Insperity (NSP) 10-Q 2 Nov 20 2020 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2020	Oct. 26, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2020
Document Transition Report	false
Entity File Number	1-13998
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	76-0479645
Entity Address, Address Line One	19001 Crescent Springs Drive
Entity Address, City or Town	Kingwood,
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77339
City Area Code	281
Local Phone Number	358-8986
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
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		38,354,147
Entity Registrant Name	INSPERITY, INC.
Entity Central Index Key	0001000753
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Amendment Flag	false
Common Stock [Member]
Entity Information [Line Items]
Title of 12(b) Security	Common Stock, $.01 par value per share
Trading Symbol	NSP
Security Exchange Name	NYSE
Rights [Member]
Entity Information [Line Items]
Title of 12(b) Security	Rights to Purchase Series A Junior Participating Preferred Stock
Trading Symbol	NSP
Security Exchange Name	NYSE

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Assets
Cash and cash equivalents	$ 372,356	$ 367,342
Restricted cash	45,265	49,295
Marketable securities	33,994	34,728
Accounts receivable, net	528,712	465,779
Prepaid insurance	34,759	10,418
Other current assets	33,772	43,493
Income taxes receivable	0	3,691
Total current assets	1,048,858	974,746
Property and equipment, net of accumulated depreciation	196,210	147,706
Right-of-use (“ROU”) leased assets	60,682	56,886
Prepaid health insurance	9,000	9,000
Deposits – health insurance	7,900	8,100
Deposits – workers’ compensation	181,634	175,913
Goodwill and other intangible assets, net	12,707	12,714
Deferred income taxes, net	0	3,956
Other assets	6,291	5,975
Total assets	1,523,282	1,394,996
Current liabilities:
Accounts payable	6,016	4,565
Payroll taxes and other payroll deductions payable	178,052	277,248
Accrued worksite employee payroll cost	471,796	401,859
Accrued health insurance costs	44,639	21,180
Accrued workers’ compensation costs	47,956	52,868
Accrued corporate payroll and commissions	39,925	52,612
Other accrued liabilities	46,400	58,713
Income taxes payable	6,286	0
Total current liabilities	841,070	869,045
Noncurrent liabilities:
Accrued workers’ compensation costs	196,247	193,609
Long-term debt	369,400	269,400
Operating lease liabilities, net of current	64,436	58,863
Deferred income taxes, net	2,801	0
Other accrued liabilities, net of current	8,689	0
Total noncurrent liabilities	641,573	521,872
Commitments and contingencies
Stockholders’ equity:
Common stock	555	555
Additional paid-in capital	74,598	48,141
Treasury stock, at cost	(620,638)	(544,102)
Retained earnings	586,124	499,485
Total stockholders’ equity	40,639	4,079
Total liabilities and stockholders’ equity	$ 1,523,282	$ 1,394,996

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Statement [Abstract]
Revenues(1)	$ 1,007,820	$ 1,043,388	$ 3,230,669	$ 3,239,714
Payroll taxes, benefits and workers’ compensation costs	822,787	872,842	2,591,365	2,668,716
Gross profit	185,033	170,546	639,304	570,998
Salaries, wages and payroll taxes	89,429	79,264	266,640	237,340
Stock-based compensation	20,864	6,517	38,110	20,813
Commissions	7,722	8,034	23,657	22,727
Advertising	4,781	4,895	15,334	17,474
General and administrative expenses	25,646	29,773	85,254	92,801
Depreciation and amortization	7,819	7,330	23,329	20,929
Total operating expenses	156,261	135,813	452,324	412,084
Operating income	28,772	34,733	186,980	158,914
Other income (expense):
Interest income	103	2,574	2,351	8,621
Interest expense	(1,731)	(2,122)	(6,312)	(5,442)
Income before income tax expense	27,144	35,185	183,019	162,093
Income tax expense	7,135	9,326	49,067	31,389
Net income	20,009	25,859	133,952	130,704
Less distributed and undistributed earnings allocated to participating securities	(104)	(284)	(792)	(1,546)
Net income allocated to common shares	$ 19,905	$ 25,575	$ 133,160	$ 129,158
Basic net income per share of common stock (in dollars per share)	$ 0.52	$ 0.64	$ 3.45	$ 3.19
Diluted net income per share of common stock (in dollars per share)	$ 0.51	$ 0.63	$ 3.43	$ 3.18
Revenue Composition [Abstract]
Gross billings	$ 6,563,727	$ 6,555,865	$ 20,356,164	$ 19,804,549
Worksite employee payroll cost	5,555,907	5,512,477	17,125,495	16,564,835
Revenues(1)	$ 1,007,820	$ 1,043,388	$ 3,230,669	$ 3,239,714

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities
Net income	$ 133,952	$ 130,704
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	23,329	20,929
Stock-based compensation	38,110	20,813
Deferred income taxes	6,757	8,659
Changes in operating assets and liabilities:
Accounts receivable	(62,933)	(83,267)
Prepaid insurance	(24,341)	(13,750)
Other current assets	9,721	1,283
Other assets and ROU assets	10,862	(2,709)
Accounts payable	1,451	(5,249)
Payroll taxes and other payroll deductions payable	(99,196)	(80,549)
Accrued worksite employee payroll expense	69,937	81,478
Accrued health insurance costs	23,459	(1,914)
Accrued workers’ compensation costs	(2,273)	6,087
Accrued corporate payroll, commissions and other accrued liabilities	(32,238)	(22,830)
Income taxes payable/receivable	9,977	(12,609)
Total adjustments	(27,378)	(83,628)
Net cash provided by operating activities	106,574	47,076
Marketable securities:
Purchases	(42,007)	(90,909)
Proceeds from dispositions	484	5,799
Proceeds from maturities	41,860	85,480
Property and equipment:
Purchases	(68,770)	(35,968)
Net cash used in investing activities	(68,433)	(35,598)
Cash flows from financing activities:
Purchase of treasury stock	(91,216)	(153,668)
Dividends paid	(46,522)	(36,777)
Borrowings under revolving line of credit	100,000	95,000
Other	(6,302)	(7,215)
Net cash used in financing activities	(31,436)	(88,230)
Net increase (decrease) in cash, cash equivalents and restricted cash	6,705	(76,752)
Cash, cash equivalents and restricted cash beginning of period	592,550	535,474
Cash, cash equivalents and restricted cash end of period	599,255	458,722
Supplemental Cash Flow Information [Abstract]
Cash and cash equivalents	372,356	243,439
Restricted cash	45,265	45,251
Deposits workers compensation	181,634	170,032
ROU assets obtained in exchange for lease obligations	$ 18,364	$ 21,980

