Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 19, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
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 $0.000025 per share | |
Trading Symbol | TNET | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 49,672,774 | |
Entity Central Index Key | 0000937098 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Total revenues | $ 1,226 | $ 1,209 | $ 2,490 | $ 2,455 |
Insurance costs | 916 | 868 | 1,823 | 1,720 |
Cost of providing services | 75 | 79 | 154 | 156 |
Sales and marketing | 72 | 70 | 144 | 139 |
General and administrative | 47 | 60 | 95 | 103 |
Systems development and programming | 17 | 17 | 35 | 34 |
Depreciation and amortization of intangible assets | 19 | 18 | 37 | 36 |
Total costs and operating expenses | 1,146 | 1,112 | 2,288 | 2,188 |
Operating income | 80 | 97 | 202 | 267 |
Other income (expense): | ||||
Interest expense, bank fees and other | (16) | (6) | (32) | (13) |
Interest income | 17 | 20 | 35 | 38 |
Income before provision for income taxes | 81 | 111 | 205 | 292 |
Income taxes | 21 | 28 | 53 | 78 |
Net income | 60 | 83 | 152 | 214 |
Other comprehensive income (loss), net of income taxes | 0 | (4) | (3) | (1) |
Comprehensive income | $ 60 | $ 79 | $ 149 | $ 213 |
Net income per share: | ||||
Basic (in dollars per share) | $ 1.21 | $ 1.40 | $ 3.01 | $ 3.58 |
Diluted (in dollars per share) | $ 1.20 | $ 1.38 | $ 2.98 | $ 3.56 |
Weighted average shares: | ||||
Basic (in shares) | 50 | 60 | 50 | 60 |
Diluted (in shares) | 51 | 60 | 51 | 60 |
Professional service revenues | ||||
Total revenues | $ 186 | $ 177 | $ 400 | $ 382 |
Insurance service revenues | ||||
Total revenues | $ 1,040 | $ 1,032 | $ 2,090 | $ 2,073 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 177 | $ 287 |
Investments | 72 | 65 |
Restricted cash, cash equivalents and investments | 893 | 1,269 |
Accounts receivable, net | 15 | 18 |
Unbilled revenue, net | 485 | 447 |
Prepaid expenses, net | 76 | 67 |
Other payroll assets | 800 | 381 |
Other current assets | 48 | 44 |
Total current assets | 2,566 | 2,578 |
Restricted cash, cash equivalents and investments, noncurrent | 163 | 158 |
Investments, noncurrent | 156 | 143 |
Property and equipment, net | 14 | 17 |
Operating lease right-of-use asset | 21 | 24 |
Goodwill | 462 | 462 |
Software and other intangible assets, net | 176 | 172 |
Other assets | 145 | 139 |
Total assets | 3,703 | 3,693 |
Current liabilities: | ||
Accounts payable and other current liabilities | 85 | 87 |
Revolving credit agreement borrowings | 84 | 109 |
Client deposits and other client liabilities | 70 | 65 |
Accrued wages | 558 | 515 |
Accrued health insurance costs, net | 182 | 175 |
Accrued workers' compensation costs, net | 43 | 50 |
Payroll tax liabilities and other payroll withholdings | 1,421 | 1,438 |
Operating lease liabilities | 13 | 14 |
Insurance premiums and other payables | 7 | 10 |
Total current liabilities | 2,463 | 2,463 |
Long-term debt, noncurrent | 984 | 984 |
Accrued workers' compensation costs, noncurrent, net | 107 | 120 |
Deferred taxes | 13 | 13 |
Operating lease liabilities, noncurrent | 24 | 30 |
Other non-current liabilities | 12 | 5 |
Total liabilities | 3,603 | 3,615 |
Commitments and contingencies (see Note 5) | ||
Stockholders' equity: | ||
Preferred stock | 0 | 0 |
Common stock and additional paid-in capital | 1,021 | 976 |
Accumulated deficit | (916) | (896) |
Accumulated other comprehensive loss | (5) | (2) |
Total stockholders' equity | 100 | 78 |
Total liabilities & stockholders' equity | $ 3,703 | $ 3,693 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 |
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 and additional paid-in capital | ||
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) | 49,710,395 | 50,664,471 |
Common stock, shares outstanding (in shares) | 49,710,395 | 50,664,471 |
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, 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 | |||
Stock based compensation expense | 28 | |||
Net income | 214 | 214 | ||
Common stock dividends | 0 | 0 | ||
Repurchase of common stock | (98) | |||
Awards effectively repurchased for required employee withholding taxes | (9) | |||
Other comprehensive income (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 | |||
Stock based compensation expense | 17 | |||
Net income | 83 | 83 | ||
Common stock dividends | 0 | |||
Repurchase of common stock | (8) | |||
Awards effectively repurchased for required employee withholding taxes | (5) | |||
Other comprehensive income (loss) | (4) | (4) | ||
Ending balance at Jun. 30, 2023 | 915 | 934 | (13) | (6) |
Beginning balance at Dec. 31, 2023 | 78 | 976 | (896) | (2) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of common stock from exercise of stock options | 0 | |||
Issuance of common stock for employee stock purchase plan | 7 | |||
Stock based compensation expense | 38 | |||
Net income | 152 | 152 | ||
Common stock dividends | (12) | (25) | ||
Repurchase of common stock | (135) | |||
Awards effectively repurchased for required employee withholding taxes | (12) | |||
Other comprehensive income (loss) | (3) | (3) | ||
Ending balance at Jun. 30, 2024 | 100 | 1,021 | (916) | (5) |
Beginning balance at Mar. 31, 2024 | 143 | 996 | (848) | (5) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of common stock from exercise of stock options | 0 | |||
Issuance of common stock for employee stock purchase plan | 7 | |||
Stock based compensation expense | 18 | |||
Net income | 60 | 60 | ||
Common stock dividends | (12) | |||
Repurchase of common stock | (111) | |||
Awards effectively repurchased for required employee withholding taxes | (5) | |||
Other comprehensive income (loss) | 0 | 0 | ||
Ending balance at Jun. 30, 2024 | $ 100 | $ 1,021 | $ (916) | $ (5) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Operating activities | ||
Net income | $ 152 | $ 214 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization of intangible assets | 37 | 36 |
Amortization of deferred costs | 21 | 20 |
Amortization of ROU asset, lease modification, impairment, and abandonment | 3 | 2 |
Stock based compensation | 38 | 28 |
Other | 1 | 2 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 3 | (1) |
Unbilled revenue, net | (38) | 12 |
Prepaid expenses, net | (9) | (24) |
Other assets | (33) | 0 |
Other payroll assets | (419) | 68 |
Accounts payable and other liabilities | (11) | 0 |
Client deposits and other client liabilities | 5 | (27) |
Accrued wages | 43 | 0 |
Accrued health insurance costs, net | 7 | (5) |
Accrued workers' compensation costs, net | (21) | (9) |
Payroll taxes payable and other payroll withholdings | (17) | (241) |
Operating lease liabilities | (7) | (8) |
Net cash provided by (used in) operating activities | (245) | 67 |
Investing activities | ||
Purchases of marketable securities | (139) | (170) |
Proceeds from sale and maturity of marketable securities | 125 | 173 |
