<SEC-DOCUMENT>0001065059-22-000005.txt : 20220324
<SEC-HEADER>0001065059-22-000005.hdr.sgml : 20220324
<ACCEPTANCE-DATETIME>20220203160118
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001065059-22-000005
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20220203

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CENTRUS ENERGY CORP
		CENTRAL INDEX KEY:			0001065059
		STANDARD INDUSTRIAL CLASSIFICATION:	MINING, QUARRYING OF NONMETALLIC MINERALS (NO FUELS) [1400]
		IRS NUMBER:				522107911
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		6901 ROCKLEDGE DR
		STREET 2:		SUITE 800
		CITY:			BETHESDA
		STATE:			MD
		ZIP:			20817
		BUSINESS PHONE:		3015643200

	MAIL ADDRESS:	
		STREET 1:		6901 ROCKLEDGE DR
		STREET 2:		SUITE 800
		CITY:			BETHESDA
		STATE:			MD
		ZIP:			20817

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	USEC INC
		DATE OF NAME CHANGE:	19980629
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
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<title>Document</title></head><body><div id="i09191bdd91564e9695dd5a90651d417d_1"></div><div style="min-height:72pt;width:100%"><div><font><br></font></div></div><div><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:120%">Centrus Energy Corp.</font></div><div><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:120%">6901 Rockledge Drive, Suite 800</font></div><div><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:120%">Bethesda, Maryland 20817</font></div><div><font><br></font></div><div><table style="border-collapse:collapse;display:inline-table;margin-bottom:5pt;vertical-align:text-bottom;width:100.000%"><tr><td style="width:1.0%"></td><td style="width:75.662%"></td><td style="width:0.1%"></td><td style="width:1.0%"></td><td style="width:22.138%"></td><td style="width:0.1%"></td></tr><tr><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:top"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:700;line-height:112%">Philip O. Strawbridge</font></td><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:top"><div><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:700;line-height:112%">(301) 814-7235 </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:112%">cell</font></div></td></tr><tr><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:top"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-style:italic;font-weight:400;line-height:112%">Senior Vice President, Chief Financial Officer,<br>Chief Administrative Officer &#38; Treasurer<br></font></td><td colspan="3" style="padding:0 1pt"></td></tr></table></div><div><font><br></font></div><div style="text-align:center"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">       February 03, 2022</font></div><div><font><br></font></div><div><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:700;line-height:112%;text-decoration:underline">VIA EDGAR</font></div><div><font><br></font></div><div style="text-align:justify"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">Ms. Wei Lu, Staff Accountant</font></div><div style="text-align:justify"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">Mr. Ethan Horowitz, Accounting Branch Chief</font></div><div style="text-align:justify"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">Office of Energy &#38; Transportation</font></div><div style="text-align:justify"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">Division of Corporation Finance</font></div><div style="text-align:justify"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">United States Securities and Exchange Commission</font></div><div style="text-align:justify"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">100 F Street, NE</font></div><div style="text-align:justify"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">Washington, DC 20549</font></div><div><font><br></font></div><div style="text-align:justify"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">RE&#58;      </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-style:italic;font-weight:700;line-height:112%">Centrus Energy Corp.</font></div><div style="text-align:justify;text-indent:36pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-style:italic;font-weight:700;line-height:112%">Form 10-K for the Fiscal Year ended December 31, 2020</font></div><div style="text-align:justify;text-indent:36pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-style:italic;font-weight:700;line-height:112%">Filed March 22, 2021</font></div><div style="text-align:justify;text-indent:36pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-style:italic;font-weight:700;line-height:112%">Form 10-Q for the Nine Months ended September 30, 2021</font></div><div style="text-align:justify;text-indent:36pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-style:italic;font-weight:700;line-height:112%">Filed November 12, 2021</font></div><div style="text-align:justify;text-indent:36pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-style:italic;font-weight:700;line-height:112%">File No. 001-14287</font></div><div><font><br></font></div><div><font><br></font></div><div style="text-align:justify"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">Dear Ms. Lu and Mr. Horowitz&#58;</font></div><div><font><br></font></div><div style="text-align:justify;text-indent:36pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">This letter sets forth the response of Centrus Energy Corp. (the &#8220;Company,&#8221; &#8220;we&#8221; or &#8220;us&#8221;) to the comments of the staff (the &#8220;Staff&#8221;) of the Securities and Exchange Commission (the &#8220;Commission&#8221;) contained in your letter dated January 20, 2022 (the &#8220;Comment Letter&#8221;), regarding the above-referenced filings with the Commission. For the convenience of the Staff, the Staff&#8217;s comment is restated in italics prior to our response to such comment. </font></div><div><font><br></font></div><div style="text-align:justify"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-style:italic;font-weight:400;line-height:112%;text-decoration:underline">Form 10-K for the Fiscal Year ended December 31, 