8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 12, 2014

SIGNET JEWELERS LIMITED

(Exact name of registrant as specified in its charter)

Commission File Number: 1-32349

Bermuda	Not Applicable
(State or other jurisdiction of incorporation)	(IRS Employer Identification No.)

Clarendon House

2 Church Street

Hamilton

HM11

Bermuda

(Address of principal executive offices, including zip code)

441 296 5872

(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01. Other Events.

On May 12, 2014, Signet Jewelers Limited (the “Company”) filed a Registration Statement on Form S-3 (No. 333-195865) with the Securities and Exchange Commission (the “SEC”) under which Signet UK Finance plc (the “Issuer”) may offer debt securities that may be guaranteed by the Company and the following direct and indirect wholly owned subsidiaries of the Company (“the Guarantor Subsidiaries”): Signet Group Limited, Signet US Holdings, Inc., Signet U.S. Services Inc., Signet Group Treasury Services Inc., Signet US Finance Limited, Sterling Jewelers Inc., Ultra Stores, Inc., Sterling Ecomm LLC, Sterling Jewelers LLC, Scamp & Scoundrel LLC, Sterling Inc., Signet Group Services US Inc., Signet Trading Limited, H. Samuel Limited, Ernest Jones Limited, Leslie Davis Limited and Checkbury Limited.

Rule 3-10 of Regulation S-X requires that the Company’s audited financial statements incorporated by reference into the Registration Statement include, in a footnote, certain condensed consolidating financial information relating to the Company, the Issuer, the Guarantor Subsidiaries and the subsidiaries of the Company that are not Guarantor Subsidiaries.

Accordingly, the Company is filing this Current Report on Form 8-K in part to add Note 26 to the notes to the Company’s audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended February 1, 2014 (the “Form 10-K”) filed with the SEC on March 27, 2014. To reflect the addition of Note 26 to the Company’s audited consolidated financial statements included in the Form 10-K, the Company has amended such financial statements in their entirety. Such amended financial statements are attached as Exhibit 99.1 hereto and are incorporated by reference herein.

Other than adding Note 26 to the Company’s audited consolidated financial statements, this Form 8-K does not modify or update the disclosures in the Company’s Form 10-K. This report should be read together with the Company’s Form 10-K and its other filings with the SEC.

In addition, the Company is filing this Current Report on Form 8-K to provide certain historical financial information of Zale Corporation (“Zale”) and certain pro forma financial information of the Company in connection with the Company’s previously announced proposed acquisition of Zale (the “Acquisition”), in each case as described in Item 9.01 below. The Zale historical financial information and the Company’s pro forma financial information are attached as Exhibits 99.2, 99.3 and 99.4 to this Form 8-K and are incorporated by reference herein.

The Acquisition is subject to approval by Zale’s stockholders and certain other customary closing conditions.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.	Description
23.1	Consent of KPMG LLP, independent registered public accounting firm to Signet Jewelers Limited
23.2	Consent of Ernst & Young LLP, independent registered public accounting firm to Zale Corporation
99.1	Audited consolidated financial statements of Signet Jewelers Limited as of February 1, 2014 and February 2, 2013, and for the three years ended February 1, 2014, including the notes thereto and the report of KPMG LLP thereon
99.2	Audited consolidated financial statements of Zale Corporation as of July 31, 2013 and 2012, and for the three years ended July 31, 2013, including the notes thereto and the report of Ernst & Young LLP thereon
99.3	Unaudited consolidated financial statements of Zale Corporation as of January 31, 2014, and for the three and six month periods ended January 31, 2014 and 2013, including the notes thereto

2

99.4	Unaudited pro forma condensed combined financial information of Signet Jewelers Limited as of and for the year ended February 1, 2014, including the notes thereto
99.5	Unaudited pro forma computation of ratio of earnings to fixed charges (also incorporated by reference as Exhibit 12.2 to the Registration Statement)
101.INS*	XBRL Instance Document
101.SCH*	XBRL Taxonomy Extension Schema
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*	XBRL Taxonomy Extension Definition Linkase Document
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document

* Filed herewith.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	SIGNET JEWELERS LIMITED
Date: May 12, 2014
	By:	/s/ Mark A. Jenkins
	Name:	Mark A. Jenkins
	Title:	Signet Company Secretary & Chief Legal Officer

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EXHIBIT INDEX

Exhibit No.	Description
23.1	Consent of KPMG LLP, independent registered public accounting firm to Signet Jewelers Limited
23.2	Consent of Ernst & Young LLP, independent registered public accounting firm to Zale Corporation
99.1	Audited consolidated financial statements of Signet Jewelers Limited as of February 1, 2014 and February 2, 2013, and for the three years ended February 1, 2014, including the notes thereto and the report of KPMG LLP thereon
99.2	Audited consolidated financial statements of Zale Corporation as of July 31, 2013 and 2012, and for the three years ended July 31, 2013, including the notes thereto and the report of Ernst & Young LLP thereon
99.3	Unaudited consolidated financial statements of Zale Corporation as of January 31, 2014, and for the three and six month periods ended January 31, 2014 and 2013, including the notes thereto
99.4	Unaudited pro forma condensed combined financial information of Signet Jewelers Limited as of and for the year ended February 1, 2014, including the notes thereto
99.5	Unaudited pro forma computation of ratio of earnings to fixed charges (also incorporated by reference as Exhibit 12.2 to the Registration Statement)
101.INS*	XBRL Instance Document
101.SCH*	XBRL Taxonomy Extension Schema
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*	XBRL Taxonomy Extension Definition Linkase Document
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document

* Filed herewith.

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EX-23.1

Exhibit 23.1

Consent of Independent Registered Public Accounting Firm

The Board of Directors

Signet Jewelers Limited:

We consent to the use of our report dated March 27, 2014, except as to Note 26, which is as of May 9, 2014, with respect to the consolidated balance sheets of Signet Jewelers Limited and subsidiaries as of February 1, 2014 and February 2, 2013, and the related consolidated income statements, statements of comprehensive income, statement of cash flows, and statements of shareholders’ equity for the 52 week period ended February 1, 2014, the 53 week period ended February 2, 2013, and the 52 week period ended January 28, 2012, and the effectiveness of internal control over financial reporting as of February 1, 2014, included on the Form 8-K of Signet Jewelers Limited dated May 12, 2014 and incorporated by reference into the registration statement on Form S-3 of Signet UK Finance plc (Nos. 333-195865) and registration statements on Form S-8 (Nos. 333-159987, 333-153435, 333-09634, 333-134192, 333-12304, 333-153422 and 333-08964) of Signet Jewelers Limited and to the reference to our firm under the heading “Experts” in the prospectus.

/s/ KPMG LLP

Cleveland, Ohio

May 12, 2014

EX-23.2

Exhibit 23.2

Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in the following Registration Statements of Signet Jewelers Limited:

(1) Registration Statement (Form S-8 No. 333-09634) pertaining to the Signet Group PLC Employee Stock Savings Plan,

(2) Registration Statement (Form S-8 No. 333-159987) pertaining to the Signet Jewelers Limited Omnibus Incentive Plan,

(3) Registration Statement (Form S-8 No. 333-153435) pertaining to the Signet Jewelers Limited Plans and Signet Group plc Plans,

(4) Registration Statement (Form S-8 No. 333-134192) pertaining to the Signet Group 2005 Long-Term Incentive Plan and Signet Group PLC US Share Option Plan 2003,

(5) Registration Statement (Form S-8 No. 333-12304) pertaining to the Signet Group PLC 2000 Long-Term Incentive Plan,

(6) Registration Statement (Form S-8 No. 333-153422) pertaining to the Signet Group PLC 1993 Executive Share Option Scheme,

(7) Registration Statement (Form S-8 No. 333-08964) pertaining to the Signet Group PLC 1993 Executive Share Option Scheme, and

(8) Registration Statement (Form S-3 No. 333-195865) of Signet UK Finance plc;

of our reports dated September 27, 2013, with respect to the consolidated financial statements of Zale Corporation, and the effectiveness of internal control over financial reporting of Zale Corporation, included in this Current Report on Form 8-K of Signet Jewelers Limited dated May 12, 2014.

/s/ Ernst & Young LLP

Dallas, Texas

May 12, 2014

EX-99.1

Exhibit 99.1

Report of Independent Registered Public Accounting Firm

The Board of Directors and Shareholders

Signet Jewelers Limited:

We have audited the accompanying consolidated balance sheets of Signet Jewelers Limited and subsidiaries (Signet) as of February 1, 2014 and February 2, 2013, and the related consolidated income statements, statements of comprehensive income, statements of cash flows, and statements of shareholders’ equity for the 52 week period ended February 1, 2014, the 53 week period ended February 2, 2013, and the 52 week period ended January 28, 2012. We also have audited Signet’s internal control over financial reporting as of February 1, 2014, based on criteria established in Internal Control – Integrated Framework (1992) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Signet’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s annual report on internal control over financial reporting. Our responsibility is to express an opinion on these consolidated financial statements and an opinion on Signet’s internal control over financial reporting based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the consolidated financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Signet Jewelers Limited and subsidiaries as of February 1, 2014 and February 2, 2013, and the results of its operations and its cash flows for the 52 week period ended February 1, 2014, the 53 week period ended February 2, 2013, and the 52 week period ended January 28, 2012, in conformity with U.S. generally accepted accounting principles. Also in our opinion, Signet Jewelers Limited and subsidiaries maintained, in all material respects, effective internal control over financial reporting as of February 1, 2014, based on criteria established in Internal Control – Integrated Framework (1992) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

/s/ KPMG LLP

Cleveland, Ohio

March 27, 2014 , except for Note 26,
as to which the date is May 9, 2014

1

SIGNET JEWELERS LIMITED

CONSOLIDATED INCOME STATEMENTS

	Fiscal 2014			Fiscal 2013			Fiscal 2012			Notes
(in millions, except per share amounts)
Sales	$	4,209.2		$	3,983.4		$	3,749.2			2
Cost of sales		(2,628.7	)		(2,446.0	)		(2,311.6	)
Gross margin		1,580.5			1,537.4			1,437.6
Selling, general and administrative expenses		(1,196.7	)		(1,138.3	)		(1,056.7	)
Other operating income, net		186.7			161.4			126.5			3
Operating income		570.5			560.5			507.4			2
Interest expense, net		(4.0	)		(3.6	)		(5.3	)
Income before income taxes		566.5			556.9			502.1
Income taxes		(198.5	)		(197.0	)		(177.7	)		5
Net income	$	368.0		$	359.9		$	324.4
Earnings per share: basic	$	4.59		$	4.37		$	3.76			6
diluted	$	4.56		$	4.35		$	3.73			6
Weighted average common shares outstanding: basic		80.2			82.3			86.2			6
diluted		80.7			82.8			87.0			6
Dividends declared per share	$	0.60		$	0.48		$	0.20			7

The accompanying notes are an integral part of these consolidated financial statements.

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SIGNET JEWELERS LIMITED

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Fiscal 2014									Fiscal 2013									Fiscal 2012
	Pre-tax amount			Tax (expense) benefit			After-tax amount			Pre-tax amount			Tax (expense) benefit			After-tax amount			Pre-tax amount			Tax (expense) benefit			After-tax amount
(in millions)
Net income							$	368.0								$	359.9								$	324.4
Other comprehensive income (loss):
Foreign currency translation adjustments	$	12.4		$	—			12.4		$	(0.5	)	$	—			(0.5	)	$	(3.9	)	$	—			(3.9	)
Cash flow hedges:
Unrealized (loss) gain		(33.0	)		11.0			(22.0	)		(10.4	)		3.7			(6.7	)		49.7			(17.5	)		32.2
Reclassification adjustment for losses (gains) to net income		11.1			(4.4	)		6.7			(22.4	)		8.0			(14.4	)		(24.6	)		8.6			(16.0	)
Pension plan:
Actuarial gain (loss)		0.2			—			0.2			6.2			(1.5	)		4.7			(10.8	)		3.5			(7.3	)
Reclassification adjustment to net income for amortization of actuarial loss		2.3			(0.6	)		1.7			3.2			(0.8	)		2.4			2.6			(0.8	)		1.8
Prior service (benefit) costs		(0.9	)		0.2			(0.7	)		(1.1	)		0.3			(0.8	)		7.5			(2.0	)		5.5
Reclassification adjustment to net income for amortization of prior service credits		(1.5	)		0.4			(1.1	)		(1.6	)		0.4			(1.2	)		(1.0	)		0.3			(0.7	)
Total other comprehensive (loss) income	$	(9.4	)	$	6.6		$	(2.8	)	$	(26.6	)	$	10.1		$	(16.5	)	$	19.5		$	(7.9	)	$	11.6
Total comprehensive income							$	365.2								$	343.4								$	336.0

The accompanying notes are an integral part of these consolidated financial statements.

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SIGNET JEWELERS LIMITED

CONSOLIDATED BALANCE SHEETS

	February 1, 2014			February 2, 2013			Notes
(in millions, except par value per share amount)
Assets
Current assets:
Cash and cash equivalents	$	247.6		$	301.0			9
Accounts receivable, net		1,374.0			1,205.3			10
Other receivables		51.5			42.1
Other current assets		87.0			85.6
Deferred tax assets		3.0			1.6			5
Income taxes		6.5			3.5
Inventories		1,488.0			1,397.0			11
Total current assets		3,257.6			3,036.1
Non-current assets:
Property, plant and equipment, net		487.6			430.4			13
Other assets		114.0			99.9			12
Deferred tax assets		113.7			104.1			5
Retirement benefit asset		56.3			48.5			20
Total assets	$	4,029.2		$	3,719.0
Liabilities and Shareholders’ equity
Current liabilities:
Loans and overdrafts	$	19.3		$	—			18
Accounts payable		162.9			155.9
Accrued expenses and other current liabilities		328.5			326.4			15
Deferred revenue		173.0			159.7			16
Deferred tax liabilities		113.1			129.6			5
Income taxes		103.9			100.3
Total current liabilities		900.7			871.9
Non-current liabilities:
Other liabilities		121.7			111.3			17
Deferred revenue		443.7			405.9			16
Total liabilities		1,466.1			1,389.1
Commitments and contingencies								22
Shareholders’ equity:
Common shares of $0.18 par value: authorized 500 shares, 80.2 shares outstanding (2013: 81.4 outstanding)		15.7			15.7			21
Additional paid-in capital		258.8			246.3
Other reserves		235.2			235.2			21
Treasury shares at cost: 7.0 shares (2013: 5.8 shares)		(346.2	)		(260.0	)		21
Retained earnings		2,578.1			2,268.4			21
Accumulated other comprehensive loss		(178.5	)		(175.7	)
Total shareholders’ equity		2,563.1			2,329.9
Total liabilities and shareholders’ equity	$	4,029.2		$	3,719.0

The accompanying notes are an integral part of these consolidated financial statements.

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SIGNET JEWELERS LIMITED

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Fiscal 2014			Fiscal 2013			Fiscal 2012
(in millions)
Cash flows from operating activities
Net income	$	368.0		$	359.9		$	324.4
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property, plant and equipment		110.2			99.4			92.4
Pension (benefit) expense		(0.5	)		3.2			3.3
Share-based compensation		14.4			15.7			17.0
Deferred taxation		(20.4	)		4.3			29.3
Excess tax benefit from exercise of share awards		(6.5	)		(7.4	)		(3.9	)
Facility amendment fee amortization and charges		0.4			0.4			1.9
Other non-cash movements		(3.3	)		(1.4	)		0.3
Changes in operating assets and liabilities:
Increase in accounts receivable		(168.3	)		(117.1	)		(152.5	)
Increase in other receivables and other assets		(21.6	)		(1.3	)		(17.8	)
(Increase) decrease in other current assets		(3.9	)		(5.2	)		1.8
Increase in inventories		(98.4	)		(65.7	)		(115.2	)
Increase (decrease) in accounts payable		3.2			(39.6	)		57.2
Increase in accrued expenses and other liabilities		8.6			13.4			26.5
Increase in deferred revenue		50.8			40.6			28.9
Increase in income taxes payable		7.9			27.2			43.3
Pension plan contributions		(4.9	)		(13.7	)		(14.2	)
Effect of exchange rate changes on currency swaps		(0.2	)		—			2.5
Net cash provided by operating activities		235.5			312.7			325.2
Investing activities
Purchase of property, plant and equipment		(152.7	)		(134.2	)		(97.8	)
Acquisition of Ultra Stores, Inc., net of cash received		1.4			(56.7	)		—
Acquisition of diamond polishing factory		(9.1	)		—			—
Net cash used in investing activities		(160.4	)		(190.9	)		(97.8	)
Financing activities
Dividends paid		(46.0	)		(38.4	)		(8.7	)
Proceeds from issuance of common shares		9.3			21.6			10.6
Excess tax benefit from exercise of share awards		6.5			7.4			3.9
Repurchase of common shares		(104.7	)		(287.2	)		(12.7	)
Net settlement of equity based awards		(9.2	)		(11.5	)		—
Credit facility fees paid		—			—			(2.1	)
Proceeds from (repayment of) short-term borrowings		19.3			—			(31.0	)
Net cash used in financing activities		(124.8	)		(308.1	)		(40.0	)
Cash and cash equivalents at beginning of period		301.0			486.8			302.1
(Decrease) increase in cash and cash equivalents		(49.7	)		(186.3	)		187.4
Effect of exchange rate changes on cash and cash equivalents		(3.7	)		0.5			(2.7	)
Cash and cash equivalents at end of period	$	247.6		$	301.0		$	486.8
Supplemental cash flow information:
Interest paid	$	3.5		$	3.4		$	5.1
Income taxes paid		211.0			165.6			105.1

The accompanying notes are an integral part of these consolidated financial statements.

5

SIGNET JEWELERS LIMITED

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

	Common shares at par value		Additional paid-in- capital			Other reserves (Note 21)		Treasury shares			Retained earnings			Accumulated other comprehensive (loss) income			Total shareholders’ equity
(in millions)
Balance at January 29, 2011	$	15.5	$	196.8		$	235.2	$	—		$	1,662.3		$	(170.8	)	$	1,939.0
Net income		—		—			—		—			324.4			—			324.4
Other comprehensive income		—		—			—		—			—			11.6			11.6
Dividends		—		—			—		—			(17.4	)		—			(17.4	)
Repurchase of common shares		—		—			—		(12.7	)		—			—			(12.7	)
Share options exercised		0.1		14.5			—		—			—			—			14.6
Share-based compensation expense		—		19.6			—		—			—			—			19.6
Balance at January 28, 2012		15.6		230.9			235.2		(12.7	)		1,969.3			(159.2	)		2,279.1
Net income		—		—			—		—			359.9			—			359.9
Other comprehensive income		—		—			—		—			—			(16.5	)		(16.5	)
Dividends		—		—			—		—			(39.5	)		—			(39.5	)
Repurchase of common shares		—		—			—		(287.2	)		—			—			(287.2	)
Net settlement of equity based awards		—		(7.4	)		—		10.8			(14.9	)		—			(11.5	)
Share options exercised		0.1		7.1			—		29.1			(6.4	)		—			29.9
Share-based compensation expense		—		15.7			—		—			—			—			15.7
Balance at February 2, 2013		15.7		246.3			235.2		(260.0	)		2,268.4			(175.7	)		2,329.9
Net income		—		—			—		—			368.0			—			368.0
Other comprehensive income		—		—			—		—			—			(2.8	)		(2.8	)
Dividends		—		—			—		—			(48.2	)		—			(48.2	)
Repurchase of common shares		—		—			—		(104.7	)		—			—			(104.7	)
Net settlement of equity based awards		—		(1.7	)		—		7.1			(8.1	)		—			(2.7	)
Share options exercised		—		(0.2	)		—		11.4			(2.0	)		—			9.2
Share-based compensation expense		—		14.4			—		—			—			—			14.4
Balance at February 1, 2014	$	15.7	$	258.8		$	235.2	$	(346.2	)	$	2,578.1		$	(178.5	)	$	2,563.1

The accompanying notes are an integral part of these consolidated financial statements.

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SIGNET JEWELERS LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1. Principal accounting policies

Signet Jewelers Limited (“Signet”, or the “Company”) is a holding company, incorporated in Bermuda, that operates through its subsidiaries. Signet is a leading retailer whose results principally derive from one business segment—the retailing of jewelry, watches and associated services. The Company manages its business as two geographical reportable segments, being the United States of America (the “US”) and the United Kingdom (the “UK”). The US division operates retail stores under brands including Kay Jewelers, Jared The Galleria Of Jewelry and various regional brands. In Fiscal 2013, Ultra Stores Inc. was acquired by Signet, of which the majority of these stores were converted to the Kay brand during Fiscal 2014, with the remaining being accounted for within the regional brands. See Note 14. The UK division’s retail stores operate under brands including H.Samuel and Ernest Jones.

In the fourth quarter of Fiscal 2014, subsequent to the November 4, 2013 acquisition of a diamond polishing factory in Gaborone, Botswana, management established a separate operating segment (“Other”), which consists of all non-reportable segments including subsidiaries involved in the purchasing and conversion of rough diamonds to polished stones. See Note 14.

The following accounting policies have been applied consistently in the preparation of the Company’s financial statements with respect to items which are considered material in all reporting periods presented herein.

(a) Basis of preparation

The consolidated financial statements of Signet are prepared in accordance with US generally accepted accounting principles (“US GAAP”) and include the results of Signet and its subsidiaries for the 52 week period ended February 1, 2014 (“Fiscal 2014”), as Signet’s fiscal year ends on the Saturday nearest January 31. The comparative periods are for the 53 week period ended February 2, 2013 (“Fiscal 2013”) and the 52 week period ended January 28, 2012 (“Fiscal 2012”). Intercompany balances have been eliminated on consolidation.

(b) Use of estimates

The preparation of consolidated financial statements, in conformity with US GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates and assumptions are primarily made in relation to the valuation of receivables, inventories and deferred revenue, fair value of derivatives, depreciation and asset impairment, the valuation of employee benefits, income taxes and contingencies.

(c) Foreign currency translation

Assets and liabilities denominated in the UK pound sterling are translated into the US dollar at the exchange rate prevailing at the balance sheet date. Equity accounts denominated in the UK pound sterling are translated into US dollars at historical exchange rates. Revenues and expenses denominated in the UK pound sterling are translated into the US dollar at the monthly average exchange rate for the period and calculated each month from the weekly exchange rates weighted by sales of the UK division. Gains and losses resulting from foreign currency transactions are included within the consolidated income statement, whereas translation adjustments and gains and losses related to intercompany loans of a long-term investment nature are recognized as a component of accumulated other comprehensive income (loss) (“OCI”). In addition, as the majority of the sales and expenses related to the factory in Gaborone, Botswana are transacted in US dollars, there is no related foreign currency translation as the US dollar is the functional currency.

7

(d) Revenue recognition

Revenue is recognized when:

• there is persuasive evidence of an agreement or arrangement;

• delivery of products has occurred or services have been rendered;

• the seller’s price to the buyer is fixed and determinable; and

• collectability is reasonably assured.

Signet’s revenue streams and their respective accounting treatments are discussed below:

Merchandise sales

Store sales are recognized when the customer receives and pays for the merchandise at the store with cash, in-house customer finance or a third party credit card. For online sales, sales are recognized at the estimated time the customer has received the merchandise. Amounts related to shipping and handling that are billed to customers are reflected in sales and the related costs are reflected in cost of sales.

Revenue on the sale of merchandise is reported net of anticipated returns and sales tax collected. Returns are estimated based on previous return rates experienced.

Any deposits received from a customer for merchandise are deferred and recognized as revenue when the customer receives the merchandise.

Certain of Signet’s merchandise sales are derived from providing replacement merchandise on behalf of insurance organizations to their customers who have experienced a loss of their property. In these cases, the sales price is established by contract with the insurance organization and revenue on the sale is recognized upon receipt of the merchandise by the customer.

Merchandise repairs

Revenue on repair of merchandise is recognized when the service is complete and the customer collects the merchandise at the store.

Extended service plans and lifetime warranty agreements

The US division sells extended service plans where it is obliged, subject to certain conditions, to perform repair work over the lifetime of the product. Revenue from the sale of extended service plans is deferred over 14 years. Revenue is recognized in relation to the costs expected to be incurred in performing these services, with approximately 45% of revenue recognized within the first two years (February 2, 2013: 46%). The deferral period is determined from patterns of claims costs, including estimates of future claims costs expected to be incurred. Management reviews the trends in claims to assess whether changes are required to the revenue and cost recognition rates used. All direct costs associated with the sale of these plans are deferred and amortized in proportion to the revenue recognized and disclosed as either other current assets or other assets.

Signet also sells warranty agreements in the capacity of an agent on behalf of a third-party. The commission that Signet receives from the third-party is recognized at the time of the sale less an estimate of cancellations based on historical experience.

Sale vouchers

In connection with certain promotions, the Company gives customers making a purchase a voucher granting the customers a discount on a future purchase, redeemable within a stated time frame. The Company accounts for such vouchers by allocating the fair value of the voucher between the initial purchase and the future purchase.

8

The fair value of the voucher is determined based on the average sales transactions in which the vouchers were issued and the estimated average sales transactions when the vouchers are expected to be redeemed, combined with the estimated voucher redemption rate. The fair value allocated to the future purchase is recorded as deferred revenue.

Sale of consignment inventory

Sales of consignment inventory are accounted for on a gross sales basis. This reflects that the Company is the primary obligor providing independent advice, guidance and after sales service to customers. The products sold from consignment inventory are indistinguishable to the customer from other products that are sold from purchased inventory and are sold on the same terms. The Company selects the products and suppliers at its own discretion and is responsible for determining the selling price and the physical security of the products making it liable for any inventory loss. It also takes the credit risk of a sale to the customer.

(e) Cost of sales and selling, general and administrative expenses

Cost of sales includes merchandise costs net of discounts and allowances, freight, processing and distribution costs of moving merchandise from suppliers to distribution centers and to stores, inventory shrinkage, store operating and occupancy costs, net bad debts and charges for late payments under the US in-house customer finance programs. Store operating and occupancy costs include utilities, rent, real estate taxes, common area maintenance charges and depreciation. Selling, general and administrative expenses include store staff and store administrative costs, centralized administrative expenses, including information technology, credit and eCommerce, advertising and promotional costs, and other operating expenses not specifically categorized elsewhere in the consolidated income statements.

(f) Store opening costs

The opening costs of new locations are expensed as incurred.

(g) Advertising and promotional costs

Advertising and promotional costs are expensed within selling, general and administrative expenses. Production costs are expensed at the first communication of the advertisements, while communication expenses are recognized each time the advertisement is communicated. For catalogues and circulars, costs are all expensed at the first date they can be viewed by the customer. Point of sale promotional material is expensed when first displayed in the stores. Gross advertising costs totaled $253.8 million in Fiscal 2014 (Fiscal 2013: $245.8 million; Fiscal 2012: $208.6 million).

(h) Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation, amortization and impairment losses. Maintenance and repair costs are expensed as incurred. Depreciation and amortization are recognized on the straight-line method over the estimated useful lives of the related assets as follows:

Buildings	30 – 40 years when land is owned or the remaining term of lease, not to exceed 40 years
Leasehold improvements	Remaining term of lease, not to exceed 10 years
Furniture and fixtures	Ranging from 3 – 10 years
Equipment, including software	Ranging from 3 – 5 years

Equipment, which includes computer software purchased or developed for internal use, is stated at cost less accumulated amortization. Signet’s policy provides for the capitalization of external direct costs of materials and

9

services associated with developing or obtaining internal use computer software. In addition, Signet also capitalizes certain payroll and payroll-related costs for employees who are directly associated with internal use computer projects. Amortization is charged on a straight-line basis over periods from three to five years.

Property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Potentially impaired assets or asset groups are identified by reviewing the cash flows of individual stores. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the undiscounted cash flow is less than the asset’s carrying amount, the impairment charge recognized is determined by estimating the fair value of the assets and recording a loss for the amount that the carrying value exceeds the estimated fair value. Property and equipment at stores planned for closure are depreciated over a revised estimate of their useful lives.

(i) Goodwill and other intangibles

Goodwill represents the excess of the purchase price of acquisitions over the Company’s interest in the fair value of the identifiable assets and liabilities acquired. Goodwill is recorded by the Company’s reporting units based on the acquisitions made by each. Goodwill is not amortized, but is reviewed for impairment and is required to be tested at least annually or whenever events or changes in circumstances indicate it is more likely than not that a reporting unit’s fair value is less than its carrying value. The annual testing date for reporting units within the US and UK segments is the last day of the fourth quarter.

The Company may elect to perform a qualitative assessment for each reporting unit to determine whether it is more likely than not that the fair value of the reporting unit is greater than its carrying value. If a qualitative assessment is not performed, or if as a result of a qualitative assessment it is not more likely than not that the fair value of a reporting unit exceeds its carrying value, then the reporting unit’s fair value is compared to its carrying value. Fair value is determined through the income approach using discounted cash flow models or market-based methodologies. Significant estimates used in these discounted cash flow models include: the weighted average cost of capital; long-term growth rates; expected changes to selling prices, direct costs and profitability of the business; and working capital requirements. Management estimates discount rates using post-tax rates that reflect assessments of the time value of money and Company-specific risks. If the carrying value exceeds the estimated fair value, the Company determines the fair value of all assets and liabilities of the reporting unit, including the implied fair value of goodwill. If the carrying value of goodwill exceeds the implied fair value of goodwill, the Company recognizes an impairment charge equal to the difference.

Goodwill is recorded in other assets. See Note 12.

(j) Inventories

Inventories held in the US and UK division primarily represent goods held for resale and are valued at the lower of cost or market value. Cost is determined using average cost and includes costs directly related to bringing inventory to its present location and condition. These include relevant warehousing, distribution and certain buying, security and data processing costs. Market value is defined as estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution. Inventory write-downs are recorded for obsolete, slow moving or defective items and shrinkage. The write-down is equal to the difference between the cost of inventory and its estimated market value based upon assumptions of targeted inventory turn rates, future demand, management strategy and market conditions. Shrinkage is estimated and recorded based on historical physical inventory results, expectations of future inventory losses and current inventory levels. Physical inventories are taken at least once annually for all store locations and distribution centers.

Inventories held in the Company’s diamond sourcing operations are valued at the lower of cost, as determined on specific identification process, or market.

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(k) Vendor contributions

Contributions are received from vendors through various programs and arrangements including cooperative advertising. Where vendor contributions related to identifiable promotional events are received, these are matched against the costs of these promotions. Vendor contributions, which are received as general contributions and not related to specific promotional events, are recognized as a reduction of inventory costs.

(l) In-house customer finance programs

Signet’s US division operates customer in-house finance programs that allow customers to finance merchandise purchases from the US division’s stores. Signet recognizes finance charges in accordance with the contractual agreements. Gross interest earned is recorded as other operating income in the income statement. See Note 3. In addition to interest-bearing accounts, a significant proportion of credit sales are made using interest-free financing for one year or less, subject to certain conditions.

Accrual of interest is suspended when accounts become more than 90 days aged. Upon suspension of the accrual of interest, interest income is subsequently recognized to the extent cash payments are received. Accrual of interest is resumed when receivables are removed from non-accrual status.

(m) Accounts receivable

Accounts receivable are stated at their nominal amounts and primarily include account balances outstanding from Signet’s in-house customer finance programs. The finance receivables from the in-house customer finance programs are comprised of a large volume of transactions with no one customer representing a significant balance. The initial acceptance of customer finance arrangements is based on proprietary consumer credit scores. Subsequent to the initial finance purchase, Signet monitors the credit quality of its customer finance receivable portfolio based on payment activity that drives the aging of receivables. This credit quality indicator is assessed on a real-time basis by Signet.

Accounts receivable under the customer finance programs are shown net of an allowance for uncollectible amounts. See Note 10. This 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 and any amount associated with an account the owner of which has filed for bankruptcy, 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.

Allowances for uncollectible amounts are recorded as a charge to cost of sales in the income statement. Receivables are charged off to the allowance when amounts become more than 120 days aged on the recency method and more than 240 days aged on the contractual method. See Note 10.

(n) Leases

Assets held under capital leases relate to leases where substantially all the risks and rewards of the asset have passed to Signet. All other leases are defined as operating leases. Where operating leases include predetermined rent increases, those rents are charged to the income statement on a straight-line basis over the lease term, including any construction period or other rental holiday. Other amounts paid under operating leases are charged to the income statement as incurred. Premiums paid to acquire short-term leasehold properties and inducements to enter into a lease are recognized on a straight line basis over the lease term.

Certain leases provide for contingent rentals that are not measurable at inception. These contingent rentals are primarily based on a percentage of sales in excess of a predetermined level. These amounts are excluded from minimum rent and are included in the determination of rent expense when it is probable that the expense has been incurred and the amount is reasonably estimable.

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(o) Income taxes

Income taxes are accounted for using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements. Under this method, deferred tax assets and liabilities are recognized by applying statutory tax rates in effect in the years in which the differences between the financial reporting and tax filing bases of existing assets and liabilities are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. A valuation allowance is established against deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized.

At any point in time, various tax years are subject to, or are in the process of, audit by various taxing authorities. To the extent that management’s estimates of settlements change, or the final tax outcome of these matters is different than the amounts recorded, such differences will impact the income tax provision in the period in which such determinations are made.

(p) Employee benefits

Signet operates a defined benefit pension plan in the UK (the “UK Plan”) which ceased to admit new employees effective April 2004. The UK Plan provides benefits to participating eligible employees. Beginning in Fiscal 2014, a change to the benefit structure was implemented and members’ benefits that accumulate after that date are now based upon career average salaries, whereas previously, all benefits were based on salaries at retirement. The UK Plan’s assets are held by the UK Plan.

The net periodic pension cost of the UK Plan is measured on an actuarial basis using the projected unit credit method and several actuarial assumptions, the most significant of which are the discount rate and the expected long-term rate of return on plan assets. Other material assumptions include rates of participant mortality, the expected long-term rate of compensation and pension increases and rates of employee attrition. Gains and losses occur when actual experience differs from actuarial assumptions. If such gains or losses exceed 10% of the greater of plan assets or plan liabilities, Signet amortizes those gains or losses over the average remaining service period of the employees.

The net periodic pension cost is charged to selling, general and administrative expenses in the income statement.

The funded status of the UK Plan is recognized on the balance sheet, and is the difference between the fair value of plan assets and the benefit obligation measured at the balance sheet date. Any gains or losses and prior service costs or credits that arise during the period but are not included as components of net periodic pension cost are recognized, net of tax, in the period within other comprehensive (loss) income.

Signet also operates a defined contribution pension plan in the UK and sponsors a defined contribution 401(k) retirement savings plan in the US. Contributions made by Signet to these pension arrangements are charged primarily to selling, general and administrative expenses in the income statement as incurred.

(q) Derivative financial instruments and hedge accounting

Signet enters into various types of derivative instruments to mitigate certain risk exposures related to changes in commodity costs and foreign exchange rates. Derivative instruments are recorded in the consolidated balance sheets at fair value, as either assets or liabilities, with an offset to current or comprehensive income, depending on whether the derivative qualifies as an effective hedge.

If a derivative instrument meets certain hedge accounting criteria, it may be designated as a cash flow hedge on the date it is entered into. A cash flow hedge is a hedge of the exposure to variability in the cash flows of a recognized asset, liability or a forecasted transaction. For cash flow hedge transactions, the effective portion of the changes in fair value of derivatives is recognized directly in equity as a component of accumulated OCI and is recognized in the consolidated income statements in the same period(s) and on the same financial statement

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line in which the hedged item affects net income. Amounts excluded from the effectiveness calculation and any ineffective portions of the change in fair value of the derivatives are recognized immediately in other operating income, net in the consolidated income statements. In addition, gains and losses on derivatives that do not qualify for hedge accounting are recognized immediately in other operating income, net.

In the normal course of business, the Company may terminate cash flow hedges prior to the occurrence of the underlying forecasted transaction. For cash flow hedges terminated prior to the occurrence of the underlying forecasted transaction, management monitors the probability of the associated forecasted cash flow transactions to assess whether any gain or loss recorded in accumulated OCI should be immediately recognized in net income.

Cash flows from derivative contracts are included in net cash provided by operating activities.

(r) Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, money market deposits and amounts placed with external fund managers with an original maturity of three months or less, and are carried at cost which approximates fair value. In addition, receivables from third-party credit card issuers typically converted to cash within 5 days of the original sales transaction are considered cash equivalents.

(s) Borrowing costs

Borrowings comprise interest bearing bank loans and bank overdrafts. Borrowing costs are capitalized and amortized into interest expense over the contractual term of the related loan.

(t) Share-based compensation

Signet measures share-based compensation cost for awards classified as equity at the grant date, based on the estimated fair value of the award, and recognizes the cost as an expense on a straight-line basis (net of estimated forfeitures) over the requisite service period of employees. Certain of Signet’s share plans include a condition whereby vesting is contingent on growth exceeding a given target, and therefore awards granted with this condition are considered to be performance-based awards.

Signet estimates fair value using a Black-Scholes model for awards granted under the Omnibus Plan (as defined in Note 23 below) and the binomial valuation model for awards granted under the Share Saving Plans (as defined in Note 23 below). Deferred tax assets for awards that result in deductions on the income tax returns of subsidiaries are recorded by Signet based on the amount of compensation cost recognized and the subsidiaries’ statutory tax rate in the jurisdiction in which it will receive a deduction. Differences between the deferred tax assets recognized for financial reporting purposes and the actual tax deduction reported on the subsidiaries’ income tax return are recorded in additional paid-in-capital (if the tax deduction exceeds the deferred tax asset) or in the income statement (if the deferred tax asset exceeds the tax deduction and no additional paid-in-capital exists from previous awards).

Share-based compensation is primarily recorded in selling, general and administrative expenses in the income statement, along with the relevant salary cost.

See Note 23 for a further description of Signet’s share-based compensation plans.

(u) Contingent liabilities

Provisions for contingent liabilities are recorded for probable losses when management is able to reasonably estimate the loss or range of loss.

When it is reasonably possible that a contingent liability may result in a loss or additional loss, the range of the loss is disclosed.

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(v) Common shares

When new shares are issued, they are recorded in Common Shares at their par value. The excess of the issue price over the par value is recorded in additional paid-in capital.

(w) Dividends

Dividends are reflected as a reduction of retained earnings in the period in which they are formally approved by the Board of Directors (the “Board”).

(x) Recently issued accounting pronouncements

Adopted during the period

Reclassification out of Accumulated Other Comprehensive Income

In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” The new guidance does not change the current requirements for reporting net income or other comprehensive income, but it does require disclosure of amounts reclassified out of accumulated other comprehensive income by component, as well as require the presentation of these amounts on the face of the statements of comprehensive income or in the notes to the consolidated financial statements. ASU 2013-02 is effective for the reporting periods beginning after December 15, 2012. Signet adopted this guidance effective for the first quarter ended May 4, 2013 and the implementation of this accounting pronouncement did not have a material impact on Signet’s consolidated financial statements.

To be adopted in future periods

Presentation of Unrecognized Tax Benefit

In July 2013, the FASB issued ASU 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” The new guidance requires, unless certain conditions exist, an unrecognized tax benefit to be presented as a reduction to a deferred tax asset in the financial statements for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. The guidance in ASU 2013-11 will become effective for the Company prospectively for fiscal years beginning after December 15, 2013, and interim periods within those years, with early adoption permitted. Retrospective application is also permitted. Signet did not early adopt this guidance and it has determined that implementation will not have a material impact on Signet’s consolidated financial statements.

(y) Reclassification

Signet has reclassified the presentation of certain prior year information to conform to the current year presentation.

2. Segment information

Effective with the fourth quarter of Fiscal 2014, management changed the Company’s segment reporting in order to align with a change in its organizational and management reporting structure. Signet’s sales are derived from the retailing of jewelry, watches, other products and services. Signet has identified two geographical reportable segments, being the US and UK divisions. These segments represent channels of distribution that offer similar merchandise and services and have similar marketing and distribution strategies. Both divisions are managed by executive committees, which report to Signet’s Chief Executive Officer, who reports to the Board. Each divisional executive committee is responsible for operating decisions within parameters set by the Board. The performance of each segment is regularly evaluated based on sales and operating income.

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In the fourth quarter of Fiscal 2014, subsequent to the November 4, 2013 acquisition of a diamond polishing factory in Gaborone, Botswana, management established the Other operating segment which consists of all non-reportable segments including subsidiaries involved in the purchasing and conversion of rough diamonds to polished stones. This segment was determined to be non-reportable and will be aggregated with corporate administrative functions for segment reporting. Prior year results have been revised to reflect this change. All inter-segment sales and transfers are eliminated.

	Fiscal 2014			Fiscal 2013			Fiscal 2012
(in millions)
Sales:
US	$	3,517.6		$	3,273.9		$	3,034.1
UK		685.6			709.5			715.1
Other		6.0			—			—
Total sales	$	4,209.2		$	3,983.4		$	3,749.2
Operating income (loss):
US	$	553.2		$	547.8		$	478.0
UK		42.4			40.0			56.1
Other		(25.1	)		(27.3	)		(26.7	)
Total operating income	$	570.5		$	560.5		$	507.4
Depreciation and amortization:
US	$	88.8		$	75.9		$	69.0
UK		21.4			23.5			23.4
Other		—			—			—
Total depreciation and amortization	$	110.2		$	99.4		$	92.4
Capital additions:
US	$	134.2		$	110.9		$	75.6
UK		18.4			23.1			22.2
Other		0.1			0.2			—
Total capital additions	$	152.7		$	134.2		$	97.8
	February 1, 2014			February 2, 2013			January 28, 2012
(in millions)
Total assets:
US	$	3,311.0		$	2,979.2		$	2,747.5
UK		484.6			449.9			427.3
Other		233.6			289.9			436.6
Total assets	$	4,029.2		$	3,719.0		$	3,611.4
Total long-lived assets:
US	$	423.6		$	377.5		$	305.8
UK		81.1			76.8			77.0
Other		9.7			0.7			0.6
Total long-lived assets	$	514.4		$	455.0		$	383.4
Total liabilities:
US	$	1,299.3		$	1,243.4		$	1,166.3
UK		139.3			116.9			146.2
Other		27.5			28.8			19.8
Total liabilities	$	1,466.1		$	1,389.1		$	1,332.3

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Sales by product

	Fiscal 2014		Fiscal 2013		Fiscal 2012
(in millions)
Diamonds and diamond jewelry	$	2,552.1	$	2,410.7	$	2,183.3
Gold, silver jewelry, other products and services		1,236.9		1,116.5		1,133.5
Watches		420.2		456.2		432.4
Total sales	$	4,209.2	$	3,983.4	$	3,749.2

Sales to any individual customer were not significant to Signet’s consolidated sales.

3. Other operating income, net

	Fiscal 2014		Fiscal 2013		Fiscal 2012
(in millions)
Interest income from in-house customer finance programs	$	186.4	$	159.7	$	125.4
Other		0.3		1.7		1.1
Other operating income, net	$	186.7	$	161.4	$	126.5

4. Compensation and benefits

Compensation and benefits were as follows:

	Fiscal 2014		Fiscal 2013		Fiscal 2012
(in millions)
Wages and salaries	$	753.3	$	713.4	$	681.5
Payroll taxes		65.8		62.6		59.3
Employee benefit plans expense		10.2		12.9		11.3
Share-based compensation expense		14.4		15.7		17.0
Total compensation and benefits	$	843.7	$	804.6	$	769.1

5. Income taxes

	Fiscal 2014			Fiscal 2013		Fiscal 2012
(in millions)
Income before income taxes:
– US	$	493.7		$	494.3	$	423.2
– Foreign		72.8			62.6		78.9
Total income before income taxes	$	566.5		$	556.9	$	502.1
Current taxation:
– US	$	211.8		$	186.6	$	136.9
– Foreign		7.1			6.1		11.5
Deferred taxation:
– US		(22.8	)		3.1		26.1
– Foreign		2.4			1.2		3.2
Total income taxes	$	198.5		$	197.0	$	177.7

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

	Fiscal 2014			Fiscal 2013			Fiscal 2012
	%			%			%
US federal income tax rates		35.0			35.0			35.0
US state income taxes		2.5			2.7			2.7
Differences between US federal and foreign statutory income tax rates		(0.9	)		(0.6	)		(1.0	)
Expenditures permanently disallowable for tax purposes, net of permanent tax benefits		0.6			0.8			1.1
Benefit of intra-group financing and services arrangements		(2.1	)		(2.1	)		(2.0	)
Other items		(0.1	)		(0.4	)		(0.4	)
Effective tax rate		35.0			35.4			35.4

Signet’s effective tax rate is largely impacted by the relative proportion of US and foreign income tax expense. In Fiscal 2014, Signet’s effective tax rate was the same as the US federal income tax rate because the US state income tax expense was substantially offset by the benefit of intra-group financing and services arrangements. Signet’s future effective tax rate is dependent on changes in the geographic mix of income and the movement in foreign exchange translation rates.

Deferred tax assets (liabilities) consisted of the following:

	February 1, 2014									February 2, 2013
	Assets			(Liabilities)			Total			Assets			(Liabilities)			Total
(in millions)
US property, plant and equipment	$	—		$	(70.1	)	$	(70.1	)	$	—		$	(55.8	)	$	(55.8	)
Foreign property, plant and equipment		7.0			—			7.0			6.7			—			6.7
Inventory valuation		—			(169.2	)		(169.2	)		—			(188.6	)		(188.6	)
Allowances for doubtful accounts		39.7			—			39.7			36.6			—			36.6
Revenue deferral		134.3			—			134.3			122.4			—			122.4
Derivative instruments		6.9			—			6.9			—			—			—
Straight-line lease payments		27.5			—			27.5			26.8			—			26.8
Deferred compensation		9.9			—			9.9			7.7			—			7.7
Retirement benefit obligations		—			(12.0	)		(12.0	)		—			(11.2	)		(11.2	)
Share-based compensation		10.3			—			10.3			10.7			—			10.7
US state income tax accruals		5.3			—			5.3			5.6			—			5.6
Other temporary differences		15.0			—			15.0			16.2			—			16.2
Value of foreign capital losses		15.8			—			15.8			16.5			—			16.5
Total gross deferred tax asset (liability)	$	271.7		$	(251.3	)	$	20.4		$	249.2		$	(255.6	)	$	(6.4	)
Valuation allowance		(16.8	)		—			(16.8	)		(17.5	)		—			(17.5	)
Deferred tax asset (liability)	$	254.9		$	(251.3	)	$	3.6		$	231.7		$	(255.6	)	$	(23.9	)
Current assets							$	3.0								$	1.6
Current liabilities								(113.1	)								(129.6	)
Non-current assets								113.7									104.1
Deferred tax asset (liability)							$	3.6								$	(23.9	)

As of February 1, 2014 Signet had foreign gross capital loss carry forwards of $74.2 million (Fiscal 2013: $71.0 million) which are only available to offset future capital gains, if any, over an indefinite period.

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The decrease in the total valuation allowance in Fiscal 2014 was $0.7 million due to changes in foreign exchange translation and tax rates (Fiscal 2013: $3.6 million net decrease; Fiscal 2012: $1.5 million net decrease). The valuation allowance primarily relates to foreign capital loss carry forwards that, in the judgment of management, are not more likely than not to be realized.

Signet believes that it is more likely than not that deferred tax assets not subject to a valuation allowance as of February 1, 2014 will be offset where permissible by deferred tax liabilities or realized on future tax returns, primarily from the generation of future taxable income.

Signet has business activity in all states within the US and files income tax returns for the US federal jurisdiction and all applicable states. Signet also files income tax returns in the UK and certain other foreign jurisdictions. Signet is subject to US federal and state examinations by tax authorities for tax years after November 1, 2008 and is subject to examination by the UK tax authority for tax years after January 31, 2012.

As of February 1, 2014 Signet had approximately $4.6 million (Fiscal 2013: $4.5 million; Fiscal 2012: $4.8 million) of unrecognized tax benefits in respect of uncertain tax positions, all of which would favorably affect the effective income tax rate if resolved in Signet’s favor. These unrecognized tax benefits relate to financing arrangements and intra-group charges which are subject to different and changing interpretations of tax law.

Signet recognizes accrued interest and, where appropriate, penalties related to unrecognized tax benefits within income tax expense. In Fiscal 2014, the total amount of interest recognized in income tax expense in the consolidated income statement was $0.1 million, net charge (Fiscal 2013: $0.2 million, net credit; Fiscal 2012: $0.1 million, net credit). As of February 1, 2014, Signet had accrued interest of $0.3 million (Fiscal 2013: $0.2 million; Fiscal 2012: $0.4 million).

The following table summarizes the activity related to unrecognized tax benefits:

	Fiscal 2014			Fiscal 2013			Fiscal 2012
(in millions)
Balance at beginning of period	$	4.5		$	4.8		$	9.0
Increases related to current year tax positions		0.4			0.2			0.3
Prior year tax positions:
Increases		0.2			—			—
Decreases		—			—			(1.4	)
Cash settlements		(0.5	)		—			(2.6	)
Lapse of statute of limitations		—			(0.5	)		(0.5	)
Balance at end of period	$	4.6		$	4.5		$	4.8

Over the next twelve months management believes that it is reasonably possible that there could be a reduction of substantially all of the unrecognized tax benefits as of February 1, 2014, due to settlement of the uncertain tax positions with the tax authorities.

6. Earnings per share

	Fiscal 2014		Fiscal 2013		Fiscal 2012
(in millions, except per share amounts)
Net income	$	368.0	$	359.9	$	324.4
Basic weighted average number of shares outstanding		80.2		82.3		86.2
Dilutive effect of share awards		0.5		0.5		0.8
Diluted weighted average number of shares outstanding		80.7		82.8		87.0
Earnings per share – basic	$	4.59	$	4.37	$	3.76
Earnings per share – diluted	$	4.56	$	4.35	$	3.73

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The basic weighted average number of shares excludes non-vested time-based restricted shares, shares held by the Employee Stock Ownership Trust (“ESOT”) and treasury shares. Such shares are not considered outstanding and do not qualify for dividends, except for time-based restricted shares for which dividends are earned and payable by the Company subject to full vesting. The effect of excluding these shares is to reduce the average number of shares in Fiscal 2014 by 6,961,632 (Fiscal 2013: 4,882,625; Fiscal 2012: 576,427). The calculation of fully diluted EPS for Fiscal 2014 excludes share awards to acquire 70,447 shares (Fiscal 2013: 192,374 share awards; Fiscal 2012: 375,071 share awards) on the basis that their effect on EPS was anti-dilutive.

7. Dividends

	Fiscal 2014					Fiscal 2013					Fiscal 2012
	Cash dividend per share		Total dividends			Cash dividend per share		Total dividends			Cash dividend per share		Total dividends
			(in millions)					(in millions)					(in millions)
First quarter	$	0.15	$	12.1		$	0.12	$	10.3		$	—	$	—
Second quarter		0.15		12.1			0.12		9.6			—		—
Third quarter		0.15		12.0			0.12		9.8			0.10		8.7
Fourth quarter(1)		0.15		12.0	(2)		0.12		9.8	(2)		0.10		8.7
Total	$	0.60	$	48.2		$	0.48	$	39.5		$	0.20	$	17.4

(1) Signet’s dividend policy results in the dividend payment date being a quarter in arrears from the declaration date. As a result, the dividend declared in the fourth quarter of each fiscal year is paid in the subsequent fiscal year. The dividends are reflected in the consolidated statement of cash flows upon payment.

(2) As of February 1, 2014 and February 2, 2013, $12.0 million and $9.8 million, respectively, has been recorded in accrued expenses and other current liabilities in the consolidated balance sheets reflecting the cash dividends declared for the fourth quarter of Fiscal 2014 and Fiscal 2013, respectively.

In addition, on March 26, 2014, Signet’s Board of Directors declared a quarterly dividend of $0.18 per share on its Common Shares. This dividend will be payable on May 28, 2014 to shareholders of record on May 2, 2014, with an ex-dividend date of April 30, 2014.

8. Accumulated other comprehensive income (loss)

The following tables present the changes in accumulated OCI by component and the reclassifications out of accumulated OCI:

							Pension plan
	Foreign currency translation			Gains (losses) on cash flow hedges			Actuarial (losses) gains			Prior service credit (cost)			Accumulated other comprehensive (loss) income
(in millions)
Balance at January 29, 2011	$	(145.0	)	$	5.9		$	(46.0	)	$	14.3		$	(170.8	)
OCI before reclassifications		(3.9	)		32.2			(7.3	)		5.5			26.5
Amounts reclassified from accumulated OCI		—			(16.0	)		1.8			(0.7	)		(14.9	)
Net current-period OCI		(3.9	)		16.2			(5.5	)		4.8			11.6
Balance at January 28, 2012		(148.9	)		22.1			(51.5	)		19.1			(159.2	)
OCI before reclassifications		(0.5	)		(6.7	)		4.7			(0.8	)		(3.3	)
Amounts reclassified from accumulated OCI		—			(14.4	)		2.4			(1.2	)		(13.2	)
Net current-period OCI		(0.5	)		(21.1	)		7.1			(2.0	)		(16.5	)
Balance at February 2, 2013		(149.4	)		1.0			(44.4	)		17.1			(175.7	)
OCI before reclassifications		12.4			(22.0	)		0.2			(0.7	)		(10.1	)
Amounts reclassified from accumulated OCI		—			6.7			1.7			(1.1	)		7.3
Net current-period OCI		12.4			(15.3	)		1.9			(1.8	)		(2.8	)
Balance at February 1, 2014	$	(137.0	)	$	(14.3	)	$	(42.5	)	$	15.3		$	(178.5	)

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The amounts reclassified from accumulated OCI were as follows:

Reclassification activity by individual accumulated OCI component:	Fiscal 2014			Fiscal 2013			Fiscal 2012			Income statement caption
	Amounts reclassified from accumulated OCI			Amounts reclassified from accumulated OCI			Amounts reclassified from accumulated OCI
(in millions)
(Gains) losses on cash flow hedges:
Foreign currency contracts	$	(0.9	)	$	(0.4	)	$	(0.1	)	Cost of sales (see Note 19)
Commodity contracts		12.0			(22.0	)		(24.5	)	Cost of sales (see Note 19)
Total before income tax		11.1			(22.4	)		(24.6	)
		(4.4	)		8.0			8.6		Income taxes
Net of tax		6.7			(14.4	)		(16.0	)
Defined benefit pension plan items:
Amortization of unrecognized net prior service credit		(1.5	)		(1.6	)		(1.0	)	Selling, general and administrative expenses(1)
Amortization of unrecognized actuarial loss		2.3			3.2			2.6		Selling, general and administrative expenses(1)
Total before income tax		0.8			1.6			1.6
		(0.2	)		(0.4	)		(0.5	)	Income taxes
Net of tax		0.6			1.2			1.1
Total reclassifications, net of tax	$	7.3		$	(13.2	)	$	(14.9	)

(1) These items are included in the computation of net periodic pension benefit (cost). See Note 20 for additional information.

9. Cash and cash equivalents

	February 1, 2014		February 2, 2013
(in millions)
Cash and cash equivalents held in money markets and other accounts	$	225.3	$	276.6
Cash equivalents from third-party credit card issuers		21.1		23.2
Cash on hand		1.2		1.2
Total cash and cash equivalents	$	247.6	$	301.0

10. 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 and any amount associated with an account the

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owner of which has filed for bankruptcy, 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.

	February 1, 2014		February 2, 2013
(in millions)
Accounts receivable by portfolio segment, net:
US customer in-house finance receivables	$	1,356.0	$	1,192.9
Other accounts receivable		18.0		12.4
Total accounts receivable, net	$	1,374.0	$	1,205.3

Signet grants credit to customers based on a variety of credit quality indicators, including consumer 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 primarily of gross accounts receivable relating to the insurance loss replacement business in the UK division of $12.8 million (Fiscal 2013: $13.0 million), with a corresponding valuation allowance of $0.3 million (Fiscal 2013: $0.6 million).

Allowance for credit losses on US customer in-house finance receivables:

	Fiscal 2014			Fiscal 2013			Fiscal 2012
(in millions)
Beginning balance:	$	(87.7	)	$	(78.1	)	$	(67.8	)
Charge-offs		128.2			112.8			92.8
Recoveries		26.0			21.8			19.3
Provision		(164.3	)		(144.2	)		(122.4	)
Ending balance	$	(97.8	)	$	(87.7	)	$	(78.1	)
Ending receivable balance evaluated for impairment		1,453.8			1,280.6			1,155.5
US customer in-house finance receivables, net	$	1,356.0		$	1,192.9		$	1,077.4

Net bad debt expense is defined as the provision expense less recoveries.

Credit quality indicator and age analysis of past due US customer in-house finance receivables:

	February 1, 2014					February 2, 2013					January 28, 2012
	Gross		Valuation allowance			Gross		Valuation allowance			Gross		Valuation allowance
(in millions)
Performing:
Current, aged 0 – 30 days	$	1,170.4	$	(36.3	)	$	1,030.3	$	(33.8	)	$	932.6	$	(28.9	)
Past due, aged 31 – 90 days		229.9		(8.0	)		203.9		(7.5	)		180.2		(6.5	)
Non Performing:
Past due, aged more than 90 days		53.5		(53.5	)		46.4		(46.4	)		42.7		(42.7	)
	$	1,453.8	$	(97.8	)	$	1,280.6	$	(87.7	)	$	1,155.5	$	(78.1	)

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	February 1, 2014						February 2, 2013						January 28, 2012
	Gross			Valuation allowance			Gross			Valuation allowance			Gross			Valuation allowance
(as a percentage of the ending receivable balance)
Performing		96.3	%		3.2	%		96.4	%		3.3	%		96.3	%		3.2	%
Non Performing		3.7	%		100.0	%		3.6	%		100.0	%		3.7	%		100.0	%
		100.0	%		6.7	%		100.0	%		6.8	%		100.0	%		6.8	%

11. Inventories

Signet held $312.6 million of consignment inventory at February 1, 2014 (February 2, 2013: $227.7 million) which is not recorded on the balance sheet. The principal terms of the consignment agreements, which can generally be terminated by either party, are such that Signet can return any or all of the inventory to the relevant suppliers without financial or commercial penalties and the supplier can vary the inventory prices prior to sale.

Inventories

	February  1, 2014		February  2, 2013
(in millions)
Raw materials	$	41.8	$	41.2
Finished goods		1,446.2		1,355.8
Total inventories	$	1,488.0	$	1,397.0

Inventory reserves

	Balance at beginning of period		Charged to profit		Utilized(1)			Balance at end of period
(in millions)
Fiscal 2012	$	27.8	$	18.4	$	(16.9	)	$	29.3
Fiscal 2013		29.3		23.6		(29.5	)		23.4
Fiscal 2014		23.4		33.3		(40.4	)		16.3

(1) Including the impact of foreign exchange translation between opening and closing balance sheet dates.

12. Other assets

	February 1, 2014		February 2, 2013
(in millions)
Deferred extended service plan costs	$	61.9	$	56.9
Goodwill		26.8		24.6
Other assets		25.3		18.4
Total other assets	$	114.0	$	99.9

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Goodwill

The following table summarizes the Company’s goodwill by reporting unit:

	US			UK		Other		Total
(in millions)
Balance at January 28, 2012	$	—		$	—	$	—	$	—
Acquisition(1)		24.6			—		—		24.6
Balance at February 2, 2013		24.6			—		—		24.6
Acquisitions(1)		(1.4	)		—		3.6		2.2
Balance at February 1, 2014	$	23.2		$	—	$	3.6	$	26.8

(1) See Note 14 for additional discussion of the goodwill recorded by the Company during Fiscal 2014 and Fiscal 2013.

The Company’s reporting units align with the operating segments disclosed in Note 2. There have been no goodwill impairment losses recorded during the fiscal periods presented in the consolidated income statements. If future economic conditions are different than those projected by management, future impairment charges may be required.

13. Property, plant and equipment, net

	February 1, 2014			February 2, 2013
(in millions)
Land and buildings	$	37.2		$	32.5
Leasehold improvements		461.4			419.3
Furniture and fixtures		537.3			503.4
Equipment, including software		221.1			183.8
Construction in progress		18.7			15.5
Total	$	1,275.7		$	1,154.5
Accumulated depreciation and amortization		(788.1	)		(724.1	)
Property, plant and equipment, net	$	487.6		$	430.4

Depreciation and amortization expense for Fiscal 2014 was $110.2 million (Fiscal 2013: $99.4 million; Fiscal 2012: $92.4 million). The expense for Fiscal 2014 includes $0.7 million (Fiscal 2013: $2.6 million; Fiscal 2012: $1.4 million) for impairment of assets.

14. Acquisitions

Botswana diamond polishing factory acquisition

On November 4, 2013, Signet acquired a diamond polishing factory in Gaborone, Botswana for $9.1 million. The acquisition expands the Company’s long-term diamond sourcing capabilities and provides resources for the Company to cut and polish stones.

The transaction was accounted for as a business combination during the fourth quarter of Fiscal 2014. The Company is in the process of finalizing the valuation of the net assets acquired, most notably the valuation of property, plant and equipment. The total consideration paid by the Company was funded through existing cash and allocated to the net assets acquired based on the preliminary fair values as follows: property, plant and equipment acquired of $5.5 million and goodwill of $3.6 million. None of the goodwill will be deductible for income tax purposes. The goodwill balance is recorded within other assets in the consolidated balance sheet. See Note 12.

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Acquisition-related costs incurred prior to closing the transaction were immaterial. The results of operations related to the acquired diamond polishing factory are reported within the Other operating segment of Signet’s consolidated results and included in Signet’s consolidated financial statements commencing on the date of acquisition in the Other operating segment. Pro forma results of operations have not been presented, as the impact on the Company’s consolidated financial results was not material.

Ultra acquisition

On October 29, 2012, Signet acquired the outstanding shares of Ultra Stores, Inc. (the “Ultra Acquisition”). The Company paid $56.7 million, net of acquired cash of $1.5 million, for the Ultra Acquisition, including a $1.4 million working capital adjustment at closing. The total consideration paid was funded through existing cash.

On May 15, 2013, the post-closing procedures were finalized and a reduction to the initial purchase price was agreed to. As a result, total consideration paid for the Ultra Acquisition was reduced to $55.3 million. The refund of $1.4 million from the initial consideration paid was received during the second quarter of Fiscal 2014.

Signet incurred approximately $3.0 million of acquisition-related expenses, which were expenses as incurred during Fiscal 2013 and recorded as selling, general and administrative expenses in the consolidated income statement. The results of operations related to the Ultra Acquisition are reported as a component of the results of the US division and included in Signet’s consolidated financial statements commencing on the date of acquisition. Pro forma results of operations have not been presented, as the impact on the Company’s consolidated financial results were not material.

The Ultra Acquisition was accounted for as a business combination during the fourth quarter of Fiscal 2013. During the first quarter of Fiscal 2014, the Company finalized the valuation of net assets acquired. There were no material changes to the valuation of net assets acquired from the initial allocation reported during the fourth quarter of Fiscal 2013. Accordingly, the total consideration paid has been allocated to the net assets acquired based on the final fair values at October 29, 2012 as follows:

	Initial Allocation			Final Allocation			Change
(in millions)
Recognized amounts of assets acquired and liabilities assumed:
Inventories	$	43.3		$	43.3		$	—
Other current assets, excluding cash acquired		3.3			3.3			—
Property and equipment		12.1			12.1			—
Other assets		0.3			0.3			—
Current liabilities		(19.5	)		(19.5	)		—
Other liabilities		(7.4	)		(7.4	)		—
Fair value of net assets acquired	$	32.1		$	32.1		$	—
Goodwill(1)		24.6			23.2			(1.4	)
Total consideration	$	56.7		$	55.3		$	(1.4	)

(1) None of the goodwill will be deductible for income tax purposes. The goodwill balance is recorded within other assets in the consolidated balance sheet. See Note 12.

During Fiscal 2014, the majority of the acquired stores were converted to the Kay brand, with the remaining stores being reflected under regional brands.

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15. Accrued expenses and other current liabilities

	February 1, 2014		February 2, 2013
(in millions)
Accrued compensation	$	81.3	$	85.9
Other liabilities		50.1		48.7
Other taxes		31.7		31.9
Payroll taxes		8.0		7.4
Accrued expenses		157.4		152.5
Total accrued expenses and other current liabilities	$	328.5	$	326.4

Sales returns reserve included in accrued expenses above:

	Balance at beginning of period		Net adjustment(1)			Balance at end of period
(in millions)
Fiscal 2012	$	7.7	$	(0.4	)	$	7.3
Fiscal 2013		7.3		0.3			7.6
Fiscal 2014		7.6		0.8			8.4

(1) Net adjustment relates to sales returns previously provided for and changes in estimate and the impact of foreign exchange translation between opening and closing balance sheet dates.

The US division provides a product lifetime diamond and color gemstone guarantee as long as six-month inspections are performed and certified by an authorized store representative. Provided the customer has complied with the six month inspection policy, Signet will replace, at no cost to the customer, any stone that chips, breaks or is lost from its original setting during normal wear. Management estimates the warranty accrual based on the lag of actual claims experience and the costs of such claims, inclusive of labor and material. Warranty reserve for diamond and gemstone guarantee were as follows:

	Balance at beginning of period		Warranty expense		Utilized			Balance at end of period
(in millions)
Fiscal 2012	$	13.0	$	7.9	$	(5.8	)	$	15.1
Fiscal 2013		15.1		8.6		(5.2	)		18.5
Fiscal 2014		18.5		7.4		(6.8	)		19.1

Disclosed as:	February 1, 2014		February 2, 2013
(in millions)
Current liabilities(1)	$	6.7	$	6.9
Non-current liabilities (see Note 17)		12.4		11.6
Total warranty reserve	$	19.1	$	18.5

(1) Included within accrued expenses above.

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16. Deferred revenue

Deferred revenue is comprised primarily of extended service plans (“ESP”) and voucher promotions and other as follows:

	February 1, 2014		February 2, 2013
(in millions)
ESP deferred revenue	$	601.2	$	549.7
Voucher promotions and other		15.5		15.9
Total deferred revenue	$	616.7	$	565.6
Disclosed as:
Current liabilities	$	173.0	$	159.7
Non-current liabilities		443.7		405.9
Total deferred revenue	$	616.7	$	565.6

ESP deferred revenue

	Balance at beginning of period		Plans sold		Revenue recognized			Balance at end of period
(in millions)
Fiscal 2012	$	481.1	$	187.0	$	(156.4	)	$	511.7
Fiscal 2013		511.7		205.1		(167.1	)		549.7
Fiscal 2014		549.7		223.3		(171.8	)		601.2

17. Other liabilities—non-current

	February 1, 2014		February 2, 2013
(in millions)
Straight-line rent	$	67.1	$	65.6
Deferred compensation		25.0		18.5
Warranty reserve		12.4		11.6
Lease loss reserve		5.8		8.1
Other liabilities		11.4		7.5
Total other liabilities	$	121.7	$	111.3

A lease loss reserve is recorded for the net present value of the difference between the contractual rent obligations and the rate at which income is received or expected to be received from subleasing the properties.

	February 1, 2014			February 2, 2013
(in millions)
At beginning of period:	$	8.1		$	9.6
Adjustments, net		(1.6	)		(1.1	)
Utilization(1)		(0.7	)		(0.4	)
At end of period	$	5.8		$	8.1

(1) Including the impact of foreign exchange translation between opening and closing balance sheet dates.

The cash expenditures on the remaining lease loss reserve are expected to be paid over the various remaining lease terms through 2023.

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18. Loans, overdrafts and long-term debt

Loans and overdrafts

(in millions)	February 1, 2014		February  2, 2013
Current liabilities – loans and overdrafts
Revolving credit facility	$	—	$	—
Bank overdrafts		19.3		—
Total loans and overdrafts	$	19.3	$	—

Revolving credit facility

On May 24, 2011, Signet Jewelers Limited and certain of its subsidiaries as “Borrowers” entered into a $400 million senior unsecured multi-currency five year revolving credit agreement (the “Credit Agreement”) with various financial institutions as the lenders (the “Lenders”), JPMorgan Chase Bank, N.A., as Administrative Agent, Barclays Capital, as Syndication Agent, and JPMorgan Securities LLC and Barclays Capital as the joint lead arrangers. Borrowings under the Credit Agreement may be used for working capital and general corporate purposes. The Company has guaranteed the obligations of the Borrowers under the Credit Agreement and is also directly bound by certain of the covenants contained in the Credit Agreement.

Under the Credit Agreement, the Borrowers are able to borrow from time to time in an aggregate amount up to $400 million, including issuing letters of credit in an aggregate amount at any time outstanding not to exceed $100 million. The Credit Agreement contains an expansion option that, with the consent of the Lenders or the addition of new lenders, and subject to certain conditions, availability under the Credit Agreement may be increased by an additional $200 million at the request of the Borrowers. The Credit Agreement has a five year term and matures in May 2016, at which time all amounts outstanding under the Credit Agreement will be due and payable.

