Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 21, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-36373 | |
Entity Registrant Name | TRINET GROUP, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 95-3359658 | |
Entity Address, Address Line One | One Park Place, Suite 600 | |
Entity Address, City or Town | Dublin, | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94568 | |
City Area Code | 510 | |
Local Phone Number | 352-5000 | |
Title of 12(b) Security | Common stock par value $0.000025 per share | |
Trading Symbol | TNET | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 67,290,388 | |
Entity Central Index Key | 0000937098 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 43921 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Total revenues | $ 1,048 | $ 934 |
Costs and operating expenses: | ||
Insurance costs | 765 | 683 |
Cost of providing services | 64 | 64 |
Sales and marketing | 46 | 46 |
General and administrative | 33 | 36 |
Systems development and programming | 9 | 12 |
Depreciation and amortization of intangible assets | 11 | 11 |
Total costs and operating expenses | 928 | 852 |
Operating income | 120 | 82 |
Other income (expense): | ||
Interest expense, bank fees and other | (4) | (5) |
Interest income | 5 | 6 |
Income before provision for income taxes | 121 | 83 |
Income taxes | 30 | 20 |
Net income | 91 | 63 |
Other comprehensive income, net of income taxes | 2 | 0 |
Comprehensive income | $ 93 | $ 63 |
Net income per share: | ||
Basic (in dollars per share) | $ 1.32 | $ 0.91 |
Diluted (in dollars per share) | $ 1.31 | $ 0.89 |
Weighted average shares: | ||
Basic (in shares) | 68 | 70 |
Diluted (in shares) | 69 | 71 |
Professional service revenues | ||
Total revenues | $ 156 | $ 136 |
Insurance service revenues | ||
Total revenues | $ 892 | $ 798 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 521 | $ 213 |
Investments | 65 | 68 |
Restricted cash, cash equivalents and investments | 779 | 1,180 |
Accounts receivable, net | 9 | 9 |
Unbilled revenue, net | 380 | 285 |
Prepaid expenses, net | 55 | 52 |
Other current assets | 83 | 64 |
Total current assets | 1,892 | 1,871 |
Restricted cash, cash equivalents and investments, noncurrent | 204 | 212 |
Investments, noncurrent | 130 | 125 |
Property, equipment and software, net | 82 | 85 |
Operating lease right-of-use asset | 52 | 55 |
Goodwill | 289 | 289 |
Other intangible assets, net | 14 | 15 |
Other assets | 102 | 96 |
Total assets | 2,765 | 2,748 |
Current liabilities: | ||
Accounts payable and other current liabilities | 63 | 31 |
Revolving credit agreement borrowings | 234 | 0 |
Long-term debt | 22 | 22 |
Client deposits | 38 | 44 |
Accrued wages | 429 | 391 |
Accrued health insurance costs, net | 165 | 167 |
Accrued workers' compensation costs, net | 63 | 61 |
Payroll tax liabilities and other payroll withholdings | 567 | 901 |
Operating lease liabilities | 16 | 17 |
Insurance premiums and other payables | 11 | 9 |
Total current liabilities | 1,608 | 1,643 |
Long-term debt, noncurrent | 364 | 369 |
Accrued workers' compensation costs, noncurrent, net | 145 | 144 |
Deferred taxes | 62 | 61 |
Operating lease liabilities, noncurrent | 45 | 48 |
Other non-current liabilities | 8 | 8 |
Total liabilities | 2,232 | 2,273 |
Commitments and contingencies (see Note 7) | ||
Stockholders’ equity: | ||
Preferred stock | 0 | 0 |
Common stock and additional paid-in capital | 703 | 694 |
Accumulated deficit | (172) | (219) |
Accumulated other comprehensive income | 2 | 0 |
Total stockholders' equity | 533 | 475 |
Total liabilities & stockholders' equity | $ 2,765 | $ 2,748 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
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) | 68,470,050 | 69,065,491 |
Common stock, shares outstanding (in shares) | 68,470,050 | 69,065,491 |
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, 2018 | $ 375 | $ 641 | $ (266) | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of common stock from exercise of stock options | 1 | |||
Stock-based compensation expense | 9 | |||
Net income | 63 | 63 | ||
Repurchase of common stock | (38) | |||
Awards effectively repurchased for required employee withholding taxes | (4) | |||
Other comprehensive income | 0 | |||
Balance at Mar. 31, 2019 | 406 | 651 | (245) | 0 |
Balance at Dec. 31, 2019 | 475 | 694 | (219) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of common stock from exercise of stock options | 0 | |||
Stock-based compensation expense | 9 | |||
Net income | 91 | 91 | ||
Repurchase of common stock | (40) | (40) | ||
Awards effectively repurchased for required employee withholding taxes | (4) | |||
Other comprehensive income | 2 | |||
Balance at Mar. 31, 2020 | $ 533 | $ 703 | $ (172) | $ 2 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating activities | ||
Net income | $ 91 | $ 63 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 15 | 18 |
Noncash lease expense | 4 | 0 |
Stock based compensation | 9 | 9 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 0 | 1 |
Unbilled revenue, net | (95) | (9) |
Prepaid expenses, net | (3) | (12) |
Accounts payable and other current liabilities | 29 | 9 |
Client deposits | (6) | (19) |
Accrued wages | 38 | 17 |
Accrued health insurance costs, net | (2) | 0 |
Accrued workers' compensation costs, net | 3 | (2) |
Payroll taxes payable and other payroll withholdings | (334) | (180) |
Operating lease liabilities | (5) | (4) |
Other assets | (28) | (30) |
Other liabilities | 2 | (3) |
Net cash used in operating activities | (282) | (142) |
Investing activities | ||
Purchases of marketable securities | (155) | (30) |
Proceeds from sales and maturities of marketable securities | 67 | 31 |
Acquisitions of property and equipment | (6) | (12) |
Net cash used in investing activities | (94) | (11) |
Financing activities | ||
Repurchase of common stock | (40) | (38) |
Proceeds from issuance of common stock | 0 | 1 |
Awards effectively repurchased for required employee withholding taxes | (3) | (4) |
Proceeds from revolving credit agreement borrowings | 234 | 0 |
Repayment of debt | (6) | (6) |
Net cash provided by (used in) financing activities | 185 | (47) |
Net decrease in cash and cash equivalents, unrestricted and restricted | (191) | (200) |
Cash and cash equivalents, unrestricted and restricted: | ||
Beginning of period | 1,456 | 1,349 |
End of period | 1,265 | 1,149 |
Supplemental disclosures of cash flow information | ||
Interest paid | 3 | 4 |
Income taxes paid, net | 1 | 1 |
Supplemental schedule of noncash investing and financing activities | ||
Payable for purchase of property and equipment | $ 1 | $ 5 |
Description of Business and Sig
Description of Business and Significant Accounting Policies - (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
