MDU RESOURCES GROUP INC

Previous wording

Based on the Company becoming a pure-play regulated energy delivery business, the Company's board of directors established a long-term dividend payout ratio target of 60 percent to 70 percent of regulated energy delivery earnings. The Company has an 87-year history of uninterrupted dividend payments to stockholders and remains committed to paying a competitive dividend.

Current wording

Dividends Based on the Company becoming a pure-play regulated energy delivery business, the Company's board of directors established a long-term dividend payout ratio target of 60 percent to 70 percent of regulated energy delivery earnings. The Company has an 87-year history of uninterrupted dividend payments to stockholders and remains committed to paying a competitive dividend.

Previous wording

Market Trends The Company continues to manage the inflationary pressures experienced throughout the United States, including the impact that inflation, higher interest rates, changes in tariffs, commodity price volatility and supply chain disruptions may have on its business and customers and proactively looks for ways to lessen the impact to its business. The Company has observed supply chain improvements in lead times for certain commodities. Although the Company has started to see some reduction to interest rates, they remain elevated and have resulted in and may continue to result in increased borrowing costs on new debt, impacts to the Company's asset valuations and negatively impacting the purchasing power of its customers. The Company has not yet observed any material impacts related to the changes in tariffs and continues to monitor the future impacts that may occur.

Current wording

Market Trends The Company continues to manage the inflationary pressures experienced throughout the United States, including the impact that inflation, higher interest rates, changes in tariffs, commodity price volatility and supply chain disruptions may have on its business and customers and proactively looks for ways to lessen the impact to its business. The Company has observed supply chain improvements in lead times for certain commodities. The Company has experienced impacts related to the changes in tariffs and continues to navigate the current environment and monitor the future for impacts that could occur. For more information specific to each of the Company's businesses, see the following discussion in each business segment's Outlook section. For more information on the possible impacts, see Part II, Item 1A. Risk Factors in this Form 10-Q and Part I, Item 1A. Risk Factors in the 2024 Annual Report.

Previous wording

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the federal securities laws. Other than statements of historical facts, all statements which address activities, events, or developments that the Company anticipates will or may occur in the future are based on underlying assumptions (many of which are based, in turn, upon further assumptions), including, but not limited to, statements identified by the words "anticipates," "estimates," "expects," "intends," "plans," and "predicts" in each case related to such things as growth estimates, stockholder value creation, the Company's "CORE" strategy, capital expenditures, financial guidance, trends, objectives, goals, dividend payout ratio targets, strategies and other such matters, are forward-looking statements. These forward-looking statements are based on many assumptions and factors, which are detailed in the Company's filings with the SEC.

Current wording

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the federal securities laws. Other than statements of historical facts, all statements which address activities, events, or developments that the Company anticipates will or may occur in the future are based on underlying assumptions (many of which are based, in turn, upon further assumptions), including, but not limited to, statements identified by the words "anticipates," "estimates," "expects," "intends," "plans," and "predicts," in each case related to such things as growth estimates, stockholder value creation, the Company's "CORE" strategy, capital expenditures, trends, objectives, goals, dividend payout ratio targets, strategies and other such matters, are forward-looking statements. These forward-looking statements are based on many assumptions and factors, which are detailed in the Company's filings with the SEC.

Previous wording

Three Months Ended June 30, 2025, Compared to Three Months Ended June 30, 2024 The Company's consolidated earnings decreased $46.7 million. The decrease in earnings is primarily due to the absence of income from discontinued operations in 2025. Other drivers of the earnings decrease include:

Current wording

Three Months Ended September 30, 2025, Compared to Three Months Ended September 30, 2024 The Company's consolidated earnings decreased $46.2 million. The decrease in earnings is primarily due to the absence of income from discontinued operations in 2025. Other drivers of the earnings decrease include:

Previous wording

•The electric business earnings decrease was largely the result of higher operation and maintenance expense, primarily due to increased payroll-related costs, higher contract services related to electric generation station planned outage-related costs, as well as increased software, which includes certain costs associated with TSA services provided, and insurance expenses. The decrease in net income was partially offset by rate relief in South Dakota and increased commercial retail sales volumes, largely from a data center near Ellendale, North Dakota.

Current wording

•The electric business earnings decrease was largely the result of higher operation and maintenance expense, primarily due to increased payroll-related costs and higher contract services related to electric generation station outage-related costs. Higher depreciation expense, primarily associated with capital projects placed in service, further drove the decrease. The decrease in net income was partially offset by higher retail sales revenue.