2020</font></div><div><font><br></font></div><div><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-style:italic;font-weight:400;line-height:112%;text-decoration:underline">Management's Discussion and Analysis of Financial Condition and Results of Operations</font></div><div style="text-align:justify"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-style:italic;font-weight:400;line-height:112%;text-decoration:underline">Results of Operations, page 52</font></div><div><font><br></font></div><div><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-style:italic;font-weight:400;line-height:112%">1.The revised disclosure provided in response to comment 1 states that the presentation of non-GAAP measures is useful to investors because it provides a more accurate reflection of management&#8217;s assessment of your ongoing operating performance. Please further revise your disclosure as this language appears to be inconsistent with the prominence requirements per Item 10(e)(1)(i)(A) of Regulation S-K.</font></div><div style="height:72pt;position:relative;width:100%"><div style="bottom:0;position:absolute;width:100%"><div style="text-align:center"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">1</font></div></div></div><hr style="page-break-after:always"><div style="min-height:72pt;width:100%"><div><font><br></font></div></div><div><font><br></font></div><div><font><br></font></div><div><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:700;line-height:112%">RESPONSE&#58; </font></div><div><font><br></font></div><div><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">The Company has revised its proposed disclosure, contained in our letter dated January 20, 2022.  An example of the Company's intended disclosure is set forth below.</font></div><div><font><br></font></div><div><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">The Company measures </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-style:italic;font-weight:400;line-height:112%">Net Income</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%"> and </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-style:italic;font-weight:400;line-height:112%">Net Income per Share</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%"> both on a GAAP basis and on an adjusted basis to exclude deemed dividends allocable to retired preferred stock shares (&#8220;</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-style:italic;font-weight:400;line-height:112%">Adjusted Net Income</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">&#8221; and &#8220;</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-style:italic;font-weight:400;line-height:112%">Adjusted Net Income per Share</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">&#8221;).  We believe </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-style:italic;font-weight:400;line-height:112%">Adjusted Net Income </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">and </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-style:italic;font-weight:400;line-height:112%">Adjusted Net Income per Share</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">, which are non-GAAP financial measures, provide investors with additional understanding of the Company&#8217;s financial performance as well as its strategic financial planning analysis and period-to-period comparability. These metrics are useful to investors because they reflect how management evaluates the Company&#8217;s ongoing operating performance from period-to-period after removing certain transactions and activities that affect comparability of the metrics and are not reflective of the Company&#8217;s core operations.</font></div><div><font><br></font></div><div><font><br></font></div><div><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-style:italic;font-weight:400;line-height:112%;text-decoration:underline">Financial Statements</font></div><div><font><br></font></div><div><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-style:italic;font-weight:400;line-height:112%;text-decoration:underline">Consolidated Statements of Operations and Comprehensive Income, page 76</font></div><div><font><br></font></div><div><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-style:italic;font-weight:400;line-height:112%">2.We note from your response to prior comment 2 that the claim settlement represents consideration paid for the existing &#34;take or pay&#34; provisions under a SWU customer supply contract. Tell us the periods for which the settlement amount recognized relates and quantify any revenue previously recognized for this contract in those periods, including information about amounts invoiced when the customer failed to submit an order meeting its annual purchase obligations. As part of your response, provide us a detailed analysis of your accounting treatment with references to the relevant authoritative guidance.</font></div><div><font><br></font></div><div><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-style:italic;font-weight:400;line-height:103%">In addition, clarify the portion of your response stating that the amount recognized was for the settlement of a breach of a contract as disclosure in your filing states that the claims are related to damages arising from the rejection and breach of a long-term contract.</font></div><div style="padding-left:36pt"><font><br></font></div><div style="text-align:justify"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:700;line-height:112%">RESPONSE&#58;</font></div><div><font><br></font></div><div><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">The Company and the Customer entered into the </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">SWU customer supply contract (&#8220;the Customer Contract&#8221;) </font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">with annual delivery obligations over the period 2016 - 2027. </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%"> The Company initially accounted for the contract under ASC 605 until its adoption of ASC 606 in 2018.  