(27.3
|
)
|
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$
|
2.9
|
|
|
$
|
(24.4
|
)
|
|
$
|
22.7
|
|
|
$
|
0.4
|
|
|
$
|
23.1
|
|
|||
Total comprehensive income (loss)
|
|
|
|
|
$
|
(47.4
|
)
|
|
|
|
|
|
$
|
116.5
|
|
|
26 weeks ended
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|||||||||||||||||||||||||
|
August 4, 2018
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|
July 29, 2017
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|||||||||||||||||||||||
(in millions)
|
Pre-tax
amount |
|
Tax
(expense) benefit |
|
After-tax
amount |
|
Pre-tax
amount |
|
Tax
(expense) benefit |
|
After-tax
amount |
|||||||||||||||
Net income (loss)
|
|
|
|
|
$
|
(519.6
|
)
|
|
|
|
|
|
$
|
171.9
|
|
|||||||||||
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Foreign currency translation adjustments
|
$
|
(37.0
|
)
|
|
$
|
—
|
|
|
(37.0
|
)
|
|
$
|
25.1
|
|
|
$
|
—
|
|
|
25.1
|
|
|||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Unrealized gain
(1)
|
0.4
|
|
|
(0.1
|
)
|
|
0.3
|
|
|
0.8
|
|
|
(0.3
|
)
|
|
0.5
|
|
|||||||||
Impact from adoption of new accounting
pronouncements
(2)
|
(1.1
|
)
|
|
0.3
|
|
|
(0.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Unrealized gain (loss)
|
(2.4
|
)
|
|
0.9
|
|
|
(1.5
|
)
|
|
3.2
|
|
|
(1.4
|
)
|
|
1.8
|
|
|||||||||
Reclassification adjustment for (gains) losses to net income
|
(0.9
|
)
|
|
0.4
|
|
|
(0.5
|
)
|
|
(3.3
|
)
|
|
0.8
|
|
|
(2.5
|
)
|
|||||||||
Pension plan:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Actuarial loss
|
(8.0
|
)
|
|
1.5
|
|
|
(6.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Reclassification adjustment to net income for amortization of actuarial losses
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|
1.5
|
|
|
(0.3
|
)
|
|
1.2
|
|
|||||||||
Reclassification adjustment to net income for amortization of net prior service credits
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.9
|
)
|
|
0.2
|
|
|
(0.7
|
)
|
|||||||||
Total other comprehensive income (loss)
|
$
|
(48.7
|
)
|
|
$
|
3.0
|
|
|
$
|
(45.7
|
)
|
|
$
|
26.4
|
|
|
$
|
(1.0
|
)
|
|
$
|
25.4
|
|
|||
Total comprehensive income (loss)
|
|
|
|
|
$
|
(565.3
|
)
|
|
|
|
|
|
$
|
197.3
|
|
(1)
|
During the
13 and 26 weeks ended August 4, 2018
, amounts represent unrealized gains related to the Company’s available-for-sale debt securities. During the
13 and 26 weeks ended July 29, 2017
, amounts represent unrealized gains related to the Company’s available-for-sale debt and equity securities.
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(2)
|
Adjustment reflects the reclassification of unrealized gains related to the Company’s available-for-sale equity securities as of February 3, 2018 from AOCI into retained earnings associated with the adoption of ASU 2016-1.
|
(in millions, except par value per share amount)
|
August 4, 2018
|
|
February 3, 2018
|
|
July 29, 2017
|
|
Notes
|
||||||
Assets
|
|
|
|
|
|
|
|
||||||
Current assets:
|
|
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
$
|
134.1
|
|
|
$
|
225.1
|
|
|
$
|
119.1
|
|
|
|
Accounts receivable, held for sale
|
4.6
|
|
|
—
|
|
|
1,055.6
|
|
|
4
|
|||
Accounts receivable, net
|
6.5
|
|
|
692.5
|
|
|
664.5
|
|
|
13
|
|||
Other receivables
|
83.4
|
|
|
87.2
|
|
|
91.2
|
|
|
|
|||
Other current assets
|
155.9
|
|
|
158.2
|
|
|
128.5
|
|
|
|
|||
Income taxes
|
119.2
|
|
|
2.6
|
|
|
1.8
|
|
|
|
|||
Inventories
|
2,363.8
|
|
|
2,280.5
|
|
|
2,282.1
|
|
|
14
|
|||
Total current assets
|
2,867.5
|
|
|
3,446.1
|
|
|
4,342.8
|
|
|
|
|||
Non-current assets:
|
|
|
|
|
|
|
|
||||||
Property, plant and equipment, net of accumulated depreciation of $1,249.2, $1,197.6 and $1,131.4, respectively
|
820.1
|
|
|
877.9
|
|
|
836.6
|
|
|
|
|||
Goodwill
|
509.0
|
|
|
821.7
|
|
|
519.9
|
|
|
15
|
|||
Intangible assets, net
|
341.3
|
|
|
481.5
|
|
|
413.9
|
|
|
15
|
|||
Other assets
|
169.6
|
|
|
171.2
|
|
|
165.1
|
|
|
|
|||
Deferred tax assets
|
2.2
|
|
|
1.4
|
|
|
—
|
|
|
|
|||
Retirement benefit asset
|
31.1
|
|
|
39.8
|
|
|
35.5
|
|
|
|
|||
Total assets
|
$
|
4,740.8
|
|
|
$
|
5,839.6
|
|
|
$
|
6,313.8
|
|
|
|
Liabilities and Shareholders’ equity
|
|
|
|
|
|
|
|
||||||
Current liabilities:
|
|
|
|
|
|
|
|
||||||
Loans and overdrafts
|
$
|
111.4
|
|
|
$
|
44.0
|
|
|
$
|
939.4
|
|
|
18
|
Accounts payable
|
236.7
|
|
|
237.0
|
|
|
148.2
|
|
|
|
|||
Accrued expenses and other current liabilities
|
440.4
|
|
|
448.0
|
|
|
426.6
|
|
|
|
|||
Deferred revenue
|
276.3
|
|
|
288.6
|
|
|
262.3
|
|
|
3
|
|||
Income taxes
|
—
|
|
|
19.6
|
|
|
33.5
|
|
|
|
|||
Total current liabilities
|
1,064.8
|
|
|
1,037.2
|
|
|
1,810.0
|
|
|
|
|||
Non-current liabilities:
|
|
|
|
|
|
|
|
||||||
Long-term debt
|
671.1
|
|
|
688.2
|
|
|
705.3
|
|
|
18
|
|||
Other liabilities
|
236.1
|
|
|
239.6
|
|
|
247.1
|
|
|
|
|||
Deferred revenue
|
663.3
|
|
|
668.9
|
|
|
658.8
|
|
|
3
|
|||
Deferred tax liabilities
|
91.0
|
|
|
92.3
|
|
|
103.3
|
|
|
|
|||
Total liabilities
|
2,726.3
|
|
|
2,726.2
|
|
|
3,524.5
|
|
|
|
|||
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
21
|
|||
Series A redeemable convertible preferred shares of $.01 par value: authorized 500 shares, 0.625 shares outstanding (February 3, 2018 and July 29, 2017: 0.625 shares outstanding)
|
614.4
|
|
|
613.6
|
|
|
612.7
|
|
|
8
|
|||
Shareholders’ equity:
|
|
|
|
|
|
|
|
||||||
Common shares of $0.18 par value: authorized 500 shares, 51.9 shares outstanding (February 3, 2018: 60.5 outstanding; July 29, 2017: 60.3 outstanding)
|
15.7
|
|
|
15.7
|
|
|
15.7
|
|
|
|
|||
Additional paid-in capital
|
287.6
|
|
|
290.2
|
|
|
282.2
|
|
|
|
|||
Other reserves
|
0.4
|
|
|
0.4
|
|
|
0.4
|
|
|
|
|||
Treasury shares at cost: 35.3 shares (February 3, 2018: 26.7 shares; July 29, 2017: 26.9 shares)
|
(2,418.0
|
)
|
|
(1,942.1
|
)
|
|
(1,949.7
|
)
|
|
9
|
|||
Retained earnings
|
3,820.7
|
|
|
4,396.2
|
|
|
4,110.3
|
|
|
|
|||
Accumulated other comprehensive loss
|
(306.3
|
)
|
|
(260.6
|
)
|
|
(282.3
|
)
|
|
11
|
|||
Total shareholders’ equity
|
1,400.1
|
|
|
2,499.8
|
|
|
2,176.6
|
|
|
|
|||
Total liabilities, redeemable convertible preferred shares and shareholders’ equity
|
$
|
4,740.8
|
|
|
$
|
5,839.6
|
|
|
$
|
6,313.8
|
|
|
|
|
|
26 weeks ended
|
||||||
(in millions)
|
|
August 4, 2018
|
|
July 29, 2017
|
||||
Cash flows from operating activities
|
|
|
|
|
||||
Net (loss) income
|
|
$
|
(519.6
|
)
|
|
$
|
171.9
|
|
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
|
|
|
|
|
||||
Depreciation and amortization
|
|
93.7
|
|
|
98.4
|
|
||
Amortization of unfavorable leases and contracts
|
|
(4.1
|
)
|
|
(8.6
|
)
|
||
Pension benefit
|
|
(0.6
|
)
|
|
—
|
|
||
Share-based compensation
|
|
8.2
|
|
|
6.7
|
|
||
Deferred taxation
|
|
(0.3
|
)
|
|
2.6
|
|
||
Credit transaction, net
|
|
160.4
|
|
|
(20.7
|
)
|
||
Goodwill and intangible impairments
|
|
448.7
|
|
|
—
|
|
||
Restructuring charges
|
|
77.4
|
|
|
—
|
|
||
Amortization of debt discount and issuance costs
|
|
1.0
|
|
|
1.1
|
|
||
Other non-cash movements
|
|
(3.3
|
)
|
|
0.6
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
|
||||
Decrease in accounts receivable held for investment
|
|
40.4
|
|
|
159.1
|
|
||
Decrease in accounts receivable held for sale
|
|
18.2
|
|
|
—
|
|
||
Proceeds from sale of in-house finance receivables
|
|
445.5
|
|
|
—
|
|
||
Decrease in other assets and other receivables
|
|
9.8
|
|
|
15.6
|
|
||
(Increase) decrease in inventories
|
|
(170.9
|
)
|
|
180.0
|
|
||
Increase (decrease) in accounts payable
|
|
3.6
|
|
|
(104.4
|
)
|
||
Decrease in accrued expenses and other liabilities
|
|
(2.0
|
)
|
|
(6.4
|
)
|
||
Decrease in deferred revenue
|
|
(17.0
|
)
|
|
(17.1
|
)
|
||
Decrease in income taxes payable
|
|
(134.9
|
)
|
|
(67.4
|
)
|
||
Pension plan contributions
|
|
(1.6
|
)
|
|
(1.6
|
)
|
||
Net cash provided by operating activities
|
|
452.6
|
|
|
409.8
|
|
||
Investing activities
|
|
|
|
|
||||
Purchase of property, plant and equipment
|
|
(56.1
|
)
|
|
(105.7
|
)
|
||
Proceeds from sale of assets
|
|
5.5
|
|
|
—
|
|
||
Purchase of available-for-sale securities
|
|
(0.6
|
)
|
|
(1.3
|
)
|
||
Proceeds from sale of available-for-sale securities
|
|
8.5
|
|
|
0.6
|
|
||
Net cash used in investing activities
|
|
(42.7
|
)
|
|
(106.4
|
)
|
||
Financing activities
|
|
|
|
|
||||
Dividends paid on common shares
|
|
(40.6
|
)
|
|
(39.0
|
)
|
||
Dividends paid on redeemable convertible preferred shares
|
|
(15.6
|
)
|
|
(19.1
|
)
|
||
Repurchase of common shares
|
|
(485.0
|
)
|
|
(460.0
|
)
|
||
Repayments of term loans
|
|
(13.4
|
)
|
|
(9.0
|
)
|
||
Proceeds from securitization facility
|
|
—
|
|
|
1,242.9
|
|
||
Repayments of securitization facility
|
|
—
|
|
|
(1,242.9
|
)
|
||
Proceeds from revolving credit facility
|
|
308.0
|
|
|
550.0
|
|
||
Repayments of revolving credit facility
|
|
(237.0
|
)
|
|
(303.0
|
)
|
||
Repayments of bank overdrafts
|
|
(8.1
|
)
|
|
(3.1
|
)
|
||
Other financing activities
|
|
(2.1
|
)
|
|
(3.0
|
)
|
||
Net cash used in financing activities
|
|
(493.8
|
)
|
|
(286.2
|
)
|
||
Cash and cash equivalents at beginning of period
|
|
225.1
|
|
|
98.7
|
|
||
(Decrease) increase in cash and cash equivalents
|
|
(83.9
|
)
|
|
17.2
|
|
||
Effect of exchange rate changes on cash and cash equivalents
|
|
(7.1
|
)
|
|
3.2
|
|
||
Cash and cash equivalents at end of period
|
|
$
|
134.1
|
|
|
$
|
119.1
|
|
(in millions)
|
Common
shares at par value |
|
Additional
paid-in capital |
|
Other
reserves |
|
Treasury
shares |
|
Retained
earnings |
|
Accumulated
other comprehensive loss |
|
Total
shareholders’ equity |
||||||||||||||
Balance at February 3, 2018
|
$
|
15.7
|
|
|
$
|
290.2
|
|
|
$
|
0.4
|
|
|
$
|
(1,942.1
|
)
|
|
$
|
4,396.2
|
|
|
$
|
(260.6
|
)
|
|
$
|
2,499.8
|
|
Impact from adoption of new accounting pronouncements
(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.8
|
|
|
(0.8
|
)
|
|
—
|
|
|||||||
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(519.6
|
)
|
|
—
|
|
|
(519.6
|
)
|
|||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(44.9
|
)
|
|
(44.9
|
)
|
|||||||
Dividends on common shares
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(41.0
|
)
|
|
—
|
|
|
(41.0
|
)
|
|||||||
Dividends on redeemable convertible preferred shares
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(16.4
|
)
|
|
—
|
|
|
(16.4
|
)
|
|||||||
Repurchase of common shares
|
—
|
|
|
—
|
|
|
—
|
|
|
(485.0
|
)
|
|
—
|
|
|
—
|
|
|
(485.0
|
)
|
|||||||
Net settlement of equity based awards
|
—
|
|
|
(10.8
|
)
|
|
—
|
|
|
9.1
|
|
|
0.7
|
|
|
—
|
|
|
(1.0
|
)
|
|||||||
Share-based compensation expense
|
—
|
|
|
8.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8.2
|
|
|||||||
Balance at August 4, 2018
|
$
|
15.7
|
|
|
$
|
287.6
|
|
|
$
|
0.4
|
|
|
$
|
(2,418.0
|
)
|
|
$
|
3,820.7
|
|
|
$
|
(306.3
|
)
|
|
$
|
1,400.1
|
|
(1)
|
Adjustment reflects the reclassification of unrealized gains related to the Company’s equity security investments as of February 3, 2018 from AOCI into beginning retained earnings associated with the adoption of ASU 2016-1.
|
Standard
|
|
Description
|
ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, issued August 2017.
|
|
Expands the types of risk management strategies eligible for hedge accounting, refines the documentation and effectiveness assessment requirements and modifies the presentation and disclosure requirements for hedge accounting activities. The ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018, with early adoption permitted.
|
ASU No. 2018-13, Fair Value Measurements (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement
|
|
Modifies the disclosure requirements on fair value measurements in Topic 820 and eliminates ‘at a minimum’ from the phrase ‘an entity shall disclose at a minimum’ to promote the appropriate exercise of discretion by entities when considering fair value disclosures and to clarify that materiality is an appropriate consideration. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted.
|
ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Topic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans
|
|
Modifies the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans and clarifies the disclosure requirements regarding projected benefit obligations and accumulated benefit obligations. The ASU is effective for fiscal years ending after December 15, 2020, with early adoption permitted.
|
|
13 weeks ended August 4, 2018
|
|
13 weeks ended July 29, 2017
|
||||||||||||||||||||||||||||
(in millions)
|
North America
|
|
International
|
|
Other
|
|
Consolidated
|
|
North America
|
|
International
|
|
Other
|
|
Consolidated
|
||||||||||||||||
Sales by product:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Bridal
|
$
|
585.1
|
|
|
$
|
51.8
|
|
|
$
|
—
|
|
|
$
|
636.9
|
|
|
$
|
518.6
|
|
|
$
|
52.6
|
|
|
$
|
—
|
|
|
$
|
571.2
|
|
Fashion
|
420.5
|
|
|
27.2
|
|
|
—
|
|
|
447.7
|
|
|
400.8
|
|
|
29.2
|
|
|
—
|
|
|
430.0
|
|
||||||||
Watches
|
58.0
|
|
|
46.8
|
|
|
—
|
|
|
104.8
|
|
|
55.1
|
|
|
44.0
|
|
|
—
|
|
|
99.1
|
|
||||||||
Other
(1)
|
223.1
|
|
|
5.7
|
|
|
1.9
|
|
|
230.7
|
|
|
287.7
|
|
|
6.1
|
|
|
5.5
|
|
|
299.3
|
|
||||||||
Total sales
|
$
|
1,286.7
|
|
|
$
|
131.5
|
|
|
$
|
1.9
|
|
|
$
|
1,420.1
|
|
|
$
|
1,262.2
|
|
|
$
|
131.9
|
|
|
$
|
5.5
|
|
|
$
|
1,399.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
26 weeks ended August 4, 2018
|
|
26 weeks ended July 29, 2017
|
||||||||||||||||||||||||||||
(in millions)
|
North America
|
|
International
|
|
Other
|
|
Consolidated
|
|
North America
|
|
International
|
|
Other
|
|
Consolidated
|
||||||||||||||||
Sales by product:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Bridal
|
$
|
1,203.0
|
|
|
$
|
107.4
|
|
|
$
|
—
|
|
|
$
|
1,310.4
|
|
|
$
|
1,081.5
|
|
|
$
|
105.7
|
|
|
$
|
—
|
|
|
$
|
1,187.2
|
|
Fashion
|
881.6
|
|
|
53.1
|
|
|
—
|
|
|
934.7
|
|
|
851.7
|
|
|
55.0
|
|
|
—
|
|
|
906.7
|
|
||||||||
Watches
|
110.2
|
|
|
85.9
|
|
|
—
|
|
|
196.1
|
|
|
106.6
|
|
|
80.5
|
|
|
—
|
|
|
187.1
|
|
||||||||
Other
(1)
|
439.7
|
|
|
13.8
|
|
|
6.0
|
|
|
459.5
|
|
|
496.8
|
|
|
13.2
|
|
|
12.0
|
|
|
522.0
|
|
||||||||
Total sales
|
$
|
2,634.5
|
|
|
$
|
260.2
|
|
|
$
|
6.0
|
|
|
$
|
2,900.7
|
|
|
$
|
2,536.6
|
|
|
$
|
254.4
|
|
|
$
|
12.0
|
|
|
$
|
2,803.0
|
|
(1)
|
Other revenue primarily includes gift and other miscellaneous jewelery sales, repairs, warranty and other miscellaneous non-jewelry sales.
|
|
13 weeks ended August 4, 2018
|
|
13 weeks ended July 29, 2017
|
||||||||||||||||||||||||||||
(in millions)
|
North America
|
|
International
|
|
Other
|
|
Consolidated
|
|
North America
|
|
International
|
|
Other
|
|
Consolidated
|
||||||||||||||||
Sales by channel:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Store
|
$
|
1,150.2
|
|
|
$
|
117.7
|
|
|
$
|
—
|
|
|
$
|
1,267.9
|
|
|
$
|
1,191.5
|
|
|
$
|
120.4
|
|
|
$
|
—
|
|
|
$
|
1,311.9
|
|
E-commerce
(1)
|
136.5
|
|
|
13.8
|
|
|
—
|
|
|
150.3
|
|
|
70.7
|
|
|
11.5
|
|
|
—
|
|
|
82.2
|
|
||||||||
Other
|
—
|
|
|
—
|
|
|
1.9
|
|
|
1.9
|
|
|
—
|
|
|
—
|
|
|
5.5
|
|
|
5.5
|
|
||||||||
Total sales
|
$
|
1,286.7
|
|
|
$
|
131.5
|
|
|
$
|
1.9
|
|
|
$
|
1,420.1
|
|
|
$
|
1,262.2
|
|
|
$
|
131.9
|
|
|
$
|
5.5
|
|
|
$
|
1,399.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
26 weeks ended August 4, 2018
|
|
26 weeks ended July 29, 2017
|
||||||||||||||||||||||||||||
(in millions)
|
North America
|
|
International
|
|
Other
|
|
Consolidated
|
|
North America
|
|
International
|
|
Other
|
|
Consolidated
|
||||||||||||||||
Sales by channel:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Store
|
$
|
2,363.9
|
|
|
$
|
234.0
|
|
|
$
|
—
|
|
|
$
|
2,597.9
|
|
|
$
|
2,394.8
|
|
|
$
|
233.0
|
|
|
$
|
—
|
|
|
$
|
2,627.8
|
|
E-commerce
(1)
|
270.6
|
|
|
26.2
|
|
|
—
|
|
|
296.8
|
|
|
141.8
|
|
|
21.4
|
|
|
—
|
|
|
163.2
|
|
||||||||
Other
|
—
|
|
|
—
|
|
|
6.0
|
|
|
6.0
|
|
|
—
|
|
|
—
|
|
|
12.0
|
|
|
12.0
|
|
||||||||
Total sales
|
$
|
2,634.5
|
|
|
$
|
260.2
|
|
|
$
|
6.0
|
|
|
$
|
2,900.7
|
|
|
$
|
2,536.6
|
|
|
$
|
254.4
|
|
|
$
|
12.0
|
|
|
$
|
2,803.0
|
|
(1)
|
North America includes
$54.4 million
and
$107.7 million
in the
13 and 26 weeks ended August 4, 2018
, respectively, from James Allen which was acquired during the third quarter of Fiscal 2018. See Note
5
for additional information regarding the acquisition.
|
(in millions)
|
August 4, 2018
|
|
February 3, 2018
|
|
July 29, 2017
|
||||||
Deferred ESP selling costs
|
|
|
|
|
|
||||||
Other current assets
|
$
|
30.3
|
|
|
$
|
30.9
|
|
|
$
|
29.7
|
|
Other assets
|
88.4
|
|
|
89.5
|
|
|
87.2
|
|
|||
Total deferred ESP selling costs
|
$
|
118.7
|
|
|
$
|
120.4
|
|
|
$
|
116.9
|
|
(in millions)
|
August 4, 2018
|
|
February 3, 2018
|
|
July 29, 2017
|
||||||
ESP deferred revenue
|
$
|
906.6
|
|
|
$
|
916.1
|
|
|
$
|
902.2
|
|
Voucher promotions and other
|
33.0
|
|
|
41.4
|
|
|
18.9
|
|
|||
Total deferred revenue
|
$
|
939.6
|
|
|
$
|
957.5
|
|
|
$
|
921.1
|
|
|
|
|
|
|
|
||||||
Disclosed as:
|
|
|
|
|
|
||||||
Current liabilities
|
$
|
276.3
|
|
|
$
|
288.6
|
|
|
$
|
262.3
|
|
Non-current liabilities
|
663.3
|
|
|
668.9
|
|
|
658.8
|
|
|||
Total deferred revenue
|
$
|
939.6
|
|
|
$
|
957.5
|
|
|
$
|
921.1
|
|
|
13 weeks ended
|
|
26 weeks ended
|
||||||||||||
(in millions)
|
August 4, 2018
|
|
July 29, 2017
|
|
August 4, 2018
|
|
July 29, 2017
|
||||||||
ESP deferred revenue, beginning of period
|
$
|
913.5
|
|
|
$
|
903.7
|
|
|
$
|
916.1
|
|
|
$
|
905.6
|
|
Plans sold
(1)
|
90.9
|
|
|
96.8
|
|
|
186.9
|
|
|
193.4
|
|
||||
Revenue recognized
|
(97.8
|
)
|
|
(98.3
|
)
|
|
(196.4
|
)
|
|
(196.8
|
)
|
||||
ESP deferred revenue, end of period
|
$
|
906.6
|
|
|
$
|
902.2
|
|
|
$
|
906.6
|
|
|
$
|
902.2
|
|
(1)
|
Includes impact of foreign exchange translation.
|
(in millions)
|
Fair values
|
||
Cash and cash equivalents
|
$
|
47.3
|
|
Inventories
|
12.1
|
|
|
Other current assets
|
9.7
|
|
|
Property, plant and equipment
|
3.5
|
|
|
Intangible assets:
|
|
||
Trade names
|
70.6
|
|
|
Technology-related
|
4.2
|
|
|
Current liabilities
|
(42.4
|
)
|
|
Deferred tax liabilities
|
(25.1
|
)
|
|
Fair value of net assets acquired
|
79.9
|
|
|
Goodwill
|
299.1
|
|
|
Total consideration transferred
|
$
|
379.0
|
|
|
13 weeks ended
|
|
26 weeks ended
|
||||||||||||
(in millions)
|
August 4, 2018
|
|
July 29, 2017
|
|
August 4, 2018
|
|
July 29, 2017
|
||||||||
Sales:
|
|
|
|
|
|
|
|
||||||||
North America segment
|
$
|
1,286.7
|
|
|
$
|
1,262.2
|
|
|
$
|
2,634.5
|
|
|
$
|
2,536.6
|
|
International segment
|
131.5
|
|
|
131.9
|
|
|
260.2
|
|
|
254.4
|
|
||||
Other
|
1.9
|
|
|
5.5
|
|
|
6.0
|
|
|
12.0
|
|
||||
Total sales
|
$
|
1,420.1
|
|
|
$
|
1,399.6
|
|
|
$
|
2,900.7
|
|
|
$
|
2,803.0
|
|
|
|
|
|
|
|
|
|
||||||||
Operating (loss) income:
|
|
|
|
|
|
|
|
||||||||
North America segment
(1)
|
$
|
(4.2
|
)
|
|
$
|
161.6
|
|
|
$
|
(541.5
|
)
|
|
$
|
296.4
|
|
International segment
(2)
|
(6.1
|
)
|
|
2.3
|
|
|
(13.7
|
)
|
|
(0.2
|
)
|
||||
Other
(3)
|
(47.8
|
)
|
|
(28.3
|
)
|
|
(77.1
|
)
|
|
(45.3
|
)
|
||||
Total operating (loss) income
|
$
|
(58.1
|
)
|
|
$
|
135.6
|
|
|
$
|
(632.3
|
)
|
|
$
|
250.9
|
|
(1)
|
Operating (loss) income during the
13 weeks ended August 4, 2018
includes
$53.7 million
and
$19.4 million
related to inventory charges recorded in conjunction with the Company’s restructuring activities and valuation losses related to the sale of eligible non-prime in-house accounts receivable, respectively. Operating (loss) income during the
26 weeks ended August 4, 2018
includes
$448.7 million
,
$53.7 million
and
$160.4 million
related to the goodwill and intangible impairments recognized in the first quarter, inventory charges recorded in conjunction with the Company’s restructuring activities, and valuation losses related to the sale of eligible non-prime in-house accounts receivable, respectively. See Note
15
, Note
7
and Note
4
for additional information.
|
(2)
|
Operating (loss) income during the
13 and 26 weeks ended August 4, 2018
includes
$3.8 million
related to inventory charges recorded in conjunction with the Company’s restructuring activities. See Note
7
for additional information.
|
(3)
|
Operating (loss) income during the
13 weeks ended August 4, 2018
includes
$25.3 million
and
$4.5 million
related to charges recorded in conjunction with the Company’s restructuring activities, including inventory charges, and transaction costs associated with the sale of the non-prime in-house accounts receivable, respectively. Operating (loss) income during the
26 weeks ended August 4, 2018
includes
$31.8 million
and
$6.6 million
related to charges recorded in conjunction with the Company’s restructuring activities including inventory charges, and transaction costs associated with the sale of the non-prime in-house accounts receivable, respectively. See Note
7
and Note
4
for additional information.
|
(in millions)
|
August 4, 2018
|
|
February 3, 2018
|
|
July 29, 2017
|
||||||
Total assets:
|
|
|
|
|
|
||||||
North America segment
|
$
|
4,171.9
|
|
|
$
|
5,309.0
|
|
|
$
|
5,826.3
|
|
International segment
|
366.6
|
|
|
420.3
|
|
|
384.8
|
|
|||
Other
|
202.3
|
|
|
110.3
|
|
|
102.7
|
|
|||
Total assets
|
$
|
4,740.8
|
|
|
$
|
5,839.6
|
|
|
$
|
6,313.8
|
|
|
|
|
13 weeks ended
|
|
26 weeks ended
|
||||||||||||
(in millions)
|
Income statement location
|
|
August 4, 2018
|
|
July 29, 2017
|
|
August 4, 2018
|
|
July 29, 2017
|
||||||||
Inventory charges
(1)
|
Restructuring charges - cost of sales
|
|
$
|
63.2
|
|
|
$
|
—
|
|
|
$
|
63.2
|
|
|
$
|
—
|
|
Other Plan related expenses
|
Restructuring charges
|
|
19.6
|
|
|
—
|
|
|
26.1
|
|
|
—
|
|
||||
Total Signet Path to Brilliance Plan expenses
|
|
|
$
|
82.8
|
|
|
$
|
—
|
|
|
$
|
89.3
|
|
|
$
|
—
|
|
(1)
|
See Note 14 for additional information related to inventory and inventory reserves.
|
(in millions, except conversion rate and conversion price)
|
August 4, 2018
|
|
February 3, 2018
|
|
July 29, 2017
|
||||||
Conversion rate
|
11.1190
|
|
|
10.9409
|
|
|
10.7707
|
|
|||
Conversion price
|
$
|
89.9361
|
|
|
$
|
91.4002
|
|
|
$
|
92.8445
|
|
Potential impact of preferred shares if-converted to common shares
|
6.9
|
|
|
6.8
|
|
|
6.7
|
|
|||
Liquidation preference
|
$
|
632.8
|
|
|
$
|
632.8
|
|
|
$
|
632.8
|
|
|
|
|
26 weeks ended August 4, 2018
|
|
26 weeks ended July 29, 2017
|
||||||||||||||||||||
(in millions, except per share amounts)
|
Amount
authorized |
|
Shares
repurchased |
|
Amount
repurchased |
|
Average
repurchase price per share |
|
Shares
repurchased |
|
Amount
repurchased |
|
Average
repurchase price per share |
||||||||||||
2017 Program
(1)
|
$
|
600.0
|
|
|
7.5
|
|
|
$
|
434.4
|
|
|
$
|
57.64
|
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
||
2016 Program
(2)
|
$
|
1,375.0
|
|
|
1.3
|
|
|
$
|
50.6
|
|
|
$
|
39.76
|
|
|
8.1
|
|
|
$
|
460.0
|
|
|
$
|
56.91
|
|
Total
|
|
|
8.8
|
|
|
$
|
485.0
|
|
|
$
|
55.06
|
|
|
8.1
|
|
|
$
|
460.0
|
|
|
$
|
56.91
|
|
(1)
|
The 2017 Program had
$165.6 million
remaining as of
August 4, 2018
.
|
(2)
|
The 2016 Program was completed in March 2018.
|
n/a
|
Not applicable.
|
|
Fiscal 2019
|
|
Fiscal 2018
|
||||||||||||
(in millions, except per share amounts)
|
Cash dividend per share
|
|
Total
dividends |
|
Cash dividend
per share |
|
Total
dividends |
||||||||
First quarter
|
$
|
0.37
|
|
|
$
|
21.8
|
|
|
$
|
0.31
|
|
|
$
|
21.3
|
|
Second quarter
(1)
|
0.37
|
|
|
19.2
|
|
|
0.31
|
|
|
18.7
|
|
||||
Total
|
$
|
0.74
|
|
|
$
|
41.0
|
|
|
$
|
0.62
|
|
|
$
|
40.0
|
|
(1)
|
Signet’s dividend policy for common shares results in the dividend payment date being a quarter in arrears from the declaration date. As a result, as of
August 4, 2018
and
July 29, 2017
,
$19.2 million
and
$18.7 million
, respectively, has been recorded in accrued expenses and other current liabilities in the condensed consolidated balance sheets reflecting the cash dividends on common shares declared for the
second
quarter of
Fiscal 2019
and
Fiscal 2018
, respectively.
|
|
Fiscal 2019
|
|
Fiscal 2018
|
||||
(in millions)
|
Total cash
dividends |
|
Total cash
dividends |
||||
First quarter
|
$
|
7.8
|
|
|
$
|
7.8
|
|
Second quarter
(1)
|
7.8
|
|
|
7.8
|
|
||
Total
|
$
|
15.6
|
|
|
$
|
15.6
|
|
(1)
|
Signet’s preferred shares dividends results in the dividend payment date being a quarter in arrears from the declaration date. As a result, as of
August 4, 2018
and
July 29, 2017
,
$7.8 million
and
$7.8 million
, respectively, has been recorded in accrued expenses and other current liabilities in the condensed consolidated balance sheets reflecting the cash dividends on preferred shares declared for the
second
quarter of
Fiscal 2019
and
Fiscal 2018
, respectively.
|
|
13 weeks ended
|
|
26 weeks ended
|
||||||||||||
(in millions, except per share amounts)
|
August 4, 2018
|
|
July 29, 2017
|
|
August 4, 2018
|
|
July 29, 2017
|
||||||||
Numerator:
|
|
|
|
|
|
|
|
||||||||
Net (loss) income attributable to common shareholders
|
$
|
(31.2
|
)
|
|
$
|
85.2
|
|
|
$
|
(536.0
|
)
|
|
$
|
155.5
|
|
Denominator:
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding
|
56.1
|
|
|
63.8
|
|
|
57.8
|
|
|
65.9
|
|
||||
EPS – basic
|
$
|
(0.56
|
)
|
|
$
|
1.34
|
|
|
$
|
(9.27
|
)
|
|
$
|
2.36
|
|
|
13 weeks ended
|
|
26 weeks ended
|
||||||||||||
(in millions, except per share amounts)
|
August 4, 2018
|
|
July 29, 2017
|
|
August 4, 2018
|
|
July 29, 2017
|
||||||||
Numerator:
|
|
|
|
|
|
|
|
||||||||
Net (loss) income attributable to common shareholders
|
$
|
(31.2
|
)
|
|
$
|
85.2
|
|
|
$
|
(536.0
|
)
|
|
$
|
155.5
|
|
Add: Dividends on preferred shares
|
—
|
|
|
8.2
|
|
|
—
|
|
|
—
|
|
||||
Numerator for diluted EPS
|
$
|
(31.2
|
)
|
|
$
|
93.4
|
|
|
$
|
(536.0
|
)
|
|
$
|
155.5
|
|
|
|
|
|
|
|
|
|
||||||||
Denominator:
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding
|
56.1
|
|
|
63.8
|
|
|
57.8
|
|
|
65.9
|
|
||||
Plus: Dilutive effect of share awards
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
||||
Plus: Dilutive effect of preferred shares
|
—
|
|
|
6.7
|
|
|
—
|
|
|
—
|
|
||||
Diluted weighted average common shares outstanding
|
56.1
|
|
|
70.5
|
|
|
57.8
|
|
|
66.0
|
|
||||
|
|
|
|
|
|
|
|
||||||||
EPS – diluted
|
$
|
(0.56
|
)
|
|
$
|
1.33
|
|
|
$
|
(9.27
|
)
|
|
$
|
2.36
|
|
|
13 weeks ended
|
|
26 weeks ended
|
||||||||
(in millions)
|
August 4, 2018
|
|
July 29, 2017
|
|
August 4, 2018
|
|
July 29, 2017
|
||||
Share awards
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
Potential impact of preferred shares
|
6.8
|
|
|
—
|
|
|
6.8
|
|
|
6.7
|
|
Total anti-dilutive shares
|
7.1
|
|
|
—
|
|
|
7.1
|
|
|
6.7
|
|
|
|
|
|
|
|
|
Pension plan
|
|
|
||||||||||||||
(in millions)
|
Foreign
currency translation |
|
Losses on available-for-sale securities, net
|
|
Gains (losses)
on cash flow hedges |
|
Actuarial
losses |
|
Prior
service credits |
|
Accumulated
other comprehensive loss |
||||||||||||
Balance at February 3, 2018
|
$
|
(212.5
|
)
|
|
$
|
(0.1
|
)
|
|
$
|
0.7
|
|
|
$
|
(51.1
|
)
|
|
$
|
2.4
|
|
|
$
|
(260.6
|
)
|
Other comprehensive income (loss) (“OCI”) before reclassifications
|
(37.0
|
)
|
|
0.3
|
|
|
(1.5
|
)
|
|
(6.5
|
)
|
|
—
|
|
|
(44.7
|
)
|
||||||
Amounts reclassified from AOCI to net income
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
|
0.3
|
|
|
—
|
|
|
(0.2
|
)
|
||||||
Impact from adoption of new accounting pronouncements
(1)
|
—
|
|
|
(0.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.8
|
)
|
||||||
Net current period OCI
|
(37.0
|
)
|
|
(0.5
|
)
|
|
(2.0
|
)
|
|
(6.2
|
)
|
|
—
|
|
|
(45.7
|
)
|
||||||
Balance at August 4, 2018
|
$
|
(249.5
|
)
|
|
$
|
(0.6
|
)
|
|
$
|
(1.3
|
)
|
|
$
|
(57.3
|
)
|
|
$
|
2.4
|
|
|
$
|
(306.3
|
)
|
(1)
|
Adjustment reflects the reclassification of unrealized gains related to the Company’s equity security investments as of February 3, 2018 from AOCI into retained earnings associated with the adoption of ASU 2016-1.
