Settlement Assets and Obligations

9 Months Ended

Sep. 30, 2020

(3) SETTLEMENT ASSETS AND OBLIGATIONS

Settlement assets represent funds received or to be received from agents for unsettled money transfers and from merchants for unsettled prepaid transactions. The Company records corresponding settlement obligations relating to amounts payable. Settlement assets consist of cash and cash equivalents, restricted cash, accounts receivable and prepaid expenses and other current assets. Cash received by Euronet agents and merchants generally becomes available to the Company within two weeks after initial receipt by the business partner. Receivables from business partners represent funds collected by such business partners that are in transit to the Company.

Settlement obligations consist of money transfers and accounts payable to agents and content providers. Money transfer accounts payable represent amounts to be paid to transferees when they request funds. Most agents typically settle with transferees first then obtain reimbursement from the Company. Money order accounts payable represent amounts not yet presented for payment. Due to the agent funding and settlement process, accounts payable to agents represent amounts due to agents for money transfers that have not been settled with transferees.


	As of
(in thousands)	September 30, 2020		December 31, 2019
Settlement assets:
Settlement cash and cash equivalents	$	272,467	$	282,188
Settlement restricted cash	44,158		49,168
Accounts receivable, net of credit losses	434,828		574,410
Prepaid expenses and other current assets	124,330		107,301
Total settlement assets	$	875,783	$	1,013,067
Settlement obligations:
Trade account payables	$	346,391	$	504,667
Accrued expenses and other current liabilities	529,392		508,400
Total settlement obligations	$	875,783	$	1,013,067

A portion of the Company's credit losses are recorded in the accounts receivable within settlement assets. The balance of credit losses related to accounts receivable within settlement assets was $29.9 million and $24.0 million as of September 30, 2020 and December 31, 2019, respectively.

The table below reconciles cash and cash equivalents, restricted cash, ATM cash, settlement cash and cash equivalents, and settlement restricted cash as presented within "Cash and cash equivalents and restricted cash" in the Consolidated Statement of Cash Flows.


	As of
(in thousands)	September 30, 2020		December 31, 2019		September 30, 2019		December 31, 2018
Cash and cash equivalents	$	1,008,183	$	786,081	$	878,492	$	385,031
Restricted cash	14,204		34,301		21,844		31,237
ATM cash	409,683		665,641		603,176		395,378
Settlement cash and cash equivalents	272,467		282,188		249,181		273,948
Settlement restricted cash	44,158		49,168		42,062		45,358
Cash and cash equivalents and restricted cash at end of period	$	1,748,695	$	1,817,379	$	1,794,755	$	1,130,952