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Segment Information
6 Months Ended
Jun. 25, 2023
Segment Reporting [Abstract]  
Segment Information Segment Information
 
The Company operates in two reportable segments. The KGS reportable segment is comprised of an aggregation of KGS operating business units, including the Company’s microwave electronics products, space, satellite and cyber, training solutions, C5ISR/modular systems, turbine technologies and defense and rocket support systems operating segments. The US reportable segment consists of the Company’s unmanned aerial, unmanned ground, unmanned seaborne and command, control and communications system business. The KGS and US segments provide products, solutions and services for mission critical national security programs. KGS and US customers primarily include national security related agencies, the U.S. Department of Defense (the “DoD”), intelligence agencies and classified agencies, and to a lesser degree, international government agencies and domestic and international commercial customers.

The Company organizes its reportable segments based on the nature of the products, solutions and services offered. Transactions between segments are generally negotiated and accounted for under terms and conditions similar to other government and commercial contracts. In the following table, total operating income from continuing operations of the reportable business segments is reconciled to the corresponding consolidated amount. The reconciling item Corporate activities includes costs for certain stock-based compensation programs (including stock-based compensation costs for stock options, the employee stock purchase plan and restricted stock units), the effects of items not considered part of management’s evaluation of segment operating performance, merger and acquisition expenses, corporate costs not allocated to the segments, and other miscellaneous corporate activities.

 Revenues, depreciation and amortization, and operating income (loss) generated by the Company’s reportable segments for the three and six month periods ended June 25, 2023 and June 26, 2022 are as follows (in millions): 
 Three Months EndedSix Months Ended
 June 25, 2023June 26, 2022June 25, 2023June 26, 2022
Revenues:   
Kratos Government Solutions
Service revenues$102.2 $77.2 $192.4 $144.0 
Product sales102.6 90.6 196.2 167.4 
Total Kratos Government Solutions$204.8 $167.8 $388.6 $311.4 
Unmanned Systems
Service revenues1.5 1.6 2.9 2.7 
Product sales50.6 54.8 97.2 106.3 
Total Unmanned Systems52.1 56.4 100.1 109.0 
Total revenues$256.9 $224.2 $488.7 $420.4 
Depreciation and amortization:
Kratos Government Solutions$5.9 $5.0 $11.8 $10.1 
Unmanned Systems2.0 1.9 4.0 3.8 
Total depreciation and amortization$7.9 $6.9 $15.8 $13.9 
Operating income (loss):    
Kratos Government Solutions$11.6 $9.5 $19.3 $15.1 
Unmanned Systems1.2 (5.0)0.6 (4.5)
Corporate activities(6.1)(6.4)(12.7)(13.7)
Total operating income (loss)$6.7 $(1.9)$7.2 $(3.1)

The Unmanned Systems operating loss for the three and six months ended June 26, 2022 includes a $5.5 million litigation settlement charge related to the resolution of a dispute with an international customer, for which the contractual arrangement was entered into in March 2011, prior to Kratos’ acquisition of Composite Engineering Inc. (“CEi”).