ACCRUED WORKERS' COMPENSATION COSTS

3 Months Ended

Mar. 31, 2024

The following table summarizes the accrued workers’ compensation cost activity for the three months ended March 31, 2024 and 2023:


	Three Months Ended March 31,
(in millions)	2024		2023
Total accrued costs, beginning of period	$	175	$	189
Incurred
Current year	16		16
Prior years	(4)		(6)
Total incurred	12		10
Paid
Current year	(1)		(1)
Prior years	(11)		(11)
Total paid	(12)		(12)
Total accrued costs, end of period	$	175	$	187

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


(in millions)	March 31, 2024		December 31, 2023
Total accrued costs, end of period	$	175	$	175
Collateral paid to carriers and offset against accrued costs	(4)		(5)
Total accrued costs, net of carrier collateral offset	$	171	$	170

Payable in less than 1 year (net of collateral paid to carriers of $1 and $1 at March 31, 2024 and December 31, 2023, respectively)	$	51	$	50
Payable in more than 1 year (net of collateral paid to carriers of $3 and $4 at March 31, 2024 and December 31, 2023, respectively)	120		120
Total accrued costs, net of carrier collateral offset	$	171	$	170

Incurred claims related to prior years represent changes in estimates for ultimate losses on workers' compensation claims. For the three months ended March 31, 2024, the favorable development is due to lower than expected reported claim frequency and severity for the more recent years.

As of March 31, 2024 and December 31, 2023, we had $31 million and $32 million of collateral held by insurance carriers of which $4 million and $5 million, respectively, was offset against accrued workers' compensation costs as the agreements permit and are net settled of insurance obligations against collateral held.