Segment Reporting

9 Months Ended

Sep. 26, 2021

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

The Company's operations and reportable segments are organized around the nature of the services and products provided to customers. The Company defines its reportable segments based on the way the chief operating decision maker (“CODM”) manages the operations of the Company for purposes of allocating resources and assessing performance.

The GMS operating segment provides support to the U.S. Government and its partners within and outside the United States providing sustainment, training and readiness support and advancing foreign policy objectives. The NSS operating segment provides a wide-ranging portfolio of offerings that support all facets of national security, including intelligence, homeland security and civil government missions.

While the CODM uses a variety of different measures to evaluate the Company’s segments, the primary measures used to evaluate segment performance and allocate resources are revenues and operating income. As a result, interest expense, net and provision for income taxes as recorded on the condensed consolidated statements of operations are not allocated to the Company’s operating segments.

The following table shows information by reportable segment for the periods presented (in thousands):

	Three Months Ended				Nine Months Ended
	September 26,		September 27,		September 26,		September 27,
	2021		2020		2021		2020
Revenues
GMS	$	448,078	$	521,346	$	1,480,982	$	1,486,643
NSS	241,436		144,894		704,297		440,152
Corporate	—		—		—		—
Total revenues	$	689,514	$	666,240	$	2,185,279	$	1,926,795
Operating income (loss)
GMS	$	20,459	$	31,401	$	73,673	$	75,541
NSS	13,091		5,679		33,729		17,770
Corporate	(7,514)		(8,548)		(24,409)		(23,027)
Total operating income	$	26,036	$	28,532	$	82,993	$	70,284
Amortization of intangible assets
GMS	$	4,161	$	4,115	$	12,483	$	12,346
NSS	8,469		3,932		24,993		11,795
Corporate			—		—		—
Total amortization of intangible assets	$	12,630	$	8,047	$	37,476	$	24,141

Under U.S. Government cost accounting standards, indirect costs including depreciation expense are collected in numerous indirect cost pools, which are then collectively allocated to the Company’s reportable segments based on a representative causal or beneficial relationship of the costs in the pool to the costs in the base. While depreciation expense is a component of the allocated costs, the allocation process precludes depreciation expense from being

specifically identified by the Company’s individual reportable segments. For this reason, depreciation expense by reportable segment is not presented separately above.

Asset information by segment is not a key measure of performance used by the CODM and therefore segment assets are not presented.

Less than 10.0% of the Company’s revenues and tangible long-lived assets are generated by or owned by entities outside of the United States. Therefore, additional segment financial information by geographic location is not presented.