In accordance with ASC 605-10-S99-1, the Company recognized revenue upon delivery of the SWU product and transfer of title to the Customer.  The Customer Contract</font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%"> is a &#8220;take or pay&#8221; contract with specified minimum annual purchase obligations for the Customer ranging from $13 million to $24 million per year.</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">  </font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">That is, the Customer was obligated to pay the Company the minimum amount per the contract irrespective of whether the Customer chose to make the purchase and take delivery of the product.</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">  </font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">In the event the Customer did not meet its annual minimum obligation, the Company was contractually able to invoice the Customer for the shortfall up to the contractual minimum amount.</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">  </font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">The Customer met its minimum purchase obligation for 2016 and 2017 and the Company recognized revenue in the amount of $46.7 million related to the </font></div><div style="height:72pt;position:relative;width:100%"><div style="bottom:0;position:absolute;width:100%"><div style="text-align:center"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">2</font></div></div></div><hr style="page-break-after:always"><div style="min-height:72pt;width:100%"><div><font><br></font></div></div><div><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">deliveries made in those years.</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">  </font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">The contractual minimum amount of the remaining SWU to be delivered over the period 2018 &#8211; 2027 was $165.7 million. </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%"> </font></div><div><font><br></font></div><div><font style="color:#0d0d0d;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">The Customer Contract was an open contract for purposes of the adoption of ASC 606 on January 1, 2018 due to the fact that the Customer was obligated to make the annual minimum purchases through 2027.  </font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">On March 31, 2018, the Customer declared bankruptcy. </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%"> </font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">In bankruptcy, the Customer had the ability to either assume the Customer Contract and continue performance after it emerged from bankruptcy or reject the contract.</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">  </font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">On July 26, 2018, prior to the next annual purchase obligation date, </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">the Customer Contract</font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%"> was rejected.</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">  </font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">This action constituted a breach of the contract and allowed the Company to seek payment for the minimum purchase obligations under the contract.</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">  </font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">The Customer made no further purchases, and the Company made no deliveries under the Customer Contract in 2018 or thereafter, nor were any receivables owed to the Company at the time of its rejection by order of the Bankruptcy Court in July 2018. </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%"> </font></div><div><font><br></font></div><div><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">Rejection of the Customer Contract entitled the Company to file claims for breach of contract with the Bankruptcy Court.</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">  </font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">On October 18, 2018, the Company filed proofs of claim in the Bankruptcy Court related to damages arising from the rejection and breach of the Customer Contract. </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%"> </font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">The damages claimed related to the product the Customer was obligated to purchase under the Customer Contract for the period 2018 &#8211; 2027.</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">  </font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">These damages did not include termination fees, penalties, interest or any other amounts that were incurred outside of the Customer Contract.</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">  </font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">On November 15, 2019, the Customer filed an objection to our claims for damages. </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%"> </font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">The Customer and the Company then engaged in negotiations to resolve the Company&#8217;s claims.</font></div><div><font><br></font></div><div><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">On May 21, 2020, in settlement of the Company&#8217;s claims against the Customer, </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">the Company and the Customer submitted to the Bankruptcy Court that the Company&#8217;s claims would be allowed in the amount of $70 million, which the Bankruptcy Court subsequently approved. The Bankruptcy Court provided for partial recoveries to creditors for allowed unsecured claims against the Customer which resulted in the Company receiving distributions totaling $32.4 million, which represented a portion of the $165.7 million owed by the Customer for the SWU obligations.  The Company was paid $32.4 million on June 30, 2020, and the Company received an additional $0.2 million (as a final adjustment) on December 23, 2020 which brought the total recovery on the claim to $32.6 million.  </font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">During the second quarter and fourth quarter of 2020, the Company recognized revenue of $32.4 million and $0.2 million, respectively,</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%"> specifically within the &#8220;Separative work units&#8221; line since the Customer was a SWU customer.</font></div><div><font><br></font></div><div><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">In accounting for the $32.6 million, the Company considered the Customer&#8217;s purchase shortfall to a contractual minimum to represent unexercised rights that are covered by the guidance in ASC 606-10-55-46 through 55-49. </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%"> </font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">The guidance in ASC 606-10-55-48 indicates that an entity should record revenue related to the unexercised rights in proportion to the pattern of rights exercised by the customer.</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">  </font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">In this case, the Customer did not exercise its obligation (&#8220;option&#8221;) to purchase the remaining goods under the Customer Contract upon rejection of the contract and no future deliveries were expected under the Customer Contract, so revenue should be recognized related to the unexercised rights, assuming an appropriate estimate of the amount the Company would receive could be made.</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">  </font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">ASC 606-10-55-48 refers to the guidance in ASC 606-10-32-11 through 32-13 on constraining estimates of variable consideration in cases where there is significant uncertainty to the amounts that a company will ultimately receive. </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%"> </font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">Given the significant uncertainty around the resolution of the bankruptcy proceedings, no revenue was </font></div><div style="height:72pt;position:relative;width:100%"><div style="bottom:0;position:absolute;width:100%"><div style="text-align:center"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">3</font></div></div></div><hr style="page-break-after:always"><div style="min-height:72pt;width:100%"><div><font><br></font></div></div><div><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">recognized by the Company during the years ended December 31, 2018 and 2019 since it was not deemed probable that a significant reversal in revenue recognized would not occur when the uncertainty was resolved. </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%"> </font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">As indicated above, the Company recorded the $32.4 million for the shortfall in the second quarter of 2020, once it was no longer probable that a significant reversal of revenue would occur. </font></div><div><font><br></font></div><div><font><br></font></div><div><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-style:italic;font-weight:400;line-height:112%;text-decoration:underline">Form 10-Q for the Nine Months ended September 30, 2021</font></div><div><font><br></font></div><div><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-style:italic;font-weight:400;line-height:112%;text-decoration:underline">Financial Statements</font></div><div><font><br></font></div><div><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-style:italic;font-weight:400;line-height:112%;text-decoration:underline">Condensed Consolidated Statements of Operations and Comprehensive Income, page 5</font></div><div><font><br></font></div><div style="padding-left:36pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-style:italic;font-weight:400;line-height:112%">3.Your response to prior comment 3 states that the settlement proceeds represent the contractual consideration of a service contract with the U.S. Department of Energy and are recorded as revenue in accordance with FASB ASC 606. Provide us with a detailed analysis of your accounting treatment with citations to the relevant authoritative guidance. As part of your response, tell us about your accounting for this contract in prior periods, specifically with regard to amounts related to expected reimbursements for costs including pension and postretirement benefits costs you incurred. If any amounts were previously recognized, provide us with information describing and quantifying the amounts recognized by year. In addition, clarify the nature of the settlement of claims referred to in your response.</font></div><div><font><br></font></div><div style="text-align:justify"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:700;line-height:112%">RESPONSE&#58;</font></div><div><font><br></font></div><div><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">The Company formerly leased the Portsmouth</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%"> Gaseous Diffusion Plant</font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%"> (&#8220;Portsmouth GDP&#8221;) from </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">the U.S. Department of Energy (&#8220;DOE&#8221;)</font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">. </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%"> The Company </font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">ceased uranium enrichment operations at the Portsmouth GDP in 2001. </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%"> </font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">From 2001 through 2011, the Company maintained the Portsmouth GDP initially in a state of &#8220;cold standby&#8221; and then later in a state of &#8220;cold shutdown&#8221; under a Cost-Reimbursable contract with DOE </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">(&#8220;the Services Contract&#8221;)</font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%"> </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">in preparation for a DOE decontamination and decommissioning program.  