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OTHER CONSOLIDATED BALANCE SHEET COMPONENTS (CURRENT) (Tables) | 9 Months Ended
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Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Other Current Assets | The following table presents the detail of other current assets (in thousands):
| September 30, 2021 |  | December 31, 2020
Loans held for investment, net of allowance for loan losses (i) | $ | 79,482 |  |  | $ | — |
Inventory, net | 73,413 |  |  | 61,129 |
Restricted cash | 14,420 |  |  | 30,279 |
Processing costs receivable | 215,886 |  |  | 148,606 |
Prepaid expenses | 70,591 |  |  | 34,279 |
Accounts receivable, net | 78,401 |  |  | 41,960 |
Other | 77,340 |  |  | 66,814 |
Total | $ | 609,533 |  |  | $ | 383,067 |
(i) In April 2021, the Company began originating loans in the U.S. through its wholly-owned subsidiary bank, Square Financial Services, Inc., and discontinued a prior arrangement with an industrial bank partner. Refer to Note 6, Loans Held for Investment for further details.
Accrued Expenses and Other Current Liabilities | The following table presents the detail of accrued expenses and other current liabilities (in thousands):
| September 30, 2021 |  | December 31, 2020
Accrued expenses | $ | 231,853 |  |  | $ | 126,710 |
Square Payroll payable (i) | 68,959 |  |  | 16,990 |
Accrued royalties | 51,747 |  |  | — |
Accrued transaction losses (ii) | 47,737 |  |  | 70,557 |
Accounts payable | 94,215 |  |  | 47,089 |
Customer deposits | 40,092 |  |  | — |
Deferred revenue, current | 51,655 |  |  | 44,908 |
Current portion of long-term debt | 4,637 |  |  | — |
Other | 63,600 |  |  | 54,596 |
Total | $ | 654,495 |  |  | $ | 360,850 |
(i) Square Payroll payable represents amounts received from Square Payroll product customers that will be utilized to settle the customers' employee payroll and related obligations. (ii) The Company is exposed to potential credit losses related to transactions processed by sellers that are subsequently subject to chargebacks when the Company is unable to collect from the sellers primarily due to insolvency. Generally, the Company estimates the potential loss rates based on historical experience that is continuously adjusted for new information and incorporates, where applicable, reasonable and supportable forecasts about future expectations. The following table summarizes the activities of the Company’s reserve for transaction losses (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2021 |  | 2020 |  | 2021 |  | 2020
Accrued transaction losses, beginning of the period | $ | 48,480 |  |  | $ | 109,061 |  |  | $ | 70,557 |  |  | $ | 34,771 |
Provision for transaction losses | 17,364 |  |  | (4,549) |  |  | 38,406 |  |  | 107,524 |
Charge-offs to accrued transaction losses | (18,107) |  |  | (17,577) |  |  | (61,226) |  |  | (55,360) |
Accrued transaction losses, end of the period | $ | 47,737 |  |  | $ | 86,935 |  |  | $ | 47,737 |  |  | $ | 86,935 |
Reserve for Transaction Losses | The following table summarizes the activities of the Company’s reserve for transaction losses (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2021 |  | 2020 |  | 2021 |  | 2020
Accrued transaction losses, beginning of the period | $ | 48,480 |  |  | $ | 109,061 |  |  | $ | 70,557 |  |  | $ | 34,771 |
Provision for transaction losses | 17,364 |  |  | (4,549) |  |  | 38,406 |  |  | 107,524 |
Charge-offs to accrued transaction losses | (18,107) |  |  | (17,577) |  |  | (61,226) |  |  | (55,360) |
Accrued transaction losses, end of the period | $ | 47,737 |  |  | $ | 86,935 |  |  | $ | 47,737 |  |  | $ | 86,935 |

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