XML 68 R47.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Income taxes (Tables) | 12 Months Ended
--- | ---
Jan. 29, 2022
Income Tax Disclosure [Abstract] |
Summary of Tax Expense by Jurisdiction |
(in millions) | Fiscal 2022 |  | Fiscal 2021 |  | Fiscal 2020
Income (loss) before income taxes: |  |  |  |  |
– US | $ | 665.9 |  |  | $ | (173.4) |  |  | $ | 32.3 |
– Foreign | 218.5 |  |  | 83.7 |  |  | 97.4 |
Total income (loss) before income taxes | $ | 884.4 |  |  | $ | (89.7) |  |  | $ | 129.7 |
Current taxation: |  |  |  |  |
– US | $ | 108.1 |  |  | $ | (222.2) |  |  | $ | 3.0 |
– Foreign | 7.6 |  |  | 0.7 |  |  | 1.9 |
Deferred taxation: |  |  |  |  |
– US | 8.4 |  |  | 158.4 |  |  | 17.0 |
– Foreign | (9.6) |  |  | (11.4) |  |  | 2.3 |
Total income tax expense (benefit) | $ | 114.5 |  |  | $ | (74.5) |  |  | $ | 24.2 |
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 2022 |  | Fiscal 2021 |  | Fiscal 2020
US federal income tax rates | 21.0 | % |  | 21.0 | % |  | 21.0 | %
US state income taxes | 3.3 | % |  | 4.1 | % |  | 3.1 | %
Differences between US federal and foreign statutory income tax rates | (0.1) | % |  | 0.1 | % |  | 1.3 | %
Expenditures permanently disallowable for tax purposes, net of permanent tax benefits | — | % |  | (4.7) | % |  | 3.3 | %
Impact of global reinsurance arrangements | (2.2) | % |  | 14.1 | % |  | (20.3) | %
Impact of global financing arrangements | (0.6) | % |  | — | % |  | — | %
Impairment of goodwill | — | % |  | (2.4) | % |  | 7.5 | %
CARES Act | (1.4) | % |  | 111.9 | % |  | — | %
Valuation allowance | (6.5) | % |  | (55.5) | % |  | — | %
Other items | (0.6) | % |  | (5.5) | % |  | 2.8 | %
Effective tax rate | 12.9 | % |  | 83.1 | % |  | 18.7 | %
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets (liabilities) consisted of the following:
| January 29, 2022 |  | January 30, 2021
(in millions) | Assets |  | (Liabilities) |  | Total |  | Assets |  | (Liabilities) |  | Total
Intangible assets | $ | — |  |  | $ | (77.0) |  |  | $ | (77.0) |  |  | $ | — |  |  | $ | (41.7) |  |  | $ | (41.7) |
US property, plant and equipment | — |  |  | (60.2) |  |  | (60.2) |  |  | — |  |  | (55.3) |  |  | (55.3) |
Foreign property, plant and equipment | 7.1 |  |  | — |  |  | 7.1 |  |  | 7.3 |  |  | — |  |  | 7.3 |
Inventory valuation | — |  |  | (237.8) |  |  | (237.8) |  |  | — |  |  | (230.4) |  |  | (230.4) |
Revenue deferral | 88.6 |  |  | — |  |  | 88.6 |  |  | 95.6 |  |  | — |  |  | 95.6 |
Derivative instruments | — |  |  | — |  |  | — |  |  | 0.3 |  |  | — |  |  | 0.3 |
Lease assets | — |  |  | (261.9) |  |  | (261.9) |  |  | — |  |  | (295.1) |  |  | (295.1) |
Lease liabilities | 284.3 |  |  | — |  |  | 284.3 |  |  | 331.5 |  |  | — |  |  | 331.5 |
Deferred compensation | 7.7 |  |  | — |  |  | 7.7 |  |  | 6.7 |  |  | — |  |  | 6.7 |
Retirement benefit obligations | 1.5 |  |  | — |  |  | 1.5 |  |  | — |  |  | (9.8) |  |  | (9.8) |
Share-based compensation | 8.4 |  |  | — |  |  | 8.4 |  |  | 4.4 |  |  | — |  |  | 4.4 |
Other temporary differences | 42.4 |  |  | — |  |  | 42.4 |  |  | 57.2 |  |  | — |  |  | 57.2 |
Net operating losses and foreign tax credits | 84.3 |  |  | — |  |  | 84.3 |  |  | 56.5 |  |  | — |  |  | 56.5 |
Value of capital losses | 16.9 |  |  | — |  |  | 16.9 |  |  | 13.9 |  |  | — |  |  | 13.9 |
Total gross deferred tax assets (liabilities) | $ | 541.2 |  |  | $ | (636.9) |  |  | $ | (95.7) |  |  | $ | 573.4 |  |  | $ | (632.3) |  |  | $ | (58.9) |
Valuation allowance | (27.9) |  |  | — |  |  | (27.9) |  |  | (83.9) |  |  | — |  |  | (83.9) |
Deferred tax assets (liabilities) | $ | 513.3 |  |  | $ | (636.9) |  |  | $ | (123.6) |  |  | $ | 489.5 |  |  | $ | (632.3) |  |  | $ | (142.8) |
Disclosed as: |  |  |  |  |  |  |  |  |  |  |
Non-current assets |  |  |  |  | $ | 37.3 |  |  |  |  |  |  | $ | 16.4 |
Non-current liabilities |  |  |  |  | (160.9) |  |  |  |  |  |  | (159.2) |
Deferred tax assets (liabilities) |  |  |  |  | $ | (123.6) |  |  |  |  |  |  | $ | (142.8) |
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 2022 |  | Fiscal 2021 |  | Fiscal 2020
Unrecognized tax benefits, beginning of period | $ | 25.4 |  |  | $ | 23.5 |  |  | $ | 18.1 |
Increases related to current year tax positions | 2.0 |  |  | 1.0 |  |  | 2.0 |
Increases related to prior year tax positions | 0.4 |  |  | 3.4 |  |  | 6.0 |
Lapse of statute of limitations | (2.9) |  |  | (2.6) |  |  | (2.6) |
Difference on foreign currency translation | — |  |  | 0.1 |  |  | — |
Unrecognized tax benefits, end of period | $ | 24.9 |  |  | $ | 25.4 |  |  | $ | 23.5 |

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

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(1)(Note 1)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the change in unrecognized tax benefits. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 55 -Paragraph 217 -URI http://asc.fasb.org/extlink&oid=124434304&loc=d3e36027-109320 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=121826272&loc=SL6600010-109319 + Details
Name: | us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration