Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 19, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
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, | |
Entity Address, Address Line Two | 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 $0.000025 per share | |
Trading Symbol | TNET | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 59,681,266 | |
Entity Central Index Key | 0000937098 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Total revenues | $ 1,209 | $ 1,200 | $ 2,455 | $ 2,418 |
Costs and operating expenses: | ||||
Insurance costs | 868 | 852 | 1,720 | 1,675 |
Cost of providing services | 79 | 76 | 156 | 146 |
Sales and marketing | 70 | 62 | 139 | 107 |
General and administrative | 60 | 55 | 103 | 102 |
Systems development and programming | 17 | 20 | 34 | 36 |
Depreciation and amortization of intangible assets | 18 | 16 | 36 | 29 |
Total costs and operating expenses | 1,112 | 1,081 | 2,188 | 2,095 |
Operating income | 97 | 119 | 267 | 323 |
Other income (expense): | ||||
Interest expense, bank fees and other | (6) | (5) | (13) | (11) |
Interest income | 20 | 2 | 38 | 3 |
Income before provision for income taxes | 111 | 116 | 292 | 315 |
Income taxes | 28 | 31 | 78 | 85 |
Net income | 83 | 85 | 214 | 230 |
Other comprehensive loss, net of income taxes | (4) | (3) | (1) | (11) |
Comprehensive income | $ 79 | $ 82 | $ 213 | $ 219 |
Net income per share: | ||||
Basic (in dollars per share) | $ 1.40 | $ 1.36 | $ 3.58 | $ 3.62 |
Diluted (in dollars per share) | $ 1.38 | $ 1.35 | $ 3.56 | $ 3.58 |
Weighted average shares: | ||||
Basic (in shares) | 60 | 62 | 60 | 64 |
Diluted (in shares) | 60 | 63 | 60 | 64 |
Professional service revenues | ||||
Total revenues | $ 177 | $ 182 | $ 382 | $ 376 |
Insurance service revenues | ||||
Total revenues | $ 1,032 | $ 1,018 | $ 2,073 | $ 2,042 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 482 | $ 354 |
Investments | 69 | 76 |
Restricted cash, cash equivalents and investments | 1,074 | 1,263 |
Accounts receivable, net | 18 | 19 |
Unbilled revenue, net | 363 | 375 |
Prepaid expenses, net | 72 | 71 |
Other payroll assets | 54 | 122 |
Other current assets | 45 | 46 |
Total current assets | 2,177 | 2,326 |
Restricted cash, cash equivalents and investments, noncurrent | 157 | 153 |
Investments, noncurrent | 146 | 151 |
Property and equipment, net | 29 | 24 |
Operating lease right-of-use asset | 27 | 31 |
Goodwill | 462 | 462 |
Software and other intangible assets, net | 156 | 163 |
Other assets | 136 | 133 |
Total assets | 3,290 | 3,443 |
Current liabilities: | ||
Accounts payable and other current liabilities | 100 | 98 |
Client deposits and other client liabilities | 78 | 106 |
Accrued wages | 437 | 437 |
Accrued health insurance costs, net | 170 | 174 |
Accrued workers' compensation costs, net | 51 | 54 |
Payroll tax liabilities and other payroll withholdings | 846 | 1,087 |
Operating lease liabilities | 15 | 15 |
Insurance premiums and other payables | 10 | 17 |
Total current liabilities | 1,707 | 1,988 |
Long-term debt, noncurrent | 496 | 496 |
Accrued workers' compensation costs, noncurrent, net | 122 | 128 |
Deferred taxes | 7 | 8 |
Operating lease liabilities, noncurrent | 33 | 41 |
Other non-current liabilities | 10 | 7 |
Total liabilities | 2,375 | 2,668 |
Commitments and contingencies (see Note 6) | ||
Stockholders' equity: | ||
Preferred stock | 0 | 0 |
Common stock and additional paid-in capital | 934 | 899 |
Accumulated deficit | (13) | (119) |
Accumulated other comprehensive loss | (6) | (5) |
Total stockholders' equity | 915 | 775 |
Total liabilities & stockholders' equity | $ 3,290 | $ 3,443 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2023 | Dec. 31, 2022 |
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) | 59,674,960 | 60,555,661 |
Common stock, shares outstanding (in shares) | 59,674,960 | 60,555,661 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Millions | Total | Common Stock and Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income |
Beginning balance at Dec. 31, 2021 | $ 881 | $ 808 | $ 74 | $ (1) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of common stock from exercise of stock options | 1 | |||
Issuance of common stock for employee stock purchase plan | 5 | |||
Issuance of common stock for the acquisition of Zenefits | 17 | |||
Stock based compensation expense | 30 | |||
Net income | 230 | 230 | ||
Repurchase of common stock | (382) | |||
Awards effectively repurchased for required employee withholding taxes | (8) | |||
Other comprehensive loss | (11) | (11) | ||
Ending balance at Jun. 30, 2022 | 763 | 861 | (86) | (12) |
Beginning balance at Mar. 31, 2022 | 695 | 837 | (133) | (9) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of common stock from exercise of stock options | 1 | |||
Issuance of common stock for employee stock purchase plan | 5 | |||
Issuance of common stock for the acquisition of Zenefits | 0 | |||
Stock based compensation expense | 18 | |||
Net income | 85 | 85 | ||
Repurchase of common stock | (33) | |||
Awards effectively repurchased for required employee withholding taxes | (5) | |||
Other comprehensive loss | (3) | (3) | ||
Ending balance at Jun. 30, 2022 | 763 | 861 | (86) | (12) |
Beginning balance at Dec. 31, 2022 | 775 | 899 | (120) | (5) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of common stock from exercise of stock options | 1 | |||
Issuance of common stock for employee stock purchase plan | 6 | |||
Issuance of common stock for the acquisition of Zenefits | 0 | |||
Stock based compensation expense | 28 | |||
Net income | 214 | 214 | ||
Repurchase of common stock | (98) | |||
Awards effectively repurchased for required employee withholding taxes | (9) | |||
Other comprehensive loss | (1) | (1) | ||
Ending balance at Jun. 30, 2023 | 915 | 934 | (13) | (6) |
Beginning balance at Mar. 31, 2023 | 825 | 910 | (83) | (2) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of common stock from exercise of stock options | 1 | |||
Issuance of common stock for employee stock purchase plan | 6 | |||
Issuance of common stock for the acquisition of Zenefits | 0 | |||
Stock based compensation expense | 17 | |||
Net income | 83 | 83 | ||
Repurchase of common stock | (8) | |||
Awards effectively repurchased for required employee withholding taxes | (5) | |||
Other comprehensive loss | (4) | (4) | ||
Ending balance at Jun. 30, 2023 | $ 915 | $ 934 | $ (13) | $ (6) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Operating activities | ||
Net income | $ 214 | $ 230 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of intangible assets | 36 | 29 |
Amortization of deferred costs | 20 | 18 |
Amortization of ROU asset, lease modification, impairment, and abandonment | 2 | 6 |
Stock based compensation | 28 | 30 |
Other | 2 | 2 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (1) | 8 |
Unbilled revenue, net | 12 | 16 |
Other assets and prepaid expenses, net | (24) | (17) |
Other payroll assets | 68 | (4) |
Accounts payable and other liabilities | 0 | 2 |
Client deposits and other client liabilities | (27) | (23) |
Accrued wages | 0 | 196 |
Accrued health insurance costs, net | (5) | (23) |
Accrued workers' compensation costs, net | (9) | (9) |
Payroll taxes payable and other payroll withholdings | (241) | (328) |
Operating lease liabilities | (8) | (8) |
Net cash provided by operating activities | 67 | 125 |
Investing activities | ||
Purchases of marketable securities | (170) | (157) |
Proceeds from sale and maturity of marketable securities | 173 | 175 |
Acquisitions of property and equipment | (34) | (26) |
