BLOCK, INC., 10-K filed on 2/24/2022
Annual Report
v3.22.0.1
Cover Page - USD ($)
$ in Billions
 12 Months Ended
Dec. 31, 2021
Feb. 18, 2022
Jun. 30, 2021
Class of Stock [Line Items]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2021    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 001-37622    
Entity Registrant Name BLOCK, INC.    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 80-0429876    
City Area Code 415    
Local Phone Number 375-3176    
Title of 12(b) Security Class A Common Stock, $0.0000001 par value per share    
Trading Symbol SQ    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Entity Shell Company false    
Entity Public Float     $ 95.2
Documents Incorporated by Reference Portions of the registrant’s Definitive Proxy Statement relating to the Annual Meeting of Stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. Such Definitive Proxy Statement will be filed with the Securities and Exchange Commission within 120 days after the end of the registrant’s fiscal year ended December 31, 2021.    
Entity Central Index Key 0001512673    
Document Fiscal Year Focus 2021    
Document Fiscal Period Focus FY    
Amendment Flag false    
Class A      
Class of Stock [Line Items]      
Entity Common Stock, Shares Outstanding   518,361,474  
Class B      
Class of Stock [Line Items]      
Entity Common Stock, Shares Outstanding   61,696,578  
v3.22.0.1
Audit Information
 12 Months Ended
Dec. 31, 2021
Audit Information [Abstract]  
Auditor Name Ernst & Young LLP
Auditor Location San Francisco, California
Auditor Firm ID 42
v3.22.0.1
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Current assets:    
Cash and cash equivalents $ 4,443,669 $ 3,158,058
Investments in short-term debt securities 869,283 695,112
Settlements receivable 1,171,612 1,024,895
Customer funds 2,830,995 2,037,832
Loans held for sale 517,940 462,665
Other current assets 687,429 383,067
Total current assets 10,520,928 7,761,629
Property and equipment, net 282,140 233,520
Goodwill 519,276 316,701
Acquired intangible assets, net 257,049 137,612
Investments in long-term debt securities 1,526,430 463,950
Operating lease right-of-use assets 449,406 456,888
Other non-current assets 370,535 499,250
Total assets 13,925,764 9,869,550
Current liabilities:    
Customers payable 3,979,624 3,009,051
Settlements payable 254,611 239,362
Accrued expenses and other current liabilities 639,309 360,850
Operating lease liabilities, current 64,027 52,747
PPP Liquidity Facility advances 497,533 464,094
Total current liabilities 5,435,104 4,126,104
Long-term debt 4,559,208 2,586,924
Operating lease liabilities, non-current 395,017 389,662
Other non-current liabilities 222,846 85,291
Total liabilities 10,612,175 7,187,981
Commitments and contingencies (Note 18)
Stockholders’ equity:    
Preferred stock, $0.0000001 par value: 100,000,000 shares authorized at December 31, 2021 and December 31, 2020. None issued and outstanding at December 31, 2021 and December 31, 2020. 0 0
Additional paid-in capital 3,317,255 2,955,464
Accumulated other comprehensive income (16,435) 23,328
Accumulated deficit (27,965) (297,223)
Total stockholders’ equity attributable to common stockholders 3,272,855 2,681,569
Noncontrolling interests 40,734 0
Total stockholders’ equity 3,313,589 2,681,569
Total liabilities and stockholders’ equity 13,925,764 9,869,550
Class A    
Stockholders’ equity:    
Common stock 0 0
Class B    
Stockholders’ equity:    
Common stock $ 0 $ 0
v3.22.0.1
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares
Dec. 31, 2021
Dec. 31, 2020
Class of Stock [Line Items]    
Preferred stock, par value (in USD per share) $ 0.0000001 $ 0.0000001
Preferred stock, authorized (in shares) 100,000,000 100,000,000
Preferred stock, issued (in shares) 0 0
Preferred stock, outstanding (in shares) 0 0
Class A    
Class of Stock [Line Items]    
Common stock, par value (in USD per share) $ 0.0000001 $ 0.0000001
Common stock, authorized (in shares) 1,000,000,000 1,000,000,000
Common stock, issued (in shares) 403,237,209 390,187,079
Common stock, outstanding (in shares) 403,237,209 390,187,079
Class B    
Class of Stock [Line Items]    
Common stock, par value (in USD per share) $ 0.0000001 $ 0.0000001
Common stock, authorized (in shares) 500,000,000 500,000,000
Common stock, issued (in shares) 61,706,578 65,997,697
Common stock, outstanding (in shares) 61,706,578 65,997,697
v3.22.0.1
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Revenue:      
Revenue $ 17,661,203 $ 9,497,578 $ 4,713,500
Cost of Revenue [Abstract]      
Total cost of revenue 13,241,380 6,764,169 2,823,815
Gross profit 4,419,823 2,733,409 1,889,685
Operating expenses:      
Product development 1,399,079 885,681 674,165
Sales and marketing 1,617,189 1,109,670 625,126
General and administrative 983,326 579,203 436,878
Transaction and loan losses 187,991 177,670 126,959
Bitcoin impairment losses 71,126 0 0
Total operating expenses 4,258,711 2,752,224 1,863,128
Operating income (loss) 161,112 (18,815) 26,557
Gain on sale of asset group 0 0 (373,445)
Interest expense, net 33,124 56,943 21,516
Other expense (income), net (29,474) (291,725) 273
Income before income tax 157,462 215,967 378,213
Provision (benefit) for income taxes (1,364) 2,862 2,767
Net income 158,826 213,105 375,446
Less: Net loss attributable to noncontrolling interests (7,458) 0 0
Net income attributable to common stockholders $ 166,284 $ 213,105 $ 375,446
Net income per share attributable to common stockholders:      
Basic (in USD per share) $ 0.36 $ 0.48 $ 0.88
Diluted (in USD per share) $ 0.33 $ 0.44 $ 0.81
Weighted-average shares used to compute net income per share attributable to common stockholders:      
Basic (in shares) 458,432 443,126 424,999
Diluted (in shares) 501,779 482,167 466,076
Transaction-based revenue      
Revenue:      
Revenue $ 4,793,146 $ 3,294,978 $ 3,081,074
Cost of Revenue [Abstract]      
Cost of revenue 2,729,442 1,916,644 1,938,534
Subscription and services-based revenue      
Revenue:      
Revenue 2,709,731 1,539,403 1,031,456
Cost of Revenue [Abstract]      
Cost of revenue 495,761 228,649 238,320
Hardware revenue      
Revenue:      
Revenue 145,679 91,654 84,505
Cost of Revenue [Abstract]      
Cost of revenue 221,185 144,342 138,722
Bitcoin revenue      
Revenue:      
Revenue 10,012,647 4,571,543 516,465
Cost of Revenue [Abstract]      
Cost of revenue $ 9,794,992 $ 4,474,534 $ 508,239
v3.22.0.1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Statement of Comprehensive Income [Abstract]      
Net income $ 158,826 $ 213,105 $ 375,446
Net foreign currency translation adjustments (24,667) 20,439 1,879
Net unrealized gain on revaluation of intercompany loans 0 0 75
Net unrealized gain (loss) on marketable debt securities (15,096) 1,260 5,728
Total comprehensive income $ 119,063 $ 234,804 $ 383,128
v3.22.0.1
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)
$ in Thousands
Total
2027 Convertible Notes
2026 Convertible Notes
2025 Convertible Notes
Cumulative Effect, Period of Adoption, Adjustment
Class A and B common stock
Additional paid-in capital
Additional paid-in capital
2027 Convertible Notes
Additional paid-in capital
2026 Convertible Notes
Additional paid-in capital
2025 Convertible Notes
Additional paid-in capital
Cumulative Effect, Period of Adoption, Adjustment
Accumulated other comprehensive income (loss)
Accumulated deficit
Accumulated deficit
Cumulative Effect, Period of Adoption, Adjustment
Noncontrolling interests
Beginning balance (in shares) at Dec. 31, 2018           417,048,006                  
Beginning balance at Dec. 31, 2018 $ 1,120,501         $ 0 $ 2,012,328         $ (6,053) $ (885,774)   $ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]                              
Net income (loss) 375,446                       375,446    
Shares issued in connection with employee stock plans (in shares)           19,097,950                  
Shares issued in connection with employee stock plans 118,550           118,550                
Change in other comprehensive loss 7,682                     7,682      
Share-based compensation 306,201           306,201                
Tax withholding related to vesting of restricted stock units (in shares)           (3,077,807)                  
Tax withholding related to vesting of restricted stock units (212,264)           (212,264)                
Issuance of common stock in conjunction with the conversion of convertible of notes (in shares)           127                  
Issuance of common stock in conjunction with the conversion of convertible notes $ 3           3                
Exercise of bond hedges in conjunction with the conversion of convertible notes (in shares)           (250,763)                  
Recovery of common stock in connection with indemnification settlement agreement (in shares) (20,793)         (20,793)                  
Recovery of common stock in connection with indemnification settlement agreement $ (1,069)           (1,069)                
Ending balance (in shares) at Dec. 31, 2019           432,796,720                  
Ending balance at Dec. 31, 2019 1,715,050         $ 0 2,223,749         1,629 (510,328)   0
Increase (Decrease) in Stockholders' Equity [Roll Forward]                              
Net income (loss) 213,105                       213,105    
Shares issued in connection with employee stock plans (in shares)           19,013,638                  
Shares issued in connection with employee stock plans 161,984           161,984                
Issuance of common stock in connection with business combination (shares)           607,974                  
Issuance of common stock in connection with business combination 35,319           35,319                
Change in other comprehensive loss 21,699                     21,699      
Share-based compensation 411,673           411,673                
Tax withholding related to vesting of restricted stock units (in shares)           (2,852,127)                  
Tax withholding related to vesting of restricted stock units (314,019)           (314,019)                
Conversion feature of convertible senior notes, net of allocated costs   $ 109,207 $ 85,594 $ 152,258       $ 109,207 $ 85,594 $ 152,258          
Purchase of bond hedges in conjunction with issuance of convertible senior notes   (104,305) (84,640) (149,200)       (104,305) (84,640) (149,200)          
Sale of warrants in conjunction with issuance of convertible senior notes   $ 68,022 $ 64,573 $ 99,500       $ 68,022 $ 64,573 $ 99,500          
Issuance of common stock in conjunction with the conversion of convertible of notes (in shares)           8,853,484                  
Issuance of common stock in conjunction with the conversion of convertible notes $ 195,749           195,749                
Exercise of bond hedges in conjunction with the conversion of convertible notes (in shares)           (2,234,913)                  
Recovery of common stock in connection with indemnification settlement agreement (in shares) 0                            
Ending balance (in shares) at Dec. 31, 2020           456,184,776                  
Ending balance at Dec. 31, 2020 $ 2,681,569       $ (399,733) $ 0 2,955,464       $ (502,707) 23,328 (297,223) $ 102,974 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]                              
Accounting Standards Update [Extensible Enumeration] Accounting Standards Update 2020-06                            
Net income (loss) $ 158,826                       166,284   (7,458)
Shares issued in connection with employee stock plans (in shares)           11,975,907                  
Shares issued in connection with employee stock plans 126,829           126,829                
Issuance of common stock in connection with business combination (shares)           118,443                  
Issuance of common stock in connection with business combination 28,735           28,735                
Change in other comprehensive loss (39,763)                     (39,763)      
Share-based compensation 623,067           623,067                
Tax withholding related to vesting of restricted stock units (in shares)           (1,403,146)                  
Tax withholding related to vesting of restricted stock units (323,012)           (323,012)                
Issuance of common stock in conjunction with the conversion of convertible of notes (in shares)           5,514,727                  
Issuance of common stock in conjunction with the conversion of convertible notes $ 408,879           408,879                
Exercise of bond hedges in conjunction with the conversion of convertible notes (in shares)           (7,446,920)                  
Recovery of common stock in connection with indemnification settlement agreement (in shares) 0                            
Noncontrolling interests in connection with business combination $ 48,192                           48,192
Ending balance (in shares) at Dec. 31, 2021           464,943,787                  
Ending balance at Dec. 31, 2021 $ 3,313,589         $ 0 $ 3,317,255         $ (16,435) $ (27,965)   $ 40,734
v3.22.0.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Cash flows from operating activities:      
Net income (loss) $ 158,826 $ 213,105 $ 375,446
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization 134,757 84,212 75,598
Non-cash interest and other 31,104 76,129 33,478
Loss on extinguishment of long-term debt 0 6,651 0
Non-cash lease expense 83,137 70,253 29,696
Share-based compensation 608,040 397,800 297,863
Gain on sale of asset group 0 0 (373,445)
Loss (gain) on revaluation of equity investments (35,492) (295,297) 12,326
Transaction and loan losses 187,991 177,670 126,959
Bitcoin impairment losses 71,126 0 0
Change in deferred income taxes (10,435) (8,016) (1,376)
Changes in operating assets and liabilities:      
Settlements receivable (346,217) (547,484) (326,596)
Purchases and originations of loans (3,227,172) (1,837,137) (2,266,738)
Sales, principal payments, and forgiveness of loans 3,067,344 1,505,406 2,168,682
Customers payable 171,555 371,598 181,520
Settlements payable 15,249 143,528 41,697
Other assets and liabilities (61,983) (185,308) (47,480)
Net cash provided by operating activities 847,830 173,110 327,630
Cash flows from investing activities:      
Purchase of marketable debt securities (2,714,560) (1,322,362) (992,583)
Proceeds from maturities of marketable debt securities 831,019 607,134 430,888
Proceeds from sale of marketable debt securities 617,097 585,427 548,619
Purchase of marketable debt securities from customer funds (488,851) (642,252) (311,499)
Proceeds from maturities of marketable debt securities from customer funds 505,501 382,887 158,055
Proceeds from sale of marketable debt securities from customer funds 35,071 51,430 17,493
Purchase of property and equipment (134,320) (138,402) (62,498)
Purchase of bitcoin investments (170,000) (50,000) 0
Purchase of other investments (48,510) (1,277) (15,250)
Proceeds from sale of equity investments 420,644 0 33,016
Proceeds from sale of asset group 0 0 309,324
Business combinations, net of cash acquired (163,970) (79,221) (20,372)
Net cash provided by (used in) investing activities (1,310,879) (606,636) 95,193
Cash flows from financing activities:      
Proceeds from issuance of convertible senior notes, net 0 2,116,544 0
Purchase of convertible senior note hedges 0 (338,145) 0
Proceeds from issuance of warrants 0 232,095 0
Proceeds from issuance of senior unsecured notes, net 1,971,828 0 0
Proceeds from PPP Liquidity Facility advances 681,539 464,094 0
Repayments of PPP Liquidity Facility advances (648,100) 0 0
Proceeds from the exercise of stock options and purchases under the employee stock purchase plan 126,719 161,985 118,514
Payments for tax withholding related to vesting of restricted stock units (323,011) (314,019) (212,264)
Net increase in interest-bearing deposits 59,844 0 0
Other financing activities (9,948) (7,359) (5,124)
Change in customer funds, restricted from use in the Company's operations 793,163 1,361,540 342,275
Net cash flows from financing available for Company operations 2,652,034 3,676,735 243,401
Effect of foreign exchange rate on cash and cash equivalents (7,066) 12,995 3,841
Net increase in cash, cash equivalents, restricted cash and customer funds 2,181,919 3,256,204 670,065
Cash, cash equivalents, restricted cash and customer funds, beginning of the year 4,793,171 1,536,967 866,902
Cash, cash equivalents, restricted cash and customer funds, end of the year 6,975,090 4,793,171 1,536,967
Reconciliation of cash, cash equivalents, restricted cash and customer funds:      
Cash and cash equivalents 4,443,669 3,158,058 1,047,118
Short-term restricted cash 18,778 30,279 38,873
Long-term restricted cash 71,702 13,526 12,715
Customer funds cash and cash equivalents 2,440,941 1,591,308 438,261
Total $ 6,975,090 $ 4,793,171 $ 1,536,967
v3.22.0.1
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 12 Months Ended
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Business

On December 10, 2021, Square, Inc. changed its name to Block, Inc. In conjunction with this name change, the Seller business and reportable segment was renamed “Square”. Block, Inc. (together with its subsidiaries, "Block" or the "Company") creates tools that empower businesses, sellers and individuals to participate in the economy. Square enables sellers to accept card payments and also provides reporting and analytics, and next-day settlement. Square’s point-of-sale software and other business services help sellers manage inventory, locations, and employees; access financing; engage buyers; build a website or online store; and grow sales. Cash App is an easy way for people to store, send, receive, spend, and invest money.

On March 1, 2021, Square Financial Services, Inc. ("Square Financial Services"), a wholly-owned subsidiary of the Company, began its banking operations after its industrial loan company charter was approved by the Federal Deposit Insurance Corporation ("FDIC") and the State of Utah. On April 30, 2021, the Company completed the acquisition of a majority ownership interest in TIDAL, a global music and entertainment platform that brings fans and artists together through unique music, content, and experiences. In the third quarter of 2021, the Company launched TBD, a bitcoin-focused business established to build an open developer platform with the goal of making it easy to create non-custodial, permissionless, and decentralized financial services. In 2019, the Company launched Spiral, a team solely focused on contributing to bitcoin open source work. The results of operations of TBD and Spiral are immaterial.

On January 31, 2022 (February 1, 2022 Australian Eastern Daylight Time), the Company completed the acquisition of Afterpay LTD (“Afterpay”), to strengthen its position to better deliver compelling financial products and services that expand access to more consumers and drive incremental revenue for merchants of all sizes. See Note 8, Acquisitions for further details.

Block was founded in 2009 and has offices in the United States, Canada, Japan, Australia, Ireland, the United Kingdom, Spain, Lithuania, and Norway. As of 2021, we do not designate a headquarters location as we have adopted a distributed work model.

Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (U.S. GAAP). Our consolidated financial statements include the accounts of Block, Inc. our wholly-owned subsidiaries, and entities for which we control a majority of the entity’s outstanding common stock. We record non-controlling interest in our consolidated financial statements to recognize the minority ownership interest in our consolidated subsidiaries. Non-controlling interest in the earnings and losses of consolidated subsidiaries represent the share of net income or loss allocated to the minority interest holders of our consolidated entities, which includes the non-controlling interest share of net income or loss. We have eliminated significant intercompany transactions and accounts in our consolidated financial statements.

Use of Estimates

The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, as well as related disclosure of contingent assets and liabilities. Actual results could differ from the Company’s estimates. To the extent that there are material differences between these estimates and actual results, the Company’s financial condition or operating results will be materially affected. The Company bases its estimates on current and past experience, to the extent that historical experience is predictive of future performance and other assumptions that the Company believes are reasonable under the circumstances. The Company evaluates these estimates on an ongoing basis.

Estimates, judgments, and assumptions in these consolidated financial statements include, but are not limited to, those related to accrued transaction losses, contingencies, valuation of loans held for sale, valuation of goodwill and acquired intangible assets, the determination of allowance for loan loss reserves for loans held for investment, pre-acquisition contingencies associated with business combinations, assessing the likelihood of adverse outcomes from claims and disputes,
accrued royalties, income and other taxes, operating and financing lease right-of-use assets and related liabilities, and share-based compensation.

While the Company's business continues to be impacted by the COVID-19 pandemic, it experienced improvements in 2021 as compared to 2020, as the majority of U.S. markets transitioned to varying states of economic recovery and reopenings. However, the emergence of new and more transmissible variants of COVID-19 such as Delta and Omicron has led to a possible resurgence of the virus, particularly in populations with low vaccination rates, and has resulted in new restrictions in certain geographies and among certain businesses. The Company continues to monitor the carrying values of its assets and liabilities based on estimates, judgments and circumstances it is aware of and consider the effects and trends of COVID-19.

The Company's estimates of accrued transaction losses and valuation of loans held for sale are based on historical experience, adjusted for market data relevant to the current economic environment including COVID-19 trends. The Company will continue to update its estimates as developments occur and additional information is obtained. See Note 5, Fair Value of Financial Instruments, for further details on amortized cost over fair value of the loans, and Note 11 Other Consolidated Balance Sheet Components (Current), for further details on transaction losses.

Cash Flow Adjustment

Beginning in the fourth quarter of 2021, the Company adjusted its Consolidated Statement of Cash Flows to include changes in customer funds, and cash and cash equivalents associated with Customer payable as a financing activity. Previously, the changes in customer funds and customer payable were presented within operating activities in the Company's Consolidated Statements of Cash Flows. The adjustment results in the portion of customer funds that is held in cash and cash equivalents, restricted cash and customer funds to be included in the beginning and ending period totals of cash, cash equivalents, restricted cash and customer funds. The Company holds customer funds separate from its corporate funds and does not use customer funds for any corporate purposes.

Prior period amounts have been adjusted to this presentation. These changes have been concluded to be immaterial to the consolidated financial statements and have no impact on previously reported consolidated statements of operations and balance sheets. The adjusted presentation shows all changes associated with customer funds in the consolidated statements of cash flows instead of in the notes to the consolidated financial statements.

The following tables present the effects of the changes on the presentation of these cash flows to the previously reported consolidated statements of cash flows:

Year Ended December 31, 2020
Net cash provided by (used in):
As Previously Reported (i)
AdjustmentsAs Adjusted
Operating activities (ii)
$381,603 $(208,493)$173,110 
Investing activities (606,636)— (606,636)
Financing activities (iii)
2,315,195 1,361,540 3,676,735 
Effect of foreign exchange rate on cash and cash equivalents12,995 — 12,995 
Net increase in cash, cash equivalents, restricted cash and customer funds2,103,157 1,153,047 3,256,204 
Cash, cash equivalents, restricted cash and customer funds, beginning of the year1,098,706 438,261 1,536,967 
Cash, cash equivalents, restricted cash and customer funds, end of the year$3,201,863 $1,591,308 $4,793,171 
___________________
(i)As reported in our 2020 Form 10-K filed with the SEC on February 23, 2021.
(ii)Financial statement lines impacted in operating activities were Customer funds and Customers payable.
(iii)Financial statement line impacted in financing activities was the addition of a new line called Change in customer funds, restricted from use in the Company's operations.
Year Ended December 31, 2019
Net cash provided by (used in):
As Previously Reported (i)
AdjustmentsAs Adjusted
Operating activities (ii)
$465,699 $(138,069)$327,630 
Investing activities 95,193 — 95,193 
Financing activities (iii)
(98,874)342,275 243,401 
Effect of foreign exchange rate on cash and cash equivalents3,841 — 3,841 
Net increase in cash, cash equivalents, restricted cash and customer funds465,859 204,206 670,065 
Cash, cash equivalents, restricted cash and customer funds, beginning of the year632,847 234,055 866,902 
Cash, cash equivalents, restricted cash and customer funds, end of the year$1,098,706 $438,261 $1,536,967 
___________________
(i)As reported in our 2019 Form 10-K filed with the SEC on February 26, 2020.
(ii)Financial statement lines impacted in operating activities were Customer funds and Customers payable.
(iii)Financial statement line impacted in financing activities was the addition of a new line called Change in customer funds, restricted from use in the Company's operations.

Revenue Recognition

Revenue is recognized when control of the promised goods or services is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services.

Transaction-based revenue

The Company charges its sellers a transaction fee for managed payments solutions that is generally calculated as a percentage of the total transaction amount processed. The Company selectively offers custom pricing for certain sellers. The Company collects the transaction amount from the seller's customer's bank, net of acquiring interchange and assessment fees, processing fees, and bank settlement fees paid to third-party payment processors and financial institutions. The Company retains its fees and remits the net amount to the sellers.

The Company acts as the merchant of record for its sellers and works directly with payment card networks and banks so that its sellers do not need to manage the complex systems, rules, and requirements of the payments industry. The Company satisfies its performance obligations and therefore recognizes the transaction fees as revenue upon authorization of a transaction by the seller's customer's bank.

Revenue is recognized net of refunds, which arise from reversals of transactions initiated by sellers.

The transaction fees collected from sellers are recognized as revenue on a gross basis as the Company is the principal in the delivery of the managed payments solutions to the sellers. The Company has concluded it is the principal because as the merchant of record, it controls the services before delivery to the seller, it is primarily responsible for the delivery of the services to its sellers, and it has discretion in setting prices charged to sellers. The Company also has the unilateral ability to accept or reject a transaction based on criteria established by the Company. As the merchant of record, Square is liable for the costs of processing the transactions for its sellers, and records such costs within cost of revenue.

The Company also charges certain Cash App customers making peer-to-peer transactions using business accounts, or funding transactions with a credit card, a transaction fee that is generally calculated as a percentage of the total transaction amount processed. The Company collects the transaction amount from the customer's Cash App account, net of incurring interchange and assessment fees, processing fees, and bank settlement fees paid to third-party payment processors and financial institutions. The Company retains its fees and remits the net amount to the customers.
Subscription and services-based revenue

Subscription and services-based revenue is primarily comprised of revenue the Company generates from Instant Deposit and Cash Card, Square Loans (formerly known as Square Capital), website hosting and domain name registration services, TIDAL, and various other software as a service (SaaS) products. Instant Deposit is a functionality within the Cash App and the Company's managed payments solution that enables customers, including individuals and sellers, to instantly deposit funds into their bank accounts. The Company charges a per transaction fee which is recognized as revenue when customers instantly deposit funds to their bank account. The Company also offers Cash App customers the ability to use funds stored in the Cash App via a Visa prepaid card (Cash Card), for which the Company earns a per transaction fee that is recorded as revenue.

Beginning in April 2021, the Company started originating loans to customers through Square Financial Services. Prior to April 2021, the Company facilitated loans to customers through a partnership with an industrial bank. The loans are either repaid through withholding a percentage of the collections of the seller's receivables processed by the Company or a specified monthly amount. The Company generally utilizes a pre-qualification process that includes an analysis of the aggregated data of the seller’s business which includes, but is not limited to, the seller’s historical processing volumes, transaction count, chargebacks, growth, and length of time as a Square customer. Generally, the loans have no stated coupon rate but the seller is charged a one-time origination fee based upon their risk rating, which is derived primarily from processing activity. For some of the loans, it is the Company’s intent to sell all of its rights, title, and interest of these loans to third-party investors for an upfront fee when the loans are sold. The Company records as cost of the loans, the amounts advanced to the customers or the net amounts paid to purchase the loans. Subsequently, the Company records a gain on sale of the loans to the third-party investors as revenue upon transfer of title. The Company is retained by the third-party investors to service the loans and earns a servicing fee for facilitating the repayment of these receivables through its managed payments solutions. The Company records servicing revenue as servicing is delivered. For the loans which are not immediately sold to third-party investors or for which the Company has the intent and ability to hold through maturity, interest and fees earned are recognized as revenue using the effective interest method.

The Company offers customers website hosting services for a fee that is generally billed at inception. The Company also acts as a reseller of domain names registration services for a registrar for a fee, which is also generally billed at inception. The Company considers that it satisfies its performance obligations over time and as such recognizes revenue ratably over the term of the relevant arrangements, which vary from one month to twenty four months for website hosting, and one year to ten years for domain name registration.

TIDAL primarily generates revenue from subscriptions to its customers, and such subscriptions allow access to the song library, video library, and improved sound quality. Customers can subscribe to services directly from the TIDAL website or through the Apple store, for which the Company charges a monthly fee which is recognized ratably as revenue as the service is provided.

SaaS represents software products and solutions that provide customers with access to various technologies for a fee which is recognized as revenue ratably as the service is provided. The Company's contracts with customers are generally for a term of one month and renew automatically each month. The Company invoices its customers monthly. The Company considers that it satisfies its performance obligations over time each month as it provides the SaaS services to customers and hence recognizes revenue ratably over the month.

Hardware revenue

The Company generates revenue through the sale of hardware through e-commerce and through its retail distribution channels. The Company satisfies its performance obligation upon delivery of hardware to its customers which include end user customers, distributors, and retailers. The Company allows for customer returns which are accounted for as variable consideration. The Company estimates these amounts based on historical experience and reduces revenue recognized. The Company invoices end user customers upon delivery of the products to customers, and payments from such customers are due upon invoicing. Distributors and retailers have payment terms that range from 30 to 90 days after delivery.

The Company offers hardware installment sales to customers with terms ranging from three to twenty four months. The Company allocates a portion of the consideration received from these arrangements to a financing component when it determines that a significant financing component exists. The financing component is subsequently recognized as financing revenue separate from hardware revenue, within subscription and services-based revenue, over the terms of the arrangement
with the customer. Pursuant to practical expedients afforded under ASC 606, the Company does not recognize a financing component for hardware installment sales that have a term of one year or less.

Bitcoin revenue

The Company offers its Cash App customers the ability to purchase bitcoin, a cryptocurrency denominated asset, from the Company. The Company satisfies its performance obligation and records revenue when bitcoin is transferred to the customer's account. The Company purchases bitcoin from private broker dealers or from Cash App customers and applies a marginal fee before selling it to its customers. The sale amounts received from customers are recorded as revenue on a gross basis and the associated bitcoin cost as cost of revenues, as the Company is the principal in the bitcoin sale transaction. The Company has concluded it is the principal because it controls the bitcoin before delivery to the customers, it is primarily responsible for the delivery of the bitcoin to the customers, it is exposed to risks arising from fluctuations of the market price of bitcoin before delivery to customers, and has discretion in setting prices charged to customers.

Cost of Revenue

Transaction-based costs

Transaction-based costs consist primarily of interchange and assessment fees, processing fees and bank settlement fees paid to third-party payment processors and financial institutions.

Subscription and services-based costs

Subscriptions and services-based costs consists of costs associated with Cash Card, Instant Deposit, and TIDAL costs. Prior to 2020, subscription and services-based costs consisted primarily of Caviar-related costs. The Caviar business was sold in the fourth quarter of 2019.

Hardware costs

Hardware costs consist of all product costs associated with contactless and chip readers, chip card readers, Square Terminal, Square Stand, Square Register, and third-party peripherals. Product costs consist of third-party manufacturing-related overhead and personnel costs, certain royalties, packaging, and fulfillment costs.

Bitcoin costs

Bitcoin cost of revenue comprises of the amounts the Company pays to purchase bitcoin, which will fluctuate in line with the price of bitcoin in the market.

Other costs

Generally, other costs such as employee costs, rent, and occupancy charges are not allocated to cost of revenues and are reflected in operating expenses and are not material.

Sales and Marketing Expenses

Advertising costs are expensed as incurred and included in sales and marketing expense in the consolidated statements of operations. Total advertising costs for the years ended December 31, 2021, 2020, and 2019 were $435.8 million, $224.7 million, and $142.7 million, respectively. In addition, services, incentives, and other costs to customers that are not directly related to a revenue generating transaction are recorded as sales and marketing expenses, as the Company considers these to be marketing costs to encourage the usage of Cash App. These expenses include, but are not limited to, Cash App peer-to-peer processing costs and related transaction losses, card issuance costs, customer referral bonuses, and promotional giveaways, and were $778.3 million, $635.3 million, and $279.7 million, for the years ended December 31, 2021, 2020, and 2019, respectively.
Share-based Compensation

Share-based compensation expense relates to stock options, restricted stock awards (RSAs), restricted stock units (RSUs), and purchases under the Company’s 2015 Employee Stock Purchase Plan (ESPP) which is measured based on the grant-date fair value. The fair value of RSAs and RSUs is determined by the closing price of the Company’s common stock on each grant date. The fair value of stock options and ESPP shares granted to employees is estimated on the date of grant using the Black-Scholes-Merton option valuation model. This share-based compensation expense valuation model requires the Company to make assumptions and judgments regarding the variables used in the calculation. These variables include the expected term (weighted average period of time that the options granted are expected to be outstanding), the expected volatility of the Company’s stock, expected risk-free interest rate and expected dividends. The Company uses the simplified calculation of expected term, defined as an average of the vesting term and the contractual term to maturity. Expected volatility is based on a weighted average of the historical volatilities of the Company's common stock along with several entities with characteristics similar to those of the Company. In May 2020, the Company began using its own volatility, as the Company uses its own historical stock price information, such that a peer group is no longer considered necessary. The expected risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected life of the option. Generally, share-based compensation expense is recorded on a straight-line basis over the requisite service period. The Company accounts for forfeitures as they occur.

Interest Income and Expense, net

Interest income consists of interest income from the Company's investment in marketable debt securities and interest expense relating to the Company's long-term debt. Interest income for the years ended December 31, 2021, 2020, and 2019 were $25.0 million, $18.3 million, and $23.4 million, respectively. Interest expense for the years ended December 31, 2021, 2020, and 2019 were $58.1 million, $75.2 million, and $44.9 million, respectively.

Income and Other Taxes

The Company reports income taxes under the asset and liability approach. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, as well as net operating loss and tax credit carryforwards. Deferred tax amounts are determined by using the enacted tax rates expected to be in effect when the temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

A valuation allowance reduces the deferred tax assets to the amount that is more likely than not to be realized. The Company considers historical information, tax planning strategies, the expected timing of the reversal of existing temporary differences, and may rely on financial projections to support its position on the recoverability of deferred tax assets. The Company’s judgment regarding future profitability contains significant assumptions and estimates of future operations. If such assumptions were to differ significantly from actual future results of operations, it may have a material impact on the Company’s ability to realize its deferred tax assets. At the end of each period, the Company assesses the ability to realize the deferred tax assets. If it is more likely than not that the Company will not realize the deferred tax assets, then the Company establishes a valuation allowance for all or a portion of the deferred tax assets.

The Company recognizes the effect of uncertain income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that has a greater than 50% likelihood of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest and penalties related to uncertain tax positions in the provision for income tax expense on the consolidated statements of operations.

Cash and Cash Equivalents and Restricted Cash and Customer Funds

Cash and Cash Equivalents:

The Company considers all highly liquid investments, including money market funds, with an original maturity of three months or less when purchased to be cash equivalents.
Restricted Cash:

Restricted cash represents pledged cash deposits in savings accounts at the financial institutions that process the Company's sellers' payment transactions and collateral pursuant to various agreements with banks relating to the Company's loan products. The Company uses the restricted cash to secure letters of credit with the financial institution to provide collateral for cash flow timing differences in the processing of payments. The Company records amounts as a current asset on the consolidated balance sheets if the restriction expires in less than 12 months, or as a non-current asset if the restriction is 12 months or longer. If there is no minimum time frame during which the cash must remain restricted, the nature of the transactions related to the restriction determine the classification. Additionally, this balance includes certain amounts held as collateral pursuant to multi-year lease agreements that we expect to become unrestricted within the next year, as discussed in the paragraph below. As of December 31, 2021 and 2020, restricted cash for these purposes was $18.8 million and $30.3 million, respectively.

As of December 31, 2021, the remaining restricted cash of $71.7 million is primarily related to collateral as required by the FDIC for Square Financial Services. As of December 31, 2020, the remaining restricted cash of $13.5 million is primarily related to cash held as collateral pursuant to multi-year lease agreements (Note 18). The Company has recorded these amounts as non-current assets on the consolidated balance sheets as the terms of the related leases extend beyond one year, and the requirement by the FDIC specifies a time frame of 12 months or longer during which the cash must remain restricted.

Customer funds:

Customer funds represent customers' stored balances that customers would later use to send money or make payments, or customers cash in transit. Under the terms of service associated with these funds, the Company is restricted from using the funds from use in the Company's operations. The Company invests a portion of these stored balances in short-term marketable debt securities (Note 4). The Company determines the appropriate classification of the investments in marketable debt securities within customer funds at the time of purchase and reevaluates such designation at each balance sheet date.

Concentration of Credit Risk

For the years ended December 31, 2021, 2020 and 2019, the Company had no customer that accounted for greater than 10% of total net revenue.

The Company had two third-party payment processors that represented approximately 52% and 30% of settlements receivable as of December 31, 2021. As of December 31, 2020, there were two parties that represented approximately 59% and 27% of settlements receivable. All other third-party processors were insignificant.

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash, marketable debt securities, settlements receivable, customer funds, loans held for sale, and loans held for investment. The associated risk of concentration for cash and cash equivalents and restricted cash is mitigated by banking with creditworthy institutions. At certain times, amounts on deposit exceed federal deposit insurance limits. The associated risk of concentration for marketable debt securities is mitigated by holding a diversified portfolio of highly rated investments. Settlements receivable are amounts due from well-established payment processing companies and normally take one or two business days to settle which mitigates the associated risk of concentration. The associated risk of concentration for loans held for sale is partially mitigated by credit evaluations that are performed prior to facilitating the offering of loans and ongoing performance monitoring of the Company’s loan customers. The risk associated with the PPP loans is considered low due to government guarantees on those loans.
Investments in marketable debt securities

The Company's short-term and long-term investments include marketable debt securities such as government and agency securities, corporate bonds, commercial paper and municipal securities. The Company determines the appropriate classification of its investments in marketable debt securities at the time of purchase and reevaluates such designation at each balance sheet date. The Company has classified and accounted for its marketable debt securities as available-for-sale and carries these investments at fair value, reporting the unrealized gains and losses, net of taxes, as a component of stockholders’ equity. The U.S. government and U.S. agency securities are either explicitly or implicitly guaranteed by the U.S. government and are highly rated by major rating agencies. The corporate bonds are issued by highly rated entities. The foreign government securities are issued by highly rated international entities. The Company has the ability and intent to hold these investments with unrealized losses for a reasonable period of time sufficient for the recovery of their amortized cost bases, which may be at maturity. The Company determines any realized gains or losses on the sale of marketable debt securities on a specific identification method, and records such gains and losses as a component of other expense (income), net.

Investments in equity securities

The Company holds marketable and non-marketable equity investments, over which the Company does not have a controlling interest or significant influence. Marketable equity investments are measured using quoted prices in active markets with changes recorded in other expense (income), net on the consolidated statements of operations. Non-marketable equity investments have no readily determinable fair values and are measured using the measurement alternative, which is defined as cost, less impairment, adjusted for observable price changes from orderly transactions for identical or similar investments of the same issuer. Adjustments are recorded in other expense (income), net on the consolidated statements of operations.

Non-marketable equity investments are valued using significant unobservable inputs or data in an inactive market and the valuation requires our judgment due to the absence of market prices and inherent lack of liquidity. The carrying value for these investments is not adjusted if there are no observable transactions for identical or similar investments of the same issuer or if there are no identified events or changes in circumstances that may indicate impairment. The Company will adjust for changes resulting from observable price changes in orderly transactions for an identical or similar investment in the same issue. Valuations of non-marketable equity investments are inherently complex due to the lack of readily available market data. In addition, the determination of whether an orderly transaction is for an identical or similar investment requires significant management judgment, including understanding the differences in the rights and obligations of the investments and the extent to which those differences would affect the fair values of those investments.

The Company assesses the impairment of its non-marketable equity investments on a quarterly basis. The impairment analysis encompasses an assessment of the severity and duration of the impairment and a qualitative and quantitative analysis of other key factors including the investee’s financial metrics, market acceptance of the investee’s product or technology, other competitive products or technology in the market, general market conditions, and the rate at which the investee is using its cash. If the investment is considered to be impaired, the Company will record an impairment in other expense (income), net on the consolidated statements of operations and establish a new carrying value for the investment.

Fair Value of Financial Instruments

The Company applies fair value accounting for all financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. Fair value accounting establishes a three-level hierarchy priority for disclosure of assets and liabilities recorded at fair value. The ordering of priority reflects the degree to which objective prices in external active markets are available to measure fair value. The classification of assets and liabilities within the hierarchy is based on whether the inputs to the valuation methodology used for measurement are observable or unobservable.

The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels:
•Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date.

•Level 2 Inputs: Other than quoted prices included in Level 1 Inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability.

•Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date.

