Item 1. Legal Proceedings
ITEM 1. Legal Proceedings
We are subject to various claims, complaints and legal actions that arise from time to time in the normal course of business. We accrue for contingencies when we believe that a loss is probable and that we can reasonably estimate the amount of any such loss. There can be no assurance that existing or future legal proceedings arising in the ordinary course of business or otherwise will not have a material adverse effect on our business, consolidated financial position, results of operations or cash flows.
In October 2021, we held settlement discussions related to an existing patent infringement lawsuit. Pursuant to such discussions, we may enter into an agreement that provides for the settlement and dismissal of the patent lawsuit and a mutual covenant not to sue for a defined duration of time. As a result, we have determined that a loss in connection with such lawsuit is now probable. We accrued $5 million as a loss contingency in the quarter ended September 30, 2021 and the associated charge was recorded against revenue in the income statement. Litigation loss contingency accruals associated with other outstanding cases were not material as of September 30, 2021 and December 31, 2020.
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