Acquisition of subsidiary, net of cash acquired | 0 | (183) |
Net cash used in investing activities | (31) | (191) |
Financing activities | ||
Repurchase of common stock | (98) | (382) |
Proceeds from issuance of common stock | 7 | 5 |
Revolver drawdown | 495 | 0 |
Revolver repayment | (495) | 0 |
Awards effectively repurchased for required employee withholding taxes | (9) | (8) |
Net cash used in financing activities | (100) | (385) |
Net decrease in cash and cash equivalents, unrestricted and restricted | (64) | (451) |
Cash and cash equivalents, unrestricted and restricted: | ||
Beginning of period | 1,537 | 1,738 |
End of period | 1,473 | 1,287 |
Supplemental disclosures of cash flow information | ||
Interest paid | 12 | 9 |
Income taxes paid, net | 58 | 37 |
Supplemental schedule of noncash investing and financing activities | ||
Payable for purchase of property and equipment | $ 5 | $ 3 |
DESCRIPTION OF BUSINESS AND SIG
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2023 | |
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) provides comprehensive HCM solutions for small and medium-size businesses under both a co-employment model and an administrative services only model. These HCM 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 our PEO service model, 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, • certain 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. Through our HCM services model, we provide cloud-based HCM services to small and medium-size businesses that allows them to manage hiring, onboarding and managing employee information, payroll processing and payroll tax administration, health insurance, and other benefits, from a single cloud-based software platform. We are not the co-employer or employer of record for such users. 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, 2023 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, 2022 (2022 Form 10-K). Certain prior year amounts have been reclassified to conform to current period presentation. Reclassifications Certain prior year amounts within operating activities of the Consolidated Statement of Cash Flows have been reclassified to conform to current period presentation. In particular, the amortization of deferred costs, consisting of costs to obtain contracts with customers, cloud computing implementation and debt issuance costs, were previously included in depreciation and amortization and are now separately classified as Amortization of deferred costs. 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 condensed consolidated financial statements could be materially affected. Revenue Recognition Variable Consideration and Pricing Allocation From time to time, we may offer credits to our clients considered to be variable consideration. Incentive credits related to contract renewals are recorded as a reduction to revenue as part of the transaction price at contract inception and are allocated among the performance obligations based on their relative standalone selling prices. We allocate the total transaction price to each performance obligation based on the estimated relative standalone selling prices of the promised services underlying each performance obligation. The transaction price for the payroll and payroll tax processing performance obligations is determined upon establishment of the contract that contains the final terms of the arrangement, including the description and price of each service purchased. The estimated service fee is determined based on observable inputs and include the following key assumptions: target profit margin, pricing strategies including the mix of services purchased and competitive factors, and client and industry specifics. The fees for access to health benefits and workers' compensation insurance performance obligations is determined during the new client on-boarding and enrollment processes based on the types of benefits coverage the WSEs have elected and the applicable risk profile of the client. We estimate our service fees based on actuarial forecasts of our expected insurance premiums and loss sensitive premium costs and amounts to cover our costs to administer these programs. We require our clients to prefund payroll and related taxes and other withholding liabilities before payroll is processed or due for payment. Under the provision of our contracts with clients, we generally will process the payment of a client’s payroll only when the client successfully funds the amount required. As a result, there is no financing arrangement for the contracts. However, certain contracts to provide payroll and payroll tax processing services permit the client to pay certain payroll tax components ratably over periods of up to 12 months rather than as payroll tax is otherwise determined and due, which may be considered a significant financing arrangement under ASC Topic 606. However, as the period between our performing the service under the contract and when the client pays for the service is less than one year, we have elected, as a practical expedient, not to adjust the transaction price. In previous years, we created our previously announced Recovery Credits to assist in the economic recovery of our existing PEO clients and enhance our ability to retain these clients. These credits were based on the performance of our insurance costs and were recorded as a reduction to insurance services revenues and included in client deposits and other client liabilities on the balance sheet. The change in balance for the liability for credits previously accrued is the following: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2023 2022 2023 2022 Balance at beginning of period $ 67 $ 35 $ 75 $ 48 (+) Accruals — 25 — 25 (-) Distributions to clients (17) (34) (25) (47) Balance at end of period $ 50 $ 26 $ 50 $ 26 Accrued Health Insurance Costs We sponsor and administer a number of employee benefit plans for our PEO WSEs, 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, 2023, 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 actuarial studies that include other relevant factors such as current and historical claims payment patterns, plan enrollment and medical trend rates. |
CASH, CASH EQUIVALENTS AND INVE
CASH, CASH EQUIVALENTS AND INVESTMENTS - UNRESTRICTED AND RESTRICTED | 6 Months Ended |
Jun. 30, 2023 | |
Cash and Cash Equivalents [Abstract] | |
CASH, CASH EQUIVALENTS AND INVESTMENTS - UNRESTRICTED AND RESTRICTED | CASH, CASH EQUIVALENTS AND INVESTMENTS - UNRESTRICTED AND RESTRICTED 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, 2023 December 31, 2022 (in millions) Cash and cash equivalents Available-for-sale marketable securities Total Cash and cash equivalents Available-for-sale marketable securities Total Cash and cash equivalents $ 482 $ — $ 482 $ 354 $ — $ 354 Investments — 69 69 — 76 76 Restricted cash, cash equivalents and investments: Payroll funds collected 875 — 875 1,062 — 1,062 Collateral for health benefits claims 31 110 141 29 110 139 Collateral for workers' compensation claims 55 — 55 58 — 58 Other security deposits 3 — 3 4 — 4 Total restricted cash, cash equivalents and investments 964 110 1,074 1,153 110 1,263 Investments, noncurrent — 146 146 — 151 151 Restricted cash, cash equivalents and investments, noncurrent Collateral for workers' compensation claims 24 130 154 27 123 150 Other security deposits 3 — 3 3 — 3 Total $ 1,473 $ 455 $ 1,928 $ 1,537 $ 460 $ 1,997 |
INVESTMENTS
