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Description of Business and Significant Accounting Policies (Tables) | 12 Months Ended
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Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Cash Flow Statement Adjustments Due to Adoption of ASU 2016-18 | Effects on the cash flow statement due to adoption of ASU 2016-18 and effects due to reclassifications are summarized below:
| Year ended December 31,
| 2017 | 2016
(in millions) | As previously reported | Effect of ASU adoption | Reclassified amounts | As revised | As previously reported | Effect of ASU adoption | Reclassified amounts | As revised
Operating activities |  |  |  |  |  |  |  |
Changes in operating assets and liabilities: |  |  |  |  |  |  |  |
Accounts receivable | $ | — |  | $ | — |  | $ | (14 | ) | $ | (14 | ) | $ | — |  | $ | — |  | $ | — |  | $ | — |
Restricted cash, cash equivalents, and investments | (46 | ) | 46 |  | — |  | — |  | (42 | ) | 42 |  | — |  | — |
Unbilled revenue | — |  | — |  | (4 | ) | (4 | ) | — |  | — |  | (79 | ) | (79 | )
Prepaid income taxes | 37 |  | — |  | (37 | ) | — |  | (38 | ) | — |  | 38 |  | — |
Prepaid expenses | 1 |  | — |  | 27 |  | 28 |  | (2 | ) | — |  | (43 | ) | (45 | )
Workers' compensation collateral receivable | (7 | ) | — |  | 7 |  | — |  | (3 | ) | — |  | 3 |  | — |
Accounts payable | 22 |  | — |  | 1 |  | 23 |  | 9 |  | — |  | 2 |  | 11 |
Client deposits | — |  | — |  | (4 | ) | (4 | ) | — |  | — |  | (2 | ) | (2 | )
Accrued wages | 11 |  | — |  | 15 |  | 26 |  | 4 |  | — |  | 69 |  | 73 |
Accrued health insurance costs | — |  | — |  | 22 |  | 22 |  | — |  | — |  | 16 |  | 16 |
Accrued workers' compensation costs | 12 |  | — |  | (3 | ) | 9 |  | 55 |  | — |  | 5 |  | 60 |
Payroll taxes payable and other payroll withholdings | — |  | — |  | 294 |  | 294 |  | — |  | — |  | (175 | ) | (175 | )
Worksite employee related assets | (343 | ) | 307 |  | 36 |  | — |  | 92 |  | 1 |  | (93 | ) | — |
Worksite employee related liabilities | 342 |  | — |  | (342 | ) | — |  | (94 | ) | — |  | 94 |  | — |
Other assets | 4 |  | — |  | (15 | ) | (11 | ) | — |  | — |  | 174 |  | 174 |
Other liabilities | — |  | — |  | 17 |  | 17 |  | — |  | — |  | (9 | ) | (9 | )
Net cash provided by operating activities | 253 |  | 353 |  | — |  | 606 |  | 149 |  | 43 |  | — |  | 192 |
Financing activities |  |  |  |  |  |  |  |
Proceeds from issuance of common stock on exercised options | 11 |  | — |  | (11 | ) | — |  | 5 |  | — |  | (5 | ) | — |
Proceeds from issuance of common stock on employee stock purchase plan | 5 |  | — |  | (5 | ) | — |  | 4 |  | — |  | (4 | ) | — |
Proceeds from issuance of common stock | — |  | — |  | 16 |  | 16 |  | — |  | — |  | 9 |  | 9 |
Net increase in cash and cash equivalents | $ | 152 |  | $ | 353 |  | $ | — |  | $ | 505 |  | $ | 18 |  | $ | 43 |  | $ | — |  | $ | 61 |
Balance sheet reclassifications are summarized in the tables below:
|  | December 31, 2017
|  | As previously |  | Reclassification |  | As
(in millions) |  | Reported |  | Amounts |  | Revised
Assets |  |  |  |  |  |
Restricted cash, cash equivalents, and investments |  | $ | 15 |  |  | $ | 1,265 |  |  | $ | 1,280 |
Accounts receivable, net |  | — |  |  | 21 |  |  | 21 |
Unbilled revenue, net |  | — |  |  | 297 |  |  | 297 |
Prepaid income taxes |  | 5 |  |  | (5 | ) |  | — |
Prepaid expenses |  | 8 |  |  | 30 |  |  | 38 |
