Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 18, 2019 | |
Document And Entity Information [Abstract] | ||
Title of 12(b) Security | Common stock par value $0.000025 per share | |
Entity Incorporation, State or Country Code | DE | |
Entity Registrant Name | TRINET GROUP INC | |
Trading Symbol | TNET | |
Entity Central Index Key | 0000937098 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 43646 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 69,935,199 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-36373 | |
Entity Tax Identification Number | 95-3359658 | |
Entity Address, Address Line One | One Park Place, Suite 600 | |
Entity Address, Postal Zip Code | 94568 | |
Entity Address, City or Town | Dublin, | |
Entity Address, State or Province | CA | |
City Area Code | 510 | |
Local Phone Number | 352-5000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Security Exchange Name | NYSE |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 219 | $ 228 |
Investments | 76 | 54 |
Restricted cash, cash equivalents and investments | 672 | 942 |
Accounts receivable, net | 10 | 11 |
Unbilled revenue, net | 341 | 304 |
Prepaid expenses, net | 64 | 48 |
Other current assets | 73 | 59 |
Total current assets | 1,455 | 1,646 |
Restricted cash, cash equivalents and investments, noncurrent | 200 | 187 |
Investments, noncurrent | 117 | 135 |
Property & equipment, net | 89 | 79 |
Operating lease right-of-use asset | 60 | 0 |
Goodwill | 289 | 289 |
Other intangible assets, net | 18 | 21 |
Other assets | 90 | 78 |
Total assets | 2,318 | 2,435 |
Current liabilities: | ||
Accounts payable and other current liabilities | 40 | 45 |
Long-term debt | 22 | 22 |
Client deposits | 67 | 56 |
Accrued wages | 377 | 352 |
Accrued health insurance costs, net | 143 | 135 |
Accrued workers' compensation costs, net | 64 | 67 |
Payroll tax liabilities and other payroll withholdings | 473 | 729 |
Operating lease liabilities | 17 | 0 |
Insurance premiums and other payables | 16 | 19 |
Total current liabilities | 1,219 | 1,425 |
Long-term debt, noncurrent | 380 | 391 |
Accrued workers' compensation costs, noncurrent, net | 148 | 158 |
Deferred taxes | 67 | 68 |
Operating lease liabilities, noncurrent | 55 | 0 |
Other non-current liabilities | 10 | 18 |
Total liabilities | 1,879 | 2,060 |
Commitments and contingencies (see Note 6) | ||
Stockholders’ equity: | ||
Preferred stock | 0 | 0 |
Common stock and additional paid-in capital | 667 | 641 |
Accumulated deficit | (229) | (266) |
Accumulated other comprehensive income | 1 | 0 |
Total stockholders' equity | 439 | 375 |
Total liabilities & stockholders' equity | $ 2,318 | $ 2,435 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Preferred stock | ||
Preferred stock, par value (in dollars per share) | $ 0.000025 | $ 0.000025 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock | ||
Common stock, par value (in dollars per share) | $ 0.000025 | $ 0.000025 |
Common stock, shares authorized (in shares) | 750,000,000 | 750,000,000 |
Common stock, shares issued (in shares) | 69,991,145 | 70,596,559 |
Common stock, shares outstanding (in shares) | 69,991,145 | 70,596,559 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Total revenues | $ 935 | $ 850 | $ 1,869 | $ 1,711 |
Costs and operating expenses: | ||||
Insurance costs | 704 | 630 | 1,387 | 1,271 |
Cost of providing services | 63 | 51 | 127 | 108 |
Sales and marketing | 52 | 41 | 98 | 80 |
General and administrative | 36 | 31 | 72 | 62 |
Systems development and programming | 13 | 11 | 25 | 24 |
Depreciation and amortization of intangible assets | 12 | 10 | 23 | 19 |
Total costs and operating expenses | 880 | 774 | 1,732 | 1,564 |
Operating income | 55 | 76 | 137 | 147 |
Other income (expense): | ||||
Interest expense, bank fees and other | (6) | (7) | (11) | (13) |
Interest income | 7 | 3 | 13 | 5 |
Income before provision for income taxes | 56 | 72 | 139 | 139 |
Income tax expense | 10 | 14 | 30 | 27 |
Net income | 46 | 58 | 109 | 112 |
Other comprehensive income, net of tax | 1 | 1 | 1 | 0 |
Comprehensive income | $ 47 | $ 59 | $ 110 | $ 112 |
Net income per share: | ||||
Basic (in dollars per share) | $ 0.65 | $ 0.82 | $ 1.56 | $ 1.59 |
Diluted (in dollars per share) | $ 0.64 | $ 0.80 | $ 1.53 | $ 1.55 |
Weighted average shares: | ||||
Basic (in shares) | 69,703,792 | 70,448,809 | 69,806,319 | 70,250,273 |
Diluted (in shares) | 71,074,751 | 72,561,891 | 71,151,219 | 72,404,539 |
Professional service revenues | ||||
Total revenues | $ 127 | $ 115 | $ 263 | $ 244 |
Insurance service revenues | ||||
Total revenues | $ 808 | $ 735 | $ 1,606 | $ 1,467 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Millions | Total | Common Stock and Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss |
Balance at Dec. 31, 2017 | $ 206 | $ 583 | $ (377) | $ 0 |
Issuance of common stock from exercise of stock options | 6 | |||
Issuance of common stock for employee stock purchase plan | 3 | |||
Stock-based compensation expense | 19 | |||
Net income | 112 | 112 | ||
Repurchase of common stock | (30) | |||
Awards effectively repurchased for required employee withholding taxes | (10) | |||
Other comprehensive income | 0 | 0 | ||
Balance at Jun. 30, 2018 | 309 | 611 | (302) | 0 |
Balance at Mar. 31, 2018 | 262 | 595 | (332) | (1) |
Issuance of common stock from exercise of stock options | 3 | |||
Issuance of common stock for employee stock purchase plan | 3 | |||
Stock-based compensation expense | 10 | |||
Net income | 58 | 58 | ||
Repurchase of common stock | (22) | |||
Awards effectively repurchased for required employee withholding taxes | (6) | |||
Other comprehensive income | 1 | 1 | ||
Balance at Jun. 30, 2018 | 309 | 611 | (302) | 0 |
Balance at Dec. 31, 2018 | 375 | 641 | (266) | 0 |
Issuance of common stock from exercise of stock options | 2 | |||
Issuance of common stock for employee stock purchase plan | 4 | |||
Stock-based compensation expense | 20 | |||
Net income | 109 | 109 | ||
Repurchase of common stock | (62) | (62) | ||
Awards effectively repurchased for required employee withholding taxes | (10) | |||
Other comprehensive income | 1 | |||
Balance at Jun. 30, 2019 | 439 | 667 | (229) | 1 |
Balance at Mar. 31, 2019 | 406 | 651 | (245) | 0 |
Issuance of common stock from exercise of stock options | 1 | |||
Issuance of common stock for employee stock purchase plan | 4 | |||
Stock-based compensation expense | 11 | |||
Net income | 46 | 46 | ||
Repurchase of common stock | (24) | |||
Awards effectively repurchased for required employee withholding taxes | (6) | |||
Other comprehensive income | 1 | |||
Balance at Jun. 30, 2019 | $ 439 | $ 667 | $ (229) | $ 1 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Operating activities | ||
Net income | $ 109 | $ 112 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 27 | 24 |
Noncash lease expense | 10 | 0 |
Stock-based compensation | 20 | 19 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 3 | 11 |
Unbilled revenue | (36) | 35 |
Prepaid expenses | 18 | 9 |
Other assets | (30) | (45) |
Accounts payable and other current liabilities | (11) | (28) |
Client deposits | 10 | (24) |
Accrued wages | 25 | (28) |
Accrued health insurance costs | (13) | (13) |
Accrued workers' compensation costs | 9 | (8) |
Payroll taxes payable and other payroll withholdings | (256) | (588) |
Operating lease liabilities | (9) | 0 |
Other liabilities | (2) | (1) |
Net cash used in operating activities | (162) | (543) |
Investing activities | ||
Purchases of marketable securities | (65) | (203) |
Proceeds from sale and maturity of marketable securities | 65 | 63 |
Acquisitions of property and equipment | (25) | (26) |
Net cash used in investing activities | (25) | (166) |
Financing activities | ||
Repurchase of common stock | (62) | (30) |
Proceeds from issuance of common stock from employee stock purchase plan | 4 | 3 |
Proceeds from issuance of common stock from exercised options | 2 | 5 |
Awards effectively repurchased for required employee withholding taxes | (10) | (10) |
Proceeds from issuance of notes payable, net | 0 | 210 |
Payments for extinguishment of debt | 0 | (204) |
Repayment of debt | (11) | (10) |
Net cash used in financing activities | (77) | (36) |
Net decrease in unrestricted and restricted cash and cash equivalents | (264) | (745) |
Cash and cash equivalents, unrestricted and restricted: | ||
Beginning of period | 1,349 | 1,738 |
End of period | 1,085 | 993 |
Supplemental disclosures of cash flow information | ||
Interest paid | 9 | 8 |
Income taxes paid, net | 33 | 24 |
Supplemental schedule of noncash investing and financing activities | ||
Payable for purchase of property and equipment | $ 8 | $ 2 |
Description of Business and Sig
Description of Business and Significant Accounting Policies - (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES | DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES Description of Business TriNet Group, Inc. (TriNet, or the Company, we, our and us), a professional employer organization, provides comprehensive human resources solutions for small to midsize businesses under a co-employment model. These HR solutions include multi-state payroll processing and tax administration, employee benefits programs, including health insurance and retirement plans, workers' compensation insurance and claims management, employment and benefit law compliance, and other HR-related services. Through the co-employment relationship, we are the employer of record for certain employment-related administrative and regulatory purposes for the worksite employees, including: • compensation through wages and salaries, • employer payroll-related tax payments, • employee payroll-related tax withholdings and payments, • employee benefit programs, including health and life insurance, and others, and • workers' compensation coverage. Our clients are responsible for the day-to-day job responsibilities of the WSEs. We operate in one reportable segment. All of our service revenues are generated from external clients. Less than 1% of our revenue is generated outside of the U.S. Basis of Presentation These unaudited condensed consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial reporting and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X of the Rules and Regulations of the Securities and Exchange Commission. Certain information and note disclosures included in our annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the condensed consolidated financial statements reflect all adjustments, that are normal and recurring in nature, necessary for fair financial statement presentation. The results of operations for the three and six months ended June 30, 2019 are not necessarily indicative of the operating results anticipated for the full year. These Financial Statements should be read in conjunction with the audited Consolidated Financial Statements included in Part II, Item 8 Financial Statements and Supplementary Data of our Annual Report on Form 10-K for the year ended December 31, 2018 ( 2018 Form 10-K). Reclassifications Certain prior year amounts have been reclassified to conform to current period presentation. Effects on the cash flow statement due to reclassifications are summarized below: Six Months Ended June 30, 2018 (in millions) As previously reported Reclassified amounts As revised Operating activities Accounts receivable $ — $ 11 $ 11 Unbilled revenue — 35 35 Prepaid income taxes 2 (2 ) — Prepaid expenses and other current assets (23 ) 23 — Prepaid expenses — (9 ) (9 ) Workers' compensation collateral receivable (6 ) 6 — Accounts payable and other current liabilities (14 ) (14 ) (28 ) Client deposits — (24 ) (24 ) Accrued wages — (28 ) (28 ) Accrued corporate wages (5 ) 5 — Accrued health insurance costs — (13 ) (13 ) Accrued workers' compensation costs — (8 ) (8 ) Workers' compensation loss