10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

x	Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
	For the fiscal year ended February 3, 2018

Commission file number 1-32349

SIGNET JEWELERS LIMITED

(Exact name of Registrant as specified in its charter)

Bermuda	Not Applicable
(State or other jurisdiction of incorporation)	(I.R.S. Employer Identification No.)

Clarendon House

2 Church Street

Hamilton HM11

Bermuda

(441) 296 5872

(Address and telephone number including area code of principal executive offices)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Name of Each Exchange on which Registered
Common Shares of $0.18 each	The New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes   x     No   ¨

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.    Yes   ¨     No   x

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes   x     No   ¨

Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate web site, if any, every interactive data file required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for shorter period that the registrant was required to submit and post such files).    Yes   x     No   ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of regulation S-K is not contained herein, and will not be contained to the best of Registrant’s knowledge in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.   x

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or emerging growth company. See the definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b of the Exchange Act..

Large accelerated filer   x                          Accelerated filer   ¨

Non-accelerated filer   ¨ (Do not check if a smaller reporting company)            Smaller reporting company   ¨

Emerging growth company ¨

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes   ¨     No   x

The aggregate market value of voting common shares held by non-affiliates of the Registrant (based upon the closing sales price quoted on the New York Stock Exchange) as of July 29, 2017 was $2,543,283,372.

Number of common shares outstanding on March 28, 2018: 59,005,252

DOCUMENTS INCORPORATED BY REFERENCE

The Registrant will incorporate by reference information required in response to Part III, Items 10-14, from its definitive proxy statement for its annual meeting of shareholders, to be held on June 15, 2018.

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SIGNET JEWELERS LIMITED

FISCAL 2018 ANNUAL REPORT ON FORM 10-K

TABLE OF CONTENTS

		PAGE
FORWARD-LOOKING STATEMENTS			3
	PART I
ITEM 1.	BUSINESS		4
ITEM 1A.	RISK FACTORS		21
ITEM 1B.	UNRESOLVED STAFF COMMENTS		29
ITEM 2.	PROPERTIES		30
ITEM 3.	LEGAL PROCEEDINGS		33
ITEM 4.	MINE SAFETY DISCLOSURE		33
	PART II
ITEM 5.	MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES		34
ITEM 6.	SELECTED CONSOLIDATED FINANCIAL DATA		36
ITEM 7.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS		40
ITEM 7A.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK		68
ITEM 8.	FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA		70
ITEM 9.	CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE		130
ITEM 9A.	CONTROLS AND PROCEDURES		130
ITEM 9B.	OTHER INFORMATION		130
	PART III
ITEM 10.	DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE		131
ITEM 11.	EXECUTIVE COMPENSATION		131
ITEM 12.	SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS		131
ITEM 13.	CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE		131
ITEM 14.	PRINCIPAL ACCOUNTING FEES AND SERVICES		131
	PART IV
ITEM 15.	EXHIBITS, FINANCIAL STATEMENT SCHEDULES		132
ITEM 16.	FORM 10-K SUMMARY		136

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REFERENCES

Unless the context otherwise requires, references to “Signet” or the “Company,” refer to Signet Jewelers Limited (and before September 11, 2008 to Signet Group plc) and its consolidated subsidiaries. References to the “Parent Company” are to Signet Jewelers Limited.

PRESENTATION OF FINANCIAL INFORMATION

All references to “dollars,” “US dollars,” “$,” “cents” and “c” are to the lawful currency of the United States of America (“US”). Signet prepares its financial statements in US dollars. All references to “British pound,” “pounds,” “British pounds,” “£,” “pence” and “p” are to the lawful currency of the United Kingdom (“UK”). All references to “Canadian dollar” or “C$” are to the lawful currency of Canada.

Percentages in tables have been rounded and accordingly may not add up to 100%. Certain financial data may have been rounded. As a result of such rounding, the totals of data presented in this document may vary slightly from the actual arithmetical totals of such data.

Throughout this Annual Report on Form 10-K, financial data has been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). However, Signet gives certain additional non-GAAP measures in order to provide increased insight into the underlying or relative performance of the business. An explanation of each non-GAAP measure used can be found in Item 6.

Fiscal year and fourth quarter

Signet’s fiscal year ends on the Saturday nearest to January 31. As used herein, “Fiscal 2018,” “Fiscal 2017,” “Fiscal 2016,” “Fiscal 2015,” “Fiscal 2014,” and “Fiscal 2013” refer to the 53 week period ending February 3, 2018, the 52 week periods ending January 28, 2017, January 30, 2016, January 31, 2015 and February 1, 2014, and the 53 week period ending February 2, 2013, respectively. Fourth quarter references the 14 weeks ended February 3, 2018 (“fourth quarter”) and the 13 weeks ended January 28, 2017 (“prior year fourth quarter”).

FORWARD-LOOKING STATEMENTS

This Annual Report on Form 10-K contains statements which are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, based upon management’s beliefs and expectations as well as on assumptions made by and data currently available to management, appear in a number of places throughout this Annual Report on Form 10-K and include statements regarding, among other things, Signet’s results of operation, financial condition, liquidity, prospects, growth, strategies and the industry in which Signet operates. The use of the words “expects,” “intends,” “anticipates,” “estimates,” “predicts,” “believes,” “should,” “potential,” “may,” “forecast,” “objective,” “plan,” or “target,” and other similar expressions are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to a number of risks and uncertainties, including but not limited to our ability to implement Signet's transformation initiative, the effect of federal tax reform and adjustments relating to such impact on the completion of our quarterly financial statements, changes in interpretation or assumptions, and/or updated regulatory guidance regarding the U.S. tax reform, the benefits and outsourcing of the credit portfolio sale including IT disruptions, future financial results and operating results, the timing and expected completion of the second phase of the credit outsourcing, the impact of weather-related incidents on Signet’s business, the benefits and integration of R2Net, general economic conditions, regulatory changes following the United Kingdom’s announcement to exit from the European Union, a decline in consumer spending, the merchandising, pricing and inventory policies followed by Signet, the reputation of Signet and its brands, the level of competition in the jewelry sector, the cost and availability of diamonds, gold and other precious metals, regulations relating to customer credit, seasonality of Signet’s business, financial market risks, deterioration in customers’ financial condition, exchange rate fluctuations, changes in Signet’s credit rating, changes in consumer attitudes regarding jewelry, management of social, ethical and environmental risks, the development and maintenance of Signet’s omni-channel retailing, security breaches and other disruptions to Signet’s information technology infrastructure and databases, inadequacy in and disruptions to internal controls and systems, changes in assumptions used in making accounting estimates relating to items such as extended service plans and pensions, risks related to Signet being a Bermuda corporation, the impact of the acquisition of Zale Corporation on relationships, including with employees, suppliers, customers and competitors, an adverse decision in legal or regulatory proceedings, and our ability to successfully integrate Zale Corporation’s operations and to realize synergies from the transaction.

For a discussion of these risks and other risks and uncertainties which could cause actual results to differ materially from those expressed in any forward looking statement, see Item 1A and elsewhere in this Annual Report on Form 10-K. Signet undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances, except as required by law.

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PART I

ITEM 1. BUSINESS

OVERVIEW

Signet Jewelers Limited (“Signet” or the “Company”) is the world’s largest retailer of diamond jewelry. Signet is incorporated in Bermuda and its address and telephone number are shown on the cover of this document. The Company, with 3,556 stores and kiosks at February 3, 2018, manages its business by store brand grouping, a description of which follows:

• The Sterling Jewelers division is one reportable segment with 1,586 stores located in all 50 US states at February 3, 2018. Its stores operate nationally in malls and off-mall locations principally as Kay (Kay Jewelers and Kay Jewelers Outlet) and Jared (Jared The Galleria Of Jewelry and Jared Vault). The division also operates a variety of mall-based regional brands and the JamesAllen.com website, which was acquired in the September 2017 acquisition of R2Net. See Note 4 of Item 8 for additional information regarding the acquisition.

• The Zale division consists of two reportable segments:

◦ Zale Jewelry, which operated 868 jewelry stores at February 3, 2018, is located primarily in shopping malls in North America. Zale Jewelry includes the US store brand Zales (Zales Jewelers and Zales Outlet), which operates in all 50 US states, and the Canadian store brand Peoples Jewellers, which operates in nine provinces. Zale Jewelry also operates regional brands in both the US and Canada.

◦ Piercing Pagoda, which operated 598 mall-based kiosks at February 3, 2018, is located in US shopping malls.

• The UK Jewelry division is one reportable segment with 504 stores located in the United Kingdom, Republic of Ireland and Channel Islands at February 3, 2018. Its stores operate in shopping malls and off-mall locations (i.e. high street) principally as H.Samuel and Ernest Jones.

Certain company activities (e.g. diamond sourcing) are managed as a separate operating segment and are aggregated with unallocated corporate administrative functions in the segment “Other” for financial reporting purposes. Signet’s diamond sourcing function includes our diamond polishing factory in Botswana. During the first quarter of Fiscal 2019, the Company realigned its organizational structure. The new structure will allow for further integration of operational and product development processes and support growth strategies. In accordance with this organizational change, beginning with quarterly reporting for the 13 weeks ended May 5, 2018, the Company will report three reportable segments as follows: North America, International, and Other. See Note 5 of Item 8 for additional information regarding the Company’s reportable segments.

MISSION & STRATEGY

Signet’s mission is to help customers “Celebrate Life and Express Love.” Our vision and strategy is to take the lead and be the world’s premier jeweler by relentlessly connecting with customers, earning their trust with every interaction everywhere. Our five strategic pillars all center on a customer first omni-channel experience. These pillars included below define our key priorities and growth focus areas.

• Grow jewelry market share

• Best in bridal

• Win in fashion and gifting

• Digital first and data driven

• People, purpose and passion

Signet continues to be the market share leader in North America in a large, growing and fragmented category, with the opportunity for additional share gains as we leverage our scale in innovation, marketing and procurement. However, before fully achieving this opportunity, Signet has recognized the need to transform its business to invest in growth initiatives while repositioning our real estate portfolio and lowering our cost structure. As a result, Signet is launching a three-year comprehensive transformation plan “Signet’s Path to Brilliance” to reposition the company to be a share gaining, omni-channel jewelry category leader. The three-year plan includes cost efficiencies, a portion of which will be reinvested in growth initiatives including e-commerce and omni-channel capabilities and product and store experience innovation. We believe this plan will enable the Company to deliver long-term sustainable, profitable sales growth and create value for shareholders.

Key components of the transformation plan include:

• Optimizing real estate footprint. Following an evaluation of its real estate footprint, utilization, and cost structure, Signet intends to reposition its portfolio to drive greater store productivity. Efforts include development and implementation of innovative store concepts to improve the in-store shopping experience, execution of opportunistic store relocations and store closures aimed at reducing the Company’s mall-based exposure and exiting regional brands. Signet anticipates, pending the outcome of this evaluation, to close over 200 stores by the end of Fiscal 2019. As approximately three quarters of stores expected to close are within the same mall as another Signet banner, the company expects a certain amount of revenue from closed stores to transfer to remaining Signet stores.

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• Reducing non-customer facing costs. In line with Signet’s goal of creating a Culture of Agility and Efficiency, the Company is implementing initiatives across its operations, including strategic sourcing, distribution and warehousing, and corporate and support functions to drive cost savings and operational efficiencies. These include initiatives to reduce costs related to logistics, information technology, third party contracts and corporate expenses.

• Enhancing Signet's e-commerce and omni-channel capabilities. Signet intends to invest in enhancing the customer experience across platforms and becoming the leading jewelry retailer across channels. New initiatives to drive increased digital traffic and improve conversion include using R2Net product image visualization across banners, greater personalization of content and product offering from enhanced behavioral data management, and enhancing digital marketing return on investment through greater visibility of customer's multi-touch journey. The company will also further expand and enhance omni-channel wish list, bridal configurator, online appointment booking and enabling ability to view local store inventory online. With these investments, Signet aims to grow digital sales as a percentage of total revenues to 15% in Fiscal 2021, compared to 8% in Fiscal 2018.

• Leading innovation and customer value. Signet has launched an innovation engine whose goal is to develop new solutions to consumer jewelry needs and become the disruptor of innovation in our category. In addition, investments in data analytics and consumer insights including a system to track customer net promoter score should allow us to better service our customers. The Company is also addressing gaps in the customer value proposition. These investments are expected to result in improved product assortment and faster time to market as well as greater marketing and promotional effectiveness. We are in the process of completing our brand positioning work and will clearly differentiate our banners with Kay standing for celebrating the treasured relationship, Zales highly fashion oriented emphasizing style and self-expression and Jared celebrating one of a kind love and uniqueness. Clear differentiation of the banners enables more effective merchandising and marketing through segmentation of customers.

• Strengthening employee engagement and building capabilities. Our team and organization will be key to accomplishing the company's transformation goals. Signet has hired and promoted several executives to fill key leadership roles, is investing in building e-commerce, analytics and innovation resources and is focusing on reigniting employee engagement in our store operations and throughout the entire organization through cultural initiative training and development opportunities.

Competition and Signet Competitive Strengths

Jewelry retailing is highly fragmented and competitive. We compete against other specialty jewelers, as well as other retailers that sell jewelry, including department stores, mass merchandisers, discount stores, apparel and accessory fashion stores, brand retailers, online retail and auction sites, shopping clubs, home shopping television channels and direct home sellers. The jewelry category competes for customers’ share-of-wallet with other consumer sectors such as electronics, clothing and furniture, as well as travel and restaurants. This competition for consumers’ discretionary spending is particularly relevant to gift giving.

Signet’s competitive strengths include: strong store banner recognition, outstanding customer experience, branded differentiated and exclusive merchandise, sector-leading advertising, diversified real estate portfolio, supply chain leadership, full spectrum of financing and lease purchase options, and financial strength and flexibility. Signet increases the attraction of its store banners to customers through the use of branded differentiated and exclusive merchandise, while offering a compelling value proposition in more basic ranges. Signet accomplishes this by utilizing its supply chain and merchandising expertise, scale and balance sheet strength. The Company intends to further develop and refine its national television advertising, digital media and customer relationship marketing, which it believes are the most effective and cost efficient forms of marketing available to grow its market share. Management follows the operating principles of excellence in execution, testing before investing, continuous improvement and disciplined investment in all aspects of the business.

Capital Strategy

The Company expects to maintain a strong balance sheet that provides the flexibility to execute its strategic priorities, invest in its business, and then return excess cash to shareholders while ensuring adequate liquidity. Over time, Signet is committed to achieving an investment grade profile. Among the key tenets of Signet’s capital strategy are the following:

• Maintain our expected long-term adjusted debt⁽¹⁾/ adjusted EBITDAR⁽¹⁾ (“adjusted leverage ratio”) of 3.0x to 3.5x. To the extent results or other conditions result in a ratio higher than target, we will develop plans to return to less than 3.5x within a reasonable time-frame. For Fiscal 2019, the Company expects to exceed the high end of its target leverage range as it begins its transformation plan but expects to be back within the target by the end of the three-year transformation plan.

• Distribute 70% of annual free cash flow⁽¹⁾ in the form of share repurchases and/or dividends assuming no other strategic uses of capital.

• Consistently increase the dividend annually assuming no other strategic uses of capital.

The Company has a remaining share repurchase authorization as of the end of Fiscal 2018 of $650.6 million.

⁽¹⁾   Adjusted debt, Adjusted EBITDAR, and free cash flow are non-GAAP measures. Signet believes they are useful measures to provide insight into how the Company intends to use capital. See Item 6 for reconciliation.

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BACKGROUND

Operating segments

The business is currently managed as five reportable segments: the Sterling Jewelers division (61.1% of sales and 99.3% of operating income), the Zale division, which is comprised of the Zale Jewelry segment (24.2% of sales and 11.5% of operating income) and the Piercing Pagoda segment (4.5% of sales and 2.3% of operating income) and the UK Jewelry division (9.9% of sales and 5.7% of operating income). All divisions are managed by an executive committee, which is chaired by Signet’s Chief Executive Officer, who reports to the Board of Directors of Signet (the “Board”). The executive committee is responsible for operating decisions within parameters established by the Board. Additionally, as a result of the acquisition of a diamond polishing factory in Gaborone, Botswana in Fiscal 2014, management established a separate reportable segment (“Other”). Other consists of all non-reportable segments, including subsidiaries involved in the purchasing and conversion of rough diamonds to polished stones and unallocated corporate administrative functions. See Note 5 of Item 8 for additional information regarding the Company’s segments as well as disclosure detailing and reconciling the components of operating income.

Trademarks and trade names

Signet is not dependent on any material patents or licenses in any of its divisions. Signet has several well-established trademarks and trade names which are significant in maintaining its reputation and competitive position in the jewelry retailing industry. Some of these registered trademarks and trade names include the following:

• Kay Jewelers^®; Kay Jewelers Outlet^®; Jared The Galleria Of Jewelry^®; Jared Vault^®; Jared Jewelry Boutique^®; JB Robinson^® Jewelers; Marks & Morgan Jewelers^®; Every kiss begins with Kay^®; He went to Jared^®; Celebrate Life. Express Love.^®; the Leo^® Diamond; Hearts Desire^®; Artistry Diamonds^®; Charmed Memories^®; Diamonds in Rhythm^®; Fourone^TM; Open Hearts by Jane Seymour^®; Radiant Reflections^®; Colors in Rhythm^®;Chosen by Jared^TM; Now and Forever^®; Ever Us^TM; and James Allen^®.

• Zales^®; Zales Jewelers^TM; Zales the Diamond Store^®; Zales Outlet^®; Gordon’s Jewelers^®; Peoples Jewellers^®; Peoples the Diamond Store^®; Peoples Outlet the Diamond Store^®; Mappins^®; Piercing Pagoda^®; Arctic Brilliance Canadian Diamonds^®; Brilliant Buy^®; Brilliant Value^®; Celebration Diamond^®; Expressionist^TM; From This Moment^®; Let Love Shine^®; The Celebration Diamond Collection^®; Unstoppable Love^®; and Endless Brilliance^®.

• H.Samuel^®; Ernest Jones^®; Ernest Jones Outlet Collection^TM; Leslie Davis^®; Commitment^®; Forever Diamonds^®; Kiss Collection^®; Princessa Collection^®; Radiance^®; Secrets of the Sea^®; Shades of Gold^®; and Viva Colour^®.

Store locations

Signet operates retail jewelry stores in a variety of real estate formats including mall-based, free-standing, strip center and outlet store locations. As of February 3, 2018, Signet operated 2,958 stores and 598 kiosks across 5.0 million square feet of retail space in the US, UK and Canada. This represented a decrease of 3.4% and a decrease of 1.7% in locations and retail space, respectively, from Fiscal 2017. Store locations by country and territory as of February 3, 2018 are disclosed in Item 2.

Customer experience

The customer experience is an essential element in the success of our business and Signet strives to continually improve the quality of the customer experience. Therefore the ability to recruit, develop and retain qualified jewelry consultants is an important element in enhancing customer satisfaction. We have comprehensive recruitment, training and incentive programs in place, including an annual flagship training conference in advance of the holiday season.

Signet continues to invest in technology to enhance the customer experience, such as a clienteling system that we have initially implemented in our Sterling Jewelers division. This technology provides a single view of the customer with the capability to holistically capture customer information for the purpose of driving incremental sales to our customers. This allows jewelry consultants to improve and personalize their interactions with customers before, during and after store visits, to inform them of the latest merchandise offerings and fashion trends. Additionally, in Fiscal 2018, Signet completed the roll out of digital gemscopes to every store location in North America. These gemscopes leverage proprietary software to provide an enhanced digital view of gem stones and include the ability to email the image to the customer and the Jared Design & Service Center when sent for repair.

Omni-Channel capabilities are critical to achieving a seamless customer experience and are described further below.

We use employee and customer satisfaction metrics to monitor and improve performance.

Omni-Channel

As a specialty jeweler, Signet’s business differs from many other retailers such that a purchase of merchandise from any of Signet’s stores is personal, intimate and typically viewed as an important experience. Due to this dynamic, customers often invest time on Signet websites and social media to experience the merchandise assortments prior to visiting brick-and-mortar stores to execute a purchase transaction. Particularly related to high value transactions, customers will supplement their online experience with an in-store visit prior to finalizing a purchase.

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Through Signet’s websites, we educate customers and provide them with a source of information on products and brands, available merchandise, as well as the ability to buy online. Our websites are integrated with each division’s stores, so that merchandise ordered online may be picked up at a store or delivered to the customer. Banner websites continue to make an important and growing contribution to the customer experience, as well as to each division’s marketing programs. For Fiscal 2019, the Company is focused on:

• Investments in technology, including e-commerce platforms, focused on improving the online journey. Customer journey enhancements include user generated content, enhanced personalization / behavioral targeting, creative execution and brand differentiation. In addition, we are focused on omni-channel wishlist, online merchandising, in-store appointment booking, bridal configuration and much more.

• Optimization of marketing through prioritizing dollars to digital spend and targeted marketing through traditional media.

• Increased use of data analytics, clienteling and other key touch points to achieve a more comprehensive view of the customer and allow us to anticipate their needs.

Signet’s supplier relationships allow it to display suppliers’ inventories on the banner websites for sale to customers without holding the items in its inventory until the products are ordered by customers, which are referred to as “virtual inventory.” Virtual inventory expands the choice of merchandise available to customers both online and in-store.

During Fiscal 2018, we completed the strategic acquisition of R2Net. The transaction enables rapid enhancement to our digital technology capabilities. Capabilities deployed, or yet to be deployed, include high-quality diamond imagery and content technology, roll-out retina display screens in select Jared stores, diamond consult technology on our Jared Design-a-Ring platform available online 24 hours/7-days-a-week to offer real-time diamond consultation to customers, which gives us the ability to provide expert guidance on a range of topics from product specifications to grading certifications. R2Net's Ring Try-on App is being implemented within our Kay customer experience, giving the ability to virtually try on and experience the rings on mobile devices.

Raw materials

The jewelry industry generally is affected by fluctuations in the price and supply of diamonds, gold and, to a much lesser extent, other precious and semi-precious metals and stones. Diamonds account for about 45%, and gold about 14%, of Signet’s cost of merchandise sold, respectively.

Signet undertakes hedging for a portion of its requirement for gold through the use of net zero-cost collar arrangements, forward contracts and commodity purchasing. It is not possible to hedge against fluctuations in the cost of diamonds. The cost of raw materials is only part of the costs involved in determining the retail selling price of jewelry, with labor costs also being a significant factor.

Diamond sourcing

Signet procures its diamonds mostly as finished jewelry and, to a smaller extent, as loose polished diamonds and rough diamonds which are in turn polished in Signet’s Botswana factory.

Finished jewelry

Signet purchases finished product where management has identified compelling value based on product design, cost and availability, among other factors. Under certain types of arrangements, this method of purchasing also provides the Company with the opportunity to reserve inventory held by vendors and to make returns or exchanges with suppliers, which reduces the risk of over- or under-purchasing. Signet’s scale, strong balance sheet and robust procurement systems enable it to purchase merchandise at advantageous prices and on favorable terms.

Loose diamonds

Signet purchases loose polished diamonds in global markets (e.g. India, Israel) from a variety of sources (e.g. polishers, traders). Signet mounts stones in settings purchased from manufacturers using third parties and in-house resources. By using these approaches, the cost of merchandise is reduced and the consistency of quality is maintained enabling Signet to provide better value to customers. Buying loose diamonds helps allow Signet’s buyers to gain a detailed understanding of the manufacturing cost structures and, in turn, leverage that knowledge with regard to negotiating better prices for the supply of finished products.

Rough diamonds

Signet continues to take steps to advance its vertical integration, which includes rough diamond sourcing and processing. Signet’s objective with this initiative is to secure additional, reliable and consistent supplies of diamonds for customers worldwide while achieving further efficiencies in the supply chain. In Fiscal 2014, Signet acquired a diamond polishing factory in Gaborone, Botswana. The Company is a DeBeers sightholder, and receives contracted allocations of rough diamonds from Rio Tinto, DeBeers and Alrosa. Signet has also established a diamond liaison office in India and a diamond trading office in New York to further support its sourcing initiative.

Rough diamonds are purchased directly from the miners and then have the stones marked, cut and polished in Signet’s own polishing facility. Any stones deemed unsuitable for Signet’s needs are sold to third parties with the objective of recovering the original cost of the stones.

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Merchandising and purchasing

Management believes that a competitive strength is our industry-leading merchandising. Merchandise selection, innovation, availability and value are all critical success factors. The range of merchandise offered and the high level of inventory availability are supported centrally by extensive and continuous research and testing. Signet’s jewelry design center in New York evaluates global design trends, innovates, and helps our merchant teams develop new jewelry collections that resonate with customers.

Best-selling products are identified and replenished rapidly through analysis of sales by stock keeping unit. This approach enables Signet to deliver a focused assortment of merchandise to maximize sales and inventory turn, and minimize the need for discounting. Signet believes it is able to offer greater value and consistency of merchandise than its competitors due to its supply chain strengths. The scale and information systems available to us and the evolution of jewelry fashion trends allow for the careful testing of new merchandise in a range of representative stores. This enables us to make informed decisions about which merchandise to select, thereby increasing our ability to satisfy customers’ requirements while reducing the likelihood of having to discount merchandise.

Merchandise mix

Details of merchandise mix (excluding repairs, warranty and other miscellaneous sales) are shown below:

	Sterling Jewelers division		Zale division		UK Jewelry division		Total Signet
Fiscal 2018
Bridal	50	%	44	%	36	%	46	%
Fashion	40	%	52	%	28	%	43	%
Watches	6	%	3	%	34	%	8	%
Other	4	%	1	%	2	%	3	%
	100	%	100	%	100	%	100	%
Fiscal 2017
Bridal	50	%	45	%	38	%	47	%
Fashion	39	%	51	%	27	%	41	%
Watches	6	%	3	%	32	%	8	%
Other	5	%	1	%	3	%	4	%
	100	%	100	%	100	%	100	%

The bridal category, which includes engagement, wedding and anniversary purchases, is predominantly diamond jewelry. Like fashion jewelry and watches, bridal is to an extent dependent on the economic environment as customers can trade up or down price points depending on their available budget. Bridal represented approximately 50% of Signet’s total merchandise sales.

Gift giving is particularly important during the Holiday Season, Valentine’s Day and Mother’s Day. In Fiscal 2018, Signet had several successful fashion jewelry collections including Disney Enchanted and Vera Wang Love^® (not all collections are sold in every store banner).

Merchandise is categorized as non-branded, third party branded, and branded differentiated and exclusive. Non-branded merchandise includes items and styles such as bracelets, gold necklaces, solitaire diamond rings, and diamond stud earrings. Third party branded merchandise includes mostly watches, but also includes ranges of charm bracelets. Branded differentiated and exclusive merchandise are items that are branded and exclusive to Signet within its marketplaces, or that are not widely available in other jewelry retailers (e.g Ever Us, Vera Wang Love, Neil Lane).

Branded differentiated and exclusive ranges

Management believes that the development of branded differentiated and exclusive merchandise raises the profile of Signet’s banners, helps to drive sales and provides its well-trained sales associates with a powerful selling proposition. National television advertisements include elements that drive brand awareness and purchase intent of these ranges. Signet’s scale and proven record of success in developing branded differentiated and exclusive merchandise attracts offers of such programs from jewelry manufacturers, designers and others ahead of competing retailers, and enables it to leverage its supply chain strengths.

Merchandise held on consignment

Merchandise held on consignment is used to enhance product selection and test new designs. This minimizes exposure to changes in fashion trends and obsolescence, and provides the flexibility to return non-performing merchandise. Virtually all of Signet’s consignment inventory is held in the US.

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Suppliers

In Fiscal 2018, the five largest suppliers collectively accounted for 20.3% of total purchases, with the largest supplier comprising 5.6%. Signet transacts business with suppliers on a worldwide basis at various stages of the supply chain with third party diamond cutting and jewelry manufacturing being predominantly carried out in Asia.

Marketing and advertising

Customers’ confidence in our retail brands, store banner name recognition and advertising of branded differentiated and exclusive ranges are important factors in determining buying decisions in the jewelry industry where the majority of merchandise is unbranded. Therefore, Signet continues to strengthen and promote its store banners and merchandise brands by focusing on delivering superior customer service and building brand name recognition. The Company’s omni-channel approach leverages marketing investments in television, digital media (desktop, mobile and social), radio, print, catalog, direct mail, point of sale signage and in-store displays.

While marketing activities are undertaken throughout the year, the level of activity is concentrated at periods when customers are expected to be most receptive to marketing messages, which is ahead of Christmas Day, Valentine’s Day and Mother’s Day. A significant amount of the advertising expenditure is spent on national television advertising, which is used to promote the store banners. Within such advertisements, Signet also promotes certain merchandise ranges, in particular its branded differentiated and exclusive merchandise and other branded products. Statistical and technology-based systems are employed to support customer relationship marketing programs that use a proprietary database to build customer loyalty and strengthen the relationship with customers through mail, email, social media and telephone communications. The programs target current customers with special savings and merchandise offers during key sales periods. Our targeted marketing efforts are aligned with our customer segmentation approach which, as discussed previously, differentiates our banners by focusing on customer attitudes and behaviors, rather than demographic information. In addition, invitations to special in-store promotional events are extended throughout the year.

Details of gross advertising, advertising before vendor contributions, by division is shown below:

	Fiscal 2018				Fiscal 2017				Fiscal 2016
	Gross advertising spending		as a % of divisional sales		Gross advertising spending		as a % of divisional sales		Gross advertising spending		as a % of divisional sales
	(in millions)				(in millions)				(in millions)
Sterling Jewelers division	$	251.4	6.6	%	$	258.6	6.6	%	$	261.2	6.5	%
Zale division	89.0		5.0	%	100.2		5.5	%	98.7		5.4	%
UK Jewelry division	20.1		3.3	%	21.8		3.4	%	24.3		3.3	%
Signet	$	360.5	5.8	%	$	380.6	5.9	%	$	384.2	5.9	%

Customer finance

In our North American markets, Signet sells products for cash and for payment through major credit cards, online payment systems and lease purchase options. In addition, the Company has partnerships with third-party providers who directly extend credit to its customers, and who manage the Company’s in-house private label credit card program for owned receivables.

Signet, through its subsidiary Sterling Jewelers Inc., completed the sale of the prime-only credit quality portion of Sterling’s in-house finance receivable portfolio to Alliance Data Systems Corporation (“Alliance data”) in October 2017. Under the Program Agreement, Comenity Bank provides credit and services to prime-only credit quality customers. Additionally, Signet and Genesis Financial Solutions (“Genesis”) entered into a servicing agreement in October 2017, under which Genesis provides credit servicing functions for Signet’s non-prime accounts receivable.

During March 2018, Signet announced an agreement to sell its non-prime in-house credit card receivables primarily related to the Company’s Kay, Jared and Sterling regional brands’ customers. This agreement, in conjunction with the previously executed prime credit transaction and the outsourcing of the servicing of the non-prime credit program to Genesis will complete Signet’s transition to an outsourced credit structure. Under the agreement with CarVal Investors, Signet will sell its non-prime receivables originated by Signet to investment funds managed by CarVal Investors, which will allow Signet to divest itself of the credit risk relating to those receivables within two business days following origination, while maintaining a full spectrum of financing and leasing options for customers. The completion of the second phase of outsourcing of Signet’s credit portfolio is expected to significantly reduce consumer credit risk from the balance sheet, reduce working capital needs and allow the Company to continue to return significant capital to shareholders. Signet intends to use the proceeds from the sale of its non-prime receivables to repurchase shares in Fiscal 2019, subject to market conditions. In addition, for a five-year term, Signet will remain the issuer of non-prime credit with investment funds managed by CarVal Investors purchasing forward receivables at a discount rate determined in accordance with the agreement. Servicing of the non-prime receivables, including operational interfaces and customer servicing, will continue to be provided by Genesis.

For a period of time following the signing of this agreement and prior to the expected initial closing date on June 29, 2018, Signet has an option to appoint a minority party to purchase up to 30% of the non-prime receivables to be sold to CarVal Investors. Any agreement with the minority party would be on substantially the same terms.

9

The transaction is expected to close in the second quarter of Signet's Fiscal 2019 subject to certain closing conditions. Signet expects to reclassify the non-prime receivables to assets held for sale in the second month of the first quarter of Fiscal 2019. Subsequent to this classification, Signet will no longer recognize bad debt expense, late charge income or interest income from the non-prime receivables. There are no customer or store facing systems integration activities required of Signet to close the transaction and the Company does not expect any changes to the current credit application process.

Real estate

Management has specific operating and financial criteria that have to be satisfied before investing in new stores or renewing leases on existing stores. Substantially all the stores operated by Signet are leased. Signet intends to reposition its portfolio to drive greater store productivity. Efforts include development and implementation of innovative store concepts to improve the in-store shopping experience, execution of opportunistic store relocations and store closures aimed at reducing the Company’s mall-based exposure and exiting regional brands. Signet anticipates, pending the outcome of this evaluation, to close over 200 stores by the end of Fiscal 2019. Fiscal 2019 closures, net of new store openings, are expected to reduce gross selling square footage by approximately 4% to 5% versus year end Fiscal 2018.

Recent investment in the store portfolio is set out below:

(in millions)	Sterling Jewelers division		Zale division		UK Jewelry division		Total Signet
Fiscal 2018
New store capital investment	$	39.3	$	7.8	$	1.4	$	48.5
Remodels and other store capital investment	31.4		32.4		10.7		74.5
Total store capital investment	$	70.7	$	40.2	$	12.1	$	123.0
Fiscal 2017
New store capital investment	$	42.9	$	22.2	$	2.5	$	67.6
Remodels and other store capital investment	47.9		35.1		15.3		98.3
Total store capital investment	$	90.8	$	57.3	$	17.8	$	165.9
Fiscal 2016
New store capital investment	$	48.3	$	12.1	$	3.3	$	63.7
Remodels and other store capital investment	50.6		25.0		16.3		$	91.9
Total store capital investment	$	98.9	$	37.1	$	19.6	$	155.6

Seasonality

Signet’s sales are seasonal, with the first quarter slightly exceeding 20%of annual sales, the second and third quarters each approximating20%and the fourth quarter accounting for almost 40%of annual sales, with December being by far the most important month of the year. The “Holiday Season” consists of results for the months of November and December. As a result, approximately 45% to 55%of Signet’s annual operating income normally occurs in the fourth quarter, comprised of nearly all of the UK Jewelry and Zale divisions’ annual operating income and about 40% to 45%of the Sterling Jewelers division’s annual operating income. However, due to the impacts of our strategic credit outsourcing and transformation initiatives in Fiscal 2019, we anticipate our operating profit will be generated entirely in the fourth quarter.

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Employees

In Fiscal 2018, the average number of full-time equivalent persons employed was 24,888. In addition, Signet usually employs a limited number of temporary employees during its fourth quarter. None of Signet’s employees in the UK and less than 1% of Signet’s employees in the US and Canada are covered by collective bargaining agreements.

	Fiscal 2018	Fiscal 2017	Fiscal 2016
Average number of employees:(1)
Sterling Jewelers	13,901	16,342	16,140
Zale(2)	7,539	9,602	9,309
UK Jewelry	3,265	3,398	3,370
Other(3)	183	224	238
Total	24,888	29,566	29,057

⁽¹⁾  Full-time equivalents (“FTEs”).

⁽²⁾  Includes 821 FTEs, 1,051 FTEs and 1,201 FTEs employed in Canada in Fiscal 2018, Fiscal 2017 and Fiscal 2016, respectively.

⁽³⁾  Includes corporate employees and employees employed at the diamond polishing plant located in Botswana.

Regulation

Signet is required to comply with numerous laws and regulations covering areas such as consumer protection, consumer privacy, data protection, consumer credit, consumer credit insurance, health and safety, waste disposal, supply chain integrity, truth in advertising and employment. Management monitors changes in these laws to endeavor to comply with applicable requirements.

Markets

Signet operates in the US, Canada and UK markets.

US

According to the US Bureau of Economic Analysis, the total jewelry and watch market was approximately $91 billion at the end of 2017, up nearly 7% from the prior year. This implies a Signet jewelry market share of approximately 7%. Since 2000, the industry average annual growth rate is 3.7%. Nearly 90% of the market is represented by jewelry, with the balance being attributable to watches. According to the latest data from the US Labor Department, there were close to 20,600 jewelry stores in the country, down approximately 0.5% from the prior year.

Canada

The jewelry market in Canada, according to Euromonitor, has grown steadily over the past five years, rising to an estimated C$8.0 billion in 2016, the latest data available to Signet. This represents a compound annual growth rate of 4.3%. Euromonitor estimates that 2016 was up 5% in dollars and approximately 3% in units.

UK

In the UK, the jewelry and watch market stands at about £4.1 billion, according to Mintel. That market saw a recovery in 2015 with growth of 1.2%. Self-purchasing among young women and gifting among men represent the largest parts of the precious jewelry market. The growth represents a slight slowdown from that achieved in 2014 due to a shift towards lighter-weight pieces and a decrease in average selling prices.

STERLING JEWELERS DIVISION

The Sterling Jewelers division operates jewelry stores in malls and off-mall locations in all 50 US states under national banners including Kay and Jared, as well as a variety of mall-based regional banners.

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Sterling Jewelers store brand reviews

Store activity by brand

	Fiscal 2018			Fiscal 2017			Fiscal 2016
Kay	84			68			42
Jared	3			8			18
Regional brands	—			—			—
Total stores opened or acquired during the year	87			76			60
Kay	(29		)	(5		)	(7		)
Jared	(4		)	(3		)	(1		)
Regional brands	(56		)	(20		)	(16		)
Total stores closed during the year	(89		)	(28		)	(24		)
Kay	1,247			1,192			1,129
Jared	274			275			270
Regional brands	65			121			141
Total stores open at the end of the year	1,586			1,588			1,540
Kay	$	1.908		$	2.124		$	2.178
Jared(1)	$	4.110		$	4.379		$	4.650
Regional brands	$	1.170		$	1.242		$	1.333
Average sales per store (millions)(2)	$	2.270		$	2.449		$	2.518
Kay	1,931			1,826			1,697
Jared	1,181			1,177			1,153
Regional brands	83			151			175
Total net selling square feet (thousands)	3,195			3,154			3,025
Increase in net store selling space	1.3		%	4.3		%	5.0		%

⁽¹⁾     Includes sales from all Jared store formats, including the smaller square footage and lower average sales per store concepts of Jared 4.0, Jared Jewelry Boutique and Jared Vault.

⁽²⁾     Based only upon stores operated for the full fiscal year and calculated on a 52-week basis.

Sales data by brand

			Change from previous year
Fiscal 2018	Sales (millions)		Same store sales		Total sales
Kay	$	2,428.1	(8.0	)%	(4.4	)%
Jared	1,192.1		(5.5	)%	(2.9	)%
R2Net(1)	88.1		29.9	%
Regional brands	112.2		(19.8	)%	(31.3	)%
Sterling Jewelers	$	3,820.5	(7.0	)%	(2.8	)%

⁽¹⁾     Includes R2Net sales for the 145 days period since the date of acquisition. Same store sales presented for R2Net to provide comparative performance measure.

Kay Jewelers (“Kay”)

Kay accounted for 39% of Signet’s sales in Fiscal 2018 (Fiscal 2017: 40%) and operated 1,247 stores in 50 states as of February 3, 2018 (January 28, 2017: 1,192 stores). Kay is the largest specialty retail jewelry store brand in the US based on sales. Kay mall stores typically occupy about 1,600 square feet and have approximately 1,300 square feet of selling space, whereas Kay off-mall stores typically occupy about 2,200 square feet and have approximately 1,800 square feet of selling space. Kay operates in malls and off-mall stores. Off-mall stores primarily are located in outlet malls and power centers. The Sterling Jewelers store footprint will continue to diversify in Fiscal 2019 as new stores will be principally Kay stores in off-mall locations.

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Details of Kay’s performance over the last three years is shown below:

	Fiscal 2018		Fiscal 2017		Fiscal 2016
Sales (millions)	$	2,428.1	$	2,539.7	$	2,530.3
Average sales per store (millions)	$	1.908	$	2.124	$	2.178
Stores at year end	1,247		1,192		1,129
Total net selling square feet (thousands)	1,931		1,826		1,697

The following table summarizes the current composition of stores as of February 3, 2018 and net openings (closures) in the past three years:

	Stores at	Net openings (closures)
	February 3, 2018	Fiscal 2018		Fiscal 2017		Fiscal 2016
Mall	731	(20	)	(4	)	6
Off-mall and outlet	516	75		67		29
Total	1,247	55		63		35

Jared The Galleria Of Jewelry (“Jared”)

With 274 stores in 41 states as of February 3, 2018 (January 28, 2017: 275 stores), Jared is a leading off-mall destination specialty retail jewelry store chain, based on sales. Jared accounted for 19% of Signet’s sales in Fiscal 2018 (Fiscal 2017: 19%). Jared is the fourth largest US specialty retail jewelry brand by sales and offers enhanced selection of merchandise. Every Jared store has an on-site design and service center where most repairs are completed within the same day. Each store also has at least one diamond salon, a children’s play area, and complimentary refreshments.

The typical Jared store has about 4,800 square feet of selling space and approximately 6,000 square feet of total space. Jared locations are normally free-standing sites with high visibility and traffic flow, positioned close to major roads within shopping developments. Jared stores usually operate in retail centers that contain strong retail co-tenants, including big box, destination stores and some smaller specialty units.

Jared also operates Jared Jewelry Boutiques within malls. These mall stores have a smaller footprint than standard Jared locations and generally less than 2,000 square feet of selling space. A similar off-mall concept known as Jared 4.0, which utilizes approximately 3,600 square feet of selling space, allows for store openings in smaller markets, expands the Jared brand and increases the return on Jared advertising investment. Finally, Jared operates an outlet-mall concept known as Jared Vault which utilizes approximately 1,600 square feet of selling space. These stores are smaller than off-mall Jareds and offer a mix of identical products as Jared, as well as different, outlet-specific products at lower prices.

Details of Jared’s performance over the last three years is shown below:

	Fiscal 2018		Fiscal 2017		Fiscal 2016
Sales (millions)	$	1,192.1	$	1,227.5	$	1,252.9
Average sales per store(millions)(1)	$	4.110	$	4.379	$	4.650
Stores at year end	274		275		270
Total net selling square feet (thousands)	1,181		1,177		1,153

⁽¹⁾     Includes sales from all Jared store formats, including the smaller square footage and lower average sales per store concepts of Jared 4.0, Jared Jewelry Boutique and Jared Vault.

The following table summarizes the current composition of stores as of February 3, 2018 and net openings (closures) in the past three years:

	Stores at	Net openings (closures)
	February 3, 2018	Fiscal 2018		Fiscal 2017		Fiscal 2016
Mall	9	(1	)	(1	)	3
Off-mall and outlet	265	—		6		14
Total	274	(1	)	5		17

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JamesAllen.com

JamesAllen.com (“James Allen”) is a fast-growing millennial online retailer that was acquired by the Company during Fiscal 2018 as part of the R2Net acquisition. Unlike the rest of our store banners, James Allen does not operate or maintain physical retail stores. James Allen accounted for 1% of Signet’s sales in Fiscal 2018.

Sterling Jewelers regional brands

The Sterling Jewelers division also operates mall stores under a variety of established regional nameplates. Regional brands in the Sterling Jewelers division accounted for 2% of Signet’s sales in Fiscal 2018 (Fiscal 2017: 3%) and as of February 3, 2018, include 65 regional brand stores in 23 states (January 28, 2017: 121 stores in 29 states). The leading brands include JB Robinson Jewelers, Marks & Morgan Jewelers and Belden Jewelers. Also included in the regional nameplates are Goodman Jewelers, LeRoy’s Jewelers, Osterman Jewelers, Rogers Jewelers, Shaw’s Jewelers and Weisfield Jewelers. The Company’s strategy is to reduce regional brand locations through conversion to national store brands or through closure upon lease expiration.

Details of the regional brands’ performance over the last three years is shown below:

	Fiscal 2018		Fiscal 2017		Fiscal 2016
Sales (millions)	$	112.2	$	163.2	$	205.5
Average sales per store (millions)	$	1.170	$	1.242	$	1.333
Stores at year end	65		121		141
Total net selling square feet (thousands)	83		151		175

Sterling Jewelers operating review

Other sales

Custom design services represent less than 5% of sales but provide higher than average profitability. Our custom jewelry initiative has a proprietary computer selling system and in-store design capabilities. Design & Service Centers, located in Jared stores, are staffed with skilled artisans who support the custom business generated by other Sterling Jewelers division stores, as well as the Jared stores in which they are located. The custom design and repair function has its own field management and training structure.

Repair services represent less than 5% of sales, approximately 30% of transactions and are an important opportunity to build customer loyalty. The Jared Design & Service Centers, open the same hours as the store, also support other Sterling Jewelers and Zale division stores’ repair business.

The Sterling Jewelers division sells extended service plans covering lifetime repair service for jewelry and jewelry replacement plans. The lifetime repair service plans cover services such as ring sizing, refinishing and polishing, rhodium plating of white gold, earring repair, chain soldering and the resetting of diamonds and gemstones that arise due to the normal usage of the merchandise. Jewelry replacement plans require the issuance of new replacement merchandise if the original merchandise is determined to be defective or damaged within a defined period in accordance with the plan agreement. Any repair work is performed in-house.

Customer finance

Several factors inherent in the US jewelry business support the circumstances through which Signet is uniquely positioned to generate profitable incremental business through its partner supported and on-balance sheet consumer payment programs. These factors include a high average transaction value and a significant population of customers seeking to finance merchandise, primarily in the bridal category. Prime credit offered by Alliance Data Systems, on-balance sheet lending for non-prime applicants serviced by Genesis Financial Solutions and a lease purchase option provided by Progressive Lease allow Signet to offer payment options that meet each customer’s individual needs.

As disclosed previously, Signet, through its subsidiary Sterling Jewelers Inc., completed the sale of the prime-only credit quality portion of Sterling’s in-house finance receivable portfolio to Alliance Data Systems in October 2017. During March 2018, Signet announced an agreement to sell its non-prime in-house credit card receivables primarily related to the Company’s Kay, Jared and Sterling regional banners’ customers. This agreement, in conjunction with the previously executed prime credit transaction and the outsourcing of the servicing of the non-prime credit program to Genesis will complete Signet’s transition to an outsourced credit structure.

14

Customer financing statistics⁽¹⁾ 

Below is a summary of key customer financing statistics related to the Sterling Jewelers customer in-house finance receivables:

	Fiscal 2018				Fiscal 2017			Fiscal 2016
Total sales (millions)	$	3,820.5			$	3,930.4		$	3,988.7
Credit sales (millions)	$	2,162.7			$	2,438.3		$	2,451.2
Credit sales as % of total Sterling Jewelers sales(2)	57.9		%		62.0		%	61.5		%
Net bad debt expense (millions)(3)	$	216.7			$	212.1		$	190.5
Opening receivables (millions)	$	1,952.0			$	1,855.9		$	1,453.8
Closing receivables (millions)(4)	$	762.9			$	1,952.0		$	1,855.9
Number of active credit accounts at year end(5)	577,846				1,401,456			1,423,619
Average outstanding account balance at year end	$	1,311			$	1,405		$	1,319
Average monthly collection rate(6)	9.7		%		11.0		%	11.5		%
Ending bad debt allowance as a % of ending accounts receivable(1)	14.9		%		7.1		%	7.0		%
Net charge-offs as a % of average gross accounts receivable(1)(7)	nm			(9)	10.7		%	10.5		%
Credit portfolio impact:
Net bad debt expense (millions)(3)	$	(216.7	)		$	(212.1	)	$	(190.5	)
Late charge income (millions)	$	35.8			$	36.0		$	33.9
Interest income from in-house customer finance programs (millions)(8)	$	249.6			$	277.6		$	252.5
	$	68.7			$	101.5		$	95.9

⁽¹⁾    See Note 12 of Item 8 for additional information.

⁽²⁾    Including any deposits taken at the time of sale.

⁽³⁾    Net bad expense is defined as the charge for the provision for bad debt less recoveries.

⁽⁴⁾    See Note 3 of Item 8 for additional information.

⁽⁵⁾    The number of active accounts is based on credit cycle end date closest to the fiscal year end date.

⁽⁶⁾  The decrease is primarily due to a decline in credit approvals and average credit transaction value in addition to a change in the ratio of credit quality due to the credit transaction. See Note 3 of Item 8 for additional information on the credit transaction.

⁽⁷⁾    Net charge-offs calculated as gross charge-offs less recoveries. See Note 12 of Item 8 for additional information.

⁽⁸⁾    See Note 11 of Item 8. Primary component of other operating income, net, on the consolidated income statement.

⁽⁹⁾  During the third quarter of Fiscal 2018, the Company completed the sale of a portion of the Sterling Jewelers customer in-house finance receivables. As a result, the Company’s receivable balance decreased significantly and thus restricts the usefulness of this metric for Fiscal 2018.

nm Not meaningful.

ZALE DIVISION

The Zale division consists of two reportable segments: Zale Jewelry and Piercing Pagoda. Zale Jewelry operates jewelry stores located primarily in shopping malls throughout the US and Canada. Piercing Pagoda operates through mall-based kiosks throughout the US. In Fiscal 2018, approximately 17% of goods purchased in the Zale division were denominated in Canadian dollars (Fiscal 2017: 14%).

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Zale store brand reviews

Store activity by brand

	Fiscal 2018			Fiscal 2017			Fiscal 2016
Zales	11			40			24
Peoples	2			2			2
Regional brands	—			—			—
Total Zale Jewelry	13			42			26
Piercing Pagoda	13			35			12
Total stores opened or acquired during the year	26			77			38
Zales	(58		)	(19		)	(10		)
Peoples	(16		)	(4		)	(1		)
Regional brands	(41		)	(26		)	(10		)
Total Zale Jewelry	(115		)	(49		)	(21		)
Piercing Pagoda	(31		)	(24		)	(12		)
Total stores closed during the year	(146		)	(73		)	(33		)
Zales	704			751			730
Peoples	129			143			145
Regional brands	35			76			102
Total Zale Jewelry	868			970			977
Piercing Pagoda	598			616			605
Total stores open at the end of the year	1,466			1,586			1,582
Zales	$	1.408		$	1.327		$	1.467
Peoples	$	1.444		$	1.267		$	1.353
Regional brands	$	1.269		$	0.982		$	0.942
Total Zale Jewelry	$	1.407		$	1.290		$	1.394
Piercing Pagoda	$	0.417		$	0.506		$	0.376
Average sales per store (millions)(1)	$	1.005		$	0.988		$	1.003
Zales	977			1,039			1,010
Peoples	171			190			193
Regional brands	38			82			112
Total Zale Jewelry(2)	1,186			1,311			1,315
Piercing Pagoda	112			115			114
Total net selling square feet (thousands)(2)	1,298			1,426			1,429
(Decrease) increase in net store selling space	(9.0		)%	(0.2		)%	0.5		%

⁽¹⁾     Based only upon stores operated for the full fiscal year and calculated on a 52-week basis.

⁽²⁾    Includes 191 thousand, 227 thousand and 240 thousand square feet of net selling space in Canada in Fiscal 2018, Fiscal 2017 and Fiscal 2016, respectively.

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Sales data by brand

			Change from previous year
Fiscal 2017	Sales (millions)		Same store sales		Total sales
Zales	$	1,244.3	(2.0	)%	(1.0	)%
Peoples	215.4		2.6	%	5.1	%
Regional brands	56.5		(14.2	)%	(35.4	)%
Total Zale Jewelry	$	1,516.2	(1.9	)%	(2.2	)%
Piercing Pagoda	278.5		3.0	%	5.9	%
Zale division(1)	$	1,794.7	(1.2	)%	(1.0	)%

⁽¹⁾     The Zale division same store sales includes merchandise and repair sales and excludes warranty and insurance revenues.

Zale Jewelry

Zale Jewelry is comprised of three core national banners, Zales Jewelers, Zales Outlet and Peoples Jewellers and two regional brands, Gordon’s Jewelers and Mappins Jewellers. Each banner specializes in jewelry and watches, with merchandise and marketing emphasis focused on diamond products.

Zales Jewelers (“Zales”)

Zales Jewelers operates primarily in shopping malls and offers a broad range of bridal, diamond solitaire and fashion jewelry. Zales Outlet operates in outlet malls and neighborhood power centers and capitalizes on Zales Jewelers’ national marketing and brand recognition. Zales Jewelers and Zales Outlet are collectively referred to as “Zales.”

Zales accounted for 20% of Signet’s sales in Fiscal 2018 (Fiscal 2017: 20%) and operated a total of 704 stores, all located in the United States as of February 3, 2018 (January 28, 2017: 751 total stores, including 7 stores in Puerto Rico). Zales is positioned as “The Diamond Store” given its emphasis on diamond jewelry, especially in bridal and fashion. Zales mall stores typically occupy about 1,700 square feet and have approximately 1,300 square feet of selling space, whereas Zales off-mall stores typically occupy about 2,400 square feet and have approximately 1,700 square feet of selling space.

Details of Zales’ performance over the last three years is shown below:

	Fiscal 2018		Fiscal 2017		Fiscal 2016
Sales (millions)	$	1,244.3	$	1,257.4	$	1,241.0
Average sales per store (millions)	$	1.408	$	1.327	$	1.467
Stores at year end	704		751		730
Total net selling square feet (thousands)	977		1,039		1,010

The following table summarizes the current composition of stores as of February 3, 2018 and net openings (closures) over the last three years :

	Stores at	Net openings (closures)
	February 3, 2018	Fiscal 2018		Fiscal 2017	Fiscal 2016
Mall	545	(43	)	12	9
Off-mall and outlet	159	(4	)	9	5
Total	704	(47	)	21	14

Peoples Jewellers

Peoples Jewellers (“Peoples”) is Canada’s largest jewelry retailer, offering jewelry at affordable prices. Peoples accounted for 3% of Signet’s sales in Fiscal 2018 (Fiscal 2017: 3%) and operated 129 stores in Canada as of February 3, 2018 (January 28, 2017: 143 stores). Peoples is positioned as “Canada’s #1 Diamond Store” emphasizing its diamond business while also offering a wide selection of gold jewelry, gemstone jewelry and watches. Peoples stores typically occupy about 1,600 square feet and have approximately 1,300 square feet of selling space.

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Details of Peoples’ performance over the last three years is shown below:

	Fiscal 2018		Fiscal 2017		Fiscal 2016
Sales (millions)	$	215.4	$	204.9	$	214.8
Average sales per store (millions)	$	1.444	$	1.267	$	1.353
Stores at year end	129		143		145
Total net selling square feet (thousands)	171		190		193

Zale Jewelry regional brands

The Zale division also operates the regional store brands Gordon’s Jewelers (“Gordon’s”), in the US, and Mappins Jewellers (“Mappins”), in Canada. Regional brands in the Zale Jewelry segment accounted for 1% of Signet’s sales in Fiscal 2018 (Fiscal 2017: 1%) and operated a total of 35 stores, including 17 stores in the US and 18 stores in Canada as of February 3, 2018 (January 28, 2017: 76 total stores). The Company expects the number of regional brands locations to continue to decline through conversion to national store brands or through closure upon lease expiration.

Details of the regional brands’ performance over the last three years is shown below:

	Fiscal 2018		Fiscal 2017		Fiscal 2016
Sales (millions)	$	56.5	$	87.4	$	112.4
Average sales per store (millions)(1)	$	1.269	$	0.982	$	0.942
Stores at year end	35		76		102
Total net selling square feet (thousands)	38		82		112

Piercing Pagoda

Piercing Pagoda operates through mall-based kiosks in the US. Piercing Pagoda accounted for 5% of Signet’s sales in Fiscal 2018 (Fiscal 2017: 4%) and operated a total of 598 stores, all located in the United States as of February 3, 2018 (January 28, 2017: 616 total stores). Piercing Pagodas are generally located in high traffic areas that are easily accessible and visible within regional shopping malls. Piercing Pagoda offers a selection of gold, silver and diamond jewelry in basic styles at moderate prices.

Details of Piercing Pagoda’s performance over the last three years is shown below:

	Fiscal 2018		Fiscal 2017		Fiscal 2016
Sales (millions)	$	278.5	$	263.1	$	243.2
Average sales per store (millions)(1)	$	0.417	$	0.506	$	0.376
Stores at year end	598		616		605
Total net selling square feet (thousands)	112		115		114

Zale operating review

Other sales

Repair services represent approximately 2% of sales and 4% of transactions and are an important opportunity to build customer loyalty. During Fiscal 2018 and Fiscal 2017, Zale utilized the Jared Design & Service Centers to support its repair business for all US locations.

The Zale division sells extended service plans on certain products covering lifetime repair service and jewelry replacement. The lifetime extended service plans cover services such as ring sizing, refinishing and polishing, rhodium plating of white gold, earring repair, chain soldering and the resetting of diamonds and gemstones that arise due to the normal usage of the merchandise or a replacement option if the merchandise cannot be repaired. Zale Jewelry also offers customers a two year fine watch warranty. Additionally, Zale Jewelry and Piercing Pagoda offer a one year jewelry replacement program, which requires the issuance of new replacement merchandise if the original merchandise is determined to be defective or damaged in accordance with the plan agreement.

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Customer finance

Our consumer credit program is an integral part of our business and is a major driver of customer loyalty. Customers are offered revolving and interest free credit plans under our private label credit card programs offered in conjunction with Comenity Bank and TD Bank Services in Canada, in conjunction with other alternative finance vehicles, including a second-look credit program offered by Genesis Financial Solutions implemented in September 2017, replacing the in-house program initiated in late Fiscal 2016. These provide customers of the Zale division with a wide variety of financing options. Participation of the Zale division in Signet’s in-house consumer credit program was immaterial in Fiscal 2018. Nearly 46% of Zale sales in the US were financed by private label customer credit in Fiscal 2018 (Fiscal 2017: 47%). Canadian private label credit card sales represented 27% of Canadian sales in Fiscal 2018 (Fiscal 2017: 32%).

UK JEWELRY DIVISION

The UK Jewelry division transacts mainly in British pounds, as sales and the majority of operating expenses are incurred in that currency and its results are then translated into US dollars for external reporting purposes. In Fiscal 2018, approximately 27% of goods purchased were made in US dollars (Fiscal 2017: 25%). The following information for the UK Jewelry division is given in British pounds as management believes that this presentation assists in understanding the performance of the UK Jewelry division. Movements in the US dollar to British pound exchange rate therefore may have an impact on the results of Signet, particularly in periods of exchange rate volatility.

UK market

Ernest Jones and H.Samuel compete with a large number of independent jewelry retailers, as well as discount jewelry retailers, online retail and auction sites, apparel and accessory fashion stores, catalog showroom operators and supermarkets.

UK Jewelry store brand reviews

Store activity by brand

	Fiscal 2018			Fiscal 2017			Fiscal 2016
H.Samuel	2			6			2
Ernest Jones	1			3			8
Total stores opened or acquired during the year	3			9			10
H.Samuel	(5		)	(3		)	(3		)
Ernest Jones	(2		)	(1		)	(2		)
Total stores closed during the year	(7		)	(4		)	(5		)
H.Samuel	301			304			301
Ernest Jones	203			204			202
Total stores open at the end of the year	504			508			503
H.Samuel	£	0.698		£	0.748		£	0.763
Ernest Jones	£	1.066		£	1.114		£	1.142
Average sales per store (millions)(1)	£	0.847		£	0.894		£	0.910
H.Samuel	327			329			326
Ernest Jones	197			197			194
Total net selling square feet (thousands)	524			526			520
Increase in net store selling space	(0.4		)%	1.0		%	1.5		%

⁽¹⁾  Based only upon stores operated for the full fiscal year and calculated on a 52-week basis.

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Sales data by brand

			Change from previous year
Fiscal 2018	Sales (millions)		Same store sales		Total sales at constant exchange rates		Total sales
H.Samuel	£	234.5	(6.5	)%	(4.3	)%	(5.2	)%
Ernest Jones	237.3		(5.6	)%	(2.9	)%	(4.2	)%
UK Jewelry	£	471.8	(6.0	)%	(3.6	)%	(4.7	)%

H.Samuel

H.Samuel accounted for 5% of Signet’s sales in Fiscal 2018 (Fiscal 2017: 5%), and is the largest specialty retail jewelry store brand in the UK by number of stores. H.Samuel has 150 years of jewelry heritage, with a target customer focused on inexpensive fashion-trend oriented, everyday jewelry. The typical store selling space is 1,100 square feet.

H.Samuel continues to focus on larger store formats in regional shopping centers. Details of H.Samuel’s performance over the last three years is shown below:

	Fiscal 2018		Fiscal 2017		Fiscal 2016
Sales (millions)	£	234.5	£	245.0	£	247.4
Average sales per store (millions)	£	0.698	£	0.748	£	0.763
Stores at year end	301		304		301
Total net selling square feet (thousands)	327		329		326

Ernest Jones

Ernest Jones (including stores selling under the Leslie Davis nameplate) accounted for 5% of Signet’s sales in Fiscal 2018 (Fiscal 2017: 5%), and is the second largest specialty retail jewelry store brand in the UK by number of stores. It serves the upper middle market, with a target customer focused on high-quality, timeless jewelry. The typical store selling space is 900 square feet. Details of Ernest Jones’ performance over the last three years is shown below:

	Fiscal 2018		Fiscal 2017		Fiscal 2016
Sales (millions)	£	237.3	£	244.4	£	237.9
Average sales per store (millions)	£	1.066	£	1.114	£	1.142
Stores at year end	203		204		202
Total net selling square feet (thousands)	197		197		194

UK Jewelry operating review

Customer finance

In Fiscal 2018, approximately 9% of the division’s sales were made through a customer finance program provided through a third party (Fiscal 2017: 8%). Signet does not provide this service itself in the UK due to low demand for customer finance.

OTHER

Other consists of all non-reportable operating segments, including activities related to the direct sourcing of rough diamonds, and is aggregated with unallocated corporate administrative functions.

IMPACT OF CLIMATE CHANGE

Signet recognizes that climate change is a major risk to society and therefore continues to take steps to reduce Signet’s climatic impact. Management believes that climate change has a limited influence on Signet’s performance and that it is of limited significance to the business.

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AVAILABLE INFORMATION

Signet files annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy statements and other information with the US Securities and Exchange Commission (“SEC”). Such information, and amendments to reports previously filed or furnished, is available free of charge from our corporate website, www.signetjewelers.com, as soon as reasonably practicable after such materials are filed with or furnished to the SEC. The public also may read and copy any of these filings at the SEC’s Public Reference Room, 100 F Street, NE, Washington, D.C. 20549. Information on the operation of the Public Reference Room may be obtained by calling the SEC at 1-800-732-0330. The SEC also maintains a website at www.sec.gov that contains the Company’s filings.

ITEM 1A. RISK FACTORS

A decline in consumer spending may unfavorably impact Signet’s future sales and earnings.

Jewelry purchases are discretionary and are dependent on consumers’ perceptions of general economic conditions, particularly as jewelry is often perceived to be a luxury purchase. Adverse changes in the economy and periods when discretionary spending by consumers may be under pressure could unfavorably impact sales and earnings. We may respond by increasing discounts or initiating marketing promotions to reduce excess inventory, which could have a material adverse effect on our margins and operating results.

The success of Signet’s operations depends to a significant extent upon a number of factors relating to discretionary consumer spending. These include economic conditions, and perceptions of such conditions by consumers, consumer confidence, level of customer traffic in shopping malls and other retail centers, employment, the level of consumers’ disposable income, business conditions, interest rates, consumer debt and asset values, availability of credit and levels of taxation for the economy as a whole and in regional and local markets where we operate.

As 10% of Signet’s sales are accounted for by its UK Jewelry division, economic conditions in the eurozone have a significant impact on the UK economy even though the UK is not a member of the eurozone. Therefore, developments in the eurozone could adversely impact trading in the UK Jewelry division, as well as adversely impact the US economy.

Any deterioration in consumers’ financial position or changes to the regulatory requirements regarding the granting of credit to customers could adversely impact the Company’s sales, earnings and the collectability of accounts receivable.

Approximately half of Signet’s sales in the US and Canada utilize its in-house or third-party customer financing programs and an additional 36% of purchases are made using third party bank cards. Any significant deterioration in general economic conditions or increase in consumer debt levels may inhibit consumers’ use of credit and decrease consumers’ ability to satisfy Signet’s requirement for access to customer finance and could in turn have an adverse effect on the Company’s sales. Furthermore, any downturn in general or local economic conditions, in particular an increase in unemployment in the markets in which the Signet operates, may adversely affect its collection of outstanding accounts receivable, its net bad debt charge and hence earnings.

Additionally, Signet’s ability to extend credit to customers and the terms on which it is achieved depends on many factors, including compliance with applicable laws and regulations in the US and Canada, any of which may change from time to time, and such changes could adversely affect sales and income. In addition, other restrictions arising from applicable law could cause limitations in credit terms currently offered or a reduction in the level of credit granted by the Company, or by third parties, and this could adversely impact sales, income or cash flow.

The US Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”) was signed into law in July 2010. Among other things, the Dodd-Frank Act created a Bureau of Consumer Financial Protection with broad rule-making and supervisory authority for a wide range of consumer financial services, including Signet’s customer financing programs. The Bureau’s authority became effective in July 2011.

Any new regulatory initiatives or investigations by the Bureau or other state authority could impose additional costs and/or restrictions on credit practices of the Sterling Jewelers and Zale divisions, which could adversely affect their ability to conduct its business.

Signet’s share price may be volatile.

Signet’s share price may fluctuate substantially as a result of variations in the actual or anticipated results and financial conditions of Signet and other companies in the retail industry. In addition, the stock market has experienced price and volume fluctuations that have affected the market price of many retail and other stocks in a manner unrelated, or disproportionate, to the operating performance of these companies.

Signet provides public guidance on its expected operating and financial results for future periods. Although Signet believes that this guidance provides investors and analysts with a better understanding of management’s expectations for the future and is useful to its stockholders and potential stockholders, such guidance is comprised of forward-looking statements subject to the risks and uncertainties described in this report and in our other public filings and public statements. Signet’s actual results may not always be in line with or exceed the provided guidance or the expectations of our investors and analysts, especially in times of economic uncertainty. In the past, when the Company has reduced its previously provided guidance, the market price of Signet’s common stock has declined. If, in the future, Signet’s operating or financial results for a particular period do not meet our guidance or the expectations of our investors and analysts or if we reduce our guidance for future periods, the market price of our common stock may decline.

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In addition, Signet may fail to meet the expectations of its stockholders or of analysts at some time in the future. If the analysts that regularly follow the Company’s stock lower their rating or lower their projections for future growth and financial performance, the Company’s stock price could decline.

Signet’s sales, operating income, cash and inventory levels fluctuate on a seasonal basis.

Signet’s business is highly seasonal, with a significant proportion of its sales and operating profit generated during its fourth quarter, which includes the Holiday Season. Management expects to continue to experience a seasonal fluctuation in its sales and earnings. Therefore, there is limited ability to compensate for shortfalls in fourth quarter sales or earnings by changes in its operations and strategies in other quarters, or to recover from any extensive disruption, for example, due to sudden adverse changes in consumer confidence, inclement weather conditions having an impact on a significant number of stores in the last few days immediately before Christmas Day or disruption to warehousing and store replenishment systems. A significant shortfall in results for the fourth quarter of any fiscal year would therefore be expected to have a material adverse effect on the annual results of operations. Disruption at lesser peaks in sales at Valentine’s Day and Mother’s Day would be expected to impact the results to a lesser extent. Additionally, in anticipation of increased sales activity in the Holiday Season, Signet incurs certain significant incremental expenses prior to and during peak selling seasons, including advertising and costs associated with hiring a substantial number of temporary employees to supplement our existing workforce.

Deterioration in the Company’s capital structure or financial performance could result in constraints on capital or financial covenant breaches. In addition, a portion of the Company’s debt is variable rate and volatility in benchmark interest rates could adversely impact the Company’s financial results.

While Signet has a strong balance sheet with adequate liquidity to meet its operating requirements, the credit ratings agencies periodically review our capital structure and the quality and stability of our earnings. A deterioration in Signet’s capital structure or the quality and stability of earnings could result in a downgrade of Signet’s credit rating. Any negative ratings actions could also constrain the capital available to the Company, could limit the Company’s access to funding for its operations, funding dividends and share repurchases, and increase the Company’s financing costs. Changes in general credit market conditions could also affect Signet’s ability to access capital at rates and on terms we determine to be attractive. If our ability to access capital becomes constrained, our interest costs will likely increase, which could have a material adverse effect on our results of operations, financial condition and cash flows. Additionally, as a result of the Company’s exposure to variable interest rate debt, volatility in benchmark interest rates could adversely impact the Company’s financial results.

Signet’s borrowing agreements include various financial covenants and operating restrictions. A material deterioration in its financial performance could result in a covenant being breached. If Signet were to breach, or believed it was going to breach, a financial covenant it would have to renegotiate its terms with current lenders or find alternative sources of financing if current lenders required cancellation of facilities or early repayment.

Global economic conditions and regulatory changes following the United Kingdom’s announced intention to exit from the European Union could adversely impact Signet’s business and results of operations located in, or closely associated with, the United Kingdom.

In June 2016, a majority of voters in the United Kingdom elected to withdraw from the European Union (often referred to as Brexit) in a national referendum. The referendum was advisory, and the terms of any withdrawal are subject to a negotiation period that could last at least two years after the government of the United Kingdom formally initiates a withdrawal process. This will be either accompanied or followed by negotiations between the European Union and the United Kingdom concerning the future relations between the parties. Nevertheless, the referendum has created significant uncertainty about the future relationship between the United Kingdom and the European Union. This includes uncertainty with respect to the laws and regulations, including regulations applicable to Signet’s business that will apply in the United Kingdom in the event of a withdrawal. The referendum has also given rise to calls for the governments of other European Union member states to consider a referendum on withdrawal from the European Union for their territory. These developments, or the perception that any of them could occur, could adversely impact global economic conditions and the stability of global financial markets, and may significantly reduce global market liquidity and restrict the ability of key market participants to operate in certain financial markets. Any of these factors could depress economic activity, which could adversely impact our business, financial condition and results of operations especially those located in, or closely associated with, the United Kingdom. Brexit could lead to long-term volatility in the currency markets and there could be long-term detrimental effects on the value of the British Pound. Brexit could also impact other currencies. Signet uses foreign currency derivative instruments to hedge certain exposures to currency exchange rate risks. The results of the Brexit referendum could increase Signet’s exposure to foreign currency rate exchange risks and reduce its ability to effectively use certain derivative instruments as a way to hedge risks.

Fluctuations in foreign exchange rates could adversely impact the Company’s results of operations and financial condition.

Signet publishes its consolidated annual financial statements in US dollars. At February 3, 2018, Signet held approximately 89% of its total assets in entities whose functional currency is the US dollar and generated approximately 86% of its sales and 94% of its operating income in US dollars for the fiscal year then ended. All the remaining assets, sales and operating income are in UK British pounds and Canadian dollars. Therefore, the Company’s results of operations and balance sheet are subject to fluctuations in the exchange rates between the US dollar and both the British pound and Canadian dollar. Accordingly, any decrease in the weighted average value of the British pound or Canadian dollar against the US dollar would decrease reported sales and operating income.

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The monthly average exchange rates are used to prepare the income statement and are calculated based on the daily exchange rates experienced by the UK Jewelry division and the Canadian subsidiaries of the Zale division in the fiscal month.

Where British pounds or Canadian dollars are held or used to fund the cash flow requirements of the business, any decrease in the weighted average value of the British pound or Canadian dollar against the US dollar would reduce the amount of cash and cash equivalents.

In addition, the prices of certain materials and products bought on the international markets by Signet are denominated in foreign currencies. As a result, Signet and its subsidiaries have exposures to exchange rate fluctuations on its cost of goods sold, as well as volatility of input prices if foreign manufacturers and suppliers are impacted by exchange rate fluctuations.

Fluctuations in the availability and pricing of commodities, particularly polished diamonds and gold, which account for the majority of Signet’s merchandise costs, could adversely impact its earnings and cash availability.

The jewelry industry generally is affected by fluctuations in the price and supply of diamonds, gold and, to a lesser extent, other precious and semi-precious metals and stones. In particular, diamonds accounted for about 45%, and gold about 14%, of Signet’s merchandise costs in Fiscal 2018.

In Fiscal 2018, prices for the assortment of polished diamonds utilized by Signet decreased slightly compared to prior year. Industry forecasts indicate that over the medium and longer term, the demand for diamonds will probably increase faster than the growth in supply, particularly as a result of growing demand in countries such as China and India. Therefore, the cost of diamonds is anticipated to rise over time, although fluctuations in price are likely to continue to occur. The mining, production and inventory policies followed by major producers of rough diamonds can have a significant impact on diamond prices, as can the inventory and buying patterns of jewelry retailers and other parties in the supply chain.

While jewelry manufacturing is the major final demand for gold, management believes that the cost of gold is predominantly impacted by investment transactions which have resulted in significant volatility in the gold price in recent years. Signet’s cost of merchandise and potentially its earnings may be adversely impacted by investment market considerations that cause the price of gold to significantly escalate.

The availability of diamonds is significantly influenced by the political situation in diamond producing countries and by the Kimberley Process, an inter-governmental agreement for the international trading of rough diamonds. Until acceptable alternative sources of diamonds can be developed, any sustained interruption in the supply of diamonds from significant producing countries, or to the trading in rough and polished diamonds which could occur as a result of disruption to the Kimberley Process, could adversely affect Signet, as well as the retail jewelry market as a whole. In addition, the current Kimberley Process decision making procedure is dependent on reaching a consensus among member governments, which can result in the protracted resolution of issues, and there is little expectation of significant reform over the long-term. The impact of this review process on the supply of diamonds, and consumers’ perception of the diamond supply chain, is unknown. In addition to the Kimberley Process, the supply of diamonds to the US is also impacted by certain governmental trade sanctions imposed on Zimbabwe.

The possibility of constraints in the supply of diamonds of a size and quality Signet requires to meet its merchandising requirements may result in changes in Signet’s supply chain practices, for example its rough sourcing initiative. In addition, Signet may from time to time choose to hold more inventory, purchase raw materials at an earlier stage in the supply chain or enter into commercial agreements of a nature that it currently does not use. Such actions could require the investment of cash and/or additional management skills. Such actions may not result in the expected returns and other projected benefits anticipated by management.

An inability to increase retail prices to reflect higher commodity costs would result in lower profitability. Historically, jewelry retailers have been able, over time, to increase prices to reflect changes in commodity costs. However, in general, particularly sharp increases in commodity costs may result in a time lag before increased commodity costs are fully reflected in retail prices. As Signet uses an average cost inventory methodology, volatility in its commodity costs may also result in a time lag before cost increases are reflected in retail prices. There is no certainty that such price increases will be sustainable, so downward pressure on gross margins and earnings may occur. In addition, any sustained increases in the cost of commodities could result in the need to fund a higher level of inventory or changes in the merchandise available to the customer.

In August 2012, the SEC, pursuant to the Dodd-Frank Act, issued final rules, which require annual disclosure and reporting on the source and use of certain minerals, including gold, from the Democratic Republic of Congo and adjoining countries. The gold supply chain is complex and, while management believes that the rules currently cover less than 1% of annual worldwide gold production (based upon recent estimates), the final rules require Signet and other affected companies that file with the SEC to make specified country of origin inquiries of our suppliers, and otherwise to exercise reasonable due diligence in determining the country of origin and certain other information relating to any of the statutorily designated minerals (gold, tin, tantalum and tungsten), that are used in products sold by Signet in the US and elsewhere. On May 31, 2017, Signet filed with the SEC its Form Specialized Disclosure (“SD”) and accompanying Conflict Minerals Report in accordance with the SEC’s rules, which together describe our country of origin inquiries and due diligence measures relating to the source and chain of custody of those designated minerals Signet deemed necessary to the functionality or production of our products, the results of those activities and our related determinations with respect to the calendar year ended December 31, 2016.

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There may be reputational risks associated with the potential negative response of our customers and other stakeholders to future disclosures by Signet in the event that, due to the complexity of the global supply chain, Signet is unable to sufficiently verify the origin of the relevant metals. Also, if future responses to verification requests by suppliers of any of the covered minerals used in our products are inadequate or adverse, Signet’s ability to obtain merchandise may be impaired and our compliance costs may increase. The final rules also cover tungsten and tin, which are contained in a small proportion of items that are sold by Signet. It is possible that other minerals, such as diamonds, could be subject to similar rules.

Price increases and increased price transparency in the market may have an adverse impact on Signet’s performance.

Critical to maintaining an optimal customer experience is a multi-faceted value proposition that focuses on customer service, attractive brand and category assortments, availability of financing, and deep customer service and relationship building with our guest service professionals, as well as competitive pricing. Although not a singular differentiator to our value proposition, if significant price increases are implemented by any division or across a wide range of merchandise, the impact on earnings will depend on, among other factors, the pricing by competitors of similar products in the same geographic area and the response by customers to higher prices. Such price increases may result in lower sales and adversely impact earnings.

Signet’s competitors are specialty jewelry retailers, as well as other jewelry retailers, including department stores, mass merchandisers, discount stores, apparel and accessory fashion stores, brand retailers, shopping clubs, home shopping television channels, direct home sellers, online retailers and auction sites. In addition, other retail categories and other forms of expenditure, such as electronics and travel, also compete for consumers’ discretionary expenditure, particularly during the holiday gift giving season. Therefore, the price of jewelry relative to other products influences the proportion of consumers’ expenditure that is spent on jewelry. If the relative price of jewelry increases, Signet’s sales and earnings may decline.

Consumers are increasingly shopping or starting their jewelry buying experience online, which makes it easier for them to compare prices with other jewelry retailers. If Signet’s brands do not offer the same or similar item at the lowest price, consumers may purchase their jewelry from competitors, which would adversely impact the Company’s sales and results of operations.

The Company’s ability to satisfy the accounting requirements for “hedge accounting,” or the default or insolvency of a counterparty to a hedging contract, could adversely impact results.

Signet hedges a portion of its purchases of gold for both its Sterling Jewelers and UK Jewelry divisions and hedges the US dollar requirements of its UK Jewelry division. The failure to satisfy the requirements of the appropriate accounting requirements, or a default or insolvency of a counterparty to a contract, could increase the volatility of results and may impact the timing of recognition of gains and losses in the income statement.

The Company’s inability to obtain merchandise that customers wish to purchase, particularly ahead of and during the fourth quarter, could adversely impact sales.

The abrupt loss or disruption of any significant supplier during the three month period (August to October) leading up to the fourth quarter could result in a material adverse effect on Signet’s business.

Also, if management misjudges expected customer demand or fails to identify changes in customer demand and/or its supply chain does not respond in a timely manner, it could adversely impact Signet’s results by causing either a shortage of merchandise or an accumulation of excess inventory.

Signet benefits from close commercial relationships with a number of suppliers. Damage to, or loss of, any of these relationships could have a detrimental effect on results. Management holds regular reviews with major suppliers. Signet’s most significant supplier accounts for approximately 6% of merchandise. Government requirements regarding sources of commodities, such as those required by the Dodd-Frank Act, could result in Signet choosing to terminate relationships with suppliers in the future due to a change in a supplier’s sourcing practices or Signet’s compliance with laws and internal policies.

Luxury and prestige watch manufacturers and distributors normally grant agencies the right to sell their ranges on a store-by-store basis. The watch brands sold by Ernest Jones, and to a lesser extent Jared, help attract customers and build sales in all categories. Therefore, an inability to obtain or retain watch agencies for a location could harm the performance of that particular store. In the case of Ernest Jones, the inability to gain additional prestige watch agencies is an important factor in, and may reduce the likelihood of, opening new stores, which could adversely impact sales growth.

The growth in importance of branded merchandise within the jewelry market may adversely impact Signet’s sales and earnings if it is unable to obtain supplies of branded merchandise that the customer wishes to purchase. In addition, if Signet loses the distribution rights to an important branded jewelry range, it could adversely impact sales and earnings.

Signet has had success in recent years in the development of branded merchandise that is exclusive to its stores. If Signet is not able to further develop such branded merchandise or related initiatives, it may adversely impact sales and earnings.

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The Company’s ability to recruit, train, motivate and retain suitably qualified sales associates could adversely impact sales and earnings.

Management regards the customer experience as an essential element in the success of its business. Competition for suitable individuals or changes in labor and healthcare laws could require us to incur higher labor costs. Therefore an inability to recruit, train, motivate and retain suitably qualified sales associates could adversely impact sales and earnings.

Loss of confidence by consumers in Signet’s brand names, poor execution of marketing programs and reduced marketing expenditure could have a detrimental impact on sales.

Primary factors in determining customer buying decisions in the jewelry sector include customer confidence in the retailer and in the brands it sells, together with the level and quality of customer service. The ability to differentiate Signet’s stores and merchandise from competitors by its branding, marketing and advertising programs is an important factor in attracting consumers. If these programs are poorly executed, the level of support for them is reduced, or the customer loses confidence in any of Signet’s brands for whatever reason, it could unfavorably impact sales and earnings.

Long-term changes in consumer attitudes to jewelry could be unfavorable and harm jewelry sales.

Consumer attitudes to diamonds, gold and other precious metals and gemstones also influence the level of Signet’s sales. Attitudes could be affected by a variety of issues including concern over the source of raw materials; the impact of mining and refining of minerals on the environment, the local community and the political stability of the producing country; labor conditions in the supply chain; and the availability of and consumer attitudes to substitute products such as cubic zirconia, moissanite and laboratory-created diamonds. A negative change in consumer attitudes to jewelry could adversely impact sales and earnings.

The retail jewelry industry is highly fragmented and competitive.

The retail jewelry industry is competitive. If Signet’s competitive position deteriorates, operating results or financial condition could be adversely affected.

Aggressive discounting by competitors may adversely impact Signet’s performance in the short term. This is particularly the case for easily comparable pieces of jewelry, of similar quality, sold through stores that are situated near to those that Signet operates.

Signet faces significant competition from independent and regional specialty jewelry retailers that are able to adjust their competitive stance, for example on pricing, to local market conditions. This can put individual Signet stores at a competitive disadvantage as Signet divisions have a national pricing strategy.

The Company’s inability to rent stores that satisfy management’s operational and financial criteria could adversely impact sales, as could changes in locations where customers shop.

Signet’s results are dependent on a number of factors relating to its stores. These include the availability of desirable property, the demographic characteristics of the area around the store, the design and maintenance of the stores, the availability of attractive locations within the markets/trade areas that also meet the operational and financial criteria of management, the terms of leases and Signet’s relationship with major landlords. If Signet is unable to rent stores that satisfy its operationaland financial criteria, or if there is a disruption in its relationship with its major landlords, sales could be adversely affected.

Given the length of property leases that Signet enters into, it is dependent upon the continued popularity of particular retail locations. As Signet tests and develops new types of store locations and designs, there is no certainty as to their success. The majority of long-term space growth opportunities in the US are in new developments and therefore future store space is in part dependent on the investment by real estate developers in new projects. Limited new real estate development taking place would make it challenging to identify and secure suitable store locations. The UK Jewelry division has a more diverse range of store locations than in the US or Canada, including some exposure to smaller retail centers which do not justify the investment required to refurbish the site to the current store format. Consequently, the UK Jewelry division is gradually closing stores in such locations as leases expire or satisfactory property transactions can be executed; however, the ability to secure such property transactions is not certain.

The rate of store development is dependent on a number of factors including obtaining suitable real estate, the capital resources of Signet, the availability of appropriate staff and management and the level of the financial return on investment required by management.

Signet’s success is dependent on the strength and effectiveness of its relationships with its various stakeholders whose behavior may be affected by its management of social, ethical and environmental risks.

Social, ethical and environmental matters influence Signet’s reputation, demand for merchandise by consumers, the ability to recruit staff, relations with suppliers and standing in the financial markets. Signet’s success is dependent on the strength and effectiveness of its relationships with its various stakeholders: customers, shareholders, employees and suppliers. In recent years, stakeholder expectations have increased and Signet’s success and reputation will depend on its ability to meet these higher expectations. Signet’s success also depends upon its reputation for integrity in sourcing its merchandise, which, if adversely affected could impact consumer sentiment and willingness to purchase Signet’s merchandise.

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Inadequacies in and disruption to systems could result in lower sales and increased costs or adversely impact the reporting and control procedures.

Signet is dependent on the suitability, reliability and durability of its systems and procedures, including its accounting, information technology, data protection, warehousing and distribution systems, and those of our service providers. If support ceased for a critical externally supplied software package or system, management would have to implement an alternative software package or system or begin supporting the software internally. Disruption to parts of the business could result in lower sales and increased costs.

Signet is in the process of substantially modifying our enterprise resource planning systems, which involves updating or replacing legacy systems with successor systems over the course of several years. These system changes and upgrades can require significant capital investments and dedication of resources. While Signet follows a disciplined methodology when evaluating and making such changes, there can be no assurances that the Company will successfully implement such changes, that such changes will occur without disruptions to its operations or that the new or upgraded systems will achieve the desired business objectives. Any damage, disruption or shutdown of the Company’s information systems, or the failure to successfully implement new or upgraded systems, could have a direct material adverse effect on Signet’s results of operations.

An inability to successfully develop and maintain a relevant omni-channel experience for customers could adversely impact Signet’s business and results of operations.

Signet’s business has evolved from an in-store experience to interaction with customers across numerous channels, including in-store, online, mobile and social media, among others. Omni-channel retailing is rapidly evolving and Signet must keep pace with changing customer expectations and new developments by our competitors. Our customers are increasingly using computers, tablets, mobile phones and other devices to comparison shop, determine product availability and complete purchases online. Signet must compete by offering a consistent and convenient shopping experience for our customers regardless of the ultimate sales channel and by investing in, providing and maintaining digital tools for our customers that have the right features and are reliable and easy to use. If Signet is unable to make, improve, develop or acquire relevant customer-facing technology in a timely manner, the Company’s ability to compete and its results of operations could be materially and adversely affected. In addition, if Signet’s online activities or other customer-facing technology systems do not function as designed, the Company may experience a loss of customer confidence, data security breaches, lost sales or be exposed to fraudulent purchases, any of which could materially and adversely affect our business operations, reputation and results of operations.

Security breaches and other disruptions to Signet’s information technology infrastructure and databases could interfere with Signet’s operations, and could compromise Signet’s and its customers’ and suppliers’ information, exposing Signet to liability which would cause Signet’s business and reputation to suffer.

Signet operates in multiple channels and, in the Sterling Jewelers division, maintains its own customer financing operation. Signet is also increasingly using mobile devices, social media and other online activities to connect with customers, staff and other stakeholders. Therefore, in the ordinary course of business, Signet relies upon information technology networks and systems, some of which are managed by third parties, to process, transmit and store electronic information, and to manage or support a variety of business processes and activities, including e-commerce sales, supply chain, merchandise distribution, customer invoicing and collection of payments. Signet uses information technology systems to record, process and summarize financial information and results of operations for internal reporting purposes and to comply with regulatory financial reporting, legal and tax requirements. Additionally, Signet collects and stores sensitive data, including intellectual property, proprietary business information, the propriety business information of our customers and suppliers, as well as personally identifiable information of Signet’s customers and employees, in data centers and on information technology networks. The secure operation of these networks, and the processing and maintenance of this information is critical to Signet’s business operations and strategy. Despite security measures and business continuity plans, we may not timely anticipate evolving techniques used to effect security breaches that may result in damage, disruptions or shutdowns of Signet’s and our third-party vendors’ networks and infrastructure due to attacks by hackers, including phishing or other cyber-attacks, or breaches due to employee error or malfeasance, or other disruptions during the process of upgrading or replacing computer software or hardware, power outages, computer viruses, telecommunication or utility failures or natural disasters or other catastrophic events. The occurrence of any of these events could compromise Signet’s networks and the information stored there, including personal, proprietary or confidential information about Signet, our customers or our third-party vendors, and personally identifiable information of Signet’s customers and employees could be accessed, manipulated, publicly disclosed, lost or stolen, exposing our customers to the risk of identity theft and exposing Signet or our third-party vendors to a risk of loss or misuse of this information. To date, these attacks or breaches have not had a material impact on Signet’s business or operations; however, any such access, disclosure or other loss of information could result in legal claims or proceedings, liability or regulatory penalties under laws protecting the privacy of personal information, significant breach-notification costs, lost sales and a disruption to operations (including our ability to process consumer transactions and manage inventories), media attention, and damage to Signet’s reputation, which could adversely affect Signet’s business. In addition, it could harm Signet’s reputation and ability to execute its business through service and business interruptions, management distraction and/or damage to physical infrastructure, which could adversely impact sales, costs and earnings. If Signet is the target of a cybersecurity attack resulting in unauthorized disclosure of our customer data, we may be required to undertake costly notification and credit monitoring procedures. Compliance with these laws will likely increase the costs of doing business.

The regulatory environment related to information security, data collection and privacy is becoming increasingly demanding, with new and changing requirements applicable to Signet’s business, and compliance with those requirements could result in additional costs, such as costs related to organizational changes, implementing additional protection technologies, training employees and engaging consultants.

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These risks could have a material adverse effect on Signet’s results of operations, financial condition and cash flow.

An adverse decision in legal proceedings, tax matters, and/or regulatory or other state investigations could reduce earnings.

Signet is involved in legal proceedings incidental to its business. Litigation is inherently unpredictable. Any claims against us, whether meritorious or not, could be time consuming, result in costly litigation, require significant amounts of management time and result in the diversion of significant operational resources.

In March 2008, private plaintiffs filed a class action lawsuit for an unspecified amount against Sterling Jewelers Inc. (“Sterling”), a subsidiary of Signet, in US District Court for the Southern District of New York, which has been referred to private arbitration. Sterling denies the allegations and has been defending this case vigorously. If, however, it is unsuccessful in its defense, Sterling could be required to pay substantial damages. At this point, no outcome or amount of loss is able to be estimated. See Note 26 in Item 8.

In August 2016, individual plaintiffs filed putative class actions asserting claims under the federal securities laws in the US District Court for the Southern District of New York against the Company and its Chief Executive Officer and Chief Financial Officer seeking an unspecified amount of damages. The cases were consolidated and an amended complaint was filed in January 2017. Plaintiffs sought leave from court which was granted to file a second amended complaint. Signet denies the current allegations and intends to defend the case vigorously. If, however, it is unsuccessful in its defense, Signet could be required to pay substantial damages. At this point, no outcome or amount of loss is able to be estimated. See Note 26 in Item 8.

On September 6, 2017, the Bureau notified Signet that, in accordance with the CFPB’s discretionary Notice and Opportunity to Respond and Advise (“NORA”) process, the CFPB’s Office of Enforcement is considering recommending that the CFPB take legal action against Signet, alleging that Signet violated §§ 1031 and 1036 of the Consumer Financial Protection Act of 2010, 12 U.S.C. §§ 5531, 5536, and the Truth in Lending Act, 15 U.S.C. § 1601 et seq., and its implementing regulation, relating to in-store: credit practices, promotions, and payment protection products. The Attorney General for the State of New York (“NYAG”) is investigating similar issues under its jurisdiction. See Note 26 in Item 8.

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 income tax in the period in which such determinations are made.

Failure to comply with labor regulations could adversely affect the Company’s business.

State, federal and global laws and regulations regarding employment change frequently and the ultimate cost of compliance cannot be precisely estimated. Failure by Signet to comply with labor regulations could result in fines and legal actions. In addition, the ability to recruit and retain staff could be harmed.

Collective bargaining activity could disrupt the Company’s operations, increase our labor costs or interfere with the ability of our management to focus on executing our business strategies.

The employees of our diamond polishing factory in Garborone, Botswana are covered by a collective bargaining agreement. If relationships with these employees become adverse, operations at the factory could experience labor disruptions such as strikes, lockouts, boycotts and public demonstrations. Labor regulation and the negotiation of new or existing collective bargaining agreements could lead to higher wage and benefit costs, changes in work rules that raise operating expenses, legal costs and limitations on our ability to take cost saving measures during economic downturns.

The Company’s ability to comply with changes in laws and regulations could adversely affect our business.

Signet’s policies and procedures are designed to comply with all applicable laws and regulations. Changing legal and regulatory requirements in the US and other jurisdictions in which Signet operates have increased the complexity of the regulatory environment in which the business operates and the cost of compliance. Failure to comply with the various regulatory requirements may result in damage to Signet’s reputation, civil and criminal liability, fines and penalties, and further increase the cost of regulatory compliance.

Changes in existing taxation benefits, rules or practices may adversely affect the Company’s financial results.

The Company operates through various subsidiaries in numerous countries throughout the world. Consequently, Signet is subject to changes in tax laws, treaties or regulations or the interpretation or enforcement thereof in the United States or jurisdictions where any subsidiaries operate or are incorporated. Tax laws, treaties and regulations are highly complex and subject to interpretation. The Company’s income tax expense is based upon interpretation of the tax laws in effect in various countries at the time such expense was incurred. If these tax laws, treaties or regulations were to change or any tax authority were to successfully challenge our assessment of the effects of such laws, treaties and regulations in any country, this could result in a higher effective tax rate on the Company’s taxable earnings, which could have a material adverse effect on the Company’s results of operations.

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In addition, the Organization for Economic Co-Operation and Development (“OECD”) has published an action plan seeking multilateral cooperation to reform the taxation of multinational companies. Countries already have begun to implement some of these action items, and likely will continue to adopt more of them over the next several years. This may result in unilateral or uncoordinated local country application of the action items. Any such inconsistencies in the tax laws of countries where the Company operates or is incorporated may lead to increased uncertainty with respect to tax positions or otherwise increase the potential for double taxation. Proposals for U.S. tax reform also potentially could have a significant adverse effect on us. In addition, the European Commission has conducted investigations in multiple countries focusing on whether local country tax legislation or rulings provide preferential tax treatment in violation of European Union state aid rules. Any impacts of these actions could increase the Company’s tax liabilities, which in turn could have a material adverse effect on the Company’s results of operations and financial condition.

The Parent Company is incorporated in Bermuda. The directors intend to conduct the Parent Company’s affairs such that, based on current law and practice of the relevant tax authorities, the Parent Company will not becomeresident for tax purposes in any other territory. At the present time, there is no Bermuda income or profits tax, withholding tax, capital gains tax, capital transfer tax, estate duty or inheritance tax payable by the Parent Company or by its shareholders in respect of its common shares. The Parent Company has obtained an assurance from the Minister of Finance of Bermuda under the Exempted Undertakings Tax Protection Act 1966 that, in the event that any legislation is enacted in Bermuda imposing any tax computed on profits or income, or computed on any capital asset, gain or appreciation or any tax in the nature of estate duty or inheritance tax, such tax shall not, until March 31, 2035, be applicable to it or to any of its operations or to its shares, debentures or other obligations except insofar as such tax applies to persons ordinarily resident in Bermuda or is payable by it in respect of real property owned or leased by it in Bermuda. Given the limited duration of the Minister of Finance’s assurance, the Parent Company cannot be certain that it will not be subject to Bermuda tax after March 31, 2035. In the event the Parent Company were to become subject to any Bermuda tax after such date, it could have a material adverse effect on the Parent Company’s results of operations and financial condition.

Likewise, Signet’s non-U.S. subsidiaries operate in a manner that they should not be subject to U.S. income tax because none of them should be treated as engaged in a trade or business in the U.S. If, despite this, the IRS were to successfully contend that the Parent Company or any of its non-U.S. subsidiaries are engaged in a trade or business in the U.S., such entity could be subject to U.S. corporate income and branch profits taxes on the portion of its earnings effectively connected to such U.S. business, which could adversely affect the Company’s results of operations.

In addition, The Tax Cuts and Jobs Act of 2017 (the “TCJ Act”), which was signed into law on December 22, 2017, makes significant changes to the taxation of U.S. business entities. These changes include a permanent reduction to the federal corporate income tax rate and changes in the deductibility of interest on corporate debt obligations, among others. The Company is currently evaluating the TCJ Act. The full impact of the TCJ Act on the Company in future periods cannot be predicted at this time and no assurances in that regard are made by the Company.

Investors may face difficulties in enforcing proceedings against Signet Jewelers Limited as it is domiciled in Bermuda.

It is doubtful whether courts in Bermuda would enforce judgments obtained by investors in other jurisdictions, including the US, Canada and the UK, against the Parent Company or its directors or officers under the securities laws of those jurisdictions or entertain actions in Bermuda against the Parent Company or its directors or officers under the securities laws of other jurisdictions.

Any difficulty executing or integrating an acquisition, a business combination or a major business initiative may result in expected returns and other projected benefits from such an exercise not being realized.

Any difficulty in executing or integrating an acquisition, a business combination, a major business initiative or a transformation plan, including our direct diamond sourcing capabilities, may result in expected returns and other projected benefits from such anexercise not being realized. The acquisition of companies with operating margins lower than that of Signet may cause an overall lower operating margin for Signet. Signet’s current borrowing agreements place certain limited constraints on our ability to make an acquisition or enter into a business combination, and future borrowing agreements could place tighter constraints on such actions.

A significant transaction could also disrupt the operation of our current activities and divert significant management time and resources. For example, Signet experienced disruptions in its information technology systems and processes during its credit outsourcing transition in 2017, including server interruptions and downtime, which resulted in calls to customer service centers leading to long wait times. In addition, Signet announced a new transformation plan in 2018. Any such difficulty in executing an acquisition, business combination, a major business initiative or a transformation plan could have a direct material adverse effect on Signet’s results of operations.

The Company’s ability to protect intellectual property could have a negative impact on our brands, reputation and operating results.

Signet’s trade names, trademarks, copyrights, patents and other intellectual property are important assets and an essential element of the Company’s strategy. The unauthorized reproduction, theft or misappropriation of Signet’s intellectual property could diminish the value of its brands or reputation and cause a decline in sales. Protection of Signet’s intellectual property and maintenance of distinct branding are particularly important as they distinguish our products and services from those of our competitors. The costs of defending our intellectual property may adversely affect the Company’s operating results. In addition, any infringement or other intellectual property claim made against Signet, whether or not it has merit, could be time-consuming, result in costly litigation, cause product delays, or require the Company to enter into royalty or licensing agreements. As a result, any such claim could have a material adverse effect on Signet’s operating results.

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If the Company’s goodwill or indefinite-lived intangible assets become impaired, we may be required to record significant charges to earnings.

We have a substantial amount of goodwill and indefinite-lived intangible assets on our balance sheet as a result of acquisitions. We review goodwill and indefinite-lived intangible assets for impairment annually or whenever events or circumstances indicate impairment may have occurred. During the first quarter of Fiscal 2019, the Company observed a general decline in the market valuation of the Company’s common shares which could impact the assumptions used to perform an evaluation of its indefinite-lived intangible assets, including goodwill and trade names. Application of the impairment test requires judgment, including the identification of reporting units, assignment of assets, liabilities and goodwill to reporting units, and the determination of fair value of each reporting unit. There is a risk that a significant deterioration in a key estimate or assumption or a less significant deterioration to a combination of assumptions or the sale of a part of a reporting unit could result in an impairment charge in the future, which could have a significant adverse impact on our reported earnings.

For further information on our testing for goodwill impairment, see “Critical Accounting Policies” under Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Recent changes in the Company’s executive management team or the loss of additional key executive officers or employees could be disruptive to, or cause uncertainty in, its business or adversely impact performance.

On July 31, 2017, Mark Light retired from the Board of Directors and his position as Chief Executive Officer of the Company. The Company’s Board of Directors appointed Virginia C. Drosos, a member of the Board of Directors, as the Company’s Chief Executive Officer.

Signet’s future success will partly depend upon the ability of senior management and other key employees to implement an appropriate business strategy. While Signet has entered into termination protection agreements with such key personnel, the retention of their services cannot be guaranteed and the loss of such services could have a material adverse effect on Signet’s ability to conduct its business. If the Company is not effective in succession planning, there may be a negative impact on the Company's ability to successfully hire for key executive management roles in a timely manner. In addition, any new executives may wish, subject to Board approval, to change the strategy of Signet. The appointment of new executives may therefore adversely impact performance.

Signet’s business could be affected by extreme weather conditions or natural disasters.

Extreme weather conditions in the areas in which the Company’s stores are located could negatively affect the Company’s business and results of operations. For example, frequent or unusually heavy snowfall, ice storms, or other extreme weather conditions over a prolonged period could make it difficult for the Company’s customers to travel to its stores and thereby reduce the Company’s sales and profitability.

In addition, natural disasters such as hurricanes, tornadoes, earthquakes, or wildfires, or a combination of these or other factors, could damage or destroy the Company’s facilities or make it difficult for customers to travel to its stores, thereby negatively affecting the Company’s business and results of operations.

ITEM 1B. UNRESOLVED STAFF COMMENTS

Not applicable.

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ITEM 2. PROPERTIES

The following table provides the location, use and size of our distribution, corporate and other non-retail facilities required to support the Company’s global operations as of February 3, 2018:

Location	Function	Approximate square footage	Lease or Own	Lease expiration
Akron, Ohio	Corporate and distribution	460,000	Lease	2048
Akron, Ohio	Credit(1)	86,000	Lease	2048
Akron, Ohio	Training	12,000	Lease	2048
Akron, Ohio	Repair facility	38,000	Own	N/A
Akron, Ohio	Corporate	34,900	Lease	2019
Barberton, Ohio	Non-merchandise fulfillment	135,000	Lease	2032
New York City, New York	Design	4,600	Lease	2019
New York City, New York	Diamond trading	2,000	Lease	2021
New York City, New York	Corporate	10,824	Lease	2023
New York City, New York	Corporate	813	Lease	2018
New York City, New York	Storage	1,254	Lease	2023
Irving, Texas	Corporate and distribution	414,000	Lease	2018
Dallas, Texas	Repair facility	30,800	Lease	2028
Dallas, Texas	Corporate	225,000	Lease	2028
Frederick, Maryland	Customer service	7,716	Lease	2018
Toronto, Ontario (Canada)	Distribution and fulfillment	26,000	Lease	2019
Birmingham, UK	Corporate, distribution and e-commerce fulfillment	235,000	Own	N/A
Borehamwood, Hertfordshire (UK)	Corporate	36,200	Lease	2020
Gaborone, Botswana	Diamond polishing	34,200	Own	N/A
Mumbai, India	Diamond liaison	3,000	Lease	2018
Mumbai, India	Diamond liaison	2,936	Lease	2019
Ramat-Gan, Israel	Technology center	1,000	Lease	2019
Herzelia, Israel	Technology center	7,125	Lease	2019

⁽¹⁾   In October 2017, Signet, through its subsidiary Sterling, completed the sale of the prime-only credit quality portion of Sterling’s in-house finance receivable portfolio. In conjunction with this transaction, the indicated property has been subleased to multiple third party service providers. See Note 3 of Item 8 for further details.

Sufficient distribution exists in all geographies to meet the respective needs of the Company’s operations.

Global retail property

Signet attributes great importance to the location and appearance of its stores. Accordingly, in each of Signet’s divisions, investment decisions on selecting sites and refurbishing stores are made centrally, and strict real estate and investment criteria are applied. Below is a summary of property details by geography for our retail operations as of February 3, 2018:

	Sterling Jewelers division				Zale division						UK Jewelry division			Signet
	Kay	Jared	Regional brands	Total	Zales	Peoples	Regional brands	Total Zale Jewelry	Piercing Pagoda	Total	H.Samuel	Ernest Jones	Total	Total stores
US	1,247	274	65	1,586	704	—	17	721	598	1,319	—	—	—	2,905
Canada	—	—	—	—	—	129	18	147	—	147	—	—	—	147
United Kingdom	—	—	—	—	—	—	—	—	—	—	289	198	487	487
Republic of Ireland	—	—	—	—	—	—	—	—	—	—	10	4	14	14
Channel Islands	—	—	—	—	—	—	—	—	—	—	2	1	3	3
Total	1,247	274	65	1,586	704	129	35	868	598	1,466	301	203	504	3,556

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Store locations by US state and Canadian province, as of February 3, 2018, are as follows:

	Sterling Jewelers division				Zale division						Signet
	Kay	Jared	Regional brands	Total	Zales	Peoples	Regional brands	Total Zale Jewelry	Piercing Pagoda	Total	Total Stores
Alabama	28	4	1	33	12	—	—	12	4	16	49
Alaska	3	—	—	3	2	—	—	2	—	2	5
Arizona	20	8	1	29	12	—	—	12	10	22	51
Arkansas	10	1	—	11	9	—	1	10	—	10	21
California	80	20	—	100	53	—	—	53	41	94	194
Colorado	16	6	—	22	16	—	—	16	4	20	42
Connecticut	14	2	1	17	10	—	—	10	15	25	42
Delaware	4	2	—	6	4	—	—	4	6	10	16
Florida	89	23	6	118	52	—	2	54	71	125	243
Georgia	53	13	3	69	23	—	—	23	12	35	104
Hawaii	8	1	—	9	6	—	—	6	—	6	15
Idaho	5	1	—	6	2	—	—	2	—	2	8
Illinois	46	12	1	59	24	—	—	24	20	44	103
Indiana	31	6	5	42	13	—	—	13	14	27	69
Iowa	21	2	—	23	7	—	—	7	4	11	34
Kansas	9	2	—	11	7	—	—	7	5	12	23
Kentucky	21	3	3	27	8	—	—	8	6	14	41
Louisiana	19	3	1	23	15	—	4	19	—	19	42
Maine	6	1	—	7	1	—	—	1	2	3	10
Maryland	31	9	3	43	15	—	—	15	23	38	81
Massachusetts	25	6	1	32	11	—	—	11	21	32	64
Michigan	43	9	5	57	18	—	—	18	9	27	84
Minnesota	17	4	2	23	9	—	—	9	7	16	39
Mississippi	15	—	—	15	8	—	—	8	—	8	23
Missouri	24	5	—	29	10	—	—	10	6	16	45
Montana	3	—	—	3	—	—	—	—	—	—	3
Nebraska	8	—	—	8	3	—	—	3	1	4	12
Nevada	10	3	—	13	7	—	1	8	5	13	26
New Hampshire	11	4	2	17	5	—	—	5	7	12	29
New Jersey	31	8	—	39	18	—	—	18	33	51	90
New Mexico	5	1	—	6	9	—	—	9	3	12	18
New York	68	8	1	77	42	—	—	42	64	106	183
North Carolina	49	12	—	61	19	—	—	19	19	38	99
North Dakota	4	—	—	4	3	—	—	3	1	4	8
Ohio	72	16	10	98	19	—	—	19	22	41	139
Oklahoma	15	2	—	17	10	—	2	12	2	14	31
Oregon	15	3	—	18	4	—	—	4	5	9	27
Pennsylvania	62	11	4	77	31	—	—	31	60	91	168
Rhode Island	4	1	—	5	2	—	—	2	3	5	10
South Carolina	27	3	1	31	10	—	—	10	7	17	48
South Dakota	3	—	—	3	3	—	—	3	1	4	7
Tennessee	29	8	1	38	18	—	—	18	5	23	61

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Texas	84	31	—	115	99	—	7	106	19	125	240
Utah	11	3	—	14	1	—	—	1	3	4	18
Vermont	2	—	—	2	1	—	—	1	1	2	4
Virginia	41	10	3	54	25	—	—	25	25	50	104
Washington	19	3	4	26	12	—	—	12	13	25	51
West Virginia	10	—	4	14	5	—	—	5	7	12	26
Wisconsin	24	4	2	30	8	—	—	8	12	20	50
Wyoming	2	—	—	2	3	—	—	3	—	3	5
US	1,247	274	65	1,586	704	—	17	721	598	1,319	2,905
Alberta	—	—	—	—	—	20	2	22	—	22	22
British Columbia	—	—	—	—	—	21	2	23	—	23	23
Manitoba	—	—	—	—	—	5	—	5	—	5	5
New Brunswick	—	—	—	—	—	3	—	3	—	3	3
Newfoundland	—	—	—	—	—	2	—	2	—	2	2
Nova Scotia	—	—	—	—	—	5	—	5	—	5	5
Ontario	—	—	—	—	—	64	14	78	—	78	78
Prince Edward Island	—	—	—	—	—	1	—	1	—	1	1
Saskatchewan	—	—	—	—	—	8	—	8	—	8	8
Canada	—	—	—	—	—	129	18	147	—	147	147
Total North America	1,247	274	65	1,586	704	129	35	868	598	1,466	3,052

North America retail property

Signet’s Sterling Jewelers, Zale Jewelry and Piercing Pagoda segments operate stores and kiosks in the US, with substantially all of the locations being leased. In addition to a minimum annual rent cost, the majority of mall stores are also liable to pay rent based on sales above a specified base level. In Fiscal 2018, most of the mall stores and kiosks only made base rental payments. Under the terms of a typical lease, the Company is required to conform and maintain its usage to agreed standards, including meeting required advertising expenditure as a percentage of sales, and are responsible for its proportionate share of expenses associated with common area maintenance, utilities and taxes of the mall.

