Settlement Assets and Obligations

3 Months Ended

Mar. 31, 2021

(4) 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)	March 31, 2021		December 31, 2020
Settlement assets:
Settlement cash and cash equivalents	$	209,853	$	188,191
Settlement restricted cash	58,200		76,674
Accounts receivable, net of credit allowance of $33,980 and $35,800	478,209		641,955
Prepaid expenses and other current assets	214,051		234,055
Total settlement assets	$	960,313	$	1,140,875
Settlement obligations:
Trade account payables	$	356,612	$	571,175
Accrued expenses and other current liabilities	603,701		569,700
Total settlement obligations	$	960,313	$	1,140,875

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)	March 31, 2021		December 31, 2020		March 31, 2020		December 31, 2019
Cash and cash equivalents	$	1,145,406	$	1,420,255	$	709,521	$	786,081
Restricted cash	2,897		3,334		28,953		34,301
ATM cash	339,883		411,054		558,580		665,641
Settlement cash and cash equivalents	209,853		188,191		256,456		282,188
Settlement restricted cash	58,200		76,674		36,243		49,168
Cash and cash equivalents and restricted cash at end of period	$	1,756,239	$	2,099,508	$	1,589,753	$	1,817,379