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Restructuring Plans | 6 Months Ended
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Aug. 01, 2020
Restructuring and Related Activities [Abstract] |
Restructuring Plans | Restructuring Plans Signet Path to Brilliance Plan During the first quarter of Fiscal 2019, Signet launched a three-year comprehensive transformation plan, the “Signet Path to Brilliance” plan (the “Plan”), to reposition the Company to be a share-gaining, OmniChannel jewelry category leader. The Plan was originally expected to result in pre-tax charges in the range of $200 million - $220 million over the duration of the plan of which $105 million - $115 million were expected to be cash charges. To date the Company has incurred $246 million under the Plan, of which $122.3 million is non-cash charges, which have exceeded the original estimates of the Plan based primarily on certain accelerated and enhanced actions which have taken place in the first half of Fiscal 2021, specifically as it relates to the optimization of its real estate footprint and the right-sizing of staffing at its stores and support centers. The Company is currently evaluating its initiatives under the Plan and its future costs in light of COVID-19; however, the Company currently expects to incur an additional $15 million - $20 million of costs related to the Plan during the remainder of Fiscal 2021, of which $14 million - $18 million are expected to be cash charges. Restructuring charges and other Plan related costs of $28.7 million and $41.0 million were recognized in the 13 and 26 weeks ended August 1, 2020, respectively, primarily related to store closure costs (including non-cash accelerated depreciation on property and equipment), severance costs and professional fees for legal and consulting services. Restructuring charges and other Plan related costs are classified in the condensed consolidated statements of operations as follows:
|  |  | 13 weeks ended |  |  |  | 26 weeks ended |  |
(in millions) | Statement of operations caption |  | August 1, 2020 |  | August 3, 2019 |  | August 1, 2020 |  | August 3, 2019
Inventory charges | Restructuring charges - cost of sales |  | $ | (0.2) |  |  | $ | 4.4 |  |  | $ | (0.6) |  |  | $ | 4.4 |
Other Plan related expenses | Restructuring charges |  | 28.9 |  |  | 23.4 |  |  | 41.6 |  |  | 50.2 |
Total Signet Path to Brilliance Plan expenses |  |  | $ | 28.7 |  |  | $ | 27.8 |  |  | $ | 41.0 |  |  | $ | 54.6 |
The composition of the restructuring charges the Company incurred during the 13 and 26 weeks ended August 1, 2020, as well as the cumulative amount incurred under the Plan through August 1, 2020, were as follows:
|  | 13 weeks ended |  | 26 weeks ended |  | Cumulative amount
(in millions) |  | August 1, 2020 |  | August 1, 2020 |  | August 1, 2020
Inventory charges |  | $ | (0.2) |  |  | $ | (0.6) |  |  | $ | 70.8 |
Termination benefits |  | 20.2 |  |  | 23.1 |  |  | 48.9 |
Store closure and other costs |  | 8.7 |  |  | 18.5 |  |  | 126.3 |
Total Signet Path to Brilliance Plan expenses |  | $ | 28.7 |  |  | $ | 41.0 |  |  | $ | 246.0 |
The following table summarizes the activity related to the Plan liabilities for Fiscal 2021:
(in millions) |  | Termination benefits |  | Store closure and other costs |  | Consolidated
Balance at February 1, 2020 |  | $ | 2.0 |  |  | $ | 10.4 |  |  | $ | 12.4 |
Payments and other adjustments |  | (7.1) |  |  | (22.2) |  |  | (29.3) |
Charged to expense |  | 23.1 |  |  | 17.9 |  |  | 41.0 |
Balance at August 1, 2020 |  | $ | 18.0 |  |  | $ | 6.1 |  |  | $ | 24.1 |

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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