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 (WSEs), 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 months ended March 31, 2020 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, 2019 ( 2019 Form 10-K). 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. 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. Revenue Recognition Unbilled Revenue We recognize WSE payroll and payroll tax liabilities in the period in which the WSEs perform work. When clients' pay periods cross reporting periods, we accrue the portion of the unpaid WSE payroll where we assume, under state regulations, the obligation for the payment of wages and the corresponding payroll tax liabilities associated with the work performed prior to period-end. These estimated payroll and payroll tax liabilities are recorded in accrued wages. The associated receivables, including estimated revenues, offset by advance collections from clients and an allowance for credit losses, are recorded as unbilled revenue. As of March 31, 2020 , advance collections included in unbilled revenue were $47 million . Investments Our investments are primarily classified as available-for-sale and are carried at estimated fair value. Unrealized gains and losses are reported as a component of accumulated other comprehensive income, net of deferred income taxes. The amortized cost of debt investments is adjusted for amortization of premiums and accretion of discounts from the date of purchase to the earliest call date for premiums or the maturity date for discounts. Such amortization is included in interest income as an addition to or deduction from the coupon interest earned on the investments. We use the specific identification method to determine realized gains and losses on the sale of available-for-sale securities. Realized gains and losses are included in interest income in the accompanying consolidated statements of income and comprehensive income. We assess our investments for credit impairment. We review several factors to determine whether an unrealized loss is credit related, such as the financial condition and future prospects of the issuer. To the extent that a security’s amortized cost basis exceeds the present value of the cash flows expected to be collected from the security, an allowance for credit losses will be recognized. If management intends to sell or will more likely than not be required to sell the security before any anticipated recovery, a write down will be recognized in earnings measured as the entire difference between the amortized cost and the then-current fair value. We have investments within our unrestricted and our restricted accounts. Unrestricted investments are recorded on the balance sheet as current or noncurrent based upon the remaining time to maturity, and investments subject to restrictions are classified as current or noncurrent based on the expected payout of the related liability. Accounts Receivable Our accounts receivable represents outstanding gross billings to clients, net of an allowance for estimated credit losses. We require our clients to prefund payroll and related liabilities before payroll is processed or due for payment. If a client fails to fund payroll or misses the funding cut-off, at our sole discretion, we may pay the payroll and the resulting amounts due to us are recognized as accounts receivable. When client payment is received in advance of our performance under the contract, such amount is recorded as client deposits. We establish an allowance for credit losses based on the credit quality of clients, current economic conditions, the age of the accounts receivable balances, historical experience, and other factors that may affect clients’ ability to pay, and charge-off amounts against the allowance when they are deemed uncollectible. The allowance was immaterial at March 31, 2020 and December 31, 2019 . 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 three months ended March 31, 2020 , a 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 external 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 March 31, 2020 and December 31, 2019 , prepayments offsetting accrued health insurance costs were $40 million and $39 million , respectively. When the prepaid amount is in excess of our recorded liability the net asset position is included in prepaid expenses. As of March 31, 2020 and December 31, 2019 , accrued health insurance costs offsetting prepaid expenses were $58 million and $52 million , respectively. Recent Accounting Pronouncements Recently adopted accounting guidance We adopted ASU 2016-13 - Financial Instruments - Credit Losses (ASC Topic 326) effective January 1, 2020 using a modified retrospective approach, 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, 2020 with unchanged comparative periods. We are required to use forward-looking information when evaluating an allowance for our accounts receivable, unbilled revenue and other financial assets measured at amortized cost. ASC Topic 326 also modified the impairment guidance for available-for-sale debt securities to require an allowance for credit losses. The adoption of ASC Topic 326 did not have a material effect on our financial statements. |
Cash, Cash Equivalents and Inve
Cash, Cash Equivalents and Investments - (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
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: March 31, 2020 December 31, 2019 (in millions) Cash and cash equivalents Available-for-sale marketable securities Certificate of deposits Total Cash and cash equivalents Available-for-sale marketable securities Certificate of deposits Total Cash and cash equivalents $ 521 $ — $ — $ 521 $ 213 $ — $ — $ 213 Investments — 65 — 65 — 68 — 68 Restricted cash, cash equivalents and investments: Payroll funds collected 611 — — 611 1,018 — — 1,018 Collateral for health benefits claims 27 76 — 103 98 — — 98 Collateral for workers' compensation claims 63 — — 63 62 — — 62 Other security deposits 2 — — 2 2 — — 2 Total restricted cash, cash equivalents and investments 703 76 — 779 1,180 — — 1,180 Investments, noncurrent — 130 — 130 — 125 — 125 Restricted cash, cash equivalents and investments, noncurrent Collateral for workers' compensation claims 41 162 1 204 63 148 1 212 Total $ 1,265 $ 433 $ 1 $ 1,699 $ 1,456 $ 341 $ 1 $ 1,798 |
Investments - (Notes)
Investments - (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | INVESTMENTS The amortized cost, gross unrealized gains, gross unrealized losses, and fair values of our AFS investments as of March 31, 2020 and December 31, 2019 are presented below. March 31, 2020 December 31, 2019 (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 $ 30 $ — $ — $ 30 $ 30 $ — $ — $ 30 Corporate bonds 126 1 (1 ) 126 123 1 — 124 U.S. government agencies and government- sponsored agencies 24 1 — 25 14 — — 14 U.S. treasuries 239 5 — 244 163 — — 163 Certificate of deposit 1 — — 1 1 — — 1 Other debt securities 8 — — 8 10 — — 10 Total $ 428 $ 7 $ (1 ) $ 434 $ 341 $ 1 $ — $ 342 Gross unrealized losses were immaterial at March 31, 2020 and December 31, 2019 . 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) March 31, 2020 One year or less $ 94 Over one year through five years 310 Over five years through ten years 9 Over ten years 21 Total fair value $ 434 The gross proceeds from sales and maturities of AFS securities for the three months ended March 31, 2020 and March 31, 2019 are presented below. We had immaterial gross realized gains and losses from sales of investments for the three months ended March 31, 2020 and March 31, 2019 . Three Months Ended (in millions) 2020 2019 Gross proceeds from sales $ 40 $ 14 Gross proceeds from maturities 27 17 Total $ 67 $ 31 |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
