Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 15, 2016 | Jun. 30, 2015 | |
Document and Entity Information | |||
Entity Registrant Name | CENTRUS ENERGY CORP | ||
Entity Central Index Key | 1,065,059 | ||
Trading Symbol | LEU | ||
Current Fiscal Year End Date | --12-31 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Common Stock, Shares Outstanding | 9,000,000 | ||
Document Fiscal Year Focus | 2,015 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Public Float | $ 27,900,000 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Document Fiscal Period Focus | Q4 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets | ||
Cash and cash equivalents | $ 234 | $ 218.8 |
Accounts receivable, net | 26.5 | 58.9 |
Inventories | 319.2 | 462.2 |
Deferred costs associated with deferred revenue | 63.1 | 82.9 |
Other current assets | 15.2 | 19.6 |
Total current assets | 658 | 842.4 |
Property, Plant and Equipment, Net | 3.5 | 3.5 |
Deposits for surety bonds | 29.8 | 34.8 |
Intangible assets | 105.8 | 119.2 |
Excess reorganization value | 0 | 137.2 |
Other long-term assets | 23.6 | 20.6 |
Total Assets | 820.7 | 1,157.7 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 44.8 | 50.5 |
Payables under SWU purchase agreements | 85.4 | 140.1 |
Deferred taxes | 26 | |
Inventories owed to customers and suppliers | 106.8 | 158.9 |
Deferred revenue | 83.9 | 100.9 |
Decontamination and decommissioning obligations | 29.4 | 0 |
Total current liabilities | 350.3 | 450.4 |
Long-term debt | 247.6 | 240.4 |
Postretirement health and life benefit obligations | 184.3 | 211.4 |
Pension benefit liabilities | 172.3 | 179.3 |
Decontamination and decommissioning obligations | 0 | 22.6 |
Other long-term liabilities | 31.9 | 32 |
Total liabilities | $ 986.4 | $ 1,136.1 |
Commitments and contingencies (Note 13) | ||
Stockholders' Equity (Deficit) | ||
Additional Paid in Capital | $ 59 | $ 58.6 |
Common Stock, Value, Issued | 0.9 | 0.9 |
Retained Earnings (Accumulated Deficit) | (229.7) | (42.3) |
Accumulated Other Comprehensive Income (Loss), Net of Tax | 4.1 | 4.4 |
Total stockholders’ equity (deficit) | (165.7) | 21.6 |
Total Liabilities and Stockholders’ Equity (Deficit) | $ 820.7 | $ 1,157.7 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 |
Preferred Stock, Par or Stated Value Per Share | $ 1 | $ 1 | |
Preferred Stock, Shares Authorized | 20,000,000 | 20,000,000 | 20,000,000 |
Common Stock, Par or Stated Value Per Share | $ 0.10 | $ 0.10 | |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 | |
Common Stock, Shares, Issued | 9,000,000 | 9,000,000 | 9,000,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2015 | |
Revenue: | |||
Total Revenue | $ 123.6 | $ 390.5 | $ 418.2 |
Cost of Sales: | |||
Impairment of excess reorganization value | 137.2 | ||
Special charges for workforce reductions | 2.1 | 2.1 | 13.2 |
Provision (benefit) for income taxes | (2.4) | (1) | (0.3) |
Predecessor [Member] | |||
Revenue: | |||
Contract services | 43 | ||
Total Revenue | 390.5 | ||
Cost of Sales: | |||
Separative work units and uranium | 369.4 | ||
Contract services | 43.9 | ||
Total cost of sales | 413.3 | ||
Gross profit (loss) | (22.8) | ||
Advanced technology costs | 56.6 | ||
Selling, general and administrative | 32.2 | ||
Amortization of intangible assets | 0 | ||
Impairment of excess reorganization value | 0 | ||
Special charges for workforce reductions | 2.1 | ||
Other (income) | (39.4) | ||
Operating (loss) | (74.3) | ||
Interest expense | 14 | ||
Interest (income) | (0.5) | ||
Reorganization items, net | (426.9) | ||
Income (loss) before income taxes | 339.1 | ||
Provision (benefit) for income taxes | (1) | ||
Net income (loss) | $ 340.1 | ||
Net income (loss) per share - basic | $ 69.41 | ||
Net income (loss) per share - diluted | $ 45.93 | ||
Weighted-average number of shares outstanding: | |||
Weighted Average Number of Shares Outstanding, Basic | 4.9 | ||
Weighted Average Number of Shares Outstanding, Diluted | 7.6 | ||
Predecessor [Member] | Separative Work Units [Member] | |||
Revenue: | |||
Revenue, Goods | $ 347.5 | ||
Predecessor [Member] | Uranium [Member] | |||
Revenue: | |||
Revenue, Goods | $ 0 | ||
Successor [Member] | |||
Revenue: | |||
Contract services | 21.8 | ||
Total Revenue | 123.6 | 418.2 | |
Cost of Sales: | |||
Separative work units and uranium | 119.6 | 285.3 | |
Contract services | 22.5 | 64 | |
Total cost of sales | 142.1 | 349.3 | |
Gross profit (loss) | (18.5) | 68.9 | |
Advanced technology costs | 4.7 | 33 | |
Selling, general and administrative | 10.2 | 42.6 | |
Amortization of intangible assets | 4.3 | 13.4 | |
Impairment of excess reorganization value | 0 | 137.2 | |
Special charges for workforce reductions | 2.1 | 13.2 | |
Other (income) | (1.3) | (2.1) | |
Operating (loss) | (38.5) | (168.4) | |
Interest expense | 4.9 | 19.6 | |
Interest (income) | (0.2) | (0.3) | |
Reorganization items, net | 1.5 | 0 | |
Income (loss) before income taxes | (44.7) | (187.7) | |
Provision (benefit) for income taxes | (2.4) | (0.3) | |
Net income (loss) | $ (42.3) | $ (187.4) | |
Net income (loss) per share - basic | $ (4.70) | $ (20.82) | |
Net income (loss) per share - diluted | $ (4.70) | $ (20.82) | |
Weighted-average number of shares outstanding: | |||
Weighted Average Number of Shares Outstanding, Basic | 9 | 9 | |
Weighted Average Number of Shares Outstanding, Diluted | 9 | 9 | |
Successor [Member] | Separative Work Units [Member] | |||
Revenue: | |||
Revenue, Goods | $ 101 | ||
Successor [Member] | Uranium [Member] | |||
Revenue: | |||
Revenue, Goods | $ 0.8 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2015 | |
Income tax expense related to items of other comprehensive income | $ (2.4) | ||
Predecessor [Member] | |||
Net income (loss) | $ 340.1 | ||
Prior service credit arising during the period | 0 | ||
Curtailment (gain) recognized in net income (loss) | (2.2) | ||
Amortization of actuarial (gains) losses, net | 0.9 | ||
Amortization of prior service costs (credits) | (0.3) | ||
Other comprehensive income (loss), before tax | (1.6) | ||
Income tax expense related to items of other comprehensive income | 0 | ||
Other comprehensive income (loss), net of tax | (1.6) | ||
Elimination of Predecessor Company accumulated other comprehensive loss | 121.7 | ||
Comprehensive income (loss) | $ 460.2 | ||
Successor [Member] | |||
Net income (loss) | (42.3) | $ (187.4) | |
Prior service credit arising during the period | 6.8 | 0 | |
Curtailment (gain) recognized in net income (loss) | 0 | 0 | |
Amortization of actuarial (gains) losses, net | 0 | 0 | |
Amortization of prior service costs (credits) | 0 | (0.3) | |
Other comprehensive income (loss), before tax | 6.8 | (0.3) | |
Income tax expense related to items of other comprehensive income | (2.4) | 0 | |
Other comprehensive income (loss), net of tax | 4.4 | (0.3) | |
Elimination of Predecessor Company accumulated other comprehensive loss | 0 | 0 | |
Comprehensive income (loss) | $ (37.9) | $ (187.7) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2015 | |
Adjustments to reconcile net income (loss) to net cash (used in) operating activities: | |||
Impairment of excess reorganization value | $ 137,200,000 | ||
Immediate recognition of net actuarial losses | (29,600,000) | ||
Cash Flows Used in Financing Activities | |||
Cash and Cash Equivalents at Beginning of Period | 218,800,000 | ||
Cash and Cash Equivalents at End of Period | $ 218,800,000 | 234,000,000 | |
Predecessor [Member] | |||
Cash Flows from Operating Activities | |||
Net income (loss) | $ 340,100,000 | ||
Adjustments to reconcile net income (loss) to net cash (used in) operating activities: | |||
Depreciation and amortization | 4,200,000 | ||
Impairment of excess reorganization value | 0 | ||
Immediate recognition of net actuarial losses | 0 | ||
Interest on paid-in-kind toggle notes | 0 | ||
Gain on sale of assets | (5,700,000) | ||
Non-cash reorganization items | (449,200,000) | ||
Changes in operating assets and liabilities: | |||
Accounts receivable – (increase) decrease | 79,000,000 | ||
Inventories, net – (increase) decrease | 177,000,000 | ||
Payables under SWU purchase agreements – increase (decrease) | (293,400,000) | ||
Deferred revenue, net of deferred costs – increase (decrease) | (9,700,000) | ||
Accounts payable and other liabilities – (decrease) | (58,900,000) | ||
Other, net | (3,700,000) | ||
Net Cash (Used in) Operating Activities | (220,300,000) | ||
Cash Flows Provided by Investing Activities | |||
Deposits for surety bonds - net (increase) decrease | 3,900,000 | ||
Proceeds from sales of assets | 8,400,000 | ||
Capital expenditures | 0 | ||
Net Cash Provided by Investing Activities | 12,300,000 | ||
Cash Flows Used in Financing Activities | |||
Payments for deferred financing costs | (700,000) | ||
Common stock issued (purchased), net | 100,000 | ||
Net Cash (Used in) Financing Activities | (800,000) | ||
Net (Decrease) | (208,800,000) | ||
Cash and Cash Equivalents at Beginning of Period | 105,400,000 | 314,200,000 | |
Cash and Cash Equivalents at End of Period | 105,400,000 | ||
Supplemental Cash Flow Information: | |||
Interest paid | 15,900,000 | ||
Income taxes paid | 0 | ||
Conversion of interest payable-in-kind to long-term debt | 0 | ||
Successor [Member] | |||
Cash Flows from Operating Activities | |||
Net income (loss) | (42,300,000) | (187,400,000) | |
Adjustments to reconcile net income (loss) to net cash (used in) operating activities: | |||
Depreciation and amortization | 4,500,000 | 13,800,000 | |
Impairment of excess reorganization value | 0 | 137,200,000 | |
Immediate recognition of net actuarial losses | 10,400,000 | (29,600,000) | |
Interest on paid-in-kind toggle notes | 0 | 5,400,000 | |
Gain on sale of assets | (1,300,000) | (2,100,000) | |
Non-cash reorganization items | 0 | 0 | |
Changes in operating assets and liabilities: | |||
Accounts receivable – (increase) decrease | 31,000,000 | 29,300,000 | |
Inventories, net – (increase) decrease | 23,000,000 | 90,900,000 | |
Payables under SWU purchase agreements – increase (decrease) | 92,800,000 | (54,700,000) | |
Deferred revenue, net of deferred costs – increase (decrease) | 17,300,000 | 2,600,000 | |
Accounts payable and other liabilities – (decrease) | (26,500,000) | (1,800,000) | |
Other, net | 1,300,000 | 4,900,000 | |
Net Cash (Used in) Operating Activities | 110,200,000 | 8,500,000 | |
Cash Flows Provided by Investing Activities | |||
Deposits for surety bonds - net (increase) decrease | 1,100,000 | 5,000,000 | |
Proceeds from sales of assets | 2,100,000 | 2,000,000 | |
Capital expenditures | 0 | (300,000) | |
Net Cash Provided by Investing Activities | 3,200,000 | 6,700,000 | |
Cash Flows Used in Financing Activities | |||
Payments for deferred financing costs | 0 | 0 | |
Common stock issued (purchased), net | 0 | 0 | |
Net Cash (Used in) Financing Activities | 0 | 0 | |
Net (Decrease) | 113,400,000 | 15,200,000 | |
Cash and Cash Equivalents at Beginning of Period | 105,400,000 | 218,800,000 | |
Cash and Cash Equivalents at End of Period | 218,800,000 | $ 105,400,000 | 234,000,000 |
Supplemental Cash Flow Information: | |||
Interest paid | 0 | 12,200,000 | |
Income taxes paid | 0 | 300,000 | |
Conversion of interest payable-in-kind to long-term debt | $ 0 | $ 1,800,000 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Millions | Total | Common Stock Par Value $.10 per Share [Member] | Excess of Capital over Par Value [Member] | Retained Earnings (Deficit) [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Beginning Balance (Predecessor [Member]) at Dec. 31, 2013 | $ (458.2) | $ 0.5 | $ 1,216.4 | $ (1,520.7) | $ (34.3) | $ (120.1) |
Net income (loss) | Predecessor [Member] | 340.1 | |||||
Ending Balance (Predecessor [Member]) at Sep. 30, 2014 | 59.3 | 0.9 | 58.4 | 0 | 0 | 0 |
Ending Balance (Successor [Member]) at Sep. 30, 2014 | 59.3 | 0.9 | 58.4 | 0 | 0 | 0 |
Beginning Balance (Predecessor [Member]) at Dec. 31, 2013 | (458.2) | 0.5 | 1,216.4 | (1,520.7) | (34.3) | (120.1) |
Net income (loss) | Predecessor [Member] | 340.1 | 340.1 | ||||
Other comprehensive income, net of tax (Note 14) | Predecessor [Member] | (1.6) | (1.6) | ||||
Restricted and other common stock issued, net of amortization | Predecessor [Member] | 1 | 1.1 | 0.1 | |||
Surrender of restricted stock | Predecessor [Member] | (4.4) | (4.4) | ||||
Elimination of Predecessor Company equity | Predecessor [Member] | 118.7 | (0.5) | (1,221.9) | 1,180.6 | 38.8 | 121.7 |
Issuance of Successor Company common stock and excess of capital over par value | Predecessor [Member] | 59.3 | 0.9 | 58.4 | 0 | 0 | 0 |
Ending Balance (Successor [Member]) at Dec. 31, 2014 | 21.6 | 0.9 | 58.6 | (42.3) | 0 | 4.4 |
Ending Balance at Dec. 31, 2014 | 21.6 | |||||
Beginning Balance (Predecessor [Member]) at Sep. 30, 2014 | 59.3 | 0.9 | 58.4 | 0 | 0 | 0 |
Beginning Balance (Successor [Member]) at Sep. 30, 2014 | 59.3 | 0.9 | 58.4 | 0 | 0 | 0 |
Net income (loss) | Successor [Member] | (42.3) | (42.3) | ||||
Other comprehensive income, net of tax (Note 14) | Successor [Member] | 4.4 | 4.4 | ||||
Restricted and other common stock issued, net of amortization | Successor [Member] | 0.2 | 0.2 | ||||
Ending Balance (Successor [Member]) at Dec. 31, 2014 | 21.6 | 0.9 | 58.6 | (42.3) | 0 | 4.4 |
Ending Balance at Dec. 31, 2014 | 21.6 | |||||
Net income (loss) | Successor [Member] | (187.4) | |||||
Other comprehensive income, net of tax (Note 14) | Successor [Member] | (0.3) | (0.3) | ||||
Restricted and other common stock issued, net of amortization | Successor [Member] | 0.4 | 0.4 | ||||
Ending Balance (Successor [Member]) at Dec. 31, 2015 | (165.7) | $ 0.9 | $ 59 | $ (229.7) | $ 0 | $ 4.1 |
Ending Balance at Dec. 31, 2015 | $ (165.7) |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION On March 5, 2014, USEC Inc. filed a voluntary petition for relief (the “Bankruptcy Filing”) under Chapter 11 of Title 11 of the United States Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”). The Bankruptcy Filing was “pre-arranged” and included the filing of a proposed Plan of Reorganization (the “Plan of Reorganization”) supported by certain holders of the claims and interests impaired under the Plan of Reorganization. On August 18, 2014, the Company announced that the Plan of Reorganization was accepted by more than 99% in both value and number of votes cast of holders of its convertible notes and that both holders of the Company’s preferred equity voted in favor of the Plan of Reorganization. On September 5, 2014, the Bankruptcy Court entered an order approving and confirming the Plan of Reorganization. On September 30, 2014 (the “Effective Date”), the Company satisfied the conditions of the Plan of Reorganization and the Plan of Reorganization became effective. On the Effective Date, USEC Inc. changed its name to Centrus Energy Corp. (“Centrus” or the “Company”). In accordance with Accounting Standards Codification Topic 852, Reorganizations , Centrus adopted fresh start accounting upon emergence from Chapter 11 bankruptcy resulting in Centrus becoming a new entity for financial reporting purposes. References to “Successor” or “Successor Company” relate to the financial position of the reorganized Centrus as of and subsequent to September 30, 2014 and results of operations subsequent to September 30, 2014. References to “Predecessor” or “Predecessor Company” relate to the Company prior to September 30, 2014. As a result of the application of fresh start accounting and the effects of the implementation of the Plan of Reorganization, the consolidated financial statements on or after September 30, 2014 are not comparable to consolidated financial statements prior to that date. Refer to Note 21, Fresh Start Accounting , for additional information. Expenses, gains and losses directly associated with reorganization proceedings are reported as Reorganization Items, Net , in the accompanying consolidated statement of operations. Centrus is a supplier of low-enriched uranium (“LEU”) for nuclear power plants. The benefits of the balance sheet restructuring provide stability and continuity for Centrus’ LEU commercial operations, conducted primarily through its wholly owned subsidiary United States Enrichment Corporation (“Enrichment Corp.”). Moving forward, Centrus expects to continue Enrichment Corp.’s operations by selling its current inventory quantities, as well as commercial LEU purchased from Russia and from other suppliers, to customers under contract and through new commercial sales. The consolidated financial statements include the accounts of Centrus Energy Corp., its principal subsidiary Enrichment Corp., and its other subsidiaries. All material intercompany transactions are eliminated. Certain amounts in the consolidated financial statements have been reclassified to conform to the current presentation. |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Cash and Cash Equivalents Cash and cash equivalents include short-term or highly liquid assets with original maturities of three months or less. Inventories and Inventories Owed to Customers and Suppliers LEU consists of two components: separative work units (“SWU”) and uranium. SWU is a standard unit of measurement that represents the effort required to transform a given amount of natural uranium into two components: enriched uranium having a higher percentage of U 235 and depleted uranium having a lower percentage of U 235 . The SWU contained in LEU is calculated using an industry standard formula based on the physics of enrichment. The amount of enrichment deemed to be contained in LEU under this formula is commonly referred to as its SWU component and the quantity of natural uranium deemed to be used in the production of LEU under this formula is referred to as its uranium or “feed” component. SWU and uranium inventory costs are determined using the monthly moving average cost method. SWU costs for the Successor Company are based on SWU purchase costs and the inventory cost basis as of the Effective Date. SWU inventory costs were increased by $35.4 million as of the Effective Date to reflect fresh start accounting adjustments as described in Note 21, Fresh Start Accounting . Centrus acquires Russian LEU under the terms of a commercial agreement with Russia (the “Russian Supply Agreement”). Deliveries under the supply agreement are expected to continue through 2026. The cost of the SWU component of LEU acquired from Russia is recorded at the purchase cost plus related shipping costs. Inventories of SWU and uranium are valued at the lower of cost or net realizable value (“NRV”). NRV is the estimated selling price in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation. The estimated selling price for SWU and uranium is based on the pricing terms of contracts in the Company’s sales order book, and, for uranium not under contract, the estimated selling price is based primarily on published price indicators at the balance sheet date. Inventories owed to customers and suppliers, included in current liabilities, consist primarily of SWU and uranium inventories owed to fabricators. Fabricators process LEU into fuel for use in nuclear reactors. Under inventory optimization arrangements between Centrus and domestic fabricators, fabricators order quantities of LEU from Centrus based on scheduled or anticipated orders from utility customers for deliveries in future periods. As delivery obligations under actual customer orders arise, Centrus satisfies these obligations by arranging for the transfer to the customer of title to the specified quantity of LEU at the fabricator. Centrus’ balances of SWU and uranium vary over time based on the timing and size of the fabricator’s LEU orders from Centrus and the fabricator’s needs for working stock of LEU. Balances can be positive or negative at the discretion of the fabricator. Fabricators have other inventory supplies and, where a fabricator has elected to order less material from Centrus than Centrus is required to deliver to its customers at the fabricator, the fabricator will use these other inventories to satisfy Centrus’ customer order obligations on Centrus’ behalf. In such cases, the transfer of title of LEU from Centrus to the customer results in quantities of SWU and uranium owed by Centrus to the fabricator. The amounts of SWU and uranium owed to fabricators are satisfied as future deliveries of LEU to fabricators are made. Deferred Taxes Centrus follows the asset and liability approach to account for deferred taxes. Deferred tax assets and liabilities are recognized for the anticipated future tax consequences of temporary differences between the balance sheet carrying amounts of assets and liabilities and their respective tax bases. Deferred taxes are based on income tax rates in effect for the years in which temporary differences are expected to reverse. The effect on deferred taxes of a change in income tax rates is recognized in income when the change in rates is enacted in the law. A valuation allowance is provided if it is more likely than not that some or all of the deferred tax assets may not be realized. Deferred tax assets and liabilities completely offset, resulting in a balance of $0 on the Consolidated Balance Sheets as of December 31, 2015 and December 31, 2014. Additional details are provided below under New Accounting Standards and in Note 14, Income Taxes . Property, Plant and Equipment Property, plant and equipment are recorded at acquisition cost. Leasehold improvements and machinery and equipment are depreciated on a straight line basis over the shorter of the useful life of the assets or the lease term, if applicable. Intangible Assets Centrus has intangible assets resulting from fresh start accounting as a result of emergence from Chapter 11 bankruptcy. Centrus evaluates the carrying value of the intangible assets by performing impairment tests whenever adverse conditions or changes in circumstances indicate a possible impairment loss. The identifiable intangible assets relate to the sales order book and customer relationships. The order book intangible asset is amortized as the order book is reduced, principally as result of deliveries to customers. The customer relationships intangible asset is amortized using the straight-line method over the estimated average useful life of 15 years. Centrus evaluates the carrying value of the nonidentifiable excess reorganization value (or “goodwill”, as defined by the accounting standards) by performing an impairment test on an annual basis or whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. The excess reorganization value was tested for impairment and was determined to be fully impaired as of October 1, 2015. An impairment charge was recognized for the carrying value of the excess reorganization value. Additional details are provided in Note 8, Intangible Assets . Financial Instruments and Fair Value Measurement Accounting standards define fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, consideration is given to the principal or most advantageous market and assumptions that market participants would use when pricing the asset or liability. Pursuant to accounting standards, Centrus’ paid-in-kind toggle notes are recorded at face value and the fair value is disclosed. The estimated fair value of the paid-in-kind toggle notes is based on the trading price at the balance sheet date. Financing costs are deferred and amortized over the life of the instrument. The balance sheet carrying amounts for cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, and payables under SWU purchase agreements approximate fair value because of the short-term nature of the instruments. Concentrations of Credit Risk Credit risk could result from the possibility of a customer failing to perform or pay according to the terms of a contract. Extension of credit is based on an evaluation of each customer’s financial condition. Centrus regularly monitors credit risk exposure and takes steps to mitigate the likelihood of such exposure resulting in a loss. SWU and Uranium Revenue Revenue is derived from sales of the SWU component of LEU, from sales of both the SWU and uranium components of LEU, and from sales of uranium. Revenue is recognized at the time LEU or uranium is delivered under the terms of contracts with domestic and international electric utility customers. Most customers take title and delivery of LEU at fuel fabricators. Centrus ships LEU to nuclear fuel fabricators for scheduled or anticipated orders from utility customers. Based on customer orders, Centrus arranges for the transfer of title of LEU from Centrus to the customer for the specified quantity of LEU at the fuel fabricator. Revenue is recognized when delivery of LEU to the customer occurs at the fuel fabricator. In a number of sales transactions, title to uranium or LEU is transferred to the customer and Centrus receives payment under normal credit terms without physically delivering the uranium or LEU to the customer. This may occur because the terms of the agreement require Centrus to hold the uranium to which the customer has title, or because the customer encounters brief delays in taking delivery of LEU from Centrus. In such cases, recognition of revenue and related cost of sales does not occur at the time title to uranium or LEU transfers to the customer but instead are deferred until LEU to which the customer has title is physically delivered. Contract Services Revenue From May 2014 to September 2015, the contract services segment included revenue and cost of sales for American Centrifuge work Centrus performed under an agreement with UT-Battelle, LLC (“UT-Battelle”), the management and operating contractor for Oak Ridge National Laboratory (“ORNL”), for continued cascade operations and continuation of core American Centrifuge research and technology activities in Oak Ridge, Tennessee and Piketon, Ohio. Spending levels were consistent with the fixed funding levels. The contract services segment also includes limited services provided by Centrus to the U.S. Department of Energy (“DOE”) and its contractors at the Portsmouth site related to facilities we continue to lease for the American Centrifuge Plant and formerly at the Paducah Gaseous Diffusion Plant (the “Paducah GDP”). Contract services revenue includes billings for fees and reimbursements for allowable costs that are determined in accordance with the terms of the underlying contracts. Revenue is recognized as work is performed and as fees are earned. Allowable costs include direct costs as well as allocations of indirect plant and corporate overhead costs determined in accordance with government cost accounting standards. Amounts representing contract change orders or final billing rates based on incurred costs are accrued and included in revenue when they can be reliably estimated and realization is probable. Allowable costs are subject to audit by the Defense Contract Audit Agency (“DCAA”), or such other entity that DOE authorizes to conduct the audit. The final settlement of amounts submitted by Centrus for reimbursement is subject to Federal Acquisition Regulations requiring the DOE contracting officer to conduct negotiations and prepare a written indirect cost agreement. Revenue resulting from final billing rates is recognized upon completion of the government audits and notice by DOE authorizing final billing. DOE historically has not approved Centrus’ provisional billing rates and has not completed audits of Centrus’ incurred cost submissions and authorized final payments in a timely manner. Additional details are provided in Note 5, Receivables . There is the potential for additional revenue to be recognized, based on the outcome of DOE reviews and audits, as the result of the release of previously established receivable related reserves. However, since these periods have not been finalized with DOE, uncertainty exists and Centrus has not yet recognized this additional revenue. Advanced Technology Costs American Centrifuge costs incurred by the Company that are outside of our contract work with UT-Battelle are included in advanced technology costs, including certain demobilization and maintenance costs. Refer to Note 4, Advanced Technology Costs and Other Income, and Note 17, Commitments and Contingencies, for further details regarding the American Centrifuge project. Although the Company’s contract with UT-Battelle expired September 30, 2015, Centrus continued to perform work at the expected reduced scope as the parties worked toward a successor agreement. Costs for such work are included in advanced technology costs in the fourth quarter of 2015. We intend to enter into a new contract with UT-Battelle in 2016. Pension and Postretirement Health and Life Benefit Plans The Company provides retirement benefits to certain employees and retirees under defined benefit pension plans and postretirement health and life benefit plans. The valuation of benefit obligations and costs is based on provisions of the plans and actuarial assumptions that involve judgments and estimates. Plan assets and benefit obligations are remeasured each year as of the balance sheet date, or when lump-sum payments exceed certain levels, resulting in differences between actual and projected results. Upon the adoption of fresh start accounting, the Successor Company adopted an accounting policy to immediately recognize these actuarial gains and losses in the statement of operations. The immediate recognition in the statement of operations is intended to increase transparency regarding the impacts of changes in plan assets and benefit obligations. The Predecessor Company recognized these actuarial gains and losses as a component of stockholders’ equity and generally amortized them into operating results over the average future service period of the active employees of these plans or the average future lifetime of plan participants for inactive plans. Stock-Based Compensation Centrus has a stock-based compensation plan which authorizes the issuance of common stock to the Company’s employees, officers, directors and other individuals providing services to the Company or its affiliates pursuant to options, stock appreciation rights, restricted stock units, restricted stock, performance awards, dividend equivalent rights and other stock based awards. Stock-based compensation cost is measured at the grant date based on the fair value of the award. The cost is recognized over the requisite service period on a straight-line basis over the vesting period. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect reported amounts presented and disclosed in the consolidated financial statements. Significant estimates and judgments include, but are not limited to, asset valuations, American Centrifuge decontamination and decommissioning obligations, pension and postretirement health and life benefit costs and obligations, the tax bases of assets and liabilities, the future recoverability of deferred tax assets, and determination of the valuation allowance for deferred tax assets. Actual results may differ from such estimates, and estimates may change if the underlying conditions or assumptions change. New Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued comprehensive new guidance for revenue recognition. The core principle of the new standard is that revenue should be recognized when an entity transfers promised goods or services to customers in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. The new standard will supersede current guidance in effect and may require the use of more judgment and estimates, including estimating the amount of variable revenue to recognize over each identified performance obligation. The new standard requires additional disclosures to describe the nature, amount and timing of revenue and cash flows arising from contracts. In August 2015, the FASB issued guidance deferring the effective date of the new revenue recognition standard by one year. The new standard will become effective for Centrus beginning with the first quarter of 2018 and can be adopted either retrospectively to each prior reporting period presented or as a cumulative effect adjustment as of the date of adoption. Early adoption is permitted as of the first quarter of 2017. Centrus is evaluating the impact of adopting this new guidance on its consolidated financial statements. In August 2014, the FASB issued guidance requiring management to assess an entity’s ability to continue as a going concern and to provide related disclosures in certain circumstances. The new standard is effective for annual and interim periods beginning after December 15, 2016. Early adoption is permitted. The implementation of the new standard is not expected to have a material impact on Centrus’ consolidated financial statements. In April 2015, the FASB issued guidance to simplify the presentation of debt issuance costs. The new guidance requires the presentation of debt issuance costs in the balance sheet as a reduction in the carrying amount of the related debt liability instead of a deferred charge asset. The new guidance requires retrospective application and is effective for Centrus beginning with the first quarter of 2016. The implementation of the new standard will not have a material impact on Centrus’ consolidated financial statements. In May 2015, the FASB issued guidance to eliminate the requirement to categorize investments in the fair value hierarchy table for which the fair value is measured at net asset value (“NAV”) per share as a practical expedient. Centrus adopted the new guidance as reflected in the fair value disclosures in Notes 11 and 12. Adoption of the new guidance did not affect the Company’s financial condition, results of operations, or cash flows. In July 2015, the FASB issued guidance that simplifies the subsequent measurement of inventories by replacing the existing valuation test (lower of cost or market) with a lower of cost or net realizable value (“NRV”) test. The new test is applicable for certain inventory costing methods including the monthly moving average cost method used by Centrus. NRV is the estimated selling price in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation. Under former guidance, NRV was one of several determinations used to assess market values. For Centrus, NRV has been the determining factor in assessing the market value for the Company’s principal inventories. Centrus adopted the new guidance in the fourth quarter of 2015 and there was no effect on the Company’s financial condition, results of operations, or cash flows. In November 2015, the FASB issued guidance to simplify the presentation of deferred tax assets and liabilities. The Company elected early application and the new guidance has been applied to all periods presented in the current Annual Report. To simplify presentation, the new guidance requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. The Company’s deferred tax assets and liabilities completely offset, resulting in a balance of $0 on the Consolidated Balance Sheets as of December 31, 2015 and December 31, 2014. Additional details are provided in Note 14, Income Taxes . In February 2016, the FASB issued guidance that requires lessees to recognize a right-of-use asset and lease liability on the balance sheet for all leases with terms longer than 12 months. The new standard is effective for annual and interim periods beginning after December 15, 2018, and requires expanded disclosures of lease arrangements. Centrus is evaluating the impact of adopting this new guidance on its consolidated financial statements. |