The initial term of a mall store lease is generally ten years for Sterling Jewelers and Zale Jewelry and one to five years for Piercing Pagoda kiosks. Towards the end of a lease, management evaluates whether to renew a lease and refit the store, using similar operational and investment criteria as for a new store. Where management is uncertain whether the location will meet management’s required return on investment, but the store is profitable, the leases may be renewed for one to five years, during which time the store’s performance is further evaluated. There are typically 250 to 300 such mall stores at any one time in the Sterling Jewelers segment, as well as the Zale Jewelry segment. Jared stores are normally opened on 10 year leases with options to extend the lease, and rents are not sales related. A refurbishment of a Jared store is normally undertaken every five to ten years.

The Zale Jewelry segment operates stores in Canada, all under operating leases, with terms and characteristics similar to the US locations described above.

At February 3, 2018, the average unexpired lease term of leased premises for the Sterling Jewelers segment was approximately 5 years for mall locations and 7 years for off-mall locations. Approximately 52% of these leases had terms expiring within five years. The cost of remodeling a mall store is similar to the cost of a new mall store, which is typically between $0.1 million and $0.5 million, depending on the scope of the remodel project. Jared refurbishments typically cost on average less than $0.2 million. New Jared stores typically cost between $2.1 million and $3.3 million. In Fiscal 2018, a total of 42 store locations were remodeled (Fiscal 2017: 64 locations).

At February 3, 2018, the average unexpired lease term of leased premises for the Zale Jewelry and Piercing Pagoda segments was 4 and 2 years, respectively, with approximately 80% of these leases having terms expiring within five years. The cost of remodeling a Zale Jewelry mall store is similar to the cost of a new mall store, which is typically between $0.3 million and $0.7 million. The cost of a new Piercing Pagoda kiosk approximates $0.1 million. In Fiscal 2018, store remodels were completed at 36 Zale Jewelry stores and 53 Piercing Pagoda kiosks. In Fiscal 2017, store remodels were completed at 42 Zale Jewelry stores and 83 Piercing Pagoda kiosks.

In the US, the Sterling Jewelers, Zale Jewelry and Piercing Pagoda segments collectively lease approximately 15% of store and kiosk locations from a single lessor. In Canada, Zale Jewelry leases approximately 50% of its store locations from four lessors, with no individual lessor relationship exceeding 15% of its store locations. The segments had no other relationship with any lessor relating to 10% or more of its locations.

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During the past five fiscal years, the Company generally has been successful in renewing its store leases as they expire and has not experienced difficulty in securing suitable locations for its stores. No store lease is individually material to Signet’s Sterling Jewelers, Zale Jewelry or Piercing Pagoda operations.

UK retail property

The UK Jewelry division’s stores are generally leased under full repairing and insuring leases (equivalent to triple net leases in the US). Wherever possible, Signet is shortening the length of new leases that it enters into, or including break clauses in order to improve the flexibility of its lease commitments. At February 3, 2018, the average unexpired lease term of UK Jewelry premises was 6 years, and a majority of leases had either break clauses or terms expiring within five years. Rents are usually subject to upward review every five years if market conditions so warrant. An increasing proportion of rents also have an element related to the sales of a store, subject to a minimum annual value.

At the end of the lease period, subject to certain limited exceptions, UK Jewelry leaseholders generally have statutory rights to enter into a new lease of the premises on negotiated terms. As current leases expire, Signet believes that it will be able to renew leases, if desired, for present store locations or to obtain leases in equivalent or improved locations in the same general area. Signet has not experienced difficulty in securing leases for suitable locations for its UK Jewelry stores. No store lease is individually material to Signet’s UK Jewelry operations.

A typical UK Jewelry store undergoes a major remodel every ten years and a less costly refurbishment every five years. It is intended that these investments will be financed by cash from operating activities. The cost of remodeling a regular store is typically between £150,000 and £600,000 for both H.Samuel and Ernest Jones, while remodels in prestigious locations typically doubles those costs.

The UK Jewelry division has no relationship with any lessor relating to 10% or more of its store locations.

Other

The Company has entered into agreements to assign or sublease certain premises as of February 3, 2018. See Note 26 of Item 8 for additional information.

ITEM 3. LEGAL PROCEEDINGS

See discussion of legal proceedings in Note 26 of Item 8.

ITEM 4. MINE SAFETY DISCLOSURE

Not applicable.

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PART II

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Market and dividend information

The Company’s common shares (symbol: SIG) are traded on the New York Stock Exchange. The following table sets forth the high and low sale prices per common share and the dividends per share declared on the common shares during the periods indicated:

	Fiscal 2018						Fiscal 2017
	High		Low		Dividend		High		Low		Dividend
First quarter	$	79.16	$	63.25	$	0.31	$	124.03	$	94.71	$	0.26
Second quarter	$	65.68	$	47.88	$	0.31	$	109.48	$	79.26	$	0.26
Third quarter	$	69.75	$	51.89	$	0.31	$	95.50	$	73.16	$	0.26
Fourth quarter	$	76.58	$	49.80	$	0.31	$	98.72	$	79.99	$	0.26

On March 14, 2018, the Board of Directors (the “Board”) declared a 20% increase in the first quarter dividend, resulting in an increase from $0.31 to $0.37 per Signet common share. Future payments of quarterly dividends will be based on Signet’s ability to satisfy all applicable statutory and regulatory requirements and its continued financial strength. Any future payment of cash dividends will depend upon such factors as Signet’s earnings, capital requirements, financial condition, restrictions under Signet’s credit facility, legal restrictions and other factors deemed relevant by the Board.

Number of common shareholders

As of March 28, 2018, there were approximately 7,144 shareholders of record.

Repurchases of equity securities

The following table contains the Company’s repurchases of common shares in the fourth quarter of Fiscal 2018:

Period	Total number of shares purchased	Average price paid per share		Total number of shares purchased as part of publicly announced plans or programs(1)	Approximate dollar value of shares that may yet be purchased under the plans or programs
October 29, 2017 to November 25, 2017	—	$	—	—	$650,586,636
November 26, 2017 to December 30, 2017	—	$	—	—	$650,586,636
December 31, 2017 to February 3, 2018	—	$	—	—	$650,586,636
Total	—	$	—	—	$650,586,636

⁽¹⁾   In February 2016 and August 2016, the Board of Directors authorized the repurchase of Signet’s common shares up to $750.0 million and $625.0 million, respectively, for a combined total of $1,375.0 million (the “2016 Program”). In June 2017, the Board of Directors authorized a new program to repurchase $600.0 million of Signet’s common shares (the “2017 Program”). The 2016 Program and 2017 Program may be suspended or discontinued at any time without notice. See Note 7 of Item 8 for additional information.

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Performance graph

The following performance graph and related information shall not be deemed “soliciting material” or to be filed with the SEC, nor shall such information be incorporated by reference into any future filing under the Securities Act of 1933 or Securities Exchange Act of 1934, each as amended, except to the extent that Signet specifically incorporates it by reference into such filing.

Historical share price performance should not be relied upon as an indication of future share price performance. The following graph compares the cumulative total return to holders of Signet’s common shares against the cumulative total return of the S&P 500 Index and the S&P 500 Specialty Retail Index for the five year period ended February 3, 2018. The comparison of the cumulative total returns for each investment assumes that $100 was invested in Signet’s common shares and the respective indices on February 2, 2013 through February 3, 2018.

Related Shareholder Matters

The Parent Company is classified by the Bermuda Monetary Authority as a non-resident of Bermuda for exchange control purposes. Issues and transfers of common shares involving persons regarded as non-residents of Bermuda for exchange control purposes may be effected without specific consent under the Exchange Control Act 1972 of Bermuda and regulations thereunder. Issues and transfers of common shares involving persons regarded as residents in Bermuda for exchange control purposes may require specific prior approval under the Exchange Control Act 1972 of Bermuda and regulations thereunder.

The owners of common shares who are non-residents of Bermuda are not subject to any restrictions on their rights to hold or vote their shares. Because the Parent Company is classified as a non-resident of Bermuda for exchange control purposes, there are no restrictions on its ability to transfer funds into and out of Bermuda or to pay dividends, other than in respect of local Bermuda currency.

There is no reciprocal tax treaty between Bermuda and the United States regarding withholding taxes. Under existing Bermuda law, there is no Bermuda income or withholding tax on dividends paid by the Parent Company to its shareholders. Furthermore, under existing Bermuda law, no Bermuda tax is levied on the sale or transfer of Signet common shares.

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ITEM 6. SELECTED CONSOLIDATED FINANCIAL DATA

The financial data included below for Fiscal 2018, Fiscal 2017 and Fiscal 2016 has been derived from the audited consolidated financial statements included in Item 8. The financial data for these periods should be read in conjunction with the financial statements, including the notes thereto, and Item 7. The financial data included below for Fiscal 2015 and Fiscal 2014 has been derived from the previously published consolidated audited financial statements not included in this document.

FINANCIAL DATA:	Fiscal 2018(1)			Fiscal 2017			Fiscal 2016			Fiscal 2015(2)			Fiscal 2014
Income statement:	(in millions)
Sales	$	6,253.0		$	6,408.4		$	6,550.2		$	5,736.3		$	4,209.2
Gross margin	$	2,190.0		$	2,360.8		$	2,440.4		$	2,074.2		$	1,580.5
Selling, general and administrative expenses	$	(1,872.2	)	$	(1,880.2	)	$	(1,987.6	)	$	(1,712.9	)	$	(1,196.7	)
Operating income	$	579.9		$	763.2		$	703.7		$	576.6		$	570.5
Net income attributable to common shareholders	$	486.4		$	531.3		$	467.9		$	381.3		$	368.0
Adjusted EBITDA(3)	$	770.3		$	955.0		$	891.5		$	762.9		$	680.7
Same store sales percentage (decrease) increase	(5.3		)%	(1.9		)%	4.1		%	4.1		%	4.4		%
	(Income statement as a % of sales)
Sales	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%
Gross margin	35.0		%	36.8		%	37.3		%	36.2		%	37.5		%
Selling, general and administrative expenses	(29.9		)%	(29.3		)%	(30.4		)%	(29.9		)%	(28.4		)%
Operating income	9.3		%	11.9		%	10.7		%	10.0		%	13.5		%
Net income attributable to common shareholders	7.8		%	8.3		%	7.1		%	6.6		%	8.7		%
Adjusted EBITDA(3)	12.3		%	14.9		%	13.6		%	13.3		%	16.2		%
Per share data:
Earnings per common share:
Basic	$	7.72		$	7.13		$	5.89		$	4.77		$	4.59
Diluted	$	7.44		$	7.08		$	5.87		$	4.75		$	4.56
Dividends declared per common share	$	1.24		$	1.04		$	0.88		$	0.72		$	0.60
Weighted average common shares outstanding:	(in millions)
Basic	63.0			74.5			79.5			79.9			80.2
Diluted	69.8			76.7			79.7			80.2			80.7
Balance sheet:	(in millions)
Total assets	$	5,839.6		$	6,597.8		$	6,464.9		$	6,203.0		$	3,916.1
Total liabilities	$	2,726.2		$	3,495.7		$	3,404.2		$	3,392.6		$	1,353.0
Series A redeemable convertible preferred shares	$	613.6		$	611.9		n/a			n/a			n/a
Net (debt) cash(3)	$	(507.1	)	$	(1,310.3	)	$	(1,241.0	)	$	(1,256.4	)	$	228.3
Working capital	$	2,408.9		$	3,438.9		$	3,437.0		$	3,210.3		$	2,467.0
Common shares outstanding	60.5			68.3			79.4			80.3			80.2

⁽¹⁾  On September 12, 2017, the Company completed the acquisition of R2Net. Fiscal 2018 results include R2Net’s results since the date of acquisition. See Note 3 of Item 8 for additional information.

⁽²⁾  On May 29, 2014, the Company completed the acquisition of Zale Corporation. Fiscal 2015 results include Zale Corporation’s results since the date of acquisition.

⁽³⁾    Adjusted EBITDA and net (debt) cash are non-GAAP measures; see “GAAP and non-GAAP Measures” below.

n/a Not applicable as Series A redeemable convertible preferred shares were issued in October 2016.

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	Fiscal 2018				Fiscal 2017				Fiscal 2016				Fiscal 2015(1)				Fiscal 2014
Other financial data:
Free cash flow (in millions)(2)	$	1,703.1			$	400.3			$	216.8			$	62.8			$	82.8
Effective tax rate	1.5		%		23.9		%		28.9		%		29.5		%		35.0		%
ROCE(2)	19.1		%		21.4		%		21.0		%		19.5		%		25.2		%
Adjusted leverage ratio(2)	3.1x				3.6x				3.3x				3.5x				1.8x
Store and employee data:
Store locations (at end of period)	3,556				3,682				3,625				3,579				1,964
Number of employees (full-time equivalents)	24,888			(3)	29,566			(3)	29,057			(3)	28,949			(3)	18,179

⁽¹⁾  On May 29, 2014, the Company completed the acquisition of Zale Corporation. Fiscal 2015 includes Zale Corporation’s results since the date of acquisition.

⁽²⁾    Free cash flow, ROCE and adjusted leverage ratio are non-GAAP measures; see “GAAP and non-GAAP Measures” below.

⁽³⁾  Number of employees includes 127, 194, 226 and 211 full-time equivalents employed in the diamond polishing plant located in Botswana for Fiscal 2017, Fiscal 2016, Fiscal 2015, and Fiscal 2014, respectively.

GAAP AND NON-GAAP MEASURES

The discussion and analysis of Signet’s results of operations, financial condition and liquidity contained in this Annual Report on Form 10-K are based upon the consolidated financial statements of Signet which are prepared in accordance with US GAAP and should be read in conjunction with Signet’s financial statements and the related notes included in Item 8. A number of non-GAAP measures are used by management to analyze and manage the performance of the business, and the required disclosures for these non-GAAP measures are shown below.

Signet provides such non-GAAP information in reporting its financial results to give investors additional data to evaluate its operations. Management does not, nor does it suggest investors should, consider such non-GAAP measures in isolation from, or in substitution for, financial information prepared in accordance with GAAP.

1. Net Debt

Net debt is a non-GAAP measure defined as the total of cash and cash equivalents less loans, overdrafts and long-term debt. Management considers this metric to be helpful in understanding the total indebtedness of the Company after consideration of liquidity available from cash balances on-hand.

(in millions)	February 3, 2018			January 28, 2017			January 30, 2016
Cash and cash equivalents	$	225.1		$	98.7		$	137.7
Loans and overdrafts	(44.0		)	(91.1		)	(57.7		)
Long-term debt	(688.2		)	(1,317.9		)	(1,321.0		)
Net debt	$	(507.1	)	$	(1,310.3	)	$	(1,241.0	)

2. Return on Capital Employed Excluding Goodwill (“ROCE”)

ROCE is a non-GAAP measure calculated by dividing the 52 week annual operating income by the average quarterly capital employed and is expressed as a percentage. Capital employed includes accounts and other receivables, inventories, property, plant and equipment, other assets, accounts payable, accrued expenses and other current liabilities, other liabilities, deferred revenue and retirement benefit asset/obligation. This is a key performance indicator used by management for assessing the effective operation of the business and is considered a useful disclosure for investors as it provides a measure of the return on Signet’s operating assets. Further, this metric is utilized in evaluating management performance and incorporated into management’s long-term incentive plan metrics.

	Fiscal 2018		Fiscal 2017		Fiscal 2016		Fiscal 2015		Fiscal 2014
ROCE	19.1	%	21.4	%	21.0	%	19.5	%	25.2	%

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3. Free Cash Flow

Free cash flow is a non-GAAP measure defined as the net cash provided by operating activities less purchases of property, plant and equipment. Management considers that this is helpful in understanding how the business is generating cash from its operating and investing activities that can be used to meet the financing needs of the business. Free cash flow is an indicator used by management frequently in evaluating its overall liquidity and determining appropriate capital allocation strategies. Free cash flow does not represent the residual cash flow available for discretionary expenditure.

(in millions)	Fiscal 2018			Fiscal 2017			Fiscal 2016
Net cash provided by operating activities	$	1,940.5		$	678.3		$	443.3
Purchase of property, plant and equipment	(237.4		)	(278.0		)	(226.5		)
Free cash flow	$	1,703.1		$	400.3		$	216.8

4. Leverage Ratio

The leverage ratio is a non-GAAP measure calculated by dividing Signet’s adjusted debt by adjusted EBITDAR. Adjusted debt is a non-GAAP measure defined as debt recorded in the consolidated balance sheet, plus Series A redeemable convertible preferred shares, plus an adjustment for operating leases (5x annual rent expense). Prior to the termination of the asset-backed securitization in Fiscal 2018, this measure was also reduced by 70% of outstanding in-house finance receivables recorded in the consolidated balance sheet. Adjusted EBITDAR is a non-GAAP measure. Adjusted EBITDAR is defined as earnings before interest and income taxes, depreciation and amortization, and non-cash acquisition-related accounting adjustments (“Adjusted EBITDA”) and further excludes rent expense for properties occupied under operating leases. Prior to Fiscal 2018, this measure also excluded non-cash share-based compensation expense and the income statement impact of the finance receivables related to the in-house credit program. Adjusted EBITDA and Adjusted EBITDAR are considered important indicators of operating performance as they exclude the effects of financing and investing activities by eliminating the effects of interest, depreciation and amortization costs and accounting adjustments. Management believes these financial measures are helpful to enhancing investors’ ability to analyze trends in Signet’s business and evaluate Signet’s performance relative to other companies. Management also utilizes these metrics to evaluate its current credit profile, which is similar to rating agency methodologies.

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(in millions)	Fiscal 2018				Fiscal 2017			Fiscal 2016			Fiscal 2015			Fiscal 2014
Adjusted debt:
Long-term debt	$	688.2			$	1,317.9		$	1,321.0		$	1,354.3		$	—
Loans and overdrafts	44.0				91.1			57.7			95.7			19.3
Series A redeemable convertible preferred shares(1)	613.6				611.9			n/a			n/a			n/a
Adjustments:
5x Rent expense	2,640.5			(3)
8x Rent expense	*			(3)	4,195.2			4,205.6			3,703.2			2,589.6
70% of in-house credit program financing receivables	n/a				(1,269.3		)	(1,208.2		)	(1,087.0		)	(949.2		)
Adjusted debt	$	3,986.3			$	4,946.8		$	4,376.1		$	4,066.2		$	1,659.7
Adjusted EBITDAR:
Net income	$	519.3			$	543.2		$	467.9		$	381.3		$	368.0
Income taxes	7.9				170.6			189.9			159.3			198.5
Interest expense, net	52.7				49.4			45.9			36.0			4.0
Depreciation and amortization on property, plant and equipment(2)	194.1				175.0			161.4			140.4			110.2
Amortization of definite-lived intangibles(2)	9.3				13.8			13.9			9.3			—
Amortization of unfavorable leases and contracts	(13.0		)		(19.7		)	(28.7		)	(23.7		)	—
Other non-cash accounting adjustments	—				22.7			41.2			60.3			—
Adjusted EBITDA	$	770.3			$	955.0		$	891.5		$	762.9		$	680.7
Rent expense	528.1				524.4			525.7			462.9			323.7
Share-based compensation expense	*			(3)	8.0			16.4			12.1			14.4
Finance income from in-house credit program	n/a				(277.6		)	(252.5		)	(217.9		)	(186.4		)
Late charge income	n/a				(36.0		)	(33.9		)	(31.3		)	(29.4		)
Net bad debt expense	n/a				212.1			190.5			160.0			138.3
Adjusted EBITDAR	$	1,298.4			$	1,385.9		$	1,337.7		$	1,148.7		$	941.3
Adjusted Leverage ratio(4)	3.1x				3.6x			3.3x			3.5x			1.8x

⁽¹⁾  Series A redeemable convertible preferred shares were issued in October 2016.

⁽²⁾  Total amount of depreciation and amortization reflected on the consolidated statement of cash flows for Fiscal 2018, Fiscal 2017 and Fiscal 2016 equals $203.4 million, $188.8 million and $175.3 million, respectively, which includes $9.3 million, $13.8 million and $13.9 million, respectively, related to the amortization of definite-lived intangibles, primarily favorable leases and trade names.

⁽³⁾  Adjusted debt and adjusted EBITDA have been recalculated to align with methodologies commonly utilized by credit rating agencies and others in evaluating leverage.

⁽⁴⁾  Adjusted leverage ratio would have been as follows in the comparable periods if adjusted debt reflected 5x rent expense:

Fiscal 2017: 2.4x, Fiscal 2016: 2.1x, Fiscal 2015: 2.3x, and Fiscal 2014: 0.7x.

n/a Not applicable.

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

FORWARD-LOOKING STATEMENTS

This Annual Report on Form 10-K contains statements which are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, based upon management’s beliefs and expectations as well as on assumptions made by and data currently available to management, appear in a number of places throughout this Annual Report on Form 10-K and include statements regarding, among other things, Signet’s results of operation, financial condition, liquidity, prospects, growth, strategies and the industry in which Signet operates. The use of the words “expects,” “intends,” “anticipates,” “estimates,” “predicts,” “believes,” “should,” “potential,” “may,” “forecast,” “objective,” “plan,” or “target,” and other similar expressions are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to a number of risks and uncertainties, including but not limited to our ability to implement Signet's transformation initiative, the effect of federal tax reform and adjustments relating to such impact on the completion of our quarterly financial statements, changes in interpretation or assumptions, and/or updated regulatory guidance regarding the U.S. tax reform, the benefits and outsourcing of the credit portfolio sale including IT disruptions, future financial results and operating results, the timing and expected completion of the second phase of the credit outsourcing, the impact of weather-related incidents on Signet’s business, the benefits and integration of R2Net, general economic conditions, regulatory changes following the United Kingdom’s announcement to exit from the European Union, a decline in consumer spending, the merchandising, pricing and inventory policies followed by Signet, the reputation of Signet and its brands, the level of competition in the jewelry sector, the cost and availability of diamonds, gold and other precious metals, regulations relating to customer credit, seasonality of Signet’s business, financial market risks, deterioration in customers’ financial condition, exchange rate fluctuations, changes in Signet’s credit rating, changes in consumer attitudes regarding jewelry, management of social, ethical and environmental risks, the development and maintenance of Signet’s omni-channel retailing, security breaches and other disruptions to Signet’s information technology infrastructure and databases, inadequacy in and disruptions to internal controls and systems, changes in assumptions used in making accounting estimates relating to items such as extended service plans and pensions, risks related to Signet being a Bermuda corporation, the impact of the acquisition of Zale Corporation on relationships, including with employees, suppliers, customers and competitors, an adverse decision in legal or regulatory proceedings, and our ability to successfully integrate Zale Corporation’s operations and to realize synergies from the transaction.

For a discussion of these risks and other risks and uncertainties which could cause actual results to differ materially from those expressed in any forward looking statement, see Item 1A and elsewhere in this Annual Report on Form 10-K. Signet undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances, except as required by law.

GAAP AND NON-GAAP MEASURES

The following discussion and analysis of the results of operations, financial condition and liquidity is based upon the consolidated financial statements of Signet which are prepared in accordance with US GAAP. The following information should be read in conjunction with Signet’s financial statements and the related notes included in Item 8.

A number of non-GAAP measures are used by management to analyze and manage the performance of the business. See Item 6 for the required disclosures related to these measures. Signet provides such non-GAAP information in reporting its financial results to give investors additional data to evaluate its operations. The Company’s management does not, nor does it suggest investors should, consider such non-GAAP measures in isolation from, or in substitution for, financial information prepared in accordance with GAAP.

Exchange Translation Impact

The monthly average exchange rates are used to prepare the income statement and are calculated each month from the weekly average exchange rates weighted by sales. In Fiscal 2019, it is anticipated a five percent movement in the British pound to US dollar exchange rate would impact income before income taxes by approximately $2.0million, while a five percent movement in the Canadian dollar to US dollar exchange rate would have a negligible impact on income before income taxes.

Fiscal 2018 Overview

Similar to many other retailers, Signet follows the retail 4-4-5 reporting calendar, which included an extra week in the fourth quarter of Fiscal 2018 (the “53^rd week”). The 53^rd week added $84.3 million in net sales and increased diluted earnings per share by approximately $0.12 for both the quarter and Fiscal 2018.

Same store sales decreased 5.3% compared to a decrease of 1.9% in Fiscal 2017; total sales were down 2.4% to $6.3 billion compared to $6.4 billion in Fiscal 2017. Operating margin decreased 260 basis points to 9.3% compared to 11.9% in Fiscal 2017. Operating income decreased 24.0% to $579.9 million compared to $763.2 million in Fiscal 2017. Diluted earnings per share increased 5.1% to $7.44 compared to $7.08 in Fiscal 2017. Merchandise categories and collections were broadly lower, partially offset by e-commerce and Piercing Pagoda total sales increases.

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Signet’s long-term debt was $688.2 million at February 3, 2018 and $1.3 billion at January 28, 2017. Cash and cash equivalents were $225.1 million and $98.7 million, as of February 3, 2018 and January 28, 2017, respectively. During Fiscal 2018, Signet repurchased 8.1 million shares, which represented approximately 12% of the common shares outstanding, at an average cost of $56.91 per share.

Drivers of Operating Profitability

The key measures and drivers of operating profitability are:

• total sales - driven by the change in same store sales and net store selling space;

• gross margin - including the mix of results by store banner including brick-and-mortar locations and online;

• level of selling, general and administrative expenses; and

• other operating income, which primarily consists of finance income from the Company’s credit operations.

Same Store Sales

Same store sales growth is calculated by comparison of sales in stores that were open in both the current and the prior fiscal year. Sales from stores that have been open for less than 12 months, are excluded from the comparison until their 12-month anniversary. Sales after the 12-month anniversary are compared against the equivalent prior period sales within the comparable store sales comparison. Stores closed in the current financial period are included up to the date of closure and the comparative period is correspondingly adjusted. Stores that have been relocated or expanded, but remain within the same local geographic area, are included within the comparison with no adjustment to either the current or comparative period. Stores that have been refurbished are also included within the comparison except for the period when the refurbishment was taking place, when those stores are excluded from the comparison both for the current year and for the comparative period. Sales to employees are also excluded. Comparisons at divisional level are made in local currency and consolidated comparisons are made at constant exchange rates and exclude the effect of exchange rate movements by recalculating the prior period results as if they had been generated at the weighted average exchange rate for the current period. E-commerce sales are included in the calculation of same store sales for the period and the comparative figures from the anniversary of the launch of the relevant website. Same store sales exclude the 53^rd week in the fiscal year in which it occurs. Management considers same store sales useful as it is a major benchmark used by investors to judge performance within the retail industry.

Net Store Selling Space

	Sterling Jewelers division		Zale division		UK Jewelry division		Total Signet
Fiscal 2018
Openings	87		26		3		116
Closures	(89	)	(146	)	(7	)	(242	)
Net change in store selling space	1.3	%	(9.0	)%	(0.4	)%	(1.7	)%
Fiscal 2017
Openings	76		77		9		162
Closures	(28	)	(73	)	(4	)	(105	)
Net change in store selling space	4.3	%	(0.2	)%	1.0	%	2.6	%
Fiscal 2016
Openings	60		38		10		108
Closures	(24	)	(33	)	(5	)	(62	)
Net change in store selling space	5.0	%	0.5	%	1.5	%	3.3	%

Cost of Sales and Gross Margin

Cost of sales is mostly composed of merchandise costs (net of discounts and allowances). Cost of sales also contains:

• Occupancy costs such as rent, common area maintenance, depreciation and real estate tax.

• Net bad debt expense and customers’ late payments primarily under the in-house customer finance program.

• Store operating expenses such as utilities, displays and merchant credit costs.

• Distribution and warehousing costs including freight, processing, inventory shrinkage and related payroll.

As the classification of cost of sales or selling, general and administrative expenses varies from retailer to retailer and few retailers have in-house customer finance programs, Signet’s gross margin percentage may not be directly comparable to other retailers.

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Factors that influence gross margin include pricing, changes in merchandise costs (principally diamonds), changes in non-merchandise components of cost of sales (as described above), changes in sales mix, foreign exchange, gold and currency hedges and the economics of services such as repairs and extended service plans. The price of diamonds varies depending on their size, cut, color and clarity. At times, Signet uses gold and currency hedges to reduce its exposure to market volatility in the cost of gold and the pound sterling to the US dollar exchange rate, but it is not able to do so for diamonds. For gold and currencies, the hedging period can extend to 24 months, although the majority of hedge contracts will normally be for a maximum of 12 months.

The percentage mix of the merchandise cost component of cost of sales, based on US dollars, is as follows:

	Sterling Jewelers division		Zale division		UK Jewelry division		Total Signet
Fiscal 2018
Diamonds	54	%	35	%	16	%	45	%
Gold	13	%	15	%	15	%	14	%
All Other	33	%	50	%	69	%	41	%
Fiscal 2017
Diamonds	54	%	36	%	16	%	45	%
Gold	14	%	14	%	15	%	14	%
All Other	32	%	50	%	69	%	41	%

Signet uses an average cost inventory methodology and, as jewelry inventory turns slowly, the impact of movements in the cost of diamonds and gold takes time to be fully reflected in the gross margin. Signet’s inventory turns faster in the fourth quarter than in the other three quarters, therefore, changes in the cost of merchandise is more impactful on the gross margin in that quarter. Furthermore, Signet’s hedging activities result in movements in the purchase cost of merchandise taking some time before being reflected in the gross margin. An increase in inventory turn would accelerate the rate at which commodity costs impact gross margin.

Accounts receivable comprise a large volume of transactions with no one customer representing a significant balance. The net bad debt expense includes an estimate of the allowance for losses as of the balance sheet date. In the fourth quarter of Fiscal 2018, the Company began measuring delinquency under the contractual basis which aligns with the processes and collection strategies utilized by the Company’s third party credit service provider for the remaining in-house finance receivable portfolio beginning in October 2017. Under this measure of delinquency, credit card accounts are considered delinquent if the minimum payment is not received by the specified due date. The aging method is based on the number of completed billing cycles during which the customer has failed to make a minimum payment. Management utilizes the delinquency rates identified within the portfolio when calculating the overall allowance for the portfolio.

The overall allowance continues to be based on the Company’s historical loss experience and payment performance information for accounts with similar credit quality characteristics as the remaining portfolio since the inception of the in-house consumer financing program, which was operated under the Company’s aging and collection methodologies in place prior to October 2017. As a result of the credit transaction disclosed in Note 3 of Item 8, the aging and collection methodologies have been revised to align with contractual method, which may result in different customer payment behaviors. A 100% allowance is made for accounts associated with bankrupt or deceased cardholders, as well as for accounts more than 120 days past due on the contractual basis. The Company’s policy for charging off uncollectible receivables is 180 days.

A small portion of sales under the Zale banners are financed through our in-house customer programs but represent an immaterial amount of the Company’s credit sales, receivable balance, and bad debt expense.

Selling, General and Administrative Expense (“SGA”)

SGA expense primarily includes store staff and store administrative costs as well as advertising and promotional costs. It also includes field support center expenses such as information technology, in-house credit operations prior to the Company’s outsourcing initiatives and third-party servicing of receivables subsequent to the outsourcing initiative, finance, e-commerce and other operating expenses not specifically categorized elsewhere in the consolidated income statements.

The primary drivers of staffing costs are the number of full time equivalent employees and the level of compensation, taxes and other benefits paid. Management varies, on a store by store basis, the hours worked based on the expected level of selling activity, subject to minimum staffing levels required to operate the store. Non-store staffing levels are less variable. A significant element of compensation is performance based and is primarily dependent on sales and operating profit.

The level of advertising expenditure can vary. The largest element of advertising expenditure is national television advertising and is determined by management’s judgment of the appropriate level of advertising impressions and the cost of purchasing media.

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Other Operating Income

Other operating income is predominantly interest income arising from in-house customer finance provided to the customers of the Sterling Jewelers division. Its level is dependent on the rate of interest charged, the credit program selected by the customer and the level of outstanding balances. The level of outstanding balances is primarily dependent on the sales of the Sterling Jewelers division, the proportion of sales that use the in-house customer finance, as well as program mix and the monthly collection rate.

In October 2017, Signet, through its subsidiary Sterling Jewelers Inc., completed the sale of the prime-only credit quality portion of Sterling’s in-house finance receivable portfolio to Comenity. In addition, during March 2018, the Company announced that it entered a definitive agreement with CarVal Investors to sell all eligible non-prime in-house accounts receivable. Subsequent to these transactions, the Company expects a material reduction in the amount of interest income it recognizes. See Note 3 in Item 8 for further detail on the Company’s credit transactions.

Operating Income

To maintain current levels of operating income, Signet needs to achieve same store sales growth sufficient to offset any adverse movement in gross margin, any increase in operating costs, and any adverse changes in other operating income. Same store sales growth above the level required to offset the factors outlined above allows the business to achieve leverage of its cost base and improve operating income. Slower sales growth or a sales decline would normally result in reduced operating income. When foreseen, Signet may be able to reduce costs to help offset the impact of slow or negative sales growth. A key factor in driving operating income is the level of average sales per store, with higher productivity allowing leverage of expenses.

Results of Operations

	Fiscal 2018					Fiscal 2017					Fiscal 2016
(in millions)	$			% of sales		$			% of sales		$			% of sales
Sales	$	6,253.0		100.0	%	$	6,408.4		100.0	%	$	6,550.2		100.0	%
Cost of sales	(4,063.0		)	(65.0	)	(4,047.6		)	(63.2	)	(4,109.8		)	(62.7	)
Gross margin	2,190.0			35.0		2,360.8			36.8		2,440.4			37.3
Selling, general and administrative expenses	(1,872.2		)	(29.9	)	(1,880.2		)	(29.3	)	(1,987.6		)	(30.4	)
Credit transaction, net	1.3			—		—			—		—			—
Other operating income, net	260.8			4.2		282.6			4.4		250.9			3.8
Operating income	579.9			9.3		763.2			11.9		703.7			10.7
Interest expense, net	(52.7		)	(0.9	)	(49.4		)	(0.8	)	(45.9		)	(0.7	)
Income before income taxes	527.2			8.4		713.8			11.1		657.8			10.0
Income taxes	(7.9		)	(0.1	)	(170.6		)	(2.6	)	(189.9		)	(2.9	)
Net income	$	519.3		8.3	%	$	543.2		8.5	%	$	467.9		7.1	%

COMPARISON OF FISCAL 2018 TO FISCAL 2017

• Same store sales: down 5.3%.

• Diluted earnings per share: up 5.1% to $7.44.

In Fiscal 2018, Signet’s same store sales, which excluded the impact of the 53^rd week from its calculation, decreased by 5.3%, compared to a decrease of 1.9% in Fiscal 2017. Total sales were $6.3 billion compared to $6.4 billion in Fiscal 2017, down $155.4 million or 2.4% compared to a decrease of 2.2% in Fiscal 2017. Merchandise categories and collections were broadly lower, partially offset by e-commerce, Piercing Pagoda total sales increase, the benefit of the 53^rd week which contributed $84.3 million of sales and the addition of R2Net (acquired in September 2017) which contributed $88.1 million in sales for the year. E-commerce sales were $497.7 million and 8.0% of sales compared to $363.1 million and 5.7% of sales in Fiscal 2017.

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The breakdown of Signet’s sales performance is set out in the table below.

	Change from previous year
Fiscal 2018	Same store sales(1)		Non-same store sales, net		Impact of 53rd week on total sales		Total sales at constant exchange rate		Exchange translation impact		Total sales as reported		Total sales (in millions)
Sterling Jewelers division	(7.0	)%	3.0	%	1.2	%					(2.8	)%	$	3,820.5
Zale Jewelry	(1.9	)%	(2.2	)%	1.6	%	(2.5	)%	0.3	%	(2.2	)%	$	1,516.2
Piercing Pagoda	3.0	%	1.4	%	1.5	%					5.9	%	$	278.5
Zale division	(1.2	)%	(1.7	)%	1.6	%	(1.3	)%	0.3	%	(1.0	)%	$	1,794.7
UK Jewelry division	(6.0	)%	0.8	%	1.6	%	(3.6	)%	(1.1	)%	(4.7	)%	$	616.7
Other(2)											16.6	%	$	21.1
Signet	(5.3	)%	1.6	%	1.3	%	(2.4	)%	—	%	(2.4	)%	$	6,253.0

⁽¹⁾   Based on stores open for at least 12 months. E-commerce sales are included in the calculation of same store sales for the period and comparative figures from the anniversary of the launch of the relevant website. The Sterling Jewelers division includes R2Net sales for the 145 days since the date of acquisition.

⁽²⁾     Includes sales from Signet’s diamond sourcing initiative.

Sterling Jewelers sales

In Fiscal 2018, Sterling Jewelers total sales were $3,820.5 million, down 2.8%, compared to $3,930.4 million in Fiscal 2017, and same store sales decreased 7.0% compared to a decrease of 2.6% in Fiscal 2017. Fiscal 2018 sales were driven by weakness in bridal in Kay and Jared, including lower year over year sales of the Ever Us collection. The decrease in bridal was disproportionately affected by systems and process disruptions associated with the outsourcing of credit services. Sterling Jewelers’ average merchandise transaction value (“ATV”) increased 3.1%, while the number of transactions decreased 10.9%. These results were driven by relatively stronger sales of higher-priced diamond jewelry collections.

	Changes from previous year
Fiscal 2018	Same store sales(1)		Non-same store sales, net		Impact of 53rd week on total sales		Total sales as reported		Total sales (in millions)
Kay	(8.0	)%	2.5	%	1.1	%	(4.4	)%	$	2,428.1
Jared(2)	(5.5	)%	1.1	%	1.5	%	(2.9	)%	$	1,192.1
R2Net(3)	29.9	%							$	88.1
Regional brands	(19.8	)%	(12.2	)%	0.7	%	(31.3	)%	$	112.2
Sterling Jewelers division	(7.0	)%	3.0	%	1.2	%	(2.8	)%	$	3,820.5

⁽¹⁾  Based on stores open for at least 12 months. E-commerce sales are included in the calculation of same store sales for the period and comparative figures from the anniversary of the launch of the relevant website.

⁽²⁾  Includes smaller concept Jared stores such as Jared Vault and Jared Jewelry Boutique.

⁽³⁾  Includes R2Net sales for the 145 day period since the date of acquisition. Same store sales presented for R2Net to provide comparative performance measure.

	Average Merchandise Transaction Value(1)(2)								Merchandise Transactions
	Average Value				Change from previous year				Change from previous year
Fiscal Year	Fiscal 2018		Fiscal 2017		Fiscal 2018		Fiscal 2017		Fiscal 2018		Fiscal 2017
Kay	$	466	$	458	1.5	%	6.5	%	(10.2	)%	(8.4	)%
Jared	$	594	$	556	6.1	%	(0.4	)%	(11.0	)%	(5.1	)%
Regional brands	$	484	$	454	4.3	%	6.6	%	(23.4	)%	(15.9	)%
Sterling Jewelers division	$	502	$	485	3.1	%	4.5	%	(10.9	)%	(7.9	)%

⁽¹⁾    Average merchandise transaction value is defined as net merchandise sales on a same store basis divided by the total number of customer transactions.

⁽²⁾  Net merchandise sales include all merchandise product sales, net of discounts and returns. In addition, excluded from net merchandise sales are sales tax in the US, repairs, warranty, insurance, employee and other miscellaneous sales.

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Zale division sales

The Zale division’s Fiscal 2018 sales were $1,794.7 million compared to $1,812.8 million in Fiscal 2017. Zale Jewelry contributed $1,516.2 million and Piercing Pagoda contributed $278.5 million of revenues, compared to $1,549.7 million and $263.1 million, respectively, in the prior year. Same store sales decreased 1.2% compared to a decrease of 1.2% in Fiscal 2017. Sales reflected strength in diamond fashion jewelry, most notably in the Disney Enchanted and Vera Wang Love collections offset by weakness in bridal and beads which helped drive an ATV increase of 3.2%. Piercing Pagoda ATV increased 8.6%, while the number of transactions decreased 5.0% due to improved performance of gold fashion jewelery.

	Change from previous year
Fiscal 2018	Same store sales(1)		Non-same store sales, net		Impact of 53rd week on total sales		Total sales at constant exchange rate		Exchange translation impact		Total sales as reported		Total sales (in millions)
Zales	(2.0	)%	(0.6	)%	1.6	%					(1.0	)%	$	1,244.3
Gordon’s	(15.9	)%	(21.3	)%	1.0	%					(36.2	)%	$	36.8
Zale US Jewelry	(2.5	)%	(1.7	)%	1.6	%					(2.6	)%	$	1,281.1
Peoples	2.6	%	(1.7	)%	1.7	%	2.6	%	2.5	%	5.1	%	$	215.4
Mappins	(10.8	)%	(25.5	)%	0.9	%	(35.4	)%	1.7	%	(33.7	)%	$	19.7
Zale Canada Jewelry	1.3	%	(5.1	)%	1.6	%	(2.2	)%	2.4	%	0.2	%	$	235.1
Total Zale Jewelry	(1.9	)%	(2.2	)%	1.6	%	(2.5	)%	0.3	%	(2.2	)%	$	1,516.2
Piercing Pagoda	3.0	%	1.4	%	1.5	%					5.9	%	$	278.5
Zale division	(1.2	)%	(1.7	)%	1.6	%	(1.3	)%	0.3	%	(1.0	)%	$	1,794.7

⁽¹⁾   Based on stores open for at least 12 months. E-commerce sales are included in the calculation of same store sales for the period and comparative figures from the anniversary of the launch of the relevant website.

	Average Merchandise Transaction Value(1)(2)								Merchandise Transactions
	Average Value				Change from previous year				Change from previous year
Fiscal Year	Fiscal 2018		Fiscal 2017		Fiscal 2018		Fiscal 2017		Fiscal 2018		Fiscal 2017
Zales	$	470	$	460	2.0	%	2.0	%	(4.3	)%	(3.2	)%
Gordon’s	$	479	$	435	8.1	%	1.2	%	(19.6	)%	(13.1	)%
Peoples(3)	$	429	$	401	5.4	%	6.6	%	(3.7	)%	(10.9	)%
Mappins(3)	$	371	$	347	(1.6	)%	4.5	%	(8.7	)%	(8.4	)%
Total Zale Jewelry	$	440	$	424	2.3	%	3.4	%	(4.7	)%	(5.3	)%
Piercing Pagoda	$	63	$	58	8.6	%	13.7	%	(5.0	)%	(6.2	)%
Zale division	$	224	$	217	3.2	%	5.3	%	(4.9	)%	(5.8	)%

⁽¹⁾    Average merchandise transaction value is defined as net merchandise sales on a same store basis divided by the total number of customer transactions.

⁽²⁾  Net merchandise sales include all merchandise product sales net of discounts and returns. In addition, excluded from net merchandise sales are repairs, warranty, insurance, employee and other miscellaneous sales.

⁽³⁾  Amounts for Zale Canada Jewelry stores are denominated in Canadian dollars.

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UK Jewelry sales

In Fiscal 2018, the UK Jewelry division’s total sales were $616.7 million, down 4.7%, compared to $647.1 million in Fiscal 2017. Sales declines were due principally to bridal and diamond fashion jewelry partially offset by higher sales in select prestige watch brands and strength in e-commerce. Same store sales decreased by 6.0% compared to an increase of 0.1% in Fiscal 2017. ATV increased 9.7%, offset by a 14.7% decrease in the number of transactions.

	Change from previous year
Fiscal 2018	Same store sales(1)		Non-same store sales, net		Impact of 53rd week on total sales		Total sales at constant exchange rate		Exchange translation impact		Total sales as reported		Total sales (in millions)
H.Samuel	(6.5	)%	0.6	%	1.6	%	(4.3	)%	(0.9	)%	(5.2	)%	$	306.7
Ernest Jones	(5.6	)%	1.1	%	1.6	%	(2.9	)%	(1.3	)%	(4.2	)%	$	310.0
UK Jewelry division	(6.0	)%	0.8	%	1.6	%	(3.6	)%	(1.1	)%	(4.7	)%	$	616.7

⁽¹⁾   Based on stores open for at least 12 months. E-commerce sales are included in the calculation of same store sales for the period and comparative figures from the anniversary of the launch of the relevant website.

	Average Merchandise Transaction Value(1)(2)								Merchandise Transactions
	Average Value				Change from previous year				Change from previous year
Fiscal Year	Fiscal 2018		Fiscal 2017		Fiscal 2018		Fiscal 2017		Fiscal 2018		Fiscal 2017
H.Samuel	£	84	£	77	9.1	%	2.7	%	(14.4	)%	(4.9	)%
Ernest Jones	£	349	£	309	12.2	%	14.0	%	(15.8	)%	(11.3	)%
UK Jewelry division	£	136	£	124	9.7	%	6.0	%	(14.7	)%	(6.3	)%

⁽¹⁾    Average merchandise transaction value is defined as net merchandise sales on a same store basis divided by the total number of customer transactions.

⁽²⁾  Net merchandise sales include all merchandise product sales, including value added tax (“VAT”), net of discounts and returns. In addition, excluded from net merchandise sales are repairs, warranty, insurance, employee and other miscellaneous sales.

Fourth Quarter Sales

In the fourth quarter, Signet’s total sales were $2,293.1 million, down $23.2 million or 1.0%, compared to a decrease of 5.1% in the prior year fourth quarter. Same store sales were down 5.2% compared to a decrease of 4.5% in the prior year fourth quarter. The total sales increase was driven by the 14^th week in sales, which contributed $84.3 million of sales, as well as the addition of R2Net which contributed $64.4 million in sales in the quarter, offset by the year-over-year decline in base same store sales. E-commerce sales in the fourth quarter were $253.8 million or 11.1% of total sales, compared to $161.8 million or 7.1% of total sales in the prior year fourth quarter. The breakdown of the sales performance is set out in the table below.

	Change from previous year
Fourth quarter of Fiscal 2018	Same store sales(1)		Non-same store sales, net		Impact of 14th week on total sales		Total sales at constant exchange rate		Exchange translation impact		Total sales as reported		Total sales (in millions)
Sterling Jewelers division	(8.6	)%	4.2	%	3.3	%					(1.1	)%	$	1,382.7
Zale Jewelry	4.3	%	(4.6	)%	4.4	%	4.1	%	0.9	%	5.0	%	$	582.5
Piercing Pagoda	4.6	%	(0.6	)%	4.8	%					8.8	%	$	91.1
Zale division	4.4	%	(4.2	)%	4.5	%	4.7	%	0.8	%	5.5	%	$	673.6
UK Jewelry division	(9.2	)%	(0.2	)%	4.2	%	(5.2	)%	8.0	%	2.8	%	$	233.9
Other(2)											(48.2	)%	$	2.9
Signet	(5.2	)%	1.5	%	3.7	%	—	%	1.0	%	1.0	%	$	2,293.1

⁽¹⁾   Based on stores open for at least 12 months. E-commerce sales are included in the calculation of same store sales for the period and comparative figures from the anniversary of the launch of the relevant website.

⁽²⁾     Includes sales from Signet’s diamond sourcing initiative.

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Sterling Jewelers sales

In the fourth quarter, the Sterling Jewelers division’s total sales were $1,382.7 million compared to $1,398.1 million in the prior year fourth quarter, a decline of 1.1%. Same store sales decreased 8.6%, compared to a decrease of 4.9% in the prior year fourth quarter. Approximately 500 bps of the same store sales decline was a result of the credit outsourcing transition, most notably in sales of bridal merchandise. While both Kay and Jared experienced issues related to the credit transition, impacts were more pronounced at Kay, where a greater percentage of customers utilize in-store credit for bridal purchases. In addition to credit transition issues, Sterling sales were driven by less effective promotional spending and lower sales of the Ever Us collection partially offset by the success of the Chosen collection at Jared. Sterling Jewelers’ ATV increased 1.7% and the number of transactions decreased 12.8%. ATV increased driven by mix with particular strength in higher-value diamond jewelry.

	Change from previous year
Fourth quarter of Fiscal 2018	Same store sales(1)		Non-same store sales, net		Impact of 14th week on total sales		Total sales as reported		Total sales (in millions)
Kay	(11.0	)%	2.1	%	3.1	%	(5.8	)%	$	862.0
Jared(2)	(6.4	)%	0.8	%	4.2	%	(1.4	)%	$	424.5
R2Net	35.0	%							$	64.4
Regional brands	(27.9	)%	(13.4	)%	2.1	%	(39.2	)%	$	31.8
Sterling Jewelers division	(8.6	)%	4.2	%	3.3	%	(1.1	)%	$	1,382.7

⁽¹⁾  Based on stores open for at least 12 months. E-commerce sales are included in the calculation of same store sales for the period and comparative figures from the anniversary of the launch of the relevant website.

⁽²⁾    Includes smaller concept Jared stores such as Jared Vault and Jared Jewelry Boutique.

	Average Merchandise Transaction Value(1)(2)								Merchandise Transactions
	Average Value				Change from previous year				Change from previous year
Fourth quarter	Fiscal 2018		Fiscal 2017		Fiscal 2018		Fiscal 2017		Fiscal 2018		Fiscal 2017
Kay	$	438	$	429	1.2	%	6.5	%	(13.8	)%	(10.8	)%
Jared	$	546	$	530	1.9	%	7.7	%	(8.4	)%	(10.8	)%
Regional brands	$	447	$	431	(0.2	)%	9.7	%	(28.0	)%	(23.3	)%
Sterling Jewelers division	$	469	$	457	1.7	%	7.0	%	(12.8	)%	(11.4	)%

⁽¹⁾     Average merchandise transaction value is defined as net merchandise sales on a same store basis divided by the total number of customer transactions.

⁽²⁾   Net merchandise sales include all merchandise product sales, net of discounts and returns. In addition, excluded from net merchandise sales are sales tax in the US, repairs, warranty, insurance, employee and other miscellaneous sales.

Zale sales

In the fourth quarter, the Zale division’s total sales were $673.6 million compared to $638.6 million in the prior year fourth quarter, up 5.5%. Same store sales increased 4.4%, compared to a decrease of 3.9% in the prior year fourth quarter.

Zale Jewelry contributed $582.5 million of sales, an increase of 5.0% from the prior year fourth quarter sales. Same store sales increased by 4.3% compared to a decrease of 5.2% in prior year fourth quarter, driven by the new Enchanted Disney collections, line extensions in Vera Wang Love and an improved selection of solitaires and fancy cut diamonds. Zale Jewelry ATV increased 3.8%, while the number of transactions increased 1.1%.

Piercing Pagoda contributed $91.1 million of sales, an increase of 8.8% over prior year fourth quarter sales. Piercing Pagoda same store sales increased 4.6% compared to an increase of 5.7% in prior year fourth quarter. Piercing Pagoda ATV increased 8.1% principally driven by strong sales of chains and charms, while the number of transactions decreased 2.6%.

47

	Change from previous year
Fourth quarter of Fiscal 2018	Same store sales(1)		Non-same store sales, net		Impact of 14th week on total sales		Total sales at constant exchange rate		Exchange translation impact		Total sales as reported		Total sales (in millions)
Zales	5.1	%	(2.8	)%	4.5	%					6.8	%	$	483.2
Gordon’s	(9.7	)%	(28.0	)%	3.5	%					(34.2	)%	$	12.3
Zale US Jewelry	4.7	%	(3.9	)%	4.4	%					5.2	%	$	495.5
Peoples	3.8	%	(3.5	)%	4.6	%	4.9	%	5.6	%	10.5	%	$	80.9
Mappins	(12.5	)%	(35.6	)%	3.1	%	(45.0	)%	3.1	%	(41.9	)%	$	6.1
Zale Canada Jewelry	2.5	%	(8.4	)%	4.5	%	(1.4	)%	5.3	%	3.9	%	$	87.0
Total Zale Jewelry	4.3	%	(4.6	)%	4.4	%	4.1	%	0.9	%	5.0	%	$	582.5
Piercing Pagoda	4.6	%	(0.6	)%	4.8	%					8.8	%	$	91.1
Zale division	4.4	%	(4.2	)%	4.5	%	4.7	%	0.8	%	5.5	%	$	673.6

⁽¹⁾   Based on stores open for at least 12 months. E-commerce sales are included in the calculation of same store sales for the period and comparative figures from the anniversary of the launch of the relevant website.

	Average Merchandise Transaction Value(1)(2)								Merchandise Transactions
	Average Value				Change from previous year				Change from previous year
Fourth quarter	Fiscal 2018		Fiscal 2017		Fiscal 2018		Fiscal 2017		Fiscal 2018		Fiscal 2017
Zales	$	436	$	421	3.6	%	0.7	%	2.4	%	(5.1	)%
Gordon’s	$	464	$	405	12.9	%	1.5	%	(19.3	)%	(14.5	)%
Peoples(3)	$	395	$	367	5.9	%	6.1	%	(1.7	)%	(13.4	)%
Mappins(3)	$	342	$	328	(6.8	)%	10.4	%	(6.9	)%	(12.9	)%
Total Zale Jewelry	$	410	$	387	3.8	%	2.4	%	1.1	%	(7.4	)%
Piercing Pagoda	$	67	$	62	8.1	%	12.7	%	(2.6	)%	(5.6	)%
Zale division	$	241	$	227	5.7	%	2.7	%	(0.8	)%	(6.5	)%

⁽¹⁾    Average merchandise transaction value is defined as net merchandise sales on a same store basis divided by the total number of customer transactions.

⁽²⁾  Net merchandise sales include all merchandise product sales net of discounts and returns. In addition, excluded from net merchandise sales are repairs, warranty, insurance, employee and other miscellaneous sales.

⁽³⁾  Amounts for Zale Canada Jewelry stores are denominated in Canadian dollars.

UK Jewelry sales

In the fourth quarter, the UK Jewelry division’s total sales were up by 2.8% to $233.9 million compared to $227.6 million in the prior year fourth quarter. Same store sales decreased 9.2% compared to a decrease of 3.8% in the prior year fourth quarter due principally to diamond and fashion jewelry, partially offset by higher sales in select prestige watch brands and strength in e-commerce. Average merchandise transaction value increased 6.6% and the number of transactions decreased 15.2%.

	Change from previous year
Fourth quarter of Fiscal 2018	Same store sales(1)		Non-same store sales, net		Impact of 14th week on total sales		Total sales at constant exchange rate		Exchange translation impact		Total sales as reported		Total sales (in millions)
H.Samuel	(9.2	)%	(0.3	)%	3.9	%	(5.6	)%	7.8	%	2.2	%	$	122.3
Ernest Jones(2)	(9.3	)%	0.2	%	4.5	%	(4.6	)%	8.0	%	3.4	%	$	111.6
UK Jewelry division	(9.2	)%	(0.2	)%	4.2	%	(5.2	)%	8.0	%	2.8	%	$	233.9

⁽¹⁾  Based on stores open for at least 12 months. E-commerce sales are included in the calculation of same store sales for the period and comparative figures from the anniversary of the launch of the relevant website.

⁽²⁾    Includes stores selling under the Leslie Davis nameplate.

48

	Average Merchandise Transaction Value(1)(2)								Merchandise Transactions
	Average Value				Change from previous year				Change from previous year
Fourth quarter	Fiscal 2018		Fiscal 2017		Fiscal 2018		Fiscal 2017		Fiscal 2018		Fiscal 2017
H.Samuel	£	84	£	78	7.7	%	4.0	%	(15.6	)%	(10.3	)%
Ernest Jones(3)	£	315	£	299	4.7	%	18.2	%	(13.5	)%	(17.5	)%
UK Jewelry division	£	129	£	121	6.6	%	8.0	%	(15.2	)%	(11.8	)%

⁽¹⁾     Average merchandise transaction value is defined as net merchandise sales on a same store basis divided by the total number of customer transactions.

⁽²⁾   Net merchandise sales include all merchandise product sales, including value added tax (“VAT”), net of discounts and returns. In addition, excluded from net merchandise sales are repairs, warranty, insurance, employee and other miscellaneous sales.

⁽³⁾    Includes stores selling under the Leslie Davis nameplate.

Cost of Sales and Gross Margin

In Fiscal 2018, gross margin was $2,190.0 million or 35.0% of sales compared to $2,360.8 million or 36.8% of sales in Fiscal 2017. The decrease in gross margin dollars was attributable to a decline in the gross merchandise margin rate and de-leverage on store occupancy costs.

• The Sterling Jewelers division gross margin dollars decreased $138.2 million compared to Fiscal 2017, reflecting gross margin rate decrease of 250 basis points, of which 50 basis points is attributable to the inclusion of R2Net. In addition to the impact of R2Net, the decline in gross margin was due to the de-leverage on fixed costs and higher costs associated with disposition of inventory in part due to distribution center consolidation.

• In the Zale division, gross margin dollars decreased $12.7 million compared to Fiscal 2017 and the rate declined 40 basis points, primarily attributable to de-leverage on store occupancy costs. This was offset by an increase in the gross merchandise margin rate primarily due to merchandise mix.

• In the UK Jewelry division, gross margin dollars decreased $19.7 million compared to Fiscal 2017, reflecting gross margin rate decrease of 170 basis points. The decreases in dollars and rate were driven principally by lower sales volumes, a decline in the gross merchandise margin rate due to promotions and mix and de-leverage on store occupancy costs.

In the fourth quarter, the consolidated gross margin was $919.8 million or 40.1% of sales compared to $945.5 million or 41.7% of sales in the prior year fourth quarter. The declines in the consolidated gross margin was driven principally by a negative 70 basis point impact related to R2Net, which carries a lower gross margin rate, lower sales, leading to de-leverage on fixed costs and merchandise mix.

• Sterling Jewelers gross margin decreased $36.7 million. The gross margin rate declined 220 basis points, of which 120 basis points is attributed to the inclusion of R2Net. The remainder of the rate decline is primarily due to de-leverage of fixed costs offset in part by a higher gross merchandise margin rate. Net bad debt expense had no material impact on the gross margin rate.

• Zale Division gross margin increased by $14.0 million. The gross margin rate decreased by 10 basis points, driven primarily by higher sales leading to leverage on fixed costs, partially offset by a decline in gross merchandise margin rate due to merchandise mix.

• Gross margin dollars in the UK Jewelry Division decreased $3.3 million. The gross margin rate declined by 240 basis points due to lower sales leading to de-leverage on fixed costs.

Selling, General and Administrative Expenses

Selling, general and administrative expenses for Fiscal 2018 were $1,872.2 million or 29.9% of sales compared to $1,880.2 million or 29.3% of sales in Fiscal 2017, down $8.0 million. The decrease was attributable to decreased store staff costs and advertising expense partially offset by increased central costs. The increase in central costs was primarily driven by the inclusion of the 53^rd week which added $30.5 million of expense, an additional $16.2 million of selling, general and administrative expense related to R2Net and other one-time costs of $12.0 million related to CEO separation and the R2Net acquisition.

In the fourth quarter, SGA expense was $634.5 million or 27.7% of sales compared to $615.3 million or 27.1% of sales in the prior year fourth quarter. The increase in expense was primarily driven by the inclusion of the 14^th week in the quarter which added $30.5 million of expense and credit outsourcing costs of $21.0 million partially offset by savings of $25.0 million related to in-house credit operations, as well as lower advertising expense and store labor costs.

Other Operating Income, Net

In Fiscal 2018, other operating income, net was $260.8 million or 4.2% of sales compared to $282.6 million or 4.4% of sales in Fiscal 2017. In the fourth quarter, other operating income, net was $39.5 million or 1.7% of sales compared to $69.0 million or 3.0% of sales in the prior year fourth quarter. The year-over-year decrease was primarily attributable to the 53^rd week which added $1.3 million of other income offset by $28.0 million in other expense related to the sale of the prime-only credit quality portion of Sterling’s in-house finance receivable portfolio during the third quarter of Fiscal 2018.

49

Operating Income

In Fiscal 2018, operating income was $579.9 million or 9.3% of sales compared to $763.2 million or 11.9% of sales in Fiscal 2017. The year-over-year decrease was primarily attributable to a decrease in sales volumes and the impact of the credit outsourcing transaction during the third quarter of Fiscal 2018.

	Fiscal 2018						Fiscal 2017
(in millions)	$				% of sales		$			% of sales
Sterling Jewelers division	$	576.0			15.1	%	$	715.8		18.2	%
Zale division(1)	80.1				4.5	%	73.4			4.0	%
UK Jewelry division	33.1				5.4	%	45.6			7.0	%
Other(2)	(109.3		)	(2)	nm		(71.6		)	nm
Operating income	$	579.9			9.3	%	$	763.2		11.9	%

⁽¹⁾  The Zale division operating income included $66.7 million from Zale Jewelry or 4.4% of sales and $13.4 million from Piercing Pagoda or 4.8% of sales. In the prior year, the Zale division operating income included $62.2 million from Zale Jewelry or 4.0% of sales and $11.2 million from Piercing Pagoda or 4.3% of sales.

⁽²⁾  Other includes $29.6 million of transaction costs related to the credit transaction, $8.6 million of R2Net acquisition costs, and $3.4 million of CEO transition costs. See Note 3 and Note 4 of Item 8 for additional information regarding the credit transaction and R2Net acquisition, respectively.

nm Not meaningful.

In the fourth quarter, operating income was $323.5 million or 14.1% of sales compared to $399.2 million or 17.6% of sales in prior year fourth quarter. The decline was driven by de-leverage of fixed costs due to sales declines, the impact of the credit outsourcing transaction and de-leverage related to R2Net, which carries a lower operating margin rate. The credit outsourcing transaction (excluding the sales impact of credit transition) reduced operating income by $21.0 million in the quarter primarily due to the loss of interest income. 

	Fourth Quarter Fiscal 2018					Fourth Quarter Fiscal 2017
(in millions)	$			% of sales		$			% of sales
Sterling Jewelers division	$	213.4		15.4	%	$	298.0		21.3	%
Zale division(1)	92.5			13.7	%	71.7			11.2	%
UK Jewelry division	35.0			15.0	%	42.6			18.7	%
Other	(17.4		)	nm		(13.1		)	nm
Operating income	$	323.5		14.1	%	$	399.2		17.6	%

⁽¹⁾  The Zale division operating income included $79.1 million from Zale Jewelry or 11.5% of sales and $13.4 million from Piercing Pagoda or 14.7% of sales. In the prior year fourth quarter, the Zale division operating income included $62.7 million from Zale Jewelry or 11.3% of sales and $9.0 million from Piercing Pagoda or 10.8% of sales.

nm Not meaningful.

Interest Expense, Net

In Fiscal 2018, net interest expense was $52.7 million compared to $49.4 million in Fiscal 2017. The weighted average interest rate for the Company’s debt outstanding was 3.2% compared to 2.8% in the prior year. The increase in expense relates to additional interest incurred under the unsecured term loan entered into by Signet to finance the R2Net acquisition transaction (the “bridge loan”), partially offset by a reduction in interest related to the settlement of the Company’s asset-backed securitization facility, which was terminated in the third quarter of Fiscal 2018. See Item 8 for additional information related to the loans and long-term debt (Note 21).

In the fourth quarter, net interest expense was $10.0 million compared to $13.0 million in the prior year fourth quarter. The weighted average interest rate for the Company’s debt outstanding was 3.6% compared to 2.9% in the prior year fourth quarter. The decrease in expense relates to a reduction in interest related to the settlement of the Company’s asset-backed securitization facility, which was terminated in the third quarter of Fiscal 2018.

Income Before Income Taxes

In Fiscal 2018, income before income taxes decreased $186.6 million to $527.2 million or 8.4% of sales compared to $713.8 million or 11.1% of sales in Fiscal 2017.

In the fourth quarter, income before income taxes decreased $72.7 million to $313.5 million or 13.7% of sales compared to $386.2 million or 17.0% of sales in the prior year fourth quarter.

50

Income Taxes

Income tax expense for Fiscal 2018 was $7.9 million compared to $170.6 million in Fiscal 2017, with an effective tax rate of 1.5% for Fiscal 2018 compared to 23.9% in Fiscal 2017. In the fourth quarter, income tax benefit was $37.8 million compared to expense of $88.7 million in the prior year fourth quarter. The lower effective tax rate in Fiscal 2018 was driven principally by the favorable impact of the Tax Cuts and Jobs Act in the United States and the pre-tax earnings mix by jurisdiction. Revaluation of net deferred tax liabilities due to the Tax Cuts and Jobs Act resulted in a one-time non-cash benefit of $64.7 million in the quarter.

On December 22, 2017, the U.S. government enacted “An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018,” which is commonly referred to as “The Tax Cuts and Jobs Act” (the “TCJ Act”). The TCJ Act provides for comprehensive tax legislation which significantly modifies the U.S. corporate income tax system. Due to the timing of the enactment and the complexity involved in applying the provisions of the TCJ Act, we have made reasonable estimates of its effects and recorded provisional amounts for the year ended February 3, 2018, consistent with applicable SEC guidance.

The results for the fourth quarter and full year Fiscal 2018 include a net benefit of $86.2 million related to provisional estimates resulting directly from the TCJ Act. Within our calculations of the income tax effects of the TCJ Act, we used assumptions and estimates that may change as a result of future guidance and interpretation from the Internal Revenue Service, the SEC, the Financial Accounting Standards Board and/or various other taxing jurisdictions. In particular, we anticipate that the U.S. state jurisdictions will continue to determine and announce their conformity or decoupling from the Act, either in its entirety or with respect to specific provisions. All of these potential legislative and interpretive actions could result in adjustments to any of the provisional estimates when the accounting for the income tax effects of the TCJ Act is completed.

We anticipate that the effective tax rate in 2019 and in future years will be favorably impacted by the lower federal statutory corporate tax rate of 21.0 percent offset by limitations of certain deductions and the base broadening changes. See Note 10 of Item 8 for additional information regarding the Company’s income taxes and the impact of the TCJ Act.

Net Income

Net income for Fiscal 2018 was down 4.4% to $519.3 million or 8.3% of sales compared to $543.2 million or 8.5% of sales in Fiscal 2017.

For the fourth quarter, net income was up 18.1% to $351.3 million or 15.3% of sales compared to $297.5 million or 13.1% of sales in the prior year fourth quarter.

Earnings per Share

For Fiscal 2018, diluted earnings per share were $7.44 compared to $7.08 in Fiscal 2017, an increase of 5.1%. Earnings per share in Fiscal 2018 includes $0.93 related to the impact of revaluation on deferred taxes under the Tax Cuts and Jobs Act. The weighted average diluted number of common shares outstanding was 69.8 million compared to 76.7 million in Fiscal 2017. Signet repurchased 8.1 million shares in Fiscal 2018 compared to 11.2 million shares in Fiscal 2017.

For the fourth quarter, diluted earnings per share were $5.24 compared to $3.92 in the prior year fourth quarter, up 33.7%. Earnings per share in the fourth quarter of Fiscal 2018 includes $0.96 related to the impact of revaluation on deferred taxes under the Tax Cuts and Jobs Act. The weighted average diluted number of common shares outstanding was 67.0 million compared to 75.8 million in the prior year fourth quarter.

The Company issued preferred shares on October 5, 2016, which include a cumulative dividend right and may be converted into common shares. The Company’s computation of diluted earnings per share includes the effect of potential common shares for outstanding awards issued under the Company’s share-based compensation plans and preferred shares upon conversion, if dilutive. In computing diluted EPS, the Company also adjusts the numerator used in the basic EPS computation, subject to anti-dilution requirements, to add back the dividends (declared or cumulative undeclared) applicable to the preferred shares. For the fourth quarter and year to date periods, the preferred shares were more dilutive if conversion was assumed. See Item 8 for additional information related to the preferred shares (Note 6) or the calculation of earnings per share (Note 8).

Dividends per Common Share

In Fiscal 2018, dividends of $1.24 were declared by the Board of Directors compared to $1.04 in Fiscal 2017.

COMPARISON OF FISCAL 2017 TO FISCAL 2016

• Same store sales: down 1.9%.

• Operating income: up 8.5% to $763.2 million.

• Operating margin: increased to 11.9%, up 120 basis points.

• Diluted earnings per share: up 20.6% to $7.08.

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In Fiscal 2017, Signet’s same store sales decreased by 1.9%, compared to an increase of 4.1% in Fiscal 2016. Total sales were $6,408.4 million compared to $6,550.2 million in Fiscal 2016, down $141.8 million or 2.2% compared to an increase of 14.2% in Fiscal 2016. Merchandise categories and collections were broadly lower most notably in the mall selling channel, while select merchandise and selling channels performed relatively well, such as diamond fashion jewelry, bracelets, earrings, and the off-mall and kiosk selling channels. E-commerce sales were $363.1 million and 5.7% of sales compared to $359.6 million and 5.5% of sales in Fiscal 2016. The breakdown of Signet’s sales performance is set out in the table below.

	Change from previous year
Fiscal 2017	Same store sales(1)		Non-same store sales, net(2)		Total sales at constant exchange rate		Exchange translation impact		Total sales as reported		Total sales (in millions)
Sterling Jewelers division	(2.6	)%	1.1	%	(1.5	)%	—	%	(1.5	)%	$	3,930.4
Zale Jewelry	(2.4	)%	1.4	%	(1.0	)%	(0.2	)%	(1.2	)%	$	1,549.7
Piercing Pagoda	6.6	%	1.6	%	8.2	%	—	%	8.2	%	$	263.1
Zale division	(1.2	)%	1.4	%	0.2	%	(0.1	)%	0.1	%	$	1,812.8
UK Jewelry division	0.1	%	0.8	%	0.9	%	(13.2	)%	(12.3	)%	$	647.1
Other(3)									44.8	%	$	18.1
Signet	(1.9	)%	1.2	%	(0.7	)%	(1.5	)%	(2.2	)%	$	6,408.4

⁽¹⁾   Based on stores open for at least 12 months. E-commerce sales are included in the calculation of same store sales for the period and comparative figures from the anniversary of the launch of the relevant website.

⁽²⁾    Includes all sales from stores not open for 12 months.

⁽³⁾     Includes sales from Signet’s diamond sourcing initiative.

Sterling Jewelers sales

In Fiscal 2017, Sterling Jewelers total sales were $3,930.4 million, down 1.5%, compared to $3,988.7 million in Fiscal 2016, and same store sales decreased 2.6% compared to an increase of 3.7% in Fiscal 2016. Sales performance was led by fashion jewelry such as Ever Us and non-branded earrings and bracelets. Bridal performance was led by Vera Wang Love, Neil Lane, the newly introduced Chosen assortment, and non-branded rings. The average merchandise transaction value (“ATV”) increased driven by mix with particular strength in higher-value diamond jewelry, coupled with declines in select lower average selling price point collections such as Charmed Memories and watches. The number of merchandise transactions decreased due to the same dynamic. Mix of merchandise increased toward higher-value, less-transactional collections (e.g. Ever Us) in lieu of higher-transactional, lower-value collections (e.g. Charmed Memories).

	Changes from previous year
Fiscal 2017	Same store sales(1)		Non-same store sales, net(2)		Total sales as reported		Total sales (in millions)
Kay	(1.4	)%	1.8	%	0.4	%	$	2,539.7
Jared(3)	(4.1	)%	2.1	%	(2.0	)%	$	1,227.5
Regional brands	(9.6	)%	(11.0	)%	(20.6	)%	$	163.2
Sterling Jewelers division	(2.6	)%	1.1	%	(1.5	)%	$	3,930.4

⁽¹⁾  Based on stores open for at least 12 months. E-commerce sales are included in the calculation of same store sales for the period and comparative figures from the anniversary of the launch of the relevant website.

⁽²⁾  Includes all sales from stores not open for 12 months.

⁽³⁾  Includes smaller concept Jared stores such as Jared Vault and Jared Jewelry Boutique.

	Average Merchandise Transaction Value(1)(2)								Merchandise Transactions
	Average Value				Change from previous year				Change from previous year
Fiscal Year	Fiscal 2017		Fiscal 2016		Fiscal 2017		Fiscal 2016		Fiscal 2017		Fiscal 2016
Kay	$	458	$	430	6.5	%	7.0	%	(8.4	)%	(2.4	)%
Jared	$	556	$	558	(0.4	)%	—	%	(5.1	)%	(0.4	)%
Regional brands	$	454	$	426	6.6	%	4.4	%	(15.9	)%	(6.0	)%
Sterling Jewelers division	$	485	$	464	4.5	%	4.8	%	(7.9	)%	(2.1	)%

⁽¹⁾    Average merchandise transaction value is defined as net merchandise sales on a same store basis divided by the total number of customer transactions.

⁽²⁾  Net merchandise sales include all merchandise product sales, net of discounts and returns. In addition, excluded from net merchandise sales are sales tax in the US, repairs, warranty, insurance, employee and other miscellaneous sales.

52

Zale division sales

The Zale division’s Fiscal 2017 sales were $1,812.8 million compared to $1,811.4 million in Fiscal 2016. Zale Jewelry contributed $1,549.7 million and Piercing Pagoda contributed $263.1 million of revenues, compared to $1,568.2 million and $243.2 million, respectively, in the prior year. Total Zale division sales included purchase accounting adjustments of $13.3 million and $27.2 million in Fiscal 2017 and Fiscal 2016, respectively, related to a reduction of deferred revenue associated with extended warranty sales. Same store sales decreased 1.2% compared to an increase of 4.8% in Fiscal 2016. Zale sales growth was led by diamond fashion jewelry such as Ever Us and Endless Brilliance. This was offset by a decline in select bridal collections, solitaires, and loose diamond sales. Zale division ATV increased 5.3%, while the number of transactions decreased 5.8%. Zale had greater sales productivity in higher-value, lower-transactional collections (e.g. Vera Wang Fashion, Ever Us). Piercing Pagoda ATV increased 13.7%, while the number of transactions decreased 6.2% due to merchandise mix toward higher priced gold and diamond assortments.

	Change from previous year
Fiscal 2017	Same store sales(1)		Non-same store sales, net		Total sales at constant exchange rate		Exchange translation impact		Total sales as reported		Total sales (in millions)
Zales	(1.4	)%	2.7	%	1.3	%	—	%	1.3	%	$	1,257.4
Gordon’s	(12.2	)%	(14.3	)%	(26.5	)%	—	%	(26.5	)%	$	57.7
Zale US Jewelry	(2.0	)%	1.7	%	(0.3	)%	—	%	(0.3	)%	$	1,315.1
Peoples	(4.6	)%	1.1	%	(3.5	)%	(1.1	)%	(4.6	)%	$	204.9
Mappins	(4.2	)%	(6.9	)%	(11.1	)%	(1.3	)%	(12.4	)%	$	29.7
Zale Canada Jewelry	(4.5	)%	—	%	(4.5	)%	(1.2	)%	(5.7	)%	$	234.6
Total Zale Jewelry	(2.4	)%	1.4	%	(1.0	)%	(0.2	)%	(1.2	)%	$	1,549.7
Piercing Pagoda	6.6	%	1.6	%	8.2	%	—	%	8.2	%	$	263.1
Zale division	(1.2	)%	1.4	%	0.2	%	(0.1	)%	0.1	%	$	1,812.8

⁽¹⁾   Based on stores open for at least 12 months. Same store sales include merchandise and repair sales and excludes warranty and insurance revenues. E-commerce sales are included in the calculation of same store sales for the period and comparative figures from the anniversary of the launch of the relevant website.

	Average Merchandise Transaction Value(1)(2)						Merchandise Transactions
	Average Value				Change from previous year		Change from previous year
Fiscal Year(4)	Fiscal 2017		Fiscal 2016		Fiscal 2017		Fiscal 2017
Zales	$	460	$	451	2.0	%	(3.2	)%
Gordon’s	$	435	$	430	1.2	%	(13.1	)%
Peoples(3)	$	401	$	376	6.6	%	(10.9	)%
Mappins(3)	$	347	$	332	4.5	%	(8.4	)%
Total Zale Jewelry	$	424	$	410	3.4	%	(5.3	)%
Piercing Pagoda	$	58	$	51	13.7	%	(6.2	)%
Zale division	$	217	$	206	5.3	%	(5.8	)%

⁽¹⁾    Average merchandise transaction value is defined as net merchandise sales on a same store basis divided by the total number of customer transactions.

⁽²⁾  Net merchandise sales include all merchandise product sales net of discounts and returns. In addition, excluded from net merchandise sales are repairs, warranty, insurance, employee and other miscellaneous sales.

⁽³⁾  Amounts for Zale Canada Jewelry stores are denominated in Canadian dollars.

⁽⁴⁾  Change from prior year for average merchandise transaction value and merchandise transactions only includes Fiscal 2017 as Signet did not own Zale division for the entire comparable period in Fiscal 2016 due to timing of Zale acquisition in May 2014.

UK Jewelry sales

In Fiscal 2017, the UK Jewelry division’s total sales were $647.1 million, down 12.3%, compared to $737.6 million in Fiscal 2016. Same store sales increased by 0.1% compared to an increase of 4.9% in Fiscal 2016. ATV increased 6.0%, led by bridal jewelry, prestige watches, and select fashion diamond jewelry, offset by a 6.3% decrease in the number of transactions.

53

	Change from previous year
Fiscal 2017	Same store sales(1)		Non-same store sales, net(2)		Total sales at constant exchange rate		Exchange translation impact		Total sales as reported		Total sales (in millions)
H.Samuel	(1.3	)%	0.4	%	(0.9	)%	(13.0	)%	(13.9	)%	$	323.5
Ernest Jones	1.6	%	1.2	%	2.8	%	(13.4	)%	(10.6	)%	$	323.6
UK Jewelry division	0.1	%	0.8	%	0.9	%	(13.2	)%	(12.3	)%	$	647.1

⁽¹⁾   Based on stores open for at least 12 months. E-commerce sales are included in the calculation of same store sales for the period and comparative figures from the anniversary of the launch of the relevant website.

⁽²⁾     Includes all sales from stores not open for 12 months.

	Average Merchandise Transaction Value(1)(2)								Merchandise Transactions
	Average Value				Change from previous year				Change from previous year
Fiscal Year	Fiscal 2017		Fiscal 2016		Fiscal 2017		Fiscal 2016		Fiscal 2017		Fiscal 2016
H.Samuel	£	77	£	75	2.7	%	1.4	%	(4.9	)%	1.9	%
Ernest Jones	£	309	£	271	14.0	%	6.3	%	(11.3	)%	1.4	%
UK Jewelry division	£	124	£	117	6.0	%	2.7	%	(6.3	)%	1.8	%

⁽¹⁾    Average merchandise transaction value is defined as net merchandise sales on a same store basis divided by the total number of customer transactions.

⁽²⁾  Net merchandise sales include all merchandise product sales, including value added tax (“VAT”), net of discounts and returns. In addition, excluded from net merchandise sales are repairs, warranty, insurance, employee and other miscellaneous sales.

Fourth Quarter Sales

In the fourth quarter, Signet’s total sales were $2,269.9 million, down $122.7 million or 5.1%, compared to an increase of 5.1% in the prior year fourth quarter. Same store sales were down 4.5% compared to an increase of 4.9% in the prior year fourth quarter. Merchandise categories and collections were broadly lower most notably in the mall and e-commerce selling channels. Select merchandise and selling channels performed relatively well such as diamond fashion jewelry, bracelets, earrings, and the off-mall and kiosk selling channels. E-commerce sales in the fourth quarter were $161.8 million or 7.1% of total sales, compared to $166.3 million or 7.0% of total sales in the prior year fourth quarter. The breakdown of the sales performance is set out in the table below.

	Change from previous year
Fourth quarter of Fiscal 2017	Same store sales(1)		Non-same store sales, net(2)		Total sales at constant exchange rate(3)		Exchange translation impact(3)		Total sales as reported		Total sales (in millions)
Sterling Jewelers division	(4.9	)%	1.2	%	(3.7	)%	—	%	(3.7	)%	$	1,398.1
Zale Jewelry	(5.2	)%	1.0	%	(4.2	)%	0.4	%	(3.8	)%	$	554.9
Piercing Pagoda	5.7	%	1.5	%	7.2	%	—	%	7.2	%	$	83.7
Zale division	(3.9	)%	1.1	%	(2.8	)%	0.3	%	(2.5	)%	$	638.6
UK Jewelry division	(3.8	)%	0.5	%	(3.3	)%	(16.2	)%	(19.5	)%	$	227.6
Other(3)									133.3	%	$	5.6
Signet	(4.5	)%	1.2	%	(3.3	)%	(1.8	)%	(5.1	)%	$	2,269.9

⁽¹⁾   Based on stores open for at least 12 months. E-commerce sales are included in the calculation of same store sales for the period and comparative figures from the anniversary of the launch of the relevant website.

⁽²⁾     Includes all sales from stores not open for 12 months.

⁽³⁾     Includes sales from Signet’s diamond sourcing initiative.

Sterling Jewelers sales

In the fourth quarter, the Sterling Jewelers division’s total sales were $1,398.1 million compared to $1,452.5 million in the prior year fourth quarter, a decline of 3.7%. Same store sales decreased 4.9%, compared to an increase of 5.0% in the prior year fourth quarter. Sales performance in the fourth quarter was driven by broad-based declines across merchandise categories and under performance in the mall and e-commerce channels. This was partially offset by higher sales of diamond fashion jewelry and Vera Wang Love bridal. Sterling Jewelers’ ATV increased 7.0% and the number of transactions decreased 11.4%. ATV increased driven by mix with particular strength in higher-value diamond jewelry, coupled with declines in select lower average selling price point collections such as Charmed Memories and watches. The number of merchandise transactions decreased due to the same dynamic.

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	Change from previous year
Fourth quarter of Fiscal 2017	Same store sales(1)		Non-same store sales, net(2)		Total sales as reported		Total sales (in millions)
Kay	(5.0	)%	2.3	%	(2.7	)%	$	915.2
Jared(3)	(3.2	)%	1.2	%	(2.0	)%	$	430.6
Regional brands	(16.4	)%	(11.2	)%	(27.6	)%	$	52.3
Sterling Jewelers division	(4.9	)%	1.2	%	(3.7	)%	$	1,398.1

⁽¹⁾  Based on stores open for at least 12 months. E-commerce sales are included in the calculation of same store sales for the period and comparative figures from the anniversary of the launch of the relevant website.

⁽²⁾    Includes all sales from stores not open or owned for 12 months.

⁽³⁾    Includes smaller concept Jared stores such as Jared Vault and Jared Jewelry Boutique.

	Average Merchandise Transaction Value(1)(2)								Merchandise Transactions
	Average Value				Change from previous year				Change from previous year
Fourth quarter	Fiscal 2017		Fiscal 2016		Fiscal 2017		Fiscal 2016		Fiscal 2017		Fiscal 2016
Kay	$	429	$	403	6.5	%	10.1	%	(10.8	)%	(3.8	)%
Jared	$	530	$	492	7.7	%	(3.4	)%	(10.8	)%	3.5	%
Regional brands	$	431	$	393	9.7	%	7.1	%	(23.3	)%	(8.9	)%
Sterling Jewelers division	$	457	$	427	7.0	%	6.0	%	(11.4	)%	(2.3	)%

⁽¹⁾     Average merchandise transaction value is defined as net merchandise sales on a same store basis divided by the total number of customer transactions.

⁽²⁾   Net merchandise sales include all merchandise product sales, net of discounts and returns. In addition, excluded from net merchandise sales are sales tax in the US, repairs, warranty, insurance, employee and other miscellaneous sales.

Zale sales

In the fourth quarter, the Zale division’s total sales were $638.6 million compared to $655.1 million in the prior year fourth quarter, down 2.5%. Same store sales decreased 3.9%, compared to an increase of 4.7% in the prior year fourth quarter. Total Zale division sales included purchase accounting adjustments of $2.6 million and $5.2 million related to a reduction of deferred revenue associated with extended warranty sales in the fourth quarter of Fiscal 2017 and Fiscal 2016, respectively.

Zale Jewelry contributed $554.9 million of sales, a decrease of 3.8% from the prior year fourth quarter sales. Same store sales declined by 5.2% compared to an increase of 4.4% in prior year fourth quarter. Zale Jewelry ATV increased 2.4%, while the number of transactions decreased 7.4%. Increases in higher-price point diamond fashion jewelry and bracelets were more than offset by declines across all other merchandise categories.

Piercing Pagoda contributed $83.7 million of sales, an increase of 7.2% over prior year fourth quarter sales. Piercing Pagoda same store sales increased 5.7% compared to an increase of 6.4% in prior year fourth quarter. Piercing Pagoda ATV increased 12.7% principally driven by strong sales of gold, religious and children’s jewelry, while the number of transactions decreased 5.6% primarily as a result of lower piercings.

	Change from previous year
Fourth quarter of Fiscal 2017	Same store sales(1)		Non-same store sales, net(2)		Total sales at constant exchange rate		Exchange translation impact		Total sales as reported		Total sales (in millions)
Zales	(4.5	)%	2.6	%	(1.9	)%	—	%	(1.9	)%	$	452.5
Gordon’s	(13.3	)%	(17.7	)%	(31.0	)%	—	%	(31.0	)%	$	18.7
Zale US Jewelry	(4.9	)%	1.4	%	(3.5	)%	—	%	(3.5	)%	$	471.2
Peoples	(7.6	)%	0.5	%	(7.1	)%	2.2	%	(4.9	)%	$	73.2
Mappins	(3.9	)%	(8.6	)%	(12.5	)%	2.2	%	(10.3	)%	$	10.5
Zale Canada Jewelry	(7.2	)%	(0.6	)%	(7.8	)%	2.2	%	(5.6	)%	$	83.7
Total Zale Jewelry	(5.2	)%	1.0	%	(4.2	)%	0.4	%	(3.8	)%	$	554.9
Piercing Pagoda	5.7	%	1.5	%	7.2	%	—	%	7.2	%	$	83.7
Zale division(3)	(3.9	)%	1.1	%	(2.8	)%	0.3	%	(2.5	)%	$	638.6

⁽¹⁾   Based on stores open for at least 12 months. Same store sales include merchandise and repair sales and excludes warranty and insurance revenues. E-commerce sales are included in the calculation of same store sales for the period and comparative figures from the anniversary of the launch of the relevant website.

⁽²⁾     Includes all sales from stores not open for 12 months.

⁽³⁾     The Zale division same store sales includes merchandise and repair sales and excludes warranty and insurance revenues.

55

	Average Merchandise Transaction Value(1)(2)								Merchandise Transactions
	Average Value				Change from previous year				Change from previous year
Fourth quarter	Fiscal 2017		Fiscal 2016		Fiscal 2017		Fiscal 2016		Fiscal 2017		Fiscal 2016
Zales	$	421	$	418	0.7	%	6.1	%	(5.1	)%	(0.1	)%
Gordon’s	$	405	$	399	1.5	%	(0.3	)%	(14.5	)%	(7.9	)%
Peoples(3)	$	367	$	346	6.1	%	6.5	%	(13.4	)%	(6.7	)%
Mappins(3)	$	328	$	297	10.4	%	(1.4	)%	(12.9	)%	(7.3	)%
Total Zale Jewelry	$	387	$	378	2.4	%	6.2	%	(7.4	)%	(2.1	)%
Piercing Pagoda	$	62	$	55	12.7	%	10.0	%	(5.6	)%	(2.7	)%
Zale division	$	227	$	221	2.7	%	6.8	%	(6.5	)%	(2.4	)%

⁽¹⁾    Average merchandise transaction value is defined as net merchandise sales on a same store basis divided by the total number of customer transactions.

⁽²⁾  Net merchandise sales include all merchandise product sales net of discounts and returns. In addition, excluded from net merchandise sales are repairs, warranty, insurance, employee and other miscellaneous sales.

⁽³⁾  Amounts for Zale Canada Jewelry stores are denominated in Canadian dollars.

UK Jewelry sales

In the fourth quarter, the UK Jewelry division’s total sales were down by 19.5% to $227.6 million compared to $282.6 million in the prior year fourth quarter. Same store sales decreased 3.8% compared to an increase of 4.7% in the prior year fourth quarter. Average merchandise transaction value increased 8.0% and the number of transactions decreased 11.8%. The results were driven principally by weaker sales of highly-transactional merchandise such as fashion jewelry, fashion watches and gifts, offset by stronger sales of prestige watches and bridal jewelry.

	Change from previous year
Fourth quarter of Fiscal 2017	Same store sales(1)		Non-same store sales, net(2)		Total sales at constant exchange rate		Exchange translation impact		Total sales as reported		Total sales (in millions)
H.Samuel	(5.3	)%	0.4	%	(4.9	)%	(15.9	)%	(20.8	)%	$	119.7
Ernest Jones(3)	(2.1	)%	0.6	%	(1.5	)%	(16.4	)%	(17.9	)%	$	107.9
UK Jewelry division	(3.8	)%	0.5	%	(3.3	)%	(16.2	)%	(19.5	)%	$	227.6

⁽¹⁾  Based on stores open for at least 12 months. E-commerce sales are included in the calculation of same store sales for the period and comparative figures from the anniversary of the launch of the relevant website.

⁽²⁾    Includes all sales from stores not open for 12 months.

⁽³⁾    Includes stores selling under the Leslie Davis nameplate.

	Average Merchandise Transaction Value(1)(2)								Merchandise Transactions
	Average Value				Change from previous year				Change from previous year
Fourth quarter	Fiscal 2017		Fiscal 2016		Fiscal 2017		Fiscal 2016		Fiscal 2017		Fiscal 2016
H.Samuel	£	78	£	75	4.0	%	1.4	%	(10.3	)%	2.0	%
Ernest Jones(3)	£	299	£	253	18.2	%	9.1	%	(17.5	)%	(2.1	)%
UK Jewelry division	£	121	£	112	8.0	%	3.7	%	(11.8	)%	1.1	%

⁽¹⁾     Average merchandise transaction value is defined as net merchandise sales on a same store basis divided by the total number of customer transactions.

⁽²⁾   Net merchandise sales include all merchandise product sales, including value added tax (“VAT”), net of discounts and returns. In addition, excluded from net merchandise sales are repairs, warranty, insurance, employee and other miscellaneous sales.

⁽³⁾    Includes stores selling under the Leslie Davis nameplate.

Cost of Sales and Gross Margin

In Fiscal 2017, gross margin was $2,360.8 million or 36.8% of sales compared to $2,440.4 million or 37.3% of sales in Fiscal 2016. The decrease in gross margin dollars was attributable to lower sales, higher bad debt expense and de-leverage on store occupancy costs, offset in part by decreased effect of purchase accounting adjustments of $11.3 million compared to $35.6 million.

• The Sterling Jewelers division gross margin dollars decreased $64.0 million compared to Fiscal 2016, reflecting decreased sales and a decline in the gross margin rate of 100 basis points due to higher bad debt expense and de-leverage on store occupancy costs. Gross merchandise margin rate was flat to prior year.

• In the Zale division, gross margin dollars increased $24.0 million compared to Fiscal 2016, primarily attributable to the decreased effect of purchase accounting adjustments which totaled $11.3 million in Fiscal 2017 and $35.6 million in the prior year. The gross margin rate increased 120 basis points reflecting higher merchandise margins offset in part by de-leverage on store occupancy costs.

56

• In the UK Jewelry division, gross margin dollars decreased $39.5 million compared to Fiscal 2016, reflecting gross margin rate decrease of 170 basis points. The decreases in dollars and rate were driven principally by lower sales, de-leverage on store occupancy, a 90 basis point decline in the gross merchandise margin rate, including the unfavorable effect of foreign exchange.

In the fourth quarter, the consolidated gross margin was $945.5 million or 41.7% of sales compared to $1,016.0 million or 42.5% of sales in the prior year fourth quarter. Included in gross margin were purchase accounting adjustments totaling $1.6 million compared to $4.7 million in prior year fourth quarter. The decline in consolidated gross margin was driven principally by lower sales leading to de-leverage on fixed costs as well as incremental promotional activity resulting in a flat merchandise margin rate to last year.

The decline in gross margin was driven principally by lower sales leading to de-leverage on fixed costs as well as more promotional activity.

• Gross margin dollars in the Sterling Jewelers division decreased $41.2 million compared to prior year fourth quarter, while the gross margin rate decreased 120 basis points due primarily to lower sales which de-leveraged fixed costs, such as store occupancy. In addition, higher bad debt expense and incremental promotional activity unfavorably impacted the gross margin rate.

• In the Zale division, gross margin dollars decreased $2.3 million compared to prior year fourth quarter. Included in gross margin were purchase accounting adjustments totaling $1.6 million compared to $4.7 million in prior year fourth quarter. The gross margin rate increased 70 basis points reflecting higher merchandise margins offset in part by de-leverage on store occupancy costs.

• In the UK Jewelry division, gross margin dollars decreased $26.6 million compared to Fiscal 2016, while the gross margin rate decreased 220 basis points driven principally by de-leverage on lower sales and lower merchandise margins due to increased promotional activity.

Selling, General and Administrative Expenses

Selling, general and administrative expenses for Fiscal 2017 were $1,880.2 million or 29.3% of sales compared to $1,987.6 million or 30.4% of sales in Fiscal 2016, down $107.4 million. The decrease was attributable to lower variable compensation costs due to lower sales and a reduction in integration costs primarily as a result of the $34.2 million appraisal settlement in the prior year. Included in SGA were unfavorable purchase accounting adjustments of $5.5 million and integration costs of $28.4 million in Fiscal 2017 compared to favorable purchase accounting adjustments of $9.2 million and transaction and integration costs of $78.9 million in Fiscal 2016. The decrease in dollars and rate was driven primarily by lower variable compensation due to lower sales, lower advertising expense, merchant fee savings in Zale credit programs and favorable foreign exchange translation, offset in part by higher information technology (“IT”) expense associated with Signet’s IT modernization roadmap.

In the fourth quarter, SGA expense was $615.3 million or 27.1% of sales compared to $686.6 million or 28.7% of sales in the prior year fourth quarter. The decrease was attributable to lower variable compensation costs due to lower sales and a reduction in integration costs including consulting costs incurred in connection with the Zale integration, severance related to organizational changes and expenses associated with the settlement of miscellaneous legal matters pending as of the date of the Zale acquisition. Included in SGA were unfavorable purchase accounting adjustments of $1.6 million and integration costs of $9.9 million compared to unfavorable purchase accounting adjustments of $1.5 million and integration costs of $19.1 million in the prior year fourth quarter. The 120 basis point decrease in SGA rate was driven primarily by lower variable compensation including short-term and long-term incentive compensation, impact of synergies, lower advertising expense, merchant fee savings in Zale credit programs and foreign exchange translation. Offsetting these items was higher IT expense associated with Signet’s IT modernization roadmap.

Other Operating Income, Net

In Fiscal 2017, other operating income, net was $282.6 million or 4.4% of sales compared to $250.9 million or 3.8% of sales in Fiscal 2016. In the fourth quarter, other operating income, net was $69.0 million or 3.0% of sales compared to $63.7 million or 2.6% of sales in the prior year fourth quarter. The year-over-year increase was primarily attributable to higher interest income earned from higher outstanding receivable balances.

57

Operating Income

In Fiscal 2017, operating income was $763.2 million or 11.9% of sales compared to $703.7 million or 10.7% of sales in Fiscal 2016. Included in operating income were purchase accounting adjustments of $16.8 million and transaction and integration costs of $28.4 million.

	Fiscal 2017					Fiscal 2016
(in millions)	$			% of sales		$			% of sales
Sterling Jewelers division	$	715.8		18.2	%	$	718.6		18.0	%
Zale division(1)	73.4			4.0	%	52.1			2.9	%
UK Jewelry division	45.6			7.0	%	61.5			8.3	%
Other(2)	(71.6		)	nm		(128.5		)	nm
Operating income	$	763.2		11.9	%	$	703.7		10.7	%

⁽¹⁾  Zale division includes net operating loss impact of $16.8 million for purchase accounting adjustments. The Zale division operating income included $62.2 million from Zale Jewelry or 4.0% of sales and $11.2 million from Piercing Pagoda or 4.3% of sales. In the prior year, Zale division includes net operating loss impact of $26.4 million for purchase accounting adjustments. The Zale division operating income included $44.3 million from Zale Jewelry or 2.8% of sales and $7.8 million from Piercing Pagoda or 3.2% of sales.

⁽²⁾  Other includes $28.4 million and $78.9 million of transaction and integration expenses in Fiscal 2017 and Fiscal 2016, respectively. Transaction and integration costs include legal settlement of $34.2 million over appraisal rights, and expenses associated with legal, tax, accounting, information technology implementation, consulting and severance.

nm Not meaningful.

In the fourth quarter, operating income was $399.2 million or 17.6% of sales compared to $393.1 million or 16.4% of sales in prior year fourth quarter. Included in operating income were purchase accounting adjustments of $3.3 million and transaction and integration costs of $9.9 million.

	Fourth Quarter Fiscal 2017					Fourth Quarter Fiscal 2016
(in millions)	$			% of sales		$			% of sales
Sterling Jewelers division	$	298.0		21.3	%	$	305.4		21.0	%
Zale division(1)	71.7			11.2	%	63.0			9.6	%
UK Jewelry division	42.6			18.7	%	57.8			20.5	%
Other(2)	(13.1		)	nm		(33.1		)	nm
Operating income	$	399.2		17.6	%	$	393.1		16.4	%

⁽¹⁾  Zale division includes net operating loss impact of $3.3 million for purchase accounting adjustments. The Zale division operating income included $62.7 million from Zale Jewelry or 11.3% of sales and $9.0 million from Piercing Pagoda or 10.8% of sales. In the prior year fourth quarter, Zale division includes net operating loss impact of $6.2 million for purchase accounting adjustments. The Zale division operating income included $54.2 million from Zale Jewelry or 9.4% of sales and $8.8 million from Piercing Pagoda or 11.3% of sales.

⁽²⁾   Other includes $9.9 million and $19.1 million of transaction and integration expenses in Fiscal 2017 and Fiscal 2016, respectively. Transaction and integration costs include expenses associated with legal, tax, information technology implementation, consulting and severance.

nm Not meaningful.

Interest Expense, Net

In Fiscal 2017, net interest expense was $49.4 million compared to $45.9 million in Fiscal 2016. The weighted average interest rate for the Company’s debt outstanding was 2.8% compared to 2.6% in the prior year.

In the fourth quarter, net interest expense was $13.0 million compared to $12.1 million in the prior year fourth quarter. The weighted average interest rate for the Company’s debt outstanding was 2.9% compared to 2.7% in the prior year fourth quarter.

Income Before Income Taxes

In Fiscal 2017, income before income taxes increased $56.0 million to $713.8 million or 11.1% of sales compared to $657.8 million or 10.0% of sales in Fiscal 2016.

In the fourth quarter, income before income taxes increased $5.2 million to $386.2 million or 17.0% of sales compared to $381.0 million or 15.9% of sales in the prior year fourth quarter.

Income Taxes

Income tax expense for Fiscal 2017 was $170.6 million compared to $189.9 million in Fiscal 2016, with an effective tax rate of 23.9% for Fiscal 2017 compared to 28.9% in Fiscal 2016. In the fourth quarter, income tax expense was $88.7 million compared to $109.1 million in the prior year fourth quarter. The lower effective tax rate in Fiscal 2017 was driven principally by income mix by jurisdiction and effect of global reinsurance and financing arrangements, including certain intra-entity debt agreements which mature on various dates between fiscal year 2022 and 2027.

Net Income

Net income for Fiscal 2017 was up 16.1% to $543.2 million or 8.5% of sales compared to $467.9 million or 7.1% of sales in Fiscal 2016.

For the fourth quarter, net income was up 9.4% to $297.5 million or 13.1% of sales compared to $271.9 million or 11.4% of sales in the prior year fourth quarter.

58

Earnings per Share

For Fiscal 2017, diluted earnings per share were $7.08 compared to $5.87 in Fiscal 2016, an increase of 20.6%. Included within diluted earnings per share are integration costs of $0.23 in Fiscal 2017 and transaction and integration costs of $0.78 per share in Fiscal 2016 and net loss impacts of $0.14 and $0.21 per share in Fiscal 2017 and Fiscal 2016, respectively, for purchase accounting adjustments. The weighted average diluted number of common shares outstanding was 76.7 million compared to 79.7 million in Fiscal 2016. Signet repurchased 11.2 million shares in Fiscal 2017 compared to 1.0 million shares in Fiscal 2016.

For the fourth quarter, diluted earnings per share were $3.92 compared to $3.42 in the prior year fourth quarter, up 14.6%. Included within diluted earnings per share are integration costs of $0.07 in the fourth quarter of Fiscal 2017 and transaction and integration costs of $0.15 per share in the fourth quarter of Fiscal 2016 and net loss impacts of $0.03 and $0.06 per share in the fourth quarter of Fiscal 2017 and Fiscal 2016, respectively, for purchase accounting adjustments. The weighted average diluted number of common shares outstanding was 75.8 million compared to 79.4 million in the prior year fourth quarter.

The Company issued preferred shares on October 5, 2016, which include a cumulative dividend right and may be converted into common shares. The Company’s computation of diluted earnings per share includes the effect of potential common shares for outstanding awards issued under the Company’s share-based compensation plans and preferred shares upon conversion, if dilutive. In computing diluted EPS, the Company also adjusts the numerator used in the basic EPS computation, subject to anti-dilution requirements, to add back the dividends (declared or cumulative undeclared) applicable to the preferred shares. For the fourth quarter and year to date periods, the preferred shares were more dilutive if conversion was assumed. See Item 8 for additional information related to the preferred shares (Note 6) or the calculation of earnings per share (Note 8).

Dividends per Common Share

In Fiscal 2017, dividends of $1.04 were declared by the Board of Directors compared to $0.88 in Fiscal 2016.

LIQUIDITY AND CAPITAL RESOURCES

Summary Cash Flow

The following table provides a summary of Signet’s cash flow activity for Fiscal 2018, Fiscal 2017 and Fiscal 2016:

(in millions)	Fiscal 2018			Fiscal 2017			Fiscal 2016
Net cash provided by operating activities	$	1,940.5		$	678.3		$	443.3
Net cash used in investing activities	(569.4		)	(278.4		)	(228.7		)
Net cash used in financing activities	(1,253.6		)	(438.2		)	(266.6		)
Increase (decrease) in cash and cash equivalents	117.5			(38.3		)	(52.0		)
Cash and cash equivalents at beginning of period	98.7			137.7			193.6
Increase (decrease) in cash and cash equivalents	117.5			(38.3		)	(52.0		)
Effect of exchange rate changes on cash and cash equivalents	8.9			(0.7		)	(3.9		)
Cash and cash equivalents at end of period	$	225.1		$	98.7		$	137.7
Free cash flow(1)	$	1,703.1		$	400.3		$	216.8

⁽¹⁾  Non-GAAP measure. See Item 6 for additional information.

OVERVIEW

Operating activities provide the primary source of cash and are influenced by a number of factors, such as:

• net income;

• changes in the level of inventory as a result of sales and new store growth;

• changes to accounts receivable driven by the in-house customer finance program metrics including average monthly collection rate and the mix of finance offer participation;

• changes to accrued expenses including variable compensation; and

• deferred revenue, reflective of the performance of extended service plan sales.

Other sources of cash include borrowings and issuance of common and preferred shares for cash.

59

Net Cash Provided By Operating Activities

Signet derives most of its operating cash from net income through the sale of jewelry. As a retail business, Signet receives cash when it makes a sale to a customer or when the payment has been processed by Signet or the relevant bank if the payment is made by third-party credit or debit card. Partially offsetting cash receipts via sales are payments of operating expenses. Signet’s largest operating expenses are cost of inventory along with payroll and payroll-related benefits.

Working Capital

Changes to accounts receivable are driven by the Sterling Jewelers division in-house credit program. If a customer makes use of financing provided by the Sterling Jewelers division, the cash is received over time based on terms of the agreement. In October 2017, Signet, through its subsidiary Sterling Jewelers Inc., completed the sale of the prime-only credit quality portion of Sterling’s in-house finance receivable portfolio to Comenity. In addition, during March 2018, the Company announced that it entered a definitive agreement with CarVal Investors to sell all eligible non-prime in-house accounts receivable. Upon completion of the transaction announced in March 2018, the working capital requirements for Signet are expected to decrease materially as there will no longer be an in-house credit program funded by the Company.

In Fiscal 2018, 57.9% of the Sterling Jewelers division’s sales were made using customer financing provided by Signet, as compared to 62.0% in Fiscal 2017. The average monthly collection rate from the Sterling Jewelers customer in-house finance receivables was 9.7% as compared to 11.0% in Fiscal 2017. Changes in credit participation and the collection rate impact the level of receivables.

Changes to accounts payable are primarily driven by the timing and amount of merchandise purchased, the mix of merchandise purchased and the relevant payment terms. Signet typically pays for merchandise within 30 days of receipt. Due to the nature of specialty retail jewelry, it is usual for inventory to turnover on average once approximately every 12 months.

Signet’s working capital requirements fluctuate during the year as a result of the seasonal nature of sales, and movements in the British pound and Canadian dollar to US dollar exchange rate. The working capital needs of the business normally decline from January to August, as inventory and accounts receivable decrease from seasonal peaks. As inventory is purchased for the fourth quarter, there is a working capital outflow which reaches its highest levels in mid- to late-November. The peak level of working capital is typically $100 million to $150 million above the typical January to August level, and can be accentuated by new store openings. The working capital position then reverses over the Holiday Season.

The change in inventory is primarily driven by the sales performance of the existing stores, the net change in store space and the seasonal pattern of sales. Other factors which drive changes to inventory include changes in sourcing practices, commodity costs, foreign exchange and merchandise mix. To further enhance product selection, test new jewelry designs and working capital levels, Signet enters into consignment arrangements for merchandise. The majority of inventory held on consignment is in the US, which at February 3, 2018 amounted to $606.4 million as compared to $574.0 million at January 28, 2017. 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 supplier without financial or commercial penalties. When Signet sells consignment inventory, it becomes liable to the supplier for the cost of the item. The sale of any such inventory is accounted for on a gross basis (see principal accounting policies, Item 8).

Signet’s working capital is also impacted by movements in deferred revenue associated with the sales of extended service plans sold in Sterling Jewelers and Zale divisions. Movements in deferred revenue reflect the level of divisional sales and the attachment rate of service plan sales. Therefore if sales increase, working capital would be expected to increase. Similarly, a decrease in sales would be expected to result in a reduction in working capital.

Signet’s largest class of operating expense relates to store and central payroll and benefits. These are typically paid on a weekly, biweekly or monthly basis, with annual bonus payments also being made. Operating lease payments in respect of stores occupied are normally paid on a monthly basis by the Sterling Jewelers and Zale divisions and on a quarterly basis by the UK Jewelry division. Payment for advertising on television, radio or in print is usually made between 30 and 60 days after the advertisement appears. Other expenses, none of which are material, have various payment terms.

Investment in new space requires significant investment in working capital, as well as fixed capital investment, due to the inventory turn, and the additional investment required to fund sales in the Sterling Jewelers and Zale divisions utilizing in-house customer finance. Of the total investment required to open a new store in the US, between 50% and 60% is typically accounted for by working capital. New stores are usually opened in the third quarter or early in the fourth quarter of a fiscal year. A reduction in the number of store openings results in the difference between the level of funding required in the first half of a fiscal year and the peak level being lower, while an increase in the number of store openings would have the opposite impact.

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Fiscal 2018 Cash Flow Results

In Fiscal 2018, net cash provided by operating activities was $1.9 billion as compared to $678.3 million in Fiscal 2017. The increase of $1.3 billion is primarily attributable to $952.5 million of proceeds from the sale of in-house finance receivables, partially offset by a non-cash charge of $30.9 million related to the sale, a $23.9 million decrease in net income and the following cash flows associated with changes in operating assets and liabilities:

• Cash provided by accounts receivable was $242.1 million compared to a use of $102.7 million in Fiscal 2017. See the ‘Working Capital’ section above and Item 1 for a summary of key customer financing statistics related to the Sterling Jewelers customer in-house finance receivables. Additionally, see Note 3 of Item 8 for additional information regarding the sale of the prime portion of the in-house finance receivables.

• Cash provided by inventory and inventory-related items was $210.9 million compared to a use of $9.7 million in Fiscal 2017. The change in inventory cash flows is attributed to the change in total inventory on-hand to $2.3 billion in Fiscal 2018 compared to $2.4 billion in Fiscal 2017. Key factors impacting the decrease in total inventory were initiatives focused on reducing inventory levels offset by the effect of foreign exchange and higher commodity prices.

• The decrease in income taxes payable was $82.4 million compared an increase of $38.9 million in Fiscal 2017. Cash outflow in Fiscal 2018 is attributable to lower taxable income as a result of the favorable impact of the Tax Cuts and Jobs Act in the United States and lower pre-tax earnings. The Tax Cuts and Jobs Act also impacted the non-cash movement in deferred taxation which reflects an outflow of $33.4 million compared to an inflow of $27.7 million in Fiscal 2017.

Net Cash Used in Investing Activities

Net cash used in investing activities primarily reflects the purchases of property, plant and equipment related to the:

• rate of space expansion in the US;

• investment in existing stores, reflecting the level of investment in sales-enhancing technology, and the number of store remodels and relocations carried out; and

• investments in IT modernization and digital ecosystem.

When evaluating new store investment, management uses an investment hurdle rate of a 20% internal rate of return on a pre-tax basis over a five year period, assuming the release of working capital at the end of the five years. Capital expenditure accounts for about 45% of the investment in a new store in the Sterling Jewelers division. The balance is accounted for by investment in inventory and the funding of customer financing. Signet typically carries out a remodel of its stores every 10 years but does have some discretion as to the timing of such expenditure. A remodel is evaluated using the same investment procedures as for a new store. Minor store refurbishments are typically carried out every five years. In addition to store remodels, Signet carries out minor store refurbishments where stores are profitable but do not satisfy the investment hurdle rate required for a full remodel; this is usually associated with a short term lease renewal. Where possible, the investment appraisal approach is also used to evaluate other investment opportunities.

In Fiscal 2018, net cash used in investing activities was $569.4 million, compared to $278.4 million in Fiscal 2017 and $228.7 million in Fiscal 2016. The overall increase in capital additions was primarily due to the acquisition of R2Net as discussed in Note 4 of Item 8. Excluding the acquisition of R2Net in Fiscal 2018, cash used in each period was primarily for capital additions associated with new store locations and remodels of existing stores, as well as capital investments in IT. See table below for additional information regarding capital additions.

	Fiscal 2018			Fiscal 2017			Fiscal 2016
(in millions)
Capital additions in Sterling Jewelers	$	134.8		$	154.5		$	141.6
Capital additions in Zale division	84.9			97.7			57.9
Capital additions in UK Jewelry	17.6			25.7			26.4
Capital additions in Other	0.1			0.1			0.6
Total purchases of property, plant and equipment	$	237.4		$	278.0		$	226.5
Ratio of capital additions to depreciation and amortization in Sterling Jewelers	110.7		%	137.1		%	133.3		%
Ratio of capital additions to depreciation and amortization in Zale division	137.6		%	181.9		%	120.4		%
Ratio of capital additions to depreciation and amortization in UK Jewelry	92.1		%	119		%	131.3		%
Ratio of capital additions to depreciation and amortization for Signet	116.7		%	147.2		%	129.2		%

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Free Cash Flow

Free cash flow (non-GAAP measure, see Item 6) is defined as net cash provided by operating activities less purchases of property, plant and equipment. Free cash flow in Fiscal 2018 was $1.7 billion compared to $400.3 million and $216.8 million in Fiscal 2017 and Fiscal 2016, respectively. The increase in free cash flow in Fiscal 2018 compared to Fiscal 2017 was primarily due to the proceeds on the sale of a portion of the Company’s in-house finance receivables (see Note 3 of item 8 and ‘Working Capital’ section above).

Net Cash Used in Financing Activities

The major items within financing activities are discussed below:

Proceeds from issuance of equity shares

On October 5, 2016, the Company issued 625,000 preferred shares to Green Equity Investors VI, L.P., Green Equity Investors Side VI, L.P., LGP Associates VI-A LLC and LGP Associates VI-B LLC, all affiliates of Leonard Green & Partners, L.P., (together, the “Investors”) for an aggregate purchase price of $625.0 million, or $1,000 per share (the “Stated Value”) pursuant to the investment agreement dated August 24, 2016. In connection with the issuance of the preferred shares, the Company incurred direct and incremental expenses of $13.7 million, including financial advisory fees, closing costs, legal expenses and other offering-related expenses. The preferred shares rank senior to the Company’s common shares, with respect to dividend rights and rights on the distribution of assets on any voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Company. Preferred shareholders are entitled to a cumulative dividend at the rate of 5% per annum, payable quarterly in arrears, commencing on February 15, 2017. See Note 6 of Item 8 for additional information related to preferred shareholder rights.

In addition, $0.3 million was received in Fiscal 2018 from the issuance of common shares as compared to $2.1 million in Fiscal 2017. Other than equity based compensation awards granted to employees, Signet has not issued common shares as a financing activity for more than 10 years.

Dividends

Dividends on common shares

	Fiscal 2018					Fiscal 2017					Fiscal 2016
(in millions, except per share amounts)	Cash dividend per share		Total dividends			Cash dividend per share		Total dividends			Cash dividend per share		Total dividends
First quarter	$	0.31	$	21.3		$	0.26	$	20.4		$	0.22	$	17.6
Second quarter	0.31		18.7			0.26		19.7			0.22		17.6
Third quarter	0.31		18.7			0.26		18.1			0.22		17.5
Fourth quarter	0.31		18.8		(1)	0.26		17.7		(1)	0.22		17.5
Total	$	1.24	$	77.5		$	1.04	$	75.9		$	0.88	$	70.2

⁽¹⁾  Signet’s dividend policy results in the dividend payment date being a quarter in arrears from the declaration date. As a result, as of February 3, 2018 and January 28, 2017, $18.8 million and $17.7 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 2018 and Fiscal 2017, respectively.

In addition, on March 14, 2018, Signet’s Board of Directors declared a quarterly dividend of $0.37 per share on its common shares. This dividend will be payable on June 1, 2018 to shareholders of record on May 4, 2018, with an ex-dividend date of May 3, 2018.

Dividends on preferred shares

	Fiscal 2018		Fiscal 2017
(in millions)	Total cash dividends		Total cash dividends
First quarter	$	7.8	$	—
Second quarter	7.8		—
Third quarter	7.8		—
Fourth quarter(1)	7.8		11.3
Total	$	31.2	$	11.3

⁽¹⁾  Signet’s preferred shares dividends results in the dividend payment date being a quarter in arrears from the declaration date. As a result, as of February 3, 2018 and January 28, 2017, $7.8 million and $11.3 million, respectively, has been recorded in accrued expenses and other current liabilities in the condensed consolidated balance sheets reflecting the cash dividends on preferred shares declared for the fourth quarter of Fiscal 2018 and Fiscal 2017, respectively.

There were no cumulative undeclared dividends on the preferred shares as of February 3, 2018. In addition, deemed dividends of $1.7 million and $0.6 million related to accretion of issuance costs associated with the preferred shares were recognized in Fiscal 2018 and Fiscal 2017, respectively.

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Restrictions on dividend payments

Signet has a senior unsecured multi-currency, multi-year revolving credit facility agreement (the “Credit Facility”) which provides the Company with a $700.0 million revolving credit facility and a $357.5 million term loan facility. This credit facility agreement permits the making of dividend payments and stock repurchases so long as the Parent Company (i) is not in default under the agreement, or (ii) if in default at the time of making such dividend repayment or stock repurchase, has no loans outstanding under the agreement or more than $10 million in letters of credit issued under the agreement.

Under Bermuda law, a company may not declare or pay dividends if there are reasonable grounds for believing that the company is, or would after the payment be, unable to pay its liabilities as they become due or that the realizable value of its assets would thereby be less than its liabilities.

Share repurchases

The Company’s share repurchase activity was as follows:

			Fiscal 2018					Fiscal 2017					Fiscal 2016
(in millions, expect per share amounts)	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
2016 Program(1)	$	1,375.0	8.1	$	460.0	$	56.91	10.0	864.4		$	86.40	n/a	n/a		n/a
2013 Program(2)	$	350.0	n/a	n/a		n/a		1.2	$	135.6	$	111.26	1.0	$	130	$	127.63
Total			8.1	$	460.0	$	56.91	11.2	$	1,000.0	$	89.10	1.0	$	130.0	$	127.63

⁽¹⁾  The 2016 Program had $50.6 million remaining as of February 3, 2018.

⁽²⁾  The 2013 Program was completed in May 2016.

n/a Not applicable.

In February 2016, the Board authorized the repurchase of Signet’s common shares up to $750.0 million (the “2016 Program”). In August 2016, the Board increased its authorized share repurchase program by $625.0 million, bringing the total authorization for the 2016 Program to $1.4 billion. The 2016 Program may be suspended or discontinued at any time without notice.

On October 5, 2016, the Company entered into an accelerated share repurchase agreement (“ASR”) with a large financial institution to repurchase $525.0 million of the Company’s common shares. At inception, the Company paid $525.0 million to the financial institution and took delivery of 4.7 million shares with an initial estimated cost of $367.5 million. In December 2016, the ASR was finalized and the Company received an additional 1.3 million shares. Total shares repurchased under the ASR were 6.0 million shares at an average purchase price of $87.01per share based on the volume-weighted average price of the Company’s common shares traded during the pricing period, less an agreed discount.

In June 2017, the Board of Directors authorized a new program to repurchase $600.0 million of Signet’s common shares (the “2017 Program”). The 2017 Program may be suspended or discontinued at any time without notice.

The total authorization remaining under all authorized repurchase programs as of February 3, 2018 was $650.6 million.

Movement in Cash and Indebtedness

Cash and cash equivalents at February 3, 2018 were $225.1 million compared to $98.7 million as of January 28, 2017. Signet has significant amounts of cash and cash equivalents invested in various ‘AAA’ rated liquidity funds and at a number of financial institutions. The amount invested in each liquidity fund or at each financial institution takes into account the credit rating and size of the liquidity fund or financial institution and is invested for short-term durations.

At February 3, 2018, Signet had $739.3 million of outstanding debt, comprised of $398.9 million of senior unsecured notes, a $326.2 million term loan facility, and bank overdrafts totaling $14.2 million. During Fiscal 2018, the Company utilized the gross proceeds from the sale of the prime portion of the in-house receivables to repay the $600 million asset-backed securitization facility. The term loan requires the Company to make scheduled quarterly principal payments over the five-year term. During Fiscal 2018, $22.3 million in principal payments were made.

During the second quarter of Fiscal 2017, Signet amended and restated its Credit Facility agreement to (i) increase the borrowing capacity under the revolving credit facility from $400 million to $700 million and extend the maturity date to July 2021 and (ii) extend the maturity date of the term loan facility to July 2021 and revise the scheduled quarterly principal repayments to align with the July 2021 maturity date. Additionally, Signet amended the note purchase agreement associated with the asset-backed securitization facility to extend the term of the facility by one year to May 2018 with remaining terms substantially consistent with the existing agreement.

The Company had stand-by letters of credit on the revolving credit facility of $15.7 million and $15.3 million as of February 3, 2018 and January 28, 2017, respectively, that reduce remaining availability under the revolving credit facility.

Net debt (non-GAAP measure, see Item 6) was $507.1 million as of February 3, 2018 compared to net debt of $1.3 billion as of January 28, 2017.

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Capital availability

Signet’s level of borrowings and cash balances fluctuates during the year reflecting the seasonality of its cash flow requirements and business performance. Management believes that cash balances and the committed borrowing facilities (including the Credit Facility described more fully in Note 20 of Item 8) currently available to the business are sufficient for both its present and near term requirements. The following table provides a summary of these items as of February 3, 2018, January 28, 2017 and January 30, 2016:

(in millions)	February 3, 2018		January 28, 2017		January 30, 2016
Working capital	$	2,408.9	$	3,438.9	$	3,437.0
Capitalization:
Long-term debt	688.2		1,317.9		1,321.0
Series A redeemable convertible preferred shares	613.6		611.9		—
Shareholder’s equity	2,499.8		2,490.2		3,060.7
Total capitalization	$	3,801.6	$	4,420.0	$	4,381.7
Additional amounts available under credit agreements	$	684.3	$	628.7	$	371.2

In addition to cash generated from operating activities, during Fiscal 2018, Fiscal 2017 and Fiscal 2016, Signet also had funds available from the credit facilities described above.

Signet’s Credit Facility contains various customary representations and warranties, financial reporting requirements and other affirmative and negative covenants. The Credit Facility requires that Signet maintain at all times a “Leverage Ratio” (as defined in the agreement) to be no greater than 2.50 to 1.00 and a “Fixed Charge Coverage Ratio” (as defined in the agreement) to be no less than 1.40 to 1.00, both determined as of the end of each fiscal quarter of Signet for the trailing twelve months.

Credit Rating

The following table provides Signet’s credit ratings as of February 3, 2018:

Rating Agency	Corporate	Senior Unsecured Notes
Standard & Poor’s	BBB-	BBB-
Moody’s	Ba1	Ba1
Fitch	BB	BB

OFF-BALANCE SHEET ARRANGEMENTS

Merchandise held on consignment

Signet held $606.4 million of consignment inventory which is not recorded on the balance sheet at February 3, 2018, as compared to $574.0 million at January 28, 2017. 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 supplier without financial or commercial penalty.

Contingent property liabilities

At February 3, 2018, approximately 19 property leases had been assigned by Signet to third parties (and remained unexpired and occupied by assignees at that date) and approximately 10 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.

CONTRACTUAL OBLIGATIONS

A summary of operating lease obligations is set out below. These primarily relate to minimum payments due under store lease arrangements. The majority of the store operating leases provide for the payment of base rentals plus real estate taxes, insurance, common area maintenance fees and merchant association dues. Additional information regarding Signet’s operating leases is available in Item 2 and Note 26 included in Item 8.

Long-term debt obligations comprise borrowings with an original maturity of greater than one year. It is expected that operating commitments will be funded from future operating cash flows and no additional facilities will be required to meet these obligations.

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Contractual obligations as of February 3, 2018

(in millions)	Less than one year		Between one and three years		Between three and five years		More than five years		Total
Long-term debt obligations - Principal(1)	$	31.3	$	89.4	$	205.5	$	400.0	$	726.2
Long-term debt obligations - Interest(2)	25.3		48.3		39.4		28.2		141.2
Operating lease obligations(3)	460.3		776.7		613.6		907.3		2,757.9
Capital commitments	46.9		—		—		—		46.9
Pensions	2.8		—		—		—		2.8
Commitment fee payments	1.4		2.8		0.6		—		4.8
Deferred compensation plan	3.8		7.1		8.4		18.9		38.2
Current income tax	19.6		—		—		—		19.6
Other long-term liabilities(4)	—		—		—		6.6		6.6
Total	$	591.4	$	924.3	$	867.5	$	1,361.0	$	3,744.2

⁽¹⁾  Includes principal payments on all long-term debt obligations.

⁽²⁾  Includes future interest payments on all long-term debt obligations, inclusive of both fixed- and variable-rate debt. Projected interest costs on variable rate debt were calculated using rates in effect at February 3, 2018. Amounts exclude the amortization of debt discounts, the amortization of loan fees and fees for lines of credit that would be included in interest expense in the consolidated income statements.

⁽³⁾  Operating lease obligations relate to minimum payments due under store lease arrangements. Most store operating leases require payment of real estate taxes, insurance and common area maintenance fees. Real estate taxes, insurance and common area maintenance fees were approximately 30% of base rentals for Fiscal 2018. These are not included in the table above. Some operating leases also require additional payments based on a percentage of sales.

⁽⁴⁾  Other long-term liabilities reflect loss reserves related to credit insurance services provided by insurance subsidiaries. We have reflected these payments under “Other,” as the timing of the future payments is dependent on the actual processing of the claims.

Not included in the table above are obligations under employment agreements and ordinary course purchase orders for merchandise.

IMPACT OF INFLATION

The impact of inflation on Signet’s results for the past three years has not been significant apart from the impact of the commodity costs changes, and in the UK, the impact on merchandise costs due to the currency translation of the British pound against the US dollar.

CRITICAL ACCOUNTING POLICIES

Critical accounting policies covering areas of greater complexity that are subject to the exercise of judgment due to the reliance on key estimates are listed below. A comprehensive listing of Signet’s significant accounting policies is set forth in Note 1 of the consolidated financial statements in Item 8.

Revenue recognition for extended service plans and lifetime warranty agreements (“ESP”)

The Company recognizes revenue related to lifetime warranty sales in proportion to when the expected costs will be incurred. The deferral period for lifetime warranty sales in each division 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 utilized. A significant change in estimates related to the time period or pattern in which warranty-related costs are expected to be incurred could materially impact revenues. The deferral period and recognition rates of deferred revenue related to lifetime warranty sales is determined based on multi-year patterns of claims costs; therefore, a shift in historical experience of claims cost and frequency over several periods would be required to alter the revenue recognition pattern materially. All direct costs associated with the sale of these plans are deferred and amortized in proportion to the revenue recognized.

The Sterling Jewelers division sells ESP, subject to certain conditions, to perform repair work over the life of the product. Revenue from the sale of the lifetime ESP is recognized consistent with the estimated pattern of claim costs expected to be incurred by the Company in connection with performing under the ESP obligations. Based on an evaluation of historical claims data, management currently estimates that substantially all claims will be incurred within17years of the sale of the warranty contract.

In the second quarter of Fiscal 2016, an operational change related to the Sterling Jewelers division’s ESP associated with ring sizing was made to further align Zale and Sterling ESP policies. As a result, revenue from the sale of these lifetime ESP in the Sterling Jewelers division is deferred and recognized over17years for all plans, with approximately57%of revenue recognized within the firsttwoyears for plans sold on or after May 2, 2015 (January 28, 2017: 57%) and 42%of revenue recognized within the first two years for plans sold prior to May 2, 2015 (January 28, 2017: 42%; January 30, 2016: 42%).

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The Zale division also sells ESP. Zale Jewelry customers are offered lifetime warranties on certain products that cover sizing and breakage with an option to purchase theft protection for a two-year period. Revenue from the sale of lifetime ESP is deferred and recognized over 10 years, with approximately69%of revenue recognized within the first two years (January 28, 2017: 69%; January 30, 2016: 69%).

Deferred revenue related to extended service plans, voucher promotions and other items at the end of Fiscal 2018 and Fiscal 2017 was $957.5 million and $935.9 million, respectively.

Property, plant and equipment

Property, plant and equipment are reviewed for impairment whenever events or 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, based on the Company’s internal business plans. 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. The Company utilizes historical experience, internal business plans and an appropriate discount rate to estimate the fair value. Property and equipment at stores planned for closure are depreciated over a revised estimate of their useful lives.

In Fiscal 2018, the income statement includes a charge of $1.0 million for impairment of assets as compared to $1.3 million in Fiscal 2017. Property, plant and equipment, net, totaled $877.9 million as of February 3, 2018 and $822.9 million as of January 28, 2017. Depreciation and amortization expense for Fiscal 2018 and Fiscal 2017 was $194.1 million and $175.0 million, respectively. Application of alternative assumptions, such as changes in estimates of future cash flows, could produce significantly different results. A 10% decrease in the estimated undiscounted cash flows for the stores with indicators of impairment would not have had a material impact on the Company’s results of operations in Fiscal 2018.

Goodwill and intangibles

Goodwill is evaluated for impairment annually and more frequently if indicators of impairment arise. In evaluating goodwill for impairment, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value (including goodwill). If the Company concludes that it is not more likely than not that the fair value of a reporting unit is less than its carrying value, then no further testing is required. However, if the Company concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then the two-step goodwill impairment test is performed to identify a potential goodwill impairment and measure the amount of impairment to be recognized, if any. The two-step impairment test involves estimating the fair value of all assets and liabilities of the reporting unit, including the implied fair value of goodwill, through either estimated discounted future cash flows or market-based methodologies.

The annual testing date for goodwill allocated to the Sterling Jewelers reporting unit is the last day of the fourth quarter. The annual testing date for goodwill allocated to the reporting units associated with the Zale division and the Other reporting unit is May 31. There have been no goodwill impairment charges recorded during the fiscal periods presented in the consolidated financial statements as financial results for the reporting units have met or exceeded financial projections developed at the time of the acquisitions. If future economic conditions are different than those projected by management, future impairment charges may be required. Goodwill totaled $821.7 million as of February 3, 2018 and $517.6 million as of January 28, 2017.

Intangible assets with indefinite lives are reviewed for impairment each year in the second quarter and may be reviewed more frequently if certain events occur or circumstances change. The Company first performs a qualitative assessment to determine whether it is more likely than not that the indefinite-lived intangible asset is impaired. If the Company determines that it is more likely than not that the fair value of the asset is less than its carrying amount, the Company estimates the fair value, usually determined by the estimated discounted future cash flows of the asset, compares that value with its carrying amount and records an impairment charge, if any.

During Fiscal 2018, the Company performed a quantitative assessment related to the indefinite-lived trade names held in the Zale Jewelry segment.  As of February 3, 2018, the carrying value of the trade names was $374.0 million with the approximate fair value of those trade names exceeding carrying value by approximately 5-10%. The fair value was estimated using an income-based approach based on management's estimates of forecasted cash flows, with those cash flows discounted to present value using rates commensurate with the risks associated with those cash flows. The valuations include assumptions related to sales trends, discount rates, royalty rates and other assumptions that are judgmental in nature. If future economic conditions are different than those projected by management, future impairment charges may be required.

Intangible assets with indefinite lives totaled $478.4 million as of February 3, 2018 and $404.8 million as of January 28, 2017.

During the first quarter of Fiscal 2019, the Company observed a general decline in the market valuation of the Company’s common shares which could impact the assumptions used to perform an evaluation of its indefinite-lived intangible assets, including goodwill and trade names. As of the date of this report, the estimated fair value of the reporting units and indefinite-lived trade names continues to exceed the carrying values. However, the Company will continue to monitor sales trends, interest rates, and other key inputs to the estimates of fair value. A further decline in the key inputs, especially sales trends used in the valuation of trade names, may result in an impairment charge.

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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, based on management’s evaluation of all available evidence, both positive and negative, including reversals of deferred tax liabilities, projected future taxable income and results of recent operations. The Company recorded a valuation allowance of $37.0 million and $31.5 million, as of February 3, 2018 and January 28, 2017, respectively, due to uncertainties related to the Company’s ability to utilize some of the deferred tax assets, primarily consisting of net operating losses, foreign tax credits and foreign capital losses carried forward.

The annual effective tax rate is based on annual income, statutory tax rates and tax planning strategies available in the various jurisdictions in which the Company operates. The Company does not recognize tax benefits related to positions taken on certain tax matters unless the position is more likely than not to be sustained upon examination by tax authorities. At any point in time, various tax years are subject to or are in the process of being audited by various taxing authorities. The Company records a reserve for uncertain tax positions, including interest and penalties. 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. If the reserve for uncertain tax positions decreased by 10%, the impact would be approximately $1.3 million as of February 3, 2018. See Note 10 in Item 8 for additional information regarding deferred tax assets and unrecognized tax benefits.

Accounts receivable

Accounts receivable are stated at their nominal amounts and primarily include account balances outstanding from Sterling Jewelers division 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 model scores. Subsequent to the initial financed purchase, the Company monitors the credit quality of its customer finance receivable portfolio based on payment activity driving the aging of receivables, as well as through the use of proprietary behavioral and collection models which assess each account’s probability of default based on performance on their account and regularly refreshed credit bureau attributes.

Accounts receivable under the customer finance programs are presented net of an allowance for uncollectible amounts. This allowance represents management’s estimate of the expected losses in the accounts receivable portfolio as of the balance sheet date, and is calculated using a model that analyzes factors such as delinquency rates and recovery rates.

Prior to the fourth quarter of Fiscal 2018, the Company calculated the allowance for uncollectible amounts on a recency basis. An allowance for amounts 90 days aged and under was established based on historical loss experience and payment performance information. A 100% allowance was made for any amount aged more than 90 days on a recency basis and any amount associated with an account the owner of which had filed for bankruptcy. The recency-aging methodology is based on receipt of qualifying payments which vary depending on the account status. A customer’s account ages each month five days after their due date listed on their statement, allowing for a grace period before collection efforts begin. A qualifying payment can be no less than 75% of the scheduled payment, increasing with the delinquency level. If an account holder is two payments behind, then they must make a full minimum payment to return to current status. If an account holder is three payments behind, then they must make three full payments before returning to a current status. If an account holder is more than three payments behind, then the entire past due amount is required to return to a current status. The allowance calculation is reviewed by management to assess whether, based on economic events, additional analysis is required to appropriately estimate losses inherent in the portfolio. The allowance at January 28, 2017 was $138.7 million against a gross accounts receivable balance of $2.0 billion.

In the fourth quarter of Fiscal 2018, the Company began measuring delinquency under the contractual basis which aligns with the processes and collection strategies utilized by the Company’s third party credit service provider for the remaining in-house finance receivable portfolio beginning in October 2017. Under this measure of delinquency, credit card accounts are considered delinquent if the minimum payment is not received by the specified due date. The aging method is based on the number of completed billing cycles during which the customer has failed to make a minimum payment. Management utilizes the delinquency rates identified within the portfolio when calculating the overall allowance for the portfolio.

The overall allowance continues to be based on the Company’s historical loss experience and payment performance information for accounts with similar credit quality characteristics as the remaining portfolio since the inception of the in-house consumer financing program, which was operated under the Company’s measure of delinquency and collection strategies in place prior to October 2017. As a result of the credit transaction disclosed in Note 3 of Item 8, the measure of delinquency and collection strategies have been revised to align with contractual method, which may result in different customer payment behaviors. A 100% allowance is made for accounts associated with bankrupt or deceased cardholders, as well as for accounts more than 120 days past due on the contractual basis. The Company’s policy for charging off uncollectible receivables is 180 days past due on a contractual basis.

67

Allowances for uncollectible amounts are recorded as a charge to cost of sales in the consolidated income statement. The allowance at February 3, 2018 was $113.5 million against a gross accounts receivable balance of $762.9 million. If management’s estimate of the allowance for uncollectible accounts had been different by 10% at the end of Fiscal 2018, cost of sales would have been impacted by approximately $11.4 million.

Accounting changes and recent accounting standards

For a description of accounting changes and recent accounting standards, including the expected dates of adoption and estimated effects, if any, on our consolidated financial statements, see Note 2 in Item 8 of this Annual Report on Form 10-K.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Signet is exposed to market risk arising from fluctuations in foreign currency exchange rates, interest rates and precious metal prices, which could affect its consolidated financial position, earnings and cash flows. Signet monitors and manages these market exposures as a fundamental part of its overall risk management program, which recognizes the volatility of financial markets and seeks to reduce the potentially adverse effects of this volatility on Signet’s operating results. Signet manages its exposure to market risk through its regular operating and financing activities and, when deemed appropriate, through the use of derivative financial instruments. Signet uses derivative financial instruments as risk management tools and not for trading purposes.

As certain of the UK Jewelry division’s purchases are denominated in US dollars and its net cash flows are in British pounds, Signet’s policy is to enter into forward foreign currency exchange contracts and foreign currency swaps to manage the exposure to the US dollar. Signet also hedges a significant portion of forecasted merchandise purchases using commodity forward contracts. Additionally, the Zale division occasionally enters into forward foreign currency exchange contracts to manage the currency fluctuations associated with purchases for our Canadian operations. These contracts are entered into with large, reputable financial institutions, thereby minimizing the credit exposure from our counterparties.

Signet has significant amounts of cash and cash equivalents invested at several financial institutions. The amount invested at each financial institution takes into account the long-term credit rating and size of the financial institution. The interest rates earned on cash and cash equivalents will fluctuate in line with short-term interest rates.

MARKET RISK MANAGEMENT POLICY

A committee of the Board is responsible for the implementation of market risk management policies within the treasury policies and guidelines framework, which are deemed to be appropriate by the Board for the management of market risk.

Signet’s exposure to market risk is managed by Signet’s Treasury Committee, consisting of Signet’s Chief Executive Officer, Chief Financial Officer, Senior Vice President - Tax and Treasury, and Senior Vice President - Controller. Where deemed necessary to achieve the objective of reducing market risk volatility on Signet’s operating results, certain derivative instruments are entered into after review and approval by the Treasury Committee. Signet uses derivative financial instruments for risk management purposes only.

A description of Signet’s accounting policies for derivative instruments is included in Note 1 of Item 8. Signet’s current portfolio of derivative financial instruments consists of an interest rate swap, forward foreign currency exchange contracts and commodity forward purchase contracts. An analysis quantifying the fair value change in derivative financial instruments held by Signet to manage its exposure to interest rates, foreign exchange rates and commodity prices is detailed in Note 18 of Item 8.

Foreign Currency Exchange Rate Risk

Approximately 89% of Signet’s total assets were held in entities whose functional currency is the US dollar at February 3, 2018 and generated approximately 86% of its sales and 94% of its operating income in US dollars in Fiscal 2018. All remaining assets, sales and operating income are in UK British pounds and Canadian dollars.

In translating the results of the UK Jewelry division and the Canadian subsidiary of the Zale Jewelry segment, Signet’s results are subject to fluctuations in the exchange rates between the US dollar and both the British pound and Canadian dollar. Any depreciation in the weighted average value of the US dollar against the British pound or Canadian dollar could increase reported revenues and operating profit and any appreciation in the weighted average value of the US dollar against the British pound or Canadian dollar could decrease reported revenues and operating profit.

The UK Jewelry division buys certain products and materials on international markets that are priced in US dollars, and therefore has an exposure to exchange rates on the cost of goods sold. Signet uses certain derivative financial instruments to hedge a portion of this exposure within treasury guidelines approved by the Board.

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

68

Commodity Price Risk

Signet’s results are subject to fluctuations in the cost of diamonds, gold and certain other precious metals which are key raw material components of the products sold by Signet.

It is Signet’s policy to minimize the impact of precious metal commodity price volatility on operating results through the use of commodity forward purchase contracts, or by entering into either purchase options or net zero-cost collar arrangements, within treasury guidelines approved by the Board.

Interest Rate Risk

Signet’s interest income or expense is exposed to volatility in interest rates. This exposure is driven by both the currency denomination of the cash or debt, the mix of fixed and floating rate debt used, the type of cash investments and the total amount of cash and debt outstanding. As of February 3, 2018, a hypothetical 100 basis point increase in interest rates would result in additional annual interest expense of approximately $0.8 million, including the effect of the interest rate swap designated as a cash flow hedge.

Sensitivity Analysis

Management has used a sensitivity analysis technique that measures the change in the fair value of Signet’s financial instruments from hypothetical changes in market rates as shown in the table below.

Fair value changes arising from:

(in millions)	Fair Value February 3, 2018			10 basis point decrease in interest rates			10% depreciation  of $ against £			10% depreciation  of $ against C$			10% depreciation  of gold prices			Fair Value January 28, 2017
Foreign exchange contracts	$	(2.3	)	$	—		$	(2.9	)	$	(5.7	)	$	—		$	3.0
Commodity contracts	(0.1		)	—			—			—			(0.8		)	(3.4		)
Interest rate swap	2.2			(0.3		)	—			—			—			0.4

The amounts generated from the sensitivity analysis quantify the impact of market risk assuming that certain adverse market conditions, specified in the table above, occur. They are not forward-looking estimates of market risk. Actual results in the future are likely to differ materially from those projected due to changes in the portfolio of financial instruments held and actual developments in the global financial markets.

Any changes in the portfolio of financial instruments held and developments in the global financial markets may cause fluctuations in interest rates, exchange rates and precious metal prices to exceed the hypothetical amounts disclosed in the table above. The sensitivity scenarios are intended to allow an expected risk measure to be applied to the scenarios, as opposed to the scenarios themselves being an indicator of the maximum expected risk.

The fair value of derivative financial instruments is determined based on market value equivalents at period end, taking into account the current interest rate environment, current foreign currency forward rates or current commodity forward rates.

The estimated changes in the fair value for foreign exchange rates are based on a 10% depreciation of the US dollar against British pound and Canadian dollar from the levels applicable at February 3, 2018 with all other variables remaining constant.

69

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors

Signet Jewelers Limited:

Opinions on the Consolidated Financial Statements and Internal Control Over Financial Reporting

We have audited the accompanying consolidated balance sheets of Signet Jewelers Limited and subsidiaries (the “Company”) as of February 3, 2018 and January 28, 2017, and the related consolidated income statements, statements of comprehensive income, statements of cash flows, and statements of shareholders’ equity for the 53 week period ended February 3, 2018, and the 52 week periods ended January 28, 2017 and January 30, 2016, and the related notes (collectively, the “consolidated financial statements”). We also have audited the Company’s internal control over financial reporting as of February 3, 2018, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of February 3, 2018 and January 28, 2017, and the results of its operations and its cash flows for the 53 week period ended February 3, 2018, and 52 week periods ended January 28, 2017 and January 30, 2016, in conformity with U.S. generally accepted accounting principles. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of February 3, 2018, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

Basis for Opinion

The Company’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 Item 9A. Our responsibility is to express an opinion on the Company’s consolidated financial statements and an opinion on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. Federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. 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.

Definition and Limitations of Internal Control Over Financial Reporting

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.

/s/ KPMG LLP

We have served as the Company’s auditor since 2011.

Cleveland, Ohio

April 2, 2018

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SIGNET JEWELERS LIMITED

CONSOLIDATED INCOME STATEMENTS

(in millions, except per share amounts)	Fiscal 2018			Fiscal 2017			Fiscal 2016			Notes
Sales	$	6,253.0		$	6,408.4		$	6,550.2		5
Cost of sales	(4,063.0		)	(4,047.6		)	(4,109.8		)
Gross margin	2,190.0			2,360.8			2,440.4
Selling, general and administrative expenses	(1,872.2		)	(1,880.2		)	(1,987.6		)
Credit transaction, net	1.3			—			—			3
Other operating income, net	260.8			282.6			250.9			11
Operating income	579.9			763.2			703.7			5
Interest expense, net	(52.7		)	(49.4		)	(45.9		)
Income before income taxes	527.2			713.8			657.8
Income taxes	(7.9		)	(170.6		)	(189.9		)	10
Net income	519.3			543.2			467.9
Dividends on redeemable convertible preferred shares	(32.9		)	(11.9		)	—			7
Net income attributable to common shareholders	$	486.4		$	531.3		$	467.9
Earnings per common share:
Basic	$	7.72		$	7.13		$	5.89		8
Diluted	$	7.44		$	7.08		$	5.87		8
Weighted average common shares outstanding:
Basic	63.0			74.5			79.5			8
Diluted	69.8			76.7			79.7			8
Dividends declared per common share	$	1.24		$	1.04		$	0.88		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 2018									Fiscal 2017									Fiscal 2016
(in millions)	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
Net income							$	519.3								$	543.2								$	467.9
Other comprehensive income (loss):
Foreign currency translation adjustments	50.9			—			50.9			(25.6		)	—			(25.6		)	(40.2		)	—			(40.2		)
Available-for-sale securities:
Unrealized gain (loss)	0.5			(0.2		)	0.3			—			—			—			(0.7		)	0.3			(0.4		)
Cash flow hedges:
Unrealized gain (loss)	3.4			(1.6		)	1.8			8.8			(1.9		)	6.9			(17.2		)	5.4			(11.8		)
Reclassification adjustment for losses to net income	(4.6		)	1.1			(3.5		)	(0.7		)	0.1			(0.6		)	4.9			(1.4		)	3.5
Pension plan:
Actuarial gain (loss)	—			—			—			(16.9		)	3.3			(13.6		)	13.8			(2.9		)	10.9
Reclassification adjustment to net income for amortization of actuarial losses	2.8			(0.6		)	2.2			1.5			(0.3		)	1.2			3.4			(0.7		)	2.7
Prior service costs	(0.6		)	0.1			(0.5		)	(0.5		)	0.1			(0.4		)	(0.6		)	0.1			(0.5		)
Reclassification adjustment to net income for amortization of net prior service credits	(1.4		)	0.3			(1.1		)	(1.9		)	0.4			(1.5		)	(2.2		)	0.5			(1.7		)
Net curtailment gain and settlement loss	(3.7		)	0.7			(3.0		)	—			—			—			—			—			—
Total other comprehensive (loss) income	$	47.3		$	(0.2	)	$	47.1		$	(35.3	)	$	1.7		$	(33.6	)	$	(38.8	)	$	1.3		$	(37.5	)
Total comprehensive income							$	566.4								$	509.6								$	430.4

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

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SIGNET JEWELERS LIMITED

CONSOLIDATED BALANCE SHEETS

(in millions, except par value per share amount)	February 3, 2018			January 28, 2017			Notes
Assets							2
Current assets:
Cash and cash equivalents	$	225.1		$	98.7		1
Accounts receivable, net	692.5			1,858.0			12
Other receivables	87.2			95.9
Other current assets	158.2			136.3
Income taxes	2.6			4.4
Inventories	2,280.5			2,449.3			13
Total current assets	3,446.1			4,642.6
Non-current assets:
Property, plant and equipment, net	877.9			822.9			14
Goodwill	821.7			517.6			15
Intangible assets, net	481.5			417.0			15
Other assets	171.2			165.1			16
Deferred tax assets	1.4			0.7			10
Retirement benefit asset	39.8			31.9			20
Total assets	$	5,839.6		$	6,597.8
Liabilities and Shareholders’ equity
Current liabilities:
Loans and overdrafts	$	44.0		$	91.1		21
Accounts payable	237.0			255.7
Accrued expenses and other current liabilities	448.0			478.2			22
Deferred revenue	288.6			276.9			23
Income taxes	19.6			101.8
Total current liabilities	1,037.2			1,203.7
Non-current liabilities:
Long-term debt	688.2			1,317.9			21
Other liabilities	239.6			213.7			24
Deferred revenue	668.9			659.0			23
Deferred tax liabilities	92.3			101.4			10
Total liabilities	2,726.2			3,495.7
Commitments and contingencies							26
Series A redeemable convertible preferred shares of $0.01 par value: 500 shares authorized, 0.625 shares outstanding	613.6			611.9			6
Shareholders’ equity:
Common shares of $0.18 par value: authorized 500 shares, 60.5 shares outstanding (2017: 68.3 outstanding)	15.7			15.7			7
Additional paid-in capital	290.2			280.7
Other reserves	0.4			0.4
Treasury shares at cost: 26.7 shares (2017: 18.9 shares)	(1,942.1		)	(1,494.8		)	7
Retained earnings	4,396.2			3,995.9			7
Accumulated other comprehensive loss	(260.6		)	(307.7		)	9
Total shareholders’ equity	2,499.8			2,490.2
Total liabilities, redeemable convertible preferred shares and shareholders’ equity	$	5,839.6		$	6,597.8

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

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SIGNET JEWELERS LIMITED

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)	Fiscal 2018			Fiscal 2017			Fiscal 2016
Cash flows from operating activities:
Net income	$	519.3		$	543.2		$	467.9
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	203.4			188.8			175.3
Amortization of unfavorable leases and contracts	(13.0		)	(19.7		)	(28.7		)
Pension benefit	(3.5		)	(1.6		)	—
Share-based compensation	16.1			8.0			16.4
Deferred taxation	(33.4		)	27.7			25.0
Excess tax benefit from exercise of share awards	—			(2.4		)	(6.9		)
Amortization of debt discount and issuance costs	3.7			2.8			3.6
Credit transaction, net	(30.9		)	—			—
Other non-cash movements	2.4			0.4			3.6
Changes in operating assets and liabilities:
Decrease (increase) in accounts receivable	242.1			(102.7		)	(189.8		)
Proceeds from sale of in-house finance receivables	952.5			—			—
Decrease (increase) in other receivables and other assets	11.0			(20.4		)	(44.1		)
(Increase) decrease in other current assets	(17.0		)	13.5			(26.5		)
Decrease (increase) in inventories	210.9			(9.7		)	(46.0		)
Decrease in accounts payable	(51.4		)	(7.0		)	(6.4		)
Increase (decrease) in accrued expenses and other liabilities	3.9			(21.8		)	51.8
Increase in deferred revenue	10.0			43.6			76.3
(Decrease) increase in income taxes payable	(82.4		)	38.9			(25.7		)
Pension plan contributions	(3.2		)	(3.3		)	(2.5		)
Net cash provided by operating activities	1,940.5			678.3			443.3
Investing activities
Purchase of property, plant and equipment	(237.4		)	(278.0		)	(226.5		)
Purchase of available-for-sale securities	(2.4		)	(10.4		)	(6.2		)
Proceeds from sale of available-for-sale securities	2.2			10.0			4.0
Acquisition of R2Net Inc., net of cash acquired	(331.8		)	—			—
Net cash used in investing activities	(569.4		)	(278.4		)	(228.7		)
Financing activities
Dividends paid on common shares	(76.5		)	(75.6		)	(67.1		)
Dividends paid on redeemable convertible preferred shares	(34.7		)	—			—
Repurchase of common shares	(460.0		)	(1,000.0		)	(130.0		)
Proceeds from issuance of common shares	0.3			2.1			5.0
Proceeds from issuance of redeemable convertible preferred shares, net of issuance costs	—			611.3			—
Net settlement of equity based awards	(2.9		)	(4.9		)	(8.3		)
Excess tax benefit from exercise of share awards	—			2.4			6.9
Proceeds from term and bridge loans	350.0			—			—
Repayments of term and bridge loans	(372.3		)	(16.4		)	(25.0		)
Proceeds from securitization facility	1,745.9			2,404.1			2,303.9
Repayments of securitization facility	(2,345.9		)	(2,404.1		)	(2,303.9		)
Proceeds from revolving credit facility	814.0			1,270.0			316.0
Repayments of revolving credit facility	(870.0		)	(1,214.0		)	(316.0		)
Payment of debt issuance costs	(1.4		)	(2.7		)	—
Principal payments under capital lease obligations	—			(0.2		)	(1.0		)
Repayments of bank overdrafts	(0.1		)	(10.2		)	(47.1		)
Net cash used in financing activities	(1,253.6		)	(438.2		)	(266.6		)
Cash and cash equivalents at beginning of period	98.7			137.7			193.6
Increase (decrease) in cash and cash equivalents	117.5			(38.3		)	(52.0		)
Effect of exchange rate changes on cash and cash equivalents	8.9			(0.7		)	(3.9		)
Cash and cash equivalents at end of period	$	225.1		$	98.7		$	137.7
Non-cash investing activities:
Capital expenditures in accounts payable	$	7.0		$	9.2		$	9.3
Supplemental cash flow information:
Interest paid	$	50.2		$	47.1		$	41.6
Income taxes paid	$	122.3		$	104.0		$	180.1

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

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SIGNET JEWELERS LIMITED

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(in millions)	Common shares at par value		Additional paid-in capital			Other reserves		Treasury shares			Retained earnings			Accumulated other comprehensive (loss) income			Total shareholders’ equity
Balance at January 31, 2015	$	15.7	$	265.2		$	0.4	$	(370.0	)	$	3,135.7		$	(236.6	)	$	2,810.4
Net income	—		—			—		—			467.9			—			467.9
Other comprehensive loss	—		—			—		—			—			(37.5		)	(37.5		)
Dividends on common shares	—		—			—		—			(70.2		)	—			(70.2		)
Repurchase of common shares	—		—			—		(130.0		)	—			—			(130.0		)
Net settlement of equity based awards	—		(1.5		)	—		(1.1		)	1.3			—			(1.3		)
Share options exercised	—		(0.2		)	—		5.3			(0.1		)	—			5.0
Share-based compensation expense	—		16.4			—		—			—			—			16.4
Balance at January 30, 2016	15.7		279.9			0.4		(495.8		)	3,534.6			(274.1		)	3,060.7
Net income	—		—			—		—			543.2			—			543.2
Other comprehensive loss	—		—			—		—			—			(33.6		)	(33.6		)
Dividends on common shares	—		—			—		—			(75.9		)	—			(75.9		)
Dividends on redeemable convertible preferred shares	—		—			—		—			(11.9		)	—			(11.9		)
Repurchase of common shares	—		—			—		(1,000.0		)	—			—			(1,000.0		)
Net settlement of equity based awards	—		(7.2		)	—		(1.1		)	5.9			—			(2.4		)
Share options exercised	—		—			—		2.1			—			—			2.1
Share-based compensation expense	—		8.0			—		—			—			—			8.0
Balance at January 28, 2017	15.7		280.7			0.4		(1,494.8		)	3,995.9			(307.7		)	2,490.2
Net income	—		—			—		—			519.3			—			519.3
Other comprehensive income	—		—			—		—			—			47.1			47.1
Dividends on common shares	—		—			—		—			(77.5		)	—			(77.5		)
Dividends on redeemable convertible preferred shares	—		—			—		—			(32.9		)	—			(32.9		)
Repurchase of common shares	—		—			—		(460.0		)	—			—			(460.0		)
Net settlement of equity based awards	—		(6.5		)	—		12.3			(8.6		)	—			(2.8		)
Share options exercised	—		(0.1		)	—		0.4			—			—			0.3
Share-based compensation expense	—		16.1			—		—			—			—			16.1
Balance at February 3, 2018	$	15.7	$	290.2		$	0.4	$	(1,942.1	)	$	4,396.2		$	(260.6	)	$	2,499.8

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. Organization and summary of significant accounting policies

Signet Jewelers Limited (“Signet” or the “Company”), a holding company incorporated in Bermuda, is the world’s largest retailer of diamond jewelry. The Company operates through its 100% owned subsidiaries with sales primarily in the United States (“US”), United Kingdom (“UK”) and Canada. Signet manages its business as five reportable segments: the Sterling Jewelers division, the Zale division, which consists of the Zale Jewelry and Piercing Pagoda segments, the UK Jewelry division and Other. The “Other” reportable segment consists of all non-reportable segments, including subsidiaries involved in the purchasing and conversion of rough diamonds to polished stones and unallocated corporate administrative functions. See Note 5 for additional discussion of the Company’s segments.

On September 12, 2017, the Company completed the acquisition of R2Net Inc., a Delaware corporation (“R2Net”). See Note 4 for additional information regarding the acquisition.

In October 2017, the Company, through its subsidiary Sterling Jewelers Inc. (“Sterling”), completed the sale of the prime-only quality portion of Sterling’s in-house finance receivable portfolio to Comenity Bank (“Comenity”). See Note 3 for additional information regarding the transaction.

Signet’s sales are seasonal, with the first quarter slightly exceeding 20%of annual sales, the second and third quarters each approximating20%and the fourth quarter accounting for almost 40%of annual sales, with December being by far the most important month of the year. The “Holiday Season” consists of results for the months of November and December. As a result, approximately 45% to 55%of Signet’s annual operating income normally occurs in the fourth quarter, comprised of nearly all of the UK Jewelry and Zale divisions’ annual operating income and about 40% to 45%of the Sterling Jewelers division’s annual operating income.

The Company has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued. There are no material related party transactions. The following accounting policies have been applied consistently in the preparation of the Company’s financial statements.

(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 for the 53 week period endedFebruary 3, 2018 (“Fiscal 2018”), as Signet’s fiscal year ends on the Saturday nearest to January 31. The comparative periods are for the 52 week period endedJanuary 28, 2017 (“Fiscal 2017”) and the 52 week period endedJanuary 30, 2016 (“Fiscal 2016”). Intercompany transactions and balances have been eliminated in consolidation. Certain prior year amounts have been reclassified to conform to the current year presentation.

(b) Use of estimates

The preparation of these consolidated financial statements, in conformity with US GAAP and US Securities and Exchange Commission (“SEC”) regulations, 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 reported period. Actual results could differ from those estimates. Estimates and assumptions are primarily made in relation to the valuation of accounts receivable, inventories, deferred revenue, derivatives, employee benefits, income taxes, contingencies, asset impairments, indefinite-lived intangible assets, as well as depreciation and amortization of long-lived assets.

The reported results of operations are not indicative of results expected in future periods.

(c) Foreign currency translation

The financial position and operating results of certain foreign operations, including the UK Jewelry division and the Canadian operations of the Zale Jewelry segment, are consolidated using the local currency as the functional currency. Assets and liabilities are translated at the rates of exchange on the balance sheet date, and revenues and expenses are translated at the monthly average rates of exchange during the period. Resulting translation gains or losses are included in the accompanying consolidated statements of shareholders’ equity as a component of accumulated other comprehensive income (loss) (“AOCI”). Gains or losses resulting from foreign currency transactions are included within the consolidated income statements, whereas translation adjustments and gains or losses related to intercompany loans of a long-term investment nature are recognized as a component of AOCI.

See Note 9 for additional discussion of the Company’s foreign currency translation.

(d) Revenue recognition

The Company recognizes revenue when there is persuasive evidence of an arrangement, delivery of products has occurred or services have been rendered, the sale price is fixed and determinable, and collectability is reasonably assured. The Company’s revenue streams and their respective accounting treatments are discussed below.

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Merchandise sale and repairs

Store sales are recognized when the customer receives and pays for the merchandise at the store with cash, in-house customer finance, private label credit card programs, a third party credit card or a lease purchase option. For online sales shipped to customers, 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. Revenues on the sale of merchandise are 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. Revenues derived from providing replacement merchandise on behalf of insurance organizations are recognized upon receipt of the merchandise by the customer. Revenues on repair of merchandise are recognized when the service is complete and the customer collects the merchandise at the store.

Extended service plans and lifetime warranty agreements (“ESP”)

The Company recognizes revenue related to ESP sales in proportion to when the expected costs will be incurred. The deferral period for ESP sales in each division 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 utilized. A significant change in estimates related to the time period or pattern in which warranty-related costs are expected to be incurred could materially impact revenues. 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 in the consolidated balance sheets.

The Sterling Jewelers division sells ESP, subject to certain conditions, to perform repair work over the life of the product. Revenue from the sale of the lifetime ESP is recognized consistent with the estimated pattern of claim costs expected to be incurred by the Company in connection with performing under the ESP obligations. Based on an evaluation of historical claims data, management currently estimates that substantially all claims will be incurred within17years of the sale of the warranty contract.

In the second quarter of Fiscal 2016, an operational change related to the Sterling Jewelers division’s ESP associated with ring sizing was made to further align Zale and Sterling ESP policies. As a result, revenue from the sale of these lifetime ESP in the Sterling Jewelers division is deferred and recognized over17years for all plans, with approximately57%of revenue recognized within the firsttwoyears for plans sold on or after May 2, 2015 (January 28, 2017: 57%; January 30, 2016: 57%) and 42%of revenue recognized within the first two years for plans sold prior to May 2, 2015 (January 28, 2017: 42%; January 30, 2016: 42%).

The Zale division also sells ESP. Zale Jewelry customers are offered lifetime warranties on certain products that cover sizing and breakage with an option to purchase theft protection for a two-year period. Revenue from the sale of lifetime ESP is deferred and recognized over 10 years, with approximately69%of revenue recognized within the first two years (January 28, 2017: 69%; January 30, 2016: 69%). Revenues related to the optional theft protection are deferred and recognized in proportion to when the expected claims costs will be incurred over the two-year contract period. Zale Jewelry customers are also offered a two-year watch warranty and a one-year warranty that covers breakage. Piercing Pagoda customers are also offered a one-year warranty that covers breakage. Revenue from the two-year watch warranty and one-year breakage warranty is recognized on a straight-line basis over the respective contract terms.

The Sterling Jewelers division also sells a Jewelry Replacement Plan (“JRP”). The JRP is designed to protect customers from damage or defects of purchased merchandise for a period of three years. If the purchased merchandise is defective or becomes damaged under normal use in that time period, the item will be replaced. JRP revenue is deferred and recognized on a straight-line basis over the period of expected claims costs.

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 sale less an estimate of cancellations based on historical experience.

Sale vouchers

Certain promotional offers award sale vouchers to customers who make purchases above a certain value, which grant a fixed discount on a future purchase 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 using the relative-selling-price method. Sale vouchers are not sold on a stand-alone basis. The fair value of the voucher is determined based on the average sales transactions in which the vouchers were issued, when the vouchers are expected to be redeemed and the estimated voucher redemption rate. The fair value allocated to the future purchase is recorded as deferred revenue.

Consignment inventory sales

Sales of consignment inventory are accounted for on a gross sales basis as the Company is the primary obligor providing independent advice, guidance and after-sales service to customers. The products sold from consignment inventory are indistinguishable from other products that are sold to customers and are sold on the same terms. Supplier products are selected at the discretion of the Company. The Company is responsible for determining the selling price, physical security of the products and collections of accounts receivable.

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(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 stores inclusive of payroll, inventory shrinkage, store operating and occupancy costs, net bad debts and charges for late payments under the 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 and cost of in-house credit prior to the Company’s outsourcing initiatives and third-party servicing of receivables subsequent to the outsourcing initiative; advertising and promotional costs and other operating expenses not specifically categorized elsewhere in the consolidated income statements.

Compensation and benefits costs included within cost of sales and selling, general and administrative expenses were as follows:

(in millions)	Fiscal 2018		Fiscal 2017		Fiscal 2016
Wages and salaries	$	1,140.3	$	1,183.2	$	1,222.8
Payroll taxes	93.8		96.5		101.1
Employee benefit plans	13.0		19.3		17.5
Share-based compensation	16.1		8.0		16.4
Total compensation and benefits	$	1,263.2	$	1,307.0	$	1,357.8

(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 catalogs 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 $360.5 million in Fiscal 2018 (Fiscal 2017: $380.6 million; Fiscal 2016: $384.2 million).

(h) In-house customer finance programs

Sterling Jewelers division operates customer in-house finance programs that allow customers to finance merchandise purchases from its stores. Finance charges are recognized in accordance with the contractual agreements. Gross interest earned is recorded as other operating income in the consolidated income statements. See Note 11 for additional discussion of the Company’s other operating income. In addition to interest-bearing accounts, a portion of credit sales are made using interest-free financing for one year or less, subject to certain conditions.

Prior to the fourth quarter of Fiscal 2018, the accrual of interest was suspended when accounts became more than 90 days aged on a recency basis. Upon suspension of the accrual of interest, interest income was subsequently recognized to the extent cash payments are received. Accrual of interest was resumed when receivables are removed from the non-accrual status.

As a result of the credit transaction in Note 3, including the processes utilized by the service provider for the Company’s remaining in-house finance receivable portfolio, it is the Company’s policy to suspend the accrual of interest when accounts become more than 120 days past due on a contractual basis.

(i) 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, based on management’s evaluation of all available evidence, both positive and negative, including reversals of deferred tax liabilities, projected future taxable income and results of recent operations.

The Company does not recognize tax benefits related to positions taken on certain tax matters unless the position is more likely than not to be sustained upon examination by tax authorities. At any point in time, various tax years are subject to or are in the process of being audited by various taxing authorities. The Company records a reserve for uncertain tax positions, including interest and penalties. 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.

See Note 10 for additional discussion of the Company’s income taxes.

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(j) Cash and cash equivalents

Cash and cash equivalents are comprised of cash on hand, money market deposits and amounts placed with external fund managers with an original maturity of three months or less. Cash and cash equivalents 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.

The following table summarizes the details of the Company’s cash and cash equivalents:

(in millions)	February 3, 2018		January 28, 2017
Cash and cash equivalents held in money markets and other accounts	$	182.6	$	65.6
Cash equivalents from third-party credit card issuers	40.5		31.1
Cash on hand	2.0		2.0
Total cash and cash equivalents	$	225.1	$	98.7

(k) Accounts receivable

Accounts receivable under the customer finance programs are presented net of an allowance for uncollectible amounts. This allowance represents management’s estimate of the expected losses in the accounts receivable portfolio as of the balance sheet date, and is calculated using a model that analyzes factors such as delinquency rates and recovery rates.

Prior to the fourth quarter of Fiscal 2018, the Company calculated the allowance for uncollectible amounts as follows:

• Record an allowance for amounts under 90 days aged on a recency measure of delinquency based on historical loss experience and payment performance information. The recency method measured the delinquency level by the number of days since the last qualifying payment was received, with the qualifying payment increasing with delinquency level.

• Record a 100% allowance for any amount aged more than 90 days on a recency measure of delinquency and any amount associated with an account the owner of which has filed for bankruptcy.

Signet’s recency method of aging had been in place and unchanged since the inception of the in-house consumer financing program. The delinquency level was measured by the number of days since the last qualifying payment was received, with the qualifying payment increasing with delinquency level. The minimum payment does not decline as the balance declines.

In the fourth quarter of Fiscal 2018, the Company began measuring delinquency under the contractual basis which aligns with the processes and collection strategies utilized by the Company’s third party credit service provider for the remaining in-house finance receivable portfolio beginning in October 2017. Under this measure of delinquency, credit card accounts are considered delinquent if the minimum payment is not received by the specified due date. The aging method is based on the number of completed billing cycles during which the customer has failed to make a minimum payment. Management utilizes the delinquency rates identified within the portfolio when calculating the overall allowance for the portfolio.

The overall allowance continues to be based on the Company’s historical loss experience and payment performance information for accounts with similar credit quality characteristics as the remaining portfolio since the inception of the in-house consumer financing program, which was operated under the Company’s aging and collection methodologies in place prior to October 2017. As a result of the credit transaction disclosed in Note 3, the aging and collection methodologies have been revised to align with contractual method, which may result in different customer payment behaviors. A 100% allowance is made for accounts associated with bankrupt or deceased cardholders, as well as for accounts more than 120 days past due on the contractual basis. The Company’s policy for charging off uncollectible receivables is 180 days.

See Note 12 for additional discussion of the Company’s accounts receivables.

(l) Inventories

Inventories are primarily held for resale and are valued at the lower of cost or net realizable value. Cost is determined using weighted-average cost for all inventories except for inventories held in the Company’s diamond sourcing operations, where cost is determined using specific identification. Cost includes charges directly related to bringing inventory to its present location and condition. Such charges would include warehousing, security, distribution and certain buying costs. Net realizable value is defined as estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Inventory reserves are recorded for obsolete, slow moving or defective items and shrinkage. Inventory reserves for obsolete, slow moving or defective items are calculated as the difference between the cost of inventory and its estimated market value based on targeted inventory turn rates, future demand, management strategy and market conditions. Due to the inventory being primarily comprised of precious stones and metals including gold, the age of the inventory has a limited impact on the estimated market value. Inventory reserves for shrinkage are 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.

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See Note 13 for additional discussion of the Company’s inventories.

(m) 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, contributions are matched against the costs of promotions. Vendor contributions received as general contributions and not related to specific promotional events are recognized as a reduction of inventory costs.

(n) Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation, amortization and impairment charges. 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 and software	Ranging from 3 – 5 years

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 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 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, based on the Company’s internal business plans. 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. The Company utilizes historical experience, internal business plans and an appropriate discount rate to estimate the fair value. Property and equipment at stores planned for closure are depreciated over a revised estimate of their useful lives.

See Note 14 for additional discussion of the Company’s property, plant and equipment.

(o) Goodwill and intangibles

In a business combination, the Company estimates and records the fair value of identifiable intangible assets and liabilities acquired. The fair value of these intangible assets and liabilities is estimated based on management’s assessment, including determination of appropriate valuation technique and consideration of any third party appraisals, when necessary. Significant estimates in valuing intangible assets and liabilities acquired include, but are not limited to, future expected cash flows associated with the acquired asset or liability, expected life and discount rates. The excess purchase price over the estimated fair values of the assets acquired and liabilities assumed is recognized as goodwill. Goodwill is recorded by the Company’s reporting units based on the acquisitions made by each. Goodwill is evaluated for impairment annually and more frequently if indicators of impairment arise. In evaluating goodwill for impairment, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value (including goodwill). If the Company concludes that it is not more likely than not that the fair value of a reporting unit is less than its carrying value, then no further testing is required. However, if the Company concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then the two-step goodwill impairment test is performed to identify a potential goodwill impairment and measure the amount of impairment to be recognized, if any. The two-step impairment test involves estimating the fair value of all assets and liabilities of the reporting unit, including the implied fair value of goodwill, through either estimated discounted future cash flows or market-based methodologies.

The annual testing date for goodwill allocated to the Sterling Jewelers reporting unit is the last day of the fourth quarter. The annual testing date for goodwill allocated to the reporting units associated with the Zale division and the Other reporting unit is May 31. There have been no goodwill impairment charges recorded during the fiscal periods presented in the consolidated financial statements as financial results for the reporting units have met or exceeded financial projections developed at the time of the acquisitions. If future economic conditions are different than those projected by management, future impairment charges may be required.

Intangible assets with definite lives are amortized and reviewed for impairment whenever events or circumstances indicate that the carrying amount of the asset may not be recoverable. If the estimated undiscounted future cash flows related to the asset are less than the carrying amount, the Company recognizes an impairment charge equal to the difference between the carrying value and the estimated fair value, usually determined by the estimated discounted future cash flows of the asset.

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Intangible assets with indefinite lives are reviewed for impairment each year in the second quarter and may be reviewed more frequently if certain events occur or circumstances change. The Company first performs a qualitative assessment to determine whether it is more likely than not that the indefinite-lived intangible asset is impaired. If the Company determines that it is more likely than not that the fair value of the asset is less than its carrying amount, the Company estimates the fair value, usually determined by the estimated discounted future cash flows of the asset, compares that value with its carrying amount and records an impairment charge, if any. If future economic conditions are different than those projected by management, future impairment charges may be required.

See Note 15 for additional discussion of the Company’s goodwill and intangibles.

(p) Derivatives and hedge accounting

The Company 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 net income or other comprehensive income (“OCI”), depending on whether the derivative qualifies as an effective hedge.

If a derivative instrument meets certain criteria, it may be designated as a cash flow hedge on the date it is entered into. For cash flow hedge transactions, the effective portion of the changes in fair value of the derivative instrument is recognized directly in equity as a component of AOCI 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 AOCI should be immediately recognized in net income. Cash flows from derivative contracts are included in net cash provided by operating activities.

See Note 18 for additional discussion of the Company’s derivatives and hedge activities.

(q) 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 consolidated income statements.

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 projected benefit obligation measured at the balance sheet date. Gains or losses and prior service costs or credits that arise and are not included as components of net periodic pension cost are recognized, net of tax, in OCI.

Signet also operates a defined contribution plan in the UK and a defined contribution 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 consolidated income statements as incurred.

See Note 20 for additional discussion of the Company’s employee benefits.

(r) Borrowing costs

Borrowings include interest-bearing bank loans, accounts receivable securitization program and bank overdrafts. Borrowing costs are capitalized and amortized into interest expense over the contractual term of the related loan.

See Note 21 for additional discussion of the Company’s borrowing costs.

(s) 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 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.

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Signet estimates fair value using a Black-Scholes model for awards granted under the Omnibus Plan and the binomial valuation model for awards granted under the Share Saving Plans. 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.

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

See Note 25 for additional discussion of the Company’s share-based compensation plans.

(t) 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.

See Note 26 for additional discussion of the Company’s contingencies.

(u) Leases

Signet’s operating leases generally include retail store locations. Certain operating leases include predetermined rent increases, which 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, such as contingent rentals, taxes and common area maintenance, 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. In addition, 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.

See Note 26 for additional discussion of the Company’s leases.

(v) Dividends

Dividends on common shares are reflected as a reduction of retained earnings in the period in which they are formally declared by the Board of Directors (the “Board”). In addition, the cumulative dividends on preferred shares, whether or not declared, are reflected as a reduction of retained earnings.

2. New accounting pronouncements

New accounting pronouncements adopted during the period

Inventory

In July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory.” The new guidance states that inventory will be measured at the lower of cost and net realizable value. The ASU defines net realizable value as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The adoption of this guidance in the first quarter of Fiscal 2018 did not have a material impact on the Company’s financial position or results of operations.

Share-based compensation

In March 2016, the FASB issued ASU No. 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” The new guidance simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The Company adopted all aspects of this guidance prospectively in the first quarter of Fiscal 2018 with a policy election to continue to estimate expected forfeitures in determining the amount of share-based compensation expense to be recognized. The adoption of this guidance did not have a material impact on the Company’s financial position or results of operations. See Note 25 for additional information regarding the impact on the Company’s results of operations in the first quarter of Fiscal 2018.

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New accounting pronouncements to be adopted in future periods

Credit losses

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The new guidance requires entities to measure and recognize expected credit losses for financial assets measured at amortized cost basis. The estimate of expected credit losses should consider historical information, current information, and reasonable and supportable forecasts of expected losses over the remaining contractual life that affect collectability. ASU No. 2016-13 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2019, with early adoption permitted. Signet currently expects to adopt this guidance when effective, and continues to assess the impact the adoption of this guidance will have on the Company’s financial position or results of operations.

Revenue recognition

In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU No. 2014-09 provides alternative methods of retrospective adoption. The FASB has issued several updates to the standard that i) defer the original effective date; ii) clarify the application of principal versus agent guidance; iii) clarify the guidance on inconsequential and perfunctory promises and licensing; and iv) clarify the guidance on the de-recognition of non-financial assets. ASU 2014‑09 and the related updates are effective for fiscal years beginning after December 15, 2017.

Signet adopted ASU 2014‑09 and related updates effective February 4, 2018 using the modified retrospective approach applied only to contracts not completed as of the date of adoption with no restatement of prior periods and by recognizing the cumulative effect of initially applying the new standard as an adjustment to the opening balance of equity. As a result of the Company’s evaluation of existing contracts with customers, the Company has identified that the new standard will require the Company to adjust its presentation related to customer trade-ins, accounting for returns reserves and treatment of the amortization of certain bonus and profit-sharing arrangements related to third party credit card programs. After the adoption of ASU 2014-09, the fair value of customer trade-ins will be considered non-cash consideration when determining the transaction price, and therefore classified as revenue rather than its previous classification as a reduction to cost of goods sold. Also, upon adoption of ASU 2014-09, the Company will record its current sales return reserve within separate refund liability and asset for recovery accounts. Further, subsequent to the adoption of the new accounting guidance, the Company anticipates that the amortization of certain signing bonuses and receipt of funds in connection with economic profit sharing arrangements will be recognized as a component of sales rather than as an offset to selling, general and administrative expense. The Company anticipates that the adoption will result in incremental revenue and incremental costs of goods sold and selling general and administrative expense due to these reclassifications.  We consider the impact of these adjustments immaterial to the overall consolidated financial statements.

Financial instruments

In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” The new guidance primarily impacts accounting for equity investments and financial liabilities under the fair value option, as well as, the presentation and disclosure requirements for financial instruments. Under the new guidance, equity investments will generally be measured at fair value, with subsequent changes in fair value recognized in net income. ASU No. 2016-01 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Signet plans to adopt this guidance in the first quarter of our fiscal year ending February 2, 2019. Signet does not expect the adoption of this guidance to have a material impact on the Company’s financial position or results of operations.

Leases

In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” The new guidance primarily impacts lessee accounting by requiring the recognition of a right-of-use asset and a corresponding lease liability on the balance sheet for long-term lease agreements. The lease liability will be equal to the present value of all reasonably certain lease payments. The right-of-use asset will be based on the liability, subject to adjustment for initial direct costs. Lease agreements that are 12 months or less are permitted to be excluded from the balance sheet. In general, leases will be amortized on a straight-line basis with the exception of finance lease agreements. ASU No. 2016-02 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018, which is effective for the first quarter of our fiscal year ending February 1, 2020. Signet is currently assessing the impact that adopting this guidance will have on the Company’s financial position or results of operations.

Liabilities

In March 2016, the FASB issued ASU No. 2016-04, “Liabilities - Extinguishments of Liabilities (Subtopic 405-20).” The new guidance addresses diversity in practice related to the derecognition of a prepaid stored-value product liability. Liabilities related to the sale of prepaid stored-value products within the scope of this update are financial liabilities. ASU No. 2016-04 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted. Signet plans to adopt this guidance in the first quarter of our fiscal year ending February 2, 2019. Signet does not expect the adoption of this guidance to have a material impact on the Company’s financial position or results of operations.

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Intangibles

In January 2017, the FASB issued ASU No. 2017-04, “Intangibles - Goodwill and Other: Simplifying the Test for Goodwill Impairment.” The new guidance requires a single-step quantitative test to identify and measure goodwill impairment based on the excess of a reporting unit's carrying amount over its fair value. A qualitative assessment may still be completed first for an entity to determine if a quantitative impairment test is necessary. ASU No. 2017-04 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2019, with early adoption permitted. Signet plans to adopt this guidance in the first quarter of our fiscal year ending February 2, 2019. Signet does not expect the adoption of this guidance to have a material impact on the Company’s financial position or results of operations.

Retirement Benefits

In March 2017, the FASB issued ASU No. 2017-07, “Compensation - Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” The new guidance requires entities to present the service cost component of the net periodic pension cost in the same income statement line item as other employee compensation costs arising from services rendered during the period. Entities will present the other components of net benefit cost separately from the service cost component and outside of operating profit within the income statement. In addition, only the service cost component will be eligible for capitalization in assets. ASU No. 2017-07 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Signet plans to adopt this guidance in the first quarter of our fiscal year ending February 2, 2019. Signet does not expect the adoption of this guidance to have a material impact on the Company’s financial position or results of operations.

Derivatives and Hedging

In August 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” The new guidance expands the types of risk management strategies eligible for hedge accounting, refines the documentation and effectiveness assessment requirements and modifies the presentation and disclosure requirements for hedge accounting activities. ASU No. 2017-12 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018, with early adoption permitted. Signet is currently assessing the timing of adoption and the impact this guidance will have on the Company’s financial position or results of operations.

3. Credit transaction, net

In October 2017, Signet, through its subsidiary Sterling, completed the sale of the prime-only credit quality portion of Sterling’s in-house finance receivable portfolio to Comenity. The following events summarize the credit transaction:

Receivables reclassification: In the second quarter of Fiscal 2018, certain in-house finance receivables that met the criteria for sale to Comenity were reclassified from "held for investment" to "held for sale." Accordingly, the receivables were recorded at the lower of cost (par) or fair value, resulting in the reversal of the related allowance for credit losses of $20.7 million. This reversal was recorded in credit transaction, net in the consolidated income statement during the second quarter of Fiscal 2018.

Proceeds received: In October 2017, the Company received $952.5 million in cash consideration reflecting the par value of the receivables sold. In addition, the Company recognized a beneficial interest asset of $10.2 million representing the present value of the cash flows the Company expects to receive under the economic profit sharing agreement related to the receivables sold. The gain upon recognition of the beneficial interest asset was recorded in credit transaction, net in the consolidated income statement during the third quarter of Fiscal 2018.

Expenses: During Fiscal 2018, the Company incurred $29.6 million of transaction-related costs. These costs were recorded in credit transaction, net in the consolidated income statement during Fiscal 2018.

Asset-backed securitization facility termination: In October 2017, the Company terminated the asset-backed securitization facility in order to transfer the receivables free and clear. The asset-backed securitization facility had a principal balance outstanding of $600.0 million at the time of termination. The payoff was funded through the proceeds received from the par value of receivables sold. See Note 21 for additional information regarding the asset-backed securitization facility.

Program agreement: Comenity provides credit to prime-only credit quality customers with an initial term of seven years and, unless terminated by either party, additional renewal terms of two years. Under the Program Agreement, Comenity established a program to issue Sterling credit cards to be serviced, marketed and promoted in accordance with the terms of the agreement. Subject to limited exceptions, Comenity is the exclusive issuer of private label credit cards or an installment or other closed end loan product in the United States bearing specified Company trademarks, including “Kay”, “Jared” and specified regional brands, but excluding “Zale”, during the term of the agreement. The pre-existing arrangement with Comenity for the issuing of Zale credit cards was unaffected by the execution of the Program Agreement. Upon expiration or termination by either party of the Program Agreement, Sterling retains the option to purchase, or arrange the purchase by a third party of, the program assets from Comenity on terms that are no more onerous to Sterling than those applicable to Comenity under the Purchase Agreement, or in the case of a purchase by a third party, on customary terms. Additionally, the Company received a signing bonus, which may be repayable under certain conditions if the Program Agreement is terminated, and a right to receive future payments related to the performance of the credit program under an economic profit sharing agreement. The Program Agreement contains customary representations, warranties and covenants.

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Additionally, Signet and Genesis Financial Solutions (“Genesis”) entered into a five-year servicing agreement in October 2017, under which Genesis will provide credit servicing functions for Signet’s existing non-prime accounts receivable, as well as future non-prime account originations.

During March 2018, the Company announced that it entered a definitive agreement with CarVal Investors (“CarVal”) to sell all eligible non-prime in-house accounts receivable. This agreement, in conjunction with the previously executed prime credit transaction with Comenity and the outsourcing of the servicing of the non-prime credit program to Genesis, will complete Signet’s transition to an outsourced credit structure. The sale is expected to close during the second quarter of Fiscal 2019 subject to certain closing conditions. In addition, for a five-year term, Signet will remain the issuer of non-prime credit with investment funds managed by CarVal Investors purchasing forward receivables at a discount rate determined in accordance with the agreement. Servicing of the non-prime receivables, including operational interfaces and customer servicing, will continue to be provided by Genesis.

During the first quarter of Fiscal 2019, the Company will reclassify its existing in-house finance receivables from held for investment to held for sale. The Company expects to recognize a loss of approximately $140.0 million upon reclassification as held for sale receivables are required to be valued at the lower of cost (par) or fair value, which incorporates an expectation of future losses. As of February 3, 2018, the Company’s non-prime accounts receivable are presented net of an allowance for credit losses, which represents management’s estimate of expected losses incurred in the accounts receivable portfolio as of the balance sheet date, as required under US GAAP (Topic 310 of the FASB Accounting Standards Codification). The transaction is expected to close in the second quarter of Signet's Fiscal 2019 subject to certain closing conditions.

4. Acquisitions

On September 12, 2017, the Company acquired the outstanding shares of R2Net, the owner of online jewelry retailer JamesAllen.com and Segoma Imaging Technologies. The acquisition rapidly enhanced the Company’s digital capabilities and accelerated its OmniChannel strategy, while adding a millennial-focused online retail brand to the Company’s portfolio. The Company paid $331.7 million, net of acquired cash of $47.3 million, for R2Net. The total consideration paid was funded with a $350.0 million bridge loan. See Note 21 for additional information regarding the bridge loan.

The transaction was accounted for as a business combination during the third quarter of Fiscal 2018 with R2Net becoming a wholly-owned consolidated subsidiary of Signet. Prior to closing the acquisition, the Company incurred approximately $8.6 million of acquisition-related costs for professional services in Fiscal 2018. Acquisition-related costs were recorded as selling, general and administrative expenses in the consolidated income statements. The results of R2Net subsequent to the acquisition date are reported as a component of the results of the Sterling Jewelers division. See Note 5 for segment information. Pro forma results of operations have not been presented, as the impact on the Company’s consolidated financial results was not material.

Under the acquisition method of accounting, the identifiable assets acquired and liabilities assumed are recorded at their estimated fair values on the acquisition date, with the remaining unallocated net purchase price recorded as goodwill. The following table summarizes the preliminary fair values identified for the assets acquired and liabilities assumed in the R2Net acquisition as of September 12, 2017:

(in millions)	Initial amounts
Cash and cash equivalents	$	47.3
Inventories	12.1
Other current assets	9.7
Property, plant and equipment	3.5
Intangible assets:
Trade name	70.6
Current liabilities	(42.4		)
Deferred tax liabilities	(23.5		)
Fair value of net assets acquired	77.3
Goodwill(1)	301.7
Total consideration transferred	$	379.0

⁽¹⁾  The amount of goodwill generated will be adjusted for any additional assets or liabilities identified by the Company or for any adjustments to the preliminary fair values identified for the assets acquired and liabilities assumed in the R2Net acquisition reflected above.

As of February 3, 2018, the Company is in the process of finalizing the net assets acquired in the acquisition, most notably, the valuation of intangible assets, including technology-related assets and income taxes. The estimates and assumptions utilized in the preliminary valuation are subject to change within the measurement period as additional information is obtained. The Company expects to finalize the valuation within one year from the date of acquisition. The goodwill generated from the acquisition is primarily attributable to expected synergies and will not be deductible for tax purposes.

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5. Segment information

Financial information for each of Signet’s reportable segments is presented in the tables below. Signet’s chief operating decision maker utilizes sales and operating income, after the elimination of any inter-segment transactions, to determine resource allocations and performance assessment measures. Signet’s sales are derived from the retailing of jewelry, watches, other products and services as generated through the management of its five reportable segments: the Sterling Jewelers division, the Zale division, which consists of the Zale Jewelry and Piercing Pagoda segments, the UK Jewelry division and Other.

The Sterling Jewelers division operates in all 50 US states. Its stores operate nationally in malls and off-mall locations principally as Kay (Kay Jewelers and Kay Jewelers Outlet) and Jared (Jared The Galleria Of Jewelry and Jared Vault). The division also operates a variety of mall-based regional brands and the JamesAllen.com website, which was acquired in the R2Net acquisition. The results for the Sterling Jewelers division include R2Net results for the period since September 12, 2017, the date of acquisition. See Note 4 for additional information.

The Zale division operates jewelry stores (Zale Jewelry) and kiosks (Piercing Pagoda), located primarily in shopping malls throughout the US and Canada. Zale Jewelry includes the US store brand Zales (Zales Jewelers and Zales Outlet), which operates in all 50 US states, and the Canadian store brand Peoples Jewellers, which operates in nine provinces. The division also operates regional brands Gordon’s Jewelers and Mappins. Piercing Pagoda operates through mall-based kiosks.

The UK Jewelry division operates stores in the UK, Republic of Ireland and Channel Islands. Its stores operate in shopping malls and off-mall locations (i.e. high street) principally as H.Samuel and Ernest Jones.

The Other reportable segment consists of all non-reportable segments, including subsidiaries involved in the purchasing and conversion of rough diamonds to polished stones, that are below the quantifiable threshold for separate disclosure as a reportable segment and unallocated corporate administrative functions.

During the first quarter of Fiscal 2019, the Company realigned its organizational structure. The new structure will allow for further integration of operational and product development processes and support growth strategies. In accordance with this organizational change, beginning with quarterly reporting for the 13 weeks ended May 5, 2018, the Company will report three reportable segments as follows: North America, International, and Other.

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(in millions)	Fiscal 2018			Fiscal 2017			Fiscal 2016
Sales:
Sterling Jewelers	$	3,820.5		$	3,930.4		$	3,988.7
Zale Jewelry(1)	1,516.2			1,549.7			1,568.2
Piercing Pagoda	278.5			263.1			243.2
UK Jewelry	616.7			647.1			737.6
Other	21.1			18.1			12.5
Total sales	$	6,253.0		$	6,408.4		$	6,550.2
Operating income (loss):
Sterling Jewelers(2)	$	576.0		$	715.8		$	718.6
Zale Jewelry	66.7			62.2			44.3
Piercing Pagoda	13.4			11.2			7.8
UK Jewelry	33.1			45.6			61.5
Other(3)	(109.3		)	(71.6		)	(128.5		)
Total operating income	$	579.9		$	763.2		$	703.7
Depreciation and amortization:
Sterling Jewelers	$	121.8		$	112.7		$	106.2
Zale Jewelry	55.3			49.1			44.8
Piercing Pagoda	6.4			4.6			3.3
UK Jewelry	19.1			21.6			20.1
Other	0.8			0.8			0.9
Total depreciation and amortization	$	203.4		$	188.8		$	175.3
Capital additions:
Sterling Jewelers	$	134.8		$	154.5		$	141.6
Zale Jewelry	76.3			85.0			47.7
Piercing Pagoda	8.6			12.7			10.2
UK Jewelry	17.6			25.7			26.4
Other	0.1			0.1			0.6
Total capital additions	$	237.4		$	278.0		$	226.5

⁽¹⁾  Includes sales of $235.1 million, $234.6 million and $248.7 million generated by Canadian operations in Fiscal 2018, Fiscal 2017 and Fiscal 2016, respectively.

⁽²⁾  For Fiscal 2018, amount includes $20.7 million gain related to the reversal of the allowance for credit losses for the in-house receivables sold, as well as the $10.2 million gain upon recognition of beneficial interest in connection with the sale of the prime portion of in-house receivables. See Note 3 for additional information.

⁽³⁾  For Fiscal 2018, Other includes $29.6 million of transaction costs related to the credit transaction, $8.6 million of R2Net acquisition costs, and $3.4 million of CEO transition costs. See Note 3 and Note 4 for additional information regarding credit transaction and acquisition of R2Net, respectively. For Fiscal 2017, Other includes $28.4 million of integration costs for consulting expenses associated with IT implementations, severance related to organizational changes and expenses associated with the settlement of miscellaneous legal matters pending as of the date of the Zale acquisition. For Fiscal 2016, Other includes $78.9 million of transaction and integration costs primarily attributable to the impact of the appraisal rights legal settlement discussed in Note 26 and expenses associated with legal, tax, accounting, IT implementations and consulting services, as well as severance costs.

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(in millions)	February 3, 2018		January 28, 2017
Total assets:
Sterling Jewelers	$	3,279.4	$	4,015.4
Zale Jewelry	1,879.4		1,940.7
Piercing Pagoda	150.2		141.6
UK Jewelry	420.3		372.6
Other	110.3		127.5
Total assets	$	5,839.6	$	6,597.8
Total long-lived assets:
Sterling Jewelers	$	956.3	$	567.3
Zale Jewelry	1,075.6		1,050.1
Piercing Pagoda	63.6		61.4
UK Jewelry	78.3		70.7
Other	7.3		8.0
Total long-lived assets	$	2,181.1	$	1,757.5
Total liabilities:
Sterling Jewelers	$	1,482.4	$	2,061.4
Zale Jewelry	439.9		524.3
Piercing Pagoda	28.8		28.2
UK Jewelry	98.9		110.6
Other	676.2		771.2
Total liabilities	$	2,726.2	$	3,495.7

(in millions)	Fiscal 2018		Fiscal 2017		Fiscal 2016
Sales by product:
Diamonds and diamond jewelry	$	3,742.8	$	3,853.7	$	3,918.1
Gold, silver jewelry, other products and services	2,067.2		2,090.0		2,116.4
Watches	443.0		464.7		515.7
Total sales	$	6,253.0	$	6,408.4	$	6,550.2

6. Redeemable preferred shares

On October 5, 2016, the Company issued 625,000 preferred shares to Green Equity Investors VI, L.P., Green Equity Investors Side VI, L.P., LGP Associates VI-A LLC and LGP Associates VI-B LLC, all affiliates of Leonard Green & Partners, L.P., (together, the “Investors”) for an aggregate purchase price of $625.0 million, or $1,000 per share (the “Stated Value”) pursuant to the investment agreement dated August 24, 2016. The Company's preferred shares are classified as temporary equity within the consolidated balance sheet.

In connection with the issuance of the preferred shares, the Company incurred direct and incremental expenses of $13.7 million, including financial advisory fees, closing costs, legal expenses and other offering-related expenses. These direct and incremental expenses originally reduced the preferred shares carrying value, and are accreted through retained earnings as a deemed dividend from the date of issuance through the first possible known redemption date, November 2024. Accumulated accretion relating to these fees of $2.3 million was recorded in the consolidated balance sheet as of February 3, 2018 (January 28, 2017: $0.6 million).

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Dividend rights: The preferred shares rank senior to the Company’s common shares, with respect to dividend rights and rights on the distribution of assets on any voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Company. The liquidation preference for preferred shares is equal to the greater of (a) the Stated Value per share, plus all accrued but unpaid dividends and (b) the consideration holders would have received if preferred shares were converted into common shares immediately prior to the liquidation. Preferred shareholders are entitled to a cumulative dividend at the rate of 5% per annum, payable quarterly in arrears, commencing on February 15, 2017, either in cash or by increasing the Stated Value at the option of the Company. In addition, preferred shareholders were entitled to receive dividends or distributions declared or paid on common shares on an as-converted basis, other than the Company’s regularly declared quarterly cash dividends not in excess of 130% of the arithmetic average of the regular, quarterly cash dividends per common share, if any, declared by the Company during the preceding four calendar quarters.

On November 2, 2016, the Board of Directors approved certain changes to the rights of the preferred shareholders, including the following: (a) elimination of the right of preferred shareholders to receive dividends or other distributions declared on the Company’s common shares and inclusion of adjustments to the conversion rate in the event of any dividend, distribution, spin-off or certain other events or transactions in respect of the common shares; and (b) addition of a requirement for approval by the holders of the majority of the issued preferred shares for the declaration or payment by the Company of any dividends or other distributions on the common shares other than (i) regularly declared quarterly cash dividends paid on the issued common shares in any calendar quarter in an amount per share that is not more than 130% of the arithmetic average of the regular, quarterly cash dividends per common share, if any, declared by the Company during the preceding four calendar quarters for such quarter and (ii) any dividends or other distributions which are paid or distributed at the same time on the common shares and the preferred shares, provided that the amount paid or distributed to the preferred shares is based on the number of common shares into which such preferred shares could be converted on the applicable record date for such dividends or other distributions.

Conversion features:Preferred shares are convertible at the option of the holders at any time into common shares at the then applicable conversion rate. The conversion rate is subject to certain anti-dilution and other adjustments, including stock split / reverse stock split transactions, regular dividends declared on common shares, share repurchases (excluding amounts through open market transactions or accelerated share repurchases) and issuances of common shares or other securities convertible into common shares. The initial issuance did not include a beneficial conversion feature as the conversion price used to set the conversion ratio at the time of issuance was greater than the Company’s common stock price.

At any time on or after October 5, 2018, all or a portion of outstanding preferred shares are convertible at the option of the Company if the closing price of common shares exceeds 175% of the then applicable conversion price for at least 20 consecutive trading days.

The following table presents certain conversion measures as of February 3, 2018 and January 28, 2017:

(in millions, except conversion rate and conversion price)	February 3, 2018		January 28, 2017
Conversion rate	10.9409		10.6529
Conversion price	$	91.4002	$	93.8712
Potential impact of preferred shares if-converted to common shares	6.8		6.7
Liquidation preference	$	632.8	$	636.3

Redemption rights: At any time after November 15, 2024, the Company will have the right to redeem any or all, and the holders of the preferred shares will have the right to require the Company to repurchase any or all, of the preferred shares for cash at a price equal to the Stated Value plus all accrued but unpaid dividends. Upon certain change of control or delisting events involving the Company, preferred shareholders can require the Company to repurchase, subject to certain exceptions, all or any portion of its preferred shares at (a) an amount in cash equal to 101% of the Stated Value plus all accrued but unpaid dividends or (b) the consideration the holders would have received if they had converted their preferred shares into common shares immediately prior to the change of control event.

Voting rights: Preferred shareholders are entitled to vote with the holders of common shares on an as-converted basis. Holders of preferred shares are entitled to a separate class vote with respect to certain designee(s) for election to the Company’s Board of Directors, amendments to the Company’s organizational documents that have an adverse effect on the preferred shareholders and issuances by the Company of securities that are senior to, or equal in priority with, the preferred shares.

Registration rights:  Preferred shareholders have certain customary registration rights with respect to the preferred shares and the shares of common shares into which they are converted, pursuant to the terms of a registration rights agreement.

7. Common shares, treasury shares, reserves and dividends

Common shares

The par value of each Common Share is 18 cents. The consideration received for common shares relating to options issued during Fiscal 2018 was $0.3 million (Fiscal 2017: $2.1 million; Fiscal 2016: $5.0 million).

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Treasury shares

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, accelerated share repurchase agreements or otherwise. The timing, manner, price and amount of any repurchases will be determined by the Company at 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 held as treasury shares and may be used by Signet for general corporate purposes.

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 the Company’s share option plans.

In February 2016, the Board authorized the repurchase of Signet’s common shares up to $750.0 million (the “2016 Program”). In August 2016, the Board increased its authorized share repurchase program by $625.0 million, bringing the total authorization for the 2016 Program to $1,375.0 million. The 2016 Program may be suspended or discontinued at any time without notice.

On October 5, 2016, the Company entered into an accelerated share repurchase agreement (“ASR”) with a large financial institution to repurchase $525.0 million of the Company’s common shares. At inception, the Company paid $525.0 million to the financial institution and took delivery of 4.7 million shares with an initial estimated cost of $367.5 million. In December 2016, the ASR was finalized and the Company received an additional 1.3 million shares. Total shares repurchased under the ASR were 6.0 million shares at an average purchase price of $87.01per share based on the volume-weighted average price of the Company’s common shares traded during the pricing period, less an agreed discount.

The Company reflected shares delivered as treasury shares as of the date the shares were physically delivered in computing the weighted average common shares outstanding for both basic and diluted earnings per share. The ASR was accounted for as a treasury stock transaction and a forward stock purchase contract. The forward stock purchase contract was determined to be indexed to the Company’s own stock and met all of the applicable criteria for equity classification.

The share repurchase activity is outlined in the table below:

			Fiscal 2018					Fiscal 2017					Fiscal 2016
(in millions, expect per share amounts)	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
2016 Program(1)	$	1,375.0	8.1	$	460.0	$	56.91	10.0	$	864.4	$	86.40	n/a	n/a		n/a
2013 Program(2)	$	350.0	n/a	n/a		n/a		1.2	$	135.6	$	111.26	1.0	$	130.0	$	127.63
Total			8.1	$	460.0	$	56.91	11.2	$	1,000.0	$	89.10	1.0	$	130.0	$	127.63

⁽¹⁾  The 2016 Program had $50.6 million remaining as of February 3, 2018.

⁽²⁾  The 2013 Program was completed in May 2016.

n/a Not applicable.

In June 2017, the Board of Directors authorized a new program to repurchase $600.0 million of Signet’s common shares (the “2017 Program”). The 2017 Program may be suspended or discontinued at any time without notice. The total authorization remaining under all authorized programs as of February 3, 2018 was $650.6 million. Shares were reissued in the amounts of 0.3 million and 0.1 million, net of taxes and forfeitures, in Fiscal 2018 and Fiscal 2017, respectively, to satisfy awards outstanding under existing share-based compensation plans.

Dividends on common shares

	Fiscal 2018					Fiscal 2017					Fiscal 2016
(in millions, except per share amounts)	Cash dividend per share		Total dividends			Cash dividend per share		Total dividends			Cash dividend per share		Total dividends
First quarter	$	0.31	$	21.3		$	0.26	$	20.4		$	0.22	$	17.6
Second quarter	0.31		18.7			0.26		19.7			0.22		17.6
Third quarter	0.31		18.7			0.26		18.1			0.22		17.5
Fourth quarter	0.31		18.8		(1)	0.26		17.7		(1)	0.22		17.5
Total	$	1.24	$	77.5		$	1.04	$	75.9		$	0.88	$	70.2

⁽¹⁾  Signet’s dividend policy results in the dividend payment date being a quarter in arrears from the declaration date. As a result, as of February 3, 2018 and January 28, 2017, $18.8 million and $17.7 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 2018 and Fiscal 2017, respectively.

In addition, on March 14, 2018, Signet’s Board declared a quarterly dividend of $0.37 per share on its common shares. This dividend will be payable on June 1, 2018 to shareholders of record on May 4, 2018, with an ex-dividend date of May 3, 2018.

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Dividends on preferred shares

	Fiscal 2018		Fiscal 2017
(in millions)	Total cash dividends		Total cash dividends
First quarter	$	7.8	$	—
Second quarter	7.8		—
Third quarter	7.8		—
Fourth quarter(1)	7.8		11.3
Total	$	31.2	$	11.3

⁽¹⁾  Signet’s preferred shares dividends results in the dividend payment date being a quarter in arrears from the declaration date. As a result, as of February 3, 2018 and January 28, 2017, $7.8 million and $11.3 million, respectively, has been recorded in accrued expenses and other current liabilities in the condensed consolidated balance sheets reflecting the cash dividends on preferred shares declared for the fourth quarter of Fiscal 2018 and Fiscal 2017, respectively.

There were no cumulative undeclared dividends on the preferred shares that reduced net income attributable to common shareholders during Fiscal 2018. In addition, deemed dividends of $1.7 million and $0.6 million related to accretion of issuance costs associated with the preferred shares were recognized in Fiscal 2018 and Fiscal 2017, respectively.

8. Earnings per common share (“EPS”)

Basic EPS is computed by dividing net income attributable to common shareholders by the weighted average number of common shares outstanding for the period. The computation of basic EPS is outlined in the table below:

(in millions, except per share amounts)	Fiscal 2018		Fiscal 2017		Fiscal 2016
Numerator:
Net income attributable to common shareholders	$	486.4	$	531.3	$	467.9
Denominator:
Weighted average common shares outstanding	63.0		74.5		79.5
EPS – basic	$	7.72	$	7.13	$	5.89

The dilutive effect of share awards represents the potential impact of outstanding awards issued under the Company’s share-based compensation plans, including restricted shares and restricted stock units issued under the Omnibus Plan and stock options issued under the Share Saving Plans and Executive Plans. The dilutive effect of preferred shares represents the potential impact for common shares that would be issued upon conversion. Potential common share dilution related to share awards and preferred shares is determined using the treasury stock and if-converted methods, respectively. Under the if-converted method, the preferred shares are assumed to be converted at the beginning of the period, and the resulting common shares are included in the denominator of the diluted EPS calculation for the entire period being presented. Additionally, cumulative dividends and accretion for issuance costs associated with the preferred shares are added back to net income attributable to common shareholders. See Note 6 for additional discussion of the Company’s preferred shares. The computation of diluted EPS is outlined in the table below:

(in millions, except per share amounts)	Fiscal 2018		Fiscal 2017		Fiscal 2016
Numerator:
Net income attributable to common shareholders	$	486.4	$	531.3	$	467.9
Add: Dividends on preferred shares	32.9		11.9		—
Numerator for diluted EPS	$	519.3	$	543.2	$	467.9
Denominator:
Weighted average common shares outstanding	63.0		74.5		79.5
Plus: Dilutive effect of share awards	0.1		0.1		0.2
Plus: Dilutive effect of preferred shares	6.7		2.1		—
Diluted weighted average common shares outstanding	69.8		76.7		79.7
EPS – diluted	$	7.44	$	7.08	$	5.87

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The calculation of diluted EPS excludes the following share awards on the basis that their effect would be anti-dilutive.

(in millions)	Fiscal 2018	Fiscal 2017	Fiscal 2016
Share awards	0.4	0.1	0.1

9. Accumulated other comprehensive income (loss)

The following tables present the changes in AOCI by component and the reclassifications out of AOCI, net of tax:

										Pension plan
(in millions)	Foreign currency translation			Losses on available-for-sale securities, net			Gains (losses) on cash flow hedges			Actuarial gains (losses)			Prior service credits (costs)			Accumulated other comprehensive (loss) income
Balance at January 31, 2015	$	(197.6	)	$	—		$	4.4		$	(56.7	)	$	13.3		$	(236.6	)
OCI before reclassifications	(40.2		)	(0.4		)	(11.8		)	10.9			(0.5		)	(42.0		)
Amounts reclassified from AOCI to net income	—			—			3.5			2.7			(1.7		)	4.5
Net current period OCI	(40.2		)	(0.4		)	(8.3		)	13.6			(2.2		)	(37.5		)
Balance at January 30, 2016	$	(237.8	)	$	(0.4	)	$	(3.9	)	$	(43.1	)	$	11.1		$	(274.1	)
OCI before reclassifications	(25.6		)	—			6.9			(13.6		)	(0.4		)	(32.7		)
Amounts reclassified from AOCI to net income	—			—			(0.6		)	1.2			(1.5		)	(0.9		)
Net current period OCI	(25.6		)	—			6.3			(12.4		)	(1.9		)	(33.6		)
Balance at January 28, 2017	$	(263.4	)	$	(0.4	)	$	2.4		$	(55.5	)	$	9.2		$	(307.7	)
OCI before reclassifications	50.9			0.3			1.8			—			(0.5		)	52.5
Amounts reclassified from AOCI to net income	—			—			(3.5		)	4.4			(6.3		)	(5.4		)
Net current period OCI	50.9			0.3			(1.7		)	4.4			(6.8		)	47.1
Balance at February 3, 2018	$	(212.5	)	$	(0.1	)	$	0.7		$	(51.1	)	$	2.4		$	(260.6	)

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The amounts reclassified from AOCI were as follows:

	Amounts reclassified from AOCI
(in millions)	Fiscal 2018			Fiscal 2017			Fiscal 2016			Income statement caption
(Gains) losses on cash flow hedges:
Foreign currency contracts	$	(3.2	)	$	(2.7	)	$	(0.4	)	Cost of sales (see Note 18)
Interest rate swaps	0.3			2.2			2.7			Interest expense, net (see Note 18)
Commodity contracts	(1.7		)	(0.2		)	2.6			Cost of sales (see Note 18)
Total before income tax	(4.6		)	(0.7		)	4.9
Income taxes	1.1			0.1			(1.4		)
Net of tax	(3.5		)	(0.6		)	3.5
Defined benefit pension plan items:
Amortization of unrecognized actuarial losses	2.8			1.5			3.4			Selling, general and administrative expenses(1)
Amortization of unrecognized net prior service credits	(1.4		)	(1.9		)	(2.2		)	Selling, general and administrative expenses(1)
Net curtailment gain and settlement loss	(3.7		)	—			—			Selling, general and administrative expenses(1)
Total before income tax	(2.3		)	(0.4		)	1.2
Income taxes	0.4			0.1			(0.2		)
Net of tax	(1.9		)	(0.3		)	1.0
Total reclassifications, net of tax	$	(5.4	)	$	(0.9	)	$	4.5

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

10. Income taxes

(in millions)	Fiscal 2018			Fiscal 2017		Fiscal 2016
Income before income taxes:
– US	$	202.2		$	424.0	$	426.1
– Foreign	325.0			289.8		231.7
Total income before income taxes	$	527.2		$	713.8	$	657.8
Current taxation:
– US	$	35.9		$	137.6	$	161.7
– Foreign	6.1			3.9		3.5
Deferred taxation:
– US	(34.8		)	28.1		22.3
– Foreign	0.7			1.0		2.4
Total income taxes	$	7.9		$	170.6	$	189.9

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

	Fiscal 2018		Fiscal 2017		Fiscal 2016
US federal income tax rates	35.0	%	35.0	%	35.0	%
US state income taxes	1.9	%	1.9	%	2.7	%
Differences between US federal and foreign statutory income tax rates	(1.0	)%	(0.2	)%	(0.5	)%
Expenditures permanently disallowable for tax purposes, net of permanent tax benefits	1.0	%	0.4	%	0.5	%
Disallowable transaction costs	0.4	%	0.1	%	2.1	%
Impact of global reinsurance arrangements	(8.1	)%	(5.4	)%	(2.4	)%
Impact of global financing arrangements	(11.4	)%	(8.2	)%	(8.7	)%
Provisional benefit in current year taxes - the TCJ Act	(4.1	)%	—	%	—	%
Provisional remeasurement of deferred taxes - the TCJ Act	(12.3	)%	—	%	—	%
Other items	0.1	%	0.3	%	0.2	%
Effective tax rate	1.5	%	23.9	%	28.9	%

In Fiscal 2018, Signet’s effective tax rate was lower than the US federal income tax rate primarily due to the impact of US tax reform as well as Signet’s global reinsurance and financing arrangements utilized to fund the acquisition of Zale. Signet’s future effective tax rate is dependent on changes in the geographic mix of income.

US Tax Reform

On December 22, 2017, the U.S. government enacted “An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018”, which is commonly referred to as “The Tax Cuts and Jobs Act” (the “TCJ Act”). The TCJ Act provides for comprehensive tax legislation that reduces the U.S. federal statutory corporate tax rate from 35.0 percent to 21.0 percent effective January 1, 2018, limits certain deductions, including limiting the deductibility of interest expense to 30% of U.S. Earnings Before Interest, Taxes, Depreciation and Amortization, broadens the U.S. federal income tax base, requires companies to pay a one-time repatriation tax on earnings of certain foreign subsidiaries that were previously tax deferred (“transition tax”), and creates new taxes on certain foreign sourced earnings. As we have a 52-53-week tax year ending the Saturday nearest October 31, the lower corporate income tax rate is administratively phased in, resulting in a blended U.S. federal statutory tax rate of approximately 23.4 percent for our fiscal tax year from October 29, 2017 through November 3, 2018, and 21.0 percent for our fiscal tax years thereafter.

On December 22, 2017, the SEC issued Staff Accounting Bulletin 118 (“SAB 118”), expressing its views regarding the FASB's Accounting Standards Codification 740, Income Taxes, in the reporting period that includes the enactment date of the TCJ Act. SAB 118 recognizes that a registrant’s review of certain income tax effects of the TCJ Act may be incomplete at the time financial statements are issued for the reporting period that includes the enactment date, including interim periods therein. Specifically, SAB 118 allows a company to report provisional estimates in the reporting period that includes the enactment date if the company does not have the necessary information available, prepared, or fully analyzed for certain income tax effects of the TCJ Act. The provisional estimates would be adjusted during a measurement period not to exceed 12 months from the enactment date of the TCJ Act, at which time the accounting for the income tax effects of the TCJ Act is required to be completed.

We have not completed our accounting for the income tax effects of the enactment of the TCJ Act; however, we have made a reasonable estimate of the effects on our existing deferred tax balances. We expect to complete our analysis of the amounts recorded as of enactment of the TCJ Act within the measurement period of one year.

In addition to the estimates further described below, we also used assumptions and estimates that may change as a result of future guidance and interpretation from the Internal Revenue Service, other taxing jurisdictions, the SEC, and the FASB. In particular, we anticipate that the U.S. state jurisdictions will continue to determine and announce their conformity or decoupling from the TCJ Act, either in its entirety or with respect to specific provisions. All of these potential legislative and interpretive actions could result in adjustments to our provisional estimates when the accounting for the income tax effects of the TCJ Act is completed.

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Accordingly, our income tax provision as of February 3, 2018, reflects the current year impacts of the TCJ Act on the effective tax rate, and the following provisional estimates of the adjustments resulting directly from the enactment of the TCJ Act based on information available, prepared, or analyzed as of February 3, 2018 in reasonable detail:

	Fiscal 2018
(in millions)	Income tax benefit (expense)
Net impact on remeasurement of US deferred tax assets and liabilities	$	64.7
Net impact of reduce US tax rate on income from October 29, 2017 through February 3, 2018	21.5
Net benefit of the TCJ Act	$	86.2

Deferred tax assets and liabilities: We remeasured our existing US deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, of which the federal component is approximately 23.4 percent for reversals expected in the tax year from October 29, 2018 through November 3, 2018 and 21.0 percent thereafter. The provisional amount recorded related to the remeasurement of our deferred tax balance is a benefit of $64.7 million. The effect of the remeasurement was recorded in the fourth quarter of Financial Year 2018, consistent with the enactment date of the TCJ Act, and reflected in our provision for income taxes. We determined that the calculation cannot be completed until all of the underlying timing differences as of November 3, 2018, are known, rather than estimated at February 3, 2018. Furthermore, we are still analyzing certain aspects of the TCJ Act and refining our calculations, which could potentially affect the measurement of these balances or potentially give rise to new or additional deferred tax amounts.

Foreign tax effects: The transition tax is based on total post-1986 earnings and profits which were previously deferred from U.S. income taxes. There is no expected transition tax liability estimated as the earnings and profits of the US foreign subsidiaries are estimated to be in an aggregate deficit position. The transition tax is provisional because numerous components of the computation are estimated as of February 3, 2018.

We continue to review the anticipated impacts of the global intangible low-taxed income (“GILTI”) and base erosion and anti-abuse tax (“BEAT”), which are not effective until our tax year beginning November 4, 2018. We have not recorded any impact associated with either GILTI or BEAT in the tax rate during the financial year ended February 3, 2018.

The components of the provisional net tax expense recorded in the financial year ended February 3, 2018 are based on currently available information and additional information needs to be prepared, obtained and/or analyzed to determine the final amounts. The provisional tax benefit for the remeasurement of deferred taxes will require additional information necessary for the preparation of our U.S. federal tax return, and further analysis and interpretation of certain provisions of the TCJ Act could impact our deferred tax balance as of February 3, 2018.

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Deferred taxes

Deferred tax assets (liabilities) consisted of the following:

	February 3, 2018									January 28, 2017
(in millions)	Assets			(Liabilities)			Total			Assets			(Liabilities)			Total
Intangible assets	$	—		$	(130.9	)	$	(130.9	)	$	—		$	(160.1	)	$	(160.1	)
US property, plant and equipment	—			(65.2		)	(65.2		)	—			(86.2		)	(86.2		)
Foreign property, plant and equipment	6.2			—			6.2			5.0			—			5.0
Inventory valuation	—			(193.7		)	(193.7		)	—			(289.4		)	(289.4		)
Allowances for doubtful accounts	34.4			—			34.4			60.4			—			60.4
Revenue deferral	147.1			—			147.1			216.0			—			216.0
Derivative instruments	—			(0.3		)	(0.3		)	—			—			—
Straight-line lease payments	26.5			—			26.5			37.5			—			37.5
Deferred compensation	9.2			—			9.2			16.5			—			16.5
Retirement benefit obligations	—			(7.6		)	(7.6		)	—			(6.1		)	(6.1		)
Share-based compensation	4.4			—			4.4			5.7			—			5.7
Other temporary differences	47.1			—			47.1			51.0			—			51.0
Net operating losses and foreign tax credits	56.9			—			56.9			69.2			—			69.2
Value of foreign capital losses	12.0			—			12.0			11.3			—			11.3
Total gross deferred tax assets (liabilities)	$	343.8		$	(397.7	)	$	(53.9	)	$	472.6		$	(541.8	)	$	(69.2	)
Valuation allowance	(37.0		)	—			(37.0		)	(31.5		)	—			(31.5		)
Deferred tax assets (liabilities)	$	306.8		$	(397.7	)	$	(90.9	)	$	441.1		$	(541.8	)	$	(100.7	)
Disclosed as:
Non-current assets							$	1.4								$	0.7
Non-current liabilities							(92.3		)							(101.4		)
Deferred tax assets (liabilities)							$	(90.9	)							$	(100.7	)

As of February 3, 2018, Signet had deferred tax assets associated with net operating loss carry forwards of $31.7 million, which are subject to ownership change limitations rules under Section 382 of the Internal Revenue Code (“IRC”) and various US state regulations, and expire between 2018 and 2037. Deferred tax assets associated with foreign tax credits also subject to Section 382 of the IRC total $13.7 million as of February 3, 2018, which expire between 2018 and 2024 and foreign net operating loss carryforwards of $11.5 million, which expire between 2018 and 2038. Additionally, Signet had foreign capital loss carry forward deferred tax assets of $12.0 million (Fiscal 2017: $11.3 million), which are only available to offset future capital gains, if any, over an indefinite period.

The increase in the total valuation allowance in Fiscal 2018 was $5.5 million (Fiscal 2017: $0.4 million net decrease; Fiscal 2016: $0.5 million net increase). The valuation allowance primarily relates to foreign capital and trading loss carry forwards, foreign tax credits and state net operating losses 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 3, 2018 will be offset where permissible by deferred tax liabilities or realized on future tax returns, primarily from the generation of future taxable income.

Uncertain tax positions

The following table summarizes the activity related to the Company’s unrecognized tax benefits for US federal, US state and non-US tax jurisdictions:

(in millions)	Fiscal 2018			Fiscal 2017			Fiscal 2016
Unrecognized tax benefits, beginning of period	$	12.0		$	11.4		$	11.4
Increases related to current year tax positions	2.3			2.4			2.0
Lapse of statute of limitations	(2.4		)	(1.9		)	(1.9		)
Difference on foreign currency translation	0.1			0.1			(0.1		)
Unrecognized tax benefits, end of period	$	12.0		$	12.0		$	11.4

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As of February 3, 2018, Signet had approximately $12.0 million of unrecognized tax benefits in respect to uncertain tax positions. The unrecognized tax benefits relate primarily 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. As of February 3, 2018, Signet had accrued interest of $2.7 million and $0.7 million of accrued penalties. If all of these unrecognized tax benefits were settled in Signet’s favor, the effective income tax rate would be favorably impacted by $13.1 million.

Over the next twelve months management believes that it is reasonably possible that there could be a reduction of some or all of the unrecognized tax benefits as of February 3, 2018 due to settlement of the uncertain tax positions with the tax authorities.

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, Canada and certain other foreign jurisdictions. Signet is subject to examinations by the US federal and state and Canadian tax authorities for tax years ending after November 1, 2011 and is subject to examination by the UK tax authority for tax years ending after February 1, 2014.

11. Other operating income, net

(in millions)	Fiscal 2018		Fiscal 2017		Fiscal 2016
Interest income from in-house customer finance programs(1)	$	258.1	$	282.5	$	252.6
Other	2.7		0.1		(1.7		)
Other operating income, net	$	260.8	$	282.6	$	250.9

⁽¹⁾  See Note 3 and Note 12 for additional information.

12. Accounts receivable, net

In October 2017, the Company completed the sale of the prime-only credit quality portion of the Sterling Jewelers customer in-house finance receivable portfolio. The receivables sold, which were classified as "held for sale" as of the second quarter of Fiscal 2018, are no longer reported within the consolidated balance sheet. See Note 3 for additional information regarding the sale of these receivables. 

Signet’s accounts receivable primarily consist of US customer in-house financing receivables. The in-house finance receivable portfolio consists of a population that is of similar characteristics and is evaluated collectively for impairment.

(in millions)	February 3, 2018		January 28, 2017
Accounts receivable by portfolio segment, net:
Sterling Jewelers customer in-house finance receivables	$	649.4	$	1,813.3
Zale customer in-house finance receivables	33.5		33.4
Other accounts receivable	9.6		11.3
Total accounts receivable, net	$	692.5	$	1,858.0

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.

During the third quarter of Fiscal 2016, Signet implemented a program to provide in-house credit to customers in the Zale division’s US locations. The allowance for credit losses associated with Zale customer in-house finance receivables was immaterial as of February 3, 2018 and January 28, 2017. Effective October 20, 2017, the Zale customer in-house financing programs are being underwritten and serviced by a third party for newly originated balances after the effective date.

Other accounts receivable is comprised primarily of accounts receivable relating to the insurance loss replacement business in the UK Jewelry division of $9.3 million (January 28, 2017: $11.0 million).

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Sterling Jewelers customer in-house finance receivables

The allowance for credit losses associated with the portion of Sterling Jewelers customer in-house finance receivables sold in October 2017 was reversed during the second quarter of Fiscal 2018. The allowance for credit losses on Sterling Jewelers remaining customer in-house finance receivables is shown below:

(in millions)	Fiscal 2018			Fiscal 2017			Fiscal 2016
Beginning balance:	$	(138.7	)	$	(130.0	)	$	(113.1	)
Charge-offs, net	221.2			203.4			173.6
Recoveries	34.3			35.1			35.3
Provision	(251.0		)	(247.2		)	(225.8		)
Reversal of allowance on receivables sold	20.7			—			—
Ending balance	(113.5		)	(138.7		)	(130.0		)
Ending receivable balance evaluated for impairment	762.9			1,952.0			1,855.9
Sterling Jewelers customer in-house finance receivables, net	649.4			1,813.3			1,725.9

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

As a result of the sale of the prime-only credit portion of the Sterling Jewelers customer in-house finance receivable portfolio and the outsourcing of the credit servicing on the remaining in-house finance receivable portfolio disclosed in Note 3, the Company revised its methodology for measuring delinquency to be based on the contractual basis. The credit quality indicator and age analysis of Sterling Jewelers customer in-house finance receivables are shown below under the contractual basis:

	February 3, 2018
(in millions)	Gross		Valuation allowance
Performing (accrual status):
0 - 120 days past due	$	703.4	$	(54.0	)
121 or more days past due	59.5		(59.5		)
	$	762.9	$	(113.5	)
Valuation allowance as a % of ending receivable balance			14.9		%

Prior to the fourth quarter of Fiscal 2018, the Company’s calculation of the allowance for credit losses was based on a recency measure of delinquency. The credit quality indicator and age analysis of Sterling Jewelers customer in-house finance receivables prior to the sale of the prime-only credit portion of the in-house receivable portfolio as of January 28, 2017 and January 30, 2016 are shown below under the recency basis:

	January 28, 2017					January 30, 2016
(in millions)	Gross		Valuation allowance			Gross		Valuation allowance
Performing (accrual status):
Current, aged 0 – 30 days	$	1,538.2	$	(47.2	)	$	1,473.0	$	(45.4	)
Past due, aged 31 – 60 days	282.0		(9.0		)	259.6		(8.3		)
Past due, aged 61 – 90 days	51.6		(2.3		)	49.2		(2.2		)
Non Performing (nonaccrual status):
Past due, aged more than 90 days	80.2		(80.2		)	74.1		(74.1		)
	$	1,952.0	$	(138.7	)	$	1,855.9	$	(130.0	)
Valuation allowance as a % of ending receivable balance			7.1		%			7.0		%

As a result of the sale of the prime-only credit portion of the in-house finance receivable portfolio, the change in measure of delinquency during the fourth quarter of Fiscal 2018, and the difference in collection strategies (including minimum payments and customer contact schedules) utilized by the outsourced service provider in the fourth quarter of Fiscal 2018 as compared to the in-house collection methodologies applied by Signet in prior periods, the comparability of the portfolio performance and aging may be limited.

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Securitized credit card receivables

The Sterling Jewelers division previously securitized its credit card receivables through its Sterling Jewelers Receivables Master Note Trust. As a condition of closing the credit transaction during the third quarter of Fiscal 2018, the Company terminated the asset-backed securitization facility to transfer the receivables free and clear. See Note 21 for additional information regarding this asset-backed securitization facility.

13. Inventories

Signet held $606.4 million of consignment inventory at February 3, 2018 (January 28, 2017: $574.0 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 adjust the inventory prices prior to sale.

The following table summarizes the details of the Company’s inventory:

(in millions)	February 3, 2018		January 28, 2017
Raw materials	$	72.0	$	60.8
Finished goods	2,208.5		2,388.5
Total inventories	$	2,280.5	$	2,449.3

Inventory reserves

(in millions)	Fiscal 2018			Fiscal 2017			Fiscal 2016
Inventory reserve, beginning of period	$	43.2		$	43.2		$	28.4
Charged to profit	75.8			57.3			87.6
Utilization(1)	(78.4		)	(57.3		)	(72.8		)
Inventory reserve, end of period	$	40.6		$	43.2		$	43.2

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

14. Property, plant and equipment, net

(in millions)	February 3, 2018			January 28, 2017
Land and buildings	$	35.9		$	33.5
Leasehold improvements	689.8			632.4
Furniture and fixtures	804.2			761.0
Equipment	177.0			137.7
Software	271.4			211.0
Construction in progress	97.2			96.7
Total	$	2,075.5		$	1,872.3
Accumulated depreciation and amortization	(1,197.6		)	(1,049.4		)
Property, plant and equipment, net	$	877.9		$	822.9

Depreciation and amortization expense for Fiscal 2018 was $194.1 million (Fiscal 2017: $175.0 million; Fiscal 2016: $161.4 million). The expense for Fiscal 2018 includes $1.0 million (Fiscal 2017: $1.3 million; Fiscal 2016: $0.7 million) for the impairment of assets.

15. Goodwill and intangibles

In connection with the acquisition of R2Net on September 12, 2017, the Company recognized $301.7 million of goodwill, which is reported in the Sterling Jewelers segment. The amount of goodwill generated will be adjusted for any additional assets or liabilities identified by the Company or for any adjustments to the preliminary fair values identified for the assets acquired and liabilities assumed in the R2Net acquisition.

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Goodwill

The following table summarizes the Company’s goodwill by reportable segment:

(in millions)	Sterling Jewelers		Zale Jewelry		Piercing Pagoda		UK Jewelry		Other		Total
Balance at January 30, 2016	$	23.2	$	488.7	$	—	$	—	$	3.6	$	515.5
Impact of foreign exchange	—		2.1		—		—		—		2.1
Balance at January 28, 2017	$	23.2	$	490.8	$	—	$	—	$	3.6	$	517.6
Acquisitions	301.7		—		—		—		—		301.7
Impact of foreign exchange	—		2.4		—		—		—		2.4
Balance at February 3, 2018	$	324.9	$	493.2	$	—	$	—	$	3.6	$	821.7

There have been no goodwill impairment losses recognized during Fiscal 2018 and Fiscal 2017. If future economic conditions are different than those projected by management, future impairment charges may be required.

Intangibles

Definite-lived intangible assets include trade names and favorable lease agreements. Indefinite-lived intangible assets include trade names. Both definite and indefinite-lived assets are recorded within intangible assets, net on the consolidated balance sheets. Intangible liabilities, net is comprised of unfavorable lease agreements and contracts and is recorded within other liabilities on the consolidated balance sheets. The following table provides additional detail regarding the composition of intangible assets and liabilities:

	February 3, 2018									January 28, 2017
(in millions)	Gross carrying amount			Accumulated amortization			Net carrying amount			Gross carrying amount			Accumulated amortization			Net carrying amount
Intangible assets, net:
Definite-lived intangible assets	49.8			(46.7		)	3.1			49.0			(36.8		)	12.2
Indefinite-lived intangible assets	478.4			—			478.4			404.8			—			404.8
Total intangible assets, net	$	528.2		$	(46.7	)	$	481.5		$	453.8		$	(36.8	)	$	417.0
Intangible liabilities, net	$	(114.5	)	$	85.2		$	(29.3	)	$	(113.9	)	$	71.7		$	(42.2	)

Amortization expense relating to intangible assets was $9.3 million in Fiscal 2018 (Fiscal 2017: $13.8 million; Fiscal 2016: $13.9 million). The unfavorable leases and unfavorable contracts are classified as liabilities and recognized over the term of the underlying lease or contract. Amortization relating to intangible liabilities was $13.0 million in Fiscal 2018 (Fiscal 2017: $19.7 million; Fiscal 2016: $28.7 million). Expected future amortization for intangible assets and future amortization for intangible liabilities recorded at February 3, 2018 follows:

(in millions)	Intangible assets, net amortization		Intangible liabilities amortization
2019	$	2.7	$	(7.7	)
2020	0.3		(5.7		)
2021	0.1		(5.4		)
2022	—		(5.4		)
2023	—		(5.1		)
Total	$	3.1	$	(29.3	)

During the first quarter of Fiscal 2019, the Company observed a general decline in the market valuation of the Company’s common shares which could impact the assumptions used to perform an evaluation of its indefinite-lived intangible assets, including goodwill and trade names. As of the date of this report, the estimated fair value of the reporting units and indefinite-lived trade names continues to exceed the carrying values. However, the Company will continue to monitor sales trends, interest rates, and other key inputs to the estimates of fair value. A further decline in the key inputs, especially sales trends used in the valuation of trade names, may result in an impairment charge.

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16. Other assets

(in millions)	February 3, 2018		January 28, 2017
Deferred ESP selling costs	$	89.5	$	86.1
Investments(1)	27.9		27.2
Other assets	53.8		51.8
Total other assets	$	171.2	$	165.1

⁽¹⁾  See Note 17 for additional detail.

In addition, other current assets include deferred direct selling costs in relation to the sale of ESP of $30.9 million as of February 3, 2018 (January 28, 2017: $29.4 million).

17. Investments

Investments in debt and equity securities are held by certain insurance subsidiaries and are reported at fair value as other assets in the accompanying consolidated balance sheets. All investments are classified as available-for-sale and include the following:

	February 3, 2018							January 28, 2017
(in millions)	Cost		Unrealized Gain (Loss)			Fair Value		Cost		Unrealized Gain (Loss)			Fair Value
US Treasury securities	$	8.3	$	(0.8	)	$	7.5	$	8.8	$	(0.7	)	$	8.1
US government agency securities	5.3		(0.2		)	5.1		4.6		(0.2		)	4.4
Corporate bonds and notes	11.0		(0.2		)	10.8		11.0		(0.1		)	10.9
Corporate equity securities	3.5		1.0			4.5		3.5		0.3			3.8
Total investments	$	28.1	$	(0.2	)	$	27.9	$	27.9	$	(0.7	)	$	27.2

Realized gains and losses on investments are determined on the specific identification basis. There were no material net realized gains or losses during Fiscal 2018 and Fiscal 2017. Investments with a carrying value of $6.8 million and $6.6 million were on deposit with various state insurance departments at February 3, 2018 and January 28, 2017, respectively, as required by law.

Investments in debt securities outstanding as of February 3, 2018 mature as follows:

(in millions)	Cost		Fair Value
Less than one year	$	2.9	$	2.3
Year two through year five	16.9		16.4
Year six through year ten	4.8		4.7
Total investment in debt securities	$	24.6	$	23.4

18. Derivatives

Derivative transactions are used by Signet for risk management purposes to address risks inherent in Signet’s business operations and sources of financing. The main risks arising from Signet’s operations are market risk including foreign currency risk, commodity risk, liquidity risk and interest rate risk. Signet uses derivative financial instruments to manage and mitigate certain of these risks under policies reviewed and approved by the Board of Directors. Signet does not enter into derivative transactions for speculative purposes.

Market risk

Signet generates revenues and incurs expenses in US dollars, Canadian dollars and British pounds. As a portion of UK Jewelry purchases and purchases made by the Canadian operations of the Zale division 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 British pounds and Canadian dollars reflecting the cash generative characteristics of operations. Signet’s objective is to minimize net foreign exchange exposure to the income statement on non-US dollar denominated items through managing cash levels, non-US dollar denominated intra-entity balances and foreign currency swaps. In order to manage the foreign exchange exposure and minimize the level of funds denominated in British pounds and Canadian dollars, dividends are paid regularly by subsidiaries to their immediate holding companies and excess British pounds and Canadian dollars are sold in exchange for US dollars.

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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 options to purchase, precious metals within treasury guidelines approved by the Board of Directors. In particular, Signet undertakes some hedging of its requirements 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 of Directors. Cash generated from operations and external financing are the main sources of funding, which supplement Signet’s resources in meeting liquidity requirements.

The main external sources of funding are a senior unsecured credit facility and senior unsecured notes as described in Note 21.

Interest rate risk

Signet has exposure to movements in interest rates associated with cash and borrowings. Signet may enter into various interest rate protection agreements in order to limit the impact of movements in interest rates.

Interest rate swap (designated) — The Company entered into an interest rate swap in March 2015 with an aggregate notional amount of $300.0 million that is scheduled to mature through April 2019. Under this contract, the Company agrees to exchange, at specified intervals, the difference between fixed contract rates and floating rate interest amounts calculated by reference to the agreed notional amounts. This contract was entered into to reduce the consolidated interest rate risk associated with variable rate, long-term debt. The Company designated this derivative as a cash flow hedge of the variability in expected cash outflows for interest payments. The Company has effectively converted a portion of its variable-rate senior unsecured term loan into fixed-rate debt.

The fair value of the swap is presented within the consolidated balance sheets, and the Company recognizes any changes in the fair value as an adjustment of AOCI within equity to the extent the swap is effective. The ineffective portion, if any, is recognized in current period earnings. As interest expense is accrued on the debt obligation, amounts in AOCI related to the interest rate swap are reclassified into income resulting in a net interest expense on the hedged amount of the underlying debt obligation equal to the effective yield of the fixed rate of the swap. In the event that the interest rate swap is dedesignated prior to maturity, gains or losses in AOCI remain deferred and are reclassified into earnings in the periods in which the hedged forecasted transaction affects earnings.

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 12 of which no single customer represents a significant portion of the Company’s receivable balance. 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.

Commodity and foreign currency risks

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 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 3, 2018 was $26.6 million (January 28, 2017: $37.8 million). These contracts have been designated as cash flow hedges and will be settled over the next 11 months (January 28, 2017: 12 months).

Forward foreign currency exchange contracts (undesignated) — Foreign currency contracts not designated as cash flow hedges are used to limit the impact of movements in foreign exchange rates on recognized foreign currency payables and 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 3, 2018 was $112.7 million (January 28, 2017: $117.8 million).

Commodity forward purchase contracts and net zero-cost collar arrangements (designated) — These contracts are entered into 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 3, 2018 was for approximately 6,000 ounces of gold (January 28, 2017: 94,000 ounces). These contracts have been designated as cash flow hedges and will be settled over the next 12 months (January 28, 2017: 12 months).

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The bank counterparties to the derivative instruments expose Signet to credit-related losses in the event of their non-performance. However, to mitigate that risk, Signet only contracts with counterparties that meet certain minimum requirements under its counterparty risk assessment process. As of February 3, 2018, 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:

	Fair value of derivative assets
(in millions)	Balance sheet location	February 3, 2018		January 28, 2017
Derivatives designated as hedging instruments:
Foreign currency contracts	Other current assets	$	—	$	1.4
Interest rate swaps	Other assets	2.2		0.4
		2.2		1.8
Derivatives not designated as hedging instruments:
Foreign currency contracts	Other current assets	—		1.8
Total derivative assets		$	2.2	$	3.6

	Fair value of derivative liabilities
(in millions)	Balance sheet location	February 3, 2018			January 28, 2017
Derivatives designated as hedging instruments:
Foreign currency contracts	Other current liabilities	$	(1.4	)	$	(0.2	)
Commodity contracts	Other current liabilities	(0.1		)	(3.4		)
		(1.5		)	(3.6		)
Derivatives not designated as hedging instruments:
Foreign currency contracts	Other current liabilities	(0.9		)	—
Total derivative liabilities		$	(2.4	)	$	(3.6	)

Derivatives designated as cash flow hedges

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

(in millions)	February 3, 2018			January 28, 2017
Foreign currency contracts	$	(2.4	)	$	4.1
Commodity contracts	1.4			(2.1		)
Interest rate swaps	2.2			0.4
Gains recorded in AOCI	$	1.2		$	2.4

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

Foreign currency contracts

(in millions)	Income statement caption	Fiscal 2018			Fiscal 2017
Gains recorded in AOCI, beginning of period		$	4.1		$	1.4
Current period (losses) gains recognized in OCI		(3.3		)	5.4
Gains reclassified from AOCI to net income	Cost of sales	(3.2		)	(2.7		)
(Losses) gains recorded in AOCI, end of period		$	(2.4	)	$	4.1

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Commodity contracts

(in millions)	Income statement caption	Fiscal 2018			Fiscal 2017
Losses recorded in AOCI, beginning of period		$	(2.1	)	$	(3.7	)
Current period gains recognized in OCI		5.2			1.8
Gains reclassified from AOCI to net income	Cost of sales	(1.7		)	(0.2		)
Gains (losses) recorded in AOCI, end of period		$	1.4		$	(2.1	)

Interest rate swaps

(in millions)	Income statement caption	Fiscal 2018		Fiscal 2017
Gains (losses) recorded in AOCI, beginning of period		$	0.4	$	(3.4	)
Current period gains recognized in OCI		1.5		1.6
Losses reclassified from AOCI to net income	Interest expense, net	0.3		2.2
Gains recorded in AOCI, end of period		$	2.2	$	0.4

There was no material ineffectiveness related to the Company’s derivative instruments designated in cash flow hedging relationships during Fiscal 2018 and Fiscal 2017. Based on current valuations, the Company expects approximately $0.5 million of net pre-tax derivative gains to be reclassified out of AOCI 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 gains (losses) recognized in net income
(in millions)		Fiscal 2018		Fiscal 2017
Derivatives not designated as hedging instruments:
Foreign currency contracts	Other operating income, net	$	8.4	$	6.3

19. Fair value measurement

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

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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 3, 2018								January 28, 2017
(in millions)	Carrying Value			Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)			Carrying Value			Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)
Assets:
US Treasury securities	$	7.5		$	7.5	$	—		$	8.1		$	8.1	$	—
Corporate equity securities	4.5			4.5		—			3.8			3.8		—
Foreign currency contracts	—			—		—			3.2			—		3.2
Interest rate swaps	2.2			—		2.2			0.4			—		0.4
US government agency securities	5.1			—		5.1			4.4			—		4.4
Corporate bonds and notes	10.8			—		10.8			10.9			—		10.9
Total assets	$	30.1		$	12.0	$	18.1		$	30.8		$	11.9	$	18.9
Liabilities:
Foreign currency contracts	$	(2.3	)	$	—	$	(2.3	)	$	(0.2	)	$	—	$	(0.2	)
Commodity contracts	(0.1		)	—		(0.1		)	(3.4		)	—		(3.4		)
Total liabilities	$	(2.4	)	$	—	$	(2.4	)	$	(3.6	)	$	—	$	(3.6	)

Investments in US Treasury securities and corporate equity securities are based on quoted market prices for identical instruments in active markets, and therefore were classified as Level 1 measurements in the fair value hierarchy. Investments in US government agency securities and corporate bonds and notes are based on quoted prices for similar instruments in active markets, and therefore were classified as Level 2 measurements in the fair value hierarchy. See Note 17 for additional information related to the Company’s available-for-sale investments. The fair values of derivative financial instruments have been determined based on market value equivalents at the balance sheet date, taking into account the current interest rate environment, foreign currency forward rates or commodity forward rates, and therefore were classified as Level 2 measurements in the fair value hierarchy. See Note 18 for additional information related to the Company’s derivatives.

As of February 3, 2018, the fair value of the in-house finance receivable portfolio was approximately 70% of par value. This estimated value was derived from a discounted cash flow model using unobservable inputs, including estimated yields, loss rates, payment rates and discount rates to estimate the fair value associated with the accounts receivable existing as of February 3, 2018, with consideration given to the terms of the agreement entered into with CarVal Investors in March 2018.  See Note 3 for additional information.

The carrying amounts of cash and cash equivalents, other receivables, accounts payable, accrued expenses, other liabilities, income taxes and the revolving credit facility approximate fair value because of the short-term maturity of these amounts.

The fair values of long-term debt instruments were determined using quoted market prices in inactive markets or discounted cash flows based upon current observable market interest rates and therefore were classified as Level 2 measurements in the fair value hierarchy. See Note 21 for classification between current and long-term debt. The carrying amount and fair value of outstanding debt at February 3, 2018 and January 28, 2017 were as follows:

	February 3, 2018				January 28, 2017
(in millions)	Carrying Value		Fair Value		Carrying Value		Fair Value
Long-term debt
Senior notes (Level 2)	$	394.5	$	396.3	$	393.7	$	391.2
Securitization facility (Level 2)	—		—		599.7		600.0
Term loan (Level 2)	323.5		326.2		345.1		348.6
Total	$	718.0	$	722.5	$	1,338.5	$	1,339.8

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. Signet used February 3, 2018 and January 28, 2017 measurement dates in determining the UK Plan’s benefit obligation and fair value of plan assets.

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In September 2017, the Company approved an amendment to freeze benefit accruals under the UK Plan in an effort to reduce anticipated future pension expense. As a result of this amendment, the Company will freeze the pension plan for all participants with an effective date of either December 2017 or October 2019 as elected by the plan participants. All future benefit accruals under the plan shall cease. The amendment to the plan was accounted for in accordance with FASB Accounting Standards Codification (“ASC”) Topic 715, “Compensation - Retirement Benefits.”

The following tables provide information concerning the UK Plan as of and for the fiscal years ended February 3, 2018 and January 28, 2017:

(in millions)	Fiscal 2018			Fiscal 2017
Change in UK Plan assets:
Fair value at beginning of year	$	247.6		$	266.2
Actual return on UK Plan assets	11.0			18.2
Employer contributions	3.2			3.3
Members’ contributions	0.4			0.6
Benefits paid	(8.7		)	(9.9		)
Plan settlements	(10.8		)	—
Foreign currency translation	29.5			(30.8		)
Fair value at end of year	$	272.2		$	247.6

(in millions)	Fiscal 2018			Fiscal 2017
Change in benefit obligation:
Benefit obligation at beginning of year	$	215.7		$	214.9
Service cost	2.1			2.0
Past service cost	—			0.5
Interest cost	6.1			7.2
Members’ contributions	0.4			0.6
Actuarial (gain) loss	2.3			24.1
Benefits paid	(8.7		)	(9.9		)
Plan settlements	(10.8		)	0.0
Foreign currency translation	25.3			(23.7		)
Benefit obligation at end of year	$	232.4		$	215.7
Funded status at end of year	$	39.8		$	31.9

(in millions)	February 3, 2018		January 28, 2017
Amounts recognized in the balance sheet consist of:
Non-current assets	$	39.8	$	31.9

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

(in millions)	February 3, 2018			January 28, 2017			January 30, 2016
Net actuarial losses	$	(51.1	)	$	(55.5	)	$	(43.1	)
Net prior service credits	2.4			9.2			11.1

The estimated actuarial losses and prior service credits for the UK Plan that will be amortized from AOCI into net periodic pension cost over the next fiscal year are $(1.1) million and $0.2 million, respectively.

The accumulated benefit obligation for the UK Plan was $231.1 million and $208.0 million as of February 3, 2018 and January 28, 2017, respectively.

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

(in millions)	Fiscal 2018			Fiscal 2017			Fiscal 2016
Components of net periodic pension benefit (cost):
Service cost	$	(2.1	)	$	(2.0	)	$	(2.6	)
Interest cost	(6.1		)	(7.2		)	(7.7		)
Expected return on UK Plan assets	9.4			10.4			11.5
Amortization of unrecognized actuarial losses	(2.8		)	(1.5		)	(3.4		)
Amortization of unrecognized net prior service credits	1.4			1.9			2.2
Net curtailment gain and settlement loss	3.7			—			—
Net periodic pension benefit	$	3.5		$	1.6		$	—
Other changes in assets and benefit obligations recognized in OCI	(2.9		)	(17.8		)	14.4
Total recognized in net periodic pension benefit (cost) and OCI	$	0.6		$	(16.2	)	$	14.4

	February 3, 2018		January 28, 2017
Assumptions used to determine benefit obligations (at the end of the year):
Discount rate	2.60	%	2.90	%
Salary increases	2.50	%	2.00	%
Assumptions used to determine net periodic pension costs (at the start of the year):
Discount rate	2.90	%	3.60	%
Expected return on UK Plan assets	3.80	%	4.20	%
Salary increases	2.00	%	2.50	%

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 allocate funds to a diverse portfolio of investments, including UK and overseas equities, diversified growth funds, UK corporate bonds, open-ended funds and commercial property. The commercial property investment is through a Pooled Pensions Property Fund that provides a diversified portfolio of property assets. As of February 3, 2018, the target allocation for the UK Plan’s assets was bonds 53%, diversified growth funds 34%, equities 8% 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 3, 2018 and January 28, 2017 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

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The methods Signet uses to determine fair value on an instrument-specific basis are detailed below:

	Fair value measurements as of February 3, 2018								Fair value measurements as of January 28, 2017
(in millions)	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)
Asset category:
Diversified equity securities	$	24.0	$	—	$	24.0	$	—	$	22.3	$	—	$	22.3	$	—
Diversified growth funds	96.3		49.4		46.9		—		80.9		40.7		40.2		—
Fixed income – government bonds	83.9		—		83.9		—		81.0		—		81.0		—
Fixed income – corporate bonds	52.6		—		52.6		—		48.1		—		48.1		—
Property	14.3		—		—		14.3		11.8		—		—		11.8
Cash	1.1		1.1		—		—		3.5		3.5		—		—
Total	$	272.2	$	50.5	$	207.4	$	14.3	$	247.6	$	44.2	$	191.6	$	11.8

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. Property investments are classified in Level 3 of the fair value hierarchy.

The table below sets forth changes in the fair value of the Level 3 investment assets in Fiscal 2018 and Fiscal 2017:

(in millions)	Significant unobservable inputs (Level 3)
Balance as of January 30, 2016	$	13.0
Actual return on assets	(1.2		)
Balance as of January 28, 2017	$	11.8
Actual return on assets	2.5
Balance as of February 3, 2018	$	14.3

Signet contributed $3.2 million to the UK Plan in Fiscal 2018 and expects to contribute a minimum of $2.8 million to the UK Plan in Fiscal 2019. 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, 2015.

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

(in millions)	Expected benefit payments
Fiscal 2019	$	9.6
Fiscal 2020	9.5
Fiscal 2021	10.0
Fiscal 2022	10.3
Fiscal 2023	10.3
Thereafter	$	53.4

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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 2018 were $2.6 million (Fiscal 2017: $1.8 million; Fiscal 2016: $2.0 million).

In the US, Signet operates 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. Signet’s contributions to this plan in Fiscal 2018 were $10.0 million (Fiscal 2017: $14.6 million; Fiscal 2016: $8.3 million). The Company 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 2018 was $3.8 million (Fiscal 2017: $4.6 million; Fiscal 2016: $2.9 million).

The fair value of the assets in the two unfunded, non-qualified deferred compensation plans at February 3, 2018 and January 28, 2017 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 as of February 3, 2018						Fair value measurements as of January 28, 2017
(in millions)	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)
Assets:
Corporate-owned life insurance plans	$	7.3	$	—	$	7.3	$	7.5	$	—	$	7.5
Money market funds	30.2		30.2		—		29.6		29.6		—
Total assets	$	37.5	$	30.2	$	7.3	$	37.1	$	29.6	$	7.5

21. Loans, overdrafts and long-term debt

(in millions)	February 3, 2018			January 28, 2017
Debt:
Senior unsecured notes due 2024, net of unamortized discount	$	398.9		$	398.8
Securitization facility	—			600.0
Senior unsecured term loan	326.2			348.6
Revolving credit facility	—			56.0
Bank overdrafts	14.2			14.2
Total debt	$	739.3		$	1,417.6
Less: Current portion of loans and overdrafts	(44.0		)	(91.1		)
Less: Unamortized capitalized debt issuance fees	(7.1		)	(8.6		)
Total long-term debt	$	688.2		$	1,317.9

Revolving credit facility and term loan (the “Credit Facility”)

During the second quarter of Fiscal 2017, Signet amended and restated its Credit Facility agreement to (i) increase the borrowing capacity under the revolving credit facility from $400 million to $700 million and extend the maturity date to July 2021 and (ii) extend the maturity date of the term loan facility to July 2021 and revise the scheduled quarterly principal repayments to align with the July 2021 maturity date. The amendment of the Credit Facility was accounted for as a modification of existing debt in accordance with ASC Topic 470-50, “Debt Modifications and Extinguishments.”

In connection with the amendment of the revolving credit facility, incremental fees of $1.4 million were incurred and capitalized. Capitalized fees associated with the amended revolving credit facility as of February 3, 2018 total $2.6 million with the unamortized balance recorded as an asset within the consolidated balance sheets. Accumulated amortization related to these capitalized fees as of February 3, 2018 was $1.2 million (January 28, 2017: $0.8 million). Amortization relating to these fees of $0.4 million and $0.4 million was recorded as interest expense in the consolidated income statements for Fiscal 2018 and Fiscal 2017, respectively. As of February 3, 2018 and January 28, 2017, the Company had stand-by letters of credit outstanding of $15.7 million and $15.3 million, respectively, that reduce remaining borrowing availability. The revolving credit facility had a weighted average interest rate of 2.46% and 1.71% during Fiscal 2018 and Fiscal 2017, respectively.

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The senior unsecured term loan had an outstanding principal balance of $357.5 million as of the amendment date. Beginning in October 2016, the Company is required to make scheduled quarterly principal payments equal to the amounts per annum of the outstanding principal balance as follows: 5% in the first year, 7.5% in the second year, 10% in the third year, 12.5% in the fourth year and 15% in the fifth year after the initial payment date, with the balance due in July 2021. Excluding the impact of the interest rate swap designated as a cash flow hedge discussed in Note 18, the term loan had a weighted average interest rate of 2.42% and 1.78% during Fiscal 2018 and Fiscal 2017, respectively.

In connection with the amendment of the term loan facility, incremental fees of $0.7 million were incurred and capitalized. Capitalized fees associated with the amended term loan facility as of February 3, 2018 total $6.2 million with the unamortized balance recorded as a direct deduction from the outstanding liability within the consolidated balance sheets. Accumulated amortization related to these capitalized fees as of February 3, 2018 was $3.5 million (January 28, 2017: $2.7 million). Amortization relating to these fees of $0.8 million and $0.9 million was recorded as interest expense in the consolidated income statements Fiscal 2018 and Fiscal 2017, respectively.

Borrowings under the Credit Facility bear interest at a rate per annum equal to an applicable margin, plus, at the Company’s option, either (a) a base rate or (b) a LIBOR rate. The Credit Facility provides that the Company may voluntarily repay outstanding loans at any time without premium or penalty other than reimbursement of the lender’s redeployment and breakage costs in certain cases. In addition, the Credit Facility contains various customary representations and warranties, financial reporting requirements and other affirmative and negative covenants. The Company is required to maintain at all times a leverage ratio of no greater than 2.50 to 1.00 and a fixed charge coverage ratio of no less than 1.40 to 1.00, both determined as of the end of each fiscal quarter for the trailing twelve months.

Senior unsecured notes due 2024

On May 19, 2014, Signet UK Finance plc (“Signet UK Finance”), a wholly owned subsidiary of the Company, issued $400 million aggregate principal amount of its 4.70% senior unsecured notes due in 2024 (the “Notes”). The Notes were issued under an effective registration statement previously filed with the SEC. Interest on the notes is payable semi-annually on June 15 and December 15 of each year, commencing December 15, 2014. The Notes are jointly and severally guaranteed, on a full and unconditional basis, by the Company and by certain of the Company’s wholly owned subsidiaries (such subsidiaries, the “Guarantors”). See Note 27 for additional information. The Notes were issued pursuant to a base indenture among the Company, Signet UK Finance, the Guarantors and Deutsche Bank Trust Company Americas as trustee, with the indenture containing customary covenants and events of default provisions. The Company received proceeds from the offering of approximately $393.9 million, which were net of underwriting discounts, commissions and offering expenses.

Capitalized fees relating to the senior unsecured notes total $7.0 million. Accumulated amortization related to these capitalized fees as of February 3, 2018 was $2.6 million (January 28, 2017: $1.9 million). The remaining unamortized capitalized fees are recorded as a direct deduction from the outstanding liability within the consolidated balance sheets. Amortization relating to these fees of $0.7 million and $0.7 million was recorded as interest expense in the consolidated income statements for Fiscal 2018 and Fiscal 2017, respectively.

Asset-backed securitization facility

The Company sold an undivided interest in certain credit card receivables to Sterling Jewelers Receivables Master Note Trust (the “Issuer”) and issued two-year revolving asset-backed variable funding notes. As a condition of closing the credit transaction disclosed in Note 3, during the third quarter of Fiscal 2018, the Company terminated the asset-backed securitization facility, which had a principal balance outstanding of $600 million, in order to transfer the receivables free and clear. Unamortized capitalized fees of $0.2 million associated with the asset-backed securitization facility were written-off during the third quarter of Fiscal 2018. Capitalized fees previously totaled $3.4 million, offset by accumulated amortization of $3.4 million as of February 3, 2018 (January 28, 2017: $3.1 million). Amortization relating to these fees of $0.3 million and $0.7 million was recorded as interest expense in the consolidated income statements for Fiscal 2018 and Fiscal 2017, respectively. The asset-backed securitization facility had a weighted average interest rate of 2.50% and 2.05% during Fiscal 2018 and Fiscal 2017, respectively.

Unsecured term loan (the “Bridge Loan”)

In conjunction with the acquisition of R2Net, Signet entered into a $350 million unsecured term loan to finance the transaction. The Company executed and repaid the Bridge Loan during the 13 weeks ended October 28, 2017. The Bridge Loan contained customary fees in addition to interest incurred on borrowings. Fees incurred of $1.4 million and interest of $0.9 million relating to the Bridge Loan were expensed during Fiscal 2018.

Other

As of February 3, 2018 and January 28, 2017, the Company was in compliance with all debt covenants.

As of February 3, 2018 and January 28, 2017, there were $14.2 million and $14.2 million in overdrafts, which represent issued and outstanding checks where no bank balances exist with the right of offset.

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22. Accrued expenses and other current liabilities

(in millions)	February 3, 2018		January 28, 2017
Accrued compensation	$	68.3	$	105.8
Other liabilities	34.7		33.0
Other taxes	36.3		45.1
Payroll taxes	11.8		9.9
Accrued expenses	296.9		284.4
Total accrued expenses and other current liabilities	$	448.0	$	478.2

The sales returns reserve, included in accrued expenses, is as follows:

(in millions)	Fiscal 2018		Fiscal 2017			Fiscal 2016
Sales return reserve, beginning of period	$	13.0	$	14.0		$	15.3
Net adjustment(1)	0.5		(1.0		)	(1.3		)
Sales return reserve, end of period	$	13.5	$	13.0		$	14.0

⁽¹⁾     Net adjustment relates to sales returns previously provided for, changes in estimate and the impact of foreign exchange translation.

Sterling Jewelers and Zale Jewelry segments provide a product lifetime diamond 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, the Company 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. Sterling Jewelers also provides a similar product lifetime guarantee on color gemstones. The warranty reserve for diamond and gemstone guarantee, included in accrued expenses and other current liabilities and other non-current liabilities, is as follows:

(in millions)	Fiscal 2018			Fiscal 2017			Fiscal 2016
Warranty reserve, beginning of period	$	40.0		$	41.9		$	44.9
Warranty expense	8.5			11.5			10.8
Utilized(1)	(11.3		)	(13.4		)	(13.8		)
Warranty reserve, end of period	$	37.2		$	40.0		$	41.9

⁽¹⁾  Includes impact of foreign exchange translation.

(in millions)	February 3, 2018		January 28, 2017
Disclosed as:
Current liabilities(1)	$	11.5	$	13.0
Non-current liabilities (see Note 23)	25.7		27.0
Total warranty reserve	$	37.2	$	40.0

⁽¹⁾  Included within accrued expenses above.

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23. Deferred revenue

Deferred revenue is comprised primarily of ESP and voucher promotions and other as follows:

(in millions)	February 3, 2018		January 28, 2017
Sterling Jewelers ESP deferred revenue	$	738.0	$	737.4
Zale ESP deferred revenue	178.1		168.2
Voucher promotions and other	41.4		30.3
Total deferred revenue	$	957.5	$	935.9
Disclosed as:
Current liabilities	$	288.6	$	276.9
Non-current liabilities	668.9		659.0
Total deferred revenue	$	957.5	$	935.9

ESP deferred revenue

(in millions)	Fiscal 2018			Fiscal 2017
Sterling Jewelers ESP deferred revenue, beginning of period	$	737.4		$	715.1
Plans sold	269.2			290.8
Revenue recognized	(268.6		)	(268.5		)
Sterling Jewelers ESP deferred revenue, end of period	$	738.0		$	737.4

(in millions)	Fiscal 2018			Fiscal 2017
Zale ESP deferred revenue, beginning of period	$	168.2		$	146.1
Plans sold(1)	140.1			150.1
Revenue recognized	(130.2		)	(128.0		)
Zale ESP deferred revenue, end of period	$	178.1		$	168.2

⁽¹⁾  Includes impact of foreign exchange translation.

24. Other liabilities—non-current

(in millions)	February 3, 2018		January 28, 2017
Straight-line rent	$	91.2	$	87.2
Deferred compensation	32.2		40.7
Warranty reserve	25.7		27.0
Lease loss reserve	1.2		1.3
Other liabilities	89.3		57.5
Total other liabilities	$	239.6	$	213.7

A lease loss reserve is recorded for the net present value of the difference between the contractual rent obligations and sublease income expected from the properties. The cash expenditures on the remaining lease loss reserve are expected to be paid over the various remaining lease terms through 2023.

25. Share-based compensation

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

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Impact on results

Share-based compensation expense and the associated tax benefits recognized in the consolidated income statements are as follows:

(in millions)	Fiscal 2018			Fiscal 2017			Fiscal 2016
Share-based compensation expense	$	16.1		$	8.0		$	16.4
Income tax benefit	$	(5.3	)	$	(2.8	)	$	(5.9	)

As of February 3, 2018, unrecognized compensation cost related to unvested awards granted under share-based compensation plans is as follows:

	Unrecognized Compensation Cost		Weighted average period
	(in millions)
Omnibus Plan	$	27.6	2.0 years
Share Saving Plans	4.1		1.7 years
Total	$	31.7

Since April 2012, the Company has 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.

Omnibus Plan

In June 2009, 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 2018, Fiscal 2017 and Fiscal 2016 awards granted under the Omnibus Plan have two elements, time-based restricted stock and performance-based RSUs. The time-based restricted stock has a three year 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 RSUs granted include two performance measures, operating income (subject to certain adjustments) and return on capital employed (“ROCE”), with ROCE measure only applicable to senior executives. For both performance measures, cumulative results achieved during the relevant three year performance period are compared to target metrics 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 2018			Fiscal 2017			Fiscal 2016
Share price	$	65.74		$	109.03		$	136.37
Risk free interest rate	1.4		%	1.0		%	0.8		%
Expected term	2.7 years			2.8 years			2.9 years
Expected volatility	32.3		%	28.5		%	25.4		%
Dividend yield	2.1		%	1.1		%	0.7		%
Fair value	$	63.42		$	106.48		$	134.46

The risk-free interest rate is based on the US Treasury (for US-based award recipients in all fiscal years and UK-based award recipients in Fiscal 2018 and Fiscal 2017) or UK Gilt (for UK-based award recipients in Fiscal 2016) 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 expected term of the award.

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The Fiscal 2018 activity for awards granted under the Omnibus Plan is as follows:

	Omnibus Plans
(in millions, except per share amounts)	No. of shares		Weighted average grant date fair value		Weighted average remaining contractual life	Intrinsic value(1)
Outstanding at January 28, 2017	0.7		$	111.98	1.3 years	$	53.0
Fiscal 2018 activity:
Granted	0.9		63.42
Vested	(0.1	)	105.76
Lapsed	(0.4	)	84.41
Outstanding at February 3, 2018	1.1		$	82.65	1.5 years	$	55.0

⁽¹⁾  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:

(in millions)	Fiscal 2018		Fiscal 2017		Fiscal 2016
Total intrinsic value of awards vested	$	7.1	$	13.6	$	22.2

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 Plan and Irish Sharesave Plan allow eligible employees to purchase common shares at a discount of approximately 20% below a determined market price based on the New York 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 2018			Fiscal 2017			Fiscal 2016
Share price	$	59.84		$	84.37		$	139.18
Exercise price	$	52.00		$	67.24		$	114.67
Risk free interest rate	1.2		%	0.6		%	0.7		%
Expected term	2.7 years			2.7 years			2.6 years
Expected volatility	37.0		%	31.3		%	27.1		%
Dividend yield	2.7		%	1.7		%	0.8		%
Fair value	$	15.22		$	22.82		$	34.76

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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 expected term of the awards.

The Fiscal 2018 activity for awards granted under the Share Saving Plans is as follows:

	Share Saving Plans
(in millions, except per share amounts)	No. of shares		Weighted average exercise price		Weighted average remaining contractual life	Intrinsic value(1)
Outstanding at January 28, 2017	0.3		$	74.30	2.0 years	$	3.0
Fiscal 2018 activity:
Granted	0.1		52.00
Exercised	—		46.55
Lapsed	(0.1	)	82.91
Outstanding at February 3, 2018	0.3		$	62.80	1.8 years	$	—
Exercisable at January 28, 2017	—		$	—		$	—
Exercisable at February 3, 2018	—		$	—		$	—

⁽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:

(in millions, except per share amounts)	Fiscal 2018		Fiscal 2017		Fiscal 2016
Weighted average grant date fair value per share of awards granted	$	15.22	$	22.82	$	34.76
Total intrinsic value of options exercised	$	0.1	$	1.5	$	6.4
Cash received from share options exercised	$	0.3	$	1.4	$	4.0

26. Commitments and contingencies

Operating leases

Signet occupies certain properties and holds machinery and vehicles under operating leases. Rental expense for operating leases is as follows:

(in millions)	Fiscal 2018			Fiscal 2017			Fiscal 2016
Minimum rentals	$	528.1		$	524.4		$	525.7
Contingent rent	8.5			10.2			15.3
Sublease income	(0.5		)	(0.6		)	(0.7		)
Total	$	536.1		$	534.0		$	540.3

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 2019	$	460.3
Fiscal 2020	405.3
Fiscal 2021	371.4
Fiscal 2022	328.8
Fiscal 2023	284.8
Thereafter	907.3
Total	$	2,757.9

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Contingent property liabilities

Approximately 19 property leases had been assigned in the UK by Signet at February 3, 2018 (and remained unexpired and occupied by assignees at that date) and approximately 10 additional properties were sub-leased in the US and UK 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-leased, Signet or one of its 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 3, 2018 Signet has committed to spend $46.9 million (January 28, 2017: $48.4 million) related to capital commitments. These commitments principally relate to the expansion and renovation of stores.

Legal proceedings

Employment practices

As previously reported, in March 2008, a group of private plaintiffs (the “Claimants”) filed a class action lawsuit for an unspecified amount against SJI, a subsidiary of Signet, in the US 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. The Claimants filed a motion for class certification and SJI opposed the motion.  On February 2, 2015, the arbitrator issued a Class Determination Award in which she certified for a class-wide hearing Claimants’ disparate impact declaratory and injunctive relief class claim under Title VII, with a class period of July 22, 2004 through date of trial for the Claimants’ compensation claims and December 7, 2004 through date of trial for Claimants’ promotion claims. The arbitrator otherwise denied Claimants’ motion to certify a disparate treatment class alleged under Title VII, denied a disparate impact monetary damages class alleged under Title VII, and denied an opt-out monetary damages class under the Equal Pay Act. On February 9, 2015, Claimants filed an Emergency Motion To Restrict Communications With The Certified Class And For Corrective Notice. SJI filed its opposition to Claimants’ emergency motion on February 17, 2015, and a hearing was held on February 18, 2015. Claimants’ motion was granted in part and denied in part in an order issued on March 16, 2015. Claimants filed a Motion for Reconsideration Regarding Title VII Claims for Disparate Treatment in Compensation on February 11, 2015, which SJI opposed. April 27, 2015, the arbitrator issued an order denying the Claimants’ Motion. SJI filed with the US District Court for the Southern District of New York a Motion to Vacate the Arbitrator’s Class Certification Award on March 3, 2015, which Claimants opposed. On November 16, 2015, the US District Court for the Southern District of New York granted SJI’s Motion to Vacate the Arbitrator’s Class Certification Award in part and denied it in part. On December 3, 2015, SJI filed with the United States Court of Appeals for the Second Circuit SJI’s Notice of Appeal of the District Court’s November 16, 2015 Opinion and Order. On November 25, 2015, SJI filed a Motion to Stay the AAA Proceedings while SJI appeals the decision of the US District Court for the Southern District of New York to the United States Court of Appeals for the Second Circuit, which Claimants opposed. The arbitrator issued an order denying SJI’s Motion to Stay on February 22, 2016.SJI filed its Brief and Special Appendix with the Second Circuit on March 16, 2016. The matter was fully briefed and oral argument was heard by the U.S. Court of Appeals for the Second Circuit on November 2, 2016. On April 6, 2015, Claimants filed in the AAA Claimants’ Motion for Clarification or in the Alternative Motion for Stay of the Effect of the Class Certification Award as to the Individual Intentional Discrimination Claims, which SJI opposed. On June 15, 2015, the arbitrator granted the Claimants’ motion. On March 6, 2017, Claimants filed Claimants’ Motion for Conditional Certification of Claimants’ Equal Pay Act Claims and Authorization of Notice, which SJI opposed The arbitrator heard oral argument on Claimants’ Motion on December 18, 2015 and, on February 29, 2016, issued an Equal Pay Act Collective Action Conditional Certification Award and Order Re Claimants’ Motion For Tolling Of EPA Limitations Period, conditionally certifying Claimants’ Equal Pay Act claims as a collective action, and tolling the statute of limitations on EPA claims to October 16, 2003 to ninety days after notice issues to the putative members of the collective action. SJI filed in the AAA a Motion To Stay Arbitration Pending The District Court’s Consideration Of Respondent’s Motion To Vacate Arbitrator’s Equal Pay Act Collective Action Conditional Certification Award And Order Re Claimants’ Motion For Tolling Of EPA Limitations Period on March 10, 2016. SJI filed in the AAA a Renewed Motion To Stay Arbitration Pending The District Court’s Resolution Of Sterling’s Motion To Vacate Arbitrator’s Equal Pay Act Collective Action Conditional Certification Award And Order Re Claimants’ Motion For Tolling Of EPA Limitations Period on March 31, 2016, which Claimants opposed. On April 5, 2016, the arbitrator denied SJI’s Motion. On March 23, 2016 SJI filed with the US District Court for the Southern District of New York a Motion To Vacate The Arbitrator’s Equal Pay Act Collective Action Conditional Certification Award And Order Re Claimants’ Motion For Tolling Of EPA Limitations Period, which Claimants opposed. SJI’s Motion was denied on May 22, 2016. On May 31, 2016, SJI filed a Notice Of Appeal of Judge Rakoff’s opinion and order to the Second Circuit Court of Appeals, which Claimant’s opposed. On June 1, 2017, the Second Circuit Court of Appeals dismissed SJI’s appeal for lack of appellate jurisdiction. Claimants filed a Motion For Amended Class Determination Award on November 18, 2015, and on March 31, 2016 the arbitrator entered an order amending the Title VII class certification award to preclude class members from requesting exclusion from the injunctive and declaratory relief class certified in the arbitration. The arbitrator issued a Bifurcated Case Management Plan on April 5, 2016, and ordered into effect the parties’ Stipulation Regarding Notice Of Equal Pay Act Collective Action And Related Notice Administrative Procedures on April 7, 2016. SJI filed in the AAA a Motion For Protective Order on May 2, 2016, which Claimants opposed. The matter was fully briefed and oral argument was heard on July 22, 2016. The motion was granted in part on January 27, 2017. Notice to EPA collective action members was issued on May 3, 2016, and the opt-in period for these notice recipients closed on August 1, 2016. Approximately, 10,314 current and former employees submitted consent forms to opt in to the collective action; however, some have withdrawn their consents. The number of valid consents is disputed and yet to be determined. SJI

116

believes the number of valid consents to be approximately 9,124. On July 24, 2017, the United States Court of Appeals for the Second Circuit issued its unanimous Summary Order that held that the absent class members “never consented” to the Arbitrator determining the permissibility of class arbitration under the agreements, and remanded the matter to the District Court to determine whether the Arbitrator exceeded her authority by certifying the Title VII class that contained absent class members who had not opted in the litigation. On August 7, 2017, SJI filed its Renewed Motion to Vacate the Class Determination Award relative to absent class members with the District Court. The matter was fully briefed and an oral argument was heard on October 16, 2017. On January 15, 2018, District Court granted SJI’s Motion finding that the Arbitrator exceeded her authority by binding non-parties (absent class members) to the Title VII claim. The District Court further held that the RESOLVE Agreement does not permit class action procedures, thereby, reducing the Claimants in the Title VII matter from 70,000 to 254. Claimants dispute that the number of claimants in the Title VII is 254. On January 18, 2018, the Claimants filed a Notice of Appeal with the United States Court of Appeals for the Second Circuit. The appeal will be fully briefed by April 16, 2018. The Second Circuit has scheduled oral argument for May 7, 2018, on this appeal. On November 10, 2017, SJI filed in the arbitration motions for summary judgment, and for decertification, of Claimants’ Equal Pay Act and Title VII promotions claims. On January 30, 2018, oral argument on SJI’s motions was heard. On January 26, 2018, SJI filed a Motion to Vacate The Equal Pay Act Collective Action Award And Tolling Order asserting that the Arbitrator exceeded her authority by conditionally certifying the Equal Pay Act claim and allowing the absent claimants to opt-in the litigation. On March 12, 2018, the Arbitrator denied SJI’s Motion to Vacate The Equal Pay Act Collective Action Award and Tolling Order. SJI still has a pending motion seeking decertification of the EPA Collective Action before the Arbitrator. On March 19, 2018, the Arbitrator issued an Order partially granting SJI’s Motion to Amend the Arbitrator’s November 2, 2017, Bifurcated Seventh Amended Case Management Plan resulting in a continuance of the May 14, 2018 trial date. A new trial date has not been set.

SJI denies the allegations of the Claimants and has been defending the case vigorously. At this point, no outcome or possible loss or range of losses, if any, arising from the litigation is able to be estimated.

Also, as previously reported, on September 23, 2008, the US Equal Employment Opportunity Commission (“EEOC”) filed a lawsuit against SJI in the US District Court for the Western District of New York. This suit was settled on May 5, 2017, as further described below. The EEOC’s lawsuit alleged that SJI 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 asserted 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, SJI 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 SJI’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 SJI 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 11, 2014 entered an order dismissing the action with prejudice. On May 12, 2014, the EEOC filed its Notice of Appeal of the District Court Judge’s dismissal of the action to United States Court of Appeals for the Second Circuit. The parties fully briefed the appeal and oral argument occurred on May 5, 2015. On September 9, 2015, the United States Court of Appeals for the Second Circuit issued a decision vacating the District Court’s order and remanding the case back to the District Court for further proceedings. SJI filed a Petition for Panel Rehearing and En Banc Review with the United States Court of Appeals for the Second Circuit, which was denied on December 1, 2015. On December 4, 2015, SJI filed in the United States Court of Appeals for the Second Circuit a Motion Of Appellee Sterling Jewelers Inc. For Stay Of Mandate Pending Petition For Writ Of Certiorari. The Motion was granted by the Second Circuit on December 10, 2015. SJI filed a Petition For Writ Of Certiorari in the Supreme Court of the United States on April 29, 2016, which was denied. The case was remanded to the Western District of New York and on November 2, 2016, the Court issued a case scheduling order. On January 25, 2017, the parties filed a joint motion to extend case scheduling order deadlines. The motion was granted on January 27, 2017. On May 5, 2017 the U.S. District Court for the Western District of New York approved and entered the Consent Decree jointly proposed by the EEOC and SJI, resolving all of the EEOC’s claims against SJI in this litigation for various injunctive relief including but not limited to the appointment of an employment practices expert to review specific policies and practices, a compliance officer to be employed by SJI, as well as obligations relative to training, notices, reporting and record-keeping. The Consent Decree does not require an outside third party monitor or require any monetary payment. The duration of the Consent Decree is three years and three months, expiring on August 4, 2020.

On May 12, 2017, SJI received notice that a Class Action Complaint against SJI and Signet Jewelers Ltd. (improperly named as a party) was filed by Veronica Masten in the Superior Court of California, County of Los Angeles, alleging violations of various wage and hour labor laws. The claims include: (1) failure to pay overtime; (2) failure to provide meal periods; (3) failure to reimburse business expenses; (4) failure to provide itemized wage statements; (5) failure to timely pay wages; and a derivative claims for (6) unfair competition. SJI filed its Answer to the Complaint on June 13, 2017. On June 14, 2017, SJI removed this matter to the United States District Court for the Central District of California. After engaging in limited discovery, Plaintiff agreed to pursue her claims on an individual basis in a separate forum, and sought to dismiss her claims in this action without prejudice. Plaintiff filed a request for dismissal with the district court on December 18, 2017. The Court has not yet formally ruled on the dismissal, however, the Court’s docket indicates that the matter is closed. 

117

Shareholder Actions

In August 2016, two alleged Company shareholders each filed a putative class action complaint in the United States District Court for the Southern District of New York against the Company and its then-current Chief Executive Officer and current Chief Financial Officer (Nos. 16-cv-6728 and 16-cv-6861, the “S.D.N.Y. cases”). On September 16, 2016, the Court consolidated the S.D.N.Y. cases under case number 16-cv-6728. On April 3, 2017, the plaintiffs filed a second amended complaint, purportedly on behalf of persons that acquired the Company’s securities on or between August 29, 2013, and February 27, 2017, naming as defendants the Company, its then-current and former Chief Executive Officers, and its current and former Chief Financial Officers. The second amended complaint alleged that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by, among other things, misrepresenting the Company’s business and earnings by (i) failing to disclose that the Company was allegedly having issues ensuring the safety of customers’ jewelry while in the Company’s custody for repairs, which allegedly damaged customer confidence; (ii) making misleading statements about the Company’s credit portfolio; and (iii) failing to disclose reports of sexual harassment allegations that were raised by claimants in an ongoing pay and promotion gender discrimination class arbitration (the “Arbitration”). The second amended complaint alleged that the Company’s share price was artificially inflated as a result of the alleged misrepresentations and sought unspecified compensatory damages and costs and expenses, including attorneys’ and experts’ fees.

In March 2017, two other alleged Company shareholders each filed a putative class action complaint in the United States District Court for the Northern District of Texas against the Company and its then-current and former Chief Executive Officers (Nos. 17-cv-875 and 17-cv-923, the “N.D. Tex. cases”). Those complaints were nearly identical to each other and alleged that the defendants’ statements concerning the Arbitration violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The N.D. Tex. cases were subsequently transferred to the Southern District of New York and consolidated with the S.D.N.Y. cases (the “Consolidated Action”). On July 27, 2017, the Court appointed a lead plaintiff and lead plaintiff’s counsel in the Consolidated Action. On August 3, 2017, the Court ordered the lead plaintiff in the Consolidated Action to file a third amended complaint by September 29, 2017. On September 29, 2017, the lead plaintiff filed a third amended complaint that covered a putative class period of August 29, 2013, through May 24, 2017, and that asserted substantially similar claims to the second amended complaint, except that it omitted the claim based on defendants’ alleged misstatements concerning the security of customers’ jewelry while in the Company’s custody for repairs. The defendants moved to dismiss the third amended complaint on December 1, 2017. On December 4, 2017, the Court entered an order permitting the lead plaintiff to amend its complaint as of right by December 22, 2017, and providing that the lead plaintiff would not be given any further opportunity to amend its complaint to address the issues raised in the defendants’ motion to dismiss.

On December 15, 2017, Nebil Aydin filed a putative class action complaint in the United States District Court for the Southern District of New York against the Company and its current Chief Executive Officer and Chief Financial Officer (No. 17-cv-9853). The Aydin complaint alleged that the defendants made misleading statements regarding the Company’s credit portfolio between August 24, 2017, and November 21, 2017, in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and sought unspecified compensatory damages and costs and expenses, including attorneys’ and experts’ fees. On January 7, 2018, the Aydin case was consolidated into the Consolidated Action.

On December 22, 2017, the lead plaintiff in the Consolidated Action filed its fourth amended complaint, which asserted substantially the same claims as its third amended complaint for an expanded class period of August 28, 2013, through December 1, 2017. On January 26, 2017, the defendants moved to dismiss the fourth amended complaint. This motion was fully briefed as of March 9, 2018.

On March 20, 2018, the Court granted the lead plaintiff leave to file a fifth amended complaint. On March 22, 2018, the lead plaintiff in the Consolidated Action filed its fifth amended complaint which asserts substantially the same claims as its fourth amended complaint for an expanded class period of August 29, 2013, through March 13, 2018. The prior motion to dismiss was denied as moot. The defendants will file a new motion to dismiss the fifth amended complaint by March 30, 2018.

Derivative Action

On September 1, 2017, Josanne Aungst filed a putative shareholder derivative action entitled Aungst v. Light, et al., No. CV-2017-3665, in the Court of Common Pleas for Summit County Ohio. The complaint in this action, which purports to have been brought by Ms. Aungst on behalf of the Company, names certain current and former directors and officers of the Company as defendants and alleges claims for breach of fiduciary duty, abuse of control, and gross mismanagement.  The complaint challenges certain public disclosures and conduct relating to the allegations that were raised by the claimants in the Arbitration. The complaint also alleges that the Company’s share price was artificially inflated as a result of alleged misrepresentations and omissions. The complaint seeks money damages on behalf of the Company, changes to the Company’s corporate governance, and other equitable relief, as well as plaintiff’s legal fees and costs. The defendants’ motion to dismiss the complaint is fully briefed and awaiting decision.

The Company believes that the claims brought in these shareholder actions are without merit and cannot estimate a range of potential liability, if any, at this time.

118

Regulatory Matters

On September 6, 2017, the Consumer Financial Protection Bureau (“CFPB”) notified Signet that, in accordance with the CFPB’s discretionary Notice and Opportunity to Respond and Advise (“NORA”) process, the CFPB’s Office of Enforcement is considering recommending that the CFPB take legal action against Signet, alleging that Signet violated §§ 1031 and 1036 of the Consumer Financial Protection Act of 2010, 12 U.S.C. §§ 5531, 5536, and the Truth in Lending Act, 15 U.S.C. § 1601 et seq., and its implementing regulation, relating to in-store: credit practices, promotions, and payment protection products. The purpose of a NORA letter is to provide a party being investigated an opportunity to present its position to the CFPB before an enforcement action is recommended or commenced. This notice stems from an inquiry that commenced in late 2016 when Signet received and responded to an initial Civil Investigative Demand. Signet has cooperated and continues to fully cooperate with the CFPB. On September 27, 2017, Signet submitted a response to the NORA letter to the CFPB, which stated its belief that the potential claims lack merit.

The Attorney General for the State of New York (“NYAG”) is investigating similar issues under its jurisdiction. Signet has been cooperating with the NYAG’s investigation which remains ongoing.

Signet is currently unable to predict the timing or outcome of the NORA process or NYAG investigation. Signet continues to believe that its acts and practices relating to the matters under investigation are lawful and, as such, has concluded the possibility of an unfavorable outcome was remote as of February 3, 2018.

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 believes are not significant to Signet’s consolidated financial position, results of operations or cash flows.

27. 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 have guaranteed the obligations under certain debt securities that have been 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 condensed consolidating financial 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 intra-entity activity and balances.

119

Condensed Consolidating Income Statement

For the 53 week period endedFebruary 3, 2018

(in millions)	Signet Jewelers Limited			Signet UK Finance plc			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Sales	$	—		$	—		$	5,866.6		$	386.4		$	—		$	6,253.0
Cost of sales	—			—			(3,926.6		)	(136.4		)	—			(4,063.0		)
Gross margin	—			—			1,940.0			250.0			—			2,190.0
Selling, general and administrative expenses	(1.9		)	—			(1,738.2		)	(132.1		)	—			(1,872.2		)
Credit transaction, net	—			—			1.3			—			—			1.3
Other operating income, net	0.1			—			260.3			0.4			—			260.8
Operating (loss) income	(1.8		)	—			463.4			118.3			—			579.9
Intra-entity interest income (expense)	—			18.8			(190.2		)	171.4			—			—
Interest expense, net	—			(19.9		)	(21.6		)	(11.2		)	—			(52.7		)
(Loss) income before income taxes	(1.8		)	(1.1		)	251.6			278.5			—			527.2
Income taxes	—			0.2			(21.3		)	13.2			—			(7.9		)
Equity in income of subsidiaries	521.1			—			229.6			233.1			(983.8		)	—
Net income (loss)	519.3			(0.9		)	459.9			524.8			(983.8		)	519.3
Dividends on redeemable convertible preferred shares	(32.9		)	—			—			—			—			(32.9		)
Net income (loss) attributable to common shareholders	$	486.4		$	(0.9	)	$	459.9		$	524.8		$	(983.8	)	$	486.4

120

Condensed Consolidating Income Statement

For the 52 week period endedJanuary 28, 2017

(in millions)	Signet Jewelers Limited			Signet UK Finance plc			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Sales	$	—		$	—		$	6,141.9		$	266.5		$	—		$	6,408.4
Cost of sales	—			—			(3,997.2		)	(50.4		)	—			(4,047.6		)
Gross margin	—			—			2,144.7			216.1			—			2,360.8
Selling, general and administrative expenses	(1.3		)	—			(1,775.1		)	(103.8		)	—			(1,880.2		)
Other operating income, net	—			—			293.8			(11.2		)	—			282.6
Operating (loss) income	(1.3		)	—			663.4			101.1			—			763.2
Intra-entity interest income (expense)	—			18.8			(188.4		)	169.6			—			—
Interest expense, net	—			(19.8		)	(16.6		)	(13.0		)	—			(49.4		)
(Loss) income before income taxes	(1.3		)	(1.0		)	458.4			257.7			—			713.8
Income taxes	—			0.2			(175.1		)	4.3			—			(170.6		)
Equity in income of subsidiaries	544.5			—			276.4			295.7			(1,116.6		)	—
Net income (loss)	543.2			(0.8		)	559.7			557.7			(1,116.6		)	543.2
Dividends on redeemable convertible preferred shares	(11.9		)	—			—			—			—			(11.9		)
Net income (loss) attributable to common shareholders	$	531.3		$	(0.8	)	$	559.7		$	557.7		$	(1,116.6	)	$	531.3

Condensed Consolidating Income Statement

For the 52 week period endedJanuary 30, 2016

(in millions)	Signet Jewelers Limited			Signet UK Finance plc			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Sales	$	—		$	—		$	6,444.8		$	105.4		$	—		$	6,550.2
Cost of sales	—			—			(4,089.3		)	(20.5		)	—			(4,109.8		)
Gross margin	—			—			2,355.5			84.9			—			2,440.4
Selling, general and administrative expenses	(2.2		)	—			(1,942.7		)	(42.7		)	—			(1,987.6		)
Other operating income, net	—			—			254.8			(3.9		)	—			250.9
Operating (loss) income	(2.2		)	—			667.6			38.3			—			703.7
Intra-entity interest income (expense)	—			18.8			(186.0		)	167.2			—			—
Interest expense, net	—			(19.9		)	(14.8		)	(11.2		)	—			(45.9		)
(Loss) income before income taxes	(2.2		)	(1.1		)	466.8			194.3			—			657.8
Income taxes	—			0.2			(192.7		)	2.6			—			(189.9		)
Equity in income of subsidiaries	470.1			—			281.4			293.9			(1,045.4		)	—
Net income (loss)	467.9			(0.9		)	555.5			490.8			(1,045.4		)	467.9
Dividends on redeemable convertible preferred shares	—			—			—			—			—			—
Net income (loss) attributable to common shareholders	$	467.9		$	(0.9	)	$	555.5		$	490.8		$	(1,045.4	)	$	467.9

121

Condensed Consolidating Statement of Comprehensive Income

For the 53 week period endedFebruary 3, 2018

(in millions)	Signet Jewelers Limited			Signet UK Finance plc			Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Eliminations			Consolidated
Net income (loss)	$	519.3		$	(0.9	)	$	459.9		$	524.8	$	(983.8	)	$	519.3
Other comprehensive (loss) income:
Foreign currency translation adjustments	50.9			—			50.2			0.7		(50.9		)	50.9
Available-for-sale securities:
Unrealized gain (loss)	0.3			—			—			0.3		(0.3		)	0.3
Cash flow hedges:
Unrealized gain (loss)	1.8			—			1.8			—		(1.8		)	1.8
Reclassification adjustment for losses to net income	(3.5		)	—			(3.5		)	—		3.5			(3.5		)
Pension plan:
Actuarial gain (loss)	—			—			—			—		—			—
Reclassification adjustment to net income for amortization of actuarial losses	2.2			—			2.2			—		(2.2		)	2.2
Prior service costs	(0.5		)	—			(0.5		)	—		0.5			(0.5		)
Reclassification adjustment to net income for amortization of net prior service credits	(1.1		)	—			(1.1		)	—		1.1			(1.1		)
Net curtailment gain and settlement loss	(3.0		)	—			(3.0		)	—		3.0			(3.0		)
Total other comprehensive (loss) income	47.1			—			46.1			1.0		(47.1		)	47.1
Total comprehensive income (loss)	$	566.4		$	(0.9	)	$	506.0		$	525.8	$	(1,030.9	)	$	566.4

122

Condensed Consolidating Statement of Comprehensive Income

For the 52 week period endedJanuary 28, 2017

(in millions)	Signet Jewelers Limited			Signet UK Finance plc			Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Eliminations			Consolidated
Net income (loss)	$	543.2		$	(0.8	)	$	559.7		$	557.7	$	(1,116.6	)	$	543.2
Other comprehensive (loss) income:
Foreign currency translation adjustments	(25.6		)	—			(31.2		)	5.6		25.6			(25.6		)
Available-for-sale securities:
Unrealized gain (loss)	—			—			—			—		—			—
Cash flow hedges:
Unrealized gain (loss)	6.9			—			6.9			—		(6.9		)	6.9
Reclassification adjustment for losses to net income	(0.6		)	—			(0.6		)	—		0.6			(0.6		)
Pension plan:
Actuarial gain (loss)	(13.6		)	—			(13.6		)	—		13.6			(13.6		)
Reclassification adjustment to net income for amortization of actuarial losses	1.2			—			1.2			—		(1.2		)	1.2
Prior service costs	(0.4		)	—			(0.4		)	—		0.4			(0.4		)
Reclassification adjustment to net income for amortization of net prior service credits	(1.5		)	—			(1.5		)	—		1.5			(1.5		)
Total other comprehensive (loss) income	(33.6		)	—			(39.2		)	5.6		33.6			(33.6		)
Total comprehensive income (loss)	$	509.6		$	(0.8	)	$	520.5		$	563.3	$	(1,083.0	)	$	509.6

Condensed Consolidating Statement of Comprehensive Income

For the 52 week period endedJanuary 30, 2016

(in millions)	Signet Jewelers Limited			Signet UK Finance plc			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	467.9		$	(0.9	)	$	555.5		$	490.8		$	(1,045.4	)	$	467.9
Other comprehensive (loss) income:
Foreign currency translation adjustments	(40.2		)	—			(44.8		)	4.6			40.2			(40.2		)
Available-for-sale securities:
Unrealized gain (loss)	(0.4		)	—			—			(0.4		)	0.4			(0.4		)
Cash flow hedges:
Unrealized gain (loss)	(11.8		)	—			(11.8		)	—			11.8			(11.8		)
Reclassification adjustment for losses to net income	3.5			—			3.5			—			(3.5		)	3.5
Pension plan:
Actuarial gain (loss)	10.9			—			10.9			—			(10.9		)	10.9
Reclassification adjustment to net income for amortization of actuarial losses	2.7			—			2.7			—			(2.7		)	2.7
Prior service costs	(0.5		)	—			(0.5		)	—			0.5			(0.5		)
Reclassification adjustment to net income for amortization of net prior service credits	(1.7		)	—			(1.7		)	—			1.7			(1.7		)
Total other comprehensive (loss) income	(37.5		)	—			(41.7		)	4.2			37.5			(37.5		)
Total comprehensive income (loss)	$	430.4		$	(0.9	)	$	513.8		$	495.0		$	(1,007.9	)	$	430.4

123

Condensed Consolidating Balance Sheet

February 3, 2018

(in millions)	Signet Jewelers Limited		Signet UK Finance plc			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	1.7	$	0.1		$	150.5	$	72.8		$	—		$	225.1
Accounts receivable, net	—		—			692.5		—			—			692.5
Intra-entity receivables, net	—		2.9			—		166.9			(169.8		)	—
Other receivables	—		—			62.0		25.2			—			87.2
Other current assets	—		—			154.4		3.8			—			158.2
Income taxes	—		—			2.6		—			—			2.6
Inventories	—		—			2,201.3		79.2			—			2,280.5
Total current assets	1.7		3.0			3,263.3		347.9			(169.8		)	3,446.1
Non-current assets:
Property, plant and equipment, net	—		—			870.1		7.8			—			877.9
Goodwill	—		—			516.4		305.3			—			821.7
Intangible assets, net	—		—			410.9		70.6			—			481.5
Investment in subsidiaries	3,150.2		—			1,163.6		606.0			(4,919.8		)	—
Intra-entity receivables, net	—		400.0			—		2,859.0			(3,259.0		)	—
Other assets	—		—			140.1		31.1			—			171.2
Deferred tax assets	—		—			1.3		0.1			—			1.4
Retirement benefit asset	—		—			39.8		—			—			39.8
Total assets	$	3,151.9	$	403.0		$	6,405.5	$	4,227.8		$	(8,348.6	)	$	5,839.6
Liabilities and Shareholders’ equity
Current liabilities:
Loans and overdrafts	$	—	$	(0.7	)	$	44.7	$	—		$	—		$	44.0
Accounts payable	—		—			202.2		34.8			—			237.0
Intra-entity payables, net	11.3		—			158.5		—			(169.8		)	—
Accrued expenses and other current liabilities	27.2		2.4			397.5		20.9			—			448.0
Deferred revenue	—		—			276.2		12.4			—			288.6
Income taxes	—		(0.2		)	36.7		(16.9		)	—			19.6
Total current liabilities	38.5		1.5			1,115.8		51.2			(169.8		)	1,037.2
Non-current liabilities:
Long-term debt	—		395.2			293.0		—			—			688.2
Intra-entity payables, net	—		—			3,259.0		—			(3,259.0		)	—
Other liabilities	—		—			233.0		6.6			—			239.6
Deferred revenue	—		—			668.9		—			—			668.9
Deferred tax liabilities	—		—			76.7		15.6			—			92.3
Total liabilities	38.5		396.7			5,646.4		73.4			(3,428.8		)	2,726.2
Series A redeemable convertible preferred shares	613.6		—			—		—			—			613.6
Total shareholders’ equity	2,499.8		6.3			759.1		4,154.4			(4,919.8		)	2,499.8
Total liabilities, redeemable convertible preferred shares and shareholders’ equity	$	3,151.9	$	403.0		$	6,405.5	$	4,227.8		$	(8,348.6	)	$	5,839.6

124

Condensed Consolidating Balance Sheet

January 28, 2017

(in millions)	Signet Jewelers Limited		Signet UK Finance plc			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	1.7	$	0.1		$	70.3	$	26.6		$	—		$	98.7
Accounts receivable, net	—		—			1,858.0		—			—			1,858.0
Intra-entity receivables, net	12.7		—			145.1		—			(157.8		)	—
Other receivables	—		—			71.1		24.8			—			95.9
Other current assets	—		—			131.4		4.9			—			136.3
Income taxes	—		—			4.4		—			—			4.4
Inventories	—		—			2,371.8		77.5			—			2,449.3
Total current assets	14.4		0.1			4,652.1		133.8			(157.8		)	4,642.6
Non-current assets:
Property, plant and equipment, net	—		—			818.5		4.4			—			822.9
Goodwill	—		—			514.0		3.6			—			517.6
Intangible assets, net	—		—			417.0		—			—			417.0
Investment in subsidiaries	3,117.6		—			721.6		590.9			(4,430.1		)	—
Intra-entity receivables, net	—		402.9			—		3,647.1			(4,050.0		)	—
Other assets	—		—			134.8		30.3			—			165.1
Deferred tax assets	—		—			0.6		0.1			—			0.7
Retirement benefit asset	—		—			31.9		—			—			31.9
Total assets	$	3,132.0	$	403.0		$	7,290.5	$	4,410.2		$	(8,637.9	)	$	6,597.8
Liabilities and Shareholders’ equity
Current liabilities:
Loans and overdrafts	$	—	$	(0.7	)	$	91.8	$	—		$	—		$	91.1
Accounts payable	—		—			248.2		7.5			—			255.7
Intra-entity payables, net	—		—			—		157.8			(157.8		)	—
Accrued expenses and other current liabilities	29.9		2.5			429.2		16.6			—			478.2
Deferred revenue	—		—			275.5		1.4			—			276.9
Income taxes	—		(0.2		)	115.5		(13.5		)	—			101.8
Total current liabilities	29.9		1.6			1,160.2		169.8			(157.8		)	1,203.7
Non-current liabilities:
Long-term debt	—		394.3			323.6		600.0			—			1,317.9
Intra-entity payables, net	—		—			4,050.0		—			(4,050.0		)	—
Other liabilities	—		—			208.7		5.0			—			213.7
Deferred revenue	—		—			659.0		—			—			659.0
Deferred tax liabilities	—		—			101.4		—			—			101.4
Total liabilities	29.9		395.9			6,502.9		774.8			(4,207.8		)	3,495.7
Series A redeemable convertible preferred shares	611.9		—			—		—			—			611.9
Total shareholders’ equity	2,490.2		7.1			787.6		3,635.4			(4,430.1		)	2,490.2
Total liabilities, redeemable convertible preferred shares and shareholders’ equity	$	3,132.0	$	403.0		$	7,290.5	$	4,410.2		$	(8,637.9	)	$	6,597.8

125

Condensed Consolidating Statement of Cash Flows

For the 53 week period endedFebruary 3, 2018

(in millions)	Signet Jewelers Limited			Signet UK Finance plc			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	767.8		$	(0.1	)	$	1,856.7		$	586.0		$	(1,269.9	)	$	1,940.5
Investing activities
Purchase of property, plant and equipment	—			—			(236.3		)	(1.1		)	—			(237.4		)
Investment in subsidiaries	(219.9		)	—			(25.0		)	—			244.9			—
Purchase of available-for-sale securities	—			—			—			(2.4		)	—			(2.4		)
Proceeds from available-for-sale securities	—			—			—			2.2			—			2.2
Acquisition of R2Net, net of cash acquired	—			—			(331.8		)	—			—			(331.8		)
Net cash (used in) provided by investing activities	(219.9		)	—			(593.1		)	(1.3		)	244.9			(569.4		)
Financing activities
Dividends paid on common shares	(76.5		)	—			—			—			—			(76.5		)
Dividends paid on redeemable convertible preferred shares	(34.7		)	—			—			—			—			(34.7		)
Intra-entity dividends paid	—			—			(800.0		)	(469.9		)	1,269.9			—
Repurchase of common shares	(460.0		)	—			—			—			—			(460.0		)
Proceeds from issuance of common shares	0.3			—			219.9			25.0			(244.9		)	0.3
Net settlement of equity based awards	(2.9		)	—			—			—			—			(2.9		)
Proceeds from term loan	—			—			350.0			—			—			350.0
Repayments of term loan	—			—			(372.3		)	—			—			(372.3		)
Proceeds from securitization facility	—			—			—			1,745.9			—			1,745.9
Repayment of securitization facility	—			—			—			(2,345.9		)	—			(2,345.9		)
Proceeds from revolving credit facility	—			—			814.0			—			—			814.0
Repayments of revolving credit facility	—			—			(870.0		)	—			—			(870.0		)
Payment of debt issuance costs	—			—			(1.4		)	—			—			(1.4		)
Proceeds from (repayment of) short-term borrowings	—			—			(0.1		)	—			—			(0.1		)
Intra-entity activity, net	25.9			0.1			(532.2		)	506.2			—			—
Net cash (used in) provided by financing activities	(547.9		)	0.1			(1,192.1		)	(538.7		)	1,025.0			(1,253.6		)
Cash and cash equivalents at beginning of period	1.7			0.1			70.3			26.6			—			98.7
Increase (decrease) in cash and cash equivalents	—			—			71.5			46.0			—			117.5
Effect of exchange rate changes on cash and cash equivalents	—			—			8.7			0.2			—			8.9
Cash and cash equivalents at end of period	$	1.7		$	0.1		$	150.5		$	72.8		$	—		$	225.1

126

Condensed Consolidating Statement of Cash Flows

For the 52 week period endedJanuary 28, 2017

(in millions)	Signet Jewelers Limited			Signet UK Finance plc			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	1,057.9		$	0.1		$	724.8		$	525.6		$	(1,630.1	)	$	678.3
Investing activities
Purchase of property, plant and equipment	—			—			(277.9		)	(0.1		)	—			(278.0		)
Investment in subsidiaries	(610.0		)	—			—			—			610.0			—
Purchase of available-for-sale securities	—			—			—			(10.4		)	—			(10.4		)
Proceeds from available-for-sale securities	—			—			—			10.0			—			10.0
Net cash (used in) provided by investing activities	(610.0		)	—			(277.9		)	(0.5		)	610.0			(278.4		)
Financing activities
Dividends paid on common shares	(75.6		)	—			—			—			—			(75.6		)
Intra-entity dividends paid	—			—			(730.0		)	(900.1		)	1,630.1			—
Repurchase of common shares	(1,000.0		)	—			—			—			—			(1,000.0		)
Proceeds from issuance of common shares	2.1			—			610.0			—			(610.0		)	2.1
Proceeds from issuance of redeemable convertible preferred shares, net of issuance costs	611.3			—			—			—			—			611.3
Net settlement of equity based awards	(4.9		)	—			—			—			—			(4.9		)
Excess tax benefit from exercise of share awards	—			—			2.4			—			—			2.4
Repayments of term loan	—			—			(16.4		)	—			—			(16.4		)
Proceeds from securitization facility	—			—			—			2,404.1			—			2,404.1
Repayment of securitization facility	—			—			—			(2,404.1		)	—			(2,404.1		)
Proceeds from revolving credit facility	—			—			1,270.0			—			—			1,270.0
Repayments of revolving credit facility	—			—			(1,214.0		)	—			—			(1,214.0		)
Payment of debt issuance costs	—			—			(2.1		)	(0.6		)	—			(2.7		)
Principal payments under capital lease obligations	—			—			(0.2		)	—			—			(0.2		)
Proceeds from (repayment of) short-term borrowings	—			—			(10.2		)	—			—			(10.2		)
Intra-entity activity, net	19.0			(0.1		)	(386.6		)	367.7			—			—
Net cash (used in) provided by financing activities	(448.1		)	(0.1		)	(477.1		)	(533.0		)	1,020.1			(438.2		)
Cash and cash equivalents at beginning of period	1.9			0.1			102.0			33.7			—			137.7
Increase (decrease) in cash and cash equivalents	(0.2		)	—			(30.2		)	(7.9		)	—			(38.3		)
Effect of exchange rate changes on cash and cash equivalents	—			—			(1.5		)	0.8			—			(0.7		)
Cash and cash equivalents at end of period	$	1.7		$	0.1		$	70.3		$	26.6		$	—		$	98.7

127

Condensed Consolidating Statement of Cash Flows

For the 52 week period endedJanuary 30, 2016

(in millions)	Signet Jewelers Limited			Signet UK Finance plc			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	98.6		$	(0.1	)	$	325.7		$	215.0		$	(195.9	)	$	443.3
Investing activities
Purchase of property, plant and equipment	—			—			(225.9		)	(0.6		)	—			(226.5		)
Investment in subsidiaries	—			—			(0.3		)	—			0.3			—
Purchase of available-for-sale securities	—			—			—			(6.2		)	—			(6.2		)
Proceeds from available-for-sale securities	—			—			—			4.0			—			4.0
Net cash (used in) provided by investing activities	—			—			(226.2		)	(2.8		)	0.3			(228.7		)
Financing activities
Dividends paid on common shares	(67.1		)	—			—			—			—			(67.1		)
Intra-entity dividends paid	—			—			(149.3		)	(46.6		)	195.9			—
Repurchase of common shares	(130.0		)	—			—			—			—			(130.0		)
Proceeds from issuance of common shares	5.0			0.3			—			—			(0.3		)	5.0
Net settlement of equity based awards	(8.3		)	—			—			—			—			(8.3		)
Excess tax benefit from exercise of share awards	—			—			6.9			—			—			6.9
Repayments of term loan	—			—			(25.0		)	—			—			(25.0		)
Proceeds from securitization facility	—			—			—			2,303.9			—			2,303.9
Repayment of securitization facility	—			—			—			(2,303.9		)	—			(2,303.9		)
Proceeds from revolving credit facility	—			—			316.0			—			—			316.0
Repayments of revolving credit facility	—			—			(316.0		)	—			—			(316.0		)
Principal payments under capital lease obligations	—			—			(1.0		)	—			—			(1.0		)
Proceeds from (repayment of) short-term borrowings	—			—			(47.1		)	—			—			(47.1		)
Intra-entity activity, net	101.6			(0.2		)	54.9			(156.3		)	—			—
Net cash (used in) provided by financing activities	(98.8		)	0.1			(160.6		)	(202.9		)	195.6			(266.6		)
Cash and cash equivalents at beginning of period	2.1			0.1			166.5			24.9			—			193.6
Increase (decrease) in cash and cash equivalents	(0.2		)	—			(61.1		)	9.3			—			(52.0		)
Effect of exchange rate changes on cash and cash equivalents	—			—			(3.4		)	(0.5		)	—			(3.9		)
Cash and cash equivalents at end of period	$	1.9		$	0.1		$	102.0		$	33.7		$	—		$	137.7

128

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.

	Fiscal 2018 Quarters ended
(in millions, except per share amounts)	April 29, 2017		July 29, 2017		October 28, 2017			February 3, 2018
Sales	$	1,403.4	$	1,399.6	$	1,156.9		$	2,293.1
Gross margin	491.2		457.9		321.1			919.8
Net income (loss) attributable to common shareholders	70.3		85.2		(12.1		)	343.0
Earnings (loss) per common share:
Basic	$	1.03	$	1.34	$	(0.20	)	$	5.70
Diluted	$	1.03	$	1.33	$	(0.20	)	$	5.24

	Fiscal 2017 Quarters ended
(in millions, except per share amounts)	April 30, 2016		July 30, 2016		October 29, 2016		January 28, 2017
Sales	$	1,578.9	$	1,373.4	$	1,186.2	$	2,269.9
Gross margin	600.4		464.9		350.0		945.5
Net income (loss) attributable to common shareholders	146.8		81.9		14.8		287.8
Earnings (loss) per common share:
Basic	$	1.87	$	1.06	$	0.20	$	4.17
Diluted	$	1.87	$	1.06	$	0.20	$	3.92

129

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

ITEM 9A. CONTROLS AND PROCEDURES

The directors review the effectiveness of Signet’s system of internal controls in the financial, operational, compliance and risk management areas.

Signet’s disclosure controls and procedures are designed to help ensure that processes and procedures for information management are in place at all levels of the business. The disclosure controls and procedures aim to provide reasonable assurance that any information disclosed by Signet in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. The procedures are also designed to ensure that information is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions to be made regarding required disclosure. Signet’s Disclosure Control Committee, which has a written charter, consists of the Chief Financial Officer, Chief Governance Officer and Corporate Secretary, Chief Legal, Risk and Corporate Affairs Officer, Senior Vice President - Financial Controller, Senior Vice President - Internal Audit and Enterprise Risk Management, Senior Vice President - Tax and Treasury, Vice President - Investor Relations and Treasurer, who consult with Signet’s external advisers and auditor, as necessary. These procedures are designed to enable Signet to make timely, appropriate and accurate public disclosures. The activities and findings of the Disclosure Control Committee are reported to the Audit Committee.

Based on their evaluation of Signet’s disclosure controls and procedures, as of February 3, 2018 and in accordance with the requirements of Section 302 of the Sarbanes-Oxley Act of 2002, the Chief Executive Officer and Chief Financial Officer have concluded that the disclosure controls and procedures are effective and provide reasonable assurance that information regarding Signet is recorded, processed, summarized and reported and that the information is accumulated and communicated to management to allow timely decisions regarding required disclosure.

Management’s annual report on internal control over financial reporting

Signet’s management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) under the Exchange Act.

All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.

Management conducted an evaluation of internal control over financial reporting based on the framework in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on this evaluation, management determined that Signet’s internal control over financial reporting was effective as of February 3, 2018.

Our independent registered public accountants, KPMG LLP, audited the consolidated financial statements of Signet for Fiscal 2018 and have also audited the effectiveness of internal control over financial reporting as of February 3, 2018. An unqualified opinion has been issued thereon, the details of which are included within this Annual Report on Form 10-K.

Changes in internal control over financial reporting

There were no changes in internal control over financial reporting during the quarter ended February 3, 2018 that have materially affected, or are reasonably likely to materially affect, Signet’s internal control over financial reporting.

ITEM 9B. OTHER INFORMATION

None.

130

PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

Information concerning directors, executive officers and corporate governance may be found under the captions “Election of Directors and Board of Directors and Corporate Governance” in our definitive proxy statement for our 2018 Annual Meeting of Shareholders (the “2018 Proxy Statement”), which will be filed with the SEC within 120 days after the close of our fiscal year. Such information is incorporated herein by reference. The information in the 2018 Proxy Statement set forth under the captions “Section 16(a) Beneficial Ownership Reporting Compliance” and “Report of the Audit Committee” is incorporated herein by reference.

The Company has a policy on business integrity, as well as more detailed guidance and regulations as part of its staff orientation, training and operational procedures. These policies include the Code of Conduct, which is applicable to all Directors, officers and employees as required by NYSE listing rules, and the Code of Ethics for Senior Officers, which applies to the Chairman, CEO, Directors and other senior officers. Copies of these codes are available on request from the Chief Governance Officer & Corporate Secretary and may be downloaded from www.signetjewelers.com/ethics. The Company intends to satisfy the disclosure requirement regarding any amendment to, or a waiver of, a provision of the Code of Ethics for Senior Officers for the Company’s principal executive officer, principal executive officer, principal financial officer, principal accounting officer and controller, or persons performing similar functions, by posting such information on its website.

ITEM 11. EXECUTIVE COMPENSATION

Information concerning executive compensation may be found under the captions “Executive Compensation” and “Director Compensation,” in the 2018 Proxy Statement. Such information is incorporated herein by reference.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The information in the 2018 Proxy Statement set forth under the captions “Shareholders Who Beneficially Own At Least Five Percent of the Common Shares,” “Ownership by Directors, Director Nominees and Executive Officers” and “Equity Compensation Plan Information” is incorporated herein by reference.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

The information in the 2018 Proxy Statement set forth under the captions “Board of Directors and Corporate Governance,” “Board Committees” and “Transactions with Related Persons” is incorporated herein by reference.

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES

The information in the 2018 Proxy Statement set forth under the caption “Appointment of Independent Auditor” is incorporated herein by reference.

131

PART IV

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES

	PAGE
(1) The following consolidated financial statements are included in Item 8:
Consolidated income statements for the fiscal years ended February 3, 2018, January 28, 2017, and January 30, 2016		72
Consolidated statements of comprehensive income for the fiscal years ended February 3, 2018, January 28, 2017, and January 30, 2016		73
Consolidated balance sheets as of February 3, 2018 and January 28, 2017		74
Consolidated statements of cash flows for the fiscal years ended February 3, 2018, January 28, 2017, and January 30, 2016		75
Consolidated statements of shareholders’ equity for the fiscal years ended February 3, 2018, January 28, 2017, and January 30, 2016		77
Notes to the consolidated financial statements		78
(2) The following exhibits are filed as part of this Annual Report on Form 10-K or are incorporated herein by reference.

132

Number	Description of Exhibits
2.1	Agreement and Plan of Merger dated February 19, 2014 by and among Signet Jewelers Limited, Carat Merger Sub, Inc. and Zale Corporation (incorporated by reference to Exhibit 2.1 of the Current Report on Form 8-K filed by Zale Corporation on February 19, 2014).
2.2	Agreement and Plan of Merger, by and among Sterling Jewelers Inc., Signet Jewelers Ltd., Aquarius Sub Inc., R2Net Inc., and the Seller’s Representative, dated August 23, 2017 (incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K filed August 24, 2017).
3.1	Memorandum of Association of Signet Limited and Certificate of Incorporation on Change of Name to Signet Jewelers Limited (incorporated by reference to Exhibit 3.1 to the Company’s Registration Statement on Form 8-A filed September 11, 2008 (“Form 8-A”)).
3.2	Amended and Restated Bye-laws of Signet Jewelers Limited (incorporated by reference to Exhibit 3.1 to the Company’s Quarterly Report on Form 10-Q filed September 10, 2014).
4.1	Form of common share certificate of Signet Jewelers Limited (incorporated by reference to Exhibit 4.1 to Form 8-A).
4.2	Master Indenture dated as of November 2, 2001 among Sterling Jewelers Receivables Master Note Trust, as issuer, Bankers Trust Company, as Trustee, and Sterling Jewelers Inc., as Servicer (incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K filed May 21, 2014).
4.3	Second Supplemental Indenture, dated as of June 30, 2014, among Signet UK Finance plc, the guarantors party thereto, and Deutsche Bank Trust Company Americas, as indenture trustee (incorporated by reference to Exhibit 4.1 to the Company’s Quarterly Report on Form 10-Q filed September 10, 2014).
4.4	Administration Agreement dated as of November 2, 2001 between Sterling Jewelers Receivables Master Note Trust, as issuer, and Sterling Jewelers Inc., as administrator (incorporated by reference to Exhibit 4.5 to the Company’s Current Report on Form 8-K filed May 21, 2014).
4.5	Certificate of Designation of Series A Convertible Preference Shares, Par Value $0.01 Per Share, of Signet Jewelers Limited (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed November 3, 2016).
10.1	Depositary Agreement dated as of September 3, 2008 between Signet Jewelers Limited and Capita IRG Trustees Limited (incorporated by reference to Exhibit 10.4 to the Company’s Annual Report on Form 10-K filed March 30, 2010).
10.2	Second Amended and Restated Credit Agreement, dated as of July 14, 2016, by and among Signet Jewelers Limited, as Parent, Signet Group Limited, Signet Group Treasury Services Inc. and Sterling Jewelers Inc. as borrowers, the additional borrowers from time to time party thereto, the financial institutions from time to time party thereto as lenders, JPMorgan Chase Bank, N.A., as administrative agent and the other parties party thereto (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed July 15, 2016).
10.3	Sale and Purchase Agreement, by and among Sterling Jewelers Inc. and Comenity Bank, dated May 25, 2017 (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed May 25, 2017).
10.4	Credit Card Program Agreement, by and among Sterling Jewelers Inc. and Comenity Bank, dated May 25, 2017 (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed May 25, 2017).
10.5	Receivables Sale and Purchase Agreement, by and among Sterling Jewelers Inc., Zale Delaware, Inc., Signet Jewelers Limited and CVI SGP Acquisition Trust, dated March 12, 2018 (incorporated by reference to Exhibit 10.1 of the Current Report on Form 8-K filed March 14, 2018).
10.6	Termination Agreement, dated October 20, 2017, among Sterling Jewelers Receivables Master Note Trust, Sterling Jewelers Inc., Sterling Jewelers Receivable Corp., Deutsche Bank Trust Company Americas, JPMorgan Chase Bank, N.A., Chariot Funding LLC, Jupiter Securitization Company LLC and the noteholders related thereto (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed October 23, 2017).
10.7†	Termination Protection Agreement between Sterling Jewelers Inc. and Mark S. Light (incorporated by reference to Exhibit 10.1 to the Company’s Current Form on Form 8-K filed October 20, 2015).

133

Number	Description of Exhibits
10.8†	Termination Protection Agreement between Sterling Jewelers Inc. and Michele Santana (incorporated by reference to Exhibit 10.2 to the Company’s Current Form on Form 8-K filed October 20, 2015).
10.9†	Termination Protection Agreement between Sterling Jewelers Inc. and Steven J. Becker (incorporated by reference to Exhibit 10.3 to the Company’s Current Form on Form 8-K filed October 20, 2015).
10.10†	Termination Protection Agreement between Sterling Jewelers Inc. and Edward Hrabak (incorporated by reference to Exhibit 10.4 to the Company’s Current Form on Form 8-K filed October 20, 2015).
10.11†	Termination Protection Agreement between Sterling Jewelers Inc. and George Murray (incorporated by reference to Exhibit 10.5 to the Company’s Current Form on Form 8-K filed October 20, 2015).
10.12†	Separation Agreement dated January 29, 2017 between Sterling Jewelers Inc. and Ed Hrabak (incorporated by reference to Exhibit 10.8 to the Company’s Annual Report on Form 10-K filed March 16, 2017).
10.13†	Separation and Release Agreement, dated July 27, 2017 between Signet Jewelers Ltd. and Bryan Morgan (incorporated by reference to Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q filed August 29, 2017).
10.14†	Separation and Release Agreement, dated July 15, 2017 between Signet Jewelers Ltd. and Mark Light (incorporated by reference to Exhibit 10.5 to the Company’s Current Report on Form 8-K filed July 17, 2017).
10.15†	Termination Protection Agreement dated September 26, 2017 between Sterling Jewelers Inc. and Virginia Drosos (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q filed December 1, 2017).
10.16†	Rules of the Signet Group 2005 Long-Term Incentive Plan (incorporated by reference to Exhibit 4.16 to the Company’s Annual Report on Form 20-F filed May 4, 2006).
10.17†	Signet Jewelers Limited Rules of the Sharesave Scheme (incorporated by reference to Exhibit 99.3 to the Company’s Registration Statement on Form S-8 filed September 11, 2008 (File No. 333-153435)).
10.18†	Signet Jewelers Limited Rules of the Irish Sharesave Scheme (incorporated by reference to Exhibit 99.4 to the Company’s Registration Statement on Form S-8 filed September 11, 2008 (File No. 333-153435)).
10.19†	Signet Jewelers Limited US Stock Option Plan 2008 (incorporated by reference to Exhibit 99.5 to the Company’s Registration Statement on Form S-8 filed September 11, 2008 (File No. 333-153435)).
10.20†	Signet Jewelers Limited International Share Option Plan 2008 (incorporated by reference to Exhibit 99.6 to the Company’s Registration Statement on Form S-8 filed September 11, 2008 (File No. 333-153435)).
10.21†	Signet Jewelers Limited UK Approved Share Option Plan 2008 (incorporated by reference to Exhibit 99.7 to the Company’s Registration Statement on Form S-8 filed September 11, 2008 (File No. 333-153435)).
10.22†	Rules of the Signet Group plc Sharesave Scheme (incorporated by reference to Exhibit 99.8 to the Company’s Registration Statement on Form S-8 filed September 11, 2008 (File No. 333-153435)).
10.23†	Rules of the Signet Group plc Sharesave Scheme (The Republic of Ireland) (incorporated by reference to Exhibit 99.9 to the Company’s Registration Statement on Form S-8 filed September 11, 2008 (File No. 333-153435)).
10.24†	Signet Group plc International Share Option Plan 2003 (incorporated by reference to Exhibit 99.10 to the Company’s Registration Statement on Form S-8 filed September 11, 2008 (File No. 333-153435)).
10.25†	Signet Group plc UK Inland Revenue Approved Share Option Plan 2003 (incorporated by reference to Exhibit 99.11 to the Company’s Registration Statement on Form S-8 filed September 11, 2008 (File No. 333-153435)).
10.26†	Signet Group plc Employee Stock Savings Plan (incorporated by reference to Exhibit 99.1 to the Company’s Post-Effective Amendment No. 1 to Registration Statement on Form S-8 filed September 11, 2008 (File No. 333-9634)).
10.27†	Signet Group plc US Share Option Plan 2003 (incorporated by reference to Exhibit 99.2 to the Company’s Post-Effective Amendment No. 1 to Registration Statement on Form S-8 filed September 11, 2008 (File No. 333-134192)).
10.28†	Signet Group plc 2000 Long-Term Incentive Plan (incorporated by reference to Exhibit 99.1 to the Company’s Post-Effective Amendment No. 1 to Registration Statement on Form S-8 filed September 11, 2008 (File No. 333-12304)).

134

Number	Description of Exhibits
10.29†	Signet Group plc 1993 Executive Share Option Scheme (incorporated by reference to Exhibit 99.1 to the Company’s Post-Effective Amendment No. 1 to Registration Statement on Form S-8 filed September 11, 2008 (File No. 333-8964)).
10.30†	Signet Jewelers Limited Omnibus Incentive Plan (incorporated by references to Exhibit 99.1 to the Company’s Registration Statement on Form S-8 filed June 15, 2009 (File No. 333-159987)).
10.31†	Form of Signet Jewelers Limited Omnibus Incentive Plan Performance Based Restricted Stock Unit Award Notice and Agreement (incorporated by reference to Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q filed May 24, 2012).
10.32†	Form of Signet Jewelers Limited Omnibus Incentive Plan Time-Based Restricted Stock Award Notice and Agreement (incorporated by reference to Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q filed May 24, 2012).
10.33†	Form of Letter of Appointment of Independent Directors (incorporated by reference to Exhibit 10.28 to the Company’s Annual Report on Form 10-K filed March 22, 2012).
10.34†	Form of Deed of Indemnity for Directors (incorporated by reference to Exhibit 10.32 to the Company’s Annual Report on Form 10-K filed March 30, 2010).
10.35	Investment Agreement, dated as of August 24, 2016, by and among Signet Jewelers Limited, Green Equity Investors VI, L.P. and Green Equity Investors Side VI, L.P. (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed August 25, 2016).
10.36	Shareholders’ Agreement by and among Signet Jewelers Limited, Green Equity Investors VI, L.P., Green Equity Investors Side VI, L.P., LGP Associates VI-A LLC and LGP Associates VI-B LLC, dated as of October 5, 2016 (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed October 6, 2016).
10.37	Registration Rights Agreement, dated as of October 5, 2016, by and among Signet Jewelers Limited, Green Equity Investors VI, LP, Green Equity Investors Side VI, L.P., LGP Associates VI-A LLC and LGP Associates VI-B LLC (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed October 6, 2016).
10.38	Accelerated Share Repurchase Master Confirmation Agreement, dated as of October 5, 2016, by and among Signet Jewelers Limited and JPMorgan Chase Bank, National Association (incorporated by reference to Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q filed November 29, 2016).
10.39	Accelerated Share Repurchase Supplemental Confirmation Agreement, dated as of October 5, 2016, by and among Signet Jewelers Limited and JPMorgan Chase Bank, National Association (incorporated by reference to Exhibit 10.5 to the Company’s Quarterly Report on Form 10-Q filed November 29, 2016).
10.40*	Amendment to Confidential Separation and Release Agreement, dated March 1, 2018 between Sterling Jewelers Inc. and Mark Light.
10.41*	Termination Protection Agreement, dated January 29, 2017 between Sterling Jewelers Inc. and Sebastian Hobbs.
10.42*	Personal Employment Agreement, dated August 23, 2017 between R2Net Israel Ltd. and Oded Edelman.
12.1*	Ratio of earnings to fixed charges.
21.1*	Subsidiaries of Signet Jewelers Limited.
23.1*	Consent of independent registered public accounting firm.
31.1*	Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*	Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted by Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*	Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted by Section 906 of the Sarbanes-Oxley Act of 2002.

135

Number	Description of Exhibits
101.INS*	XBRL Instance Document.
101.SCH*	XBRL Taxonomy Extension Schema Document.
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF*	XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document.

*	Filed herewith.
†	Management contract or compensatory plan or arrangement.

ITEM 16. FORM 10-K SUMMARY

None.

136

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		Signet Jewelers Limited
Date:	April 2, 2018	By:	/s/ Michele L. Santana
		Name:	Michele L. Santana
		Title:	Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)

137

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities indicated, on the date set forth below.

Date		Signature	Title
April 2, 2018	By:	/s/ Virginia C. Drosos	Chief Executive Officer (Principal Executive Officer and Director)
		Virginia C. Drosos
April 2, 2018	By:	/s/ Michele L. Santana	Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)
		Michele L. Santana
April 2, 2018	By:	/s/ H. Todd Stitzer	Chairman of the Board
		H. Todd Stitzer
April 2, 2018	By:	/s/ Marianne Miller Parrs	Director
		Marianne Miller Parrs
April 2, 2018	By:	/s/ Thomas G. Plaskett	Director
		Thomas G. Plaskett
April 2, 2018	By:	/s/ Russell Walls	Director
		Russell Walls
April 2, 2018	By:	/s/ Helen E. McCluskey	Director
		Helen E. McCluskey
April 2, 2018	By:	/s/ Eugenia M. Ulasewicz	Director
		Eugenia M. Ulasewicz
April 2, 2018	By:	/s/ R. Mark Graf	Director
		R. Mark Graf
April 2, 2018	By:	/s/ Jonathan Sokoloff	Director
		Jonathan Sokoloff
April 2, 2018	By:	/s/ Brian Tilzer	Director
		Brian Tilzer
April 2, 2018	By:		Director
		Sharon L. McCollam
April 2, 2018	By:		Director
		Nancy A. Reardon

138

EX-10.41

Exhibit 10.40

AMENDMENT TO CONFIDENTIAL SEPARATION AND RELEASE AGREEMENT

This AMENDMENT TO THE CONFIDENTIAL SEPARATION AND RELEASE AGREEMENT (hereinafter this “Amendment”) is made and entered into by and among Sterling Jewelers Inc., a Delaware corporation (including its successors and assigns, the “Company”), and Mark S. Light (the “Employee”) (collectively with the Company, the “Parties”).

WHEREAS the Company and Employee entered into the Confidential Separation and Release Agreement on July 15, 2017 (“Separation Agreement”).

WHEREAS the Company desires to grant the Employee a limited waiver of the Employee’s non-competition restrictive covenant in Section 6 of the Separation Agreement to permit the Employee to join the board of directors of a private company, Bedrock Manufacturing Company, LLC (“Bedrock”), and to enter into a consulting agreement with Bedrock beginning February 1, 2018.

NOW, THEREFORE, in consideration of the promises and mutual agreements contained herein and in the Separation Agreement, the Company and the Employee agree to amend the Separation Agreement as follows:

1. The Parties agree that except as expressly stated in this Amendment, the terms and provisions of the Separation Agreement remain the same, and the Separation Agreement remains in full force and effect.

2. The Parties agree that this Amendment, along with the Separation Agreement, remains in full force and effect even if the Employee ceases association with Bedrock at any time.

3. The Parties agree that Section 2(b): Retirement Payments of the Separation Agreement remains in full force and effect, except that:

a. Section 2(b)(i) is rescinded in its entirety and replaced with the following: “(i) from July 31, 2017 through January 31, 2018, continued payment of the Employee’s annual base salary in effect on the Retirement Date, and from February 1, 2018 through July 31, 2018, continued payment of fifty percent (50%) of the Employee’s annual base salary in effect on the Retirement Date, paid in accordance with the Company’s standard payroll practices for executive officers.”

b. Section 2(b)(v) is rescinded in its entirety and replaced with the following: “(v) a lump sum payment equal to $487,500 payable within ten (10) days following the second anniversary of the Retirement Date, and a lump sum payment equal to $487,500 payable within ten (10) days following the third anniversary of the Retirement Date.”

4. The Parties agree that Section 6: Restrictive Covenants of the Separation Agreement remains in full force and effect, except that Section 6(c) is rescinded in its entirety and replaced with the following:

a. “(c) The Employee agrees that Employee shall not, directly or indirectly, without the prior written consent of the Company: (i) during Employee’s employment with the Company or any of its subsidiaries or affiliates and for a period of three years commencing upon the Retirement Date (such period, the “Restrictive Covenant Period”), solicit, entice, persuade or induce any employee, consultant, agent or independent contractor of the Company or of any of the subsidiaries or affiliates of the Company to terminate his or her employment or engagement with the Company or such subsidiary or affiliate, to become employed by any person, firm or corporation other than the Company or such subsidiary or affiliate or approach any such employee, consultant, agent or independent contractor for any of the foregoing purposes; or (ii) with the exception of serving as a member of the board of directors and a consultant to Bedrock and its affiliates, during the Restrictive Covenant Period, directly or indirectly own, manage, control, invest or participate in any way in, consult with or render services to or for any person or entity (other than for the Company or any of the subsidiaries or affiliates of the Company) which is materially engaged in the Business (“materially” meaning deriving more than 25% of its revenue from the sale of jewelry and watches per year as of the applicable date); provided that the Employee shall be entitled to own up to 1% of any class of outstanding securities of any company whose common stock is listed on a national securities exchange or included for trading on the NASDAQ Stock Market.”

[signature page to follow]

Exhibit 10.40

IN WITNESS WHEREOF, the Parties have executed this Amendment on the last date written below:

STERLING JEWELERS INC.

By: /s/ H.T. Stitzer        

Name: H.T. Stitzer

Title:    Chairman

Date:    / 3-1-18

EMPLOYEE

By: /s/ Mark S. Light        

Name: Mark S. Light

Date:    / 3-1-18

EX-10.42

Exhibit 10.41

TERMINATION PROTECTION AGREEMENT

THIS TERMINATION PROTECTION AGREEMENT (as hereinafter amended from time to time, this “Agreement”) is made and entered into by and among Sterling Jewelers Inc., a Delaware corporation (the “Company”) and Sebastian Hobbs (the “Executive”), effective as of January 29, 2017 (the “Effective Date”).

W I T N E S S E T H

WHEREAS, the Company and its affiliates are engaged in the business of operating chains of retail jewelry stores in the United States, the United Kingdom and Canada;

WHEREAS, the Executive and Signet Trading Limited are party to that certain service agreement dated as of December 20, 2010, as modified by that certain Internal Memorandum dated as of July 31, 2013 (collectively, the “Prior Agreement”); and

WHEREAS, the Company desires to employ the Executive, and the Executive desires to be employed, as President and Chief Customer Officer of Signet Jewelers Limited, a Bermuda corporation (“Signet,” and, together with its subsidiaries, the “Signet Group”, which for purposes of this Agreement is an affiliate of the Company), effective as of the Effective Date, subject to the terms and provisions of this Agreement.

NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which is mutually acknowledged, the Company and the Executive (individually a “Party” and together the “Parties”), intending to be legally bound, agree as follows:

Agreement

1.Definitions

(i)“Annual Bonus” means an annual cash bonus award in accordance with the annual short-term incentive plan then in effect for executive officers of Signet, as approved by the Compensation Committee or its designee.

(ii)“Board” means the Board of Directors of Signet.

(iii)“Business” shall mean the operation of a retail jewelry business that sells to the public jewelry, watches and associated services including through e-commerce.

(iv)“Cause” means (A) fraud, embezzlement, gross insubordination or any act of moral turpitude or misconduct, in each case, on the part of the Executive; (B) conviction of or the entry of a plea of nolocontendere by the Executive for any felony; or (C) (x) a material breach by the Executive of Executive’s duties, responsibilities or obligations under this Agreement or the attached Schedule 1, or (y) the willful failure or refusal by the Executive to perform and discharge a specific lawful directive issued to Executive by the Board within a reasonable period of time, not to be less than five (5) business days, following written notice thereof to the Executive by the Company or the Board.

(v)“Change of Control” means the occurrence of any of the following events:

(i) any consolidation, amalgamation, or merger of Signet with or into any other Person, or any other corporate reorganization, business combination, transaction or transfer of securities of Signet by its stockholders, or a series of transactions (including the acquisitions of capital stock of Signet), whether or not Signet is a party thereto, in which the stockholders of Signet immediately prior to such consolidation, merger, reorganization, business combination or transaction, collectively have beneficial ownership (as defined in Rule 13d-3 of the General Rules and Regulations under the Securities Exchange Act of 1934, as amended), directly or indirectly, of capital stock representing directly, or indirectly through one or more entities, less than fifty (50%) of the equity (measured by economic value or voting power (by contract, share ownership or otherwise) of Signet or other surviving entity immediately after such consolidation, merger, reorganization, business combination or transaction;

(ii) the sale or disposition, in one transaction or a series of related transactions, of all or substantially all of the assets of Signet to any Person;

(iii) during any period of twelve consecutive months, individuals who as of the beginning of such period constituted the entire Board (together with any new directors whose election by such Board or nomination for election by Signet’s shareholders was approved by a vote of at least two-thirds of the directors of Signet, then still in office, who were directors at the beginning of the period or whose election or nomination for election was previously so approved) cease for any reason to constitute a majority thereof; of

Exhibit 10.41

(iv) approval by the shareholders of Signet of a complete liquidation or dissolution of Signet.

(vi)“Compensation Committee” means the compensation committee of the Board.

(vii)“Disability” means any physical or mental disability during the term of the Executive’s Employment that renders the Executive incapable of performing the services required of the Executive for any period or periods aggregating six months during any twelve- month period. For purposes of the foregoing, the Executive’s physical or mental disability shall be determined in accordance with any disability plan of or applicable to the Company that is then in effect.

(viii)“Good Reason” means within one (1) year following a Change of Control and without the Executive’s prior written consent: (A) any material reduction in Executive’s target or maximum potential annual compensation opportunities as set forth on the attached Schedule 1; (B) a material diminution in Executive’s authority, duties or responsibilities as set forth on Schedule 1; (C) any requirement that the Executive relocate Executive’s principal place of employment by more than fifty miles from Akron, Ohio and from Executive’s principal residence; or (D) a material breach by the Company of its payment obligations to the Executive as set forth on Schedule 1, which breach remains uncured for thirty days following written notice thereof provided by the Executive to the Company; provided that, no event described in clauses (A) - (D) shall constitute Good Reason unless (i) Executive has given the Company written notice of the termination, setting forth the conduct of the Company that is alleged to constitute Good Reason, within ninety 90 days following the first occurrence of such event, and (ii) Executive has provided the Company at least thirty (30) days following the date on which such notice is provided to cure such conduct and the Company has failed to do so.

(ix)“Long Term Incentive Plan” means the long-term incentive plan then in effect, as approved by the Compensation Committee or its designee.

(x)“Person” shall have the meaning ascribed to such term in Section 3(a)(9) of the Securities Exchange Act of 1934, as amended and used in Sections 13(d) and 14(d) thereof, including a “group” as defined in Section 13(d) thereof.

