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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2012	Nov. 02, 2012
Document And Entity Information
Entity Registrant Name	KRATOS DEFENSE & SECURITY SOLUTIONS, INC.
Entity Central Index Key	0001069258
Current Fiscal Year End Date	--12-30
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 30, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Current Reporting Status	Yes
Entity Common Stock, Shares Outstanding		56,604,000

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Sep. 30, 2012	Dec. 25, 2011
Current assets:
Cash and cash equivalents	$ 37.6	$ 69.6
Restricted cash	5.6	1.1
Accounts receivable, net	281.4	245.3
Inventoried costs	99.9	76.6
Prepaid expenses	17.6	12.7
Other current assets	14.5	15.7
Total current assets	456.6	421.0
Property, plant and equipment, net	84.6	72.5
Goodwill	678.5	571.6
Intangible assets, net	132.2	124.6
Other assets	21.0	26.3
Total assets	1,372.9	1,216.0
Current liabilities:
Accounts payable	81.0	48.8
Accrued expenses	51.7	50.7
Accrued compensation	41.9	39.8
Accrued interest	21.7	5.1
Billings in excess of costs and earnings on uncompleted contracts	44.0	36.2
Other current liabilities	33.8	33.2
Total current liabilities	274.1	213.8
Long-term debt principal, net of current portion	630.0	630.8
Long-term debt premium	19.7	22.8
Other long-term liabilities	36.5	36.0
Total liabilities	960.3	903.4
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.001 par value, 5,000,000 shares authorized, 0 shares outstanding at December 25, 2011 and September 30, 2012	0.0	0.0
Common stock, $0.001 par value, 195,000,000 shares authorized; 32,421,135 and 56,554,000 shares issued and outstanding at December 25, 2011 and September 30, 2012, respectively	0.0	0.0
Additional paid-in capital	845.4	720.6
Accumulated other comprehensive loss	(0.6)	(0.2)
Accumulated deficit	(432.2)	(407.8)
Total stockholders' equity	412.6	312.6
Total liabilities and stockholders' equity	$ 1,372.9	$ 1,216.0

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2012	Dec. 25, 2011
Preferred Stock:
Shares authorized	5,000,000	5,000,000
Par value	$ 0.001	$ 0.001
Shares outstanding	0	0
Common Stock:
Par value	$ 0.001	$ 0.001
Shares authorized	195,000,000	195,000,000
Shares issued	56,554,000	32,421,135
Shares outstanding	56,554,000	32,421,135

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 25, 2011	Sep. 30, 2012	Sep. 25, 2011
Service revenues	$ 125.6	$ 93.2	$ 339.8	$ 248.3
Product sales	150.7	113.4	365.8	252.2
Total revenues	276.3	206.6	705.6	500.5
Cost of service revenues	98.3	68.6	264.8	186.9
Cost of product sales	103.9	79.0	251.6	181.8
Total costs	202.2	147.6	516.4	368.7
Gross profit	74.1	59.0	189.2	131.8
Selling, general and administrative expenses	54.5	42.4	140.9	95.7
Merger and acquisition expenses	0.3	3.7	2.7	11.3
Research and development expenses	4.5	3.2	12.9	5.0
Unused office space and other	0.7	0.0	2.1	0.0
Operating income from continuing operations	14.1	9.7	30.6	19.8
Other income (expense):
Interest expense, net	(17.6)	(15.0)	(49.9)	(34.8)
Other income, net	0.4	(0.3)	1.3	0.0
Total other expense, net	(17.2)	(15.3)	(48.6)	(34.8)
Loss from continuing operations before income taxes	(3.1)	(5.6)	(18.0)	(15.0)
Provision for income taxes from continuing operations	1.3	1.6	3.8	1.3
Loss from continuing operations	(4.4)	(7.2)	(21.8)	(16.3)
Income (loss) from discontinued operations	0.2	0.3	(2.6)	0.7
Net loss	$ (4.2)	$ (6.9)	$ (24.4)	$ (15.6)
Basic income (loss) per common share:
Net loss from continuing operations	$ (0.08)	$ (0.23)	$ (0.50)	$ (0.64)
Net income (loss) from discontinued operations	0.01	0.01	(0.06)	0.02
Net loss per common share	(0.07)	(0.22)	(0.56)	(0.62)
Diluted income (loss) per common share:
Net loss from continuing operations	(0.08)	(0.23)	(0.50)	(0.64)
Net income (loss) from discontinued operations	0.01	0.01	(0.06)	0.02
Net loss per common share	$ (0.07)	$ (0.22)	$ (0.56)	$ (0.62)
Weighted average common shares outstanding:
Basic	56.6	30.8	43.8	25.3
Diluted	56.6	30.8	43.8	25.3
Comprehensive Loss
Net loss from above	$ (4.2)	$ (6.9)	$ (24.4)	$ (15.6)
Other comprehensive income:
Change in cumulative translation adjustment	0.2	0.1	0.4	0.1
Other comprehensive income, net of tax	0.2	0.1	0.4	0.1
Comprehensive loss	$ (4.0)	$ (6.8)	$ (24.0)	$ (15.5)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2012	Sep. 25, 2011
Operating activities:
Net loss	$ (24.4)	$ (15.6)
Less: Income (loss) from discontinued operations	(2.6)	0.7
Loss from continuing operations	(21.8)	(16.3)
Adjustments to reconcile loss from continuing operations to net cash provided by operating activities from continuing operations:
Depreciation and amortization	42.5	31.4
Deferred income taxes	1.4	0.2
Stock-based compensation	4.6	2.3
Mark to market on swaps	0.0	(0.3)
Amortization of deferred financing costs	3.8	2.5
Amortization of premium on Senior Secured Notes	(3.1)	0.0
Provision for doubtful accounts	0.4	0.3
Changes in assets and liabilities, net of acquisitions:
Accounts receivable	(6.3)	(10.6)
Inventoried costs	(10.4)	3.3
Prepaid expenses and other assets	(1.9)	10.3
Accounts payable	22.8	(42.4)
Accrued compensation	(1.5)	1.1
Accrued expenses	(5.2)	17.3
Accrued interest payable	16.6	20.6
Billings in excess of costs and earnings on uncompleted contracts	(4.7)	(5.9)
Income tax receivable and payable	(0.8)	1.0
Other liabilities	(1.3)	(2.2)
Net cash provided by operating activities from continuing operations	35.1	12.6
Investing activities:
Cash paid for acquisitions, net of cash acquired	(149.4)	(373.8)
Decrease in restricted cash	0.5	3.3
Capital expenditures	(12.0)	(5.3)
Net cash used in investing activities from continuing operations	(160.9)	(375.8)
Financing activities:
Proceeds from the issuance of long-term debt	0.0	427.5
Proceeds from the issuance of common stock	97.0	61.1
Debt issuance costs	(1.2)	(20.6)
Borrowing under the line of credit	40.0	0.0
Repayment of debt	(40.8)	(2.5)
Cash paid for contingent acquisition consideration	(2.5)	0.0
Other	(0.9)	1.5
Net cash provided by financing activities from continuing operations	91.6	467.0
Net cash flows of continuing operations	(34.2)	103.8
Net operating cash flows of discontinued operations	2.1	(5.3)
Effect of exchange rate changes on cash and cash equivalents	0.1	(0.2)
Net increase (decrease) in cash and cash equivalents	(32.0)	98.3
Cash and cash equivalents at beginning of period	69.6	10.8
Cash and cash equivalents at end of period	$ 37.6	$ 109.1

Summary of Significant Accounting Policies (Notes)

9 Months Ended

Sep. 30, 2012

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of Significant Accounting Policies

All references to the “Company” and “Kratos” refer to Kratos Defense & Security Solutions, Inc., a Delaware corporation, and its subsidiaries.


(a)	Basis of Presentation

The information as of September 30, 2012 and for the three and nine months ended September 25, 2011 and September 30, 2012 is unaudited. The condensed consolidated balance sheet as of December 25, 2011 was derived from the Company’s audited consolidated financial statements at that date. In the opinion of management, these unaudited condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the interim periods presented. The results have been prepared in accordance with the instructions to Form 10-Q and do not necessarily include all information and footnotes necessary for presentation in accordance with accounting principles generally accepted in the U.S. (“GAAP”). These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the related notes included in the Company’s audited annual consolidated financial statements for the fiscal year ended December 25, 2011, included in the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission ("SEC") on March 7, 2012 (the “Form 10-K”). Interim operating results are not necessarily indicative of operating results expected in subsequent periods or for the year as a whole.


(b)	Principles of Consolidation

The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries for which all inter-company transactions have been eliminated in consolidation


(c)	Fiscal Year

The Company has a 52/53 week fiscal year ending on the last Sunday of the calendar year, with interim fiscal periods ending on the last Sunday of the last month of each calendar quarter. The nine months ended September 25, 2011 consisted of a 39-week period. The nine months ended September 30, 2012 consisted of a 40-week period. There were 52 calendar weeks in the fiscal year ended on December 25, 2011 and there are 53 calendar weeks in the fiscal year ending December 30, 2012.


(d)	Accounting Policies and Accounting Standards Updates

There have been no changes in the Company's significant accounting policies for the nine months ended September 30, 2012 as compared to the significant accounting policies described in the Form 10-K. In addition, none of the new accounting standards updates issued by the Financial Accounting Standards Board ("FASB") during the nine months ended September 30, 2012 have had or are expected to have a material effect on the Company's consolidated financial position, results of operations, or cash flows.


(e)	Concentrations and Uncertainties

The Company maintains cash balances at various financial institutions and such balances commonly exceed the $250,000 insured amount by the Federal Deposit Insurance Corporation. The Company has not experienced any losses in such accounts, and management believes that the Company is not exposed to any significant credit risk with respect to such cash and cash equivalents.

Financial instruments, which subject the Company to potential concentrations of credit risk, consist principally of the Company’s billed and unbilled accounts receivable. The Company’s accounts receivable result from sales to customers within the federal government, state and local agencies and commercial customers in various industries. The Company performs ongoing credit evaluations of its commercial customers. Credit is extended based on evaluation of the customer’s financial condition, and collateral is not required. Accounts receivable are recorded at the invoiced amount and do not bear interest. See Note 12 for a discussion of the Company’s significant customers.

The Company has outstanding 10% Senior Secured Notes due 2017 ("the Notes") with an aggregate principal amount of $625.0 million outstanding as of September 30, 2012. The Notes are due on June 1, 2017 and the Company pays interest at the rate of 10% per annum semi-annually, in arrears, on June 1 and December 1 of each year. In addition, the Company has $88.9 million available under its existing revolving credit agreement. See Note 9 for a complete description of the Company’s debt.

The Company intends to fund its cash requirements with cash on hand, cash flows from operating activities and borrowings under its existing revolving credit facility. Management believes these sources of liquidity should be sufficient to meet the Company’s cash needs for at least the next 12 months. The Company’s quarterly and annual operating results have fluctuated in the past and may vary in the future due to a variety of factors, many of which are external to the Company's control. If the conditions in its industry deteriorate, its customers cancel or postpone projects or if the Company is unable to sufficiently increase its revenues or reduce its expenses, the Company may experience, in the future, a significant long-term negative impact to its financial results and cash flows from operations. In such a situation, the Company could fall out of compliance with its financial and other covenants which, if not waived, could limit its liquidity and capital resources.

- Definition

The entire disclosure for the organization, consolidation and basis of presentation of financial statements disclosure, and significant accounting policies of the reporting entity. May be provided in more than one note to the financial statements, as long as users are provided with an understanding of (1) the significant judgments and assumptions made by an enterprise in determining whether it must consolidate a VIE and/or disclose information about its involvement with a VIE, (2) the nature of restrictions on a consolidated VIE's assets reported by an enterprise in its statement of financial position, including the carrying amounts of such assets, (3) the nature of, and changes in, the risks associated with an enterprise's involvement with the VIE, and (4) how an enterprise's involvement with the VIE affects the enterprise's financial position, financial performance, and cash flows. Describes procedure if disclosures are provided in more than one note to the financial statements.

+ References + Details

Acquisitions (Notes)

9 Months Ended

Sep. 30, 2012

Business Combinations [Abstract]

Acquisitions

(a) Summary of Recent Acquisitions

Composite Engineering, Inc.

On July 2, 2012, the Company completed the acquisition of Composite Engineering, Inc. ("CEI") for approximately $163.5 million. The purchase price, which is subject to adjustments for working capital, consists of $135.0 million paid in cash, of which $10.7 million was placed into an escrow account as security for CEI's indemnification obligations as set forth in the CEI purchase agreement, and 4.0 million shares of the Company's common stock, valued at $5.94 per share on July 2, 2012, or $23.8 million. In addition, the Company paid $2.5 million to retire certain pre-existing CEI debt and settle pre-existing accounts receivable from CEI at its carrying and fair value of $3.0 million. The Company plans to make an election under Section 338(h)(10) of the Internal Revenue Code, which will result in tax deductible goodwill related to this transaction and will cover an estimated $0.8 million in additional tax liability incurred by the shareholders of CEI for this election. The Company estimates that the tax deductible goodwill, which is subject to change based upon the final fair value of assets acquired and liabilities assumed, will be approximately $101.0 million and can be deducted for federal and California state income taxes over a 15-year period.

In connection with the completion of the CEI transaction, certain CEI personnel entered into long-term employment agreements with the Company and on July 2, 2012, the Company granted an aggregate 2.0 million restricted stock units ("RSUs") as long-term retention inducement grants to certain employees of CEI who have joined Kratos. The RSUs, which have an estimated value of $11.9 million, vest on the fourth anniversary of the closing of the CEI acquisition, or earlier upon the occurrence of certain events, and are being accounted for as compensation expense over such four-year period.

To fund the acquisition of CEI, on May 14, 2012, the Company sold approximately 20.0 million shares of its common stock at a purchase price of $5.00 per share in an underwritten public offering. The Company received gross proceeds of approximately $100.0 million and net proceeds of approximately $97.0 million after deducting underwriting fees and other offering expenses. The Company used the net proceeds from this offering to fund a portion of the purchase price for the acquisition of CEI. In addition, the Company used borrowings of $40.0 million from its revolving line of credit to fund the purchase price of CEI.

CEI is a vertically integrated manufacturer and developer of unmanned aerial target systems and composite structures used for national security programs. Its drones are designed to replicate some of the most lethal aerial threats facing warfighters and strategic assets. CEI's customers include U.S. agencies and foreign governments. CEI is a part of the Kratos Government Solutions ("KGS") segment.

The transaction has been accounted for using the acquisition method of accounting, which requires, among other things, that the assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date. The following table summarizes the preliminary estimated fair values of the major assets acquired and liabilities assumed (in millions):



Cash	$	8.9
Accounts receivable	9.3
Inventoried costs	12.5
Other current assets	8.8
Property and equipment	7.8
Intangible assets	38.0
Goodwill	103.2
Total assets	188.5
Current liabilities	(25.0		)
Net assets acquired	$	163.5

The goodwill recorded in this transaction is tax deductible.

As of July 2, 2012, the expected fair value of accounts receivable approximated historical cost. The gross accounts receivable was $9.3 million, none of which is not expected to be collectible. There was no contingent purchase consideration associated with the acquisition of CEI.

The amounts of revenue and operating income of CEI included in the Company's Condensed Consolidated Statement of Operations for the three months ended September 30, 2012 are $34.7 million and $1.7 million, respectively.

Asset Purchase

On December 30, 2011, the Company acquired selected assets of a critical infrastructure security and public safety system integration business (the “Critical Infrastructure Business”) for approximately $20.0 million. The asset purchase agreement provides that the purchase price will be (i) increased on a dollar-for-dollar basis if the working capital on the closing date (as defined in the asset purchase agreement) exceeds $17.0 million or (ii) decreased on a dollar-for-dollar basis if the working capital is less than $17.0 million. In accordance with the terms of the asset purchase agreement, the Company submitted its computation of the closing working capital to the Seller on April 27, 2012, which reflected a deficiency to the minimum required working capital. The Seller had 60 days to object to the Company's computation of the closing working capital. Recently, both parties have mutually agreed to extend the time to discuss the Company's closing working capital computations and the Seller's objections to November 30, 2012. As the Seller and the Company have not yet agreed on the working capital adjustment, the Company has not reflected an adjustment to the purchase price.

The Critical Infrastructure Business designs, engineers, deploys, manages and maintains specialty security systems at some of the most strategic asset and critical infrastructure locations in the U.S. Additionally, these security systems are typically integrated into command and control system infrastructure or command centers. Approximately 15% of the revenues of the Critical Infrastructure Business are recurring in nature due to the operation, maintenance or sustainment of the security systems once deployed. The Critical Infrastructure Business is part of the Company's Public Safety & Security (“PSS”) segment.



Accounts receivable	$	23.4
Other assets	0.5
Intangible assets	2.0
Goodwill	3.8
Total assets	29.7
Current liabilities	(9.7		)
Net assets acquired	$	20.0

The goodwill recorded in this transaction is tax deductible.

As of December 30, 2011, the expected fair value of accounts receivable approximated historical cost. The gross accounts receivable was $24.4 million, of which approximately $1.0 million is not expected to be collectible.

Due to the integration of the Critical Infrastructure Business with our existing PSS business it is impractical to estimate the amounts of revenue and operating income (loss) included in the Company's Condensed Consolidated Statement of Operations.

SecureInfo Corporation

On November 15, 2011, the Company acquired SecureInfo Corporation (“SecureInfo”) for $20.3 million in cash, which includes a $1.5 million earn-out that was paid in March 2012. Upon completion of the SecureInfo transaction, the Company deposited $1.8 million of the purchase price into an escrow account as security for SecureInfo's indemnification obligations as set forth in the SecureInfo purchase agreement. In addition, the SecureInfo purchase agreement provided that the purchase price would be (i) increased on a dollar for dollar basis if the working capital on the closing date (as defined in the SecureInfo purchase agreement) exceeded $2.2 million or (ii) decreased on a dollar for dollar basis if the working capital was less than $2.2 million. The SecureInfo working capital was $2.1 million, and the Company and SecureInfo agreed to a working capital adjustment of $0.1 million.

Based in northern Virginia, SecureInfo is a cybersecurity company specializing in assisting defense, intelligence, civilian government and commercial customers to identify, understand, document, manage, mitigate and protect against cybersecurity risks while reducing information security costs and achieving compliance with applicable regulations, standards and guidance. SecureInfo offers strategic advisory, operational cybersecurity and cybersecurity risk management services and is a recognized leader in the rapidly evolving fields of cloud security, continuous monitoring and cybersecurity training. Customers include the Department of Defense, the Department of Homeland Security and large commercial customers, including market leading cloud computing service providers. SecureInfo is part of the KGS segment.

The SecureInfo transaction has been accounted for using the acquisition method of accounting, which requires, among other things, that the assets acquired and liabilities assumed be recognized at their fair values as of the merger date. The following table summarizes the preliminary estimated fair values of the major assets acquired and liabilities assumed (in millions):



Cash	$	1.4
Other assets	3.0
Property and equipment	0.1
Intangible assets	4.5
Goodwill	12.2
Total assets	21.2
Current liabilities	(0.9		)
Net assets acquired	$	20.3

The goodwill recorded in this transaction is not tax deductible.

As of November 15, 2011, the expected fair value of accounts receivable approximated historical cost. The gross accounts receivable was $2.9 million, none of which is not expected to be collectible.

The amounts of revenue and operating loss of SecureInfo included in the Company's Condensed Consolidated Statement of Operations for the three months ended September 30, 2012 were $4.6 million and $0.2 million, respectively. The amounts of revenue and operating income for the nine months ended September 30, 2012 were $12.3 million and $0.2 million, respectively.

Integral Systems, Inc.

On July 27, 2011, the Company acquired Integral Systems, Inc. (“Integral”) in a cash and stock transaction valued at $241.1 million. Upon completion of the acquisition, the Company paid an aggregate of $131.4 million in cash, issued approximately 10.4 million shares of the Company's common stock valued at $108.7 million and issued replacement stock options with a fair value of $1.0 million.

To fund the cash portion of the acquisition, on July 27, 2011, the Company issued $115.0 million aggregate principal amount of 10% Senior Secured Notes due 2017 (the “Notes”). The Notes were issued at a premium of 105% for an effective interest rate of approximately 8.9%. The gross proceeds of approximately $120.8 million, which includes an approximate $5.8 million issuance premium and excludes accrued interest received of $1.8 million, were used to finance, in part, the cash portion of the purchase price for the acquisition of Integral, to refinance existing indebtedness of Integral and its subsidiaries, to pay certain severance payments in connection with the acquisition and to pay related fees and expenses. See Note 9 for a complete description of the Company's debt.

As consideration for the acquisition of Integral, each Integral stockholder received (i) $5.00 in cash, without interest, and (ii) 0.588 shares of the Company's common stock for each share of Integral common stock. In addition, upon completion of the acquisition (i) each outstanding Integral stock option with an exercise price less than $13.00 per share was, if the holder thereof had so elected in writing, canceled in exchange for an amount in cash equal to the product of the total number of shares of Integral common stock subject to such in-the-money option, multiplied by the aggregate value of the excess, if any, of $13.00 over the exercise price per share applicable to such option, less the amount of any tax withholding, (ii) each outstanding Integral stock option with an exercise price equal to or greater than $13.00 per share and each Integral in-the-money option the holder of which had not made the election described in (i) above was converted into an option to purchase Company common stock, with the number of shares subject to such option adjusted to equal the number of shares of Integral common stock subject to such out-of-the-money option multiplied by 0.9559, rounded up to the nearest whole share, and the per share exercise price under each such option adjusted by dividing the per share exercise price applicable to such option by 0.9559, rounded up to the nearest whole cent, and (iii) each outstanding share of restricted stock granted under an Integral equity plan or otherwise, whether vested or unvested, was canceled and converted into the right to receive $13.00, less the amount of any tax withholding.

Integral is a global provider of products, systems and services for satellite command and control, telemetry and digital signal processing, data communications, enterprise network management and communications information assurance. Integral specializes in developing, managing and operating secure communications networks, both satellite and terrestrial, as well as systems and services to detect, characterize and geolocate sources of radio frequency or RF interference. Integral’s customers include U.S. and foreign commercial, government, military and intelligence organizations. For almost 30 years, customers have relied on Integral to design and deliver innovative commercial-based products, solutions and services that are cost-effective and reduce delivery schedules and risk. Integral is part of the Company’s KGS segment.

The excess of the purchase price over the fair value of the tangible and identifiable intangible assets acquired and liabilities assumed in the acquisition was allocated to goodwill. The value of the goodwill represents the value the Company expects to be created by Integral’s significant expertise with satellite operations, ground systems, signal processing and other areas of satellite command and control, as well as advanced technologies for Unmanned Aerial Vehicles, situational awareness, remote management and numerous established electronic attack and electronic warfare platforms, tactical missile systems, and strategic deterrence systems. The Integral transaction has been accounted for using the acquisition method of accounting which requires, among other things, that the assets acquired and liabilities assumed be recognized at their fair values as of the merger date. The following table summarizes the fair values of the major assets acquired and liabilities assumed (in millions):



Cash	$	6.8
Accounts receivable	68.4
Inventoried costs	15.8
Deferred tax assets	36.4
Other assets	3.5
Property and equipment	12.9
Intangible assets	32.0
Goodwill	187.8
Total assets	363.6
Current liabilities	(84.5		)
Deferred tax liabilities	(19.5		)
Long-term liabilities	(18.5		)
Net assets acquired	$	241.1

The goodwill recorded in this transaction is not tax deductible.

