Segment Information

3 Months Ended

Mar. 27, 2022

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 business units, including the Company’s microwave electronic products, space and satellite communications, training and cybersecurity, C5ISR/modular systems, turbine technologies and defense and rocket support services operating segments. The US reportable segment consists of the Company’s unmanned aerial, unmanned ground, unmanned seaborne and command, control and communications system business. 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 U.S. Department of Defense (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 from continuing operations of the reportable business segments is reconciled to the corresponding consolidated amount. The reconciling item 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, depreciation and amortization, and operating income generated by the Company’s reportable segments for the three month periods ended March 27, 2022 and March 28, 2021 are as follows (in millions): 

	Three Months Ended
	March 27, 2022		March 28, 2021
Revenues:
Kratos Government Solutions
Service revenues	$	66.8	$	56.1
Product sales	76.8		82.2
Total Kratos Government Solutions	143.6		138.3
Unmanned Systems
Service revenues	1.1		1.2
Product sales	51.5		54.7
Total Unmanned Systems	52.6		55.9
Total revenues	$	196.2	$	194.2
Depreciation and amortization:
Kratos Government Solutions	$	5.1	$	4.4
Unmanned Systems	1.9		1.9
Total depreciation and amortization	$	7.0	$	6.3
Operating income (loss) from continuing operations:
Kratos Government Solutions	$	5.6	$	7.1
Unmanned Systems	0.5		4.2
Corporate activities	(7.3)		(6.4)
Total operating income (loss) from continuing operations	$	(1.2)	$	4.9