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 securities. 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. We did not have any Level 3 financial instruments recognized in our balance sheet as of March 31, 2020 and December 31, 2019 . There were no transfers between levels as of March 31, 2020 and December 31, 2019 . 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 March 31, 2020 and December 31, 2019 . (in millions) Level 1 Level 2 Total March 31, 2020 Cash equivalents: Money market mutual funds $ 328 $ — 328 Total cash equivalents 328 — 328 Investments: Asset-backed securities — 30 30 Corporate bonds — 95 95 U.S. government agencies and government-sponsored agencies — 7 7 U.S. treasuries — 55 55 Other debt securities — 8 8 Total investments — 195 195 Restricted cash equivalents: Money market mutual funds 90 — 90 Certificate of deposit — 1 1 Commercial paper 14 — 14 Total restricted cash equivalents 104 1 105 Restricted investments: Corporate bonds — 31 31 U.S. government agencies and government-sponsored agencies — 18 18 U.S. treasuries — 189 189 Certificate of deposit — 1 1 Total restricted investments — 239 239 Total cash equivalents and investments and restricted cash equivalents and investments $ 432 $ 435 $ 867 (in millions) Level 1 Level 2 Total December 31, 2019 Cash equivalents Money market mutual funds $ 89 $ — $ 89 U.S. treasuries — 3 3 Total cash equivalents 89 3 92 Investments Asset-backed securities — 30 30 Corporate bonds — 96 96 U.S. government agencies and government-sponsored agencies — 5 5 U.S. treasuries — 53 53 Other debt securities — 10 10 Total investments — 194 194 Restricted cash equivalents: Money market mutual funds 42 — 42 U.S. treasuries — 12 12 Certificate of deposit — 2 2 Commercial paper 14 — 14 Total restricted cash equivalents 56 14 70 Restricted investments: Corporate bonds — 28 28 U.S. government agencies and government-sponsored agencies — 9 9 U.S. treasuries — 110 110 Certificate of deposit — 1 1 Total restricted investments — 148 148 Total investments and restricted cash equivalents and investments $ 145 $ 359 $ 504 Fair Value of Financial Instruments Disclosure Long-Term Debt and Revolving Credit Agreement Borrowings Our long-term debt and revolving credit agreement borrowings are floating rate debt. At March 31, 2020, our total debt was carried at cost of $620 million , net of issuance costs, and had a fair value of $607 million , due to credit spread widening in the quarter. At December 31, 2019, the fair value of our floating rate long-term debt approximated its carrying value (exclusive of issuance costs). The fair value of our floating rate debt is estimated based on a discounted cash flow, which incorporates credit spreads, market interest rates and contractual maturities 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 March 31, 2020 : Fair Market Value March 31, 2020 December 31, 2019 (in millions) Hedge type Final settlement date Notional amount Other current assets Accounts payable and other current liabilities Other current assets Accounts payable and other current liabilities Derivatives designated as hedging instruments Collar - LIBOR Cash flow May 2022 $ 213 $ — $ 1 $ — $ — The pre-tax effect of derivative instruments for the three months ended March 31, 2020 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 ended March 31, 2020 and for the year ended December 31, 2019 . As of March 31, 2020 and December 31, 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. |
Accrued Workers' Compensation C
Accrued Workers' Compensation Cost - (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Insurance [Abstract] | |
ACCRUED WORKERS' COMPENSATION COSTS | ACCRUED WORKERS' COMPENSATION COSTS The following table summarizes the accrued workers’ compensation cost activity for the three months ended March 31, 2020 and 2019 : Three Months Ended (in millions) 2020 2019 Total accrued costs, beginning of period $ 214 $ 238 Incurred Current year 20 19 Prior years (3 ) (5 ) Total incurred 17 14 Paid Current year (1 ) (1 ) Prior years (13 ) (15 ) Total paid (14 ) (16 ) Total accrued costs, end of period $ 217 $ 236 The following summarizes workers' compensation liabilities on the condensed consolidated balance sheets: (in millions) March 31, 2020 December 31, 2019 Total accrued costs, end of period $ 217 $ 214 Collateral paid to carriers and offset against accrued costs (9 ) (9 ) Total accrued costs, net of carrier collateral offset $ 208 $ 205 Payable in less than 1 year $ 63 $ 61 Payable in more than 1 year 145 144 Total accrued costs, net of carrier collateral offset $ 208 $ 205 Incurred claims related to prior years represent changes in estimates for ultimate losses on workers' compensation claims. For the three months ended March 31, 2020 , the change was primarily due to lower than expected loss emergence for more recent plan years. As of March 31, 2020 and December 31, 2019 , we had $45 million and $46 million , respectively, of collateral held by insurance carriers of which $9 million and $9 million |
Revolving Credit Agreement Borr
Revolving Credit Agreement Borrowings (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
REVOLVING CREDIT AGREEMENT BORROWINGS | REVOLVING CREDIT AGREEMENT BORROWINGS As of March 31, 2020 , our revolving credit agreement borrowings consisted of the following: (in millions) March 31, Current Liabilities: Revolving credit facility $ 234 Annual contractual interest rate 2.48 % Effective interest rate 2.85 % Our credit agreement entered in June 2018 (2018 Credit Agreement) includes a $250 million revolving credit facility (2018 Revolver), which could be used solely for working capital and other general corporate purposes. Letters of credit issued pursuant to the revolving credit facility reduce the amount available for borrowing under the 2018 Revolver. As of March 31, 2020 , we had $16 million of letters of credit outstanding under the 2018 Revolver. In March 2020, we drew down the remaining $234 million under this facility. Interest on our 2018 Revolver is payable quarterly and is variable based on LIBOR plus 1.625% or the prime rate plus 0.625% , at our option, subject to certain rate adjustments based upon our total leverage ratio. As of March 31, 2020 , the interest rate was based on LIBOR plus 1.625% . We are required to pay a quarterly commitment fee on the daily unused amount of the commitments under our 2018 Revolver, as well as fronting fees and other customary fees for letters of credit issued under our 2018 Revolver, which is subject to adjustments based on our total leverage ratio. Borrowings under our 2018 Revolver are secured by substantially all of our assets, other than excluded assets as defined in our 2018 Credit Agreement, which includes certain customary assets, assets held in trusts as collateral and WSE related assets. The outstanding balance on the 2018 Revolver is payable by June 2023. We are permitted to make voluntary prepayments at any time without payment of a premium. We are required to make mandatory prepayments of term loans (without payment of a premium) with (i) net cash proceeds from issuances of debt (other than certain permitted debt), and (ii) net cash proceeds from certain non-ordinary course asset sales and casualty and condemnation proceeds (subject to reinvestment rights and other exceptions). The 2018 Credit Agreement contains certain financial covenants and restrictive covenants customary for facilities of this type, including restrictions on indebtedness, liens, investments, mergers, dispositions, prepayment of indebtedness (other than our 2018 Term Loan and our 2018 Revolver), dividends, distributions and transactions with affiliates, as well as minimum interest coverage and maximum total leverage ratio requirements. We were in compliance with all financial covenants under the credit facilities at March 31, 2020 . |
Commitments and Contingencies -
Commitments and Contingencies - (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Contingencies 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. |
Stock Based Compensation
Stock Based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