Customer Loans

Prior to April 2021, the Company purchased loans from an industrial bank partner. In April 2021, the Company began originating loans through Square Financial Services. The Company classifies customer loans that the Company has the intent to sell all of its rights, title, and interest in these loans to third-party investors as loans held for sale, as there is an available market for such loans. The Company classifies customer loans retained on its balance sheet that the Company has both the intent and ability to hold for the foreseeable future, or until maturity or payoff, as loans held for investment.

Loans Held for Sale:

Loans held for sale are recorded at the lower of amortized cost or fair value determined on an individual loan basis. To determine the fair value the Company utilizes discounted cash flow valuation modeling, taking into account the probability of default and estimated timing and amounts of periodic repayments. In estimating the expected timing and amounts of the future periodic repayments for the loans outstanding, the Company considered other relevant market data, including the impact of the COVID-19 pandemic. With respect to PPP loans, the Company also considers the impact of government guarantees and loan forgiveness on the timing and amounts of future cash flows. The Company recognizes a charge within transaction and loan losses in the consolidated statement of operations whenever the amortized cost of a loan exceeds its fair value, with such charges being reversed for subsequent increases in fair value, but only to the extent that such reversals do not result in the amortized cost of a loan exceeding its fair value. A loan that is initially designated as held for sale may be reclassified to held for investment if and when the Company's intent for that loan changes. For the year ended December 31, 2021, $224.8 million have been reclassified from loans held for sale to loans held for investment. Upon origination, the Company's loans are designated as available for sale. The majority of loans are subsequently sold. Loans that are not sold within one to two business days from origination are reclassified as held for investment.

Loans Held for Investment:

Loans held for investment are recorded at amortized cost, less an allowance for potential uncollectible amounts. Amortized cost basis represents principal amounts outstanding, net of unearned income, unamortized deferred fees and costs on originated loans, premiums or discounts on purchased loans and charge-offs. The Company’s intent and ability to designate loans as held for investment in the future may change based on changes in business strategies, the economic environment, and market conditions.

The Company calculates an allowance for losses on the loans held for investment portfolio in accordance with ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The Company assesses impairment of its financial instruments based on current estimates of expected credit losses over the contractual term of its loans held for investment portfolio as of each balance sheet date. The Company determines the allowance for loan losses using both quantitative and qualitative methods and considers all available information relevant to assessing collectability. This includes but is not limited to: historical loss and recovery experience, recent and historical trends in delinquencies, past-due loans and charge-offs, borrower behavior and repayment speed, underwriting and collection management changes, changes in the legal and regulatory environment, changes in risk and underwriting standards, current and historical macroeconomic conditions such as changes in unemployment and GDP, and various other factors that may affect the sellers’ ability to make future payments.
Settlements Receivable
    
Settlements receivable represents amounts due from third-party payment processors for customer transactions. Settlements receivable are typically received within one or two business days of the transaction date. No valuation allowances have been established, as funds are due from large, well-established financial institutions with no historical collections issue.

Inventory

Inventory is comprised of contactless and chip readers, chip card readers, Square Stand, Square Register, Square Terminal and third-party peripherals, as well as component parts that are used to manufacture these products. Inventory is stated at the lower of cost (generally on a first-in, first-out basis) or net realizable value. Inventory that is obsolete or in excess of forecasted usage is written down to its net realizable value based on the estimated selling prices in the ordinary course of business. The Company's inventory is held at third party warehouses and contract manufacturer premises.

Deferred Revenue

Deferred revenue is primarily comprised of payments for website hosting and domain name registration received from customers at inception of the arrangements prior to the services being rendered.

Investments in bitcoin

Bitcoin is a cryptocurrency that is considered to be an indefinite lived intangible asset because bitcoin lacks physical form and there is no limit to its useful life. Accordingly, bitcoin is not subject to amortization but is tested for impairment on a daily basis to assess if it is more likely than not that it is impaired. The Company has concluded that because bitcoin is traded in an active market where there are observable prices, a decline in the quoted price below cost is generally viewed as an impairment indicator, in which case the fair value is used to assess whether an impairment loss should be recorded. If the fair value of bitcoin decreases below the carrying value during the assessed period an impairment charge is recognized at that time. After an impairment loss is recognized, the adjusted carrying amount of bitcoin becomes its new accounting basis. A subsequent reversal of a previously recognized impairment loss is prohibited until the sale of the asset.

Property and Equipment

Property and equipment are recorded at historical cost less accumulated depreciation, which is computed on a straight-line basis over the asset’s estimated useful life. The estimated useful lives of property and equipment are described below:

Property and EquipmentUseful Life
Capitalized software18 months
Computer and data center equipment
Three years
Furniture and fixturesSeven years
Leasehold improvements
Lesser of ten years or remaining lease term

Capitalized Software

The Company capitalizes certain costs incurred in developing internal-use software when capitalization requirements have been met. Costs prior to meeting the capitalization requirements are expensed as incurred. Capitalized costs are included in property and equipment, net, and amortized on a straight-lined basis over the estimated useful life of the software and included in product development costs on the consolidated statements of operations. The Company capitalized $39.2 million and $42.0 million of internally developed software during the years ended December 31, 2021 and 2020, respectively, and recognized $33.4 million, $19.8 million and $18.9 million of amortization expense during the years ended December 31, 2021, 2020 and 2019, respectively.
Leases

The Company leases office space and equipment under non-cancellable finance and operating leases with various expiration dates.

The Company adopted Accounting Standards Codification (ASC) 842, Leases (ASC 842) on January 1, 2019, and elected the optional transition method to apply the transition provisions from the effective date of adoption, which requires the Company to report the cumulative effect of the adoption of the standard on the date of adoption with no changes to the prior period balances. Pursuant to the practical expedients, the Company elected not to reassess: (i) whether expired or existing contracts are or contain leases, (ii) the lease classification for any expired or existing leases, or, (iii) initial direct costs for any existing leases. The Company elected to apply the short-term lease measurement and recognition exemption to its leases where applicable. Operating lease right-of-use assets and operating lease liabilities are recognized at the present value of the future lease payments, generally for the base noncancellable lease term, at the lease commencement date for each lease. The interest rate used to determine the present value of the future lease payments is the Company's incremental borrowing rate because the interest rate implicit in most of the Company's leases is not readily determinable. The Company's incremental borrowing rate is estimated to approximate the interest rate that the Company would pay to borrow on a collateralized basis with similar terms and payments as the lease, and in economic environments where the leased asset is located. Operating lease right-of-use assets also include any prepaid lease payments and lease incentives. The Company's lease agreements generally contain lease and non-lease components. Non-lease components, which primarily include payments for maintenance and utilities, are combined with lease payments and accounted for as a single lease component. The Company includes the fixed non-lease components in the determination of the right-of-use assets and operating lease liabilities. Variable lease payments are not included in the calculation of the right-of-use asset and lease liability, and they are recognized as lease expense is incurred. Variable lease payments predominantly relate to variable operating expenses, taxes, parking, and electricity. The Company records the amortization of the right of use asset and the accretion of lease liability as a component of rent expense in the consolidated statement of operations. The accounting for finance leases remained substantially unchanged.

When lease agreements provide allowances for leasehold improvements, the Company assesses whether it is the owner of the leasehold improvements for accounting purposes. When the Company concludes that it is the owner, it capitalizes the leasehold improvement assets and recognizes the related depreciation expense on a straight-line basis over the lesser of the lease term or the estimated useful life of the asset. Additionally, the Company recognizes the amounts of allowances to be received from the lessor as a reduction of the lease liability and the associated right of use asset. When the Company concludes that it is not the owner, the payments that the Company makes towards the leasehold improvements are accounted as a component of the lease payments.

The Company records a liability for the estimated fair value for asset retirement obligations (ARO) associated with its leases, with an offsetting asset. In the determination of the fair value of AROs, the Company uses various assumptions and judgments, including such factors as the existence of a legal obligation, estimated amounts and timing of settlements, and discount rates. The liability is subsequently accreted while the asset is depreciated. As of December 31, 2021, the Company had a liability for AROs of $3.8 million and an associated asset, net of depreciation, of $0.7 million.
Business Combinations

The purchase price of an acquisition is allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the acquisition dates. The excess of total consideration over the fair values of the assets acquired and the liabilities assumed is recorded as goodwill. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments would be recorded on the consolidated statements of operations.

Long-Lived Assets, including Goodwill and Acquired Intangibles

The Company evaluates the recoverability of property and equipment and finite lived intangible assets for impairment whenever events or circumstances indicate that the carrying amounts of such assets may not be recoverable. Recoverability is measured by comparing the carrying amount of an asset or an asset group to estimated undiscounted future net cash flows expected to be generated. If the carrying amount of the long–lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values, and third–party independent appraisals, as considered necessary. For the periods presented, the Company recorded no impairment charges.

The Company performs a goodwill impairment test annually on December 31 and more frequently if events and circumstances indicate that the asset might be impaired. An impairment loss is recognized to the extent that the carrying amount exceeds the reporting unit’s fair value. The Company first assesses qualitative factors to determine whether events or circumstances indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying amount and determine whether further action is needed. If, after assessing the totality of events or circumstances, the Company determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. For the periods presented, the Company had recorded no impairment charges.

Acquired intangibles consist of acquired technology and customer relationships associated with various acquisitions. Acquired technology is amortized over its estimated useful life on a straight-line basis within cost of revenue. Customer relationships acquired are amortized on a straight-line basis over their estimated useful lives within operating expenses. The Company evaluates the remaining estimated useful life of its intangible assets being amortized on an ongoing basis to determine whether events and circumstances warrant a revision to the remaining period of amortization.

Customers Payable

Customers payable represents the transaction amounts, less revenue earned by the Company, owed to sellers or Cash App customers. The payable amount comprises amounts owed to customers due to timing differences as the Company typically settles within one business day, amounts held by the Company in accordance with its risk management policies, and amounts held for customers who have not yet linked a bank account. This balance also includes the Company's liability for customer funds held on deposit in the Cash App.

Accrued Transaction Losses

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, disputes between a seller and their customer, or due to fraudulent transactions. Accrued transaction losses also include estimated losses on Cash App activity related to peer-to-peer payments sent from a credit card, Cash for Business, and Cash Card. 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 Company also considers other relevant market data in developing such estimates and assumptions, including the impact of the COVID-19 pandemic. Additions to the reserve are reflected in current operating results, while realized losses are offset against the reserve. These amounts are classified within transaction and loan losses on the consolidated statements of operations, except for the amounts associated with the peer-to-peer service offered to Cash App customers for free that are classified within sales and marketing expenses.
Segments

Effective June 30, 2020, the Company changed its operating segments to reflect the manner in which the Company's Chief Operating Decision Maker ("CODM") reviews and assesses performance. The Company has two reportable segments, which are Square (formerly Seller) and Cash App. Square includes managed payment services, software solutions, hardware and financial services products offered to sellers, while Cash App includes financial tools available to individuals such as P2P (peer-to-peer) payments, Cash Card transactions, bitcoin and stock investing that enable customers to easily send, spend, and store money. Products and services that are not assigned to a specific reportable segment including TIDAL, TBD, and Spiral are aggregated and presented within a general corporate and other category, as their results of operations are immaterial.


Recent Accounting Pronouncements
Recently adopted accounting pronouncements

In August 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity's Own Equity, as part of its overall simplification initiative to reduce costs and complexity of applying accounting standards while maintaining or improving the usefulness of the information provided to users of financial statements. The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years, with early adoption permitted, but only at the beginning of the fiscal year. The Company early adopted the new guidance on January 1, 2021 using the modified retrospective approach and recorded a cumulative effect upon adoption of $103.0 million as a reduction to accumulated deficit and a reduction to other paid in capital of $502.7 million related to amounts attributable to conversion options that had previously been recorded in equity. Additionally, the Company recorded an increase to its convertible notes balance by an aggregate amount of $399.7 million as a result of the reversal of the separation of the convertible debt between debt and equity. The adoption of this standard also significantly decreased the amount of non-cash interest expense to be recognized in future periods as a result of eliminating the discount associated with the equity component. There was no impact to the Company’s statements of cash flows as the result of the adoption of ASU No. 2020-06.

In October 2020, the FASB issued ASU No. 2020-10, Codification Improvements ("Codification"). The update provides incremental improvements on various topics in the Codification to provide clarification, correct errors in, and to provide simplification on a variety of topics. Among other items, the guidance includes presentation disclosures for the amount of income tax expense or benefit related to other comprehensive income. The amendments are effective for public entities in fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Early adoption is permitted. The Company adopted this guidance effective January 1, 2021 and has applied the guidance prospectively. The adoption of this guidance did not have a material impact on the Company’s financial statements and related disclosures.
Recently issued accounting pronouncements not yet adopted

In July 2021, the FASB issued ASU No. 2021-05 ("ASU 2021-05") "Lease (Topic 842): Lessors - Certain Leases with Variable Lease Payments" which amends the lease classification requirements for lessors with certain leases containing variable payments. A lessor should classify and account for a lease with variable lease payments that do not depend on an index or a rate as an operating lease if both of the following criteria are met: 1) the lease would have been classified as a sales-type lease or a direct financing lease; and 2) the lessor would have otherwise recognized a day-one loss. The amendments in ASU 2021-05 are effective for fiscal years beginning after December 15, 2021, with early adoption permitted. The Company is evaluating the effect of adopting this new accounting guidance, but does not expect the adoption to have a material impact on the Company’s financial statements.

In May 2021, the FASB issued ASU No. 2021-04 (“ASU 2021-04”) “Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation— Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40)” which provides guidance on modifications or exchanges of a freestanding equity-classified written call option that is not within the scope of another Topic. An entity should treat a modification of the terms or conditions or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange as an exchange of the original instrument for a new instrument, and provides further guidance on measuring the effect of a modification or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange. ASU 2021-04 also provides guidance on the recognition of the effect of a modification or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange on the basis of the substance of the transaction, in the same manner as if cash had been paid as consideration. The amendments are effective for all entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted. The Company is evaluating the effect of adopting this new accounting guidance, but does not expect adoption to have a material impact on the Company’s financial statements.

In October 2021, the FASB issued ASU No 2021-08 ("ASU 2021-08") "Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers" which requires entities to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. Under current GAAP, an acquirer generally recognizes assets acquired and liabilities assumed in a business combination, including contract assets and contract liabilities arising from revenue contracts with customers, at fair value on the acquisition date. The amendments in ASU 2021-08 will result in the acquirer recording acquired contract assets and liabilities on the same basis that would have been recorded by the acquiree before the acquisition under ASC Topic 606. The amendments in ASU 2021-08 are effective for fiscal years beginning after December 15, 2022, with early adoption permitted. The Company is evaluating the effect of adopting this new accounting guidance.
v3.22.0.1
REVENUE
 12 Months Ended
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]  
REVENUE REVENUE
The following table presents the Company's revenue disaggregated by revenue source (in thousands):
Year Ended December 31,
202120202019
Revenue from Contracts with Customers:
Transaction-based revenue$4,793,146 $3,294,978 $3,081,074 
Subscription and services-based revenue2,445,811 1,447,188 883,922 
Hardware revenue145,679 91,654 84,505 
Bitcoin revenue10,012,647 4,571,543 516,465 
Revenue from other sources:
Subscription and services-based revenue263,920 92,215 147,534 
Total net revenue$17,661,203 $9,497,578 $4,713,500 
v3.22.0.1
INVESTMENTS IN DEBT SECURITIES
 12 Months Ended
Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]  
INVESTMENTS IN DEBT SECURITIES INVESTMENTS IN DEBT SECURITIES
The Company's short-term and long-term investments as of December 31, 2021 are as follows (in thousands):
Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Short-term debt securities:
U.S. agency securities$73,986 $150 $(8)$74,128 
Corporate bonds293,460 128 (269)293,319 
Commercial paper36,088 — — 36,088 
Municipal securities5,543 5 — 5,548 
Certificates of deposit9,200 — — 9,200 
U.S. government securities430,992 106 (255)430,843 
Foreign government securities20,256 19 (118)20,157 
Total$869,525 $408 $(650)$869,283 
Long-term debt securities:
U.S. agency securities$154,454 $26 $(1,160)$153,320 
Corporate bonds667,699 80 (4,572)663,207 
Municipal securities22,541 2 (126)22,417 
U.S. government securities678,553 3 (4,080)674,476 
Foreign government securities13,084 — (74)13,010 
Total$1,536,331 $111 $(10,012)$1,526,430 
    
The Company's short-term and long-term investments as of December 31, 2020 are as follows (in thousands):
Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Short-term debt securities:
U.S. agency securities$153,386 $782 $(164)$154,004 
Corporate bonds76,957 256 (14)77,199 
Commercial paper4,999 — — 4,999 
Municipal securities10,377 57 (3)10,431 
U.S. government securities404,194 1,244 (4)405,434 
Foreign government securities42,988 139 (82)43,045 
Total$692,901 $2,478 $(267)$695,112 
Long-term debt securities:
U.S. agency securities$168,762 $519 $(3)$169,278 
Corporate bonds174,655 1,401 (42)176,014 
Municipal securities1,045 15 — 1,060 
U.S. government securities91,642 433 (2)92,073 
Foreign government securities25,351 184 (10)25,525 
Total$461,455 $2,552 $(57)$463,950 

The amortized cost of investments classified as cash equivalents approximated the fair value due to the short-term nature of the investments.
The Company's gross unrealized losses and fair values for those investments that were in an unrealized loss position as of December 31, 2021 and 2020, aggregated by investment category and the length of time that individual securities have been in a continuous loss position are as follows (in thousands):

December 31, 2021
Less than 12 monthsGreater than 12 monthsTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Short-term debt securities:
U.S. agency securities$26,749 $(8)$— $— $26,749 $(8)
Corporate bonds241,792 (269)311 — 242,103 (269)
U.S. government securities347,380 (255)— — 347,380 (255)
Foreign government securities12,734 (118)— — 12,734 (118)
Total$628,655 $(650)$311 $— $628,966 $(650)
Long-term debt securities:
U.S. agency securities$151,472 $(1,160)$— $— $151,472 $(1,160)
Corporate bonds627,467 (4,572)— — 627,467 (4,572)
Municipal securities18,616 (126)— — 18,616 (126)
U.S. government securities639,473 (4,080)— — 639,473 (4,080)
Foreign government securities13,010 (74)— — 13,010 (74)
Total$1,450,038 $(10,012)$— $— $1,450,038 $(10,012)

December 31, 2020
Less than 12 monthsGreater than 12 monthsTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Short-term debt securities:
U.S. agency securities$41,711 $(162)$2,505 $(2)$44,216 $(164)
Corporate bonds15,255 (14)— — 15,255 (14)
Municipal securities2,566 (3)— — 2,566 (3)
U.S. government securities45,970 (4)— — 45,970 (4)
Foreign government securities21,341 (82)— — 21,341 (82)
Total$126,843 $(265)$2,505 $(2)$129,348 $(267)
Long-term debt securities:
U.S. agency securities$1,406 $(3)$— $— $1,406 $(3)
Corporate bonds28,189 (42)— — 28,189 (42)
U.S. government securities8,658 (2)— — 8,658 (2)
Foreign government securities10,929 (10)— — 10,929 (10)
Total$49,182 $(57)$— $— $49,182 $(57)

The Company does not intend to sell nor anticipate that it will be required to sell the securities before recovery of the amortized cost basis. Unrealized losses related to available for sale debt securities were determined not to be due to credit related losses, therefore, an allowance for credit losses is not required.
The contractual maturities of the Company's short-term and long-term investments as of December 31, 2021 are as follows (in thousands):
Amortized CostFair Value
Due in one year or less$869,525 $869,283 
Due in one to five years1,536,331 1,526,430 
Total$2,405,856 $2,395,713 
CUSTOMER FUNDS
The following table presents the assets underlying customer funds (in thousands):
December 31,
2021		December 31,
2020
Cash$242,243 $145,577 
Customer funds in transit— 262,562 
Cash equivalents:
Money market funds2,126,579 777,193 
Reverse repurchase agreement (i)72,119 246,880 
U.S. agency securities— 47,300 
U.S. government securities— 111,796 
Short-term debt securities:
U.S. agency securities29,994 113,178 
U.S. government securities360,060 333,346 
Total$2,830,995 $2,037,832 

(i) The Company has accounted for the reverse repurchase agreement with a third party as an overnight lending arrangement, collateralized by the securities subject to the repurchase agreement. The Company classifies the amounts due from the counterparty as cash equivalents due to the short term nature.

The Company invests customer funds in short-term debt securities, as follows as of December 31, 2021 (in thousands):
Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Short-term debt securities:
U.S. agency securities$30,002 $— $(8)$29,994 
U.S. government securities360,251 — (191)360,060 
Total$390,253 $— $(199)$390,054 


The Company invests customer funds in short-term debt securities, as follows as of December 31, 2020 (in thousands):
Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Short-term debt securities:
U.S. agency securities$113,156 $22 $— $113,178 
U.S. government securities333,323 28 (5)333,346 
Total$446,479 $50 $(5)$446,524 
    
The amortized cost of investments classified as cash equivalents approximated the fair value due to the short-term nature of the investments.

The gross unrealized losses and fair values for those investments that were in an unrealized loss position as of December 31, 2021 and 2020, aggregated by investment category and the length of time that individual securities have been in a continuous loss position are as follows (in thousands):
December 31, 2021
Less than 12 monthsGreater than 12 monthsTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Short-term debt securities:
U.S. agency securities$29,994 $(7)$— $— $29,994 $(7)
U.S. government securities360,060 (191)— — 360,060 (191)
Total$390,054 $(198)$— $— $390,054 $(198)

December 31, 2020
Less than 12 monthsGreater than 12 monthsTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Short-term debt securities:
U.S. government securities$73,609 $(5)$— $— $73,609 $(5)
Total$73,609 $(5)$— $— $73,609 $(5)

The Company does not have any available for sale debt securities for which the Company has recorded credit related losses.

The contractual maturities of the Company's investments within customer funds as of December 31, 2021 are as follows (in thousands):
Amortized CostFair Value
Due in one year or less$390,253 $390,054 
Due in one to five years— — 
Total$390,253 $390,054 
v3.22.0.1
CUSTOMER FUNDS
 12 Months Ended
Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]  
CUSTOMER FUNDS INVESTMENTS IN DEBT SECURITIES
The Company's short-term and long-term investments as of December 31, 2021 are as follows (in thousands):
Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Short-term debt securities:
U.S. agency securities$73,986 $150 $(8)$74,128 
Corporate bonds293,460 128 (269)293,319 
Commercial paper36,088 — — 36,088 
Municipal securities5,543 5 — 5,548 
Certificates of deposit9,200 — — 9,200 
U.S. government securities430,992 106 (255)430,843 
Foreign government securities20,256 19 (118)20,157 
Total$869,525 $408 $(650)$869,283 
Long-term debt securities:
U.S. agency securities$154,454 $26 $(1,160)$153,320 
Corporate bonds667,699 80 (4,572)663,207 
Municipal securities22,541 2 (126)22,417 
U.S. government securities678,553 3 (4,080)674,476 
Foreign government securities13,084 — (74)13,010 
Total$1,536,331 $111 $(10,012)$1,526,430 
    
The Company's short-term and long-term investments as of December 31, 2020 are as follows (in thousands):
Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Short-term debt securities:
U.S. agency securities$153,386 $782 $(164)$154,004 
Corporate bonds76,957 256 (14)77,199 
Commercial paper4,999 — — 4,999 
Municipal securities10,377 57 (3)10,431 
U.S. government securities404,194 1,244 (4)405,434 
Foreign government securities42,988 139 (82)43,045 
Total$692,901 $2,478 $(267)$695,112 
Long-term debt securities:
U.S. agency securities$168,762 $519 $(3)$169,278 
Corporate bonds174,655 1,401 (42)176,014 
Municipal securities1,045 15 — 1,060 
U.S. government securities91,642 433 (2)92,073 
Foreign government securities25,351 184 (10)25,525 
Total$461,455 $2,552 $(57)$463,950 

The amortized cost of investments classified as cash equivalents approximated the fair value due to the short-term nature of the investments.
The Company's gross unrealized losses and fair values for those investments that were in an unrealized loss position as of December 31, 2021 and 2020, aggregated by investment category and the length of time that individual securities have been in a continuous loss position are as follows (in thousands):

December 31, 2021
Less than 12 monthsGreater than 12 monthsTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Short-term debt securities:
U.S. agency securities$26,749 $(8)$— $— $26,749 $(8)
Corporate bonds241,792 (269)311 — 242,103 (269)
U.S. government securities347,380 (255)— — 347,380 (255)
Foreign government securities12,734 (118)— — 12,734 (118)
Total$628,655 $(650)$311 $— $628,966 $(650)
Long-term debt securities:
U.S. agency securities$151,472 $(1,160)$— $— $151,472 $(1,160)
Corporate bonds627,467 (4,572)— — 627,467 (4,572)
Municipal securities18,616 (126)— — 18,616 (126)
U.S. government securities639,473 (4,080)— — 639,473 (4,080)
Foreign government securities13,010 (74)— — 13,010 (74)
Total$1,450,038 $(10,012)$— $— $1,450,038 $(10,012)

December 31, 2020
Less than 12 monthsGreater than 12 monthsTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Short-term debt securities:
U.S. agency securities$41,711 $(162)$2,505 $(2)$44,216 $(164)
Corporate bonds15,255 (14)— — 15,255 (14)
Municipal securities2,566 (3)— — 2,566 (3)
U.S. government securities45,970 (4)— — 45,970 (4)
Foreign government securities21,341 (82)— — 21,341 (82)
Total$126,843 $(265)$2,505 $(2)$129,348 $(267)
Long-term debt securities:
U.S. agency securities$1,406 $(3)$— $— $1,406 $(3)
Corporate bonds28,189 (42)— — 28,189 (42)
U.S. government securities8,658 (2)— — 8,658 (2)
Foreign government securities10,929 (10)— — 10,929 (10)
Total$49,182 $(57)$— $— $49,182 $(57)

The Company does not intend to sell nor anticipate that it will be required to sell the securities before recovery of the amortized cost basis. Unrealized losses related to available for sale debt securities were determined not to be due to credit related losses, therefore, an allowance for credit losses is not required.
The contractual maturities of the Company's short-term and long-term investments as of December 31, 2021 are as follows (in thousands):
Amortized CostFair Value
Due in one year or less$869,525 $869,283 
Due in one to five years1,536,331 1,526,430 
Total$2,405,856 $2,395,713 
CUSTOMER FUNDS
The following table presents the assets underlying customer funds (in thousands):
December 31,
2021		December 31,
2020
Cash$242,243 $145,577 
Customer funds in transit— 262,562 
Cash equivalents:
Money market funds2,126,579 777,193 
Reverse repurchase agreement (i)72,119 246,880 
U.S. agency securities— 47,300 
U.S. government securities— 111,796 
Short-term debt securities:
U.S. agency securities29,994 113,178 
U.S. government securities360,060 333,346 
Total$2,830,995 $2,037,832 

(i) The Company has accounted for the reverse repurchase agreement with a third party as an overnight lending arrangement, collateralized by the securities subject to the repurchase agreement. The Company classifies the amounts due from the counterparty as cash equivalents due to the short term nature.

The Company invests customer funds in short-term debt securities, as follows as of December 31, 2021 (in thousands):
Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Short-term debt securities:
U.S. agency securities$30,002 $— $(8)$29,994 
U.S. government securities360,251 — (191)360,060 
Total$390,253 $— $(199)$390,054 


The Company invests customer funds in short-term debt securities, as follows as of December 31, 2020 (in thousands):
Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Short-term debt securities:
U.S. agency securities$113,156 $22 $— $113,178 
U.S. government securities333,323 28 (5)333,346 
Total$446,479 $50 $(5)$446,524 
    
The amortized cost of investments classified as cash equivalents approximated the fair value due to the short-term nature of the investments.

The gross unrealized losses and fair values for those investments that were in an unrealized loss position as of December 31, 2021 and 2020, aggregated by investment category and the length of time that individual securities have been in a continuous loss position are as follows (in thousands):
December 31, 2021
Less than 12 monthsGreater than 12 monthsTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Short-term debt securities:
U.S. agency securities$29,994 $(7)$— $— $29,994 $(7)
U.S. government securities360,060 (191)— — 360,060 (191)
Total$390,054 $(198)$— $— $390,054 $(198)

December 31, 2020
Less than 12 monthsGreater than 12 monthsTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Short-term debt securities:
U.S. government securities$73,609 $(5)$— $— $73,609 $(5)
Total$73,609 $(5)$— $— $73,609 $(5)

The Company does not have any available for sale debt securities for which the Company has recorded credit related losses.

The contractual maturities of the Company's investments within customer funds as of December 31, 2021 are as follows (in thousands):
Amortized CostFair Value
Due in one year or less$390,253 $390,054 
Due in one to five years— — 
Total$390,253 $390,054 
v3.22.0.1
FAIR VALUE OF FINANCIAL INSTRUMENTS
 12 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
FAIR VALUE OF FINANCIAL INSTRUMENTS FAIR VALUE OF FINANCIAL INSTRUMENTS
The Company measures its cash equivalents, customer funds, short-term and long-term marketable debt securities, and marketable equity investment at fair value. The Company classifies these investments within Level 1 or Level 2 of the fair value hierarchy because the Company values these investments using quoted market prices or alternative pricing sources and models utilizing market observable inputs.
The Company’s financial assets and liabilities that are measured at fair value on a recurring basis are classified as follows (in thousands):
December 31, 2021December 31, 2020
Level 1Level 2Level 3Level 1Level 2Level 3
Cash Equivalents:
Money market funds$2,344,768 $— $— $1,694,736 $— $— 
U.S. agency securities— 22,999 — — 41,186 — 
Certificates of deposit— 4,983 — — — — 
Corporate bonds— 790 — — — — 
U.S. government securities— — — 15,000 — — 
Customer funds:
Money market funds2,126,579 — — 777,193 — — 
Reverse repurchase agreement72,119 — — 246,880 — — 
U.S. agency securities— 29,994 — — 160,478 — 
U.S. government securities360,060 — — 445,142 — — 
Short-term debt securities:
U.S. agency securities— 74,128 — — 154,004 — 
Certificates of deposit— 9,200 — — — — 
Corporate bonds— 293,319 — — 77,199 — 
Commercial paper— 36,088 — — 4,999 — 
Municipal securities— 5,548 — — 10,431 — 
U.S. government securities430,843 — 405,434 — — 
Foreign government securities— 20,157 — — 43,045 — 
Long-term debt securities:
U.S. agency securities— 153,320 — — 169,278 — 
Corporate bonds— 663,207 — — 176,014 — 
Municipal securities— 22,417 — — 1,060 — 
U.S. government securities674,476 — — 92,073 — — 
Foreign government securities— 13,010 — — 25,525 — 
Other:
Investment in marketable equity security— — — 376,258 — — 
Total$6,008,845 $1,349,160 $— $4,052,716 $863,219 $— 

The carrying amounts of certain financial instruments, including settlements receivable, loans held for investment, accounts payable, customers payable, accrued expenses and settlements payable, approximate their fair values due to their short-term nature.
The Company estimates the fair value of its convertible and senior notes based on their last actively traded prices (Level 1) or market observable inputs (Level 2). The estimated fair value and carrying value of the convertible and senior notes were as follows (in thousands):
December 31, 2021December 31, 2020
Carrying ValueFair Value (Level 2)Carrying ValueFair Value (Level 2)
2031 Senior Notes$986,774 $1,018,113 $— $— 
2026 Senior Notes987,626 994,579 — — 
2027 Convertible Notes567,208 614,286 458,496 644,000 
2026 Convertible Notes567,621 595,548 482,204 638,250 
2025 Convertible Notes990,361 1,477,302 858,332 1,912,440 
2023 Convertible Notes459,618 958,927 780,046 2,417,820 
2022 Convertible Notes455 3,192 7,846 80,731 
Total$4,559,663 $5,661,947 $2,586,924 $5,693,241 

The estimated fair value and carrying value of loans held for sale and loans held for investment is as follows (in thousands):
December 31, 2021December 31, 2020
Carrying ValueFair Value (Level 3)Carrying ValueFair Value (Level 3)
Loans held for sale$517,940 $574,982 $462,665 $467,805 
Loans held for investment91,447 95,746 — — 
Total$609,387 $670,728 $462,665 $467,805 
    
As of December 31, 2021, $364.8 million of the carrying value of loans held for sale was attributable to loans under the Paycheck Protection Program ("PPP"). The PPP was intended to provide relief to eligible businesses impacted by COVID-19, and to incentivize businesses to keep their workers on the payroll. These loans are guaranteed by the U.S. government and are eligible for forgiveness if the borrowers meet certain criteria. As the loans under the PPP qualify for forgiveness if certain criteria are met or are guaranteed by the U.S. government through the Small Business Administration ("SBA"), the related credit losses as of December 31, 2021 were immaterial. As of December 31, 2021, we had facilitated the issuance of $1.5 billion of loans in the aggregate under the program, of which we had sold $399.1 million to an investor. As of December 31, 2021, $725.9 million in PPP loans held for sale have been forgiven by the SBA, of which $679.6 million have been forgiven in the year ended December 31, 2021. Overall, for the year ended December 31, 2021, the Company recognized $96.2 million of revenue associated with PPP loans primarily as a result of forgiveness. The Company approved and funded the last of its remaining PPP applications upon exhaustion of the funds in the program on May 21, 2021.

For the years ended December 31, 2021, 2020, and 2019, the Company recorded incremental charges for the excess of amortized cost over the fair value of the loans of $6.4 million, $26.0 million, and $23.2 million, respectively. To determine the fair value of the loans held for sale, the Company utilizes discounted cash flow valuation modeling, taking into account the probability of default and estimated timing and amounts of periodic repayments. In estimating the expected timing and amounts of the future periodic repayments for the loans outstanding, the Company considered other relevant market data in developing such estimates and assumptions, including the continuing impact of the COVID-19 pandemic. With respect to PPP loans, the Company also considers the impact of government guarantees and loan forgiveness on the timing and amounts of future cash flows. As of December 31, 2021, there were no material changes to our estimates of fair value, and the Company will continue to evaluate facts and circumstances that could impact our estimates and affect our results of operations in future periods.
    
If applicable, the Company will recognize transfers into and out of levels within the fair value hierarchy at the end of the reporting period in which the actual event or change in circumstance occurs. During the years ended December 31, 2021, 2020 and 2019, the Company did not have any transfers in or out of Level 1, Level 2, or Level 3 assets or liabilities.
v3.22.0.1
LOANS HELD FOR INVESTMENT
 12 Months Ended
Dec. 31, 2021
Receivables [Abstract]  
LOANS HELD FOR INVESTMENT LOANS HELD FOR INVESTMENT
In April 2021, the Company began originating loans in the U.S. through its wholly-owned subsidiary bank, Square Financial Services. The Company sells the majority of the loans to institutional investors with a portion retained on its balance sheet. Loans retained by the Company are classified as held for investment as the Company has both the intent and ability to hold them for the foreseeable future, until maturity, or until payoff. The Company’s intent and ability in the future may change based on changes in business strategies, the economic environment, and market conditions. As of December 31, 2021, the Company held $91.4 million as loans held for investment, net of allowance, other current assets on the condensed consolidated balance sheet, see Note 11, Other Consolidated Balance Sheet Components.

Loans held for investment are recorded at amortized cost, less an allowance for potential uncollectible amounts. Amortized cost basis represents principal amounts outstanding, net of unearned income, unamortized deferred fees and costs on originated loans, premiums or discounts on purchased loans and charge-offs. The allowance for loan losses and amount of charge offs recorded as of December 31, 2021 were immaterial. There were no recoveries recorded as of December 31, 2021.

The Company considers loans that are greater than 60 days past due to be delinquent, and loans 90 days or more past due to be nonperforming. Loans that are 120 days or more past due are generally considered to be uncollectible and are written off. When a loan is identified as nonperforming, recognition of income is discontinued. Loans are restored to performing status after total overdue unpaid amounts are repaid and the Company has reasonable assurance that performance under the terms of the loan will continue. As of December 31, 2021, the amount of loans that were identified as nonperforming loans was immaterial.

The Company closely monitors economic conditions and loan performance trends to assess and manage its exposure to credit risk. The criteria the Company monitors when assessing the credit quality and risk of its loan portfolio is primarily based on internal risk ratings, as they provide insight into borrower risk profiles and are useful as indicators of potential future credit losses. Loans are internally rated as "Pass" rated or "Classified". Pass rated loans generally consist of loans that are current or up to 60 days past due. Classified loans generally comprise of loans that are 60 days or greater past due and have a higher risk of default. Internal risk ratings are reviewed and, generally, updated at least once a year. As of December 31, 2021, the amortized cost of Pass rated loans was $95.1 million and the amount of Classified loans was immaterial.
v3.22.0.1
PROPERTY AND EQUIPMENT, NET
 12 Months Ended
Dec. 31, 2021
Property, Plant and Equipment [Abstract]  
PROPERTY AND EQUIPMENT, NET PROPERTY AND EQUIPMENT, NETThe following is a summary of property and equipment, less accumulated depreciation and amortization (in thousands):
December 31,
2021		December 31,
2020
Leasehold improvements$208,228 $168,125 
Computer equipment174,004 139,174 
Capitalized software116,827 119,452 
Office furniture and equipment42,393 34,890 
Total541,452 461,641 
Less: Accumulated depreciation and amortization(259,312)(228,121)
Property and equipment, net$282,140 $233,520 
Depreciation and amortization expense on property and equipment was $94.2 million, $65.0 million, and $60.6 million, for the years ended December 31, 2021, 2020, and 2019, respectively.
v3.22.0.1
ACQUISITIONS
 12 Months Ended
Dec. 31, 2021
Business Combination and Asset Acquisition [Abstract]  
ACQUISITIONS ACQUISITIONS
Afterpay

    On January 31, 2022 (February 1, 2022 Australian Eastern Daylight Time), the Company completed the acquisition of Afterpay Limited (“Afterpay”), a global BNPL platform. In connection with the acquisition, the Company issued 113,387,895 shares of the Company’s Class A common stock with an aggregate fair value of $13.9 billion based on the closing price of the Company’s Class A common stock on the acquisition date. As of the completion of the acquisition, certain convertible notes with an outstanding principal amount of AU$ 1.5 billion (US$ 1.1 billion based on the closing exchange rate on the acquisition date), remained outstanding. As a result of the acquisition of Afterpay, the original holders of the convertible notes may require Afterpay to redeem some or all of the notes at 100% of their principal amount no later than March 4, 2022.

The acquisition meets the criteria to be accounted for as a business combination. This method requires, among other things, that assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date and that the difference between the fair value of the consideration paid for the acquired entity and the fair value of the net assets acquired be recorded as goodwill, which is not amortized but is tested at least annually for impairment. The Company is in the process of determining the fair values of purchase consideration transferred, as well as the fair values of tangible and intangible assets acquired and liabilities assumed.

