TRINET GROUP, INC., 10-Q filed on 4/26/2024
Quarterly Report
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Cover - shares
 3 Months Ended
Mar. 31, 2024
Apr. 19, 2024
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 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 $0.000025 per share  
Trading Symbol TNET  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding (in shares)   50,563,849
Entity Central Index Key 0000937098  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q1  
Amendment Flag false  
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited) - USD ($)
shares in Millions, $ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Total revenues $ 1,264 $ 1,246
Costs and operating expenses:    
Insurance costs 907 852
Cost of providing services 79 78
Sales and marketing 72 69
General and administrative 48 43
Systems development and programming 18 17
Depreciation and amortization of intangible assets 18 18
Total costs and operating expenses 1,142 1,077
Operating income 122 169
Other income (expense):    
Interest expense, bank fees and other (16) (7)
Interest income 18 18
Income before provision for income taxes 124 180
Income taxes 33 49
Net income 91 131
Other comprehensive income (loss), net of income taxes (3) 3
Comprehensive income $ 88 $ 134
Net income per share:    
Basic (in dollars per share) $ 1.80 $ 2.18
Diluted (in dollars per share) $ 1.78 $ 2.17
Weighted average shares:    
Basic (in shares) 51 60
Diluted (in shares) 51 60
Professional service revenues    
Total revenues $ 214 $ 205
Insurance service revenues    
Total revenues $ 1,050 $ 1,041
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CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)
$ in Millions
Mar. 31, 2024
Dec. 31, 2023
Current assets:    
Cash and cash equivalents $ 298 $ 287
Investments 85 65
Restricted cash, cash equivalents and investments 1,059 1,269
Accounts receivable, net 11 18
Unbilled revenue, net 467 447
Prepaid expenses, net 79 67
Other payroll assets 791 381
Other current assets 50 44
Total current assets 2,840 2,578
Restricted cash, cash equivalents and investments, noncurrent 152 158
Investments, noncurrent 161 143
Property and equipment, net 15 17
Operating lease right-of-use asset 22 24
Goodwill 462 462
Software and other intangible assets, net 174 172
Other assets 142 139
Total assets 3,968 3,693
Current liabilities:    
Accounts payable and other current liabilities 122 87
Revolving credit agreement borrowings 109 109
Client deposits and other client liabilities 51 65
Accrued wages 537 515
Accrued health insurance costs, net 167 175
Accrued workers' compensation costs, net 51 50
Payroll tax liabilities and other payroll withholdings 1,611 1,438
Operating lease liabilities 14 14
Insurance premiums and other payables 7 10
Total current liabilities 2,669 2,463
Long-term debt, noncurrent 984 984
Accrued workers' compensation costs, noncurrent, net 120 120
Deferred taxes 13 13
Operating lease liabilities, noncurrent 27 30
Other non-current liabilities 12 5
Total liabilities 3,825 3,615
Commitments and contingencies (see Note 5)
Stockholders' equity:    
Preferred stock, ($0.000025 par value per share; 20,000,000 shares authorized; no shares issued or outstanding at March 31, 2024 and December 31, 2023) 0 0
Common stock and additional paid-in capital, ($0.000025 par value per share; 750,000,000 shares authorized; 50,573,176 and 50,664,471 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively) 996 976
Accumulated deficit (848) (896)
Accumulated other comprehensive loss (5) (2)
Total stockholders' equity 143 78
Total liabilities & stockholders' equity $ 3,968 $ 3,693
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CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares
Mar. 31, 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    
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) 50,573,176 50,664,471
Common stock, shares outstanding (in shares) 50,573,176 50,664,471
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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 $ (119) $ (5)
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Stock based compensation expense   11    
Net income 131   131  
Dividends Declared 0      
Repurchase of common stock     (91)  
Awards effectively repurchased for required employee withholding taxes     (4)  
Other comprehensive income (loss) 3     3
Ending balance at Mar. 31, 2023 825 910 (83) (2)
Beginning balance at Dec. 31, 2023 78 976 (896) (2)
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Stock based compensation expense   20    
Net income 91   91  
Dividends Declared (13)      
Repurchase of common stock     (23)  
Awards effectively repurchased for required employee withholding taxes     (7)  
Other comprehensive income (loss) (3)     (3)
Ending balance at Mar. 31, 2024 $ 143 $ 996 $ (848) $ (5)
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Operating activities    
Net income $ 91 $ 131
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization of intangible assets 18 18
Amortization of deferred costs 11 12
Amortization of ROU asset, lease modification, impairment, and abandonment 2 2
Stock based compensation 20 11
Provision for doubtful accounts 1 1
Changes in operating assets and liabilities:    
Accounts receivable, net 6 3
Unbilled revenue, net (20) 5
Prepaid expenses, net (12) (14)
Other assets (21) (10)
Other payroll assets (410) (180)
Accounts payable and other liabilities 20 30
Client deposits and other client liabilities (14) 25
Accrued wages 23 (21)
Accrued health insurance costs, net (7) (5)
Accrued workers' compensation costs, net 1 (1)
Payroll taxes payable and other payroll withholdings 173 (80)
Operating lease liabilities (4) (4)
Net cash used in operating activities (122) (77)
Investing activities    
Purchases of marketable securities (95) (82)
Proceeds from sale and maturity of marketable securities 66 76
Acquisitions of property and equipment and projects in process (18) (17)
