Segment Information (Tables)

12 Months Ended

Dec. 29, 2024

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

The tables below provide information about the Company’s reportable segments. In these tables total segment operating income (loss) of the reportable business segments is reconciled to the corresponding consolidated amount. “Unallocated amounts” includes costs for merger and acquisition expenses, stock-based compensation expenses, interest expense (net), and other income (expense) items not considered part of management’s evaluation of segment operating income (loss). See footnote 1(e) for segment revenues disaggregated by contract type, customer and geographic region. The summary operating results for the Company’s reportable segments for the years ended December 29, 2024, December 31, 2023, and December 25, 2022, are as follows (in millions):

Year Ended December 29, 2024	Kratos
	Government		Unmanned
	Solutions		Systems		Totals
Service revenues	$	416.3	$	7.1	$	423.4
Product sales	449.5		263.4		712.9
Total revenues	865.8		270.5		1,136.3
Cost of service revenue	304.7		5.3		310.0
Cost of product sales	322.3		216.8		539.1
Total cost of sales	627.0		222.1		849.1
Selling, general & administrative expenses	142.9		41.3		184.2
Research & development expenses	36.1		4.2		40.3
Restructuring expenses and other	3.2		—		3.2
Total segment operating income	56.6		2.9		59.5
Reconciliation of segment operating income
Unallocated amounts:
Merger and acquisition related expenses					(0.7)
Stock compensation expense					(29.8)
Interest expense, (net)					(3.0)
Other income (expense), net					0.5
Income before income taxes					$	26.5

Revenues from foreign customers were approximately $226.6 million or 20% of total revenue for the year ended December 29, 2024. Revenues from any one foreign country did not exceed 10% of total revenues. Assets of foreign subsidiaries in the KGS segment were $223.2 million as of December 29, 2024. Assets from any one foreign country did not exceed 10% of total assets.

Year Ended December 31, 2023	Kratos
	Government		Unmanned
	Solutions		Systems		Totals
Service revenues	$	395.9	$	6.7	$	402.6
Product sales	429.0		205.5		634.5
Total revenues	824.9		212.2		1,037.1
Cost of service revenue	298.3		4.9		303.2
Cost of product sales	301.9		163.4		465.3
Total cost of sales	600.2		168.3		768.5
Selling, general & administrative expenses	135.8		36.6		172.4
Research & development expenses	35.3		3.1		38.4
Restructuring expenses and other	0.9		—		0.9
Total segment operating income	52.7		4.2		56.9
Reconciliation of segment operating income
Unallocated amounts:
Merger and acquisition related expenses					(0.4)
Stock compensation expense					(25.4)
Interest expense (net)					(20.5)
Other income (expense), net					0.5
Income before income taxes					$	11.1

Year Ended December 25, 2022	Kratos
	Government		Unmanned
	Solutions		Systems		Totals
Service revenues	$	320.0	$	5.2	$	325.2
Product sales	356.6		216.5		573.1
Total revenues	676.6		221.7		898.3
Cost of service revenue	235.2		3.8		239.0
Cost of product sales	260.0		173.3		433.3
Total cost of sales	495.2		177.1		672.3
Selling, general & administrative expenses	121.1		41.0		162.1
Research & development expenses	32.2		6.4		38.6
Restructuring expenses and other	0.9		—		0.9
Total segment operating income (loss)	27.2		(2.8)		24.4
Reconciliation of segment operating income (loss)
Unallocated amounts:
Merger and acquisition related expenses					(0.7)
Stock compensation expense					(26.3)
Interest expense (net)					(17.7)
Loss on extinguishment of debt					(13.0)
Other income (expense), net					0.6
Loss before income taxes					$	(32.7)

Revenues from foreign customers were approximately $173.1 million or 19% of total revenue for the year ended December 25, 2022. Revenues from any one foreign country did not exceed 10% of total revenues. Assets of foreign subsidiaries in the KGS segment were $178.3 million as of December 25, 2022. Assets from any one foreign country did not exceed 10% of total assets.

(b)    Capital Expenditures (in millions):

	Year Ended
	December 29, 2024		December 31, 2023		December 25, 2022
Kratos Government Solutions	$	30.5	$	26.9	$	21.0
Unmanned Systems	27.3		24.9		24.2
Total reportable segment capital expenditures	57.8		51.8		45.2
Corporate capital expenditures	0.4		0.6		0.2
Total capital expenditures	$	58.2	$	52.4	$	45.4

(c)     Depreciation and Amortization (in millions):

	Year Ended
	December 29, 2024		December 31, 2023		December 25, 2022
Kratos Government Solutions	$	27.1	$	24.1	$	22.7
Unmanned Systems	13.2		9.1		7.8
Total depreciation and amortization	$	40.3	$	33.2	$	30.5

Reportable Segment Assets are as follows (in millions):

	December 29, 2024		December 31, 2023
Kratos Government Solutions	$	1,250.4	$	1,190.2
Unmanned Systems	385.7		378.6
Total reportable segment assets	1,636.1		1,568.8
Corporate assets(1)	314.8		63.7
Total assets	$	1,950.9	$	1,632.5

(1)Corporate assets primarily include cash and cash equivalents, deferred income tax assets, and property, plant and equipment used in our corporate operations.