Revenue Recognition (Tables)

9 Months Ended

Sep. 30, 2018

Revenue from Contract with Customer [Abstract]

Schedule of net contract assets (liabilities)

Net contract assets and liabilities are as follows (in millions):



	September 30, 2018		January 1, 2018		Net Change
Contract assets	$	166.1	$	139.4	$	26.7
Contract liabilities	$	42.8	$	46.8	$	(4.0	)
Net contract assets	$	123.3	$	92.6	$	30.7

Schedule of disaggregation of revenue

The following series of tables presents the Company’s revenue disaggregated by several categories. For the majority of contracts, the customer obtains control or receives benefits as work is performed on the contract. Revenue by contract type was as follows (in millions):



	Three Months Ended September 30, 2018		Nine Months Ended September 30, 2018
Kratos Government Solutions
Fixed price	$	108.5	$	311.8
Cost plus fee	10.3		24.7
Time and materials	7.3		20.4
Total Kratos Government Solutions	126.1		356.9
Unmanned Systems
Fixed price	25.9		76.9
Cost plus fee	7.1		18.5
Time and materials	0.3		1.3
Total Unmanned Systems	33.3		96.7
Total Revenues	$	159.4	$	453.6

Revenue by customer was as follows (in millions):



	Three Months Ended September 30, 2018		Nine Months Ended September 30, 2018
Kratos Government Solutions
U.S. Government ⁽¹⁾	$	90.8	$	245.3
International ⁽²⁾	22.3		66.7
U.S. Commercial and other customers	13.0		44.9
Total Kratos Government Solutions	126.1		356.9
Unmanned Systems
U.S. Government ⁽¹⁾	30.0		83.0
International ⁽²⁾	2.7		13.0
U.S. Commercial and other customers	0.6		0.7
Total Unmanned Systems	33.3		96.7
Total Revenues	$	159.4	$	453.6

⁽¹⁾ Sales to the U.S. Government include sales from contracts for which the Company is the prime contractor, as well as those for which the Company is a subcontractor and the ultimate customer is the U.S. Government. Each of the Company’s segments derives substantial revenue from the U.S. Government. These sales include foreign military sales contracted through the U.S. Government.

⁽²⁾International sales include sales from contracts for which the Company is the prime contractor, as well as those for which the Company is a subcontractor and the ultimate customer is an international customer. These sales include direct sales with governments outside the U.S. and commercial sales with customers outside the U.S.