Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 18, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
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 $0.000025 per share | |
Trading Symbol | TNET | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 65,749,724 | |
Entity Central Index Key | 0000937098 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Total revenues | $ 1,148 | $ 975 | $ 3,308 | $ 2,971 |
Costs and operating expenses: | ||||
Insurance costs | 851 | 759 | 2,400 | 2,137 |
Cost of providing services | 61 | 68 | 191 | 192 |
Sales and marketing | 56 | 45 | 147 | 136 |
General and administrative | 52 | 38 | 128 | 106 |
Systems development and programming | 12 | 9 | 36 | 27 |
Depreciation and amortization of intangible assets | 11 | 11 | 42 | 35 |
Total costs and operating expenses | 1,043 | 930 | 2,944 | 2,633 |
Operating income | 105 | 45 | 364 | 338 |
Other income (expense): | ||||
Interest expense, bank fees and other | (5) | (8) | (15) | (16) |
Interest income | 3 | 2 | 6 | 9 |
Income before provision for income taxes | 103 | 39 | 355 | 331 |
Income taxes | 26 | 6 | 86 | 81 |
Net income | 77 | 33 | 269 | 250 |
Other comprehensive (loss) income, net of income taxes | (2) | 0 | (3) | 4 |
Comprehensive income | $ 75 | $ 33 | $ 266 | $ 254 |
Net income per share: | ||||
Basic (in dollars per share) | $ 1.17 | $ 0.49 | $ 4.08 | $ 3.69 |
Diluted (in dollars per share) | $ 1.16 | $ 0.48 | $ 4.03 | $ 3.66 |
Weighted average shares: | ||||
Basic (in shares) | 66 | 67 | 66 | 68 |
Diluted (in shares) | 67 | 68 | 67 | 69 |
Professional service revenues | ||||
Total revenues | $ 156 | $ 126 | $ 465 | $ 403 |
Insurance service revenues | ||||
Total revenues | $ 992 | $ 849 | $ 2,843 | $ 2,568 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 525 | $ 301 |
Investments | 155 | 57 |
Restricted cash, cash equivalents and investments | 1,040 | 1,388 |
Accounts receivable, net | 8 | 18 |
Unbilled revenue, net | 305 | 246 |
Prepaid expenses, net | 73 | 63 |
Other current assets | 95 | 87 |
Total current assets | 2,201 | 2,160 |
Restricted cash, cash equivalents and investments, noncurrent | 176 | 210 |
Investments, noncurrent | 167 | 138 |
Property, equipment and software, net | 78 | 79 |
Operating lease right-of-use asset | 44 | 51 |
Goodwill | 294 | 294 |
Other intangible assets, net | 7 | 18 |
Other assets | 102 | 93 |
Total assets | 3,069 | 3,043 |
Current liabilities: | ||
Accounts payable and other current liabilities | 70 | 50 |
Long-term debt | 0 | 22 |
Client deposits and other client liabilities | 120 | 134 |
Accrued wages | 555 | 309 |
Accrued health insurance costs, net | 162 | 172 |
Accrued workers' compensation costs, net | 54 | 59 |
Payroll tax liabilities and other payroll withholdings | 567 | 1,095 |
Operating lease liabilities | 12 | 11 |
Insurance premiums and other payables | 16 | 18 |
Total current liabilities | 1,556 | 1,870 |
Long-term debt, noncurrent | 495 | 348 |
Accrued workers' compensation costs, noncurrent, net | 137 | 138 |
Deferred taxes | 21 | 22 |
Operating lease liabilities, noncurrent | 43 | 49 |
Other non-current liabilities | 8 | 9 |
Total liabilities | 2,260 | 2,436 |
Commitments and contingencies (see Note 7) | ||
Stockholders' equity: | ||
Preferred stock | 0 | 0 |
Common stock and additional paid-in capital | 790 | 747 |
Retained earnings (Accumulated deficit) | 18 | (144) |
Accumulated other comprehensive income | 1 | 4 |
Total stockholders' equity | 809 | 607 |
Total liabilities & stockholders' equity | $ 3,069 | $ 3,043 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
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) | 65,743,170 | 66,456,663 |
Common stock, shares outstanding (in shares) | 65,743,170 | 66,456,663 |
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, 2019 | $ 475 | $ 694 | $ (219) | $ 0 |
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 | 5 | |||
Stock based compensation expense | 31 | |||
Net income | 250 | 250 | ||
Repurchase of common stock | (135) | |||
Awards effectively repurchased for required employee withholding taxes | (11) | |||
Other comprehensive (loss) income | 4 | 5 | ||
Ending balance at Sep. 30, 2020 | 620 | 730 | (115) | 5 |
Beginning balance at Jun. 30, 2020 | 616 | 719 | (108) | 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 | 0 | |||
Stock based compensation expense | 11 | |||
Net income | 33 | 33 | ||
Repurchase of common stock | (35) | |||
Awards effectively repurchased for required employee withholding taxes | (5) | |||
Other comprehensive (loss) income | 0 | 0 | ||
Ending balance at Sep. 30, 2020 | 620 | 730 | (115) | 5 |
Beginning balance at Dec. 31, 2020 | 607 | 747 | (144) | 4 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of common stock from exercise of stock options | 1 | |||
Issuance of common stock for employee stock purchase plan | 5 | |||
Stock based compensation expense | 37 | |||
Net income | 269 | 269 | ||
Repurchase of common stock | (94) | (94) | ||
Awards effectively repurchased for required employee withholding taxes | (13) | |||
Other comprehensive (loss) income | (3) | |||
Ending balance at Sep. 30, 2021 | 809 | 790 | 18 | 1 |
Beginning balance at Jun. 30, 2021 | 744 | 776 | (35) | 3 |
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 | 0 | |||
Stock based compensation expense | 13 | |||
Net income | 77 | 77 | ||
Repurchase of common stock | (20) | |||
Awards effectively repurchased for required employee withholding taxes | (4) | |||
Other comprehensive (loss) income | (2) | |||
Ending balance at Sep. 30, 2021 | $ 809 | $ 790 | $ 18 | $ 1 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Operating activities | ||
Net income | $ 269 | $ 250 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 63 | 49 |
Amortization of ROU | 8 | 12 |
Lease modification and impairment | 2 | 0 |
Accretion of discount rate on lease liabilities | 2 | 2 |
Amortization of premium of investments | 2 | 0 |
Stock based compensation | 37 | 31 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 10 | 5 |
Unbilled revenue, net | (59) | (90) |
Prepaid expenses, net | (10) | (1) |
Accounts payable and other current liabilities | 19 | 10 |
Client deposits and other client liabilities | (14) | 163 |
Accrued wages | 246 | 63 |
Accrued health insurance costs, net | (10) | (7) |
Accrued workers' compensation costs, net | (6) | (2) |
Payroll taxes payable and other payroll withholdings | (528) | (467) |
Operating lease liabilities | (10) | (15) |
Other assets | (34) | (46) |
Other liabilities | (3) | 3 |
Net cash used in operating activities | (16) | (40) |
Investing activities | ||
Purchases of marketable securities | (348) | (278) |
Proceeds from sale and maturity of marketable securities | 232 | 166 |
Acquisitions of property and equipment | (29) | (27) |
Other | 0 | (12) |
Net cash used in investing activities | (145) | (151) |
Financing activities | ||
Repurchase of common stock | (94) | (135) |
Proceeds from issuance of common stock | 6 | 5 |
Awards effectively repurchased for required employee withholding taxes | (13) | (11) |
Proceeds from revolving credit agreement borrowings | 0 | 234 |
Payment of long-term financing fees | (2) | 0 |
Payment of debt issuance costs | (7) | 0 |
Proceeds from issuance of 2029 Notes | 500 | 0 |
Repayment of debt | (370) | (16) |
Net cash provided by financing activities | 20 | 77 |
Net decrease in cash and cash equivalents, unrestricted and restricted | (141) | (114) |
Cash and cash equivalents, unrestricted and restricted: | ||
Beginning of period | 1,643 | 1,456 |
End of period | 1,502 | 1,342 |
Supplemental disclosures of cash flow information | ||
Interest paid | 11 | 11 |
Income taxes paid, net | 83 | 83 |
Supplemental schedule of noncash investing and financing activities | ||
Payable for purchase of property and equipment | $ 3 | $ 1 |
Description of Business and Sig
Description of Business and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES | DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES Description of Business TriNet Group, Inc. (TriNet, or the Company, we, our and us), a professional employer organization, provides comprehensive human resources solutions for small and medium-size businesses under a co-employment model. These HR solutions include multi-state payroll processing and tax administration, employee benefits programs, including health insurance and retirement plans, workers' compensation insurance and claims management, employment and benefit law compliance, and other HR-related services. Through the co-employment relationship, we are the employer of record for certain employment-related administrative and regulatory purposes for the worksite employees (WSEs), including: • compensation through wages and salaries, • certain employer payroll-related tax payments, • employee payroll-related tax withholdings and payments, • employee benefit programs, including health and life insurance, and others, and • workers' compensation coverage. Our clients are responsible for the day-to-day job responsibilities of the WSEs. We operate in one reportable segment. All of our service revenues are generated from external clients. Less than 1% of our revenue is generated outside of the U.S. Basis of Presentation These unaudited condensed consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial reporting and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X of the Rules and Regulations of the Securities and Exchange Commission. Certain information and note disclosures included in our annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the condensed consolidated financial statements reflect all adjustments, that are normal and recurring in nature, necessary for fair financial statement presentation. The results of operations for the three and nine months ended September 30, 2021 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, 2020 (2020 Form 10-K). Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect certain reported amounts and related disclosures. These estimates are based on historical experience and on various other assumptions that we believe to be reasonable from the facts available to us. Some of the assumptions are highly uncertain at the time of estimation. To the extent actual experience differs from the assumptions used, our consolidated financial statements could be materially affected. Revenue Recognition Performance Obligations In April 2020, we created our Recovery Credit program to assist in the economic recovery of our existing SMB clients and enhance our ability to retain these clients. Under this one-time program eligible clients will receive reductions against fees for future services, accounted for as a discount, over the following 12 months. This option to renew future services at a discount represents a material right and is accounted for as a performance obligation (Recovery Credit). This performance obligation will be satisfied when the clients have successfully renewed the services contracts and the future services are transferred. The consideration we receive that is allocated to this performance obligation is deferred as an unsatisfied performance obligation and is included in client deposits and other client liabilities on the balance sheet. The amount of consideration we defer each period is dependent on the timing of when eligible clients will receive the Recovery Credit, which is subject to a limit on the total amount of $145 million. The change in the balance of the Recovery Credit unsatisfied performance obligation was as follows: September 30, 2021 (in millions) Three Months Ended Nine Months Ended Balance at beginning of period $ 63 $ 92 (+) Accruals — 17 (-) Distributions to clients (24) (70) Balance at end of period $ 39 $ 39 Variable Consideration and Pricing Allocation Our contracts with clients generally do not include any variable consideration. However, 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. Credits based on the performance of our insurance costs are recorded as a reduction to insurance services revenues and included in client deposits and other client liabilities on the balance sheet. In the nine months ended September 30, 2021, we accrued $25 million under our 2021 Credit Program, payable within 12 months to eligible clients as of March 31, 2021, related to the expected performance of our health insurance costs for the year. Accrued Health Insurance Costs We sponsor and administer a number of employee benefit plans, including group health, dental, and vision as an employer plan sponsor under section 3(5) of the ERISA. In the nine months ended September 30, 2021, a majority of our group health insurance costs related to risk-based plans. Our remaining group health insurance costs were for guaranteed-cost policies. Accrued health insurance costs are established to provide for the estimated unpaid costs of reimbursing the carriers for paying claims within the deductible layer in accordance with risk-based health insurance policies. These accrued costs include estimates for reported losses, plus estimates for claims incurred but not paid. We assess accrued health insurance costs regularly based upon external actuarial studies that include other relevant factors such as current and historical claims payment patterns, plan enrollment and medical trend rates. In certain carrier contracts we are required to prepay the expected claims activity for subsequent periods. These prepaid balances by agreement permit net settlement of obligations and offset the accrued health insurance costs. As of September 30, 2021 and December 31, 2020, prepayments and miscellaneous receivables offsetting accrued health insurance costs were $54 million and $49 million, respectively. When the prepaid amount is in excess of our recorded liability the net asset position is included in prepaid expenses. As of September 30, 2021 and December 31, 2020, accrued health insurance costs offsetting prepaid expenses were $65 million and $58 million, respectively. |
Cash, Cash Equivalents and Inve
Cash, Cash Equivalents and Investments - Unrestricted and Restricted | 9 Months Ended |
Sep. 30, 2021 | |
Cash and Cash Equivalents [Abstract] | |
CASH, CASH EQUIVALENTS AND INVESTMENTS - UNRESTRICTED AND RESTRICTED | CASH, CASH EQUIVALENTS AND INVESTMENTS - UNRESTRICTED AND RESTRICTED Under the terms of the agreements with certain of our workers' compensation and health benefit insurance carriers, we are required to maintain collateral in trust accounts for the benefit of specified insurance carriers and to reimburse the carriers’ claim payments within our deductible layer. We invest a portion of the collateral amounts in marketable securities. We report the current and noncurrent portions of these trust accounts as restricted cash, cash equivalents and investments on the consolidated balance sheets. We require our clients to prefund their payroll and related taxes and other withholding liabilities before payroll is processed or due for payment. This prefund is included in restricted cash, cash equivalents and investments as payroll funds collected, which is designated to pay pending payrolls, payroll tax liabilities and other payroll withholdings. We also invest available corporate funds, primarily in fixed income securities which meet the requirements of our corporate investment policy and are classified as available for sale (AFS). Our total cash, cash equivalents and investments are summarized below: September 30, 2021 December 31, 2020 (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 $ 525 $ — $ 525 $ 301 $ — $ 301 Investments — 155 155 — 57 57 Restricted cash, cash equivalents and investments: Payroll funds collected 863 — 863 1,228 — 1,228 Collateral for health benefits claims 24 94 118 16 82 98 Collateral for workers' compensation claims 57 — 57 60 — 60 Other security deposits 2 — 2 2 — 2 Total restricted cash, cash equivalents and investments 946 94 1,040 1,306 82 1,388 Investments, noncurrent — 167 167 — 138 138 Restricted cash, cash equivalents and investments, noncurrent Collateral for workers' compensation claims 31 145 176 36 174 210 Total $ 1,502 $ 561 $ 2,063 $ 1,643 $ 451 $ 2,094 |
Investments
Investments | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | INVESTMENTS The amortized cost, gross unrealized gains, gross unrealized losses, and fair values of our AFS investments as of September 30, 2021 and December 31, 2020 are presented below: September 30, 2021 December 31, 2020 (in millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Asset-backed securities $ 48 $ — $ — $ 48 $ 24 $ — $ — $ 24 Corporate bonds 171 1 — 172 126 2 — 128 U.S. government agencies and government- 18 — — 18 27 1 — 28 U.S. treasuries 299 2 — 301 261 4 — 265 Certificate of deposit 12 — — 12 — — — — Other debt securities 10 — — 10 6 — — 6 Total $ 558 $ 3 $ — $ 561 $ 444 $ 7 $ — $ 451 Gross unrealized losses were immaterial at September 30, 2021 and December 31, 2020. Unrealized losses on fixed income securities are principally caused by changes in interest rates and the financial condition of the issuer. In analyzing an issuer's financial condition, we consider whether the securities are issued by the federal government or its agencies, whether downgrades by credit rating agencies have occurred, and industry analysts' reports. As we have the ability to hold these investments until maturity, or for the foreseeable future, no decline was deemed to be other-than-temporary. Actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties. The fair value of debt investments by contractual maturity are shown below: (in millions) September 30, 2021 One year or less $ 189 Over one year through five years 335 Over five years through ten years 7 Over ten years 30 Total fair value $ 561 The gross proceeds from sales and maturities of AFS securities for the three and nine months ended September 30, 2021 and September 30, 2020 are presented below. We had immaterial gross realized gains and losses from sales of investments for the three and nine months ended September 30, 2021 and 2020. Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2021 2020 2021 2020 Gross proceeds from sales $ 51 $ 18 $ 131 $ 70 Gross proceeds from maturities 26 29 101 96 Total $ 77 $ 47 $ 232 $ 166 |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS Fair Value of Financial Instruments We use an independent pricing source to determine the fair value of our securities. The independent pricing source utilizes various pricing models for each asset class, including the market approach. The inputs and assumptions for the pricing models are market observable inputs including trades of comparable securities, dealer quotes, credit spreads, yield curves and other market-related data. We have not adjusted the prices obtained from the independent pricing service and we believe the prices received from the independent pricing service are representative of the prices that would be received to sell the assets at the measurement date (exit price). The carrying value of the Company's cash equivalents and restricted cash equivalents approximate their fair values due to their short-term maturities. We did not have any Level 3 financial instruments recognized in our balance sheet as of September 30, 2021 and December 31, 2020. There were no transfers between levels as of September 30, 2021 and December 31, 2020. Fair Value Measurements on a Recurring Basis The following tables summarize our financial instruments by significant categories and fair value measurement on a recurring basis as of September 30, 2021 and December 31, 2020. (in millions) Level 1 Level 2 Total September 30, 2021 Cash equivalents: Money market mutual funds $ 2 $ — $ 2 U.S. treasuries — 3 3 Total cash equivalents 2 3 5 Investments: Asset-backed securities — 48 48 Corporate bonds — 140 140 U.S. government agencies and government-sponsored agencies — 2 2 U.S. treasuries — 122 122 Other debt securities — 10 10 Total investments — 322 322 Restricted cash equivalents: Money market mutual funds 95 — 95 U.S. treasuries — 1 1 Total restricted cash equivalents 95 1 96 Restricted investments: Corporate bonds — 32 32 U.S. government agencies and government-sponsored agencies — 16 16 U.S. treasuries — 179 179 Certificate of deposit — 12 12 Total restricted investments — 239 239 Total cash equivalents and investments and restricted cash equivalents and investments $ 97 $ 565 $ 662 (in millions) Level 1 Level 2 Total December 31, 2020 Cash equivalents Money market mutual funds $ 2 $ — $ 2 U.S. treasuries — 11 11 Total cash equivalents 2 11 13 Investments Asset-backed securities — 24 24 Corporate bonds — 93 93 U.S. government agencies and government-sponsored agencies — 5 5 U.S. treasuries — 67 67 Other debt securities — 6 6 Total investments — 195 195 Restricted cash equivalents: Money market mutual funds 99 — 99 Total restricted cash equivalents 99 — 99 Restricted investments: Corporate bonds — 35 35 U.S. government agencies and government-sponsored agencies — 23 23 U.S. treasuries — 198 198 Total restricted investments — 256 256 Total investments and restricted cash equivalents and investments $ 101 $ 462 $ 563 Fair Value of Financial Instruments Disclosure Long-Term Debt As of December 31, 2020, our long-term debt was floating rate debt and the fair value approximated its carrying value (exclusive of issuance costs). The fair value of our floating rate debt was estimated based on a discounted cash flow, which incorporated credit spreads and market interest rates to estimate the fair value and was considered Level 3 in the hierarchy for fair value measurement. The fair value of our 2029 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 September 30, 2021, our 2029 Notes were carried at their cost, net of issuance costs, and had a fair value of $504 million. Derivative Instruments As of December 31, 2020, the fair value of the interest rate collar derivative, included in accounts payable and other current liabilities, was $1 million and was classified as Level 2 in the fair value hierarchy. In conjunction with the repayment and termination of our 2018 Term Loan, the interest rate collar derivative was terminated and settled and a realized loss of $1 million was recognized in net income for the nine months ended September 30, 2021. |
Accrued Workers' Compensation C
Accrued Workers' Compensation Costs | 9 Months Ended |
Sep. 30, 2021 | |
Insurance [Abstract] | |
ACCRUED WORKERS' COMPENSATION COSTS | ACCRUED WORKERS' COMPENSATION COSTS The following table summarizes the accrued workers’ compensation cost activity for the three and nine months ended September 30, 2021 and 2020: Three Months Ended Nine Months Ended (in millions) 2021 2020 2021 2020 Total accrued costs, beginning of period $ 198 $ 211 $ 205 $ 214 Incurred Current year 16 15 49 48 Prior years (3) (3) (18) (12) Total incurred 13 12 31 36 Paid Current year (3) (2) (6) (5) Prior years (10) (11) (32) (35) Total paid (13) (13) (38) (40) Total accrued costs, end of period $ 198 $ 210 $ 198 $ 210 The following summarizes workers' compensation liabilities on the condensed consolidated balance sheets: (in millions) September 30, 2021 December 31, 2020 Total accrued costs, end of period $ 198 $ 205 Collateral paid to carriers and offset against accrued costs (7) (8) Total accrued costs, net of carrier collateral offset $ 191 $ 197 Payable in less than 1 year $2 and $3 at September 30, 2021 and December 31, 2020, respectively) $ 54 $ 59 Payable in more than 1 year $5 and $5 at September 30, 2021 and December 31, 2020, respectively) 137 138 Total accrued costs, net of carrier collateral offset $ 191 $ 197 Incurred losses related to prior years represents changes in estimates for ultimate losses on workers' compensation claims. For the three and nine months ended September 30, 2021, the favorable development is due to lower than expected reported claim frequency and severity for the more recent years. |
Long-Term Debt and Revolving Cr
Long-Term Debt and Revolving Credit Agreements | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT AND REVOLVING CREDIT AGREEMENTS | LONG-TERM DEBT AND REVOLVING CREDIT AGREEMENTS As of September 30, 2021 and December 31, 2020, our long-term debt consisted of the following: (in millions) September 30, 2021 December 31, 2020 2018 Term Loan A $ — $ 370 2029 Notes 500 — Principal amount 500 370 Deferred issuance costs (5) — Less: current portion — (22) Long-term debt, noncurrent $ 495 $ 348 Annual contractual interest rate 3.50 % 1.77 % Effective interest rate 3.67 % 1.87 % In June 2018 we entered into a $425 million term loan A (our 2018 Term Loan) under our 2018 credit agreement (our 2018 Credit Agreement). The 2018 Credit Agreement included a $250 million revolving credit facility (our 2018 Revolver). The 2018 Credit Agreement was terminated in February 2021. In February 2021, we issued $500 million aggregate principal of 3.50% senior unsecured notes maturing in March 2029 (our 2029 Notes). The 2029 Notes are a senior unsecured obligation of TriNet Group, Inc. and rank equally with all of its existing and future senior unsecured indebtedness. Interest payments on the 2029 Notes are due semi-annually in arrears on March 1 and September 1, beginning on September 1, 2021. The net proceeds were used to repay and terminate our 2018 Term Loan and for general corporate purposes. We may voluntarily redeem the 2029 Notes, in whole or in part, 1) at any time prior to March 1, 2024 at (a) 100% of their principal amount, plus a “make whole” premium or (b) with the net cash proceeds received from an equity offering at a redemption price equal to 103.50% of the principal amount, provided the aggregate principal amount of all such redemptions does not exceed 40% of the original aggregate principal amount of the 2029 Notes; 2) at any time on or after March 1, 2024 at a prepayment price equal to 101.75% of the principal amount; 3) at any time on or after March 1, 2025 at a prepayment price equal to 100.875%of the principal amount; and 4) at any time on or after March 1, 2026 at a prepayment price equal to 100% of the principal amount; in each case, plus accrued and unpaid interest, if any, to but excluding, the date of redemption. In February 2021, concurrently with the closing of the 2029 Notes offering, we entered into a new $500 million revolving facility (our 2021 Revolver) under a new credit agreement (our 2021 Credit Agreement) and the 2018 Credit Agreement was terminated. Letters of credit issued pursuant to the revolving facility reduce the amount available for borrowing under the 2021 Revolver. As of September 30, 2021, we had remaining capacity of $491 million under our 2021 Revolver. The annual interest rate for borrowings under our 2021 Revolver is calculated based on an applicable London Interbank Offered Rate (LIBOR) tenor of our choosing, plus a margin of 1.25% to 2.00%, or, at our option, the alternative base rate (ABR), plus a margin of 0.25% to 1.00%. The applicable LIBOR or ABR margin is based on our Total Leverage Ratio, as defined in the 2021 Credit Agreement. The ABR is the highest of (a) the applicable Federal Reserve Bank of New York rate, as defined in our 2021 Credit Agreement plus 0.50% (b) the prime rate, and (c) one month LIBOR adjusted daily plus 1.00%. In the event TriNet Group, Inc. receives a Corporate Issuer Credit Rating that is one level below investment grade rating or higher from at least two Nationally Recognized Statistical Rating Organizations, then rating based pricing applies and, for so long as rating based pricing applies, irrespective of the Total Leverage Ratio, the LIBOR margin will be 1.125% and the ABR margin will be 0.125%. The indenture governing our 2029 Notes includes restrictive covenants limiting our ability to: (i) create liens on certain assets to secure debt; (ii) grant a subsidiary guarantee of certain debt without also providing a guarantee of the 2029 Notes; and (iii) consolidate or merge with or into, or sell or otherwise dispose of all or substantially all of our assets to, another person, subject, in each case, to certain customary exceptions. The 2021 Credit Agreement includes negative covenants that limit our ability to incur indebtedness and liens, sell assets and make restricted payments, including dividends and investments, subject to certain exceptions. In addition, the 2021 Credit Agreement also contains other customary affirmative and negative covenants and customary events of default. The 2021 Credit Agreement also contains a financial covenant that requires the Company to maintain certain maximum total net leverage ratios. We were in compliance with all financial covenants under the 2021 Credit Agreement at September 30, 2021. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Contingencies On September 29, 2020, a class action was filed in the United States District Court for the Middle District of Florida against the directors of certain TriNet subsidiaries and other TriNet employees on behalf of participants in two retirement plans available to TriNet’s eligible worksite employees, the TriNet 401(k) Plan and the TriNet Select 401(k) Plan. The complaint is similar to claims recently brought against a number of employers including PEOs and generally alleges that the defendants violated certain fiduciary obligations to Plan participants under the Employee Retirement Income Security Act of 1974 with respect to overseeing plan investment and recordkeeping fees. These claims are in the early stages, and we are unable to reasonably estimate any possible loss, or range of loss, with respect to this matter. We believe the claims are without merit. 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 | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK BASED COMPENSATION | STOCK BASED COMPENSATION Restricted Stock Units (RSUs) and Restricted Stock Awards (RSAs) Time-based RSUs and RSAs generally vest over a four-year term. Performance-based RSUs and RSAs are subject to vesting requirements and 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 2021 and 2020 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 and RSAs are generally forfeited if the participant terminates service prior to vesting. The following tables summarize RSU and RSA activity for the nine months ended September 30, 2021: Time-based RSUs and RSAs Total Number of RSUs Total Number of RSAs Total Number of Shares Weighted-Average Grant Date Fair Value Nonvested at December 31, 2020 1,230,071 30,026 1,260,097 $ 54.04 Granted 528,524 — 528,524 82.67 Vested (471,212) (18,540) (489,752) 53.03 Forfeited (145,569) — (145,569) 60.50 Nonvested at September 30, 2021 1,141,814 11,486 1,153,300 $ 66.78 Performance-based RSUs and RSAs Total Number of RSUs Total Number of RSAs Total Number of Shares Weighted-Average Grant Date Fair Value Nonvested at December 31, 2020 167,127 16,052 183,179 $ 52.89 Granted 246,349 — 246,349 67.70 Vested (3,010) (16,052) (19,062) 47.61 Forfeited (9,459) — (9,459) 52.86 Nonvested at September 30, 2021 401,007 — 401,007 $ 62.24 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 September 30, Nine Months Ended September 30, (in millions) 2021 2020 2021 2020 Cost of providing services $ 3 $ 2 $ 9 $ 7 Sales and marketing 1 2 5 5 General and administrative 8 6 21 17 Systems development and programming costs 1 1 2 2 Total stock based compensation expense $ 13 $ 11 $ 37 $ 31 Total stock based compensation capitalized $ — $ — $ 1 $ 1 |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2021 | |
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 nine months ended September 30, 2021 and 2020: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Shares issued and outstanding, beginning balance 65,864,116 67,292,864 66,456,663 69,065,491 Issuance of common stock from vested restricted stock units 127,704 158,041 474,222 500,291 Issuance of common stock from exercise of stock options 29,570 25,075 59,305 65,684 Issuance of common stock for employee stock purchase plan — — 74,070 130,532 Repurchase of common stock (230,456) (521,137) (1,155,707) (2,688,538) Awards effectively repurchased for required employee withholding taxes (47,764) (56,859) (165,383) (175,476) Shares issued and outstanding, ending balance 65,743,170 66,897,984 65,743,170 66,897,984 Stock Repurchases During the nine months ended September 30, 2021, we repurchased 1,155,707 shares of common stock for approximately $94 million. We retire shares in the period they are acquired and account for the payment as a reduction to stockholders' equity. As of September 30, 2021, approximately $264 million remained available for further repurchases of our common stock under all authorizations from our board of directors under this program. This repurchase authorization has no expiration. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Our effective tax rate (ETR) was 25% and 14% for the three months ended September 30, 2021 and 2020, respectively, and 24% for the nine months ended September 30, 2021 and 2020. The increase when comparing the quarter rates for 2021 with the same period in 2020 was primarily due to a decrease in excludable income for state tax purposes and a decrease in tax benefits related to stock-based compensation. During the nine months ended September 30, 2021, there was a decrease of $1 million in our unrecognized tax benefits. The total amount of gross interest and penalties accrued was immaterial. It is reasonably possible the amount of the unrecognized benefit could increase or decrease within the next 12 months for which an estimate of the impact on net income cannot be made. We are subject to tax in U.S. federal and various state and local jurisdictions, as well as Canada. We are open to federal and significant state income tax examinations for tax years 2016 and subsequent years. |
Earnings Per Share (EPS)
Earnings Per Share (EPS) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE (EPS) | EARNINGS PER SHARE (EPS) The following table presents the computation of our basic and diluted EPS attributable to our common stock: Three Months Ended Nine Months Ended (in millions, except per share data) 2021 2020 2021 2020 Net income $ 77 $ 33 $ 269 $ 250 Weighted average shares of common stock outstanding 66 67 66 68 Basic EPS $ 1.17 $ 0.49 $ 4.08 $ 3.69 Net income $ 77 $ 33 $ 269 $ 250 Weighted average shares of common stock outstanding 66 67 66 68 Dilutive effect of stock options and restricted stock units 1 1 1 1 Weighted average shares of common stock outstanding 67 68 67 69 Diluted EPS $ 1.16 $ 0.48 $ 4.03 $ 3.66 Common stock equivalents excluded from income per diluted share because of their anti-dilutive effect — — 1 1 |
Description of Business and S_2
Description of Business and Significant Accounting Policies - (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Segment Information | We operate in one reportable segment. All of our service revenues are generated from external clients. Less than 1% of our revenue is generated outside of the U.S. |
Basis of Presentation | These unaudited condensed consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial reporting and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X of the Rules and Regulations of the Securities and Exchange Commission. Certain information and note disclosures included in our annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the condensed consolidated financial statements reflect all adjustments, that are normal and recurring in nature, necessary for fair financial statement presentation. The results of operations for the three and nine months ended September 30, 2021 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, 2020 (2020 Form 10-K). |
Use of Estimates | The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect certain reported amounts and related disclosures. These estimates are based on historical experience and on various other assumptions that we believe to be reasonable from the facts available to us. Some of the assumptions are highly uncertain at the time of estimation. To the extent actual experience differs from the assumptions used, our consolidated financial statements could be materially affected. |
Revenue Recognition | In April 2020, we created our Recovery Credit program to assist in the economic recovery of our existing SMB clients and enhance our ability to retain these clients. Under this one-time program eligible clients will receive reductions against fees for future services, accounted for as a discount, over the following 12 months. This option to renew future services at a discount represents a material right and is accounted for as a performance obligation (Recovery Credit). This performance obligation will be satisfied when the clients have successfully renewed the services contracts and the future services are transferred. The consideration we receive that is allocated to this performance obligation is deferred as an unsatisfied performance obligation and is included in client deposits and other client liabilities on the balance sheet.Variable Consideration and Pricing AllocationOur contracts with clients generally do not include any variable consideration. However, 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. Credits based on the performance of our insurance costs are recorded as a reduction to insurance services revenues and included in client deposits and other client liabilities on the balance sheet. |
Accrued Health Insurance Costs | We sponsor and administer a number of employee benefit plans, including group health, dental, and vision as an employer plan sponsor under section 3(5) of the ERISA. In the nine months ended September 30, 2021, a majority of our group health insurance costs related to risk-based plans. Our remaining group health insurance costs were for guaranteed-cost policies. Accrued health insurance costs are established to provide for the estimated unpaid costs of reimbursing the carriers for paying claims within the deductible layer in accordance with risk-based health insurance policies. These accrued costs include estimates for reported losses, plus estimates for claims incurred but not paid. We assess accrued health insurance costs regularly based upon external actuarial studies that include other relevant factors such as current and historical claims payment patterns, plan enrollment and medical trend rates. |
Fair Value Measurement | We use an independent pricing source to determine the fair value of our securities. The independent pricing source utilizes various pricing models for each asset class, including the market approach. The inputs and assumptions for the pricing models are market observable inputs including trades of comparable securities, dealer quotes, credit spreads, yield curves and other market-related data. We have not adjusted the prices obtained from the independent pricing service and we believe the prices received from the independent pricing service are representative of the prices that would be received to sell the assets at the measurement date (exit price). The carrying value of the Company's cash equivalents and restricted cash equivalents approximate their fair values due to their short-term maturities. |
Stock Repurchases | We retire shares in the period they are acquired and account for the payment as a reduction to stockholders' equity. |
Description of Business and S_3
Description of Business and Significant Accounting Policies - (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Change in balance of the recovery credit unsatisfied performance obligation | The change in the balance of the Recovery Credit unsatisfied performance obligation was as follows: September 30, 2021 (in millions) Three Months Ended Nine Months Ended Balance at beginning of period $ 63 $ 92 (+) Accruals — 17 (-) Distributions to clients (24) (70) Balance at end of period $ 39 $ 39 |
Cash, Cash Equivalents and In_2
Cash, Cash Equivalents and Investments - Unrestricted and Restricted - (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Summary of Cash, Cash Equivalents and Investments | Our total cash, cash equivalents and investments are summarized below: September 30, 2021 December 31, 2020 (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 $ 525 $ — $ 525 $ 301 $ — $ 301 Investments — 155 155 — 57 57 Restricted cash, cash equivalents and investments: Payroll funds collected 863 — 863 1,228 — 1,228 Collateral for health benefits claims 24 94 118 16 82 98 Collateral for workers' compensation claims 57 — 57 60 — 60 Other security deposits 2 — 2 2 — 2 Total restricted cash, cash equivalents and investments 946 94 1,040 1,306 82 1,388 Investments, noncurrent — 167 167 — 138 138 Restricted cash, cash equivalents and investments, noncurrent Collateral for workers' compensation claims 31 145 176 36 174 210 Total $ 1,502 $ 561 $ 2,063 $ 1,643 $ 451 $ 2,094 |
Investments - (Tables)
Investments - (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of available-for-sale securities | The amortized cost, gross unrealized gains, gross unrealized losses, and fair values of our AFS investments as of September 30, 2021 and December 31, 2020 are presented below: September 30, 2021 December 31, 2020 (in millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Asset-backed securities $ 48 $ — $ — $ 48 $ 24 $ — $ — $ 24 Corporate bonds 171 1 — 172 126 2 — 128 U.S. government agencies and government- 18 — — 18 27 1 — 28 U.S. treasuries 299 2 — 301 261 4 — 265 Certificate of deposit 12 — — 12 — — — — Other debt securities 10 — — 10 6 — — 6 Total $ 558 $ 3 $ — $ 561 $ 444 $ 7 $ — $ 451 The gross proceeds from sales and maturities of AFS securities for the three and nine months ended September 30, 2021 and September 30, 2020 are presented below. We had immaterial gross realized gains and losses from sales of investments for the three and nine months ended September 30, 2021 and 2020. Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2021 2020 2021 2020 Gross proceeds from sales $ 51 $ 18 $ 131 $ 70 Gross proceeds from maturities 26 29 101 96 Total $ 77 $ 47 $ 232 $ 166 |
Fair value of debt investments by contractual maturity | The fair value of debt investments by contractual maturity are shown below: (in millions) September 30, 2021 One year or less $ 189 Over one year through five years 335 Over five years through ten years 7 Over ten years 30 Total fair value $ 561 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements - (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary 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 September 30, 2021 and December 31, 2020. (in millions) Level 1 Level 2 Total September 30, 2021 Cash equivalents: Money market mutual funds $ 2 $ — $ 2 U.S. treasuries — 3 3 Total cash equivalents 2 3 5 Investments: Asset-backed securities — 48 48 Corporate bonds — 140 140 U.S. government agencies and government-sponsored agencies — 2 2 U.S. treasuries — 122 122 Other debt securities — 10 10 Total investments — 322 322 Restricted cash equivalents: Money market mutual funds 95 — 95 U.S. treasuries — 1 1 Total restricted cash equivalents 95 1 96 Restricted investments: Corporate bonds — 32 32 U.S. government agencies and government-sponsored agencies — 16 16 U.S. treasuries — 179 179 Certificate of deposit — 12 12 Total restricted investments — 239 239 Total cash equivalents and investments and restricted cash equivalents and investments $ 97 $ 565 $ 662 (in millions) Level 1 Level 2 Total December 31, 2020 Cash equivalents Money market mutual funds $ 2 $ — $ 2 U.S. treasuries — 11 11 Total cash equivalents 2 11 13 Investments Asset-backed securities — 24 24 Corporate bonds — 93 93 U.S. government agencies and government-sponsored agencies — 5 5 U.S. treasuries — 67 67 Other debt securities — 6 6 Total investments — 195 195 Restricted cash equivalents: Money market mutual funds 99 — 99 Total restricted cash equivalents 99 — 99 Restricted investments: Corporate bonds — 35 35 U.S. government agencies and government-sponsored agencies — 23 23 U.S. treasuries — 198 198 Total restricted investments — 256 256 Total investments and restricted cash equivalents and investments $ 101 $ 462 $ 563 |
Accrued Workers' Compensation_2
Accrued Workers' Compensation Costs- (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Insurance [Abstract] | |
Summary of Activities in Liability for Unpaid Claims and Claims Adjustment Expenses | The following table summarizes the accrued workers’ compensation cost activity for the three and nine months ended September 30, 2021 and 2020: Three Months Ended Nine Months Ended (in millions) 2021 2020 2021 2020 Total accrued costs, beginning of period $ 198 $ 211 $ 205 $ 214 Incurred Current year 16 15 49 48 Prior years (3) (3) (18) (12) Total incurred 13 12 31 36 Paid Current year (3) (2) (6) (5) Prior years (10) (11) (32) (35) Total paid (13) (13) (38) (40) Total accrued costs, end of period $ 198 $ 210 $ 198 $ 210 The following summarizes workers' compensation liabilities on the condensed consolidated balance sheets: (in millions) September 30, 2021 December 31, 2020 Total accrued costs, end of period $ 198 $ 205 Collateral paid to carriers and offset against accrued costs (7) (8) Total accrued costs, net of carrier collateral offset $ 191 $ 197 Payable in less than 1 year $2 and $3 at September 30, 2021 and December 31, 2020, respectively) $ 54 $ 59 Payable in more than 1 year $5 and $5 at September 30, 2021 and December 31, 2020, respectively) 137 138 Total accrued costs, net of carrier collateral offset $ 191 $ 197 |
Long-Term Debt and Revolving _2
Long-Term Debt and Revolving Credit Agreements - (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | As of September 30, 2021 and December 31, 2020, our long-term debt consisted of the following: (in millions) September 30, 2021 December 31, 2020 2018 Term Loan A $ — $ 370 2029 Notes 500 — Principal amount 500 370 Deferred issuance costs (5) — Less: current portion — (22) Long-term debt, noncurrent $ 495 $ 348 Annual contractual interest rate 3.50 % 1.77 % Effective interest rate 3.67 % 1.87 % |
Stock Based Compensation - (Tab
Stock Based Compensation - (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of RSU and RSA activity under equity-based plans | The following tables summarize RSU and RSA activity for the nine months ended September 30, 2021: Time-based RSUs and RSAs Total Number of RSUs Total Number of RSAs Total Number of Shares Weighted-Average Grant Date Fair Value Nonvested at December 31, 2020 1,230,071 30,026 1,260,097 $ 54.04 Granted 528,524 — 528,524 82.67 Vested (471,212) (18,540) (489,752) 53.03 Forfeited (145,569) — (145,569) 60.50 Nonvested at September 30, 2021 1,141,814 11,486 1,153,300 $ 66.78 Performance-based RSUs and RSAs Total Number of RSUs Total Number of RSAs Total Number of Shares Weighted-Average Grant Date Fair Value Nonvested at December 31, 2020 167,127 16,052 183,179 $ 52.89 Granted 246,349 — 246,349 67.70 Vested (3,010) (16,052) (19,062) 47.61 Forfeited (9,459) — (9,459) 52.86 Nonvested at September 30, 2021 401,007 — 401,007 $ 62.24 |
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 September 30, Nine Months Ended September 30, (in millions) 2021 2020 2021 2020 Cost of providing services $ 3 $ 2 $ 9 $ 7 Sales and marketing 1 2 5 5 General and administrative 8 6 21 17 Systems development and programming costs 1 1 2 2 Total stock based compensation expense $ 13 $ 11 $ 37 $ 31 Total stock based compensation capitalized $ — $ — $ 1 $ 1 |
Stockholders' Equity - (Tables)
Stockholders' Equity - (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Schedule of common stock issued and outstanding | The following table shows the beginning and ending balances of our issued and outstanding common stock for the three and nine months ended September 30, 2021 and 2020: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Shares issued and outstanding, beginning balance 65,864,116 67,292,864 66,456,663 69,065,491 Issuance of common stock from vested restricted stock units 127,704 158,041 474,222 500,291 Issuance of common stock from exercise of stock options 29,570 25,075 59,305 65,684 Issuance of common stock for employee stock purchase plan — — 74,070 130,532 Repurchase of common stock (230,456) (521,137) (1,155,707) (2,688,538) Awards effectively repurchased for required employee withholding taxes (47,764) (56,859) (165,383) (175,476) Shares issued and outstanding, ending balance 65,743,170 66,897,984 65,743,170 66,897,984 |
Earnings Per Share (EPS) - (Tab
Earnings Per Share (EPS) - (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
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 Nine Months Ended (in millions, except per share data) 2021 2020 2021 2020 Net income $ 77 $ 33 $ 269 $ 250 Weighted average shares of common stock outstanding 66 67 66 68 Basic EPS $ 1.17 $ 0.49 $ 4.08 $ 3.69 Net income $ 77 $ 33 $ 269 $ 250 Weighted average shares of common stock outstanding 66 67 66 68 Dilutive effect of stock options and restricted stock units 1 1 1 1 Weighted average shares of common stock outstanding 67 68 67 69 Diluted EPS $ 1.16 $ 0.48 $ 4.03 $ 3.66 Common stock equivalents excluded from income per diluted share because of their anti-dilutive effect — — 1 1 |
Description of Business and S_4
Description of Business and Significant Accounting Policies - Narrative (Details) $ in Millions | 1 Months Ended | 9 Months Ended | |
Apr. 30, 2020USD ($) | Sep. 30, 2021USD ($)segment | Dec. 31, 2020USD ($) | |
Product Information [Line Items] | |||
Number of reportable segments | segment | 1 | ||
Performance obligation period (in months) | 12 months | ||
Recovery credit program, maximum allowed amount | $ 145 | ||
Incentive credits | $ 25 | ||
Prepayments offsetting accrued health insurance costs | $ 54 | $ 49 | |
Non-US | Revenue | Foreign Sales | |||
Product Information [Line Items] | |||
Percent of concentration risk (less than) | 1.00% | ||
Health Care | |||
Product Information [Line Items] | |||
Prepayments offsetting accrued health insurance costs | $ 65 | $ 58 |
Description of Business and S_5
Description of Business and Significant Accounting Policies - Unsatisfied Performance Obligation (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | |
Unsatisfied Performance Obligation [Roll Forward] | ||
Balance at beginning of period | $ 63 | $ 92 |
(+) Accruals | 0 | 17 |
(-) Distributions to clients | (24) | (70) |
Balance at end of period | $ 39 | $ 39 |
Cash, Cash Equivalents and In_3
Cash, Cash Equivalents and Investments - Unrestricted and Restricted - Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Cash and cash equivalents | $ 525 | $ 301 |
Investments | 155 | 57 |
Total restricted cash, cash equivalents and investments | 1,040 | 1,388 |
Investments, noncurrent | 167 | 138 |
Collateral for workers' compensation claims | 176 | 210 |
Total cash equivalents and investments and restricted cash equivalents and investments | 2,063 | 2,094 |
Cash and cash equivalents | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Cash and cash equivalents | 525 | 301 |
Investments | 0 | 0 |
Total restricted cash, cash equivalents and investments | 946 | 1,306 |
Investments, noncurrent | 0 | 0 |
Total cash equivalents and investments and restricted cash equivalents and investments | 1,502 | 1,643 |
Available-for-sale marketable securities | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Investments | 155 | 57 |
Total restricted cash, cash equivalents and investments | 94 | 82 |
Investments, noncurrent | 167 | 138 |
Total cash equivalents and investments and restricted cash equivalents and investments | 561 | 451 |
Payroll funds collected | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash, cash equivalents and investments | 863 | 1,228 |
Payroll funds collected | Cash and cash equivalents | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash, cash equivalents and investments | 863 | 1,228 |
Payroll funds collected | Available-for-sale marketable securities | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash, cash equivalents and investments | 0 | 0 |
Collateral for health benefits claims | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash, cash equivalents and investments | 118 | 98 |
Collateral for health benefits claims | Cash and cash equivalents | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash, cash equivalents and investments | 24 | 16 |
Collateral for health benefits claims | Available-for-sale marketable securities | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash, cash equivalents and investments | 94 | 82 |
Collateral for workers' compensation claims | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash, cash equivalents and investments | 57 | 60 |
Collateral for workers' compensation claims | 176 | 210 |
Collateral for workers' compensation claims | Cash and cash equivalents | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash, cash equivalents and investments | 57 | 60 |
Collateral for workers' compensation claims | 31 | 36 |
Collateral for workers' compensation claims | Available-for-sale marketable securities | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash, cash equivalents and investments | 0 | 0 |
Collateral for workers' compensation claims | 145 | 174 |
Other security deposits | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash, cash equivalents and investments | 2 | 2 |
Other security deposits | Cash and cash equivalents | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash, cash equivalents and investments | 2 | 2 |
Other security deposits | Available-for-sale marketable securities | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash, cash equivalents and investments | $ 0 | $ 0 |
Investments - Amortized Cost, G
Investments - Amortized Cost, Gross Unrealized Gains and Losses, Fair Values of Investments (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Securities | ||
Amortized Cost | $ 558 | $ 444 |
Gross Unrealized Gains | 3 | 7 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 561 | 451 |
Asset-backed securities | ||
Debt Securities | ||
Amortized Cost | 48 | 24 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 48 | 24 |
Corporate bonds | ||
Debt Securities | ||
Amortized Cost | 171 | 126 |
Gross Unrealized Gains | 1 | 2 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 172 | 128 |
U.S. government agencies and government- sponsored agencies | ||
Debt Securities | ||
Amortized Cost | 18 | 27 |
Gross Unrealized Gains | 0 | 1 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 18 | 28 |
U.S. treasuries | ||
Debt Securities | ||
Amortized Cost | 299 | 261 |
Gross Unrealized Gains | 2 | 4 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 301 | 265 |
Certificate of deposits | ||
Debt Securities | ||
Amortized Cost | 12 | 0 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 12 | 0 |
Other debt securities | ||
Debt Securities | ||
Amortized Cost | 10 | 6 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 10 | $ 6 |
Investments - Fair Value of Deb
Investments - Fair Value of Debt Investments by Contractual Maturity (Details) $ in Millions | Sep. 30, 2021USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
One year or less | $ 189 |
Over one year through five years | 335 |
Over five years through ten years | 7 |
Over ten years | 30 |
Total fair value | $ 561 |
Investments - Proceeds from ava
