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Contract Services and Advanced Technology Costs
3 Months Ended
Mar. 31, 2016
Research and Development [Abstract]  
Contract Services and Advanced Technology Costs and Other Income
CONTRACT SERVICES AND ADVANCED TECHNOLOGY COSTS

The contract services segment includes Revenue and Cost of Sales for American Centrifuge work Centrus performs as a contractor to UT-Battelle. The Company’s current contract signed in March 2016 with UT-Battelle provides for continued development work at the Company’s facilities in Oak Ridge, Tennessee, through September 30, 2016. The contract is a firm, fixed-price contract that provides for payments for monthly reports of approximately $2.7 million per month, down from approximately $6.9 million per month.

Although the Company’s prior contract with UT-Battelle expired September 30, 2015, Centrus continued to perform work at the expected reduced scope as the parties worked toward a successor agreement. The new contract signed in March 2016 provided for payment for reports related to work performed since October 1, 2015. Revenue in the three months ended March 31, 2016 includes $8.1 million for March reports on work performed in the three months ended December 31, 2015, and $8.1 million for March reports on work performed in the three months ended March 31, 2016. Expenses for contract work performed in the three months ended March 31, 2016 are included in Cost of Sales. Expenses for work performed in the three months ended December 31, 2015 before there was a contract were included in Advanced Technology Costs in 2015.

American Centrifuge expenses that are outside of our contracts with UT-Battelle, including demobilization and maintenance costs, are included in Advanced Technology Costs. In addition to severance costs (see Note 2) and demobilization costs, Centrus will incur expenditures associated with the decontamination and decommissioning (“D&D”) of the Piketon facility in accordance with the requirements of the U.S Nuclear Regulatory Commission (“NRC”) and DOE (see Note 13).