COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

Legal Proceedings and Loss Contingencies

The Company is involved in legal proceedings and evaluates other loss contingencies primarily related to supplier contract claims and employment matters which may result in liabilities of the Company. Although the Company believes it has valid defenses with respect to these matters, as of December 31, 2023 and March 31, 2024, the Company recorded approximately $80 million and $190 million, respectively, for estimated probable losses related to these matters in “Accrued liabilities” on the Condensed Consolidated Balance Sheets. The increase in the accrued liability is primarily related to liabilities incurred during the three months ended March 31, 2024 with suppliers regarding contract modifications and terminations as part of the Company’s cost of revenue efficiency initiatives recorded within “Cost of revenues” in the Condensed Consolidated Statements of Operations. As of March 31, 2024, although the majority of the accrued liability has been agreed upon with the suppliers, the Company estimates it is reasonably possible that losses in excess of the accrued liability could occur, up to approximately $270 million, or an excess of $80 million over the accrued liability recorded. The Company expects the majority of the matters to be resolved within the next 12 months.