Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 30, 2016 | |
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-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 9,000,000 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Current Assets | ||
Cash and cash equivalents | $ 179.7 | $ 234 |
Accounts receivable, net | 55.9 | 26.5 |
Inventories | 211.3 | 319.2 |
Deferred costs associated with deferred revenue | 72.7 | 63.1 |
Other current assets | 15.1 | 15.2 |
Total current assets | 534.7 | 658 |
Property, Plant and Equipment, Net | 4.9 | 3.5 |
Deposits for surety bonds | 29.8 | 29.8 |
Intangible assets | 102.5 | 105.8 |
Other long-term assets | 23 | 23 |
Total Assets | 694.9 | 820.1 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 35.8 | 44.8 |
Payables under SWU purchase agreements | 24.4 | 85.4 |
Inventories owed to customers and suppliers | 47.9 | 106.8 |
Deferred revenue | 97.7 | 83.9 |
Decontamination and decommissioning obligations | 29.4 | 29.4 |
Total current liabilities | 235.2 | 350.3 |
Long-term debt | 253.9 | 247 |
Postretirement health and life benefit obligations | 184 | 184.3 |
Pension benefit liabilities | 171.5 | 172.3 |
Other long-term liabilities | 30.5 | 31.9 |
Total liabilities | $ 875.1 | $ 985.8 |
Commitments and contingencies (Note 13) | ||
Total stockholders’ equity (deficit) | $ (180.2) | $ (165.7) |
Total Liabilities and Stockholders’ Equity (Deficit) | $ 694.9 | $ 820.1 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenue: | ||
Contract services | $ 16.4 | $ 21 |
Total Revenue | 90 | 167.8 |
Cost of Sales: | ||
Separative work units and uranium | 65.5 | 139.6 |
Contract services | 8.7 | 21.3 |
Total cost of sales | 74.2 | 160.9 |
Gross profit (loss) | 15.8 | 6.9 |
Advanced technology costs | 12 | 1.8 |
Selling, general and administrative | 11.4 | 12.3 |
Amortization of intangible assets | 3.2 | 4 |
Special charges for workforce reductions | 0 | 0.6 |
Other (income) | (0.3) | (0.8) |
Operating (loss) | (10.5) | (11) |
Interest expense | 5 | 4.9 |
Interest (income) | (0.3) | (0.2) |
Income (loss) before income taxes | (15.2) | (15.7) |
Provision (benefit) for income taxes | (0.6) | (0.3) |
Net income (loss) | $ (14.6) | $ (15.4) |
Net income (loss) per share - basic and diluted | $ (1.60) | $ (1.71) |
Weighted-average number of shares outstanding: | ||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 9.1 | 9 |
Separative Work Units [Member] | ||
Revenue: | ||
Revenue, Goods | $ 59.3 | $ 103.6 |
Uranium [Member] | ||
Revenue: | ||
Revenue, Goods | $ 14.3 | $ 43.2 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Net income (loss) | $ (14.6) | $ (15.4) |
Amortization of prior service costs (credits) | (0.1) | (0.1) |
Other comprehensive income (loss), before tax | (0.1) | (0.1) |
Income tax expense related to items of other comprehensive income | 0 | 0 |
Other comprehensive income (loss), net of tax | (0.1) | (0.1) |
Comprehensive income (loss) | $ (14.7) | $ (15.5) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash Flows from Operating Activities | ||
Net income (loss) | $ (14.6) | $ (15.4) |
Adjustments to reconcile net income (loss) to net cash (used in) operating activities: | ||
Depreciation and amortization | 3.6 | 4.2 |
Interest on paid-in-kind toggle notes | 3.4 | 1.8 |
Gain on sale of assets | (0.3) | (0.8) |
Inventory valuation adjustment | 0.5 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable – (increase) decrease | (29.4) | 37.2 |
Inventories, net – (increase) decrease | 48.5 | 124.1 |
Payables under SWU purchase agreements – increase (decrease) | (61) | (140.1) |
Deferred revenue, net of deferred costs – increase (decrease) | 4.2 | (1.9) |
Accounts payable and other liabilities – (decrease) | (9.8) | (8.6) |
Other, net | 0 | 1.8 |
Net Cash (Used in) Operating Activities | (54.9) | 2.3 |
Cash Flows Provided by Investing Activities | ||
Deposits for surety bonds - net (increase) decrease | 0 | 3.7 |
Proceeds from sales of assets | 0.6 | 0.2 |
Net Cash Provided by Investing Activities | 0.6 | 3.9 |
Cash Flows Used in Financing Activities | ||
Net (Decrease) | (54.3) | 6.2 |
Cash and Cash Equivalents at Beginning of Period | 234 | 218.8 |
Cash and Cash Equivalents at End of Period | 179.7 | 225 |
Supplemental Cash Flow Information: | ||
Interest paid | 3.1 | 6 |
Conversion of interest payable-in-kind to long-term debt | $ 3.4 | $ 1.8 |
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] | Accumulated Other Comprehensive Income (Loss) [Member] |
Beginning Balance at Dec. 31, 2014 | $ 21.6 | $ 0.9 | $ 58.6 | $ (42.3) | $ 4.4 |
Net income (loss) | (15.4) | (15.4) | |||
Other comprehensive income, net of tax (Note 14) | (0.1) | (0.1) | |||
Restricted and other common stock issued, net of amortization | 0.1 | 0.1 | |||
Ending Balance at Mar. 31, 2015 | 6.2 | 0.9 | 58.7 | (57.7) | 4.3 |
