Restructuring Plans

6 Months Ended

Aug. 04, 2018

Restructuring and Related Activities [Abstract]

Signet Path to Brilliance Plan

During the first quarter of Fiscal 2019, Signet launched a three-year comprehensive transformation plan, the “Signet Path to Brilliance” plan (the “Plan”), to reposition the Company to be a share gaining, OmniChannel jewelry category leader. The Plan is expected to result in pre-tax charges in the range of $170 million - $190 million over the duration of the plan of which $80 million - $95 million are expected to be cash charges. In Fiscal 2019, the Company's preliminary estimates for pre-tax charges related to cost reduction activities and inventory charges ranges from $125 million - $135 million, of which $40 million - $45 million are expected to be cash charges. Signet also expects a net reduction in net selling square footage of 4.0% - 5.0% related to a net reduction in stores in Fiscal 2019.

Restructuring charges of $82.8 million and $89.3 million were recognized in the 13 and 26 weeks ended August 4, 2018, respectively, primarily related to inventory charges associated with discontinued brands and collections, professional fees for legal and consulting services, severance and impairment of information technology assets related to the Plan. No Plan liabilities were recorded as of August 4, 2018.

Restructuring charges and other Plan related costs are classified in the condensed consolidated income statements as follows:



		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.