Discontinued operations includes certain costs associated with legacy business activities other than certain general and administrative costs (reflected in operation and maintenance expense) and interest expense, which were previously allocated to the Company's former businesses which do not meet the criteria for 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. As a result of the separation, the Company provided to Everus and Everus provided 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, 2026, the Company received $72,000 and $1.3 million, respectively, for these related activities. 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. All transition services were completed as of March 31, 2026.

The Company did not incur any separation related costs for the three months ended June 30, 2026. Separation related costs of $130,000, net of tax, were incurred during the six months ended June 30, 2026 and $45,000 and $547,000, net of tax, for the three and six months ended June 30, 2025, respectively. In the second quarter of 2026, the Company recorded a tax benefit of $1.5 million related to an election for a change in tax method for certain strategic initiative costs. Separation costs incurred and the tax benefit are presented in Discontinued operations, net of tax in the Consolidated Statements of Income. Separation costs 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, 2026, June 30, 2025, or December 31, 2025.

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


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2026		2025		2026		2025
	(In thousands)
Operating revenues	$	1	$	—	$	1	$	—
Operating expenses	(650)		429		(494)		1,028
Operating (loss) income	651		(429)		495		(1,028)
Other income	—		—		—		—
Interest expense	—		—		—		—
Income (loss) from discontinued operations before income taxes	651		(429)		496		(1,028)
Income tax benefit	(1,316)		(32)		(1,341)		(129)
Discontinued operations, net of tax	$	1,967	$	(397)	$	1,837	$	(899)