Beginning Balance at Dec. 31, 2015 | (165.7) | 0.9 | 59 | (229.7) | 4.1 |
Net income (loss) | (14.6) | ||||
Other comprehensive income, net of tax (Note 14) | (0.1) | (0.1) | |||
Restricted and other common stock issued, net of amortization | 0.2 | 0.2 | |||
Ending Balance at Mar. 31, 2016 | $ (180.2) | $ 0.9 | $ 59.2 | $ (244.3) | $ 4 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION The unaudited condensed consolidated financial statements of Centrus Energy Corp. (“Centrus” or the “Company”), which include the accounts of the Company, its principal subsidiary United States Enrichment Corporation (“Enrichment Corp.”) and its other subsidiaries, as of and for the three months ended March 31, 2016 and 2015 have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The unaudited condensed consolidated financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the financial results for the interim period. Certain information and notes normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been omitted pursuant to such rules and regulations. All material intercompany transactions have been eliminated. Certain amounts have been reclassified to conform to the current presentation. Operating results for the three months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. The unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes and Management's Discussion and Analysis of Financial Condition and Results of Operations included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2015. New Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued comprehensive guidance for revenue recognition. The core principle of the 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 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 standard requires additional disclosures to describe the nature, amount and timing of revenue and cash flows arising from contracts. The 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 standard 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 standard is effective for annual and interim periods beginning after December 15, 2016. Early adoption is permitted. The implementation of the 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 standard 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. Centrus adopted the standard with retrospective application beginning with the first quarter of 2016. The reclassification of debt issuance costs did not have a material impact on Centrus’ consolidated financial statements. 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 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. In March 2016, the FASB issued guidance for stock compensation that simplifies several aspects of the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The standard is effective for interim and annual reporting periods beginning after December 15, 2016. Early adoption is permitted. Centrus is evaluating the impact of adopting this new guidance on its consolidated financial statements. |
Transition Charges
Transition Charges | 3 Months Ended |
Mar. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Special Charges | SPECIAL CHARGES In September 2015, Centrus completed a successful three-year demonstration of the existing American Centrifuge technology at its facility in Piketon, Ohio. The demonstration effort was funded by the U.S. government through our contract with UT-Battelle, LLC (“UT-Battelle”), the operator of Oak Ridge National Laboratory (“ORNL”). Centrus notified its American Centrifuge employees in September 2015 of possible layoffs beginning in November 2015 as a result of reduced program funding. 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 Gaseous Diffusion Plant (the “Paducah GDP”) and evolving business needs have resulted in workforce reductions since July 2013. In the three months ended March 31, 2015, special charges included related termination benefits of $0.9 million , less $0.3 million for severance paid by the Company and invoiced to the U.S. Department of Energy (“DOE”) for its share of employee severance pursuant to the USEC Privatization Act. Centrus made payments for termination benefits of $1.8 million in the three months ended March 31, 2016, and the related balance sheet liability declined from $8.7 million as of December 31, 2015 to $6.9 million as of March 31, 2016. |
Contract Services and Advanced
Contract Services and Advanced Technology Costs | 3 Months Ended |
Mar. 31, 2016 | |
Research and Development [Abstract] | |