As of July 27, 2011, the expected fair value of accounts receivable approximated the historical cost. The gross accounts receivable was $68.5 million, of which $0.1 million is not expected to be collectible. There was no contingent purchase consideration associated with the acquisition of Integral.

The amounts of revenue and operating income of Integral included in the Company’s Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2012 were $58.1 million and $5.0 million, and $152.9 million and $7.2 million, respectively. The amounts of revenue and operating income of Integral included in the Company's Condensed Consolidated Statements of Operations for both the three and nine months ended September 25, 2011 was $44.9 million and $5.1 million, respectively.

Herley Industries, Inc.

On March 25, 2011, the Company acquired approximately 13.2 million shares of Herley Industries, Inc. ("Herley") common stock, representing approximately 94% of the total outstanding shares of Herley common stock, in a tender offer to purchase all of the outstanding shares of Herley common stock. The fair value of the non-controlling interest related to Herley as of March 25, 2011 was $16.9 million, which represents the market trading price of $19.00 per share multiplied by approximately 0.9 million shares that were not tendered as of March 25, 2011. On March 30, 2011, following the purchase of the non-controlling interest in a subsequent offering period, Herley became a wholly owned subsidiary of the Company. The shares of Herley common stock were purchased at a price of $19.00 per share. Accordingly, the Company paid approximately $245.5 million in cash consideration as of March 27, 2011, and as of April 15, 2011 the Company had paid aggregate cash consideration of $270.7 million for the shares of Herley common stock and certain in-the-money options, which were exercised upon the change in control. In addition, upon completion of the subsequent short-form merger, all unexercised options to purchase Herley common stock were assumed by the Company and converted into options to purchase Kratos common stock, entitling the holders thereof to receive 1.3495 shares of Kratos common stock for each share of Herley common stock underlying the options (“Herley Options”). The Company assumed each Herley Option in accordance with the terms (as in effect as of the date of the Herley Merger Agreement) of the applicable Herley equity plan and the option agreement pursuant to which such Herley Option was granted. The Herley Options are exercisable for an aggregate of approximately 0.8 million shares of the Company’s common stock. All Herley Options were fully vested upon the change in control, and the fair value of the Herley Options assumed was $1.9 million. The total aggregate consideration for the purchase of Herley was $272.5 million. In addition, the Company assumed change in control obligations of $4.0 million related to the transaction and incurred combined transaction expenses of $11.1 million.

To fund the acquisition of Herley, on February 11, 2011, Kratos sold approximately 4.9 million shares of its common stock at a purchase price of $13.25 per share in an underwritten public offering. Kratos received gross proceeds of approximately $64.8 million and net proceeds of approximately $61.1 million after deducting underwriting fees and other offering expenses. Kratos used the net proceeds from this offering to fund a portion of the purchase price for the acquisition of Herley. To fund the remaining purchase price, Kratos issued $285.0 million in aggregate principal amount of Notes at a premium of 107% through its wholly owned subsidiary, Acquisition Co. Lanza Parent ("Lanza"), on March 25, 2011, in an unregistered offering pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended. On April 4, 2011, after the acquisition of Herley was complete, Lanza was merged with and into Kratos and all assets and liabilities of Lanza became assets and liabilities of Kratos. See Note 9 for a complete description of the Company’s debt.

Herley is a leading provider of microwave technologies for use in command and control systems, flight instrumentation, weapons sensors, radar, communication systems, electronic warfare and electronic attack systems. Herley has served the defense industry for approximately 45 years by designing and manufacturing microwave devices for use in high-technology defense electronics applications. It has established relationships, experience and expertise in the military electronics, electronic warfare and electronic attack industry. Herley’s products represent key components in the national security efforts of the U.S., as they are employed in mission-critical electronic warfare, electronic attack, electronic warfare threat and radar simulation, command and control network, and cyber warfare/cyber security applications. Herley is part of the KGS segment.

The Herley transaction has been accounted for using the acquisition method of accounting, which requires, among other things, that the assets acquired and liabilities assumed be recognized at their fair values as of the merger date. The following table summarizes the fair values of the major assets acquired and liabilities assumed (in millions):



Cash	$	21.8
Accounts receivable	39.1
Inventoried costs	42.8
Deferred tax assets	17.3
Other assets	7.2
Property and equipment	34.2
Intangible assets	37.0
Goodwill	146.4
Total assets	345.8
Current liabilities	(40.8		)
Deferred tax liabilities	(16.8		)
Debt	(9.5		)
Long-term liabilities	(6.2		)
Net assets acquired	$	272.5

The goodwill recorded in this transaction is not tax deductible.

As of March 25, 2011, the expected fair value of accounts receivable approximated the historical cost. The gross accounts receivable was $39.3 million, of which $0.2 million is not expected to be collectible. There were no contingent liabilities associated with the acquisition of Herley. The Company initially recorded $47.9 million of inventory and $30.4 million in property and equipment. The Company decreased the value of acquired inventory to $42.8 million and increased the value of acquired property and equipment to $34.2 million based on the final valuations.

The amounts of revenue and operating income of Herley included in the Company’s Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2012 were $50.0 million and $8.4 million, and $145.9 million and $22.5 million, respectively. The amounts of revenue and operating income of Herley included in the Company's condensed consolidated statements of operations for the three and nine months ended September 25, 2011 were $48.7 million and $3.4 million, and $100.6 million and $9.9 million, respectively.

In accordance with FASB Accounting Standards Codification ("ASC") Topic 805, Business Combinations (“Topic 805”), the allocation of the purchase price for the Company’s acquisitions of SecureInfo, the Critical Infrastructure Business, and CEI are subject to adjustment during the measurement period after the respective closing dates when additional information on asset and liability valuations become available. The above estimated fair values of assets acquired and liabilities assumed are provisional and are based on the information that was available as of the respective acquisition dates to estimate the fair value of assets acquired and liabilities assumed. Measurement period adjustments reflect new information obtained about facts and circumstances that existed as of the respective acquisition dates. The Company believes that such information provides a reasonable basis for estimating the fair values of assets acquired and liabilities assumed, but the Company is waiting for additional information necessary to finalize those fair values. The Company has not finalized its valuation of certain assets and liabilities recorded in connection with these transactions, including intangible assets, inventory, property and equipment, contingent liabilities, and deferred taxes. Thus, the provisional measurements recorded are subject to change. Any changes will be recorded as adjustments to the fair value of those assets and liabilities, and residual amounts will be allocated to goodwill. The final valuation adjustments may also require adjustment to the Condensed Consolidated Statements of Operations.

Pro Forma Financial Information

The following tables summarize the supplemental Condensed Consolidated Statements of Operations information on an unaudited pro forma basis as if the acquisitions of CEI, the Critical Infrastructure Business, SecureInfo, Integral, and Herley occurred on December 27, 2010 and include adjustments that were directly attributable to the foregoing transactions or were not expected to have a continuing impact on the Company. All acquisitions were included in the results of operations for the three months ended September 30, 2012 and all acquisitions, except CEI, were included in the Company's results of operations for the nine months ended September 30, 2012. There are no material, nonrecurring pro forma adjustments directly attributable to the business combinations included in the reported pro forma revenue and earnings for 2011 and 2012. The pro forma results are for illustrative purposes only for the applicable period and do not purport to be indicative of the actual results that would have occurred had the transactions been completed as of the beginning of the period, nor are they indicative of results of operations that may occur in the future (all amounts, except per share amounts are in millions):



	For the Three Months Ended September 25, 2011			For the Nine Months Ended September 25, 2011			For the Nine Months Ended September 30, 2012
Pro forma revenues	$	244.7		$	771.4		$	752.8
Pro forma net loss before tax	(32.4		)	(60.3		)	(27		)
Pro forma net loss	(34.0		)	(61.7		)	(29.6		)
Net loss attributable to the registrant	(7.2		)	(16.3		)	(16.2		)
Basic and diluted pro forma loss per share	$	(0.58	)	$	(1.06	)	$	(0.52	)

The pro forma financial information reflects acquisition related expenses incurred, pro forma adjustments for the additional amortization associated with finite-lived intangible assets acquired, additional incremental interest expense, deferred financing costs related to the financing undertaken for the Integral and Herley transactions, the change in stock compensation expense as a result of the exercise of stock options and restricted stock immediately prior to closing of the Integral and Herley transactions, stock compensation related to the RSUs granted in the CEI transaction, and the related tax expense. The weighted average common shares also reflect the issuance of 4.9 million shares in February 2011 for the Herley acquisitions and 10.4 million shares in July 2011 for the Integral acquisition.

These adjustments are as follows (in millions except per share data):



	For the Three Months Ended September 25, 2011			For the Nine Months Ended September 25, 2011			For the Nine Months Ended September 30, 2012
Acquisition related expenses	$	3.7		$	11.3		$	2.7
Intangible amortization	6.0			28.0			12.1
Net change in stock compensation expense	2.2			(1.4		)	2.2
Net change in interest expense	1.3			11.3			—
Net change in income tax benefit (expense)	(0.2		)	(0.1		)	—
Increase in weighted average common shares outstanding for shares issued and not already included in the weighted average common shares outstanding	27.5			32.9			12.7

Contingent Acquisition Consideration

In connection with certain acquisitions, the Company has agreed to make additional future payments to the seller contingent upon achievement of specific performance-based milestones by the acquired entities. Pursuant to the provisions of Topic 805, the Company will re-measure these liabilities each reporting period and record changes in the fair value in its Condensed Consolidated Statement of Operations. Increases or decreases in the fair value of the contingent consideration liability which is measured as the present value of expected future cash flows, a Level 3 (Level 3 hierarchy as defined by ASC Topic 820, Fair Value Measurements and Disclosures (“Topic 820”)) measurement in the fair value hierarchy, can result from changes in discount periods and rates, as well as changes in the estimates on the achievement of the performance-based milestones.

Contingent acquisition consideration as of December 25, 2011 and September 30, 2012 is summarized in the following table (in millions):



Balance as of December 25, 2011	$	7.6
Cash payments	(4.0		)
Adjustments	(0.5		)
Balance as of September 30, 2012	$	3.1

As of September 30, 2012, $2.0 million is reflected in other current liabilities and $1.1 million is reflected in other long-term liabilities in the condensed consolidated balance sheet. Other than the cash payments noted above, there were no changes in the fair value of contingent consideration for the three and nine month periods ended September 30, 2012.

Pursuant to the terms of the agreement and plan of merger with DEI Services Corporation entered into on August 9, 2010 (“the DEI Agreement”), upon achievement of certain cash receipts, revenue, EBITDA and backlog amounts in 2010, 2011 and 2012, the Company will be obligated to pay certain additional contingent consideration (the “DEI Contingent Consideration”). The Company has paid $2.9 million related to the DEI Contingent Consideration, of which $2.5 million was paid in April 2012. As of September 30, 2012, the potential undiscounted amount of future DEI Contingent Consideration that may be payable by the Company under the DEI Agreement is between $1.0 million and $4.0 million, subject to potential reductions if certain cash receipts are not collected, which was reduced by $0.5 million in the third quarter of 2012 related to certain amounts that were not collected. The DEI Contingent Consideration, which includes contingent consideration already paid and potential future contingent consideration, has a right of offset in the event certain anticipated cash receipts are not collected within agreed upon time period and could reduce the prior and future contingent consideration by approximately $5.5 million.