Previous wording

•The natural gas distribution business reported an increased seasonal loss, largely the result of higher operation and maintenance expense, primarily due to higher payroll-related costs and increased software expenses, which includes certain costs associated with TSA services provided. Lower volumes due to warmer weather further drove the loss. The seasonal loss was partially offset by higher retail sales revenue due to rate relief in Washington and Montana, and higher transportation revenue.

Current wording

•The natural gas distribution business reported an increased seasonal loss, largely the result of higher operation and maintenance expense, primarily due to higher payroll-related costs and decreased interest income associated with lower purchased gas costs. Higher depreciation expense, primarily associated with capital projects placed in service, further drove the loss. The seasonal loss was partially offset by higher retail sales revenue due to rate relief in Washington, Montana, and Wyoming, as well as lower interest expense.

Previous wording

•The earnings decrease at the pipeline business was driven by higher operations and maintenance expense, primarily attributable to payroll-related costs. The absence of proceeds received in 2024 from a customer settlement further drove the decrease. The business also incurred higher depreciation expense due to growth projects placed in service throughout 2024, and higher property tax accruals in certain jurisdictions. The decrease was offset in part by higher transportation revenue due to growth projects placed in service, as previously discussed, and customer demand for short-term natural gas transportation contracts.

Current wording

•The earnings increase at the pipeline business was driven by higher transportation revenue due to growth projects placed in service in late 2024 and customer demand for short-term natural gas transportation contracts. The increase was offset in part by higher operation and maintenance expense, primarily attributable to payroll-related costs. The business also incurred higher property tax accruals in Montana and higher depreciation expense due to growth projects placed in service.

Previous wording

•Other experienced lower operation and maintenance expense, primarily a result of corporate overhead costs classified as continuing operations allocated to Everus in 2024, which are not included in Other in 2025. Other was negatively impacted by higher income tax adjustments related to the Company's annualized estimated tax rate.

Current wording

•Other experienced lower operation and maintenance expense, primarily a result of corporate overhead costs classified as continuing operations allocated to Everus in 2024, which are not included in Other in 2025, and lower insurance claims experience at the captive insurer. Other was negatively impacted by higher income tax adjustments related to the Company's annualized estimated tax rate.

Previous wording

Six Months Ended June 30, 2025, Compared to Six Months Ended June 30, 2024 The Company's consolidated earnings decreased $65.6 million. The decrease in earnings is primarily due to the absence of income from discontinued operations in 2025.

Current wording

Nine Months Ended September 30, 2025, Compared to Nine Months Ended September 30, 2024 The Company's consolidated earnings decreased $111.8 million. The decrease in earnings is primarily due to the absence of income from discontinued operations in 2025.

Previous wording

•The electric business earnings decrease was largely the result of higher operation and maintenance expense, primarily due to higher payroll-related costs, increased software expenses, which includes certain costs associated with TSA services provided, higher contract services related to electric generation station planned outage-related costs, and higher insurance expense. The decrease in net income was partially offset by higher retail sales volumes, partly from a data center near Ellendale, North Dakota, as well as rate relief in South Dakota.

Current wording

•The electric business earnings decrease was largely the result of higher operation and maintenance expense, primarily due to higher payroll-related costs, higher contract services related to electric generation station outage-related costs, increased software expenses, which includes certain costs associated with TSA services provided, and higher insurance expense. The decrease in net income was partially offset by higher retail sales volumes, partly from a data center near Ellendale, North Dakota.

Previous wording

•The natural gas distribution earnings improvement was largely the result of higher retail sales revenue due to rate relief in Washington, Montana and South Dakota, increased volumes due to colder weather in certain jurisdictions, as well as higher transportation revenue. These increases were partially offset by higher operation and maintenance expense, primarily due to increased payroll-related costs and higher software expenses, which includes certain costs associated with TSA services provided. Lower interest income also negatively impacted earnings.

Current wording

•The natural gas distribution earnings improvement was largely the result of higher rate relief in Washington, Montana, South Dakota and Wyoming and increased volumes due to colder weather in certain jurisdictions. These increases were partially offset by higher operation and maintenance expense, primarily due to increased payroll-related costs, higher software expenses, which includes certain costs associated with TSA services provided, and higher insurance expense. Lower interest income also negatively impacted earnings.

