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ACCRUED WORKERS' COMPENSATION COSTS
 3 Months Ended
Mar. 31, 2026
Insurance [Abstract]  
ACCRUED WORKERS' COMPENSATION COSTS ACCRUED WORKERS' COMPENSATION COSTS
The following table summarizes the accrued workers’ compensation cost activity for the three months ended March 31, 2026 and 2025:
Three Months Ended
March 31,
(in millions)
2026
2025
Total accrued costs, beginning of period$151 $158 
Incurred
Current year15 14 
Prior years(1)(1)
Total incurred14 13 
Paid
Current year— — 
Prior years(9)(11)
Total paid(9)(11)
Total accrued costs, end of period$156 $160 
The following summarizes workers' compensation liabilities on the condensed consolidated balance sheets:
(in millions)
March 31, 2026
December 31, 2025
Total accrued costs, end of period$156 $151 
Collateral paid to carriers and offset against accrued costs(3)(3)
Total accrued costs, net of carrier collateral offset$153 $148 
Payable in less than 1 year
(net of collateral paid to carriers of $1 at March 31, 2026 and December 31, 2025)
$44 $42 
Payable in more than 1 year
(net of collateral paid to carriers of $2 at March 31, 2026 and December 31, 2025)
109 106 
Total accrued costs, net of carrier collateral offset$153 $148 
Incurred losses related to prior years represent changes in estimates for ultimate losses on workers' compensation claims. For the three months ended March 31, 2026, the favorable development is driven by lower than expected development on the average size of reported claims.
As of March 31, 2026 and December 31, 2025, we had $25 million of collateral held by insurance carriers, of which $3 million was offset against accrued workers' compensation costs as the agreements permit and are net settled of insurance obligations against collateral held.