Discontinued operations

6 Months Ended

Jun. 30, 2025

Discontinued Operations and Disposal Groups [Abstract]

Discontinued operations

Discontinued operations

On October 31, 2024, the Company completed the separation of Everus, its former construction services segment, into a new independent, publicly-traded company. The Company's board of directors approved the distribution of all the outstanding shares of Everus common stock to the Company's stockholders. Stockholders of the Company received one share of Everus common stock for every four shares of the Company's common stock held as of the close of business on October 21, 2024, the record date for the distribution. The separation of Everus was a tax-free spinoff transaction to the Company's stockholders for U.S. federal income tax purposes, except for cash received in lieu of fractional shares.

As a result of the separation, the historical results of operations are shown in discontinued operations, net of tax, except for allocated general corporate overhead costs of the Company, which did not meet the criteria for discontinued operations. The Company’s consolidated financial statements and accompanying notes for prior periods have been restated.

The Company provided and will provide to Everus and Everus provided and will provide to the Company transition services in accordance with the TSA entered into on October 31, 2024. For the three and six months ended June 30, 2025, the Company received $3.7 million and $5.5 million, respectively, and paid $12,000 and $25,000, respectively, for these related activities. The majority of the transition services are expected to be provided for a period of approximately eighteen months, however, no longer than two years after the separation.

Separation related costs of $45,000 and $547,000, net of tax, were incurred during the three and six months ended June 30, 2025, respectively. Separation related costs of $3.9 million and $7.4 million, net of tax, were incurred during the three and six months ended June 30, 2024, respectively. Separation costs incurred are presented in Discontinued operations, net of tax in the Consolidated Statements of Income. These charges primarily relate to transaction and third-party support costs, one-time business separation fees and related tax charges.

The Company had no assets or liabilities related to the discontinued operations of Everus on its balance sheet as of June 30, 2025 or December 31, 2024. The carrying amounts of the major classes of assets and liabilities of discontinued operations included in the Company's Consolidated Balance Sheet at June 30, 2024 were as follows:

	June 30, 2024
Assets	(In Thousands)
Current assets:
Cash, cash equivalents and restricted cash	$	15,658
Receivables, net	780,853
Inventories	48,575
Prepayments and other current assets	14,821
Total current assets of discontinued operations	859,907
Noncurrent assets:
Net property, plant and equipment	118,287
Goodwill	143,223
Other intangible assets, net	960
Investments	13,420
Operating lease right-of-use assets	61,694
Other	29,035
Total noncurrent assets of discontinued operations	366,619
Total assets of discontinued operations	$	1,226,526
Liabilities
Current liabilities:
Long-term debt due within one year	$	132,000
Accounts payable	336,025
Taxes payable	10,828
Accrued compensation	45,310
Operating lease liabilities due within one year	22,693
Other accrued liabilities	55,913
Total current liabilities of discontinued operations	602,769
Noncurrent liabilities:
Deferred income taxes	4,612
Operating lease liabilities	39,480
Other	12,650
Total noncurrent liabilities of discontinued operations	56,742
Total liabilities of discontinued operations	$	659,511

The reconciliation of the major classes of income and expense constituting pretax loss from discontinued operations to the after-tax loss from discontinued operations on the Consolidated Statements of Income were as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2025		2024		2025		2024
	(In thousands)
Operating revenues	$	—	$	703,074	$	—	$	1,328,624
Operating expenses	429		653,063		1,028		1,239,322
Operating (loss) income	(429)		50,011		(1,028)		89,302
Other income	—		4,298		—		6,176
Interest expense	—		2,108		—		4,303
(Loss) income from discontinued operations before income taxes	(429)		52,201		(1,028)		91,175
Income tax (benefit) expense	(32)		12,007		(129)		24,818
Discontinued operations, net of tax	$	(397)	$	40,194	$	(899)	$	66,357