Previous wording

•The slight earnings increase at the pipeline business was driven by growth projects placed in service throughout 2024 and customer demand for short-term natural gas transportation contracts. Higher storage-related revenue further drove the increase. The increase was largely offset by higher operation and maintenance expense, primarily attributable to payroll-related costs, and the absence of proceeds received in 2024 from a customer settlement. The business also incurred higher depreciation expense due to growth projects placed in service, as previously discussed, and higher property tax accruals in certain jurisdictions.

Current wording

•The earnings increase at the pipeline business was driven by growth projects placed in service throughout 2024 and customer demand for short-term natural gas transportation contracts. Higher storage-related revenue further drove the increase. The increase was partially offset by higher operation and maintenance expense, primarily attributable to payroll-related costs. The absence of $1.5 million, net of tax proceeds received in 2024 from a customer settlement further offset the increase. The business also incurred higher depreciation expense due to growth projects placed in service, as previously discussed, and higher property tax accruals in Montana.

Previous wording

•Other experienced lower operation and maintenance expense, primarily a result of corporate overhead costs classified as continuing operations allocated to Everus in 2024, which are not included in Other in 2025.

Current wording

•Other experienced lower operation and maintenance expense, primarily a result of corporate overhead costs classified as continuing operations allocated to Everus in 2024, which are not included in Other in 2025, and lower insurance claims experience at the captive insurer.

Previous wording

To date, many states have enacted and others are considering, mandatory clean energy standards requiring utilities to meet certain thresholds of renewable and/or carbon-free energy supply. Over the long-term, the Company expects overall electric demand to be positively impacted by increased electrification trends as a means to address economy-wide carbon emission concerns, data center growth and changing customer conservation patterns. Recently, MISO and NERC announced concerns with the reliability of the electric grid due to rapid expansion of renewables and retirement of baseload resources such as coal and the uncertainty of adequate energy production during certain periods of time, while load growth has increased faster than expected. Montana-Dakota filed its 2024 IRP with the NDPSC in July 2024. With MISO's filed changes in resources adequacy at FERC and the adoption of direct loss of load accreditation for generation resources around riskiest hours on the system versus peak load hours, Montana-Dakota is seeing the need to add additional capacity resources to its system in 2028 versus 2034 as identified in its previous IRP. The Company signed a power purchase agreement and ownership purchase agreement with Badger Wind, LLC for 150 MW of output capacity from the 250 MW Badger Wind Project which will reduce the Company's capacity and energy purchase requirements as identified in the 2024 IRP. Montana-Dakota will continue to monitor the progress of these changes, including the impacts associated with the implementation of MISO's direct loss of load accreditation in 2028, and assess the potential impacts they may have on its stakeholders, business processes, results of operations, cash flows and disclosures.

Current wording

To date, many states have enacted and others are considering, mandatory clean energy standards requiring utilities to meet certain thresholds of renewable and/or carbon-free energy supply. Over the long-term, the Company expects overall electric demand to be positively impacted by increased electrification trends as a means to address economy-wide carbon emission concerns, large data center growth and changing customer conservation patterns. Recently, MISO and NERC announced concerns with the reliability of the electric grid due to rapid expansion of renewables and retirement of baseload resources such as coal and the uncertainty of adequate energy production during certain periods of time, while load growth has increased faster than expected primarily due to growth in the data center industry. Montana-Dakota filed its 2024 IRP with the NDPSC in July 2024. With MISO's filed changes in resources adequacy at FERC and the adoption of direct loss of load accreditation for generation resources around riskiest hours on the system versus peak load hours, Montana-Dakota is seeing the need to add additional capacity resources to its system in 2028 versus 2034 as identified in its previous IRP. The Company signed a power purchase and ownership purchase agreement with Badger Wind, LLC for 150 MW of output capacity from the 250 MW Badger Wind Project which will reduce the Company's capacity and energy purchase requirements as identified in the 2024 IRP. Montana-Dakota will continue to monitor the progress of these changes, including the impacts associated with the implementation of MISO's direct loss of load accreditation in 2028, and assess the potential impacts they may have on its stakeholders, business processes, results of operations, cash flows and disclosures.

Previous wording

In late summer and fall of 2023, electric fuel and purchased power prices increased across Montana-Dakota's integrated system. This was caused by transmission congestion in northwest North Dakota due to delays in additional SPP transmission line build-out, as well as additional load growth in the Bakken region. Electric fuel and purchased power prices remained elevated through January 2024. Montana-Dakota and MISO each filed a complaint with FERC against SPP, which were denied, along with rehearing requests which were also denied. In January 2025, Montana-Dakota and MISO each filed a petition for review of the FERC decision with the Eighth Circuit. Initial briefs with the Eighth Circuit were due June 25, 2025. To assist in the recovery of the higher electric fuel and purchased power costs, Montana-Dakota filed waiver requests with the NDPSC and SDPUC, which were approved deferring the increased costs to the annual fuel clause adjustment. In Montana, the waiver request is filed monthly and was unopposed by the MTPSC. Effective April 1, 2024, as approved by the NDPSC, Montana-Dakota started recovery in North Dakota of these increased costs over a period of two years rather than one year, which will lessen the impact to customers and allow more time for Montana-Dakota's FERC complaint to mature and have greater certainty of the outcome. In South Dakota and Montana, Montana-Dakota recovered these costs over a one-year period effective July 1, 2024. In July 2025, the NDPSC approved Montana-Dakota's request to defer external legal expenses related to this congestion litigation and record those deferred expenses into a regulatory asset.

Current wording

In second half of 2023, electric fuel and purchased power prices increased across Montana-Dakota's integrated system, and remained elevated through January 2024. This was caused by transmission congestion in northwest North Dakota due to delays in additional SPP transmission line build-out, as well as additional load growth in the Bakken region. To assist in the recovery of the higher electric fuel and purchased power costs, Montana-Dakota filed waiver requests with the NDPSC and SDPUC, deferring the increased costs to the annual fuel clause adjustment. In Montana, the waiver request is filed monthly and was unopposed by the MTPSC. Effective April 1, 2024, as approved by the NDPSC, Montana-Dakota started recovery in North Dakota of these increased costs over a period of two years rather than one year. In South Dakota and Montana, Montana-Dakota recovered these costs over a one-year period effective July 1, 2024. In July 2025, the NDPSC approved Montana-Dakota's request to defer external legal expenses related to this congestion litigation and record those deferred expenses into a regulatory asset. Montana-Dakota and MISO each filed a petition for review of the FERC decision with the Eighth Circuit with a decision expected in the first half of 2026.

Previous wording

The Company continues to proactively monitor and work with its manufacturers to reduce the effects of increased pricing and long lead times on delivery of certain raw materials and equipment used in electric generation, transmission and distribution system and natural gas pipeline projects. Long lead times are attributable to increased demand for steel products from pipeline companies as they continue pipeline system safety and integrity replacement projects driven by PHMSA regulations, as well as delays in the manufacturing and shipping of electrical equipment and increased demand for electrical equipment due to regulatory activity and grid expansion. The Company has been able to minimize the effects by working closely with suppliers or obtaining additional suppliers, as well as modifying project plans to accommodate extended lead times and increased costs. The Company expects these delays and inflationary pressures to continue. The Company also continues to monitor the impact tariffs will have on its costs. Tariff increases on raw materials could negatively affect the Company's construction projects and maintenance work. For additional discussion regarding risks and uncertainties, see Part II, Item 1A. Risk Factors in this quarterly report and Part I, Item 1A. Risk Factors in the 2024 Annual Report.

Current wording

The Company continues to proactively monitor and work with its manufacturers to reduce the effects of increased pricing and long lead times on delivery of certain raw materials and equipment used in electric generation, transmission and distribution system and natural gas pipeline projects. Long lead times are attributable to increased demand for steel products from pipeline companies as they continue pipeline system safety and integrity replacement projects driven by PHMSA regulations, as well as delays in the manufacturing and shipping of electrical equipment and increased demand for electrical equipment due to regulatory activity and grid expansion. The Company has been able to minimize the effects by working closely with suppliers or obtaining additional suppliers, as well as modifying project plans to accommodate extended lead times and increased costs. The Company expects these delays to continue. Inflationary pressures have moderated but costs for goods and services remain high. The Company also continues to monitor the impact tariffs will have on its costs. Tariff increases on raw materials could negatively affect the Company's construction projects and maintenance work. For additional discussion regarding risks and uncertainties, see Part II, Item 1A. Risk Factors in this quarterly report and Part I, Item 1A. Risk Factors in the 2024 Annual Report.

