Accrued Workers' Compensation Costs

3 Months Ended

Mar. 31, 2021

The following table summarizes the accrued workers’ compensation cost activity for the three months ended March 31, 2021 and 2020:


	Three Months Ended March 31,
(in millions)		2021		2020
Total accrued costs, beginning of period		$	205	$	214
Incurred
Current year		16		20
Prior years		(4)		(3)
Total incurred		12		17
Paid
Current year		(1)		(1)
Prior years		(11)		(13)
Total paid		(12)		(14)
Total accrued costs, end of period		$	205	$	217

The following summarizes workers' compensation liabilities on the condensed consolidated balance sheets:


(in millions)	March 31, 2021		December 31, 2020
Total accrued costs, end of period	$	205	$	205
Collateral paid to carriers and offset against accrued costs	(8)		(8)
Total accrued costs, net of carrier collateral offset	$	197	$	197

Payable in less than 1 year (net of collateral paid to carriers of $2 and $3 at March 31, 2021 and December 31, 2020, respectively)	$	59	$	59
Payable in more than 1 year (net of collateral paid to carriers of $6 and $5 at March 31, 2021 and December 31, 2020, respectively)	138		138
Total accrued costs, net of carrier collateral offset	$	197	$	197

Incurred claims related to prior years represent changes in estimates for ultimate losses on workers' compensation claims.

As of March 31, 2021 and December 31, 2020, we had $44 million and $45 million, respectively, of collateral held by insurance carriers of which $8 million for both periods was offset against accrued workers' compensation costs as

the agreements permit and are net settled of insurance obligations against collateral held.