Company: NSP
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0001000753-25-000023
Chunk: 35

Company: INSPERITY, INC.
Filing Date: 2025-04-29
Form: 10-Q
Item: Item 7
Chunk 35
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$264 $260 2 %

Operating expenses for Q1 2025 increased 2% to $242 million compared to $237 million in Q1 2024. Operating expenses per WSEE per month for Q1 2025 increased 2% to $264 compared to $260 in Q1 2024.

Income Tax Expense

Three Months Ended March 31,20252024Effective income tax rate29%29%

For the three months ended March 31, 2025, our provision for income taxes differed from the U.S. statutory rate primarily due to state income taxes, non-deductible expenses and vesting of restricted and long-term incentive stock awards. During the first three months of 2025, we recognized additional income tax of $1 million related to the vesting of long-term incentive and restricted stock awards, primarily due to the vesting date price being below the grant date price.

Insperity | 2025 First Quarter Form 10-Q28

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Non-GAAP Financial Measures

Non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of the non-GAAP financial measures used to their most directly comparable GAAP financial measures as provided in the tables below.

Non-GAAP MeasureDefinitionBenefit of Non-GAAP MeasureNon-bonus payroll costNon-bonus payroll cost is a non-GAAP financial measure that excludes the impact of bonus payrolls paid to our WSEEs.Our management refers to non-bonus payroll cost in analyzing, reporting and forecasting our workers’ compensation costs.Bonus payroll cost varies from period to period, but has no direct impact to our ultimate workers’ compensation costs under the current program.We include these non-GAAP financial measures because we believe they are useful to investors in allowing for greater transparency related to the costs incurred under our current workers’ compensation program.Adjusted cash, cash equivalents and marketable securitiesExcludes funds associated with:•  federal and state income tax withholdings,•  employment taxes,•  other payroll deductions, and•  client prepayments.We believe that the exclusion of the identified items helps us reflect the fundamentals of our underlying business model and analyze results against our