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ACCRUED WORKERS' COMPENSATION COSTS
 12 Months Ended
Dec. 31, 2023
Insurance [Abstract]  
ACCRUED WORKERS' COMPENSATION COSTS ACCRUED WORKERS' COMPENSATION COSTS
The following table summarizes the accrued workers’ compensation cost activity for the years ended December 31, 2023, 2022 and 2021:
Year Ended December 31,
(in millions)202320222021
Total accrued costs, beginning of year$189 $198 $205 
Incurred
Current year66 68 66 
Prior years(36)(32)(23)
Total incurred30 36 43 
Paid
Current year(10)(10)(10)
Prior years(34)(35)(40)
Total paid(44)(45)(50)
Total accrued costs, end of year$175 $189 $198 
The following tables summarize workers' compensation liabilities on the consolidated balance sheets:
(in millions)December 31, 2023December 31, 2022
Total accrued costs, end of year$175 $189 
Collateral paid to carriers and offset against accrued costs(5)(7)
Total accrued costs, net of carrier collateral offset$170 $182 
Payable in less than 1 year
(net of collateral paid to carriers of $1 and $2 as of December 31, 2023 and 2022, respectively)
$50 54
Payable in more than 1 year
(net of collateral paid to carriers of $4 and $5 as of December 31, 2023 and 2022, respectively)
120 128 
Total accrued costs, net of carrier collateral offset$170 $182 
Incurred claims related to prior years represent changes in estimates for ultimate losses on workers' compensation claims. For the years ended December 31, 2023, 2022 and 2021, the favorable development is due to lower than expected reported claim frequency and severity for the more recent years.
As of December 31, 2023 and 2022, we had $32 million and $43 million of collateral held by insurance carriers of which $5 million and $7 million, respectively, was offset against accrued workers' compensation costs as the agreements permit and are net settled of insurance obligations against collateral held.