INVESTMENTS | 6 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | NVESTMENTS The following tables summarize our financial instruments by significant categories and fair value measurement on a recurring basis as of June 30, 2023 and December 31, 2022 and the amortized cost, gross unrealized gains, gross unrealized losses, fair value of our AFS investments: (in millions) Fair Value Level Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and Cash Equivalents Investments Restricted Cash, Cash Equivalents and Investments June 30, 2023 Cash equivalents: Money market mutual funds Level 1 $ 163 $ — $ — $ 163 $ 77 $ — $ 86 U.S. treasuries Level 2 26 — — 26 26 — — Total cash equivalents 189 — — 189 103 — 86 AFS Investments: Asset-backed securities Level 2 47 — (2) 45 — 45 — Corporate bonds Level 2 122 — (1) 121 — 96 25 Agency securities Level 2 36 — (1) 35 — 6 29 U.S. treasuries Level 2 245 — (3) 242 — 62 180 Certificate of deposit Level 2 6 — — 6 — — 6 Other debt securities Level 2 6 — — 6 — 6 — Total AFS Investments $ 462 $ — $ (7) $ 455 $ — $ 215 $ 240 (in millions) Fair Value Level Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and Cash Equivalents Investments Restricted Cash, Cash Equivalents and Investments December 31, 2022 Cash equivalents: Money market mutual funds Level 1 $ 314 $ — $ — $ 314 $ 225 $ — $ 89 U.S. treasuries Level 2 18 — — 18 18 — — Total cash equivalents 332 — — 332 243 — 89 AFS Investments: Asset-backed securities Level 2 42 — (2) 40 — 40 — Corporate bonds Level 2 140 — (1) 139 — 112 27 Agency securities Level 2 33 — (1) 32 — 5 27 U.S. treasuries Level 2 229 — — 229 — 62 167 Certificate of deposit Level 2 12 — — 12 — — 12 Other debt securities Level 2 8 — — 8 — 7 1 Total AFS Investments $ 464 $ — $ (4) $ 460 $ — $ 226 $ 234 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 sheets as of June 30, 2023 and December 31, 2022. There were no transfers between levels as of June 30, 2023 and December 31, 2022. Sales and Maturities The fair value of debt investments by contractual maturity are shown below: (in millions) June 30, 2023 One year or less $ 84 Over one year through five years 341 Over five years through ten years 11 Over ten years 19 Total fair value $ 455 The gross proceeds from sales and maturities of AFS securities for the three and six months ended June 30, 2023 and June 30, 2022 are presented below. We had immaterial gross realized gains and losses from sales of investments for the first half of 2023 and 2022. Three Months Ended June 30, Six Months Ended June 30, (in millions) 2023 2022 2023 2022 Gross proceeds from sales $ 52 $ 21 $ 84 $ 43 Gross proceeds from maturities 45 83 89 132 Total $ 97 $ 104 $ 173 $ 175 Fair Value of Long-Term Debt |
ACCRUED WORKERS' COMPENSATION C
ACCRUED WORKERS' COMPENSATION COSTS | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 and 2022: Three Months Ended Six Months Ended (in millions) 2023 2022 2023 2022 Total accrued costs, beginning of period $ 187 $ 199 $ 189 $ 198 Incurred Current year 18 16 34 33 Prior years (17) (15) (23) (20) Total incurred 1 1 11 13 Paid Current year (1) (2) (2) (2) Prior years (9) (9) (20) (20) Total paid (10) (11) (22) (22) Total accrued costs, end of period $ 178 $ 189 $ 178 $ 189 The following summarizes workers' compensation liabilities on the condensed consolidated balance sheets: (in millions) June 30, 2023 December 31, 2022 Total accrued costs, end of period $ 178 $ 189 Collateral paid to carriers and offset against accrued costs (5) (7) Total accrued costs, net of carrier collateral offset $ 173 $ 182 Payable in less than 1 year $1 and $2 at June 30, 2023 and December 31, 2022, respectively) $ 51 $ 54 Payable in more than 1 year $4 and $5 at June 30, 2023 and December 31, 2022, respectively) 122 128 Total accrued costs, net of carrier collateral offset $ 173 $ 182 Incurred claims related to prior years represents changes in estimates for ultimate losses on workers' compensation claims. For the three and six months ended June 30, 2023, the favorable development is due to lower than expected reported claim frequency and severity for the more recent years. As of June 30, 2023 and December 31, 2022, we had $43 million for both periods of collateral held by insurance carriers of which $5 million and $7 million at June 30, 2023 and December 31, 2022, respectively was offset against accrued workers' compensation costs as the agreements permit and are net settled of insurance obligations against collateral held. |
LONG-TERM DEBT AND REVOLVING CR
LONG-TERM DEBT AND REVOLVING CREDIT AGREEMENTS | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT AND REVOLVING CREDIT AGREEMENTS | LONG-TERM DEBT AND REVOLVING CREDIT AGREEMENTS In March 2023, as a precaution to ensure we maintained liquidity during the uncertainty of the banking crisis that followed the failure of Silicon Valley Bank, we drew down the available $495 million of capacity under our 2021 Revolver. As concerns about market liquidity subsided, we repaid $200 million in March and the remaining $295 million in April. As of June 30, 2023, we had no borrowings outstanding under the 2021 Revolver. The annual interest rate for borrowings under our 2021 Revolver was previously calculated based on an applicable LIBOR tenor of our choosing, plus a margin of 1.25% to 2.00%, or, at our option, the alternative base rate (ABR), plus a margin of 0.25% to 1.00%. In the second quarter of 2023, we replaced the interest rate based on LIBOR and related LIBOR-based mechanics with an interest rate based on the forward-looking Secured Overnight Financing Rate (Term SOFR). Term SOFR loans will be charged interest at the Term SOFR rate (subject to a 0.00% floor), plus a margin between 1.25% and 2.00%, depending on the borrower’s total net leverage ratio, plus a credit adjustment spread of 10 basis points for all tenors (such Term SOFR rate plus the credit adjustment spread, the "Adjusted Term SOFR Rate"). The applicable Term SOFR or ABR margin is based on our Total Leverage Ratio, as defined in the 2021 Credit Agreement. The ABR is the highest of (a) the applicable Federal Reserve Bank of New York rate in effect on such day (which rate is the greater of the Federal funds Effective Rate in effect on such day and the Overnight Bank Funding Rate in effect on such day), as defined in our 2021 Credit Agreement plus 0.50% (b) the prime rate in effect on such day, and (c) the Adjusted Term SOFR Rate for a one month interest period, as published two U.S. Government Securities Business Days prior to such day daily plus 1.00%. The interest rate for 2023 borrowings under our 2021 Revolver was 7.875% - 8.125%. In the event TriNet Group, Inc. receives a Corporate Issuer Credit Rating that is one level below investment grade rating or higher from at least two Nationally Recognized Statistical Rating Organizations, then rating based pricing applies and, for so long as rating-based pricing applies, irrespective of the Total Leverage Ratio, the Term SOFR margin will be 1.125% and the ABR margin will be 0.125%. The indenture governing our 2029 Notes includes restrictive covenants limiting our ability to: (i) create liens on certain assets to secure debt; (ii) grant a subsidiary guarantee of certain debt without also providing a guarantee of the 2029 Notes; and (iii) consolidate or merge with or into, or sell or otherwise dispose of all or substantially all of our assets to, another person, subject, in each case, to certain customary exceptions. The 2021 Credit Agreement includes negative covenants that limit our ability to incur indebtedness and liens, sell assets and make restricted payments, including dividends and investments, subject to certain exceptions. In addition, the 2021 Credit Agreement also contains other customary affirmative and negative covenants and customary events of default. The 2021 Credit Agreement also contains a financial covenant that requires the Company to maintain certain maximum total net leverage ratios. We were in compliance with all financial covenants under the 2021 Credit Agreement at June 30, 2023. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Contingencies On September 29, 2020, a class action was filed in the United States District Court for the Middle District of Florida against the directors of certain TriNet subsidiaries and other TriNet employees on behalf of a putative class of participants in two retirement plans available to TriNet’s eligible worksite employees, the TriNet 401(k) Plan and the TriNet Select 401(k) Plan. The complaint is similar to claims recently brought against a number of employers including PEOs and generally alleges that the defendants violated certain fiduciary obligations to Plan participants under the Employee Retirement Income Security Act of 1974 with respect to overseeing plan investment and recordkeeping fees. On October 21, 2022, the court issued an order declining to certify a class with respect to claims against the TriNet 401(k) Plan, but certified a class with respect to claims against the TriNet Select 401(k) Plan. On April 26, 2023, the court entered an order granting TriNet's motion for summary judgment on all remaining claims. No appeal was timely filed and the matter is closed. 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 | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK BASED COMPENSATION | STOCK BASED COMPENSATION Restricted Stock Units (RSUs) Time-based RSUs generally vest over a four-year term. Performance-based RSUs are subject to vesting requirements and are 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 2023 and 2022 are earned based on a single-year performance period subject to subsequent multi-year time-based vesting with 50% of the shares earned vesting in one year after the performance period and the remaining shares in the year after. RSUs are generally forfeited if the participant terminates service prior to vesting. The following tables summarize RSU activity for the six months ended June 30, 2023: Time-based RSUs Total Number of RSUs Total Number of Shares Weighted-Average Grant Date Fair Value Nonvested at December 31, 2022 1,198,561 1,198,561 $ 80.75 Granted 748,096 748,096 77.22 Vested (302,926) (302,926) 76.34 Forfeited (64,172) (64,172) 82.91 Nonvested at June 30, 2023 1,579,559 1,579,559 $ 79.53 Performance-based RSUs Total Number of RSUs Total Number of Shares Weighted-Average Grant Date Fair Value Nonvested at December 31, 2022 202,586 202,586 $ 86.82 Granted 177,067 177,067 79.05 Nonvested at June 30, 2023 379,653 379,653 $ 83.20 Stock Based Compensation Stock based compensation expense for stock-based awards made to our employees pursuant to our equity plans were as follows: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2023 2022 2023 2022 Cost of providing services $ 4 $ 4 $ 7 $ 6 Sales and marketing 2 2 4 3 General and administrative 10 11 15 19 Systems development and programming costs 1 1 2 2 Total stock based compensation expense $ 17 $ 18 $ 28 $ 30 Total stock based compensation capitalized $ — $ — $ 1 $ — |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Common Stock The following table shows the beginning and ending balances of our issued and outstanding common stock for the three and six months ended June 30, 2023 and 2022: Three Months Ended Six Months Ended 2023 2022 2023 2022 Shares issued and outstanding, beginning balance 59,522,954 62,258,896 60,555,661 65,968,224 Issuance of common stock from vested restricted stock units 167,852 170,358 302,926 296,880 Issuance of common stock from exercise of stock options 41,876 43,700 81,667 72,389 Issuance of common stock for employee stock purchase plan 104,017 73,808 104,017 73,808 Issuance of common stock for the acquisition of Zenefits — — — 193,221 Repurchase of common stock (108,018) (408,478) (1,265,889) (4,419,423) Awards effectively repurchased for required employee withholding taxes (53,721) (50,981) (103,422) (97,796) Shares issued and outstanding, ending balance 59,674,960 62,087,303 59,674,960 62,087,303 Stock Repurchases |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Our ETR was 25% and 27% for the second quarter of 2023 and 2022, respectively and 27% and 27% for the first half of 2023 and 2022, respectively. The decrease in rates for the second quarter of 2023 compared with the same period in 2022 was primarily due to increase in tax credits and an increase in tax benefits related to stock-based compensation. We are subject to tax in U.S. federal and various state and local jurisdictions, as well as Canada and India. We are open to federal and significant state income tax examinations for tax years 2016 and subsequent years. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic EPS is computed based on the weighted average shares of common stock outstanding during the period. Diluted EPS is computed based on those shares used in the basic EPS computation, plus potentially dilutive shares issuable under our equity-based compensation plans using the treasury stock method. Shares that are potentially anti-dilutive are excluded. 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) 2023 2022 2023 2022 Net income $ 83 $ 85 $ 214 $ 230 Weighted average shares of common stock outstanding 60 62 60 64 Basic EPS $ 1.40 $ 1.36 $ 3.58 $ 3.62 Net income $ 83 $ 85 $ 214 $ 230 Weighted average shares of common stock outstanding 60 62 60 64 Dilutive effect of stock options and restricted stock units — 1 — — Weighted average shares of common stock outstanding 60 63 60 64 Diluted EPS $ 1.38 $ 1.35 $ 3.56 $ 3.58 Common stock equivalents excluded from income per diluted share because of their anti-dilutive effect — 1 1 1 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net income | $ 83 | $ 85 | $ 214 | $ 230 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
DESCRIPTION OF BUSINESS AND S_2
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES - (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Segment Information | Through our HCM services model, we provide cloud-based HCM services to small and medium-size businesses that allows them to manage hiring, onboarding and managing employee information, payroll processing and payroll tax administration, health insurance, and other benefits, from a single cloud-based software platform. We are not the co-employer or employer of record for such users.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, 2023 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, 2022 (2022 Form 10-K). Certain prior year amounts have been reclassified to conform to current period presentation. |
Reclassifications | Certain prior year amounts within operating activities of the Consolidated Statement of Cash Flows have been reclassified to conform to current period presentation. In particular, the amortization of deferred costs, consisting of costs to obtain contracts with customers, cloud computing implementation and debt issuance costs, were previously included in depreciation and amortization and are now separately classified as Amortization of deferred costs. |
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 condensed consolidated financial statements could be materially affected. |
