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

Company: INSPERITY, INC.
Filing Date: 2025-04-29
Form: 10-Q
Item: Item 8
Chunk 10
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, cash equivalents and marketable securities at March 31, 2025 and December 31, 2024 included $404 million and $830 million, respectively, of funds associated with federal and state income tax withholdings, employment taxes, and other payroll deductions, as well as $40 million and $91 million, respectively, in client prepayments. In addition, $440 million of client employee retention tax credits received on their behalf from the Internal Revenue Service during the fourth quarter of 2024 were distributed to clients in early 2025.

Insperity | 2025 First Quarter Form 10-Q14

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Cash, Cash Equivalents, Restricted Cash, Funds Held for Clients, and Deposits - Workers’ CompensationThe following table summarizes our cash, cash equivalents, restricted cash, funds held for clients, and deposits - workers’ compensation as reported in our Consolidated Statements of Cash Flows:Three Months Ended March 31,(in millions)20252024Supplemental schedule of cash and cash equivalents, restricted cash, funds held for clients, and deposits - workers’ compensationCash and cash equivalents$1,039 $693 Restricted cash69 57 Other current assets – funds held for clients(1)58 87 Deposits – workers’ compensation178 198 Cash, cash equivalents, restricted cash, funds held for clients, and deposits - workers’ compensation beginning of period$1,344 $1,035 Cash and cash equivalents$551 $667 Restricted cash74 61 Other current assets – funds held for clients(1)50 46 Deposits – workers’ compensation171 204 Cash, cash equivalents, restricted cash, funds held for clients, and deposits - workers’ compensation end of period$846 $978  ____________________________________(1)Funds held for clients represent amounts held on behalf of our Traditional Payroll Solution customers that are restricted for the purpose of satisfying obligations to remit funds to clients’ employees and various tax authorities.

Please read Note 2. “Accounting Policies,” for a discussion of our accounting policies for deposits – workers’ compensation and restricted cash.  

4.Fair Value MeasurementsWe account for our financial assets in accordance with ASC 820, Fair Value Measurement. This standard defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. The fair value measurement disclosures are grouped into three levels based on