Settlement Assets and Obligations

9 Months Ended

Sep. 30, 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 accounts 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 accrued expenses for money transfers, content providers, and EFT customer deposits and accounts payable to agents and content providers. Money transfer accrued expenses 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 accrued expenses represent amounts not yet presented for payment. Due to the agent funding and settlement process, accrued expenses to agents represent amounts due to agents for money transfers that have not been settled with transferees.

	As of
(in thousands)	September 30, 2021		December 31, 2020
Settlement assets:
Settlement cash and cash equivalents	$	259,727	$	188,191
Settlement restricted cash	52,433		76,674
Accounts receivable, net of credit losses of $31,220 and $35,800	478,760		641,955
Prepaid expenses and other current assets	137,820		234,055
Total settlement assets	$	928,740	$	1,140,875
Settlement obligations:
Trade account payables	$	319,193	$	571,175
Accrued expenses and other current liabilities	609,547		569,700
Total settlement obligations	$	928,740	$	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)	September 30, 2021		December 31, 2020		September 30, 2020		December 31, 2019
Cash and cash equivalents	$	1,048,466	$	1,420,255	$	1,008,183	$	786,081
Restricted cash	3,626		3,334		14,204		34,301
ATM cash	669,686		411,054		409,683		665,641
Settlement cash and cash equivalents	259,727		188,191		272,467		282,188
Settlement restricted cash	52,433		76,674		44,158		49,168
Cash and cash equivalents and restricted cash at end of period	$	2,033,938	$	2,099,508	$	1,748,695	$	1,817,379