TIDAL

On April 30, 2021, the Company acquired an 86.8% ownership interest in TIDAL, a global music and entertainment platform that brings fans and artists together through unique music, content, and experiences. The acquisition extends our purpose of economic empowerment to musicians. The Company has the option, but not the obligation, to acquire any portion of the remaining noncontrolling interest any time after a three year period has elapsed from the execution of the merger agreement at a price based on the fair value of TIDAL shares.
The purchase consideration was comprised of $223.1 million in cash and 41,138 shares of the Company’s Class A common stock with an aggregate fair value of $10.1 million based on the closing price of the Company’s Class A common stock on the acquisition date. Third-party acquisition-related costs were immaterial. The results of TIDAL’s operations have been included in the consolidated financial statements since the closing date.
The acquisition was accounted for as a business combination. This method requires, among other things, that assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date and that the difference between the fair value of the consideration paid for the acquired entity and the fair value of the net assets acquired be recorded as goodwill, which is not amortized but is tested at least annually for impairment.
The table below summarizes the consideration paid for TIDAL and the fair value of the assets acquired and liabilities assumed at the closing date (in thousands, except share data).
Consideration:
Cash$176,663 
Deferred consideration46,475 
Stock (41,138 shares of Class A common stock)
10,071 
$233,209 
Recognized amounts of identifiable assets acquired and liabilities assumed:
Current assets (inclusive of cash acquired of $12,358)
$29,621 
Intangible customer assets69,000 
Intangible technology assets29,000 
Intangible trade name35,000 
Intangible other assets8,000 
Other non-current assets33,443 
Accrued expenses and other current liabilities(67,789)
Other non-current liabilities(52,759)
Total identifiable net assets acquired83,516 
Noncontrolling interests(48,192)
Goodwill197,885 
Total$233,209 
Goodwill from the acquisition was primarily attributable to the value of expected synergies created by incorporating TIDAL product and operations into the Company's technology platform and the value of the assembled workforce. An estimated amount of approximately $70.7 million of the goodwill generated from the TIDAL acquisition and approximately $126.7 million of the acquired intangible assets are expected to be deductible for US tax purposes based on the preliminary values. Additionally, the acquisition would have resulted in the recognition of US deferred tax assets; however, the realization of such deferred tax assets depends primarily on the Company's ability, post-acquisition, to generate taxable income in future periods of which there is not sufficient evidence of such income as of December 31, 2021. Accordingly, a valuation allowance was recorded against the net acquired deferred tax asset in accounting for the acquisition.

Deferred consideration in the aggregate amount of $46.5 million primarily relates to pre-acquisition contingencies, and includes a portion of purchase consideration withheld, for a period of up to 4 years, as security for TIDAL's indemnification obligations related to general representations and warranties, in addition to certain potential exposures. The Company recognized certain liabilities for acquired pre-existing potential exposures, and an indemnification receivable in the amount of $22.8 million has been recorded related to such exposures in accordance with the terms of the indemnification agreement. The amounts have been determined in accordance with ASC 740, Income Taxes, and ASC 450, Contingencies.

The Company prepared an initial determination of the fair value of the assets acquired and liabilities assumed as of the acquisition date using preliminary information. Subsequently, the Company has recognized measurement period adjustments to the purchase consideration and the jurisdictional allocation of the fair value of certain assets and liabilities assumed as a result of further refinements in the Company’s estimates. The net effect of these adjustments on the preliminary purchase price allocation was an increase of $13.1 million in goodwill and deferred tax liabilities assumed.

In addition to the deferred consideration, an additional amount of $32.2 million in purchase consideration has been withheld related to defined post-acquisition activities. Because these amounts relate to post-acquisition activities, in accordance with ASC 805, Business Combinations, such amounts will be recognized as expenses in future periods, as incurred.

    The noncontrolling interest was recorded based on the fair value on the date of acquisition.

    The acquisition of TIDAL did not have a material impact on the Company's consolidated financial statements. Accordingly, pro forma financial information has not been presented.
Other Acquisitions
The Company completed certain acquisitions for a total consideration of $20.5 million, $126.7 million, and $25.2 million, during the years ended December 31, 2021, 2020, and 2019, respectively, which resulted in the recognition of additional intangible assets and goodwill. There were no material acquisitions during these periods therefore pro forma financial information has not been presented. None of the goodwill generated from the acquisitions or the acquired intangible assets are expected to be deductible for tax purposes.
v3.22.0.1
GOODWILL
 12 Months Ended
Dec. 31, 2021
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, 2019$266,345 
Acquisitions completed during the year ended December 31, 202049,571 
Other adjustments785 
Balance at December 31, 2020316,701 
Acquisitions completed during the year ended December 31, 2021203,079 
Other adjustments(504)
Balance at December 31, 2021$519,276 

Effective June 30, 2020, the Company changed its operating and reporting segments to reflect the manner in which the CODM reviews and assesses performance. Accordingly, the Company has two operating and reportable segments, which are Square and Cash App (defined further in Note 19, Segment and Geographical Information). The Company allocated $183.4 million and $112.4 million of the goodwill balance at June 30, 2020 to Square and Cash App, respectively. In addition, the Company completed an assessment of any potential goodwill impairment for the reporting units immediately before and after the reallocation and determined that no impairment existed as of June 30, 2020.

The change in carrying value of goodwill allocated to the reportable segments in the period was as follows (in thousands):
Cash AppSquareCorporate and OtherTotal
Balance as of June 30, 2020$112,389 $183,371 $— $295,760 
Acquisitions15,587 4,492 — 20,079 
Other adjustments862 — — 862 
Balance as of December 31, 2020128,838 187,863 — 316,701 
Acquisitions— 5,194 197,885 203,079 
Other adjustments(504)— — (504)
Balance as of December 31, 2021$128,334 $193,057 $197,885 $519,276 
Additionally, the Company performed its annual goodwill impairment assessment as of December 31, 2021. For purposes of completing the impairment test, the Company performs either a qualitative or a quantitative analysis on a reporting unit basis. Through qualitative analysis, the Company concluded that it was more likely than not that the fair value of the reporting units were greater than their carrying amounts. As a result, the two-step goodwill impairment test was not required, and no impairments of goodwill were recognized during the year ended December 31, 2021.
v3.22.0.1
ACQUIRED INTANGIBLE ASSETS
 12 Months Ended
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
ACQUIRED INTANGIBLE ASSETS ACQUIRED INTANGIBLE ASSETS
The following table presents the detail of acquired intangible assets as of the periods presented (in thousands):

Balance at December 31, 2021
Weighted Average Estimated Useful LifeCostAccumulated AmortizationNet
Technology assets5 years$164,977 $(65,619)$99,358 
Customer assets15 years128,316 (19,244)109,072 
Trade name9 years53,051 (14,169)38,882 
Other9 years13,743 (4,006)9,737 
Total$360,087 $(103,038)$257,049 

Balance at December 31, 2020
Weighted Average Estimated Useful LifeCostAccumulated AmortizationNet
Technology assets5 years$119,508 $(43,084)$76,424 
Customer assets11 years58,556 (10,796)47,760 
Trade name6 years18,529 (8,031)10,498 
Other8 years5,733 (2,803)2,930 
Total$202,326 $(64,714)$137,612 

All intangible assets are amortized over their estimated useful lives.

The changes to the carrying value of intangible assets were as follows (in thousands):
Year Ended December 31,
202120202019
Acquired intangible assets, net, beginning of the period$137,612 $69,079 $77,102 
Acquisitions159,100 85,960 14,559 
Amortization expense(40,522)(19,239)(15,000)
Sale of asset group— — (7,582)
Other adjustments859 1,812 — 
Acquired intangible assets, net, end of the period$257,049 $137,612 $69,079 

The estimated future amortization expense of intangible assets as of December 31, 2021 is as follows (in thousands):
2022$42,908 
202341,657 
202438,679 
202531,852 
202618,201 
Thereafter83,752 
Total$257,049 
v3.22.0.1
OTHER CONSOLIDATED BALANCE SHEET COMPONENTS (CURRENT)
 12 Months Ended
Dec. 31, 2021
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):
    
December 31,
2021		December 31,
2020
Inventory, net$77,058 $61,129 
Restricted cash18,778 30,279 
Processing costs receivable228,914 148,606 
Prepaid expenses63,341 34,279 
Accounts receivable, net89,702 41,960 
Loans held for investment, net of allowance for loan losses (i)91,447 — 
Other118,189 66,814 
Total$687,429 $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):
December 31,
2021		December 31,
2020
Accrued expenses$254,900 $126,710 
Accrued royalties53,616 — 
Accrued transaction losses (i)55,167 70,557 
Accounts payable82,173 47,089 
Deferred revenue, current48,462 44,908 
Current portion of long-term debt455 — 
Other144,536 71,586 
Total$639,309 $360,850 
(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.
The reconciliation of the beginning and ending accrued transaction losses is as follows:
Year Ended December 31,
20212020
Accrued transaction losses, beginning of the year$70,557 $34,771 
Provision for transaction losses63,436 109,399 
Charge-offs to accrued transaction losses(78,826)(73,613)
Accrued transaction losses, end of the year$55,167 $70,557 

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 $338.6 million and $264.3 million for the year ended December 31, 2021, and 2020, 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):
December 31,
2021		December 31,
2020
Investment in non-marketable equity securities (i)$81,919 $32,510 
Investment in marketable equity security (ii)— 376,258 
Investment in bitcoin, net (iii)149,000 50,000 
Restricted cash71,702 13,526 
Other67,914 26,956 
Total$370,535 $499,250 

(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 public 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 consolidated statement of operations. During the year ended December 31, 2021, the Company recorded a net loss of $12.4 million, arising from the revaluation of the non-marketable investments.

(ii) In December 2020, upon DoorDash's initial public offering, the shares of preferred stock held by the Company converted into Class A common stock of DoorDash. The investment was carried at fair value, with changes in fair value being recorded within other income or expense on the consolidated statement of operations. During the year ended December 31, 2021, the Company recorded a net gain of $44.4 million. In June 2021, the Company completed the sale of its remaining investment in DoorDash, which will have no further impact on the Company's results in future periods.

(iii) The Company invested $50.0 million and $170.0 million in bitcoin in the fourth quarter of 2020 and the first quarter of 2021, respectively. 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 recorded impairment losses of $71.1 million in the year ended December 31, 2021 due to the observed market price of bitcoin decreasing below the carrying value during the period. As of December 31, 2021, the fair value of the investment in bitcoin was $371.0 million based on observable market prices which is $222.1 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):
December 31,
2021		December 31,
2020
Statutory liabilities (i)$133,020 $75,370 
Other (ii)89,826 9,921 
Total$222,846 $85,291 

(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.

(ii) Other non-current liabilities includes deferred purchase consideration associated with the acquisition of TIDAL.
v3.22.0.1
OTHER CONSOLIDATED BALANCE SHEET COMPONENTS (NON-CURRENT)
 12 Months Ended
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
OTHER CONSOLIDATED BALANCE SHEET COMPONENTS (NON-CURRENT) OTHER CONSOLIDATED BALANCE SHEET COMPONENTS (CURRENT)
Other Current Assets

The following table presents the detail of other current assets (in thousands):
    
December 31,
2021		December 31,
2020
Inventory, net$77,058 $61,129 
Restricted cash18,778 30,279 
Processing costs receivable228,914 148,606 
Prepaid expenses63,341 34,279 
Accounts receivable, net89,702 41,960 
Loans held for investment, net of allowance for loan losses (i)91,447 — 
Other118,189 66,814 
Total$687,429 $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):
December 31,
2021		December 31,
2020
Accrued expenses$254,900 $126,710 
Accrued royalties53,616 — 
Accrued transaction losses (i)55,167 70,557 
Accounts payable82,173 47,089 
Deferred revenue, current48,462 44,908 
Current portion of long-term debt455 — 
Other144,536 71,586 
Total$639,309 $360,850 
(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.
The reconciliation of the beginning and ending accrued transaction losses is as follows:
Year Ended December 31,
20212020
Accrued transaction losses, beginning of the year$70,557 $34,771 
Provision for transaction losses63,436 109,399 
Charge-offs to accrued transaction losses(78,826)(73,613)
Accrued transaction losses, end of the year$55,167 $70,557 

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 $338.6 million and $264.3 million for the year ended December 31, 2021, and 2020, 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):
December 31,
2021		December 31,
2020
Investment in non-marketable equity securities (i)$81,919 $32,510 
Investment in marketable equity security (ii)— 376,258 
Investment in bitcoin, net (iii)149,000 50,000 
Restricted cash71,702 13,526 
Other67,914 26,956 
Total$370,535 $499,250 

(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 public 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 consolidated statement of operations. During the year ended December 31, 2021, the Company recorded a net loss of $12.4 million, arising from the revaluation of the non-marketable investments.

(ii) In December 2020, upon DoorDash's initial public offering, the shares of preferred stock held by the Company converted into Class A common stock of DoorDash. The investment was carried at fair value, with changes in fair value being recorded within other income or expense on the consolidated statement of operations. During the year ended December 31, 2021, the Company recorded a net gain of $44.4 million. In June 2021, the Company completed the sale of its remaining investment in DoorDash, which will have no further impact on the Company's results in future periods.

(iii) The Company invested $50.0 million and $170.0 million in bitcoin in the fourth quarter of 2020 and the first quarter of 2021, respectively. 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 recorded impairment losses of $71.1 million in the year ended December 31, 2021 due to the observed market price of bitcoin decreasing below the carrying value during the period. As of December 31, 2021, the fair value of the investment in bitcoin was $371.0 million based on observable market prices which is $222.1 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):
December 31,
2021		December 31,
2020
Statutory liabilities (i)$133,020 $75,370 
Other (ii)89,826 9,921 
Total$222,846 $85,291 

(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.

(ii) Other non-current liabilities includes deferred purchase consideration associated with the acquisition of TIDAL.
v3.22.0.1
INDEBTEDNESS
 12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
INDEBTEDNESS INDEBTEDNESS
Revolving Credit Facility

In May 2020, the Company entered into a revolving credit agreement with certain lenders, which provided a $500.0 million senior unsecured revolving credit facility (the "2020 Credit Facility") maturing in May 2023. On May 28, 2020, the Company amended the credit agreement for the 2020 Credit Facility (the "Credit Agreement") to permit the Company’s wholly owned subsidiary, Square Capital, LLC (“Square Capital”), to incur indebtedness in an aggregate principal amount of up to $500.0 million pursuant to the Paycheck Protection Program Liquidity Facility (“PPPLF”) authorized under the Federal Reserve Act of 1913. In connection with its convertible debt offerings in November 2020, the Company entered into a second amendment to the Credit Agreement on November 9, 2020 to permit convertible debt in an aggregate principal amount not to exceed $3.6 billion. On January, 28, 2021, the Company entered into a third amendment to the Credit Agreement to increase the amount of indebtedness that Square Capital is permitted to incur pursuant to the PPPLF from an aggregate principal amount of up to $500.0 million to an aggregate principal amount of up to $1.0 billion. On May 25, 2021, the Company entered into a fourth amendment to the Credit Agreement to, among other things, extend the maturity date of the loans advanced to May 1, 2024. The Credit Agreement also contains a financial covenant that requires the Company to maintain a quarterly minimum liquidity amount (consisting of the sum of Unrestricted cash and Cash Equivalents plus Marketable Securities, each as defined in the Credit Agreement) of at least $250.0 million, tested on a quarterly basis. The Company is obligated to pay customary fees for a credit facility of this size and type including a commitment fee of 0.15% per annum on the undrawn portion available under the 2020 Credit Facility. To date no funds have been drawn and no letters of credit have been issued under the 2020 Credit Facility. As of December 31, 2021, $500.0 million remained available for draw. The Company incurred $0.8 million and $0.7 million in commitment fees during the years ended December 31, 2021 and 2020, respectively. As of December 31, 2021, the Company was in compliance with all financial covenants associated with the 2020 Credit Facility.

Loans under the 2020 Credit Facility bear interest at the Company's option of (i) a base rate based on the highest of the prime rate, the federal funds rate plus 0.50%, and the adjusted LIBOR rate plus 1.00%, in each case, plus a margin ranging from 0.25% to 0.75% or (ii) an adjusted LIBOR rate plus a margin ranging from 1.25% to 1.75%. The Credit Agreement includes provisions allowing the Company to replace or update LIBOR with a replacement rate. The margin is determined based on the Company’s total leverage ratio, as defined in the Credit Agreement. The Credit Agreement also contains customary affirmative and negative covenants typical for a financing of this type that, among other things, restricts the Company and certain of its subsidiaries’ ability to incur additional indebtedness, create liens, merge or consolidate or make certain dispositions, pay dividends and make distributions, enter into restrictive agreements, enter into agreements with affiliates, and make certain investments and acquisitions.
Paycheck Protection Program Liquidity Facility
On June 2, 2020, Square Capital was approved to borrow under the PPPLF with the Federal Reserve Bank of San Francisco (“First PPPLF Agreement”), at an annual interest rate of 0.35%. The PPPLF extends credit to eligible financial institutions that have originated or purchased PPP loans. Advances under the PPPLF are non-recourse and are secured by a pledge of PPP loans held by Square Capital. The maturity date of any PPPLF loan will be the maturity date of the PPP loans pledged to secure such PPPLF loan. The maturity date of any PPPLF loan will be accelerated on and to the extent of (i) the date of any loan forgiveness reimbursement by the SBA for any PPP loan securing such PPPLF loan; or (ii) the date of purchase by the SBA from Square Capital of any PPP loan securing such PPPLF loan to realize on the SBA’s guarantee of such PPP loan. The maturity date of all PPPLF loans shall be accelerated upon the occurrence of certain events of default by Square Capital, including but not limited to the failure to comply with a requirement of the PPPLF agreement or any representation, warranty, or covenant of Square Capital under the PPPLF agreement being inaccurate on or as of the date it is deemed to be made or on any date on which an PPPLF loan remains outstanding. The Company can also at its option prepay the advances in full or in part without penalty. Square Capital also shall prepay PPPLF loans so that the amount of any PPPLF loans outstanding does not exceed the outstanding amount of PPP loans pledged to secure such PPPLF loans.

On January 29, 2021, Square Capital entered into a second PPPLF agreement with the Federal Reserve Bank of San Francisco (“Second PPPLF Agreement”) to secure additional credit collateralized by loans from the subsequent rounds of the PPP program in an aggregate principal amount of up to $1.0 billion under both PPPLF agreements. As of December 31, 2021, $497.5 million of PPPLF advances were outstanding and are, generally, collateralized by the same value of PPP loans. Any differences between the amounts are generally due to the timing of PPP loan repayment or forgiveness, and repayment of PPPLF advances.

Senior Unsecured Notes due in 2026 and 2031

On May 20, 2021, the Company issued an aggregate principal amount of $2.0 billion senior unsecured notes comprised of $1.0 billion of senior unsecured notes due 2026 ("2026 Senior Notes") and $1.0 billion senior unsecured notes due 2031 ("2031 Senior Notes" and, together with the 2026 Senior Notes, the “Senior Notes”). The 2026 Senior Notes mature on June 1, 2026, unless earlier redeemed or repurchased, and bear interest a rate of 2.75% payable semi-annually on June 1 and December 1 of each year. The 2031 Senior Notes mature on June 1, 2031, unless earlier redeemed or repurchased, and bear interest at a rate of 3.50% payable semi-annually on June 1 and December 1 of each year. The Senior Notes are subject to optional redemption provisions. At any time prior to May 1, 2026, in the case of the 2026 Senior Notes, and March 1, 2031, in the case of the 2031 Senior Notes, the Company may redeem the applicable series in whole or part at a price equal to 100% of the principal amount of the notes to be redeemed plus an applicable premium and accrued and unpaid interest, if any, to but excluding the redemption date. The applicable premium for any note is the greater of: (1) 1.0% of the principal amount of such note, and (2) the excess, if any, of (a) the present value at the redemption date of all scheduled payments of interest plus principal on such note (excluding accrued but unpaid interest, if any, to, but excluding, the redemption date) computed using a discount rate equal to the Treasury Rate as of such redemption date plus 50 basis points, over (b) the principal amount of such note. At any time on or after May 1, 2026, in the case of the 2026 Senior Notes, and March 1, 2031, in the case of the 2031 Senior Notes, the Company may redeem the notes of the applicable series in whole or part at a price of 100% of the principal amount of the notes to be redeemed plus accrued and unpaid interest, if any, to but excluding the redemption date. If the Company experiences a change of control triggering event (as defined in the applicable indenture governing the applicable Senior Notes), the Company must offer to repurchase each series of Senior Notes at a repurchase price equal to 101% of the principal amount of the applicable notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the applicable repurchase date. In the event of default, the trustee or holders of at least 25% in aggregate principal amount of the applicable series of outstanding Senior Notes under the applicable indenture may declare all of the notes of the applicable series to be due and immediately payable. If the event of default is the result of specified events of bankruptcy, insolvency or reorganization, all of the notes of the applicable series will become due without any declaration or action by the trustee or holders. If there is a default in the payment of interest, the Company shall pay the defaulted interest plus, to the extent lawful, interest payable on the defaulted interest at the rate provided in the Senior Notes.
Debt issuance costs related     to the 2026 Senior Notes and 2031 Senior Notes were comprised of discounts and commissions payable to the initial purchasers of $22.5 million and third party offering costs of $5.7 million. Issuance costs are amortized to interest expense using the effective interest method at an effective interest rate of 3.06% and 3.69% for each of the respective terms of the 2026 Senior Notes and 2031 Senior Notes, respectively.

Convertible Notes due in 2026 and 2027

On November 13, 2020, the Company issued an aggregate principal amount of $1.15 billion of convertible senior notes comprised of $575.0 million of convertible senior notes due 2026 ("2026 Convertible Notes") and $575.0 million of convertible senior notes due 2027 ("2027 Convertible Notes"). The 2026 Convertible Notes mature on May 1, 2026, unless earlier converted or repurchased, and bears a zero rate of interest. The 2027 Convertible Notes mature on November 1, 2027, unless earlier converted or repurchased, and bear interest at a rate of 0.25% payable semi-annually on May 1 and November 1 of each year. Both the 2026 Convertible Notes and 2027 Convertible Notes are convertible at an initial conversion rate of 3.3430 shares of the Company's Class A common stock per $1,000 principal amount, which is equivalent to an initial conversion price of approximately $299.13 per share of Class A common stock. Holders may convert their relevant series of notes at any time prior to the close of business on the business day immediately preceding February 1, 2026 and August 1, 2027 for the 2026 Convertible Notes and 2027 Convertible Notes, respectively, only under the following circumstances: (1) during any calendar quarter, commencing after the calendar quarter ending on March 31, 2021 (and only during such calendar quarter), if the last reported sale price of the Company’s Class A common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period (the "measurement period") in which the trading price (as defined in the indenture governing the 2026 Convertible Notes and 2027 Convertible Notes) per $1,000 principal amount of 2026 Convertible Notes and 2027 Convertible Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s Class A common stock and the conversion rate on each such trading day; (3) if the Company calls any or all of the 2026 Convertible Notes and 2027 Convertible Notes for redemption, such relevant series of notes called for redemption may be converted at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate events, including certain distributions, the occurrence of a fundamental change (as defined in the indenture governing the 2026 Convertible Notes and 2027 Convertible Notes) or a transaction resulting in the Company’s Class A common stock converting into other securities or property or assets. In addition, upon occurrence of the specified corporate events prior to the maturity date, the Company would increase the conversion rate for a holder who elects to convert their relevant series of notes in connection with such an event in certain circumstances. On or after February 1, 2026 in the case of the 2026 Convertible Notes, and on or after August 1, 2027 in the case of the 2027 Convertible Notes, up until the close of business on the second scheduled trading day immediately preceding the maturity date, a holder of the relevant series of notes may convert all or any portion of its 2026 Convertible Notes or 2027 Convertible Notes regardless of the foregoing circumstances. Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of its Class A common stock, or a combination of cash and shares of its Class A common stock, at the Company’s election. The circumstances required to allow the holders to convert their 2026 Convertible Notes and 2027 Convertible Notes were not met during the year ended December 31, 2021. On or after November 5, 2023 for the 2026 Convertible Notes, and on or after November 5, 2024 for the 2027 Convertible Notes, the Company may redeem all or a portion of each series of convertible notes for cash at its option, if the last reported sale price of the Company's Class A common stock has been at least 130% of the conversion price for the relevant series of notes then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption at a redemption price equal to 100% of the principal amount of the 2026 Convertible Notes and 2027 Convertible Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date.

In accounting for the issuance of the 2026 Convertible Notes and 2027 Convertible Notes, prior to the adoption of ASU No. 2020-06, the Company separated the relevant series of convertible notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of a similar debt instrument that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was $198.0 million and was determined by deducting the fair value of the liability component from the par value of the 2026 Convertible Notes and the 2027 Convertible Notes. The equity component was not re-measured as long as it continued to meet the conditions for equity classification. The excess of the principal amount of the liability component over its carrying amount ("debt discount") was amortized to interest expense at an effective interest rate of 3.35% and 3.66% for the 2026 Convertible Notes and 2027 Convertible Notes, respectively. Upon adoption of ASU No. 2020-06 on January 1, 2021, the
Company reversed the separation of the debt and equity components and accounted for the Notes wholly as debt. The Company also reversed the amortization of the debt discount, with a cumulative adjustment to retained earnings on the adoption date.

Debt issuance costs related to the 2026 Convertible Notes and 2027 Convertible Notes were comprised of discounts and commissions payable to the initial purchasers of $17.5 million and third party offering costs of $1.0 million. Prior to the adoption of ASU No. 2020-06, the Company allocated the total amount incurred to the liability and equity components of the 2026 Convertible Notes and 2027 Convertible Notes based on their relative values. Issuance costs attributable to the liability component were $15.4 million and were amortized to interest expense using the effective interest method. Issuance costs attributable to the equity component were netted with the equity component in stockholders’ equity. Upon adoption of ASU No. 2020-06 on January 1, 2021, the Company reversed the allocation of the issuance costs to the equity component and accounted for the entire amount as debt issuance cost that will be amortized as interest expense at an effective interest rate of 0.49% and 0.30% for each of the respective terms of the 2026 Convertible Notes and 2027 Convertible Notes, respectively, with a cumulative adjustment to retained earnings on the adoption date.

Upon adoption of ASU No. 2020-06, the difference between the estimated fair value and the carrying value upon conversion is accounted for as a reduction to the related debt issuance costs, with the remainder recognized as additional paid in capital to reflect the par value of the shares issued. As of December 31, 2021, there has been no principal converted on either the 2026 Convertible Notes or 2027 Convertible Notes.

As of December 31, 2021, the if-converted value of the 2026 Convertible Notes and 2027 Convertible Notes did not exceed the outstanding principal amount.
Convertible Notes due in 2025

On March 5, 2020, the Company issued an aggregate principal amount of $1.0 billion of convertible senior notes ("2025 Convertible Notes"). The 2025 Convertible Notes mature on March 1, 2025, unless earlier converted or repurchased, and bear interest at a rate of 0.1250% payable semi-annually on March 1 and September 1 of each year. The 2025 Convertible Notes are convertible at an initial conversion rate of 8.2641 shares of the Company's Class A common stock per $1,000 principal amount of 2025 Convertible Notes, which is equivalent to an initial conversion price of approximately $121.01 per share of Class A common stock. Holders may convert their 2025 Convertible Notes at any time prior to the close of business on the business day immediately preceding December 1, 2024 only under the following circumstances: (1) during any calendar quarter, commencing after the calendar quarter ending on June 30, 2020 (and only during such calendar quarter), if the last reported sale price of the Company’s Class A common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period (the "measurement period") in which the trading price (as defined in the indenture governing the 2025 Convertible Notes) per $1,000 principal amount of 2025 Convertible Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s Class A common stock and the conversion rate on each such trading day; (3) if the Company calls any or all of the 2025 Convertible Notes for redemption, such 2025 Convertible Notes called for redemption may be converted at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate events, including certain distributions, the occurrence of a fundamental change (as defined in the indenture governing the 2025 Convertible Notes) or a transaction resulting in the Company’s Class A common stock converting into other securities or property or assets. In addition, upon occurrence of the specified corporate events prior to the maturity date, the Company would increase the conversion rate for a holder who elects to convert their 2025 Convertible Notes in connection with such an event in certain circumstances. On or after December 1, 2024, up until the close of business on the second scheduled trading day immediately preceding the maturity date, a holder may convert all or any portion of its 2025 Convertible Notes regardless of the foregoing circumstances. Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of its Class A common stock, or a combination of cash and shares of its Class A common stock, at the Company’s election. The Company may redeem for cash all or any part of the 2025 Convertible Notes, at its option, on or after March 5, 2023, if the last reported sale price of the Company's Class A common stock has been at least 130% of the conversion price for the 2025 Convertible Notes then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption at a redemption price equal to 100% of the principal amount of the 2025 Convertible Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. The circumstances to allow the holders to convert their 2025 Convertible Notes were met in the first quarter of 2021.

In accounting for the issuance of the 2025 Convertible Notes, prior to the adoption of ASU No. 2020-06, the Company separated the 2025 Convertible Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of a similar debt instrument that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was $154.6 million and was determined by deducting the fair value of the liability component from the par value of the 2025 Convertible Notes. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. The excess of the principal amount of the liability component over its carrying amount ("debt discount") is amortized to interest expense over the term of the 2025 Convertible Notes at an effective interest rate of 3.81% over the contractual terms of the 2025 Convertible Notes. Upon adoption of ASU No. 2020-06 on January 1, 2021, the Company reversed the separation of the debt and equity components and accounted for the 2025 Convertible Notes wholly as debt. The Company also reversed the amortization of the debt discount, with a cumulative adjustment to retained earnings on the adoption date.

Debt issuance costs related to the 2025 Convertible Notes were comprised of discounts and commissions payable to the initial purchasers of $14.3 million and third party offering costs of $0.9 million. Prior to the adoption of ASU No. 2020-06, the Company allocated the total amount incurred to the liability and equity components of the 2025 Convertible Notes based on their relative values. Issuance costs attributable to the liability component were $12.8 million and will be amortized to interest expense using the effective interest method over the contractual term. Issuance costs attributable to the equity component were netted with the equity component in stockholders’ equity. Upon adoption of ASU No. 2020-06 on January 1, 2021, the Company reversed the allocation of the issuance costs to the equity component and accounted for the
entire amount as debt issuance cost that will be amortized as interest expense over the remaining term at an effective interest rate of 0.43% for the 2025 Convertible Notes with a cumulative adjustment to retained earnings on the adoption date.

Upon adoption of ASU No. 2020-06, the difference between the estimated fair value and the carrying value upon conversion is accounted for as a reduction to the related debt issuance costs, with the remainder recognized as additional paid in capital to reflect the par value of the shares issued. As of December 31, 2021, there has been no principal converted on the 2025 Convertible Notes.

As of December 31, 2021, the if-converted value of the 2025 Convertible Notes exceeded the outstanding principal amount by $334.7 million.

Convertible Notes due in 2023

On May 25, 2018, the Company issued an aggregate principal amount of $862.5 million of convertible senior notes ("2023 Convertible Notes"). The 2023 Convertible Notes mature on May 15, 2023, unless earlier converted or repurchased, and bear interest at a rate of 0.50% payable semi-annually on May 15 and November 15 of each year. The 2023 Convertible Notes are convertible at an initial conversion rate of 12.8456 shares of the Company's Class A common stock per $1,000 principal amount of 2023 Convertible Notes, which is equivalent to an initial conversion price of approximately $77.85 per share of Class A common stock. Holders may convert their 2023 Convertible Notes at any time prior to the close of business on the business day immediately preceding February 15, 2023 only under the following circumstances: (1) during any calendar quarter (and only during such calendar quarter), if the last reported sale price of the Company’s Class A common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period (the "measurement period") in which the trading price (as defined in the indenture governing the 2023 Convertible Notes) per $1,000 principal amount of 2023 Convertible Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s Class A common stock and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events, including certain distributions, the occurrence of a fundamental change (as defined in the indenture governing the 2023 Convertible Notes) or a transaction resulting in the Company’s Class A common stock converting into other securities or property or assets. On or after February 15, 2023, up until the close of business on the second scheduled trading day immediately preceding the maturity date, a holder may convert all or any portion of its 2023 Convertible Notes regardless of the foregoing circumstances. Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of its Class A common stock, or a combination of cash and shares of its Class A common stock, at the Company’s election. The circumstances to allow the holders to convert their 2023 Convertible Notes were met in the fourth quarter of 2020 and continued to be met through December 31, 2021. As of December 31, 2021, certain holders of the 2023 Convertible Notes have converted an aggregate principal amount of $401.9 million of their 2023 Convertible Notes, all of which was converted during the twelve months ended December 31, 2021. The Company has settled the conversions through the issuance of 5.2 million shares of the Company's Class A common stock.

In accounting for the issuance of the 2023 Convertible Notes, prior to the adoption of ASU No. 2020-06, the Company separated the 2023 Convertible Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of a similar debt instrument that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was $155.3 million and was determined by deducting the fair value of the liability component from the par value of the 2023 Convertible Notes. The equity component is not re-measured as long as it continues to meet the conditions for equity classification. The excess of the principal amount of the liability component over its carrying amount ("debt discount") is amortized to interest expense over the term of the 2023 Convertible Notes at an effective interest rate of 4.69% over the contractual terms of the 2023 Convertible Notes. Upon adoption of ASU No. 2020-06 on January 1, 2021, the Company reversed the separation of the debt and equity components and accounted for the 2023 Convertible Notes wholly as debt. The Company also reversed the amortization of the debt discount, with a cumulative adjustment to retained earnings on the adoption date.

Debt issuance costs related to the 2023 Convertible Notes comprised of discounts and commissions payable to the initial purchasers of $6.0 million and third party offering costs of $0.8 million. Prior to the adoption of ASU No. 2020-06, the Company allocated the total amount incurred to the liability and equity components of the 2023 Convertible Notes based on their relative values. Issuance costs attributable to the liability component were $5.6 million and will be amortized to interest expense using the effective interest method over the contractual term. Issuance costs attributable to the equity component were netted with the equity component in stockholders’ equity. Upon adoption of ASU No. 2020-06 on January 1, 2021, the
Company reversed the allocation of the issuance costs to the equity component and accounted for the entire amount as debt issuance cost that will be amortized as interest expense over the remaining term at an effective interest rate of 0.66% for the 2023 Convertible Notes with a cumulative adjustment to retained earnings on the adoption date.

Upon adoption of ASU No. 2020-06, the difference between the estimated fair value and the carrying value upon conversion is accounted for as a reduction to the related debt issuance costs, with the remainder recognized as additional paid in capital to reflect the par value of the shares issued.

As of December 31, 2021, the if-converted value of the 2023 Convertible Notes exceeded the outstanding principal amount by $495.0 million.

Convertible Notes due in 2022

On March 6, 2017, the Company issued an aggregate principal amount of $440.0 million of convertible senior notes ("2022 Convertible Notes"). The 2022 Convertible Notes mature on March 1, 2022, unless earlier converted or repurchased, and bear interest at a rate of 0.375% payable semi-annually on March 1 and September 1 of each year. The 2022 Convertible Notes are convertible at an initial conversion rate of 43.5749 shares of the Company's Class A common stock per $1,000 principal amount of 2022 Convertible Notes, which is equivalent to an initial conversion price of approximately $22.95 per share of Class A common stock. Holders may convert their 2022 Convertible Notes at any time prior to the close of business on the business day immediately preceding December 1, 2021 only under the following circumstances: (1) during any calendar quarter (and only during such calendar quarter), if the last reported sale price of the Company’s Class A common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period (the "measurement period") in which the trading price (as defined in the indenture governing the 2022 Convertible Notes) per $1,000 principal amount of 2022 Convertible Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s Class A common stock and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events, including certain distributions, the occurrence of a fundamental change (as defined in the indenture governing the 2022 Convertible Notes) or a transaction resulting in the Company’s Class A common stock converting into other securities or property or assets. On or after December 1, 2021, up until the close of business on the second scheduled trading day immediately preceding the maturity date, a holder may convert all or any portion of its 2022 Convertible Notes regardless of the foregoing circumstances. Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of its Class A common stock, or a combination of cash and shares of its Class A common stock, at the Company’s election. The circumstances required to allow the holders to convert their 2022 Convertible Notes were met in the fourth quarter of 2017 and continued to be met through December 31, 2021. As of December 31, 2021, certain holders of the 2022 Convertible Notes have converted an aggregate principal amount of $439.5 million of their 2022 Convertible Notes, of which $8.1 million was converted during the twelve months ended December 31, 2021. The Company has settled the conversions through a combination of $219.4 million in cash and issuance of 16.5 million shares of the Company's Class A common stock. The conversions during the twelve months ended December 31, 2021 were settled entirely in shares of the Company's Class A common stock.

In accounting for the issuance of the 2022 Convertible Notes, prior to the adoption of ASU No. 2020-06, the Company separated the 2022 Convertible Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of a similar debt instrument that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was $86.2 million and was determined by deducting the fair value of the liability component from the par value of the 2022 Convertible Notes. The equity component is not re-measured as long as it continues to meet the conditions for equity classification. The debt discount is amortized to interest expense over the term of the 2022 Convertible Notes at an effective interest rate of 5.34% over the contractual terms of the 2022 Convertible Notes. Upon adoption of ASU No. 2020-06 on January 1, 2021, the Company reversed the separation of the debt and equity components and accounted for the 2022 Convertible Notes wholly as debt. The Company also reversed the amortization of the debt discount, with a cumulative adjustment to retained earnings on the adoption date.

Debt issuance costs related to the 2022 Convertible Notes comprised of discounts and commissions payable to the initial purchasers of $11.0 million and third party offering costs of $0.8 million. Prior to the adoption of ASU No. 2020-06, the Company allocated the total amount incurred to the liability and equity components of the 2022 Convertible Notes based on their relative values. Issuance costs attributable to the liability component were $9.4 million and will be amortized to
interest expense using the effective interest method over the contractual term. Issuance costs attributable to the equity component were netted with the equity component in stockholders’ equity. Upon adoption of ASU No. 2020-06 on January 1, 2021, the Company reversed the allocation of the issuance costs to the equity component and accounted for the entire amount as debt issuance cost that will be amortized as interest expense over the remaining term at an effective interest rate of 0.93% for the 2022 Convertible Notes with a cumulative adjustment to retained earnings on the adoption date.

Prior to the adoption of ASU No. 2020-06, the debt component associated with the 2022 Convertible Notes that were converted was accounted for as an extinguishment of debt, with the Company recording loss on extinguishment as the difference between the estimated fair value and the carrying value of such 2022 Convertible Notes. The equity component associated with the 2022 Convertible Notes that were converted was accounted for as a reacquisition of equity upon the conversion of such 2022 Convertible Notes. Upon adoption of ASU No. 2020-06, the difference between the estimated fair value and the carrying value upon conversion is accounted for as a reduction to the related debt issuance costs, with the remainder recognized as additional paid in capital to reflect the par value of the shares issued. There no longer is a gain or loss on extinguishment of debt recognized upon conversion, as the debt is settled in equity.

As of December 31, 2021, the if-converted value of the 2022 Convertible Notes exceeded the outstanding principal amount by $2.7 million.
The net carrying amount of the Notes were as follows (in thousands):
Principal outstandingUnamortized debt issuance costsNet carrying value
December 31, 2021
2031 Senior Notes$1,000,000 $(13,226)$986,774 
2026 Senior Notes1,000,000 (12,374)987,626 
2027 Convertible Notes575,000 (7,792)567,208 
2026 Convertible Notes575,000 (7,379)567,621 
2025 Convertible Notes1,000,000 (9,639)990,361 
2023 Convertible Notes460,630 (1,012)459,618 
2022 Convertible Notes455 — 455 
Total$4,611,085 $(51,422)$4,559,663 

As discussed above, upon the adoption of ASU No. 2020-06, the Company reversed the separation of the debt and equity components of the Convertible Notes, and accounted for the Convertible Notes wholly as debt. Additionally, the issuance costs of the Notes were accounted for as debt issuance costs in its entirety. Refer to Note 1, Description of Business and Summary of Significant Accounting Policies for further details on the impact of adoption.