|
|
Amounts reclassified from AOCI
|
|
|
|||||||||||||||
|
13 weeks ended
|
|
26 weeks ended
|
|
|
|||||||||||||
(in millions)
|
August 4, 2018
|
|
July 29, 2017
|
|
August 4, 2018
|
|
July 29, 2017
|
|
Income statement caption
|
|||||||||
(Gains) losses on cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|||||||||
Foreign currency contracts
|
$
|
0.4
|
|
|
$
|
(1.2
|
)
|
|
$
|
0.7
|
|
|
$
|
(2.2
|
)
|
|
Cost of sales (see Note 16)
|
|
Interest rate swaps
|
(0.4
|
)
|
|
0.1
|
|
|
(0.7
|
)
|
|
0.4
|
|
|
Interest expense, net (see Note 16)
|
|||||
Commodity contracts
|
(0.4
|
)
|
|
(0.3
|
)
|
|
(0.9
|
)
|
|
(1.5
|
)
|
|
Cost of sales (see Note 16)
|
|||||
Total before income tax
|
(0.4
|
)
|
|
(1.4
|
)
|
|
(0.9
|
)
|
|
(3.3
|
)
|
|
|
|||||
Income taxes
|
0.2
|
|
|
0.3
|
|
|
0.4
|
|
|
0.8
|
|
|
|
|||||
Net of tax
|
(0.2
|
)
|
|
(1.1
|
)
|
|
(0.5
|
)
|
|
(2.5
|
)
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|||||||||
Defined benefit pension plan items:
|
|
|
|
|
|
|
|
|
|
|||||||||
Amortization of unrecognized actuarial losses
|
—
|
|
|
0.8
|
|
|
0.3
|
|
|
1.5
|
|
|
Other non-operating income
|
|||||
Amortization of unrecognized net prior service credits
|
0.1
|
|
|
(0.5
|
)
|
|
—
|
|
|
(0.9
|
)
|
|
Other non-operating income
|
|||||
Total before income tax
|
0.1
|
|
|
0.3
|
|
|
0.3
|
|
|
0.6
|
|
|
|
|||||
Income taxes
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
(0.1
|
)
|
|
|
|||||
Net of tax
|
0.1
|
|
|
0.2
|
|
|
0.3
|
|
|
0.5
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|||||||||
Total reclassifications, net of tax
|
$
|
(0.1
|
)
|
|
$
|
(0.9
|
)
|
|
$
|
(0.2
|
)
|
|
$
|
(2.0
|
)
|
|
|
|
26 weeks ended
|
||||
|
August 4, 2018
|
|
July 29, 2017
|
||
Effective tax rate
|
32.2
|
%
|
|
23.0
|
%
|
Discrete items recognized
|
(12.2
|
)%
|
|
0.5
|
%
|
Effective tax rate recognized in income statement
|
20.0
|
%
|
|
23.5
|
%
|
(in millions)
|
August 4, 2018
|
|
February 3, 2018
|
|
July 29, 2017
|
||||||
Accounts receivable by portfolio segment, net:
|
|
|
|
|
|
||||||
Legacy Sterling Jewelers customer in-house finance receivables
|
$
|
—
|
|
|
$
|
649.4
|
|
|
$
|
622.6
|
|
Legacy Zale customer in-house finance receivables
|
$
|
—
|
|
|
33.5
|
|
|
34.0
|
|
||
North America customer in-house finance receivables
|
$
|
—
|
|
|
$
|
682.9
|
|
|
$
|
656.6
|
|
Other accounts receivable
|
6.5
|
|
|
9.6
|
|
|
7.9
|
|
|||
Total accounts receivable, net
|
$
|
6.5
|
|
|
$
|
692.5
|
|
|
$
|
664.5
|
|
|
|
|
|
|
|
||||||
Accounts receivable, held for sale
|
$
|
4.6
|
|
|
$
|
—
|
|
|
$
|
1,055.6
|
|
|
26 weeks ended
|
||||||
(in millions)
|
August 4, 2018
|
(1)
|
July 29, 2017
|
||||
Beginning balance
|
$
|
(113.5
|
)
|
|
$
|
(138.7
|
)
|
Charge-offs, net
|
56.3
|
|
|
103.9
|
|
||
Recoveries
|
4.2
|
|
|
17.8
|
|
||
Provision
|
(54.6
|
)
|
|
(118.0
|
)
|
||
Reversal of allowance on receivables previously held for sale
|
107.6
|
|
|
20.7
|
|
||
Ending balance
|
$
|
—
|
|
|
$
|
(114.3
|
)
|
Ending receivable balance evaluated for impairment
|
—
|
|
|
736.9
|
|
||
Sterling Jewelers customer in-house finance receivables, net
|
$
|
—
|
|
|
$
|
622.6
|
|
(1)
|
Amounts reflected for Fiscal 2019 represent activity for the period prior to the reclassification of the in-house finance receivables portfolio to held for sale during the first quarter of Fiscal 2019 when the allowance was reversed.
|
|
|
February 3, 2018
|
||||||
(in millions)
|
|
Gross
|
|
Valuation
allowance |
||||
Performing (accrual status):
|
|
|
|
|
||||
0 - 120 days past due
|
|
$
|
703.4
|
|
|
$
|
(54.0
|
)
|
121 or more days past due
|
|
59.5
|
|
|
(59.5
|
)
|
||
|
|
$
|
762.9
|
|
|
$
|
(113.5
|
)
|
|
|
|
|
|
||||
Valuation allowance as a % of ending receivable balance
|
|
|
|
|
14.9
|
%
|
|
|
July 29, 2017
|
||||||
(in millions)
|
|
Gross
|
|
Valuation
allowance |
||||
Performing (accrual status):
|
|
|
|
|
||||
Current, aged 0 – 30 days
|
|
$
|
1,394.2
|
|
|
$
|
(42.8
|
)
|
Past due, aged 31 – 60 days
|
|
264.6
|
|
|
(8.6
|
)
|
||
Past due, aged 61 – 90 days
|
|
52.5
|
|
|
(2.4
|
)
|
||
Non Performing:
|
|
|
|
|
||||
Past due, aged more than 90 days
|
|
81.2
|
|
|
(81.2
|
)
|
||
|
|
$
|
1,792.5
|
|
|
$
|
(135.0
|
)
|
|
|
|
|
|
|
|
||
Valuation allowance as a % of ending receivable balance
|
|
|
|
|
7.5
|
%
|
(in millions)
|
August 4, 2018
|
|
February 3, 2018
|
|
July 29, 2017
|
||||||
Raw materials
|
$
|
76.2
|
|
|
$
|
72.0
|
|
|
$
|
56.1
|
|
Finished goods
|
2,287.6
|
|
|
2,208.5
|
|
|
2,226.0
|
|
|||
Total inventories
|
$
|
2,363.8
|
|
|
$
|
2,280.5
|
|
|
$
|
2,282.1
|
|
(in millions)
|
|
North America
|
|
Other
|
|
Total
|
||||||
Balance at January 28, 2017
|
|
$
|
514.0
|
|
|
$
|
3.6
|
|
|
$
|
517.6
|
|
Acquisitions
|
|
301.7
|
|
|
—
|
|
|
301.7
|
|
|||
Impact of foreign exchange and other adjustments
|
|
2.4
|
|
|
—
|
|
|
2.4
|
|
|||
Balance at February 3, 2018
|
|
818.1
|
|
|
3.6
|
|
|
821.7
|
|
|||
Impairment
|
|
(308.8
|
)
|
|
—
|
|
|
(308.8
|
)
|
|||
Impact of foreign exchange and other adjustments
(1)
|
|
(3.9
|
)
|
|
—
|
|
|
(3.9
|
)
|
|||
Balance at August 4, 2018
|
|
$
|
505.4
|
|
|
$
|
3.6
|
|
|
$
|
509.0
|
|
(1)
|
During the 26 weeks ended May 5, 2018, other adjustments include a purchase price accounting adjustment of
$2.6 million
related to a revised valuation of acquired intangible assets from the R2Net acquisition. Refer to Note
5
for additional details.
|
|
|
August 4, 2018
|
|
February 3, 2018
|
|
July 29, 2017
|
||||||||||||||||||||||||||||||||||
(in millions)
|
|
Gross
carrying amount |
|
Accumulated
amortization |
|
Accumulated impairment loss
|
|
Net
carrying amount |
|
Gross
carrying amount |
|
Accumulated
amortization |
|
Net
carrying amount |
|
Gross
carrying amount |
|
Accumulated
amortization |
|
Net
carrying amount |
||||||||||||||||||||
Intangible assets, net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Definite-lived intangible assets
|
|
53.4
|
|
|
(48.6
|
)
|
|
—
|
|
|
4.8
|
|
|
49.8
|
|
|
(46.7
|
)
|
|
3.1
|
|
|
49.8
|
|
|
(43.6
|
)
|
|
6.2
|
|
||||||||||
Indefinite-lived intangible assets
|
|
476.2
|
|
|
—
|
|
|
(139.7
|
)
|
|
336.5
|
|
|
478.4
|
|
|
—
|
|
|
478.4
|
|
|
407.7
|
|
|
—
|
|
|
407.7
|
|
||||||||||
Total intangible assets, net
|
|
$
|
529.6
|
|
|
$
|
(48.6
|
)
|
|
$
|
(139.7
|
)
|
|
$
|
341.3
|
|
|
$
|
528.2
|
|
|
$
|
(46.7
|
)
|
|
$
|
481.5
|
|
|
$
|
457.5
|
|
|
$
|
(43.6
|
)
|
|
$
|
413.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Intangible liabilities, net
|
|
$
|
(114.0
|
)
|
|
$
|
88.8
|
|
|
$
|
—
|
|
|
$
|
(25.2
|
)
|
|
$
|
(114.5
|
)
|
|
$
|
85.2
|
|
|
$
|
(29.3
|
)
|
|
$
|
(114.5
|
)
|
|
$
|
80.5
|
|
|
$
|
(34.0
|
)
|
|
Fair value of derivative assets
|
||||||||||||
(in millions)
|
Balance sheet location
|
|
August 4, 2018
|
|
February 3, 2018
|
|
July 29, 2017
|
||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
||||||
Foreign currency contracts
|
Other current assets
|
|
$
|
0.8
|
|
|
$
|
—
|
|
|
$
|
0.1
|
|
Commodity contracts
|
Other current assets
|
|
—
|
|
|
—
|
|
|
1.4
|
|
|||
Interest rate swaps
|
Other assets
|
|
1.9
|
|
|
2.2
|
|
|
0.7
|
|
|||
Total derivative assets
|
|
|
$
|
2.7
|
|
|
$
|
2.2
|
|
|
$
|
2.2
|
|
|
|
|
|
|
|
|
|
||||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
||||||
Foreign currency contracts
|
Other current assets
|
|
0.3
|
|
|
—
|
|
|
0.4
|
|
|||
Total derivative assets
|
|
|
$
|
3.0
|
|
|
$
|
2.2
|
|
|
$
|
2.6
|
|
|
Fair value of derivative liabilities
|
||||||||||||
(in millions)
|
Balance sheet location
|
|
August 4, 2018
|
|
February 3, 2018
|
|
July 29, 2017
|
||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
||||||
Foreign currency contracts
|
Other current liabilities
|
|
$
|
—
|
|
|
$
|
(1.4
|
)
|
|
$
|
(1.0
|
)
|
Commodity contracts
|
Other current liabilities
|
|
(4.1
|
)
|
|
(0.1
|
)
|
|
—
|
|
|||
Commodity contracts
|
Other liabilities
|
|
(0.9
|
)
|
|
—
|
|
|
—
|
|
|||
|
|
|
$
|
(5.0
|
)
|
|
$
|
(1.5
|
)
|
|
$
|
(1.0
|
)
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
||||||
Foreign currency contracts
|
Other current liabilities
|
|
(0.8
|
)
|
|
(0.9
|
)
|
|
(0.1
|
)
|
|||
Total derivative liabilities
|
|
|
$
|
(5.8
|
)
|
|
$
|
(2.4
|
)
|
|
$
|
(1.1
|
)
|
(in millions)
|
August 4, 2018
|
|
February 3, 2018
|
|
July 29, 2017
|
||||||
Foreign currency contracts
|
$
|
0.4
|
|
|
$
|
(2.4
|
)
|
|
$
|
0.6
|
|
Commodity contracts
|
(4.4
|
)
|
|
1.4
|
|
|
1.0
|
|
|||
Interest rate swaps
|
1.9
|
|
|
2.2
|
|
|
0.7
|
|
|||
Gains (losses) recorded in AOCI
|
$
|
(2.1
|
)
|
|
$
|
1.2
|
|
|
$
|
2.3
|
|
|
|
|
13 weeks ended
|
|
26 weeks ended
|
||||||||||||
(in millions)
|
Income statement caption
|
|
August 4, 2018
|
|
July 29, 2017
|
|
August 4, 2018
|
|
July 29, 2017
|
||||||||
(Losses) gains recorded in AOCI, beginning of period
|
|
|
$
|
(0.8
|
)
|
|
$
|
2.1
|
|
|
$
|
(2.4
|
)
|
|
$
|
4.1
|
|
Current period gains (losses) recognized in OCI
|
|
|
0.8
|
|
|
(0.3
|
)
|
|
2.1
|
|
|
(1.3
|
)
|
||||
Losses (gains) reclassified from AOCI to net income
|
Cost of sales
|
|
0.4
|
|
|
(1.2
|
)
|
|
0.7
|
|
|
(2.2
|
)
|
||||
Gains recorded in AOCI, end of period
|
|
|
$
|
0.4
|
|
|
$
|
0.6
|
|
|
$
|
0.4
|
|
|
$
|
0.6
|
|
|
|
|
13 weeks ended
|
|
26 weeks ended
|
||||||||||||
(in millions)
|
Income statement caption
|
|
August 4, 2018
|
|
July 29, 2017
|
|
August 4, 2018
|
|
July 29, 2017
|
||||||||
Gains (losses) recorded in AOCI, beginning of period
|
|
|
$
|
1.1
|
|
|
$
|
2.1
|
|
|
$
|
1.4
|
|
|
$
|
(2.1
|
)
|
Current period gains (losses) recognized in OCI
|
|
|
(5.1
|
)
|
|
(0.8
|
)
|
|
(4.9
|
)
|
|
4.6
|
|
||||
Gains reclassified from AOCI to net income
|
Cost of sales
|
|
(0.4
|
)
|
|
(0.3
|
)
|
|
(0.9
|
)
|
|
(1.5
|
)
|
||||
Gains (losses) recorded in AOCI, end of period
|
|
|
$
|
(4.4
|
)
|
|
$
|
1.0
|
|
|
$
|
(4.4
|
)
|
|
$
|
1.0
|
|
|
|
|
13 weeks ended
|
|
26 weeks ended
|
||||||||||||
(in millions)
|
Income statement caption
|
|
August 4, 2018
|
|
July 29, 2017
|
|
August 4, 2018
|
|
July 29, 2017
|
||||||||
Gains recorded in AOCI, beginning of period
|
|
|
$
|
2.3
|
|
|
$
|
0.8
|
|
|
$
|
2.2
|
|
|
$
|
0.4
|
|
Current period gains (losses) recognized in OCI
|
|
|
—
|
|
|
(0.2
|
)
|
|
0.4
|
|
|
(0.1
|
)
|
||||
(Gains) losses reclassified from AOCI to net income
|
Interest expense, net
|
|
(0.4
|
)
|
|
0.1
|
|
|
(0.7
|
)
|
|
0.4
|
|
||||
Gains recorded in AOCI, end of period
|
|
|
$
|
1.9
|
|
|
$
|
0.7
|
|
|
$
|
1.9
|
|
|
$
|
0.7
|
|
|
|
|
13 weeks ended
|
|
26 weeks ended
|
||||||||||||
(in millions)
|
Income statement caption
|
|
August 4, 2018
|
|
July 29, 2017
|
|
August 4, 2018
|
|
July 29, 2017
|
||||||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency contracts
|
Other operating income,
net |
|
$
|
(5.7
|
)
|
|
$
|
4.9
|
|
|
$
|
(10.5
|
)
|
|
$
|
3.2
|
|
|
August 4, 2018
|
|
February 3, 2018
|
|
July 29, 2017
|
||||||||||||||||||||||||||||||
(in millions)
|
Carrying Value
|
|
Quoted prices in active markets for identical assets
(Level 1) |
|
Significant
other observable inputs (Level 2) |
|
Carrying Value
|
|
Quoted prices in active markets for identical assets
(Level 1) |
|
Significant
other observable inputs (Level 2) |
|
Carrying Value
|
|
Quoted prices in active markets for identical assets
(Level 1) |
|
Significant
other observable inputs (Level 2) |
||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
US Treasury securities
|
$
|
5.1
|
|
|
$
|
5.1
|
|
|
$
|
—
|
|
|
$
|
7.5
|
|
|
$
|
7.5
|
|
|
$
|
—
|
|
|
$
|
7.9
|
|
|
$
|
7.9
|
|
|
$
|
—
|
|
Corporate equity securities
|
2.5
|
|
|
2.5
|
|
|
—
|
|
|
4.5
|
|
|
4.5
|
|
|
—
|
|
|
4.1
|
|
|
4.1
|
|
|
—
|
|
|||||||||
Foreign currency contracts
|
1.1
|
|
|
—
|
|
|
1.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
|
—
|
|
|
0.5
|
|
|||||||||
Commodity contracts
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.4
|
|
|
—
|
|
|
1.4
|
|
|||||||||
Interest rate swaps
|
1.9
|
|
|
—
|
|
|
1.9
|
|
|
2.2
|
|
|
—
|
|
|
2.2
|
|
|
0.7
|
|
|
—
|
|
|
0.7
|
|
|||||||||
US government agency securities
|
2.9
|
|
|
—
|
|
|
2.9
|
|
|
5.1
|
|
|
—
|
|
|
5.1
|
|
|
5.3
|
|
|
—
|
|
|
5.3
|
|
|||||||||
Corporate bonds and notes
|
5.4
|
|
|
—
|
|
|
5.4
|
|
|
10.8
|
|
|
—
|
|
|
10.8
|
|
|
11.2
|
|
|
—
|
|
|
11.2
|
|
|||||||||
Total assets
|
$
|
18.9
|
|
|
$
|
7.6
|
|
|
$
|
11.3
|
|
|
$
|
30.1
|
|
|
$
|
12.0
|
|
|
$
|
18.1
|
|
|
$
|
31.1
|
|
|
$
|
12.0
|
|
|
$
|
19.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Foreign currency contracts
|
$
|
(0.8
|
)
|
|
$
|
—
|
|
|
$
|
(0.8
|
)
|
|
$
|
(2.3
|
)
|
|
$
|
—
|
|
|
$
|
(2.3
|
)
|
|
$
|
(1.1
|
)
|
|
$
|
—
|
|
|
$
|
(1.1
|
)
|
Commodity contracts
|
(5.0
|
)
|
|
—
|
|
|
(5.0
|
)
|
|
(0.1
|
)
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Total liabilities
|
$
|
(5.8
|
)
|
|
$
|
—
|
|
|
$
|
(5.8
|
)
|
|
$
|
(2.4
|
)
|
|
$
|
—
|
|
|
$
|
(2.4
|
)
|
|
$
|
(1.1
|
)
|
|
$
|
—
|
|
|
$
|
(1.1
|
)
|
|
August 4, 2018
|
|
February 3, 2018
|
|
July 29, 2017
|
||||||||||||||||||
(in millions)
|
Carrying
Value |
|
Fair Value
|
|
Carrying
Value |
|
Fair Value
|
|
Carrying
Value |
|
Fair Value
|
||||||||||||
Long-term debt:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Senior notes (Level 2)
|
$
|
394.9
|
|
|
$
|
382.1
|
|
|
$
|
394.5
|
|
|
$
|
396.3
|
|
|
$
|
394.1
|
|
|
$
|
394.7
|
|
Securitization facility (Level 2)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
599.8
|
|
|
600.0
|
|
||||||
Term loan (Level 2)
|
310.5
|
|
|
312.8
|
|
|
323.5
|
|
|
326.2
|
|
|
336.5
|
|
|
339.6
|
|
||||||
Total
|
$
|
705.4
|
|
|
$
|
694.9
|
|
|
$
|
718.0
|
|
|
$
|
722.5
|
|
|
$
|
1,330.4
|
|
|
$
|
1,334.3
|
|
(in millions)
|
August 4, 2018
|
|
February 3, 2018
|
|
July 29, 2017
|
||||||
Debt:
|
|
|
|
|
|
||||||
Senior unsecured notes due 2024, net of unamortized discount
|
$
|
399.0
|
|
|
$
|
398.9
|
|
|
$
|
398.9
|
|
Securitization facility
|
—
|
|
|
—
|
|
|
600.0
|
|
|||
Senior unsecured term loan
|
312.8
|
|
|
326.2
|
|
|
339.6
|
|
|||
Revolving credit facility
|
71.0
|
|
|
—
|
|
|
303.0
|
|
|||
Bank overdrafts
|
6.1
|
|
|
14.2
|
|
|
11.1
|
|
|||
Total debt
|
$
|
788.9
|
|
|
$
|
739.3
|
|
|
$
|
1,652.6
|
|
Less: Current portion of loans and overdrafts
|
(111.4
|
)
|
|
(44.0
|
)
|
|
(939.4
|
)
|
|||
Less: Unamortized capitalized debt issuance fees
|
(6.4
|
)
|
|
(7.1
|
)
|
|
(7.9
|
)
|
|||
Total long-term debt
|
$
|
671.1
|
|
|
$
|
688.2
|
|
|
$
|
705.3
|
|
|
13 weeks ended
|
|
26 weeks ended
|
||||||||||||
(in millions)
|
August 4, 2018
|
|
July 29, 2017
|
|
August 4, 2018
|
|
July 29, 2017
|
||||||||
Warranty reserve, beginning of period
|
$
|
35.6
|
|
|
$
|
39.2
|
|
|
$
|
37.2
|
|
|
$
|
40.0
|
|
Warranty expense
|
4.0
|
|
|
2.5
|
|
|
5.4
|
|
|
4.8
|
|
||||
Utilized
(1)
|
(3.2
|
)
|
|
(2.4
|
)
|
|
(6.2
|
)
|
|
(5.5
|
)
|
||||
Warranty reserve, end of period
|
$
|
36.4
|
|
|
$
|
39.3
|
|
|
$
|
36.4
|
|
|
$
|
39.3
|
|
(1)
|
Includes impact of foreign exchange translation.
|
(in millions)
|
August 4, 2018
|
|
February 3, 2018
|
|
July 29, 2017
|
||||||
Disclosed as:
|
|
|
|
|
|
||||||
Current liabilities
|
$
|
11.2
|
|
|
$
|
11.5
|
|
|
$
|
12.2
|
|
Non-current liabilities
|
25.2
|
|
|
25.7
|
|
|
27.1
|
|
|||
Total warranty reserve
|
$
|
36.4
|
|
|
$
|
37.2
|
|
|
$
|
39.3
|
|
(in millions)
|
Signet
Jewelers Limited |
|
Signet UK
Finance plc |
|
Guarantor
Subsidiaries |
|
Non-
Guarantor Subsidiaries |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Sales
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,296.3
|
|
|
$
|
123.8
|
|
|
$
|
—
|
|
|
$
|
1,420.1
|
|
Cost of sales
|
—
|
|
|
—
|
|
|
(867.3
|
)
|
|
(62.6
|
)
|
|
—
|
|
|
(929.9
|
)
|
||||||
Restructuring charges - cost of sales
|
—
|
|
|
—
|
|
|
(57.5
|
)
|
|
(5.7
|
)
|
|
—
|
|
|
(63.2
|
)
|
||||||
Gross margin
|
—
|
|
|
—
|
|
|
371.5
|
|
|
55.5
|
|
|
—
|
|
|
427.0
|
|
||||||
Selling, general and administrative expenses
|
(0.4
|
)
|
|
—
|
|
|
(407.7
|
)
|
|
(36.7
|
)
|
|
—
|
|
|
(444.8
|
)
|
||||||
Credit transaction, net
|
—
|
|
|
—
|
|
|
(23.9
|
)
|
|
—
|
|
|
—
|
|
|
(23.9
|
)
|
||||||
Restructuring charges
|
—
|
|
|
—
|
|
|
(19.6
|
)
|
|
—
|
|
|
—
|
|
|
(19.6
|
)
|
||||||
Other operating income (loss), net
|
—
|
|
|
—
|
|
|
(1.1
|
)
|
|
4.3
|
|
|
—
|
|
|
3.2
|
|
||||||
Operating (loss) income
|
(0.4
|
)
|
|
—
|
|
|
(80.8
|
)
|
|
23.1
|
|
|
—
|
|
|
(58.1
|
)
|
||||||
Intra-entity interest income (expense)
|
(1.7
|
)
|
|
4.7
|
|
|
(109.1
|
)
|
|
106.1
|
|
|
—
|
|
|
—
|
|
||||||
Interest expense, net
|
—
|
|
|
(4.9
|
)
|
|
(4.6
|
)
|
|
0.1
|
|
|
—
|
|
|
(9.4
|
)
|
||||||
Other non-operating income
|
—
|
|
|
—
|
|
|
0.5
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
||||||
(Loss) income before income taxes
|
(2.1
|
)
|
|
(0.2
|
)
|
|
(194.0
|
)
|
|
129.3
|
|
|
—
|
|
|
(67.0
|
)
|
||||||
Income taxes
|
—
|
|
|
0.1
|
|
|
25.1
|
|
|
18.8
|
|
|
—
|
|
|
44.0
|
|
||||||
Equity in income of subsidiaries
|
(20.9
|
)
|
|
—
|
|
|
(207.8
|
)
|
|
(221.0
|
)
|
|
449.7
|
|
|
—
|
|
||||||
Net (loss) income
|
$
|
(23.0
|
)
|
|
$
|
(0.1
|
)
|
|
$
|
(376.7
|
)
|
|
$
|
(72.9
|
)
|
|
$
|
449.7
|
|
|
$
|
(23.0
|
)
|
Dividends on redeemable convertible preferred shares
|
(8.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8.2
|
)
|
||||||
Net (loss) income attributable to common shareholders
|
$
|
(31.2
|
)
|
|
$
|
(0.1
|
)
|
|
$
|
(376.7
|
)
|
|
$
|
(72.9
|
)
|
|
$
|
449.7
|
|
|
$
|
(31.2
|
)
|
(in millions)
|
Signet
Jewelers Limited |
|
Signet UK
Finance plc |
|
Guarantor
Subsidiaries |
|
Non-
Guarantor Subsidiaries |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Sales
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,322.3
|
|
|
$
|
77.3
|
|
|
$
|
—
|
|
|
$
|
1,399.6
|
|
Cost of sales
|
—
|
|
|
—
|
|
|
(927.8
|
)
|
|
(13.9
|
)
|
|
—
|
|
|
(941.7
|
)
|
||||||
Gross margin
|
—
|
|
|
—
|
|
|
394.5
|
|
|
63.4
|
|
|
—
|
|
|
457.9
|
|
||||||
Selling, general and administrative expenses
|
(0.2
|
)
|
|
—
|
|
|
(377.0
|
)
|
|
(31.8
|
)
|
|
—
|
|
|
(409.0
|
)
|
||||||
Credit transaction, net
|
—
|
|
|
—
|
|
|
14.8
|
|
|
—
|
|
|
—
|
|
|
14.8
|
|
||||||
Other operating income (loss), net
|
—
|
|
|
—
|
|
|
71.7
|
|
|
0.2
|
|
|
—
|
|
|
71.9
|
|
||||||
Operating (loss) income
|
(0.2
|
)
|
|
—
|
|
|
104.0
|
|
|
31.8
|
|
|
—
|
|
|
135.6
|
|
||||||
Intra-entity interest income (expense)
|
—
|
|
|
4.7
|
|
|
(46.4
|
)
|
|
41.7
|
|
|
—
|
|
|
—
|
|
||||||
Interest expense, net
|
—
|
|
|
(5.0
|
)
|
|
(4.7
|
)
|
|
(3.8
|
)
|
|
—
|
|
|
(13.5
|
)
|
||||||
(Loss) income before income taxes
|
(0.2
|
)
|
|
(0.3
|
)
|
|
52.9
|
|
|
69.7
|
|
|
—
|
|
|
122.1
|
|
||||||
Income taxes
|
—
|
|
|
0.1
|
|
|
(21.3
|
)
|
|
(7.5
|
)
|
|
—
|
|
|
(28.7
|
)
|
||||||
Equity in income of subsidiaries
|
93.6
|
|
|
—
|
|
|
21.6
|
|
|
34.2
|
|
|
(149.4
|
)
|
|
—
|
|
||||||
Net income (loss)
|
$
|
93.4
|
|
|
$
|
(0.2
|
)
|
|
$
|
53.2
|
|
|
$
|
96.4
|
|
|
$
|
(149.4
|
)
|
|
$
|
93.4
|
|
Dividends on redeemable convertible preferred shares
|
(8.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8.2
|
)
|
||||||
Net income (loss) attributable to common shareholders
|
$
|
85.2
|
|
|
$
|
(0.2
|
)
|
|
$
|
53.2
|
|
|
$
|
96.4
|
|
|
$
|
(149.4
|
)
|
|
$
|
85.2
|
|
(in millions)
|
Signet
Jewelers Limited |
|
Signet UK
Finance plc |
|
Guarantor
Subsidiaries |
|
Non-
Guarantor Subsidiaries |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Sales
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,652.8
|
|
|
$
|
247.9
|
|
|
$
|
—
|
|
|
$
|
2,900.7
|
|
Cost of sales
|
—
|
|
|
—
|
|
|
(1,803.6
|
)
|
|
(122.1
|
)
|
|
—
|
|
|
(1,925.7
|
)
|
||||||
Restructuring charges - cost of sales
|
—
|
|
|
—
|
|
|
(57.5
|
)
|
|
(5.7
|
)
|
|
—
|
|
|
(63.2
|
)
|
||||||
Gross margin
|
—
|
|
|
—
|
|
|
791.7
|
|
|
120.1
|
|
|
—
|
|
|
911.8
|
|
||||||
Selling, general and administrative expenses
|
(0.5
|
)
|
|
—
|
|
|
(852.1
|
)
|
|
(75.0
|
)
|
|
—
|
|
|
(927.6
|
)
|
||||||
Credit transaction, net
|
—
|
|
|
—
|
|
|
(167.0
|
)
|
|
—
|
|
|
—
|
|
|
(167.0
|
)
|
||||||
Restructuring charges
|
—
|
|
|
—
|
|
|
(25.1
|
)
|
|
(1.0
|
)
|
|
—
|
|
|
(26.1
|
)
|
||||||
Goodwill and intangible impairments
|
—
|
|
|
—
|
|
|
(448.7
|
)
|
|
—
|
|
|
—
|
|
|
(448.7
|
)
|
||||||
Other operating income (loss), net
|
(0.1
|
)
|
|
—
|
|
|
21.5
|
|
|
3.9
|
|
|
—
|
|
|
25.3
|
|
||||||
Operating (loss) income
|
(0.6
|
)
|
|
—
|
|
|
(679.7
|
)
|
|
48.0
|
|
|
—
|
|
|
(632.3
|
)
|
||||||
Intra-entity interest income (expense)
|
(2.4
|
)
|
|
9.4
|
|
|
(153.9
|
)
|
|
146.9
|
|
|
—
|
|
|
—
|
|
||||||
Interest expense, net
|
—
|
|
|
(9.8
|
)
|
|
(8.6
|
)
|
|
0.1
|
|
|
—
|
|
|
(18.3
|
)
|
||||||
Other non-operating income
|
—
|
|
|
—
|
|
|
1.1
|
|
|
—
|
|
|
—
|
|
|
1.1
|
|
||||||
(Loss) income before income taxes
|
(3.0
|
)
|
|
(0.4
|
)
|
|
(841.1
|
)
|
|
195.0
|
|
|
—
|
|
|
(649.5
|
)
|
||||||
Income taxes
|
—
|
|
|
0.1
|
|
|
104.5
|
|
|
25.3
|
|
|
—
|
|
|
129.9
|
|
||||||
Equity in income of subsidiaries
|
(516.6
|
)
|
|
—
|
|
|
(772.9
|
)
|
|
(788.9
|
)
|
|
2,078.4
|
|
|
—
|
|
||||||
Net income (loss)
|
$
|
(519.6
|
)
|
|
$
|
(0.3
|
)
|
|
$
|
(1,509.5
|
)
|
|
$
|
(568.6
|
)
|
|
$
|
2,078.4
|
|
|
$
|
(519.6
|
)
|
Dividends on redeemable convertible preferred shares
|
(16.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(16.4
|
)
|
||||||
Net income (loss) attributable to common shareholders
|
$
|
(536.0
|
)
|
|
$
|
(0.3
|
)
|
|
$
|
(1,509.5
|
)
|
|
$
|
(568.6
|
)
|
|
$
|
2,078.4
|
|
|
$
|
(536.0
|
)
|
(in millions)
|
Signet
Jewelers Limited |
|
Signet UK
Finance plc |
|
Guarantor
Subsidiaries |
|
Non-
Guarantor Subsidiaries |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Sales
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,647.5
|
|
|
$
|
155.5
|
|
|
$
|
—
|
|
|
$
|
2,803.0
|
|
Cost of sales
|
—
|
|
|
—
|
|
|
(1,823.2
|
)
|
|
(30.7
|
)
|
|
—
|
|
|
(1,853.9
|
)
|
||||||
Gross margin
|
—
|
|
|
—
|
|
|
824.3
|
|
|
124.8
|
|
|
—
|
|
|
949.1
|
|
||||||
Selling, general and administrative expenses
|
(0.4
|
)
|
|
—
|
|
|
(798.5
|
)
|
|
(62.9
|
)
|
|
—
|
|
|
(861.8
|
)
|
||||||
Credit transaction, net
|
—
|
|
|
—
|
|
|
14.8
|
|
|
—
|
|
|
—
|
|
|
14.8
|
|
||||||
Other operating income (loss), net
|
—
|
|
|
—
|
|
|
148.9
|
|
|
(0.1
|
)
|
|
—
|
|
|
148.8
|
|
||||||
Operating (loss) income
|
(0.4
|
)
|
|
—
|
|
|
189.5
|
|
|
61.8
|
|
|
—
|
|
|
250.9
|
|
||||||
Intra-entity interest income (expense)
|
—
|
|
|
9.4
|
|
|
(91.8
|
)
|
|
82.4
|
|
|
—
|
|
|
—
|
|
||||||
Interest expense, net
|
—
|
|
|
(9.9
|
)
|
|
(8.8
|
)
|
|
(7.4
|
)
|
|
—
|
|
|
(26.1
|
)
|
||||||
(Loss) income before income taxes
|
(0.4
|
)
|
|
(0.5
|
)
|
|
88.9
|
|
|
136.8
|
|
|
—
|
|
|
224.8
|
|
||||||
Income taxes
|
—
|
|
|
0.1
|
|
|
(36.7
|
)
|
|
(16.3
|
)
|
|
—
|
|
|
(52.9
|
)
|
||||||
Equity in income of subsidiaries
|
172.3
|
|
|
—
|
|
|
30.3
|
|
|
56.5
|
|
|
(259.1
|
)
|
|
—
|
|
||||||
Net income (loss)
|
$
|
171.9
|
|
|
$
|
(0.4
|
)
|
|
$
|
82.5
|
|
|
$
|
177.0
|
|
|
$
|
(259.1
|
)
|
|
$
|
171.9
|
|
Dividends on redeemable convertible preferred shares
|
(16.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(16.4
|
)
|
||||||
Net income (loss) attributable to common shareholders
|
$
|
155.5
|
|
|
$
|
(0.4
|
)
|
|
$
|
82.5
|
|
|
$
|
177.0
|
|
|
$
|
(259.1
|
)
|
|
$
|
155.5
|
|
(in millions)
|
Signet
Jewelers Limited |
|
Signet UK
Finance plc |
|
Guarantor
Subsidiaries |
|
Non-
Guarantor Subsidiaries |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Net (loss) income
|
$
|
(23.0
|
)
|
|
$
|
(0.1
|
)
|
|
$
|
(376.7
|
)
|
|
$
|
(72.9
|
)
|
|
$
|
449.7
|
|
|
$
|
(23.0
|
)
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency translation adjustments
|
(15.3
|
)
|
|
—
|
|
|
(15.0
|
)
|
|
(0.3
|
)
|
|
15.3
|
|
|
(15.3
|
)
|
||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unrealized loss
(1)
|
0.5
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
|
(0.5
|
)
|
|
0.5
|
|
||||||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unrealized gain
|
(3.0
|
)
|
|
—
|
|
|
(3.0
|
)
|
|
—
|
|
|
3.0
|
|
|
(3.0
|
)
|
||||||
Reclassification adjustment for gains to net income
|
(0.2
|
)
|
|
—
|
|
|
(0.2
|
)
|
|
—
|
|
|
0.2
|
|
|
(0.2
|
)
|
||||||
Pension plan:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Actuarial loss
|
(6.5
|
)
|
|
—
|
|
|
(6.5
|
)
|
|
—
|
|
|
6.5
|
|
|
(6.5
|
)
|
||||||
Reclassification adjustment to net income for amortization of actuarial losses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Reclassification adjustment to net income for amortization of net prior service credits
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
(0.1
|
)
|
|
0.1
|
|
||||||
Total other comprehensive (loss) income
|
(24.4
|
)
|
|
—
|
|
|
(24.6
|
)
|
|
0.2
|
|
|
24.4
|
|
|
(24.4
|
)
|
||||||
Total comprehensive (loss) income
|
$
|
(47.4
|
)
|
|
$
|
(0.1
|
)
|
|
$
|
(401.3
|
)
|
|
$
|
(72.7
|
)
|
|
$
|
474.1
|
|
|
$
|
(47.4
|
)
|
(1)
|
During the 13 weeks ended
August 4, 2018
, amount represents unrealized losses related to the Company’s available-for-sale debt securities. During the 13 weeks ended
July 29, 2017
, amount represents unrealized gains related to the Company’s available-for-sale debt and equity securities.
