Segment Information

12 Months Ended

Dec. 26, 2021

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company operates in two reportable segments. The KGS reportable segment is comprised of an aggregation of KGS operating segments, including DRSS, ME, ST&C, MS, and KTT. The US reportable segment consists of the Company’s unmanned aerial, unmanned ground, unmanned seaborne and command, control and communications system products. The KGS and US segments provide products, solutions and services for mission critical national security programs. KGS and US customers primarily include national security related agencies, the DoD, intelligence agencies and classified agencies, and to a lesser degree, international government agencies and domestic and international commercial customers.

The Company organizes its reportable segments based on the nature of the products, solutions and services offered. Transactions between segments are generally negotiated and accounted for under terms and conditions similar to other government and commercial contracts. In the following table total operating income (loss) from continuing operations of the reportable business segments is reconciled to the corresponding consolidated amount. “Corporate activities” includes costs for certain stock-based compensation programs (including stock-based compensation costs for stock options, employee stock purchase plan 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 segments, and other miscellaneous corporate activities.

Revenues, operating income (loss) and assets disclosed below provided by the Company’s reportable segments for the years ended December 26, 2021, December 27, 2020, and December 29, 2019, are as follows (in millions):

	2021		2020		2019
Revenues:
Kratos Government Solutions
Service revenues	$	214.5	$	248.7	$	272.6
Product sales	365.1		312.0		283.5
Total Kratos Government Solutions	579.6		560.7		556.1
Unmanned Systems
Service revenues	4.9		—		—
Product sales	227.0		187.0		161.4
Total Unmanned Systems	231.9		187.0		161.4
Total revenues	$	811.5	$	747.7	$	717.5
Depreciation and amortization:
Kratos Government Solutions	$	17.4	$	17.9	$	18.2
Unmanned Systems	8.3		6.7		5.2
Total depreciation and amortization	$	25.7	$	24.6	$	23.4
Operating income:
Kratos Government Solutions	$	42.3	$	43.6	$	45.2
Unmanned Systems	13.2		8.7		6.1
Corporate activities	(27.6)		(23.0)		(13.3)
Total operating income	$	27.9	$	29.3	$	38.0

Revenues from foreign customers were approximately $169.8 million or 21%, $139.5 million or 19% and $132.5 million or 18% of total revenue for the years ended December 26, 2021, December 27, 2020, and December 29, 2019, respectively.

    Reportable segment assets are as follows (in millions):

	December 26, 2021		December 27, 2020		December 29, 2019
Assets:
Kratos Government Solutions	$	907.6	$	877.2	$	777.6
Unmanned Systems	327.1		292.4		246.3
Discontinued operations	—		—		3.3
Corporate activities	354.8		393.2		158.8
Total assets	$	1,589.5	$	1,562.8	$	1,186.0

Assets of foreign subsidiaries in the KGS segment were $166.2 million, $148.2 million and $124.7 million as of December 26, 2021, December 27, 2020 and December 29, 2019, respectively.