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Revenue and Contracts with Customers
 3 Months Ended
Mar. 31, 2022
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 separative work units (“SWU”) and uranium sales disaggregated by geographical region based on the billing addresses of customers (in millions):

Three Months Ended March 31,
20222021
United States$12.6 $9.6 
Foreign 5.1 28.5 
Revenue - SWU and uranium$17.7 $38.1 

Refer to Note 12, Segment Information, for disaggregation of revenue by segment. SWU sales are made primarily to electric utility customers and uranium sales are made primarily to other nuclear fuel related companies. Technical solutions revenue resulted primarily from services provided to the government and its contractors. SWU
and uranium revenue is recognized at point of sale and technical solutions revenue is generally recognized over time.

Accounts Receivable
March 31, 2022December 31, 2021
($ millions)
Accounts receivable:
Billed$5.3 $23.1 
Unbilled *7.2 6.0 
Accounts receivable$12.5 $29.1 
* Billings under certain contracts in the technical services segment are invoiced based on approved provisional billing rates. Unbilled revenue represents the difference between actual costs incurred and invoiced amounts. The Company expects to invoice and collect the unbilled amounts after actual rates are submitted to the customer and approved. Unbilled revenue also includes unconditional rights to payment that are not yet billable under applicable contracts pending the compilation of supporting documentation.

Contract Liabilities

The following table presents changes in contract liability balances (in millions):
March 31, 2022December 31, 2021Year-To-Date Change
Accrued loss on HALEU Contract:
Current - Accounts payable and accrued liabilities
$— $0.5 $(0.5)
Deferred revenue - current$287.8 $288.1 $(0.3)
Advances from customers - current$15.0 $15.0 $— 
Advances from customers - noncurrent$45.1 $45.1 $— 

Previously deferred sales recognized in revenue totaled $0.3 million and $28.5 million in the three months ended March 31, 2022 and 2021, respectively.

LEU Segment

The SWU component of low-enriched uranium (“LEU”) typically is bought and sold under contracts with deliveries over several years. The Company’s agreements for natural uranium sales generally are shorter-term, fixed-commitment contracts. The Company’s order book of sales under contract in the LEU segment (“order book”) extends to 2029. As of March 31, 2022, the order book was approximately $1.0 billion. The order book represents the estimated aggregate dollar amount of revenue for future SWU and uranium deliveries under contract and includes approximately $0.3 billion of Deferred Revenue and Advances from Customers. As of December 31, 2021, the order book was approximately $1.0 billion.

Most of the Company’s customer contracts provide for fixed purchases of SWU during a given year. The Company’s order book 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. The Company’s order book estimate also is based on the Company’s estimates of selling prices, which may be 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. The Company uses external composite forecasts of future market prices and inflation rates in its pricing estimates.
Technical Solutions Segment

Revenue for the technical solutions segment, representing the Company’s technical, manufacturing, engineering, procurement, construction, and operations services offered to public and private sector customers, is recognized over the contractual period as services are rendered.

On October 31, 2019, the Company signed a cost-share contract with the U.S. Department of Energy (“DOE”) (the “HALEU Contract”) to deploy a cascade of centrifuges to demonstrate production of high-assay, low-enriched uranium (“HALEU”) for advanced reactors. HALEU is a component of an advanced nuclear reactor fuel that is not commercially available today and may be required for a number of advanced reactor and fuel designs currently under development in both the commercial and government sectors. The program has been under way since May 31, 2019, when the Company and DOE signed a preliminary letter agreement that allowed work to begin while the full contract was being finalized.

In 2019, under the HALEU Contract, DOE agreed to reimburse the Company for 80% of its costs incurred in performing the contract, up to a maximum of $115.0 million which was increased to $130.0 million as of March 31, 2022. In addition, on April 7, 2022, the Company received a $12.0 million modification to increase the total contract funding to $142.0 million. In April 2022, the HALEU Contract was modified to extend the period of performance to November 30, 2022 with authorization to work through August 31, 2022. The Company’s cost share is the corresponding 20% and any costs the Company elects to incur above these amounts. Costs under the HALEU Contract include program costs, including direct labor and materials and associated indirect costs that are classified as Cost of Sales, and an allocation of corporate costs supporting the program that are classified as Selling, General and Administrative Expenses. The impact to Cost of Sales in the three months ended March 31, 2022 and 2021 is $0.5 million and $2.0 million, respectively, for previously accrued contract losses attributable to work performed in the periods. As of March 31, 2022, a total of $19.6 million of previously accrued contract losses have been realized and the accrued contract loss balance included in Accounts Payable and Accrued Liabilities is $0. The Company has received aggregate cash payments under the HALEU Contract of $132.3 million through March 31, 2022.

Additional COVID-19-related impacts, delays in DOE furnishing equipment, or changes to the existing scope of the HALEU Contract could result in further material increases to the estimate of the costs required to complete the HALEU Contract, as well as delay completion of the contract. The Company does not currently have a contractual obligation to perform work in excess of the funding provided by DOE and, therefore, no additional costs have been accrued as of March 31, 2022. If DOE does not commit to fully fund the additional costs, and the Company commits to a plan to complete the demonstration cascade and produce HALEU, the Company may incur material additional costs or losses in future periods that could have an adverse impact on its financial condition and liquidity.