reserves and other non-current liabilities (4 ) 4 — Payroll taxes payable and other payroll withholdings — (588 ) (588 ) Worksite employee related assets 4 (4 ) — Worksite employee related liabilities (652 ) 652 — Other assets — (45 ) (45 ) Other liabilities — (1 ) (1 ) Effects on the consolidated statements of income and comprehensive income due to reclassifications are summarized below: Three Months Ended Six months ended June 30, 2018 June 30, 2018 (in millions) As previously reported Reclassified amounts As revised As previously reported Reclassified amounts As revised Depreciation $ 8 $ (8 ) $ — $ 16 $ (16 ) $ — Amortization of intangible assets 2 (2 ) — 3 (3 ) — Depreciation and amortization of intangible assets — 10 10 — 19 19 Interest expense, bank fees and other, net (4 ) 4 — (8 ) 8 — Interest expense, bank fees and other — (7 ) (7 ) — (13 ) (13 ) Interest income — 3 3 — 5 5 Other comprehensive income, net of tax — 1 1 — — — Comprehensive income 58 1 59 112 — 112 Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect certain reported amounts and related disclosures. Significant estimates include: • liability for unpaid losses and loss adjustment expenses (accrued workers' compensation costs) related to workers' compensation and workers' compensation collateral receivable, • accrued health insurance costs, • liability for insurance premiums payable, • valuation of the investment portfolio, • impairments of goodwill and other intangible assets, • income tax assets and liabilities, and • liability for legal contingencies. These estimates are based on historical experience and on various other assumptions that we believe to be reasonable from the facts available to us. Some of the assumptions are highly uncertain at the time of estimation. To the extent actual experience differs from the assumptions used, our consolidated financial statements could be materially affected. Accrued Health Insurance Costs We sponsor and administer a number of fully insured, risk-based employee benefit plans, including group health, dental, and vision as an employer plan sponsor under section 3(5) of the ERISA. In the six months ended June 30, 2019 , the majority of our group health insurance costs related to risk-based plans. Our remaining group health insurance costs were for guaranteed-cost policies. Accrued health insurance costs are established to provide for the estimated unpaid costs of reimbursing the carriers for paying claims within the deductible layer in accordance with risk-based health insurance policies. These accrued costs include estimates for reported losses, plus estimates for claims incurred but not paid. We assess accrued health insurance costs regularly based upon independent actuarial studies that include other relevant factors such as current and historical claims payment patterns, plan enrollment and medical trend rates. In certain carrier contracts we are required to prepay the expected claims activity for subsequent periods. These prepaid balances by agreement permit net settlement of obligations and offset the accrued health insurance costs. As of June 30, 2019 and December 31, 2018 , prepayments included in accrued health insurance costs were $39 million and $33 million , respectively. When the prepaid is in excess of our recorded liability, the net asset position is included in prepaid expenses. As of June 30, 2019 and December 31, 2018 , accrued health insurance costs included in prepaid expenses were $51 million and $50 million , respectively. Derivative Instruments In June 2019, we entered into a interest rate collar derivative transaction with no upfront premium to mitigate the risk of changes in interest rates on our floating rate debt. This derivative, for which we have elected and qualify for cash flow hedge accounting, is recorded on the balance sheet at its fair value. Changes in the derivative’s fair value are recorded each period in other comprehensive income until the underlying monthly interest payment and the corresponding portion of the derivative are settled, at which point changes in fair value are recorded in net income. We evaluate this derivative each quarter to determine that it remains effective by comparing the remaining cash flows of the derivative against the related interest payments of our floating rate debt. We do not enter into any derivatives for trading or other speculative purposes. Leases We adopted ASU 2016-02 - Leases (ASC 842) effective January 1, 2019 using the optional transition method, under which we recognized the cumulative effects of initially applying the standard as an adjustment to the opening balance of retained earnings on January 1, 2019 with unchanged comparative periods. As part of this adoption, we elected the following practical expedients: • not to reassess 1) whether any contracts that existed prior to adoption have or contain leases, 2) the classification of our existing leases or 3) initial direct costs for existing leases, • to use the practical expedient of using hindsight to determine the lease terms and evaluate any impairments in right-of-use assets upon transition, and • not separately record non-lease and lease components for all leases in which we act as a lessee. We determine if a new contractual arrangement is a lease at contract inception. If a contract contains a lease, we evaluate whether it should be classified as an operating or a finance lease. If applicable as a lease, we record our lease liabilities and ROU assets based on the future minimum lease payments over the lease term and only include options to renew a lease in the minimum lease payments if it is reasonably certain that we will exercise that option. For certain leases with original terms of twelve months or less we recognize the lease expense as incurred and we do not recognize lease liabilities and ROU assets. We measure our lease liabilities based on the future minimum lease payments discounted over the lease term. We determine our discount rate at lease inception using our incremental borrowing rate, which is based on our outstanding term debts that are collateralized by certain corporate assets. As of June 30, 2019 , the weighted-average rate used in discounting the lease liability was 4.6% . We measure our ROU assets based on the associated lease liabilities adjusted for any lease incentives such as tenant improvement allowances and classify operating ROU assets in other assets in our condensed consolidated balance sheet. For operating leases, we recognize expense for lease payments on a straight-line basis over the lease term. Recent Accounting Pronouncements Recently adopted accounting guidance Leases - In February of 2016, the FASB issued ASC 842, which replaced existing lease guidance under GAAP. Under this guidance, we recognize on our condensed balance sheet lease liabilities representing the present value of future lease payments and an associated right-of-use asset representing our right to use or control the use of specified assets for the lease term for any operating lease with a term greater than one year. The impact of our adoption of ASC 842 did not have a material impact on our income statement or cash flow statement. The impact on our condensed balance sheets is as follows: June 30, 2019 (in millions) As reported Balance Using Previous Standard Increase (Decrease) Balance sheet Assets Operating lease right-of-use assets $ 60 $ — $ 60 Liabilities Operating lease liabilities 17 — 17 Operating lease liabilities, noncurrent 55 11 44 Equity Accumulated deficit (229 ) — (229 ) Recently issued accounting pronouncements Credit Losses - In June 2016, the FASB issued ASU 2016-13 - Financial Instruments - Credit Losses (Topic 326), which requires financial assets to be presented at the net amount expected to be collected. We will be required to use forward-looking information when evaluating an allowance for our accounts receivable, unbilled revenue and other financial assets measured at amortized cost. Topic 326 also modifies the impairment guidance for available-for-sale debt securities to require an allowance for credit losses. We will adopt Topic 326 effective January 1, 2020 using a modified retrospective approach through a cumulative-effect adjustment to retained earnings. We are currently evaluating the impact of this standard on our consolidated financial statements, including accounting policies, processes and systems. |
Cash, Cash Equivalents and Inve
Cash, Cash Equivalents and Investments - (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Cash and Cash Equivalents [Abstract] | |
CASH, CASH EQUIVALENTS AND INVESTMENTS | CASH, CASH EQUIVALENTS AND INVESTMENTS Under the terms of the agreements with certain of our workers' compensation and health benefit insurance carriers, we are required to maintain collateral in trust accounts for the benefit of specified insurance carriers and to reimburse the carriers’ claim payments within our deductible layer. We invest a portion of the collateral amounts in marketable securities. We report the current and noncurrent portions of these trust accounts as restricted cash, cash equivalents and investments on the consolidated balance sheets. We require our clients to prefund their payroll and related taxes and other withholding liabilities before payroll is processed or due for payment. This prefund is included in restricted cash, cash equivalents and investments as payroll funds collected, which is designated to pay pending payrolls, payroll tax liabilities and other payroll withholdings. We also invest available corporate funds, primarily in fixed income securities which meet the requirements of our corporate investment policy and are classified as available for sale (AFS). Our total cash, cash equivalents and investments are summarized below: June 30, 2019 December 31, 2018 (in millions) Cash and cash equivalents Available-for-sale marketable securities Total Cash and cash equivalents Available-for-sale marketable securities Certificate of deposits Total Cash and cash equivalents $ 219 $ — $ 219 $ 228 $ — $ — $ 228 Investments — 76 76 — 54 — 54 Restricted cash, cash equivalents and investments Insurance carriers' security deposits 14 — 14 15 — — 15 Payroll funds collected 519 — 519 783 — — 783 Collateral for health benefits claims 75 — 75 75 — — 75 Collateral for workers' compensation claims 63 1 64 66 1 — 67 Collateral to secure standby letter of credit — — — — — 2 2 Total restricted cash, cash equivalents and investments 671 1 672 939 1 2 942 Investments, noncurrent — 117 117 — 135 — 135 Restricted cash, cash equivalents and investments, noncurrent Collateral for workers' compensation claims 195 5 200 182 5 — 187 Total $ 1,085 $ 199 $ 1,284 $ 1,349 $ 195 $ 2 $ 1,546 |
Investments - (Notes)
Investments - (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | INVESTMENTS All of our investment securities that have a contractual maturity date greater than three months are classified as AFS. The amortized cost, gross unrealized gains, gross unrealized losses, and fair values of our investments as of June 30, 2019 and December 31, 2018 are presented below. June 30, 2019 December 31, 2018 (in millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Asset-backed securities $ 35 $ — $ — $ 35 $ 33 $ — $ — $ 33 Corporate bonds 94 1 — 95 99 — — 99 U.S. government agencies and government- sponsored agencies 5 — — 5 7 — — 7 U.S. treasuries 58 1 — 59 46 — — 46 Exchange traded fund 1 — — 1 1 — — 1 Other debt securities 4 — — 4 9 — — 9 Total $ 197 $ 2 $ — $ 199 $ 195 $ — $ — $ 195 Gross unrealized losses as of June 30, 2019 and December 31, 2018 were not material. Unrealized losses on fixed income securities are principally caused by changes in interest rates and the financial condition of the issuer. In analyzing an issuer's financial condition, we consider whether the securities are issued by the federal government or its agencies, whether downgrades by credit rating agencies have occurred, and industry analysts' reports. As we have the ability to hold these investments until maturity, or for the foreseeable future, no decline was deemed to be other-than-temporary. Actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties. The fair value of debt investments by contractual maturity are shown below: (in millions) June 30, 2019 One year or less $ 81 Over one year through five years 103 Over five years through ten years 7 Over ten years 7 Total fair value $ 198 The gross proceeds from sales and maturities of AFS securities for the three and six months ended June 30, 2019 and June 30, 2018 are presented below. We had immaterial realized gains and losses from sales of investments for the three and six months ended June 30, 2019 and June 30, 2018 . Three Months Ended June 30, Six Months Ended June 30, (in millions) 2019 2018 2019 2018 Gross proceeds from sales $ 14 $ — $ 28 $ 39 Gross proceeds from maturities 19 10 36 24 |
