XML 52 R28.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Organization and Summary of Significant Accounting Policies (Tables) | 12 Months Ended
--- | ---
Dec. 29, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Schedule of Net Contract Assets (Liabilities) | Net contract assets and liabilities are as follows (in millions):
| December 29, 2019 |  | December 30, 2018 |  | Net Change
Contract assets | $ | 179.4 |  |  | $ | 172.8 |  |  | $ | 6.6 |
Contract liabilities | $ | 34.3 |  |  | $ | 37.0 |  |  | $ | (2.7 | )
Net contract assets | $ | 145.1 |  |  | $ | 135.8 |  |  | $ | 9.3 |
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):
| Year Ended December 29, 2019 |  | Year Ended December 30, 2018
Kratos Government Solutions |  |  |
Fixed price | $ | 469.4 |  |  | $ | 424.9 |
Cost plus fee | 54.3 |  |  | 32.6 |
Time and materials | 32.4 |  |  | 27.6 |
Total Kratos Government Solutions | 556.1 |  |  | 485.1 |
Unmanned Systems |  |  |
Fixed price | 126.2 |  |  | 104.8 |
Cost plus fee | 33.8 |  |  | 26.5 |
Time and materials | 1.4 |  |  | 1.6 |
Total Unmanned Systems | 161.4 |  |  | 132.9 |
Total Revenues | $ | 717.5 |  |  | $ | 618.0 |
Revenue by customer was as follows (in millions):
| Year Ended December 29, 2019 |  | Year Ended December 30, 2018
Kratos Government Solutions |  |  |
U.S. Government (1) | $ | 368.6 |  |  | $ | 333.5 |
International (2) | 111.4 |  |  | 96.0 |
U.S. Commercial and other customers | 76.1 |  |  | 55.6 |
Total Kratos Government Solutions | 556.1 |  |  | 485.1 |
Unmanned Systems |  |  |
U.S. Government (1) | 138.8 |  |  | 113.5 |
International (2) | 21.1 |  |  | 18.3 |
U.S. Commercial and other customers | 1.5 |  |  | 1.1 |
Total Unmanned Systems | 161.4 |  |  | 132.9 |
Total Revenues | $ | 717.5 |  |  | $ | 618.0 |
(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.
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The following table shows the amounts recognized in the consolidated financial statements for stock-based compensation expense related to stock options, stock awards and stock offered under the Company’s employee stock purchase plan (in millions, except per share amounts).
| Year ended December 29, 2019 |  | Year ended December 30, 2018 |  | Year ended December 31, 2017
Selling, general and administrative expenses | $ | 11.0 |  |  | $ | 7.2 |  |  | $ | 7.8 |
Total cost of employee stock-based compensation included in operating income (loss) from continuing operations | $ | 11.0 |  |  | $ | 7.2 |  |  | $ | 7.8 |
Schedule of Valuation and Qualifying Accounts Disclosure | The following table outlines the balance of the Company’s allowance for doubtful accounts for 2019, 2018 and 2017. The table identifies the additional provisions each year as well as the write-offs that utilized the allowance (in millions).
Allowance for Doubtful Accounts | Balance at Beginning of Year |  | Provisions |  | Write-offs/Recoveries |  | Balance at End of Year
Year ended December 31, 2017 | $ | 1.5 |  |  | $ | — |  |  | $ | (1.0 | ) |  | $ | 0.5 |
Year ended December 30, 2018 | $ | 0.5 |  |  | $ | 1.8 |  |  | $ | — |  |  | $ | 2.3 |
Year ended December 29, 2019 | $ | 2.3 |  |  | $ | (0.2 | ) |  | $ | (0.2 | ) |  | $ | 1.9 |
Property, Plant and Equipment | Assets are depreciated predominately using the straight-line method, with the following lives:
| Years
Buildings and improvements | 15 – 39
Machinery and equipment | 3 – 10
Computer equipment and software | 1 – 10
Vehicles, furniture, and office equipment | 5
Leasehold improvements | Shorter of useful life or length of lease
Property, plant and equipment, net (in millions)
| December 29, 2019 |  | December 30, 2018
Finance lease right of use assets | $ | 39.6 |  |  | $ | — |
Land and buildings | $ | 12.2 |  |  | $ | 11.9 |
Computer equipment and software | 32.7 |  |  | 28.3 |
Machinery and equipment | 78.7 |  |  | 56.8 |
Furniture and office equipment | 7.1 |  |  | 6.3 |
Leasehold improvements | 12.3 |  |  | 10.9 |
Construction in progress | 16.0 |  |  | 21.5 |
Property and equipment | 198.6 |  |  | 135.7 |
Accumulated depreciation and amortization | (81.7 | ) |  | (68.6 | )
Total property and equipment, net | $ | 116.9 |  |  | $ | 67.1 |
Schedule of Interest Expense, Net | Interest expense, net is summarized in the following table (in millions):
| Year ended December 29, 2019 |  | Year ended December 30, 2018 |  | Year ended December 31, 2017
Interest expense incurred primarily on the Senior Secured Notes | $ | (23.5 | ) |  | $ | (21.6 | ) |  | $ | (29.1 | )
Miscellaneous interest income | 1.9 |  |  | 0.8 |  |  | 0.5 |
Interest expense, net | $ | (21.6 | ) |  | $ | (20.8 | ) |  | $ | (28.6 | )

X
- Definition Schedule of Interest Expense, Net [Table Text Block] + References No definition available. + Details
Name: | ktos_ScheduleOfInterestExpenseNetTableTextBlock
Namespace Prefix: | ktos_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of allowance for credit loss on financing receivable. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 11B -URI http://asc.fasb.org/extlink&oid=118936363&loc=SL6953423-111524 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 20 -Section 50 -Paragraph 13 -URI http://asc.fasb.org/extlink&oid=119407570&loc=SL82919249-210447 + Details
Name: | us-gaap_AllowanceForCreditLossesOnFinancingReceivablesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of contract balances and changes in contract balances. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=118956577&loc=SL49130551-203045 + Details
Name: | us-gaap_ContractWithCustomerAssetAndLiabilityTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of disaggregation of revenue into categories depicting how nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factor. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=118956577&loc=SL49130545-203045 + Details
Name: | us-gaap_DisaggregationOfRevenueTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_OrganizationConsolidationAndPresentationOfFinancialStatementsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, balances by class of assets, depreciation and depletion expense and method used, including composite depreciation, and accumulated deprecation. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(13)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6391035&loc=d3e2868-110229 + Details
Name: | us-gaap_PropertyPlantAndEquipmentTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of allocation of amount expensed and capitalized for award under share-based payment arrangement to statement of income or comprehensive income and statement of financial position. Includes, but is not limited to, corresponding line item in financial statement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(1) -URI http://asc.fasb.org/extlink&oid=116856206&loc=d3e5070-113901 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 14.F) -URI http://asc.fasb.org/extlink&oid=115993241&loc=d3e301413-122809 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=116856206&loc=d3e5047-113901 + Details
Name: | us-gaap_ScheduleOfEmployeeServiceShareBasedCompensationAllocationOfRecognizedPeriodCostsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration