Pensions

Signet has one defined benefit plan for UK based staff (the “UK Plan”), that was closed to new members in 2004. All other pension arrangements consist of defined contribution plans. The net impact of foreign exchange movements on the assets and liabilities of the UK plan in Fiscal 2011 was a loss of $1.7 million. There was an actuarial gain on the UK Plan liabilities of $4.3 million (Fiscal 2010: $17.2 million loss). The fair value of the UK Plan’s assets excluding the impact of foreign exchange movements increased by $30.3 million (Fiscal 2010: $32.7 million increase). There was a retirement benefit asset on the balance sheet of $22.8 million (January 30, 2010: $4.8 million obligation) before a related deferred tax liability of $6.2 million (January 30, 2010: $1.4 million asset). The last triennial actuarial valuation was carried out as of April 5, 2009 and another will be carried out as of April 5, 2012. The valuation is updated at each fiscal year end.

The cash contribution to the UK Plan in Fiscal 2011 was $14.0 million (Fiscal 2010: $12.8 million). Signet has committed to contributing $9.6 million each year for the next five years in addition to the ongoing service contributions. As a result, Signet expects to contribute $14.4 million into the UK plan in Fiscal 2012. If the deficit increases or decreases significantly, then this contribution might increase or decrease accordingly.