Related Party Transactions |
6 Months Ended |
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Jun. 30, 2026 | |
| Related Party Transactions [Abstract] | |
| Related Party Transactions | Related Party Transactions Corporate Allocations The accompanying financial statements for the periods prior to the Spin-off reflected allocations of certain expenses from Honeywell including, but not limited to, legal, accounting, information technology (“IT”), human resources and other infrastructure support. The allocation method was based on the Company’s proportion of total Honeywell revenue in each respective period, relative to the Honeywell expense cost pool. Allocations for management costs and corporate support services provided to the Company totaled $61 million and $115 million for the three and six months ended June 30, 2025, respectively, and such amounts were included within Selling, general and administrative expenses in the Consolidated Statements of Operations. These corporate allocations include stock-based compensation expense allocated to the Company for corporate and shared employees of $2 million and $8 million, and U.S. pension service costs of $0 million and $1 million for the three and six months ended June 30, 2025, respectively. There were no such allocations for the three and six months ended June 30, 2026. Honeywell is not considered an affiliate following the Spin-off. Related Party Sales and Purchases Product sales to affiliates Product and service sales in the Consolidated Statements of Operations include sales to affiliates of $29 million and $45 million for the three and six months ended June 30, 2026, respectively, and $25 million and $38 million for the three and six months ended June 30, 2025, respectively. Certain of these product sales are cash-settled and reflected in the Consolidated Balance Sheets. Accounts receivable – net includes $36 million and $45 million of these transactions as of June 30, 2026 and December 31, 2025, respectively. Purchases from affiliates Purchases made by the Company from its affiliates, including Honeywell (through the Spin-off date), were $5 million and $10 million for the three and six months ended June 30, 2026, respectively, and $5 million and $12 million for the three and six months ended June 30, 2025, respectively. Purchases made by the Company from Honeywell were $4 million and $7 million for the three and six months ended June 30, 2025, respectively. Accounts payable includes $7 million and $2 million as of June 30, 2026 and December 31, 2025, respectively, related to such transactions. In addition to normal recurring purchases, ConverDyn, the Company’s consolidated VIE (refer to Note 13 – Investments for further details), holds accrued liabilities of $73 million and $69 million as of June 30, 2026 and December 31, 2025, respectively, to General Atomics relating to payments owed by ConverDyn for the standby costs of maintaining a uranium conversion facility owned by such affiliate of General Atomics. These payments cannot be paid by ConverDyn until ConverDyn fully pays to the Company the costs of operating the Nuclear Facility. Until repaid, these obligations to the affiliate of General Atomics accrue interest at the U.S. prime rate plus two percent. Product loans In 2024, ConverDyn entered into an arrangement to borrow certain products from a customer of ConverDyn and loan such products to an affiliate of General Atomics until December 31, 2026, in exchange for a fixed fee billed annually. The Consolidated Balance Sheets include Product loans receivable related to uranium ore of approximately $186 million as of June 30, 2026, and approximately $178 million as of December 31, 2025. This results in a net position of $0 million loans payable / receivable related to these arrangements for ConverDyn as of both June 30, 2026, and December 31, 2025. As of June 30, 2026 and December 31, 2025, the Consolidated Balance Sheet includes short-term unbilled Accounts receivable related to the loan fees receivable of approximately $0 million and $7 million, respectively. Cash Management and Net Parent Investment Prior to the Spin-off, Honeywell used a centralized approach for the purpose of cash management and financing of its operations. The Company’s excess cash was transferred to Honeywell daily, and Honeywell funded the Company’s operating and investing activities as needed. The total net effect of the settlement of these intercompany transactions is reflected in the Consolidated Statements of Cash Flows as a financing activity through Net transfers to Parent. Following the Spin-off, the Company no longer participates in Honeywell’s centralized cash management program. Credit Support Following the Spin-off, Honeywell had agreed to provide the Company support through certain parent company performance guarantees that would remain in place during a transition period of up to 24 months and as guarantor of or obligor for certain letters of credit and other credit support instruments that were issued on the Company’s behalf during a transition period of up to 12 months. Effective the second quarter of 2026, the Company no longer requires credit support from Honeywell for letters of credit and other credit support instruments.
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