Investments - Proceeds from available-for-sale securities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Gross proceeds from sales | $ 51 | $ 18 | $ 131 | $ 70 |
Gross proceeds from maturities | 26 | 29 | 101 | 96 |
Total | $ 77 | $ 47 | $ 232 | $ 166 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements - Summary of Financial Instruments by Significant Categories and Fair Value Measurement on a Recurring Basis (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value, Financial Instruments [Line Items] | ||
Total investments | $ 561 | $ 451 |
Total cash equivalents and investments and restricted cash equivalents and investments | 2,063 | 2,094 |
Fair Value Measurement on a Recurring Basis | ||
Fair Value, Financial Instruments [Line Items] | ||
Total cash equivalents | 5 | 13 |
Total investments | 322 | 195 |
Total restricted cash equivalents | 96 | 99 |
Total restricted investments | 239 | 256 |
Total cash equivalents and investments and restricted cash equivalents and investments | 662 | 563 |
Fair Value Measurement on a Recurring Basis | Level 1 | ||
Fair Value, Financial Instruments [Line Items] | ||
Total cash equivalents | 2 | 2 |
Total investments | 0 | 0 |
Total restricted cash equivalents | 95 | 99 |
Total restricted investments | 0 | 0 |
Total cash equivalents and investments and restricted cash equivalents and investments | 97 | 101 |
Fair Value Measurement on a Recurring Basis | Level 2 | ||
Fair Value, Financial Instruments [Line Items] | ||
Total cash equivalents | 3 | 11 |
Total investments | 322 | 195 |
Total restricted cash equivalents | 1 | 0 |
Total restricted investments | 239 | 256 |
Total cash equivalents and investments and restricted cash equivalents and investments | 565 | 462 |
Money market mutual funds | Fair Value Measurement on a Recurring Basis | ||
Fair Value, Financial Instruments [Line Items] | ||
Total cash equivalents | 2 | 2 |
Total restricted cash equivalents | 95 | 99 |
Money market mutual funds | Fair Value Measurement on a Recurring Basis | Level 1 | ||
Fair Value, Financial Instruments [Line Items] | ||
Total cash equivalents | 2 | 2 |
Total restricted cash equivalents | 95 | 99 |
Money market mutual funds | Fair Value Measurement on a Recurring Basis | Level 2 | ||
Fair Value, Financial Instruments [Line Items] | ||
Total cash equivalents | 0 | 0 |
Total restricted cash equivalents | 0 | 0 |
U.S. treasuries | Fair Value Measurement on a Recurring Basis | ||
Fair Value, Financial Instruments [Line Items] | ||
Total cash equivalents | 3 | 11 |
Total restricted cash equivalents | 1 | |
U.S. treasuries | Fair Value Measurement on a Recurring Basis | Level 1 | ||
Fair Value, Financial Instruments [Line Items] | ||
Total cash equivalents | 0 | 0 |
Total restricted cash equivalents | 0 | |
U.S. treasuries | Fair Value Measurement on a Recurring Basis | Level 2 | ||
Fair Value, Financial Instruments [Line Items] | ||
Total cash equivalents | 3 | 11 |
Total restricted cash equivalents | 1 | |
Asset-backed securities | ||
Fair Value, Financial Instruments [Line Items] | ||
Total investments | 48 | 24 |
Asset-backed securities | Fair Value Measurement on a Recurring Basis | ||
Fair Value, Financial Instruments [Line Items] | ||
Total investments | 48 | 24 |
Asset-backed securities | Fair Value Measurement on a Recurring Basis | Level 1 | ||
Fair Value, Financial Instruments [Line Items] | ||
Total investments | 0 | 0 |
Asset-backed securities | Fair Value Measurement on a Recurring Basis | Level 2 | ||
Fair Value, Financial Instruments [Line Items] | ||
Total investments | 48 | 24 |
Corporate bonds | ||
Fair Value, Financial Instruments [Line Items] | ||
Total investments | 172 | 128 |
Corporate bonds | Fair Value Measurement on a Recurring Basis | ||
Fair Value, Financial Instruments [Line Items] | ||
Total investments | 140 | 93 |
Total restricted investments | 32 | 35 |
Corporate bonds | Fair Value Measurement on a Recurring Basis | Level 1 | ||
Fair Value, Financial Instruments [Line Items] | ||
Total investments | 0 | 0 |
Total restricted investments | 0 | 0 |
Corporate bonds | Fair Value Measurement on a Recurring Basis | Level 2 | ||
Fair Value, Financial Instruments [Line Items] | ||
Total investments | 140 | 93 |
Total restricted investments | 32 | 35 |
U.S. government agencies and government- sponsored agencies | ||
Fair Value, Financial Instruments [Line Items] | ||
Total investments | 18 | 28 |
U.S. government agencies and government- sponsored agencies | Fair Value Measurement on a Recurring Basis | ||
Fair Value, Financial Instruments [Line Items] | ||
Total investments | 2 | 5 |
Total restricted investments | 16 | 23 |
U.S. government agencies and government- sponsored agencies | Fair Value Measurement on a Recurring Basis | Level 1 | ||
Fair Value, Financial Instruments [Line Items] | ||
Total investments | 0 | 0 |
Total restricted investments | 0 | 0 |
U.S. government agencies and government- sponsored agencies | Fair Value Measurement on a Recurring Basis | Level 2 | ||
Fair Value, Financial Instruments [Line Items] | ||
Total investments | 2 | 5 |
Total restricted investments | 16 | 23 |
U.S. treasuries | ||
Fair Value, Financial Instruments [Line Items] | ||
Total investments | 301 | 265 |
U.S. treasuries | Fair Value Measurement on a Recurring Basis | ||
Fair Value, Financial Instruments [Line Items] | ||
Total investments | 122 | 67 |
Total restricted investments | 179 | 198 |
U.S. treasuries | Fair Value Measurement on a Recurring Basis | Level 1 | ||
Fair Value, Financial Instruments [Line Items] | ||
Total investments | 0 | 0 |
Total restricted investments | 0 | 0 |
U.S. treasuries | Fair Value Measurement on a Recurring Basis | Level 2 | ||
Fair Value, Financial Instruments [Line Items] | ||
Total investments | 122 | 67 |
Total restricted investments | 179 | 198 |
Other debt securities | ||
Fair Value, Financial Instruments [Line Items] | ||
Total investments | 10 | 6 |
Other debt securities | Fair Value Measurement on a Recurring Basis | ||
Fair Value, Financial Instruments [Line Items] | ||
Total investments | 10 | 6 |
Other debt securities | Fair Value Measurement on a Recurring Basis | Level 1 | ||
Fair Value, Financial Instruments [Line Items] | ||
Total investments | 0 | 0 |
Other debt securities | Fair Value Measurement on a Recurring Basis | Level 2 | ||
Fair Value, Financial Instruments [Line Items] | ||
Total investments | 10 | 6 |
Certificate of deposits | ||
Fair Value, Financial Instruments [Line Items] | ||
Total investments | 12 | $ 0 |
Certificate of deposits | Fair Value Measurement on a Recurring Basis | ||
Fair Value, Financial Instruments [Line Items] | ||
Total restricted investments | 12 | |
Certificate of deposits | Fair Value Measurement on a Recurring Basis | Level 1 | ||
Fair Value, Financial Instruments [Line Items] | ||
Total restricted investments | 0 | |
Certificate of deposits | Fair Value Measurement on a Recurring Basis | Level 2 | ||
Fair Value, Financial Instruments [Line Items] | ||
Total restricted investments | $ 12 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Fair Value Measurement on a Recurring Basis | Interest Rate Contract | Level 2 | ||
Debt Instrument [Line Items] | ||
Derivative liability | $ 1 | |
Loss on derivative instruments | $ (1) | |
2029 Notes | ||
Debt Instrument [Line Items] | ||
Fair value of notes payable | $ 504 |
Accrued Workers' Compensation_3
Accrued Workers' Compensation Costs - Summary of Workers' Compensation Loss Reserve Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||
Total accrued costs, beginning of period | $ 198 | $ 211 | $ 205 | $ 214 |
Incurred | ||||
Current year | 16 | 15 | 49 | 48 |
Prior years | (3) | (3) | (18) | (12) |
Total incurred | 13 | 12 | 31 | 36 |
Paid | ||||
Current year | (3) | (2) | (6) | (5) |
Prior years | (10) | (11) | (32) | (35) |
Total paid | (13) | (13) | (38) | (40) |
Total accrued costs, end of period | $ 198 | $ 210 | $ 198 | $ 210 |
Accrued Workers' Compensation_4
Accrued Workers' Compensation Costs - Summary of Workers' Compensation Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Insurance [Abstract] | ||||||
Total accrued costs, end of period | $ 198 | $ 198 | $ 205 | $ 210 | $ 211 | $ 214 |
Collateral paid to carriers and offset against accrued costs | (7) | (8) | ||||
Total accrued costs, net of carrier collateral offset | 191 | 197 | ||||
Payable in less than 1 year (net of collateral paid to carriers) | 54 | 59 | ||||
Payable in more than 1 year (net of collateral paid to carriers) | 137 | 138 | ||||
Net of collateral paid to carriers, payable in less than one year | 2 | 3 | ||||
Net of collateral paid to carriers, payable in more than 1 year | $ 5 | $ 5 |
Accrued Workers' Compensation_5
Accrued Workers' Compensation Costs - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Insurance [Abstract] | ||
Collateral held by insurance carriers | $ 43 | $ 45 |
Liability for unpaid claims and claims adjustment expense, collateral | $ 7 | $ 8 |
Long-Term Debt and Revolving _3
Long-Term Debt and Revolving Credit Agreements - Schedule of Long-Term Debt (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Line of Credit Facility [Line Items] | ||
Principal amount | $ 500 | $ 370 |
Deferred issuance costs | (5) | 0 |
Less: current portion | 0 | (22) |
Long-term debt, noncurrent | $ 495 | $ 348 |
