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Income Taxes (Tables) | 12 Months Ended
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Feb. 02, 2019
Income Tax Disclosure [Abstract] |
Summary of Tax Expense by Jurisdiction |
(in millions) | Fiscal 2019 |  | Fiscal 2018 |  | Fiscal 2017
Income (loss) before income taxes: |  |  |  |  |
– US | $ | (1,135.8 | ) |  | $ | 202.2 |  |  | $ | 424.0 |
– Foreign | 333.2 |  |  | 325.0 |  |  | 289.8 |
Total income (loss) before income taxes | $ | (802.6 | ) |  | $ | 527.2 |  |  | $ | 713.8 |
Current taxation: |  |  |  |  |
– US | $ | (55.2 | ) |  | $ | 35.9 |  |  | $ | 137.6 |
– Foreign | 15.8 |  |  | 6.1 |  |  | 3.9 |
Deferred taxation: |  |  |  |  |
– US | (85.8 | ) |  | (34.8 | ) |  | 28.1 |
– Foreign | (20.0 | ) |  | 0.7 |  |  | 1.0 |
Total income tax expense (benefit) | $ | (145.2 | ) |  | $ | 7.9 |  |  | $ | 170.6 |
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 2019 |  | Fiscal 2018 |  | Fiscal 2017
US federal income tax rates | 21.0 | % |  | 35.0 | % |  | 35.0 | %
US state income taxes | 2.3 | % |  | 1.9 | % |  | 1.9 | %
Differences between US federal and foreign statutory income tax rates | 0.3 | % |  | (1.0 | )% |  | (0.2 | )%
Expenditures permanently disallowable for tax purposes, net of permanent tax benefits | (0.8 | )% |  | 1.0 | % |  | 0.4 | %
Disallowable transaction costs | — | % |  | 0.4 | % |  | 0.1 | %
Impact of global reinsurance arrangements | 3.1 | % |  | (8.1 | )% |  | (5.4 | )%
Impact of global financing arrangements | 4.2 | % |  | (11.4 | )% |  | (8.2 | )%
Benefit in current year taxes - the TCJ Act | — | % |  | (4.1 | )% |  | — | %
Remeasurement of deferred taxes - the TCJ Act | — | % |  | (12.3 | )% |  | — | %
Impairment of goodwill | (13.4 | )% |  | — | % |  | — | %
Out of period adjustment | 1.4 | % |  | — | % |  | — | %
Other items | — | % |  | 0.1 | % |  | 0.3 | %
Effective tax rate | 18.1 | % |  | 1.5 | % |  | 23.9 | %
Schedule of Income Tax Provision | he Company has completed its analysis during the fiscal year ended February 2, 2019 and no material adjustments have been recognized under SAB 118. Accordingly, our income tax provision as of February 3, 2018, reflected provisional amounts with respect to Fiscal 2018 impacts of the TCJ Act on the effective tax rate as follows:
| 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 2, 2019 |  | February 3, 2018
(in millions) | Assets |  | (Liabilities) |  | Total |  | Assets |  | (Liabilities) |  | Total
Intangible assets | $ | — |  |  | $ | (63.8 | ) |  | $ | (63.8 | ) |  | $ | — |  |  | $ | (130.9 | ) |  | $ | (130.9 | )
US property, plant and equipment | — |  |  | (68.2 | ) |  | (68.2 | ) |  | — |  |  | (65.2 | ) |  | (65.2 | )
Foreign property, plant and equipment | 6.5 |  |  | — |  |  | 6.5 |  |  | 6.2 |  |  | — |  |  | 6.2 |
Inventory valuation | — |  |  | (179.1 | ) |  | (179.1 | ) |  | — |  |  | (193.7 | ) |  | (193.7 | )
Allowances for doubtful accounts | — |  |  | — |  |  | — |  |  | 34.4 |  |  | — |  |  | 34.4 |
Revenue deferral | 122.0 |  |  | — |  |  | 122.0 |  |  | 147.1 |  |  | — |  |  | 147.1 |
Derivative instruments | — |  |  | (1.3 | ) |  | (1.3 | ) |  | — |  |  | (0.3 | ) |  | (0.3 | )
Straight-line lease payments | 26.2 |  |  | — |  |  | 26.2 |  |  | 26.5 |  |  | — |  |  | 26.5 |
Deferred compensation | 7.5 |  |  | — |  |  | 7.5 |  |  | 9.2 |  |  | — |  |  | 9.2 |
Retirement benefit obligations | — |  |  | (5.8 | ) |  | (5.8 | ) |  | — |  |  | (7.6 | ) |  | (7.6 | )
Share-based compensation | 3.5 |  |  | — |  |  | 3.5 |  |  | 4.4 |  |  | — |  |  | 4.4 |
Other temporary differences | 46.7 |  |  | — |  |  | 46.7 |  |  | 47.1 |  |  | — |  |  | 47.1 |
Net operating losses and foreign tax credits | 151.8 |  |  | — |  |  | 151.8 |  |  | 56.9 |  |  | — |  |  | 56.9 |
Value of capital losses | 13.9 |  |  | — |  |  | 13.9 |  |  | 12.0 |  |  | — |  |  | 12.0 |
Total gross deferred tax assets (liabilities) | $ | 378.1 |  |  | $ | (318.2 | ) |  | $ | 59.9 |  |  | $ | 343.8 |  |  | $ | (397.7 | ) |  | $ | (53.9 | )
Valuation allowance | (38.9 | ) |  | — |  |  | (38.9 | ) |  | (37.0 | ) |  | — |  |  | (37.0 | )
Deferred tax assets (liabilities) | $ | 339.2 |  |  | $ | (318.2 | ) |  | $ | 21.0 |  |  | $ | 306.8 |  |  | $ | (397.7 | ) |  | $ | (90.9 | )
Disclosed as: |  |  |  |  |  |  |  |  |  |  |
Non-current assets |  |  |  |  | $ | 21.0 |  |  |  |  |  |  | $ | 1.4 |
Non-current liabilities |  |  |  |  | — |  |  |  |  |  |  | (92.3 | )
Deferred tax assets (liabilities) |  |  |  |  | $ | 21.0 |  |  |  |  |  |  | $ | (90.9 | )
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 2019 |  | Fiscal 2018 |  | Fiscal 2017
Unrecognized tax benefits, beginning of period | $ | 12.0 |  |  | $ | 12.0 |  |  | $ | 11.4 |
Increases related to current year tax positions | 2.5 |  |  | 2.3 |  |  | 2.4 |
Increases related to prior year tax positions | 6.2 |  |  | — |  |  | — |
Lapse of statute of limitations | (2.4 | ) |  | (2.4 | ) |  | (1.9 | )
Difference on foreign currency translation | (0.2 | ) |  | 0.1 |  |  | 0.1 |
Unrecognized tax benefits, end of period | $ | 18.1 |  |  | $ | 12.0 |  |  | $ | 12.0 |

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