Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 01, 2020 | |
Document and Entity Information | ||
Entity Registrant Name | CENTRUS ENERGY CORP | |
Entity Central Index Key | 0001065059 | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 11,320,689 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 1-14287 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 52-2107911 | |
Entity Address, Address Line One | 6901 Rockledge Drive, Suite 800 | |
Entity Address, City or Town | Bethesda | |
Entity Address, State or Province | MD | |
Entity Address, Postal Zip Code | 20817 | |
City Area Code | 301 | |
Local Phone Number | 564-3200 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Current Assets | ||
Cash and cash equivalents | $ 152.8 | $ 130.7 |
Accounts receivable, net | 14.1 | 21.1 |
Inventories | 66.6 | 64.5 |
Deferred costs associated with deferred revenue | 145.4 | 144.1 |
Other current assets | 7.4 | 9.2 |
Total current assets | 386.3 | 369.6 |
Property, Plant and Equipment, Net | 4.4 | 3.7 |
Deposits for surety bonds | 5.7 | 5.7 |
Intangible assets | 65.2 | 69.5 |
Other long-term assets | 6.6 | 7.4 |
Total Assets | 468.2 | 455.9 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 52.2 | 50.7 |
Payables under SWU purchase agreements | 0 | 8.1 |
Inventories owed to customers and suppliers | 7.8 | 5.6 |
Deferred revenue | 249.7 | 266.3 |
Current debt | 6.1 | 6.1 |
Total current liabilities | 315.8 | 336.8 |
Long-term debt | 108 | 114.1 |
Postretirement health and life benefit obligations | 131.3 | 138.6 |
Pension benefit liabilities | 121.2 | 141.8 |
Advances from customer, noncurrent | 44.9 | 29.4 |
Other long-term liabilities | 22.6 | 32.1 |
Total liabilities | 743.8 | 792.8 |
Commitments and contingencies (Note 11) | ||
Stockholders' Deficit | ||
Excess of capital over par value | 84.8 | 61.5 |
Accumulated deficit | (367) | (405) |
Accumulated other comprehensive income (loss), net of tax | 0.8 | 1.1 |
Total stockholders' deficit | (275.6) | (336.9) |
Total Liabilities and Stockholders’ Equity (Deficit) | 468.2 | 455.9 |
Preferred Series B [Member] | ||
Stockholders' Deficit | ||
Preferred stock | 4.6 | 4.6 |
Common Class A [Member] | ||
Stockholders' Deficit | ||
Common stock | 1.1 | 0.8 |
Common Class B [Member] | ||
Stockholders' Deficit | ||
Common stock | $ 0.1 | $ 0.1 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Preferred Stock, Par Value Per Share | $ 1 | $ 1 |
Preferred Stock, Shares Authorized | 20,000,000 | 20,000,000 |
Accumulated Depreciation, Property, Plant, and Equipment | $ 2,500,000 | $ 2,200,000 |
Preferred Series B [Member] | ||
Preferred Stock, Dividend Rate, Percentage | 7.50% | |
Preferred Stock, Shares Issued | 104,574 | 104,574 |
Preferred Stock, Liquidation Preference, Value | $ 133,100,000 | $ 127,200,000 |
Common Class A [Member] | ||
Common Stock, Par or Stated Value Per Share | $ 0.10 | $ 0.10 |
Common Stock, Shares Authorized | 70,000,000 | 70,000,000 |
Common Stock, Shares, Issued | 11,320,689 | 8,347,427 |
Common Class B [Member] | ||
Common Stock, Par or Stated Value Per Share | $ 0.10 | $ 0.10 |
Common Stock, Shares Authorized | 30,000,000 | 30,000,000 |
Common Stock, Shares, Issued | 719,200 | 1,117,462 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue from Contract with Customer, Excluding Assessed Tax | $ 33.6 | $ 104.7 | $ 154.3 | $ 154 |
Revenue | 33.6 | 104.7 | 154.3 | 154 |
Cost of sales | 34.4 | 69.2 | 91.7 | 128.3 |
Gross profit (loss) | (0.8) | 35.5 | 62.6 | 25.7 |
Advanced technology license and decommissioning costs | 0.2 | 1.3 | 1.8 | 13 |
Selling, general and administrative | 6.7 | 8.7 | 25.6 | 24.5 |
Amortization of intangible assets | 1.2 | 1.8 | 4.3 | 4.1 |
Special charges for workforce reductions and advisory costs | 0.6 | 0.8 | 0.5 | (2.2) |
Gain on Sales of Assets | 0 | (0.2) | 0 | (0.7) |
Operating income (loss) | (9.5) | 23.1 | 30.4 | (13) |
Nonoperating components of net periodic benefit expense (income) | (2.2) | (0.1) | (6.6) | (0.2) |
Interest expense | 0 | 0.9 | 0.1 | 2.9 |
Investment income | (0.1) | (0.5) | (0.5) | (1.9) |
Income (loss) before income taxes | (7.2) | 22.8 | 37.4 | (13.8) |
Provision (benefit) for income taxes | (0.2) | 0 | (0.6) | (0.1) |
Net income (loss) | (7) | 22.8 | 38 | (13.7) |
Preferred stock dividends, undeclared and cumulative | 1.9 | 1.9 | 5.9 | 5.9 |
Net income (loss) allocable to common stockholders | $ (8.9) | $ 20.9 | $ 32.1 | $ (19.6) |
Net income (loss) per common share - basic | $ (0.83) | $ 2.18 | $ 3.21 | $ (2.05) |
Net income (loss) per common share - diluted | $ (0.83) | $ 2.17 | $ 3.12 | $ (2.05) |
Weighted-average number of shares outstanding: | ||||
Average number of shares outstanding, basic | 10,723 | 9,582 | 10,008 | 9,560 |
Average number of shares outstanding, diluted | 10,723 | 9,626 | 10,282 | 9,560 |
Separative Work Units [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 0.1 | $ 75 | $ 89.4 | $ 87.4 |
Uranium [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 18.6 | 12.8 | 23.4 | 38.1 |
Product [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 18.7 | 87.8 | 112.8 | 125.5 |
Cost of sales | 19.6 | 54.4 | 51.8 | 100.4 |
Service [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 14.9 | 16.9 | 41.5 | 28.5 |
Cost of sales | $ 14.8 | $ 14.8 | $ 39.9 | $ 27.9 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash Flows from Operating Activities | ||
Net income (loss) | $ 38 | $ (13.7) |
Adjustments to reconcile net income (loss) to net cash (used in) operating activities: | ||
Depreciation and amortization | 4.7 | 4.5 |
Interest on paid-in-kind toggle notes | 0 | 1.1 |
Gain on sale of assets | 0 | (0.7) |
Inventory valuation adjustments | 0 | 2.3 |
Changes in operating assets and liabilities: | ||
Accounts receivable – (increase) decrease | 7 | 31.3 |
Inventories, net – (increase) decrease | 17.1 | (9.3) |
Accounts payable and other liabilities – increase (decrease) | (0.3) | (11.2) |
Payables under SWU purchase agreements – increase (decrease) | (8.1) | (33) |
Deferred revenue, net of deferred costs – increase (decrease) | (17.5) | 18.9 |
Accrued loss on long-term contract, increase (decrease) | (8.7) | |
Pension and postretirement liabilities - increase (decrease) | (28.1) | (15.9) |
Other, net | 1.1 | (0.8) |
Net Cash (Used in) Operating Activities | 5.2 | (26.5) |
Cash Flows Provided by Investing Activities | ||
Capital expenditures | (0.9) | 0 |
Proceeds from sales of assets | 0 | 0.7 |
Net Cash Provided by (Used in) Investing Activities | (0.9) | 0.7 |
Cash Flows Used in Financing Activities | ||
Proceeds from the sale of common stock, net | 23.8 | |
Payment of interest classified as debt | (6.1) | (6.1) |
Exercise of stock options | 0.2 | 0 |
Principal payments on debt | (27.5) | |
Payments for deferred financing costs | (0.1) | (0.2) |
Net Cash (Used in) Financing Activities | 17.8 | (33.8) |
Decrease in cash, cash equivalents and restricted cash | 22.1 | (59.6) |
Cash, cash equivalents and restricted cash, start of period | 136.6 | 159.7 |
Cash, cash equivalents and restricted cash, end of period | 158.7 | |
Supplemental Cash Flow Information: | ||
Interest paid | 0 | 1.5 |
Conversion of interest payable-in-kind to long-term debt | 0 | 0.7 |
Termination benefit costs | 0.6 | |
Deferred financing costs included in accounts payable and accrued liabilities [Member] | ||
Supplemental Cash Flow Information: | ||
Other Significant Noncash Transaction, Value of Consideration Given | (0.7) | (0.4) |
Right to use lease assets acquired under operating lease [Member] | ||
Supplemental Cash Flow Information: | ||
Other Significant Noncash Transaction, Value of Consideration Received | 0 | 2.9 |
Disposal of right to use lease assets for early termination [Member] | ||
Supplemental Cash Flow Information: | ||
Other Significant Noncash Transaction, Value of Consideration Given | 0 | (0.2) |
Property, plant and equipment included in accounts payable and accrued liabilities [Member] | ||
Supplemental Cash Flow Information: | ||
Other Significant Noncash Transaction, Value of Consideration Given | $ (0.1) | $ 0 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT - USD ($) $ in Millions | Total | Preferred Stock [Member] | Preferred Stock [Member]Preferred Series B [Member] | Common Stock [Member]Common Class A [Member] | Common Stock [Member]Common Class B [Member] | Excess of Capital over Par Value [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Beginning Balance at Dec. 31, 2018 | $ (321.9) | $ 4.6 | $ 0.8 | $ 0.1 | $ 61.2 | $ (388.5) | $ (0.1) | |
Net income (loss) | (20.9) | (20.9) | ||||||
Restricted and other common stock issued, net of amortization | (0.1) | (0.1) | ||||||
Ending Balance at Mar. 31, 2019 | (342.7) | $ 4.6 | 0.8 | 0.1 | 61.3 | (409.4) | (0.1) | |
Beginning Balance at Dec. 31, 2018 | (321.9) | 4.6 | 0.8 | 0.1 | 61.2 | (388.5) | (0.1) | |
Net income (loss) | (13.7) | |||||||
Ending Balance at Sep. 30, 2019 | (335.4) | 4.6 | 0.8 | 0.1 | 61.4 | (402.2) | (0.1) | |
Beginning Balance at Mar. 31, 2019 | (342.7) | 4.6 | 0.8 | 0.1 | 61.3 | (409.4) | (0.1) | |