2.Termination. The Executive’s employment with the Company is “at-will” and shall continue until terminated either by the Company at any time by notifying the Executive in writing or by the Executive at any time upon at least three hundred and sixty (360) days’ prior written notice to the Company. The provisions of this Agreement exclusively shall govern the Executive’s rights upon termination of employment with the Company and its affiliates.

(a)Termination By the Company For Cause; Resignation by the Executive. If the Executive’s employment with the Company is terminated by the Company for Cause (as defined below) or if the Executive resigns for any reason or no reason, the Executive shall be entitled to receive solely the following: (i) base salary and accrued and unused vacation through the date of termination in accordance with the Company’s normal payroll practices; (ii) any Annual Bonus or Long Term Incentive Plan payment that has been earned by the Executive for a completed fiscal year (or with respect to a Long Term Incentive Plan payment, a completed performance cycle) ending prior to the effective date of the Executive’s date of termination but which remains unpaid as of such date payable in accordance with the applicable Plan; and (iii) any vested benefits to which the Executive is entitled under the employee benefit plans of the Company, payable pursuant to the terms and conditions of such benefit plans (the amounts described in clauses (i), (ii), and (iii) being referred to as the “Accrued Rights”).

(b)Termination By the Company Without Cause or Resignation by the Executive for Good Reason. If the Executive’s employment hereunder is terminated by the Company without Cause or if the Executive resigns for Good Reason, the Executive shall be entitled to receive solely the following in addition to the Accrued Rights, subject to Section 2(g) and the Executive’s continued compliance with the provisions of Sections 3 and 4:

(i)continued payment of the Executive’s Base Salary in effect on the last date of the Executive’s employment for twelve (12) months following such last date of employment, in accordance with the Company’s standard payroll practices for executive officers;

(ii)a lump sum amount equal to the Annual Bonus the Executive would otherwise have received for the fiscal year in which the Executive’s termination of employment occurred, based on actual performance, payable in a lump sum during the period commencing on the 15th of April and ending on the 31st of May following the end of the applicable fiscal year of Signet; and

(iii)in respect of each then-ongoing performance cycle under the Long Term Incentive Plan as of the date of termination, (1) with respect to awards that vest in whole or in part based on performance, at the end of each completed performance cycle for each such award, vesting shall be calculated by multiplying (A) the total number of awards that would have vested based on actual performance during the full performance cycle and (B) the quotient obtained from dividing the number of calendar days worked during the applicable performance cycle through the date of termination by

Exhibit 10.41

the number of calendar days in such performance cycle, payable upon the conclusion of the applicable performance cycle in accordance with the Long Term Incentive Plan (but no later than the “short-term deferral” period under Section 409A (defined below)), and (2) with respect to awards that vest solely based on the provision of services, vesting, as of the date of termination of employment, shall be calculated by multiplying (A) the total number of awards that would have vested if the Executive had remained employed during the full performance cycle and (B) the quotient obtained from dividing the number of calendar days worked during the applicable performance cycle through the date of termination by the number of calendar days in such performance cycle, payable in accordance with the Long Term Incentive Plan; and

(iv)if Executive timely elects coverage under the Consolidated Omnibus Budget Reconciliation Act (“COBRA”), a cash payment equal to the employer contribution to the premium payment for actively employed senior executives with the same level of coverage, payable monthly in accordance with the Company’s standard payroll practices for twelve (12) months or until such earlier termination of COBRA coverage, with the first payment within seventy-two (72) days of the date of Executive’s termination of employment as determined solely by the Company;

For the avoidance of doubt, all payments under this Section 2(b) shall cease upon the Executive’s breach of the provisions of Sections 3 or 4 of this Agreement.

(c)Automatic Termination Upon the Executive’s Death. In the event of the Executive’s death during the term of the Executive’s employment, the Executive’s employment and this Agreement shall automatically terminate and, in addition to the Accrued Rights and subject to Section 2(g), the Company shall pay to Executive’s estate Executive’s Base Salary in effect on the last date of the Executive’s employment for six (6) months following such last date of employment, in accordance with the Company’s standard payroll practices for executive officers and a lump sum amount equal to the pro-rata portion of the Annual Bonus (if any) for which the Executive would have been eligible had the Executive remained employed with the Company through the end of the fiscal year in which employment terminated, based on actual performance and calculated by multiplying such amount by the quotient obtained by dividing the number of calendar days worked during the applicable fiscal year in which termination occurred by the number of calendar days in such fiscal year (which amount shall be paid during the period commencing on the 15th of April and ending on the 31st of May following the end of the applicable fiscal year of Signet). In addition, in respect of each then-ongoing performance cycle under the Long Term Incentive Plan as of the date of termination, (1) with respect to awards that vest in whole or in part based on performance, vesting, as of the date of death, shall be calculated by multiplying (A) the number of awards that would have vested upon achievement of target performance by (B) the quotient obtained from dividing the number of calendar days worked during the applicable performance cycle through the date of Executive’s death by the number of calendar days in such performance cycle, payable in accordance with the Long Term Incentive Plan (but no later than the “short-term deferral” period under Section 409A (defined below)) and (2) with respect to awards that vest solely based on the provision of services, vesting, as of the date of death, shall be calculated by multiplying (A) the total number of awards that would have vested if the Executive remained employed during the full performance cycle and (B) the quotient obtained from dividing the number of calendar days worked during the applicable performance cycle through the date of Executive’s death by the number of calendar days in such performance cycle, payable in accordance with the Long Term Incentive Plan.

(d)Termination due to Disability. In the event of the Executive’s Disability during the term of the Executive’s employment, the Company shall have the right, upon written notice to the Executive, to terminate the Executive’s employment hereunder, effective upon the giving of such notice (or such later date as shall be specified in such notice). Upon such termination, in addition to the Accrued Rights, subject to Section 2(g) and the Executive’s continued compliance with the provisions of Sections 3 and 4, the Company shall have no further obligations hereunder beyond payment to the Executive of the pro-rata portion of the Annual Bonus (if any) for which the Executive would have been eligible had the Executive remained employed with the Company through the end of the fiscal year in which employment terminated, based on actual performance and calculated by multiplying such Annual Bonus by the quotient obtained by dividing the number of calendar days worked during the applicable fiscal year in which termination occurred by the number of calendar days in such fiscal year (which amount shall be paid during the period commencing on the 15th of April and ending on the 31st of May following the end of the applicable fiscal year of Signet). Executive’s Long Term Incentive Plan awards shall be paid in accordance with the Long Term Incentive Plan and applicable award agreements. For the avoidance of doubt, all payments under this Section 2(d) shall cease upon the Executive’s breach of the provisions of Sections 3 or 4 of this Agreement.

(e)Notice of Termination. Any purported termination of employment by the Company or by the Executive (other than due to the Executive’s death) shall be communicated by written Notice of Termination to the other Party hereto in accordance with Section 9(f).

(f)Board/Committee Resignation. Upon termination of the Executive’s employment for any reason, the Executive agrees to resign at the direction of the Board or shall be deemed to have resigned, as of the date of such termination and to the extent applicable, from the Board (and any committees thereof) and the Board of Directors (and any committees thereof) of any of the Company’s subsidiaries or affiliates.

Exhibit 10.41

(g)Waiver and Release; Timing of Payments. Notwithstanding anything herein to the contrary, as a condition precedent to receiving any payments under this Section 2 (other than those amounts already accrued prior to the date of termination, including the Accrued Rights), Executive (or the Executive’s estate, as applicable) shall have executed, within twenty-one days, or if required for an effective release, forty-five days, following the Executive’s termination of employment, a waiver and release in substantially the form attached hereto as Exhibit A (the “Release”), which Release may be updated by the Company from time to time to reflect changes in law, and the seven-day revocation period of such Release shall have expired. Subject to Section 6(b) and the execution of the Release pursuant to this Section 2(g), all payments under this Section 2 shall be payable as described above; provided, that any payments due prior to the sixtieth day after the Executive’s termination of employment shall be made on such sixtieth day.

3.Confidentiality; Ownership of Developments.

(a)During the term of the Executive’s employment with the Company or any of its subsidiaries or affiliates and for all time thereafter, the Executive shall keep secret and retain in strictest confidence and not divulge, disclose, discuss, copy or otherwise use or suffer to be used in any manner, except in connection with the Business of the Company and of any of the subsidiaries or affiliates of the Company, any trade secrets, confidential or proprietary information and documents or materials owned, developed or possessed by or for the Company or any of the subsidiaries or affiliates of the Company pertaining to the Business of the Company or any of the subsidiaries or affiliates of the Company; provided that such information referred to in this Section 3(a) shall not include information that is or has become generally known to the public or the jewelry trade without violation of this Section 3.

(b)The Executive acknowledges that all developments, including, without limitation, inventions (patentable or otherwise), discoveries, improvements, patents, trade secrets, designs, reports, computer software, flow charts and diagrams, data, documentation, writings and applications thereof (collectively, “Works”) relating to the Business or planned business of the Company or any of the subsidiaries or affiliates of the Company that, alone or jointly with others, the Executive may create, make, develop or acquire during the term of Executive’s employment with the Company or any of its subsidiaries or affiliates (collectively, the “Developments”) are works made for hire and shall remain the sole and exclusive property of the Company and its subsidiaries and affiliates and the Executive hereby assigns to the Company all of Executive’s right, title and interest in and to all such Developments and Executive shall take any action reasonably necessary to achieve the foregoing result. Notwithstanding any provision of this Agreement to the contrary, “Developments” shall not include any Works that do not relate to the Business or planned business of the Company or any of the subsidiaries or affiliates of the Company.

(c)The Executive is hereby notified, in accordance with the Defend Trade Secrets Act of 2016, 18 U.S.C. § 1833(b), that: (i) an individual shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made in confidence to a federal, state, or local government official, or to an attorney, solely for the purpose of reporting or investigating a suspected violation of law; (ii) an individual shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal; and (iii) an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual files any document containing the trade secret under seal and does not disclose the trade secret except pursuant to court order.  Notwithstanding anything herein to the contrary, nothing in this Agreement shall: (i) prohibit the Executive from making reports of possible violations of federal law or regulation to any governmental agency or entity in accordance with the provisions of and rules promulgated under Section 21F of the Securities Exchange Act of 1934 or Section 806 of the Sarbanes-Oxley Act of 2002, or of any other whistleblower protection provisions of state or federal law or regulation; or (ii) require notification or prior approval by the Company of any reporting described in clause (i).    

(d)The Executive further understands that this Agreement does not limit the Executive’s ability to communicate with the Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, the Securities and Exchange Commission or any other federal, state or local governmental agency or commission (“Government Agencies”) or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including providing documents or other information, without notice to the Company.  This Agreement also does not limit the Executive’s right to receive an award for information provided to any Government Agency.

4.Covenants Not to Solicit and Not to Compete. The Executive agrees that Executive shall not, directly or indirectly, without the prior written consent of the Company:

(a)during Executive’s employment with the Company or any of its subsidiaries or affiliates and for a period of one year commencing upon termination of the Executive’s employment, solicit, entice, persuade or induce any employee, consultant, agent or independent contractor of the Company or of any of the subsidiaries or affiliates of the

Exhibit 10.41

Company to terminate his or her employment or engagement with the Company or such subsidiary or affiliate, to become employed by any person, firm or corporation other than the Company or such subsidiary or affiliate or approach any such employee, consultant, agent or independent contractor for any of the foregoing purposes; or

(b)during Executive’s employment with the Company or any of its subsidiaries or affiliates and for a period of one year commencing upon termination of the Executive’s employment, directly or indirectly own, manage, control, invest or participate in any way in, consult with or render services to or for any person or entity (other than for the Company or any of the subsidiaries or affiliates of the Company) which is materially engaged in the Business (“materially” meaning deriving more than 25% of its revenue from the sale of jewelry and watches per year as of the applicable date); provided that the Executive shall be entitled to own up to 1% of any class of outstanding securities of any company whose common stock is listed on a national securities exchange or included for trading on the NASDAQ Stock Market.

5.Specific Performance. The Executive acknowledges that the services to be rendered by the Executive are of a special, unique and extraordinary character and, in connection with such services, the Executive will have access to confidential information vital to the Business of the Company and the subsidiaries and affiliates of the Company. By reason of this, the Executive consents and agrees that if the Executive violates any of the provisions of Sections 3 or 4 hereof, the Company and the subsidiaries and affiliates of the Company would sustain irreparable injury and that monetary damages will not provide adequate remedy to the Company and that the Company shall be entitled to have Sections 3 or 4 specifically enforced by any court having equity jurisdiction. Nothing contained herein shall be construed as prohibiting the Company or any of the subsidiaries or affiliates of the Company from pursuing any other remedies available to it for such breach or threatened breach, including, without limitation, the recovery of damages from the Executive or cessation of payments hereunder without requirement for posting a bond.

6.Section 409A.

(a)The intent of the parties is that payments and benefit under this Agreement comply with or be exempt from Internal Revenue Code of 1986, as amended (the “Code”) Section 409A and the regulations and guidance promulgated thereunder (collectively, “Section 409A”) and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith or exempt therefrom, as applicable. If any other payments of money or other benefits due to the Executive hereunder could cause the application of an accelerated or additional tax under Section 409A of the Code, the Company may (i) adopt such amendments to the Agreement, including amendments with retroactive effect, that the Company determines necessary or appropriate to preserve the intended tax treatment of the benefits provided by the Agreement and/or (ii) take such other actions as the Company determines necessary or appropriate to comply with the requirements of Section 409A.

(b)A termination of employment shall not be deemed to have occurred for purposes of this Agreement providing for the payment of any amounts or benefits that are considered nonqualified deferred compensation under Section 409A upon or following a termination of employment, unless such termination is also a “separation from service” within the meaning of Section 409A and the payment thereof prior to a “separation from service” would violate Section 409A. For purposes of any such provision of this Agreement relating to any such payments or benefits, references to a “termination,” “termination of employment” or like terms shall mean “separation from service.” If the Executive is deemed on the date of termination to be a “specified employee” within the meaning of that term under Section 409A(a)(2)(B), then, notwithstanding any other provision herein, with regard to any payment or the provision of any benefit that is considered nonqualified deferred compensation under Section 409A payable on account of a “separation from service,” such payment or benefit shall not be made or provided prior to the date which is the earlier of (A) the expiration of the six-month period measured from the date of such “separation from service” of the Executive, and (B) the date of the Executive’s death (the “Delay Period”). Upon the expiration of the Delay Period, all payments and benefits delayed pursuant to this Section 6(b) (whether they would have otherwise been payable in a single lump sum or in installments in the absence of such delay) shall be paid or reimbursed to the Executive in a lump sum on the first business day following the Delay Period, and any remaining payments and benefits due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein.

(c)(i) All expenses or other reimbursements as provided herein shall be payable in accordance with the Company’s policies in effect from time to time, but in any event any reimbursements that are non-qualified deferred compensation subject to Section 409A of the Code shall be made on or prior to the last day of the taxable year following the taxable year in which such expenses were incurred by the Executive; (ii) no such reimbursement or expenses eligible for reimbursement in any taxable year shall in any way affect the expenses eligible for reimbursement in any other taxable year; and (iii) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchanged for another benefit.

(d)For purposes of Section 409A, the Executive’s right to receive any installment payments pursuant to this Agreement shall be treated as a right to receive a series of separate and distinct payments. Whenever a payment under this Agreement specifies a payment period with reference to a number of days (e.g., “payment shall be made within thirty days

Exhibit 10.41

following the date of termination”), the actual date of payment within the specified period shall be within the sole discretion of the Company.

(e)Nothing contained in this Agreement shall constitute any representation or warranty by the Company regarding compliance with Section 409A. The Company has no obligation to take any action to prevent the assessment of any additional income tax, interest or penalties under Section 409A on any person and the Company, its subsidiaries and affiliates, and each of their employees and representatives shall not have any liability to the Executive with respect thereto.

7.Compliance with Board Policies.

(a)The Executive shall be required to build a holding of shares of Signet common stock (“Shares”) equal to a specified level as set by the Board from time to time (the “Share Ownership Requirement”) pursuant to the terms of any stock ownership policy or guidelines approved by the Board or a committee of the Board and provided to the Executive. The Share Ownership Requirement shall be required for so long as the Executive is an executive officer of the Signet Group.

(b)    The Executive shall be subject to the written policies of the Board applicable to executives, including without limitation any Board policy relating to claw back of compensation, as they exist from time to time during the Executive’s employment with the Company or any of its affiliates.

8.Governing Law; Jurisdiction.

(a)This Agreement shall be subject to, and governed by, the laws of the State of Ohio applicable to contracts made and to be performed therein, without regard to conflict of laws principles thereof.

(b)Any action to enforce any of the provisions of this Agreement shall be brought in a court of the State of Ohio located in Summit County or in a Federal court located in Cleveland, Ohio. The parties consent to the jurisdiction of such courts and to the service of process in any manner provided by Ohio law. Each Party irrevocably waives any objection which it may now or hereafter have to the laying of the venue of any such suit, action, or proceeding brought in such court and any claim that such suit, action, or proceeding brought in such court has been brought in an inconvenient forum and agrees that service of process in accordance with the foregoing sentences shall be deemed in every respect effective and valid personal service of process upon such Party.

EXECUTIVE ACKNOWLEDGES THAT, BY SIGNING THIS AGREEMENT, HE IS WAIVING ANY RIGHT THAT HE MAY HAVE TO A JURY TRIAL RELATED TO THIS AGREEMENT.

9.Miscellaneous.

(a)Entire Agreement/Amendments. This Agreement contains the entire understanding of the parties with respect to the subject matter hereto and supersedes any and all prior agreements (whether written or oral) between the Parties with respect thereto, including, without limitation, the Prior Agreement, the letter to you dated January 9, 2017, signed on behalf of the Company by Steven Becker (the “Letter”) (other than with respect to the relocation benefits provided therein which will remain in full force and effect) and to the extent modified by the terms herein, any Long Term Incentive Plan award outstanding on the date of this Agreement. There are no restrictions, agreements, promises, warranties, covenants or undertakings between the parties with respect to the subject matter herein other than those expressly set forth herein. This Agreement may not be altered, modified, or amended except by written instrument signed by the parties hereto.

(b)No Waiver. The failure of a Party to insist upon strict adherence to any term of this Agreement on any occasion shall not be considered a waiver of such Party’s rights or deprive such Party of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement.

(c)Severability. The provisions of this Agreement are severable and the invalidity, illegality or unenforceability of any one or more provisions shall not affect the validity, legality or enforceability of any other provision. In the event that a court of competent jurisdiction shall determine that any provision of this Agreement or the application thereof is unenforceable in whole or in part because of the duration or scope thereof, the parties hereto agree that said court in making such determination shall have the power to reduce the duration and scope of such provision to the extent necessary to make it enforceable, and that the Agreement in its reduced form shall be valid and enforceable to the full extent permitted by law.

(d)Assignment. This Agreement and all of the Executive’s rights and duties hereunder shall not be assignable or delegable by the Executive. Any purported assignment or delegation by the Executive in violation of the foregoing shall be null and void ab initio and of no force and effect. This Agreement may be assigned by the Company to, or assumed by, a person or entity which is an affiliate of the Company or a successor in interest to substantially all of the business operations of the Company. Upon such assignment, the rights and obligations of the Company hereunder shall become the rights and obligations of such affiliate or successor person or entity.

Exhibit 10.41

(e)Successors; Binding Agreement. This Agreement shall inure to the benefit of and be binding upon personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. In the event of the Executive’s death, all amounts payable hereunder to the Executive that are then unpaid, shall be paid to the Executive’s beneficiary designated by him in writing to the Company or, in the absence of such designation, to Executive’s estate.

(f)Notice. For the purpose of this Agreement, notices and all other communications provided for in the Agreement shall be in writing and shall be deemed to have been duly given when delivered by hand or overnight courier or three days after it has been mailed by United States registered mail, return receipt requested, postage prepaid, addressed to the respective addresses set forth below in this Agreement, or to such other address as either Party may have furnished to the other in writing in accordance herewith, except that notice of change of address shall be effective only upon receipt.

If to the Company:

Sterling Jewelers Inc.

375 Ghent Road

Akron, Ohio 44333

Attn: Signet Chief Human Resources Officer

with copies to:

Signet Jewelers Limited

Imperial Place 3, Maxwell Road

Borehamwood, Herts WD6 1JN

Attn:    Mark A. Jenkins

Weil, Gotshal & Manges LLP

767 Fifth Avenue

New York, NY 10153-0119

Attn: Amy Rubin

If to the Executive:

To Executive’s last address set forth on the payroll records of the Company

(g)Cooperation. The Executive shall provide the Executive’s reasonable cooperation in connection with any action or proceeding (or any appeal from any action or proceeding) which relates to events occurring during the Executive’s employment hereunder.

(h)Withholding Taxes. The Company may withhold from any amounts payable under this Agreement such Federal, state and local taxes as may be required to be withheld pursuant to any applicable law or regulation.

(i)Survival. The provisions of Sections 3, 4, 5, 6, 8, and 9 of this Agreement shall survive the expiration or termination of this Agreement and the Executive’s employment hereunder, irrespective of the reason for any termination

(j)Counterparts. This Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.

[signatures on following page]

Exhibit 10.41

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement on the last date written below.

STERLING JEWELERS INC.

By: /s/ Mark S. Light            

Name:    Mark S. Light

Title:     Chief Executive Officer

Date:    January 29, 2017

EXECUTIVE

/s/ Sebastian Hobbs            

Sebastian Hobbs

Date: January 29, 2017

Exhibit 10.41

SCHEDULE 1

EMPLOYMENT TERMS, DUTIES AND ENTITLEMENTS

Capitalized terms used but not defined herein shall have the meaning ascribed to such terms in the Termination Protection Agreement, dated as of January 29, 2017, by and among Sterling Jewelers Inc. (the “Company”) and Sebastian Hobbs (the “Executive”) to which this Schedule 1 is attached (the “Agreement”).

Exhibit 10.41

Position	President and Chief Customer Officer of the Signet Group
Reporting Line	Executive shall report to the Chief Executive Officer of the Signet Group.
Location	Executive shall relocate to the greater Akron/Cleveland area of Ohio and shall be entitled to receive the relocation benefits set forth in the Letter.
Duties	Executive shall have such duties and authority, consistent with Executive’s position, as may be assigned from time to time by the Chief Executive Officer. Executive shall devote Executive’s full business time and best efforts to the performance of Executive’s duties and will not engage in any other business, profession or occupation for compensation or otherwise which would directly or indirectly conflict or interfere with the rendition of such services, without the prior written consent of the Chief Executive Officer; provided Executive may (i) serve on any board of directors or trustees of any charitable or educational organization or engage in other charitable, civic and professional activities, and (ii) subject to the prior approval of the Chief Executive Officer, in its sole discretion, Executive may accept appointment to any board of directors of any business entity; provided in each case, and in the aggregate, that such activities do not conflict or interfere with the performance of the Executive’s duties or breach the terms of Section 3 or 4 of the Agreement.
Annual Base Salary	Annual rate of $700,000, subject to annual review by the Compensation Committee beginning in the Spring of 2018. Base Salary shall not be reduced unless there is a comparable reduction in the base salaries of other similarly situated executives of Signet.
Annual Bonus	Target Bonus: 75% of Base Salary upon achievement of performance objectives at target for the applicable fiscal year of Signet. Annual Bonus may be less than or greater than Target Bonus, based upon achievement of performance objectives against target levels, up to 150% of Base Salary. Annual Bonus, if any, is payable in a lump sum during the period commencing on the 15th of April and ending on the 31st of May following the end of the applicable fiscal year of Signet.
Long Term Incentive Plan	Annual consideration for long-term awards (as determined in the Compensation Committee’s sole discretion) made in accordance with the terms of the Long Term Incentive Plan.
Employee Benefits	Eligible for all Company health, life and disability insurance and other welfare, and retirement, savings, deferred compensation and fringe employee benefit plans, as in effect from time to time, on the same basis as those benefits are generally made available to senior executives of the Company. Eligible for reimbursement of reasonable business expenses incurred by the Executive during employment in the performance of the Executive’s duties, in accordance with Company policies and subject to timely submission of reimbursement requests.
Time Off	Executive shall be entitled to time off as provided under the Signet US Time Off Program, as in effect from time to time.
Director and Officer Insurance	The Company shall keep in force for the Executive coverage under a directors and officers liability insurance policy, such coverage to be at a level no less than that maintained for substantially all of the executive officers of the Company or Signet (during the period the Executive is an executive officer of Signet) and substantially all of the members of the Board of Directors Signet (during any period the Executive is a member of the Board of Directors of Signet).
Executive Representations	Executive represents and warrants to the Company that the performance by Executive of the duties set forth on the Agreement and this Schedule 1 shall not constitute a breach of, or otherwise contravene, the terms of any employment agreement or other agreement or policy to which the Executive is a party or otherwise bound.

Exhibit 10.41

EXHIBIT A

RELEASE

This RELEASE (“Release”) dated as of ___________, 20__ between Sterling Jewelers Inc., a Delaware corporation (the “Company”), and Sebastian Hobbs (the “Executive”).

WHEREAS, the Company and the Executive previously entered into that certain Termination Protection Agreement dated January 29, 2017 (the “Agreement”); and

WHEREAS, the Executive's employment with the Company has terminated effective ______ __, 20__ (“Termination Date”);

NOW, THEREFORE, in consideration of the premises and mutual agreements contained herein and in the Agreement, the Company and the Executive agree as follows:

1. Capitalized terms not defined herein shall have the meaning as defined under the Agreement.

2.In consideration of the Executive’s release under Paragraph 3 hereof, the Company shall pay to the Executive or provide benefits to the Executive as set forth in Section 2, as applicable, of the Agreement, which is attached hereto and made a part hereof.

3.The Executive, on Executive’s own behalf and on behalf of Executive’s heirs, estate and beneficiaries, does hereby release the Company, and in such capacities, any of its subsidiaries or affiliates, and each past or present officer, director, agent, employee, shareholder, and insurer of any such entities, from any and all claims made, to be made, or which might have been made of whatever nature, whether known or unknown, from the beginning of time, including those that arose as a consequence of Executive’s employment with the Company, or arising out of the severance of such employment relationship, or arising out of any act committed or omitted during or after the existence of such employment relationship, all up through and including the date on which this Release is executed, including, without limitation, any tort and/or contract claims, common law or statutory claims, claims under any local, state or federal wage and hour law, wage collection law or labor relations law, claims under any common law or other statute, claims of age, race, sex, sexual orientation, religious, disability, national origin, ancestry, citizenship, retaliation or any other claim of employment discrimination, including under Title VII of the Civil Rights Acts of 1964 and 1991, as amended (42 U.S.C. §§ 2000e et seq.), Age Discrimination in Employment Act, as amended (29 U.S.C. §§ 621, et seq.); the Americans with Disabilities Act (42 U.S.C. §§ 12101 et seq.), the Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.), the Family and Medical Leave Act (29 U.S.C. §§ 2601 et seq.), the Fair Labor Standards Act (29 U.S.C. §§ 201 et seq.), the Employee Retirement Income Security Act of 1974, as amended (29 U.S.C. §§ 1001 et seq.) and any other law (including any state or local law or ordinance) prohibiting employment discrimination or relating to employment, retaliation in employment, termination of employment, wages, benefits or otherwise.  In connection with this release provision, the Executive does not waive the Executive’s right to file a charge with the EEOC or participate in an investigation conducted by the EEOC; however, the Executive expressly waives the Executive’s right to monetary or other relief should any administrative agency, including but not limited to the EEOC, pursue any claim on the Executive’s behalf, except that the Executive is not prohibited from receiving any monetary award from the Securities and Exchange Commission pursuant to Section 21F of the Securities Exchange Act of 1934.  The Executive relinquishes any right to future employment with the Company and the Company shall have the right to refuse to re-employ the Executive, in each case without liability of the Executive or the Company.  The Executive acknowledges and agrees that even though claims and facts in addition to those now known or believed by him to exist may subsequently be discovered, it is Executive’s intention to fully settle and release all claims he may have against the Company and the persons and entities described above, whether known, unknown or suspected.

4.The Company and the Executive acknowledge and agree that the release contained in Paragraph 3 does not, and shall not be construed to, release or limit the scope of any existing obligation of the Company and/or any of its subsidiaries or affiliates (i) to indemnify the Executive for Executive’s acts as an officer or director of Company in accordance with the Certificate of Incorporation and all agreements thereunder, (ii) to pay any amounts or benefits pursuant to Paragraph 2 of this Release or any Accrued Rights (as defined in the Agreement) to which the Executive is entitled under the Agreement, or (iii) with respect to the Executive’s rights as a shareholder of the Company, Signet or any of their subsidiaries.

5.Executive acknowledges that pursuant to the Release set forth in Paragraph 3 above, Executive is waiving and releasing any rights he may have under the Age Discrimination in Employment Act of 1967 (“ADEA”) and that Executive’s waiver and release of such rights is knowing and voluntary. Executive acknowledges that the consideration given for the ADEA waiver and release under this Release is in addition to anything of value to which Executive was already entitled.

(a)Executive further acknowledges that he has been advised by this writing that:

Exhibit 10.41

(i)Executive should consult with an attorney prior to executing this Release and has had an opportunity to do so;

(ii)Executive has up to twenty-one (21) days within which to consider this ADEA waiver and release;

(iii)Executive has seven (7) days following Executive’s execution of this Release to revoke this ADEA waiver and release, but only by providing written notice of such revocation to the Company in accordance with the “Notice” provision in Section 15(f) of the Agreement;

(iv)the ADEA waiver and release shall not be effective until the seven (7) day revocation period has expired; and

(v)the twenty-one (21) day period set forth above shall run from the date Executive receives this Release. The Parties agree that any modifications made to this Release prior to its execution shall not restart, or otherwise affect, this twenty-one day (21) period.

(b)    It is the intention of the parties in executing this Release that this Release shall be effective as a full and final accord and satisfaction and release of and from all liabilities, disputes, claims and matters covered under this Release, known or unknown, suspected or unsuspected.

6. This Release shall become effective on the first (1^st) day following the day that this Release becomes irrevocable under Paragraph 5. All payments due to the Executive shall be payable in accordance with the terms of the Agreement.

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Exhibit 10.41

IN WITNESS WHEREOF, the parties have executed this Release on the date first above written.

STERLING JEWELERS INC.

By:

Name:

Title:

SEBASTIAN HOBBS

EX-10.43

Exhibit 10.42

Personal Employment Agreement

This Personal Employment Agreement (this “Agreement”), is entered into on _______ ___, 2017, by and between R2Net Israel Ltd. (Registration Number 51-395749-8) (the “Company”) of 10 Hasadnaot Street, Herzeliya, Israel, and Oded Edelman (ID No. 022707145) (the “Executive”) of 8 Yizhar Street, Ramat-Hashron, Israel.

WHEREAS, Sterling Jewelers Inc., a Delaware corporation (“Purchaser”), Signet Jewelers Ltd., a Bermuda corporation (“Purchaser Parent”), R2Net Inc. (“Company Parent”) and other persons named therein have entered into an Agreement and Plan of Merger, dated August 23, 2017 (the “Merger Agreement”), whereby, subject to the terms and conditions of the Merger Agreement, Purchaser acquired Company Parent at the closing of the Merger Agreement (such date, the “Effective Date”); and

WHEREAS, as of August 23, 2017 the Parties enter into an employment agreement that became effective as if the closing of the Merger Agreement (the "Previous Employment Agreement")

WHEREAS, due to the Executive's request to amend his pension arrangement, including the amending the relevant basic pensionable salary for calculating the Company's contributions to the severance component severance pay and pension component, as described in the Previous Employment Agreement, the Parties agreed to amend the Executive's pension arrangement and therefore the salary structure and to replace the Previous employment Agreement with this Agreement; and

WHEREAS, subject to the approval of the Israeli Ministry of Economy and Industry according to Section 28 to the Severance Pay and effective as of such approval, the Company and the Executive wish to replace the Previous Employment Agreement with this Agreement, and hereby agree, as follows.

NOW, THEREFORE, it has accordingly been warranted, provided and agreed by the parties as follows:

1.    Recitals, Headings and Interpretation

1.1 The recitals to this Agreement constitute an integral part hereof.

1.2 The division of the terms of this Agreement into clauses and the headings is solely for convenience of reference and shall not affect its interpretation. The language used in this Agreement shall be deemed to be the language negotiated and chosen by the parties hereto to express their mutual intent, and the parties intend that no rule of construction against the drafting party will be applied against any Person. The use of the words “includes” or “including” in this Agreement or in any of the agreements contemplated hereby shall be by way of example rather than by limitation.

1.3 For purposes of this Agreement, “Cause” shall mean (A) fraud, embezzlement, gross insubordination or any act of moral turpitude or misconduct, in each case, on the part of the Executive; (B) conviction of or the entry of a plea of nolo contendere by the Executive for any felony; or (C) (x) a material breach by the Executive of Executive’s duties, responsibilities or obligations under this Agreement or (y) the willful failure or refusal by the Executive to perform and discharge a specific lawful directive issued to Executive by the chief executive officer of Purchaser Parent or the board of directors of Purchaser Parent within a reasonable period of time, not to be less than five (5) business days, following written notice thereof to the Executive by the Company or the board of directors of Purchaser Parent.

1.4 For purposes of this Agreement, “Company Group” shall mean the Company, Purchaser Parent, Purchaser and their respective subsidiaries.

Exhibit 10.42

1.5 For purposes of Section 5 of this Agreement, “Disability” shall mean any physical or mental disability or infirmity of Executive that prevents, or in the good faith determination of the Company, would be reasonably likely to prevent, the performance of Executive’s essential duties for a period of (i) one hundred and twenty (120) consecutive days or (ii) one hundred and eighty (180) non-consecutive days during any twelve (12) month period and which cannot be reasonably accommodated by the Company without undue hardship. Any question as to the existence, extent, or potentiality of Executive’s Disability upon which Executive and the Company cannot agree, including the determination as to whether the Disability can be reasonably accommodated by the Company, shall be determined by a qualified, independent physician selected by the Company and approved by Executive (which approval shall not be unreasonably withheld). The determination of any such physician shall be final and conclusive for all purposes of this Agreement.

2.    Exclusivity of the Agreement

2.1 This Agreement is personal and the terms and conditions of the employment of the Executive shall be solely as set forth in this Agreement.

2.2 Except as expressly provided in this Agreement, the Executive shall not be entitled to any payments or other benefits in respect of his/her employment and the termination of his/her employment with the Company.

3.    Absence of Impediment to the Executive's Employment

The Executive represents, warrants, confirms and undertakes that he/she is entitled to enter into this Agreement and to assume all of the obligations pursuant hereto, that there is no contractual or other impediment, including physical or mental health issues, to his/her entering into this Agreement, fulfilling his/her obligations hereunder or to his/her employment with the Company and that in entering into this Agreement he/she is not in breach of any other agreement or obligation to which he/she is or was a party.

4.    Position and Duties

4.1 The Executive shall be employed by the Company in the position as set forth in Exhibit A and, in the discharge of his/her duties, shall report to the person(s) set forth in Exhibit A.

4.2 Executive shall devote Executive’s full business time, attention and skill to the performance of Executive’s duties under this Agreement and shall not engage in any other business or occupation that (x) conflicts with the interests of the Company Group, or (y) interferes with the proper and efficient performance of Executive’s duties for the Company Group, including pursuant to the PIAA Agreement (defined below). Subject to the foregoing, nothing herein shall preclude Executive from (i) subject to the approval of the chief executive officer of Purchaser Parent, serving as a member of the boards of directors or advisory boards (or their equivalents in the case of a non-corporate entity) of businesses and charitable organizations that do not compete with the Company Group, (ii) engaging in charitable activities and community affairs, and (iii) managing Executive’s personal investments and affairs that do not compete with the Company Group; provided, however, that the activities set out in clauses (i), (ii), and (iii) shall be limited by Executive so as not to interfere, individually or in the aggregate, with the performance of Executive’s duties and responsibilities hereunder.

Exhibit 10.42

4.3 The Executive shall, at all times, act in a manner suitable for his/her position and status in the Company.

4.4 The Executive shall not, without the prior written authorization of the Company, directly or indirectly undertake any other employment, whether as an employee of another employer or independently as an agent, consultant, director or in any other manner (whether for compensation or otherwise), and shall not assume any position or render services in any of the above-stated manners to any other entity or person.

4.5 The Executive undertakes to notify the Company immediately and without delay regarding any matter or subject in respect of which he/she had or has a personal interest or which might create a conflict of interest with his/her position in the Company.

4.6 [Reserved].

4.7 The Executive shall be based in the Company's Israeli offices, but he/she understands that his/her position involves international and local travel as required to discharge his/her responsibilities hereunder.

4.8 The Executive shall not receive any payment and/or benefit from any third party, directly or indirectly, in connection with his/her employment. In the event the Executive breaches this Sub-section, without derogating from any of the Company’s right by law or contract, such benefit or payment shall become the sole property of the Company and the Company may set-of such amount from any sums due to the Executive. Unless otherwise stated in Purchaser Parent's FCPA or other policies, this Section 4.8 does not apply to gifts or similar benefits with insignificant value.

4.9 The Executive acknowledges that the Company is committed to the restrictions as mentioned in the Prevention of Sexual Harassment Law, 1998, and that sexual harassment is a severe disciplinary offence.

4.10 The Executive undertakes not to make improper use of computer, computer devices, internet and/or e-mails, including (but not limited to) use of illegal software or the receipt and/or transfer of pornographic material, and/or any other material that is not connected with his/her work and may be harmful to the Company, other employees or any other third party, as further detailed in the Purchaser Parent's policy (as will be adapted to Israeli law), as may be amended from time.

4.11 The Executive acknowledges and agrees that personal information related to him/her and the Executive's terms of employment at the Company, as shall be received and held by the Company will be held and managed by the Company, and that the Company shall be entitled to transfer such information to third parties, in Israel or abroad, provided that : (a) such transfer shall be made only in order for the Company to comply with any relevant legal requirements or due to business purposes of the Company (including transactions related to the Company); (b) that the transferred information shall be limited to the reasonable and necessary scope; and (c) that the receiver of the information shall be bound, to the extent possible, to confidentiality obligations so as to preserve the privacy of such information at least at the level of privacy kept by the Company itself regarding the information.

4.12 The Executive shall be subject to the same written policies of the Purchaser Parent or any of its subsidiaries or affiliates and the Board of Directors of Purchaser Parent applicable to executives,

Exhibit 10.42

including the Code of Conduct and any policy of the Board of Directors of Purchaser Parent relating to claw back of compensation, as they exist from time to time during the Executive’s employment with the Company or any of its affiliates; provided that such policies were brought to the attention of the Executive by way of a written notice.

5.    Employment Term and Termination

5.1 The Executive's employment by the Company shall commence on the date set forth in Exhibit A (such date, the “Commencement Date”).

5.2 The Executive’s employment may be terminated upon the earliest to occur of (i) Executive’s death or a termination of employment by reason of Disability, (ii) a termination of employment by the Company with or without Cause, or (iii) a termination of employment by Executive, and, in each case, subject to the delivery of a prior written notice by the terminating party (the “Notice Period”). The Notice Period will be as set forth in Exhibit A.

5.2.1    Termination Due to Death or Disability. Executive’s employment shall terminate automatically upon Executive’s death. Subject to (and to the full extent permitted under) applicable law, the Company may terminate Executive’s employment immediately upon the occurrence of a Disability, such termination to be effective upon Executive’s receipt of written notice of such termination. Upon Executive’s death, or in the event that Executive’s employment is terminated due to Executive’s Disability, Executive or Executive’s estate or Executive’s beneficiaries, as the case may be, shall be entitled to payment in lieu of the Notice Period (as applicable to death or Disability) which will be due and payable on the latest of (i) within 10 days of the date of termination, or (ii) the next regularly scheduled payroll date following the effective date of termination.

5.2.2    Termination by the Company for Cause. The Company may terminate Executive’s employment at any time for Cause, effective immediately upon Executive’s receipt of written notice of such termination and the Company shall have no obligation to pay any compensation during or in lieu of the Notice Period.

5.2.3     Termination by the Company without Cause. The Company may terminate Executive’s employment at any time without Cause by giving the Executive a prior written notice of the Notice Period. In the event that Executive’s employment is terminated by the Company without Cause, the Company may take one of two actions: (1) the Company may continue to pay Executive his Salary and all other social benefits as well as bonuses and other incentives which Executive earns pursuant to this Agreement and applicable law, in each case, for the duration of the Notice Period, and Executive will continue to work on a normal schedule for the duration of the Notice Period; or (2) in lieu of requiring Executive to provide services throughout the Notice Period, the Company may elect, at the Company's sole discretion, to terminate the Executive’s employment, immediately or at any time during the Notice Period, provided that in such event, even though Executive is not actively employed during the Notice Period, the Executive shall be entitled to receive from the Company a lump sum cash payment equal to his Salary and the employer contribution to the social contributions (but, for the sake of clarity, not for bonuses and other incentives to which he may otherwise be entitled) for any such portion of the remaining Notice Period as though the Executive continued to be actively employed by the Company (“Payment in Lieu of Notice”).

Exhibit 10.42

5.2.4    Termination (Resignation) by Executive. Executive may terminate (resign) Executive’s employment for any reason by providing the Company a prior written notice of the Notice Period (as applicable to resignation); provided that the Company may elect to waive all or any portion of the Notice Period. In the event of a termination of employment by Executive under this Section, Executive shall be entitled to the Payment in Lieu of Notice (as it applies with respect to the Notice Period for resignation). In the event that the Executive terminates (resigns) his/her employment with the Company, for any reason, without the delivery of a written notice in accordance with Section 5.2 above, or without the completion of the Notice Period or any part thereof, the Company will be entitled to deduct from any sums that it may owe the Executive an amount equal to the Salary and social benefits that would have been paid to the Executive during the Notice Period, had he worked during such period.

5.3 During the Notice Period, the Executive shall continue to perform his/her duties until the conclusion of the Notice Period. Nevertheless, the Company shall be entitled, but not obligated, at any time prior to the expiration of the Notice Period, at its sole discretion: (i) to waive the Executive's actual work during the Notice Period, or to reduce the scope of the Executive's work hours, while continuing to pay the Executive his/her regular payments and benefits until the completion of the Notice Period; or (ii) terminate this Employment Agreement and the employment relationship, at any time prior to the expiration of the Notice Period, and, if applicable, make the payments in accordance with the relevant subsection in Section 5.2 above.

It is hereby expressly stated that the Company reserves the right to terminate the Executive’s employment at any time during the Notice Period, regardless of whether notice of termination of employment was delivered by the Company or whether such notice was delivered by the Executive. In the latter case, such termination shall not constitute a dismissal of the Executive by the Company.

5.4 The Executive undertakes that immediately upon the termination (including, for the sake of clarity, resignation) of his/her employment with the Company (for any reason), he/she shall act as follows:

5.4.1    He/she shall deliver and/or return to the Company all the documents or other letters, notes, reports and other papers in his/her possession and relating to his/her employment with the Company and the fulfillment of his/her duties, as well as any equipment and other property belonging to the Company that was placed at his/her disposal, including any Company car, computer equipment, telephone equipment, Executive ID badge or other equipment;

5.4.2    Following coordination with the Company's IT persons, he/she shall delete any information relating to the Company or its business from his/her personal computer, if any; and

5.4.3    He/she shall coordinate the termination of his/her employment with his/her supervisors, and he/she shall transfer in an orderly fashion and in accordance with Company procedures and in accordance with the timetable determined by his/her supervisors, all documents and information and all matters with which he/she dealt, to whomever the Company instructs, all in a manner satisfactory to the Company.

Exhibit 10.42

6.    Working Hours

6.1    The working hours of the Executive shall be as required by the nature of the Executive’s full-time senior position in the Company, not less than 5 business days a week. The regular weekly rest day is Saturday.

6.2    In consideration of the conditions and circumstances of the Executive’s management position and duties in the Company which requires a special degree of trust and as the conditions and circumstances of employment do not enable the Company to supervise the Executive's hours of work, the provisions of the Hours of Work and Rest Law, 1951 shall not apply to the Executive and he/she shall not be entitled to any additional consideration for work during overtime hours and/or on days that are not regular business days, except as specified in this Agreement. The Executive acknowledges that the consideration set for him/her hereunder nevertheless includes within it consideration that would otherwise have been due to him/her by law.

6.3    At the Company's request, Executive undertakes to report to the Company the actual working hours that will be performed by the Executive, in accordance with the applicable practices and policies of the Company in regards to such reports.

7.    Salary

7.1 As compensation for the Executive’s performance as a full-time employee, the Company shall pay the Executive a gross monthly salary as set forth in Exhibit A (the “Salary”). The Salary will be paid to the Executive in accordance with the Company's normal pay-roll practices, no later than the 9th day of each month. Any payment or benefit under this Agreement (including payments as described in Sections 8.3a, 9.3, 10 hereof or any bonuses or the like), other than the Salary, shall not be considered as a salary for any purpose whatsoever, and the Executive shall not maintain or claim otherwise.

7.2 For the avoidance of any doubt, the Salary and the fringe benefits that are described below constitute the overall consideration for the Executive’s work and in view of his/her position and status, and he/she shall not be entitled to any additional consideration, of any form, for his/her work during additional and overtime hours and on weekends or holidays, insofar as required.

8. Pension Arrangement

The Company encourages the Executive to tailor a pension arrangement, a Managers' Insurance Policy (the “Policy”) and/or Pension Fund (the “Pension Fund”) and/or alike, or a combination of plans that best suit the Executive's anticipated future needs. Therefore, the Executive shall be entitled to a pension arrangement in accordance with his/her choose. For the avoidance of doubt, in the event the Executive elects to combine plans, the contributions percentages will relate to such portion of the Determined Salary that the Executive has allocated towards each benefit plan as follows:

8.1 The Company shall contribute for severance compensation (the “Severance Contribution”) as set forth in Exhibit A.

8.1a. For the avoidance of any doubt, the Company's contributions for severance compensation based on part of the balance between the Base Salary that exceed the Determined Salary, as set forth in Exhibit A, shall be paid to the Exeutive on a monthly basis through the pay-slip and shall be deemed as part of the Salary (the "Severance Part in the Salary"). It is hereby agreed that the Parties will apply for special approval of the Israeli Ministry of Economy and Industry according to Section 28 to the Severance Pay that such Severance Part in the Salary shall be deemed as part of the Executive's Salary.

Exhibit 10.42

8.2 In addition, the Company shall contribute for pension compensation ('Tagmulim') towards the pension arrangement, as set forth in Exhibit A.

8.3 In the event that the Executive chooses Policy arrangement, the pension compensation ('Tagmulim') shall include the Company's payment for purchase of disability insurance coverage sufficient to secure 75% of the Determined Salary; provided that the Company's contributions solely for pension compensation shall be not less than 5% and subject to the consent of the insurance company to insure the Executive. For the avoidance of any doubt, in the event that the cost to the Company shall be more than the required contributions rates towards pension compensation as described in Section 8.2 above) due to the cost of the disability insurance, the total cost of the Company's contributions to pension compensation and disability insurance collectively shall not exceed 7.5% of the Determined Salary.

8.3a For the avoidance of any doubt, the Company's contributions for pension contributions based on part of the balance between the Base Salary that exceed the Determined Salary, as set forth in Exhibit A, shall be paid to the Exeutive on a monthly basis through the pay-slip as an additional payment in lieu of pension component (the "Additional Payment In Lieu Of Pension Component"). It is hereby agreed that said additional payment shall not constitute a salary component for any purpose, including for the purpose of calculating any severance payment, fringe benefits and/or social contributions of any kind and the Executive shall not claim or demand from the Company or any one relating to it any claim regarding supplemental payments towards the pension component at the funds due to such special arrangement as described in Sections 8.3, 8.4a that was held due to the Executive's sole request.

8.4 The Company shall deduct from the Determined Salary the Executive's contributions for pension compensation ('Tagmulim') the pension arrangement, as set forth in Exhibit A.

8.4a. Determined Salary according to Section 8 in this Agreement means a gross monthly salary of NIS 40,000,as set forth in Exhibit A. The Parties agreed that the Company's cost due to contributions towards the pension arrangement based Determined Salary and the additional payments in accordance with Sections 8.1a and 8.3a shall not derogate the Executive's rights as described in his Previous Employment Agreement and shall not increase the total Company's costs.

8.5 Any tax liability in connection with pension arrangement and such additional payments as described in Sections 8.1a and 8.3a shall be borne solely by the Executive.

8.6 The Executive agrees and acknowledges that the Company’s Severance Contribution in accordance with the foregoing, shall be in lieu of 100% of the severance payment to which the Executive (or his/her beneficiaries) shall be entitled with respect to the Determined Salary and the contributions were made and for the period in which they were made, pursuant to Section 14 of the Severance Pay Law, 1963 (the “Severance Law”) in accordance with the instructions of “The General Approval Regarding Employers’ Payments to Pension Fund and Insurance Fund Instead of Severance Pay” (the “General Approval”, a copy of which is attached hereto as Annex A), as amended from time to time in case the Executive chooses a Policy and in the event that the Executive chooses Pension Fund arrangement in accordance with Sections 7-9 to the Extension Order General Insurance Pension In The Israeli Market. The Executive agrees that he shall not be entitled to any additional severance pay, including without limitation, with respect to the Severance Part in the Salary.

Exhibit 10.42

8.7 The Company hereby waives any of its rights to refund monies from the payments it transfers to the Policy/Pension Fund in accordance with this Section, unless the Executive's right to severance pay is denied by virtue of a court order, under Sections 16 or 17 of the Severance Law, and in the same amount which was denied, or the Executive withdraws monies from the Policy and/or the Pension Fund not due to a Granting Event. The term “Granting Event” shall mean - death, disability or retirement at the age of sixty or more.

9. Advanced Study Fund

9.1 The Company shall make monthly contributions on the Executive's behalf to a recognized advanced study fund (the “Study Fund” (“Keren Hishtalmut”)) and shall deduct from the Salary his/her part at the Study Fund and transfer those monies to the Study Fund, as set forth in Exhibit A.

9.2 For the avoidance of any doubt, said contributions towards the Study Fund shall be capped up to the tax-exempt ceiling for Study Fund (currently NIS 15,712) set by the applicable law for tax purposes.

9.3 The contributions based on part of the Executive Base Salary that exceed the tax exempt of tax-exempt ceiling for Study Fund shall be paid to the Executive on a monthly basis through the pay-slip as an additional payment in lieu of the Study Fund. It is hereby agreed that such additional payment shall not constitute a salary component for any purpose, including for the purpose of calculating any severance payment, fringe benefits and/or social contributions of any kind and the Executive shall not claim or demand from the Company or any one relating to it any claim regarding supplemental payments towards the Study Fund directly to the fund due to such special arrangement as described in this Section that was held due to the Executive's sole request.

10.    Additional Incentives

In consideration for Executive's employment, including the non-compete undertakings in the PIAA Agreement (as defined below). The Executive agrees that such additional incentives are contractual payments and above any statutory rights and any additional Incentives that may be based on the Executive's salary shall be based on his Base Salary without the additional Severance Part in the Salary:

10.1 Equity-Based Retention Grant. Subject to the approval of the Compensation Committee of the Purchaser Parent and the lapse of 30 days following qualification of the Purchaser Parent's equity-incentive plan with the Israeli Tax Authority for purposes of Section 102 (under the applicable capital gains route) of the Israeli Income Tax Ordinance, Purchaser Parent shall grant the Executive the equity-based awards under Section 102 (under the applicable capital gains route) as set forth in Exhibit A (the “Awards”). The grant of such Awards shall be subject to Executive’s execution of the Purchaser Parent’s standard Award agreement, and such Awards will be governed by the terms and conditions of the share incentive plan of the Purchaser Parent, all as further detailed in Exhibit A. The Purchaser Parent's equity-incentive plan shall be submitted to the Israeli Tax Authority for purposes of Section 102 and all actions reasonably necessary to make grants thereunder shall be taken as soon as reasonably practicable after the Effective Date, and no later than 60 days thereafter.

Exhibit 10.42

10.2 Short-Term Incentive Plan. Executive shall be eligible to participate in the Purchaser Parent’s Short-Term Incentive Plan, as set forth in Exhibit A and as determined by the Board of Directors of the Purchaser Parent, on payment terms and conditions no less favorable than those provided generally to the other similarly situated employees of the Company Group, for so long as the same may be in effect; provided that the performance goals may be based on the Company Parent performance. The short-term incentive plan is a discretionary plan and is subject to change; provided that the target and maximum percentages of base salary set forth in Exhibit A shall not be reduced unless there is a comparable reduction for similarly situated employees.

10.3 Long-Term Incentive Plan. Executive shall be eligible, beginning with the long-term awards granted in fiscal year 2020 (the fiscal year ending January 31, 2020), for annual consideration for long-term awards (as determined in the Compensation Committee of the Board of Directors of Purchaser Parent’s sole discretion) made in accordance with the terms of Purchaser Parent’s Long Term Incentive Plan on terms and conditions no less favorable than those provided generally to the other similarly situated employees of the Company Group, for so long as the same may be in effect (at the sole discretion of the Compensation Committee of the Board of Directors of the Purchaser Parent).

11.    Vacation

The Executive shall be entitled to annual vacation days as set forth in Exhibit A. Notwithstanding the foregoing, the Executive shall make all efforts to exercise his/her annual vacation; however, if the Executive is unable to utilize all the vacation days by the end of a calendar year, the Executive shall be entitled to accumulate the unused balance of the vacation days standing to his/her credit up to and not exceeding the Maximum Quota (as defined in Exhibit A(. Any amounts exceeding such Maximum Quota shall be cancelled by the Company and will not be redeemable in any event. For avoidance of any doubt, redemption of unused vacation upon termination shall be calculated on the basis of the Base Salary.

12.    Sick Pay and Recreation Pay ('Dme'i Havra'a')

The Executive shall be entitled to paid sick days and Recreation Pay ('Dme'i Havra'a') in accordance with the law, except that full payment shall be made for any day of absence as of the first sick day.

13.    Indemnification, Reimbursement and Travel Expenses

13.1 Indemnity Insurance. Executive shall be entitled to indemnification, exculpation and advancement of expenses, as well as insurance coverage (to the same extent covering similarly situated employees), in his capacity as an employee and officer of the Company, on terms and conditions no less favorable than those provided generally to the other similarly situated employees of the Company Group, for so long as the same may be in effect, during the term of his employment and thereafter.

13.2 Reimbursement. The Executive shall be entitled to reimbursement of expenses in accordance with the Company's practices and policies for similarly-situated employees, as may be modified from time to time.

Exhibit 10.42

13.3 Travel Allowance. The Executive shall be entitled to a travel allowance for travel from his/her home to the Company's premises and back, as set forth in Exhibit A.

14.    Confidentiality, Non-Competition and Intellectual Property Matters

Executive agrees to be bound by, and shall have executed and delivered to the Company, the Confidential Information, Non-Compete and Invention Assignment Agreement, substantially in the form of Exhibit B hereto (the “PIAA Agreement”).

15.    General

15.1 The Executive shall bear all the taxes deriving from the rights and benefits received by him/her pursuant hereto. It is hereby expressed that all the amounts specified in this Agreement are gross, and statutory tax and all the other compulsory payments, including health insurance, contributions and national insurance contributions, shall be deducted from them and from all the rights and benefits received by the Executive pursuant hereto.

15.2 This Agreement and all rights and duties of the parties hereunder shall be exclusively governed by and interpreted in accordance with the laws of the State of Israel. The competent courts of the State of Israel, located in Tel Aviv Jaffa, shall have exclusive jurisdiction over the parties with regard to this Agreement, its execution, interpretation and performance.

15.3 As of the Effective Date, this Agreement, including the Exhibits and Schedules hereto, and the other documents delivered pursuant thereto constitute the full and entire understanding and agreement between the parties with regard to the subjects hereof, supersedes all other agreements between or among any of the parties with respect to the subject matter hereof, including the Prior Agreement, and no party shall be liable or bound to any other in any manner by any oral or written representations, warranties, covenants and agreements except as specifically set forth herein and therein. Each party expressly represents and warrants that it is not relying on any oral or written representations, warranties, covenants or agreements outside of this Agreement.

15.4 Any notice sent by prepaid registered mail, fax or e-mail by one party to the other shall be deemed to have been received by the addressee within three business days of its dispatch, and if delivered by hand, fax or e-mail, at the time of its delivery.

15.5 This Agreement shall be deemed due notification regarding the Executive's employment terms in accordance with the provisions of the Notice to Employee and to Candidate (Employment Terms and Screening and Acceptance to Work Proceedings) Law, 2002 and the regulations thereunder.

[signature page follows]

Exhibit 10.42

IN WITNESS WHEREOF THE PARTIES HAVE SET THEIR HANDS HERETO AS OF THE DATE FIRST WRITTEN ABOVE:

R2Net Israel Ltd.Oded Edelman

Signature: /s/ Anat Afek                    Signature: /s/ Oded Edelman    

Name:

Title:

Exhibit 10.42

EXHIBIT A - TERMS OF EMPLOYMENT

Name	Oded Edelman
ID#	022707145
Address of Executive	8 Yizhar Street, Ramat-Hashron, Israel
Position	President, JamesAllen.com and Signet Chief Digital Innovation Advisor
Executive's Supervisor (Executive shall report to)	Reports to CEO, Purchaser Parent
Appointment percentage	100% position (full time)
Commencement Date	Effective Date
Salary	Base Salary: NIS 154,131(gross) Severance Part in the Salary: Monthly gross amount of 9,507. Such amount reflects 8.33% of the balance between the Base Salary and the Determined Salary. the Base Salary and the Severance Part in the Salary collectively shall be defined as the Salary
Determined Salary	NIS 40,000 (gross)
Severance Contribution	8.33% of the Determined Salary
Company's/ Executive's portion of the pension compensation ('Tagmulim')	Company: 6.5% of the Determined Salary Executive: 6% of the Determined Salary
Additional Payment In Lieu Of Pension Component	Monthly gross amount of NIS 7,418.5. Such amount reflects 6.5% of the balance between the Base Salary and the Determined Salary.
Study Fund	Company: 7.5% up to the tax-benefit ceiling as described in the Agreement Executive: 2.5% up to the tax-benefit ceiling as described in the Agreement
Additional Payment In Lieu Of Study Fund	Monthly gross amount of NIS 10,381. Such amount reflects 7.5% of the balance between the Base Salary and the tax-exempt ceiling for Study Fund (currently NIS 15,712) set by the applicable law for tax purposes.
Vacation Days Per Year	25 days
Maximum Quota of Vacation Days	45 days
Notice Period	Termination without Cause - 12 months Termination with Cause - zero Termination for Death or Disability - One month Resignation (for whatever reason) - 30 days
Travel Allowance	NIS 400 per month (gross)
Equity-Based Awards	Executive shall be issued, as soon as reasonably practicable after the qualification of the incentive plan with the ITA as contemplated in Section 10.1, a one-time restricted stock award of 33,962 shares of common stock of Purchaser Parent under the Signet Jewelers Limited Omnibus Incentive Plan (the “Retention Award”). One-third (1/3) of the Retention Award will vest on the date Purchaser Parent announces the fiscal year 2019 results (expected to occur in April 2019) and two-thirds (2/3) of the Retention Award will vest on the thirty-six month anniversary of the Effective Date, subject to continued employment on each applicable vesting date. Any unvested Retention Award shall be fully accelerated upon termination by the Company, without Cause or upon death and Disability.

Exhibit 10.42

STIP	%(Target) - 75% $(Target) - $393,750 %(Max) - 150% $(Target) - $787,500 * Executive shall be entitled to a pro-rated short-term incentive plan bonus for the period from the Effective Date through the end of fiscal year 2018, based on achievement of performance targets to be determined by the board of directors of Purchaser Parent. Executive shall not be entitled to any other cash bonus for calendar year 2017.
Sick Leave	According to the law
Recreation Pay	According to the law

Exhibit 10.42

EXHIBIT B - PIAA AGREEMENT

(enclosed)

Exhibit 10.42

[TRANSLATED FROM HEBREW- THE HEBREW VERSION IS THE BINDING VERSION]

ANNEX “A”

GENERAL APPROVAL REGARDING PAYMENTS BY EMPLOYERS

TO A PENSION FUND AND INSURANCE FUND IN LIEU OF SEVERANCE PAY

By virtue of my power under section 14 of the Severance Pay Law, 5723-1963 (hereinafter: the “Law”), I certify that payments made by an employer commencing from the date of the publication of this approval for his employee to a comprehensive pension benefit fund that is not an insurance fund within the meaning thereof in the Income Tax (Rules for the Approval and Conduct of Benefit Funds) Regulations, 5724-1964 (hereinafter: the “Pension Fund”) or to managers insurance including the possibility to receive annuity payment under an insurance fund as aforesaid (hereinafter: the “Insurance Fund”), including payments made by the employer by a combination of payments to a Pension Fund and an Insurance Fund (hereinafter: the “Employer's Payments”), shall be made in lieu of the severance pay due to the said employee in respect of the salary from which the said payments were made and for the period they were paid (hereinafter: the “Exempt Salary”), provided that all the following conditions are fulfilled:

(1)The Employer's Payments -

(a)to the Pension Fund are not less than 14¹/₃% of the Exempt Salary or 12% of the Exempt Salary if the employer pays, his employee’s benefit in addition thereto payments to supplement severance pay to a benefit fund for severance pay or to an Insurance Fund in the employee's name in an amount of 2¹/₃% of the Exempt Salary. In the event the employer has not paid the above 2¹/₃% in addition to the said 12%, his payments shall be only in lieu of 72% of the employee's severance pay;

(b)to the Insurance Fund are not less than one of the following:

(1)13¹/₃% of the Exempt Salary, if the employer pays for his employee in addition thereto also payments to secure monthly income in the event of disability, in a plan approved by the Commissioner of the Capital Market, Insurance and Savings Department of the Ministry of Finance, in an amount required to secure at least 75% of the Exempt Salary or in an amount of 2¹/₂% of the Exempt Salary, the lower of the two (hereinafter: “Disability Insurance”);

(2)11% of the Exempt Salary, if the employer paid, in addition, a payment to the Disability Insurance, and in such case the Employer's Payments shall be only in lieu of 72% of the Employee's severance pay;

In the event the employer has made payments in addition to the foregoing payments to supplement severance pay to a benefit fund for severance pay or to an Insurance Fund in the employee's name in an amount of 2¹/₃% of the Exempt Salary, the Employer's Payments shall replace 100% of the employee's severance pay.

(2)No later than three months from the commencement of the Employer's Payments, a written agreement was executed between the employer and the employee which included:

(a)the employee’s consent to an arrangement pursuant to this approval in a text specifying the Employer's Payments, the Pension Fund and Insurance Fund, as the case may be; the said agreement shall also include the text of this approval;

(b)an advance waiver by the employer of any right which s/he may have to a refund of monies from its payments, except in cases in which the employee’s right to severance pay was denied by a final judgment pursuant to sections 16 or 17 to the Law and/or in cases in which if such severance pay was denied the employee has withdrawn monies from the Pension Fund or Insurance Fund other than by reason of an entitling event; for these purposes “Entitling Event” means death, disability or retirement at or after the age of 60.

Exhibit 10.42

(3)This approval is not such as to derogate from the employee's right to severance pay pursuant to any law, collective agreement, extension order or employment agreement, in respect of salary over and above the Exempt Salary.

15th Sivan 5758 (9th June 1998).

Eliahu Ishai

Minister of Labor and Welfare

EX-12.1

Exhibit 12.1

Computation of Ratio of Earnings to Fixed Charges and Preferred Share Dividends

(in millions, except ratios)	Fiscal 2018		Fiscal 2017		Fiscal 2016		Fiscal 2015		Fiscal 2014
Earnings:
Income before income taxes	$	527.2	$	713.8	$	657.8	$	540.6	$	566.5
Fixed charges (see below)	228.7		224.2		221.1		190.3		111.9
Total earnings	$	755.9	$	938.0	$	878.9	$	730.9	$	678.4
Fixed charges:
Interest expense, net(1)	$	49.0	$	46.6	$	42.3	$	28.6	$	3.6
Amortization of debt discount and issuance costs(1)	3.7		2.8		3.6		7.4		0.4
Estimate of interest within rental expense(2)	176.0		174.8		175.2		154.3		107.9
Total fixed charges	$	228.7	$	224.2	$	221.1	$	190.3	$	111.9
Ratio of earnings to fixed charges	3.31		4.18		3.98		3.84		6.06
Fixed charges and preferred share dividends:
Fixed charges (per above)	$	228.7	$	224.2	$	221.1	$	190.3	$	111.9
Preferred share dividends(3)	33.4		15.6		n/a		n/a		n/a
Total fixed charges and preferred share dividends	$	262.1	$	239.8	$	221.1	$	190.3	$	111.9
Ratio of earnings to fixed charges and preferred share dividends	2.88		3.91		3.98		3.84		6.06

(1)	For purposes of calculating the ratio of earnings to fixed charges, interest expense, net includes interest expense related to outstanding indebtedness, including $3.7 million for the amortization of debt discount and issuance costs disclosed on the consolidated statement of cash flows.
(2)	Interest within rental expense is estimated to be one-third of rental expense.
(3)	Preferred share dividends represent the pre-tax dollars required to service the $32.9 million of preferred share dividends reflected on the consolidated income statement, including the deemed dividend for the accretion of preferred share issuance costs. See Note 6 and Note 7 of Item 8 for additional information.
n/a	Not applicable as preferred shares issued in October 2016.

EX-21.1

Exhibit 21.1

SUBSIDIARIES OF REGISTRANT

The following is a list of subsidiaries of the Company as of February 3, 2018 omitting subsidiaries which, considered in the aggregate, would not constitute a significant subsidiary.

NAME	WHERE INCORPORATED
Sterling Inc.	Ohio, USA
Signet Service Plans, Inc.	Ohio, USA
Sterling Jewelers Inc.	Delaware, USA
Signet US Holdings Inc.	Delaware, USA
Signet Group Treasury Services Inc.	Delaware, USA
Zale Corporation	Delaware, USA
Zale Delaware, Inc.	Delaware, USA
Zale Canada Co.	Canada
Signet Group Limited	England
Signet UK Finance plc	England
Signet Holdings Limited	England
Signet Trading Limited	England
Signet Bermuda Finance Limited	Bermuda
Signet Global Insurance Services Limited	Bermuda
Signet Bermuda Limited	Bermuda
Signet Malta Finance Limited	Malta
Signet Ireland Finance Limited	Ireland
SJI Ireland Limited	Ireland

EX-23.1

Exhibit 23.1

Consent of Independent Registered Public Accounting Firm

The Board of Directors

Signet Jewelers Limited:

We consent to the incorporation by reference in the registration statements (Nos. 333-159987, 333-153435, 333-09634, 333-134192, 333-12304, 333-153422 and 333-08964) on Forms S-8 and (Nos. 333-195865-18 and 333-214462) on Forms S-3 of Signet Jewelers Limited of our report dated April 2, 2018, 2018, with respect to the consolidated balance sheets of Signet Jewelers Limited and subsidiaries as of February 3, 2018 and January 28, 2017, and the related consolidated income statements, statements of comprehensive income, statements of cash flows, and statements of shareholders’ equity for the 53 week period ended February 3, 2018, and the 52 week periods ended January 28, 2017, and January 30, 2016, and the related notes, and the effectiveness of internal control over financial reporting as of February 3, 2018, which report appears in the February 3, 2018 annual report on Form 10‑K of Signet Jewelers Limited.

/s/ KPMG LLP

Cleveland, Ohio

April 2, 2018

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Virginia C. Drosos, certify that:

1. I have reviewed this Annual Report on Form 10-K of Signet Jewelers Limited (the “Report”);

2. Based on my knowledge, this Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Report;

3. Based on my knowledge, the financial statements, and other financial information included in this Report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this Report;

4. The company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, 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;

(c) Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this Report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this Report based on such evaluation; and

(d) Disclosed in this Report any change in the company’s internal control over financial reporting that occurred during the company’s most recent fiscal quarter (the company’s fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and

5. The company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company’s auditors and the audit committee of the company’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the company’s internal control over financial reporting.

Date: April 2, 2018

By:	/s/ Virginia C. Drosos
Name:	Virginia C. Drosos
Title:	Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Michele L. Santana, certify that:

1. I have reviewed this Annual Report on Form 10-K of Signet Jewelers Limited (the “Report”);

2. Based on my knowledge, this Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Report;

3. Based on my knowledge, the financial statements, and other financial information included in this Report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this Report;

4. The company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, 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;

(c) Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this Report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this Report based on such evaluation; and

(d) Disclosed in this Report any change in the company’s internal control over financial reporting that occurred during the company’s most recent fiscal quarter (the company’s fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and

5. The company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company’s auditors and the audit committee of the company’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the company’s internal control over financial reporting.

Date: April 2, 2018

By:	/s/ Michele L. Santana
Name:	Michele L. Santana
Title:	Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Virginia C. Drosos, as Chief Executive Officer of Signet Jewelers Limited (the “Company”), hereby certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(1) the accompanying Annual Report on Form 10-K for the period ending February 3, 2018, as filed with the US Securities and Exchange Commission (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: April 2, 2018

By:	/s/ Virginia C. Drosos
Name:	Virginia C. Drosos
Title:	Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Michele L. Santana, as Chief Financial Officer of Signet Jewelers Limited (the “Company”), hereby certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(1) the accompanying Annual Report on Form 10-K for the period ending February 3, 2018, as filed with the US Securities and Exchange Commission (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: April 2, 2018

By:	/s/ Michele L. Santana
Name:	Michele L. Santana
Title:	Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)

XML

Document and Entity Information - USD ($)	12 Months Ended
	Feb. 03, 2018	Mar. 28, 2018	Jul. 29, 2017
Document And Entity Information [Abstract]
Document type	10-K
Amendment flag	false
Document period end date	Feb. 03, 2018
Document fiscal year focus	2018
Document fiscal period focus	FY
Trading symbol	SIG
Entity registrant name	SIGNET JEWELERS LTD
Entity Central Index Key	0000832988
Current Fiscal Year End Date	--01-28
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares outstanding		59,005,252
Entity Public Float			$ 2,543,283,372

XML

Consolidated Income Statements - USD ($) shares in Millions, $ in Millions	3 Months Ended												12 Months Ended
	Feb. 03, 2018	Oct. 28, 2017	Jul. 29, 2017	Apr. 29, 2017	Jan. 28, 2017	Oct. 29, 2016	Jul. 30, 2016	Apr. 30, 2016	Jan. 30, 2016	Oct. 31, 2015	Aug. 01, 2015	May 02, 2015	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Income Statement [Abstract]
Sales	$ 2,293.1	$ 1,156.9	$ 1,399.6	$ 1,403.4	$ 2,269.9	$ 1,186.2	$ 1,373.4	$ 1,578.9					$ 6,253.0	$ 6,408.4	$ 6,550.2
Cost of sales													(4,063.0)	(4,047.6)	(4,109.8)
Gross margin	919.8	321.1	457.9	491.2	945.5	350.0	464.9	600.4					2,190.0	2,360.8	2,440.4
Selling, general and administrative expenses													(1,872.2)	(1,880.2)	(1,987.6)
Credit transaction, net													1.3	0.0	0.0
Other operating income, net													260.8	282.6	250.9
Operating income													579.9	763.2	703.7
Interest expense, net													(52.7)	(49.4)	(45.9)
Income before income taxes													527.2	713.8	657.8
Income taxes													(7.9)	(170.6)	(189.9)
Net income	$ 343.0	$ (12.1)	$ 85.2	$ 70.3	$ 287.8	$ 14.8	$ 81.9	$ 146.8					519.3	543.2	467.9
Dividends on redeemable convertible preferred shares													(32.9)	(11.9)	0.0
Net income attributable to common shareholders													$ 486.4	$ 531.3	$ 467.9
Earnings per common share:
Earnings per share: basic (usd per share)	$ 5.70	$ (0.20)	$ 1.34	$ 1.03	$ 4.17	$ 0.20	$ 1.06	$ 1.87					$ 7.72	$ 7.13	$ 5.89
Earnings per share: diluted (usd per share)	5.24	(0.20)	1.33	1.03	3.92	0.20	1.06	1.87					$ 7.44	$ 7.08	$ 5.87
Weighted average common shares outstanding:
Weighted average common shares outstanding: basic (in shares)													63.0	74.5	79.5
Weighted average common shares outstanding: diluted (in shares)													69.8	76.7	79.7
Dividends declared per common share (usd per share)	$ 0.31	$ 0.31	$ 0.31	$ 0.31	$ 0.26	$ 0.26	$ 0.26	$ 0.26	$ 0.22	$ 0.22	$ 0.22	$ 0.22	$ 1.24	$ 1.04	$ 0.88

XML

Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Pre-tax amount
Foreign currency translation adjustments	$ 50.9	$ (25.6)	$ (40.2)
Available-for-sale securities:
Unrealized gain (loss)	0.5	0.0	(0.7)
Cash flow hedges:
Unrealized gain (loss)	3.4	8.8	(17.2)
Reclassification adjustment for losses to net income	(4.6)	(0.7)	4.9
Pension plan:
Actuarial gain (loss)	0.0	(16.9)	13.8
Reclassification adjustment to net income for amortization of actuarial losses	2.8	1.5	3.4
Prior service costs	(0.6)	(0.5)	(0.6)
Reclassification adjustment to net income for amortization of net prior service credits	(1.4)	(1.9)	(2.2)
Net curtailment gain and settlement loss	(3.7)	0.0	0.0
Total other comprehensive (loss) income	47.3	(35.3)	(38.8)
Tax (expense) benefit
Foreign currency translation adjustments	0.0	0.0	0.0
Available-for-sale securities:
Unrealized gain (loss)	(0.2)	0.0	0.3
Cash flow hedges:
Unrealized gain (loss)	(1.6)	(1.9)	5.4
Reclassification adjustment for losses to net income	1.1	0.1	(1.4)
Pension plan:
Actuarial gain (loss)	0.0	3.3	(2.9)
Reclassification adjustment to net income for amortization of actuarial losses	(0.6)	(0.3)	(0.7)
Prior service costs	0.1	0.1	0.1
Reclassification adjustment to net income for amortization of net prior service credits	0.3	0.4	0.5
Net curtailment gain and settlement loss	0.7	0.0	0.0
Total other comprehensive (loss) income	(0.2)	1.7	1.3
After-tax amount
Net income	519.3	543.2	467.9
Foreign currency translation adjustments	50.9	(25.6)	(40.2)
Available-for-sale securities:
Unrealized gain (loss)	0.3	0.0	(0.4)
Cash flow hedges:
Unrealized gain (loss)	1.8	6.9	(11.8)
Reclassification adjustment for losses to net income	(3.5)	(0.6)	3.5
Pension plan:
Actuarial gain (loss)	0.0	(13.6)	10.9
Reclassification adjustment to net income for amortization of actuarial losses	2.2	1.2	2.7
Prior service costs	(0.5)	(0.4)	(0.5)
Reclassification adjustment to net income for amortization of net prior service credits	(1.1)	(1.5)	(1.7)
Net curtailment gain and settlement loss	(3.0)	0.0	0.0
Total other comprehensive (loss) income	47.1	(33.6)	(37.5)
Total comprehensive income	$ 566.4	$ 509.6	$ 430.4

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Consolidated Balance Sheets - USD ($) $ in Millions	Feb. 03, 2018	Jan. 28, 2017
Current assets:
Cash and cash equivalents	$ 225.1	$ 98.7
Accounts receivable, net	692.5	1,858.0
Other receivables	87.2	95.9
Other current assets	158.2	136.3
Income taxes	2.6	4.4
Inventories	2,280.5	2,449.3
Total current assets	3,446.1	4,642.6
Non-current assets:
Property, plant and equipment, net	877.9	822.9
Goodwill	821.7	517.6
Intangible assets, net	481.5	417.0
Other assets	171.2	165.1
Deferred tax assets	1.4	0.7
Retirement benefit asset	39.8	31.9
Total assets	5,839.6	6,597.8
Current liabilities:
Loans and overdrafts	44.0	91.1
Accounts payable	237.0	255.7
Accrued expenses and other current liabilities	448.0	478.2
Deferred revenue	288.6	276.9
Income taxes	19.6	101.8
Total current liabilities	1,037.2	1,203.7
Non-current liabilities:
Long-term debt	688.2	1,317.9
Other liabilities	239.6	213.7
Deferred revenue	668.9	659.0
Deferred tax liabilities	92.3	101.4
Total liabilities	2,726.2	3,495.7
Commitments and contingencies
Series A redeemable convertible preferred shares of $0.01 par value: 500 shares authorized, 0.625 shares outstanding		611.9
Shareholders’ equity:
Common shares of $0.18 par value: authorized 500 shares, 60.5 shares outstanding (2017: 68.3 outstanding)	15.7	15.7
Additional paid-in capital	290.2	280.7
Other reserves	0.4	0.4
Treasury shares at cost: 26.7 shares (2017: 18.9 shares)	(1,942.1)	(1,494.8)
Retained earnings	4,396.2	3,995.9
Accumulated other comprehensive loss	(260.6)	(307.7)
Total shareholders’ equity	2,499.8	2,490.2
Total liabilities, redeemable convertible preferred shares and shareholders’ equity	5,839.6	6,597.8
Series A Redeemable Convertible Preferred Stock
Non-current liabilities:
Series A redeemable convertible preferred shares of $0.01 par value: 500 shares authorized, 0.625 shares outstanding	$ 613.6	$ 611.9

XML

Consolidated Balance Sheets (Parenthetical) - $ / shares	Feb. 03, 2018	Jan. 28, 2017
Common shares, par value (usd per share)	$ 0.18	$ 0.18
Common shares, authorized	500,000,000	500,000,000
Common shares, outstanding	60,500,000	68,300,000
Treasury shares, shares	26,700,000	18,900,000
Series A Redeemable Convertible Preferred Stock
Preferred shares, par value (usd per share)	$ 0.01
Preferred shares, authorized	500,000,000
Preferred shares, outstanding	625,000

XML

Consolidated Statements Of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Cash flows from operating activities:
Net income	$ 519.3	$ 543.2	$ 467.9
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	203.4	188.8	175.3
Amortization of unfavorable leases and contracts	(13.0)	(19.7)	(28.7)
Pension benefit	(3.5)	(1.6)	0.0
Share-based compensation	16.1	8.0	16.4
Deferred taxation	(33.4)	27.7	25.0
Excess tax benefit from exercise of share awards	0.0	(2.4)	(6.9)
Amortization of debt discount and issuance costs	3.7	2.8	3.6
Credit transaction, net	(30.9)	0.0	0.0
Other non-cash movements	2.4	0.4	3.6
Changes in operating assets and liabilities:
Decrease (increase) in accounts receivable	242.1	(102.7)	(189.8)
Proceeds from Sale of Finance Receivables	952.5	0.0	0.0
Decrease (increase) in other receivables and other assets	11.0	(20.4)	(44.1)
(Increase) decrease in other current assets	(17.0)	13.5	(26.5)
Decrease (increase) in inventories	210.9	(9.7)	(46.0)
Decrease in accounts payable	(51.4)	(7.0)	(6.4)
Increase (decrease) in accrued expenses and other liabilities	3.9	(21.8)	51.8
Increase in deferred revenue	10.0	43.6	76.3
(Decrease) increase in income taxes payable	(82.4)	38.9	(25.7)
Pension plan contributions	(3.2)	(3.3)	(2.5)
Net cash provided by operating activities	1,940.5	678.3	443.3
Investing activities
Purchase of property, plant and equipment	(237.4)	(278.0)	(226.5)
Purchase of available-for-sale securities	(2.4)	(10.4)	(6.2)
Proceeds from sale of available-for-sale securities	2.2	10.0	4.0
Acquisition of R2Net Inc., net of cash acquired	(331.8)
Net cash used in investing activities	(569.4)	(278.4)	(228.7)
Financing activities
Dividends paid on common shares	(76.5)	(75.6)	(67.1)
Dividends paid on redeemable convertible preferred shares	(34.7)	0.0	0.0
Proceeds from issuance of common shares	0.3	2.1	5.0
Repurchase of common shares	(460.0)	(1,000.0)	(130.0)
Proceeds from issuance of redeemable convertible preferred shares, net of issuance costs	0.0	611.3	0.0
Net settlement of equity based awards	(2.9)	(4.9)	(8.3)
Excess tax benefit from exercise of share awards	0.0	2.4	6.9
Proceeds from revolving credit facility	814.0	1,270.0	316.0
Repayments of revolving credit facility	(870.0)	(1,214.0)	(316.0)
Payment of debt issuance costs	(1.4)	(2.7)	0.0
Principal payments under capital lease obligations	0.0	(0.2)	(1.0)
Repayments of bank overdrafts	(0.1)	(10.2)	(47.1)
Net cash used in financing activities	(1,253.6)	(438.2)	(266.6)
Cash and cash equivalents at beginning of period	98.7	137.7	193.6
Increase (decrease) in cash and cash equivalents	117.5	(38.3)	(52.0)
Effect of exchange rate changes on cash and cash equivalents	8.9	(0.7)	(3.9)
Cash and cash equivalents at end of period	225.1	98.7	137.7
Non-cash investing activities:
Capital expenditures in accounts payable	7.0	9.2	9.3
Supplemental cash flow information:
Interest paid	50.2	47.1	41.6
Income taxes paid	122.3	104.0	180.1
Term Loan
Financing activities
Proceeds from debt	350.0	0.0	0.0
Repayments of debt	(372.3)	(16.4)	(25.0)
Securitization facility
Financing activities
Proceeds from debt	1,745.9	2,404.1	2,303.9
Repayments of debt	(2,345.9)	(2,404.1)	(2,303.9)
R2Net Inc.
Investing activities
Acquisition of R2Net Inc., net of cash acquired	$ (331.8)	$ 0.0	$ 0.0

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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. 31, 2015	$ 2,810.4	$ 15.7	$ 265.2	$ 0.4	$ (370.0)	$ 3,135.7	$ (236.6)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	467.9	0.0	0.0	0.0	0.0	467.9	0.0
Other comprehensive income (loss)	(37.5)	0.0	0.0	0.0	0.0	0.0	(37.5)
Dividends on common shares	(70.2)	0.0	0.0	0.0	0.0	(70.2)	0.0
Repurchase of common shares	(130.0)	0.0	0.0	0.0	(130.0)	0.0	0.0
Net settlement of equity based awards	(1.3)	0.0	(1.5)	0.0	(1.1)	1.3	0.0
Share options exercised	5.0	0.0	(0.2)	0.0	5.3	(0.1)	0.0
Share-based compensation expense	16.4	0.0	16.4	0.0	0.0	0.0	0.0
Balance at Jan. 30, 2016	3,060.7	15.7	279.9	0.4	(495.8)	3,534.6	(274.1)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	543.2	0.0	0.0	0.0	0.0	543.2	0.0
Other comprehensive income (loss)	(33.6)	0.0	0.0	0.0	0.0	0.0	(33.6)
Dividends on common shares	(75.9)	0.0	0.0	0.0	0.0	(75.9)	0.0
Dividends on redeemable convertible preferred shares	(11.9)					(11.9)
Repurchase of common shares	(1,000.0)	0.0	0.0	0.0	(1,000.0)	0.0	0.0
Net settlement of equity based awards	(2.4)	0.0	(7.2)	0.0	(1.1)	5.9	0.0
Share options exercised	2.1	0.0	0.0	0.0	2.1	0.0	0.0
Share-based compensation expense	8.0	0.0	8.0	0.0	0.0	0.0	0.0
Balance at Jan. 28, 2017	2,490.2	15.7	280.7	0.4	(1,494.8)	3,995.9	(307.7)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	519.3	0.0	0.0	0.0	0.0	519.3	0.0
Other comprehensive income (loss)	47.1	0.0	0.0	0.0	0.0	0.0	47.1
Dividends on common shares	(77.5)	0.0	0.0	0.0	0.0	(77.5)	0.0
Dividends on redeemable convertible preferred shares	(32.9)					(32.9)
Repurchase of common shares	(460.0)	0.0	0.0	0.0	(460.0)	0.0	0.0
Net settlement of equity based awards	(2.8)	0.0	(6.5)	0.0	12.3	(8.6)	0.0
Share options exercised	0.3	0.0	(0.1)	0.0	0.4	0.0	0.0
Share-based compensation expense	16.1	0.0	16.1	0.0	0.0	0.0	0.0
Balance at Feb. 03, 2018	$ 2,499.8	$ 15.7	$ 290.2	$ 0.4	$ (1,942.1)	$ 4,396.2	$ (260.6)

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Organization and summary of significant accoutning policies

12 Months Ended

Feb. 03, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and summary of significant accoutning policies

Organization and summary of significant accounting policies

Signet Jewelers Limited (“Signet” or the “Company”), a holding company incorporated in Bermuda, is the world’s largest retailer of diamond jewelry. The Company operates through its 100% owned subsidiaries with sales primarily in the United States (“US”), United Kingdom (“UK”) and Canada. Signet manages its business as five reportable segments: the Sterling Jewelers division, the Zale division, which consists of the Zale Jewelry and Piercing Pagoda segments, the UK Jewelry division and Other. The “Other” reportable segment consists of all non-reportable segments, including subsidiaries involved in the purchasing and conversion of rough diamonds to polished stones and unallocated corporate administrative functions. See Note 5 for additional discussion of the Company’s segments.

On September 12, 2017, the Company completed the acquisition of R2Net Inc., a Delaware corporation (“R2Net”). See Note 4 for additional information regarding the acquisition.

In October 2017, the Company, through its subsidiary Sterling Jewelers Inc. (“Sterling”), completed the sale of the prime-only quality portion of Sterling’s in-house finance receivable portfolio to Comenity Bank (“Comenity”). See Note 3 for additional information regarding the transaction.

Signet’s sales are seasonal, with the first quarter slightly exceeding 20%of annual sales, the second and third quarters each approximating20%and the fourth quarter accounting for almost 40%of annual sales, with December being by far the most important month of the year. The “Holiday Season” consists of results for the months of November and December. As a result, approximately 45% to 55%of Signet’s annual operating income normally occurs in the fourth quarter, comprised of nearly all of the UK Jewelry and Zale divisions’ annual operating income and about 40% to 45%of the Sterling Jewelers division’s annual operating income.

The Company has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued. There are no material related party transactions. The following accounting policies have been applied consistently in the preparation of the Company’s financial statements.

(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 for the 53 week period endedFebruary 3, 2018 (“Fiscal 2018”), as Signet’s fiscal year ends on the Saturday nearest to January 31. The comparative periods are for the 52 week period endedJanuary 28, 2017 (“Fiscal 2017”) and the 52 week period endedJanuary 30, 2016 (“Fiscal 2016”). Intercompany transactions and balances have been eliminated in consolidation. Certain prior year amounts have been reclassified to conform to the current year presentation.

(b) Use of estimates

The preparation of these consolidated financial statements, in conformity with US GAAP and US Securities and Exchange Commission (“SEC”) regulations, 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 reported period. Actual results could differ from those estimates. Estimates and assumptions are primarily made in relation to the valuation of accounts receivable, inventories, deferred revenue, derivatives, employee benefits, income taxes, contingencies, asset impairments, indefinite-lived intangible assets, as well as depreciation and amortization of long-lived assets.

The reported results of operations are not indicative of results expected in future periods.

(c) Foreign currency translation

The financial position and operating results of certain foreign operations, including the UK Jewelry division and the Canadian operations of the Zale Jewelry segment, are consolidated using the local currency as the functional currency. Assets and liabilities are translated at the rates of exchange on the balance sheet date, and revenues and expenses are translated at the monthly average rates of exchange during the period. Resulting translation gains or losses are included in the accompanying consolidated statements of shareholders’ equity as a component of accumulated other comprehensive income (loss) (“AOCI”). Gains or losses resulting from foreign currency transactions are included within the consolidated income statements, whereas translation adjustments and gains or losses related to intercompany loans of a long-term investment nature are recognized as a component of AOCI.

See Note 9 for additional discussion of the Company’s foreign currency translation.

(d) Revenue recognition

The Company recognizes revenue when there is persuasive evidence of an arrangement, delivery of products has occurred or services have been rendered, the sale price is fixed and determinable, and collectability is reasonably assured. The Company’s revenue streams and their respective accounting treatments are discussed below.

Merchandise sale and repairs

Store sales are recognized when the customer receives and pays for the merchandise at the store with cash, in-house customer finance, private label credit card programs, a third party credit card or a lease purchase option. For online sales shipped to customers, 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. Revenues on the sale of merchandise are 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. Revenues derived from providing replacement merchandise on behalf of insurance organizations are recognized upon receipt of the merchandise by the customer. Revenues on repair of merchandise are recognized when the service is complete and the customer collects the merchandise at the store.

Extended service plans and lifetime warranty agreements (“ESP”)

The Company recognizes revenue related to ESP sales in proportion to when the expected costs will be incurred. The deferral period for ESP sales in each division 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 utilized. A significant change in estimates related to the time period or pattern in which warranty-related costs are expected to be incurred could materially impact revenues. 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 in the consolidated balance sheets.

The Sterling Jewelers division sells ESP, subject to certain conditions, to perform repair work over the life of the product. Revenue from the sale of the lifetime ESP is recognized consistent with the estimated pattern of claim costs expected to be incurred by the Company in connection with performing under the ESP obligations. Based on an evaluation of historical claims data, management currently estimates that substantially all claims will be incurred within17years of the sale of the warranty contract.

In the second quarter of Fiscal 2016, an operational change related to the Sterling Jewelers division’s ESP associated with ring sizing was made to further align Zale and Sterling ESP policies. As a result, revenue from the sale of these lifetime ESP in the Sterling Jewelers division is deferred and recognized over17years for all plans, with approximately57%of revenue recognized within the firsttwoyears for plans sold on or after May 2, 2015 (January 28, 2017: 57%; January 30, 2016: 57%) and 42%of revenue recognized within the first two years for plans sold prior to May 2, 2015 (January 28, 2017: 42%; January 30, 2016: 42%).

The Zale division also sells ESP. Zale Jewelry customers are offered lifetime warranties on certain products that cover sizing and breakage with an option to purchase theft protection for a two-year period. Revenue from the sale of lifetime ESP is deferred and recognized over 10 years, with approximately69%of revenue recognized within the first two years (January 28, 2017: 69%; January 30, 2016: 69%). Revenues related to the optional theft protection are deferred and recognized in proportion to when the expected claims costs will be incurred over the two-year contract period. Zale Jewelry customers are also offered a two-year watch warranty and a one-year warranty that covers breakage. Piercing Pagoda customers are also offered a one-year warranty that covers breakage. Revenue from the two-year watch warranty and one-year breakage warranty is recognized on a straight-line basis over the respective contract terms.

The Sterling Jewelers division also sells a Jewelry Replacement Plan (“JRP”). The JRP is designed to protect customers from damage or defects of purchased merchandise for a period of three years. If the purchased merchandise is defective or becomes damaged under normal use in that time period, the item will be replaced. JRP revenue is deferred and recognized on a straight-line basis over the period of expected claims costs.

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 sale less an estimate of cancellations based on historical experience.

Sale vouchers

Certain promotional offers award sale vouchers to customers who make purchases above a certain value, which grant a fixed discount on a future purchase 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 using the relative-selling-price method. Sale vouchers are not sold on a stand-alone basis. The fair value of the voucher is determined based on the average sales transactions in which the vouchers were issued, when the vouchers are expected to be redeemed and the estimated voucher redemption rate. The fair value allocated to the future purchase is recorded as deferred revenue.

Consignment inventory sales

Sales of consignment inventory are accounted for on a gross sales basis as the Company is the primary obligor providing independent advice, guidance and after-sales service to customers. The products sold from consignment inventory are indistinguishable from other products that are sold to customers and are sold on the same terms. Supplier products are selected at the discretion of the Company. The Company is responsible for determining the selling price, physical security of the products and collections of accounts receivable.

(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 stores inclusive of payroll, inventory shrinkage, store operating and occupancy costs, net bad debts and charges for late payments under the 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 and cost of in-house credit prior to the Company’s outsourcing initiatives and third-party servicing of receivables subsequent to the outsourcing initiative; advertising and promotional costs and other operating expenses not specifically categorized elsewhere in the consolidated income statements.

Compensation and benefits costs included within cost of sales and selling, general and administrative expenses were as follows:

(in millions)	Fiscal 2018		Fiscal 2017		Fiscal 2016
Wages and salaries	$	1,140.3	$	1,183.2	$	1,222.8
Payroll taxes	93.8		96.5		101.1
Employee benefit plans	13.0		19.3		17.5
Share-based compensation	16.1		8.0		16.4
Total compensation and benefits	$	1,263.2	$	1,307.0	$	1,357.8

(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 catalogs 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 $360.5 million in Fiscal 2018 (Fiscal 2017: $380.6 million; Fiscal 2016: $384.2 million).

(h) In-house customer finance programs

Sterling Jewelers division operates customer in-house finance programs that allow customers to finance merchandise purchases from its stores. Finance charges are recognized in accordance with the contractual agreements. Gross interest earned is recorded as other operating income in the consolidated income statements. See Note 11 for additional discussion of the Company’s other operating income. In addition to interest-bearing accounts, a portion of credit sales are made using interest-free financing for one year or less, subject to certain conditions.

Prior to the fourth quarter of Fiscal 2018, the accrual of interest was suspended when accounts became more than 90 days aged on a recency basis. Upon suspension of the accrual of interest, interest income was subsequently recognized to the extent cash payments are received. Accrual of interest was resumed when receivables are removed from the non-accrual status.

As a result of the credit transaction in Note 3, including the processes utilized by the service provider for the Company’s remaining in-house finance receivable portfolio, it is the Company’s policy to suspend the accrual of interest when accounts become more than 120 days past due on a contractual basis.

(i) 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, based on management’s evaluation of all available evidence, both positive and negative, including reversals of deferred tax liabilities, projected future taxable income and results of recent operations.

The Company does not recognize tax benefits related to positions taken on certain tax matters unless the position is more likely than not to be sustained upon examination by tax authorities. At any point in time, various tax years are subject to or are in the process of being audited by various taxing authorities. The Company records a reserve for uncertain tax positions, including interest and penalties. 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.

See Note 10 for additional discussion of the Company’s income taxes.

(j) Cash and cash equivalents

Cash and cash equivalents are comprised of cash on hand, money market deposits and amounts placed with external fund managers with an original maturity of three months or less. Cash and cash equivalents 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.

The following table summarizes the details of the Company’s cash and cash equivalents:

(in millions)	February 3, 2018		January 28, 2017
Cash and cash equivalents held in money markets and other accounts	$	182.6	$	65.6
Cash equivalents from third-party credit card issuers	40.5		31.1
Cash on hand	2.0		2.0
Total cash and cash equivalents	$	225.1	$	98.7

(k) Accounts receivable

Accounts receivable under the customer finance programs are presented net of an allowance for uncollectible amounts. This allowance represents management’s estimate of the expected losses in the accounts receivable portfolio as of the balance sheet date, and is calculated using a model that analyzes factors such as delinquency rates and recovery rates.

Prior to the fourth quarter of Fiscal 2018, the Company calculated the allowance for uncollectible amounts as follows:

• Record an allowance for amounts under 90 days aged on a recency measure of delinquency based on historical loss experience and payment performance information. The recency method measured the delinquency level by the number of days since the last qualifying payment was received, with the qualifying payment increasing with delinquency level.

• Record a 100% allowance for any amount aged more than 90 days on a recency measure of delinquency and any amount associated with an account the owner of which has filed for bankruptcy.

Signet’s recency method of aging had been in place and unchanged since the inception of the in-house consumer financing program. The delinquency level was measured by the number of days since the last qualifying payment was received, with the qualifying payment increasing with delinquency level. The minimum payment does not decline as the balance declines.

In the fourth quarter of Fiscal 2018, the Company began measuring delinquency under the contractual basis which aligns with the processes and collection strategies utilized by the Company’s third party credit service provider for the remaining in-house finance receivable portfolio beginning in October 2017. Under this measure of delinquency, credit card accounts are considered delinquent if the minimum payment is not received by the specified due date. The aging method is based on the number of completed billing cycles during which the customer has failed to make a minimum payment. Management utilizes the delinquency rates identified within the portfolio when calculating the overall allowance for the portfolio.

The overall allowance continues to be based on the Company’s historical loss experience and payment performance information for accounts with similar credit quality characteristics as the remaining portfolio since the inception of the in-house consumer financing program, which was operated under the Company’s aging and collection methodologies in place prior to October 2017. As a result of the credit transaction disclosed in Note 3, the aging and collection methodologies have been revised to align with contractual method, which may result in different customer payment behaviors. A 100% allowance is made for accounts associated with bankrupt or deceased cardholders, as well as for accounts more than 120 days past due on the contractual basis. The Company’s policy for charging off uncollectible receivables is 180 days.

See Note 12 for additional discussion of the Company’s accounts receivables.

(l) Inventories

Inventories are primarily held for resale and are valued at the lower of cost or net realizable value. Cost is determined using weighted-average cost for all inventories except for inventories held in the Company’s diamond sourcing operations, where cost is determined using specific identification. Cost includes charges directly related to bringing inventory to its present location and condition. Such charges would include warehousing, security, distribution and certain buying costs. Net realizable value is defined as estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Inventory reserves are recorded for obsolete, slow moving or defective items and shrinkage. Inventory reserves for obsolete, slow moving or defective items are calculated as the difference between the cost of inventory and its estimated market value based on targeted inventory turn rates, future demand, management strategy and market conditions. Due to the inventory being primarily comprised of precious stones and metals including gold, the age of the inventory has a limited impact on the estimated market value. Inventory reserves for shrinkage are 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.

See Note 13 for additional discussion of the Company’s inventories.

(m) 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, contributions are matched against the costs of promotions. Vendor contributions received as general contributions and not related to specific promotional events are recognized as a reduction of inventory costs.

(n) Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation, amortization and impairment charges. 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 and software	Ranging from 3 – 5 years

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 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 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, based on the Company’s internal business plans. 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. The Company utilizes historical experience, internal business plans and an appropriate discount rate to estimate the fair value. Property and equipment at stores planned for closure are depreciated over a revised estimate of their useful lives.

See Note 14 for additional discussion of the Company’s property, plant and equipment.

(o) Goodwill and intangibles

In a business combination, the Company estimates and records the fair value of identifiable intangible assets and liabilities acquired. The fair value of these intangible assets and liabilities is estimated based on management’s assessment, including determination of appropriate valuation technique and consideration of any third party appraisals, when necessary. Significant estimates in valuing intangible assets and liabilities acquired include, but are not limited to, future expected cash flows associated with the acquired asset or liability, expected life and discount rates. The excess purchase price over the estimated fair values of the assets acquired and liabilities assumed is recognized as goodwill. Goodwill is recorded by the Company’s reporting units based on the acquisitions made by each. Goodwill is evaluated for impairment annually and more frequently if indicators of impairment arise. In evaluating goodwill for impairment, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value (including goodwill). If the Company concludes that it is not more likely than not that the fair value of a reporting unit is less than its carrying value, then no further testing is required. However, if the Company concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then the two-step goodwill impairment test is performed to identify a potential goodwill impairment and measure the amount of impairment to be recognized, if any. The two-step impairment test involves estimating the fair value of all assets and liabilities of the reporting unit, including the implied fair value of goodwill, through either estimated discounted future cash flows or market-based methodologies.

The annual testing date for goodwill allocated to the Sterling Jewelers reporting unit is the last day of the fourth quarter. The annual testing date for goodwill allocated to the reporting units associated with the Zale division and the Other reporting unit is May 31. There have been no goodwill impairment charges recorded during the fiscal periods presented in the consolidated financial statements as financial results for the reporting units have met or exceeded financial projections developed at the time of the acquisitions. If future economic conditions are different than those projected by management, future impairment charges may be required.

Intangible assets with definite lives are amortized and reviewed for impairment whenever events or circumstances indicate that the carrying amount of the asset may not be recoverable. If the estimated undiscounted future cash flows related to the asset are less than the carrying amount, the Company recognizes an impairment charge equal to the difference between the carrying value and the estimated fair value, usually determined by the estimated discounted future cash flows of the asset.

Intangible assets with indefinite lives are reviewed for impairment each year in the second quarter and may be reviewed more frequently if certain events occur or circumstances change. The Company first performs a qualitative assessment to determine whether it is more likely than not that the indefinite-lived intangible asset is impaired. If the Company determines that it is more likely than not that the fair value of the asset is less than its carrying amount, the Company estimates the fair value, usually determined by the estimated discounted future cash flows of the asset, compares that value with its carrying amount and records an impairment charge, if any. If future economic conditions are different than those projected by management, future impairment charges may be required.

See Note 15 for additional discussion of the Company’s goodwill and intangibles.

(p) Derivatives and hedge accounting

The Company 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 net income or other comprehensive income (“OCI”), depending on whether the derivative qualifies as an effective hedge.

If a derivative instrument meets certain criteria, it may be designated as a cash flow hedge on the date it is entered into. For cash flow hedge transactions, the effective portion of the changes in fair value of the derivative instrument is recognized directly in equity as a component of AOCI 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 AOCI should be immediately recognized in net income. Cash flows from derivative contracts are included in net cash provided by operating activities.

See Note 18 for additional discussion of the Company’s derivatives and hedge activities.

(q) 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 consolidated income statements.

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 projected benefit obligation measured at the balance sheet date. Gains or losses and prior service costs or credits that arise and are not included as components of net periodic pension cost are recognized, net of tax, in OCI.

Signet also operates a defined contribution plan in the UK and a defined contribution 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 consolidated income statements as incurred.

See Note 20 for additional discussion of the Company’s employee benefits.

(r) Borrowing costs

Borrowings include interest-bearing bank loans, accounts receivable securitization program and bank overdrafts. Borrowing costs are capitalized and amortized into interest expense over the contractual term of the related loan.

See Note 21 for additional discussion of the Company’s borrowing costs.

(s) 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 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 and the binomial valuation model for awards granted under the Share Saving Plans. 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.

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

See Note 25 for additional discussion of the Company’s share-based compensation plans.

(t) 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.

See Note 26 for additional discussion of the Company’s contingencies.

(u) Leases

Signet’s operating leases generally include retail store locations. Certain operating leases include predetermined rent increases, which 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, such as contingent rentals, taxes and common area maintenance, 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. In addition, 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.

See Note 26 for additional discussion of the Company’s leases.

(v) Dividends

Dividends on common shares are reflected as a reduction of retained earnings in the period in which they are formally declared by the Board of Directors (the “Board”). In addition, the cumulative dividends on preferred shares, whether or not declared, are reflected as a reduction of retained earnings.

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New Accounting Pronouncements

12 Months Ended

Feb. 03, 2018

Accounting Policies [Abstract]

New accounting pronouncements

New accounting pronouncements

New accounting pronouncements adopted during the period

Inventory

In July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory.” The new guidance states that inventory will be measured at the lower of cost and net realizable value. The ASU defines net realizable value as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The adoption of this guidance in the first quarter of Fiscal 2018 did not have a material impact on the Company’s financial position or results of operations.

Share-based compensation

In March 2016, the FASB issued ASU No. 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” The new guidance simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The Company adopted all aspects of this guidance prospectively in the first quarter of Fiscal 2018 with a policy election to continue to estimate expected forfeitures in determining the amount of share-based compensation expense to be recognized. The adoption of this guidance did not have a material impact on the Company’s financial position or results of operations. See Note 25 for additional information regarding the impact on the Company’s results of operations in the first quarter of Fiscal 2018.

New accounting pronouncements to be adopted in future periods

Credit losses

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The new guidance requires entities to measure and recognize expected credit losses for financial assets measured at amortized cost basis. The estimate of expected credit losses should consider historical information, current information, and reasonable and supportable forecasts of expected losses over the remaining contractual life that affect collectability. ASU No. 2016-13 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2019, with early adoption permitted. Signet currently expects to adopt this guidance when effective, and continues to assess the impact the adoption of this guidance will have on the Company’s financial position or results of operations.

Revenue recognition

In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU No. 2014-09 provides alternative methods of retrospective adoption. The FASB has issued several updates to the standard that i) defer the original effective date; ii) clarify the application of principal versus agent guidance; iii) clarify the guidance on inconsequential and perfunctory promises and licensing; and iv) clarify the guidance on the de-recognition of non-financial assets. ASU 2014‑09 and the related updates are effective for fiscal years beginning after December 15, 2017.

Signet adopted ASU 2014‑09 and related updates effective February 4, 2018 using the modified retrospective approach applied only to contracts not completed as of the date of adoption with no restatement of prior periods and by recognizing the cumulative effect of initially applying the new standard as an adjustment to the opening balance of equity. As a result of the Company’s evaluation of existing contracts with customers, the Company has identified that the new standard will require the Company to adjust its presentation related to customer trade-ins, accounting for returns reserves and treatment of the amortization of certain bonus and profit-sharing arrangements related to third party credit card programs. After the adoption of ASU 2014-09, the fair value of customer trade-ins will be considered non-cash consideration when determining the transaction price, and therefore classified as revenue rather than its previous classification as a reduction to cost of goods sold. Also, upon adoption of ASU 2014-09, the Company will record its current sales return reserve within separate refund liability and asset for recovery accounts. Further, subsequent to the adoption of the new accounting guidance, the Company anticipates that the amortization of certain signing bonuses and receipt of funds in connection with economic profit sharing arrangements will be recognized as a component of sales rather than as an offset to selling, general and administrative expense. The Company anticipates that the adoption will result in incremental revenue and incremental costs of goods sold and selling general and administrative expense due to these reclassifications.  We consider the impact of these adjustments immaterial to the overall consolidated financial statements.

Financial instruments

In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” The new guidance primarily impacts accounting for equity investments and financial liabilities under the fair value option, as well as, the presentation and disclosure requirements for financial instruments. Under the new guidance, equity investments will generally be measured at fair value, with subsequent changes in fair value recognized in net income. ASU No. 2016-01 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Signet plans to adopt this guidance in the first quarter of our fiscal year ending February 2, 2019. Signet does not expect the adoption of this guidance to have a material impact on the Company’s financial position or results of operations.

Leases

In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” The new guidance primarily impacts lessee accounting by requiring the recognition of a right-of-use asset and a corresponding lease liability on the balance sheet for long-term lease agreements. The lease liability will be equal to the present value of all reasonably certain lease payments. The right-of-use asset will be based on the liability, subject to adjustment for initial direct costs. Lease agreements that are 12 months or less are permitted to be excluded from the balance sheet. In general, leases will be amortized on a straight-line basis with the exception of finance lease agreements. ASU No. 2016-02 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018, which is effective for the first quarter of our fiscal year ending February 1, 2020. Signet is currently assessing the impact that adopting this guidance will have on the Company’s financial position or results of operations.

Liabilities

In March 2016, the FASB issued ASU No. 2016-04, “Liabilities - Extinguishments of Liabilities (Subtopic 405-20).” The new guidance addresses diversity in practice related to the derecognition of a prepaid stored-value product liability. Liabilities related to the sale of prepaid stored-value products within the scope of this update are financial liabilities. ASU No. 2016-04 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted. Signet plans to adopt this guidance in the first quarter of our fiscal year ending February 2, 2019. Signet does not expect the adoption of this guidance to have a material impact on the Company’s financial position or results of operations.

Intangibles

In January 2017, the FASB issued ASU No. 2017-04, “Intangibles - Goodwill and Other: Simplifying the Test for Goodwill Impairment.” The new guidance requires a single-step quantitative test to identify and measure goodwill impairment based on the excess of a reporting unit's carrying amount over its fair value. A qualitative assessment may still be completed first for an entity to determine if a quantitative impairment test is necessary. ASU No. 2017-04 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2019, with early adoption permitted. Signet plans to adopt this guidance in the first quarter of our fiscal year ending February 2, 2019. Signet does not expect the adoption of this guidance to have a material impact on the Company’s financial position or results of operations.

Retirement Benefits

In March 2017, the FASB issued ASU No. 2017-07, “Compensation - Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” The new guidance requires entities to present the service cost component of the net periodic pension cost in the same income statement line item as other employee compensation costs arising from services rendered during the period. Entities will present the other components of net benefit cost separately from the service cost component and outside of operating profit within the income statement. In addition, only the service cost component will be eligible for capitalization in assets. ASU No. 2017-07 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Signet plans to adopt this guidance in the first quarter of our fiscal year ending February 2, 2019. Signet does not expect the adoption of this guidance to have a material impact on the Company’s financial position or results of operations.

Derivatives and Hedging

In August 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” The new guidance expands the types of risk management strategies eligible for hedge accounting, refines the documentation and effectiveness assessment requirements and modifies the presentation and disclosure requirements for hedge accounting activities. ASU No. 2017-12 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018, with early adoption permitted. Signet is currently assessing the timing of adoption and the impact this guidance will have on the Company’s financial position or results of operations.

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Acquisitions

12 Months Ended

Feb. 03, 2018

Business Combinations [Abstract]

Acquisitions

Acquisitions

On September 12, 2017, the Company acquired the outstanding shares of R2Net, the owner of online jewelry retailer JamesAllen.com and Segoma Imaging Technologies. The acquisition rapidly enhanced the Company’s digital capabilities and accelerated its OmniChannel strategy, while adding a millennial-focused online retail brand to the Company’s portfolio. The Company paid $331.7 million, net of acquired cash of $47.3 million, for R2Net. The total consideration paid was funded with a $350.0 million bridge loan. See Note 21 for additional information regarding the bridge loan.

The transaction was accounted for as a business combination during the third quarter of Fiscal 2018 with R2Net becoming a wholly-owned consolidated subsidiary of Signet. Prior to closing the acquisition, the Company incurred approximately $8.6 million of acquisition-related costs for professional services in Fiscal 2018. Acquisition-related costs were recorded as selling, general and administrative expenses in the consolidated income statements. The results of R2Net subsequent to the acquisition date are reported as a component of the results of the Sterling Jewelers division. See Note 5 for segment information. Pro forma results of operations have not been presented, as the impact on the Company’s consolidated financial results was not material.

Under the acquisition method of accounting, the identifiable assets acquired and liabilities assumed are recorded at their estimated fair values on the acquisition date, with the remaining unallocated net purchase price recorded as goodwill. The following table summarizes the preliminary fair values identified for the assets acquired and liabilities assumed in the R2Net acquisition as of September 12, 2017:

(in millions)	Initial amounts
Cash and cash equivalents	$	47.3
Inventories	12.1
Other current assets	9.7
Property, plant and equipment	3.5
Intangible assets:
Trade name	70.6
Current liabilities	(42.4		)
Deferred tax liabilities	(23.5		)
Fair value of net assets acquired	77.3
Goodwill(1)	301.7
Total consideration transferred	$	379.0

⁽¹⁾  The amount of goodwill generated will be adjusted for any additional assets or liabilities identified by the Company or for any adjustments to the preliminary fair values identified for the assets acquired and liabilities assumed in the R2Net acquisition reflected above.

As of February 3, 2018, the Company is in the process of finalizing the net assets acquired in the acquisition, most notably, the valuation of intangible assets, including technology-related assets and income taxes. The estimates and assumptions utilized in the preliminary valuation are subject to change within the measurement period as additional information is obtained. The Company expects to finalize the valuation within one year from the date of acquisition. The goodwill generated from the acquisition is primarily attributable to expected synergies and will not be deductible for tax purposes.

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Segment Information

12 Months Ended

Feb. 03, 2018

Segment Reporting [Abstract]

Segment information

Segment information

Financial information for each of Signet’s reportable segments is presented in the tables below. Signet’s chief operating decision maker utilizes sales and operating income, after the elimination of any inter-segment transactions, to determine resource allocations and performance assessment measures. Signet’s sales are derived from the retailing of jewelry, watches, other products and services as generated through the management of its five reportable segments: the Sterling Jewelers division, the Zale division, which consists of the Zale Jewelry and Piercing Pagoda segments, the UK Jewelry division and Other.

The Sterling Jewelers division operates in all 50 US states. Its stores operate nationally in malls and off-mall locations principally as Kay (Kay Jewelers and Kay Jewelers Outlet) and Jared (Jared The Galleria Of Jewelry and Jared Vault). The division also operates a variety of mall-based regional brands and the JamesAllen.com website, which was acquired in the R2Net acquisition. The results for the Sterling Jewelers division include R2Net results for the period since September 12, 2017, the date of acquisition. See Note 4 for additional information.

The Zale division operates jewelry stores (Zale Jewelry) and kiosks (Piercing Pagoda), located primarily in shopping malls throughout the US and Canada. Zale Jewelry includes the US store brand Zales (Zales Jewelers and Zales Outlet), which operates in all 50 US states, and the Canadian store brand Peoples Jewellers, which operates in nine provinces. The division also operates regional brands Gordon’s Jewelers and Mappins. Piercing Pagoda operates through mall-based kiosks.

The UK Jewelry division operates stores in the UK, Republic of Ireland and Channel Islands. Its stores operate in shopping malls and off-mall locations (i.e. high street) principally as H.Samuel and Ernest Jones.

The Other reportable segment consists of all non-reportable segments, including subsidiaries involved in the purchasing and conversion of rough diamonds to polished stones, that are below the quantifiable threshold for separate disclosure as a reportable segment and unallocated corporate administrative functions.

During the first quarter of Fiscal 2019, the Company realigned its organizational structure. The new structure will allow for further integration of operational and product development processes and support growth strategies. In accordance with this organizational change, beginning with quarterly reporting for the 13 weeks ended May 5, 2018, the Company will report three reportable segments as follows: North America, International, and Other.

(in millions)	Fiscal 2018			Fiscal 2017			Fiscal 2016
Sales:
Sterling Jewelers	$	3,820.5		$	3,930.4		$	3,988.7
Zale Jewelry(1)	1,516.2			1,549.7			1,568.2
Piercing Pagoda	278.5			263.1			243.2
UK Jewelry	616.7			647.1			737.6
Other	21.1			18.1			12.5
Total sales	$	6,253.0		$	6,408.4		$	6,550.2
Operating income (loss):
Sterling Jewelers(2)	$	576.0		$	715.8		$	718.6
Zale Jewelry	66.7			62.2			44.3
Piercing Pagoda	13.4			11.2			7.8
UK Jewelry	33.1			45.6			61.5
Other(3)	(109.3		)	(71.6		)	(128.5		)
Total operating income	$	579.9		$	763.2		$	703.7
Depreciation and amortization:
Sterling Jewelers	$	121.8		$	112.7		$	106.2
Zale Jewelry	55.3			49.1			44.8
Piercing Pagoda	6.4			4.6			3.3
UK Jewelry	19.1			21.6			20.1
Other	0.8			0.8			0.9
Total depreciation and amortization	$	203.4		$	188.8		$	175.3
Capital additions:
Sterling Jewelers	$	134.8		$	154.5		$	141.6
Zale Jewelry	76.3			85.0			47.7
Piercing Pagoda	8.6			12.7			10.2
UK Jewelry	17.6			25.7			26.4
Other	0.1			0.1			0.6
Total capital additions	$	237.4		$	278.0		$	226.5

⁽¹⁾  Includes sales of $235.1 million, $234.6 million and $248.7 million generated by Canadian operations in Fiscal 2018, Fiscal 2017 and Fiscal 2016, respectively.

⁽²⁾  For Fiscal 2018, amount includes $20.7 million gain related to the reversal of the allowance for credit losses for the in-house receivables sold, as well as the $10.2 million gain upon recognition of beneficial interest in connection with the sale of the prime portion of in-house receivables. See Note 3 for additional information.

⁽³⁾  For Fiscal 2018, Other includes $29.6 million of transaction costs related to the credit transaction, $8.6 million of R2Net acquisition costs, and $3.4 million of CEO transition costs. See Note 3 and Note 4 for additional information regarding credit transaction and acquisition of R2Net, respectively. For Fiscal 2017, Other includes $28.4 million of integration costs for consulting expenses associated with IT implementations, severance related to organizational changes and expenses associated with the settlement of miscellaneous legal matters pending as of the date of the Zale acquisition. For Fiscal 2016, Other includes $78.9 million of transaction and integration costs primarily attributable to the impact of the appraisal rights legal settlement discussed in Note 26 and expenses associated with legal, tax, accounting, IT implementations and consulting services, as well as severance costs.

(in millions)	February 3, 2018		January 28, 2017
Total assets:
Sterling Jewelers	$	3,279.4	$	4,015.4
Zale Jewelry	1,879.4		1,940.7
Piercing Pagoda	150.2		141.6
UK Jewelry	420.3		372.6
Other	110.3		127.5
Total assets	$	5,839.6	$	6,597.8
Total long-lived assets:
Sterling Jewelers	$	956.3	$	567.3
Zale Jewelry	1,075.6		1,050.1
Piercing Pagoda	63.6		61.4
UK Jewelry	78.3		70.7
Other	7.3		8.0
Total long-lived assets	$	2,181.1	$	1,757.5
Total liabilities:
Sterling Jewelers	$	1,482.4	$	2,061.4
Zale Jewelry	439.9		524.3
Piercing Pagoda	28.8		28.2
UK Jewelry	98.9		110.6
Other	676.2		771.2
Total liabilities	$	2,726.2	$	3,495.7

(in millions)	Fiscal 2018		Fiscal 2017		Fiscal 2016
Sales by product:
Diamonds and diamond jewelry	$	3,742.8	$	3,853.7	$	3,918.1
Gold, silver jewelry, other products and services	2,067.2		2,090.0		2,116.4
Watches	443.0		464.7		515.7
Total sales	$	6,253.0	$	6,408.4	$	6,550.2

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Redeemable Preferred Shares

12 Months Ended

Feb. 03, 2018

Temporary Equity Disclosure [Abstract]

Redeemable Preferred Shares

Redeemable preferred shares

On October 5, 2016, the Company issued 625,000 preferred shares to Green Equity Investors VI, L.P., Green Equity Investors Side VI, L.P., LGP Associates VI-A LLC and LGP Associates VI-B LLC, all affiliates of Leonard Green & Partners, L.P., (together, the “Investors”) for an aggregate purchase price of $625.0 million, or $1,000 per share (the “Stated Value”) pursuant to the investment agreement dated August 24, 2016. The Company's preferred shares are classified as temporary equity within the consolidated balance sheet.

In connection with the issuance of the preferred shares, the Company incurred direct and incremental expenses of $13.7 million, including financial advisory fees, closing costs, legal expenses and other offering-related expenses. These direct and incremental expenses originally reduced the preferred shares carrying value, and are accreted through retained earnings as a deemed dividend from the date of issuance through the first possible known redemption date, November 2024. Accumulated accretion relating to these fees of $2.3 million was recorded in the consolidated balance sheet as of February 3, 2018 (January 28, 2017: $0.6 million).

Dividend rights: The preferred shares rank senior to the Company’s common shares, with respect to dividend rights and rights on the distribution of assets on any voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Company. The liquidation preference for preferred shares is equal to the greater of (a) the Stated Value per share, plus all accrued but unpaid dividends and (b) the consideration holders would have received if preferred shares were converted into common shares immediately prior to the liquidation. Preferred shareholders are entitled to a cumulative dividend at the rate of 5% per annum, payable quarterly in arrears, commencing on February 15, 2017, either in cash or by increasing the Stated Value at the option of the Company. In addition, preferred shareholders were entitled to receive dividends or distributions declared or paid on common shares on an as-converted basis, other than the Company’s regularly declared quarterly cash dividends not in excess of 130% of the arithmetic average of the regular, quarterly cash dividends per common share, if any, declared by the Company during the preceding four calendar quarters.

On November 2, 2016, the Board of Directors approved certain changes to the rights of the preferred shareholders, including the following: (a) elimination of the right of preferred shareholders to receive dividends or other distributions declared on the Company’s common shares and inclusion of adjustments to the conversion rate in the event of any dividend, distribution, spin-off or certain other events or transactions in respect of the common shares; and (b) addition of a requirement for approval by the holders of the majority of the issued preferred shares for the declaration or payment by the Company of any dividends or other distributions on the common shares other than (i) regularly declared quarterly cash dividends paid on the issued common shares in any calendar quarter in an amount per share that is not more than 130% of the arithmetic average of the regular, quarterly cash dividends per common share, if any, declared by the Company during the preceding four calendar quarters for such quarter and (ii) any dividends or other distributions which are paid or distributed at the same time on the common shares and the preferred shares, provided that the amount paid or distributed to the preferred shares is based on the number of common shares into which such preferred shares could be converted on the applicable record date for such dividends or other distributions.

Conversion features:Preferred shares are convertible at the option of the holders at any time into common shares at the then applicable conversion rate. The conversion rate is subject to certain anti-dilution and other adjustments, including stock split / reverse stock split transactions, regular dividends declared on common shares, share repurchases (excluding amounts through open market transactions or accelerated share repurchases) and issuances of common shares or other securities convertible into common shares. The initial issuance did not include a beneficial conversion feature as the conversion price used to set the conversion ratio at the time of issuance was greater than the Company’s common stock price.

At any time on or after October 5, 2018, all or a portion of outstanding preferred shares are convertible at the option of the Company if the closing price of common shares exceeds 175% of the then applicable conversion price for at least 20 consecutive trading days.

The following table presents certain conversion measures as of February 3, 2018 and January 28, 2017:

(in millions, except conversion rate and conversion price)	February 3, 2018		January 28, 2017
Conversion rate	10.9409		10.6529
Conversion price	$	91.4002	$	93.8712
Potential impact of preferred shares if-converted to common shares	6.8		6.7
Liquidation preference	$	632.8	$	636.3

Redemption rights: At any time after November 15, 2024, the Company will have the right to redeem any or all, and the holders of the preferred shares will have the right to require the Company to repurchase any or all, of the preferred shares for cash at a price equal to the Stated Value plus all accrued but unpaid dividends. Upon certain change of control or delisting events involving the Company, preferred shareholders can require the Company to repurchase, subject to certain exceptions, all or any portion of its preferred shares at (a) an amount in cash equal to 101% of the Stated Value plus all accrued but unpaid dividends or (b) the consideration the holders would have received if they had converted their preferred shares into common shares immediately prior to the change of control event.

Voting rights: Preferred shareholders are entitled to vote with the holders of common shares on an as-converted basis. Holders of preferred shares are entitled to a separate class vote with respect to certain designee(s) for election to the Company’s Board of Directors, amendments to the Company’s organizational documents that have an adverse effect on the preferred shareholders and issuances by the Company of securities that are senior to, or equal in priority with, the preferred shares.

Registration rights:  Preferred shareholders have certain customary registration rights with respect to the preferred shares and the shares of common shares into which they are converted, pursuant to the terms of a registration rights agreement.

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Credit transaction, net

12 Months Ended

Feb. 03, 2018

Receivables [Abstract]

Credit transaction, net

Credit transaction, net

In October 2017, Signet, through its subsidiary Sterling, completed the sale of the prime-only credit quality portion of Sterling’s in-house finance receivable portfolio to Comenity. The following events summarize the credit transaction:

Receivables reclassification: In the second quarter of Fiscal 2018, certain in-house finance receivables that met the criteria for sale to Comenity were reclassified from "held for investment" to "held for sale." Accordingly, the receivables were recorded at the lower of cost (par) or fair value, resulting in the reversal of the related allowance for credit losses of $20.7 million. This reversal was recorded in credit transaction, net in the consolidated income statement during the second quarter of Fiscal 2018.

Proceeds received: In October 2017, the Company received $952.5 million in cash consideration reflecting the par value of the receivables sold. In addition, the Company recognized a beneficial interest asset of $10.2 million representing the present value of the cash flows the Company expects to receive under the economic profit sharing agreement related to the receivables sold. The gain upon recognition of the beneficial interest asset was recorded in credit transaction, net in the consolidated income statement during the third quarter of Fiscal 2018.

Expenses: During Fiscal 2018, the Company incurred $29.6 million of transaction-related costs. These costs were recorded in credit transaction, net in the consolidated income statement during Fiscal 2018.

Asset-backed securitization facility termination: In October 2017, the Company terminated the asset-backed securitization facility in order to transfer the receivables free and clear. The asset-backed securitization facility had a principal balance outstanding of $600.0 million at the time of termination. The payoff was funded through the proceeds received from the par value of receivables sold. See Note 21 for additional information regarding the asset-backed securitization facility.

Program agreement: Comenity provides credit to prime-only credit quality customers with an initial term of seven years and, unless terminated by either party, additional renewal terms of two years. Under the Program Agreement, Comenity established a program to issue Sterling credit cards to be serviced, marketed and promoted in accordance with the terms of the agreement. Subject to limited exceptions, Comenity is the exclusive issuer of private label credit cards or an installment or other closed end loan product in the United States bearing specified Company trademarks, including “Kay”, “Jared” and specified regional brands, but excluding “Zale”, during the term of the agreement. The pre-existing arrangement with Comenity for the issuing of Zale credit cards was unaffected by the execution of the Program Agreement. Upon expiration or termination by either party of the Program Agreement, Sterling retains the option to purchase, or arrange the purchase by a third party of, the program assets from Comenity on terms that are no more onerous to Sterling than those applicable to Comenity under the Purchase Agreement, or in the case of a purchase by a third party, on customary terms. Additionally, the Company received a signing bonus, which may be repayable under certain conditions if the Program Agreement is terminated, and a right to receive future payments related to the performance of the credit program under an economic profit sharing agreement. The Program Agreement contains customary representations, warranties and covenants.

Additionally, Signet and Genesis Financial Solutions (“Genesis”) entered into a five-year servicing agreement in October 2017, under which Genesis will provide credit servicing functions for Signet’s existing non-prime accounts receivable, as well as future non-prime account originations.

During March 2018, the Company announced that it entered a definitive agreement with CarVal Investors (“CarVal”) to sell all eligible non-prime in-house accounts receivable. This agreement, in conjunction with the previously executed prime credit transaction with Comenity and the outsourcing of the servicing of the non-prime credit program to Genesis, will complete Signet’s transition to an outsourced credit structure. The sale is expected to close during the second quarter of Fiscal 2019 subject to certain closing conditions. In addition, for a five-year term, Signet will remain the issuer of non-prime credit with investment funds managed by CarVal Investors purchasing forward receivables at a discount rate determined in accordance with the agreement. Servicing of the non-prime receivables, including operational interfaces and customer servicing, will continue to be provided by Genesis.

During the first quarter of Fiscal 2019, the Company will reclassify its existing in-house finance receivables from held for investment to held for sale. The Company expects to recognize a loss of approximately $140.0 million upon reclassification as held for sale receivables are required to be valued at the lower of cost (par) or fair value, which incorporates an expectation of future losses. As of February 3, 2018, the Company’s non-prime accounts receivable are presented net of an allowance for credit losses, which represents management’s estimate of expected losses incurred in the accounts receivable portfolio as of the balance sheet date, as required under US GAAP (Topic 310 of the FASB Accounting Standards Codification). The transaction is expected to close in the second quarter of Signet's Fiscal 2019 subject to certain closing conditions.

Accounts receivable, net

In October 2017, the Company completed the sale of the prime-only credit quality portion of the Sterling Jewelers customer in-house finance receivable portfolio. The receivables sold, which were classified as "held for sale" as of the second quarter of Fiscal 2018, are no longer reported within the consolidated balance sheet. See Note 3 for additional information regarding the sale of these receivables. 

Signet’s accounts receivable primarily consist of US customer in-house financing receivables. The in-house finance receivable portfolio consists of a population that is of similar characteristics and is evaluated collectively for impairment.

(in millions)	February 3, 2018		January 28, 2017
Accounts receivable by portfolio segment, net:
Sterling Jewelers customer in-house finance receivables	$	649.4	$	1,813.3
Zale customer in-house finance receivables	33.5		33.4
Other accounts receivable	9.6		11.3
Total accounts receivable, net	$	692.5	$	1,858.0

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.

During the third quarter of Fiscal 2016, Signet implemented a program to provide in-house credit to customers in the Zale division’s US locations. The allowance for credit losses associated with Zale customer in-house finance receivables was immaterial as of February 3, 2018 and January 28, 2017. Effective October 20, 2017, the Zale customer in-house financing programs are being underwritten and serviced by a third party for newly originated balances after the effective date.

Other accounts receivable is comprised primarily of accounts receivable relating to the insurance loss replacement business in the UK Jewelry division of $9.3 million (January 28, 2017: $11.0 million).

Sterling Jewelers customer in-house finance receivables

The allowance for credit losses associated with the portion of Sterling Jewelers customer in-house finance receivables sold in October 2017 was reversed during the second quarter of Fiscal 2018. The allowance for credit losses on Sterling Jewelers remaining customer in-house finance receivables is shown below:

(in millions)	Fiscal 2018			Fiscal 2017			Fiscal 2016
Beginning balance:	$	(138.7	)	$	(130.0	)	$	(113.1	)
Charge-offs, net	221.2			203.4			173.6
Recoveries	34.3			35.1			35.3
Provision	(251.0		)	(247.2		)	(225.8		)
Reversal of allowance on receivables sold	20.7			—			—
Ending balance	(113.5		)	(138.7		)	(130.0		)
Ending receivable balance evaluated for impairment	762.9			1,952.0			1,855.9
Sterling Jewelers customer in-house finance receivables, net	649.4			1,813.3			1,725.9

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

As a result of the sale of the prime-only credit portion of the Sterling Jewelers customer in-house finance receivable portfolio and the outsourcing of the credit servicing on the remaining in-house finance receivable portfolio disclosed in Note 3, the Company revised its methodology for measuring delinquency to be based on the contractual basis. The credit quality indicator and age analysis of Sterling Jewelers customer in-house finance receivables are shown below under the contractual basis:

	February 3, 2018
(in millions)	Gross		Valuation allowance
Performing (accrual status):
0 - 120 days past due	$	703.4	$	(54.0	)
121 or more days past due	59.5		(59.5		)
	$	762.9	$	(113.5	)
Valuation allowance as a % of ending receivable balance			14.9		%

Prior to the fourth quarter of Fiscal 2018, the Company’s calculation of the allowance for credit losses was based on a recency measure of delinquency. The credit quality indicator and age analysis of Sterling Jewelers customer in-house finance receivables prior to the sale of the prime-only credit portion of the in-house receivable portfolio as of January 28, 2017 and January 30, 2016 are shown below under the recency basis:

	January 28, 2017					January 30, 2016
(in millions)	Gross		Valuation allowance			Gross		Valuation allowance
Performing (accrual status):
Current, aged 0 – 30 days	$	1,538.2	$	(47.2	)	$	1,473.0	$	(45.4	)
Past due, aged 31 – 60 days	282.0		(9.0		)	259.6		(8.3		)
Past due, aged 61 – 90 days	51.6		(2.3		)	49.2		(2.2		)
Non Performing (nonaccrual status):
Past due, aged more than 90 days	80.2		(80.2		)	74.1		(74.1		)
	$	1,952.0	$	(138.7	)	$	1,855.9	$	(130.0	)
Valuation allowance as a % of ending receivable balance			7.1		%			7.0		%

As a result of the sale of the prime-only credit portion of the in-house finance receivable portfolio, the change in measure of delinquency during the fourth quarter of Fiscal 2018, and the difference in collection strategies (including minimum payments and customer contact schedules) utilized by the outsourced service provider in the fourth quarter of Fiscal 2018 as compared to the in-house collection methodologies applied by Signet in prior periods, the comparability of the portfolio performance and aging may be limited.

Securitized credit card receivables

The Sterling Jewelers division previously securitized its credit card receivables through its Sterling Jewelers Receivables Master Note Trust. As a condition of closing the credit transaction during the third quarter of Fiscal 2018, the Company terminated the asset-backed securitization facility to transfer the receivables free and clear. See Note 21 for additional information regarding this asset-backed securitization facility.

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Common Shares, Treasury Shares, Reserves and Dividends

12 Months Ended

Feb. 03, 2018

Equity [Abstract]

Common Shares, Treasury Shares, Reserves and Dividends

Common shares, treasury shares, reserves and dividends

Common shares

The par value of each Common Share is 18 cents. The consideration received for common shares relating to options issued during Fiscal 2018 was $0.3 million (Fiscal 2017: $2.1 million; Fiscal 2016: $5.0 million).

Treasury shares

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, accelerated share repurchase agreements or otherwise. The timing, manner, price and amount of any repurchases will be determined by the Company at 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 held as treasury shares and may be used by Signet for general corporate purposes.

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 the Company’s share option plans.

In February 2016, the Board authorized the repurchase of Signet’s common shares up to $750.0 million (the “2016 Program”). In August 2016, the Board increased its authorized share repurchase program by $625.0 million, bringing the total authorization for the 2016 Program to $1,375.0 million. The 2016 Program may be suspended or discontinued at any time without notice.

On October 5, 2016, the Company entered into an accelerated share repurchase agreement (“ASR”) with a large financial institution to repurchase $525.0 million of the Company’s common shares. At inception, the Company paid $525.0 million to the financial institution and took delivery of 4.7 million shares with an initial estimated cost of $367.5 million. In December 2016, the ASR was finalized and the Company received an additional 1.3 million shares. Total shares repurchased under the ASR were 6.0 million shares at an average purchase price of $87.01per share based on the volume-weighted average price of the Company’s common shares traded during the pricing period, less an agreed discount.

The Company reflected shares delivered as treasury shares as of the date the shares were physically delivered in computing the weighted average common shares outstanding for both basic and diluted earnings per share. The ASR was accounted for as a treasury stock transaction and a forward stock purchase contract. The forward stock purchase contract was determined to be indexed to the Company’s own stock and met all of the applicable criteria for equity classification.

The share repurchase activity is outlined in the table below:

			Fiscal 2018					Fiscal 2017					Fiscal 2016
(in millions, expect per share amounts)	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
2016 Program(1)	$	1,375.0	8.1	$	460.0	$	56.91	10.0	$	864.4	$	86.40	n/a	n/a		n/a
2013 Program(2)	$	350.0	n/a	n/a		n/a		1.2	$	135.6	$	111.26	1.0	$	130.0	$	127.63
Total			8.1	$	460.0	$	56.91	11.2	$	1,000.0	$	89.10	1.0	$	130.0	$	127.63

⁽¹⁾  The 2016 Program had $50.6 million remaining as of February 3, 2018.

⁽²⁾  The 2013 Program was completed in May 2016.

n/a Not applicable.

In June 2017, the Board of Directors authorized a new program to repurchase $600.0 million of Signet’s common shares (the “2017 Program”). The 2017 Program may be suspended or discontinued at any time without notice. The total authorization remaining under all authorized programs as of February 3, 2018 was $650.6 million. Shares were reissued in the amounts of 0.3 million and 0.1 million, net of taxes and forfeitures, in Fiscal 2018 and Fiscal 2017, respectively, to satisfy awards outstanding under existing share-based compensation plans.

Dividends on common shares

	Fiscal 2018					Fiscal 2017					Fiscal 2016
(in millions, except per share amounts)	Cash dividend per share		Total dividends			Cash dividend per share		Total dividends			Cash dividend per share		Total dividends
First quarter	$	0.31	$	21.3		$	0.26	$	20.4		$	0.22	$	17.6
Second quarter	0.31		18.7			0.26		19.7			0.22		17.6
Third quarter	0.31		18.7			0.26		18.1			0.22		17.5
Fourth quarter	0.31		18.8		(1)	0.26		17.7		(1)	0.22		17.5
Total	$	1.24	$	77.5		$	1.04	$	75.9		$	0.88	$	70.2

⁽¹⁾  Signet’s dividend policy results in the dividend payment date being a quarter in arrears from the declaration date. As a result, as of February 3, 2018 and January 28, 2017, $18.8 million and $17.7 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 2018 and Fiscal 2017, respectively.

In addition, on March 14, 2018, Signet’s Board declared a quarterly dividend of $0.37 per share on its common shares. This dividend will be payable on June 1, 2018 to shareholders of record on May 4, 2018, with an ex-dividend date of May 3, 2018.

Dividends on preferred shares

	Fiscal 2018		Fiscal 2017
(in millions)	Total cash dividends		Total cash dividends
First quarter	$	7.8	$	—
Second quarter	7.8		—
Third quarter	7.8		—
Fourth quarter(1)	7.8		11.3
Total	$	31.2	$	11.3

⁽¹⁾  Signet’s preferred shares dividends results in the dividend payment date being a quarter in arrears from the declaration date. As a result, as of February 3, 2018 and January 28, 2017, $7.8 million and $11.3 million, respectively, has been recorded in accrued expenses and other current liabilities in the condensed consolidated balance sheets reflecting the cash dividends on preferred shares declared for the fourth quarter of Fiscal 2018 and Fiscal 2017, respectively.

There were no cumulative undeclared dividends on the preferred shares that reduced net income attributable to common shareholders during Fiscal 2018. In addition, deemed dividends of $1.7 million and $0.6 million related to accretion of issuance costs associated with the preferred shares were recognized in Fiscal 2018 and Fiscal 2017, respectively.

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Earnings Per Common Share

12 Months Ended

Feb. 03, 2018

Earnings Per Share [Abstract]

Earnings per common share

Earnings per common share (“EPS”)

Basic EPS is computed by dividing net income attributable to common shareholders by the weighted average number of common shares outstanding for the period. The computation of basic EPS is outlined in the table below:

(in millions, except per share amounts)	Fiscal 2018		Fiscal 2017		Fiscal 2016
Numerator:
Net income attributable to common shareholders	$	486.4	$	531.3	$	467.9
Denominator:
Weighted average common shares outstanding	63.0		74.5		79.5
EPS – basic	$	7.72	$	7.13	$	5.89

The dilutive effect of share awards represents the potential impact of outstanding awards issued under the Company’s share-based compensation plans, including restricted shares and restricted stock units issued under the Omnibus Plan and stock options issued under the Share Saving Plans and Executive Plans. The dilutive effect of preferred shares represents the potential impact for common shares that would be issued upon conversion. Potential common share dilution related to share awards and preferred shares is determined using the treasury stock and if-converted methods, respectively. Under the if-converted method, the preferred shares are assumed to be converted at the beginning of the period, and the resulting common shares are included in the denominator of the diluted EPS calculation for the entire period being presented. Additionally, cumulative dividends and accretion for issuance costs associated with the preferred shares are added back to net income attributable to common shareholders. See Note 6 for additional discussion of the Company’s preferred shares. The computation of diluted EPS is outlined in the table below:

(in millions, except per share amounts)	Fiscal 2018		Fiscal 2017		Fiscal 2016
Numerator:
Net income attributable to common shareholders	$	486.4	$	531.3	$	467.9
Add: Dividends on preferred shares	32.9		11.9		—
Numerator for diluted EPS	$	519.3	$	543.2	$	467.9
Denominator:
Weighted average common shares outstanding	63.0		74.5		79.5
Plus: Dilutive effect of share awards	0.1		0.1		0.2
Plus: Dilutive effect of preferred shares	6.7		2.1		—
Diluted weighted average common shares outstanding	69.8		76.7		79.7
EPS – diluted	$	7.44	$	7.08	$	5.87

The calculation of diluted EPS excludes the following share awards on the basis that their effect would be anti-dilutive.

(in millions)	Fiscal 2018	Fiscal 2017	Fiscal 2016
Share awards	0.4	0.1	0.1

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Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Feb. 03, 2018

Equity [Abstract]

Accumulated other comprehensive income (loss)

Accumulated other comprehensive income (loss)

The following tables present the changes in AOCI by component and the reclassifications out of AOCI, net of tax:

										Pension plan
(in millions)	Foreign currency translation			Losses on available-for-sale securities, net			Gains (losses) on cash flow hedges			Actuarial gains (losses)			Prior service credits (costs)			Accumulated other comprehensive (loss) income
Balance at January 31, 2015	$	(197.6	)	$	—		$	4.4		$	(56.7	)	$	13.3		$	(236.6	)
OCI before reclassifications	(40.2		)	(0.4		)	(11.8		)	10.9			(0.5		)	(42.0		)
Amounts reclassified from AOCI to net income	—			—			3.5			2.7			(1.7		)	4.5
Net current period OCI	(40.2		)	(0.4		)	(8.3		)	13.6			(2.2		)	(37.5		)
Balance at January 30, 2016	$	(237.8	)	$	(0.4	)	$	(3.9	)	$	(43.1	)	$	11.1		$	(274.1	)
OCI before reclassifications	(25.6		)	—			6.9			(13.6		)	(0.4		)	(32.7		)
Amounts reclassified from AOCI to net income	—			—			(0.6		)	1.2			(1.5		)	(0.9		)
Net current period OCI	(25.6		)	—			6.3			(12.4		)	(1.9		)	(33.6		)
Balance at January 28, 2017	$	(263.4	)	$	(0.4	)	$	2.4		$	(55.5	)	$	9.2		$	(307.7	)
OCI before reclassifications	50.9			0.3			1.8			—			(0.5		)	52.5
Amounts reclassified from AOCI to net income	—			—			(3.5		)	4.4			(6.3		)	(5.4		)
Net current period OCI	50.9			0.3			(1.7		)	4.4			(6.8		)	47.1
Balance at February 3, 2018	$	(212.5	)	$	(0.1	)	$	0.7		$	(51.1	)	$	2.4		$	(260.6	)

The amounts reclassified from AOCI were as follows:

	Amounts reclassified from AOCI
(in millions)	Fiscal 2018			Fiscal 2017			Fiscal 2016			Income statement caption
(Gains) losses on cash flow hedges:
Foreign currency contracts	$	(3.2	)	$	(2.7	)	$	(0.4	)	Cost of sales (see Note 18)
Interest rate swaps	0.3			2.2			2.7			Interest expense, net (see Note 18)
Commodity contracts	(1.7		)	(0.2		)	2.6			Cost of sales (see Note 18)
Total before income tax	(4.6		)	(0.7		)	4.9
Income taxes	1.1			0.1			(1.4		)
Net of tax	(3.5		)	(0.6		)	3.5
Defined benefit pension plan items:
Amortization of unrecognized actuarial losses	2.8			1.5			3.4			Selling, general and administrative expenses(1)
Amortization of unrecognized net prior service credits	(1.4		)	(1.9		)	(2.2		)	Selling, general and administrative expenses(1)
Net curtailment gain and settlement loss	(3.7		)	—			—			Selling, general and administrative expenses(1)
Total before income tax	(2.3		)	(0.4		)	1.2
Income taxes	0.4			0.1			(0.2		)
Net of tax	(1.9		)	(0.3		)	1.0
Total reclassifications, net of tax	$	(5.4	)	$	(0.9	)	$	4.5

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

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Income Taxes

12 Months Ended

Feb. 03, 2018

Income Tax Disclosure [Abstract]

Income taxes

Income taxes

(in millions)	Fiscal 2018			Fiscal 2017		Fiscal 2016
Income before income taxes:
– US	$	202.2		$	424.0	$	426.1
– Foreign	325.0			289.8		231.7
Total income before income taxes	$	527.2		$	713.8	$	657.8
Current taxation:
– US	$	35.9		$	137.6	$	161.7
– Foreign	6.1			3.9		3.5
Deferred taxation:
– US	(34.8		)	28.1		22.3
– Foreign	0.7			1.0		2.4
Total income taxes	$	7.9		$	170.6	$	189.9

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

	Fiscal 2018		Fiscal 2017		Fiscal 2016
US federal income tax rates	35.0	%	35.0	%	35.0	%
US state income taxes	1.9	%	1.9	%	2.7	%
Differences between US federal and foreign statutory income tax rates	(1.0	)%	(0.2	)%	(0.5	)%
Expenditures permanently disallowable for tax purposes, net of permanent tax benefits	1.0	%	0.4	%	0.5	%
Disallowable transaction costs	0.4	%	0.1	%	2.1	%
Impact of global reinsurance arrangements	(8.1	)%	(5.4	)%	(2.4	)%
Impact of global financing arrangements	(11.4	)%	(8.2	)%	(8.7	)%
Provisional benefit in current year taxes - the TCJ Act	(4.1	)%	—	%	—	%
Provisional remeasurement of deferred taxes - the TCJ Act	(12.3	)%	—	%	—	%
Other items	0.1	%	0.3	%	0.2	%
Effective tax rate	1.5	%	23.9	%	28.9	%

In Fiscal 2018, Signet’s effective tax rate was lower than the US federal income tax rate primarily due to the impact of US tax reform as well as Signet’s global reinsurance and financing arrangements utilized to fund the acquisition of Zale. Signet’s future effective tax rate is dependent on changes in the geographic mix of income.

US Tax Reform

On December 22, 2017, the U.S. government enacted “An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018”, which is commonly referred to as “The Tax Cuts and Jobs Act” (the “TCJ Act”). The TCJ Act provides for comprehensive tax legislation that reduces the U.S. federal statutory corporate tax rate from 35.0 percent to 21.0 percent effective January 1, 2018, limits certain deductions, including limiting the deductibility of interest expense to 30% of U.S. Earnings Before Interest, Taxes, Depreciation and Amortization, broadens the U.S. federal income tax base, requires companies to pay a one-time repatriation tax on earnings of certain foreign subsidiaries that were previously tax deferred (“transition tax”), and creates new taxes on certain foreign sourced earnings. As we have a 52-53-week tax year ending the Saturday nearest October 31, the lower corporate income tax rate is administratively phased in, resulting in a blended U.S. federal statutory tax rate of approximately 23.4 percent for our fiscal tax year from October 29, 2017 through November 3, 2018, and 21.0 percent for our fiscal tax years thereafter.

On December 22, 2017, the SEC issued Staff Accounting Bulletin 118 (“SAB 118”), expressing its views regarding the FASB's Accounting Standards Codification 740, Income Taxes, in the reporting period that includes the enactment date of the TCJ Act. SAB 118 recognizes that a registrant’s review of certain income tax effects of the TCJ Act may be incomplete at the time financial statements are issued for the reporting period that includes the enactment date, including interim periods therein. Specifically, SAB 118 allows a company to report provisional estimates in the reporting period that includes the enactment date if the company does not have the necessary information available, prepared, or fully analyzed for certain income tax effects of the TCJ Act. The provisional estimates would be adjusted during a measurement period not to exceed 12 months from the enactment date of the TCJ Act, at which time the accounting for the income tax effects of the TCJ Act is required to be completed.

We have not completed our accounting for the income tax effects of the enactment of the TCJ Act; however, we have made a reasonable estimate of the effects on our existing deferred tax balances. We expect to complete our analysis of the amounts recorded as of enactment of the TCJ Act within the measurement period of one year.

In addition to the estimates further described below, we also used assumptions and estimates that may change as a result of future guidance and interpretation from the Internal Revenue Service, other taxing jurisdictions, the SEC, and the FASB. In particular, we anticipate that the U.S. state jurisdictions will continue to determine and announce their conformity or decoupling from the TCJ Act, either in its entirety or with respect to specific provisions. All of these potential legislative and interpretive actions could result in adjustments to our provisional estimates when the accounting for the income tax effects of the TCJ Act is completed.

Accordingly, our income tax provision as of February 3, 2018, reflects the current year impacts of the TCJ Act on the effective tax rate, and the following provisional estimates of the adjustments resulting directly from the enactment of the TCJ Act based on information available, prepared, or analyzed as of February 3, 2018 in reasonable detail:

	Fiscal 2018
(in millions)	Income tax benefit (expense)
Net impact on remeasurement of US deferred tax assets and liabilities	$	64.7
Net impact of reduce US tax rate on income from October 29, 2017 through February 3, 2018	21.5
Net benefit of the TCJ Act	$	86.2

Deferred tax assets and liabilities: We remeasured our existing US deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, of which the federal component is approximately 23.4 percent for reversals expected in the tax year from October 29, 2018 through November 3, 2018 and 21.0 percent thereafter. The provisional amount recorded related to the remeasurement of our deferred tax balance is a benefit of $64.7 million. The effect of the remeasurement was recorded in the fourth quarter of Financial Year 2018, consistent with the enactment date of the TCJ Act, and reflected in our provision for income taxes. We determined that the calculation cannot be completed until all of the underlying timing differences as of November 3, 2018, are known, rather than estimated at February 3, 2018. Furthermore, we are still analyzing certain aspects of the TCJ Act and refining our calculations, which could potentially affect the measurement of these balances or potentially give rise to new or additional deferred tax amounts.

Foreign tax effects: The transition tax is based on total post-1986 earnings and profits which were previously deferred from U.S. income taxes. There is no expected transition tax liability estimated as the earnings and profits of the US foreign subsidiaries are estimated to be in an aggregate deficit position. The transition tax is provisional because numerous components of the computation are estimated as of February 3, 2018.

We continue to review the anticipated impacts of the global intangible low-taxed income (“GILTI”) and base erosion and anti-abuse tax (“BEAT”), which are not effective until our tax year beginning November 4, 2018. We have not recorded any impact associated with either GILTI or BEAT in the tax rate during the financial year ended February 3, 2018.

The components of the provisional net tax expense recorded in the financial year ended February 3, 2018 are based on currently available information and additional information needs to be prepared, obtained and/or analyzed to determine the final amounts. The provisional tax benefit for the remeasurement of deferred taxes will require additional information necessary for the preparation of our U.S. federal tax return, and further analysis and interpretation of certain provisions of the TCJ Act could impact our deferred tax balance as of February 3, 2018.

Deferred taxes

Deferred tax assets (liabilities) consisted of the following:

	February 3, 2018									January 28, 2017
(in millions)	Assets			(Liabilities)			Total			Assets			(Liabilities)			Total
Intangible assets	$	—		$	(130.9	)	$	(130.9	)	$	—		$	(160.1	)	$	(160.1	)
US property, plant and equipment	—			(65.2		)	(65.2		)	—			(86.2		)	(86.2		)
Foreign property, plant and equipment	6.2			—			6.2			5.0			—			5.0
Inventory valuation	—			(193.7		)	(193.7		)	—			(289.4		)	(289.4		)
Allowances for doubtful accounts	34.4			—			34.4			60.4			—			60.4
Revenue deferral	147.1			—			147.1			216.0			—			216.0
Derivative instruments	—			(0.3		)	(0.3		)	—			—			—
Straight-line lease payments	26.5			—			26.5			37.5			—			37.5
Deferred compensation	9.2			—			9.2			16.5			—			16.5
Retirement benefit obligations	—			(7.6		)	(7.6		)	—			(6.1		)	(6.1		)
Share-based compensation	4.4			—			4.4			5.7			—			5.7
Other temporary differences	47.1			—			47.1			51.0			—			51.0
Net operating losses and foreign tax credits	56.9			—			56.9			69.2			—			69.2
Value of foreign capital losses	12.0			—			12.0			11.3			—			11.3
Total gross deferred tax assets (liabilities)	$	343.8		$	(397.7	)	$	(53.9	)	$	472.6		$	(541.8	)	$	(69.2	)
Valuation allowance	(37.0		)	—			(37.0		)	(31.5		)	—			(31.5		)
Deferred tax assets (liabilities)	$	306.8		$	(397.7	)	$	(90.9	)	$	441.1		$	(541.8	)	$	(100.7	)
Disclosed as:
Non-current assets							$	1.4								$	0.7
Non-current liabilities							(92.3		)							(101.4		)
Deferred tax assets (liabilities)							$	(90.9	)							$	(100.7	)

As of February 3, 2018, Signet had deferred tax assets associated with net operating loss carry forwards of $31.7 million, which are subject to ownership change limitations rules under Section 382 of the Internal Revenue Code (“IRC”) and various US state regulations, and expire between 2018 and 2037. Deferred tax assets associated with foreign tax credits also subject to Section 382 of the IRC total $13.7 million as of February 3, 2018, which expire between 2018 and 2024 and foreign net operating loss carryforwards of $11.5 million, which expire between 2018 and 2038. Additionally, Signet had foreign capital loss carry forward deferred tax assets of $12.0 million (Fiscal 2017: $11.3 million), which are only available to offset future capital gains, if any, over an indefinite period.

The increase in the total valuation allowance in Fiscal 2018 was $5.5 million (Fiscal 2017: $0.4 million net decrease; Fiscal 2016: $0.5 million net increase). The valuation allowance primarily relates to foreign capital and trading loss carry forwards, foreign tax credits and state net operating losses 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 3, 2018 will be offset where permissible by deferred tax liabilities or realized on future tax returns, primarily from the generation of future taxable income.

Uncertain tax positions

The following table summarizes the activity related to the Company’s unrecognized tax benefits for US federal, US state and non-US tax jurisdictions:

(in millions)	Fiscal 2018			Fiscal 2017			Fiscal 2016
Unrecognized tax benefits, beginning of period	$	12.0		$	11.4		$	11.4
Increases related to current year tax positions	2.3			2.4			2.0
Lapse of statute of limitations	(2.4		)	(1.9		)	(1.9		)
Difference on foreign currency translation	0.1			0.1			(0.1		)
Unrecognized tax benefits, end of period	$	12.0		$	12.0		$	11.4

As of February 3, 2018, Signet had approximately $12.0 million of unrecognized tax benefits in respect to uncertain tax positions. The unrecognized tax benefits relate primarily 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. As of February 3, 2018, Signet had accrued interest of $2.7 million and $0.7 million of accrued penalties. If all of these unrecognized tax benefits were settled in Signet’s favor, the effective income tax rate would be favorably impacted by $13.1 million.

Over the next twelve months management believes that it is reasonably possible that there could be a reduction of some or all of the unrecognized tax benefits as of February 3, 2018 due to settlement of the uncertain tax positions with the tax authorities.

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, Canada and certain other foreign jurisdictions. Signet is subject to examinations by the US federal and state and Canadian tax authorities for tax years ending after November 1, 2011 and is subject to examination by the UK tax authority for tax years ending after February 1, 2014.

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Other Operating Income, Net

12 Months Ended

Feb. 03, 2018

Other Income and Expenses [Abstract]

Other operating income, net

Other operating income, net

(in millions)	Fiscal 2018		Fiscal 2017		Fiscal 2016
Interest income from in-house customer finance programs(1)	$	258.1	$	282.5	$	252.6
Other	2.7		0.1		(1.7		)
Other operating income, net	$	260.8	$	282.6	$	250.9

⁽¹⁾  See Note 3 and Note 12 for additional information.

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Accounts Receivable, Net

12 Months Ended

Feb. 03, 2018

Receivables [Abstract]

Accounts receivable, net

Credit transaction, net

In October 2017, Signet, through its subsidiary Sterling, completed the sale of the prime-only credit quality portion of Sterling’s in-house finance receivable portfolio to Comenity. The following events summarize the credit transaction:

Receivables reclassification: In the second quarter of Fiscal 2018, certain in-house finance receivables that met the criteria for sale to Comenity were reclassified from "held for investment" to "held for sale." Accordingly, the receivables were recorded at the lower of cost (par) or fair value, resulting in the reversal of the related allowance for credit losses of $20.7 million. This reversal was recorded in credit transaction, net in the consolidated income statement during the second quarter of Fiscal 2018.

Proceeds received: In October 2017, the Company received $952.5 million in cash consideration reflecting the par value of the receivables sold. In addition, the Company recognized a beneficial interest asset of $10.2 million representing the present value of the cash flows the Company expects to receive under the economic profit sharing agreement related to the receivables sold. The gain upon recognition of the beneficial interest asset was recorded in credit transaction, net in the consolidated income statement during the third quarter of Fiscal 2018.

Expenses: During Fiscal 2018, the Company incurred $29.6 million of transaction-related costs. These costs were recorded in credit transaction, net in the consolidated income statement during Fiscal 2018.

Asset-backed securitization facility termination: In October 2017, the Company terminated the asset-backed securitization facility in order to transfer the receivables free and clear. The asset-backed securitization facility had a principal balance outstanding of $600.0 million at the time of termination. The payoff was funded through the proceeds received from the par value of receivables sold. See Note 21 for additional information regarding the asset-backed securitization facility.

Program agreement: Comenity provides credit to prime-only credit quality customers with an initial term of seven years and, unless terminated by either party, additional renewal terms of two years. Under the Program Agreement, Comenity established a program to issue Sterling credit cards to be serviced, marketed and promoted in accordance with the terms of the agreement. Subject to limited exceptions, Comenity is the exclusive issuer of private label credit cards or an installment or other closed end loan product in the United States bearing specified Company trademarks, including “Kay”, “Jared” and specified regional brands, but excluding “Zale”, during the term of the agreement. The pre-existing arrangement with Comenity for the issuing of Zale credit cards was unaffected by the execution of the Program Agreement. Upon expiration or termination by either party of the Program Agreement, Sterling retains the option to purchase, or arrange the purchase by a third party of, the program assets from Comenity on terms that are no more onerous to Sterling than those applicable to Comenity under the Purchase Agreement, or in the case of a purchase by a third party, on customary terms. Additionally, the Company received a signing bonus, which may be repayable under certain conditions if the Program Agreement is terminated, and a right to receive future payments related to the performance of the credit program under an economic profit sharing agreement. The Program Agreement contains customary representations, warranties and covenants.

Additionally, Signet and Genesis Financial Solutions (“Genesis”) entered into a five-year servicing agreement in October 2017, under which Genesis will provide credit servicing functions for Signet’s existing non-prime accounts receivable, as well as future non-prime account originations.

During March 2018, the Company announced that it entered a definitive agreement with CarVal Investors (“CarVal”) to sell all eligible non-prime in-house accounts receivable. This agreement, in conjunction with the previously executed prime credit transaction with Comenity and the outsourcing of the servicing of the non-prime credit program to Genesis, will complete Signet’s transition to an outsourced credit structure. The sale is expected to close during the second quarter of Fiscal 2019 subject to certain closing conditions. In addition, for a five-year term, Signet will remain the issuer of non-prime credit with investment funds managed by CarVal Investors purchasing forward receivables at a discount rate determined in accordance with the agreement. Servicing of the non-prime receivables, including operational interfaces and customer servicing, will continue to be provided by Genesis.

During the first quarter of Fiscal 2019, the Company will reclassify its existing in-house finance receivables from held for investment to held for sale. The Company expects to recognize a loss of approximately $140.0 million upon reclassification as held for sale receivables are required to be valued at the lower of cost (par) or fair value, which incorporates an expectation of future losses. As of February 3, 2018, the Company’s non-prime accounts receivable are presented net of an allowance for credit losses, which represents management’s estimate of expected losses incurred in the accounts receivable portfolio as of the balance sheet date, as required under US GAAP (Topic 310 of the FASB Accounting Standards Codification). The transaction is expected to close in the second quarter of Signet's Fiscal 2019 subject to certain closing conditions.

Accounts receivable, net

In October 2017, the Company completed the sale of the prime-only credit quality portion of the Sterling Jewelers customer in-house finance receivable portfolio. The receivables sold, which were classified as "held for sale" as of the second quarter of Fiscal 2018, are no longer reported within the consolidated balance sheet. See Note 3 for additional information regarding the sale of these receivables. 

Signet’s accounts receivable primarily consist of US customer in-house financing receivables. The in-house finance receivable portfolio consists of a population that is of similar characteristics and is evaluated collectively for impairment.

(in millions)	February 3, 2018		January 28, 2017
Accounts receivable by portfolio segment, net:
Sterling Jewelers customer in-house finance receivables	$	649.4	$	1,813.3
Zale customer in-house finance receivables	33.5		33.4
Other accounts receivable	9.6		11.3
Total accounts receivable, net	$	692.5	$	1,858.0

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.

During the third quarter of Fiscal 2016, Signet implemented a program to provide in-house credit to customers in the Zale division’s US locations. The allowance for credit losses associated with Zale customer in-house finance receivables was immaterial as of February 3, 2018 and January 28, 2017. Effective October 20, 2017, the Zale customer in-house financing programs are being underwritten and serviced by a third party for newly originated balances after the effective date.

Other accounts receivable is comprised primarily of accounts receivable relating to the insurance loss replacement business in the UK Jewelry division of $9.3 million (January 28, 2017: $11.0 million).

Sterling Jewelers customer in-house finance receivables

The allowance for credit losses associated with the portion of Sterling Jewelers customer in-house finance receivables sold in October 2017 was reversed during the second quarter of Fiscal 2018. The allowance for credit losses on Sterling Jewelers remaining customer in-house finance receivables is shown below:

(in millions)	Fiscal 2018			Fiscal 2017			Fiscal 2016
Beginning balance:	$	(138.7	)	$	(130.0	)	$	(113.1	)
Charge-offs, net	221.2			203.4			173.6
Recoveries	34.3			35.1			35.3
Provision	(251.0		)	(247.2		)	(225.8		)
Reversal of allowance on receivables sold	20.7			—			—
Ending balance	(113.5		)	(138.7		)	(130.0		)
Ending receivable balance evaluated for impairment	762.9			1,952.0			1,855.9
Sterling Jewelers customer in-house finance receivables, net	649.4			1,813.3			1,725.9

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

As a result of the sale of the prime-only credit portion of the Sterling Jewelers customer in-house finance receivable portfolio and the outsourcing of the credit servicing on the remaining in-house finance receivable portfolio disclosed in Note 3, the Company revised its methodology for measuring delinquency to be based on the contractual basis. The credit quality indicator and age analysis of Sterling Jewelers customer in-house finance receivables are shown below under the contractual basis:

	February 3, 2018
(in millions)	Gross		Valuation allowance
Performing (accrual status):
0 - 120 days past due	$	703.4	$	(54.0	)
121 or more days past due	59.5		(59.5		)
	$	762.9	$	(113.5	)
Valuation allowance as a % of ending receivable balance			14.9		%

Prior to the fourth quarter of Fiscal 2018, the Company’s calculation of the allowance for credit losses was based on a recency measure of delinquency. The credit quality indicator and age analysis of Sterling Jewelers customer in-house finance receivables prior to the sale of the prime-only credit portion of the in-house receivable portfolio as of January 28, 2017 and January 30, 2016 are shown below under the recency basis:

	January 28, 2017					January 30, 2016
(in millions)	Gross		Valuation allowance			Gross		Valuation allowance
Performing (accrual status):
Current, aged 0 – 30 days	$	1,538.2	$	(47.2	)	$	1,473.0	$	(45.4	)
Past due, aged 31 – 60 days	282.0		(9.0		)	259.6		(8.3		)
Past due, aged 61 – 90 days	51.6		(2.3		)	49.2		(2.2		)
Non Performing (nonaccrual status):
Past due, aged more than 90 days	80.2		(80.2		)	74.1		(74.1		)
	$	1,952.0	$	(138.7	)	$	1,855.9	$	(130.0	)
Valuation allowance as a % of ending receivable balance			7.1		%			7.0		%

As a result of the sale of the prime-only credit portion of the in-house finance receivable portfolio, the change in measure of delinquency during the fourth quarter of Fiscal 2018, and the difference in collection strategies (including minimum payments and customer contact schedules) utilized by the outsourced service provider in the fourth quarter of Fiscal 2018 as compared to the in-house collection methodologies applied by Signet in prior periods, the comparability of the portfolio performance and aging may be limited.

Securitized credit card receivables

The Sterling Jewelers division previously securitized its credit card receivables through its Sterling Jewelers Receivables Master Note Trust. As a condition of closing the credit transaction during the third quarter of Fiscal 2018, the Company terminated the asset-backed securitization facility to transfer the receivables free and clear. See Note 21 for additional information regarding this asset-backed securitization facility.

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Inventories

12 Months Ended

Feb. 03, 2018

Inventory Disclosure [Abstract]

Inventories

Inventories

Signet held $606.4 million of consignment inventory at February 3, 2018 (January 28, 2017: $574.0 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 adjust the inventory prices prior to sale.

The following table summarizes the details of the Company’s inventory:

(in millions)	February 3, 2018		January 28, 2017
Raw materials	$	72.0	$	60.8
Finished goods	2,208.5		2,388.5
Total inventories	$	2,280.5	$	2,449.3

Inventory reserves

(in millions)	Fiscal 2018			Fiscal 2017			Fiscal 2016
Inventory reserve, beginning of period	$	43.2		$	43.2		$	28.4
Charged to profit	75.8			57.3			87.6
Utilization(1)	(78.4		)	(57.3		)	(72.8		)
Inventory reserve, end of period	$	40.6		$	43.2		$	43.2

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

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Property, Plant and Equipment, Net

12 Months Ended

Feb. 03, 2018

Property, Plant and Equipment [Abstract]

Property, plant and equipment, net

Property, plant and equipment, net

(in millions)	February 3, 2018			January 28, 2017
Land and buildings	$	35.9		$	33.5
Leasehold improvements	689.8			632.4
Furniture and fixtures	804.2			761.0
Equipment	177.0			137.7
Software	271.4			211.0
Construction in progress	97.2			96.7
Total	$	2,075.5		$	1,872.3
Accumulated depreciation and amortization	(1,197.6		)	(1,049.4		)
Property, plant and equipment, net	$	877.9		$	822.9

Depreciation and amortization expense for Fiscal 2018 was $194.1 million (Fiscal 2017: $175.0 million; Fiscal 2016: $161.4 million). The expense for Fiscal 2018 includes $1.0 million (Fiscal 2017: $1.3 million; Fiscal 2016: $0.7 million) for the impairment of assets.

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Goodwill and Intangibles

12 Months Ended

Feb. 03, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and intangibles

Goodwill and intangibles

In connection with the acquisition of R2Net on September 12, 2017, the Company recognized $301.7 million of goodwill, which is reported in the Sterling Jewelers segment. The amount of goodwill generated will be adjusted for any additional assets or liabilities identified by the Company or for any adjustments to the preliminary fair values identified for the assets acquired and liabilities assumed in the R2Net acquisition.

Goodwill

The following table summarizes the Company’s goodwill by reportable segment:

(in millions)	Sterling Jewelers		Zale Jewelry		Piercing Pagoda		UK Jewelry		Other		Total
Balance at January 30, 2016	$	23.2	$	488.7	$	—	$	—	$	3.6	$	515.5
Impact of foreign exchange	—		2.1		—		—		—		2.1
Balance at January 28, 2017	$	23.2	$	490.8	$	—	$	—	$	3.6	$	517.6
Acquisitions	301.7		—		—		—		—		301.7
Impact of foreign exchange	—		2.4		—		—		—		2.4
Balance at February 3, 2018	$	324.9	$	493.2	$	—	$	—	$	3.6	$	821.7

There have been no goodwill impairment losses recognized during Fiscal 2018 and Fiscal 2017. If future economic conditions are different than those projected by management, future impairment charges may be required.

Intangibles

Definite-lived intangible assets include trade names and favorable lease agreements. Indefinite-lived intangible assets include trade names. Both definite and indefinite-lived assets are recorded within intangible assets, net on the consolidated balance sheets. Intangible liabilities, net is comprised of unfavorable lease agreements and contracts and is recorded within other liabilities on the consolidated balance sheets. The following table provides additional detail regarding the composition of intangible assets and liabilities:

	February 3, 2018									January 28, 2017
(in millions)	Gross carrying amount			Accumulated amortization			Net carrying amount			Gross carrying amount			Accumulated amortization			Net carrying amount
Intangible assets, net:
Definite-lived intangible assets	49.8			(46.7		)	3.1			49.0			(36.8		)	12.2
Indefinite-lived intangible assets	478.4			—			478.4			404.8			—			404.8
Total intangible assets, net	$	528.2		$	(46.7	)	$	481.5		$	453.8		$	(36.8	)	$	417.0
Intangible liabilities, net	$	(114.5	)	$	85.2		$	(29.3	)	$	(113.9	)	$	71.7		$	(42.2	)

Amortization expense relating to intangible assets was $9.3 million in Fiscal 2018 (Fiscal 2017: $13.8 million; Fiscal 2016: $13.9 million). The unfavorable leases and unfavorable contracts are classified as liabilities and recognized over the term of the underlying lease or contract. Amortization relating to intangible liabilities was $13.0 million in Fiscal 2018 (Fiscal 2017: $19.7 million; Fiscal 2016: $28.7 million). Expected future amortization for intangible assets and future amortization for intangible liabilities recorded at February 3, 2018 follows:

(in millions)	Intangible assets, net amortization		Intangible liabilities amortization
2019	$	2.7	$	(7.7	)
2020	0.3		(5.7		)
2021	0.1		(5.4		)
2022	—		(5.4		)
2023	—		(5.1		)
Total	$	3.1	$	(29.3	)

During the first quarter of Fiscal 2019, the Company observed a general decline in the market valuation of the Company’s common shares which could impact the assumptions used to perform an evaluation of its indefinite-lived intangible assets, including goodwill and trade names. As of the date of this report, the estimated fair value of the reporting units and indefinite-lived trade names continues to exceed the carrying values. However, the Company will continue to monitor sales trends, interest rates, and other key inputs to the estimates of fair value. A further decline in the key inputs, especially sales trends used in the valuation of trade names, may result in an impairment charge.

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Other Assets

12 Months Ended

Feb. 03, 2018

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other assets

Other assets

(in millions)	February 3, 2018		January 28, 2017
Deferred ESP selling costs	$	89.5	$	86.1
Investments(1)	27.9		27.2
Other assets	53.8		51.8
Total other assets	$	171.2	$	165.1

⁽¹⁾  See Note 17 for additional detail.

In addition, other current assets include deferred direct selling costs in relation to the sale of ESP of $30.9 million as of February 3, 2018 (January 28, 2017: $29.4 million).

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Investments

12 Months Ended

Feb. 03, 2018

Investments, Debt and Equity Securities [Abstract]

Investments

Investments

Investments in debt and equity securities are held by certain insurance subsidiaries and are reported at fair value as other assets in the accompanying consolidated balance sheets. All investments are classified as available-for-sale and include the following:

	February 3, 2018							January 28, 2017
(in millions)	Cost		Unrealized Gain (Loss)			Fair Value		Cost		Unrealized Gain (Loss)			Fair Value
US Treasury securities	$	8.3	$	(0.8	)	$	7.5	$	8.8	$	(0.7	)	$	8.1
US government agency securities	5.3		(0.2		)	5.1		4.6		(0.2		)	4.4
Corporate bonds and notes	11.0		(0.2		)	10.8		11.0		(0.1		)	10.9
Corporate equity securities	3.5		1.0			4.5		3.5		0.3			3.8
Total investments	$	28.1	$	(0.2	)	$	27.9	$	27.9	$	(0.7	)	$	27.2

Realized gains and losses on investments are determined on the specific identification basis. There were no material net realized gains or losses during Fiscal 2018 and Fiscal 2017. Investments with a carrying value of $6.8 million and $6.6 million were on deposit with various state insurance departments at February 3, 2018 and January 28, 2017, respectively, as required by law.

Investments in debt securities outstanding as of February 3, 2018 mature as follows:

(in millions)	Cost		Fair Value
Less than one year	$	2.9	$	2.3
Year two through year five	16.9		16.4
Year six through year ten	4.8		4.7
Total investment in debt securities	$	24.6	$	23.4

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Derivatives

12 Months Ended

Feb. 03, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

Derivatives

Derivative transactions are used by Signet for risk management purposes to address risks inherent in Signet’s business operations and sources of financing. The main risks arising from Signet’s operations are market risk including foreign currency risk, commodity risk, liquidity risk and interest rate risk. Signet uses derivative financial instruments to manage and mitigate certain of these risks under policies reviewed and approved by the Board of Directors. Signet does not enter into derivative transactions for speculative purposes.

Market risk

Signet generates revenues and incurs expenses in US dollars, Canadian dollars and British pounds. As a portion of UK Jewelry purchases and purchases made by the Canadian operations of the Zale division 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 British pounds and Canadian dollars reflecting the cash generative characteristics of operations. Signet’s objective is to minimize net foreign exchange exposure to the income statement on non-US dollar denominated items through managing cash levels, non-US dollar denominated intra-entity balances and foreign currency swaps. In order to manage the foreign exchange exposure and minimize the level of funds denominated in British pounds and Canadian dollars, dividends are paid regularly by subsidiaries to their immediate holding companies and excess British pounds and Canadian dollars 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 options to purchase, precious metals within treasury guidelines approved by the Board of Directors. In particular, Signet undertakes some hedging of its requirements 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 of Directors. Cash generated from operations and external financing are the main sources of funding, which supplement Signet’s resources in meeting liquidity requirements.

The main external sources of funding are a senior unsecured credit facility and senior unsecured notes as described in Note 21.

Interest rate risk

Signet has exposure to movements in interest rates associated with cash and borrowings. Signet may enter into various interest rate protection agreements in order to limit the impact of movements in interest rates.

Interest rate swap (designated) — The Company entered into an interest rate swap in March 2015 with an aggregate notional amount of $300.0 million that is scheduled to mature through April 2019. Under this contract, the Company agrees to exchange, at specified intervals, the difference between fixed contract rates and floating rate interest amounts calculated by reference to the agreed notional amounts. This contract was entered into to reduce the consolidated interest rate risk associated with variable rate, long-term debt. The Company designated this derivative as a cash flow hedge of the variability in expected cash outflows for interest payments. The Company has effectively converted a portion of its variable-rate senior unsecured term loan into fixed-rate debt.

The fair value of the swap is presented within the consolidated balance sheets, and the Company recognizes any changes in the fair value as an adjustment of AOCI within equity to the extent the swap is effective. The ineffective portion, if any, is recognized in current period earnings. As interest expense is accrued on the debt obligation, amounts in AOCI related to the interest rate swap are reclassified into income resulting in a net interest expense on the hedged amount of the underlying debt obligation equal to the effective yield of the fixed rate of the swap. In the event that the interest rate swap is dedesignated prior to maturity, gains or losses in AOCI remain deferred and are reclassified into earnings in the periods in which the hedged forecasted transaction affects earnings.

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 12 of which no single customer represents a significant portion of the Company’s receivable balance. 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.

Commodity and foreign currency risks

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 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 3, 2018 was $26.6 million (January 28, 2017: $37.8 million). These contracts have been designated as cash flow hedges and will be settled over the next 11 months (January 28, 2017: 12 months).

Forward foreign currency exchange contracts (undesignated) — Foreign currency contracts not designated as cash flow hedges are used to limit the impact of movements in foreign exchange rates on recognized foreign currency payables and 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 3, 2018 was $112.7 million (January 28, 2017: $117.8 million).

Commodity forward purchase contracts and net zero-cost collar arrangements (designated) — These contracts are entered into 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 3, 2018 was for approximately 6,000 ounces of gold (January 28, 2017: 94,000 ounces). These contracts have been designated as cash flow hedges and will be settled over the next 12 months (January 28, 2017: 12 months).

The bank counterparties to the derivative instruments expose Signet to credit-related losses in the event of their non-performance. However, to mitigate that risk, Signet only contracts with counterparties that meet certain minimum requirements under its counterparty risk assessment process. As of February 3, 2018, 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:

	Fair value of derivative assets
(in millions)	Balance sheet location	February 3, 2018		January 28, 2017
Derivatives designated as hedging instruments:
Foreign currency contracts	Other current assets	$	—	$	1.4
Interest rate swaps	Other assets	2.2		0.4
		2.2		1.8
Derivatives not designated as hedging instruments:
Foreign currency contracts	Other current assets	—		1.8
Total derivative assets		$	2.2	$	3.6

	Fair value of derivative liabilities
(in millions)	Balance sheet location	February 3, 2018			January 28, 2017
Derivatives designated as hedging instruments:
Foreign currency contracts	Other current liabilities	$	(1.4	)	$	(0.2	)
Commodity contracts	Other current liabilities	(0.1		)	(3.4		)
		(1.5		)	(3.6		)
Derivatives not designated as hedging instruments:
Foreign currency contracts	Other current liabilities	(0.9		)	—
Total derivative liabilities		$	(2.4	)	$	(3.6	)

Derivatives designated as cash flow hedges

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

(in millions)	February 3, 2018			January 28, 2017
Foreign currency contracts	$	(2.4	)	$	4.1
Commodity contracts	1.4			(2.1		)
Interest rate swaps	2.2			0.4
Gains recorded in AOCI	$	1.2		$	2.4

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

Foreign currency contracts

(in millions)	Income statement caption	Fiscal 2018			Fiscal 2017
Gains recorded in AOCI, beginning of period		$	4.1		$	1.4
Current period (losses) gains recognized in OCI		(3.3		)	5.4
Gains reclassified from AOCI to net income	Cost of sales	(3.2		)	(2.7		)
(Losses) gains recorded in AOCI, end of period		$	(2.4	)	$	4.1

Commodity contracts

(in millions)	Income statement caption	Fiscal 2018			Fiscal 2017
Losses recorded in AOCI, beginning of period		$	(2.1	)	$	(3.7	)
Current period gains recognized in OCI		5.2			1.8
Gains reclassified from AOCI to net income	Cost of sales	(1.7		)	(0.2		)
Gains (losses) recorded in AOCI, end of period		$	1.4		$	(2.1	)

Interest rate swaps

(in millions)	Income statement caption	Fiscal 2018		Fiscal 2017
Gains (losses) recorded in AOCI, beginning of period		$	0.4	$	(3.4	)
Current period gains recognized in OCI		1.5		1.6
Losses reclassified from AOCI to net income	Interest expense, net	0.3		2.2
Gains recorded in AOCI, end of period		$	2.2	$	0.4

There was no material ineffectiveness related to the Company’s derivative instruments designated in cash flow hedging relationships during Fiscal 2018 and Fiscal 2017. Based on current valuations, the Company expects approximately $0.5 million of net pre-tax derivative gains to be reclassified out of AOCI 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 gains (losses) recognized in net income
(in millions)		Fiscal 2018		Fiscal 2017
Derivatives not designated as hedging instruments:
Foreign currency contracts	Other operating income, net	$	8.4	$	6.3

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Fair Value Measurement

12 Months Ended

Feb. 03, 2018

Fair Value Disclosures [Abstract]

Fair value measurement

Fair value measurement

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 3, 2018								January 28, 2017
(in millions)	Carrying Value			Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)			Carrying Value			Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)
Assets:
US Treasury securities	$	7.5		$	7.5	$	—		$	8.1		$	8.1	$	—
Corporate equity securities	4.5			4.5		—			3.8			3.8		—
Foreign currency contracts	—			—		—			3.2			—		3.2
Interest rate swaps	2.2			—		2.2			0.4			—		0.4
US government agency securities	5.1			—		5.1			4.4			—		4.4
Corporate bonds and notes	10.8			—		10.8			10.9			—		10.9
Total assets	$	30.1		$	12.0	$	18.1		$	30.8		$	11.9	$	18.9
Liabilities:
Foreign currency contracts	$	(2.3	)	$	—	$	(2.3	)	$	(0.2	)	$	—	$	(0.2	)
Commodity contracts	(0.1		)	—		(0.1		)	(3.4		)	—		(3.4		)
Total liabilities	$	(2.4	)	$	—	$	(2.4	)	$	(3.6	)	$	—	$	(3.6	)

Investments in US Treasury securities and corporate equity securities are based on quoted market prices for identical instruments in active markets, and therefore were classified as Level 1 measurements in the fair value hierarchy. Investments in US government agency securities and corporate bonds and notes are based on quoted prices for similar instruments in active markets, and therefore were classified as Level 2 measurements in the fair value hierarchy. See Note 17 for additional information related to the Company’s available-for-sale investments. The fair values of derivative financial instruments have been determined based on market value equivalents at the balance sheet date, taking into account the current interest rate environment, foreign currency forward rates or commodity forward rates, and therefore were classified as Level 2 measurements in the fair value hierarchy. See Note 18 for additional information related to the Company’s derivatives.

As of February 3, 2018, the fair value of the in-house finance receivable portfolio was approximately 70% of par value. This estimated value was derived from a discounted cash flow model using unobservable inputs, including estimated yields, loss rates, payment rates and discount rates to estimate the fair value associated with the accounts receivable existing as of February 3, 2018, with consideration given to the terms of the agreement entered into with CarVal Investors in March 2018.  See Note 3 for additional information.

The carrying amounts of cash and cash equivalents, other receivables, accounts payable, accrued expenses, other liabilities, income taxes and the revolving credit facility approximate fair value because of the short-term maturity of these amounts.

The fair values of long-term debt instruments were determined using quoted market prices in inactive markets or discounted cash flows based upon current observable market interest rates and therefore were classified as Level 2 measurements in the fair value hierarchy. See Note 21 for classification between current and long-term debt. The carrying amount and fair value of outstanding debt at February 3, 2018 and January 28, 2017 were as follows:

	February 3, 2018				January 28, 2017
(in millions)	Carrying Value		Fair Value		Carrying Value		Fair Value
Long-term debt
Senior notes (Level 2)	$	394.5	$	396.3	$	393.7	$	391.2
Securitization facility (Level 2)	—		—		599.7		600.0
Term loan (Level 2)	323.5		326.2		345.1		348.6
Total	$	718.0	$	722.5	$	1,338.5	$	1,339.8

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Pension Plans

12 Months Ended

Feb. 03, 2018

Retirement Benefits [Abstract]

Pension plans

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. Signet used February 3, 2018 and January 28, 2017 measurement dates in determining the UK Plan’s benefit obligation and fair value of plan assets.

In September 2017, the Company approved an amendment to freeze benefit accruals under the UK Plan in an effort to reduce anticipated future pension expense. As a result of this amendment, the Company will freeze the pension plan for all participants with an effective date of either December 2017 or October 2019 as elected by the plan participants. All future benefit accruals under the plan shall cease. The amendment to the plan was accounted for in accordance with FASB Accounting Standards Codification (“ASC”) Topic 715, “Compensation - Retirement Benefits.”

The following tables provide information concerning the UK Plan as of and for the fiscal years ended February 3, 2018 and January 28, 2017:

(in millions)	Fiscal 2018			Fiscal 2017
Change in UK Plan assets:
Fair value at beginning of year	$	247.6		$	266.2
Actual return on UK Plan assets	11.0			18.2
Employer contributions	3.2			3.3
Members’ contributions	0.4			0.6
Benefits paid	(8.7		)	(9.9		)
Plan settlements	(10.8		)	—
Foreign currency translation	29.5			(30.8		)
Fair value at end of year	$	272.2		$	247.6

(in millions)	Fiscal 2018			Fiscal 2017
Change in benefit obligation:
Benefit obligation at beginning of year	$	215.7		$	214.9
Service cost	2.1			2.0
Past service cost	—			0.5
Interest cost	6.1			7.2
Members’ contributions	0.4			0.6
Actuarial (gain) loss	2.3			24.1
Benefits paid	(8.7		)	(9.9		)
Plan settlements	(10.8		)	0.0
Foreign currency translation	25.3			(23.7		)
Benefit obligation at end of year	$	232.4		$	215.7
Funded status at end of year	$	39.8		$	31.9

(in millions)	February 3, 2018		January 28, 2017
Amounts recognized in the balance sheet consist of:
Non-current assets	$	39.8	$	31.9

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

(in millions)	February 3, 2018			January 28, 2017			January 30, 2016
Net actuarial losses	$	(51.1	)	$	(55.5	)	$	(43.1	)
Net prior service credits	2.4			9.2			11.1

The estimated actuarial losses and prior service credits for the UK Plan that will be amortized from AOCI into net periodic pension cost over the next fiscal year are $(1.1) million and $0.2 million, respectively.

The accumulated benefit obligation for the UK Plan was $231.1 million and $208.0 million as of February 3, 2018 and January 28, 2017, respectively.

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

(in millions)	Fiscal 2018			Fiscal 2017			Fiscal 2016
Components of net periodic pension benefit (cost):
Service cost	$	(2.1	)	$	(2.0	)	$	(2.6	)
Interest cost	(6.1		)	(7.2		)	(7.7		)
Expected return on UK Plan assets	9.4			10.4			11.5
Amortization of unrecognized actuarial losses	(2.8		)	(1.5		)	(3.4		)
Amortization of unrecognized net prior service credits	1.4			1.9			2.2
Net curtailment gain and settlement loss	3.7			—			—
Net periodic pension benefit	$	3.5		$	1.6		$	—
Other changes in assets and benefit obligations recognized in OCI	(2.9		)	(17.8		)	14.4
Total recognized in net periodic pension benefit (cost) and OCI	$	0.6		$	(16.2	)	$	14.4

	February 3, 2018		January 28, 2017
Assumptions used to determine benefit obligations (at the end of the year):
Discount rate	2.60	%	2.90	%
Salary increases	2.50	%	2.00	%
Assumptions used to determine net periodic pension costs (at the start of the year):
Discount rate	2.90	%	3.60	%
Expected return on UK Plan assets	3.80	%	4.20	%
Salary increases	2.00	%	2.50	%

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 allocate funds to a diverse portfolio of investments, including UK and overseas equities, diversified growth funds, UK corporate bonds, open-ended funds and commercial property. The commercial property investment is through a Pooled Pensions Property Fund that provides a diversified portfolio of property assets. As of February 3, 2018, the target allocation for the UK Plan’s assets was bonds 53%, diversified growth funds 34%, equities 8% 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 3, 2018 and January 28, 2017 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

The methods Signet uses to determine fair value on an instrument-specific basis are detailed below:

	Fair value measurements as of February 3, 2018								Fair value measurements as of January 28, 2017
(in millions)	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)
Asset category:
Diversified equity securities	$	24.0	$	—	$	24.0	$	—	$	22.3	$	—	$	22.3	$	—
Diversified growth funds	96.3		49.4		46.9		—		80.9		40.7		40.2		—
Fixed income – government bonds	83.9		—		83.9		—		81.0		—		81.0		—
Fixed income – corporate bonds	52.6		—		52.6		—		48.1		—		48.1		—
Property	14.3		—		—		14.3		11.8		—		—		11.8
Cash	1.1		1.1		—		—		3.5		3.5		—		—
Total	$	272.2	$	50.5	$	207.4	$	14.3	$	247.6	$	44.2	$	191.6	$	11.8

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. Property investments are classified in Level 3 of the fair value hierarchy.

The table below sets forth changes in the fair value of the Level 3 investment assets in Fiscal 2018 and Fiscal 2017:

(in millions)	Significant unobservable inputs (Level 3)
Balance as of January 30, 2016	$	13.0
Actual return on assets	(1.2		)
Balance as of January 28, 2017	$	11.8
Actual return on assets	2.5
Balance as of February 3, 2018	$	14.3

Signet contributed $3.2 million to the UK Plan in Fiscal 2018 and expects to contribute a minimum of $2.8 million to the UK Plan in Fiscal 2019. 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, 2015.

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

(in millions)	Expected benefit payments
Fiscal 2019	$	9.6
Fiscal 2020	9.5
Fiscal 2021	10.0
Fiscal 2022	10.3
Fiscal 2023	10.3
Thereafter	$	53.4

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 2018 were $2.6 million (Fiscal 2017: $1.8 million; Fiscal 2016: $2.0 million).

In the US, Signet operates 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. Signet’s contributions to this plan in Fiscal 2018 were $10.0 million (Fiscal 2017: $14.6 million; Fiscal 2016: $8.3 million). The Company 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 2018 was $3.8 million (Fiscal 2017: $4.6 million; Fiscal 2016: $2.9 million).

The fair value of the assets in the two unfunded, non-qualified deferred compensation plans at February 3, 2018 and January 28, 2017 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 as of February 3, 2018						Fair value measurements as of January 28, 2017
(in millions)	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)
Assets:
Corporate-owned life insurance plans	$	7.3	$	—	$	7.3	$	7.5	$	—	$	7.5
Money market funds	30.2		30.2		—		29.6		29.6		—
Total assets	$	37.5	$	30.2	$	7.3	$	37.1	$	29.6	$	7.5

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Loans, Overdrafts and Long-Term Debt

12 Months Ended

Feb. 03, 2018

Debt Disclosure [Abstract]

Loans, overdrafts and long-term debt

Loans, overdrafts and long-term debt

(in millions)	February 3, 2018			January 28, 2017
Debt:
Senior unsecured notes due 2024, net of unamortized discount	$	398.9		$	398.8
Securitization facility	—			600.0
Senior unsecured term loan	326.2			348.6
Revolving credit facility	—			56.0
Bank overdrafts	14.2			14.2
Total debt	$	739.3		$	1,417.6
Less: Current portion of loans and overdrafts	(44.0		)	(91.1		)
Less: Unamortized capitalized debt issuance fees	(7.1		)	(8.6		)
Total long-term debt	$	688.2		$	1,317.9

Revolving credit facility and term loan (the “Credit Facility”)

During the second quarter of Fiscal 2017, Signet amended and restated its Credit Facility agreement to (i) increase the borrowing capacity under the revolving credit facility from $400 million to $700 million and extend the maturity date to July 2021 and (ii) extend the maturity date of the term loan facility to July 2021 and revise the scheduled quarterly principal repayments to align with the July 2021 maturity date. The amendment of the Credit Facility was accounted for as a modification of existing debt in accordance with ASC Topic 470-50, “Debt Modifications and Extinguishments.”

In connection with the amendment of the revolving credit facility, incremental fees of $1.4 million were incurred and capitalized. Capitalized fees associated with the amended revolving credit facility as of February 3, 2018 total $2.6 million with the unamortized balance recorded as an asset within the consolidated balance sheets. Accumulated amortization related to these capitalized fees as of February 3, 2018 was $1.2 million (January 28, 2017: $0.8 million). Amortization relating to these fees of $0.4 million and $0.4 million was recorded as interest expense in the consolidated income statements for Fiscal 2018 and Fiscal 2017, respectively. As of February 3, 2018 and January 28, 2017, the Company had stand-by letters of credit outstanding of $15.7 million and $15.3 million, respectively, that reduce remaining borrowing availability. The revolving credit facility had a weighted average interest rate of 2.46% and 1.71% during Fiscal 2018 and Fiscal 2017, respectively.

The senior unsecured term loan had an outstanding principal balance of $357.5 million as of the amendment date. Beginning in October 2016, the Company is required to make scheduled quarterly principal payments equal to the amounts per annum of the outstanding principal balance as follows: 5% in the first year, 7.5% in the second year, 10% in the third year, 12.5% in the fourth year and 15% in the fifth year after the initial payment date, with the balance due in July 2021. Excluding the impact of the interest rate swap designated as a cash flow hedge discussed in Note 18, the term loan had a weighted average interest rate of 2.42% and 1.78% during Fiscal 2018 and Fiscal 2017, respectively.

In connection with the amendment of the term loan facility, incremental fees of $0.7 million were incurred and capitalized. Capitalized fees associated with the amended term loan facility as of February 3, 2018 total $6.2 million with the unamortized balance recorded as a direct deduction from the outstanding liability within the consolidated balance sheets. Accumulated amortization related to these capitalized fees as of February 3, 2018 was $3.5 million (January 28, 2017: $2.7 million). Amortization relating to these fees of $0.8 million and $0.9 million was recorded as interest expense in the consolidated income statements Fiscal 2018 and Fiscal 2017, respectively.

Borrowings under the Credit Facility bear interest at a rate per annum equal to an applicable margin, plus, at the Company’s option, either (a) a base rate or (b) a LIBOR rate. The Credit Facility provides that the Company may voluntarily repay outstanding loans at any time without premium or penalty other than reimbursement of the lender’s redeployment and breakage costs in certain cases. In addition, the Credit Facility contains various customary representations and warranties, financial reporting requirements and other affirmative and negative covenants. The Company is required to maintain at all times a leverage ratio of no greater than 2.50 to 1.00 and a fixed charge coverage ratio of no less than 1.40 to 1.00, both determined as of the end of each fiscal quarter for the trailing twelve months.

Senior unsecured notes due 2024

On May 19, 2014, Signet UK Finance plc (“Signet UK Finance”), a wholly owned subsidiary of the Company, issued $400 million aggregate principal amount of its 4.70% senior unsecured notes due in 2024 (the “Notes”). The Notes were issued under an effective registration statement previously filed with the SEC. Interest on the notes is payable semi-annually on June 15 and December 15 of each year, commencing December 15, 2014. The Notes are jointly and severally guaranteed, on a full and unconditional basis, by the Company and by certain of the Company’s wholly owned subsidiaries (such subsidiaries, the “Guarantors”). See Note 27 for additional information. The Notes were issued pursuant to a base indenture among the Company, Signet UK Finance, the Guarantors and Deutsche Bank Trust Company Americas as trustee, with the indenture containing customary covenants and events of default provisions. The Company received proceeds from the offering of approximately $393.9 million, which were net of underwriting discounts, commissions and offering expenses.

Capitalized fees relating to the senior unsecured notes total $7.0 million. Accumulated amortization related to these capitalized fees as of February 3, 2018 was $2.6 million (January 28, 2017: $1.9 million). The remaining unamortized capitalized fees are recorded as a direct deduction from the outstanding liability within the consolidated balance sheets. Amortization relating to these fees of $0.7 million and $0.7 million was recorded as interest expense in the consolidated income statements for Fiscal 2018 and Fiscal 2017, respectively.

Asset-backed securitization facility

The Company sold an undivided interest in certain credit card receivables to Sterling Jewelers Receivables Master Note Trust (the “Issuer”) and issued two-year revolving asset-backed variable funding notes. As a condition of closing the credit transaction disclosed in Note 3, during the third quarter of Fiscal 2018, the Company terminated the asset-backed securitization facility, which had a principal balance outstanding of $600 million, in order to transfer the receivables free and clear. Unamortized capitalized fees of $0.2 million associated with the asset-backed securitization facility were written-off during the third quarter of Fiscal 2018. Capitalized fees previously totaled $3.4 million, offset by accumulated amortization of $3.4 million as of February 3, 2018 (January 28, 2017: $3.1 million). Amortization relating to these fees of $0.3 million and $0.7 million was recorded as interest expense in the consolidated income statements for Fiscal 2018 and Fiscal 2017, respectively. The asset-backed securitization facility had a weighted average interest rate of 2.50% and 2.05% during Fiscal 2018 and Fiscal 2017, respectively.

Unsecured term loan (the “Bridge Loan”)

In conjunction with the acquisition of R2Net, Signet entered into a $350 million unsecured term loan to finance the transaction. The Company executed and repaid the Bridge Loan during the 13 weeks ended October 28, 2017. The Bridge Loan contained customary fees in addition to interest incurred on borrowings. Fees incurred of $1.4 million and interest of $0.9 million relating to the Bridge Loan were expensed during Fiscal 2018.

Other

As of February 3, 2018 and January 28, 2017, the Company was in compliance with all debt covenants.

As of February 3, 2018 and January 28, 2017, there were $14.2 million and $14.2 million in overdrafts, which represent issued and outstanding checks where no bank balances exist with the right of offset.

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Accrued Expenses and Other Current Liabilities

12 Months Ended

Feb. 03, 2018

Payables and Accruals [Abstract]

Accrued expenses and other current liabilities

Accrued expenses and other current liabilities

(in millions)	February 3, 2018		January 28, 2017
Accrued compensation	$	68.3	$	105.8
Other liabilities	34.7		33.0
Other taxes	36.3		45.1
Payroll taxes	11.8		9.9
Accrued expenses	296.9		284.4
Total accrued expenses and other current liabilities	$	448.0	$	478.2

The sales returns reserve, included in accrued expenses, is as follows:

(in millions)	Fiscal 2018		Fiscal 2017			Fiscal 2016
Sales return reserve, beginning of period	$	13.0	$	14.0		$	15.3
Net adjustment(1)	0.5		(1.0		)	(1.3		)
Sales return reserve, end of period	$	13.5	$	13.0		$	14.0

⁽¹⁾     Net adjustment relates to sales returns previously provided for, changes in estimate and the impact of foreign exchange translation.

Sterling Jewelers and Zale Jewelry segments provide a product lifetime diamond 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, the Company 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. Sterling Jewelers also provides a similar product lifetime guarantee on color gemstones. The warranty reserve for diamond and gemstone guarantee, included in accrued expenses and other current liabilities and other non-current liabilities, is as follows:

(in millions)	Fiscal 2018			Fiscal 2017			Fiscal 2016
Warranty reserve, beginning of period	$	40.0		$	41.9		$	44.9
Warranty expense	8.5			11.5			10.8
Utilized(1)	(11.3		)	(13.4		)	(13.8		)
Warranty reserve, end of period	$	37.2		$	40.0		$	41.9

⁽¹⁾  Includes impact of foreign exchange translation.

(in millions)	February 3, 2018		January 28, 2017
Disclosed as:
Current liabilities(1)	$	11.5	$	13.0
Non-current liabilities (see Note 23)	25.7		27.0
Total warranty reserve	$	37.2	$	40.0

⁽¹⁾  Included within accrued expenses above.

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Deferred Revenue

12 Months Ended

Feb. 03, 2018

Deferred Revenue Disclosure [Abstract]

Deferred Revenue

Deferred revenue

Deferred revenue is comprised primarily of ESP and voucher promotions and other as follows:

(in millions)	February 3, 2018		January 28, 2017
Sterling Jewelers ESP deferred revenue	$	738.0	$	737.4
Zale ESP deferred revenue	178.1		168.2
Voucher promotions and other	41.4		30.3
Total deferred revenue	$	957.5	$	935.9
Disclosed as:
Current liabilities	$	288.6	$	276.9
Non-current liabilities	668.9		659.0
Total deferred revenue	$	957.5	$	935.9

ESP deferred revenue

(in millions)	Fiscal 2018			Fiscal 2017
Sterling Jewelers ESP deferred revenue, beginning of period	$	737.4		$	715.1
Plans sold	269.2			290.8
Revenue recognized	(268.6		)	(268.5		)
Sterling Jewelers ESP deferred revenue, end of period	$	738.0		$	737.4

(in millions)	Fiscal 2018			Fiscal 2017
Zale ESP deferred revenue, beginning of period	$	168.2		$	146.1
Plans sold(1)	140.1			150.1
Revenue recognized	(130.2		)	(128.0		)
Zale ESP deferred revenue, end of period	$	178.1		$	168.2

⁽¹⁾  Includes impact of foreign exchange translation.

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Other Liabilities-Non-Current

12 Months Ended

Feb. 03, 2018

Other Liabilities Disclosure [Abstract]

Other liabilities-non-current

Other liabilities—non-current

(in millions)	February 3, 2018		January 28, 2017
Straight-line rent	$	91.2	$	87.2
Deferred compensation	32.2		40.7
Warranty reserve	25.7		27.0
Lease loss reserve	1.2		1.3
Other liabilities	89.3		57.5
Total other liabilities	$	239.6	$	213.7

A lease loss reserve is recorded for the net present value of the difference between the contractual rent obligations and sublease income expected from the properties. 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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Share-Based Compensation

12 Months Ended

Feb. 03, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Compensation

Share-based compensation

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

Impact on results

Share-based compensation expense and the associated tax benefits recognized in the consolidated income statements are as follows:

(in millions)	Fiscal 2018			Fiscal 2017			Fiscal 2016
Share-based compensation expense	$	16.1		$	8.0		$	16.4
Income tax benefit	$	(5.3	)	$	(2.8	)	$	(5.9	)

As of February 3, 2018, unrecognized compensation cost related to unvested awards granted under share-based compensation plans is as follows:

	Unrecognized Compensation Cost		Weighted average period
	(in millions)
Omnibus Plan	$	27.6	2.0 years
Share Saving Plans	4.1		1.7 years
Total	$	31.7

Since April 2012, the Company has 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.

Omnibus Plan

In June 2009, 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 2018, Fiscal 2017 and Fiscal 2016 awards granted under the Omnibus Plan have two elements, time-based restricted stock and performance-based RSUs. The time-based restricted stock has a three year 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 RSUs granted include two performance measures, operating income (subject to certain adjustments) and return on capital employed (“ROCE”), with ROCE measure only applicable to senior executives. For both performance measures, cumulative results achieved during the relevant three year performance period are compared to target metrics 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 2018			Fiscal 2017			Fiscal 2016
Share price	$	65.74		$	109.03		$	136.37
Risk free interest rate	1.4		%	1.0		%	0.8		%
Expected term	2.7 years			2.8 years			2.9 years
Expected volatility	32.3		%	28.5		%	25.4		%
Dividend yield	2.1		%	1.1		%	0.7		%
Fair value	$	63.42		$	106.48		$	134.46

The risk-free interest rate is based on the US Treasury (for US-based award recipients in all fiscal years and UK-based award recipients in Fiscal 2018 and Fiscal 2017) or UK Gilt (for UK-based award recipients in Fiscal 2016) 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 expected term of the award.

The Fiscal 2018 activity for awards granted under the Omnibus Plan is as follows:

	Omnibus Plans
(in millions, except per share amounts)	No. of shares		Weighted average grant date fair value		Weighted average remaining contractual life	Intrinsic value(1)
Outstanding at January 28, 2017	0.7		$	111.98	1.3 years	$	53.0
Fiscal 2018 activity:
Granted	0.9		63.42
Vested	(0.1	)	105.76
Lapsed	(0.4	)	84.41
Outstanding at February 3, 2018	1.1		$	82.65	1.5 years	$	55.0

⁽¹⁾  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:

(in millions)	Fiscal 2018		Fiscal 2017		Fiscal 2016
Total intrinsic value of awards vested	$	7.1	$	13.6	$	22.2

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 Plan and Irish Sharesave Plan allow eligible employees to purchase common shares at a discount of approximately 20% below a determined market price based on the New York 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 2018			Fiscal 2017			Fiscal 2016
Share price	$	59.84		$	84.37		$	139.18
Exercise price	$	52.00		$	67.24		$	114.67
Risk free interest rate	1.2		%	0.6		%	0.7		%
Expected term	2.7 years			2.7 years			2.6 years
Expected volatility	37.0		%	31.3		%	27.1		%
Dividend yield	2.7		%	1.7		%	0.8		%
Fair value	$	15.22		$	22.82		$	34.76

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 expected term of the awards.

The Fiscal 2018 activity for awards granted under the Share Saving Plans is as follows:

	Share Saving Plans
(in millions, except per share amounts)	No. of shares		Weighted average exercise price		Weighted average remaining contractual life	Intrinsic value(1)
Outstanding at January 28, 2017	0.3		$	74.30	2.0 years	$	3.0
Fiscal 2018 activity:
Granted	0.1		52.00
Exercised	—		46.55
Lapsed	(0.1	)	82.91
Outstanding at February 3, 2018	0.3		$	62.80	1.8 years	$	—
Exercisable at January 28, 2017	—		$	—		$	—
Exercisable at February 3, 2018	—		$	—		$	—

⁽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:

(in millions, except per share amounts)	Fiscal 2018		Fiscal 2017		Fiscal 2016
Weighted average grant date fair value per share of awards granted	$	15.22	$	22.82	$	34.76
Total intrinsic value of options exercised	$	0.1	$	1.5	$	6.4
Cash received from share options exercised	$	0.3	$	1.4	$	4.0

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Commitments and Contingencies

12 Months Ended

Feb. 03, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and contingencies

Commitments and contingencies

Operating leases

Signet occupies certain properties and holds machinery and vehicles under operating leases. Rental expense for operating leases is as follows:

(in millions)	Fiscal 2018			Fiscal 2017			Fiscal 2016
Minimum rentals	$	528.1		$	524.4		$	525.7
Contingent rent	8.5			10.2			15.3
Sublease income	(0.5		)	(0.6		)	(0.7		)
Total	$	536.1		$	534.0		$	540.3

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 2019	$	460.3
Fiscal 2020	405.3
Fiscal 2021	371.4
Fiscal 2022	328.8
Fiscal 2023	284.8
Thereafter	907.3
Total	$	2,757.9

Contingent property liabilities

Approximately 19 property leases had been assigned in the UK by Signet at February 3, 2018 (and remained unexpired and occupied by assignees at that date) and approximately 10 additional properties were sub-leased in the US and UK 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-leased, Signet or one of its 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 3, 2018 Signet has committed to spend $46.9 million (January 28, 2017: $48.4 million) related to capital commitments. These commitments principally relate to the expansion and renovation of stores.

Legal proceedings

Employment practices

As previously reported, in March 2008, a group of private plaintiffs (the “Claimants”) filed a class action lawsuit for an unspecified amount against SJI, a subsidiary of Signet, in the US 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. The Claimants filed a motion for class certification and SJI opposed the motion.  On February 2, 2015, the arbitrator issued a Class Determination Award in which she certified for a class-wide hearing Claimants’ disparate impact declaratory and injunctive relief class claim under Title VII, with a class period of July 22, 2004 through date of trial for the Claimants’ compensation claims and December 7, 2004 through date of trial for Claimants’ promotion claims. The arbitrator otherwise denied Claimants’ motion to certify a disparate treatment class alleged under Title VII, denied a disparate impact monetary damages class alleged under Title VII, and denied an opt-out monetary damages class under the Equal Pay Act. On February 9, 2015, Claimants filed an Emergency Motion To Restrict Communications With The Certified Class And For Corrective Notice. SJI filed its opposition to Claimants’ emergency motion on February 17, 2015, and a hearing was held on February 18, 2015. Claimants’ motion was granted in part and denied in part in an order issued on March 16, 2015. Claimants filed a Motion for Reconsideration Regarding Title VII Claims for Disparate Treatment in Compensation on February 11, 2015, which SJI opposed. April 27, 2015, the arbitrator issued an order denying the Claimants’ Motion. SJI filed with the US District Court for the Southern District of New York a Motion to Vacate the Arbitrator’s Class Certification Award on March 3, 2015, which Claimants opposed. On November 16, 2015, the US District Court for the Southern District of New York granted SJI’s Motion to Vacate the Arbitrator’s Class Certification Award in part and denied it in part. On December 3, 2015, SJI filed with the United States Court of Appeals for the Second Circuit SJI’s Notice of Appeal of the District Court’s November 16, 2015 Opinion and Order. On November 25, 2015, SJI filed a Motion to Stay the AAA Proceedings while SJI appeals the decision of the US District Court for the Southern District of New York to the United States Court of Appeals for the Second Circuit, which Claimants opposed. The arbitrator issued an order denying SJI’s Motion to Stay on February 22, 2016.SJI filed its Brief and Special Appendix with the Second Circuit on March 16, 2016. The matter was fully briefed and oral argument was heard by the U.S. Court of Appeals for the Second Circuit on November 2, 2016. On April 6, 2015, Claimants filed in the AAA Claimants’ Motion for Clarification or in the Alternative Motion for Stay of the Effect of the Class Certification Award as to the Individual Intentional Discrimination Claims, which SJI opposed. On June 15, 2015, the arbitrator granted the Claimants’ motion. On March 6, 2017, Claimants filed Claimants’ Motion for Conditional Certification of Claimants’ Equal Pay Act Claims and Authorization of Notice, which SJI opposed The arbitrator heard oral argument on Claimants’ Motion on December 18, 2015 and, on February 29, 2016, issued an Equal Pay Act Collective Action Conditional Certification Award and Order Re Claimants’ Motion For Tolling Of EPA Limitations Period, conditionally certifying Claimants’ Equal Pay Act claims as a collective action, and tolling the statute of limitations on EPA claims to October 16, 2003 to ninety days after notice issues to the putative members of the collective action. SJI filed in the AAA a Motion To Stay Arbitration Pending The District Court’s Consideration Of Respondent’s Motion To Vacate Arbitrator’s Equal Pay Act Collective Action Conditional Certification Award And Order Re Claimants’ Motion For Tolling Of EPA Limitations Period on March 10, 2016. SJI filed in the AAA a Renewed Motion To Stay Arbitration Pending The District Court’s Resolution Of Sterling’s Motion To Vacate Arbitrator’s Equal Pay Act Collective Action Conditional Certification Award And Order Re Claimants’ Motion For Tolling Of EPA Limitations Period on March 31, 2016, which Claimants opposed. On April 5, 2016, the arbitrator denied SJI’s Motion. On March 23, 2016 SJI filed with the US District Court for the Southern District of New York a Motion To Vacate The Arbitrator’s Equal Pay Act Collective Action Conditional Certification Award And Order Re Claimants’ Motion For Tolling Of EPA Limitations Period, which Claimants opposed. SJI’s Motion was denied on May 22, 2016. On May 31, 2016, SJI filed a Notice Of Appeal of Judge Rakoff’s opinion and order to the Second Circuit Court of Appeals, which Claimant’s opposed. On June 1, 2017, the Second Circuit Court of Appeals dismissed SJI’s appeal for lack of appellate jurisdiction. Claimants filed a Motion For Amended Class Determination Award on November 18, 2015, and on March 31, 2016 the arbitrator entered an order amending the Title VII class certification award to preclude class members from requesting exclusion from the injunctive and declaratory relief class certified in the arbitration. The arbitrator issued a Bifurcated Case Management Plan on April 5, 2016, and ordered into effect the parties’ Stipulation Regarding Notice Of Equal Pay Act Collective Action And Related Notice Administrative Procedures on April 7, 2016. SJI filed in the AAA a Motion For Protective Order on May 2, 2016, which Claimants opposed. The matter was fully briefed and oral argument was heard on July 22, 2016. The motion was granted in part on January 27, 2017. Notice to EPA collective action members was issued on May 3, 2016, and the opt-in period for these notice recipients closed on August 1, 2016. Approximately, 10,314 current and former employees submitted consent forms to opt in to the collective action; however, some have withdrawn their consents. The number of valid consents is disputed and yet to be determined. SJI believes the number of valid consents to be approximately 9,124. On July 24, 2017, the United States Court of Appeals for the Second Circuit issued its unanimous Summary Order that held that the absent class members “never consented” to the Arbitrator determining the permissibility of class arbitration under the agreements, and remanded the matter to the District Court to determine whether the Arbitrator exceeded her authority by certifying the Title VII class that contained absent class members who had not opted in the litigation. On August 7, 2017, SJI filed its Renewed Motion to Vacate the Class Determination Award relative to absent class members with the District Court. The matter was fully briefed and an oral argument was heard on October 16, 2017. On January 15, 2018, District Court granted SJI’s Motion finding that the Arbitrator exceeded her authority by binding non-parties (absent class members) to the Title VII claim. The District Court further held that the RESOLVE Agreement does not permit class action procedures, thereby, reducing the Claimants in the Title VII matter from 70,000 to 254. Claimants dispute that the number of claimants in the Title VII is 254. On January 18, 2018, the Claimants filed a Notice of Appeal with the United States Court of Appeals for the Second Circuit. The appeal will be fully briefed by April 16, 2018. The Second Circuit has scheduled oral argument for May 7, 2018, on this appeal. On November 10, 2017, SJI filed in the arbitration motions for summary judgment, and for decertification, of Claimants’ Equal Pay Act and Title VII promotions claims. On January 30, 2018, oral argument on SJI’s motions was heard. On January 26, 2018, SJI filed a Motion to Vacate The Equal Pay Act Collective Action Award And Tolling Order asserting that the Arbitrator exceeded her authority by conditionally certifying the Equal Pay Act claim and allowing the absent claimants to opt-in the litigation. On March 12, 2018, the Arbitrator denied SJI’s Motion to Vacate The Equal Pay Act Collective Action Award and Tolling Order. SJI still has a pending motion seeking decertification of the EPA Collective Action before the Arbitrator. On March 19, 2018, the Arbitrator issued an Order partially granting SJI’s Motion to Amend the Arbitrator’s November 2, 2017, Bifurcated Seventh Amended Case Management Plan resulting in a continuance of the May 14, 2018 trial date. A new trial date has not been set.

SJI denies the allegations of the Claimants and has been defending the case vigorously. At this point, no outcome or possible loss or range of losses, if any, arising from the litigation is able to be estimated.

Also, as previously reported, on September 23, 2008, the US Equal Employment Opportunity Commission (“EEOC”) filed a lawsuit against SJI in the US District Court for the Western District of New York. This suit was settled on May 5, 2017, as further described below. The EEOC’s lawsuit alleged that SJI 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 asserted 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, SJI 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 SJI’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 SJI 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 11, 2014 entered an order dismissing the action with prejudice. On May 12, 2014, the EEOC filed its Notice of Appeal of the District Court Judge’s dismissal of the action to United States Court of Appeals for the Second Circuit. The parties fully briefed the appeal and oral argument occurred on May 5, 2015. On September 9, 2015, the United States Court of Appeals for the Second Circuit issued a decision vacating the District Court’s order and remanding the case back to the District Court for further proceedings. SJI filed a Petition for Panel Rehearing and En Banc Review with the United States Court of Appeals for the Second Circuit, which was denied on December 1, 2015. On December 4, 2015, SJI filed in the United States Court of Appeals for the Second Circuit a Motion Of Appellee Sterling Jewelers Inc. For Stay Of Mandate Pending Petition For Writ Of Certiorari. The Motion was granted by the Second Circuit on December 10, 2015. SJI filed a Petition For Writ Of Certiorari in the Supreme Court of the United States on April 29, 2016, which was denied. The case was remanded to the Western District of New York and on November 2, 2016, the Court issued a case scheduling order. On January 25, 2017, the parties filed a joint motion to extend case scheduling order deadlines. The motion was granted on January 27, 2017. On May 5, 2017 the U.S. District Court for the Western District of New York approved and entered the Consent Decree jointly proposed by the EEOC and SJI, resolving all of the EEOC’s claims against SJI in this litigation for various injunctive relief including but not limited to the appointment of an employment practices expert to review specific policies and practices, a compliance officer to be employed by SJI, as well as obligations relative to training, notices, reporting and record-keeping. The Consent Decree does not require an outside third party monitor or require any monetary payment. The duration of the Consent Decree is three years and three months, expiring on August 4, 2020.

On May 12, 2017, SJI received notice that a Class Action Complaint against SJI and Signet Jewelers Ltd. (improperly named as a party) was filed by Veronica Masten in the Superior Court of California, County of Los Angeles, alleging violations of various wage and hour labor laws. The claims include: (1) failure to pay overtime; (2) failure to provide meal periods; (3) failure to reimburse business expenses; (4) failure to provide itemized wage statements; (5) failure to timely pay wages; and a derivative claims for (6) unfair competition. SJI filed its Answer to the Complaint on June 13, 2017. On June 14, 2017, SJI removed this matter to the United States District Court for the Central District of California. After engaging in limited discovery, Plaintiff agreed to pursue her claims on an individual basis in a separate forum, and sought to dismiss her claims in this action without prejudice. Plaintiff filed a request for dismissal with the district court on December 18, 2017. The Court has not yet formally ruled on the dismissal, however, the Court’s docket indicates that the matter is closed. 

Shareholder Actions

In August 2016, two alleged Company shareholders each filed a putative class action complaint in the United States District Court for the Southern District of New York against the Company and its then-current Chief Executive Officer and current Chief Financial Officer (Nos. 16-cv-6728 and 16-cv-6861, the “S.D.N.Y. cases”). On September 16, 2016, the Court consolidated the S.D.N.Y. cases under case number 16-cv-6728. On April 3, 2017, the plaintiffs filed a second amended complaint, purportedly on behalf of persons that acquired the Company’s securities on or between August 29, 2013, and February 27, 2017, naming as defendants the Company, its then-current and former Chief Executive Officers, and its current and former Chief Financial Officers. The second amended complaint alleged that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by, among other things, misrepresenting the Company’s business and earnings by (i) failing to disclose that the Company was allegedly having issues ensuring the safety of customers’ jewelry while in the Company’s custody for repairs, which allegedly damaged customer confidence; (ii) making misleading statements about the Company’s credit portfolio; and (iii) failing to disclose reports of sexual harassment allegations that were raised by claimants in an ongoing pay and promotion gender discrimination class arbitration (the “Arbitration”). The second amended complaint alleged that the Company’s share price was artificially inflated as a result of the alleged misrepresentations and sought unspecified compensatory damages and costs and expenses, including attorneys’ and experts’ fees.

In March 2017, two other alleged Company shareholders each filed a putative class action complaint in the United States District Court for the Northern District of Texas against the Company and its then-current and former Chief Executive Officers (Nos. 17-cv-875 and 17-cv-923, the “N.D. Tex. cases”). Those complaints were nearly identical to each other and alleged that the defendants’ statements concerning the Arbitration violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The N.D. Tex. cases were subsequently transferred to the Southern District of New York and consolidated with the S.D.N.Y. cases (the “Consolidated Action”). On July 27, 2017, the Court appointed a lead plaintiff and lead plaintiff’s counsel in the Consolidated Action. On August 3, 2017, the Court ordered the lead plaintiff in the Consolidated Action to file a third amended complaint by September 29, 2017. On September 29, 2017, the lead plaintiff filed a third amended complaint that covered a putative class period of August 29, 2013, through May 24, 2017, and that asserted substantially similar claims to the second amended complaint, except that it omitted the claim based on defendants’ alleged misstatements concerning the security of customers’ jewelry while in the Company’s custody for repairs. The defendants moved to dismiss the third amended complaint on December 1, 2017. On December 4, 2017, the Court entered an order permitting the lead plaintiff to amend its complaint as of right by December 22, 2017, and providing that the lead plaintiff would not be given any further opportunity to amend its complaint to address the issues raised in the defendants’ motion to dismiss.

On December 15, 2017, Nebil Aydin filed a putative class action complaint in the United States District Court for the Southern District of New York against the Company and its current Chief Executive Officer and Chief Financial Officer (No. 17-cv-9853). The Aydin complaint alleged that the defendants made misleading statements regarding the Company’s credit portfolio between August 24, 2017, and November 21, 2017, in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and sought unspecified compensatory damages and costs and expenses, including attorneys’ and experts’ fees. On January 7, 2018, the Aydin case was consolidated into the Consolidated Action.

On December 22, 2017, the lead plaintiff in the Consolidated Action filed its fourth amended complaint, which asserted substantially the same claims as its third amended complaint for an expanded class period of August 28, 2013, through December 1, 2017. On January 26, 2017, the defendants moved to dismiss the fourth amended complaint. This motion was fully briefed as of March 9, 2018.

On March 20, 2018, the Court granted the lead plaintiff leave to file a fifth amended complaint. On March 22, 2018, the lead plaintiff in the Consolidated Action filed its fifth amended complaint which asserts substantially the same claims as its fourth amended complaint for an expanded class period of August 29, 2013, through March 13, 2018. The prior motion to dismiss was denied as moot. The defendants will file a new motion to dismiss the fifth amended complaint by March 30, 2018.

Derivative Action

On September 1, 2017, Josanne Aungst filed a putative shareholder derivative action entitled Aungst v. Light, et al., No. CV-2017-3665, in the Court of Common Pleas for Summit County Ohio. The complaint in this action, which purports to have been brought by Ms. Aungst on behalf of the Company, names certain current and former directors and officers of the Company as defendants and alleges claims for breach of fiduciary duty, abuse of control, and gross mismanagement.  The complaint challenges certain public disclosures and conduct relating to the allegations that were raised by the claimants in the Arbitration. The complaint also alleges that the Company’s share price was artificially inflated as a result of alleged misrepresentations and omissions. The complaint seeks money damages on behalf of the Company, changes to the Company’s corporate governance, and other equitable relief, as well as plaintiff’s legal fees and costs. The defendants’ motion to dismiss the complaint is fully briefed and awaiting decision.

The Company believes that the claims brought in these shareholder actions are without merit and cannot estimate a range of potential liability, if any, at this time.

