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Segment Information (Tables) | 12 Months Ended
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Dec. 29, 2024
Segment Reporting [Abstract] |
Schedule of Segment Reporting Information, by Segment | The tables below provide information about the Company’s reportable segments. In these tables total segment operating income (loss) of the reportable business segments is reconciled to the corresponding consolidated amount. “Unallocated amounts” includes costs for merger and acquisition expenses, stock-based compensation expenses, interest expense (net), and other income (expense) items not considered part of management’s evaluation of segment operating income (loss). See footnote 1(e) for segment revenues disaggregated by contract type, customer and geographic region. The summary operating results for the Company’s reportable segments for the years ended December 29, 2024, December 31, 2023, and December 25, 2022, are as follows (in millions):
Year Ended December 29, 2024 | Kratos |  |  |  |
| Government |  | Unmanned |  |
| Solutions |  | Systems |  | Totals
Service revenues | $ | 416.3 |  |  | $ | 7.1 |  |  | $ | 423.4 |
Product sales | 449.5 |  |  | 263.4 |  |  | 712.9 |
Total revenues | 865.8 |  |  | 270.5 |  |  | 1,136.3 |
Cost of service revenue | 304.7 |  |  | 5.3 |  |  | 310.0 |
Cost of product sales | 322.3 |  |  | 216.8 |  |  | 539.1 |
Total cost of sales | 627.0 |  |  | 222.1 |  |  | 849.1 |
Selling, general & administrative expenses | 142.9 |  |  | 41.3 |  |  | 184.2 |
Research & development expenses | 36.1 |  |  | 4.2 |  |  | 40.3 |
Restructuring expenses and other | 3.2 |  |  | — |  |  | 3.2 |
Total segment operating income | 56.6 |  |  | 2.9 |  |  | 59.5 |
Reconciliation of segment operating income |  |  |  |  |
Unallocated amounts: |  |  |  |  |
Merger and acquisition related expenses |  |  |  |  | (0.7)
Stock compensation expense |  |  |  |  | (29.8)
Interest expense, (net) |  |  |  |  | (3.0)
Other income (expense), net |  |  |  |  | 0.5
Income before income taxes |  |  |  |  | $ | 26.5 |
Revenues from foreign customers were approximately $226.6 million or 20% of total revenue for the year ended December 29, 2024. Revenues from any one foreign country did not exceed 10% of total revenues. Assets of foreign subsidiaries in the KGS segment were $223.2 million as of December 29, 2024. Assets from any one foreign country did not exceed 10% of total assets.
Year Ended December 31, 2023 | Kratos |  |  |  |
| Government |  | Unmanned |  |
| Solutions |  | Systems |  | Totals
Service revenues | $ | 395.9 |  |  | $ | 6.7 |  |  | $ | 402.6 |
Product sales | 429.0 |  |  | 205.5 |  |  | 634.5 |
Total revenues | 824.9 |  |  | 212.2 |  |  | 1,037.1 |
Cost of service revenue | 298.3 |  |  | 4.9 |  |  | 303.2 |
Cost of product sales | 301.9 |  |  | 163.4 |  |  | 465.3 |
Total cost of sales | 600.2 |  |  | 168.3 |  |  | 768.5 |
Selling, general & administrative expenses | 135.8 |  |  | 36.6 |  |  | 172.4 |
Research & development expenses | 35.3 |  |  | 3.1 |  |  | 38.4 |
Restructuring expenses and other | 0.9 |  |  | — |  |  | 0.9 |
Total segment operating income | 52.7 |  |  | 4.2 |  |  | 56.9 |
Reconciliation of segment operating income |  |  |  |  |
Unallocated amounts: |  |  |  |  |
Merger and acquisition related expenses |  |  |  |  | (0.4)
Stock compensation expense |  |  |  |  | (25.4)
Interest expense (net) |  |  |  |  | (20.5)
Other income (expense), net |  |  |  |  | 0.5
Income before income taxes |  |  |  |  | $ | 11.1 |
Year Ended December 25, 2022 | Kratos |  |  |  |
| Government |  | Unmanned |  |
| Solutions |  | Systems |  | Totals
Service revenues | $ | 320.0 |  |  | $ | 5.2 |  |  | $ | 325.2 |
Product sales | 356.6 |  |  | 216.5 |  |  | 573.1 |
Total revenues | 676.6 |  |  | 221.7 |  |  | 898.3 |
Cost of service revenue | 235.2 |  |  | 3.8 |  |  | 239.0 |
Cost of product sales | 260.0 |  |  | 173.3 |  |  | 433.3 |
Total cost of sales | 495.2 |  |  | 177.1 |  |  | 672.3 |
Selling, general & administrative expenses | 121.1 |  |  | 41.0 |  |  | 162.1 |
Research & development expenses | 32.2 |  |  | 6.4 |  |  | 38.6 |
Restructuring expenses and other | 0.9 |  |  | — |  |  | 0.9 |
Total segment operating income (loss) | 27.2 |  |  | (2.8) |  |  | 24.4 |
Reconciliation of segment operating income (loss) |  |  |  |  |
Unallocated amounts: |  |  |  |  |
Merger and acquisition related expenses |  |  |  |  | (0.7)
Stock compensation expense |  |  |  |  | (26.3)
Interest expense (net) |  |  |  |  | (17.7)
Loss on extinguishment of debt |  |  |  |  | (13.0)
Other income (expense), net |  |  |  |  | 0.6
Loss before income taxes |  |  |  |  | $ | (32.7) |
Revenues from foreign customers were approximately $173.1 million or 19% of total revenue for the year ended December 25, 2022. Revenues from any one foreign country did not exceed 10% of total revenues. Assets of foreign subsidiaries in the KGS segment were $178.3 million as of December 25, 2022. Assets from any one foreign country did not exceed 10% of total assets. (b) Capital Expenditures (in millions):
|  |  |  |  |  | Year Ended
| December 29, 2024 |  | December 31, 2023 |  | December 25, 2022
Kratos Government Solutions | $ | 30.5 |  |  | $ | 26.9 |  |  | $ | 21.0 |
Unmanned Systems | 27.3 |  |  | 24.9 |  |  | 24.2 |
Total reportable segment capital expenditures | 57.8 |  |  | 51.8 |  |  | 45.2 |
Corporate capital expenditures | 0.4 |  |  | 0.6 |  |  | 0.2 |
Total capital expenditures | $ | 58.2 |  |  | $ | 52.4 |  |  | $ | 45.4 |
(c) Depreciation and Amortization (in millions):
|  |  |  |  |  | Year Ended
| December 29, 2024 |  | December 31, 2023 |  | December 25, 2022
Kratos Government Solutions | $ | 27.1 |  |  | $ | 24.1 |  |  | $ | 22.7 |
Unmanned Systems | 13.2 |  |  | 9.1 |  |  | 7.8 |
Total depreciation and amortization | $ | 40.3 |  |  | $ | 33.2 |  |  | $ | 30.5 |
Reportable Segment Assets are as follows (in millions):
| December 29, 2024 |  | December 31, 2023
Kratos Government Solutions | $ | 1,250.4 |  |  | $ | 1,190.2 |
Unmanned Systems | 385.7 |  |  | 378.6 |
Total reportable segment assets | 1,636.1 |  |  | 1,568.8 |
Corporate assets(1) | 314.8 |  |  | 63.7 |
Total assets | $ | 1,950.9 |  |  | $ | 1,632.5 |
(1)Corporate assets primarily include cash and cash equivalents, deferred income tax assets, and property, plant and equipment used in our corporate operations.

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- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-25 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-22 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-30 + Details
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