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Significant Customers
12 Months Ended
Dec. 30, 2012
Segment Reporting [Abstract]  
Significant Customers
Significant Customers
 
Revenue from the U.S. Government (which includes Foreign Military Sales) includes revenue from contracts for which Kratos is the prime contractor as well as those for which the Company is a subcontractor and the ultimate customer is the U.S. Government. The KGS segment has substantial revenue from the U.S. Government. Sales to the U.S. Government amounted to approximately $354.0 million, $534.5 million, and $627.8 million or 87%, 75%, and 65%, of total revenue for the years ended December 26, 2010, December 25, 2011, and December 30, 2012, respectively. 

The U.S. Government continues to focus on developing and implementing spending, tax, and other initiatives to reduce the deficit, create jobs, and stimulate the economy. Although defense spending is expected to remain a national priority within future federal budgets, the Budget Control Act of 2011 (“Budget Control Act”) committed the U.S. Government to reduce the federal deficit over the next ten years. Under the Budget Control Act, the Bi-Partisan Congressional Joint Select Committee on Deficit Reduction (“the Joint Committee”) was responsible for identifying $1.2 to $1.5 trillion in deficit reductions by November 30, 2011. The Joint Committee was unable to identify the reductions by this deadline and thereby triggered a provision of the Budget Control Act called “sequestration,” which requires very substantial automatic spending cuts that will start in 2013 and be split between defense and non-defense programs and continue over a nine-year period. The Congressional budget process to finalize FY 2013 defense spending has been marked by continued uncertainty and significant debate and increased, as of December 30, 2012, the possibility of sequestration occurring. There continues to be uncertainty in how sequestration would be implemented and there are many variables in how the law could be applied that make it difficult to determine the specific impacts. Any automatic reductions in national defense programs could impact the Company's significant customers.