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Segment Information (Tables) | 3 Months Ended
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Mar. 30, 2025
Segment Reporting [Abstract] |
Schedule of Segment Revenues, Depreciation and Amortization, and Operating Income | 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 Note 3 (Revenue Recognition) to these condensed consolidated financial statements for segment revenues disaggregated by contract type, customer and geographic region. The summary operating results for the Company’s reportable segments for the three month periods ended March 30, 2025 and March 31, 2024, are as follows (in millions):
Quarter Ended March 30, 2025 | Kratos Government Solutions |  | Unmanned Systems |  | Totals
Service revenues | $ | 100.7 |  |  | $ | 1.7 |  |  | $ | 102.4 |
Product sales | 138.8 |  |  | 61.4 |  |  | 200.2 |
Total revenues | 239.5 |  |  | 63.1 |  |  | 302.6 |
Cost of service revenue | 74.5 |  |  | 1.2 |  |  | 75.7 |
Cost of product sales | 101.4 |  |  | 51.9 |  |  | 153.3 |
Total cost of sales | 175.9 |  |  | 53.1 |  |  | 229.0 |
Selling, general & administrative expenses | 37.0 |  |  | 11.3 |  |  | 48.3 |
Research & development expenses | 9.6 |  |  | 0.4 |  |  | 10.0 |
Total segment operating income | 17.0 |  |  | (1.7) |  |  | 15.3 |
Reconciliation of segment operating income |  |  |  |  |
Unallocated amounts: |  |  |  |  |
Stock compensation expense |  |  |  |  | (8.7) |
Interest expense, (net) |  |  |  |  | (0.9) |
Other expense, net |  |  |  |  | (0.3) |
Income before income taxes |  |  |  |  | $ | 5.4 |
Revenues from foreign customers were approximately $61.1 million or 20% of total revenue for the three months ended March 30, 2025. Revenues from any one foreign country did not exceed 10% of total revenues.
Quarter Ended March 31, 2024 | Kratos Government Solutions |  | Unmanned Systems |  | Totals
Service revenues | $ | 104.6 |  |  | $ | 1.9 |  |  | $ | 106.5 |
Product sales | 113.2 |  |  | 57.5 |  |  | 170.7
Total revenues | 217.8 |  | 59.4 |  | 277.2
Cost of service revenue | 77.8 |  |  | 1.4 |  |  | 79.2 |
Cost of product sales | 80.6 |  |  | 46.4 |  |  | 127.0 |
Total cost of sales | 158.4 |  |  | 47.8 |  |  | 206.2 |
Selling, general & administrative expenses | 34.5 |  |  | 10.7 |  |  | 45.2 |
Research & development expenses | 8.3 |  |  | 1.3 |  |  | 9.6 |
Restructuring expenses and other | — |  |  | — |  |  | — |
Total segment operating income | 16.6 |  |  | (0.4) |  |  | 16.2 |
Reconciliation of segment operating income |  |  |  |  |
Unallocated amounts: |  |  |  |  |
Stock compensation expense |  |  |  |  | (9.2) |
Interest expense, (net) |  |  |  |  | (2.8) |
Other expense, net |  |  |  |  | (0.2) |
Income before income taxes |  |  |  |  | $ | 4.0 |
Revenues from foreign customers were approximately $53.1 million or 19% of total revenue for the three months ended March 31, 2024. Revenues from any one foreign country did not exceed 10% of total revenues.
(b) Capital Expenditures (in millions): | Quarter Ended
| March 30, 2025 |  | March 31, 2024
Kratos Government Solutions | $ | 13.6 |  |  | $ | 9.5 |
Unmanned Systems | 9.0 |  |  | 7.1 |
Total reportable segment capital expenditures | 22.6 |  |  | 16.6 |
Corporate capital expenditures | — |  |  | — |
Total capital expenditures | $ | 22.6 |  |  | $ | 16.6 |
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(c) Depreciation and Amortization (in millions): | Quarter Ended
|  | March 30, 2025 |  | March 31, 2024
Kratos Government Solutions | $ | 7.1 |  |  | $ | 6.1 |
Unmanned Systems | 3.3 |  | 3.2
Total depreciation and amortization | $ | 10.4 |  |  | $ | 9.3 |
d) Reportable Segment Assets are as follows (in millions): | March 30, 2025 |  | December 29, 2024
Kratos Government Solutions | $ | 1,348.0 |  |  | $ | 1,250.4 |
Unmanned Systems | 399.8 |  | 385.7
Total reportable segment assets | 1,747.8 |  |  | 1,636.1 |
Corporate assets(1) | 257.1 |  | 314.8
Total assets | $ | 2,004.9 |  |  | $ | 1,950.9 |
(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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