CONSOLIDATED STATEMENT OF STOCK

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock [Member]	Additional Paid-In Capital [Member]	Treasury Stock [Member]	Retained Earnings [Member]
Balance at Dec. 31, 2018	$ 77,676	$ 555	$ 36,752	$ (357,569)	$ 397,938
Balance (shares) at Dec. 31, 2018		55,489
Purchase of treasury stock, at cost	(153,668)	$ 0	0	(153,668)	0
Issuance of long-term incentive awards and dividend equivalents	0	0	(7,695)	8,646	(951)
Stock-based compensation expense	20,813	0	15,656	5,157	0
Other	2,205	0	1,688	517	0
Dividends paid	(36,777)	0	0	0	(36,777)
Unrealized gain (loss) on marketable securities, net of tax	35	0	0	0	35
Net income	130,704	0	0	0	130,704
Balance at Sep. 30, 2019	40,988	$ 555	46,401	(496,917)	490,949
Balance (shares) at Sep. 30, 2019		55,489
Balance at Jun. 30, 2019	134,889	$ 555	41,009	(383,830)	477,155
Balance (shares) at Jun. 30, 2019		55,489
Purchase of treasury stock, at cost	(114,872)	$ 0	0	(114,872)	0
Stock-based compensation expense	6,517	0	4,880	1,637	0
Other	660	0	512	148	0
Dividends paid	(12,037)	0	0	0	(12,037)
Unrealized gain (loss) on marketable securities, net of tax	(28)	0	0	0	(28)
Net income	25,859	0	0	0	25,859
Balance at Sep. 30, 2019	40,988	$ 555	46,401	(496,917)	490,949
Balance (shares) at Sep. 30, 2019		55,489
Balance at Dec. 31, 2019	4,079	$ 555	48,141	(544,102)	499,485
Balance (shares) at Dec. 31, 2019		55,489
Purchase of treasury stock, at cost	(91,216)	$ 0	0	(91,216)	0
Issuance of long-term incentive awards and dividend equivalents	0	0	(7,088)	7,898	(810)
Stock-based compensation expense	38,110	0	32,893	5,217	0
Other	2,217	0	652	1,565	0
Dividends paid	(46,522)	0	0	0	(46,522)
Unrealized gain (loss) on marketable securities, net of tax	19	0	0	0	19
Net income	133,952	0	0	0	133,952
Balance at Sep. 30, 2020	40,639	$ 555	74,598	(620,638)	586,124
Balance (shares) at Sep. 30, 2020		55,489
Balance at Jun. 30, 2020	44,638	$ 555	54,783	(592,313)	581,613
Balance (shares) at Jun. 30, 2020		55,489
Purchase of treasury stock, at cost	(29,986)	$ 0	0	(29,986)	0
Stock-based compensation expense	20,864	0	19,552	1,312	0
Other	612	0	263	349	0
Dividends paid	(15,448)	0	0	0	(15,448)
Unrealized gain (loss) on marketable securities, net of tax	(50)	0	0	0	(50)
Net income	20,009	0	0	0	20,009
Balance at Sep. 30, 2020	$ 40,639	$ 555	$ 74,598	$ (620,638)	$ 586,124
Balance (shares) at Sep. 30, 2020		55,489

Basis of Presentation (Notes)

Basis of Presentation (Notes)	9 Months Ended
	Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	1. Basis of Presentation Insperity, Inc., a Delaware corporation (“Insperity,” “we,” “our,” and “us”), provides an array of human resources (“HR”) and business solutions designed to help improve business performance. Our most comprehensive HR services offerings are provided through our professional employer organization (“PEO”) services, known as Workforce Optimization ® and Workforce Synchronization TM solutions (together, our “PEO HR Outsourcing solutions”), which encompass a broad range of HR functions, including payroll and employment administration, employee benefits, workers’ compensation, government compliance, performance management, and training and development services, along with our cloud-based human capital management solution, the Insperity Premier TM platform. In addition to our PEO HR Outsourcing solutions, we also offer a comprehensive traditional payroll and human capital management solution, known as Workforce Acceleration. We also offer a number of other business performance solutions, including Time and Attendance, Performance Management, Organizational Planning, Recruiting Services, Employment Screening, Expense Management Services, Retirement Services and Insurance Services, many of which are offered as a cloud-based software solution. These other products or services are offered separately or with our other solutions. The Consolidated Financial Statements include the accounts of Insperity, Inc. and its wholly owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. The accompanying Consolidated Financial Statements should be read in conjunction with our audited Consolidated Financial Statements at and for the year ended December 31, 2019. Our Condensed Consolidated Balance Sheet at December 31, 2019 has been derived from the audited financial statements at that date, but does not include all of the information or footnotes required by GAAP for complete financial statements. Our Condensed Consolidated Balance Sheet at September 30, 2020 and our Consolidated Statements of Operations for the three and nine month periods ended September 30, 2020 and 2019, our Consolidated Statements of Cash Flows for the nine month periods ended September 30, 2020 and 2019 and our Consolidated Statements of Stockholders’ Equity for the nine month periods ended September 30, 2020 and 2019, have been prepared by us without audit. In the opinion of management, all adjustments, consisting only of normal recurring adjustments necessary to present fairly the consolidated financial position, results of operations and cash flows, have been made. The results of operations for the interim periods are not necessarily indicative of the operating results for a full year or of future operations.

Accounting Policies (Notes)