Leases - (Notes)
Leases - (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | LEASES Our leasing activities predominantly consist of leasing office space that we occupy, which we have classified as operating leases. Our leases are comprised of fixed payments with remaining lease terms of 1 to 9.3 years , some of which include options to extend for up to 15 years . As of June 30, 2019 , we have not included any options to extend or cancel in the calculation of our lease liability or ROU asset. We do not have any significant residual value guarantees or restrictive covenants in our leases. During the second quarter of 2019, we recognized operating lease expense of $5 million and we recognized $10 million during the first half of 2019 . During the second quarter of 2019, we paid $4 million to reduce operating lease liabilities and $8 million during the first half of 2019 . During the second quarter of 2019, we recognized $5 million in new operating lease liabilities in exchange for ROU assets and we recognized $17 million during the first half of 2019 . As of June 30, 2019 , the weighted average remaining lease term on our operating leases was 6.2 years . Future minimum lease payments as of June 30, 2019 and December 31, 2018 were as follows: (in millions) June 30, 2019 (2) December 31, 2018 (3) 2019 (1) $ 10 $ 18 2020 18 17 2021 11 11 2022 10 9 2023 9 8 2024 6 5 2025 and thereafter 19 20 Total future minimum lease payments $ 83 $ 88 Less: imputed interest (11 ) N/A (4) Total operating lease liabilities 72 N/A (4) Current portion 17 N/A (4) Non-current portion 55 N/A (4) (1) The remaining payments as of June 30, 2019 exclude those made during the six months ended June 30, 2019 . (2) Presented in accordance with ASC 842, which excludes base payments of $4 million for leases that do not yet have a commencement date. (3) Presented in accordance with ASC 840. (4) N/A - Not Applicable under ASC 840. As of June 30, 2019 , we have entered into two leases that have not commenced for terms up to 5 years . Those leases will require minimum lease payments over their terms of $4 million . |
Accrued Workers' Compensation C
Accrued Workers' Compensation Cost - (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Insurance [Abstract] | |
ACCRUED WORKERS' COMPENSATION COSTS | ACCRUED WORKERS' COMPENSATION COSTS The following table summarizes the accrued workers’ compensation cost activity for the three and six months ended June 30, 2019 and 2018 : Three Months Ended Six Months Ended (in millions) 2019 2018 2019 2018 Total accrued costs, beginning of period $ 236 $ 250 $ 238 $ 255 Incurred Current year 16 19 35 39 Prior years (11 ) (6 ) (16 ) (13 ) Total incurred 5 13 19 26 Paid Current year (2 ) (2 ) (3 ) (2 ) Prior years (15 ) (17 ) (30 ) (35 ) Total paid (17 ) (19 ) (33 ) (37 ) Total accrued costs, end of period $ 224 $ 244 $ 224 $ 244 The following summarizes workers' compensation liabilities on the condensed consolidated balance sheets: (in millions) June 30, 2019 December 31, 2018 Total accrued costs, end of period $ 224 $ 238 Collateral paid to carriers and offset against accrued costs (12 ) (13 ) Total accrued costs, net of carrier collateral offset $ 212 $ 225 Payable in less than 1 year $ 64 $ 67 Payable in more than 1 year 148 158 Total accrued costs, net of carrier collateral offset $ 212 $ 225 Incurred claims related to prior years represent changes in estimates for ultimate losses on workers' compensation claims. For the three and six months ended June 30, 2019 , the change was primarily due to a decrease in estimate of ultimate losses related to older plan years and the recognition of current year development of ultimate losses. As of June 30, 2019 and December 31, 2018 , we had $55 million and $57 million , respectively, of collateral held by insurance carriers of which $12 million and $13 million |
Commitments and Contingencies -
Commitments and Contingencies - (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Contingencies In August 2015, Howard Welgus, a purported stockholder, filed a putative securities class action lawsuit, Welgus v. TriNet Group, Inc., et. al., under the Securities Exchange Act of 1934 in the U.S. District Court for the Northern District of California. On December 18, 2017, the district court granted TriNet’s motion to dismiss the complaint, which had been amended in April 2016 and again in March 2017, in its entirety, without leave to amend. Plaintiff filed a notice of appeal of the district court’s order on January 17, 2018 and oral arguments were held before the Ninth Circuit Court of Appeals on March 14, 2019. On March 26, 2019, the Ninth Circuit Court of Appeals affirmed the district court’s dismissal of the amended complaint in its entirety. The deadline for Plaintiff-Appellant to petition the U.S. Supreme Court to review the decision by the Court of Appeals expired on June 24, 2019 and the litigation is therefore terminated. We are and, from time to time, have been and may in the future become involved in various litigation matters, legal proceedings, and claims arising in the ordinary course of our business, including disputes with our clients or various class action, collective action, representative action, and other proceedings arising from the nature of our co-employment relationship with our clients and WSEs in which we are named as a defendant. In addition, due to the nature of our co-employment relationship with our clients and WSEs, we could be subject to liability for federal and state law violations, even if we do not participate in such violations. While our agreements with our clients contain indemnification provisions related to the conduct of our clients, we may not be able to avail ourselves of such provisions in every instance. We have accrued our current best estimates of probable losses with respect to these matters, which are individually and in aggregate immaterial to our consolidated financial statements. While the outcome of the matters described above cannot be predicted with certainty, management currently does not believe that any such claims or proceedings will have a materially adverse effect on our consolidated financial position, results of operations, or cash flows. However, the unfavorable resolution of any particular matter or our reassessment of our exposure for any of the above matters based on additional information obtained in the future could have a material impact on our consolidated financial position, results of operations, or cash flows. |
Stockholders' Equity - (Notes)
Stockholders' Equity - (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Common Stock The following table presents a rollforward of our common stock for the three and six months ended June 30, 2019 and 2018 : Three Months Ended Six Months Ended 2019 2018 2019 2018 Shares issued and outstanding, beginning balance 70,079,747 70,363,251 70,596,559 69,818,392 Issuance of common stock from vested restricted stock units 213,991 389,875 500,710 1,000,141 Issuance of common stock from exercise of stock options 58,491 263,464 139,773 469,894 Issuance of common stock for employee stock purchase plan 112,623 84,525 112,623 84,525 Repurchase of common stock (392,700 ) (434,766 ) (1,175,609 ) (594,799 ) Awards effectively repurchased for required employee withholding taxes (81,007 ) (92,462 ) (182,911 ) (204,266 ) Shares issued and outstanding, ending balance 69,991,145 70,573,887 69,991,145 70,573,887 Equity-Based Incentive Plans Our 2019 Equity Incentive Plan (the 2019 Plan), approved in May 2019, replaced our 2009 Equity Incentive Plan and provides for the grants of options (both non-qualified and incentive stock options), stock appreciation rights, restricted stock, RSUs, performance awards (each as defined in the 2019 Plan) and other cash- and stock-based awards. Shares available for grant as of June 30, 2019 were approximately 2,839,430 . Restricted Stock Units (RSUs) and Restricted Stock Awards (RSAs) Time-based RSUs and RSAs generally vest over a four -year term. Performance-based RSUs and RSAs are subject to vesting requirements based on certain financial performance metrics as defined in the grant notice. Actual number of shares earned may range from 0% to 200% of the target award. Awards granted in 2019 and 2018 are based on a single-year performance period subject to subsequent multi-year vesting with 50% of the shares earned vesting in one year after the performance period and the remaining shares in the year after. The following table summarizes RSU and RSA activity under our equity-based plans for the six months ended June 30, 2019 : RSUs RSAs Number of Units Weighted-Average Grant Date Fair Value Number of Units Weighted-Average Grant Date Fair Value Nonvested at December 31, 2018 1,737,554 $ 32.83 346,792 $ 49.13 Granted 724,172 60.58 — — Vested (511,813 ) 30.34 (31,248 ) 50.61 Forfeited (106,737 ) 36.52 (11,103 ) 49.35 Nonvested at June 30, 2019 1,843,176 $ 44.18 304,441 $ 49.11 Equity-Based Compensation Stock-based compensation expense is measured based on the fair value of the stock award on the grant date and recognized over the requisite service period for each separately vesting portion of the stock award. Stock-based compensation expense and other disclosures for stock-based awards made to our employees pursuant to the equity plans was as follows: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2019 2018 2019 2018 Cost of providing services $ 2 $ 2 $ 4 $ 4 Sales and marketing 1 2 1 4 General and administrative 7 5 13 9 Systems development and programming costs 1 1 2 2 Total stock-based compensation expense $ 11 $ 10 $ 20 $ 19 Stock Repurchases In February 2019, our board of directors authorized a $300 million incremental increase to our ongoing stock repurchase program initiated in May 2014. During the six months ended June 30, 2019 , we repurchased 1,175,609 shares of common stock for approximately $62 million . As of June 30, 2019 , approximately $313 million remained available for further repurchases of our common stock under all authorizations from our board of directors under this program. |
Income Taxes - (Notes)
Income Taxes - (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Our effective income tax rate was 17% and 19% for the second quarter of 2019 and 2018 , respectively, and 21% and 19% for the six months ended June 30, 2019 and 2018 , respectively. The decrease when comparing the second quarter of 2019 with the same period in 2018, is primarily due to a one-time benefit associated with prior year tax expense. The increase in the year to date rates for 2019 when compared to the same period in 2018, consisted primarily from a decrease in tax benefits recognized from excess tax benefits related to stock-based compensation. During the six months ended June 30, 2019 , there was an increase of $1 million in our unrecognized tax benefits. The total amount of gross interest and penalties accrued was immaterial. It is reasonably possible the amount of the unrecognized benefit could increase or decrease within the next twelve months, which would have an impact on net income. We are subject to tax in U.S. federal and various state and local jurisdictions, as well as Canada. We are not subject to any material income tax examinations in federal or state jurisdictions for tax years prior to January 1, 2012. We previously paid Notices of Proposed Assessments disallowing employment tax credits totaling $11 million , plus interest of $4 million in connection with the IRS examination of Gevity HR, Inc. and its subsidiaries, which was acquired by TriNet in June 2009. TriNet filed suit in June 2016 to recover the disallowed credits, and the issue is being resolved through the litigation process. TriNet and the U.S. filed cross motions for summary judgment in federal district court. On September 17, 2018, the federal district court granted TriNet's motion for summary judgment and denied the U.S.'s motion. On January 18, 2019, the federal district court entered judgment in favor of TriNet in the amount of $15 million , plus interest. The U.S. filed a notice of appeal of the federal district court's decision on March 18, 2019. The U.S. filed its opening brief in the court of appeals on June 10, 2019 and we filed our answering brief on July 24, 2019. We will continue to vigorously defend our position through the litigation process. |
Earnings Per Share (EPS) - (Not
Earnings Per Share (EPS) - (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE (EPS) | EARNINGS PER SHAR E (EPS) The following table presents the computation of our basic and diluted EPS attributable to our common stock: Three Months Ended Six Months Ended (in millions, except per share data) 2019 2018 2019 2018 Net income $ 46 $ 58 $ 109 $ 112 Weighted average shares of common stock outstanding 70 70 70 70 Basic EPS $ 0.65 $ 0.82 $ 1.56 $ 1.59 Net income $ 46 $ 58 $ 109 $ 112 Weighted average shares of common stock outstanding 70 70 70 70 Dilutive effect of stock options and restricted stock units 1 3 1 2 Weighted average shares of common stock outstanding 71 73 71 72 Diluted EPS $ 0.64 $ 0.80 $ 1.53 $ 1.55 Common stock equivalents excluded from income per diluted share because of their anti-dilutive effect — — 1 1 |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS Fair Value of Financial Instruments We use an independent pricing source to determine the fair value of our AFS. The independent pricing source utilizes various pricing models for each asset class; including the market approach. The inputs and assumptions for the pricing models are market observable inputs including trades of comparable securities, dealer quotes, credit spreads, yield curves and other market-related data. We have not adjusted the prices obtained from the independent pricing service and we believe the prices received from the independent pricing service are representative of the prices that would be received to sell the assets at the measurement date (exit price). The carrying value of the Company's cash equivalents and restricted cash equivalents approximate their fair values due to their short-term maturities. The Company's restricted investments are valued using quoted market prices and multiple dealer quotes. We did not have any Level 3 financial instruments recognized in our balance sheet as of June 30, 2019 and December 31, 2018 . There were no transfers between levels as of June 30, 2019 and December 31, 2018 . Fair Value Measurements on a Recurring Basis The following table summarizes our financial instruments by significant categories and fair value measurement on a recurring basis as of June 30, 2019 and December 31, 2018 . (in millions) Level 1 Level 2 Total June 30, 2019 Cash equivalents: Money market mutual funds $ 89 $ — 89 Total cash equivalents 89 — 89 Investments: Asset-backed securities — 35 35 Corporate bonds — 95 95 U.S. government agencies and government-sponsored agencies — 5 5 U.S. treasuries — 54 54 Other debt securities — 4 4 Total investments — 193 193 Restricted cash equivalents: Money market mutual funds 43 — 43 Commercial paper 18 — 18 Total restricted cash equivalents 61 — 61 Restricted investments: U.S. treasuries — 5 5 Exchange traded fund 1 — 1 Certificate of deposit — — — Total restricted investments 1 5 6 Total unrestricted and restricted cash equivalents and investments $ 151 $ 198 $ 349 (in millions) Level 1 Level 2 Total December 31, 2018 Cash equivalents Money market mutual funds $ 4 $ — $ 4 U.S. treasuries — 1 1 Total cash equivalents 4 1 5 Investments Asset-backed securities — 33 33 Corporate bonds — 99 99 U.S. government agencies and government-sponsored agencies — 7 7 U.S. treasuries — 41 41 Other debt securities — 9 9 Total investments — 189 189 Restricted cash equivalents: Money market mutual funds 48 — 48 Commercial paper 20 — 20 Total restricted cash equivalents 68 — 68 Restricted investments: U.S. treasuries — 5 5 Exchange traded fund 1 — 1 Certificate of deposit — 2 2 Total restricted investments 1 7 8 Total unrestricted and restricted cash equivalents and investments $ 73 $ 197 $ 270 Fair Value of Financial Instruments Disclosure Long-Term Debt Our long-term debt is a floating rate debt and the fair value of our floating rate debt approximates its carrying value (exclusive of issuance costs) at June 30, 2019 . The fair value of our floating rate debt is estimated based on a discounted cash flow, which incorporates credit spreads and market interest rates to estimate the fair value and is considered Level 3 in the hierarchy for fair value measurement. Derivative Instruments In June 2019, we entered into an interest rate collar derivative transaction with no upfront premium to mitigate the risk of changes in interest rates on the interest payments on a portion of our floating rate debt. If short-term interest rates increase, we will incur higher interest expense on any future outstanding balances of floating rate debt. We use this derivative as part of our interest rate risk management strategy and designated it as a cash flow hedge. If interest rates rise above the cap strike rate on the contract, we will receive variable-rate amounts and if interest rates fall below the floor strike rate on the contract, we will pay variable-rate amounts. The following table summarizes the fair value of our derivative instruments at June 30, 2019 : June 30, 2019 Fair Market Value (in millions) Hedge type Final settlement date Notional amount Other current assets Accounts payable and other current liabilities Derivatives designated as hedging instruments Collar - LIBOR Cash flow May 2022 $ 213 $ — $ — The pre-tax effect of derivative instruments for the three and six months ended June 30, 2019 is insignificant and we estimate that an insignificant amount of net derivative gains or losses included in other comprehensive income will be reclassified into earnings within the following 12 months. There were no cash flows associated with the derivative for the three months and six months ended June 30, 2019 . As of June 30, 2019 , we do not hold, nor have we posted, any collateral related to the above derivative instrument. The interest rate collar derivative is classified as Level 2 in the fair value hierarchy as its value is determined using observable inputs such as forward LIBOR curves. |
Description of Business and S_2
Description of Business and Significant Accounting Policies - (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Segment Information | We operate in one reportable segment. All of our service revenues are generated from external clients. Less than 1% of our revenue is generated outside of the U.S. |
Basis of Presentation | These unaudited condensed consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial reporting and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X of the Rules and Regulations of the Securities and Exchange Commission. Certain information and note disclosures included in our annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the condensed consolidated financial statements reflect all adjustments, that are normal and recurring in nature, necessary for fair financial statement presentation. The results of operations for the three and six months ended June 30, 2019 are not necessarily indicative of the operating results anticipated for the full year. These Financial Statements should be read in conjunction with the audited Consolidated Financial Statements included in Part II, Item 8 Financial Statements and Supplementary Data of our Annual Report on Form 10-K for the year ended December 31, 2018 ( 2018 Form 10-K). |
Reclassifications | Certain prior year amounts have been reclassified to conform to current period presentation. |
Use of Estimates | The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect certain reported amounts and related disclosures. Significant estimates include: • liability for unpaid losses and loss adjustment expenses (accrued workers' compensation costs) related to workers' compensation and workers' compensation collateral receivable, • accrued health insurance costs, • liability for insurance premiums payable, • valuation of the investment portfolio, • impairments of goodwill and other intangible assets, • income tax assets and liabilities, and • liability for legal contingencies. These estimates are based on historical experience and on various other assumptions that we believe to be reasonable from the facts available to us. Some of the assumptions are highly uncertain at the time of estimation. To the extent actual experience differs from the assumptions used, our consolidated financial statements could be materially affected. Accrued Health Insurance Costs We sponsor and administer a number of fully insured, risk-based employee benefit plans, including group health, dental, and vision as an employer plan sponsor under section 3(5) of the ERISA. In the six months ended June 30, 2019 , the majority of our group health insurance costs related to risk-based plans. Our remaining group health insurance costs were for guaranteed-cost policies. Accrued health insurance costs are established to provide for the estimated unpaid costs of reimbursing the carriers for paying claims within the deductible layer in accordance with risk-based health insurance policies. These accrued costs include estimates for reported losses, plus estimates for claims incurred but not paid. We assess accrued health insurance costs regularly based upon independent actuarial studies that include other relevant factors such as current and historical claims payment patterns, plan enrollment and medical trend rates. In certain carrier contracts we are required to prepay the expected claims activity for subsequent periods. These prepaid balances by agreement permit net settlement of obligations and offset the accrued health insurance costs. As of June 30, 2019 and December 31, 2018 , prepayments included in accrued health insurance costs were $39 million and $33 million , respectively. When the prepaid is in excess of our recorded liability, the net asset position is included in prepaid expenses. As of June 30, 2019 and December 31, 2018 , accrued health insurance costs included in prepaid expenses were $51 million and $50 million , respectively. |
