Inventories

12 Months Ended

Dec. 31, 2021

INVENTORIES

Centrus holds uranium at licensed locations in the form of natural uranium and as the uranium component of LEU. Centrus also holds SWU as the SWU component of LEU at licensed locations (e.g., fabricators) to meet book transfer requests by customers. Fabricators process LEU into fuel for use in nuclear reactors. Components of inventories are as follows (in millions):


	December 31, 2021						December 31, 2020
	Current Assets		Current Liabilities (a)		Inventories, Net		Current Assets		Current Liabilities (a)		Inventories, Net
Separative work units	$	8.8	$	—	$	8.8	$	17.0	$	4.6	$	12.4
Uranium	82.3		8.4		73.9		47.8		0.3		47.5
Total	$	91.1	$	8.4	$	82.7	$	64.8	$	4.9	$	59.9

(a)Inventories owed to customers and suppliers, included in current liabilities, include SWU and uranium inventories owed to fabricators.

Inventories are valued at the lower of cost or net realizable value. In 2021, there was a valuation adjustment to reflect an update of projected timing and sources of inventory to be used for repayment of borrowed SWU inventory. There were no valuation adjustments in 2020. For details, refer to Note 1, Summary of Significant Accounting Policies — Contract Liabilities — LEU Segment.

The Company may also borrow SWU from customers, in which case the Company will record the SWU and the related liability for the borrowing using a projected average purchase price over the borrowing period. In 2018 through 2020 the Company borrowed SWU inventory valued at $20.7 million from a customer under an agreement signed in 2017 and recorded the SWU and the related liability using the Company’s average unit price of SWU purchases under contract projected to be used for repayment. The loan is repayable only with SWU. The cumulative liability to the customer for borrowed inventory was revalued to $25.5 million in the third quarter of 2021. The revaluation reflected an updated projection of the timing and sources of inventory to be used for repayment. In the fourth quarter of 2021, the Company repaid borrowed SWU inventory valued at $3.1 million to a customer and reduced the SWU and the related liability using an average purchase price over the borrowing period. The remaining liability to the customer of $22.4 million for borrowed inventory is included in Other Long-Term Liabilities. Cost of Sales for the twelve months ended December 31, 2021, includes the related expense of $4.8 million.