Acquisitions (Tables)

9 Months Ended

Nov. 01, 2014

Calculation of Consideration

Calculation of consideration

(in millions except per share amounts)	Amount
Cash consideration paid to Zale Corporation shareholders ($21 per share)	$	910.2
Cash consideration paid for settlement of Zale Corporation stock options, restricted share awards and long term incentive plan awards		69.6
Cash paid to extinguish Zale Corporation outstanding debt as of May 29, 2014		478.2
Total consideration transferred	$	1,458.0

Recognized Amounts of Identifiable Assets Acquired and Liabilities Assumed

(in millions)	Initial fair values			Revised fair values			Variance
Cash and cash equivalents	$	28.8		$	28.8		$	—
Inventories		855.6			862.4			6.8
Other current assets		22.5			22.7			0.2
Property, plant and equipment		104.2			99.6			(4.6	)
Intangible assets:
Trade names		420.0			420.0			—
Favorable leases		50.2			50.2			—
Deferred tax assets		126.3			129.8			3.5
Other assets		25.4			25.4			—
Current liabilities(1)		(202.8	)		(203.4	)		(0.6	)
Deferred revenue		(93.0	)		(93.3	)		(0.3	)
Unfavorable leases		(50.5	)		(50.5	)		—
Unfavorable contracts		(65.6	)		(65.6	)		—
Deferred tax liabilities		(263.6	)		(241.0	)		22.6
Other liabilities		(24.6	)		(24.6	)		—
Fair value of net assets acquired		932.9			960.5			27.6
Goodwill		525.1			497.5			(27.6	)
Total consideration transferred	$	1,458.0		$	1,458.0		$	—

(1) Includes loans and overdrafts, accounts payable, income taxes payable, accrued expenses and other current liabilities.

Operating Results of the Acquired Business

Since the date of acquisition, the operating results for the acquired business were as follows:

(in millions)	13 weeks ended November 1, 2014			39 weeks ended November 1, 2014
Sales	$	331.4		$	578.9
Operating loss		(34.5	)		(44.3	)
Net loss		(22.6	)		(29.6	)

Consolidated Pro Forma Information

The unaudited consolidated pro forma financial information was prepared in accordance with the acquisition method of accounting under existing standards and is not necessarily indicative of the results of operations that would have occurred if the Acquisition had been completed on the date indicated, nor is it indicative of the future operating results of the Company.

	Pro forma - unaudited
	13 weeks ended				39 weeks ended
(in millions, except per share amounts)	November 1, 2014		November 2, 2013		November 1, 2014		November 2, 2013
Pro forma sales	$	1,183.8	$	1,124.1	$	4,043.8	$	3,832.8
Pro forma net income	$	15.0	$	3.8	$	213.6	$	149.5
Pro forma earnings per share – basic	$	0.19	$	0.05	$	2.67	$	1.86
Pro forma earnings per share – diluted	$	0.19	$	0.05	$	2.66	$	1.85