Principal outstandingUnamortized debt discountUnamortized debt issuance costsNet carrying value
December 31, 2020
2027 Convertible Notes$575,000 $(109,134)$(7,370)$458,496 
2026 Convertible Notes575,000 (85,085)(7,711)482,204 
2025 Convertible Notes1,000,000 (130,335)(11,333)858,332 
2023 Convertible Notes862,500 (79,980)(2,474)780,046 
2022 Convertible Notes8,545 (629)(70)7,846 
Total$3,021,045 $(405,163)$(28,958)$2,586,924 

     
The net carrying amount of the equity component of the Convertible Notes as of December 31, 2020 were as follows (in thousands):
Amount allocated to conversion optionLess: allocated issuance costsEquity component, net
December 31, 2020
2027 Convertible Notes$111,000 $(1,793)$109,207 
2026 Convertible Notes87,000 (1,405)85,595 
2025 Convertible Notes154,600 (2,342)152,258 
2023 Convertible Notes155,250 (1,231)154,019 
2022 Convertible Notes1,674 (45)1,629 
Total$509,524 $(6,816)$502,708 
The Company recognized interest expense on the Notes as follows (in thousands, except for percentages):
Year Ended December 31,
202120202019
Contractual interest expense$44,141 $6,078 $5,108 
Amortization of debt discount and issuance costs (i)9,823 67,979 39,139 
Total$53,964 $74,057 $44,247 

(i) Upon adoption of ASU No. 2020-06, the debt discount associated with the equity component on convertible debt outstanding was reversed which resulted in a decrease in the amount of non-cash interest expense to be recognized going forward.

Prior to the adoption of ASU No. 2020-06, the effective interest rate for the 2027 Convertible Notes, 2026 Convertible Notes, 2025 Convertible Notes, 2023 Convertible Notes, and 2022 Convertible Notes was 3.66%, 3.35%, 3.81%, 4.69% and 5.34%, respectively. After the adoption of ASU No. 2020-06, the effective interest rates for the 2027 Convertible Notes, 2026 Convertible Notes, 2025 Convertible Notes, 2023 Convertible Notes, and 2022 Convertible Notes are 0.30%, 0.49%, 0.43%, 0.66%, and 0.93%, respectively.

Convertible Note Hedge and Warrant Transactions

In connection with the offering of the 2027 Convertible Notes, the Company entered into convertible note hedge transactions ("2027 convertible note hedges") with certain financial institution counterparties ("2027 Convertible Notes Counterparties") whereby the Company has the option to purchase a total of approximately 1.92 million shares of its Class A common stock at a price of approximately $299.13 per share. The total cost of the 2027 convertible note hedge transactions was $104.3 million. In addition, the Company sold warrants ("2027 warrants") to the 2027 Convertible Notes Counterparties whereby the 2027 Convertible Notes Counterparties have the option to purchase a total of 1.92 million shares of the Company’s Class A common stock at a price of approximately $414.18 per share for the 2027 warrants. The Company received $68.0 million in cash proceeds from the sale of the 2027 warrants. Taken together, the purchase of the 2027 convertible note hedges and sale of the 2027 warrants are intended to reduce dilution from the conversion of the 2027 Convertible Notes and/or offset any cash payments the Company is required to make in excess of the principal amount of the converted 2027 Convertible Notes, as the case may be, and to effectively increase the overall conversion price from approximately $299.13 per share to approximately $414.18 per share for the 2027 warrants. As these instruments are considered indexed to the Company's own stock and are considered equity classified, the 2027 convertible note hedges and 2027 warrants are recorded in stockholders’ equity, are not accounted for as derivatives and are not re-measured each reporting period. The net costs incurred in connection with the 2027 convertible note hedges and 2027 warrant transactions were recorded as a reduction to additional paid-in capital on the condensed consolidated balance sheets.

In connection with the offering of the 2026 Convertible Notes, the Company entered into convertible note hedge transactions ("2026 convertible note hedges") with certain financial institution counterparties ("2026 Convertible Notes Counterparties") whereby the Company has the option to purchase a total of approximately 1.92 million shares of its Class A common stock at a price of approximately $299.13 per share. The total cost of the 2026 convertible note hedges was $84.6 million. In addition, the Company sold warrants ("2026 warrants") to the 2026 Convertible Notes Counterparties whereby the 2026 Convertible Notes Counterparties have the option to purchase a total of 1.92 million shares of the Company’s Class A common stock at a price of approximately $368.16 per share for the 2026 warrants. The Company received $64.6 million in cash proceeds from the sale of the 2026 warrants. Taken together, the purchase of the 2026 convertible note hedges and sale of the 2026 warrants are intended to reduce dilution from the conversion of the 2026 Convertible Notes and/or offset any cash payments the Company is required to make in excess of the principal amount of the converted 2026 Convertible Notes, as the case may be, and to effectively increase the overall conversion price from approximately $299.13 per share to approximately $368.16 per share for the 2026 warrants. As these instruments are considered indexed to the Company's own stock and are considered equity classified, the 2026 convertible note hedges and 2026 warrants are recorded in stockholders’ equity, are not accounted for as derivatives and are not remeasured each reporting period. The net costs incurred in connection with the 2026 convertible note hedges and 2026 warrants were recorded as a reduction to additional paid-in capital on the condensed consolidated balance sheets.
In connection with the offering of the 2025 Convertible Notes, the Company entered into convertible note hedge transactions ("2025 convertible note hedges") with certain financial institution counterparties ("2025 Convertible Notes Counterparties") whereby the Company has the option to purchase a total of approximately 8.26 million shares of its Class A common stock at a price of approximately $121.01 per share. The total cost of the 2025 convertible note hedges was $149.2 million. In addition, the Company sold warrants ("2025 warrants") to the 2025 Convertible Notes Counterparties whereby the 2025 Convertible Notes Counterparties have the option to purchase a total of 8.26 million shares of the Company’s Class A common stock at a price of approximately $161.34 per share. The Company received $99.5 million in cash proceeds from the sale of the 2025 warrants. Taken together, the purchase of the 2025 convertible note hedges and sale of the 2025 warrants are intended to reduce dilution from the conversion of the 2025 Convertible Notes and/or offset any cash payments the Company is required to make in excess of the principal amount of the converted 2025 Convertible Notes, as the case may be, and to effectively increase the overall conversion price from approximately $121.01 per share to approximately $161.34 per share. As these instruments are considered indexed to the Company's own stock and are considered equity classified, the 2025 convertible note hedges and 2025 warrants are recorded in stockholders’ equity, are not accounted for as derivatives and are not remeasured each reporting period. The net costs incurred in connection with the 2025 convertible note hedges and 2025 warrants were recorded as a reduction to additional paid-in capital on the condensed consolidated balance sheets.

In connection with the offering of the 2023 Convertible Notes, the Company entered into convertible note hedge transactions ("2023 convertible note hedges") with certain financial institution counterparties ("2018 Counterparties") whereby the Company has the option to purchase a total of approximately 11.1 million shares of its Class A common stock at a price of approximately $77.85 per share. The total cost of the 2023 convertible note hedges was $172.6 million. In addition, the Company sold warrants ("2023 warrants") to the 2018 Counterparties whereby the 2018 Counterparties have the option to purchase a total of 11.1 million shares of the Company’s Class A common stock at a price of approximately $109.26 per share. The Company received $112.1 million in cash proceeds from the sale of the 2023 warrants. Taken together, the purchase of the 2023 convertible note hedges and sale of the 2023 warrants are intended to reduce dilution from the conversion of the 2023 Convertible Notes and/or offset any cash payments the Company is required to make in excess of the principal amount of the converted 2023 Convertible Notes, as the case may be, and to effectively increase the overall conversion price from approximately $77.85 per share to approximately $109.26 per share. As these instruments are considered indexed to the Company's own stock and are considered equity classified, the 2023 convertible note hedges and 2023 warrants are recorded in stockholders’ equity, are not accounted for as derivatives and are not remeasured each reporting period. The net costs incurred in connection with the 2023 convertible note hedges and 2023 warrants were recorded as a reduction to additional paid-in capital on the condensed consolidated balance sheets. The Company also exercised a pro-rata portion of the 2023 convertible note hedges to offset the shares of the Company's Class A common stock issued to settle the conversion of the 2023 Convertible Notes. The Company has received 2.0 million shares of the Company's Class A common stock from the 2018 Counterparties, all of which was received in the twelve months ended December 31, 2021

In connection with the offering of the 2022 Convertible Notes, the Company entered into convertible note hedge transactions ("2022 convertible note hedges") with certain financial institution counterparties ("2017 Counterparties") whereby the Company has the option to purchase a total of approximately 19.2 million shares of its Class A common stock at a price of approximately $22.95 per share. The total cost of the 2022 convertible note hedge transactions was $92.1 million. In addition, the Company sold warrants ("2022 warrants") to the 2017 Counterparties whereby the 2017 Counterparties have the option to purchase a total of 19.2 million shares of the Company’s Class A common stock at a price of approximately $31.18 per share. The Company received $57.2 million in cash proceeds from the sale of the 2022 warrants. Taken together, the purchase of the 2022 convertible note hedges and sale of the 2022 warrants are intended to reduce dilution from the conversion of the 2022 Convertible Notes and/or offset any cash payments the Company is required to make in excess of the principal amount of the converted 2022 Convertible Notes, as the case may be, and to effectively increase the overall conversion price from approximately $22.95 per share to approximately $31.18 per share. As these instruments are considered indexed to the Company's own stock and are considered equity classified, the 2022 convertible note hedges and 2022 warrants are recorded in stockholders’ equity, are not accounted for as derivatives and are not remeasured each reporting period. The net costs incurred in connection with the 2022 convertible note hedges and 2022 warrants were recorded as a reduction to additional paid-in capital on the condensed consolidated balance sheets. The Company has exercised a pro-rata portion of the 2022 convertible note hedges to offset the shares of the Company's Class A common stock issued to settle the conversion of the 2022 Convertible Notes discussed above. The 2022 convertible note hedges were net share settled, and as of December 31, 2021, the Company has received 14.9 million shares of the Company's Class A common stock from the 2017 Counterparties, of which 5.5 million was received in the twelve months ended December 31, 2021.
v3.22.0.1
INCOME TAXES
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The domestic and foreign components of income (loss) before income taxes are as follows (in thousands):
Year Ended December 31,
202120202019
Domestic$417,356 $369,016 $456,335 
Foreign(259,894)(153,049)(78,122)
Income before income taxes$157,462 $215,967 $378,213 

The components of the provision for income taxes are as follows (in thousands):
Year Ended December 31,
202120202019
Current:
Federal$201 $— $114 
State3,186 4,016 930 
Foreign5,684 6,862 3,099 
Total current provision for income taxes9,071 10,878 4,143 
Deferred:
Federal(1,463)(970)(777)
State(524)(231)(399)
Foreign(8,448)(6,815)(200)
Total deferred provision for income taxes(10,435)(8,016)(1,376)
Total provision (benefit) for income taxes$(1,364)$2,862 $2,767 

The following is a reconciliation of the statutory federal income tax rate to the Company's effective tax rate:
Balance at December 31,
202120202019
Tax at federal statutory rate21.0 %21.0 %21.0 %
State taxes, net of federal benefit0.6 0.3 0.1 
Foreign rate differential10.4 4.0 1.4 
Other non-deductible expenses5.4 2.7 0.5 
Credits(83.9)(34.6)(13.9)
Other items1.6 2.2 (0.5)
Change in valuation allowance290.4 153.9 34.9 
Share-based compensation (275.0)(155.4)(45.8)
Change in uncertain tax positions5.0 2.3 0.5 
Sale of Caviar business line— — 1.2 
Non-deductible executive compensation5.9 3.6 0.6 
Non-deductible acquisition-related costs5.9 1.3 0.7 
Intercompany transactions3.8 — — 
Cancellation of debt income8.0 — — 
Total(0.9)%1.3 %0.7 %
    
The tax effects of temporary differences and related deferred tax assets and liabilities are as follows (in thousands):
Balance at December 31,
20212020
Deferred tax assets:
Capitalized costs$12,409 $17,994 
Accrued expenses62,707 47,653 
Net operating loss carryforwards1,276,561 962,069 
Tax credit carryforwards378,682 254,789 
Share-based compensation50,431 40,784 
Deferred interest34,475 13,800 
Other7,740 — 
Operating lease liability111,099 107,542 
Cryptocurrency investment17,600 — 
Deferred consideration11,266 — 
Convertible notes70,316 277 
Total deferred tax assets2,033,286 1,444,908 
Valuation allowance(1,887,111)(1,238,010)
Total deferred tax assets, net of valuation allowance146,175 206,898 
Deferred tax liabilities:
Property, equipment and intangible assets(31,775)(12,784)
Indefinite-lived intangibles(867)(352)
Other— (1,392)
Unrealized gain on investments(4,712)(73,425)
Operating lease right-of-use asset(108,747)(111,167)
Total deferred tax liabilities(146,101)(199,120)
Net deferred tax assets (liabilities)$74 $7,778 
Realization of deferred tax assets is dependent upon the generation of future taxable income, the timing and amount of which are uncertain. Due to the history of tax losses generated in the U.S. and certain foreign jurisdictions, the Company believes that it is more likely than not that its deferred tax assets in these jurisdictions will not be realized as of December 31, 2021. Accordingly, the Company retained a full valuation allowance on its deferred tax assets in these jurisdictions. The amount of deferred tax assets considered realizable in future periods may change as management continues to reassess the underlying factors it uses in estimating future taxable income. The valuation allowance increased by approximately $649.1 million and $378.4 million during the years ended December 31, 2021, and 2020, respectively.

As of December 31, 2021, the Company had $4,487.1 million of federal, $5,105.2 million of state, and $976.9 million of foreign net operating loss carryforwards, which will begin to expire in 2031 for federal and 2022 for state tax purposes. The foreign net operating loss carryforwards will begin to expire in 2023. As of December 31, 2021, the Company had $299.0 million of federal and $182.4 million of state research credit carryforwards. The federal credit carryforward will begin to expire in 2029 and the state credit carryforward has no expiration date.
Utilization of the net operating loss carryforwards and credits may be subject to annual limitations due to the ownership change limitations provided by the Internal Revenue Code of 1986, as amended, and similar state provisions. The annual limitations may result in the expiration of net operating losses and credits before they are able to be utilized. The Company does not expect any previous ownership changes, as defined under Section 382 and 383 of the Internal Revenue Code, to result in an ultimate limitation that will materially reduce the total amount of net operating loss carryforwards and credits that can be utilized.
As of December 31, 2021, the Company had unrecognized tax benefits of $448.4 million, of which $35.4 million would impact the annual effective tax rate if recognized and the remainder of which would result in a corresponding adjustment to the valuation allowance.
A reconciliation of the beginning and ending amount of unrecognized tax benefit is presented below (in thousands):
Year Ended December 31,
202120202019
Balance at the beginning of the year$295,182 $217,574 $198,540 
Gross increases and decreases related to prior period tax positions6,552 (2,615)(11,571)
Gross increases and decreases related to current period tax positions124,238 77,235 30,676 
Reductions related to lapse of statute of limitations— (49)(149)
Gross increases related to acquisitions22,420 3,037 78 
Balance at the end of the year$448,392 $295,182 $217,574 

The Company recognizes interest and penalties related to income tax matters as a component of income tax expense. The Company had total accrued interest and penalties of $7.8 million, $1.4 million, and $0.5 million related to uncertain tax positions for the years ended December 31, 2021, 2020, and 2019, respectively. It is reasonably possible that over the next 12-month period the Company may experience a decrease in its unrecognized tax benefits as a result of tax examinations or lapses of statute of limitations. The estimated decrease in unrecognized tax benefits may range up to $10.8 million.
The Company is subject to taxation in the United States and various state and foreign jurisdictions. The Company is currently under examination in California for tax years 2013, 2014, and 2016 and in Texas for tax years 2015-2019. The Company’s various tax years starting with 2009 to 2020 remain open in various taxing jurisdictions.
As of December 31, 2021, the Company has not provided deferred U.S. income taxes or foreign withholding taxes on temporary differences resulting from earnings for certain non-U.S. subsidiaries, which are permanently reinvested outside the U.S. Cumulative undistributed earnings for these non-U.S. subsidiaries as of December 31, 2021 are $0.1 million.
v3.22.0.1
STOCKHOLDER'S EQUITY
 12 Months Ended
Dec. 31, 2021
Equity [Abstract]  
STOCKHOLDER'S EQUITY STOCKHOLDERS' EQUITY
Convertible Preferred Stock

As of December 31, 2021, the Company is authorized to issue 100,000,000 shares of preferred stock, with a $0.0000001 par value. No shares of preferred stock are outstanding as of December 31, 2021.

Common Stock

The Company has authorized the issuance of Class A common stock and Class B common stock. Holders of the Company's Class A common stock and Class B common stock are entitled to dividends when, as and if, declared by the Company's board of directors, subject to the rights of the holders of all classes of stock outstanding having priority rights to dividends. As of December 31, 2021, the Company did not declare any dividends. Holders of shares of Class A common stock are entitled to one vote per share, while holders of shares of Class B common stock are entitled to ten votes per share. Shares of the Company's Class B common stock are convertible into an equivalent number of shares of its Class A common stock and generally convert into shares of its Class A common stock upon transfer. The holders of Class A common stock and Class B common stock have no preemptive or other subscription rights and there are no redemption or sinking fund provisions with respect to such shares.

Class A common stock and Class B common stock are referred to as "common stock" throughout these Notes to the Consolidated Financial Statements, unless otherwise noted. As of December 31, 2021, the Company was authorized to issue 1,000,000,000 shares of Class A common stock and 500,000,000 shares of Class B common stock, each with a par value of $0.0000001 per share. As of December 31, 2021, there were 403,237,209 shares of Class A common stock and 61,706,578 shares of Class B common stock outstanding. Options and awards granted following the Company's November 2015 initial public offering are related to underlying Class A common stock. Additionally, holders of Class B common stock are able to convert such shares into Class A common stock.
Warrants

In conjunction with the 2022 Convertible Notes offering, the Company sold the 2022 warrants whereby the counterparties have the option to purchase a total of approximately 19.2 million shares of the Company’s Class A common stock at a price of $31.18 per share, and expire on June 1, 2022. None of the warrants were exercised as of December 31, 2021.

In conjunction with the 2023 Convertible Notes offering, the Company sold the 2023 warrants whereby the counterparties have the option to purchase a total of approximately 11.1 million shares of the Company’s Class A common stock at a price of $109.26 per share, and expire on August 15, 2023. None of the warrants were exercised as of December 31, 2021.

In conjunction with the 2025 Convertible Notes offering, the Company sold the 2025 warrants whereby the counterparties have the option to purchase a total of approximately 8.3 million shares of the Company’s Class A common stock at a price of $161.34 per share, and expire on June 1, 2025. None of the warrants were exercised as of December 31, 2021.

In conjunction with the 2026 Convertible Notes offering, the Company sold the 2026 warrants whereby the counterparties have the option to purchase a total of approximately 1.9 million shares of the Company’s Class A common stock at a price of $368.16 per share, and expire on August 1, 2026. None of the warrants were exercised as of December 31, 2021.

In conjunction with the 2027 Convertible Notes offering, the Company sold the 2027 warrants whereby the counterparties have the option to purchase a total of approximately 1.9 million shares of the Company’s Class A common stock at a price of $414.18 per share, and expire on February 1, 2028. None of the warrants were exercised as of December 31, 2021.

Indemnification Arrangements

During the year ended December 31, 2019, the Company received 20,793 shares of its common stock, respectively, that were forfeited back to the Company as indemnification against liabilities related to certain acquired businesses preacquisition matters. The receipt of the forfeited shares was accounted for as equity repurchases. The Company received no shares related to indemnification arrangements in the years ended December 31, 2021 and 2020.

Conversion of Convertible Notes and Exercise of Convertible Note Hedges

In connection with the conversion of certain of the 2022 Convertible Notes, the Company issued 16.5 million shares of Class A common stock, of which 0.4 million shares were issued in the year ended December 31, 2021. The Company also exercised a pro-rata portion of the 2022 convertible note hedges and received 14.9 million shares of Class A common stock from the counterparties to offset the shares issued, of which 5.5 million shares were received in the year ended December 31, 2021.

In connection with the conversion of the 2023 Convertible Notes, the Company issued 5.2 million shares of Class A common stock during the twelve months ended December 31, 2021. The Company also exercised a pro-rata portion of the 2023 convertible note hedges and received 2.0 million shares of Class A common stock from the 2018 Counterparties to offset the shares issued as of December 31, 2021.

Stock Plans

The Company maintains two share-based employee compensation plans: the 2009 Stock Plan (2009 Plan) and the 2015 Equity Incentive Plan (2015 Plan). The 2015 Plan serves as the successor to the 2009 Plan. The 2015 Plan became effective as of November 17, 2015. Outstanding awards under the 2009 Plan continue to be subject to the terms and conditions of the 2009 Plan. Since November 17, 2015, no additional awards have been nor will be granted in the future under the 2009 Plan.
Under the 2015 Plan, shares of the Company's Class A common stock are reserved for the issuance of incentive and nonstatutory stock options (ISOs and NSOs, respectively), restricted stock awards (RSAs), restricted stock units (RSUs), performance shares, and stock bonuses to qualified employees, directors, and consultants. The awards must be granted at a price per share not less than the fair market value at the date of grant. Initially, 30,000,000 shares were reserved under the 2015 Plan and any shares subject to options or other similar awards granted under the 2009 Plan that expire, are forfeited, are repurchased by the Company or otherwise terminate unexercised will become available under the 2015 Plan. The number of shares available for issuance under the 2015 Plan has been and will be increased on the first day of each fiscal year, in an amount equal to the least of (i) 40,000,000 shares, (ii) 5% of the outstanding shares on the last day of the immediately preceding fiscal year, or (iii) such number of shares determined by the administrator of the Plan. The administrator consists of the Board of Directors who then delegates the responsibilities to the Compensation Committee. As of December 31, 2021, the total number of shares subject to stock options, RSAs and RSUs outstanding under the 2015 Plan was 6,447,775 shares, and 118,149,752 shares were available for future issuance. 
Under the 2009 Plan, shares of common stock are reserved for the issuance of ISOs or NSOs to eligible participants. The options may be granted at a price per share not less than the fair market value at the date of grant. Options granted generally vest over a 4 year term from the date of grant, at a rate of 25% after one year, then monthly on a straight-line basis thereafter. Generally, options granted are exercisable for up to 10 years from the date of grant. The Plan allows for early exercise of employee stock options whereby the option holder is allowed to exercise prior to vesting. Any unvested shares are subject to repurchase by the Company at their original exercise prices. As of December 31, 2021, the total number of shares subject to stock options, RSAs, and RSUs outstanding under the 2009 Plan was 15,690,278 shares.
A summary of stock option activity for the year ended December 31, 2021 is as follows (in thousands, except share and per share data):
Number of Stock Options OutstandingWeighted
Average
Exercise
Price		Weighted
Average
Remaining
Contractual
Term
(in years)		Aggregate
Intrinsic
Value
Balance at December 31, 202013,630,882 $17.84 3.84$2,723,394 
Granted198,771 255.22 
Exercised(4,900,413)12.33 
Forfeited(13,140)67.50 
Balance at December 31, 20218,916,100 $26.09 3.89$1,226,105 
Options exercisable as of December 31, 20217,769,686 $16.58 3.30$1,129,046 
Aggregate intrinsic value represents the difference between the Company’s estimated fair value of its common stock and the exercise price of outstanding, “in-the-money” options. Aggregate intrinsic value for stock options exercised for the years ended December 31, 2021, 2020, and 2019 was $1.1 billion, $1.2 billion, and $616.3 million, respectively.
The total weighted average grant-date fair value of options granted was $131.57, $27.04 and $30.58 per share for the years ended December 31, 2021, 2020 and 2019, respectively.
Restricted Stock Activity

The Company issues RSAs and RSUs under the 2015 Plan, which typically vest over a term of four years.

Activity related to RSAs and RSUs during the year ended December 31, 2021 is set forth below:
Number of
shares		Weighted
Average Grant
Date Fair Value
Unvested as of December 31, 202015,622,645 $71.71 
Granted5,313,636 247.56 
Vested(6,708,326)74.97 
Forfeited(1,006,002)109.48 
Unvested as of December 31, 202113,221,953 $137.86 

The total fair value of shares vested in the year ended December 31, 2021, 2020, and 2019 were $1.6 billion, $817.5 million, and $552.9 million, respectively.

Employee Stock Purchase Plan

On November 17, 2015, the Company’s 2015 Employee Stock Purchase Plan (ESPP) became effective. The ESPP allows eligible employees to purchase shares of the Company’s common stock at a discount through payroll deductions of up to 15% of their eligible compensation, (or 25% for offering periods that commence after November 1, 2019), subject to any plan limitations. The ESPP provides for 12-month offering periods. The offering periods are scheduled to start on the first trading day on or after May 15 and November 15 of each year. Each offering period includes two purchase periods, which begin on the first trading day on or after November 15 and May 15, and ending on the last trading day on or before May 15 and November 15, respectively. Employees are able to purchase shares at 85% of the lower of the fair market value of the Company’s common stock on the first trading day of the offering period or the last trading day of the purchase period. The number of shares available for sale under the ESPP will be increased annually on the first day of each fiscal year, equal to the least of (i) 8,400,000 shares, (ii) 1% of the outstanding shares of the Company’s common stock as of the last day of the immediately preceding fiscal year, or (iii) such other amount as determined by the administrator. As of December 31, 2021, 6,301,377 shares had been purchased under the ESPP and 22,378,096 shares were available for future issuance under the ESPP.

Share-Based Compensation

The fair value of stock options granted was estimated using the following weighted-average assumptions:
    
Year Ended December 31,
202120202019
Dividend yield— %— %— %
Risk-free interest rate1.08 %0.41 %2.37 %
Expected volatility54.91 %48.29 %40.48 %
Expected term (years)6.026.026.02
The following table summarizes the effects of share-based compensation on the Company's consolidated statements of operations (in thousands):
Year Ended December 31,
202120202019
Cost of revenue $410 $368 $155 
Product development446,596 289,553 210,840 
Sales and marketing57,070 36,627 26,720 
General and administrative103,966 70,952 60,148 
Total$608,042 $397,500 $297,863 
    
The Company recorded $34.9 million, $18.2 million, and $18.9 million of share-based compensation expense related to the Company's 2015 Employee Stock Purchase Plan during the years ended December 31, 2021, 2020 and 2019, respectively.
    
The Company capitalized $15.1 million, $13.9 million, and $8.2 million of share-based compensation expense related to capitalized software during the years ended December 31, 2021, 2020 and 2019, respectively.
    
As of December 31, 2021, there was $1.7 billion of total unrecognized compensation cost related to outstanding stock options and restricted stock awards that are expected to be recognized over a weighted average period of 2.8 years.
v3.22.0.1
NET INCOME PER SHARE
 12 Months Ended
Dec. 31, 2021
Earnings Per Share [Abstract]  
NET INCOME PER SHARE NET INCOME PER SHARE
Basic net income per share is computed by dividing the net income by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding adjusted for the dilutive effect of all potential shares of common stock. In the years when the Company reported a net loss, diluted loss per share is the same as basic loss per share because the effects of potentially dilutive items were anti-dilutive.
The following table presents the calculation of basic and diluted net income per share (in thousands, except per share data):
Year Ended December 31,
202120202019
Net income$158,826 $213,105 $375,446 
Less: Net loss attributable to noncontrolling interests(7,458)— — 
Net income attributable to common stockholders$166,284 $213,105 $375,446 
Basic shares:
Weighted-average common shares outstanding458,780 443,773 425,728 
Weighted-average unvested shares(348)(647)(729)
Weighted-average shares used to compute basic net income per share attributable to common stockholders458,432 443,126 424,999 
Diluted shares:
Stock options, restricted stock, and employee stock purchase plan17,849 23,628 30,645 
Convertible senior notes408 — — 
Common stock warrants25,090 15,413 10,432 
Weighted-average shares used to compute diluted net income per share attributable to common stockholders501,779482,167466,076
Net income per share attributable to common stockholders:
Basic$0.36 $0.48 $0.88 
Diluted$0.33 $0.44 $0.81 

The following potential common shares were excluded from the calculation of diluted net income per share because their effect would have been anti-dilutive for the periods presented (in thousands):
Year Ended December 31,
202120202019
Stock options, restricted stock, and employee stock purchase plan7,680 12,509 14,760 
Common stock warrants17,271 22,140 19,820 
Convertible senior notes23,947 25,073 20,305 
Total anti-dilutive securities48,898 59,722 54,885 
v3.22.0.1
RELATED PARTY TRANSACTIONS
 12 Months Ended
Dec. 31, 2021
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS RELATED PARTY TRANSACTIONSIn July 2019, the Company entered into a lease agreement to lease certain office space located in St. Louis, Missouri, from an affiliate of one of the Company’s co-founders and current member of its board and directors, Mr. Jim McKelvey, under an operating lease agreement as discussed in Note 18, Commitments and Contingencies. The lease commencement date varies by floor beginning in May 2020. The term of the agreement is 15.5 years with total future minimum lease payments over the term of approximately $42.7 million. As of December 31, 2021, the Company had recorded right-of-use assets of $20.8 million and associated lease liabilities of $33.8 million related to this lease arrangement.
v3.22.0.1
COMMITMENTS AND CONTINGENCIES
 12 Months Ended
Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES
Operating and Finance Leases
The Company’s operating leases are primarily comprised of office facilities, with the most significant leases relating to its offices in San Francisco, Oakland, St. Louis, and New York. The Company's leases have remaining lease terms of 1 year to 15 years, some of which include options to extend for 5 year terms, or include options to terminate the leases within 1 year. None of the options to extend the leases have been included in the measurement of the right of use asset or the associated lease liability.

In July 2019, the Company entered into a lease arrangement for 226,185 square feet of office space in St Louis, Missouri, with an affiliate of one of the Company’s co-founders, Mr. Jim McKelvey, who is also a Company stockholder and a member of its board of directors, for a term of 15.5 years with options to extend the lease term for two 5 year terms. The Company also has an option to terminate the lease for up to 50% of the leased space any time between January 1, 2024 and December 31, 2026, as well as an option to terminate the lease for the entire property on January 1, 2034. Termination penalties specified in the lease agreement will apply if the Company exercises any of the options to terminate the lease. The lease commencement date varies by floor beginning in May 2020 with total future minimum lease payments over the term of approximately $42.7 million. Refer to Note 17, Related Party Transactions for further details.

    There were no finance lease obligations as of December 31, 2021.

    The components of lease expense for the year ended December 31, 2021 were as follows (in thousands):
Year Ended December 31,
20212020
Fixed operating lease costs$83,136 $70,254 
Variable operating lease costs15,568 15,625 
Short term lease costs1,953 6,375 
Sublease income(12,210)(8,594)
Finance lease costs
Amortization of finance right-of-use assets— 2,446 
Total lease costs$88,447 $86,106 

Other information related to leases was as follows:
December 31,
2021
Weighted Average Remaining Lease Term:
Operating leases8.3 years
Weighted Average Discount Rate:
Operating leases4 %
Cash flows related to leases were as follows (in thousands):
Year Ended December 31,
20212020
Cash flows from operating activities:
Payments for operating lease liabilities$(77,201)$(46,901)
Cash flows from financing activities:
Principal payments on finance lease obligation$— $(2,446)
Supplemental Cash Flow Data:
Right-of-use assets obtained in exchange for operating lease obligations$63,290 $342,662 

Future minimum lease payments under non-cancelable operating leases (with initial lease terms in excess of one year) as of December 31, 2021 are as follows (in thousands):
Operating
Year:
2022$78,304 
202377,904 
202459,612 
202553,839 
202646,015 
Thereafter224,498 
Total$540,172 
Less: amount representing interest76,407 
Less: leases executed but not yet commenced— 
Less: lease incentives and transfer to held for sale4,721 
Total$459,044 

The Company recognized total rental expenses for operating leases of $80.3 million, $75.2 million, and $32.5 million during the years ended December 31, 2021, 2020, and 2019, respectively.

Litigation and regulatory matters
The Company is currently subject to, and may in the future be involved in, various litigation matters, legal claims, investigations, and regulatory proceedings.

We have received Civil Investigative Demands (“CIDs”) from the Consumer Financial Protection Bureau (“CFPB”), as well as from Attorneys General from multiple states, seeking the production of information related to, among other things, Cash App’s handling of customer complaints and disputes. We are cooperating with the CFPB and the state Attorneys General in connection with these CIDs. During the three months ended December 31, 2021, we accrued a non-material loss reserve in connection with the CFPB CIDs. Given the status of these matters, it is not possible to reliably determine the potential liability, if any, or reliably estimate the range of any potential liability in excess of the accrued amounts, that could result from these investigations. The Company regularly assesses the likelihood of adverse outcomes resulting from litigation and regulatory proceedings and adjusts the financial statements based on such assessments. The eventual outcome of these matters could differ materially from the estimates of loss reserves we have currently accrued in the financial statements.

On December 16, 2021, H&R Block, Inc. and HRB Innovations, Inc. (collectively, “HRB”) filed a complaint for trademark infringement against the Company. HRB alleges that the Company’s rebranding to Block, Inc. and use of a green square logo in connection with the Company’s Cash App Taxes product infringe HRB’s registered trademarks and are likely to cause consumer confusion. The Company believes this lawsuit is without merit.
In addition, the Company is subject to various legal matters, investigations, claims, and disputes arising in the ordinary course of business. The Company cannot at this time fairly estimate a reasonable range of exposure, if any, of the potential liability with respect to these matters. Although occasional adverse decisions or settlements may occur, the Company does not believe that the final disposition of any of these other matters will have a material adverse effect on its results of operations, financial position, or liquidity. The Company cannot give any assurance regarding the ultimate outcome of these matters, and their resolution could be material to the Company's operating results for any particular period.

Other contingencies

We are under examination, or may be subject to examination, by several tax authorities. These examinations may lead to proposed adjustments to our taxes or net operating losses with respect to years under examination, as well as subsequent periods. We regularly assess the likelihood of adverse outcomes resulting from tax examinations to determine the adequacy of our provision for direct and indirect taxes. We continue to monitor the progress of ongoing discussions with tax authorities and the effect, if any, on our provision for direct and indirect taxes.

We believe that an adequate provision has been made for any adjustments that may result from tax examinations. However, the outcome of tax audits cannot be predicted with certainty. If any issues addressed in our tax audits are resolved in a manner not consistent with the Company’s expectations, we could be required to adjust our provision for direct and indirect taxes in the period such resolution occurs.
v3.22.0.1
SEGMENT AND GEOGRAPHICAL INFORMATION
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
SEGMENT AND GEOGRAPHICAL INFORMATION SEGMENT AND GEOGRAPHICAL INFORMATION
The Company reports its operating segments to reflect the manner in which the Company's CODM reviews and assesses performance. Accordingly, the Company has two reportable segments, which are Square and Cash App. Products and services that are not assigned to a specific reportable segment including but not limited to TIDAL, TBD, and Spiral are aggregated and presented within a general corporate and other category. Disclosures regarding the Company’s reportable segments for prior periods have been adjusted to conform to the current period presentation. Square and Cash App are defined as follows:

•Square includes managed payment services, software solutions, hardware, and financial services offered to sellers, excluding those that involve Cash App.

•Cash App includes the financial tools available to individuals within the mobile Cash App, including peer-to-peer payments, bitcoin and stock investments. Cash App also includes Cash Card which is linked to customer stored balances that customers can use to pay for purchases or withdraw funds from an ATM.

The primary financial measures used by the CODM to evaluate performance and allocate resources are revenue and gross profit. The CODM does not evaluate performance or allocate resources based on segment asset data, and therefore such information is not included.
Information on the reportable segments revenue and segment gross profit are as follows (in thousands):
Year Ended December 31, 2021
Cash AppSquareCorporate and Other (i)Total
Revenue
Transaction-based revenue$409,844 $4,383,302 $— $4,793,146 
Subscription and services-based revenue1,893,008 664,367 152,356 2,709,731 
Hardware revenue— 145,679 — 145,679 
Bitcoin revenue10,012,647 — — 10,012,647 
Segment revenue12,315,499 5,193,348 152,356 17,661,203 
Segment gross profit$2,070,847 $2,316,671 $32,305 $4,419,823 

Year Ended December 31, 2020
Cash AppSquareCorporate and Other (i)Total
Revenue
Transaction-based revenue$233,747 $3,061,231 $— $3,294,978 
Subscription and services-based revenue1,163,096 376,307 — 1,539,403 
Hardware revenue— 91,654 — 91,654 
Bitcoin revenue4,571,543 — — 4,571,543 
Segment revenue5,968,386 3,529,192 — 9,497,578 
Segment gross profit$1,225,578 $1,507,831 $— $2,733,409 

Year Ended December 31, 2019
Cash AppSquareCorporate and Other (i)Total
Revenue
Transaction-based revenue$72,865 $3,008,209 $— $3,081,074 
Subscription and services-based revenue516,269 369,274 — 885,543 
Hardware revenue— 84,505 — 84,505 
Bitcoin revenue516,465 — — 516,465 
Segment revenue1,105,599 3,461,988 — 4,567,587 
Segment gross profit$457,668 $1,390,427 $— $1,848,095 
(i) Corporate and other represents results related to products and services that are not assigned to a specific reportable segment. Comparable prior period amounts have not been disclosed as they were not material.

The amounts in the tables above exclude the Caviar business, a food ordering and delivery platform business, which was sold in the year ended December 31, 2019. A reconciliation of total segment revenues, as indicated above, to the Company's consolidated revenues is as follows (in thousands):
Year Ended December 31,
202120202019
Total segment revenue$17,661,203 $9,497,578 $4,567,587 
Caviar revenue— — 145,913 
Total net revenue$17,661,203 $9,497,578 $4,713,500 

A reconciliation of total segment gross profit to the Company's income before applicable income taxes is as follows (in thousands):
Year Ended December 31,
202120202019
Total segment gross profit$4,419,823 $2,733,409 $1,848,095 
Add: Caviar gross profit— — 41,590 
Total reported operating gross profit4,419,823 2,733,409 1,889,685 
Less: Product development1,399,079 885,681 674,165 
Less: Sales and marketing1,617,189 1,109,670 625,126 
Less: General and administrative983,326 579,203 436,878 
Less: Transaction and loan losses187,991 177,670 126,959 
Less: Bitcoin impairment losses71,126 — — 
Less: Gain on sale of asset group— — (373,445)
Less: Interest expense, net33,124 56,943 21,516 
Less: Other expense (income), net(29,474)(291,725)273 
Income before applicable income taxes$157,462 $215,967 $378,213 
Revenue
Revenue by geography is based on the addresses of the sellers or customers. The following table sets forth revenue by geographic area (in thousands):
Year Ended December 31,
202120202019
Revenue
United States$17,077,532 $9,186,440 $4,472,473 
International583,671 311,138 241,027 
Total net revenue$17,661,203 $9,497,578 $4,713,500 

No individual country from the international markets contributed in excess of 10% of total revenue for the years ended December 31, 2021, 2020, and 2019.

Long-Lived Assets

The following table sets forth long-lived assets by geographic area (in thousands):
December 31,
20212020
Long-lived assets
United States$1,426,103 $1,086,379 
International81,768 58,342 
Total long-lived assets$1,507,871 $1,144,721 

Assets by reportable segment were not included, as this information is not reviewed by the CODM to make operating decisions or allocate resources, and is reviewed on a consolidated basis.
v3.22.0.1
SUPPLEMENTAL CASH FLOW INFORMATION
 12 Months Ended
Dec. 31, 2021
Supplemental Cash Flow Elements [Abstract]  
SUPPLEMENTAL CASH FLOW INFORMATION SUPPLEMENTAL CASH FLOW INFORMATION
The supplemental disclosures of cash flow information consist of the following (in thousands):
Year Ended December 31,
202120202019
Supplemental Cash Flow Data:
Cash paid for interest$40,446 $3,857 $5,677 
Cash paid for income taxes10,041 6,001 2,744 
Supplemental disclosures of non-cash investing and financing activities:
Right-of-use assets obtained in exchange for operating lease obligations63,290 342,662 40,555 
Purchases of property and equipment in accounts payable and accrued expenses15,071 (3,975)(419)
Unpaid business combination purchase price50,079 8,974 8,411 
Non-cash proceeds from sale of asset group— — 100,000 
Fair value of common stock issued related to business combination(28,735)(35,318)— 
Recovery of common stock in connection with indemnification settlement agreement— — 789 
Fair value of common stock issued to settle the conversion of senior notes(1,258,562)(1,398,829)— 
Fair value of shares received to settle senior note hedges1,800,933 369,015 — 
Bitcoin lent to third party borrowers6,084 — — 
v3.22.0.1
SUBSEQUENT EVENTS
 12 Months Ended
Dec. 31, 2021
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS SUBSEQUENT EVENTSThe Company completed the acquisition of Afterpay on January 31, 2022 as discussed in Note 8 Acquisitions. On January 28, 2022, the Company entered into a fifth amendment to the Credit Agreement to permit certain existing obligations of Afterpay and its subsidiaries to remain outstanding as of and after the completion of the Afterpay acquisition. On February 23, 2022, the Company entered into a sixth amendment to the Credit Agreement to increase the revolving commitments under the 2020 Credit Facility by $100 million to an aggregate principal amount of up to $600 million.
v3.22.0.1
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
 12 Months Ended
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation
Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (U.S. GAAP). Our consolidated financial statements include the accounts of Block, Inc. our wholly-owned subsidiaries, and entities for which we control a majority of the entity’s outstanding common stock. We record non-controlling interest in our consolidated financial statements to recognize the minority ownership interest in our consolidated subsidiaries. Non-controlling interest in the earnings and losses of consolidated subsidiaries represent the share of net income or loss allocated to the minority interest holders of our consolidated entities, which includes the non-controlling interest share of net income or loss. We have eliminated significant intercompany transactions and accounts in our consolidated financial statements.
Use of Estimates
Use of Estimates

The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, as well as related disclosure of contingent assets and liabilities. Actual results could differ from the Company’s estimates. To the extent that there are material differences between these estimates and actual results, the Company’s financial condition or operating results will be materially affected. The Company bases its estimates on current and past experience, to the extent that historical experience is predictive of future performance and other assumptions that the Company believes are reasonable under the circumstances. The Company evaluates these estimates on an ongoing basis.

Estimates, judgments, and assumptions in these consolidated financial statements include, but are not limited to, those related to accrued transaction losses, contingencies, valuation of loans held for sale, valuation of goodwill and acquired intangible assets, the determination of allowance for loan loss reserves for loans held for investment, pre-acquisition contingencies associated with business combinations, assessing the likelihood of adverse outcomes from claims and disputes,
accrued royalties, income and other taxes, operating and financing lease right-of-use assets and related liabilities, and share-based compensation.

While the Company's business continues to be impacted by the COVID-19 pandemic, it experienced improvements in 2021 as compared to 2020, as the majority of U.S. markets transitioned to varying states of economic recovery and reopenings. However, the emergence of new and more transmissible variants of COVID-19 such as Delta and Omicron has led to a possible resurgence of the virus, particularly in populations with low vaccination rates, and has resulted in new restrictions in certain geographies and among certain businesses. The Company continues to monitor the carrying values of its assets and liabilities based on estimates, judgments and circumstances it is aware of and consider the effects and trends of COVID-19.
The Company's estimates of accrued transaction losses and valuation of loans held for sale are based on historical experience, adjusted for market data relevant to the current economic environment including COVID-19 trends. The Company will continue to update its estimates as developments occur and additional information is obtained. See Note 5, Fair Value of Financial Instruments, for further details on amortized cost over fair value of the loans, and Note 11 Other Consolidated Balance Sheet Components (Current), for further details on transaction losses.
Revenue Recognition and Cost of Revenue
Revenue Recognition

Revenue is recognized when control of the promised goods or services is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services.

Transaction-based revenue

The Company charges its sellers a transaction fee for managed payments solutions that is generally calculated as a percentage of the total transaction amount processed. The Company selectively offers custom pricing for certain sellers. The Company collects the transaction amount from the seller's customer's bank, net of acquiring interchange and assessment fees, processing fees, and bank settlement fees paid to third-party payment processors and financial institutions. The Company retains its fees and remits the net amount to the sellers.

The Company acts as the merchant of record for its sellers and works directly with payment card networks and banks so that its sellers do not need to manage the complex systems, rules, and requirements of the payments industry. The Company satisfies its performance obligations and therefore recognizes the transaction fees as revenue upon authorization of a transaction by the seller's customer's bank.

Revenue is recognized net of refunds, which arise from reversals of transactions initiated by sellers.

The transaction fees collected from sellers are recognized as revenue on a gross basis as the Company is the principal in the delivery of the managed payments solutions to the sellers. The Company has concluded it is the principal because as the merchant of record, it controls the services before delivery to the seller, it is primarily responsible for the delivery of the services to its sellers, and it has discretion in setting prices charged to sellers. The Company also has the unilateral ability to accept or reject a transaction based on criteria established by the Company. As the merchant of record, Square is liable for the costs of processing the transactions for its sellers, and records such costs within cost of revenue.

The Company also charges certain Cash App customers making peer-to-peer transactions using business accounts, or funding transactions with a credit card, a transaction fee that is generally calculated as a percentage of the total transaction amount processed. The Company collects the transaction amount from the customer's Cash App account, net of incurring interchange and assessment fees, processing fees, and bank settlement fees paid to third-party payment processors and financial institutions. The Company retains its fees and remits the net amount to the customers.
Subscription and services-based revenue

Subscription and services-based revenue is primarily comprised of revenue the Company generates from Instant Deposit and Cash Card, Square Loans (formerly known as Square Capital), website hosting and domain name registration services, TIDAL, and various other software as a service (SaaS) products. Instant Deposit is a functionality within the Cash App and the Company's managed payments solution that enables customers, including individuals and sellers, to instantly deposit funds into their bank accounts. The Company charges a per transaction fee which is recognized as revenue when customers instantly deposit funds to their bank account. The Company also offers Cash App customers the ability to use funds stored in the Cash App via a Visa prepaid card (Cash Card), for which the Company earns a per transaction fee that is recorded as revenue.

Beginning in April 2021, the Company started originating loans to customers through Square Financial Services. Prior to April 2021, the Company facilitated loans to customers through a partnership with an industrial bank. The loans are either repaid through withholding a percentage of the collections of the seller's receivables processed by the Company or a specified monthly amount. The Company generally utilizes a pre-qualification process that includes an analysis of the aggregated data of the seller’s business which includes, but is not limited to, the seller’s historical processing volumes, transaction count, chargebacks, growth, and length of time as a Square customer. Generally, the loans have no stated coupon rate but the seller is charged a one-time origination fee based upon their risk rating, which is derived primarily from processing activity. For some of the loans, it is the Company’s intent to sell all of its rights, title, and interest of these loans to third-party investors for an upfront fee when the loans are sold. The Company records as cost of the loans, the amounts advanced to the customers or the net amounts paid to purchase the loans. Subsequently, the Company records a gain on sale of the loans to the third-party investors as revenue upon transfer of title. The Company is retained by the third-party investors to service the loans and earns a servicing fee for facilitating the repayment of these receivables through its managed payments solutions. The Company records servicing revenue as servicing is delivered. For the loans which are not immediately sold to third-party investors or for which the Company has the intent and ability to hold through maturity, interest and fees earned are recognized as revenue using the effective interest method.

The Company offers customers website hosting services for a fee that is generally billed at inception. The Company also acts as a reseller of domain names registration services for a registrar for a fee, which is also generally billed at inception. The Company considers that it satisfies its performance obligations over time and as such recognizes revenue ratably over the term of the relevant arrangements, which vary from one month to twenty four months for website hosting, and one year to ten years for domain name registration.

TIDAL primarily generates revenue from subscriptions to its customers, and such subscriptions allow access to the song library, video library, and improved sound quality. Customers can subscribe to services directly from the TIDAL website or through the Apple store, for which the Company charges a monthly fee which is recognized ratably as revenue as the service is provided.

SaaS represents software products and solutions that provide customers with access to various technologies for a fee which is recognized as revenue ratably as the service is provided. The Company's contracts with customers are generally for a term of one month and renew automatically each month. The Company invoices its customers monthly. The Company considers that it satisfies its performance obligations over time each month as it provides the SaaS services to customers and hence recognizes revenue ratably over the month.

Hardware revenue

The Company generates revenue through the sale of hardware through e-commerce and through its retail distribution channels. The Company satisfies its performance obligation upon delivery of hardware to its customers which include end user customers, distributors, and retailers. The Company allows for customer returns which are accounted for as variable consideration. The Company estimates these amounts based on historical experience and reduces revenue recognized. The Company invoices end user customers upon delivery of the products to customers, and payments from such customers are due upon invoicing. Distributors and retailers have payment terms that range from 30 to 90 days after delivery.

The Company offers hardware installment sales to customers with terms ranging from three to twenty four months. The Company allocates a portion of the consideration received from these arrangements to a financing component when it determines that a significant financing component exists. The financing component is subsequently recognized as financing revenue separate from hardware revenue, within subscription and services-based revenue, over the terms of the arrangement
with the customer. Pursuant to practical expedients afforded under ASC 606, the Company does not recognize a financing component for hardware installment sales that have a term of one year or less.

Bitcoin revenue

The Company offers its Cash App customers the ability to purchase bitcoin, a cryptocurrency denominated asset, from the Company. The Company satisfies its performance obligation and records revenue when bitcoin is transferred to the customer's account. The Company purchases bitcoin from private broker dealers or from Cash App customers and applies a marginal fee before selling it to its customers. The sale amounts received from customers are recorded as revenue on a gross basis and the associated bitcoin cost as cost of revenues, as the Company is the principal in the bitcoin sale transaction. The Company has concluded it is the principal because it controls the bitcoin before delivery to the customers, it is primarily responsible for the delivery of the bitcoin to the customers, it is exposed to risks arising from fluctuations of the market price of bitcoin before delivery to customers, and has discretion in setting prices charged to customers.

Cost of Revenue

Transaction-based costs

Transaction-based costs consist primarily of interchange and assessment fees, processing fees and bank settlement fees paid to third-party payment processors and financial institutions.

Subscription and services-based costs

Subscriptions and services-based costs consists of costs associated with Cash Card, Instant Deposit, and TIDAL costs. Prior to 2020, subscription and services-based costs consisted primarily of Caviar-related costs. The Caviar business was sold in the fourth quarter of 2019.

Hardware costs

Hardware costs consist of all product costs associated with contactless and chip readers, chip card readers, Square Terminal, Square Stand, Square Register, and third-party peripherals. Product costs consist of third-party manufacturing-related overhead and personnel costs, certain royalties, packaging, and fulfillment costs.

Bitcoin costs

Bitcoin cost of revenue comprises of the amounts the Company pays to purchase bitcoin, which will fluctuate in line with the price of bitcoin in the market.

Other costs

Generally, other costs such as employee costs, rent, and occupancy charges are not allocated to cost of revenues and are reflected in operating expenses and are not material.
Sales and Marketing Expenses Sales and Marketing Expenses Advertising costs are expensed as incurred and included in sales and marketing expense in the consolidated statements of operations. Total advertising costs for the years ended December 31, 2021, 2020, and 2019 were $435.8 million, $224.7 million, and $142.7 million, respectively. In addition, services, incentives, and other costs to customers that are not directly related to a revenue generating transaction are recorded as sales and marketing expenses, as the Company considers these to be marketing costs to encourage the usage of Cash App. These expenses include, but are not limited to, Cash App peer-to-peer processing costs and related transaction losses, card issuance costs, customer referral bonuses, and promotional giveaways
Share-based Compensation Share-based CompensationShare-based compensation expense relates to stock options, restricted stock awards (RSAs), restricted stock units (RSUs), and purchases under the Company’s 2015 Employee Stock Purchase Plan (ESPP) which is measured based on the grant-date fair value. The fair value of RSAs and RSUs is determined by the closing price of the Company’s common stock on each grant date. The fair value of stock options and ESPP shares granted to employees is estimated on the date of grant using the Black-Scholes-Merton option valuation model. This share-based compensation expense valuation model requires the Company to make assumptions and judgments regarding the variables used in the calculation. These variables include the expected term (weighted average period of time that the options granted are expected to be outstanding), the expected volatility of the Company’s stock, expected risk-free interest rate and expected dividends. The Company uses the simplified calculation of expected term, defined as an average of the vesting term and the contractual term to maturity. Expected volatility is based on a weighted average of the historical volatilities of the Company's common stock along with several entities with characteristics similar to those of the Company. In May 2020, the Company began using its own volatility, as the Company uses its own historical stock price information, such that a peer group is no longer considered necessary. The expected risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected life of the option. Generally, share-based compensation expense is recorded on a straight-line basis over the requisite service period. The Company accounts for forfeitures as they occur.
Interest Income and Interest Expense, net Interest Income and Expense, netInterest income consists of interest income from the Company's investment in marketable debt securities and interest expense relating to the Company's long-term debt.
Income and Other Taxes
Income and Other Taxes

The Company reports income taxes under the asset and liability approach. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, as well as net operating loss and tax credit carryforwards. Deferred tax amounts are determined by using the enacted tax rates expected to be in effect when the temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

A valuation allowance reduces the deferred tax assets to the amount that is more likely than not to be realized. The Company considers historical information, tax planning strategies, the expected timing of the reversal of existing temporary differences, and may rely on financial projections to support its position on the recoverability of deferred tax assets. The Company’s judgment regarding future profitability contains significant assumptions and estimates of future operations. If such assumptions were to differ significantly from actual future results of operations, it may have a material impact on the Company’s ability to realize its deferred tax assets. At the end of each period, the Company assesses the ability to realize the deferred tax assets. If it is more likely than not that the Company will not realize the deferred tax assets, then the Company establishes a valuation allowance for all or a portion of the deferred tax assets.

The Company recognizes the effect of uncertain income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that has a greater than 50% likelihood of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest and penalties related to uncertain tax positions in the provision for income tax expense on the consolidated statements of operations.
Cash and Cash Equivalents and Restricted Cash and Customer Funds
Cash and Cash Equivalents and Restricted Cash and Customer Funds

Cash and Cash Equivalents:

The Company considers all highly liquid investments, including money market funds, with an original maturity of three months or less when purchased to be cash equivalents.
Restricted Cash:

Restricted cash represents pledged cash deposits in savings accounts at the financial institutions that process the Company's sellers' payment transactions and collateral pursuant to various agreements with banks relating to the Company's loan products. The Company uses the restricted cash to secure letters of credit with the financial institution to provide collateral for cash flow timing differences in the processing of payments. The Company records amounts as a current asset on the consolidated balance sheets if the restriction expires in less than 12 months, or as a non-current asset if the restriction is 12 months or longer. If there is no minimum time frame during which the cash must remain restricted, the nature of the transactions related to the restriction determine the classification. Additionally, this balance includes certain amounts held as collateral pursuant to multi-year lease agreements that we expect to become unrestricted within the next year, as discussed in the paragraph below. As of December 31, 2021 and 2020, restricted cash for these purposes was $18.8 million and $30.3 million, respectively.

As of December 31, 2021, the remaining restricted cash of $71.7 million is primarily related to collateral as required by the FDIC for Square Financial Services. As of December 31, 2020, the remaining restricted cash of $13.5 million is primarily related to cash held as collateral pursuant to multi-year lease agreements (Note 18). The Company has recorded these amounts as non-current assets on the consolidated balance sheets as the terms of the related leases extend beyond one year, and the requirement by the FDIC specifies a time frame of 12 months or longer during which the cash must remain restricted.

Customer funds:
Customer funds represent customers' stored balances that customers would later use to send money or make payments, or customers cash in transit. Under the terms of service associated with these funds, the Company is restricted from using the funds from use in the Company's operations. The Company invests a portion of these stored balances in short-term marketable debt securities (Note 4). The Company determines the appropriate classification of the investments in marketable debt securities within customer funds at the time of purchase and reevaluates such designation at each balance sheet date.
Concentration of Credit Risk
Concentration of Credit Risk

For the years ended December 31, 2021, 2020 and 2019, the Company had no customer that accounted for greater than 10% of total net revenue.

The Company had two third-party payment processors that represented approximately 52% and 30% of settlements receivable as of December 31, 2021. As of December 31, 2020, there were two parties that represented approximately 59% and 27% of settlements receivable. All other third-party processors were insignificant.

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash, marketable debt securities, settlements receivable, customer funds, loans held for sale, and loans held for investment. The associated risk of concentration for cash and cash equivalents and restricted cash is mitigated by banking with creditworthy institutions. At certain times, amounts on deposit exceed federal deposit insurance limits. The associated risk of concentration for marketable debt securities is mitigated by holding a diversified portfolio of highly rated investments. Settlements receivable are amounts due from well-established payment processing companies and normally take one or two business days to settle which mitigates the associated risk of concentration. The associated risk of concentration for loans held for sale is partially mitigated by credit evaluations that are performed prior to facilitating the offering of loans and ongoing performance monitoring of the Company’s loan customers. The risk associated with the PPP loans is considered low due to government guarantees on those loans.
Investments in marketable debt securities and Investments in equity securities
Investments in marketable debt securities

The Company's short-term and long-term investments include marketable debt securities such as government and agency securities, corporate bonds, commercial paper and municipal securities. The Company determines the appropriate classification of its investments in marketable debt securities at the time of purchase and reevaluates such designation at each balance sheet date. The Company has classified and accounted for its marketable debt securities as available-for-sale and carries these investments at fair value, reporting the unrealized gains and losses, net of taxes, as a component of stockholders’ equity. The U.S. government and U.S. agency securities are either explicitly or implicitly guaranteed by the U.S. government and are highly rated by major rating agencies. The corporate bonds are issued by highly rated entities. The foreign government securities are issued by highly rated international entities. The Company has the ability and intent to hold these investments with unrealized losses for a reasonable period of time sufficient for the recovery of their amortized cost bases, which may be at maturity. The Company determines any realized gains or losses on the sale of marketable debt securities on a specific identification method, and records such gains and losses as a component of other expense (income), net.

Investments in equity securities

The Company holds marketable and non-marketable equity investments, over which the Company does not have a controlling interest or significant influence. Marketable equity investments are measured using quoted prices in active markets with changes recorded in other expense (income), net on the consolidated statements of operations. Non-marketable equity investments have no readily determinable fair values and are measured using the measurement alternative, which is defined as cost, less impairment, adjusted for observable price changes from orderly transactions for identical or similar investments of the same issuer. Adjustments are recorded in other expense (income), net on the consolidated statements of operations.

Non-marketable equity investments are valued using significant unobservable inputs or data in an inactive market and the valuation requires our judgment due to the absence of market prices and inherent lack of liquidity. The carrying value for these investments is not adjusted if there are no observable transactions for identical or similar investments of the same issuer or if there are no identified events or changes in circumstances that may indicate impairment. The Company will adjust for changes resulting from observable price changes in orderly transactions for an identical or similar investment in the same issue. Valuations of non-marketable equity investments are inherently complex due to the lack of readily available market data. In addition, the determination of whether an orderly transaction is for an identical or similar investment requires significant management judgment, including understanding the differences in the rights and obligations of the investments and the extent to which those differences would affect the fair values of those investments.

The Company assesses the impairment of its non-marketable equity investments on a quarterly basis. The impairment analysis encompasses an assessment of the severity and duration of the impairment and a qualitative and quantitative analysis of other key factors including the investee’s financial metrics, market acceptance of the investee’s product or technology, other competitive products or technology in the market, general market conditions, and the rate at which the investee is using its cash. If the investment is considered to be impaired, the Company will record an impairment in other expense (income), net on the consolidated statements of operations and establish a new carrying value for the investment.
Fair Value of Financial Instruments
Fair Value of Financial Instruments

The Company applies fair value accounting for all financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. Fair value accounting establishes a three-level hierarchy priority for disclosure of assets and liabilities recorded at fair value. The ordering of priority reflects the degree to which objective prices in external active markets are available to measure fair value. The classification of assets and liabilities within the hierarchy is based on whether the inputs to the valuation methodology used for measurement are observable or unobservable.

The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels:
•Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date.

•Level 2 Inputs: Other than quoted prices included in Level 1 Inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability.

•Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date.
Customer Loans
Customer Loans

Prior to April 2021, the Company purchased loans from an industrial bank partner. In April 2021, the Company began originating loans through Square Financial Services. The Company classifies customer loans that the Company has the intent to sell all of its rights, title, and interest in these loans to third-party investors as loans held for sale, as there is an available market for such loans. The Company classifies customer loans retained on its balance sheet that the Company has both the intent and ability to hold for the foreseeable future, or until maturity or payoff, as loans held for investment.
Loans Held for Sale Loans Held for Sale:Loans held for sale are recorded at the lower of amortized cost or fair value determined on an individual loan basis. To determine the fair value the Company utilizes discounted cash flow valuation modeling, taking into account the probability of default and estimated timing and amounts of periodic repayments. In estimating the expected timing and amounts of the future periodic repayments for the loans outstanding, the Company considered other relevant market data, including the impact of the COVID-19 pandemic. With respect to PPP loans, the Company also considers the impact of government guarantees and loan forgiveness on the timing and amounts of future cash flows. The Company recognizes a charge within transaction and loan losses in the consolidated statement of operations whenever the amortized cost of a loan exceeds its fair value, with such charges being reversed for subsequent increases in fair value, but only to the extent that such reversals do not result in the amortized cost of a loan exceeding its fair value. A loan that is initially designated as held for sale may be reclassified to held for investment if and when the Company's intent for that loan changes.
Loans Held for Investment
Loans Held for Investment:

Loans held for investment are recorded at amortized cost, less an allowance for potential uncollectible amounts. Amortized cost basis represents principal amounts outstanding, net of unearned income, unamortized deferred fees and costs on originated loans, premiums or discounts on purchased loans and charge-offs. The Company’s intent and ability to designate loans as held for investment in the future may change based on changes in business strategies, the economic environment, and market conditions.

The Company calculates an allowance for losses on the loans held for investment portfolio in accordance with ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The Company assesses impairment of its financial instruments based on current estimates of expected credit losses over the contractual term of its loans held for investment portfolio as of each balance sheet date. The Company determines the allowance for loan losses using both quantitative and qualitative methods and considers all available information relevant to assessing collectability. This includes but is not limited to: historical loss and recovery experience, recent and historical trends in delinquencies, past-due loans and charge-offs, borrower behavior and repayment speed, underwriting and collection management changes, changes in the legal and regulatory environment, changes in risk and underwriting standards, current and historical macroeconomic conditions such as changes in unemployment and GDP, and various other factors that may affect the sellers’ ability to make future payments.
Settlements Receivable
Settlements Receivable
    
Settlements receivable represents amounts due from third-party payment processors for customer transactions. Settlements receivable are typically received within one or two business days of the transaction date. No valuation allowances have been established, as funds are due from large, well-established financial institutions with no historical collections issue.
Inventory InventoryInventory is comprised of contactless and chip readers, chip card readers, Square Stand, Square Register, Square Terminal and third-party peripherals, as well as component parts that are used to manufacture these products. Inventory is stated at the lower of cost (generally on a first-in, first-out basis) or net realizable value. Inventory that is obsolete or in excess of forecasted usage is written down to its net realizable value based on the estimated selling prices in the ordinary course of business. The Company's inventory is held at third party warehouses and contract manufacturer premises.
Deferred Revenue Deferred RevenueDeferred revenue is primarily comprised of payments for website hosting and domain name registration received from customers at inception of the arrangements prior to the services being rendered.
Investments in bitcoin Investments in bitcoinBitcoin is a cryptocurrency that is considered to be an indefinite lived intangible asset because bitcoin lacks physical form and there is no limit to its useful life. Accordingly, bitcoin is not subject to amortization but is tested for impairment on a daily basis to assess if it is more likely than not that it is impaired. The Company has concluded that because bitcoin is traded in an active market where there are observable prices, a decline in the quoted price below cost is generally viewed as an impairment indicator, in which case the fair value is used to assess whether an impairment loss should be recorded. If the fair value of bitcoin decreases below the carrying value during the assessed period an impairment charge is recognized at that time. After an impairment loss is recognized, the adjusted carrying amount of bitcoin becomes its new accounting basis. A subsequent reversal of a previously recognized impairment loss is prohibited until the sale of the asset.
Property and Equipment
Property and Equipment

Property and equipment are recorded at historical cost less accumulated depreciation, which is computed on a straight-line basis over the asset’s estimated useful life. The estimated useful lives of property and equipment are described below:

Property and EquipmentUseful Life
Capitalized software18 months
Computer and data center equipment
Three years
Furniture and fixturesSeven years
Leasehold improvements
Lesser of ten years or remaining lease term
Capitalized Software Capitalized SoftwareThe Company capitalizes certain costs incurred in developing internal-use software when capitalization requirements have been met. Costs prior to meeting the capitalization requirements are expensed as incurred. Capitalized costs are included in property and equipment, net, and amortized on a straight-lined basis over the estimated useful life of the software and included in product development costs on the consolidated statements of operations.
Leases
Leases

The Company leases office space and equipment under non-cancellable finance and operating leases with various expiration dates.

The Company adopted Accounting Standards Codification (ASC) 842, Leases (ASC 842) on January 1, 2019, and elected the optional transition method to apply the transition provisions from the effective date of adoption, which requires the Company to report the cumulative effect of the adoption of the standard on the date of adoption with no changes to the prior period balances. Pursuant to the practical expedients, the Company elected not to reassess: (i) whether expired or existing contracts are or contain leases, (ii) the lease classification for any expired or existing leases, or, (iii) initial direct costs for any existing leases. The Company elected to apply the short-term lease measurement and recognition exemption to its leases where applicable. Operating lease right-of-use assets and operating lease liabilities are recognized at the present value of the future lease payments, generally for the base noncancellable lease term, at the lease commencement date for each lease. The interest rate used to determine the present value of the future lease payments is the Company's incremental borrowing rate because the interest rate implicit in most of the Company's leases is not readily determinable. The Company's incremental borrowing rate is estimated to approximate the interest rate that the Company would pay to borrow on a collateralized basis with similar terms and payments as the lease, and in economic environments where the leased asset is located. Operating lease right-of-use assets also include any prepaid lease payments and lease incentives. The Company's lease agreements generally contain lease and non-lease components. Non-lease components, which primarily include payments for maintenance and utilities, are combined with lease payments and accounted for as a single lease component. The Company includes the fixed non-lease components in the determination of the right-of-use assets and operating lease liabilities. Variable lease payments are not included in the calculation of the right-of-use asset and lease liability, and they are recognized as lease expense is incurred. Variable lease payments predominantly relate to variable operating expenses, taxes, parking, and electricity. The Company records the amortization of the right of use asset and the accretion of lease liability as a component of rent expense in the consolidated statement of operations. The accounting for finance leases remained substantially unchanged.

When lease agreements provide allowances for leasehold improvements, the Company assesses whether it is the owner of the leasehold improvements for accounting purposes. When the Company concludes that it is the owner, it capitalizes the leasehold improvement assets and recognizes the related depreciation expense on a straight-line basis over the lesser of the lease term or the estimated useful life of the asset. Additionally, the Company recognizes the amounts of allowances to be received from the lessor as a reduction of the lease liability and the associated right of use asset. When the Company concludes that it is not the owner, the payments that the Company makes towards the leasehold improvements are accounted as a component of the lease payments.
The Company records a liability for the estimated fair value for asset retirement obligations (ARO) associated with its leases, with an offsetting asset. In the determination of the fair value of AROs, the Company uses various assumptions and judgments, including such factors as the existence of a legal obligation, estimated amounts and timing of settlements, and discount rates. The liability is subsequently accreted while the asset is depreciated.
Asset Retirement Obligations The Company records a liability for the estimated fair value for asset retirement obligations (ARO) associated with its leases, with an offsetting asset. In the determination of the fair value of AROs, the Company uses various assumptions and judgments, including such factors as the existence of a legal obligation, estimated amounts and timing of settlements, and discount rates. The liability is subsequently accreted while the asset is depreciated.
Business Combinations
Business Combinations

The purchase price of an acquisition is allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the acquisition dates. The excess of total consideration over the fair values of the assets acquired and the liabilities assumed is recorded as goodwill. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments would be recorded on the consolidated statements of operations.
Long-lived Assets, including Goodwill and Acquired Intangibles
Long-Lived Assets, including Goodwill and Acquired Intangibles

The Company evaluates the recoverability of property and equipment and finite lived intangible assets for impairment whenever events or circumstances indicate that the carrying amounts of such assets may not be recoverable. Recoverability is measured by comparing the carrying amount of an asset or an asset group to estimated undiscounted future net cash flows expected to be generated. If the carrying amount of the long–lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values, and third–party independent appraisals, as considered necessary. For the periods presented, the Company recorded no impairment charges.

The Company performs a goodwill impairment test annually on December 31 and more frequently if events and circumstances indicate that the asset might be impaired. An impairment loss is recognized to the extent that the carrying amount exceeds the reporting unit’s fair value. The Company first assesses qualitative factors to determine whether events or circumstances indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying amount and determine whether further action is needed. If, after assessing the totality of events or circumstances, the Company determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. For the periods presented, the Company had recorded no impairment charges.

Acquired intangibles consist of acquired technology and customer relationships associated with various acquisitions. Acquired technology is amortized over its estimated useful life on a straight-line basis within cost of revenue. Customer relationships acquired are amortized on a straight-line basis over their estimated useful lives within operating expenses. The Company evaluates the remaining estimated useful life of its intangible assets being amortized on an ongoing basis to determine whether events and circumstances warrant a revision to the remaining period of amortization.
Customers Payable Customers PayableCustomers payable represents the transaction amounts, less revenue earned by the Company, owed to sellers or Cash App customers. The payable amount comprises amounts owed to customers due to timing differences as the Company typically settles within one business day, amounts held by the Company in accordance with its risk management policies, and amounts held for customers who have not yet linked a bank account. This balance also includes the Company's liability for customer funds held on deposit in the Cash App.
Accrued Transaction Losses Accrued Transaction LossesThe 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, disputes between a seller and their customer, or due to fraudulent transactions. Accrued transaction losses also include estimated losses on Cash App activity related to peer-to-peer payments sent from a credit card, Cash for Business, and Cash Card. 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 Company also considers other relevant market data in developing such estimates and assumptions, including the impact of the COVID-19 pandemic. Additions to the reserve are reflected in current operating results, while realized losses are offset against the reserve. These amounts are classified within transaction and loan losses on the consolidated statements of operations, except for the amounts associated with the peer-to-peer service offered to Cash App customers for free that are classified within sales and marketing expenses.
Segments
Segments

Effective June 30, 2020, the Company changed its operating segments to reflect the manner in which the Company's Chief Operating Decision Maker ("CODM") reviews and assesses performance. The Company has two reportable segments, which are Square (formerly Seller) and Cash App. Square includes managed payment services, software solutions, hardware and financial services products offered to sellers, while Cash App includes financial tools available to individuals such as P2P (peer-to-peer) payments, Cash Card transactions, bitcoin and stock investing that enable customers to easily send, spend, and store money. Products and services that are not assigned to a specific reportable segment including TIDAL, TBD, and Spiral are aggregated and presented within a general corporate and other category, as their results of operations are immaterial.
Recent Accounting Pronouncements
Recent Accounting Pronouncements
Recently adopted accounting pronouncements

In August 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity's Own Equity, as part of its overall simplification initiative to reduce costs and complexity of applying accounting standards while maintaining or improving the usefulness of the information provided to users of financial statements. The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years, with early adoption permitted, but only at the beginning of the fiscal year. The Company early adopted the new guidance on January 1, 2021 using the modified retrospective approach and recorded a cumulative effect upon adoption of $103.0 million as a reduction to accumulated deficit and a reduction to other paid in capital of $502.7 million related to amounts attributable to conversion options that had previously been recorded in equity. Additionally, the Company recorded an increase to its convertible notes balance by an aggregate amount of $399.7 million as a result of the reversal of the separation of the convertible debt between debt and equity. The adoption of this standard also significantly decreased the amount of non-cash interest expense to be recognized in future periods as a result of eliminating the discount associated with the equity component. There was no impact to the Company’s statements of cash flows as the result of the adoption of ASU No. 2020-06.

In October 2020, the FASB issued ASU No. 2020-10, Codification Improvements ("Codification"). The update provides incremental improvements on various topics in the Codification to provide clarification, correct errors in, and to provide simplification on a variety of topics. Among other items, the guidance includes presentation disclosures for the amount of income tax expense or benefit related to other comprehensive income. The amendments are effective for public entities in fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Early adoption is permitted. The Company adopted this guidance effective January 1, 2021 and has applied the guidance prospectively. The adoption of this guidance did not have a material impact on the Company’s financial statements and related disclosures.
Recently issued accounting pronouncements not yet adopted

In July 2021, the FASB issued ASU No. 2021-05 ("ASU 2021-05") "Lease (Topic 842): Lessors - Certain Leases with Variable Lease Payments" which amends the lease classification requirements for lessors with certain leases containing variable payments. A lessor should classify and account for a lease with variable lease payments that do not depend on an index or a rate as an operating lease if both of the following criteria are met: 1) the lease would have been classified as a sales-type lease or a direct financing lease; and 2) the lessor would have otherwise recognized a day-one loss. The amendments in ASU 2021-05 are effective for fiscal years beginning after December 15, 2021, with early adoption permitted. The Company is evaluating the effect of adopting this new accounting guidance, but does not expect the adoption to have a material impact on the Company’s financial statements.

In May 2021, the FASB issued ASU No. 2021-04 (“ASU 2021-04”) “Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation— Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40)” which provides guidance on modifications or exchanges of a freestanding equity-classified written call option that is not within the scope of another Topic. An entity should treat a modification of the terms or conditions or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange as an exchange of the original instrument for a new instrument, and provides further guidance on measuring the effect of a modification or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange. ASU 2021-04 also provides guidance on the recognition of the effect of a modification or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange on the basis of the substance of the transaction, in the same manner as if cash had been paid as consideration. The amendments are effective for all entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted. The Company is evaluating the effect of adopting this new accounting guidance, but does not expect adoption to have a material impact on the Company’s financial statements.