The Services Contract expired by its terms on </font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">March 28, 2011. </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%"> </font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">The settlement proceeds received in September 2021 relate to this contract. </font></div><div><font><br></font></div><div><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">The Company applied the standard, SAB 101 (and its successor SAB 104), to recognize revenue under the Services Contract.</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">  </font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">SAB 101 states that revenue generally is realized or realizable and earned when of the following criteria are met&#59; (1) persuasive evidence of an arrangement exists, (2) delivery has occurred or services have been rendered, (3) the seller&#8217;s price to the buyer is fixed or determinable, and (4) collectability is reasonably assured.</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">  </font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">Based upon this standard, the Company recognized revenue for the Services Contract over the period of 2001 to 2011 based on allowable costs for work performed in accordance with government cost accounting standards (CAS) and the Services Contract. </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%"> </font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">Allowable costs included direct costs such as pension and other allocated costs such as indirect plant and corporate overhead costs. </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%"> </font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">The Company recognized revenue for this contract, which was under the Company&#8217;s U.S. government contracts segment, as costs were incurred and as fees were earned. </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%"> </font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">Amounts representing contract change orders or revised provisional billing rates were accrued and included in revenue when they could be reliably estimated and realization was deemed probable.</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11.5pt;font-weight:400;line-height:112%"> </font></div><div style="height:72pt;position:relative;width:100%"><div style="bottom:0;position:absolute;width:100%"><div style="text-align:center"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">4</font></div></div></div><hr style="page-break-after:always"><div style="min-height:72pt;width:100%"><div><font><br></font></div></div><div><font><br></font></div><div><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">The Company has pension and postretirement benefit plans for its employees.</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">  </font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">The related </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-style:italic;font-weight:400;line-height:112%">net periodic benefit costs</font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%"> for employees working under the Services Contract were recognized in the consolidated statement of operations over the contract period that ended in 2011 and billed as allowable under its U.S. government contracts, including the Services Contract, and recorded as revenue. </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%"> </font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">The Company billed pension and postretirement benefit costs to DOE pursuant to an advance agreement with DOE that addressed issues unique to the Company&#8217;s privatization. </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%"> </font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">In addition, government cost accounting standards recognize that U.S. GAAP allows for the deferred recognition of costs related to unfunded pension and postretirement benefit obligations. That is to say, actuarial gains and losses and prior service costs and credits can be deferred in accumulated other comprehensive income (AOCI) and amortized to net periodic benefit cost over time.</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">  </font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">These deferred costs, which are further assessed below, were not allowable costs to be billed to the DOE until the Portsmouth segment was closed and, therefore, did not meet the criteria for recognizing revenue during the contract period ended 2011 and no revenue was recognized.</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">  </font></div><div><font><br></font></div><div><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">Government Cost Accounting Standards 413 Pension Adjustments for Extraordinary Events (&#8220;CAS 413&#8221;) requires that, when a segment closes, pension costs previously determined must be adjusted to reflect actual pension costs measured at the date of segment closing and payment of the adjustment amount must occur.</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">  </font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">CAS 413 requires adjustment of &#8220;contract prices&#47;costs&#8221; for the full government share amount. Where there is an excess of liabilities over assets, the government&#8217;s share amount represents an underfunding of pension costs attributable to the government contract and, thus, a government payment obligation to the Company.</font></div><div><font><br></font></div><div><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">The cessation of our U.S. government contract activities in Portsmouth segment triggered closing adjustments to our pension and postretirement benefit plan accounting under CAS 413. </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%"> </font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">CAS 413 rendered DOE liable to the Company for the payment of the unfunded pension liability allocable to the employees that worked on U.S. government contracts performed for DOE at the Portsmouth GDP segment.