Derivative Instruments | Derivative Instruments In June 2019, we entered into a interest rate collar derivative transaction with no upfront premium to mitigate the risk of changes in interest rates on our floating rate debt. This derivative, for which we have elected and qualify for cash flow hedge accounting, is recorded on the balance sheet at its fair value. Changes in the derivative’s fair value are recorded each period in other comprehensive income until the underlying monthly interest payment and the corresponding portion of the derivative are settled, at which point changes in fair value are recorded in net income. We evaluate this derivative each quarter to determine that it remains effective by comparing the remaining cash flows of the derivative against the related interest payments of our floating rate debt. We do not enter into any derivatives for trading or other speculative purposes. |
Leases | Leases We adopted ASU 2016-02 - Leases (ASC 842) effective January 1, 2019 using the optional transition method, under which we recognized the cumulative effects of initially applying the standard as an adjustment to the opening balance of retained earnings on January 1, 2019 with unchanged comparative periods. As part of this adoption, we elected the following practical expedients: • not to reassess 1) whether any contracts that existed prior to adoption have or contain leases, 2) the classification of our existing leases or 3) initial direct costs for existing leases, • to use the practical expedient of using hindsight to determine the lease terms and evaluate any impairments in right-of-use assets upon transition, and • not separately record non-lease and lease components for all leases in which we act as a lessee. We determine if a new contractual arrangement is a lease at contract inception. If a contract contains a lease, we evaluate whether it should be classified as an operating or a finance lease. If applicable as a lease, we record our lease liabilities and ROU assets based on the future minimum lease payments over the lease term and only include options to renew a lease in the minimum lease payments if it is reasonably certain that we will exercise that option. For certain leases with original terms of twelve months or less we recognize the lease expense as incurred and we do not recognize lease liabilities and ROU assets. We measure our lease liabilities based on the future minimum lease payments discounted over the lease term. We determine our discount rate at lease inception using our incremental borrowing rate, which is based on our outstanding term debts that are collateralized by certain corporate assets. As of June 30, 2019 , the weighted-average rate used in discounting the lease liability was 4.6% . We measure our ROU assets based on the associated lease liabilities adjusted for any lease incentives such as tenant improvement allowances and classify operating ROU assets in other assets in our condensed consolidated balance sheet. For operating leases, we recognize expense for lease payments on a straight-line basis over the lease term. |
Recent Accounting Pronouncements | Recently adopted accounting guidance Leases - In February of 2016, the FASB issued ASC 842, which replaced existing lease guidance under GAAP. Under this guidance, we recognize on our condensed balance sheet lease liabilities representing the present value of future lease payments and an associated right-of-use asset representing our right to use or control the use of specified assets for the lease term for any operating lease with a term greater than one year. The impact of our adoption of ASC 842 did not have a material impact on our income statement or cash flow statement. The impact on our condensed balance sheets is as follows: June 30, 2019 (in millions) As reported Balance Using Previous Standard Increase (Decrease) Balance sheet Assets Operating lease right-of-use assets $ 60 $ — $ 60 Liabilities Operating lease liabilities 17 — 17 Operating lease liabilities, noncurrent 55 11 44 Equity Accumulated deficit (229 ) — (229 ) Recently issued accounting pronouncements Credit Losses - In June 2016, the FASB issued ASU 2016-13 - Financial Instruments - Credit Losses (Topic 326), which requires financial assets to be presented at the net amount expected to be collected. We will be required to use forward-looking information when evaluating an allowance for our accounts receivable, unbilled revenue and other financial assets measured at amortized cost. Topic 326 also modifies the impairment guidance for available-for-sale debt securities to require an allowance for credit losses. We will adopt Topic 326 effective January 1, 2020 using a modified retrospective approach through a cumulative-effect adjustment to retained earnings. We are currently evaluating the impact of this standard on our consolidated financial statements, including accounting policies, processes and systems. |
Fair Value Measurement | Fair Value of Financial Instruments We use an independent pricing source to determine the fair value of our AFS. The independent pricing source utilizes various pricing models for each asset class; including the market approach. The inputs and assumptions for the pricing models are market observable inputs including trades of comparable securities, dealer quotes, credit spreads, yield curves and other market-related data. We have not adjusted the prices obtained from the independent pricing service and we believe the prices received from the independent pricing service are representative of the prices that would be received to sell the assets at the measurement date (exit price). |
Description of Business and S_3
Description of Business and Significant Accounting Policies - (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Effects on cash flow due to new accounting pronouncements | Effects on the cash flow statement due to reclassifications are summarized below: Six Months Ended June 30, 2018 (in millions) As previously reported Reclassified amounts As revised Operating activities Accounts receivable $ — $ 11 $ 11 Unbilled revenue — 35 35 Prepaid income taxes 2 (2 ) — Prepaid expenses and other current assets (23 ) 23 — Prepaid expenses — (9 ) (9 ) Workers' compensation collateral receivable (6 ) 6 — Accounts payable and other current liabilities (14 ) (14 ) (28 ) Client deposits — (24 ) (24 ) Accrued wages — (28 ) (28 ) Accrued corporate wages (5 ) 5 — Accrued health insurance costs — (13 ) (13 ) Accrued workers' compensation costs — (8 ) (8 ) Workers' compensation loss reserves and other non-current liabilities (4 ) 4 — Payroll taxes payable and other payroll withholdings — (588 ) (588 ) Worksite employee related assets 4 (4 ) — Worksite employee related liabilities (652 ) 652 — Other assets — (45 ) (45 ) Other liabilities — (1 ) (1 ) |
Effects on income due to new accounting pronouncements | Effects on the consolidated statements of income and comprehensive income due to reclassifications are summarized below: Three Months Ended Six months ended June 30, 2018 June 30, 2018 (in millions) As previously reported Reclassified amounts As revised As previously reported Reclassified amounts As revised Depreciation $ 8 $ (8 ) $ — $ 16 $ (16 ) $ — Amortization of intangible assets 2 (2 ) — 3 (3 ) — Depreciation and amortization of intangible assets — 10 10 — 19 19 Interest expense, bank fees and other, net (4 ) 4 — (8 ) 8 — Interest expense, bank fees and other — (7 ) (7 ) — (13 ) (13 ) Interest income — 3 3 — 5 5 Other comprehensive income, net of tax — 1 1 — — — Comprehensive income 58 1 59 112 — 112 |
Effect of Adoption of ASU 2016-02 | The impact on our condensed balance sheets is as follows: June 30, 2019 (in millions) As reported Balance Using Previous Standard Increase (Decrease) Balance sheet Assets Operating lease right-of-use assets $ 60 $ — $ 60 Liabilities Operating lease liabilities 17 — 17 Operating lease liabilities, noncurrent 55 11 44 Equity Accumulated deficit (229 ) — (229 ) |
Cash, Cash Equivalents and In_2
Cash, Cash Equivalents and Investments - (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Summary of Cash, Cash Equivalents and Investments | Our total cash, cash equivalents and investments are summarized below: June 30, 2019 December 31, 2018 (in millions) Cash and cash equivalents Available-for-sale marketable securities Total Cash and cash equivalents Available-for-sale marketable securities Certificate of deposits Total Cash and cash equivalents $ 219 $ — $ 219 $ 228 $ — $ — $ 228 Investments — 76 76 — 54 — 54 Restricted cash, cash equivalents and investments Insurance carriers' security deposits 14 — 14 15 — — 15 Payroll funds collected 519 — 519 783 — — 783 Collateral for health benefits claims 75 — 75 75 — — 75 Collateral for workers' compensation claims 63 1 64 66 1 — 67 Collateral to secure standby letter of credit — — — — — 2 2 Total restricted cash, cash equivalents and investments 671 1 672 939 1 2 942 Investments, noncurrent — 117 117 — 135 — 135 Restricted cash, cash equivalents and investments, noncurrent Collateral for workers' compensation claims 195 5 200 182 5 — 187 Total $ 1,085 $ 199 $ 1,284 $ 1,349 $ 195 $ 2 $ 1,546 |
Investments - (Tables)
Investments - (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized Cost, Gross Unrealized Gains and Losses, Fair Values of Investments | The amortized cost, gross unrealized gains, gross unrealized losses, and fair values of our investments as of June 30, 2019 and December 31, 2018 are presented below. June 30, 2019 December 31, 2018 (in millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Asset-backed securities $ 35 $ — $ — $ 35 $ 33 $ — $ — $ 33 Corporate bonds 94 1 — 95 99 — — 99 U.S. government agencies and government- sponsored agencies 5 — — 5 7 — — 7 U.S. treasuries 58 1 — 59 46 — — 46 Exchange traded fund 1 — — 1 1 — — 1 Other debt securities 4 — — 4 9 — — 9 Total $ 197 $ 2 $ — $ 199 $ 195 $ — $ — $ 195 |
Fair Value of Debt Investments by Contractual Maturity | The fair value of debt investments by contractual maturity are shown below: (in millions) June 30, 2019 One year or less $ 81 Over one year through five years 103 Over five years through ten years 7 Over ten years 7 Total fair value $ 198 |
Proceeds from available-for-sale securities | The gross proceeds from sales and maturities of AFS securities for the three and six months ended June 30, 2019 and June 30, 2018 are presented below. We had immaterial realized gains and losses from sales of investments for the three and six months ended June 30, 2019 and June 30, 2018 . Three Months Ended June 30, Six Months Ended June 30, (in millions) 2019 2018 2019 2018 Gross proceeds from sales $ 14 $ — $ 28 $ 39 Gross proceeds from maturities 19 10 36 24 |
Leases - (Tables)
Leases - (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Operating lease payments | Future minimum lease payments as of June 30, 2019 and December 31, 2018 were as follows: (in millions) June 30, 2019 (2) December 31, 2018 (3) 2019 (1) $ 10 $ 18 2020 18 17 2021 11 11 2022 10 9 2023 9 8 2024 6 5 2025 and thereafter 19 20 Total future minimum lease payments $ 83 $ 88 Less: imputed interest (11 ) N/A (4) Total operating lease liabilities 72 N/A (4) Current portion 17 N/A (4) Non-current portion 55 N/A (4) (1) The remaining payments as of June 30, 2019 exclude those made during the six months ended June 30, 2019 . (2) Presented in accordance with ASC 842, which excludes base payments of $4 million for leases that do not yet have a commencement date. (3) Presented in accordance with ASC 840. (4) N/A - Not Applicable under ASC 840. |
Accrued Workers' Compensation_2
Accrued Workers' Compensation Cost - (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Insurance [Abstract] | |
Summary of Activities in Liability for Unpaid Claims and Claims Adjustment Expenses | The following table summarizes the accrued workers’ compensation cost activity for the three and six months ended June 30, 2019 and 2018 : Three Months Ended Six Months Ended (in millions) 2019 2018 2019 2018 Total accrued costs, beginning of period $ 236 $ 250 $ 238 $ 255 Incurred Current year 16 19 35 39 Prior years (11 ) (6 ) (16 ) (13 ) Total incurred 5 13 19 26 Paid Current year (2 ) (2 ) (3 ) (2 ) Prior years (15 ) (17 ) (30 ) (35 ) Total paid (17 ) (19 ) (33 ) (37 ) Total accrued costs, end of period $ 224 $ 244 $ 224 $ 244 The following summarizes workers' compensation liabilities on the condensed consolidated balance sheets: (in millions) June 30, 2019 December 31, 2018 Total accrued costs, end of period $ 224 $ 238 Collateral paid to carriers and offset against accrued costs (12 ) (13 ) Total accrued costs, net of carrier collateral offset $ 212 $ 225 Payable in less than 1 year $ 64 $ 67 Payable in more than 1 year 148 158 Total accrued costs, net of carrier collateral offset $ 212 $ 225 |
Stockholders' Equity - (Tables)
Stockholders' Equity - (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Schedule of Common Stock | The following table presents a rollforward of our common stock for the three and six months ended June 30, 2019 and 2018 : Three Months Ended Six Months Ended 2019 2018 2019 2018 Shares issued and outstanding, beginning balance 70,079,747 70,363,251 70,596,559 69,818,392 Issuance of common stock from vested restricted stock units 213,991 389,875 500,710 1,000,141 Issuance of common stock from exercise of stock options 58,491 263,464 139,773 469,894 Issuance of common stock for employee stock purchase plan 112,623 84,525 112,623 84,525 Repurchase of common stock (392,700 ) (434,766 ) (1,175,609 ) (594,799 ) Awards effectively repurchased for required employee withholding taxes (81,007 ) (92,462 ) (182,911 ) (204,266 ) Shares issued and outstanding, ending balance 69,991,145 70,573,887 69,991,145 70,573,887 |
Restricted Stock Unit and Restricted Stock Award Activity Under Equity-Based Plans | The following table summarizes RSU and RSA activity under our equity-based plans for the six months ended June 30, 2019 : RSUs RSAs Number of Units Weighted-Average Grant Date Fair Value Number of Units Weighted-Average Grant Date Fair Value Nonvested at December 31, 2018 1,737,554 $ 32.83 346,792 $ 49.13 Granted 724,172 60.58 — — Vested (511,813 ) 30.34 (31,248 ) 50.61 Forfeited (106,737 ) 36.52 (11,103 ) 49.35 Nonvested at June 30, 2019 1,843,176 $ 44.18 304,441 $ 49.11 |
Performance Stock Unit and Performance Stock Award Activity Under Equity-Based Plans | The following table summarizes RSU and RSA activity under our equity-based plans for the six months ended June 30, 2019 : RSUs RSAs Number of Units Weighted-Average Grant Date Fair Value Number of Units Weighted-Average Grant Date Fair Value Nonvested at December 31, 2018 1,737,554 $ 32.83 346,792 $ 49.13 Granted 724,172 60.58 — — Vested (511,813 ) 30.34 (31,248 ) 50.61 Forfeited (106,737 ) 36.52 (11,103 ) 49.35 Nonvested at June 30, 2019 1,843,176 $ 44.18 304,441 $ 49.11 |
Stock-based Compensation Expense | Stock-based compensation expense and other disclosures for stock-based awards made to our employees pursuant to the equity plans was as follows: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2019 2018 2019 2018 Cost of providing services $ 2 $ 2 $ 4 $ 4 Sales and marketing 1 2 1 4 General and administrative 7 5 13 9 Systems development and programming costs 1 1 2 2 Total stock-based compensation expense $ 11 $ 10 $ 20 $ 19 |
Earnings Per Share (EPS) - (Tab
Earnings Per Share (EPS) - (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted EPS | The following table presents the computation of our basic and diluted EPS attributable to our common stock: Three Months Ended Six Months Ended (in millions, except per share data) 2019 2018 2019 2018 Net income $ 46 $ 58 $ 109 $ 112 Weighted average shares of common stock outstanding 70 70 70 70 Basic EPS $ 0.65 $ 0.82 $ 1.56 $ 1.59 Net income $ 46 $ 58 $ 109 $ 112 Weighted average shares of common stock outstanding 70 70 70 70 Dilutive effect of stock options and restricted stock units 1 3 1 2 Weighted average shares of common stock outstanding 71 73 71 72 Diluted EPS $ 0.64 $ 0.80 $ 1.53 $ 1.55 Common stock equivalents excluded from income per diluted share because of their anti-dilutive effect — — 1 1 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements - (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Financial Instruments by Significant Categories and Fair Value Measurement on a Recurring Basis | The following table summarizes our financial instruments by significant categories and fair value measurement on a recurring basis as of June 30, 2019 and December 31, 2018 . (in millions) Level 1 Level 2 Total June 30, 2019 Cash equivalents: Money market mutual funds $ 89 $ — 89 Total cash equivalents 89 — 89 Investments: Asset-backed securities — 35 35 Corporate bonds — 95 95 U.S. government agencies and government-sponsored agencies — 5 5 U.S. treasuries — 54 54 Other debt securities — 4 4 Total investments — 193 193 Restricted cash equivalents: Money market mutual funds 43 — 43 Commercial paper 18 — 18 Total restricted cash equivalents 61 — 61 Restricted investments: U.S. treasuries — 5 5 Exchange traded fund 1 — 1 Certificate of deposit — — — Total restricted investments 1 5 6 Total unrestricted and restricted cash equivalents and investments $ 151 $ 198 $ 349 (in millions) Level 1 Level 2 Total December 31, 2018 Cash equivalents Money market mutual funds $ 4 $ — $ 4 U.S. treasuries — 1 1 Total cash equivalents 4 1 5 Investments Asset-backed securities — 33 33 Corporate bonds — 99 99 U.S. government agencies and government-sponsored agencies — 7 7 U.S. treasuries — 41 41 Other debt securities — 9 9 Total investments — 189 189 Restricted cash equivalents: Money market mutual funds 48 — 48 Commercial paper 20 — 20 Total restricted cash equivalents 68 — 68 Restricted investments: U.S. treasuries — 5 5 Exchange traded fund 1 — 1 Certificate of deposit — 2 2 Total restricted investments 1 7 8 Total unrestricted and restricted cash equivalents and investments $ 73 $ 197 $ 270 |
Schedule of Cash Flow Hedging Instruments | The following table summarizes the fair value of our derivative instruments at June 30, 2019 : June 30, 2019 Fair Market Value (in millions) Hedge type Final settlement date Notional amount Other current assets Accounts payable and other current liabilities Derivatives designated as hedging instruments Collar - LIBOR Cash flow May 2022 $ 213 $ — $ — |
Schedule of Notional Amounts of Outstanding Derivative Positions | The following table summarizes the fair value of our derivative instruments at June 30, 2019 : June 30, 2019 Fair Market Value (in millions) Hedge type Final settlement date Notional amount Other current assets Accounts payable and other current liabilities Derivatives designated as hedging instruments Collar - LIBOR Cash flow May 2022 $ 213 $ — $ — |
Fair Value | The following table summarizes the fair value of our derivative instruments at June 30, 2019 : June 30, 2019 Fair Market Value (in millions) Hedge type Final settlement date Notional amount Other current assets Accounts payable and other current liabilities Derivatives designated as hedging instruments Collar - LIBOR Cash flow May 2022 $ 213 $ — $ — The pre-tax effect of derivative instruments for the three and six months ended June 30, 2019 is insignificant and we estimate that an insignificant amount of net derivative gains or losses included in other comprehensive income will be reclassified into earnings within the following 12 months. There were no cash flows associated with the derivative for the three months and six months ended June 30, 2019 . |
Description of Business and S_4
Description of Business and Significant Accounting Policies - Effects on cash flow due to new accounting pronouncements (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Operating activities | ||
Accounts receivable | $ 3 | $ 11 |
Unbilled revenue | (36) | 35 |
Prepaid income taxes | 0 | |
Prepaid expenses and other current assets | 0 | |
Prepaid expenses | (18) | (9) |
Workers' compensation collateral receivable | 0 | |
Accounts payable and other current liabilities | (11) | (28) |
Client deposits | 10 | (24) |
Accrued wages | 25 | (28) |
Accrued corporate wages | 0 | |
Accrued health insurance costs | (13) | (13) |
Accrued workers' compensation costs | 9 | (8) |
Workers' compensation loss reserves and other non-current liabilities | 0 | |
Payroll taxes payable and other payroll withholdings | (588) | |
Worksite employee related assets | 0 | |
Worksite employee related liabilities | 0 | |
Other assets | (30) | (45) |
Other liabilities | $ (2) | (1) |
As previously reported | ||
Operating activities | ||
Accounts receivable | 0 | |
Unbilled revenue | 0 | |
Prepaid income taxes | 2 | |
Prepaid expenses and other current assets | (23) | |
Prepaid expenses | 0 | |
Workers' compensation collateral receivable | (6) | |
Accounts payable and other current liabilities | (14) | |
Client deposits | 0 | |
Accrued wages | 0 | |
Accrued corporate wages | (5) | |
Accrued health insurance costs | 0 | |
Accrued workers' compensation costs | 0 | |
Workers' compensation loss reserves and other non-current liabilities | (4) | |
Payroll taxes payable and other payroll withholdings | 0 | |
Worksite employee related assets | 4 | |
Worksite employee related liabilities | (652) | |
Other assets | 0 | |
Other liabilities | 0 | |
Reclassified amounts | ||
Operating activities | ||
Accounts receivable | 11 | |
Unbilled revenue | 35 | |
Prepaid income taxes | (2) | |
Prepaid expenses and other current assets | 23 | |
Prepaid expenses | (9) | |
Workers' compensation collateral receivable | 6 | |
Accounts payable and other current liabilities | (14) | |
Client deposits | (24) | |
Accrued wages | (28) | |
Accrued corporate wages | 5 | |
Accrued health insurance costs | (13) | |
Accrued workers' compensation costs | (8) | |
Workers' compensation loss reserves and other non-current liabilities | 4 | |
Payroll taxes payable and other payroll withholdings | (588) | |
Worksite employee related assets | (4) | |
Worksite employee related liabilities | 652 | |
Other assets | (45) | |
Other liabilities | $ (1) |
Description of Business and S_5
Description of Business and Significant Accounting Policies - Effects on income due to new accounting pronouncements (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Depreciation | $ 0 | $ 0 | ||
Amortization of intangible assets | 0 | 0 | ||
Depreciation and amortization of intangible assets | 10 | 19 | ||
Interest expense, bank fees and other, net | 0 | 0 | ||
Interest expense, bank fees and other | (7) | (13) | ||
Interest income | 3 | 5 | ||
Other comprehensive income | 1 | 0 | ||
Comprehensive income | $ 47 | 59 | $ 110 | 112 |
As previously reported | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Depreciation | 8 | 16 | ||
Amortization of intangible assets | 2 | 3 | ||
Depreciation and amortization of intangible assets | 0 | 0 | ||
Interest expense, bank fees and other, net | (4) | (8) | ||
Interest expense, bank fees and other | 0 | 0 | ||
Interest income | 0 | 0 | ||
Other comprehensive income | 0 | 0 | ||
Comprehensive income | 58 | 112 | ||
Reclassified amounts | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Depreciation | (8) | (16) | ||
Amortization of intangible assets | (2) | (3) | ||
Depreciation and amortization of intangible assets | 10 | 19 | ||
Interest expense, bank fees and other, net | 4 | 8 | ||
Interest expense, bank fees and other | (7) | (13) | ||
Interest income | 3 | 5 | ||
Other comprehensive income | 1 | 0 | ||
Comprehensive income | $ 1 | $ 0 |
Description of Business and S_6
Description of Business and Significant Accounting Policies - Additional Information (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2019USD ($)segment | Dec. 31, 2018USD ($) | |
Product Information [Line Items] | ||
Number of reportable segments | segment | 1 | |
Prepaid Insurance | $ 39 | $ 33 |
Operating Lease, Weighted Average Discount Rate, Percent | 4.60% | |