In October 2021, the FASB issued ASU No 2021-08 ("ASU 2021-08") "Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers" which requires entities to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. Under current GAAP, an acquirer generally recognizes assets acquired and liabilities assumed in a business combination, including contract assets and contract liabilities arising from revenue contracts with customers, at fair value on the acquisition date. The amendments in ASU 2021-08 will result in the acquirer recording acquired contract assets and liabilities on the same basis that would have been recorded by the acquiree before the acquisition under ASC Topic 606. The amendments in ASU 2021-08 are effective for fiscal years beginning after December 15, 2022, with early adoption permitted. The Company is evaluating the effect of adopting this new accounting guidance.
v3.22.0.1
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 12 Months Ended
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Prior Period Adjustments
The following tables present the effects of the changes on the presentation of these cash flows to the previously reported consolidated statements of cash flows:

Year Ended December 31, 2020
Net cash provided by (used in):
As Previously Reported (i)
AdjustmentsAs Adjusted
Operating activities (ii)
$381,603 $(208,493)$173,110 
Investing activities (606,636)— (606,636)
Financing activities (iii)
2,315,195 1,361,540 3,676,735 
Effect of foreign exchange rate on cash and cash equivalents12,995 — 12,995 
Net increase in cash, cash equivalents, restricted cash and customer funds2,103,157 1,153,047 3,256,204 
Cash, cash equivalents, restricted cash and customer funds, beginning of the year1,098,706 438,261 1,536,967 
Cash, cash equivalents, restricted cash and customer funds, end of the year$3,201,863 $1,591,308 $4,793,171 
___________________
(i)As reported in our 2020 Form 10-K filed with the SEC on February 23, 2021.
(ii)Financial statement lines impacted in operating activities were Customer funds and Customers payable.
(iii)Financial statement line impacted in financing activities was the addition of a new line called Change in customer funds, restricted from use in the Company's operations.
Year Ended December 31, 2019
Net cash provided by (used in):
As Previously Reported (i)
AdjustmentsAs Adjusted
Operating activities (ii)
$465,699 $(138,069)$327,630 
Investing activities 95,193 — 95,193 
Financing activities (iii)
(98,874)342,275 243,401 
Effect of foreign exchange rate on cash and cash equivalents3,841 — 3,841 
Net increase in cash, cash equivalents, restricted cash and customer funds465,859 204,206 670,065 
Cash, cash equivalents, restricted cash and customer funds, beginning of the year632,847 234,055 866,902 
Cash, cash equivalents, restricted cash and customer funds, end of the year$1,098,706 $438,261 $1,536,967 
___________________
(i)As reported in our 2019 Form 10-K filed with the SEC on February 26, 2020.
(ii)Financial statement lines impacted in operating activities were Customer funds and Customers payable.
(iii)Financial statement line impacted in financing activities was the addition of a new line called Change in customer funds, restricted from use in the Company's operations.
Estimated Useful Lives of Property and Equipment The estimated useful lives of property and equipment are described below:
Property and EquipmentUseful Life
Capitalized software18 months
Computer and data center equipment
Three years
Furniture and fixturesSeven years
Leasehold improvements
Lesser of ten years or remaining lease term
The following is a summary of property and equipment, less accumulated depreciation and amortization (in thousands):
December 31,
2021		December 31,
2020
Leasehold improvements$208,228 $168,125 
Computer equipment174,004 139,174 
Capitalized software116,827 119,452 
Office furniture and equipment42,393 34,890 
Total541,452 461,641 
Less: Accumulated depreciation and amortization(259,312)(228,121)
Property and equipment, net$282,140 $233,520 
v3.22.0.1
REVENUE (Tables)
 12 Months Ended
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
The following table presents the Company's revenue disaggregated by revenue source (in thousands):
Year Ended December 31,
202120202019
Revenue from Contracts with Customers:
Transaction-based revenue$4,793,146 $3,294,978 $3,081,074 
Subscription and services-based revenue2,445,811 1,447,188 883,922 
Hardware revenue145,679 91,654 84,505 
Bitcoin revenue10,012,647 4,571,543 516,465 
Revenue from other sources:
Subscription and services-based revenue263,920 92,215 147,534 
Total net revenue$17,661,203 $9,497,578 $4,713,500 
v3.22.0.1
INVESTMENTS IN DEBT SECURITIES (Tables)
 12 Months Ended
Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]  
Short-term and Long-term Investments
The Company's short-term and long-term investments as of December 31, 2021 are as follows (in thousands):
Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Short-term debt securities:
U.S. agency securities$73,986 $150 $(8)$74,128 
Corporate bonds293,460 128 (269)293,319 
Commercial paper36,088 — — 36,088 
Municipal securities5,543 5 — 5,548 
Certificates of deposit9,200 — — 9,200 
U.S. government securities430,992 106 (255)430,843 
Foreign government securities20,256 19 (118)20,157 
Total$869,525 $408 $(650)$869,283 
Long-term debt securities:
U.S. agency securities$154,454 $26 $(1,160)$153,320 
Corporate bonds667,699 80 (4,572)663,207 
Municipal securities22,541 2 (126)22,417 
U.S. government securities678,553 3 (4,080)674,476 
Foreign government securities13,084 — (74)13,010 
Total$1,536,331 $111 $(10,012)$1,526,430 
    
The Company's short-term and long-term investments as of December 31, 2020 are as follows (in thousands):
Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Short-term debt securities:
U.S. agency securities$153,386 $782 $(164)$154,004 
Corporate bonds76,957 256 (14)77,199 
Commercial paper4,999 — — 4,999 
Municipal securities10,377 57 (3)10,431 
U.S. government securities404,194 1,244 (4)405,434 
Foreign government securities42,988 139 (82)43,045 
Total$692,901 $2,478 $(267)$695,112 
Long-term debt securities:
U.S. agency securities$168,762 $519 $(3)$169,278 
Corporate bonds174,655 1,401 (42)176,014 
Municipal securities1,045 15 — 1,060 
U.S. government securities91,642 433 (2)92,073 
Foreign government securities25,351 184 (10)25,525 
Total$461,455 $2,552 $(57)$463,950 
The Company invests customer funds in short-term debt securities, as follows as of December 31, 2021 (in thousands):
Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Short-term debt securities:
U.S. agency securities$30,002 $— $(8)$29,994 
U.S. government securities360,251 — (191)360,060 
Total$390,253 $— $(199)$390,054 


The Company invests customer funds in short-term debt securities, as follows as of December 31, 2020 (in thousands):
Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Short-term debt securities:
U.S. agency securities$113,156 $22 $— $113,178 
U.S. government securities333,323 28 (5)333,346 
Total$446,479 $50 $(5)$446,524 
Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value
The Company's gross unrealized losses and fair values for those investments that were in an unrealized loss position as of December 31, 2021 and 2020, aggregated by investment category and the length of time that individual securities have been in a continuous loss position are as follows (in thousands):

December 31, 2021
Less than 12 monthsGreater than 12 monthsTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Short-term debt securities:
U.S. agency securities$26,749 $(8)$— $— $26,749 $(8)
Corporate bonds241,792 (269)311 — 242,103 (269)
U.S. government securities347,380 (255)— — 347,380 (255)
Foreign government securities12,734 (118)— — 12,734 (118)
Total$628,655 $(650)$311 $— $628,966 $(650)
Long-term debt securities:
U.S. agency securities$151,472 $(1,160)$— $— $151,472 $(1,160)
Corporate bonds627,467 (4,572)— — 627,467 (4,572)
Municipal securities18,616 (126)— — 18,616 (126)
U.S. government securities639,473 (4,080)— — 639,473 (4,080)
Foreign government securities13,010 (74)— — 13,010 (74)
Total$1,450,038 $(10,012)$— $— $1,450,038 $(10,012)

December 31, 2020
Less than 12 monthsGreater than 12 monthsTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Short-term debt securities:
U.S. agency securities$41,711 $(162)$2,505 $(2)$44,216 $(164)
Corporate bonds15,255 (14)— — 15,255 (14)
Municipal securities2,566 (3)— — 2,566 (3)
U.S. government securities45,970 (4)— — 45,970 (4)
Foreign government securities21,341 (82)— — 21,341 (82)
Total$126,843 $(265)$2,505 $(2)$129,348 $(267)
Long-term debt securities:
U.S. agency securities$1,406 $(3)$— $— $1,406 $(3)
Corporate bonds28,189 (42)— — 28,189 (42)
U.S. government securities8,658 (2)— — 8,658 (2)
Foreign government securities10,929 (10)— — 10,929 (10)
Total$49,182 $(57)$— $— $49,182 $(57)
The gross unrealized losses and fair values for those investments that were in an unrealized loss position as of December 31, 2021 and 2020, aggregated by investment category and the length of time that individual securities have been in a continuous loss position are as follows (in thousands):
December 31, 2021
Less than 12 monthsGreater than 12 monthsTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Short-term debt securities:
U.S. agency securities$29,994 $(7)$— $— $29,994 $(7)
U.S. government securities360,060 (191)— — 360,060 (191)
Total$390,054 $(198)$— $— $390,054 $(198)

December 31, 2020
Less than 12 monthsGreater than 12 monthsTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Short-term debt securities:
U.S. government securities$73,609 $(5)$— $— $73,609 $(5)
Total$73,609 $(5)$— $— $73,609 $(5)
Contractual Maturities of Short-Term and Long-Term Investments
The contractual maturities of the Company's short-term and long-term investments as of December 31, 2021 are as follows (in thousands):
Amortized CostFair Value
Due in one year or less$869,525 $869,283 
Due in one to five years1,536,331 1,526,430 
Total$2,405,856 $2,395,713 
The contractual maturities of the Company's investments within customer funds as of December 31, 2021 are as follows (in thousands):
Amortized CostFair Value
Due in one year or less$390,253 $390,054 
Due in one to five years— — 
Total$390,253 $390,054 
v3.22.0.1
CUSTOMER FUNDS (Tables)
 12 Months Ended
Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]  
Assets Underlying Customer Funds
The following table presents the assets underlying customer funds (in thousands):
December 31,
2021		December 31,
2020
Cash$242,243 $145,577 
Customer funds in transit— 262,562 
Cash equivalents:
Money market funds2,126,579 777,193 
Reverse repurchase agreement (i)72,119 246,880 
U.S. agency securities— 47,300 
U.S. government securities— 111,796 
Short-term debt securities:
U.S. agency securities29,994 113,178 
U.S. government securities360,060 333,346 
Total$2,830,995 $2,037,832 

(i) The Company has accounted for the reverse repurchase agreement with a third party as an overnight lending arrangement, collateralized by the securities subject to the repurchase agreement. The Company classifies the amounts due from the counterparty as cash equivalents due to the short term nature.
Investments within Customer Funds
The Company's short-term and long-term investments as of December 31, 2021 are as follows (in thousands):
Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Short-term debt securities:
U.S. agency securities$73,986 $150 $(8)$74,128 
Corporate bonds293,460 128 (269)293,319 
Commercial paper36,088 — — 36,088 
Municipal securities5,543 5 — 5,548 
Certificates of deposit9,200 — — 9,200 
U.S. government securities430,992 106 (255)430,843 
Foreign government securities20,256 19 (118)20,157 
Total$869,525 $408 $(650)$869,283 
Long-term debt securities:
U.S. agency securities$154,454 $26 $(1,160)$153,320 
Corporate bonds667,699 80 (4,572)663,207 
Municipal securities22,541 2 (126)22,417 
U.S. government securities678,553 3 (4,080)674,476 
Foreign government securities13,084 — (74)13,010 
Total$1,536,331 $111 $(10,012)$1,526,430 
    
The Company's short-term and long-term investments as of December 31, 2020 are as follows (in thousands):
Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Short-term debt securities:
U.S. agency securities$153,386 $782 $(164)$154,004 
Corporate bonds76,957 256 (14)77,199 
Commercial paper4,999 — — 4,999 
Municipal securities10,377 57 (3)10,431 
U.S. government securities404,194 1,244 (4)405,434 
Foreign government securities42,988 139 (82)43,045 
Total$692,901 $2,478 $(267)$695,112 
Long-term debt securities:
U.S. agency securities$168,762 $519 $(3)$169,278 
Corporate bonds174,655 1,401 (42)176,014 
Municipal securities1,045 15 — 1,060 
U.S. government securities91,642 433 (2)92,073 
Foreign government securities25,351 184 (10)25,525 
Total$461,455 $2,552 $(57)$463,950 
The Company invests customer funds in short-term debt securities, as follows as of December 31, 2021 (in thousands):
Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Short-term debt securities:
U.S. agency securities$30,002 $— $(8)$29,994 
U.S. government securities360,251 — (191)360,060 
Total$390,253 $— $(199)$390,054 


The Company invests customer funds in short-term debt securities, as follows as of December 31, 2020 (in thousands):
Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Short-term debt securities:
U.S. agency securities$113,156 $22 $— $113,178 
U.S. government securities333,323 28 (5)333,346 
Total$446,479 $50 $(5)$446,524 
Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value
The Company's gross unrealized losses and fair values for those investments that were in an unrealized loss position as of December 31, 2021 and 2020, aggregated by investment category and the length of time that individual securities have been in a continuous loss position are as follows (in thousands):

December 31, 2021
Less than 12 monthsGreater than 12 monthsTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Short-term debt securities:
U.S. agency securities$26,749 $(8)$— $— $26,749 $(8)
Corporate bonds241,792 (269)311 — 242,103 (269)
U.S. government securities347,380 (255)— — 347,380 (255)
Foreign government securities12,734 (118)— — 12,734 (118)
Total$628,655 $(650)$311 $— $628,966 $(650)
Long-term debt securities:
U.S. agency securities$151,472 $(1,160)$— $— $151,472 $(1,160)
Corporate bonds627,467 (4,572)— — 627,467 (4,572)
Municipal securities18,616 (126)— — 18,616 (126)
U.S. government securities639,473 (4,080)— — 639,473 (4,080)
Foreign government securities13,010 (74)— — 13,010 (74)
Total$1,450,038 $(10,012)$— $— $1,450,038 $(10,012)

December 31, 2020
Less than 12 monthsGreater than 12 monthsTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Short-term debt securities:
U.S. agency securities$41,711 $(162)$2,505 $(2)$44,216 $(164)
Corporate bonds15,255 (14)— — 15,255 (14)
Municipal securities2,566 (3)— — 2,566 (3)
U.S. government securities45,970 (4)— — 45,970 (4)
Foreign government securities21,341 (82)— — 21,341 (82)
Total$126,843 $(265)$2,505 $(2)$129,348 $(267)
Long-term debt securities:
U.S. agency securities$1,406 $(3)$— $— $1,406 $(3)
Corporate bonds28,189 (42)— — 28,189 (42)
U.S. government securities8,658 (2)— — 8,658 (2)
Foreign government securities10,929 (10)— — 10,929 (10)
Total$49,182 $(57)$— $— $49,182 $(57)
The gross unrealized losses and fair values for those investments that were in an unrealized loss position as of December 31, 2021 and 2020, aggregated by investment category and the length of time that individual securities have been in a continuous loss position are as follows (in thousands):
December 31, 2021
Less than 12 monthsGreater than 12 monthsTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Short-term debt securities:
U.S. agency securities$29,994 $(7)$— $— $29,994 $(7)
U.S. government securities360,060 (191)— — 360,060 (191)
Total$390,054 $(198)$— $— $390,054 $(198)

December 31, 2020
Less than 12 monthsGreater than 12 monthsTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Short-term debt securities:
U.S. government securities$73,609 $(5)$— $— $73,609 $(5)
Total$73,609 $(5)$— $— $73,609 $(5)
Contractual Maturities of Short-Term and Long-Term Investments
The contractual maturities of the Company's short-term and long-term investments as of December 31, 2021 are as follows (in thousands):
Amortized CostFair Value
Due in one year or less$869,525 $869,283 
Due in one to five years1,536,331 1,526,430 
Total$2,405,856 $2,395,713 
The contractual maturities of the Company's investments within customer funds as of December 31, 2021 are as follows (in thousands):
Amortized CostFair Value
Due in one year or less$390,253 $390,054 
Due in one to five years— — 
Total$390,253 $390,054 
v3.22.0.1
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)
 12 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis The Company’s financial assets and liabilities that are measured at fair value on a recurring basis are classified as follows (in thousands):
December 31, 2021December 31, 2020
Level 1Level 2Level 3Level 1Level 2Level 3
Cash Equivalents:
Money market funds$2,344,768 $— $— $1,694,736 $— $— 
U.S. agency securities— 22,999 — — 41,186 — 
Certificates of deposit— 4,983 — — — — 
Corporate bonds— 790 — — — — 
U.S. government securities— — — 15,000 — — 
Customer funds:
Money market funds2,126,579 — — 777,193 — — 
Reverse repurchase agreement72,119 — — 246,880 — — 
U.S. agency securities— 29,994 — — 160,478 — 
U.S. government securities360,060 — — 445,142 — — 
Short-term debt securities:
U.S. agency securities— 74,128 — — 154,004 — 
Certificates of deposit— 9,200 — — — — 
Corporate bonds— 293,319 — — 77,199 — 
Commercial paper— 36,088 — — 4,999 — 
Municipal securities— 5,548 — — 10,431 — 
U.S. government securities430,843 — 405,434 — — 
Foreign government securities— 20,157 — — 43,045 — 
Long-term debt securities:
U.S. agency securities— 153,320 — — 169,278 — 
Corporate bonds— 663,207 — — 176,014 — 
Municipal securities— 22,417 — — 1,060 — 
U.S. government securities674,476 — — 92,073 — — 
Foreign government securities— 13,010 — — 25,525 — 
Other:
Investment in marketable equity security— — — 376,258 — — 
Total$6,008,845 $1,349,160 $— $4,052,716 $863,219 $— 
The estimated fair value and carrying value of the convertible and senior notes were as follows (in thousands):
December 31, 2021December 31, 2020
Carrying ValueFair Value (Level 2)Carrying ValueFair Value (Level 2)
2031 Senior Notes$986,774 $1,018,113 $— $— 
2026 Senior Notes987,626 994,579 — — 
2027 Convertible Notes567,208 614,286 458,496 644,000 
2026 Convertible Notes567,621 595,548 482,204 638,250 
2025 Convertible Notes990,361 1,477,302 858,332 1,912,440 
2023 Convertible Notes459,618 958,927 780,046 2,417,820 
2022 Convertible Notes455 3,192 7,846 80,731 
Total$4,559,663 $5,661,947 $2,586,924 $5,693,241 

The estimated fair value and carrying value of loans held for sale and loans held for investment is as follows (in thousands):
December 31, 2021December 31, 2020
Carrying ValueFair Value (Level 3)Carrying ValueFair Value (Level 3)
Loans held for sale$517,940 $574,982 $462,665 $467,805 
Loans held for investment91,447 95,746 — — 
Total$609,387 $670,728 $462,665 $467,805 
v3.22.0.1
PROPERTY AND EQUIPMENT, NET (Tables)
 12 Months Ended
Dec. 31, 2021
Property, Plant and Equipment [Abstract]  
Schedule of Property and Equipment, Net The estimated useful lives of property and equipment are described below:
Property and EquipmentUseful Life
Capitalized software18 months
Computer and data center equipment
Three years
Furniture and fixturesSeven years
Leasehold improvements
Lesser of ten years or remaining lease term
The following is a summary of property and equipment, less accumulated depreciation and amortization (in thousands):
December 31,
2021		December 31,
2020
Leasehold improvements$208,228 $168,125 
Computer equipment174,004 139,174 
Capitalized software116,827 119,452 
Office furniture and equipment42,393 34,890 
Total541,452 461,641 
Less: Accumulated depreciation and amortization(259,312)(228,121)
Property and equipment, net$282,140 $233,520 
v3.22.0.1
ACQUISITIONS (Tables)
 12 Months Ended
Dec. 31, 2021
Business Combination and Asset Acquisition [Abstract]  
Schedule of Business Acquisitions
The table below summarizes the consideration paid for TIDAL and the fair value of the assets acquired and liabilities assumed at the closing date (in thousands, except share data).
Consideration:
Cash$176,663 
Deferred consideration46,475 
Stock (41,138 shares of Class A common stock)
10,071 
$233,209 
Recognized amounts of identifiable assets acquired and liabilities assumed:
Current assets (inclusive of cash acquired of $12,358)
$29,621 
Intangible customer assets69,000 
Intangible technology assets29,000 
Intangible trade name35,000 
Intangible other assets8,000 
Other non-current assets33,443 
Accrued expenses and other current liabilities(67,789)
Other non-current liabilities(52,759)
Total identifiable net assets acquired83,516 
Noncontrolling interests(48,192)
Goodwill197,885 
Total$233,209 
v3.22.0.1
GOODWILL (Tables)
 12 Months Ended
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Change in Carrying Value of Goodwill
The change in carrying value of goodwill in the period was as follows (in thousands):
Balance at December 31, 2019$266,345 
Acquisitions completed during the year ended December 31, 202049,571 
Other adjustments785 
Balance at December 31, 2020316,701 
Acquisitions completed during the year ended December 31, 2021203,079 
Other adjustments(504)
Balance at December 31, 2021$519,276 
The change in carrying value of goodwill allocated to the reportable segments in the period was as follows (in thousands):
Cash AppSquareCorporate and OtherTotal
Balance as of June 30, 2020$112,389 $183,371 $— $295,760 
Acquisitions15,587 4,492 — 20,079 
Other adjustments862 — — 862 
Balance as of December 31, 2020128,838 187,863 — 316,701 
Acquisitions— 5,194 197,885 203,079 
Other adjustments(504)— — (504)
Balance as of December 31, 2021$128,334 $193,057 $197,885 $519,276 
v3.22.0.1
ACQUIRED INTANGIBLE ASSETS (Tables)
 12 Months Ended
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Finite Lived Intangible Assets
The following table presents the detail of acquired intangible assets as of the periods presented (in thousands):

Balance at December 31, 2021
Weighted Average Estimated Useful LifeCostAccumulated AmortizationNet
Technology assets5 years$164,977 $(65,619)$99,358 
Customer assets15 years128,316 (19,244)109,072 
Trade name9 years53,051 (14,169)38,882 
Other9 years13,743 (4,006)9,737 
Total$360,087 $(103,038)$257,049 

Balance at December 31, 2020
Weighted Average Estimated Useful LifeCostAccumulated AmortizationNet
Technology assets5 years$119,508 $(43,084)$76,424 
Customer assets11 years58,556 (10,796)47,760 
Trade name6 years18,529 (8,031)10,498 
Other8 years5,733 (2,803)2,930 
Total$202,326 $(64,714)$137,612 
The changes to the carrying value of intangible assets were as follows (in thousands):
Year Ended December 31,
202120202019
Acquired intangible assets, net, beginning of the period$137,612 $69,079 $77,102 
Acquisitions159,100 85,960 14,559 
Amortization expense(40,522)(19,239)(15,000)
Sale of asset group— — (7,582)
Other adjustments859 1,812 — 
Acquired intangible assets, net, end of the period$257,049 $137,612 $69,079 
Future Amortization Expense of Intangible Assets The estimated future amortization expense of intangible assets as of December 31, 2021 is as follows (in thousands):
2022$42,908 
202341,657 
202438,679 
202531,852 
202618,201 
Thereafter83,752 
Total$257,049 
v3.22.0.1
OTHER CONSOLIDATED BALANCE SHEET COMPONENTS (CURRENT) (Tables)
 12 Months Ended
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Other Current Assets
The following table presents the detail of other current assets (in thousands):
    
December 31,
2021		December 31,
2020
Inventory, net$77,058 $61,129 
Restricted cash18,778 30,279 
Processing costs receivable228,914 148,606 
Prepaid expenses63,341 34,279 
Accounts receivable, net89,702 41,960 
Loans held for investment, net of allowance for loan losses (i)91,447 — 
Other118,189 66,814 
Total$687,429 $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):
December 31,
2021		December 31,
2020
Accrued expenses$254,900 $126,710 
Accrued royalties53,616 — 
Accrued transaction losses (i)55,167 70,557 
Accounts payable82,173 47,089 
Deferred revenue, current48,462 44,908 
Current portion of long-term debt455 — 
Other144,536 71,586 
Total$639,309 $360,850 
(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.
The reconciliation of the beginning and ending accrued transaction losses is as follows:
Year Ended December 31,
20212020
Accrued transaction losses, beginning of the year$70,557 $34,771 
Provision for transaction losses63,436 109,399 
Charge-offs to accrued transaction losses(78,826)(73,613)
Accrued transaction losses, end of the year$55,167 $70,557 
Reserve for Transaction Losses
The reconciliation of the beginning and ending accrued transaction losses is as follows:
Year Ended December 31,
20212020
Accrued transaction losses, beginning of the year$70,557 $34,771 
Provision for transaction losses63,436 109,399 
Charge-offs to accrued transaction losses(78,826)(73,613)
Accrued transaction losses, end of the year$55,167 $70,557 
v3.22.0.1
OTHER CONSOLIDATED BALANCE SHEET COMPONENTS (NON-CURRENT) (Tables)
 12 Months Ended
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Other Non-Current Assets
The following table presents the detail of other non-current assets (in thousands):
December 31,
2021		December 31,
2020
Investment in non-marketable equity securities (i)$81,919 $32,510 
Investment in marketable equity security (ii)— 376,258 
Investment in bitcoin, net (iii)149,000 50,000 
Restricted cash71,702 13,526 
Other67,914 26,956 
Total$370,535 $499,250 

(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 public 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 consolidated statement of operations. During the year ended December 31, 2021, the Company recorded a net loss of $12.4 million, arising from the revaluation of the non-marketable investments.

(ii) In December 2020, upon DoorDash's initial public offering, the shares of preferred stock held by the Company converted into Class A common stock of DoorDash. The investment was carried at fair value, with changes in fair value being recorded within other income or expense on the consolidated statement of operations. During the year ended December 31, 2021, the Company recorded a net gain of $44.4 million. In June 2021, the Company completed the sale of its remaining investment in DoorDash, which will have no further impact on the Company's results in future periods.

(iii) The Company invested $50.0 million and $170.0 million in bitcoin in the fourth quarter of 2020 and the first quarter of 2021, respectively. 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 recorded impairment losses of $71.1 million in the year ended December 31, 2021 due to the observed market price of bitcoin decreasing below the carrying value during the period. As of December 31, 2021, the fair value of the investment in bitcoin was $371.0 million based on observable market prices which is $222.1 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):
December 31,
2021		December 31,
2020
Statutory liabilities (i)$133,020 $75,370 
Other (ii)89,826 9,921 
Total$222,846 $85,291 

(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.

(ii) Other non-current liabilities includes deferred purchase consideration associated with the acquisition of TIDAL.
v3.22.0.1
INDEBTEDNESS (Tables)
 12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
Net Carrying Amount of Convertible Notes
The net carrying amount of the Notes were as follows (in thousands):
Principal outstandingUnamortized debt issuance costsNet carrying value
December 31, 2021
2031 Senior Notes$1,000,000 $(13,226)$986,774 
2026 Senior Notes1,000,000 (12,374)987,626 
2027 Convertible Notes575,000 (7,792)567,208 
2026 Convertible Notes575,000 (7,379)567,621 
2025 Convertible Notes1,000,000 (9,639)990,361 
2023 Convertible Notes460,630 (1,012)459,618 
2022 Convertible Notes455 — 455 
Total$4,611,085 $(51,422)$4,559,663 

As discussed above, upon the adoption of ASU No. 2020-06, the Company reversed the separation of the debt and equity components of the Convertible Notes, and accounted for the Convertible Notes wholly as debt. Additionally, the issuance costs of the Notes were accounted for as debt issuance costs in its entirety. Refer to Note 1, Description of Business and Summary of Significant Accounting Policies for further details on the impact of adoption.

Principal outstandingUnamortized debt discountUnamortized debt issuance costsNet carrying value
December 31, 2020
2027 Convertible Notes$575,000 $(109,134)$(7,370)$458,496 
2026 Convertible Notes575,000 (85,085)(7,711)482,204 
2025 Convertible Notes1,000,000 (130,335)(11,333)858,332 
2023 Convertible Notes862,500 (79,980)(2,474)780,046 
2022 Convertible Notes8,545 (629)(70)7,846 
Total$3,021,045 $(405,163)$(28,958)$2,586,924 

     
The net carrying amount of the equity component of the Convertible Notes as of December 31, 2020 were as follows (in thousands):
Amount allocated to conversion optionLess: allocated issuance costsEquity component, net
December 31, 2020
2027 Convertible Notes$111,000 $(1,793)$109,207 
2026 Convertible Notes87,000 (1,405)85,595 
2025 Convertible Notes154,600 (2,342)152,258 
2023 Convertible Notes155,250 (1,231)154,019 
2022 Convertible Notes1,674 (45)1,629 
Total$509,524 $(6,816)$502,708 
Interest Expense on Convertible Notes
The Company recognized interest expense on the Notes as follows (in thousands, except for percentages):
Year Ended December 31,
202120202019
Contractual interest expense$44,141 $6,078 $5,108 
Amortization of debt discount and issuance costs (i)9,823 67,979 39,139 
Total$53,964 $74,057 $44,247 

(i) Upon adoption of ASU No. 2020-06, the debt discount associated with the equity component on convertible debt outstanding was reversed which resulted in a decrease in the amount of non-cash interest expense to be recognized going forward.
v3.22.0.1
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Domestic and Foreign Components of Income (Loss) Before Income Taxes The domestic and foreign components of income (loss) before income taxes are as follows (in thousands):
Year Ended December 31,
202120202019
Domestic$417,356 $369,016 $456,335 
Foreign(259,894)(153,049)(78,122)
Income before income taxes$157,462 $215,967 $378,213 
Components of Provision for Income Taxes The components of the provision for income taxes are as follows (in thousands):
Year Ended December 31,
202120202019
Current:
Federal$201 $— $114 
State3,186 4,016 930 
Foreign5,684 6,862 3,099 
Total current provision for income taxes9,071 10,878 4,143 
Deferred:
Federal(1,463)(970)(777)
State(524)(231)(399)
Foreign(8,448)(6,815)(200)
Total deferred provision for income taxes(10,435)(8,016)(1,376)
Total provision (benefit) for income taxes$(1,364)$2,862 $2,767 
Reconciliation of Statutory Federal Income Tax Rate to Company's Effective Tax Rate The following is a reconciliation of the statutory federal income tax rate to the Company's effective tax rate:
Balance at December 31,
202120202019
Tax at federal statutory rate21.0 %21.0 %21.0 %
State taxes, net of federal benefit0.6 0.3 0.1 
Foreign rate differential10.4 4.0 1.4 
Other non-deductible expenses5.4 2.7 0.5 
Credits(83.9)(34.6)(13.9)
Other items1.6 2.2 (0.5)
Change in valuation allowance290.4 153.9 34.9 
Share-based compensation (275.0)(155.4)(45.8)
Change in uncertain tax positions5.0 2.3 0.5 
Sale of Caviar business line— — 1.2 
Non-deductible executive compensation5.9 3.6 0.6 
Non-deductible acquisition-related costs5.9 1.3 0.7 
Intercompany transactions3.8 — — 
Cancellation of debt income8.0 — — 
Total(0.9)%1.3 %0.7 %
Tax Effects of Temporary Differences and Related Deferred Tax Assets and Liabilities The tax effects of temporary differences and related deferred tax assets and liabilities are as follows (in thousands):
Balance at December 31,
20212020
Deferred tax assets:
Capitalized costs$12,409 $17,994 
Accrued expenses62,707 47,653 
Net operating loss carryforwards1,276,561 962,069 
Tax credit carryforwards378,682 254,789 
Share-based compensation50,431 40,784 
Deferred interest34,475 13,800 
Other7,740 — 
Operating lease liability111,099 107,542 
Cryptocurrency investment17,600 — 
Deferred consideration11,266 — 
Convertible notes70,316 277 
Total deferred tax assets2,033,286 1,444,908 
Valuation allowance(1,887,111)(1,238,010)
Total deferred tax assets, net of valuation allowance146,175 206,898 
Deferred tax liabilities:
Property, equipment and intangible assets(31,775)(12,784)
Indefinite-lived intangibles(867)(352)
Other— (1,392)
Unrealized gain on investments(4,712)(73,425)
Operating lease right-of-use asset(108,747)(111,167)
Total deferred tax liabilities(146,101)(199,120)
Net deferred tax assets (liabilities)$74 $7,778 
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefit
A reconciliation of the beginning and ending amount of unrecognized tax benefit is presented below (in thousands):
Year Ended December 31,
202120202019
Balance at the beginning of the year$295,182 $217,574 $198,540 
Gross increases and decreases related to prior period tax positions6,552 (2,615)(11,571)
Gross increases and decreases related to current period tax positions124,238 77,235 30,676 
Reductions related to lapse of statute of limitations— (49)(149)
Gross increases related to acquisitions22,420 3,037 78 
Balance at the end of the year$448,392 $295,182 $217,574 
v3.22.0.1
STOCKHOLDER'S EQUITY (Tables)
 12 Months Ended
Dec. 31, 2021
Equity [Abstract]  
Summary of Stock Option Activity
A summary of stock option activity for the year ended December 31, 2021 is as follows (in thousands, except share and per share data):
Number of Stock Options OutstandingWeighted
Average
Exercise
Price		Weighted
Average
Remaining
Contractual
Term
(in years)		Aggregate
Intrinsic
Value
Balance at December 31, 202013,630,882 $17.84 3.84$2,723,394 
Granted198,771 255.22 
Exercised(4,900,413)12.33 
Forfeited(13,140)67.50 
Balance at December 31, 20218,916,100 $26.09 3.89$1,226,105 
Options exercisable as of December 31, 20217,769,686 $16.58 3.30$1,129,046 
Restricted Stock Awards and Restricted Stock Units Activity Activity related to RSAs and RSUs during the year ended December 31, 2021 is set forth below:
Number of
shares		Weighted
Average Grant
Date Fair Value
Unvested as of December 31, 202015,622,645 $71.71 
Granted5,313,636 247.56 
Vested(6,708,326)74.97 
Forfeited(1,006,002)109.48 
Unvested as of December 31, 202113,221,953 $137.86 
Fair Value Assumptions for Options
The fair value of stock options granted was estimated using the following weighted-average assumptions:
    
Year Ended December 31,
202120202019
Dividend yield— %— %— %
Risk-free interest rate1.08 %0.41 %2.37 %
Expected volatility54.91 %48.29 %40.48 %
Expected term (years)6.026.026.02
Summary of the Effect of Share-Based Compensation on the Consolidated Statements of Operations The following table summarizes the effects of share-based compensation on the Company's consolidated statements of operations (in thousands):
Year Ended December 31,
202120202019
Cost of revenue $410 $368 $155 
Product development446,596 289,553 210,840 
Sales and marketing57,070 36,627 26,720 
General and administrative103,966 70,952 60,148 
Total$608,042 $397,500 $297,863 
v3.22.0.1
NET INCOME PER SHARE (Tables)
 12 Months Ended
Dec. 31, 2021
Earnings Per Share [Abstract]  
Basic and Diluted Net Income Per Share
The following table presents the calculation of basic and diluted net income per share (in thousands, except per share data):
Year Ended December 31,
202120202019
Net income$158,826 $213,105 $375,446 
Less: Net loss attributable to noncontrolling interests(7,458)— — 
Net income attributable to common stockholders$166,284 $213,105 $375,446 
Basic shares:
Weighted-average common shares outstanding458,780 443,773 425,728 
Weighted-average unvested shares(348)(647)(729)
Weighted-average shares used to compute basic net income per share attributable to common stockholders458,432 443,126 424,999 
Diluted shares:
Stock options, restricted stock, and employee stock purchase plan17,849 23,628 30,645 
Convertible senior notes408 — — 
Common stock warrants25,090 15,413 10,432 
Weighted-average shares used to compute diluted net income per share attributable to common stockholders501,779482,167466,076
Net income per share attributable to common stockholders:
Basic$0.36 $0.48 $0.88 
Diluted$0.33 $0.44 $0.81 
Antidilutive Securities Excluded from Calculation of Diluted Net Income (Loss) Per Share
The following potential common shares were excluded from the calculation of diluted net income per share because their effect would have been anti-dilutive for the periods presented (in thousands):
Year Ended December 31,
202120202019
Stock options, restricted stock, and employee stock purchase plan7,680 12,509 14,760 
Common stock warrants17,271 22,140 19,820 
Convertible senior notes23,947 25,073 20,305 
Total anti-dilutive securities48,898 59,722 54,885 
v3.22.0.1
COMMITMENTS AND CONTINGENCIES (Tables)
 12 Months Ended
Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]  
Lease Expense Components and Other Information Related to Leases The components of lease expense for the year ended December 31, 2021 were as follows (in thousands):
Year Ended December 31,
20212020
Fixed operating lease costs$83,136 $70,254 
Variable operating lease costs15,568 15,625 
Short term lease costs1,953 6,375 
Sublease income(12,210)(8,594)
Finance lease costs
Amortization of finance right-of-use assets— 2,446 
Total lease costs$88,447 $86,106 
Other information related to leases was as follows:
December 31,
2021
Weighted Average Remaining Lease Term:
Operating leases8.3 years
Weighted Average Discount Rate:
Operating leases4 %
Cash flows related to leases were as follows (in thousands):
Year Ended December 31,
20212020
Cash flows from operating activities:
Payments for operating lease liabilities$(77,201)$(46,901)
Cash flows from financing activities:
Principal payments on finance lease obligation$— $(2,446)
Supplemental Cash Flow Data:
Right-of-use assets obtained in exchange for operating lease obligations$63,290 $342,662 
Future Minimum Lease Payments under Non-Cancelable Operating Leases Future minimum lease payments under non-cancelable operating leases (with initial lease terms in excess of one year) as of December 31, 2021 are as follows (in thousands):
Operating
Year:
2022$78,304 
202377,904 
202459,612 
202553,839 
202646,015 
Thereafter224,498 
Total$540,172 
Less: amount representing interest76,407 
Less: leases executed but not yet commenced— 
Less: lease incentives and transfer to held for sale4,721 
Total$459,044 
v3.22.0.1
SEGMENT AND GEOGRAPHICAL INFORMATION (Tables)
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Segment Reporting Information, by Segment
Information on the reportable segments revenue and segment gross profit are as follows (in thousands):
Year Ended December 31, 2021
Cash AppSquareCorporate and Other (i)Total
Revenue
Transaction-based revenue$409,844 $4,383,302 $— $4,793,146 
Subscription and services-based revenue1,893,008 664,367 152,356 2,709,731 
Hardware revenue— 145,679 — 145,679 
Bitcoin revenue10,012,647 — — 10,012,647 
Segment revenue12,315,499 5,193,348 152,356 17,661,203 
Segment gross profit$2,070,847 $2,316,671 $32,305 $4,419,823 

Year Ended December 31, 2020
Cash AppSquareCorporate and Other (i)Total
Revenue
Transaction-based revenue$233,747 $3,061,231 $— $3,294,978 
Subscription and services-based revenue1,163,096 376,307 — 1,539,403 
Hardware revenue— 91,654 — 91,654 
Bitcoin revenue4,571,543 — — 4,571,543 
Segment revenue5,968,386 3,529,192 — 9,497,578 
Segment gross profit$1,225,578 $1,507,831 $— $2,733,409 

