RALPH LAUREN CORP

We are involved, from time to time, in litigation, other legal claims, and proceedings involving matters associated with or incidental to our business, including, among other things, matters involving credit card fraud, trademark and other intellectual property, licensing, importation and exportation of our products, taxation, unclaimed property, leases, and employee relations. We believe at present that the resolution of currently pending matters will not individually or in the aggregate have a material adverse effect on our consolidated financial statements. However, our 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.

During the fourth quarter of Fiscal 2026, we entered into settlement agreements with Visa, Inc., Mastercard Incorporated, and other named parties to resolve credit card interchange fee litigation matters in which we were a plaintiff. As a result of these settlements, we received $24.2 million of cash proceeds, net of legal fees, which were recognized as gains during the fourth quarter of Fiscal 2026. We donated these proceeds to The Ralph Lauren Corporate Foundation, a non-profit charitable 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 to the accompanying consolidated financial statements.