Net income (loss) | (15.6) | (15.6) | ||||||
Ending Balance at Jun. 30, 2019 | (358.3) | 4.6 | 0.8 | 0.1 | 61.3 | (425) | (0.1) | |
Net income (loss) | 22.8 | 22.8 | ||||||
Restricted and other common stock issued, net of amortization | (0.1) | (0.1) | ||||||
Ending Balance at Sep. 30, 2019 | (335.4) | $ 4.6 | 0.8 | 0.1 | 61.4 | (402.2) | (0.1) | |
Beginning Balance at Dec. 31, 2019 | (336.9) | 4.6 | 0.8 | 0.1 | 61.5 | (405) | 1.1 | |
Net income (loss) | 11.3 | 11.3 | ||||||
Restricted and other common stock issued, net of amortization | (0.2) | (0.3) | (0.1) | |||||
Ending Balance at Mar. 31, 2020 | (325.4) | 4.6 | 0.8 | 0.1 | 61.8 | (393.7) | 1 | |
Beginning Balance at Dec. 31, 2019 | (336.9) | 4.6 | 0.8 | 0.1 | 61.5 | (405) | 1.1 | |
Net income (loss) | 38 | |||||||
Ending Balance at Sep. 30, 2020 | (275.6) | 4.6 | 1.1 | 0.1 | 84.8 | (367) | 0.8 | |
Beginning Balance at Mar. 31, 2020 | (325.4) | 4.6 | 0.8 | 0.1 | 61.8 | (393.7) | 1 | |
Net income (loss) | 33.7 | 33.7 | ||||||
Restricted and other common stock issued, net of amortization | 0 | (0.1) | (0.1) | |||||
Ending Balance at Jun. 30, 2020 | (291.7) | 4.6 | 0.8 | 0.1 | 61.9 | (360) | 0.9 | |
Net income (loss) | (7) | (7) | ||||||
Stock issued during period | 23.1 | 0.3 | 22.8 | |||||
Restricted and other common stock issued, net of amortization | (0.1) | (0.1) | ||||||
Ending Balance at Sep. 30, 2020 | $ (275.6) | $ 4.6 | $ 1.1 | $ 0.1 | $ 84.8 | $ (367) | $ 0.8 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION Basis of Presentation and Principles of Consolidation 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, and its other subsidiaries, as of September 30, 2020, and for the three and nine months ended September 30, 2020 and 2019, have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The condensed consolidated balance sheet as of December 31, 2019, was derived from audited consolidated financial statements, but does not include all disclosures required by generally accepted accounting principles in the United States (“GAAP”). In the opinion of management, the unaudited condensed consolidated financial statements reflect all adjustments, including normal recurring adjustments, necessary for a fair statement of the financial results for the interim period. Certain prior year amounts have been reclassified for consistency with the current year presentation. Certain information and notes normally included in financial statements prepared in accordance with GAAP have been omitted pursuant to such rules and regulations. All material intercompany transactions have been eliminated. The Company’s components of comprehensive income for the three and nine months ended September 30, 2020 and 2019 are insignificant. Operating results for the three and nine months ended September 30, 2020, are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. 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 year ended December 31, 2019. New Accounting Standards Recently Adopted Accounting Standards In June 2016, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Measurement of Credit Losses on Financial Instruments , which requires estimating all expected credit losses for certain types of financial instruments, including trade receivables, held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company adopted this standard in the first quarter of fiscal 2020 and there was no material impact. Accounting Standards Effective in Future Periods In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20), which modifies the disclosure requirements for employers that sponsor defined benefit pension plans and other postretirement plans. ASU 2018-14 is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The standard is to be applied on a retrospective basis to all periods presented and early adoption is permitted. The Company is evaluating the effect that the provisions of ASU 2018-14 will have on its consolidated financial statements. Significant Accounting Policies |
Revenue and Contracts with Cust
Revenue and Contracts with Customers | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | REVENUE AND CONTRACTS WITH CUSTOMERS Disaggregation of Revenue The following table presents revenue from separative work units (“SWU”) and uranium sales disaggregated by geographical region based on the billing addresses of customers (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 United States $ 18.7 $ 53.7 $ 66.7 $ 91.4 Foreign — 34.1 46.1 34.1 Revenue - SWU and uranium $ 18.7 $ 87.8 $ 112.8 $ 125.5 Refer to Note 14, Segment Information, for disaggregation of revenue by segment. Disaggregation by end-market is provided in Note 14 and the condensed consolidated statements of operations. SWU sales are made primarily to electric utility customers and uranium sales are primarily made to other nuclear fuel related companies. Technical solutions revenue resulted primarily from services provided to the government and its contractors. SWU and uranium revenue is recognized at point of sale and technical solutions revenue is generally recognized over time. SWU revenue in the nine months ended September 30, 2020 includes $32.4 million collected from a customer in in the second quarter in settlement of a supply contract rejected in bankruptcy court. Refer to Note 13, Commitments and Contingencies - Legal Matters, for details. Accounts Receivable September 30, December 31, ($ millions) Accounts receivable: Billed $ 6.0 $ 13.2 Unbilled * 8.1 7.9 Accounts receivable $ 14.1 $ 21.1 * Billings under certain contracts in the technical services segment are invoiced based on approved provisional billing rates. Unbilled revenue represents the difference between actual costs incurred and invoiced amounts. The Company expects to invoice and collect the unbilled amounts after actual rates are submitted to the customer and approved. Unbilled revenue also includes unconditional rights to revenue that are not yet billable under applicable contracts pending the compilation of supporting documentation. Contract Liabilities The following table presents changes in contract liability balances (in millions): September 30, December 31, 2019 Year-To-Date Change Accrued loss on HALEU Contract: Current - Accounts payable and accrued liabilities $ 8.9 $ 10.0 $ (1.1) Noncurrent - Other long-term liabilities $ 0.7 $ 8.3 $ (7.6) Deferred revenue - current $ 248.2 $ 243.0 $ 5.2 Advances from customers - current $ 1.5 $ 23.3 $ (21.8) Advances from customers - noncurrent $ 44.9 $ 29.4 $ 15.5 Deferred revenue activity in the nine months ended September 30, 2020, follows (in millions): Deferred Sales in the Period Previously Deferred Sales Recognized in the Period Year-To-Date Change Deferred revenue - current 5.2 — 5.2 LEU Segment The SWU component of LEU is typically bought and sold under contracts with deliveries over several years. The Company’s agreements for natural uranium sales are generally shorter-term, fixed-commitment contracts. The Company’s order book of sales under contract in the low-enriched uranium (“LEU”) segment (“order book”) extends to 2030. As of September 30, 2020, and December 31, 2019, the order book was $1.0 billion. The order book represents the estimated aggregate dollar amount of revenue for future SWU and uranium deliveries under contract and includes $0.3 billion of Deferred Revenue and Advances from Customers. Refer to Contract Liabilities table above. Most of the Company’s enrichment contracts provide for fixed purchases of SWU during a given year. T he Company’s order book is partially based on customers’ estimates of the timing and size of their fuel requirements and other assumptions that are subject to change. For example, depending on the terms of specific contracts, the customer may be able to increase or decrease the quantity delivered within an agreed range. T he Company’s order book estimate is also based on the Company’s estimates of selling prices, which may be subject to change. For example, depending on the terms of specific contracts, prices may be adjusted based on escalation using a general inflation index, published SWU price indicators prevailing at the time of delivery, and other factors, all of which are variable. T he Company uses external composite forecasts of future market prices and inflation rates in its pricing estimates. Under the terms of certain contracts with customers in the LEU segment, the Company will accept payment for SWU in the form of uranium. Revenue from the sale of SWU under such contracts is recognized at the time LEU is delivered and is based on the fair value of the uranium at contract inception, or as the quantity of uranium is finalized, if variable. In the first quarter of 2020, SWU revenue of $23.4 million was recognized under such contracts based on the fair market value of uranium acquired in exchange for SWU delivered. Uranium received from customers as advance payments for the future sales of SWU totaled $44.4 million as of September 30, 2020, including uranium valued at $15.0 million received in the second