Other current assets |  | 2 |  |  | 17 |  |  | 19 |
Worksite employee related assets |  | 1,625 |  |  | (1,625 | ) |  | — |
Workers' compensation collateral receivable |  | 39 |  |  | (39 | ) |  | — |
Deferred and other long term income taxes |  | 2 |  |  | (2 | ) |  | — |
Other assets |  | 14 |  |  | 41 |  |  | 55 |
|  | December 31, 2017
|  | As previously |  | Reclassification |  | As
(in millions) |  | Reported |  | Amounts |  | Revised
Liabilities and stockholders' equity |  |  |  |  |  |
Accounts payable & other current liabilities |  | $ | 45 |  |  | $ | 14 |  |  | $ | 59 |
Accrued wages |  | 40 |  |  | 289 |  |  | 329 |
Client deposits |  | — |  |  | 52 |  |  | 52 |
Accrued health insurance costs, net |  | — |  |  | 151 |  |  | 151 |
Accrued workers' compensation costs, net |  | — |  |  | 67 |  |  | 67 |
Payroll tax liabilities and other payroll withholdings |  | — |  |  | 1,034 |  |  | 1,034 |
Insurance premiums and other payables |  | — |  |  | 25 |  |  | 25 |
Other current liabilities |  | 14 |  |  | (14 | ) |  | — |
Worksite employee related liabilities |  | 1,618 |  |  | (1,618 | ) |  | — |
Capitalized Contract Cost | The below table summarizes the amounts capitalized and amortized during the year ended December 31, 2018:
| Year Ended December 31, 2018
(in millions) | Capitalized | Amortized
Deferred commission costs | $ | 33 |  | $ | 2 |
Impact of adoption of ASC 606 | The impact from the adoption of ASC Topic 606 to our consolidated income statements and balance sheets is as follows:
| December 31, 2018
(in millions) | As reported | Balance Using Previous Standard | Increase (Decrease)
Balance sheet |  |  |
Assets |  |  |
Cash and cash equivalents | $ | 228 |  | $ | 235 |  | $ | (7 | )
Restricted cash, cash equivalents and investments, current | 942 |  | 935 |  | 7 |
Unbilled revenue, net | 304 |  | 311 |  | (7 | )
Prepaid expenses | 48 |  | 44 |  | 4 |
Other current assets | 59 |  | 49 |  | 10 |
Other assets | 78 |  | 67 |  | 11 |
Liabilities |  |  |
Accounts payable and other current liabilities | $ | 45 |  | $ | 48 |  | $ | 3 |
Deferred taxes | 68 |  | 67 |  | $ | (1 | )
Other non-current liabilities | 18 |  | 22 |  | $ | 4 |
Equity |  |  |
Accumulated deficit | $ | (266 | ) | $ | (290 | ) | $ | (24 | )
| Year Ended December 31, 2018
(in millions, except per share data) | As Reported | Balance Using Previous Standard | Increase (Decrease)
Income statement |  |  |
Revenue |  |  |
Professional service revenues | $ | 487 |  | $ | 485 |  | $ | 2 |
Total revenues | 3,503 |  | 3,501 |  | 2 |
Expense |  |  |
Sales and marketing expense |  |  |
Commissions expense | 22 |  | 53 |  | (31 | )
Total expense | 3,252 |  | 3,283 |  | (31 | )
Income before provision for income taxes | 241 |  | 208 |  | 33 |
Income tax expense | 49 |  | 40 |  | 9 |
Net income | $ | 192 |  | $ | 168 |  | $ | 24 |
Basic earnings per share | $ | 2.72 |  | $ | 2.40 |  | $ | 0.32 |
Diluted earnings per share | $ | 2.65 |  | $ | 2.34 |  | $ | 0.31 |
Effect of Adoption of ASU 2016-02 | On the date of adoption, the consolidated balance sheet will be adjusted by the following amounts:
(in millions) | Increase Under New Guidance
Recognizing right-of-use asset |
Long-term right-of-use assets | $ | 53 |
Recognizing lease liability and derecognizing deferred rent |
Accounts payable and other current liabilities | $ | 16 |
Other non-current liabilities | 37 |

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