Accounting Policies (Notes)	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Accounting Policies	2. Accounting Policies Health Insurance Costs We provide group health insurance coverage to our WSEEs in our PEO HR Outsourcing solutions through a national network of carriers, including UnitedHealthcare (“United”), UnitedHealthcare of California, Kaiser Permanente, Blue Shield of California, HMSA BlueCross BlueShield of Hawaii, and Tufts, all of which provide fully insured policies or service contracts. The policy with United provides approximately 87% of our health insurance coverage. While the policy with United is a fully-insured plan, as a result of certain contractual terms, we have accounted for this plan since its inception using a partially self-funded insurance accounting model. Effective January 1, 2020, under the amended agreement with United, we no longer have financial responsibilities for a participant’s annual claim costs that exceed $1 million. Accordingly, we record the costs of the United plan, including an estimate of the incurred claims, taxes and administrative fees (collectively the “Plan Costs”) as benefits expense, which is a component of direct costs, in our Consolidated Statements of Operations. The estimated incurred claims are based upon: (1) the level of claims processed during the quarter; (2) estimated completion rates based upon recent claim development patterns under the plan; and (3) the number of participants in the plan, including both active and COBRA enrollees. Each reporting period, changes in the estimated ultimate costs resulting from claim trends, plan design and migration, participant demographics and other factors are incorporated into the benefits costs, which requires a significant level of judgment. Additionally, since the plan’s inception, under the terms of the contract, United establishes cash funding rates 90 days in advance of the beginning of a reporting quarter. If the Plan Costs for a reporting quarter are greater than the premiums paid and owed to United, a deficit in the plan would be incurred and a liability for the excess costs would be accrued in our Condensed Consolidated Balance Sheets. On the other hand, if the Plan Costs for the reporting quarter are less than the premiums paid and owed to United, a surplus in the plan would be incurred and we would record an asset for the excess premiums in our Condensed Consolidated Balance Sheets. The terms of the arrangement require us to maintain an accumulated cash surplus in the plan of $9.0 million, which is reported as long-term prepaid insurance. In addition, United requires a deposit equal to approximately one day of claims funding activity, which was $6.5 million at September 30, 2020, and is included in deposits - health insurance as a long-term asset on our Condensed Consolidated Balance Sheets. As of September 30, 2020, Plan Costs were less than the net premiums paid and owed to United by $32.8 million. As this amount is in excess of the agreed-upon $9.0 million surplus maintenance level, the $23.8 million difference is included in prepaid insurance, a current asset, in our Condensed Consolidated Balance Sheets. The premiums, including the additional quarterly premiums, owed to United at September 30, 2020 were $38.3 million, which is included in accrued health insurance costs, a current liability in our Condensed Consolidated Balance Sheets. Our benefits costs incurred in the first nine months of 2020 included a reduction of $1.9 million for changes in estimated run-off related to prior periods. Our benefits costs incurred in the first nine months of 2019 included a charge of $2.9 million for changes in estimated run-off related to prior periods. Workers’ Compensation Costs Our workers’ compensation coverage for our WSEEs in our PEO HR Outsourcing solutions has been provided through an arrangement with the Chubb Group of Insurance Companies or its predecessors (the “Chubb Program”) since 2007. The Chubb Program is fully insured in that Chubb has the responsibility to pay all claims incurred under the policy regardless of whether we satisfy our responsibilities. Under the Chubb Program for claims incurred on or before September 30, 2019, we have financial responsibility to Chubb for the first $1 million layer of claims per occurrence and, for claims over $1 million, up to a maximum aggregate amount of $6 million per policy year for claims that exceed $1 million. Chubb bears the financial responsibility for all claims in excess of these levels. Effective for claims incurred on or after October 1, 2019, we have financial responsibility to Chubb for the first $1.5 million layer of claims per occurrence and, for claims over $1.5 million, up to a maximum aggregate amount of $6 million per policy year for claims that exceed $1.5 million. Because we bear the financial responsibility for claims up to the levels noted above, such claims, which are the primary component of our workers’ compensation costs, are recorded in the period incurred. Workers’ compensation insurance includes ongoing health care and indemnity coverage whereby claims are paid over numerous years following the date of injury. Accordingly, the accrual of related incurred costs in each reporting period includes estimates, which take into account the ongoing development of claims and therefore requires a significant level of judgment. We utilize a third-party actuary to estimate our loss development rate, which is primarily based upon the nature of WSEEs job responsibilities, the location of WSEEs, the historical frequency and severity of workers’ compensation claims, and an estimate of future cost trends. Each reporting period, changes in the actuarial assumptions resulting from changes in actual claims experience and other trends are incorporated into our workers’ compensation claims cost estimates. During the nine months ended September 30, 2020 and 2019, we reduced accrued workers’ compensation costs by $32.4 million and $26.0 million, respectively, for changes in estimated losses related to prior reporting periods. Workers’ compensation cost estimates are discounted to present value at a rate based upon the U.S. Treasury rates that correspond with the weighted average estimated claim payout period (the average discount rate utilized in the 2020 period was 0.7% and in the 2019 period was 2.0%) and are accreted over the estimated claim payment period and included as a component of direct costs in our Consolidated Statements of Operations. The following table provides the activity and balances related to incurred but not paid workers’ compensation claims: Nine Months Ended September 30, (in thousands) 2020 2019 Beginning balance, January 1, $ 242,904 $ 229,639 Accrued claims 33,397 44,334 Present value discount, net of accretion (500) (3,664) Paid claims (34,289) (34,669) Ending balance $ 241,512 $ 235,640 Current portion of accrued claims $ 45,265 $ 45,250 Long-term portion of accrued claims 196,247 190,390 Total accrued claims $ 241,512 $ 235,640 The current portion of accrued workers’ compensation costs on our Condensed Consolidated Balance Sheets at September 30, 2020 includes $2.7 million of workers’ compensation administrative fees. As of September 30, 2020 and 2019, the undiscounted accrued workers’ compensation costs were $259.4 million and $255.3 million, respectively. At the beginning of each policy period, the workers’ compensation insurance carrier establishes monthly funding requirements comprised of premium costs and funds to be set aside for payment of future claims (“claim funds”). The level of claim funds is primarily based upon anticipated WSEE payroll levels and expected workers’ compensation loss rates, as determined by the insurance carrier. Monies funded into the program for incurred claims expected to be paid within one year are recorded as restricted cash, a short-term asset, while the remainder of claim funds are included in deposits – workers’ compensation, a long-term asset in our Condensed Consolidated Balance Sheets. During the first nine months of 2020 and 2019, we received $24.8 million and $16.7 million, respectively, for the return of excess claim funds related to the workers’ compensation program, which resulted in a decrease to deposits – workers’ compensation. At September 30, 2020, we had restricted cash of $45.3 million and deposits – workers’ compensation of $181.6 million. Our estimate of incurred claim costs expected to be paid within one year is included in short-term liabilities, while our estimate of incurred claim costs expected to be paid beyond one year is included in long-term liabilities on our Condensed Consolidated Balance Sheets. Revenue and Direct Cost Recognition We enter into contracts with our customers for human resources services based on a stated rate and price in the contract. Our contracts generally have a term of 12 months, but are cancellable at any time by either party with 30-days’ notice. Our performance obligations are satisfied as services are rendered each month. The term between invoicing and when our performance obligations are satisfied is not significant. Payment terms are typically due concurrently with the invoicing of our PEO services. We do not have significant financing components or significant payment terms. Our revenue is generally recognized ratably over the payroll period as WSEEs perform their service at the client worksite. Customers are invoiced concurrently with each periodic payroll of its WSEEs. Revenues that have been recognized but unbilled of $520.9 million and $448.1 million at September 30, 2020 and December 31, 2019, respectively, are included in accounts receivable, net on our Condensed Consolidated Balance Sheets. Pursuant to the “practical expedients” provided under Accounting Standards Update (“ASU”) No 2014-09, we expense sales commissions when incurred because the terms of our contracts generally are cancellable by either party with a 30-day notice. These costs are recorded in commissions in our Consolidated Statements of Operations. Our revenue for our PEO HR Outsourcing solutions by geographic region and for our other products and services offerings are as follows: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2020 2019 % Change 2020 2019 % Change Northeast $ 278,712 $ 271,839 2.5 % $ 896,113 $ 853,263 5.0 % Southeast 121,439 122,992 (1.3) % 379,614 373,044 1.8 % Central 182,245 180,602 0.9 % 570,559 555,797 2.7 % Southwest 217,527 242,200 (10.2) % 712,185 756,495 (5.9) % West 195,412 212,618 (8.1) % 634,533 661,460 (4.1) % 995,335 1,030,251 (3.4) % 3,193,004 3,200,059 (0.2) % Other revenue 12,485 13,137 (5.0) % 37,665 39,655 (5.0) % Total revenue $ 1,007,820 $ 1,043,388 (3.4) % $ 3,230,669 $ 3,239,714 (0.3) % Recently Adopted Accounting Standards We adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) effective January 1, 2020 with no material impact. Under this standard, we estimate our reserves using information about past events, current conditions and risk characteristics of our customer when assessing risk associated with the collectability of accounts receivables, including unbilled accounts receivables. We require clients to pay invoices for service fees not later than the same day as the applicable payroll date. As such, we generally do not require collateral. As of September 30, 2020, allowance for bad debts was immaterial.

Cash, Cash Equivalents and Mark

Cash, Cash Equivalents and Marketable Securities (Notes)	9 Months Ended
	Sep. 30, 2020
Cash, Cash Equivalents and Marketable Securities [Abstract]
Cash, Cash Equivalents and Marketable Securities	3. Cash, Cash Equivalents and Marketable Securities The following table summarizes our cash and investments in cash equivalents and marketable securities held by investment managers and overnight investments: September 30, 2020 December 31, 2019 (in thousands) Cash & Cash Equivalents Marketable Securities Total Cash & Cash Equivalents Marketable Securities Total Overnight holdings $ 314,952 $ — $ 314,952 $ 349,857 $ — $ 349,857 Investment holdings 38,867 33,994 72,861 13,218 34,728 47,946 Cash in demand accounts 28,259 — 28,259 36,521 — 36,521 Outstanding checks (9,722) — (9,722) (32,254) — (32,254) Total $ 372,356 $ 33,994 $ 406,350 $ 367,342 $ 34,728 $ 402,070 Our cash and overnight holdings fluctuate based on the timing of clients’ payroll processing cycles. Our cash, cash equivalents and marketable securities at September 30, 2020 and December 31, 2019 included $147.1 million and $234.6 million, respectively, of funds associated with federal and state income tax withholdings, employment taxes and other payroll deductions, as well as $46.5 million and $59.6 million, respectively, in client prepayments.