Net cash used in investing activities (47) (23)
Financing activities    
Repurchase of common stock (23) (91)
Awards effectively repurchased for required employee withholding taxes (7) (4)
Proceeds from revolving credit agreement borrowings 0 495
Repayment of revolving credit agreement borrowings 0 (200)
Net cash provided by (used in) financing activities (30) 200
Net change in cash and cash equivalents, unrestricted and restricted (199) 100
Cash and cash equivalents, unrestricted and restricted:    
Beginning of period 1,466 1,537
End of period 1,267 1,637
Supplemental disclosures of cash flow information    
Interest paid 26 11
Income taxes paid, net 7 4
Supplemental schedule of noncash investing and financing activities    
Cash dividend declared, but not yet paid 13 0
Payable for purchase of property and equipment $ 3 $ 5
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DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES
 3 Months Ended
Mar. 31, 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 months ended March 31, 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 ("the Trust") for the purpose of holding HRIS clients' payroll funds for the remittance to HRIS Users, tax authorities and other recipients. The 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 the Trust. In the event of any
losses, creditors to the Trust have recourse to the 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 this Trust meets the definition of a variable interest entity and as the primary beneficiary we have both the power to direct the Trust’s activities that most significantly affect its performance and we have the right to receive benefits from the Trust, in the form of interest income. As a result, this Trust is consolidated into our financial statements. During the first quarter of 2024, the Trust assumed ownership and responsibility of certain bank accounts that hold HRIS client funds and assumed the related liabilities.
The following table presents the assets and liabilities of the 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.
March 31,
(in millions)2024
ASSETS
Current assets:
Cash and cash equivalents
$1 
Restricted cash, cash equivalents and investments
113 
Total current assets114 
Total assets$114 
LIABILITIES
Current liabilities:
Accounts payable and other current liabilities
$1 
Accrued wages
15 
Payroll tax liabilities and other payroll withholdings
98 
Total current liabilities114 
Total liabilities$114 
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 balance sheets. The change in balance for the liability for credits previously accrued is the following:
Three Months Ended March 31,
(in millions)20242023
Balance at beginning of period$7 $75 
(+) Accruals— — 
(-) Distributions to clients(7)(8)
Balance at end of period$— $67 
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 three months ended March 31, 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 March 31, 2024 and December 31, 2023, prepayments and miscellaneous receivables offsetting accrued health insurance costs were $65 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 March 31, 2024 and December 31, 2023, accrued health insurance costs offsetting prepaid expenses were $71 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.
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CASH, CASH EQUIVALENTS AND INVESTMENTS - UNRESTRICTED AND RESTRICTED
 3 Months Ended
Mar. 31, 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:
March 31, 2024December 31, 2023
(in millions)Cash and cash equivalentsAvailable-for-sale marketable securitiesTotalCash and cash equivalentsAvailable-for-sale marketable securitiesTotal
Cash and cash equivalents$298 $— $298 $287 $— $287 
Investments— 85 85 — 65 65 
Restricted cash, cash equivalents and investments:
Payroll funds collected743 — 743 1,067 — 1,067 
Collateral for health benefits claims32 114 146 31 113 144 
Collateral for workers' compensation claims55 — 55 54 2 56 
Trust for our HRIS Users113 — 113 — — — 
Other security deposits2 — 2 2 — 2 
Total restricted cash, cash equivalents and investments945 114 1,059 1,154 115 1,269 
Investments, noncurrent— 161 161 — 143 143 
Restricted cash, cash equivalents and investments, noncurrent
Collateral for workers' compensation claims24 128 152 25 133 158 
Total$1,267 $488 $1,755 $1,466 $456 $1,922 
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INVESTMENTS
 3 Months Ended
Mar. 31, 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 March 31, 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 LevelAmortized CostGross Unrealized GainsGross Unrealized LossesFair ValueCash and Cash EquivalentsInvestmentsRestricted Cash, Cash Equivalents and Investments
March 31, 2024
Cash equivalents:
Money market mutual fundsLevel 1$327 $— $— $327 $40 $— $287 
U.S. treasuriesLevel 24 — — 4 1 — 3 
Total cash equivalents331 — — 33141 — 290 
AFS Investments:
Asset-backed securitiesLevel 238 — — 38 — 38 — 
Corporate bondsLevel 2148 — — 148 — 115 33 
Agency securitiesLevel 237 — (1)36 — 8 28 
U.S. treasuriesLevel 2260 — (4)256 — 77 179 
Certificate of depositLevel 22 — — 2 — — 2 
Other debt securitiesLevel 28 — — 8 — 8 — 
Total AFS Investments$493 $— $(5)$488 $— $246 $242 
(in millions)Fair Value LevelAmortized CostGross Unrealized GainsGross Unrealized LossesFair ValueCash and Cash EquivalentsInvestmentsRestricted Cash, Cash Equivalents and Investments
December 31, 2023
Cash equivalents:
Money market mutual fundsLevel 1$183 $— $— $183 $96 $— $87 
U.S. treasuriesLevel 27 — — 75 — 2 
Total cash equivalents190 — — 190101 — 89 
AFS Investments:
Asset-backed securitiesLevel 241 — (1)40 — 40 — 
Corporate bondsLevel 2135 1 — 136 — 103 33 
Agency securitiesLevel 240 — (1)39 — 10 29 
U.S. treasuriesLevel 2231 1 (1)231 — 47 184 
Certificate of depositLevel 22 — — 2 — — 2 
Other debt securitiesLevel 28 — — 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 March 31, 2024 and December 31, 2023. There were no transfers between levels as of March 31, 2024 and December 31, 2023.
