Discontinued operations

9 Months Ended

Sep. 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 nine months ended September 30, 2025, the Company received $1.3 million and $6.8 million, respectively, and paid $17,000 and $42,000, 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 $39,000 and $586,000, net of tax, were incurred during the three and nine months ended September 30, 2025, respectively. Separation related costs of $1.9 million and $9.2 million, net of tax, were incurred during the three and nine months ended September 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 September 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 September 30, 2024 were as follows:

	September 30, 2024
Assets	(In Thousands)
Current assets:
Cash, cash equivalents and restricted cash	$	15,734
Receivables, net	806,233
Inventories	46,923
Prepayments and other current assets	19,955
Total current assets of discontinued operations	888,845
Noncurrent assets:
Net property, plant and equipment	129,361
Goodwill	143,224
Other intangible assets, net	466
Investments	17,648
Operating lease right-of-use assets	68,852
Other	33,209
Total noncurrent assets of discontinued operations	392,760
Total assets of discontinued operations	$	1,281,605
Liabilities
Current liabilities:
Long-term debt due within one year	$	132,000
Accounts payable	382,597
Taxes payable	14,006
Accrued compensation	66,960
Operating lease liabilities due within one year	26,110
Other accrued liabilities	56,745
Total current liabilities of discontinued operations	678,418
Noncurrent liabilities:
Deferred income taxes	642
Operating lease liabilities	43,247
Other	13,080
Total noncurrent liabilities of discontinued operations	56,969
Total liabilities of discontinued operations	$	735,387

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				Nine Months Ended
	September 30,				September 30,
	2025		2024		2025		2024
	(In thousands)
Operating revenues	$	—	$	760,822	$	2	$	2,089,446
Operating expenses	52		705,135		1,195		1,944,457
Operating (loss) income	(52)		55,687		(1,193)		144,989
Other income	—		4,868		—		11,044
Interest expense	—		2,128		—		6,431
(Loss) income from discontinued operations before income taxes	(52)		58,427		(1,193)		149,602
Income tax (benefit) expense	(13)		9,415		(255)		34,232
Discontinued operations, net of tax	$	(39)	$	49,012	$	(938)	$	115,370