Company: NSP
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001000753-25-000107
Chunk: 9

Company: INSPERITY, INC.
Filing Date: 2025-11-04
Form: 10-Q
Item: Item 8
Chunk 9
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 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 | 2025 Third Quarter Form 10-Q13

         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Our revenue for our PEO HR 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)20252024% Change20252024% ChangeNortheast$440 $419 5 %$1,418 $1,365 4 %Southeast236 223 6 %731 694 5 %Central295 286 3 %931 902 3 %Southwest304 294 3 %962 938 3 %West333 321 4 %1,049 1,016 3 %1,608 1,543 4 %5,091 4,915 4 %Other revenue15 18 (17)%53 53 — Total revenue$1,623 $1,561 4 %$5,144 $4,968 4 %Our PEO HR Solutions revenues are primarily derived from our gross billings, which are based on (1) the payroll cost of our WSEEs; and (2) a markup computed as a percentage of the payroll cost. The gross billings are invoiced concurrently with each periodic payroll of our WSEEs. Revenues, which exclude the payroll cost component of gross billings and therefore consist solely of the markup, are recognized ratably over the payroll period as WSEEs perform their service at the client worksite.In determining the pricing of the markup component of our gross billings, we take into consideration our estimates of the costs directly associated with our WSEEs, including payroll taxes, benefits and workers’ compensation costs, plus an acceptable gross profit margin. As a result, our operating results are significantly impacted by our ability to accurately estimate our direct costs relative to the revenues derived from the markup component of our gross billings.Revenues are comprised of gross billings