Sales and Maturities
The fair value of debt investments by contractual maturity are shown below:
(in millions)March 31, 2024
One year or less$113 
Over one year through five years347 
Over five years through ten years10 
Over ten years18 
Total fair value$488 
The gross proceeds from sales and maturities of AFS securities for the three months ended March 31, 2024 and March 31, 2023 are presented below. We had immaterial gross realized gains and losses from sales of investments for the first quarter of 2024 and immaterial gross realized gains for the first quarter of 2023.
Three Months Ended March 31,
(in millions)20242023
Gross proceeds from sales$39 $32 
Gross proceeds from maturities27 44 
Total$66 $76 
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 March 31, 2024, our 2029 Notes and 2031 Notes were carried at their cost, net of issuance costs, and had a fair value of $449 million and $411 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 March 31, 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.
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ACCRUED WORKERS' COMPENSATION COSTS
 3 Months Ended
Mar. 31, 2024
Insurance [Abstract]  
ACCRUED WORKERS' COMPENSATION COSTS ACCRUED WORKERS' COMPENSATION COSTS
The following table summarizes the accrued workers’ compensation cost activity for the three months ended March 31, 2024 and 2023:
Three Months Ended
March 31,
(in millions)20242023
Total accrued costs, beginning of period$175 $189 
Incurred
Current year16 16 
Prior years(4)(6)
Total incurred12 10 
Paid
Current year(1)(1)
Prior years(11)(11)
Total paid(12)(12)
Total accrued costs, end of period$175 $187 
The following summarizes workers' compensation liabilities on the condensed consolidated balance sheets:
(in millions)March 31, 2024December 31, 2023
Total accrued costs, end of period$175 $175 
Collateral paid to carriers and offset against accrued costs(4)(5)
Total accrued costs, net of carrier collateral offset$171 $170 
Payable in less than 1 year
(net of collateral paid to carriers of $1 and $1 at March 31, 2024 and December 31, 2023, respectively)
$51 $50 
Payable in more than 1 year
(net of collateral paid to carriers of $3 and $4 at March 31, 2024 and December 31, 2023, respectively)
120 120 
Total accrued costs, net of carrier collateral offset$171 $170 
Incurred claims related to prior years represent changes in estimates for ultimate losses on workers' compensation claims. For the three months ended March 31, 2024, the favorable development is due to lower than expected reported claim frequency and severity for the more recent years.
As of March 31, 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.
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COMMITMENTS AND CONTINGENCIES
 3 Months Ended
Mar. 31, 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.
v3.24.1.u1
STOCK BASED COMPENSATION
 3 Months Ended
Mar. 31, 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 three months ended March 31, 2024:
Time-based RSUs
Total Number
of Shares
Weighted-Average
Grant Date
Fair Value
Nonvested at December 31, 20231,229,202 $80.88 
Granted488,872 125.52 
Vested(155,051)76.36 
Forfeited(18,289)83.55 
Nonvested at March 31, 20241,544,734 $95.43 
Performance-based RSUs
Total Number of Shares
Weighted-Average
Grant Date
Fair Value
Nonvested at December 31, 2023223,011 $81.08 
Granted129,631 125.65 
Vested(5,067)92.53 
Forfeited(2,598)77.00 
Nonvested at March 31, 2024344,977 $97.69 
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 March 31,
(in millions)20242023
Cost of providing services$4 $3 
Sales and marketing3 2 
General and administrative12 5 
Systems development and programming costs1 1 
Total stock based compensation expense$20 $11 
Total stock based compensation capitalized$1 $1 
v3.24.1.u1
STOCKHOLDERS' EQUITY
 3 Months Ended
Mar. 31, 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 months ended March 31, 2024 and 2023:
Three Months Ended
March 31,
20242023
Shares issued and outstanding, beginning balance50,664,471 60,555,661 
Issuance of common stock from vested restricted stock units
160,118 135,074 
Issuance of common stock from exercise of stock options
5,708 39,791 
Repurchase of common stock
(197,872)(1,157,871)
Awards effectively repurchased for required employee withholding taxes
(59,249)(49,701)
Shares issued and outstanding, ending balance
50,573,176 59,522,954 
Stock Repurchases
As of March 31, 2024, there is $409 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 paid in April 2024.
v3.24.1.u1
INCOME TAXES
 3 Months Ended
Mar. 31, 2024
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
Our ETR was 27% for the first quarter of 2024 and 2023. The increase in tax benefits related to stock-based compensation from the first quarter of 2023 was offset by an increase in non-deductible compensation in the first quarter of 2024.
