Company: NSP
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001000753-25-000069
Chunk: 15

Company: INSPERITY, INC.
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 8
Chunk 15
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 time-based and performance-based restricted stock units (“RSUs”).

The following table summarizes the net income and the basic and diluted shares used in the earnings per share computations:Three Months Ended June 30,Six Months Ended June 30,(in millions)2025202420252024Net income (loss)$(5)$18 $46 $97 Weighted average common shares outstanding38 38 38 38 Adjusted weighted average common shares outstanding38 38 38 38 Potentially dilutive securities not included in weighted average shares calculation due to anti-dilutive effect1 — 1 — 

8.Commitments and Contingencies

LitigationWe are a defendant in various lawsuits and claims arising in the normal course of business. Management believes it has valid defenses in these cases and is defending them vigorously. 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.

9.Subsequent Events

On July 1, 2025, we granted at-risk performance-based stock units (“PSUs”) under the Insperity, Inc. Incentive Plan to our Chairman of the Board and Chief Executive Officer and to our President and Chief Operating Officer. These PSUs are market-based awards and vest at the end of a five-year period assuming continued employment and achievement of specified stock price targets for a sustained period. The fair value of the PSUs was determined through the use of the Monte Carlo simulation method. The compensation expense for the PSUs will be recognized on a straight-line basis over the vesting term beginning in the third quarter of 2025.On July 4, 2025, H.R.1, which is known as the “One Big Beautiful Bill Act,” was signed into federal law.  This law includes significant changes to federal tax law and other regulatory provisions that may impact us. ASC 740, “Income Taxes”, requires the effect of changes in tax rates and laws on deferred tax balances to be recognized in the period in which the 

Insperity | 2025 Second Quarter Form 10-Q18

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

legislation is enacted. We are currently evaluating the provisions of H.R.1 and the potential effects on our financial position, results of operations, and cash flows. As of the date of these financial statements, we have not completed our assessment, and therefore no adjustments have been made.