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Transition Charges | 12 Months Ended
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Dec. 31, 2014
Restructuring and Related Activities [Abstract] |
Transition Charges | TRANSITION CHARGES Non-Production Expenses Related to Ceasing Enrichment at the Paducah Plant The Company ceased uranium enrichment at the Paducah GDP at the end of May 2013 and has subsequently completed repackaging and transferring its inventory to off-site licensed locations to meet future customer orders. On October 21, 2014, all of the leased portions of the Paducah GDP were de-leased and returned to DOE. Pursuant to a June 2014 agreement with DOE, the lease will terminate with respect to the Paducah GDP on August 1, 2015. The termination of the lease with respect to the Paducah GDP does not affect the Company’s right to lease portions of the DOE-owned site in Piketon, Ohio needed for the American Centrifuge program. The USEC Privatization Act and the lease for the plant provide that DOE remains responsible for decontamination and decommissioning of the Paducah GDP site. As the Company accelerated the expected productive life of plant assets and ceased uranium enrichment at the Paducah GDP, the Company has incurred a number of expenses unrelated to production that have been charged directly to cost of sales. Non-production expenses totaled $17.6 million in the three months ended December 31, 2014, $66.7 million in the nine months ended September 30, 2014 and $194.2 million in 2013, as follows:
- | Site expenses, including lease turnover activities and Paducah and Portsmouth retiree benefit costs, of $17.2 million in the three months ended December 31, 2014, $51.3 million in the nine months ended September 30, 2014, and $103.0 million in 2013. Following the cessation of enrichment at the Paducah GDP, costs for plant activities that formerly were capitalized as production costs have been charged directly to cost of sales including inventory management and disposition, ongoing regulatory compliance, utility requirements for operations, security, and other site management activities related to transition of facilities and infrastructure to DOE in October 2014;
- | Inventory charges of $0.4 million in the three months ended December 31, 2014, $13.5 million in the nine months ended September 30, 2014, and $40.2 million in 2013. The Company incurred charges for residual uranium in cylinders transferred to DOE and inventories that had been deployed for cascade drawdown, assay blending and repackaging. The Company determined that it was uneconomic to recover resulting residual quantities for resale. In 2013, charges included uranium inventory valuation adjustments of $15.2 million to reflect declines in uranium market price indicators. Inventories of SWU and uranium are valued at lower of cost or market;
- | Accelerated asset charges of $1.9 million in the nine months ended September 30, 2014 and $39.2 million in 2013. Beginning in the fourth quarter of 2012, the expected productive life of property, plant and equipment at the Paducah GDP was reduced from the lease term ending June 2016 to an accelerated basis ending December 2014. In addition, beginning in the third quarter of 2012, costs that would have been previously treated as construction work in progress were treated similar to maintenance and repair costs because of the shorter expected productive life of the Paducah GDP. The expected productive life of the Paducah GDP was further reduced following the cessation of enrichment at the end of May 2013, and the depreciation of property, plant and equipment at the Paducah GDP was completed as of June 30, 2014. In 2013, charges included an immediate asset retirement charge of $19.8 million for property, plant and equipment formerly used in the enrichment process at the Paducah GDP; and
- | Power contract losses of $11.8 million in 2013. As a result of falling prices in power markets, the Company incurred expenses as it ceased enrichment at the Paducah GDP and canceled remaining power purchases.
Special Charges Summary A summary of special charges and changes in the related balance sheet accounts, follows (in millions):
| Predecessor |  |  | Successor
| Liability Balance to Be Paid, Dec. 31, 2012 |  | 2013 |  | Liability Balance to Be Paid, Dec. 31, 2013 |  | Nine Months Ending Sep. 30, 2014 |  |  | Liability Balance to Be Paid, Sep. 30, 2014
|  | Special Charges |  | 2013 Paid |  |  | Special Charges |  | Paid |  |
Workforce reductions, primarily severance payments | $ | — |  |  | $ | 25.2 |  |  | $ | (4.0 | ) |  | $ | 21.2 |  |  | $ | 4.5 |  |  | $ | (13.6 | ) |  |  | $ | 12.1 |
Less: Amounts billed to DOE | * |  |  | (1.2 | ) |  | * |  |  | * |  |  | (2.4 | ) |  | * |  |  |  | * |
Pension and postretirement benefit charges, non-cash | * |  |  | 22.2 |  |  | * |  |  | * |  |  | — |  |  | * |  |  |  | * |
Advisory costs | 0.1 |  |  | 11.0 |  |  | (9.9 | ) |  | 1.2 |  |  | — |  |  | (1.2 | ) |  |  | — |
| $ | 0.1 |  |  | $ | 57.2 |  |  | $ | (13.9 | ) |  | $ | 22.4 |  |  | $ | 2.1 |  |  | $ | (14.8 | ) |  |  | $ | 12.1 |
| Successor
| Liability Balance to Be Paid, Sep. 30, 2014 |  | Three Months Ending Dec. 31, 2014 |  | Liability Balance to Be Paid, Dec. 31, 2014
|  | Special Charges |  | Paid |
Workforce reductions, primarily severance payments | $ | 12.1 |  |  | $ | 3.7 |  |  | $ | (13.4 | ) |  | $ | 2.4 |
Less: Amounts billed to DOE | * |  |  | (1.6 | ) |  | * |  |  | * |
| $ | 12.1 |  |  | $ | 2.1 |  |  | $ | (13.4 | ) |  | $ | 2.4 |
* - not applicable Special Charges for Workforce Reductions The cessation of enrichment at the Paducah GDP and evolving business needs have resulted in workforce reductions since July 2013 of 1,081 employees, including 1,036 employees at the Paducah GDP and 45 employees at American Centrifuge and headquarters. DOE’s liability for its share of Paducah employee severance paid by the Company is pursuant to the USEC Privatization Act. Accounts receivable as of December 31, 2014 include $4.9 million due from DOE for its share. The Company froze benefit accruals under its defined benefit pension plans, effective August 5, 2013, for active employees other than those who were covered by a collective bargaining agreement at the Paducah GDP. Pension benefits no longer increased for these employees to reflect changes in compensation or company service. However, these employees did not lose any benefits earned through August 4, 2013 under the pension plans and continued to accrue service credits toward vesting and qualifying for early or unreduced retirement benefits under the plans. Unamortized prior service costs related to those pension plan participants were accelerated. In addition, the Paducah workforce layoffs were expected to accelerate retirement obligations in the pension and postretirement benefit plans. Unamortized prior service costs related to affected plan participants were accelerated due to these terminations. Moreover, and in accordance with plan documents, certain affected plan participants were credited additional plan service credits based on their involuntary termination of employment. The net impact recorded in special charges for the year ended December 31, 2013 for these plans was $22.2 million. Charges for Advisory Costs Since late 2012, the Company had been engaged with advisors on the restructuring of its balance sheet. Special charges recorded for these advisors totaled $11.0 million in 2013. The Company has incurred advisory costs related to the Bankruptcy Filing in 2014 and these charges are included in Reorganization Items, Net, as detailed in Note 5.

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 5.P.3) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140864-122747 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 5 -Section P -Subsection 3, 4 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 5.P.4) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140904-122747 + Details
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