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.
v3.24.1.u1
EARNINGS PER SHARE
 3 Months Ended
Mar. 31, 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
March 31,
(in millions, except per share data)20242023
Net income$91 $131 
Weighted average shares of common stock outstanding51 60 
Basic EPS$1.80 $2.18 
Net income$91 $131 
Weighted average shares of common stock outstanding51 60 
Dilutive effect of stock options and restricted stock units— — 
Weighted average shares of common stock outstanding51 60 
Diluted EPS$1.78 $2.17 
Common stock equivalents excluded from income per diluted share because of their anti-dilutive effect
1 2 
v3.24.1.u1
Pay vs Performance Disclosure - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Pay vs Performance Disclosure    
Net income $ 91 $ 131
v3.24.1.u1
Insider Trading Arrangements
 3 Months Ended
Mar. 31, 2024
shares
Trading Arrangements, by Individual  
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
Burton M Goldfield [Member]  
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement
On February 23, 2024, Burton M. Goldfield, a member of the Board of Directors, adopted a new written trading plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act (the “Goldfield Plan”). The first possible trade date under the Goldfield Plan is May 28, 2024, and the end date of the Goldfield Plan is February 28, 2025 (subject to customary exceptions), for a duration of approximately one year. The Goldfield Plan calls for the sale of an amount of shares that Mr. Goldfield could receive upon the future vesting of certain outstanding equity awards, net of any shares withheld by us to satisfy applicable taxes. The exact number of shares to be sold pursuant to the Goldfield Plan depends on the number of shares to be withheld by us on equity awards that will vest during the duration of the Goldfield Plan, among other factors. For purposes of this disclosure, without
subtracting any shares to be withheld upon future vesting events, the aggregate number of shares currently expected to be sold pursuant to the Goldfield Plan is 74,379.
Name Burton M. Goldfield
Title member of the Board of Directors
Rule 10b5-1 Arrangement Adopted true
Adoption Date February 23, 2024
Arrangement Duration 371 days
Aggregate Available 74,379
v3.24.1.u1
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Policies)
 3 Months Ended
Mar. 31, 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 months ended March 31, 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 ("the Trust") for the purpose of holding HRIS clients' payroll funds for the remittance to HRIS Users, tax authorities and other recipients. The 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 the Trust. In the event of any
losses, creditors to the Trust have recourse to the 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 this Trust meets the definition of a variable interest entity and as the primary beneficiary we have both the power to direct the Trust’s activities that most significantly affect its performance and we have the right to receive benefits from the Trust, in the form of interest income. As a result, this Trust is consolidated into our financial statements. During the first quarter of 2024, the Trust assumed ownership and responsibility of certain bank accounts that hold HRIS client funds and assumed the related liabilities.
The following table presents the assets and liabilities of the 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.
March 31,
(in millions)2024
ASSETS
Current assets:
Cash and cash equivalents
$1 
Restricted cash, cash equivalents and investments
113 
Total current assets114 
Total assets$114 
LIABILITIES
Current liabilities:
Accounts payable and other current liabilities
$1 
Accrued wages
15 
Payroll tax liabilities and other payroll withholdings
98 
Total current liabilities114 
Total liabilities$114 
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 three months ended March 31, 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.
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.
v3.24.1.u1
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Tables)
 3 Months Ended
Mar. 31, 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 the 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.