STOCK BASED COMPENSATION | STOCK BASED COMPENSATION Equity-Based Incentive Plans Our 2019 Equity Incentive Plan (the 2019 Plan), approved in May 2019, provides for the grant of stock-based and cash-based awards, including stock options, RSUs, and RSAs. Shares available for grant as of March 31, 2020 was approximately 2 million . The 2009 Equity Incentive Plan (the 2009 Plan), was replaced by the 2019 Plan, except that any outstanding awards granted under the 2009 Plan remain in effect pursuant to their terms. 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 and earned, in part, 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. Performance-based awards granted in 2020 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 performance-based awards granted in 2019 were previously cancelled. RSUs and RSAs are generally forfeited if the participant terminates service prior to vesting. The following tables summarize RSU and RSA activity under our equity-based plans for the three months ended March 31, 2020 : Time-based RSUs and RSAs Total Number of RSUs Total Number of RSAs Total Number of Shares Weighted-Average Grant Date Fair Value Nonvested at December 31, 2019 1,104,729 61,136 1,165,865 $ 48.47 Granted 759,856 — 759,856 51.32 Vested (180,422 ) — (180,422 ) 40.25 Forfeited (28,943 ) — (28,943 ) 50.10 Nonvested at March 31, 2020 1,655,220 61,136 1,716,356 $ 50.57 Performance-based RSUs and RSAs Total Number of RSUs Total Number of RSAs Total Number of Shares Weighted-Average Grant Date Fair Value Nonvested at December 31, 2019 15,752 114,857 130,609 $ 49.70 Granted 183,981 — 183,981 52.86 Nonvested at March 31, 2020 199,733 114,857 314,590 $ 51.55 Stock 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 March 31, (in millions) 2020 2019 Cost of providing services $ 2 $ 2 Sales and marketing 2 1 General and administrative 5 5 Systems development and programming costs — 1 Total stock based compensation expense $ 9 $ 9 |
Stockholders' Equity - (Notes)
Stockholders' Equity - (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Common Stock The following table presents a rollforward of our common stock for the three months ended March 31, 2020 and 2019 : Three Months Ended 2020 2019 Shares issued and outstanding, beginning balance 69,065,491 70,596,559 Issuance of common stock from vested restricted stock units 173,629 286,719 Issuance of common stock from exercise of stock options 29,473 81,282 Repurchase of common stock (747,417 ) (782,909 ) Awards effectively repurchased for required employee withholding taxes (51,126 ) (101,904 ) Shares issued and outstanding, ending balance 68,470,050 70,079,747 Stock Repurchases In February 2020, our board of directors authorized a $300 million incremental increase to our ongoing stock repurchase program. This repurchase authorization has no expiration. We retire shares in the period they are acquired and account for the payment as a reduction to stockholders' equity. During the three months ended March 31, 2020 , we repurchased 747,417 shares of common stock for approximately $40 million . As of March 31, 2020 , approximately $495 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) | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Our effective income tax rate was 25% and 24% for the three months ended March 31, 2020 and 2019 , respectively. The increase was primarily from a decrease in excess tax benefits related to stock-based compensation. During the three months ended March 31, 2020 , there was a de minimis change 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 for which an estimate of the impact on net income cannot be made. We are subject to tax in U.S. federal and various state and local jurisdictions, as well as Canada. We are open to federal and significant state income tax examinations for tax years 2015 and subsequent years. 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 district court granted our motion for summary judgment and denied the U.S.'s motion. On January 18, 2019, the 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 to which the government filed its reply brief on September 6, 2019. Oral arguments occurred on March 11, 2020. We will continue to vigorously defend our position through the litigation process. Given the uncertainty of the outcome of any appeal, it remains possible that our recovery of the refund will be less than the total amount in dispute. |
Earnings Per Share (EPS) - (Not
Earnings Per Share (EPS) - (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
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 (in millions, except per share data) 2020 2019 Net income $ 91 $ 63 Weighted average shares of common stock outstanding 68 70 Basic EPS $ 1.32 $ 0.91 Net income $ 91 $ 63 Weighted average shares of common stock outstanding 68 70 Dilutive effect of stock options and restricted stock units 1 1 Weighted average shares of common stock outstanding - diluted 69 71 Diluted EPS $ 1.31 $ 0.89 Common stock equivalents excluded from income per diluted share because of their anti-dilutive effect 1 1 |
Description of Business and S_2
Description of Business and Significant Accounting Policies - (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
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 months ended March 31, 2020 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, 2019 ( 2019 Form 10-K). |
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. 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. |
Revenue Recognition | Unbilled Revenue |
Investments | Our investments are primarily classified as available-for-sale and are carried at estimated fair value. Unrealized gains and losses are reported as a component of accumulated other comprehensive income, net of deferred income taxes. The amortized cost of debt investments is adjusted for amortization of premiums and accretion of discounts from the date of purchase to the earliest call date for premiums or the maturity date for discounts. Such amortization is included in interest income as an addition to or deduction from the coupon interest earned on the investments. We use the specific identification method to determine realized gains and losses on the sale of available-for-sale securities. Realized gains and losses are included in interest income in the accompanying consolidated statements of income and comprehensive income. We assess our investments for credit impairment. We review several factors to determine whether an unrealized loss is credit related, such as the financial condition and future prospects of the issuer. To the extent that a security’s amortized cost basis exceeds the present value of the cash flows expected to be collected from the security, an allowance for credit losses will be recognized. If management intends to sell or will more likely than not be required to sell the security before any anticipated recovery, a write down will be recognized in earnings measured as the entire difference between the amortized cost and the then-current fair value. We have investments within our unrestricted and our restricted accounts. Unrestricted investments are recorded on the balance sheet as current or noncurrent based upon the remaining time to maturity, and investments subject to restrictions are classified as current or noncurrent based on the expected payout of the related liability. |
Accounts Receivable | Our accounts receivable represents outstanding gross billings to clients, net of an allowance for estimated credit losses. We require our clients to prefund payroll and related liabilities before payroll is processed or due for payment. If a client fails to fund payroll or misses the funding cut-off, at our sole discretion, we may pay the payroll and the resulting amounts due to us are recognized as accounts receivable. When client payment is received in advance of our performance under the contract, such amount is recorded as client deposits. We establish an allowance for credit losses based on the credit quality of clients, current economic conditions, the age of the accounts receivable balances, historical experience, and other factors that may affect clients’ ability to pay, and charge-off amounts against the allowance when they are deemed uncollectible. |
