Income taxes (Tables)

12 Months Ended

Jan. 29, 2022


(in millions)	Fiscal 2022		Fiscal 2021		Fiscal 2020
Income (loss) before income taxes:
– US	$	665.9	$	(173.4)	$	32.3
– Foreign	218.5		83.7		97.4
Total income (loss) before income taxes	$	884.4	$	(89.7)	$	129.7

Current taxation:
– US	$	108.1	$	(222.2)	$	3.0
– Foreign	7.6		0.7		1.9
Deferred taxation:
– US	8.4		158.4		17.0
– Foreign	(9.6)		(11.4)		2.3
Total income tax expense (benefit)	$	114.5	$	(74.5)	$	24.2

Reconciliation of Effective Tax Rate

As the statutory rate of corporation tax in Bermuda is 0%, the differences between the US federal income tax rate and the effective tax rates for Signet have been presented below:


	Fiscal 2022		Fiscal 2021		Fiscal 2020
US federal income tax rates	21.0	%	21.0	%	21.0	%
US state income taxes	3.3	%	4.1	%	3.1	%
Differences between US federal and foreign statutory income tax rates	(0.1)	%	0.1	%	1.3	%
Expenditures permanently disallowable for tax purposes, net of permanent tax benefits	—	%	(4.7)	%	3.3	%
Impact of global reinsurance arrangements	(2.2)	%	14.1	%	(20.3)	%
Impact of global financing arrangements	(0.6)	%	—	%	—	%
Impairment of goodwill	—	%	(2.4)	%	7.5	%

CARES Act	(1.4)	%	111.9	%	—	%
Valuation allowance	(6.5)	%	(55.5)	%	—	%
Other items	(0.6)	%	(5.5)	%	2.8	%
Effective tax rate	12.9	%	83.1	%	18.7	%

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets (liabilities) consisted of the following:


	January 29, 2022						January 30, 2021
(in millions)	Assets		(Liabilities)		Total		Assets		(Liabilities)		Total
Intangible assets	$	—	$	(77.0)	$	(77.0)	$	—	$	(41.7)	$	(41.7)
US property, plant and equipment	—		(60.2)		(60.2)		—		(55.3)		(55.3)
Foreign property, plant and equipment	7.1		—		7.1		7.3		—		7.3
Inventory valuation	—		(237.8)		(237.8)		—		(230.4)		(230.4)
Revenue deferral	88.6		—		88.6		95.6		—		95.6
Derivative instruments	—		—		—		0.3		—		0.3
Lease assets	—		(261.9)		(261.9)		—		(295.1)		(295.1)
Lease liabilities	284.3		—		284.3		331.5		—		331.5
Deferred compensation	7.7		—		7.7		6.7		—		6.7
Retirement benefit obligations	1.5		—		1.5		—		(9.8)		(9.8)
Share-based compensation	8.4		—		8.4		4.4		—		4.4
Other temporary differences	42.4		—		42.4		57.2		—		57.2
Net operating losses and foreign tax credits	84.3		—		84.3		56.5		—		56.5
Value of capital losses	16.9		—		16.9		13.9		—		13.9
Total gross deferred tax assets (liabilities)	$	541.2	$	(636.9)	$	(95.7)	$	573.4	$	(632.3)	$	(58.9)
Valuation allowance	(27.9)		—		(27.9)		(83.9)		—		(83.9)
Deferred tax assets (liabilities)	$	513.3	$	(636.9)	$	(123.6)	$	489.5	$	(632.3)	$	(142.8)

Disclosed as:
Non-current assets					$	37.3					$	16.4
Non-current liabilities					(160.9)						(159.2)
Deferred tax assets (liabilities)					$	(123.6)					$	(142.8)

Summary of Activity Related to Unrecognized Tax Benefits

The following table summarizes the activity related to the Company’s unrecognized tax benefits for US federal, US state and non-US tax jurisdictions:


(in millions)	Fiscal 2022		Fiscal 2021		Fiscal 2020
Unrecognized tax benefits, beginning of period	$	25.4	$	23.5	$	18.1

Increases related to current year tax positions	2.0		1.0		2.0

Increases related to prior year tax positions	0.4		3.4		6.0


Lapse of statute of limitations	(2.9)		(2.6)		(2.6)
Difference on foreign currency translation	—		0.1		—
Unrecognized tax benefits, end of period	$	24.9	$	25.4	$	23.5