Regulatory Matters

On September 6, 2017, the Consumer Financial Protection Bureau (“CFPB”) notified Signet that, in accordance with the CFPB’s discretionary Notice and Opportunity to Respond and Advise (“NORA”) process, the CFPB’s Office of Enforcement is considering recommending that the CFPB take legal action against Signet, alleging that Signet violated §§ 1031 and 1036 of the Consumer Financial Protection Act of 2010, 12 U.S.C. §§ 5531, 5536, and the Truth in Lending Act, 15 U.S.C. § 1601 et seq., and its implementing regulation, relating to in-store: credit practices, promotions, and payment protection products. The purpose of a NORA letter is to provide a party being investigated an opportunity to present its position to the CFPB before an enforcement action is recommended or commenced. This notice stems from an inquiry that commenced in late 2016 when Signet received and responded to an initial Civil Investigative Demand. Signet has cooperated and continues to fully cooperate with the CFPB. On September 27, 2017, Signet submitted a response to the NORA letter to the CFPB, which stated its belief that the potential claims lack merit.

The Attorney General for the State of New York (“NYAG”) is investigating similar issues under its jurisdiction. Signet has been cooperating with the NYAG’s investigation which remains ongoing.

Signet is currently unable to predict the timing or outcome of the NORA process or NYAG investigation. Signet continues to believe that its acts and practices relating to the matters under investigation are lawful and, as such, has concluded the possibility of an unfavorable outcome was remote as of February 3, 2018.

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 believes are not significant to Signet’s consolidated financial position, results of operations or cash flows.

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Condensed Consolidating Financial Information

12 Months Ended

Feb. 03, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed consolidating financial information

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 have guaranteed the obligations under certain debt securities that have been 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 condensed consolidating financial 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 intra-entity activity and balances.

Condensed Consolidating Income Statement

For the 53 week period endedFebruary 3, 2018

(in millions)	Signet Jewelers Limited			Signet UK Finance plc			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Sales	$	—		$	—		$	5,866.6		$	386.4		$	—		$	6,253.0
Cost of sales	—			—			(3,926.6		)	(136.4		)	—			(4,063.0		)
Gross margin	—			—			1,940.0			250.0			—			2,190.0
Selling, general and administrative expenses	(1.9		)	—			(1,738.2		)	(132.1		)	—			(1,872.2		)
Credit transaction, net	—			—			1.3			—			—			1.3
Other operating income, net	0.1			—			260.3			0.4			—			260.8
Operating (loss) income	(1.8		)	—			463.4			118.3			—			579.9
Intra-entity interest income (expense)	—			18.8			(190.2		)	171.4			—			—
Interest expense, net	—			(19.9		)	(21.6		)	(11.2		)	—			(52.7		)
(Loss) income before income taxes	(1.8		)	(1.1		)	251.6			278.5			—			527.2
Income taxes	—			0.2			(21.3		)	13.2			—			(7.9		)
Equity in income of subsidiaries	521.1			—			229.6			233.1			(983.8		)	—
Net income (loss)	519.3			(0.9		)	459.9			524.8			(983.8		)	519.3
Dividends on redeemable convertible preferred shares	(32.9		)	—			—			—			—			(32.9		)
Net income (loss) attributable to common shareholders	$	486.4		$	(0.9	)	$	459.9		$	524.8		$	(983.8	)	$	486.4

Condensed Consolidating Income Statement

For the 52 week period endedJanuary 28, 2017

(in millions)	Signet Jewelers Limited			Signet UK Finance plc			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Sales	$	—		$	—		$	6,141.9		$	266.5		$	—		$	6,408.4
Cost of sales	—			—			(3,997.2		)	(50.4		)	—			(4,047.6		)
Gross margin	—			—			2,144.7			216.1			—			2,360.8
Selling, general and administrative expenses	(1.3		)	—			(1,775.1		)	(103.8		)	—			(1,880.2		)
Other operating income, net	—			—			293.8			(11.2		)	—			282.6
Operating (loss) income	(1.3		)	—			663.4			101.1			—			763.2
Intra-entity interest income (expense)	—			18.8			(188.4		)	169.6			—			—
Interest expense, net	—			(19.8		)	(16.6		)	(13.0		)	—			(49.4		)
(Loss) income before income taxes	(1.3		)	(1.0		)	458.4			257.7			—			713.8
Income taxes	—			0.2			(175.1		)	4.3			—			(170.6		)
Equity in income of subsidiaries	544.5			—			276.4			295.7			(1,116.6		)	—
Net income (loss)	543.2			(0.8		)	559.7			557.7			(1,116.6		)	543.2
Dividends on redeemable convertible preferred shares	(11.9		)	—			—			—			—			(11.9		)
Net income (loss) attributable to common shareholders	$	531.3		$	(0.8	)	$	559.7		$	557.7		$	(1,116.6	)	$	531.3

Condensed Consolidating Income Statement

For the 52 week period endedJanuary 30, 2016

(in millions)	Signet Jewelers Limited			Signet UK Finance plc			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Sales	$	—		$	—		$	6,444.8		$	105.4		$	—		$	6,550.2
Cost of sales	—			—			(4,089.3		)	(20.5		)	—			(4,109.8		)
Gross margin	—			—			2,355.5			84.9			—			2,440.4
Selling, general and administrative expenses	(2.2		)	—			(1,942.7		)	(42.7		)	—			(1,987.6		)
Other operating income, net	—			—			254.8			(3.9		)	—			250.9
Operating (loss) income	(2.2		)	—			667.6			38.3			—			703.7
Intra-entity interest income (expense)	—			18.8			(186.0		)	167.2			—			—
Interest expense, net	—			(19.9		)	(14.8		)	(11.2		)	—			(45.9		)
(Loss) income before income taxes	(2.2		)	(1.1		)	466.8			194.3			—			657.8
Income taxes	—			0.2			(192.7		)	2.6			—			(189.9		)
Equity in income of subsidiaries	470.1			—			281.4			293.9			(1,045.4		)	—
Net income (loss)	467.9			(0.9		)	555.5			490.8			(1,045.4		)	467.9
Dividends on redeemable convertible preferred shares	—			—			—			—			—			—
Net income (loss) attributable to common shareholders	$	467.9		$	(0.9	)	$	555.5		$	490.8		$	(1,045.4	)	$	467.9

Condensed Consolidating Statement of Comprehensive Income

For the 53 week period endedFebruary 3, 2018

(in millions)	Signet Jewelers Limited			Signet UK Finance plc			Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Eliminations			Consolidated
Net income (loss)	$	519.3		$	(0.9	)	$	459.9		$	524.8	$	(983.8	)	$	519.3
Other comprehensive (loss) income:
Foreign currency translation adjustments	50.9			—			50.2			0.7		(50.9		)	50.9
Available-for-sale securities:
Unrealized gain (loss)	0.3			—			—			0.3		(0.3		)	0.3
Cash flow hedges:
Unrealized gain (loss)	1.8			—			1.8			—		(1.8		)	1.8
Reclassification adjustment for losses to net income	(3.5		)	—			(3.5		)	—		3.5			(3.5		)
Pension plan:
Actuarial gain (loss)	—			—			—			—		—			—
Reclassification adjustment to net income for amortization of actuarial losses	2.2			—			2.2			—		(2.2		)	2.2
Prior service costs	(0.5		)	—			(0.5		)	—		0.5			(0.5		)
Reclassification adjustment to net income for amortization of net prior service credits	(1.1		)	—			(1.1		)	—		1.1			(1.1		)
Net curtailment gain and settlement loss	(3.0		)	—			(3.0		)	—		3.0			(3.0		)
Total other comprehensive (loss) income	47.1			—			46.1			1.0		(47.1		)	47.1
Total comprehensive income (loss)	$	566.4		$	(0.9	)	$	506.0		$	525.8	$	(1,030.9	)	$	566.4

Condensed Consolidating Statement of Comprehensive Income

For the 52 week period endedJanuary 28, 2017

(in millions)	Signet Jewelers Limited			Signet UK Finance plc			Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Eliminations			Consolidated
Net income (loss)	$	543.2		$	(0.8	)	$	559.7		$	557.7	$	(1,116.6	)	$	543.2
Other comprehensive (loss) income:
Foreign currency translation adjustments	(25.6		)	—			(31.2		)	5.6		25.6			(25.6		)
Available-for-sale securities:
Unrealized gain (loss)	—			—			—			—		—			—
Cash flow hedges:
Unrealized gain (loss)	6.9			—			6.9			—		(6.9		)	6.9
Reclassification adjustment for losses to net income	(0.6		)	—			(0.6		)	—		0.6			(0.6		)
Pension plan:
Actuarial gain (loss)	(13.6		)	—			(13.6		)	—		13.6			(13.6		)
Reclassification adjustment to net income for amortization of actuarial losses	1.2			—			1.2			—		(1.2		)	1.2
Prior service costs	(0.4		)	—			(0.4		)	—		0.4			(0.4		)
Reclassification adjustment to net income for amortization of net prior service credits	(1.5		)	—			(1.5		)	—		1.5			(1.5		)
Total other comprehensive (loss) income	(33.6		)	—			(39.2		)	5.6		33.6			(33.6		)
Total comprehensive income (loss)	$	509.6		$	(0.8	)	$	520.5		$	563.3	$	(1,083.0	)	$	509.6

Condensed Consolidating Statement of Comprehensive Income

For the 52 week period endedJanuary 30, 2016

(in millions)	Signet Jewelers Limited			Signet UK Finance plc			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	467.9		$	(0.9	)	$	555.5		$	490.8		$	(1,045.4	)	$	467.9
Other comprehensive (loss) income:
Foreign currency translation adjustments	(40.2		)	—			(44.8		)	4.6			40.2			(40.2		)
Available-for-sale securities:
Unrealized gain (loss)	(0.4		)	—			—			(0.4		)	0.4			(0.4		)
Cash flow hedges:
Unrealized gain (loss)	(11.8		)	—			(11.8		)	—			11.8			(11.8		)
Reclassification adjustment for losses to net income	3.5			—			3.5			—			(3.5		)	3.5
Pension plan:
Actuarial gain (loss)	10.9			—			10.9			—			(10.9		)	10.9
Reclassification adjustment to net income for amortization of actuarial losses	2.7			—			2.7			—			(2.7		)	2.7
Prior service costs	(0.5		)	—			(0.5		)	—			0.5			(0.5		)
Reclassification adjustment to net income for amortization of net prior service credits	(1.7		)	—			(1.7		)	—			1.7			(1.7		)
Total other comprehensive (loss) income	(37.5		)	—			(41.7		)	4.2			37.5			(37.5		)
Total comprehensive income (loss)	$	430.4		$	(0.9	)	$	513.8		$	495.0		$	(1,007.9	)	$	430.4

Condensed Consolidating Balance Sheet

February 3, 2018

(in millions)	Signet Jewelers Limited		Signet UK Finance plc			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	1.7	$	0.1		$	150.5	$	72.8		$	—		$	225.1
Accounts receivable, net	—		—			692.5		—			—			692.5
Intra-entity receivables, net	—		2.9			—		166.9			(169.8		)	—
Other receivables	—		—			62.0		25.2			—			87.2
Other current assets	—		—			154.4		3.8			—			158.2
Income taxes	—		—			2.6		—			—			2.6
Inventories	—		—			2,201.3		79.2			—			2,280.5
Total current assets	1.7		3.0			3,263.3		347.9			(169.8		)	3,446.1
Non-current assets:
Property, plant and equipment, net	—		—			870.1		7.8			—			877.9
Goodwill	—		—			516.4		305.3			—			821.7
Intangible assets, net	—		—			410.9		70.6			—			481.5
Investment in subsidiaries	3,150.2		—			1,163.6		606.0			(4,919.8		)	—
Intra-entity receivables, net	—		400.0			—		2,859.0			(3,259.0		)	—
Other assets	—		—			140.1		31.1			—			171.2
Deferred tax assets	—		—			1.3		0.1			—			1.4
Retirement benefit asset	—		—			39.8		—			—			39.8
Total assets	$	3,151.9	$	403.0		$	6,405.5	$	4,227.8		$	(8,348.6	)	$	5,839.6
Liabilities and Shareholders’ equity
Current liabilities:
Loans and overdrafts	$	—	$	(0.7	)	$	44.7	$	—		$	—		$	44.0
Accounts payable	—		—			202.2		34.8			—			237.0
Intra-entity payables, net	11.3		—			158.5		—			(169.8		)	—
Accrued expenses and other current liabilities	27.2		2.4			397.5		20.9			—			448.0
Deferred revenue	—		—			276.2		12.4			—			288.6
Income taxes	—		(0.2		)	36.7		(16.9		)	—			19.6
Total current liabilities	38.5		1.5			1,115.8		51.2			(169.8		)	1,037.2
Non-current liabilities:
Long-term debt	—		395.2			293.0		—			—			688.2
Intra-entity payables, net	—		—			3,259.0		—			(3,259.0		)	—
Other liabilities	—		—			233.0		6.6			—			239.6
Deferred revenue	—		—			668.9		—			—			668.9
Deferred tax liabilities	—		—			76.7		15.6			—			92.3
Total liabilities	38.5		396.7			5,646.4		73.4			(3,428.8		)	2,726.2
Series A redeemable convertible preferred shares	613.6		—			—		—			—			613.6
Total shareholders’ equity	2,499.8		6.3			759.1		4,154.4			(4,919.8		)	2,499.8
Total liabilities, redeemable convertible preferred shares and shareholders’ equity	$	3,151.9	$	403.0		$	6,405.5	$	4,227.8		$	(8,348.6	)	$	5,839.6

Condensed Consolidating Balance Sheet

January 28, 2017

(in millions)	Signet Jewelers Limited		Signet UK Finance plc			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	1.7	$	0.1		$	70.3	$	26.6		$	—		$	98.7
Accounts receivable, net	—		—			1,858.0		—			—			1,858.0
Intra-entity receivables, net	12.7		—			145.1		—			(157.8		)	—
Other receivables	—		—			71.1		24.8			—			95.9
Other current assets	—		—			131.4		4.9			—			136.3
Income taxes	—		—			4.4		—			—			4.4
Inventories	—		—			2,371.8		77.5			—			2,449.3
Total current assets	14.4		0.1			4,652.1		133.8			(157.8		)	4,642.6
Non-current assets:
Property, plant and equipment, net	—		—			818.5		4.4			—			822.9
Goodwill	—		—			514.0		3.6			—			517.6
Intangible assets, net	—		—			417.0		—			—			417.0
Investment in subsidiaries	3,117.6		—			721.6		590.9			(4,430.1		)	—
Intra-entity receivables, net	—		402.9			—		3,647.1			(4,050.0		)	—
Other assets	—		—			134.8		30.3			—			165.1
Deferred tax assets	—		—			0.6		0.1			—			0.7
Retirement benefit asset	—		—			31.9		—			—			31.9
Total assets	$	3,132.0	$	403.0		$	7,290.5	$	4,410.2		$	(8,637.9	)	$	6,597.8
Liabilities and Shareholders’ equity
Current liabilities:
Loans and overdrafts	$	—	$	(0.7	)	$	91.8	$	—		$	—		$	91.1
Accounts payable	—		—			248.2		7.5			—			255.7
Intra-entity payables, net	—		—			—		157.8			(157.8		)	—
Accrued expenses and other current liabilities	29.9		2.5			429.2		16.6			—			478.2
Deferred revenue	—		—			275.5		1.4			—			276.9
Income taxes	—		(0.2		)	115.5		(13.5		)	—			101.8
Total current liabilities	29.9		1.6			1,160.2		169.8			(157.8		)	1,203.7
Non-current liabilities:
Long-term debt	—		394.3			323.6		600.0			—			1,317.9
Intra-entity payables, net	—		—			4,050.0		—			(4,050.0		)	—
Other liabilities	—		—			208.7		5.0			—			213.7
Deferred revenue	—		—			659.0		—			—			659.0
Deferred tax liabilities	—		—			101.4		—			—			101.4
Total liabilities	29.9		395.9			6,502.9		774.8			(4,207.8		)	3,495.7
Series A redeemable convertible preferred shares	611.9		—			—		—			—			611.9
Total shareholders’ equity	2,490.2		7.1			787.6		3,635.4			(4,430.1		)	2,490.2
Total liabilities, redeemable convertible preferred shares and shareholders’ equity	$	3,132.0	$	403.0		$	7,290.5	$	4,410.2		$	(8,637.9	)	$	6,597.8

Condensed Consolidating Statement of Cash Flows

For the 53 week period endedFebruary 3, 2018

(in millions)	Signet Jewelers Limited			Signet UK Finance plc			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	767.8		$	(0.1	)	$	1,856.7		$	586.0		$	(1,269.9	)	$	1,940.5
Investing activities
Purchase of property, plant and equipment	—			—			(236.3		)	(1.1		)	—			(237.4		)
Investment in subsidiaries	(219.9		)	—			(25.0		)	—			244.9			—
Purchase of available-for-sale securities	—			—			—			(2.4		)	—			(2.4		)
Proceeds from available-for-sale securities	—			—			—			2.2			—			2.2
Acquisition of R2Net, net of cash acquired	—			—			(331.8		)	—			—			(331.8		)
Net cash (used in) provided by investing activities	(219.9		)	—			(593.1		)	(1.3		)	244.9			(569.4		)
Financing activities
Dividends paid on common shares	(76.5		)	—			—			—			—			(76.5		)
Dividends paid on redeemable convertible preferred shares	(34.7		)	—			—			—			—			(34.7		)
Intra-entity dividends paid	—			—			(800.0		)	(469.9		)	1,269.9			—
Repurchase of common shares	(460.0		)	—			—			—			—			(460.0		)
Proceeds from issuance of common shares	0.3			—			219.9			25.0			(244.9		)	0.3
Net settlement of equity based awards	(2.9		)	—			—			—			—			(2.9		)
Proceeds from term loan	—			—			350.0			—			—			350.0
Repayments of term loan	—			—			(372.3		)	—			—			(372.3		)
Proceeds from securitization facility	—			—			—			1,745.9			—			1,745.9
Repayment of securitization facility	—			—			—			(2,345.9		)	—			(2,345.9		)
Proceeds from revolving credit facility	—			—			814.0			—			—			814.0
Repayments of revolving credit facility	—			—			(870.0		)	—			—			(870.0		)
Payment of debt issuance costs	—			—			(1.4		)	—			—			(1.4		)
Proceeds from (repayment of) short-term borrowings	—			—			(0.1		)	—			—			(0.1		)
Intra-entity activity, net	25.9			0.1			(532.2		)	506.2			—			—
Net cash (used in) provided by financing activities	(547.9		)	0.1			(1,192.1		)	(538.7		)	1,025.0			(1,253.6		)
Cash and cash equivalents at beginning of period	1.7			0.1			70.3			26.6			—			98.7
Increase (decrease) in cash and cash equivalents	—			—			71.5			46.0			—			117.5
Effect of exchange rate changes on cash and cash equivalents	—			—			8.7			0.2			—			8.9
Cash and cash equivalents at end of period	$	1.7		$	0.1		$	150.5		$	72.8		$	—		$	225.1

Condensed Consolidating Statement of Cash Flows

For the 52 week period endedJanuary 28, 2017

(in millions)	Signet Jewelers Limited			Signet UK Finance plc			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	1,057.9		$	0.1		$	724.8		$	525.6		$	(1,630.1	)	$	678.3
Investing activities
Purchase of property, plant and equipment	—			—			(277.9		)	(0.1		)	—			(278.0		)
Investment in subsidiaries	(610.0		)	—			—			—			610.0			—
Purchase of available-for-sale securities	—			—			—			(10.4		)	—			(10.4		)
Proceeds from available-for-sale securities	—			—			—			10.0			—			10.0
Net cash (used in) provided by investing activities	(610.0		)	—			(277.9		)	(0.5		)	610.0			(278.4		)
Financing activities
Dividends paid on common shares	(75.6		)	—			—			—			—			(75.6		)
Intra-entity dividends paid	—			—			(730.0		)	(900.1		)	1,630.1			—
Repurchase of common shares	(1,000.0		)	—			—			—			—			(1,000.0		)
Proceeds from issuance of common shares	2.1			—			610.0			—			(610.0		)	2.1
Proceeds from issuance of redeemable convertible preferred shares, net of issuance costs	611.3			—			—			—			—			611.3
Net settlement of equity based awards	(4.9		)	—			—			—			—			(4.9		)
Excess tax benefit from exercise of share awards	—			—			2.4			—			—			2.4
Repayments of term loan	—			—			(16.4		)	—			—			(16.4		)
Proceeds from securitization facility	—			—			—			2,404.1			—			2,404.1
Repayment of securitization facility	—			—			—			(2,404.1		)	—			(2,404.1		)
Proceeds from revolving credit facility	—			—			1,270.0			—			—			1,270.0
Repayments of revolving credit facility	—			—			(1,214.0		)	—			—			(1,214.0		)
Payment of debt issuance costs	—			—			(2.1		)	(0.6		)	—			(2.7		)
Principal payments under capital lease obligations	—			—			(0.2		)	—			—			(0.2		)
Proceeds from (repayment of) short-term borrowings	—			—			(10.2		)	—			—			(10.2		)
Intra-entity activity, net	19.0			(0.1		)	(386.6		)	367.7			—			—
Net cash (used in) provided by financing activities	(448.1		)	(0.1		)	(477.1		)	(533.0		)	1,020.1			(438.2		)
Cash and cash equivalents at beginning of period	1.9			0.1			102.0			33.7			—			137.7
Increase (decrease) in cash and cash equivalents	(0.2		)	—			(30.2		)	(7.9		)	—			(38.3		)
Effect of exchange rate changes on cash and cash equivalents	—			—			(1.5		)	0.8			—			(0.7		)
Cash and cash equivalents at end of period	$	1.7		$	0.1		$	70.3		$	26.6		$	—		$	98.7

Condensed Consolidating Statement of Cash Flows

For the 52 week period endedJanuary 30, 2016

(in millions)	Signet Jewelers Limited			Signet UK Finance plc			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	98.6		$	(0.1	)	$	325.7		$	215.0		$	(195.9	)	$	443.3
Investing activities
Purchase of property, plant and equipment	—			—			(225.9		)	(0.6		)	—			(226.5		)
Investment in subsidiaries	—			—			(0.3		)	—			0.3			—
Purchase of available-for-sale securities	—			—			—			(6.2		)	—			(6.2		)
Proceeds from available-for-sale securities	—			—			—			4.0			—			4.0
Net cash (used in) provided by investing activities	—			—			(226.2		)	(2.8		)	0.3			(228.7		)
Financing activities
Dividends paid on common shares	(67.1		)	—			—			—			—			(67.1		)
Intra-entity dividends paid	—			—			(149.3		)	(46.6		)	195.9			—
Repurchase of common shares	(130.0		)	—			—			—			—			(130.0		)
Proceeds from issuance of common shares	5.0			0.3			—			—			(0.3		)	5.0
Net settlement of equity based awards	(8.3		)	—			—			—			—			(8.3		)
Excess tax benefit from exercise of share awards	—			—			6.9			—			—			6.9
Repayments of term loan	—			—			(25.0		)	—			—			(25.0		)
Proceeds from securitization facility	—			—			—			2,303.9			—			2,303.9
Repayment of securitization facility	—			—			—			(2,303.9		)	—			(2,303.9		)
Proceeds from revolving credit facility	—			—			316.0			—			—			316.0
Repayments of revolving credit facility	—			—			(316.0		)	—			—			(316.0		)
Principal payments under capital lease obligations	—			—			(1.0		)	—			—			(1.0		)
Proceeds from (repayment of) short-term borrowings	—			—			(47.1		)	—			—			(47.1		)
Intra-entity activity, net	101.6			(0.2		)	54.9			(156.3		)	—			—
Net cash (used in) provided by financing activities	(98.8		)	0.1			(160.6		)	(202.9		)	195.6			(266.6		)
Cash and cash equivalents at beginning of period	2.1			0.1			166.5			24.9			—			193.6
Increase (decrease) in cash and cash equivalents	(0.2		)	—			(61.1		)	9.3			—			(52.0		)
Effect of exchange rate changes on cash and cash equivalents	—			—			(3.4		)	(0.5		)	—			(3.9		)
Cash and cash equivalents at end of period	$	1.9		$	0.1		$	102.0		$	33.7		$	—		$	137.7

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Quarterly Financial Information - Unaudited

12 Months Ended

Feb. 03, 2018

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Information - Unaudited

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.

	Fiscal 2018 Quarters ended
(in millions, except per share amounts)	April 29, 2017		July 29, 2017		October 28, 2017			February 3, 2018
Sales	$	1,403.4	$	1,399.6	$	1,156.9		$	2,293.1
Gross margin	491.2		457.9		321.1			919.8
Net income (loss) attributable to common shareholders	70.3		85.2		(12.1		)	343.0
Earnings (loss) per common share:
Basic	$	1.03	$	1.34	$	(0.20	)	$	5.70
Diluted	$	1.03	$	1.33	$	(0.20	)	$	5.24

	Fiscal 2017 Quarters ended
(in millions, except per share amounts)	April 30, 2016		July 30, 2016		October 29, 2016		January 28, 2017
Sales	$	1,578.9	$	1,373.4	$	1,186.2	$	2,269.9
Gross margin	600.4		464.9		350.0		945.5
Net income (loss) attributable to common shareholders	146.8		81.9		14.8		287.8
Earnings (loss) per common share:
Basic	$	1.87	$	1.06	$	0.20	$	4.17
Diluted	$	1.87	$	1.06	$	0.20	$	3.92

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Organization and summary of significant accoutning policies (Policies)

12 Months Ended

Feb. 03, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of preparation

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 for the 53 week period endedFebruary 3, 2018 (“Fiscal 2018”), as Signet’s fiscal year ends on the Saturday nearest to January 31. The comparative periods are for the 52 week period endedJanuary 28, 2017 (“Fiscal 2017”) and the 52 week period endedJanuary 30, 2016 (“Fiscal 2016”). Intercompany transactions and balances have been eliminated in consolidation. Certain prior year amounts have been reclassified to conform to the current year presentation.

Use of estimates

Use of estimates

The preparation of these consolidated financial statements, in conformity with US GAAP and US Securities and Exchange Commission (“SEC”) regulations, 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 reported period. Actual results could differ from those estimates. Estimates and assumptions are primarily made in relation to the valuation of accounts receivable, inventories, deferred revenue, derivatives, employee benefits, income taxes, contingencies, asset impairments, indefinite-lived intangible assets, as well as depreciation and amortization of long-lived assets.

The reported results of operations are not indicative of results expected in future periods.

Foreign currency translation

Foreign currency translation

The financial position and operating results of certain foreign operations, including the UK Jewelry division and the Canadian operations of the Zale Jewelry segment, are consolidated using the local currency as the functional currency. Assets and liabilities are translated at the rates of exchange on the balance sheet date, and revenues and expenses are translated at the monthly average rates of exchange during the period. Resulting translation gains or losses are included in the accompanying consolidated statements of shareholders’ equity as a component of accumulated other comprehensive income (loss) (“AOCI”). Gains or losses resulting from foreign currency transactions are included within the consolidated income statements, whereas translation adjustments and gains or losses related to intercompany loans of a long-term investment nature are recognized as a component of AOCI.

Revenue recognition

Revenue recognition

The Company recognizes revenue when there is persuasive evidence of an arrangement, delivery of products has occurred or services have been rendered, the sale price is fixed and determinable, and collectability is reasonably assured. The Company’s revenue streams and their respective accounting treatments are discussed below.

Merchandise sale and repairs

Store sales are recognized when the customer receives and pays for the merchandise at the store with cash, in-house customer finance, private label credit card programs, a third party credit card or a lease purchase option. For online sales shipped to customers, 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. Revenues on the sale of merchandise are 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. Revenues derived from providing replacement merchandise on behalf of insurance organizations are recognized upon receipt of the merchandise by the customer. Revenues on repair of merchandise are recognized when the service is complete and the customer collects the merchandise at the store.

Extended service plans and lifetime warranty agreements (“ESP”)

The Company recognizes revenue related to ESP sales in proportion to when the expected costs will be incurred. The deferral period for ESP sales in each division 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 utilized. A significant change in estimates related to the time period or pattern in which warranty-related costs are expected to be incurred could materially impact revenues. 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 in the consolidated balance sheets.

The Sterling Jewelers division sells ESP, subject to certain conditions, to perform repair work over the life of the product. Revenue from the sale of the lifetime ESP is recognized consistent with the estimated pattern of claim costs expected to be incurred by the Company in connection with performing under the ESP obligations. Based on an evaluation of historical claims data, management currently estimates that substantially all claims will be incurred within17years of the sale of the warranty contract.

In the second quarter of Fiscal 2016, an operational change related to the Sterling Jewelers division’s ESP associated with ring sizing was made to further align Zale and Sterling ESP policies. As a result, revenue from the sale of these lifetime ESP in the Sterling Jewelers division is deferred and recognized over17years for all plans, with approximately57%of revenue recognized within the firsttwoyears for plans sold on or after May 2, 2015 (January 28, 2017: 57%; January 30, 2016: 57%) and 42%of revenue recognized within the first two years for plans sold prior to May 2, 2015 (January 28, 2017: 42%; January 30, 2016: 42%).

The Zale division also sells ESP. Zale Jewelry customers are offered lifetime warranties on certain products that cover sizing and breakage with an option to purchase theft protection for a two-year period. Revenue from the sale of lifetime ESP is deferred and recognized over 10 years, with approximately69%of revenue recognized within the first two years (January 28, 2017: 69%; January 30, 2016: 69%). Revenues related to the optional theft protection are deferred and recognized in proportion to when the expected claims costs will be incurred over the two-year contract period. Zale Jewelry customers are also offered a two-year watch warranty and a one-year warranty that covers breakage. Piercing Pagoda customers are also offered a one-year warranty that covers breakage. Revenue from the two-year watch warranty and one-year breakage warranty is recognized on a straight-line basis over the respective contract terms.

The Sterling Jewelers division also sells a Jewelry Replacement Plan (“JRP”). The JRP is designed to protect customers from damage or defects of purchased merchandise for a period of three years. If the purchased merchandise is defective or becomes damaged under normal use in that time period, the item will be replaced. JRP revenue is deferred and recognized on a straight-line basis over the period of expected claims costs.

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 sale less an estimate of cancellations based on historical experience.

Sale vouchers

Certain promotional offers award sale vouchers to customers who make purchases above a certain value, which grant a fixed discount on a future purchase 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 using the relative-selling-price method. Sale vouchers are not sold on a stand-alone basis. The fair value of the voucher is determined based on the average sales transactions in which the vouchers were issued, when the vouchers are expected to be redeemed and the estimated voucher redemption rate. The fair value allocated to the future purchase is recorded as deferred revenue.

Consignment inventory sales

Sales of consignment inventory are accounted for on a gross sales basis as the Company is the primary obligor providing independent advice, guidance and after-sales service to customers. The products sold from consignment inventory are indistinguishable from other products that are sold to customers and are sold on the same terms. Supplier products are selected at the discretion of the Company. The Company is responsible for determining the selling price, physical security of the products and collections of accounts receivable.

Cost of sales and selling, general and administrative expenses

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 stores inclusive of payroll, inventory shrinkage, store operating and occupancy costs, net bad debts and charges for late payments under the 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 and cost of in-house credit prior to the Company’s outsourcing initiatives and third-party servicing of receivables subsequent to the outsourcing initiative; advertising and promotional costs and other operating expenses not specifically categorized elsewhere in the consolidated income statements.

Store opening costs

Store opening costs

The opening costs of new locations are expensed as incurred.

Advertising and promotional costs

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 catalogs 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.

In-house customer finance programs

In-house customer finance programs

Sterling Jewelers division operates customer in-house finance programs that allow customers to finance merchandise purchases from its stores. Finance charges are recognized in accordance with the contractual agreements. Gross interest earned is recorded as other operating income in the consolidated income statements. See Note 11 for additional discussion of the Company’s other operating income. In addition to interest-bearing accounts, a portion of credit sales are made using interest-free financing for one year or less, subject to certain conditions.

Prior to the fourth quarter of Fiscal 2018, the accrual of interest was suspended when accounts became more than 90 days aged on a recency basis. Upon suspension of the accrual of interest, interest income was subsequently recognized to the extent cash payments are received. Accrual of interest was resumed when receivables are removed from the non-accrual status.

Income taxes

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, based on management’s evaluation of all available evidence, both positive and negative, including reversals of deferred tax liabilities, projected future taxable income and results of recent operations.

The Company does not recognize tax benefits related to positions taken on certain tax matters unless the position is more likely than not to be sustained upon examination by tax authorities. At any point in time, various tax years are subject to or are in the process of being audited by various taxing authorities. The Company records a reserve for uncertain tax positions, including interest and penalties. 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.

Cash and cash equivalents

Cash and cash equivalents

Cash and cash equivalents are comprised of cash on hand, money market deposits and amounts placed with external fund managers with an original maturity of three months or less. Cash and cash equivalents 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.

Accounts receivable

Accounts receivable

Accounts receivable under the customer finance programs are presented net of an allowance for uncollectible amounts. This allowance represents management’s estimate of the expected losses in the accounts receivable portfolio as of the balance sheet date, and is calculated using a model that analyzes factors such as delinquency rates and recovery rates.

Prior to the fourth quarter of Fiscal 2018, the Company calculated the allowance for uncollectible amounts as follows:

• Record an allowance for amounts under 90 days aged on a recency measure of delinquency based on historical loss experience and payment performance information. The recency method measured the delinquency level by the number of days since the last qualifying payment was received, with the qualifying payment increasing with delinquency level.

• Record a 100% allowance for any amount aged more than 90 days on a recency measure of delinquency and any amount associated with an account the owner of which has filed for bankruptcy.

Signet’s recency method of aging had been in place and unchanged since the inception of the in-house consumer financing program. The delinquency level was measured by the number of days since the last qualifying payment was received, with the qualifying payment increasing with delinquency level. The minimum payment does not decline as the balance declines.

In the fourth quarter of Fiscal 2018, the Company began measuring delinquency under the contractual basis which aligns with the processes and collection strategies utilized by the Company’s third party credit service provider for the remaining in-house finance receivable portfolio beginning in October 2017. Under this measure of delinquency, credit card accounts are considered delinquent if the minimum payment is not received by the specified due date. The aging method is based on the number of completed billing cycles during which the customer has failed to make a minimum payment. Management utilizes the delinquency rates identified within the portfolio when calculating the overall allowance for the portfolio.

The overall allowance continues to be based on the Company’s historical loss experience and payment performance information for accounts with similar credit quality characteristics as the remaining portfolio since the inception of the in-house consumer financing program, which was operated under the Company’s aging and collection methodologies in place prior to October 2017. As a result of the credit transaction disclosed in Note 3, the aging and collection methodologies have been revised to align with contractual method, which may result in different customer payment behaviors. A 100% allowance is made for accounts associated with bankrupt or deceased cardholders, as well as for accounts more than 120 days past due on the contractual basis. The Company’s policy for charging off uncollectible receivables is 180 days.

Inventories

Inventories

Inventories are primarily held for resale and are valued at the lower of cost or net realizable value. Cost is determined using weighted-average cost for all inventories except for inventories held in the Company’s diamond sourcing operations, where cost is determined using specific identification. Cost includes charges directly related to bringing inventory to its present location and condition. Such charges would include warehousing, security, distribution and certain buying costs. Net realizable value is defined as estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Inventory reserves are recorded for obsolete, slow moving or defective items and shrinkage. Inventory reserves for obsolete, slow moving or defective items are calculated as the difference between the cost of inventory and its estimated market value based on targeted inventory turn rates, future demand, management strategy and market conditions. Due to the inventory being primarily comprised of precious stones and metals including gold, the age of the inventory has a limited impact on the estimated market value. Inventory reserves for shrinkage are 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.

Vendor contributions

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, contributions are matched against the costs of promotions. Vendor contributions received as general contributions and not related to specific promotional events are recognized as a reduction of inventory costs.

Property, plant and equipment

Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation, amortization and impairment charges. 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 and software	Ranging from 3 – 5 years

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 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 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, based on the Company’s internal business plans. 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. The Company utilizes historical experience, internal business plans and an appropriate discount rate to estimate the fair value. Property and equipment at stores planned for closure are depreciated over a revised estimate of their useful lives.

Goodwill and intangibles

Goodwill and intangibles

In a business combination, the Company estimates and records the fair value of identifiable intangible assets and liabilities acquired. The fair value of these intangible assets and liabilities is estimated based on management’s assessment, including determination of appropriate valuation technique and consideration of any third party appraisals, when necessary. Significant estimates in valuing intangible assets and liabilities acquired include, but are not limited to, future expected cash flows associated with the acquired asset or liability, expected life and discount rates. The excess purchase price over the estimated fair values of the assets acquired and liabilities assumed is recognized as goodwill. Goodwill is recorded by the Company’s reporting units based on the acquisitions made by each. Goodwill is evaluated for impairment annually and more frequently if indicators of impairment arise. In evaluating goodwill for impairment, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value (including goodwill). If the Company concludes that it is not more likely than not that the fair value of a reporting unit is less than its carrying value, then no further testing is required. However, if the Company concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then the two-step goodwill impairment test is performed to identify a potential goodwill impairment and measure the amount of impairment to be recognized, if any. The two-step impairment test involves estimating the fair value of all assets and liabilities of the reporting unit, including the implied fair value of goodwill, through either estimated discounted future cash flows or market-based methodologies.

The annual testing date for goodwill allocated to the Sterling Jewelers reporting unit is the last day of the fourth quarter. The annual testing date for goodwill allocated to the reporting units associated with the Zale division and the Other reporting unit is May 31. There have been no goodwill impairment charges recorded during the fiscal periods presented in the consolidated financial statements as financial results for the reporting units have met or exceeded financial projections developed at the time of the acquisitions. If future economic conditions are different than those projected by management, future impairment charges may be required.

Intangible assets with definite lives are amortized and reviewed for impairment whenever events or circumstances indicate that the carrying amount of the asset may not be recoverable. If the estimated undiscounted future cash flows related to the asset are less than the carrying amount, the Company recognizes an impairment charge equal to the difference between the carrying value and the estimated fair value, usually determined by the estimated discounted future cash flows of the asset.

Intangible assets with indefinite lives are reviewed for impairment each year in the second quarter and may be reviewed more frequently if certain events occur or circumstances change. The Company first performs a qualitative assessment to determine whether it is more likely than not that the indefinite-lived intangible asset is impaired. If the Company determines that it is more likely than not that the fair value of the asset is less than its carrying amount, the Company estimates the fair value, usually determined by the estimated discounted future cash flows of the asset, compares that value with its carrying amount and records an impairment charge, if any. If future economic conditions are different than those projected by management, future impairment charges may be required.

Derivatives and hedge accounting

Derivatives and hedge accounting

The Company 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 net income or other comprehensive income (“OCI”), depending on whether the derivative qualifies as an effective hedge.

If a derivative instrument meets certain criteria, it may be designated as a cash flow hedge on the date it is entered into. For cash flow hedge transactions, the effective portion of the changes in fair value of the derivative instrument is recognized directly in equity as a component of AOCI 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 AOCI should be immediately recognized in net income. Cash flows from derivative contracts are included in net cash provided by operating activities.

Employee Benefits

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 consolidated income statements.

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 projected benefit obligation measured at the balance sheet date. Gains or losses and prior service costs or credits that arise and are not included as components of net periodic pension cost are recognized, net of tax, in OCI.

Signet also operates a defined contribution plan in the UK and a defined contribution 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 consolidated income statements as incurred.

Borrowing costs

Borrowing costs

Borrowings include interest-bearing bank loans, accounts receivable securitization program and bank overdrafts. Borrowing costs are capitalized and amortized into interest expense over the contractual term of the related loan.

Share-based compensation

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 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 and the binomial valuation model for awards granted under the Share Saving Plans. 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.

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

Contingent liabilities

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.

Leases

Leases

Signet’s operating leases generally include retail store locations. Certain operating leases include predetermined rent increases, which 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, such as contingent rentals, taxes and common area maintenance, 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. In addition, 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.

Dividends

Dividends

Dividends on common shares are reflected as a reduction of retained earnings in the period in which they are formally declared by the Board of Directors (the “Board”). In addition, the cumulative dividends on preferred shares, whether or not declared, are reflected as a reduction of retained earnings.

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Organization and summary of significant accoutning policies (Tables)

12 Months Ended

Feb. 03, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of compensation and benefits

Compensation and benefits costs included within cost of sales and selling, general and administrative expenses were as follows:

(in millions)	Fiscal 2018		Fiscal 2017		Fiscal 2016
Wages and salaries	$	1,140.3	$	1,183.2	$	1,222.8
Payroll taxes	93.8		96.5		101.1
Employee benefit plans	13.0		19.3		17.5
Share-based compensation	16.1		8.0		16.4
Total compensation and benefits	$	1,263.2	$	1,307.0	$	1,357.8

Schedule of cash and cash equivalents

The following table summarizes the details of the Company’s cash and cash equivalents:

(in millions)	February 3, 2018		January 28, 2017
Cash and cash equivalents held in money markets and other accounts	$	182.6	$	65.6
Cash equivalents from third-party credit card issuers	40.5		31.1
Cash on hand	2.0		2.0
Total cash and cash equivalents	$	225.1	$	98.7

Schedule of property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation, amortization and impairment charges. 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 and software	Ranging from 3 – 5 years

(in millions)	February 3, 2018			January 28, 2017
Land and buildings	$	35.9		$	33.5
Leasehold improvements	689.8			632.4
Furniture and fixtures	804.2			761.0
Equipment	177.0			137.7
Software	271.4			211.0
Construction in progress	97.2			96.7
Total	$	2,075.5		$	1,872.3
Accumulated depreciation and amortization	(1,197.6		)	(1,049.4		)
Property, plant and equipment, net	$	877.9		$	822.9

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Acquisitions (Tables)

12 Months Ended

Feb. 03, 2018

Business Combinations [Abstract]

Summary of Consideration Transferred, Assets Acquired and Liabilities Assumed

The following table summarizes the preliminary fair values identified for the assets acquired and liabilities assumed in the R2Net acquisition as of September 12, 2017:

(in millions)	Initial amounts
Cash and cash equivalents	$	47.3
Inventories	12.1
Other current assets	9.7
Property, plant and equipment	3.5
Intangible assets:
Trade name	70.6
Current liabilities	(42.4		)
Deferred tax liabilities	(23.5		)
Fair value of net assets acquired	77.3
Goodwill(1)	301.7
Total consideration transferred	$	379.0

⁽¹⁾  The amount of goodwill generated will be adjusted for any additional assets or liabilities identified by the Company or for any adjustments to the preliminary fair values identified for the assets acquired and liabilities assumed in the R2Net acquisition reflected above.

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Segment Information (Tables)

12 Months Ended

Feb. 03, 2018

Segment Reporting [Abstract]

Segment Reporting Information, By Segment

(in millions)	Fiscal 2018			Fiscal 2017			Fiscal 2016
Sales:
Sterling Jewelers	$	3,820.5		$	3,930.4		$	3,988.7
Zale Jewelry(1)	1,516.2			1,549.7			1,568.2
Piercing Pagoda	278.5			263.1			243.2
UK Jewelry	616.7			647.1			737.6
Other	21.1			18.1			12.5
Total sales	$	6,253.0		$	6,408.4		$	6,550.2
Operating income (loss):
Sterling Jewelers(2)	$	576.0		$	715.8		$	718.6
Zale Jewelry	66.7			62.2			44.3
Piercing Pagoda	13.4			11.2			7.8
UK Jewelry	33.1			45.6			61.5
Other(3)	(109.3		)	(71.6		)	(128.5		)
Total operating income	$	579.9		$	763.2		$	703.7
Depreciation and amortization:
Sterling Jewelers	$	121.8		$	112.7		$	106.2
Zale Jewelry	55.3			49.1			44.8
Piercing Pagoda	6.4			4.6			3.3
UK Jewelry	19.1			21.6			20.1
Other	0.8			0.8			0.9
Total depreciation and amortization	$	203.4		$	188.8		$	175.3
Capital additions:
Sterling Jewelers	$	134.8		$	154.5		$	141.6
Zale Jewelry	76.3			85.0			47.7
Piercing Pagoda	8.6			12.7			10.2
UK Jewelry	17.6			25.7			26.4
Other	0.1			0.1			0.6
Total capital additions	$	237.4		$	278.0		$	226.5

⁽¹⁾  Includes sales of $235.1 million, $234.6 million and $248.7 million generated by Canadian operations in Fiscal 2018, Fiscal 2017 and Fiscal 2016, respectively.

⁽²⁾  For Fiscal 2018, amount includes $20.7 million gain related to the reversal of the allowance for credit losses for the in-house receivables sold, as well as the $10.2 million gain upon recognition of beneficial interest in connection with the sale of the prime portion of in-house receivables. See Note 3 for additional information.

⁽³⁾  For Fiscal 2018, Other includes $29.6 million of transaction costs related to the credit transaction, $8.6 million of R2Net acquisition costs, and $3.4 million of CEO transition costs. See Note 3 and Note 4 for additional information regarding credit transaction and acquisition of R2Net, respectively. For Fiscal 2017, Other includes $28.4 million of integration costs for consulting expenses associated with IT implementations, severance related to organizational changes and expenses associated with the settlement of miscellaneous legal matters pending as of the date of the Zale acquisition. For Fiscal 2016, Other includes $78.9 million of transaction and integration costs primarily attributable to the impact of the appraisal rights legal settlement discussed in Note 26 and expenses associated with legal, tax, accounting, IT implementations and consulting services, as well as severance costs.

(in millions)	February 3, 2018		January 28, 2017
Total assets:
Sterling Jewelers	$	3,279.4	$	4,015.4
Zale Jewelry	1,879.4		1,940.7
Piercing Pagoda	150.2		141.6
UK Jewelry	420.3		372.6
Other	110.3		127.5
Total assets	$	5,839.6	$	6,597.8
Total long-lived assets:
Sterling Jewelers	$	956.3	$	567.3
Zale Jewelry	1,075.6		1,050.1
Piercing Pagoda	63.6		61.4
UK Jewelry	78.3		70.7
Other	7.3		8.0
Total long-lived assets	$	2,181.1	$	1,757.5
Total liabilities:
Sterling Jewelers	$	1,482.4	$	2,061.4
Zale Jewelry	439.9		524.3
Piercing Pagoda	28.8		28.2
UK Jewelry	98.9		110.6
Other	676.2		771.2
Total liabilities	$	2,726.2	$	3,495.7

Sales By Product

(in millions)	Fiscal 2018		Fiscal 2017		Fiscal 2016
Sales by product:
Diamonds and diamond jewelry	$	3,742.8	$	3,853.7	$	3,918.1
Gold, silver jewelry, other products and services	2,067.2		2,090.0		2,116.4
Watches	443.0		464.7		515.7
Total sales	$	6,253.0	$	6,408.4	$	6,550.2

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Redeemable Preferred Shares (Tables)

12 Months Ended

Feb. 03, 2018

Temporary Equity Disclosure [Abstract]

Temporary Equity

The following table presents certain conversion measures as of February 3, 2018 and January 28, 2017:

(in millions, except conversion rate and conversion price)	February 3, 2018		January 28, 2017
Conversion rate	10.9409		10.6529
Conversion price	$	91.4002	$	93.8712
Potential impact of preferred shares if-converted to common shares	6.8		6.7
Liquidation preference	$	632.8	$	636.3

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Common Shares, Treasury Shares, Reserves and Dividends (Tables)

12 Months Ended

Feb. 03, 2018

Class of Stock [Line Items]

Class of Treasury Stock

The share repurchase activity is outlined in the table below:

			Fiscal 2018					Fiscal 2017					Fiscal 2016
(in millions, expect per share amounts)	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
2016 Program(1)	$	1,375.0	8.1	$	460.0	$	56.91	10.0	$	864.4	$	86.40	n/a	n/a		n/a
2013 Program(2)	$	350.0	n/a	n/a		n/a		1.2	$	135.6	$	111.26	1.0	$	130.0	$	127.63
Total			8.1	$	460.0	$	56.91	11.2	$	1,000.0	$	89.10	1.0	$	130.0	$	127.63

⁽¹⁾  The 2016 Program had $50.6 million remaining as of February 3, 2018.

⁽²⁾  The 2013 Program was completed in May 2016.

n/a Not applicable.

Schedule of Dividends

	Fiscal 2018					Fiscal 2017					Fiscal 2016
(in millions, except per share amounts)	Cash dividend per share		Total dividends			Cash dividend per share		Total dividends			Cash dividend per share		Total dividends
First quarter	$	0.31	$	21.3		$	0.26	$	20.4		$	0.22	$	17.6
Second quarter	0.31		18.7			0.26		19.7			0.22		17.6
Third quarter	0.31		18.7			0.26		18.1			0.22		17.5
Fourth quarter	0.31		18.8		(1)	0.26		17.7		(1)	0.22		17.5
Total	$	1.24	$	77.5		$	1.04	$	75.9		$	0.88	$	70.2

⁽¹⁾  Signet’s dividend policy results in the dividend payment date being a quarter in arrears from the declaration date. As a result, as of February 3, 2018 and January 28, 2017, $18.8 million and $17.7 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 2018 and Fiscal 2017, respectively.

Series A Redeemable Convertible Preferred Stock

Class of Stock [Line Items]

Schedule of Dividends

	Fiscal 2018		Fiscal 2017
(in millions)	Total cash dividends		Total cash dividends
First quarter	$	7.8	$	—
Second quarter	7.8		—
Third quarter	7.8		—
Fourth quarter(1)	7.8		11.3
Total	$	31.2	$	11.3

⁽¹⁾  Signet’s preferred shares dividends results in the dividend payment date being a quarter in arrears from the declaration date. As a result, as of February 3, 2018 and January 28, 2017, $7.8 million and $11.3 million, respectively, has been recorded in accrued expenses and other current liabilities in the condensed consolidated balance sheets reflecting the cash dividends on preferred shares declared for the fourth quarter of Fiscal 2018 and Fiscal 2017, respectively.

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Earnings Per Common Share (Tables)

12 Months Ended

Feb. 03, 2018

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic

The computation of basic EPS is outlined in the table below:

(in millions, except per share amounts)	Fiscal 2018		Fiscal 2017		Fiscal 2016
Numerator:
Net income attributable to common shareholders	$	486.4	$	531.3	$	467.9
Denominator:
Weighted average common shares outstanding	63.0		74.5		79.5
EPS – basic	$	7.72	$	7.13	$	5.89

Schedule of Earnings Per Share, Diluted

The computation of diluted EPS is outlined in the table below:

(in millions, except per share amounts)	Fiscal 2018		Fiscal 2017		Fiscal 2016
Numerator:
Net income attributable to common shareholders	$	486.4	$	531.3	$	467.9
Add: Dividends on preferred shares	32.9		11.9		—
Numerator for diluted EPS	$	519.3	$	543.2	$	467.9
Denominator:
Weighted average common shares outstanding	63.0		74.5		79.5
Plus: Dilutive effect of share awards	0.1		0.1		0.2
Plus: Dilutive effect of preferred shares	6.7		2.1		—
Diluted weighted average common shares outstanding	69.8		76.7		79.7
EPS – diluted	$	7.44	$	7.08	$	5.87

Schedule of antidilutive securities excluded from computation of earnings per share

(in millions)	Fiscal 2018	Fiscal 2017	Fiscal 2016
Share awards	0.4	0.1	0.1

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Accumulated Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Feb. 03, 2018

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The following tables present the changes in AOCI by component and the reclassifications out of AOCI, net of tax:

										Pension plan
(in millions)	Foreign currency translation			Losses on available-for-sale securities, net			Gains (losses) on cash flow hedges			Actuarial gains (losses)			Prior service credits (costs)			Accumulated other comprehensive (loss) income
Balance at January 31, 2015	$	(197.6	)	$	—		$	4.4		$	(56.7	)	$	13.3		$	(236.6	)
OCI before reclassifications	(40.2		)	(0.4		)	(11.8		)	10.9			(0.5		)	(42.0		)
Amounts reclassified from AOCI to net income	—			—			3.5			2.7			(1.7		)	4.5
Net current period OCI	(40.2		)	(0.4		)	(8.3		)	13.6			(2.2		)	(37.5		)
Balance at January 30, 2016	$	(237.8	)	$	(0.4	)	$	(3.9	)	$	(43.1	)	$	11.1		$	(274.1	)
OCI before reclassifications	(25.6		)	—			6.9			(13.6		)	(0.4		)	(32.7		)
Amounts reclassified from AOCI to net income	—			—			(0.6		)	1.2			(1.5		)	(0.9		)
Net current period OCI	(25.6		)	—			6.3			(12.4		)	(1.9		)	(33.6		)
Balance at January 28, 2017	$	(263.4	)	$	(0.4	)	$	2.4		$	(55.5	)	$	9.2		$	(307.7	)
OCI before reclassifications	50.9			0.3			1.8			—			(0.5		)	52.5
Amounts reclassified from AOCI to net income	—			—			(3.5		)	4.4			(6.3		)	(5.4		)
Net current period OCI	50.9			0.3			(1.7		)	4.4			(6.8		)	47.1
Balance at February 3, 2018	$	(212.5	)	$	(0.1	)	$	0.7		$	(51.1	)	$	2.4		$	(260.6	)

Reclassification out of Accumulated Other Comprehensive Income

The amounts reclassified from AOCI were as follows:

	Amounts reclassified from AOCI
(in millions)	Fiscal 2018			Fiscal 2017			Fiscal 2016			Income statement caption
(Gains) losses on cash flow hedges:
Foreign currency contracts	$	(3.2	)	$	(2.7	)	$	(0.4	)	Cost of sales (see Note 18)
Interest rate swaps	0.3			2.2			2.7			Interest expense, net (see Note 18)
Commodity contracts	(1.7		)	(0.2		)	2.6			Cost of sales (see Note 18)
Total before income tax	(4.6		)	(0.7		)	4.9
Income taxes	1.1			0.1			(1.4		)
Net of tax	(3.5		)	(0.6		)	3.5
Defined benefit pension plan items:
Amortization of unrecognized actuarial losses	2.8			1.5			3.4			Selling, general and administrative expenses(1)
Amortization of unrecognized net prior service credits	(1.4		)	(1.9		)	(2.2		)	Selling, general and administrative expenses(1)
Net curtailment gain and settlement loss	(3.7		)	—			—			Selling, general and administrative expenses(1)
Total before income tax	(2.3		)	(0.4		)	1.2
Income taxes	0.4			0.1			(0.2		)
Net of tax	(1.9		)	(0.3		)	1.0
Total reclassifications, net of tax	$	(5.4	)	$	(0.9	)	$	4.5

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

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Income Taxes (Tables)

12 Months Ended

Feb. 03, 2018

Income Tax Disclosure [Abstract]

Summary of Tax Expense by Jurisdiction

(in millions)	Fiscal 2018			Fiscal 2017		Fiscal 2016
Income before income taxes:
– US	$	202.2		$	424.0	$	426.1
– Foreign	325.0			289.8		231.7
Total income before income taxes	$	527.2		$	713.8	$	657.8
Current taxation:
– US	$	35.9		$	137.6	$	161.7
– Foreign	6.1			3.9		3.5
Deferred taxation:
– US	(34.8		)	28.1		22.3
– Foreign	0.7			1.0		2.4
Total income taxes	$	7.9		$	170.6	$	189.9

Reconciliation of Effective Tax Rate

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

	Fiscal 2018		Fiscal 2017		Fiscal 2016
US federal income tax rates	35.0	%	35.0	%	35.0	%
US state income taxes	1.9	%	1.9	%	2.7	%
Differences between US federal and foreign statutory income tax rates	(1.0	)%	(0.2	)%	(0.5	)%
Expenditures permanently disallowable for tax purposes, net of permanent tax benefits	1.0	%	0.4	%	0.5	%
Disallowable transaction costs	0.4	%	0.1	%	2.1	%
Impact of global reinsurance arrangements	(8.1	)%	(5.4	)%	(2.4	)%
Impact of global financing arrangements	(11.4	)%	(8.2	)%	(8.7	)%
Provisional benefit in current year taxes - the TCJ Act	(4.1	)%	—	%	—	%
Provisional remeasurement of deferred taxes - the TCJ Act	(12.3	)%	—	%	—	%
Other items	0.1	%	0.3	%	0.2	%
Effective tax rate	1.5	%	23.9	%	28.9	%

Schedule of Income Tax Provision

Accordingly, our income tax provision as of February 3, 2018, reflects the current year impacts of the TCJ Act on the effective tax rate, and the following provisional estimates of the adjustments resulting directly from the enactment of the TCJ Act based on information available, prepared, or analyzed as of February 3, 2018 in reasonable detail:

	Fiscal 2018
(in millions)	Income tax benefit (expense)
Net impact on remeasurement of US deferred tax assets and liabilities	$	64.7
Net impact of reduce US tax rate on income from October 29, 2017 through February 3, 2018	21.5
Net benefit of the TCJ Act	$	86.2

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets (liabilities) consisted of the following:

	February 3, 2018									January 28, 2017
(in millions)	Assets			(Liabilities)			Total			Assets			(Liabilities)			Total
Intangible assets	$	—		$	(130.9	)	$	(130.9	)	$	—		$	(160.1	)	$	(160.1	)
US property, plant and equipment	—			(65.2		)	(65.2		)	—			(86.2		)	(86.2		)
Foreign property, plant and equipment	6.2			—			6.2			5.0			—			5.0
Inventory valuation	—			(193.7		)	(193.7		)	—			(289.4		)	(289.4		)
Allowances for doubtful accounts	34.4			—			34.4			60.4			—			60.4
Revenue deferral	147.1			—			147.1			216.0			—			216.0
Derivative instruments	—			(0.3		)	(0.3		)	—			—			—
Straight-line lease payments	26.5			—			26.5			37.5			—			37.5
Deferred compensation	9.2			—			9.2			16.5			—			16.5
Retirement benefit obligations	—			(7.6		)	(7.6		)	—			(6.1		)	(6.1		)
Share-based compensation	4.4			—			4.4			5.7			—			5.7
Other temporary differences	47.1			—			47.1			51.0			—			51.0
Net operating losses and foreign tax credits	56.9			—			56.9			69.2			—			69.2
Value of foreign capital losses	12.0			—			12.0			11.3			—			11.3
Total gross deferred tax assets (liabilities)	$	343.8		$	(397.7	)	$	(53.9	)	$	472.6		$	(541.8	)	$	(69.2	)
Valuation allowance	(37.0		)	—			(37.0		)	(31.5		)	—			(31.5		)
Deferred tax assets (liabilities)	$	306.8		$	(397.7	)	$	(90.9	)	$	441.1		$	(541.8	)	$	(100.7	)
Disclosed as:
Non-current assets							$	1.4								$	0.7
Non-current liabilities							(92.3		)							(101.4		)
Deferred tax assets (liabilities)							$	(90.9	)							$	(100.7	)

Summary of Activity Related to Unrecognized Tax Benefits

The following table summarizes the activity related to the Company’s unrecognized tax benefits for US federal, US state and non-US tax jurisdictions:

(in millions)	Fiscal 2018			Fiscal 2017			Fiscal 2016
Unrecognized tax benefits, beginning of period	$	12.0		$	11.4		$	11.4
Increases related to current year tax positions	2.3			2.4			2.0
Lapse of statute of limitations	(2.4		)	(1.9		)	(1.9		)
Difference on foreign currency translation	0.1			0.1			(0.1		)
Unrecognized tax benefits, end of period	$	12.0		$	12.0		$	11.4

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Other Operating Income, Net (Tables)

12 Months Ended

Feb. 03, 2018

Other Income and Expenses [Abstract]

Summary of Other Operating Income

(in millions)	Fiscal 2018		Fiscal 2017		Fiscal 2016
Interest income from in-house customer finance programs(1)	$	258.1	$	282.5	$	252.6
Other	2.7		0.1		(1.7		)
Other operating income, net	$	260.8	$	282.6	$	250.9

⁽¹⁾  See Note 3 and Note 12 for additional information.

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Accounts Receivable, Net (Tables)

12 Months Ended

Feb. 03, 2018

Receivables [Abstract]

Accounts Receivable by Portfolio Segment, Net

(in millions)	February 3, 2018		January 28, 2017
Accounts receivable by portfolio segment, net:
Sterling Jewelers customer in-house finance receivables	$	649.4	$	1,813.3
Zale customer in-house finance receivables	33.5		33.4
Other accounts receivable	9.6		11.3
Total accounts receivable, net	$	692.5	$	1,858.0

Summary of Allowance for Credit Losses

The allowance for credit losses on Sterling Jewelers remaining customer in-house finance receivables is shown below:

(in millions)	Fiscal 2018			Fiscal 2017			Fiscal 2016
Beginning balance:	$	(138.7	)	$	(130.0	)	$	(113.1	)
Charge-offs, net	221.2			203.4			173.6
Recoveries	34.3			35.1			35.3
Provision	(251.0		)	(247.2		)	(225.8		)
Reversal of allowance on receivables sold	20.7			—			—
Ending balance	(113.5		)	(138.7		)	(130.0		)
Ending receivable balance evaluated for impairment	762.9			1,952.0			1,855.9
Sterling Jewelers customer in-house finance receivables, net	649.4			1,813.3			1,725.9

Credit Quality Indicator and Age Analysis of Past Due Receivables

The credit quality indicator and age analysis of Sterling Jewelers customer in-house finance receivables are shown below under the contractual basis:

	February 3, 2018
(in millions)	Gross		Valuation allowance
Performing (accrual status):
0 - 120 days past due	$	703.4	$	(54.0	)
121 or more days past due	59.5		(59.5		)
	$	762.9	$	(113.5	)
Valuation allowance as a % of ending receivable balance			14.9		%

Prior to the fourth quarter of Fiscal 2018, the Company’s calculation of the allowance for credit losses was based on a recency measure of delinquency. The credit quality indicator and age analysis of Sterling Jewelers customer in-house finance receivables prior to the sale of the prime-only credit portion of the in-house receivable portfolio as of January 28, 2017 and January 30, 2016 are shown below under the recency basis:

	January 28, 2017					January 30, 2016
(in millions)	Gross		Valuation allowance			Gross		Valuation allowance
Performing (accrual status):
Current, aged 0 – 30 days	$	1,538.2	$	(47.2	)	$	1,473.0	$	(45.4	)
Past due, aged 31 – 60 days	282.0		(9.0		)	259.6		(8.3		)
Past due, aged 61 – 90 days	51.6		(2.3		)	49.2		(2.2		)
Non Performing (nonaccrual status):
Past due, aged more than 90 days	80.2		(80.2		)	74.1		(74.1		)
	$	1,952.0	$	(138.7	)	$	1,855.9	$	(130.0	)
Valuation allowance as a % of ending receivable balance			7.1		%			7.0		%

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Inventories (Tables)

12 Months Ended

Feb. 03, 2018

Inventory Disclosure [Abstract]

Summary of Inventory

The following table summarizes the details of the Company’s inventory:

(in millions)	February 3, 2018		January 28, 2017
Raw materials	$	72.0	$	60.8
Finished goods	2,208.5		2,388.5
Total inventories	$	2,280.5	$	2,449.3

Schedule of Inventory Reserves

Inventory reserves

(in millions)	Fiscal 2018			Fiscal 2017			Fiscal 2016
Inventory reserve, beginning of period	$	43.2		$	43.2		$	28.4
Charged to profit	75.8			57.3			87.6
Utilization(1)	(78.4		)	(57.3		)	(72.8		)
Inventory reserve, end of period	$	40.6		$	43.2		$	43.2

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

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Property, Plant and Equipment, Net (Tables)

12 Months Ended

Feb. 03, 2018

Property, Plant and Equipment [Abstract]

Schedule of property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation, amortization and impairment charges. 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 and software	Ranging from 3 – 5 years

(in millions)	February 3, 2018			January 28, 2017
Land and buildings	$	35.9		$	33.5
Leasehold improvements	689.8			632.4
Furniture and fixtures	804.2			761.0
Equipment	177.0			137.7
Software	271.4			211.0
Construction in progress	97.2			96.7
Total	$	2,075.5		$	1,872.3
Accumulated depreciation and amortization	(1,197.6		)	(1,049.4		)
Property, plant and equipment, net	$	877.9		$	822.9

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Goodwill and Intangibles (Tables)

12 Months Ended

Feb. 03, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Goodwill by Reporting Unit

The following table summarizes the Company’s goodwill by reportable segment:

(in millions)	Sterling Jewelers		Zale Jewelry		Piercing Pagoda		UK Jewelry		Other		Total
Balance at January 30, 2016	$	23.2	$	488.7	$	—	$	—	$	3.6	$	515.5
Impact of foreign exchange	—		2.1		—		—		—		2.1
Balance at January 28, 2017	$	23.2	$	490.8	$	—	$	—	$	3.6	$	517.6
Acquisitions	301.7		—		—		—		—		301.7
Impact of foreign exchange	—		2.4		—		—		—		2.4
Balance at February 3, 2018	$	324.9	$	493.2	$	—	$	—	$	3.6	$	821.7

Composition of Intangible Assets and Liabilities

The following table provides additional detail regarding the composition of intangible assets and liabilities:

	February 3, 2018									January 28, 2017
(in millions)	Gross carrying amount			Accumulated amortization			Net carrying amount			Gross carrying amount			Accumulated amortization			Net carrying amount
Intangible assets, net:
Definite-lived intangible assets	49.8			(46.7		)	3.1			49.0			(36.8		)	12.2
Indefinite-lived intangible assets	478.4			—			478.4			404.8			—			404.8
Total intangible assets, net	$	528.2		$	(46.7	)	$	481.5		$	453.8		$	(36.8	)	$	417.0
Intangible liabilities, net	$	(114.5	)	$	85.2		$	(29.3	)	$	(113.9	)	$	71.7		$	(42.2	)

Summary of Expected Future Amortization Expense for Intangible Assets

Expected future amortization for intangible assets and future amortization for intangible liabilities recorded at February 3, 2018 follows:

(in millions)	Intangible assets, net amortization		Intangible liabilities amortization
2019	$	2.7	$	(7.7	)
2020	0.3		(5.7		)
2021	0.1		(5.4		)
2022	—		(5.4		)
2023	—		(5.1		)
Total	$	3.1	$	(29.3	)

Summary of Expected Future Amortization of Intangible Liabilities

Expected future amortization for intangible assets and future amortization for intangible liabilities recorded at February 3, 2018 follows:

(in millions)	Intangible assets, net amortization		Intangible liabilities amortization
2019	$	2.7	$	(7.7	)
2020	0.3		(5.7		)
2021	0.1		(5.4		)
2022	—		(5.4		)
2023	—		(5.1		)
Total	$	3.1	$	(29.3	)

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Other Assets (Tables)

12 Months Ended

Feb. 03, 2018

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of Other Assets

(in millions)	February 3, 2018		January 28, 2017
Deferred ESP selling costs	$	89.5	$	86.1
Investments(1)	27.9		27.2
Other assets	53.8		51.8
Total other assets	$	171.2	$	165.1

⁽¹⁾  See Note 17 for additional detail.

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Investments (Tables)

12 Months Ended

Feb. 03, 2018

Investments, Debt and Equity Securities [Abstract]

Schedule of Available-for-Sale Securities

All investments are classified as available-for-sale and include the following:

	February 3, 2018							January 28, 2017
(in millions)	Cost		Unrealized Gain (Loss)			Fair Value		Cost		Unrealized Gain (Loss)			Fair Value
US Treasury securities	$	8.3	$	(0.8	)	$	7.5	$	8.8	$	(0.7	)	$	8.1
US government agency securities	5.3		(0.2		)	5.1		4.6		(0.2		)	4.4
Corporate bonds and notes	11.0		(0.2		)	10.8		11.0		(0.1		)	10.9
Corporate equity securities	3.5		1.0			4.5		3.5		0.3			3.8
Total investments	$	28.1	$	(0.2	)	$	27.9	$	27.9	$	(0.7	)	$	27.2

Investments in debt securities outstanding as of February 3, 2018 mature as follows:

(in millions)	Cost		Fair Value
Less than one year	$	2.9	$	2.3
Year two through year five	16.9		16.4
Year six through year ten	4.8		4.7
Total investment in debt securities	$	24.6	$	23.4

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Derivatives (Tables)

12 Months Ended

Feb. 03, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Fair Value and Presentation of Derivative Instruments

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

	Fair value of derivative assets
(in millions)	Balance sheet location	February 3, 2018		January 28, 2017
Derivatives designated as hedging instruments:
Foreign currency contracts	Other current assets	$	—	$	1.4
Interest rate swaps	Other assets	2.2		0.4
		2.2		1.8
Derivatives not designated as hedging instruments:
Foreign currency contracts	Other current assets	—		1.8
Total derivative assets		$	2.2	$	3.6

	Fair value of derivative liabilities
(in millions)	Balance sheet location	February 3, 2018			January 28, 2017
Derivatives designated as hedging instruments:
Foreign currency contracts	Other current liabilities	$	(1.4	)	$	(0.2	)
Commodity contracts	Other current liabilities	(0.1		)	(3.4		)
		(1.5		)	(3.6		)
Derivatives not designated as hedging instruments:
Foreign currency contracts	Other current liabilities	(0.9		)	—
Total derivative liabilities		$	(2.4	)	$	(3.6	)

Summary of Pre-Tax Gains (Losses) Recorded

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

(in millions)	February 3, 2018			January 28, 2017
Foreign currency contracts	$	(2.4	)	$	4.1
Commodity contracts	1.4			(2.1		)
Interest rate swaps	2.2			0.4
Gains recorded in AOCI	$	1.2		$	2.4

Summary of Derivative Instruments

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

Foreign currency contracts

(in millions)	Income statement caption	Fiscal 2018			Fiscal 2017
Gains recorded in AOCI, beginning of period		$	4.1		$	1.4
Current period (losses) gains recognized in OCI		(3.3		)	5.4
Gains reclassified from AOCI to net income	Cost of sales	(3.2		)	(2.7		)
(Losses) gains recorded in AOCI, end of period		$	(2.4	)	$	4.1

Commodity contracts

(in millions)	Income statement caption	Fiscal 2018			Fiscal 2017
Losses recorded in AOCI, beginning of period		$	(2.1	)	$	(3.7	)
Current period gains recognized in OCI		5.2			1.8
Gains reclassified from AOCI to net income	Cost of sales	(1.7		)	(0.2		)
Gains (losses) recorded in AOCI, end of period		$	1.4		$	(2.1	)

Interest rate swaps

(in millions)	Income statement caption	Fiscal 2018		Fiscal 2017
Gains (losses) recorded in AOCI, beginning of period		$	0.4	$	(3.4	)
Current period gains recognized in OCI		1.5		1.6
Losses reclassified from AOCI to net income	Interest expense, net	0.3		2.2
Gains recorded in AOCI, end of period		$	2.2	$	0.4

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 gains (losses) recognized in net income
(in millions)		Fiscal 2018		Fiscal 2017
Derivatives not designated as hedging instruments:
Foreign currency contracts	Other operating income, net	$	8.4	$	6.3

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Fair Value Measurement (Tables)

12 Months Ended

Feb. 03, 2018

Fair Value Disclosures [Abstract]

Methods to Determine Fair Value on Instrument-Specific Basis

The methods Signet uses to determine fair value on an instrument-specific basis are detailed below:

	February 3, 2018								January 28, 2017
(in millions)	Carrying Value			Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)			Carrying Value			Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)
Assets:
US Treasury securities	$	7.5		$	7.5	$	—		$	8.1		$	8.1	$	—
Corporate equity securities	4.5			4.5		—			3.8			3.8		—
Foreign currency contracts	—			—		—			3.2			—		3.2
Interest rate swaps	2.2			—		2.2			0.4			—		0.4
US government agency securities	5.1			—		5.1			4.4			—		4.4
Corporate bonds and notes	10.8			—		10.8			10.9			—		10.9
Total assets	$	30.1		$	12.0	$	18.1		$	30.8		$	11.9	$	18.9
Liabilities:
Foreign currency contracts	$	(2.3	)	$	—	$	(2.3	)	$	(0.2	)	$	—	$	(0.2	)
Commodity contracts	(0.1		)	—		(0.1		)	(3.4		)	—		(3.4		)
Total liabilities	$	(2.4	)	$	—	$	(2.4	)	$	(3.6	)	$	—	$	(3.6	)

Schedule of Carrying Amount and Fair Value of Outstanding Debt

The carrying amount and fair value of outstanding debt at February 3, 2018 and January 28, 2017 were as follows:

	February 3, 2018				January 28, 2017
(in millions)	Carrying Value		Fair Value		Carrying Value		Fair Value
Long-term debt
Senior notes (Level 2)	$	394.5	$	396.3	$	393.7	$	391.2
Securitization facility (Level 2)	—		—		599.7		600.0
Term loan (Level 2)	323.5		326.2		345.1		348.6
Total	$	718.0	$	722.5	$	1,338.5	$	1,339.8

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Pension Plans (Tables)

12 Months Ended

Feb. 03, 2018

Retirement Benefits [Abstract]

Schedule 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 3, 2018 and January 28, 2017:

(in millions)	Fiscal 2018			Fiscal 2017
Change in UK Plan assets:
Fair value at beginning of year	$	247.6		$	266.2
Actual return on UK Plan assets	11.0			18.2
Employer contributions	3.2			3.3
Members’ contributions	0.4			0.6
Benefits paid	(8.7		)	(9.9		)
Plan settlements	(10.8		)	—
Foreign currency translation	29.5			(30.8		)
Fair value at end of year	$	272.2		$	247.6

Schedule of Changes in Projected Benefit Obligations

(in millions)	Fiscal 2018			Fiscal 2017
Change in benefit obligation:
Benefit obligation at beginning of year	$	215.7		$	214.9
Service cost	2.1			2.0
Past service cost	—			0.5
Interest cost	6.1			7.2
Members’ contributions	0.4			0.6
Actuarial (gain) loss	2.3			24.1
Benefits paid	(8.7		)	(9.9		)
Plan settlements	(10.8		)	0.0
Foreign currency translation	25.3			(23.7		)
Benefit obligation at end of year	$	232.4		$	215.7
Funded status at end of year	$	39.8		$	31.9

Schedule of Amounts Recognized in Balance Sheet

(in millions)	February 3, 2018		January 28, 2017
Amounts recognized in the balance sheet consist of:
Non-current assets	$	39.8	$	31.9

Schedule of Net Periodic Benefit Cost Not yet Recognized

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

(in millions)	February 3, 2018			January 28, 2017			January 30, 2016
Net actuarial losses	$	(51.1	)	$	(55.5	)	$	(43.1	)
Net prior service credits	2.4			9.2			11.1

Components of Net Benefit Costs

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

(in millions)	Fiscal 2018			Fiscal 2017			Fiscal 2016
Components of net periodic pension benefit (cost):
Service cost	$	(2.1	)	$	(2.0	)	$	(2.6	)
Interest cost	(6.1		)	(7.2		)	(7.7		)
Expected return on UK Plan assets	9.4			10.4			11.5
Amortization of unrecognized actuarial losses	(2.8		)	(1.5		)	(3.4		)
Amortization of unrecognized net prior service credits	1.4			1.9			2.2
Net curtailment gain and settlement loss	3.7			—			—
Net periodic pension benefit	$	3.5		$	1.6		$	—
Other changes in assets and benefit obligations recognized in OCI	(2.9		)	(17.8		)	14.4
Total recognized in net periodic pension benefit (cost) and OCI	$	0.6		$	(16.2	)	$	14.4

Schedule of Assumptions Used

	February 3, 2018		January 28, 2017
Assumptions used to determine benefit obligations (at the end of the year):
Discount rate	2.60	%	2.90	%
Salary increases	2.50	%	2.00	%
Assumptions used to determine net periodic pension costs (at the start of the year):
Discount rate	2.90	%	3.60	%
Expected return on UK Plan assets	3.80	%	4.20	%
Salary increases	2.00	%	2.50	%

Schedule of Allocation of Plan Assets

The value and classification of these assets are as follows:

	Fair value measurements as of February 3, 2018						Fair value measurements as of January 28, 2017
(in millions)	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)
Assets:
Corporate-owned life insurance plans	$	7.3	$	—	$	7.3	$	7.5	$	—	$	7.5
Money market funds	30.2		30.2		—		29.6		29.6		—
Total assets	$	37.5	$	30.2	$	7.3	$	37.1	$	29.6	$	7.5

The methods Signet uses to determine fair value on an instrument-specific basis are detailed below:

	Fair value measurements as of February 3, 2018								Fair value measurements as of January 28, 2017
(in millions)	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)
Asset category:
Diversified equity securities	$	24.0	$	—	$	24.0	$	—	$	22.3	$	—	$	22.3	$	—
Diversified growth funds	96.3		49.4		46.9		—		80.9		40.7		40.2		—
Fixed income – government bonds	83.9		—		83.9		—		81.0		—		81.0		—
Fixed income – corporate bonds	52.6		—		52.6		—		48.1		—		48.1		—
Property	14.3		—		—		14.3		11.8		—		—		11.8
Cash	1.1		1.1		—		—		3.5		3.5		—		—
Total	$	272.2	$	50.5	$	207.4	$	14.3	$	247.6	$	44.2	$	191.6	$	11.8

Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets

The table below sets forth changes in the fair value of the Level 3 investment assets in Fiscal 2018 and Fiscal 2017:

(in millions)	Significant unobservable inputs (Level 3)
Balance as of January 30, 2016	$	13.0
Actual return on assets	(1.2		)
Balance as of January 28, 2017	$	11.8
Actual return on assets	2.5
Balance as of February 3, 2018	$	14.3

Schedule 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)	Expected benefit payments
Fiscal 2019	$	9.6
Fiscal 2020	9.5
Fiscal 2021	10.0
Fiscal 2022	10.3
Fiscal 2023	10.3
Thereafter	$	53.4

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Loans, Overdrafts and Long-Term Debt (Tables)

12 Months Ended

Feb. 03, 2018

Debt Disclosure [Abstract]

Summary of Loans, Overdrafts and Long-Term Debt

(in millions)	February 3, 2018			January 28, 2017
Debt:
Senior unsecured notes due 2024, net of unamortized discount	$	398.9		$	398.8
Securitization facility	—			600.0
Senior unsecured term loan	326.2			348.6
Revolving credit facility	—			56.0
Bank overdrafts	14.2			14.2
Total debt	$	739.3		$	1,417.6
Less: Current portion of loans and overdrafts	(44.0		)	(91.1		)
Less: Unamortized capitalized debt issuance fees	(7.1		)	(8.6		)
Total long-term debt	$	688.2		$	1,317.9

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Accrued Expenses and Other Current Liabilities (Tables)

12 Months Ended

Feb. 03, 2018

Payables and Accruals [Abstract]

Summary of Accrued Expenses And Other Current Liabilities

(in millions)	February 3, 2018		January 28, 2017
Accrued compensation	$	68.3	$	105.8
Other liabilities	34.7		33.0
Other taxes	36.3		45.1
Payroll taxes	11.8		9.9
Accrued expenses	296.9		284.4
Total accrued expenses and other current liabilities	$	448.0	$	478.2

Sales Returns Reserve

The sales returns reserve, included in accrued expenses, is as follows:

(in millions)	Fiscal 2018		Fiscal 2017			Fiscal 2016
Sales return reserve, beginning of period	$	13.0	$	14.0		$	15.3
Net adjustment(1)	0.5		(1.0		)	(1.3		)
Sales return reserve, end of period	$	13.5	$	13.0		$	14.0

⁽¹⁾     Net adjustment relates to sales returns previously provided for, changes in estimate and the impact of foreign exchange translation.

Warranty Reserve for Diamond and Gemstone Guarantee

The warranty reserve for diamond and gemstone guarantee, included in accrued expenses and other current liabilities and other non-current liabilities, is as follows:

(in millions)	Fiscal 2018			Fiscal 2017			Fiscal 2016
Warranty reserve, beginning of period	$	40.0		$	41.9		$	44.9
Warranty expense	8.5			11.5			10.8
Utilized(1)	(11.3		)	(13.4		)	(13.8		)
Warranty reserve, end of period	$	37.2		$	40.0		$	41.9

⁽¹⁾  Includes impact of foreign exchange translation.

(in millions)	February 3, 2018		January 28, 2017
Disclosed as:
Current liabilities(1)	$	11.5	$	13.0
Non-current liabilities (see Note 23)	25.7		27.0
Total warranty reserve	$	37.2	$	40.0

⁽¹⁾  Included within accrued expenses above.

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Deferred Revenue (Tables)

12 Months Ended

Feb. 03, 2018

Deferred Revenue Disclosure [Abstract]

Summary of Deferred Revenue

Deferred revenue is comprised primarily of ESP and voucher promotions and other as follows:

(in millions)	February 3, 2018		January 28, 2017
Sterling Jewelers ESP deferred revenue	$	738.0	$	737.4
Zale ESP deferred revenue	178.1		168.2
Voucher promotions and other	41.4		30.3
Total deferred revenue	$	957.5	$	935.9
Disclosed as:
Current liabilities	$	288.6	$	276.9
Non-current liabilities	668.9		659.0
Total deferred revenue	$	957.5	$	935.9

ESP deferred revenue

(in millions)	Fiscal 2018			Fiscal 2017
Sterling Jewelers ESP deferred revenue, beginning of period	$	737.4		$	715.1
Plans sold	269.2			290.8
Revenue recognized	(268.6		)	(268.5		)
Sterling Jewelers ESP deferred revenue, end of period	$	738.0		$	737.4

(in millions)	Fiscal 2018			Fiscal 2017
Zale ESP deferred revenue, beginning of period	$	168.2		$	146.1
Plans sold(1)	140.1			150.1
Revenue recognized	(130.2		)	(128.0		)
Zale ESP deferred revenue, end of period	$	178.1		$	168.2

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Other Liabilities-Non-Current (Tables)

12 Months Ended

Feb. 03, 2018

Other Liabilities Disclosure [Abstract]

Schedule of Other Liabilities

(in millions)	February 3, 2018		January 28, 2017
Straight-line rent	$	91.2	$	87.2
Deferred compensation	32.2		40.7
Warranty reserve	25.7		27.0
Lease loss reserve	1.2		1.3
Other liabilities	89.3		57.5
Total other liabilities	$	239.6	$	213.7

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Share-Based Compensation (Tables)

12 Months Ended

Feb. 03, 2018

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Share-Based Compensation Expense and Associated Tax Benefits

Share-based compensation expense and the associated tax benefits recognized in the consolidated income statements are as follows:

(in millions)	Fiscal 2018			Fiscal 2017			Fiscal 2016
Share-based compensation expense	$	16.1		$	8.0		$	16.4
Income tax benefit	$	(5.3	)	$	(2.8	)	$	(5.9	)

Summary of Unrecognized Compensation Cost Related to Outstanding Awards

As of February 3, 2018, unrecognized compensation cost related to unvested awards granted under share-based compensation plans is as follows:

	Unrecognized Compensation Cost		Weighted average period
	(in millions)
Omnibus Plan	$	27.6	2.0 years
Share Saving Plans	4.1		1.7 years
Total	$	31.7

Omnibus Plan

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

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 2018			Fiscal 2017			Fiscal 2016
Share price	$	65.74		$	109.03		$	136.37
Risk free interest rate	1.4		%	1.0		%	0.8		%
Expected term	2.7 years			2.8 years			2.9 years
Expected volatility	32.3		%	28.5		%	25.4		%
Dividend yield	2.1		%	1.1		%	0.7		%
Fair value	$	63.42		$	106.48		$	134.46

Activity for Awards Granted Under the Plan

The Fiscal 2018 activity for awards granted under the Omnibus Plan is as follows:

	Omnibus Plans
(in millions, except per share amounts)	No. of shares		Weighted average grant date fair value		Weighted average remaining contractual life	Intrinsic value(1)
Outstanding at January 28, 2017	0.7		$	111.98	1.3 years	$	53.0
Fiscal 2018 activity:
Granted	0.9		63.42
Vested	(0.1	)	105.76
Lapsed	(0.4	)	84.41
Outstanding at February 3, 2018	1.1		$	82.65	1.5 years	$	55.0

⁽¹⁾  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:

(in millions)	Fiscal 2018		Fiscal 2017		Fiscal 2016
Total intrinsic value of awards vested	$	7.1	$	13.6	$	22.2

Saving Share Plans

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

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 2018			Fiscal 2017			Fiscal 2016
Share price	$	59.84		$	84.37		$	139.18
Exercise price	$	52.00		$	67.24		$	114.67
Risk free interest rate	1.2		%	0.6		%	0.7		%
Expected term	2.7 years			2.7 years			2.6 years
Expected volatility	37.0		%	31.3		%	27.1		%
Dividend yield	2.7		%	1.7		%	0.8		%
Fair value	$	15.22		$	22.82		$	34.76

Activity for Awards Granted Under the Plan

The Fiscal 2018 activity for awards granted under the Share Saving Plans is as follows:

	Share Saving Plans
(in millions, except per share amounts)	No. of shares		Weighted average exercise price		Weighted average remaining contractual life	Intrinsic value(1)
Outstanding at January 28, 2017	0.3		$	74.30	2.0 years	$	3.0
Fiscal 2018 activity:
Granted	0.1		52.00
Exercised	—		46.55
Lapsed	(0.1	)	82.91
Outstanding at February 3, 2018	0.3		$	62.80	1.8 years	$	—
Exercisable at January 28, 2017	—		$	—		$	—
Exercisable at February 3, 2018	—		$	—		$	—

⁽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:

(in millions, except per share amounts)	Fiscal 2018		Fiscal 2017		Fiscal 2016
Weighted average grant date fair value per share of awards granted	$	15.22	$	22.82	$	34.76
Total intrinsic value of options exercised	$	0.1	$	1.5	$	6.4
Cash received from share options exercised	$	0.3	$	1.4	$	4.0

XML

Commitments and Contingencies (Tables)

12 Months Ended

Feb. 03, 2018

Commitments and Contingencies Disclosure [Abstract]

Rental Expense For Operating Leases

Rental expense for operating leases is as follows:

(in millions)	Fiscal 2018			Fiscal 2017			Fiscal 2016
Minimum rentals	$	528.1		$	524.4		$	525.7
Contingent rent	8.5			10.2			15.3
Sublease income	(0.5		)	(0.6		)	(0.7		)
Total	$	536.1		$	534.0		$	540.3

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 2019	$	460.3
Fiscal 2020	405.3
Fiscal 2021	371.4
Fiscal 2022	328.8
Fiscal 2023	284.8
Thereafter	907.3
Total	$	2,757.9

XML

Condensed Consolidating Financial Information (Tables)

12 Months Ended

Feb. 03, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Income Statement

Condensed Consolidating Income Statement

For the 53 week period endedFebruary 3, 2018

(in millions)	Signet Jewelers Limited			Signet UK Finance plc			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Sales	$	—		$	—		$	5,866.6		$	386.4		$	—		$	6,253.0
Cost of sales	—			—			(3,926.6		)	(136.4		)	—			(4,063.0		)
Gross margin	—			—			1,940.0			250.0			—			2,190.0
Selling, general and administrative expenses	(1.9		)	—			(1,738.2		)	(132.1		)	—			(1,872.2		)
Credit transaction, net	—			—			1.3			—			—			1.3
Other operating income, net	0.1			—			260.3			0.4			—			260.8
Operating (loss) income	(1.8		)	—			463.4			118.3			—			579.9
Intra-entity interest income (expense)	—			18.8			(190.2		)	171.4			—			—
Interest expense, net	—			(19.9		)	(21.6		)	(11.2		)	—			(52.7		)
(Loss) income before income taxes	(1.8		)	(1.1		)	251.6			278.5			—			527.2
Income taxes	—			0.2			(21.3		)	13.2			—			(7.9		)
Equity in income of subsidiaries	521.1			—			229.6			233.1			(983.8		)	—
Net income (loss)	519.3			(0.9		)	459.9			524.8			(983.8		)	519.3
Dividends on redeemable convertible preferred shares	(32.9		)	—			—			—			—			(32.9		)
Net income (loss) attributable to common shareholders	$	486.4		$	(0.9	)	$	459.9		$	524.8		$	(983.8	)	$	486.4

Condensed Consolidating Income Statement

For the 52 week period endedJanuary 28, 2017

(in millions)	Signet Jewelers Limited			Signet UK Finance plc			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Sales	$	—		$	—		$	6,141.9		$	266.5		$	—		$	6,408.4
Cost of sales	—			—			(3,997.2		)	(50.4		)	—			(4,047.6		)
Gross margin	—			—			2,144.7			216.1			—			2,360.8
Selling, general and administrative expenses	(1.3		)	—			(1,775.1		)	(103.8		)	—			(1,880.2		)
Other operating income, net	—			—			293.8			(11.2		)	—			282.6
Operating (loss) income	(1.3		)	—			663.4			101.1			—			763.2
Intra-entity interest income (expense)	—			18.8			(188.4		)	169.6			—			—
Interest expense, net	—			(19.8		)	(16.6		)	(13.0		)	—			(49.4		)
(Loss) income before income taxes	(1.3		)	(1.0		)	458.4			257.7			—			713.8
Income taxes	—			0.2			(175.1		)	4.3			—			(170.6		)
Equity in income of subsidiaries	544.5			—			276.4			295.7			(1,116.6		)	—
Net income (loss)	543.2			(0.8		)	559.7			557.7			(1,116.6		)	543.2
Dividends on redeemable convertible preferred shares	(11.9		)	—			—			—			—			(11.9		)
Net income (loss) attributable to common shareholders	$	531.3		$	(0.8	)	$	559.7		$	557.7		$	(1,116.6	)	$	531.3

Condensed Consolidating Income Statement

For the 52 week period endedJanuary 30, 2016

(in millions)	Signet Jewelers Limited			Signet UK Finance plc			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Sales	$	—		$	—		$	6,444.8		$	105.4		$	—		$	6,550.2
Cost of sales	—			—			(4,089.3		)	(20.5		)	—			(4,109.8		)
Gross margin	—			—			2,355.5			84.9			—			2,440.4
Selling, general and administrative expenses	(2.2		)	—			(1,942.7		)	(42.7		)	—			(1,987.6		)
Other operating income, net	—			—			254.8			(3.9		)	—			250.9
Operating (loss) income	(2.2		)	—			667.6			38.3			—			703.7
Intra-entity interest income (expense)	—			18.8			(186.0		)	167.2			—			—
Interest expense, net	—			(19.9		)	(14.8		)	(11.2		)	—			(45.9		)
(Loss) income before income taxes	(2.2		)	(1.1		)	466.8			194.3			—			657.8
Income taxes	—			0.2			(192.7		)	2.6			—			(189.9		)
Equity in income of subsidiaries	470.1			—			281.4			293.9			(1,045.4		)	—
Net income (loss)	467.9			(0.9		)	555.5			490.8			(1,045.4		)	467.9
Dividends on redeemable convertible preferred shares	—			—			—			—			—			—
Net income (loss) attributable to common shareholders	$	467.9		$	(0.9	)	$	555.5		$	490.8		$	(1,045.4	)	$	467.9

Condensed Statement of Comprehensive Income

Condensed Consolidating Statement of Comprehensive Income

For the 53 week period endedFebruary 3, 2018

(in millions)	Signet Jewelers Limited			Signet UK Finance plc			Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Eliminations			Consolidated
Net income (loss)	$	519.3		$	(0.9	)	$	459.9		$	524.8	$	(983.8	)	$	519.3
Other comprehensive (loss) income:
Foreign currency translation adjustments	50.9			—			50.2			0.7		(50.9		)	50.9
Available-for-sale securities:
Unrealized gain (loss)	0.3			—			—			0.3		(0.3		)	0.3
Cash flow hedges:
Unrealized gain (loss)	1.8			—			1.8			—		(1.8		)	1.8
Reclassification adjustment for losses to net income	(3.5		)	—			(3.5		)	—		3.5			(3.5		)
Pension plan:
Actuarial gain (loss)	—			—			—			—		—			—
Reclassification adjustment to net income for amortization of actuarial losses	2.2			—			2.2			—		(2.2		)	2.2
Prior service costs	(0.5		)	—			(0.5		)	—		0.5			(0.5		)
Reclassification adjustment to net income for amortization of net prior service credits	(1.1		)	—			(1.1		)	—		1.1			(1.1		)
Net curtailment gain and settlement loss	(3.0		)	—			(3.0		)	—		3.0			(3.0		)
Total other comprehensive (loss) income	47.1			—			46.1			1.0		(47.1		)	47.1
Total comprehensive income (loss)	$	566.4		$	(0.9	)	$	506.0		$	525.8	$	(1,030.9	)	$	566.4

Condensed Consolidating Statement of Comprehensive Income

For the 52 week period endedJanuary 28, 2017

(in millions)	Signet Jewelers Limited			Signet UK Finance plc			Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Eliminations			Consolidated
Net income (loss)	$	543.2		$	(0.8	)	$	559.7		$	557.7	$	(1,116.6	)	$	543.2
Other comprehensive (loss) income:
Foreign currency translation adjustments	(25.6		)	—			(31.2		)	5.6		25.6			(25.6		)
Available-for-sale securities:
Unrealized gain (loss)	—			—			—			—		—			—
Cash flow hedges:
Unrealized gain (loss)	6.9			—			6.9			—		(6.9		)	6.9
Reclassification adjustment for losses to net income	(0.6		)	—			(0.6		)	—		0.6			(0.6		)
Pension plan:
Actuarial gain (loss)	(13.6		)	—			(13.6		)	—		13.6			(13.6		)
Reclassification adjustment to net income for amortization of actuarial losses	1.2			—			1.2			—		(1.2		)	1.2
Prior service costs	(0.4		)	—			(0.4		)	—		0.4			(0.4		)
Reclassification adjustment to net income for amortization of net prior service credits	(1.5		)	—			(1.5		)	—		1.5			(1.5		)
Total other comprehensive (loss) income	(33.6		)	—			(39.2		)	5.6		33.6			(33.6		)
Total comprehensive income (loss)	$	509.6		$	(0.8	)	$	520.5		$	563.3	$	(1,083.0	)	$	509.6

Condensed Consolidating Statement of Comprehensive Income

For the 52 week period endedJanuary 30, 2016

(in millions)	Signet Jewelers Limited			Signet UK Finance plc			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	467.9		$	(0.9	)	$	555.5		$	490.8		$	(1,045.4	)	$	467.9
Other comprehensive (loss) income:
Foreign currency translation adjustments	(40.2		)	—			(44.8		)	4.6			40.2			(40.2		)
Available-for-sale securities:
Unrealized gain (loss)	(0.4		)	—			—			(0.4		)	0.4			(0.4		)
Cash flow hedges:
Unrealized gain (loss)	(11.8		)	—			(11.8		)	—			11.8			(11.8		)
Reclassification adjustment for losses to net income	3.5			—			3.5			—			(3.5		)	3.5
Pension plan:
Actuarial gain (loss)	10.9			—			10.9			—			(10.9		)	10.9
Reclassification adjustment to net income for amortization of actuarial losses	2.7			—			2.7			—			(2.7		)	2.7
Prior service costs	(0.5		)	—			(0.5		)	—			0.5			(0.5		)
Reclassification adjustment to net income for amortization of net prior service credits	(1.7		)	—			(1.7		)	—			1.7			(1.7		)
Total other comprehensive (loss) income	(37.5		)	—			(41.7		)	4.2			37.5			(37.5		)
Total comprehensive income (loss)	$	430.4		$	(0.9	)	$	513.8		$	495.0		$	(1,007.9	)	$	430.4

Condensed Balance Sheet

Condensed Consolidating Balance Sheet

February 3, 2018

(in millions)	Signet Jewelers Limited		Signet UK Finance plc			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	1.7	$	0.1		$	150.5	$	72.8		$	—		$	225.1
Accounts receivable, net	—		—			692.5		—			—			692.5
Intra-entity receivables, net	—		2.9			—		166.9			(169.8		)	—
Other receivables	—		—			62.0		25.2			—			87.2
Other current assets	—		—			154.4		3.8			—			158.2
Income taxes	—		—			2.6		—			—			2.6
Inventories	—		—			2,201.3		79.2			—			2,280.5
Total current assets	1.7		3.0			3,263.3		347.9			(169.8		)	3,446.1
Non-current assets:
Property, plant and equipment, net	—		—			870.1		7.8			—			877.9
Goodwill	—		—			516.4		305.3			—			821.7
Intangible assets, net	—		—			410.9		70.6			—			481.5
Investment in subsidiaries	3,150.2		—			1,163.6		606.0			(4,919.8		)	—
Intra-entity receivables, net	—		400.0			—		2,859.0			(3,259.0		)	—
Other assets	—		—			140.1		31.1			—			171.2
Deferred tax assets	—		—			1.3		0.1			—			1.4
Retirement benefit asset	—		—			39.8		—			—			39.8
Total assets	$	3,151.9	$	403.0		$	6,405.5	$	4,227.8		$	(8,348.6	)	$	5,839.6
Liabilities and Shareholders’ equity
Current liabilities:
Loans and overdrafts	$	—	$	(0.7	)	$	44.7	$	—		$	—		$	44.0
Accounts payable	—		—			202.2		34.8			—			237.0
Intra-entity payables, net	11.3		—			158.5		—			(169.8		)	—
Accrued expenses and other current liabilities	27.2		2.4			397.5		20.9			—			448.0
Deferred revenue	—		—			276.2		12.4			—			288.6
Income taxes	—		(0.2		)	36.7		(16.9		)	—			19.6
Total current liabilities	38.5		1.5			1,115.8		51.2			(169.8		)	1,037.2
Non-current liabilities:
Long-term debt	—		395.2			293.0		—			—			688.2
Intra-entity payables, net	—		—			3,259.0		—			(3,259.0		)	—
Other liabilities	—		—			233.0		6.6			—			239.6
Deferred revenue	—		—			668.9		—			—			668.9
Deferred tax liabilities	—		—			76.7		15.6			—			92.3
Total liabilities	38.5		396.7			5,646.4		73.4			(3,428.8		)	2,726.2
Series A redeemable convertible preferred shares	613.6		—			—		—			—			613.6
Total shareholders’ equity	2,499.8		6.3			759.1		4,154.4			(4,919.8		)	2,499.8
Total liabilities, redeemable convertible preferred shares and shareholders’ equity	$	3,151.9	$	403.0		$	6,405.5	$	4,227.8		$	(8,348.6	)	$	5,839.6

Condensed Consolidating Balance Sheet

January 28, 2017

(in millions)	Signet Jewelers Limited		Signet UK Finance plc			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	1.7	$	0.1		$	70.3	$	26.6		$	—		$	98.7
Accounts receivable, net	—		—			1,858.0		—			—			1,858.0
Intra-entity receivables, net	12.7		—			145.1		—			(157.8		)	—
Other receivables	—		—			71.1		24.8			—			95.9
Other current assets	—		—			131.4		4.9			—			136.3
Income taxes	—		—			4.4		—			—			4.4
Inventories	—		—			2,371.8		77.5			—			2,449.3
Total current assets	14.4		0.1			4,652.1		133.8			(157.8		)	4,642.6
Non-current assets:
Property, plant and equipment, net	—		—			818.5		4.4			—			822.9
Goodwill	—		—			514.0		3.6			—			517.6
Intangible assets, net	—		—			417.0		—			—			417.0
Investment in subsidiaries	3,117.6		—			721.6		590.9			(4,430.1		)	—
Intra-entity receivables, net	—		402.9			—		3,647.1			(4,050.0		)	—
Other assets	—		—			134.8		30.3			—			165.1
Deferred tax assets	—		—			0.6		0.1			—			0.7
Retirement benefit asset	—		—			31.9		—			—			31.9
Total assets	$	3,132.0	$	403.0		$	7,290.5	$	4,410.2		$	(8,637.9	)	$	6,597.8
Liabilities and Shareholders’ equity
Current liabilities:
Loans and overdrafts	$	—	$	(0.7	)	$	91.8	$	—		$	—		$	91.1
Accounts payable	—		—			248.2		7.5			—			255.7
Intra-entity payables, net	—		—			—		157.8			(157.8		)	—
Accrued expenses and other current liabilities	29.9		2.5			429.2		16.6			—			478.2
Deferred revenue	—		—			275.5		1.4			—			276.9
Income taxes	—		(0.2		)	115.5		(13.5		)	—			101.8
Total current liabilities	29.9		1.6			1,160.2		169.8			(157.8		)	1,203.7
Non-current liabilities:
Long-term debt	—		394.3			323.6		600.0			—			1,317.9
Intra-entity payables, net	—		—			4,050.0		—			(4,050.0		)	—
Other liabilities	—		—			208.7		5.0			—			213.7
Deferred revenue	—		—			659.0		—			—			659.0
Deferred tax liabilities	—		—			101.4		—			—			101.4
Total liabilities	29.9		395.9			6,502.9		774.8			(4,207.8		)	3,495.7
Series A redeemable convertible preferred shares	611.9		—			—		—			—			611.9
Total shareholders’ equity	2,490.2		7.1			787.6		3,635.4			(4,430.1		)	2,490.2
Total liabilities, redeemable convertible preferred shares and shareholders’ equity	$	3,132.0	$	403.0		$	7,290.5	$	4,410.2		$	(8,637.9	)	$	6,597.8

Condensed Cash Flow Statement

Condensed Consolidating Statement of Cash Flows

For the 53 week period endedFebruary 3, 2018

(in millions)	Signet Jewelers Limited			Signet UK Finance plc			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	767.8		$	(0.1	)	$	1,856.7		$	586.0		$	(1,269.9	)	$	1,940.5
Investing activities
Purchase of property, plant and equipment	—			—			(236.3		)	(1.1		)	—			(237.4		)
Investment in subsidiaries	(219.9		)	—			(25.0		)	—			244.9			—
Purchase of available-for-sale securities	—			—			—			(2.4		)	—			(2.4		)
Proceeds from available-for-sale securities	—			—			—			2.2			—			2.2
Acquisition of R2Net, net of cash acquired	—			—			(331.8		)	—			—			(331.8		)
Net cash (used in) provided by investing activities	(219.9		)	—			(593.1		)	(1.3		)	244.9			(569.4		)
Financing activities
Dividends paid on common shares	(76.5		)	—			—			—			—			(76.5		)
Dividends paid on redeemable convertible preferred shares	(34.7		)	—			—			—			—			(34.7		)
Intra-entity dividends paid	—			—			(800.0		)	(469.9		)	1,269.9			—
Repurchase of common shares	(460.0		)	—			—			—			—			(460.0		)
Proceeds from issuance of common shares	0.3			—			219.9			25.0			(244.9		)	0.3
Net settlement of equity based awards	(2.9		)	—			—			—			—			(2.9		)
Proceeds from term loan	—			—			350.0			—			—			350.0
Repayments of term loan	—			—			(372.3		)	—			—			(372.3		)
Proceeds from securitization facility	—			—			—			1,745.9			—			1,745.9
Repayment of securitization facility	—			—			—			(2,345.9		)	—			(2,345.9		)
Proceeds from revolving credit facility	—			—			814.0			—			—			814.0
Repayments of revolving credit facility	—			—			(870.0		)	—			—			(870.0		)
Payment of debt issuance costs	—			—			(1.4		)	—			—			(1.4		)
Proceeds from (repayment of) short-term borrowings	—			—			(0.1		)	—			—			(0.1		)
Intra-entity activity, net	25.9			0.1			(532.2		)	506.2			—			—
Net cash (used in) provided by financing activities	(547.9		)	0.1			(1,192.1		)	(538.7		)	1,025.0			(1,253.6		)
Cash and cash equivalents at beginning of period	1.7			0.1			70.3			26.6			—			98.7
Increase (decrease) in cash and cash equivalents	—			—			71.5			46.0			—			117.5
Effect of exchange rate changes on cash and cash equivalents	—			—			8.7			0.2			—			8.9
Cash and cash equivalents at end of period	$	1.7		$	0.1		$	150.5		$	72.8		$	—		$	225.1

Condensed Consolidating Statement of Cash Flows

For the 52 week period endedJanuary 28, 2017

(in millions)	Signet Jewelers Limited			Signet UK Finance plc			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	1,057.9		$	0.1		$	724.8		$	525.6		$	(1,630.1	)	$	678.3
Investing activities
Purchase of property, plant and equipment	—			—			(277.9		)	(0.1		)	—			(278.0		)
Investment in subsidiaries	(610.0		)	—			—			—			610.0			—
Purchase of available-for-sale securities	—			—			—			(10.4		)	—			(10.4		)
Proceeds from available-for-sale securities	—			—			—			10.0			—			10.0
Net cash (used in) provided by investing activities	(610.0		)	—			(277.9		)	(0.5		)	610.0			(278.4		)
Financing activities
Dividends paid on common shares	(75.6		)	—			—			—			—			(75.6		)
Intra-entity dividends paid	—			—			(730.0		)	(900.1		)	1,630.1			—
Repurchase of common shares	(1,000.0		)	—			—			—			—			(1,000.0		)
Proceeds from issuance of common shares	2.1			—			610.0			—			(610.0		)	2.1
Proceeds from issuance of redeemable convertible preferred shares, net of issuance costs	611.3			—			—			—			—			611.3
Net settlement of equity based awards	(4.9		)	—			—			—			—			(4.9		)
Excess tax benefit from exercise of share awards	—			—			2.4			—			—			2.4
Repayments of term loan	—			—			(16.4		)	—			—			(16.4		)
Proceeds from securitization facility	—			—			—			2,404.1			—			2,404.1
Repayment of securitization facility	—			—			—			(2,404.1		)	—			(2,404.1		)
Proceeds from revolving credit facility	—			—			1,270.0			—			—			1,270.0
Repayments of revolving credit facility	—			—			(1,214.0		)	—			—			(1,214.0		)
Payment of debt issuance costs	—			—			(2.1		)	(0.6		)	—			(2.7		)
Principal payments under capital lease obligations	—			—			(0.2		)	—			—			(0.2		)
Proceeds from (repayment of) short-term borrowings	—			—			(10.2		)	—			—			(10.2		)
Intra-entity activity, net	19.0			(0.1		)	(386.6		)	367.7			—			—
Net cash (used in) provided by financing activities	(448.1		)	(0.1		)	(477.1		)	(533.0		)	1,020.1			(438.2		)
Cash and cash equivalents at beginning of period	1.9			0.1			102.0			33.7			—			137.7
Increase (decrease) in cash and cash equivalents	(0.2		)	—			(30.2		)	(7.9		)	—			(38.3		)
Effect of exchange rate changes on cash and cash equivalents	—			—			(1.5		)	0.8			—			(0.7		)
Cash and cash equivalents at end of period	$	1.7		$	0.1		$	70.3		$	26.6		$	—		$	98.7

Condensed Consolidating Statement of Cash Flows

For the 52 week period endedJanuary 30, 2016

(in millions)	Signet Jewelers Limited			Signet UK Finance plc			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	98.6		$	(0.1	)	$	325.7		$	215.0		$	(195.9	)	$	443.3
Investing activities
Purchase of property, plant and equipment	—			—			(225.9		)	(0.6		)	—			(226.5		)
Investment in subsidiaries	—			—			(0.3		)	—			0.3			—
Purchase of available-for-sale securities	—			—			—			(6.2		)	—			(6.2		)
Proceeds from available-for-sale securities	—			—			—			4.0			—			4.0
Net cash (used in) provided by investing activities	—			—			(226.2		)	(2.8		)	0.3			(228.7		)
Financing activities
Dividends paid on common shares	(67.1		)	—			—			—			—			(67.1		)
Intra-entity dividends paid	—			—			(149.3		)	(46.6		)	195.9			—
Repurchase of common shares	(130.0		)	—			—			—			—			(130.0		)
Proceeds from issuance of common shares	5.0			0.3			—			—			(0.3		)	5.0
Net settlement of equity based awards	(8.3		)	—			—			—			—			(8.3		)
Excess tax benefit from exercise of share awards	—			—			6.9			—			—			6.9
Repayments of term loan	—			—			(25.0		)	—			—			(25.0		)
Proceeds from securitization facility	—			—			—			2,303.9			—			2,303.9
Repayment of securitization facility	—			—			—			(2,303.9		)	—			(2,303.9		)
Proceeds from revolving credit facility	—			—			316.0			—			—			316.0
Repayments of revolving credit facility	—			—			(316.0		)	—			—			(316.0		)
Principal payments under capital lease obligations	—			—			(1.0		)	—			—			(1.0		)
Proceeds from (repayment of) short-term borrowings	—			—			(47.1		)	—			—			(47.1		)
Intra-entity activity, net	101.6			(0.2		)	54.9			(156.3		)	—			—
Net cash (used in) provided by financing activities	(98.8		)	0.1			(160.6		)	(202.9		)	195.6			(266.6		)
Cash and cash equivalents at beginning of period	2.1			0.1			166.5			24.9			—			193.6
Increase (decrease) in cash and cash equivalents	(0.2		)	—			(61.1		)	9.3			—			(52.0		)
Effect of exchange rate changes on cash and cash equivalents	—			—			(3.4		)	(0.5		)	—			(3.9		)
Cash and cash equivalents at end of period	$	1.9		$	0.1		$	102.0		$	33.7		$	—		$	137.7

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Quarterly Financial Information - Unaudited (Tables)

