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Portsmouth Transition of Services
9 Months Ended
Sep. 30, 2011
Portsmouth Transition of Services 
Portsmouth Transition of Services
5. PORTSMOUTH TRANSITION OF SERVICES

USEC ceased uranium enrichment operations at the Portsmouth GDP, located in Piketon, Ohio, in 2001.  Over the past decade, USEC maintained the Portsmouth site and performed services under contract with DOE. DOE now has a contract for the decontamination and decommissioning ("D&D") of the Portsmouth site with a joint venture between Fluor Corporation and The Babcock & Wilcox Company. USEC has returned to DOE all leased facilities at the Portsmouth site other than those used for the ACP and administrative purposes, and DOE has agreed to provide infrastructure services in support of the construction and operation of the ACP. USEC is permitted to re-lease certain facilities in the event they are needed to provide utility services to the ACP and DOE or its contractors are not continuing such services. On September 30, 2011, USEC's contracts for maintaining the Portsmouth facilities and performing services for DOE expired and USEC completed the transition of facilities to the D&D contractor. As part of the transition, NRC terminated USEC's certificate of compliance and USEC transferred certain assets to DOE and remains responsible for the costs of disposal of certain wastes. USEC has agreed to pay DOE its cost of disposing of such wastes, which was estimated to be $7.8 million and is recorded as a current liability. USEC will continue to provide some limited services to DOE and its contractors at the Portsmouth site related to facilities we continue to lease for the ACP.

The transition of Portsmouth site contract services workers from USEC to the D&D contractor began in the first quarter of 2011 and was completed on September 30, 2011. Severance liabilities for those workers not offered employment by the D&D contractor is less than $1 million, with DOE owing a portion of this amount related to contract closeout, and is recorded as a current liability as of September 30, 2011. Severance amounts are expected to be paid in the fourth quarter of 2011.

For USEC's defined benefit pension plan and postretirement health and life benefit plans, the transfer of employees to the D&D contractor resulted in curtailment charges to cost of sales of $0.4 million in 2010 and $5.1 million in 2011.