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Revenue recognition | 12 Months Ended
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Jan. 30, 2021
Revenue from Contract with Customer [Abstract] |
Revenue recognition | Revenue recognition The following tables provide the Company’s total sales, disaggregated by banner, for Fiscal 2021, Fiscal 2020 and Fiscal 2019:
|  | Fiscal 2021
(in millions) |  | North America |  | International |  | Other |  | Consolidated
Sales by banner: |  |  |  |  |  |  |  |
Kay |  | $ | 2,008.6 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,008.6 |
Zales |  | 1,121.6 |  |  | — |  |  | — |  |  | 1,121.6 |
Jared |  | 920.9 |  |  | — |  |  | — |  |  | 920.9 |
Piercing Pagoda |  | 337.5 |  |  | — |  |  | — |  |  | 337.5 |
James Allen |  | 301.4 |  |  | — |  |  | — |  |  | 301.4 |
Peoples |  | 150.9 |  |  | — |  |  | — |  |  | 150.9 |
International segment banners |  | — |  |  | 355.9 |  |  | — |  |  | 355.9 |
Other(1) |  | — |  |  | — |  |  | 30.1 |  |  | 30.1 |
Total sales |  | $ | 4,840.9 |  |  | $ | 355.9 |  |  | $ | 30.1 |  |  | $ | 5,226.9 |
|  | Fiscal 2020
(in millions) |  | North America |  | International |  | Other |  | Consolidated
Sales by banner: |  |  |  |  |  |  |  |
Kay |  | $ | 2,414.0 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,414.0 |
Zales |  | 1,276.8 |  |  | — |  |  | — |  |  | 1,276.8 |
Jared |  | 1,088.1 |  |  | — |  |  | — |  |  | 1,088.1 |
Piercing Pagoda |  | 331.7 |  |  | — |  |  | — |  |  | 331.7 |
James Allen |  | 250.6 |  |  | — |  |  | — |  |  | 250.6 |
Peoples |  | 204.6 |  |  | — |  |  | — |  |  | 204.6 |
International segment banners |  | — |  |  | 518.0 |  |  | — |  |  | 518.0 |
Other(1) |  | — |  |  | — |  |  | 53.3 |  |  | 53.3 |
Total sales |  | $ | 5,565.8 |  |  | $ | 518.0 |  |  | $ | 53.3 |  |  | $ | 6,137.1 |
|  | Fiscal 2019
(in millions) |  | North America |  | International |  | Other |  | Consolidated
Sales by banner: |  |  |  |  |  |  |  |
Kay |  | $ | 2,475.2 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,475.2 |
Zales |  | 1,280.5 |  |  | — |  |  | — |  |  | 1,280.5 |
Jared |  | 1,141.4 |  |  | — |  |  | — |  |  | 1,141.4 |
Piercing Pagoda |  | 302.5 |  |  | — |  |  | — |  |  | 302.5 |
James Allen |  | 223.7 |  |  | — |  |  | — |  |  | 223.7 |
Peoples |  | 218.4 |  |  | — |  |  | — |  |  | 218.4 |
International segment banners |  | — |  |  | 576.5 |  |  | — |  |  | 576.5 |
Other(1) |  | — |  |  | — |  |  | 28.9 |  |  | 28.9 |
Total sales |  | $ | 5,641.7 |  |  | $ | 576.5 |  |  | $ | 28.9 |  |  | $ | 6,247.1 |
(1) Includes sales from Signet’s diamond sourcing initiative. The following tables provide the Company’s total sales, disaggregated by major product, for Fiscal 2021, Fiscal 2020 and Fiscal 2019:
| Fiscal 2021
(in millions) | North America |  | International |  | Other |  | Consolidated
Sales by product: |  |  |  |  |  |  |
Bridal | $ | 2,140.5 |  |  | $ | 166.4 |  |  | $ | — |  |  | $ | 2,306.9 |
Fashion | 1,987.9 |  |  | 69.2 |  |  | — |  |  | 2,057.1 |
Watches | 145.6 |  |  | 108.5 |  |  | — |  |  | 254.1 |
Other (1) | 566.9 |  |  | 11.8 |  |  | 30.1 |  |  | 608.8 |
Total sales | $ | 4,840.9 |  |  | $ | 355.9 |  |  | $ | 30.1 |  |  | $ | 5,226.9 |
| Fiscal 2020
(in millions) | North America |  | International |  | Other |  | Consolidated
Sales by product: |  |  |  |  |  |  |
Bridal | $ | 2,403.4 |  |  | $ | 214.3 |  |  | $ | — |  |  | $ | 2,617.7 |
Fashion | 2,131.0 |  |  | 110.5 |  |  | — |  |  | 2,241.5 |
