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v3.24.1

Income taxes (Tables) | 12 Months Ended
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Feb. 03, 2024
Income Tax Disclosure [Abstract] |
Schedule of Income before Income Tax, Domestic and Foreign |
(in millions) | Fiscal 2024 |  | Fiscal 2023 |  | Fiscal 2022
Income before income taxes: |  |  |  |  |
– US | $ | 320.5 |  |  | $ | 281.2 |  |  | $ | 665.9 |
– Foreign | 319.3 |  |  | 170.0 |  |  | 218.5 |
Total income before income taxes | $ | 639.8 |  |  | $ | 451.2 |  |  | $ | 884.4 |
Current taxation: |  |  |  |  |
– US | $ | (14.8) |  |  | $ | 157.1 |  |  | $ | 108.1 |
– Foreign | 24.5 |  |  | 16.7 |  |  | 7.6 |
Deferred taxation: |  |  |  |  |
– US | 82.0 |  |  | (70.4) |  |  | 8.4 |
– Foreign | (262.3) |  |  | (28.9) |  |  | (9.6) |
Total income tax expense (benefit) | $ | (170.6) |  |  | $ | 74.5 |  |  | $ | 114.5 |
Schedule of Effective Income Tax Rate Reconciliation | 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 2024 |  | Fiscal 2023 |  | Fiscal 2022
US federal income tax rates | 21.0 | % |  | 21.0 | % |  | 21.0 | %
US state income taxes | 2.7 | % |  | 2.9 | % |  | 3.3 | %
Differences between US federal and foreign statutory income tax rates | 0.4 | % |  | 0.8 | % |  | (0.1) | %
Expenditures permanently disallowable for tax purposes, net of permanent tax benefits | (0.4) | % |  | (1.4) | % |  | — | %
Impact of global reinsurance arrangements | (5.8) | % |  | (8.7) | % |  | (2.2) | %
Impact of global financing arrangements | (1.5) | % |  | (2.2) | % |  | (0.6) | %
Bermuda economic transition adjustment | (41.1) | % |  | — | % |  | — | %
CARES Act | — | % |  | — | % |  | (1.4) | %
Valuation allowance | (0.3) | % |  | — | % |  | (6.5) | %
Other items | (1.7) | % |  | 4.1 | % |  | (0.6) | %
Effective tax rate | (26.7) | % |  | 16.5 | % |  | 12.9 | %
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets (liabilities) consisted of the following:
| February 3, 2024 |  | January 28, 2023
(in millions) | Assets |  | (Liabilities) |  | Total |  | Assets |  | (Liabilities) |  | Total
Intangible assets | $ | — |  |  | $ | (99.6) |  |  | $ | (99.6) |  |  | $ | — |  |  | $ | (100.6) |  |  | $ | (100.6) |
US property, plant and equipment | — |  |  | (37.2) |  |  | (37.2) |  |  | — |  |  | (70.0) |  |  | (70.0) |
Foreign property, plant and equipment | — |  |  | (1.4) |  |  | (1.4) |  |  | 0.7 |  |  | — |  |  | 0.7 |
Inventory valuation | — |  |  | (243.7) |  |  | (243.7) |  |  | — |  |  | (208.1) |  |  | (208.1) |
Revenue deferral | 69.0 |  |  | — |  |  | 69.0 |  |  | 79.3 |  |  | — |  |  | 79.3 |
Lease assets | — |  |  | (225.6) |  |  | (225.6) |  |  | — |  |  | (230.3) |  |  | (230.3) |
Lease liabilities | 249.0 |  |  | — |  |  | 249.0 |  |  | 262.2 |  |  | — |  |  | 262.2 |
Deferred compensation | 9.1 |  |  | — |  |  | 9.1 |  |  | 8.0 |  |  | — |  |  | 8.0 |
Retirement benefit obligations | — |  |  | — |  |  | — |  |  | — |  |  | (0.2) |  |  | (0.2) |
Share-based compensation | 11.0 |  |  | — |  |  | 11.0 |  |  | 8.6 |  |  | — |  |  | 8.6 |
Other temporary differences | 33.4 |  |  | — |  |  | 33.4 |  |  | 95.6 |  |  | — |  |  | 95.6 |
Bermuda economic transition adjustment | 263.3 |  |  | — |  |  | 263.3 |  |  | — |  |  | — |  |  | — |
163(j) interest carryforward | 12.3 |  |  | — |  |  | 12.3 |  |  | 13.8 |  |  | — |  |  | 13.8 |
Net operating losses | 66.0 |  |  | — |  |  | 66.0 |  |  | 65.9 |  |  | — |  |  | 65.9 |
Value of capital losses | 11.5 |  |  | — |  |  | 11.5 |  |  | 13.2 |  |  | — |  |  | 13.2 |
Total gross deferred tax assets (liabilities) | $ | 724.6 |  |  | $ | (607.5) |  |  | $ | 117.1 |  |  | $ | 547.3 |  |  | $ | (609.2) |  |  | $ | (61.9) |
Valuation allowance | (18.3) |  |  | — |  |  | (18.3) |  |  | (19.0) |  |  | — |  |  | (19.0) |
Deferred tax assets (liabilities) | $ | 706.3 |  |  | $ | (607.5) |  |  | $ | 98.8 |  |  | $ | 528.3 |  |  | $ | (609.2) |  |  | $ | (80.9) |
Disclosed as: |  |  |  |  |  |  |  |  |  |  |
Non-current assets |  |  |  |  | $ | 300.5 |  |  |  |  |  |  | $ | 36.7 |
Non-current liabilities |  |  |  |  | (201.7) |  |  |  |  |  |  | (117.6) |
Deferred tax assets (liabilities) |  |  |  |  | $ | 98.8 |  |  |  |  |  |  | $ | (80.9) |
Summary of Valuation Allowance | The following table is a rollforward of the Company’s deferred tax asset valuation allowance:
(in millions) | Fiscal 2024 |  | Fiscal 2023 |  | Fiscal 2022
Beginning balance | $ | 19.0 |  |  | $ | 27.9 |  |  | $ | 83.9 |
Charged (credited) to income tax expense | (2.0) |  |  | — |  |  | (43.8) |
Increases from acquisitions | 1.4 |  |  | 1.9 |  |  | — |
Lapsed due to expiration of benefit | (0.3) |  |  | (9.7) |  |  | (11.9) |
Foreign currency translation | 0.2 |  |  | (1.1) |  |  | (0.3) |
Ending balance | $ | 18.3 |  |  | $ | 19.0 |  |  | $ | 27.9 |
Schedule of Unrecognized Tax Benefits Roll Forward | 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 2024 |  | Fiscal 2023 |  | Fiscal 2022
Unrecognized tax benefits, beginning of period | $ | 85.9 |  |  | $ | 24.9 |  |  | $ | 25.4 |
Increases related to current year tax positions | 1.5 |  |  | 1.6 |  |  | 2.0 |
Increases from acquisitions | — |  |  | 2.3 |  |  | — |
Increases related to prior year tax positions | — |  |  | 59.6 |  |  | 0.4 |
Settlements with tax authorities | (59.6) |  |  | — |  |  | — |
Lapse of statute of limitations | (1.8) |  |  | (2.4) |  |  | (2.9) |
Foreign currency translation | — |  |  | (0.1) |  |  | — |
Unrecognized tax benefits, end of period | $ | 26.0 |  |  | $ | 85.9 |  |  | $ | 24.9 |

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