What changed in this filing

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Item 1. Financial Statements

2025-04-29 compared with 2024-10-31 · 87 added, 103 removed, 303 unchanged (39% of the section changed)

2 unchanged sentences

(in millions)

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

Cash and cash equivalents $ 551 $ 1,039

3 unchanged sentences

Prepaid insurance and related assets 56 25

Income taxes receivable 8 —

Funds held for clients and other current assets

31 unchanged sentences

See accompanying notes.

Insperity | 2024 Third Quarter Form 10-Q

Insperity | 2025 First Quarter Form 10-Q

FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS OF INCOME

Three Months Ended

September 30, Nine Months Ended

September 30,

Three Months Ended March 31,

(in millions, except per share amounts)

$ 1,863 $ 1,802

$ 1,561 $ 1,551 $ 4,968 $ 4,906

Payroll taxes, benefits and workers’ compensation costs

1,332 1,293 4,134 4,091

Gross profit 310 345

17 unchanged sentences

See accompanying notes.

Insperity | 2024 Third Quarter Form 10-Q

Insperity | 2025 First Quarter Form 10-Q

FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine Months Ended September 30,

Three Months Ended March 31,

(in millions)

23 unchanged sentences

Proceeds from maturities 6 6

Proceeds from dispositions — 28

Property and equipment purchases ( 6 ) ( 5 )

5 unchanged sentences

Net cash used in financing activities ( 49 ) ( 83 )

Net decrease in cash, cash equivalents, restricted cash and funds held for clients ( 287 ) ( 57 )

Cash, cash equivalents, restricted cash and funds held for clients beginning of period 1,035 1,014

Cash, cash equivalents, restricted cash and funds held for clients end of period $ 748 $ 957

Net decrease in cash, cash equivalents, restricted cash, funds held for clients, and deposits – workers’ compensation ( 498 ) ( 57 )

Cash, cash equivalents, restricted cash, funds held for clients, and deposits - workers’ compensation beginning of period 1,344 1,035

Cash, cash equivalents, restricted cash, funds held for clients, and deposits - workers’ compensation end of period $ 846 $ 978

Supplemental cash flow information:

ROU assets obtained in exchange for lease obligations $ 6 $ 4

Excise tax liability accrued for common stock repurchases — 1

See accompanying notes.

Insperity | 2024 Third Quarter Form 10-Q

Insperity | 2025 First Quarter Form 10-Q

FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

For the Nine Months Ended September 30, 2024 and 2023

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

(in millions) Shares Amount

Balance at December 31, 2023 55 $ 1 $ 185 $ ( 831 ) $ 739 $ 94

Purchase of treasury stock, at cost — — — ( 52 ) — ( 52 )

Issuance of equity-based incentive awards and dividend equivalents — — ( 24 ) 27 ( 3 ) —

Stock-based compensation expense — — 46 1 — 47

Other — — 1 2 — 3

Dividends paid — — — — ( 67 ) ( 67 )

Net income — — — — 100 100

Balance at September 30, 2024 55 $ 1 $ 208 $ ( 853 ) $ 769 $ 125

Balance at December 31, 2022 55 $ 1 $ 151 $ ( 726 ) $ 655 $ 81

Purchase of treasury stock, at cost — — — ( 132 ) — ( 132 )

Issuance of equity-based incentive awards and dividend equivalents — — ( 21 ) 25 ( 4 ) —

Stock-based compensation expense — — 41 1 — 42

Other — — 2 1 — 3

Dividends paid — — — — ( 63 ) ( 63 )

Net income — — — — 152 152

Balance at September 30, 2023 55 $ 1 $ 173 $ ( 831 ) $ 740 $ 83

Insperity | 2024 Third Quarter Form 10-Q

FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Continued)

For the Three Months Ended September 30, 2024 and 2023

For the Three Months Ended March 31, 2025 and 2024

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

1 unchanged sentence

Shares Amount

Balance at June 30, 2024 55 $ 1 $ 191 $ ( 838 ) $ 788 $ 142

Balance at December 31, 2024 55 $ 1 $ 222 $ ( 864 ) $ 738 $ 97

Purchase of treasury stock, at cost — — — ( 19 ) — ( 19 )

4 unchanged sentences

Net income — — — — 51 51

Balance at September 30, 2024 55 $ 1 $ 208 $ ( 853 ) $ 769 $ 125

Balance at June 30, 2023 55 $ 1 $ 158 $ ( 745 ) $ 717 $ 131

Balance at March 31, 2025 55 $ 1 $ 209 $ ( 855 ) $ 764 $ 119

Balance at December 31, 2023 55 $ 1 $ 185 $ ( 831 ) $ 739 $ 94

Purchase of treasury stock, at cost — — — ( 23 ) — ( 23 )

4 unchanged sentences

Net income — — — — 79 79

Balance at September 30, 2023 55 $ 1 $ 173 $ ( 831 ) $ 740 $ 83

Balance at March 31, 2024 55 $ 1 $ 172 $ ( 826 ) $ 793 $ 140

See accompanying notes.

Insperity | 2024 Third Quarter Form 10-Q

Insperity | 2025 First Quarter Form 10-Q

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

13 unchanged sentences

Our Condensed Consolidated Balance Sheet at December 31, 2024 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 September 30, 2024 and our Consolidated Statements of Income for the three and nine month periods ended September 30, 2024 and 2023, our Consolidated Statements of Cash Flows for the nine month periods ended September 30, 2024 and 2023 and our Consolidated Statements of Stockholders' Equity for the three and nine month periods ended September 30, 2024 and 2023, have been prepared by us without audit.

Our Condensed Consolidated Balance Sheet at March 31, 2025 and our Consolidated Statements of Income for the three month periods ended March 31, 2025 and 2024, our Consolidated Statements of Cash Flows for the three month periods ended March 31, 2025 and 2024 and our Consolidated Statements of Stockholders' Equity for the three months ended March 31, 2025 and 2024, 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.

10 unchanged sentences

(2) estimated completion rates based upon recent claim development

Insperity | 2024 Third Quarter Form 10-Q

Insperity | 2025 First Quarter Form 10-Q

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

6 unchanged sentences

The terms of the arrangement require us to maintain an accumulated cash surplus in the plan of $ 9 million, which is reported as long-term prepaid health insurance.

In addition, United requires a deposit equal to approximately one day of claims funding activity, which was $ 7 million at September 30, 2024, and is included in deposits - health insurance as a long-term asset on our Condensed Consolidated Balance Sheets.

As of September 30, 2024, Plan Costs were less than the net premiums paid and owed to United by $ 28 million.

As this amount is in excess of the agreed-upon $ 9 million surplus maintenance level, the $ 19 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 September 30, 2024 were $ 39 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 2024 included a decrease of $ 32 million for changes in estimated run-off related to prior periods, net of Individual Claims Limit.

Our benefits costs incurred in the first nine months of 2023 included a decrease of $ 14 million for changes in estimated run-off related to prior periods, net of Individual Claims Limit.

In addition, United requires a deposit equal to approximately one day of claims funding activity, which was $ 7 million at March 31, 2025, and is included in deposits - health insurance as a long-term asset on our Condensed Consolidated Balance Sheets.

As of March 31, 2025, Plan Costs were less than the net premiums paid and owed to United by $ 52 million, which is $ 43 million in excess of our agreed-upon $ 9 million surplus maintenance level.

The $ 43 million difference is therefore reflected as a current asset and $ 9 million is reflected as a long-term asset on our Condensed Consolidated Balance Sheet at March 31, 2025.

In addition, the premiums owed to United at March 31, 2025, were $ 64 million, which is included in accrued health insurance costs, a current liability, on our Condensed Consolidated Balance Sheet.

Our benefits costs incurred in the 2025 period included an increase of $ 12 million for changes in estimated run-off related to prior periods, net of Individual Claims Limit.

Our benefits costs incurred in the first three months of 2024 included a decrease of $ 18 million for changes in estimated run-off related to prior periods, net of Individual Claims Limit.

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 nine months ended September 30, 2024 and 2023, we reduced accrued workers’ compensation costs by $ 25 million and $ 26 million, respectively, for changes in estimated losses related to prior periods.

During the three months ended March 31, 2025 and 2024, we reduced accrued workers’ compensation costs by $ 7 million and $ 9 million, respectively, for changes in estimated losses related to prior 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 2024 period was 4.3 % and in the 2023 period was 4.2 %) and are accreted over the estimated claim payment period and included as a component of direct costs in our Consolidated Statements of Income.

Insperity | 2024 Third Quarter Form 10-Q

Treasury rates that correspond with the weighted average estimated claim payout period (the average discount rate utilized was 4.0 % in the 2025 period and 4.5 % in the 2024 period) and are accreted over the estimated claim payment period and included as a component of direct costs in our Consolidated Statements of Income.

Insperity | 2025 First 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:

Nine Months Ended September 30,

Three Months Ended March 31,

(in millions)

Beginning balance, January 1, $ 204 $ 220

Accrued claims 48 44

Accrued claims, net 16 14

Present value discount, net of accretion ( 3 ) ( 3 )

4 unchanged sentences

Total accrued claims $ 196 $ 215

The current portion of accrued workers’ compensation costs on our Condensed Consolidated Balance Sheets at September 30, 2024 and 2023 includes $ 3 million and $ 4 million, respectively, of workers’ compensation administrative fees.

The undiscounted accrued workers’ compensation costs were $ 242 million as of September 30, 2024 and $ 250 million as of September 30, 2023.

The current portion of accrued workers’ compensation costs on our Condensed Consolidated Balance Sheets at March 31, 2025 and 2024 includes $ 2 million and $ 4 million, respectively, of workers’ compensation administrative fees.

The undiscounted accrued workers’ compensation costs were $ 234 million as of March 31, 2025 and $ 247 million as of March 31, 2024.

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”).

The level of claim funds is primarily based upon anticipated WSEE payroll levels and expected workers’ compensation loss rates, as determined by the insurance carrier.

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.

At September 30, 2024, we had restricted cash of $ 67 million and deposits – workers’ compensation of $ 175 million, of which $ 233 million was held in a trust account.

Monies funded into the program for incurred claims expected to be paid within one year are primarily held as cash and money market funds (cash equivalents) and 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.

At March 31, 2025, we had restricted cash of $ 74 million and deposits – workers’ compensation of $ 171 million, of which $ 242 million was held in trust bank accounts.

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.

Revenue and Direct Cost Recognition

We enter into contracts with our customers for human resources services based on a stated rate and price in the contract.

6 unchanged sentences

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

Revenues that have been recognized but not invoiced represent unbilled accounts receivable of $ 754 million and $ 669 million at September 30, 2024 and December 31, 2023, respectively, and are included in accounts receivable, net on our Condensed Consolidated Balance Sheets.

Revenues that have been recognized but not invoiced represent unbilled accounts receivable of $ 819 million and $ 810 million at March 31, 2025 and December 31, 2024, respectively, and are included in accounts receivable, net on our Condensed Consolidated Balance Sheets.

Pursuant to the “practical expedients” provided under ASC 340-40, Other Assets and Deferred Costs - Contracts with Customers , we expense sales commissions when incurred because the terms of our contracts are cancellable by either party with a 30-day notice.

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

Insperity | 2024 Third Quarter Form 10-Q

Insperity | 2025 First 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 September 30, Nine Months Ended September 30,

(in millions) 2024 2023 % Change 2024 2023 % Change

Three Months Ended March 31,

(in millions)

2025 2024 % Change

Northeast $ 526 $ 509 3 %

13 unchanged sentences

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

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

Three Months Ended March 31,

(in millions) 2025 2024

2 unchanged sentences

Revenues $ 1,863 $ 1,802

Consistent with our revenue recognition policy, our direct costs do not include the payroll cost of our WSEEs.

Our direct costs associated with our revenue generating activities are primarily comprised of all other costs related to our WSEEs, such as the employer portion of payroll-related taxes, employee benefit plan costs and workers’ compensation insurance costs.

Segment Reporting

ASC 280, Segment Reporting establishes standards for reporting information about operating segments on a basis consistent with our internal organizational structure as well as information about geographical areas and business segments.

Based on management’s assessment, we determined that we have only one operating segment and therefore one reportable segment, HR Solutions, as defined by ASC 280.

The accounting policies of the HR Solutions segment are the same as those described in the summary of significant accounting policies.

The measure of segment assets is reported on our Condensed Consolidated Balance Sheets as total assets, and the chief operating decision maker (“CODM”) assesses performance and decides how to allocate resources based on net income as reported on our Consolidated Statements of Income.

The CODM reviews revenues and expenses at the consolidated level as disclosed in our Consolidated Statements of Income and uses net income to evaluate income generated from segment assets (return on assets) in deciding whether to reinvest profits into our HR Solutions segment or into other areas of the entity, such as for acquisitions or to pay dividends.

Insperity | 2025 First Quarter Form 10-Q

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Net income is also used to monitor budget versus actual results and in competitive analysis by benchmarking to our competitors.

The competitive analysis and the monitoring of budgeted versus actual results are used in assessing the segment’s performance and in establishing management’s compensation.

Other Balance Sheet Information

1 unchanged sentence

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

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

(in millions)

6 unchanged sentences

Total $ 551 $ 17 $ 568 $ 1,039 $ 16 $ 1,055

Insperity | 2024 Third Quarter Form 10-Q

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

Our cash, cash equivalents and marketable securities at September 30, 2024 and December 31, 2023 included $ 255 million and $ 510 million, respectively, of funds associated with federal and state income tax withholdings, employment taxes, and other payroll deductions, as well as $ 19 million and $ 28 million, respectively, in client prepayments.

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

Our cash, cash equivalents and marketable securities at March 31, 2025 and December 31, 2024 included $ 404 million and $ 830 million, respectively, of funds associated with federal and state income tax withholdings, employment taxes, and other payroll deductions, as well as $ 40 million and $ 91 million, respectively, in client prepayments.

In addition, $ 440 million of client employee retention tax credits received on their behalf from the Internal Revenue Service during the fourth quarter of 2024 were distributed to clients in early 2025.

Insperity | 2025 First Quarter Form 10-Q

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Cash, Cash Equivalents, Restricted Cash, Funds Held for Clients, and Deposits - Workers’ Compensation

The following table summarizes our cash, cash equivalents, restricted cash, funds held for clients, and deposits - workers’ compensation as reported in our Consolidated Statements of Cash Flows:

Nine Months Ended September 30,

Three Months Ended March 31,

(in millions)

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

Supplemental schedule of cash and cash equivalents, restricted cash, funds held for clients, and deposits - workers’ compensation

Cash and cash equivalents $ 1,039 $ 693

2 unchanged sentences

Deposits – workers’ compensation 178 198

Cash, cash equivalents, restricted cash and funds held for clients beginning of period $ 1,035 $ 1,014

Cash, cash equivalents, restricted cash, funds held for clients, and deposits - workers’ compensation beginning of period $ 1,344 $ 1,035

Cash and cash equivalents $ 551 $ 667

2 unchanged sentences

Deposits – workers’ compensation 171 204

Cash, cash equivalents, restricted cash and funds held for clients end of period $ 748 $ 957

Cash, cash equivalents, restricted cash, funds held for clients, and deposits - workers’ compensation end of period $ 846 $ 978

____________________________________

9 unchanged sentences

• Level 3 - significant unobservable inputs

Insperity | 2024 Third Quarter Form 10-Q

Insperity | 2025 First 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:

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

(in millions)

Total Level 1 Level 2 Total Level 1 Level 2

Total Level 1 Total Level 1

Money market funds $ 568 $ 568 $ 1,048 $ 1,048

6 unchanged sentences

“ Other Balance Sheet Information ,” for additional information.

During Q3 2024, we transferred $ 158 million of claim funds previously held with Chubb to a trust account and those funds were subsequently invested in money market funds.

Both before and after the transfer, these funds were included in restricted cash and deposits - workers’ compensation on our Condensed Consolidated Balance Sheet.

Our valuation techniques used to measure fair value for these securities during the period consisted primarily of third-party pricing services that utilized actual market data such as trades of comparable bond issues, broker/dealer quotations for the same or similar investments in active markets and other observable inputs.

2 unchanged sentences

Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value

September 30, 2024

March 31, 2025

Treasury bills $ 17 $ — $ — $ 17

1 unchanged sentence

Treasury bills $ 16 $ — $ — $ 16

As of September 30, 2024, the contractual maturities of all marketable securities in our portfolio were less than one year.

As of March 31, 2025, the contractual maturities of all 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 September 30, 2024, 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 March 31, 2025, 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.

4 unchanged sentences

Our obligations under the Facility are secured by 100 % of the stock of our captive insurance subsidiary and are guaranteed by all of our subsidiaries other than our captive insurance subsidiary and certain other excluded subsidiaries.

At September 30, 2024, our outstanding balance on the Facility was $ 369 million, and we had an outstanding $ 1 million letter of credit issued under the Facility, resulting in an available borrowing capacity of $ 280 million.

Insperity | 2024 Third Quarter Form 10-Q

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

At March 31, 2025, our outstanding balance on the Facility was $ 369 million, and we had an outstanding $ 1 million letter of credit issued under the Facility, resulting in an available borrowing capacity of $ 280 million.

The Facility matures on June 30, 2027 .

1 unchanged sentence

Adjusted Term SOFR is a forward-looking term rate based on the secured overnight financing rate plus a spread adjustment, which ranges from 0.10 % to 0.25 % depending on the interest period and type of loan.

Depending on our leverage ratio, the applicable margin varies (1) in the case of SOFR loans, from 1.50 % to 2.25 % and (2) in the case of alternate base rate loans, from 0.00 % to 0.50 %.

Depending on our leverage ratio, the applicable margin

Insperity | 2025 First Quarter Form 10-Q

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

varies (1) in the case of SOFR loans, from 1.50 % to 2.25 % and (2) in the case of alternate base rate loans, from 0.00 % to 0.50 %.

The alternate base rate is the highest of (1) the prime rate most recently published in The Wall Street Journal, (2) the federal funds rate plus 0.50 %;

1 unchanged sentence

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 nine month period ended September 30, 2024 was 7.2 %.

The average interest rate for the three month period ended March 31, 2025 was 6.2 %.

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 September 30, 2024.

Effective March 31, 2025, we amended the Facility to exclude dividends from the interest coverage ratio financial covenant.

We were in compliance with all financial covenants under the Credit Agreement at March 31, 2025.

Stockholders' Equity

During the nine months ended September 30, 2024, we repurchased or withheld an aggregate of 551,264 shares of our common stock, as described below.

During the three months ended March 31, 2025, we repurchased or withheld an aggregate of 224,065 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 nine months ended September 30, 2024, 371,003 shares were repurchased under the Repurchase Program.

As of September 30, 2024, we were authorized to repurchase an additional 1,598,559 shares under the Repurchase Program.

During the three months ended March 31, 2025, 45,000 shares were repurchased under the Repurchase Program.

As of March 31, 2025, we were authorized to repurchase an additional 1,407,764 shares under the Repurchase Program.

Withheld Shares

During the nine months ended September 30, 2024, we withheld 180,261 shares to satisfy tax withholding obligations for the vesting of long-term incentive and restricted stock unit awards.

During the three months ended March 31, 2025, we withheld 179,065 shares to satisfy tax withholding obligations for the vesting of long-term incentive and restricted stock unit awards.

The Board declared and paid quarterly dividends as follows:

1 unchanged sentence

First quarter $ 0.60 $ 0.57

Second quarter 0.60 0.57

Third quarter 0.60 0.57

During the nine months ended September 30, 2024 and 2023, we declared and paid dividends totaling $ 67 million and $ 63 million, respectively.

During the three months ended March 31, 2025 and 2024, we declared and paid dividends totaling $ 23 million and $ 21 million, respectively.

Earnings Per Share

Basic EPS is computed by dividing net income by the weighted average number of common shares outstanding during the period.

Diluted EPS is computed by dividing net income by the weighted average number of common shares outstanding during the period, plus the dilutive effect of time-vested and performance-based restricted stock units (“RSUs”).

Insperity | 2024 Third Quarter Form 10-Q

Diluted EPS is computed by dividing net income by the weighted average number of common shares outstanding during the period, plus the dilutive effect of time-based and performance-based restricted stock units (“RSUs”).

Insperity | 2025 First Quarter Form 10-Q

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

Three Months Ended

September 30, Nine Months Ended

September 30,

Three Months Ended March 31,

(in millions)

1 unchanged sentence

Weighted average common shares outstanding 38 37

Incremental shares from assumed time-vested and performance-based RSU awards — — — —

Incremental shares from assumed time-based and performance-based RSU awards — 1

Adjusted weighted average common shares outstanding 38 38

An insignificant number of shares of time-vested and performance-based RSU awards were excluded from the calculation of diluted earnings per share due to anti-dilution during each of the three and nine month periods ended September 30, 2024 and 2023, respectively.

An immaterial number of shares of time-based and performance-based RSU awards were excluded from the calculation of diluted earnings per share due to such shares being anti-dilutive during the three months ended March 31, 2025 and 2024, respectively.

Commitments and Contingencies

2 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 | 2024 Third Quarter Form 10-Q

Insperity | 2025 First 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