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Income taxes (Tables)

12 Months Ended

Jan. 28, 2023

Income Tax Disclosure [Abstract]

Schedule of Tax Expense by Jurisdiction

(in millions)			Fiscal 2023						Fiscal 2022						Fiscal 2021
Income (loss) before income taxes:
– US			$	281.2					$	665.9					$	(173.4)
– Foreign			170.0						218.5						83.7
Total income (loss) before income taxes			$	451.2					$	884.4					$	(89.7)
Current taxation:
– US			$	157.1					$	108.1					$	(222.2)
– Foreign			16.7						7.6						0.7
Deferred taxation:
– US			(70.4)						8.4						158.4
– Foreign			(28.9)						(9.6)						(11.4)
Total income tax expense (benefit)			$	74.5					$	114.5					$	(74.5)

Schedule of 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 2023						Fiscal 2022						Fiscal 2021
US federal income tax rates			21.0		%				21.0		%				21.0		%
US state income taxes			2.9		%				3.3		%				4.1		%
Differences between US federal and foreign statutory income tax rates			0.8		%				(0.1)		%				0.1		%
Expenditures permanently disallowable for tax purposes, net of permanent tax benefits			(1.4)		%				—		%				(4.7)		%
Impact of global reinsurance arrangements			(8.7)		%				(2.2)		%				14.1		%
Impact of global financing arrangements			(2.2)		%				(0.6)		%				—		%
Impairment of goodwill			—		%				—		%				(2.4)		%
CARES Act			—		%				(1.4)		%				111.9		%
Valuation allowance			—		%				(6.5)		%				(55.5)		%
Other items			4.1		%				(0.6)		%				(5.5)		%
Effective tax rate			16.5		%				12.9		%				83.1		%

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets (liabilities) consisted of the following:

			January 28, 2023																		January 29, 2022
(in millions)			Assets						(Liabilities)						Total						Assets						(Liabilities)						Total
Intangible assets			$	—					$	(100.6)					$	(100.6)					$	—					$	(77.0)					$	(77.0)
US property, plant and equipment			—						(70.0)						(70.0)						—						(60.2)						(60.2)
Foreign property, plant and equipment			0.7						—						0.7						7.1						—						7.1
Inventory valuation			—						(208.1)						(208.1)						—						(237.8)						(237.8)
Revenue deferral			79.3						—						79.3						88.6						—						88.6
Lease assets			—						(230.3)						(230.3)						—						(261.9)						(261.9)
Lease liabilities			262.2						—						262.2						284.3						—						284.3
Deferred compensation			8.0						—						8.0						7.7						—						7.7
Retirement benefit obligations			—						(0.2)						(0.2)						1.5						—						1.5
Share-based compensation			8.6						—						8.6						8.4						—						8.4
Other temporary differences			95.6						—						95.6						42.4						—						42.4
163(j) interest carryforward			13.8						—						13.8						—						—						—
Net operating losses and foreign tax credits			65.9						—						65.9						84.3						—						84.3
Value of capital losses			13.2						—						13.2						16.9						—						16.9
Total gross deferred tax assets (liabilities)			$	547.3					$	(609.2)					$	(61.9)					$	541.2					$	(636.9)					$	(95.7)
Valuation allowance			(19.0)						—						(19.0)						(27.9)						—						(27.9)
Deferred tax assets (liabilities)			$	528.3					$	(609.2)					$	(80.9)					$	513.3					$	(636.9)					$	(123.6)
Disclosed as:
Non-current assets															$	36.7																	$	37.3
Non-current liabilities															(117.6)																		(160.9)
Deferred tax assets (liabilities)															$	(80.9)																	$	(123.6)

Summary of Valuation Allowance

The following table is a rollforward of the Company’s deferred tax asset valuation allowance:

(in millions)			Fiscal 2023						Fiscal 2022						Fiscal 2021
Beginning balance			$	27.9					$	83.9					$	38.4
Charged (credited) to income tax expense			—						(43.8)						45.1
Increases from acquisitions			1.9						—						—
Lapsed due to expiration of benefit			(9.7)						(11.9)						—
Foreign currency translation			(1.1)						(0.3)						0.4
Ending balance			$	19.0					$	27.9					$	83.9

Schedule 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 2023						Fiscal 2022						Fiscal 2021
Unrecognized tax benefits, beginning of period			$	24.9					$	25.4					$	23.5
Increases related to current year tax positions			1.6						2.0						1.0
Increases from acquisitions			2.3						—						—
Increases related to prior year tax positions			59.6						0.4						3.4
Lapse of statute of limitations			(2.4)						(2.9)						(2.6)
Foreign currency translation			(0.1)						—						0.1
Unrecognized tax benefits, end of period			$	85.9					$	24.9					$	25.4

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