Borrowings under the Credit Agreement bear interest, at the Borrowers’ option, at either a base rate (as defined in the Credit Agreement), or an adjusted LIBOR (a “Eurocurrency Borrowing”), in each case plus an applicable margin rate based on the Company’s “Fixed Charge Coverage Ratio” (as defined in the Credit Agreement). Interest is payable on the last day of each March, June, September and December, or at the end of each interest period for a Eurocurrency Borrowing, but not less often than every three months. Commitment fee rates range from 0.20% to 0.35% based on the Company’s Fixed Charge Coverage Ratio and are payable quarterly in arrears and on the date of termination or expiration of commitments.

The Credit Agreement limits the ability of the Company and certain of its subsidiaries to, among other things and subject to certain baskets and exceptions contained therein, incur debt, create liens on assets, make investments outside of the ordinary course of business, sell assets outside of the ordinary course of business, enter into merger transactions and enter into unrelated businesses. The Credit Agreement permits the making of dividend payments and stock repurchases so long as the Company (i) is not in default under the Credit Agreement, or (ii) if in default at the time of making such dividend payment or stock repurchase, has no loans outstanding under the Credit Agreement or more than $10 million in letters of credit issued under the Credit Agreement. The Credit Agreement also contains various customary representations and warranties, financial reporting requirements and other affirmative and negative covenants. The Credit Agreement requires that the Company maintain at all times a “Leverage Ratio” (as defined in the Credit Agreement) to be no greater than 2.50 to 1.00 and a “Fixed Charge Coverage Ratio” (as defined in the Credit Agreement) to be no less than 1.40 to 1.00, both determined as of the end of each fiscal quarter of the Company for the trailing four quarters. As of February 1, 2014 and February 2, 2013, Signet was in compliance with all debt covenants.

The commitments may be terminated and amounts outstanding under the Credit Agreement may be accelerated upon the occurrence of certain events of default as set forth in the Credit Agreement. These include failure to

27

make principal or interest payments when due, certain insolvency or bankruptcy events affecting the Company or certain of its subsidiaries and breaches of covenants and representations or warranties.

No borrowings were drawn on the facility as of February 1, 2014 and February 2, 2013. Stand-by letters of credit of $10.1 million were drawn on the facility at February 1, 2014 (February 2, 2013: $9.5 million), with no significant intra-period fluctuations.

As of February 1, 2014, there were $19.3 million in overdrafts, which represents issued and outstanding checks where there are no bank balances with the right to offset. There were no overdrafts as of February 2, 2013.

Capitalized fees

Capitalized amendment fees for the Credit Agreement were $2.1 million, with $1.2 million and $0.8 million of accumulated amortization as of February 1, 2014 and February 2, 2013, respectively. In Fiscal 2014, $0.4 million was charged to the income statement (Fiscal 2013: $0.4 million; Fiscal 2012: $1.9 million). In Fiscal 2012, $0.2 million of the capitalized balance was amortized as it related to the 2008 Facility. Following the effectiveness of the new Credit Agreement, the remaining $1.3 million of capitalized fees for the 2008 Facility were written off.

19. Financial instruments and fair value

Signet’s principal financial instruments are comprised of cash, cash deposits/investments and overdrafts, accounts receivable and payable, derivatives and a revolving credit facility. Signet does not enter into derivative transactions for trading purposes. Derivative transactions are used by Signet for risk management purposes to address risks inherent in Signet’s business operations and sources of finance. The main risks arising from Signet’s operations are market risk including foreign currency risk and commodity risk, liquidity risk and interest rate risk. Signet uses these financial instruments to manage and mitigate these risks under policies reviewed and approved by the Board.

Market risk

Signet generates revenues and incurs expenses in US dollars and pounds sterling. As a portion of Signet’s UK division purchases are denominated in US dollars, Signet enters into forward foreign currency exchange contracts, foreign currency option contracts and foreign currency swaps to manage this exposure to the US dollar.

Signet holds a fluctuating amount of pounds sterling cash reflecting the cash generative characteristics of the UK division. Signet’s objective is to minimize net foreign exchange exposure to the income statement on pound sterling denominated items through managing this level of cash, pound sterling denominated intercompany balances and US dollar to pound sterling swaps. In order to manage the foreign exchange exposure and minimize the level of pound sterling cash held by Signet, the pound sterling denominated subsidiaries pay dividends regularly to their immediate holding companies and excess pounds sterling are sold in exchange for US dollars.

Signet’s policy is to minimize the impact of precious metal commodity price volatility on operating results through the use of outright forward purchases of, or by entering into either purchase options or net zero-cost collar arrangements to purchase, precious metals within treasury guidelines approved by the Board. In particular, Signet undertakes some hedging of its requirement for gold through the use of options, net zero-cost collar arrangements (a combination of call and put option contracts), forward contracts and commodity purchasing, while fluctuations in the cost of diamonds are not hedged.

Liquidity risk

Signet’s objective is to ensure that it has access to, or the ability to generate sufficient cash from either internal or external sources in a timely and cost-effective manner to meet its commitments as they become due and payable.

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Signet manages liquidity risks as part of its overall risk management policy. Management produces forecasting and budgeting information that is reviewed and monitored by the Board. Cash generated from operations and external financing are the main source of funding supplementing Signet’s resources in meeting liquidity requirements.

The main external source of funding is a $400 million senior unsecured multi-currency five year revolving credit facility, under which there were no borrowings as of February 1, 2014 or February 2, 2013.

Interest rate risk

Signet may enter into various interest rate protection agreements in order to limit the impact of movements in interest rates on its cash or borrowings. There were no interest rate protection agreements outstanding as of February 1, 2014 or February 2, 2013.

Credit risk and concentrations of credit risk

Credit risk represents the loss that would be recognized at the reporting date if counterparties failed to perform as contracted. Signet does not anticipate non-performance by counterparties of its financial instruments, except for customer in-house financing receivables as disclosed in Note 10. Signet does not require collateral or other security to support cash investments or financial instruments with credit risk; however it is Signet’s policy to only hold cash and cash equivalent investments and to transact financial instruments with financial institutions with a certain minimum credit rating. Management does not believe Signet is exposed to any significant concentrations of credit risk that arise from cash and cash equivalent investments, derivatives or accounts receivable.

Derivatives

The following types of derivative financial instruments are utilized by Signet to mitigate certain risk exposures related to changes in commodity prices and foreign exchange rates:

Forward foreign currency exchange contracts (designated)—These contracts, which are principally in US dollars, are entered into in order to limit the impact of movements in foreign exchange rates on forecasted foreign currency purchases. The total notional amount of these foreign currency contracts outstanding as of February 1, 2014 was $42.3 million (February 2, 2013: $50.8 million). These contracts have been designated as cash flow hedges and will be settled over the next 12 months (February 2, 2013: 12 months).

Forward foreign currency exchange contracts (undesignated)—Foreign currency contracts not designated as cash flow hedges are used to hedge currency flows through Signet’s bank accounts to mitigate Signet’s exposure to foreign currency exchange risk in its cash and borrowings. The total notional amount of these foreign currency contracts outstanding as of February 1, 2014 was $22.1 million (February 2, 2013: $36.1 million).

Commodity forward purchase contracts and net zero-cost collar arrangements—These contracts are entered into in order to reduce Signet’s exposure to significant movements in the price of the underlying precious metal raw material. The total notional amount of these commodity derivative contracts outstanding as of February 1, 2014 was $63.0 million (February 2, 2013: $187.6 million). These contracts have been designated as cash flow hedges and will be settled over the next 12 months (February 2, 2013: 11 months).

The bank counterparties to the derivative contracts expose Signet to credit-related losses in the event of their nonperformance. However, to mitigate that risk, Signet only contracts with counterparties that meet certain minimum requirements under its counterparty risk assessment process. As of February 1, 2014, Signet believes that this credit risk did not materially change the fair value of the foreign currency or commodity contracts.

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The following table summarizes the fair value and presentation of derivative instruments in the consolidated balance sheets:

	Derivative assets
		Fair value
	Balance sheet location	February 1, 2014		February 2, 2013
(in millions)
Derivatives designated as hedging instruments:
Foreign currency contracts	Other current assets	$	—	$	1.0
Foreign currency contracts	Other assets		—		—
Commodity contracts	Other current assets		0.8		2.8
Commodity contracts	Other assets		—		—
			0.8		3.8
Derivatives not designated as hedging instruments:
Foreign currency contracts	Other current assets		0.2		—
Total derivative assets		$	1.0	$	3.8

	Derivative liabilities
		Fair value
	Balance sheet location	February 1, 2014			February 2, 2013
(in millions)
Derivatives designated as hedging instruments:
Foreign currency contracts	Other current liabilities	$	(2.1	)	$	—
Foreign currency contracts	Other liabilities		—			—
Commodity contracts	Other current liabilities		(0.8	)		(4.6	)
Commodity contracts	Other liabilities		—			—
			(2.9	)		(4.6	)
Derivatives not designated as hedging instruments:
Foreign currency contracts	Other current liabilities		—			—
Total derivative liabilities		$	(2.9	)	$	(4.6	)

Derivatives designated as cash flow hedges

The following table summarizes the pre-tax gains (losses) recorded in accumulated OCI for derivatives designated in cash flow hedging relationships:

	February 1, 2014			February 2, 2013
(in millions)
Foreign currency contracts	$	(2.3	)	$	1.3
Commodity contracts		(18.8	)(1)		(0.5	)
Total	$	(21.1	)	$	0.8

(1) Includes losses of $18.2 million related to commodity contracts terminated prior to contract maturity in Fiscal 2014.

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The following tables summarize the effect of derivative instruments designated as cash flow hedges in OCI and the consolidated income statements:

Foreign currency contracts

	Income statement caption		Fiscal 2014			Fiscal 2013
(in millions)
Gains (losses) recorded in accumulated OCI, beginning of year			$	1.3		$	1.2
Current period (losses) gains recognized in OCI				(2.7	)		0.5
(Gains) losses reclassified from accumulated OCI to net income		Cost of sales		(0.9	)		(0.4	)
(Losses) gains recorded in accumulated OCI, end of year			$	(2.3	)	$	1.3

Commodity contracts

	Income statement caption		Fiscal 2014			Fiscal 2013
(in millions)
(Losses) gains recorded in accumulated OCI, beginning of year			$	(0.5	)	$	32.4
Current period (losses) gains recognized in OCI				(30.3	)(1)		(10.9	)
Losses (gains) reclassified from accumulated OCI to net income		Cost of sales		12.0			(22.0	)
(Losses) gains recorded in accumulated OCI, end of year			$	(18.8	)	$	(0.5	)

(1) Includes losses of $27.8 million related to the change in fair value of commodity contracts the Company terminated prior to contract maturity in Fiscal 2014.

There was no material ineffectiveness related to the Company’s derivative instruments designated in cash flow hedging relationships for the years ended February 1, 2014 and February 2, 2013. Based on current valuations, the Company expects approximately $19.5 million of net pre-tax derivative losses to be reclassified out of accumulated OCI into earnings within the next 12 months.

Derivatives not designated as hedging instruments

The following table presents the effects of the Company’s derivatives instruments not designated as cash flow hedges in the consolidated income statements:

	Income statement caption		Amount of gain  (loss) recognized in income
			Fiscal 2014			Fiscal 2013
(in millions)
Derivatives not designated as hedging instruments:
Foreign currency contracts		Other operating income, net	$	(5.5	)	$	—
Total			$	(5.5	)	$	—

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Fair value

The estimated fair value of Signet’s financial instruments held or issued to finance Signet’s operations is summarized below. Certain estimates and judgments were required to develop the fair value amounts. The fair value amounts shown below are not necessarily indicative of the amounts that Signet would realize upon disposition nor do they indicate Signet’s intent or ability to dispose of the financial instrument. Assets and liabilities that are carried at fair value are required to be classified and disclosed in one of the following three categories:

Level 1—quoted market prices in active markets for identical assets and liabilities

Level 2—observable market based inputs or unobservable inputs that are corroborated by market data

Level 3—unobservable inputs that are not corroborated by market data

Signet determines fair value based upon quoted prices when available or through the use of alternative approaches, such as discounting the expected cash flows using market interest rates commensurate with the credit quality and duration of the investment. The methods Signet uses to determine fair value on an instrument-specific basis are detailed below.

	February 1, 2014						February 2, 2013
	Carrying amount			Significant other observable inputs (Level 2)			Carrying amount			Significant other observable inputs (Level 2)
(in millions)
Assets:
Foreign currency contracts	$	0.2		$	0.2		$	1.0		$	1.0
Commodity contracts		0.8			0.8			2.8			2.8
Liabilities:
Foreign currency contracts		(2.1	)		(2.1	)		—			—
Commodity contracts		(0.8	)		(0.8	)		(4.6	)		(4.6	)

The fair value of derivative financial instruments has been determined based on market value equivalents at the balance sheet date, taking into account the current interest rate environment, current foreign currency forward rates or current commodity forward rates. These are held as assets and liabilities within other receivables and other payables, and all contracts have a maturity of less than twelve months. The carrying amounts of cash and cash equivalents, accounts receivable, other receivables, accounts payable and accrued liabilities approximate fair value because of the short term maturity of these amounts.

20. Pension plans

The UK Plan, which ceased to admit new employees from April 2004, is a funded plan with assets held in a separate trustee administered fund, which is independently managed. February 1, 2014 and February 2, 2013 measurement dates were used in determining the UK Plan’s benefit obligation and fair value of plan assets.

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The following tables provide information concerning the UK Plan as of and for the fiscal years ended February 1, 2014 and February 2, 2013:

	Fiscal 2014			Fiscal 2013
(in millions)
Change in UK Plan assets:
Fair value at beginning of year	$	261.1		$	236.0
Actual return on UK Plan assets		13.1			22.1
Employer contributions		4.9			13.7
Members’ contributions		0.7			0.5
Benefits paid		(9.3	)		(10.9	)
Foreign currency changes		12.1			(0.3	)
Fair value at end of year	$	282.6		$	261.1

	Fiscal 2014			Fiscal 2013
(in millions)
Change in benefit obligation:
Benefit obligation at beginning of year	$	212.6		$	204.5
Service cost		2.4			3.6
Past service cost		0.9			1.1
Interest cost		9.3			9.5
Members’ contributions		0.7			0.5
Actuarial loss (gain)		(0.1	)		4.3
Benefits paid		(9.3	)		(10.9	)
Foreign currency changes		9.8			—
Benefit obligation at end of year	$	226.3		$	212.6
Funded status at end of year: UK Plan assets less benefit obligation	$	56.3		$	48.5

	February 1, 2014		February 2, 2013
(in millions)
Amounts recognized in the balance sheet consist of:
Non-current assets	$	56.3	$	48.5
Non-current liabilities		—		—
Net asset recognized	$	56.3	$	48.5

Items in accumulated OCI not yet recognized as income (expense) in the income statement:

	February 1, 2014			February 2, 2013			January 28, 2012
(in millions)
Net actuarial loss	$	(42.5	)	$	(44.4	)	$	(51.5	)
Net prior service credit		15.3			17.1			19.1

The estimated actuarial loss and prior service credit for the UK Plan that will be amortized from accumulated OCI into net periodic pension cost over the next fiscal year are $2.0 million and $(1.7) million, respectively.

The accumulated benefit obligation for the UK Plan was $210.3 million and $197.5 million at February 1, 2014 and February 2, 2013, respectively.

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The components of net periodic pension cost and other amounts recognized in OCI for the UK Plan are as follows:

	Fiscal 2014			Fiscal 2013			Fiscal 2012
(in millions)
Components of net periodic pension cost:
Service cost	$	(2.4	)	$	(3.6	)	$	(4.8	)
Interest cost		(9.3	)		(9.5	)		(10.7	)
Expected return on UK Plan assets		13.0			11.5			13.8
Amortization of unrecognized net prior service credit		1.5			1.6			1.0
Amortization of unrecognized actuarial loss		(2.3	)		(3.2	)		(2.6	)
Net periodic pension benefit (cost)	$	0.5		$	(3.2	)	$	(3.3	)
Other changes in assets and benefit obligations recognized in OCI		0.1			6.7			(1.7	)
Total recognized in net periodic pension benefit (cost) and OCI	$	0.6		$	3.5		$	(5.0	)

	February 1, 2014			February 2, 2013
Assumptions used to determine benefit obligations (at the end of the year):
Discount rate		4.40	%		4.50	%
Salary increases		3.00	%		3.20	%
Assumptions used to determine net periodic pension costs (at the start of the year):
Discount rate		4.50	%		4.70	%
Expected return on UK Plan assets		5.00	%		4.75	%
Salary increases		3.20	%		3.20	%

The discount rate is based upon published rates for high-quality fixed-income investments that produce expected cash flows that approximate the timing and amount of expected future benefit payments.

The expected return on the UK Plan assets assumption is based upon the historical return and future expected returns for each asset class, as well as the target asset allocation of the portfolio of UK Plan assets.

The UK Plan’s investment strategy is guided by an objective of achieving a return on the investments, which is consistent with the long-term return assumptions and funding policy, to ensure the UK Plan obligations are met. The investment policy is to carry a balance of funds to achieve these aims. These funds carry investments in UK and overseas equities, diversified growth funds, UK corporate bonds, UK Gilts and commercial property. The property investment is through a Pooled Pensions Property Fund that provides a diversified portfolio of property assets.

The target allocation for the UK Plan’s assets at February 1, 2014 was bonds 45%, diversified growth funds 35%, equities 15% and property 5%. This allocation is consistent with the long-term target allocation of investments underlying the UK Plan’s funding strategy.

The fair value of the assets in the UK Plan at February 1, 2014 and February 2, 2013 are required to be classified and disclosed in one of the following three categories:

Level 1—quoted market prices in active markets for identical assets and liabilities

Level 2—observable market based inputs or unobservable inputs that are corroborated by market data

Level 3—unobservable inputs that are not corroborated by market data

34

In Fiscal 2014, based upon further review of the underlying securities of the investments, management corrected the presentation for certain investments as of February 2, 2013 from Level 1 to Level 2 in the amount of $188.3 million. The value and classification of these assets was as follows:

	Fair value measurements at February 1, 2014								Fair value measurements at February 2, 2013
	Total		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant Unobservable inputs (Level 3)		Total		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
(in millions)
Asset category:
Diversified equity securities	$	41.0	$	19.1	$	21.9	$	—	$	73.2	$	34.9	$	38.3	$	—
Diversified growth funds		100.5		50.8		49.7		—		51.2		26.3		24.9		—
Fixed income – government bonds		64.2		—		64.2		—		63.4		—		63.4		—
Fixed income – corporate bonds		64.6		—		64.6		—		61.7		—		61.7		—
Property		11.6		—		—		11.6		10.4		—		—		10.4
Cash		0.7		0.7		—		—		1.2		1.2		—		—
Total	$	282.6	$	70.6	$	200.4	$	11.6	$	261.1	$	62.4	$	188.3	$	10.4

Investments in diversified equity securities, diversified growth funds, and fixed income securities are in pooled funds. Investments are valued based on unadjusted quoted prices for each fund in active markets, where possible and, therefore, classified in Level 1 of the fair value hierarchy. If unadjusted quoted prices for identical assets are unavailable, investments are valued by the administrators of the funds. The valuation is based on the value of the underlying assets owned by the fund, minus its liabilities, and then divided by the number of units outstanding. The unit price is based on underlying investments which are generally either traded in an active market or are valued based on observable inputs such as market interest rates and quoted prices for similar securities and, therefore, classified in Level 2 of the fair value hierarchy.

The investment in property is in pooled funds valued by the administrators of the fund. The valuation is based on the value of the underlying assets owned by the fund, minus its liabilities, and then divided by the number of units outstanding. The unit price is based on underlying investments which are independently valued on a monthly basis. The investment in the property fund is subject to certain restrictions on withdrawals that could delay the receipt of funds by up to 16 months.

The table below sets forth changes in the fair value of the Level 3 investment assets in Fiscal 2014 and 2013:

(in millions)
Balance at January 28, 2012	$	10.3
Actual return on assets		0.1
Balance at February 2, 2013	$	10.4
Actual return on assets		1.2
Balance at February 1, 2014	$	11.6

The UK Plan does not hold any investment in Signet shares or in property occupied by or other assets used by Signet.

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Signet contributed $4.9 million to the UK Plan in Fiscal 2014 and expects to contribute a minimum of $4.2 million to the UK Plan in Fiscal 2015. The level of contributions is in accordance with an agreed upon deficit recovery plan and based on the results of the actuarial valuation as of April 5, 2012.

The following benefit payments, which reflect expected future service, as appropriate, are estimated to be paid by the UK Plan:

(in millions)
Fiscal 2015	$	9.3
Fiscal 2016		10.3
Fiscal 2017		10.7
Fiscal 2018		10.3
Fiscal 2019		11.9
Fiscal 2020 to Fiscal 2024		62.2

In June 2004, Signet introduced a defined contribution plan which replaced the UK Plan for new UK employees. The contributions to this plan in Fiscal 2014 were $1.0 million (Fiscal 2013: $0.7 million; Fiscal 2012: $0.6 million).

In the US, Signet sponsors a defined contribution 401(k) retirement savings plan for all eligible employees who meet minimum age and service requirements. The assets of this plan are held in a separate trust and Signet matches 50% of up to 6% of employee elective salary deferrals, subject to statutory limitations. Effective April 1, 2011, Signet increased the matching element from 25% to 50% of up to 6% of employee elective salary deferrals. Signet’s contributions to this plan in Fiscal 2014 were $7.1 million (Fiscal 2013: $6.5 million; Fiscal 2012: $5.4 million). The US division has also established two unfunded, non-qualified deferred compensation plans, one of which permits certain management and highly compensated employees to elect annually to defer all or a portion of their compensation and earn interest on the deferred amounts (“DCP”) and the other of which is frozen as to new participants and new deferrals. Beginning in April 2011, the DCP provided for a matching contribution based on each participant’s annual compensation deferral. The plan also permits employer contributions on a discretionary basis. In connection with these plans, Signet has invested in trust-owned life insurance policies and money market funds. The cost recognized in connection with the DCP in Fiscal 2014 was $2.4 million (Fiscal 2013: $2.1 million; Fiscal 2012: $2.2 million).

The fair value of the assets in the two unfunded, non-qualified deferred compensation plans at February 1, 2014 and February 2, 2013 are required to be classified and disclosed. Although these plans are not required to be funded by the Company, the Company may elect to fund the plans. The value and classification of these assets are as follows:

	Fair value measurements at February 1, 2014						Fair value measurements at February 2, 2013
	Total		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Total		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)
(in millions)
Assets:
Corporate-owned life insurance plans	$	8.2	$	—	$	8.2	$	8.9	$	—	$	8.9
Money market funds		16.3		16.3		—		8.6		8.6		—
Total assets	$	24.5	$	16.3	$	8.2	$	17.5	$	8.6	$	8.9

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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 $9.3 million (Fiscal 2013: $21.6 million; Fiscal 2012: $10.6 million).

Treasury shares

Treasury shares represent the cost of shares that the Company purchased in the market under the applicable authorized 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 in treasury by the Company at February 1, 2014 was 6,954,596. In Fiscal 2014, the Company repurchased 1,557,673 shares under authorized repurchase programs, while reissuing 437,913 shares, net of taxes and forfeitures, to satisfy awards outstanding under existing share based compensation plans. In Fiscal 2013, the Company repurchased 6,425,296 shares under authorized repurchase programs, 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 authorized repurchase programs and 18,897 shares were forfeited under the Omnibus Incentive Plan.

Share repurchase

Signet may from time to time repurchase common shares under various share repurchase programs authorized by Signet’s Board. Repurchases may be made in the open market, through block trades or otherwise. The timing, manner, price and amount of any repurchases will be determined by the Company in its discretion, and will be subject to economic and market conditions, stock prices, applicable legal requirements and other factors. The repurchase programs are funded through Signet’s existing cash reserves and liquidity sources. Repurchased shares are being held as treasury shares and may be used by Signet for general corporate purposes. Share repurchase activity is as follows:

			Fiscal 2014						Fiscal 2013						Fiscal 2012
	Amount authorized		Shares repurchased		Amount repurchased		Average repurchase price per share		Shares repurchased		Amount repurchased		Average repurchase price per share		Shares repurchased		Amount repurchased		Average repurchase price per share
	(in millions)				(in millions)						(in millions)						(in millions)
2013 Program(1)	$	350.0		808,428	$	54.6	$	67.54		na		na		na		na		na		na
2011 Program(2)		350.0		749,245		50.1		66.92		6,425,296	$	287.2	$	44.70		256,241	$	12.7	$	49.57
Total				1,557,673	$	104.7	$	67.24		6,425,296	$	287.2	$	44.70		256,241	$	12.7	$	49.57

(1) On June 14, 2013, the Board the repurchase of up to $350 million of Signet’s common shares (the “2013 Program”). The 2013 Program may be suspended or discontinued at any time without notice. The 2013 Program had $295.4 million remaining as of February 1, 2014.

(2) In October 2011, the Board authorized the repurchase of up to $300 million of Signet’s common shares (the “2011 Program”), which authorization was subsequently increased to $350 million. The 2011 Program was completed as of May 4, 2013.

na Not applicable.

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.

37

22. Commitments and contingencies

Operating leases

Signet occupies certain properties and holds machinery and vehicles under operating leases; it does not have any capital leases.

Rental expense for operating leases is as follows:

	Fiscal 2014			Fiscal 2013			Fiscal 2012
(in millions)
Minimum rentals	$	323.7		$	316.0		$	311.7
Contingent rent		11.1			7.8			9.8
Sublease income		(0.9	)		(2.9	)		(5.1	)
Total	$	333.9		$	320.9		$	316.4

The future minimum operating lease payments for operating leases having initial or non-cancelable terms in excess of one year are as follows:

(in millions)
Fiscal 2015	$	311.1
Fiscal 2016		275.4
Fiscal 2017		245.8
Fiscal 2018		212.6
Fiscal 2019		181.8
Thereafter		937.7
Total	$	2,164.4

Signet has entered into certain sale and leaseback transactions of certain properties. Under these transactions it continues to occupy the space in the normal course of business. Gains on the transactions are deferred and recognized as a reduction of rent expense over the life of the operating lease.

Contingent property liabilities

Approximately 44 UK property leases had been assigned by Signet at February 1, 2014 (and remained unexpired and occupied by assignees at that date) and approximately 19 additional properties were sub-let at that date. Should the assignees or sub-tenants fail to fulfill any obligations in respect of those leases or any other leases which have at any other time been assigned or sub-let, Signet or one of its UK subsidiaries may be liable for those defaults. The number of such claims arising to date has been small, and the liability, which is charged to the income statement as it arises, has not been material.

Capital commitments

At February 1, 2014 Signet has committed to spend $42.3 million (February 2, 2013: $33.6 million) related to capital commitments. These commitments principally relate to the expansion and renovation of stores.

Legal proceedings

As previously reported, in March 2008, a group of private plaintiffs (the “Claimants”) filed a class action lawsuit for an unspecified amount against Sterling Jewelers Inc. (“Sterling”), a subsidiary of Signet, in the U.S. District Court for the Southern District of New York alleging that US store-level employment practices are discriminatory as to compensation and promotional activities with respect to gender. In June 2008, the District Court referred the matter to private arbitration where the Claimants sought to proceed on a class-wide basis.

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Discovery has been completed. The Claimants filed a motion for class certification and Sterling opposed the motion. A hearing on the class certification motion was held in late February 2014. The motion is now pending before the Arbitrator.

Also as previously reported, on September 23, 2008, the U.S. Equal Employment Opportunity Commission (“EEOC”) filed a lawsuit against Sterling in the U.S. District Court for the Western District of New York. The EEOC’s lawsuit alleges that Sterling engaged in intentional and disparate impact gender discrimination with respect to pay and promotions of female retail store employees from January 1, 2003 to the present. The EEOC asserts claims for unspecified monetary relief and non-monetary relief against the Company on behalf of a class of female employees subjected to these alleged practices. Non-expert fact discovery closed in mid-May 2013. In September 2013, Sterling made a motion for partial summary judgment on procedural grounds, which was referred to a Magistrate Judge. The Magistrate Judge heard oral arguments on the summary judgment motion in December 2013. On January 2, 2014, the Magistrate Judge issued his Report, Recommendation and Order, recommending that the Court grant Sterling’s motion for partial summary judgment and dismiss the EEOC’s claims in their entirety. The EEOC filed its objections to the Magistrate Judge’s ruling and Sterling filed its response thereto. The District Court Judge heard oral arguments on the EEOC’s objections to the Magistrate Judge’s ruling on March 7, 2014 and on March 10, 2014 entered an order dismissing the action with prejudice. The EEOC has until May 12, 2014 to appeal the District Court Judge’s dismissal of the action to United States Court of Appeals for the Second Circuit.

Sterling denies the allegations of both parties and has been defending these cases vigorously. At this point, no outcome or amount of loss is able to be estimated.

In the ordinary course of business, Signet may be subject, from time to time, to various other proceedings, lawsuits, disputes or claims incidental to its business, which the Company believe are not significant to Signet’s consolidated financial position, results of operations or cash flows.

23. Share-based compensation

Signet operates several share-based compensation plans which can be categorized as the “Omnibus Plan,” “Share Saving Plans,” and the “Executive Plans.”

Impact on results

Share-based compensation expense and the associated tax benefits are as follows:

	Fiscal 2014			Fiscal 2013			Fiscal 2012
(in millions)
Share-based compensation expense	$	14.4		$	15.7		$	17.0
Income tax benefit	$	(5.2	)	$	(5.4	)	$	(5.7	)

The Fiscal 2014, Fiscal 2013 and Fiscal 2012 expense includes $0.4 million, $1.9 million and $4.4 million, respectively, of share-based compensation incurred in connection with the Chief Executive Officer’s (“CEO”) employment agreement dated September 29, 2010, for amounts foregone from his former employment. Under this agreement, 289,554 shares valued at $12.5 million were granted based upon the mid-market closing price of Signet’s stock on January 18, 2011. Of the shares granted, 116,392 shares vested on January 19, 2011, 92,083 shares vested in Fiscal 2013, 61,127 shares vested in Fiscal 2014 and 19,952 shares are expected to vest in Fiscal 2015, based on the vesting schedule of his foregone awards.

39

Unrecognized compensation cost related to awards granted under share-based compensation plans is as follows:

	Unrecognized Compensation Cost
	Fiscal 2014		Fiscal 2013		Fiscal 2012
(in millions)
Omnibus Plan	$	14.4	$	14.6	$	16.3
Share Saving Plans		2.9		2.9		3.3
CEO Shares		—		0.4		2.3
Total	$	17.3	$	17.9	$	21.9
Weighted average period of amortization		1.8 years		1.7 years		1.6 years

As of April 2012, the Company opted to satisfy share option exercises and the vesting of restricted stock and restricted stock units (“RSUs”) under its plans with the issuance of treasury shares. Prior to April 2012, all share option exercises and award vestings were satisfied through the issuance of new shares.

Omnibus Plan

In Fiscal 2010, Signet adopted the Signet Jewelers Limited Omnibus Incentive Plan (the “Omnibus Plan”). Awards that may be granted under the Omnibus Plan include restricted stock, RSUs, stock options and stock appreciation rights. The Fiscal 2014, Fiscal 2013 and Fiscal 2012 Awards granted under the Omnibus Plan have two elements, time-based restricted stock and performance-based restricted stock units. The time-based restricted stock has a three year cliff vesting period, subject to continued employment and has the same voting rights and dividend rights as Common Shares (which are payable once the shares have vested). Performance-based restricted stock units granted in Fiscal 2012 and Fiscal 2013 vest based upon actual cumulative operating income achieved for the relevant three year performance period compared to cumulative targeted operating income metrics established in the underlying grant agreement. In Fiscal 2014, an additional performance measure was included for the performance-based restricted stock units for senior executives, to include a return on capital employed (“ROCE”) metric during the relevant three year performance period compared to target levels established in the underlying grant agreements. The relevant performance is measured over a three year vesting period from the start of the fiscal year in which the award is granted. The Omnibus Plan permits the grant of awards to employees for up to 7,000,000 Common Shares.

The significant assumptions utilized to estimate the weighted-average fair value of awards granted under the Omnibus Plan are as follows:

	Omnibus Plan
	Fiscal 2014			Fiscal 2013			Fiscal 2012
Share price(1)	$	67.39		$	47.15		$	44.33
Risk free interest rate(1)		0.3	%		0.4	%		1.4	%
Expected term(1)		2.8 years			2.9 years			2.9 years
Expected volatility(1)		41.7	%		44.2	%		45.1	%
Dividend yield(1)		1.1	%		1.2	%		0.7	%
Fair value(1)	$	66.10		$	46.12		$	43.52

(1) Weighted average.

The risk free interest rate is based on the US Treasury (for US-based award recipients) or UK Gilt (for UK-based award recipients) yield curve in effect at the grant date with remaining terms equal to the expected term of the awards. The expected term utilized is based on the contractual vesting period of the awards. The expected volatility is determined by calculating the historical volatility of Signet’s share price over the previous 10 years.

40

The Fiscal 2014 activity for awards granted under the Omnibus Plan is as follows:

	Omnibus  Plans(1)
	No. of shares			Weighted average grant date fair value		Weighted average remaining contractual life		Intrinsic value(2)
	millions							millions
Outstanding at February 2, 2013		1.2		$	40.86		1.1 years	$	73.1
Fiscal 2014 activity:
Granted		0.3		$	66.10
Vested		(0.4	)	$	33.62
Lapsed		(0.1	)	$	46.58
Outstanding at February 1, 2014		1.0		$	51.44		1.0 years	$	80.1

(1) Includes shares issued to the CEO, whose contract includes share based compensation for amounts foregone from his prior employment.

(2) Intrinsic value for outstanding restricted stock and RSUs is based on the fair market value of Signet’s common stock on the last business day of the fiscal year.

The following table summarizes additional information about awards granted under the Omnibus Plan:

	Fiscal 2014		Fiscal 2013		Fiscal 2012
(in millions)
Total intrinsic value of awards vested	$	25.3	$	28.5	$	0.5

Share Saving Plans

Signet has three share option savings plans (collectively “the Share Saving Plans”) available to employees as follows:

• Employee Share Savings Plan, for US employees

• Sharesave Plan, for UK employees

• Irish Sharesave Plan for Republic of Ireland employees

The Share Saving Plans are compensatory and compensation expense is recognized over the requisite service period. In any 10 year period not more than 10% of the issued Common Shares of the Company from time to time may, in aggregate, be issued or be issuable pursuant to options granted under the Share Saving Plans or any other employees share plans adopted by Signet.

The Employee Share Savings Plan is a savings plan intended to qualify under US Section 423 of the US Internal Revenue Code and allows employees to purchase Common Shares at a discount of approximately 15% to the closing price of the New York Stock Exchange on the date of grant. Options granted under the Employee Share Savings Plan vest after 24 months and are generally only exercisable between 24 and 27 months of the grant date.

The Sharesave and Irish Sharesave Plans allow eligible employees to purchase Common Shares at a discount of approximately 20% below a determined market price based on the London Stock Exchange. The market price is determined as the average middle market price for the three trading days prior to the invitation date, or the market price on the day immediately preceding the participation date, or other market price agreed in writing, whichever is the higher value. Options granted under the Sharesave Plan and the Irish Sharesave Plan vest after 36 months and are generally only exercisable between 36 and 42 months from commencement of the related savings contract.

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The significant assumptions utilized to estimate the weighted-average fair value of awards granted under the Share Saving Plans are as follows:

	Share Saving Plans
	Fiscal 2014			Fiscal 2013			Fiscal 2012
Share price(1)	$	72.65		$	49.89		$	40.09
Exercise price(1)	$	59.75		$	41.17		$	28.32
Risk free interest rate(1)		0.7	%		0.4	%		0.7	%
Expected term(1)		2.7 years			2.7 years			3.0 years
Expected volatility(1)		40.2	%		41.0	%		43.0	%
Dividend yield(1)		1.1	%		1.4	%		1.0	%
Fair value(1)	$	22.89		$	15.40		$	11.55

(1) Weighted average.

The risk free interest rate is based on the US Treasury (for US-based award recipients) or UK Gilt (for UK-based award recipients) yield curve in effect at the grant date with remaining terms equal to the expected term of the awards. The expected term utilized is based on the contractual vesting period of the awards, inclusive of any exercise period available to award recipients after vesting. The expected volatility is determined by calculating the historical volatility of Signet’s share price over the previous 10 years.

The Fiscal 2014 activity for awards granted under the Share Saving Plans is as follows:

	Share Saving Plans
	No. of shares			Weighted average exercise price		Weighted average remaining contractual life		Intrinsic value(1)
	millions							millions
Outstanding at February 2, 2013		0.3		$	32.48		1.9 years	$	9.8
Fiscal 2014 activity:
Granted		0.1		$	59.75
Exercised		(0.1	)	$	27.32
Lapsed		—		$	—
Outstanding at February 1, 2014		0.3		$	44.06		1.7 years	$	9.4
Exercisable at February 2, 2013		—		$	—		—	$	—
Exercisable at February 1, 2014		—		$	—		—	$	—

(1) Intrinsic value for outstanding awards is based on the fair market value of Signet’s common stock on the last business day of the fiscal year.

The following table summarizes additional information about awards granted under the Share Saving Plans:

	Fiscal 2014		Fiscal 2013		Fiscal 2012
(in millions)
Weighted average grant date fair value per share of awards granted	$	22.89	$	15.40	$	11.55
Total intrinsic value of options exercised	$	4.9	$	3.3	$	1.1
Cash received from share options exercised	$	2.9	$	2.7	$	3.2

Executive Plans

Signet operates three 2003 executive share plans (the “2003 Plans”), together referred to as the “Executive Plans.” Option awards under the Executive Plans are generally granted with an exercise price equal to the market

42

price of the Company’s shares at the date of grant. Options under the Executive Plans are subject to certain internal performance criteria and cannot be exercised unless Signet achieves an annual rate of compound growth in earnings per share above the retail price index. The performance criteria are measured over a three year period from the start of the fiscal year in which the award is granted. Effective from Fiscal 2008, grants awarded under the 2003 Plans, other than for employee directors, are no longer subject to the performance criteria. Signet’s Executive Plans, which are shareholder approved, permit the grant of share options to employees for up to 10% of the issued Common Shares over any 10 year period, including any other employees share plans adopted by Signet or a maximum of 5% over 10 years including discretionary option plans. A maximum of 8,568,841 shares may be issued pursuant to options granted to US and UK participants in the Executive Plans. During Fiscal 2014, the plan periods for the Executive Plans expired. As a result, no additional awards may be granted under the Executive Plans as of February 1, 2014.

The Fiscal 2014 activity for awards granted under the Executive Plans is as follows:

	Executive Plans
	No. of shares			Weighted average exercise price		Weighted average remaining contractual life		Intrinsic value(1)
	millions							millions
Outstanding at February 2, 2013		0.3		$	39.07		3.4 years	$	6.5
Fiscal 2014 activity:
Granted		—		$	—
Exercised		(0.2	)	$	39.28
Lapsed		—		$	—
Outstanding at February 1, 2014		0.1		$	39.11		3.5 years	$	4.1
Exercisable at February 2, 2013		0.3		$	39.07			$	6.5
Exercisable at February 1, 2014		0.1		$	39.11			$	4.1

(1) Intrinsic value for outstanding awards is based on the fair market value of Signet’s common stock on the last business day of the fiscal year.

The following table summarizes additional information about awards granted under the Executive Plans:

	Fiscal 2014		Fiscal 2013		Fiscal 2012
(in millions)
Total intrinsic value of options exercised	$	4.8	$	9.0	$	5.2
Cash received from share options exercised	$	6.3	$	18.9	$	7.4

24. Related party transactions

There are no material related party transactions.

25. Subsequent Event

On February 19, 2014, Signet entered into a definitive agreement with Zale Corporation (“Zale”) to acquire all of Zale’s issued and outstanding common stock for $21.00 per share in cash, or approximately $1.4 billion including net debt. The proposed acquisition reflects our strategy to diversify our businesses and extend our international footprint. The acquisition is expected to be financed through the securitization of a significant portion of Signet’s US accounts receivable portfolio, bank debt and other debt financing. Signet has secured a commitment for bridge financing and a new underwritten term loan facility in connection with the transaction. Completion of the transaction is subject to customary closing conditions, including approval by Zale stockholders and regulatory approval.

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26. Condensed Consolidating Financial Information

The accompanying condensed consolidating financial information has been prepared and presented pursuant to SEC Regulation S-X, Rule 3-10, “Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered.” We and certain of our subsidiaries will guarantee the obligations under certain debt securities that may be issued by Signet UK Finance plc. The following presents the condensed consolidating financial information for: (i) the indirect Parent Company (Signet Jewelers Limited); (ii) the Issuer of the guaranteed obligations (Signet UK Finance plc); (iii) the Guarantor subsidiaries, on a combined basis; (iv) the Non-Guarantor subsidiaries, on a combined basis; (v) Consolidating eliminations; and (vi) Signet Jewelers Limited and Subsidiaries on a consolidated basis. Each Guarantor subsidiary is 100% owned by the Parent Company at the date of each balance sheet presented. The Guarantor subsidiaries, along with Signet Jewelers Limited, will fully and unconditionally guarantee the obligations of Signet UK Finance plc under any such debt securities. Each entity in the consolidating financial information follows the same accounting policies as described in the consolidated financial statements.

The accompanying consdensed consolidating finanical information has been presented on the equity method of accounting for all periods presented. Under this method, investments in subsidiaries are recorded at cost and adjusted for the subsidiaries’ cumulative results of operations, capital contributions and distributions, and other changes in equity. Elimination entries include consolidating and eliminating entries for investments in subsidiaries, and intercompany activity and balances.

44

Supplemental Condensed Consolidated Income Statement

For the 52 week period ended February 1, 2014

	Signet Jewelers Limited			Signet UK Finance plc		Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
(in millions)
Sales	$	—		$	—	$	4,162.9		$	46.3		$	—		$	4,209.2
Cost of sales		—			—		(2,621.2	)		(7.5	)		—			(2,628.7	)
Gross margin		—			—		1,541.7			38.8			—			1,580.5
Selling, general and administrative expenses		(2.9	)		—		(1,193.1	)		(0.7	)		—			(1,196.7	)
Other operating income, net		—			—		183.8			2.9			—			186.7
Operating (loss) income		(2.9	)		—		532.4			41.0			—			570.5
Intercompany interest (expense) income		—			—		(34.5	)		34.5			—			—
Interest expense, net		—			—		(3.9	)		(0.1	)		—			(4.0	)
(Loss) income before income taxes		(2.9	)		—		494.0			75.4			—			566.5
Income taxes		—			—		(196.8	)		(1.7	)		—			(198.5	)
Equity in income of subsidiaries		370.9			—		344.2			301.3			(1,016.4	)		—
Net income	$	368.0		$	—	$	641.4		$	375.0		$	(1,016.4	)	$	368.0

45

Supplemental Condensed Consolidated Income Statement

For the 53 week period ended February 2, 2013

	Signet Jewelers Limited			Signet UK Finance plc		Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
(in millions)
Sales	$	—		$	—	$	3,948.5		$	34.9		$	—		$	3,983.4
Cost of sales		—			—		(2,443.4	)		(2.6	)		—			(2,446.0	)
Gross margin		—			—		1,505.1			32.3			—			1,537.4
Selling, general and administrative expenses		(3.5	)		—		(1,135.6	)		0.8			—			(1,138.3	)
Other operating income, net		—			—		161.7			(0.3	)		—			161.4
Operating (loss) income		(3.5	)		—		531.2			32.8			—			560.5
Intercompany interest (expense) income		—			—		(41.1	)		41.1			—			—
Interest expense, net		—			—		(3.7	)		0.1			—			(3.6	)
(Loss) income before income taxes		(3.5	)		—		486.4			74.0			—			556.9
Income taxes		—			—		(195.8	)		(1.2	)		—			(197.0	)
Equity in income of subsidiaries		363.4			—		333.9			295.1			(992.4	)		—
Net income	$	359.9		$	—	$	624.5		$	367.9		$	(992.4	)	$	359.9

46

Supplemental Condensed Consolidated Income Statement

For the 52 week period ended January 28, 2012

	Signet Jewelers Limited			Signet UK Finance plc		Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
(in millions)
Sales	$	—		$	—	$	3,719.6		$	29.6		$	—		$	3,749.2
Cost of sales		—			—		(2,311.4	)		(0.2	)		—			(2,311.6	)
Gross margin		—			—		1,408.2			29.4			—			1,437.6
Selling, general and administrative expenses		(4.3	)		—		(1,053.2	)		0.8			—			(1,056.7	)
Other operating income, net		0.1			—		126.8			(0.4	)		—			126.5
Operating (loss) income		(4.2	)		—		481.8			29.8			—			507.4
Intercompany interest (expense) income		—			—		(43.0	)		43.0			—			—
Interest expense, net		—			—		(5.2	)		(0.1	)		—			(5.3	)
(Loss) income before income taxes		(4.2	)		—		433.6			72.7			—			502.1
Income taxes		—			—		(173.8	)		(3.9	)		—			(177.7	)
Equity in income of subsidiaries		328.6			—		308.8			269.4			(906.8	)		—
Net income	$	324.4		$	—	$	568.6		$	338.2		$	(906.8	)	$	324.4

47

Supplemental Condensed Consolidated Statement of Comprehensive Income

For the 52 week period ended February 1, 2014

	Signet Jewelers Limited		Signet UK Finance plc		Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
(in millions)
Net income	$	368.0	$	—	$	641.4		$	375.0		$	(1016.4	)	$	368.0
Other comprehensive income (loss):
Foreign currency translation adjustments		—		—		13.9			(2.7	)		1.2			12.4
Cash flow hedges:
Unrealized loss		—		—		(22.0	)		—			—			(22.0	)
Reclassification adjustment for losses to net income		—		—		6.7			—			—			6.7
Pension plan:
Actuarial gain		—		—		0.2			—			—			0.2
Reclassification adjustment to net income for amortization of actuarial loss		—		—		1.7			—			—			1.7
Prior service benefit		—		—		(0.7	)		—			—			(0.7	)
Reclassification adjustment to net income for amortization of prior service credits		—		—		(1.1	)		—			—			(1.1	)
Total other comprehensive (loss) income	$	—	$	—	$	(1.3	)	$	(2.7	)	$	1.2		$	(2.8	)
Total comprehensive income	$	368.0	$	—	$	640.1		$	372.3		$	(1,015.2	)	$	365.2

48

Supplemental Condensed Consolidated Statement of Comprehensive Income

For the 53 week period ended February 2, 2013

	Signet Jewelers Limited		Signet UK Finance plc		Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Eliminations			Consolidated
(in millions)
Net income	$	359.9	$	—	$	624.5		$	367.9	$	(992.4	)	$	359.9
Other comprehensive income (loss):
Foreign currency translation adjustments		—		—		(0.6	)		0.1		—			(0.5	)
Cash flow hedges:
Unrealized loss		—		—		(6.7	)		—		—			(6.7	)
Reclassification adjustment for gains to net income		—		—		(14.4	)		—		—			(14.4	)
Pension plan:
Actuarial gain		—		—		4.7			—		—			4.7
Reclassification adjustment to net income for amortization of actuarial loss		—		—		2.4			—		—			2.4
Prior service benefit		—		—		(0.8	)		—		—			(0.8	)
Reclassification adjustment to net income for amortization of prior service credits		—		—		(1.2	)		—		—			(1.2	)
Total other comprehensive (loss) income	$	—	$	—	$	(16.6	)	$	0.1	$	—		$	(16.5	)
Total comprehensive income	$	359.9	$	—	$	607.9		$	368.0	$	(992.4	)	$	343.4

49

Supplemental Condensed Consolidated Statement of Comprehensive Income

For the 52 week period ended January 28, 2012

	Signet Jewelers Limited		Signet UK Finance plc		Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Eliminations			Consolidated
(in millions)
Net income	$	324.4	$	—	$	568.6		$	338.2	$	(906.8	)	$	324.4
Other comprehensive income:
Foreign currency translation adjustments		—		—		(4.4	)		0.6		(0.1	)		(3.9	)
Cash flow hedges:
Unrealized gain		—		—		32.2			—		—			32.2
Reclassification adjustment for gains to net income		—		—		(16.0	)		—		—			(16.0	)
Pension plan:
Actuarial loss		—		—		(7.3	)		—		—			(7.3	)
Reclassification adjustment to net income for amortization of actuarial loss		—		—		1.8			—		—			1.8
Prior service costs		—		—		5.5			—		—			5.5
Reclassification adjustment to net income for amortization of prior service credits		—		—		(0.7	)		—		—			(0.7	)
Total other comprehensive income	$	—	$	—	$	11.1		$	0.6	$	(0.1	)	$	11.6
Total comprehensive income	$	324.4	$	—	$	579.7		$	338.8	$	(906.9	)	$	336.0

50

Supplemental Condensed Consolidated Balance Sheet

February 1, 2014

	Signet Jewelers Limited		Signet UK Finance plc		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			Consolidated
(in millions)
Assets
Current assets:
Cash and cash equivalents	$	1.4	$	—	$	237.0	$	9.2	$	—		$	247.6
Accounts receivable, net		—		—		1,361.3		12.7		—			1,374.0
Intercompany receivables, net		47.7		—		—		238.0		(285.7	)		—
Other receivables		—		—		51.1		0.4		—			51.5
Other current assets		—		—		86.5		0.5		—			87.0
Deferred tax assets		—		—		2.8		0.2		—			3.0
Income taxes		—		—		6.0		0.5		—			6.5
Inventories		—		—		1,434.5		53.5		—			1,488.0
Total current assets		49.1		—		3,179.2		315.0		(285.7	)		3,257.6
Non-current assets:
Property, plant and equipment, net		—		—		481.5		6.1		—			487.6
Investment in subsidiaries		2,526.3		—		1,452.8		1,143.2		(5,122.3	)		—
Intercompany receivables, net		—		—		—		1,098.0		(1,098.0	)		—
Other assets		—		—		110.4		3.6		—			114.0
Deferred tax assets		—		—		113.6		0.1		—			113.7
Retirement benefit asset		—		—		56.3		—		—			56.3
Total assets	$	2,575.4	$	—	$	5,393.8	$	2,566.0	$	(6,506.0	)	$	4,029.2
Liabilities and Shareholders’ equity
Current liabilities:
Loans and overdrafts	$	—	$	—	$	19.3	$	—	$	—		$	19.3
Accounts payable		—		—		160.5		2.4		—			162.9
Intercompany payables, net		—		—		285.7		—		(285.7	)		—
Accrued expenses and other current liabilities		12.3		—		313.1		3.1		—			328.5
Deferred revenue		—		—		173.0		—		—			173.0
Deferred tax liabilities		—		—		113.1		—		—			113.1
Income taxes		—		—		101.3		2.6		—			103.9
Total current liabilities		12.3		—		1,166.0		8.1		(285.7	)		900.7
Non-current liabilities:
Intercompany payables, net		—		—		1,098.0		—		(1,098.0	)		—
Other liabilities		—		—		118.5		3.2		—			121.7
Deferred revenue		—		—		443.7		—		—			443.7
Total liabilities		12.3		—		2,826.2		11.3		(1,383.7	)		1,466.1
Total shareholders’ equity		2,563.1		—		2,567.6		2,554.7		(5,122.3	)		2,563.1
Total liabilities and shareholders’ equity	$	2,575.4	$	—	$	5,393.8	$	2,566.0	$	(6,506.0	)	$	4,029.2

51

Supplemental Condensed Consolidated Balance Sheet

February 2, 2013

	Signet Jewelers Limited		Signet UK Finance plc		Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated
(in millions)
Assets
Current assets:
Cash and cash equivalents	$	13.4	$	—	$	271.3	$	16.3		$	—		$	301.0
Accounts receivable, net		—		—		1,198.8		6.5			—			1,205.3
Intercompany receivables, net		37.3		—		—		715.8			(753.1	)		—
Other receivables		—		—		41.8		0.3			—			42.1
Other current assets		0.2		—		85.0		0.4			—			85.6
Deferred tax assets		—		—		1.1		0.5			—			1.6
Income taxes		—		—		3.5		—			—			3.5
Inventories		—		—		1,360.9		36.1			—			1,397.0
Total current assets		50.9		—		2,962.4		775.9			(753.1	)		3,036.1
Non-current assets:
Property, plant and equipment, net		—		—		429.7		0.7			—			430.4
Investment in subsidiaries		2,288.9		—		1,335.3		1,039.3			(4,663.5	)		—
Intercompany receivables, net		—		—		—		600.0			(600.0	)		—
Other assets		—		—		99.9		—			—			99.9
Deferred tax assets		—		—		104.1		—			—			104.1
Retirement benefit asset		—		—		48.5		—			—			48.5
Total assets	$	2,339.8	$	—	$	4,979.9	$	2,415.9		$	(6,016.6	)	$	3,719.0
Liabilities and Shareholders’ equity
Current liabilities:
Loans and overdrafts	$	—	$	—	$	—	$	—		$	—		$	—
Accounts payable		—		—		160.0		(4.1	)		—			155.9
Intercompany payables, net		—		—		753.1		—			(753.1	)		—
Accrued expenses and other current liabilities		9.9		—		312.3		4.2			—			326.4
Deferred revenue		—		—		159.7		—			—			159.7
Deferred tax liabilities		—		—		129.6		—			—			129.6
Income taxes		—		—		95.9		4.4			—			100.3
Total current liabilities		9.9		—		1,610.6		4.5			(753.1	)		871.9
Non-current liabilities:
Intercompany payables, net		—		—		600.0		—			(600.0	)		—
Other liabilities		—		—		106.1		5.2			—			111.3
Deferred revenue		—		—		405.9		—			—			405.9
Total liabilities		9.9		—		2,722.6		9.7			(1,353.1	)		1,389.1
Total shareholders’ equity		2,329.9		—		2,257.3		2,406.2			(4,663.5	)		2,329.9
Total liabilities and shareholders’ equity		2,339.8	$	—	$	4,979.9	$	2,415.9		$	(6,016.6	)	$	3,719.0

52

Supplemental Condensed Consolidated Statement of Cash Flows

For the 52 week period ended February 1, 2014

	Signet Jewelers Limited			Signet UK Finance plc		Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
(in millions)
Cash flows from operating activities
Other cash provided by operating activities	$	137.3		$	—	$	421.3		$	286.9		$	(610.0	)	$	235.5
Net cash provided by operating activities		137.3			—		421.3			286.9			(610.0	)		235.5
Investing activities
Purchase of property, plant and equipment		—			—		(152.6	)		(0.1	)		—			(152.7	)
Investment in subsidiaries		(0.3	)		—		(11.0	)		(11.0	)		22.3			—
Acquisition of Ultra Stores, Inc., net of cash received		—			—		1.4			—			—			1.4
Acquisition of diamond polishing factory		—			—		—			(9.1	)		—			(9.1	)
Net cash used in investing activities		(0.3	)		—		(162.2	)		(20.2	)		22.3			(160.4	)
Financing activities
Dividends paid		(46.0	)		—		—			—			—			(46.0	)
Intercompany dividends paid		—			—		(104.4	)		(35.6	)		140.0			—
Proceeds from issuance of common shares		9.3			—		—			22.3			(22.3	)		9.3
Excess tax benefit from exercise of share awards		—			—		6.5			—			—			6.5
Repurchase of common shares		(104.7	)		—		—			—			—			(104.7	)
Net settlement of equity based awards		(9.2	)		—		—			—			—			(9.2	)
Proceeds from short-term borrowings		—			—		19.3			—			—			19.3
Intercompany activity, net		1.6			—		(214.6	)		(257.0	)		470.0			—
Net cash used in financing activities		(149.0	)		—		(293.2	)		(270.3	)		587.7			(124.8	)
Cash and cash equivalents at beginning of period		13.4			—		271.3			16.3			—			301.0
Decrease in cash and cash equivalents		(12.0	)		—		(34.1	)		(3.6	)		—			(49.7	)
Effect of exchange rate changes on cash and cash equivalents		—			—		(0.2	)		(3.5	)		—			(3.7	)
Cash and cash equivalents at end of period	$	1.4		$	—	$	237.0		$	9.2		$	—		$	247.6

53

Supplemental Condensed Consolidated Statement of Cash Flows

For the 53 week period ended February 2, 2013

	Signet Jewelers Limited			Signet UK Finance plc		Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
(in millions)
Cash flows from operating activities
Other cash provided by operating activities	$	305.7		$	—	$	512.5		$	280.5		$	(786.0	)	$	359.9
Net cash provided by operating activities		305.7			—		512.5			280.5			(786.0	)	$	312.7
Investing activities
Purchase of property, plant and equipment		—			—		(134.0	)		(0.2	)		—			(134.2	)
Acquisition of Ultra Stores, Inc., net of cash received		—			—		(56.7	)		—			—			(56.7	)
Net cash used in investing activities		—			—		(190.7	)		(0.2	)		—			(190.9	)
Financing activities
Dividends paid		(38.4	)		—		—			—			—			(38.4	)
Intercompany dividends paid		—			—		(520.1	)		(265.9	)		786.0			—
Proceeds from issuance of common shares		21.6			—		—			—			—			21.6
Excess tax benefit from exercise of share awards		—			—		7.4			—			—			7.4
Repurchase of common shares		(287.2	)		—		—			—			—			(287.2	)
Net settlement of equity based awards		(11.5	)		—		—			—			—			(11.5	)
Intercompany activity, net		17.1			—		(9.9	)		(7.2	)		—			—
Net cash used in financing activities		(298.4	)		—		(522.6	)		(273.1	)		786.0			(308.1	)
Cash and cash equivalents at beginning of period		6.1			—		471.6			9.1			—			486.8
Increase (decrease) in cash and cash equivalents		7.3			—		(200.8	)		7.2			—			(186.3	)
Effect of exchange rate changes on cash and cash equivalents		—			—		0.5			—			—			0.5
Cash and cash equivalents at end of period	$	13.4		$	—	$	271.3		$	16.3		$	—		$	301.0

54

Supplemental Condensed Consolidated Statement of Cash Flows

For the 52 week period ended January 28, 2012

	Signet Jewelers Limited			Signet UK Finance plc		Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
(in millions)
Cash flows from operating activities
Other cash provided by operating activities	$	45.7		$	—	$	665.2		$	306.5		$	(692.2	)	$	325.2
Net cash provided by operating activities		45.7			—		665.2			306.5			(692.2	)		325.2
Investing activities
Purchase of property, plant and equipment		—			—		(97.8	)		—			—			(97.8	)
Investment in subsidiaries		—			—		(4.2	)		(2.4	)		6.6			—
Net cash used in investing activities		—			—		(102.0	)		(2.4	)		6.6			(97.8	)
Financing activities
Dividends paid		(8.7	)		—		—			—			—			(8.7	)
Intercompany dividends paid		—			—		(253.3	)		(438.9	)		692.2			—
Proceeds from issuance of common shares		10.6			—		—			2.4			(2.4	)		10.6
Excess tax benefit from exercise of share awards		—			—		3.9			—			—			3.9
Repurchase of common shares		(12.7	)		—		—			—			—			(12.7	)
Credit facility fees paid		—			—		(2.1	)		—			—			(2.1	)
Repayment of short-term borrowings		—			—		(31.0	)		—			—			(31.0	)
Intercompany activity, net		(38.6	)		—		(80.6	)		123.4			(4.2	)		—
Net cash used in financing activities		(49.4	)		—		(363.1	)		(313.1	)		685.6			(40.0	)
Cash and cash equivalents at beginning of period		9.8			—		275.0			17.3			—			302.1
(Decrease) increase in cash and cash equivalents		(3.7	)		—		200.1			(9.0	)		—			187.4
Effect of exchange rate changes on cash and cash equivalents		—			—		(3.5	)		0.8			—			(2.7	)
Cash and cash equivalents at end of period	$	6.1		$	—	$	471.6		$	9.1		$	—		$	486.8

55

QUARTERLY FINANCIAL INFORMATION—UNAUDITED

The sum of the quarterly earnings per share data may not equal the full year amount as the computations of the weighted average shares outstanding for each quarter and the full year are calculated independently.

The following information incorporates the change in accounting for extended service plans that is described in Item 6 and Item 8.

	Fiscal 2014 Quarters ended
	May 4, 2013		August 3, 2013		November 2, 2013		February 1, 2014
(in millions, except per share amounts)
Sales	$	993.6	$	880.2	$	771.4	$	1,564.0
Gross margin		382.8		309.7		239.2		648.8
Net income		91.8		67.4		33.6		175.2
Earnings per share – basic	$	1.14	$	0.84	$	0.42	$	2.20
– diluted	$	1.13	$	0.84	$	0.42	$	2.18

	Fiscal 2013 Quarters ended
	April 28, 2012		July 28, 2012		October 27, 2012		February 2, 2013
(in millions, except per share amounts)
Sales	$	900.0	$	853.9	$	716.2	$	1,513.3
Gross margin		353.7		311.2		235.4		637.1
Net income		82.5		70.7		34.9		171.8
Earnings per share – basic	$	0.96	$	0.86	$	0.43	$	2.13
– diluted	$	0.96	$	0.85	$	0.43	$	2.12

56

EX-99.2

Exhibit 99.2

MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rule 13a-15(f) promulgated under the Securities Exchange Act of 1934, as amended. Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). Based on our evaluation, our management concluded that our internal control over financial reporting was effective as of July 31, 2013. The effectiveness of our internal control over financial reporting was audited by Ernst & Young LLP, an independent registered public accounting firm, as stated in their report on page F-3.

/s/ THEO KILLION	/s/ THOMAS A. HAUBENSTRICKER
Theo Killion	Thomas A. Haubenstricker
Chief Executive Officer	Chief Financial Officer
September 27, 2013	September 27, 2013

1

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors and Stockholders of Zale Corporation:

We have audited the accompanying consolidated balance sheets of Zale Corporation and subsidiaries as of July 31, 2013 and 2012, and the related consolidated statements of operations, comprehensive income (loss), stockholders’ investment, and cash flows for each of the three years in the period ended July 31, 2013. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of Zale Corporation and subsidiaries at July 31, 2013 and 2012, and the consolidated results of their operations and their cash flows for each of the three years in the period ended July 31, 2013, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), Zale Corporation’s internal control over financial reporting as of July 31, 2013, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (1992 Framework) and our report dated September 27, 2013 expressed an unqualified opinion thereon.

/s/ Ernst & Young LLP

Dallas, Texas

September 27, 2013

2

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors and Stockholders of Zale Corporation:

We have audited Zale Corporation’s internal control over financial reporting as of July 31, 2013, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (1992 Framework) (the COSO criteria). Zale Corporation’s management is responsible for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, Zale Corporation maintained, in all material respects, effective internal control over financial reporting as of July 31, 2013, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of Zale Corporation and subsidiaries as of July 31, 2013 and 2012, and the related consolidated statements of operations, comprehensive income (loss), stockholders’ investment, and cash flows for each of the three years in the period ended July 31, 2013 of Zale Corporation and subsidiaries and our report dated September 27, 2013 expressed an unqualified opinion thereon.

/s/ Ernst & Young LLP

Dallas, Texas

September 27, 2013

3

ZALE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

	Year Ended July 31,
	2013			2012			2011
Revenues	$	1,888,016		$	1,866,878		$	1,742,563
Cost of sales		903,602			905,613			862,468
Gross margin		984,414			961,265			880,095
Selling, general and administrative		916,274			902,287			859,588
Depreciation and amortization		33,770			37,887			41,326
Other (gains) charges		(748	)		1,973			7,047
Operating earnings (loss)		35,118			19,118			(27,866	)
Interest expense		23,182			44,649			82,619
Earnings (loss) before income taxes		11,936			(25,531	)		(110,485	)
Income tax expense		1,924			1,365			1,557
Earnings (loss) from continuing operations		10,012			(26,896	)		(112,042	)
Loss from discontinued operations, net of taxes		—			(414	)		(264	)
Net earnings (loss)	$	10,012		$	(27,310	)	$	(112,306	)
Basic net earnings (loss) per common share:
Earnings (loss) from continuing operations	$	0.31		$	(0.84	)	$	(3.49	)
Loss from discontinued operations		—			(0.01	)		(0.01	)
Net earnings (loss) per share	$	0.31		$	(0.85	)	$	(3.50	)
Diluted net earnings (loss) per common share:
Earnings (loss) from continuing operations	$	0.24		$	(0.84	)	$	(3.49	)
Loss from discontinued operations		—			(0.01	)		(0.01	)
Net earnings (loss) per share	$	0.24		$	(0.85	)	$	(3.50	)
Weighted-average number of common shares outstanding:
Basic		32,429			32,196			32,129
Diluted		40,958			32,196			32,129

See notes to consolidated financial statements.

4

ZALE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In thousands)

	Year Ended July 31,
	2013			2012			2011
Net earnings (loss)	$	10,012		$	(27,310	)	$	(112,306	)
Foreign currency translation adjustment		(5,685	)		(9,668	)		14,190
Reclassification of gain on sale of securities to earnings		(703	)		(242	)		(169	)
Unrealized gain on securities, net		34			628			924
Comprehensive income (loss)	$	3,658		$	(36,592	)	$	(97,361	)

See notes to consolidated financial statements.

5

ZALE CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except per share amounts)

	July 31,
	2013			2012
ASSETS
Current assets:
Cash and cash equivalents	$	17,060		$	24,603
Merchandise inventories		767,540			741,788
Other current assets		52,620			46,690
Total current assets		837,220			813,081
Property and equipment, net		108,875			122,124
Goodwill		98,372			100,544
Other assets		35,678			47,790
Deferred tax asset		107,110			96,929
Total assets	$	1,187,255		$	1,180,468
LIABILITIES AND STOCKHOLDERS’ INVESTMENT
Current liabilities:
Accounts payable and accrued liabilities	$	220,558		$	205,082
Deferred revenue		82,110			85,714
Deferred tax liability		107,016			96,662
Total current liabilities		409,684			387,458
Long-term debt		410,050			452,908
Deferred revenue – long-term		109,135			122,802
Other liabilities		73,057			38,364
Commitments and contingencies
Stockholders’ investment:
Common stock, par value $0.01, 150,000 shares authorized; 54,732 shares issued; 32,639 and 32,220 shares outstanding at July 31, 2013 and 2012, respectively		488			488
Additional paid-in capital		155,625			162,711
Accumulated other comprehensive income		47,015			53,369
Accumulated earnings		435,140			425,128
		638,268			641,696
Treasury stock, at cost, 22,093 and 22,512 shares at July 31, 2013 and 2012, respectively		(452,939	)		(462,760	)
Total stockholders’ investment		185,329			178,936
Total liabilities and stockholders’ investment	$	1,187,255		$	1,180,468

See notes to consolidated financial statements.

6

ZALE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

	Year Ended July 31,
	2013			2012			2011
Cash Flows From Operating Activities:
Net earnings (loss)	$	10,012		$	(27,310	)	$	(112,306	)
Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities:
Non-cash interest		2,870			3,603			34,580
Depreciation and amortization		33,770			37,887			41,326
Deferred taxes		1,165			1,544			5,280
Loss on disposition of property and equipment		1,308			1,793			1,431
Impairment of property and equipment		1,119			1,751			6,762
Stock-based compensation		3,285			2,728			2,150
Loss from discontinued operations		—			414			264
Changes in assets and liabilities:
Merchandise inventories		(29,575	)		(27,516	)		(8,071	)
Other current assets		(7,447	)		5,877			(5,772	)
Other assets		(140	)		142			(1,982	)
Accounts payable and accrued liabilities		15,944			(11,037	)		(19,577	)
Deferred revenue		(16,433	)		(22,064	)		10,418
Other liabilities		34,526			(4,673	)		(1,449	)
Net cash provided by (used in) operating activities		50,404			(36,861	)		(46,946	)
Cash Flows From Investing Activities:
Payments for property and equipment		(23,029	)		(19,775	)		(15,315	)
Purchase of available-for-sale investments		(4,181	)		(6,833	)		(9,388	)
Proceeds from sales of available-for-sale investments		12,892			8,517			6,140
Net cash used in investing activities		(14,318	)		(18,091	)		(18,563	)
Cash Flows From Financing Activities:
Borrowings under revolving credit agreement		5,071,300			4,891,400			3,604,800
Payments on revolving credit agreement		(5,113,900	)		(4,776,600	)		(3,514,800	)
Payments on senior secured term loan		—			(60,454	)		(11,250	)
Debt issuance costs		—			(7,990	)		—
Proceeds from exercise of stock options		147			34			67
Payments on capital lease obligations		(1,016	)		(527	)		—
Net cash (used in) provided by financing activities		(43,469	)		45,863			78,817
Cash Flows Used in Discontinued Operations:
Net cash used in operating activities of discontinued operations		—			(893	)		(5,391	)
Effect of exchange rate changes on cash		(160	)		(540	)		973
Net change in cash and cash equivalents		(7,543	)		(10,522	)		8,890
Cash and cash equivalents at beginning of period		24,603			35,125			26,235
Cash and cash equivalents at end of period	$	17,060		$	24,603		$	35,125

See notes to consolidated financial statements.