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
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-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1497-128463

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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-URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4845-128472

Reference 8: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
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-SubTopic 10
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Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 88-16
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph F4
-Subparagraph e
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Reference 18: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
-Number 141
-Paragraph 51, 52
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 67-73
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Goodwill and Intangible Assets (Notes)

9 Months Ended

Sep. 30, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets


(a)	Goodwill

The Company performs its annual impairment test for goodwill in accordance with ASC Topic 350, Intangibles-Goodwill and Other (“Topic 350”) as of the last day of each fiscal year or when evidence of potential impairment exists.

The Company assesses goodwill for impairment at the reporting unit level, which is defined as an operating segment or one level below an operating segment, referred to as a component. The Company determines its reporting units by first identifying its operating segments, and then assessing whether any components of these segments constitute a business for which discrete financial information is available and where segment management regularly reviews the operating results of that component. The Company aggregates components within an operating segment that have similar economic characteristics. For the annual and, if necessary, interim impairment assessment, the Company identified its reporting units to be its KGS and PSS operating segments.

In order to test for potential impairment, the Company estimates the fair value of each of its reporting units based on a comparison and weighting of the income approach, specifically the discounted cash flow method and the market approach, which estimates the fair value of the Company's reporting units based upon comparable market prices and recent transactions and also validates the reasonableness of the implied multiples from the income approach. The Company reconciles the fair value of its reporting units to its market capitalization by calculating its market capitalization based upon an average of its stock price prior to and subsequent to the date the Company performs its analysis and assuming a control premium. The Company uses these methodologies to determine the fair value of its reporting units for comparison to their corresponding book values because there are no observable inputs available, a Level 3 measurement. If the book value exceeds the estimated fair value for a reporting unit a potential impairment is indicated, and Topic 350 prescribes the approach for determining the impairment amount, if any.

In accordance with Topic 350, as a result of the Company's decision in June 2012 to dispose of certain non-core businesses acquired in the Integral acquisition, the Company allocated $1.5 million of goodwill to discontinued operations, which resulted in an impairment charge (see Note 8). The Company then tested the goodwill remaining in the KGS reporting unit. The fair value of the KGS reporting unit exceeded its carrying value by 7.4% Considering the relatively small excess of fair value over carrying value for the KGS reporting unit and given the current market conditions and continued economic uncertainty in the U.S. defense industry as a result of the Budget Control Act of 2011 (the "Budget Control Act"), the fair value of the KGS reporting unit may deteriorate, resulting in an impairment of the goodwill in that unit. Due to continual changes in market and general business conditions, the Company cannot predict whether, and to what extent, its goodwill and long-lived intangible assets may be impaired in future periods. Any resulting impairment loss could harm the Company's profitability and financial condition.

The changes in the carrying amount of goodwill for the nine months ended September 30, 2012 are as follows (in millions):



	Public Safety & Security		Kratos Government Solutions			Total
Balance as of December 25, 2011	$	33.0	$	539.0		$	572.0
Retrospective adjustments	—		(0.4		)	(0.4		)
Balance as of December 25, 2011 after retrospective adjustments	33.0		538.6			571.6
Additions due to business combinations	3.8		103.1			106.9
Balance as of September 30, 2012	$	36.8	$	641.7		$	678.5

The accumulated impairment losses as of December 25, 2011 and September 30, 2012 were $165.4 million, of which $147.1 million was associated with the KGS segment and $18.3 million was associated with the PSS segment.


(b)	Purchased Intangible Assets

The following table sets forth information for finite-lived intangible assets subject to amortization (in millions):



	As of December 25, 2011							As of September 30, 2012
	Gross Value		Accumulated Amortization			Net Value		Gross Value		Accumulated Amortization			Net Value
Acquired finite-lived intangible assets:
Customer relationships	$	78.1	$	(19.8	)	$	58.3	$	97.7	$	(31.7	)	$	66.0
Contracts and backlog	60.1		(39.6		)	20.5		80.0		(58.0		)	22.0
Developed technology and technical know-how	22.1		(4.1		)	18.0		22.1		(5.8		)	16.3
Trade names	2.6		(0.8		)	1.8		3.1		(1.1		)	2.0
Favorable operating lease	1.8		(0.3		)	1.5		1.8		(0.4		)	1.4
Total	$	164.7	$	(64.6	)	$	100.1	$	204.7	$	(97.0	)	$	107.7

In addition to the finite-lived intangible assets listed in the table above, the Company has $24.5 million of indefinite-lived intangible assets consisting of trade names at both December 25, 2011 and September 30, 2012.

Consolidated amortization expense related to intangible assets subject to amortization was $11.9 million and $13.0 million for the three months ended September 25, 2011 and September 30, 2012, respectively, and $24.5 million and $32.4 million for the nine months ended September 25, 2011 and September 30, 2012, respectively.

The estimated future amortization expense of purchased intangible assets with finite lives as of September 30, 2012 is as follows (in millions):



Fiscal Year	Amount
2012 (remaining three months)	$	11.6
2013	34.7
2014	20.2
2015	14.4
2016	9.7
Thereafter	17.1
Total	$	107.7

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Inventoried Costs (Notes)

9 Months Ended

Sep. 30, 2012

Inventory Disclosure [Abstract]

Inventoried Costs

Inventoried costs are stated at the lower of cost or market. Cost is determined using the average cost or first-in, first-out method and is applied consistently within an operating entity. Inventoried costs primarily relate to work in process under fixed-price contracts using costs as the basis of the percentage-of-completion calculation under the units produced method of revenue recognition. These costs represent accumulated contract costs less the portion of such costs allocated to delivered items. Accumulated contract costs include direct production costs, factory and engineering overhead and production tooling costs. Pursuant to contract provisions of U.S. Government contracts, such customers may have title to, or a security interest in, inventories related to such contracts as a result of advances, performance-based payments or progress payments. The Company reflects those advances and payments as an offset against the related inventory balances.

The Company regularly reviews inventory quantities on hand, future purchase commitments with its suppliers, and the estimated utility of its inventory. If the Company’s review indicates a reduction in utility below carrying value, it reduces its inventory to a new cost basis.

Inventoried costs consisted of the following components (in millions):



	December 25, 2011			September 30, 2012
Raw materials	$	43.3		$	48.4
Work in process	25.7			41.9
Finished goods	6.9			7.8
Supplies and other	4.0			1.9
Subtotal inventoried costs	79.9			100.0
Less customer advances and progress payments	(3.3		)	(0.1		)
Total inventoried costs	$	76.6		$	99.9

Stockholders' Equity

9 Months Ended

Sep. 30, 2012

Equity [Abstract]

Stockholders' Equity

Stockholders’ Equity

On May 14, 2012, the Company sold 20.0 million shares of its common stock at a purchase price of $5.00 per share in an underwritten public offering. The Company received gross proceeds of $100.0 million. After deducting underwriting and other offering expenses, the Company received approximately $97.0 million in net proceeds. The Company used the net proceeds from this offering to fund a portion of the cash consideration paid to the stockholders of CEI in connection with the Company's acquisition thereof on July 2, 2012.

On February 11, 2011, the Company sold approximately 4.9 million shares of its common stock at a purchase price of $13.25 per share in an underwritten public offering. The Company received gross proceeds of approximately $64.8 million. After deducting underwriting and other offering expenses, the Company received approximately $61.1 million in net proceeds.

A summary of the changes in stockholders’ equity is provided below (in millions):



	Nine Months Ended			Nine Months Ended
	September 25, 2011			September 30, 2012
Stockholders’ equity at beginning of period	$	169.9		$	312.6
Comprehensive income:
Net loss	(15.6		)	(24.4		)
Foreign currency translation	0.1			(0.4		)
Total comprehensive loss	(15.5		)	(24.8		)
Additional paid-in-capital from the issuance of common stock for cash	61.1			97.0
Additional paid-in-capital from the issuance of common stock in connection with acquisitions	—			23.8
Stock-based compensation	2.3			4.6
Restricted stock units traded for taxes	(0.1		)	(0.2		)
Employee stock purchase plan and restricted stock units settled in cash	0.9			(0.4		)
Exercise of stock options and warrants	1.2			—
Fair value of stock options assumed in acquisitions	111.6			—
Stockholders’ equity at end of period	$	331.4		$	412.6

In prior reporting periods, the Company had two classes of outstanding stock, Series B Convertible Preferred Stock and common stock. On March 8, 2011, all of the 10,000 shares of the previously issued and outstanding shares of Series B Convertible Preferred Stock were redeemed for 100,000 shares of common stock. Common stock issued by the Company for the nine months ended September 25, 2011 and September 30, 2012 was as follows (in millions):



	Nine Months Ended	Nine Months Ended
	September 25, 2011	September 30, 2012
Shares outstanding at beginning of the period	18.6	32.4
Stock issued for employee stock purchase plan, stock options and restricted stock units exercised	0.4	0.1
Common stock issued for acquisitions	10.4	4.0
Redemption of Series B Convertible Preferred Stock	0.1	—
Common stock issued for cash	4.9	20.0
Shares outstanding at end of the period	34.4	56.5

- Definition

The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(d),(e))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB TOPIC 4.E)
-URI http://asc.fasb.org/extlink&oid=6228006&loc=d3e74512-122707

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.29-31)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SAB TOPIC 4.C)
-URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187143-122770

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187085-122770

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 43
-Section B
-Paragraph 7, 11A
-Chapter 1
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 12
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph d
-Article 4

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 29, 30, 31
-Article 5

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section E

Reference 20: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Article 4

Reference 21: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section C

Reference 22: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 129
-Paragraph 2, 3, 4, 5, 6, 7, 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 23: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

+ Details

Net Income (Loss) Per Common Share

9 Months Ended

Sep. 30, 2012

Earnings Per Share [Abstract]

Net Income (Loss) Per Common Share

The Company calculates net income (loss) per share in accordance with ASC Topic 260, Earnings Per Share (“Topic 260”). Under Topic 260, basic net income (loss) per common share is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding during the reporting period. Diluted net income (loss) per common share reflects the effects of potentially dilutive securities.



	For the Three Months Ended						For the Nine Months Ended
(In millions, except earnings per share)	September 25, 2011			September 30, 2012			September 25, 2011			September 30, 2012
Loss from continuing operations (A)	$	(7.2	)	$	(4.4	)	$	(16.3	)	$	(21.8	)
Weighted average outstanding shares of common stock (B)	30.8			56.6			25.3			43.8
Dilutive effect of employee stock options and awards	—			—			—			—
Common stock and common stock equivalents (C)	30.8			56.6			25.3			43.8
Loss per share:
Basic (A/B)	$	(0.23	)	$	(0.08	)	$	(0.64	)	$	(0.50	)
Diluted (A/C)	$	(0.23	)	$	(0.08	)	$	(0.64	)	$	(0.50	)

The following shares were excluded from the calculation of diluted loss per share because their inclusion would have been anti-dilutive:

For the Three Months Ended

For the Nine Months Ended

(In millions)

September 25,
2011

September 30,
2012

September 25,
2011

September 30,
2012

Shares from stock options and awards

2.8

4.3

2.0

3.3

Income Taxes

9 Months Ended

Sep. 30, 2012

Income Tax Disclosure [Abstract]

Income Taxes

As of December 25, 2011, the Company had $10.2 million of unrecognized tax benefits that, if recognized, would affect the effective tax rate, subject to possible offset by an increase in the valuation allowance. During the nine months ended September 30, 2012, this amount was reduced by $0.1 million relating to the expiration of statutes of limitations. This reduction in unrecognized tax benefits was recorded as a tax benefit from discontinued operations. Additionally, the unrecognized tax benefit amount was reduced by $0.3 million as a result of the completion of an Internal Revenue Service (“IRS”) audit. This reduction in unrecognized tax benefits was recorded as a benefit from continuing operations.

During the nine months ended September 30, 2012, the Company decreased the unrecognized tax benefits of Integral by $0.1 million, which was recorded as an adjustment to goodwill. Integral's unrecognized tax benefits are related to various federal tax issues.

The Company recognizes interest and penalties related to unrecognized tax benefits in its provision for income taxes. There was no material expense recorded during the nine months ended September 25, 2011. During the nine months ended September 30, 2012, a $0.3 million expense was recorded related to interest and penalties. The Company recorded a benefit for interest and penalties related to the reversal of prior positions of $0.7 million and $0.1 million for the nine months ended September 25, 2011 and September 30, 2012, respectively. The Company believes that it is reasonably possible that as much as $1.5 million of the liabilities for uncertain tax positions will expire within 12 months of September 30, 2012 due to the expiration of various applicable statutes of limitations.

The Company is subject to taxation in the U.S., various state tax jurisdictions and various foreign tax jurisdictions. The Company's tax years for 2000 and later are subject to examination by the U.S. and state tax authorities due to the existence of net operating loss (“NOL”) carryforwards. Generally, the Company's tax years for 2002 and later are subject to examination by various foreign tax authorities.

In assessing the Company's ability to realize deferred tax assets, management considers, on a periodic basis, whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. As such, management has determined that it is appropriate to maintain a full valuation allowance against the Company's deferred tax assets, with the exception of an amount equal to its deferred tax liabilities, which can be expected to reverse over a definite life. Management will continue to evaluate the necessity to maintain a valuation allowance against the Company's net deferred tax assets. A reconciliation of the total income tax provision to the amount computed by applying the statutory federal income tax rate of 35% to loss from continuing operations before income tax provision for the three and nine months ended September 25, 2011 and September 30, 2012 is as follows (in millions):



	For the Three Months Ended						For the Nine Months Ended
	September 25, 2011			September 30, 2012			September 25, 2011			September 30, 2012
Income tax benefit at federal statutory rate	$	(1.9	)	$	(0.9	)	$	(5.2	)	$	(6.3	)
State and foreign taxes, net of federal tax benefit and valuation allowance	1.5			1.0			3.1			3.5
Nondeductible expenses and other	0.6			1.3			2.2			2.0
Release of valuation allowance due to acquisitions	—			—			(0.1		)	—
Impact of indefinite lived deferred tax liabilities and state law changes	—			0.1			0.3			0.2
Settlement with IRS	—			—			(2.1		)	—
Increase/(decrease) in reserves for uncertain tax positions	0.1			0.1			0.1			0.1
Increase/(decrease) in federal valuation allowance	1.3			(0.3		)	3.0			4.3
Total	$	1.6		$	1.3		$	1.3		$	3.8

Federal and state income tax laws impose restrictions on the utilization of NOL and tax credit carryforwards in the event that an “ownership change” occurs for tax purposes, as defined by Section 382 (“Section 382”) of the Internal Revenue Code of 1986, as amended (the “Code”). In general, an ownership change occurs when shareholders owning 5% or more of a “loss corporation” (a corporation entitled to use NOL or other loss carryovers) have increased their ownership of stock in such corporation by more than 50 percentage points during any 3-year period. The annual base Section 382 limitation is calculated by multiplying the loss corporation's value (which may be modified for certain recent increases to capital) at the time of the ownership change times the greater of the long-term tax-exempt rate determined by the Internal Revenue Service (“IRS”) in the month of the ownership change or the two preceding months. In March 2010, an “ownership change” occurred that will limit the utilization of the loss carryforwards. Additionally, in May 2012, another “ownership change” was triggered. As a result of this change in May, the Company's federal annual utilization of NOL carryforwards will be limited to $28.1 million a year for the five years succeeding the initial ownership change and $11.6 million per year thereafter. If the entire limitation amount is not utilized in a year, the excess can be carried forward and utilized in future years. For the nine months ended September 30, 2012, there was no impact of such limitations on the income tax provision since the amount of taxable income did not exceed the annual limitation amount. In addition, future equity offerings or acquisitions that have equity as a component of the purchase price could also result in an “ownership change." If and when any other “ownership change” occurs, utilization of the NOL or other tax attributes may be further limited. As discussed elsewhere, deferred tax assets relating to the NOL and credit carryforwards are offset by a full valuation allowance. In addition, utilization of state tax loss carryforwards is dependent upon sufficient taxable income apportioned to the states.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

+ Details

Discontinued Operations

9 Months Ended

Sep. 30, 2012

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

In June of 2012, consistent with the Company's plans to complete its assessment and evaluation of the non-core businesses acquired in the Integral acquisition, the Company committed to a plan to sell certain lines of business associated with antennas, satellite-cased products and fly-away terminals. These operations were previously reported in the KGS segment, and in accordance with Topic 205, Presentation of Financial Statements ("Topic 205"), these businesses have been classified as held for sale and reported in discontinued operations in the accompanying condensed consolidated financial statements. In the second quarter of 2012, the Company recorded a $1.5 million impairment charge associated with the portion of goodwill that was allocated to the discontinued businesses based on management's estimate of the fair value of the business.

The following table presents the results of discontinued operations (in millions):



	For the Three Months Ended				For the Nine Months Ended
	September 25, 2011		September 30, 2012		September 25, 2011			September 30, 2012
Revenue	$	4.4	$	6.0	$	4.4		$	13.3
Net income (loss) before taxes	0.3		0.2		0.4			(2.7		)
Benefit for income taxes	—		—		(0.3		)	(0.1		)
Net income (loss) after taxes	$	0.3	$	0.2	$	0.7		$	(2.6	)

The benefit for income taxes for the nine months ended September 25, 2011 and September 30, 2012 was primarily due to the expiration of the statute of limitations for certain foreign tax contingencies related to the Company’s discontinued wireless services business.

The following is a summary of the assets and liabilities of discontinued operations, which are in other current assets, other non-current assets, other current liabilities and other long-term liabilities in the accompanying Condensed Consolidated Balance Sheets as of December 25, 2011 and September 30, 2012 (in millions):



	December 25, 2011		September 30, 2012
Cash	$	0.2	$	0.2
Accounts receivable, net	5.3		1.8
Other current assets	4.2		3.9
Current assets of discontinued operations	$	9.7	$	5.9
Other non-current assets	$	2.4	$	0.8
Non-current assets of discontinued operations	$	2.4	$	0.8
Accounts payable	$	0.9	$	1.4
Accrued expenses	5.1		4.1
Other current liabilities	0.3		0.3
Current liabilities of discontinued operations	$	6.3	$	5.8
Other long-term liabilities	0.5		0.3
Long-term liabilities of discontinued operations	$	0.5	$	0.3

- Definition

The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1361-107760

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1436-107760

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1510-107760

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1474-107760

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1020-107759

Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e957-107759

Reference 7: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 205
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-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1012-107759

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
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-URI http://asc.fasb.org/extlink&oid=8077374&loc=d3e2443-110228

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6391110&loc=d3e2941-110230

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 144
-Paragraph 43-48
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Debt

9 Months Ended

Sep. 30, 2012

Debt Disclosure [Abstract]

Debt


(a)	Issuance of 10% Senior Secured Notes due 2017

On May 19, 2010, the Company entered into an indenture with the guarantors set forth therein and Wilmington Trust FSB, as trustee and collateral agent (as amended or supplemented the “Indenture”), to issue the Notes. As of September 30, 2012, the Company has issued Notes in the aggregate principal amount of $625.0 million under the Indenture, of which $225.0 million were issued on May 19, 2010, $285.0 million were issued on March 25, 2011 at a $20.0 million premium and an effective interest rate of 8.5%, and $115.0 million were issued on July 27, 2011 at a $5.8 million premium and an effective interest rate of 8.9%. These Notes have been used to fund acquisitions and for general corporate purposes. The holders of the Notes have a first priority lien on substantially all of the Company's assets and the assets of the guarantors, except with respect to accounts receivable, inventory, deposit accounts, securities accounts, cash, securities and general intangibles (other than intellectual property), on which the holders of the Notes have a second priority lien to the $110.0 million credit facility described below.

The Company pays interest on the Notes semi-annually, in arrears, on June 1 and December 1 of each year. The Notes include customary covenants and events of default as well as a consolidated fixed charge ratio of 2:1 for the incurrence of additional indebtedness. Negative covenants include, among other things, limitations on additional debt, liens, negative pledges, investments, dividends, stock repurchases, asset sales and affiliate transactions. Events of default include, among other events, non-performance of covenants, breach of representations, cross-default to other material debt, bankruptcy, insolvency, material judgments and changes in control. As of September 30, 2012, the Company was in compliance with the covenants contained in the Indenture governing the Notes.

On or after June 1, 2014, the Company may redeem some or all of the Notes at 105% of the aggregate principal amount of such notes through June 1, 2015, 102.5% of the aggregate principal amount of such notes through June 1, 2016 and 100% of the aggregate principal amount of such notes thereafter, plus accrued and unpaid interest to the date of redemption. Prior to June 1, 2013, the Company may redeem up to 35% of the aggregate principal amount of the Notes at 110% of the aggregate principal amount of the Notes, plus accrued and unpaid interest to the date of redemption, with the net cash proceeds of certain equity offerings. In addition, the Company may, at its option, redeem some or all of the Notes at any time prior to June 1, 2014 by paying a “make whole” premium, plus accrued and unpaid interest, if any, to the date of redemption. The Company may also purchase outstanding Notes traded on the open market at any time.


(b)	Other Indebtedness

$110.0 Million Credit Facility

On July 27, 2011, the Company entered into a credit and security agreement with KeyBank National Association (“KeyBank”), as lead arranger, sole book runner and administrative agent, and East West Bank and Bank of the West, as the lenders (the “2011 Credit Agreement”). The 2011 Credit Agreement amends and restates in its entirety the credit and security agreement, dated as of May 19, 2010, by and among the Company, KeyBank and the lenders named therein (as amended). The 2011 Credit Agreement established a five-year senior secured revolving credit facility in the amount of $65.0 million (as amended and described below, the “Amended Revolver”). The Amended Revolver is secured by a lien on substantially all of the Company's assets and the assets of the guarantors thereunder, subject to certain exceptions and permitted liens. The Amended Revolver has a first priority lien on accounts receivable, inventory, deposit accounts, securities accounts, cash, securities and general intangibles (other than intellectual property). On all other assets, the Amended Revolver has a second priority lien junior to the lien securing the Notes.

Borrowings under the Amended Revolver are subject to mandatory prepayment upon the occurrence of certain events, including the issuance of certain securities, the incurrence of certain debt and the sale or other disposition of certain assets. The Amended Revolver includes customary affirmative and negative covenants and events of default, as well as a financial covenant relating to a minimum fixed charge coverage ratio of 1.25. Negative covenants include, among other things, limitations on additional debt, liens, negative pledges, investments, dividends, stock repurchases, asset sales and affiliate transactions. Events of default include, among other events, non-performance of covenants, breach of representations, cross-default to other material debt, bankruptcy and insolvency, material judgments and changes in control.

On November 14, 2011, the Company entered into a first amendment (the “First Amendment”) with certain lenders and KeyBank which amended the 2011 Credit Agreement. Among other things, the First Amendment: (i) increased the amount of the Amended Revolver from $65.0 million to $90.0 million; (ii) added to and modified the definitions of certain terms contained in the 2011 Credit Agreement; (iii) added PNC Bank, National Association as a lender under the 2011 Credit Agreement; and (iv) updated certain schedules to the 2011 Credit Agreement.