Previous wording

The ability to grow through acquisitions is subject to significant competition and acquisition premiums. In addition, the ability of the segments to grow their service territory and customer base is affected by regulatory constraints, the economic environment of the markets served, population changes and competition from other energy providers and fuel. The construction of new electric generating facilities, transmission lines and other service facilities is subject to increasing costs and lead times, extensive permitting procedures, and federal and state legislative and regulatory initiatives, which may necessitate increases in electric energy prices. As the industry continues to expand the use of renewable energy sources, the need for additional transmission infrastructure is growing. As part of MISO's long range transmission plan, in August 2022, the Company announced its intent to develop, construct and co-own JETx with Otter Tail Power Company in central North Dakota. In October 2023, the FERC issued an order approving the Company's request for CWIP Incentive Rate and Abandoned Plant Incentive treatment on this project. Montana-Dakota and Otter Tail Power Company received approval of a Certificate of Public Convenience and Necessity from the NDPSC in November 2024 on this project.

Current wording

The ability to grow through acquisitions is subject to significant competition and acquisition premiums. In addition, the ability of the segments to grow their service territory and customer base is affected by regulatory constraints, the economic environment of the markets served, population changes and competition from other energy providers and fuel. The construction of new electric generating facilities, transmission lines and other service facilities is subject to higher costs and long lead times for equipment, extensive permitting procedures, and federal and state legislative and regulatory initiatives, which may necessitate increases in electric energy prices. As the industry continues to expand the use of renewable energy sources, the need for additional transmission infrastructure is growing. As part of MISO's long range transmission plan, in August 2022, the Company announced its intent to develop, construct and co-own JETx with Otter Tail Power Company in central North Dakota. In October 2023, the FERC issued an order approving the Company's request for CWIP Incentive Rate and Abandoned Plant Incentive treatment on this project. Montana-Dakota and Otter Tail Power Company received approval of a Certificate of Public Convenience and Necessity from the NDPSC in November 2024 on this project. The route permit for JETx line was filed with the NDPSC in August 2025. JETx is expected to be placed in service at the end of 2028.

Previous wording

Three Months Ended June 30, 2025, Compared to Three Months Ended June 30, 2024 Electric earnings decreased $5.1 million as a result of:

Current wording

Three Months Ended September 30, 2025, Compared to Three Months Ended September 30, 2024 Electric earnings decreased $2.8 million as a result of:

Previous wording

•Electric fuel and purchased power increased $2.2 million, largely the result of higher retail sales volumes, partially offset by lower commodity prices.

Current wording

•Electric fuel and purchased power increased $8.7 million, largely the result of higher commodity prices, partially offset by lower retail sales volumes.

Previous wording

•Depreciation and amortization increased $1.7 million, largely due to increased property, plant, and equipment balances as a result of transmission projects placed in service to improve reliability and update aging infrastructure.

Current wording

•Depreciation and amortization increased $500,000, largely due to increased property, plant, and equipment balances as a result of transmission projects placed in service to improve reliability and update aging infrastructure.

Previous wording

•Taxes, other than income was comparable to the same period in the prior year.

Current wording

•Interest expense was comparable to the same period in the prior year.

Previous wording

Six Months Ended June 30, 2025, Compared to Six Months Ended June 30, 2024 Electric earnings decreased $8.0 million as a result of:

Current wording

Nine Months Ended September 30, 2025, Compared to Nine Months Ended September 30, 2024 Electric earnings decreased $10.8 million as a result of:

Previous wording

▪Higher fuel and purchased power costs of $2.2 million recovered in customer rates and offset in expense, as described below.

Current wording

▪Higher fuel and purchased power costs of $10.8 million recovered in customer rates and offset in expense, as described below.

Previous wording

▪Higher net transmission revenue of $1.1 million, including data center revenue.

Current wording

▪Higher net transmission revenue of $1.9 million, including data center revenue.

Previous wording

▪Higher retail sales volumes of $1.8 million, driven primarily by higher residential volumes, largely due to colder weather in the first quarter of the year, and higher commercial volumes from the data center as further discussed in the Outlook section.

Current wording

▪Higher retail sales volumes of $1.4 million, driven primarily by higher residential volumes, largely due to colder weather in the first quarter of the year, and higher commercial volumes from the data center as further discussed in the Outlook section.