Special Charges
Special Charges | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Special Charges | SPECIAL CHARGES FOR WORKFORCE REDUCTIONS Centrus notified its American Centrifuge employees in September 2015 of possible layoffs beginning in November 2015 as a result of DOE’s decision to reduce funding for advanced uranium enrichment centrifuge research under the Company’s contract with UT-Battelle. Based on the level of funding reduction, Centrus incurred a special charge of $8.7 million in the third quarter of 2015 for estimated termination benefits consisting primarily of payments under its pre-existing severance plan. Centrus expects to make payments for these workforce reductions through early 2017. In addition, the cessation of enrichment at the Paducah GDP and evolving business needs have resulted in workforce reductions since July 2013. Special charges include related termination benefits less severance paid by the Company and invoiced to DOE for its share of employee severance pursuant to the USEC Privatization Act. A summary of special charges and changes in the related balance sheet accounts follows (in millions): Predecessor Successor Liability Balance to Be Paid, Dec. 31, 2013 Nine Months Ended Sep. 30, 2014 Liability Balance to Be Paid, Sep. 30, 2014 Three Months Ended Dec. 31, 2014 Liability Balance to Be Paid, Dec. 31, 2014 Special Charges Paid Special Charges Paid Workforce reductions, primarily severance payments $ 21.2 $ 4.5 $ (13.6 ) $ 12.1 $ 3.7 $ (13.4 ) $ 2.4 Less: Amounts billed to DOE (2.4 ) (1.6 ) $ 2.1 $ 2.1 Successor Liability Balance to Be Paid, Dec. 31, 2014 2015 Liability Balance to Be Paid, Dec. 31, 2015 Special Charges Paid Workforce reductions, primarily severance payments $ 2.4 $ 13.6 $ (7.3 ) $ 8.7 Less: Amounts billed to DOE (0.4 ) $ 13.2 |
Advanced Technology Costs and O
Advanced Technology Costs and Other Income | 12 Months Ended |
Dec. 31, 2015 | |
Research and Development [Abstract] | |
Advanced Technology Costs and Other Income | ADVANCED TECHNOLOGY COSTS AND OTHER INCOME From June 2012 through April 2014, the Company performed work under the June 2012 cooperative agreement with DOE (the “Cooperative Agreement”) for the American Centrifuge technology with DOE providing cost-share funding. The Cooperative Agreement expired in accordance with its terms on April 30, 2014. In 2014, advanced technology costs included costs for work performed under the Cooperative Agreement and DOE’s cost share was recognized as other income. Revenue and cost of sales for work that Centrus performed from May 2014 to September 2015 as a contractor to UT-Battelle are reported in the contract services segment. American Centrifuge costs incurred by the Company that were outside of the UT-Battelle contract are included in advanced technology costs, including certain demobilization and maintenance costs. Such costs totaled $18.5 million in 2015, $4.7 million in the three months ended December 31, 2014 and $12.3 million in the nine months ended September 30, 2014. Although the Company’s contract with UT-Battelle expired September 30, 2015, the Centrus continued to perform work of similar scope in the fourth quarter of 2015 as the parties worked toward a successor agreement. Costs for such work totaled $7.7 million and are included in advanced technology costs. Advanced technology costs in 2015 included $6.8 million for an increase to the liability for the decontamination and decommissioning (“D&D”) of the Piketon facility based on updated cost projections. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2015 | |
Accounts Receivable, Net, Current [Abstract] | |
Accounts Receivable | RECEIVABLES December 31, 2015 2014 (millions) Utility customers and other $ 24.7 $ 36.3 Contract services, primarily DOE 1.8 22.6 Accounts receivable, net $ 26.5 $ 58.9 Accounts receivable are net of valuation allowances and allowances for doubtful accounts totaling $0 as of December 31, 2015 and $0.6 million as of December 31, 2014. Certain overdue receivables from DOE are included in other long-term assets based on the extended timeframe expected to resolve claims for payment. Unpaid invoices to DOE totaled approximately $78 million as of December 31, 2015 and $75 million as of December 31, 2014 related to filed claims. Due to the lack of a resolution with DOE and uncertainty regarding the timing and amount of future collections, the long-term receivable for accounting purposes is $23.0 million as of December 31, 2015, including updated submissions for final indirect rates and incurred costs, as well as invoices for interest. The long-term receivable as of December 31, 2014 was $19.9 million . Centrus believes that DOE has failed to establish appropriate provisional billing and final indirect cost rates on a timely basis and the Company has filed claims with DOE for payment under the Contract Disputes Act (“CDA”). DOE denied the Company’s claims for payment of $38.0 million for the periods through 2011, and on May 30, 2013, the Company appealed DOE’s denial of its claims to the U.S. Court of Federal Claims. The Company has been able to reach a resolution on a portion of the amounts claimed, and DOE has now paid approximately $6.5 million of claims for work performed in 2003 through 2006. The Court dismissed claims against DOE related to approximately $3.8 million due from prime subcontractors to DOE, and the Company is pursuing payment of such claims directly from the DOE subcontractors. Payments of $0.4 million were received in the fourth quarter of 2015. In December 2012, the Company invoiced DOE for $42.8 million , representing its share of pension and postretirement benefits costs related to the transition of Portsmouth site employees to DOE’s D&D contractor, as permitted by CAS and based on CAS calculation methodology. DOE denied payment on this invoice in January 2013, and subsequent to providing additional information, as requested, to DOE, the Company submitted a claim on August 30, 2013 under the CDA for payment of the $42.8 million. On August 27, 2014, the DOE contracting officer denied the Company’s claim. As a result, Centrus filed a complaint with the U.S. Court of Federal Claims in January 2015, but there is no assurance the Company will be successful in its appeal. The Company has a full valuation allowance for this claim due to the lack of a resolution with DOE and uncertainty regarding the amounts owed and the timing of collection. The amounts owed by DOE may be more than the amounts the Company has invoiced to date. Further, on February 5, 2015, the Company filed claims with DOE for payment under the CDA for approximately $1.6 million related to services performed in 2013. On May 5, 2015, the Company filed a motion for summary judgment. In June 2015, the Company voluntarily dismissed the claim and received payment from DOE of the approximately $1.6 million . Centrus has unapplied payments from DOE that may be used, at DOE’s direction, (a) to pay for future services provided by the Company or (b) to reduce outstanding receivables balances due from DOE. A payments balance of $19.4 million as of December 31, 2015 and $19.6 million as of December 31, 2014 is included in other long-term liabilities pending resolution of the long-term receivables from DOE described above. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Inventory, Net [Abstract] | |
Inventories | INVENTORIES Centrus holds natural uranium and the uranium and SWU components of LEU at licensed locations. Components of inventories follow (in millions): December 31, 2015 December 31, 2014 Current Assets Current Liabilities (a) Inventories, Net Current Assets Current Liabilities (a) Inventories, Net Separative work units $ 221.5 $ 33.1 $ 188.4 $ 330.6 $ 76.6 $ 254.0 Uranium 97.5 73.7 23.8 131.4 82.3 49.1 Materials and supplies 0.2 — 0.2 0.2 — 0.2 $ 319.2 $ 106.8 $ 212.4 $ 462.2 $ 158.9 $ 303.3 (a) Inventories owed to customers and suppliers, included in current liabilities, consist primarily of SWU and uranium inventories owed to fabricators that process LEU into fuel for use in nuclear reactors. In 2015, Centrus exchanged SWU for uranium under a barter contract. SWU revenue of $8.3 million was recognized based on the fair market value of the uranium acquired in exchange for SWU delivered. Uranium Provided by Customers and Suppliers Centrus held uranium with estimated values of approximately $0.4 billion as of December 31, 2015 and $0.6 billion as of December 31, 2014 to which title was held by customers and suppliers and for which no assets or liabilities were recorded on the balance sheet. While in some cases Centrus sells both the SWU and uranium components of LEU to customers, utility customers typically provide uranium to Centrus as part of their enrichment contracts. Title to uranium provided by customers generally remains with the customer until delivery of LEU at which time title to LEU is transferred to the customer and title to uranium is transferred to Centrus. |
Property, Plant and Equipment P
Property, Plant and Equipment Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT December 31, 2015 2014 (millions) Property, plant and equipment, gross $ 4.0 $ 3.7 Accumulated depreciation (0.5 ) (0.2 ) Property, plant and equipment, net $ 3.5 $ 3.5 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | INTANGIBLE ASSETS Intangible assets originated from the Company’s reorganization and application of fresh start accounting as of September 30, 2014. The intangible assets represented the fair value adjustment to the assets and liabilities for the Company’s LEU segment. Identifiable Intangible Assets The identifiable intangible assets relate to the sales order book and customer relationships. The order book intangible asset is amortized as the order book valued at emergence is reduced, principally as a result of deliveries to customers. The customer relationships intangible asset is amortized using the straight-line method over the estimated average useful life of 15 years. Amortization expense is presented below gross profit on the consolidated statement of operations. Identifiable intangible assets consist of the following (in millions): December 31, 2015 December 31, 2014 Gross Carrying Amount Accumulated Amortization Net Amount Gross Carrying Amount Accumulated Amortization Net Amount Sales order book $ 54.6 $ 12.0 $ 42.6 $ 54.6 $ 3.2 $ 51.4 Customer relationships 68.9 5.7 63.2 68.9 1.1 67.8 $ 123.5 $ 17.7 $ 105.8 $ 123.5 $ 4.3 $ 119.2 The Company tested its identifiable intangible assets for impairment in conjunction with its annual test of excess reorganization value. The Company first performed a recoverability test of its identifiable intangible assets and determined there was no impairment as of October 1, 2015. The Company then tested excess reorganization value for impairment as described below in Excess Reorganization Value . The amount of amortization expense for intangible assets in each of the succeeding years is estimated to be as follows (in millions): 2016 $ 12.6 2017 11.0 2018 10.1 2019 8.6 2020 8.7 Thereafter 54.8 $ 105.8 Excess Reorganization Value The excess of the reorganization value over the fair value of identified tangible and intangible assets resulted in a nonamortizing intangible asset of $137.2 million as of September 30, 2014. The excess reorganization value (or “goodwill”, as defined by the accounting standards) was tested for impairment and was determined to be fully impaired as of October 1, 2015. The change in the carrying amount of the excess reorganization value for the year ended December 31, 2015 follows (in millions): Excess Reorganization Value Balance as of December 31, 2014 $ 137.2 Impairment (137.2 ) Balance as of December 31, 2015 $ — The Company tested the carrying amount of the excess reorganization value for impairment using the two-step quantitative approach outlined in Accounting Standards Codification Topic 350. The reporting unit for purposes of assigning and assessing the excess reorganization value is the Company’s LEU operations. In the first step of the analysis, the Company compared the estimated fair value of the reporting unit to its carrying value, including the excess reorganization value. The fair value of the reporting unit was estimated using an income approach and a market approach. Under the market approach, the excess reorganization value was tested for impairment against the fair value of the Company since the Company’s LEU operations comprise substantially all of the Company’s assets and liabilities and is the Company’s principal source of revenue. The carrying value of total invested capital exceeded the fair value of the Company’s PIK Toggle Notes and the Common Stock (plus an estimated premium for theoretically controlling all shares). The trading prices of the PIK Toggle Notes and the Common Stock are observable inputs and, as such, indicate a level of independent, objective evidence in the fair value hierarchy (i.e., level one inputs) established in the accounting guidance. Because of the results of the market approach, the Company performed the second step of the impairment analysis in order to determine the implied fair value of the reporting unit’s excess reorganization value. The implied fair value of the excess reorganization value represents the excess of fair value of the reporting unit over the fair value amounts assigned to all of the assets and liabilities of the reporting unit as if it were to be acquired in a business combination and the current fair value of the reporting unit (as calculated in the first step) was the purchase price. Any amount remaining after this allocation represents the implied fair value of the excess reorganization value. The implied fair value of the reporting unit’s excess reorganization value is then compared to the carrying value of the excess reorganization value and any excess of carrying value over the implied fair value represents a non-cash impairment charge. The Company assessed the fair value of its assets and liabilities for purposes of step two. The results of the second step analysis showed that the implied fair value of the excess reorganization value was zero for the reporting unit. Therefore, the Company recorded an impairment charge of $137.2 million in the fourth quarter of 2015. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Accounts Payable and Accrued Liabilities [Text Block] | ACCOUNTS PAYABLE AND ACCRUED LIABILITIES December 31, ($ millions) 2015 2014 Trade payables $ 5.4 $ 10.4 Compensation and benefits 19.2 22.4 Severance 8.7 2.4 Other accrued liabilities 11.5 15.3 $ 44.8 $ 50.5 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt | DEBT On the Effective Date and pursuant to the Plan of Reorganization, all of the Company’s convertible senior notes that were issued and outstanding immediately prior to the Effective Date were cancelled and the Company issued 8.0% paid-in-kind toggle notes (the “PIK Toggle Notes”) pursuant to the Indenture governing the PIK Toggle Notes entered into by the Company, Enrichment Corp., as guarantor and Delaware Trust Company, as trustee and collateral agent (the “Indenture”). The PIK Toggle Notes were issued in an initial aggregate principal amount of $240.4 million . No cash was received related to the issuance. The principal amount may be increased by any payment of interest in the form of PIK payments, as elected by the Company. The PIK Toggle Notes pay interest at a rate of 8.0% per annum. Interest is payable semi-annually in arrears based on a 360-day year consisting of twelve 30-day months. The Company elected to pay 3.0% per annum of interest due on the PIK Toggle Notes for the semi-annual interest periods ending on March 31, 2015 and September 30, 2015 in the form of PIK payments. As such, interest for 2015 was paid as $12.0 million in cash and $7.2 million in PIK payments, and the principal balance increased accordingly to $247.6 million . For any interest payment date from October 1, 2015 through the maturity of the PIK Toggle Notes, the Company has the option to pay up to 5.5% per annum of interest due on the PIK Toggle Notes in the form of PIK payments. For the semi-annual interest period ending March 31, 2016, the Company has elected to pay interest in the form of PIK payments at 5.5% per annum. As such, total interest payable at December 31, 2015 is $5.0 million of which $1.6 million is included in accounts payable and accrued liabilities and $3.4 million is included in other long-term liabilities. The PIK Toggle Notes will mature on September 30, 2019. However, the maturity date can be extended to September 30, 2024 upon the satisfaction of certain funding conditions described in the Indenture relating to the funding, under binding agreements, of (i) the American Centrifuge project or (ii) the implementation and deployment of a National Security Train Program utilizing American Centrifuge technology. The PIK Toggle Notes rank equally in right of payment with all existing and future unsubordinated indebtedness of the Company (other than the Issuer Senior Debt as defined below) and are senior in right of payment to all existing and future subordinated indebtedness of the Company. The PIK Toggle Notes are subordinated in right of payment to certain indebtedness and obligations of the Company described in the Indenture (the “Issuer Senior Debt”), including (i) any indebtedness of the Company under a future credit facility, (ii) obligations of, and claims against, the Company under any equity investment (or any commitment to make an equity investment) with respect to the financing of the American Centrifuge project, (iii) obligations of, and claims against, the Company under any arrangement with DOE, export credit agencies or any other lenders or insurers with respect to the financing or government support of the American Centrifuge project and (iv) indebtedness of the Company to Enrichment Corp. under the Centrus Intercompany Note. The PIK Toggle Notes are guaranteed and secured on a subordinated and limited basis by Enrichment Corp. The Enrichment Corp. guarantee ranks equally in right of payment with all existing and future unsubordinated indebtedness of Enrichment Corp. (other than the Designated Senior Claims as defined below) and is senior in right of payment to all existing and future subordinated indebtedness of Enrichment Corp. The Enrichment Corp. guarantee is subordinated in right of payment to certain obligations of, and claims against, Enrichment Corp. described in the Indenture (collectively, the “Designated Senior Claims”), including obligations and claims: • under a future credit facility; • held by or for the benefit of the Pension Benefit Guaranty Corporation (“PBGC”) pursuant to any settlement of any actual or alleged ERISA Section 4062(e) event; • held by any party with respect to any equity investment (or any commitment to make an equity investment) with respect to the financing of the American Centrifuge project; • held by DOE, export credit agencies or any other lenders or insurers with respect to the financing or government support of the American Centrifuge project; and • held by the U.S. government. The Company incurred offering expenses of $0.7 million related to the issuance of the PIK Toggle Notes. These costs are deferred and are being amortized on a straight-line basis, which approximates the effective interest method, over the life of the PIK Toggle Notes. The deferred financing cost balance, included in other long-term assets, was $0.6 million at December 31, 2015 and $0.7 million at December 31, 2014. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Pursuant to the accounting guidance for fair value measurements, fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, consideration is given to the principal or most advantageous market and assumptions that market participants would use when pricing the asset or liability. The accounting guidance establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value: • Level 1 – quoted prices in active markets for identical assets or liabilities. • Level 2 – inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. • Level 3 – unobservable inputs in which little or no market data exists. Financial Instruments Recorded at Fair Value (in Millions) December 31, 2015 December 31, 2014 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 234.0 — — $ 234.0 $ 218.8 — — $ 218.8 Deferred compensation asset (a) — $ 1.5 — $ 1.5 — $ 3.2 — $ 3.2 Liabilities: Deferred compensation obligation (a) — 1.4 — 1.4 — 3.0 — 3.0 (a) The deferred compensation obligation represents the balance of deferred compensation plus net investment earnings. The deferred compensation plan is informally funded through a rabbi trust using variable universal life insurance. The cash surrender value of the life insurance policies is designed to track the deemed investments of the plan participants. Investment crediting options consist of institutional and retail investment funds. The deemed investments are classified within Level 2 of the valuation hierarchy because (i) of the indirect method of investing and (ii) unit prices of institutional funds are not quoted in active markets. There have been no transfers between Levels 1, 2 or 3 during the periods presented. Other Financial Instruments As of December 31, 2015 and December 31, 2014, the balance sheet carrying amounts for cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities (excluding the deferred compensation obligation described above), and payables under SWU purchase agreements approximate fair value because of the short-term nature of the instruments. The estimated fair value of the PIK Toggle Notes was $36.9 million at December 31, 2015 and $121.2 million at December 31, 2014 based on the most recent trading prices as of the balance sheet date (Level 1). |
Pension and Postretirement Heal
Pension and Postretirement Health and Life Benefits | 12 Months Ended |
Dec. 31, 2015 | |
General Discussion of Pension and Other Postretirement Benefits [Abstract] | |
Pension and Postretirement Health and Life Benefits | PENSION AND POSTRETIREMENT HEALTH AND LIFE BENEFITS There are approximately 5,000 employees and retirees covered by qualified defined benefit pension plans providing retirement benefits based on compensation and years of service, and approximately 4,000 employees, retirees and dependents covered by postretirement health and life benefit plans. DOE retained the obligation for postretirement health and life benefits for workers who retired prior to July 28, 1998. Pursuant to the SERPs and the pension restoration plan, Centrus provides certain executive officers additional retirement benefits in excess of qualified plan limits imposed by tax law based on a targeted benefit objective. Employees hired on or after September 1, 2008 who are not covered by a collective bargaining agreement that provides for participation do not participate in a qualified defined benefit pension plan or the postretirement health and life benefit plan. Plan assets and benefit obligations are remeasured each year as of the balance sheet date resulting in differences between actual and projected results for the year. Historically, the Company recognized these actuarial gains and losses as a component of stockholders’ equity and generally amortized them into operating results over the average future service period of the active employees of these plans or the average future lifetime of plan participants for inactive plans. Upon the adoption of fresh start accounting, the Successor Company adopted an accounting policy to immediately recognize actuarial gains and losses in the statement of operations beginning in the fourth quarter of 2014. The immediate recognition in the statement of operations is intended to increase transparency into how movements in plan assets and benefit obligations impact financial results. As noted below, the impacts of plan amendments continue to be deferred as a component of stockholders’ equity and are recognized as net periodic benefit costs or credits in the statement of operations over time. Changes in the projected benefit obligations and plan assets and the funded status of the plans follow (in millions): Defined Benefit Pension Plans Postretirement Health and Life Benefit Plans Successor Predecessor Successor Predecessor Year Ended December 31, 2015 Three Months Ended December 31, 2014 Nine Months Ended September 30, 2014 Year Ended December 31, 2015 Three Months Ended December 31, 2014 Nine Months Ended September 30, 2014 Changes in Benefit Obligations: Obligations at beginning of period $ 961.4 $ 965.1 $ 907.4 $ 237.7 $ 240.4 $ 231.9 Actuarial (gains) losses, net (55.2 ) 18.7 96.0 (30.2 ) 4.3 8.3 Service costs 5.8 2.0 1.8 0.2 0.2 1.3 Interest costs 36.9 10.2 31.7 8.8 2.3 7.5 Benefits paid (62.1 ) (15.0 ) (44.3 ) (13.1 ) (2.8 ) (8.7 ) Lump sum benefits paid (50.6 ) (17.9 ) (24.7 ) — — — Less federal subsidy on benefits paid — — — 0.1 0.1 0.1 Administrative expenses paid (3.4 ) (1.7 ) N/A — N/A N/A Plan amendments — — — — (6.8 ) — Curtailments — — (2.8 ) — — — Obligations at end of period 832.8 961.4 965.1 203.5 237.7 240.4 Changes in Plan Assets: Fair value of plan assets at beginning of period 772.4 781.5 784.0 26.3 28.7 36.9 Actual return on plan assets (8.0 ) 25.5 46.2 0.4 0.7 0.5 Company contributions 8.0 — 20.3 0.2 (0.3 ) — Benefits paid (62.1 ) (15.0 ) (44.3 ) (13.1 ) (2.8 ) (8.7 ) Lump sum benefits paid (50.6 ) (17.9 ) (24.7 ) — — — Administrative expenses paid (3.4 ) (1.7 ) N/A N/A N/A N/A Fair value of plan assets at end of period 656.3 772.4 781.5 13.8 26.3 28.7 (Unfunded) status at end of period (176.5 ) (189.0 ) (183.6 ) (189.7 ) (211.4 ) (211.7 ) Amounts recognized in assets and liabilities: Current liabilities $ (4.2 ) $ (9.7 ) $ (9.5 ) (5.4 ) — — Noncurrent liabilities (172.3 ) (179.3 ) (174.1 ) (184.3 ) (211.4 ) (211.7 ) $ (176.5 ) $ (189.0 ) $ (183.6 ) $ (189.7 ) $ (211.4 ) $ (211.7 ) Amounts recognized in accumulated other comprehensive income (loss), pre-tax: Net actuarial loss $ — $ — $ 202.4 $ — $ — $ 22.0 Prior service cost (credit) — — — (0.3 ) (6.8 ) (1.8 ) $ — $ — $ 202.4 $ (0.3 ) $ (6.8 ) $ 20.2 Assumptions used to determine benefit obligations at end of period: Discount rate 4.5% 4.1% 4.3% 4.2% 3.8% 4.0% Compensation increases n/a n/a n/a n/a 2.0% 2.0% The net overfunded or underfunded status of the plans are recognized as either assets or liabilities in the balance sheet. The current liability reflects expected contributions for benefit payments for the non-qualified plans and the postretirement health and life benefit plans in the following year. The discount rates above, rounded to the nearest 0.1%, are the estimated rates at which the benefit obligations could be effectively settled on the measurement date and are based on yields of high quality fixed income investments whose cash flows match the timing and amount of expected benefit payments of the plans. The expected return on plan assets is based on the weighted average of long-term return