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Discontinued Operations | 12 Months Ended
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Dec. 26, 2021
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued Operations | Discontinued Operations On February 28, 2018, the Company entered into a Stock Purchase Agreement to sell the operations of Kratos Public Safety & Security Solutions, Inc., a Delaware corporation and wholly owned subsidiary of the Company (“PSS”), to Securitas Electronic Security, Inc., a Delaware corporation (“Buyer”). On June 11, 2018, the Company completed the sale of all of the issued and outstanding capital stock of PSS to Buyer for a purchase price of $69 million in cash, subject to a closing net working capital adjustment (the “Transaction”). To date,the Company has received approximately $68.9 million of aggregate net cash proceeds from the Transaction, after taking into account amounts that were paid by the Company pursuant to a negotiated transaction services agreement between the Company and the Buyer, receipt of approximately $7.3 million in net working capital retained by the Company, and associated transaction fees and expenses and including the impact of the final settlement and determination of the closing net working capital adjustment which was settled with the Buyer in the fourth quarter of 2021. Included in the year ended December 26, 2021 is approximately $1.1 million of loss from discontinued operations related to the final working capital settlement. In accordance with ASC 360-10-45-9, Property, Plant, and Equipment (Topic 360) and ASC 205-20-45-3 Presentation of Financial Statements (Topic 205), PSS and its subsidiaries have been reported in discontinued operations in the accompanying consolidated financial statements for all periods presented. The following table presents the results of discontinued operations (in millions):
| Year ended December 26, 2021 |  | Year ended December 27, 2020 |  | Year ended December 29, 2019
Revenue | $ | 0.1 |  |  | $ | — |  |  | $ | 0.3 |
Cost of sales | — |  |  | 0.2 |  |  | 0.9 |
Selling, general and administrative expenses | 2.4 |  |  | 1.0 |  |  | 1.1 |
Other loss | — |  |  | — |  |  | (3.6) |
Income (loss) from discontinued operations before income taxes | (2.3) |  |  | (1.2) |  |  | 1.9 |
Gain on disposal of discontinued operations before income taxes | — |  |  | — |  |  | — |
Total gain (loss) of discontinued operations before income taxes | (2.3) |  |  | (1.2) |  |  | 1.9 |
Income tax (benefit) expense | (0.2) |  |  | (0.3) |  |  | 0.2 |
Income (loss) from discontinued operations | $ | (2.1) |  |  | $ | (0.9) |  |  | $ | 1.7 |
Revenue and operating results for the year ended December 26, 2021 reflect the final settlement of the working capital dispute with the Buyer which resulted in expenses of approximately $1.1 million, and related legal fees as well as performance on the contracts and working capital retained by the Company. Included in the year ended December 29, 2019, is a $3.6 million gain recorded as a result of the release of an indemnification liability following the lapse of the statute of limitations associated with a potential tax liability that was recorded in 2015 as part of the previous sale of our Electronic Products Division. Depreciation expense included in Selling, general and administrative expenses was $0.0 million, $0.0 million and $0.0 million for the years ended December 26, 2021, December 27, 2020, and December 29, 2019 respectively. The following is a summary of the assets and liabilities of discontinued operations as of December 26, 2021 and December 27, 2020 (in millions):
| December 26, 2021 |  | December 27, 2020
Accounts payable | $ | — |  |  | $ | 0.2 |
Accrued expenses | — |  |  | 0.1 |
Other current liabilities | 0.8 |  |  | 2.8 |
Current liabilities of discontinued operations | $ | 0.8 |  |  | $ | 3.1 |
Other long-term liabilities of discontinued operations | $ | 2.5 |  |  | $ | 2.5 |

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 + Details
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