Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2022

Activity and balances related to incurred but not paid workers' compensation claims

The following table provides the activity and balances related to incurred but not paid workers’ compensation claims:


	Three Months Ended March 31,
(in thousands)	2022		2021

Beginning balance, January 1,	$	239,623	$	240,761
Accrued claims	8,373		9,616
Present value discount, net of accretion	(1,309)		(442)
Paid claims	(14,370)		(13,246)
Ending balance	$	232,317	$	236,689

Current portion of accrued claims	$	49,429	$	46,353
Long-term portion of accrued claims	182,888		190,336
Total accrued claims	$	232,317	$	236,689

Disaggregation of Revenue [Table Text Block]

Revenue and Direct Cost Recognition

We enter into contracts with our customers for human resources services based on a stated rate and price in the contract. Our contracts generally establish pricing for a period of 12 months, and are generally cancellable at any time by either party with 30-days’ notice. Our performance obligations are satisfied as services are rendered each month. The term between invoicing and when our performance obligations are satisfied is not significant. Payment terms are typically due concurrently with the invoicing of our PEO services. We do not have significant financing components or significant payment terms.

Our revenue is generally recognized ratably over the payroll period as WSEEs perform their service at the client worksite. Customers are invoiced concurrently with each periodic payroll of its WSEEs. Revenues that have been recognized but unbilled of $655.3 million and $490.5 million at March 31, 2022 and December 31, 2021, respectively, are included in accounts receivable, net on our Condensed Consolidated Balance Sheets.

Pursuant to the “practical expedients” provided under Accounting Standards Update No 2014-09, we expense sales commissions when incurred because the terms of our contracts generally are cancellable by either party with a 30-day notice. These costs are recorded in commissions in our Consolidated Statements of Operations.