Acquisitions of property and equipment and software | (35) | (34) |
Net cash used in investing activities | (49) | (31) |
Financing activities | ||
Repurchase of common stock | (135) | (98) |
Proceeds from issuance of common stock | 7 | 7 |
Proceeds from revolving credit agreement borrowings | 0 | 495 |
Revolver repayment | 0 | (495) |
Awards effectively repurchased for required employee withholding taxes | (12) | (9) |
Repayment of revolving credit agreement borrowings | (25) | 0 |
Dividends paid | (13) | 0 |
Net cash provided by (used in) financing activities | (178) | (100) |
Net change in cash and cash equivalents, unrestricted and restricted | (472) | (64) |
Cash and cash equivalents, unrestricted and restricted: | ||
Beginning of period | 1,466 | 1,537 |
End of period | 994 | 1,473 |
Supplemental disclosures of cash flow information | ||
Interest paid | 30 | 12 |
Income taxes paid, net | 62 | 58 |
Supplemental schedule of noncash investing and financing activities | ||
Cash dividend declared, but not yet paid | 12 | 0 |
Payable for purchase of property and equipment | $ 2 | $ 5 |
DESCRIPTION OF BUSINESS AND SIG
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2024 | |
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 PEO model and an HRIS services 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 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 • workers' compensation coverage. Our PEO clients are responsible for the day-to-day job responsibilities of the WSEs. Through our HRIS services model, we provide cloud-based HCM services to SMBs that allows them to manage hiring, onboarding, employee information, payroll processing, 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 employees. 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 and Basis of Consolidation 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. The unaudited condensed consolidated financial statements include the accounts of the Company and an entity consolidated under the variable interest model. Intercompany balances and transactions have been eliminated. 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, 2024 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, 2023. Certain prior year amounts have been reclassified to conform to current period presentation. When entering into contractual arrangements with other entities, we assess whether we have a variable interest. If we determine that we have a variable interest, we then determine whether the arrangement is with a variable interest entity ("VIE"). If the arrangement is with a VIE, we assess whether we are the primary beneficiary of the VIE by identifying the most significant activities and determining who has the power over those activities and who has the obligation to absorb the majority of the losses or benefits of the VIE. We consolidate a VIE when we have the power to direct activities that most significantly affect the economic performance of the VIE and have the obligation to absorb the majority of their losses or benefits, making us the primary beneficiary. Periodically, we assess whether any changes in our interest or relationship with the entity affect our determination of whether the entity is a VIE and, if so, whether we are the primary beneficiary. In December 2023, we created a trust ("TriNet Trust") for the purpose of holding HRIS clients' payroll funds for the remittance to HRIS Users, tax authorities and other recipients. TriNet Trust's assets are restricted and can only be used for payments on behalf of HRIS clients, payments on behalf of the HRIS Users, repayments of any advances from TriNet, or payments to TriNet of interest income earned on the balances of TriNet Trust. In the event of any losses, creditors to the Trust have recourse to TriNet Trust's property and not that of TriNet overall. The risks associated with the Trust are similar to those that currently exist for the Company such as banking losses in excess of FDIC insurance levels, interest rate and market conditions. We determined that TriNet Trust meets the definition of a variable interest entity and as the primary beneficiary we have both the power to direct TriNet Trust’s activities that most significantly affect its performance and we have the right to receive benefits from TriNet Trust, in the form of interest income. As a result, TriNet Trust is consolidated into our financial statements. During the first quarter of 2024, TriNet Trust assumed ownership and responsibility of certain bank accounts that hold HRIS client funds and assumed related liabilities. The following table presents the assets and liabilities of TriNet Trust which are included in our consolidated balance sheet. These amounts on any particular date can vary due to timing of cash receipts and remittance to HRIS users and payroll tax agencies. June 30, (in millions) 2024 ASSETS Current assets: Cash and cash equivalents $ 1 Restricted cash, cash equivalents and investments 91 Total current assets 92 Total assets $ 92 LIABILITIES Current liabilities: Accounts payable and other current liabilities $ 1 Accrued wages 14 Payroll tax liabilities and other payroll withholdings 78 Total current liabilities 92 Total liabilities $ 92 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 includes 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 are determined during client on-boarding and annually through the 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 FASB ASC Topic 606 Revenue from Contracts with Customers. 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 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 consolidated balance sheets. As of June 30, 2024, all Recovery Credits have been distributed to clients. 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) 2024 2023 2024 2023 Balance at beginning of period $ — $ 67 $ 7 $ 75 (+) Accruals — — — — (-) Distributions to clients — (17) (7) (25) Balance at end of period $ — $ 50 $ — $ 50 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, 2024, the majority of our group health insurance costs were 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 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. In certain carrier contracts we are required to prepay our obligations for the expected claims activity for subsequent periods. These prepaid balances by agreement permit net settlement of obligations and offset the accrued health insurance costs. As of June 30, 2024 and December 31, 2023, prepayments and miscellaneous receivables offsetting accrued health insurance costs were $59 million and $58 million, respectively. When the prepaid amount is in excess of our recorded liability the net asset position is included in prepaid expenses. As of June 30, 2024 and December 31, 2023, accrued health insurance costs offsetting prepaid expenses were $73 million and $68 million, respectively. Restricted Cash, Cash Equivalents and Investments Restricted