Revenue Recognition (Tables)

9 Months Ended

Sep. 27, 2020

Revenue from Contract with Customer [Abstract]

Schedule of net contract assets (liabilities)

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

	September 27, 2020		December 29, 2019		Net Change
Contract assets	$	192.7	$	179.4	$	13.3
Contract liabilities	$	36.3	$	34.3	$	2.0
Net contract assets	$	156.4	$	145.1	$	11.3

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				Nine Months Ended
	September 27, 2020		September 29, 2019		September 27, 2020		September 29, 2019
Kratos Government Solutions
Fixed price	$	113.3	$	114.6	$	315.9	$	346.2
Cost plus fee	27.7		15.6		62.9		39.1
Time and materials	7.5		8.2		25.0		24.0
Total Kratos Government Solutions	148.5		138.4		403.8		409.3
Unmanned Systems
Fixed price	39.6		38.9		95.5		100.1
Cost plus fee	12.9		6.6		39.8		22.1
Time and materials	1.0		0.2		2.2		0.9
Total Unmanned Systems	53.5		45.7		137.5		123.1
Total Revenues	$	202.0	$	184.1	$	541.3	$	532.4

Revenue by customer was as follows (in millions):

	Three Months Ended				Nine Months Ended
	September 27, 2020		September 29, 2019		September 27, 2020		September 29, 2019
Kratos Government Solutions
U.S. Government (1)	$	98.7	$	89.1	$	273.4	$	272.2
International (2)	34.5		29.6		87.4		82.9
U.S. Commercial and other customers	15.3		19.7		43.0		54.2
Total Kratos Government Solutions	148.5		138.4		403.8		409.3
Unmanned Systems
U.S. Government (1)	46.6		37.1		125.4		104.8
International (2)	6.5		8.3		11.4		17.3
U.S. Commercial and other customers	0.4		0.3		0.7		1.0
Total Unmanned Systems	53.5		45.7		137.5		123.1
Total Revenues	$	202.0	$	184.1	$	541.3	$	532.4

(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.