SPECIAL CHARGES

The cessation of enrichment at the Paducah Gaseous Diffusion Plant (the “Paducah GDP”) and evolving business needs have resulted in workforce reductions since July 2013. In the six months ended June 30, 2015, special charges included related termination benefits of $3.8 million, less $0.3 million for employee severance paid by the Company and invoiced to the U.S. Department of Energy (“DOE”) for its share of employee severance pursuant to the USEC Privatization Act.

In September 2015, Centrus completed a successful three-year demonstration of American Centrifuge technology at its facility in Piketon, Ohio. The demonstration effort was primarily funded by the U.S. government. As a result of reduced program funding, Centrus incurred a special charge of $8.7 million in the third quarter of 2015 for estimated employee termination benefits, consisting primarily of payments under its pre-existing severance plan. An additional $0.1 million special charge was incurred in the second quarter of 2016 as an adjustment to accrued severance benefits for current salary levels. Centrus expects to make payments for these workforce reductions through 2017.

In the second quarter of 2016, the Company commenced a project to align its corporate structure to the scale of its ongoing business operations and to update related information technology. The company incurred advisory costs related to the reengineering project of $0.5 million in the three months ended June 30, 2016.

A summary of termination benefit activity and changes in the related balance sheet account in the six months ended June 30, 2016, follows (in millions):



	Liability Dec. 31, 2015		Six Months Ended June 30, 2016					Liability June 30, 2016
	Liability Dec. 31, 2015		Charges for Termination Benefits		Paid			Liability June 30, 2016
Workforce reductions:
Enrichment cessation and evolving business needs	$	0.3	$	—	$	(0.1	)	$	0.2
American Centrifuge	8.4		0.1		(2.2		)	6.3
	$	8.7	$	0.1	$	(2.3	)	$	6.5