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OTHER CONSOLIDATED BALANCE SHEET COMPONENTS (CURRENT) (Tables)

9 Months Ended

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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