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Revenue and Contracts with Customers | 12 Months Ended
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Dec. 31, 2018
Revenue from Contract with Customer [Abstract] |
Revenue from Contract with Customer | REVENUE AND CONTRACTS WITH CUSTOMERS Disaggregation of Revenue The following table presents revenue from SWU and uranium sales disaggregated by geographical region based on the billing addresses of customers (in millions):
| Year Ended December 31,
| 2018 |  | 2017
United States | $ | 112.7 |  |  | $ | 111.5 |
Foreign: |  |  |
Belgium | 35.2 |  |  | 34.9 |
Japan | 3.1 |  |  | 49.0 |
Other | 13.4 |  |  | — |
Revenue - SWU and uranium | $ | 164.4 |  |  | $ | 195.4 |
Refer to Note 18, Revenue by Geographic Area, Major Customers and Segment Information for disaggregation of revenue by segment. Disaggregation by end-market is provided in Note 18 and the consolidated statements of operations. SWU and uranium sales are made primarily to electric utility customers. Contract services revenue resulted primarily from services provided to government contractors and, in the first quarter of 2018, the settlement with DOE and the U.S. government. SWU and uranium revenue is recognized at point of sale and contract services revenue is generally recognized over time. Contract Balances The following table represents changes in the Company’s contract assets and contract liabilities balances (in millions):
|  | December 31, 2018 |  | January 1, 2018 |  | Year-To-Date Change
Contract assets |  |  |  |  |  |
Accounts receivable: |  |  |  |  |  |
Billed |  | $ | 50.4 |  |  | $ | 60.2 |  |  | $ | (9.8 | )
Uranium feed receivable |  | 9.8 |  |  | — |  |  | 9.8 |
Unbilled contract revenue |  | — |  |  | 0.1 |  |  | (0.1 | )
Accounts receivable |  | $ | 60.2 |  |  | $ | 60.3 |  |  | $ | (0.1 | )
Deferred costs associated with deferred revenue |  | $ | 134.9 |  |  | $ | 122.3 |  |  | $ | 12.6 |
Contract liabilities |  |  |  |  |  |
Deferred revenue and advances from customers - current: |  |  |  |  |  |
Deferred revenue |  | $ | 204.5 |  |  | $ | 172.5 |  |  | $ | 32.0 |
Advances from customers |  | — |  |  | 19.3 |  |  | (19.3 | )
Deferred revenue and advances from customers - current |  | $ | 204.5 |  |  | $ | 191.8 |  |  | $ | 12.7 |
Advances from customers - noncurrent |  | $ | 15.0 |  |  | $ | — |  |  | $ | 15.0 |
Deferred cost and deferred revenue activity for the year ended December 31, 2018, follows (in millions):
| Deferred Sales in the Period |  | Previously Deferred Sales Recognized in the Period |  | Year-To-Date Change
Deferred costs associated with deferred revenue | $ | 25.4 |  |  | $ | (12.8 | ) |  | $ | 12.6 |
Deferred revenue | 55.3 |  |  | (23.3 | ) |  | 32.0 |
In the second quarter of 2018, the Company received uranium valued at $14.5 million from a customer that elected to defer a SWU purchase obligation for a period greater than one year. Under the contract, the customer has not received title to SWU or LEU product from the Company. The liability to the customer is included in Advances from Customers, a noncurrent liability. In December 2018, the Company borrowed $7.3 million of SWU from a customer under terms which require repayment within 48 months. The Company recorded the SWU and the related liability for the borrowing using an average purchase price over the borrowing period. The liability to the customer is included in Other Liabilities, which is included in noncurrent liabilities. On January 11, 2018, the Company entered into a settlement agreement with DOE and the U.S. government regarding breach of contract claims relating to work performed by the Company under contracts with DOE and subcontracts with DOE contractors. DOE agreed to settle all claims raised as part of and subsequent to the litigation, except with respect to certain claims for pension and postretirement benefits, 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. Prior to the settlement, the Company had a receivables balance related to the claims being settled of $14.5 million. In 2018, the Company (a) received $4.7 million from the U.S. government, (b) applied approximately $19.3 million of advances from the U.S. government received in prior years against the receivables balance, and (c) recorded additional revenue of $9.5 million. Revenue for the contract services segment, principally representing engineering and testing activities performed by the Company, as well as technical and resource support, is recognized over the contractual period as services are rendered. The contract services segment also includes limited services provided by Centrus to the DOE and its contractors at the Piketon site related to facilities the Company leases from DOE. In 2018, revenue for the contract services segment included $9.5 million under a January 2018 settlement agreement with DOE and the U.S. government. Centrus and DOE have yet to fully settle the Company’s claims for reimbursements for certain pension and postretirement benefits costs related to past contract work performed for DOE. 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. As a result of the application of fresh start accounting following the Company’s emergence from Chapter 11 bankruptcy on September 30, 2014, the receivables related to the Company’s claims for payment are carried at fair value as of September 30, 2014, which is net of the valuation allowances. LEU Segment Order Book The SWU component of LEU is typically bought and sold under long-term contracts with deliveries over several years. The Company’s agreements for natural uranium sales are generally shorter-term, fixed-commitment contracts. The Company’s order book sales under contract in the LEU segment (“order book”) extends to 2030. The order book represents the Company’s remaining performance obligations under these contracts and includes the Deferred Revenue amounts in the Contract Balances table above. The order book was $1.0 billion as of December 31, 2018, compared to $1.3 billion at December 31, 2017, reflecting completed deliveries and new contracts signed in 2018 and a rejection of a contract by a customer in bankruptcy proceedings. No other adjustments were required to the Company’s consolidated financial statements as a result of the contract rejection. Refer to Note 16, Commitments and Contingencies, for additional information regarding the customer and claims filed by the Company. Most of the Company’s contracts provide for fixed purchases of SWU during a given year. T he Company’s estimate of the aggregate dollar amount of future SWU and uranium sales is partially based on customers’ estimates of the timing and size of their fuel requirements and other assumptions that are subject to change. For example, depending on the terms of specific contracts, the customer may be able to increase or decrease the quantity delivered within an agreed range. T he Company’s order book estimate is also based on the Company’s estimates of selling prices, which are subject to change. For example, depending on the terms of specific contracts, prices may be adjusted based on escalation using a general inflation index, published SWU price indicators prevailing at the time of delivery, and other factors, all of which are variable. T he Company uses external composite forecasts of future market prices and inflation rates in its pricing estimates. Contract Modification In 2018 the Company entered into an arrangement with a fabricator to facilitate a prior arrangement with a customer that resulted in a modification of its previous SWU sales arrangement with the customer. The product to be delivered under the modified arrangement is distinct and, therefore, the modification is being accounted for on a prospective basis. No revenue was recognized in 2018 from the customer as the distinct product was not delivered. Under the new arrangement, the Company made a payment to the customer of $20.7 million that is a contract asset, which will be recovered as payments are received from the customer for the remaining product delivery. The Company received $21.1 million in December 2018 that is a contract liability and the net of these amounts of $0.4 million is classified as a contract liability as of December 31, 2018, which is included in Advances from Customers, a noncurrent liability.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -URI http://asc.fasb.org/topic&trid=2122369 + Details
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