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Segment Information
 9 Months Ended
Sep. 30, 2012
Segment Reporting [Abstract]  
Segment Information
Segment Information
 
The Company operates in two principal business segments: Kratos Government Solutions and Public Safety & Security. The Company organizes its business segments based on the nature of the services offered. In the following table, total operating income of the business segments is reconciled to the corresponding consolidated amount. The reconciling item “Unallocated corporate expense, net” includes costs for certain stock-based compensation programs (including stock-based compensation costs for stock options, employee stock purchase plan shares and restricted stock units), the effects of items not considered part of management’s evaluation of segment operating performance, merger and acquisition expenses, corporate costs not allocated to the operating segments, and other miscellaneous corporate activities. Transactions between segments are generally negotiated and accounted for under terms and conditions similar to other government and commercial contracts.
 
Revenues, operating income, and assets generated or held by the Company’s current reporting segments for the three and nine months ended September 25, 2011 and September 30, 2012 are as follows (in millions):
 
 
Three Months Ended
 
Nine Months Ended
 
September 25,
2011
 
September 30,
2012
 
September 25,
2011
 
September 30,
2012
Revenues:
 

 
 

 
 

 
 

Kratos Government Solutions
$
174.2

 
$
223.5

 
$
416.9

 
$
568.2

Public Safety & Security
32.4

 
52.8

 
83.6

 
137.4

Total revenues
$
206.6

 
$
276.3

 
$
500.5

 
$
705.6

Operating income:
 

 
 

 
 

 
 

Kratos Government Solutions
$
10.5

 
$
14.0

 
$
26.8

 
$
32.4

Public Safety & Security
3.7

 
3.3

 
6.6

 
7.3

Unallocated corporate expense, net
(4.5
)
 
(3.2
)
 
(13.6
)
 
(9.1
)
Total operating income
$
9.7

 
$
14.1

 
$
19.8

 
$
30.6

 
 
As of
 
As of
 
December 25,
2011
 
September 30,
2012
Assets:
 

 
 

Kratos Government Solutions
$
1,028.8

 
$
1,187.8

Public Safety & Security
88.6

 
127.7

Discontinued operations
12.2

 
6.8

Corporate activities
86.4

 
50.6

Total assets
$
1,216.0

 
$
1,372.9



The increase in the assets in the KGS and PSS segments are primarily attributable to the acquisitions of CEI on July 2, 2012 and the Critical Infrastructure Business on December 30, 2011.