Revenue Recognition (Tables)

9 Months Ended

Oct. 01, 2023

Revenue from Contract with Customer [Abstract]

Schedule of Net Contract Assets (Liabilities)

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

	October 1, 2023		December 25, 2022		Net Change
Contract assets	$	223.7	$	222.8	$	0.9
Contract liabilities	$	79.4	$	62.1	$	17.3
Net contract assets	$	144.3	$	160.7	$	(16.4)

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				Nine Months Ended
	October 1, 2023		September 25, 2022		October 1, 2023		September 25, 2022
Kratos Government Solutions
Fixed price	$	155.2	$	125.1	$	414.7	$	346.3
Cost plus fee	49.5		43.3		155.1		112.7
Time and materials	13.2		10.2		36.7		31.0
Total Kratos Government Solutions	217.9		178.6		606.5		490.0
Unmanned Systems
Fixed price	42.4		33.6		118.3		105.8
Cost plus fee	11.4		14.9		30.0		50.6
Time and materials	2.9		1.5		8.5		2.6
Total Unmanned Systems	56.7		50.0		156.8		159.0
Total Revenues	$	274.6	$	228.6	$	763.3	$	649.0

Revenue by customer was as follows (in millions):

	Three Months Ended				Nine Months Ended
	October 1, 2023		September 25, 2022		October 1, 2023		September 25, 2022
Kratos Government Solutions
U.S. Government (1)	$	132.1	$	114.6	$	376.1	$	308.3
International (2)	52.2		39.8		145.1		110.6
U.S. Commercial and other customers	33.6		24.2		85.3		71.1
Total Kratos Government Solutions	217.9		178.6		606.5		490.0
Unmanned Systems
U.S. Government (1)	53.4		43.5		148.3		145.5
International (2)	2.1		5.9		6.4		11.3
U.S. Commercial and other customers	1.2		0.6		2.1		2.2
Total Unmanned Systems	56.7		50.0		156.8		159.0
Total Revenues	$	274.6	$	228.6	$	763.3	$	649.0

(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.