OTHER CONSOLIDATED BALANCE SHEET COMPONENTS (CURRENT) (Tables)

3 Months Ended

Mar. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Other Current Assets

The following table presents the detail of other current assets (in thousands):

	March 31, 2020		December 31, 2019
Inventory, net	$	54,719	$	47,683
Restricted cash	34,315		38,873
Processing costs receivable	84,045		67,281
Prepaid expenses	31,433		22,758
Accounts receivable, net	31,515		33,863
Other	42,643		39,951
Total	$	278,670	$	250,409

Schedule of Accrued Expenses and Other Current Liabilities

The following table presents the detail of accrued expenses and other current liabilities (in thousands): 

	March 31, 2020		December 31, 2019
Accrued expenses	$	126,911	$	128,387
Accrued transaction losses (i)	96,661		34,771
Accounts payable	29,831		42,116
Deferred revenue, current	40,392		38,104
Square Payroll payable (ii)	29,618		27,969
Other	69,321		26,494
Total	$	392,734	$	297,841

⁽ⁱ⁾ 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. In estimating the accrued transaction losses as of March 31, 2020, the Company has revised its estimates to reflect expected increased chargebacks from non-delivery of goods and services as well as increased failure rates of its sellers due to the COVID-19 outbreak. Additionally, the Company has also incorporated market related data to credit losses for similar historical periods of recessionary economic conditions and uncertainty in developing such estimates and assumptions. Given that substantially all the chargebacks are reported within a short time period after the transaction is processed, a reversion method was not considered to be necessary.

The following table summarizes the activities of the Company’s reserve for transaction losses (in thousands):

	Three Months Ended March 31,
	2020		2019
Accrued transaction losses, beginning of the period	$	34,771	$	33,682
Provision for transaction losses	79,303		19,808
Charge-offs to accrued transaction losses	(17,413)		(17,443)
Accrued transaction losses, end of the period	$	96,661	$	36,047

⁽ⁱⁱ⁾ Square Payroll payable represents amounts received from Square Payroll product customers that will be utilized to settle the customers' employee payroll and related obligations.

Schedule of Reserve for Transaction Losses

The following table summarizes the activities of the Company’s reserve for transaction losses (in thousands):

	Three Months Ended March 31,
	2020		2019
Accrued transaction losses, beginning of the period	$	34,771	$	33,682
Provision for transaction losses	79,303		19,808
Charge-offs to accrued transaction losses	(17,413)		(17,443)
Accrued transaction losses, end of the period	$	96,661	$	36,047