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OTHER CONSOLIDATED BALANCE SHEET COMPONENTS (CURRENT)
 3 Months Ended
Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
OTHER CONSOLIDATED BALANCE SHEET COMPONENTS (CURRENT) OTHER CONSOLIDATED BALANCE SHEET COMPONENTS (CURRENT)
Other Current Assets
The following table presents the detail of other current assets (in thousands):
  March 31, 2022December 31, 2021
Inventory, net$72,340 $77,058 
Restricted cash109,450 18,778 
Processing costs receivable236,044 228,914 
Prepaid expenses123,306 63,341 
Accounts receivable, net107,200 89,702 
Loans held for investment, net of allowance for loan losses (i)
90,051 91,447 
Other137,807 118,189 
Total$876,198 $687,429 
(i) Refer to Note 7, 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):    
  March 31, 2022December 31, 2021
Accrued expenses$368,739 $254,900 
Accrued royalties61,593 53,616 
Accrued transaction losses (i)53,659 55,167 
Accounts payable123,982 82,173 
Deferred revenue, current52,973 48,462 
Pagantis deferred consideration (ii)43,195 — 
Other230,223 144,991 
Total$934,364 $639,309 
(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.

(ii) On March 9, 2021, prior to acquisition by the Company, Afterpay completed the acquisition of Pagantis SAU and PMT Technology SLA (collectively, "Pagantis"). Pursuant to the acquisition agreement, Afterpay issued a convertible note to the sellers for deferred and contingent consideration. Under the terms of the note, upon a change in control, Afterpay had the option to redeem and convert the convertible note. The settlement amount consists of two components: a deferred consideration portion of €40.3 million that is a fixed contractual amount, and an additional amount that is contingent on the underlying equity value of Pagantis exceeding certain agreed upon thresholds at the settlement date. The Company has commenced discussions with the convertible note holder in relation to settlement of the note, but an agreement as to the value of the note has yet been reached. As of March 31, 2022, the Company determined that based on the underlying value of Pagantis, the contingent consideration had no value. The Company accrued $43.2 million related to the deferred consideration, which is included within other current liabilities.
The following table summarizes the activities of the Company’s reserve for transaction losses (in thousands):
Three Months Ended
March 31,
20222021
Accrued transaction losses, beginning of the period$55,167 $70,557 
Provision for transaction losses20,721 (6,742)
Charge-offs to accrued transaction losses(22,229)(15,193)
Accrued transaction losses, end of the period$53,659 $48,622 

In addition to amounts reflected in the table above, the Company recognized additional provision for transaction losses that were realized and written-off within the same period. The Company recorded $87.3 million and $82.1 million for the three months ended March 31, 2022 and 2021, respectively, for such losses.
OTHER CONSOLIDATED BALANCE SHEET COMPONENTS (NON-CURRENT)
Other Non-Current Assets

The following table presents the detail of other non-current assets (in thousands):
  March 31, 2022December 31, 2021
Investment in non-marketable equity securities (i)$156,231 $81,919 
Investment in bitcoin, net (ii)148,984 149,000 
Restricted cash71,702 71,702 
Other94,437 67,914 
Total$471,354 $370,535 

(i) Investment in non-marketable equity securities represents the Company's investments in equity of non-public entities. The Company also holds a non-marketable common stock warrant in a publicly-traded entity. These investments are measured using the measurement alternative and are therefore carried at cost, less impairment, adjusted for observable price changes from orderly transactions for identical or similar investments of the same issuer. Adjustments are recorded within other expense (income), net on the condensed consolidated statement of operations. During the three months ended March 31, 2022, the Company recorded an unrealized gain of $59.8 million, with a cumulative unrealized gain of $78.8 million as of March 31, 2022, arising from the revaluation of non-marketable investment. Unrealized losses were immaterial as of March 31, 2022.

(ii) The Company had invested $220.0 million in bitcoin as of December 31, 2021, with no additional investments during the three months ended March 31, 2022. Bitcoin is accounted for as an indefinite-lived intangible asset, and thus, is subject to impairment losses if the fair value of bitcoin decreases below the carrying value during the assessed period. Impairment losses cannot be recovered for any subsequent increase in fair value until the sale of the asset.
The Company did not record any impairment charges in the three months ended March 31, 2022 due to the observed market price of bitcoin decreasing below the carrying value during the period. As of March 31, 2022, the fair value of the investment in bitcoin was $365.5 million based on observable market prices which is $216.5 million in excess of the Company's carrying value of $149.0 million.
Other Non-Current Liabilities

The following table presents the detail of other non-current liabilities (in thousands):
  March 31, 2022December 31, 2021
Statutory liabilities (i)$172,003 $117,784 
Other70,714 89,826 
Total$242,717 $207,610 

(i) Statutory liabilities represent loss contingencies that may arise from the Company's interpretation and application of certain guidelines and rules issued by various federal, state, local, and foreign regulatory authorities.