ACCRUED WORKERS' COMPENSATION COSTS

6 Months Ended

Jun. 30, 2023

The following table summarizes the accrued workers’ compensation cost activity for the three and six months ended June 30, 2023 and 2022:


	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2023		2022		2023		2022
Total accrued costs, beginning of period	$	187	$	199	$	189	$	198
Incurred
Current year	18		16		34		33
Prior years	(17)		(15)		(23)		(20)
Total incurred	1		1		11		13
Paid
Current year	(1)		(2)		(2)		(2)
Prior years	(9)		(9)		(20)		(20)
Total paid	(10)		(11)		(22)		(22)
Total accrued costs, end of period	$	178	$	189	$	178	$	189

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


(in millions)	June 30, 2023		December 31, 2022
Total accrued costs, end of period	$	178	$	189
Collateral paid to carriers and offset against accrued costs	(5)		(7)
Total accrued costs, net of carrier collateral offset	$	173	$	182

Payable in less than 1 year (net of collateral paid to carriers of $1 and $2 at June 30, 2023 and December 31, 2022, respectively)	$	51	$	54
Payable in more than 1 year (net of collateral paid to carriers of $4 and $5 at June 30, 2023 and December 31, 2022, respectively)	122		128
Total accrued costs, net of carrier collateral offset	$	173	$	182

Incurred claims related to prior years represents changes in estimates for ultimate losses on workers' compensation claims. For the three and six months ended June 30, 2023, the favorable development is due to lower than expected reported claim frequency and severity for the more recent years.

As of June 30, 2023 and December 31, 2022, we had $43 million for both periods of collateral held by insurance carriers of which $5 million and $7 million at June 30, 2023 and December 31, 2022, respectively was offset against accrued workers' compensation costs as the agreements permit and are net settled of insurance obligations against collateral held.