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