</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">  </font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">As the Services Contract explicitly references these pension costs and the aforementioned cost accounting standards</font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:7.8pt;font-weight:400;line-height:112%;position:relative;top:-4.2pt;vertical-align:baseline">1</font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">, this was an allowable cost to be billed under the Services Contract and are consistent with the other allowable costs under the contract, we contemporaneously determined it should be recognized in revenue when the prevailing revenue recognition criteria were met. </font></div><div><font><br></font></div><div><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">As disclosed in the Company&#8217;s 2011 Form 10-K, the Company, in connection with the cessation of the Services Contract, estimated the total amount of contract closeout costs to be approximately $35 million. </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%"> </font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">These contract closeout costs that were expected to be billed to DOE include DOE&#8217;s share of costs for our defined benefit pension plan, our postretirement health and life benefit plans, DOE&#8217;s share of severance, and other miscellaneous costs such as costs to complete outstanding DOE audits. </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%"> </font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">The Company concluded that there was substantial uncertainty concerning the amount that may be reimbursable from the DOE and, as such, did not recognize any revenue in 2011 as collectability was not reasonably assured (ASC 605-10-S99-1).</font></div><div><font><br></font></div><div><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">In December 2012, the Company further revised its estimate and subsequently invoiced the DOE</font><font style="color:#0d0d0d;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%"> $42.8 million, which represented its share of pension and postretirement benefits costs related to </font></div><div style="border-bottom:1pt solid black;margin-bottom:5pt;margin-top:10pt;width:150pt"></div><div><font style="color:#000000;font-family:'Arial',sans-serif;font-size:7.8pt;font-weight:400;line-height:120%;position:relative;top:-4.2pt;vertical-align:baseline">1</font><font style="color:#000000;font-family:'Arial',sans-serif;font-size:12pt;font-weight:400;line-height:120%"> </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Portsmouth GDP segment was a segment established by the Company under the Cost Accounting standards applicable to government contracts.</font></div><div style="height:72pt;position:relative;width:100%"><div style="bottom:0;position:absolute;width:100%"><div style="text-align:center"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">5</font></div></div></div><hr style="page-break-after:always"><div style="min-height:72pt;width:100%"><div><font><br></font></div></div><div><font style="color:#0d0d0d;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">the transition of Portsmouth site employees to DOE&#8217;s decontamination and decommissioning contractor, as permitted by CAS and based on CAS calculation methodology.  As the Company was unable to reach resolution with the DOE, the Company concluded that it was not appropriate to recognize revenue as collectability was not reasonably assured (ASC 605-10-S99-1).</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">  </font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">We applied the same guidance through 2017 and no revenue was recognized over this period. </font></div><div><font><br></font></div><div><font style="color:#0d0d0d;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">In 2014, the DOE contracting </font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">officer rejected the Company&#8217;s claims for reimbursement of other indirect costs and pension and postretirement plans (PRBs).</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">  </font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">In 2015, the Company filed a claim in the U.S. Federal Claims Court to seek reimbursement of pension and PRB costs. </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%"> </font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">During the litigation, cross motions for summary judgement were filed on issues that materially affected the potential outcome of the case. The Court issued its decisions on the motions in 2018 and encouraged the parties to enter into settlement discussions.</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">  </font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">Active settlement discussions began in 2019 and continued through 2021. </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%"> </font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">In those discussions, the Company provided the U.S. Government extensive data and calculations on the pensions and PRBs (as an example, we provided information to calculate the liability for each person in the pension plan at the Portsmouth GDP).</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">  </font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">The government&#8217;s position throughout those discussions was that it owed nothing, based on </font><font style="color:#0d0d0d;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">its actuarial</font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%"> analysis. </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%"> </font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">The Company&#8217;s actuarial analysis was provided to the government.</font></div><div><font><br></font></div><div><font style="color:#0d0d0d;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">Due to the outstanding pension and PRB claims, the Services Contract was an open contract for purposes of the adoption of ASC 606 effective January 1, 2018.  </font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">The Company applied the guidance in ASC 606-10-32-11 related to variable consideration in assessing the amount of revenue, if any, that should be recognized in relation to the claim. </font><font style="color:#0d0d0d;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%"> No revenue was recognized by the Company in 2018 &#8211; 2020 since it was not probable that a significant reversal in revenue recognized would not occur when the uncertainty was subsequently resolved.  The Company&#8217;s assessment was driven by a multitude of factors including, but not limited to, the uncertainty created by the significant time elapsed since the origination of the claims, the advance agreement for pensions which added complexity to the Company&#8217;s claim, the change of the U.S. administration and DOE leadership over the period, and the assertion by the DOE that there was no amount due based on its actuarial valuation. </font></div><div><font><br></font></div><div><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">In January 2021, the Company and the DOE reached a tentative agreement to resolve the matter, subject to significant conditions. The agreement was subject to approval by the DOE, the DOJ, the Company&#8217;s Board of Directors and the Court. </font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%"> </font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">The previous government administration anticipated that a decision would be made in the second quarter of 2021&#59; however, the senior leadership positions at both the DOE and the DOJ were not appointed until later in the year.</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-style:italic;font-weight:400;line-height:112%">     </font></div><div><font><br></font></div><div><font style="color:#0d0d0d;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">In September 2021, the Company reached a final settlement agreement with the DOE and the DOJ which was approved by the Court in the amount of $43.5 million, at which time it was determined that revenue was no longer constrained, and revenue was thus recognized,</font><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%"> specifically within the &#8220;Technical solutions&#8221; line as DOE is a customer in the technical solutions segment</font><font style="color:#0d0d0d;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">.  The Company received a cash payment of $43.5 million from the DOE and, in accordance with the settlement terms, contributed $33.8 million to the pension plan and $9.7 million to the postretirement plan.  The Company&#8217;s recognition of the settlement amount as revenue was consistent with its disclosure in its 2011 Form 10-K based upon the costs being contract-related expenses that were allowable under the Services Contract, the F</font><font style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">ederal Acquisition Regulations and government cost accounting standards. </font></div><div><font><br></font></div><div style="height:72pt;position:relative;width:100%"><div style="bottom:0;position:absolute;width:100%"><div style="text-align:center"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">6</font></div></div></div><hr style="page-break-after:always"><div style="min-height:72pt;width:100%"><div><font><br></font></div></div><div><font><br></font></div><div style="text-align:center;text-indent:36pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">***********</font></div><div><font><br></font></div><div style="text-indent:36pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">The Company hereby acknowledges that&#58; (i) the Company and its management are responsible for the accuracy and adequacy of the disclosure in the filing&#59; (ii) staff comments or changes to disclosure in response to staff comments do not foreclose the Commission from taking any action with respect to the filing&#59; and (iii) the Company may not assert staff comments as a defense in any proceeding initiated by the Commission or any person under the federal securities laws of the United States.</font></div><div><font><br></font></div><div style="text-indent:36pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">We believe the foregoing should address your comments. If you have any questions about, or would like further information concerning, the response set forth above, please contact the undersigned.  We appreciate the Staff&#8217;s comments and request that the Staff contact the undersigned at (301) 814-7235 or by email at strawbridgepo&#64;centrusenergy.com with any questions or comments regarding this letter.</font></div><div><font><br></font></div><div style="text-indent:216pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">Very truly yours,</font></div><div><font><br></font></div><div style="text-indent:216pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">CENTRUS ENERGY CORP.</font></div><div><font><br></font></div><div style="text-indent:216pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">&#47;s&#47; Philip O. Strawbridge</font></div><div><font><br></font></div><div><font><br></font></div><div><font><br></font></div><div style="text-indent:108pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">                                    By&#58; Philip O. Strawbridge</font></div><div style="text-indent:108pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">                                    Senior Vice President, Chief Financial Officer, </font></div><div style="text-indent:108pt"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:112%">                                    Chief Administrative Officer &#38; Treasurer</font></div><div><font><br></font></div><div><font><br></font></div><div><font><br></font></div><div style="height:72pt;position:relative;width:100%"><div style="bottom:0;position:absolute;width:100%"><div style="text-align:center"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">7</font></div></div></div></body></html>
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