Revenue Recognition | Variable Consideration and Pricing Allocation From time to time, we may offer credits to our clients considered to be variable consideration. Incentive credits related to contract renewals are recorded as a reduction to revenue as part of the transaction price at contract inception and are allocated among the performance obligations based on their relative standalone selling prices. We allocate the total transaction price to each performance obligation based on the estimated relative standalone selling prices of the promised services underlying each performance obligation. The transaction price for the payroll and payroll tax processing performance obligations is determined upon establishment of the contract that contains the final terms of the arrangement, including the description and price of each service purchased. The estimated service fee is determined based on observable inputs and include the following key assumptions: target profit margin, pricing strategies including the mix of services purchased and competitive factors, and client and industry specifics. The fees for access to health benefits and workers' compensation insurance performance obligations is determined during the new client on-boarding and enrollment processes based on the types of benefits coverage the WSEs have elected and the applicable risk profile of the client. We estimate our service fees based on actuarial forecasts of our expected insurance premiums and loss sensitive premium costs and amounts to cover our costs to administer these programs. We require our clients to prefund payroll and related taxes and other withholding liabilities before payroll is processed or due for payment. Under the provision of our contracts with clients, we generally will process the payment of a client’s payroll only when the client successfully funds the amount required. As a result, there is no financing arrangement for the contracts. However, certain contracts to provide payroll and payroll tax processing services permit the client to pay certain payroll tax components ratably over periods of up to 12 months rather than as payroll tax is otherwise determined and due, which may be considered a significant financing arrangement under ASC Topic 606. However, as the period between our performing the service under the contract and when the client pays for the service is less than one year, we have elected, as a practical expedient, not to adjust the transaction price. |
Accrued Health Insurance Costs | We sponsor and administer a number of employee benefit plans for our PEO WSEs, 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, 2023, 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 actuarial studies that include other relevant factors such as current and historical claims payment patterns, plan enrollment and medical trend rates. |
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). |
DESCRIPTION OF BUSINESS AND S_3
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES - (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Change in Balance of the Recovery Credit Unsatisfied Performance Obligation | The change in balance for the liability for credits previously accrued is the following: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2023 2022 2023 2022 Balance at beginning of period $ 67 $ 35 $ 75 $ 48 (+) Accruals — 25 — 25 (-) Distributions to clients (17) (34) (25) (47) Balance at end of period $ 50 $ 26 $ 50 $ 26 |
CASH, CASH EQUIVALENTS AND IN_2
CASH, CASH EQUIVALENTS AND INVESTMENTS - UNRESTRICTED AND RESTRICTED - (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash, Cash Equivalents and Investments | Our total cash, cash equivalents and investments are summarized below: June 30, 2023 December 31, 2022 (in millions) Cash and cash equivalents Available-for-sale marketable securities Total Cash and cash equivalents Available-for-sale marketable securities Total Cash and cash equivalents $ 482 $ — $ 482 $ 354 $ — $ 354 Investments — 69 69 — 76 76 Restricted cash, cash equivalents and investments: Payroll funds collected 875 — 875 1,062 — 1,062 Collateral for health benefits claims 31 110 141 29 110 139 Collateral for workers' compensation claims 55 — 55 58 — 58 Other security deposits 3 — 3 4 — 4 Total restricted cash, cash equivalents and investments 964 110 1,074 1,153 110 1,263 Investments, noncurrent — 146 146 — 151 151 Restricted cash, cash equivalents and investments, noncurrent Collateral for workers' compensation claims 24 130 154 27 123 150 Other security deposits 3 — 3 3 — 3 Total $ 1,473 $ 455 $ 1,928 $ 1,537 $ 460 $ 1,997 |
INVESTMENTS - (Tables)
INVESTMENTS - (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Financial Instruments by Significant Categories and Fair Value Measurement on a Recurring Basis | The following tables summarize our financial instruments by significant categories and fair value measurement on a recurring basis as of June 30, 2023 and December 31, 2022 and the amortized cost, gross unrealized gains, gross unrealized losses, fair value of our AFS investments: (in millions) Fair Value Level Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and Cash Equivalents Investments Restricted Cash, Cash Equivalents and Investments June 30, 2023 Cash equivalents: Money market mutual funds Level 1 $ 163 $ — $ — $ 163 $ 77 $ — $ 86 U.S. treasuries Level 2 26 — — 26 26 — — Total cash equivalents 189 — — 189 103 — 86 AFS Investments: Asset-backed securities Level 2 47 — (2) 45 — 45 — Corporate bonds Level 2 122 — (1) 121 — 96 25 Agency securities Level 2 36 — (1) 35 — 6 29 U.S. treasuries Level 2 245 — (3) 242 — 62 180 Certificate of deposit Level 2 6 — — 6 — — 6 Other debt securities Level 2 6 — — 6 — 6 — Total AFS Investments $ 462 $ — $ (7) $ 455 $ — $ 215 $ 240 (in millions) Fair Value Level Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and Cash Equivalents Investments Restricted Cash, Cash Equivalents and Investments December 31, 2022 Cash equivalents: Money market mutual funds Level 1 $ 314 $ — $ — $ 314 $ 225 $ — $ 89 U.S. treasuries Level 2 18 — — 18 18 — — Total cash equivalents 332 — — 332 243 — 89 AFS Investments: Asset-backed securities Level 2 42 — (2) 40 — 40 — Corporate bonds Level 2 140 — (1) 139 — 112 27 Agency securities Level 2 33 — (1) 32 — 5 27 U.S. treasuries Level 2 229 — — 229 — 62 167 Certificate of deposit Level 2 12 — — 12 — — 12 Other debt securities Level 2 8 — — 8 — 7 1 Total AFS Investments $ 464 $ — $ (4) $ 460 $ — $ 226 $ 234 |
Schedule of Fair value of Debt Investments by Contractual Maturity | The fair value of debt investments by contractual maturity are shown below: (in millions) June 30, 2023 One year or less $ 84 Over one year through five years 341 Over five years through ten years 11 Over ten years 19 Total fair value $ 455 |
Schedule of Available-for-Sale Securities | The gross proceeds from sales and maturities of AFS securities for the three and six months ended June 30, 2023 and June 30, 2022 are presented below. We had immaterial gross realized gains and losses from sales of investments for the first half of 2023 and 2022. Three Months Ended June 30, Six Months Ended June 30, (in millions) 2023 2022 2023 2022 Gross proceeds from sales $ 52 $ 21 $ 84 $ 43 Gross proceeds from maturities 45 83 89 132 Total $ 97 $ 104 $ 173 $ 175 |
ACCRUED WORKERS' COMPENSATION_2
ACCRUED WORKERS' COMPENSATION COSTS- (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Insurance [Abstract] | |
Schedule 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, 2023 and 2022: Three Months Ended Six Months Ended (in millions) 2023 2022 2023 2022 Total accrued costs, beginning of period $ 187 $ 199 $ 189 $ 198 Incurred Current year 18 16 34 33 Prior years (17) (15) (23) (20) Total incurred 1 1 11 13 Paid Current year (1) (2) (2) (2) Prior years (9) (9) (20) (20) Total paid (10) (11) (22) (22) Total accrued costs, end of period $ 178 $ 189 $ 178 $ 189 The following summarizes workers' compensation liabilities on the condensed consolidated balance sheets: (in millions) June 30, 2023 December 31, 2022 Total accrued costs, end of period $ 178 $ 189 Collateral paid to carriers and offset against accrued costs (5) (7) Total accrued costs, net of carrier collateral offset $ 173 $ 182 Payable in less than 1 year $1 and $2 at June 30, 2023 and December 31, 2022, respectively) $ 51 $ 54 Payable in more than 1 year $4 and $5 at June 30, 2023 and December 31, 2022, respectively) 122 128 Total accrued costs, net of carrier collateral offset $ 173 $ 182 |
STOCK BASED COMPENSATION - (Tab
STOCK BASED COMPENSATION - (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of RSU and RSA Activity under Equity-Based Plans | The following tables summarize RSU activity for the six months ended June 30, 2023: Time-based RSUs Total Number of RSUs Total Number of Shares Weighted-Average Grant Date Fair Value Nonvested at December 31, 2022 1,198,561 1,198,561 $ 80.75 Granted 748,096 748,096 77.22 Vested (302,926) (302,926) 76.34 Forfeited (64,172) (64,172) 82.91 Nonvested at June 30, 2023 1,579,559 1,579,559 $ 79.53 Performance-based RSUs Total Number of RSUs Total Number of Shares Weighted-Average Grant Date Fair Value Nonvested at December 31, 2022 202,586 202,586 $ 86.82 Granted 177,067 177,067 79.05 Nonvested at June 30, 2023 379,653 379,653 $ 83.20 |
Schedule of Stock-Based Compensation Expense | Stock based compensation expense for stock-based awards made to our employees pursuant to our equity plans were as follows: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2023 2022 2023 2022 Cost of providing services $ 4 $ 4 $ 7 $ 6 Sales and marketing 2 2 4 3 General and administrative 10 11 15 19 Systems development and programming costs 1 1 2 2 Total stock based compensation expense $ 17 $ 18 $ 28 $ 30 Total stock based compensation capitalized $ — $ — $ 1 $ — |
STOCKHOLDERS' EQUITY - (Tables)
STOCKHOLDERS' EQUITY - (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Schedule of Common Stock | The following table shows the beginning and ending balances of our issued and outstanding common stock for the three and six months ended June 30, 2023 and 2022: Three Months Ended Six Months Ended 2023 2022 2023 2022 Shares issued and outstanding, beginning balance 59,522,954 62,258,896 60,555,661 65,968,224 Issuance of common stock from vested restricted stock units 167,852 170,358 302,926 296,880 Issuance of common stock from exercise of stock options 41,876 43,700 81,667 72,389 Issuance of common stock for employee stock purchase plan 104,017 73,808 104,017 73,808 Issuance of common stock for the acquisition of Zenefits — — — 193,221 Repurchase of common stock (108,018) (408,478) (1,265,889) (4,419,423) Awards effectively repurchased for required employee withholding taxes (53,721) (50,981) (103,422) (97,796) Shares issued and outstanding, ending balance 59,674,960 62,087,303 59,674,960 62,087,303 |
EARNINGS PER SHARE - (Tables)
EARNINGS PER SHARE - (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted EPS Attributable to Common Stock | 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) 2023 2022 2023 2022 Net income $ 83 $ 85 $ 214 $ 230 Weighted average shares of common stock outstanding 60 62 60 64 Basic EPS $ 1.40 $ 1.36 $ 3.58 $ 3.62 Net income $ 83 $ 85 $ 214 $ 230 Weighted average shares of common stock outstanding 60 62 60 64 Dilutive effect of stock options and restricted stock units — 1 — — Weighted average shares of common stock outstanding 60 63 60 64 Diluted EPS $ 1.38 $ 1.35 $ 3.56 $ 3.58 Common stock equivalents excluded from income per diluted share because of their anti-dilutive effect — 1 1 1 |
DESCRIPTION OF BUSINESS AND S_4
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | |
Product Information [Line Items] | ||
Number of reportable segments | segment | 1 | |
Prepayments offsetting accrued health insurance costs | $ 59 | $ 57 |
Health Care | ||
Product Information [Line Items] | ||
Prepayments offsetting accrued health insurance costs | $ 77 | $ 73 |
Non-US | Revenue | Foreign Sales | ||
Product Information [Line Items] | ||
Percent of concentration risk (less than) | 1% |
DESCRIPTION OF BUSINESS AND S_5
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES - Schedule of Change in Balance of the Recovery Credit Unsatisfied Performance Obligation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Unsatisfied Performance Obligation [Roll Forward] | ||||
Balance at beginning of period | $ 67 | $ 35 | $ 75 | $ 48 |
(+) Accruals | 0 | 25 | 0 | 25 |
(-) Distributions to clients | (17) | (34) | (25) | (47) |
Balance at end of period | $ 50 | $ 26 | $ 50 | $ 26 |
CASH, CASH EQUIVALENTS AND IN_3
CASH, CASH EQUIVALENTS AND INVESTMENTS - UNRESTRICTED AND RESTRICTED (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Cash and cash equivalents | $ 482 | $ 354 |
Investments | 69 | 76 |
Total restricted cash, cash equivalents and investments | 1,074 | 1,263 |
Investments, noncurrent | 146 | 151 |
Restricted cash, cash equivalents and investments, noncurrent | 157 | 153 |
Total | 1,928 | 1,997 |
Cash and cash equivalents | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Cash and cash equivalents | 482 | 354 |
Investments | 0 | 0 |
Total restricted cash, cash equivalents and investments | 964 | 1,153 |
Investments, noncurrent | 0 | 0 |
Total | 1,473 | 1,537 |
Available-for-sale marketable securities | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Investments | 69 | 76 |
Total restricted cash, cash equivalents and investments | 110 | 110 |
Investments, noncurrent | 146 | 151 |
Total | 455 | 460 |
Payroll funds collected | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash, cash equivalents and investments | 875 | 1,062 |
Payroll funds collected | Cash and cash equivalents | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash, cash equivalents and investments | 875 | 1,062 |
Payroll funds collected | Available-for-sale marketable securities | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash, cash equivalents and investments | 0 | 0 |
Collateral for health benefits claims | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash, cash equivalents and investments | 141 | 139 |
Collateral for health benefits claims | Cash and cash equivalents | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash, cash equivalents and investments | 31 | 29 |
Collateral for health benefits claims | Available-for-sale marketable securities | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash, cash equivalents and investments | 110 | 110 |
Collateral for workers' compensation claims | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash, cash equivalents and investments | 55 | 58 |
Restricted cash, cash equivalents and investments, noncurrent | 154 | 150 |
Collateral for workers' compensation claims | Cash and cash equivalents | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash, cash equivalents and investments | 55 | 58 |
Restricted cash, cash equivalents and investments, noncurrent | 24 | 27 |
Collateral for workers' compensation claims | Available-for-sale marketable securities | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash, cash equivalents and investments | 0 | 0 |
Restricted cash, cash equivalents and investments, noncurrent | 130 | 123 |
Other security deposits | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash, cash equivalents and investments | 3 | 4 |
Restricted cash, cash equivalents and investments, noncurrent | 3 | 3 |