7

ZALE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ INVESTMENT

(In thousands)

								Accumulated
					Additional			Other
	Common Stock				Paid-In			Comprehensive			Accumulated			Treasury
	Shares		Amount		Capital			Income			Earnings			Stock			Total
Balances at July 31, 2010		32,107	$	488	$	160,645		$	47,706		$	564,744		$	(465,563	)	$	308,020
Comprehensive loss		—		—		—			14,945			(112,306	)		—			(97,361	)
Net settlement of share-based awards		52		—		(1,220	)		—			—			1,238			18
Stock-based compensation		—		—		2,150			—			—			—			2,150
Balances at July 31, 2011		32,159		488		161,575			62,651			452,438			(464,325	)		212,827
Comprehensive loss		—		—		—			(9,282	)		(27,310	)		—			(36,592	)
Net settlement of share-based awards		61		—		(1,592	)		—			—			1,565			(27	)
Stock-based compensation		—		—		2,728			—			—			—			2,728
Balances at July 31, 2012		32,220		488		162,711			53,369			425,128			(462,760	)		178,936
Comprehensive income		—		—		—			(6,354	)		10,012			—			3,658
Net settlement of share-based awards		419		—		(10,371	)		—			—			9,821			(550	)
Stock-based compensation		—		—		3,285			—			—			—			3,285
Balances at July 31, 2013		32,639	$	488	$	155,625		$	47,015		$	435,140		$	(452,939	)	$	185,329

See notes to consolidated financial statements.

8

ZALE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation. References to the “Company,” “we,” “us,” and “our” in this Form 10-K are references to Zale Corporation and its subsidiaries. We are, through our wholly owned subsidiaries, a leading specialty retailer of fine jewelry in North America. At July 31, 2013, we operated 1,064 specialty retail jewelry stores and 630 kiosks located mainly in shopping malls throughout the United States, Canada and Puerto Rico.

We report our operations under three segments: Fine Jewelry, Kiosk Jewelry and All Other. Fine Jewelry is comprised of our three core national brands, Zales Jewelers^®, Zales Outlet^® and Peoples Jewellers and our two regional brands, Gordon’s Jewelers^® and Mappins Jewellers^®. Each brand specializes in fine jewelry and watches, with merchandise and marketing emphasis focused on diamond products. Zales Jewelers^® is our national brand in the U.S. providing moderately priced jewelry to a broad range of guests. Zales Outlet^® operates in outlet malls and neighborhood power centers and capitalizes on Zale Jewelers’^® national marketing and brand recognition. Gordon’s Jewelers^® is a value-oriented regional jeweler. Peoples Jewellers^®, Canada’s largest fine jewelry retailer, provides guests with an affordable assortment and an accessible shopping experience. Mappins Jewellers^® offers Canadian guests a broad selection of merchandise from engagement rings to fashionable and contemporary fine jewelry.

Kiosk Jewelry operates under the brand names Piercing Pagoda^®, Plumb Gold™, and Silver and Gold Connection^® through mall-based kiosks and is focused on the opening price point guest. Kiosk Jewelry specializes in gold, silver and non-precious metal products that capitalize on the latest fashion trends.

All Other includes our insurance and reinsurance operations, which offer insurance coverage primarily to our private label credit card guests.

We also maintain a presence in the retail market through our ecommerce sites, www.zales.com, www.zalesoutlet.com, www.gordonsjewelers.com, www.peoplesjewellers.com and www.pagoda.com.

We consolidate all of our U.S. operations into Zale Delaware, Inc. (“ZDel”), a wholly owned subsidiary of Zale Corporation. ZDel is the parent company for several subsidiaries, including three that are engaged primarily in providing credit insurance to our credit customers. We consolidate our Canadian retail operations into Zale Canada Holding, L.P., which is a wholly owned subsidiary of Zale Corporation. All significant intercompany transactions have been eliminated.

Cash and Cash Equivalents. Cash and cash equivalents include cash on hand, deposits in banks and short-term marketable securities at varying interest rates with original maturities of three months or less. Also included in cash equivalents are proceeds due from credit card transactions with settlement terms of less than five days. Under our credit card processing agreements, a portion of these proceeds are held back to serve as collateral for disputed charges. The credit card proceeds held back as of July 31, 2013 and 2012 were not material. The carrying amount of our cash equivalents approximates fair value due to the short-term maturity of those instruments.

Merchandise Inventories. Merchandise inventories are stated at the lower of cost or market. Substantially all U.S. inventories represent finished goods which are valued using the last-in, first-out (“LIFO”) retail inventory method. Merchandise inventory of our Canadian brands, Peoples Jewellers and Mappins Jewellers, is valued using the retail inventory method. Under the retail method, inventory is segregated into categories of merchandise with similar characteristics at its current average retail selling value. The determination of inventory cost and the resulting gross margins are calculated by applying an average cost-to-retail ratio to the retail value of inventory. At the end of fiscal year 2013, approximately 16 percent of our total inventory represented raw materials and finished goods in our distribution centers. The inventory related to our manufacturing program and distribution center is valued at the weighted-average cost of those items. The LIFO charge was $4.6 million, $22.4 million and $17.0 million for the years ended July 31, 2013, 2012 and 2011, respectively. The cumulative LIFO provision reflected in the accompanying consolidated balance sheets was $63.0 million and $58.3 million at July 31, 2013 and 2012, respectively. Domestic inventories, excluding the cumulative LIFO provision, were $690.5 million and $664.1 million at July 31, 2013 and 2012, respectively. Our Canadian inventory totaled $140.0 million and

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$136.0 million at July 31, 2013 and 2012, respectively.

Consignment inventory and the related contingent obligations are not reflected in our consolidated financial statements. Consignment inventory has historically consisted of test programs, merchandise at higher price points, or merchandise that otherwise does not warrant the risk of outright ownership. Consignment inventory can be returned to the vendor at any time. At the time consigned inventory is sold, we record the purchase liability in accounts payable and the related cost of merchandise in cost of sales. We had $149.1 million and $118.4 million of consignment inventory on hand at July 31, 2013 and 2012, respectively.

We are required to determine the LIFO cost on an interim basis by estimating annual inflation trends, annual purchases and ending inventory levels for the fiscal year. Actual annual inflation rates and inventory balances as of the end of any fiscal year may differ from interim estimates. We apply internally developed indices that we believe accurately and consistently measure inflation or deflation in the components of our merchandise (i.e., the proper weighting of diamonds, gold and other metals and precious stones) and our overall merchandise mix. We believe our internally developed indices more accurately reflect inflation or deflation in our own prices than the U.S. Bureau of Labor Statistics producer price indices or other published indices.

We also write-down the carrying value of our inventory for discontinued, slow-moving and damaged inventory. This write-down is equal to the difference between the cost of inventory and its estimated market value based upon assumptions of targeted inventory turn rates, future demand, management strategy and market conditions. If actual market conditions are less favorable than those projected by management or management strategy changes, additional inventory write-downs may be required and, in the case of a major change in strategy or downturn in market conditions, such write-downs could be significant.

Shrinkage is estimated for the period from the last inventory date to the end of the fiscal year on a store-by-store basis. Such estimates are based on experience and the shrinkage results from the last physical inventory. Physical inventories are taken at least once annually for all store locations and the distribution centers. The shrinkage rate from the most recent physical inventory, in combination with historical experience, could impact our shrinkage reserve.

Impairment of Long-Lived Assets. Long-lived assets are reviewed for impairment by comparing the carrying value of the assets with their estimated undiscounted future cash flows. If the evaluation indicates that the carrying amount of the asset may not be recoverable, the potential impairment is measured based on a projected discounted cash flow method, using a discount rate that is commensurate with the risk inherent in our current business model. Assumptions are made with respect to cash flows expected to be generated by the related assets based upon the most recent projections. Any changes in key assumptions, particularly store performance or market conditions, could result in an unanticipated impairment charge. For instance, in the event of a major market downturn or adverse developments within a particular market or portion of our business, individual stores may become unprofitable, which could result in a write-down of the carrying value of the assets in those stores.

Goodwill. In accordance with Accounting Standards Codification (“ASC”) 350, Intangibles – Goodwill and Other, we test goodwill for impairment annually, at the end of our second quarter, or more frequently if events occur which indicate a potential reduction in the fair value of a reporting unit’s net assets below its carrying value. We calculate estimated fair value using the present value of future cash flows expected to be generated using a weighted-average cost of capital, terminal values and updated financial projections. If our actual results are not consistent with estimates and assumptions used to calculate fair value, we may be required to recognize a goodwill impairment. See Note 5 for additional disclosures related to goodwill.

Revenue Recognition. We recognize revenue in accordance with ASC 605, Revenue Recognition. Revenue related to merchandise sales, which is approximately 90 percent of total revenues, is recognized at the time of sale, reduced by a provision for sales returns. The provision for sales returns is based on historical rates of return. Repair revenues are recognized when the service is complete and the merchandise is delivered to the guests.

Premium revenues from our insurance businesses relate to credit insurance policies sold to guests who purchase our merchandise under the customer credit programs. Insurance premium revenues from credit insurance subsidiaries were $10.9 million, $10.5 million and $10.0 million for the fiscal years ended July 31, 2013, 2012 and 2011,

10

respectively. These insurance premiums are recognized over the coverage period and included in revenues in the accompanying consolidated statements of operations.

We offer our Fine Jewelry guests lifetime warranties on certain products that cover sizing and breakage with an option to purchase theft protection for a two-year period. ASC 605-20, Revenue Recognition-Services (“ASC 605-20”), requires recognition of warranty revenue on a straight-line basis until sufficient cost history exists. Once sufficient cost history is obtained, revenue is required to be recognized in proportion to when costs are expected to be incurred. Prior to fiscal year 2012, the Company recognized revenue from lifetime warranties on a straight-line basis over a five-year period because sufficient evidence of the pattern of costs incurred was not available. During the first quarter of fiscal year 2012, we began recognizing revenue related to lifetime warranty sales in proportion to when the expected costs will be incurred, which we estimate will be over an eight-year period. A significant change in estimates related to the time period or pattern in which warranty-related costs are expected to be incurred could adversely impact our revenues. The deferred revenue balance as of July 31, 2011 related to lifetime warranties is being recognized prospectively, in proportion to the remaining estimated warranty costs. The change in estimate related to the pattern of revenue recognition and the life of the warranties was the result of accumulating additional historical evidence over the five-year period that we have been selling the lifetime warranties.

Revenues related to the optional theft protection are recognized over the two-year contract period on a straight-line basis. We also offer our Fine Jewelry guests a two-year watch warranty and our Fine Jewelry and Kiosk Jewelry guests a one-year warranty that covers breakage. The revenue from the two-year watch warranty and one-year breakage warranty is recognized on a straight-line basis over the respective contract terms.

Gross Margin. Gross margin represents net sales less cost of sales. Cost of sales includes cost related to merchandise sold, receiving and distribution, guest repairs and repairs associated with warranties.

Selling, General and Administrative. Included in selling, general and administrative (“SG&A”) are store operating, advertising, merchandising, costs of insurance operations and general corporate overhead expenses.

On July 9, 2013, we entered into a Private Label Credit Card Program Agreement (the “ADS Agreement”) with an affiliate of Alliance Data Systems Corporation (“ADS”) to provide financing to our U.S. guests to purchase merchandise through private label credit cards beginning no later than October 1, 2015. The ADS Agreement will replace our current agreement with Citibank which expires on October 1, 2015. In July 2013, we received a $38.0 million commencement payment upon signing the ADS Agreement. The commencement payment will be amortized over the initial term of the ADS Agreement as a reduction of merchant fees beginning on the commencement date of the agreement.

Operating Leases. Rent expense is recognized on a straight-line basis, including consideration of rent holidays, tenant improvement allowances received from the landlords and applicable rent escalations over the term of the lease. The commencement date of the rent expense is the earlier of the date when we become legally obligated for the rent payments or the date when we take possession of the building for construction purposes.

Capital Leases. We enter into capital leases related to vehicles for our field management. The vehicles are included in property and equipment in the accompanying consolidated balance sheets and are depreciated over a four-year life.

Depreciation and Amortization. Leasehold improvements are stated at cost and are amortized using the straight-line method over the estimated useful lives of the assets or remaining lease life, whichever is shorter, which generally range from 5 to 10 years. Fixtures and equipment are amortized using the straight-line method over the estimated useful lives of the assets, which range from 3 to 15 years. Original cost and related accumulated depreciation or amortization is removed from the accounts in the year assets are retired. Gains or losses on dispositions of property and equipment are recorded in the year of disposal and are included in SG&A in the accompanying consolidated statements of operations. Repairs and maintenance costs are expensed as incurred.

Stock-Based Compensation. Stock-based compensation is accounted for under ASC 718, Compensation – Stock Compensation, which requires the use of the fair value method of accounting for all stock-based compensation,

11

including stock options. Share-based awards are recognized as compensation expense over the requisite service period.

Stock Repurchase Program. During fiscal year 2008, the Board of Directors authorized share repurchases of $350 million. As of July 31, 2013, $23.3 million was remaining under our stock repurchase program.

Preferred Stock. At July 31, 2013 and 2012, 5.0 million shares of preferred stock, par value of $0.01, were authorized. None were issued or outstanding.

Self-Insurance. We are self-insured for certain losses related to property insurance, general liability, workers’ compensation and medical claims. Our liability represents an estimate of the ultimate cost of claims incurred as of the balance sheet dates. The estimated liability is not discounted and is established based upon analysis of historical data and actuarial estimates. While we believe these estimates are reasonable based on the information currently available, if actual trends, including the severity or frequency of claims, medical cost inflation, or fluctuations in premiums differ from our estimates, our results of operations could be impacted.

Advertising Expenses. Advertising is generally expensed when the advertisement is utilized and is a component of SG&A. Production costs are expensed upon the first occurrence of the advertisement. Advertising expenses were $83.6 million, $94.5 million and $76.5 million for the fiscal years ended July 31, 2013, 2012 and 2011, respectively, net of amounts contributed by vendors. Prepaid advertising at July 31, 2013 and 2012 totaled $4.9 million and $0.7 million, respectively, and is included in other current assets in the accompanying consolidated balance sheets.

Vendor Allowances. We receive cash or allowances from merchandise vendors primarily in connection with cooperative advertising programs and reimbursements for markdowns taken to sell the vendor’s products. We have agreements in place with each vendor setting forth the specific conditions for each allowance or payment. The majority of these agreements are entered into or renewed annually at the beginning of each fiscal year. Qualifying vendor reimbursements of costs incurred to specifically advertise vendors’ products are recorded as a reduction of advertising expense. All other allowances or cash payments received are recorded as a reduction to the cost of merchandise. Vendor allowances included in advertising expense totaled $1.9 million, $3.1 million and $1.0 million for the fiscal years ended July 31, 2013, 2012 and 2011, respectively. Vendor allowances included in cost of sales totaled $10.1 million, $5.2 million and $3.7 million for the years ended July 31, 2013, 2012 and 2011, respectively.

Income Taxes. Income taxes are accounted for under the asset and liability method prescribed by ASC 740, Income Taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the tax rate changes are enacted. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets unless it is more likely than not such assets will be realized.

We file income tax returns in the U.S. federal jurisdiction, in various states and in certain foreign jurisdictions. We are subject to U.S. federal examinations by tax authorities for fiscal years ending on or after July 31, 2009. We are subject to audit by taxing authorities of most states and certain foreign jurisdictions and are subject to examination by these taxing jurisdictions for fiscal years ending on or after July 31, 2008.

Sales Tax. We present revenues net of taxes collected and record the taxes as a liability in the consolidated balance sheets until the taxes are remitted to the appropriate taxing authority.

Foreign Currency. Translation adjustments result from translating foreign subsidiaries’ financial statements into U.S. dollars. Balance sheet accounts are translated at exchange rates in effect at the balance sheet date. Income statement accounts are translated at average exchange rates during the period. Resulting translation adjustments are included in the accompanying consolidated statements of comprehensive income (loss).

During the fiscal year ended July 31, 2013 and 2011, the average Canadian currency rate appreciated by less than one percent and approximately six percent, respectively, relative to the U.S. dollar. During the fiscal year ended

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July 31, 2012, the average Canadian currency rate depreciated by approximately one percent relative to the U.S. dollar. The changes in the Canadian currency rates did not have a material impact on the Company’s net earnings (loss) during the fiscal years ended July 31, 2013, 2012 and 2011. As a result of fluctuations in the Canadian dollar, we recorded losses totaling $0.7 million and $1.7 million and a gain totaling $1.4 million during the fiscal years ended July 31, 2013, 2012 and 2011, respectively, primarily associated with the settlement of Canadian accounts payable.

Discontinued Operations. In connection with the sale of the Bailey, Banks & Biddle brand in November 2007 and subsequent bankruptcy filed by the buyer, Finlay Fine Jewelry Corporation, on August 5, 2009, we remain contingently liable for certain leases for the remainder of the respective lease terms. As of July 31, 2013, the lease reserve related to the one remaining lease totaled $0.6 million.

Concentrations of Business and Credit Risk. During both fiscal years 2013 and 2012, we purchased approximately 22 percent of our finished merchandise from five vendors (excluding finished merchandise produced by our internal manufacturing organization) with no single vendor exceeding ten percent. In fiscal years 2013 and 2012, approximately 13 percent and 16 percent, respectively, of our merchandise requirements were assembled by our internal manufacturing organization. If purchases from these top vendors were disrupted, particularly at certain critical times during the year, our sales could be adversely affected in the short term until alternative supply arrangements could be established. As of July 31, 2013 and 2012, we had no significant concentrations of credit risk.

Use of Estimates. Our accounting and financial reporting policies are in conformity with U.S. generally accepted accounting principles. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. For example, unexpected changes in market conditions or a downturn in the economy could adversely affect actual results. Estimates are used in accounting for, among other things, inventory valuation, goodwill and long-lived asset valuation, LIFO inventory retail method, legal liability, credit insurance liability, product warranty, depreciation, workers’ compensation, taxes and contingencies. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in the consolidated financial statements in the period they are determined to be necessary.

Reclassification. Certain prior year amounts have been reclassified in the accompanying consolidated balance sheets to conform to our fiscal year 2013 presentation.

2. FAIR VALUE MEASUREMENTS

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. In determining fair value, ASC 820, Fair Value Measurement, establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair values. These tiers include:

Level 1 –	Quoted prices for identical instruments in active markets;
Level 2 –	Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose significant inputs are observable; and
Level 3 –	Instruments whose significant inputs are unobservable.

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Assets that are Measured at Fair Value on a Recurring Basis

The following tables include our assets that are measured at fair value on a recurring basis (in thousands):

	Fair Value as of
	July 31, 2013
	Level 1		Level 2		Level 3
U.S. Treasury securities	$	14,436	$	—	$	—
U.S. government agency securities		—		2,687		—
Corporate bonds and notes		—		828		—
Corporate equity securities		2,669		—		—
	$	17,105	$	3,515	$	—
	Fair Value as of
	July 31, 2012
	Level 1		Level 2		Level 3
U.S. Treasury securities	$	21,109	$	—	$	—
U.S. government agency securities		—		2,920		—
Corporate bonds and notes		—		1,314		—
Corporate equity securities		3,993		—		—
	$	25,102	$	4,234	$	—

Investments in U.S. Treasury securities and corporate equity securities are based on quoted market prices for identical instruments in active markets, and therefore were classified as a Level 1 measurement in the fair value hierarchy. Investments in U.S. government agency securities and corporate bonds and notes are based on quoted prices for similar instruments in active markets, and therefore were classified as a Level 2 measurement in the fair value hierarchy (see Note 7 for additional information related to our investments).

Assets that are Measured at Fair Value on a Nonrecurring Basis

Impairment losses related to store-level property and equipment are calculated using significant unobservable inputs including the present value of future cash flows expected to be generated using a risk-adjusted weighted-average cost of capital of 15.3 percent to 17.5 percent and positive comparable store sales growth assumptions, and therefore are classified as a Level 3 measurement in the fair value hierarchy. For the fiscal year ended July 31, 2013, store-level property and equipment of $1.2 million was written down to their fair value of $0.1 million, resulting in an impairment charge of $1.1 million. For the fiscal year ended July 31, 2012, store-level property and equipment of $2.2 million was written down to their fair value of $0.4 million, resulting in an impairment charge of $1.8 million.

Other Financial Instruments

As cash and short-term cash investments, trade payables and certain other short-term financial instruments are all short-term in nature, their carrying amount approximates fair value. The outstanding principal of our revolving credit agreement and senior secured term loan approximates fair value as of July 31, 2013. The fair value of the revolving credit agreement and the senior secured term loan were based on estimates of current interest rates for similar debt, a Level 3 input.

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3. OTHER CURRENT ASSETS

Other current assets consist of the following (in thousands):

	Year Ended July 31,
	2013		2012
Prepaid rent	$	19,666	$	19,738
Prepaid advertising		4,887		704
Tax receivables		8,104		9,711
Deferred tax asset		3,495		4,150
Other		16,468		12,387
	$	52,620	$	46,690

4. PROPERTY AND EQUIPMENT, NET

Property and equipment consists of the following (in thousands):

	Year Ended July 31,
	2013			2012
Leasehold improvements	$	223,424		$	229,524
Furniture and fixtures		452,923			463,911
Construction in progress		5,555			3,050
		681,902			696,485
Less accumulated depreciation and amortization		(573,027	)		(574,361	)
	$	108,875		$	122,124

5. GOODWILL

In accordance with ASC 350, Intangibles – Goodwill and Other, we test goodwill for impairment annually, at the end of our second quarter, or more frequently if events occur which indicate a potential reduction in the fair value of a reporting unit’s net assets below its carrying value. We calculate estimated fair value using the present value of future cash flows expected to be generated using a weighted average cost of capital, terminal values and updated financial projections. At the end of the second quarter of fiscal year 2013, we completed our annual impairment testing of goodwill. Based on the test results, we concluded that no impairment was necessary for the $79.0 million of goodwill related to the Peoples Jewellers acquisition and the $19.4 million of goodwill related to the Piercing Pagoda acquisition. As of the date of the test, the fair value of the Peoples Jewellers and Piercing Pagoda reporting units would have to decline by more than 20 percent and 59 percent, respectively, to be considered for potential impairment. We calculated the estimated fair value of our reporting units using Level 3 inputs, including: (1) cash flow projections for five years assuming positive comparable store sales growth; (2) terminal year growth rates of two percent based on estimates of long-term inflation expectations; and (3) discount rates of 15.3 percent to 17.5 percent, respectively, based on a risk-adjusted weighted average cost of capital that reflects current market conditions. While we believe we have made reasonable estimates and assumptions to calculate the fair value of the reporting units, it is possible a material change could occur. If our actual results are not consistent with estimates and assumptions used to calculate fair value, we may be required to recognize goodwill impairments.

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The changes in the carrying amount of goodwill are as follows (in thousands):

	Year Ended July 31,
	2013			2012
Goodwill, beginning of period	$	100,544		$	104,620
Foreign currency adjustments		(2,172	)		(4,076	)
Goodwill, end of period	$	98,372		$	100,544

6. OTHER ASSETS

Other assets consist of the following (in thousands):

	Year Ended July 31,
	2013		2012
Debt issuance costs	$	11,488	$	14,468
Investments in debt and equity securities		20,620		29,336
Other		3,570		3,986
	$	35,678	$	47,790

7. INVESTMENTS

Investments in debt and equity securities held by our insurance subsidiaries are reported as other assets in the accompanying consolidated balance sheets. Investments are recorded at fair value based on quoted market prices for identical or similar securities. All investments are classified as available-for-sale.

Our investments consist of the following (in thousands):

	Year Ended July 31, 2013				Year Ended July 31, 2012
	Cost		Fair Value		Cost		Fair Value
U.S. Treasury securities	$	13,501	$	14,436	$	19,423	$	21,109
U.S. government agency securities		2,543		2,687		2,673		2,920
Corporate bonds and notes		756		828		1,192		1,314
Corporate equity securities		1,942		2,669		3,501		3,993
	$	18,742	$	20,620	$	26,789	$	29,336

At July 31, 2013 and 2012, the carrying value of investments included a net unrealized gain of $1.9 million and $2.5 million, respectively, which is included in accumulated other comprehensive income. Realized gains and losses on investments are determined on the specific identification basis. The net realized gains totaled $0.7 million in fiscal year 2013 and $0.2 million in fiscal years 2012 and 2011. Investments with a carrying value of $7.4 million were on deposit with various state insurance departments at both July 31, 2013 and 2012, respectively, as required by law.

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Debt securities outstanding as of July 31, 2013 mature as follows (in thousands):

	Cost		Fair Value
Less than one year	$	3,610	$	3,682
Year two through year five		9,178		10,017
Year six through year ten		3,944		4,174
After ten years		68		78
	$	16,800	$	17,951

8. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

Accounts payable and accrued liabilities consist of the following (in thousands):

	Year Ended July 31,
	2013		2012
Accounts payable	$	135,650	$	133,071
Accrued payroll		20,379		12,734
Accrued taxes		16,716		15,166
Accrued and straight-line rent		11,955		11,904
Other		35,858		32,207
	$	220,558	$	205,082

9. LONG–TERM DEBT

Long-term debt consists of the following (in thousands):

	Year Ended July 31,
	2013		2012
Revolving credit agreement	$	327,200	$	369,800
Senior secured term loan		80,000		80,000
Capital lease obligations		2,850		3,108
	$	410,050	$	452,908

Amended and Restated Revolving Credit Agreement

On July 24, 2012, we amended and restated our revolving credit agreement (the “Amended Credit Agreement”) with Bank of America, N.A. and certain other lenders. The Amended Credit Agreement totals $665 million, including a $15 million first-in, last-out facility (the “FILO Facility”), and matures in July 2017. Borrowings under the Amended Credit Agreement (excluding the FILO Facility) are limited to a borrowing base equal to 90 percent of the appraised liquidation value of eligible inventory (less certain reserves that may be established under the agreement), plus 90 percent of eligible credit card receivables. Borrowings under the FILO Facility are limited to a borrowing base equal to the lesser of: (i) 2.5 percent of the appraised liquidation value of eligible inventory or (ii) $15 million. The Amended Credit Agreement is secured by a first priority security interest and lien on merchandise inventory, credit card receivables and certain other assets and a second priority security interest and lien on all other assets.

Based on the most recent inventory appraisal, the monthly borrowing rates calculated from the cost of eligible inventory range from 69 to 72 percent for the period of August through September 2013, 81 to 83 percent for the period of October through December 2013 and 68 to 73 percent for the period of January through July 2014.

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Borrowings under the Amended Credit Agreement (excluding the FILO Facility) bear interest at either: (i) LIBOR plus the applicable margin (ranging from 175 to 225 basis points) or (ii) the base rate (as defined in the Amended Credit Agreement) plus the applicable margin (ranging from 75 to 125 basis points). Borrowings under the FILO Facility bear interest at either: (i) LIBOR plus the applicable margin (ranging from 350 to 400 basis points) or (ii) the base rate plus the applicable margin (ranging from 250 to 300 basis points). We are also required to pay a quarterly unused commitment fee of 37.5 basis points based on the preceding quarter’s unused commitment.

In September 2013, we executed interest rate swaps with Bank of America, N.A. to hedge the variability of cash flows resulting from fluctuations in the one-month LIBOR associated with our Amended Credit Agreement. The interest rate swaps will replace the one-month LIBOR with the fixed interest rates shown in the table below and will be settled monthly. The swaps qualify as cash flow hedges and, to the extent effective, changes in their fair values will be recorded in accumulated other comprehensive income in the consolidated balance sheet.

Interest rate swaps executed in September 2013 are as follows:

			Fixed
	Notional Amount		Interest
Period	(in thousands)		Rate
October 2013 - July 2014	$	215,000		0.29	%
August 2014 - July 2016	$	215,000		1.19	%

If excess availability (as defined in the Amended Credit Agreement) falls below certain levels we will be required to maintain a minimum fixed charge coverage ratio of 1.0. Borrowing availability was approximately $242 million as of July 31, 2013, which exceeded the excess availability requirement by $185 million. The fixed charge coverage ratio was 2.72 as of July 31, 2013. The Amended Credit Agreement contains various other covenants including restrictions on the incurrence of certain indebtedness, payment of dividends, liens, investments, acquisitions and asset sales. As of July 31, 2013, we were in compliance with all covenants.

We incurred debt issuance costs associated with the revolving credit agreement totaling $12.1 million, which consisted of $5.6 million of costs related to the Amended Credit Agreement and $6.5 million of unamortized costs associated with the prior agreement. The debt issuance costs are included in other assets in the accompanying consolidated balance sheets and are amortized to interest expense on a straight-line basis over the five-year life of the agreement.

Interest paid under the revolving credit agreement during fiscal years 2013, 2012 and 2011 was $10.6 million, $14.3 million and $10.4 million, respectively.

Amended and Restated Senior Secured Term Loan

On July 24, 2012, we amended and restated our senior secured term loan (the “Amended Term Loan”) with Z Investment Holdings, LLC, an affiliate of Golden Gate Capital. The Amended Term Loan totals $80.0 million, matures in July 2017 and is subject to a borrowing base equal to: (i) 107.5 percent of the appraised liquidation value of eligible inventory plus (ii) 100 percent of credit card receivables and an amount equal to the lesser of $40 million or 100 percent of the appraised liquidation value of intellectual property minus (iii) the borrowing base under the Amended Credit Agreement. In the event the outstanding principal under the Amended Term Loan exceeds the Amended Term Loan borrowing base, availability under the Amended Credit Agreement would be reduced by the excess. As of July 31, 2013, the outstanding principal under the Amended Term Loan did not exceed the borrowing base. The Amended Term Loan is secured by a second priority security interest on merchandise inventory and credit card receivables and a first priority security interest on substantially all other assets.

Borrowings under the Amended Term Loan bear interest at 11 percent payable on a quarterly basis. We may repay all or any portion of the Amended Term Loan with the following penalty prior to maturity: (i) the present value of the required interest payments that would have been made if the prepayment had not occurred during the first year; (ii) 4 percent during the second year; (iii) 3 percent during the third year; (iv) 2 percent during the fourth year and

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(v) no penalty in the fifth year. The Amended Credit Agreement restricts our ability to prepay the Amended Term Loan if the fixed charge coverage ratio is not equal to or greater than 1.0 after giving effect to the prepayment.

The Amended Term Loan includes various covenants which are consistent with the covenants in the Amended Credit Agreement, including restrictions on the incurrence of certain indebtedness, payment of dividends, liens, investments, acquisitions, asset sales and the requirement to maintain a minimum fixed charge coverage ratio of 1.0 if excess availability thresholds under the Amended Credit Agreement are not maintained. As of July 31, 2013, we were in compliance with all covenants.

We incurred costs associated with the Amended Term Loan totaling $4.4 million, of which approximately $2 million was recorded in interest expense during the fourth quarter of fiscal year 2012. The remaining $2.4 million consists of debt issuance costs included in other assets in the accompanying consolidated balance sheet and are amortized to interest expense on a straight-line basis over the five-year life of the agreement. We also incurred a $3.0 million prepayment premium related to the $60.5 million prepayment on the prior term loan. The $3.0 million prepayment premium was recorded in interest expense during the fourth quarter of fiscal year 2012.

In fiscal year 2011, we recorded a charge to interest expense totaling $45.8 million as a result of an amendment to the prior term loan on September 24, 2010. In accordance with ASC 470-50, Debt–Modifications and Extinguishments, the amendment was considered a significant modification which required us to account for the prior term loan and related unamortized costs as an extinguishment and record the loan at fair value. The charge consisted of $20.3 million related to the unamortized discount associated with the warrants (see below) issued in connection with the prior term loan, a $12.5 million amendment fee, $10.3 million related to unamortized debt issue costs and $2.7 million related to a prepayment premium and other costs.

Interest paid under the term loan during fiscal years 2013, 2012 and 2011 was $8.9 million, $20.8 million and $21.7 million, respectively.

Warrant and Registration Rights Agreement

In connection with the execution of the senior secured term loan in May 2010, we entered into a Warrant and Registration Rights Agreement (the “Warrant Agreement”) with Z Investment Holdings, LLC. Under the terms of the Warrant Agreement, we issued 6.4 million A-Warrants and 4.7 million B-Warrants (collectively, the “Warrants”) to purchase shares of our common stock, on a one-for-one basis, for an exercise price of $2.00 per share. The Warrants, which are currently exercisable and expire in May 2017, represented 25 percent of our common stock on a fully diluted basis (including the shares issuable upon exercise of the Warrants and excluding certain out-of-the-money stock options) as of the date of the issuance. The A-Warrants were exercisable immediately; however, the B-Warrants were not exercisable until the shares of common stock to be issued upon exercise of the B-Warrants were approved by our stockholders, which occurred on July 23, 2010. The number of shares and exercise price are subject to customary antidilution protection. The Warrant Agreement also entitles the holder to designate two, and in certain circumstances three, directors to our board. The holders of the Warrants may, at their option, request that we register for resale all or part of the common stock issuable under the Warrant Agreement.

The fair value of the Warrants totaled $21.3 million as of the date of issuance and was recorded as a long-term liability, with a corresponding discount to the carrying value of the prior term loan. On July 23, 2010, the stockholders approved the shares of common stock to be issued upon exercise of the B-Warrants. The long-term liability associated with the Warrants was marked-to-market as of the date of the stockholder approval resulting in an $8.3 million gain during the fourth quarter of fiscal year 2010. The remaining amount of $13.0 million was reclassified to stockholders’ investment and is included in additional paid-in capital in the accompanying consolidated balance sheet. The remaining unamortized discount totaling $20.3 million associated with the Warrants was charged to interest expense as a result of an amendment to the prior term loan on September 24, 2010.

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Capital Lease Obligations

We enter into capital leases related to vehicles for our field management. The vehicles are included in property and equipment in the accompanying consolidated balance sheets and are depreciated over a four-year life. Capital leases, net of accumulated depreciation, included in property and equipment as of July 31, 2013 and 2012 totaled $2.9 million and $3.1 million, respectively.

10. OTHER LIABILITIES

Other liabilities consist of the following (in thousands):

	Year Ended July 31,
	2013		2012
Deferred income (a)	$	38,000	$	—
Long-term straight-line rent		23,467		27,110
Credit insurance reserves		5,592		5,527
Deferred tax liability		5,998		5,727
	$	73,057	$	38,364

(a) Represents commencement payment received in July 2013 associated with the signing of the ADS Agreement (see Note 1).

11. OTHER (GAINS) CHARGES

Other (gains) charges consist of the following (in thousands):

	Year Ended July 31,
	2013			2012		2011
Store impairments	$	1,119		$	1,751	$	6,762
Store closure adjustments		324			222		285
De Beers settlement		(2,191	)		—		—
	$	(748	)	$	1,973	$	7,047

During fiscal years 2013, 2012 and 2011, we recorded charges related to the impairment of long-lived assets of underperforming stores totaling $1.1 million, $1.8 million and $6.8 million, respectively. The impairment of long-lived assets is based on the amount that the carrying value exceeds the estimated fair value of the assets. The fair value is based on future cash flow projections over the remaining lease term using a discount rate that we believe is commensurate with the risk inherent in our current business model. If actual results are not consistent with our cash flow projections, we may be required to record additional impairments. If operating earnings over the remaining lease term for each store included in our impairment test as of July 31, 2013 were to decline by 20 percent, we would be required to record additional impairments of $0.5 million.

We have recorded lease termination charges related to certain store closures, primarily in Fine Jewelry. The lease termination charges for leases where the Company has finalized settlement negotiations with the landlords are based on the amounts agreed upon in the termination agreement. If a settlement has not been reached for a lease, the charges are based on the present value of the remaining lease rentals, including common area maintenance and other charges, reduced by estimated sublease rentals that could reasonably be obtained. There was no material lease reserve balance associated with closed stores at July 31, 2013 and 2012.

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Beginning in June 2004, various class-action lawsuits were filed alleging that the De Beers group violated U.S. state and federal antitrust, consumer protection and unjust enrichment laws. During fiscal year 2013, we received proceeds totaling $2.2 million as a result of a settlement reached in the lawsuit.

12. LEASES

We rent substantially all of our retail space under operating leases that generally range from 5 to 10 years and may contain minimum rent escalations, while kiosk leases generally range from 3 to 5 years. We also lease certain vehicles under capital leases for a term of four years. We recognize the minimum rent payments on a straight-line basis over the term of the lease, including the construction period. Contingent rentals paid to lessors of certain store facilities are determined principally on the basis of a percentage of sales in excess of levels contained in the respective leases. All existing real estate leases are operating leases. Rent expense from continuing operations is included in SG&A and is as follows (in thousands):

	Year Ended July 31,
	2013		2012		2011
Retail space:
Minimum rentals	$	183,266	$	184,239	$	188,766
Rentals based on sales		6,629		5,721		2,796
		189,895		189,960		191,562
Corporate headquarters		4,072		3,931		3,837
	$	193,967	$	193,891	$	195,399

Future minimum lease payments as of July 31, 2013, for all non-cancelable leases were as follows (in thousands):

Fiscal	Capital			Operating
Year Ended	Leases			Leases
2014	$	1,184		$	173,782
2015		1,184			141,188
2016		590			112,318
2017		46			87,366
2018		—			60,340
Thereafter		—			140,806
	$	3,004		$	715,800
Less imputed interest		(154	)
Capital lease obligation	$	2,850

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13. INCOME TAXES

Currently, we file a consolidated U.S. federal income tax return. The effective income tax rate from continuing operations varies from the federal statutory rate of 35 percent as follows (in thousands):

	Year Ended July 31,
	2013			2012			2011
Federal income tax expense (benefit) at statutory rate	$	4,177		$	(8,936	)	$	(38,750	)
State income taxes, net of federal benefit		858			(2,767	)		(4,250	)
Tax on repatriation of foreign earnings		3,954			5,950			14,099
Foreign tax rate changes and differential (a)		577			225			(1,274	)
Change in valuation allowance		(6,977	)		2,285			44,406
Depreciation and amortization adjustment (b)		—			—			(8,512	)
Other		(665	)		4,608			(4,162	)
Income tax expense	$	1,924		$	1,365		$	1,557
Effective income tax rate		16.1	%		(5.3	)%		(1.4	)%

(a) For the past three years, Canada has reduced both its federal statutory and provincial tax rates. In fiscal year 2012, Puerto Rico reduced its federal statutory tax rate. Foreign tax rate differential represents the difference between the statutory tax rate in the U.S. and the statutory tax rates in Canada and Puerto Rico.

(b) The $8.5 million adjustment in fiscal year 2011 was fully offset with a valuation allowance, resulting in no impact to the consolidated statement of operations.

The provision for income taxes from continuing operations consists of the following (in thousands):

	Year Ended July 31,
	2013			2012			2011
Current income tax expense (benefit):
Federal	$	232		$	349		$	(9,628	)
Foreign		1,131			664			5,003
State		(604	)		(1,206	)		910
Total current income tax expense (benefit)		759			(193	)		(3,715	)
Deferred income tax expense:
Federal		102			(166	)		5,114
Foreign		986			1,675			159
State		77			49			(1	)
Total deferred income tax expense		1,165			1,558			5,272
	$	1,924		$	1,365		$	1,557

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Deferred tax assets and liabilities are determined based on the estimated future tax effects of the difference between the financial statement and tax basis of asset and liability balances using statutory tax rates. Tax effects of temporary differences that give rise to significant components of the deferred tax assets and deferred tax liabilities at July 31, 2013 and 2012, respectively, are as follows (in thousands):

	Year Ended July 31,
	2013			2012
Assets:
Accrued liabilities	$	78,754		$	84,515
Inventory reserves		7,220			7,083
Deferred income		14,033			—
Net operating loss carryforward		100,407			120,277
Stock-based compensation		7,067			7,160
Investments in subsidiaries		3,177			1,752
Foreign tax credits		13,978			12,609
Property and equipment		9,355			9,326
Other		2,854			5,986
Total deferred tax assets		236,845			248,708
Valuation allowances		(92,149	)		(98,995	)
Total deferred tax assets, net	$	144,696		$	149,713
Liabilities:
Merchandise inventories, principally due to LIFO reserve	$	(129,273	)	$	(119,256	)
Undistributed earnings		—			(13,973	)
Goodwill		(13,869	)		(13,941	)
Other		(3,963	)		(3,853	)
Total deferred tax liabilities		(147,105	)		(151,023	)
Deferred tax liabilities, net	$	(2,409	)	$	(1,310	)

Deferred tax assets and liabilities in the accompanying consolidated balance sheets are as follows (in thousands):

	Year Ended July 31,
	2013			2012
Other current assets	$	3,495		$	4,150
Deferred tax asset		107,110			96,929
Deferred tax liability		(107,016	)		(96,662	)
Other liabilities		(5,998	)		(5,727	)
Deferred tax liabilities, net	$	(2,409	)	$	(1,310	)

We are required to assess the available positive and negative evidence to estimate if sufficient future income will be generated to utilize deferred tax assets. A significant piece of negative evidence that we consider is cumulative losses (generally defined as losses before income taxes) incurred over the most recent three-year period. Such evidence limits our ability to consider other subjective evidence such as our projections for future growth. As of July 31, 2013 and 2012, cumulative losses were incurred over the applicable three-year period.

Our valuation allowances totaled $92.1 million and $99.0 million as of July 31, 2013 and 2012, respectively. The valuation allowances were established due to the uncertainty of our ability to utilize certain federal, state and foreign net operating loss carryforwards in the future. The amount of the deferred tax asset considered realizable could be adjusted if negative evidence, such as three-year cumulative losses, no longer exists and additional consideration is given to our growth projections.

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Deferred tax assets associated with foreign tax credits totaled $14.0 million and $12.6 million as of July 31, 2013 and 2012, respectively. The net operating loss carryforwards, including foreign tax credits, expire from fiscal year 2014 to fiscal year 2033. These carryforwards may be subject to limitations under Section 382 of the Internal Revenue Code if significant ownership changes occur in the future.

In fiscal year 2011, we recorded income tax benefits totaling $4.6 million related to tax refunds associated with net operating loss carrybacks pursuant to the Worker, Homeownership and Business Assistance Act of 2009 (the “Business Assistance Act”). The Business Assistance Act was enacted in November 2009 and includes provisions that extend the time period in which net operating loss carrybacks can be utilized from two to five years, with certain limitations.

Income tax refunds, net of taxes paid, during fiscal years 2013, 2012 and 2011 totaled $2.2 million, $0.8 million and $2.5 million, respectively.

Uncertain Tax Positions

We operate in a number of tax jurisdictions and are subject to examination of our income tax returns by tax authorities in those jurisdictions who may challenge any item on these returns. Because the tax matters challenged by tax authorities are typically complex, the ultimate outcome of these challenges is uncertain. In accordance with ASC 740, Income Taxes, we recognize the benefits of uncertain tax positions in our financial statements only after determining that it is more likely than not that the uncertain tax positions will be sustained.

The total amount of unrecognized tax benefits as of July 31, 2013 was $3.5 million, of which $2.5 million would favorably impact the effective tax rate if resolved in our favor. Over the next twelve months, management does not anticipate that the amount of unrecognized tax benefits will be materially reduced due to our tax position being sustained upon audit or as a result of the expiration of the statute of limitations for specific jurisdictions.

A reconciliation of the fiscal year 2013 beginning and ending balance of unrecognized tax benefits is as follows (in thousands):

	Unrecognized
	Tax Benefits
Balance at July 31, 2012	$	3,631
Additions based on tax positions related to prior years		555
Settlements with tax authorities		(341	)
Expiration of statute of limitations		(331	)
Balance at July 31, 2013	$	3,514

We recognize accrued interest and penalties related to unrecognized tax benefits in our income tax expense. We had $1.5 million, $1.9 million and $2.6 million of interest and penalties accrued at July 31, 2013, 2012 and 2011, respectively. There was no material interest expense in fiscal years 2013, 2012 and 2011.

14. STOCK-BASED COMPENSATION

We are authorized to provide grants of options to purchase our common stock, restricted stock, time-vested restricted stock units, performance-based restricted stock units and other awards under the 2011 Omnibus Incentive Plan, as amended (“2011 Incentive Plan”). The 2011 Incentive Plan replaced the Zale Corporation 2003 Stock Incentive Plan and the Non-Employee Director Equity Compensation Plan. We are authorized to issue up to 5.5 million shares of our common stock for stock options and restricted stock to employees and non-employee directors under the plans. As of July 31, 2013, we have 1.0 million shares available to be issued under the plans. Stock options and restricted share awards are issued from treasury stock. Stock-based compensation expense is included in SG&A in the consolidated statements of operations and totaled $3.3 million, $2.7 million and $2.2 million for the fiscal years ended July 31, 2013, 2012 and 2011, respectively. The income tax benefit recognized in the consolidated statements of operations related to stock-based compensation totaled $1.2 million, $1.0 million and $0.1 million during fiscal years 2013, 2012 and 2011, respectively.

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Stock Options. Stock options are granted at an exercise price equal to or greater than the market value of the shares of our common stock at the date of grant, generally vest ratably over a four-year period and generally expire ten years from the date of grant. Expense related to stock options is recognized using a graded-vesting schedule over the vesting period. As of July 31, 2013, there was $1.6 million of unrecognized compensation cost related to stock option awards that is expected to be recognized over a weighted-average period of 1.9 years.

Stock option transactions during fiscal year 2013 are summarized as follows:

						Weighted-
				Weighted-		Average
				Average		Remaining
	Number of			Exercise		Contractual		Aggregate
	Options			Price		Life (Years)		Intrinsic Value
Outstanding, beginning of year		3,624,907		$	10.31
Granted		10,500			5.15
Exercised		(65,325	)		2.30
Forfeited		(106,850	)		3.02
Expired		(255,949	)		23.49
Outstanding, end of year		3,207,283		$	9.65		6.07	$	13,801,439
Options exercisable, end of year		2,099,758		$	13.09		5.21	$	7,335,791

For the year ended July 31, 2013, the total intrinsic value of stock options exercised was $0.3 million. The total intrinsic value of stock options exercised during fiscal years 2012 and 2011 was not material. The weighted-average fair values of option grants were $3.70, $2.51 and $1.38 during fiscal years 2013, 2012 and 2011, respectively. The fair value of stock options that vested during both fiscal years 2013 and 2012 totaled $1.6 million. The fair value of stock options that vested during fiscal year 2011 totaled $2.0 million.

The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option pricing model. The following table presents the weighted-average assumptions used in the option pricing model for stock option grants in fiscal years 2013, 2012 and 2011:

	2013			2012			2011
Expected volatility		107.0	%		101.4	%		93.5	%
Risk-free interest rate		0.5	%		0.7	%		1.0	%
Expected lives in years		4.0			4.0			4.0
Dividend yield		0.0	%		0.0	%		0.0	%

Expected volatility and the expected life of the stock options are based on historical experience. The risk-free rate is based on a U.S. Treasury yield that has a life which approximates the expected life of the option.

Restricted Share Awards. Restricted share awards consist of restricted stock, restricted stock units and performance-based restricted stock units. Restricted stock and restricted stock units granted to employees through fiscal year 2007 generally vested on the third anniversary of the grant date and are subject to restrictions on sale or transfer. Restricted stock and restricted stock units granted to employees between fiscal year 2007 and fiscal year 2011 generally vest twenty-five percent on the second and third anniversary of the date of the grant and the remaining fifty percent vest on the fourth anniversary of the date of the grant, subject to restrictions on sale or transfer. Restricted stock and restricted stock units granted to employees after fiscal year 2011 vest ratably over a three-year vesting period. Restricted stock granted to non-employee directors vest on the first anniversary of the grant date or, if earlier, the date of the next annual stockholder meeting and are subject to restrictions on sale or transfer. The fair value of restricted stock and restricted stock units is based on our closing stock price on the date of grant. Performance-based restricted stock units entitle the holder to receive a specified number of shares of our common

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stock based on our achievement of performance targets established by the Compensation Committee. There were 297,500 performance-based restricted stock units outstanding as of July 31, 2013 and 2012. At the sole discretion of the Compensation Committee, the holder of a restricted stock unit or performance-based restricted stock unit may receive a cash payment in lieu of a payout of shares of common stock equal to the fair market value of the number of shares of common stock the holder otherwise would have received. The total fair value of restricted share awards that vested during fiscal years 2013, 2012 and 2011, was $3.0 million, $0.2 million and $0.1 million, respectively. As of July 31, 2013, there was $3.3 million of unrecognized compensation cost related to restricted stock awards that is expected to be recognized over a weighted-average period of 1.7 years.

Restricted share award transactions during fiscal year 2013 are summarized as follows:

	Number of			Weighted-
	Restricted			Average
	Share			Fair Value
	Awards			Per Award
Restricted share awards, beginning of year		1,473,497		$	3.29
Granted		238,483			5.88
Vested		(446,982	)		3.49
Forfeited		(33,375	)		3.19
Restricted share awards, end of year		1,231,623		$	3.73

15. EARNINGS (LOSS) PER COMMON SHARE

Basic earnings (loss) per common share is computed by dividing net earnings (loss) by the weighted average number of common shares outstanding for the reporting period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For the calculation of diluted earnings per share, the basic weighted average number of shares is increased by the dilutive effect of stock options, restricted share awards and warrants issued in connection with the senior secured term loan using the treasury stock method.

The following table presents a reconciliation of the diluted weighted average shares (in thousands):

	Year Ended July 31,
	2013		2012		2011
Basic weighted average shares		32,429		32,196		32,129
Effect of potential dilutive securities:
Warrants		7,189		—		—
Stock options and restricted share awards		1,340		—		—
Diluted weighted average shares		40,958		32,196		32,129

The calculation of diluted weighted average shares excludes the impact of 1.2 million, 5.1 million and 3.0 million antidilutive stock options and restricted share awards for the years ended July 31, 2013, 2012 and 2011, respectively. The calculation of diluted weighted average shares also excludes the impact of 11.1 million antidilutive warrants for both the years ended July 31, 2012 and 2011.

We incurred a net loss of $27.3 million and $112.3 million for the years ended July 31, 2012 and 2011, respectively. A net loss causes all outstanding stock options, restricted share awards and warrants to be antidilutive. As a result, the basic and dilutive losses per common share are the same for those fiscal years.

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16. ACCUMULATED OTHER COMPREHENSIVE INCOME

The following table includes detail regarding changes in the composition of accumulated other comprehensive income (in thousands):

							Total
							Accumulated
	Cumulative						Other
	Translation			Unrealized Gain			Comprehensive
	Adjustment			on Securities			Income
Balance at July 31, 2010	$	46,300		$	1,406		$	47,706
Cumulative translation adjustment		14,190			—			14,190
Unrealized gain on securities		—			924			924
Reclassification to earnings		—			(169	)		(169	)
Balance at July 31, 2011		60,490			2,161			62,651
Cumulative translation adjustment		(9,668	)		—			(9,668	)
Unrealized gain on securities		—			628			628
Reclassification to earnings		—			(242	)		(242	)
Balance at July 31, 2012		50,822			2,547			53,369
Cumulative translation adjustment		(5,685	)		—			(5,685	)
Unrealized gain on securities		—			34			34
Reclassification to earnings		—			(703	)		(703	)
Balance at July 31, 2013	$	45,137		$	1,878		$	47,015

17. SEGMENTS

We report our operations under three business segments: Fine Jewelry, Kiosk Jewelry and All Other (see Note 1). All corresponding items of segment information in prior periods have been presented consistently. Management’s expectation is that overall economics of each of our major brands within each reportable segment will be similar over time.

We use earnings before unallocated corporate overhead, interest and taxes but include an internal charge for inventory carrying cost to evaluate segment profitability. Unallocated costs before income taxes include corporate employee-related costs, administrative costs, information technology costs, corporate facilities costs and depreciation and amortization. Income tax information by segment is not included as taxes are calculated at a company-wide level and not allocated to each segment.

27

	Year Ended July 31,
Selected Financial Data by Segment	2013			2012			2011
	(amounts in thousands)
Revenues:
Fine Jewelry (a)	$	1,637,359		$	1,617,684		$	1,493,294
Kiosk		239,722			238,692			239,231
All Other		10,935			10,502			10,038
Total revenues	$	1,888,016		$	1,866,878		$	1,742,563
Depreciation and amortization:
Fine Jewelry	$	22,230		$	23,924		$	28,009
Kiosk		2,694			3,153			3,361
All Other		—			—			—
Unallocated		8,846			10,810			9,956
Total depreciation and amortization	$	33,770		$	37,887		$	41,326
Operating earnings (loss):
Fine Jewelry (b)	$	49,112		$	31,464		$	(15,875	)
Kiosk		15,915			14,850			15,270
All Other		5,226			5,091			5,184
Unallocated (c)		(35,135	)		(32,287	)		(32,445	)
Total operating earnings (loss)	$	35,118		$	19,118		$	(27,866	)
Assets (d):
Fine Jewelry (e)	$	852,308		$	821,427		$	807,771
Kiosk		73,975			85,828			85,999
All Other		27,725			38,110			40,406
Unallocated		233,247			235,103			254,582
Total assets	$	1,187,255		$	1,180,468		$	1,188,758
Capital expenditures:
Fine Jewelry	$	16,513		$	13,843		$	8,818
Kiosk		546			—			—
All Other		—			—			—
Unallocated		5,970			5,932			6,497
Total capital expenditures	$	23,029		$	19,775		$	15,315

(a) Includes $316.9 million, $313.0 million and $298.1 million in fiscal years 2013, 2012 and 2011, respectively, related to foreign operations. In addition, fiscal year 2012 includes a $34.9 million adjustment as a result of a change in the revenue recognition related to lifetime warranties.

(b) Includes $1.4 million, $2.0 million and $7.0 million in fiscal years 2013, 2012 and 2011, respectively, related to charges associated with store closures and store impairments. In addition, fiscal year 2012 includes $34.9 million of additional earnings as a result of a change in the revenue recognition related to lifetime warranties.

(c) Includes credits of $63.4 million, $58.9 million and $50.8 million in fiscal years 2013, 2012 and 2011, respectively, to offset internal carrying costs charged to the segments. Fiscal year 2013 also includes a gain totaling $2.2 million related to the De Beers group settlement.

(d) Assets allocated to segments include fixed assets, inventories, goodwill and investments held by our insurance operations. Unallocated assets include cash, prepaid assets such as rent, corporate office improvements and technology infrastructure.

(e) Includes $31.2 million, $31.3 million and $33.4 million of fixed assets in fiscal years 2013, 2012 and 2011, respectively, related to foreign operations.

28

18. CONTINGENCIES

In November 2009, the Company and four former officers, Neal L. Goldberg, Rodney Carter, Mary E. Burton and Cynthia T. Gordon, were named as defendants in two purported class-action lawsuits filed in the United States District Court for the Northern District of Texas. On August 9, 2010, the two lawsuits were consolidated into one lawsuit, which alleged various violations of securities laws arising from the financial statement errors that led to the restatement completed by the Company as part of its Annual Report on Form 10-K for the fiscal year ended July 31, 2009. The lawsuit requested unspecified damages and costs. On August 1, 2011, the Court dismissed the lawsuit with prejudice. The plaintiffs appealed the decision and on November 30, 2012 the United States Court of Appeals upheld the trial court’s decision and affirmed dismissal of the plaintiff’s case. The plaintiffs did not appeal this ruling and the matter was therefore dismissed with prejudice.

The Company is a defendant in two purported class action lawsuits, Tessa Hodge v. Zale Delaware, Inc., d/b/a Piercing Pagoda which was filed on April 23, 2013 in California Superior Court and Naomi Tapia v. Zale which was filed on July 3, 2013 in the U.S. District Court, Southern District of California. The cases include allegations that the Company violated various wage and hour labor laws. Relief is sought on behalf of current and former Piercing Pagoda and Zales employees. Both lawsuits seek to recover damages, penalties and attorneys’ fees as a result of the alleged violations. The Company is investigating the underlying allegations and intends to vigorously defend its position against them. The Company cannot reasonably estimate the potential loss or range of loss, if any, for either lawsuit.

We are involved in legal and governmental proceedings as part of the normal course of our business. Reserves have been established based on management’s best estimates of our potential liability in these matters. These estimates have been developed in consultation with internal and external counsel and are based on a combination of litigation and settlement strategies. Management believes that such litigation and claims will be resolved without material effect on our financial position or results of operations.

19. DEFERRED REVENUE

We offer our Fine Jewelry guests lifetime warranties on certain products that cover sizing and breakage with an option to purchase theft protection for a two-year period. ASC 605-20 requires recognition of warranty revenue on a straight-line basis until sufficient cost history exists. Once sufficient cost history is obtained, revenue is required to be recognized in proportion to when costs are expected to be incurred. Prior to fiscal year 2012, the Company recognized revenue from lifetime warranties on a straight-line basis over a five-year period because sufficient evidence of the pattern of costs incurred was not available. During the first quarter of fiscal year 2012, we began recognizing revenue related to lifetime warranty sales in proportion to when the expected costs will be incurred, which we estimate will be over an eight-year period. A significant change in estimates related to the time period or pattern in which warranty-related costs are expected to be incurred could adversely impact our revenues. The deferred revenue balance as of July 31, 2011 related to lifetime warranties is being recognized prospectively, in proportion to the remaining estimated warranty costs. The change in estimate related to the pattern of revenue recognition and the life of the warranties was the result of accumulating additional historical evidence over the five-year period that we have been selling the lifetime warranties. The change in estimate increased revenues by $34.9 million and decreased our net loss by $32.4 million during fiscal year 2012. As a result, basic and diluted net loss per share improved by $1.00 per share during fiscal year 2012.

Revenues related to the optional theft protection are recognized over the two-year contract period on a straight-line basis. We also offer our Fine Jewelry guests a two-year watch warranty and our Fine Jewelry and Kiosk Jewelry guests a one-year warranty that covers breakage. The revenue from the two-year watch warranty and one-year breakage warranty is recognized on a straight-line basis over the respective contract terms.

29

The change in deferred revenue associated with the sale of warranties is as follows (in thousands):

	Year Ended July 31,
	2013			2012
Deferred revenue, beginning of period	$	208,516		$	232,180
Warranties sold (a)		130,169			123,121
Revenue recognized		(147,440	)		(146,785	)
Deferred revenue, end of period	$	191,245		$	208,516

(a) Warranty sales for the years ended July 31, 2013 and 2012 include approximately $0.9 million and $1.9 million, respectively, related to the depreciation in the Canadian currency rate on the beginning of the period deferred revenue balance.

Revenues associated with warranties in fiscal years 2013, 2012 and 2011 totaled $147.4 million, $146.8 million and $96.8 million, respectively. Gross margin associated with warranties in fiscal years 2013, 2012 and 2011 totaled $120.1 million, $120.8 million and $75.2 million, respectively.

20. RETIREMENT PLANS

We maintain the Zale Corporation Savings & Investment Plan (the “U.S. Plan”) and the Zale Corporation Puerto Rico Employees Savings and Investment Plan (the “PR Plan”, collectively the “Plans”). The Plans are defined contribution plans covering substantially all employees of the Company who have completed one year of service (at least 1,000 hours) and are age 21 or older. Participants in the Plans can contribute from one percent to 60 percent (30 percent for highly-compensated employees) of their annual salary subject to Internal Revenue Service and Puerto Rico Internal Revenue Code limitations. Upon satisfying all eligibility requirements, employees who have not otherwise elected will be automatically enrolled in their respective plan at a contribution rate of five percent for participants in the U.S. Plan or two percent for participants in the PR Plan as of July 31, 2013. Effective February 27, 2009, we suspended matching contributions until business conditions support the reinstatement of the matching contributions.

30

21. QUARTERLY RESULTS FROM CONTINUING OPERATIONS (UNAUDITED)

Unaudited quarterly results from continuing operations for the fiscal years ended July 31, 2013 and 2012 were as follows (in thousands, except per share data):

	Fiscal Year 2013
	For the Three Months Ended
	July 31, 2013			April 30, 2013			January 31, 2013		October 31, 2012
Revenues	$	417,089		$	442,708		$	670,752	$	357,468
Gross margin		221,582			232,847			339,651		190,335
(Loss) earnings from continuing operations (a)		(7,984	)		5,052			41,208		(28,265	)
(Loss) earnings per basic share from continuing operations		(0.25	)		0.16			1.27		(0.88	)
(Loss) earnings per diluted share from continuing operations		(0.25	)		0.13			1.02		(0.88	)
	Fiscal Year 2012
	For the Three Months Ended
	July 31, 2012			April 30, 2012			January 31, 2012		October 31, 2011
Revenues	$	406,963		$	445,170		$	663,762	$	350,983
Gross margin		209,885			228,193			335,512		187,674
(Loss) earnings from continuing operations (b)		(19,665	)		(4,440	)		28,930		(31,720	)
(Loss) earnings per basic share from continuing operations		(0.61	)		(0.14	)		0.90		(0.99	)
(Loss) earnings per diluted share from continuing operations		(0.61	)		(0.14	)		0.78		(0.99	)

(a) The earnings (loss) from continuing operations for the first and third quarters include gains totaling $1.9 million and $0.3 million, respectively, related to the De Beers settlement.

(b) The loss from continuing operations for the fourth quarter includes costs incurred related to the debt refinancing transactions totaling $5.0 million.

31

EX-99.3

Exhibit 99.3

ZALE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)

	Three Months Ended				Six Months Ended
	January 31,				January 31,
	2014		2013		2014		2013
Revenues	$	656,449	$	670,752	$	1,019,063	$	1,028,220
Cost of sales		308,830		331,101		477,656		498,234
Gross margin		347,619		339,651		541,407		529,986
Selling, general and administrative		280,148		279,064		488,306		485,529
Depreciation and amortization		7,461		8,388		15,122		17,034
Other charges (gains)		488		926		488		(847	)
Operating earnings		59,522		51,273		37,491		28,270
Interest expense		6,096		6,088		11,706		11,930
Earnings before income taxes		53,426		45,185		25,785		16,340
Income tax expense		2,640		3,977		2,305		3,396
Net earnings	$	50,786	$	41,208	$	23,480	$	12,944
Basic net earnings per common share:	$	1.54	$	1.27	$	0.72	$	0.40
Diluted net earnings per common share:	$	1.13	$	1.02	$	0.52	$	0.32
Weighted average number of common shares outstanding:
Basic		32,919		32,426		32,827		32,362
Diluted		45,022		40,305		44,837		40,470

See notes to consolidated financial statements.

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ZALE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

(Unaudited)

	Three Months Ended						Six Months Ended
	January 31,						January 31,
	2014			2013			2014			2013
Net earnings	$	50,786		$	41,208		$	23,480		$	12,944
Foreign currency translation adjustment		(12,763	)		(44	)		(15,996	)		470
Unrealized loss on interest rate swaps		(140	)		—			(2,676	)		—
Reclassification of loss on interest rate swaps to interest expense		65			—			85			—
Unrealized gain on securities, net		(128	)		76			(54	)		21
Comprehensive income	$	37,820		$	41,240		$	4,839		$	13,435

See notes to consolidated financial statements.

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ZALE CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

	January 31,			July 31,			January 31,
	2014			2013			2013
ASSETS
Current assets:
Cash and cash equivalents	$	23,251		$	17,060		$	18,516
Merchandise inventories		864,275			767,540			836,624
Other current assets		48,260			53,335			51,311
Total current assets		935,786			837,935			906,451
Property and equipment		666,000			675,705			688,558
Less accumulated depreciation and amortization		(562,286	)		(570,427	)		(575,646	)
Net property and equipment		103,714			105,278			112,912
Goodwill		92,376			98,372			100,756
Other assets		41,718			38,560			50,471
Deferred tax asset		107,110			107,110			96,888
Total assets	$	1,280,704		$	1,187,255		$	1,267,478
LIABILITIES AND STOCKHOLDERS’ INVESTMENT
Current liabilities:
Accounts payable and accrued liabilities	$	276,907		$	220,558		$	263,384
Deferred revenue		81,667			82,110			86,813
Deferred tax liability		107,479			107,016			97,233
Total current liabilities		466,053			409,684			447,430
Long-term debt		445,267			410,050			473,975
Deferred revenue – long-term		105,004			109,135			115,664
Other liabilities		72,307			73,057			36,504
Commitments and contingencies
Stockholders’ investment:
Common stock		488			488			488
Additional paid-in capital		150,459			155,625			158,422
Accumulated other comprehensive income		28,374			47,015			53,860
Accumulated earnings		458,621			435,140			438,072
		637,942			638,268			650,842
Treasury stock		(445,869	)		(452,939	)		(456,937	)
Total stockholders’ investment		192,073			185,329			193,905
Total liabilities and stockholders’ investment	$	1,280,704		$	1,187,255		$	1,267,478

See notes to consolidated financial statements.

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ZALE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Six Months Ended
	January 31,
	2014			2013
Cash Flows From Operating Activities:
Net earnings	$	23,480		$	12,944
Adjustments to reconcile net earnings to net cash used in operating activities:
Non-cash interest		1,454			1,452
Depreciation and amortization		15,122			17,034
Deferred taxes		352			614
Loss on disposition of property and equipment		690			632
Impairment of property and equipment		488			851
Stock-based compensation		2,261			1,742
Changes in operating assets and liabilities:
Merchandise inventories		(108,272	)		(94,676	)
Other current assets		3,696			(4,898	)
Other assets		536			1,192
Accounts payable and accrued liabilities		57,515			56,593
Deferred revenue		(2,258	)		(6,144	)
Other liabilities		(1,446	)		(110	)
Net cash used in operating activities		(6,382	)		(12,774	)
Cash Flows From Investing Activities:
Payments for property and equipment		(18,007	)		(12,667	)
Purchase of available-for-sale investments		(5,157	)		(1,674	)
Proceeds from sales of available-for-sale investments		959			465
Net cash used in investing activities		(22,205	)		(13,876	)
Cash Flows From Financing Activities:
Borrowings under revolving credit agreement		2,676,300			2,738,400
Payments on revolving credit agreement		(2,640,500	)		(2,717,500	)
Proceeds from exercise of stock options		311			56
Payments on capital lease obligations		(551	)		(489	)
Net cash provided by financing activities		35,560			20,467
Effect of exchange rate changes on cash		(782	)		96
Net change in cash and cash equivalents		6,191			(6,087	)
Cash and cash equivalents at beginning of period		17,060			24,603
Cash and cash equivalents at end of period	$	23,251		$	18,516

See notes to consolidated financial statements.

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ZALE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. BASIS OF PRESENTATION

References to the “Company,” “we,” “us,” and “our” in this Form 10-Q are references to Zale Corporation and its subsidiaries. We are, through our wholly owned subsidiaries, a leading specialty retailer of fine jewelry in North America. At January 31, 2014, we operated 1,037 specialty retail jewelry stores and 623 kiosks located primarily in shopping malls throughout the United States, Canada and Puerto Rico.

We report our operations under three segments: Fine Jewelry, Kiosk Jewelry and All Other. Fine Jewelry is comprised of our three core national brands, Zales Jewelers^®, Zales Outlet^® and Peoples Jewellers and our two regional brands, Gordon’s Jewelers^® and Mappins Jewellers^®. Each brand specializes in fine jewelry and watches, with merchandise and marketing emphasis focused on diamond products. Zales Jewelers^® is our national brand in the U.S. providing moderately priced jewelry to a broad range of guests. Zales Outlet^® operates in outlet malls and neighborhood power centers and capitalizes on Zale Jewelers’^® national marketing and brand recognition. Gordon’s Jewelers^® is a value-oriented regional jeweler. Peoples Jewellers^®, Canada’s largest fine jewelry retailer, provides guests with an affordable assortment and an accessible shopping experience. Mappins Jewellers^® offers Canadian guests a broad selection of merchandise from engagement rings to fashionable and contemporary fine jewelry.

Kiosk Jewelry operates under the brand names Piercing Pagoda^®, Plumb Gold™, and Silver and Gold Connection^® through mall-based kiosks and is focused on the opening price point guest. Kiosk Jewelry specializes in gold, silver and non-precious metal products that capitalize on the latest fashion trends.

All Other includes our insurance and reinsurance operations, which offer insurance coverage primarily to our private label credit card guests.

We also maintain a presence in the retail market through our ecommerce sites www.zales.com, www.zalesoutlet.com, www.gordonsjewelers.com, www.peoplesjewellers.com and www.pagoda.com.

We consolidate all of our U.S. operations into Zale Delaware, Inc. (“ZDel”), a wholly owned subsidiary of Zale Corporation. ZDel is the parent company for several subsidiaries, including three that are engaged primarily in providing credit insurance to our credit customers. We consolidate our Canadian retail operations into Zale Canada Holding, L.P., which is a wholly owned subsidiary of Zale Corporation. All significant intercompany transactions have been eliminated. The consolidated financial statements are unaudited and have been prepared by the Company in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In management’s opinion, all material adjustments (consisting of normal recurring accruals and adjustments) and disclosures necessary for a fair presentation have been made. Because of the seasonal nature of the retail business, operating results for interim periods are not necessarily indicative of the results that may be expected for the full year. The accompanying consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2013 filed with the Securities and Exchange Commission (“SEC”) on September 27, 2013.

Reclassification. Certain prior year amounts have been reclassified in the accompanying consolidated financial statements to conform to our fiscal year 2014 presentation.

- 5 -

2. FAIR VALUE MEASUREMENTS

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. In determining fair value, Accounting Standards Codification (“ASC”) 820, Fair Value Measurement, establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair values. These tiers include:

Level 1 –	Quoted prices for identical instruments in active markets;
Level 2 –	Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose significant inputs are observable; and
Level 3 –	Instruments whose significant inputs are unobservable.