|
(in millions)
|
Signet
Jewelers Limited |
|
Signet UK
Finance plc |
|
Guarantor
Subsidiaries |
|
Non-
Guarantor Subsidiaries |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Net income (loss)
|
$
|
93.4
|
|
|
$
|
(0.2
|
)
|
|
$
|
53.2
|
|
|
$
|
96.4
|
|
|
$
|
(149.4
|
)
|
|
$
|
93.4
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency translation adjustments
|
24.6
|
|
|
—
|
|
|
24.6
|
|
|
—
|
|
|
(24.6
|
)
|
|
24.6
|
|
||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unrealized gain
|
0.3
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
|
(0.3
|
)
|
|
0.3
|
|
||||||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unrealized loss
|
(0.9
|
)
|
|
—
|
|
|
(0.9
|
)
|
|
—
|
|
|
0.9
|
|
|
(0.9
|
)
|
||||||
Reclassification adjustment for gains to net income
|
(1.1
|
)
|
|
—
|
|
|
(1.1
|
)
|
|
—
|
|
|
1.1
|
|
|
(1.1
|
)
|
||||||
Pension plan:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Reclassification adjustment to net income for amortization of actuarial losses
|
0.6
|
|
|
—
|
|
|
0.6
|
|
|
—
|
|
|
(0.6
|
)
|
|
0.6
|
|
||||||
Reclassification adjustment to net income for amortization of net prior service credits
|
(0.4
|
)
|
|
—
|
|
|
(0.4
|
)
|
|
—
|
|
|
0.4
|
|
|
(0.4
|
)
|
||||||
Total other comprehensive income
|
23.1
|
|
|
—
|
|
|
22.8
|
|
|
0.3
|
|
|
(23.1
|
)
|
|
23.1
|
|
||||||
Total comprehensive income (loss)
|
$
|
116.5
|
|
|
$
|
(0.2
|
)
|
|
$
|
76.0
|
|
|
$
|
96.7
|
|
|
$
|
(172.5
|
)
|
|
$
|
116.5
|
|
(in millions)
|
Signet
Jewelers Limited |
|
Signet UK
Finance plc |
|
Guarantor
Subsidiaries |
|
Non-
Guarantor Subsidiaries |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Net income (loss)
|
$
|
(519.6
|
)
|
|
$
|
(0.3
|
)
|
|
$
|
(1,509.5
|
)
|
|
$
|
(568.6
|
)
|
|
$
|
2,078.4
|
|
|
$
|
(519.6
|
)
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency translation adjustments
|
(37.0
|
)
|
|
—
|
|
|
(36.5
|
)
|
|
(0.5
|
)
|
|
37.0
|
|
|
(37.0
|
)
|
||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unrealized loss
(1)
|
0.3
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
|
(0.3
|
)
|
|
0.3
|
|
||||||
Impact from adoption of new accounting pronouncements
(2)
|
(0.8
|
)
|
|
—
|
|
|
—
|
|
|
(0.8
|
)
|
|
0.8
|
|
|
(0.8
|
)
|
||||||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unrealized gain
|
(1.5
|
)
|
|
—
|
|
|
(1.5
|
)
|
|
—
|
|
|
1.5
|
|
|
(1.5
|
)
|
||||||
Reclassification adjustment for gains to net income
|
(0.5
|
)
|
|
—
|
|
|
(0.5
|
)
|
|
—
|
|
|
0.5
|
|
|
(0.5
|
)
|
||||||
Pension plan:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Actuarial loss
|
(6.5
|
)
|
|
—
|
|
|
(6.5
|
)
|
|
—
|
|
|
6.5
|
|
|
(6.5
|
)
|
||||||
Reclassification adjustment to net income for amortization of actuarial losses
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
|
(0.3
|
)
|
|
0.3
|
|
||||||
Total other comprehensive income
|
(45.7
|
)
|
|
—
|
|
|
(44.7
|
)
|
|
(1.0
|
)
|
|
45.7
|
|
|
(45.7
|
)
|
||||||
Total comprehensive income (loss)
|
$
|
(565.3
|
)
|
|
$
|
(0.3
|
)
|
|
$
|
(1,554.2
|
)
|
|
$
|
(569.6
|
)
|
|
$
|
2,124.1
|
|
|
$
|
(565.3
|
)
|
(1)
|
During the
26 weeks ended August 4, 2018
, amount represents unrealized losses related to the Company’s available-for-sale debt securities. During the
26 weeks ended July 29, 2017
, amount represents unrealized gains related to the Company’s available-for-sale debt and equity securities.
|
(2)
|
Adjustment reflects the reclassification of unrealized gains related to the Company’s equity security investments as of February 3, 2018 from AOCI into retained earnings associated with the adoption of ASU 2016-1.
|
(in millions)
|
Signet
Jewelers Limited |
|
Signet UK
Finance plc |
|
Guarantor
Subsidiaries |
|
Non-
Guarantor Subsidiaries |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Net income (loss)
|
$
|
171.9
|
|
|
$
|
(0.4
|
)
|
|
$
|
82.5
|
|
|
$
|
177.0
|
|
|
$
|
(259.1
|
)
|
|
$
|
171.9
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency translation adjustments
|
25.1
|
|
|
—
|
|
|
25.1
|
|
|
—
|
|
|
(25.1
|
)
|
|
25.1
|
|
||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unrealized gain
|
0.5
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
|
(0.5
|
)
|
|
0.5
|
|
||||||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unrealized gain
|
1.8
|
|
|
—
|
|
|
1.8
|
|
|
—
|
|
|
(1.8
|
)
|
|
1.8
|
|
||||||
Reclassification adjustment for gains to net income
|
(2.5
|
)
|
|
—
|
|
|
(2.5
|
)
|
|
—
|
|
|
2.5
|
|
|
(2.5
|
)
|
||||||
Pension plan:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Reclassification adjustment to net income for amortization of actuarial losses
|
1.2
|
|
|
—
|
|
|
1.2
|
|
|
—
|
|
|
(1.2
|
)
|
|
1.2
|
|
||||||
Reclassification adjustment to net income for amortization of net prior service credits
|
(0.7
|
)
|
|
—
|
|
|
(0.7
|
)
|
|
—
|
|
|
0.7
|
|
|
(0.7
|
)
|
||||||
Total other comprehensive income
|
25.4
|
|
|
—
|
|
|
24.9
|
|
|
0.5
|
|
|
(25.4
|
)
|
|
25.4
|
|
||||||
Total comprehensive income (loss)
|
$
|
197.3
|
|
|
$
|
(0.4
|
)
|
|
$
|
107.4
|
|
|
$
|
177.5
|
|
|
$
|
(284.5
|
)
|
|
$
|
197.3
|
|
(in millions)
|
Signet
Jewelers Limited |
|
Signet UK
Finance plc |
|
Guarantor
Subsidiaries |
|
Non-
Guarantor Subsidiaries |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
0.9
|
|
|
$
|
0.1
|
|
|
$
|
64.6
|
|
|
$
|
68.5
|
|
|
$
|
—
|
|
|
$
|
134.1
|
|
Accounts receivable, held for sale
|
—
|
|
|
—
|
|
|
4.6
|
|
|
—
|
|
|
—
|
|
|
4.6
|
|
||||||
Accounts receivable, net
|
—
|
|
|
—
|
|
|
5.9
|
|
|
0.6
|
|
|
—
|
|
|
6.5
|
|
||||||
Intra-entity receivables, net
|
—
|
|
|
3.1
|
|
|
—
|
|
|
178.3
|
|
|
(181.4
|
)
|
|
—
|
|
||||||
Other receivables
|
—
|
|
|
—
|
|
|
57.7
|
|
|
25.7
|
|
|
—
|
|
|
83.4
|
|
||||||
Other current assets
|
—
|
|
|
—
|
|
|
154.1
|
|
|
1.8
|
|
|
—
|
|
|
155.9
|
|
||||||
Income taxes
|
—
|
|
|
—
|
|
|
77.3
|
|
|
41.9
|
|
|
—
|
|
|
119.2
|
|
||||||
Inventories
|
—
|
|
|
—
|
|
|
2,298.6
|
|
|
65.2
|
|
|
—
|
|
|
2,363.8
|
|
||||||
Total current assets
|
0.9
|
|
|
3.2
|
|
|
2,662.8
|
|
|
382.0
|
|
|
(181.4
|
)
|
|
2,867.5
|
|
||||||
Non-current assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Property, plant and equipment, net
|
—
|
|
|
—
|
|
|
812.8
|
|
|
7.3
|
|
|
—
|
|
|
820.1
|
|
||||||
Goodwill
|
—
|
|
|
—
|
|
|
206.3
|
|
|
302.7
|
|
|
—
|
|
|
509.0
|
|
||||||
Intangible assets, net
|
—
|
|
|
—
|
|
|
267.3
|
|
|
74.0
|
|
|
—
|
|
|
341.3
|
|
||||||
Investment in subsidiaries
|
2,107.2
|
|
|
—
|
|
|
335.9
|
|
|
(243.3
|
)
|
|
(2,199.8
|
)
|
|
—
|
|
||||||
Intra-entity receivables, net
|
—
|
|
|
400.0
|
|
|
—
|
|
|
2,598.0
|
|
|
(2,998.0
|
)
|
|
—
|
|
||||||
Other assets
|
—
|
|
|
—
|
|
|
151.4
|
|
|
18.2
|
|
|
—
|
|
|
169.6
|
|
||||||
Deferred tax assets
|
—
|
|
|
—
|
|
|
2.1
|
|
|
0.1
|
|
|
—
|
|
|
2.2
|
|
||||||
Retirement benefit asset
|
—
|
|
|
—
|
|
|
31.1
|
|
|
—
|
|
|
—
|
|
|
31.1
|
|
||||||
Total assets
|
$
|
2,108.1
|
|
|
$
|
403.2
|
|
|
$
|
4,469.7
|
|
|
$
|
3,139.0
|
|
|
$
|
(5,379.2
|
)
|
|
$
|
4,740.8
|
|
Liabilities and Shareholders’ equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans and overdrafts
|
$
|
—
|
|
|
$
|
(0.7
|
)
|
|
$
|
112.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
111.4
|
|
Accounts payable
|
—
|
|
|
—
|
|
|
206.6
|
|
|
30.1
|
|
|
—
|
|
|
236.7
|
|
||||||
Intra-entity payables, net
|
66.0
|
|
|
—
|
|
|
115.4
|
|
|
—
|
|
|
(181.4
|
)
|
|
—
|
|
||||||
Accrued expenses and other current liabilities
|
27.6
|
|
|
2.4
|
|
|
394.2
|
|
|
16.2
|
|
|
—
|
|
|
440.4
|
|
||||||
Deferred revenue
|
—
|
|
|
—
|
|
|
263.9
|
|
|
12.4
|
|
|
—
|
|
|
276.3
|
|
||||||
Total current liabilities
|
93.6
|
|
|
1.7
|
|
|
1,092.2
|
|
|
58.7
|
|
|
(181.4
|
)
|
|
1,064.8
|
|
||||||
Non-current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Long-term debt
|
—
|
|
|
395.6
|
|
|
275.5
|
|
|
—
|
|
|
—
|
|
|
671.1
|
|
||||||
Intra-entity payables, net
|
—
|
|
|
—
|
|
|
2,998.0
|
|
|
—
|
|
|
(2,998.0
|
)
|
|
—
|
|
||||||
Other liabilities
|
—
|
|
|
—
|
|
|
230.8
|
|
|
5.3
|
|
|
—
|
|
|
236.1
|
|
||||||
Deferred revenue
|
—
|
|
|
—
|
|
|
663.3
|
|
|
—
|
|
|
—
|
|
|
663.3
|
|
||||||
Deferred tax liabilities
|
—
|
|
|
—
|
|
|
74.6
|
|
|
16.4
|
|
|
—
|
|
|
91.0
|
|
||||||
Total liabilities
|
93.6
|
|
|
397.3
|
|
|
5,334.4
|
|
|
80.4
|
|
|
(3,179.4
|
)
|
|
2,726.3
|
|
||||||
Series A redeemable convertible preferred shares
|
614.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
614.4
|
|
||||||
Total shareholders’ equity (deficit)
|
1,400.1
|
|
|
5.9
|
|
|
(864.7
|
)
|
|
3,058.6
|
|
|
(2,199.8
|
)
|
|
1,400.1
|
|
||||||
Total liabilities, redeemable convertible preferred shares and shareholders’ equity
|
$
|
2,108.1
|
|
|
$
|
403.2
|
|
|
$
|
4,469.7
|
|
|
$
|
3,139.0
|
|
|
$
|
(5,379.2
|
)
|
|
$
|
4,740.8
|
|
(in millions)
|
Signet
Jewelers Limited |
|
Signet UK
Finance plc |
|
Guarantor
Subsidiaries |
|
Non-
Guarantor Subsidiaries |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
1.7
|
|
|
$
|
0.1
|
|
|
$
|
150.5
|
|
|
$
|
72.8
|
|
|
$
|
—
|
|
|
$
|
225.1
|
|
Accounts receivable, net
|
—
|
|
|
—
|
|
|
692.5
|
|
|
—
|
|
|
—
|
|
|
692.5
|
|
||||||
Intra-entity receivables, net
|
—
|
|
|
2.9
|
|
|
—
|
|
|
166.9
|
|
|
(169.8
|
)
|
|
—
|
|
||||||
Other receivables
|
—
|
|
|
—
|
|
|
62.0
|
|
|
25.2
|
|
|
—
|
|
|
87.2
|
|
||||||
Other current assets
|
—
|
|
|
—
|
|
|
154.4
|
|
|
3.8
|
|
|
—
|
|
|
158.2
|
|
||||||
Income taxes
|
—
|
|
|
—
|
|
|
2.6
|
|
|
—
|
|
|
—
|
|
|
2.6
|
|
||||||
Inventories
|
—
|
|
|
—
|
|
|
2,201.3
|
|
|
79.2
|
|
|
—
|
|
|
2,280.5
|
|
||||||
Total current assets
|
1.7
|
|
|
3.0
|
|
|
3,263.3
|
|
|
347.9
|
|
|
(169.8
|
)
|
|
3,446.1
|
|
||||||
Non-current assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Property, plant and equipment, net
|
—
|
|
|
—
|
|
|
870.1
|
|
|
7.8
|
|
|
—
|
|
|
877.9
|
|
||||||
Goodwill
|
—
|
|
|
—
|
|
|
516.4
|
|
|
305.3
|
|
|
—
|
|
|
821.7
|
|
||||||
Intangible assets, net
|
—
|
|
|
—
|
|
|
410.9
|
|
|
70.6
|
|
|
—
|
|
|
481.5
|
|
||||||
Investment in subsidiaries
|
3,150.2
|
|
|
—
|
|
|
1,163.6
|
|
|
606.0
|
|
|
(4,919.8
|
)
|
|
—
|
|
||||||
Intra-entity receivables, net
|
—
|
|
|
400.0
|
|
|
—
|
|
|
2,859.0
|
|
|
(3,259.0
|
)
|
|
—
|
|
||||||
Other assets
|
—
|
|
|
—
|
|
|
140.1
|
|
|
31.1
|
|
|
—
|
|
|
171.2
|
|
||||||
Deferred tax assets
|
—
|
|
|
—
|
|
|
1.3
|
|
|
0.1
|
|
|
—
|
|
|
1.4
|
|
||||||
Retirement benefit asset
|
—
|
|
|
—
|
|
|
39.8
|
|
|
—
|
|
|
—
|
|
|
39.8
|
|
||||||
Total assets
|
$
|
3,151.9
|
|
|
$
|
403.0
|
|
|
$
|
6,405.5
|
|
|
$
|
4,227.8
|
|
|
$
|
(8,348.6
|
)
|
|
$
|
5,839.6
|
|
Liabilities and Shareholders’ equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans and overdrafts
|
$
|
—
|
|
|
$
|
(0.7
|
)
|
|
$
|
44.7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
44.0
|
|
Accounts payable
|
—
|
|
|
—
|
|
|
202.2
|
|
|
34.8
|
|
|
—
|
|
|
237.0
|
|
||||||
Intra-entity payables, net
|
11.3
|
|
|
—
|
|
|
158.5
|
|
|
—
|
|
|
(169.8
|
)
|
|
—
|
|
||||||
Accrued expenses and other current liabilities
|
27.2
|
|
|
2.4
|
|
|
397.5
|
|
|
20.9
|
|
|
—
|
|
|
448.0
|
|
||||||
Deferred revenue
|
—
|
|
|
—
|
|
|
276.2
|
|
|
12.4
|
|
|
—
|
|
|
288.6
|
|
||||||
Income taxes
|
—
|
|
|
(0.2
|
)
|
|
36.7
|
|
|
(16.9
|
)
|
|
—
|
|
|
19.6
|
|
||||||
Total current liabilities
|
38.5
|
|
|
1.5
|
|
|
1,115.8
|
|
|
51.2
|
|
|
(169.8
|
)
|
|
1,037.2
|
|
||||||
Non-current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Long-term debt
|
—
|
|
|
395.2
|
|
|
293.0
|
|
|
—
|
|
|
—
|
|
|
688.2
|
|
||||||
Intra-entity payables, net
|
—
|
|
|
—
|
|
|
3,259.0
|
|
|
—
|
|
|
(3,259.0
|
)
|
|
—
|
|
||||||
Other liabilities
|
—
|
|
|
—
|
|
|
233.0
|
|
|
6.6
|
|
|
—
|
|
|
239.6
|
|
||||||
Deferred revenue
|
—
|
|
|
—
|
|
|
668.9
|
|
|
—
|
|
|
—
|
|
|
668.9
|
|
||||||
Deferred tax liabilities
|
—
|
|
|
—
|
|
|
76.7
|
|
|
15.6
|
|
|
—
|
|
|
92.3
|
|
||||||
Total liabilities
|
38.5
|
|
|
396.7
|
|
|
5,646.4
|
|
|
73.4
|
|
|
(3,428.8
|
)
|
|
2,726.2
|
|
||||||
Series A redeemable convertible preferred shares
|
613.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
613.6
|
|
||||||
Total shareholders’ equity
|
2,499.8
|
|
|
6.3
|
|
|
759.1
|
|
|
4,154.4
|
|
|
(4,919.8
|
)
|
|
2,499.8
|
|
||||||
Total liabilities, redeemable convertible preferred shares and shareholders’ equity
|
$
|
3,151.9
|
|
|
$
|
403.0
|
|
|
$
|
6,405.5
|
|
|
$
|
4,227.8
|
|
|
$
|
(8,348.6
|
)
|
|
$
|
5,839.6
|
|
(in millions)
|
Signet
Jewelers Limited |
|
Signet UK
Finance plc |
|
Guarantor
Subsidiaries |
|
Non-