Other security deposits | Cash and cash equivalents | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash, cash equivalents and investments | 3 | 4 |
Restricted cash, cash equivalents and investments, noncurrent | 3 | 3 |
Other security deposits | Available-for-sale marketable securities | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash, cash equivalents and investments | 0 | 0 |
Restricted cash, cash equivalents and investments, noncurrent | $ 0 | $ 0 |
INVESTMENTS - Schedule of Finan
INVESTMENTS - Schedule of Financial Instruments by Significant Categories and Fair Value Measurement on a Recurring Basis (Details) - Fair Value Measurement on a Recurring Basis - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Securities | ||
Cash equivalents: | $ 189 | $ 332 |
Amortized Cost | 462 | 464 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (7) | (4) |
Fair Value | 455 | 460 |
Cash and Cash Equivalents | ||
Debt Securities | ||
Cash equivalents: | 103 | 243 |
Fair Value | 0 | 0 |
Investments | ||
Debt Securities | ||
Cash equivalents: | 0 | 0 |
Fair Value | 215 | 226 |
Restricted Cash, Cash Equivalents and Investments | ||
Debt Securities | ||
Cash equivalents: | 86 | 89 |
Fair Value | 240 | 234 |
Asset-backed securities | Level 2 | ||
Debt Securities | ||
Amortized Cost | 47 | 42 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (2) | (2) |
Fair Value | 45 | 40 |
Asset-backed securities | Level 2 | Cash and Cash Equivalents | ||
Debt Securities | ||
Fair Value | 0 | 0 |
Asset-backed securities | Level 2 | Investments | ||
Debt Securities | ||
Fair Value | 45 | 40 |
Asset-backed securities | Level 2 | Restricted Cash, Cash Equivalents and Investments | ||
Debt Securities | ||
Fair Value | 0 | 0 |
Corporate bonds | Level 2 | ||
Debt Securities | ||
Amortized Cost | 122 | 140 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1) | (1) |
Fair Value | 121 | 139 |
Corporate bonds | Level 2 | Cash and Cash Equivalents | ||
Debt Securities | ||
Fair Value | 0 | 0 |
Corporate bonds | Level 2 | Investments | ||
Debt Securities | ||
Fair Value | 96 | 112 |
Corporate bonds | Level 2 | Restricted Cash, Cash Equivalents and Investments | ||
Debt Securities | ||
Fair Value | 25 | 27 |
Agency securities | Level 2 | ||
Debt Securities | ||
Amortized Cost | 36 | 33 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1) | (1) |
Fair Value | 35 | 32 |
Agency securities | Level 2 | Cash and Cash Equivalents | ||
Debt Securities | ||
Fair Value | 0 | 0 |
Agency securities | Level 2 | Investments | ||
Debt Securities | ||
Fair Value | 6 | 5 |
Agency securities | Level 2 | Restricted Cash, Cash Equivalents and Investments | ||
Debt Securities | ||
Fair Value | 29 | 27 |
U.S. treasuries | Level 2 | ||
Debt Securities | ||
Amortized Cost | 245 | 229 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (3) | 0 |
Fair Value | 242 | 229 |
U.S. treasuries | Level 2 | Cash and Cash Equivalents | ||
Debt Securities | ||
Fair Value | 0 | 0 |
U.S. treasuries | Level 2 | Investments | ||
Debt Securities | ||
Fair Value | 62 | 62 |
U.S. treasuries | Level 2 | Restricted Cash, Cash Equivalents and Investments | ||
Debt Securities | ||
Fair Value | 180 | 167 |
Certificate of deposit | Level 2 | ||
Debt Securities | ||
Amortized Cost | 6 | 12 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 6 | 12 |
Certificate of deposit | Level 2 | Cash and Cash Equivalents | ||
Debt Securities | ||
Fair Value | 0 | 0 |
Certificate of deposit | Level 2 | Investments | ||
Debt Securities | ||
Fair Value | 0 | 0 |
Certificate of deposit | Level 2 | Restricted Cash, Cash Equivalents and Investments | ||
Debt Securities | ||
Fair Value | 6 | 12 |
Other debt securities | Level 2 | ||
Debt Securities | ||
Amortized Cost | 6 | 8 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 6 | 8 |
Other debt securities | Level 2 | Cash and Cash Equivalents | ||
Debt Securities | ||
Fair Value | 0 | 0 |
Other debt securities | Level 2 | Investments | ||
Debt Securities | ||
Fair Value | 6 | 7 |
Other debt securities | Level 2 | Restricted Cash, Cash Equivalents and Investments | ||
Debt Securities | ||
Fair Value | 0 | 1 |
Money market mutual funds | Level 1 | ||
Debt Securities | ||
Cash equivalents: | 163 | 314 |
Money market mutual funds | Level 1 | Cash and Cash Equivalents | ||
Debt Securities | ||
Cash equivalents: | 77 | 225 |
Money market mutual funds | Level 1 | Investments | ||
Debt Securities | ||
Cash equivalents: | 0 | 0 |
Money market mutual funds | Level 1 | Restricted Cash, Cash Equivalents and Investments | ||
Debt Securities | ||
Cash equivalents: | 86 | 89 |
U.S. treasuries | Level 2 | ||
Debt Securities | ||
Cash equivalents: | 26 | 18 |
U.S. treasuries | Level 2 | Cash and Cash Equivalents | ||
Debt Securities | ||
Cash equivalents: | 26 | 18 |
U.S. treasuries | Level 2 | Investments | ||
Debt Securities | ||
Cash equivalents: | 0 | 0 |
U.S. treasuries | Level 2 | Restricted Cash, Cash Equivalents and Investments | ||
Debt Securities | ||
Cash equivalents: | $ 0 | $ 0 |
INVESTMENTS - Schedule of Fair
INVESTMENTS - Schedule of Fair value of Debt Investments by Contractual Maturity (Details) $ in Millions | Jun. 30, 2023 USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
One year or less | $ 84 |
Over one year through five years | 341 |
Over five years through ten years | 11 |
Over ten years | 19 |
Total fair value | $ 455 |
INVESTMENTS - Schedule of Avail
INVESTMENTS - Schedule of Available-for-Sale Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Gross proceeds from sales | $ 52 | $ 21 | $ 84 | $ 43 |
Gross proceeds from maturities | 45 | 83 | 89 | 132 |
Total | $ 97 | $ 104 | $ 173 | $ 175 |
INVESTMENTS - Additional Inform
INVESTMENTS - Additional Information (Details) $ in Millions | Jun. 30, 2023 USD ($) |
2029 Notes Payable | |
Debt Securities, Available-for-sale [Line Items] | |
Fair value of notes payable | $ 436 |
ACCRUED WORKERS' COMPENSATION_3
ACCRUED WORKERS' COMPENSATION COSTS - Schedule of Workers' Compensation Loss Reserve Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||
Total accrued costs, beginning of period | $ 187 | $ 199 | $ 189 | $ 198 |
Incurred | ||||
Current year | 18 | 16 | 34 | 33 |
Prior years | (17) | (15) | (23) | (20) |
Total incurred | 1 | 1 | 11 | 13 |
Paid | ||||
Current year | (1) | (2) | (2) | (2) |
Prior years | (9) | (9) | (20) | (20) |
Total paid | (10) | (11) | (22) | (22) |
Total accrued costs, end of period | $ 178 | $ 189 | $ 178 | $ 189 |
ACCRUED WORKERS' COMPENSATION_4
ACCRUED WORKERS' COMPENSATION COSTS - Schedule of Workers' Compensation Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Insurance [Abstract] | ||||||
Total accrued costs, end of period | $ 178 | $ 187 | $ 189 | $ 189 | $ 199 | $ 198 |
Collateral paid to carriers and offset against accrued costs | (5) | (7) | ||||
Total accrued costs, net of carrier collateral offset | 173 | 182 | ||||
Payable in less than 1 year (net of collateral paid to carriers) | 51 | 54 | ||||
Payable in more than 1 year (net of collateral paid to carriers) | 122 | 128 | ||||
Total accrued costs, net of carrier collateral offset | 173 | 182 | ||||
Net of collateral paid to carriers, payable in less than one year | 1 | (2) | ||||
Net of collateral paid to carriers, payable in more than 1 year | $ (4) | $ 5 |
ACCRUED WORKERS' COMPENSATION_5
ACCRUED WORKERS' COMPENSATION COSTS - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Insurance [Abstract] | ||
Collateral held by insurance carriers | $ 43 | $ 43 |
Collateral paid to carriers and offset against loss reserves | $ 5 | $ 7 |