quarter of 2020. The advance payments are included in Advances from Customers, Noncurrent, based on the anticipated SWU sales period. In the first quarter of 2020, the Company borrowed SWU inventory valued at $1.7 million from a customer and recorded the SWU and the related liability using an average purchase price over the borrowing period. The cumulative liability to the customer of $10.8 million for borrowed inventory is included in Other Liabilities, which is included in noncurrent liabilities. Technical Solutions Segment Revenue for the technical solutions segment, representing the Company’s technical, manufacturing, engineering, procurement, construction and operations services offered to public and private sector customers, is recognized over the contractual period as services are rendered. On October 31, 2019, the Company signed a cost-share contract with the U.S. Department of Energy (“DOE”) to deploy a cascade of centrifuges to demonstrate production of high-assay, low-enriched uranium (“HALEU”) for advanced reactors (“the HALEU Contract”). HALEU is a component of an advanced nuclear reactor fuel that is not commercially produced today and may be required for a number of advanced reactor and fuel designs currently under development in both the commercial and government sectors. The three-year program has been under way since May 31, 2019, when the Company and DOE signed a preliminary letter agreement that allowed work to begin while the full contract was being finalized. Under the HALEU Contract, DOE agreed to reimburse the Company for 80% of its costs incurred in performing the contract, up to a maximum of $115 million. The Company’s cost share is the corresponding 20% and any costs incurred above these amounts. Costs under the HALEU Contract include program costs , including direct labor and materials and associated indirect costs that are classified as Cost of Sales , and an allocation of corporate costs supporting the program that are classified as Selling, General and Administrative Expenses . Services to be provided over the three-year contract include constructing and assembling centrifuge machines and related infrastructure in a cascade formation and production of a small quantity of HALEU. When estimates of remaining program costs to be incurred for such an integrated, construction-type contract exceed estimates of total revenue to be earned, a provision for the remaining loss on the contract is recorded to Cost of Sales in the period the loss is determined. The Company’s corporate costs supporting the program are recognized as expense as incurred over the duration of the contract term. As of December 31, 2019, the portion of the Company’s anticipated cost share under the HALEU Contract representing the Company’s share of remaining projected program costs was recognized in Cost of Sales as an accrued loss of $18.3 million. The accrued loss on the contract is being adjusted over the remaining contract term based on actual results and remaining program cost projections. As of September 30, 2020, the accrued contract loss balance was $9.6 million, consisting of $8.9 million included in Accounts Payable and Accrued Liabilities and $0.7 million included in Other Long-Term Liabilities . Cost of sales in the three and nine months ended September 30, 2020 benefited by $3.4 million and $8.7 million, respectively, for previously accrued contract losses attributable to work performed in the nine months ended September 30, 2020. The HALEU Contract is incrementally funded and DOE is currently obligated for costs up to approximately $74.5 million of the $115 million. The Company has received aggregate cash payments of $41.5 million through September 30, 2020. Centrus and DOE have yet to fully settle the Company’s claims for reimbursements for certain pension and postretirement benefits costs related to past contract work performed for DOE unrelated to the HALEU Contract. There is the potential for additional income to be recognized for this work pending the outcome of legal proceedings related to the Company’s claims for payment and the potential release of previously established valuation allowances on receivables. As a result of the application of fresh start accounting following the Company’s emergence from Chapter 11 bankruptcy on September 30, 2014, the receivables related to the Company’s claims for payment are carried at fair value as of September 30, 2014, which is net of the valuation allowances. Refer to Note 13, Commitments and Contingencies -- Legal Matters . |
Special Charges
Special Charges | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Special Charges | SPECIAL CHARGES (CREDITS) Special charges for workforce reductions totaled $0.5 million in the nine months ended September 30, 2020, including $0.6 million in the third quarter for estimated employee termination benefits and income of $0.1 million in the first quarter for the reversal of accrued termination benefits related to unvested employee departures. Special charges (credits) in the nine months ended September 30, 2019 included income of $2.9 million for the reversal of accrued termination benefits for employees who were retained for the HALEU program. A summary of termination benefit activity an d the accrued liability follows (in millions): Liability Nine Months Ended September 30, Liability Charges (Credits) for Termination Benefits Paid Workforce reductions: Corporate functions $ 1.2 $ 0.5 $ (1.0) $ 0.7 Piketon facility 0.2 — (0.2) — Total $ 1.4 $ 0.5 $ (1.2) $ 0.7 |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash | 9 Months Ended |
Sep. 30, 2020 | |
Cash, Cash Equivalents and Restricted Cash [Abstract] | |
Cash and Cash Equivalents Disclosure | CASH, CASH EQUIVALENTS AND RESTRICTED CASH The following table summarizes the Company’s cash, cash equivalents and restricted cash as presented on the condensed consolidated balance sheet to amounts on the condensed consolidated statement of cash flows (in millions): September 30, December 31, 2019 Cash and cash equivalents $ 152.8 $ 130.7 Deposits for financial assurance - current 0.2 0.2 Deposits for financial assurance - noncurrent 5.7 5.7 Total cash, cash equivalents and restricted cash $ 158.7 $ 136.6 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2020 | |
Inventory, Net [Abstract] | |
Inventories | INVENTORIES Centrus holds uranium at licensed locations in the form of natural uranium and as the uranium component of LEU. Centrus also holds 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 are as follows (in millions): September 30, 2020 December 31, 2019 Current Current Inventories, Net Current Current Inventories, Net Separative work units $ 10.1 $ 3.1 $ 7.0 $ 7.8 $ — $ 7.8 Uranium 56.5 4.7 51.8 56.7 5.6 51.1 Total $ 66.6 $ 7.8 $ 58.8 $ 64.5 $ 5.6 $ 58.9 |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2020 | |
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 the date the Company emerged from bankruptcy, September 30, 2014, and reflect the conditions at that time. The intangible asset related to the sales order book is amortized as the order book existing 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 consolidated statements of operations. Intangible asset balances are as follows (in millions): September 30, 2020 December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Amount Gross Carrying Amount Accumulated Amortization Net Amount Sales order book $ 54.6 $ 30.7 $ 23.9 $ 54.6 $ 29.9 $ 24.7 Customer relationships 68.9 27.6 41.3 68.9 24.1 44.8 Total $ 123.5 $ 58.3 $ 65.2 $ 123.5 $ 54.0 $ 69.5 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | DEBT A summary of debt is as follows (in millions): September 30, 2020 December 31, 2019 Maturity Current Long-Term Current Long-Term 8.25% Notes: Feb. 2027 Principal $ — $ 74.3 $ — $ 74.3 Interest 6.1 33.7 6.1 39.8 Total $ 6.1 $ 108.0 $ 6.1 $ 114.1 Interest on the 8.25% Notes (the “8.25% Notes”) is payable semi-annually in arrears as of February 28 and August 31 based on a 360-day year consisting of twelve 30-day months. The 8.25% Notes mature on February 28, 2027. As shown in the table above, all future interest payment obligations on the 8.25% Notes are included in the carrying value of the 8.25% Notes. As a result, the Company’s reported interest expense will be less than its contractual interest payments throughout the term of the 8.25% Notes. As of September 30, 2020, and December 31, 2019, $6.1 million of interest is recorded as current and classified as Current Debt in the condensed consolidated balance sheet. Additional terms and conditions of the 8.25% Notes are described in Note 9, Debt , of the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE Fair value is 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 of assets and liabilities, the following hierarchy is used in selecting inputs, with the highest priority given to Level 1, as these are the most transparent or reliable: • Level 1 – quoted prices for identical instruments in active markets. • Level 2 – quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets. • Level 3 – valuations derived using one or more significant inputs that are not observable. Financial Instruments Recorded at Fair Value (in millions): September 30, 2020 December 31, 2019 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 152.8 $ — $ — $ 152.8 $ 130.7 $ — $ — $ 130.7 Deferred compensation asset (a) 2.2 — — 2.2 1.8 — — 1.8 Liabilities: Deferred compensation obligation (a) $ 2.1 $ — $ — $ 2.1 $ 1.8 $ — $ — $ 1.8 (a) The deferred compensation obligation represents the balance of deferred compensation plus net investment earnings. The deferred compensation plan is funded through a rabbi trust. Trust funds are invested in mutual funds for which unit prices are quoted in active markets and are classified within Level 1 of the valuation hierarchy. There were no transfers between Level 1, 2 or 3 during the periods presented. Other Financial Instruments As of September 30, 2020, and December 31, 2019, 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 their short-term nature. The carrying value and estimated fair value of long-term debt are as follows (in millions): September 30, 2020 December 31, 2019 Carrying Value Estimated Fair Value (a) Carrying Value Estimated Fair Value (a) 8.25% Notes $ 114.1 (b) $ 50.0 $ 120.2 (b) $ 61.5 (a) Based on recent trading prices and bid/ask quotes as of or near the balance sheet date, which are considered Level 2 inputs based on the frequency of trading. (b) The carrying value of the 8.25% Notes consists of the principal balance of $74.3 million and the sum of current and noncurrent interest payment obligations until maturity. Refer to Note 7, Debt |
Pension and Postretirement Heal
Pension and Postretirement Health and Life Benefits | 9 Months Ended |
Sep. 30, 2020 | |
Retirement Benefits, Description [Abstract] | |
Pension and Postretirement Health and Life Benefits | PENSION AND POSTRETIREMENT HEALTH AND LIFE BENEFITS The components of net periodic benefit (credits) for the defined benefit pension plans were as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Service costs $ 0.9 $ 0.8 $ 2.7 $ 2.4 Interest costs 6.0 7.5 18.2 22.7 Amortization of prior service costs (credits), net — — (0.2) — Expected return on plan assets (gains) (9.3) (9.1) (28.1) (27.3) Net periodic benefit (credits) $ (2.4) $ (0.8) $ (7.4) $ (2.2) The components of net periodic benefit costs for the postretirement health and life benefit plans were as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Interest costs $ 1.2 $ 1.5 $ 3.6 $ 4.5 Amortization of prior service costs (credits), net (0.1) — (0.1) (0.1) Net periodic benefit costs $ 1.1 $ 1.5 $ 3.5 $ 4.4 The Company reports service costs for its defined benefit pension plans and its postretirement health and life benefit plans in Cost of Sales and Selling, General and Administrative Expenses . The remaining components of net periodic benefit (credits) costs are reported as Nonoperating Components of Net Periodic Benefit Expense (Income). |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME 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. A valuation allowance is provided if it is more likely than not that all, or some portion, of the deferred tax assets may not be realized. Centrus returned to profitability for the nine months ended September 30, 2020 primarily due to increased margins in the LEU segment. Centrus has determined that the LEU segment’s continuing increased margins and strong backlog of orders support the assertion that it is more likely than not that all its state net deferred tax assets will be realized. Therefore, in the second quarter of 2020, the associated valuation allowance was released resulting in an income tax benefit of $0.8 million being recorded as a discrete item. Centrus continues to maintain its assertion that it is more likely than not that its federal net deferred tax assets will not be realized because of a three-year cumulative pretax loss position as of September 30, 2020 and a significant federal net operating loss carryforward. As a result, Centrus continues to maintain a full valuation allowance on its federal net deferred tax assets. |
Net Income Per Share
Net Income Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | NET INCOME (LOSS) PER COMMON SHARE Basic net income (loss) per common share is calculated by dividing income (loss) allocable to common stockholders by the weighted average number of shares of common stock outstanding during the period. In calculating diluted net income (loss) per common share, the number of shares is increased by the weighted average number of potential shares related to stock compensation awards. No dilutive effect is recognized in a period in which a net loss has occurred. The weighted average number of common and common equivalent shares used in the calculation of basic and diluted income (loss) per common share are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Numerator (in millions): Net income (loss) $ (7.0) $ 22.8 $ 38.0 $ (13.7) Preferred stock dividends - undeclared and cumulative 1.9 1.9 5.9 5.9 Net income (loss) allocable to common stockholders $ (8.9) $ 20.9 $ 32.1 $ (19.6) Denominator (in thousands): Average common shares outstanding - basic 10,723 9,582 10,008 9,560 Potentially dilutive shares related to stock options and restricted stock units (a) — 44 274 — Average common shares outstanding - diluted 10,723 9,626 10,282 9,560 Net income (loss) per common share (in dollars): Basic $ (0.83) $ 2.18 $ 3.21 $ (2.05) Diluted $ (0.83) $ 2.17 $ 3.12 $ (2.05) (a) Common stock equivalents excluded from the diluted calculation as a result of a net loss in the period (in thousands) 317 — — 67 Options outstanding and considered anti-dilutive as their exercise price exceeded the average share market price (in thousands) — 460 — 460 |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2020 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | STOCKHOLDERS’ EQUITY On August 21, 2020, the Company entered into an underwriting agreement relating to the offer and sale (the “Offering”) of 2,350,000 shares of the Company’s Class A common stock, par value $0.10 per share (the “Common Stock”). Under the terms of the Underwriting Agreement, the Company granted the Underwriters an option, exercisable for 30 days, to purchase additional shares. The Offering was made pursuant to the Registration Statement on Form S-3 which became effective on August 5, 2020, as supplemented by the prospectus supplement filed with the SEC on August 21, 2020. The price to the public in this Offering was $10.00 per share of Common Stock. The Offering closed on August 25, 2020. On September 1, 2020, the Underwriters exercised their option to purchase 187,500 additional shares of Common Stock in the Offering at the public offering price, less the underwriting discount. After giving effect to the closing of the 187,500 additional shares, the total number of shares sold by the Company in the Offering increased to 2,537,500 shares of Common Stock. The aggregate gross proceeds from the Offering are approximately $25.4 million, before deducting underwriting discounts and commissions and other estimated offering expenses payable by the Company of $2.3 million. The Company currently intends to use the net proceeds from this Offering for general working capital purposes, to invest in technology development and to repay outstanding debt or retire shares of its Series B Senior Preferred Stock. Refer to Note 15, Subsequent Event , regarding the Company’s announcement on October 19, 2020, of the commencement of a tender offer to purchase up to $60 million of issued and outstanding Series B Senior Preferred Stock. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Commitments under SWU Purchase Agreements TENEX A major supplier of SWU to the Company is the Russian government entity TENEX, Joint-Stock Company (“TENEX”). Under a 2011 agreement with TENEX, as amended, (the “Russian Supply Agreement”), the Company purchases SWU contained in LEU received from TENEX, and the Company delivers natural uranium to TENEX for the LEU’s uranium component. The LEU that the Company obtains from TENEX under the agreement is subject to quotas and other restrictions applicable to commercial Russian LEU. The Russian Supply Agreement was originally signed with commitments through 2022 but was modified in 2015 to give the Company the right to reschedule certain quantities of SWU of the original commitments into the period 2023 and beyond, in return for the purchase of additional SWU in those years. The Company has exercised this right to reschedule in each year through December 31, 2019. If the Company exercises this right to reschedule in full during the remaining years of the contract’s original term, the Company will have a rescheduled post-2022 purchase commitment through 2028. The Russian Supply Agreement 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. In such a case, the Company would pay for the SWU but have to take the unordered SWU in the following year. Pricing terms for SWU under the Russian Supply Agreement are based on a combination of market-related price points and other factors. This formula was subject to an adjustment at the end of 2018 that reduced the unit costs of SWU under this contract in 2019 and for the duration of the contract. Orano On April 27, 2018, the Company entered into an agreement (the “Orano Supply Agreement”) with the French company Orano Cycle (“Orano”) for the long-term supply to the Company of SWU contained in LEU. Under the Orano Supply Agreement, as amended, the supply of SWU commences in 2020 and extends to 2028. The Company has the option to extend the supply period for an additional two years. The Orano Supply Agreement provides significant flexibility to adjust purchase volumes, subject to annual minimums and maximums in fixed amounts that vary year by year. Under the Orano Supply Agreement, the Company purchases SWU contained in LEU received from Orano, and the Company delivers natural uranium to Orano for the natural uranium feed material component of LEU. The pricing for the SWU purchased by the Company is determined by a formula that uses a combination of market-related price points and other factors and is subject to certain floors and ceilings. Milestones Under the 2002 DOE-USEC Agreement The Company’s predecessor USEC Inc. 