On May 4, 2012, the Company entered into a second amendment (the "Second Amendment") to the 2011 Credit Agreement. Among other things, the Second Amendment (i) increased the amount of the Amended Revolver from $90.0 million to $110.0 million, (ii) added to and modified the definitions of certain terms contained in the 2011 Credit Agreement, (iii) added Cathay Bank as a lender under the 2011 Credit Agreement, (iv) increased the maximum available to be borrowed under the 2011 Credit Agreement to $135.0 million subject to KeyBank's approval, and (v) updated certain schedules to the Credit Agreement.

On May 8, 2012, the Company entered into a third amendment (the "Third Amendment") to the 2011 Credit Agreement. Under the terms of the Third Amendment, the definitions of certain terms of the 2011 Credit Agreement were modified and the acquisition of CEI was approved. The Company used the net proceeds from the sale of 20.0 million shares of its common stock, together with the borrowings under its credit facility, to fund the purchase of CEI on July 2, 2012 and to pay related fees and expenses.

The amounts of borrowings that may be made under the Amended Revolver are based on a borrowing base and are comprised of specified percentages of eligible receivables, eligible unbilled receivables and eligible inventory. If the amount of borrowings outstanding under the Amended Revolver exceeds the borrowing base then in effect, the Company is required to repay such borrowings in an amount sufficient to eliminate such excess. The Amended Revolver includes $50.0 million of availability for letters of credit and $10.0 million of availability for swing line loans.

The Company may borrow funds under the Amended Revolver at a rate based either on LIBOR or a base rate established by KeyBank. Base rate borrowings bear interest at an applicable margin of 1.00% to 1.75% over the base rate (which will be the greater of the prime rate or 0.5% over the federal funds rate, with a floor of 1.0% over one month LIBOR). LIBOR rate borrowings will bear interest at an applicable margin of 3.00% to 3.75% over the LIBOR rate. The applicable margin for base rate borrowings and LIBOR borrowings will depend on the average monthly revolving credit availability. The Amended Revolver also has a commitment fee of 0.50% to 0.75%, depending on the average monthly revolving credit availability. As of September 30, 2012, there were no outstanding borrowings on the Amended Revolver and $13.0 million was outstanding on letters of credit resulting in net borrowing base availability of $88.9 million. The Company was in compliance with the financial covenants as of September 30, 2012.

Debt Acquired in Acquisition of Herley

The Company assumed a $10.0 million 10-year term loan with a bank in Israel that Herley entered into on September 16, 2008 in connection with the acquisition of one of its wholly owned subsidiaries. The balance as of September 30, 2012 was $6.0 million, and the loan is payable in quarterly installments of $0.3 million plus interest at LIBOR plus a margin of 1.5%. The loan agreement contains various covenants, including a minimum net equity covenant as defined in the loan agreement. The Company was in compliance with all covenants, including the minimum net equity covenant, as of September 30, 2012.

Fair Value of Long-term Debt

Carrying amounts and the related estimated fair values of the Company’s long-term debt financial instruments not measured at fair value on a recurring basis at December 25, 2011 and September 30, 2012 are presented in the following table:



	As of December 25, 2011						As of September 30, 2012
$ in millions	Principal		Carrying Amount		Fair Value		Principal		Carrying Amount		Fair Value
Long-term debt	$	631.8	$	654.6	$	642.7	$	631.0	$	650.7	$	678.2

The fair value of the Company’s long-term debt was based upon actual trading activity (Level 1, Observable inputs —quoted prices in active markets) and is the estimated amount the Company would have to pay to repurchase its debt, including any premium or discount attributable to the difference between the stated interest rate and market value of interest at the balance sheet date.

The net unamortized debt premium of $19.7 million as of September 30, 2012, which is the difference between the carrying amount of $650.7 million and the principal amount of $631.0 million represented in the previous table, is being amortized to interest expense over the terms of the related debt.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References + Details

Fair Value of Financial Instruments	9 Months Ended
Fair Value of Financial Instruments	Sep. 30, 2012
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments The carrying amounts and the related estimated fair values of the Company's long-term debt financial instruments not measured at fair value on a recurring basis at December 25, 2011 and September 30, 2012 are presented in Note 9. The carrying value of all other financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and short-term debt, approximated their estimated fair values at December 25, 2011 and September 30, 2012.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

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+ Details

Derivatives	9 Months Ended
Derivatives	Sep. 30, 2012
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives	Derivatives The Company used derivative financial instruments, in particular, interest rate swaps, to reduce the it’s exposure to certain previously outstanding variable rate debt. The primary objective of the interest rate swaps was to eliminate the variability of cash flows and interest rate risk for payments made on variable rate debt, the sole source of which is due to changes in the benchmark three month LIBOR interest rate. Changes in the cash flows of the interest rate swap were expected to exactly offset the changes in cash flows (i.e., changes in interest rate payments) attributable to fluctuations in the three-month LIBOR on certain previously outstanding variable-rate debt. The Company records derivatives at their fair value. The classification of gains and losses resulting from changes in the fair values of derivatives is dependent on the Company’s intended use of the derivative and its resulting designation as effective or ineffective. Adjustments to reflect changes in fair values of derivatives that the Company considers highly effective hedges are either reflected in earnings and largely offset by corresponding adjustments to the hedged items, or reflected net of income taxes in accumulated other comprehensive income (loss) until the hedged transaction is recognized in earnings, to the extent these derivatives are effective hedges. Changes in the fair value of these derivatives that are attributable to the ineffective portion of the hedges, or of derivatives that are not considered to be highly effective hedges, if any, are immediately recognized in earnings. There were no interest rate swaps outstanding as of and for the nine months ended September 30, 2012. The Company's derivative financial instruments, which were cash flow hedges, were considered ineffective as a result of the interest rate floor that occurred with the first amendment of the first credit facility with KeyBank of $85.0 million in March 2008. The effect of marking the derivative instruments to market for the nine months ended September 25, 2011 was income of $0.3 million. There were no derivative liabilities outstanding as of December 25, 2011 or September 30, 2012.

- Definition

The entire disclosure for the entity's entire derivative instruments and hedging activities. Describes an entity's risk management strategies, derivatives in hedging activities and non-hedging derivative instruments, the assets, obligations, liabilities, revenues and expenses arising therefrom, and the amounts of and methodologies and assumptions used in determining the amounts of such items.

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+ Details

Significant Customers	9 Months Ended
Significant Customers	Sep. 30, 2012
Segment Reporting [Abstract]
Significant Customers	Significant Customers Revenue from the U.S. Government, which includes foreign military sales, includes revenue 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. The KGS segment has substantial revenue from the U.S. Government. Sales to the U.S. Government amounted to approximately $157.9 million and $162.9 million, or 75% and 59%, of total revenue for the three months ended September 25, 2011 and September 30, 2012, respectively, and approximately $374.4 million and $443.8 million, or 74% and 63%, of total revenue for the nine months ended September 25, 2011 and September 30, 2012, respectively. The U.S. Government continues to focus on developing and implementing spending, tax, and other initiatives to reduce the deficit, create jobs, and stimulate the economy. Although defense spending is expected to remain a national priority within future federal budgets, the Budget Control Act of 2011 (“Budget Control Act”) committed the U.S. Government to reduce the federal deficit over the next ten years. Under the Budget Control Act, the Bi-Partisan Congressional Joint Select Committee on Deficit Reduction (“the Joint Committee”) was responsible for identifying $1.2 to $1.5 trillion in deficit reductions by November 30, 2011. The Joint Committee was unable to identify the reductions by this deadline and thereby triggered a provision of the Budget Control Act called “sequestration,” which requires very substantial automatic spending cuts that will start in 2013 and be split between defense and non-defense programs and continue over a nine-year period. Any automatic reductions in national defense programs could impact the Company's significant customers. The impact of the Budget Control Act remains unknown, and the Company's business and industry could be adversely affected.

Segment Information

9 Months Ended

Sep. 30, 2012

Segment Reporting [Abstract]

Segment Information

The Company operates in two principal business segments: Kratos Government Solutions and Public Safety & Security. The Company organizes its business segments based on the nature of the services offered. In the following table, total operating income of the 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 shares 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 operating segments, and other miscellaneous corporate activities. Transactions between segments are generally negotiated and accounted for under terms and conditions similar to other government and commercial contracts.

Revenues, operating income, and assets generated or held by the Company’s current reporting segments for the three and nine months ended September 25, 2011 and September 30, 2012 are as follows (in millions):



	Three Months Ended						Nine Months Ended
	September 25, 2011			September 30, 2012			September 25, 2011			September 30, 2012
Revenues:
Kratos Government Solutions	$	174.2		$	223.5		$	416.9		$	568.2
Public Safety & Security	32.4			52.8			83.6			137.4
Total revenues	$	206.6		$	276.3		$	500.5		$	705.6
Operating income:
Kratos Government Solutions	$	10.5		$	14.0		$	26.8		$	32.4
Public Safety & Security	3.7			3.3			6.6			7.3
Unallocated corporate expense, net	(4.5		)	(3.2		)	(13.6		)	(9.1		)
Total operating income	$	9.7		$	14.1		$	19.8		$	30.6



	As of		As of
	December 25, 2011		September 30, 2012
Assets:
Kratos Government Solutions	$	1,028.8	$	1,187.8
Public Safety & Security	88.6		127.7
Discontinued operations	12.2		6.8
Corporate activities	86.4		50.6
Total assets	$	1,216.0	$	1,372.9

The increase in the assets in the KGS and PSS segments are primarily attributable to the acquisitions of CEI on July 2, 2012 and the Critical Infrastructure Business on December 30, 2011.

- 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.

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+ Details

Commitments and Contingencies

9 Months Ended

Sep. 30, 2012

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies


(a)	Legal Matters

For additional information regarding the Company's legal proceedings, see Item 3, “Legal Proceedings” in the Form 10-K.

Integral, which we acquired on July 27, 2011, was previously the subject of a SEC investigation. On July 30, 2009, the SEC and Integral each announced that an administrative settlement had been reached concluding the SEC's investigation.

In conjunction with its announcement of the administrative settlement, the SEC disclosed that it was instituting separate civil actions against three former officers of Integral, Steven R. Chamberlain (now deceased), Elaine M. Brown and Gary A. Prince in a case filed July 30, 2009 captioned United States Securities and Exchange Commission v. Steven R. Chamberlain, Elaine M. Brown, and Gary A. Prince, Case No. 09-CV-01423, pending in the United States District Court for the District of Columbia. The SEC's complaint alleges that from 1999 through August 2006, Chamberlain, Brown and Prince made materially false and misleading statements and omitted material information in various filings with the SEC by failing to disclose the role of Prince, who had been convicted of engaging in securities fraud while at another company, at Integral and his legal background in its filings. The SEC sought permanent injunctions against each defendant, as well as court orders imposing officer and director bars and civil penalties. Integral has indemnification obligations to these individuals, as well as other former directors and officers of Integral who may incur indemnifiable costs in connection with these actions, pursuant to the terms of separate indemnification agreements entered into with each of them effective as of December 4, 2002. As a result of the acquisition of Integral, we have assumed these indemnification obligations. The indemnification agreements each provide, subject to certain terms and conditions, that we shall indemnify the individual to the fullest extent permissible by Maryland law against judgments, penalties, fines, settlements and reasonable expenses actually incurred in the event that the individual is made a party to a legal proceeding by reason of his or her present or prior service as an officer or employee of Integral, and shall also advance reasonable litigation expenses actually incurred subject to, among other conditions, receipt of a written undertaking to repay any costs or expenses advanced if it shall ultimately be determined that the individual has not met the standard of conduct required for indemnification under Maryland law. Certain costs and expenses were previously covered under Integral's applicable directors and officers liability insurance policy. The policy limits were exhausted in December 2011, and we are advancing payment of indemnifiable costs pursuant to the indemnification agreements. The case is scheduled for trial in December 2012.

