Commitments and Contingencies
Employee Agreements
The Company has employment agreements with certain executives in the normal course of business which provide for compensation and certain other benefits. These agreements also provide for severance payments under certain circumstances.
Other Commitments
Other off-balance sheet firm commitments amounted to $1.579 billion as of March 28, 2026, including inventory purchase commitments of $808.3 million, lease commitments related to lease agreements for which the related lease terms have not yet commenced of $147.5 million, outstanding letters of credit of $10.4 million, interest payments related to the Company's debt of $262.1 million, and various other commitments of $350.9 million, primarily comprised of the Company's legally-binding obligations related to sponsorship, licensing, and other marketing and advertising agreements, information technology-related service agreements, and pension-related obligations.
Other Matters
The Company is involved, from time to time, in litigation, other legal claims, and proceedings involving matters associated with or incidental to its business, including, among other things, matters involving credit card fraud, trademark and other intellectual property, licensing, importation and exportation of its products, taxation, unclaimed property, leases, and employee relations. The Company believes at present that the resolution of currently pending matters will not individually or in the aggregate have a material adverse effect on its consolidated financial statements. However, the Company's assessment of any current litigation or other legal claims could potentially change in light of the discovery of facts not presently known or determinations by judges, juries, or other finders of fact which are not in accord with management's evaluation of the possible liability or outcome of such litigation or claims.
In the normal course of business, the Company may enter into certain guarantees or other agreements that provide general indemnifications. The Company has not made any significant indemnification payments under such agreements in the past and does not currently anticipate incurring any material indemnification payments.
Interchange Case Settlements
During the fourth quarter of Fiscal 2026, the Company entered into settlement agreements with Visa, Inc., Mastercard Incorporated, and other named parties to resolve credit card interchange fee litigation matters in which the Company was a plaintiff. As a result of these settlements, the Company received $24.2 million of cash proceeds, net of legal fees, which were recognized as gains during the fourth quarter of Fiscal 2026. The Company donated these proceeds to The Ralph Lauren Corporate Foundation during the fourth quarter of Fiscal 2026. The settlement gains and related offsetting donation expense were recorded within restructuring and other charges, net in the consolidated statements of operations. See Note 8 for further discussion of the settlements.