Revenue Recognition (Tables)

9 Months Ended

Sep. 25, 2022

Revenue from Contract with Customer [Abstract]

Schedule of Net Contract Assets (Liabilities)

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

	September 25, 2022		December 26, 2021		Net Change
Contract assets	$	218.5	$	190.8	$	27.7
Contract liabilities	$	48.9	$	58.1	$	(9.2)
Net contract assets	$	169.6	$	132.7	$	36.9

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
	September 25, 2022		September 26, 2021		September 25, 2022		September 26, 2021
Kratos Government Solutions
Fixed price	$	125.1	$	109.8	$	346.3	$	316.4
Cost plus fee	43.3		19.6		112.7		76.2
Time and materials	10.2		9.9		31.0		29.8
Total Kratos Government Solutions	178.6		139.3		490.0		422.4
Unmanned Systems
Fixed price	33.6		41.2		105.8		114.8
Cost plus fee	14.9		19.6		50.6		60.9
Time and materials	1.5		0.5		2.6		1.8
Total Unmanned Systems	50.0		61.3		159.0		177.5
Total Revenues	$	228.6	$	200.6	$	649.0	$	599.9

Revenue by customer was as follows (in millions):

	Three Months Ended				Nine Months Ended
	September 25, 2022		September 26, 2021		September 25, 2022		September 26, 2021
Kratos Government Solutions
U.S. Government (1)	$	114.6	$	86.4	$	308.3	$	270.8
International (2)	39.8		34.9		110.6		102.4
U.S. Commercial and other customers	24.2		18.0		71.1		49.2
Total Kratos Government Solutions	178.6		139.3		490.0		422.4
Unmanned Systems
U.S. Government (1)	43.5		57.3		145.5		161.3
International (2)	5.9		3.6		11.3		15.4
U.S. Commercial and other customers	0.6		0.4		2.2		0.8
Total Unmanned Systems	50.0		61.3		159.0		177.5
Total Revenues	$	228.6	$	200.6	$	649.0	$	599.9

(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.