Contract Services and Advanced Technology Costs and Other Income | CONTRACT SERVICES AND ADVANCED TECHNOLOGY COSTS The contract services segment includes Revenue and Cost of Sales for American Centrifuge work Centrus performs as a contractor to UT-Battelle. The Company’s current contract signed in March 2016 with UT-Battelle provides for continued development work at the Company’s facilities in Oak Ridge, Tennessee, through September 30, 2016. The contract is a firm, fixed-price contract that provides for payments for monthly reports of approximately $2.7 million per month, down from approximately $6.9 million per month. Although the Company’s prior 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. The new contract signed in March 2016 provided for payment for reports related to work performed since October 1, 2015. Revenue in the three months ended March 31, 2016 includes $8.1 million for March reports on work performed in the three months ended December 31, 2015, and $8.1 million for March reports on work performed in the three months ended March 31, 2016. Expenses for contract work performed in the three months ended March 31, 2016 are included in Cost of Sales . Expenses for work performed in the three months ended December 31, 2015 before there was a contract were included in Advanced Technology Costs in 2015. American Centrifuge expenses that are outside of our contracts with UT-Battelle, including demobilization and maintenance costs, are included in Advanced Technology Costs . In addition to severance costs (see Note 2) and demobilization costs, Centrus will incur expenditures associated with the decontamination and decommissioning (“D&D”) of the Piketon facility in accordance with the requirements of the U.S Nuclear Regulatory Commission (“NRC”) and DOE (see Note 13). |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Mar. 31, 2016 | |
Accounts Receivable, Net, Current [Abstract] | |
Accounts Receivable | RECEIVABLES March 31, December 31, (in millions) Utility customers and other $ 38.1 $ 24.7 Contract services, primarily DOE 17.8 1.8 Accounts receivable $ 55.9 $ 26.5 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 March 31, 2016 and December 31, 2015 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 March 31, 2016 and December 31, 2015, including updated submissions for final indirect rates and incurred costs, as well as invoices for interest. 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 March 31, 2016 and December 31, 2015 is included in other long-term liabilities pending resolution of the long-term receivables from DOE described above. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2016 | |
Inventory, Net [Abstract] | |
Inventories | INVENTORIES Centrus holds uranium at licensed locations in the form of natural uranium and as the uranium component of low enriched uranium (“LEU”). Centrus also holds separative work units (“SWU”) as the SWU component of LEU at licensed locations (e.g., fabricators) to meet book transfer requests by customers. Fabricators process LEU into fuel for use in nuclear reactors. Components of inventories follow (in millions): March 31, 2016 December 31, 2015 Current Assets Current Liabilities (a) Inventories, Net Current Assets Current Liabilities (a) Inventories, Net Separative work units $ 169.9 $ 16.9 $ 153.0 $ 221.5 $ 33.1 $ 188.4 Uranium 41.2 31.0 10.2 97.5 73.7 23.8 Materials and supplies 0.2 — 0.2 0.2 — 0.2 $ 211.3 $ 47.9 $ 163.4 $ 319.2 $ 106.8 $ 212.4 (a) Inventories owed to customers and suppliers, included in current liabilities, consist primarily of SWU and uranium inventories owed to fabricators. Inventories are valued at the lower of cost or net realizable value. In the three months ended March 31, 2016, a valuation adjustment of $0.5 million was charged to cost of sales for the Company’s uranium inventory to reflect declines in uranium market price indicators. Uranium Provided by Customers and Suppliers Centrus held uranium with estimated values of approximately $0.4 billion as of March 31, 2016 and as of December 31, 2015 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 | 3 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT March 31, December 31, (in millions) Property, plant and equipment, gross $ 5.6 $ 4.0 Accumulated depreciation (0.7 ) (0.5 ) Property, plant and equipment, net $ 4.9 $ 3.5 Capital expenditures include items in accounts payable and accrued liabilities of $1.6 million at March 31, 2016 for which cash is paid in subsequent periods. |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2016 | |
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 asset related to the sales order book is amortized as the order book valued at emergence is reduced, principally as a result of deliveries to customers. The intangible asset related to customer relationships 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 condensed consolidated statement of operations. March 31, 2016 December 31, 2015 (in millions) Gross Carrying Amount Accumulated Amortization Net Amount Gross Carrying Amount Accumulated Amortization Net Amount Sales order book $ 54.6 $ 14.1 $ 40.5 $ 54.6 $ 12.0 $ 42.6 Customer relationships 68.9 6.9 62.0 68.9 5.7 63.2 Total $ 123.5 $ 21.0 $ 102.5 $ 123.5 $ 17.7 $ 105.8 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Long-term debt as of March 31, 2016 and December 31, 2015 consisted of the following (in millions): March 31, 2016 December 31, 2015 8% paid-in-kind toggle notes $ 254.4 $ 247.6 Less unamortized deferred financing costs 0.5 0.6 Long-term debt $ 253.9 $ 247.0 The 8.0% paid-in-kind (“PIK”) toggle notes (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 principal amount is increased by any payment of interest in the form of PIK payments. 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 periods ending March 31, 2016 and September 30, 2016, the Company has elected to pay interest in the form of PIK payments at 5.5% per annum. As such, interest for the semi-annual period ended March 31, 2016 was paid as $3.1 million in cash and $6.8 million in PIK payments, and the principal balance increased accordingly to $254.4 million . Financing costs for the issuance of the PIK Toggle Notes were 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 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, conditional, and limited basis by Enrichment Corp. Enrichment Corp will be released from its guarantee without the consent of the holders of the PIK Toggle Notes upon the occurrence of certain termination events (other than with respect to an unconditional interest claim). 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 Employee Retirement Income Security Act (“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. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2016 | |
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) March 31, 2016 December 31, 2015 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 179.7 $ — $ — $ 179.7 $ 234.0 $ — $ — $ 234.0 Deferred compensation asset (a) — 1.4 — 1.4 — 1.5 — 1.5 Liabilities: Deferred compensation obligation (a) — 1.2 — 1.2 — 1.4 — 1.4 (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 March 31, 2016 and December 31, 2015, the balance sheet carrying amounts for 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 $62.3 million at March 31, 2016 and $36.9 million at December 31, 2015 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 | 3 Months Ended |
Mar. 31, 2016 | |
General Discussion of Pension and Other Postretirement Benefits [Abstract] | |
Pension and Postretirement Health and Life Benefits | PENSION AND POSTRETIREMENT HEALTH AND LIFE BENEFITS The components of net periodic benefit cost (credit) for the pension plans were as follows (in millions): Three Months Ended March 31, 2016 2015 Service costs $ 0.9 $ 1.0 Interest costs 8.9 9.3 Expected return on plan assets (gains) (10.5 ) (12.2 ) Net periodic benefit (credit) $ (0.7 ) $ (1.9 ) The components of net periodic benefit cost for the postretirement health and life benefit plans were as follows (in millions): Three Months Ended March 31, 2016 2015 Service costs $ — $ 0.1 Interest costs 2.1 2.2 Expected return on plan assets (gains) (0.1 ) (0.2 ) Amortization of prior service (credits), net (0.1 ) (0.1 ) Net periodic benefit cost $ 1.9 $ 2.0 Centrus paid $1.3 million to participants of the non-qualified defined benefit pension plans in the three months ended March 31, 2016, and expects to make payments of $2.9 million in the remainder of 2016. The Company does not expect there to be required cash contributions for the qualified defined benefit pension plans in 2016 under ERISA, and therefore, does not expect to make contributions to these plans in 2016. The Company expects to contribute $5.4 million in 2016 to the postretirement health and life benefit plans. There is no required contribution for the postretirement health and life benefit plans under ERISA. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2016 | |
Share-based Compensation [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION A summary of stock-based compensation costs follows (in millions): Three Months Ended March 31, 2016 2015 Total stock-based compensation costs: Restricted stock and restricted stock units $ 0.1 $ 0.1 Stock options, performance awards and other 0.1 — Expense included primarily in selling, general and administrative expense $ 0.2 $ 0.1 Total recognized tax benefit $ — $ — As of March 31, 2016, there was $0.9 million of unrecognized compensation cost, adjusted for estimated forfeitures, of which $0.9 million relates to stock options and less than $0.1 million relates to unvested restricted stock units. Unrecognized compensation cost is expected to be recognized over a weighted-average period of 2.6 years. Stock-based compensation cost is measured at the grant date, based on the fair value of the award using the Black-Scholes option pricing model, and is recognized over the vesting period. Stock options vest and become exercisable in equal annual installments over a three or four year period and expire 10 years from the date of grant. Assumptions used in the Black-Scholes option pricing model to value option grants follow. There were no options granted in the three months ended March 31, 2016. Three Months Ended March 31, 2016 2015 Risk-free interest rate — 1.91% Expected volatility — 75% Expected option life (years) — 6 Weighted-average grant date fair value — $2.89 Options granted — 300,000 |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Mar. 31, 2016 | |