Watches | 214.9 |  |  | 169.1 |  |  | — |  |  | 384.0 |
Other (1) | 816.5 |  |  | 24.1 |  |  | 53.3 |  |  | 893.9 |
Total sales | $ | 5,565.8 |  |  | $ | 518.0 |  |  | $ | 53.3 |  |  | $ | 6,137.1 |
| Fiscal 2019
(in millions) | North America |  | International |  | Other |  | Consolidated
Sales by product: |  |  |  |  |  |  |
Bridal | $ | 2,478.6 |  |  | $ | 234.0 |  |  | $ | — |  |  | $ | 2,712.6 |
Fashion | 2,128.1 |  |  | 126.3 |  |  | — |  |  | 2,254.4 |
Watches | 238.2 |  |  | 190.9 |  |  | — |  |  | 429.1 |
Other (1) | 796.8 |  |  | 25.3 |  |  | 28.9 |  |  | 851.0 |
Total sales | $ | 5,641.7 |  |  | $ | 576.5 |  |  | $ | 28.9 |  |  | $ | 6,247.1 |
(1) Other revenue primarily includes gift and other miscellaneous jewelry sales, extended service plans, repairs and other miscellaneous non-jewelry sales. The following tables provide the Company’s total sales, disaggregated by channel, for Fiscal 2021, Fiscal 2020 and Fiscal 2019:
| Fiscal 2021
(in millions) | North America |  | International |  | Other |  | Consolidated
Sales by channel: |  |  |  |  |  |  |
Store | $ | 3,772.9 |  |  | $ | 238.9 |  |  | $ | — |  |  | $ | 4,011.8 |
eCommerce | 1,068.0 |  |  | 117.0 |  |  | — |  |  | 1,185.0 |
Other (1) | — |  |  | — |  |  | 30.1 |  |  | 30.1 |
Total sales | $ | 4,840.9 |  |  | $ | 355.9 |  |  | $ | 30.1 |  |  | $ | 5,226.9 |
| Fiscal 2020
(in millions) | North America |  | International |  | Other |  | Consolidated
Sales by channel: |  |  |  |  |  |  |
Store | $ | 4,880.2 |  |  | $ | 453.2 |  |  | $ | — |  |  | $ | 5,333.4 |
eCommerce | 685.6 |  |  | 64.8 |  |  | — |  |  | 750.4 |
Other (1) | — |  |  | — |  |  | 53.3 |  |  | 53.3 |
Total sales | $ | 5,565.8 |  |  | $ | 518.0 |  |  | $ | 53.3 |  |  | $ | 6,137.1 |
| Fiscal 2019
(in millions) | North America |  | International |  | Other |  | Consolidated
Sales by channel: |  |  |  |  |  |  |
Store | $ | 5,022.4 |  |  | $ | 513.4 |  |  | $ | — |  |  | $ | 5,535.8 |
eCommerce | 619.3 |  |  | 63.1 |  |  | — |  |  | 682.4 |
Other (1) | — |  |  | — |  |  | 28.9 |  |  | 28.9 |
Total sales | $ | 5,641.7 |  |  | $ | 576.5 |  |  | $ | 28.9 |  |  | $ | 6,247.1 |
(1) Includes sales from Signet’s diamond sourcing initiative. The Company recognizes revenues when control of the promised goods and services are transferred to customers, in an amount that reflects the consideration expected to be received in exchange for those goods. Transfer of control generally occurs at the time merchandise is taken from a store, or upon receipt of the merchandise by a customer for an eCommerce shipment. The Company excludes all taxes assessed by government authorities and collected from a customer from its reported sales. The Company’s revenue streams and their respective accounting treatments are further discussed below. On February 4, 2018, the Company adopted ASU No. 2014‑09 Revenue from Contracts with Customers (Topic 606) and related updates (“ASC 606”) 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. During Fiscal 2019, an additional $111.2 million of revenue was recognized primarily for non-cash consideration from customer trade-ins and $16.5 million of previously capitalized contract acquisitions costs were reclassified to beginning retained earnings. Merchandise sales 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. These direct costs primarily include sales commissions and credit card fees. Amortization of deferred ESP selling costs is included within selling, general and administrative expenses in the consolidated statements of operations. Amortization of deferred ESP selling costs was $26.3 million, $29.5 million and $52.4 million in Fiscal 2021, and Fiscal 2020 and Fiscal 2019, respectively. Unamortized deferred selling costs as of Fiscal 2021 and Fiscal 2020 were as follows:
(in millions) | January 30, 2021 |  | February 1, 2020
Deferred ESP selling costs |  |  |
Other current assets | $ | 26.2 |  |  | $ | 23.6 |
Other assets | 85.1 |  |  | 80.0 |
Total deferred ESP selling costs | $ | 111.3 |  |  | $ | 103.6 |
The North America segment sells ESP, subject to certain conditions, to perform repair work over the life of the product. Customers generally pay for ESP at the store at the time of merchandise sale. 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. Lifetime ESP revenue is deferred and recognized over a maximum of 17 years after the sale of the warranty contract. Although claims experience varies between the Company’s national banners, thereby resulting in different recognition rates, approximately 55% of revenue is recognized within the first two years on a weighted average basis. The North America segment 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, generally over the three year protection period. 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 maintains control of the merchandise through the point of sale as well as provides independent advice, guidance and after-sales service to customers. Supplier products are selected at the discretion of the Company, and the Company is responsible for determining the selling price and for physical security of the products. The products sold from consignment inventory are similar in nature to other products that are sold to customers and are sold on the same terms. Deferred revenue Deferred revenue is comprised primarily of ESP and voucher promotions as follows:
(in millions) | January 30, 2021 |  | February 1, 2020
ESP deferred revenue | $ | 1,028.9 |  |  | $ | 960.0 |
Voucher promotions and other | 43.1 |  |  | 37.7 |
Total deferred revenue | $ | 1,072.0 |  |  | $ | 997.7 |
Disclosed as: |  |  |
Current liabilities | $ | 288.7 |  |  | $ | 266.2 |
Non-current liabilities | 783.3 |  |  | 731.5 |
Total deferred revenue | $ | 1,072.0 |  |  | $ | 997.7 |
(in millions) | Fiscal 2021 |  | Fiscal 2020
ESP deferred revenue, beginning of period | $ | 960.0 |  |  | $ | 927.6 |
Plans sold (1) | 337.4 |  |  | 405.1 |
Revenue recognized (2) | (268.5) |  |  | (372.7) |
ESP deferred revenue, end of period | $ | 1,028.9 |  |  | $ | 960.0 |
(1) Includes impact of foreign exchange translation. (2) During Fiscal 2021 and Fiscal 2020, the Company recognized sales of approximately $163.5 million and $193.6 million, respectively, related to deferred revenue that existed at the beginning of the year in respect to ESP and voucher promotions. Additionally, no ESP revenue was recognized beginning on March 23, 2020 due to the temporary closure of the Company’s stores and service centers as a result of COVID-19. As the Company began reopening stores and service centers during the second quarter of Fiscal 2021, the Company resumed recognizing service revenue as it fulfilled its performance obligations under the ESP.

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- 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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b)(2) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 + Details
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