Other Balance Sheet Information (Notes)

9 Months Ended

Sep. 30, 2022

Disclosure Text Block Supplement [Abstract]

Supplemental Balance Sheet Disclosures [Text Block]

3. Other Balance Sheet Information

Cash, Cash Equivalents and Marketable Securities

The following table summarizes our cash and investments in cash equivalents and marketable securities held by investment managers and overnight investments:

	September 30, 2022						December 31, 2021
(in thousands)	Cash & Cash Equivalents		Marketable Securities		Total		Cash & Cash Equivalents		Marketable Securities		Total
Overnight holdings	$	503,228	$	—	$	503,228	$	490,154	$	—	$	490,154
Investment holdings	43,489		34,493		77,982		88,951		31,791		120,742
Cash in demand accounts	31,111		—		31,111		47,331		—		47,331
Outstanding checks	(15,685)		—		(15,685)		(50,624)		—		(50,624)
Total	$	562,143	$	34,493	$	596,636	$	575,812	$	31,791	$	607,603

Our cash and overnight holdings fluctuate based on the timing of clients’ payroll processing cycles. Our cash, cash equivalents and marketable securities at September 30, 2022 and December 31, 2021 included $321.9 million and $424.8 million, respectively, of funds associated with federal and state income tax withholdings, employment taxes, and other payroll deductions, as well as $35.8 million and $20.1 million, respectively, in client prepayments.

Cash, Cash Equivalents, Restricted Cash and Funds Held for Clients

The following table summarized our cash, cash equivalents, restricted cash and funds held for clients as reported in our Consolidated Statements of Cash Flows:

	Nine Months Ended September 30,
(in thousands)	2022			2021
Supplemental schedule of cash and cash equivalents, restricted cash and funds held for clients
Cash and cash equivalents	$	575,812		$	554,846
Restricted cash	46,929			45,522
Other current assets - funds held for clients(1)	31,732		(2)	—		(2)
Deposits – workers’ compensation	185,027			186,331
Cash, cash equivalents, restricted cash and funds held for clients beginning of period	$	839,500		$	786,699
Cash and cash equivalents	$	562,143		$	467,921
Restricted cash	51,829			47,813
Other current assets - funds held for clients(1)	25,277		(2)	—		(2)
Deposits – workers’ compensation	179,014			208,236
Cash, cash equivalents, restricted cash and funds held for clients end of period	$	818,263		$	723,970

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(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 client’s employees and various tax authorities.

(2)Beginning in the third quarter of 2022, we adjusted the presentation of our Consolidated Statements of Cash Flows to include changes in funds held for clients as a financing activity and to include funds held for clients in both the beginning and ending period amounts in our totals of cash, cash equivalents, restricted cash and funds held for clients. Prior period amounts have not been adjusted to this presentation as the amounts are immaterial to our consolidated financial statements. Previously, the changes in funds held for clients and the related client fund liabilities were presented within operating activities in our Consolidated Statements of Cash Flows. Funds held for clients are held in a trust separate from our company funds and we do not use these funds held for clients for any corporate activity.

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