Designer Brands Inc.DBI

Designer Brands Inc. Commitments Disclosure

10-KFiled Mar 30, 20262 min read
COMMITMENTS AND CONTINGENCIES
LEGAL PROCEEDINGS

We are involved in various legal proceedings that are incidental to the conduct of our business. Although it is not possible to predict with certainty the eventual outcome of any litigation, we believe the amount of any potential liability with respect to current legal proceedings will not be material to our results of operations or financial condition. However, legal proceedings are inherently uncertain. As a result, the outcome of a particular matter or a combination of matters may be material to our results of operations for a particular period. We are also involved in certain legal matters in which we have agreed to settlement terms with the plaintiffs, which remain subject to court approval, and such matters are fully covered under our insurance policies and accordingly all associated legal fees and settlement costs will be paid by the insurer. As a result, we have recorded accrued expenses for the estimated settlement obligations with corresponding receivables on the consolidated balance sheets. As additional information becomes available, we will assess any potential liabilities related to pending litigation and revise the estimates as needed.

CONTRACTUAL OBLIGATIONS

As of January 31, 2026, we had entered into various noncancelable purchase and service agreements, including agreements with remaining terms in excess of one year and construction commitments for capital items to be purchased for projects that were under construction or for which a lease has been signed. In addition, we have license agreements that allow us to use brands owned by third parties, including a license agreement with our related party ABG-Camuto, that have guaranteed minimum royalty payments.
As of January 31, 2026, our noncancelable purchase obligations and future guaranteed minimum royalty payments are as follows:
Noncancelable Purchase ObligationsGuaranteed Minimum Royalties
(in thousands)Unrelated PartiesRelated PartiesTotal
2026$9,678 $14,184 $19,650 $33,834 
20272,879 14,184 19,650 33,834 
20281,520 14,184 19,650 33,834 
$14,077 $42,552 $58,950 $101,502 

Historical Timeline

Fiscal YearFiled
2026Mar 30, 2026Showing above
2025Mar 24, 2025
2024Mar 25, 2024
2023Mar 16, 2023
2022Mar 21, 2022
2021Mar 22, 2021
2020May 1, 2020
2019Mar 26, 2019
2018Mar 23, 2018
2017Mar 23, 2017
2016Mar 24, 2016

About Commitments Disclosures

Commitments and contingencies disclosures catalog a company's off-balance-sheet obligations and legal exposures — purchase commitments, guarantee arrangements, pending litigation, and regulatory proceedings. These items represent potential future cash outflows that may not appear as liabilities on the balance sheet until they become probable and estimable.

Key signals: litigation reserves and disclosed loss ranges quantify management's estimate of legal exposure, but unquantified "reasonably possible" losses often represent the larger risk. Watch for changes in language around pending cases — shifts from "remote" to "reasonably possible" or increases in estimated loss ranges signal deteriorating outcomes. Unconditional purchase obligations and take-or-pay contracts create fixed cost structures that reduce operational flexibility. Guarantee arrangements for subsidiaries or joint ventures can create cascading obligations. Compare the total commitment schedule against projected free cash flow to assess whether the company can meet its obligations without additional financing.

Other Available Disclosures

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