Accrued Workers' Compensation Cost

6 Months Ended

Jun. 30, 2020

The following table summarizes the accrued workers’ compensation cost activity for the three and six months ended June 30, 2020 and 2019:



	Three Months Ended June 30,						Six Months Ended June 30,
(in millions)	2020			2019			2020			2019
Total accrued costs, beginning of period	$	217		$	236		$	214		$	238
Incurred
Current year	13			16			33			35
Prior years	(6		)	(11		)	(9		)	(16		)
Total incurred	7			5			24			19
Paid
Current year	(2		)	(2		)	(3		)	(3		)
Prior years	(11		)	(15		)	(24		)	(30		)
Total paid	(13		)	(17		)	(27		)	(33		)
Total accrued costs, end of period	$	211		$	224		$	211		$	224

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



(in millions)	June 30, 2020			December 31, 2019
Total accrued costs, end of period	$	211		$	214
Collateral paid to carriers and offset against accrued costs	(8		)	(9		)
Total accrued costs, net of carrier collateral offset	$	203		$	205
Payable in less than 1 year (net of collateral paid to carriers of $2 and $3 at June 30, 2020 and December 31, 2019, respectively.)	$	62		$	61
Payable in more than 1 year (net of collateral paid to carriers of $6 at June 30, 2020 and December 31, 2019.)	141			144
Total accrued costs, net of carrier collateral offset	$	203		$	205

Incurred claims related to prior years represent changes in estimates for ultimate losses on workers' compensation claims. For the three and six months ended June 30, 2020, the change was primarily due to a decrease in estimate of ultimate losses related to older plan years and recognition of current year development of ultimate loss.

As of June 30, 2020 and December 31, 2019, we had $45 million and $46 million, respectively, of collateral held by insurance carriers of which $8 million and $9 million, respectively, was offset against accrued workers' compensation costs as the agreements permit and are net settled against collateral held.