Assets and Liabilities that are Measured at Fair Value on a Recurring Basis

The following tables include our assets and liabilities that are measured at fair value on a recurring basis (in thousands):

	Fair Value as of January 31, 2014
	Level 1		Level 2		Level 3
Assets
U.S. Treasury securities	$	14,306	$	—	$	—
U.S. government agency securities		—		2,074		—
Corporate bonds and notes		—		5,718		—
Corporate equity securities		2,706		—		—
	$	17,012	$	7,792	$	—
Liabilities
Interest rate swaps	$	—	$	2,591	$	—
	Fair Value as of January 31, 2013
	Level 1		Level 2		Level 3
Assets
U.S. Treasury securities	$	22,445	$	—	$	—
U.S. government agency securities		—		2,833		—
Corporate bonds and notes		—		868		—
Corporate equity securities		4,423		—		—
	$	26,868	$	3,701	$	—

Investments in U.S. Treasury securities and corporate equity securities are based on quoted market prices for identical instruments in active markets, and therefore were classified as a Level 1 measurement in the fair value hierarchy. Investments in U.S. government agency securities and corporate bonds and notes are based on quoted prices for similar instruments in active markets, and therefore were classified as a Level 2 measurement in the fair value hierarchy (see Note 3 for additional information related to our investments).

The fair value of our interest rate swaps is calculated using significant observable inputs including the present value of estimated future cash flows using interest rate curves, and therefore were classified as a Level 2 measurement in the fair value hierarchy (see Note 4 for additional information related to our interest rate swaps).

- 6 -

Assets that are Measured at Fair Value on a Nonrecurring Basis

Impairment losses related to store-level property and equipment are calculated using significant unobservable inputs including the present value of future cash flows expected to be generated using a risk-adjusted weighted average cost of capital of 14.0 percent to 15.5 percent, and therefore are classified as a Level 3 measurement in the fair value hierarchy. For the six months ended January 31, 2014, store-level property and equipment of $0.7 million was written down to their fair value of $0.2 million, resulting in an impairment charge of $0.5 million. For the six months ended January 31, 2013, store-level property and equipment of $1.0 million was written down to their fair value of $0.1 million, resulting in an impairment charge of $0.9 million.

At the end of the second quarter of fiscal year 2014, we completed our annual impairment testing of goodwill pursuant to ASC 350, Intangible-Goodwill and Other. Based on the test results, we concluded that no impairment was necessary for the $73.0 million of goodwill related to the Peoples Jewellers acquisition and the $19.4 million of goodwill related to the Piercing Pagoda acquisition. As of the date of the test, the fair value of the Peoples Jewellers and Piercing Pagoda reporting units would have to decline by more than 30 percent and 41 percent, respectively, to be considered for potential impairment. We calculated the estimated fair value of our reporting units using Level 3 inputs, including: (1) cash flow projections for five years; (2) terminal year growth rates of two percent based on estimates of long-term inflation expectations; and (3) discount rates of 14.0 percent to 15.5 percent based on a risk-adjusted weighted average cost of capital that reflects current market conditions. While we believe we have made reasonable estimates and assumptions to calculate the fair value of the reporting units, it is possible a material change could occur. If our actual results are not consistent with estimates and assumptions used to calculate fair value, we may be required to recognize goodwill impairments.

Other Financial Instruments

As cash and short-term cash investments, trade payables and certain other short-term financial instruments are all short-term in nature, their carrying amount approximates fair value. The outstanding principal of our revolving credit agreement and senior secured term loan approximates fair value as of January 31, 2014. The fair value of the revolving credit agreement and the senior secured term loan were based on estimates of current interest rates for similar debt, a Level 3 input.

3. INVESTMENTS

Investments in debt and equity securities held by our insurance subsidiaries are reported as other assets in the accompanying consolidated balance sheets. Investments are recorded at fair value based on quoted market prices for identical or similar securities. All investments are classified as available-for-sale.

Our investments consist of the following (in thousands):

	January 31, 2014				January 31, 2013
	Cost		Fair Value		Cost		Fair Value
U.S. Treasury securities	$	13,492	$	14,306	$	21,086	$	22,445
U.S. government agency securities		1,984		2,074		2,641		2,833
Corporate bonds and notes		5,616		5,718		773		868
Corporate equity securities		1,888		2,706		3,501		4,423
	$	22,980	$	24,804	$	28,001	$	30,569

At January 31, 2014 and 2013, the carrying value of investments included a net unrealized gain of $1.8 million and $2.6 million, respectively, which is included in accumulated other comprehensive income. Realized gains and losses on investments are determined on the specific identification basis. There were no material net realized gains or losses during the three and six months ended January 31, 2014 and 2013. Investments with a carrying value of $7.4 million were on deposit with various state insurance departments at both January 31, 2014 and 2013, respectively, as required by law.

- 7 -

Debt securities outstanding as of January 31, 2014 mature as follows (in thousands):

	Cost		Fair Value
Less than one year	$	3,272	$	3,299
Year two through year five		11,081		11,853
Year six through year ten		6,680		6,879
After ten years		59		67
	$	21,092	$	22,098

4. LONG–TERM DEBT

Long-term debt consists of the following (in thousands):

	January 31,
	2014		2013
Revolving credit agreement	$	363,000	$	390,700
Senior secured term loan		80,000		80,000
Capital lease obligations		2,267		3,275
	$	445,267	$	473,975

Amended and Restated Revolving Credit Agreement

On July 24, 2012, we amended and restated our revolving credit agreement (the “Amended Credit Agreement”) with Bank of America, N.A. and certain other lenders. The Amended Credit Agreement totals $665 million, including a $15 million first-in, last-out facility (the “FILO Facility”), and matures in July 2017. Borrowings under the Amended Credit Agreement (excluding the FILO Facility) are limited to a borrowing base equal to 90 percent of the appraised liquidation value of eligible inventory (less certain reserves that may be established under the agreement), plus 90 percent of eligible credit card receivables. Borrowings under the FILO Facility are limited to a borrowing base equal to the lesser of: (i) 2.5 percent of the appraised liquidation value of eligible inventory or (ii) $15 million. The Amended Credit Agreement is secured by a first priority security interest and lien on merchandise inventory, credit card receivables and certain other assets and a second priority security interest and lien on all other assets.

Based on the most recent inventory appraisal, the monthly borrowing rates calculated from the cost of eligible inventory range from 68 to 73 percent for the period of February through September 2014, 82 to 84 percent for the period of October through December 2014 and 71 percent for January 2015.

Borrowings under the Amended Credit Agreement (excluding the FILO Facility) bear interest at either: (i) LIBOR plus the applicable margin (ranging from 175 to 225 basis points) or (ii) the base rate (as defined in the Amended Credit Agreement) plus the applicable margin (ranging from 75 to 125 basis points). Borrowings under the FILO Facility bear interest at either: (i) LIBOR plus the applicable margin (ranging from 350 to 400 basis points) or (ii) the base rate plus the applicable margin (ranging from 250 to 300 basis points). We are also required to pay a quarterly unused commitment fee of 37.5 basis points based on the preceding quarter’s unused commitment.

If excess availability (as defined in the Amended Credit Agreement) falls below certain levels we will be required to maintain a minimum fixed charge coverage ratio of 1.0. Borrowing availability was approximately $259 million as of January 31, 2014, which exceeded the excess availability requirement by $197 million. The fixed charge coverage ratio was 2.47 as of January 31, 2014. The Amended Credit Agreement contains various other covenants including restrictions on the incurrence of certain indebtedness, payment of dividends, liens, investments, acquisitions and asset sales. As of January 31, 2014, we were in compliance with all covenants.

We incurred debt issuance costs associated with the revolving credit agreement totaling $12.1 million, which consisted of $5.6 million of costs related to the Amended Credit Agreement and $6.5 million of unamortized costs associated with the prior agreement. The debt issuance costs are included in other assets in the accompanying

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consolidated balance sheets and are amortized to interest expense on a straight-line basis over the five-year life of the agreement.

Interest Rate Swap Agreements

In September 2013, we executed interest rate swaps with Bank of America, N.A. to hedge the variability of cash flows resulting from fluctuations in the one-month LIBOR associated with our Amended Credit Agreement. The interest rate swaps replaced the one-month LIBOR with the fixed interest rates shown in the table below and are settled monthly. The swaps qualify as cash flow hedges and, to the extent effective, changes in their fair values are recorded in accumulated other comprehensive income in the consolidated balance sheet. The changes in fair values are reclassified from accumulated other comprehensive income to interest expense in the same period that the hedged items affect interest expense.

Interest rate swaps as of January 31, 2014 are as follows:

	Notional Amount		Fixed			Fair Value
Period	(in thousands)		Interest Rate			(in thousands)
October 2013 - July 2014	$	215,000		0.29	%	$	117
August 2014 - July 2016	$	215,000		1.19	%		2,474
						$	2,591

The change in the fair value of the interest rate swaps for the three and six months ended January 31, 2014 totaled $0.1 million and $2.7 million, respectively, and is included as an unrealized loss in other comprehensive income. There were no material amounts reclassified from accumulated other comprehensive income to interest expense during the three and six months ended January 31, 2014. The current portion of the fair value of the interest rate swaps totaled $1.0 million and is included in accounts payable and accrued liabilities in the accompanying consolidated balance sheet. The current portion represents the amount that is expected to be reclassified from other comprehensive income to interest expense over the next 12 months. The non-current portion of the fair value of the interest rate swaps totaled $1.6 million and is included in other liabilities in the accompanying consolidated balance sheet.

Amended and Restated Senior Secured Term Loan

On July 24, 2012, we amended and restated our senior secured term loan (the “Amended Term Loan”) with Z Investment Holdings, LLC, an affiliate of Golden Gate Capital. The Amended Term Loan totals $80.0 million, matures in July 2017 and is subject to a borrowing base equal to: (i) 107.5 percent of the appraised liquidation value of eligible inventory plus (ii) 100 percent of credit card receivables and an amount equal to the lesser of $40 million or 100 percent of the appraised liquidation value of intellectual property minus (iii) the borrowing base under the Amended Credit Agreement. In the event the outstanding principal under the Amended Term Loan exceeds the Amended Term Loan borrowing base, availability under the Amended Credit Agreement would be reduced by the excess. As of January 31, 2014, the outstanding principal under the Amended Term Loan did not exceed the borrowing base. The Amended Term Loan is secured by a second priority security interest on merchandise inventory and credit card receivables and a first priority security interest on substantially all other assets.

Borrowings under the Amended Term Loan bear interest at 11 percent payable on a quarterly basis. We may repay all or any portion of the Amended Term Loan with the following penalty prior to maturity: (i) the present value of the required interest payments that would have been made if the prepayment had not occurred during the first year; (ii) 4 percent during the second year; (iii) 3 percent during the third year; (iv) 2 percent during the fourth year and (v) no penalty in the fifth year. The Amended Credit Agreement restricts our ability to prepay the Amended Term Loan if the fixed charge coverage ratio is not equal to or greater than 1.0 after giving effect to the prepayment.

The Amended Term Loan includes various covenants which are consistent with the covenants in the Amended Credit Agreement, including restrictions on the incurrence of certain indebtedness, payment of dividends, liens, investments, acquisitions, asset sales and the requirement to maintain a minimum fixed charge coverage ratio of 1.0

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if excess availability thresholds under the Amended Credit Agreement are not maintained. As of January 31, 2014, we were in compliance with all covenants.

We incurred costs associated with the Amended Term Loan totaling $4.4 million, of which approximately $2 million was recorded in interest expense during the fourth quarter of fiscal year 2012. The remaining $2.4 million consists of debt issuance costs included in other assets in the accompanying consolidated balance sheet and are amortized to interest expense on a straight-line basis over the five-year life of the agreement.

Warrant and Registration Rights Agreement

In connection with the execution of the senior secured term loan in May 2010, we entered into a Warrant and Registration Rights Agreement (the “Warrant Agreement”) with Z Investment Holdings, LLC (“Z Investment”). Under the terms of the Warrant Agreement, Z Investment holds 11.1 million warrants (the “Warrants”) to purchase shares of our common stock, on a one-for-one basis, for an exercise price of $2.00 per share. The Warrants, which are currently exercisable and expire in May 2017, represented approximately 25 percent of our common stock on a fully diluted basis (including the shares issuable upon exercise of the Warrants and excluding certain out-of-the-money stock options) as of the date of the issuance. The number of shares and exercise price are subject to customary antidilution protection. The Warrant Agreement also entitles the holder to designate two, and in certain circumstances three, directors to our board.

The holders of the Warrants may, at their option, request that we register all or part of the common stock issuable under the Warrant Agreement for resale. In September 2013, Z Investment exercised their right to request that we register the common stock and on October 2, 2013 we filed a shelf registration statement on Form S-3 which has been declared effective by the SEC.

Capital Lease Obligations

We enter into capital leases related to vehicles for our field management. The vehicles are included in property and equipment in the accompanying consolidated balance sheets and are depreciated over a four-year life. Capital leases, net of accumulated depreciation, included in property and equipment as of January 31, 2014 and 2013 totaled $2.2 million and $3.2 million, respectively.

5. OTHER CHARGES (GAINS)

During the second quarter of fiscal years 2014 and 2013, we recorded charges related to the impairment of long-lived assets for underperforming stores, primarily in Fine Jewelry, totaling $0.5 million and $0.9 million, respectively. The impairment of long-lived assets is based on the amount that the carrying value exceeds the estimated fair value of the assets. The fair value is based on future cash flow projections over the remaining lease term using a discount rate that we believe is commensurate with the risk inherent in our current business model. If actual results are not consistent with our cash flow projections, we may be required to record additional impairments.

Beginning in June 2004, various class-action lawsuits were filed alleging that the De Beers group violated U.S. state and federal antitrust, consumer protection and unjust enrichment laws. During the six months ended January 31, 2013, we received proceeds totaling $1.9 million as a result of a settlement reached in the lawsuit.

6. EARNINGS PER COMMON SHARE

Basic earnings per common share is computed by dividing net earnings by the weighted-average number of common shares outstanding for the reporting period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For the calculation of diluted earnings per share, the basic weighted-average number of shares is increased by the dilutive effect of stock options, restricted share awards and warrants issued in connection with the senior secured term loan determined using the Treasury Stock method.

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The following table presents a reconciliation of the diluted weighted average shares (in thousands):

	Three Months Ended				Six Months Ended
	January 31,				January 31,
	2014		2013		2014		2013
Basic weighted average shares		32,919		32,426		32,827		32,362
Effect of potential dilutive securities:
Warrants		9,597		6,759		9,495		6,921
Stock options and restricted share awards		2,506		1,120		2,515		1,187
Diluted weighted average shares		45,022		40,305		44,837		40,470

The calculation of diluted weighted average shares excludes the impact of 0.9 million and 1.8 million antidilutive stock options for the three and six months ended January 31, 2014 and 2013.

7. ACCUMULATED OTHER COMPREHENSIVE INCOME

The following table includes detail regarding changes in the composition of accumulated other comprehensive income (in thousands):

	Three Months Ended						Six Months Ended
	January 31,						January 31,
	2014			2013			2014			2013
Beginning of period	$	41,340		$	53,828		$	47,015		$	53,369
Foreign currency translation adjustment		(12,763	)		(44	)		(15,996	)		470
Unrealized loss on interest rate swaps		(140	)		—			(2,676	)		—
Reclassification of loss on interest rate swaps to interest expense		65			—			85			—
Unrealized gain (loss) on securities, net		(128	)		76			(54	)		21
End of period	$	28,374		$	53,860		$	28,374		$	53,860

8. INCOME TAXES

We are required to assess the available positive and negative evidence to estimate if sufficient future income will be generated to utilize deferred tax assets. A significant piece of negative evidence that we consider is cumulative losses (generally defined as losses before income taxes) incurred over the most recent three-year period. Such evidence limits our ability to consider other subjective evidence such as our projections for future growth. As of January 31, 2014 and 2013, cumulative losses were incurred over the applicable three-year period.

Our valuation allowances totaled $82.7 million and $92.7 million as of January 31, 2014 and 2013, respectively. The valuation allowances were established due to the uncertainty of our ability to utilize certain federal, state and foreign net operating loss carryforwards in the future. The amount of the deferred tax asset considered realizable could be adjusted if negative evidence, such as three-year cumulative losses, no longer exists and additional consideration is given to our growth projections.

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9. SEGMENTS

We report our operations under three business segments: Fine Jewelry, Kiosk Jewelry, and All Other (See Note 1). All corresponding items of segment information in prior periods have been presented consistently. Management’s expectation is that overall economics of each of our major brands within each reportable segment will be similar over time.

We use earnings before unallocated corporate overhead, interest and taxes but include an internal charge for inventory carrying cost to evaluate segment profitability. Unallocated costs before income taxes include corporate employee-related costs, administrative costs, information technology costs, corporate facilities costs and depreciation and amortization. Income tax information by segment is not included as taxes are calculated at a company-wide level and not allocated to each segment.

	Three Months Ended						Six Months Ended
	January 31,						January 31,
Selected Financial Data by Segment	2014			2013			2014			2013
	(amounts in thousands)
Revenues:
Fine Jewelry (a)	$	580,821		$	590,131		$	894,519		$	897,091
Kiosk		72,801			77,905			119,000			125,723
All Other		2,827			2,716			5,544			5,406
Total revenues	$	656,449		$	670,752		$	1,019,063		$	1,028,220
Depreciation and amortization:
Fine Jewelry	$	4,954		$	5,393		$	10,013		$	10,914
Kiosk		516			689			1,093			1,428
All Other		—			—			—			—
Unallocated		1,991			2,306			4,016			4,692
Total depreciation and amortization	$	7,461		$	8,388		$	15,122		$	17,034
Operating earnings:
Fine Jewelry	$	58,273		$	47,712		$	46,272		$	31,010
Kiosk		10,622			10,513			8,067			8,764
All Other		1,309			1,094			2,501			1,906
Unallocated (b)		(10,682	)		(8,046	)		(19,349	)		(13,410	)
Total operating earnings	$	59,522		$	51,273		$	37,491		$	28,270

(a) Includes $111.2 million and $120.4 million for the three months ended January 31, 2014 and 2013, respectively, and $174.1 million and $183.4 million for the six months ended January 31, 2014 and 2013, respectively, related to foreign operations.

(b) Includes credits of $17.1 million and $16.9 million for the three months ended January 31, 2014 and 2013, respectively, and $32.9 million and $32.0 million for the six months ended January 31, 2014 and 2013, respectively, to offset internal carrying costs charged to the segments. The six months ended January 31, 2013 also includes a gain totaling $1.9 million related to the De Beers settlement.

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10. CONTINGENCIES

The Company is a defendant in three purported class action lawsuits, Tessa Hodge v. Zale Delaware, Inc., d/b/a Piercing Pagoda which was filed on April 23, 2013 in the Superior Court of the State of California, County of San Bernardino, Naomi Tapia v. Zale which was filed on July 3, 2013 in the U.S. District Court, Southern District of California, and Melissa Roberts v. Zale Delaware, Inc. which was filed on October 7, 2013 in the Superior Court of the State of California, County of Los Angeles. All three cases include allegations that the Company violated various wage and hour labor laws. Relief is sought on behalf of current and former Piercing Pagoda and Zales employees. The lawsuits seek to recover damages, penalties and attorneys’ fees as a result of the alleged violations. The Company is investigating the underlying allegations and intends to vigorously defend its position against them. The Company cannot reasonably estimate the potential loss or range of loss, if any, for the lawsuits.

The Company and its directors have been named as defendants in four purported shareholder class action lawsuits filed in the Court of Chancery of the State of Delaware: Andrew Breyer v. Zale Corporation, et al. filed on February 24, 2014, Marc Stein v. Zale Corporation, et al. and Ravinder Singh v. Zale Corporation, et al. each filed on March 3, 2014 and Mary Smart v. Zale Corporation, et al. filed on March 6, 2014. Each lawsuit alleges that, in connection with the proposed transaction between the Company and Signet Jewelers Limited, entered into on February 19, 2014, the Company’s directors breached their fiduciary duties to the Company’s shareholders and that the Company, Signet Jewelers Limited and Carat Merger Sub, Inc. aided and abetted such breaches. Each lawsuit seeks injunctive relief, rescission in the event the merger is consummated, monetary damages and attorneys’ and other fees and costs. The Company and its directors believe that the claims in the lawsuits are without merit, and intend to vigorously defend each pending lawsuit. The Company cannot reasonably estimate the potential loss or range of loss, if any, for the lawsuits.

We are involved in legal and governmental proceedings as part of the normal course of our business. Reserves have been established based on management’s best estimates of our potential liability in these matters. These estimates have been developed in consultation with internal and external counsel and are based on a combination of litigation and settlement strategies. Management believes that such litigation and claims will be resolved without material effect on our financial position or results of operations.

11. DEFERRED REVENUE

We offer our Fine Jewelry guests lifetime warranties on certain products that cover sizing and breakage with an option to purchase theft protection for a two-year period. Revenues related to lifetime warranty sales are recognized in proportion to when the expected costs will be incurred, which we estimate to be over an eight-year period. A significant change in estimates related to the time period or pattern in which warranty-related costs are expected to be incurred could adversely impact our revenues and earnings. Revenues related to the optional theft protection are recognized over the two-year contract period on a straight-line basis. We also offer our Fine Jewelry guests a two-year watch warranty and our Fine Jewelry and Kiosk Jewelry guests a one-year warranty that covers breakage. The revenue from the two-year watch warranty and one-year breakage warranty is recognized on a straight-line basis over the respective contract terms.

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The change in deferred revenue associated with the sale of warranties is as follows (in thousands):

	Three Months Ended						Six Months Ended
	January 31,						January 31,
	2014			2013			2014			2013
Deferred revenue, beginning of period	$	183,224		$	199,239		$	191,245		$	208,516
Warranties sold (a)		43,907			44,569			69,841			69,549
Revenue recognized		(40,460	)		(41,331	)		(74,415	)		(75,588	)
Deferred revenue, end of period	$	186,671		$	202,477		$	186,671		$	202,477

(a) Warranty sales for the three and six months ended January 31, 2014 include approximately $1.8 million and $2.3 million, respectively, related to the depreciation in the Canadian currency rate on the beginning of the period deferred revenue balance. The change in the Canadian currency rate did not have a significant impact on the beginning of the period deferred revenue balance for the three and six months ended January 31, 2013.

Gross margin associated with warranties totaled $32.7 million and $34.2 million, respectively, during the three months ended January 31, 2014 and 2013 and $60.1 million and $62.3 million, respectively, during the six months ended January 31, 2014 and 2013.

12. SUBSEQUENT EVENTS

Merger Agreement

On February 19, 2014, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Signet Jewelers Limited, a Bermuda corporation (“Signet”), and Carat Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of Signet (“Merger Sub”). The Merger Agreement provides for, subject to the satisfaction or waiver of specified conditions, the acquisition of the Company by Signet at a price of $21 per share in cash. Subject to the terms and conditions of the Merger Agreement, Merger Sub will be merged with and into the Company (the “Merger”), with the Company surviving the Merger as a wholly owned subsidiary of Signet. Consummation of the Merger is subject to various customary conditions set forth in the Merger Agreement, including, among other things, the adoption of the Merger Agreement by the Company’s stockholders, the absence of laws or orders prohibiting or restraining the Merger and the receipt of certain required antitrust approvals. We cannot predict with certainty whether and when any of these conditions will be satisfied. For additional information regarding the Merger and the Merger Agreement, please refer to our Current Report on Form 8-K filed with the SEC on February 19, 2014 (the “February 19^th 8-K”). The foregoing description of the Merger Agreement does not purport to be complete and is qualified in its entirety by reference to the Merger Agreement, a copy of which is attached as Exhibit 2.1 to the February 19^th 8-K.

Voting and Support Agreement

On February 19, 2014, and in connection with the execution of the Merger Agreement, Z Investment entered into a Voting and Support Agreement with Signet and the Company (the “Voting Agreement”). Pursuant to the Voting Agreement, Z Investment has agreed, among other things, to exercise its Warrants (see Note 4) and to vote, or cause to be voted, the shares of the Company’s common stock issued upon such exercise in favor of the adoption of the Merger Agreement. The foregoing description of the Voting Agreement does not purport to be complete and is qualified in its entirety by reference to the Voting Agreement, a copy of which is attached as Exhibit 10.1 to the February 19^th 8-K.

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EX-99.4

Exhibit 99.4

UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION

On February 19, 2014, Signet Jewelers Limited (“Signet”) entered into a definitive agreement to acquire Zale Corporation (“Zale”) (the “Acquisition”). Under the terms of the agreement, Zale shareholders will receive $21 per share in cash for each outstanding share of common stock, including shares issued for the assumed cashless exercise of outstanding warrants and the vesting, upon consummation of the Acquisition, of outstanding Zale restricted share awards subject to certain conditions. In addition, each outstanding stock option will be converted to an amount in cash equal to the excess (if any) of the merger consideration of $21 per share multiplied by the number of shares of common stock underlying such stock option over the aggregate exercise price payable upon exercise of such stock option immediately prior to the effective time of the Acquisition. Signet intends to finance the Acquisition, including payment of related fees and expenses, as well as repayment of Zale’s outstanding borrowings ($443.0 million as of January 31, 2014), with $600.0 million in an asset-backed securitization facility, $400.0 million in senior unsecured notes and $400.0 million in a senior unsecured term loan facility (the “Financings”).

The following unaudited pro forma condensed combined financial information is based on and derived from the separate historical financial statements of Signet and Zale after giving effect to the Acquisition and the Financings and gives effect to the assumptions and preliminary pro forma adjustments described in the accompanying notes to the unaudited pro forma condensed combined financial statements. The Acquisition and the Financings are together referred to as the “Transactions”. The unaudited pro forma condensed combined balance sheet gives effect to the Transactions as if they had occurred on February 1, 2014. The unaudited pro forma condensed combined income statement gives effect to the Transactions as if they had occurred on February 3, 2013. The historical consolidated financial information has been adjusted to give effect to pro forma events that are directly attributable to the Transactions and that are factually supportable. The unaudited pro forma condensed combined income statement has also been adjusted to only give effect to pro forma events that are expected to have a continuing impact on the combined results.

The unaudited pro forma condensed combined financial information giving effect to the Transaction was prepared using the acquisition method of accounting. Accordingly, consideration given by Signet to complete the Acquisition will be allocated to the assets and liabilities of Zale based upon their estimated fair values as of the date of completion of the Acquisition. Any excess of the consideration over the fair value of assets acquired and liabilities assumed is allocated to goodwill. The unaudited pro forma condensed combined financial statements also reflect (i) reclassifications to conform the historical financial statement presentation of Zale to that of Signet; and (ii) adjustments to conform Zale’s accounting policies to those of Signet. Signet will continue to assess Zale’s accounting policies for any additional adjustments that may be required to conform Zale’s accounting policies to those of Signet, other than those noted in the pro forma adjustments described below.

Signet has not completed the detailed valuation studies necessary to arrive at the required estimates of the fair value of the Zale assets to be acquired and the liabilities to be assumed and the related allocations of consideration transferred, nor has it identified all adjustments necessary to conform Zale’s accounting policies to Signet’s accounting policies. A final determination of the fair value of Zale’s assets and liabilities will be based on the actual net tangible and intangible assets and liabilities of Zale that exist as of the date of completion of the Acquisition and, therefore, cannot be made prior to the completion of the Acquisition. Accordingly, the unaudited pro forma adjustments are preliminary and are subject to further adjustments as additional information becomes available and as additional analyses are performed, and such further adjustments may be material. The preliminary unaudited pro forma adjustments have been made solely for the purpose of providing the unaudited pro forma condensed combined financial information presented below. Signet estimated the fair value of Zale’s assets and liabilities based on discussions with Zale’s management, preliminary valuation studies, due diligence and information presented in public filings. There can be no assurance that such finalization will not result in material changes.

The unaudited pro forma condensed combined financial information is provided for informational purposes only. The unaudited pro forma condensed combined financial information is not necessarily, and should not be assumed to be, an indication of the results that would have been achieved had the Transactions been completed as of the dates indicated or that may be achieved in the future and should not be taken as representative of future consolidated results of operations or financial condition of Signet. The unaudited pro forma condensed combined income statement does not reflect any non-recurring charges directly related to the Transactions that have already been incurred or will be incurred upon closing of the Transactions. Furthermore, no effect has been given in the unaudited pro forma condensed combined income statement for synergies and potential cost savings that may be realized through the combination of the two companies or the costs that may be incurred in integrating their operations.

The unaudited pro forma condensed combined financial information should be read in conjunction with Signet’s historical financial statements as of and for the year ended February 1, 2014, including the notes thereto, and Zale’s historical financial statements as of and for the year ended July 31, 2013 and as of and for the six-month period ended January 31, 2014, in each case including the notes thereto, attached as Exhibits 99.1, 99.2 and 99.3, respectively to the 8-K into which this Exhibit is incorporated by reference.

1

UNAUDITED PRO FORMA CONDENSED COMBINED

BALANCE SHEET AS OF FEBRUARY 1, 2014

(In millions)

	Historical Signet Jewelers Limited			Historical Zale Corporation Reclassified (See Note 2)			Adjustments for the Acquisition			Note	Adjustments for the Financings			Note	Pro Forma Combined
Assets
Current assets:
Cash and cash equivalents	$	247.6		$	23.3		$	(1,453.2	)	(3a)(3b) (3c)(3d)(3e)	$	1,382.0		(3o)(3p)	$	199.7
Accounts receivable, net		1,374.0			—			—				—				1,374.0
Other receivables		51.5			6.2			—				—				57.7
Other current assets		87.0			29.5			—				3.2		(3p)		119.7
Deferred tax assets		3.0			3.2			(6.2	)	(3l)		—				—
Income taxes		6.5			6.3			—				—				12.8
Inventories		1,488.0			867.3			89.5		(3g)		—				2,444.8
Total current assets		3,257.6			935.8			(1,369.9	)			1,385.2				4,208.7
Non-current assets:
Property, plant and equipment, net		487.6			103.7			—				—				591.3
Goodwill		26.8			92.4			373.2		(3f)		—				492.4
Intangible assets, net		—			—			450.0		(3h)		—				450.0
Other assets		87.2			41.7			(13.2	)	(3k)		10.6		(3p)		126.3
Deferred tax assets		113.7			107.1			34.2		(3l)(3m)		—				255.0
Retirement benefit asset		56.3			—			—				—				56.3
Total assets	$	4,029.2		$	1,280.7		$	(525.7	)		$	1,395.8			$	6,180.0
Liabilities and Shareholders’ equity
Current liabilities:
Loans and overdrafts	$	19.3		$	57.0		$	—			$	20.0		(3o)	$	96.3
Accounts payable		162.9			129.0			—				—				291.9
Accrued expenses and other current liabilities		328.5			90.9			19.0		(3j)		—				438.4
Deferred revenue		173.0			81.7			(39.5	)	(3i)		—				215.2
Deferred tax liabilities		113.1			107.5			36.2		(3l)		—				256.8
Income taxes		103.9			—			(5.1	)			(1.6	)			97.2
Total current liabilities		900.7			466.1			10.6				18.4				1,395.8
Non-current liabilities:
Long-term debt		—			445.2			(443.0	)	(3d)		1,380.0		(3o)		1,382.2
Other liabilities		121.7			66.9			0.7		(3j)		—				189.3
Deferred revenue		443.7			105.0			(45.2	)	(3i)		—				503.5
Deferred tax liabilities		—			5.4			168.2		(3l)		—				173.6
Total liabilities		1,466.1			1,088.6			(308.7	)			1,398.4				3,644.4
Commitments and contingencies
Shareholders’ equity:
Common shares at par value		15.7			0.5			(0.5	)	(3n)		—				15.7
Additional paid-in capital		258.8			150.5			(150.5	)	(3n)		—				258.8
Other reserves		235.2			—			—				—				235.2
Treasury shares at cost		(346.2	)		(445.9	)		445.9		(3n)		—				(346.2	)
Retained earnings		2,578.1			458.6			(483.5	)	(3e)(3n)		(2.6	)	(3p)		2,550.6
Accumulated other comprehensive income (loss)		(178.5	)		28.4			(28.4	)	(3n)		—				(178.5	)
Total shareholders’ equity		2,563.1			192.1			(217.0	)			(2.6	)			2,535.6
Total liabilities and shareholders’ equity	$	4,029.2		$	1,280.7		$	(525.7	)		$	1,395.8			$	6,180.0

See the accompanying notes to the unaudited pro forma condensed combined financial information.

2

UNAUDITED PRO FORMA CONDENSED COMBINED INCOME STATEMENT

FOR THE 52 WEEK PERIOD ENDED FEBRUARY 1, 2014

(In millions, except per share amounts)

	Historical Signet Jewelers Limited			Historical Zale Corporation Reclassified (See Note 2)			Adjustments for the Acquisition			Note	Adjustments for the Financings			Note	Pro Forma
Sales	$	4,209.2		$	1,878.9		$	(35.1	)	(4a)	$	—			$	6,053.0
Cost of sales		(2,628.7	)		(1,256.5	)		(6.7	)	(4b)		—				(3,891.9	)
Gross margin		1,580.5			622.4			(41.8	)			—				2,161.1
Selling, general and administrative expenses		(1,196.7	)		(576.3	)		25.5		(4c)		—				(1,747.5	)
Other operating income, net		186.7			0.2			—				—				186.9
Operating income		570.5			46.3			(16.3	)			—				600.5
Interest expense, net		(4.0	)		(24.9	)		23.2		(4d)		(39.6	)	(4d)		(45.3	)
Income before income taxes		566.5			21.4			6.9				(39.6	)			555.2
Income taxes		(198.5	)		(0.8	)		(2.7	)	(4e)		15.2		(4e)		(186.8	)
Net Income	$	368.0		$	20.6		$	4.2			$	(24.4	)		$	368.4
Earnings per share: basic	$	4.59													$	4.59
diluted	$	4.56													$	4.57
Weighted average common shares outstanding:            basic		80.2														80.2
diluted		80.7														80.7

See the accompanying notes to the unaudited pro forma condensed combined financial information.

3

NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION

1. Description of Transactions

The Acquisition

On February 19, 2014, Signet, Carat Merger Sub and Zale entered into the merger agreement pursuant to which, through a series of transactions, Zale will become a wholly owned subsidiary of Signet. Upon consummation of the Acquisition, Carat Merger Sub, will merge with and into Zale, the separate corporate existence of Carat Merger Sub will cease and Zale will continue as the surviving corporation as a wholly-owned indirect subsidiary of Signet. Pursuant to the merger agreement, Zale shareholders will receive $21 per share in cash for each outstanding share of common stock, including shares issued for the assumed cashless exercise of outstanding warrants and the vesting upon consummation of the Acquisition of outstanding Zale restricted share awards subject to certain conditions. In addition, each outstanding stock option will be converted to an amount in cash equal to the excess (if any) of the merger consideration of $21 per share multiplied by the number of shares of common stock underlying such stock option over the aggregate exercise price payable upon exercise of such stock option immediately prior to the effective time of the Acquisition.

Completion of the Acquisition is subject to various customary conditions.

The Financings

Signet expects to enter into a senior unsecured term loan facility of $400.0 million, an asset-backed securitization facility of $600.0 million, and senior unsecured notes of $400.0 million. The expected proceeds from these proposed borrowings, together with cash on hand, will be used to pay down Zale’s existing debt, finance the Acquisition and to pay fees, costs and expenses related thereto. In conjunction with the senior unsecured term loan facility, Signet also expects to amend and restate its existing $400.0 million revolving credit facility to, among other things, extend the maturity thereof. If the timing of the financing transactions differs from our expectations, Signet has also obtained a commitment for an $800.0 million bridge loan facility to utilize as necessary. The commitment on this bridge loan facility will be terminated upon the successful raising of the asset-backed securitization facility and senior unsecured notes.

The senior unsecured term loan facility is expected to have a term of five years and to require minimum principal and interest payments to be made on a quarterly basis with the balance due at maturity. Interest on the senior unsecured term loan facility will accrue, at Signet’s option, at either a base rate or an adjusted LIBOR, in each case plus an applicable margin rate based on Signet’s “Fixed Charge Coverage Ratio” as defined in the underlying agreement. The corresponding revolving credit facility also has a term of five years with interest accruing, at Signet’s option, at either a base rate or an adjusted LIBOR, in each case plus an applicable margin rate based on Signet’s “Fixed Charge Coverage Ratio” as defined in the underlying agreement.

Interest on the senior unsecured notes is expected to be payable on a semiannual basis with the outstanding principal balance and any unpaid interest due at maturity.

The asset-backed securitization facility is expected to have a term of two years. Interest is expected to be payable on a monthly basis with the outstanding principal balance and any unpaid interest due at maturity.

Based on current levels of base interest rates for each of the financing transactions and an assumed credit-adjusted margin for Signet, interest on the Financings is assumed to accrue at a weighted average rate per annum of 2.60%.

2. Reconciliation of Zale’s Historical Financial Information

Balance sheet:

The following table reflects adjustments to conform the presentation of Zale’s historical balance sheet as of January 31, 2014 to align to Signet’s historical balance sheet presentation:

4

(in millions)	Historical Zale Corporation As Reported		Reclassifications to conform with Signet presentation			Note	Historical Zale Corporation Reclassified
Assets
Current assets:
Cash and cash equivalents	$	23.3	$	—			$	23.3
Other receivables		—		6.2		(i)		6.2
Other current assets		48.2		(18.7	)	(i)(ii)		29.5
Deferred tax assets		—		3.2		(i)		3.2
Income taxes		—		6.3		(i)		6.3
Inventories		864.3		3.0		(ii)		867.3
Total current assets		935.8		—				935.8
Non-current assets:
Property, plant and equipment, net		103.7		—				103.7
Goodwill		92.4		—				92.4
Other assets		41.7		—				41.7
Deferred tax assets		107.1		—				107.1
Total assets	$	1,280.7	$	—			$	1,280.7
Liabilities and shareholders’ equity
Current liabilities:
Loans and overdrafts	$	—	$	57.0		(iii)	$	57.0
Accounts payable		—		129.0		(iii)		129.0
Accounts payable and accrued liabilities		276.9		(276.9	)	(iii)		—
Accrued expenses and other current liabilities		—		90.9		(iii)		90.9
Deferred revenue		81.7		—				81.7
Deferred tax liabilities		107.5		—				107.5
Total current liabilities		466.1		—				466.1
Non-current liabilities:
Long-term debt		445.2		—				445.2
Other liabilities		72.3		(5.4	)	(iv)		66.9
Deferred revenue		105.0		—				105.0
Deferred tax liabilities		—		5.4		(iv)		5.4
Total liabilities		1,088.6		—				1,088.6
Total shareholders’ equity		192.1		—				192.1
Total liabilities and shareholders’ equity	$	1,280.7	$	—			$	1,280.7

The reclassification adjustments reflected above are as follows:

(i) to separately classify other receivables of $6.2 million, deferred tax assets of $3.2 million and income tax assets of $6.3 million that were historically reported within other current assets;

(ii) to reclassify supply inventories of $3.0 million from other current assets to inventories;

(iii) to separately classify accounts payable of $129.0 million, loans and overdrafts of $57.0 million, and accrued expenses and other current liabilities of $90.9 that were historically reported within accounts payable and accrued liabilities;

(iv) to separately classify deferred tax liabilities of $5.4 million that were historically reported within other liabilities.

5

Income Statement:

A reconciliation of Zale’s historical statement of operations for the twelve months ended January 31, 2014 is presented below. As Zale’s year-end date was July 31, 2013, which differs from Signet’s February 1, 2014 year-end date by more than 93 days, Zale’s statement of operations was brought up to within 93 days of Signet’s most recently completed year end by deducting the unaudited consolidated interim statement of operations of Zale for the six months ended January 31, 2013 and adding the unaudited consolidated interim statement of operations of Zale for the six months ended January 31, 2014 to the audited consolidated statement of operations of Zale for the fiscal year ended July 31, 2013. Any differences between Zale’s year-end date of January 31, 2014 and Signet’s year-end date of February 1, 2014 are considered insignificant. The following table also reflects reclassification to conform the presentation of Zale’s historical statement of operations to align to Signet’s historical income statement presentation.

	Zale’s Historical As Reported
(in millions)	Year ended July 31, 2013			Less: Six month period ended January 31, 2013			Add: Six month period ended January 31, 2014			Twelve months ended January 31, 2014			Reclassifications to conform with Signet presentation			Note	Twelve months ended January 31, 2014 Reclassified
Sales	$	1,888.0		$	1,028.2		$	1,019.1		$	1,878.9		$	—			$	1,878.9
Cost of sales		(903.6	)		(498.2	)		(477.7	)		(883.1	)		(373.4	)	(i)(iii)		(1,256.5	)
Gross margin		984.4			530.0			541.4			995.8			(373.4	)			622.4
Selling, general and administrative expenses		(950.0	)		(502.5	)		(503.4	)		(950.9	)		374.6		(i)(ii)		(576.3	)
Other operating income (expense), net		0.7			0.8			(0.5	)		(0.6	)		0.8		(iii)		0.2
Operating income		35.1			28.3			37.5			44.3			2.0				46.3
Interest expense, net		(23.2	)		(12.0	)		(11.7	)		(22.9	)		(2.0	)	(ii)		(24.9	)
Income before income taxes		11.9			16.3			25.8			21.4			—				21.4
Income taxes		(1.9	)		(3.4	)		(2.3	)		(0.8	)		—				(0.8	)
Net income	$	10.0		$	12.9		$	23.5		$	20.6		$	—			$	20.6

(i) reclassification of $372.6 million related to certain costs incurred in the processing and distribution of merchandise, store operating and store occupancy costs (including utilities, rent, real estate taxes, common area maintenance charges and depreciation) to cost of sales from selling, general and administrative expenses to conform Zale’s presentation of these costs in accordance with Signet’s presentation.

(ii) reclassification of $2.0 million related to costs associated with outstanding financing arrangements from selling, general and administrative expenses to interest expense, net to conform Zale’s presentation of these costs in accordance with Signet’s presentation policy.

(iii) reclassification of $0.8 million related to store impairment charges from other operating income (expense), net to cost of sales to conform Zale’s presentation of these costs in accordance with Signet’s presentation policy.

3. Unaudited Pro Forma Condensed Combined Balance Sheet Adjustments

Under the acquisition method of accounting, the identifiable assets acquired and liabilities assumed of Zale are recorded at acquisition date fair values. The pro forma adjustments are preliminary and based on estimates of fair values and useful lives and have been prepared to illustrate the estimated effects of the Transactions. The acquisition date fair values are dependent upon certain valuation and other studies conducted to date; however, not all such analysis has been completed. Accordingly, the pro forma acquisition date fair values are subject to further adjustment as additional information becomes available and analyses completed. There can be no assurance that these additional analyses and final valuations will not result in significant changes to the estimates and fair values presented below.

The following is a preliminary estimate of the fair value of assets acquired and the liabilities assumed by Signet as a result of the Transactions as if the acquisition date was February 1, 2014:

6

Calculation of consideration

	Note			Amount
Cash consideration paid to Zale shareholders ($21 per share)		(3a	)	$	694.2
Cash consideration paid for Zale warrants		(3b	)		210.2
Cash consideration paid for Zale stock options, restricted share awards and long term incentive plan awards		(3c	)		75.8
					980.2
Cash paid to extinguish Zale revolving credit agreement as of January 31, 2014		(3d	)		363.0
Cash paid to extinguish Zale senior secured term loan as of January 31, 2014		(3d	)		80.0
					443.0
Total consideration transferred				$	1,423.2

Recognized amounts of identifiable assets acquired and liabilities assumed

	Amount
Net book value of net assets acquired as of January 31, 2014	$	192.1
Elimination of Zale’s revolving credit agreement and senior secured term loan		443.0
Elimination of historical Zale goodwill		(92.4	)
Adjusted net book value of assets to be acquired as of January 31, 2014		542.7
Fair value adjustments:
Intangible assets		450.0
Inventory (including fair value step-up and LIFO to FIFO adjustment)		89.5
Deferred revenue		84.7
Deferred rent		27.9
Unfavorable contracts		(44.0	)
Other fair value adjustments		(16.8	)
Deferred tax impact of preliminary acquisition adjustments		(176.4	)
Fair value of assets acquired and liabilities assumed		957.6
Goodwill		465.6
Total consideration transferred	$	1,423.2

(a) Reflects cash payments to Zale shareholders in the amount of $21.00 per outstanding Zale share based on 33,057,134 Zale shares outstanding as of January 31, 2014.

(b) Reflects net settlement of 11.1 million warrants with a $2.00 exercise price held by Z Investment Holdings, LLC.

(c) Zale has historically issued share-based compensation in the form of restricted share awards and options. At January 31, 2014, a total of 1,508,671 restricted share awards and 3,084,483 options (net 1,861,762 options assuming cashless exercise) were vested or expected to immediately vest upon consummation of the Acquisition. Zale also maintained a cash performance based long-term incentive plan for certain members of management which will immediately vest upon consummation of the Acquisition resulting in a $5.0 million payment.

(d) Represents the extinguishment of Zale’s existing revolving credit agreement and senior secured term loans of $443.0 million as of January 31, 2014.

(e) To record a preliminary estimate of Acquisition-related transaction costs of $30.0 million ($24.9 million net of tax). As Acquisition-related transaction costs are not expected to have a continuing impact on the combined company’s results, an adjustment is not reflected in the pro forma condensed combined income statement. However, the amount was recorded as a reduction of cash with a corresponding decrease in retained earnings. Additionally, acquisition-related costs, including legal, accounting, valuation, employee retention and other costs, will continue to be incurred up to and subsequent to the date of consummation of the Acquisition and will be recognized in the income statement.

(f) Prior to the Transactions, Zale’s historical balance sheet included $92.4 million of goodwill. As a result of the Acquisition, goodwill is calculated as the difference between the fair value of consideration expected to be transferred and the fair values assigned to the identifiable tangible and intangible assets acquired and liabilities assumed. As noted above, for the purposes of the unaudited pro forma condensed combined balance sheet, goodwill arising as a result of the Acquisition is $465.6 million which results in a pro forma adjustment of $373.2 million to goodwill.

7

The accounting for the Acquisition is dependent upon certain valuations and other studies that have yet to commence or progress to a stage where there is sufficient information for definitive measurements. Areas in which adjustments have not yet been reflected include, but are not limited to, the valuation of property, plant and equipment as Signet does not have sufficient information as to the specific types, nature, age or condition of Zale’s fixed assets, and favorable and/or unfavorable contractual arrangements (including leases) and certain other intangible assets. Accordingly, Signet will continue to refine its identification and initial measurement of assets to be acquired and the liabilities to be assumed as further information becomes available, and such adjustments could be material to the amounts presented in these unaudited pro forma condensed combined financial statements.

(g) Reflects the acquisition accounting adjustment to recognize the additional value in merchandise inventories recorded at fair value of $30.3 million and an adjustment of $59.2 million to conform the presentation of Zale’s merchandise inventory amounts to the first-in, first-out (“FIFO”) valuation method used by Signet. To estimate the fair value of inventory, Signet considered the aging of inventory, estimates of selling prices and selling and distribution costs and a reasonable profit margin for remaining selling efforts that were based on Zale’s historical experience. The fair value inventory adjustment will be fully recognized in cost of sales in the first year following consummation of the Acquisition. The fair value adjustment is not reflected in the pro forma condensed combined income statement as the costs are not expected to have a continuing impact on the combined company’s results.

(h) Reflects identifiable intangible assets representing trademarks and trade names with indefinite lives. The fair value was determined through an evaluation of expected future cash flows under the relief-from-royalty method. This estimate is preliminary and is subject to change upon completion of the final valuation of intangible assets. Changes in fair value of the acquired intangible assets may be material.

As significant information and analysis will be required to determine the fair value of certain acquired intangible assets, no fair value has been assigned to customer relationship assets, favorable and/or unfavorable lease arrangements, distribution rights or other potential off-market contracts unless specifically stated herein. The final acquisition date fair value will be based on an appraisal subsequent to completion of the Acquisition and may result in a materially different valuation for intangible assets, and related useful life, than that presented in this section. Any change in the amount of the final acquisition date fair value of amortizable, definite-lived intangible assets or any change in the current designation of non-amortizable indefinite-lived intangible assets could materially affect the amount of amortization expense recorded by the combined company subsequent to the date of completion of the transactions.

(i) Zale’s deferred revenue is comprised of amounts related to extended service plans. Historically, Zale deferred the revenue generated by the sale of these lifetime warranties and recognized revenue in relation to the pattern of costs expected to be incurred, which included a profit margin on activities related to the initial selling effort. In acquisition accounting, deferred revenue is only recognized when a legal performance obligation is assumed by the acquirer. The fair value of deferred revenue is determined based on the future obligations associated with the outstanding plans at the time of the Acquisition. The acquisition accounting adjustment results in a reduction to the Zale deferred revenue balance from $186.7 million as of January 31, 2014 to $102.0 million as the fair value was determined through the estimation of costs remaining to be incurred, plus a reasonable profit margin on the estimated costs. The current portion of deferred revenue was adjusted from $81.7 million to $42.2 million. The non-current portion of deferred revenue was adjusted from $105.0 million to $59.8 million. Revenues generated from the sales of extended services plans subsequent to the Acquisition are expected to be recognized in revenue in a similar manner to the accounting treatment utilized by Zale prior to the Acquisition.

(j) The following table summarizes pro forma adjustments impacting accrued expenses and other current liabilities and other liabilities, respectively:

	Amount			Note
Accrued expenses and other current liabilities:
Deferred rent	$	(6.1	)		(j1	)
Interest rate swap		(1.0	)		(j2	)
Diamond warranty		(0.3	)		(j3	)
Private label credit card contract		26.4			(j4	)
	$	19.0
Other liabililities:
Deferred rent	$	(21.8	)		(j1	)
Interest rate swap		(1.6	)		(j2	)
Diamond warranty		6.5			(j3	)
Private label credit card contract		17.6			(j4	)
	$	0.7

8

(j1) Reflects the acquisition accounting adjustment to eliminate the historical deferred rent balance of $27.9 million in aggregate. The current portion of deferred rent eliminated was $6.1 million and the non-current portion eliminated was $21.8 million, as deferred rent does not meet the definition of an asset or liability in acquisition accounting.

(j2) Zale has historically used interest rate swaps to hedge a portion of the interest rate risk arising associated with Zale’s LIBOR-based variable rate revolving credit agreement. In connection with the extinguishment of Zale’s revolving credit agreement, Zale will settle these interest rate swaps historically classified as cash flow hedges. This adjustment eliminates $1.0 million of accrued expenses and other current liabilities and $1.6 million of other liabilities.

(j3) Reflects the acquisition accounting adjustment to recognize Zale’s diamond warranty obligation at fair value. Historically, Zale recognized a warranty obligation for the expected cost under this warranty. The fair value of this warranty obligation has been determined by developing an estimate of the remaining performance obligation with an added profit margin on those remaining activities.

In the aggregate, the book value of this warranty obligation was increased from $3.8 million to a fair value of $10.0 million. The current liability for this obligation was adjusted to $3.5 million. The non-current liability for this obligation was adjusted to $6.5 million. This adjustment will be recognized as a component of cost of sales over approximately 3 years following the consummation of the Acquisition in a systematic and rationale method.

(j4) Reflects the acquisition accounting adjustment to record the fair value of the Citibank private label credit card arrangement deemed to be an off-market contract at the time of the Acquisition. Specifically, the current component is recognized in the amount of $26.4 million and the non-current component is recognized in the amount of $17.6 million. In addition, Zale management entered into a private label credit card agreement with Alliance Data Systems Corporation (“ADS”) in July 2013 and received a $38.0 million commencement payment for which Zale established a deferred service fee liability. The remaining terms of the ADS contract, which requires services to begin no later than October 2015 upon expiration of the Citibank arrangement, were evaluated and were identified as including off-market terms. The fair value of the ADS agreement was determined to be $38.0 million and is reflected as a non-current liability.

These adjustments will be amortized to selling, general and administrative expenses over the respective terms of each agreement following the consummation of the Acquisition.

(k) Reflects the acquisition accounting adjustment to eliminate both the historical debt issuance costs of $10.0 million as of January 31, 2014 upon settlement of Zale’s historical debt obligations and the historical lease issuance costs as of January 31, 2014 of $3.2 million as they do not meet the definition of an asset in acquisition accounting.

(l) Reflects the estimated tax effect of the acquisition accounting adjustments described within the notes to the unaudited pro forma condensed combined balance sheet based on an estimated statutory tax rate of 38.5%.

(m) Reflects the removal of a portion of the historical Zale valuation allowance on net operating loss carryforwards of $51.3 million.

(n) Reflects the elimination of Zale’s historical stockholder’s equity upon completion of the Transactions.

(o) Cash and cash equivalents represents borrowings of $1.4 billion, net of financing fees totaling $18.0 million. See note 3(p) for further detail.

Loans and overdrafts and long-term debt represent borrowings of $1.4 billion, comprised of $400.0 million under the senior unsecured term loan, $400.0 million for the issuance of senior unsecured notes and $600.0 million related to the asset-backed securitization. The $20.0 million balance reflected in loans and overdrafts represents the minimum required principal repayment under the senior unsecured term loan during the first 12 months following issuance.

(p) Reflects the capitalization of debt issuance costs totaling $13.8 million, comprised of $5.1 million related to the senior unsecured term loan, $5.3 million related to the senior unsecured notes, $2.5 million related to the asset-backed securitization and $0.9 million related to the revolving credit facility.

Additionally, as $4.2 million of debt issuance costs ($2.6 million net of tax) associated with Signet’s bridge facility were not expected to have a continuing impact on the combined company’s results, an adjustment was not reflected in the pro forma condensed combined income statement. However, the amount was recorded as a reduction of cash with a corresponding decrease in retained earnings.

4. Unaudited Pro Forma Condensed Combined Income Statement

(a) Reflects $41.9 million reduction of revenue for the impact of the fair value adjustment to deferred revenue for Zale’s extended service plans, offset by $6.8 million related to a reclassification of direct costs associated with the sale of these plans to selling, general and administrative expenses.

9

(b) The following table summarizes pro forma adjustments impacting cost of sales:

Year Ended February 1, 2014			Note
$	(6.5	)	(b1)
	2.4		(b2)
	(0.9	)	(b3)
	(1.7	)	(b4)
$	(6.7	)

(b1) Reflects the adjustment to recognize additional rent expense based on a recalculated straight-line rent amount.

(b2) Reflects the adjustment to recognize the fair value of diamond warranty costs incurred during the period as established in acquisition accounting. See note 3(j3) for further detail.

(b3) Reflects the elimination of $0.8 million of Zale’s deferred lease issuance costs as part of acquisition accounting, offset by an increase of $1.7 million to recognize expense for lease costs capitalized by Zale during the period to conform to Signet’s accounting policy.

(b4) Reflects the adjustment for the LIFO benefit to conform to Signet’s policy for accounting for inventories on the FIFO method.

(c) The following table summarizes pro forma adjustments impacting selling, general and administrative expenses:

Year Ended February 1, 2014			Note
$	(2.9	)	(c1)
$	2.0		(c2)
$	26.4		(c3)
$	25.5

(c1) Reflects the elimination of $3.9 million of deferred direct selling costs related to Zale’s extended service plans that were sold prior to February 3, 2013, offset by a reclassification of $6.8 million of direct selling costs associated with the sale of the plans during the pro forma period.

(c2) Reflects the elimination of historical expenses recognized of $2.0 million in connection with the Transactions, principally legal and financial advisory fees, due to the non-recurring nature of this expense.

(c3) Reflects an adjustment for the amortization expense of the unfavorable off-market contract based upon the fair value adjustment to the Citibank private label credit card agreement noted above. See note 3(j4) for further detail.

(d) Reflects the elimination of Zale’s historical interest expense, Signet’s historical interest expense and the addition of the new interest expense related to Signet’s new debt structure after the Transactions, comprised of the unsecured term loan, senior unsecured notes and asset-backed securitization.

Zale historical financing adjustments:
Historical interest expense related to senior term loan	$	9.0
Historical interest expense related to revolving credit agreement		9.4
Amortization of historical debt issue costs		4.8
	$	23.2
Signet historical financing adjustments:
Commitment fee on undrawn revolving credit facility	$	0.8
Amortization of historical debt issue costs		0.2
	$	1.0
Adjustments related to the Financings:
Interest expense related to the Financings	$	(36.4	)
Commitment fee on undrawn revolving credit facility		(1.0	)
Amortization of debt issue costs		(3.2	)
	$	(40.6	)

If the interest rate on the Financings were to change by 0.125%, Signet’s pro forma cash interest expense would change by $1.8 million.

10

(e) This adjustment is to reflect the income tax effect of the pro forma adjustments related to the Acquisition based on an estimated statutory tax rate of 38.5%. Because the tax rate used for these pro forma financial statements is an estimate, it will likely vary from the actual effective tax rate in periods subsequent to completion of the Transactions. The combined company’s ability to use net operating loss carryforwards to offset future taxable income for U.S. federal income tax purposes is subject to limitations. Furthermore, adjustments to established deferred tax assets and liabilities as well as the recognition of additional deferred tax assets and liabilities may occur in conjunction with the finalization of acquisition accounting and these items could be material. Although not reflected in the pro forma statements, the effective tax rate of the combined company could be significantly different depending on post-Acquisition activities, such as reviews of the corporate entity or capital structures and changes in business strategy impacting the geographical mix of federal, state and foreign taxes, among other factors.

5. Earnings per share

The unaudited pro forma combined basic and diluted earnings per share calculations are based on the consolidated basic and diluted weighted average shares of Signet.

	Fiscal 2014		Pro Forma
Net income	$	368.0	$	368.4
Basic weighted average number of shares outstanding		80.2		80.2
Dilutive effect of share awards		0.5		0.5
Diluted weighted average number of shares outstanding		80.7		80.7
Earnings per share - basic	$	4.59	$	4.59
Earnings per share - diluted	$	4.56	$	4.57

6. Unaudited Pro Forma Computation of Ratio of Earnings to Fixed Charges

	Fiscal Year Ended February 1, 2014
(in millions, except ratio)
Earnings:
Income before income taxes	$	555.2
Capitalized interest (1)	$	0.2
Fixed charges (2)		214.8
Total Earnings	$	770.2
Fixed Charges:
Interest expense, net	$	41.9
Amortization of debt issuance costs (3)		3.4
Capitalized interest		0.3
Estimate of interest within rental expense (4)		169.2
Total Fixed Charges	$	214.8
Pro Forma Ratio of Earnings to Fixed Charges		3.59x

(1) Includes the net of deductions for interest capitalized and additions for amortization of previously capitalized interest.

(2) Fixed charges comprise interest expense, net, amortization of debt issuance costs, capitalized interest and an estimate of the interest within rental expense.

(3) Primarily includes amortization costs associated with the issuance of new debt and amortization associated with our current credit facility amendment fees.

(4) Interest within rental expense is estimated to be one-third of rental expense.

11

EX-99.5

Exhibit 99.5

Unaudited Pro Forma Computation of Ratio of Earnings to Fixed Charges

	Fiscal Year Ended February 1, 2014
(in millions, except ratio)
Earnings:
Income before income taxes	$	555.2
Capitalized interest (1)	$	0.2
Fixed charges (2)		214.8
Total Earnings	$	770.2
Fixed Charges:
Interest expense, net	$	41.9
Amortization of debt issuance costs (3)		3.4
Capitalized interest		0.3
Estimate of interest within rental expense (4)		169.2
Total Fixed Charges	$	214.8
Pro Forma Ratio of Earnings to Fixed Charges		3.59x

(1) Includes the net of deductions for interest capitalized and additions for amortization of previously capitalized interest.

(2) Fixed charges comprise interest expense, net, amortization of debt issuance costs, capitalized interest and an estimate of the interest within rental expense.

(3) Primarily includes amortization costs associated with the issuance of new debt and amortization associated with our current credit facility amendment fees.

(4) Interest within rental expense is estimated to be one-third of rental expense.

1

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Income taxes (Tables)

12 Months Ended

Feb. 01, 2014

Tax Expense By Jurisdiction

	Fiscal 2014			Fiscal 2013		Fiscal 2012
(in millions)
Income before income taxes:
– US	$	493.7		$	494.3	$	423.2
– Foreign		72.8			62.6		78.9
Total income before income taxes	$	566.5		$	556.9	$	502.1
Current taxation:
– US	$	211.8		$	186.6	$	136.9
– Foreign		7.1			6.1		11.5
Deferred taxation:
– US		(22.8	)		3.1		26.1
– Foreign		2.4			1.2		3.2
Total income taxes	$	198.5		$	197.0	$	177.7

Reconciliation Of Effective Tax Rate

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

	Fiscal 2014			Fiscal 2013			Fiscal 2012
	%			%			%
US federal income tax rates		35.0			35.0			35.0
US state income taxes		2.5			2.7			2.7
Differences between US federal and foreign statutory income tax rates		(0.9	)		(0.6	)		(1.0	)
Expenditures permanently disallowable for tax purposes, net of permanent tax benefits		0.6			0.8			1.1
Benefit of intra-group financing and services arrangements		(2.1	)		(2.1	)		(2.0	)
Other items		(0.1	)		(0.4	)		(0.4	)
Effective tax rate		35.0			35.4			35.4

Deferred Tax Assets And Liabilities

Deferred tax assets (liabilities) consisted of the following:

	February 1, 2014									February 2, 2013
	Assets			(Liabilities)			Total			Assets			(Liabilities)			Total
(in millions)
US property, plant and equipment	$	—		$	(70.1	)	$	(70.1	)	$	—		$	(55.8	)	$	(55.8	)
Foreign property, plant and equipment		7.0			—			7.0			6.7			—			6.7
Inventory valuation		—			(169.2	)		(169.2	)		—			(188.6	)		(188.6	)
Allowances for doubtful accounts		39.7			—			39.7			36.6			—			36.6
Revenue deferral		134.3			—			134.3			122.4			—			122.4
Derivative instruments		6.9			—			6.9			—			—			—
Straight-line lease payments		27.5			—			27.5			26.8			—			26.8
Deferred compensation		9.9			—			9.9			7.7			—			7.7
Retirement benefit obligations		—			(12.0	)		(12.0	)		—			(11.2	)		(11.2	)
Share-based compensation		10.3			—			10.3			10.7			—			10.7
US state income tax accruals		5.3			—			5.3			5.6			—			5.6
Other temporary differences		15.0			—			15.0			16.2			—			16.2
Value of foreign capital losses		15.8			—			15.8			16.5			—			16.5
Total gross deferred tax asset (liability)	$	271.7		$	(251.3	)	$	20.4		$	249.2		$	(255.6	)	$	(6.4	)
Valuation allowance		(16.8	)		—			(16.8	)		(17.5	)		—			(17.5	)
Deferred tax asset (liability)	$	254.9		$	(251.3	)	$	3.6		$	231.7		$	(255.6	)	$	(23.9	)
Current assets							$	3.0								$	1.6
Current liabilities								(113.1	)								(129.6	)
Non-current assets								113.7									104.1
Deferred tax asset (liability)							$	3.6								$	(23.9	)

Activity Related To Unrecognized Tax Benefits

The following table summarizes the activity related to unrecognized tax benefits:

	Fiscal 2014			Fiscal 2013			Fiscal 2012
(in millions)
Balance at beginning of period	$	4.5		$	4.8		$	9.0
Increases related to current year tax positions		0.4			0.2			0.3
Prior year tax positions:
Increases		0.2			—			—
Decreases		—			—			(1.4	)
Cash settlements		(0.5	)		—			(2.6	)
Lapse of statute of limitations		—			(0.5	)		(0.5	)
Balance at end of period	$	4.6		$	4.5		$	4.8

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Summary of Amounts Recognized in Balance Sheet (Detail) (USD $) In Millions, unless otherwise specified	Feb. 01, 2014	Feb. 02, 2013
Amounts recognized in the balance sheet consist of:
Non-current assets	$ 56.3	$ 48.5
UK Plan
Amounts recognized in the balance sheet consist of:
Non-current assets	56.3	48.5
Non-current liabilities
Net asset recognized	$ 56.3	$ 48.5

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Pension plans (Tables)

12 Months Ended

Feb. 01, 2014

Summary Of Changes In Fair Value Of Plan Assets

The following tables provide information concerning the UK Plan as of and for the fiscal years ended February 1, 2014 and February 2, 2013:

	Fiscal 2014			Fiscal 2013
(in millions)
Change in UK Plan assets:
Fair value at beginning of year	$	261.1		$	236.0
Actual return on UK Plan assets		13.1			22.1
Employer contributions		4.9			13.7
Members’ contributions		0.7			0.5
Benefits paid		(9.3	)		(10.9	)
Foreign currency changes		12.1			(0.3	)
Fair value at end of year	$	282.6		$	261.1

Schedule of Changes in Projected Benefit Obligations

	Fiscal 2014			Fiscal 2013
(in millions)
Change in benefit obligation:
Benefit obligation at beginning of year	$	212.6		$	204.5
Service cost		2.4			3.6
Past service cost		0.9			1.1
Interest cost		9.3			9.5
Members’ contributions		0.7			0.5
Actuarial loss (gain)		(0.1	)		4.3
Benefits paid		(9.3	)		(10.9	)
Foreign currency changes		9.8			—
Benefit obligation at end of year	$	226.3		$	212.6

Schedule of Net Funded Status

Funded status at end of year: UK Plan assets less benefit obligation $ 56.3 $ 48.5

Summary Of Amounts Recognized In Balance Sheet

	February 1, 2014		February 2, 2013
(in millions)
Amounts recognized in the balance sheet consist of:
Non-current assets	$	56.3	$	48.5
Non-current liabilities		—		—
Net asset recognized	$	56.3	$	48.5

Summary Of Net Periodic Benefit Cost Not Yet Recognized

Items in accumulated OCI not yet recognized as income (expense) in the income statement:

	February 1, 2014			February 2, 2013			January 28, 2012
(in millions)
Net actuarial loss	$	(42.5	)	$	(44.4	)	$	(51.5	)
Net prior service credit		15.3			17.1			19.1

Components Of Net Periodic Pension Cost And Other Assets Recognized In Period

The components of net periodic pension cost and other amounts recognized in OCI for the UK Plan are as follows:

	Fiscal 2014			Fiscal 2013			Fiscal 2012
(in millions)
Components of net periodic pension cost:
Service cost	$	(2.4	)	$	(3.6	)	$	(4.8	)
Interest cost		(9.3	)		(9.5	)		(10.7	)
Expected return on UK Plan assets		13.0			11.5			13.8
Amortization of unrecognized net prior service credit		1.5			1.6			1.0
Amortization of unrecognized actuarial loss		(2.3	)		(3.2	)		(2.6	)
Net periodic pension benefit (cost)	$	0.5		$	(3.2	)	$	(3.3	)
Other changes in assets and benefit obligations recognized in OCI		0.1			6.7			(1.7	)
Total recognized in net periodic pension benefit (cost) and OCI	$	0.6		$	3.5		$	(5.0	)

Summary Of Assumptions Used To Determine Benefit Obligations

	February 1, 2014			February 2, 2013
Assumptions used to determine benefit obligations (at the end of the year):
Discount rate		4.40	%		4.50	%
Salary increases		3.00	%		3.20	%
Assumptions used to determine net periodic pension costs (at the start of the year):
Discount rate		4.50	%		4.70	%
Expected return on UK Plan assets		5.00	%		4.75	%
Salary increases		3.20	%		3.20	%

Summary Of Changes In Fair Value Of Level 3 Investment Assets

The table below sets forth changes in the fair value of the Level 3 investment assets in Fiscal 2014 and 2013:

(in millions)
Balance at January 28, 2012	$	10.3
Actual return on assets		0.1
Balance at February 2, 2013	$	10.4
Actual return on assets		1.2
Balance at February 1, 2014	$	11.6

Summary Of Expected Benefit Payments

The following benefit payments, which reflect expected future service, as appropriate, are estimated to be paid by the UK Plan:

(in millions)
Fiscal 2015	$	9.3
Fiscal 2016		10.3
Fiscal 2017		10.7
Fiscal 2018		10.3
Fiscal 2019		11.9
Fiscal 2020 to Fiscal 2024		62.2

Nonqualified Deferred Compensation Plan Assets

Fair Value Measurements Of Plan Assets

The value and classification of these assets are as follows:

	Fair value measurements at February 1, 2014						Fair value measurements at February 2, 2013
	Total		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Total		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)
(in millions)
Assets:
Corporate-owned life insurance plans	$	8.2	$	—	$	8.2	$	8.9	$	—	$	8.9
Money market funds		16.3		16.3		—		8.6		8.6		—
Total assets	$	24.5	$	16.3	$	8.2	$	17.5	$	8.6	$	8.9

U K Pension Plan

Fair Value Measurements Of Plan Assets

The value and classification of these assets was as follows:

	Fair value measurements at February 1, 2014								Fair value measurements at February 2, 2013
	Total		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant Unobservable inputs (Level 3)		Total		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
(in millions)
Asset category:
Diversified equity securities	$	41.0	$	19.1	$	21.9	$	—	$	73.2	$	34.9	$	38.3	$	—
Diversified growth funds		100.5		50.8		49.7		—		51.2		26.3		24.9		—
Fixed income – government bonds		64.2		—		64.2		—		63.4		—		63.4		—
Fixed income – corporate bonds		64.6		—		64.6		—		61.7		—		61.7		—
Property		11.6		—		—		11.6		10.4		—		—		10.4
Cash		0.7		0.7		—		—		1.2		1.2		—		—
Total	$	282.6	$	70.6	$	200.4	$	11.6	$	261.1	$	62.4	$	188.3	$	10.4

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Acquisitions (Tables)

12 Months Ended

Feb. 01, 2014

Total Consideration Allocated to Net Assets Acquired Based on Estimated Fair Values

The Ultra Acquisition was accounted for as a business combination during the fourth quarter of Fiscal 2013. During the first quarter of Fiscal 2014, the Company finalized the valuation of net assets acquired. There were no material changes to the valuation of net assets acquired from the initial allocation reported during the fourth quarter of Fiscal 2013. Accordingly, the total consideration paid has been allocated to the net assets acquired based on the final fair values at October 29, 2012 as follows:

	Initial Allocation			Final Allocation			Change
(in millions)
Recognized amounts of assets acquired and liabilities assumed:
Inventories	$	43.3		$	43.3		$	—
Other current assets, excluding cash acquired		3.3			3.3			—
Property and equipment		12.1			12.1			—
Other assets		0.3			0.3			—
Current liabilities		(19.5	)		(19.5	)		—
Other liabilities		(7.4	)		(7.4	)		—
Fair value of net assets acquired	$	32.1		$	32.1		$	—
Goodwill(1)		24.6			23.2			(1.4	)
Total consideration	$	56.7		$	55.3		$	(1.4	)

(1) None of the goodwill will be deductible for income tax purposes. The goodwill balance is recorded within other assets in the consolidated balance sheet. See Note 12.