March 31,
(in millions)2024
ASSETS
Current assets:
Cash and cash equivalents
$1 
Restricted cash, cash equivalents and investments
113 
Total current assets114 
Total assets$114 
LIABILITIES
Current liabilities:
Accounts payable and other current liabilities
$1 
Accrued wages
15 
Payroll tax liabilities and other payroll withholdings
98 
Total current liabilities114 
Total liabilities$114 
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 March 31,
(in millions)20242023
Balance at beginning of period$7 $75 
(+) Accruals— — 
(-) Distributions to clients(7)(8)
Balance at end of period$— $67 
v3.24.1.u1
CASH, CASH EQUIVALENTS AND INVESTMENTS - UNRESTRICTED AND RESTRICTED (Tables)
 3 Months Ended
Mar. 31, 2024
Cash and Cash Equivalents [Abstract]  
Schedule of Cash, Cash Equivalents and Investments
Our total cash, cash equivalents and investments are summarized below:
March 31, 2024December 31, 2023
(in millions)Cash and cash equivalentsAvailable-for-sale marketable securitiesTotalCash and cash equivalentsAvailable-for-sale marketable securitiesTotal
Cash and cash equivalents$298 $— $298 $287 $— $287 
Investments— 85 85 — 65 65 
Restricted cash, cash equivalents and investments:
Payroll funds collected743 — 743 1,067 — 1,067 
Collateral for health benefits claims32 114 146 31 113 144 
Collateral for workers' compensation claims55 — 55 54 2 56 
Trust for our HRIS Users113 — 113 — — — 
Other security deposits2 — 2 2 — 2 
Total restricted cash, cash equivalents and investments945 114 1,059 1,154 115 1,269 
Investments, noncurrent— 161 161 — 143 143 
Restricted cash, cash equivalents and investments, noncurrent
Collateral for workers' compensation claims24 128 152 25 133 158 
Total$1,267 $488 $1,755 $1,466 $456 $1,922 
v3.24.1.u1
INVESTMENTS (Tables)
 3 Months Ended
Mar. 31, 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 March 31, 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 LevelAmortized CostGross Unrealized GainsGross Unrealized LossesFair ValueCash and Cash EquivalentsInvestmentsRestricted Cash, Cash Equivalents and Investments
March 31, 2024
Cash equivalents:
Money market mutual fundsLevel 1$327 $— $— $327 $40 $— $287 
U.S. treasuriesLevel 24 — — 4 1 — 3 
Total cash equivalents331 — — 33141 — 290 
AFS Investments:
Asset-backed securitiesLevel 238 — — 38 — 38 — 
Corporate bondsLevel 2148 — — 148 — 115 33 
Agency securitiesLevel 237 — (1)36 — 8 28 
U.S. treasuriesLevel 2260 — (4)256 — 77 179 
Certificate of depositLevel 22 — — 2 — — 2 
Other debt securitiesLevel 28 — — 8 — 8 — 
Total AFS Investments$493 $— $(5)$488 $— $246 $242 
(in millions)Fair Value LevelAmortized CostGross Unrealized GainsGross Unrealized LossesFair ValueCash and Cash EquivalentsInvestmentsRestricted Cash, Cash Equivalents and Investments
December 31, 2023
Cash equivalents:
Money market mutual fundsLevel 1$183 $— $— $183 $96 $— $87 
U.S. treasuriesLevel 27 — — 75 — 2 
Total cash equivalents190 — — 190101 — 89 
AFS Investments:
Asset-backed securitiesLevel 241 — (1)40 — 40 — 
Corporate bondsLevel 2135 1 — 136 — 103 33 
Agency securitiesLevel 240 — (1)39 — 10 29 
U.S. treasuriesLevel 2231 1 (1)231 — 47 184 
Certificate of depositLevel 22 — — 2 — — 2 
Other debt securitiesLevel 28 — — 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)March 31, 2024
One year or less$113 
Over one year through five years347 
Over five years through ten years10 
Over ten years18 
Total fair value$488 
Schedule of Available-for-Sale Securities
The gross proceeds from sales and maturities of AFS securities for the three months ended March 31, 2024 and March 31, 2023 are presented below. We had immaterial gross realized gains and losses from sales of investments for the first quarter of 2024 and immaterial gross realized gains for the first quarter of 2023.
Three Months Ended March 31,
(in millions)20242023
Gross proceeds from sales$39 $32 
Gross proceeds from maturities27 44 
Total$66 $76 
v3.24.1.u1
ACCRUED WORKERS' COMPENSATION COSTS (Tables)
 3 Months Ended
Mar. 31, 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 months ended March 31, 2024 and 2023:
Three Months Ended
March 31,
(in millions)20242023
Total accrued costs, beginning of period$175 $189 
Incurred
Current year16 16 
Prior years(4)(6)
Total incurred12 10 
Paid
Current year(1)(1)
Prior years(11)(11)
Total paid(12)(12)
Total accrued costs, end of period$175 $187 
The following summarizes workers' compensation liabilities on the condensed consolidated balance sheets:
(in millions)March 31, 2024December 31, 2023
Total accrued costs, end of period$175 $175 
Collateral paid to carriers and offset against accrued costs(4)(5)
Total accrued costs, net of carrier collateral offset$171 $170 
Payable in less than 1 year
(net of collateral paid to carriers of $1 and $1 at March 31, 2024 and December 31, 2023, respectively)
$51 $50 
Payable in more than 1 year
(net of collateral paid to carriers of $3 and $4 at March 31, 2024 and December 31, 2023, respectively)
120 120 
Total accrued costs, net of carrier collateral offset$171 $170 
v3.24.1.u1
STOCK BASED COMPENSATION (Tables)
 3 Months Ended
Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Schedule of RSU Activity under Equity-Based Plans
The following tables summarize RSU activity for the three months ended March 31, 2024:
Time-based RSUs
Total Number
of Shares
Weighted-Average
Grant Date
Fair Value
Nonvested at December 31, 20231,229,202 $80.88 
Granted488,872 125.52 
Vested(155,051)76.36 
Forfeited(18,289)83.55 
Nonvested at March 31, 20241,544,734 $95.43 
Performance-based RSUs
Total Number of Shares
Weighted-Average
Grant Date
Fair Value
Nonvested at December 31, 2023223,011 $81.08 
Granted129,631 125.65 
Vested(5,067)92.53 
Forfeited(2,598)77.00 
Nonvested at March 31, 2024344,977 $97.69 
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 March 31,
(in millions)20242023
Cost of providing services$4 $3 
Sales and marketing3 2 
General and administrative12 5 
Systems development and programming costs1 1 
Total stock based compensation expense$20 $11 
Total stock based compensation capitalized$1 $1 
v3.24.1.u1
STOCKHOLDERS' EQUITY (Tables)
 3 Months Ended
Mar. 31, 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 months ended March 31, 2024 and 2023:
Three Months Ended
March 31,
20242023
Shares issued and outstanding, beginning balance50,664,471 60,555,661 
Issuance of common stock from vested restricted stock units
160,118 135,074 
Issuance of common stock from exercise of stock options
5,708 39,791 
Repurchase of common stock
(197,872)(1,157,871)
Awards effectively repurchased for required employee withholding taxes
(59,249)(49,701)
Shares issued and outstanding, ending balance
50,573,176 59,522,954 
v3.24.1.u1
EARNINGS PER SHARE (Tables)
 3 Months Ended
Mar. 31, 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
March 31,
(in millions, except per share data)20242023
Net income$91 $131 
Weighted average shares of common stock outstanding51 60 
Basic EPS$1.80 $2.18 
Net income$91 $131 
Weighted average shares of common stock outstanding51 60 
Dilutive effect of stock options and restricted stock units— — 
Weighted average shares of common stock outstanding51 60 
Diluted EPS$1.78 $2.17 
Common stock equivalents excluded from income per diluted share because of their anti-dilutive effect
1 2 
v3.24.1.u1
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details)
$ in Millions
 3 Months Ended
Mar. 31, 2024
USD ($)
segment
Dec. 31, 2023
USD ($)
Product Information [Line Items]    
Number of reportable segments | segment 1  
Prepayments offsetting accrued health insurance costs $ 65 $ 58
Health Care    
Product Information [Line Items]    
Prepayments offsetting accrued health insurance costs $ 71 $ 68
Non-US | Revenue | Foreign Sales    
Product Information [Line Items]    
Percent of concentration risk (less than) 1.00%  
v3.24.1.u1
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES - Assets and Liabilities of the Trust (Details) - USD ($)
$ in Millions
Mar. 31, 2024
Dec. 31, 2023
Current assets:    
Cash and cash equivalents $ 298 $ 287
Restricted cash, cash equivalents and investments 1,059 1,269
Total current assets 2,840 2,578
Total assets 3,968 3,693
Current liabilities:    
Accounts payable and other current liabilities 122 87
Accrued wages 537 515
Payroll tax liabilities and other payroll withholdings 1,611 1,438
Total current liabilities 2,669 2,463
Total liabilities 3,825 $ 3,615
Variable Interest Entity    
Current assets:    
Cash and cash equivalents 1  
Restricted cash, cash equivalents and investments 113  
Total current assets 114  
Total assets 114  
Current liabilities:    
Accounts payable and other current liabilities 1  
Accrued wages 15  
Payroll tax liabilities and other payroll withholdings 98  
Total current liabilities 114  
Total liabilities $ 114  
v3.24.1.u1
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
Mar. 31, 2024
Mar. 31, 2023
Unsatisfied Performance Obligation [Roll Forward]    
Balance at beginning of period $ 7 $ 75
(+) Accruals 0 0
(-) Distributions to clients (7) (8)
Balance at end of period $ 0 $ 67
v3.24.1.u1
CASH, CASH EQUIVALENTS AND INVESTMENTS - UNRESTRICTED AND RESTRICTED (Details) - USD ($)
$ in Millions
Mar. 31, 2024
Dec. 31, 2023
Restricted Cash and Cash Equivalents Items [Line Items]    
Cash and cash equivalents $ 298 $ 287
Investments 85 65
Total restricted cash, cash equivalents and investments 1,059 1,269
Investments, noncurrent 161 143
Restricted cash, cash equivalents and investments, noncurrent 152 158
Total 1,755 1,922
Payroll funds collected    
Restricted Cash and Cash Equivalents Items [Line Items]    
Total restricted cash, cash equivalents and investments 743 1,067
Collateral for health benefits claims    
Restricted Cash and Cash Equivalents Items [Line Items]    
Total restricted cash, cash equivalents and investments 146 144
Collateral for workers' compensation claims    
Restricted Cash and Cash Equivalents Items [Line Items]    
Total restricted cash, cash equivalents and investments 55 56
Restricted cash, cash equivalents and investments, noncurrent 152 158
Trust for our HRIS Users    
Restricted Cash and Cash Equivalents Items [Line Items]    
Total restricted cash, cash equivalents and investments 113 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 298 287