Guarantor Subsidiaries |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
0.7
|
|
|
$
|
0.1
|
|
|
$
|
90.2
|
|
|
$
|
28.1
|
|
|
$
|
—
|
|
|
$
|
119.1
|
|
Accounts receivable, held for sale
|
—
|
|
|
—
|
|
|
1,055.6
|
|
|
—
|
|
|
—
|
|
|
1,055.6
|
|
||||||
Accounts receivable, net
|
—
|
|
|
—
|
|
|
664.5
|
|
|
—
|
|
|
—
|
|
|
664.5
|
|
||||||
Intra-entity receivables, net
|
113.1
|
|
|
3.1
|
|
|
—
|
|
|
162.4
|
|
|
(278.6
|
)
|
|
—
|
|
||||||
Other receivables
|
—
|
|
|
—
|
|
|
63.3
|
|
|
27.9
|
|
|
—
|
|
|
91.2
|
|
||||||
Other current assets
|
—
|
|
|
—
|
|
|
123.5
|
|
|
5.0
|
|
|
—
|
|
|
128.5
|
|
||||||
Income taxes
|
—
|
|
|
—
|
|
|
1.8
|
|
|
—
|
|
|
—
|
|
|
1.8
|
|
||||||
Inventories
|
—
|
|
|
—
|
|
|
2,214.7
|
|
|
67.4
|
|
|
—
|
|
|
2,282.1
|
|
||||||
Total current assets
|
113.8
|
|
|
3.2
|
|
|
4,213.6
|
|
|
290.8
|
|
|
(278.6
|
)
|
|
4,342.8
|
|
||||||
Non-current assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Property, plant and equipment, net
|
—
|
|
|
—
|
|
|
832.6
|
|
|
4.0
|
|
|
—
|
|
|
836.6
|
|
||||||
Goodwill
|
—
|
|
|
—
|
|
|
516.3
|
|
|
3.6
|
|
|
—
|
|
|
519.9
|
|
||||||
Intangible assets, net
|
—
|
|
|
—
|
|
|
413.9
|
|
|
—
|
|
|
—
|
|
|
413.9
|
|
||||||
Investment in subsidiaries
|
2,703.1
|
|
|
—
|
|
|
532.8
|
|
|
390.8
|
|
|
(3,626.7
|
)
|
|
—
|
|
||||||
Intra-entity receivables, net
|
—
|
|
|
400.0
|
|
|
—
|
|
|
3,440.0
|
|
|
(3,840.0
|
)
|
|
—
|
|
||||||
Other assets
|
—
|
|
|
—
|
|
|
133.6
|
|
|
31.5
|
|
|
—
|
|
|
165.1
|
|
||||||
Deferred tax assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Retirement benefit asset
|
—
|
|
|
—
|
|
|
35.5
|
|
|
—
|
|
|
—
|
|
|
35.5
|
|
||||||
Total assets
|
$
|
2,816.9
|
|
|
$
|
403.2
|
|
|
$
|
6,678.3
|
|
|
$
|
4,160.7
|
|
|
$
|
(7,745.3
|
)
|
|
$
|
6,313.8
|
|
Liabilities and Shareholders’ equity
|
|
|
|
|
|
|
|
||||||||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans and overdrafts
|
$
|
—
|
|
|
$
|
(0.7
|
)
|
|
$
|
340.1
|
|
|
$
|
600.0
|
|
|
$
|
—
|
|
|
$
|
939.4
|
|
Accounts payable
|
—
|
|
|
—
|
|
|
142.7
|
|
|
5.5
|
|
|
—
|
|
|
148.2
|
|
||||||
Intra-entity payables, net
|
—
|
|
|
—
|
|
|
278.6
|
|
|
—
|
|
|
(278.6
|
)
|
|
—
|
|
||||||
Accrued expenses and other current liabilities
|
27.6
|
|
|
2.4
|
|
|
375.9
|
|
|
20.7
|
|
|
—
|
|
|
426.6
|
|
||||||
Deferred revenue
|
—
|
|
|
—
|
|
|
262.3
|
|
|
—
|
|
|
—
|
|
|
262.3
|
|
||||||
Income taxes
|
—
|
|
|
(0.1
|
)
|
|
30.1
|
|
|
3.5
|
|
|
—
|
|
|
33.5
|
|
||||||
Total current liabilities
|
27.6
|
|
|
1.6
|
|
|
1,429.7
|
|
|
629.7
|
|
|
(278.6
|
)
|
|
1,810.0
|
|
||||||
Non-current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Long-term debt
|
—
|
|
|
394.8
|
|
|
310.5
|
|
|
—
|
|
|
—
|
|
|
705.3
|
|
||||||
Intra-entity payables, net
|
—
|
|
|
—
|
|
|
3,840.0
|
|
|
—
|
|
|
(3,840.0
|
)
|
|
—
|
|
||||||
Other liabilities
|
—
|
|
|
—
|
|
|
241.4
|
|
|
5.7
|
|
|
—
|
|
|
247.1
|
|
||||||
Deferred revenue
|
—
|
|
|
—
|
|
|
658.8
|
|
|
—
|
|
|
—
|
|
|
658.8
|
|
||||||
Deferred tax liabilities
|
—
|
|
|
—
|
|
|
103.3
|
|
|
—
|
|
|
—
|
|
|
103.3
|
|
||||||
Total liabilities
|
27.6
|
|
|
396.4
|
|
|
6,583.7
|
|
|
635.4
|
|
|
(4,118.6
|
)
|
|
3,524.5
|
|
||||||
Series A redeemable convertible preferred shares
|
612.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
612.7
|
|
||||||
Total shareholders’ equity (deficit)
|
2,176.6
|
|
|
6.8
|
|
|
94.6
|
|
|
3,525.3
|
|
|
(3,626.7
|
)
|
|
2,176.6
|
|
||||||
Total liabilities, redeemable convertible preferred shares and shareholders’ equity
|
$
|
2,816.9
|
|
|
$
|
403.2
|
|
|
$
|
6,678.3
|
|
|
$
|
4,160.7
|
|
|
$
|
(7,745.3
|
)
|
|
$
|
6,313.8
|
|
(in millions)
|
Signet
Jewelers Limited |
|
Signet UK
Finance plc |
|
Guarantor
Subsidiaries |
|
Non-
Guarantor Subsidiaries |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Net cash provided by operating activities
|
$
|
467.5
|
|
|
$
|
0.2
|
|
|
$
|
227.7
|
|
|
$
|
227.7
|
|
|
$
|
(470.5
|
)
|
|
$
|
452.6
|
|
Investing activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Purchase of property, plant and equipment
|
—
|
|
|
—
|
|
|
(55.1
|
)
|
|
(1.0
|
)
|
|
—
|
|
|
(56.1
|
)
|
||||||
Proceeds from sale of assets
|
—
|
|
|
—
|
|
|
—
|
|
|
5.5
|
|
|
—
|
|
|
5.5
|
|
||||||
Purchase of available-for-sale securities
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.6
|
)
|
|
—
|
|
|
(0.6
|
)
|
||||||
Proceeds from available-for-sale securities
|
—
|
|
|
—
|
|
|
—
|
|
|
8.5
|
|
|
—
|
|
|
8.5
|
|
||||||
Net cash used in investing activities
|
—
|
|
|
—
|
|
|
(55.1
|
)
|
|
12.4
|
|
|
—
|
|
|
(42.7
|
)
|
||||||
Financing activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dividends paid on common shares
|
(40.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(40.6
|
)
|
||||||
Dividends paid on redeemable convertible preferred shares
|
(15.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(15.6
|
)
|
||||||
Intra-entity dividends paid
|
—
|
|
|
—
|
|
|
—
|
|
|
(470.5
|
)
|
|
470.5
|
|
|
—
|
|
||||||
Repurchase of common shares
|
(485.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(485.0
|
)
|
||||||
Repayments of term and bridge loans
|
—
|
|
|
—
|
|
|
(13.4
|
)
|
|
—
|
|
|
—
|
|
|
(13.4
|
)
|
||||||
Proceeds from revolving credit facility
|
—
|
|
|
—
|
|
|
308.0
|
|
|
—
|
|
|
—
|
|
|
308.0
|
|
||||||
Repayments of revolving credit facility
|
—
|
|
|
—
|
|
|
(237.0
|
)
|
|
—
|
|
|
—
|
|
|
(237.0
|
)
|
||||||
Repayments of bank overdrafts
|
—
|
|
|
—
|
|
|
(8.1
|
)
|
|
—
|
|
|
—
|
|
|
(8.1
|
)
|
||||||
Other financing activities
|
(2.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.1
|
)
|
||||||
Intra-entity activity, net
|
75.0
|
|
|
(0.2
|
)
|
|
(302.0
|
)
|
|
227.2
|
|
|
—
|
|
|
—
|
|
||||||
Net cash (used in) provided by financing activities
|
(468.3
|
)
|
|
(0.2
|
)
|
|
(252.5
|
)
|
|
(243.3
|
)
|
|
470.5
|
|
|
(493.8
|
)
|
||||||
Cash and cash equivalents at beginning of period
|
1.7
|
|
|
0.1
|
|
|
150.5
|
|
|
72.8
|
|
|
—
|
|
|
225.1
|
|
||||||
(Decrease) increase in cash and cash equivalents
|
(0.8
|
)
|
|
—
|
|
|
(79.9
|
)
|
|
(3.2
|
)
|
|
—
|
|
|
(83.9
|
)
|
||||||
Effect of exchange rate changes on cash and cash equivalents
|
—
|
|
|
—
|
|
|
(6.0
|
)
|
|
(1.1
|
)
|
|
—
|
|
|
(7.1
|
)
|
||||||
Cash and cash equivalents at end of period
|
$
|
0.9
|
|
|
$
|
0.1
|
|
|
$
|
64.6
|
|
|
$
|
68.5
|
|
|
$
|
—
|
|
|
$
|
134.1
|
|
(in millions)
|
Signet
Jewelers Limited |
|
Signet UK
Finance plc |
|
Guarantor
Subsidiaries |
|
Non-
Guarantor Subsidiaries |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Net cash provided by operating activities
|
$
|
617.7
|
|
|
$
|
0.1
|
|
|
$
|
479.3
|
|
|
$
|
430.7
|
|
|
$
|
(1,118.0
|
)
|
|
$
|
409.8
|
|
Investing activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Purchase of property, plant and equipment
|
—
|
|
|
—
|
|
|
(105.6
|
)
|
|
(0.1
|
)
|
|
—
|
|
|
(105.7
|
)
|
||||||
Purchase of available-for-sale securities
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.3
|
)
|
|
—
|
|
|
(1.3
|
)
|
||||||
Proceeds from available-for-sale securities
|
—
|
|
|
—
|
|
|
—
|
|
|
0.6
|
|
|
—
|
|
|
0.6
|
|
||||||
Net cash used in investing activities
|
—
|
|
|
—
|
|
|
(105.6
|
)
|
|
(0.8
|
)
|
|
—
|
|
|
(106.4
|
)
|
||||||
Financing activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dividends paid on common shares
|
(39.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(39.0
|
)
|
||||||
Dividends paid on redeemable convertible preferred shares
|
(19.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(19.1
|
)
|
||||||
Intra-entity dividends paid
|
—
|
|
|
—
|
|
|
(800.0
|
)
|
|
(318.0
|
)
|
|
1,118.0
|
|
|
—
|
|
||||||
Repurchase of common shares
|
(460.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(460.0
|
)
|
||||||
Repayments of term loan
|
—
|
|
|
—
|
|
|
(9.0
|
)
|
|
—
|
|
|
—
|
|
|
(9.0
|
)
|
||||||
Proceeds from securitization facility
|
—
|
|
|
—
|
|
|
—
|
|
|
1,242.9
|
|
|
—
|
|
|
1,242.9
|
|
||||||
Repayments of securitization facility
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,242.9
|
)
|
|
—
|
|
|
(1,242.9
|
)
|
||||||
Proceeds from revolving credit facility
|
—
|
|
|
—
|
|
|
550.0
|
|
|
—
|
|
|
—
|
|
|
550.0
|
|
||||||
Repayments of revolving credit facility
|
—
|
|
|
—
|
|
|
(303.0
|
)
|
|
—
|
|
|
—
|
|
|
(303.0
|
)
|
||||||
Proceeds from bank overdrafts
|
—
|
|
|
—
|
|
|
(3.1
|
)
|
|
—
|
|
|
—
|
|
|
(3.1
|
)
|
||||||
Other financing activities
|
(3.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.0
|
)
|
||||||
Intra-entity activity, net
|
(97.6
|
)
|
|
(0.1
|
)
|
|
208.1
|
|
|
(110.4
|
)
|
|
—
|
|
|
—
|
|
||||||
Net cash (used in) provided by financing activities
|
(618.7
|
)
|
|
(0.1
|
)
|
|
(357.0
|
)
|
|
(428.4
|
)
|
|
1,118.0
|
|
|
(286.2
|
)
|
||||||
Cash and cash equivalents at beginning of period
|
1.7
|
|
|
0.1
|
|
|
70.3
|
|
|
26.6
|
|
|
—
|
|
|
98.7
|
|
||||||
(Decrease) increase in cash and cash equivalents
|
(1.0
|
)
|
|
—
|
|
|
16.7
|
|
|
1.5
|
|
|
—
|
|
|
17.2
|
|
||||||
Effect of exchange rate changes on cash and cash equivalents
|
—
|
|
|
—
|
|
|
3.2
|
|
|
—
|
|
|
—
|
|
|
3.2
|
|
||||||
Cash and cash equivalents at end of period
|
$
|
0.7
|
|
|
$
|
0.1
|
|
|
$
|
90.2
|
|
|
$
|
28.1
|
|
|
$
|
—
|
|
|
$
|
119.1
|
|
•
|
The North America segment operated
2,859
locations in the US and
137
locations in Canada as of
August 4, 2018
.
|
◦
|
In the US, the segment primarily operates in malls and off-mall locations under the following banners: Kay (Kay Jewelers and Kay Outlet); Zales (Zales Jewelers and Zales Outlet); Jared (Jared The Galleria Of Jewelry and Jared Vault); and a variety of mall-based regional banners. Additionally, in the US, the segment operates mall-based kiosks under the Piercing Pagoda banner and the JamesAllen.com website (“James Allen”), which was acquired in the R2Net acquisition.
|
◦
|
In Canada, the segment primarily operates under the Peoples banner (Peoples Jewellers), as well as the Mappins Jewellers regional banner.
|
◦
|
The North America segment is entirely comprised of the Sterling Jewelers and Zale divisions reported under the Company’s previous reportable segment structure.
|
•
|
The International segment operated
497
stores in the United Kingdom, Republic of Ireland and Channel Islands as of
August 4, 2018
. The segment primarily operates in shopping malls and off-mall locations under the H.Samuel and Ernest Jones banners. The International segment is entirely comprised of the UK Jewelry division reported under the Company’s previous reportable segment structure.
|
(in millions)
|
August 4, 2018
|
|
February 3, 2018
|
|
July 29, 2017
|
||||||
Cash and cash equivalents
|
$
|
134.1
|
|
|
$
|
225.1
|
|
|
$
|
119.1
|
|
Loans and overdrafts
|
(111.4
|
)
|
|
(44.0
|
)
|
|
(939.4
|
)
|
|||
Long-term debt
|
(671.1
|
)
|
|
(688.2
|
)
|
|
(705.3
|
)
|
|||
Net debt
|
$
|
(648.4
|
)
|
|
$
|
(507.1
|
)
|
|
$
|
(1,525.6
|
)
|
|
13 weeks ended
|
|
26 weeks ended
|
||||||||||||
(in millions)
|
August 4, 2018
|
|
July 29, 2017
|
|
August 4, 2018
|
|
July 29, 2017
|
||||||||
Net cash provided by operating activities
|
$
|
424.7
|
|
|
$
|
353.0
|
|
|
$
|
452.6
|
|
|
$
|
409.8
|
|
Purchase of property, plant and equipment
|
(30.0
|
)
|
|
(49.5
|
)
|
|
(56.1
|
)
|
|
(105.7
|
)
|
||||
Free cash flow
|
$
|
394.7
|
|
|
$
|
303.5
|
|
|
$
|
396.5
|
|
|
$
|
304.1
|
|
3.
|
Earnings before interest, income taxes, depreciation and amortization (“EBITDA”) and Adjusted EBITDA
|
|
13 weeks ended
|
|
26 weeks ended
|
||||||||||||
(in millions)
|
August 4, 2018
|
|
July 29, 2017
|
|
August 4, 2018
|
|
July 29, 2017
|
||||||||
Net income (loss)
|
$
|
(23.0
|
)
|
|
$
|
93.4
|
|
|
$
|
(519.6
|
)
|
|
$
|
171.9
|
|
Income taxes
|
(44.0
|
)
|
|
28.7
|
|
|
(129.9
|
)
|
|
52.9
|
|
||||
Other non-operating income
|
(0.5
|
)
|
|
—
|
|
|
(1.1
|
)
|
|
—
|
|
||||
Interest expense, net
|
9.4
|
|
|
13.5
|
|
|
18.3
|
|
|
26.1
|
|
||||
Depreciation and amortization
|
43.9
|
|
|
48.4
|
|
|
93.7
|
|
|
98.4
|
|
||||
Amortization of unfavorable leases and contracts
|
(2.1
|
)
|
|
(4.0
|
)
|
|
(4.1
|
)
|
|
(8.6
|
)
|
||||
EBITDA
|
$
|
(16.3
|
)
|
|
$
|
180.0
|
|
|
$
|
(542.7
|
)
|
|
$
|
340.7
|
|
Credit transaction, net
|
23.9
|
|
|
—
|
|
|
167.0
|
|
|
—
|
|
||||
Restructuring charges - cost of sales
|
63.2
|
|
|
—
|
|
|
63.2
|
|
|
—
|
|
||||
Restructuring charges
|
19.6
|
|
|
—
|
|
|
26.1
|
|
|
—
|
|
||||
Goodwill and intangible impairments
|
—
|
|
|
—
|
|
|
448.7
|
|
|
—
|
|
||||
Adjusted EBITDA
|
$
|
90.4
|
|
|
$
|
180.0
|
|
|
$
|
162.3
|
|
|
$
|
340.7
|
|
4.