Non-US | Revenue | Foreign Sales | ||
Product Information [Line Items] | ||
Percent of concentration risk | 1.00% | |
Health Care [Member] | ||
Product Information [Line Items] | ||
Prepaid Insurance | $ 51 | $ 50 |
Description of Business and S_7
Description of Business and Significant Accounting Policies - Effect of Adoption of ASU 2016-02 As Reported (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Operating lease right-of-use asset | $ 60 | $ 0 |
Operating lease liabilities | 17 | 0 |
Operating lease liabilities, noncurrent | 55 | 0 |
Accumulated deficit | (229) | $ (266) |
Balance Using Previous Standard | ||
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Operating lease right-of-use asset | 0 | |
Operating lease liabilities | 0 | |
Operating lease liabilities, noncurrent | 11 | |
Accumulated deficit | 0 | |
Accounting Standards Update 2016-02 | Increase (Decrease) | ||
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Operating lease right-of-use asset | 60 | |
Operating lease liabilities | 17 | |
Operating lease liabilities, noncurrent | 44 | |
Accumulated deficit | $ (229) |
Cash, Cash Equivalents and In_3
Cash, Cash Equivalents and Investments - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Cash and cash equivalents | $ 219 | $ 228 |
Investments | 76 | 54 |
Restricted cash, cash equivalents and investments | 672 | 942 |
Investments, noncurrent | 117 | 135 |
Restricted cash, cash equivalents and investments, noncurrent | 200 | 187 |
Total unrestricted and restricted cash equivalents and investments | 1,284 | 1,546 |
Cash and cash equivalents | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Cash and cash equivalents | 219 | 228 |
Investments | 0 | 0 |
Restricted cash, cash equivalents and investments | 671 | 939 |
Investments, noncurrent | 0 | 0 |
Total unrestricted and restricted cash equivalents and investments | 1,085 | 1,349 |
Available-for-sale marketable securities | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Investments | 76 | 54 |
Restricted cash, cash equivalents and investments | 1 | 1 |
Investments, noncurrent | 117 | 135 |
Total unrestricted and restricted cash equivalents and investments | 199 | 195 |
Certificate of deposits | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Cash and cash equivalents | 0 | |
Investments | 0 | |
Restricted cash, cash equivalents and investments | 2 | |
Investments, noncurrent | 0 | |
Total unrestricted and restricted cash equivalents and investments | 2 | |
Insurance carriers' security deposits | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash, cash equivalents and investments | 14 | 15 |
Insurance carriers' security deposits | Cash and cash equivalents | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash, cash equivalents and investments | 14 | 15 |
Insurance carriers' security deposits | Available-for-sale marketable securities | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash, cash equivalents and investments | 0 | 0 |
Insurance carriers' security deposits | Certificate of deposits | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash, cash equivalents and investments | 0 | |
Payroll funds collected | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash, cash equivalents and investments | 519 | 783 |
Payroll funds collected | Cash and cash equivalents | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash, cash equivalents and investments | 519 | 783 |
Payroll funds collected | Available-for-sale marketable securities | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash, cash equivalents and investments | 0 | 0 |
Payroll funds collected | Certificate of deposits | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash, cash equivalents and investments | 0 | |
Collateral for health benefits claims | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash, cash equivalents and investments | 75 | 75 |
Collateral for health benefits claims | Cash and cash equivalents | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash, cash equivalents and investments | 75 | 75 |
Collateral for health benefits claims | Available-for-sale marketable securities | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash, cash equivalents and investments | 0 | 0 |
Collateral for health benefits claims | Certificate of deposits | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash, cash equivalents and investments | 0 | |
Collateral for workers' compensation claims | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash, cash equivalents and investments | 64 | 67 |
Restricted cash, cash equivalents and investments, noncurrent | 200 | 187 |
Collateral for workers' compensation claims | Cash and cash equivalents | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash, cash equivalents and investments | 63 | 66 |
Restricted cash, cash equivalents and investments, noncurrent | 195 | 182 |
Collateral for workers' compensation claims | Available-for-sale marketable securities | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash, cash equivalents and investments | 1 | 1 |
Restricted cash, cash equivalents and investments, noncurrent | 5 | 5 |
Collateral for workers' compensation claims | Certificate of deposits | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash, cash equivalents and investments | 0 | |
Restricted cash, cash equivalents and investments, noncurrent | 0 | |
Collateral to secure standby letter of credit | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash, cash equivalents and investments | 0 | 2 |
Collateral to secure standby letter of credit | Cash and cash equivalents | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash, cash equivalents and investments | 0 | 0 |
Collateral to secure standby letter of credit | Available-for-sale marketable securities | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash, cash equivalents and investments | $ 0 | 0 |
Collateral to secure standby letter of credit | Certificate of deposits | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash, cash equivalents and investments | $ 2 |
Investments - Amortized Cost, G
Investments - Amortized Cost, Gross Unrealized Gains and Losses, Fair Values of Investments (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Debt and Equity Securities | ||
Amortized Cost | $ 197 | $ 195 |
Gross Unrealized Gains | 2 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 199 | 195 |
Asset-backed securities | ||
Debt Securities | ||
Amortized Cost | 35 | 33 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 35 | 33 |
Corporate bonds | ||
Debt Securities | ||
Amortized Cost | 94 | 99 |
Gross Unrealized Gains | 1 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 95 | 99 |
U.S. government agencies and government- sponsored agencies | ||
Debt Securities | ||
Amortized Cost | 5 | 7 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 5 | 7 |
U.S. treasuries | ||
Debt Securities | ||
Amortized Cost | 58 | 46 |
Gross Unrealized Gains | 1 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 59 | 46 |
Exchange traded fund | ||
Equity Securities | ||
Amortized Cost | 1 | 1 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 1 | 1 |
Other debt securities | ||
Debt Securities | ||
Amortized Cost | 4 | 9 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 4 | $ 9 |
Investments - Fair Value of Deb
Investments - Fair Value of Debt Investments by Contractual Maturity (Details) $ in Millions | Jun. 30, 2019USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
One year or less | $ 81 |
Over one year through five years | 103 |
Over five years through ten years | 7 |
Over ten years | 7 |
Total fair value | $ 198 |
Investments - Proceeds from ava
Investments - Proceeds from available-for-sale securities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Gross proceeds from sales | $ 14 | $ 0 | $ 28 | $ 39 |
Gross proceeds from maturities | $ 19 | $ 10 | $ 36 | $ 24 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019USD ($)Lease | Jun. 30, 2019USD ($)Lease | Dec. 31, 2018USD ($) | |
Operating Leased Assets [Line Items] | |||
Operating lease expense | $ 5 | $ 10 | |
Operating lease payments | 4 | 8 | |
Operating lease right-of-use asset | 5 | 17 | |
Future Minimum Payments Due | $ 4 | $ 4 | |
Lease Term ( in years ) | 6 years 2 months 12 days | 6 years 2 months 12 days | |
Renewal Term ( in years ) | 15 years | 15 years | |
Less: imputed interest | $ 11 | $ 11 | |
Operating lease liabilities | 17 | 17 | $ 0 |
Operating lease liabilities, noncurrent | $ 55 | $ 55 | $ 0 |
Number of leases | Lease | 2 | 2 | |
Lease not yet commenced term (in years) | 5 years | 5 years | |
Payments | $ 4 | $ 4 | |
Minimum | |||
Operating Leased Assets [Line Items] | |||
Term of Contract ( in years ) | 1 year | 1 year | |
Maximum | |||
Operating Leased Assets [Line Items] | |||
Term of Contract ( in years ) | 9 years 3 months 18 days | 9 years 3 months 18 days |
Leases - Operating lease paymen
Leases - Operating lease payments (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
2019 | $ 10 | $ 18 |
2020 | 18 | 17 |
2021 | 11 | 11 |
2022 | 10 | 9 |
2023 | 9 | 8 |
2024 | 6 | 5 |
2025 and thereafter | 19 | 20 |
Total future minimum lease payments | 83 | 88 |
Less: imputed interest | (11) | |
Total operating lease liabilities | 72 | |
Operating lease liabilities | 17 | 0 |
Operating lease liabilities, noncurrent | 55 | $ 0 |
Future Minimum Payments Due | $ 4 |
Accrued Workers' Compensation_3
Accrued Workers' Compensation Cost - Summary of Workers' Compensation Loss Reserve Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||
Total accrued costs, beginning of period | $ 236 | $ 250 | $ 238 | $ 255 |
Incurred | ||||
Current year | 16 | 19 | 35 | 39 |
Prior years | (11) | (6) | (16) | (13) |
Total incurred | 5 | 13 | 19 | 26 |
Paid | ||||
Current year | (2) | (2) | (3) | (2) |
Prior years | (15) | (17) | (30) | (35) |
Total paid | (17) | (19) | (33) | (37) |
Total accrued costs, end of period | $ 224 | $ 244 | $ 224 | $ 244 |
Accrued Workers' Compensation_4
Accrued Workers' Compensation Cost - Summary of Workers' Compensation Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Insurance [Abstract] | ||||||
Total accrued costs, end of period | $ 224 | $ 236 | $ 238 | $ 244 | $ 250 | $ 255 |
Collateral paid to carriers and offset against accrued costs | (12) | (13) | ||||
Total accrued costs, net of carrier collateral offset | 212 | 225 | ||||
Payable in less than 1 year (net of collateral paid to carriers of $3 at June 30, 2019 and December 31, 2018) | 64 | 67 | ||||
Payable in more than 1 year (net of collateral paid to carriers of $9 and $10 at June 30, 2019 and December 31, 2018, respectively) | $ 148 | $ 158 |
Accrued Workers' Compensation_5
Accrued Workers' Compensation Cost - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Financial Guarantee Insurance Contracts, Claim Liability [Line Items] | ||
Collateral held by insurance carriers | $ 55 | $ 57 |
Liability For Unpaid Claims And Claims Adjustment Expense, Collateral | $ 12 | $ 13 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of common stock (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares issued beginning balance (In shares) | 70,079,747 | 70,363,251 | 70,596,559 | 69,818,392 |
Repurchase of common stock (in shares) | (392,700) | (434,766) | (1,175,609) | (594,799) |
Awards effectively repurchased for required employee withholding taxes (in shares) | (81,007) | (92,462) | (182,911) | (204,266) |
Shares issued ending balance (In shares) | 69,991,145 | 70,573,887 | 69,991,145 | 70,573,887 |
Issuance of common stock from vested restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Issuance of common stock from vested restricted stock units (in shares) | 213,991 | 389,875 | 500,710 | 1,000,141 |
Issuance of common stock from exercise of stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Issuance of common stock from exercise of stock options (in shares) | 58,491 | 263,464 | 139,773 | 469,894 |
Issuance of common stock for employee stock purchase plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Issuance of common stock for employee stock purchase plan (in shares) | 112,623 | 84,525 | 112,623 | 84,525 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Feb. 06, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares available for grant (in shares) | 2,839,430 | 2,839,430 | |||
Authorized Amount | $ 300 | ||||
Repurchase of common stock (in shares) | 392,700 | 434,766 | 1,175,609 | 594,799 | |
Repurchase of common stock | $ 62 | ||||
Amount available for further repurchases under stock repurchase program | $ 313 | $ 313 | |||
Time-Based Restricted Stock Units and Restricted Stock Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period (in years) | 4 years | ||||
Performance-Based Restricted Stock Units and Restricted Stock Awards [Member] | Tranche 1 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period (in years) | 1 year | ||||
Vesting percentage (as a percent) | 50.00% | ||||
Minimum | Time-Based Restricted Stock Units and Restricted Stock Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 0.00% | ||||
Maximum | Time-Based Restricted Stock Units and Restricted Stock Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 200.00% |
Stockholders' Equity - RSU, RSA
Stockholders' Equity - RSU, RSA Activity Under Equity-Based Plans (Details) | 6 Months Ended |
Jun. 30, 2019$ / sharesshares | |
RSUs | |
Number of Units | |
Nonvested At Dec 31, 2018 (in shares) | shares | 1,737,554 |
Granted (in shares) | shares | 724,172 |
Vested (in shares) | shares | (511,813) |
Forfeited (in shares) | shares | (106,737) |
Nonvested At June 30, 2019 (in shares) | shares | 1,843,176 |
Weighted-Average Grant Date Fair Value | |
Nonvested at Dec 31, 2018 (in dollars per share) | $ / shares | $ 32.83 |
Granted (in dollars per share) | $ / shares | 60.58 |
Vested (in dollars per share) | $ / shares | 30.34 |
Forfeited (in dollars per share) | $ / shares | 36.52 |
Nonvested at Jun 30, 2019 (in dollars per share) | $ / shares | $ 44.18 |
RSAs | |
Number of Units | |
Nonvested At Dec 31, 2018 (in shares) | shares | 346,792 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | (31,248) |
Forfeited (in shares) | shares | (11,103) |
Nonvested At June 30, 2019 (in shares) | shares | 304,441 |
Weighted-Average Grant Date Fair Value | |
Nonvested at Dec 31, 2018 (in dollars per share) | $ / shares | $ 49.13 |
Granted (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 50.61 |
Forfeited (in dollars per share) | $ / shares | 49.35 |
Nonvested at Jun 30, 2019 (in dollars per share) | $ / shares | $ 49.11 |
Stockholders' Equity - Stock-Ba
Stockholders' Equity - Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 11 | $ 10 | $ 20 | $ 19 |
Cost of providing services | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 2 | 2 | 4 | 4 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 1 | 2 | 1 | 4 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 7 | 5 | 13 | 9 |
Systems development and programming costs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 1 | $ 1 | $ 2 | $ 2 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | Jan. 18, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 |
Income Tax Contingency [Line Items] | |||||
Effective income tax rate | 17.00% | 19.00% | 21.00% | 19.00% | |
Unrecognized Tax Benefits | $ 1 | $ 1 | |||
Amount awarded | $ 15 | ||||
Internal Revenue Service | |||||
Income Tax Contingency [Line Items] | |||||
Income taxes paid | 11 | ||||
Interest payment | $ 4 | $ 4 |
Earnings Per Share (EPS) - Comp
Earnings Per Share (EPS) - Computation of Basic and Diluted EPS Attributable to Common Stock (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Basic EPS | ||||
Net income | $ 46 | $ 58 | $ 109 | $ 112 |
Weighted average shares of common stock outstanding (in shares) | 69,703,792 | 70,448,809 | 69,806,319 | 70,250,273 |
Basic earnings per share (in dollars per share) | $ 0.65 | $ 0.82 | $ 1.56 | $ 1.59 |
Diluted EPS | ||||
Net income | $ 46 | $ 58 | $ 109 | $ 112 |
Weighted average shares of common stock outstanding (in shares) | 69,703,792 | 70,448,809 | 69,806,319 | 70,250,273 |
Dilutive effect of stock options and restricted stock units (in shares) | 1,000,000 | 3,000,000 | 1,000,000 | 2,000,000 |
Weighted average shares of common stock outstanding (in shares) | 71,074,751 | 72,561,891 | 71,151,219 | 72,404,539 |
Diluted earnings per share (in dollars per share) | $ 0.64 | $ 0.80 | $ 1.53 | $ 1.55 |
Common stock equivalents excluded from income per diluted share because of their anti-dilutive effect ( in shares ) | 0 | 0 | 1,000,000 | 1,000,000 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements - Summary of Financial Instruments by Significant Categories and Fair Value Measurement on a Recurring Basis (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Financial Instruments [Line Items] | ||
Total unrestricted and restricted cash equivalents and investments | $ 1,284 | $ 1,546 |
Fair Value Measurement on a Recurring Basis | ||
Fair Value, Financial Instruments [Line Items] | ||
Cash equivalents | 89 | 5 |
Investments | 193 | 189 |
Restricted cash equivalents | 61 | 68 |
Restricted investments | 6 | 8 |
Total unrestricted and restricted cash equivalents and investments | 349 | 270 |
Fair Value Measurement on a Recurring Basis | Level 1 | ||
Fair Value, Financial Instruments [Line Items] | ||
Cash equivalents | 89 | 4 |
Investments | 0 | 0 |
Restricted cash equivalents | 61 | 68 |
Restricted investments | 1 | 1 |
Total unrestricted and restricted cash equivalents and investments | 151 | 73 |
Fair Value Measurement on a Recurring Basis | Level 2 | ||
Fair Value, Financial Instruments [Line Items] | ||
Cash equivalents | 0 | 1 |
Investments | 193 | 189 |
Restricted cash equivalents | 0 | 0 |
Restricted investments | 5 | 7 |
Total unrestricted and restricted cash equivalents and investments | 198 | 197 |
Asset-backed securities | Fair Value Measurement on a Recurring Basis | ||
Fair Value, Financial Instruments [Line Items] | ||
Investments | 35 | 33 |
Asset-backed securities | Fair Value Measurement on a Recurring Basis | Level 1 | ||
Fair Value, Financial Instruments [Line Items] | ||
Investments | 0 | 0 |
Asset-backed securities | Fair Value Measurement on a Recurring Basis | Level 2 | ||
Fair Value, Financial Instruments [Line Items] | ||
Investments | 35 | 33 |
Corporate bonds | Fair Value Measurement on a Recurring Basis | ||
Fair Value, Financial Instruments [Line Items] | ||
Investments | 95 | 99 |
Corporate bonds | Fair Value Measurement on a Recurring Basis | Level 1 | ||
Fair Value, Financial Instruments [Line Items] | ||
Investments | 0 | 0 |
Corporate bonds | Fair Value Measurement on a Recurring Basis | Level 2 | ||
Fair Value, Financial Instruments [Line Items] | ||
Investments | 95 | 99 |
U.S. government agencies and government- sponsored agencies | Fair Value Measurement on a Recurring Basis | ||
Fair Value, Financial Instruments [Line Items] | ||
Investments | 5 | 7 |
U.S. government agencies and government- sponsored agencies | Fair Value Measurement on a Recurring Basis | Level 1 | ||
Fair Value, Financial Instruments [Line Items] | ||
Investments | 0 | 0 |
U.S. government agencies and government- sponsored agencies | Fair Value Measurement on a Recurring Basis | Level 2 | ||
Fair Value, Financial Instruments [Line Items] | ||
Investments | 5 | 7 |
U.S. treasuries | Fair Value Measurement on a Recurring Basis | ||
Fair Value, Financial Instruments [Line Items] | ||
Investments | 54 | 41 |
Restricted investments | 5 | 5 |
U.S. treasuries | Fair Value Measurement on a Recurring Basis | Level 1 | ||
Fair Value, Financial Instruments [Line Items] | ||
Investments | 0 | 0 |
Restricted investments | 0 | 0 |
U.S. treasuries | Fair Value Measurement on a Recurring Basis | Level 2 | ||
Fair Value, Financial Instruments [Line Items] | ||
Investments | 54 | 41 |
Restricted investments | 5 | 5 |
Other debt securities | Fair Value Measurement on a Recurring Basis | ||
Fair Value, Financial Instruments [Line Items] | ||
Investments | 4 | 9 |
Other debt securities | Fair Value Measurement on a Recurring Basis | Level 1 | ||
Fair Value, Financial Instruments [Line Items] | ||
Investments | 0 | 0 |
Other debt securities | Fair Value Measurement on a Recurring Basis | Level 2 | ||
Fair Value, Financial Instruments [Line Items] | ||
Investments | 4 | 9 |
Exchange traded fund | Fair Value Measurement on a Recurring Basis | ||
Fair Value, Financial Instruments [Line Items] | ||
Restricted investments | 1 | 1 |
Exchange traded fund | Fair Value Measurement on a Recurring Basis | Level 1 | ||
Fair Value, Financial Instruments [Line Items] | ||
Restricted investments | 1 | 1 |
Exchange traded fund | Fair Value Measurement on a Recurring Basis | Level 2 | ||
Fair Value, Financial Instruments [Line Items] | ||
Restricted investments | 0 | 0 |
Certificate of deposit | ||
Fair Value, Financial Instruments [Line Items] | ||
Total unrestricted and restricted cash equivalents and investments | 2 | |
Certificate of deposit | Fair Value Measurement on a Recurring Basis | ||
Fair Value, Financial Instruments [Line Items] | ||
Restricted investments | 0 | 2 |
Certificate of deposit | Fair Value Measurement on a Recurring Basis | Level 1 | ||
Fair Value, Financial Instruments [Line Items] | ||
Restricted investments | 0 | 0 |
Certificate of deposit | Fair Value Measurement on a Recurring Basis | Level 2 | ||
Fair Value, Financial Instruments [Line Items] | ||
Restricted investments | 0 | 2 |
Money market mutual funds | Fair Value Measurement on a Recurring Basis | ||
Fair Value, Financial Instruments [Line Items] | ||
Cash equivalents | 89 | 4 |
Restricted cash equivalents | 43 | 48 |
Money market mutual funds | Fair Value Measurement on a Recurring Basis | Level 1 | ||
Fair Value, Financial Instruments [Line Items] | ||
Cash equivalents | 89 | 4 |
Restricted cash equivalents | 43 | 48 |
Money market mutual funds | Fair Value Measurement on a Recurring Basis | Level 2 | ||
Fair Value, Financial Instruments [Line Items] | ||
Cash equivalents | 0 | 0 |
Restricted cash equivalents | 0 | 0 |
U.S. treasuries | Fair Value Measurement on a Recurring Basis | ||
Fair Value, Financial Instruments [Line Items] | ||
Cash equivalents | 1 | |
U.S. treasuries | Fair Value Measurement on a Recurring Basis | Level 1 | ||
Fair Value, Financial Instruments [Line Items] | ||
Cash equivalents | 0 | |
U.S. treasuries | Fair Value Measurement on a Recurring Basis | Level 2 | ||
Fair Value, Financial Instruments [Line Items] | ||
Cash equivalents | 1 | |
Commercial paper | Fair Value Measurement on a Recurring Basis | ||
Fair Value, Financial Instruments [Line Items] | ||
Restricted cash equivalents | 18 | 20 |
Commercial paper | Fair Value Measurement on a Recurring Basis | Level 1 | ||
Fair Value, Financial Instruments [Line Items] | ||
Restricted cash equivalents | 18 | 20 |
Commercial paper | Fair Value Measurement on a Recurring Basis | Level 2 | ||
Fair Value, Financial Instruments [Line Items] | ||
Restricted cash equivalents | $ 0 | $ 0 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurements - Fair Value (Details) $ in Millions | Jun. 30, 2019USD ($) |
Debt Securities, Available-for-sale [Line Items] | |
Notional amount | $ 213 |
Other current assets | |
Debt Securities, Available-for-sale [Line Items] | |
Other current assets | 0 |
Accounts payable and other current liabilities | |
Debt Securities, Available-for-sale [Line Items] | |
Other current assets | $ 0 |
Uncategorized Items - tnet-0630
Label | Element | Value |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 3,000,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 0 |