Fair Value Measurements Fair Va

Fair Value Measurements Fair Value Measurements (Notes)	9 Months Ended
	Sep. 30, 2020
Fair Value Disclosures [Abstract]
Fair Value Disclosures [Text Block]	4. Fair Value Measurements We account for our financial assets in accordance with Accounting Standard Codification 820, Fair Value Measurement. This standard defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. The fair value measurement disclosures are grouped into three levels based on valuation factors: • Level 1 - quoted prices in active markets using identical assets • Level 2 - significant other observable inputs, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other observable inputs • Level 3 - significant unobservable inputs Fair Value of Instruments Measured and Recognized at Fair Value The following table summarizes the levels of fair value measurements of our financial assets: September 30, 2020 December 31, 2019 (in thousands) Total Level 1 Level 2 Total Level 1 Level 2 Money market funds $ 353,819 $ 353,819 $ — $ 363,075 $ 363,075 $ — U.S. Treasury bills 10,411 10,411 — 34,728 34,728 — Municipal bonds 23,583 — 23,583 — — — Total $ 387,813 $ 364,230 $ 23,583 $ 397,803 $ 397,803 $ — The municipal bond securities valued as Level 2 are primarily pre-refunded municipal bonds that are secured by escrow funds containing U.S. government securities. Our valuation techniques used to measure fair value for these securities during the period consisted primarily of third-party pricing services that utilized actual market data such as trades of comparable bond issues, broker/dealer quotations for the same or similar investments in active markets and other observable inputs. The following is a summary of our available-for-sale marketable securities: (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value September 30, 2020 U.S. Treasury bills $ 10,410 $ 1 $ — $ 10,411 Municipal bonds 23,554 29 — 23,583 Total $ 33,964 $ 30 $ — $ 33,994 December 31, 2019 U.S. Treasury bills $ 34,716 $ 13 $ (1) $ 34,728 Total $ 34,716 $ 13 $ (1) $ 34,728 As of September 30, 2020, the contractual maturities of our marketable securities were as follows: (in thousands) Amortized Cost Estimated Fair Value Less than one year $ 33,964 $ 33,994 One to five years — — Total $ 33,964 $ 33,994 Fair Value of Other Financial Instruments The carrying amounts of cash, cash equivalents, restricted cash, accounts receivable, deposits and accounts payable approximate their fair values due to the short-term maturities of these instruments. As of September 30, 2020, the carrying value of borrowings under our revolving credit facility approximates fair value and was classified as Level 2 in the fair value hierarchy. Please read Note 5, “Long-Term Debt,” for additional information.

Long-term Debt (Notes)

Long-term Debt (Notes)	9 Months Ended
	Sep. 30, 2020
Debt Disclosure [Abstract]
Revolving Credit Facility	5. Long-Term Debt We have a revolving credit facility (the “Facility”) with borrowing capacity of up to $500 million. The Facility may be further increased to $550 million based on the terms and subject to the conditions set forth in the agreement relating to the Facility (the “Credit Agreement”). The Facility is available for working capital and general corporate purposes, including acquisitions, stock repurchases and issuances of letters of credit. Our obligations under the Facility are secured by 65% of the stock of our captive insurance subsidiary and are guaranteed by all of our domestic subsidiaries. At September 30, 2020, our outstanding balance on the Facility was $369.4 million, and we had an outstanding $1.0 million letter of credit issued under the Facility, resulting in an available borrowing capacity of $129.6 million. The Facility matures on September 13, 2024. Borrowings under the Facility bear interest at an annual rate equal to an alternate base rate or LIBOR, at our option, plus an applicable margin. Depending on our leverage ratio, the applicable margin varies (1) in the case of LIBOR loans, from 1.50% to 2.25% and (2) in the case of alternate base rate loans, from 0.00% to 0.50%. The alternate base rate is the highest of (1) the prime rate most recently published in The Wall Street Journal, (2) the federal funds rate plus 0.50% and (3) the 30-day LIBOR rate plus 2.00%. We also pay an unused commitment fee on the average daily unused portion of the Facility at a rate of 0.25% per year. The average interest rate for the nine month period ended September 30, 2020 was 2.52%. Interest expense and unused commitment fees are recorded in other income (expense). Upon the discontinuation of LIBOR, the Facility provides that we and the agent will negotiate in good faith to amend the agreement to address such discontinuation and to place the parties in substantially the same economic position. The Facility contains both affirmative and negative covenants that we believe are customary for arrangements of this nature. Covenants include, but are not limited to, limitations on our ability to incur additional indebtedness, sell material assets, retire, redeem or otherwise reacquire our capital stock, acquire the capital stock or assets of another business, make investments and pay dividends. In addition, the Credit Agreement requires us to comply with financial covenants limiting our total funded debt, minimum interest coverage ratio and maximum leverage ratio. We were in compliance with all financial covenants under the Credit Agreement at September 30, 2020.

Stockholders' Equity (Notes)

Stockholders' Equity (Notes)	9 Months Ended
	Sep. 30, 2020
Stockholders' Equity Note [Abstract]
Stockholders Equity	6. Stockholders' Equity During the first nine months of 2020, we repurchased or withheld an aggregate of 1,336,884 shares of our common stock, as described below. Repurchase Program Our Board of Directors (the “Board”) has authorized a program to repurchase shares of our outstanding common stock (“Repurchase Program”). The purchases are to be made from time to time in the open market or directly from stockholders at prevailing market prices based on market conditions and other factors. During the nine months ended September 30, 2020, 1,186,000 shares were repurchased under the Repurchase Program. As of September 30, 2020, we were authorized to repurchase an additional 227,833 shares under the Repurchase Program. Withheld Shares During the nine months ended September 30, 2020, we withheld 150,884 shares to satisfy tax withholding obligations for the vesting of long-term incentive and restricted stock awards. Dividends The Board declared quarterly dividends as follows: (amounts per share) 2020 2019 First quarter $ 0.40 $ 0.30 Second quarter 0.40 0.30 Third quarter 0.40 0.30 During the nine months ended September 30, 2020 and 2019, we paid dividends totaling $46.5 million and $36.8 million, respectively. Rights Plan

incentive Plans Incentive Plans

incentive Plans Incentive Plans (Notes)	9 Months Ended
	Sep. 30, 2020
Share-based Payment Arrangement [Abstract]
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	7. Incentive Plans The Insperity, Inc. 2001 Incentive Plan, as amended, and the 2012 Incentive Plan, as amended (collectively, the “Incentive Plans”) provide for options and other stock-based awards that have been and may be granted to our eligible employees and non-employee directors. The 2012 Incentive Plan is currently the only plan under which new stock-based awards may be granted. Beginning with stock-based awards granted in 2020, employees who attain a minimum of age 62 and have provided 15 years or more of continuous service may continue to vest in awards following a qualifying retirement as defined under the 2012 Incentive Plan, as though he or she were still an employee, provided the grant date of the award is six months or more before the employees last day of employment. For a termination following a qualifying retirement, time-vested awards will continue to vest in the normal course. For a termination following a qualifying retirement, performance-based awards with completed or in-process performance periods are adjusted for achievement of the performance criteria, prorated through the date of termination and paid in the normal course, while performance-based awards for performance periods that have not started are forfeited. Stock-based compensation expense related to time-vested and performance-based awards is accelerated for employees who meet the requirements for continued vesting.