LONG-TERM DEBT AND REVOLVING _2
LONG-TERM DEBT AND REVOLVING CREDIT AGREEMENTS - (Details) - 2021 Revolving Credit Facility - Line of credit - Revolving Credit Facility - USD ($) | 1 Months Ended | 6 Months Ended | |
Mar. 31, 2023 | Jun. 30, 2023 | Apr. 30, 2023 | |
Line of Credit Facility [Line Items] | |||
Remaining borrowing capacity | $ 495,000,000 | $ 295,000,000 | |
Repayments of debt | $ 200,000,000 | ||
Borrowings outstanding | $ 0 | ||
Base Rate | Credit Rating Below Investment Grade | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 0.125% | ||
Secured Overnight Financing Rate | |||
Line of Credit Facility [Line Items] | |||
Borrowing rate | 0% | ||
Secured Overnight Financing Rate | Credit Rating Below Investment Grade | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.125% | ||
Adjusted Term SOFR Rate | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 0.10% | ||
Fed Funds Effective Rate Overnight Index Swap Rate | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 0.50% | ||
One Month Term SOFR | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1% | ||
Minimum | |||
Line of Credit Facility [Line Items] | |||
Borrowing rate | 7.875% | ||
Minimum | London Interbank Offered Rate | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.25% | ||
Minimum | Base Rate | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 0.25% | ||
Minimum | Secured Overnight Financing Rate | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.25% | ||
Maximum | |||
Line of Credit Facility [Line Items] | |||
Borrowing rate | 8.125% | ||
Maximum | London Interbank Offered Rate | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 2% | ||
Maximum | Base Rate | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1% | ||
Maximum | Secured Overnight Financing Rate | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 2% |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | Sep. 29, 2020 retirement_plan |
Commitments and Contingencies Disclosure [Abstract] | |
Number of retirement plans subject to class action | 2 |
STOCK BASED COMPENSATION - Addi
STOCK BASED COMPENSATION - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2023 | |
Time-Based Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period (in years) | 4 years |
Time-based RSUs and RSAs | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percent of share value | 0% |
Time-based RSUs and RSAs | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percent of share value | 200% |
Performance-based RSUs and RSAs | Share-based Payment Arrangement, Tranche One | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period (in years) | 1 year |
Amount of shares that are expected to vest (as a percent ) | 50% |
STOCK BASED COMPENSATION - Sche
STOCK BASED COMPENSATION - Schedule of RSU and RSA Activity under Equity-Based Plans (Details) | 6 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Time-Based Restricted Stock Units | |
Number of Shares | |
Balance (in shares) | shares | 1,198,561 |
Granted (in shares) | shares | 748,096 |
Vested (in shares) | shares | (302,926) |
Forfeited (in shares) | shares | (64,172) |
Balance (in shares) | shares | 1,579,559 |
Weighted-Average Grant Date Fair Value | |
Balance (in dollars per share) | $ / shares | $ 80.75 |
Granted (in dollars per share) | $ / shares | 77.22 |
Vested (in dollars per share) | $ / shares | 76.34 |
Forfeited (in dollars per share) | $ / shares | 82.91 |
Balance (in dollars per share) | $ / shares | $ 79.53 |
Performance-Based Restricted Stock Units | |
Number of Shares | |
Balance (in shares) | shares | 202,586 |
Granted (in shares) | shares | 177,067 |
Balance (in shares) | shares | 379,653 |
Weighted-Average Grant Date Fair Value | |
Balance (in dollars per share) | $ / shares | $ 86.82 |
Granted (in dollars per share) | $ / shares | 79.05 |
Balance (in dollars per share) | $ / shares | $ 83.20 |
STOCK BASED COMPENSATION - Sc_2
STOCK BASED COMPENSATION - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock based compensation expense | $ 18 | $ 30 | ||
Total stock based compensation capitalized | $ 0 | 0 | $ 1 | 0 |
Cost of providing services | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock based compensation expense | 4 | 4 | 7 | 6 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock based compensation expense | 2 | 2 | 4 | 3 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock based compensation expense | 10 | 11 | 15 | 19 |
Systems development and programming costs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock based compensation expense | $ 1 | $ 1 | $ 2 | $ 2 |
STOCKHOLDERS' EQUITY - Schedule
STOCKHOLDERS' EQUITY - Schedule of Common Stock (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Shares issued and outstanding, beginning balance (in shares) | 59,522,954 | 62,258,896 | 60,555,661 | 65,968,224 |
Shares issued and outstanding, beginning balance (in shares) | 59,522,954 | 62,258,896 | 60,555,661 | 65,968,224 |
Issuance of common stock for the acquisition of Zenefits (in shares) | 0 | 0 | 0 | 193,221 |
Repurchase of common stock (in shares) | (108,018) | (408,478) | (1,265,889) | (4,419,423) |
Awards effectively repurchased for required employee withholding taxes (in shares) | (53,721) | (50,981) | (103,422) | (97,796) |
Shares issued and outstanding, ending balance (in shares) | 59,674,960 | 62,087,303 | 59,674,960 | 62,087,303 |
Shares issued and outstanding, ending balance (in shares) | 59,674,960 | 62,087,303 | 59,674,960 | 62,087,303 |
Issuance of common stock from vested restricted stock units | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of common stock from vested restricted stock units (in shares) | 167,852 | 170,358 | 302,926 | 296,880 |
Issuance of common stock from exercise of stock options | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of common stock from exercise of stock options (in shares) | 41,876 | 43,700 | 81,667 | 72,389 |
Issuance of common stock for employee stock purchase plan | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of common stock for employee stock purchase plan (in shares) | 104,017 | 73,808 | 104,017 | 73,808 |
STOCKHOLDERS' EQUITY - Addition
STOCKHOLDERS' EQUITY - Additional Information (Details) - USD ($) $ in Millions | Jul. 26, 2023 | Feb. 28, 2023 | Nov. 30, 2022 | Feb. 28, 2022 | Feb. 28, 2020 |
Equity [Abstract] | |||||
Stock repurchase program, authorized amount | $ 300 | $ 200 | $ 300 | $ 300 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock repurchase program, authorized amount | $ 300 | $ 200 | $ 300 | $ 300 | |
Subsequent Event | |||||
Equity [Abstract] | |||||
Stock repurchase program, authorized amount | $ 1,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock repurchase program, authorized amount | $ 1,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 25% | 27% | 27% | 27% |
EARNINGS PER SHARE - Schedule o
EARNINGS PER SHARE - Schedule of Computation of Basic and Diluted EPS Attributable to Common Stock (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 83 | $ 85 | $ 230 | |
Weighted average shares of common stock outstanding (in shares) | 60 | 62 | 60 | 64 |
Basic EPS (in dollars per share) | $ 1.40 | $ 1.36 | $ 3.58 | $ 3.62 |
Net income | $ 83 | $ 85 | $ 214 | $ 230 |
Dilutive effect of stock options and restricted stock units (in shares) | 0 | 1 | 0 | 0 |
Weighted average shares of common stock outstanding - diluted (in shares) | 60 | 63 | 60 | 64 |
Diluted EPS (in dollars per share) | $ 1.38 | $ 1.35 | $ 3.56 | $ 3.58 |
Common stock equivalents excluded from income per diluted share because of their anti-dilutive effect (in shares) | 0 | 1 | 1 | 1 |