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 three months ended March 31, 2020 , a 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 external actuarial studies that include other relevant factors such as current and historical claims payment patterns, plan enrollment and medical trend rates. |
Recent Accounting Pronouncements | We adopted ASU 2016-13 - Financial Instruments - Credit Losses (ASC Topic 326) effective January 1, 2020 using a modified retrospective approach, 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, 2020 with unchanged comparative periods. We are required to use forward-looking information when evaluating an allowance for our accounts receivable, unbilled revenue and other financial assets measured at amortized cost. ASC Topic 326 also modified the impairment guidance for available-for-sale debt securities to require an allowance for credit losses. The adoption of ASC Topic 326 did not have a material effect on our financial statements. |
Fair Value Measurement | We use an independent pricing source to determine the fair value of our securities. 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). |
Cash, Cash Equivalents and In_2
Cash, Cash Equivalents and Investments - (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Summary of Cash, Cash Equivalents and Investments | Our total cash, cash equivalents and investments are summarized below: March 31, 2020 December 31, 2019 (in millions) Cash and cash equivalents Available-for-sale marketable securities Certificate of deposits Total Cash and cash equivalents Available-for-sale marketable securities Certificate of deposits Total Cash and cash equivalents $ 521 $ — $ — $ 521 $ 213 $ — $ — $ 213 Investments — 65 — 65 — 68 — 68 Restricted cash, cash equivalents and investments: Payroll funds collected 611 — — 611 1,018 — — 1,018 Collateral for health benefits claims 27 76 — 103 98 — — 98 Collateral for workers' compensation claims 63 — — 63 62 — — 62 Other security deposits 2 — — 2 2 — — 2 Total restricted cash, cash equivalents and investments 703 76 — 779 1,180 — — 1,180 Investments, noncurrent — 130 — 130 — 125 — 125 Restricted cash, cash equivalents and investments, noncurrent Collateral for workers' compensation claims 41 162 1 204 63 148 1 212 Total $ 1,265 $ 433 $ 1 $ 1,699 $ 1,456 $ 341 $ 1 $ 1,798 |
Investments - (Tables)
Investments - (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 AFS investments as of March 31, 2020 and December 31, 2019 are presented below. March 31, 2020 December 31, 2019 (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 $ 30 $ — $ — $ 30 $ 30 $ — $ — $ 30 Corporate bonds 126 1 (1 ) 126 123 1 — 124 U.S. government agencies and government- sponsored agencies 24 1 — 25 14 — — 14 U.S. treasuries 239 5 — 244 163 — — 163 Certificate of deposit 1 — — 1 1 — — 1 Other debt securities 8 — — 8 10 — — 10 Total $ 428 $ 7 $ (1 ) $ 434 $ 341 $ 1 $ — $ 342 |
Fair Value of Debt Investments by Contractual Maturity | The fair value of debt investments by contractual maturity are shown below: (in millions) March 31, 2020 One year or less $ 94 Over one year through five years 310 Over five years through ten years 9 Over ten years 21 Total fair value $ 434 |
Proceeds from available-for-sale securities | The gross proceeds from sales and maturities of AFS securities for the three months ended March 31, 2020 and March 31, 2019 are presented below. We had immaterial gross realized gains and losses from sales of investments for the three months ended March 31, 2020 and March 31, 2019 . Three Months Ended (in millions) 2020 2019 Gross proceeds from sales $ 40 $ 14 Gross proceeds from maturities 27 17 Total $ 67 $ 31 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements - (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 and December 31, 2019 . (in millions) Level 1 Level 2 Total March 31, 2020 Cash equivalents: Money market mutual funds $ 328 $ — 328 Total cash equivalents 328 — 328 Investments: Asset-backed securities — 30 30 Corporate bonds — 95 95 U.S. government agencies and government-sponsored agencies — 7 7 U.S. treasuries — 55 55 Other debt securities — 8 8 Total investments — 195 195 Restricted cash equivalents: Money market mutual funds 90 — 90 Certificate of deposit — 1 1 Commercial paper 14 — 14 Total restricted cash equivalents 104 1 105 Restricted investments: Corporate bonds — 31 31 U.S. government agencies and government-sponsored agencies — 18 18 U.S. treasuries — 189 189 Certificate of deposit — 1 1 Total restricted investments — 239 239 Total cash equivalents and investments and restricted cash equivalents and investments $ 432 $ 435 $ 867 (in millions) Level 1 Level 2 Total December 31, 2019 Cash equivalents Money market mutual funds $ 89 $ — $ 89 U.S. treasuries — 3 3 Total cash equivalents 89 3 92 Investments Asset-backed securities — 30 30 Corporate bonds — 96 96 U.S. government agencies and government-sponsored agencies — 5 5 U.S. treasuries — 53 53 Other debt securities — 10 10 Total investments — 194 194 Restricted cash equivalents: Money market mutual funds 42 — 42 U.S. treasuries — 12 12 Certificate of deposit — 2 2 Commercial paper 14 — 14 Total restricted cash equivalents 56 14 70 Restricted investments: Corporate bonds — 28 28 U.S. government agencies and government-sponsored agencies — 9 9 U.S. treasuries — 110 110 Certificate of deposit — 1 1 Total restricted investments — 148 148 Total investments and restricted cash equivalents and investments $ 145 $ 359 $ 504 |
Schedule of Cash Flow Hedging Instruments | The following table summarizes the fair value of our derivative instruments at March 31, 2020 : Fair Market Value March 31, 2020 December 31, 2019 (in millions) Hedge type Final settlement date Notional amount Other current assets Accounts payable and other current liabilities Other current assets Accounts payable and other current liabilities Derivatives designated as hedging instruments Collar - LIBOR Cash flow May 2022 $ 213 $ — $ 1 $ — $ — |
Schedule of Notional Amounts of Outstanding Derivative Positions | The following table summarizes the fair value of our derivative instruments at March 31, 2020 : Fair Market Value March 31, 2020 December 31, 2019 (in millions) Hedge type Final settlement date Notional amount Other current assets Accounts payable and other current liabilities Other current assets Accounts payable and other current liabilities Derivatives designated as hedging instruments Collar - LIBOR Cash flow May 2022 $ 213 $ — $ 1 $ — $ — |
Accrued Workers' Compensation_2
Accrued Workers' Compensation Cost - (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 months ended March 31, 2020 and 2019 : Three Months Ended (in millions) 2020 2019 Total accrued costs, beginning of period $ 214 $ 238 Incurred Current year 20 19 Prior years (3 ) (5 ) Total incurred 17 14 Paid Current year (1 ) (1 ) Prior years (13 ) (15 ) Total paid (14 ) (16 ) Total accrued costs, end of period $ 217 $ 236 The following summarizes workers' compensation liabilities on the condensed consolidated balance sheets: (in millions) March 31, 2020 December 31, 2019 Total accrued costs, end of period $ 217 $ 214 Collateral paid to carriers and offset against accrued costs (9 ) (9 ) Total accrued costs, net of carrier collateral offset $ 208 $ 205 Payable in less than 1 year $ 63 $ 61 Payable in more than 1 year 145 144 Total accrued costs, net of carrier collateral offset $ 208 $ 205 |
Revolving Credit Agreement Bo_2