Net Income Per Share (Notes)

Net Income Per Share (Notes)	9 Months Ended
	Sep. 30, 2020
Earnings Per Share [Abstract]
Net Income per Share	8. Net Income Per Share We utilize the two-class method to compute net income per share. The two-class method allocates a portion of net income to participating securities, which includes unvested awards of share-based payments with non-forfeitable rights to receive dividends. Net income allocated to unvested share-based payments is excluded from net income allocated to common shares. Any undistributed losses resulting from dividends exceeding net income are not allocated to participating securities. Basic net income per share is computed by dividing net income allocated to common shares by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing net income allocated to common shares by the weighted average number of common shares outstanding during the period, plus the dilutive effect of outstanding stock options. The following table summarizes the net income allocated to common shares and the basic and diluted shares used in the net income per share computations: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2020 2019 2020 2019 Net income $ 20,009 $ 25,859 $ 133,952 $ 130,704 Less distributed and undistributed earnings allocated to participating securities (104) (284) (792) (1,546) Net income allocated to common shares $ 19,905 $ 25,575 $ 133,160 $ 129,158 Weighted average common shares outstanding 38,507 40,168 38,625 40,481 Incremental shares from assumed time-vested and performance-based RSU awards and conversions of common stock options 234 149 193 143 Adjusted weighted average common shares outstanding 38,741 40,317 38,818 40,624

Commitments and Contingencies (

Commitments and Contingencies (Notes)	9 Months Ended
	Sep. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	9. Commitments and Contingencies Worksite Employee 401(k) Retirement Plan Class Action Litigation In December 2015, a class action lawsuit was filed against us and a third-party who served as the discretionary trustee (the “Co-Defendant”) of the Insperity 401(k) retirement plan that is available to eligible worksite employees (the “Plan”) in the United States District Court for the Northern District of Georgia, Atlanta Division, on behalf of Plan participants. The suit generally alleges the third-party discretionary trustee of the Plan and Insperity breached their fiduciary duties to plan participants by selecting an Insperity subsidiary to serve as the recordkeeper for the Plan, by causing participants in the Plan to pay excessive recordkeeping fees to the Insperity subsidiary, by failing to monitor other fiduciaries, and by making imprudent investment choices. The court certified a class defined as “all participants and beneficiaries of the Insperity 401(k) Plan from December 22, 2009 through September 30, 2017.” The court dismissed the breach of fiduciary duty claims relating to the selection of an Insperity subsidiary to serve as the recordkeeper of the Plan. On March 28, 2019, the court partially granted Insperity’s motion for summary judgment, resulting in the dismissal of the claims concerning allegations of excessive recordkeeping fees. The court denied the plaintiffs’ request for a jury trial and set a bench trial, which was held from March 2, 2020 to March 13, 2020. At trial, the plaintiffs alleged damages up to approximately $146 million against all defendants. All parties filed proposed findings of fact and conclusions of law on June 15, 2020. On September 18, 2020, the plaintiffs and Co-Defendant informed the court that they reached an agreement in principle to settle the entire case, including a full and final release of all claims against Insperity. Insperity did not participate in the settlement discussions and will make no financial contribution to the settlement. In connection with the settlement, the plaintiffs and Co-Defendant filed a motion to extend the class period to March 31, 2019, which the court granted. The court has also granted preliminary approval of the settlement and has set the final approval hearing on March 5, 2021. As a result of the uncertainty regarding the outcome of this matter and the subsequent settlement agreement that, if approved by the court, will end the case with no financial contribution from Insperity, no provision has been made in the accompanying Consolidated Financial Statements. Securities Class Action Lawsuit In July 2020, a federal securities class action was filed against us and certain of our officers in the United States District Court for the Southern District of New York. The name of the case is Building Trades Pension Fund of Western Pennsylvania v. Insperity, Inc., et al., Case No. 1:20-cv-05635-NRB. On October 23, 2020, the court issued an order appointing Oakland County Employees’ Retirement System and Oakland County Voluntary Employees’ Beneficiary Association Trust as lead plaintiff. The complaint alleges that we made materially false and misleading statements regarding our business and operations in violation of the federal securities laws and seeks unspecified damages, the payment of reasonable attorneys’ fees, expert fees and other costs, and such other relief that may be deemed proper. We believe the allegations in the action are without merit, and we intend to vigorously defend this litigation. As a result of uncertainty regarding the outcome of this matter, no provision has been made in the accompanying Consolidated Financial Statements. Other Litigation We are a defendant in various other lawsuits and claims arising in the normal course of business. Management believes it has valid defenses in these cases and is defending them vigorously. While the results of litigation cannot be predicted with certainty, management believes the final outcome of such litigation will not have a material adverse effect on our financial position or results of operations.

Accounting Policies (Policies)

Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Health Insurance Costs	Health Insurance Costs We provide group health insurance coverage to our WSEEs in our PEO HR Outsourcing solutions through a national network of carriers, including UnitedHealthcare (“United”), UnitedHealthcare of California, Kaiser Permanente, Blue Shield of California, HMSA BlueCross BlueShield of Hawaii, and Tufts, all of which provide fully insured policies or service contracts. The policy with United provides approximately 87% of our health insurance coverage. While the policy with United is a fully-insured plan, as a result of certain contractual terms, we have accounted for this plan since its inception using a partially self-funded insurance accounting model. Effective January 1, 2020, under the amended agreement with United, we no longer have financial responsibilities for a participant’s annual claim costs that exceed $1 million. Accordingly, we record the costs of the United plan, including an estimate of the incurred claims, taxes and administrative fees (collectively the “Plan Costs”) as benefits expense, which is a component of direct costs, in our Consolidated Statements of Operations. The estimated incurred claims are based upon: (1) the level of claims processed during the quarter; (2) estimated completion rates based upon recent claim development patterns under the plan; and (3) the number of participants in the plan, including both active and COBRA enrollees. Each reporting period, changes in the estimated ultimate costs resulting from claim trends, plan design and migration, participant demographics and other factors are incorporated into the benefits costs, which requires a significant level of judgment. Additionally, since the plan’s inception, under the terms of the contract, United establishes cash funding rates 90 days in advance of the beginning of a reporting quarter. If the Plan Costs for a reporting quarter are greater than the premiums paid and owed to United, a deficit in the plan would be incurred and a liability for the excess costs would be accrued in our Condensed Consolidated Balance Sheets. On the other hand, if the Plan Costs for the reporting quarter are less than the premiums paid and owed to United, a surplus in the plan would be incurred and we would record an asset for the excess premiums in our Condensed Consolidated Balance Sheets. The terms of the arrangement require us to maintain an accumulated cash surplus in the plan of $9.0 million, which is reported as long-term prepaid insurance. In addition, United requires a deposit equal to approximately one day of claims funding activity, which was $6.5 million at September 30, 2020, and is included in deposits - health insurance as a long-term asset on our Condensed Consolidated Balance Sheets. As of September 30, 2020, Plan Costs were less than the net premiums paid and owed to United by $32.8 million. As this amount is in excess of the agreed-upon $9.0 million surplus maintenance level, the $23.8 million difference is included in prepaid insurance, a current asset, in our Condensed Consolidated Balance Sheets. The premiums, including the additional quarterly premiums, owed to United at September 30, 2020 were $38.3 million, which is included in accrued health insurance costs, a current liability in our Condensed Consolidated Balance Sheets. Our benefits costs incurred in the first nine months of 2020 included a reduction of $1.9 million for changes in estimated run-off related to prior periods. Our benefits costs incurred in the first nine months of 2019 included a charge of $2.9 million for changes in estimated run-off related to prior periods.
Workers' Compensation Costs	Workers’ Compensation Costs Our workers’ compensation coverage for our WSEEs in our PEO HR Outsourcing solutions has been provided through an arrangement with the Chubb Group of Insurance Companies or its predecessors (the “Chubb Program”) since 2007. The Chubb Program is fully insured in that Chubb has the responsibility to pay all claims incurred under the policy regardless of whether we satisfy our responsibilities. Under the Chubb Program for claims incurred on or before September 30, 2019, we have financial responsibility to Chubb for the first $1 million layer of claims per occurrence and, for claims over $1 million, up to a maximum aggregate amount of $6 million per policy year for claims that exceed $1 million. Chubb bears the financial responsibility for all claims in excess of these levels. Effective for claims incurred on or after October 1, 2019, we have financial responsibility to Chubb for the first $1.5 million layer of claims per occurrence and, for claims over $1.5 million, up to a maximum aggregate amount of $6 million per policy year for claims that exceed $1.5 million. Because we bear the financial responsibility for claims up to the levels noted above, such claims, which are the primary component of our workers’ compensation costs, are recorded in the period incurred. Workers’ compensation insurance includes ongoing health care and indemnity coverage whereby claims are paid over numerous years following the date of injury. Accordingly, the accrual of related incurred costs in each reporting period includes estimates, which take into account the ongoing development of claims and therefore requires a significant level of judgment. We utilize a third-party actuary to estimate our loss development rate, which is primarily based upon the nature of WSEEs job responsibilities, the location of WSEEs, the historical frequency and severity of workers’ compensation claims, and an estimate of future cost trends. Each reporting period, changes in the actuarial assumptions resulting from changes in actual claims experience and other trends are incorporated into our workers’ compensation claims cost estimates. During the nine months ended September 30, 2020 and 2019, we reduced accrued workers’ compensation costs by $32.4 million and $26.0 million, respectively, for changes in estimated losses related to prior reporting periods. Workers’ compensation cost estimates are discounted to present value at a rate based upon the U.S. Treasury rates that correspond with the weighted average estimated claim payout period (the average discount rate utilized in the 2020 period was 0.7% and in the 2019 period was 2.0%) and are accreted over the estimated claim payment period and included as a component of direct costs in our Consolidated Statements of Operations. The following table provides the activity and balances related to incurred but not paid workers’ compensation claims: Nine Months Ended September 30, (in thousands) 2020 2019 Beginning balance, January 1, $ 242,904 $ 229,639 Accrued claims 33,397 44,334 Present value discount, net of accretion (500) (3,664) Paid claims (34,289) (34,669) Ending balance $ 241,512 $ 235,640 Current portion of accrued claims $ 45,265 $ 45,250 Long-term portion of accrued claims 196,247 190,390 Total accrued claims $ 241,512 $ 235,640 The current portion of accrued workers’ compensation costs on our Condensed Consolidated Balance Sheets at September 30, 2020 includes $2.7 million of workers’ compensation administrative fees. As of September 30, 2020 and 2019, the undiscounted accrued workers’ compensation costs were $259.4 million and $255.3 million, respectively. At the beginning of each policy period, the workers’ compensation insurance carrier establishes monthly funding requirements comprised of premium costs and funds to be set aside for payment of future claims (“claim funds”). The level of claim funds is primarily based upon anticipated WSEE payroll levels and expected workers’ compensation loss rates, as determined by the insurance carrier. Monies funded into the program for incurred claims expected to be paid within one year are recorded as restricted cash, a short-term asset, while the remainder of claim funds are included in deposits – workers’ compensation, a long-term asset in our Condensed Consolidated Balance Sheets. During the first nine months of 2020 and 2019, we received $24.8 million and $16.7 million, respectively, for the return of excess claim funds related to the workers’ compensation program, which resulted in a decrease to deposits – workers’ compensation. At September 30, 2020, we had restricted cash of $45.3 million and deposits – workers’ compensation of $181.6 million. Our estimate of incurred claim costs expected to be paid within one year is included in short-term liabilities, while our estimate of incurred claim costs expected to be paid beyond one year is included in long-term liabilities on our Condensed Consolidated Balance Sheets.
Revenue Recognition	Revenue and Direct Cost Recognition We enter into contracts with our customers for human resources services based on a stated rate and price in the contract. Our contracts generally have a term of 12 months, but are cancellable at any time by either party with 30-days’ notice. Our performance obligations are satisfied as services are rendered each month. The term between invoicing and when our performance obligations are satisfied is not significant. Payment terms are typically due concurrently with the invoicing of our PEO services. We do not have significant financing components or significant payment terms. Our revenue is generally recognized ratably over the payroll period as WSEEs perform their service at the client worksite. Customers are invoiced concurrently with each periodic payroll of its WSEEs. Revenues that have been recognized but unbilled of $520.9 million and $448.1 million at September 30, 2020 and December 31, 2019, respectively, are included in accounts receivable, net on our Condensed Consolidated Balance Sheets. Pursuant to the “practical expedients” provided under Accounting Standards Update (“ASU”) No 2014-09, we expense sales commissions when incurred because the terms of our contracts generally are cancellable by either party with a 30-day notice. These costs are recorded in commissions in our Consolidated Statements of Operations. Our revenue for our PEO HR Outsourcing solutions by geographic region and for our other products and services offerings are as follows: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2020 2019 % Change 2020 2019 % Change Northeast $ 278,712 $ 271,839 2.5 % $ 896,113 $ 853,263 5.0 % Southeast 121,439 122,992 (1.3) % 379,614 373,044 1.8 % Central 182,245 180,602 0.9 % 570,559 555,797 2.7 % Southwest 217,527 242,200 (10.2) % 712,185 756,495 (5.9) % West 195,412 212,618 (8.1) % 634,533 661,460 (4.1) % 995,335 1,030,251 (3.4) % 3,193,004 3,200,059 (0.2) % Other revenue 12,485 13,137 (5.0) % 37,665 39,655 (5.0) % Total revenue $ 1,007,820 $ 1,043,388 (3.4) % $ 3,230,669 $ 3,239,714 (0.3) %
New Accounting Pronouncement or Change in Accounting Principle, Description	Recently Adopted Accounting StandardsWe adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) effective January 1, 2020 with no material impact. Under this standard, we estimate our reserves using information about past events, current conditions and risk characteristics of our customer when assessing risk associated with the collectability of accounts receivables, including unbilled accounts receivables. We require clients to pay invoices for service fees not later than the same day as the applicable payroll date. As such, we generally do not require collateral. As of September 30, 2020, allowance for bad debts was immaterial.

Fair Value Measurements Fair Vl

Fair Value Measurements Fair Vlue Measurements (Policies)	9 Months Ended
	Sep. 30, 2020
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments, Policy [Policy Text Block]	We account for our financial assets in accordance with Accounting Standard Codification 820, Fair Value Measurement. This standard defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. The fair value measurement disclosures are grouped into three levels based on valuation factors: • Level 1 - quoted prices in active markets using identical assets • Level 2 - significant other observable inputs, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other observable inputs • Level 3 - significant unobservable inputs

Accounting Policies (Tables)

Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Activity and balances related to incurred but not paid workers' compensation claims	The following table provides the activity and balances related to incurred but not paid workers’ compensation claims: Nine Months Ended September 30, (in thousands) 2020 2019 Beginning balance, January 1, $ 242,904 $ 229,639 Accrued claims 33,397 44,334 Present value discount, net of accretion (500) (3,664) Paid claims (34,289) (34,669) Ending balance $ 241,512 $ 235,640 Current portion of accrued claims $ 45,265 $ 45,250 Long-term portion of accrued claims 196,247 190,390 Total accrued claims $ 241,512 $ 235,640
Disaggregation of Revenue [Table Text Block]	Revenue and Direct Cost Recognition We enter into contracts with our customers for human resources services based on a stated rate and price in the contract. Our contracts generally have a term of 12 months, but are cancellable at any time by either party with 30-days’ notice. Our performance obligations are satisfied as services are rendered each month. The term between invoicing and when our performance obligations are satisfied is not significant. Payment terms are typically due concurrently with the invoicing of our PEO services. We do not have significant financing components or significant payment terms. Our revenue is generally recognized ratably over the payroll period as WSEEs perform their service at the client worksite. Customers are invoiced concurrently with each periodic payroll of its WSEEs. Revenues that have been recognized but unbilled of $520.9 million and $448.1 million at September 30, 2020 and December 31, 2019, respectively, are included in accounts receivable, net on our Condensed Consolidated Balance Sheets. Pursuant to the “practical expedients” provided under Accounting Standards Update (“ASU”) No 2014-09, we expense sales commissions when incurred because the terms of our contracts generally are cancellable by either party with a 30-day notice. These costs are recorded in commissions in our Consolidated Statements of Operations. Our revenue for our PEO HR Outsourcing solutions by geographic region and for our other products and services offerings are as follows: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2020 2019 % Change 2020 2019 % Change Northeast $ 278,712 $ 271,839 2.5 % $ 896,113 $ 853,263 5.0 % Southeast 121,439 122,992 (1.3) % 379,614 373,044 1.8 % Central 182,245 180,602 0.9 % 570,559 555,797 2.7 % Southwest 217,527 242,200 (10.2) % 712,185 756,495 (5.9) % West 195,412 212,618 (8.1) % 634,533 661,460 (4.1) % 995,335 1,030,251 (3.4) % 3,193,004 3,200,059 (0.2) % Other revenue 12,485 13,137 (5.0) % 37,665 39,655 (5.0) % Total revenue $ 1,007,820 $ 1,043,388 (3.4) % $ 3,230,669 $ 3,239,714 (0.3) %

Cash, Cash Equivalents and Ma_2

Cash, Cash Equivalents and Marketable Securities (Tables)	9 Months Ended
	Sep. 30, 2020
Cash, Cash Equivalents and Marketable Securities [Abstract]
Summary of investments in cash, cash equivalents and marketable securities	The following table summarizes our cash and investments in cash equivalents and marketable securities held by investment managers and overnight investments: September 30, 2020 December 31, 2019 (in thousands) Cash & Cash Equivalents Marketable Securities Total Cash & Cash Equivalents Marketable Securities Total Overnight holdings $ 314,952 $ — $ 314,952 $ 349,857 $ — $ 349,857 Investment holdings 38,867 33,994 72,861 13,218 34,728 47,946 Cash in demand accounts 28,259 — 28,259 36,521 — 36,521 Outstanding checks (9,722) — (9,722) (32,254) — (32,254) Total $ 372,356 $ 33,994 $ 406,350 $ 367,342 $ 34,728 $ 402,070

Fair Value Measurements Fair _2

Fair Value Measurements Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2020
Fair Value Disclosures [Abstract]
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Table Text Block]	The following table summarizes the levels of fair value measurements of our financial assets: September 30, 2020 December 31, 2019 (in thousands) Total Level 1 Level 2 Total Level 1 Level 2 Money market funds $ 353,819 $ 353,819 $ — $ 363,075 $ 363,075 $ — U.S. Treasury bills 10,411 10,411 — 34,728 34,728 — Municipal bonds 23,583 — 23,583 — — — Total $ 387,813 $ 364,230 $ 23,583 $ 397,803 $ 397,803 $ —
Available-for-sale Securities [Table Text Block]	The following is a summary of our available-for-sale marketable securities: (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value September 30, 2020 U.S. Treasury bills $ 10,410 $ 1 $ — $ 10,411 Municipal bonds 23,554 29 — 23,583 Total $ 33,964 $ 30 $ — $ 33,994 December 31, 2019 U.S. Treasury bills $ 34,716 $ 13 $ (1) $ 34,728 Total $ 34,716 $ 13 $ (1) $ 34,728
Investments Classified by Contractual Maturity Date [Table Text Block]	As of September 30, 2020, the contractual maturities of our marketable securities were as follows: (in thousands) Amortized Cost Estimated Fair Value Less than one year $ 33,964 $ 33,994 One to five years — — Total $ 33,964 $ 33,994

Stockholders' Equity Stockholde

Stockholders' Equity Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2020
Stockholders' Equity Attributable to Parent [Abstract]
Quarterly dividends declared [Table Text Block]	The Board declared quarterly dividends as follows: (amounts per share) 2020 2019 First quarter $ 0.40 $ 0.30 Second quarter 0.40 0.30 Third quarter 0.40 0.30

Net Income per Share (Tables)

Net Income per Share (Tables)	9 Months Ended
	Sep. 30, 2020
Earnings Per Share [Abstract]
Summary of the net income allocated to common shares and the basic and diluted shares used in the net income per share computations	The following table summarizes the net income allocated to common shares and the basic and diluted shares used in the net income per share computations: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2020 2019 2020 2019 Net income $ 20,009 $ 25,859 $ 133,952 $ 130,704 Less distributed and undistributed earnings allocated to participating securities (104) (284) (792) (1,546) Net income allocated to common shares $ 19,905 $ 25,575 $ 133,160 $ 129,158 Weighted average common shares outstanding 38,507 40,168 38,625 40,481 Incremental shares from assumed time-vested and performance-based RSU awards and conversions of common stock options 234 149 193 143 Adjusted weighted average common shares outstanding 38,741 40,317 38,818 40,624

Accounting Policies (Details)

Accounting Policies (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Oct. 01, 2019	Dec. 31, 2018
Health Insurance Costs [Abstract]
Percentage of our health insurance coverage provided by United	87.00%		87.00%
Number of days in advance of the beginning of a reporting quarter United establishes cash funding rates			90 days
Required accumulated cash surplus	$ 9,000,000		$ 9,000,000		$ 9,000,000
Required deposit equal to approximately one day of claims funding activity	6,500,000		6,500,000
Amount which plan costs were less than the net premiums paid and owed	32,800,000		32,800,000
Prepaid health insurance, current	23,800,000		23,800,000
Premiums owed to United	38,300,000		38,300,000
Benefits costs incurred (reduced) related to run-off	(1,900,000)	$ 2,900,000	(1,900,000)	$ 2,900,000
Workers' Compensation Costs [Abstract]
Company's maximum economic burden for the first layer of claims per occurrence	1,000,000		1,000,000			$ 1,500,000
Company's maximum aggregate economic burden for claims in excess of 1 million per policy year	6,000,000		6,000,000			$ 6,000,000
Decrease Increase in accrued workers' compensation costs for changes in estimated losses			(32,400,000)	(26,000,000)
Incurred but not paid workers compensation liabilities [Abstract]
Liability for Unpaid Claims and Claims Adjustment Expense, Adjustments					242,904,000		$ 229,639,000
Workers' Compensation Expense			33,397,000	44,334,000
Present value discount, net of accretion			(500,000)	(3,664,000)
Paid claims			(34,289,000)	(34,669,000)
WorkersCompensationLiabilityNetOfAdminFeesCurrent	45,265,000	45,250,000	45,265,000	45,250,000
Long-term portion of accrued claims	196,247,000	190,390,000	196,247,000	190,390,000	193,609,000
Ending balance	241,512,000	235,640,000	241,512,000	235,640,000
Workers compensation administrative fees accrued	2,700,000		2,700,000
Undiscounted accrued workers' compensation costs			$ 259,400,000	255,300,000
Time period incurred claims expected to be paid recorded as restricted cash			1 year
Time period incurred claims expected to be paid, included in deposits, a long-term asset			Greater than 1 year
Restricted cash	45,265,000	45,251,000	$ 45,265,000	45,251,000	49,295,000		42,227,000
Deposits workers compensation	181,634,000	170,032,000	$ 181,634,000	170,032,000	175,913,000		$ 166,474,000
Time period estimate of incurred claim costs to be paid included in short-term liabilities			1 year
Time period incurred claims expected to be paid, included in long-term liabilities			Greater than 1 year
ReturnofExcessClaimFunds			$ 24,800,000	16,700,000
Revenue from Contract with Customer [Abstract]
Unbilled	520,900,000		520,900,000		$ 448,100,000
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	1,007,820,000	1,043,388,000	3,230,669,000	3,239,714,000
Northeast [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	278,712,000	271,839,000	896,113,000	853,263,000
Southeast [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	121,439,000	122,992,000	379,614,000	373,044,000
Central [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	182,245,000	180,602,000	570,559,000	555,797,000
Southwest [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	217,527,000	242,200,000	712,185,000	756,495,000
West [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	195,412,000	212,618,000	634,533,000	661,460,000
Other Revenues [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 12,485,000	$ 13,137,000	$ 37,665,000	$ 39,655,000

