SPECIAL CHARGES FOR WORKFORCE REDUCTIONS

Centrus notified its American Centrifuge employees in September 2015 of possible layoffs beginning in November 2015 as a result of DOE’s decision to reduce funding for advanced uranium enrichment centrifuge research under the Company’s contract with UT-Battelle. Based on the level of funding reduction, Centrus incurred a special charge of $8.7 million in the third quarter of 2015 for estimated termination benefits consisting primarily of payments under its pre-existing severance plan. Centrus expects to make payments for these workforce reductions through early 2017.

In addition, the cessation of enrichment at the Paducah GDP and evolving business needs have resulted in workforce reductions since July 2013. Special charges include related termination benefits less severance paid by the Company and invoiced to DOE for its share of employee severance pursuant to the USEC Privatization Act.

A summary of special charges and changes in the related balance sheet accounts follows (in millions):



	Predecessor								Successor
	Liability Balance to Be Paid, Dec. 31, 2013		Nine Months Ended Sep. 30, 2014						Liability Balance to Be Paid, Sep. 30, 2014		Three Months Ended Dec. 31, 2014						Liability Balance to Be Paid, Dec. 31, 2014
	Liability Balance to Be Paid, Dec. 31, 2013		Special Charges			Paid			Liability Balance to Be Paid, Sep. 30, 2014		Special Charges			Paid			Liability Balance to Be Paid, Dec. 31, 2014
Workforce reductions, primarily severance payments	$	21.2	$	4.5		$	(13.6	)	$	12.1	$	3.7		$	(13.4	)	$	2.4
Less: Amounts billed to DOE			(2.4		)						(1.6		)
			$	2.1							$	2.1



	Successor
	Liability Balance to Be Paid, Dec. 31, 2014		2015						Liability Balance to Be Paid, Dec. 31, 2015
	Liability Balance to Be Paid, Dec. 31, 2014		Special Charges			Paid			Liability Balance to Be Paid, Dec. 31, 2015
Workforce reductions, primarily severance payments	$	2.4	$	13.6		$	(7.3	)	$	8.7
Less: Amounts billed to DOE			(0.4		)
			$	13.2