From time to time, the Company may become involved in various claims, lawsuits and legal proceedings that arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm the Company's business. The Company is currently not aware of any such legal proceedings or claims that it believes will have, individually or in the aggregate, a material adverse effect on the Company's business, financial condition, operating results or cash flows. The aggregate amounts accrued related to these matters are not material to the total liabilities of the Company.


(b)	Warranty

Certain of the Company’s products, product finishes, and services are covered by a warranty to be free from defects in material and workmanship for periods ranging from one to ten years. Optional extended warranty contracts can also be purchased with the revenue deferred and amortized over the extended warranty period. The Company accrues a warranty liability for estimated costs to provide products, parts or services to repair or replace products in satisfaction of warranty obligations. Warranty revenues related to extended warranty contracts are amortized to income, over the life of the contract, using the straight-line method. Costs under extended warranty contracts are expensed as incurred.

The Company’s estimate of costs to service its warranty obligations is based upon historical experience and expectations of future conditions. To the extent that the Company experiences any changes in warranty claim activity or costs associated with servicing those claims, its warranty liability is adjusted accordingly.

The changes in the Company's aggregate product warranty liabilities, which are included in other current liabilities and other long term-liabilities on the Company's Condensed Consolidated Balance Sheets, were as follows (in millions):



	Nine Months Ended
	September 25, 2011			September 30, 2012
Balance, at beginning of the period	$	1.9		$	4.6
Costs accrued and revenues deferred	0.4			—
Warranty liabilities assumed from acquisitions	—			1.2
Settlements made (in cash or kind) and revenues recognized	(0.4		)	(0.7		)
Balance, at end of period	1.9			5.1
Less: Current portion	1.6			—
Non-current accrued product warranty and deferred warranty revenue	$	0.3		$	5.1

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6398077&loc=d3e12565-110249

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14435-108349

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.25)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 440
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6394976&loc=d3e25287-109308

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Condensed Consolidating Financial Statements

9 Months Ended

Sep. 30, 2012

Condensed Consolidating Financial Statements [Abstract]

Condensed Consolidating Financial Statements

The Company has $625.0 million in outstanding Senior Secured Notes see Note 9. The Notes are guaranteed by all of the Company's 100% owned domestic subsidiaries (the "Subsidiary Guarantors") and are collateralized by the assets of all of the Company's 100% owned subsidiaries. The Notes are fully and unconditionally guaranteed on a joint and several basis by each guarantor subsidiary and the Company. There are no contractual restrictions limiting cash transfers from guarantor subsidiaries by dividends, loans or advances to the Company. The Senior Secured Notes are not guaranteed by the Company's foreign subsidiaries (the “Non-Guarantor Subsidiaries”).

The following tables present condensed consolidated financial statements for the parent company, the Subsidiary Guarantors and the Non-Guarantor Subsidiaries, respectively. The consolidating financial information below follows the same accounting policies as described in the consolidated financial statements, except for the use of the equity method of accounting to reflect ownership interests in wholly-owned subsidiaries, which are eliminated upon consolidation.

Condensed Consolidating Balance Sheet December 25, 2011 (Unaudited)

	Parent Company		Guarantors on a Combined Basis		Non-Guarantors on a Combined Basis		Eliminations			Consolidated
Assets
Current Assets:
Cash and cash equivalents	$	52.6	$	2.8	$	14.2	$	—		$	69.6
Accounts receivable, net	—		225.4		19.9		—			245.3
Amounts due from affiliated companies	449.3		—		—		(449.3		)	—
Inventoried costs	—		64.2		12.4		—			76.6
Other current assets	3.3		22.1		4.1		—			29.5
Total current assets	505.2		314.5		50.6		(449.3		)	421.0
Property, plant and equipment, net	1.2		62.2		9.1		—			72.5
Goodwill	—		551.1		20.5		—			571.6
Intangible assets, net	—		119.8		4.8		—			124.6
Investment in subsidiaries	466.0		8.8		—		(474.8		)	—
Amounts due from affiliated companies	—		26.0		—		(26.0		)	—
Other assets	21.5		4.0		0.8		—			26.3
Total assets	$	993.9	$	1,086.4	$	85.8	$	(950.1	)	$	1,216.0
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	8.5	$	37.5	$	2.8	$	—		$	48.8
Accrued expenses	2.4		50.4		3.0		—			55.8
Accrued compensation	3.7		33.3		2.8		—			39.8
Billings in excess of costs and earnings on uncompleted contracts	—		34.3		1.9		—			36.2
Amounts due to affiliated companies	—		418.9		30.4		(449.3		)	—
Other current liabilities	13.5		17.4		2.3		—			33.2
Total current liabilities	28.1		591.8		43.2		(449.3		)	213.8
Long-term debt, net of current portion	647.8		—		5.8		—			653.6
Amounts due to affiliated companies	—		—		26.0		(26.0		)	—
Other long-term liabilities	5.4		28.6		2.0		—			36.0
Total liabilities	681.3		620.4		77.0		(475.3		)	903.4
Total stockholders' equity	312.6		466.0		8.8		(474.8		)	312.6
Total liabilities and stockholders' equity	$	993.9	$	1,086.4	$	85.8	$	(950.1	)	$	1,216.0

Condensed Consolidating Balance Sheet September 30, 2012 (Unaudited)

	Parent Company		Guarantors on a Combined Basis			Non-Guarantors on a Combined Basis		Eliminations			Consolidated
Assets
Current Assets:
Cash and cash equivalents	$	20.9	$	(1.3	)	$	18.0	$	—		$	37.6
Accounts receivable, net	—		262.7			18.7		—			281.4
Amounts due from affiliated companies	509.9		—			—		(509.9		)	—
Inventoried costs	—		82.1			17.8		—			99.9
Other current assets	10.9		23.5			3.3		—			37.7
Total current assets	541.7		367.0			57.8		(509.9		)	456.6
Amounts due from affiliated companies, long-term	—		26.0			—		(26.0		)	—
Property, plant and equipment, net	1.3		73.9			9.4		—			84.6
Goodwill	—		658.0			20.5		—			678.5
Intangible assets, net	—		129.1			3.1		—			132.2
Investment in subsidiaries	542.2		14.6			—		(556.8		)	—
Other assets	18.5		1.7			0.8		—			21.0
Total assets	$	1,103.7	$	1,270.3		$	91.6	$	(1,092.7	)	$	1,372.9
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	5.0	$	70.0		$	6.0	$	—		$	81.0
Accrued expenses	$	3.0	$	67.8		$	2.6	$	—		$	73.4
Accrued compensation	3.8		36.0			2.1		—			41.9
Billings in excess of costs and earnings on uncompleted contracts	—		40.0			4.0		—			44.0
Amounts due to affiliated companies	—		480.7			29.2		(509.9		)	—
Other current liabilities	32.5		1.3			—		—			33.8
Total current liabilities	44.3		695.8			43.9		(509.9		)	274.1
Long-term debt, net of current portion	644.7		—			5.0		—			649.7
Amounts due to affiliated companies	—		—			26.0		(26.0		)	—
Other long-term liabilities	2.1		32.3			2.1		—			36.5
Total liabilities	691.1		728.1			77.0		(535.9		)	960.3
Total stockholders' equity	412.6		542.2			14.6		(556.8		)	412.6
Total liabilities and stockholders' equity	$	1,103.7	$	1,270.3		$	91.6	$	(1,092.7	)	$	1,372.9

Condensed Consolidating Statement of Operations and Comprehensive Income Three Months Ended September 25, 2011 (Unaudited)

	Parent Company			Guarantors on a Combined Basis			Non-Guarantors on a Combined Basis			Eliminations			Consolidated
Service revenues	$	—		$	92.4		$	0.8		$	—		$	93.2
Product sales	—			101.4			15.7			(3.7		)	113.4
Total revenues	—			193.8			16.5			(3.7		)	206.6
Cost of service revenues	—			68.0			0.6			—			68.6
Cost of product sales	—			72.4			10.3			(3.7		)	79.0
Total costs	—			140.4			10.9			(3.7		)	147.6
Gross profit	—			53.4			5.6			—			59.0
Selling, general and administrative expenses	4.7			36.7			4.7			—			46.1
Research and development expenses	—			3.0			0.2			—			3.2
Operating income from continuing operations	(4.7		)	13.7			0.7			—			9.7
Other income (expense):
Interest expense, net	15.0			(0.3		)	0.3			—			15.0
Other income, net	—			(0.1		)	0.4			—			0.3
Total other income and expense, net	15.0			(0.4		)	0.7			—			15.3
Income (loss) from continuing operations before income taxes	(19.7		)	14.1			—			—			(5.6		)
Provision for income taxes from continuing operations	—			1.3			0.3			—			1.6
Income (loss) from continuing operations	(19.7		)	12.8			(0.3		)	—			(7.2		)
Income from discontinued operations	—			0.3			—			—			0.3
Equity in net income (loss) of subsidiaries	12.8			(0.3		)	—			(12.5		)	—
Net income (loss)	$	(6.9	)	$	12.8		$	(0.3	)	$	(12.5	)	$	(6.9	)
Comprehensive income (loss)	$	(6.9	)	$	12.8		$	(0.2	)	$	(12.5	)	$	(6.8	)

Condensed Consolidating Statement of Operations and Comprehensive Income Nine Months Ended September 25, 2011 (Unaudited)

	Parent Company			Guarantors on a Combined Basis			Non-Guarantors on a Combined Basis		Eliminations			Consolidated
Service revenues	$	—		$	247.5		$	0.8	$	—		$	248.3
Product sales	—			228.4			31.2		(7.4		)	252.2
Total revenues	—			475.9			32.0		(7.4		)	500.5
Cost of service revenues	—			186.3			0.6		—			186.9
Cost of product sales	—			169.1			20.1		(7.4		)	181.8
Total costs	—			355.4			20.7		(7.4		)	368.7
Gross profit	—			120.5			11.3		—			131.8
Selling, general and administrative expenses	14.4			83.2			9.4		—			107.0
Research and development expenses	—			4.6			0.4		—			5.0
Operating income from continuing operations	(14.4		)	32.7			1.5		—			19.8
Other income (expense):
Interest expense, net	34.6			(0.2		)	0.4		—			34.8
Other income, net	(0.3		)	(0.2		)	0.5		—			—
Total other income and expense, net	34.3			(0.4		)	0.9		—			34.8
Income (loss) from continuing operations before income taxes	(48.7		)	33.1			0.6		—			(15.0		)
Provision for income taxes from continuing operations	—			0.9			0.4		—			1.3
Income (loss) from continuing operations	(48.7		)	32.2			0.2		—			(16.3		)
Income from discontinued operations	—			0.4			0.3		—			0.7
Equity in net income (loss) of subsidiaries	33.1			0.5			—		(33.6		)	—
Net income (loss)	$	(15.6	)	$	33.1		$	0.5	$	(33.6	)	$	(15.6	)
Comprehensive income (loss)	$	(15.6	)	$	33.1		$	0.6	$	(33.6	)	$	(15.5	)

Condensed Consolidating Statement of Operations and Comprehensive Income Three Months Ended September 30, 2012 (Unaudited)