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Common Shares, Treasury Shares and Reserves - Additional Information (Detail) (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended
	Feb. 01, 2014	Feb. 02, 2013	Jan. 28, 2012
Common Stock Equity [Line Items]
Common stock, par value	$ 0.18	$ 0.18
Proceeds from issuance of stock options	$ 9.3	$ 21.6	$ 10.6
Number of treasury shares held	7,000,000	5,800,000
Shares repurchased	1,557,673	6,425,296	256,241
Treasury stock reissued during period, Net of taxes and forfeitures	437,913	865,598	18,897

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Income Taxes Activity Related To Unrecognized Tax Benefits (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Feb. 01, 2014	Feb. 02, 2013	Jan. 28, 2012
Reconciliation of Unrecognized Tax Benefits
Balance at beginning of period	$ 4.5	$ 4.8	$ 9.0
Increases related to current year tax positions	0.4	0.2	0.3
Prior year tax positions, Increases	0.2
Prior year tax positions, Decreases			(1.4)
Cash settlements	(0.5)		(2.6)
Lapse of statute of limitations		(0.5)	(0.5)
Balance at end of period	$ 4.6	$ 4.5	$ 4.8

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Rental Expense for Operating Leases (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Feb. 01, 2014	Feb. 02, 2013	Jan. 28, 2012
Rental expense for operating leases
Minimum rentals	$ 323.7	$ 316.0	$ 311.7
Contingent rent	11.1	7.8	9.8
Sublease income	(0.9)	(2.9)	(5.1)
Total	$ 333.9	$ 320.9	$ 316.4

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Common shares, treasury shares and reserves (Tables)

12 Months Ended

Feb. 01, 2014

Share Repurchase Activity

Share repurchase activity is as follows:

			Fiscal 2014						Fiscal 2013						Fiscal 2012
	Amount authorized		Shares repurchased		Amount repurchased		Average repurchase price per share		Shares repurchased		Amount repurchased		Average repurchase price per share		Shares repurchased		Amount repurchased		Average repurchase price per share
	(in millions)				(in millions)						(in millions)						(in millions)
2013 Program(1)	$	350.0		808,428	$	54.6	$	67.54		na		na		na		na		na		na
2011 Program(2)		350.0		749,245		50.1		66.92		6,425,296	$	287.2	$	44.70		256,241	$	12.7	$	49.57
Total				1,557,673	$	104.7	$	67.24		6,425,296	$	287.2	$	44.70		256,241	$	12.7	$	49.57

(1) On June 14, 2013, the Board the repurchase of up to $350 million of Signet’s common shares (the “2013 Program”). The 2013 Program may be suspended or discontinued at any time without notice. The 2013 Program had $295.4 million remaining as of February 1, 2014.

(2) In October 2011, the Board authorized the repurchase of up to $300 million of Signet’s common shares (the “2011 Program”), which authorization was subsequently increased to $350 million. The 2011 Program was completed as of May 4, 2013.

na Not applicable.

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Cash and Cash Equivalents (Detail) (USD $) In Millions, unless otherwise specified	Feb. 01, 2014	Feb. 02, 2013	Jan. 28, 2012	Jan. 28, 2011
Cash and Cash Equivalents [Line Items]
Total cash and cash equivalents	$ 247.6	$ 301.0	$ 486.8	$ 302.1
Money Market and Other Funds
Cash and Cash Equivalents [Line Items]
Total cash and cash equivalents	225.3	276.6
Third Party Credit Card Issuers
Cash and Cash Equivalents [Line Items]
Total cash and cash equivalents	21.1	23.2
Cash On Hand
Cash and Cash Equivalents [Line Items]
Total cash and cash equivalents	$ 1.2	$ 1.2

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Fair Value and Presentation of Derivative Instruments In Condensed Consolidated Balance Sheets (Detail) (USD $) In Millions, unless otherwise specified	Feb. 01, 2014	Feb. 02, 2013
Derivatives, Fair Value [Line Items]
Total derivative assets	$ 1.0	$ 3.8
Total derivative liabilities	(2.9)	(4.6)
Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Total derivative assets	0.8	3.8
Total derivative liabilities	(2.9)	(4.6)
Designated as Hedging Instrument | Other Current Liabilities | Foreign Exchange Contract
Derivatives, Fair Value [Line Items]
Total derivative liabilities	(2.1)
Designated as Hedging Instrument | Other Current Liabilities | Commodity Contract
Derivatives, Fair Value [Line Items]
Total derivative liabilities	(0.8)	(4.6)
Designated as Hedging Instrument | Other Current Assets | Foreign Exchange Contract
Derivatives, Fair Value [Line Items]
Total derivative assets		1.0
Designated as Hedging Instrument | Other Current Assets | Commodity Contract
Derivatives, Fair Value [Line Items]
Total derivative assets	0.8	2.8
Not Designated as Hedging Instrument | Other Current Assets | Foreign Exchange Contract
Derivatives, Fair Value [Line Items]
Total derivative assets	$ 0.2

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Other Assets (Tables)

12 Months Ended

Feb. 01, 2014

Other Assets

	February 1, 2014		February 2, 2013
(in millions)
Deferred extended service plan costs	$	61.9	$	56.9
Goodwill		26.8		24.6
Other assets		25.3		18.4
Total other assets	$	114.0	$	99.9

Summary of Goodwill by Reporting Unit

The following table summarizes the Company’s goodwill by reporting unit:

	US			UK		Other		Total
(in millions)
Balance at January 28, 2012	$	—		$	—	$	—	$	—
Acquisition(1)		24.6			—		—		24.6
Balance at February 2, 2013		24.6			—		—		24.6
Acquisitions(1)		(1.4	)		—		3.6		2.2
Balance at February 1, 2014	$	23.2		$	—	$	3.6	$	26.8

(1) See Note 14 for additional discussion of the goodwill recorded by the Company during Fiscal 2014 and Fiscal 2013.

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Condensed Consolidating Financial Information

12 Months Ended

Feb. 01, 2014

Condensed Consolidating Financial Information

26. Condensed Consolidating Financial Information

The accompanying condensed consolidating financial information has been prepared and presented pursuant to SEC Regulation S-X, Rule 3-10, “Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered.” We and certain of our subsidiaries will guarantee the obligations under certain debt securities that may be issued by Signet UK Finance plc. The following presents the condensed consolidating financial information for: (i) the indirect Parent Company (Signet Jewelers Limited); (ii) the Issuer of the guaranteed obligations (Signet UK Finance plc); (iii) the Guarantor subsidiaries, on a combined basis; (iv) the Non-Guarantor subsidiaries, on a combined basis; (v) Consolidating eliminations; and (vi) Signet Jewelers Limited and Subsidiaries on a consolidated basis. Each Guarantor subsidiary is 100% owned by the Parent Company at the date of each balance sheet presented. The Guarantor subsidiaries, along with Signet Jewelers Limited, will fully and unconditionally guarantee the obligations of Signet UK Finance plc under any such debt securities. Each entity in the consolidating financial information follows the same accounting policies as described in the consolidated financial statements.

The accompanying consdensed consolidating finanical information has been presented on the equity method of accounting for all periods presented. Under this method, investments in subsidiaries are recorded at cost and adjusted for the subsidiaries’ cumulative results of operations, capital contributions and distributions, and other changes in equity. Elimination entries include consolidating and eliminating entries for investments in subsidiaries, and intercompany activity and balances.

Supplemental Condensed Consolidated Income Statement

For the 52 week period ended February 1, 2014

	Signet Jewelers Limited			Signet UK Finance plc		Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
(in millions)
Sales	$	—		$	—	$	4,162.9		$	46.3		$	—		$	4,209.2
Cost of sales		—			—		(2,621.2	)		(7.5	)		—			(2,628.7	)
Gross margin		—			—		1,541.7			38.8			—			1,580.5
Selling, general and administrative expenses		(2.9	)		—		(1,193.1	)		(0.7	)		—			(1,196.7	)
Other operating income, net		—			—		183.8			2.9			—			186.7
Operating (loss) income		(2.9	)		—		532.4			41.0			—			570.5
Intercompany interest (expense) income		—			—		(34.5	)		34.5			—			—
Interest expense, net		—			—		(3.9	)		(0.1	)		—			(4.0	)
(Loss) income before income taxes		(2.9	)		—		494.0			75.4			—			566.5
Income taxes		—			—		(196.8	)		(1.7	)		—			(198.5	)
Equity in income of subsidiaries		370.9			—		344.2			301.3			(1,016.4	)		—
Net income	$	368.0		$	—	$	641.4		$	375.0		$	(1,016.4	)	$	368.0

Supplemental Condensed Consolidated Income Statement

For the 53 week period ended February 2, 2013

	Signet Jewelers Limited			Signet UK Finance plc		Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
(in millions)
Sales	$	—		$	—	$	3,948.5		$	34.9		$	—		$	3,983.4
Cost of sales		—			—		(2,443.4	)		(2.6	)		—			(2,446.0	)
Gross margin		—			—		1,505.1			32.3			—			1,537.4
Selling, general and administrative expenses		(3.5	)		—		(1,135.6	)		0.8			—			(1,138.3	)
Other operating income, net		—			—		161.7			(0.3	)		—			161.4
Operating (loss) income		(3.5	)		—		531.2			32.8			—			560.5
Intercompany interest (expense) income		—			—		(41.1	)		41.1			—			—
Interest expense, net		—			—		(3.7	)		0.1			—			(3.6	)
(Loss) income before income taxes		(3.5	)		—		486.4			74.0			—			556.9
Income taxes		—			—		(195.8	)		(1.2	)		—			(197.0	)
Equity in income of subsidiaries		363.4			—		333.9			295.1			(992.4	)		—
Net income	$	359.9		$	—	$	624.5		$	367.9		$	(992.4	)	$	359.9

Supplemental Condensed Consolidated Income Statement

For the 52 week period ended January 28, 2012

	Signet Jewelers Limited			Signet UK Finance plc		Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
(in millions)
Sales	$	—		$	—	$	3,719.6		$	29.6		$	—		$	3,749.2
Cost of sales		—			—		(2,311.4	)		(0.2	)		—			(2,311.6	)
Gross margin		—			—		1,408.2			29.4			—			1,437.6
Selling, general and administrative expenses		(4.3	)		—		(1,053.2	)		0.8			—			(1,056.7	)
Other operating income, net		0.1			—		126.8			(0.4	)		—			126.5
Operating (loss) income		(4.2	)		—		481.8			29.8			—			507.4
Intercompany interest (expense) income		—			—		(43.0	)		43.0			—			—
Interest expense, net		—			—		(5.2	)		(0.1	)		—			(5.3	)
(Loss) income before income taxes		(4.2	)		—		433.6			72.7			—			502.1
Income taxes		—			—		(173.8	)		(3.9	)		—			(177.7	)
Equity in income of subsidiaries		328.6			—		308.8			269.4			(906.8	)		—
Net income	$	324.4		$	—	$	568.6		$	338.2		$	(906.8	)	$	324.4

Supplemental Condensed Consolidated Statement of Comprehensive Income

For the 52 week period ended February 1, 2014

	Signet Jewelers Limited		Signet UK Finance plc		Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
(in millions)
Net income	$	368.0	$	—	$	641.4		$	375.0		$	(1016.4	)	$	368.0
Other comprehensive income (loss):
Foreign currency translation adjustments		—		—		13.9			(2.7	)		1.2			12.4
Cash flow hedges:
Unrealized loss		—		—		(22.0	)		—			—			(22.0	)
Reclassification adjustment for losses to net income		—		—		6.7			—			—			6.7
Pension plan:
Actuarial gain		—		—		0.2			—			—			0.2
Reclassification adjustment to net income for amortization of actuarial loss		—		—		1.7			—			—			1.7
Prior service benefit		—		—		(0.7	)		—			—			(0.7	)
Reclassification adjustment to net income for amortization of prior service credits		—		—		(1.1	)		—			—			(1.1	)
Total other comprehensive (loss) income	$	—	$	—	$	(1.3	)	$	(2.7	)	$	1.2		$	(2.8	)
Total comprehensive income	$	368.0	$	—	$	640.1		$	372.3		$	(1,015.2	)	$	365.2

Supplemental Condensed Consolidated Statement of Comprehensive Income

For the 53 week period ended February 2, 2013

	Signet Jewelers Limited		Signet UK Finance plc		Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Eliminations			Consolidated
(in millions)
Net income	$	359.9	$	—	$	624.5		$	367.9	$	(992.4	)	$	359.9
Other comprehensive income (loss):
Foreign currency translation adjustments		—		—		(0.6	)		0.1		—			(0.5	)
Cash flow hedges:
Unrealized loss		—		—		(6.7	)		—		—			(6.7	)
Reclassification adjustment for gains to net income		—		—		(14.4	)		—		—			(14.4	)
Pension plan:
Actuarial gain		—		—		4.7			—		—			4.7
Reclassification adjustment to net income for amortization of actuarial loss		—		—		2.4			—		—			2.4
Prior service benefit		—		—		(0.8	)		—		—			(0.8	)
Reclassification adjustment to net income for amortization of prior service credits		—		—		(1.2	)		—		—			(1.2	)
Total other comprehensive (loss) income	$	—	$	—	$	(16.6	)	$	0.1	$	—		$	(16.5	)
Total comprehensive income	$	359.9	$	—	$	607.9		$	368.0	$	(992.4	)	$	343.4

Supplemental Condensed Consolidated Statement of Comprehensive Income

For the 52 week period ended January 28, 2012

	Signet Jewelers Limited		Signet UK Finance plc		Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Eliminations			Consolidated
(in millions)
Net income	$	324.4	$	—	$	568.6		$	338.2	$	(906.8	)	$	324.4
Other comprehensive income:
Foreign currency translation adjustments		—		—		(4.4	)		0.6		(0.1	)		(3.9	)
Cash flow hedges:
Unrealized gain		—		—		32.2			—		—			32.2
Reclassification adjustment for gains to net income		—		—		(16.0	)		—		—			(16.0	)
Pension plan:
Actuarial loss		—		—		(7.3	)		—		—			(7.3	)
Reclassification adjustment to net income for amortization of actuarial loss		—		—		1.8			—		—			1.8
Prior service costs		—		—		5.5			—		—			5.5
Reclassification adjustment to net income for amortization of prior service credits		—		—		(0.7	)		—		—			(0.7	)
Total other comprehensive income	$	—	$	—	$	11.1		$	0.6	$	(0.1	)	$	11.6
Total comprehensive income	$	324.4	$	—	$	579.7		$	338.8	$	(906.9	)	$	336.0

Supplemental Condensed Consolidated Balance Sheet

February 1, 2014

	Signet Jewelers Limited		Signet UK Finance plc		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			Consolidated
(in millions)
Assets
Current assets:
Cash and cash equivalents	$	1.4	$	—	$	237.0	$	9.2	$	—		$	247.6
Accounts receivable, net		—		—		1,361.3		12.7		—			1,374.0
Intercompany receivables, net		47.7		—		—		238.0		(285.7	)		—
Other receivables		—		—		51.1		0.4		—			51.5
Other current assets		—		—		86.5		0.5		—			87.0
Deferred tax assets		—		—		2.8		0.2		—			3.0
Income taxes		—		—		6.0		0.5		—			6.5
Inventories		—		—		1,434.5		53.5		—			1,488.0
Total current assets		49.1		—		3,179.2		315.0		(285.7	)		3,257.6
Non-current assets:
Property, plant and equipment, net		—		—		481.5		6.1		—			487.6
Investment in subsidiaries		2,526.3		—		1,452.8		1,143.2		(5,122.3	)		—
Intercompany receivables, net		—		—		—		1,098.0		(1,098.0	)		—
Other assets		—		—		110.4		3.6		—			114.0
Deferred tax assets		—		—		113.6		0.1		—			113.7
Retirement benefit asset		—		—		56.3		—		—			56.3
Total assets	$	2,575.4	$	—	$	5,393.8	$	2,566.0	$	(6,506.0	)	$	4,029.2
Liabilities and Shareholders’ equity
Current liabilities:
Loans and overdrafts	$	—	$	—	$	19.3	$	—	$	—		$	19.3
Accounts payable		—		—		160.5		2.4		—			162.9
Intercompany payables, net		—		—		285.7		—		(285.7	)		—
Accrued expenses and other current liabilities		12.3		—		313.1		3.1		—			328.5
Deferred revenue		—		—		173.0		—		—			173.0
Deferred tax liabilities		—		—		113.1		—		—			113.1
Income taxes		—		—		101.3		2.6		—			103.9
Total current liabilities		12.3		—		1,166.0		8.1		(285.7	)		900.7
Non-current liabilities:
Intercompany payables, net		—		—		1,098.0		—		(1,098.0	)		—
Other liabilities		—		—		118.5		3.2		—			121.7
Deferred revenue		—		—		443.7		—		—			443.7
Total liabilities		12.3		—		2,826.2		11.3		(1,383.7	)		1,466.1
Total shareholders’ equity		2,563.1		—		2,567.6		2,554.7		(5,122.3	)		2,563.1
Total liabilities and shareholders’ equity	$	2,575.4	$	—	$	5,393.8	$	2,566.0	$	(6,506.0	)	$	4,029.2

Supplemental Condensed Consolidated Balance Sheet

February 2, 2013

	Signet Jewelers Limited		Signet UK Finance plc		Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated
(in millions)
Assets
Current assets:
Cash and cash equivalents	$	13.4	$	—	$	271.3	$	16.3		$	—		$	301.0
Accounts receivable, net		—		—		1,198.8		6.5			—			1,205.3
Intercompany receivables, net		37.3		—		—		715.8			(753.1	)		—
Other receivables		—		—		41.8		0.3			—			42.1
Other current assets		0.2		—		85.0		0.4			—			85.6
Deferred tax assets		—		—		1.1		0.5			—			1.6
Income taxes		—		—		3.5		—			—			3.5
Inventories		—		—		1,360.9		36.1			—			1,397.0
Total current assets		50.9		—		2,962.4		775.9			(753.1	)		3,036.1
Non-current assets:
Property, plant and equipment, net		—		—		429.7		0.7			—			430.4
Investment in subsidiaries		2,288.9		—		1,335.3		1,039.3			(4,663.5	)		—
Intercompany receivables, net		—		—		—		600.0			(600.0	)		—
Other assets		—		—		99.9		—			—			99.9
Deferred tax assets		—		—		104.1		—			—			104.1
Retirement benefit asset		—		—		48.5		—			—			48.5
Total assets	$	2,339.8	$	—	$	4,979.9	$	2,415.9		$	(6,016.6	)	$	3,719.0
Liabilities and Shareholders’ equity
Current liabilities:
Loans and overdrafts	$	—	$	—	$	—	$	—		$	—		$	—
Accounts payable		—		—		160.0		(4.1	)		—			155.9
Intercompany payables, net		—		—		753.1		—			(753.1	)		—
Accrued expenses and other current liabilities		9.9		—		312.3		4.2			—			326.4
Deferred revenue		—		—		159.7		—			—			159.7
Deferred tax liabilities		—		—		129.6		—			—			129.6
Income taxes		—		—		95.9		4.4			—			100.3
Total current liabilities		9.9		—		1,610.6		4.5			(753.1	)		871.9
Non-current liabilities:
Intercompany payables, net		—		—		600.0		—			(600.0	)		—
Other liabilities		—		—		106.1		5.2			—			111.3
Deferred revenue		—		—		405.9		—			—			405.9
Total liabilities		9.9		—		2,722.6		9.7			(1,353.1	)		1,389.1
Total shareholders’ equity		2,329.9		—		2,257.3		2,406.2			(4,663.5	)		2,329.9
Total liabilities and shareholders’ equity		2,339.8	$	—	$	4,979.9	$	2,415.9		$	(6,016.6	)	$	3,719.0

Supplemental Condensed Consolidated Statement of Cash Flows

For the 52 week period ended February 1, 2014

	Signet Jewelers Limited			Signet UK Finance plc		Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
(in millions)
Cash flows from operating activities
Other cash provided by operating activities	$	137.3		$	—	$	421.3		$	286.9		$	(610.0	)	$	235.5
Net cash provided by operating activities		137.3			—		421.3			286.9			(610.0	)		235.5
Investing activities
Purchase of property, plant and equipment		—			—		(152.6	)		(0.1	)		—			(152.7	)
Investment in subsidiaries		(0.3	)		—		(11.0	)		(11.0	)		22.3			—
Acquisition of Ultra Stores, Inc., net of cash received		—			—		1.4			—			—			1.4
Acquisition of diamond polishing factory		—			—		—			(9.1	)		—			(9.1	)
Net cash used in investing activities		(0.3	)		—		(162.2	)		(20.2	)		22.3			(160.4	)
Financing activities
Dividends paid		(46.0	)		—		—			—			—			(46.0	)
Intercompany dividends paid		—			—		(104.4	)		(35.6	)		140.0			—
Proceeds from issuance of common shares		9.3			—		—			22.3			(22.3	)		9.3
Excess tax benefit from exercise of share awards		—			—		6.5			—			—			6.5
Repurchase of common shares		(104.7	)		—		—			—			—			(104.7	)
Net settlement of equity based awards		(9.2	)		—		—			—			—			(9.2	)
Proceeds from short-term borrowings		—			—		19.3			—			—			19.3
Intercompany activity, net		1.6			—		(214.6	)		(257.0	)		470.0			—
Net cash used in financing activities		(149.0	)		—		(293.2	)		(270.3	)		587.7			(124.8	)
Cash and cash equivalents at beginning of period		13.4			—		271.3			16.3			—			301.0
Decrease in cash and cash equivalents		(12.0	)		—		(34.1	)		(3.6	)		—			(49.7	)
Effect of exchange rate changes on cash and cash equivalents		—			—		(0.2	)		(3.5	)		—			(3.7	)
Cash and cash equivalents at end of period	$	1.4		$	—	$	237.0		$	9.2		$	—		$	247.6

Supplemental Condensed Consolidated Statement of Cash Flows

For the 53 week period ended February 2, 2013

	Signet Jewelers Limited			Signet UK Finance plc		Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
(in millions)
Cash flows from operating activities
Other cash provided by operating activities	$	305.7		$	—	$	512.5		$	280.5		$	(786.0	)	$	359.9
Net cash provided by operating activities		305.7			—		512.5			280.5			(786.0	)	$	312.7
Investing activities
Purchase of property, plant and equipment		—			—		(134.0	)		(0.2	)		—			(134.2	)
Acquisition of Ultra Stores, Inc., net of cash received		—			—		(56.7	)		—			—			(56.7	)
Net cash used in investing activities		—			—		(190.7	)		(0.2	)		—			(190.9	)
Financing activities
Dividends paid		(38.4	)		—		—			—			—			(38.4	)
Intercompany dividends paid		—			—		(520.1	)		(265.9	)		786.0			—
Proceeds from issuance of common shares		21.6			—		—			—			—			21.6
Excess tax benefit from exercise of share awards		—			—		7.4			—			—			7.4
Repurchase of common shares		(287.2	)		—		—			—			—			(287.2	)
Net settlement of equity based awards		(11.5	)		—		—			—			—			(11.5	)
Intercompany activity, net		17.1			—		(9.9	)		(7.2	)		—			—
Net cash used in financing activities		(298.4	)		—		(522.6	)		(273.1	)		786.0			(308.1	)
Cash and cash equivalents at beginning of period		6.1			—		471.6			9.1			—			486.8
Increase (decrease) in cash and cash equivalents		7.3			—		(200.8	)		7.2			—			(186.3	)
Effect of exchange rate changes on cash and cash equivalents		—			—		0.5			—			—			0.5
Cash and cash equivalents at end of period	$	13.4		$	—	$	271.3		$	16.3		$	—		$	301.0

Supplemental Condensed Consolidated Statement of Cash Flows

For the 52 week period ended January 28, 2012

	Signet Jewelers Limited			Signet UK Finance plc		Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
(in millions)
Cash flows from operating activities
Other cash provided by operating activities	$	45.7		$	—	$	665.2		$	306.5		$	(692.2	)	$	325.2
Net cash provided by operating activities		45.7			—		665.2			306.5			(692.2	)		325.2
Investing activities
Purchase of property, plant and equipment		—			—		(97.8	)		—			—			(97.8	)
Investment in subsidiaries		—			—		(4.2	)		(2.4	)		6.6			—
Net cash used in investing activities		—			—		(102.0	)		(2.4	)		6.6			(97.8	)
Financing activities
Dividends paid		(8.7	)		—		—			—			—			(8.7	)
Intercompany dividends paid		—			—		(253.3	)		(438.9	)		692.2			—
Proceeds from issuance of common shares		10.6			—		—			2.4			(2.4	)		10.6
Excess tax benefit from exercise of share awards		—			—		3.9			—			—			3.9
Repurchase of common shares		(12.7	)		—		—			—			—			(12.7	)
Credit facility fees paid		—			—		(2.1	)		—			—			(2.1	)
Repayment of short-term borrowings		—			—		(31.0	)		—			—			(31.0	)
Intercompany activity, net		(38.6	)		—		(80.6	)		123.4			(4.2	)		—
Net cash used in financing activities		(49.4	)		—		(363.1	)		(313.1	)		685.6			(40.0	)
Cash and cash equivalents at beginning of period		9.8			—		275.0			17.3			—			302.1
(Decrease) increase in cash and cash equivalents		(3.7	)		—		200.1			(9.0	)		—			187.4
Effect of exchange rate changes on cash and cash equivalents		—			—		(3.5	)		0.8			—			(2.7	)
Cash and cash equivalents at end of period	$	6.1		$	—	$	471.6		$	9.1		$	—		$	486.8

XML

Accounts Receivable, net - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Feb. 01, 2014	Feb. 01, 2014 Other Accounts Receivable	Feb. 02, 2013 Other Accounts Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage allowance on losses	100.00%
Losses allowance maturity period	90 days
Finance receivable age	90 days
Gross accounts receivable		$ 12.8	$ 13.0
Valuation of allowance		$ 0.3	$ 0.6

XML

Summary of Changes In Fair Value of Level 3 Investment Assets (Detail) (UK Plan, USD $) In Millions, unless otherwise specified	12 Months Ended
	Feb. 01, 2014	Feb. 02, 2013
Defined Benefit Plan Disclosure [Line Items]
Beginning Balance	$ 261.1	$ 236.0
Actual return on assets	13.1	22.1
Ending Balance	282.6	261.1
Fair Value, Inputs, Level 3
Defined Benefit Plan Disclosure [Line Items]
Beginning Balance	10.4	10.3
Actual return on assets	1.2	0.1
Ending Balance	$ 11.6	$ 10.4

XML

Share-Based Compensation Expense and Associated Tax Benefits (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Feb. 01, 2014	Feb. 02, 2013	Jan. 28, 2012
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 14.4	$ 15.7	$ 17.0
Income tax benefit	$ (5.2)	$ (5.4)	$ (5.7)

XML

Subsequent Event - Additional Information (Detail) (Subsequent Event, Zale, USD $) In Billions, except Per Share data, unless otherwise specified	1 Months Ended
	Feb. 19, 2014
Subsequent Event | Zale
Subsequent Event [Line Items]
Common stock price per share	$ 21.00
Total Consideration	$ 1.4

XML

Payment Of Dividends (Detail) (USD $) In Millions, except Per Share data, unless otherwise specified	12 Months Ended
	Feb. 01, 2014		Feb. 02, 2013		Jan. 28, 2012
Dividends, Cash [Abstract]
Cash dividend per share	$ 0.60		$ 0.48		$ 0.20
Total dividents	$ 48.2		$ 39.5		$ 17.4
First Quarter Dividend
Dividends, Cash [Abstract]
Cash dividend per share	$ 0.15		$ 0.12
Total dividents	12.1		10.3
Second Quarter Dividend
Dividends, Cash [Abstract]
Cash dividend per share	$ 0.15		$ 0.12
Total dividents	12.1		9.6
Third Quarter Dividend
Dividends, Cash [Abstract]
Cash dividend per share	$ 0.15		$ 0.12		$ 0.10
Total dividents	12.0		9.8		8.7
Fourth Quarter Dividend
Dividends, Cash [Abstract]
Cash dividend per share	$ 0.15	[1]	$ 0.12	[1]	$ 0.10	[1]
Total dividents	$ 12.0	[1],[2]	$ 9.8	[1],[2]	$ 8.7	[1]

[1] Signet's dividend policy results in the dividend payment date being a quarter in arrears from the declaration date. As a result, the dividend declared in the fourth quarter of each fiscal year is paid in the subsequent fiscal year. The dividends are reflected in the consolidated statement of cash flows upon payment.

[2] As of February 1, 2014 and February 2, 2013, $12.0 million and $9.8 million, respectively, has been recorded in accrued expenses and other current liabilities in the consolidated balance sheets reflecting the cash dividends declared for the fourth quarter of Fiscal 2014 and Fiscal 2013, respectively.

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Property Plant and Equipment Net - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Feb. 01, 2014	Feb. 02, 2013	Jan. 28, 2012
Property, Plant and Equipment [Line Items]
Depreciation and amortization expense	$ 110.2	$ 99.4	$ 92.4
Impairment of assets	$ 0.7	$ 2.6	$ 1.4

XML

Share-based compensation (Tables)

12 Months Ended

Feb. 01, 2014

Share-Based Compensation Expense and Associated Tax Benefits

Share-based compensation expense and the associated tax benefits are as follows:

	Fiscal 2014			Fiscal 2013			Fiscal 2012
(in millions)
Share-based compensation expense	$	14.4		$	15.7		$	17.0
Income tax benefit	$	(5.2	)	$	(5.4	)	$	(5.7	)

Summary of Unrecognized Compensation Cost Related to Outstanding Awards

Unrecognized compensation cost related to awards granted under share-based compensation plans is as follows:

	Unrecognized Compensation Cost
	Fiscal 2014		Fiscal 2013		Fiscal 2012
(in millions)
Omnibus Plan	$	14.4	$	14.6	$	16.3
Share Saving Plans		2.9		2.9		3.3
CEO Shares		—		0.4		2.3
Total	$	17.3	$	17.9	$	21.9
Weighted average period of amortization		1.8 years		1.7 years		1.6 years

Share Saving Plans

Significant Assumptions Utilized to Estimate Weighted-Average Fair Value of Awards Granted

The significant assumptions utilized to estimate the weighted-average fair value of awards granted under the Share Saving Plans are as follows:

	Share Saving Plans
	Fiscal 2014			Fiscal 2013			Fiscal 2012
Share price(1)	$	72.65		$	49.89		$	40.09
Exercise price(1)	$	59.75		$	41.17		$	28.32
Risk free interest rate(1)		0.7	%		0.4	%		0.7	%
Expected term(1)		2.7 years			2.7 years			3.0 years
Expected volatility(1)		40.2	%		41.0	%		43.0	%
Dividend yield(1)		1.1	%		1.4	%		1.0	%
Fair value(1)	$	22.89		$	15.40		$	11.55

(1) Weighted average.

Activity for Awards Granted Under the Plan

The Fiscal 2014 activity for awards granted under the Share Saving Plans is as follows:

	Share Saving Plans
	No. of shares			Weighted average exercise price		Weighted average remaining contractual life		Intrinsic value(1)
	millions							millions
Outstanding at February 2, 2013		0.3		$	32.48		1.9 years	$	9.8
Fiscal 2014 activity:
Granted		0.1		$	59.75
Exercised		(0.1	)	$	27.32
Lapsed		—		$	—
Outstanding at February 1, 2014		0.3		$	44.06		1.7 years	$	9.4
Exercisable at February 2, 2013		—		$	—		—	$	—
Exercisable at February 1, 2014		—		$	—		—	$	—

(1) Intrinsic value for outstanding awards is based on the fair market value of Signet’s common stock on the last business day of the fiscal year.

Summary of Additional Information about Awards Granted

The following table summarizes additional information about awards granted under the Share Saving Plans:

	Fiscal 2014		Fiscal 2013		Fiscal 2012
(in millions)
Weighted average grant date fair value per share of awards granted	$	22.89	$	15.40	$	11.55
Total intrinsic value of options exercised	$	4.9	$	3.3	$	1.1
Cash received from share options exercised	$	2.9	$	2.7	$	3.2

Executive Plans

Activity for Awards Granted Under the Plan

The Fiscal 2014 activity for awards granted under the Executive Plans is as follows:

	Executive Plans
	No. of shares			Weighted average exercise price		Weighted average remaining contractual life		Intrinsic value(1)
	millions							millions
Outstanding at February 2, 2013		0.3		$	39.07		3.4 years	$	6.5
Fiscal 2014 activity:
Granted		—		$	—
Exercised		(0.2	)	$	39.28
Lapsed		—		$	—
Outstanding at February 1, 2014		0.1		$	39.11		3.5 years	$	4.1
Exercisable at February 2, 2013		0.3		$	39.07			$	6.5
Exercisable at February 1, 2014		0.1		$	39.11			$	4.1

(1) Intrinsic value for outstanding awards is based on the fair market value of Signet’s common stock on the last business day of the fiscal year.

Summary of Additional Information about Awards Granted

The following table summarizes additional information about awards granted under the Executive Plans:

	Fiscal 2014		Fiscal 2013		Fiscal 2012
(in millions)
Total intrinsic value of options exercised	$	4.8	$	9.0	$	5.2
Cash received from share options exercised	$	6.3	$	18.9	$	7.4

Omnibus Plan

Significant Assumptions Utilized to Estimate Weighted-Average Fair Value of Awards Granted

The significant assumptions utilized to estimate the weighted-average fair value of awards granted under the Omnibus Plan are as follows:

	Omnibus Plan
	Fiscal 2014			Fiscal 2013			Fiscal 2012
Share price(1)	$	67.39		$	47.15		$	44.33
Risk free interest rate(1)		0.3	%		0.4	%		1.4	%
Expected term(1)		2.8 years			2.9 years			2.9 years
Expected volatility(1)		41.7	%		44.2	%		45.1	%
Dividend yield(1)		1.1	%		1.2	%		0.7	%
Fair value(1)	$	66.10		$	46.12		$	43.52

(1) Weighted average.

Activity for Awards Granted Under the Plan

The Fiscal 2014 activity for awards granted under the Omnibus Plan is as follows:

	Omnibus  Plans(1)
	No. of shares			Weighted average grant date fair value		Weighted average remaining contractual life		Intrinsic value(2)
	millions							millions
Outstanding at February 2, 2013		1.2		$	40.86		1.1 years	$	73.1
Fiscal 2014 activity:
Granted		0.3		$	66.10
Vested		(0.4	)	$	33.62
Lapsed		(0.1	)	$	46.58
Outstanding at February 1, 2014		1.0		$	51.44		1.0 years	$	80.1

(1) Includes shares issued to the CEO, whose contract includes share based compensation for amounts foregone from his prior employment.

(2) Intrinsic value for outstanding restricted stock and RSUs is based on the fair market value of Signet’s common stock on the last business day of the fiscal year.

Summary of Additional Information about Awards Granted

The following table summarizes additional information about awards granted under the Omnibus Plan:

	Fiscal 2014		Fiscal 2013		Fiscal 2012
(in millions)
Total intrinsic value of awards vested	$	25.3	$	28.5	$	0.5

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Fair Value of Financial Instruments Held or Issued (Detail) (USD $) In Millions, unless otherwise specified	Feb. 01, 2014	Feb. 02, 2013	Jan. 28, 2012
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets, Carrying Value	$ 4,029.2	$ 3,719.0	$ 3,611.4
Liabilities, Carrying Value	(1,466.1)	(1,389.1)	(1,332.3)
Foreign Exchange Contract
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets, Carrying Value	0.2	1.0
Liabilities, Carrying Value	(2.1)
Commodity Contract
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets, Carrying Value	0.8	2.8
Liabilities, Carrying Value	(0.8)	(4.6)
Level 2 | Foreign Exchange Contract
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets, Fair Value	0.2	1.0
Liabilities, Fair Value	(2.1)
Level 2 | Commodity Contract
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets, Fair Value	0.8	2.8
Liabilities, Fair Value	$ (0.8)	$ (4.6)

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Supplemental Condensed Consolidated Income Statement (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended								12 Months Ended
	Feb. 01, 2014	Nov. 02, 2013	Aug. 03, 2013	May 04, 2013	Feb. 02, 2013	Oct. 27, 2012	Jul. 28, 2012	Apr. 28, 2012	Feb. 01, 2014	Feb. 02, 2013	Jan. 28, 2012
Condensed Financial Statements, Captions [Line Items]
Sales	$ 1,564.0	$ 771.4	$ 880.2	$ 993.6	$ 1,513.3	$ 716.2	$ 853.9	$ 900.0	$ 4,209.2	$ 3,983.4	$ 3,749.2
Cost of sales									(2,628.7)	(2,446.0)	(2,311.6)
Gross margin	648.8	239.2	309.7	382.8	637.1	235.4	311.2	353.7	1,580.5	1,537.4	1,437.6
Selling, general and administrative expenses									(1,196.7)	(1,138.3)	(1,056.7)
Other operating income, net									186.7	161.4	126.5
Operating (loss) income									570.5	560.5	507.4
Interest expense, net									(4.0)	(3.6)	(5.3)
(Loss) income before income taxes									566.5	556.9	502.1
Income taxes									(198.5)	(197.0)	(177.7)
Net income	175.2	33.6	67.4	91.8	171.8	34.9	70.7	82.5	368.0	359.9	324.4
Signet Jewelers Limited
Condensed Financial Statements, Captions [Line Items]
Selling, general and administrative expenses									(2.9)	(3.5)	(4.3)
Other operating income, net											0.1
Operating (loss) income									(2.9)	(3.5)	(4.2)
(Loss) income before income taxes									(2.9)	(3.5)	(4.2)
Equity in income of subsidiaries									370.9	363.4	328.6
Net income									368.0	359.9	324.4
Guarantor Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Sales									4,162.9	3,948.5	3,719.6
Cost of sales									(2,621.2)	(2,443.4)	(2,311.4)
Gross margin									1,541.7	1,505.1	1,408.2
Selling, general and administrative expenses									(1,193.1)	(1,135.6)	(1,053.2)
Other operating income, net									183.8	161.7	126.8
Operating (loss) income									532.4	531.2	481.8
Intercompany interest (expense) income									(34.5)	(41.1)	(43.0)
Interest expense, net									(3.9)	(3.7)	(5.2)
(Loss) income before income taxes									494.0	486.4	433.6
Income taxes									(196.8)	(195.8)	(173.8)
Equity in income of subsidiaries									344.2	333.9	308.8
Net income									641.4	624.5	568.6
Non-Guarantor Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Sales									46.3	34.9	29.6
Cost of sales									(7.5)	(2.6)	(0.2)
Gross margin									38.8	32.3	29.4
Selling, general and administrative expenses									(0.7)	0.8	0.8
Other operating income, net									2.9	(0.3)	(0.4)
Operating (loss) income									41.0	32.8	29.8
Intercompany interest (expense) income									34.5	41.1	43.0
Interest expense, net									(0.1)	0.1	(0.1)
(Loss) income before income taxes									75.4	74.0	72.7
Income taxes									(1.7)	(1.2)	(3.9)
Equity in income of subsidiaries									301.3	295.1	269.4
Net income									375.0	367.9	338.2
Eliminations
Condensed Financial Statements, Captions [Line Items]
Equity in income of subsidiaries									(1,016.4)	(992.4)	(906.8)
Net income									$ (1,016.4)	$ (992.4)	$ (906.8)

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Changes in Accumulated OCI by Component and Reclassifications Out of Accumulated OCI (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Feb. 01, 2014	Feb. 02, 2013	Jan. 28, 2012
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ (175.7)	$ (159.2)	$ (170.8)
OCI before reclassifications	(10.1)	(3.3)	26.5
Amounts reclassified from accumulated OCI	7.3	(13.2)	(14.9)
After-tax amount, Total other comprehensive (loss) income	(2.8)	(16.5)	11.6
Ending balance	(178.5)	(175.7)	(159.2)
Foreign currency translation
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(149.4)	(148.9)	(145.0)
OCI before reclassifications	12.4	(0.5)	(3.9)
After-tax amount, Total other comprehensive (loss) income	12.4	(0.5)	(3.9)
Ending balance	(137.0)	(149.4)	(148.9)
Gains (losses) on cash flow hedges
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	1.0	22.1	5.9
OCI before reclassifications	(22.0)	(6.7)	32.2
Amounts reclassified from accumulated OCI	6.7	(14.4)	(16.0)
After-tax amount, Total other comprehensive (loss) income	(15.3)	(21.1)	16.2
Ending balance	(14.3)	1.0	22.1
Pension Plans | Accumulated Defined Benefit Plans Adjustment Actuarial Net Gain Loss
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(44.4)	(51.5)	(46.0)
OCI before reclassifications	0.2	4.7	(7.3)
Amounts reclassified from accumulated OCI	1.7	2.4	1.8
After-tax amount, Total other comprehensive (loss) income	1.9	7.1	(5.5)
Ending balance	(42.5)	(44.4)	(51.5)
Pension Plans | Accumulated Defined Benefit Plans Adjustment, Net Prior Service Cost (Credit)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	17.1	19.1	14.3
OCI before reclassifications	(0.7)	(0.8)	5.5
Amounts reclassified from accumulated OCI	(1.1)	(1.2)	(0.7)
After-tax amount, Total other comprehensive (loss) income	(1.8)	(2.0)	4.8
Ending balance	$ 15.3	$ 17.1	$ 19.1

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Other Assets (Detail) (USD $) In Millions, unless otherwise specified	Feb. 01, 2014	Feb. 02, 2013
Other Assets
Deferred extended service plan costs	$ 61.9	$ 56.9
Goodwill	26.8	24.6
Other assets	25.3	18.4
Total other assets	$ 114.0	$ 99.9

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Allowance for Credit Losses On US Customer In-House Finance Receivables (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Feb. 01, 2014	Feb. 02, 2013	Jan. 28, 2012
Financing Receivable, Allowance for Credit Losses [Line Items]
Ending balance	$ (97.8)	$ (87.7)	$ (78.1)
Ending receivable balance evaluated for impairment	1,453.8	1,280.6	1,155.5
Accounts receivable, net	1,374.0	1,205.3
US Customer In-House Finance Receivables
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	(87.7)	(78.1)	(67.8)
Charge-offs	128.2	112.8	92.8
Recoveries	26.0	21.8	19.3
Provision	(164.3)	(144.2)	(122.4)
Ending balance	(97.8)	(87.7)	(78.1)
Ending receivable balance evaluated for impairment	1,453.8	1,280.6	1,155.5
Accounts receivable, net	$ 1,356.0	$ 1,192.9	$ 1,077.4

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Summary of Goodwill by Reporting Unit (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Feb. 01, 2014		Feb. 02, 2013
Goodwill [Line Items]
Beginning balance	$ 24.6
Acquisition	2.2	[1]	24.6	[1]
Ending balance	26.8		24.6
US
Goodwill [Line Items]
Beginning balance	24.6
Acquisition	(1.4)	[1]	24.6	[1]
Ending balance	23.2		24.6
Other
Goodwill [Line Items]
Acquisition	3.6	[1]
Ending balance	$ 3.6

[1] See Note 14 for additional discussion of the goodwill recorded by the Company during Fiscal 2014 and Fiscal 2013.

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Reclassification Activity by Individual Accumulated OCI Component (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Feb. 01, 2014		Feb. 02, 2013		Jan. 28, 2012
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
(Gains) losses on cash flow hedges reclassification, before tax	$ 11.1		$ (22.4)		$ (24.6)
(Gains) losses on cash flow hedges reclassification, tax expense	(4.4)		8.0		8.6
(Gains) losses on cash flow hedges reclassification, net of tax	6.7		(14.4)		(16.0)
Defined benefit plan reclassification, before tax	0.8		1.6		1.6
Defined benefit plan reclassification, tax expense	(0.2)		(0.4)		(0.5)
Defined benefit plan reclassification, net of tax	0.6		1.2		1.1
Total reclassifications, net of tax	7.3		(13.2)		(14.9)
Foreign Exchange Contract | Cost of Sales
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
(Gains) losses on cash flow hedges reclassification, before tax	(0.9)		(0.4)		(0.1)
Commodity Contract | Cost of Sales
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
(Gains) losses on cash flow hedges reclassification, before tax	12.0		(22.0)		(24.5)
Prior Service Credit | Selling, General and Administrative Expenses
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Defined benefit plan reclassification, before tax	(1.5)	[1]	(1.6)	[1]	(1.0)	[1]
Pension Plan Actuarial (Losses)/Gains | Selling, General and Administrative Expenses
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Defined benefit plan reclassification, before tax	$ 2.3	[1]	$ 3.2	[1]	$ 2.6	[1]

[1] These items are included in the computation of net periodic pension benefit (cost). See Note 20 for additional information.

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Earnings Per Share, Basic And Diluted (Detail) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Feb. 01, 2014	Nov. 02, 2013	Aug. 03, 2013	May 04, 2013	Feb. 02, 2013	Oct. 27, 2012	Jul. 28, 2012	Apr. 28, 2012	Feb. 01, 2014	Feb. 02, 2013	Jan. 28, 2012
Earnings Per Share [Abstract]
Net income	$ 175.2	$ 33.6	$ 67.4	$ 91.8	$ 171.8	$ 34.9	$ 70.7	$ 82.5	$ 368.0	$ 359.9	$ 324.4
Basic weighted average number of shares outstanding									80.2	82.3	86.2
Dilutive effect of share awards									0.5	0.5	0.8
Diluted weighted average number of shares outstanding									80.7	82.8	87.0
Earnings per share - basic	$ 2.20	$ 0.42	$ 0.84	$ 1.14	$ 2.13	$ 0.43	$ 0.86	$ 0.96	$ 4.59	$ 4.37	$ 3.76
Earnings per share - diluted	$ 2.18	$ 0.42	$ 0.84	$ 1.13	$ 2.12	$ 0.43	$ 0.85	$ 0.96	$ 4.56	$ 4.35	$ 3.73

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Loans, Overdrafts and Long-Term Debt

12 Months Ended

Feb. 01, 2014

Loans, Overdrafts and Long-Term Debt

18. Loans, overdrafts and long-term debt

Loans and overdrafts

(in millions)	February 1, 2014		February  2, 2013
Current liabilities – loans and overdrafts
Revolving credit facility	$	—	$	—
Bank overdrafts		19.3		—
Total loans and overdrafts	$	19.3	$	—

Revolving credit facility

On May 24, 2011, Signet Jewelers Limited and certain of its subsidiaries as “Borrowers” entered into a $400 million senior unsecured multi-currency five year revolving credit agreement (the “Credit Agreement”) with various financial institutions as the lenders (the “Lenders”), JPMorgan Chase Bank, N.A., as Administrative Agent, Barclays Capital, as Syndication Agent, and JPMorgan Securities LLC and Barclays Capital as the joint lead arrangers. Borrowings under the Credit Agreement may be used for working capital and general corporate purposes. The Company has guaranteed the obligations of the Borrowers under the Credit Agreement and is also directly bound by certain of the covenants contained in the Credit Agreement.

Under the Credit Agreement, the Borrowers are able to borrow from time to time in an aggregate amount up to $400 million, including issuing letters of credit in an aggregate amount at any time outstanding not to exceed $100 million. The Credit Agreement contains an expansion option that, with the consent of the Lenders or the addition of new lenders, and subject to certain conditions, availability under the Credit Agreement may be increased by an additional $200 million at the request of the Borrowers. The Credit Agreement has a five year term and matures in May 2016, at which time all amounts outstanding under the Credit Agreement will be due and payable.

Borrowings under the Credit Agreement bear interest, at the Borrowers’ option, at either a base rate (as defined in the Credit Agreement), or an adjusted LIBOR (a “Eurocurrency Borrowing”), in each case plus an applicable margin rate based on the Company’s “Fixed Charge Coverage Ratio” (as defined in the Credit Agreement). Interest is payable on the last day of each March, June, September and December, or at the end of each interest period for a Eurocurrency Borrowing, but not less often than every three months. Commitment fee rates range from 0.20% to 0.35% based on the Company’s Fixed Charge Coverage Ratio and are payable quarterly in arrears and on the date of termination or expiration of commitments.

The Credit Agreement limits the ability of the Company and certain of its subsidiaries to, among other things and subject to certain baskets and exceptions contained therein, incur debt, create liens on assets, make investments outside of the ordinary course of business, sell assets outside of the ordinary course of business, enter into merger transactions and enter into unrelated businesses. The Credit Agreement permits the making of dividend payments and stock repurchases so long as the Company (i) is not in default under the Credit Agreement, or (ii) if in default at the time of making such dividend payment or stock repurchase, has no loans outstanding under the Credit Agreement or more than $10 million in letters of credit issued under the Credit Agreement. The Credit Agreement also contains various customary representations and warranties, financial reporting requirements and other affirmative and negative covenants. The Credit Agreement requires that the Company maintain at all times a “Leverage Ratio” (as defined in the Credit Agreement) to be no greater than 2.50 to 1.00 and a “Fixed Charge Coverage Ratio” (as defined in the Credit Agreement) to be no less than 1.40 to 1.00, both determined as of the end of each fiscal quarter of the Company for the trailing four quarters. As of February 1, 2014 and February 2, 2013, Signet was in compliance with all debt covenants.

The commitments may be terminated and amounts outstanding under the Credit Agreement may be accelerated upon the occurrence of certain events of default as set forth in the Credit Agreement. These include failure to make principal or interest payments when due, certain insolvency or bankruptcy events affecting the Company or certain of its subsidiaries and breaches of covenants and representations or warranties.

No borrowings were drawn on the facility as of February 1, 2014 and February 2, 2013. Stand-by letters of credit of $10.1 million were drawn on the facility at February 1, 2014 (February 2, 2013: $9.5 million), with no significant intra-period fluctuations.

As of February 1, 2014, there were $19.3 million in overdrafts, which represents issued and outstanding checks where there are no bank balances with the right to offset. There were no overdrafts as of February 2, 2013.

Capitalized fees

Capitalized amendment fees for the Credit Agreement were $2.1 million, with $1.2 million and $0.8 million of accumulated amortization as of February 1, 2014 and February 2, 2013, respectively. In Fiscal 2014, $0.4 million was charged to the income statement (Fiscal 2013: $0.4 million; Fiscal 2012: $1.9 million). In Fiscal 2012, $0.2 million of the capitalized balance was amortized as it related to the 2008 Facility. Following the effectiveness of the new Credit Agreement, the remaining $1.3 million of capitalized fees for the 2008 Facility were written off.

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Deferred Revenue (Tables)

12 Months Ended

Feb. 01, 2014

Deferred Revenue

Deferred revenue is comprised primarily of extended service plans (“ESP”) and voucher promotions and other as follows:

	February 1, 2014		February 2, 2013
(in millions)
ESP deferred revenue	$	601.2	$	549.7
Voucher promotions and other		15.5		15.9
Total deferred revenue	$	616.7	$	565.6
Disclosed as:
Current liabilities	$	173.0	$	159.7
Non-current liabilities		443.7		405.9
Total deferred revenue	$	616.7	$	565.6

Warranty Deferred Revenue

ESP deferred revenue

	Balance at beginning of period		Plans sold		Revenue recognized			Balance at end of period
(in millions)
Fiscal 2012	$	481.1	$	187.0	$	(156.4	)	$	511.7
Fiscal 2013		511.7		205.1		(167.1	)		549.7
Fiscal 2014		549.7		223.3		(171.8	)		601.2

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Accumulated other comprehensive income (loss) (Tables)

12 Months Ended

Feb. 01, 2014

Changes in Accumulated OCI by Component and Reclassifications Out of Accumulated OCI

The following tables present the changes in accumulated OCI by component and the reclassifications out of accumulated OCI:

							Pension plan
	Foreign currency translation			Gains (losses) on cash flow hedges			Actuarial (losses) gains			Prior service credit (cost)			Accumulated other comprehensive (loss) income
(in millions)
Balance at January 29, 2011	$	(145.0	)	$	5.9		$	(46.0	)	$	14.3		$	(170.8	)
OCI before reclassifications		(3.9	)		32.2			(7.3	)		5.5			26.5
Amounts reclassified from accumulated OCI		—			(16.0	)		1.8			(0.7	)		(14.9	)
Net current-period OCI		(3.9	)		16.2			(5.5	)		4.8			11.6
Balance at January 28, 2012		(148.9	)		22.1			(51.5	)		19.1			(159.2	)
OCI before reclassifications		(0.5	)		(6.7	)		4.7			(0.8	)		(3.3	)
Amounts reclassified from accumulated OCI		—			(14.4	)		2.4			(1.2	)		(13.2	)
Net current-period OCI		(0.5	)		(21.1	)		7.1			(2.0	)		(16.5	)
Balance at February 2, 2013		(149.4	)		1.0			(44.4	)		17.1			(175.7	)
OCI before reclassifications		12.4			(22.0	)		0.2			(0.7	)		(10.1	)
Amounts reclassified from accumulated OCI		—			6.7			1.7			(1.1	)		7.3
Net current-period OCI		12.4			(15.3	)		1.9			(1.8	)		(2.8	)
Balance at February 1, 2014	$	(137.0	)	$	(14.3	)	$	(42.5	)	$	15.3		$	(178.5	)

Reclassification Out of Accumulated OCI

The amounts reclassified from accumulated OCI were as follows:

Reclassification activity by individual accumulated OCI component:	Fiscal 2014			Fiscal 2013			Fiscal 2012			Income statement caption
	Amounts reclassified from accumulated OCI			Amounts reclassified from accumulated OCI			Amounts reclassified from accumulated OCI
(in millions)
(Gains) losses on cash flow hedges:
Foreign currency contracts	$	(0.9	)	$	(0.4	)	$	(0.1	)	Cost of sales (see Note 19)
Commodity contracts		12.0			(22.0	)		(24.5	)	Cost of sales (see Note 19)
Total before income tax		11.1			(22.4	)		(24.6	)
		(4.4	)		8.0			8.6		Income taxes
Net of tax		6.7			(14.4	)		(16.0	)
Defined benefit pension plan items:
Amortization of unrecognized net prior service credit		(1.5	)		(1.6	)		(1.0	)	Selling, general and administrative expenses(1)
Amortization of unrecognized actuarial loss		2.3			3.2			2.6		Selling, general and administrative expenses(1)
Total before income tax		0.8			1.6			1.6
		(0.2	)		(0.4	)		(0.5	)	Income taxes
Net of tax		0.6			1.2			1.1
Total reclassifications, net of tax	$	7.3		$	(13.2	)	$	(14.9	)

(1) These items are included in the computation of net periodic pension benefit (cost). See Note 20 for additional information.

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Dividends - Additional Information (Detail) (Common Shares, USD $)	12 Months Ended
	Feb. 01, 2014
Common Shares
Dividends Payable [Line Items]
Dividend value per share	$ 0.18
Dividend declared date	Mar. 26, 2014
Dividend payable date	May 28, 2014
Dividend record date	May 02, 2014
Ex-dividend date	Apr. 30, 2014

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Deferred Revenue (Detail) (USD $) In Millions, unless otherwise specified	Feb. 01, 2014	Feb. 02, 2013	Jan. 28, 2012	Jan. 28, 2011
Deferred Revenue Arrangement [Line Items]
ESP deferred revenue	$ 601.2	$ 549.7	$ 511.7	$ 481.1
Voucher promotions and other	15.5	15.9
Total deferred revenue	616.7	565.6
Deferred revenue, current liabilities	173.0	159.7
Deferred revenue, non-current liabilities	443.7	405.9
Total deferred revenue	$ 616.7	$ 565.6

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Other Operating Income, Net (Tables)

12 Months Ended

Feb. 01, 2014

Other Operating Income

	Fiscal 2014		Fiscal 2013		Fiscal 2012
(in millions)
Interest income from in-house customer finance programs	$	186.4	$	159.7	$	125.4
Other		0.3		1.7		1.1
Other operating income, net	$	186.7	$	161.4	$	126.5

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Loans, Overdrafts and Long-Term Debt (Tables)

12 Months Ended

Feb. 01, 2014

Summary of Loans, Overdrafts and Long-Term Debt

Loans and overdrafts

(in millions)	February 1, 2014		February  2, 2013
Current liabilities – loans and overdrafts
Revolving credit facility	$	—	$	—
Bank overdrafts		19.3		—
Total loans and overdrafts	$	19.3	$	—

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Income Taxes - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Feb. 01, 2014	Feb. 02, 2013	Jan. 28, 2012	Jan. 28, 2011
Income Tax Disclosure [Abstract]
Statutory rate of corporation tax in Bermuda	0.00%
Foreign gross capital loss carry forwards	$ 74.2	$ 71.0
Change in valuation allowance	0.7	3.6	1.5
Unrecognized tax benefits	4.6	4.5	4.8	9.0
Interest recognized in income tax expense	0.1	(0.2)	(0.1)
Accrued interest related to unrecognized tax benefits	$ 0.3	$ 0.2	$ 0.4
US
Income Tax Disclosure [Abstract]
Tax years subject to examination	Tax years after November 1, 2008
UNITED KINGDOM
Income Tax Disclosure [Abstract]
Tax years subject to examination	Tax years after January 31, 2012

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Summary of Funded Status of Plan (Detail) (UK Plan, USD $) In Millions, unless otherwise specified	12 Months Ended
	Feb. 01, 2014	Feb. 02, 2013	Jan. 28, 2012
UK Plan
Change in benefit obligation:
Benefit obligation at beginning of year	$ 212.6	$ 204.5
Service cost	2.4	3.6	4.8
Past service cost	0.9	1.1
Interest cost	9.3	9.5	10.7
Members' contributions	0.7	0.5
Actuarial loss (gain)	(0.1)	4.3
Benefits paid	(9.3)	(10.9)
Foreign currency changes	9.8
Benefit obligation at end of year	226.3	212.6	204.5
Funded status at end of year: UK Plan assets less benefit obligation	$ 56.3	$ 48.5

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Segment Information - Additional Information (Detail)	12 Months Ended
	Feb. 01, 2014 Segment
Segment Reporting Information [Line Items]
Number of geographic operating segments managed	2

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Property, Plant And Equipment, Net (Tables)

12 Months Ended

Feb. 01, 2014

Property, Plant and Equipment, Net

	February 1, 2014			February 2, 2013
(in millions)
Land and buildings	$	37.2		$	32.5
Leasehold improvements		461.4			419.3
Furniture and fixtures		537.3			503.4
Equipment, including software		221.1			183.8
Construction in progress		18.7			15.5
Total	$	1,275.7		$	1,154.5
Accumulated depreciation and amortization		(788.1	)		(724.1	)
Property, plant and equipment, net	$	487.6		$	430.4

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Segment information

12 Months Ended

Feb. 01, 2014

Segment information

2. Segment information

Effective with the fourth quarter of Fiscal 2014, management changed the Company’s segment reporting in order to align with a change in its organizational and management reporting structure. Signet’s sales are derived from the retailing of jewelry, watches, other products and services. Signet has identified two geographical reportable segments, being the US and UK divisions. These segments represent channels of distribution that offer similar merchandise and services and have similar marketing and distribution strategies. Both divisions are managed by executive committees, which report to Signet’s Chief Executive Officer, who reports to the Board. Each divisional executive committee is responsible for operating decisions within parameters set by the Board. The performance of each segment is regularly evaluated based on sales and operating income.

In the fourth quarter of Fiscal 2014, subsequent to the November 4, 2013 acquisition of a diamond polishing factory in Gaborone, Botswana, management established the Other operating segment which consists of all non-reportable segments including subsidiaries involved in the purchasing and conversion of rough diamonds to polished stones. This segment was determined to be non-reportable and will be aggregated with corporate administrative functions for segment reporting. Prior year results have been revised to reflect this change. All inter-segment sales and transfers are eliminated.

	Fiscal 2014			Fiscal 2013			Fiscal 2012
(in millions)
Sales:
US	$	3,517.6		$	3,273.9		$	3,034.1
UK		685.6			709.5			715.1
Other		6.0			—			—
Total sales	$	4,209.2		$	3,983.4		$	3,749.2
Operating income (loss):
US	$	553.2		$	547.8		$	478.0
UK		42.4			40.0			56.1
Other		(25.1	)		(27.3	)		(26.7	)
Total operating income	$	570.5		$	560.5		$	507.4
Depreciation and amortization:
US	$	88.8		$	75.9		$	69.0
UK		21.4			23.5			23.4
Other		—			—			—
Total depreciation and amortization	$	110.2		$	99.4		$	92.4
Capital additions:
US	$	134.2		$	110.9		$	75.6
UK		18.4			23.1			22.2
Other		0.1			0.2			—
Total capital additions	$	152.7		$	134.2		$	97.8
	February 1, 2014			February 2, 2013			January 28, 2012
(in millions)
Total assets:
US	$	3,311.0		$	2,979.2		$	2,747.5
UK		484.6			449.9			427.3
Other		233.6			289.9			436.6
Total assets	$	4,029.2		$	3,719.0		$	3,611.4
Total long-lived assets:
US	$	423.6		$	377.5		$	305.8
UK		81.1			76.8			77.0
Other		9.7			0.7			0.6
Total long-lived assets	$	514.4		$	455.0		$	383.4
Total liabilities:
US	$	1,299.3		$	1,243.4		$	1,166.3
UK		139.3			116.9			146.2
Other		27.5			28.8			19.8
Total liabilities	$	1,466.1		$	1,389.1		$	1,332.3

Sales by product

	Fiscal 2014		Fiscal 2013		Fiscal 2012
(in millions)
Diamonds and diamond jewelry	$	2,552.1	$	2,410.7	$	2,183.3
Gold, silver jewelry, other products and services		1,236.9		1,116.5		1,133.5
Watches		420.2		456.2		432.4
Total sales	$	4,209.2	$	3,983.4	$	3,749.2

Sales to any individual customer were not significant to Signet’s consolidated sales.

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Summary of Assumptions Used to Determine Benefit Obligations (Detail) (UK Plan)	12 Months Ended
	Feb. 01, 2014	Feb. 02, 2013
UK Plan
Defined Benefit Plan Disclosure [Line Items]
Discount rate, benefit obligations	4.40%	4.50%
Salary increases, benefit obligations	3.00%	3.20%
Discount rate, periodic pension costs	4.50%	4.70%
Expected return on UK Plan assets, periodic pension costs	5.00%	4.75%
Salary increases, periodic pension costs	3.20%	3.20%

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Segment Reporting Information, by Segment (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended								12 Months Ended
	Feb. 01, 2014	Nov. 02, 2013	Aug. 03, 2013	May 04, 2013	Feb. 02, 2013	Oct. 27, 2012	Jul. 28, 2012	Apr. 28, 2012	Feb. 01, 2014	Feb. 02, 2013	Jan. 28, 2012
Segment Reporting Information [Line Items]
Total sales	$ 1,564.0	$ 771.4	$ 880.2	$ 993.6	$ 1,513.3	$ 716.2	$ 853.9	$ 900.0	$ 4,209.2	$ 3,983.4	$ 3,749.2
Total operating income									570.5	560.5	507.4
Total depreciation and amortization									110.2	99.4	92.4
Total capital additions									152.7	134.2	97.8
Total assets	4,029.2				3,719.0				4,029.2	3,719.0	3,611.4
Total long-lived assets	514.4				455.0				514.4	455.0	383.4
Total liabilities	1,466.1				1,389.1				1,466.1	1,389.1	1,332.3
Operating Segments
Segment Reporting Information [Line Items]
Total sales									4,209.2	3,983.4	3,749.2
Operating Segments | US
Segment Reporting Information [Line Items]
Total sales									3,517.6	3,273.9	3,034.1
Total operating income									553.2	547.8	478.0
Total depreciation and amortization									88.8	75.9	69.0
Total capital additions									134.2	110.9	75.6
Total assets	3,311.0				2,979.2				3,311.0	2,979.2	2,747.5
Total long-lived assets	423.6				377.5				423.6	377.5	305.8
Total liabilities	1,299.3				1,243.4				1,299.3	1,243.4	1,166.3
Operating Segments | UNITED KINGDOM
Segment Reporting Information [Line Items]
Total sales									685.6	709.5	715.1
Total operating income									42.4	40.0	56.1
Total depreciation and amortization									21.4	23.5	23.4
Total capital additions									18.4	23.1	22.2
Total assets	484.6				449.9				484.6	449.9	427.3
Total long-lived assets	81.1				76.8				81.1	76.8	77.0
Total liabilities	139.3				116.9				139.3	116.9	146.2
Operating Segments | Other
Segment Reporting Information [Line Items]
Total sales									6.0
Total operating income									(25.1)	(27.3)	(26.7)
Total capital additions									0.1	0.2
Total assets	233.6				289.9				233.6	289.9	436.6
Total long-lived assets	9.7				0.7				9.7	0.7	0.6
Total liabilities	$ 27.5				$ 28.8				$ 27.5	$ 28.8	$ 19.8

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Share Based Compensation - Additional Information (Detail) (USD $) In Millions, except Share data, unless otherwise specified	1 Months Ended		12 Months Ended
	Jan. 19, 2011	Sep. 29, 2010	Feb. 01, 2014	Feb. 02, 2013	Jan. 28, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense			$ 14.4	$ 15.7	$ 17.0
Omnibus Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			3 years
Maximum common shares issued			7,000,000
Period in which performance criteria measured			3 years
Executive Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum common shares issued			8,568,841
Period in which performance criteria measured			3 years
Maximum percentage of shares to be granted over any 10 year period			10.00%
Maximum percentage of shares to be granted over 10 year period including discretionary option plans			5.00%
Share based compensation plan period			10
Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense			0.4	1.9	4.4
Issuance of new shares		289,554
Shares granted under share based compensation, value		$ 12.5
Number of shares vested	116,392		61,127	92,083
Chief Executive Officer | Shares Vested Year Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares expected to vest over next twelve months			19,952

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Supplemental Condensed Consolidated Balance Sheet (Detail) (USD $) In Millions, unless otherwise specified	Feb. 01, 2014	Feb. 02, 2013	Jan. 28, 2012	Jan. 28, 2011
Current assets:
Cash and cash equivalents	$ 247.6	$ 301.0	$ 486.8	$ 302.1
Accounts receivable, net	1,374.0	1,205.3
Other receivables	51.5	42.1
Other current assets	87.0	85.6
Deferred tax assets	3.0	1.6
Income taxes	6.5	3.5
Inventories	1,488.0	1,397.0
Total current assets	3,257.6	3,036.1
Non-current assets:
Property, plant and equipment, net	487.6	430.4
Other assets	114.0	99.9
Deferred tax assets	113.7	104.1
Retirement benefit asset	56.3	48.5
Total assets	4,029.2	3,719.0	3,611.4
Current liabilities:
Loans and overdrafts	19.3
Accounts payable	162.9	155.9
Accrued expenses and other current liabilities	328.5	326.4
Deferred revenue	173.0	159.7
Deferred tax liabilities	113.1	129.6
Income taxes	103.9	100.3
Total current liabilities	900.7	871.9
Non-current liabilities:
Other liabilities	121.7	111.3
Deferred revenue	443.7	405.9
Total liabilities	1,466.1	1,389.1	1,332.3
Total shareholders' equity	2,563.1	2,329.9	2,279.1	1,939.0
Total liabilities and shareholders' equity	4,029.2	3,719.0
Signet Jewelers Limited
Current assets:
Cash and cash equivalents	1.4	13.4	6.1	9.8
Intercompany receivables, net	47.7	37.3
Other current assets		0.2
Total current assets	49.1	50.9
Non-current assets:
Investment in subsidiaries	2,526.3	2,288.9
Total assets	2,575.4	2,339.8
Current liabilities:
Accrued expenses and other current liabilities	12.3	9.9
Total current liabilities	12.3	9.9
Non-current liabilities:
Total liabilities	12.3	9.9
Total shareholders' equity	2,563.1	2,329.9
Total liabilities and shareholders' equity	2,575.4	2,339.8
Guarantor Subsidiaries
Current assets:
Cash and cash equivalents	237.0	271.3	471.6	275.0
Accounts receivable, net	1,361.3	1,198.8
Other receivables	51.1	41.8
Other current assets	86.5	85.0
Deferred tax assets	2.8	1.1
Income taxes	6.0	3.5
Inventories	1,434.5	1,360.9
Total current assets	3,179.2	2,962.4
Non-current assets:
Property, plant and equipment, net	481.5	429.7
Investment in subsidiaries	1,452.8	1,335.3
Other assets	110.4	99.9
Deferred tax assets	113.6	104.1
Retirement benefit asset	56.3	48.5
Total assets	5,393.8	4,979.9
Current liabilities:
Loans and overdrafts	19.3
Accounts payable	160.5	160.0
Intercompany payables, net	285.7	753.1
Accrued expenses and other current liabilities	313.1	312.3
Deferred revenue	173.0	159.7
Deferred tax liabilities	113.1	129.6
Income taxes	101.3	95.9
Total current liabilities	1,166.0	1,610.6
Non-current liabilities:
Intercompany payables, net	1,098.0	600.0
Other liabilities	118.5	106.1
Deferred revenue	443.7	405.9
Total liabilities	2,826.2	2,722.6
Total shareholders' equity	2,567.6	2,257.3
Total liabilities and shareholders' equity	5,393.8	4,979.9
Non-Guarantor Subsidiaries
Current assets:
Cash and cash equivalents	9.2	16.3	9.1	17.3
Accounts receivable, net	12.7	6.5
Intercompany receivables, net	238.0	715.8
Other receivables	0.4	0.3
Other current assets	0.5	0.4
Deferred tax assets	0.2	0.5
Income taxes	0.5
Inventories	53.5	36.1
Total current assets	315.0	775.9
Non-current assets:
Property, plant and equipment, net	6.1	0.7
Investment in subsidiaries	1,143.2	1,039.3
Intercompany receivables, net	1,098.0	600.0
Other assets	3.6
Deferred tax assets	0.1
Total assets	2,566.0	2,415.9
Current liabilities:
Accounts payable	2.4	(4.1)
Accrued expenses and other current liabilities	3.1	4.2
Income taxes	2.6	4.4
Total current liabilities	8.1	4.5
Non-current liabilities:
Other liabilities	3.2	5.2
Total liabilities	11.3	9.7
Total shareholders' equity	2,554.7	2,406.2
Total liabilities and shareholders' equity	2,566.0	2,415.9
Eliminations
Current assets:
Intercompany receivables, net	(285.7)	(753.1)
Total current assets	(285.7)	(753.1)
Non-current assets:
Investment in subsidiaries	(5,122.3)	(4,663.5)
Intercompany receivables, net	(1,098.0)	(600.0)
Total assets	(6,506.0)	(6,016.6)
Current liabilities:
Intercompany payables, net	(285.7)	(753.1)
Total current liabilities	(285.7)	(753.1)
Non-current liabilities:
Intercompany payables, net	(1,098.0)	(600.0)
Total liabilities	(1,383.7)	(1,353.1)
Total shareholders' equity	(5,122.3)	(4,663.5)
Total liabilities and shareholders' equity	$ (6,506.0)	$ (6,016.6)

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Cash and cash equivalents (Tables)

12 Months Ended

Feb. 01, 2014

Cash And Cash Equivalents

	February 1, 2014		February 2, 2013
(in millions)
Cash and cash equivalents held in money markets and other accounts	$	225.3	$	276.6
Cash equivalents from third-party credit card issuers		21.1		23.2
Cash on hand		1.2		1.2
Total cash and cash equivalents	$	247.6	$	301.0

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Commitments and Contingencies

12 Months Ended

Feb. 01, 2014

Commitments and Contingencies

22. Commitments and contingencies

Operating leases

Signet occupies certain properties and holds machinery and vehicles under operating leases; it does not have any capital leases.