|
Non-GAAP operating income
|
|
13 weeks ended
|
|
26 weeks ended
|
||||||||||||
(in millions)
|
May 5, 2018
|
|
April 29, 2017
|
|
August 4, 2018
|
|
July 29, 2017
|
||||||||
Operating income (loss)
|
$
|
(58.1
|
)
|
|
$
|
135.6
|
|
|
$
|
(632.3
|
)
|
|
$
|
250.9
|
|
Credit transaction, net
|
23.9
|
|
|
—
|
|
|
167.0
|
|
|
—
|
|
||||
Restructuring charges - cost of sales
|
63.2
|
|
|
—
|
|
|
63.2
|
|
|
—
|
|
||||
Restructuring charges
|
19.6
|
|
|
—
|
|
|
26.1
|
|
|
—
|
|
||||
Goodwill and intangible impairments
|
—
|
|
|
—
|
|
|
448.7
|
|
|
—
|
|
||||
Non-GAAP operating income
|
$
|
48.6
|
|
|
$
|
135.6
|
|
|
$
|
72.7
|
|
|
$
|
250.9
|
|
•
|
Same store sales: Up
1.7%
.
|
•
|
Total sales:
$1,420.1 million
,
increased
1.5%
.
|
•
|
Operating loss:
$(58.1) million
,
down
$193.7 million
including the loss recognized on held for sale non-prime receivables and restructuring charges.
|
•
|
Diluted loss per share:
$(0.56)
, including the impact of a loss recognized on held for sale non-prime receivables of ($0.10) and restructuring charges of ($1.14).
|
•
|
Same store sales: Up
0.7%
.
|
•
|
Total sales:
$2,900.7 million
, increased
3.5%
.
|
•
|
Operating loss:
$(632.3) million
, down
$883.2 million
including the impact of a non-cash impairment charge related to goodwill and intangibles, loss recognized on held for sale non-prime receivables and restructuring charges.
|
•
|
Diluted loss per share:
$(9.27)
, including the impact of a non-cash impairment charge related to goodwill and intangibles of ($7.18), loss recognized on held for sale non-prime receivables of ($1.95) and restructuring charges of ($1.19).
|
(1)
|
Non-GAAP measure.
|
|
Second Quarter
|
|
Year to Date
|
||||||||||||||||||||||||
|
Fiscal 2019
|
|
Fiscal 2018
|
|
Fiscal 2019
|
|
Fiscal 2018
|
||||||||||||||||||||
(in millions)
|
$
|
|
% of sales
|
|
$
|
|
% of sales
|
|
$
|
|
% of sales
|
|
$
|
|
% of sales
|
||||||||||||
Sales
|
$
|
1,420.1
|
|
|
100.0
|
%
|
|
$
|
1,399.6
|
|
|
100.0
|
%
|
|
$
|
2,900.7
|
|
|
100.0
|
%
|
|
$
|
2,803.0
|
|
|
100.0
|
%
|
Cost of sales
|
(929.9
|
)
|
|
(65.5
|
)
|
|
(941.7
|
)
|
|
(67.3
|
)
|
|
(1,925.7
|
)
|
|
(66.4
|
)
|
|
(1,853.9
|
)
|
|
(66.1
|
)
|
||||
Restructuring charges - cost of sales
|
(63.2
|
)
|
|
(4.4
|
)
|
|
—
|
|
|
—
|
|
|
(63.2
|
)
|
|
(2.2
|
)
|
|
—
|
|
|
—
|
|
||||
Gross margin
|
427.0
|
|
|
30.1
|
|
|
457.9
|
|
|
32.7
|
|
|
911.8
|
|
|
31.4
|
|
|
949.1
|
|
|
33.9
|
|
||||
Selling, general and administrative expenses
|
(444.8
|
)
|
|
(31.3
|
)
|
|
(409.0
|
)
|
|
(29.2
|
)
|
|
(927.6
|
)
|
|
(32.0
|
)
|
|
(861.8
|
)
|
|
(30.7
|
)
|
||||
Credit transaction, net
|
(23.9
|
)
|
|
(1.7
|
)
|
|
14.8
|
|
|
1.1
|
|
|
(167.0
|
)
|
|
(5.7
|
)
|
|
14.8
|
|
|
0.5
|
|
||||
Restructuring charges
|
(19.6
|
)
|
|
(1.4
|
)
|
|
—
|
|
|
—
|
|
|
(26.1
|
)
|
|
(0.9
|
)
|
|
—
|
|
|
—
|
|
||||
Goodwill and intangible impairments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(448.7
|
)
|
|
(15.5
|
)
|
|
—
|
|
|
—
|
|
||||
Other operating income, net
|
3.2
|
|
|
0.2
|
|
|
71.9
|
|
|
5.1
|
|
|
25.3
|
|
|
0.9
|
|
|
148.8
|
|
|
5.3
|
|
||||
Operating (loss) income
|
(58.1
|
)
|
|
(4.1
|
)
|
|
135.6
|
|
|
9.7
|
|
|
(632.3
|
)
|
|
(21.8
|
)
|
|
250.9
|
|
|
9.0
|
|
||||
Interest expense, net
|
(9.4
|
)
|
|
(0.6
|
)
|
|
(13.5
|
)
|
|
(1.0
|
)
|
|
(18.3
|
)
|
|
(0.6
|
)
|
|
(26.1
|
)
|
|
(1.0
|
)
|
||||
Other non-operating income
|
0.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
(Loss) income before income taxes
|
(67.0
|
)
|
|
(4.7
|
)
|
|
122.1
|
|
|
8.7
|
|
|
(649.5
|
)
|
|
(22.4
|
)
|
|
224.8
|
|
|
8.0
|
|
||||
Income taxes
|
44.0
|
|
|
3.1
|
|
|
(28.7
|
)
|
|
(2.0
|
)
|
|
129.9
|
|
|
4.5
|
|
|
(52.9
|
)
|
|
(1.9
|
)
|
||||
Net (loss) income
|
$
|
(23.0
|
)
|
|
(1.6
|
)%
|
|
$
|
93.4
|
|
|
6.7
|
%
|
|
$
|
(519.6
|
)
|
|
(17.9
|
)%
|
|
$
|
171.9
|
|
|
6.1
|
%
|
Dividends on redeemable convertible preferred shares
|
(8.2
|
)
|
|
nm
|
|
|
(8.2
|
)
|
|
nm
|
|
|
(16.4
|
)
|
|
nm
|
|
|
(16.4
|
)
|
|
nm
|
|
||||
Net income (loss) attributable to common shareholders
|
$
|
(31.2
|
)
|
|
(2.2
|
)%
|
|
$
|
85.2
|
|
|
6.1
|
%
|
|
$
|
(536.0
|
)
|
|
(18.5
|
)%
|
|
$
|
155.5
|
|
|
5.5
|
%
|
nm
|
Not meaningful.
|
|
Change from previous year
|
|
|
|||||||||||||||
Second quarter of Fiscal 2019
|
Same
store sales (1) |
|
Non-same
store sales, net |
|
Total sales
at constant exchange rate
|
|
Exchange
translation impact |
|
Total
sales as reported |
|
Total
sales (in millions) |
|||||||
Kay
|
(2.1
|
)%
|
|
(1.1
|
)%
|
|
(3.2
|
)%
|
|
na
|
|
|
(3.2
|
)%
|
|
$
|
546.0
|
|
Zales
|
7.1
|
%
|
|
(3.6
|
)%
|
|
3.5
|
%
|
|
na
|
|
|
3.5
|
%
|
|
$
|
278.5
|
|
Jared
|
1.2
|
%
|
|
(3.0
|
)%
|
|
(1.8
|
)%
|
|
na
|
|
|
(1.8
|
)%
|
|
$
|
271.2
|
|
Piercing Pagoda
|
11.5
|
%
|
|
(3.0
|
)%
|
|
8.5
|
%
|
|
na
|
|
|
8.5
|
%
|
|
$
|
67.6
|
|
James Allen
(2)
|
25.3
|
%
|
|
|
|
|
|
|
|
|
|
$
|
54.4
|
|
||||
Peoples
|
0.2
|
%
|
|
(5.0
|
)%
|
|
(4.8
|
)%
|
|
1.6
|
%
|
|
(3.2
|
)%
|
|
$
|
47.7
|
|
Regional banners
|
(10.5
|
)%
|
|
(38.1
|
)%
|
|
(48.6
|
)%
|
|
0.2
|
%
|
|
(48.4
|
)%
|
|
$
|
21.3
|
|
North America segment
|
2.1
|
%
|
|
(0.2
|
)%
|
|
1.9
|
%
|
|
—
|
%
|
|
1.9
|
%
|
|
$
|
1,286.7
|
|
H.Samuel
|
(3.8
|
)%
|
|
(1.4
|
)%
|
|
(5.2
|
)%
|
|
2.6
|
%
|
|
(2.6
|
)%
|
|
$
|
60.6
|
|
Ernest Jones
|
(1.1
|
)%
|
|
—
|
%
|
|
(1.1
|
)%
|
|
2.8
|
%
|
|
1.7
|
%
|
|
$
|
70.9
|
|
International segment
|
(2.4
|
)%
|
|
(0.6
|
)%
|
|
(3.0
|
)%
|
|
2.7
|
%
|
|
(0.3
|
)%
|
|
$
|
131.5
|
|
Other
(3)
|
|
|
|
|
|
|
|
|
|
|
$
|
1.9
|
|
|||||
Signet
|
1.7
|
%
|
|
(0.6
|
)%
|
|
1.1
|
%
|
|
0.4
|
%
|
|
1.5
|
%
|
|
$
|
1,420.1
|
|
(1)
|
The 53rd week in Fiscal 2018 has resulted in a shift in Fiscal 2019, as the fiscal year began a week later than the previous fiscal year. As such, same store sales for Fiscal 2019 are being calculated by aligning the weeks of the quarter to the same weeks in the prior year. Total reported sales continue to be calculated based on the reported fiscal periods.
|
(2)
|
Same store sales presented for James Allen to provide comparative performance measure.
|
(3)
|
Includes sales from Signet’s diamond sourcing initiative.
|
|
Average Merchandise Transaction Value
(1)(2)
|
|
Merchandise Transactions
|
||||||||||||||||
|
Average Value
|
|
Change from previous year
|
|
Change from previous year
|
||||||||||||||
Second Quarter
|
Fiscal 2019
|
|
Fiscal 2018
|
|
Fiscal 2019
|
|
Fiscal 2018
|
|
Fiscal 2019
|
|
Fiscal 2018
|
||||||||
Kay
|
$
|
530
|
|
|
$
|
472
|
|
|
11.6
|
%
|
|
2.2
|
%
|
|
(11.3
|
)%
|
|
0.9
|
%
|
Zales
|
$
|
494
|
|
|
$
|
476
|
|
|
3.1
|
%
|
|
(0.6
|
)%
|
|
5.2
|
%
|
|
0.1
|
%
|
Jared
|
$
|
656
|
|
|
$
|
594
|
|
|
10.1
|
%
|
|
12.5
|
%
|
|
(7.1
|
)%
|
|
(9.7
|
)%
|
Piercing Pagoda
|
$
|
66
|
|
|
$
|
60
|
|
|
8.2
|
%
|
|
9.1
|
%
|
|
2.6
|
%
|
|
(3.1
|
)%
|
James Allen
(3)
|
$
|
3,738
|
|
|
$
|
4,291
|
|
|
(12.9
|
)%
|
|
na
|
|
|
42.7
|
%
|
|
na
|
|
Peoples
(4)
|
C$
|
441
|
|
|
C$
|
436
|
|
|
(0.2
|
)%
|
|
5.6
|
%
|
|
0.7
|
%
|
|
3.0
|
%
|
Regional banners
|
$
|
482
|
|
|
$
|
445
|
|
|
7.3
|
%
|
|
4.0
|
%
|
|
(14.0
|
)%
|
|
(11.2
|
)%
|
North America segment
|
$
|
392
|
|
|
$
|
356
|
|
|
6.5
|
%
|
|
4.4
|
%
|
|
(3.0
|
)%
|
|
(2.2
|
)%
|
H.Samuel
(5)
|
£
|
87
|
|
|
£
|
83
|
|
|
4.8
|
%
|
|
10.7
|
%
|
|
(8.5
|
)%
|
|
(13.9
|
)%
|
Ernest Jones
(5)
|
£
|
396
|
|
|
£
|
375
|
|
|
5.9
|
%
|
|
23.8
|
%
|
|
(4.8
|
)%
|
|
(21.2
|
)%
|
International segment
(5)
|
£
|
152
|
|
|
£
|
143
|
|
|
6.3
|
%
|
|
14.4
|
%
|
|
(7.8
|
)%
|
|
(15.5
|
)%
|
(1)
|
Net merchandise sales within the North America segment include all merchandise product sales, net of discounts and returns. In addition, excluded from net merchandise sales are sales tax in the US, repair, extended service plan, insurance, employee and other miscellaneous sales.
|
(2)
|
Net merchandise sales within the International segment include all merchandise product sales, including value added tax (“VAT”), net of discounts and returns. In addition, excluded from net merchandise sales are repairs, warranty, insurance, employee and other miscellaneous sales. As a result, the sum of the changes will not agree to change in same store sales.
|
(3)
|
ATV presented for James Allen to provide comparative performance measure.
|
(4)
|
Amounts for Peoples stores are denominated in Canadian dollars.
|
(5)
|
Amounts for the International segment, including H.Samuel and Ernest Jones, are denominated in British pounds.
|
na
|
Not applicable as James Allen was acquired as part of R2Net acquisition in September 2017. See Note
5
for additional information.
|
|
Change from previous year
|
|
|
|||||||||||||||
Year to date Fiscal 2019
|
Same
store sales (1) |
|
Non-same
store sales, net |
|
Total sales
at constant exchange rate |
|
Exchange
translation impact |
|
Total
sales as reported |
|
Total
sales (in millions) |
|||||||
Kay
|
(2.0
|
)%
|
|
1.9
|
%
|
|
(0.1
|
)%
|
|
na
|
|
|
(0.1
|
)%
|
|
$
|
1,129.2
|
|
Zales
|
8.0
|
%
|
|
(2.3
|
)%
|
|
5.7
|
%
|
|
na
|
|
|
5.7
|
%
|
|
$
|
576.6
|
|
Jared
|
(3.5
|
)%
|
|
1.5
|
%
|
|
(2.0
|
)%
|
|
na
|
|
|
(2.0
|
)%
|
|
$
|
538.7
|
|
Piercing Pagoda
|
9.2
|
%
|
|
(1.6
|
)%
|
|
7.6
|
%
|
|
na
|
|
|
7.6
|
%
|
|
$
|
142.0
|
|
James Allen
(2)
|
27.3
|
%
|
|
|
|
|
|
|
|
|
|
$
|
107.7
|
|
||||
Peoples
|
2.3
|
%
|
|
(2.7
|
)%
|
|
(0.4
|
)%
|
|
2.8
|
%
|
|
2.4
|
%
|
|
$
|
94.4
|
|
Regional banners
|
(10.9
|
)%
|
|
(36.9
|
)%
|
|
(47.8
|
)%
|
|
0.2
|
%
|
|
(47.6
|
)%
|
|
$
|
45.9
|
|
North America segment
|
1.3
|
%
|
|
2.4
|
%
|
|
3.7
|
%
|
|
0.2
|
%
|
|
3.9
|
%
|
|
$
|
2,634.5
|
|
H.Samuel
|
(4.6
|
)%
|
|
(1.4
|
)%
|
|
(6.0
|
)%
|
|
6.8
|
%
|
|
0.8
|
%
|
|
$
|
123.8
|
|
Ernest Jones
|
(4.5
|
)%
|
|
1.3
|
%
|
|
(3.2
|
)%
|
|
6.8
|
%
|
|
3.6
|
%
|
|
$
|
136.4
|
|
International segment
|
(4.5
|
)%
|
|
—
|
%
|
|
(4.5
|
)%
|
|
6.8
|
%
|
|
2.3
|
%
|
|
$
|
260.2
|
|
Other
(3)
|
|
|
|
|
|
|
|
|
|
|
$
|
6.0
|
|
|||||
Signet
|
0.7
|
%
|
|
2.0
|
%
|
|
2.7
|
%
|
|
0.8
|
%
|
|
3.5
|
%
|
|
$
|
2,900.7
|
|
(1)
|
The 53rd week in Fiscal 2018 has resulted in a shift in Fiscal 2019, as the fiscal year began a week later than the previous fiscal year. As such, same store sales for Fiscal 2019 are being calculated by aligning the weeks of the quarter to the same weeks in the prior year. Total reported sales continue to be calculated based on the reported fiscal periods.
|
(2)
|
Same store sales presented for James Allen to provide comparative performance measure.
|
(3)
|
Includes sales from Signet’s diamond sourcing initiative.
|
|
Average Merchandise Transaction Value
(1)(2)
|
|
Merchandise Transactions
|
||||||||||||||||
|
Average Value
|
|
Change from previous year
|
|
Change from previous year
|
||||||||||||||
Year to date
|
Fiscal 2019
|
|
Fiscal 2018
|
|
Fiscal 2019
|
|
Fiscal 2018
|
|
Fiscal 2019
|
|
Fiscal 2018
|
||||||||
Kay
|
$
|
510
|
|
|
$
|
468
|
|
|
9.0
|
%
|
|
2.6
|
%
|
|
(8.9
|
)%
|
|
(8.4
|
)%
|
Zales
|
$
|
492
|
|
|
$
|
480
|
|
|
2.5
|
%
|
|
0.8
|
%
|
|
6.9
|
%
|
|
(9.4
|
)%
|
Jared
|
$
|
655
|
|
|
$
|
594
|
|
|
8.6
|
%
|
|
9.2
|
%
|
|
(10.3
|
)%
|
|
(13.0
|
)%
|
Piercing Pagoda
|
$
|
67
|
|
|
$
|
61
|
|
|
8.1
|
%
|
|
8.9
|
%
|
|
0.7
|
%
|
|
(5.8
|
)%
|
James Allen
(3)
|
$
|
3,715
|
|
|
$
|
4,046
|
|
|
(8.2
|
)%
|
|
na
|
|
|
37.9
|
%
|
|
na
|
|
Peoples
(4)
|
C$
|
448
|
|
|
C$
|
445
|
|
|
(0.4
|
)%
|
|
6.7
|
%
|
|
2.9
|
%
|
|
(5.2
|
)%
|
Regional banners
|
$
|
473
|
|
|
$
|
447
|
|
|
8.0
|
%
|
|
5.2
|
%
|
|
(15.2
|
)%
|
|
(19.4
|
)%
|
North America segment
|
$
|
384
|
|
|
$
|
409
|
|
|
5.8
|
%
|
|
2.5
|
%
|
|
(3.0
|
)%
|
|
(8.7
|
)%
|
H.Samuel
(5)
|
£
|
86
|
|
|
£
|
83
|
|
|
3.6
|
%
|
|
10.7
|
%
|
|
(8.1
|
)%
|
|
(14.0
|
)%
|
Ernest Jones
(5)
|
£
|
384
|
|
|
£
|
361
|
|
|
5.8
|
%
|
|
20.3
|
%
|
|
(8.0
|
)%
|
|
(18.5
|
)%
|
International segment
(5)
|
£
|
147
|
|
|
£
|
139
|
|
|
5.0
|
%
|
|
13.0
|
%
|
|
(8.0
|
)%
|
|
(14.9
|
)%
|
(1)
|
Net merchandise sales within the North America segment include all merchandise product sales, net of discounts and returns. In addition, excluded from net merchandise sales are sales tax in the US, repair, extended service plan, insurance, employee and other miscellaneous sales.