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. In connection with the plan of reorganization in USEC Inc.’s 2014 Chapter 11 bankruptcy (now completed) and its emergence as the Company, 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 the Company under those agreements. The 2002 DOE-USEC Agreement requires Centrus to develop, demonstrate and deploy advanced enrichment technology in accordance with milestones, including the deployment of a commercial American Centrifuge Plant, and provides for remedies in the event of a failure to meet a milestone under certain circumstances, including terminating the 2002 DOE-USEC Agreement, revoking Centrus’ access to DOE’s centrifuge technology that is required for the success of the Company’s ongoing work with the American Centrifuge technology, 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 technology. 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 the American Centrifuge Plant milestone under the 2002 DOE-USEC Agreement, DOE and the Company will jointly meet to discuss in good faith possible adjustments to the milestones as appropriate to accommodate the delaying event. The assumption of the 2002 DOE-USEC Agreement in 2014 did not affect 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 the Company have agreed that all rights, remedies and defenses of the parties with respect to any missed milestones and all other matters under the 2002 DOE-USEC Agreement continue to be preserved, and that the time limits for each party to respond to any missed milestones continue to be tolled. Legal Matters From time to time, the Company is involved in various pending legal proceedings, including the pending legal proceedings described below. On August 30, 2013, the Company submitted a claim to DOE under the Contract Disputes Act for payment of $42.8 million, representing DOE’s share of pension and postretirement benefits costs related to the transition of employees at the former Portsmouth, Ohio, Gaseous Diffusion Plant (the “Portsmouth GDP”) to DOE’s decontamination and decommissioning contractor. On August 27, 2014, the DOE contracting officer denied the Company’s claim. As a result, the Company filed an appeal of the decision in the U.S. Court of Federal Claims in January 2015. Centrus believes that DOE is responsible for a significant portion of any pension and postretirement benefit costs associated with the transition of employees at Portsmouth. The receivable for DOE’s share of pension and postretirement benefits costs has a full valuation allowance due to the lack of a resolution with DOE and uncertainty regarding the amounts owed and the timing of collection. While proceeding with litigation, the Company is still pursuing settlement. On May 26, 2019, the Company, Enrichment Corp., and six other DOE contractors who have operated facilities at the Portsmouth GDP site (including, in the case of the Company, the American Centrifuge Plant site located on the premises) were named as defendants in a class action complaint filed by Ursula McGlone, Jason McGlone, Julia Dunham, and K.D. and C.D., minor children by and through their parent and natural guardian Julia Dunham (collectively, the “McGlone Plaintiffs”) in the U.S. District Court in the Southern District of Ohio, Eastern Division. The complaint seeks damages for alleged off-site contamination allegedly resulting from activities on the Portsmouth GDP site. The McGlone Plaintiffs are seeking to represent a class of (i) all current or former residents within a seven-mile radius of the Portsmouth GDP site and (ii) all students and their parents at the Zahn’s Corner Middle School from 1993-present. The complaint was amended on December 10, 2019 and on January 10, 2020, to add additional plaintiffs and new claims. On July 31, 2020, the court granted in part and denied in part the defendants’ motion to dismiss the case. The court dismissed ten of the fifteen claims and allowed the remaining claims to proceed to the next stage of the litigation process. On August 18, 2020, the McGlone Plaintiffs filed a motion for leave to file a third amended complaint and notice of dismissal of three of the individual plaintiffs. On September 29, 2020, the defendants filed their response in opposition to the plaintiff’s motion for leave to file a third amended complaint . The Company believes that its operations at the Portsmouth GDP site were fully in compliance with the Nuclear Regulatory Commission’s regulations. Further, the Company believes that any such liability should be covered by indemnification under the Price-Anderson Nuclear Industries Indemnity Act (“Price-Anderson Act”). The Company and Enrichment Corp. have provided notifications to DOE required to invoke indemnification under the Price-Anderson Act and other contractual provisions. On June 28, 2019, the Company, Enrichment Corp., and four other DOE contractors who have operated facilities at the Portsmouth GDP site were named as defendants in a class action complaint filed by Ray Pritchard and Sharon Melick (collectively, the “Pritchard Plaintiffs”) in the U.S. District Court in the Southern District of Ohio, Eastern Division. The complaint sought damages for alleged off-site contamination allegedly resulting from activities on the Portsmouth GDP site. The Pritchard Plaintiffs sought to represent a class of all current or former residents within a seven-mile radius of the Portsmouth GDP site. On September 11, 2020, the Pritchard Plaintiffs voluntarily dismissed the compliant. On November 27, 2019, the Company, Enrichment Corp. and six other DOE contractors who have operated facilities at the Portsmouth GDP site were named as defendants in a class action complaint filed by James Matthews, Jennifer Brownfield Clark, Joanne Ross, the Estate of A.R., and others similarly situated (the “Matthews Plaintiffs”), in the Common Pleas Court of Pike County, Ohio. On January 3, 2020, the complaint was removed to the U.S. District Court in the Southern District of Ohio for adjudication. The complaint sought injunctive relief, compensatory damages, statutory damages, and any other relief allowed by law for alleged off-site contamination allegedly resulting from activities on the Portsmouth GDP site. The Matthews Plaintiffs expressly contended that the ongoing and continuous releases that injured the Plaintiffs and Class Members were not “nuclear incidents” as that term is defined in the Price-Anderson Act, but rather “freestanding state law claims concerning traditional-style state regulation.” On July 27, 2020, the court granted the Company, Enrichment Corp. and the other defendants’ motion to dismiss the complaint because the Matthews Plaintiffs had opted not to proceed under the Price-Anderson Act which preempts state law. On August 18, 2020, the plaintiffs filed a notice of appeal to the U.S. Court of Appeals for the Sixth Circuit. The Company and Enrichment Corp. had provided notifications to DOE required to invoke indemnification under the Price-Anderson Act and other contractual provisions. On May 15, 2020, the Company, Enrichment Corp. and six other DOE contractors who have operated facilities at the Portsmouth GDP site were named as defendant in a class action complaint filed by Ursula McGlone, Jason McGlone, L.M., G.M., B.M., E.M., and M.M., minor children by and through their parent and natural guardian, Ursula McGlone, Julia Dunham, K.D. and C.D., minor children by and through their parent and natural guardian, Julia Dunham, Adam Rider, Brittani Rider, M.R., C.R., L.R. and L.R., minor children by and through their parent and natural guardian, Brittani Rider, Ohio residents, on behalf of themselves individually and all others similarly situated (“Citizen’s Suit”) in the U.S. District Court in the Southern District of Ohio, Eastern Division. The complaint sought the imposition of civil penalties, requiring full abatement of endangerment, property remediation and injunctive relief for alleged off-site contamination allegedly resulting from activities on the Portsmouth GDP site. On July 27, 2020, the plaintiffs voluntarily filed a notice of dismissal without prejudice with the court. The Company and Enrichment Corp. had provided notifications to DOE required to invoke indemnification under the Price-Anderson Act and other contractual provisions. On June 30, 2020, the Company, Enrichment Corp., six other DOE Contractors, U.S. Department of Energy and other government agencies were given notice of Ursula McGlone, Jason McGlone and Julia Dunham’s intent to file a citizen’s suit under the Clean Air Act, the Clean Water Act, the Resource Conservation and Recovery Act and the Comprehensive Environmental Response, Compensation and Liability Act against the Company, Enrichment Corp. and six other DOE Contractors. The complainants will purportedly seek civil penalties and injunctive relief for alleged off-site contamination allegedly resulting from activities on the Portsmouth GDP site. As of this filing, neither the Company nor Enrichment Corp. have been served with the forthcoming complaint. On September 3, 2020, the Company, Enrichment Corp., nine other DOE contractors who have operated facilities at the Portsmouth GDP site and eleven individuals in their personal capacity some of whom are current and former U.S Department of Energy employees were named as defendants in a class action complaint filed by Jeffrey Walburn, Charles O. Lawson Jr., Kimberly M. Lawson, James A. Brogdon, Stephen Patrick Spriggs, Donald Slone, Vicki P. Slone, Victoria Slone Moore, Toni West, Carl R. Hartley, Heather R. Hartley, Vina Colley, Antony Preston, David B. Rose, Michael E. Groves, George W. Clark, Estate of Kathy Sue Brogdon (deceased), Estate of Jay Paul Brogdon (deceased), and Jon Doe(s), and Jane Doe(s), on behalf of themselves and all similarly situated individuals in the U.S. District Court in the Southern District of Ohio, Eastern Division. The complaint alleges that the named defendants conspired and concealed nuclear incidents in violation of the Price-Anderson Act, the Racketeer Influenced and Corrupt Organization Act and other state claims. The complainants seek damages and equitable and injunctive relief arising from economic losses, property losses, and non-economic damages resulting from toxic and radioactive releases from the DOE Portsmouth, Ohio site. As of this filing, neither the Company nor Enrichment Corp. have been served with the complaint. The Company and Enrichment Corp. have provided notifications to DOE required to invoke indemnification under the Price-Anderson Act and other contractual provisions. 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, other than the above, Centrus does not believe that the outcome of any of these legal matters, individually and in the aggregate, will have a material adverse effect on its cash flows, results of operations or consolidated financial condition. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | |
Segment Information | SEGMENT INFORMATION Gross profit is the Company’s measure for segment reporting. There were no intersegment sales in the periods presented. Refer to Note 2, Revenue and Contracts with Customers, for additional details on revenue for each segment. The following table presents the Company’s segment information (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Revenue LEU segment: Separative work units $ 0.1 $ 75.0 $ 89.4 $ 87.4 Uranium 18.6 12.8 23.4 38.1 Total 18.7 87.8 112.8 125.5 Technical solutions segment 14.9 16.9 41.5 28.5 Total revenue $ 33.6 $ 104.7 $ 154.3 $ 154.0 Segment Gross Profit (Loss) LEU segment $ (0.9) $ 33.4 $ 61.0 $ 25.1 Technical solutions segment 0.1 2.1 1.6 0.6 Gross profit (loss) $ (0.8) $ 35.5 $ 62.6 $ 25.7 Revenue from Major Customers (10% or More of Total Revenue) In the three months ended September 30, 2020, two customers in the LEU segment represented $11.3 million and $7.4 million, respectively, of revenue and one customer in the technical solutions segment represented $13.5 million of revenue. In the nine months ended September 30, 2020, three customers in the LEU segment represented $32.4 million, $23.4 million and $17.9 million, respectively, of revenue and one customer in the technical solutions segment represented $33.4 million of revenue. In the three months ended September 30, 2019, three customers in the LEU segment represented $39.0 million, $23.4 million, and $10.7 million, respectively, of revenue and one customer in the technical solutions segment represented $15.2 million of revenue. In the nine months ended September 30, 2019, two customers in the LEU segment represented $74.0 million and $23.4 million, respectively, of revenue and one customer in the technical solutions segment represented $23.9 million of revenue. |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Event | SUBSEQUENT EVENTOn October 19, 2020, the Company announced the commencement of a tender offer to purchase up to $60 million of issued and outstanding Series B Senior Preferred Stock, par value $1.00 per share (the “Series B Preferred Shares”), at a price of $954.59 per Series B Preferred Share (inclusive of any rights to accrued but unpaid dividends), to the sellers in cash, less any applicable withholding taxes (the “Offer”). The Offer is being made pursuant to the Tender Offer Statement on Schedule TO filed by the Company on October 19, 2020 with the SEC. The aggregate liquidation preference per Series B Preferred Share (including accrued but unpaid dividends) was $1,272.78 as of September 30, 2020. If the maximum number of Series B Preferred Shares is validly tendered and purchased, the aggregate consideration paid will be $60,000,000. If the number of validly tendered shares of Series B Preferred Shares exceeds 62,854 shares, the Company will accept from each holder a number of shares equivalent to such holder’s tendered pro-rata percentage of the aggregate shares of Series B Preferred Shares tendered in the Offer. Under no circumstances, will the Company pay interest as part of the consideration, including, but not limited to, by reason of any delay in making payment. The Offer is currently set to expire on November 17, 2020. |
Revenue and Contracts with Cu_2
Revenue and Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from External Customers by Geographic Areas | The following table presents revenue from separative work units (“SWU”) and uranium sales disaggregated by geographical region based on the billing addresses of customers (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 United States $ 18.7 $ 53.7 $ 66.7 $ 91.4 Foreign — 34.1 46.1 34.1 Revenue - SWU and uranium $ 18.7 $ 87.8 $ 112.8 $ 125.5 |
Contract with Customer, Asset and Liability | September 30, December 31, 2019 Year-To-Date Change Accrued loss on HALEU Contract: Current - Accounts payable and accrued liabilities $ 8.9 $ 10.0 $ (1.1) Noncurrent - Other long-term liabilities $ 0.7 $ 8.3 $ (7.6) Deferred revenue - current $ 248.2 $ 243.0 $ 5.2 Advances from customers - current $ 1.5 $ 23.3 $ (21.8) Advances from customers - noncurrent $ 44.9 $ 29.4 $ 15.5 |
Special Charges (Tables)
Special Charges (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | Liability Nine Months Ended September 30, Liability Charges (Credits) for Termination Benefits Paid Workforce reductions: Corporate functions $ 1.2 $ 0.5 $ (1.0) $ 0.7 Piketon facility 0.2 — (0.2) — Total $ 1.4 $ 0.5 $ (1.2) $ 0.7 |
Cash, Cash Equivalents and Re_2
Cash, Cash Equivalents and Restricted Cash (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Cash, Cash Equivalents and Restricted Cash [Abstract] | |
Schedule of Cash and Cash Equivalents | The following table summarizes the Company’s cash, cash equivalents and restricted cash as presented on the condensed consolidated balance sheet to amounts on the condensed consolidated statement of cash flows (in millions): September 30, December 31, 2019 Cash and cash equivalents $ 152.8 $ 130.7 Deposits for financial assurance - current 0.2 0.2 Deposits for financial assurance - noncurrent 5.7 5.7 Total cash, cash equivalents and restricted cash $ 158.7 $ 136.6 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Inventory, Net [Abstract] | |
Schedule of Inventories | Components of inventories are as follows (in millions): September 30, 2020 December 31, 2019 Current Current Inventories, Net Current Current Inventories, Net Separative work units $ 10.1 $ 3.1 $ 7.0 $ 7.8 $ — $ 7.8 Uranium 56.5 4.7 51.8 56.7 5.6 51.1 Total $ 66.6 $ 7.8 $ 58.8 $ 64.5 $ 5.6 $ 58.9 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Excess Reorganization Value [Table Text Block] | Intangible asset balances are as follows (in millions): September 30, 2020 December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Amount Gross Carrying Amount Accumulated Amortization Net Amount Sales order book $ 54.6 $ 30.7 $ 23.9 $ 54.6 $ 29.9 $ 24.7 Customer relationships 68.9 27.6 41.3 68.9 24.1 44.8 Total $ 123.5 $ 58.3 $ 65.2 $ 123.5 $ 54.0 $ 69.5 |
Debt Schedule of Debt (Tables)
Debt Schedule of Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | A summary of debt is as follows (in millions): September 30, 2020 December 31, 2019 Maturity Current Long-Term Current Long-Term 8.25% Notes: Feb. 2027 Principal $ — $ 74.3 $ — $ 74.3 Interest 6.1 33.7 6.1 39.8 Total $ 6.1 $ 108.0 $ 6.1 $ 114.1 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Instruments Recorded at Fair Value | Financial Instruments Recorded at Fair Value (in millions): September 30, 2020 December 31, 2019 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 152.8 $ — $ — $ 152.8 $ 130.7 $ — $ — $ 130.7 Deferred compensation asset (a) 2.2 — — 2.2 1.8 — — 1.8 Liabilities: Deferred compensation obligation (a) $ 2.1 $ — $ — $ 2.1 $ 1.8 $ — $ — $ 1.8 |
Pension and Postretirement He_2
Pension and Postretirement Health and Life Benefits (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Net Benefit Costs [Table Text Block] | The components of net periodic benefit (credits) for the defined benefit pension plans were as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Service costs $ 0.9 $ 0.8 $ 2.7 $ 2.4 Interest costs 6.0 7.5 18.2 22.7 Amortization of prior service costs (credits), net — — (0.2) — Expected return on plan assets (gains) (9.3) (9.1) (28.1) (27.3) Net periodic benefit (credits) $ (2.4) $ (0.8) $ (7.4) $ (2.2) The components of net periodic benefit costs for the postretirement health and life benefit plans were as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Interest costs $ 1.2 $ 1.5 $ 3.6 $ 4.5 Amortization of prior service costs (credits), net (0.1) — (0.1) (0.1) Net periodic benefit costs $ 1.1 $ 1.5 $ 3.5 $ 4.4 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Net Income Per Share | Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Numerator (in millions): Net income (loss) $ (7.0) $ 22.8 $ 38.0 $ (13.7) Preferred stock dividends - undeclared and cumulative 1.9 1.9 5.9 5.9 Net income (loss) allocable to common stockholders $ (8.9) $ 20.9 $ 32.1 $ (19.6) Denominator (in thousands): Average common shares outstanding - basic 10,723 9,582 10,008 9,560 Potentially dilutive shares related to stock options and restricted stock units (a) — 44 274 — Average common shares outstanding - diluted 10,723 9,626 10,282 9,560 Net income (loss) per common share (in dollars): Basic $ (0.83) $ 2.18 $ 3.21 $ (2.05) Diluted $ (0.83) $ 2.17 $ 3.12 $ (2.05) (a) Common stock equivalents excluded from the diluted calculation as a result of a net loss in the period (in thousands) 317 — — 67 Options outstanding and considered anti-dilutive as their exercise price exceeded the average share market price (in thousands) — 460 — 460 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | |
Revenue from External Customers by Geographic Areas | The following table presents revenue from separative work units (“SWU”) and uranium sales disaggregated by geographical region based on the billing addresses of customers (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 United States $ 18.7 $ 53.7 $ 66.7 $ 91.4 Foreign — 34.1 46.1 34.1 Revenue - SWU and uranium $ 18.7 $ 87.8 $ 112.8 $ 125.5 |
Segment Reporting Information | The following table presents the Company’s segment information (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Revenue LEU segment: Separative work units $ 0.1 $ 75.0 $ 89.4 $ 87.4 Uranium 18.6 12.8 23.4 38.1 Total 18.7 87.8 112.8 125.5 Technical solutions segment 14.9 16.9 41.5 28.5 Total revenue $ 33.6 $ 104.7 $ 154.3 $ 154.0 Segment Gross Profit (Loss) LEU segment $ (0.9) $ 33.4 $ 61.0 $ 25.1 Technical solutions segment 0.1 2.1 1.6 0.6 Gross profit (loss) $ (0.8) $ 35.5 $ 62.6 $ 25.7 |
Revenue and Contracts with Cu_3
Revenue and Contracts with Customers (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Revenue, nonmonetary transaction | $ 23.4 | |||||
Nonmonetary transaction, amount of barter transaction | $ 15 | 44.4 | ||||
Deferred revenue, revenue recognized | 5.2 | |||||
Separative work units owed to others new borrowings | $ 1.7 | |||||
Separative work units owed to others noncurrent | $ 10.8 | 10.8 | ||||
Government cost obligation | 74.5 | 74.5 | ||||
Loss on contracts | $ 0 | |||||
Provision for Loss on Contracts | 8.9 | 8.9 | ||||
Accounts receivable, net | 14.1 | 14.1 | $ 21.1 | |||
Proceeds from settlement with customer | 32.4 | |||||
Revenue, remaining performance obligation, amount | 1,000 | 1,000 | ||||
Deferred Revenue and Advances from Customers Approximate | 300 | 300 | ||||
Minimum [Member] | ||||||
Company cost share portion | 18.3 | |||||
Maximum [Member] | ||||||
Government cost share portion | 115 | 115 | ||||
Government [Member] | ||||||
Provision for Loss on Contracts | 8.9 | $ 8.9 | $ 10 | |||
Proceeds from Customers | $ 41.5 |
Revenue and Contracts with Cu_4
Revenue and Contracts with Customers (Revenue from External Customers by Geographic Areas) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue | $ 33.6 | $ 104.7 | $ 154.3 | $ 154 |
Product [Member] | ||||
Revenue | 18.7 | 87.8 | 112.8 | 125.5 |
Product [Member] | United States | ||||
Revenue | 18.7 | 53.7 | 66.7 | 91.4 |
Product [Member] | Other Foreign | ||||
Revenue | $ 0 | $ 34.1 | $ 46.1 | $ 34.1 |
Revenue and Contracts with Cu_5
Revenue and Contracts with Customers (Contract with Customer Asset and Liability) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Deferred costs associated with deferred revenue | $ 145.4 | $ 145.4 | $ 144.1 | |
Provision for Loss on Contracts | 8.9 | 8.9 | ||
Provision for Loss on Contract Change | (1.1) | |||
Provision for loss on contracts, noncurrent | 0.7 | 0.7 | ||
Provision for Loss on Contract Noncurrent Change | (7.6) | |||
Loss on contracts | $ 0 | |||
Deferred revenue | 248.2 | 248.2 | 243 | |
Deferred revenue – change | 5.2 | |||
Advances from customers, current | 1.5 | 1.5 | 23.3 | |
Customer advances – change | (21.8) | |||
Advances from customer, noncurrent | 44.9 | 44.9 | 29.4 | |
Advances from customers, noncurrent - change | 15.5 | |||
Deferred revenue, additions | 5.2 | |||
Deferred revenue, revenue recognized | (5.2) | |||
Provision for Loss on Contracts Total | 9.6 | 9.6 | ||
Provision for Loss on Contracts Utilized | 3.4 | 8.7 | ||
Government [Member] | ||||
Provision for Loss on Contracts | 8.9 | 8.9 | 10 | |
Provision for loss on contracts, noncurrent | $ 0.7 | $ 0.7 | $ 8.3 |
Revenue and Contracts with Cu_6
Revenue and Contracts with Customers Revenue and Contracts with Customers (Schedule of Accounts Receivable) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Billed accounts receivable | $ 6 | $ 13.2 |
Unbilled contract revenue | 8.1 | 7.9 |
Accounts receivable, net | $ 14.1 | $ 21.1 |
Special Charges (Table) (Detail
Special Charges (Table) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Termination benefit costs | $ 0.6 | ||||
Special charges for workforce reductions and advisory costs | $ 0.6 | $ 0.8 | 0.5 | $ (2.2) | |
Payments for one-time termination benefits | (1.2) | ||||
Restructuring liability | 0.7 | 0.7 | $ 1.4 | ||
Contract Termination [Member] | |||||
Termination benefit costs | $ 2.9 | ||||
Special charges for workforce reductions and advisory costs | 0 | ||||
Payments for one-time termination benefits | (0.2) | ||||
Restructuring liability | 0 | 0 | 0.2 | ||
Other Restructuring [Member] | |||||
Special charges for workforce reductions and advisory costs | 0.5 | ||||
Payments for one-time termination benefits | (1) | ||||
Restructuring liability | $ 0.7 | $ 0.7 | $ 1.2 |
Special Charges (Narrative) (De
Special Charges (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Special charges for workforce reductions and advisory costs | $ 0.6 | $ 0.8 | $ 0.5 | $ (2.2) |
Termination benefit costs | 0.6 | |||
Restructuring cost, settled without cash | 0.1 | |||
Contract Termination [Member] | ||||
Special charges for workforce reductions and advisory costs | $ 0 | |||
Termination benefit costs | $ 2.9 |
Cash, Cash Equivalents and Re_3
Cash, Cash Equivalents and Restricted Cash (Schedule of Cash, Cash Equivalents and Restricted Cash) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 152.8 | $ 130.7 | ||
Restricted cash included in other current assets | 0.2 | 0.2 | ||
Restricted cash included in other long-term assets | 5.7 | 5.7 | ||
Total cash, cash equivalents and restricted cash | $ 158.7 | $ 136.6 | $ 159.7 | $ 100.1 |
Cash, Cash Equivalents and Re_4
Cash, Cash Equivalents and Restricted Cash (Schedule of Restricted Cash) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash included in other current assets | $ 0.2 | $ 0.2 |
Restricted cash included in other long-term assets | $ 5.7 | $ 5.7 |
Cash, Cash Equivalents and Re_5
Cash, Cash Equivalents and Restricted Cash (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Restricted cash included in other current assets | $ 0.2 | $ 0.2 |
Restricted cash included in other long-term assets | $ 5.7 | $ 5.7 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventories) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Inventory, Net [Abstract] | ||
Separative work units inventory | $ 10.1 | $ 7.8 |
Uranium inventory | 56.5 | 56.7 |
Inventories | 66.6 | 64.5 |
Separative work units owed to customers and suppliers | 3.1 | 0 |
Uranium owed to customers and suppliers | 4.7 | 5.6 |
Inventories owed to customers and suppliers | 7.8 | 5.6 |
Separative work units net of liability | 7 | 7.8 |
Uranium inventory net of liability | 51.8 | 51.1 |
Inventories, net | $ 58.8 | $ 58.9 |
Schedule of Intangible Assets (
Schedule of Intangible Assets (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, gross | $ 123.5 | $ 123.5 |
Accumulated intangible asset amortization | (58.3) | (54) |
Amortizable intangible assets, net | $ 65.2 | 69.5 |
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 | (30.7) | (29.9) |
Amortizable intangible assets, net | 23.9 | 24.7 |
Customer-Related Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, gross | 68.9 | 68.9 |
Accumulated intangible asset amortization | (27.6) | (24.1) |
Amortizable intangible assets, net | $ 41.3 | $ 44.8 |
Schedule of Debt (Details)
Schedule of Debt (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 108 | $ 114.1 |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, face amount | 74.3 | 74.3 |
Long-term debt, interest | 33.7 | 39.8 |
Long-term debt, current | 6.1 | 6.1 |
Long-term debt | $ 108 | $ 114.1 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Preferred stock, liquidation preference per share | $ 1,272.78 | |
Senior Notes [Member] | ||
Debt instrument interest rate | 8.25% | |
Long-term debt, face amount | $ 74.3 | $ 74.3 |
Long-term debt, current | $ 6.1 | $ 6.1 |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Instruments Recorded at Fair Value) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Cash and cash equivalents | $ 152.8 | $ 130.7 |
Cash and cash equivalents | 152.8 | 130.7 |
Deferred compensation asset | 2.2 | 1.8 |
Deferred compensation obligation | 2.1 | 1.8 |
Level 1 [Member] | ||
Cash and cash equivalents | 130.7 | |
Deferred compensation asset | 2.2 | 1.8 |
Deferred compensation obligation | $ 2.1 | $ 1.8 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - Senior Notes [Member] - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt, long-term and short-term, combined carrying value | $ 114.1 | $ 120.2 |
Long-term debt, current | 6.1 | 6.1 |
Long-term debt, fair value | 50 | 61.5 |
Long-term debt, face amount | $ 74.3 | $ 74.3 |
Pension and Postretirement He_3
Pension and Postretirement Health and Life Benefits (Schedule of Net Benefit Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Pension Plan, Defined Benefit [Member] | ||||
Service costs | $ 0.9 | $ 0.8 | $ 2.7 | $ 2.4 |
Interest costs | 6 | 7.5 | 18.2 | 22.7 |
Amortization of prior service costs (credits), net | 0 | 0 | (0.2) | 0 |
Expected return on plan assets (gains) | (9.3) | (9.1) | (28.1) | (27.3) |
Net periodic benefit cost (credit) | (2.4) | (0.8) | (7.4) | (2.2) |
Postretirement Health and Life Benefits Plans [Member] | ||||
Interest costs | 1.2 | 1.5 | 3.6 | 4.5 |
Amortization of prior service costs (credits), net | (0.1) | 0 | (0.1) | (0.1) |
Net periodic benefit cost (credit) | $ 1.1 | $ 1.5 | $ 3.5 | $ 4.4 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Increase (decrease) in deferred tax asset valuation allowance | $ 0.8 | |||
Provision (benefit) for income taxes | $ 0.2 | $ 0 | $ 0.6 | $ 0.1 |
Net Income Per Share (Schedule
Net Income Per Share (Schedule of Income Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Per Share Calculation [Line Items] | ||||||||
Net income (loss) | $ (7) | $ 33.7 | $ 11.3 | $ 22.8 | $ (15.6) | $ (20.9) | $ 38 | $ (13.7) |
Preferred stock dividends, undeclared and cumulative | 1.9 | 1.9 | 5.9 | 5.9 | ||||
Net income (loss) allocable to common stockholders | $ (8.9) | $ 20.9 | $ 32.1 | $ (19.6) | ||||
Average number of shares outstanding, basic | 10,723 | 9,582 | 10,008 | 9,560 | ||||
Potentially dilutive shares related to stock options | 0 | 44 | 274 | 0 | ||||
Average number of shares outstanding, diluted | 10,723 | 9,626 | 10,282 | 9,560 | ||||
Net income (loss) per common share - basic | $ (0.83) | $ 2.18 | $ 3.21 | $ (2.05) | ||||
Net income (loss) per common share - diluted | $ (0.83) | $ 2.17 | $ 3.12 | $ (2.05) | ||||
Antidilutive securities excluded from computation of earnings per share | 317 | 0 | 0 | 67 | ||||
Options with exercise price greater than market price | 0 | 460 | 0 | 460 |
Stockholders' Equity (Tables) (
Stockholders' Equity (Tables) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Class of Stock [Line Items] | ||
Stock issued during period | $ 23.1 | |
Preferred Stock Tender Offer Maximum | $ 60 | |
Preferred Series B [Member] | ||
Class of Stock [Line Items] | ||
Preferred Stock, Shares Issued | 104,574 | 104,574 |
Common Class A [Member] | ||
Class of Stock [Line Items] | ||
Stock Issued During Period, Shares, New Issues | 2,537,500 | |
Common Stock, Shares, Issued | 11,320,689 | 8,347,427 |
Common Stock Shares New Issue Offer | 2,350,000 | |
Common Stock New Issue Offer Per Share | $ 10 | |
Common Stock Shares New Issue Offer Option | 187,500 | |
Common Stock Value New Issues Before Expenses | $ 25.4 | |
Common Stock New Issue Expenses | $ 2.3 | |
Common Class B [Member] | ||
Class of Stock [Line Items] | ||
Common Stock, Shares, Issued | 719,200 | 1,117,462 |
Preferred Stock Tender Offer Maximum | $ 60 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | |
Class of Stock [Line Items] | |||
Preferred Stock, Shares Authorized | 20,000,000 | 20,000,000 | 20,000,000 |
Preferred Stock, Par Value Per Share | $ 1 | $ 1 | $ 1 |
Preferred Stock, Liquidation Preference Per Share | $ 1,272.78 | $ 1,272.78 | |
Common Class A [Member] | |||
Class of Stock [Line Items] | |||
Common Stock, Shares Authorized | 70,000,000 | 70,000,000 | 70,000,000 |
Common Stock, Par or Stated Value Per Share | $ 0.10 | $ 0.10 | $ 0.10 |
Common Stock, Shares, Issued | 11,320,689 | 11,320,689 | 8,347,427 |
Stock Issued During Period, Shares, New Issues | 2,537,500 | ||
Common Class B [Member] | |||
Class of Stock [Line Items] | |||
Common Stock, Shares Authorized | 30,000,000 | 30,000,000 | 30,000,000 |
Common Stock, Par or Stated Value Per Share | $ 0.10 | $ 0.10 | $ 0.10 |
Common Stock, Shares, Issued | 719,200 | 719,200 | 1,117,462 |
Preferred Series B [Member] | |||
Class of Stock [Line Items] | |||
Preferred Stock, Shares Issued | 104,574 | 104,574 | 104,574 |
Preferred stock | $ 4,600,000 | $ 4,600,000 | $ 4,600,000 |
Preferred Stock, Dividend Rate, Percentage | 7.50% | ||
Preferred Stock, Liquidation Preference, Value | $ 133,100,000 | $ 133,100,000 | $ 127,200,000 |
Commitment and Contingencies (D
Commitment and Contingencies (Details) $ in Millions | Sep. 30, 2020USD ($) |
Claim filed, unrecorded gain contingency, | $ 42.8 |
Segment Information (Segment Re
Segment Information (Segment Reporting Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 33.6 | $ 104.7 | $ 154.3 | $ 154 |
Gross Profit | (0.8) | 35.5 | 62.6 | 25.7 |
Low Enriched Uranium Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Gross Profit | (0.9) | 33.4 | 61 | 25.1 |
Technical Solutions Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Gross Profit | 0.1 | 2.1 | 1.6 | 0.6 |
Separative Work Units [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 0.1 | 75 | 89.4 | 87.4 |
Uranium [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 18.6 | 12.8 | 23.4 | 38.1 |
Product [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 18.7 | 87.8 | 112.8 | 125.5 |
Service [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 14.9 | $ 16.9 | $ 41.5 | $ 28.5 |
Segment Information Schedule Of
Segment Information Schedule Of Entity Wide Revenue By Major Customers (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Customer A [Member] | Low Enriched Uranium Segment [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Revenue | $ 11.3 | $ 39 | $ 32.4 | $ 74 |
Customer B [Member] | Low Enriched Uranium Segment [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Revenue | 7.4 | 23.4 | 23.4 | 23.4 |
Customer C [Member] | Low Enriched Uranium Segment [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Revenue | 10.7 | 17.9 | ||
Customer C [Member] | Technical Solutions Segment [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Revenue | $ 13.5 | $ 23.9 | ||
Customer D [Member] | Technical Solutions Segment [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Revenue | $ 15.2 | $ 33.4 |
Subsequent Event Narrative (Det
Subsequent Event Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Preferred Stock Tender Offer Maximum | $ 60 | |
Preferred Stock, Par Value Per Share | $ 1 | $ 1 |
Preferred Stock Tender Offer Per Share | 954.59 | |
Preferred Stock, Liquidation Preference Per Share | $ 1,272.78 | |
Preferred Stock Tender Offer Maximum Shares | 62,854 |