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Accounts receivable (Tables)
 6 Months Ended
Aug. 04, 2018
Receivables [Abstract]  
Accounts Receivable By Portfolio Segment
(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
Allowance for Credit Losses on US Customer In-House Finance Receivables
The activity in the allowance for credit losses on Sterling Jewelers customer in-house finance receivables is shown below:
 
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.
Credit Quality Indicator and Age Analysis of Past Due US Customer In-House Finance Receivables
The credit quality indicator and age analysis of customer in-house finance receivables as of February 3, 2018 are shown below under the contractual basis:
   
 
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
%
Prior to the fourth quarter of Fiscal 2018, the Company’s calculation of the allowance for credit losses was based on a recency measure of delinquency. The credit quality indicator and age analysis of customer in-house finance receivables prior to the sale of the prime-only credit portion of the in-house receivable portfolio as of July 29, 2017 are shown below under the recency basis:
   
 
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
%