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. Three Months Ended March 31, (in millions, except per share amounts) 2016 2015 Numerator for basic and diluted calculation: Net loss $ (14.6 ) $ (15.4 ) Denominator: Weighted average common shares 9.1 9.0 Denominator for basic calculation 9.1 9.0 Weighted average effect of dilutive securities: Stock compensation awards (a) — — Denominator for diluted calculation 9.1 9.0 Net loss per share - basic and diluted $ (1.60 ) $ (1.71 ) (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 three months ended March 31, 2015. There were no common stock equivalents in the three months ended March 31, 2016. Options 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: Three Months Ended March 31, 2016 2015 Options excluded from diluted net income per share 475,000 85,000 Exercise price of excluded options $ 2.71 to $ 5.62 $ 5.62 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES 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). 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. While 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 the qualified pension plans in the ordinary course and expects to do so, the Company has been in discussions with the PBGC to resolve the outstanding issues. There is no assurance that the Company and PBGC will reach agreement or that the PBGC will agree with the Company’s approach. 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 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. 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 American Centrifuge project. 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 Piketon facility, unless otherwise consented to by DOE, by the conclusion of the lease term. Effective October 1, 2015, the U.S. government discontinued funding of the American Centrifuge demonstration cascade at Piketon. On February 19, 2016, the Company announced its decision to commence with the D&D of the Piketon facility. Estimated costs for D&D have been accrued and the balance of the liability was $29.4 million as of March 31, 2016 and December 31, 2015. The D&D work began in the second quarter of 2016 and is expected to continue into the first quarter of 2017. Centrus is required to provide financial assurance to the NRC and DOE for D&D costs under a regulatorily-prescribed methodology that includes potential contingent costs and reserves. As of March 31, 2016 and December 31, 2015, 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 when surety bonds are reduced and/or cancelled as the Company fulfills its D&D and lease obligations. While Centrus currently intends to complete NRC D&D requirements, it has not made a decision on lease turnover. Centrus is continuing to evaluate future uses for the site. If construction of the American Centrifuge Plant at Piketon is resumed or if the site is otherwise utilized, the liability for D&D and financial assurance requirements would increase commensurate with facility construction and operations. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss) (Notes) | 3 Months Ended |
Mar. 31, 2016 | |
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 prior service costs (credits), net, is reclassified from AOCI and included in the computation of net periodic benefit cost (credit) as detailed in Note 10. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | |
Segment Information | SEGMENT INFORMATION 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 under a fixed-price agreement as a contractor to UT-Battelle. The contract services segment also includes limited services provided by Centrus to DOE and its contractors at the Piketon facility. Gross profit is Centrus’ measure for segment reporting. There were no intersegment sales in the periods presented. For additional details on each segment, refer to Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations . Three Months Ended March 31, 2016 2015 (in millions) Revenue LEU segment: Separative work units $ 59.3 $ 103.6 Uranium 14.3 43.2 73.6 146.8 Contract services segment 16.4 21.0 Revenue $ 90.0 $ 167.8 Segment Gross Profit LEU segment $ 8.1 $ 7.2 Contract services segment 7.7 (0.3 ) Gross profit $ 15.8 $ 6.9 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Accounts Receivable, Net, Current [Abstract] | |
Schedule of Accounts Receivable | March 31, December 31, (in millions) Utility customers and other $ 38.1 $ 24.7 Contract services, primarily DOE 17.8 1.8 Accounts receivable $ 55.9 $ 26.5 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Inventory, Net [Abstract] | |
Schedule of Inventories | Components of inventories follow (in millions): March 31, 2016 December 31, 2015 Current Assets Current Liabilities (a) Inventories, Net Current Assets Current Liabilities (a) Inventories, Net Separative work units $ 169.9 $ 16.9 $ 153.0 $ 221.5 $ 33.1 $ 188.4 Uranium 41.2 31.0 10.2 97.5 73.7 23.8 Materials and supplies 0.2 — 0.2 0.2 — 0.2 $ 211.3 $ 47.9 $ 163.4 $ 319.2 $ 106.8 $ 212.4 (a) Inventories owed to customers and suppliers, included in current liabilities, consist primarily of SWU and uranium inventories owed to fabricators. |
Property, Plant and Equipment24
Property, Plant and Equipment Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | March 31, December 31, (in millions) Property, plant and equipment, gross $ 5.6 $ 4.0 Accumulated depreciation (0.7 ) (0.5 ) Property, plant and equipment, net $ 4.9 $ 3.5 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Excess Reorganization Value [Table Text Block] | March 31, 2016 December 31, 2015 (in millions) Gross Carrying Amount Accumulated Amortization Net Amount Gross Carrying Amount Accumulated Amortization Net Amount Sales order book $ 54.6 $ 14.1 $ 40.5 $ 54.6 $ 12.0 $ 42.6 Customer relationships 68.9 6.9 62.0 68.9 5.7 63.2 Total $ 123.5 $ 21.0 $ 102.5 $ 123.5 $ 17.7 $ 105.8 |
Debt Schedule of Debt (Tables)
Debt Schedule of Debt (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | Long-term debt as of March 31, 2016 and December 31, 2015 consisted of the following (in millions): March 31, 2016 December 31, 2015 8% paid-in-kind toggle notes $ 254.4 $ 247.6 Less unamortized deferred financing costs 0.5 0.6 Long-term debt $ 253.9 $ 247.0 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Instruments Recorded at Fair Value | Financial Instruments Recorded at Fair Value (in Millions) March 31, 2016 December 31, 2015 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 179.7 $ — $ — $ 179.7 $ 234.0 $ — $ — $ 234.0 Deferred compensation asset (a) — 1.4 — 1.4 — 1.5 — 1.5 Liabilities: Deferred compensation obligation (a) — 1.2 — 1.2 — 1.4 — 1.4 (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 He28
Pension and Postretirement Health and Life Benefits (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
General Discussion of Pension and Other Postretirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | The components of net periodic benefit cost (credit) for the pension plans were as follows (in millions): Three Months Ended March 31, 2016 2015 Service costs $ 0.9 $ 1.0 Interest costs 8.9 9.3 Expected return on plan assets (gains) (10.5 ) (12.2 ) Net periodic benefit (credit) $ (0.7 ) $ (1.9 ) The components of net periodic benefit cost for the postretirement health and life benefit plans were as follows (in millions): Three Months Ended March 31, 2016 2015 Service costs $ — $ 0.1 Interest costs 2.1 2.2 Expected return on plan assets (gains) (0.1 ) (0.2 ) Amortization of prior service (credits), net (0.1 ) (0.1 ) Net periodic benefit cost $ 1.9 $ 2.0 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Share-based Compensation [Abstract] | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block] | Three Months Ended March 31, 2016 2015 Total stock-based compensation costs: Restricted stock and restricted stock units $ 0.1 $ 0.1 Stock options, performance awards and other 0.1 — Expense included primarily in selling, general and administrative expense $ 0.2 $ 0.1 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 follow. There were no options granted in the three months ended March 31, 2016. Three Months Ended March 31, 2016 2015 Risk-free interest rate — 1.91% Expected volatility — 75% Expected option life (years) — 6 Weighted-average grant date fair value — $2.89 Options granted — 300,000 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Net Income Per Share | Three Months Ended March 31, (in millions, except per share amounts) 2016 2015 Numerator for basic and diluted calculation: Net loss $ (14.6 ) $ (15.4 ) Denominator: Weighted average common shares 9.1 9.0 Denominator for basic calculation 9.1 9.0 Weighted average effect of dilutive securities: Stock compensation awards (a) — — Denominator for diluted calculation 9.1 9.0 Net loss per share - basic and diluted $ (1.60 ) $ (1.71 ) |
Schedule of Securities Excluded from Net Income Per Share | Three Months Ended March 31, 2016 2015 Options excluded from diluted net income per share 475,000 85,000 Exercise price of excluded options $ 2.71 to $ 5.62 $ 5.62 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | |
Segment Reporting Information | Three Months Ended March 31, 2016 2015 (in millions) Revenue LEU segment: Separative work units $ 59.3 $ 103.6 Uranium 14.3 43.2 73.6 146.8 Contract services segment 16.4 21.0 Revenue $ 90.0 $ 167.8 Segment Gross Profit LEU segment $ 8.1 $ 7.2 Contract services segment 7.7 (0.3 ) Gross profit $ 15.8 $ 6.9 |
Transition Charges (Narrative)(
Transition Charges (Narrative)(Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2016 | Sep. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | |
DOE Share of Paducah Termination Benefit Costs | $ 0.3 | |||
Payments for one-time termination benefits | $ (1.8) | |||
Restructuring liability | $ 6.9 | $ 8.7 | ||
Contract Reduction [Member] | ||||
Termination benefit costs | $ 8.7 | |||
Other Restructuring [Member] | ||||
Termination benefit costs | $ 0.9 |
Contract Services and Advance33
Contract Services and Advanced Technology Costs (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Mar. 31, 2016 | Sep. 30, 2015 | |
Research and Development [Abstract] | ||
UT-Battelle contract monthly revenue | $ 2.7 | |
ACTDO contract monthly revenue | $ 6.9 | |
UT-Battelle contract revenue current work | 8.1 | |
UT-Battelle contract revenue past work | $ 8.1 |
Accounts Receivable (Schedule o
Accounts Receivable (Schedule of Accounts Receivable) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Accounts Receivable, Net, Current [Abstract] | ||
Utility Customer Receivables | $ 38.1 | $ 24.7 |
Contract Services Customer Receivables | 17.8 | 1.8 |
Accounts Receivable, Net | $ 55.9 | $ 26.5 |
Accounts Receivable (Narrative)
Accounts Receivable (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Other long-term liabilities | $ 30.5 | $ 31.9 |
Government [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, Gross, Noncurrent | 78 | 78 |
Accounts Receivable, Net, Noncurrent | 23 | 23 |
Other long-term liabilities | $ 19.4 | $ 19.4 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventories) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Inventory, Net [Abstract] | ||
Separative work units inventory | $ 169.9 | $ 221.5 |
Uranium inventory | 41.2 | 97.5 |
Materials and supplies | 0.2 | 0.2 |
Inventories | 211.3 | 319.2 |
Separative work units owed to customers and suppliers | 16.9 | 33.1 |
Uranium owed to customers and suppliers | 31 | 73.7 |
Inventories owed to customers and suppliers | 47.9 | 106.8 |
Separative work units net of liability | 153 | 188.4 |
Uranium inventory net of liability | 10.2 | 23.8 |
Inventories, net | $ 163.4 | $ 212.4 |
Inventories (Narrative) (Detail
Inventories (Narrative) (Details) - USD ($) $ in Billions | Mar. 31, 2016 | Dec. 31, 2015 |
Inventory, Net [Abstract] | ||
Inventories provided by customers and suppliers | $ 0.4 | $ 0.4 |
Property, Plant and Equipment38
Property, Plant and Equipment Property, Plant and Equipment (Tables) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Abstract] | ||
Property, Plant and Equipment, Gross | $ 5.6 | $ 4 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (0.7) | (0.5) |
Property, Plant and Equipment, Net | $ 4.9 | $ 3.5 |
Property, Plant and Equipment39
Property, Plant and Equipment Property, Plant and Equipment (Narrative) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Property, Plant and Equipment [Abstract] | |
Capital Expenditures Incurred but Not yet Paid | $ 1.6 |
Intangible Assets Schedule of I
Intangible Assets Schedule of Intangible Assets and Excess Reorganization Value (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, gross | $ 123.5 | $ 123.5 |
Accumulated intangible asset amortization | (21) | (17.7) |
Amortizable intangible assets, net | $ 102.5 | 105.8 |
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 | (14.1) | (12) |
Amortizable intangible assets, net | 40.5 | 42.6 |
Customer-Related Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, gross | 68.9 | 68.9 |
Accumulated intangible asset amortization | (6.9) | (5.7) |
Amortizable intangible assets, net | $ 62 | $ 63.2 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Dec. 31, 2015 | |
Long-term debt, gross | $ 254.4 | $ 254.4 | $ 247.6 | |
Debt instrument interest rate | 8.00% | 8.00% | ||
Debt Interest Rate, PIK | 5.50% | 5.50% | ||
Paid-in-Kind Interest | $ 3.4 | $ 1.8 | $ 6.8 | |
Interest Paid | $ 3.1 |
Debt Schedule of Debt (Details)
Debt Schedule of Debt (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 254.4 | $ 247.6 |
Deferred financing costs | 0.5 | 0.6 |
Long-term debt | $ 253.9 | $ 247 |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Instruments Recorded at Fair Value) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Cash and cash equivalents | $ 179.7 | $ 234 | $ 225 | $ 218.8 |
Deferred compensation asset | 1.4 | 1.5 | ||
Deferred compensation obligation | 1.2 | 1.4 | ||
Level 1 [Member] | ||||
Cash and cash equivalents | 179.7 | 234 | ||
Level 2 [Member] | ||||
Deferred compensation asset | 1.4 | 1.5 | ||
Deferred compensation obligation | $ 1.2 | $ 1.4 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value Disclosures [Abstract] | ||
Long-term debt, fair value | $ 62.3 | $ 36.9 |
Pension and Postretirement He45
Pension and Postretirement Health and Life Benefits (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2016 | |
Pension Plan, Defined Benefit [Member] | |||
Defined Benefit Plan, Contributions by Employer | $ 1.3 | ||
Defined Benefit Plan, Expected Return on Plan Assets | 10.5 | $ 12.2 | |
Pension Plan, Defined Benefit [Member] | Scenario, Forecast [Member] | |||
Defined Benefit Plan, Contributions by Employer | $ 2.9 | ||
Other Postretirement Benefit Plan, Defined Benefit [Member] | |||
Defined Benefit Plan, Expected Return on Plan Assets | $ 0.1 | $ 0.2 | |
Other Postretirement Benefit Plan, Defined Benefit [Member] | Scenario, Forecast [Member] | |||
Defined Benefit Plan, Contributions by Employer | $ 5.4 |
Pension and Postretirement He46
Pension and Postretirement Health and Life Benefits (Schedule of Net Benefit Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Pension Plan, Defined Benefit [Member] | ||
Service costs | $ 0.9 | $ 1 |
Interest costs | 8.9 | 9.3 |
Expected return on plan assets (gains) | (10.5) | (12.2) |
Net periodic benefit cost (credit) | (0.7) | (1.9) |
Postretirement Health and Life Benefits Plans [Member] | ||
Service costs | 0 | 0.1 |
Interest costs | 2.1 | 2.2 |
Expected return on plan assets (gains) | (0.1) | (0.2) |
Amortization of prior service costs (credits), net | (0.1) | (0.1) |
Net periodic benefit cost (credit) | $ 1.9 | $ 2 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 0.9 | |
Weighted-average period in years of costs to be recognized | 2 years 7 months 6 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 300,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |
Employee Stock Option [Member] | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 0.9 | |
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 | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation [Abstract] | ||
Restricted Stock or Unit Expense | $ 0.1 | $ 0.1 |
Stock or Unit Option Plan Expense | 0.1 | 0 |
Allocated Share-based Compensation Expense | $ 0.2 | $ 0.1 |
Stock-Based Compensation Stock-
Stock-Based Compensation Stock-Based Compensation (Assumptions Used in the Black-Scholes Option Pricing Model) (Details) | 3 Months Ended |
Mar. 31, 2015$ / sharesshares | |
Share-based Compensation [Abstract] | |
Share-based Goods and Nonemployee Services Transaction, Valuation Method, Risk Free Interest Rate | 1.91% |
Share-based Goods and Nonemployee Services Transaction, Valuation Method, Expected Volatility Rate | 75.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term, Simplified Method | 6 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 2.89 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares | 300,000 |
Net Income Per Share (Narrative
Net Income Per Share (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Debt Instrument [Line Items] | ||
Interest expense | $ 5 | $ 4.9 |
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 | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Per Share Calculation [Line Items] | ||
Net income (loss) | $ (14.6) | $ (15.4) |
Weighted average common shares | 9.1 | 9 |
Denominator for basic calculation | 9.1 | 9 |
Denominator for diluted calculation | 9.1 | 9 |
Net loss per share - basic and diluted | $ (1.60) | $ (1.71) |
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 | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Options excluded from diluted net income per share | 475,000 | 85,000 |
Exercise price of excluded options | $ 5.62 | |
Minimum [Member] | ||
Exercise price of excluded options | $ 2.71 | |
Maximum [Member] | ||
Exercise price of excluded options | $ 5.62 |
Commitment and Contingencies (D
Commitment and Contingencies (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
CFCAA funding threshold related to liability under ERISA | 90.00% | |
Decontamination and decommissioning obligations | $ 29.4 | $ 29.4 |
D&D financial assurance | $ 29.4 | $ 29.4 |
Segment Information (Segment Re
Segment Information (Segment Reporting Information) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenues [Abstract] | ||
Revenue, Contract Services | $ 16.4 | $ 21 |
Total Revenue | 90 | 167.8 |
Gross Profit | 15.8 | 6.9 |
Low Enriched Uranium Segment [Member] | ||
Revenues [Abstract] | ||
Revenue, Goods | 73.6 | 146.8 |
Gross Profit | 8.1 | 7.2 |
Contract Services Segment [Member] | ||
Revenues [Abstract] | ||
Gross Profit | 7.7 | (0.3) |
Separative Work Units [Member] | ||
Revenues [Abstract] | ||
Revenue, Goods | 59.3 | 103.6 |
Uranium [Member] | ||
Revenues [Abstract] | ||
Revenue, Goods | $ 14.3 | $ 43.2 |