|
(2)
|
Net merchandise sales within the International segment include all merchandise product sales, including value added tax (“VAT”), net of discounts and returns. In addition, excluded from net merchandise sales are repairs, warranty, insurance, employee and other miscellaneous sales. As a result, the sum of the changes will not agree to change in same store sales.
|
(3)
|
ATV presented for James Allen to provide comparative performance measure.
|
(4)
|
Amounts for Peoples stores are denominated in Canadian dollars.
|
(5)
|
Amounts for the International segment, including H.Samuel and Ernest Jones, are denominated in British pounds.
|
na
|
Not applicable as James Allen was acquired as part of R2Net acquisition in September 2017. See Note 5 for additional information.
|
|
Second Quarter
|
||||||||||||
|
Fiscal 2019
|
|
Fiscal 2018
|
||||||||||
(in millions)
|
$
|
|
% of segment sales
|
|
$
|
|
% of segment sales
|
||||||
North America segment
(1)
|
$
|
(4.2
|
)
|
|
(0.3
|
)%
|
|
$
|
161.6
|
|
|
12.8
|
%
|
International segment
(2)
|
(6.1
|
)
|
|
(4.6
|
)%
|
|
2.3
|
|
|
1.7
|
%
|
||
Other
(3)
|
(47.8
|
)
|
|
nm
|
|
|
(28.3
|
)
|
|
nm
|
|
||
Operating (loss) income
|
$
|
(58.1
|
)
|
|
(4.1
|
)%
|
|
$
|
135.6
|
|
|
9.7
|
%
|
(1)
|
Fiscal 2019 includes
$53.7 million
and
$19.4 million
related to inventory charges recorded in conjunction with the Company’s restructuring activities and valuation losses related to the sale of eligible non-prime in-house accounts receivable, respectively. See Note
7
and Note
4
for additional information. Operating income was also negatively impacted by the sale of the prime accounts receivable in the third quarter of Fiscal 2018, which results in less interest income earned from a smaller receivable portfolio.
|
(2)
|
Fiscal 2019 includes
$3.8 million
related to inventory charges recorded in conjunction with the Company’s restructuring activities. See Note
7
of Item 1for additional information.
|
(3)
|
Fiscal 2019 includes
$25.3 million
and
$4.5 million
related to charges recorded in conjunction with the Company’s restructuring activities including inventory charges and transaction costs associated with the sale of the non-prime in-house accounts receivable, respectively. See Note
7
and Note
4
for additional information.
|
nm
|
Not meaningful.
|
|
Year to date
|
||||||||||||
|
Fiscal 2019
|
|
Fiscal 2018
|
||||||||||
(in millions)
|
$
|
|
% of segment sales
|
|
$
|
|
% of segment sales
|
||||||
North America segment
(1)
|
$
|
(541.5
|
)
|
|
(20.6
|
)%
|
|
$
|
296.4
|
|
|
11.7
|
%
|
International segment
(2)
|
(13.7
|
)
|
|
(5.3
|
)%
|
|
(0.2
|
)
|
|
(0.1
|
)%
|
||
Other
(3)
|
(77.1
|
)
|
|
nm
|
|
|
(45.3
|
)
|
|
nm
|
|
||
Operating (loss) income
|
$
|
(632.3
|
)
|
|
(21.8
|
)%
|
|
$
|
250.9
|
|
|
9.0
|
%
|
(1)
|
Fiscal 2019 includes includes
$448.7 million
,
$53.7 million
and
$160.4 million
related to the goodwill and intangible impairments recognized in the first quarter, inventory charges recorded in conjunction with the Company’s restructuring activities and valuation losses related to the sale of eligible non-prime in-house accounts receivable, respectively. See Note
15
, Note
7
and Note
4
, respectively, of Item 1 for additional information. Operating income was also negatively impacted by the sale of the prime accounts receivable in the third quarter of Fiscal 2018, which results in less interest income earned from a smaller receivable portfolio.
|
(2)
|
Fiscal 2019 includes
$3.8 million
related to inventory charges recorded in conjunction with the Company’s restructuring activities. See Note
7
of Item 1 for additional information.
|
(3)
|
Fiscal 2019
$31.8 million
and
$6.6 million
related to charges recorded in conjunction with the Company’s restructuring activities including inventory charges and transaction costs associated with the sale of the non-prime in-house accounts receivable, respectively. See Note
7
and Note
4
, respectively, of Item 1 for additional information.
|
nm
|
Not meaningful.
|
|
26 weeks ended
|
||||||
(in millions)
|
August 4, 2018
|
|
July 29, 2017
|
||||
Net cash provided by operating activities
|
$
|
452.6
|
|
|
$
|
409.8
|
|
Net cash used in investing activities
|
(42.7
|
)
|
|
(106.4
|
)
|
||
Net cash used in financing activities
|
(493.8
|
)
|
|
(286.2
|
)
|
||
(Decrease) increase in cash and cash equivalents
|
$
|
(83.9
|
)
|
|
$
|
17.2
|
|
|
|
|
|
||||
Cash and cash equivalents at beginning of period
|
$
|
225.1
|
|
|
$
|
98.7
|
|
(Decrease) increase in cash and cash equivalents
|
(83.9
|
)
|
|
17.2
|
|
||
Effect of exchange rate changes on cash and cash equivalents
|
(7.1
|
)
|
|
3.2
|
|
||
Cash and cash equivalents at end of period
|
$
|
134.1
|
|
|
$
|
119.1
|
|
•
|
Net loss was
$519.6 million
compared to net income of
$171.9 million
, a decrease of
$691.5 million
.
|
•
|
Non-cash goodwill and intangible impairment charges of
$448.7 million
were recorded related to an interim impairment assessment performed during the first quarter of Fiscal 2019.
|
•
|
Non-cash restructuring charges of
$77.4 million
related to the Plan primarily related to inventory charges and impairment of information technology assets.
|
•
|
Depreciation and amortization
decreased
$4.7 million
to
$93.7 million
from
$98.4 million
in the prior year comparable period.
|
•
|
Cash provided by accounts receivable totaled
$504.1 million
, including
$445.5 million
from the sale of eligible non-prime in-house finance receivables,
$40.4 million
generated by receivables held for investment including in-house finance receivables prior to reclassification to held for sale, and
$18.2 million
related to the in-house finance receivable portfolio subsequent to the reclassification to held for sale. This compares to
$159.1 million
of cash provided by a decrease in accounts receivable in the prior year comparable period. The changes in accounts receivable are primarily driven by the North America in-house credit program.
|
|
26 weeks ended
|
||||||
|
August 4, 2018
|
|
July 29, 2017
|
||||
Total North America sales (excluding James Allen)
(1)
(millions)
|
$
|
2,526.8
|
|
|
$
|
2,536.6
|
|
Credit and lease purchase sales (millions)
|
$
|
1,299.4
|
|
|
$
|
1,374.2
|
|
Credit and lease purchase sales as % of total North America sales
(1)
|
51.4
|
%
|
|
54.2
|
%
|
(1)
|
Excludes James Allen sales totaling
$107.7 million
during the
26 weeks ended August 4, 2018
as in-house credit was not available to James Allen customers during the period. Additionally, see Note 5 of Item 1 for additional information regarding the acquisition of R2Net in September 2017.
|
•
|
Cash used for inventory and inventory-related items was
$170.9 million
compared to cash provided of
$180.0 million
in the prior year comparable period. Total inventory as of
August 4, 2018
was
$2,363.8 million
compared to the prior year comparable quarter balance of
$2,282.1 million
. Cash used for inventory increased by $350.9 million from prior year primarily due to investments in new merchandise related to bridal initiatives across banners.
|
•
|
Cash provided by accounts payable was
$3.6 million
compared to cash used of
$104.4 million
in the prior year comparable period primarily driven by timing of payments made in connection with inventory purchases.
|
•
|
Cash used for accrued expenses and other liabilities was
$2.0 million
compared to cash used of
$6.4 million
in the prior year comparable period primarily driven by the timing of payments associated with payroll-related items including incentive compensation and advertising.
|
•
|
Cash used for income taxes was
$134.9 million
compared to cash used of
$67.4 million
in the prior year comparable period primarily attributable to lower pre-tax earnings in the current year as well as the favorable impact of the Tax Cuts and Jobs Act in the United States.
|
Store count by banner
|
February 3, 2018
|
|
Openings
|
|
Closures
|
|
August 4, 2018
|
||||
Kay
|
1,247
|
|
|
20
|
|
|
(22
|
)
|
|
1,245
|
|
Zales
|
704
|
|
|
1
|
|
|
(16
|
)
|
|
689
|
|
Peoples
|
129
|
|
|
1
|
|
|
(5
|
)
|
|
125
|
|
Jared
|
274
|
|
|
—
|
|
|
(3
|
)
|
|
271
|
|
Piercing Pagoda
|
598
|
|
|
—
|
|
|
(14
|
)
|
|
584
|
|
Regional banners
|
100
|
|
|
—
|
|
|
(18
|
)
|
|
82
|
|
North America segment
(1)
|
3,052
|
|
|
22
|
|
|
(78
|
)
|
|
2,996
|
|
H.Samuel
|
301
|
|
|
—
|
|
|
(5
|
)
|
|
296
|
|
Ernest Jones
|
203
|
|
|
1
|
|
|
(3
|
)
|
|
201
|
|
International segment
(1)
|
504
|
|
|
1
|
|
|
(8
|
)
|
|
497
|
|
Signet
|
3,556
|
|
|
23
|
|
|
(86
|
)
|
|
3,493
|
|
(1)
|
The annual net change in selling square footage for Fiscal 2018 for the North America and International segments were (1.9%)
and (0.4%), respectively.
|
Year to date
|
|
|
Fiscal 2019
|
|
Fiscal 2018
|
||||||||||||||||||||
(in millions, except per share amounts)
|
Amount
authorized |
|
Shares
repurchased |
|
Amount
repurchased |
|
Average
repurchase price per share |
|
Shares
repurchased |
|
Amount
repurchased |
|
Average
repurchase price per share |
||||||||||||
2017 Program
(1)
|
$
|
600.0
|
|
|
7.5
|
|
|
$
|
434.4
|
|
|
$
|
57.64
|
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
||
2016 Program
(2)
|
$
|
1,375.0
|
|
|
1.3
|
|
|
$
|
50.6
|
|
|
$
|
39.76
|
|
|
8.1
|
|
|
$
|
460.0
|
|
|
$
|
56.91
|
|
Total
|
|
|
8.8
|
|
|
$
|
485.0
|
|
|
$
|
55.06
|
|
|
8.1
|
|
|
$
|
460.0
|
|
|
$
|
56.91
|
|
(1)
|
The 2017 Program had
$165.6 million
remaining as of
August 4, 2018
.
|
(2)
|
The 2016 Program was completed in March 2018.
|
n/a
|
Not applicable as the 2017 Program was authorized by the Board of Directors in June 2017.
|
|
Fiscal 2019
|
|
Fiscal 2018
|
||||||||||||
(in millions, except per share amounts)
|
Cash dividend per share
|
|
Total
dividends |
|
Cash dividend
per share |
|
Total
dividends |
||||||||
First quarter
|
$
|
0.37
|
|
|
$
|
21.8
|
|
|
$
|
0.31
|
|
|
$
|
21.3
|
|
Second quarter
(1)
|
0.37
|
|
|
19.2
|
|
|
0.31
|
|
|
18.7
|
|
||||
Total
|
$
|
0.74
|
|
|
$
|
41.0
|
|
|
$
|
0.62
|
|
|
$
|
40.0
|
|
(1)
|
Signet’s dividend policy for common shares results in the dividend payment date being a quarter in arrears from the declaration date. As a result, as of
August 4, 2018
and
July 29, 2017
,
$19.2 million
and
$18.7 million
, respectively, has been recorded in accrued expenses and other current liabilities in the condensed consolidated balance sheets reflecting the cash dividends declared on common shares for the
second
quarter of
Fiscal 2019
and
Fiscal 2018
, respectively.
|
|
Fiscal 2019
|
|
Fiscal 2018
|
||||
(in millions)
|
Total cash
dividends |
|
Total cash
dividends |
||||
First quarter
|
$
|
7.8
|
|
|
$
|
7.8
|
|
Second quarter
(1)
|
7.8
|
|
|
7.8
|
|
||
Total
|
$
|
15.6
|
|
|
$
|
15.6
|
|
(1)
|
Signet’s preferred shares dividends results in the dividend payment date being a quarter in arrears from the declaration date. As a result, as of
August 4, 2018
and
July 29, 2017
,
$7.8 million
and
$7.8 million
, respectively, has been recorded in accrued expenses and other current liabilities in the condensed consolidated balance sheets reflecting the cash dividends on preferred shares declared for the
second
quarter of
Fiscal 2019
and
Fiscal 2018
.
|
Period
|
Total number of shares
purchased (1) |
|
Average price paid per share
|
|
Total number of shares purchased as part of publicly announced plans or programs
(2)
|
|
Maximum number (or approximate dollar value) of shares that may yet be purchased under the plans or programs
|
||||||
May 6, 2018 to June 2, 2018
|
549
|
|
|
$
|
38.36
|
|
|
—
|
|
|
$
|
590,586,635
|
|
June 3, 2018 to June 30, 2018
|
3,573,414
|
|
|
$
|
57.55
|
|
|
3,573,414
|
|
|
$
|
384,921,508
|
|
July 1, 2018 to August 4, 2018
|
3,727,000
|
|
|
$
|
58.94
|
|
|
3,721,425
|
|
|
$
|
165,586,651
|
|
Total
|
7,300,963
|
|
|
$
|
58.26
|
|
|
7,294,839
|
|
|
$
|
165,586,651
|
|
(1)
|
Includes
6,124
shares delivered to Signet by employees to satisfy minimum tax withholding obligations due upon the vesting or payment of stock awards under share-based compensation programs. These are not repurchased in connection with any publicly announced share repurchase programs.
|
(2)
|
In June 2017, the Board of Directors authorized the repurchase of up to $600.0 million of Signet’s common shares (the “2017 Program”). The 2017 Program may be suspended or discontinued at any time without notice.
|
|
|
|
Number
|
|
Description of Exhibits
(1)
|
|
|
|
10.1
|
|
|
|
|
|
10.2*
|
|
|
|
|
|
10.3*
|
|
|
|
|
|
10.4*
|
|
|
|
|
|
10.5
|
|
|
|
|
|
10.6
|
|
|
|
|
|
10.7
|
|
|
|
|
|
10.8
|
|
|
|
|
|
31.1*
|
|
|
|
|
|
31.2*
|
|
|
|
|
|
32.1*
|
|
|
|
|
|
32.2*
|
|
|
|
|
|
101.INS*
|
|
XBRL Instance Document.
|
|
|
|
101.SCH*
|
|
XBRL Taxonomy Extension Schema Document.
|
|
|
|
101.CAL*
|
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
|
|
|
101.DEF*
|
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
|
|
|
101.LAB*
|
|
XBRL Taxonomy Extension Label Linkbase Document.
|
|
|
|
101.PRE*
|
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
(1)
|
Signet hereby agrees to furnish to the U.S. Securities and Exchange Commission, upon request, a copy of each instrument that defines the rights of holders of long-term debt under which the total amount of securities authorized does not exceed 10% of the total assets of Signet and its subsidiaries on a consolidated basis that is not filed or incorporated by reference as an exhibit to our annual and quarterly reports.
|
*
|
Filed herewith.
|
|
|
|
|
|
|
|
|
|
|
|
Signet Jewelers Limited
|
||
|
|
|
|
|||
Date:
|
|
September 6, 2018
|
|
By:
|
|
/s/ Michele L. Santana
|
|
|
|
|
Name:
|
|
Michele L. Santana
|
|
|
|
|
Title:
|
|
Chief Financial Officer
(Principal Financial Officer and Principal Accounting Officer)
|
GRANTEE
BY:_________________________
[Name]
|
SIGNET JEWELERS LIMITED
BY: _______________________
Name:
Title:
|
Vesting:
|
The Restricted Stock shall vest pursuant to Section 3 of the Agreement.
|
GRANTEE
BY:_________________________
[Name]
|
SIGNET JEWELERS LIMITED
BY: _______________________
Name:
Title:
|
Section 1.
|
Grant of the Restricted Stock Award.
|
Section 2.
|
Issuance of shares.
|
Section 3.
|
Vesting.
|
Section 4.
|
Miscellaneous Provisions.
|
Performance Period:
|
The Restricted Stock Units shall vest pursuant to Section 2 of the
Agreement. The Performance Period for this award is
|
GRANTEE
BY:__________________________
[Name]
|
SIGNET JEWELERS LIMITED
BY: _______________________
Name:
Title:
|
Section 1.
|
Grant of Restricted Stock Unit Award.
|
Section 2.
|
Vesting and Forfeiture.
|
[_____] Target
|
Tranche 1 Vesting Percentage
|
|
[___]% (Maximum Achievable Tranche 1 Units)
|
|
[___]% (Tranche 1 Target Units)
|
|
[___]%
|
[_____]
|
Tranche 2 Vesting Percentage
|
|
[___]% (Maximum Achievable Tranche 2 Units)
|
|
[___]% (Tranche 2 Target Units)
|
|
[__]% (minimum)
|
Section 3.
|
Settlement of Units.
|
Section 4.
|
Miscellaneous Provisions.
|
|
|
|
By:
|
|
/s/ Virginia C. Drosos
|
Name:
|
|
Virginia C. Drosos
|
Title:
|
|
Chief Executive Officer
|
|
|
|
By:
|
|
/s/ Michele L. Santana
|
Name:
|
|
Michele L. Santana
|
Title:
|
|
Chief Financial Officer
(Principal Financial Officer
and Principal Accounting Officer)
|
|
|
|
By:
|
|
/s/ Virginia C. Drosos
|
Name:
|
|
Virginia C. Drosos
|
Title:
|
|
Chief Executive Officer
|
|
|
|
By:
|
|
/s/ Michele L. Santana
|
Name:
|
|
Michele L. Santana
|
Title:
|
|
Chief Financial Officer
(Principal Financial Officer
and Principal Accounting Officer)
|