expectations for the composition of the plans’ equity and debt securities. Expected returns on equity securities are based on historical long-term returns of equity markets. Expected returns on debt securities are based on the current interest rate environment. Historically, the Company developed the expected return assumption net of administrative expenses. The Successor Company modified its calculation methodology to develop the expected return assumption as gross of administrative expenses. A curtailment occurs when an employer eliminates accrual of pension benefits for some or all future services of a significant number of employees covered by the pension plan. When a curtailment occurs, plan assets and benefit obligations are remeasured. Projected benefit obligations are based on actuarial assumptions including possible future increases in compensation. Accumulated benefit obligations are based on actuarial assumptions but do not include possible future increases in compensation. Effective August 5, 2013, accrued benefits under the defined benefit pension plans are fixed and no longer increase to reflect changes in compensation or company service. Therefore, the accumulated benefit obligation equaled the projected benefit obligation of $832.8 million as of December 31, 2015 and $961.4 million as of December 31, 2014. As of December 31, 2015, none of Centrus’ plans had fair value of plan assets in excess of accumulated benefit obligations. Centrus has recognized $26.4 million in 2015 as net periodic benefit income in the consolidated statement of operations, consisting of $24.7 million of income included in cost of sales of the LEU segment and $1.7 million of income included in selling, general and administrative expenses. Out of this amount, $29.6 million reflects the immediate recognition of net actuarial income based on the remeasurement of assets and benefit obligations. The net gains for 2015 include the effect of an increase in the discount rates at December 31, 2015 compared to December 31, 2014, and changes in the mortality assumptions reflected in the Society of Actuaries’ MP-2015 adopted as of December 31, 2015. Actuarial gains and losses were recognized in the second, third and fourth quarters of 2015 as described in the following section. Lump Sum Payments and Settlement Accounting The defined benefit pension plans have been amended to allow a lump sum payment option to active employees who are not covered by a collective bargaining agreement at the Paducah GDP and who were terminated as a result of participation in a reduction in force from August 5, 2013 through December 31, 2015. The qualified defined benefit pension plans were further amended to allow a one-time voluntary election for a lump sum payment in December 2013 to certain former employees with deferred vested pension benefits. The level of lump-sum pension payments in the second and third quarters of 2015 resulted in the remeasurement of pension obligations under settlement accounting rules. The interim remeasurements were required when the payments exceeded, or were expected to exceed, the sum of the service cost and interest cost components of the annual net periodic benefit cost for each plan for the current year. Effective with the adoption of fresh start accounting as of September 30, 2014, Centrus immediately recognizes actuarial gains and losses in the statement of operations in the period in which they arise. The remeasurement of pension obligations as of June 30, 2015 under the non-qualified defined benefit pension plans and the Employees’ Retirement Plan of Centrus Energy Corp. resulted in a gain of $3.9 million included in selling, general and administrative expenses in the second quarter of 2015. The gain includes the effect of an increase in the discount rate used in the measurement of pension obligations from approximately 4.1% as of December 31, 2014 to approximately 4.5% as of June 30, 2015. Pension obligations under the Retirement Program Plan for Employees of United States Enrichment Corporation and the plans mentioned above were remeasured as of September 30, 2015, resulting in a loss of $21.6 million included in cost of sales of the LEU segment and a loss of $3.2 million included in selling, general and administrative expenses in the third quarter of 2015. The discount rate used in the measurement of pension obligations as of September 30, 2015 was approximately 4.4% . The losses also include the effect of actual investment experience for pension plan assets relative to the expected return assumption of 6.75% per year. The year-end remeasurements resulted in an actuarial gain of $48.8 million included in cost of sales of the LEU segment and a gain of $1.7 million included in selling, general and administrative expenses in the fourth quarter of 2015. The discount rate used in the measurement of pension obligations as of December 31, 2015 was approximately 4.5% for pension obligations and 4.2% for postretirement health and life benefit plans. The gains include the effect of a slight increase of the discount rates in the fourth quarter of 2015 from the last remeasurement of September 30, 2015, actual investment experience for pension plan assets relative to the expected return assumption of 6.75% per year, and changes in the mortality assumptions reflected in the Society of Actuaries’ MP-2015 adopted as of December 31, 2015. Emergence from Chapter 11 Bankruptcy In connection with Centrus’ emergence from Chapter 11 bankruptcy, plan assets and benefit obligations were remeasured as of September 30, 2014. The net effect of the remeasurement was an increase of $85.4 million on the net pension liability (unfunded status) and an increase of $9.2 million in the postretirement health and life benefit plans liability. The amount of Predecessor accumulated other comprehensive loss, net of tax, of $121.7 million was expensed as part of Reorganization Items, Net . Upon the Effective Date, the Company froze benefit accruals under the SERPs. The $2.2 million net credit to Reorganization Items, Net in the nine months ended September 30, 2014 reflects the curtailment related to the freeze of the benefits under these plans. Plan Amendment A post-65 Medicare Exchange was implemented by Centrus at December 31, 2014 for those previously covered by a collective bargaining agreement at the Paducah GDP. The transition to the post-65 Medicare Exchange was reflected as a plan amendment that reduced plan obligations by $6.8 million. This reduction in obligation is recognized in other comprehensive income as a prior service credit. The prior service credit is being amortized from accumulated other comprehensive income into net periodic pension benefit cost. Components of Net Periodic Benefit Costs and Other Amounts Recognized in Other Comprehensive Income (Loss) (in millions) Defined Benefit Pension Plans Postretirement Health and Life Benefit Plans Successor Predecessor Successor Predecessor Year Ended Dec. 31, 2015 Three Months Ended Dec. 31, 2014 Nine Months Ended Sep. 30, 2014 Year Ended Dec. 31, 2015 Three Months Ended Dec. 31, 2014 Nine Months Ended Sep. 30, 2014 Net Periodic Benefit Costs Service costs $ 5.8 $ 2.0 $ 1.8 $ 0.2 $ 0.2 $ 1.3 Interest costs 36.9 10.2 31.7 8.8 2.3 7.5 Expected return on plan assets (gains) (47.4 ) (13.1 ) (38.5 ) (0.8 ) (0.4 ) (1.5 ) Amortization of prior service costs (credits), net — — — (0.3 ) — (0.3 ) Amortization of actuarial (gains) losses, net 0.2 6.4 1.0 (29.8 ) 4.0 Curtailment loss (gain) — — (2.2 ) — — — Net periodic benefit costs $ (4.5 ) $ 5.5 $ (6.2 ) $ (21.9 ) $ 6.1 $ 7.0 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) Net valuation (gain) loss $ 0.2 $ 6.4 $ 85.4 $ (29.8 ) $ 4.0 $ 9.2 Net prior service cost (credit) — — — — (6.8 ) — Amortization of actuarial gains (losses), net (0.2 ) (6.4 ) 1.5 29.8 (4.0 ) — Amortization of prior service (costs) credits — — (0.2 ) 0.3 — 0.3 Total (gain) loss recognized in other comprehensive income (loss), pre-tax $ — $ — $ 86.7 $ 0.3 $ (6.8 ) $ 9.5 Total recognized in net periodic benefit costs (income) and other comprehensive income (loss), pre-tax $ (4.5 ) $ 5.5 $ 80.5 $ (21.6 ) $ (0.7 ) $ 16.5 Defined Benefit Pension Plans Postretirement Health and Life Benefit Plans Successor Predecessor Successor Predecessor Year Ended Dec. 31, 2015 Three Months Ended Dec. 31, 2014 Nine Months Ended Sep. 30, 2014 Year Ended Dec. 31, 2015 Three Months Ended Dec. 31, 2014 Nine Months Ended Sep. 30, 2014 Assumptions used to determine net periodic benefit costs: Discount rate 4.5% 4.1% 4.3% 4.2% 4.0% 4.0% Expected return on plan assets 6.8% 7.0% 6.8% 5.3% 5.8% 6.8% Compensation increases n/a n/a n/a 2.0% 2.0% 2.0% Net periodic benefit costs include service and interest costs of providing pension benefits that are accrued over the years employees render service. Prior service costs or credits are amortized over the employees’ average remaining years of service from age 40 until the date of full benefit eligibility or the average expected future lifetime of all plan participants, as applicable. Participants in the postretirement health and life benefit plan are generally eligible for benefits at retirement after age 50 with 10 years of continuous credited service at the time of retirement. Net periodic benefit costs are allocated to cost of sales for the LEU segment and to selling, general and administrative expense. Healthcare cost trend rates used to measure postretirement health benefit obligations follow: December 31, 2015 2014 Healthcare cost trend rate for the following year 7.5% 8% Long-term rate that the healthcare cost trend rate gradually declines to 5% 5% Year that the healthcare cost trend rate is expected to reach the long-term rate 2021 2021 A one-percentage-point change in the assumed healthcare cost trend rates would have an effect on the postretirement health benefit obligation and costs of the Successor Company, as follows (in millions): One Percentage Point Increase Decrease Postretirement health benefit obligation $ 5.2 $ (4.9 ) Net periodic benefit costs (service and interest cost components only) $ 0.3 $ (0.3 ) Benefit Plan Assets Independent advisors manage investment assets of Centrus’ defined benefit pension plans and postretirement health and life benefit plans. Centrus has the fiduciary responsibility for reviewing performance of the various investment advisors. The investment policy of the plans is to maximize portfolio returns within reasonable and prudent levels of risk in order to meet projected liabilities and maintain sufficient cash to make timely payments of all participant benefits. Risk is reduced by diversifying plan assets in a broad mix of asset classes and by following a strategic asset allocation approach. Asset classes and target weights are adjusted periodically to optimize the long-term portfolio risk/return tradeoff, to provide liquidity for benefit payments, and to align portfolio risk with the underlying obligations. The investment policy of the plans prohibits the use of leverage, direct investments in tangible assets, or any investment prohibited by applicable laws or regulations. The allocation of plan assets between equity and debt securities and the target allocation range by asset category follows: December 31, 2015 2014 2016 Target Defined Benefit Pension Plans: Equity securities 47 % 48 % 40 - 60% Debt securities 53 52 40 - 60 100 % 100 % Postretirement Health and Life Benefit Plans: Equity securities 64 % 65 % 55 - 75% Debt securities 36 35 25 - 45 100 % 100 % Plan assets are measured at fair value. Following are the plan investments as of December 31, 2015 and December 31, 2014 categorized by the fair value hierarchy levels described in Note 11, Fair Value Measurements, (in millions): Defined Benefit Pension Plans Level 1 Level 2 Level 3 Total 2015 2014 2015 2014 2015 2014 2015 2014 U.S. government securities $ — $ — $ 61.8 $ 81.5 $ — $ — $ 61.8 $ 81.5 Corporate debt — — 206.9 249.6 — — 206.9 249.6 Municipal bonds — — 6.8 8.1 — — 6.8 8.1 Fair value of investments by hierarchy level $ — $ — $ 275.5 $ 339.2 $ — $ — $ 275.5 $ 339.2 Investments measured at NAV (a) 377.2 429.1 Accrued interest receivable 3.5 4.0 Unsettled transactions 0.1 0.1 Plan assets $ 656.3 $ 772.4 Postretirement Health and Life Benefit Plans Level 1 Level 2 Level 3 Total 2015 2014 2015 2014 2015 2014 2015 2014 Money market funds $ 1.0 $ 0.8 $ — $ — $ — $ — $ 1.0 $ 0.8 Bond mutual funds 4.0 8.5 — — — — 4.0 8.5 Equity mutual funds 8.8 17.0 — — — — 8.8 17.0 Fair value of investments by hierarchy level $ 13.8 $ 26.3 $ — $ — $ — $ — $ 13.8 $ 26.3 (a) Equity, bond and money market investments held in collective trusts are valued based on the net asset value (“NAV”) provided by the administrator of the funds. The NAV for each fund is based on the underlying assets owned by the fund, less any expenses accrued against the fund, divided by the number of fund shares outstanding. While the underlying investments are traded on an exchange, the funds are not. Fair values for the collective trust investments are measured using the NAVs as a practical expedient and are not categorized in the fair value hierarchy. Level 1 assets consist of mutual funds and money market funds having a publicly available NAV. Level 2 assets include investments in U.S. government agency securities, corporate and municipal debt that are valued based on estimated prices using observable, market-based inputs. Benefit Plan Cash Flows Centrus expects to contribute $4.2 million to the non-qualified defined benefit pension plans and $5.4 million to the postretirement health and life benefit plans in 2016. The Company does not expect there to be a required contribution for the qualified defined benefit pension plans in 2016 and therefore does not expect to contribute in 2016. There is no required contribution for the postretirement health and life benefit plans under Employee Retirement Income Security Act (“ERISA”). Estimated future benefit plan payments follow (in millions): Defined Benefit Pension Plans Postretirement Health and Life Benefit Plans 2016 $ 65.8 $ 19.2 2017 60.5 20.0 2018 59.8 21.0 2019 57.4 19.8 2020 57.5 18.3 2021 to 2025 266.6 70.5 Other Plans Centrus sponsors a 401(k) defined contribution plan for employees. Employee contributions are matched at established rates. Amounts contributed are invested in a range of investment options available to participants and the funds are administered by an independent trustee. Matching cash contributions by the Company amounted to $3.0 million in 2015, $0.9 million in the three months ended December 31, 2014, and $4.1 million in the nine months ended September 30, 2014. The opportunity to participate in the Executive Deferred Compensation Plan was reactivated in June 2015 allowing deferrals beginning in July 2015. Enrollment in the plan had been suspended since January 2013. Qualified employees may defer compensation on a tax-deferred basis subject to plan limitations. Any matching contributions under the Company’s 401(k) plan that are foregone due to annual compensation limitations of the Internal Revenue Code are eligible to be received from the Company under the Executive Deferred Compensation Plan, provided that the employee deferred the maximum allowable pre-tax contribution in the 401(k) plan . Centrus matching contributions amounted to less than $0.1 million in 2015. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Share-based Compensation [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION On the Effective Date of the emergence from Chapter 11 bankruptcy, the Company adopted the 2014 Equity Incentive Plan which authorizes the issuance of up to 1,000,000 shares of Class A Common Stock to the Company’s employees, officers, directors and other individuals providing services to the Company or its affiliates pursuant to options, stock appreciation rights, restricted stock units, restricted stock, performance awards, dividend equivalent rights and other stock based awards, as well as cash based awards. On November 21, 2014, Centrus issued stock options to officers and restricted stock units to non-employee, independent directors in accordance with the term of the 2014 Equity Incentive Plan. A summary of stock-based compensation costs related to the 2014 Equity Incentive Plan and expired plans follows (in millions): Successor Predecessor Year Ended December 31, 2015 Three Months Ended December 31, 2014 Nine Months Ended September 30, 2014 Total stock-based compensation costs: Restricted stock and restricted stock units $ 0.2 $ 0.1 $ 0.6 Stock options, performance awards and other 0.2 0.1 — Expense included primarily in selling, general and administrative expense $ 0.4 $ 0.2 $ 0.6 Total recognized tax benefit $ — $ — $ — The total recognized tax benefit is reported at the federal statutory rate net of the tax valuation allowance. As of December 31, 2015, there was $0.9 million of unrecognized compensation cost, adjusted for estimated forfeitures, related to non-vested stock-based payments granted, of which $0.1 million relates to restricted stock units and $0.8 million relates to stock options. That cost is expected to be recognized over a weighted-average period of 2.7 years. Of the 1.0 million shares of common stock authorized for issuance under the 2014 equity incentive plan, there were approximately 462,000 shares available for future awards under the plans at December 31, 2015 (excluding outstanding awards which terminate or are cancelled without being exercised), all of which are available for grants of stock options, restricted stock or restricted stock units, performance awards and other stock-based awards if authorized by the Compensation, Nominating and Governance Committee of the Board of Directors. Stock-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized over the requisite service period, on a straight-line basis the over the vesting period. Restricted Stock Units and Restricted Stock The fair value of restricted stock and restricted stock units is determined based on the closing price of Centrus’ Class A Common Stock on the grant date. Compensation cost for restricted stock and restricted stock units is amortized to expense on a straight-line basis over the vesting period. There were no restricted stock issuances in the 2015, three-month ended December 31, 2014 and nine-month ended September 30, 2014. Sale of shares of restricted stock is restricted prior to the date of vesting. Unvested shares of restricted stock outstanding immediately prior to the Effective Date were cancelled pursuant to the Plan of Reorganization. Non-employee, independent directors are granted restricted stock units as part of their compensation for serving on the Board of Directors which may only be settled in Centrus Class A Common Stock. The restricted stock units vest over one year, however, vesting is accelerated upon (1) the director attaining eligibility for retirement, (2) termination of the director’s service by reason of death or disability, or (3) a change in control. Settlement of restricted stock units granted to non-employee, independent directors is made in shares of Centrus Class A Common Stock only upon the director’s retirement or other end of service. There were 40,000 shares of restricted stock units issued on May 7, 2015, which will vest in one year. All restricted stock units settleable for common stock of the Predecessor Company were either surrendered or cancelled prior to or on the Effective Date of the Plan of Reorganization. Stock Options The intrinsic value of an option, if any, represents the excess of the fair value of the common stock over the exercise price. The fair value of stock option awards is estimated using the Black-Scholes option pricing model, which includes a number of assumptions including Centrus’ estimates of stock price volatility, employee stock option exercise behaviors, future dividend payments, and risk-free interest rates. The expected term of options granted is the estimated period of time from the beginning of the vesting period to the date of expected exercise or other settlement, based on historical exercises and post-vesting terminations. Centrus has estimated the expected term using the simplified method described in SEC Staff Accounting Bulletin No. 107/110, Share-Based Payment , due to the lack of historical exercise and post-vesting termination information available for the Successor Company. Future stock price volatility is estimated based on historical volatility for the recent period equal to the expected term of the options. Centrus has estimated volatility based on the Predecessor’s Company’s highest reported historical volatility. The risk-free interest rate for the expected option term is based on the U.S. Treasury yield curve in effect at the time of grant. No cash dividends are expected in the foreseeable future and, therefore, an expected dividend yield of zero is used in the option valuation model. Historical data are used to estimate pre-vesting option forfeitures at the time of grant. Estimates for option forfeitures are revised in subsequent periods if actual forfeitures differ from those estimates. Compensation expense is recognized for stock option awards that are expected to vest. Assumptions used in the Black-Scholes option pricing model to value option grants in 2015 and the three months ended December 31, 2014 follow: Successor Year Ended December 31, 2015 Three Months Ended December 31, 2014 Risk-free interest rate 1.91% 1.89% Expected volatility 75% 75% Expected option life (years) 6 6 Weighted-average grant date fair value $2.62 $3.72 Options granted (in thousands) 437 92 Stock options vest and become exercisable in equal annual installments over a three or four year period and expire ten years from the date of grant. A summary of stock option activity follows: Stock Options (thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Life in Years Aggregate Intrinsic Value (millions) Outstanding at December 31, 2014 93 $5.62 Granted 437 $3.96 Exercised — — Forfeited (55) $5.62 Outstanding at December 31, 2015 475 $4.09 9.3 — Exercisable at December 31, 2015 12 $5.62 8.9 — Stock options outstanding and options exercisable at December 31, 2015, follow: Stock Exercise Price Options Outstanding (thousands) Weighted Average Remaining Contractual Life in Years Options Exercisable (thousands) $5.62 37.5 8.9 12.0 $4.37 300.0 9.2 - $3.90 22.5 9.6 - $3.93 15.0 9.6 - $2.71 50.0 9.8 - $2.75 50.0 9.8 - |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Provision (Benefit) The provision (benefit) for income taxes from continuing operations is as follows (in millions): Successor Predecessor Year Ended December 31, 2015 Three Months Ended December 31, 2014 Nine Months Ended September 30, 2014 Current: Federal $ — $ — $ — State and local (0.3 ) — (1.0 ) Foreign — — — (0.3 ) — (1.0 ) Deferred: Federal — (2.4 ) — State and local — — — Foreign — — — — (2.4 ) — $ (0.3 ) $ (2.4 ) $ (1.0 ) Deferred Taxes Future tax consequences of temporary differences between the carrying amounts for financial reporting purposes and the Company’s estimate of the tax bases of its assets and liabilities result in deferred tax assets and liabilities, as follows (in millions): December 31, 2015 2014 Deferred tax assets: Plant lease turnover and other exit costs $ 3.1 $ 0.9 Employee benefits costs 137.7 148.5 Inventory 3.1 6.6 Property, plant and equipment 437.1 450.2 Waste disposition 0.3 1.3 Net operating loss and credit carryforwards 114.3 76.7 Accrued expenses 8.8 5.4 Other 11.9 14.6 $ 716.3 $ 704.2 Valuation allowance (676.4 ) (659.6 ) Deferred tax assets, net of valuation allowance $ 39.9 $ 44.6 Deferred tax liabilities: Intangible assets 37.3 42.0 Prepaid expenses 2.6 2.6 Deferred tax liabilities $ 39.9 $ 44.6 $ — $ — The valuation allowance reduces the net deferred tax assets to their net realizable value. There is a full valuation allowance against net deferred taxes due to annual losses since 2011 and substantial uncertainty to generate future taxable income that would lead to realization of the net deferred tax assets. The ultimate realization of the net deferred tax assets is dependent upon generating sufficient taxable income in future years when deferred tax assets are recoverable or are expected to reverse. In November 2015, the FASB issued Accounting Standards Update 2015-17, Balance Sheet Classification of Deferred Taxes. The Company has elected early application of the accounting pronouncement as permitted. The new guidance has been applied to all periods presented in the current Annual Report. To simplify presentation, the new guidance requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. As a result, each jurisdiction has only one net noncurrent deferred tax asset or liability. This eliminates the need for an entity to analyze whether deferred tax items are related to specific assets or liabilities for financial reporting and determine the corresponding classification of those specific assets or liabilities. The new guidance also eliminates the need to estimate the timing of reversal of temporary differences for classification in situations in which a deferred tax liability or asset is not related to an asset or liability for financial reporting. The impact of applying the new guidance retrospectively is the elimination of $26.0 million noncurrent deferred tax assets and $26.0 million current deferred tax liabilities resulting in net noncurrent deferred taxes on the balance sheet of $0 at December 31, 2014. Centrus has federal net operating losses of $324.7 million that currently expire through 2035. The federal net operating losses as well as other tax attributes consisting primarily of tax basis in property of approximately $15.3 million have been reduced as a result of Centrus’ cancellation of debt income of approximately $340 million as prescribed by Internal Revenue Code Section 108. Centrus also has state net operating losses of $15.4 million that currently expire in 2035. The deferred tax assets for state net operating losses and state unrealized built-in loss deductions have been reduced as a result of Centrus’ ownership change and cancellation of debt income. Centrus experienced an ownership change as defined under Internal Revenue Code Section 382 (i.e., a more than 50% change in stock ownership change on the Effective Date of September 30, 2014). Because the ownership change occurred on the Effective Date, Centrus is subject to the rules either under Internal Revenue Code Section 382(l)(5) or 382(l)(6) as explained below. Under Internal Revenue Code Section 382(l)(6), the use of any federal and state net operating loss carryforwards and tax credits generated prior to the ownership change (that are not reduced by attribute reduction as mentioned above) are subject to an annual limitation of approximately $2.9 million for federal purposes and a pre-apportioned $2.9 million for state purposes. Centrus has an unrealized built-in loss as of the Effective Date that limits certain depreciation and loss deductions recognized during the five-year period following the Effective Date that would also be subject to the annual limitation. Internal Revenue Code Section 382(l)(5) provides that no annual limitation would apply for certain corporations that emerge from bankruptcy that qualify under this section as of the emergence Effective Date and do not experience a second ownership change during the two-year period immediately following the Effective Date. Centrus believes the requirements under Internal Revenue Code Section 382(l)(5) have been met and has prepared its financial statements and federal and state income tax returns assuming there will be no annual limitation. If another ownership change occurs during the two-year period immediately following the Effective Date, the annual limitation will be zero starting as of the date of the second ownership change. Therefore, a second ownership change would result in the loss of the federal and state net operating loss carryforwards. Furthermore, no built-in loss deductions would be recognized during the five-year period following the ownership change. Centrus continues to monitor its ownership shifts on a quarterly basis. Effective Tax Rate A reconciliation of income taxes calculated based on the federal statutory income tax rate of 35% and the effective tax rate follows: Successor Predecessor Year Ended December 31, 2015 Three Months Ended December 31, 2014 Nine Months Ended September 30, 2014 Federal statutory tax rate 35 % 35 % 35 % State income taxes, net of federal — 1 — Basis allocated to exempt income — 17 — Excess reorganization value (26 ) — (14 ) Other nondeductible expenses (1 ) (4 ) — Valuation allowance against deferred tax assets (9 ) (39 ) (23 ) Restructuring costs — — 2 State rate changes and tax attributes 1 (5 ) — — % 5 % — % The effective tax rate for the year ended December 31, 2015 includes an adjustment to the excess reorganization value of $137.2 million or 26%, and an adjustment to the valuation allowance against net deferred tax assets of $16.8 million , or 9%. The effective tax rate for the three months ended December 31, 2014 includes an adjustment to the valuation allowance against net deferred tax assets of $17.3 million or 39%. The effective tax rate for the nine months ended September 30, 2014 includes an adjustment to the valuation allowance of $77.4 million , or 23%. The three months ended December 31, 2014 also includes an increase of 17% to the effective tax rate for additional tax basis of $22.2 million written off related to retirements at the Paducah plant for depreciation previously allocated to exempt income under the extraterritorial income exclusion. Intraperiod Tax Allocation Intraperiod tax allocation rules require that all items, including other comprehensive income and discontinued operations, be considered for purposes of determining the amount of tax benefit that results from a loss in continuing operations. As a result, an income tax benefit of $2.4 million was recorded in continuing operations for the three months ended December 31, 2014, with an offsetting income tax expense of $2.4 million recorded in other comprehensive income. Uncertain Tax Positions Accounting standards require that a tax position meet a minimum recognition threshold in order for the related tax benefit to be recognized in the financial statements. The liability for unrecognized tax benefits, included in other long-term liabilities, was $1.0 million as of December 31, 2015 and $1.3 million as of December 31, 2014. If recognized, these tax benefits would impact the effective tax rate. As a result of changes to unrecognized tax benefits, the tax provision (state tax, net of federal benefit) decreased $0.2 million during the twelve months ended December 31, 2015 and $0.7 million during the nine months ended September 30, 2014. The liability for unrecognized tax benefits in the table below relates to state tax unrecognized tax benefits. Centrus believes that the liability for unrecognized tax benefits will be reduced by $0.6 million in the next 12 months. A reconciliation of the beginning and ending amount of unrecognized tax benefits follows (in millions): Successor Predecessor Year Ended December 31, 2015 Three Months Ended December 31, 2014 Nine Months Ended September 30, 2014 Balance at beginning of the period $ 1.3 $ 1.3 $ 2.3 Additions to tax positions of current period — — — Reductions to tax positions of prior years (0.3 ) — (1.0 ) Balance at end of the period $ 1.0 $ 1.3 $ 1.3 Centrus and its subsidiaries file income tax returns with the U.S. government and various states and foreign jurisdictions. The IRS started an examination of Centrus’ 2008 through 2011 federal income tax returns during 2012 that was completed in the second quarter of 2014 with no adjustment to the reported tax. As of December 31, 2015, the federal statute of limitations is closed with respect to all tax years through 2011. As of December 31, 2015, the Kentucky statute of limitations for calendar tax years 2011 forward had not yet expired. Centrus recognizes accrued interest related to uncertain tax positions as a component of interest expense. Reversals of previously accrued income tax related interest is typically offset to interest expense, but if the amount is significant, it is reclassified to interest income in the consolidated statement of operations. Centrus recognizes the increase or decrease of accrued penalties for income taxes as a component of selling, general and administrative expense in the consolidated statement of operations. The impact of accrued interest and penalties in the consolidated statement of operations was a reduction to expenses of $0.1 million for the twelve months ended December 31, 2015, an increase to expenses of less than $0.1 million for the three months ended December 31, 2014, and a reduction to expenses of $0.3 million for the nine months ended September 30, 2014. Accrued interest and penalties, included as a component of accounts payable and accrued liabilities, totaled $0.2 million as of December 31, 2015 and $0.3 million as of December 31, 2014. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | NET INCOME (LOSS) PER SHARE Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period, excluding any unvested restricted stock. In calculating diluted net income per share, the numerator is increased by interest and dividends on potentially dilutive securities, net of tax, and the denominator is increased by the weighted average number of shares resulting from potentially dilutive securities, assuming full conversion. No dilutive effect is recognized in a period in which a net loss has occurred. Net income (loss) per share information reported for 2015 and the three months ended December 31, 2014 is not comparative to share information reported for the nine months ended September 30, 2014 as a result of the emergence from Chapter 11 bankruptcy and the application of fresh start accounting. On the Effective Date, all debt and stock of the Predecessor Company were cancelled and new debt and stock for the Successor Company were issued. Successor Predecessor (in millions, except per share amounts) Year Ended December 31, 2015 Three Months Ended December 31, 2014 Nine Months Ended September 30, 2014 Numerators: Net income (loss) - basic $ (187.4 ) $ (42.3 ) $ 340.1 Interest expense on convertible notes — — 9.0 Net income (loss), if converted - diluted $ (187.4 ) $ (42.3 ) $ 349.1 Denominator: Weighted average common shares 9.0 9.0 5.0 Less: Weighted average unvested restricted stock — — 0.1 Denominator for basic calculation 9.0 9.0 4.9 Weighted average effect of dilutive securities: Stock compensation awards (a) — — — Convertible notes — — 1.8 Convertible preferred stock: Equivalent common shares — — 27.2 Less: share issuance limitation (b) — — 26.3 Net allowable common shares — — 0.9 Subtotal — — 2.7 Less: shares excluded in a period of a net loss — — — Weighted average effect of dilutive securities — — 2.7 Denominator for diluted calculation 9.0 9.0 7.6 Net income (loss) per share - basic $ (20.82 ) $ (4.70 ) $ 69.41 Net income (loss) per share - diluted $ (20.82 ) $ (4.70 ) $ 45.93 (a) Compensation awards under the 2014 Equity Incentive Plan resulted in common stock equivalents of less than 0.1 million shares of common stock and are excluded from the diluted calculation as a result of net losses in the twelve months ended December 31, 2015 and the three months ended December 31, 2014. (b) Conversion of the convertible preferred stock of the Predecessor Company was limited based on NYSE rules requiring shareholder approval. Options and warrants to purchase shares of common stock having an exercise price greater than the average share market price are excluded from the calculation of diluted net income (loss) per share: Successor Predecessor Year Ended December 31, 2015 Three Months Ended December 31, 2014 Nine Months Ended September 30, 2014 Options excluded from diluted net income per share 375,000 — 200 Warrants excluded from diluted net income per share N/A N/A 250,000 Exercise price of excluded options $ 3.90 to $ — $ 283.25 to $ 5.62 $ 357.00 Exercise price of excluded warrants N/A N/A $ 187.50 |
Stockholders' Equity (Notes)
Stockholders' Equity (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | STOCKHOLDERS’ EQUITY On September 30, 2014 and pursuant to the Plan of Reorganization, all interests in USEC Inc.’s common stock, $0.10 par value per share (the “Old Common Stock”) or other rights and USEC Inc.’s Series B-1 12.75% convertible preferred stock, $1.00 par value per share (the “Old Preferred Stock”), and any options or other rights exercisable therefor, as applicable, were cancelled, extinguished and deemed of no further force and effect. Further, the warrants to purchase shares of Old Common Stock or Old Preferred Stock issued to Toshiba America Nuclear Energy Corporation (“Toshiba” ) and Babcock & Wilcox Investment Company (“B&W”) were cancelled. The Company provided written notice to the NYSE that, pursuant to the Plan of Reorganization, all outstanding shares of Old Common Stock were cancelled. Accordingly, the Company requested that the NYSE suspend trading of and delist the Old Common Stock. The Company’s certificate of incorporation was amended and restated to authorize 20,000,000 shares of preferred stock, par value $1.00 per share (the “New Preferred Stock”), 70,000,000 shares of Class A common stock, $0.10 par value per share (the “Class A Common Stock”) and 30,000,000 shares of Class B common stock, $0.10 par value per share (the “Class B Common Stock,” and together with the Class A Common Stock, the “Common Stock”). On September 30, 2014 and pursuant to the Plan of Reorganization, the Company issued 9,000,000 shares of Common Stock, which included the issuance of 7,563,600 shares of Class A Common Stock and 1,436,400 shares of Class B Common Stock. The issuance of the Class A Common Stock and Class B Common Stock under the Plan of Reorganization was not registered with the SEC. The Class A Common Stock and Class B Common Stock were issued in reliance on exemptions under the Securities Act provided by Section 1145 of the Bankruptcy Code. The Class B Common Stock was issued to B&W and Toshiba and has the same rights, powers, preferences and restrictions and ranks equally in all matters with the Class A Common Stock issued to former holders of the Old Notes, except voting. Holders of Class B Common Stock are entitled to elect, in the aggregate, two members of the Board of Directors of the Company, subject to certain holding requirements. Additionally, approximately 462,000 shares of Class A Common Stock are available for future awards at December 31, 2015 under a management incentive plan. Refer to Note 13, Stock-Based Compensation . The Class A Common Stock began trading on the NYSE on September 30, 2014. In March 2015, at the request of the Company, the NYSE transferred the listing of Centrus common stock that trades under the symbol “LEU” to the NYSE’s MKT trading platform. The NYSE MKT’s continued listing standards are more aligned with the Company’s new capital structure, trading volume and share price since emerging from bankruptcy. On March 16, 2015, LEU began trading on the NYSE MKT. Refer to Note 17, Commitments and Contingencies - NYSE MKT Listing Standards Notice. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Commitments under SWU Purchase Agreement The Company purchases SWU contained in LEU from Russia supplied to the Company under a 2011 agreement (the “Russian Supply Agreement”) with the Russian government entity Joint Stock Company “TENEX” (“TENEX”). The LEU that Centrus obtains from TENEX under the agreement is subject to quotas and other restrictions applicable to commercial Russian LEU. Centrus purchases the SWU component of the LEU and delivers natural uranium to TENEX for the LEU’s uranium component. In December 2015, the Company successfully negotiated an amendment to the Russian Supply Agreement to better align the Company’s purchase obligations in light of market conditions generally, the Company’s sales order book, and restrictions on the import of Russian LEU. The amendment, which is subject to approval of the Russian State Atomic Energy Corporation “Rosatom”, extends the Russian Supply Agreement beyond 2022 and gives the Company the right to reschedule quantities of SWU into the period 2023-2026, in return for the purchase of additional SWU in those years. Under the terms of the amended Russian Supply Agreement, the Company will have the option to reschedule to 2023-2026 up to approximately 7.7 million SWU of the approximately 16.6 million SWU remaining to be purchased, subject to an increase in the Company’s purchase obligation as compensation for the Company’s deferring the purchase to those years and a change in the terms for ordering enriched uranium included in the amendment. These compensatory SWU, which could increase the Company’s purchase obligation after 2022 to approximately 10 million SWU, will be calculated on a yearly basis beginning at the end of 2022. The Company will take these SWU in 2023-2026, but will have the right to move purchases in excess of 2.25 million SWU per year to the first year after 2026 in which such excess can be purchased without exceeding the 2.25 million SWU limit. The amendment also provides that the Company must pay for all SWU in its minimum purchase obligation each year, even if it fails to submit orders for such SWU. The Company would then have the right to take the unordered SWU in the following year. The recent modification did not change the pricing terms for SWU under the Russian Supply Agreement, which are based on a mix of market-related price points and other factors. NYSE MKT Listing Standards Notice On November 17, 2015 Centrus Energy Corp. received notice from the NYSE MKT LLC indicating that the Company is not in compliance with Sections 1003(a)(i) and (ii) of the NYSE MKT's Company Guide since it reported a stockholders’ deficit as of September 30, 2015 and net losses in its fiscal years ended December 31, 2011, 2012 and 2013. The Company submitted a plan to regain compliance with the NYSE MKT’s continued listing standards and the NYSE MKT notified the Company in January 2016 that it has accepted the plan. With the NYSE MKT’s acceptance of the plan, the Company has until May 17, 2017, to regain compliance. If the Company is not in compliance with the continued listing standards by May 17, 2017, or if the Company does not make progress consistent with the plan, the NYSE MKT may initiate delisting procedures as appropriate. In the meantime, the Company’s common stock will continue to be traded on the NYSE MKT, subject to ongoing monitoring by the NYSE MKT and the Company’s compliance with all other applicable NYSE MKT requirements. Potential ERISA Section 4062(e) Liability The Company has been engaged in discussions with the PBGC regarding the status of the qualified pension plans, including with respect to potential liability under ERISA Section 4062(e) related to the Company ceasing enrichment operations and returning the Portsmouth and Paducah GDP facilities to DOE. In the event the PBGC were to determine there are funding obligations under section 4062(e), the Company believes that any such liability would be fully satisfied under the provisions of the Consolidated and Further Continuing Appropriations Act, 2015 (the “CFCAA”), which made major changes to ERISA section 4062(e). The CFCAA changes the criteria for triggering liability under section 4062(e); provides certain exemptions from the applicability of section 4062(e) to certain events; permits companies to satisfy the liability by making payments into the pension over seven years, but ceases once the pension reaches a 90% funding level as calculated under the method provided in the CFCAA; subject to an exception not applicable here, prohibits the PBGC from taking any enforcement, administrative or other action under section 4062(e) that is inconsistent with the amendments made by the CFCAA based on events that occurred before the date of enactment (December 16, 2014); and permits companies to elect to satisfy any liability under section 4062(e) as provided in the CFCAA for an event that had occurred prior to date of enactment as if such cessation had occurred on such date of enactment. The PBGC, however, has other authorities under ERISA that it may consider to address the Portsmouth and Paducah transitions or otherwise in connection with the Company’s qualified defined benefit pension plans. These authorities include, but are not limited to, initiating involuntary termination of underfunded plans and seeking liens or additional funding. The Company would seek to defend against the assertion by the PBGC of any such authorities based on the facts and circumstances at the time. The involuntary termination by the PBGC of any of the qualified pension plans of Centrus or Enrichment Corp. would result in the termination of the limited, conditional guaranty by Enrichment Corp. of the PIK Toggle Notes (other than with respect to the unconditional interest claim). In 2014, prior to enactment of the CFCAA, the PBGC informed the Company that the PBGC had retained an outside financial advisor to advise the PBGC on the Company’s business and the need for and advisability of any actions that may be taken by the PBGC. The Company has continued discussions with PBGC and its financial advisor and has engaged a financial advisor on this matter. The PBGC has indicated it would like to discuss the potential for the Company to make contributions to the pension in advance of statutory funding requirements as amended by the Highway and Transportation Funding Act of 2014. The Company believes it is in the best interest of all stakeholders, including the PBGC, the covered plan participants and the Company, to continue funding of the qualified pension plans in the ordinary course and expects to do so, but there is no assurance that the PBGC will agree with that approach. American Centrifuge Milestones under the 2002 DOE-USEC Agreement USEC and DOE signed an agreement dated June 17, 2002, as amended (the “2002 DOE-USEC Agreement”), pursuant to which the parties made long-term commitments directed at resolving issues related to the stability and security of the domestic uranium enrichment industry. DOE consented to the assumption by Centrus of the 2002 DOE-USEC Agreement and other agreements between the Company and DOE subject to an express reservation of all rights, remedies and defenses by DOE and Centrus under those agreements as part of Centrus' Chapter 11 bankruptcy process. The 2002 DOE-USEC Agreement requires Centrus to develop, demonstrate and deploy advanced enrichment technology in accordance with milestones and provides for remedies in the event of a failure to meet a milestone under certain circumstances. DOE has specific remedies under the 2002 DOE-USEC Agreement if Centrus fails to meet a milestone that would adversely impact its ability to begin commercial operations of the American Centrifuge Plant on schedule, and such delay was within Centrus’ control or was due to its fault or negligence or if Centrus abandons or constructively abandons the commercial deployment of an advanced enrichment technology. These remedies include terminating the 2002 DOE-USEC Agreement, revoking Centrus’ access to DOE’s centrifuge technology that is required for the success of the American Centrifuge project, requiring Centrus to transfer certain rights in the American Centrifuge technology and facilities to DOE, and requiring Centrus to reimburse DOE for certain costs associated with the American Centrifuge project. The 2002 DOE-USEC Agreement provides that if a delaying event beyond the control and without the fault or negligence of Centrus occurs that could affect Centrus’ ability to meet an American Centrifuge Plant milestone, DOE and Centrus will jointly meet to discuss in good faith possible adjustments to the milestones as appropriate to accommodate the delaying event. The Company notified DOE that it had not met the June 2014 milestone within the time period currently provided due to events beyond its control and without the fault or negligence of the Company. The assumption of the 2002 DOE-USEC Agreement provided for under the Plan of Reorganization did not impact the ability of either party to assert all rights, remedies and defenses under the agreement and all such rights, remedies and defenses are specifically preserved and all time limits tolled expressly including all rights, remedies and defenses and time limits relating to any missed milestones. DOE and Centrus have agreed that all rights, remedies and defenses of the parties with respect to any missed milestones since March 5, 2014, including the June 2014 and November 2014 milestones, and all other matters under the 2002 DOE-USEC Agreement continued to be preserved, and that the time limits for each party to respond to any missed milestones continue to be tolled. Decontamination and Decommissioning Centrus leases facilities in Piketon, Ohio from DOE for the ACP. Centrus has obligations associated with the D&D of the Piketon facility in accordance with the requirements of the NRC and DOE. At the conclusion of the lease, Centrus is obligated to return these leased facilities to DOE in a condition that meets NRC requirements and in the same condition as the facilities were in when they were leased to Centrus (other than due to normal wear and tear). Centrus must remove all Company-owned capital improvements at the ACP, unless otherwise consented to by DOE, by the conclusion of the lease term. Based on updated cost projections, the liability for D&D of the Piketon facility was $29.4 million as of December 31, 2015, and is included in current liabilities. Effective October 1, 2015, the U.S. government discontinued funding of the Piketon testing facility and D&D expenditures commenced in 2016. As of December 31, 2014, the D&D liability was $22.6 million and was included in long-term liabilities. Centrus is required to provide financial assurance to the NRC and DOE for D&D costs under a regulatory-prescribed methodology that includes potential contingent costs and reserves. As of December 31, 2015 and December 31, 2014, Centrus has provided financial assurance to the NRC and DOE in the form of surety bonds totaling $29.4 million , which are fully cash collateralized by Centrus. Centrus expects to receive cash as surety bonds are cancelled following the Company’s performance of D&D or reduced based on our satisfaction of lease conditions. If construction of the ACP is resumed, the liability for ACP D&D and financial assurance requirements will increase commensurate with facility construction and operations. Waste Disposition The Company’s prior enrichment operations generated hazardous, low-level radioactive and mixed wastes. The storage, treatment, and disposal of wastes are regulated by federal and state laws. Wastes from our prior operations at the Paducah GDP have been shipped to off-site treatment and disposal facilities. Liabilities accrued for the treatment and disposal of wastes generated by the Company’s operations at the Paducah GDP, included in accounts payable and accrued liabilities, amounted to $1.0 million at December 31, 2015 and $3.0 million at December 31, 2014. The Company ceased uranium enrichment at the Portsmouth GDP in 2001. During subsequent years, the Company maintained the Portsmouth site and performed services under contract with DOE. On September 30, 2011, the Company completed the transition of Portsmouth site facilities to DOE. As part of the transition, at the Company’s request, the NRC terminated the Company’s certificate of compliance for the Portsmouth site. In connection with the return of facilities, DOE agreed to accept ownership of all nuclear material at the site, some of which required processing for waste disposal. The Company agreed to pay DOE its cost of disposing of such wastes. The accrued disposal obligation, included in accounts payable and accrued liabilities, is $0.7 million at December 31, 2015 and $2.6 million at December 31, 2014. The USEC Privatization Act and our lease with DOE provide that DOE remains responsible for the decontamination and decommissioning of the Paducah and Portsmouth sites. Legal Matters Centrus is subject to various legal proceedings and claims, either asserted or unasserted, which arise in the ordinary course of business. While the outcome of these claims cannot be predicted with certainty, Centrus does not believe that the outcome of any of these legal matters will have a material adverse effect on its results of operations or financial condition. Lease Commitments Expenses under operating leases for office space, equipment and the Piketon, Oak Ridge and Paducah facilities amounted to $4.3 million in 2015 and $7.0 million in 2014. Payments under the operating lease for the Paducah facility ceased in 2014. Future estimated minimum lease payments and expected lease administration payments follow (in millions): 2016 $ 3.4 2017 2.4 2018 2.4 2019 1.6 2020 0.9 Thereafter 6.6 $ 17.3 Centrus has a lease with DOE for centrifuge testing facilities in Oak Ridge through December 2016. Centrus leases facilities in Piketon for the American Centrifuge Plant from DOE. The current five-year lease term is through June 2019. Centrus has the option to extend the lease term for additional five-year terms ending in 2043. Thereafter, Centrus has the right to extend the American Centrifuge Plant lease for up to an additional 20 years, through 2063, if it agrees to demolish the existing buildings leased to Centrus after the lease term expires and subject to certain other conditions. Centrus may terminate the American Centrifuge Plant lease upon three years’ notice. DOE may terminate the lease for default, including if DOE is able to exercise its remedies with respect to the ACP under the 2002 DOE-USEC Agreement. Centrus leases the office space for its corporate headquarters in Bethesda, Maryland through October 2027 with an option to extend for five years. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss) (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The sole component of accumulated other comprehensive income (loss) (“AOCI”) relates to activity in the accounting for pension and postretirement health and life benefit plans. Amortization of actuarial (gains) losses, net (for the Predecessor), and amortization of prior service costs (credits), net, are items reclassified from AOCI and included in the computation of net periodic benefit cost (credit) as detailed in Note 12, Pension and Postretirement Health and Life Benefits . |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | |
Segment Information | REVENUE BY GEOGRAPHIC AREA, MAJOR CUSTOMERS AND SEGMENT INFORMATION Revenue attributed to domestic and foreign customers, including customers in a foreign country representing 10% or more of total revenue, follows (in millions): Successor Predecessor Year Ended Dec. 31, 2015 Three Mos. Ended Dec. 31, 2014 Nine Mos. Ended Sep. 30, 2014 2014 Combined United States $ 272.8 $ 109.1 $ 280.3 $ 389.4 Foreign: Japan 77.8 14.4 74.8 89.2 Belgium 55.5 — 35.1 35.1 Other 12.1 0.1 0.3 0.4 145.4 14.5 110.2 124.7 Total revenue $ 418.2 $ 123.6 $ 390.5 $ 514.1 In 2015, our 10 largest customers represented 97% of total revenue and our three largest customers represented 53% of total revenue. Revenue from Exelon Corporation, the U.S. government, Synatom S.A. and Kansai Electric Power Co., Inc. represented approximately 25% , 15% , 13% and 10% , respectively, of total revenue in 2015. Revenue from the Tennessee Valley Authority, Entergy Corporation and the U.S. government represented approximately 31% , 18% and 13% , respectively, of total revenue in 2014. No other customer represented more than 10% of total revenue in 2015 or 2014. Centrus has two reportable segments: the LEU segment with two components, SWU and uranium, and the contract services segment. The LEU segment includes sales of the SWU component of LEU, sales of both the SWU and uranium components of LEU, and sales of uranium. The contract services segment includes revenue and cost of sales for work that Centrus performs as a contractor to UT-Battelle. The contract services segment also includes limited services provided by Centrus to DOE and its contractors at the Portsmouth site related to facilities we continue to lease for the American Centrifuge Plant and formerly at the Paducah GDP. Gross profit is Centrus’ measure for segment reporting. There were no intersegment sales in the periods presented. Successor Predecessor (in millions) Year Ended Dec. 31, 2015 Three Mos. Ended Dec. 31, 2014 Nine Mos. Ended Sep. 30, 2014 2014 Combined Revenue LEU segment: Separative work units $ 289.9 $ 101.0 $ 347.5 $ 448.5 Uranium 65.5 0.8 — 0.8 355.4 101.8 347.5 449.3 Contract services segment 62.8 21.8 43.0 64.8 Revenue $ 418.2 $ 123.6 $ 390.5 $ 514.1 Segment Gross Profit (Loss) LEU segment $ 70.1 $ (17.8 ) $ (21.9 ) $ (39.7 ) Contract services segment (1.2 ) (0.7 ) (0.9 ) (1.6 ) Gross profit (loss) $ 68.9 $ (18.5 ) $ (22.8 ) $ (41.3 ) December 31, (in millions) 2015 2014 Assets LEU segment $ 795.9 $ 1,115.2 Contract services segment 24.8 42.5 $ 820.7 $ 1,157.7 Centrus’ long-term or long-lived assets include property, plant and equipment and other assets are reported on the balance sheet at December 31, 2015, all of which were located in the United States. |
Emergence From Voluntary Reorga
Emergence From Voluntary Reorganization Under Chapter 11 Proceedings (Text Block) | 12 Months Ended |
Dec. 31, 2015 | |
Chapter 11 Filing [Abstract] | |
Reorganization under Chapter 11 of US Bankruptcy Code Disclosure | EMERGENCE FROM VOLUNTARY REORGANIZATION UNDER CHAPTER 11 PROCEEDINGS Pursuant to the Plan of Reorganization, on the Effective Date, all shares of the Old Common Stock, all shares of the Old Preferred Stock, and all of USEC Inc.’s 3% convertible senior notes due October 2014 (the “Old Notes”) that were issued and outstanding immediately prior to the Effective Date were cancelled. On the Effective Date and pursuant to the Plan of Reorganization, the Company issued 8% Paid-In-Kind (“PIK”) toggle notes due (the “PIK Toggle Notes”). The PIK Toggle Notes will mature in 2019; provided that, the maturity shall be extended to 2024 upon the occurrence of certain conditions set forth in the Indenture. The PIK Toggle Notes have an initial aggregate principal amount of $240.4 million ; provided that, the aggregate principal amount of the PIK Toggle Notes may be increased after the date of issuance as a result of any payment of interest on the PIK Toggle Notes in the form of PIK interest. The PIK Toggle Notes are guaranteed and secured on a subordinated and limited basis by Enrichment Corp. Additional details are provided in Note 13, Debt . On the Effective Date, and pursuant to the Plan of Reorganization, the Company’s Certificate of Incorporation was amended and restated to authorize 120,000,000 shares of stock in the reorganized Company, consisting of 20,000,000 shares of New Preferred Stock, 70,000,000 shares of Class A Common Stock and 30,000,000 shares of Class B Common Stock. On the Effective Date and pursuant to the Plan of Reorganization, the Company issued 9,000,000 shares of Common Stock. Additional details are provided in Note 19, Stockholders’ Equity . The issuance of the Class A Common Stock and Class B Common Stock under the Plan of Reorganization was not registered with the SEC. The Class A Common Stock and Class B Common Stock were issued in reliance on exemptions under the Securities Act of 1933, as amended (the “Securities Act”) provided by Section 1145 of the Bankruptcy Code. No cash was raised from the issuance of the PIK Toggle Notes or Common Stock. The material terms of the Plan of Reorganization included, among other things, that upon the Effective Date: • The holders of the Old Notes received, on a pro rata basis, in exchange for claims on account of their $530 million in outstanding principal amount of the Old Notes: ◦ 79.04% of the Common Stock, subject to dilution on account of a new management incentive plan; ◦ cash for interest payable on the Old Notes accrued from October 1, 2013, the date of the last semi-annual interest payment, to the Effective Date, totaling $15.9 million ; and ◦ $200 million in principal amount of PIK Toggle Notes. • B&W and Toshiba each received, in exchange and on account of their shares of Old Preferred Stock (as of December 31, 2013, there were 85,903 shares of Old Preferred Stock outstanding with an aggregate liquidation preference of $113.9 million including accrued paid-in-kind dividends) and warrants dated September 2, 2010 to purchase up to 250,000 shares of USEC’s Old Common Stock: ◦ 7.98% of the Common Stock ( 15.96% in the aggregate), subject to dilution on account of a new management incentive plan; and ◦ $20.19 million in principal amount of PIK Toggle Notes ($40.38 million in the aggregate). • B&W and Toshiba have agreed to enter into good faith negotiations to each invest $20.19 million (for an aggregate investment of $40.38 million ) of equity in the American Centrifuge project in the future, upon mutually agreed upon terms and conditions, but in any event contingent upon the funding for the ACP of not less than $1.5 billion of debt supported by the U.S. Department of Energy (“DOE”) loan guarantee program or other government support or funding in such amount. • The Class B Common Stock issued to B&W and Toshiba has the same rights, powers, preferences and restrictions and ranks equally in all matters with the Class A Common Stock issued to former holders of the Old Notes, except voting. Holders of the Class B Common Stock are entitled to elect, in the aggregate, two members of the Board of Directors of Centrus Energy Corp., subject to certain holding requirements and other restrictions as described in the Amended and Restated Centrus Energy Corp. Certificate of Incorporation. • The former holders of Old Common Stock received, on a pro rata basis, 5% of the Class A Common Stock, subject to dilution on account of a new management incentive plan. • All secured claims were reinstated and otherwise not impaired and all liens were continued until the claims are paid in full. • All other general unsecured claims of the Company were unimpaired and were either reinstated or paid in full in the ordinary course of business upon the later of the Effective Date or when such obligation becomes due according to its terms. • On the Effective Date, Centrus Energy Corp. entered into a new secured note (the “Centrus Intercompany Note”) with initial financing of $48.0 million to provide funds necessary to make payments of $35.3 million required under the Plan of Reorganization, as well as $12.7 million available for working capital and other general corporate purposes of the Company. Payments required under the Plan of Reorganization included the repayment of borrowings under the former debtor-in-possession credit facility from Enrichment Corp. (the “DIP Facility”) of $16.3 million , interest payments of $15.9 million to former holders of the Old Notes, as described above, and $3.1 million in professional fees and other expenses. Subsequently, but subject to future draws and repayments, the Centrus Intercompany Note was satisfied in full in the fourth quarter of 2014 as a result of the assignment of certain sales contracts from Centrus to Enrichment Corp. |