Rental expense for operating leases is as follows:

	Fiscal 2014			Fiscal 2013			Fiscal 2012
(in millions)
Minimum rentals	$	323.7		$	316.0		$	311.7
Contingent rent		11.1			7.8			9.8
Sublease income		(0.9	)		(2.9	)		(5.1	)
Total	$	333.9		$	320.9		$	316.4

The future minimum operating lease payments for operating leases having initial or non-cancelable terms in excess of one year are as follows:

(in millions)
Fiscal 2015	$	311.1
Fiscal 2016		275.4
Fiscal 2017		245.8
Fiscal 2018		212.6
Fiscal 2019		181.8
Thereafter		937.7
Total	$	2,164.4

Signet has entered into certain sale and leaseback transactions of certain properties. Under these transactions it continues to occupy the space in the normal course of business. Gains on the transactions are deferred and recognized as a reduction of rent expense over the life of the operating lease.

Contingent property liabilities

Approximately 44 UK property leases had been assigned by Signet at February 1, 2014 (and remained unexpired and occupied by assignees at that date) and approximately 19 additional properties were sub-let at that date. Should the assignees or sub-tenants fail to fulfill any obligations in respect of those leases or any other leases which have at any other time been assigned or sub-let, Signet or one of its UK subsidiaries may be liable for those defaults. The number of such claims arising to date has been small, and the liability, which is charged to the income statement as it arises, has not been material.

Capital commitments

At February 1, 2014 Signet has committed to spend $42.3 million (February 2, 2013: $33.6 million) related to capital commitments. These commitments principally relate to the expansion and renovation of stores.

Legal proceedings

As previously reported, in March 2008, a group of private plaintiffs (the “Claimants”) filed a class action lawsuit for an unspecified amount against Sterling Jewelers Inc. (“Sterling”), a subsidiary of Signet, in the U.S. District Court for the Southern District of New York alleging that US store-level employment practices are discriminatory as to compensation and promotional activities with respect to gender. In June 2008, the District Court referred the matter to private arbitration where the Claimants sought to proceed on a class-wide basis. Discovery has been completed. The Claimants filed a motion for class certification and Sterling opposed the motion. A hearing on the class certification motion was held in late February 2014. The motion is now pending before the Arbitrator.

Also as previously reported, on September 23, 2008, the U.S. Equal Employment Opportunity Commission (“EEOC”) filed a lawsuit against Sterling in the U.S. District Court for the Western District of New York. The EEOC’s lawsuit alleges that Sterling engaged in intentional and disparate impact gender discrimination with respect to pay and promotions of female retail store employees from January 1, 2003 to the present. The EEOC asserts claims for unspecified monetary relief and non-monetary relief against the Company on behalf of a class of female employees subjected to these alleged practices. Non-expert fact discovery closed in mid-May 2013. In September 2013, Sterling made a motion for partial summary judgment on procedural grounds, which was referred to a Magistrate Judge. The Magistrate Judge heard oral arguments on the summary judgment motion in December 2013. On January 2, 2014, the Magistrate Judge issued his Report, Recommendation and Order, recommending that the Court grant Sterling’s motion for partial summary judgment and dismiss the EEOC’s claims in their entirety. The EEOC filed its objections to the Magistrate Judge’s ruling and Sterling filed its response thereto. The District Court Judge heard oral arguments on the EEOC’s objections to the Magistrate Judge’s ruling on March 7, 2014 and on March 10, 2014 entered an order dismissing the action with prejudice. The EEOC has until May 12, 2014 to appeal the District Court Judge’s dismissal of the action to United States Court of Appeals for the Second Circuit.

Sterling denies the allegations of both parties and has been defending these cases vigorously. At this point, no outcome or amount of loss is able to be estimated.

In the ordinary course of business, Signet may be subject, from time to time, to various other proceedings, lawsuits, disputes or claims incidental to its business, which the Company believe are not significant to Signet’s consolidated financial position, results of operations or cash flows.

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Common shares, treasury shares and reserves

12 Months Ended

Feb. 01, 2014

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 $9.3 million (Fiscal 2013: $21.6 million; Fiscal 2012: $10.6 million).

Treasury shares

Treasury shares represent the cost of shares that the Company purchased in the market under the applicable authorized 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 in treasury by the Company at February 1, 2014 was 6,954,596. In Fiscal 2014, the Company repurchased 1,557,673 shares under authorized repurchase programs, while reissuing 437,913 shares, net of taxes and forfeitures, to satisfy awards outstanding under existing share based compensation plans. In Fiscal 2013, the Company repurchased 6,425,296 shares under authorized repurchase programs, 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 authorized repurchase programs and 18,897 shares were forfeited under the Omnibus Incentive Plan.

Share repurchase

Signet may from time to time repurchase common shares under various share repurchase programs authorized by Signet’s Board. Repurchases may be made in the open market, through block trades or otherwise. The timing, manner, price and amount of any repurchases will be determined by the Company in its discretion, and will be subject to economic and market conditions, stock prices, applicable legal requirements and other factors. The repurchase programs are funded through Signet’s existing cash reserves and liquidity sources. Repurchased shares are being held as treasury shares and may be used by Signet for general corporate purposes. Share repurchase activity is as follows:

			Fiscal 2014						Fiscal 2013						Fiscal 2012
	Amount authorized		Shares repurchased		Amount repurchased		Average repurchase price per share		Shares repurchased		Amount repurchased		Average repurchase price per share		Shares repurchased		Amount repurchased		Average repurchase price per share
	(in millions)				(in millions)						(in millions)						(in millions)
2013 Program(1)	$	350.0		808,428	$	54.6	$	67.54		na		na		na		na		na		na
2011 Program(2)		350.0		749,245		50.1		66.92		6,425,296	$	287.2	$	44.70		256,241	$	12.7	$	49.57
Total				1,557,673	$	104.7	$	67.24		6,425,296	$	287.2	$	44.70		256,241	$	12.7	$	49.57

(1) On June 14, 2013, the Board the repurchase of up to $350 million of Signet’s common shares (the “2013 Program”). The 2013 Program may be suspended or discontinued at any time without notice. The 2013 Program had $295.4 million remaining as of February 1, 2014.

(2) In October 2011, the Board authorized the repurchase of up to $300 million of Signet’s common shares (the “2011 Program”), which authorization was subsequently increased to $350 million. The 2011 Program was completed as of May 4, 2013.

na Not applicable.

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.

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Lease Loss Reserve (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Feb. 01, 2014		Feb. 02, 2013
Other Liabilities Non-current
Lease loss reserve, at beginning of period	$ 8.1		$ 9.6
Adjustments, net	(1.6)		(1.1)
Utilization	(0.7)	[1]	(0.4)	[1]
Lease loss reserve, at end of period	$ 5.8		$ 8.1

[1] Including the impact of foreign exchange translation between opening and closing balance sheet dates.

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Commitments and Contingencies (Tables)

12 Months Ended

Feb. 01, 2014

Rental Expense For Operating Leases

Rental expense for operating leases is as follows:

	Fiscal 2014			Fiscal 2013			Fiscal 2012
(in millions)
Minimum rentals	$	323.7		$	316.0		$	311.7
Contingent rent		11.1			7.8			9.8
Sublease income		(0.9	)		(2.9	)		(5.1	)
Total	$	333.9		$	320.9		$	316.4

Future Minimum Operating Lease Payments

The future minimum operating lease payments for operating leases having initial or non-cancelable terms in excess of one year are as follows:

(in millions)
Fiscal 2015	$	311.1
Fiscal 2016		275.4
Fiscal 2017		245.8
Fiscal 2018		212.6
Fiscal 2019		181.8
Thereafter		937.7
Total	$	2,164.4

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Accounts receivable, net (Tables)

12 Months Ended

Feb. 01, 2014

Accounts Receivable By Portfolio Segment, Net

	February 1, 2014		February 2, 2013
(in millions)
Accounts receivable by portfolio segment, net:
US customer in-house finance receivables	$	1,356.0	$	1,192.9
Other accounts receivable		18.0		12.4
Total accounts receivable, net	$	1,374.0	$	1,205.3

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

Allowance for credit losses on US customer in-house finance receivables:

	Fiscal 2014			Fiscal 2013			Fiscal 2012
(in millions)
Beginning balance:	$	(87.7	)	$	(78.1	)	$	(67.8	)
Charge-offs		128.2			112.8			92.8
Recoveries		26.0			21.8			19.3
Provision		(164.3	)		(144.2	)		(122.4	)
Ending balance	$	(97.8	)	$	(87.7	)	$	(78.1	)
Ending receivable balance evaluated for impairment		1,453.8			1,280.6			1,155.5
US customer in-house finance receivables, net	$	1,356.0		$	1,192.9		$	1,077.4

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

Credit quality indicator and age analysis of past due US customer in-house finance receivables:

	February 1, 2014					February 2, 2013					January 28, 2012
	Gross		Valuation allowance			Gross		Valuation allowance			Gross		Valuation allowance
(in millions)
Performing:
Current, aged 0 – 30 days	$	1,170.4	$	(36.3	)	$	1,030.3	$	(33.8	)	$	932.6	$	(28.9	)
Past due, aged 31 – 90 days		229.9		(8.0	)		203.9		(7.5	)		180.2		(6.5	)
Non Performing:
Past due, aged more than 90 days		53.5		(53.5	)		46.4		(46.4	)		42.7		(42.7	)
	$	1,453.8	$	(97.8	)	$	1,280.6	$	(87.7	)	$	1,155.5	$	(78.1	)

	February 1, 2014						February 2, 2013						January 28, 2012
	Gross			Valuation allowance			Gross			Valuation allowance			Gross			Valuation allowance
(as a percentage of the ending receivable balance)
Performing		96.3	%		3.2	%		96.4	%		3.3	%		96.3	%		3.2	%
Non Performing		3.7	%		100.0	%		3.6	%		100.0	%		3.7	%		100.0	%
		100.0	%		6.7	%		100.0	%		6.8	%		100.0	%		6.8	%

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Share-based compensation

12 Months Ended

Feb. 01, 2014

Share-based compensation

23. Share-based compensation

Signet operates several share-based compensation plans which can be categorized as the “Omnibus Plan,” “Share Saving Plans,” and the “Executive Plans.”

Impact on results

Share-based compensation expense and the associated tax benefits are as follows:

	Fiscal 2014			Fiscal 2013			Fiscal 2012
(in millions)
Share-based compensation expense	$	14.4		$	15.7		$	17.0
Income tax benefit	$	(5.2	)	$	(5.4	)	$	(5.7	)

The Fiscal 2014, Fiscal 2013 and Fiscal 2012 expense includes $0.4 million, $1.9 million and $4.4 million, respectively, of share-based compensation incurred in connection with the Chief Executive Officer’s (“CEO”) employment agreement dated September 29, 2010, for amounts foregone from his former employment. Under this agreement, 289,554 shares valued at $12.5 million were granted based upon the mid-market closing price of Signet’s stock on January 18, 2011. Of the shares granted, 116,392 shares vested on January 19, 2011, 92,083 shares vested in Fiscal 2013, 61,127 shares vested in Fiscal 2014 and 19,952 shares are expected to vest in Fiscal 2015, based on the vesting schedule of his foregone awards.

Unrecognized compensation cost related to awards granted under share-based compensation plans is as follows:

	Unrecognized Compensation Cost
	Fiscal 2014		Fiscal 2013		Fiscal 2012
(in millions)
Omnibus Plan	$	14.4	$	14.6	$	16.3
Share Saving Plans		2.9		2.9		3.3
CEO Shares		—		0.4		2.3
Total	$	17.3	$	17.9	$	21.9
Weighted average period of amortization		1.8 years		1.7 years		1.6 years

As of April 2012, the Company opted to satisfy share option exercises and the vesting of restricted stock and restricted stock units (“RSUs”) under its plans with the issuance of treasury shares. Prior to April 2012, all share option exercises and award vestings were satisfied through the issuance of new shares.

Omnibus Plan

In Fiscal 2010, Signet adopted the Signet Jewelers Limited Omnibus Incentive Plan (the “Omnibus Plan”). Awards that may be granted under the Omnibus Plan include restricted stock, RSUs, stock options and stock appreciation rights. The Fiscal 2014, Fiscal 2013 and Fiscal 2012 Awards granted under the Omnibus Plan have two elements, time-based restricted stock and performance-based restricted stock units. The time-based restricted stock has a three year cliff vesting period, subject to continued employment and has the same voting rights and dividend rights as Common Shares (which are payable once the shares have vested). Performance-based restricted stock units granted in Fiscal 2012 and Fiscal 2013 vest based upon actual cumulative operating income achieved for the relevant three year performance period compared to cumulative targeted operating income metrics established in the underlying grant agreement. In Fiscal 2014, an additional performance measure was included for the performance-based restricted stock units for senior executives, to include a return on capital employed (“ROCE”) metric during the relevant three year performance period compared to target levels established in the underlying grant agreements. The relevant performance is measured over a three year vesting period from the start of the fiscal year in which the award is granted. The Omnibus Plan permits the grant of awards to employees for up to 7,000,000 Common Shares.

The significant assumptions utilized to estimate the weighted-average fair value of awards granted under the Omnibus Plan are as follows:

	Omnibus Plan
	Fiscal 2014			Fiscal 2013			Fiscal 2012
Share price(1)	$	67.39		$	47.15		$	44.33
Risk free interest rate(1)		0.3	%		0.4	%		1.4	%
Expected term(1)		2.8 years			2.9 years			2.9 years
Expected volatility(1)		41.7	%		44.2	%		45.1	%
Dividend yield(1)		1.1	%		1.2	%		0.7	%
Fair value(1)	$	66.10		$	46.12		$	43.52

(1) Weighted average.

The risk free interest rate is based on the US Treasury (for US-based award recipients) or UK Gilt (for UK-based award recipients) yield curve in effect at the grant date with remaining terms equal to the expected term of the awards. The expected term utilized is based on the contractual vesting period of the awards. The expected volatility is determined by calculating the historical volatility of Signet’s share price over the previous 10 years.

The Fiscal 2014 activity for awards granted under the Omnibus Plan is as follows:

	Omnibus  Plans(1)
	No. of shares			Weighted average grant date fair value		Weighted average remaining contractual life		Intrinsic value(2)
	millions							millions
Outstanding at February 2, 2013		1.2		$	40.86		1.1 years	$	73.1
Fiscal 2014 activity:
Granted		0.3		$	66.10
Vested		(0.4	)	$	33.62
Lapsed		(0.1	)	$	46.58
Outstanding at February 1, 2014		1.0		$	51.44		1.0 years	$	80.1

(1) Includes shares issued to the CEO, whose contract includes share based compensation for amounts foregone from his prior employment.

(2) Intrinsic value for outstanding restricted stock and RSUs is based on the fair market value of Signet’s common stock on the last business day of the fiscal year.

The following table summarizes additional information about awards granted under the Omnibus Plan:

	Fiscal 2014		Fiscal 2013		Fiscal 2012
(in millions)
Total intrinsic value of awards vested	$	25.3	$	28.5	$	0.5

Share Saving Plans

Signet has three share option savings plans (collectively “the Share Saving Plans”) available to employees as follows:

• Employee Share Savings Plan, for US employees

• Sharesave Plan, for UK employees

• Irish Sharesave Plan for Republic of Ireland employees

The Share Saving Plans are compensatory and compensation expense is recognized over the requisite service period. In any 10 year period not more than 10% of the issued Common Shares of the Company from time to time may, in aggregate, be issued or be issuable pursuant to options granted under the Share Saving Plans or any other employees share plans adopted by Signet.

The Employee Share Savings Plan is a savings plan intended to qualify under US Section 423 of the US Internal Revenue Code and allows employees to purchase Common Shares at a discount of approximately 15% to the closing price of the New York Stock Exchange on the date of grant. Options granted under the Employee Share Savings Plan vest after 24 months and are generally only exercisable between 24 and 27 months of the grant date.

The Sharesave and Irish Sharesave Plans allow eligible employees to purchase Common Shares at a discount of approximately 20% below a determined market price based on the London Stock Exchange. The market price is determined as the average middle market price for the three trading days prior to the invitation date, or the market price on the day immediately preceding the participation date, or other market price agreed in writing, whichever is the higher value. Options granted under the Sharesave Plan and the Irish Sharesave Plan vest after 36 months and are generally only exercisable between 36 and 42 months from commencement of the related savings contract.

The significant assumptions utilized to estimate the weighted-average fair value of awards granted under the Share Saving Plans are as follows:

	Share Saving Plans
	Fiscal 2014			Fiscal 2013			Fiscal 2012
Share price(1)	$	72.65		$	49.89		$	40.09
Exercise price(1)	$	59.75		$	41.17		$	28.32
Risk free interest rate(1)		0.7	%		0.4	%		0.7	%
Expected term(1)		2.7 years			2.7 years			3.0 years
Expected volatility(1)		40.2	%		41.0	%		43.0	%
Dividend yield(1)		1.1	%		1.4	%		1.0	%
Fair value(1)	$	22.89		$	15.40		$	11.55

(1) Weighted average.

The risk free interest rate is based on the US Treasury (for US-based award recipients) or UK Gilt (for UK-based award recipients) yield curve in effect at the grant date with remaining terms equal to the expected term of the awards. The expected term utilized is based on the contractual vesting period of the awards, inclusive of any exercise period available to award recipients after vesting. The expected volatility is determined by calculating the historical volatility of Signet’s share price over the previous 10 years.

The Fiscal 2014 activity for awards granted under the Share Saving Plans is as follows:

	Share Saving Plans
	No. of shares			Weighted average exercise price		Weighted average remaining contractual life		Intrinsic value(1)
	millions							millions
Outstanding at February 2, 2013		0.3		$	32.48		1.9 years	$	9.8
Fiscal 2014 activity:
Granted		0.1		$	59.75
Exercised		(0.1	)	$	27.32
Lapsed		—		$	—
Outstanding at February 1, 2014		0.3		$	44.06		1.7 years	$	9.4
Exercisable at February 2, 2013		—		$	—		—	$	—
Exercisable at February 1, 2014		—		$	—		—	$	—

(1) Intrinsic value for outstanding awards is based on the fair market value of Signet’s common stock on the last business day of the fiscal year.

The following table summarizes additional information about awards granted under the Share Saving Plans:

	Fiscal 2014		Fiscal 2013		Fiscal 2012
(in millions)
Weighted average grant date fair value per share of awards granted	$	22.89	$	15.40	$	11.55
Total intrinsic value of options exercised	$	4.9	$	3.3	$	1.1
Cash received from share options exercised	$	2.9	$	2.7	$	3.2

Executive Plans

Signet operates three 2003 executive share plans (the “2003 Plans”), together referred to as the “Executive Plans.” Option awards under the Executive Plans are generally granted with an exercise price equal to the market price of the Company’s shares at the date of grant. Options under the Executive Plans are subject to certain internal performance criteria and cannot be exercised unless Signet achieves an annual rate of compound growth in earnings per share above the retail price index. The performance criteria are measured over a three year period from the start of the fiscal year in which the award is granted. Effective from Fiscal 2008, grants awarded under the 2003 Plans, other than for employee directors, are no longer subject to the performance criteria. Signet’s Executive Plans, which are shareholder approved, permit the grant of share options to employees for up to 10% of the issued Common Shares over any 10 year period, including any other employees share plans adopted by Signet or a maximum of 5% over 10 years including discretionary option plans. A maximum of 8,568,841 shares may be issued pursuant to options granted to US and UK participants in the Executive Plans. During Fiscal 2014, the plan periods for the Executive Plans expired. As a result, no additional awards may be granted under the Executive Plans as of February 1, 2014.

The Fiscal 2014 activity for awards granted under the Executive Plans is as follows:

	Executive Plans
	No. of shares			Weighted average exercise price		Weighted average remaining contractual life		Intrinsic value(1)
	millions							millions
Outstanding at February 2, 2013		0.3		$	39.07		3.4 years	$	6.5
Fiscal 2014 activity:
Granted		—		$	—
Exercised		(0.2	)	$	39.28
Lapsed		—		$	—
Outstanding at February 1, 2014		0.1		$	39.11		3.5 years	$	4.1
Exercisable at February 2, 2013		0.3		$	39.07			$	6.5
Exercisable at February 1, 2014		0.1		$	39.11			$	4.1

(1) Intrinsic value for outstanding awards is based on the fair market value of Signet’s common stock on the last business day of the fiscal year.

The following table summarizes additional information about awards granted under the Executive Plans:

	Fiscal 2014		Fiscal 2013		Fiscal 2012
(in millions)
Total intrinsic value of options exercised	$	4.8	$	9.0	$	5.2
Cash received from share options exercised	$	6.3	$	18.9	$	7.4

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Related Party Transactions

12 Months Ended

Feb. 01, 2014

Related Party Transactions

24. Related party transactions

There are no material related party transactions.

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Principal accounting policies

12 Months Ended

Feb. 01, 2014

Principal accounting policies

1. Principal accounting policies

Signet Jewelers Limited (“Signet”, or the “Company”) is a holding company, incorporated in Bermuda, that operates through its subsidiaries. Signet is a leading retailer whose results principally derive from one business segment—the retailing of jewelry, watches and associated services. The Company manages its business as two geographical reportable segments, being the United States of America (the “US”) and the United Kingdom (the “UK”). The US division operates retail stores under brands including Kay Jewelers, Jared The Galleria Of Jewelry and various regional brands. In Fiscal 2013, Ultra Stores Inc. was acquired by Signet, of which the majority of these stores were converted to the Kay brand during Fiscal 2014, with the remaining being accounted for within the regional brands. See Note 14. The UK division’s retail stores operate under brands including H.Samuel and Ernest Jones.

In the fourth quarter of Fiscal 2014, subsequent to the November 4, 2013 acquisition of a diamond polishing factory in Gaborone, Botswana, management established a separate operating segment (“Other”), which consists of all non-reportable segments including subsidiaries involved in the purchasing and conversion of rough diamonds to polished stones. See Note 14.

The following accounting policies have been applied consistently in the preparation of the Company’s financial statements with respect to items which are considered material in all reporting periods presented herein.

(a) Basis of preparation

The consolidated financial statements of Signet are prepared in accordance with US generally accepted accounting principles (“US GAAP”) and include the results of Signet and its subsidiaries for the 52 week period ended February 1, 2014 (“Fiscal 2014”), as Signet’s fiscal year ends on the Saturday nearest January 31. The comparative periods are for the 53 week period ended February 2, 2013 (“Fiscal 2013”) and the 52 week period ended January 28, 2012 (“Fiscal 2012”). Intercompany balances have been eliminated on consolidation.

(b) Use of estimates

The preparation of consolidated financial statements, in conformity with US GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates and assumptions are primarily made in relation to the valuation of receivables, inventories and deferred revenue, fair value of derivatives, depreciation and asset impairment, the valuation of employee benefits, income taxes and contingencies.

(c) Foreign currency translation

Assets and liabilities denominated in the UK pound sterling are translated into the US dollar at the exchange rate prevailing at the balance sheet date. Equity accounts denominated in the UK pound sterling are translated into US dollars at historical exchange rates. Revenues and expenses denominated in the UK pound sterling are translated into the US dollar at the monthly average exchange rate for the period and calculated each month from the weekly exchange rates weighted by sales of the UK division. Gains and losses resulting from foreign currency transactions are included within the consolidated income statement, whereas translation adjustments and gains and losses related to intercompany loans of a long-term investment nature are recognized as a component of accumulated other comprehensive income (loss) (“OCI”). In addition, as the majority of the sales and expenses related to the factory in Gaborone, Botswana are transacted in US dollars, there is no related foreign currency translation as the US dollar is the functional currency.

(d) Revenue recognition

Revenue is recognized when:

• there is persuasive evidence of an agreement or arrangement;

• delivery of products has occurred or services have been rendered;

• the seller’s price to the buyer is fixed and determinable; and

• collectability is reasonably assured.

Signet’s revenue streams and their respective accounting treatments are discussed below:

Merchandise sales

Store sales are recognized when the customer receives and pays for the merchandise at the store with cash, in-house customer finance or a third party credit card. For online sales, sales are recognized at the estimated time the customer has received the merchandise. Amounts related to shipping and handling that are billed to customers are reflected in sales and the related costs are reflected in cost of sales.

Revenue on the sale of merchandise is reported net of anticipated returns and sales tax collected. Returns are estimated based on previous return rates experienced.

Any deposits received from a customer for merchandise are deferred and recognized as revenue when the customer receives the merchandise.

Certain of Signet’s merchandise sales are derived from providing replacement merchandise on behalf of insurance organizations to their customers who have experienced a loss of their property. In these cases, the sales price is established by contract with the insurance organization and revenue on the sale is recognized upon receipt of the merchandise by the customer.

Merchandise repairs

Revenue on repair of merchandise is recognized when the service is complete and the customer collects the merchandise at the store.

Extended service plans and lifetime warranty agreements

The US division sells extended service plans where it is obliged, subject to certain conditions, to perform repair work over the lifetime of the product. Revenue from the sale of extended service plans is deferred over 14 years. Revenue is recognized in relation to the costs expected to be incurred in performing these services, with approximately 45% of revenue recognized within the first two years (February 2, 2013: 46%). The deferral period is determined from patterns of claims costs, including estimates of future claims costs expected to be incurred. Management reviews the trends in claims to assess whether changes are required to the revenue and cost recognition rates used. All direct costs associated with the sale of these plans are deferred and amortized in proportion to the revenue recognized and disclosed as either other current assets or other assets.

Signet also sells warranty agreements in the capacity of an agent on behalf of a third-party. The commission that Signet receives from the third-party is recognized at the time of the sale less an estimate of cancellations based on historical experience.

Sale vouchers

In connection with certain promotions, the Company gives customers making a purchase a voucher granting the customers a discount on a future purchase, redeemable within a stated time frame. The Company accounts for such vouchers by allocating the fair value of the voucher between the initial purchase and the future purchase.

The fair value of the voucher is determined based on the average sales transactions in which the vouchers were issued and the estimated average sales transactions when the vouchers are expected to be redeemed, combined with the estimated voucher redemption rate. The fair value allocated to the future purchase is recorded as deferred revenue.

Sale of consignment inventory

Sales of consignment inventory are accounted for on a gross sales basis. This reflects that the Company is the primary obligor providing independent advice, guidance and after sales service to customers. The products sold from consignment inventory are indistinguishable to the customer from other products that are sold from purchased inventory and are sold on the same terms. The Company selects the products and suppliers at its own discretion and is responsible for determining the selling price and the physical security of the products making it liable for any inventory loss. It also takes the credit risk of a sale to the customer.

(e) Cost of sales and selling, general and administrative expenses

Cost of sales includes merchandise costs net of discounts and allowances, freight, processing and distribution costs of moving merchandise from suppliers to distribution centers and to stores, inventory shrinkage, store operating and occupancy costs, net bad debts and charges for late payments under the US in-house customer finance programs. Store operating and occupancy costs include utilities, rent, real estate taxes, common area maintenance charges and depreciation. Selling, general and administrative expenses include store staff and store administrative costs, centralized administrative expenses, including information technology, credit and eCommerce, advertising and promotional costs, and other operating expenses not specifically categorized elsewhere in the consolidated income statements.

(f) Store opening costs

The opening costs of new locations are expensed as incurred.

(g) Advertising and promotional costs

Advertising and promotional costs are expensed within selling, general and administrative expenses. Production costs are expensed at the first communication of the advertisements, while communication expenses are recognized each time the advertisement is communicated. For catalogues and circulars, costs are all expensed at the first date they can be viewed by the customer. Point of sale promotional material is expensed when first displayed in the stores. Gross advertising costs totaled $253.8 million in Fiscal 2014 (Fiscal 2013: $245.8 million; Fiscal 2012: $208.6 million).

(h) Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation, amortization and impairment losses. Maintenance and repair costs are expensed as incurred. Depreciation and amortization are recognized on the straight-line method over the estimated useful lives of the related assets as follows:

Buildings	30 – 40 years when land is owned or the remaining term of lease, not to exceed 40 years
Leasehold improvements	Remaining term of lease, not to exceed 10 years
Furniture and fixtures	Ranging from 3 – 10 years
Equipment, including software	Ranging from 3 – 5 years

Equipment, which includes computer software purchased or developed for internal use, is stated at cost less accumulated amortization. Signet’s policy provides for the capitalization of external direct costs of materials and services associated with developing or obtaining internal use computer software. In addition, Signet also capitalizes certain payroll and payroll-related costs for employees who are directly associated with internal use computer projects. Amortization is charged on a straight-line basis over periods from three to five years.

Property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Potentially impaired assets or asset groups are identified by reviewing the cash flows of individual stores. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the undiscounted cash flow is less than the asset’s carrying amount, the impairment charge recognized is determined by estimating the fair value of the assets and recording a loss for the amount that the carrying value exceeds the estimated fair value. Property and equipment at stores planned for closure are depreciated over a revised estimate of their useful lives.

(i) Goodwill and other intangibles

Goodwill represents the excess of the purchase price of acquisitions over the Company’s interest in the fair value of the identifiable assets and liabilities acquired. Goodwill is recorded by the Company’s reporting units based on the acquisitions made by each. Goodwill is not amortized, but is reviewed for impairment and is required to be tested at least annually or whenever events or changes in circumstances indicate it is more likely than not that a reporting unit’s fair value is less than its carrying value. The annual testing date for reporting units within the US and UK segments is the last day of the fourth quarter.

The Company may elect to perform a qualitative assessment for each reporting unit to determine whether it is more likely than not that the fair value of the reporting unit is greater than its carrying value. If a qualitative assessment is not performed, or if as a result of a qualitative assessment it is not more likely than not that the fair value of a reporting unit exceeds its carrying value, then the reporting unit’s fair value is compared to its carrying value. Fair value is determined through the income approach using discounted cash flow models or market-based methodologies. Significant estimates used in these discounted cash flow models include: the weighted average cost of capital; long-term growth rates; expected changes to selling prices, direct costs and profitability of the business; and working capital requirements. Management estimates discount rates using post-tax rates that reflect assessments of the time value of money and Company-specific risks. If the carrying value exceeds the estimated fair value, the Company determines the fair value of all assets and liabilities of the reporting unit, including the implied fair value of goodwill. If the carrying value of goodwill exceeds the implied fair value of goodwill, the Company recognizes an impairment charge equal to the difference.

Goodwill is recorded in other assets. See Note 12.

(j) Inventories

Inventories held in the US and UK division primarily represent goods held for resale and are valued at the lower of cost or market value. Cost is determined using average cost and includes costs directly related to bringing inventory to its present location and condition. These include relevant warehousing, distribution and certain buying, security and data processing costs. Market value is defined as estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution. Inventory write-downs are recorded for obsolete, slow moving or defective items and shrinkage. The write-down is equal to the difference between the cost of inventory and its estimated market value based upon assumptions of targeted inventory turn rates, future demand, management strategy and market conditions. Shrinkage is estimated and recorded based on historical physical inventory results, expectations of future inventory losses and current inventory levels. Physical inventories are taken at least once annually for all store locations and distribution centers.

Inventories held in the Company’s diamond sourcing operations are valued at the lower of cost, as determined on specific identification process, or market.

(k) Vendor contributions

Contributions are received from vendors through various programs and arrangements including cooperative advertising. Where vendor contributions related to identifiable promotional events are received, these are matched against the costs of these promotions. Vendor contributions, which are received as general contributions and not related to specific promotional events, are recognized as a reduction of inventory costs.

(l) In-house customer finance programs

Signet’s US division operates customer in-house finance programs that allow customers to finance merchandise purchases from the US division’s stores. Signet recognizes finance charges in accordance with the contractual agreements. Gross interest earned is recorded as other operating income in the income statement. See Note 3. In addition to interest-bearing accounts, a significant proportion of credit sales are made using interest-free financing for one year or less, subject to certain conditions.

Accrual of interest is suspended when accounts become more than 90 days aged. Upon suspension of the accrual of interest, interest income is subsequently recognized to the extent cash payments are received. Accrual of interest is resumed when receivables are removed from non-accrual status.

(m) Accounts receivable

Accounts receivable are stated at their nominal amounts and primarily include account balances outstanding from Signet’s in-house customer finance programs. The finance receivables from the in-house customer finance programs are comprised of a large volume of transactions with no one customer representing a significant balance. The initial acceptance of customer finance arrangements is based on proprietary consumer credit scores. Subsequent to the initial finance purchase, Signet monitors the credit quality of its customer finance receivable portfolio based on payment activity that drives the aging of receivables. This credit quality indicator is assessed on a real-time basis by Signet.

Accounts receivable under the customer finance programs are shown net of an allowance for uncollectible amounts. See Note 10. This 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 and any amount associated with an account the owner of which has filed for bankruptcy, 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.

Allowances for uncollectible amounts are recorded as a charge to cost of sales in the income statement. Receivables are charged off to the allowance when amounts become more than 120 days aged on the recency method and more than 240 days aged on the contractual method. See Note 10.

(n) Leases

Assets held under capital leases relate to leases where substantially all the risks and rewards of the asset have passed to Signet. All other leases are defined as operating leases. Where operating leases include predetermined rent increases, those rents are charged to the income statement on a straight-line basis over the lease term, including any construction period or other rental holiday. Other amounts paid under operating leases are charged to the income statement as incurred. Premiums paid to acquire short-term leasehold properties and inducements to enter into a lease are recognized on a straight line basis over the lease term.

Certain leases provide for contingent rentals that are not measurable at inception. These contingent rentals are primarily based on a percentage of sales in excess of a predetermined level. These amounts are excluded from minimum rent and are included in the determination of rent expense when it is probable that the expense has been incurred and the amount is reasonably estimable.

(o) Income taxes

Income taxes are accounted for using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements. Under this method, deferred tax assets and liabilities are recognized by applying statutory tax rates in effect in the years in which the differences between the financial reporting and tax filing bases of existing assets and liabilities are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. A valuation allowance is established against deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized.

At any point in time, various tax years are subject to, or are in the process of, audit by various taxing authorities. To the extent that management’s estimates of settlements change, or the final tax outcome of these matters is different than the amounts recorded, such differences will impact the income tax provision in the period in which such determinations are made.

(p) Employee benefits

Signet operates a defined benefit pension plan in the UK (the “UK Plan”) which ceased to admit new employees effective April 2004. The UK Plan provides benefits to participating eligible employees. Beginning in Fiscal 2014, a change to the benefit structure was implemented and members’ benefits that accumulate after that date are now based upon career average salaries, whereas previously, all benefits were based on salaries at retirement. The UK Plan’s assets are held by the UK Plan.

The net periodic pension cost of the UK Plan is measured on an actuarial basis using the projected unit credit method and several actuarial assumptions, the most significant of which are the discount rate and the expected long-term rate of return on plan assets. Other material assumptions include rates of participant mortality, the expected long-term rate of compensation and pension increases and rates of employee attrition. Gains and losses occur when actual experience differs from actuarial assumptions. If such gains or losses exceed 10% of the greater of plan assets or plan liabilities, Signet amortizes those gains or losses over the average remaining service period of the employees.

The net periodic pension cost is charged to selling, general and administrative expenses in the income statement.

The funded status of the UK Plan is recognized on the balance sheet, and is the difference between the fair value of plan assets and the benefit obligation measured at the balance sheet date. Any gains or losses and prior service costs or credits that arise during the period but are not included as components of net periodic pension cost are recognized, net of tax, in the period within other comprehensive (loss) income.

Signet also operates a defined contribution pension plan in the UK and sponsors a defined contribution 401(k) retirement savings plan in the US. Contributions made by Signet to these pension arrangements are charged primarily to selling, general and administrative expenses in the income statement as incurred.

(q) Derivative financial instruments and hedge accounting

Signet enters into various types of derivative instruments to mitigate certain risk exposures related to changes in commodity costs and foreign exchange rates. Derivative instruments are recorded in the consolidated balance sheets at fair value, as either assets or liabilities, with an offset to current or comprehensive income, depending on whether the derivative qualifies as an effective hedge.

If a derivative instrument meets certain hedge accounting criteria, it may be designated as a cash flow hedge on the date it is entered into. A cash flow hedge is a hedge of the exposure to variability in the cash flows of a recognized asset, liability or a forecasted transaction. For cash flow hedge transactions, the effective portion of the changes in fair value of derivatives is recognized directly in equity as a component of accumulated OCI and is recognized in the consolidated income statements in the same period(s) and on the same financial statement line in which the hedged item affects net income. Amounts excluded from the effectiveness calculation and any ineffective portions of the change in fair value of the derivatives are recognized immediately in other operating income, net in the consolidated income statements. In addition, gains and losses on derivatives that do not qualify for hedge accounting are recognized immediately in other operating income, net.

In the normal course of business, the Company may terminate cash flow hedges prior to the occurrence of the underlying forecasted transaction. For cash flow hedges terminated prior to the occurrence of the underlying forecasted transaction, management monitors the probability of the associated forecasted cash flow transactions to assess whether any gain or loss recorded in accumulated OCI should be immediately recognized in net income.

Cash flows from derivative contracts are included in net cash provided by operating activities.

(r) Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, money market deposits and amounts placed with external fund managers with an original maturity of three months or less, and are carried at cost which approximates fair value. In addition, receivables from third-party credit card issuers typically converted to cash within 5 days of the original sales transaction are considered cash equivalents.

(s) Borrowing costs

Borrowings comprise interest bearing bank loans and bank overdrafts. Borrowing costs are capitalized and amortized into interest expense over the contractual term of the related loan.

(t) Share-based compensation

Signet measures share-based compensation cost for awards classified as equity at the grant date, based on the estimated fair value of the award, and recognizes the cost as an expense on a straight-line basis (net of estimated forfeitures) over the requisite service period of employees. Certain of Signet’s share plans include a condition whereby vesting is contingent on growth exceeding a given target, and therefore awards granted with this condition are considered to be performance-based awards.

Signet estimates fair value using a Black-Scholes model for awards granted under the Omnibus Plan (as defined in Note 23 below) and the binomial valuation model for awards granted under the Share Saving Plans (as defined in Note 23 below). Deferred tax assets for awards that result in deductions on the income tax returns of subsidiaries are recorded by Signet based on the amount of compensation cost recognized and the subsidiaries’ statutory tax rate in the jurisdiction in which it will receive a deduction. Differences between the deferred tax assets recognized for financial reporting purposes and the actual tax deduction reported on the subsidiaries’ income tax return are recorded in additional paid-in-capital (if the tax deduction exceeds the deferred tax asset) or in the income statement (if the deferred tax asset exceeds the tax deduction and no additional paid-in-capital exists from previous awards).

Share-based compensation is primarily recorded in selling, general and administrative expenses in the income statement, along with the relevant salary cost.

See Note 23 for a further description of Signet’s share-based compensation plans.

(u) Contingent liabilities

Provisions for contingent liabilities are recorded for probable losses when management is able to reasonably estimate the loss or range of loss.

When it is reasonably possible that a contingent liability may result in a loss or additional loss, the range of the loss is disclosed.

(v) Common shares

When new shares are issued, they are recorded in Common Shares at their par value. The excess of the issue price over the par value is recorded in additional paid-in capital.

(w) Dividends

Dividends are reflected as a reduction of retained earnings in the period in which they are formally approved by the Board of Directors (the “Board”).

(x) Recently issued accounting pronouncements

Adopted during the period

Reclassification out of Accumulated Other Comprehensive Income

In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” The new guidance does not change the current requirements for reporting net income or other comprehensive income, but it does require disclosure of amounts reclassified out of accumulated other comprehensive income by component, as well as require the presentation of these amounts on the face of the statements of comprehensive income or in the notes to the consolidated financial statements. ASU 2013-02 is effective for the reporting periods beginning after December 15, 2012. Signet adopted this guidance effective for the first quarter ended May 4, 2013 and the implementation of this accounting pronouncement did not have a material impact on Signet’s consolidated financial statements.

To be adopted in future periods

Presentation of Unrecognized Tax Benefit

In July 2013, the FASB issued ASU 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” The new guidance requires, unless certain conditions exist, an unrecognized tax benefit to be presented as a reduction to a deferred tax asset in the financial statements for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. The guidance in ASU 2013-11 will become effective for the Company prospectively for fiscal years beginning after December 15, 2013, and interim periods within those years, with early adoption permitted. Retrospective application is also permitted. Signet did not early adopt this guidance and it has determined that implementation will not have a material impact on Signet’s consolidated financial statements.

(y) Reclassification

Signet has reclassified the presentation of certain prior year information to conform to the current year presentation.

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Subsequent Event

12 Months Ended

Feb. 01, 2014

Subsequent Event

25. Subsequent Event

On February 19, 2014, Signet entered into a definitive agreement with Zale Corporation (“Zale”) to acquire all of Zale’s issued and outstanding common stock for $21.00 per share in cash, or approximately $1.4 billion including net debt. The proposed acquisition reflects our strategy to diversify our businesses and extend our international footprint. The acquisition is expected to be financed through the securitization of a significant portion of Signet’s US accounts receivable portfolio, bank debt and other debt financing. Signet has secured a commitment for bridge financing and a new underwritten term loan facility in connection with the transaction. Completion of the transaction is subject to customary closing conditions, including approval by Zale stockholders and regulatory approval.

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Inventories - Additional Information (Detail) (Consignment Inventory, USD $) In Millions, unless otherwise specified	Feb. 01, 2014	Feb. 02, 2013
Consignment Inventory
Inventories
Consignment inventory	$ 312.6	$ 227.7

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Pension Plans - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	1 Months Ended		12 Months Ended
	Apr. 01, 2011	Mar. 31, 2011	Feb. 01, 2014	Feb. 02, 2013	Jan. 28, 2012
Level 2
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets				$ 188.3
UK Plan
Defined Benefit Plan Disclosure [Line Items]
Estimated actuarial loss to be amortized from accumulated OCI into net periodic pension cost over the next fiscal year			2.0
Estimated prior service credit to be amortized from accumulated OCI into net periodic pension cost over the next fiscal year			(1.7)
Accumulated benefit obligation			210.3	197.5
Fair value of plan assets			282.6	261.1	236.0
Defined benefit plans, contribution			4.9	13.7
Defined benefit plan, expected contribution in the next fiscal year			4.2
Defined Contribution Plan, Contribution Amount			1.0	0.7	0.6
UK Plan | Level 2
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets			200.4	188.3
UK Plan | Bonds
Defined Benefit Plan Disclosure [Line Items]
Actual plan asset target allocations			45.00%
UK Plan | Equities
Defined Benefit Plan Disclosure [Line Items]
Actual plan asset target allocations			15.00%
Fair value of plan assets			41.0	73.2
UK Plan | Equities | Level 2
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets			21.9	38.3
UK Plan | Diversified Growth Funds
Defined Benefit Plan Disclosure [Line Items]
Actual plan asset target allocations			35.00%
Fair value of plan assets			100.5	51.2
UK Plan | Diversified Growth Funds | Level 2
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets			49.7	24.9
UK Plan | Property
Defined Benefit Plan Disclosure [Line Items]
Actual plan asset target allocations			5.00%
Fair value of plan assets			11.6	10.4
US Defined Contribution 401(k) plan
Defined Benefit Plan Disclosure [Line Items]
Defined Contribution Plan, Contribution Amount			7.1	6.5	5.4
Percentage contribution by employer	50.00%	25.00%	50.00%
Percentage of limited employee salary deferrals	6.00%		6.00%
Deferred compensation plan - US
Defined Benefit Plan Disclosure [Line Items]
Defined Contribution Cost Recognized			$ 2.4	$ 2.1	$ 2.2

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Earnings Per Share (Tables)

12 Months Ended

Feb. 01, 2014

Earnings Per Share, Basic and Diluted

	Fiscal 2014		Fiscal 2013		Fiscal 2012
(in millions, except per share amounts)
Net income	$	368.0	$	359.9	$	324.4
Basic weighted average number of shares outstanding		80.2		82.3		86.2
Dilutive effect of share awards		0.5		0.5		0.8
Diluted weighted average number of shares outstanding		80.7		82.8		87.0
Earnings per share – basic	$	4.59	$	4.37	$	3.76
Earnings per share – diluted	$	4.56	$	4.35	$	3.73

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Financial instruments and fair value (Tables)

12 Months Ended

Feb. 01, 2014

Fair Value and Presentation of Derivative Instruments in Condensed Consolidated Balance Sheets

The following table summarizes the fair value and presentation of derivative instruments in the consolidated balance sheets:

	Derivative assets
		Fair value
	Balance sheet location	February 1, 2014		February 2, 2013
(in millions)
Derivatives designated as hedging instruments:
Foreign currency contracts	Other current assets	$	—	$	1.0
Foreign currency contracts	Other assets		—		—
Commodity contracts	Other current assets		0.8		2.8
Commodity contracts	Other assets		—		—
			0.8		3.8
Derivatives not designated as hedging instruments:
Foreign currency contracts	Other current assets		0.2		—
Total derivative assets		$	1.0	$	3.8

	Derivative liabilities
		Fair value
	Balance sheet location	February 1, 2014			February 2, 2013
(in millions)
Derivatives designated as hedging instruments:
Foreign currency contracts	Other current liabilities	$	(2.1	)	$	—
Foreign currency contracts	Other liabilities		—			—
Commodity contracts	Other current liabilities		(0.8	)		(4.6	)
Commodity contracts	Other liabilities		—			—
			(2.9	)		(4.6	)
Derivatives not designated as hedging instruments:
Foreign currency contracts	Other current liabilities		—			—
Total derivative liabilities		$	(2.9	)	$	(4.6	)

Summary of Pre-Tax Gains (Losses) Recorded In Accumulated OCI for Derivatives

The following table summarizes the pre-tax gains (losses) recorded in accumulated OCI for derivatives designated in cash flow hedging relationships:

	February 1, 2014			February 2, 2013
(in millions)
Foreign currency contracts	$	(2.3	)	$	1.3
Commodity contracts		(18.8	)(1)		(0.5	)
Total	$	(21.1	)	$	0.8

(1) Includes losses of $18.2 million related to commodity contracts terminated prior to contract maturity in Fiscal 2014.

Fair Value of Financial Instruments Held Or Issued

The methods Signet uses to determine fair value on an instrument-specific basis are detailed below.

	February 1, 2014						February 2, 2013
	Carrying amount			Significant other observable inputs (Level 2)			Carrying amount			Significant other observable inputs (Level 2)
(in millions)
Assets:
Foreign currency contracts	$	0.2		$	0.2		$	1.0		$	1.0
Commodity contracts		0.8			0.8			2.8			2.8
Liabilities:
Foreign currency contracts		(2.1	)		(2.1	)		—			—
Commodity contracts		(0.8	)		(0.8	)		(4.6	)		(4.6	)

Not Designated as Hedging Instrument

Effect of Derivative Instruments on Consolidated Income Statements

The following table presents the effects of the Company’s derivatives instruments not designated as cash flow hedges in the consolidated income statements:

	Income statement caption		Amount of gain  (loss) recognized in income
			Fiscal 2014			Fiscal 2013
(in millions)
Derivatives not designated as hedging instruments:
Foreign currency contracts		Other operating income, net	$	(5.5	)	$	—
Total			$	(5.5	)	$	—

Cash Flow Hedging

Effect of Derivative Instruments on Consolidated Income Statements

The following tables summarize the effect of derivative instruments designated as cash flow hedges in OCI and the consolidated income statements:

Foreign currency contracts

	Income statement caption		Fiscal 2014			Fiscal 2013
(in millions)
Gains (losses) recorded in accumulated OCI, beginning of year			$	1.3		$	1.2
Current period (losses) gains recognized in OCI				(2.7	)		0.5
(Gains) losses reclassified from accumulated OCI to net income		Cost of sales		(0.9	)		(0.4	)
(Losses) gains recorded in accumulated OCI, end of year			$	(2.3	)	$	1.3

Commodity contracts

	Income statement caption		Fiscal 2014			Fiscal 2013
(in millions)
(Losses) gains recorded in accumulated OCI, beginning of year			$	(0.5	)	$	32.4
Current period (losses) gains recognized in OCI				(30.3	)(1)		(10.9	)
Losses (gains) reclassified from accumulated OCI to net income		Cost of sales		12.0			(22.0	)
(Losses) gains recorded in accumulated OCI, end of year			$	(18.8	)	$	(0.5	)

(1) Includes losses of $27.8 million related to the change in fair value of commodity contracts the Company terminated prior to contract maturity in Fiscal 2014.

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Earnings Per Share - Additional Information (Detail)	12 Months Ended
	Feb. 01, 2014	Feb. 02, 2013	Jan. 28, 2012
Earnings Per Share [Abstract]
Effect of treasury shares and non-vested restricted stock excluded from basic weighted average number of shares outstanding	6,961,632	4,882,625	576,427
Anti-dilutive shares excluded from the calculation of earnings per share	70,447	192,374	375,071

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Consolidated Income Statements (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Feb. 01, 2014	Nov. 02, 2013	Aug. 03, 2013	May 04, 2013	Feb. 02, 2013	Oct. 27, 2012	Jul. 28, 2012	Apr. 28, 2012	Feb. 01, 2014	Feb. 02, 2013	Jan. 28, 2012
Sales	$ 1,564.0	$ 771.4	$ 880.2	$ 993.6	$ 1,513.3	$ 716.2	$ 853.9	$ 900.0	$ 4,209.2	$ 3,983.4	$ 3,749.2
Cost of sales									(2,628.7)	(2,446.0)	(2,311.6)
Gross margin	648.8	239.2	309.7	382.8	637.1	235.4	311.2	353.7	1,580.5	1,537.4	1,437.6
Selling, general and administrative expenses									(1,196.7)	(1,138.3)	(1,056.7)
Other operating income, net									186.7	161.4	126.5
Operating income									570.5	560.5	507.4
Interest expense, net									(4.0)	(3.6)	(5.3)
(Loss) income before income taxes									566.5	556.9	502.1
Income taxes									(198.5)	(197.0)	(177.7)
Net income	$ 175.2	$ 33.6	$ 67.4	$ 91.8	$ 171.8	$ 34.9	$ 70.7	$ 82.5	$ 368.0	$ 359.9	$ 324.4
Earnings per share: basic	$ 2.20	$ 0.42	$ 0.84	$ 1.14	$ 2.13	$ 0.43	$ 0.86	$ 0.96	$ 4.59	$ 4.37	$ 3.76
Earnings per share: diluted	$ 2.18	$ 0.42	$ 0.84	$ 1.13	$ 2.12	$ 0.43	$ 0.85	$ 0.96	$ 4.56	$ 4.35	$ 3.73
Weighted average common shares outstanding: basic									80.2	82.3	86.2
Weighted average common shares outstanding: diluted									80.7	82.8	87.0
Dividends declared per share									$ 0.60	$ 0.48	$ 0.20

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Inventories (Tables)

12 Months Ended

Feb. 01, 2014

Inventories

	February  1, 2014		February  2, 2013
(in millions)
Raw materials	$	41.8	$	41.2
Finished goods		1,446.2		1,355.8
Total inventories	$	1,488.0	$	1,397.0

Inventory Reserves

	Balance at beginning of period		Charged to profit		Utilized(1)			Balance at end of period
(in millions)
Fiscal 2012	$	27.8	$	18.4	$	(16.9	)	$	29.3
Fiscal 2013		29.3		23.6		(29.5	)		23.4
Fiscal 2014		23.4		33.3		(40.4	)		16.3

(1) Including the impact of foreign exchange translation between opening and closing balance sheet dates.

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Warranty Reserves (Detail) (Warranty Reserves, USD $) In Millions, unless otherwise specified	Feb. 01, 2014		Feb. 02, 2013		Jan. 28, 2012	Jan. 28, 2011
Warranty Reserves
Product Warranty Accrual, Balance Sheet Classification [Abstract]
Current liabilities	$ 6.7	[1]	$ 6.9	[1]
Non-current liabilities (see Note 17)	12.4		11.6
Total warranty reserve	$ 19.1		$ 18.5		$ 15.1	$ 13.0

[1] Included within accrued expenses above.

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Supplemental Condensed Consolidated Statement of Comprehensive Income (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended								12 Months Ended
	Feb. 01, 2014	Nov. 02, 2013	Aug. 03, 2013	May 04, 2013	Feb. 02, 2013	Oct. 27, 2012	Jul. 28, 2012	Apr. 28, 2012	Feb. 01, 2014	Feb. 02, 2013	Jan. 28, 2012
Condensed Financial Statements, Captions [Line Items]
Net income	$ 175.2	$ 33.6	$ 67.4	$ 91.8	$ 171.8	$ 34.9	$ 70.7	$ 82.5	$ 368.0	$ 359.9	$ 324.4
Other comprehensive income (loss):
Foreign currency translation adjustments									12.4	(0.5)	(3.9)
Cash flow hedges:
Unrealized (loss) gain									(22.0)	(6.7)	32.2
Reclassification adjustment for losses (gains) to net income									6.7	(14.4)	(16.0)
Pension plan:
Actuarial gain (loss)									0.2	4.7	(7.3)
Reclassification adjustment to net income for amortization of actuarial loss									1.7	2.4	1.8
Prior service (benefit) costs									(0.7)	(0.8)	5.5
Reclassification adjustment to net income for amortization of prior service credits									(1.1)	(1.2)	(0.7)
Total other comprehensive (loss) income									(2.8)	(16.5)	11.6
Total comprehensive income									365.2	343.4	336.0
Signet Jewelers Limited
Condensed Financial Statements, Captions [Line Items]
Net income									368.0	359.9	324.4
Pension plan:
Total comprehensive income									368.0	359.9	324.4
Guarantor Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Net income									641.4	624.5	568.6
Other comprehensive income (loss):
Foreign currency translation adjustments									13.9	(0.6)	(4.4)
Cash flow hedges:
Unrealized (loss) gain									(22.0)	(6.7)	32.2
Reclassification adjustment for losses (gains) to net income									6.7	(14.4)	(16.0)
Pension plan:
Actuarial gain (loss)									0.2	4.7	(7.3)
Reclassification adjustment to net income for amortization of actuarial loss									1.7	2.4	1.8
Prior service (benefit) costs									(0.7)	(0.8)	5.5
Reclassification adjustment to net income for amortization of prior service credits									(1.1)	(1.2)	(0.7)
Total other comprehensive (loss) income									(1.3)	(16.6)	11.1
Total comprehensive income									640.1	607.9	579.7
Non-Guarantor Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Net income									375.0	367.9	338.2
Other comprehensive income (loss):
Foreign currency translation adjustments									(2.7)	0.1	0.6
Pension plan:
Total other comprehensive (loss) income									(2.7)	0.1	0.6
Total comprehensive income									372.3	368.0	338.8
Eliminations
Condensed Financial Statements, Captions [Line Items]
Net income									(1,016.4)	(992.4)	(906.8)
Other comprehensive income (loss):
Foreign currency translation adjustments									1.2		(0.1)
Pension plan:
Total other comprehensive (loss) income									1.2		(0.1)
Total comprehensive income									$ (1,015.2)	$ (992.4)	$ (906.9)

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Accumulated OCI Not Yet Recognized as Income (Expense) (Detail) (UK Plan, USD $) In Millions, unless otherwise specified	Feb. 01, 2014	Feb. 02, 2013	Jan. 28, 2012
UK Plan
Defined Benefit Plan Disclosure [Line Items]
Net actuarial loss	$ (42.5)	$ (44.4)	$ (51.5)
Net prior service credit	$ 15.3	$ 17.1	$ 19.1

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Consolidated Statements Of Cash Flows (USD $) In Millions, unless otherwise specified	12 Months Ended
	Feb. 01, 2014	Feb. 02, 2013	Jan. 28, 2012
Cash flows from operating activities
Net income	$ 368.0	$ 359.9	$ 324.4
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property, plant and equipment	110.2	99.4	92.4
Pension (benefit) expense	(0.5)	3.2	3.3
Share-based compensation	14.4	15.7	17.0
Deferred taxation	(20.4)	4.3	29.3
Excess tax benefit from exercise of share awards	(6.5)	(7.4)	(3.9)
Facility amendment fee amortization and charges	0.4	0.4	1.9
Other non-cash movements	(3.3)	(1.4)	0.3
Changes in operating assets and liabilities:
Increase in accounts receivable	(168.3)	(117.1)	(152.5)
Increase in other receivables and other assets	(21.6)	(1.3)	(17.8)
(Increase) decrease in other current assets	(3.9)	(5.2)	1.8
Increase in inventories	(98.4)	(65.7)	(115.2)
Increase (decrease) in accounts payable	3.2	(39.6)	57.2
Increase in accrued expenses and other liabilities	8.6	13.4	26.5
Increase in deferred revenue	50.8	40.6	28.9
Increase in income taxes payable	7.9	27.2	43.3
Pension plan contributions	(4.9)	(13.7)	(14.2)
Effect of exchange rate changes on currency swaps	(0.2)		2.5
Net cash provided by operating activities	235.5	312.7	325.2
Investing activities
Purchase of property, plant and equipment	(152.7)	(134.2)	(97.8)
Net cash used in investing activities	(160.4)	(190.9)	(97.8)
Financing activities
Dividends paid	(46.0)	(38.4)	(8.7)
Proceeds from issuance of common shares	9.3	21.6	10.6
Excess tax benefit from exercise of share awards	6.5	7.4	3.9
Repurchase of common shares	(104.7)	(287.2)	(12.7)
Net settlement of equity based awards	(9.2)	(11.5)
Credit facility fees paid			(2.1)
Proceeds from (repayment of) short-term borrowings	19.3		(31.0)
Net cash used in financing activities	(124.8)	(308.1)	(40.0)
Cash and cash equivalents at beginning of period	301.0	486.8	302.1
(Decrease) increase in cash and cash equivalents	(49.7)	(186.3)	187.4
Effect of exchange rate changes on cash and cash equivalents	(3.7)	0.5	(2.7)
Cash and cash equivalents at end of period	247.6	301.0	486.8
Supplemental cash flow information:
Interest paid	3.5	3.4	5.1
Income taxes paid	211.0	165.6	105.1
Ultra Acquisition
Investing activities
Acquisition of business, net of cash received	1.4	(56.7)
Botswana Diamond Polishing Factory Acquisition
Investing activities
Acquisition of business, net of cash received	$ (9.1)

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Accrued Expenses and Other Current Liabilities - Additional Information (Detail)	12 Months Ended
	Feb. 01, 2014
Accrued Expenses and Other Current Liabilities [Line Items]
Lifetime diamond guarantee inspection period	6 months

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Quarterly Financial Information (Detail) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Feb. 01, 2014	Nov. 02, 2013	Aug. 03, 2013	May 04, 2013	Feb. 02, 2013	Oct. 27, 2012	Jul. 28, 2012	Apr. 28, 2012	Feb. 01, 2014	Feb. 02, 2013	Jan. 28, 2012
Quarterly financial information
Sales	$ 1,564.0	$ 771.4	$ 880.2	$ 993.6	$ 1,513.3	$ 716.2	$ 853.9	$ 900.0	$ 4,209.2	$ 3,983.4	$ 3,749.2
Gross margin	648.8	239.2	309.7	382.8	637.1	235.4	311.2	353.7	1,580.5	1,537.4	1,437.6
Net income	$ 175.2	$ 33.6	$ 67.4	$ 91.8	$ 171.8	$ 34.9	$ 70.7	$ 82.5	$ 368.0	$ 359.9	$ 324.4
Earnings per share - basic	$ 2.20	$ 0.42	$ 0.84	$ 1.14	$ 2.13	$ 0.43	$ 0.86	$ 0.96	$ 4.59	$ 4.37	$ 3.76
Earnings per share - diluted	$ 2.18	$ 0.42	$ 0.84	$ 1.13	$ 2.12	$ 0.43	$ 0.85	$ 0.96	$ 4.56	$ 4.35	$ 3.73

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Quarterly Financial Information (Tables)

12 Months Ended

Feb. 01, 2014

Schedule of Quarterly Financial Information

The following information incorporates the change in accounting for extended service plans that is described in Item 6 and Item 8.

	Fiscal 2014 Quarters ended
	May 4, 2013		August 3, 2013		November 2, 2013		February 1, 2014
(in millions, except per share amounts)
Sales	$	993.6	$	880.2	$	771.4	$	1,564.0
Gross margin		382.8		309.7		239.2		648.8
Net income		91.8		67.4		33.6		175.2
Earnings per share – basic	$	1.14	$	0.84	$	0.42	$	2.20
– diluted	$	1.13	$	0.84	$	0.42	$	2.18

	Fiscal 2013 Quarters ended
	April 28, 2012		July 28, 2012		October 27, 2012		February 2, 2013
(in millions, except per share amounts)
Sales	$	900.0	$	853.9	$	716.2	$	1,513.3
Gross margin		353.7		311.2		235.4		637.1
Net income		82.5		70.7		34.9		171.8
Earnings per share – basic	$	0.96	$	0.86	$	0.43	$	2.13
– diluted	$	0.96	$	0.85	$	0.43	$	2.12

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Other Liabilities - Non - Current (Detail) (USD $) In Millions, unless otherwise specified	Feb. 01, 2014	Feb. 02, 2013	Jan. 28, 2012
Other Liabilities Non-current
Straight-line rent	$ 67.1	$ 65.6
Deferred compensation	25.0	18.5
Warranty reserve	12.4	11.6
Lease loss reserve	5.8	8.1	9.6
Other liabilities	11.4	7.5
Total other liabilities	$ 121.7	$ 111.3

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Principal accounting policies (Policies)

12 Months Ended

Feb. 01, 2014

Basis of preparation

(a) Basis of preparation

The consolidated financial statements of Signet are prepared in accordance with US generally accepted accounting principles (“US GAAP”) and include the results of Signet and its subsidiaries for the 52 week period ended February 1, 2014 (“Fiscal 2014”), as Signet’s fiscal year ends on the Saturday nearest January 31. The comparative periods are for the 53 week period ended February 2, 2013 (“Fiscal 2013”) and the 52 week period ended January 28, 2012 (“Fiscal 2012”). Intercompany balances have been eliminated on consolidation.

Use of Estimates

(b) Use of estimates

The preparation of consolidated financial statements, in conformity with US GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates and assumptions are primarily made in relation to the valuation of receivables, inventories and deferred revenue, fair value of derivatives, depreciation and asset impairment, the valuation of employee benefits, income taxes and contingencies.

Foreign Currency Translation

(c) Foreign currency translation

Assets and liabilities denominated in the UK pound sterling are translated into the US dollar at the exchange rate prevailing at the balance sheet date. Equity accounts denominated in the UK pound sterling are translated into US dollars at historical exchange rates. Revenues and expenses denominated in the UK pound sterling are translated into the US dollar at the monthly average exchange rate for the period and calculated each month from the weekly exchange rates weighted by sales of the UK division. Gains and losses resulting from foreign currency transactions are included within the consolidated income statement, whereas translation adjustments and gains and losses related to intercompany loans of a long-term investment nature are recognized as a component of accumulated other comprehensive income (loss) (“OCI”). In addition, as the majority of the sales and expenses related to the factory in Gaborone, Botswana are transacted in US dollars, there is no related foreign currency translation as the US dollar is the functional currency.

Revenue Recognition

(d) Revenue recognition

Revenue is recognized when:

• there is persuasive evidence of an agreement or arrangement;

• delivery of products has occurred or services have been rendered;

• the seller’s price to the buyer is fixed and determinable; and

• collectability is reasonably assured.

Signet’s revenue streams and their respective accounting treatments are discussed below:

Merchandise sales

Store sales are recognized when the customer receives and pays for the merchandise at the store with cash, in-house customer finance or a third party credit card. For online sales, sales are recognized at the estimated time the customer has received the merchandise. Amounts related to shipping and handling that are billed to customers are reflected in sales and the related costs are reflected in cost of sales.

Revenue on the sale of merchandise is reported net of anticipated returns and sales tax collected. Returns are estimated based on previous return rates experienced.

Any deposits received from a customer for merchandise are deferred and recognized as revenue when the customer receives the merchandise.

Certain of Signet’s merchandise sales are derived from providing replacement merchandise on behalf of insurance organizations to their customers who have experienced a loss of their property. In these cases, the sales price is established by contract with the insurance organization and revenue on the sale is recognized upon receipt of the merchandise by the customer.

Merchandise repairs

Revenue on repair of merchandise is recognized when the service is complete and the customer collects the merchandise at the store.

Extended service plans and lifetime warranty agreements

The US division sells extended service plans where it is obliged, subject to certain conditions, to perform repair work over the lifetime of the product. Revenue from the sale of extended service plans is deferred over 14 years. Revenue is recognized in relation to the costs expected to be incurred in performing these services, with approximately 45% of revenue recognized within the first two years (February 2, 2013: 46%). The deferral period is determined from patterns of claims costs, including estimates of future claims costs expected to be incurred. Management reviews the trends in claims to assess whether changes are required to the revenue and cost recognition rates used. All direct costs associated with the sale of these plans are deferred and amortized in proportion to the revenue recognized and disclosed as either other current assets or other assets.

Signet also sells warranty agreements in the capacity of an agent on behalf of a third-party. The commission that Signet receives from the third-party is recognized at the time of the sale less an estimate of cancellations based on historical experience.

Sale vouchers

In connection with certain promotions, the Company gives customers making a purchase a voucher granting the customers a discount on a future purchase, redeemable within a stated time frame. The Company accounts for such vouchers by allocating the fair value of the voucher between the initial purchase and the future purchase.

The fair value of the voucher is determined based on the average sales transactions in which the vouchers were issued and the estimated average sales transactions when the vouchers are expected to be redeemed, combined with the estimated voucher redemption rate. The fair value allocated to the future purchase is recorded as deferred revenue.

Sale of consignment inventory

Sales of consignment inventory are accounted for on a gross sales basis. This reflects that the Company is the primary obligor providing independent advice, guidance and after sales service to customers. The products sold from consignment inventory are indistinguishable to the customer from other products that are sold from purchased inventory and are sold on the same terms. The Company selects the products and suppliers at its own discretion and is responsible for determining the selling price and the physical security of the products making it liable for any inventory loss. It also takes the credit risk of a sale to the customer.

Cost of Sales and Selling, General and Administrative Expenses

(e) Cost of sales and selling, general and administrative expenses

Cost of sales includes merchandise costs net of discounts and allowances, freight, processing and distribution costs of moving merchandise from suppliers to distribution centers and to stores, inventory shrinkage, store operating and occupancy costs, net bad debts and charges for late payments under the US in-house customer finance programs. Store operating and occupancy costs include utilities, rent, real estate taxes, common area maintenance charges and depreciation. Selling, general and administrative expenses include store staff and store administrative costs, centralized administrative expenses, including information technology, credit and eCommerce, advertising and promotional costs, and other operating expenses not specifically categorized elsewhere in the consolidated income statements.

Store Opening Costs

(f) Store opening costs

The opening costs of new locations are expensed as incurred.

Advertising and Promotional Costs

(g) Advertising and promotional costs

Advertising and promotional costs are expensed within selling, general and administrative expenses. Production costs are expensed at the first communication of the advertisements, while communication expenses are recognized each time the advertisement is communicated. For catalogues and circulars, costs are all expensed at the first date they can be viewed by the customer. Point of sale promotional material is expensed when first displayed in the stores. Gross advertising costs totaled $253.8 million in Fiscal 2014 (Fiscal 2013: $245.8 million; Fiscal 2012: $208.6 million).

Property, Plant and Equipment

(h) Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation, amortization and impairment losses. Maintenance and repair costs are expensed as incurred. Depreciation and amortization are recognized on the straight-line method over the estimated useful lives of the related assets as follows:

Buildings	30 – 40 years when land is owned or the remaining term of lease, not to exceed 40 years
Leasehold improvements	Remaining term of lease, not to exceed 10 years
Furniture and fixtures	Ranging from 3 – 10 years
Equipment, including software	Ranging from 3 – 5 years

Equipment, which includes computer software purchased or developed for internal use, is stated at cost less accumulated amortization. Signet’s policy provides for the capitalization of external direct costs of materials and services associated with developing or obtaining internal use computer software. In addition, Signet also capitalizes certain payroll and payroll-related costs for employees who are directly associated with internal use computer projects. Amortization is charged on a straight-line basis over periods from three to five years.

Property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Potentially impaired assets or asset groups are identified by reviewing the cash flows of individual stores. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the undiscounted cash flow is less than the asset’s carrying amount, the impairment charge recognized is determined by estimating the fair value of the assets and recording a loss for the amount that the carrying value exceeds the estimated fair value. Property and equipment at stores planned for closure are depreciated over a revised estimate of their useful lives.

Goodwill and Other Intangibles

(i) Goodwill and other intangibles

Goodwill represents the excess of the purchase price of acquisitions over the Company’s interest in the fair value of the identifiable assets and liabilities acquired. Goodwill is recorded by the Company’s reporting units based on the acquisitions made by each. Goodwill is not amortized, but is reviewed for impairment and is required to be tested at least annually or whenever events or changes in circumstances indicate it is more likely than not that a reporting unit’s fair value is less than its carrying value. The annual testing date for reporting units within the US and UK segments is the last day of the fourth quarter.

The Company may elect to perform a qualitative assessment for each reporting unit to determine whether it is more likely than not that the fair value of the reporting unit is greater than its carrying value. If a qualitative assessment is not performed, or if as a result of a qualitative assessment it is not more likely than not that the fair value of a reporting unit exceeds its carrying value, then the reporting unit’s fair value is compared to its carrying value. Fair value is determined through the income approach using discounted cash flow models or market-based methodologies. Significant estimates used in these discounted cash flow models include: the weighted average cost of capital; long-term growth rates; expected changes to selling prices, direct costs and profitability of the business; and working capital requirements. Management estimates discount rates using post-tax rates that reflect assessments of the time value of money and Company-specific risks. If the carrying value exceeds the estimated fair value, the Company determines the fair value of all assets and liabilities of the reporting unit, including the implied fair value of goodwill. If the carrying value of goodwill exceeds the implied fair value of goodwill, the Company recognizes an impairment charge equal to the difference.

Goodwill is recorded in other assets. See Note 12.

Inventories

(j) Inventories

Inventories held in the US and UK division primarily represent goods held for resale and are valued at the lower of cost or market value. Cost is determined using average cost and includes costs directly related to bringing inventory to its present location and condition. These include relevant warehousing, distribution and certain buying, security and data processing costs. Market value is defined as estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution. Inventory write-downs are recorded for obsolete, slow moving or defective items and shrinkage. The write-down is equal to the difference between the cost of inventory and its estimated market value based upon assumptions of targeted inventory turn rates, future demand, management strategy and market conditions. Shrinkage is estimated and recorded based on historical physical inventory results, expectations of future inventory losses and current inventory levels. Physical inventories are taken at least once annually for all store locations and distribution centers.

Inventories held in the Company’s diamond sourcing operations are valued at the lower of cost, as determined on specific identification process, or market.

Vendor Contributions

(k) Vendor contributions

Contributions are received from vendors through various programs and arrangements including cooperative advertising. Where vendor contributions related to identifiable promotional events are received, these are matched against the costs of these promotions. Vendor contributions, which are received as general contributions and not related to specific promotional events, are recognized as a reduction of inventory costs.

In-House Customer Finance Programs

(l) In-house customer finance programs

Signet’s US division operates customer in-house finance programs that allow customers to finance merchandise purchases from the US division’s stores. Signet recognizes finance charges in accordance with the contractual agreements. Gross interest earned is recorded as other operating income in the income statement. See Note 3. In addition to interest-bearing accounts, a significant proportion of credit sales are made using interest-free financing for one year or less, subject to certain conditions.

Accrual of interest is suspended when accounts become more than 90 days aged. Upon suspension of the accrual of interest, interest income is subsequently recognized to the extent cash payments are received. Accrual of interest is resumed when receivables are removed from non-accrual status.

Accounts Receivable

(m) Accounts receivable

Accounts receivable are stated at their nominal amounts and primarily include account balances outstanding from Signet’s in-house customer finance programs. The finance receivables from the in-house customer finance programs are comprised of a large volume of transactions with no one customer representing a significant balance. The initial acceptance of customer finance arrangements is based on proprietary consumer credit scores. Subsequent to the initial finance purchase, Signet monitors the credit quality of its customer finance receivable portfolio based on payment activity that drives the aging of receivables. This credit quality indicator is assessed on a real-time basis by Signet.

Accounts receivable under the customer finance programs are shown net of an allowance for uncollectible amounts. See Note 10. This 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 and any amount associated with an account the owner of which has filed for bankruptcy, 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.

Allowances for uncollectible amounts are recorded as a charge to cost of sales in the income statement. Receivables are charged off to the allowance when amounts become more than 120 days aged on the recency method and more than 240 days aged on the contractual method. See Note 10.

Leases

(n) Leases

Assets held under capital leases relate to leases where substantially all the risks and rewards of the asset have passed to Signet. All other leases are defined as operating leases. Where operating leases include predetermined rent increases, those rents are charged to the income statement on a straight-line basis over the lease term, including any construction period or other rental holiday. Other amounts paid under operating leases are charged to the income statement as incurred. Premiums paid to acquire short-term leasehold properties and inducements to enter into a lease are recognized on a straight line basis over the lease term.

Certain leases provide for contingent rentals that are not measurable at inception. These contingent rentals are primarily based on a percentage of sales in excess of a predetermined level. These amounts are excluded from minimum rent and are included in the determination of rent expense when it is probable that the expense has been incurred and the amount is reasonably estimable.

Income Taxes

(o) Income taxes

Income taxes are accounted for using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements. Under this method, deferred tax assets and liabilities are recognized by applying statutory tax rates in effect in the years in which the differences between the financial reporting and tax filing bases of existing assets and liabilities are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. A valuation allowance is established against deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized.

At any point in time, various tax years are subject to, or are in the process of, audit by various taxing authorities. To the extent that management’s estimates of settlements change, or the final tax outcome of these matters is different than the amounts recorded, such differences will impact the income tax provision in the period in which such determinations are made.

Employee Benefits

(p) Employee benefits

Signet operates a defined benefit pension plan in the UK (the “UK Plan”) which ceased to admit new employees effective April 2004. The UK Plan provides benefits to participating eligible employees. Beginning in Fiscal 2014, a change to the benefit structure was implemented and members’ benefits that accumulate after that date are now based upon career average salaries, whereas previously, all benefits were based on salaries at retirement. The UK Plan’s assets are held by the UK Plan.

The net periodic pension cost of the UK Plan is measured on an actuarial basis using the projected unit credit method and several actuarial assumptions, the most significant of which are the discount rate and the expected long-term rate of return on plan assets. Other material assumptions include rates of participant mortality, the expected long-term rate of compensation and pension increases and rates of employee attrition. Gains and losses occur when actual experience differs from actuarial assumptions. If such gains or losses exceed 10% of the greater of plan assets or plan liabilities, Signet amortizes those gains or losses over the average remaining service period of the employees.

The net periodic pension cost is charged to selling, general and administrative expenses in the income statement.

The funded status of the UK Plan is recognized on the balance sheet, and is the difference between the fair value of plan assets and the benefit obligation measured at the balance sheet date. Any gains or losses and prior service costs or credits that arise during the period but are not included as components of net periodic pension cost are recognized, net of tax, in the period within other comprehensive (loss) income.

Signet also operates a defined contribution pension plan in the UK and sponsors a defined contribution 401(k) retirement savings plan in the US. Contributions made by Signet to these pension arrangements are charged primarily to selling, general and administrative expenses in the income statement as incurred.

Derivative Financial Instruments and Hedge Accounting

(q) Derivative financial instruments and hedge accounting

Signet enters into various types of derivative instruments to mitigate certain risk exposures related to changes in commodity costs and foreign exchange rates. Derivative instruments are recorded in the consolidated balance sheets at fair value, as either assets or liabilities, with an offset to current or comprehensive income, depending on whether the derivative qualifies as an effective hedge.

If a derivative instrument meets certain hedge accounting criteria, it may be designated as a cash flow hedge on the date it is entered into. A cash flow hedge is a hedge of the exposure to variability in the cash flows of a recognized asset, liability or a forecasted transaction. For cash flow hedge transactions, the effective portion of the changes in fair value of derivatives is recognized directly in equity as a component of accumulated OCI and is recognized in the consolidated income statements in the same period(s) and on the same financial statement line in which the hedged item affects net income. Amounts excluded from the effectiveness calculation and any ineffective portions of the change in fair value of the derivatives are recognized immediately in other operating income, net in the consolidated income statements. In addition, gains and losses on derivatives that do not qualify for hedge accounting are recognized immediately in other operating income, net.

In the normal course of business, the Company may terminate cash flow hedges prior to the occurrence of the underlying forecasted transaction. For cash flow hedges terminated prior to the occurrence of the underlying forecasted transaction, management monitors the probability of the associated forecasted cash flow transactions to assess whether any gain or loss recorded in accumulated OCI should be immediately recognized in net income.

Cash flows from derivative contracts are included in net cash provided by operating activities.

Cash and Cash Equivalents

(r) Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, money market deposits and amounts placed with external fund managers with an original maturity of three months or less, and are carried at cost which approximates fair value. In addition, receivables from third-party credit card issuers typically converted to cash within 5 days of the original sales transaction are considered cash equivalents.

Borrowing Costs

(s) Borrowing costs

Borrowings comprise interest bearing bank loans and bank overdrafts. Borrowing costs are capitalized and amortized into interest expense over the contractual term of the related loan.

Share-Based Compensation

(t) Share-based compensation

Signet measures share-based compensation cost for awards classified as equity at the grant date, based on the estimated fair value of the award, and recognizes the cost as an expense on a straight-line basis (net of estimated forfeitures) over the requisite service period of employees. Certain of Signet’s share plans include a condition whereby vesting is contingent on growth exceeding a given target, and therefore awards granted with this condition are considered to be performance-based awards.

Signet estimates fair value using a Black-Scholes model for awards granted under the Omnibus Plan (as defined in Note 23 below) and the binomial valuation model for awards granted under the Share Saving Plans (as defined in Note 23 below). Deferred tax assets for awards that result in deductions on the income tax returns of subsidiaries are recorded by Signet based on the amount of compensation cost recognized and the subsidiaries’ statutory tax rate in the jurisdiction in which it will receive a deduction. Differences between the deferred tax assets recognized for financial reporting purposes and the actual tax deduction reported on the subsidiaries’ income tax return are recorded in additional paid-in-capital (if the tax deduction exceeds the deferred tax asset) or in the income statement (if the deferred tax asset exceeds the tax deduction and no additional paid-in-capital exists from previous awards).

Share-based compensation is primarily recorded in selling, general and administrative expenses in the income statement, along with the relevant salary cost.

See Note 23 for a further description of Signet’s share-based compensation plans.

Contingent Liabilities

(u) Contingent liabilities

Provisions for contingent liabilities are recorded for probable losses when management is able to reasonably estimate the loss or range of loss.

When it is reasonably possible that a contingent liability may result in a loss or additional loss, the range of the loss is disclosed.

Common shares and Dividends

(v) Common shares

When new shares are issued, they are recorded in Common Shares at their par value. The excess of the issue price over the par value is recorded in additional paid-in capital.

(w) Dividends

Dividends are reflected as a reduction of retained earnings in the period in which they are formally approved by the Board of Directors (the “Board”).

Recently Issued Accounting Pronouncements

(x) Recently issued accounting pronouncements

Adopted during the period

Reclassification out of Accumulated Other Comprehensive Income

In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” The new guidance does not change the current requirements for reporting net income or other comprehensive income, but it does require disclosure of amounts reclassified out of accumulated other comprehensive income by component, as well as require the presentation of these amounts on the face of the statements of comprehensive income or in the notes to the consolidated financial statements. ASU 2013-02 is effective for the reporting periods beginning after December 15, 2012. Signet adopted this guidance effective for the first quarter ended May 4, 2013 and the implementation of this accounting pronouncement did not have a material impact on Signet’s consolidated financial statements.

To be adopted in future periods

Presentation of Unrecognized Tax Benefit

In July 2013, the FASB issued ASU 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” The new guidance requires, unless certain conditions exist, an unrecognized tax benefit to be presented as a reduction to a deferred tax asset in the financial statements for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. The guidance in ASU 2013-11 will become effective for the Company prospectively for fiscal years beginning after December 15, 2013, and interim periods within those years, with early adoption permitted. Retrospective application is also permitted. Signet did not early adopt this guidance and it has determined that implementation will not have a material impact on Signet’s consolidated financial statements.

Reclassification

(y) Reclassification

Signet has reclassified the presentation of certain prior year information to conform to the current year presentation.

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Activity for Awards Granted Under the Plan (Detail) (USD $) In Millions, except Per Share data, unless otherwise specified	12 Months Ended
	Feb. 01, 2014		Feb. 02, 2013		Jan. 28, 2012
Omnibus Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding, Weighted Average Grant Date Fair Value, beginning balance	$ 40.86	[1]
Weighted Average Grant Date Fair Value, Granted	$ 66.10	[1],[2]	$ 46.12	[2]	$ 43.52	[2]
Weighted Average Grant Date Fair Value, Vested	$ 33.62	[1]
Weighted Average Grant Date Fair Value, Lapsed	$ 46.58	[1]
Outstanding, Weighted Average Grant Date Fair Value, ending balance	$ 51.44	[1]	$ 40.86	[1]
Outstanding, Weighted Average Remaining Contractual Life	1 year	[1]	1 year 1 month 6 days	[1]
Outstanding, No. of shares, beginning balance	1.2	[1]
No. of shares, Granted	0.3	[1]
No. of shares, Vested	(0.4)	[1]
No. of shares, Lapsed	(0.1)	[1]
Outstanding, No. of shares, ending balance	1.0	[1]	1.2	[1]
Outstanding, Intrinsic Value, beginning balance	$ 73.1	[1],[3]
Outstanding, Intrinsic Value, ending balance	80.1	[1],[3]	73.1	[1],[3]
Share Saving Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted Average Grant Date Fair Value, Granted	$ 22.89	[2]	$ 15.40	[2]	$ 11.55	[2]
Outstanding, Weighted Average Remaining Contractual Life	1 year 8 months 12 days		1 year 10 months 24 days
Outstanding, No. of shares, beginning balance	0.3
No. of shares, Granted	0.1
No. of shares, Exercised	(0.1)
Outstanding, No. of shares, ending balance	0.3		0.3
Outstanding, Weighted average exercise price, beginning balance	$ 32.48
Weighted average exercise price, Granted	$ 59.75
Weighted average exercise price, Exercised	$ 27.32
Weighted average exercise price, Lapsed
Outstanding, Weighted average exercise price, ending balance	$ 44.06		$ 32.48
Exercisable, Weighted Average Remaining Contractual Life
Outstanding, Intrinsic Value, beginning balance	9.8	[4]
Outstanding, Intrinsic Value, ending balance	9.4	[4]	9.8	[4]
Executive Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding, Weighted Average Remaining Contractual Life	3 years 5 months		3 years 4 months 24 days
Outstanding, No. of shares, beginning balance	0.3
No. of shares, Exercised	(0.2)
Outstanding, No. of shares, ending balance	0.1		0.3
Exercisable, No. of shares, beginning balance	0.3
Exercisable, No. of shares, ending balance	0.1		0.3
Outstanding, Weighted average exercise price, beginning balance	$ 39.07
Weighted average exercise price, Exercised	$ 39.28
Weighted average exercise price, Lapsed
Outstanding, Weighted average exercise price, ending balance	$ 39.11		$ 39.07
Exercisable, Weighted average exercise price, beginning balance	$ 39.07
Exercisable, Weighted average exercise price, ending balance	$ 39.11		$ 39.07
Exercisable, Weighted Average Remaining Contractual Life
Outstanding, Intrinsic Value, beginning balance	6.5	[4]
Outstanding, Intrinsic Value, ending balance	4.1	[4]	6.5	[4]
Exercisable, Intrinsic Value, beginning balance	6.5	[4]
Exercisable, Intrinsic Value, ending balance	$ 4.1	[4]	$ 6.5	[4]

[1] Includes shares issued to the CEO, whose contract includes share based compensation for amounts foregone from his prior employment.

[2] Weighted average.

[3] Intrinsic value for outstanding restricted stock and RSUs is based on the fair market value of Signet's common stock on the last business day of the fiscal year.

[4] Intrinsic value for outstanding awards is based on the fair market value of Signet's common stock on the last business day of the fiscal year.

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Compensation And Benefits (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Feb. 01, 2014	Feb. 02, 2013	Jan. 28, 2012
Compensation and benefits
Wages and salaries	$ 753.3	$ 713.4	$ 681.5
Payroll taxes	65.8	62.6	59.3
Employee benefit plans expense	10.2	12.9	11.3
Share-based compensation expense	14.4	15.7	17.0
Total compensation and benefits	$ 843.7	$ 804.6	$ 769.1

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Accrued expenses and other current liabilities

12 Months Ended

Feb. 01, 2014

Accrued expenses and other current liabilities

15. Accrued expenses and other current liabilities

	February 1, 2014		February 2, 2013
(in millions)
Accrued compensation	$	81.3	$	85.9
Other liabilities		50.1		48.7
Other taxes		31.7		31.9
Payroll taxes		8.0		7.4
Accrued expenses		157.4		152.5
Total accrued expenses and other current liabilities	$	328.5	$	326.4

Sales returns reserve included in accrued expenses above:

	Balance at beginning of period		Net adjustment(1)			Balance at end of period
(in millions)
Fiscal 2012	$	7.7	$	(0.4	)	$	7.3
Fiscal 2013		7.3		0.3			7.6
Fiscal 2014		7.6		0.8			8.4

(1) Net adjustment relates to sales returns previously provided for and changes in estimate and the impact of foreign exchange translation between opening and closing balance sheet dates.

The US division provides a product lifetime diamond and color gemstone guarantee as long as six-month inspections are performed and certified by an authorized store representative. Provided the customer has complied with the six month inspection policy, Signet will replace, at no cost to the customer, any stone that chips, breaks or is lost from its original setting during normal wear. Management estimates the warranty accrual based on the lag of actual claims experience and the costs of such claims, inclusive of labor and material. Warranty reserve for diamond and gemstone guarantee were as follows:

	Balance at beginning of period		Warranty expense		Utilized			Balance at end of period
(in millions)
Fiscal 2012	$	13.0	$	7.9	$	(5.8	)	$	15.1
Fiscal 2013		15.1		8.6		(5.2	)		18.5
Fiscal 2014		18.5		7.4		(6.8	)		19.1

Disclosed as:	February 1, 2014		February 2, 2013
(in millions)
Current liabilities(1)	$	6.7	$	6.9
Non-current liabilities (see Note 17)		12.4		11.6
Total warranty reserve	$	19.1	$	18.5

(1) Included within accrued expenses above.

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Segment information (Tables)

12 Months Ended

Feb. 01, 2014

Segment Reporting Information, By Segment

	Fiscal 2014			Fiscal 2013			Fiscal 2012
(in millions)
Sales:
US	$	3,517.6		$	3,273.9		$	3,034.1
UK		685.6			709.5			715.1
Other		6.0			—			—
Total sales	$	4,209.2		$	3,983.4		$	3,749.2
Operating income (loss):
US	$	553.2		$	547.8		$	478.0
UK		42.4			40.0			56.1
Other		(25.1	)		(27.3	)		(26.7	)
Total operating income	$	570.5		$	560.5		$	507.4
Depreciation and amortization:
US	$	88.8		$	75.9		$	69.0
UK		21.4			23.5			23.4
Other		—			—			—
Total depreciation and amortization	$	110.2		$	99.4		$	92.4
Capital additions:
US	$	134.2		$	110.9		$	75.6
UK		18.4			23.1			22.2
Other		0.1			0.2			—
Total capital additions	$	152.7		$	134.2		$	97.8
	February 1, 2014			February 2, 2013			January 28, 2012
(in millions)
Total assets:
US	$	3,311.0		$	2,979.2		$	2,747.5
UK		484.6			449.9			427.3
Other		233.6			289.9			436.6
Total assets	$	4,029.2		$	3,719.0		$	3,611.4
Total long-lived assets:
US	$	423.6		$	377.5		$	305.8
UK		81.1			76.8			77.0
Other		9.7			0.7			0.6
Total long-lived assets	$	514.4		$	455.0		$	383.4
Total liabilities:
US	$	1,299.3		$	1,243.4		$	1,166.3
UK		139.3			116.9			146.2
Other		27.5			28.8			19.8
Total liabilities	$	1,466.1		$	1,389.1		$	1,332.3

Sales By Product

	Fiscal 2014		Fiscal 2013		Fiscal 2012
(in millions)
Diamonds and diamond jewelry	$	2,552.1	$	2,410.7	$	2,183.3
Gold, silver jewelry, other products and services		1,236.9		1,116.5		1,133.5
Watches		420.2		456.2		432.4
Total sales	$	4,209.2	$	3,983.4	$	3,749.2

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Warranty Deferred Revenue (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Feb. 01, 2014	Feb. 02, 2013	Jan. 28, 2012
Deferred Revenue [Line Items]
ESP deferred revenue, beginning of period	$ 549.7	$ 511.7	$ 481.1
Plans sold	223.3	205.1	187.0
Revenue recognized	(171.8)	(167.1)	(156.4)
ESP deferred revenue, end of period	$ 601.2	$ 549.7	$ 511.7

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Share Repurchase Activity (Parenthetical) (Detail) (USD $) In Millions, unless otherwise specified	1 Months Ended	12 Months Ended		1 Months Ended	12 Months Ended
	Oct. 31, 2011 2011 Program	Feb. 01, 2014 2011 Program		Jun. 14, 2013 2013 Program	Feb. 01, 2014 2013 Program
Equity, Class of Treasury Stock [Line Items]
Stock repurchase program, authorized amount	$ 300.0	$ 350.0	[1]	$ 350.0	$ 350.0	[2]
Stock repurchase program, remaining available amount					$ 295.4

[1] In October 2011, the Board authorized the repurchase of up to $300 million of Signet's common shares (the "2011 Program"), which authorization was subsequently increased to $350 million. The 2011 Program was completed as of May 4, 2013.

[2] On June 14, 2013, the Board the repurchase of up to $350 million of Signet's common shares (the "2013 Program"). The 2013 Program may be suspended or discontinued at any time without notice. The 2013 Program had $295.4 million remaining as of February 1, 2014.

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Other Liabilities-Non-Current

12 Months Ended

Feb. 01, 2014

Other Liabilities-Non-Current

17. Other liabilities—non-current

	February 1, 2014		February 2, 2013
(in millions)
Straight-line rent	$	67.1	$	65.6
Deferred compensation		25.0		18.5
Warranty reserve		12.4		11.6
Lease loss reserve		5.8		8.1
Other liabilities		11.4		7.5
Total other liabilities	$	121.7	$	111.3

A lease loss reserve is recorded for the net present value of the difference between the contractual rent obligations and the rate at which income is received or expected to be received from subleasing the properties.

	February 1, 2014			February 2, 2013
(in millions)
At beginning of period:	$	8.1		$	9.6
Adjustments, net		(1.6	)		(1.1	)
Utilization(1)		(0.7	)		(0.4	)
At end of period	$	5.8		$	8.1

(1) Including the impact of foreign exchange translation between opening and closing balance sheet dates.

The cash expenditures on the remaining lease loss reserve are expected to be paid over the various remaining lease terms through 2023.

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Reconciliation Of Effective Tax Rate (Detail)	12 Months Ended
	Feb. 01, 2014	Feb. 02, 2013	Jan. 28, 2012
Effective Income Tax Rate Reconciliation, Percent [Abstract]
US federal income tax rates	35.00%	35.00%	35.00%
US state income taxes	2.50%	2.70%	2.70%
Differences between US federal and foreign statutory income tax rates	(0.90%)	(0.60%)	(1.00%)
Expenditures permanently disallowable for tax purposes, net of permanent tax benefits	0.60%	0.80%	1.10%
Benefit of intra-group financing and services arrangements	(2.10%)	(2.10%)	(2.00%)
Other items	(0.10%)	(0.40%)	(0.40%)
Effective tax rate	35.00%	35.40%	35.40%

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Effect of Derivative Instruments Designated as Cash Flow Hedges (Parenthetical) (Detail) (Cash Flow Hedging, Commodity Contract, USD $) In Millions, unless otherwise specified	12 Months Ended
	Feb. 01, 2014
Cash Flow Hedging | Commodity Contract
Derivative Instruments, Gain (Loss) [Line Items]
Losses related to change in fair value of commodity contracts terminated prior to contract maturity	$ 27.8

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Consolidated Statements Of Shareholders' Equity (USD $) In Millions	Total	Common shares at par value	Additional paid-in- capital	Other reserves	Treasury shares	Retained earnings	Accumulated other comprehensive (loss) income
Balance at Jan. 28, 2011	$ 1,939.0	$ 15.5	$ 196.8	$ 235.2		$ 1,662.3	$ (170.8)
Net income	324.4					324.4
Other comprehensive income	11.6						11.6
Dividends	(17.4)					(17.4)
Repurchase of common shares	(12.7)				(12.7)
Share options exercised	14.6	0.1	14.5
Share-based compensation expense	19.6		19.6
Balance at Jan. 28, 2012	2,279.1	15.6	230.9	235.2	(12.7)	1,969.3	(159.2)
Net income	359.9					359.9
Other comprehensive income	(16.5)						(16.5)
Dividends	(39.5)					(39.5)
Repurchase of common shares	(287.2)				(287.2)
Net settlement of equity based awards	(11.5)		(7.4)		10.8	(14.9)
Share options exercised	29.9	0.1	7.1		29.1	(6.4)
Share-based compensation expense	15.7		15.7
Balance at Feb. 02, 2013	2,329.9	15.7	246.3	235.2	(260.0)	2,268.4	(175.7)
Net income	368.0					368.0
Other comprehensive income	(2.8)						(2.8)
Dividends	(48.2)					(48.2)
Repurchase of common shares	(104.7)				(104.7)
Net settlement of equity based awards	(2.7)		(1.7)		7.1	(8.1)
Share options exercised	9.2		(0.2)		11.4	(2.0)
Share-based compensation expense	14.4		14.4
Balance at Feb. 01, 2014	$ 2,563.1	$ 15.7	$ 258.8	$ 235.2	$ (346.2)	$ 2,578.1	$ (178.5)

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Consolidated Statements Of Comprehensive Income (USD $) In Millions, unless otherwise specified	12 Months Ended
	Feb. 01, 2014	Feb. 02, 2013	Jan. 28, 2012
Other comprehensive income (loss), pre tax amount:
Foreign currency translation adjustments, pre tax amount	$ 12.4	$ (0.5)	$ (3.9)
Cash flow hedges, pre tax amount:
Unrealized (loss) gain, pre tax amount	(33.0)	(10.4)	49.7
Reclassification adjustment for losses (gains) to net income, pre tax amount	11.1	(22.4)	(24.6)
Pension plan, pre tax amount:
Actuarial gain (loss), pre tax amount	0.2	6.2	(10.8)
Reclassification adjustment to net income for amortization of actuarial loss, pre tax amount	2.3	3.2	2.6
Prior service (benefit) costs, pre tax amount	(0.9)	(1.1)	7.5
Reclassification adjustment to net income for amortization of prior service credits, pre tax amount	(1.5)	(1.6)	(1.0)
Total other comprehensive (loss) income, pre tax amount	(9.4)	(26.6)	19.5
Other comprehensive income (loss), tax (expense) benefit:
Foreign currency translation adjustments, tax (expense) benefit
Cash flow hedges,tax (expense) benefit:
Unrealized (loss) gain, tax (expense) benefit	11.0	3.7	(17.5)
Reclassification adjustment for losses (gains) to net income, tax (expense) benefit	(4.4)	8.0	8.6
Pension plan,tax (expense) benefit:
Actuarial gain (loss), tax (expense) benefit		(1.5)	3.5
Reclassification adjustment to net income for amortization of actuarial loss, tax (expense) benefit	(0.6)	(0.8)	(0.8)
Prior service (benefit) costs, tax (expense) benefit	0.2	0.3	(2.0)
Reclassification adjustment to net income for amortization of prior service credits, tax (expense) benefit	0.4	0.4	0.3
Total other comprehensive (loss) income, tax (expense) benefit	6.6	10.1	(7.9)
Net income	368.0	359.9	324.4
After-tax amount, Other comprehensive income (loss):
After-tax amount, Foreign currency translation adjustments	12.4	(0.5)	(3.9)
After-tax amount, Cash flow hedges:
After-tax amount, Unrealized (loss) gain	(22.0)	(6.7)	32.2
(Gains) losses on cash flow hedges reclassification, net of tax	6.7	(14.4)	(16.0)
After-tax amount, Pension plan:
After-tax amount, Actuarial gain (loss)	0.2	4.7	(7.3)
After-tax amount, Reclassification adjustment to net income for amortization of actuarial loss	1.7	2.4	1.8
After-tax amount, Prior service (benefit) costs	(0.7)	(0.8)	5.5
After-tax amount, Reclassification adjustment to net income for amortization of prior service credits	(1.1)	(1.2)	(0.7)
After-tax amount, Total other comprehensive (loss) income	(2.8)	(16.5)	11.6
Total comprehensive income	$ 365.2	$ 343.4	$ 336.0

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Accounts receivable, net

12 Months Ended

Feb. 01, 2014

Accounts receivable, net

10. 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 and any amount associated with an account the owner of which has filed for bankruptcy, 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.

	February 1, 2014		February 2, 2013
(in millions)
Accounts receivable by portfolio segment, net:
US customer in-house finance receivables	$	1,356.0	$	1,192.9
Other accounts receivable		18.0		12.4
Total accounts receivable, net	$	1,374.0	$	1,205.3

Signet grants credit to customers based on a variety of credit quality indicators, including consumer 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 primarily of gross accounts receivable relating to the insurance loss replacement business in the UK division of $12.8 million (Fiscal 2013: $13.0 million), with a corresponding valuation allowance of $0.3 million (Fiscal 2013: $0.6 million).

Allowance for credit losses on US customer in-house finance receivables:

	Fiscal 2014			Fiscal 2013			Fiscal 2012
(in millions)
Beginning balance:	$	(87.7	)	$	(78.1	)	$	(67.8	)
Charge-offs		128.2			112.8			92.8
Recoveries		26.0			21.8			19.3
Provision		(164.3	)		(144.2	)		(122.4	)
Ending balance	$	(97.8	)	$	(87.7	)	$	(78.1	)
Ending receivable balance evaluated for impairment		1,453.8			1,280.6			1,155.5
US customer in-house finance receivables, net	$	1,356.0		$	1,192.9		$	1,077.4

Net bad debt expense is defined as the provision expense less recoveries.

Credit quality indicator and age analysis of past due US customer in-house finance receivables:

	February 1, 2014					February 2, 2013					January 28, 2012
	Gross		Valuation allowance			Gross		Valuation allowance			Gross		Valuation allowance
(in millions)
Performing:
Current, aged 0 – 30 days	$	1,170.4	$	(36.3	)	$	1,030.3	$	(33.8	)	$	932.6	$	(28.9	)
Past due, aged 31 – 90 days		229.9		(8.0	)		203.9		(7.5	)		180.2		(6.5	)
Non Performing:
Past due, aged more than 90 days		53.5		(53.5	)		46.4		(46.4	)		42.7		(42.7	)
	$	1,453.8	$	(97.8	)	$	1,280.6	$	(87.7	)	$	1,155.5	$	(78.1	)

	February 1, 2014						February 2, 2013						January 28, 2012
	Gross			Valuation allowance			Gross			Valuation allowance			Gross			Valuation allowance
(as a percentage of the ending receivable balance)
Performing		96.3	%		3.2	%		96.4	%		3.3	%		96.3	%		3.2	%
Non Performing		3.7	%		100.0	%		3.6	%		100.0	%		3.7	%		100.0	%
		100.0	%		6.7	%		100.0	%		6.8	%		100.0	%		6.8	%

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Financial Instruments and Fair Value - Additional Information (Detail) (USD $) In Millions, unless otherwise specified			12 Months Ended			1 Months Ended	12 Months Ended
	Feb. 01, 2014	Feb. 02, 2013	Feb. 01, 2014 Maximum	Feb. 01, 2014 Foreign Exchange Contract Not Designated as Hedging Instrument	Feb. 02, 2013 Foreign Exchange Contract Not Designated as Hedging Instrument	May 24, 2011 Revolving Credit Facility	Feb. 01, 2014 Revolving Credit Facility	Feb. 01, 2014 Cash Flow Hedging	Feb. 01, 2014 Cash Flow Hedging Foreign Exchange Contract	Feb. 02, 2013 Cash Flow Hedging Foreign Exchange Contract	Feb. 01, 2014 Cash Flow Hedging Commodity Contract	Feb. 02, 2013 Cash Flow Hedging Commodity Contract
Financial Instruments and Fair Value [Line Items]
Amount of agreement in place for senior unsecured multi-currency five-year revolving credit external funding	$ 400					$ 400
Debt instrument, maturity period						5 years	5 years
Borrowings on unsecured senior revolving credit agreement	0	0
Total notional amount				22.1	36.1				42.3	50.8	63.0	187.6
Cash flow hedges settlement period									These contracts have been designated as cash flow hedges and will be settled over the next 12 months (February 2, 2013 12 months).		These contracts have been designated as cash flow hedges and will be settled over the next 12 months (February 2, 2013 11 months).
Contracts maturity period			12 months						12 months	12 months	12 months	11 months
Derivative losses to be reclassified out of AOCI								$ 19.5

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Sales Return Reserve (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Feb. 01, 2014		Feb. 02, 2013		Jan. 28, 2012
Accrued Expenses and Other Current Liabilities [Line Items]
Sales returns reserve, Balance at beginning of period	$ 7.6		$ 7.3		$ 7.7
Sales returns reserve, net adjustment	0.8	[1]	0.3	[1]	(0.4)	[1]
Sales returns reserve, Balance at end of period	$ 8.4		$ 7.6		$ 7.3

[1] Net adjustment relates to sales returns previously provided for and changes in estimate and the impact of foreign exchange translation between opening and closing balance sheet dates.

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Purchase Price Allocation to Net Assets Acquired (Detail) (USD $) In Millions, unless otherwise specified			1 Months Ended
	Feb. 01, 2014	Feb. 02, 2013	Oct. 29, 2012 Initial Allocation		Oct. 29, 2012 Final Allocation		May 15, 2013 Change
Recognized amounts of assets acquired and liabilities assumed:
Inventories			$ 43.3		$ 43.3
Other current assets, excluding cash acquired			3.3		3.3
Property and equipment			12.1		12.1
Other assets			0.3		0.3
Current liabilities			(19.5)		(19.5)
Other liabilities			(7.4)		(7.4)
Fair value of net assets acquired			32.1		32.1
Goodwill	26.8	24.6	24.6	[1]	23.2	[1]
Total consideration			56.7		55.3
Goodwill							(1.4)	[1]
Total consideration							$ (1.4)

[1] None of the goodwill will be deductible for income tax purposes. The goodwill balance is recorded within other assets in the consolidated balance sheet.

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Share Repurchase Activity (Detail) (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended			1 Months Ended	12 Months Ended						1 Months Ended	12 Months Ended
	Feb. 01, 2014	Feb. 02, 2013	Jan. 28, 2012	Oct. 31, 2011 2011 Program	Feb. 01, 2014 2011 Program		Feb. 02, 2013 2011 Program		Jan. 28, 2012 2011 Program		Jun. 14, 2013 2013 Program	Feb. 01, 2014 2013 Program		Feb. 02, 2013 2013 Program		Jan. 28, 2012 2013 Program
Equity, Class of Treasury Stock [Line Items]
Amount Authorized				$ 300.0	$ 350.0	[1]					$ 350.0	$ 350.0	[2]
Shares repurchased	1,557,673	6,425,296	256,241		749,245	[1]	6,425,296	[1]	256,241	[1]		808,428	[2]		[2],[3]		[2],[3]
Amount repurchased	$ 104.7	$ 287.2	$ 12.7		$ 50.1	[1]	$ 287.2	[1]	$ 12.7	[1]		$ 54.6	[2]		[2],[3]		[2],[3]
Average repurchase price	$ 67.24	$ 44.70	$ 49.57		$ 66.92	[1]	$ 44.70	[1]	$ 49.57	[1]		$ 67.54	[2]		[2],[3]		[2],[3]

[1] In October 2011, the Board authorized the repurchase of up to $300 million of Signet's common shares (the "2011 Program"), which authorization was subsequently increased to $350 million. The 2011 Program was completed as of May 4, 2013.

[2] On June 14, 2013, the Board the repurchase of up to $350 million of Signet's common shares (the "2013 Program"). The 2013 Program may be suspended or discontinued at any time without notice. The 2013 Program had $295.4 million remaining as of February 1, 2014.

[3] Not applicable.

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Summary of Additional Information about Awards Granted (Detail) (USD $) In Millions, except Per Share data, unless otherwise specified	12 Months Ended
	Feb. 01, 2014		Feb. 02, 2013		Jan. 28, 2012
Omnibus Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total intrinsic value of awards vested	$ 25.3		$ 28.5		$ 0.5
Weighted average grant date fair value per share of awards granted	$ 66.10	[1],[2]	$ 46.12	[1]	$ 43.52	[1]
Share Saving Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant date fair value per share of awards granted	$ 22.89	[1]	$ 15.40	[1]	$ 11.55	[1]
Total intrinsic value of options exercised	4.9		3.3		1.1
Cash received from share options exercised	2.9		2.7		3.2
Executive Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total intrinsic value of options exercised	4.8		9.0		5.2
Cash received from share options exercised	$ 6.3		$ 18.9		$ 7.4

[1] Weighted average.

[2] Includes shares issued to the CEO, whose contract includes share based compensation for amounts foregone from his prior employment.

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Summary of Expected Benefit Payments (Detail) (UK Plan, USD $) In Millions, unless otherwise specified	Feb. 01, 2014
UK Plan
Defined Benefit Plan Disclosure [Line Items]
Fiscal 2015	$ 9.3
Fiscal 2016	10.3
Fiscal 2017	10.7
Fiscal 2018	10.3
Fiscal 2019	11.9
Fiscal 2020 to Fiscal 2024	$ 62.2

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Document and Entity Information	12 Months Ended
	Feb. 01, 2014
Document Information [Line Items]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Feb. 01, 2014
Trading Symbol	SIG
Entity Registrant Name	SIGNET JEWELERS LTD
Entity Central Index Key	0000832988

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Future Minimum Operating Lease Payments for Operating Leases (Detail) (USD $) In Millions, unless otherwise specified	Feb. 01, 2014
Future minimum operating lease payments
Fiscal 2015	$ 311.1
Fiscal 2016	275.4
Fiscal 2017	245.8
Fiscal 2018	212.6
Fiscal 2019	181.8
Thereafter	937.7
Total	$ 2,164.4

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Inventories

12 Months Ended

Feb. 01, 2014

Inventories

11. Inventories

Signet held $312.6 million of consignment inventory at February 1, 2014 (February 2, 2013: $227.7 million) which is not recorded on the balance sheet. The principal terms of the consignment agreements, which can generally be terminated by either party, are such that Signet can return any or all of the inventory to the relevant suppliers without financial or commercial penalties and the supplier can vary the inventory prices prior to sale.

Inventories

	February  1, 2014		February  2, 2013
(in millions)
Raw materials	$	41.8	$	41.2
Finished goods		1,446.2		1,355.8
Total inventories	$	1,488.0	$	1,397.0

Inventory reserves

	Balance at beginning of period		Charged to profit		Utilized(1)			Balance at end of period
(in millions)
Fiscal 2012	$	27.8	$	18.4	$	(16.9	)	$	29.3
Fiscal 2013		29.3		23.6		(29.5	)		23.4
Fiscal 2014		23.4		33.3		(40.4	)		16.3

(1) Including the impact of foreign exchange translation between opening and closing balance sheet dates.

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Accounts Receivable by Portfolio Segment, Net (Detail) (USD $) In Millions, unless otherwise specified	Feb. 01, 2014	Feb. 02, 2013	Jan. 28, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total accounts receivable, net	$ 1,374.0	$ 1,205.3
US Customer In-House Finance Receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total accounts receivable, net	1,356.0	1,192.9	1,077.4
Other Accounts Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total accounts receivable, net	$ 18.0	$ 12.4

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Acquisitions - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended				1 Months Ended	12 Months Ended	1 Months Ended		12 Months Ended		1 Months Ended
	Feb. 01, 2014		Feb. 02, 2013		Nov. 04, 2013 Botswana Diamond Polishing Factory Acquisition	Feb. 01, 2014 Botswana Diamond Polishing Factory Acquisition	May 15, 2013 Ultra Acquisition	Oct. 29, 2012 Ultra Acquisition	Feb. 01, 2014 Ultra Acquisition	Feb. 02, 2013 Ultra Acquisition	Oct. 29, 2012 Ultra Acquisition Initial	May 15, 2013 Ultra Acquisition Final Payment
Business Acquisition [Line Items]
Total consideration					$ 9.1
Property, plant and equipment acquired					5.5
Goodwill acquired	2.2	[1]	24.6	[1]	3.6
Business acquisition cash paid, initial						9.1			(1.4)	56.7	56.7	55.3
Business acquisition, cash acquired								1.5
Business acquisition, working capital adjustment								1.4
Refund from the initial consideration paid							1.4
Acquisition-related expenses								$ 3.0

[1] See Note 14 for additional discussion of the goodwill recorded by the Company during Fiscal 2014 and Fiscal 2013.

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Consolidated Balance Sheets (USD $) In Millions, unless otherwise specified	Feb. 01, 2014	Feb. 02, 2013
Current assets:
Cash and cash equivalents	$ 247.6	$ 301.0
Accounts receivable, net	1,374.0	1,205.3
Other receivables	51.5	42.1
Other current assets	87.0	85.6
Deferred tax assets	3.0	1.6
Income taxes	6.5	3.5
Inventories	1,488.0	1,397.0
Total current assets	3,257.6	3,036.1
Non-current assets:
Property, plant and equipment, net	487.6	430.4
Other assets	114.0	99.9
Deferred tax assets	113.7	104.1
Retirement benefit asset	56.3	48.5
Total assets	4,029.2	3,719.0
Current liabilities:
Loans and overdrafts	19.3
Accounts payable	162.9	155.9
Accrued expenses and other current liabilities	328.5	326.4
Deferred revenue	173.0	159.7
Deferred tax liabilities	113.1	129.6
Income taxes	103.9	100.3
Total current liabilities	900.7	871.9
Non-current liabilities:
Other liabilities	121.7	111.3
Deferred revenue	443.7	405.9
Total liabilities	1,466.1	1,389.1
Commitments and contingencies
Shareholders' equity:
Common shares of $0.18 par value: authorized 500 shares, 80.2 shares outstanding (2013: 81.4 outstanding)	15.7	15.7
Additional paid-in capital	258.8	246.3
Other reserves	235.2	235.2
Treasury shares at cost: 7.0 shares (2013: 5.8 shares)	(346.2)	(260.0)
Retained earnings	2,578.1	2,268.4
Accumulated other comprehensive loss	(178.5)	(175.7)
Total shareholders' equity	2,563.1	2,329.9
Total liabilities and shareholders' equity	$ 4,029.2	$ 3,719.0

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Income taxes

12 Months Ended

Feb. 01, 2014

Income taxes

5. Income taxes

	Fiscal 2014			Fiscal 2013		Fiscal 2012
(in millions)
Income before income taxes:
– US	$	493.7		$	494.3	$	423.2
– Foreign		72.8			62.6		78.9
Total income before income taxes	$	566.5		$	556.9	$	502.1
Current taxation:
– US	$	211.8		$	186.6	$	136.9
– Foreign		7.1			6.1		11.5
Deferred taxation:
– US		(22.8	)		3.1		26.1
– Foreign		2.4			1.2		3.2
Total income taxes	$	198.5		$	197.0	$	177.7

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

	Fiscal 2014			Fiscal 2013			Fiscal 2012
	%			%			%
US federal income tax rates		35.0			35.0			35.0
US state income taxes		2.5			2.7			2.7
Differences between US federal and foreign statutory income tax rates		(0.9	)		(0.6	)		(1.0	)
Expenditures permanently disallowable for tax purposes, net of permanent tax benefits		0.6			0.8			1.1
Benefit of intra-group financing and services arrangements		(2.1	)		(2.1	)		(2.0	)
Other items		(0.1	)		(0.4	)		(0.4	)
Effective tax rate		35.0			35.4			35.4

Signet’s effective tax rate is largely impacted by the relative proportion of US and foreign income tax expense. In Fiscal 2014, Signet’s effective tax rate was the same as the US federal income tax rate because the US state income tax expense was substantially offset by the benefit of intra-group financing and services arrangements. Signet’s future effective tax rate is dependent on changes in the geographic mix of income and the movement in foreign exchange translation rates.

Deferred tax assets (liabilities) consisted of the following:

	February 1, 2014									February 2, 2013
	Assets			(Liabilities)			Total			Assets			(Liabilities)			Total
(in millions)
US property, plant and equipment	$	—		$	(70.1	)	$	(70.1	)	$	—		$	(55.8	)	$	(55.8	)
Foreign property, plant and equipment		7.0			—			7.0			6.7			—			6.7
Inventory valuation		—			(169.2	)		(169.2	)		—			(188.6	)		(188.6	)
Allowances for doubtful accounts		39.7			—			39.7			36.6			—			36.6
Revenue deferral		134.3			—			134.3			122.4			—			122.4
Derivative instruments		6.9			—			6.9			—			—			—
Straight-line lease payments		27.5			—			27.5			26.8			—			26.8
Deferred compensation		9.9			—			9.9			7.7			—			7.7
Retirement benefit obligations		—			(12.0	)		(12.0	)		—			(11.2	)		(11.2	)
Share-based compensation		10.3			—			10.3			10.7			—			10.7
US state income tax accruals		5.3			—			5.3			5.6			—			5.6
Other temporary differences		15.0			—			15.0			16.2			—			16.2
Value of foreign capital losses		15.8			—			15.8			16.5			—			16.5
Total gross deferred tax asset (liability)	$	271.7		$	(251.3	)	$	20.4		$	249.2		$	(255.6	)	$	(6.4	)
Valuation allowance		(16.8	)		—			(16.8	)		(17.5	)		—			(17.5	)
Deferred tax asset (liability)	$	254.9		$	(251.3	)	$	3.6		$	231.7		$	(255.6	)	$	(23.9	)
Current assets							$	3.0								$	1.6
Current liabilities								(113.1	)								(129.6	)
Non-current assets								113.7									104.1
Deferred tax asset (liability)							$	3.6								$	(23.9	)

As of February 1, 2014 Signet had foreign gross capital loss carry forwards of $74.2 million (Fiscal 2013: $71.0 million) which are only available to offset future capital gains, if any, over an indefinite period.

The decrease in the total valuation allowance in Fiscal 2014 was $0.7 million due to changes in foreign exchange translation and tax rates (Fiscal 2013: $3.6 million net decrease; Fiscal 2012: $1.5 million net decrease). The valuation allowance primarily relates to foreign capital loss carry forwards that, in the judgment of management, are not more likely than not to be realized.

Signet believes that it is more likely than not that deferred tax assets not subject to a valuation allowance as of February 1, 2014 will be offset where permissible by deferred tax liabilities or realized on future tax returns, primarily from the generation of future taxable income.

Signet has business activity in all states within the US and files income tax returns for the US federal jurisdiction and all applicable states. Signet also files income tax returns in the UK and certain other foreign jurisdictions. Signet is subject to US federal and state examinations by tax authorities for tax years after November 1, 2008 and is subject to examination by the UK tax authority for tax years after January 31, 2012.

As of February 1, 2014 Signet had approximately $4.6 million (Fiscal 2013: $4.5 million; Fiscal 2012: $4.8 million) of unrecognized tax benefits in respect of uncertain tax positions, all of which would favorably affect the effective income tax rate if resolved in Signet’s favor. These unrecognized tax benefits relate to financing arrangements and intra-group charges which are subject to different and changing interpretations of tax law.

Signet recognizes accrued interest and, where appropriate, penalties related to unrecognized tax benefits within income tax expense. In Fiscal 2014, the total amount of interest recognized in income tax expense in the consolidated income statement was $0.1 million, net charge (Fiscal 2013: $0.2 million, net credit; Fiscal 2012: $0.1 million, net credit). As of February 1, 2014, Signet had accrued interest of $0.3 million (Fiscal 2013: $0.2 million; Fiscal 2012: $0.4 million).

The following table summarizes the activity related to unrecognized tax benefits:

	Fiscal 2014			Fiscal 2013			Fiscal 2012
(in millions)
Balance at beginning of period	$	4.5		$	4.8		$	9.0
Increases related to current year tax positions		0.4			0.2			0.3
Prior year tax positions:
Increases		0.2			—			—
Decreases		—			—			(1.4	)
Cash settlements		(0.5	)		—			(2.6	)
Lapse of statute of limitations		—			(0.5	)		(0.5	)
Balance at end of period	$	4.6		$	4.5		$	4.8

Over the next twelve months management believes that it is reasonably possible that there could be a reduction of substantially all of the unrecognized tax benefits as of February 1, 2014, due to settlement of the uncertain tax positions with the tax authorities.

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Compensation and Benefits

12 Months Ended

Feb. 01, 2014

Compensation and Benefits

4. Compensation and benefits

Compensation and benefits were as follows:

	Fiscal 2014		Fiscal 2013		Fiscal 2012
(in millions)
Wages and salaries	$	753.3	$	713.4	$	681.5
Payroll taxes		65.8		62.6		59.3
Employee benefit plans expense		10.2		12.9		11.3
Share-based compensation expense		14.4		15.7		17.0
Total compensation and benefits	$	843.7	$	804.6	$	769.1

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Deferred Revenue

12 Months Ended

Feb. 01, 2014

Deferred Revenue

16. Deferred revenue

Deferred revenue is comprised primarily of extended service plans (“ESP”) and voucher promotions and other as follows:

	February 1, 2014		February 2, 2013
(in millions)
ESP deferred revenue	$	601.2	$	549.7
Voucher promotions and other		15.5		15.9
Total deferred revenue	$	616.7	$	565.6
Disclosed as:
Current liabilities	$	173.0	$	159.7
Non-current liabilities		443.7		405.9
Total deferred revenue	$	616.7	$	565.6

ESP deferred revenue

	Balance at beginning of period		Plans sold		Revenue recognized			Balance at end of period
(in millions)
Fiscal 2012	$	481.1	$	187.0	$	(156.4	)	$	511.7
Fiscal 2013		511.7		205.1		(167.1	)		549.7
Fiscal 2014		549.7		223.3		(171.8	)		601.2

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Other Assets

12 Months Ended

Feb. 01, 2014

Other Assets

12. Other assets

	February 1, 2014		February 2, 2013
(in millions)
Deferred extended service plan costs	$	61.9	$	56.9
Goodwill		26.8		24.6
Other assets		25.3		18.4
Total other assets	$	114.0	$	99.9

Goodwill

The following table summarizes the Company’s goodwill by reporting unit:

	US			UK		Other		Total
(in millions)
Balance at January 28, 2012	$	—		$	—	$	—	$	—
Acquisition(1)		24.6			—		—		24.6
Balance at February 2, 2013		24.6			—		—		24.6
Acquisitions(1)		(1.4	)		—		3.6		2.2
Balance at February 1, 2014	$	23.2		$	—	$	3.6	$	26.8

(1) See Note 14 for additional discussion of the goodwill recorded by the Company during Fiscal 2014 and Fiscal 2013.

The Company’s reporting units align with the operating segments disclosed in Note 2. There have been no goodwill impairment losses recorded during the fiscal periods presented in the consolidated income statements. If future economic conditions are different than those projected by management, future impairment charges may be required.

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Inventories (Detail) (USD $) In Millions, unless otherwise specified	Feb. 01, 2014	Feb. 02, 2013
Inventories
Raw materials	$ 41.8	$ 41.2
Finished goods	1,446.2	1,355.8
Inventories	$ 1,488.0	$ 1,397.0

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Accumulated other comprehensive income (loss)

12 Months Ended

Feb. 01, 2014

Accumulated other comprehensive income (loss)

8. Accumulated other comprehensive income (loss)

The following tables present the changes in accumulated OCI by component and the reclassifications out of accumulated OCI:

							Pension plan
	Foreign currency translation			Gains (losses) on cash flow hedges			Actuarial (losses) gains			Prior service credit (cost)			Accumulated other comprehensive (loss) income
(in millions)
Balance at January 29, 2011	$	(145.0	)	$	5.9		$	(46.0	)	$	14.3		$	(170.8	)
OCI before reclassifications		(3.9	)		32.2			(7.3	)		5.5			26.5
Amounts reclassified from accumulated OCI		—			(16.0	)		1.8			(0.7	)		(14.9	)
Net current-period OCI		(3.9	)		16.2			(5.5	)		4.8			11.6
Balance at January 28, 2012		(148.9	)		22.1			(51.5	)		19.1			(159.2	)
OCI before reclassifications		(0.5	)		(6.7	)		4.7			(0.8	)		(3.3	)
Amounts reclassified from accumulated OCI		—			(14.4	)		2.4			(1.2	)		(13.2	)
Net current-period OCI		(0.5	)		(21.1	)		7.1			(2.0	)		(16.5	)
Balance at February 2, 2013		(149.4	)		1.0			(44.4	)		17.1			(175.7	)
OCI before reclassifications		12.4			(22.0	)		0.2			(0.7	)		(10.1	)
Amounts reclassified from accumulated OCI		—			6.7			1.7			(1.1	)		7.3
Net current-period OCI		12.4			(15.3	)		1.9			(1.8	)		(2.8	)
Balance at February 1, 2014	$	(137.0	)	$	(14.3	)	$	(42.5	)	$	15.3		$	(178.5	)

The amounts reclassified from accumulated OCI were as follows:

Reclassification activity by individual accumulated OCI component:	Fiscal 2014			Fiscal 2013			Fiscal 2012			Income statement caption
	Amounts reclassified from accumulated OCI			Amounts reclassified from accumulated OCI			Amounts reclassified from accumulated OCI
(in millions)
(Gains) losses on cash flow hedges:
Foreign currency contracts	$	(0.9	)	$	(0.4	)	$	(0.1	)	Cost of sales (see Note 19)
Commodity contracts		12.0			(22.0	)		(24.5	)	Cost of sales (see Note 19)
Total before income tax		11.1			(22.4	)		(24.6	)
		(4.4	)		8.0			8.6		Income taxes
Net of tax		6.7			(14.4	)		(16.0	)
Defined benefit pension plan items:
Amortization of unrecognized net prior service credit		(1.5	)		(1.6	)		(1.0	)	Selling, general and administrative expenses(1)
Amortization of unrecognized actuarial loss		2.3			3.2			2.6		Selling, general and administrative expenses(1)
Total before income tax		0.8			1.6			1.6
		(0.2	)		(0.4	)		(0.5	)	Income taxes
Net of tax		0.6			1.2			1.1
Total reclassifications, net of tax	$	7.3		$	(13.2	)	$	(14.9	)

(1) These items are included in the computation of net periodic pension benefit (cost). See Note 20 for additional information.

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Principal Accounting Policies - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Feb. 01, 2014 Segment	Feb. 02, 2013	Jan. 28, 2012
Principal Accounting Policies [Line Items]
Number of reportable segments	2
Revenue from sale over deferred period	14 years
Revenue recognized in relation to cost incurred	45.00%	46.00%
Revenue recognized in relation to the costs expected to be incurred, period	2 years
Gross advertising costs	$ 253.8	$ 245.8	$ 208.6
Minimum accrued interest suspension period	90 days
Allowance on losses	100.00%
Maturity of allowance period	90 days
Finance receivable age	90 days
Period which receivables are charged to cost of sales, recency method	120 days
Period which receivables are charged to cost of sales, contractual method	240 days
Minimum
Principal Accounting Policies [Line Items]
Period over which amortization is charged for capitalized payroll for internal use computer project	3 years
Maximum
Principal Accounting Policies [Line Items]
Period over which amortization is charged for capitalized payroll for internal use computer project	5 years
Buildings, Owned Land | Minimum
Principal Accounting Policies [Line Items]
Property and equipment, estimated useful lives, (in years)	30 years
Buildings, Owned Land | Maximum
Principal Accounting Policies [Line Items]
Property and equipment, estimated useful lives, (in years)	40 years
Buildings, Leased Land | Maximum
Principal Accounting Policies [Line Items]
Property and equipment, estimated useful lives, (in years)	40 years
Leasehold Improvements | Maximum
Principal Accounting Policies [Line Items]
Property and equipment, estimated useful lives, (in years)	10 years
Furniture and Fixtures | Minimum
Principal Accounting Policies [Line Items]
Property and equipment, estimated useful lives, (in years)	3 years
Furniture and Fixtures | Maximum
Principal Accounting Policies [Line Items]
Property and equipment, estimated useful lives, (in years)	10 years
Equipment Including Software | Minimum
Principal Accounting Policies [Line Items]
Property and equipment, estimated useful lives, (in years)	3 years
Equipment Including Software | Maximum
Principal Accounting Policies [Line Items]
Property and equipment, estimated useful lives, (in years)	5 years

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Summary of Changes in Fair Value of Plan Assets (Detail) (UK Plan, USD $) In Millions, unless otherwise specified	12 Months Ended
	Feb. 01, 2014	Feb. 02, 2013
UK Plan
Change in UK Plan assets:
Beginning Balance	$ 261.1	$ 236.0
Actual return on UK Plan assets	13.1	22.1
Employer contributions	4.9	13.7
Members' contributions	0.7	0.5
Benefits paid	(9.3)	(10.9)
Foreign currency changes	12.1	(0.3)
Ending Balance	$ 282.6	$ 261.1

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Earnings Per Share

12 Months Ended

Feb. 01, 2014

Earnings Per Share

6. Earnings per share

	Fiscal 2014		Fiscal 2013		Fiscal 2012
(in millions, except per share amounts)
Net income	$	368.0	$	359.9	$	324.4
Basic weighted average number of shares outstanding		80.2		82.3		86.2
Dilutive effect of share awards		0.5		0.5		0.8
Diluted weighted average number of shares outstanding		80.7		82.8		87.0
Earnings per share – basic	$	4.59	$	4.37	$	3.76
Earnings per share – diluted	$	4.56	$	4.35	$	3.73

The basic weighted average number of shares excludes non-vested time-based restricted shares, shares held by the Employee Stock Ownership Trust (“ESOT”) and treasury shares. Such shares are not considered outstanding and do not qualify for dividends, except for time-based restricted shares for which dividends are earned and payable by the Company subject to full vesting. The effect of excluding these shares is to reduce the average number of shares in Fiscal 2014 by 6,961,632 (Fiscal 2013: 4,882,625; Fiscal 2012: 576,427). The calculation of fully diluted EPS for Fiscal 2014 excludes share awards to acquire 70,447 shares (Fiscal 2013: 192,374 share awards; Fiscal 2012: 375,071 share awards) on the basis that their effect on EPS was anti-dilutive.

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Dividends

12 Months Ended

Feb. 01, 2014

Dividends

7. Dividends

	Fiscal 2014					Fiscal 2013					Fiscal 2012
	Cash dividend per share		Total dividends			Cash dividend per share		Total dividends			Cash dividend per share		Total dividends
			(in millions)					(in millions)					(in millions)
First quarter	$	0.15	$	12.1		$	0.12	$	10.3		$	—	$	—
Second quarter		0.15		12.1			0.12		9.6			—		—
Third quarter		0.15		12.0			0.12		9.8			0.10		8.7
Fourth quarter(1)		0.15		12.0	(2)		0.12		9.8	(2)		0.10		8.7
Total	$	0.60	$	48.2		$	0.48	$	39.5		$	0.20	$	17.4

(1) Signet’s dividend policy results in the dividend payment date being a quarter in arrears from the declaration date. As a result, the dividend declared in the fourth quarter of each fiscal year is paid in the subsequent fiscal year. The dividends are reflected in the consolidated statement of cash flows upon payment.

(2) As of February 1, 2014 and February 2, 2013, $12.0 million and $9.8 million, respectively, has been recorded in accrued expenses and other current liabilities in the consolidated balance sheets reflecting the cash dividends declared for the fourth quarter of Fiscal 2014 and Fiscal 2013, respectively.

In addition, on March 26, 2014, Signet’s Board of Directors declared a quarterly dividend of $0.18 per share on its Common Shares. This dividend will be payable on May 28, 2014 to shareholders of record on May 2, 2014, with an ex-dividend date of April 30, 2014.

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Supplemental Condensed Consolidated Statement of Cash Flows (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Feb. 01, 2014	Feb. 02, 2013	Jan. 28, 2012
Cash flows from operating activities
Other cash provided by operating activities	$ 235.5	$ 359.9	$ 325.2
Net cash provided by operating activities	235.5	312.7	325.2
Investing activities
Purchase of property, plant and equipment	(152.7)	(134.2)	(97.8)
Net cash used in investing activities	(160.4)	(190.9)	(97.8)
Financing activities
Dividends paid	(46.0)	(38.4)	(8.7)
Proceeds from issuance of common shares	9.3	21.6	10.6
Excess tax benefit from exercise of share awards	6.5	7.4	3.9
Repurchase of common shares	(104.7)	(287.2)	(12.7)
Credit facility fees paid			(2.1)
Proceeds from short-term borrowings	19.3		(31.0)
Net cash used in financing activities	(124.8)	(308.1)	(40.0)
Net settlement of equity based awards	(9.2)	(11.5)
Cash and cash equivalents at beginning of period	301.0	486.8	302.1
(Decrease) increase in cash and cash equivalents	(49.7)	(186.3)	187.4
Effect of exchange rate changes on cash and cash equivalents	(3.7)	0.5	(2.7)
Cash and cash equivalents at end of period	247.6	301.0	486.8
Ultra Acquisition
Investing activities
Acquisition of business, net of cash received	1.4	(56.7)
Botswana Diamond Polishing Factory Acquisition
Investing activities
Acquisition of business, net of cash received	(9.1)
Signet Jewelers Limited
Cash flows from operating activities
Other cash provided by operating activities	137.3	305.7	45.7
Net cash provided by operating activities	137.3	305.7	45.7
Investing activities
Investment in subsidiaries	(0.3)
Net cash used in investing activities	(0.3)
Financing activities
Dividends paid	(46.0)	(38.4)	(8.7)
Proceeds from issuance of common shares	9.3	21.6	10.6
Repurchase of common shares	(104.7)	(287.2)	(12.7)
Intercompany activity, net	1.6	17.1	(38.6)
Net cash used in financing activities	(149.0)	(298.4)	(49.4)
Net settlement of equity based awards	(9.2)	(11.5)
Cash and cash equivalents at beginning of period	13.4	6.1	9.8
(Decrease) increase in cash and cash equivalents	(12.0)	7.3	(3.7)
Cash and cash equivalents at end of period	1.4	13.4	6.1
Guarantor Subsidiaries
Cash flows from operating activities
Other cash provided by operating activities	421.3	512.5	665.2
Net cash provided by operating activities	421.3	512.5	665.2
Investing activities
Purchase of property, plant and equipment	(152.6)	(134.0)	(97.8)
Investment in subsidiaries	(11.0)		(4.2)
Net cash used in investing activities	(162.2)	(190.7)	(102.0)
Financing activities
Intercompany dividends paid	(104.4)	(520.1)	(253.3)
Excess tax benefit from exercise of share awards	6.5	7.4	3.9
Credit facility fees paid			(2.1)
Proceeds from short-term borrowings	19.3		(31.0)
Intercompany activity, net	(214.6)	(9.9)	(80.6)
Net cash used in financing activities	(293.2)	(522.6)	(363.1)
Cash and cash equivalents at beginning of period	271.3	471.6	275.0
(Decrease) increase in cash and cash equivalents	(34.1)	(200.8)	200.1
Effect of exchange rate changes on cash and cash equivalents	(0.2)	0.5	(3.5)
Cash and cash equivalents at end of period	237.0	271.3	471.6
Guarantor Subsidiaries | Ultra Acquisition
Investing activities
Acquisition of business, net of cash received	1.4	(56.7)
Non-Guarantor Subsidiaries
Cash flows from operating activities
Other cash provided by operating activities	286.9	280.5	306.5
Net cash provided by operating activities	286.9	280.5	306.5
Investing activities
Purchase of property, plant and equipment	(0.1)	(0.2)
Investment in subsidiaries	(11.0)		(2.4)
Net cash used in investing activities	(20.2)	(0.2)	(2.4)
Financing activities
Intercompany dividends paid	(35.6)	(265.9)	(438.9)
Proceeds from issuance of common shares	22.3		2.4
Intercompany activity, net	(257.0)	(7.2)	123.4
Net cash used in financing activities	(270.3)	(273.1)	(313.1)
Cash and cash equivalents at beginning of period	16.3	9.1	17.3
(Decrease) increase in cash and cash equivalents	(3.6)	7.2	(9.0)
Effect of exchange rate changes on cash and cash equivalents	(3.5)		0.8
Cash and cash equivalents at end of period	9.2	16.3	9.1
Non-Guarantor Subsidiaries | Botswana Diamond Polishing Factory Acquisition
Investing activities
Acquisition of business, net of cash received	(9.1)
Eliminations
Cash flows from operating activities
Other cash provided by operating activities	(610.0)	(786.0)	(692.2)
Net cash provided by operating activities	(610.0)	(786.0)	(692.2)
Investing activities
Investment in subsidiaries	22.3		6.6
Net cash used in investing activities	22.3		6.6
Financing activities
Intercompany dividends paid	140.0	786.0	692.2
Proceeds from issuance of common shares	(22.3)		(2.4)
Intercompany activity, net	470.0		(4.2)
Net cash used in financing activities	$ 587.7	$ 786.0	$ 685.6

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Cash and cash equivalents

12 Months Ended

Feb. 01, 2014

Cash and cash equivalents

9. Cash and cash equivalents

	February 1, 2014		February 2, 2013
(in millions)
Cash and cash equivalents held in money markets and other accounts	$	225.3	$	276.6
Cash equivalents from third-party credit card issuers		21.1		23.2
Cash on hand		1.2		1.2
Total cash and cash equivalents	$	247.6	$	301.0

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Other Operating Income (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Feb. 01, 2014	Feb. 02, 2013	Jan. 28, 2012
Components of Other Operating Income [Line Items]
Interest income from in-house customer finance programs	$ 186.4	$ 159.7	$ 125.4
Other	0.3	1.7	1.1
Other operating income, net	$ 186.7	$ 161.4	$ 126.5

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Fair Value Measurements Assets and Liabilities (Detail) (Deferred compensation plan - US, USD $) In Millions, unless otherwise specified	Feb. 01, 2014	Feb. 02, 2013
Defined Benefit Plan Disclosure [Line Items]
Assets	$ 24.5	$ 17.5
Corporate-owned life insurance plans
Defined Benefit Plan Disclosure [Line Items]
Assets	8.2	8.9
Money market funds
Defined Benefit Plan Disclosure [Line Items]
Assets	16.3	8.6
Fair Value, Inputs, Level 1
Defined Benefit Plan Disclosure [Line Items]
Assets	16.3	8.6
Fair Value, Inputs, Level 1 | Money market funds
Defined Benefit Plan Disclosure [Line Items]
Assets	16.3	8.6
Level 2
Defined Benefit Plan Disclosure [Line Items]
Assets	8.2	8.9
Level 2 | Corporate-owned life insurance plans
Defined Benefit Plan Disclosure [Line Items]
Assets	$ 8.2	$ 8.9

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Inventory Reserves (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Feb. 01, 2014		Feb. 02, 2013		Jan. 28, 2012
Inventories
Inventory Reserves, Balance at beginning of period	$ 23.4		$ 29.3		$ 27.8
Charged to profit	33.3		23.6		18.4
Utilized	(40.4)	[1]	(29.5)	[1]	(16.9)	[1]
Inventory Reserves, Balance at end of period	$ 16.3		$ 23.4		$ 29.3

[1] Including the impact of foreign exchange translation between opening and closing balance sheet dates.

