Settlement Assets and Obligations

9 Months Ended

Sep. 30, 2022

(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. We record 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. The settlement cash held at the Company is primarily generated from the monies remitted by consumers through Company agents and financial institutions in payment of the face value of the payment service or foreign currency purchased and the related fees charged to purchase the currency. We use our cash and cash equivalents to pay the face value of the payment service product upon presentation by the recipient. Cash received by Company agents and merchants generally becomes available to us 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 us.

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 us. 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, 2022		December 31, 2021
Settlement assets:
Settlement cash and cash equivalents	$	210,802	$	203,624
Settlement restricted cash	46,148		74,897
Accounts receivable, net of credit losses of $30,622 and $27,341	569,517		619,738
Prepaid expenses and other current assets	208,431		204,130
Total settlement assets	$	1,034,898	$	1,102,389
Settlement obligations:
Trade account payables	$	378,452	$	461,135
Accrued expenses and other current liabilities	656,446		641,254
Total settlement obligations	$	1,034,898	$	1,102,389

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, 2022		December 31, 2021		September 30, 2021		December 31, 2020
Cash and cash equivalents	$	967,100	$	1,260,466	$	1,048,466	$	1,420,255
Restricted cash	8,396		3,693		3,626		3,334
ATM cash	646,121		543,422		669,686		411,054
Settlement cash and cash equivalents	210,802		203,624		259,727		188,191
Settlement restricted cash	46,148		74,897		52,433		76,674
Cash and cash equivalents and restricted cash at end of period	$	1,878,567	$	2,086,102	$	2,033,938	$	2,099,508