Fresh Start Accounting (Notes)
Fresh Start Accounting (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Fresh Start Accounting [Abstract] | |
Fresh Start Accounting [Text Block] | FRESH START ACCOUNTING Upon the Company’s emergence from Chapter 11 bankruptcy, Centrus applied the provisions of fresh start accounting to its financial statements as (i) the holders of existing voting shares of the Predecessor Company received less than 50% of the voting shares of the emerging entity and (ii) the reorganization value of Centrus’ assets immediately prior to confirmation was less than the post-petition liabilities and allowed claims. Centrus applied fresh start accounting as of September 30, 2014, with results of operations and cash flows in the period ending September 30, 2014 attributed to the Predecessor Company. Upon the application of fresh start accounting, Centrus allocated the reorganization value to its individual assets based on their estimated fair values. Reorganization value represents the fair value of the Successor Company’s assets before considering liabilities, and the excess of reorganization value over the fair value of identified tangible and intangible assets is reported separately on the consolidated balance sheet. Centrus, with the assistance of external valuation specialists, estimated the enterprise value of the Company upon emergence from Chapter 11 bankruptcy to be in a range of $294 million to $306 million. Based on the estimates and assumptions used in determining the enterprise value, as further discussed below, Centrus estimated the enterprise value to be $299.7 million as of September 30, 2014. Enterprise value is defined as the total invested capital which includes cash and cash equivalents. The estimate is based on a calculation of the present value of the future cash flows of the Company based on its projections from October 1, 2014 through the year ending December 31, 2022, including a projected December 31, 2022 net asset value. The Company’s future cash flow projections included a variety of estimates and assumptions that had a significant effect on the determination of the Company’s enterprise value. While the Company considered such estimates and assumptions reasonable, they are inherently subject to significant business, economic and competitive uncertainties, many of which are beyond the Company’s control and, therefore, may not be realized. The assumptions used in the calculations for the discounted cash flow analysis included the following: forecasted revenue, costs and free cash flows through 2022, and a discount rate of 9.0% that considered various factors, including bonds yields, risk premiums and tax rates to determine a weighted-average cost of capital. For purposes of the enterprise valuation, no terminal value was used. Rather, the present value of the net asset value at December 31, 2022 was determined using the discount rate of 10.0%. The four-column condensed consolidated balance sheet provided below applies the effects of the Plan of Reorganization and fresh start accounting to the carrying values and classifications of assets or liabilities as of September 30, 2014. Upon adoption of fresh start accounting, the recorded amounts of assets and liabilities were adjusted to reflect their estimated fair values. Accordingly, the reported historical financial statements of the Predecessor Company prior to the adoption of fresh start accounting for periods ended on or prior to September 30, 2014 are not comparable to those of the Successor Company. In applying fresh start accounting, the Company followed these principles: • The reorganization value, which represents the enterprise value and non-interest bearing liabilities, was allocated to the Successor Company’s assets based on their estimated fair values. The reorganization value exceeded the sum of the fair value assigned to assets. This excess reorganization value was recorded as part of the Successor Company assets at September 30, 2014. • Each liability existing as of the fresh start accounting date, other than deferred taxes and pension and other postretirement benefit obligations, has been stated at the fair value, and determined at appropriate risk adjusted interest rates. • Deferred taxes were reported in conformity with applicable income tax accounting standards. Deferred tax assets and liabilities have been recognized for differences between the assigned values and the tax basis of the recognized assets and liabilities. • The actuarial value of pension and other postretirement benefit obligations were determined based on applicable retirement benefits standards. The following table reconciles the enterprise value to the estimated fair value of Successor Company’s Common Stock as of the Effective Date (in millions, except per share data): Enterprise value $ 299.7 Less: Fair value of debt 240.4 Fair value of Successor common stock $ 59.3 Shares outstanding at September 30, 2014 9.0 Per share value $ 6.59 The following table reconciles the enterprise value to the estimated reorganization value as of the Effective Date (in millions): Enterprise value $ 299.7 Plus non-debt liabilities 763.9 Reorganization value of Successor assets $ 1,063.6 The fair value of non-debt liabilities represents the total assumed liabilities of the Successor Company on the Effective Date less the fair value of the debt. Upon the adoption of fresh start accounting, the Successor Company adopted the significant accounting policies of the Predecessor Company, with the exception of its accounting policy for pension and postretirement benefit plans. Assets and obligations related to the retirement benefit plans are remeasured each year as of the balance sheet date resulting in differences between actual and projected results for the year. Historically, the Company recognized these actuarial gains and losses as a component of stockholders’ equity and generally amortized them into operating results over the average future service period of the active employees of these plans or the average future lifetime of plan participants for inactive plans. Upon the adoption of fresh start accounting and as a result of ceasing enrichment activities and the various plan changes, the Successor Company adopted an accounting policy to immediately recognize actuarial gains and losses in the statement of operations beginning in the fourth quarter of 2014. The immediate recognition in the statement of operations is intended to increase transparency into how movements in plan assets and benefit obligations impact financial results. The adjustments set forth in the following condensed consolidated balance sheet at September 30, 2014 reflect the effect of the consummation of the transactions contemplated by the Plan of Reorganization (reflected in the column “Reorganization Adjustments”) as well as fair value adjustments as a result of the adoption of fresh start accounting (reflected in the column “Fresh Start Adjustments”). (in millions) Predecessor Company, September 30, 2014 Reorganization Adjustments Fresh Start Adjustments Successor Company, September 30, 2014 ASSETS Current Assets Cash and cash equivalents $ 124.4 $ (19.0 ) (a) $ — $ 105.4 Accounts receivable 90.0 — — 90.0 Inventories 464.0 — 35.4 (k) 499.4 Deferred costs associated with deferred revenue 73.9 — (73.9 ) (l) — Other current assets 21.5 0.1 (b) — 21.6 Total current assets 773.8 (18.9 ) (38.5 ) 716.4 Property, plant and equipment 3.7 — — 3.7 Deposits for surety bonds 35.9 — — 35.9 Intangible assets — — 123.5 (m) 123.5 Excess reorganization value — — 137.2 (n) 137.2 Other long-term assets 19.8 0.7 (c) — 20.5 Total Assets $ 833.2 $ (18.2 ) $ 222.2 $ 1,037.2 LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) Current Liabilities Accounts payable and accrued liabilities $ 67.3 $ 4.9 (d) $ 7.3 (o) $ 79.5 Payables under SWU purchase agreements 47.3 — — 47.3 Inventories owed to customers and suppliers 173.1 — — 173.1 Deferred revenue 94.7 — (94.0 ) (l) 0.7 Total current liabilities 382.4 4.9 (86.7 ) 300.6 Long-term debt — 240.4 (e) — 240.4 Postretirement health and life benefit obligations 202.4 — 9.2 (o) 211.6 Pension benefit liabilities 95.9 — 78.2 (o) 174.1 Other long-term liabilities 51.2 — — 51.2 Total liabilities not subject to compromise 731.9 245.3 0.7 977.9 Liabilities subject to compromise Convertible senior notes and accrued interest 547.4 (547.4 ) (f) — — Convertible preferred stock and PIK dividends payable 113.9 (113.9 ) (f) — — Accounts payable 1.6 (1.6 ) (f) — — Total liabilities subject to compromise 662.9 (662.9 ) — — Total liabilities 1,394.8 (417.6 ) 0.7 977.9 Stockholders’ Equity (Deficit) Common stock (Predecessor) 0.5 — (0.5 ) (p) — Excess of capital over par value (Predecessor) 1,221.5 0.4 (g) (1,221.9 ) (p) — Treasury stock (Predecessor) (38.8 ) — 38.8 (p) — Accumulated other comprehensive loss, net of tax (Predecessor) (119.5 ) (2.2 ) (h) 121.7 (p) — Common stock (Successor) — 0.9 (i) — 0.9 Excess of capital over par value (Successor) — 58.4 (i) — 58.4 Retained earnings (deficit) (1,625.3 ) 341.9 (j) 1,283.4 (p) — Total stockholders’ equity (deficit) (561.6 ) 399.4 221.5 59.3 Total Liabilities and Stockholders’ Equity (Deficit) $ 833.2 $ (18.2 ) $ 222.2 $ 1,037.2 Reorganization Adjustments (a) The cash payments recorded on the Effective Date from implementation of the Plan of Reorganization include the following (in millions): Payment of claims for interest payable on the Old Notes at the non-default rate $ 15.9 Payment of professional fees 1.5 Payment of unsecured pre-petition claims 1.6 Net decrease in cash $ 19.0 (b) Represents payment in advance of the fees and expenses for the trustee and collateral agent for the PIK Toggle Notes issued at the Effective Date. (c) Represents $0.7 million of debt issuance cost incurred on the PIK Toggle Notes. These costs will be amortized using the straight-line method, which approximates the effective interest method, over the life of the PIK Toggle Notes. (d) Primarily represents success fees accrued upon emergence from Chapter 11 bankruptcy that have been included in Reorganization Items, Net in the consolidated statements of operations. (e) Adjustment reflects the issuance of the $240.4 million in PIK Toggle Notes to holders of the Old Notes and Old Preferred Stock. (f) The adjustment to liabilities subject to compromise relates to the extinguishment of the Old Notes, the Old Preferred Stock and unsecured general claims. The holders of Old Notes received PIK Toggle Notes, cash on interest accrued at the non-default rate to the Effective Date and Common Stock. The holders of Old Preferred Stock received PIK Toggle Notes and Class B Common Stock. The holders of unsecured general claims received cash outlays on the Effective Date. (g) Represents the cancellation of the unamortized restricted stock and restricted stock units of the Predecessor Company. (h) Upon the Effective Date, the Company froze benefit accruals under the supplemental executive retirement plans (“SERP”). The $2.2 million adjustment reflects the curtailment related to the freeze of the benefits under these plans. (i) Pursuant to the Plan of Reorganization, the Company issued 9 million shares of Common Stock. This adjustment records the Successor Company’s Common Stock and additional paid in capital of $59.3 million, which represents the fair value of the Common Stock for financial statement reporting purposes. (j) As a result of the Plan of Reorganization, the adjustment to the accumulated deficit equaled the gain on extinguishment of debt, offset by the issuance of the Successor Company’s PIK Toggle Notes, Common Stock and cash payments as follows (in millions): Extinguishment of Predecessor claims pursuant to the Plan: Convertible senior notes and accrued interest $ 547.4 Convertible preferred stock and PIK dividends payable 113.9 Accounts payable 1.6 Total liabilities subject to compromise $ 662.9 Total consideration given pursuant to the Plan: PIK Toggle Notes $ (240.4 ) Issuance of 95% of Common Stock to holders of Old Notes and Old Preferred Stock (56.4 ) Cash payments for interest payable on Old Notes at the non-default rate (15.9 ) Cash payments to holders of unsecured claims (1.6 ) Total settlements on liabilities subject to compromise $ (314.3 ) Gain on extinguishment of pre-petition liabilities $ 348.6 Other adjustments to accumulated deficit: Benefit accrual freeze on SERP plans $ 2.2 Cancellation of restricted stock and restricted stock units (0.4 ) Deferred financing costs 0.7 Professional fees accrued at the emergence (6.3 ) Total other reorganization expenses $ (3.8 ) Issuance of 5% of Common Stock to holders of Old Common Stock (2.9 ) Total adjustment to retained deficit (earnings) $ 341.9 Fresh Start Adjustments (k) Inventories were mainly valued using a net realizable value method which utilizes the expected selling prices to customers as a basis for valuing finished goods. An adjustment of $35.4 million was recorded to increase the book value of SWU inventories to fair value. (l) The adjustment reflects the elimination of deferred costs associated with deferred revenue and of the deferred revenue of $73.9 million and $94.0 million , respectively, resulting in a gain of $20.1 million recorded in Reorganization Items, Net , and the establishment of the remaining performance obligation of the Successor Company. (m) The adjustment reflects the fair value of identifiable intangible assets of $123.5 million , determined as follows: Sales order book intangibles of $54.6 million were valued using the income approach, specifically the multi-period excess earnings approach based on the following significant assumptions: • Forecasted sales and profit margins associated with contracts in place for the period ranging from October 1, 2014 to December 31, 2022; and • Discount rate of 9.0%, based on the after-tax weighted-average cost of capital. Customer relationships of $68.9 million were valued using the income approach, specifically the multi-period excess earnings approach based on the following significant assumptions: • Estimate of sales from existing customers representing 65% of projected non-contractual sales over the remaining economic life of the existing customers, which was comprised of a discrete forecast from October 1, 2014 to December 31, 2022 and an expectation of sales beyond 2022, in consideration of the identifiable customer base, sales experience, and forecast market demand; • Forecasted profit margins associated with the existing customer base for the period ranging from October 1, 2014 to December 31, 2022; and • Discount rate of 10.0%, based on the after-tax weighted-average cost of capital, adjusted for perceived business risk associated with this intangible asset. (n) The adjustment records the reorganization value of assets in excess of amounts allocated to identified tangible and intangible assets as follows (in millions). Enterprise value $ 299.7 Add: Fair value of liabilities excluded from enterprise value 763.9 Less: Fair value of tangible assets (802.9 ) Less: Fair value of identified intangible assets (123.5 ) Reorganization value of Successor assets in excess of amounts allocated to identified tangible and intangible assets $ 137.2 (o) The adjustment reflects an aggregate increase of $94.7 million in pension and postretirement benefit obligations based on a remeasurement at the Effective Date. The remeasurement of plan obligations include revised mortality rate and discount rate assumptions. (p) The Predecessor Company’s accumulated deficit and accumulated other comprehensive income is eliminated in conjunction with the adoption of fresh start accounting. Also, pursuant to the Plan of Reorganization, the Old Common Stock and related additional paid in capital were eliminated to retained earnings as all of the Predecessor Company equity interests were cancelled. The Predecessor Company recognized a gain of $99.8 million related to the fresh start accounting adjustments as follows (in millions): Establishment of Successor Company’s excess reorganization value $ 137.2 Establishment of Successor Company’s other intangible assets 123.5 Inventory fair value adjustments 35.4 Deferred costs and deferred revenue fair value adjustments 20.1 Pension and postretirement remeasurement (94.7 ) Gain on revaluation of assets and liabilities $ 221.5 Cancellation of accumulated other comprehensive income (121.7 ) Total gain on fresh start accounting adjustments $ 99.8 Cancellation of Predecessor Company equity 1,183.6 Total adjustment to retained deficit (earnings) $ 1,283.4 |
Reorganization Items, Net (Note
Reorganization Items, Net (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Reorganizations Items, Net [Abstract] | |
Reorganization Items, Net [Text Block] | REORGANIZATION ITEMS, NET The following is a summary of charges (credits) related to the Company’s bankruptcy filing and reorganization (in millions). Successor Predecessor 3 Mos. Ended Dec. 31, 2014 9 Mos. Ended Sep. 30, 2014 Professional fees $ 1.5 $ 22.3 Expense of deferred financing costs on convertible senior notes — 1.2 Effects of Plan: Gain on cancellation of convertible senior notes, net — (284.7 ) Gain on cancellation of convertible preferred stock, net — (64.1 ) Expense of unamortized restricted stock — 0.4 Gain related to the freeze of SERP benefits — (2.2 ) Fresh Start Adjustments: Revaluation of deferred revenue, net of deferred costs — (20.1 ) Revaluation of inventory — (35.4 ) Valuation of intangible assets — (260.7 ) Remeasurement of pension and postretirement benefit obligations — 94.7 Elimination of Predecessor Company accumulated other comprehensive loss related to pension and postretirement benefit obligations — 121.7 Reorganization items, net $ 1.5 $ (426.9 ) Refer to Note 21, Fresh Start Accounting, for additional information regarding effects of the Plan of Reorganization and fresh start accounting adjustments. Cash payments for reorganization items totaled $8.2 million in the three months ended December 31, 2014 and $15.6 million in the nine months ended September 30, 2014. |
Quarterly Results of Operations
Quarterly Results of Operations (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Results of Operations (Unaudited) [Abstract] | |
Quarterly Financial Information [Text Block] | QUARTERLY RESULTS OF OPERATIONS (Unaudited) (in millions, except per share data) Successor 2015 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. Revenue $ 167.8 $ 63.3 $ 29.2 $ 157.9 Cost of sales 160.9 59.0 53.6 75.8 Gross profit (loss) 6.9 4.3 (24.4 ) 82.1 Advanced technology costs 1.8 4.0 1.9 25.3 Selling, general and administrative 12.3 6.3 13.5 10.5 Amortization of intangible assets 4.0 2.0 1.1 6.3 Impairment of excess reorganization value — — — 137.2 Special charges for workforce reductions 0.6 2.9 9.8 (0.1 ) Other (income) (0.8 ) (0.7 ) (0.3 ) (0.3 ) Operating (loss) (11.0 ) (10.2 ) (50.4 ) (96.8 ) Interest expense 4.9 4.9 4.8 5.0 Interest (income) (0.2 ) — (0.1 ) — Provision (benefit) for income taxes (0.3 ) — — — Net (loss) $ (15.4 ) $ (15.1 ) $ (55.1 ) $ (101.8 ) Net (loss) per share - basic $ (1.71 ) $ (1.68 ) $ (6.05 ) $ (11.19 ) Net (loss) per share - diluted $ (1.71 ) $ (1.68 ) $ (6.05 ) $ (11.19 ) Predecessor Successor 2014 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. Revenue $ 148.6 $ 121.2 $ 120.7 $ 123.6 Cost of sales 169.5 117.7 126.1 142.1 Gross profit (loss) (20.9 ) 3.5 (5.4 ) (18.5 ) Advanced technology costs 33.3 18.0 5.3 4.7 Selling, general and administrative 11.7 10.1 10.4 10.2 Amortization of intangible assets — — — 4.3 Special charges for workforce reductions and advisory costs (0.5 ) 2.5 0.1 2.1 Other (income) (26.2 ) (8.4 ) (4.8 ) (1.3 ) Operating (loss) (39.2 ) (18.7 ) (16.4 ) (38.5 ) Interest expense 4.6 4.7 4.7 4.9 Interest (income) (0.4 ) — (0.1 ) (0.2 ) Reorganization items, net (Note 22) 8.4 4.7 (440.0 ) 1.5 Provision (benefit) for income taxes (1.0 ) (0.1 ) 0.1 (2.4 ) Net income (loss) $ (50.8 ) $ (28.0 ) $ 418.9 $ (42.3 ) Net income (loss) per share - basic $ (10.37 ) $ (5.71 ) $ 85.49 $ (4.70 ) Net income (loss) per share - diluted $ (10.37 ) $ (5.71 ) $ 55.51 $ (4.70 ) The calculation of net income (loss) per share on a dilutive basis is provided in Note 15, Net Income (Loss) Per Share . No dilutive effect is recognized in periods in which a net loss has occurred or in which the assumed conversion effect of convertible securities is antidilutive. |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents Cash and cash equivalents include short-term or highly liquid assets with original maturities of three months or less. |
Inventory, Policy [Policy Text Block] | Inventories and Inventories Owed to Customers and Suppliers LEU consists of two components: separative work units (“SWU”) and uranium. SWU is a standard unit of measurement that represents the effort required to transform a given amount of natural uranium into two components: enriched uranium having a higher percentage of U 235 and depleted uranium having a lower percentage of U 235 . The SWU contained in LEU is calculated using an industry standard formula based on the physics of enrichment. The amount of enrichment deemed to be contained in LEU under this formula is commonly referred to as its SWU component and the quantity of natural uranium deemed to be used in the production of LEU under this formula is referred to as its uranium or “feed” component. SWU and uranium inventory costs are determined using the monthly moving average cost method. SWU costs for the Successor Company are based on SWU purchase costs and the inventory cost basis as of the Effective Date. SWU inventory costs were increased by $35.4 million as of the Effective Date to reflect fresh start accounting adjustments as described in Note 21, Fresh Start Accounting . Centrus acquires Russian LEU under the terms of a commercial agreement with Russia (the “Russian Supply Agreement”). Deliveries under the supply agreement are expected to continue through 2026. The cost of the SWU component of LEU acquired from Russia is recorded at the purchase cost plus related shipping costs. Inventories of SWU and uranium are valued at the lower of cost or net realizable value (“NRV”). NRV is the estimated selling price in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation. The estimated selling price for SWU and uranium is based on the pricing terms of contracts in the Company’s sales order book, and, for uranium not under contract, the estimated selling price is based primarily on published price indicators at the balance sheet date. Inventories owed to customers and suppliers, included in current liabilities, consist primarily of SWU and uranium inventories owed to fabricators. Fabricators process LEU into fuel for use in nuclear reactors. Under inventory optimization arrangements between Centrus and domestic fabricators, fabricators order quantities of LEU from Centrus based on scheduled or anticipated orders from utility customers for deliveries in future periods. As delivery obligations under actual customer orders arise, Centrus satisfies these obligations by arranging for the transfer to the customer of title to the specified quantity of LEU at the fabricator. Centrus’ balances of SWU and uranium vary over time based on the timing and size of the fabricator’s LEU orders from Centrus and the fabricator’s needs for working stock of LEU. Balances can be positive or negative at the discretion of the fabricator. Fabricators have other inventory supplies and, where a fabricator has elected to order less material from Centrus than Centrus is required to deliver to its customers at the fabricator, the fabricator will use these other inventories to satisfy Centrus’ customer order obligations on Centrus’ behalf. In such cases, the transfer of title of LEU from Centrus to the customer results in quantities of SWU and uranium owed by Centrus to the fabricator. The amounts of SWU and uranium owed to fabricators are satisfied as future deliveries of LEU to fabricators are made. |
Income Tax, Policy [Policy Text Block] | Deferred Taxes Centrus follows the asset and liability approach to account for deferred taxes. Deferred tax assets and liabilities are recognized for the anticipated future tax consequences of temporary differences between the balance sheet carrying amounts of assets and liabilities and their respective tax bases. Deferred taxes are based on income tax rates in effect for the years in which temporary differences are expected to reverse. The effect on deferred taxes of a change in income tax rates is recognized in income when the change in rates is enacted in the law. A valuation allowance is provided if it is more likely than not that some or all of the deferred tax assets may not be realized. Deferred tax assets and liabilities completely offset, resulting in a balance of $0 on the Consolidated Balance Sheets as of December 31, 2015 and December 31, 2014. Additional details are provided below under New Accounting Standards and in Note 14, Income Taxes . |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment Property, plant and equipment are recorded at acquisition cost. Leasehold improvements and machinery and equipment are depreciated on a straight line basis over the shorter of the useful life of the assets or the lease term, if applicable. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Intangible Assets Centrus has intangible assets resulting from fresh start accounting as a result of emergence from Chapter 11 bankruptcy. Centrus evaluates the carrying value of the intangible assets by performing impairment tests whenever adverse conditions or changes in circumstances indicate a possible impairment loss. The identifiable intangible assets relate to the sales order book and customer relationships. The order book intangible asset is amortized as the order book is reduced, principally as result of deliveries to customers. The customer relationships intangible asset is amortized using the straight-line method over the estimated average useful life of 15 years. Centrus evaluates the carrying value of the nonidentifiable excess reorganization value (or “goodwill”, as defined by the accounting standards) by performing an impairment test on an annual basis or whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. The excess reorganization value was tested for impairment and was determined to be fully impaired as of October 1, 2015. An impairment charge was recognized for the carrying value of the excess reorganization value. Additional details are provided in Note 8, Intangible Assets . |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Financial Instruments and Fair Value Measurement Accounting standards define fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, consideration is given to the principal or most advantageous market and assumptions that market participants would use when pricing the asset or liability. Pursuant to accounting standards, Centrus’ paid-in-kind toggle notes are recorded at face value and the fair value is disclosed. The estimated fair value of the paid-in-kind toggle notes is based on the trading price at the balance sheet date. Financing costs are deferred and amortized over the life of the instrument. The balance sheet carrying amounts for cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, and payables under SWU purchase agreements approximate fair value because of the short-term nature of the instruments. |
Revenue Recognition, Policy [Policy Text Block] | SWU and Uranium Revenue Revenue is derived from sales of the SWU component of LEU, from sales of both the SWU and uranium components of LEU, and from sales of uranium. Revenue is recognized at the time LEU or uranium is delivered under the terms of contracts with domestic and international electric utility customers. Most customers take title and delivery of LEU at fuel fabricators. Centrus ships LEU to nuclear fuel fabricators for scheduled or anticipated orders from utility customers. Based on customer orders, Centrus arranges for the transfer of title of LEU from Centrus to the customer for the specified quantity of LEU at the fuel fabricator. Revenue is recognized when delivery of LEU to the customer occurs at the fuel fabricator. In a number of sales transactions, title to uranium or LEU is transferred to the customer and Centrus receives payment under normal credit terms without physically delivering the uranium or LEU to the customer. This may occur because the terms of the agreement require Centrus to hold the uranium to which the customer has title, or because the customer encounters brief delays in taking delivery of LEU from Centrus. In such cases, recognition of revenue and related cost of sales does not occur at the time title to uranium or LEU transfers to the customer but instead are deferred until LEU to which the customer has title is physically delivered. Contract Services Revenue From May 2014 to September 2015, the contract services segment included revenue and cost of sales for American Centrifuge work Centrus performed under an agreement with UT-Battelle, LLC (“UT-Battelle”), the management and operating contractor for Oak Ridge National Laboratory (“ORNL”), for continued cascade operations and continuation of core American Centrifuge research and technology activities in Oak Ridge, Tennessee and Piketon, Ohio. Spending levels were consistent with the fixed funding levels. The contract services segment also includes limited services provided by Centrus to the U.S. Department of Energy (“DOE”) and its contractors at the Portsmouth site related to facilities we continue to lease for the American Centrifuge Plant and formerly at the Paducah Gaseous Diffusion Plant (the “Paducah GDP”). Contract services revenue includes billings for fees and reimbursements for allowable costs that are determined in accordance with the terms of the underlying contracts. Revenue is recognized as work is performed and as fees are earned. Allowable costs include direct costs as well as allocations of indirect plant and corporate overhead costs determined in accordance with government cost accounting standards. Amounts representing contract change orders or final billing rates based on incurred costs are accrued and included in revenue when they can be reliably estimated and realization is probable. Allowable costs are subject to audit by the Defense Contract Audit Agency (“DCAA”), or such other entity that DOE authorizes to conduct the audit. The final settlement of amounts submitted by Centrus for reimbursement is subject to Federal Acquisition Regulations requiring the DOE contracting officer to conduct negotiations and prepare a written indirect cost agreement. Revenue resulting from final billing rates is recognized upon completion of the government audits and notice by DOE authorizing final billing. DOE historically has not approved Centrus’ provisional billing rates and has not completed audits of Centrus’ incurred cost submissions and authorized final payments in a timely manner. Additional details are provided in Note 5, Receivables . There is the potential for additional revenue to be recognized, based on the outcome of DOE reviews and audits, as the result of the release of previously established receivable related reserves. However, since these periods have not been finalized with DOE, uncertainty exists and Centrus has not yet recognized this additional revenue. |
Advanced Technology Costs, Policy [Policy Text Block] | Advanced Technology Costs American Centrifuge costs incurred by the Company that are outside of our contract work with UT-Battelle are included in advanced technology costs, including certain demobilization and maintenance costs. Refer to Note 4, Advanced Technology Costs and Other Income, and Note 17, Commitments and Contingencies, for further details regarding the American Centrifuge project. Although the Company’s contract with UT-Battelle expired September 30, 2015, Centrus continued to perform work at the expected reduced scope as the parties worked toward a successor agreement. Costs for such work are included in advanced technology costs in the fourth quarter of 2015. We intend to enter into a new contract with UT-Battelle in 2016. |
Pension and Other Postretirement Plans, Policy [Policy Text Block] | Pension and Postretirement Health and Life Benefit Plans The Company provides retirement benefits to certain employees and retirees under defined benefit pension plans and postretirement health and life benefit plans. The valuation of benefit obligations and costs is based on provisions of the plans and actuarial assumptions that involve judgments and estimates. Plan assets and benefit obligations are remeasured each year as of the balance sheet date, or when lump-sum payments exceed certain levels, resulting in differences between actual and projected results. Upon the adoption of fresh start accounting, the Successor Company adopted an accounting policy to immediately recognize these actuarial gains and losses in the statement of operations. The immediate recognition in the statement of operations is intended to increase transparency regarding the impacts of changes in plan assets and benefit obligations. The Predecessor Company recognized these actuarial gains and losses as a component of stockholders’ equity and generally amortized them into operating results over the average future service period of the active employees of these plans or the average future lifetime of plan participants for inactive plans. |
Share-based Compensation, Policy [Policy Text Block] | Stock-Based Compensation Centrus has a stock-based compensation plan which authorizes the issuance of common stock to the Company’s employees, officers, directors and other individuals providing services to the Company or its affiliates pursuant to options, stock appreciation rights, restricted stock units, restricted stock, performance awards, dividend equivalent rights and other stock based awards. Stock-based compensation cost is measured at the grant date based on the fair value of the award. The cost is recognized over the requisite service period on a straight-line basis over the vesting period. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect reported amounts presented and disclosed in the consolidated financial statements. Significant estimates and judgments include, but are not limited to, asset valuations, American Centrifuge decontamination and decommissioning obligations, pension and postretirement health and life benefit costs and obligations, the tax bases of assets and liabilities, the future recoverability of deferred tax assets, and determination of the valuation allowance for deferred tax assets. Actual results may differ from such estimates, and estimates may change if the underlying conditions or assumptions change. |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued comprehensive new guidance for revenue recognition. The core principle of the new standard is that revenue should be recognized when an entity transfers promised goods or services to customers in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. The new standard will supersede current guidance in effect and may require the use of more judgment and estimates, including estimating the amount of variable revenue to recognize over each identified performance obligation. The new standard requires additional disclosures to describe the nature, amount and timing of revenue and cash flows arising from contracts. In August 2015, the FASB issued guidance deferring the effective date of the new revenue recognition standard by one year. The new standard will become effective for Centrus beginning with the first quarter of 2018 and can be adopted either retrospectively to each prior reporting period presented or as a cumulative effect adjustment as of the date of adoption. Early adoption is permitted as of the first quarter of 2017. Centrus is evaluating the impact of adopting this new guidance on its consolidated financial statements. In August 2014, the FASB issued guidance requiring management to assess an entity’s ability to continue as a going concern and to provide related disclosures in certain circumstances. The new standard is effective for annual and interim periods beginning after December 15, 2016. Early adoption is permitted. The implementation of the new standard is not expected to have a material impact on Centrus’ consolidated financial statements. In April 2015, the FASB issued guidance to simplify the presentation of debt issuance costs. The new guidance requires the presentation of debt issuance costs in the balance sheet as a reduction in the carrying amount of the related debt liability instead of a deferred charge asset. The new guidance requires retrospective application and is effective for Centrus beginning with the first quarter of 2016. The implementation of the new standard will not have a material impact on Centrus’ consolidated financial statements. In May 2015, the FASB issued guidance to eliminate the requirement to categorize investments in the fair value hierarchy table for which the fair value is measured at net asset value (“NAV”) per share as a practical expedient. Centrus adopted the new guidance as reflected in the fair value disclosures in Notes 11 and 12. Adoption of the new guidance did not affect the Company’s financial condition, results of operations, or cash flows. In July 2015, the FASB issued guidance that simplifies the subsequent measurement of inventories by replacing the existing valuation test (lower of cost or market) with a lower of cost or net realizable value (“NRV”) test. The new test is applicable for certain inventory costing methods including the monthly moving average cost method used by Centrus. NRV is the estimated selling price in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation. Under former guidance, NRV was one of several determinations used to assess market values. For Centrus, NRV has been the determining factor in assessing the market value for the Company’s principal inventories. Centrus adopted the new guidance in the fourth quarter of 2015 and there was no effect on the Company’s financial condition, results of operations, or cash flows. In November 2015, the FASB issued guidance to simplify the presentation of deferred tax assets and liabilities. The Company elected early application and the new guidance has been applied to all periods presented in the current Annual Report. To simplify presentation, the new guidance requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. The Company’s deferred tax assets and liabilities completely offset, resulting in a balance of $0 on the Consolidated Balance Sheets as of December 31, 2015 and December 31, 2014. Additional details are provided in Note 14, Income Taxes . In February 2016, the FASB issued guidance that requires lessees to recognize a right-of-use asset and lease liability on the balance sheet for all leases with terms longer than 12 months. The new standard is effective for annual and interim periods beginning after December 15, 2018, and requires expanded disclosures of lease arrangements. Centrus is evaluating the impact of adopting this new guidance on its consolidated financial statements. |
Special Charges Special Charges
Special Charges Special Charges (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Special Charges Summary [Table Text Block] | A summary of special charges and changes in the related balance sheet accounts follows (in millions): Predecessor Successor Liability Balance to Be Paid, Dec. 31, 2013 Nine Months Ended Sep. 30, 2014 Liability Balance to Be Paid, Sep. 30, 2014 Three Months Ended Dec. 31, 2014 Liability Balance to Be Paid, Dec. 31, 2014 Special Charges Paid Special Charges Paid Workforce reductions, primarily severance payments $ 21.2 $ 4.5 $ (13.6 ) $ 12.1 $ 3.7 $ (13.4 ) $ 2.4 Less: Amounts billed to DOE (2.4 ) (1.6 ) $ 2.1 $ 2.1 Successor Liability Balance to Be Paid, Dec. 31, 2014 2015 Liability Balance to Be Paid, Dec. 31, 2015 Special Charges Paid Workforce reductions, primarily severance payments $ 2.4 $ 13.6 $ (7.3 ) $ 8.7 Less: Amounts billed to DOE (0.4 ) $ 13.2 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounts Receivable, Net, Current [Abstract] | |
Schedule of Accounts Receivable | December 31, 2015 2014 (millions) Utility customers and other $ 24.7 $ 36.3 Contract services, primarily DOE 1.8 22.6 Accounts receivable, net $ 26.5 $ 58.9 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory, Net [Abstract] | |
Schedule of Inventories | Components of inventories follow (in millions): December 31, 2015 December 31, 2014 Current Assets Current Liabilities (a) Inventories, Net Current Assets Current Liabilities (a) Inventories, Net Separative work units $ 221.5 $ 33.1 $ 188.4 $ 330.6 $ 76.6 $ 254.0 Uranium 97.5 73.7 23.8 131.4 82.3 49.1 Materials and supplies 0.2 — 0.2 0.2 — 0.2 $ 319.2 $ 106.8 $ 212.4 $ 462.2 $ 158.9 $ 303.3 (a) Inventories owed to customers and suppliers, included in current liabilities, consist primarily of SWU and uranium inventories owed to fabricators that process LEU into fuel for use in nuclear reactors. |
Property, Plant and Equipment35
Property, Plant and Equipment Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | December 31, 2015 2014 (millions) Property, plant and equipment, gross $ 4.0 $ 3.7 Accumulated depreciation (0.5 ) (0.2 ) Property, plant and equipment, net $ 3.5 $ 3.5 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Excess Reorganization Value [Table Text Block] | Identifiable intangible assets consist of the following (in millions): December 31, 2015 December 31, 2014 Gross Carrying Amount Accumulated Amortization Net Amount Gross Carrying Amount Accumulated Amortization Net Amount Sales order book $ 54.6 $ 12.0 $ 42.6 $ 54.6 $ 3.2 $ 51.4 Customer relationships 68.9 5.7 63.2 68.9 1.1 67.8 $ 123.5 $ 17.7 $ 105.8 $ 123.5 $ 4.3 $ 119.2 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | The amount of amortization expense for intangible assets in each of the succeeding years is estimated to be as follows (in millions): 2016 $ 12.6 2017 11.0 2018 10.1 2019 8.6 2020 8.7 Thereafter 54.8 $ 105.8 |
Accounts Payable and Accrued 37
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | December 31, ($ millions) 2015 2014 Trade payables $ 5.4 $ 10.4 Compensation and benefits 19.2 22.4 Severance 8.7 2.4 Other accrued liabilities 11.5 15.3 $ 44.8 $ 50.5 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Instruments Recorded at Fair Value | Financial Instruments Recorded at Fair Value (in Millions) December 31, 2015 December 31, 2014 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 234.0 — — $ 234.0 $ 218.8 — — $ 218.8 Deferred compensation asset (a) — $ 1.5 — $ 1.5 — $ 3.2 — $ 3.2 Liabilities: Deferred compensation obligation (a) — 1.4 — 1.4 — 3.0 — 3.0 (a) The deferred compensation obligation represents the balance of deferred compensation plus net investment earnings. The deferred compensation plan is informally funded through a rabbi trust using variable universal life insurance. The cash surrender value of the life insurance policies is designed to track the deemed investments of the plan participants. Investment crediting options consist of institutional and retail investment funds. The deemed investments are classified within Level 2 of the valuation hierarchy because (i) of the indirect method of investing and (ii) unit prices of institutional funds are not quoted in active markets. |
Pension and Postretirement He39
Pension and Postretirement Health and Life Benefits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
General Discussion of Pension and Other Postretirement Benefits [Abstract] | |
Schedule of Changes in Projected Benefit Obligations [Table Text Block] | Changes in the projected benefit obligations and plan assets and the funded status of the plans follow (in millions): Defined Benefit Pension Plans Postretirement Health and Life Benefit Plans Successor Predecessor Successor Predecessor Year Ended December 31, 2015 Three Months Ended December 31, 2014 Nine Months Ended September 30, 2014 Year Ended December 31, 2015 Three Months Ended December 31, 2014 Nine Months Ended September 30, 2014 Changes in Benefit Obligations: Obligations at beginning of period $ 961.4 $ 965.1 $ 907.4 $ 237.7 $ 240.4 $ 231.9 Actuarial (gains) losses, net (55.2 ) 18.7 96.0 (30.2 ) 4.3 8.3 Service costs 5.8 2.0 1.8 0.2 0.2 1.3 Interest costs 36.9 10.2 31.7 8.8 2.3 7.5 Benefits paid (62.1 ) (15.0 ) (44.3 ) (13.1 ) (2.8 ) (8.7 ) Lump sum benefits paid (50.6 ) (17.9 ) (24.7 ) — — — Less federal subsidy on benefits paid — — — 0.1 0.1 0.1 Administrative expenses paid (3.4 ) (1.7 ) N/A — N/A N/A Plan amendments — — — — (6.8 ) — Curtailments — — (2.8 ) — — — Obligations at end of period 832.8 961.4 965.1 203.5 237.7 240.4 Changes in Plan Assets: Fair value of plan assets at beginning of period 772.4 781.5 784.0 26.3 28.7 36.9 Actual return on plan assets (8.0 ) 25.5 46.2 0.4 0.7 0.5 Company contributions 8.0 — 20.3 0.2 (0.3 ) — Benefits paid (62.1 ) (15.0 ) (44.3 ) (13.1 ) (2.8 ) (8.7 ) Lump sum benefits paid (50.6 ) (17.9 ) (24.7 ) — — — Administrative expenses paid (3.4 ) (1.7 ) N/A N/A N/A N/A Fair value of plan assets at end of period 656.3 772.4 781.5 13.8 26.3 28.7 (Unfunded) status at end of period (176.5 ) (189.0 ) (183.6 ) (189.7 ) (211.4 ) (211.7 ) Amounts recognized in assets and liabilities: Current liabilities $ (4.2 ) $ (9.7 ) $ (9.5 ) (5.4 ) — — Noncurrent liabilities (172.3 ) (179.3 ) (174.1 ) (184.3 ) (211.4 ) (211.7 ) $ (176.5 ) $ (189.0 ) $ (183.6 ) $ (189.7 ) $ (211.4 ) $ (211.7 ) Amounts recognized in accumulated other comprehensive income (loss), pre-tax: Net actuarial loss $ — $ — $ 202.4 $ — $ — $ 22.0 Prior service cost (credit) — — — (0.3 ) (6.8 ) (1.8 ) $ — $ — $ 202.4 $ (0.3 ) $ (6.8 ) $ 20.2 Assumptions used to determine benefit obligations at end of period: Discount rate 4.5% 4.1% 4.3% 4.2% 3.8% 4.0% Compensation increases n/a n/a n/a n/a 2.0% 2.0% |
Schedule of Net Benefit Costs [Table Text Block] | Components of Net Periodic Benefit Costs and Other Amounts Recognized in Other Comprehensive Income (Loss) (in millions) Defined Benefit Pension Plans Postretirement Health and Life Benefit Plans Successor Predecessor Successor Predecessor Year Ended Dec. 31, 2015 Three Months Ended Dec. 31, 2014 Nine Months Ended Sep. 30, 2014 Year Ended Dec. 31, 2015 Three Months Ended Dec. 31, 2014 Nine Months Ended Sep. 30, 2014 Net Periodic Benefit Costs Service costs $ 5.8 $ 2.0 $ 1.8 $ 0.2 $ 0.2 $ 1.3 Interest costs 36.9 10.2 31.7 8.8 2.3 7.5 Expected return on plan assets (gains) (47.4 ) (13.1 ) (38.5 ) (0.8 ) (0.4 ) (1.5 ) Amortization of prior service costs (credits), net — — — (0.3 ) — (0.3 ) Amortization of actuarial (gains) losses, net 0.2 6.4 1.0 (29.8 ) 4.0 Curtailment loss (gain) — — (2.2 ) — — — Net periodic benefit costs $ (4.5 ) $ 5.5 $ (6.2 ) $ (21.9 ) $ 6.1 $ 7.0 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) Net valuation (gain) loss $ 0.2 $ 6.4 $ 85.4 $ (29.8 ) $ 4.0 $ 9.2 Net prior service cost (credit) — — — — (6.8 ) — Amortization of actuarial gains (losses), net (0.2 ) (6.4 ) 1.5 29.8 (4.0 ) — Amortization of prior service (costs) credits — — (0.2 ) 0.3 — 0.3 Total (gain) loss recognized in other comprehensive income (loss), pre-tax $ — $ — $ 86.7 $ 0.3 $ (6.8 ) $ 9.5 Total recognized in net periodic benefit costs (income) and other comprehensive income (loss), pre-tax $ (4.5 ) $ 5.5 $ 80.5 $ (21.6 ) $ (0.7 ) $ 16.5 |
Schedule of Assumptions Used [Table Text Block] | Defined Benefit Pension Plans Postretirement Health and Life Benefit Plans Successor Predecessor Successor Predecessor Year Ended Dec. 31, 2015 Three Months Ended Dec. 31, 2014 Nine Months Ended Sep. 30, 2014 Year Ended Dec. 31, 2015 Three Months Ended Dec. 31, 2014 Nine Months Ended Sep. 30, 2014 Assumptions used to determine net periodic benefit costs: Discount rate 4.5% 4.1% 4.3% 4.2% 4.0% 4.0% Expected return on plan assets 6.8% 7.0% 6.8% 5.3% 5.8% 6.8% Compensation increases n/a n/a n/a 2.0% 2.0% 2.0% |
Schedule of Health Care Cost Trend Rates [Table Text Block] | Healthcare cost trend rates used to measure postretirement health benefit obligations follow: December 31, 2015 2014 Healthcare cost trend rate for the following year 7.5% 8% Long-term rate that the healthcare cost trend rate gradually declines to 5% 5% Year that the healthcare cost trend rate is expected to reach the long-term rate 2021 2021 |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates [Table Text Block] | A one-percentage-point change in the assumed healthcare cost trend rates would have an effect on the postretirement health benefit obligation and costs of the Successor Company, as follows (in millions): One Percentage Point Increase Decrease Postretirement health benefit obligation $ 5.2 $ (4.9 ) Net periodic benefit costs (service and interest cost components only) $ 0.3 $ (0.3 ) |
Schedule of Allocation of Plan Assets [Table Text Block] | The allocation of plan assets between equity and debt securities and the target allocation range by asset category follows: December 31, 2015 2014 2016 Target Defined Benefit Pension Plans: Equity securities 47 % 48 % 40 - 60% Debt securities 53 52 40 - 60 100 % 100 % Postretirement Health and Life Benefit Plans: Equity securities 64 % 65 % 55 - 75% Debt securities 36 35 25 - 45 100 % 100 % Plan assets are measured at fair value. Following are the plan investments as of December 31, 2015 and December 31, 2014 categorized by the fair value hierarchy levels described in Note 11, Fair Value Measurements, (in millions): Defined Benefit Pension Plans Level 1 Level 2 Level 3 Total 2015 2014 2015 2014 2015 2014 2015 2014 U.S. government securities $ — $ — $ 61.8 $ 81.5 $ — $ — $ 61.8 $ 81.5 Corporate debt — — 206.9 249.6 — — 206.9 249.6 Municipal bonds — — 6.8 8.1 — — 6.8 8.1 Fair value of investments by hierarchy level $ — $ — $ 275.5 $ 339.2 $ — $ — $ 275.5 $ 339.2 Investments measured at NAV (a) 377.2 429.1 Accrued interest receivable 3.5 4.0 Unsettled transactions 0.1 0.1 Plan assets $ 656.3 $ 772.4 Postretirement Health and Life Benefit Plans Level 1 Level 2 Level 3 Total 2015 2014 2015 2014 2015 2014 2015 2014 Money market funds $ 1.0 $ 0.8 $ — $ — $ — $ — $ 1.0 $ 0.8 Bond mutual funds 4.0 8.5 — — — — 4.0 8.5 Equity mutual funds 8.8 17.0 — — — — 8.8 17.0 Fair value of investments by hierarchy level $ 13.8 $ 26.3 $ — $ — $ — $ — $ 13.8 $ 26.3 (a) Equity, bond and money market investments held in collective trusts are valued based on the net asset value (“NAV”) provided by the administrator of the funds. The NAV for each fund is based on the underlying assets owned by the fund, less any expenses accrued against the fund, divided by the number of fund shares outstanding. While the underlying investments are traded on an exchange, the funds are not. Fair values for the collective trust investments are measured using the NAVs as a practical expedient and are not categorized in the fair value hierarchy. |
Schedule of Expected Benefit Payments [Table Text Block] | Estimated future benefit plan payments follow (in millions): Defined Benefit Pension Plans Postretirement Health and Life Benefit Plans 2016 $ 65.8 $ 19.2 2017 60.5 20.0 2018 59.8 21.0 2019 57.4 19.8 2020 57.5 18.3 2021 to 2025 266.6 70.5 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Share-based Compensation [Abstract] | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block] | A summary of stock-based compensation costs related to the 2014 Equity Incentive Plan and expired plans follows (in millions): Successor Predecessor Year Ended December 31, 2015 Three Months Ended December 31, 2014 Nine Months Ended September 30, 2014 Total stock-based compensation costs: Restricted stock and restricted stock units $ 0.2 $ 0.1 $ 0.6 Stock options, performance awards and other 0.2 0.1 — Expense included primarily in selling, general and administrative expense $ 0.4 $ 0.2 $ 0.6 Total recognized tax benefit $ — $ — $ — |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Assumptions used in the Black-Scholes option pricing model to value option grants in 2015 and the three months ended December 31, 2014 follow: Successor Year Ended December 31, 2015 Three Months Ended December 31, 2014 Risk-free interest rate 1.91% 1.89% Expected volatility 75% 75% Expected option life (years) 6 6 Weighted-average grant date fair value $2.62 $3.72 Options granted (in thousands) 437 92 |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Stock options vest and become exercisable in equal annual installments over a three or four year period and expire ten years from the date of grant. A summary of stock option activity follows: Stock Options (thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Life in Years Aggregate Intrinsic Value (millions) Outstanding at December 31, 2014 93 $5.62 Granted 437 $3.96 Exercised — — Forfeited (55) $5.62 Outstanding at December 31, 2015 475 $4.09 9.3 — Exercisable at December 31, 2015 12 $5.62 8.9 — |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | Stock options outstanding and options exercisable at December 31, 2015, follow: Stock Exercise Price Options Outstanding (thousands) Weighted Average Remaining Contractual Life in Years Options Exercisable (thousands) $5.62 37.5 8.9 12.0 $4.37 300.0 9.2 - $3.90 22.5 9.6 - $3.93 15.0 9.6 - $2.71 50.0 9.8 - $2.75 50.0 9.8 - |
Income Taxes Income Taxes (Tabl
Income Taxes Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The provision (benefit) for income taxes from continuing operations is as follows (in millions): Successor Predecessor Year Ended December 31, 2015 Three Months Ended December 31, 2014 Nine Months Ended September 30, 2014 Current: Federal $ — $ — $ — State and local (0.3 ) — (1.0 ) Foreign — — — (0.3 ) — (1.0 ) Deferred: Federal — (2.4 ) — State and local — — — Foreign — — — — (2.4 ) — $ (0.3 ) $ (2.4 ) $ (1.0 ) |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Future tax consequences of temporary differences between the carrying amounts for financial reporting purposes and the Company’s estimate of the tax bases of its assets and liabilities result in deferred tax assets and liabilities, as follows (in millions): December 31, 2015 2014 Deferred tax assets: Plant lease turnover and other exit costs $ 3.1 $ 0.9 Employee benefits costs 137.7 148.5 Inventory 3.1 6.6 Property, plant and equipment 437.1 450.2 Waste disposition 0.3 1.3 Net operating loss and credit carryforwards 114.3 76.7 Accrued expenses 8.8 5.4 Other 11.9 14.6 $ 716.3 $ 704.2 Valuation allowance (676.4 ) (659.6 ) Deferred tax assets, net of valuation allowance $ 39.9 $ 44.6 Deferred tax liabilities: Intangible assets 37.3 42.0 Prepaid expenses 2.6 2.6 Deferred tax liabilities $ 39.9 $ 44.6 $ — $ — |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | A reconciliation of income taxes calculated based on the federal statutory income tax rate of 35% and the effective tax rate follows: Successor Predecessor Year Ended December 31, 2015 Three Months Ended December 31, 2014 Nine Months Ended September 30, 2014 Federal statutory tax rate 35 % 35 % 35 % State income taxes, net of federal — 1 — Basis allocated to exempt income — 17 — Excess reorganization value (26 ) — (14 ) Other nondeductible expenses (1 ) (4 ) — Valuation allowance against deferred tax assets (9 ) (39 ) (23 ) Restructuring costs — — 2 State rate changes and tax attributes 1 (5 ) — — % 5 % — % |
Summary of Income Tax Contingencies [Table Text Block] | A reconciliation of the beginning and ending amount of unrecognized tax benefits follows (in millions): Successor Predecessor Year Ended December 31, 2015 Three Months Ended December 31, 2014 Nine Months Ended September 30, 2014 Balance at beginning of the period $ 1.3 $ 1.3 $ 2.3 Additions to tax positions of current period — — — Reductions to tax positions of prior years (0.3 ) — (1.0 ) Balance at end of the period $ 1.0 $ 1.3 $ 1.3 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Net Income Per Share | Successor Predecessor (in millions, except per share amounts) Year Ended December 31, 2015 Three Months Ended December 31, 2014 Nine Months Ended September 30, 2014 Numerators: Net income (loss) - basic $ (187.4 ) $ (42.3 ) $ 340.1 Interest expense on convertible notes — — 9.0 Net income (loss), if converted - diluted $ (187.4 ) $ (42.3 ) $ 349.1 Denominator: Weighted average common shares 9.0 9.0 5.0 Less: Weighted average unvested restricted stock — — 0.1 Denominator for basic calculation 9.0 9.0 4.9 Weighted average effect of dilutive securities: Stock compensation awards (a) — — — Convertible notes — — 1.8 Convertible preferred stock: Equivalent common shares — — 27.2 Less: share issuance limitation (b) — — 26.3 Net allowable common shares — — 0.9 Subtotal — — 2.7 Less: shares excluded in a period of a net loss — — — Weighted average effect of dilutive securities — — 2.7 Denominator for diluted calculation 9.0 9.0 7.6 Net income (loss) per share - basic $ (20.82 ) $ (4.70 ) $ 69.41 Net income (loss) per share - diluted $ (20.82 ) $ (4.70 ) $ 45.93 |
Schedule of Securities Excluded from Net Income Per Share | Successor Predecessor Year Ended December 31, 2015 Three Months Ended December 31, 2014 Nine Months Ended September 30, 2014 Options excluded from diluted net income per share 375,000 — 200 Warrants excluded from diluted net income per share N/A N/A 250,000 Exercise price of excluded options $ 3.90 to $ — $ 283.25 to $ 5.62 $ 357.00 Exercise price of excluded warrants N/A N/A $ 187.50 |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Future estimated minimum lease payments and expected lease administration payments follow (in millions): 2016 $ 3.4 2017 2.4 2018 2.4 2019 1.6 2020 0.9 Thereafter 6.6 $ 17.3 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | |
Segment Reporting Information | Successor Predecessor (in millions) Year Ended Dec. 31, 2015 Three Mos. Ended Dec. 31, 2014 Nine Mos. Ended Sep. 30, 2014 2014 Combined Revenue LEU segment: Separative work units $ 289.9 $ 101.0 $ 347.5 $ 448.5 Uranium 65.5 0.8 — 0.8 355.4 101.8 347.5 449.3 Contract services segment 62.8 21.8 43.0 64.8 Revenue $ 418.2 $ 123.6 $ 390.5 $ 514.1 Segment Gross Profit (Loss) LEU segment $ 70.1 $ (17.8 ) $ (21.9 ) $ (39.7 ) Contract services segment (1.2 ) (0.7 ) (0.9 ) (1.6 ) Gross profit (loss) $ 68.9 $ (18.5 ) $ (22.8 ) $ (41.3 ) |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | Revenue attributed to domestic and foreign customers, including customers in a foreign country representing 10% or more of total revenue, follows (in millions): Successor Predecessor Year Ended Dec. 31, 2015 Three Mos. Ended Dec. 31, 2014 Nine Mos. Ended Sep. 30, 2014 2014 Combined United States $ 272.8 $ 109.1 $ 280.3 $ 389.4 Foreign: Japan 77.8 14.4 74.8 89.2 Belgium 55.5 — 35.1 35.1 Other 12.1 0.1 0.3 0.4 145.4 14.5 110.2 124.7 Total revenue $ 418.2 $ 123.6 $ 390.5 $ 514.1 |
Fresh Start Accounting (Tables)
Fresh Start Accounting (Tables) | 9 Months Ended |
Sep. 30, 2014 | |
Fresh Start Accounting [Abstract] | |
Reconciliation Of Enterprise Value To Estimated Fair Value [Table Text Block] | The following table reconciles the enterprise value to the estimated fair value of Successor Company’s Common Stock as of the Effective Date (in millions, except per share data): Enterprise value $ 299.7 Less: Fair value of debt 240.4 Fair value of Successor common stock $ 59.3 Shares outstanding at September 30, 2014 9.0 Per share value $ 6.59 |
Reconciliation Of Enterprise Value To Estimated Reorganization Value [Table Text Block] | The following table reconciles the enterprise value to the estimated reorganization value as of the Effective Date (in millions): Enterprise value $ 299.7 Plus non-debt liabilities 763.9 Reorganization value of Successor assets $ 1,063.6 |
Schedule of Fresh-Start Adjustments [Table Text Block] | (in millions) Predecessor Company, September 30, 2014 Reorganization Adjustments Fresh Start Adjustments Successor Company, September 30, 2014 ASSETS Current Assets Cash and cash equivalents $ 124.4 $ (19.0 ) (a) $ — $ 105.4 Accounts receivable 90.0 — — 90.0 Inventories 464.0 — 35.4 (k) 499.4 Deferred costs associated with deferred revenue 73.9 — (73.9 ) (l) — Other current assets 21.5 0.1 (b) — 21.6 Total current assets 773.8 (18.9 ) (38.5 ) 716.4 Property, plant and equipment 3.7 — — 3.7 Deposits for surety bonds 35.9 — — 35.9 Intangible assets — — 123.5 (m) 123.5 Excess reorganization value — — 137.2 (n) 137.2 Other long-term assets 19.8 0.7 (c) — 20.5 Total Assets $ 833.2 $ (18.2 ) $ 222.2 $ 1,037.2 LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) Current Liabilities Accounts payable and accrued liabilities $ 67.3 $ 4.9 (d) $ 7.3 (o) $ 79.5 Payables under SWU purchase agreements 47.3 — — 47.3 Inventories owed to customers and suppliers 173.1 — — 173.1 Deferred revenue 94.7 — (94.0 ) (l) 0.7 Total current liabilities 382.4 4.9 (86.7 ) 300.6 Long-term debt — 240.4 (e) — 240.4 Postretirement health and life benefit obligations 202.4 — 9.2 (o) 211.6 Pension benefit liabilities 95.9 — 78.2 (o) 174.1 Other long-term liabilities 51.2 — — 51.2 Total liabilities not subject to compromise 731.9 245.3 0.7 977.9 Liabilities subject to compromise Convertible senior notes and accrued interest 547.4 (547.4 ) (f) — — Convertible preferred stock and PIK dividends payable 113.9 (113.9 ) (f) — — Accounts payable 1.6 (1.6 ) (f) — — Total liabilities subject to compromise 662.9 (662.9 ) — — Total liabilities 1,394.8 (417.6 ) 0.7 977.9 Stockholders’ Equity (Deficit) Common stock (Predecessor) 0.5 — (0.5 ) (p) — Excess of capital over par value (Predecessor) 1,221.5 0.4 (g) (1,221.9 ) (p) — Treasury stock (Predecessor) (38.8 ) — 38.8 (p) — Accumulated other comprehensive loss, net of tax (Predecessor) (119.5 ) (2.2 ) (h) 121.7 (p) — Common stock (Successor) — 0.9 (i) — 0.9 Excess of capital over par value (Successor) — 58.4 (i) — 58.4 Retained earnings (deficit) (1,625.3 ) 341.9 (j) 1,283.4 (p) — Total stockholders’ equity (deficit) (561.6 ) 399.4 221.5 59.3 Total Liabilities and Stockholders’ Equity (Deficit) $ 833.2 $ (18.2 ) $ 222.2 $ 1,037.2 |
Schedule Of Cash Payments For Reorganization Adjustments [Table Text Block] | The cash payments recorded on the Effective Date from implementation of the Plan of Reorganization include the following (in millions): Payment of claims for interest payable on the Old Notes at the non-default rate $ 15.9 Payment of professional fees 1.5 Payment of unsecured pre-petition claims 1.6 Net decrease in cash $ 19.0 |
Schedule Of Cumulative Impact Of Reorganization Adjustments [Table Text Block] | Extinguishment of Predecessor claims pursuant to the Plan: Convertible senior notes and accrued interest $ 547.4 Convertible preferred stock and PIK dividends payable 113.9 Accounts payable 1.6 Total liabilities subject to compromise $ 662.9 Total consideration given pursuant to the Plan: PIK Toggle Notes $ (240.4 ) Issuance of 95% of Common Stock to holders of Old Notes and Old Preferred Stock (56.4 ) Cash payments for interest payable on Old Notes at the non-default rate (15.9 ) Cash payments to holders of unsecured claims (1.6 ) Total settlements on liabilities subject to compromise $ (314.3 ) Gain on extinguishment of pre-petition liabilities $ 348.6 Other adjustments to accumulated deficit: Benefit accrual freeze on SERP plans $ 2.2 Cancellation of restricted stock and restricted stock units (0.4 ) Deferred financing costs 0.7 Professional fees accrued at the emergence (6.3 ) Total other reorganization expenses $ (3.8 ) Issuance of 5% of Common Stock to holders of Old Common Stock (2.9 ) Total adjustment to retained deficit (earnings) $ 341.9 |
Schedule Of Allocation of Reorganization Value to Assets [Table Text Block] | Enterprise value $ 299.7 Add: Fair value of liabilities excluded from enterprise value 763.9 Less: Fair value of tangible assets (802.9 ) Less: Fair value of identified intangible assets (123.5 ) Reorganization value of Successor assets in excess of amounts allocated to identified tangible and intangible assets $ 137.2 |
Schedule Of Cumulative Impact Of Fresh Start Adjustments [Table Text Block] | Establishment of Successor Company’s excess reorganization value $ 137.2 Establishment of Successor Company’s other intangible assets 123.5 Inventory fair value adjustments 35.4 Deferred costs and deferred revenue fair value adjustments 20.1 Pension and postretirement remeasurement (94.7 ) Gain on revaluation of assets and liabilities $ 221.5 Cancellation of accumulated other comprehensive income (121.7 ) Total gain on fresh start accounting adjustments $ 99.8 Cancellation of Predecessor Company equity 1,183.6 Total adjustment to retained deficit (earnings) $ 1,283.4 |
Reorganization Items, Net (Tabl
Reorganization Items, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Reorganizations Items, Net [Abstract] | |
Reorganization Items, Net [Table Text Block] | The following is a summary of charges (credits) related to the Company’s bankruptcy filing and reorganization (in millions). Successor Predecessor 3 Mos. Ended Dec. 31, 2014 9 Mos. Ended Sep. 30, 2014 Professional fees $ 1.5 $ 22.3 Expense of deferred financing costs on convertible senior notes — 1.2 Effects of Plan: Gain on cancellation of convertible senior notes, net — (284.7 ) Gain on cancellation of convertible preferred stock, net — (64.1 ) Expense of unamortized restricted stock — 0.4 Gain related to the freeze of SERP benefits — (2.2 ) Fresh Start Adjustments: Revaluation of deferred revenue, net of deferred costs — (20.1 ) Revaluation of inventory — (35.4 ) Valuation of intangible assets — (260.7 ) Remeasurement of pension and postretirement benefit obligations — 94.7 Elimination of Predecessor Company accumulated other comprehensive loss related to pension and postretirement benefit obligations — 121.7 Reorganization items, net $ 1.5 $ (426.9 ) |
Quarterly Results of Operatio47
Quarterly Results of Operations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Results of Operations (Unaudited) [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | Successor 2015 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. Revenue $ 167.8 $ 63.3 $ 29.2 $ 157.9 Cost of sales 160.9 59.0 53.6 75.8 Gross profit (loss) 6.9 4.3 (24.4 ) 82.1 Advanced technology costs 1.8 4.0 1.9 25.3 Selling, general and administrative 12.3 6.3 13.5 10.5 Amortization of intangible assets 4.0 2.0 1.1 6.3 Impairment of excess reorganization value — — — 137.2 Special charges for workforce reductions 0.6 2.9 9.8 (0.1 ) Other (income) (0.8 ) (0.7 ) (0.3 ) (0.3 ) Operating (loss) (11.0 ) (10.2 ) (50.4 ) (96.8 ) Interest expense 4.9 4.9 4.8 5.0 Interest (income) (0.2 ) — (0.1 ) — Provision (benefit) for income taxes (0.3 ) — — — Net (loss) $ (15.4 ) $ (15.1 ) $ (55.1 ) $ (101.8 ) Net (loss) per share - basic $ (1.71 ) $ (1.68 ) $ (6.05 ) $ (11.19 ) Net (loss) per share - diluted $ (1.71 ) $ (1.68 ) $ (6.05 ) $ (11.19 ) Predecessor Successor 2014 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. Revenue $ 148.6 $ 121.2 $ 120.7 $ 123.6 Cost of sales 169.5 117.7 126.1 142.1 Gross profit (loss) (20.9 ) 3.5 (5.4 ) (18.5 ) Advanced technology costs 33.3 18.0 5.3 4.7 Selling, general and administrative 11.7 10.1 10.4 10.2 Amortization of intangible assets — — — 4.3 Special charges for workforce reductions and advisory costs (0.5 ) 2.5 0.1 2.1 Other (income) (26.2 ) (8.4 ) (4.8 ) (1.3 ) Operating (loss) (39.2 ) (18.7 ) (16.4 ) (38.5 ) Interest expense 4.6 4.7 4.7 4.9 Interest (income) (0.4 ) — (0.1 ) (0.2 ) Reorganization items, net (Note 22) 8.4 4.7 (440.0 ) 1.5 Provision (benefit) for income taxes (1.0 ) (0.1 ) 0.1 (2.4 ) Net income (loss) $ (50.8 ) $ (28.0 ) $ 418.9 $ (42.3 ) Net income (loss) per share - basic $ (10.37 ) $ (5.71 ) $ 85.49 $ (4.70 ) Net income (loss) per share - diluted $ (10.37 ) $ (5.71 ) $ 55.51 $ (4.70 ) |
Basis of Presentation (Narrativ
Basis of Presentation (Narrative) (Details) | Sep. 30, 2014 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Plan of Reorganization Acceptance Rate | 99.00% |
Summary of Significant Accoun49
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Sep. 30, 2014 | |
Summary of Significant Accounting Policies [Abstract] | ||
Fresh-Start Adjustment, Increase (Decrease), Inventories | $ 35.4 | |
Finite-Lived Intangible Asset, Useful Life | 15 years |
Special Charges (Schedule of Re
Special Charges (Schedule of Restructuring and Related Costs)(Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | ||||
Restructuring liability | $ 12.1 | $ 21.2 | $ 2.4 | |
Termination benefit costs | $ 8.7 | 3.7 | 4.5 | 13.6 |
Payments for one-time termination benefits | (13.4) | (13.6) | (7.3) | |
Restructuring liability | 2.4 | 12.1 | 8.7 | |
DOE Share of Paducah Termination Benefit Costs | (1.6) | (2.4) | (0.4) | |
Special charges for workforce reductions | $ 2.1 | $ 2.1 | $ 13.2 |
Special Charges (Narrative)(Det
Special Charges (Narrative)(Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2015 | |
Actuarial (gain) loss from remeasurement, net | $ 29.6 | ||||
Termination benefit costs | $ 8.7 | $ 3.7 | $ 4.5 | 13.6 | |
DOE Share of Paducah Termination Benefit Costs | 1.6 | 2.4 | 0.4 | ||
Payments for Restructuring | (13.4) | (13.6) | (7.3) | ||
Restructuring Charges | $ 2.1 | $ 2.1 | $ 13.2 | ||
Cost of Sales [Member] | |||||
Actuarial (gain) loss from remeasurement, net | $ 48.8 |
Advanced Technology Costs and52
Advanced Technology Costs and Other Income (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2015 | |
Research and Development [Abstract] | ||||
Other advanced technology costs | $ 4.7 | $ 12.3 | $ 18.5 | |
Cost of Reimbursable Expense | $ 7.7 | |||
Increase in decontamination and decommissioning liability | $ 6.8 |
Accounts Receivable (Schedule o
Accounts Receivable (Schedule of Accounts Receivable) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts Receivable, Net, Current [Abstract] | ||
Utility Customer Receivables | $ 24.7 | $ 36.3 |
Contract Services Customer Receivables | 1.8 | 22.6 |
Accounts Receivable, Net | $ 26.5 | $ 58.9 |
Accounts Receivable (Narrative)
Accounts Receivable (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2011 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Valuation allowance and allowance for doubtful accounts | $ 0.6 | |||||
Accounts Receivable, Gross, Noncurrent | $ 38 | |||||
Other long-term liabilities | $ 31.9 | $ 31.9 | 32 | |||
Government [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts Receivable, Gross, Noncurrent | 78 | 78 | 75 | |||
Accounts Receivable, Net, Noncurrent | 23 | 23 | 19.9 | |||
Other long-term liabilities | 19.4 | 19.4 | $ 19.6 | |||
Proceeds on claims | 6.5 | |||||
Government - portion related to retiree benefits [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts Receivable, Gross, Noncurrent | 42.8 | 42.8 | ||||
Government - portion related to duplicative credit [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts Receivable, Gross, Noncurrent | $ 1.6 | |||||
Proceeds on claims | $ 1.6 | |||||
Corporation [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts Receivable, Gross, Noncurrent | 3.8 | $ 3.8 | ||||
Proceeds on claims | $ 0.4 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventories) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory, Net [Abstract] | ||
Separative work units inventory | $ 221.5 | $ 330.6 |
Uranium inventory | 97.5 | 131.4 |
Materials and supplies | 0.2 | 0.2 |
Inventories | 319.2 | 462.2 |
Separative work units owed to customers and suppliers | 33.1 | 76.6 |
Uranium owed to customers and suppliers | 73.7 | 82.3 |
Inventories owed to customers and suppliers | 106.8 | 158.9 |
Separative work units net of liability | 188.4 | 254 |
Uranium inventory net of liability | 23.8 | 49.1 |
Inventories, net | $ 212.4 | $ 303.3 |
Inventories (Narrative) (Detail
Inventories (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Inventory, Net [Abstract] | ||
Nonmonetary transaction, amount of barter transaction | $ 8.3 | |
Inventories provided by customers and suppliers | $ 400 | $ 600 |
Property, Plant and Equipment57
Property, Plant and Equipment Property, Plant and Equipment (Tables) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Abstract] | ||
Property, Plant and Equipment, Gross | $ 4 | $ 3.7 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (0.5) | (0.2) |
Property, Plant and Equipment, Net | $ 3.5 | $ 3.5 |
Intangible Assets Schedule of I
Intangible Assets Schedule of Intangible Assets and Excess Reorganization Value (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, gross | $ 123.5 | $ 123.5 | |
Accumulated intangible asset amortization | (17.7) | (4.3) | |
Amortizable intangible assets, net | 105.8 | 119.2 | |
Excess reorganization value | 0 | 137.2 | $ 137.2 |
Impairment of excess reorganization value | $ (137.2) | ||
Average useful life of finite-lived intangible assets | 15 years | ||
Contract-Based Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, gross | $ 54.6 | 54.6 | |
Accumulated intangible asset amortization | (12) | (3.2) | |
Amortizable intangible assets, net | 42.6 | 51.4 | |
Customer-Related Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, gross | 68.9 | 68.9 | |
Accumulated intangible asset amortization | (5.7) | (1.1) | |
Amortizable intangible assets, net | $ 63.2 | $ 67.8 |
Intangible Assets Finite-Lived
Intangible Assets Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity (Details) $ in Millions | Dec. 31, 2015USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 12.6 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 11 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 10.1 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 8.6 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 8.7 |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 54.8 |
Finite-Lived Intangible Assets, Net | $ 105.8 |
Accounts Payable and Accrued 60
Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 |
Trade payables | $ 5.4 | $ 10.4 | |
Compensation and benefits payable | 19.2 | 22.4 | |
Accrued severance payments | 8.7 | 2.4 | |
Other accrued liabilities | 11.5 | 15.3 | |
Accounts payable and accrued liabilities | $ 44.8 | $ 50.5 | |
Successor [Member] | |||
Accounts payable and accrued liabilities | $ 79.5 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Long-term debt | $ 240.4 | $ 247.6 | $ 240.4 | ||
Debt instrument interest rate | 8.00% | 8.00% | |||
Debt Interest Rate, PIK | 3.00% | ||||
Paid-in-Kind Interest | $ 7.2 | ||||
Interest Paid | $ 12 | $ 15.9 | |||
Deferred finance costs | $ 0.6 | $ 0.7 | |||
Interest payable | 5 | ||||
Interest payable, current | 1.6 | ||||
Interest payable, noncurrent | $ 3.4 | ||||
Scenario, Forecast [Member] | |||||
Debt Interest Rate, PIK | 5.50% | ||||
Maximum [Member] | |||||
Debt Interest Rate, PIK | 5.50% |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Instruments Recorded at Fair Value) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Cash and cash equivalents | $ 234 | $ 218.8 |
Deferred compensation asset | 1.5 | 3.2 |
Deferred compensation obligation | 1.4 | 3 |
Level 2 [Member] | ||
Deferred compensation asset | 1.5 | 3.2 |
Deferred compensation obligation | $ 1.4 | $ 3 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value Disclosures [Abstract] | ||
Long-term debt, fair value | $ 36.9 | $ 121.2 |
Pension and Postretirement He64
Pension and Postretirement Health and Life Benefits (Narrative) (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Defined Benefit Plan, Net Periodic Benefit Cost | $ 26.4 | |||||||
Actuarial (gain) loss from remeasurement, net | 29.6 | |||||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 4.50% | |||||||
Defined Contribution Plan, Cost Recognized | $ 0.9 | $ 4.1 | 3 | |||||
Scenario, Forecast [Member] | ||||||||
Expected defined benefit plan contributions for next fiscal year for non-qualified plans | $ 4.2 | |||||||
Expected defined benefit plan contributions for next fiscal year for postretirement health and life benefit plans | $ 5.4 | |||||||
Pension Plan, Defined Benefit [Member] | ||||||||
Defined Benefit Plan, Accumulated Benefit Obligation | $ 832.8 | 961.4 | 832.8 | |||||
Defined Benefit Plan, Net Periodic Benefit Cost | 5.5 | $ (6.2) | $ (4.5) | |||||
Approximate Number of Plan Participants | 5,000 | 5,000 | ||||||
Defined Benefit Plan, Contributions by Employer | 0 | 20.3 | $ 8 | |||||
Actuarial (gain) loss from remeasurement, net | $ 18.7 | $ 3.9 | $ 96 | $ (55.2) | ||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 4.50% | 4.40% | 4.10% | 4.30% | 4.30% | 4.50% | ||
Defined Benefit Plan, Expected Return on Plan Assets | $ 13.1 | $ 38.5 | $ 47.4 | |||||
Other Postretirement Benefit Plan, Defined Benefit [Member] | ||||||||
Defined Benefit Plan, Net Periodic Benefit Cost | 6.1 | 7 | $ 21.9 | |||||
Approximate Number of Plan Participants | 4,000 | 4,000 | ||||||
Defined Benefit Plan, Contributions by Employer | (0.3) | 0 | $ 0.2 | |||||
Actuarial (gain) loss from remeasurement, net | $ 4.3 | $ 8.3 | $ (30.2) | |||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 4.20% | 3.80% | 4.00% | 4.00% | 4.20% | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 2.00% | 2.00% | 2.00% | |||||
Defined Benefit Plan, Expected Return on Plan Assets | $ 0.4 | $ 1.5 | $ 0.8 | |||||
Cost of Sales [Member] | ||||||||
Defined Benefit Plan, Net Periodic Benefit Cost | 24.7 | |||||||
Actuarial (gain) loss from remeasurement, net | $ 48.8 | |||||||
Cost of Sales [Member] | Pension Plan, Defined Benefit [Member] | ||||||||
Actuarial (gain) loss from remeasurement, net | $ 21.6 | |||||||
Selling, General and Administrative Expenses [Member] | ||||||||
Defined Benefit Plan, Net Periodic Benefit Cost | $ 1.7 | |||||||
Actuarial (gain) loss from remeasurement, net | $ 1.7 | |||||||
Selling, General and Administrative Expenses [Member] | Pension Plan, Defined Benefit [Member] | ||||||||
Actuarial (gain) loss from remeasurement, net | $ 3.2 |
Pension and Postretirement He65
Pension and Postretirement Health and Life Benefits Pension and Postretirement Health and Life Benefits (Schedule of Changes in Projected Benefit Obligations) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Jun. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2013 | |
Actuarial (gain) loss from remeasurement, net | $ 29.6 | |||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 4.50% | |||||
Pension Plan, Defined Benefit [Member] | ||||||
Defined Benefit Plan, Benefit Obligation | $ 961.4 | $ 965.1 | 832.8 | $ 907.4 | ||
Actuarial (gain) loss from remeasurement, net | 18.7 | $ 3.9 | 96 | (55.2) | ||
Defined Benefit Plan, Service Cost | 2 | 1.8 | 5.8 | |||
Defined Benefit Plan, Interest Cost | 10.2 | 31.7 | 36.9 | |||
Defined Benefit Plan, Benefits Paid | (15) | (44.3) | (62.1) | |||
Defined Benefit Plan, Lump Sum Benefits Paid | (17.9) | (24.7) | (50.6) | |||
Defined Benefit Plan, Administrative Expenses Paid | (1.7) | (3.4) | ||||
Defined Benefit Plan, Curtailments | (2.8) | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 772.4 | 781.5 | 656.3 | 784 | ||
Defined Benefit Plan, Actual Return on Plan Assets | 25.5 | 46.2 | (8) | |||
Defined Benefit Plan, Contributions by Employer | 0 | 20.3 | 8 | |||
Defined Benefit Plan, Funded Status of Plan | (189) | (183.6) | (176.5) | |||
Amounts Recognized In Current Liabilities | (9.7) | (9.5) | (4.2) | |||
Amounts Recognized In Noncurrent Liabilities | (179.3) | (174.1) | (172.3) | |||
Defined Benefit Plan, Amounts Recognized in Balance Sheet | $ (189) | (183.6) | $ (176.5) | |||
Amounts Recognized In Accumulated Other Comprehensive Income Pre Tax Net Actuarial Loss | 202.4 | |||||
AmountsRecognizedInAccumulatedOtherComprehensiveIncomePreTax | $ 202.4 | |||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 4.10% | 4.30% | 4.50% | 4.40% | ||
Other Postretirement Benefit Plan, Defined Benefit [Member] | ||||||
Defined Benefit Plan, Benefit Obligation | $ 237.7 | $ 240.4 | $ 203.5 | 231.9 | ||
Actuarial (gain) loss from remeasurement, net | 4.3 | 8.3 | (30.2) | |||
Defined Benefit Plan, Service Cost | 0.2 | 1.3 | 0.2 | |||
Defined Benefit Plan, Interest Cost | 2.3 | 7.5 | 8.8 | |||
Defined Benefit Plan, Benefits Paid | (2.8) | (8.7) | (13.1) | |||
Defined Benefit Plan, Lump Sum Benefits Paid | 0 | 0 | 0 | |||
Defined Benefit Plan, Gross Prescription Drug Subsidy Receipts Received | 0.1 | 0.1 | 0.1 | |||
Defined Benefit Plan, Administrative Expenses Paid | 0 | |||||
Defined Benefit Plan, Plan Amendments | (6.8) | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 26.3 | 28.7 | 13.8 | $ 36.9 | ||
Defined Benefit Plan, Actual Return on Plan Assets | 0.7 | 0.5 | 0.4 | |||
Defined Benefit Plan, Contributions by Employer | (0.3) | 0 | 0.2 | |||
Defined Benefit Plan, Funded Status of Plan | (211.4) | (211.7) | (189.7) | |||
Amounts Recognized In Current Liabilities | (5.4) | |||||
Amounts Recognized In Noncurrent Liabilities | (211.4) | (211.7) | (184.3) | |||
Defined Benefit Plan, Amounts Recognized in Balance Sheet | (211.4) | (211.7) | (189.7) | |||
Amounts Recognized In Accumulated Other Comprehensive Income Pre Tax Net Actuarial Loss | 22 | |||||
Recognized In Accumulated Other Comprehensive Income Pre Tax Prior Service Cost Credit | (6.8) | (1.8) | (0.3) | |||
AmountsRecognizedInAccumulatedOtherComprehensiveIncomePreTax | $ (6.8) | $ 20.2 | $ (0.3) | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 3.80% | 4.00% | 4.20% | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 2.00% | 2.00% |
Pension and Postretirement He66
Pension and Postretirement Health and Life Benefits (Schedule of Net Benefit Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended |
Dec. 31, 2014 | Jun. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2015 | |
Actuarial (gain) loss from remeasurement, net | $ (29.6) | |||
Net periodic benefit cost (credit) | (26.4) | |||
Successor [Member] | ||||
Actuarial (gain) loss from remeasurement, net | $ 10.4 | (29.6) | ||
Curtailment (gain) | 0 | 0 | ||
Predecessor [Member] | ||||
Actuarial (gain) loss from remeasurement, net | $ 0 | |||
Curtailment (gain) | 2.2 | |||
Pension Plan, Defined Benefit [Member] | ||||
Service costs | 2 | 1.8 | 5.8 | |
Interest costs | 10.2 | 31.7 | 36.9 | |
Expected return on plan assets (gains) | (13.1) | (38.5) | (47.4) | |
Amortization of actuarial (gains) losses, net | 6.4 | 1 | 0.2 | |
Actuarial (gain) loss from remeasurement, net | (18.7) | $ (3.9) | (96) | 55.2 |
Curtailment (gain) | (2.2) | |||
Net periodic benefit cost (credit) | (5.5) | 6.2 | 4.5 | |
Postretirement Health and Life Benefits Plans [Member] | ||||
Service costs | 0.2 | 1.3 | 0.2 | |
Interest costs | 2.3 | 7.5 | 8.8 | |
Expected return on plan assets (gains) | (0.4) | (1.5) | (0.8) | |
Amortization of actuarial (gains) losses, net | 4 | (29.8) | ||
Actuarial (gain) loss from remeasurement, net | (4.3) | (8.3) | 30.2 | |
Amortization of prior service costs (credits), net | 0.3 | 0.3 | ||
Net periodic benefit cost (credit) | $ (6.1) | $ (7) | $ (21.9) |
Pension and Postretirement He67
Pension and Postretirement Health and Life Benefits Pension and Postretirement Health and Life Benefits (Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2015 | |
Pension Plan, Defined Benefit [Member] | |||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss), Net Actuarial Gain (Loss), before Tax | $ 6.4 | $ 85.4 | $ 0.2 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Gain (Loss), before Tax | (6.4) | 1.5 | (0.2) |
Other Comprehensive (Income) Loss, Amortization Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Prior Service Cost (Credit), before Tax | (0.2) | ||
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Tax | 86.7 | ||
Total recognized in net periodic benefit costs (income) and other comprehensive income (loss), pre-tax | 5.5 | 80.5 | (4.5) |
Other Postretirement Benefit Plan, Defined Benefit [Member] | |||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss), Net Actuarial Gain (Loss), before Tax | 4 | 9.2 | (29.8) |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss), Net Prior Service Cost (Credit), before Tax | (6.8) | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Gain (Loss), before Tax | (4) | 29.8 | |
Other Comprehensive (Income) Loss, Amortization Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Prior Service Cost (Credit), before Tax | 0.3 | 0.3 | |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Tax | (6.8) | 9.5 | 0.3 |
Total recognized in net periodic benefit costs (income) and other comprehensive income (loss), pre-tax | $ (0.7) | $ 16.5 | $ (21.6) |
Pension and Postretirement He68
Pension and Postretirement Health and Life Benefits Pension and Postretirement Health and Life Benefits (Schedule of Assumptions Used) (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2015 | |
Pension Plan, Defined Benefit [Member] | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 4.10% | 4.30% | 4.50% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets | 7.00% | 6.80% | 6.80% |
Other Postretirement Benefit Plan, Defined Benefit [Member] | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 4.00% | 4.00% | 4.20% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets | 5.80% | 6.80% | 5.30% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase | 2.00% | 2.00% | 2.00% |
Pension and Postretirement He69
Pension and Postretirement Health and Life Benefits Pension and Postretirement Health and Life Benefits (Schedule of Healthcare Cost Trend Rates) (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract] | ||
Defined Benefit Plan, Health Care Cost Trend Rate Assumed for Next Fiscal Year | 7.50% | 8.00% |
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate | 5.00% | 5.00% |
Defined Benefit Plan, Year that Rate Reaches Ultimate Trend Rate | 2,021 | 2,021 |
Pension and Postretirement He70
Pension and Postretirement Health and Life Benefits Pension and Postretirement Health and Life Benefits (Schedule of Effect of One Percentage Point Change In Assumed Health Care Cost Trend Rates) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates [Abstract] | |
Defined Benefit Plan, Effect of One Percentage Point Increase on Accumulated Postretirement Benefit Obligation | $ 5.2 |
Defined Benefit Plan, Effect of One Percentage Point Decrease on Accumulated Postretirement Benefit Obligation | (4.9) |
Defined Benefit Plan, Effect of One Percentage Point Increase on Service and Interest Cost Components | 0.3 |
Defined Benefit Plan, Effect of One Percentage Point Decrease on Service and Interest Cost Components | $ (0.3) |
Pension and Postretirement He71
Pension and Postretirement Health and Life Benefits Pension and Postretirement Health and Life Benefits (Plan Asset Allocations) (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Pension Plan, Defined Benefit [Member] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 100.00% | 100.00% |
Pension Plan, Defined Benefit [Member] | Equity Securities [Member] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 47.00% | 48.00% |
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | 40.00% | |
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 60.00% | |
Pension Plan, Defined Benefit [Member] | Debt Securities [Member] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 53.00% | 52.00% |
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | 40.00% | |
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 60.00% | |
Other Postretirement Benefit Plan, Defined Benefit [Member] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 100.00% | 100.00% |
Other Postretirement Benefit Plan, Defined Benefit [Member] | Equity Securities [Member] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 64.00% | 65.00% |
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | 55.00% | |
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 75.00% | |
Other Postretirement Benefit Plan, Defined Benefit [Member] | Debt Securities [Member] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 36.00% | 35.00% |
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | 25.00% | |
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 45.00% |
Pension and Postretirement He72
Pension and Postretirement Health and Life Benefits Pension and Postretirement Health and Life Benefits (Schedule of Fair Value of Plan Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Pension Plan, Defined Benefit [Member] | ||||
US Government Securities | $ 61.8 | $ 81.5 | ||
Corporate Debt | 206.9 | 249.6 | ||
Municipal Bonds | 6.8 | 8.1 | ||
Fair Value of Investments by Hierarchy Level | 275.5 | 339.2 | ||
Investments measured at NAV | 377.2 | 429.1 | ||
Accrued Interest Receivable | 3.5 | 4 | ||
Unsettled Transactions Receivable | 0.1 | 0.1 | ||
Defined Benefit Plan, Fair Value of Plan Assets | 656.3 | 772.4 | $ 781.5 | $ 784 |
Other Postretirement Benefit Plan, Defined Benefit [Member] | ||||
Money Market Funds | 1 | 0.8 | ||
Bond Mutual Funds | 4 | 8.5 | ||
Equity Mutual Funds | 8.8 | 17 | ||
Fair Value of Investments by Hierarchy Level | 13.8 | 26.3 | ||
Defined Benefit Plan, Fair Value of Plan Assets | 13.8 | 26.3 | $ 28.7 | $ 36.9 |
Fair Value, Inputs, Level 1 [Member] | Other Postretirement Benefit Plan, Defined Benefit [Member] | ||||
Money Market Funds | 1 | 0.8 | ||
Bond Mutual Funds | 4 | 8.5 | ||
Equity Mutual Funds | 8.8 | 17 | ||
Fair Value of Investments by Hierarchy Level | 13.8 | 26.3 | ||
Fair Value, Inputs, Level 2 [Member] | Other Postretirement Benefit Plan, Defined Benefit [Member] | ||||
US Government Securities | 61.8 | 81.5 | ||
Corporate Debt | 206.9 | 249.6 | ||
Municipal Bonds | 6.8 | 8.1 | ||
Fair Value of Investments by Hierarchy Level | $ 275.5 | $ 339.2 |
Pension and Postretirement He73
Pension and Postretirement Health and Life Benefits Pension and Postretirement Health and Life Benefits (Schedule of Estimated Future Benefit Payments) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Pension Plan, Defined Benefit [Member] | |
Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months | $ 65.8 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Two | 60.5 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Three | 59.8 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Four | 57.4 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Five | 57.5 |
Defined Benefit Plan, Expected Future Benefit Payments, Five Fiscal Years Thereafter | 266.6 |
Other Postretirement Benefit Plan, Defined Benefit [Member] | |
Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months | 19.2 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Two | 20 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Three | 21 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Four | 19.8 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Five | 18.3 |
Defined Benefit Plan, Expected Future Benefit Payments, Five Fiscal Years Thereafter | $ 70.5 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2015 | Sep. 30, 2014 | |
Common Stock, Shares Reserved for Future Issuance Under Management Incentive Plan | 462,000 | 1,000,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 0.9 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 92,000 | 437,000 | |
Employee Stock Option [Member] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 0.8 | ||
Restricted Stock Units (RSUs) [Member] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 0.1 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock-Based Compensation Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2015 | |
Share-based Compensation [Abstract] | |||
Restricted Stock or Unit Expense | $ 0.1 | $ 0.6 | $ 0.2 |
Stock or Unit Option Plan Expense | 0.1 | 0 | 0.2 |
Allocated Share-based Compensation Expense | $ 0.2 | $ 0.6 | $ 0.4 |
Stock-Based Compensation Stock-
Stock-Based Compensation Stock-Based Compensation (Assumptions Used in the Black-Scholes Option Pricing Model) (Details) - $ / shares shares in Thousands | 3 Months Ended | 12 Months Ended |
Dec. 31, 2014 | Dec. 31, 2015 | |
Share-based Compensation [Abstract] | ||
Share-based Goods and Nonemployee Services Transaction, Valuation Method, Risk Free Interest Rate | 1.89% | 1.91% |
Share-based Goods and Nonemployee Services Transaction, Valuation Method, Expected Volatility Rate | 75.00% | 75.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term, Simplified Method | P6Y | P6Y |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 3,720,000 | $ 2.62 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 92 | 437 |
Stock-Based Compensation Stoc77
Stock-Based Compensation Stock-Based Compensation (Options) (Details) - $ / shares shares in Thousands | 3 Months Ended | 12 Months Ended |
Dec. 31, 2014 | Dec. 31, 2015 | |
Share-based Compensation [Abstract] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 92 | 437 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 3.96 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Number of Shares | (55) | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | $ 5.62 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 93 | 475 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 5.62 | $ 4.09 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | 12 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price | $ 5.62 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2013 | |
Increase (decrease) in deferred tax asset valuation allowance | $ 17.3 | $ 77.4 | $ 16.8 | ||
Deferred Tax Assets, Net, Noncurrent | 26 | ||||
Deferred Tax Liabilities, Net, Current | 26 | ||||
Deferred income taxes | (2.4) | ||||
Impairment of excess reorganization value | 137.2 | ||||
Benefit for tax basis written off related to asset retirements | 22.2 | ||||
Provision (benefit) for income taxes | 2.4 | 1 | 0.3 | ||
Other Comprehensive Income (Loss), Tax | 2.4 | ||||
Liability for Uncertain Tax Positions, Noncurrent | 1.3 | 1.3 | 1 | $ 2.3 | |
Unrecognized Tax Benefits, Income Tax Penalties Expense Reduction | (0.7) | (0.2) | |||
Income Tax Examination, Penalties and Interest Expense Reduction (Increase) | 0.1 | $ 0.3 | 0.1 | ||
Income Tax Examination, Penalties and Interest Accrued | 0.3 | 0.2 | |||
Domestic Tax Authority [Member] | |||||
Operating Loss Carryforwards | 324.7 | ||||
Deferred income taxes | $ (2.4) | ||||
State and Local Jurisdiction [Member] | |||||
Operating Loss Carryforwards | 15.4 | ||||
Annual limitation of NOL carryforwards and tax credits generated prior to ownership change | $ 2.9 | ||||
Scenario, Forecast [Member] | |||||
Unrecognized Tax Benefits, Income Tax Penalties Expense Reduction | $ (0.6) |
Income Taxes Income Taxes (Taxe
Income Taxes Income Taxes (Taxes by Jurisdiction) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2015 | |
Current Income Tax Expense (Benefit) | $ (1) | $ (0.3) | |
Deferred income taxes | $ (2.4) | ||
Provision (benefit) for income taxes | (2.4) | (1) | (0.3) |
Domestic Tax Authority [Member] | |||
Deferred income taxes | $ (2.4) | ||
State and Local Jurisdiction [Member] | |||
Current Income Tax Expense (Benefit) | $ (1) | $ (0.3) |
Income Taxes Income Taxes (Defe
Income Taxes Income Taxes (Deferred Income Taxes) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Components of Deferred Tax Assets and Liabilities [Abstract] | ||
Deferred Tax Assets, Plant Lease Turnover and Other Exit Costs | $ 3.1 | $ 0.9 |
Deferred Tax Assets, Employee Benefits Costs | 137.7 | 148.5 |
Deferred Tax Assets, Inventory | 3.1 | 6.6 |
Deferred Tax Assets, Property, Plant and Equipment | 437.1 | 450.2 |
Deferred Tax Assets, Waste Disposition | 0.3 | 1.3 |
Deferred Tax Assets, Net Operating Loss and Credit Carryforwards | 114.3 | 76.7 |
Deferred Tax Assets, Accrued Expenses | 8.8 | 5.4 |
Deferred Tax Assets, Other | 11.9 | 14.6 |
Deferred Tax Assets, Gross | 716.3 | 704.2 |
Deferred Tax Assets, Valuation Allowance | (676.4) | (659.6) |
Deferred Tax Assets, Net of Valuation Allowance | 39.9 | 44.6 |
Deferred Tax Liabilities, Intangible Assets | 37.3 | 42 |
Deferred Tax Liabilities, Prepaid Expenses | 2.6 | 2.6 |
Deferred Tax Liabilities | $ 39.9 | $ 44.6 |
Income Taxes Income Taxes (Rate
Income Taxes Income Taxes (Rate Reconciliation) (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2015 | |
Effective Income Tax Rate Reconciliation, Deduction, Percent [Abstract] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 35.00% | 35.00% |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent | 1.00% | ||
Effective Income Tax Rate Reconciliation, Tax Exempt Income, Percent | 17.00% | ||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Percent | (14.00%) | (26.00%) | |
Effective Income Tax Rate Reconciliation, Deduction, Other, Percent | (4.00%) | (1.00%) | |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Percent | (39.00%) | (23.00%) | (9.00%) |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Restructuring Charges, Percent | 2.00% | ||
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent | (5.00%) | 1.00% | |
Effective Income Tax Rate Reconciliation, Percent | 5.00% |
Income Taxes Income Taxes (Unre
Income Taxes Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | ||||
Liability for Uncertain Tax Positions, Noncurrent | $ 1.3 | $ 1 | $ 1.3 | $ 2.3 |
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | $ (1) | $ (0.3) |
Net Income Per Share (Narrative
Net Income Per Share (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Dec. 31, 2015 | |
Convertible Debt [Member] | ||
Debt Instrument [Line Items] | ||
Interest expense | $ 9 | $ 0 |
Net Income Per Share (Schedule
Net Income Per Share (Schedule of Income Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Successor [Member] | |||||||||||
Income Per Share Calculation [Line Items] | |||||||||||
Net income (loss) | $ (101.8) | $ (55.1) | $ (15.1) | $ (15.4) | $ (42.3) | $ (187.4) | |||||
Interest expense on convertible notes | $ 5 | $ 4.8 | $ 4.9 | $ 4.9 | 4.9 | 19.6 | |||||
Net income (loss), if converted - diluted | $ (42.3) | $ (187.4) | |||||||||
Weighted average common shares | 9 | 9 | |||||||||
Less: Weighted average unvested restricted stock | 0 | ||||||||||
Denominator for basic calculation | 9 | 9 | |||||||||
Convertible notes | 0 | ||||||||||
Convertible preferred stock - equivalent common shares | 0 | ||||||||||
Convertible preferred stock - less: share issuance limitation | 0 | ||||||||||
Convertible preferred stock - net allowable shares | 0 | ||||||||||
Subtotal | 0 | ||||||||||
Less: shares excluded in a period of net loss or antidilution | 0 | ||||||||||
Weighted average effect of dilutive securities | 0 | ||||||||||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 9 | 9 | |||||||||
Net income (loss) per share - basic | $ (11.19) | $ (6.05) | $ (1.68) | $ (1.71) | $ (4.70) | $ (20.82) | |||||
Net income (loss) per share - diluted | $ (11.19) | $ (6.05) | $ (1.68) | $ (1.71) | $ (4.70) | $ (20.82) | |||||
Predecessor [Member] | |||||||||||
Income Per Share Calculation [Line Items] | |||||||||||
Net income (loss) | $ 418.9 | $ (28) | $ (50.8) | $ 340.1 | $ 340.1 | ||||||
Interest expense on convertible notes | $ 4.7 | $ 4.7 | $ 4.6 | 14 | |||||||
Net income (loss), if converted - diluted | $ 349.1 | ||||||||||
Weighted average common shares | 5 | ||||||||||
Less: Weighted average unvested restricted stock | 0.1 | ||||||||||
Denominator for basic calculation | 4.9 | ||||||||||
Convertible notes | 1.8 | ||||||||||
Convertible preferred stock - equivalent common shares | 27.2 | ||||||||||
Convertible preferred stock - less: share issuance limitation | 26.3 | ||||||||||
Convertible preferred stock - net allowable shares | 0.9 | ||||||||||
Subtotal | 2.7 | ||||||||||
Less: shares excluded in a period of net loss or antidilution | 0 | ||||||||||
Weighted average effect of dilutive securities | 2.7 | ||||||||||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 7.6 | ||||||||||
Net income (loss) per share - basic | $ 85.49 | $ (5.71) | $ (10.37) | $ 69.41 | |||||||
Net income (loss) per share - diluted | $ 55.51 | $ (5.71) | $ (10.37) | $ 45.93 | |||||||
Convertible Debt [Member] | |||||||||||
Income Per Share Calculation [Line Items] | |||||||||||
Interest expense on convertible notes | $ 9 | $ 0 |
Net Income Per Share Net Income
Net Income Per Share Net Income Per Share (Schedule of Securities Excluded from Net Income Per Share) (Details) - $ / shares | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2015 | |
Options excluded from diluted net income per share | 0 | 200 | 375,000 |
Warrants excluded from diluted net income per share | 250,000 | ||
Exercise price of excluded warrants | $ 187.50 | ||
Minimum [Member] | |||
Exercise price of excluded options | $ 0 | 283.25 | $ 3.90 |
Maximum [Member] | |||
Exercise price of excluded options | $ 357 | $ 5.62 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | |
Class of Stock [Line Items] | |||
Preferred Stock, Dividend Rate, Percentage | 12.75% | ||
Preferred Stock, Shares Authorized | 20,000,000 | 20,000,000 | 20,000,000 |
Preferred Stock, Par or Stated Value Per Share | $ 1 | $ 1 | |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 | |
Common Stock, Par or Stated Value Per Share | $ 0.10 | $ 0.10 | |
Common Stock, Shares, Issued | 9,000,000 | 9,000,000 | 9,000,000 |
Common Stock, Shares Reserved for Future Issuance Under Management Incentive Plan | 462,000 | 1,000,000 | |
Common Class A [Member] | |||
Class of Stock [Line Items] | |||
Common Stock, Shares Authorized | 70,000,000 | 70,000,000 | |
Common Stock, Par or Stated Value Per Share | $ 0.10 | ||
Common Stock, Shares, Issued | 7,563,600 | ||
Common Class B [Member] | |||
Class of Stock [Line Items] | |||
Common Stock, Shares Authorized | 30,000,000 | 30,000,000 | |
Common Stock, Par or Stated Value Per Share | $ 0.10 | ||
Common Stock, Shares, Issued | 1,436,400 |
Commitment and Contingencies (D
Commitment and Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2015 | |
Decontamination and decommissioning obligations | $ 22.6 | |||
ARO financial assurance | 29.4 | |||
Termination benefit costs | $ 8.7 | $ 3.7 | $ 4.5 | $ 13.6 |
Commitments and Contingencies88
Commitments and Contingencies Commitments and Contingencies (Minimum Operating Lease Payments) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Operating Leased Assets [Line Items] | |
Operating leases, future minimum payments due, 2016 | $ 3.4 |
Operating leases, future minimum payments due, 2017 | 2.4 |
Operating leases, future minimum payments due, 2018 | 2.4 |
Operating leases, future minimum payments due, 2019 | 1.6 |
Operating leases, future minimum payments due, 2020 | 0.9 |
Operating leases, future minimum payments due, thereafter | 6.6 |
Operating leases, future minimum payments due | $ 17.3 |
Segment Information Schedule of
Segment Information Schedule of Revenue by Geographic Ares (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue United States | $ 109.1 | $ 280.3 | $ 272.8 | $ 389.4 |
Revenue Japan | 14.4 | 74.8 | 77.8 | 89.2 |
Revenue Belgium | 0 | 35.1 | 55.5 | 35.1 |
Revenue Other Countries | 0.1 | 0.3 | 12.1 | 0.4 |
Revenue Foreign | 14.5 | 110.2 | 145.4 | 124.7 |
Revenues | $ 123.6 | $ 390.5 | $ 418.2 | $ 514.1 |
Segment Information (Segment Re
Segment Information (Segment Reporting Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues [Abstract] | |||||||||||
Total Revenue | $ 123.6 | $ 390.5 | $ 418.2 | $ 514.1 | |||||||
Gross Profit | (41.3) | ||||||||||
Low Enriched Uranium Segment [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Revenue, Goods | 449.3 | ||||||||||
Gross Profit | (39.7) | ||||||||||
Contract Services Segment [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Revenue, Contract Services | 64.8 | ||||||||||
Gross Profit | (1.6) | ||||||||||
Separative Work Units [Member] | Low Enriched Uranium Segment [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Revenue, Goods | 448.5 | ||||||||||
Uranium [Member] | Low Enriched Uranium Segment [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Revenue, Goods | $ 0.8 | ||||||||||
Successor [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Revenue, Contract Services | 21.8 | ||||||||||
Total Revenue | $ 157.9 | $ 29.2 | $ 63.3 | $ 167.8 | 123.6 | 418.2 | |||||
Gross Profit | $ 82.1 | $ (24.4) | $ 4.3 | $ 6.9 | (18.5) | 68.9 | |||||
Successor [Member] | Low Enriched Uranium Segment [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Revenue, Goods | 101.8 | 355.4 | |||||||||
Gross Profit | (17.8) | 70.1 | |||||||||
Successor [Member] | Contract Services Segment [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Revenue, Contract Services | 21.8 | 62.8 | |||||||||
Gross Profit | (0.7) | (1.2) | |||||||||
Successor [Member] | Separative Work Units [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Revenue, Goods | 101 | ||||||||||
Successor [Member] | Separative Work Units [Member] | Low Enriched Uranium Segment [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Revenue, Goods | 101 | 289.9 | |||||||||
Successor [Member] | Uranium [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Revenue, Goods | 0.8 | ||||||||||
Successor [Member] | Uranium [Member] | Low Enriched Uranium Segment [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Revenue, Goods | $ 0.8 | $ 65.5 | |||||||||
Predecessor [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Revenue, Contract Services | 43 | ||||||||||
Total Revenue | $ 120.7 | $ 121.2 | $ 148.6 | 390.5 | |||||||
Gross Profit | $ (5.4) | $ 3.5 | $ (20.9) | (22.8) | |||||||
Predecessor [Member] | Low Enriched Uranium Segment [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Revenue, Goods | 347.5 | ||||||||||
Gross Profit | (21.9) | ||||||||||
Predecessor [Member] | Contract Services Segment [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Revenue, Contract Services | 43 | ||||||||||
Gross Profit | (0.9) | ||||||||||
Predecessor [Member] | Separative Work Units [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Revenue, Goods | 347.5 | ||||||||||
Predecessor [Member] | Separative Work Units [Member] | Low Enriched Uranium Segment [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Revenue, Goods | 347.5 | ||||||||||
Predecessor [Member] | Uranium [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Revenue, Goods | 0 | ||||||||||
Predecessor [Member] | Uranium [Member] | Low Enriched Uranium Segment [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Revenue, Goods | $ 0 |
Segment Information Segment Inf
Segment Information Segment Information (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting [Abstract] | ||
Revenue from top 10 customers | 97.00% | |
Revenue from top 3 customers | 53.00% | |
Revenue from first customer over 10 percent | 25.00% | 31.00% |
Revenue from second customer over 10 percent | 15.00% | 18.00% |
Revenue from third customer over 10 percent | 13.00% | 13.00% |
Revenue from fourth customer over 10 percent | 10.00% | |
Assets LEU segment | $ 795.9 | $ 1,115.2 |
Assets contract services segment | 24.8 | 42.5 |
Assets | $ 820.7 | $ 1,157.7 |
Emergence From Voluntary Reor92
Emergence From Voluntary Reorganization Under Chapter 11 Proceedings (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Class of Stock [Line Items] | ||||||
Total Stock, Shares Authorized | 120,000,000 | 120,000,000 | ||||
Preferred Stock, Shares Authorized | 20,000,000 | 20,000,000 | 20,000,000 | 20,000,000 | ||
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 | ||||
Common Stock, Shares, Issued | 9,000,000 | 9,000,000 | 9,000,000 | 9,000,000 | ||
Long-term debt | $ 240,400 | $ 240,400 | $ 247,600 | $ 240,400 | ||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | 8.00% | |||
Convertible senior notes | $ 530,000 | $ 530,000 | ||||
Convertible Noteholders, Percent of New Common Stock | 79.04% | 79.04% | ||||
Interest Paid | $ 12,000 | $ 15,900 | ||||
Convertible Noteholders, New Notes | $ 200,000 | $ 200,000 | ||||
Preferred Stock, Shares Outstanding | 85,903 | |||||
Convertible preferred stock (Predecessor), 85,900 shares issued | $ 113,900 | |||||
Class of Warrant or Right, Outstanding | 250,000 | |||||
Preferred Investors, Each, Percent of New Common Stock | 7.98% | 7.98% | ||||
Preferred Investors, Aggregate, Percent of New Common Stock | 15.96% | 15.96% | ||||
Preferred Investors, Each, New Notes | $ 20,190 | $ 20,190 | ||||
Government Funding Condition for Preferred Investor Investment | 1,500,000 | 1,500,000 | ||||
Preferred Investors, Aggregate, New Notes | $ 40,380 | $ 40,380 | ||||
Stockholders, Percent of New Common Stock | 5.00% | 5.00% | ||||
Secured Intercompany Financing | $ 48,000 | $ 48,000 | ||||
Funds for Payments under Reorganization Plan | 35,300 | 35,300 | ||||
Funds for Working Capital under Reorganization Plan | 12,700 | $ 12,700 | ||||
Debtor in Possession Financing Repayments | 16,300 | |||||
Professional Fees | $ 3,100 | |||||
Common Class A [Member] | ||||||
Class of Stock [Line Items] | ||||||
Common Stock, Shares Authorized | 70,000,000 | 70,000,000 | 70,000,000 | |||
Common Stock, Shares, Issued | 7,563,600 | |||||
Common Class B [Member] | ||||||
Class of Stock [Line Items] | ||||||
Common Stock, Shares Authorized | 30,000,000 | 30,000,000 | 30,000,000 | |||
Common Stock, Shares, Issued | 1,436,400 |
Fresh Start Accounting (Details
Fresh Start Accounting (Details) - USD ($) $ / shares in Units, shares in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | |
Payments for deferred financing costs | $ 0.7 | |||||
Long-term debt | $ 240,400,000 | 240,400,000 | $ 240,400,000 | $ 247,600,000 | $ 240,400,000 | |
Interest Paid | $ 12,000,000 | 15,900,000 | ||||
Liabilities Subject to Compromise, 3% Convertible Senior Notes and Accrued Interest | 547,400,000 | 547,400,000 | 547,400,000 | |||
Liabilities Subject to Compromise, Convertible Preferred Stock and Paid-in-Kind Dividends Payable | 113,900,000 | 113,900,000 | 113,900,000 | |||
Liabilities Subject to Compromise, Accounts Payable and Accrued Liabilities | 1,600,000 | 1,600,000 | 1,600,000 | |||
Fresh-Start Adjustment, Increase (Decrease), Inventories | 35,400,000 | 35,400,000 | 35,400,000 | |||
Fresh-Start Adjustment, Increase (Decrease), Other Deferred Costs | (73,900,000) | (73,900,000) | (73,900,000) | |||
Fresh-Start Adjustment, Increase (Decrease), Other Current Liabilities | (94,000,000) | (94,000,000) | (94,000,000) | |||
Revaluation of deferred revenue, net of deferred costs | 20,100,000 | |||||
Fresh-Start Adjustment, Increase (Decrease), Amortizable Intangible Assets | 123,500,000 | 123,500,000 | 123,500,000 | |||
Intangible assets | 119,200,000 | 105,800,000 | ||||
Successor [Member] | ||||||
Payments for deferred financing costs | 0 | 0 | ||||
Enterprise Value | 299,700,000 | 299,700,000 | 299,700,000 | |||
Long-term debt | 240,400,000 | 240,400,000 | 240,400,000 | |||
Common Stock, Value, Outstanding | $ 59,300,000 | $ 59,300,000 | $ 59,300,000 | |||
Common Stock, Shares, Outstanding | 9 | 9 | 9 | |||
Shares Issued, Price Per Share | $ 6.59 | $ 6.59 | $ 6.59 | |||
Other Liabilities, Fair Value Disclosure | $ 763,900,000 | $ 763,900,000 | $ 763,900,000 | |||
Reorganization Value | 1,063,600,000 | 1,063,600,000 | 1,063,600,000 | |||
Interest Paid | $ 15,900,000 | |||||
Payments for Fees | 1,500,000 | |||||
Payment of Claims | 1,600,000 | |||||
Payment of Reorganization Adjustments | 19,000,000 | |||||
Intangible assets | 123,500,000 | 123,500,000 | 123,500,000 | |||
Contract-Based Intangible Assets [Member] | ||||||
Intangible assets | $ 51,400,000 | $ 42,600,000 | ||||
Contract-Based Intangible Assets [Member] | Successor [Member] | ||||||
Intangible assets | $ 54,600,000 | $ 54,600,000 | $ 54,600,000 |
Fresh Start Accounting Schedule
Fresh Start Accounting Schedule of Fresh-Start Adjustments (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Current Assets | ||||
Cash and cash equivalents | $ 234 | $ 218.8 | ||
Accounts receivable, net | 26.5 | 58.9 | ||
Inventories | 319.2 | 462.2 | ||
Deferred costs associated with deferred revenue | 63.1 | 82.9 | ||
Other current assets | 15.2 | 19.6 | ||
Total current assets | 658 | 842.4 | ||
Deferred income taxes | 26 | |||
Deposits for surety bonds | 29.8 | 34.8 | ||
Property, Plant and Equipment, Net | 3.5 | 3.5 | ||
Intangible assets | 105.8 | 119.2 | ||
Excess reorganization value | 0 | 137.2 | $ 137.2 | |
Other long-term assets | 23.6 | 20.6 | ||
Total Assets | 820.7 | 1,157.7 | ||
Current Liabilities | ||||
Accounts payable and accrued liabilities | 44.8 | 50.5 | ||
Payables under SWU purchase agreements | 85.4 | 140.1 | ||
Deferred taxes | 26 | |||
Inventories owed to customers and suppliers | 106.8 | 158.9 | ||
Deferred revenue | 83.9 | 100.9 | ||
Convertible preferred stock (Predecessor), 85,900 shares issued | $ 113.9 | |||
Total current liabilities | 350.3 | 450.4 | ||
Long-term debt | 247.6 | 240.4 | 240.4 | |
Postretirement health and life benefit obligations | 184.3 | 211.4 | ||
Pension benefit liabilities | 172.3 | 179.3 | ||
Other long-term liabilities | 31.9 | 32 | ||
Liabilities Subject to Compromise, 3% Convertible Senior Notes and Accrued Interest | 547.4 | |||
Liabilities Subject to Compromise, Convertible Preferred Stock and Paid-in-Kind Dividends Payable | 113.9 | |||
Liabilities Subject to Compromise, Accounts Payable and Accrued Liabilities | 1.6 | |||
Total liabilities | $ 986.4 | $ 1,136.1 | ||
Commitments and contingencies (Note 13) | ||||
Common stock | $ 0.9 | $ 0.9 | ||
Excess of capital over par value | 59 | 58.6 | ||
Retained earnings (deficit) | (229.7) | (42.3) | ||
Accumulated other comprehensive income (loss), net of tax | 4.1 | 4.4 | ||
Total stockholders’ equity (deficit) | (165.7) | 21.6 | ||
Total Liabilities and Stockholders’ Equity (Deficit) | 820.7 | 1,157.7 | ||
Adjustment, Assets | ||||
Inventories | 35.4 | |||
Deferred costs associated with deferred revenue | 73.9 | |||
Intangible assets | 123.5 | |||
Adjustment, Liabilities and Stockholders' Equity (Deficit) | ||||
Deferred revenue | 94 | |||
Liabilities Subject to Compromise, Debt and Accrued Interest | 547.4 | |||
Liabilities Subject to Compromise, Other Liabilities | 113.9 | |||
Liabilities Subject to Compromise, Accounts Payable and Accrued Liabilities | 1.6 | |||
Reorganization Adjustments [Member] | ||||
Current Liabilities | ||||
Accounts payable and accrued liabilities | 4.9 | |||
Total liabilities not subject to compromise | 245.3 | |||
Liabilities Subject to Compromise, 3% Convertible Senior Notes and Accrued Interest | (547.4) | |||
Liabilities Subject to Compromise, Convertible Preferred Stock and Paid-in-Kind Dividends Payable | (113.9) | |||
Liabilities Subject to Compromise, Accounts Payable and Accrued Liabilities | (1.6) | |||
Liabilities subject to compromise | (662.9) | |||
Adjustment, Assets | ||||
Cash and Cash Equivalents | (19) | |||
Other current assets | 0.1 | |||
Total current assets | (18.9) | |||
Other long-term assets | 0.7 | |||
Total Assets | (18.2) | |||
Adjustment, Liabilities and Stockholders' Equity (Deficit) | ||||
Long-term debt | 240.4 | |||
Total liabilities not subject to compromise | 245.3 | |||
Liabilities Subject to Compromise, Debt and Accrued Interest | (547.4) | |||
Liabilities Subject to Compromise, Other Liabilities | (113.9) | |||
Liabilities Subject to Compromise, Accounts Payable and Accrued Liabilities | (1.6) | |||
Liabilities Subject to Compromise | (662.9) | |||
Total liabilities | (417.6) | |||
Common stock | 0.9 | |||
Excess of capital over par value | 58.4 | |||
Accumulated other comprehensive loss, net of tax | (2.2) | |||
Retained earnings (deficit) | 341.9 | |||
Total stockholders' equity (deficit) | 399.4 | |||
Total Liabilties and Stockholders' Equity (Deficit) | (18.2) | |||
Fresh Start Adjustments [Member] | ||||
Current Liabilities | ||||
Total liabilities not subject to compromise | 0.7 | |||
Adjustment, Assets | ||||
Inventories | 35.4 | |||
Deferred costs associated with deferred revenue | (73.9) | |||
Total current assets | (38.5) | |||
Intangible assets | 123.5 | |||
Excess reorganization value | 137.2 | |||
Total Assets | 222.2 | |||
Adjustment, Liabilities and Stockholders' Equity (Deficit) | ||||
Accounts payable and accrued liabilities | 7.3 | |||
Deferred revenue | (94) | |||
Postretirement health and life benefit obligations | 9.2 | |||
Pension benefit liabilities | 78.2 | |||
Total liabilities not subject to compromise | 0.7 | |||
Total liabilities | 0.7 | |||
Common stock | (0.5) | |||
Excess of capital over par value | (1,221.9) | |||
Treasury stock | 38.8 | |||
Accumulated other comprehensive loss, net of tax | 121.7 | |||
Retained earnings (deficit) | 1,283.4 | |||
Total stockholders' equity (deficit) | 221.5 | |||
Total Liabilties and Stockholders' Equity (Deficit) | 222.2 | |||
Predecessor [Member] | ||||
Current Assets | ||||
Cash and cash equivalents | 105.4 | 314.2 | ||
Current Liabilities | ||||
Total stockholders’ equity (deficit) | 59.3 | $ (458.2) | ||
Predecessor [Member] | Reorganization Adjustments [Member] | ||||
Adjustment, Liabilities and Stockholders' Equity (Deficit) | ||||
Excess of capital over par value | 0.4 | |||
Successor [Member] | ||||
Current Assets | ||||
Cash and cash equivalents | 234 | 218.8 | 105.4 | |
Accounts receivable, net | 90 | |||
Inventories | 499.4 | |||
Other current assets | 21.6 | |||
Total current assets | 716.4 | |||
Deposits for surety bonds | 35.9 | |||
Property, Plant and Equipment, Net | 3.7 | |||
Intangible assets | 123.5 | |||
Excess reorganization value | 137.2 | |||
Other long-term assets | 20.5 | |||
Total Assets | 1,037.2 | |||
Current Liabilities | ||||
Accounts payable and accrued liabilities | 79.5 | |||
Payables under SWU purchase agreements | 47.3 | |||
Inventories owed to customers and suppliers | 173.1 | |||
Deferred revenue | 0.7 | |||
Total current liabilities | 300.6 | |||
Long-term debt | 240.4 | |||
Postretirement health and life benefit obligations | 211.6 | |||
Pension benefit liabilities | 174.1 | |||
Other long-term liabilities | 51.2 | |||
Total liabilities not subject to compromise | 977.9 | |||
Total liabilities | 977.9 | |||
Common stock | 0.9 | |||
Excess of capital over par value | 58.4 | |||
Total stockholders’ equity (deficit) | $ (165.7) | $ 21.6 | 59.3 | |
Total Liabilities and Stockholders’ Equity (Deficit) | 1,037.2 | |||
Adjustment, Liabilities and Stockholders' Equity (Deficit) | ||||
Total liabilities not subject to compromise | 977.9 | |||
Pre Eliminations [Member] | Predecessor [Member] | ||||
Current Assets | ||||
Cash and cash equivalents | 124.4 | |||
Accounts receivable, net | 90 | |||
Inventories | 464 | |||
Deferred costs associated with deferred revenue | 73.9 | |||
Other current assets | 21.5 | |||
Total current assets | 773.8 | |||
Deposits for surety bonds | 35.9 | |||
Property, Plant and Equipment, Net | 3.7 | |||
Other long-term assets | 19.8 | |||
Total Assets | 833.2 | |||
Current Liabilities | ||||
Accounts payable and accrued liabilities | 67.3 | |||
Payables under SWU purchase agreements | 47.3 | |||
Inventories owed to customers and suppliers | 173.1 | |||
Deferred revenue | 94.7 | |||
Total current liabilities | 382.4 | |||
Postretirement health and life benefit obligations | 202.4 | |||
Pension benefit liabilities | 95.9 | |||
Other long-term liabilities | 51.2 | |||
Total liabilities not subject to compromise | 731.9 | |||
Liabilities Subject to Compromise, 3% Convertible Senior Notes and Accrued Interest | 547.4 | |||
Liabilities Subject to Compromise, Convertible Preferred Stock and Paid-in-Kind Dividends Payable | 113.9 | |||
Liabilities Subject to Compromise, Accounts Payable and Accrued Liabilities | 1.6 | |||
Liabilities subject to compromise | 662.9 | |||
Total liabilities | 1,394.8 | |||
Common stock | 0.5 | |||
Excess of capital over par value | 1,221.5 | |||
Retained earnings (deficit) | (1,625.3) | |||
Treasury stock | 38.8 | |||
Accumulated other comprehensive income (loss), net of tax | (119.5) | |||
Total stockholders’ equity (deficit) | (561.6) | |||
Total Liabilities and Stockholders’ Equity (Deficit) | 833.2 | |||
Adjustment, Liabilities and Stockholders' Equity (Deficit) | ||||
Total liabilities not subject to compromise | 731.9 | |||
Liabilities Subject to Compromise, Debt and Accrued Interest | 547.4 | |||
Liabilities Subject to Compromise, Other Liabilities | 113.9 | |||
Liabilities Subject to Compromise, Accounts Payable and Accrued Liabilities | 1.6 | |||
Liabilities Subject to Compromise | $ 662.9 |
Reorganization Items, Net (Deta
Reorganization Items, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Dec. 31, 2014 | Sep. 30, 2014 | |
Reorganizations Items, Net [Abstract] | ||
Reorganization items, professional fees | $ 1.5 | $ 22.3 |
Reorganization items, expense of deferred financing costs | 1.2 | |
Gain on cancellation of convertible senior notes, net | (284.7) | |
Gain on cancellation of convertible preferred stock, net | (64.1) | |
Expense of unamortized restricted stock | 0.4 | |
Gain related to the freeze of SERP benefits | (2.2) | |
Revaluation of deferred revenue, net of deferred costs | (20.1) | |
Revaluation of inventory | (35.4) | |
Valuation of intangible assets | (260.7) | |
Remeasurement of pension and postretirement benefit obligations | 94.7 | |
Elimination of Predecessor Company accumulated other comprehensive loss related to pension and postretirement benefit obligations | 121.7 | |
Reorganization items, net | 1.5 | (426.9) |
Reorganization items, net, paid | $ 8.2 | $ 15.6 |
Quarterly Results of Operatio96
Quarterly Results of Operations (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Total Revenue | $ 123.6 | $ 390.5 | $ 418.2 | $ 514.1 | |||||||
Gross profit (loss) | (41.3) | ||||||||||
Impairment of excess reorganization value | 137.2 | ||||||||||
Special charges for workforce reductions | (2.1) | (2.1) | (13.2) | ||||||||
Reorganization items, net | 1.5 | (426.9) | |||||||||
Provision (benefit) for income taxes | (2.4) | (1) | (0.3) | ||||||||
Predecessor [Member] | |||||||||||
Total Revenue | $ 120.7 | $ 121.2 | $ 148.6 | 390.5 | |||||||
Cost of sales | 126.1 | 117.7 | 169.5 | 413.3 | |||||||
Gross profit (loss) | (5.4) | 3.5 | (20.9) | (22.8) | |||||||
Advanced technology costs | 5.3 | 18 | 33.3 | 56.6 | |||||||
Selling, general and administrative | 10.4 | 10.1 | 11.7 | 32.2 | |||||||
Amortization of intangible assets | 0 | 0 | 0 | 0 | |||||||
Impairment of excess reorganization value | 0 | ||||||||||
Special charges for workforce reductions | (0.1) | (2.5) | (0.5) | (2.1) | |||||||
Other (income) | 4.8 | 8.4 | 26.2 | (39.4) | |||||||
Operating (loss) | (16.4) | (18.7) | (39.2) | (74.3) | |||||||
Interest expense | 4.7 | 4.7 | 4.6 | 14 | |||||||
Interest (income) | (0.1) | 0 | (0.4) | (0.5) | |||||||
Reorganization items, net | (440) | 4.7 | 8.4 | ||||||||
Provision (benefit) for income taxes | 0.1 | (0.1) | (1) | (1) | |||||||
Net income (loss) | $ 418.9 | $ (28) | $ (50.8) | $ 340.1 | $ 340.1 | ||||||
Net income (loss) per share - basic | $ 85.49 | $ (5.71) | $ (10.37) | $ 69.41 | |||||||
Net income (loss) per share - diluted | $ 55.51 | $ (5.71) | $ (10.37) | $ 45.93 | |||||||
Successor [Member] | |||||||||||
Total Revenue | $ 157.9 | $ 29.2 | $ 63.3 | $ 167.8 | 123.6 | 418.2 | |||||
Cost of sales | 75.8 | 53.6 | 59 | 160.9 | 142.1 | 349.3 | |||||
Gross profit (loss) | 82.1 | (24.4) | 4.3 | 6.9 | (18.5) | 68.9 | |||||
Advanced technology costs | 25.3 | 1.9 | 4 | 1.8 | 4.7 | 33 | |||||
Selling, general and administrative | 10.5 | 13.5 | 6.3 | 12.3 | 10.2 | 42.6 | |||||
Amortization of intangible assets | 6.3 | 1.1 | 2 | 4 | 4.3 | 13.4 | |||||
Impairment of excess reorganization value | 137.2 | 0 | 0 | 0 | 0 | 137.2 | |||||
Special charges for workforce reductions | (0.1) | (9.8) | (2.9) | (0.6) | (2.1) | (13.2) | |||||
Other (income) | 0.3 | 0.3 | 0.7 | 0.8 | (1.3) | (2.1) | |||||
Operating (loss) | (96.8) | (50.4) | (10.2) | (11) | (38.5) | (168.4) | |||||
Interest expense | 5 | 4.8 | 4.9 | 4.9 | 4.9 | 19.6 | |||||
Interest (income) | 0 | (0.1) | 0 | (0.2) | (0.2) | (0.3) | |||||
Reorganization items, net | 1.5 | ||||||||||
Provision (benefit) for income taxes | 0 | 0 | 0 | (0.3) | (2.4) | (0.3) | |||||
Net income (loss) | $ (101.8) | $ (55.1) | $ (15.1) | $ (15.4) | $ (42.3) | $ (187.4) | |||||
Net income (loss) per share - basic | $ (11.19) | $ (6.05) | $ (1.68) | $ (1.71) | $ (4.70) | $ (20.82) | |||||
Net income (loss) per share - diluted | $ (11.19) | $ (6.05) | $ (1.68) | $ (1.71) | $ (4.70) | $ (20.82) |