cash, cash equivalents and investments presented on our consolidated balance sheets include: • cash and cash equivalents in trust accounts functioning as security deposits for our insurance carriers, • payroll funds collected representing cash collected in advance from clients which we designate as restricted for the purpose of funding WSE and HRIS User payroll and payroll taxes and other payroll related liabilities, and • amounts held in trust for current and future premium and claim obligations with our insurance carriers, which amounts are held in trust according to the terms of the relevant insurance policies and by the local insurance regulations of the jurisdictions in which the policies are in force. Recent Accounting Pronouncements Recently issued accounting guidance Income Taxes In December 2023, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”), which will require the Company to disclose specified additional information in its income tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. ASU 2023-09 will also require the Company to disaggregate its income taxes paid disclosure by federal, state and foreign taxes, with further disaggregation required for significant individual jurisdictions. The ASU is effective for TriNet on a prospective basis for annual periods beginning after December 15, 2024. We are currently evaluating the provisions of this ASU. Segment Reporting In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which will require the Company to disclose segment expenses that are significant and regularly provided to the Company’s chief operating decision maker (“CODM”). In addition, ASU 2023-07 will require the Company to disclose the title and position of its CODM and how the CODM uses segment profit or loss information in assessing segment performance and deciding how to allocate resources. The ASU is effective for TriNet for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. We are currently evaluating the provisions of this ASU. |
CASH, CASH EQUIVALENTS AND INVE
CASH, CASH EQUIVALENTS AND INVESTMENTS - UNRESTRICTED AND RESTRICTED | 6 Months Ended |
Jun. 30, 2024 | |
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, for PEO customers, as well as amounts held by our statutory trust for our HRIS Users, 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 AFS. Our total cash, cash equivalents and investments are summarized below: June 30, 2024 December 31, 2023 (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 $ 177 $ — $ 177 $ 287 $ — $ 287 Investments — 72 72 — 65 65 Restricted cash, cash equivalents and investments: Payroll funds collected 605 — 605 1,067 — 1,067 Collateral for health benefits claims 34 113 147 31 113 144 Collateral for workers' compensation claims 48 — 48 54 2 56 Trust for our HRIS Users 91 — 91 — — — Other security deposits 2 — 2 2 — 2 Total restricted cash, cash equivalents and investments 780 113 893 1,154 115 1,269 Investments, noncurrent — 156 156 — 143 143 Restricted cash, cash equivalents and investments, noncurrent Collateral for workers' compensation claims 37 126 163 25 133 158 Total $ 994 $ 467 $ 1,461 $ 1,466 $ 456 $ 1,922 |
INVESTMENTS
INVESTMENTS | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | INVESTMENTS The following tables summarize our financial instruments by significant categories and fair value measurement on a recurring basis as of June 30, 2024 and December 31, 2023 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, 2024 Cash equivalents: Money market mutual funds Level 1 $ 128 $ — $ — $ 128 $ 38 $ — $ 90 U.S. treasuries Level 2 7 — — 7 — — 7 Total cash equivalents 135 — — 135 38 — 97 AFS Investments: Asset-backed securities Level 2 43 — — 43 — 43 — Corporate bonds Level 2 137 — — 137 — 103 34 Agency securities Level 2 34 — (1) 33 — 7 26 U.S. treasuries Level 2 249 — (3) 246 — 68 178 Certificate of deposit Level 2 1 — — 1 — — 1 Other debt securities Level 2 7 — — 7 — 7 — Total AFS Investments $ 471 $ — $ (4) $ 467 $ — $ 228 $ 239 (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, 2023 Cash equivalents: Money market mutual funds Level 1 $ 183 $ — $ — $ 183 $ 96 $ — $ 87 U.S. treasuries Level 2 7 — — 7 5 — 2 Total cash equivalents 190 — — 190 101 — 89 AFS Investments: Asset-backed securities Level 2 41 — (1) 40 — 40 — Corporate bonds Level 2 135 1 — 136 — 103 33 Agency securities Level 2 40 — (1) 39 — 10 29 U.S. treasuries Level 2 231 1 (1) 231 — 47 184 Certificate of deposit Level 2 2 — — 2 — — 2 Other debt securities Level 2 8 — — 8 — 8 — Total AFS Investments $ 457 $ 2 $ (3) $ 456 $ — $ 208 $ 248 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 condensed consolidated balance sheets as of June 30, 2024 and December 31, 2023. There were no transfers between levels as of June 30, 2024 and December 31, 2023. Sales and Maturities The fair value of debt investments by contractual maturity are shown below: (in millions) June 30, 2024 One year or less $ 91 Over one year through five years 351 Over five years through ten years 8 Over ten years 17 Total fair value $ 467 The gross proceeds from sales and maturities of AFS securities for the three and six months ended June 30, 2024 and June 30, 2023 are presented below. We had immaterial gross realized gains and losses from sales of investments for the first half of 2024 and 2023. Three Months Ended June 30, Six Months Ended June 30, (in millions) 2024 2023 2024 2023 Gross proceeds from sales $ 22 $ 52 $ 61 $ 84 Gross proceeds from maturities 37 45 64 89 Total $ 59 $ 97 $ 125 $ 173 Fair Value of Long-Term Debt The fair value of our 2029 Notes and 2031 Notes was obtained from a third-party pricing service and is based on observable market inputs. As such, the fair value of the senior notes is considered Level 2 in the hierarchy for fair value measurement. As of June 30, 2024, our 2029 Notes and 2031 Notes were carried at their cost, net of issuance costs, and had a fair value of $445 million and $406 million, respectively. As of December 31, 2023, our 2029 Notes and 2031 Notes were carried at their cost, net of issuance costs, and had a fair value of $443 million and $414 million, respectively. Our 2021 Revolver is a floating rate debt. At June 30, 2024 and December 31, 2023, the fair value of our 2021 Revolver 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. |
ACCRUED WORKERS' COMPENSATION C
ACCRUED WORKERS' COMPENSATION COSTS | 6 Months Ended |
Jun. 30, 2024 | |
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, 2024 and 2023: Three Months Ended Six Months Ended (in millions) 2024 2023 2024 2023 Total accrued costs, beginning of period $ 175 $ 187 $ 175 $ 189 Incurred Current year 14 18 30 34 Prior years (26) (17) (30) (23) Total incurred (12) 1 — 11 Paid Current year (1) (1) (2) (2) Prior years (8) (9) (19) (20) Total paid (9) (10) (21) (22) Total accrued costs, end of period $ 154 $ 178 $ 154 $ 178 The following summarizes workers' compensation liabilities on the condensed consolidated balance sheets: (in millions) June 30, 2024 December 31, 2023 Total accrued costs, end of period $ 154 $ 175 Collateral paid to carriers and offset against accrued costs (4) (5) Total accrued costs, net of carrier collateral offset $ 150 $ 170 Payable in less than 1 year $1 and $1 at June 30, 2024 and December 31, 2023, respectively) $ 43 $ 50 Payable in more than 1 year $3 and $4 at June 30, 2024 and December 31, 2023, respectively) 107 120 Total accrued costs, net of carrier collateral offset $ 150 $ 170 Incurred claims related to prior years represent changes in estimates for ultimate losses on workers' compensation claims. For the three and six months ended June 30, 2024, the favorable development is due to lower than expected reported claim frequency and severity for the more recent years. As of June 30, 2024 and December 31, 2023, we had $31 million and $32 million of collateral held by insurance carriers of which $4 million and $5 million, respectively, was offset against accrued workers' compensation costs as the agreements permit and are net settled of insurance obligations against collateral held. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2024 | |
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 | 6 Months Ended |
Jun. 30, 2024 | |
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 2024 and 2023 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, 2024: Time-based RSUs Total Number of Shares Weighted-Average Grant Date Fair Value Nonvested at December 31, 2023 1,229,202 $ 80.88 Granted 534,379 124.22 Vested (324,921) 82.11 Forfeited (30,505) 86.28 Nonvested at June 30, 2024 1,408,155 $ 96.08 Performance-based RSUs Total Number of Shares Weighted-Average Grant Date Fair Value Nonvested at December 31, 2023 223,011 $ 81.08 Granted 129,631 125.65 Vested (5,067) 92.53 Forfeited (2,598) 77.00 Nonvested at June 30, 2024 344,977 $ 96.08 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) 2024 2023 2024 2023 Cost of providing services $ 4 $ 4 $ 8 $ 7 Sales and marketing 3 2 6 4 General and administrative 9 10 21 15 Systems development and programming costs 2 1 3 2 Total stock based compensation expense $ 18 $ 17 $ 38 $ 28 Total stock based compensation capitalized $ 1 $ — $ 2 $ 1 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2024 | |
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, 2024 and 2023: Three Months Ended Six Months Ended 2024 2023 2024 2023 Shares issued and outstanding, beginning balance 50,573,176 59,522,954 50,664,471 60,555,661 Issuance of common stock from vested restricted stock units 169,870 167,852 329,988 302,926 Issuance of common stock from exercise of stock options — 41,876 5,708 81,667 Issuance of common stock for employee stock purchase plan 75,944 104,017 75,944 104,017 Repurchase of common stock (1,056,446) (108,018) (1,254,318) (1,265,889) Awards effectively repurchased for required employee withholding taxes (52,149) (53,721) (111,398) (103,422) Shares issued and outstanding, ending balance 49,710,395 59,674,960 49,710,395 59,674,960 Stock Repurchases As of June 30, 2024, there was $299 million remaining in the total authorization of $2,715 million of our ongoing stock repurchase program. Dividends In February 2024, our board of directors authorized a dividend of $0.25 per share for an aggregate amount of approximately $13 million, which was paid in April 2024. In June 2024, our board of directors authorized a dividend of $0.25 per share for an aggregate amount of approximately $12 million, which was paid in July 2024. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Our ETR was 25% for the second quarter of 2024 and 2023 and 26% and 27% for the first half of 2024 and 2023, respectively. The decrease in rates for the first half of 2024 compared to the same period in 2023 was primarily due to an increase in excludable income for state tax purposes. 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 2018 and subsequent years. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2024 | |
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) 2024 2023 2024 2023 Net income $ 60 $ 83 $ 152 $ 214 Weighted average shares of common stock outstanding 50 60 50 60 Basic EPS $ 1.21 $ 1.40 $ 3.01 $ 3.58 Net income $ 60 $ 83 $ 152 $ 214 Weighted average shares of common stock outstanding 50 60 50 60 Dilutive effect of stock options and restricted stock units 1 — 1 — Weighted average shares of common stock outstanding 51 60 51 60 Diluted EPS $ 1.20 $ 1.38 $ 2.98 $ 3.56 Common stock equivalents excluded from income per diluted share because of their anti-dilutive effect 1 — 1 1 |
DESCRIPTION OF BUSINESS AND S_2
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
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 and Basis of Consolidation | 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. The unaudited condensed consolidated financial statements include the accounts of the Company and an entity consolidated under the variable interest model. Intercompany balances and transactions have been eliminated. 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, 2024 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, 2023. Certain prior year amounts have been reclassified to conform to current period presentation. When entering into contractual arrangements with other entities, we assess whether we have a variable interest. If we determine that we have a variable interest, we then determine whether the arrangement is with a variable interest entity ("VIE"). If the arrangement is with a VIE, we assess whether we are the primary beneficiary of the VIE by identifying the most significant activities and determining who has the power over those activities and who has the obligation to absorb the majority of the losses or benefits of the VIE. We consolidate a VIE when we have the power to direct activities that most significantly affect the economic performance of the VIE and have the obligation to absorb the majority of their losses or benefits, making us the primary beneficiary. Periodically, we assess whether any changes in our interest or relationship with the entity affect our determination of whether the entity is a VIE and, if so, whether we are the primary beneficiary. In December 2023, we created a trust ("TriNet Trust") for the purpose of holding HRIS clients' payroll funds for the remittance to HRIS Users, tax authorities and other recipients. TriNet Trust's assets are restricted and can only be used for payments on behalf of HRIS clients, payments on behalf of the HRIS Users, repayments of any advances from TriNet, or payments to TriNet of interest income earned on the balances of TriNet Trust. In the event of any losses, creditors to the Trust have recourse to TriNet Trust's property and not that of TriNet overall. The risks associated with the Trust are similar to those that currently exist for the Company such as banking losses in excess of FDIC insurance levels, interest rate and market conditions. We determined that TriNet Trust meets the definition of a variable interest entity and as the primary beneficiary we have both the power to direct TriNet Trust’s activities that most significantly affect its performance and we have the right to receive benefits from TriNet Trust, in the form of interest income. As a result, TriNet Trust is consolidated into our financial statements. During the first quarter of 2024, TriNet Trust assumed ownership and responsibility of certain bank accounts that hold HRIS client funds and assumed related liabilities. The following table presents the assets and liabilities of TriNet Trust which are included in our consolidated balance sheet. These amounts on any particular date can vary due to timing of cash receipts and remittance to HRIS users and payroll tax agencies. June 30, (in millions) 2024 ASSETS Current assets: Cash and cash equivalents $ 1 Restricted cash, cash equivalents and investments 91 Total current assets 92 Total assets $ 92 LIABILITIES Current liabilities: Accounts payable and other current liabilities $ 1 Accrued wages 14 Payroll tax liabilities and other payroll withholdings 78 Total current liabilities 92 Total liabilities $ 92 |
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 includes 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 are determined during client on-boarding and annually through the 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 FASB ASC Topic 606 Revenue from Contracts with Customers. 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, 2024, the majority of our group health insurance costs were 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 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. |
Restricted Cash, Cash Equivalents and Investments | Restricted cash, cash equivalents and investments presented on our consolidated balance sheets include: • cash and cash equivalents in trust accounts functioning as security deposits for our insurance carriers, • payroll funds collected representing cash collected in advance from clients which we designate as restricted for the purpose of funding WSE and HRIS User payroll and payroll taxes and other payroll related liabilities, and • amounts held in trust for current and future premium and claim obligations with our insurance carriers, which amounts are held in trust according to the terms of the relevant insurance policies and by the local insurance regulations of the jurisdictions in which the policies are in force. |
Recent Accounting Pronouncements | Recently issued accounting guidance Income Taxes In December 2023, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”), which will require the Company to disclose specified additional information in its income tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. ASU 2023-09 will also require the Company to disaggregate its income taxes paid disclosure by federal, state and foreign taxes, with further disaggregation required for significant individual jurisdictions. The ASU is effective for TriNet on a prospective basis for annual periods beginning after December 15, 2024. We are currently evaluating the provisions of this ASU. Segment Reporting In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which will require the Company to disclose segment expenses that are significant and regularly provided to the Company’s chief operating decision maker (“CODM”). In addition, ASU 2023-07 will require the Company to disclose the title and position of its CODM and how the CODM uses segment profit or loss information in assessing segment performance and deciding how to allocate resources. The ASU is effective for TriNet for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. We are currently evaluating the provisions of this ASU. |
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. |
DESCRIPTION OF BUSINESS AND S_3
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Assets and Liabilities in our Consolidated Balance Sheet | The following table presents the assets and liabilities of TriNet Trust which are included in our consolidated balance sheet. These amounts on any particular date can vary due to timing of cash receipts and remittance to HRIS users and payroll tax agencies. June 30, (in millions) 2024 ASSETS Current assets: Cash and cash equivalents $ 1 Restricted cash, cash equivalents and investments 91 Total current assets 92 Total assets $ 92 LIABILITIES Current liabilities: Accounts payable and other current liabilities $ 1 Accrued wages 14 Payroll tax liabilities and other payroll withholdings 78 Total current liabilities 92 Total liabilities $ 92 |
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) 2024 2023 2024 2023 Balance at beginning of period $ — $ 67 $ 7 $ 75 (+) Accruals — — — — (-) Distributions to clients — (17) (7) (25) Balance at end of period $ — $ 50 $ — $ 50 |
CASH, CASH EQUIVALENTS AND IN_2
CASH, CASH EQUIVALENTS AND INVESTMENTS - UNRESTRICTED AND RESTRICTED (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash, Cash Equivalents and Investments | Our total cash, cash equivalents and investments are summarized below: June 30, 2024 December 31, 2023 (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 $ 177 $ — $ 177 $ 287 $ — $ 287 Investments — 72 72 — 65 65 Restricted cash, cash equivalents and investments: Payroll funds collected 605 — 605 1,067 — 1,067 Collateral for health benefits claims 34 113 147 31 113 144 Collateral for workers' compensation claims 48 — 48 54 2 56 Trust for our HRIS Users 91 — 91 — — — Other security deposits 2 — 2 2 — 2 Total restricted cash, cash equivalents and investments 780 113 893 1,154 115 1,269 Investments, noncurrent — 156 156 — 143 143 Restricted cash, cash equivalents and investments, noncurrent Collateral for workers' compensation claims 37 126 163 25 133 158 Total $ 994 $ 467 $ 1,461 $ 1,466 $ 456 $ 1,922 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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, 2024 and December 31, 2023 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, 2024 Cash equivalents: Money market mutual funds Level 1 $ 128 $ — $ — $ 128 $ 38 $ — $ 90 U.S. treasuries Level 2 7 — — 7 — — 7 Total cash equivalents 135 — — 135 38 — 97 AFS Investments: Asset-backed securities Level 2 43 — — 43 — 43 — Corporate bonds Level 2 137 — — 137 — 103 34 Agency securities Level 2 34 — (1) 33 — 7 26 U.S. treasuries Level 2 249 — (3) 246 — 68 178 Certificate of deposit Level 2 1 — — 1 — — 1 Other debt securities Level 2 7 — — 7 — 7 — Total AFS Investments $ 471 $ — $ (4) $ 467 $ — $ 228 $ 239 (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, 2023 Cash equivalents: Money market mutual funds Level 1 $ 183 $ — $ — $ 183 $ 96 $ — $ 87 U.S. treasuries Level 2 7 — — 7 5 — 2 Total cash equivalents 190 — — 190 101 — 89 AFS Investments: Asset-backed securities Level 2 41 — (1) 40 — 40 — Corporate bonds Level 2 135 1 — 136 — 103 33 Agency securities Level 2 40 — (1) 39 — 10 29 U.S. treasuries Level 2 231 1 (1) 231 — 47 184 Certificate of deposit Level 2 2 — — 2 — — 2 Other debt securities Level 2 8 — — 8 — 8 — Total AFS Investments $ 457 $ 2 $ (3) $ 456 $ — $ 208 $ 248 |
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, 2024 One year or less $ 91 Over one year through five years 351 Over five years through ten years 8 Over ten years 17 Total fair value $ 467 |
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, 2024 and June 30, 2023 are presented below. We had immaterial gross realized gains and losses from sales of investments for the first half of 2024 and 2023. Three Months Ended June 30, Six Months Ended June 30, (in millions) 2024 2023 2024 2023 Gross proceeds from sales $ 22 $ 52 $ 61 $ 84 Gross proceeds from maturities 37 45 64 89 Total $ 59 $ 97 $ 125 $ 173 |
ACCRUED WORKERS' COMPENSATION_2
ACCRUED WORKERS' COMPENSATION COSTS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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, 2024 and 2023: Three Months Ended Six Months Ended (in millions) 2024 2023 2024 2023 Total accrued costs, beginning of period $ 175 $ 187 $ 175 $ 189 Incurred Current year 14 18 30 34 Prior years (26) (17) (30) (23) Total incurred (12) 1 — 11 Paid Current year (1) (1) (2) (2) Prior years (8) (9) (19) (20) Total paid (9) (10) (21) (22) Total accrued costs, end of period $ 154 $ 178 $ 154 $ 178 The following summarizes workers' compensation liabilities on the condensed consolidated balance sheets: (in millions) June 30, 2024 December 31, 2023 Total accrued costs, end of period $ 154 $ 175 Collateral paid to carriers and offset against accrued costs (4) (5) Total accrued costs, net of carrier collateral offset $ 150 $ 170 Payable in less than 1 year $1 and $1 at June 30, 2024 and December 31, 2023, respectively) $ 43 $ 50 Payable in more than 1 year $3 and $4 at June 30, 2024 and December 31, 2023, respectively) 107 120 Total accrued costs, net of carrier collateral offset $ 150 $ 170 |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of RSU Activity under Equity-Based Plans | The following tables summarize RSU activity for the six months ended June 30, 2024: Time-based RSUs Total Number of Shares Weighted-Average Grant Date Fair Value Nonvested at December 31, 2023 1,229,202 $ 80.88 Granted 534,379 124.22 Vested (324,921) 82.11 Forfeited (30,505) 86.28 Nonvested at June 30, 2024 1,408,155 $ 96.08 Performance-based RSUs Total Number of Shares Weighted-Average Grant Date Fair Value Nonvested at December 31, 2023 223,011 $ 81.08 Granted 129,631 125.65 Vested (5,067) 92.53 Forfeited (2,598) 77.00 Nonvested at June 30, 2024 344,977 $ 96.08 |
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) 2024 2023 2024 2023 Cost of providing services $ 4 $ 4 $ 8 $ 7 Sales and marketing 3 2 6 4 General and administrative 9 10 21 15 Systems development and programming costs 2 1 3 2 Total stock based compensation expense $ 18 $ 17 $ 38 $ 28 Total stock based compensation capitalized $ 1 $ — $ 2 $ 1 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Schedule of Issued and Outstanding 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, 2024 and 2023: Three Months Ended Six Months Ended 2024 2023 2024 2023 Shares issued and outstanding, beginning balance 50,573,176 59,522,954 50,664,471 60,555,661 Issuance of common stock from vested restricted stock units 169,870 167,852 329,988 302,926 Issuance of common stock from exercise of stock options — 41,876 5,708 81,667 Issuance of common stock for employee stock purchase plan 75,944 104,017 75,944 104,017 Repurchase of common stock (1,056,446) (108,018) (1,254,318) (1,265,889) Awards effectively repurchased for required employee withholding taxes (52,149) (53,721) (111,398) (103,422) Shares issued and outstanding, ending balance 49,710,395 59,674,960 49,710,395 59,674,960 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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) 2024 2023 2024 2023 Net income $ 60 $ 83 $ 152 $ 214 Weighted average shares of common stock outstanding 50 60 50 60 Basic EPS $ 1.21 $ 1.40 $ 3.01 $ 3.58 Net income $ 60 $ 83 $ 152 $ 214 Weighted average shares of common stock outstanding 50 60 50 60 Dilutive effect of stock options and restricted stock units 1 — 1 — Weighted average shares of common stock outstanding 51 60 51 60 Diluted EPS $ 1.20 $ 1.38 $ 2.98 $ 3.56 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, 2024 USD ($) segment | Dec. 31, 2023 USD ($) | |
Product Information [Line Items] | ||
Number of reportable segments | segment | 1 | |
Prepayments offsetting accrued health insurance costs | $ 59 | $ 58 |
Health Care | ||
Product Information [Line Items] | ||
Prepayments offsetting accrued health insurance costs | $ 73 | $ 68 |
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 - Assets and Liabilities of the Trust (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 177 | $ 287 |
Restricted cash, cash equivalents and investments | 893 | 1,269 |
Total current assets | 2,566 | 2,578 |
Total assets | 3,703 | 3,693 |
Current liabilities: | ||
Accounts payable and other current liabilities | 85 | 87 |
Accrued wages | 558 | 515 |
Payroll tax liabilities and other payroll withholdings | 1,421 | 1,438 |
Total current liabilities | 2,463 | 2,463 |
Total liabilities | 3,603 | $ 3,615 |
Variable Interest Entity | ||
Current assets: | ||
Cash and cash equivalents | 1 | |
Restricted cash, cash equivalents and investments | 91 | |
Total current assets | 92 | |
Total assets | 92 | |
Current liabilities: | ||
Accounts payable and other current liabilities | 1 | |
Accrued wages | 14 | |
Payroll tax liabilities and other payroll withholdings | 78 | |
Total current liabilities | 92 | |
Total liabilities | $ 92 |
DESCRIPTION OF BUSINESS AND S_6
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, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Unsatisfied Performance Obligation [Roll Forward] | ||||
Balance at beginning of period | $ 0 | $ 67 | $ 7 | $ 75 |
(+) Accruals | 0 | 0 | 0 | 0 |
(-) Distributions to clients | 0 | (17) | (7) | (25) |
Balance at end of period | $ 0 | $ 50 | $ 0 | $ 50 |
CASH, CASH EQUIVALENTS AND IN_3
CASH, CASH EQUIVALENTS AND INVESTMENTS - UNRESTRICTED AND RESTRICTED (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Cash and cash equivalents | $ 177 | $ 287 |
Investments | 72 | 65 |
Total restricted cash, cash equivalents and investments | 893 | 1,269 |
Investments, noncurrent | 156 | 143 |
Restricted cash, cash equivalents and investments, noncurrent | 163 | 158 |
Total | 1,461 | 1,922 |
Payroll funds collected | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash, cash equivalents and investments | 605 | 1,067 |
Collateral for health benefits claims | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash, cash equivalents and investments | 147 | 144 |
Collateral for workers' compensation claims | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash, cash equivalents and investments | 48 | 56 |
Restricted cash, cash equivalents and investments, noncurrent | 163 | 158 |
Trust for our HRIS Users | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash, cash equivalents and investments | 91 | 0 |
Other security deposits | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash, cash equivalents and investments | 2 | 2 |
Cash and cash equivalents | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Cash and cash equivalents | 177 | 287 |
Investments | 0 | 0 |
Total restricted cash, cash equivalents and investments | 780 | 1,154 |
Investments, noncurrent | 0 | 0 |
Total | 994 | 1,466 |
Cash and cash equivalents | Payroll funds collected | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash, cash equivalents and investments | 605 | 1,067 |
Cash and cash equivalents | Collateral for health benefits claims | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash, cash equivalents and investments | 34 | 31 |
Cash and cash equivalents | Collateral for workers' compensation claims | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash, cash equivalents and investments | 48 | 54 |
Restricted cash, cash equivalents and investments, noncurrent | 37 | 25 |
Cash and cash equivalents | Trust for our HRIS Users | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash, cash equivalents and investments | 0 | |
Cash and cash equivalents | Other security deposits | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash, cash equivalents and investments | 2 | 2 |
Available-for-sale marketable securities | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Investments | 72 | 65 |
Total restricted cash, cash equivalents and investments | 113 | 115 |
Investments, noncurrent | 156 | 143 |
Total | 467 | 456 |
Available-for-sale marketable securities | Payroll funds collected | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash, cash equivalents and investments | 0 | 0 |
Available-for-sale marketable securities | Collateral for health benefits claims | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash, cash equivalents and investments | 113 | 113 |
Available-for-sale marketable securities | Collateral for workers' compensation claims | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash, cash equivalents and investments | 0 | 2 |
Restricted cash, cash equivalents and investments, noncurrent | 126 | 133 |
Available-for-sale marketable securities | Trust for our HRIS Users | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash, cash equivalents and investments | 0 | 0 |
Available-for-sale marketable securities | Other security deposits | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash, cash equivalents and investments | $ 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, 2024 | Dec. 31, 2023 |
Debt Securities | ||
Cash equivalents: | $ 135 | $ 190 |
Amortized Cost | 471 | 457 |
Gross Unrealized Gains | 0 | 2 |
Gross Unrealized Losses | (4) | (3) |
Fair Value | 467 | 456 |
Cash and Cash Equivalents | ||
Debt Securities | ||
Cash equivalents: | 38 | 101 |
Fair Value | 0 | 0 |
Investments | ||
Debt Securities | ||
Cash equivalents: | 0 | 0 |
Fair Value | 228 | 208 |
Restricted Cash, Cash Equivalents and Investments | ||
Debt Securities | ||
Cash equivalents: | 97 | 89 |
Fair Value | 239 | 248 |
Asset-backed securities | Level 2 | ||
Debt Securities | ||
Amortized Cost | 43 | 41 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | (1) |
Fair Value | 43 | 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 | 43 | 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 | 137 | 135 |
Gross Unrealized Gains | 0 | 1 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 137 | 136 |
Corporate bonds | Level 2 | Cash and Cash Equivalents | ||
Debt Securities | ||
Fair Value | 0 | 0 |
Corporate bonds | Level 2 | Investments | ||
Debt Securities | ||
Fair Value | 103 | 103 |
Corporate bonds | Level 2 | Restricted Cash, Cash Equivalents and Investments | ||
Debt Securities | ||
Fair Value | 34 | 33 |
Agency securities | Level 2 | ||
Debt Securities | ||
Amortized Cost | 34 | 40 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1) | (1) |
Fair Value | 33 | 39 |
Agency securities | Level 2 | Cash and Cash Equivalents | ||
Debt Securities | ||
Fair Value | 0 | 0 |
Agency securities | Level 2 | Investments | ||
Debt Securities | ||
Fair Value | 7 | 10 |
Agency securities | Level 2 | Restricted Cash, Cash Equivalents and Investments | ||
Debt Securities | ||
Fair Value | 26 | 29 |
U.S. treasuries | Level 2 | ||
Debt Securities | ||
Amortized Cost | 249 | 231 |
Gross Unrealized Gains | 0 | 1 |
Gross Unrealized Losses | (3) | (1) |
Fair Value | 246 | 231 |
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 | 68 | 47 |
U.S. treasuries | Level 2 | Restricted Cash, Cash Equivalents and Investments | ||
Debt Securities | ||
Fair Value | 178 | 184 |
Certificate of deposit | Level 2 | ||
Debt Securities | ||
Amortized Cost | 1 | 2 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 1 | 2 |
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 | 1 | 2 |
Other debt securities | Level 2 | ||
Debt Securities | ||
Amortized Cost | 7 | 8 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 7 | 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 | 7 | 8 |
Other debt securities | Level 2 | Restricted Cash, Cash Equivalents and Investments | ||
Debt Securities | ||
Fair Value | 0 | 0 |
Money market mutual funds | Level 1 | ||
Debt Securities | ||
Cash equivalents: | 128 | 183 |
Money market mutual funds | Level 1 | Cash and Cash Equivalents | ||
Debt Securities | ||
Cash equivalents: | 38 | 96 |
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: | 90 | 87 |
U.S. treasuries | Level 2 | ||
Debt Securities | ||
Cash equivalents: | 7 | 7 |
U.S. treasuries | Level 2 | Cash and Cash Equivalents | ||
Debt Securities | ||
Cash equivalents: | 0 | 5 |
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: | $ 7 | $ 2 |
INVESTMENTS - Schedule of Fair
INVESTMENTS - Schedule of Fair value of Debt Investments by Contractual Maturity (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
One year or less | $ 91 |
Over one year through five years | 351 |
Over five years through ten years | 8 |
Over ten years | 17 |
Total fair value | $ 467 |
INVESTMENTS - Schedule of Avail
INVESTMENTS - Schedule of Available-for-Sale Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | ||||
AFS securities, gross realized gain (loss) | $ 0 | $ 0 | ||
Gross proceeds from sales | $ 22 | $ 52 | 61 | 84 |
Gross proceeds from maturities | 37 | 45 | 64 | 89 |
Total | $ 59 | $ 97 | $ 125 | $ 173 |
INVESTMENTS - Additional Inform
INVESTMENTS - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
2029 Notes | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of notes payable | $ 445 | $ 443 |
2031 Notes | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of notes payable | $ 406 | $ 414 |
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, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||
Total accrued costs, beginning of period | $ 175 | $ 187 | $ 175 | $ 189 |
Incurred | ||||
Current year | 14 | 18 | 30 | 34 |
Prior years | (26) | (17) | (30) | (23) |
Total incurred | (12) | 1 | 0 | 11 |
Paid | ||||
Current year | (1) | (1) | (2) | (2) |
Prior years | (8) | (9) | (19) | (20) |
Total paid | (9) | (10) | (21) | (22) |
Total accrued costs, end of period | $ 154 | $ 178 | $ 154 | $ 178 |
ACCRUED WORKERS' COMPENSATION_4
ACCRUED WORKERS' COMPENSATION COSTS - Schedule of Workers' Compensation Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Insurance [Abstract] | ||||||
Total accrued costs, end of period | $ 154 | $ 175 | $ 175 | $ 178 | $ 187 | $ 189 |
Collateral paid to carriers and offset against accrued costs | (4) | (5) | ||||
Total accrued costs, net of carrier collateral offset | 150 | 170 | ||||
Payable in less than 1 year (net of collateral paid to carriers of $1 and $1 at June 30, 2024 and December 31, 2023, respectively) | 43 | 50 | ||||
Payable in more than 1 year (net of collateral paid to carriers of $3 and $4 at June 30, 2024 and December 31, 2023, respectively) | 107 | 120 | ||||
Total accrued costs, net of carrier collateral offset | 150 | 170 | ||||
Net of collateral paid to carriers, payable in less than one year | 1 | 1 | ||||
Net of collateral paid to carriers, payable in more than 1 year | $ 3 | $ 4 |
ACCRUED WORKERS' COMPENSATION_5
ACCRUED WORKERS' COMPENSATION COSTS - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Insurance [Abstract] | ||
Collateral held by insurance carriers | $ 31 | $ 32 |
Collateral paid to carriers and offset against loss reserves | $ 4 | $ 5 |
STOCK BASED COMPENSATION - Addi
STOCK BASED COMPENSATION - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2024 | |
Time-Based Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 4 years |
Time-Based Restricted Stock Units | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percent of share value | 0% |
Time-Based Restricted Stock Units | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percent of share value | 200% |
Performance-based RSUs and RSAs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance period for 2024 and 2023 awards | 1 year |
Performance-based RSUs and RSAs | Share-based Payment Arrangement, Tranche One | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 1 year |
Amount of shares that are expected to vesting percentage | 50% |
STOCK BASED COMPENSATION - Sche
STOCK BASED COMPENSATION - Schedule of RSU and RSA Activity under Equity-Based Plans (Details) | 6 Months Ended |
Jun. 30, 2024 $ / shares shares | |
Time-Based Restricted Stock Units | |
Number of Shares | |
Balance (in shares) | shares | 1,229,202 |
Granted (in shares) | shares | 534,379 |
Vested (in shares) | shares | (324,921) |
Forfeited (in shares) | shares | (30,505) |
Balance (in shares) | shares | 1,408,155 |
Weighted-Average Grant Date Fair Value | |
Balance (in dollars per share) | $ / shares | $ 80.88 |
Granted (in dollars per share) | $ / shares | 124.22 |
Vested (in dollars per share) | $ / shares | 82.11 |
Forfeited (in dollars per share) | $ / shares | 86.28 |
Balance (in dollars per share) | $ / shares | $ 96.08 |
Performance-Based Restricted Stock Units | |
Number of Shares | |
Balance (in shares) | shares | 223,011 |
Granted (in shares) | shares | 129,631 |
Vested (in shares) | shares | (5,067) |
Forfeited (in shares) | shares | (2,598) |
Balance (in shares) | shares | 344,977 |
Weighted-Average Grant Date Fair Value | |
Balance (in dollars per share) | $ / shares | $ 81.08 |
Granted (in dollars per share) | $ / shares | 125.65 |
Vested (in dollars per share) | $ / shares | 92.53 |
Forfeited (in dollars per share) | $ / shares | 77 |
Balance (in dollars per share) | $ / shares | $ 96.08 |
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, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock based compensation expense | $ 18 | $ 17 | $ 38 | $ 28 |
Total stock based compensation capitalized | 1 | 0 | 2 | 1 |
Cost of providing services | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock based compensation expense | 4 | 4 | 8 | 7 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock based compensation expense | 3 | 2 | 6 | 4 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock based compensation expense | 9 | 10 | 21 | 15 |
Systems development and programming costs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock based compensation expense | $ 2 | $ 1 | $ 3 | $ 2 |
STOCKHOLDERS' EQUITY - Schedule
STOCKHOLDERS' EQUITY - Schedule of Common Stock (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Shares issued and outstanding, beginning balance (in shares) | 50,573,176 | 59,522,954 | 50,664,471 | 60,555,661 |
Shares issued and outstanding, beginning balance (in shares) | 50,573,176 | 59,522,954 | 50,664,471 | 60,555,661 |
Repurchase of common stock (in shares) | (1,056,446) | (108,018) | (1,254,318) | (1,265,889) |
Awards effectively repurchased for required employee withholding taxes (in shares) | (52,149) | (53,721) | (111,398) | (103,422) |
Shares issued and outstanding, ending balance (in shares) | 49,710,395 | 59,674,960 | 49,710,395 | 59,674,960 |
Shares issued and outstanding, ending balance (in shares) | 49,710,395 | 59,674,960 | 49,710,395 | 59,674,960 |
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) | 169,870 | 167,852 | 329,988 | 302,926 |
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) | 0 | 41,876 | 5,708 | 81,667 |
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) | 75,944 | 104,017 | 75,944 | 104,017 |
STOCKHOLDERS' EQUITY - Addition
STOCKHOLDERS' EQUITY - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Jun. 30, 2024 | Feb. 29, 2024 |
Equity [Abstract] | ||
Stock repurchase program, remaining authorized repurchase amount | $ 299 | |
Stock repurchase program, authorized amount | $ 2,715 | |
Dividends authorized (in dollars per share) | $ 0.25 | $ 0.25 |
Dividends authorized | $ 12 | $ 13 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 25% | 25% | 26% | 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, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 60 | $ 83 | $ 152 | $ 214 |
Weighted average shares of common stock outstanding (in shares) | 50 | 60 | 50 | 60 |
Basic EPS (in dollars per share) | $ 1.21 | $ 1.40 | $ 3.01 | $ 3.58 |
Net income | $ 60 | $ 83 | $ 152 | $ 214 |
Dilutive effect of stock options and restricted stock units (in shares) | 1 | 0 | 1 | 0 |
Weighted average shares of common stock outstanding - diluted (in shares) | 51 | 60 | 51 | 60 |
Diluted EPS (in dollars per share) | $ 1.20 | $ 1.38 | $ 2.98 | $ 3.56 |
Common stock equivalents excluded from income per diluted share because of their anti-dilutive effect (in shares) | 1 | 0 | 1 | 1 |