Segment Information

3 Months Ended

Mar. 30, 2014

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company operates in two principal reportable business segments: Kratos Government Solutions ("KGS") and Public Safety & Security ("PSS"). The Company organizes its reportable business segments based on the nature of the services offered.

Revenues, depreciation and amortization, and operating income generated by the Company’s current reportable segments for the three month periods ended March 31, 2013 and March 30, 2014 are as follows (in millions):

	Three Months Ended
	March 31, 2013			March 30, 2014
Revenues:
Kratos Government Solutions
Service revenues	$	64.9		$	51.7
Product sales	137.3			99.5
Total Kratos Government Solutions	202.2			151.2
Public Safety & Security
Service revenues	50.6			48.9
Product sales	—			—
Total Public Safety & Security	50.6			48.9
Total revenues	$	252.8		$	200.1
Depreciation & amortization:
Kratos Government Solutions	$	13.2		$	9.1
Public Safety & Security	1.0			0.5
Total depreciation and amortization	$	14.2		$	9.6
Operating income:
Kratos Government Solutions	$	12.2		$	4.1
Public Safety & Security	1.2			1.0
Unallocated corporate expense, net	(1.9		)	(1.8		)
Total operating income	$	11.5		$	3.3

Total operating income of the reportable business segments is reconciled to the corresponding consolidated amount. The reconciling item “Unallocated corporate expense, net” includes costs for certain stock-based compensation programs, 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.