XML 22 R10.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Revenue recognition | 3 Months Ended
--- | ---
May 05, 2018
Revenue from Contract with Customer [Abstract] |
Revenue recognition | Revenue recognition The following tables provide the Company’s revenue, disaggregated by major product and channel, for the 13 weeks ended May 5, 2018 and April 29, 2017:
| 13 weeks ended May 5, 2018 |  | 13 weeks ended April 29, 2017
(in millions) | North America |  | International |  | Other |  | Consolidated |  | North America |  | International |  | Other |  | Consolidated
Sales by product: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Bridal | $ | 617.9 |  |  | $ | 55.6 |  |  | $ | — |  |  | $ | 673.5 |  |  | $ | 562.9 |  |  | $ | 53.1 |  |  | $ | — |  |  | $ | 616.0 |
Fashion | 461.1 |  |  | 25.9 |  |  | — |  |  | 487.0 |  |  | 450.9 |  |  | 25.8 |  |  | — |  |  | 476.7 |
Watches | 52.2 |  |  | 39.1 |  |  | — |  |  | 91.3 |  |  | 51.5 |  |  | 36.5 |  |  | — |  |  | 88.0 |
Other(1) | 216.6 |  |  | 8.1 |  |  | 4.1 |  |  | 228.8 |  |  | 209.1 |  |  | 7.1 |  |  | 6.5 |  |  | 222.7 |
Total sales | $ | 1,347.8 |  |  | $ | 128.7 |  |  | $ | 4.1 |  |  | $ | 1,480.6 |  |  | $ | 1,274.4 |  |  | $ | 122.5 |  |  | $ | 6.5 |  |  | $ | 1,403.4 |
(1) | Other revenue primarily includes gift and other miscellaneous jewelery sales, repairs, warranty and other miscellaneous non-jewelry sales.
| 13 weeks ended May 5, 2018 |  | 13 weeks ended April 29, 2017
(in millions) | North America |  | International |  | Other |  | Consolidated |  | North America |  | International |  | Other |  | Consolidated
Sales by channel: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Store | $ | 1,213.7 |  |  | $ | 116.3 |  |  | $ | 4.1 |  |  | $ | 1,334.1 |  |  | $ | 1,203.3 |  |  | $ | 112.6 |  |  | $ | 6.5 |  |  | $ | 1,322.4 |
E-commerce(1) | 134.1 |  |  | 12.4 |  |  | — |  |  | 146.5 |  |  | 71.1 |  |  | 9.9 |  |  | — |  |  | 81.0 |
Total sales | $ | 1,347.8 |  |  | $ | 128.7 |  |  | $ | 4.1 |  |  | $ | 1,480.6 |  |  | $ | 1,274.4 |  |  | $ | 122.5 |  |  | $ | 6.5 |  |  | $ | 1,403.4 |
(1) | North America includes $53.3 million in the 13 weeks ended May 5, 2018 from James Allen which was acquired during the third quarter of Fiscal 2018. See Note 5 for additional information regarding the acquisition.
For the majority of the Company’s transactions, revenue is recognized when there is persuasive evidence of an arrangement, products have been delivered 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 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. Unamortized deferred selling costs as of May 5, 2018, February 3, 2018 and April 29, 2017 were as follows:
(in millions) | May 5, 2018 |  | February 3, 2018 |  | April 29, 2017
Deferred ESP selling costs |  |  |  |  |
Other current assets | $ | 30.6 |  |  | $ | 30.9 |  |  | $ | 29.6 |
Other assets | 89.2 |  |  | 89.5 |  |  | 86.7 |
Total deferred ESP selling costs | $ | 119.8 |  |  | $ | 120.4 |  |  | $ | 116.3 |
The North America segment 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 within 17 years of the sale of the warranty contract. The North America segment 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. Deferred revenue Deferred revenue is comprised primarily of ESP and sale voucher promotions and other as follows:
(in millions) | May 5, 2018 |  | February 3, 2018 |  | April 29, 2017
ESP deferred revenue | $ | 913.5 |  |  | $ | 916.1 |  |  | $ | 903.7 |
Voucher promotions and other | 38.9 |  |  | 41.4 |  |  | 27.0 |
Total deferred revenue | $ | 952.4 |  |  | $ | 957.5 |  |  | $ | 930.7 |
Disclosed as: |  |  |  |  |
Current liabilities | $ | 284.9 |  |  | $ | 288.6 |  |  | $ | 272.1 |
Non-current liabilities | 667.5 |  |  | 668.9 |  |  | 658.6 |
Total deferred revenue | $ | 952.4 |  |  | $ | 957.5 |  |  | $ | 930.7 |
|  | 13 weeks ended
(in millions) |  | May 5, 2018 |  | April 29, 2017
ESP deferred revenue, beginning of period |  | $ | 916.1 |  |  | $ | 905.6 |
Plans sold(1) |  | 96.0 |  |  | 96.6 |
Revenue recognized |  | (98.6 | ) |  | (98.5 | )
ESP deferred revenue, end of period |  | $ | 913.5 |  |  | $ | 903.7 |
(1) | Includes impact of foreign exchange translation.

X
- References No definition available. + Details
Name: | us-gaap_RevenueFromContractWithCustomerAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -URI http://asc.fasb.org/topic&trid=2122369 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 + Details
Name: | us-gaap_RevenueFromContractWithCustomerTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration