Company: NSP
Filing Date: 2025-02-11
Form Type: 10-K
Source: 0001000753-25-000008
Chunk: 72

Company: INSPERITY, INC.
Filing Date: 2025-02-11
Form: 10-K
Item: Item 7
Chunk 72
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Following is a reconciliation of net income (GAAP) to adjusted net income (non-GAAP):

Year Ended December 31,(in millions)202420232022Net income$91 $171 $179 Non-GAAP adjustments:Stock-based compensation61 53 50 Tax effect(17)(12)(13)Total non-GAAP adjustments, net44 41 37 Adjusted net income$135 $212 $216 Net income % change year over year(47)%(4)%44 %Adjusted net income % change year over year(36)%(2)%40 %

  522024   Form 10-K

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Following is a reconciliation of diluted EPS (GAAP) to adjusted EPS (non-GAAP):

Year Ended December 31,(amounts per share)202420232022Diluted EPS$2.42 $4.47 $4.64 Non-GAAP adjustments:Stock-based compensation1.61 1.38 1.30 Tax effect(0.45)(0.33)(0.35)Total non-GAAP adjustments, net1.16 1.05 0.95 Adjusted EPS$3.58 $5.52 $5.59 Diluted EPS % change year over year(46)%(4)%46 %Adjusted EPS % change year over year(35)%(1)%42 %

Liquidity and Capital Resources

We periodically evaluate our liquidity requirements, capital needs and availability of resources in view of, among other things, our expansion plans, stock repurchases, potential acquisitions, debt service requirements and other operating cash needs. To meet short-term liquidity requirements, which are primarily the payment of direct costs and operating expenses, we rely primarily on cash from operations. Longer-term projects, large stock repurchases or significant acquisitions may be financed with public or private debt or equity. We have a revolving credit facility (“Facility”) with a syndicate of financial institutions with a current borrowing capacity of $650 million. The Facility is available for working capital and general corporate purposes, including acquisitions and stock repurchases. We have in the past sought, and may in the future seek, to raise additional capital or take other steps to increase or manage our liquidity and capital resources. 

We had $1.1 billion in cash, cash equivalents and marketable securities at December 31, 202