Revolving Credit Agreement Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Revolving Credit Agreement Borrowings | As of March 31, 2020 , our revolving credit agreement borrowings consisted of the following: (in millions) March 31, Current Liabilities: Revolving credit facility $ 234 Annual contractual interest rate 2.48 % Effective interest rate 2.85 % |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of RSU and RSA Activity Under Equity-Based Plans | The following tables summarize RSU and RSA activity under our equity-based plans for the three months ended March 31, 2020 : Time-based RSUs and RSAs Total Number of RSUs Total Number of RSAs Total Number of Shares Weighted-Average Grant Date Fair Value Nonvested at December 31, 2019 1,104,729 61,136 1,165,865 $ 48.47 Granted 759,856 — 759,856 51.32 Vested (180,422 ) — (180,422 ) 40.25 Forfeited (28,943 ) — (28,943 ) 50.10 Nonvested at March 31, 2020 1,655,220 61,136 1,716,356 $ 50.57 Performance-based RSUs and RSAs Total Number of RSUs Total Number of RSAs Total Number of Shares Weighted-Average Grant Date Fair Value Nonvested at December 31, 2019 15,752 114,857 130,609 $ 49.70 Granted 183,981 — 183,981 52.86 Nonvested at March 31, 2020 199,733 114,857 314,590 $ 51.55 |
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 March 31, (in millions) 2020 2019 Cost of providing services $ 2 $ 2 Sales and marketing 2 1 General and administrative 5 5 Systems development and programming costs — 1 Total stock based compensation expense $ 9 $ 9 |
Stockholders' Equity - (Tables)
Stockholders' Equity - (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Schedule of Common Stock | The following table presents a rollforward of our common stock for the three months ended March 31, 2020 and 2019 : Three Months Ended 2020 2019 Shares issued and outstanding, beginning balance 69,065,491 70,596,559 Issuance of common stock from vested restricted stock units 173,629 286,719 Issuance of common stock from exercise of stock options 29,473 81,282 Repurchase of common stock (747,417 ) (782,909 ) Awards effectively repurchased for required employee withholding taxes (51,126 ) (101,904 ) Shares issued and outstanding, ending balance 68,470,050 70,079,747 |
Earnings Per Share (EPS) - (Tab
Earnings Per Share (EPS) - (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 (in millions, except per share data) 2020 2019 Net income $ 91 $ 63 Weighted average shares of common stock outstanding 68 70 Basic EPS $ 1.32 $ 0.91 Net income $ 91 $ 63 Weighted average shares of common stock outstanding 68 70 Dilutive effect of stock options and restricted stock units 1 1 Weighted average shares of common stock outstanding - diluted 69 71 Diluted EPS $ 1.31 $ 0.89 Common stock equivalents excluded from income per diluted share because of their anti-dilutive effect 1 1 |
Description of Business and S_3
Description of Business and Significant Accounting Policies - Narrative (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2020USD ($)segment | Dec. 31, 2019USD ($) | |
Product Information [Line Items] | ||
Number of reportable segments | segment | 1 | |
Advance collections of unbilled revenues | $ 47 | |
Prepayments offsetting accrued health insurance costs | $ 40 | $ 39 |
Non-US | Revenue | Foreign Sales | ||
Product Information [Line Items] | ||
Percent of concentration risk | 1.00% | |
Health Care | ||
Product Information [Line Items] | ||
Prepayments offsetting accrued health insurance costs | $ 58 | $ 52 |
Cash, Cash Equivalents and In_3
Cash, Cash Equivalents and Investments - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Cash and cash equivalents | $ 521 | $ 213 |
Investments | 65 | 68 |
Restricted cash, cash equivalents and investments | 779 | 1,180 |
Investments, noncurrent | 130 | 125 |
Restricted cash, cash equivalents and investments, noncurrent | 204 | 212 |
Total cash equivalents and investments and restricted cash equivalents and investments | 1,699 | 1,798 |
Cash and cash equivalents | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Cash and cash equivalents | 521 | 213 |
Investments | 0 | 0 |
Restricted cash, cash equivalents and investments | 703 | 1,180 |
Investments, noncurrent | 0 | 0 |
Total cash equivalents and investments and restricted cash equivalents and investments | 1,265 | 1,456 |
Available-for-sale marketable securities | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Investments | 65 | 68 |
Restricted cash, cash equivalents and investments | 76 | 0 |
Investments, noncurrent | 130 | 125 |
Total cash equivalents and investments and restricted cash equivalents and investments | 433 | 341 |
Certificate of deposits | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Investments | 0 | 0 |
Restricted cash, cash equivalents and investments | 0 | 0 |
Investments, noncurrent | 0 | 0 |
Total cash equivalents and investments and restricted cash equivalents and investments | 1 | 1 |
Payroll funds collected | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash, cash equivalents and investments | 611 | 1,018 |
Payroll funds collected | Cash and cash equivalents | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash, cash equivalents and investments | 611 | 1,018 |
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 | 0 |
Collateral for health benefits claims | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash, cash equivalents and investments | 103 | 98 |
Collateral for health benefits claims | Cash and cash equivalents | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash, cash equivalents and investments | 27 | 98 |
Collateral for health benefits claims | Available-for-sale marketable securities | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash, cash equivalents and investments | 76 | 0 |
Collateral for health benefits claims | Certificate of deposits | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash, cash equivalents and investments | 0 | 0 |
Collateral for workers' compensation claims | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash, cash equivalents and investments | 63 | 62 |
Restricted cash, cash equivalents and investments, noncurrent | 204 | 212 |
Collateral for workers' compensation claims | Cash and cash equivalents | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash, cash equivalents and investments | 63 | 62 |
Restricted cash, cash equivalents and investments, noncurrent | 41 | 63 |
Collateral for workers' compensation claims | Available-for-sale marketable securities | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash, cash equivalents and investments | 0 | 0 |
Restricted cash, cash equivalents and investments, noncurrent | 162 | 148 |
Collateral for workers' compensation claims | Certificate of deposits | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash, cash equivalents and investments | 0 | 0 |
Restricted cash, cash equivalents and investments, noncurrent | 1 | 1 |
Other security deposits | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash, cash equivalents and investments | 2 | 2 |
Other security deposits | Cash and cash equivalents | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash, cash equivalents and investments | 2 | 2 |
Other security deposits | Available-for-sale marketable securities | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash, cash equivalents and investments | 0 | 0 |
Other security deposits | Certificate of deposits | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash, cash equivalents and investments | $ 0 | $ 0 |
Investments - Amortized Cost, G
Investments - Amortized Cost, Gross Unrealized Gains and Losses, Fair Values of Investments (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Securities | ||
Amortized Cost | $ 428 | $ 341 |
Gross Unrealized Gains | 7 | 1 |
Gross Unrealized Losses | (1) | 0 |
Fair Value | 434 | 342 |
Asset-backed securities | ||
Debt Securities | ||
Amortized Cost | 30 | 30 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 30 | 30 |
Corporate bonds | ||
Debt Securities | ||
Amortized Cost | 126 | 123 |
Gross Unrealized Gains | 1 | 1 |
Gross Unrealized Losses | (1) | 0 |
Fair Value | 126 | 124 |
U.S. government agencies and government- sponsored agencies | ||
Debt Securities | ||
Amortized Cost | 24 | 14 |
Gross Unrealized Gains | 1 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 25 | 14 |
U.S. treasuries | ||
Debt Securities | ||
Amortized Cost | 239 | 163 |
Gross Unrealized Gains | 5 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 244 | 163 |
Certificate of deposits | ||
Debt 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 | 8 | 10 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 8 | $ 10 |
Investments - Fair Value of Deb
Investments - Fair Value of Debt Investments by Contractual Maturity (Details) $ in Millions | Mar. 31, 2020USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
One year or less | $ 94 |
Over one year through five years | 310 |
Over five years through ten years | 9 |
Over ten years | 21 |
Total fair value | $ 434 |
Investments - Proceeds from ava
Investments - Proceeds from available-for-sale securities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||
Gross proceeds from sales | $ 40 | $ 14 |
Gross proceeds from maturities | 27 | 17 |
Total | $ 67 | $ 31 |
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 | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Financial Instruments [Line Items] | ||
Investments | $ 434 | $ 342 |
Total cash equivalents and investments and restricted cash equivalents and investments | 1,699 | 1,798 |
Fair Value Measurement on a Recurring Basis | ||
Fair Value, Financial Instruments [Line Items] | ||
Cash equivalents | 328 | 92 |
Investments | 195 | 194 |
Restricted cash equivalents | 105 | 70 |
Restricted investments | 239 | 148 |
Total cash equivalents and investments and restricted cash equivalents and investments | 867 | 504 |
Fair Value Measurement on a Recurring Basis | Level 1 | ||
Fair Value, Financial Instruments [Line Items] | ||
Cash equivalents | 328 | 89 |
Investments | 0 | 0 |
Restricted cash equivalents | 104 | 56 |
Restricted investments | 0 | 0 |
Total cash equivalents and investments and restricted cash equivalents and investments | 432 | 145 |
Fair Value Measurement on a Recurring Basis | Level 2 | ||
Fair Value, Financial Instruments [Line Items] | ||
Cash equivalents | 0 | 3 |
Investments | 195 | 194 |
Restricted cash equivalents | 1 | 14 |
Restricted investments | 239 | 148 |
Total cash equivalents and investments and restricted cash equivalents and investments | 435 | 359 |
Asset-backed securities | Fair Value Measurement on a Recurring Basis | ||
Fair Value, Financial Instruments [Line Items] | ||
Investments | 30 | 30 |
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 | 30 | 30 |
Corporate bonds | Fair Value Measurement on a Recurring Basis | ||
Fair Value, Financial Instruments [Line Items] | ||
Investments | 95 | 96 |
Restricted investments | 31 | 28 |
Corporate bonds | Fair Value Measurement on a Recurring Basis | Level 1 | ||
Fair Value, Financial Instruments [Line Items] | ||
Investments | 0 | 0 |
Restricted investments | 0 | 0 |
Corporate bonds | Fair Value Measurement on a Recurring Basis | Level 2 | ||
Fair Value, Financial Instruments [Line Items] | ||
Investments | 95 | 96 |
Restricted investments | 31 | 28 |
U.S. government agencies and government- sponsored agencies | Fair Value Measurement on a Recurring Basis | ||
Fair Value, Financial Instruments [Line Items] | ||
Investments | 7 | 5 |
Restricted investments | 18 | 9 |
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 |
Restricted 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 | 7 | 5 |
Restricted investments | 18 | 9 |
U.S. treasuries | Fair Value Measurement on a Recurring Basis | ||
Fair Value, Financial Instruments [Line Items] | ||
Investments | 55 | 53 |
Restricted investments | 189 | 110 |
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 | 55 | 53 |
Restricted investments | 189 | 110 |
Other debt securities | Fair Value Measurement on a Recurring Basis | ||
Fair Value, Financial Instruments [Line Items] | ||
Investments | 8 | 10 |
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 | 8 | 10 |
Certificate of deposit | ||
Fair Value, Financial Instruments [Line Items] | ||
Total cash equivalents and investments and restricted cash equivalents and investments | 1 | 1 |
Certificate of deposit | Fair Value Measurement on a Recurring Basis | ||
Fair Value, Financial Instruments [Line Items] | ||
Restricted investments | 1 | 1 |
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 | 1 | 1 |
Money market mutual funds | Fair Value Measurement on a Recurring Basis | ||
Fair Value, Financial Instruments [Line Items] | ||
Cash equivalents | 328 | 89 |
Restricted cash equivalents | 90 | 42 |
Money market mutual funds | Fair Value Measurement on a Recurring Basis | Level 1 | ||
Fair Value, Financial Instruments [Line Items] | ||
Cash equivalents | 328 | 89 |
Restricted cash equivalents | 90 | 42 |
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 |
Certificate of deposit | Fair Value Measurement on a Recurring Basis | ||
Fair Value, Financial Instruments [Line Items] | ||
Restricted cash equivalents | 1 | 2 |
Certificate of deposit | Fair Value Measurement on a Recurring Basis | Level 1 | ||
Fair Value, Financial Instruments [Line Items] | ||
Restricted cash equivalents | 0 | 0 |
Certificate of deposit | Fair Value Measurement on a Recurring Basis | Level 2 | ||
Fair Value, Financial Instruments [Line Items] | ||
Restricted cash equivalents | 1 | 2 |
U.S. treasuries | Fair Value Measurement on a Recurring Basis | ||
Fair Value, Financial Instruments [Line Items] | ||
Cash equivalents | 3 | |
Restricted cash equivalents | 12 | |
U.S. treasuries | Fair Value Measurement on a Recurring Basis | Level 1 | ||
Fair Value, Financial Instruments [Line Items] | ||
Cash equivalents | 0 | |
Restricted cash equivalents | 0 | |
U.S. treasuries | Fair Value Measurement on a Recurring Basis | Level 2 | ||
Fair Value, Financial Instruments [Line Items] | ||
Cash equivalents | 3 | |
Restricted cash equivalents | 12 | |
Commercial paper | Fair Value Measurement on a Recurring Basis | ||
Fair Value, Financial Instruments [Line Items] | ||
Restricted cash equivalents | 14 | 14 |
Commercial paper | Fair Value Measurement on a Recurring Basis | Level 1 | ||
Fair Value, Financial Instruments [Line Items] | ||
Restricted cash equivalents | 14 | 14 |
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 - Narrative (Details) $ in Millions | Mar. 31, 2020USD ($) |
Fair Value Disclosures [Abstract] | |
Total debt | $ 620 |
Fair value of total debt | $ 607 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measurements - Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Notional amount | $ 213 | |
Other current assets | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Market Value | 0 | $ 0 |
Accounts payable and other current liabilities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Market Value | $ 1 | $ 0 |
Accrued Workers' Compensation_3
Accrued Workers' Compensation Cost - Summary of Workers' Compensation Loss Reserve Activity (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Total accrued costs, beginning of period | $ 214 | $ 238 |
Incurred | ||
Current year | 20 | 19 |
Prior years | (3) | (5) |
Total incurred | 17 | 14 |
Paid | ||
Current year | (1) | (1) |
Prior years | (13) | (15) |
Total paid | (14) | (16) |
Total accrued costs, end of period | $ 217 | $ 236 |
Accrued Workers' Compensation_4
Accrued Workers' Compensation Cost - Summary of Workers' Compensation Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Insurance [Abstract] | ||||
Total accrued costs, end of period | $ 217 | $ 214 | $ 236 | $ 238 |
