COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Legal Proceedings

Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties, and other sources are recorded when it is probable that a liability has been incurred and the related amount can be reasonably estimated. If an amount within the range of loss appears at the time to be a better estimate than any other amount within the range, the liability is recorded at that amount. When no amount within the range is a better estimate than any other amount, however; the liability is recorded at the minimum amount in the range. If a loss is reasonably possible and the amount of the loss or range of loss cannot be reasonably estimated, the Company discloses the nature of the possible loss and states that such an estimate cannot be made. Legal costs related to contingencies are recognized as expenses as they are incurred.

The Company is involved in legal proceedings and while it is not possible to predict the outcome of these matters with certainty, the Company has developed an initial estimate of the range of outcomes related to unsettled obligations, primarily related to some supplier contract terminations, ranging from $16 million to $20 million. As of December 31, 2020 and 2021, the Company recorded an estimated liability for unsettled obligations of $21 million and $17 million, respectively, within “Accrued liabilities” on the Consolidated Balance Sheets. The majority of the matters for which an estimated obligation has been recorded are expected to be settled during the year ended December 31, 2022.

Unconditional Purchase Obligations

During the year ended December 31, 2021, the Company entered into unrecognized commitments that require the future purchase of goods or services (“unconditional purchase obligations”). The Company’s unconditional purchase obligations primarily relate to near-term inventory purchase requirements and vary by vendor and payments for hosting services from Amazon (refer to Note 10 "Related Party Transactions" for further information). As of December 31, 2021, the Company was obligated to make inventory purchases of approximately $63 million during the next year. Future payments under unconditional purchase obligations having a remaining term in excess of one year as of December 31, 2021 are as follows (in millions):


	Future Payments
2022	$	31
2023	19
2024 and thereafter	8
Total	$	58