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Tax Expense By Jurisdiction (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Feb. 01, 2014	Feb. 02, 2013	Jan. 28, 2012
Income before income taxes:
Income before income taxes, US	$ 493.7	$ 494.3	$ 423.2
Income before income taxes, Foreign	72.8	62.6	78.9
(Loss) income before income taxes	566.5	556.9	502.1
Current taxation:
Current taxation, US	211.8	186.6	136.9
Current taxation, Foreign	7.1	6.1	11.5
Deferred taxation:
Deferred taxation, US	(22.8)	3.1	26.1
Deferred taxation, Foreign	2.4	1.2	3.2
Total income taxes	$ 198.5	$ 197.0	$ 177.7

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Loans, Overdrafts and Long-Term Debt - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended			1 Months Ended	12 Months Ended										12 Months Ended
	Feb. 01, 2014	Feb. 02, 2013	Jan. 28, 2012	May 24, 2011 Revolving Credit Facility	Feb. 01, 2014 Revolving Credit Facility	Feb. 02, 2013 Revolving Credit Facility	Feb. 01, 2014 Revolving Credit Facility Minimum	Feb. 01, 2014 Revolving Credit Facility Maximum	Jan. 28, 2012 Revolving Credit Facility US Private Placement	Feb. 01, 2014 Letter of Credit	Feb. 01, 2014 Financial Standby Letter of Credit	Feb. 02, 2013 Financial Standby Letter of Credit	Feb. 01, 2014 New Revolving Credit Facility	Feb. 02, 2013 New Revolving Credit Facility	Jan. 28, 2012 2008 Facility
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity	$ 400			$ 400						$ 100
Debt instrument, maturity period				5 years	5 years					5 years
Credit facility, increase										200
Debt instrument, maturity date					May 2016
Commitment fee rates							0.20%	0.35%
Debt instruments, face value										10
Leverage ratio	250.00%
Fixed charge coverage ratio	140.00%
Borrowings from the facility	0	0									10.1	9.5
Bank overdraft	19.3	0
Capitalized amendment fees and other related costs					2.1	2.1
Accumulated amortization of financing cost													1.2	0.8
Capitalized balance amortized during the year															0.2
Capitalized amendment fees and other related costs charged to income statement	0.4	0.4	1.9		0.4	0.4			1.9
Capitalized balance written-off															$ 1.3

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Sales by Product (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended								12 Months Ended
	Feb. 01, 2014	Nov. 02, 2013	Aug. 03, 2013	May 04, 2013	Feb. 02, 2013	Oct. 27, 2012	Jul. 28, 2012	Apr. 28, 2012	Feb. 01, 2014	Feb. 02, 2013	Jan. 28, 2012
Revenue Product Segment [Line Items]
Total sales	$ 1,564.0	$ 771.4	$ 880.2	$ 993.6	$ 1,513.3	$ 716.2	$ 853.9	$ 900.0	$ 4,209.2	$ 3,983.4	$ 3,749.2
Diamonds And Diamond Jewelry
Revenue Product Segment [Line Items]
Total sales									2,552.1	2,410.7	2,183.3
Gold Silver Jewelry Other Products And Services
Revenue Product Segment [Line Items]
Total sales									1,236.9	1,116.5	1,133.5
Watches
Revenue Product Segment [Line Items]
Total sales									$ 420.2	$ 456.2	$ 432.4

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Accrued Expenses and Other Current Liabilities (Detail) (USD $) In Millions, unless otherwise specified	Feb. 01, 2014	Feb. 02, 2013
Accrued Expenses and Other Current Liabilities
Accrued compensation	$ 81.3	$ 85.9
Other liabilities	50.1	48.7
Other taxes	31.7	31.9
Payroll taxes	8.0	7.4
Accrued expenses	157.4	152.5
Total accrued expenses and other current liabilities	$ 328.5	$ 326.4

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Unrecognized Compensation Cost Related to Awards Granted (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Feb. 01, 2014	Feb. 02, 2013	Jan. 28, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	$ 17.3	$ 17.9	$ 21.9
Weighted average period of amortization	1 year 9 months 18 days	1 year 8 months 12 days	1 year 7 months 6 days
Omnibus Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	14.4	14.6	16.3
Share Saving Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	2.9	2.9	3.3
CEO Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost		$ 0.4	$ 2.3

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Quarterly Financial Information

12 Months Ended

Feb. 01, 2014

Quarterly Financial Information

QUARTERLY FINANCIAL INFORMATION—UNAUDITED

The sum of the quarterly earnings per share data may not equal the full year amount as the computations of the weighted average shares outstanding for each quarter and the full year are calculated independently.

The following information incorporates the change in accounting for extended service plans that is described in Item 6 and Item 8.

	Fiscal 2014 Quarters ended
	May 4, 2013		August 3, 2013		November 2, 2013		February 1, 2014
(in millions, except per share amounts)
Sales	$	993.6	$	880.2	$	771.4	$	1,564.0
Gross margin		382.8		309.7		239.2		648.8
Net income		91.8		67.4		33.6		175.2
Earnings per share – basic	$	1.14	$	0.84	$	0.42	$	2.20
– diluted	$	1.13	$	0.84	$	0.42	$	2.18

	Fiscal 2013 Quarters ended
	April 28, 2012		July 28, 2012		October 27, 2012		February 2, 2013
(in millions, except per share amounts)
Sales	$	900.0	$	853.9	$	716.2	$	1,513.3
Gross margin		353.7		311.2		235.4		637.1
Net income		82.5		70.7		34.9		171.8
Earnings per share – basic	$	0.96	$	0.86	$	0.43	$	2.13
– diluted	$	0.96	$	0.85	$	0.43	$	2.12

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Other Liabilities-Non-Current (Tables)

12 Months Ended

Feb. 01, 2014

Other Liabilities

	February 1, 2014		February 2, 2013
(in millions)
Straight-line rent	$	67.1	$	65.6
Deferred compensation		25.0		18.5
Warranty reserve		12.4		11.6
Lease loss reserve		5.8		8.1
Other liabilities		11.4		7.5
Total other liabilities	$	121.7	$	111.3

Lease Loss Reserve

	February 1, 2014			February 2, 2013
(in millions)
At beginning of period:	$	8.1		$	9.6
Adjustments, net		(1.6	)		(1.1	)
Utilization(1)		(0.7	)		(0.4	)
At end of period	$	5.8		$	8.1

(1) Including the impact of foreign exchange translation between opening and closing balance sheet dates.

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Acquisitions

12 Months Ended

Feb. 01, 2014

Acquisitions

14. Acquisitions

Botswana diamond polishing factory acquisition

On November 4, 2013, Signet acquired a diamond polishing factory in Gaborone, Botswana for $9.1 million. The acquisition expands the Company’s long-term diamond sourcing capabilities and provides resources for the Company to cut and polish stones.

The transaction was accounted for as a business combination during the fourth quarter of Fiscal 2014. The Company is in the process of finalizing the valuation of the net assets acquired, most notably the valuation of property, plant and equipment. The total consideration paid by the Company was funded through existing cash and allocated to the net assets acquired based on the preliminary fair values as follows: property, plant and equipment acquired of $5.5 million and goodwill of $3.6 million. None of the goodwill will be deductible for income tax purposes. The goodwill balance is recorded within other assets in the consolidated balance sheet. See Note 12.

Acquisition-related costs incurred prior to closing the transaction were immaterial. The results of operations related to the acquired diamond polishing factory are reported within the Other operating segment of Signet’s consolidated results and included in Signet’s consolidated financial statements commencing on the date of acquisition in the Other operating segment. Pro forma results of operations have not been presented, as the impact on the Company’s consolidated financial results was not material.

Ultra acquisition

On October 29, 2012, Signet acquired the outstanding shares of Ultra Stores, Inc. (the “Ultra Acquisition”). The Company paid $56.7 million, net of acquired cash of $1.5 million, for the Ultra Acquisition, including a $1.4 million working capital adjustment at closing. The total consideration paid was funded through existing cash.

On May 15, 2013, the post-closing procedures were finalized and a reduction to the initial purchase price was agreed to. As a result, total consideration paid for the Ultra Acquisition was reduced to $55.3 million. The refund of $1.4 million from the initial consideration paid was received during the second quarter of Fiscal 2014.

Signet incurred approximately $3.0 million of acquisition-related expenses, which were expenses as incurred during Fiscal 2013 and recorded as selling, general and administrative expenses in the consolidated income statement. The results of operations related to the Ultra Acquisition are reported as a component of the results of the US division and included in Signet’s consolidated financial statements commencing on the date of acquisition. Pro forma results of operations have not been presented, as the impact on the Company’s consolidated financial results were not material.

The Ultra Acquisition was accounted for as a business combination during the fourth quarter of Fiscal 2013. During the first quarter of Fiscal 2014, the Company finalized the valuation of net assets acquired. There were no material changes to the valuation of net assets acquired from the initial allocation reported during the fourth quarter of Fiscal 2013. Accordingly, the total consideration paid has been allocated to the net assets acquired based on the final fair values at October 29, 2012 as follows:

	Initial Allocation			Final Allocation			Change
(in millions)
Recognized amounts of assets acquired and liabilities assumed:
Inventories	$	43.3		$	43.3		$	—
Other current assets, excluding cash acquired		3.3			3.3			—
Property and equipment		12.1			12.1			—
Other assets		0.3			0.3			—
Current liabilities		(19.5	)		(19.5	)		—
Other liabilities		(7.4	)		(7.4	)		—
Fair value of net assets acquired	$	32.1		$	32.1		$	—
Goodwill(1)		24.6			23.2			(1.4	)
Total consideration	$	56.7		$	55.3		$	(1.4	)

(1) None of the goodwill will be deductible for income tax purposes. The goodwill balance is recorded within other assets in the consolidated balance sheet. See Note 12.

During Fiscal 2014, the majority of the acquired stores were converted to the Kay brand, with the remaining stores being reflected under regional brands.

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Components of Net Periodic Pension Cost and Other Amounts Recognized in OCI (Detail) (UK Plan, USD $) In Millions, unless otherwise specified	12 Months Ended
	Feb. 01, 2014	Feb. 02, 2013	Jan. 28, 2012
UK Plan
Components of net periodic pension cost:
Service cost	$ (2.4)	$ (3.6)	$ (4.8)
Interest cost	(9.3)	(9.5)	(10.7)
Expected return on UK Plan assets	13.0	11.5	13.8
Amortization of unrecognized net prior service credit	1.5	1.6	1.0
Amortization of unrecognized actuarial loss	(2.3)	(3.2)	(2.6)
Net periodic pension benefit (cost)	0.5	(3.2)	(3.3)
Other changes in assets and benefit obligations recognized in OCI	0.1	6.7	(1.7)
Total recognized in net periodic pension benefit (cost) and OCI	$ 0.6	$ 3.5	$ (5.0)

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Financial instruments and fair value

12 Months Ended

Feb. 01, 2014

Financial instruments and fair value

19. Financial instruments and fair value

Signet’s principal financial instruments are comprised of cash, cash deposits/investments and overdrafts, accounts receivable and payable, derivatives and a revolving credit facility. Signet does not enter into derivative transactions for trading purposes. Derivative transactions are used by Signet for risk management purposes to address risks inherent in Signet’s business operations and sources of finance. The main risks arising from Signet’s operations are market risk including foreign currency risk and commodity risk, liquidity risk and interest rate risk. Signet uses these financial instruments to manage and mitigate these risks under policies reviewed and approved by the Board.

Market risk

Signet generates revenues and incurs expenses in US dollars and pounds sterling. As a portion of Signet’s UK division purchases are denominated in US dollars, Signet enters into forward foreign currency exchange contracts, foreign currency option contracts and foreign currency swaps to manage this exposure to the US dollar.

Signet holds a fluctuating amount of pounds sterling cash reflecting the cash generative characteristics of the UK division. Signet’s objective is to minimize net foreign exchange exposure to the income statement on pound sterling denominated items through managing this level of cash, pound sterling denominated intercompany balances and US dollar to pound sterling swaps. In order to manage the foreign exchange exposure and minimize the level of pound sterling cash held by Signet, the pound sterling denominated subsidiaries pay dividends regularly to their immediate holding companies and excess pounds sterling are sold in exchange for US dollars.

Signet’s policy is to minimize the impact of precious metal commodity price volatility on operating results through the use of outright forward purchases of, or by entering into either purchase options or net zero-cost collar arrangements to purchase, precious metals within treasury guidelines approved by the Board. In particular, Signet undertakes some hedging of its requirement for gold through the use of options, net zero-cost collar arrangements (a combination of call and put option contracts), forward contracts and commodity purchasing, while fluctuations in the cost of diamonds are not hedged.

Liquidity risk

Signet’s objective is to ensure that it has access to, or the ability to generate sufficient cash from either internal or external sources in a timely and cost-effective manner to meet its commitments as they become due and payable. Signet manages liquidity risks as part of its overall risk management policy. Management produces forecasting and budgeting information that is reviewed and monitored by the Board. Cash generated from operations and external financing are the main source of funding supplementing Signet’s resources in meeting liquidity requirements.

The main external source of funding is a $400 million senior unsecured multi-currency five year revolving credit facility, under which there were no borrowings as of February 1, 2014 or February 2, 2013.

Interest rate risk

Signet may enter into various interest rate protection agreements in order to limit the impact of movements in interest rates on its cash or borrowings. There were no interest rate protection agreements outstanding as of February 1, 2014 or February 2, 2013.

Credit risk and concentrations of credit risk

Credit risk represents the loss that would be recognized at the reporting date if counterparties failed to perform as contracted. Signet does not anticipate non-performance by counterparties of its financial instruments, except for customer in-house financing receivables as disclosed in Note 10. Signet does not require collateral or other security to support cash investments or financial instruments with credit risk; however it is Signet’s policy to only hold cash and cash equivalent investments and to transact financial instruments with financial institutions with a certain minimum credit rating. Management does not believe Signet is exposed to any significant concentrations of credit risk that arise from cash and cash equivalent investments, derivatives or accounts receivable.

Derivatives

The following types of derivative financial instruments are utilized by Signet to mitigate certain risk exposures related to changes in commodity prices and foreign exchange rates:

Forward foreign currency exchange contracts (designated)—These contracts, which are principally in US dollars, are entered into in order to limit the impact of movements in foreign exchange rates on forecasted foreign currency purchases. The total notional amount of these foreign currency contracts outstanding as of February 1, 2014 was $42.3 million (February 2, 2013: $50.8 million). These contracts have been designated as cash flow hedges and will be settled over the next 12 months (February 2, 2013: 12 months).

Forward foreign currency exchange contracts (undesignated)—Foreign currency contracts not designated as cash flow hedges are used to hedge currency flows through Signet’s bank accounts to mitigate Signet’s exposure to foreign currency exchange risk in its cash and borrowings. The total notional amount of these foreign currency contracts outstanding as of February 1, 2014 was $22.1 million (February 2, 2013: $36.1 million).

Commodity forward purchase contracts and net zero-cost collar arrangements—These contracts are entered into in order to reduce Signet’s exposure to significant movements in the price of the underlying precious metal raw material. The total notional amount of these commodity derivative contracts outstanding as of February 1, 2014 was $63.0 million (February 2, 2013: $187.6 million). These contracts have been designated as cash flow hedges and will be settled over the next 12 months (February 2, 2013: 11 months).

The bank counterparties to the derivative contracts expose Signet to credit-related losses in the event of their nonperformance. However, to mitigate that risk, Signet only contracts with counterparties that meet certain minimum requirements under its counterparty risk assessment process. As of February 1, 2014, Signet believes that this credit risk did not materially change the fair value of the foreign currency or commodity contracts.

The following table summarizes the fair value and presentation of derivative instruments in the consolidated balance sheets:

	Derivative assets
		Fair value
	Balance sheet location	February 1, 2014		February 2, 2013
(in millions)
Derivatives designated as hedging instruments:
Foreign currency contracts	Other current assets	$	—	$	1.0
Foreign currency contracts	Other assets		—		—
Commodity contracts	Other current assets		0.8		2.8
Commodity contracts	Other assets		—		—
			0.8		3.8
Derivatives not designated as hedging instruments:
Foreign currency contracts	Other current assets		0.2		—
Total derivative assets		$	1.0	$	3.8

	Derivative liabilities
		Fair value
	Balance sheet location	February 1, 2014			February 2, 2013
(in millions)
Derivatives designated as hedging instruments:
Foreign currency contracts	Other current liabilities	$	(2.1	)	$	—
Foreign currency contracts	Other liabilities		—			—
Commodity contracts	Other current liabilities		(0.8	)		(4.6	)
Commodity contracts	Other liabilities		—			—
			(2.9	)		(4.6	)
Derivatives not designated as hedging instruments:
Foreign currency contracts	Other current liabilities		—			—
Total derivative liabilities		$	(2.9	)	$	(4.6	)

Derivatives designated as cash flow hedges

The following table summarizes the pre-tax gains (losses) recorded in accumulated OCI for derivatives designated in cash flow hedging relationships:

	February 1, 2014			February 2, 2013
(in millions)
Foreign currency contracts	$	(2.3	)	$	1.3
Commodity contracts		(18.8	)(1)		(0.5	)
Total	$	(21.1	)	$	0.8

(1) Includes losses of $18.2 million related to commodity contracts terminated prior to contract maturity in Fiscal 2014.

The following tables summarize the effect of derivative instruments designated as cash flow hedges in OCI and the consolidated income statements:

Foreign currency contracts

	Income statement caption		Fiscal 2014			Fiscal 2013
(in millions)
Gains (losses) recorded in accumulated OCI, beginning of year			$	1.3		$	1.2
Current period (losses) gains recognized in OCI				(2.7	)		0.5
(Gains) losses reclassified from accumulated OCI to net income		Cost of sales		(0.9	)		(0.4	)
(Losses) gains recorded in accumulated OCI, end of year			$	(2.3	)	$	1.3

Commodity contracts

	Income statement caption		Fiscal 2014			Fiscal 2013
(in millions)
(Losses) gains recorded in accumulated OCI, beginning of year			$	(0.5	)	$	32.4
Current period (losses) gains recognized in OCI				(30.3	)(1)		(10.9	)
Losses (gains) reclassified from accumulated OCI to net income		Cost of sales		12.0			(22.0	)
(Losses) gains recorded in accumulated OCI, end of year			$	(18.8	)	$	(0.5	)

(1) Includes losses of $27.8 million related to the change in fair value of commodity contracts the Company terminated prior to contract maturity in Fiscal 2014.

There was no material ineffectiveness related to the Company’s derivative instruments designated in cash flow hedging relationships for the years ended February 1, 2014 and February 2, 2013. Based on current valuations, the Company expects approximately $19.5 million of net pre-tax derivative losses to be reclassified out of accumulated OCI into earnings within the next 12 months.

Derivatives not designated as hedging instruments

The following table presents the effects of the Company’s derivatives instruments not designated as cash flow hedges in the consolidated income statements:

	Income statement caption		Amount of gain  (loss) recognized in income
			Fiscal 2014			Fiscal 2013
(in millions)
Derivatives not designated as hedging instruments:
Foreign currency contracts		Other operating income, net	$	(5.5	)	$	—
Total			$	(5.5	)	$	—

Fair value

The estimated fair value of Signet’s financial instruments held or issued to finance Signet’s operations is summarized below. Certain estimates and judgments were required to develop the fair value amounts. The fair value amounts shown below are not necessarily indicative of the amounts that Signet would realize upon disposition nor do they indicate Signet’s intent or ability to dispose of the financial instrument. Assets and liabilities that are carried at fair value are required to be classified and disclosed in one of the following three categories:

Level 1—quoted market prices in active markets for identical assets and liabilities

Level 2—observable market based inputs or unobservable inputs that are corroborated by market data

Level 3—unobservable inputs that are not corroborated by market data

Signet determines fair value based upon quoted prices when available or through the use of alternative approaches, such as discounting the expected cash flows using market interest rates commensurate with the credit quality and duration of the investment. The methods Signet uses to determine fair value on an instrument-specific basis are detailed below.

	February 1, 2014						February 2, 2013
	Carrying amount			Significant other observable inputs (Level 2)			Carrying amount			Significant other observable inputs (Level 2)
(in millions)
Assets:
Foreign currency contracts	$	0.2		$	0.2		$	1.0		$	1.0
Commodity contracts		0.8			0.8			2.8			2.8
Liabilities:
Foreign currency contracts		(2.1	)		(2.1	)		—			—
Commodity contracts		(0.8	)		(0.8	)		(4.6	)		(4.6	)

The fair value of derivative financial instruments has been determined based on market value equivalents at the balance sheet date, taking into account the current interest rate environment, current foreign currency forward rates or current commodity forward rates. These are held as assets and liabilities within other receivables and other payables, and all contracts have a maturity of less than twelve months. The carrying amounts of cash and cash equivalents, accounts receivable, other receivables, accounts payable and accrued liabilities approximate fair value because of the short term maturity of these amounts.

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Warranty Reserve Included within Accrued Expenses and Other Liabilities Non-Current (Detail) (Warranty Reserves, USD $) In Millions, unless otherwise specified	12 Months Ended
	Feb. 01, 2014	Feb. 02, 2013	Jan. 28, 2012
Warranty Reserves
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]
Balance at beginning of period	$ 18.5	$ 15.1	$ 13.0
Warranty expense	7.4	8.6	7.9
Utilized	(6.8)	(5.2)	(5.8)
Balance at end of period	$ 19.1	$ 18.5	$ 15.1

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Accrued expenses and other current liabilities (Tables)

12 Months Ended

Feb. 01, 2014

Accrued Expenses And Other Current Liabilities

	February 1, 2014		February 2, 2013
(in millions)
Accrued compensation	$	81.3	$	85.9
Other liabilities		50.1		48.7
Other taxes		31.7		31.9
Payroll taxes		8.0		7.4
Accrued expenses		157.4		152.5
Total accrued expenses and other current liabilities	$	328.5	$	326.4

Sales Returns Reserve

Sales returns reserve included in accrued expenses above:

	Balance at beginning of period		Net adjustment(1)			Balance at end of period
(in millions)
Fiscal 2012	$	7.7	$	(0.4	)	$	7.3
Fiscal 2013		7.3		0.3			7.6
Fiscal 2014		7.6		0.8			8.4

(1) Net adjustment relates to sales returns previously provided for and changes in estimate and the impact of foreign exchange translation between opening and closing balance sheet dates.

Warranty Reserve for Diamond and Gemstone Guarantee

Warranty reserve for diamond and gemstone guarantee were as follows:

	Balance at beginning of period		Warranty expense		Utilized			Balance at end of period
(in millions)
Fiscal 2012	$	13.0	$	7.9	$	(5.8	)	$	15.1
Fiscal 2013		15.1		8.6		(5.2	)		18.5
Fiscal 2014		18.5		7.4		(6.8	)		19.1

Disclosed as:	February 1, 2014		February 2, 2013
(in millions)
Current liabilities(1)	$	6.7	$	6.9
Non-current liabilities (see Note 17)		12.4		11.6
Total warranty reserve	$	19.1	$	18.5

(1) Included within accrued expenses above.

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Summary of Pre-Tax Gains (Losses) Recorded In Accumulated OCI for Derivatives (Detail) (Cash Flow Hedging, USD $) In Millions, unless otherwise specified	Feb. 01, 2014		Feb. 02, 2013	Jan. 28, 2012
Derivative Instruments, Gain (Loss) [Line Items]
Pre-tax gains (losses) recorded in accumulated OCI	$ (21.1)		$ 0.8
Foreign Exchange Contract
Derivative Instruments, Gain (Loss) [Line Items]
Pre-tax gains (losses) recorded in accumulated OCI	(2.3)		1.3	1.2
Commodity Contract
Derivative Instruments, Gain (Loss) [Line Items]
Pre-tax gains (losses) recorded in accumulated OCI	$ (18.8)	[1]	$ (0.5)	$ 32.4

[1] Includes losses of $18.2 million related to commodity contracts terminated prior to contract maturity in Fiscal 2014.

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Dividends (Tables)

12 Months Ended

Feb. 01, 2014

Payment Of Dividends

	Fiscal 2014					Fiscal 2013					Fiscal 2012
	Cash dividend per share		Total dividends			Cash dividend per share		Total dividends			Cash dividend per share		Total dividends
			(in millions)					(in millions)					(in millions)
First quarter	$	0.15	$	12.1		$	0.12	$	10.3		$	—	$	—
Second quarter		0.15		12.1			0.12		9.6			—		—
Third quarter		0.15		12.0			0.12		9.8			0.10		8.7
Fourth quarter(1)		0.15		12.0	(2)		0.12		9.8	(2)		0.10		8.7
Total	$	0.60	$	48.2		$	0.48	$	39.5		$	0.20	$	17.4

(1) Signet’s dividend policy results in the dividend payment date being a quarter in arrears from the declaration date. As a result, the dividend declared in the fourth quarter of each fiscal year is paid in the subsequent fiscal year. The dividends are reflected in the consolidated statement of cash flows upon payment.

(2) As of February 1, 2014 and February 2, 2013, $12.0 million and $9.8 million, respectively, has been recorded in accrued expenses and other current liabilities in the consolidated balance sheets reflecting the cash dividends declared for the fourth quarter of Fiscal 2014 and Fiscal 2013, respectively.

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Effect of Derivative Instruments Designated as Cash Flow Hedges (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Feb. 01, 2014		Feb. 02, 2013
Cash Flow Hedging
Derivative Instruments, Gain (Loss) [Line Items]
(Losses) gains recorded in accumulated OCI, end of year	$ (21.1)		$ 0.8
Cash Flow Hedging | Foreign Exchange Contract
Derivative Instruments, Gain (Loss) [Line Items]
(Losses) gains recorded in accumulated OCI, beginning of year	1.3		1.2
Current period (losses) gains recognized in OCI	(2.7)		0.5
(Losses) gains recorded in accumulated OCI, end of year	(2.3)		1.3
Cash Flow Hedging | Foreign Exchange Contract | Cost of Sales
Derivative Instruments, Gain (Loss) [Line Items]
(Gains) losses reclassified from accumulated OCI to net income Cost of sales	(0.9)		(0.4)
Cash Flow Hedging | Commodity Contract
Derivative Instruments, Gain (Loss) [Line Items]
(Losses) gains recorded in accumulated OCI, beginning of year	(0.5)		32.4
Current period (losses) gains recognized in OCI	(30.3)	[1]	(10.9)
(Losses) gains recorded in accumulated OCI, end of year	(18.8)	[2]	(0.5)
Cash Flow Hedging | Commodity Contract | Cost of Sales
Derivative Instruments, Gain (Loss) [Line Items]
(Gains) losses reclassified from accumulated OCI to net income Cost of sales	12.0		(22.0)
Not Designated as Hedging Instrument
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in income on derivatives	(5.5)
Not Designated as Hedging Instrument | Foreign Exchange Contract | Other operating income, net
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in income on derivatives	$ (5.5)

[1] (1) Includes losses of $27.8 million related to the change in fair value of commodity contracts the Company terminated prior to contract maturity in Fiscal 2014.

[2] Includes losses of $18.2 million related to commodity contracts terminated prior to contract maturity in Fiscal 2014.

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Consolidated Balance Sheets (Parenthetical) (USD $) In Millions, except Per Share data, unless otherwise specified	Feb. 01, 2014	Feb. 02, 2013
Common shares, par value	$ 0.18	$ 0.18
Common shares, authorized	500	500
Common shares, outstanding	80.2	81.4
Treasury shares, shares	7.0	5.8

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Property, Plant and Equipment, Net (Detail) (USD $) In Millions, unless otherwise specified	Feb. 01, 2014	Feb. 02, 2013
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 1,275.7	$ 1,154.5
Accumulated depreciation and amortization	(788.1)	(724.1)
Property, plant and equipment, net	487.6	430.4
Land and Building
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	37.2	32.5
Leasehold Improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	461.4	419.3
Furniture and Fixtures
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	537.3	503.4
Equipment, Including Software
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	221.1	183.8
Construction In Progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 18.7	$ 15.5

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Other Operating Income, Net

12 Months Ended

Feb. 01, 2014

Other Operating Income, Net

3. Other operating income, net

	Fiscal 2014		Fiscal 2013		Fiscal 2012
(in millions)
Interest income from in-house customer finance programs	$	186.4	$	159.7	$	125.4
Other		0.3		1.7		1.1
Other operating income, net	$	186.7	$	161.4	$	126.5

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Condensed Consolidating Financial Information (Tables)

12 Months Ended

Feb. 01, 2014

Condensed Financial Statements

Supplemental Condensed Consolidated Income Statement

For the 52 week period ended February 1, 2014

	Signet Jewelers Limited			Signet UK Finance plc		Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
(in millions)
Sales	$	—		$	—	$	4,162.9		$	46.3		$	—		$	4,209.2
Cost of sales		—			—		(2,621.2	)		(7.5	)		—			(2,628.7	)
Gross margin		—			—		1,541.7			38.8			—			1,580.5
Selling, general and administrative expenses		(2.9	)		—		(1,193.1	)		(0.7	)		—			(1,196.7	)
Other operating income, net		—			—		183.8			2.9			—			186.7
Operating (loss) income		(2.9	)		—		532.4			41.0			—			570.5
Intercompany interest (expense) income		—			—		(34.5	)		34.5			—			—
Interest expense, net		—			—		(3.9	)		(0.1	)		—			(4.0	)
(Loss) income before income taxes		(2.9	)		—		494.0			75.4			—			566.5
Income taxes		—			—		(196.8	)		(1.7	)		—			(198.5	)
Equity in income of subsidiaries		370.9			—		344.2			301.3			(1,016.4	)		—
Net income	$	368.0		$	—	$	641.4		$	375.0		$	(1,016.4	)	$	368.0

Supplemental Condensed Consolidated Income Statement

For the 53 week period ended February 2, 2013

	Signet Jewelers Limited			Signet UK Finance plc		Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
(in millions)
Sales	$	—		$	—	$	3,948.5		$	34.9		$	—		$	3,983.4
Cost of sales		—			—		(2,443.4	)		(2.6	)		—			(2,446.0	)
Gross margin		—			—		1,505.1			32.3			—			1,537.4
Selling, general and administrative expenses		(3.5	)		—		(1,135.6	)		0.8			—			(1,138.3	)
Other operating income, net		—			—		161.7			(0.3	)		—			161.4
Operating (loss) income		(3.5	)		—		531.2			32.8			—			560.5
Intercompany interest (expense) income		—			—		(41.1	)		41.1			—			—
Interest expense, net		—			—		(3.7	)		0.1			—			(3.6	)
(Loss) income before income taxes		(3.5	)		—		486.4			74.0			—			556.9
Income taxes		—			—		(195.8	)		(1.2	)		—			(197.0	)
Equity in income of subsidiaries		363.4			—		333.9			295.1			(992.4	)		—
Net income	$	359.9		$	—	$	624.5		$	367.9		$	(992.4	)	$	359.9

Supplemental Condensed Consolidated Income Statement

For the 52 week period ended January 28, 2012

	Signet Jewelers Limited			Signet UK Finance plc		Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
(in millions)
Sales	$	—		$	—	$	3,719.6		$	29.6		$	—		$	3,749.2
Cost of sales		—			—		(2,311.4	)		(0.2	)		—			(2,311.6	)
Gross margin		—			—		1,408.2			29.4			—			1,437.6
Selling, general and administrative expenses		(4.3	)		—		(1,053.2	)		0.8			—			(1,056.7	)
Other operating income, net		0.1			—		126.8			(0.4	)		—			126.5
Operating (loss) income		(4.2	)		—		481.8			29.8			—			507.4
Intercompany interest (expense) income		—			—		(43.0	)		43.0			—			—
Interest expense, net		—			—		(5.2	)		(0.1	)		—			(5.3	)
(Loss) income before income taxes		(4.2	)		—		433.6			72.7			—			502.1
Income taxes		—			—		(173.8	)		(3.9	)		—			(177.7	)
Equity in income of subsidiaries		328.6			—		308.8			269.4			(906.8	)		—
Net income	$	324.4		$	—	$	568.6		$	338.2		$	(906.8	)	$	324.4

Supplemental Condensed Consolidated Statement of Comprehensive Income

For the 52 week period ended February 1, 2014

	Signet Jewelers Limited		Signet UK Finance plc		Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
(in millions)
Net income	$	368.0	$	—	$	641.4		$	375.0		$	(1016.4	)	$	368.0
Other comprehensive income (loss):
Foreign currency translation adjustments		—		—		13.9			(2.7	)		1.2			12.4
Cash flow hedges:
Unrealized loss		—		—		(22.0	)		—			—			(22.0	)
Reclassification adjustment for losses to net income		—		—		6.7			—			—			6.7
Pension plan:
Actuarial gain		—		—		0.2			—			—			0.2
Reclassification adjustment to net income for amortization of actuarial loss		—		—		1.7			—			—			1.7
Prior service benefit		—		—		(0.7	)		—			—			(0.7	)
Reclassification adjustment to net income for amortization of prior service credits		—		—		(1.1	)		—			—			(1.1	)
Total other comprehensive (loss) income	$	—	$	—	$	(1.3	)	$	(2.7	)	$	1.2		$	(2.8	)
Total comprehensive income	$	368.0	$	—	$	640.1		$	372.3		$	(1,015.2	)	$	365.2

Supplemental Condensed Consolidated Statement of Comprehensive Income

For the 53 week period ended February 2, 2013

	Signet Jewelers Limited		Signet UK Finance plc		Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Eliminations			Consolidated
(in millions)
Net income	$	359.9	$	—	$	624.5		$	367.9	$	(992.4	)	$	359.9
Other comprehensive income (loss):
Foreign currency translation adjustments		—		—		(0.6	)		0.1		—			(0.5	)
Cash flow hedges:
Unrealized loss		—		—		(6.7	)		—		—			(6.7	)
Reclassification adjustment for gains to net income		—		—		(14.4	)		—		—			(14.4	)
Pension plan:
Actuarial gain		—		—		4.7			—		—			4.7
Reclassification adjustment to net income for amortization of actuarial loss		—		—		2.4			—		—			2.4
Prior service benefit		—		—		(0.8	)		—		—			(0.8	)
Reclassification adjustment to net income for amortization of prior service credits		—		—		(1.2	)		—		—			(1.2	)
Total other comprehensive (loss) income	$	—	$	—	$	(16.6	)	$	0.1	$	—		$	(16.5	)
Total comprehensive income	$	359.9	$	—	$	607.9		$	368.0	$	(992.4	)	$	343.4

Supplemental Condensed Consolidated Statement of Comprehensive Income

For the 52 week period ended January 28, 2012

	Signet Jewelers Limited		Signet UK Finance plc		Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Eliminations			Consolidated
(in millions)
Net income	$	324.4	$	—	$	568.6		$	338.2	$	(906.8	)	$	324.4
Other comprehensive income:
Foreign currency translation adjustments		—		—		(4.4	)		0.6		(0.1	)		(3.9	)
Cash flow hedges:
Unrealized gain		—		—		32.2			—		—			32.2
Reclassification adjustment for gains to net income		—		—		(16.0	)		—		—			(16.0	)
Pension plan:
Actuarial loss		—		—		(7.3	)		—		—			(7.3	)
Reclassification adjustment to net income for amortization of actuarial loss		—		—		1.8			—		—			1.8
Prior service costs		—		—		5.5			—		—			5.5
Reclassification adjustment to net income for amortization of prior service credits		—		—		(0.7	)		—		—			(0.7	)
Total other comprehensive income	$	—	$	—	$	11.1		$	0.6	$	(0.1	)	$	11.6
Total comprehensive income	$	324.4	$	—	$	579.7		$	338.8	$	(906.9	)	$	336.0

Supplemental Condensed Consolidated Balance Sheet

February 1, 2014

	Signet Jewelers Limited		Signet UK Finance plc		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			Consolidated
(in millions)
Assets
Current assets:
Cash and cash equivalents	$	1.4	$	—	$	237.0	$	9.2	$	—		$	247.6
Accounts receivable, net		—		—		1,361.3		12.7		—			1,374.0
Intercompany receivables, net		47.7		—		—		238.0		(285.7	)		—
Other receivables		—		—		51.1		0.4		—			51.5
Other current assets		—		—		86.5		0.5		—			87.0
Deferred tax assets		—		—		2.8		0.2		—			3.0
Income taxes		—		—		6.0		0.5		—			6.5
Inventories		—		—		1,434.5		53.5		—			1,488.0
Total current assets		49.1		—		3,179.2		315.0		(285.7	)		3,257.6
Non-current assets:
Property, plant and equipment, net		—		—		481.5		6.1		—			487.6
Investment in subsidiaries		2,526.3		—		1,452.8		1,143.2		(5,122.3	)		—
Intercompany receivables, net		—		—		—		1,098.0		(1,098.0	)		—
Other assets		—		—		110.4		3.6		—			114.0
Deferred tax assets		—		—		113.6		0.1		—			113.7
Retirement benefit asset		—		—		56.3		—		—			56.3
Total assets	$	2,575.4	$	—	$	5,393.8	$	2,566.0	$	(6,506.0	)	$	4,029.2
Liabilities and Shareholders’ equity
Current liabilities:
Loans and overdrafts	$	—	$	—	$	19.3	$	—	$	—		$	19.3
Accounts payable		—		—		160.5		2.4		—			162.9
Intercompany payables, net		—		—		285.7		—		(285.7	)		—
Accrued expenses and other current liabilities		12.3		—		313.1		3.1		—			328.5
Deferred revenue		—		—		173.0		—		—			173.0
Deferred tax liabilities		—		—		113.1		—		—			113.1
Income taxes		—		—		101.3		2.6		—			103.9
Total current liabilities		12.3		—		1,166.0		8.1		(285.7	)		900.7
Non-current liabilities:
Intercompany payables, net		—		—		1,098.0		—		(1,098.0	)		—
Other liabilities		—		—		118.5		3.2		—			121.7
Deferred revenue		—		—		443.7		—		—			443.7
Total liabilities		12.3		—		2,826.2		11.3		(1,383.7	)		1,466.1
Total shareholders’ equity		2,563.1		—		2,567.6		2,554.7		(5,122.3	)		2,563.1
Total liabilities and shareholders’ equity	$	2,575.4	$	—	$	5,393.8	$	2,566.0	$	(6,506.0	)	$	4,029.2

Supplemental Condensed Consolidated Balance Sheet

February 2, 2013

	Signet Jewelers Limited		Signet UK Finance plc		Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated
(in millions)
Assets
Current assets:
Cash and cash equivalents	$	13.4	$	—	$	271.3	$	16.3		$	—		$	301.0
Accounts receivable, net		—		—		1,198.8		6.5			—			1,205.3
Intercompany receivables, net		37.3		—		—		715.8			(753.1	)		—
Other receivables		—		—		41.8		0.3			—			42.1
Other current assets		0.2		—		85.0		0.4			—			85.6
Deferred tax assets		—		—		1.1		0.5			—			1.6
Income taxes		—		—		3.5		—			—			3.5
Inventories		—		—		1,360.9		36.1			—			1,397.0
Total current assets		50.9		—		2,962.4		775.9			(753.1	)		3,036.1
Non-current assets:
Property, plant and equipment, net		—		—		429.7		0.7			—			430.4
Investment in subsidiaries		2,288.9		—		1,335.3		1,039.3			(4,663.5	)		—
Intercompany receivables, net		—		—		—		600.0			(600.0	)		—
Other assets		—		—		99.9		—			—			99.9
Deferred tax assets		—		—		104.1		—			—			104.1
Retirement benefit asset		—		—		48.5		—			—			48.5
Total assets	$	2,339.8	$	—	$	4,979.9	$	2,415.9		$	(6,016.6	)	$	3,719.0
Liabilities and Shareholders’ equity
Current liabilities:
Loans and overdrafts	$	—	$	—	$	—	$	—		$	—		$	—
Accounts payable		—		—		160.0		(4.1	)		—			155.9
Intercompany payables, net		—		—		753.1		—			(753.1	)		—
Accrued expenses and other current liabilities		9.9		—		312.3		4.2			—			326.4
Deferred revenue		—		—		159.7		—			—			159.7
Deferred tax liabilities		—		—		129.6		—			—			129.6
Income taxes		—		—		95.9		4.4			—			100.3
Total current liabilities		9.9		—		1,610.6		4.5			(753.1	)		871.9
Non-current liabilities:
Intercompany payables, net		—		—		600.0		—			(600.0	)		—
Other liabilities		—		—		106.1		5.2			—			111.3
Deferred revenue		—		—		405.9		—			—			405.9
Total liabilities		9.9		—		2,722.6		9.7			(1,353.1	)		1,389.1
Total shareholders’ equity		2,329.9		—		2,257.3		2,406.2			(4,663.5	)		2,329.9
Total liabilities and shareholders’ equity		2,339.8	$	—	$	4,979.9	$	2,415.9		$	(6,016.6	)	$	3,719.0

Supplemental Condensed Consolidated Statement of Cash Flows

For the 52 week period ended February 1, 2014

	Signet Jewelers Limited			Signet UK Finance plc		Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
(in millions)
Cash flows from operating activities
Other cash provided by operating activities	$	137.3		$	—	$	421.3		$	286.9		$	(610.0	)	$	235.5
Net cash provided by operating activities		137.3			—		421.3			286.9			(610.0	)		235.5
Investing activities
Purchase of property, plant and equipment		—			—		(152.6	)		(0.1	)		—			(152.7	)
Investment in subsidiaries		(0.3	)		—		(11.0	)		(11.0	)		22.3			—
Acquisition of Ultra Stores, Inc., net of cash received		—			—		1.4			—			—			1.4
Acquisition of diamond polishing factory		—			—		—			(9.1	)		—			(9.1	)
Net cash used in investing activities		(0.3	)		—		(162.2	)		(20.2	)		22.3			(160.4	)
Financing activities
Dividends paid		(46.0	)		—		—			—			—			(46.0	)
Intercompany dividends paid		—			—		(104.4	)		(35.6	)		140.0			—
Proceeds from issuance of common shares		9.3			—		—			22.3			(22.3	)		9.3
Excess tax benefit from exercise of share awards		—			—		6.5			—			—			6.5
Repurchase of common shares		(104.7	)		—		—			—			—			(104.7	)
Net settlement of equity based awards		(9.2	)		—		—			—			—			(9.2	)
Proceeds from short-term borrowings		—			—		19.3			—			—			19.3
Intercompany activity, net		1.6			—		(214.6	)		(257.0	)		470.0			—
Net cash used in financing activities		(149.0	)		—		(293.2	)		(270.3	)		587.7			(124.8	)
Cash and cash equivalents at beginning of period		13.4			—		271.3			16.3			—			301.0
Decrease in cash and cash equivalents		(12.0	)		—		(34.1	)		(3.6	)		—			(49.7	)
Effect of exchange rate changes on cash and cash equivalents		—			—		(0.2	)		(3.5	)		—			(3.7	)
Cash and cash equivalents at end of period	$	1.4		$	—	$	237.0		$	9.2		$	—		$	247.6

Supplemental Condensed Consolidated Statement of Cash Flows

For the 53 week period ended February 2, 2013

	Signet Jewelers Limited			Signet UK Finance plc		Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
(in millions)
Cash flows from operating activities
Other cash provided by operating activities	$	305.7		$	—	$	512.5		$	280.5		$	(786.0	)	$	359.9
Net cash provided by operating activities		305.7			—		512.5			280.5			(786.0	)	$	312.7
Investing activities
Purchase of property, plant and equipment		—			—		(134.0	)		(0.2	)		—			(134.2	)
Acquisition of Ultra Stores, Inc., net of cash received		—			—		(56.7	)		—			—			(56.7	)
Net cash used in investing activities		—			—		(190.7	)		(0.2	)		—			(190.9	)
Financing activities
Dividends paid		(38.4	)		—		—			—			—			(38.4	)
Intercompany dividends paid		—			—		(520.1	)		(265.9	)		786.0			—
Proceeds from issuance of common shares		21.6			—		—			—			—			21.6
Excess tax benefit from exercise of share awards		—			—		7.4			—			—			7.4
Repurchase of common shares		(287.2	)		—		—			—			—			(287.2	)
Net settlement of equity based awards		(11.5	)		—		—			—			—			(11.5	)
Intercompany activity, net		17.1			—		(9.9	)		(7.2	)		—			—
Net cash used in financing activities		(298.4	)		—		(522.6	)		(273.1	)		786.0			(308.1	)
Cash and cash equivalents at beginning of period		6.1			—		471.6			9.1			—			486.8
Increase (decrease) in cash and cash equivalents		7.3			—		(200.8	)		7.2			—			(186.3	)
Effect of exchange rate changes on cash and cash equivalents		—			—		0.5			—			—			0.5
Cash and cash equivalents at end of period	$	13.4		$	—	$	271.3		$	16.3		$	—		$	301.0

Supplemental Condensed Consolidated Statement of Cash Flows

For the 52 week period ended January 28, 2012

	Signet Jewelers Limited			Signet UK Finance plc		Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
(in millions)
Cash flows from operating activities
Other cash provided by operating activities	$	45.7		$	—	$	665.2		$	306.5		$	(692.2	)	$	325.2
Net cash provided by operating activities		45.7			—		665.2			306.5			(692.2	)		325.2
Investing activities
Purchase of property, plant and equipment		—			—		(97.8	)		—			—			(97.8	)
Investment in subsidiaries		—			—		(4.2	)		(2.4	)		6.6			—
Net cash used in investing activities		—			—		(102.0	)		(2.4	)		6.6			(97.8	)
Financing activities
Dividends paid		(8.7	)		—		—			—			—			(8.7	)
Intercompany dividends paid		—			—		(253.3	)		(438.9	)		692.2			—
Proceeds from issuance of common shares		10.6			—		—			2.4			(2.4	)		10.6
Excess tax benefit from exercise of share awards		—			—		3.9			—			—			3.9
Repurchase of common shares		(12.7	)		—		—			—			—			(12.7	)
Credit facility fees paid		—			—		(2.1	)		—			—			(2.1	)
Repayment of short-term borrowings		—			—		(31.0	)		—			—			(31.0	)
Intercompany activity, net		(38.6	)		—		(80.6	)		123.4			(4.2	)		—
Net cash used in financing activities		(49.4	)		—		(363.1	)		(313.1	)		685.6			(40.0	)
Cash and cash equivalents at beginning of period		9.8			—		275.0			17.3			—			302.1
(Decrease) increase in cash and cash equivalents		(3.7	)		—		200.1			(9.0	)		—			187.4
Effect of exchange rate changes on cash and cash equivalents		—			—		(3.5	)		0.8			—			(2.7	)
Cash and cash equivalents at end of period	$	6.1		$	—	$	471.6		$	9.1		$	—		$	486.8

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Credit Quality Indicator and Age Analysis of Past Due US Customer In-House Finance Receivables (Detail) (USD $) In Millions, unless otherwise specified	Feb. 01, 2014	Feb. 02, 2013	Jan. 28, 2012
Financing Receivable, Allowance for Credit Losses [Line Items]
Gross, Value	$ 1,453.8	$ 1,280.6	$ 1,155.5
Valuation Allowance, Value	(97.8)	(87.7)	(78.1)
Gross, Percentage	100.00%	100.00%	100.00%
Valuation Allowance, Percentage	6.70%	6.80%	6.80%
Performing Financing Receivable
Financing Receivable, Allowance for Credit Losses [Line Items]
Gross, Percentage	96.30%	96.40%	96.30%
Valuation Allowance, Percentage	3.20%	3.30%	3.20%
Performing Financing Receivable | Current | Aged 0-30 Days
Financing Receivable, Allowance for Credit Losses [Line Items]
Gross, Value	1,170.4	1,030.3	932.6
Valuation Allowance, Value	(36.3)	(33.8)	(28.9)
Performing Financing Receivable | Past Due | Aged 31 - 90 Days
Financing Receivable, Allowance for Credit Losses [Line Items]
Gross, Value	229.9	203.9	180.2
Valuation Allowance, Value	(8.0)	(7.5)	(6.5)
Nonperforming Financing Receivable
Financing Receivable, Allowance for Credit Losses [Line Items]
Gross, Percentage	3.70%	3.60%	3.70%
Valuation Allowance, Percentage	100.00%	100.00%	100.00%
Nonperforming Financing Receivable | Past Due | Aged More Than 90 Days
Financing Receivable, Allowance for Credit Losses [Line Items]
Gross, Value	53.5	46.4	42.7
Valuation Allowance, Value	$ (53.5)	$ (46.4)	$ (42.7)

XML

Summary of Pre-Tax Gains (Losses) Recorded In Accumulated OCI for Derivatives (Parenthetical) (Detail) (Cash Flow Hedging, Commodity Contract, USD $) In Millions, unless otherwise specified	Feb. 01, 2014
Cash Flow Hedging | Commodity Contract
Derivative Instruments, Gain (Loss) [Line Items]
Accumulated Other Comprehensive Income Loss before Tax Related to Net Terminated Contracts	$ 18.2

XML

Deferred Tax Assets And Liabilities (Detail) (USD $) In Millions, unless otherwise specified	Feb. 01, 2014	Feb. 02, 2013
Components of Deferred Tax Assets and Liabilities [Abstract]
Allowances for doubtful debts, Assets	$ 39.7	$ 36.6
Revenue deferral, Assets	134.3	122.4
Value of foreign capital losses, Assets	15.8	16.5
Total gross deferred tax asset	271.7	249.2
Valuation allowance, Asset	(16.8)	(17.5)
Deferred tax asset	254.9	231.7
Derivative instruments, Liabilities
Total gross deferred tax liability	(251.3)	(255.6)
Deferred tax liability	(251.3)	(255.6)
Allowances for doubtful debts, Total	39.7	36.6
Revenue deferral (extended service plans), Total	134.3	122.4
Derivative instruments, Total	6.9
Value of foreign capital losses, Total	15.8	16.5
Total gross deferred tax asset/(liability), Total	20.4	(6.4)
Valuation allowance, Total	(16.8)	(17.5)
Deferred tax asset/(liability), Total	3.6	(23.9)
Current assets	3.0	1.6
Current liabilities	(113.1)	(129.6)
Non-current assets	113.7	104.1
Deferred tax asset/(liability), Total	3.6	(23.9)
US
Components of Deferred Tax Assets and Liabilities [Abstract]
Property, plant and equipment, Liabilities	(70.1)	(55.8)
Property, plant and equipment, Total	(70.1)	(55.8)
Foreign
Components of Deferred Tax Assets and Liabilities [Abstract]
Property, plant and equipment, Assets	7.0	6.7
Property, plant and equipment, Total	7.0	6.7
Included In Income Taxes
Components of Deferred Tax Assets and Liabilities [Abstract]
Straight line lease payments, Assets	27.5	26.8
Deferred compensation, Assets	9.9	7.7
Share-based compensation, Assets	10.3	10.7
US state income tax accruals, Assets	5.3	5.6
Other temporary differences, Assets	15.0	16.2
Inventory valuation, Liabilities	(169.2)	(188.6)
Retirement benefit obligations, Liabilities	(12.0)	(11.2)
Inventory valuation, Total	(169.2)	(188.6)
Straight line lease payments, Total	27.5	26.8
Deferred compensation, Total	9.9	7.7
Retirement benefit obligations, Total	(12.0)	(11.2)
Share-based compensation, Total	10.3	10.7
US state income tax accruals, Total	5.3	5.6
Other temporary differences, Total	$ 15.0	$ 16.2

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Pension plans

12 Months Ended

Feb. 01, 2014

Pension plans

20. Pension plans

The UK Plan, which ceased to admit new employees from April 2004, is a funded plan with assets held in a separate trustee administered fund, which is independently managed. February 1, 2014 and February 2, 2013 measurement dates were used in determining the UK Plan’s benefit obligation and fair value of plan assets.

The following tables provide information concerning the UK Plan as of and for the fiscal years ended February 1, 2014 and February 2, 2013:

	Fiscal 2014			Fiscal 2013
(in millions)
Change in UK Plan assets:
Fair value at beginning of year	$	261.1		$	236.0
Actual return on UK Plan assets		13.1			22.1
Employer contributions		4.9			13.7
Members’ contributions		0.7			0.5
Benefits paid		(9.3	)		(10.9	)
Foreign currency changes		12.1			(0.3	)
Fair value at end of year	$	282.6		$	261.1

	Fiscal 2014			Fiscal 2013
(in millions)
Change in benefit obligation:
Benefit obligation at beginning of year	$	212.6		$	204.5
Service cost		2.4			3.6
Past service cost		0.9			1.1
Interest cost		9.3			9.5
Members’ contributions		0.7			0.5
Actuarial loss (gain)		(0.1	)		4.3
Benefits paid		(9.3	)		(10.9	)
Foreign currency changes		9.8			—
Benefit obligation at end of year	$	226.3		$	212.6
Funded status at end of year: UK Plan assets less benefit obligation	$	56.3		$	48.5

	February 1, 2014		February 2, 2013
(in millions)
Amounts recognized in the balance sheet consist of:
Non-current assets	$	56.3	$	48.5
Non-current liabilities		—		—
Net asset recognized	$	56.3	$	48.5

Items in accumulated OCI not yet recognized as income (expense) in the income statement:

	February 1, 2014			February 2, 2013			January 28, 2012
(in millions)
Net actuarial loss	$	(42.5	)	$	(44.4	)	$	(51.5	)
Net prior service credit		15.3			17.1			19.1

The estimated actuarial loss and prior service credit for the UK Plan that will be amortized from accumulated OCI into net periodic pension cost over the next fiscal year are $2.0 million and $(1.7) million, respectively.

The accumulated benefit obligation for the UK Plan was $210.3 million and $197.5 million at February 1, 2014 and February 2, 2013, respectively.

The components of net periodic pension cost and other amounts recognized in OCI for the UK Plan are as follows:

	Fiscal 2014			Fiscal 2013			Fiscal 2012
(in millions)
Components of net periodic pension cost:
Service cost	$	(2.4	)	$	(3.6	)	$	(4.8	)
Interest cost		(9.3	)		(9.5	)		(10.7	)
Expected return on UK Plan assets		13.0			11.5			13.8
Amortization of unrecognized net prior service credit		1.5			1.6			1.0
Amortization of unrecognized actuarial loss		(2.3	)		(3.2	)		(2.6	)
Net periodic pension benefit (cost)	$	0.5		$	(3.2	)	$	(3.3	)
Other changes in assets and benefit obligations recognized in OCI		0.1			6.7			(1.7	)
Total recognized in net periodic pension benefit (cost) and OCI	$	0.6		$	3.5		$	(5.0	)

	February 1, 2014			February 2, 2013
Assumptions used to determine benefit obligations (at the end of the year):
Discount rate		4.40	%		4.50	%
Salary increases		3.00	%		3.20	%
Assumptions used to determine net periodic pension costs (at the start of the year):
Discount rate		4.50	%		4.70	%
Expected return on UK Plan assets		5.00	%		4.75	%
Salary increases		3.20	%		3.20	%

The discount rate is based upon published rates for high-quality fixed-income investments that produce expected cash flows that approximate the timing and amount of expected future benefit payments.

The expected return on the UK Plan assets assumption is based upon the historical return and future expected returns for each asset class, as well as the target asset allocation of the portfolio of UK Plan assets.

The UK Plan’s investment strategy is guided by an objective of achieving a return on the investments, which is consistent with the long-term return assumptions and funding policy, to ensure the UK Plan obligations are met. The investment policy is to carry a balance of funds to achieve these aims. These funds carry investments in UK and overseas equities, diversified growth funds, UK corporate bonds, UK Gilts and commercial property. The property investment is through a Pooled Pensions Property Fund that provides a diversified portfolio of property assets.

The target allocation for the UK Plan’s assets at February 1, 2014 was bonds 45%, diversified growth funds 35%, equities 15% and property 5%. This allocation is consistent with the long-term target allocation of investments underlying the UK Plan’s funding strategy.

The fair value of the assets in the UK Plan at February 1, 2014 and February 2, 2013 are required to be classified and disclosed in one of the following three categories:

Level 1—quoted market prices in active markets for identical assets and liabilities

Level 2—observable market based inputs or unobservable inputs that are corroborated by market data

Level 3—unobservable inputs that are not corroborated by market data

In Fiscal 2014, based upon further review of the underlying securities of the investments, management corrected the presentation for certain investments as of February 2, 2013 from Level 1 to Level 2 in the amount of $188.3 million. The value and classification of these assets was as follows:

	Fair value measurements at February 1, 2014								Fair value measurements at February 2, 2013
	Total		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant Unobservable inputs (Level 3)		Total		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
(in millions)
Asset category:
Diversified equity securities	$	41.0	$	19.1	$	21.9	$	—	$	73.2	$	34.9	$	38.3	$	—
Diversified growth funds		100.5		50.8		49.7		—		51.2		26.3		24.9		—
Fixed income – government bonds		64.2		—		64.2		—		63.4		—		63.4		—
Fixed income – corporate bonds		64.6		—		64.6		—		61.7		—		61.7		—
Property		11.6		—		—		11.6		10.4		—		—		10.4
Cash		0.7		0.7		—		—		1.2		1.2		—		—
Total	$	282.6	$	70.6	$	200.4	$	11.6	$	261.1	$	62.4	$	188.3	$	10.4

Investments in diversified equity securities, diversified growth funds, and fixed income securities are in pooled funds. Investments are valued based on unadjusted quoted prices for each fund in active markets, where possible and, therefore, classified in Level 1 of the fair value hierarchy. If unadjusted quoted prices for identical assets are unavailable, investments are valued by the administrators of the funds. The valuation is based on the value of the underlying assets owned by the fund, minus its liabilities, and then divided by the number of units outstanding. The unit price is based on underlying investments which are generally either traded in an active market or are valued based on observable inputs such as market interest rates and quoted prices for similar securities and, therefore, classified in Level 2 of the fair value hierarchy.

The investment in property is in pooled funds valued by the administrators of the fund. The valuation is based on the value of the underlying assets owned by the fund, minus its liabilities, and then divided by the number of units outstanding. The unit price is based on underlying investments which are independently valued on a monthly basis. The investment in the property fund is subject to certain restrictions on withdrawals that could delay the receipt of funds by up to 16 months.

The table below sets forth changes in the fair value of the Level 3 investment assets in Fiscal 2014 and 2013:

(in millions)
Balance at January 28, 2012	$	10.3
Actual return on assets		0.1
Balance at February 2, 2013	$	10.4
Actual return on assets		1.2
Balance at February 1, 2014	$	11.6

The UK Plan does not hold any investment in Signet shares or in property occupied by or other assets used by Signet.

Signet contributed $4.9 million to the UK Plan in Fiscal 2014 and expects to contribute a minimum of $4.2 million to the UK Plan in Fiscal 2015. The level of contributions is in accordance with an agreed upon deficit recovery plan and based on the results of the actuarial valuation as of April 5, 2012.

The following benefit payments, which reflect expected future service, as appropriate, are estimated to be paid by the UK Plan:

(in millions)
Fiscal 2015	$	9.3
Fiscal 2016		10.3
Fiscal 2017		10.7
Fiscal 2018		10.3
Fiscal 2019		11.9
Fiscal 2020 to Fiscal 2024		62.2

In June 2004, Signet introduced a defined contribution plan which replaced the UK Plan for new UK employees. The contributions to this plan in Fiscal 2014 were $1.0 million (Fiscal 2013: $0.7 million; Fiscal 2012: $0.6 million).

In the US, Signet sponsors a defined contribution 401(k) retirement savings plan for all eligible employees who meet minimum age and service requirements. The assets of this plan are held in a separate trust and Signet matches 50% of up to 6% of employee elective salary deferrals, subject to statutory limitations. Effective April 1, 2011, Signet increased the matching element from 25% to 50% of up to 6% of employee elective salary deferrals. Signet’s contributions to this plan in Fiscal 2014 were $7.1 million (Fiscal 2013: $6.5 million; Fiscal 2012: $5.4 million). The US division has also established two unfunded, non-qualified deferred compensation plans, one of which permits certain management and highly compensated employees to elect annually to defer all or a portion of their compensation and earn interest on the deferred amounts (“DCP”) and the other of which is frozen as to new participants and new deferrals. Beginning in April 2011, the DCP provided for a matching contribution based on each participant’s annual compensation deferral. The plan also permits employer contributions on a discretionary basis. In connection with these plans, Signet has invested in trust-owned life insurance policies and money market funds. The cost recognized in connection with the DCP in Fiscal 2014 was $2.4 million (Fiscal 2013: $2.1 million; Fiscal 2012: $2.2 million).

The fair value of the assets in the two unfunded, non-qualified deferred compensation plans at February 1, 2014 and February 2, 2013 are required to be classified and disclosed. Although these plans are not required to be funded by the Company, the Company may elect to fund the plans. The value and classification of these assets are as follows:

	Fair value measurements at February 1, 2014						Fair value measurements at February 2, 2013
	Total		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Total		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)
(in millions)
Assets:
Corporate-owned life insurance plans	$	8.2	$	—	$	8.2	$	8.9	$	—	$	8.9
Money market funds		16.3		16.3		—		8.6		8.6		—
Total assets	$	24.5	$	16.3	$	8.2	$	17.5	$	8.6	$	8.9

XML

Value and Classification Of Fair Value Of UK Plan Assets (Detail) (USD $) In Millions, unless otherwise specified	Feb. 01, 2014	Feb. 02, 2013	Jan. 28, 2012
Level 2
Defined Benefit Plan Disclosure [Line Items]
Total		$ 188.3
UK Plan
Defined Benefit Plan Disclosure [Line Items]
Total	282.6	261.1	236.0
UK Plan | Fair Value, Inputs, Level 1
Defined Benefit Plan Disclosure [Line Items]
Total	70.6	62.4
UK Plan | Level 2
Defined Benefit Plan Disclosure [Line Items]
Total	200.4	188.3
UK Plan | Fair Value, Inputs, Level 3
Defined Benefit Plan Disclosure [Line Items]
Total	11.6	10.4	10.3
UK Plan | Equities
Defined Benefit Plan Disclosure [Line Items]
Total	41.0	73.2
UK Plan | Equities | Fair Value, Inputs, Level 1
Defined Benefit Plan Disclosure [Line Items]
Total	19.1	34.9
UK Plan | Equities | Level 2
Defined Benefit Plan Disclosure [Line Items]
Total	21.9	38.3
UK Plan | Diversified Growth Funds
Defined Benefit Plan Disclosure [Line Items]
Total	100.5	51.2
UK Plan | Diversified Growth Funds | Fair Value, Inputs, Level 1
Defined Benefit Plan Disclosure [Line Items]
Total	50.8	26.3
UK Plan | Diversified Growth Funds | Level 2
Defined Benefit Plan Disclosure [Line Items]
Total	49.7	24.9
UK Plan | Sovereign Debt Securities
Defined Benefit Plan Disclosure [Line Items]
Total	64.2	63.4
UK Plan | Sovereign Debt Securities | Level 2
Defined Benefit Plan Disclosure [Line Items]
Total	64.2	63.4
UK Plan | Corporate bonds
Defined Benefit Plan Disclosure [Line Items]
Total	64.6	61.7
UK Plan | Corporate bonds | Level 2
Defined Benefit Plan Disclosure [Line Items]
Total	64.6	61.7
UK Plan | Property
Defined Benefit Plan Disclosure [Line Items]
Total	11.6	10.4
UK Plan | Property | Fair Value, Inputs, Level 3
Defined Benefit Plan Disclosure [Line Items]
Total	11.6	10.4
UK Plan | Cash
Defined Benefit Plan Disclosure [Line Items]
Total	0.7	1.2
UK Plan | Cash | Fair Value, Inputs, Level 1
Defined Benefit Plan Disclosure [Line Items]
Total	$ 0.7	$ 1.2

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Significant Assumptions Utilized to Estimate Weighted-Average Fair Value of Awards Granted (Detail) (USD $)	12 Months Ended
	Feb. 01, 2014		Feb. 02, 2013		Jan. 28, 2012
Omnibus Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share price	$ 67.39	[1]	$ 47.15	[1]	$ 44.33	[1]
Risk free interest rate	0.30%	[1]	0.40%	[1]	1.40%	[1]
Expected term	2 years 9 months 18 days	[1]	2 years 10 months 24 days	[1]	2 years 10 months 24 days	[1]
Expected volatility	41.70%	[1]	44.20%	[1]	45.10%	[1]
Dividend yield	1.10%	[1]	1.20%	[1]	0.70%	[1]
Fair value	$ 66.10	[1],[2]	$ 46.12	[1]	$ 43.52	[1]
Share Saving Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share price	$ 72.65	[1]	$ 49.89	[1]	$ 40.09	[1]
Exercise price	$ 59.75	[1]	$ 41.17	[1]	$ 28.32	[1]
Risk free interest rate	0.70%	[1]	0.40%	[1]	0.70%	[1]
Expected term	2 years 8 months 12 days	[1]	2 years 8 months 12 days	[1]	3 years	[1]
Expected volatility	40.20%	[1]	41.00%	[1]	43.00%	[1]
Dividend yield	1.10%	[1]	1.40%	[1]	1.00%	[1]
Fair value	$ 22.89	[1]	$ 15.40	[1]	$ 11.55	[1]

[1] Weighted average.

[2] Includes shares issued to the CEO, whose contract includes share based compensation for amounts foregone from his prior employment.

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Commitments and Contingencies - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Feb. 01, 2014 Property	Feb. 02, 2013
Commitments Disclosure [Line Items]
Number of property leases in UK	44
Number of additional properties sub-let	19
Capital Commitments related to expansion and renovation of stores	$ 42.3	$ 33.6

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Payment Of Dividends (Parenthetical) (Detail) (USD $) In Millions, unless otherwise specified	Feb. 01, 2014	Feb. 02, 2013
Dividends, Cash [Abstract]
Other current liabilities reflecting dividend	$ 12.0	$ 9.8

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Compensation and Benefits (Tables)

12 Months Ended

Feb. 01, 2014

Compensation and Benefits

Compensation and benefits were as follows:

	Fiscal 2014		Fiscal 2013		Fiscal 2012
(in millions)
Wages and salaries	$	753.3	$	713.4	$	681.5
Payroll taxes		65.8		62.6		59.3
Employee benefit plans expense		10.2		12.9		11.3
Share-based compensation expense		14.4		15.7		17.0
Total compensation and benefits	$	843.7	$	804.6	$	769.1

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Property, Plant And Equipment, Net

12 Months Ended

Feb. 01, 2014

Property, Plant And Equipment, Net

13. Property, plant and equipment, net

	February 1, 2014			February 2, 2013
(in millions)
Land and buildings	$	37.2		$	32.5
Leasehold improvements		461.4			419.3
Furniture and fixtures		537.3			503.4
Equipment, including software		221.1			183.8
Construction in progress		18.7			15.5
Total	$	1,275.7		$	1,154.5
Accumulated depreciation and amortization		(788.1	)		(724.1	)
Property, plant and equipment, net	$	487.6		$	430.4

Depreciation and amortization expense for Fiscal 2014 was $110.2 million (Fiscal 2013: $99.4 million; Fiscal 2012: $92.4 million). The expense for Fiscal 2014 includes $0.7 million (Fiscal 2013: $2.6 million; Fiscal 2012: $1.4 million) for impairment of assets.

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Loans, Overdrafts and Long-Term Debt (Detail) (USD $) In Millions, unless otherwise specified	Feb. 01, 2014	Feb. 02, 2013
Current liabilities - loans and overdrafts
Revolving credit facility
Bank overdrafts	19.3	0
Total loans and overdrafts	$ 19.3