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ACQUISITIONS
 6 Months Ended
Jun. 30, 2026
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
ACQUISITIONS ACQUISITIONS
Cocoon
On April 10, 2026, we acquired 100% of the equity of Cocoon Financial Services, Inc. (“Cocoon”), a Delaware corporation. Cocoon is a technology company that develops and provides software products and services, including solutions that deliver leave law information and related functionality to its customers.
The acquisition was undertaken to enhance our tools related to WSE leave management, including real-time leave tracking, integrated claims filing and streamlined payroll calculations.
The Company recorded the acquisition using the acquisition method of accounting for business combinations in accordance with ASC 805 and recognized identifiable assets acquired and liabilities assumed at their fair value as of the date of acquisition. We measure goodwill as the excess of the cash and stock consideration transferred, which we also measure at fair value, over the net of the acquisition date fair values of the identifiable assets acquired and liabilities assumed. The values assigned to the assets acquired and liabilities assumed are based on preliminary estimates of fair value available as of the date of this Quarterly Report on Form 10-Q and may change over the measurement period as the analysis of the assets acquired and liabilities assumed is finalized and additional information is received. The measurement period will end no later than one year from the acquisition date.
The purchase price was $23 million, which included $1 million of Cocoon’s own cash paid to its former shareholders resulting in a net cash paid by TriNet of $22 million.
The following table summarizes the fair value of the net assets acquired and preliminary allocation of the purchase price:
(in millions)Amount
Total purchase price$22 
Assets acquired:
Unrestricted investments$3 
Accounts receivable, net2 
Software and other intangible assets, net17 
Total assets acquired22 
Liabilities assumed:
Client deposits and other client liabilities$3 
Accrued wages1 
Total liabilities assumed4 
Net assets acquired$18 
Goodwill at acquisition$4 
Goodwill represents future economic benefits we expect to achieve as a result of the acquisition, including revenue and cost synergies from our complementary business models. The results of Cocoon have been included in our condensed consolidated financial statements since the closing of the acquisition. Pro forma financial information was not presented because the effect of the acquisition was not material to our results of operations and financial condition. The goodwill associated with the acquisition is not deductible for income tax purposes.    
The intangible assets acquired were as follows:
(in millions)AmountEstimated Useful Life
Acquired technology$17 7 years
Total intangible assets$17