Accounts receivable, net

6 Months Ended

Jul. 28, 2012

Accounts receivable, net

6. Accounts receivable, net

Signet’s accounts receivable primarily consist of US customer in-house financing receivables. The accounts receivable portfolio consists of a population that is of similar characteristics and is evaluated collectively for impairment. The allowance is an estimate of the losses as of the balance sheet date, and is calculated using a proprietary model that analyzes factors such as delinquency rates and recovery rates. A 100% allowance is made for any amount that is more than 90 days aged on a recency basis, as well as an allowance for those amounts 90 days aged and under based on historical loss information and payment performance. The calculation is reviewed by management to assess whether, based on economic events, additional analyses are required to appropriately estimate losses inherent in the portfolio.

	July 28, 2012 $million		January 28, 2012 $million		July 30, 2011 $million
Accounts receivable by portfolio segment, net:
US customer in-house finance receivables		1,024.2		1,077.4		901.2
Other accounts receivable		8.0		10.8		5.6
Total accounts receivable, net		1,032.2		1,088.2		906.8

Signet grants credit to customers based on a variety of credit quality indicators, including customer financial information and prior payment experience. On an ongoing basis, management monitors the credit exposure based on past due status and collection experience, as it has found a meaningful correlation between the past due status of customers and the risk of loss.

Other accounts receivable is comprised of gross accounts receivable relating to the insurance loss replacement business in the UK division of $8.7 million (January 28, 2012 and July 30, 2011: $11.3 million and $6.2 million, respectively) with a corresponding valuation allowance of $0.7 million (January 28, 2012 and July 30, 2011: $0.5 million and $0.6 million, respectively).

Allowance for Credit Losses on US Customer In-House Finance Receivables:

	26 weeks ended July 28, 2012 $million			52 weeks ended January 28, 2012 $million			26 weeks ended July 30, 2011 $million
Beginning balance		(78.1	)		(67.8	)		(67.8	)
Charge-offs		49.5			92.8			40.3
Recoveries		11.1			19.3			9.9
Provision		(61.1	)		(122.4	)		(50.2	)
Ending balance		(78.6	)		(78.1	)		(67.8	)
Ending receivable balance evaluated for impairment		1,102.8			1,155.5			969.0
US customer in-house finance receivables, net		1,024.2			1,077.4			901.2

Credit Quality Indicator and Age Analysis of Past Due US Customer In-House Finance Receivables:

	July 28, 2012					January 28, 2012					July 30, 2011
	Gross $million		Valuation allowance $million			Gross $million		Valuation allowance $million			Gross $million		Valuation allowance $million
Performing:
Current, aged 0-30 days		874.8		(27.0	)		932.6		(28.9	)		774.3		(23.2	)
Past due, aged 31-90 days		183.1		(6.7	)		180.2		(6.5	)		154.7		(4.6	)
Non Performing:
Past due, aged more than 90 days		44.9		(44.9	)		42.7		(42.7	)		40.0		(40.0	)
		1,102.8		(78.6	)		1,155.5		(78.1	)		969.0		(67.8	)