12 Months Ended

Feb. 03, 2018

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Information

	Fiscal 2018 Quarters ended
(in millions, except per share amounts)	April 29, 2017		July 29, 2017		October 28, 2017			February 3, 2018
Sales	$	1,403.4	$	1,399.6	$	1,156.9		$	2,293.1
Gross margin	491.2		457.9		321.1			919.8
Net income (loss) attributable to common shareholders	70.3		85.2		(12.1		)	343.0
Earnings (loss) per common share:
Basic	$	1.03	$	1.34	$	(0.20	)	$	5.70
Diluted	$	1.03	$	1.33	$	(0.20	)	$	5.24

	Fiscal 2017 Quarters ended
(in millions, except per share amounts)	April 30, 2016		July 30, 2016		October 29, 2016		January 28, 2017
Sales	$	1,578.9	$	1,373.4	$	1,186.2	$	2,269.9
Gross margin	600.4		464.9		350.0		945.5
Net income (loss) attributable to common shareholders	146.8		81.9		14.8		287.8
Earnings (loss) per common share:
Basic	$	1.87	$	1.06	$	0.20	$	4.17
Diluted	$	1.87	$	1.06	$	0.20	$	3.92

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Organization and summary of significant accoutning policies - Narrative (Details) $ in Millions		3 Months Ended						12 Months Ended
	Oct. 05, 2016 USD ($) shares	Feb. 03, 2018	Oct. 28, 2017	Jul. 29, 2017	Apr. 29, 2017	Jan. 28, 2017	Jan. 30, 2016	Feb. 03, 2018 USD ($) Segment	Jan. 28, 2017 USD ($)	Jan. 30, 2016 USD ($)
Organization and critical accounting policies [Abstract]
Number of reportable segments | Segment								5
Percent of annual sales		40.00%	20.00%	20.00%	20.00%
Advertising and promotional costs [Abstract]
Advertising expense								$ 360.5	$ 380.6	$ 384.2
In-house customer finance programs [Abstract]
Interest-free financing period								1 year
Accrued interest suspension period								90 days
Accounts Receivable [Abstract]
Loss allowance, maturity period								90 days
Percentage allowance on losses								100.00%
Minimum
Organization and critical accounting policies [Abstract]
Operating income expected in fourth quarter								45.00%
Property, Plant and Equipment [Abstract]
Period over which amortization is charged for capitalized payroll for internal use computer projects								3 years
Maximum
Organization and critical accounting policies [Abstract]
Operating income expected in fourth quarter								55.00%
Property, Plant and Equipment [Abstract]
Period over which amortization is charged for capitalized payroll for internal use computer projects								5 years
Sterling Jewelers | Minimum
Organization and critical accounting policies [Abstract]
Operating income expected in fourth quarter								40.00%
Sterling Jewelers | Maximum
Organization and critical accounting policies [Abstract]
Operating income expected in fourth quarter								45.00%
Theft Protection | Zale
Revenue Recognition [Abstract]
Product warranty								2 years
Lifetime Warranty | Sterling Jewelers
Revenue Recognition [Abstract]
Deferred revenue recognition period of extended service plan sales						2 years		17 years
Revenue recognized percentage In relation to costs expected to be incurred within first two years						57.00%	57.00%	57.00%	42.00%	42.00%
Lifetime Warranty | Zale
Revenue Recognition [Abstract]
Revenue recognized percentage In relation to costs expected to be incurred within first two years								69.00%	69.00%	69.00%
Product warranty								10 years
Watch Warranty | Zale
Revenue Recognition [Abstract]
Product warranty								2 years
Breakage Warranty | Zale
Revenue Recognition [Abstract]
Product warranty								1 year
Jewelry Replacement Plan | Sterling Jewelers
Revenue Recognition [Abstract]
Deferred revenue recognition period of extended service plan sales								3 years
Series A Redeemable Convertible Preferred Stock
Temporary Equity [Abstract]
Redeemable convertible preferred stock, shares issued | shares	625,000
Preferred stock, purchase price	$ 625.0

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Organization and summary of significant accoutning policies - Compensation and benefits (Details) - Selling, general and administrative expenses - USD ($) $ in Millions	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Wages and salaries	$ 1,140.3	$ 1,183.2	$ 1,222.8
Payroll taxes	93.8	96.5	101.1
Employee benefit plans	13.0	19.3	17.5
Share-based compensation	16.1	8.0	16.4
Total compensation and benefits	$ 1,263.2	$ 1,307.0	$ 1,357.8

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Organization and summary of significant accoutning policies - Cash and Equivalents (Details) - USD ($) $ in Millions	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016	Jan. 31, 2015
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	$ 225.1	$ 98.7	$ 137.7	$ 193.6
Cash and cash equivalents held in money markets and other accounts
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	182.6	65.6
Cash equivalents from third-party credit card issuers
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	40.5	31.1
Cash on hand
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	$ 2.0	$ 2.0

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Organization and summary of significant accoutning policies - Property Plant and Equipment (Details)	12 Months Ended
	Feb. 03, 2018
Minimum | Buildings
Property, Plant and Equipment [Line Items]
Useful life	30 years
Minimum | Furniture and fixtures
Property, Plant and Equipment [Line Items]
Useful life	3 years
Minimum | Equipment, including software
Property, Plant and Equipment [Line Items]
Useful life	3 years
Maximum | Buildings
Property, Plant and Equipment [Line Items]
Useful life	40 years
Maximum | Leasehold Improvements
Property, Plant and Equipment [Line Items]
Useful life	10 years
Maximum | Furniture and fixtures
Property, Plant and Equipment [Line Items]
Useful life	10 years
Maximum | Equipment, including software
Property, Plant and Equipment [Line Items]
Useful life	5 years

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Acquisitions - Additional Information (Detail) - R2Net Inc. - USD ($) $ in Millions		12 Months Ended
	Sep. 12, 2017	Feb. 03, 2018
Business Acquisition [Line Items]
Cash consideration paid to Zale Corporation shareholders ($21 per share)	$ 331.7
Cash and cash equivalents	47.3
Acquisition related costs		$ 8.6
Bridge Loan
Business Acquisition [Line Items]
Total consideration transferred	$ 350.0

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Acquisitions - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions	Feb. 03, 2018	Sep. 12, 2017	Jan. 28, 2017	Jan. 30, 2016
Intangible Assets:
Goodwill	$ 821.7		$ 517.6	$ 515.5
R2Net Inc.
Business Acquisition [Line Items]
Cash and cash equivalents		$ 47.3
Inventories		12.1
Other current assets		9.7
Property, plant and equipment		3.5
Intangible Assets:
Trade names		70.6
Current liabilities		(42.4)
Deferred tax liabilities		(23.5)
Fair value of net assets acquired		77.3
Goodwill		301.7
Total consideration transferred		$ 379.0

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Segment Information - Additional Information (Details)	12 Months Ended
	Feb. 03, 2018 Segment state province
Segment Reporting [Abstract]
Number of reportable segments | Segment	5
Number of states in which entity operates | state	50
Number of provinces in which entity operates | province	9

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Segment Information - Summary of Activity by Segment (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Feb. 03, 2018	Oct. 28, 2017	Jul. 29, 2017	Apr. 29, 2017	Jan. 28, 2017	Oct. 29, 2016	Jul. 30, 2016	Apr. 30, 2016	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Segment Reporting Information [Line Items]
Sales	$ 2,293.1	$ 1,156.9	$ 1,399.6	$ 1,403.4	$ 2,269.9	$ 1,186.2	$ 1,373.4	$ 1,578.9	$ 6,253.0	$ 6,408.4	$ 6,550.2
Operating income (loss)									579.9	763.2	703.7
Depreciation and amortization									203.4	188.8	175.3
Capital additions									237.4	278.0	226.5
Credit transaction, net									(30.9)	0.0	0.0
Total assets	5,839.6				6,597.8				5,839.6	6,597.8
Total long-lived assets	2,181.1				1,757.5				2,181.1	1,757.5
Total liabilities	2,726.2				3,495.7				2,726.2	3,495.7
Sterling Jewelers
Segment Reporting Information [Line Items]
Sales									3,820.5	3,930.4	3,988.7
Operating income (loss)									576.0	715.8	718.6
Depreciation and amortization									121.8	112.7	106.2
Capital additions									134.8	154.5	141.6
Total assets	3,279.4				4,015.4				3,279.4	4,015.4
Total long-lived assets	956.3				567.3				956.3	567.3
Total liabilities	1,482.4				2,061.4				1,482.4	2,061.4
Zale Jewelry
Segment Reporting Information [Line Items]
Sales									1,516.2	1,549.7	1,568.2
Operating income (loss)									66.7	62.2	44.3
Depreciation and amortization									55.3	49.1	44.8
Capital additions									76.3	85.0	47.7
Total assets	1,879.4				1,940.7				1,879.4	1,940.7
Total long-lived assets	1,075.6				1,050.1				1,075.6	1,050.1
Total liabilities	439.9				524.3				439.9	524.3
Zale Jewelry | Canada
Segment Reporting Information [Line Items]
Sales									235.1	234.6	248.7
Piercing Pagoda
Segment Reporting Information [Line Items]
Sales									278.5	263.1	243.2
Operating income (loss)									13.4	11.2	7.8
Depreciation and amortization									6.4	4.6	3.3
Capital additions									8.6	12.7	10.2
Total assets	150.2				141.6				150.2	141.6
Total long-lived assets	63.6				61.4				63.6	61.4
Total liabilities	28.8				28.2				28.8	28.2
UK Jewelry
Segment Reporting Information [Line Items]
Sales									616.7	647.1	737.6
Operating income (loss)									33.1	45.6	61.5
Depreciation and amortization									19.1	21.6	20.1
Capital additions									17.6	25.7	26.4
Total assets	420.3				372.6				420.3	372.6
Total long-lived assets	78.3				70.7				78.3	70.7
Total liabilities	98.9				110.6				98.9	110.6
Other
Segment Reporting Information [Line Items]
Sales									21.1	18.1	12.5
Operating income (loss)									(109.3)	(71.6)	(128.5)
Depreciation and amortization									0.8	0.8	0.9
Capital additions									0.1	0.1	0.6
Acquisition integration and severance related costs										28.4	(78.9)
Total assets	110.3				127.5				110.3	127.5
Total long-lived assets	7.3				8.0				7.3	8.0
Total liabilities	$ 676.2				$ 771.2				676.2	771.2
Diamonds and diamond jewelry
Segment Reporting Information [Line Items]
Sales									3,742.8	3,853.7	3,918.1
Gold, silver jewelry, other products and services
Segment Reporting Information [Line Items]
Sales									2,067.2	2,090.0	2,116.4
Watches
Segment Reporting Information [Line Items]
Sales									443.0	464.7	515.7
Consumer Portfolio Segment
Segment Reporting Information [Line Items]
Credit transaction, net									20.7	$ 0.0	$ 0.0
Consumer Portfolio Segment | Sterling Jewelers
Segment Reporting Information [Line Items]
Credit transaction, net									10.2
Consumer Portfolio Segment | Other
Segment Reporting Information [Line Items]
Transaction costs									(29.6)
R2Net Inc.
Segment Reporting Information [Line Items]
Acquisition related costs									8.6
Chief Executive Officer | Other
Segment Reporting Information [Line Items]
Transition costs related to officers									$ 3.4

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Redeemable Preferred Shares - Narrative (Details) - Series A Redeemable Convertible Preferred Stock - USD ($) $ / shares in Units, $ in Millions			12 Months Ended
	Oct. 05, 2018	Oct. 05, 2016	Feb. 03, 2018	Jan. 28, 2017
Temporary Equity [Line Items]
Redeemable convertible preferred stock, shares issued		625,000
Preferred stock, purchase price		$ 625.0
Shares issued, price per share		$ 1,000
Payments of stock issuance costs		$ 13.7
Accumulated accretion of dividends			$ 2.3	$ 0.6
Preferred stock, dividend rate, percentage			5.00%
Percentage of cash equal to the stated value			101.00%
Maximum
Temporary Equity [Line Items]
Preferred dividends, percentage of average quarterly cash dividends (not more than)			130.00%
Scenario, Forecast
Temporary Equity [Line Items]
Percentage exceeding applicable conversion price	175.00%
Threshold period at which shares can be converted	20 days

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Redeemable Preferred Shares - Redeemable Preferred Shares (Details) - Series A Redeemable Convertible Preferred Stock $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Feb. 03, 2018 USD ($) $ / shares shares	Jan. 28, 2017 USD ($) $ / shares shares
Temporary Equity [Line Items]
Conversion rate	10.9409	10.6529
Conversion price | $ / shares	$ 91.4002	$ 93.8712
Potential impact of preferred shares if-converted to common shares | shares	6.8	6.7
Liquidation preference | $	$ 632.8	$ 636.3

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Credit transaction, net (Details) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Oct. 28, 2017	Feb. 02, 2019	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Financing Receivable, Allowance for Credit Losses [Line Items]
Reversal of allowance on receivables sold			$ (30.9)	$ 0.0	$ 0.0
Credit transaction, net			$ 1.3	0.0	0.0
Initial credit term (years)			7 years
Credit renewal term (years)			2 years
Consumer Portfolio Segment
Financing Receivable, Allowance for Credit Losses [Line Items]
Reversal of allowance on receivables sold			$ 20.7	$ 0.0	$ 0.0
Sterling Jewelers, Inc. | Consumer Portfolio Segment
Financing Receivable, Allowance for Credit Losses [Line Items]
Net proceeds	$ 952.5
Beneficial interest asset	$ 10.2
Securitization Facility
Financing Receivable, Allowance for Credit Losses [Line Items]
Credit transaction, net			(29.6)
Repayments of secured debt			$ 600.0
Genesis Financial Solution
Financing Receivable, Allowance for Credit Losses [Line Items]
Servicing agreement, term (years)	5 years
Scenario, Forecast
Financing Receivable, Allowance for Credit Losses [Line Items]
Gain (loss) on held-for-investment finance receivables transferred to held-for-sale		$ 140.0

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Common Shares, Treasury Shares, Reserves and Dividends - Additional Information (Detail) - USD ($)			1 Months Ended	3 Months Ended												12 Months Ended
	Mar. 01, 2018	Oct. 05, 2016	Dec. 31, 2016	Feb. 03, 2018	Oct. 28, 2017	Jul. 29, 2017	Apr. 29, 2017	Jan. 28, 2017	Oct. 29, 2016	Jul. 30, 2016	Apr. 30, 2016	Jan. 30, 2016	Oct. 31, 2015	Aug. 01, 2015	May 02, 2015	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016	Jun. 30, 2017	Aug. 31, 2016	Feb. 29, 2016
Class of Stock [Line Items]
Common shares, par value (usd per share)				$ 0.18				$ 0.18								$ 0.18	$ 0.18
Proceeds from issuance of common shares																$ 300,000	$ 2,100,000	$ 5,000,000
Shares repurchased (shares)																8,100,000	11,200,000	1,000,000
Amount repurchased																$ 460,000,000	$ 1,000,000,000	$ 130,000,000
Average repurchase price per share (usd per share)																$ 56.91	$ 89.10	$ 127.63
Treasury stock held (shares)				26,700,000				18,900,000								26,700,000	18,900,000
Treasury stock reissued																300,000	100,000
Dividends declared per common share (usd per share)				$ 0.31	$ 0.31	$ 0.31	$ 0.31	$ 0.26	$ 0.26	$ 0.26	$ 0.26	$ 0.22	$ 0.22	$ 0.22	$ 0.22	$ 1.24	$ 1.04	$ 0.88
Dividends on preferred shares				$ 18,800,000				$ 17,700,000								$ 18,800,000	$ 17,700,000
Cumulative undeclared dividends																0
Dividends on redeemable convertible preferred shares																32,900,000	$ 11,900,000
Subsequent Event
Class of Stock [Line Items]
Dividends declared date	Mar. 14, 2018
Dividends declared per common share (usd per share)	$ 0.37
Dividends payable date	Jun. 01, 2018
Dividends payable, date of record	May 04, 2018
2016 Program
Class of Stock [Line Items]
Amount authorized				1,375,000,000												$ 1,375,000,000				$ 625,000,000	$ 750,000,000
Shares repurchased (shares)																8,082,630	10,004,333
Amount repurchased																$ 460,000,000	$ 864,400,000
Average repurchase price per share (usd per share)																$ 56.91	$ 86.40
Accelerated Share Repurchase Program
Class of Stock [Line Items]
Accelerated share repurchases, payment		$ 525,000,000
Shares repurchased (shares)		4,700,000	1,300,000													6,000,000
Amount repurchased		$ 367,500,000
Average repurchase price per share (usd per share)																$ 87.01
2017 Program
Class of Stock [Line Items]
Amount authorized				$ 650,600,000												$ 650,600,000			$ 600,000,000.0
Series A Redeemable Convertible Preferred Stock
Class of Stock [Line Items]
Dividends on redeemable convertible preferred shares																$ 1,700,000	$ 600,000

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Common Shares, Treasury Shares, Reserves and Dividends - Share Repurchase (Details) - USD ($)	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016	Aug. 31, 2016	Feb. 29, 2016
Class of Stock [Line Items]
Shares repurchased (shares)	8,100,000	11,200,000	1,000,000
Amount repurchased	$ 460,000,000	$ 1,000,000,000	$ 130,000,000
Average repurchase price per share (usd per share)	$ 56.91	$ 89.10	$ 127.63
2016 Program
Class of Stock [Line Items]
Amount authorized	$ 1,375,000,000			$ 625,000,000	$ 750,000,000
Shares repurchased (shares)	8,082,630	10,004,333
Amount repurchased	$ 460,000,000	$ 864,400,000
Average repurchase price per share (usd per share)	$ 56.91	$ 86.40
2013 Program
Class of Stock [Line Items]
Amount authorized	$ 350,000,000.0
Shares repurchased (shares)		1,218,621	1,018,568
Amount repurchased		$ 135,600,000	$ 130,000,000
Average repurchase price per share (usd per share)		$ 111.26	$ 127.63
Remaining authorized repurchase amount	$ 50,600,000

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Common Shares, Treasury Shares, Reserves and Dividends - Dividends (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended												9 Months Ended	12 Months Ended
	Feb. 03, 2018	Oct. 28, 2017	Jul. 29, 2017	Apr. 29, 2017	Jan. 28, 2017	Oct. 29, 2016	Jul. 30, 2016	Apr. 30, 2016	Jan. 30, 2016	Oct. 31, 2015	Aug. 01, 2015	May 02, 2015	Oct. 29, 2016	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Class of Stock [Line Items]
Dividends declared per common share (usd per share)	$ 0.31	$ 0.31	$ 0.31	$ 0.31	$ 0.26	$ 0.26	$ 0.26	$ 0.26	$ 0.22	$ 0.22	$ 0.22	$ 0.22		$ 1.24	$ 1.04	$ 0.88
Cash dividend per share (usd per share)														$ 1.24	$ 1.04	$ 0.88
Total dividends	$ 18.8	$ 18.7	$ 18.7	$ 21.3	$ 17.7	$ 18.1	$ 19.7	$ 20.4	$ 17.5	$ 17.5	$ 17.6	$ 17.6		$ 77.5	$ 75.9	$ 70.2
Dividends on preferred shares	18.8				17.7									18.8	17.7
Series A Redeemable Convertible Preferred Stock
Class of Stock [Line Items]
Dividends, preferred stock, cash	$ 7.8	$ 7.8	$ 7.8	$ 7.8	$ 11.3	$ 0.0	$ 0.0	$ 0.0					$ 11.3	31.2
Accrued Expenses
Class of Stock [Line Items]
Dividends, preferred stock, cash														$ 7.8	$ 11.3

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Earnings Per Common Share - Schedule of Earnings per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended								12 Months Ended
	Feb. 03, 2018	Oct. 28, 2017	Jul. 29, 2017	Apr. 29, 2017	Jan. 28, 2017	Oct. 29, 2016	Jul. 30, 2016	Apr. 30, 2016	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Equity [Abstract]
Net income attributable to common shareholders									$ 486.4	$ 531.3	$ 467.9
Add: Dividends on preferred shares									(32.9)	(11.9)	0.0
Net income	$ 343.0	$ (12.1)	$ 85.2	$ 70.3	$ 287.8	$ 14.8	$ 81.9	$ 146.8	$ 519.3	$ 543.2	$ 467.9
Basic weighted average number of common shares outstanding									63.0	74.5	79.5
Dilutive effect of share awards (in shares)									0.1	0.1	0.2
Dilutive effect of preferred shares (in shares)									6.7	2.1	0.0
Diluted weighted average number of common shares outstanding									69.8	76.7	79.7
Earnings per share - basic (usd per share)	$ 5.70	$ (0.20)	$ 1.34	$ 1.03	$ 4.17	$ 0.20	$ 1.06	$ 1.87	$ 7.72	$ 7.13	$ 5.89
Earnings per share - diluted (usd per share)	$ 5.24	$ (0.20)	$ 1.33	$ 1.03	$ 3.92	$ 0.20	$ 1.06	$ 1.87	$ 7.44	$ 7.08	$ 5.87

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Earnings Per Common Share - Schedule of Antidilutive Securities Excluded From the Calculation of Earnings Per Share (Details) - shares shares in Millions	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Performance Shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from the calculation of earnings per share	0.4	0.1	0.1

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Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated OCI by Component and Reclassifications Out of Accumulated OCI (Detail) - USD ($) $ in Millions	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance	$ 2,490.2	$ 3,060.7	$ 2,810.4
OCI before reclassifications	52.5	(32.7)	(42.0)
Amounts reclassified from AOCI to net income	(5.4)	(0.9)	4.5
Total other comprehensive (loss) income	47.1	(33.6)	(37.5)
Balance	2,499.8	2,490.2	3,060.7
Foreign currency translation
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance	(263.4)	(237.8)	(197.6)
OCI before reclassifications	50.9	(25.6)	(40.2)
Amounts reclassified from AOCI to net income	0.0	0.0	0.0
Total other comprehensive (loss) income	50.9	(25.6)	(40.2)
Balance	(212.5)	(263.4)	(237.8)
Losses on available-for-sale securities, net
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance	(0.4)	(0.4)	0.0
OCI before reclassifications	0.3	0.0	(0.4)
Amounts reclassified from AOCI to net income	0.0	0.0	0.0
Total other comprehensive (loss) income	0.3	0.0	(0.4)
Balance	(0.1)	(0.4)	(0.4)
Gains (losses) on cash flow hedges
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance	2.4	(3.9)	4.4
OCI before reclassifications	1.8	6.9	(11.8)
Amounts reclassified from AOCI to net income	(3.5)	(0.6)	3.5
Total other comprehensive (loss) income	(1.7)	6.3	(8.3)
Balance	0.7	2.4	(3.9)
Actuarial gains (losses)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance	(55.5)	(43.1)	(56.7)
OCI before reclassifications	0.0	(13.6)	10.9
Amounts reclassified from AOCI to net income	4.4	1.2	2.7
Total other comprehensive (loss) income	4.4	(12.4)	13.6
Balance	(51.1)	(55.5)	(43.1)
Prior service credits (costs)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance	9.2	11.1	13.3
OCI before reclassifications	(0.5)	(0.4)	(0.5)
Amounts reclassified from AOCI to net income	(6.3)	(1.5)	(1.7)
Total other comprehensive (loss) income	(6.8)	(1.9)	(2.2)
Balance	2.4	9.2	11.1
Accumulated other comprehensive (loss) income
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance	(307.7)	(274.1)	(236.6)
Balance	$ (260.6)	$ (307.7)	$ (274.1)

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Accumulated Other Comprehensive Income (Loss) - Reclassifications out of AOCI (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Feb. 03, 2018	Oct. 28, 2017	Jul. 29, 2017	Apr. 29, 2017	Jan. 28, 2017	Oct. 29, 2016	Jul. 30, 2016	Apr. 30, 2016	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cost of sales reclassification adjustment									$ 4,063.0	$ 4,047.6	$ 4,109.8
Interest expense reclassification adjustment									52.7	49.4	45.9
Income before income taxes									(527.2)	(713.8)	(657.8)
Income taxes									7.9	170.6	189.9
Net income	$ (343.0)	$ 12.1	$ (85.2)	$ (70.3)	$ (287.8)	$ (14.8)	$ (81.9)	$ (146.8)	(519.3)	(543.2)	(467.9)
Net curtailment gain and settlement loss									(3.7)	0.0	0.0
Amounts reclassified from AOCI									(5.4)	(0.9)	4.5
Actuarial gains (losses)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassification adjustment from AOCI, pension and other postretirement, before tax									2.8	1.5	3.4
Prior service credits (costs)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassification adjustment from AOCI, pension and other postretirement, before tax									(1.4)	(1.9)	(2.2)
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassification adjustment from AOCI, pension and other postretirement, before tax									(2.3)	(0.4)	1.2
Reclassification adjustment from AOCI, pension and other postretirement benefit plans, tax									0.4	0.1	(0.2)
Amounts reclassified from AOCI									(1.9)	(0.3)	1.0
Reclassification out of AOCI | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Income before income taxes									(4.6)	(0.7)	4.9
Income taxes									1.1	0.1	(1.4)
Net income									(3.5)	(0.6)	3.5
Reclassification out of AOCI | Foreign currency contracts | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cost of sales reclassification adjustment									(3.2)	(2.7)	(0.4)
Reclassification out of AOCI | Interest rate swaps | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Interest expense reclassification adjustment									0.3	2.2	2.7
Reclassification out of AOCI | Commodity contracts | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cost of sales reclassification adjustment									$ (1.7)	$ (0.2)	$ 2.6

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Income Taxes - Summary of Income and Income Taxes (Details) - USD ($) $ in Millions	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Income before income taxes:
– US	$ 202.2	$ 424.0	$ 426.1
– Foreign	325.0	289.8	231.7
Income before income taxes	527.2	713.8	657.8
Current taxation:
– US	35.9	137.6	161.7
– Foreign	6.1	3.9	3.5
Deferred taxation:
– US	(34.8)	28.1	22.3
– Foreign	0.7	1.0	2.4
Total income taxes	$ 7.9	$ 170.6	$ 189.9

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Income Taxes - Additional Information (Detail) - USD ($) $ in Millions		12 Months Ended
	Nov. 04, 2018	Nov. 03, 2018	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016	Jan. 31, 2015
Operating Loss Carryforwards [Line Items]
Statutory tax rate			35.00%	35.00%	35.00%
Net impact on remeasurement of US deferred tax assets and liabilities			$ 64.7
Foreign capital loss carry forward			12.0	$ 11.3
Change in valuation allowance			5.5	0.4	$ (0.5)
Unrecognized tax benefits			12.0	$ 12.0	$ 11.4	$ 11.4
Increase resulting from settlements with taxing authorities			13.1
Accrued interest related to unrecognized tax benefits			2.7
Accrued penalties			0.7
Domestic Tax Authority
Operating Loss Carryforwards [Line Items]
Net operating loss carry forwards			31.7
Foreign Tax Authority
Operating Loss Carryforwards [Line Items]
Net operating loss carry forwards			13.7
Foreign net operating loss carry forwards			$ 11.5
Bermuda
Operating Loss Carryforwards [Line Items]
Statutory tax rate			0.00%
Scenario, Forecast
Operating Loss Carryforwards [Line Items]
Statutory tax rate	21.00%	23.40%

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Income Taxes - Schedule of Income Tax Provision (Details) $ in Millions	12 Months Ended
	Feb. 03, 2018 USD ($)
Income Tax Disclosure [Abstract]
Net impact on remeasurement of US deferred tax assets and liabilities	$ 64.7
Net impact of reduce US tax rate on income from October 29, 2017 thru February 3, 2018	21.5
Net benefit of the TCJ Act	$ 86.2

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Income Taxes - Reconciliation of Statutory Tax Rate to Effective Tax Rate (Details)	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Income Tax Disclosure [Abstract]
US federal income tax rates	35.00%	35.00%	35.00%
US state income taxes	1.90%	1.90%	2.70%
Differences between US federal and foreign statutory income tax rates	(1.00%)	(0.20%)	(0.50%)
Expenditures permanently disallowable for tax purposes, net of permanent tax benefits	1.00%	0.40%	0.50%
Disallowable transaction costs	0.40%	0.10%	2.10%
Impact of global reinsurance arrangements	(8.10%)	(5.40%)	(2.40%)
Impact of global financing arrangements	(11.40%)	(8.20%)	(8.70%)
Provisional benefit in current year taxes - the TCJ Act	(4.10%)	(0.00%)	(0.00%)
Provisional remeasurement of deferred taxes - the TCJ Act	(12.30%)	(0.00%)	(0.00%)
Other items	0.10%	0.30%	0.20%
Effective tax rate	1.50%	23.90%	28.90%

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Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions	Feb. 03, 2018	Jan. 28, 2017
Assets
Foreign property, plant and equipment	$ 6.2	$ 5.0
Allowances for doubtful accounts	34.4	60.4
Revenue deferral	147.1	216.0
Derivative instruments	0.0	0.0
Straight-line lease payments	26.5	37.5
Deferred compensation	9.2	16.5
Share-based compensation	4.4	5.7
Other temporary differences	47.1	51.0
Net operating losses and foreign tax credits	56.9	69.2
Value of foreign capital losses	12.0	11.3
Total gross deferred tax assets (liabilities)	343.8	472.6
Valuation allowance	(37.0)	(31.5)
Deferred tax assets (liabilities)	306.8	441.1
(Liabilities)
Intangible assets	(130.9)	(160.1)
US property, plant and equipment	(65.2)	(86.2)
Inventory valuation	(193.7)	(289.4)
Derivative instruments		0.0
Retirement benefit obligations	(7.6)	(6.1)
Deferred tax assets (liabilities)	(397.7)	(541.8)
Total
Intangible assets	(130.9)	(160.1)
Property, plant and equipment		5.0
Inventory valuation	(193.7)	(289.4)
Allowances for doubtful accounts	34.4	60.4
Revenue deferral	147.1	216.0
Derivative instruments	(0.3)	0.0
Straight-line lease payments	26.5	37.5
Deferred compensation	9.2	16.5
Retirement benefit obligations	(7.6)	(6.1)
Share-based compensation	4.4	5.7
Other temporary differences	47.1	51.0
Net operating losses and foreign tax credits	56.9	69.2
Value of foreign capital losses	12.0	11.3
Total gross deferred tax assets (liabilities)	(53.9)	(69.2)
Valuation allowance	(37.0)	(31.5)
Deferred tax assets (liabilities)	90.9	100.7
Non-current assets	1.4	0.7
Non-current liabilities	(92.3)	(101.4)
Domestic Tax Authority
Total
Property, plant and equipment	(65.2)
Foreign Tax Authority
Total
Property, plant and equipment	$ 6.2	$ (86.2)

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Income Taxes - Summary of Activity of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Reconciliation of Unrecognized Tax Benefits
Unrecognized tax benefits, beginning of period	$ 12.0	$ 11.4	$ 11.4
Increases related to current year tax positions	2.3	2.4	2.0
Lapse of statute of limitations	(2.4)	(1.9)	(1.9)
Difference on foreign currency translation	0.1	0.1	(0.1)
Unrecognized tax benefits, end of period	$ 12.0	$ 12.0	$ 11.4

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Other Operating Income, Net - Components of Other Operating Income, Net (Details) - USD ($) $ in Millions	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Other Income and Expenses [Abstract]
Interest income from in-house customer finance programs(1)	$ 258.1	$ 282.5	$ 252.6
Other	2.7	0.1	(1.7)
Other operating income, net	$ 260.8	$ 282.6	$ 250.9

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Accounts Receivable, Net - Portfolio of Accounts Receivable (Details) - USD ($) $ in Millions	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, net	$ 692.5	$ 1,858.0
Consumer Portfolio Segment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, net	649.4	1,813.3	$ 1,725.9
Other accounts receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, net	9.6	11.3
Sterling Jewelers | Consumer Portfolio Segment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, net	649.4	1,813.3
Zale Jewelry | Consumer Portfolio Segment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, net	$ 33.5	$ 33.4

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Accounts Receivable, Net - Additional Information (Detail) - USD ($) $ in Millions	Feb. 03, 2018	Jan. 28, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, net	$ 692.5	$ 1,858.0
Other accounts receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, net	9.6	11.3
UK Jewelry | Other accounts receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, net	$ 9.3	$ 11.0

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Accounts Receivable, Net - Allowance for Credit Losses (Details) - USD ($) $ in Millions	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	$ (138.7)	$ (130.0)
Reversal of allowance on receivables sold	(30.9)	0.0	$ 0.0
Ending balance	(113.5)	(138.7)	(130.0)
Ending receivable balance evaluated for impairment	762.9	1,952.0	1,855.9
Sterling Jewelers customer in-house finance receivables, net	692.5	1,858.0
Consumer Portfolio Segment
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	(138.7)	(130.0)	(113.1)
Charge-offs, net	221.2	203.4	173.6
Recoveries	34.3	35.1	35.3
Provision	(251.0)	(247.2)	(225.8)
Reversal of allowance on receivables sold	20.7	0.0	0.0
Ending balance	(113.5)	(138.7)	(130.0)
Ending receivable balance evaluated for impairment	762.9	1,952.0	1,855.9
Sterling Jewelers customer in-house finance receivables, net	$ 649.4	$ 1,813.3	$ 1,725.9

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Accounts Receivable, Net - Credit Quality Indicator and Age Analysis (Details) - USD ($) $ in Millions	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross	$ 762.9	$ 1,952.0	$ 1,855.9
Valuation allowance	$ (113.5)	$ (138.7)	$ (130.0)
Valuation allowance	14.90%	7.10%	7.00%
0 - 120 days past due | Performing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross	$ 703.4
Valuation allowance	(54.0)
121 or more days past due | Performing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross	59.5
Valuation allowance	$ (59.5)
Current, aged 0 – 30 days | Performing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross		$ 1,538.2	$ 1,473.0
Valuation allowance		(47.2)	(45.4)
Past due, aged 31 – 60 days | Performing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross		282.0	259.6
Valuation allowance		(9.0)	(8.3)
Past due, aged 61 – 90 days | Performing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross		51.6	49.2
Valuation allowance		(2.3)	(2.2)
Past due, aged more than 90 days | Non Performing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross		80.2	74.1
Valuation allowance		$ (80.2)	$ (74.1)

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Inventories - Additional Information (Details) - USD ($) $ in Millions	Feb. 03, 2018	Jan. 28, 2017
Consignment inventory
Inventories
Other inventory	$ 606.4	$ 574.0

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Inventories - Summary of Inventory Components (Details) - USD ($) $ in Millions	Feb. 03, 2018	Jan. 28, 2017
Inventory Disclosure [Abstract]
Raw materials	$ 72.0	$ 60.8
Finished goods	2,208.5	2,388.5
Total inventories	$ 2,280.5	$ 2,449.3

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Inventories - Rollforward of Inventory Reserves (Details) - USD ($) $ in Millions	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of period	$ 43.2	$ 43.2	$ 28.4
Charged to profit	75.8	57.3	87.6
Utilized	(78.4)	(57.3)	(72.8)
Balance at end of period	$ 40.6	$ 43.2	$ 43.2

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Property, Plant and Equipment, Net - Summary of Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions	Feb. 03, 2018	Jan. 28, 2017
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 2,075.5	$ 1,872.3
Accumulated depreciation and amortization	(1,197.6)	(1,049.4)
Property, plant and equipment, net	877.9	822.9
Land and buildings
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	35.9	33.5
Leasehold Improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	689.8	632.4
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	804.2	761.0
Equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	177.0	137.7
Software
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	271.4	211.0
Construction in progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 97.2	$ 96.7

XML

Property, Plant and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense	$ 194.1	$ 175.0	$ 161.4
Impairment of assets	$ 1.0	$ 1.3	$ 0.7

XML

Goodwill and Intangibles - Additional Information (Details) - USD ($)		12 Months Ended
	Sep. 12, 2017	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Finite-Lived Intangible Assets [Line Items]
Acquisitions		$ 301,700,000
Goodwill, impairment loss		0	$ 0
Amortization of intangible assets		9,300,000	13,800,000	$ 13,900,000
Amortization of intangible liabilities		$ 13,000,000	$ 19,700,000	$ 28,700,000
R2Net Inc.
Finite-Lived Intangible Assets [Line Items]
Acquisitions	$ 301,700,000

XML

Goodwill and Intangibles - Summary of Goodwill (Details) - USD ($) $ in Millions	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017
Goodwill [Roll Forward]
Beginning balance	$ 517.6	$ 515.5
Impact of foreign exchange	2.4	2.1
Acquisitions	301.7
Ending balance	821.7	517.6
Sterling Jewelers
Goodwill [Roll Forward]
Beginning balance	23.2	23.2
Impact of foreign exchange	0.0	0.0
Acquisitions	301.7
Ending balance	324.9	23.2
Zale Jewelry
Goodwill [Roll Forward]
Beginning balance	490.8	488.7
Impact of foreign exchange	2.4	2.1
Acquisitions	0.0
Ending balance	493.2	490.8
Piercing Pagoda
Goodwill [Roll Forward]
Beginning balance	0.0	0.0
Impact of foreign exchange	0.0	0.0
Acquisitions	0.0
Ending balance	0.0	0.0
UK Jewelry
Goodwill [Roll Forward]
Beginning balance	0.0	0.0
Impact of foreign exchange	0.0	0.0
Acquisitions	0.0
Ending balance	0.0	0.0
Other
Goodwill [Roll Forward]
Beginning balance	3.6	3.6
Impact of foreign exchange	0.0	0.0
Acquisitions	0.0
Ending balance	$ 3.6	$ 3.6

XML

Goodwill and Intangibles - Composition of Finite-Lived Intangibles (Details) - USD ($) $ in Millions	Feb. 03, 2018	Jan. 28, 2017
Intangible assets, net:
Gross carrying amount	$ 49.8	$ 49.0
Accumulated amortization	(46.7)	(36.8)
Net carrying amount	3.1	12.2
Intangible assets, gross	528.2	453.8
Total intangible assets, net	481.5	417.0
Definite-lived intangible liabilities:
Gross carrying amount	(114.5)	(113.9)
Accumulated amortization	85.2	71.7
Total	(29.3)	(42.2)
Trade names
Intangible assets, net:
Indefinite-lived intangible assets	$ 478.4	$ 404.8

XML

Goodwill and Intangibles - Summary of Future Amortization (Details) - USD ($) $ in Millions	Feb. 03, 2018	Jan. 28, 2017
Intangible assets, net amortization
2019	$ 2.7
2020	0.3
2021	0.1
2022	0.0
2023	0.0
Net carrying amount	3.1	$ 12.2
Intangible liabilities amortization
2019	(7.7)
2020	(5.7)
2021	(5.4)
2022	(5.4)
2023	(5.1)
Total	$ (29.3)

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Other Assets - Components of Other Assets (Detail) - USD ($) $ in Millions	Feb. 03, 2018	Jan. 28, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Deferred ESP selling costs	$ 89.5	$ 86.1
Investments	27.9	27.2
Other assets	53.8	51.8
Total other assets	171.2	165.1
Deferred costs related to the sale of the extended service plan	$ 30.9	$ 29.4

XML

Investments - Summary of Available-for-sale Securities (Details) - USD ($) $ in Millions	Feb. 03, 2018	Jan. 28, 2017
Schedule of Available-for-sale Securities [Line Items]
Cost	$ 28.1	$ 27.9
Unrealized Gain (Loss)	(0.2)	(0.7)
Fair Value	27.9	27.2
US Treasury securities
Schedule of Available-for-sale Securities [Line Items]
Cost	8.3	8.8
Unrealized Gain (Loss)	(0.8)	(0.7)
Fair Value	7.5	8.1
US government agency securities
Schedule of Available-for-sale Securities [Line Items]
Cost	5.3	4.6
Unrealized Gain (Loss)	(0.2)	(0.2)
Fair Value	5.1	4.4
Corporate bonds and notes
Schedule of Available-for-sale Securities [Line Items]
Cost	11.0	11.0
Unrealized Gain (Loss)	(0.2)	(0.1)
Fair Value	10.8	10.9
Corporate equity securities
Schedule of Available-for-sale Securities [Line Items]
Cost	3.5	3.5
Unrealized Gain (Loss)	1.0	0.3
Fair Value	$ 4.5	$ 3.8

XML

Investments - Additional Information (Details) - USD ($) $ in Millions	Feb. 03, 2018	Jan. 28, 2017
Available-for-sale Securities
Schedule of Available-for-sale Securities [Line Items]
Assets held by insurance regulators	$ 6.8	$ 6.6

XML

Investments - Summary of Investments in Debt Securities Outstanding (Details) $ in Millions	Feb. 03, 2018 USD ($)
Cost
Less than one year	$ 2.9
Year two through year five	16.9
Year six through year ten	4.8
Total investment in debt securities	24.6
Fair Value
Less than one year	2.3
Year two through year five	16.4
Year six through year ten	4.7
Total investment in debt securities	$ 23.4

XML

Derivatives - Additional Information (Details) oz in Thousands, $ in Millions	12 Months Ended
	Feb. 03, 2018 USD ($) oz	Jan. 28, 2017 USD ($) oz	Mar. 31, 2015 USD ($)
Derivative [Line Items]
Ounces of gold | oz	6	94
Maximum
Derivative [Line Items]
Remaining settlement period	12 months
Cash Flow Hedging
Derivative [Line Items]
Expected pre-tax derivative losses	$ 0.5
Interest rate swaps
Derivative [Line Items]
Aggregate notional amount			$ 300.0
Foreign currency contracts | Not Designated as Hedging Instrument
Derivative [Line Items]
Aggregate notional amount	112.7	$ 117.8
Foreign currency contracts | Cash Flow Hedging
Derivative [Line Items]
Aggregate notional amount	$ 26.6	$ 37.8
Remaining settlement period	11 months	12 months
Commodity contracts | Cash Flow Hedging
Derivative [Line Items]
Remaining settlement period	12 months	12 months

XML

Derivatives - Fair Value of Presentation of Derivative Assets and Liabilities (Details) - USD ($) $ in Millions	Feb. 03, 2018	Jan. 28, 2017
Derivatives, Fair Value [Line Items]
Fair value of derivative assets	$ 2.2	$ 3.6
Fair value of derivative liabilities	(2.4)	(3.6)
Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Fair value of derivative assets	2.2	1.8
Fair value of derivative liabilities	(1.5)	(3.6)
Foreign currency contracts | Designated as Hedging Instrument | Other current assets
Derivatives, Fair Value [Line Items]
Fair value of derivative assets	0.0	1.4
Foreign currency contracts | Designated as Hedging Instrument | Other current liabilities
Derivatives, Fair Value [Line Items]
Fair value of derivative liabilities	(1.4)	(0.2)
Foreign currency contracts | Not Designated as Hedging Instrument | Other current assets
Derivatives, Fair Value [Line Items]
Fair value of derivative assets	0.0	1.8
Foreign currency contracts | Not Designated as Hedging Instrument | Other current liabilities
Derivatives, Fair Value [Line Items]
Fair value of derivative liabilities	(0.9)	0.0
Commodity contracts | Designated as Hedging Instrument | Other current liabilities
Derivatives, Fair Value [Line Items]
Fair value of derivative liabilities	(0.1)	(3.4)
Interest rate swaps | Designated as Hedging Instrument | Other assets
Derivatives, Fair Value [Line Items]
Fair value of derivative assets	$ 2.2	$ 0.4

XML

Derivatives - Derivatives Designated as Cash Flow Hedges (Details) - USD ($) $ in Millions	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Foreign currency contracts
Derivative [Line Items]
Pre-tax gains (losses) recorded in AOCI	$ (2.4)	$ 4.1
Commodity contracts
Derivative [Line Items]
Pre-tax gains (losses) recorded in AOCI	1.4	(2.1)
Cash Flow Hedging
Derivative [Line Items]
Pre-tax gains (losses) recorded in AOCI	1.2	2.4
Cash Flow Hedging | Foreign currency contracts
Derivative [Line Items]
Pre-tax gains (losses) recorded in AOCI	(2.4)	4.1	$ 1.4
Cash Flow Hedging | Commodity contracts
Derivative [Line Items]
Pre-tax gains (losses) recorded in AOCI	1.4	(2.1)	$ (3.7)
Cash Flow Hedging | Interest rate swaps
Derivative [Line Items]
Pre-tax gains (losses) recorded in AOCI	$ 2.2	$ 0.4

XML

Derivatives - Foreign Currency Contracts (Details) - USD ($) $ in Millions	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Cash Flow Hedging
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Gains recorded in AOCI, beginning of period	$ 1.2	$ 2.4
Losses (gains) recorded in AOCI, end of period	1.2	2.4
Foreign currency contracts
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Gains recorded in AOCI, beginning of period	(2.4)	4.1
Losses (gains) recorded in AOCI, end of period	(2.4)	4.1
Foreign currency contracts | Cash Flow Hedging
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Gains recorded in AOCI, beginning of period	(2.4)	4.1	$ 1.4
Current period (losses) gains recognized in OCI	(3.3)	5.4
Losses (gains) recorded in AOCI, end of period	(2.4)	4.1
Foreign currency contracts | Cash Flow Hedging | Cost of sales
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Gains reclassified from AOCI to net income	$ (3.2)	$ (2.7)

XML

Derivatives - Commodity Contracts (Details) - USD ($) $ in Millions	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017
Cash Flow Hedging
Movement in Accumulated Other Comprehensive Income [Roll Forward]
Losses recorded in AOCI, beginning of period	$ 2.4
Losses (gains) recorded in AOCI, end of period	1.2	$ 2.4
Commodity contracts
Movement in Accumulated Other Comprehensive Income [Roll Forward]
Losses recorded in AOCI, beginning of period	(2.1)
Losses (gains) recorded in AOCI, end of period	1.4	(2.1)
Commodity contracts | Cash Flow Hedging
Movement in Accumulated Other Comprehensive Income [Roll Forward]
Losses recorded in AOCI, beginning of period	(2.1)	(3.7)
Current period gains recognized in OCI	5.2	1.8
Losses (gains) recorded in AOCI, end of period	1.4	(2.1)
Commodity contracts | Cash Flow Hedging | Cost of sales
Movement in Accumulated Other Comprehensive Income [Roll Forward]
Gains reclassified from AOCI to net income	(1.7)	(0.2)
Interest rate contract | Cash Flow Hedging
Movement in Accumulated Other Comprehensive Income [Roll Forward]
Losses recorded in AOCI, beginning of period	0.4	(3.4)
Current period gains recognized in OCI	1.5	1.6
Losses (gains) recorded in AOCI, end of period	2.2	0.4
Interest rate contract | Cash Flow Hedging | Interest expense, net
Movement in Accumulated Other Comprehensive Income [Roll Forward]
Gains reclassified from AOCI to net income	$ 0.3	$ 2.2

XML

Derivatives - Derivatives Not Designated as Hedging Instruments (Details) - USD ($) $ in Millions	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017
Not Designated as Hedging Instrument | Foreign currency contracts | Other operating income, net
Derivative [Line Items]
Foreign currency contracts not designated as hedging	$ 8.4	$ 6.3

XML

Fair Value Measurement - Fair Value of Assets and Liabilities (Details) - USD ($) $ in Millions	Feb. 03, 2018	Jan. 28, 2017
Quoted prices in active markets for identical assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	$ 12.0	$ 11.9
Liabilities	0.0	0.0
Significant other observable inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	18.1	18.9
Liabilities	(2.4)	(3.6)
Carrying Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	30.1	30.8
Liabilities	(2.4)	(3.6)
US Treasury securities | Quoted prices in active markets for identical assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	7.5	8.1
US Treasury securities | Significant other observable inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	0.0	0.0
US Treasury securities | Carrying Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	7.5	8.1
Corporate equity securities | Quoted prices in active markets for identical assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	4.5	3.8
Corporate equity securities | Significant other observable inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	0.0	0.0
Corporate equity securities | Carrying Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	4.5	3.8
Foreign currency contracts | Quoted prices in active markets for identical assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	0.0	0.0
Liabilities	0.0	0.0
Foreign currency contracts | Significant other observable inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	0.0	3.2
Liabilities	(2.3)	(0.2)
Foreign currency contracts | Carrying Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	0.0	3.2
Liabilities	(2.3)	(0.2)
Interest rate swaps | Quoted prices in active markets for identical assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	0.0	0.0
Interest rate swaps | Significant other observable inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	2.2	0.4
Interest rate swaps | Carrying Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	2.2	0.4
US government agency securities | Quoted prices in active markets for identical assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	0.0	0.0
US government agency securities | Significant other observable inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	5.1	4.4
US government agency securities | Carrying Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	5.1	4.4
Corporate bonds and notes | Quoted prices in active markets for identical assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	0.0	0.0
Corporate bonds and notes | Significant other observable inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	10.8	10.9
Corporate bonds and notes | Carrying Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	10.8	10.9
Commodity contracts | Quoted prices in active markets for identical assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities	0.0	0.0
Commodity contracts | Significant other observable inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities	(0.1)	(3.4)
Commodity contracts | Carrying Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities	$ (0.1)	$ (3.4)

XML

Fair Value Measurement - Outstanding Debt (Details) - USD ($) $ in Millions	Feb. 03, 2018	Jan. 28, 2017
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Outstanding debt	$ 718.0	$ 1,338.5
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Outstanding debt	722.5	1,339.8
Senior Notes | Level 2 | Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Outstanding debt	394.5	393.7
Senior Notes | Level 2 | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Outstanding debt	396.3	391.2
Securitization Facility | Level 2 | Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Outstanding debt	0.0	599.7
Securitization Facility | Level 2 | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Outstanding debt	0.0	600.0
Term Loan | Level 2 | Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Outstanding debt	323.5	345.1
Term Loan | Level 2 | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Outstanding debt	$ 326.2	$ 348.6

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Pension Plans - Change in UK Plan Assets (Details) - USD ($) $ in Millions	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Fair value at beginning of year	$ 37.1
Fair value at end of year	37.5	$ 37.1
Pension plan | Foreign Plan
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Fair value at beginning of year	247.6	266.2
Actual return on UK Plan assets	11.0	18.2
Employer contributions	3.2	3.3
Members’ contributions	0.4	0.6
Benefits paid	(8.7)	(9.9)
Plan settlements	(10.8)	0.0
Foreign currency translation	29.5	(30.8)
Fair value at end of year	$ 272.2	$ 247.6

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Pension Plans - Change in UK Benefit Obligation (Details) - Pension plan - Foreign Plan - USD ($) $ in Millions	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Benefit obligation at beginning of year	$ 215.7	$ 214.9
Service cost	2.1	2.0	$ 2.6
Past service cost	0.0	0.5
Interest cost	6.1	7.2	7.7
Members’ contributions	0.4	0.6
Actuarial (gain) loss	2.3	24.1
Benefits paid	(8.7)	(9.9)
Plan settlements	(10.8)	0.0
Foreign currency translation	25.3	(23.7)
Benefit obligation at end of year	232.4	215.7	$ 214.9
Funded status at end of year	$ 39.8	$ 31.9

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Pension Plans - Components of UK Net Asset Recognized (Details) - USD ($) $ in Millions	Feb. 03, 2018	Jan. 28, 2017
Defined Benefit Plan Disclosure [Line Items]
Non-current assets	$ 39.8	$ 31.9
Pension plan | Foreign Plan
Defined Benefit Plan Disclosure [Line Items]
Non-current assets	$ 39.8	$ 31.9

XML

Pension Plans - AOCI Items not yet Recognized (Details) - Pension plan - Foreign Plan - USD ($) $ in Millions	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Defined Benefit Plan Disclosure [Line Items]
Net actuarial losses	$ (51.1)	$ (55.5)	$ (43.1)
Net prior service credits	$ 2.4	$ 9.2	$ 11.1

XML

Pension Plans - Additional Information (Details) - Pension plan	12 Months Ended
	Feb. 03, 2018 USD ($) plan	Jan. 28, 2017 USD ($)	Jan. 30, 2016 USD ($)
Defined Benefit Plan Disclosure [Line Items]
Employer discretionary contribution amount	$ 10,000,000	$ 14,600,000	$ 8,300,000
Employer matching contribution, percent of match	50.00%
Employer matching contribution, maximum, percent of employees' gross pay	6.00%
Number of US non-qualified deferred compensation plans | plan	2
Cost recognized	$ 3,800,000	4,600,000	2,900,000
Foreign Plan
Defined Benefit Plan Disclosure [Line Items]
Future amortization of gain (loss)	1,100,000
Future amortization of prior service cost (credit)	200,000
Accumulated benefit obligation	231,100,000	208,000,000
Employer contributions	3,200,000	3,300,000
Foreign Plan | Minimum
Defined Benefit Plan Disclosure [Line Items]
Estimated future employer contributions in next fiscal year	$ 2,800,000.0
Foreign Plan | Debt Securities
Defined Benefit Plan Disclosure [Line Items]
Target plan asset allocations	53.00%
Foreign Plan | Diversified growth funds
Defined Benefit Plan Disclosure [Line Items]
Target plan asset allocations	34.00%
Foreign Plan | Corporate equity securities
Defined Benefit Plan Disclosure [Line Items]
Target plan asset allocations	8.00%
Foreign Plan | Real estate
Defined Benefit Plan Disclosure [Line Items]
Target plan asset allocations	5.00%
Foreign Plan | United Kingdom
Defined Benefit Plan Disclosure [Line Items]
Employer discretionary contribution amount	$ 2,600,000	$ 1,800,000	$ 2,000,000

XML

Pension Plans - Components of Net Periodic Pension Cost (Details) - USD ($) $ in Millions	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Defined Benefit Plan Disclosure [Line Items]
Net curtailment gain and settlement loss	$ 3.7	$ 0.0	$ 0.0
Pension plan | Foreign Plan
Defined Benefit Plan Disclosure [Line Items]
Service cost	(2.1)	(2.0)	(2.6)
Interest cost	(6.1)	(7.2)	(7.7)
Expected return on UK Plan assets	9.4	10.4	11.5
Amortization of unrecognized actuarial losses	(2.8)	(1.5)	(3.4)
Amortization of unrecognized net prior service credits	1.4	1.9	2.2
Net curtailment gain and settlement loss	3.7	0.0	0.0
Net periodic pension benefit	3.5	1.6	0.0
Other changes in assets and benefit obligations recognized in OCI	(2.9)	(17.8)	14.4
Total recognized in net periodic pension benefit (cost) and OCI	$ 0.6	$ (16.2)	$ 14.4

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Pension Plans - Assumptions used to Determine Benefit Obligations and Periodic Pension Costs (Details) - Pension plan - Foreign Plan	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017
Assumptions used to determine benefit obligations (at the end of the year):
Discount rate	2.60%	2.90%
Salary increases	2.50%	2.00%
Assumptions used to determine net periodic pension costs (at the start of the year):
Discount rate	2.90%	3.60%
Expected return on UK Plan assets	3.80%	4.20%
Salary increases	2.00%	2.50%

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Pension Plans - Fair Value Measurements of Plan Assets (Details) - USD ($) $ in Millions	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	$ 37.5	$ 37.1
Quoted prices in active markets for identical assets (Level 1)
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	30.2	29.6
Significant other observable inputs (Level 2)
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	7.3	7.5
Significant Unobservable inputs (Level 3)
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	14.3	11.8	$ 13.0
Foreign Plan | Pension plan
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	272.2	247.6	$ 266.2
Foreign Plan | Pension plan | Quoted prices in active markets for identical assets (Level 1)
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	50.5	44.2
Foreign Plan | Pension plan | Significant other observable inputs (Level 2)
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	207.4	191.6
Foreign Plan | Pension plan | Significant Unobservable inputs (Level 3)
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	14.3	11.8
Foreign Plan | Pension plan | Corporate equity securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	24.0	22.3
Foreign Plan | Pension plan | Corporate equity securities | Quoted prices in active markets for identical assets (Level 1)
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0.0	0.0
Foreign Plan | Pension plan | Corporate equity securities | Significant other observable inputs (Level 2)
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	24.0	22.3
Foreign Plan | Pension plan | Diversified growth funds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	96.3	80.9
Foreign Plan | Pension plan | Diversified growth funds | Quoted prices in active markets for identical assets (Level 1)
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	49.4	40.7
Foreign Plan | Pension plan | Diversified growth funds | Significant other observable inputs (Level 2)
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	46.9	40.2
Foreign Plan | Pension plan | Fixed income – government bonds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	83.9	81.0
Foreign Plan | Pension plan | Fixed income – government bonds | Significant other observable inputs (Level 2)
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	83.9	81.0
Foreign Plan | Pension plan | Corporate bonds and notes
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	52.6	48.1
Foreign Plan | Pension plan | Corporate bonds and notes | Significant other observable inputs (Level 2)
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	52.6	48.1
Foreign Plan | Pension plan | Property
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	14.3	11.8
Foreign Plan | Pension plan | Property | Significant Unobservable inputs (Level 3)
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	14.3	11.8
Foreign Plan | Pension plan | Cash
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	1.1	3.5
Foreign Plan | Pension plan | Cash | Quoted prices in active markets for identical assets (Level 1)
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	$ 1.1	$ 3.5

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Pension Plans - Changes in Fair Value of Level 3 Investment Assets (Details) - USD ($) $ in Millions	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Fair value at beginning of year	$ 37.1
Fair value at end of year	37.5	$ 37.1
Significant Unobservable inputs (Level 3)
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Fair value at beginning of year	11.8	13.0
Actual return on assets	2.5	(1.2)
Fair value at end of year	$ 14.3	$ 11.8

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Pension Plans - Future Benefits Payments Estimated to be Paid (Details) - Pension plan - Foreign Plan $ in Millions	Feb. 03, 2018 USD ($)
Defined Benefit Plan Disclosure [Line Items]
Fiscal 2019	$ 9.6
Fiscal 2020	9.5
Fiscal 2021	10.0
Fiscal 2022	10.3
Fiscal 2023	10.3
Thereafter	$ 53.4

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Pension Plans - Fair Value of Unfunded, Non-qualified Deferred Compensation Plans Assets (Details) - USD ($) $ in Millions	Feb. 03, 2018	Jan. 28, 2017
Defined Benefit Plan Disclosure [Line Items]
Total assets	$ 37.5	$ 37.1
Level 1
Defined Benefit Plan Disclosure [Line Items]
Total assets	30.2	29.6
Level 2
Defined Benefit Plan Disclosure [Line Items]
Total assets	7.3	7.5
Corporate-owned life insurance plans
Defined Benefit Plan Disclosure [Line Items]
Total assets	7.3	7.5
Corporate-owned life insurance plans | Level 2
Defined Benefit Plan Disclosure [Line Items]
Total assets	7.3	7.5
Money market funds
Defined Benefit Plan Disclosure [Line Items]
Total assets	30.2	29.6
Money market funds | Level 1
Defined Benefit Plan Disclosure [Line Items]
Total assets	$ 30.2	$ 29.6

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Loans, Overdrafts and Long-Term Debt - Summary (Details) - USD ($) $ in Millions	Feb. 03, 2018	Jan. 28, 2017
Debt Disclosure [Abstract]
Senior unsecured notes due 2024, net of unamortized discount	$ 398.9	$ 398.8
Securitization facility	0.0	600.0
Senior unsecured term loan	326.2	348.6
Revolving credit facility	0.0	56.0
Bank overdrafts	14.2	14.2
Total debt	739.3	1,417.6
Less: Current portion of loans and overdrafts	(44.0)	(91.1)
Less: Unamortized capitalized debt issuance fees	(7.1)	(8.6)
Long-term debt	$ 688.2	$ 1,317.9

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Loans, Overdrafts and Long-Term Debt - Additional Information (Detail)			3 Months Ended		12 Months Ended
	May 19, 2014 USD ($)	May 15, 2014 USD ($)	Feb. 03, 2018 USD ($)	Oct. 28, 2017 USD ($)	Feb. 03, 2018 USD ($)	Jan. 28, 2017 USD ($)	Jan. 30, 2016 USD ($)	Sep. 12, 2017 USD ($)	Jul. 29, 2017 USD ($)	Apr. 30, 2016 USD ($)
Debt Instrument [Line Items]
Amortization related to capitalized fees					$ 3,700,000	$ 2,800,000	$ 3,600,000
Payment of debt issuance costs					1,400,000	2,700,000	0
Bank overdrafts			$ 14,200,000		14,200,000	14,200,000
Term Loan
Debt Instrument [Line Items]
Proceeds from debt, net of issuance costs					350,000,000	0	$ 0
Senior Unsecured Notes Due in 2024 | Signet UK Finance plc
Debt Instrument [Line Items]
Capitalized fees			7,000,000		7,000,000
Capitalized issuance costs written off			2,600,000		2,600,000	1,900,000
Amortization related to capitalized fees					700,000	700,000
Face amount	$ 400,000,000
Stated interest rate	4.70%
Proceeds from debt, net of issuance costs	$ 393,900,000
Bridge Loan
Debt Instrument [Line Items]
Payment of debt issuance costs				$ 1,400,000
Interest expense, debt				$ 900,000
Bridge Loan | R2Net Inc.
Debt Instrument [Line Items]
Long-term debt, gross								$ 350,000,000
Credit Facility | Revolving Credit Facility
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity									$ 700,000,000	$ 400,000,000
Capitalized fees, current			1,400,000		1,400,000
Capitalized fees			2,600,000		2,600,000
Capitalized issuance costs written off			1,200,000		1,200,000	800,000
Amortization related to capitalized fees					400,000	400,000
Stand-by letters of credit			$ 15,700,000		$ 15,700,000	$ 15,300,000
Weighted average interest rate			2.46%		2.46%	1.71%
Covenant, maximum leverage ratio					2.50
Covenant, minimum coverage ratio					1.40
Credit Facility | Term Loan
Debt Instrument [Line Items]
Capitalized fees, current			$ 700,000		$ 700,000
Capitalized fees			6,200,000		6,200,000
Capitalized issuance costs written off			$ 3,500,000		3,500,000	$ 2,700,000
Amortization related to capitalized fees					$ 800,000	$ 900,000
Weighted average interest rate			2.42%		2.42%	1.78%
Face amount			$ 357,500,000.0		$ 357,500,000.0
Credit Facility | Term Loan | Year One
Debt Instrument [Line Items]
Quarterly repayment rate			5.00%		5.00%
Credit Facility | Term Loan | Year Two
Debt Instrument [Line Items]
Quarterly repayment rate			7.50%		7.50%
Credit Facility | Term Loan | Year Three
Debt Instrument [Line Items]
Quarterly repayment rate			10.00%		10.00%
Credit Facility | Term Loan | Year Four
Debt Instrument [Line Items]
Quarterly repayment rate			12.50%		12.50%
Credit Facility | Term Loan | Year Five
Debt Instrument [Line Items]
Quarterly repayment rate			15.00%		15.00%
Securitization Facility
Debt Instrument [Line Items]
Capitalized issuance costs written off			$ 3,400,000		$ 3,400,000	$ 3,100,000
Amortization related to capitalized fees			$ 200,000		$ 300,000	$ 700,000
Weighted average interest rate			2.50%		2.50%	2.05%
Face amount		$ 600,000,000
Debt instrument, term		2 years
Debt issuance cost			$ 3,400,000		$ 3,400,000

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Accrued Expenses and Other Current Liabilities - Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Millions	Feb. 03, 2018	Jan. 28, 2017
Payables and Accruals [Abstract]
Accrued compensation	$ 68.3	$ 105.8
Other liabilities	34.7	33.0
Other taxes	36.3	45.1
Payroll taxes	11.8	9.9
Accrued expenses	296.9	284.4
Total accrued expenses and other current liabilities	$ 448.0	$ 478.2

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Accrued Expenses and Other Current Liabilities - Summary of Activity in Sales Returns Reserve (Details) - USD ($) $ in Millions	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Movement in Valuation Allowances and Reserves [Roll Forward]
Beginning balance	$ 13.0	$ 14.0	$ 15.3
Net adjustment	0.5	(1.0)	(1.3)
Ending balance	$ 13.5	$ 13.0	$ 14.0

XML

Accrued Expenses and Other Current Liabilities - Additional Information (Detail)	12 Months Ended
	Feb. 03, 2018
Payables and Accruals [Abstract]
Lifetime diamond guarantee inspection period	6 months

XML

Accrued Expenses and Other Current Liabilities - Summary of Activity in Warranty Reserve (Details) - USD ($) $ in Millions	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance at beginning of period	$ 40.0	$ 41.9	$ 44.9
Warranty expense	8.5	11.5	10.8
Utilized	(11.3)	(13.4)	(13.8)
Balance at end of period	$ 37.2	$ 40.0	$ 41.9

XML

Accrued Expenses and Other Current Liabilities - Components of Warranty Reserve (Details) - USD ($) $ in Millions	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016	Jan. 31, 2015
Warranty Reserve [Line Items]
Warranty reserve	$ 25.7	$ 27.0
Included within accrued expenses above	37.2	40.0	$ 41.9	$ 44.9
Warranty reserves
Warranty Reserve [Line Items]
Current liabilities	11.5	13.0
Warranty reserve	25.7	27.0
Included within accrued expenses above	$ 37.2	$ 40.0

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Deferred Revenue - ESP and Voucher Promotions (Details) - USD ($) $ in Millions	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Deferred Revenue Warranty [Roll Forward]
Voucher promotions and other	$ 41.4	$ 30.3
Total deferred revenue	957.5	935.9
Current liabilities	288.6	276.9
Non-current liabilities	668.9	659.0
Sterling Jewelers
Deferred Revenue Warranty [Roll Forward]
ESP deferred revenue	738.0	737.4	$ 715.1
Zale Jewelry
Deferred Revenue Warranty [Roll Forward]
ESP deferred revenue	$ 178.1	$ 168.2

XML

Deferred Revenue - Rollforward (Details) - USD ($) $ in Millions	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017
Sterling Jewelers
Deferred Revenue Arrangement [Line Items]
ESP deferred revenue, beginning of period	$ 737.4	$ 715.1
Plans sold	269.2	290.8
Revenue recognized	(268.6)	(268.5)
ESP deferred revenue, end of period	738.0	737.4
Zale
Deferred Revenue Arrangement [Line Items]
ESP deferred revenue, beginning of period	168.2	146.1
Plans sold	140.1	150.1
Revenue recognized	(130.2)	(128.0)
ESP deferred revenue, end of period	$ 178.1	$ 168.2

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Other Liabilities-Non-Current - Summary of Other Liabilities (Details) - USD ($) $ in Millions	Feb. 03, 2018	Jan. 28, 2017
Other Liabilities Disclosure [Abstract]
Straight-line rent	$ 91.2	$ 87.2
Deferred compensation	32.2	40.7
Warranty reserve	25.7	27.0
Lease loss reserve	1.2	1.3
Other liabilities	89.3	57.5
Total other liabilities	$ 239.6	$ 213.7

XML

Share-Based Compensation - Share-based Compensation Expense (Details) - USD ($) $ in Millions	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Income tax benefit	$ (5.3)	$ (2.8)	$ (5.9)
Selling, general and administrative expenses
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation	$ 16.1	$ 8.0	$ 16.4

XML

Share-Based Compensation - Unrecognized Compensation Costs related to Awards (Details) $ in Millions	12 Months Ended
	Feb. 03, 2018 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs	$ 31.7
Omnibus Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs	$ 27.6
Weighted average period	2 years
Saving Share Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs	$ 4.1
Weighted average period	1 year 8 months

XML

Share-Based Compensation - Narrative (Details) $ in Millions	12 Months Ended
	Feb. 03, 2018 USD ($) share_option_savings_plan shares	Jan. 28, 2017 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of share option savings plans | share_option_savings_plan	3
Omnibus Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Performance measurement period	3 years
Shares available for grant | shares	7,000,000
Intrinsic value | $	$ 55.0	$ 53.0
Executive Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Plan period	10 years
Annual maximum percent of issued common shares issuable under share plan	10.00%
Discount from market price	15.00%
Employee Share Savings Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	24 months
Irish Sharesave Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	36 months
Minimum | Employee Share Savings Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	24 months
Minimum | Irish Sharesave Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	36 months
Maximum | Employee Share Savings Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	27 months
Maximum | Irish Sharesave Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	42 months

XML

Share-Based Compensation - Significant Assumptions used to Estimate Fair Value of Awards under Omnibus Plan (Details) - Omnibus Plan - $ / shares	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share price (usd per share)	$ 65.74	$ 109.03	$ 136.37
Risk free interest rate	1.40%	1.00%	0.80%
Expected term	2 years 8 months	2 years 9 months 12 days	2 years 10 months 12 days
Expected volatility	32.30%	28.50%	25.40%
Dividend yield	2.10%	1.10%	0.70%
Weighted average grant date fair value per share of awards granted (usd per share)	$ 63.42	$ 106.48	$ 134.46

XML

Share-Based Compensation - Summary of Activity of Awards Granted under Omnibus Plan (Details) - Omnibus Plan - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Beginning Balance (shares)	0.7
Granted (shares)	0.9
Vested (shares)	(0.1)
Lapsed (shares)	(0.4)
Ending Balance (shares)	1.1	0.7
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Beginning Balance (usd per share)	$ 111.98
Granted (usd per share)	63.42	$ 106.48	$ 134.46
Vested (usd per share)	105.76
Lapsed (usd per share)	84.41
Ending Balance (usd per share)	$ 82.65	$ 111.98
Weighted average remaining contractual life	1 year 6 months	1 year 3 months 12 days
Intrinsic value	$ 55.0	$ 53.0

XML

Share-Based Compensation - Additional Information about Awards Granted under Omnibus Plan (Details) - USD ($) $ in Millions	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Omnibus Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total intrinsic value of awards vested	$ 7.1	$ 13.6	$ 22.2

XML

Share-Based Compensation - Significant Assumptions used to Estimate Fair Value of Awards under Share Saving Plan (Details) - Saving Share Plans - $ / shares	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share price (usd per share)	$ 59.84	$ 84.37	$ 139.18
Exercise price (usd per share)	$ 52.000000	$ 67.24000000	$ 114.67000000
Risk free interest rate	1.20%	0.60%	0.70%
Expected term	2 years 8 months 10 days	2 years 8 months 10 days	2 years 7 months 10 days
Expected volatility	37.00%	31.30%	27.10%
Dividend yield	2.70%	1.70%	0.80%
Weighted average grant date fair value per share of awards granted (usd per share)	$ 15.22	$ 22.82	$ 34.76

XML

Share-Based Compensation - Summary of Activity of Awards Granted under Share Saving Plan (Details) - Saving Share Plans - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Beginning Balance (shares)	0.3
Granted (shares)	0.1
Exercised (shares)	0.0
Lapsed (shares)	(0.1)
Ending Balance (shares)	0.3	0.3
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Beginning Balance (usd per share)	$ 74.30
Granted (usd per share)	52.00
Exercised (usd per share)	46.55
Lapsed (usd per share)	82.91
Ending Balance (usd per share)	$ 62.80	$ 74.30
Weighted average remaining contractual life	1 year 9 months 24 days	1 year 11 months 24 days
Intrinsic value	$ 0.0	$ 3.0
Shares Exercisable (shares)	0.0	0.0
Weighted Average Exercise Price, Shares Exercisable (usd per share)	$ 0.00	$ 0.00
Intrinsic Value, Shares Exercisable	$ 0.0	$ 0.0

XML

Share-Based Compensation - Additional Information about Awards Granted under Share Saving Plan (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cash received from share options exercised	$ 0.3	$ 2.1	$ 5.0
Saving Share Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant date fair value per share of awards granted (usd per share)	$ 15.22	$ 22.82	$ 34.76
Total intrinsic value of options exercised	$ 0.1	$ 1.5	$ 6.4
Cash received from share options exercised	$ 0.3	$ 1.4	$ 4.0

XML

Commitments and Contingencies - Operating Leases (Details) - USD ($) $ in Millions	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Minimum rentals	$ 528.1	$ 524.4	$ 525.7
Contingent rent	8.5	10.2	15.3
Sublease income	(0.5)	(0.6)	(0.7)
Total	$ 536.1	$ 534.0	$ 540.3

XML

Commitments and Contingencies - Future Minimum Payments (Details) $ in Millions	Feb. 03, 2018 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Fiscal 2019	$ 460.3
Fiscal 2020	405.3
Fiscal 2021	371.4
Fiscal 2022	328.8
Fiscal 2023	284.8
Thereafter	907.3
Total	$ 2,757.9

XML

Commitments and Contingencies - Narrative (Details) $ in Millions		1 Months Ended	12 Months Ended
	Aug. 01, 2016 employee	Aug. 31, 2016 lawsuit	Feb. 03, 2018 USD ($) Property employee	Jan. 28, 2017 USD ($)
Loss Contingencies [Line Items]
Number of property leases in United Kingdom			19
Number of additional properties sublet			10
Capital commitments related to expansion and renovation of stores | $			$ 46.9	$ 48.4
Environmental Protection Agency Collective Action
Loss Contingencies [Line Items]
Number of plaintiffs | employee	10,314		9,124
S.D.N.Y. Cases
Loss Contingencies [Line Items]
Loss contingency, new claims filed, number | lawsuit		2

XML

Condensed Consolidating Financial Information - Condensed Consolidated Income Statement (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Feb. 03, 2018	Oct. 28, 2017	Jul. 29, 2017	Apr. 29, 2017	Jan. 28, 2017	Oct. 29, 2016	Jul. 30, 2016	Apr. 30, 2016	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Condensed Income Statements, Captions [Line Items]
Sales	$ 2,293.1	$ 1,156.9	$ 1,399.6	$ 1,403.4	$ 2,269.9	$ 1,186.2	$ 1,373.4	$ 1,578.9	$ 6,253.0	$ 6,408.4	$ 6,550.2
Cost of sales									(4,063.0)	(4,047.6)	(4,109.8)
Gross margin	919.8	321.1	457.9	491.2	945.5	350.0	464.9	600.4	2,190.0	2,360.8	2,440.4
Selling, general and administrative expenses									(1,872.2)	(1,880.2)	(1,987.6)
Credit transaction, net									1.3	0.0	0.0
Other operating income, net									260.8	282.6	250.9
Operating income									579.9	763.2	703.7
Intra-entity interest income (expense)									0.0	0.0
Interest expense, net									(52.7)	(49.4)	(45.9)
Income before income taxes									527.2	713.8	657.8
Income taxes									(7.9)	(170.6)	(189.9)
Equity in income of subsidiaries									0.0	0.0
Net income	$ 343.0	$ (12.1)	$ 85.2	$ 70.3	$ 287.8	$ 14.8	$ 81.9	$ 146.8	519.3	543.2	467.9
Dividends on redeemable convertible preferred shares									(32.9)	(11.9)	0.0
Net income attributable to common shareholders									486.4	531.3	467.9
Consolidation, Eliminations
Condensed Income Statements, Captions [Line Items]
Sales									0.0	0.0	0.0
Cost of sales									0.0	0.0	0.0
Gross margin									0.0	0.0	0.0
Selling, general and administrative expenses									0.0	0.0	0.0
Credit transaction, net									0.0
Other operating income, net									0.0	0.0	0.0
Operating income									0.0	0.0	0.0
Intra-entity interest income (expense)									0.0	0.0	0.0
Interest expense, net									0.0	0.0	0.0
Income before income taxes									0.0	0.0	0.0
Income taxes									0.0	0.0	0.0
Equity in income of subsidiaries									(983.8)	(1,116.6)	(1,045.4)
Net income									(983.8)	(1,116.6)	(1,045.4)
Dividends on redeemable convertible preferred shares									0.0	0.0	0.0
Net income attributable to common shareholders									(983.8)	(1,116.6)	(1,045.4)
Guarantor Subsidiaries | Reportable Legal Entities
Condensed Income Statements, Captions [Line Items]
Sales									5,866.6	6,141.9	6,444.8
Cost of sales									(3,926.6)	(3,997.2)	(4,089.3)
Gross margin									1,940.0	2,144.7	2,355.5
Selling, general and administrative expenses									(1,738.2)	(1,775.1)	(1,942.7)
Credit transaction, net									1.3
Other operating income, net									260.3	293.8	254.8
Operating income									463.4	663.4	667.6
Intra-entity interest income (expense)									(190.2)	(188.4)	(186.0)
Interest expense, net									(21.6)	(16.6)	(14.8)
Income before income taxes									251.6	458.4	466.8
Income taxes									(21.3)	(175.1)	(192.7)
Equity in income of subsidiaries									229.6	276.4	281.4
Net income									459.9	559.7	555.5
Dividends on redeemable convertible preferred shares									0.0	0.0	0.0
Net income attributable to common shareholders									459.9	559.7	555.5
Non-Guarantor Subsidiaries | Reportable Legal Entities
Condensed Income Statements, Captions [Line Items]
Sales									386.4	266.5	105.4
Cost of sales									(136.4)	(50.4)	(20.5)
Gross margin									250.0	216.1	84.9
Selling, general and administrative expenses									(132.1)	(103.8)	(42.7)
Credit transaction, net									0.0
Other operating income, net									0.4	(11.2)	(3.9)
Operating income									118.3	101.1	38.3
Intra-entity interest income (expense)									171.4	169.6	167.2
Interest expense, net									(11.2)	(13.0)	(11.2)
Income before income taxes									278.5	257.7	194.3
Income taxes									13.2	4.3	2.6
Equity in income of subsidiaries									233.1	295.7	293.9
Net income									524.8	557.7	490.8
Dividends on redeemable convertible preferred shares									0.0	0.0	0.0
Net income attributable to common shareholders									524.8	557.7	490.8
Signet Jewelers Limited | Reportable Legal Entities
Condensed Income Statements, Captions [Line Items]
Sales									0.0	0.0	0.0
Cost of sales									0.0	0.0	0.0
Gross margin									0.0	0.0	0.0
Selling, general and administrative expenses									(1.9)	(1.3)	(2.2)
Credit transaction, net									0.0
Other operating income, net									0.1	0.0	0.0
Operating income									(1.8)	(1.3)	(2.2)
Intra-entity interest income (expense)									0.0	0.0	0.0
Interest expense, net									0.0	0.0	0.0
Income before income taxes									(1.8)	(1.3)	(2.2)
Income taxes									0.0	0.0	0.0
Equity in income of subsidiaries									521.1	544.5	470.1
Net income									519.3	543.2	467.9
Net income attributable to common shareholders									486.4	531.3	467.9
Signet UK Finance plc | Reportable Legal Entities
Condensed Income Statements, Captions [Line Items]
Sales									0.0	0.0	0.0
Cost of sales									0.0	0.0	0.0
Gross margin									0.0	0.0	0.0
Selling, general and administrative expenses									0.0	0.0	0.0
Credit transaction, net									0.0
Other operating income, net									0.0	0.0	0.0
Operating income									0.0	0.0	0.0
Intra-entity interest income (expense)									18.8	18.8	18.8
Interest expense, net									(19.9)	(19.8)	(19.9)
Income before income taxes									(1.1)	(1.0)	(1.1)
Income taxes									0.2	0.2	0.2
Equity in income of subsidiaries									0.0	0.0	0.0
Net income									(0.9)	(0.8)	(0.9)
Dividends on redeemable convertible preferred shares									0.0	0.0	0.0
Net income attributable to common shareholders									$ (0.9)	$ (0.8)	$ (0.9)

XML

Condensed Consolidating Financial Information - Condensed Consolidated Statement of Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Feb. 03, 2018	Oct. 28, 2017	Jul. 29, 2017	Apr. 29, 2017	Jan. 28, 2017	Oct. 29, 2016	Jul. 30, 2016	Apr. 30, 2016	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Condensed Statement of Comprehensive Income [Line Items]
Net income	$ 343.0	$ (12.1)	$ 85.2	$ 70.3	$ 287.8	$ 14.8	$ 81.9	$ 146.8	$ 519.3	$ 543.2	$ 467.9
Other comprehensive (loss) income:
Foreign currency translation adjustments									50.9	(25.6)	(40.2)
Available-for-sale securities:
Unrealized gain (loss)									0.3	0.0	(0.4)
Cash flow hedges:
Unrealized gain (loss)									1.8	6.9	(11.8)
Reclassification adjustment for losses to net income									(3.5)	(0.6)	3.5
Pension plan:
Actuarial gain (loss)									0.0	(13.6)	10.9
Reclassification adjustment to net income for amortization of actuarial losses									2.2	1.2	2.7
Prior service costs									(0.5)	(0.4)	(0.5)
Reclassification adjustment to net income for amortization of net prior service credits									(1.1)	(1.5)	(1.7)
Net curtailment gain and settlement loss									(3.0)	0.0	0.0
Total other comprehensive (loss) income									47.1	(33.6)	(37.5)
Total comprehensive income									566.4	509.6	430.4
Consolidation, Eliminations
Condensed Statement of Comprehensive Income [Line Items]
Net income									(983.8)	(1,116.6)	(1,045.4)
Other comprehensive (loss) income:
Foreign currency translation adjustments									(50.9)	25.6	40.2
Available-for-sale securities:
Unrealized gain (loss)									(0.3)	0.0	0.4
Cash flow hedges:
Unrealized gain (loss)									(1.8)	(6.9)	11.8
Reclassification adjustment for losses to net income									3.5	0.6	(3.5)
Pension plan:
Actuarial gain (loss)										13.6	(10.9)
Reclassification adjustment to net income for amortization of actuarial losses									(2.2)	(1.2)	(2.7)
Prior service costs									0.5	0.4	0.5
Reclassification adjustment to net income for amortization of net prior service credits									1.1	1.5	1.7
Net curtailment gain and settlement loss									3.0
Total other comprehensive (loss) income									(47.1)	33.6	37.5
Total comprehensive income									(1,030.9)	(1,083.0)	(1,007.9)
Guarantor Subsidiaries | Reportable Legal Entities
Condensed Statement of Comprehensive Income [Line Items]
Net income									459.9	559.7	555.5
Other comprehensive (loss) income:
Foreign currency translation adjustments									50.2	(31.2)	(44.8)
Available-for-sale securities:
Unrealized gain (loss)									0.0	0.0	0.0
Cash flow hedges:
Unrealized gain (loss)									1.8	6.9	(11.8)
Reclassification adjustment for losses to net income									(3.5)	(0.6)	3.5
Pension plan:
Actuarial gain (loss)										(13.6)	10.9
Reclassification adjustment to net income for amortization of actuarial losses									2.2	1.2	2.7
Prior service costs									(0.5)	(0.4)	(0.5)
Reclassification adjustment to net income for amortization of net prior service credits									(1.1)	(1.5)	(1.7)
Net curtailment gain and settlement loss									(3.0)
Total other comprehensive (loss) income									46.1	(39.2)	(41.7)
Total comprehensive income									506.0	520.5	513.8
Non-Guarantor Subsidiaries | Reportable Legal Entities
Condensed Statement of Comprehensive Income [Line Items]
Net income									524.8	557.7	490.8
Other comprehensive (loss) income:
Foreign currency translation adjustments									0.7	5.6	4.6
Available-for-sale securities:
Unrealized gain (loss)									0.3	0.0	(0.4)
Cash flow hedges:
Unrealized gain (loss)									0.0	0.0	0.0
Reclassification adjustment for losses to net income									0.0	0.0	0.0
Pension plan:
Actuarial gain (loss)									0.0	0.0	0.0
Reclassification adjustment to net income for amortization of actuarial losses									0.0	0.0	0.0
Prior service costs									0.0	0.0	0.0
Reclassification adjustment to net income for amortization of net prior service credits									0.0	0.0	0.0
Net curtailment gain and settlement loss									0.0
Total other comprehensive (loss) income									1.0	5.6	4.2
Total comprehensive income									525.8	563.3	495.0
Signet Jewelers Limited | Reportable Legal Entities
Condensed Statement of Comprehensive Income [Line Items]
Net income									519.3	543.2	467.9
Other comprehensive (loss) income:
Foreign currency translation adjustments									50.9	(25.6)	(40.2)
Available-for-sale securities:
Unrealized gain (loss)									0.3	0.0	(0.4)
Cash flow hedges:
Unrealized gain (loss)									1.8	6.9	(11.8)
Reclassification adjustment for losses to net income									(3.5)	(0.6)	3.5
Pension plan:
Actuarial gain (loss)										(13.6)	10.9
Reclassification adjustment to net income for amortization of actuarial losses									2.2	1.2	2.7
Prior service costs									(0.5)	(0.4)	(0.5)
Reclassification adjustment to net income for amortization of net prior service credits									(1.1)	(1.5)	(1.7)
Net curtailment gain and settlement loss									(3.0)
Total other comprehensive (loss) income									47.1	(33.6)	(37.5)
Total comprehensive income									566.4	509.6	430.4
Signet UK Finance plc | Reportable Legal Entities
Condensed Statement of Comprehensive Income [Line Items]
Net income									(0.9)	(0.8)	(0.9)
Other comprehensive (loss) income:
Foreign currency translation adjustments									0.0	0.0	0.0
Available-for-sale securities:
Unrealized gain (loss)									0.0	0.0	0.0
Cash flow hedges:
Unrealized gain (loss)									0.0	0.0	0.0
Reclassification adjustment for losses to net income									0.0	0.0	0.0
Pension plan:
Actuarial gain (loss)									0.0	0.0	0.0
Reclassification adjustment to net income for amortization of actuarial losses									0.0	0.0	0.0
Prior service costs									0.0	0.0	0.0
Reclassification adjustment to net income for amortization of net prior service credits									0.0	0.0	0.0
Net curtailment gain and settlement loss									0.0
Total other comprehensive (loss) income									0.0	0.0	0.0
Total comprehensive income									$ (0.9)	$ (0.8)	$ (0.9)

XML

Condensed Consolidating Financial Information - Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Millions	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016	Jan. 31, 2015
Current assets:
Cash and cash equivalents	$ 225.1	$ 98.7	$ 137.7	$ 193.6
Accounts receivable, net	692.5	1,858.0
Intra-entity receivables, net	0.0	0.0
Other receivables	87.2	95.9
Other current assets	158.2	136.3
Income taxes	2.6	4.4
Inventories	2,280.5	2,449.3
Total current assets	3,446.1	4,642.6
Non-current assets:
Property, plant and equipment, net	877.9	822.9
Goodwill	821.7	517.6	515.5
Intangible assets, net	481.5	417.0
Investment in subsidiaries	0.0
Intra-entity receivables, net	0.0
Other assets	171.2	165.1
Deferred tax assets	1.4	0.7
Retirement benefit asset	39.8	31.9
Total assets	5,839.6	6,597.8
Current liabilities:
Loans and overdrafts	44.0	91.1
Accounts payable	237.0	255.7
Intra-entity payables, net		0.0
Accrued expenses and other current liabilities	448.0	478.2
Deferred revenue	288.6	276.9
Income taxes	19.6	101.8
Total current liabilities	1,037.2	1,203.7
Non-current liabilities:
Long-term debt	688.2	1,317.9
Other liabilities	239.6	213.7
Deferred revenue	668.9	659.0
Deferred tax liabilities	92.3	101.4
Total liabilities	2,726.2	3,495.7
Series A redeemable convertible preferred shares		611.9
Shareholders’ equity:
Total shareholders’ equity	2,499.8	2,490.2	3,060.7	2,810.4
Total liabilities, redeemable convertible preferred shares and shareholders’ equity	5,839.6	6,597.8
Consolidation, Eliminations
Current assets:
Cash and cash equivalents	0.0	0.0	0.0	0.0
Accounts receivable, net	0.0	0.0
Intra-entity receivables, net	(169.8)	(157.8)
Other receivables	0.0	0.0
Other current assets	0.0	0.0
Income taxes	0.0	0.0
Inventories	0.0	0.0
Total current assets	(169.8)	(157.8)
Non-current assets:
Property, plant and equipment, net	0.0
Goodwill	0.0
Intangible assets, net	0.0	0.0
Investment in subsidiaries	(4,919.8)	(4,430.1)
Intra-entity receivables, net	(3,259.0)	(4,050.0)
Other assets	0.0
Deferred tax assets	0.0
Retirement benefit asset	0.0
Total assets	(8,348.6)	(8,637.9)
Current liabilities:
Loans and overdrafts	0.0	0.0
Accounts payable	0.0	0.0
Intra-entity payables, net	(169.8)	(157.8)
Accrued expenses and other current liabilities	0.0	0.0
Deferred revenue	0.0	0.0
Income taxes	0.0	0.0
Total current liabilities	(169.8)	(157.8)
Non-current liabilities:
Intra-entity payables, net	(3,259.0)	(4,050.0)
Total liabilities	(3,428.8)	(4,207.8)
Series A redeemable convertible preferred shares		0.0
Shareholders’ equity:
Total shareholders’ equity	(4,919.8)	(4,430.1)
Total liabilities, redeemable convertible preferred shares and shareholders’ equity	(8,348.6)	(8,637.9)
Guarantor Subsidiaries | Reportable Legal Entities
Current assets:
Cash and cash equivalents	150.5	70.3	102.0	166.5
Accounts receivable, net	692.5	1,858.0
Intra-entity receivables, net	0.0	145.1
Other receivables	62.0	71.1
Other current assets	154.4	131.4
Income taxes	2.6	4.4
Inventories	2,201.3	2,371.8
Total current assets	3,263.3	4,652.1
Non-current assets:
Property, plant and equipment, net	870.1	818.5
Goodwill	516.4	514.0
Intangible assets, net	410.9	417.0
Investment in subsidiaries	1,163.6	721.6
Intra-entity receivables, net	0.0
Other assets	140.1	134.8
Deferred tax assets	1.3	0.6
Retirement benefit asset	39.8	31.9
Total assets	6,405.5	7,290.5
Current liabilities:
Loans and overdrafts	44.7	91.8
Accounts payable	202.2	248.2
Intra-entity payables, net	158.5
Accrued expenses and other current liabilities	397.5	429.2
Deferred revenue	276.2	275.5
Income taxes	36.7	115.5
Total current liabilities	1,115.8	1,160.2
Non-current liabilities:
Long-term debt	293.0	323.6
Intra-entity payables, net	3,259.0	4,050.0
Other liabilities	233.0	208.7
Deferred revenue	668.9	659.0
Deferred tax liabilities	76.7	101.4
Total liabilities	5,646.4	6,502.9
Shareholders’ equity:
Total shareholders’ equity	759.1	787.6
Total liabilities, redeemable convertible preferred shares and shareholders’ equity	6,405.5	7,290.5
Non-Guarantor Subsidiaries | Reportable Legal Entities
Current assets:
Cash and cash equivalents	72.8	26.6	33.7	24.9
Intra-entity receivables, net	166.9
Other receivables	25.2	24.8
Other current assets	3.8	4.9
Income taxes	0.0
Inventories	79.2	77.5
Total current assets	347.9	133.8
Non-current assets:
Property, plant and equipment, net	7.8	4.4
Goodwill	305.3	3.6
Intangible assets, net	70.6	0.0
Investment in subsidiaries	606.0	590.9
Intra-entity receivables, net	2,859.0	3,647.1
Other assets	31.1	30.3
Deferred tax assets	0.1	0.1
Retirement benefit asset	0.0
Total assets	4,227.8	4,410.2
Current liabilities:
Loans and overdrafts	0.0	0.0
Accounts payable	34.8	7.5
Intra-entity payables, net	0.0	157.8
Accrued expenses and other current liabilities	20.9	16.6
Deferred revenue	12.4	1.4
Income taxes	(16.9)	(13.5)
Total current liabilities	51.2	169.8
Non-current liabilities:
Long-term debt		600.0
Other liabilities	6.6	5.0
Deferred tax liabilities	15.6
Total liabilities	73.4	774.8
Shareholders’ equity:
Total shareholders’ equity	4,154.4	3,635.4
Total liabilities, redeemable convertible preferred shares and shareholders’ equity	4,227.8	4,410.2
Signet Jewelers Limited | Reportable Legal Entities
Current assets:
Cash and cash equivalents	1.7	1.7	1.9	2.1
Accounts receivable, net	0.0	0.0
Intra-entity receivables, net		12.7
Other receivables	0.0	0.0
Other current assets		0.0
Income taxes	0.0	0.0
Inventories	0.0	0.0
Total current assets	1.7	14.4
Non-current assets:
Property, plant and equipment, net	0.0
Goodwill	0.0
Intangible assets, net	0.0	0.0
Investment in subsidiaries	3,150.2	3,117.6
Intra-entity receivables, net	0.0
Other assets	0.0
Deferred tax assets	0.0
Retirement benefit asset	0.0
Total assets	3,151.9	3,132.0
Current liabilities:
Loans and overdrafts	0.0	0.0
Accounts payable	0.0	0.0
Intra-entity payables, net	11.3	0.0
Accrued expenses and other current liabilities	27.2	29.9
Deferred revenue	0.0	0.0
Income taxes	0.0	0.0
Total current liabilities	38.5	29.9
Non-current liabilities:
Total liabilities	38.5	29.9
Shareholders’ equity:
Total shareholders’ equity	2,499.8	2,490.2
Total liabilities, redeemable convertible preferred shares and shareholders’ equity	3,151.9	3,132.0
Signet UK Finance plc | Reportable Legal Entities
Current assets:
Cash and cash equivalents	0.1	0.1	$ 0.1	$ 0.1
Accounts receivable, net	0.0	0.0
Intra-entity receivables, net	2.9	0.0
Other receivables	0.0	0.0
Other current assets		0.0
Income taxes	0.0	0.0
Inventories	0.0	0.0
Total current assets	3.0	0.1
Non-current assets:
Property, plant and equipment, net	0.0	0.0
Goodwill	0.0	0.0
Intangible assets, net	0.0	0.0
Investment in subsidiaries	0.0	0.0
Intra-entity receivables, net	400.0	402.9
Other assets		0.0
Deferred tax assets	0.0	0.0
Retirement benefit asset	0.0	0.0
Total assets	403.0	403.0
Current liabilities:
Loans and overdrafts	(0.7)	(0.7)
Accounts payable	0.0	0.0
Intra-entity payables, net	0.0	0.0
Accrued expenses and other current liabilities	2.4	2.5
Deferred revenue	0.0	0.0
Income taxes	(0.2)	(0.2)
Total current liabilities	1.5	1.6
Non-current liabilities:
Long-term debt	395.2	394.3
Intra-entity payables, net		0.0
Other liabilities		0.0
Deferred revenue		0.0
Total liabilities	396.7	395.9
Shareholders’ equity:
Total shareholders’ equity	6.3	7.1
Total liabilities, redeemable convertible preferred shares and shareholders’ equity	403.0	403.0
Series A Redeemable Convertible Preferred Stock
Non-current liabilities:
Series A redeemable convertible preferred shares	613.6	611.9
Series A Redeemable Convertible Preferred Stock | Consolidation, Eliminations
Non-current liabilities:
Series A redeemable convertible preferred shares	0.0
Series A Redeemable Convertible Preferred Stock | Guarantor Subsidiaries | Reportable Legal Entities
Non-current liabilities:
Series A redeemable convertible preferred shares	0.0	0.0
Series A Redeemable Convertible Preferred Stock | Non-Guarantor Subsidiaries | Reportable Legal Entities
Non-current liabilities:
Series A redeemable convertible preferred shares	0.0	0.0
Series A Redeemable Convertible Preferred Stock | Signet Jewelers Limited | Reportable Legal Entities
Non-current liabilities:
Series A redeemable convertible preferred shares	613.6	611.9
Series A Redeemable Convertible Preferred Stock | Signet UK Finance plc | Reportable Legal Entities
Non-current liabilities:
Series A redeemable convertible preferred shares	$ 0.0	$ 0.0

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Condensed Consolidating Financial Information - Condensed Consolidated Statement of Cash Flows (Details) - USD ($) $ in Millions	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$ 1,940.5	$ 678.3	$ 443.3
Investing activities
Purchase of property, plant and equipment	(237.4)	(278.0)	(226.5)
Investment in subsidiaries	0.0	0.0	0.0
Purchase of available-for-sale securities	(2.4)	(10.4)	(6.2)
Proceeds from available-for-sale securities	2.2	10.0	4.0
Acquisition of R2Net Inc., net of cash acquired	(331.8)
Net cash used in investing activities	(569.4)	(278.4)	(228.7)
Financing activities
Dividends paid on common shares	(76.5)	(75.6)	(67.1)
Dividends paid on redeemable convertible preferred shares	(34.7)	0.0	0.0
Intra-entity dividends paid	0.0	0.0	0.0
Repurchase of common shares	(460.0)	(1,000.0)	(130.0)
Proceeds from issuance of common shares	0.3	2.1	5.0
Net settlement of equity based awards	(2.9)	(4.9)	(8.3)
Proceeds from issuance of redeemable convertible preferred shares, net of issuance costs	0.0	611.3	0.0
Excess tax benefit from exercise of share awards	0.0	2.4	6.9
Proceeds from revolving credit facility	814.0	1,270.0	316.0
Repayments of revolving credit facility	(870.0)	(1,214.0)	(316.0)
Payment of debt issuance costs	(1.4)	(2.7)	0.0
Principal payments under capital lease obligations	0.0	(0.2)	(1.0)
Proceeds from (repayment of) short-term borrowings	(0.1)	(10.2)	(47.1)
Intra-entity activity, net	0.0	0.0	0.0
Net cash used in financing activities	(1,253.6)	(438.2)	(266.6)
Cash and cash equivalents at beginning of period	98.7	137.7	193.6
Increase (decrease) in cash and cash equivalents	117.5	(38.3)	(52.0)
Effect of exchange rate changes on cash and cash equivalents	8.9	(0.7)	(3.9)
Cash and cash equivalents at end of period	225.1	98.7	137.7
Consolidation, Eliminations
Cash flows from operating activities:
Net cash provided by (used in) operating activities	(1,269.9)	(1,630.1)	(195.9)
Investing activities
Purchase of property, plant and equipment	0.0	0.0	0.0
Investment in subsidiaries	244.9	610.0	0.3
Purchase of available-for-sale securities	0.0	0.0	0.0
Proceeds from available-for-sale securities	0.0	0.0	0.0
Acquisition of R2Net Inc., net of cash acquired	0.0
Net cash used in investing activities	244.9	610.0	0.3
Financing activities
Dividends paid on common shares	0.0	0.0	0.0
Dividends paid on redeemable convertible preferred shares	0.0
Intra-entity dividends paid	1,269.9	1,630.1	195.9
Repurchase of common shares	0.0	0.0	0.0
Proceeds from issuance of common shares	(244.9)	(610.0)	(0.3)
Net settlement of equity based awards	0.0	0.0	0.0
Proceeds from issuance of redeemable convertible preferred shares, net of issuance costs		0.0
Excess tax benefit from exercise of share awards		0.0	0.0
Proceeds from revolving credit facility	0.0	0.0	0.0
Repayments of revolving credit facility	0.0	0.0	0.0
Payment of debt issuance costs	0.0	0.0
Principal payments under capital lease obligations		0.0	0.0
Proceeds from (repayment of) short-term borrowings	0.0	0.0	0.0
Intra-entity activity, net	0.0		0.0
Net cash used in financing activities	1,025.0	1,020.1	195.6
Cash and cash equivalents at beginning of period	0.0	0.0	0.0
Increase (decrease) in cash and cash equivalents	0.0	0.0	0.0
Effect of exchange rate changes on cash and cash equivalents	0.0	0.0	0.0
Cash and cash equivalents at end of period	0.0	0.0	0.0
Guarantor Subsidiaries | Reportable Legal Entities
Cash flows from operating activities:
Net cash provided by (used in) operating activities	1,856.7	724.8	325.7
Investing activities
Purchase of property, plant and equipment	(236.3)	(277.9)	(225.9)
Investment in subsidiaries	(25.0)		(0.3)
Purchase of available-for-sale securities	0.0	0.0	0.0
Proceeds from available-for-sale securities	0.0	0.0	0.0
Acquisition of R2Net Inc., net of cash acquired	(331.8)
Net cash used in investing activities	(593.1)	(277.9)	(226.2)
Financing activities
Dividends paid on common shares	0.0	0.0	0.0
Dividends paid on redeemable convertible preferred shares	0.0
Intra-entity dividends paid	(800.0)	(730.0)	(149.3)
Repurchase of common shares	0.0	0.0	0.0
Proceeds from issuance of common shares	219.9	610.0	0.0
Net settlement of equity based awards	0.0	0.0	0.0
Proceeds from issuance of redeemable convertible preferred shares, net of issuance costs		0.0
Excess tax benefit from exercise of share awards		2.4	6.9
Proceeds from revolving credit facility	814.0	1,270.0	316.0
Repayments of revolving credit facility	(870.0)	(1,214.0)	(316.0)
Payment of debt issuance costs	(1.4)	(2.1)
Principal payments under capital lease obligations		(0.2)	(1.0)
Proceeds from (repayment of) short-term borrowings	(0.1)	(10.2)	(47.1)
Intra-entity activity, net	(532.2)	(386.6)	54.9
Net cash used in financing activities	(1,192.1)	(477.1)	(160.6)
Cash and cash equivalents at beginning of period	70.3	102.0	166.5
Increase (decrease) in cash and cash equivalents	71.5	(30.2)	(61.1)
Effect of exchange rate changes on cash and cash equivalents	8.7	(1.5)	(3.4)
Cash and cash equivalents at end of period	150.5	70.3	102.0
Non-Guarantor Subsidiaries | Reportable Legal Entities
Cash flows from operating activities:
Net cash provided by (used in) operating activities	586.0	525.6	215.0
Investing activities
Purchase of property, plant and equipment	(1.1)	(0.1)	(0.6)
Purchase of available-for-sale securities	(2.4)	(10.4)	(6.2)
Proceeds from available-for-sale securities	2.2	10.0	4.0
Acquisition of R2Net Inc., net of cash acquired	0.0
Net cash used in investing activities	(1.3)	(0.5)	(2.8)
Financing activities
Dividends paid on common shares	0.0	0.0	0.0
Dividends paid on redeemable convertible preferred shares	0.0
Intra-entity dividends paid	(469.9)	(900.1)	(46.6)
Repurchase of common shares	0.0	0.0	0.0
Proceeds from issuance of common shares	25.0		0.0
Net settlement of equity based awards	0.0	0.0	0.0
Excess tax benefit from exercise of share awards		0.0	0.0
Proceeds from revolving credit facility	0.0	0.0	0.0
Repayments of revolving credit facility	0.0	0.0	0.0
Payment of debt issuance costs		(0.6)
Principal payments under capital lease obligations		0.0	0.0
Proceeds from (repayment of) short-term borrowings	0.0	0.0	0.0
Intra-entity activity, net	506.2	367.7	(156.3)
Net cash used in financing activities	(538.7)	(533.0)	(202.9)
Cash and cash equivalents at beginning of period	26.6	33.7	24.9
Increase (decrease) in cash and cash equivalents	46.0	(7.9)	9.3
Effect of exchange rate changes on cash and cash equivalents	0.2	0.8	(0.5)
Cash and cash equivalents at end of period	72.8	26.6	33.7
Signet Jewelers Limited | Reportable Legal Entities
Cash flows from operating activities:
Net cash provided by (used in) operating activities	767.8	1,057.9	98.6
Investing activities
Purchase of property, plant and equipment	0.0	0.0	0.0
Investment in subsidiaries	(219.9)	(610.0)
Purchase of available-for-sale securities	0.0	0.0	0.0
Proceeds from available-for-sale securities	0.0	0.0	0.0
Acquisition of R2Net Inc., net of cash acquired	0.0
Net cash used in investing activities	(219.9)	(610.0)	0.0
Financing activities
Dividends paid on common shares	(76.5)	(75.6)	(67.1)
Dividends paid on redeemable convertible preferred shares	(34.7)
Intra-entity dividends paid	0.0	0.0	0.0
Repurchase of common shares	(460.0)	(1,000.0)	(130.0)
Proceeds from issuance of common shares	0.3	2.1	5.0
Net settlement of equity based awards	(2.9)	(4.9)	(8.3)
Proceeds from issuance of redeemable convertible preferred shares, net of issuance costs		611.3
Excess tax benefit from exercise of share awards		0.0	0.0
Proceeds from revolving credit facility	0.0	0.0	0.0
Repayments of revolving credit facility	0.0	0.0	0.0
Payment of debt issuance costs	0.0	0.0
Principal payments under capital lease obligations		0.0	0.0
Proceeds from (repayment of) short-term borrowings	0.0	0.0	0.0
Intra-entity activity, net	25.9	19.0	101.6
Net cash used in financing activities	(547.9)	(448.1)	(98.8)
Cash and cash equivalents at beginning of period	1.7	1.9	2.1
Increase (decrease) in cash and cash equivalents		(0.2)	(0.2)
Effect of exchange rate changes on cash and cash equivalents	0.0	0.0	0.0
Cash and cash equivalents at end of period	1.7	1.7	1.9
Signet UK Finance plc | Reportable Legal Entities
Cash flows from operating activities:
Net cash provided by (used in) operating activities	(0.1)	0.1	(0.1)
Investing activities
Purchase of property, plant and equipment	0.0	0.0	0.0
Investment in subsidiaries	0.0	0.0	0.0
Purchase of available-for-sale securities	0.0	0.0	0.0
Proceeds from available-for-sale securities	0.0	0.0	0.0
Acquisition of R2Net Inc., net of cash acquired	0.0
Net cash used in investing activities	0.0	0.0	0.0
Financing activities
Dividends paid on common shares	0.0	0.0	0.0
Dividends paid on redeemable convertible preferred shares	0.0
Intra-entity dividends paid	0.0	0.0	0.0
Repurchase of common shares	0.0	0.0	0.0
Proceeds from issuance of common shares		0.0	0.3
Net settlement of equity based awards	0.0	0.0	0.0
Proceeds from issuance of redeemable convertible preferred shares, net of issuance costs		0.0
Excess tax benefit from exercise of share awards		0.0	0.0
Proceeds from revolving credit facility	0.0	0.0	0.0
Repayments of revolving credit facility	0.0	0.0	0.0
Payment of debt issuance costs		0.0
Principal payments under capital lease obligations		0.0	0.0
Proceeds from (repayment of) short-term borrowings	0.0	0.0	0.0
Intra-entity activity, net	0.1	(0.1)	(0.2)
Net cash used in financing activities	0.1	(0.1)	0.1
Cash and cash equivalents at beginning of period	0.1	0.1	0.1
Increase (decrease) in cash and cash equivalents		0.0	0.0
Effect of exchange rate changes on cash and cash equivalents	0.0	0.0	0.0
Cash and cash equivalents at end of period	0.1	0.1	0.1
Term Loan
Financing activities
Proceeds from debt	350.0	0.0	0.0
Repayments of term loan	(372.3)	(16.4)	(25.0)
Term Loan | Consolidation, Eliminations
Financing activities
Proceeds from debt	0.0
Repayments of term loan	0.0	0.0	0.0
Term Loan | Guarantor Subsidiaries | Reportable Legal Entities
Financing activities
Proceeds from debt	350.0
Repayments of term loan	(372.3)	(16.4)	(25.0)
Term Loan | Non-Guarantor Subsidiaries | Reportable Legal Entities
Financing activities
Proceeds from debt	0.0
Repayments of term loan	0.0	0.0	0.0
Term Loan | Signet Jewelers Limited | Reportable Legal Entities
Financing activities
Proceeds from debt	0.0
Repayments of term loan	0.0	0.0	0.0
Term Loan | Signet UK Finance plc | Reportable Legal Entities
Financing activities
Proceeds from debt	0.0
Repayments of term loan	0.0	0.0	0.0
Securitization facility
Financing activities
Proceeds from debt	1,745.9	2,404.1	2,303.9
Repayments of term loan	(2,345.9)	(2,404.1)	(2,303.9)
Securitization facility | Consolidation, Eliminations
Financing activities
Proceeds from debt	0.0	0.0	0.0
Repayments of term loan	0.0	0.0	0.0
Securitization facility | Non-Guarantor Subsidiaries | Reportable Legal Entities
Financing activities
Proceeds from debt	1,745.9	2,404.1	2,303.9
Repayments of term loan	(2,345.9)	(2,404.1)	(2,303.9)
Securitization facility | Signet Jewelers Limited | Reportable Legal Entities
Financing activities
Proceeds from debt	0.0	0.0	0.0
Repayments of term loan	0.0	0.0	0.0
Securitization facility | Signet UK Finance plc | Reportable Legal Entities
Financing activities
Proceeds from debt	0.0	0.0	0.0
Repayments of term loan	$ 0.0	$ 0.0	$ 0.0

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Quarterly Financial Information - Unaudited (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Feb. 03, 2018	Oct. 28, 2017	Jul. 29, 2017	Apr. 29, 2017	Jan. 28, 2017	Oct. 29, 2016	Jul. 30, 2016	Apr. 30, 2016	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Quarterly Financial Information Disclosure [Abstract]
Sales	$ 2,293.1	$ 1,156.9	$ 1,399.6	$ 1,403.4	$ 2,269.9	$ 1,186.2	$ 1,373.4	$ 1,578.9	$ 6,253.0	$ 6,408.4	$ 6,550.2
Gross margin	919.8	321.1	457.9	491.2	945.5	350.0	464.9	600.4	2,190.0	2,360.8	2,440.4
Net income	$ 343.0	$ (12.1)	$ 85.2	$ 70.3	$ 287.8	$ 14.8	$ 81.9	$ 146.8	$ 519.3	$ 543.2	$ 467.9
Earnings per common share:
Earnings per share - basic (usd per share)	$ 5.70	$ (0.20)	$ 1.34	$ 1.03	$ 4.17	$ 0.20	$ 1.06	$ 1.87	$ 7.72	$ 7.13	$ 5.89
Earnings per share - diluted (usd per share)	$ 5.24	$ (0.20)	$ 1.33	$ 1.03	$ 3.92	$ 0.20	$ 1.06	$ 1.87	$ 7.44	$ 7.08	$ 5.87