Company: NSP
Filing Date: 2025-02-11
Form Type: 10-K
Source: 0001000753-25-000008
Chunk: 119

Company: INSPERITY, INC.
Filing Date: 2025-02-11
Form: 10-K
Item: Item 16
Chunk 119
---
 awards will continue to vest in the normal course. For a termination following a qualifying retirement, performance-based awards with completed or in-process performance periods are adjusted for achievement of the performance criteria, prorated through the date of termination and paid in the normal course, while performance-based awards for performance periods that have not started are forfeited. Stock-based compensation expense related to time-based and performance-based awards is accelerated over the requisite service period for employees who meet the requirements for continued vesting. Stock-based compensation expense and other disclosures for stock-based awards follows:Year Ended December 31,(in millions)202420232022Stock-based compensation expense recognized$61 $53 $50 Income tax benefit realized from stock-based compensation expense17 13 13 Time-Based Restricted Stock UnitsTime-based restricted stock units (“RSUs”), under equity plan accounting, are generally measured at fair value on the date of grant based on the number of shares granted, estimated forfeitures and the quoted price of the common stock. Such value is recognized as compensation expense over the corresponding vesting period, generally three years to five years for awards currently outstanding. However, for some RSUs currently outstanding, compensation expense is accelerated over the shortened requisite service period for employees who meet the requirements for continued vesting.The following is a summary of time-based RSU award activity for 2024:Total Awards(in thousands)Weighted AverageGrant Date FairValueNon-vested — December 31, 20231,038 $106.98 Granted630 98.86 Vested(506)101.80 Canceled(28)106.20 Non-vested — December 31, 20241,134 $104.96 Additional disclosures for time-based RSUs:Year Ended December 31,202420232022Weighted average grant date fair value of awards granted$98.86 $123.66 $90.06 Fair value of awards vested during the year (in millions)49 59 30 As of December 31, 2024, unrecognized compensation expense associated with the unvested RSUs outstanding was $59 million and is expected to be recognized over a weighted average period of 22 months.Long-Term Incentive Program AwardsEach performance unit represents the right to receive common shares at a future date based on our performance against specified targets. The ultimate number of shares issued and the related compensation cost recognized is based on a comparison of the final performance metrics to the specified targets, which can range from