Common shares, treasury shares and reserves

12 Months Ended

Feb. 02, 2013

Common shares, treasury shares and reserves

21. Common shares, treasury shares and reserves

Common Shares

The par value of each Common Share is 18 cents. The consideration received for Common Shares issued during the year related to options was $21.6 million (Fiscal 2012: $10.6 million; Fiscal 2011: $11.3 million).

Treasury shares

Treasury shares represent the cost of shares that the Company purchased in the market under the Repurchase Program, shares forfeited under the Omnibus Incentive Plan, and those previously held by the Employee Stock Ownership Trust (“ESOT”) to satisfy options under Signet’s share option plans.

The total number of shares held by the Company at February 2, 2013 was 5,834,836. In Fiscal 2013, the Company repurchased 6,425,296 shares under the authorized Repurchase Program, while reissuing 865,598 shares, net of taxes and forfeitures, to satisfy awards outstanding under existing share based compensation plans. In Fiscal 2012, the Company repurchased 256,241 shares under the authorized Repurchase Program and 18,897 shares were forfeited under the Omnibus Incentive Plan.

In Fiscal 2011, the trustee of the ESOT transferred 29,526 shares to the holders of executive share and LTIP options granted to UK employees. In aggregate, the subscription monies amounted to $0.7 million. The trustee held no shares at each of January 28, 2012, March 22, 2012 and January 29, 2011. In Fiscal 2011, the trustee of the ESOT purchased a total of 6,730 shares to provide shares to satisfy the exercise of executive share options granted to US employees. In aggregate, the purchase of these shares amounted to $0.2 million at option exercise prices between $17.42 and $26.16. The share price was based on the NYSE market prices on the last business days before the dates on which the respective terms were established and varied between $31.07 and $34.05 per share.

Share repurchase

Signet’s Board of Directors has authorized a program to repurchase up to $350 million of Signet’s common shares (the “Repurchase Program”). The Repurchase Program, which began on January 16, 2012 and will continue through January 2014, is funded through Signet’s existing cash reserves and liquidity sources. Repurchased shares may be used by Signet for general corporate purposes. Repurchases may be made from time to time in the open market, through block trades or otherwise. The timing, manner, price and amount of any repurchases will be determined by Signet in its discretion, and will be subject to economic and market conditions, stock prices, applicable legal requirements and other factors. The Repurchase Program may be suspended or discontinued at any time, or from time to time, without notice. At February 2, 2013, $50.1 million remained available under the Repurchase Program.

The Company repurchased 6,425,296 shares at an average price of $44.70 in Fiscal 2013 under the authorized Repurchase Program, which are being held as treasury shares. The Company repurchased 256,241 treasury shares in Fiscal 2012 (all under this program) and 0 in Fiscal 2011.

Other reserves

Other reserves consist of special reserves and a capital redemption reserve established in accordance with the laws of England and Wales.

The Predecessor Company established a special reserve prior to 1997 in connection with reductions in additional paid-in capital which can only be used to write off existing goodwill resulting from acquisitions and otherwise only for purposes permitted for share premium accounts under the laws of England and Wales.

The capital redemption reserve has arisen on the cancellation of previously issued Common Shares and represents the nominal value of those shares cancelled.