Previous wording

•Electric fuel and purchased power decreased $1.8 million, largely the result of lower commodity prices, partially offset by higher retail sales volumes.

Current wording

•Electric fuel and purchased power increased $10.8 million, largely the result of higher retail sales volumes, partially offset by lower commodity prices.

Previous wording

▪Increased software expense of $1.9 million.

Current wording

▪Increased software expense of $3.0 million.

Previous wording

•Depreciation and amortization increased $1.1 million, largely due to increased property, plant, and equipment balances as a result of transmission projects placed in service to improve reliability and update aging infrastructure.

Current wording

•Depreciation and amortization increased $2.3 million, largely due to increased property, plant, and equipment balances as a result of transmission projects placed in service to improve reliability and update aging infrastructure.

Previous wording

•Other income decreased $300,000, primarily resulting from lower interest income from regulatory deferral balances and lower returns on the Company's nonqualified benefit plan investments, partially offset by TSA income as described above.

Current wording

•Other income increased $200,000, including higher TSA income, as described above, partially offset by lower interest income from regulatory deferral balances.

Previous wording

•Income tax benefit increased $5.2 million, largely due to lower income before income taxes, and higher production tax credits of $2.3 million driven by higher wind production.

Current wording

•Income tax benefit increased $5.5 million, largely due to lower income before income taxes, and higher production tax credits of $1.6 million driven by higher wind production.

Previous wording

Three Months Ended June 30, 2025, Compared to Three Months Ended June 30, 2024 Natural gas distribution reported an increased seasonal loss of $2.4 million as a result of:

Current wording

Three Months Ended September 30, 2025, Compared to Three Months Ended September 30, 2024 Natural gas distribution reported an increased seasonal loss of $700,000 as a result of:

Previous wording

▪Higher purchased natural gas sold of $2.4 million, including net environmental compliance costs, recovered in customer rates and offset in expense, as described below.

Current wording

▪Higher purchased natural gas sold of $5.4 million, including net environmental compliance costs, recovered in customer rates and offset in expense, as described below.

Previous wording

▪Rate relief of $3.2 million, primarily in Washington and Montana.

Current wording

▪Rate relief of $3.7 million, primarily in Washington and Montana.

Previous wording

•Purchased natural gas sold increased $2.4 million, largely due to net environmental compliance costs of $10.3 million and higher commodity costs of $1.8 million. These increases were largely offset by lower volumes of natural gas purchased of $9.7 million.

Current wording

•Purchased natural gas sold increased $5.4 million, largely due to higher volumes of natural gas purchased of $8.4 million. This increase was partially offset by lower commodity costs of $1.5 million and net environmental compliance costs of $1.5 million.

Previous wording

▪Higher transportation revenues of $1.3 million.

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▪Higher payroll-related costs of $1.3 million.

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•Depreciation and amortization increased $1.6 million, primarily resulting from growth and replacement projects placed in service of $3.3 million, largely offset by lower depreciation rates implemented from rate cases in North Dakota, Montana and South Dakota of $1.0 million, and lower regulatory amortizations.

Current wording

•Depreciation and amortization increased $1.6 million, of which $2.0 million resulted from increased property, plant and equipment balances related to growth and replacement projects placed in service, partially offset by lower depreciation rates implemented from rates cases in North Dakota, Montana and Wyoming of $500,000.

Previous wording

•Taxes, other than income increased $600,000, largely from higher revenue-based taxes recovered in rates.

Current wording

•Taxes, other than income increased $2.1 million, due to higher property taxes, largely in Montana and Washington, and higher revenue-based taxes recovered in rates, as described above.

Previous wording

▪Lower interest income on regulatory deferral balances.

Current wording

•Other income decreased $2.1 million, primarily due to lower interest income on regulatory deferral balances, partially offset by higher TSA revenue, as described above.

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•Interest expense decreased $1.6 million, primarily from lower long-term interest expense, largely due to lower long-term debt balances.

Current wording

•Interest expense decreased $1.2 million, primarily from lower long-term interest expense, largely due to lower long-term debt balances.

Previous wording

•Income tax benefit increased $400,000, primarily the result of higher seasonal loss before income taxes, partially offset by changes in permanent tax adjustments.

Current wording

•Income tax benefit increased $500,000, primarily the result of higher seasonal loss before income taxes and changes in permanent tax adjustments.