Annual contractual interest rate | 3.50% | 1.77% |
Effective interest rate | 3.67% | 1.87% |
2018 Term Loan A | Loans Payable | ||
Line of Credit Facility [Line Items] | ||
Principal amount | $ 0 | $ 370 |
2029 Notes | Loans Payable | ||
Line of Credit Facility [Line Items] | ||
Principal amount | $ 500 | $ 0 |
Long-Term Debt and Revolving _4
Long-Term Debt and Revolving Credit Agreements - Narrative (Details) - USD ($) | 1 Months Ended | |||
Feb. 28, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2018 | |
Line of Credit Facility [Line Items] | ||||
Annual contractual interest rate | 3.50% | 1.77% | ||
2018 Term Loan A | Loans Payable | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, face amount | $ 425,000,000 | |||
2018 Revolver | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 250,000,000 | |||
2029 Notes | Senior Notes | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, face amount | $ 500,000,000 | |||
Annual contractual interest rate | 3.50% | |||
2029 Notes | Senior Notes | Before March, 01, 2024 | Full Redemption | ||||
Line of Credit Facility [Line Items] | ||||
Redemption price percentage | 100.00% | |||
2029 Notes | Senior Notes | Before March, 01, 2024 | Partial Redemption | ||||
Line of Credit Facility [Line Items] | ||||
Redemption price percentage | 103.50% | |||
Percentage of principal amount redeemed | 40.00% | |||
2029 Notes | Senior Notes | After March, 01, 2024 | ||||
Line of Credit Facility [Line Items] | ||||
Redemption price percentage | 101.75% | |||
2029 Notes | Senior Notes | March 01, 2025 | ||||
Line of Credit Facility [Line Items] | ||||
Redemption price percentage | 100.875% | |||
2029 Notes | Senior Notes | March, 01, 2026 | ||||
Line of Credit Facility [Line Items] | ||||
Redemption price percentage | 100.00% | |||
2021 Revolving Credit Facility | Revolving Credit Facility | Line of credit | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 500,000,000 | |||
Remaining borrowing capacity | $ 491,000,000 | |||
2021 Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | Line of credit | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 1.00% | |||
2021 Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | Line of credit | Credit Rating Below Investment Grade | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 1.125% | |||
2021 Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | Line of credit | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 1.25% | |||
2021 Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | Line of credit | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 2.00% | |||
2021 Revolving Credit Facility | Base Rate | Revolving Credit Facility | Line of credit | Credit Rating Below Investment Grade | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 0.125% | |||
2021 Revolving Credit Facility | Base Rate | Revolving Credit Facility | Line of credit | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 0.25% | |||
2021 Revolving Credit Facility | Base Rate | Revolving Credit Facility | Line of credit | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 1.00% | |||
2021 Revolving Credit Facility | Fed Funds Effective Rate Overnight Index Swap Rate | Revolving Credit Facility | Line of credit | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 0.50% |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) | Sep. 29, 2020retirementPlan |
Commitments and Contingencies Disclosure [Abstract] | |
Number of retirement plans subject to class action | 2 |
Stock Based Compensation - Narr
Stock Based Compensation - Narrative (Details) | 9 Months Ended |
Sep. 30, 2021 | |
Time-based RSUs and RSAs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period (in years) | 4 years |
Time-based RSUs and RSAs | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percent of share value | 0.00% |
Time-based RSUs and RSAs | 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 2021 and 2020 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 (in years) | 1 year |
Amount of shares that are expected to vest (as a percent ) | 50.00% |
Stock Based Compensation - Summ
Stock Based Compensation - Summary Of RSU And RSA Activity (Details) | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Time-based RSUs and RSAs | |
Number of Shares | |
Balance (in shares) | 1,260,097 |
Granted (in shares) | 528,524 |
Vested (in shares) | (489,752) |
Forfeited (in shares) | (145,569) |
Balance (in shares) | 1,153,300 |
Weighted-Average Grant Date Fair Value | |
Balance (in dollars per share) | $ / shares | $ 54.04 |
Granted (in dollars per share) | $ / shares | 82.67 |
Vested (in dollars per share) | $ / shares | 53.03 |
Forfeited (in dollars per share) | $ / shares | 60.50 |
Balance (in dollars per share) | $ / shares | $ 66.78 |
Time-Based Restricted Stock Units | |
Number of Shares | |
Balance (in shares) | 1,230,071 |
Granted (in shares) | 528,524 |
Vested (in shares) | (471,212) |
Forfeited (in shares) | (145,569) |
Balance (in shares) | 1,141,814 |
Time-Based Restricted Stock Awards | |
Number of Shares | |
Balance (in shares) | 30,026 |
Granted (in shares) | 0 |
Vested (in shares) | (18,540) |
Forfeited (in shares) | 0 |
Balance (in shares) | 11,486 |
Performance-based RSUs and RSAs | |
Number of Shares | |
Balance (in shares) | 183,179 |
Granted (in shares) | 246,349 |
Vested (in shares) | (19,062) |
Forfeited (in shares) | (9,459) |
Balance (in shares) | 401,007 |
Weighted-Average Grant Date Fair Value | |
Balance (in dollars per share) | $ / shares | $ 52.89 |
Granted (in dollars per share) | $ / shares | 67.70 |
Vested (in dollars per share) | $ / shares | 47.61 |
Forfeited (in dollars per share) | $ / shares | 52.86 |
Balance (in dollars per share) | $ / shares | $ 62.24 |
Performance-Based Restricted Stock Units | |
Number of Shares | |
Balance (in shares) | 167,127 |
Granted (in shares) | 246,349 |
Vested (in shares) | (3,010) |
Forfeited (in shares) | (9,459) |
Balance (in shares) | 401,007 |
Performance-Based Restricted Stock Awards | |
Number of Shares | |
Balance (in shares) | 16,052 |
Granted (in shares) | 0 |
Vested (in shares) | (16,052) |
Forfeited (in shares) | 0 |
Balance (in shares) | 0 |
Stock Based Compensation - Stoc
Stock Based Compensation - Stock Based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock based compensation expense | $ 13 | $ 11 | $ 37 | $ 31 |
Total stock based compensation capitalized | 0 | 0 | 1 | 1 |
Cost of providing services | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock based compensation expense | 3 | 2 | 9 | 7 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock based compensation expense | 1 | 2 | 5 | 5 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock based compensation expense | 8 | 6 | 21 | 17 |
Systems development and programming costs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock based compensation expense | $ 1 | $ 1 | $ 2 | $ 2 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Common Stock (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Shares issued beginning balance (in shares) | 65,864,116 | 67,292,864 | 66,456,663 | 69,065,491 |
Repurchase of common stock (in shares) | (230,456) | (521,137) | (1,155,707) | (2,688,538) |
Awards effectively repurchased for required employee withholding taxes (in shares) | (47,764) | (56,859) | (165,383) | (175,476) |
Shares issued ending balance (in shares) | 65,743,170 | 66,897,984 | 65,743,170 | 66,897,984 |
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) | 127,704 | 158,041 | 474,222 | 500,291 |
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) | 29,570 | 25,075 | 59,305 | 65,684 |
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) | 0 | 0 | 74,070 | 130,532 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Equity [Abstract] | ||||
Repurchase of common stock (in shares) | 230,456 | 521,137 | 1,155,707 | 2,688,538 |
Repurchase of common stock | $ 94 | |||
Amount available for further repurchases under stock repurchase program | $ 264 | $ 264 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | Jan. 18, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Income Tax Contingency [Line Items] | |||||
Effective income tax rate | 25.00% | 14.00% | 24.00% | 24.00% | |
Decrease in unrecognized tax benefits | $ 1 | ||||
Amount awarded | $ 15 | ||||
Internal Revenue Service | |||||
Income Tax Contingency [Line Items] | |||||
Income taxes paid | 11 | ||||
Interest payment | $ 4 | $ 4 |
Earnings Per Share (EPS) - Comp
Earnings Per Share (EPS) - Computation of Basic and Diluted EPS Attributable to Common Stock (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 77 | $ 33 | $ 269 | $ 250 |
Weighted average shares of common stock outstanding (in shares) | 66 | 67 | 66 | 68 |
Basic earnings per share (in dollars per share) | $ 1.17 | $ 0.49 | $ 4.08 | $ 3.69 |
Net income | $ 77 | $ 33 | $ 269 | $ 250 |
Dilutive effect of stock options and restricted stock units (in shares) | 1 | 1 | 1 | 1 |
Weighted average shares of common stock outstanding - diluted (in shares) | 67 | 68 | 67 | 69 |
Diluted earnings per share (in dollars per share) | $ 1.16 | $ 0.48 | $ 4.03 | $ 3.66 |
Common stock equivalents excluded from income per diluted share because of their anti-dilutive effect (in shares) | 0 | 0 | 1 | 1 |