What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2022-10-31 compared with 2022-08-02 · 93 added, 78 removed, 317 unchanged (35% of the section changed)

1 unchanged sentence

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands) June 30, 2022 December 31, 2021

(in thousands) September 30, 2022 December 31, 2021

Cash and cash equivalents $ 562,143 $ 575,812

23 unchanged sentences

Other accrued liabilities 65,053 69,303

Income taxes payable 455 —

Total current liabilities 1,121,248 1,128,573

Accrued workers’ compensation cost, net of current 173,686 192,694

Accrued workers’ compensation costs, net of current 174,664 192,694

Long-term debt 369,400 369,400

Operating lease liabilities, net of current 55,691 64,192

Deferred income taxes, net 9,172 —

Total noncurrent liabilities 599,755 626,286

7 unchanged sentences

See accompanying notes.

Insperity | 2022 Second Quarter Form 10-Q

Insperity | 2022 Third Quarter Form 10-Q

FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

(in thousands, except per share amounts) 2022 2021 2022 2021

25 unchanged sentences

(1) Revenues are comprised of gross billings less WSEE payroll costs as follows:

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

(in thousands) 2022 2021 2022 2021

3 unchanged sentences

See accompanying notes.

Insperity | 2022 Second Quarter Form 10-Q

Insperity | 2022 Third Quarter Form 10-Q

FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS OF CASH FLOWS

Six Months Ended June 30,

Nine Months Ended September 30,

(in thousands) 2022 2021

31 unchanged sentences

Net cash used in financing activities ( 123,416 ) ( 95,156 )

Net decrease in cash, cash equivalents and restricted cash ( 77,493 ) ( 81,572 )

Cash, cash equivalents and restricted cash beginning of period 807,768 786,699

Cash, cash equivalents and restricted cash end of period $ 730,275 $ 705,127

Insperity | 2022 Second Quarter Form 10-Q

FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)

Six Months Ended June 30,

(in thousands) 2022 2021

Supplemental schedule of cash and cash equivalents and restricted cash

Cash and cash equivalents $ 575,812 $ 554,846

Restricted cash 46,929 45,522

Deposits – workers’ compensation 185,027 186,331

Cash, cash equivalents and restricted cash beginning of period $ 807,768 $ 786,699

Cash and cash equivalents $ 510,869 $ 455,387

Restricted cash 53,329 46,128

Deposits – workers’ compensation 166,077 203,612

Cash, cash equivalents and restricted cash end of period $ 730,275 $ 705,127

Net decrease in cash, cash equivalents, restricted cash and funds held for clients ( 21,237 ) ( 62,729 )

Cash, cash equivalents, restricted cash and funds held for clients beginning of period 839,500 786,699

Cash, cash equivalents, restricted cash and funds held for clients end of period $ 818,263 $ 723,970

Supplemental operating lease cash flow information:

1 unchanged sentence

See accompanying notes.

Insperity | 2022 Second Quarter Form 10-Q

Insperity | 2022 Third Quarter Form 10-Q

FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

For the Six Months Ended June 30, 2022 and 2021

For the Nine Months Ended September 30, 2022 and 2021

Common Stock Issued Additional Paid-In Capital Treasury Stock Retained Earnings and AOCI Total

8 unchanged sentences

Net income — — — — 141,152 141,152

Balance at June 30, 2022 55,489 $ 555 $ 125,622 $ ( 709,810 ) $ 618,765 $ 35,132

Balance at September 30, 2022 55,489 $ 555 $ 139,370 $ ( 716,046 ) $ 636,624 $ 60,503

Balance at December 31, 2020 55,489 $ 555 $ 95,528 $ ( 626,984 ) $ 575,033 $ 44,132

7 unchanged sentences

Net income — — — — 114,372 114,372

Balance at June 30, 2021 55,489 $ 555 $ 94,396 $ ( 635,627 ) $ 627,938 $ 87,262

Insperity | 2022 Second Quarter Form 10-Q

Balance at September 30, 2021 55,489 $ 555 $ 104,587 $ ( 645,993 ) $ 637,857 $ 97,006

Insperity | 2022 Third Quarter Form 10-Q

FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Continued)

For the Three Months Ended June 30, 2022 and 2021

For the Three Months Ended September 30, 2022 and 2021

Common Stock Issued Additional Paid-In Capital Treasury Stock Retained Earnings and AOCI Total

(in thousands) Shares Amount

Balance at March 31, 2022 55,489 $ 555 $ 110,053 $ ( 681,625 ) $ 604,978 $ 33,961

Balance at June 30, 2022 55,489 $ 555 $ 125,622 $ ( 709,810 ) $ 618,765 $ 35,132

Purchase of treasury stock, at cost — — — ( 6,615 ) — ( 6,615 )

3 unchanged sentences

Dividends paid — — — — ( 19,769 ) ( 19,769 )

Unrealized gain on marketable securities, net of tax — — — — 41 41

Unrealized loss on marketable securities, net of tax — — — — ( 34 ) ( 34 )

Net income — — — — 37,669 37,669

Balance at September 30, 2022 55,489 $ 555 $ 139,370 $ ( 716,046 ) $ 636,624 $ 60,503

Balance at June 30, 2021 55,489 $ 555 $ 94,396 $ ( 635,627 ) $ 627,938 $ 87,262

Balance at March 31, 2021 55,489 $ 555 $ 81,329 $ ( 628,391 ) $ 620,151 $ 73,644

Purchase of treasury stock, at cost — — — ( 11,234 ) — ( 11,234 )

Issuance of long-term incentive awards and dividend equivalents

— — ( 27 ) 28 ( 1 ) —

Stock-based compensation expense — — 9,827 535 — 10,362

1 unchanged sentence

Dividends paid — — — — ( 17,369 ) ( 17,369 )

Unrealized loss on marketable securities, net of tax — — — — ( 7 ) ( 7 )

Net income — — — — 27,296 27,296

Balance at June 30, 2021 55,489 $ 555 $ 94,396 $ ( 635,627 ) $ 627,938 $ 87,262

Balance at September 30, 2021 55,489 $ 555 $ 104,587 $ ( 645,993 ) $ 637,857 $ 97,006

See accompanying notes.

Insperity | 2022 Second Quarter Form 10-Q

Insperity | 2022 Third Quarter Form 10-Q

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1 unchanged sentence

Insperity, Inc., a Delaware corporation (“Insperity,” “we,” “our,” and “us”), provides an array of human resources (“HR”) and business solutions designed to help improve business performance.

Our most comprehensive HR services offerings are provided through our professional employer organization (“PEO”) services, known as Workforce Optimization ® and Workforce Synchronization TM solutions (together, our “PEO HR Outsourcing solutions”), which we provide by entering into a co-employment relationship with our clients.

Our most comprehensive HR services offerings are provided through our professional employer organization (“PEO”) services, known as our Workforce Optimization ® and Workforce Synchronization TM solutions (together, our “PEO HR Outsourcing Solutions”), which we provide by entering into a co-employment relationship with our clients.

Our PEO HR Outsourcing Solutions encompass a broad range of HR functions, including payroll and employment administration, employee benefits, workers’ compensation, government compliance, performance management, and training and development services, along with our cloud-based human capital management solution, the Insperity Premier TM platform.

In addition to our PEO HR Outsourcing solutions, we offer a comprehensive traditional payroll and human capital management solution, known as our Workforce Acceleration TM solution.

In addition to our PEO HR Outsourcing Solutions, we offer a comprehensive traditional payroll and human capital management solution, known as our Workforce Acceleration TM solution (our “Traditional Payroll Solution”).

We also offer a number of other business performance solutions, including Organizational Planning, Recruiting Services, Employment Screening, Retirement Services, and Insurance Services.

7 unchanged sentences

Our Condensed Consolidated Balance Sheet at December 31, 2021 has been derived from the audited financial statements at that date, but does not include all of the information or footnotes required by GAAP for complete financial statements.

Our Condensed Consolidated Balance Sheet at June 30, 2022 and our Consolidated Statements of Operations for the three and six month periods ended June 30, 2022 and 2021, our Consolidated Statements of Cash Flows for the six month periods ended June 30, 2022 and 2021 and our Consolidated Statements of Stockholders’ Equity for the three and six month periods ended June 30, 2022 and 2021, have been prepared by us without audit.

Our Condensed Consolidated Balance Sheet at September 30, 2022 and our Consolidated Statements of Operations for the three and nine month periods ended September 30, 2022 and 2021, our Consolidated Statements of Cash Flows for the nine month periods ended September 30, 2022 and 2021 and our Consolidated Statements of Stockholders’ Equity for the three and nine month periods ended September 30, 2022 and 2021, have been prepared by us without audit.

In the opinion of management, all adjustments necessary to present fairly the consolidated financial position, results of operations and cash flows have been made, and all such adjustments are of a normal recurring nature.

Certain prior year amounts have been reclassified to conform to the 2022 presentation.

The results of operations for the interim periods are not necessarily indicative of the operating results for a full year or of future operations.

1 unchanged sentence

Health Insurance Costs

We provide group health insurance coverage to our WSEEs in our PEO HR Outsourcing solutions through a national network of carriers, including UnitedHealthcare (“United”), UnitedHealthcare of California, Kaiser Permanente, Blue Shield of California, HMSA BlueCross BlueShield of Hawaii, and Tufts, all of which provide fully insured policies or service contracts.

We provide group health insurance coverage under a single-employer plan that covers both our WSEEs and our corporate employees and utilizes a national network of carriers, including UnitedHealthcare (“United”), UnitedHealthcare of California, Kaiser Permanente, Blue Shield of California, HMSA BlueCross BlueShield of Hawaii, and Tufts, all of which provide fully insured policies or service contracts.

The policy with United provides approximately 87 % of our participants’ health insurance coverage.

7 unchanged sentences

Each reporting

Insperity | 2022 Second Quarter Form 10-Q

Insperity | 2022 Third Quarter Form 10-Q

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

4 unchanged sentences

The terms of the arrangement require us to maintain an accumulated cash surplus in the plan of $ 9.0 million, which is reported as long-term prepaid insurance.

In addition, United requires a deposit equal to approximately one day of claims funding activity, which was $ 6.5 million at June 30, 2022, and is included in deposits - health insurance as a long-term asset on our Condensed Consolidated Balance Sheets.

As of June 30, 2022, Plan Costs were less than the net premiums paid and owed to United by $ 41.8 million.

In addition, United requires a deposit equal to approximately one day of claims funding activity, which was $ 6.5 million at September 30, 2022, and is included in deposits - health insurance as a long-term asset on our Condensed Consolidated Balance Sheets.

As of September 30, 2022, Plan Costs were less than the net premiums paid and owed to United by $ 25.2 million.

As this amount is in excess of the agreed-upon $ 9.0 million surplus maintenance level, the $ 16.2 million difference is included in prepaid insurance, a current asset, in our Condensed Consolidated Balance Sheets.

The premiums, including the additional quarterly premiums, owed to United at June 30, 2022 were $ 55.9 million, which is included in accrued health insurance costs, a current liability in our Condensed Consolidated Balance Sheets.

Our benefits costs incurred in the first six months of 2022 included an increase of $ 10.2 million for changes in estimated run-off related to prior periods.

Our benefits costs incurred in the first six months of 2021 included an increase of $ 5.7 million for changes in estimated run-off related to prior periods.

The premiums, including the additional quarterly premiums, owed to United at September 30, 2022 were $ 57.6 million, which is included in accrued health insurance costs, a current liability in our Condensed Consolidated Balance Sheets.

Our benefits costs incurred in the first nine months of 2022 included an increase of $ 12.8 million for changes in estimated run-off related to prior periods.

Our benefits costs incurred in the first nine months of 2021 included an increase of $ 4.5 million for changes in estimated run-off related to prior periods.

Workers’ Compensation Costs

9 unchanged sentences

Each reporting period, changes in the actuarial assumptions resulting from changes in actual claims experience and other trends are incorporated into our workers’ compensation claims cost estimates.

During the six months ended June 30, 2022 and 2021, we reduced accrued workers’ compensation costs by $ 26.8 million and $ 23.0 million, respectively, for changes in estimated losses related to prior reporting periods.

During the nine months ended September 30, 2022 and 2021, we reduced accrued workers’ compensation costs by $ 35.3 million and $ 31.4 million, respectively, for changes in estimated losses related to prior reporting periods.

Workers’ compensation cost estimates are discounted to present value at a rate based upon the U.S.

Treasury rates that correspond with the weighted average estimated claim payout period (the average discount rate utilized in the 2022 period was 2.5 % and in the 2021 period was 0.5 %) and are accreted over the estimated claim payment period and included as a component of direct costs in our Consolidated Statements of Operations.

Insperity | 2022 Second Quarter Form 10-Q

Insperity | 2022 Third Quarter Form 10-Q

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table provides the activity and balances related to incurred but not paid workers’ compensation claims:

Six Months Ended June 30,

Nine Months Ended September 30,

(in thousands) 2022 2021

7 unchanged sentences

Total accrued claims $ 226,493 $ 239,006

The current portion of accrued workers’ compensation costs on our Condensed Consolidated Balance Sheets at June 30, 2022 includes $ 4.8 million of workers’ compensation administrative fees.

As of June 30, 2022 and 2021, the undiscounted accrued workers’ compensation costs were $ 243.9 million and $ 254.8 million, respectively.

The current portion of accrued workers’ compensation costs on our Condensed Consolidated Balance Sheets at September 30, 2022 includes $ 5.2 million of workers’ compensation administrative fees.

As of September 30, 2022 and 2021, the undiscounted accrued workers’ compensation costs were $ 245.5 million and $ 254.5 million, respectively.

At the beginning of each policy period, the workers’ compensation insurance carrier establishes monthly funding requirements comprised of premium costs and funds to be set aside for payment of future claims (“claim funds”).

1 unchanged sentence

Monies funded into the program for incurred claims expected to be paid within one year are recorded as restricted cash, a short-term asset, while the remainder of claim funds are included in deposits – workers’ compensation, a long-term asset in our Condensed Consolidated Balance Sheets.

During the first six months of 2022, we received $ 30.2 million for the return of excess claim funds related to the workers’ compensation program, which resulted in a decrease to deposits - workers’ compensation.

At June 30, 2022, we had restricted cash of $ 53.3 million and deposits – workers’ compensation of $ 166.1 million.

During the first nine months of 2022, we received $ 30.2 million for the return of excess claim funds related to the workers’ compensation program, which resulted in a decrease to deposits - workers’ compensation.

At September 30, 2022, we had restricted cash of $ 51.8 million and deposits – workers’ compensation of $ 179.0 million.

Our estimate of incurred claim costs expected to be paid within one year is included in short-term liabilities, while our estimate of incurred claim costs expected to be paid beyond one year is included in long-term liabilities on our Condensed Consolidated Balance Sheets.

8 unchanged sentences

Customers are invoiced concurrently with each periodic payroll of its WSEEs.

Revenues that have been recognized but unbilled of $ 674.4 million and $ 490.5 million at June 30, 2022 and December 31, 2021, respectively, are included in accounts receivable, net on our Condensed Consolidated Balance Sheets.

Pursuant to the “practical expedients” provided under Accounting Standards Update No 2014-09, we expense sales commissions when incurred because the terms of our contracts generally are cancellable by either party with a 30-day notice.

Revenues that have been recognized but unbilled of $ 547.6 million and $ 490.5 million at September 30, 2022 and December 31, 2021, respectively, are included in accounts receivable, net on our Condensed Consolidated Balance Sheets.

Pursuant to the “practical expedients” provided under Accounting Standards Codification 606, Revenues from Contracts with Customers , we expense sales commissions when incurred because the terms of our contracts generally are cancellable by either party with a 30-day notice.

These costs are recorded in commissions in our Consolidated Statements of Operations.

Insperity | 2022 Second Quarter Form 10-Q

Insperity | 2022 Third Quarter Form 10-Q

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Our revenue for our PEO HR Outsourcing Solutions by geographic region and for our other products and services offerings are as follows:

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

(in thousands) 2022 2021 % Change 2022 2021 % Change

7 unchanged sentences

Total revenue $ 1,439,160 $ 1,209,628 19.0 % $ 4,449,104 $ 3,681,834 20.8 %

Other Balance Sheet Information

Cash, Cash Equivalents and Marketable Securities

The following table summarizes our cash and investments in cash equivalents and marketable securities held by investment managers and overnight investments:

June 30, 2022 December 31, 2021

September 30, 2022 December 31, 2021

(in thousands) Cash & Cash Equivalents Marketable Securities Total Cash & Cash Equivalents Marketable Securities Total

5 unchanged sentences

Our cash and overnight holdings fluctuate based on the timing of clients’ payroll processing cycles.

Our cash, cash equivalents and marketable securities at June 30, 2022 and December 31, 2021 included $ 258.2 million and $ 424.8 million, respectively, of funds associated with federal and state income tax withholdings, employment taxes, and other payroll deductions, as well as $ 116.6 million and $ 20.1 million, respectively, in client prepayments.

Our cash, cash equivalents and marketable securities at September 30, 2022 and December 31, 2021 included $ 321.9 million and $ 424.8 million, respectively, of funds associated with federal and state income tax withholdings, employment taxes, and other payroll deductions, as well as $ 35.8 million and $ 20.1 million, respectively, in client prepayments.

Insperity | 2022 Third Quarter Form 10-Q

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Cash, Cash Equivalents, Restricted Cash and Funds Held for Clients

The following table summarized our cash, cash equivalents, restricted cash and funds held for clients as reported in our Consolidated Statements of Cash Flows:

Nine Months Ended September 30,

(in thousands) 2022 2021

Supplemental schedule of cash and cash equivalents, restricted cash and funds held for clients

Cash and cash equivalents $ 575,812 $ 554,846

Restricted cash 46,929 45,522

Other current assets - funds held for clients (1)

Deposits – workers’ compensation 185,027 186,331

Cash, cash equivalents, restricted cash and funds held for clients beginning of period $ 839,500 $ 786,699

Cash and cash equivalents $ 562,143 $ 467,921

Restricted cash 51,829 47,813

Other current assets - funds held for clients (1)

Deposits – workers’ compensation 179,014 208,236

Cash, cash equivalents, restricted cash and funds held for clients end of period $ 818,263 $ 723,970

____________________________________

(1) Funds held for clients represent amounts held on behalf of our Traditional Payroll solution customers that are restricted for the purpose of satisfying obligations to remit funds to client’s employees and various tax authorities.

(2) Beginning in the third quarter of 2022, we adjusted the presentation of our Consolidated Statements of Cash Flows to include changes in funds held for clients as a financing activity and to include funds held for clients in both the beginning and ending period amounts in our totals of cash, cash equivalents, restricted cash and funds held for clients.

Prior period amounts have not been adjusted to this presentation as the amounts are immaterial to our consolidated financial statements.

Previously, the changes in funds held for clients and the related client fund liabilities were presented within operating activities in our Consolidated Statements of Cash Flows.

Funds held for clients are held in a trust separate from our company funds and we do not use these funds held for clients for any corporate activity .

Please read Note 2.

“Accounting Policies,” for a discussion of our accounting policies for deposits – workers’ compensation and restricted cash.

Fair Value Measurements

5 unchanged sentences

• Level 3 - significant unobservable inputs

Insperity | 2022 Second Quarter Form 10-Q

Insperity | 2022 Third Quarter Form 10-Q

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1 unchanged sentence

The following table summarizes the levels of fair value measurements of our financial assets:

June 30, 2022 December 31, 2021

September 30, 2022 December 31, 2021

(in thousands) Total Level 1 Level 2 Total Level 1 Level 2

8 unchanged sentences

(in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value

June 30, 2022

September 30, 2022

Treasury bills $ 23,991 $ — $ ( 62 ) $ 23,929

3 unchanged sentences

Municipal bonds 26,017 — ( 8 ) 26,009

As of June 30, 2022, the contractual maturities of the marketable securities in our portfolio were less than one year.

As of September 30, 2022, the contractual maturities of the marketable securities in our portfolio were less than one year.

Fair Value of Other Financial Instruments

The carrying amounts of cash, cash equivalents, restricted cash, accounts receivable, deposits and accounts payable approximate their fair values due to the short-term maturities of these instruments.

As of June 30, 2022, the carrying value of borrowings under our revolving credit facility approximates fair value and was classified as Level 2 in the fair value hierarchy.

As of September 30, 2022, the carrying value of borrowings under our revolving credit facility approximates fair value and was classified as Level 2 in the fair value hierarchy.

Please read Note 5, “Long-Term Debt,” for additional information.

Long-Term Debt

We have a revolving credit facility (the “Facility”), which we amended in June 2022 to, among other things, increase our borrowing capacity from $ 500 million to $ 650 million.

We have a revolving credit facility (the “Facility”) with a borrowing capacity of up to $ 650 million.

The Facility may be further increased to $ 700 million based on the terms and subject to the conditions set forth in the agreement relating to the Facility (as amended, the “Credit Agreement”).

1 unchanged sentence

Our obligations under the Facility are secured by 65 % of the stock of our captive insurance subsidiary and are guaranteed by all of our domestic subsidiaries other than certain excluded subsidiaries.

At June 30, 2022, our outstanding balance on the Facility was $ 369.4 million, and we had an outstanding $ 1.0 million letter of credit issued under the Facility, resulting in an available borrowing capacity of $ 279.6 million.

Insperity | 2022 Second Quarter Form 10-Q

At September 30, 2022, our outstanding balance on the Facility was $ 369.4 million, and we had an outstanding $ 1.0 million letter of credit issued under the Facility, resulting in an available borrowing capacity of $ 279.6 million.

Insperity | 2022 Third Quarter Form 10-Q

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

5 unchanged sentences

We also pay an unused commitment fee on the average daily unused portion of the Facility at a rate of 0.25 % per year.

The average interest rate for the six month period ended June 30, 2022 was 2.2 %.

The average interest rate for the nine month period ended September 30, 2022 was 2.8 %.

Interest expense and unused commitment fees are recorded in other income (expense).

2 unchanged sentences

In addition, the Credit Agreement requires us to comply with financial covenants limiting our total funded debt, minimum interest coverage ratio, and maximum leverage ratio.

We were in compliance with all financial covenants under the Credit Agreement at June 30, 2022.

We were in compliance with all financial covenants under the Credit Agreement at September 30, 2022.

Stockholders' Equity

During the first six months of 2022, we repurchased or withheld an aggregate of 615,694 shares of our common stock, as described below.

During the first nine months of 2022, we repurchased or withheld an aggregate of 679,129 shares of our common stock, as described below.

Repurchase Program

1 unchanged sentence

The purchases may be made from time to time in the open market or directly from stockholders at prevailing market prices based on market conditions and other factors.

During the six months ended June 30, 2022, 517,083 shares were repurchased under the Repurchase Program.

As of June 30, 2022, we were authorized to repurchase an additional 1,186,545 shares under the Repurchase Program.

During the nine months ended September 30, 2022, 580,183 shares were repurchased under the Repurchase Program.

As of September 30, 2022, we were authorized to repurchase an additional 1,123,445 shares under the Repurchase Program.

Withheld Shares

During the six months ended June 30, 2022, we withheld 98,611 shares to satisfy tax withholding obligations for the vesting of long-term incentive and restricted stock awards.

During the nine months ended September 30, 2022, we withheld 98,946 shares to satisfy tax withholding obligations for the vesting of long-term incentive and restricted stock awards.

The Board declared quarterly dividends as follows:

2 unchanged sentences

Second quarter 0.52 0.45

During the six months ended June 30, 2022 and 2021, we paid dividends totaling $ 37.1 million and $ 32.8 million, respectively.

Insperity | 2022 Second Quarter Form 10-Q

Third quarter 0.52 0.45

During the nine months ended September 30, 2022 and 2021, we paid dividends totaling $ 56.9 million and $ 50.2 million, respectively.

Insperity | 2022 Third Quarter Form 10-Q

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

7 unchanged sentences

The following table summarizes the net income allocated to common shares and the basic and diluted shares used in the net income per share computations:

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

(in thousands) 2022 2021 2022 2021

12 unchanged sentences

While the results of litigation cannot be predicted with certainty, management believes the final outcome of such litigation will not have a material adverse effect on our financial position or results of operations.

Insperity | 2022 Second Quarter Form 10-Q

Insperity | 2022 Third Quarter Form 10-Q

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

1 unchanged sentence

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements