Revenue Recognition (Tables)

6 Months Ended

Jun. 25, 2023

Revenue from Contract with Customer [Abstract]

Schedule of Net Contract Assets (Liabilities)

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

	June 25, 2023		December 25, 2022		Net Change
Contract assets	$	222.0	$	222.8	$	(0.8)
Contract liabilities	$	73.1	$	62.1	$	11.0
Net contract assets	$	148.9	$	160.7	$	(11.8)

Schedule of Disaggregation of Revenue

The following series of tables presents the Company’s revenue disaggregated by several categories. For the majority of contracts, revenue is recognized over time as work is performed on the contract. Revenue by contract type was as follows (in millions):

	Three Months Ended				Six Months Ended
	June 25, 2023		June 26, 2022		June 25, 2023		June 26, 2022
Kratos Government Solutions
Fixed price	$	132.5	$	119.9	$	259.5	$	221.2
Cost plus fee	59.9		37.1		105.6		69.4
Time and materials	12.4		10.8		23.5		20.8
Total Kratos Government Solutions	204.8		167.8		388.6		311.4
Unmanned Systems
Fixed price	39.0		40.7		75.9		72.2
Cost plus fee	10.5		15.3		18.6		35.7
Time and materials	2.6		0.4		5.6		1.1
Total Unmanned Systems	52.1		56.4		100.1		109.0
Total Revenues	$	256.9	$	224.2	$	488.7	$	420.4

Revenue by customer was as follows (in millions):

	Three Months Ended				Six Months Ended
	June 25, 2023		June 26, 2022		June 25, 2023		June 26, 2022
Kratos Government Solutions
U.S. Government (1)	$	129.5	$	104.2	$	244.0	$	193.7
International (2)	47.9		36.1		92.9		70.8
U.S. Commercial and other customers	27.4		27.5		51.7		46.9
Total Kratos Government Solutions	204.8		167.8		388.6		311.4
Unmanned Systems
U.S. Government (1)	49.1		51.9		94.9		102.0
International (2)	2.4		3.6		4.3		5.4
U.S. Commercial and other customers	0.6		0.9		0.9		1.6
Total Unmanned Systems	52.1		56.4		100.1		109.0
Total Revenues	$	256.9	$	224.2	$	488.7	$	420.4

(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.