Company: NSP
Filing Date: 2025-02-11
Form Type: 10-K
Source: 0001000753-25-000008
Chunk: 103

Company: INSPERITY, INC.
Filing Date: 2025-02-11
Form: 10-K
Item: Item 16
Chunk 103
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 and equipment, net consisted of the following:

 F-132024   Form 10-K

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in millions)December 31, 2024December 31, 2023Land$6 $6 Buildings and improvements225 217 Computer hardware and software145 145 Software development costs149 137 Furniture, fixtures and other56 53 Property and equipment, gross581 558 Accumulated depreciation and amortization(389)(361)Property and equipment, net$192 $197 The estimated useful lives of property and equipment for purposes of computing depreciation are as follows:Useful LifeBuildings and improvements4—30yearsComputer hardware and software2—5yearsSoftware development costs3—5yearsFurniture, fixtures and other5—7yearsSoftware development costs relate primarily to software code development, systems integration and testing of our proprietary professional employer information systems and are accounted for in accordance with ASC 350-40, Internal Use Software. Capitalized software development costs are amortized using the straight-line method over the estimated useful lives of the software, generally three years. We recognized $13 million, $14 million and $13 million in amortization of capitalized software development costs in 2024, 2023 and 2022, respectively. Unamortized software development costs were $32 million and $33 million at December 31, 2024 and 2023, respectively. We periodically evaluate our long-lived assets for impairment in accordance with ASC 360-10, Property, Plant, and Equipment. ASC 360-10 requires that an impairment loss be recognized for assets to be disposed of or held-for-use when the carrying amount of an asset is deemed to not be recoverable. If events or circumstances were to indicate that any of our long-lived assets might be impaired, we would assess recoverability based on the estimated undiscounted future cash flows to be generated from the applicable asset or asset group. In addition, we may record an impairment loss to the extent that the carrying value of the asset exceeded the fair value of the asset. Fair value is generally determined using an estimate of discounted future net cash flows from operating activities or upon disposal of the asset. Cloud Computing ArrangementsWe incur costs to implement cloud computing arrangements that are hosted by third-party vendors. SaaS implementation costs associated with cloud computing arrangements are capitalized when incurred during the application development phase. The capitalized costs are recorded in our short-term