Investments 0 0
Total restricted cash, cash equivalents and investments 945 1,154
Investments, noncurrent 0 0
Total 1,267 1,466
Cash and cash equivalents | Payroll funds collected    
Restricted Cash and Cash Equivalents Items [Line Items]    
Total restricted cash, cash equivalents and investments 743 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 32 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 55 54
Restricted cash, cash equivalents and investments, noncurrent 24 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 113 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 85 65
Total restricted cash, cash equivalents and investments 114 115
Investments, noncurrent 161 143
Total 488 456
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 114 113
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 128 133
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
v3.24.1.u1
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
Mar. 31, 2024
Dec. 31, 2023
Debt Securities    
Cash equivalents: $ 331 $ 190
Amortized Cost 493 457
Gross Unrealized Gains 0 2
Gross Unrealized Losses (5) (3)
Fair Value 488 456
Cash and Cash Equivalents    
Debt Securities    
Cash equivalents: 41 101
Fair Value 0 0
Investments    
Debt Securities    
Cash equivalents: 0 0
Fair Value 246 208
Restricted Cash, Cash Equivalents and Investments    
Debt Securities    
Cash equivalents: 290 89
Fair Value 242 248
Asset-backed securities | Level 2    
Debt Securities    
Amortized Cost 38 41
Gross Unrealized Gains 0 0
Gross Unrealized Losses 0 (1)
Fair Value 38 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 38 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 148 135
Gross Unrealized Gains 0 1
Gross Unrealized Losses 0 0
Fair Value 148 136
Corporate bonds | Level 2 | Cash and Cash Equivalents    
Debt Securities    
Fair Value 0 0
Corporate bonds | Level 2 | Investments    
Debt Securities    
Fair Value 115 103
Corporate bonds | Level 2 | Restricted Cash, Cash Equivalents and Investments    
Debt Securities    
Fair Value 33 33
Agency securities | Level 2    
Debt Securities    
Amortized Cost 37 40
Gross Unrealized Gains 0 0
Gross Unrealized Losses (1) (1)
Fair Value 36 39
Agency securities | Level 2 | Cash and Cash Equivalents    
Debt Securities    
Fair Value 0 0
Agency securities | Level 2 | Investments    
Debt Securities    
Fair Value 8 10
Agency securities | Level 2 | Restricted Cash, Cash Equivalents and Investments    
Debt Securities    
Fair Value 28 29
U.S. treasuries | Level 2    
Debt Securities    
Amortized Cost 260 231
Gross Unrealized Gains 0 1
Gross Unrealized Losses (4) (1)
Fair Value 256 231
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 77 47
U.S. treasuries | Level 2 | Restricted Cash, Cash Equivalents and Investments    
Debt Securities    
Fair Value 179 184
Certificate of deposit | Level 2    
Debt Securities    
Amortized Cost 2 2
Gross Unrealized Gains 0 0
Gross Unrealized Losses 0 0
Fair Value 2 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 2 2
Other debt securities | Level 2    
Debt Securities    
Amortized Cost 8 8
Gross Unrealized Gains 0 0
Gross Unrealized Losses 0 0
Fair Value 8 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 8 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: 327 183
Money market mutual funds | Level 1 | Cash and Cash Equivalents    
Debt Securities    
Cash equivalents: 40 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: 287 87
U.S. treasuries | Level 2    
Debt Securities    
Cash equivalents: 4 7
U.S. treasuries | Level 2 | Cash and Cash Equivalents    
Debt Securities    
Cash equivalents: 1 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: $ 3 $ 2
v3.24.1.u1
INVESTMENTS - Schedule of Fair value of Debt Investments by Contractual Maturity (Details)
$ in Millions
Mar. 31, 2024
USD ($)
Investments, Debt and Equity Securities [Abstract]  
One year or less $ 113
Over one year through five years 347
Over five years through ten years 10
Over ten years 18
Total fair value $ 488
v3.24.1.u1
INVESTMENTS - Additional Information (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
Debt Securities, Available-for-sale [Line Items]      
AFS securities, gross realized gain (loss) $ 0 $ 0  
2029 Notes      
Debt Securities, Available-for-sale [Line Items]      
Fair value of notes payable 449   $ 443
2031 Notes      
Debt Securities, Available-for-sale [Line Items]      
Fair value of notes payable $ 411   $ 414
v3.24.1.u1
INVESTMENTS - Schedule of Available-for-Sale Securities (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract]    
Gross proceeds from sales $ 39 $ 32
Gross proceeds from maturities 27 44
Total $ 66 $ 76
v3.24.1.u1
ACCRUED WORKERS' COMPENSATION COSTS - Schedule of Workers' Compensation Loss Reserve Activity (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward]    
Total accrued costs, beginning of period $ 175 $ 189
Incurred    
Current year 16 16
Prior years (4) (6)
Total incurred 12 10
Paid    
Current year (1) (1)
Prior years (11) (11)
Total paid (12) (12)
Total accrued costs, end of period $ 175 $ 187
v3.24.1.u1
