GOODWILL

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL

GOODWILL

Goodwill is recorded when the consideration paid for an acquisition of a business exceeds the fair value of identifiable net tangible and intangible assets acquired.

The change in carrying value of goodwill in the period was as follows (in thousands):

Balance at December 31, 2021	$	519,276
Acquisitions	11,688,990
Foreign currency translation adjustments	220,664
Balance at March 31, 2022	$	12,428,930

The Company performs an annual goodwill impairment test on December 31 and more frequently if events and circumstances indicate that the asset might be impaired.

The Company has two operating and reportable segments, which are Square and Cash App (defined further in Note 20, Segment and Geographical Information). Goodwill arising from the acquisition of Afterpay has been equally allocated to Square and Cash App as management expects that the BNPL platform will contribute equally to each of these segments.

The change in carrying value of goodwill allocated to the reportable segments in the period was as follows (in thousands):

	Cash App		Square		Corporate and Other		Total
Balance at December 31, 2021	$	128,334	$	193,057	$	197,885	$	519,276
Acquisitions	5,844,495		5,844,495		—		11,688,990
Foreign currency translation adjustments	110,253		110,411		—		220,664
Balance at March 31, 2022	$	6,083,082	$	6,147,963	$	197,885	$	12,428,930