Collateral paid to carriers and offset against accrued costs | (9) | (9) | ||
Total accrued costs, net of carrier collateral offset | 208 | 205 | ||
Payable in less than 1 year (net of collateral paid to carriers of $3 at March 31, 2020 and December 31, 2019) | 63 | 61 | ||
Payable in more than 1 year (net of collateral paid to carriers of $6 at March 31, 2020 and December 31, 2019) | 145 | 144 | ||
Accrued health insurance costs, net current | 3 | 3 | ||
Accrued health insurance costs, net noncurrent | $ 6 | $ 6 |
Accrued Workers' Compensation_5
Accrued Workers' Compensation Cost - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Insurance [Abstract] | ||
Collateral held by insurance carriers | $ 45 | $ 46 |
Liability for unpaid claims and claims adjustment expense, collateral | $ 9 | $ 9 |
Revolving Credit Agreement Bo_3
Revolving Credit Agreement Borrowings - Schedule of Revolving Credit Agreement Borrowings (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Line of Credit Facility [Line Items] | ||
Revolving credit facility | $ 234 | $ 0 |
2018 Revolver | Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Revolving credit facility | $ 234 | |
Annual contractual interest rate | 2.48% | |
Effective interest rate | 2.85% |
Revolving Credit Agreement Bo_4
Revolving Credit Agreement Borrowings - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | |
Line of Credit Facility [Line Items] | |||
Proceeds from revolving credit agreement borrowings | $ 234 | $ 0 | |
2018 Revolver | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 250 | 250 | |
Letters of credit outstanding | 16 | $ 16 | |
Proceeds from revolving credit agreement borrowings | $ 234 | ||
2018 Revolver | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.625% | ||
2018 Revolver | Prime Rate | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 0.625% |
Stock Based Compensation - Narr
Stock Based Compensation - Narrative (Details) shares in Millions | 3 Months Ended |
Mar. 31, 2020shares | |
Additional Disclosures for equity-based plans | |
Shares available for grant (in shares) | 2 |
Time-based RSUs and RSAs | |
Additional Disclosures for equity-based plans | |
Vesting period | 4 years |
Time-based RSUs and RSAs | Minimum | |
Additional Disclosures for equity-based plans | |
Percent of share value | 0.00% |
Time-based RSUs and RSAs | Maximum | |
Additional Disclosures for equity-based plans | |
Percent of share value | 200.00% |
Performance-based RSUs and RSAs | |
Additional Disclosures for equity-based plans | |
Performance period for 2020 and 2018 awards | 1 year |
Share-based Payment Arrangement, Tranche One | Performance-based RSUs and RSAs | |
Additional Disclosures for equity-based plans | |
Vesting period | 1 year |
Amount of shares that are expected to vest (as a percent ) | 50.00% |
Stock Based Compensation - Summ
Stock Based Compensation - Summary Of RSU And RSA Activity (Details) | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Time-Based Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Balance (in shares) | 1,104,729 |
Granted (in shares) | 759,856 |
Vested (in shares) | (180,422) |
Forfeited (in shares) | (28,943) |
Balance (in shares) | 1,655,220 |
Time-Based Restricted Stock Awards | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Balance (in shares) | 61,136 |
Granted (in shares) | 0 |
Vested (in shares) | 0 |
Forfeited (in shares) | 0 |
Balance (in shares) | 61,136 |
Time-based RSUs and RSAs | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Balance (in shares) | 1,165,865 |
Granted (in shares) | 759,856 |
Vested (in shares) | (180,422) |
Forfeited (in shares) | (28,943) |
Balance (in shares) | 1,716,356 |
Weighted-Average Grant Date Fair Value | |
Balance (in dollars per share) | $ / shares | $ 48.47 |
Granted (in dollars per share) | $ / shares | 51.32 |
Vested (in dollars per share) | $ / shares | 40.25 |
Forfeited (in dollars per share) | $ / shares | 50.10 |
Balance (in dollars per share) | $ / shares | $ 50.57 |
Performance-Based Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Balance (in shares) | 15,752 |
Granted (in shares) | 183,981 |
Balance (in shares) | 199,733 |
Performance-Based Restricted Stock Awards | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Balance (in shares) | 114,857 |
Granted (in shares) | 0 |
Balance (in shares) | 114,857 |
Performance-based RSUs and RSAs | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Balance (in shares) | 130,609 |
Granted (in shares) | 183,981 |
Balance (in shares) | 314,590 |
Weighted-Average Grant Date Fair Value | |
Balance (in dollars per share) | $ / shares | $ 49.70 |
Granted (in dollars per share) | $ / shares | 52.86 |
Balance (in dollars per share) | $ / shares | $ 51.55 |
Stock Based Compensation - Stoc
Stock Based Compensation - Stock Based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Additional Disclosures for equity-based plans | ||
Total stock based compensation expense | $ 9 | $ 9 |
Cost of providing services | ||
Additional Disclosures for equity-based plans | ||
Total stock based compensation expense | 2 | 2 |
Sales and marketing | ||
Additional Disclosures for equity-based plans | ||
Total stock based compensation expense | 2 | 1 |
General and administrative | ||
Additional Disclosures for equity-based plans | ||
Total stock based compensation expense | 5 | 5 |
Systems development and programming costs | ||
Additional Disclosures for equity-based plans | ||
Total stock based compensation expense | $ 0 | $ 1 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Common Stock (Details) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Shares issued beginning balance (In shares) | 69,065,491 | 70,596,559 |
Repurchase of common stock (in shares) | (747,417) | (782,909) |
Awards effectively repurchased for required employee withholding taxes (in shares) | (51,126) | (101,904) |
Shares issued ending balance (In shares) | 68,470,050 | 70,079,747 |
Issuance of common stock from vested restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Issuance of common stock from vested restricted stock units (in shares) | 173,629 | 286,719 |
Issuance of common stock from exercise of stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Issuance of common stock from exercise of stock options (in shares) | 29,473 | 81,282 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Feb. 29, 2020 | |
Equity [Abstract] | |||
Incremental increase to share repurchase program authorized amount | $ 300,000,000 | ||
Repurchase of common stock (in shares) | 747,417 | 782,909 | |
Repurchase of common stock | $ 40,000,000 | ||
Amount available for further repurchases under stock repurchase program | $ 495,000,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | Jan. 18, 2019 | Mar. 31, 2020 | Mar. 31, 2019 |
Income Tax Contingency [Line Items] | |||
Effective income tax rate | 25.00% | 24.00% | |
Amount awarded | $ 15 | ||
Internal Revenue Service | |||
Income Tax Contingency [Line Items] | |||
Income taxes paid | $ 11 | ||
Interest payment | $ 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, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Basic EPS | ||
Net income | $ 91 | $ 63 |
Weighted average shares of common stock outstanding (in shares) | 68 | 70 |
Basic earnings per share (in dollars per share) | $ 1.32 | $ 0.91 |
Diluted EPS | ||
Net income | $ 91 | $ 63 |
Weighted average shares of common stock outstanding (in shares) | 68 | 70 |
Dilutive effect of stock options and restricted stock units (in shares) | 1 | 1 |
Weighted average shares of common stock outstanding - diluted (in shares) | 69 | 71 |
Diluted earnings per share (in dollars per share) | $ 1.31 | $ 0.89 |
Common stock equivalents excluded from income per diluted share because of their anti-dilutive effect ( in shares ) | 1 | 1 |