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Segment Information | 12 Months Ended
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Dec. 30, 2018
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 segments, including DRSS, ME, TTS, and MS. 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 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 (loss) from continuing operations of the reportable business segments is reconciled to the corresponding consolidated amount. The reconciling item “unallocated corporate expense, net” includes costs for certain stock-based compensation programs (including stock-based compensation costs for stock options, 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. As discussed in “Discontinued Operations” in Note 8 of these notes to consolidated financial statements, the Company began reporting the PSS business as discontinued operations effective in the first quarter of fiscal 2018. Prior to the decision to sell the PSS business, the Company reported their financial results in a separate PSS reportable segment. As certain overhead type costs previously allocated to the PSS business were not allocable to discontinued operations, prior period corporate costs have been reallocated amongst the continuing reportable segments. Revenues, operating income (loss) and assets disclosed below provided by the Company’s reportable segments for the years ended December 30, 2018, December 31, 2017, and December 25, 2016, are as follows (in millions):
| 2018 |  | 2017 |  | 2016
Revenues: |  |  |  |  |
Kratos Government Solutions |  |  |  |  |
Service revenues | $ | 200.7 |  |  | $ | 197.8 |  |  | $ | 221.3 |
Product sales | 284.4 |  |  | 283.8 |  |  | 244.8 |
Total Kratos Government Solutions | 485.1 |  |  | 481.6 |  |  | 466.1 |
Unmanned Systems |  |  |  |  |
Service revenues | — |  |  | — |  |  | — |
Product sales | 132.9 |  |  | 121.7 |  |  | 75.8 |
Total Unmanned Systems | 132.9 |  |  | 121.7 |  |  | 75.8 |
Total revenues | $ | 618.0 |  |  | $ | 603.3 |  |  | $ | 541.9 |
Depreciation and amortization: |  |  |  |  |
Kratos Government Solutions | $ | 13.2 |  |  | $ | 14.4 |  |  | $ | 15.0 |
Unmanned Systems | 4.7 |  |  | 7.8 |  |  | 7.5 |
Total depreciation and amortization | $ | 17.9 |  |  | $ | 22.2 |  |  | $ | 22.5 |
Operating income (loss) from continuing operations: |  |  |  |  |
Kratos Government Solutions | $ | 35.5 |  |  | $ | (0.1 | ) |  | $ | 15.5 |
Unmanned Systems | 5.1 |  |  | (3.6 | ) |  | (28.3 | )
Corporate activities | (10.1 | ) |  | (8.3 | ) |  | (5.2 | )
Total operating income (loss) from continuing operations | $ | 30.5 |  |  | $ | (12.0 | ) |  | $ | (18.0 | )
Revenues from foreign customers were approximately $114.3 million or 19%, $84.7 million or 14% and $80.1 million or 15% of total revenue for the years ended December 30, 2018, December 31, 2017, and December 25, 2016, respectively. Included in the 2016 operating losses for the US reportable segment is an $18.7 million loss accrual recorded on the Air Force Research Laboratory (“AFRL”) Low-Cost Attritable Strike UAS Demonstration (“LCASD”) cost share contract awarded in July 2016. Included in the 2017 operating loss for the KGS reportable segment is a $24.2 million impairment of the carrying value of the goodwill of the DRSS business within the KGS segment. Included in the 2016 operating income for the KGS reportable segment is a $9.2 million charge that was recorded in the Company’s MS business as a result of the closure of one of its manufacturing facilities, and the exit from certain lower margin product business lines. Reportable segment assets are as follows (in millions):
| December 30, 2018 |  | December 31, 2017 |  | December 25, 2016
Assets: |  |  |  |  |
Kratos Government Solutions | $ | 602.8 |  |  | $ | 597.9 |  |  | $ | 609.8 |
Unmanned Systems | 220.9 |  |  | 201.9 |  |  | 172.1 |
Discontinued operations | 8.3 |  |  | 97.4 |  |  | 92.0 |
Corporate activities | 178.1 |  |  | 126.8 |  |  | 74.7 |
Total assets | $ | 1,010.1 |  |  | $ | 1,024.0 |  |  | $ | 948.6 |
Assets of foreign subsidiaries in the KGS segment were $126.7 million, $116.7 million and $113.7 million as of December 30, 2018, December 31, 2017 and December 25, 2016, respectively.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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