Company: NSP
Filing Date: 2025-02-11
Form Type: 10-K
Source: 0001000753-25-000008
Chunk: 120

Company: INSPERITY, INC.
Filing Date: 2025-02-11
Form: 10-K
Item: Item 16
Chunk 120
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 0% to 200% of the targeted amounts. A performance unit may be comprised of either a performance-based award or a market-based award. For performance-based awards, performance units have a vesting schedule of three years and compensation expense is recognized based on the number of common shares expected to be issued and the market price per common share on 

 F-262024   Form 10-K

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

the date of grant. Over the performance period, the number of shares expected to be issued is adjusted upward or downward based upon the probability of achievement of the performance targets. For market-based awards, performance units vest at the end of a three-year period assuming continued employment and achievement of market-based performance goals. The fair value of market-based performance awards was determined through the use of the Monte Carlo simulation method. The compensation expense for the LTIP awards is recognized on a straight-line basis over the vesting terms.The following is a summary of LTIP award activity, at 100% of targeted amount, for 2024:Number of Performance UnitsWeighted AverageGrant Date FairValue(in thousands)Non-vested — December 31, 2023227 $105.92 Granted91 97.70 Vested(60)98.44 Canceled(65)98.79 Non-vested — December 31, 2024193 $106.79 The determination of achievement results and corresponding vesting of the 2021 LTIP awards occurred in February 2024 resulting in recipients receiving approximately 101,000 shares of common stock with a fair value of $10 million. As of December 31, 2024, we estimate that approximately 60,000, 36,000 and 91,000 shares will vest with less than $1 million, $1 million and $5 million in unamortized compensation expense related to the 2022, 2023 and 2024 LTIP grants, respectively, and is expected to be recognized over a weighted average period of 18 months. Employee Stock Purchase PlanOur employee stock purchase plan (the “ESPP”) enables employees to purchase shares of Insperity stock at a 5% discount from the stock price at the end of the offering period. The ESPP is a non-compensatory plan under GAAP for stock-based compensation. As a result, no compensation expense is recognized in conjunction with this plan. Approximately 46,000, 39,000