ACCRUED WORKERS' COMPENSATION COSTS - Schedule of Workers' Compensation Liabilities (Details) - USD ($)
$ in Millions
Mar. 31, 2024
Dec. 31, 2023
Mar. 31, 2023
Dec. 31, 2022
Insurance [Abstract]        
Total accrued costs, end of period $ 175 $ 175 $ 187 $ 189
Collateral paid to carriers and offset against accrued costs (4) (5)    
Total accrued costs, net of carrier collateral offset 171 170    
Payable in less than 1 year
(net of collateral paid to carriers of $1 and $1 at March 31, 2024 and December 31, 2023, respectively) 51 50    
Payable in more than 1 year 
(net of collateral paid to carriers of $3 and $4 at March 31, 2024 and December 31, 2023, respectively) 120 120    
Total accrued costs, net of carrier collateral offset 171 170    
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    
v3.24.1.u1
ACCRUED WORKERS' COMPENSATION COSTS - Additional Information (Details) - USD ($)
$ in Millions
Mar. 31, 2024
Dec. 31, 2023
Insurance [Abstract]    
Collateral held by insurance carriers $ 31 $ 32
Collateral paid to carriers and offset against loss reserves $ 4 $ 5
v3.24.1.u1
STOCK BASED COMPENSATION - Additional Information (Details)
 3 Months Ended
Mar. 31, 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 0.00%
Time-Based Restricted Stock Units | Maximum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Percent of share value 200.00%
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 50.00%
v3.24.1.u1
STOCK BASED COMPENSATION - Schedule of RSU and RSA Activity under Equity-Based Plans (Details)
 3 Months Ended
Mar. 31, 2024
$ / shares
shares
Time-Based Restricted Stock Units  
Number of Shares  
Balance (in shares) | shares 1,229,202
Granted (in shares) | shares 488,872
Vested (in shares) | shares (155,051)
Forfeited (in shares) | shares (18,289)
Balance (in shares) | shares 1,544,734
Weighted-Average Grant Date Fair Value  
Balance (in dollars per share) | $ / shares $ 80.88
Granted (in dollars per share) | $ / shares 125.52
Vested (in dollars per share) | $ / shares 76.36
Forfeited (in dollars per share) | $ / shares 83.55
Balance (in dollars per share) | $ / shares $ 95.43
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 77.00
Balance (in dollars per share) | $ / shares $ 97.69
v3.24.1.u1
STOCK BASED COMPENSATION - Schedule of Stock-Based Compensation Expense (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total stock based compensation expense $ 20 $ 11
Total stock based compensation capitalized 1 1
Cost of providing services    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total stock based compensation expense 4 3
Sales and marketing    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total stock based compensation expense 3 2
General and administrative    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total stock based compensation expense 12 5
Systems development and programming costs    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total stock based compensation expense $ 1 $ 1
v3.24.1.u1
STOCKHOLDERS' EQUITY - Schedule of Common Stock (Details) - shares
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Increase (Decrease) in Stockholders' Equity [Roll Forward]    
Shares issued and outstanding, beginning balance (in shares) 50,664,471 60,555,661
Shares issued and outstanding, beginning balance (in shares) 50,664,471 60,555,661
Repurchase of common stock (in shares) (197,872) (1,157,871)
Awards effectively repurchased for required employee withholding taxes (in shares) (59,249) (49,701)
Shares issued and outstanding, ending balance (in shares) 50,573,176 59,522,954
Shares issued and outstanding, ending balance (in shares) 50,573,176 59,522,954
Restricted Stock    
Increase (Decrease) in Stockholders' Equity [Roll Forward]    
Issuance of common stock from vested restricted stock units (in shares) 160,118 135,074
Stock Options    
Increase (Decrease) in Stockholders' Equity [Roll Forward]    
Issuance of common stock from exercise of stock options (in shares) 5,708 39,791
v3.24.1.u1
STOCKHOLDERS' EQUITY - Additional Information (Details) - USD ($)
$ / shares in Units, $ in Millions
Mar. 31, 2024
Feb. 29, 2024
Equity [Abstract]    
Stock repurchase program, remaining authorized repurchase amount $ 409  
Stock repurchase program, authorized amount $ 2,715  
Dividends authorized (in dollars per share)   $ 0.25
Dividends authorized   $ 13
v3.24.1.u1
INCOME TAXES (Details)
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Income Tax Disclosure [Abstract]    
Effective income tax rate 27.00% 27.00%
v3.24.1.u1
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
Mar. 31, 2024
Mar. 31, 2023
Earnings Per Share [Abstract]    
Net income $ 91 $ 131
Weighted average shares of common stock outstanding (in shares) 51 60
Basic EPS (in dollars per share) $ 1.80 $ 2.18
Net income $ 91 $ 131
Dilutive effect of stock options and restricted stock units (in shares) 0 0
Weighted average shares of common stock outstanding - diluted (in shares) 51 60
Diluted EPS (in dollars per share) $ 1.78 $ 2.17
Common stock equivalents excluded from income per diluted share because of their anti-dilutive effect (in shares) 1 2