RESTRUCTURING

12 Months Ended

Dec. 31, 2024

Restructuring and Related Activities [Abstract]

During the fourth quarter of 2024, we completed a detailed review of our strategy and made several decisions that will narrow and intensify our focus on our U.S. PEO business. This will include winding down the software-only HRIS product as well as other immaterial products not directly related to our U.S. PEO business. In place of our software-only HRIS product, we will focus our ASO services to include both the software component, but also a significant service component similar to the types of services we provide to PEO clients.

In conjunction with this adjustment to our product offerings, we have implemented changes to our operating expense structure, including our staffing and office footprint.

As part of the restructuring initiatives, the Company incurred the charges show in the following table. These expenses are classified in G&A in our Consolidated statement of income and comprehensive income.


	Year Ended December 31,
(in millions)		2024
Cash restructuring costs:
Severance costs		$	14
Professional fees		3
Total cash restructuring costs		17

Non-cash restructuring costs:
Intangible asset and goodwill impairments		25
Fixed asset and ROU impairments		7
Total non-cash restructuring costs		32
Total restructuring costs		$	49

Severance costs include payments to colleagues, estimated reimbursements for COBRA payments and outplacement services. The following table is a summary of changes in accrued severance and exit and disposal costs included within accounts payable and other current liabilities and accrued wages:


	Year Ended December 31,
(in millions)	2024

Accounts payable and other current liabilities	1
Accrued wages	14

Balance at December 31, 2024	$	15

We expect to make payments for these liabilities during 2025. We expect the restructuring efforts to continue through 2026 and may recognize additional expenses as they are incurred.