Year Ended December 31, 2019
Cash AppSquareCorporate and Other (i)Total
Revenue
Transaction-based revenue$72,865 $3,008,209 $— $3,081,074 
Subscription and services-based revenue516,269 369,274 — 885,543 
Hardware revenue— 84,505 — 84,505 
Bitcoin revenue516,465 — — 516,465 
Segment revenue1,105,599 3,461,988 — 4,567,587 
Segment gross profit$457,668 $1,390,427 $— $1,848,095 
(i) Corporate and other represents results related to products and services that are not assigned to a specific reportable segment. Comparable prior period amounts have not been disclosed as they were not material.
Reconciliation of Revenue from Segments to Consolidated A reconciliation of total segment revenues, as indicated above, to the Company's consolidated revenues is as follows (in thousands):
Year Ended December 31,
202120202019
Total segment revenue$17,661,203 $9,497,578 $4,567,587 
Caviar revenue— — 145,913 
Total net revenue$17,661,203 $9,497,578 $4,713,500 
Reconciliation of Operating Profit (Loss) from Segments to Consolidated A reconciliation of total segment gross profit to the Company's income before applicable income taxes is as follows (in thousands):
Year Ended December 31,
202120202019
Total segment gross profit$4,419,823 $2,733,409 $1,848,095 
Add: Caviar gross profit— — 41,590 
Total reported operating gross profit4,419,823 2,733,409 1,889,685 
Less: Product development1,399,079 885,681 674,165 
Less: Sales and marketing1,617,189 1,109,670 625,126 
Less: General and administrative983,326 579,203 436,878 
Less: Transaction and loan losses187,991 177,670 126,959 
Less: Bitcoin impairment losses71,126 — — 
Less: Gain on sale of asset group— — (373,445)
Less: Interest expense, net33,124 56,943 21,516 
Less: Other expense (income), net(29,474)(291,725)273 
Income before applicable income taxes$157,462 $215,967 $378,213 
Revenue by Geographic Area
Revenue by geography is based on the addresses of the sellers or customers. The following table sets forth revenue by geographic area (in thousands):
Year Ended December 31,
202120202019
Revenue
United States$17,077,532 $9,186,440 $4,472,473 
International583,671 311,138 241,027 
Total net revenue$17,661,203 $9,497,578 $4,713,500 
Long-Lived Assets by Geographic Area The following table sets forth long-lived assets by geographic area (in thousands):
December 31,
20212020
Long-lived assets
United States$1,426,103 $1,086,379 
International81,768 58,342 
Total long-lived assets$1,507,871 $1,144,721 
v3.22.0.1
SUPPLEMENTAL CASH FLOW INFORMATION (Tables)
 12 Months Ended
Dec. 31, 2021
Supplemental Cash Flow Elements [Abstract]  
Cash Flow, Supplemental Disclosures
The supplemental disclosures of cash flow information consist of the following (in thousands):
Year Ended December 31,
202120202019
Supplemental Cash Flow Data:
Cash paid for interest$40,446 $3,857 $5,677 
Cash paid for income taxes10,041 6,001 2,744 
Supplemental disclosures of non-cash investing and financing activities:
Right-of-use assets obtained in exchange for operating lease obligations63,290 342,662 40,555 
Purchases of property and equipment in accounts payable and accrued expenses15,071 (3,975)(419)
Unpaid business combination purchase price50,079 8,974 8,411 
Non-cash proceeds from sale of asset group— — 100,000 
Fair value of common stock issued related to business combination(28,735)(35,318)— 
Recovery of common stock in connection with indemnification settlement agreement— — 789 
Fair value of common stock issued to settle the conversion of senior notes(1,258,562)(1,398,829)— 
Fair value of shares received to settle senior note hedges1,800,933 369,015 — 
Bitcoin lent to third party borrowers6,084 — — 
v3.22.0.1
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details)
 6 Months Ended 12 Months Ended
Jan. 01, 2021
USD ($)
Jun. 30, 2020
USD ($)
Dec. 31, 2021
USD ($)
segment
customer
third_party_processor
Dec. 31, 2020
USD ($)
third_party_processor
customer
Dec. 31, 2019
USD ($)
customer
Concentration Risk [Line Items]          
Advertising costs     $ 435,800,000 $ 224,700,000 $ 142,700,000
Selling and marketing expenses not directly related to a revenue generating transaction     778,300,000 635,300,000 279,700,000
Interest income     25,000,000 18,300,000 23,400,000
Interest expense     58,100,000 75,200,000 44,900,000
Short-term restricted cash     18,778,000 30,279,000 38,873,000
Long-term restricted cash     71,702,000 13,526,000 12,715,000
Reclassification from loans held for sale to loans held for investment     224,800,000    
Capitalized internally developed software during the period     39,200,000 42,000,000  
Amortization expense related to capitalized internally developed software     33,400,000 19,800,000 18,900,000
Asset retirement obligation     3,800,000    
Asset retirement obligation, associated asset net of depreciation     $ 282,140,000 233,520,000  
Measurement period for business combinations     1 year    
Intangible assets impairment     $ 0 0 0
Number of reportable segments | segment     2    
Goodwill, impairment charges   $ 0 $ 0 0 $ 0
Settlement period for customers payable     1 day    
Impact of accounting standards update adoption     $ 3,272,855,000 $ 2,681,569,000  
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2020-06 | Convertible Debt          
Concentration Risk [Line Items]          
Debt instrument increase $ 399,700,000        
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2020-06 | Accumulated deficit          
Concentration Risk [Line Items]          
Impact of accounting standards update adoption 103,000,000        
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2020-06 | Additional paid-in capital          
Concentration Risk [Line Items]          
Impact of accounting standards update adoption $ (502,700,000)        
Leasehold Improvements Under Asset Retirement Obligation          
Concentration Risk [Line Items]          
Asset retirement obligation, associated asset net of depreciation     $ 700,000    
Customer Concentration Risk | Net Revenue          
Concentration Risk [Line Items]          
Number of customers | customer     0 0 0
Credit Concentration Risk | Settlements Receivable          
Concentration Risk [Line Items]          
Number of third party processors | third_party_processor     2 2  
Third Party Processor One | Credit Concentration Risk | Settlements Receivable          
Concentration Risk [Line Items]          
Concentration risk (less than)     52.00% 59.00%  
Third Party Processor Two | Credit Concentration Risk | Settlements Receivable          
Concentration Risk [Line Items]          
Concentration risk (less than)     30.00% 27.00%  
Minimum          
Concentration Risk [Line Items]          
Loans held for sale selling period     1 day    
Settlements receivable period     1 day    
Maximum          
Concentration Risk [Line Items]          
Loans held for sale selling period     2 days    
Settlements receivable period     2 days    
Subscription and services-based revenue          
Concentration Risk [Line Items]          
Description of timing     The Company considers that it satisfies its performance obligations over time and as such recognizes revenue ratably over the term of the relevant arrangements, which vary from one month to twenty four months for website hosting, and one year to ten years for domain name registration.    
Contract with customer, term     1 month    
Hardware revenue          
Concentration Risk [Line Items]          
Description of timing     The Company offers hardware installment sales to customers with terms ranging from three to twenty four months.    
v3.22.0.1
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Estimated Useful Lives of Property and Equipment (Details)
 12 Months Ended
Dec. 31, 2021
Capitalized software  
Property, Plant and Equipment [Line Items]  
Useful Life 18 months
Computer and data center equipment  
Property, Plant and Equipment [Line Items]  
Useful Life 3 years
Furniture and fixtures  
Property, Plant and Equipment [Line Items]  
Useful Life 7 years
Maximum | Leasehold improvements  
Property, Plant and Equipment [Line Items]  
Useful Life 10 years
v3.22.0.1
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Prior Period Adjustments (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Error Corrections and Prior Period Adjustments Restatement [Line Items]      
Operating activities $ 847,830 $ 173,110 $ 327,630
Investing activities (1,310,879) (606,636) 95,193
Financing activities 2,652,034 3,676,735 243,401
Effect of foreign exchange rate on cash and cash equivalents (7,066) 12,995 3,841
Net increase in cash, cash equivalents, restricted cash and customer funds 2,181,919 3,256,204 670,065
Cash, cash equivalents, restricted cash and customer funds, beginning of the year 4,793,171 1,536,967 866,902
Cash, cash equivalents, restricted cash and customer funds, end of the year 6,975,090 4,793,171 1,536,967
As Previously Reported      
Error Corrections and Prior Period Adjustments Restatement [Line Items]      
Operating activities   381,603 465,699
Investing activities   (606,636) 95,193
Financing activities   2,315,195 (98,874)
Effect of foreign exchange rate on cash and cash equivalents   12,995 3,841
Net increase in cash, cash equivalents, restricted cash and customer funds   2,103,157 465,859
Cash, cash equivalents, restricted cash and customer funds, beginning of the year 3,201,863 1,098,706 632,847
Cash, cash equivalents, restricted cash and customer funds, end of the year   3,201,863 1,098,706
Adjustments      
Error Corrections and Prior Period Adjustments Restatement [Line Items]      
Operating activities   (208,493) (138,069)
Investing activities   0 0
Financing activities   1,361,540 342,275
Effect of foreign exchange rate on cash and cash equivalents   0 0
Net increase in cash, cash equivalents, restricted cash and customer funds   1,153,047 204,206
Cash, cash equivalents, restricted cash and customer funds, beginning of the year $ 1,591,308 438,261 234,055
Cash, cash equivalents, restricted cash and customer funds, end of the year   $ 1,591,308 $ 438,261
v3.22.0.1
REVENUE - Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Disaggregation of Revenue [Line Items]      
Revenue $ 17,661,203 $ 9,497,578 $ 4,713,500
Transaction-based revenue      
Disaggregation of Revenue [Line Items]      
Revenue from contracts with customers 4,793,146 3,294,978 3,081,074
Revenue 4,793,146 3,294,978 3,081,074
Subscription and services-based revenue      
Disaggregation of Revenue [Line Items]      
Revenue from contracts with customers 2,445,811 1,447,188 883,922
Revenue from other sources 263,920 92,215 147,534
Revenue 2,709,731 1,539,403 1,031,456
Hardware revenue      
Disaggregation of Revenue [Line Items]      
Revenue from contracts with customers 145,679 91,654 84,505
Revenue 145,679 91,654 84,505
Bitcoin revenue      
Disaggregation of Revenue [Line Items]      
Revenue from contracts with customers 10,012,647 4,571,543 516,465
Revenue $ 10,012,647 $ 4,571,543 $ 516,465
v3.22.0.1
INVESTMENTS IN DEBT SECURITIES - Short-Term and Long-Term Investments (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost $ 2,405,856  
Fair Value 2,395,713  
Short-term debt securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 869,525 $ 692,901
Gross Unrealized Gains 408 2,478
Gross Unrealized Losses (650) (267)
Fair Value 869,283 695,112
Short-term debt securities | U.S. agency securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 73,986 153,386
Gross Unrealized Gains 150 782
Gross Unrealized Losses (8) (164)
Fair Value 74,128 154,004
Short-term debt securities | Corporate bonds    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 293,460 76,957
Gross Unrealized Gains 128 256
Gross Unrealized Losses (269) (14)
Fair Value 293,319 77,199
Short-term debt securities | Commercial paper    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 36,088 4,999
Gross Unrealized Gains 0 0
Gross Unrealized Losses 0 0
Fair Value 36,088 4,999
Short-term debt securities | Municipal securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 5,543 10,377
Gross Unrealized Gains 5 57
Gross Unrealized Losses 0 (3)
Fair Value 5,548 10,431
Short-term debt securities | Certificates of deposit    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 9,200  
Gross Unrealized Gains 0  
Gross Unrealized Losses 0  
Fair Value 9,200  
Short-term debt securities | U.S. government securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 430,992 404,194
Gross Unrealized Gains 106 1,244
Gross Unrealized Losses (255) (4)
Fair Value 430,843 405,434
Short-term debt securities | Foreign government securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 20,256 42,988
Gross Unrealized Gains 19 139
Gross Unrealized Losses (118) (82)
Fair Value 20,157 43,045
Long-term debt securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 1,536,331 461,455
Gross Unrealized Gains 111 2,552
Gross Unrealized Losses (10,012) (57)
Fair Value 1,526,430 463,950
Long-term debt securities | U.S. agency securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 154,454 168,762
Gross Unrealized Gains 26 519
Gross Unrealized Losses (1,160) (3)
Fair Value 153,320 169,278
Long-term debt securities | Corporate bonds    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 667,699 174,655
Gross Unrealized Gains 80 1,401
Gross Unrealized Losses (4,572) (42)
Fair Value 663,207 176,014
Long-term debt securities | Municipal securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 22,541 1,045
Gross Unrealized Gains 2 15
Gross Unrealized Losses (126) 0
Fair Value 22,417 1,060
Long-term debt securities | U.S. government securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 678,553 91,642
Gross Unrealized Gains 3 433
Gross Unrealized Losses (4,080) (2)
Fair Value 674,476 92,073
Long-term debt securities | Foreign government securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 13,084 25,351
Gross Unrealized Gains 0 184
Gross Unrealized Losses (74) (10)
Fair Value $ 13,010 $ 25,525
v3.22.0.1
INVESTMENTS IN DEBT SECURITIES - Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Short-term debt securities    
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]    
Less than 12 Months, Fair Value $ 628,655 $ 126,843
Less than 12 Months, Gross Unrealized Losses (650) (265)
Greater than 12 months, Fair Value 311 2,505
Greater than 12 months, Gross Unrealized Losses 0 (2)
Total, Fair Value 628,966 129,348
Total, Gross Unrealized Losses (650) (267)
Long-term debt securities    
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]    
Less than 12 Months, Fair Value 1,450,038 49,182
Less than 12 Months, Gross Unrealized Losses (10,012) (57)
Greater than 12 months, Fair Value 0 0
Greater than 12 months, Gross Unrealized Losses 0 0
Total, Fair Value 1,450,038 49,182
Total, Gross Unrealized Losses (10,012) (57)
U.S. agency securities | Short-term debt securities    
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]    
Less than 12 Months, Fair Value 26,749 41,711
Less than 12 Months, Gross Unrealized Losses (8) (162)
Greater than 12 months, Fair Value 0 2,505
Greater than 12 months, Gross Unrealized Losses 0 (2)
Total, Fair Value 26,749 44,216
Total, Gross Unrealized Losses (8) (164)
U.S. agency securities | Long-term debt securities    
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]    
Less than 12 Months, Fair Value 151,472 1,406
Less than 12 Months, Gross Unrealized Losses (1,160) (3)
Greater than 12 months, Fair Value 0 0
Greater than 12 months, Gross Unrealized Losses 0 0
Total, Fair Value 151,472 1,406
Total, Gross Unrealized Losses (1,160) (3)
Corporate bonds | Short-term debt securities    
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]    
Less than 12 Months, Fair Value 241,792 15,255
Less than 12 Months, Gross Unrealized Losses (269) (14)
Greater than 12 months, Fair Value 311 0
Greater than 12 months, Gross Unrealized Losses 0 0
Total, Fair Value 242,103 15,255
Total, Gross Unrealized Losses (269) (14)
Corporate bonds | Long-term debt securities    
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]    
Less than 12 Months, Fair Value 627,467 28,189
Less than 12 Months, Gross Unrealized Losses (4,572) (42)
Greater than 12 months, Fair Value 0 0
Greater than 12 months, Gross Unrealized Losses 0 0
Total, Fair Value 627,467 28,189
Total, Gross Unrealized Losses (4,572) (42)
Municipal securities | Short-term debt securities    
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]    
Less than 12 Months, Fair Value   2,566
Less than 12 Months, Gross Unrealized Losses   (3)
Greater than 12 months, Fair Value   0
Greater than 12 months, Gross Unrealized Losses   0
Total, Fair Value   2,566
Total, Gross Unrealized Losses   (3)
Municipal securities | Long-term debt securities    
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]    
Less than 12 Months, Fair Value 18,616  
Less than 12 Months, Gross Unrealized Losses (126)  
Greater than 12 months, Fair Value 0  
Greater than 12 months, Gross Unrealized Losses 0  
Total, Fair Value 18,616  
Total, Gross Unrealized Losses (126)  
U.S. government securities | Short-term debt securities    
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]    
Less than 12 Months, Fair Value 347,380 45,970
Less than 12 Months, Gross Unrealized Losses (255) (4)
Greater than 12 months, Fair Value 0 0
Greater than 12 months, Gross Unrealized Losses 0 0
Total, Fair Value 347,380 45,970
Total, Gross Unrealized Losses (255) (4)
U.S. government securities | Long-term debt securities    
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]    
Less than 12 Months, Fair Value 639,473 8,658
Less than 12 Months, Gross Unrealized Losses (4,080) (2)
Greater than 12 months, Fair Value 0 0
Greater than 12 months, Gross Unrealized Losses 0 0
Total, Fair Value 639,473 8,658
Total, Gross Unrealized Losses (4,080) (2)
Foreign government securities | Short-term debt securities    
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]    
Less than 12 Months, Fair Value 12,734 21,341
Less than 12 Months, Gross Unrealized Losses (118) (82)
Greater than 12 months, Fair Value 0 0
Greater than 12 months, Gross Unrealized Losses 0 0
Total, Fair Value 12,734 21,341
Total, Gross Unrealized Losses (118) (82)
Foreign government securities | Long-term debt securities    
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]    
Less than 12 Months, Fair Value 13,010 10,929
Less than 12 Months, Gross Unrealized Losses (74) (10)
Greater than 12 months, Fair Value 0 0
Greater than 12 months, Gross Unrealized Losses 0 0
Total, Fair Value 13,010 10,929
Total, Gross Unrealized Losses $ (74) $ (10)
v3.22.0.1
INVESTMENTS IN DEBT SECURITIES - Contractual Maturities of Short-Term and Long-Term Investments (Details)
$ in Thousands
Dec. 31, 2021
USD ($)
Amortized Cost  
Due in one year or less $ 869,525
Due in one to five years 1,536,331
Amortized Cost 2,405,856
Fair Value  
Due in one year or less 869,283
Due in one to five years 1,526,430
Fair Value $ 2,395,713
v3.22.0.1
CUSTOMER FUNDS - Assets Underlying Customer Funds (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]    
Customer funds $ 2,830,995 $ 2,037,832
Customer Funds In Transit    
Debt Securities, Available-for-sale [Line Items]    
Customer funds 0 262,562
U.S. agency securities    
Debt Securities, Available-for-sale [Line Items]    
Customer funds 29,994 113,178
U.S. government securities    
Debt Securities, Available-for-sale [Line Items]    
Customer funds 360,060 333,346
Cash    
Debt Securities, Available-for-sale [Line Items]    
Customer funds 242,243 145,577
Cash Equivalents | Money market funds    
Debt Securities, Available-for-sale [Line Items]    
Customer funds 2,126,579 777,193
Cash Equivalents | Reverse repurchase agreement    
Debt Securities, Available-for-sale [Line Items]    
Customer funds 72,119 246,880
Cash Equivalents | U.S. agency securities    
Debt Securities, Available-for-sale [Line Items]    
Customer funds 0 47,300
Cash Equivalents | U.S. government securities    
Debt Securities, Available-for-sale [Line Items]    
Customer funds $ 0 $ 111,796
v3.22.0.1
CUSTOMER FUNDS - Investments within Customer Funds (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost $ 2,405,856  
Fair Value 2,395,713  
Customer funds    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 390,253 $ 446,479
Gross Unrealized Gains 0 50
Gross Unrealized Losses (199) (5)
Fair Value 390,054 446,524
Customer funds | U.S. agency securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 30,002 113,156
Gross Unrealized Gains 0 22
Gross Unrealized Losses (8) 0
Fair Value 29,994 113,178
Customer funds | U.S. government securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 360,251 333,323
Gross Unrealized Gains 0 28
Gross Unrealized Losses (191) (5)
Fair Value $ 360,060 $ 333,346
v3.22.0.1
CUSTOMER FUNDS - Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value (Details) - Customer funds - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]    
Less than 12 Months, Fair Value $ 390,054 $ 73,609
Less than 12 Months, Gross Unrealized Losses (198) (5)
Greater than 12 months, Fair Value 0 0
Greater than 12 months, Gross Unrealized Losses 0 0
Total, Fair Value 390,054 73,609
Total, Gross Unrealized Losses (198) (5)
U.S. agency securities    
Debt Securities, Available-for-sale [Line Items]    
Less than 12 Months, Fair Value 29,994  
Less than 12 Months, Gross Unrealized Losses (7)  
Greater than 12 months, Fair Value 0  
Greater than 12 months, Gross Unrealized Losses 0  
Total, Fair Value 29,994  
Total, Gross Unrealized Losses (7)  
U.S. government securities    
Debt Securities, Available-for-sale [Line Items]    
Less than 12 Months, Fair Value 360,060 73,609
Less than 12 Months, Gross Unrealized Losses (191) (5)
Greater than 12 months, Fair Value 0 0
Greater than 12 months, Gross Unrealized Losses 0 0
Total, Fair Value 360,060 73,609
Total, Gross Unrealized Losses $ (191) $ (5)
v3.22.0.1
CUSTOMER FUNDS - Contractual Maturities of Short-Term and Long-Term Investments (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Amortized Cost    
Due in one year or less $ 869,525  
Due in one to five years 1,536,331  
Amortized Cost 2,405,856  
Fair Value    
Due in one year or less 869,283  
Due in one to five years 1,526,430  
Fair Value 2,395,713  
Customer funds    
Amortized Cost    
Due in one year or less 390,253  
Due in one to five years 0  
Amortized Cost 390,253 $ 446,479
Fair Value    
Due in one year or less 390,054  
Due in one to five years 0  
Fair Value $ 390,054 $ 446,524
v3.22.0.1
FAIR VALUE OF FINANCIAL INSTRUMENTS - Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Customer Funds $ 2,830,995 $ 2,037,832
Short-term debt securities 869,283 695,112
Long-term debt securities 1,526,430 463,950
Investment in marketable equity security 0 376,258
Fair Value, Measurements, Recurring | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investment in marketable equity security 0 376,258
Total 6,008,845 4,052,716
Fair Value, Measurements, Recurring | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investment in marketable equity security 0 0
Total 1,349,160 863,219
Fair Value, Measurements, Recurring | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investment in marketable equity security 0 0
Total 0 0
Money market funds | Fair Value, Measurements, Recurring | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash Equivalents 2,344,768 1,694,736
Customer Funds 2,126,579 777,193
Money market funds | Fair Value, Measurements, Recurring | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash Equivalents 0 0
Customer Funds 0 0
Money market funds | Fair Value, Measurements, Recurring | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash Equivalents 0 0
Customer Funds 0 0
Reverse repurchase agreement | Fair Value, Measurements, Recurring | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Customer Funds 72,119 246,880
Reverse repurchase agreement | Fair Value, Measurements, Recurring | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Customer Funds 0 0
Reverse repurchase agreement | Fair Value, Measurements, Recurring | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Customer Funds 0 0
U.S. agency securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Customer Funds 29,994 113,178
U.S. agency securities | Fair Value, Measurements, Recurring | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash Equivalents 0 0
Customer Funds 0 0
Short-term debt securities 0 0
Long-term debt securities 0 0
U.S. agency securities | Fair Value, Measurements, Recurring | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash Equivalents 22,999 41,186
Customer Funds 29,994 160,478
Short-term debt securities 74,128 154,004
Long-term debt securities 153,320 169,278
U.S. agency securities | Fair Value, Measurements, Recurring | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash Equivalents 0 0
Customer Funds 0 0
Short-term debt securities 0 0
Long-term debt securities 0 0
Certificates of deposit | Fair Value, Measurements, Recurring | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash Equivalents 0 0
Short-term debt securities 0 0
Certificates of deposit | Fair Value, Measurements, Recurring | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash Equivalents 4,983 0
Short-term debt securities 9,200 0
Certificates of deposit | Fair Value, Measurements, Recurring | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash Equivalents 0 0
Short-term debt securities 0 0
Corporate bonds | Fair Value, Measurements, Recurring | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash Equivalents 0 0
Short-term debt securities 0 0
Long-term debt securities 0 0
Corporate bonds | Fair Value, Measurements, Recurring | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash Equivalents 790 0
Short-term debt securities 293,319 77,199
Long-term debt securities 663,207 176,014
Corporate bonds | Fair Value, Measurements, Recurring | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash Equivalents 0 0
Short-term debt securities 0 0
Long-term debt securities 0 0
Commercial paper | Fair Value, Measurements, Recurring | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term debt securities 0 0
Commercial paper | Fair Value, Measurements, Recurring | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term debt securities 36,088 4,999
Commercial paper | Fair Value, Measurements, Recurring | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term debt securities 0 0
Municipal securities | Fair Value, Measurements, Recurring | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term debt securities 0 0
Long-term debt securities 0 0
Municipal securities | Fair Value, Measurements, Recurring | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term debt securities 5,548 10,431
Long-term debt securities 22,417 1,060
Municipal securities | Fair Value, Measurements, Recurring | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term debt securities 0 0
Long-term debt securities 0 0
U.S. government securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Customer Funds 360,060 333,346
U.S. government securities | Fair Value, Measurements, Recurring | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash Equivalents 0 15,000
Customer Funds 360,060 445,142
Short-term debt securities 430,843 405,434
Long-term debt securities 674,476 92,073
U.S. government securities | Fair Value, Measurements, Recurring | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash Equivalents 0 0
Customer Funds 0 0
Short-term debt securities 0
Long-term debt securities 0 0
U.S. government securities | Fair Value, Measurements, Recurring | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash Equivalents 0 0
Customer Funds 0 0
Short-term debt securities 0 0
Long-term debt securities 0 0
Foreign government securities | Fair Value, Measurements, Recurring | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term debt securities 0 0
Long-term debt securities 0 0
Foreign government securities | Fair Value, Measurements, Recurring | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term debt securities 20,157 43,045
Long-term debt securities 13,010 25,525
Foreign government securities | Fair Value, Measurements, Recurring | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term debt securities 0 0
Long-term debt securities $ 0 $ 0
v3.22.0.1
FAIR VALUE OF FINANCIAL INSTRUMENTS - Fair Value and Carrying Value of Convertible Senior Notes (Details) - Fair Value, Measurements, Recurring - Level 2 - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Carrying Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt instrument $ 4,559,663 $ 2,586,924
Fair Value (Level 2)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt instrument 5,661,947 5,693,241
2031 Senior Notes | Carrying Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt instrument 986,774 0
2031 Senior Notes | Fair Value (Level 2)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt instrument 1,018,113 0
2026 Senior Notes | Carrying Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt instrument 987,626 0
2026 Senior Notes | Fair Value (Level 2)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt instrument 994,579 0
2027 Convertible Notes | Carrying Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Convertible notes 567,208 458,496
2027 Convertible Notes | Fair Value (Level 2)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Convertible notes 614,286 644,000
2026 Convertible Notes | Carrying Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Convertible notes 567,621 482,204
2026 Convertible Notes | Fair Value (Level 2)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Convertible notes 595,548 638,250
2025 Convertible Notes | Carrying Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Convertible notes 990,361 858,332
2025 Convertible Notes | Fair Value (Level 2)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Convertible notes 1,477,302 1,912,440
2023 Convertible Notes | Carrying Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Convertible notes 459,618 780,046
2023 Convertible Notes | Fair Value (Level 2)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Convertible notes 958,927 2,417,820
2022 Convertible Notes | Carrying Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Convertible notes 455 7,846
2022 Convertible Notes | Fair Value (Level 2)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Convertible notes $ 3,192 $ 80,731
v3.22.0.1
FAIR VALUE OF FINANCIAL INSTRUMENTS - Fair Value and Carrying Value of Loans Held for Sale (Details) - Fair Value, Measurements, Recurring - Level 3 - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Carrying Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Loans held for sale $ 517,940 $ 462,665
Loans held for investment 91,447 0
Total 609,387 462,665
Fair Value (Level 3)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Loans held for sale 574,982 467,805
Loans held for investment 95,746 0
Total $ 670,728 $ 467,805
v3.22.0.1
FAIR VALUE OF FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended 24 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Loans held for sale $ 517,940 $ 462,665   $ 517,940
Loans held for sale forgiven 679,600     725,900
Revenue 17,661,203 9,497,578 $ 4,713,500  
Paycheck Protection Program, CARES Act Loans        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Loans held for sale 364,800     364,800
Loans issued 1,500,000     1,500,000
Loans issued and sold to investor 399,100     $ 399,100
Revenue 96,200      
Loans Receivable Held-For-Sale        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Loss included in earnings from excess amortized cost over fair value of loans charge $ 6,400 $ 26,000 $ 23,200  
v3.22.0.1
LOANS HELD FOR INVESTMENT (Details) - USD ($)
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Financing Receivable, Past Due [Line Items]    
Loans held for investment, net of allowance for loan losses $ 91,447,000 $ 0
Loans held for investment, allowance for loan losses, recovery $ 0  
Loans held for investment, threshold period past due 60 days  
Nonperforming Financial Instruments    
Financing Receivable, Past Due [Line Items]    
Loans held for investment, threshold period past due 90 days  
Unlikely to be Collected Financing Receivable    
Financing Receivable, Past Due [Line Items]    
Loans held for investment, threshold period past due 120 days  
Pass    
Financing Receivable, Past Due [Line Items]    
Amortized cost of Pass rated loans $ 95,100,000  
v3.22.0.1
PROPERTY AND EQUIPMENT, NET - Schedule of Property and Equipment, Net (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 541,452 $ 461,641
Less: Accumulated depreciation and amortization (259,312) (228,121)
Property and equipment, net 282,140 233,520
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 208,228 168,125
Computer equipment    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 174,004 139,174
Capitalized software    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 116,827 119,452
Office furniture and equipment    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 42,393 $ 34,890
v3.22.0.1
PROPERTY AND EQUIPMENT, NET - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Property, Plant and Equipment [Abstract]      
Depreciation and amortization expense on property and equipment $ 94.2 $ 65.0 $ 60.6
v3.22.0.1
ACQUISITIONS - Narrative (Details)
$ in Billions
 8 Months Ended 12 Months Ended
Jan. 31, 2022
USD ($)
shares
Apr. 30, 2021
USD ($)
shares
Dec. 31, 2021
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Jan. 31, 2022
AUD ($)
Afterpay Limited | Subsequent Event              
Business Acquisition [Line Items]              
Equity consideration (in shares) | shares 113,387,895            
Equity consideration $ 13,900,000,000            
Acquired debt from acquisition $ 1,100,000,000           $ 1.5
Redemption price, percentage 100.00%            
TIDAL              
Business Acquisition [Line Items]              
Equity consideration (in shares) | shares   41,138          
Equity consideration   $ 10,071,000          
Percent acquired of outstanding shares   86.80%          
Option period to acquire remaining noncontrolling interest   3 years          
Consideration paid and deferred   $ 223,100,000          
Goodwill amount expected to be tax deductible   70,700,000          
Intangible assets (excluding goodwill) amount expected to be tax deductible   126,700,000          
Deferred consideration   $ 46,475,000          
Deferred consideration, withheld period   4 years          
Cash withheld as security for indemnification obligations   $ 22,800,000          
Purchase price adjustment to goodwill     $ 13,100,000        
Deferred tax liabilities adjustment     13,100,000        
Purchase consideration has been withheld related to defined post-acquisition activities which will be expensed in future periods   32,200,000          
Consideration transferred   $ 233,209,000          
Other Acquisition              
Business Acquisition [Line Items]              
Goodwill amount expected to be tax deductible     0 $ 0 $ 0 $ 0  
Intangible assets (excluding goodwill) amount expected to be tax deductible     $ 0 0 0 0  
Consideration transferred       $ 20,500,000 $ 126,700,000 $ 25,200,000  
v3.22.0.1
ACQUISITIONS - Assets Acquired and Liabilities Assumed (Details) - USD ($)
$ in Thousands
Apr. 30, 2021
Dec. 31, 2021
Dec. 31, 2020
Jun. 30, 2020
Dec. 31, 2019
Recognized amounts of identifiable assets acquired and liabilities assumed:          
Goodwill   $ 519,276 $ 316,701 $ 295,760 $ 266,345
TIDAL          
Consideration:          
Cash $ 176,663        
Deferred consideration 46,475        
Stock (41,138 shares of Class A common stock) $ 10,071        
Equity consideration (in shares) 41,138        
Consideration $ 233,209        
Recognized amounts of identifiable assets acquired and liabilities assumed:          
Current assets (inclusive of cash acquired of $12,358) 29,621        
Cash acquired 12,358        
Other non-current assets 33,443        
Accrued expenses and other current liabilities (67,789)        
Other non-current liabilities (52,759)        
Total identifiable net assets acquired 83,516        
Noncontrolling interests (48,192)        
Goodwill 197,885        
Total 233,209        
TIDAL | Customer assets          
Recognized amounts of identifiable assets acquired and liabilities assumed:          
Intangible assets 69,000        
TIDAL | Acquired technology          
Recognized amounts of identifiable assets acquired and liabilities assumed:          
Intangible assets 29,000        
TIDAL | Intangible trade name          
Recognized amounts of identifiable assets acquired and liabilities assumed:          
Intangible assets 35,000        
TIDAL | Other          
Recognized amounts of identifiable assets acquired and liabilities assumed:          
Intangible assets $ 8,000        
v3.22.0.1
GOODWILL - Schedule of Change in Carrying Value of Goodwill (Details) - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Dec. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Goodwill [Roll Forward]      
Beginning balance $ 295,760 $ 316,701 $ 266,345
Acquisitions 20,079 203,079 49,571
Other adjustments 862 (504) 785
Ending balance 316,701 519,276 316,701
Corporate and Other      
Goodwill [Roll Forward]      
Beginning balance 0 0  
Acquisitions 0 197,885  
Other adjustments 0 0  
Ending balance 0 197,885 0
Cash App      
Goodwill [Roll Forward]      
Beginning balance 112,389 128,838  
Acquisitions 15,587 0  
Other adjustments 862 (504)  
Ending balance 128,838 128,334 128,838
Square      
Goodwill [Roll Forward]      
Beginning balance 183,371 187,863  
Acquisitions 4,492 5,194  
Other adjustments 0 0  
Ending balance $ 187,863 $ 193,057 $ 187,863
v3.22.0.1
GOODWILL - Narrative (Details)
 6 Months Ended 12 Months Ended
Jun. 30, 2020
USD ($)
Dec. 31, 2021
USD ($)
segment
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Goodwill [Line Items]        
Number of reportable segments | segment   2    
Number of operating segments | segment   2    
Goodwill $ 295,760,000 $ 519,276,000 $ 316,701,000 $ 266,345,000
Goodwill, impairment charges 0 0 0 $ 0
Square        
Goodwill [Line Items]        
Goodwill 183,371,000 193,057,000 187,863,000  
Cash App        
Goodwill [Line Items]        
Goodwill $ 112,389,000 $ 128,334,000 $ 128,838,000  
v3.22.0.1
ACQUIRED INTANGIBLE ASSETS - Schedule of Acquired Intangible Assets (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Acquired Finite-Lived Intangible Assets [Line Items]        
Cost $ 360,087 $ 202,326    
Accumulated Amortization (103,038) (64,714)    
Net $ 257,049 $ 137,612 $ 69,079 $ 77,102
Technology assets        
Acquired Finite-Lived Intangible Assets [Line Items]        
Weighted Average Estimated Useful Life 5 years 5 years    
Cost $ 164,977 $ 119,508    
Accumulated Amortization (65,619) (43,084)    
Net $ 99,358 $ 76,424    
Customer assets        
Acquired Finite-Lived Intangible Assets [Line Items]        
Weighted Average Estimated Useful Life 15 years 11 years    
Cost $ 128,316 $ 58,556    
Accumulated Amortization (19,244) (10,796)    
Net $ 109,072 $ 47,760    
Trade name        
Acquired Finite-Lived Intangible Assets [Line Items]        
Weighted Average Estimated Useful Life 9 years 6 years    
Cost $ 53,051 $ 18,529    
Accumulated Amortization (14,169) (8,031)    
Net $ 38,882 $ 10,498    
Other        
Acquired Finite-Lived Intangible Assets [Line Items]        
Weighted Average Estimated Useful Life 9 years 8 years    
Cost $ 13,743 $ 5,733    
Accumulated Amortization (4,006) (2,803)    
Net $ 9,737 $ 2,930    
v3.22.0.1
ACQUIRED INTANGIBLE ASSETS - Change in Carrying Value of Acquired Intangible Assets (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Finite-lived Intangible Assets [Roll Forward]      
Beginning balance $ 137,612 $ 69,079 $ 77,102
Acquisitions 159,100 85,960 14,559
Amortization expense (40,522) (19,239) (15,000)
Sale of asset group 0 0 (7,582)
Other adjustments 859 1,812 0
Ending balance $ 257,049 $ 137,612 $ 69,079
v3.22.0.1
ACQUIRED INTANGIBLE ASSETS - Future Amortization of Intangible Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]        
2022 $ 42,908      
2023 41,657      
2024 38,679      
2025 31,852      
2026 18,201      
Thereafter 83,752      
Net $ 257,049 $ 137,612 $ 69,079 $ 77,102
v3.22.0.1
OTHER CONSOLIDATED BALANCE SHEET COMPONENTS (CURRENT) - Other Current Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]      
Inventory, net $ 77,058 $ 61,129  
Restricted cash 18,778 30,279 $ 38,873
Processing costs receivable 228,914 148,606  
Prepaid expenses 63,341 34,279  
Accounts receivable, net 89,702 41,960  
Loans held for investment, net of allowance for loan losses 91,447 0  
Other 118,189 66,814  
Total $ 687,429 $ 383,067  
v3.22.0.1
OTHER CONSOLIDATED BALANCE SHEET COMPONENTS (CURRENT) - Accrued Expenses and Other Current Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Accrued expenses $ 254,900 $ 126,710
Accrued royalties 53,616 0
Accrued transaction losses 55,167 70,557
Accounts payable 82,173 47,089
Deferred revenue, current 48,462 44,908
Current portion of long-term debt 455 0
Other 144,536 71,586
Total $ 639,309 $ 360,850
v3.22.0.1
OTHER CONSOLIDATED BALANCE SHEET COMPONENTS (CURRENT) - Reserve for Transaction Losses (Details) - Transaction Losses - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Loss Contingency Accrual [Roll Forward]    
Accrued transaction losses, beginning of the year $ 70,557 $ 34,771
Provision for transaction losses 63,436 109,399
Charge-offs to accrued transaction losses (78,826) (73,613)
Accrued transaction losses, end of the year $ 55,167 $ 70,557
v3.22.0.1
OTHER CONSOLIDATED BALANCE SHEET COMPONENTS (CURRENT) - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Transaction Losses    
Loss Contingencies [Line Items]    
Provisions for transaction losses realized and written-off within the same period $ 338.6 $ 264.3
v3.22.0.1
OTHER CONSOLIDATED BALANCE SHEET COMPONENTS (NON-CURRENT) - Other Non-Current Assets (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2021
Dec. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Investment in non-marketable equity securities   $ 32,510 $ 81,919 $ 32,510  
Investment in marketable equity security   376,258 0 376,258  
Investment in bitcoin, net   50,000 149,000 50,000  
Restricted cash   13,526 71,702 13,526 $ 12,715
Other   26,956 67,914 26,956  
Total   499,250 370,535 499,250  
Investment in non-marketable equity securities, net loss from revaluation     12,400    
Investment in marketable security, gain on sale     44,400    
Bitcoin impairment losses     71,126 $ 0 $ 0
Bitcoin          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Indefinite-lived intangible asset acquired $ 170,000 $ 50,000      
Fair value of bitcoin investment     371,000    
Amount of fair value in excess of carrying value for bitcoin investment     $ 222,100    
v3.22.0.1
OTHER CONSOLIDATED BALANCE SHEET COMPONENTS (NON-CURRENT) - Other Non-Current Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Statutory liabilities $ 133,020 $ 75,370
Other 89,826 9,921
Total $ 222,846 $ 85,291
v3.22.0.1
INDEBTEDNESS - Facility Narrative (Details) - USD ($)
 1 Months Ended 12 Months Ended
May 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Jan. 29, 2021
Jan. 28, 2021
Nov. 09, 2020
May 28, 2020
Debt Instrument [Line Items]              
Paycheck protection program liquidity facility advances outstanding   $ 497,533,000 $ 464,094,000        
Line of Credit | Paycheck Protection Program Liquidity Facility              
Debt Instrument [Line Items]              
Maximum borrowing capacity       $ 1,000,000,000 $ 1,000,000,000   $ 500,000,000
Paycheck protection program liquidity facility advances outstanding   497,500,000          
Revolving Secured Credit Facility | Line of Credit | 2020 Credit Facility              
Debt Instrument [Line Items]              
Maximum borrowing capacity $ 500,000,000            
Debt covenant, minimum quarterly liquidity amount $ 250,000,000            
Unused commitment fee, percent 0.15%            
Amounts drawn to date   0          
Letters of credit outstanding   0          
Remaining borrowing capacity   500,000,000          
Unused commitment fees   $ 800,000 $ 700,000        
Revolving Secured Credit Facility | Line of Credit | Federal Funds Rate | 2020 Credit Facility              
Debt Instrument [Line Items]              
Basis spread on variable rate 0.50%            
Revolving Secured Credit Facility | Line of Credit | LIBOR | 2020 Credit Facility              
Debt Instrument [Line Items]              
Basis spread on variable rate 1.00%            
Revolving Secured Credit Facility | Line of Credit | LIBOR | Minimum | 2020 Credit Facility              
Debt Instrument [Line Items]              
Basis spread on variable rate 1.25%            
Additional basis spread on variable rate 0.25%            
Revolving Secured Credit Facility | Line of Credit | LIBOR | Maximum | 2020 Credit Facility              
Debt Instrument [Line Items]              
Basis spread on variable rate 1.75%            
Additional basis spread on variable rate 0.75%            
Revolving Secured Credit Facility | Convertible Debt | Credit Agreement, Second Amendment              
Debt Instrument [Line Items]              
Maximum borrowing capacity           $ 3,600,000,000  
v3.22.0.1
INDEBTEDNESS - Senior Unsecured Notes Narrative (Details) - Senior Notes
$ in Millions
May 20, 2021
USD ($)
Senior Unsecured Notes  
Debt Instrument [Line Items]  
Aggregate principal amount $ 2,000.0
Redemption price, percentage 100.00%
Redemption price, premium rate 1.00%
Debt repurchase, percentage 101.00%
Debt default, percentage of interest by trustee or holders (at least) 25.00%
Discounts and commissions payable $ 22.5
Third party offering costs $ 5.7
Senior Unsecured Notes | US Treasury (UST) Interest Rate  
Debt Instrument [Line Items]  
Redemption price, premium, basis spread on variable rate 0.50%
2026 Senior Notes  
Debt Instrument [Line Items]  
Aggregate principal amount $ 1,000.0
Interest rate 2.75%
Effective interest rate 3.06%
2031 Senior Notes  
Debt Instrument [Line Items]  
Aggregate principal amount $ 1,000.0
Interest rate 3.50%
Effective interest rate 3.69%
v3.22.0.1
INDEBTEDNESS - Convertible Notes Narrative (Details) - Convertible Debt
$ / shares in Units, shares in Millions
 12 Months Ended 15 Months Ended 43 Months Ended 51 Months Ended
Nov. 13, 2020
USD ($)
day
$ / shares
Mar. 05, 2020
USD ($)
day
$ / shares
May 25, 2018
USD ($)
day
$ / shares
Mar. 06, 2017
USD ($)
day
$ / shares
Dec. 31, 2021
USD ($)
shares
Dec. 31, 2021
USD ($)
Dec. 31, 2021
USD ($)
shares
Dec. 31, 2021
USD ($)
shares
Jan. 01, 2021
Dec. 31, 2020
USD ($)
Debt Instrument [Line Items]                    
Conversion price of convertible debt (in USD per share) | $ / shares   $ 121.01 $ 77.85 $ 22.95            
Carrying amount of equity component         $ 502,708,000 $ 502,708,000 $ 502,708,000 $ 502,708,000    
Issuance costs attributable to the liability component                   $ 28,958,000
2026 and 2027 Notes                    
Debt Instrument [Line Items]                    
Aggregate principal amount $ 1,150,000,000                  
Conversion rate 0.003343                  
Conversion price of convertible debt (in USD per share) | $ / shares $ 299.13                  
Redemption price, percentage 100.00%                  
Carrying amount of equity component $ 198,000,000                  
Discounts and commissions payable 17,500,000                  
Third party offering costs 1,000,000                  
Issuance costs attributable to the liability component $ 15,400,000                  
2026 and 2027 Notes | Debt Instrument, Conversion Term One                    
Debt Instrument [Line Items]                    
Threshold trading days | day 20                  
Threshold consecutive trading days | day 30                  
Threshold percentage of stock price trigger 130.00%                  
2026 and 2027 Notes | Debt Instrument, Conversion Term Two                    
Debt Instrument [Line Items]                    
Threshold trading days | day 5                  
Threshold consecutive trading days | day 5                  
Threshold percentage of stock price trigger 98.00%                  
2026 Convertible Notes                    
Debt Instrument [Line Items]                    
Aggregate principal amount $ 575,000,000                  
Interest rate 0.00%                  
Conversion price of convertible debt (in USD per share) | $ / shares $ 299.13                  
Carrying amount of equity component         $ 85,595,000 $ 85,595,000 $ 85,595,000 $ 85,595,000    
Effective interest rate of the liability component 3.35%       3.35% 3.35% 3.35% 3.35%    
Issuance costs attributable to the liability component                   7,711,000
2026 Convertible Notes | Accounting Standards Update 2020-06                    
Debt Instrument [Line Items]                    
Effective interest rate of the liability component                 0.49%  
2027 Convertible Notes                    
Debt Instrument [Line Items]                    
Aggregate principal amount $ 575,000,000                  
Interest rate 0.25%                  
Conversion price of convertible debt (in USD per share) | $ / shares $ 299.13                  
Carrying amount of equity component         $ 109,207,000 $ 109,207,000 $ 109,207,000 $ 109,207,000    
Effective interest rate of the liability component 3.66%       3.66% 3.66% 3.66% 3.66%    
Issuance costs attributable to the liability component                   7,370,000
2027 Convertible Notes | Accounting Standards Update 2020-06                    
Debt Instrument [Line Items]                    
Effective interest rate of the liability component                 0.30%  
2025 Convertible Notes                    
Debt Instrument [Line Items]                    
Aggregate principal amount   $ 1,000,000,000                
Interest rate   0.125%                
Conversion rate   0.0082641                
Conversion price of convertible debt (in USD per share) | $ / shares   $ 121.01                
Redemption price, percentage   100.00%                
Carrying amount of equity component   $ 154,600,000     $ 152,258,000 $ 152,258,000 $ 152,258,000 $ 152,258,000    
Effective interest rate of the liability component   3.81%     3.81% 3.81% 3.81% 3.81%    
Discounts and commissions payable   $ 14,300,000                
Third party offering costs   900,000                
Issuance costs attributable to the liability component   $ 12,800,000               11,333,000
Amount of if-converted value in excess of outstanding principal amount         $ 334,700,000 $ 334,700,000 $ 334,700,000 $ 334,700,000    
2025 Convertible Notes | Accounting Standards Update 2020-06                    
Debt Instrument [Line Items]                    
Effective interest rate of the liability component                 0.43%  
2025 Convertible Notes | Debt Instrument, Conversion Term One                    
Debt Instrument [Line Items]                    
Threshold trading days | day   20                
Threshold consecutive trading days | day   30                
Threshold percentage of stock price trigger   130.00%                
2025 Convertible Notes | Debt Instrument, Conversion Term Two                    
Debt Instrument [Line Items]                    
Threshold trading days | day   5                
Threshold consecutive trading days | day   5                
Threshold percentage of stock price trigger   98.00%                
2023 Convertible Notes                    
Debt Instrument [Line Items]                    
Aggregate principal amount     $ 862,500,000              
Interest rate     0.50%              
Conversion rate     0.0128456              
Conversion price of convertible debt (in USD per share) | $ / shares     $ 77.85              
Carrying amount of equity component     $ 155,300,000   $ 154,019,000 $ 154,019,000 $ 154,019,000 $ 154,019,000    
Effective interest rate of the liability component     4.69%   4.69% 4.69% 4.69% 4.69%    
Discounts and commissions payable     $ 6,000,000              
Third party offering costs     800,000              
Issuance costs attributable to the liability component     $ 5,600,000             2,474,000
Converted principal amount           $ 401,900,000        
Shares issued in connection with conversion (in shares) | shares         5.2          
Amount of if-converted value in excess of outstanding principal amount         $ 495,000,000 495,000,000 $ 495,000,000 $ 495,000,000    
2023 Convertible Notes | Accounting Standards Update 2020-06                    
Debt Instrument [Line Items]                    
Effective interest rate of the liability component                 0.66%  
2023 Convertible Notes | Debt Instrument, Conversion Term One                    
Debt Instrument [Line Items]                    
Threshold trading days | day     20              
Threshold consecutive trading days | day     30              
Threshold percentage of stock price trigger     130.00%              
2023 Convertible Notes | Debt Instrument, Conversion Term Two                    
Debt Instrument [Line Items]                    
Threshold trading days | day     5              
Threshold consecutive trading days | day     5              
Threshold percentage of stock price trigger     98.00%              
2022 Convertible Notes                    
Debt Instrument [Line Items]                    
Aggregate principal amount       $ 440,000,000            
Interest rate       0.375%            
Conversion rate       0.0435749            
Conversion price of convertible debt (in USD per share) | $ / shares       $ 22.95            
Carrying amount of equity component       $ 86,200,000 $ 1,629,000 $ 1,629,000 $ 1,629,000 $ 1,629,000    
Effective interest rate of the liability component       5.34% 5.34% 5.34% 5.34% 5.34%    
Discounts and commissions payable       $ 11,000,000            
Third party offering costs       800,000            
Issuance costs attributable to the liability component       $ 9,400,000           $ 70,000
Converted principal amount         $ 8,100,000     $ 439,500,000    
Principal payment on conversion of senior notes               $ 219,400,000    
Shares issued in connection with conversion (in shares) | shares         0.4   16.5 16.5    
Amount of if-converted value in excess of outstanding principal amount         $ 2,700,000 $ 2,700,000 $ 2,700,000 $ 2,700,000    
2022 Convertible Notes | Accounting Standards Update 2020-06                    
Debt Instrument [Line Items]                    
Effective interest rate of the liability component                 0.93%  
2022 Convertible Notes | Debt Instrument, Conversion Term One                    
Debt Instrument [Line Items]                    
Threshold trading days | day       20            
Threshold consecutive trading days | day       30            
Threshold percentage of stock price trigger       130.00%            
2022 Convertible Notes | Debt Instrument, Conversion Term Two                    
Debt Instrument [Line Items]                    
Threshold trading days | day       5            
Threshold consecutive trading days | day       5            
Threshold percentage of stock price trigger       98.00%            
v3.22.0.1
INDEBTEDNESS - Net Carrying Amount of Convertible Notes (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Mar. 05, 2020
May 25, 2018
Mar. 06, 2017
Convertible Debt          
Debt Instrument [Line Items]          
Principal outstanding $ 4,611,085 $ 3,021,045      
Unamortized debt issuance costs (51,422)        
Unamortized debt discount   (405,163)      
Unamortized debt issuance costs   (28,958)      
Net carrying value 4,559,663 2,586,924      
2031 Senior Notes | Senior Notes          
Debt Instrument [Line Items]          
Principal outstanding 1,000,000        
Unamortized debt issuance costs (13,226)        
Net carrying value 986,774        
2026 Senior Notes | Senior Notes          
Debt Instrument [Line Items]          
Principal outstanding 1,000,000        
Unamortized debt issuance costs (12,374)        
Net carrying value 987,626        
2027 Convertible Notes | Convertible Debt          
Debt Instrument [Line Items]          
Principal outstanding 575,000 575,000      
Unamortized debt issuance costs (7,792)        
Unamortized debt discount   (109,134)      
Unamortized debt issuance costs   (7,370)      
Net carrying value 567,208 458,496      
2026 Convertible Notes | Convertible Debt          
Debt Instrument [Line Items]          
Principal outstanding 575,000 575,000      
Unamortized debt issuance costs (7,379)        
Unamortized debt discount   (85,085)      
Unamortized debt issuance costs   (7,711)      
Net carrying value 567,621 482,204      
2025 Convertible Notes | Convertible Debt          
Debt Instrument [Line Items]          
Principal outstanding 1,000,000 1,000,000      
Unamortized debt issuance costs (9,639)        
Unamortized debt discount   (130,335)      
Unamortized debt issuance costs   (11,333) $ (12,800)    
Net carrying value 990,361 858,332      
2023 Convertible Notes | Convertible Debt          
Debt Instrument [Line Items]          
Principal outstanding 460,630 862,500      
Unamortized debt issuance costs (1,012)        
Unamortized debt discount   (79,980)      
Unamortized debt issuance costs   (2,474)   $ (5,600)  
Net carrying value 459,618 780,046      
2022 Convertible Notes | Convertible Debt          
Debt Instrument [Line Items]          
Principal outstanding 455 8,545      
Unamortized debt issuance costs 0        
Unamortized debt discount   (629)      
Unamortized debt issuance costs   (70)     $ (9,400)
Net carrying value $ 455 $ 7,846      
v3.22.0.1
INDEBTEDNESS - Net Carrying Amount of Equity Component of Convertible Notes (Details) - Convertible Debt - USD ($)
$ in Thousands
Dec. 31, 2021
Mar. 05, 2020
May 25, 2018
Mar. 06, 2017
Debt Instrument [Line Items]        
Amount allocated to conversion option $ 509,524      
Less: allocated issuance costs (6,816)      
Equity component, net 502,708      
2027 Convertible Notes        
Debt Instrument [Line Items]        
Amount allocated to conversion option 111,000      
Less: allocated issuance costs (1,793)      
Equity component, net 109,207      
2026 Convertible Notes        
Debt Instrument [Line Items]        
Amount allocated to conversion option 87,000      
Less: allocated issuance costs (1,405)      
Equity component, net 85,595      
2025 Convertible Notes        
Debt Instrument [Line Items]        
Amount allocated to conversion option 154,600      
Less: allocated issuance costs (2,342)      
Equity component, net 152,258 $ 154,600    
2023 Convertible Notes        
Debt Instrument [Line Items]        
Amount allocated to conversion option 155,250      
Less: allocated issuance costs (1,231)      
Equity component, net 154,019   $ 155,300  
2022 Convertible Notes        
Debt Instrument [Line Items]        
Amount allocated to conversion option 1,674      
Less: allocated issuance costs (45)      
Equity component, net $ 1,629     $ 86,200
v3.22.0.1
INDEBTEDNESS - Interest Expense on Convertible Notes (Details) - Convertible Debt - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Debt Instrument [Line Items]      
Contractual interest expense $ 44,141 $ 6,078 $ 5,108
Amortization of debt discount and issuance costs 9,823 67,979 39,139
Total $ 53,964 $ 74,057 $ 44,247
v3.22.0.1
INDEBTEDNESS - Convertible Note Hedge and Warrant Transactions Narrative (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended 58 Months Ended
Nov. 13, 2020
Mar. 05, 2020
May 25, 2018
Mar. 06, 2017
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2021
Debt Instrument [Line Items]                
Proceeds from issuance of warrants         $ 0 $ 232,095 $ 0  
Convertible Debt                
Debt Instrument [Line Items]                
Conversion price of convertible debt (in USD per share)   $ 121.01 $ 77.85 $ 22.95        
Conversion price of convertible debt after effect of warrants and note hedge (in USD per share)   $ 161.34 $ 109.26 $ 31.18        
Convertible Debt | 2027 Convertible Notes                
Debt Instrument [Line Items]                
Conversion price of convertible debt (in USD per share) $ 299.13              
Conversion price of convertible debt after effect of warrants and note hedge (in USD per share) 414.18              
Convertible Debt | 2026 Convertible Notes                
Debt Instrument [Line Items]                
Conversion price of convertible debt (in USD per share) 299.13              
Conversion price of convertible debt after effect of warrants and note hedge (in USD per share) $ 368.16              
Common Stock Warrant, 2027 Notes                
Debt Instrument [Line Items]                
Outstanding warrants to purchase aggregate shares of capital stock (in shares) 1,920              
Exercise price of warrants (in USD per share) $ 414.18              
Proceeds from issuance of warrants $ 68,000              
Common Stock Warrant, 2026 Notes                
Debt Instrument [Line Items]                
Outstanding warrants to purchase aggregate shares of capital stock (in shares) 1,920              
Exercise price of warrants (in USD per share) $ 368.16              
Proceeds from issuance of warrants $ 64,600              
Common Stock Warrant, 2025 Notes                
Debt Instrument [Line Items]                
Outstanding warrants to purchase aggregate shares of capital stock (in shares)   8,260            
Exercise price of warrants (in USD per share)   $ 161.34            
Proceeds from issuance of warrants   $ 99,500            
Common Stock Warrant, 2023 Notes                
Debt Instrument [Line Items]                
Outstanding warrants to purchase aggregate shares of capital stock (in shares)     11,100          
Exercise price of warrants (in USD per share)     $ 109.26          
Proceeds from issuance of warrants     $ 112,100          
Shares received upon exercise of convertible notes (in shares)         2,000      
Common Stock Warrant, 2022 Notes                
Debt Instrument [Line Items]                
Outstanding warrants to purchase aggregate shares of capital stock (in shares)       19,200        
Exercise price of warrants (in USD per share)       $ 31.18        
Proceeds from issuance of warrants       $ 57,200        
Shares received upon exercise of convertible notes (in shares)         5,500     14,900
Options Held                
Debt Instrument [Line Items]                
Outstanding warrants to purchase aggregate shares of capital stock (in shares) 1,920 8,260 11,100 19,200        
Convertible note hedge, option to purchase common stock, price (in USD per share) $ 299.13 $ 121.01 $ 77.85 $ 22.95        
Cost of convertible note hedge   $ 149,200 $ 172,600 $ 92,100        
Options Held | 2027 Convertible Notes                
Debt Instrument [Line Items]                
Cost of convertible note hedge $ 104,300              
Options Held | 2026 Convertible Notes                
Debt Instrument [Line Items]                
Cost of convertible note hedge $ 84,600              
v3.22.0.1
INCOME TAXES - Domestic and Foreign Components of Income (Loss) Before Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Tax Disclosure [Abstract]      
Domestic $ 417,356 $ 369,016 $ 456,335
Foreign (259,894) (153,049) (78,122)
Income before income tax $ 157,462 $ 215,967 $ 378,213
v3.22.0.1
INCOME TAXES - Components of Provision for Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Current:      
Federal $ 201 $ 0 $ 114
State 3,186 4,016 930
Foreign 5,684 6,862 3,099
Total current provision for income taxes 9,071 10,878 4,143
Deferred:      
Federal (1,463) (970) (777)
State (524) (231) (399)
Foreign (8,448) (6,815) (200)
Total deferred provision for income taxes (10,435) (8,016) (1,376)
Total provision (benefit) for income taxes $ (1,364) $ 2,862 $ 2,767
v3.22.0.1
INCOME TAXES - Reconciliation of Statutory Federal Income Tax Rate to Company's Effective Tax Rate (Details)
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Tax Disclosure [Abstract]      
Tax at federal statutory rate 21.00% 21.00% 21.00%
State taxes, net of federal benefit 0.60% 0.30% 0.10%
Foreign rate differential 10.40% 4.00% 1.40%
Other non-deductible expenses 5.40% 2.70% 0.50%
Credits (83.90%) (34.60%) (13.90%)
Other items 1.60% 2.20% (0.50%)
Change in valuation allowance 290.40% 153.90% 34.90%
Share-based compensation (275.00%) (155.40%) (45.80%)
Change in uncertain tax positions 5.00% 2.30% 0.50%
Sale of Caviar business line 0.00% 0.00% 1.20%
Non-deductible executive compensation 5.90% 3.60% 0.60%
Non-deductible acquisition-related costs 5.90% 1.30% 0.70%
Intercompany transactions 3.80% 0.00% 0.00%
Cancellation of debt income 8.00% 0.00% 0.00%
Total (0.90%) 1.30% 0.70%
v3.22.0.1
INCOME TAXES - Tax Effects of Temporary Differences and Related Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Deferred tax assets:    
Capitalized costs $ 12,409 $ 17,994
Accrued expenses 62,707 47,653
Net operating loss carryforwards 1,276,561 962,069
Tax credit carryforwards 378,682 254,789
Share-based compensation 50,431 40,784
Deferred interest 34,475 13,800
Other 7,740 0
Operating lease liability 111,099 107,542
Cryptocurrency investment 17,600 0
Deferred consideration 11,266 0
Convertible notes 70,316 277
Total deferred tax assets 2,033,286 1,444,908
Valuation allowance (1,887,111) (1,238,010)
Total deferred tax assets, net of valuation allowance 146,175 206,898
Deferred tax liabilities:    
Property, equipment and intangible assets (31,775) (12,784)
Indefinite-lived intangibles (867) (352)
Other 0 (1,392)
Unrealized gain on investments (4,712) (73,425)
Operating lease right-of-use asset (108,747) (111,167)
Total deferred tax liabilities (146,101) (199,120)
Net deferred tax assets (liabilities) $ 74 $ 7,778
v3.22.0.1
INCOME TAXES - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Operating Loss Carryforwards [Line Items]        
Increase in valuation allowance $ 649,100 $ 378,400    
Unrecognized tax benefits 448,392 295,182 $ 217,574 $ 198,540
Unrecognized tax benefit that would impact annual effective tax rate 35,400      
Total accrued interest and penalties related to uncertain tax positions 7,800 $ 1,400 $ 500  
Undistributed earnings of non-U.S. subsidiaries 100      
Federal        
Operating Loss Carryforwards [Line Items]        
Net operating loss carryforwards 4,487,100      
Federal | Research Tax Credit Carryforward        
Operating Loss Carryforwards [Line Items]        
Tax credit carryforward 299,000      
State        
Operating Loss Carryforwards [Line Items]        
Net operating loss carryforwards 5,105,200      
State | Research Tax Credit Carryforward        
Operating Loss Carryforwards [Line Items]        
Tax credit carryforward 182,400      
Foreign        
Operating Loss Carryforwards [Line Items]        
Net operating loss carryforwards 976,900      
Maximum | Tax examinations or lapse of applicable statute of limitations        
Operating Loss Carryforwards [Line Items]        
Reasonably possible decrease in unrecognized tax benefits $ 10,800      
v3.22.0.1
INCOME TAXES - Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefit (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Balance at the beginning of the year $ 295,182 $ 217,574 $ 198,540
Gross increases related to prior period tax positions 6,552    
Gross decrease related to prior period tax positions   (2,615) (11,571)
Gross increases related to current period tax positions 124,238 77,235 30,676
Reductions related to lapse of statute of limitations 0 (49) (149)
Gross increases related to acquisitions 22,420 3,037 78
Balance at the end of the year $ 448,392 $ 295,182 $ 217,574
v3.22.0.1
STOCKHOLDER'S EQUITY - Narrative (Details)
 12 Months Ended 43 Months Ended 51 Months Ended 58 Months Ended
Dec. 31, 2021
vote
$ / shares
shares
Dec. 31, 2020
$ / shares
shares
Dec. 31, 2019
shares
Dec. 31, 2021
$ / shares
shares
Dec. 31, 2021
$ / shares
shares
Dec. 31, 2021
$ / shares
shares
Nov. 13, 2020
$ / shares
shares
Mar. 05, 2020
$ / shares
shares
May 25, 2018
$ / shares
shares
Mar. 06, 2017
$ / shares
shares
Class of Stock [Line Items]                    
Preferred stock, authorized (in shares) 100,000,000 100,000,000   100,000,000 100,000,000 100,000,000        
Preferred stock, par value (in USD per share) | $ / shares $ 0.0000001 $ 0.0000001   $ 0.0000001 $ 0.0000001 $ 0.0000001        
Preferred stock, outstanding (in shares) 0 0   0 0 0        
Recovery of common stock in connection with indemnification settlement agreement (in shares) 0 0 20,793              
Common Stock Warrant, 2022 Notes                    
Class of Stock [Line Items]                    
Outstanding warrants to purchase aggregate shares of capital stock (in shares)                   19,200,000
Exercise price of warrants (in USD per share) | $ / shares                   $ 31.18
Number of warrants exercised (in shares) 0     0 0 0        
Shares received upon exercise of convertible notes (in shares) 5,500,000         14,900,000        
Common Stock Warrant, 2023 Notes                    
Class of Stock [Line Items]                    
Outstanding warrants to purchase aggregate shares of capital stock (in shares)                 11,100,000  
Exercise price of warrants (in USD per share) | $ / shares                 $ 109.26  
Number of warrants exercised (in shares) 0     0 0 0        
Shares received upon exercise of convertible notes (in shares) 2,000,000.0                  
Common Stock Warrant, 2025 Notes                    
Class of Stock [Line Items]                    
Outstanding warrants to purchase aggregate shares of capital stock (in shares)               8,260,000    
Exercise price of warrants (in USD per share) | $ / shares               $ 161.34    
Common Stock Warrant, 2026 Notes                    
Class of Stock [Line Items]                    
Outstanding warrants to purchase aggregate shares of capital stock (in shares)             1,920,000      
Exercise price of warrants (in USD per share) | $ / shares             $ 368.16      
Common Stock Warrant, 2027 Notes                    
Class of Stock [Line Items]                    
Outstanding warrants to purchase aggregate shares of capital stock (in shares)             1,920,000      
Exercise price of warrants (in USD per share) | $ / shares             $ 414.18      
Class A Common Stock                    
Class of Stock [Line Items]                    
Number of votes per share | vote 1                  
Common stock, authorized (in shares) 1,000,000,000 1,000,000,000   1,000,000,000 1,000,000,000 1,000,000,000        
Common stock, par value (in USD per share) | $ / shares $ 0.0000001 $ 0.0000001   $ 0.0000001 $ 0.0000001 $ 0.0000001        
Common stock, outstanding (in shares) 403,237,209 390,187,079   403,237,209 403,237,209 403,237,209        
Class B Common Stock                    
Class of Stock [Line Items]                    
Number of votes per share | vote 10                  
Common stock, authorized (in shares) 500,000,000 500,000,000   500,000,000 500,000,000 500,000,000        
Common stock, par value (in USD per share) | $ / shares $ 0.0000001 $ 0.0000001   $ 0.0000001 $ 0.0000001 $ 0.0000001        
Common stock, outstanding (in shares) 61,706,578 65,997,697   61,706,578 61,706,578 61,706,578        
Convertible Debt | 2022 Convertible Notes                    
Class of Stock [Line Items]                    
Shares received upon exercise of convertible notes (in shares) 400,000     16,500,000 16,500,000          
Convertible Debt | 2023 Convertible Notes                    
Class of Stock [Line Items]                    
Shares received upon exercise of convertible notes (in shares) 5,200,000                  
v3.22.0.1
STOCKHOLDER'S EQUITY - Stock Plans and Share Based Compensation Narrative (Details)
$ / shares in Units, $ in Thousands
 12 Months Ended 73 Months Ended
Nov. 02, 2019
Nov. 17, 2015
payment_plan
shares
Dec. 31, 2021
USD ($)
plan
$ / shares
shares
Dec. 31, 2020
USD ($)
$ / shares
Dec. 31, 2019
USD ($)
$ / shares
Dec. 31, 2021
USD ($)
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Number of share-based compensation plans | plan     2      
Aggregate intrinsic value for options exercised | $     $ 1,100,000 $ 1,200,000 $ 616,300  
Weighted average grant-date fair value of options granted (in USD per share) | $ / shares     $ 131.57 $ 27.04 $ 30.58  
Share-based compensation expense | $     $ 608,042 $ 397,500 $ 297,863  
Share-based compensation expense related to capitalized software | $     15,100 13,900 8,200  
Unrecognized compensation cost related to outstanding stock options and restricted stock awards | $     $ 1,700,000     $ 1,700,000
Unrecognized compensation cost related to outstanding stock options and restricted stock awards, recognition period     2 years 9 months 18 days      
Restricted Stock Awards (RSAs) and Restricted Stock Units (RSUs)            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Vesting term     4 years      
Total fair value of shares vested | $     $ 1,600,000 817,500 552,900  
Employee Stock Purchase Plan            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Share-based compensation expense | $     $ 34,900 $ 18,200 $ 18,900  
2015 Equity Incentive Plan            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Number of shares available for future issuance (in shares)     118,149,752     118,149,752
Number of shares reserved (in shares)   30,000,000        
Shares reserved for issuance, percent     5.00%      
2015 Equity Incentive Plan | Maximum            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Annual increase of number of shares reserved (in shares)     40,000,000     40,000,000
2015 Equity Incentive Plan | Stock options, RSAs, and RSUs            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Number of options and RSU outstanding (in shares)     6,447,775     6,447,775
2009 Stock Option Plan            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Number of shares available for future issuance (in shares)   0        
2009 Stock Option Plan | Stock options, RSAs, and RSUs            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Number of options and RSU outstanding (in shares)     15,690,278     15,690,278
2009 Stock Option Plan | Options            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Vesting term     4 years      
Expiration period     10 years      
2009 Stock Option Plan | Options | Vesting Year One            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Vesting term     1 year      
Annual vesting rate     25.00%      
2015 Employee Stock Purchase Plan | Employee Stock Purchase Plan            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Number of shares available for future issuance (in shares)     22,378,096     22,378,096
Shares reserved for issuance, percent   1.00%        
Discount through payroll deductions as a percentage of eligible compensation 25.00% 15.00%        
Offering period   12 months        
Number of purchase periods | payment_plan   2        
Purchase price of common stock as a percentage of fair market value   85.00%        
Shares purchased under the plan (in shares)           6,301,377
2015 Employee Stock Purchase Plan | Employee Stock Purchase Plan | Minimum            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Annual increase of number of shares reserved (in shares)   8,400,000        
v3.22.0.1
STOCKHOLDER'S EQUITY - Summary of Stock Option Activity (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Number of Stock Options Outstanding    
Beginning balance (in shares) 13,630,882  
Granted (in shares) 198,771  
Exercised (in shares) (4,900,413)  
Forfeited and canceled (in shares) (13,140)  
Ending balance (in shares) 8,916,100 13,630,882
Weighted Average Exercise Price    
Beginning balance (in USD per share) $ 17.84  
Granted (in USD per share) 255.22  
Exercised (in USD per share) 12.33  
Forfeited and canceled (in USD per share) 67.50  
Ending balance (in USD per share) $ 26.09 $ 17.84
Additional Disclosures    
Weighted Average Remaining Contractual Term (in years) 3 years 10 months 20 days 3 years 10 months 2 days
Aggregate Intrinsic Value $ 1,226,105 $ 2,723,394
Options exercisable, number of stock options outstanding (in shares) 7,769,686  
Options exercisable, weighted average exercise price (in USD per share) $ 16.58  
Options exercisable, weighted average remaining contractual term (in years) 3 years 3 months 18 days  
Options exercisable, aggregate intrinsic value $ 1,129,046  
v3.22.0.1
STOCKHOLDER'S EQUITY - Restricted Stock Awards and Restricted Stock Units Activity (Details) - Restricted Stock Awards (RSAs) and Restricted Stock Units (RSUs)
 12 Months Ended
Dec. 31, 2021
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Vesting term 4 years
Number of shares  
Beginning balance (in shares) | shares 15,622,645
Granted (in shares) | shares 5,313,636
Vested (in shares) | shares (6,708,326)
Forfeited (in shares) | shares (1,006,002)
Ending balance (in shares) | shares 13,221,953
Weighted Average Grant Date Fair Value  
Beginning balance (in USD per share) | $ / shares $ 71.71
Granted (in USD per share) | $ / shares 247.56
Vested (in USD per share) | $ / shares 74.97
Forfeited (in USD per share) | $ / shares 109.48
Ending balance (in USD per share) | $ / shares $ 137.86
v3.22.0.1
STOCKHOLDER'S EQUITY - Stock Options Fair Value Assumptions (Details) - Options
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Dividend yield 0.00% 0.00% 0.00%
Risk-free interest rate 1.08% 0.41% 2.37%
Expected volatility 54.91% 48.29% 40.48%
Expected term (years) 6 years 7 days 6 years 7 days 6 years 7 days
v3.22.0.1
STOCKHOLDER'S EQUITY - Effects of Share-Based Compensation on Consolidated Statements of Operations (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Share-based compensation expense $ 608,042 $ 397,500 $ 297,863
Cost of revenue      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Share-based compensation expense 410 368 155
Product development      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Share-based compensation expense 446,596 289,553 210,840
Sales and marketing      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Share-based compensation expense 57,070 36,627 26,720
General and administrative      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Share-based compensation expense $ 103,966 $ 70,952 $ 60,148
v3.22.0.1
NET INCOME PER SHARE - Calculation of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Numerator:      
Net income $ 158,826 $ 213,105 $ 375,446
Less: Net loss attributable to noncontrolling interests (7,458) 0 0
Net income attributable to common stockholders, basic 166,284 213,105 375,446
Net income attributable to common stockholders, diluted $ 166,284 $ 213,105 $ 375,446
Basic shares:      
Weighted-average common shares outstanding (in shares) 458,780 443,773 425,728
Weighted-average unvested shares (in shares) (348) (647) (729)
Weighted-average shares used to compute basic net income per share attributable to common stockholders (in shares) 458,432 443,126 424,999
Diluted shares:      
Stock options, restricted stock, and employee stock purchase plan (in shares) 17,849 23,628 30,645
Convertible senior notes (in shares) 408 0 0
Common stock warrants (in shares) 25,090 15,413 10,432
Weighted-average shares used to compute diluted net income per share attributable to common stockholders (in shares) 501,779 482,167 466,076
Net income per share attributable to common stockholders:      
Basic (in USD per share) $ 0.36 $ 0.48 $ 0.88
Diluted (in USD per share) $ 0.33 $ 0.44 $ 0.81
v3.22.0.1
NET INCOME PER SHARE - Antidilutive Securities Excluded from Computation of Diluted Net Income (Loss) Per Share (Details) - shares
shares in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of earnings per share (in shares) 48,898 59,722 54,885
Stock options, restricted stock, and employee stock purchase plan      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of earnings per share (in shares) 7,680 12,509 14,760
Common stock warrants      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of earnings per share (in shares) 17,271 22,140 19,820
Convertible senior notes      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of earnings per share (in shares) 23,947 25,073 20,305
v3.22.0.1
RELATED PARTY TRANSACTIONS (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Jul. 31, 2019
Related Party Transaction [Line Items]      
Total lease payments over term $ 540,172    
Operating lease right-of-use assets 449,406 $ 456,888  
Operating lease liabilities 459,044    
Affiliated Entity | Operating Lease Agreement      
Related Party Transaction [Line Items]      
Operating lease term     15 years 6 months
Total lease payments over term     $ 42,700
Operating lease right-of-use assets 20,800    
Operating lease liabilities $ 33,800    
v3.22.0.1
COMMITMENTS AND CONTINGENCIES - Narrative (Details)
 1 Months Ended 12 Months Ended
Jul. 31, 2019
USD ($)
ft²
renewal_option
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Lessee, Lease, Description [Line Items]        
Total lease payments over term   $ 540,172,000    
Finance lease obligation   0    
Total rental expenses for operating leases   $ 80,300,000 $ 75,200,000 $ 32,500,000
Operating Lease Agreement | Affiliated Entity        
Lessee, Lease, Description [Line Items]        
Operating lease term 15 years 6 months      
Operating lease renewal term 5 years      
Leased area of office space (in sq ft) | ft² 226,185      
Operating lease, number of renewal options | renewal_option 2      
Total lease payments over term $ 42,700,000      
Maximum        
Lessee, Lease, Description [Line Items]        
Operating lease, option to terminate leased space (up to) 0.50      
Building        
Lessee, Lease, Description [Line Items]        
Operating lease renewal term   5 years    
Operating lease option to terminate term   1 year    
Building | Minimum        
Lessee, Lease, Description [Line Items]        
Operating lease term   1 year    
Building | Maximum        
Lessee, Lease, Description [Line Items]        
Operating lease term   15 years    
v3.22.0.1
COMMITMENTS AND CONTINGENCIES - Lease Expense Components (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]    
Fixed operating lease costs $ 83,136 $ 70,254
Variable operating lease costs 15,568 15,625
Short term lease costs 1,953 6,375
Sublease income (12,210) (8,594)
Finance lease costs    
Amortization of finance right-of-use assets 0 2,446
Total lease costs $ 88,447 $ 86,106
v3.22.0.1
COMMITMENTS AND CONTINGENCIES - Other Information Related to Leases (Details)
Dec. 31, 2021
Weighted Average Remaining Lease Term:  
Operating leases 8 years 3 months 18 days
Weighted Average Discount Rate:  
Operating leases 4.00%
v3.22.0.1
COMMITMENTS AND CONTINGENCIES - Cash Flows Related to Leases (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Cash flows from operating activities:      
Payments for operating lease liabilities $ (77,201) $ (46,901)  
Cash flows from financing activities:      
Principal payments on finance lease obligation 0 (2,446)  
Supplemental Cash Flow Data:      
Right-of-use assets obtained in exchange for operating lease obligations $ 63,290 $ 342,662 $ 40,555
v3.22.0.1
COMMITMENTS AND CONTINGENCIES - Future Minimum Lease Payments Under Non-Cancelable Operating Leases (Details)
$ in Thousands
Dec. 31, 2021
USD ($)
Operating  
2022 $ 78,304
2023 77,904
2024 59,612
2025 53,839
2026 46,015
Thereafter 224,498
Total 540,172
Less: amount representing interest 76,407
Less: leases executed but not yet commenced 0
Less: lease incentives and transfer to held for sale 4,721
Total $ 459,044
v3.22.0.1
SEGMENT AND GEOGRAPHICAL INFORMATION - Narrative (Details)
 12 Months Ended
Dec. 31, 2021
segment
Segment Reporting [Abstract]  
Number of reportable segments 2
v3.22.0.1
SEGMENT AND GEOGRAPHICAL INFORMATION - Segment Reporting Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Segment Reporting Information [Line Items]      
Revenue $ 17,661,203 $ 9,497,578 $ 4,713,500
Gross profit 4,419,823 2,733,409 1,889,685
Operating Segments      
Segment Reporting Information [Line Items]      
Revenue 17,661,203 9,497,578 4,567,587
Gross profit 4,419,823 2,733,409 1,848,095
Corporate and Other      
Segment Reporting Information [Line Items]      
Revenue 152,356 0 0
Gross profit 32,305 0 0
Cash App | Operating Segments      
Segment Reporting Information [Line Items]      
Revenue 12,315,499 5,968,386 1,105,599
Gross profit 2,070,847 1,225,578 457,668
Square | Operating Segments      
Segment Reporting Information [Line Items]      
Revenue 5,193,348 3,529,192 3,461,988
Gross profit 2,316,671 1,507,831 1,390,427
Transaction-based revenue      
Segment Reporting Information [Line Items]      
Revenue 4,793,146 3,294,978 3,081,074
Revenue 4,793,146 3,294,978 3,081,074
Transaction-based revenue | Operating Segments      
Segment Reporting Information [Line Items]      
Revenue 4,793,146 3,294,978 3,081,074
Transaction-based revenue | Corporate and Other      
Segment Reporting Information [Line Items]      
Revenue 0 0 0
Transaction-based revenue | Cash App | Operating Segments      
Segment Reporting Information [Line Items]      
Revenue 409,844 233,747 72,865
Transaction-based revenue | Square | Operating Segments      
Segment Reporting Information [Line Items]      
Revenue 4,383,302 3,061,231 3,008,209
Subscription and services-based revenue      
Segment Reporting Information [Line Items]      
Revenue 2,445,811 1,447,188 883,922
Revenue 2,709,731 1,539,403 1,031,456
Subscription and services-based revenue | Operating Segments      
Segment Reporting Information [Line Items]      
Revenue 2,709,731 1,539,403 885,543
Subscription and services-based revenue | Corporate and Other      
Segment Reporting Information [Line Items]      
Revenue 152,356 0 0
Subscription and services-based revenue | Cash App | Operating Segments      
Segment Reporting Information [Line Items]      
Revenue 1,893,008 1,163,096 516,269
Subscription and services-based revenue | Square | Operating Segments      
Segment Reporting Information [Line Items]      
Revenue 664,367 376,307 369,274
Hardware revenue      
Segment Reporting Information [Line Items]      
Revenue 145,679 91,654 84,505
Revenue 145,679 91,654 84,505
Hardware revenue | Operating Segments      
Segment Reporting Information [Line Items]      
Revenue 145,679 91,654 84,505
Hardware revenue | Corporate and Other      
Segment Reporting Information [Line Items]      
Revenue 0 0 0
Hardware revenue | Cash App | Operating Segments      
Segment Reporting Information [Line Items]      
Revenue 0 0 0
Hardware revenue | Square | Operating Segments      
Segment Reporting Information [Line Items]      
Revenue 145,679 91,654 84,505
Bitcoin revenue      
Segment Reporting Information [Line Items]      
Revenue 10,012,647 4,571,543 516,465
Revenue 10,012,647 4,571,543 516,465
Bitcoin revenue | Operating Segments      
Segment Reporting Information [Line Items]      
Revenue 10,012,647 4,571,543 516,465
Bitcoin revenue | Corporate and Other      
Segment Reporting Information [Line Items]      
Revenue 0 0 0
Bitcoin revenue | Cash App | Operating Segments      
Segment Reporting Information [Line Items]      
Revenue 10,012,647 4,571,543 516,465
Bitcoin revenue | Square | Operating Segments      
Segment Reporting Information [Line Items]      
Revenue $ 0 $ 0 $ 0
v3.22.0.1
SEGMENT AND GEOGRAPHICAL INFORMATION - Reconciliation of Revenue from Segments to Consolidated (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Segment Reporting, Revenue Reconciling Item [Line Items]      
Revenue $ 17,661,203 $ 9,497,578 $ 4,713,500
Operating Segments      
Segment Reporting, Revenue Reconciling Item [Line Items]      
Revenue 17,661,203 9,497,578 4,567,587
Segment Reconciling Items      
Segment Reporting, Revenue Reconciling Item [Line Items]      
Revenue $ 0 $ 0 $ 145,913
v3.22.0.1
SEGMENT AND GEOGRAPHICAL INFORMATION - Reconciliation of Total Segment Profit to Income before applicable Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Gross profit $ 4,419,823 $ 2,733,409 $ 1,889,685
Less: Product development 1,399,079 885,681 674,165
Less: Sales and marketing 1,617,189 1,109,670 625,126
Less: General and administrative 983,326 579,203 436,878
Less: Transaction and loan losses 187,991 177,670 126,959
Less: Bitcoin impairment losses 71,126 0 0
Less: Gain on sale of asset group 0 0 (373,445)
Less: Interest expense, net 33,124 56,943 21,516
Other expense (income), net (29,474) (291,725) 273
Income before income tax 157,462 215,967 378,213
Operating Segments      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Gross profit 4,419,823 2,733,409 1,848,095
Segment Reconciling Items      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Gross profit $ 0 $ 0 $ 41,590
v3.22.0.1
SEGMENT AND GEOGRAPHICAL INFORMATION - Revenue by Geographic Area (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenue $ 17,661,203 $ 9,497,578 $ 4,713,500
United States      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenue 17,077,532 9,186,440 4,472,473
International      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenue $ 583,671 $ 311,138 $ 241,027
v3.22.0.1
SEGMENT AND GEOGRAPHICAL INFORMATION - Long-Lived Assets by Geographic Area (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Revenues from External Customers and Long-Lived Assets [Line Items]    
Long-lived assets $ 1,507,871 $ 1,144,721
United States    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Long-lived assets 1,426,103 1,086,379
International    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Long-lived assets $ 81,768 $ 58,342
v3.22.0.1
SUPPLEMENTAL CASH FLOW INFORMATION - Supplemental Cash Flow Data (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Supplemental Cash Flow Data:      
Cash paid for interest $ 40,446 $ 3,857 $ 5,677
Cash paid for income taxes 10,041 6,001 2,744
Supplemental disclosures of non-cash investing and financing activities:      
Right-of-use assets obtained in exchange for operating lease obligations 63,290 342,662 40,555
Purchases of property and equipment in accounts payable and accrued expenses 15,071 (3,975) (419)
Unpaid business combination purchase price 50,079 8,974 8,411
Non-cash proceeds from sale of asset group 0 0 100,000
Fair value of common stock issued related to business combination (28,735) (35,318) 0
Recovery of common stock in connection with indemnification settlement agreement 0 0 789
Fair value of common stock issued to settle the conversion of senior notes (1,258,562) (1,398,829) 0
Fair value of shares received to settle senior note hedges 1,800,933 369,015 0
Bitcoin lent to third party borrowers $ 6,084 $ 0 $ 0
v3.22.0.1
SUBSEQUENT EVENTS (Details) - Revolving Secured Credit Facility - 2020 Credit Facility - Line of Credit - USD ($)
Feb. 23, 2022
May 31, 2020
Subsequent Event [Line Items]    
Maximum borrowing capacity   $ 500,000,000
Subsequent Event    
Subsequent Event [Line Items]    
Maximum borrowing capacity, increase limit $ 100,000,000  
Maximum borrowing capacity $ 600,000,000