Cash, Cash Equivalents and Ma_3

Cash, Cash Equivalents and Marketable Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Cash and Cash Equivalents [Line Items]
Overnight Holdings	$ 314,952	$ 349,857
Short-term Investments	72,861	47,946
Cash	28,259	36,521
Drafts Payable	(9,722)	(32,254)
Cash, Cash Equivalents, and Short-term Investments	406,350	402,070
Payroll Withholdings Included in Cash Balance	147,100	234,600
Client Prepayments Included in Cash Balance	(46,500)	(59,600)
Money Market Funds [Member]
Cash and Cash Equivalents [Line Items]
Overnight Holdings	0	0
Short-term Investments	33,994	34,728
Cash	0	0
Drafts Payable	0	0
Cash, Cash Equivalents, and Short-term Investments	33,994	34,728
Cash and Cash Equivalents [Member]
Cash and Cash Equivalents [Line Items]
Overnight Holdings	314,952	349,857
Short-term Investments	38,867	13,218
Cash	28,259	36,521
Drafts Payable	(9,722)	(32,254)
Cash, Cash Equivalents, and Short-term Investments	$ 372,356	$ 367,342

Fair Value Measurements Fair _3

Fair Value Measurements Fair Value Measurements (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 31, 2020	Sep. 30, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds		$ 353,819	$ 363,075
US Government Securities, at Carrying Value		10,411	34,728
Municipal bonds		23,583	0
Total		387,813	397,803
Available-for-sale Securities, Amortized Cost Basis		33,964	34,716
Available-for-sale Securities, Gross Unrealized Gain	$ 13	30
Available-for-sale Securities, Gross Unrealized Loss	(1)	0
Available-for-sale Securities		33,994	34,728
Debt Securities, Available-for-sale, Amortized Cost, Fiscal Year Maturity [Abstract]
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, within One Year, Amortized Cost		33,964
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after One Through Five Years, Amortized Cost		0
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract]
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, within One Year, Fair Value		33,994
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after One Through Five Years, Fair Value		0
US Treasury Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Amortized Cost Basis		10,410	34,716
Available-for-sale Securities, Gross Unrealized Gain	13	1
Available-for-sale Securities, Gross Unrealized Loss	$ (1)	0
Available-for-sale Securities		10,411	34,728
Municipal Bond [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Amortized Cost Basis		23,554
Available-for-sale Securities, Gross Unrealized Gain		29
Available-for-sale Securities, Gross Unrealized Loss		0
Available-for-sale Securities		23,583
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds		353,819	363,075
US Government Securities, at Carrying Value		10,411	34,728
Municipal bonds		0	0
Total		364,230	397,803
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds		0	0
US Government Securities, at Carrying Value		0	0
Municipal bonds		23,583	0
Total		$ 23,583	$ 0

Long-term Debt (Details)

Long-term Debt (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2020USD ($)	Dec. 31, 2019USD ($)
Line of Credit Facility [Line Items]
Current borrowing capacity	$ 500,000
Maximum borrowing capacity	$ 550,000
Percentage Of Subsidiary Stock Securing Debt	0.65
Long-term debt	$ 369,400	$ 269,400
Letters of Credit Outstanding, Amount	1,000
Line of Credit Facility, Remaining Borrowing Capacity	$ 129,600
Applicable Margin Federal Funds Rate	0.50%
Applicable Margin 30 Day Libor	2.00%
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage	0.25%
Line of Credit Facility, Interest Rate During Period	2.52%
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate	1.50%
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate	2.25%
Base Rate [Member] | Minimum [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate	0.00%
Base Rate [Member] | Maximum [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate	0.50%

Stockholders' Equity (Details)

Stockholders' Equity (Details) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020$ / sharesshares	Sep. 30, 2019$ / shares	Sep. 30, 2020USD ($)conversionRatioshares	Sep. 30, 2019USD ($)
Stockholders' Equity Note [Abstract]
Aggregate number of shares repurchased during the period (in shares)			1,336,884
Shares repurchased under the program (in shares)			1,186,000
Authorized to repurchased additional shares under repurchase program (in shares)	227,833		227,833
Shares withheld for tax withholding obligations for the vesting of restricted stock awards (in shares)			150,884
Dividends declared per share of common stock (in dollars per share) | $ / shares	$ 0.40	$ 0.30
Payments of Ordinary Dividends, Common Stock | $			$ (46,522)	$ (36,777)
Warrants and Rights Note Disclosure [Abstract]
ClassOfWarrantRightConversionRatioOfWarrantorRightsToShareOfStock | conversionRatio			0.010
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right	1		1
Warrant or Right, Reason for Issuance, Description			Rights PlanOn May 21, 2020, the Board declared a dividend of one right (“Right”) for each outstanding share of common stock to common stockholders of record at the close of business on June 1, 2020 (the “Rights Plan”). Each Right, if and when it becomes exercisable, entitles the registered holder to purchase from us one unit consisting of one one-hundredth of a share of Series A Junior Participating Preferred Stock, par value $0.01 per share. Initially, the Rights are attached to all outstanding shares of our common stock. The Rights are not currently exercisable and the Rights Plan will expire at the close of business on May 20, 2021, unless the Rights are earlier redeemed or exchanged by us.
Warrants and Rights Outstanding, Maturity Date	May 20, 2021		May 20, 2021

Net Income per Share (Details)

Net Income per Share (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Earnings Per Share [Abstract]
Net income	$ 20,009	$ 25,859	$ 133,952	$ 130,704
Less distributed and undistributed earnings allocated to participating securities	104	284	792	1,546
Net Income (Loss) Available to Common Stockholders, Basic	$ 19,905	$ 25,575	$ 133,160	$ 129,158
Weighted average common shares outstanding basic (in shares)	38,507	40,168	38,625	40,481
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	234	149	193	143
Weighted Average Number of Shares Outstanding, Diluted	38,741	40,317	38,818	40,624

Commitments and Contingencies C

Commitments and Contingencies Commitments and Contingencies (Details)	9 Months Ended
	Sep. 30, 2020USD ($)
Commitments and Contingencies Disclosure (Details) [Abstract]
Loss Contingency, Damages Sought	$ 146,000,000
Loss Contingency Accrual, Provision	$ 0