Company: NSP
Filing Date: 2025-02-11
Form Type: 10-K
Source: 0001000753-25-000008
Chunk: 115

Company: INSPERITY, INC.
Filing Date: 2025-02-11
Form: 10-K
Item: Item 16
Chunk 115
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 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%. 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%; and (3) the Adjusted Term SOFR rate plus 2.00%. 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 2024 was 7.1%. Interest expense and unused commitment fees are recorded in other income (expense). The Facility contains both affirmative and negative covenants that we believe are customary for arrangements of this nature. Covenants include, but are not limited to, limitations on our ability to incur additional indebtedness, sell material assets, retire, redeem or otherwise reacquire our capital stock, acquire the capital stock or assets of another business, make investments and pay dividends. 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 December 31, 2024.

 F-222024   Form 10-K

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

7.Income TaxesDeferred taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities used for financial reporting purposes and the amounts used for income tax purposes. Significant components of the net deferred tax assets as reflected on the Consolidated Balance Sheets are as follows:December 31,(in millions)20242023 Deferred tax liabilitiesPrepaid assets$(4)$(4)Depreciation(5)(6)Tenant improvements(3)(3)Right-of-use leased assets(19)(17)Intangibles(3)(3)Total deferred tax liabilities(34)(33)Deferred tax assetsAccrued incentive compensation12 9 Workers’ compensation accruals4 5 Accrued rent2 2 Software development costs13 4 Stock-based compensation15 14 Operating lease liabilities22 20 Other1 — Total deferred tax assets69 54 Valuation allowance(1)(1)Total net deferred tax