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Accounts Receivable
 12 Months Ended
Dec. 31, 2017
Accounts Receivable, Net, Current [Abstract]  
Accounts Receivable
RECEIVABLES

A summary of accounts receivable, net, follows:
 
December 31,
($ millions)
2017
 
2016
 
 
 
 
Utility customers and other
$
42.3

 
$
15.3

Contract services, primarily DOE
17.9

 
4.6

Accounts receivable, net
$
60.2

 
$
19.9


 

Centrus formerly performed site services work under contracts with DOE and its contractors at the former Portsmouth and Paducah gaseous diffusion plants. There is the potential for additional revenue to be recognized for this work pending the outcome of legal proceedings related to the Company’s claims for payment and the potential release of previously established valuation allowances on receivables.

First Quarter 2018 Settlement

On January 11, 2018, the Company entered into a settlement agreement with DOE and the United States government regarding breach of contract claims relating to work performed by the Company under contracts with DOE and subcontracts with DOE contractors. As of December 31, 2017, the receivables balance related to the claims being settled is $14.5 million.

Under the terms of the settlement agreement, DOE has agreed to settle all claims raised as part of and subsequent to the litigation for a total of $24.0 million and provide a complete close out of all such contracts and subcontracts settled under the settlement agreement without any further audit or review of the Company’s costs or incurred cost submissions. The $24.0 million settlement amount will be satisfied by applying approximately $19.3 million of unapplied payments received from the United States government in prior years and the United States government making a cash payment to the Company of approximately $4.7 million.

As of December 31, 2017, the receivables balance of $14.5 million related to the settlement is classified as Accounts Receivable, net on the consolidated balance sheet based on the impending settlement. Receivables from DOE related to the claims were included in Other Long-Term Assets on the consolidated balance sheet in prior periods.

As of December 31, 2017, unapplied payments from DOE of $19.3 million are classified as Deferred Revenue and Advances from Customers on the consolidated balance sheet based on the impending settlement. These amounts were included in Other Long-Term Liabilities on the consolidated balance sheet in prior periods.

Claims Related to Pension and Postretirement Benefits Costs

Unresolved claims with DOE relate to certain pension and postretirement benefits costs. In December 2012, the Company invoiced DOE for $42.8 million, representing its share of pension and postretirement benefits costs related to the transition of Portsmouth site employees to DOE’s D&D contractor, as permitted by CAS and based on CAS calculation methodology. DOE denied payment on this invoice in January 2013, and subsequent to providing additional information, as requested, to DOE, the Company submitted a claim on August 30, 2013, under the Contract Disputes Act for payment of the $42.8 million. On August 27, 2014, the DOE contracting officer denied the Company’s claim. As a result, Centrus filed a complaint with the U.S. Court of Federal Claims in January 2015, but there is no assurance the Company will be successful in its appeal. The parties are engaged in settlement discussions and further action on the case is stayed pending the outcome of such discussions. The Company has a full valuation allowance for this claim due to the lack of a resolution with DOE and uncertainty regarding the amounts owed and the timing of collection. The amounts owed by DOE may be more than the amounts the Company has invoiced to date.