	Parent Company			Guarantors on a Combined Basis			Non-Guarantors on a Combined Basis			Eliminations			Consolidated
Service revenues	$	—		$	124.9		$	0.7		$	—		$	125.6
Product sales	—			136.8			17.0			(3.1		)	150.7
Total revenues	—			261.7			17.7			(3.1		)	276.3
Cost of service revenues	—			97.8			0.5			—			98.3
Cost of product sales	—			96.1			10.9			(3.1		)	103.9
Total costs	—			193.9			11.4			(3.1		)	202.2
Gross profit	—			67.8			6.3			—			74.1
Selling, general and administrative expenses	4.5			47.2			3.8			—			55.5
Research and development expenses	—			4.3			0.2			—			4.5
Operating income from continuing operations	(4.5		)	16.3			2.3			—			14.1
Other income (expense):
Interest expense, net	17.6			(0.1		)	0.1			—			17.6
Other income, net	—			0.1			(0.5		)	—			(0.4		)
Total other income and expense, net	17.6			—			(0.4		)	—			17.2
Income (loss) from continuing operations before income taxes	(22.1		)	16.3			2.7			—			(3.1		)
Provision for income taxes from continuing operations	—			0.9			0.4			—			1.3
Income (loss) from continuing operations	(22.1		)	15.4			2.3			—			(4.4		)
Income (loss) from discontinued operations	—			(0.5		)	0.7			—			0.2
Equity in net income (loss) of subsidiaries	17.9			3.0			—			(20.9		)	—
Net income (loss)	$	(4.2	)	$	17.9		$	3.0		$	(20.9	)	$	(4.2	)
Comprehensive income (loss)	$	(4.2	)	$	17.9		$	3.2		$	(20.9	)	$	(4.0	)

Condensed Consolidating Statement of Operations and Comprehensive Income Nine Months Ended September 30, 2012 (Unaudited)

	Parent Company			Guarantors on a Combined Basis			Non-Guarantors on a Combined Basis			Eliminations			Consolidated
Service revenues	$	—		$	337.9		$	1.9		$	—		$	339.8
Product sales	—			329.4			46.0			(9.6		)	365.8
Total revenues	—			667.3			47.9			(9.6		)	705.6
Cost of service revenues	—			263.5			1.3			—			264.8
Cost of product sales	—			231.0			30.2			(9.6		)	251.6
Total costs	—			494.5			31.5			(9.6		)	516.4
Gross profit	—			172.8			16.4			—			189.2
Selling, general and administrative expenses	9.3			126.1			10.3			—			145.7
Research and development expenses	—			12.2			0.7			—			12.9
Operating income from continuing operations	(9.3		)	34.5			5.4			—			30.6
Other income (expense):
Interest expense, net	49.7			(0.2		)	0.4			—			49.9
Other income, net	(0.3		)	—			(1.0		)	—			(1.3		)
Total other income and expense, net	49.4			(0.2		)	(0.6		)	—			48.6
Income (loss) from continuing operations before income taxes	(58.7		)	34.7			6.0			—			(18.0		)
Provision for income taxes from continuing operations	—			3.1			0.7						3.8
Income (loss) from continuing operations	(58.7		)	31.6			5.3			—			(21.8		)
Income (loss) from discontinued operations	—			(3.3		)	0.7			—			(2.6		)
Equity in net income (loss) of subsidiaries	34.3			6.0			—			(40.3		)	—
Net income (loss)	$	(24.4	)	$	34.3		$	6.0		$	(40.3	)	$	(24.4	)
Comprehensive income (loss)	$	(24.4	)	$	34.3		$	6.4		$	(40.3	)	$	(24.0	)

Condensed Consolidating Statement of Cash Flows Nine Months Ended September 25, 2011 (Unaudited)

	Parent Company			Guarantors on a Combined Basis			Non-Guarantors on a Combined Basis			Eliminations		Consolidated
Net cash provided by (used in) operating activities	$	(17.1	)	$	29.1		$	0.6		$	—	$	12.6
Investing activities:
Cash paid for acquisitions, net of cash acquired	(373.8		)	—			—			—		(373.8		)
Decrease in restricted cash	1.3			2.0			—			—		3.3
Capital expenditures	(0.2		)	(3.7		)	(1.4		)	—		(5.3		)
Net cash used in investing activities from continuing operations	(372.7		)	(1.7		)	(1.4		)	—		(375.8		)
Financing activities:
Proceeds from the issuance of long-term debt	427.5			—			—			—		427.5
Proceeds from the issuance of common stock	61.1						—			—		61.1
Debt issuance costs	(20.6		)				—			—		(20.6		)
Repayment of debt	—			(2.0		)	(0.5		)	—		(2.5		)
Financing from affiliated companies	(27.0		)	24.9			2.1			—		—
Other, net	2.0			(0.5		)	—			—		1.5
Net cash provided by financing activities from continuing operations	443.0			22.4			1.6			—		467.0
Net cash flows of continuing operations	53.2			49.8			0.8			—		103.8
Net operating cash flows from discontinued operations	—			(5.3		)	—			—		(5.3		)
Effect of exchange rate changes on cash and cash equivalents	—			—			(0.2		)	—		(0.2		)
Net increase in cash and cash equivalents	$	53.2		$	44.5		$	0.6		$	—	$	98.3

Condensed Consolidating Statement of Cash Flows Nine Months Ended September 30, 2012 (Unaudited)

	Parent Company			Guarantors on a Combined Basis			Non-Guarantors on a Combined Basis			Eliminations		Consolidated
Net cash provided by (used in) operating activities	$	(32.5	)	$	61.6		$	6.0		$	—	$	35.1
Investing activities:
Cash paid for acquisitions, net of cash acquired	(149.4		)	—			—			—		(149.4		)
Decrease in restricted cash	(0.4		)	0.9			—			—		0.5
Capital expenditures	(0.4		)	(10.1		)	(1.5		)	—		(12.0		)
Net cash used in investing activities from continuing operations	(150.2		)	(9.2		)	(1.5		)	—		(160.9		)
Financing activities:
Proceeds from the issuance of common stock	97.0			—			—			—		97.0
Debt issuance costs	(1.2		)	—			—			—		(1.2		)
Borrowing under the line of credit	40.0			—			—			—		40.0
Repayment of debt	(40.0		)	—			(0.8		)	—		(40.8		)
Cash paid for contingent acquisition consideration	—			(2.5		)	—			—		(2.5		)
Financings from affiliated companies	55.7			(55.7		)	—			—		—
Other, net	(0.5		)	(0.4		)	—			—		(0.9		)
Net cash provided by (used in) financing activities from continuing operations	151.0			(58.6		)	(0.8		)	—		91.6
Net cash flows of continuing operations	(31.7		)	(6.2		)	3.7			—		(34.2		)
Net operating cash flows from discontinued operations	—			2.1			—			—		2.1
Effect of exchange rate changes on cash and cash equivalents	—			—			0.1					0.1
Net increase (decrease) in cash and cash equivalents	$	(31.7	)	$	(4.1	)	$	3.8		$	—	$	(32.0	)

Summary of Significant Accounting Policies (Policies)	9 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 30, 2012
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Principles of Consolidation	Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries for which all inter-company transactions have been eliminated in consolidation
Fiscal Year	Fiscal Year The Company has a 52/53 week fiscal year ending on the last Sunday of the calendar year, with interim fiscal periods ending on the last Sunday of the last month of each calendar quarter.
Accounting Policies and Accounting Standards Updates	Accounting Policies and Accounting Standards Updates There have been no changes in the Company's significant accounting policies for the nine months ended September 30, 2012 as compared to the significant accounting policies described in the Form 10-K. In addition, none of the new accounting standards updates issued by the Financial Accounting Standards Board ("FASB") during the nine months ended September 30, 2012 have had or are expected to have a material effect on the Company's consolidated financial position, results of operations, or cash flows.
Concentrations and Uncertainties	Concentrations and Uncertainties The Company maintains cash balances at various financial institutions and such balances commonly exceed the $250,000 insured amount by the Federal Deposit Insurance Corporation. The Company has not experienced any losses in such accounts, and management believes that the Company is not exposed to any significant credit risk with respect to such cash and cash equivalents. Financial instruments, which subject the Company to potential concentrations of credit risk, consist principally of the Company’s billed and unbilled accounts receivable. The Company’s accounts receivable result from sales to customers within the federal government, state and local agencies and commercial customers in various industries. The Company performs ongoing credit evaluations of its commercial customers. Credit is extended based on evaluation of the customer’s financial condition, and collateral is not required. Accounts receivable are recorded at the invoiced amount and do not bear interest. See Note 12 for a discussion of the Company’s significant customers. The Company has outstanding 10% Senior Secured Notes due 2017 ("the Notes") with an aggregate principal amount of $625.0 million outstanding as of September 30, 2012. The Notes are due on June 1, 2017 and the Company pays interest at the rate of 10% per annum semi-annually, in arrears, on June 1 and December 1 of each year. In addition, the Company has $88.9 million available under its existing revolving credit agreement. See Note 9 for a complete description of the Company’s debt. The Company intends to fund its cash requirements with cash on hand, cash flows from operating activities and borrowings under its existing revolving credit facility. Management believes these sources of liquidity should be sufficient to meet the Company’s cash needs for at least the next 12 months. The Company’s quarterly and annual operating results have fluctuated in the past and may vary in the future due to a variety of factors, many of which are external to the Company's control. If the conditions in its industry deteriorate, its customers cancel or postpone projects or if the Company is unable to sufficiently increase its revenues or reduce its expenses, the Company may experience, in the future, a significant long-term negative impact to its financial results and cash flows from operations. In such a situation, the Company could fall out of compliance with its financial and other covenants which, if not waived, could limit its liquidity and capital resources.
Goodwill and intangible assets	Goodwill The Company performs its annual impairment test for goodwill in accordance with ASC Topic 350, Intangibles-Goodwill and Other (“Topic 350”) as of the last day of each fiscal year or when evidence of potential impairment exists. The Company assesses goodwill for impairment at the reporting unit level, which is defined as an operating segment or one level below an operating segment, referred to as a component. The Company determines its reporting units by first identifying its operating segments, and then assessing whether any components of these segments constitute a business for which discrete financial information is available and where segment management regularly reviews the operating results of that component. The Company aggregates components within an operating segment that have similar economic characteristics. For the annual and, if necessary, interim impairment assessment, the Company identified its reporting units to be its KGS and PSS operating segments. In order to test for potential impairment, the Company estimates the fair value of each of its reporting units based on a comparison and weighting of the income approach, specifically the discounted cash flow method and the market approach, which estimates the fair value of the Company's reporting units based upon comparable market prices and recent transactions and also validates the reasonableness of the implied multiples from the income approach. The Company reconciles the fair value of its reporting units to its market capitalization by calculating its market capitalization based upon an average of its stock price prior to and subsequent to the date the Company performs its analysis and assuming a control premium. The Company uses these methodologies to determine the fair value of its reporting units for comparison to their corresponding book values because there are no observable inputs available, a Level 3 measurement. If the book value exceeds the estimated fair value for a reporting unit a potential impairment is indicated, and Topic 350 prescribes the approach for determining the impairment amount, if any.
Inventoried costs	Inventoried Costs Inventoried costs are stated at the lower of cost or market. Cost is determined using the average cost or first-in, first-out method and is applied consistently within an operating entity. Inventoried costs primarily relate to work in process under fixed-price contracts using costs as the basis of the percentage-of-completion calculation under the units produced method of revenue recognition. These costs represent accumulated contract costs less the portion of such costs allocated to delivered items. Accumulated contract costs include direct production costs, factory and engineering overhead and production tooling costs. Pursuant to contract provisions of U.S. Government contracts, such customers may have title to, or a security interest in, inventories related to such contracts as a result of advances, performance-based payments or progress payments. The Company reflects those advances and payments as an offset against the related inventory balances. The Company regularly reviews inventory quantities on hand, future purchase commitments with its suppliers, and the estimated utility of its inventory. If the Company’s review indicates a reduction in utility below carrying value, it reduces its inventory to a new cost basis.
Earnings per share	Net Income (Loss) Per Common Share The Company calculates net income (loss) per share in accordance with ASC Topic 260, Earnings Per Share (“Topic 260”). Under Topic 260, basic net income (loss) per common share is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding during the reporting period. Diluted net income (loss) per common share reflects the effects of potentially dilutive securities.

- Definition

Disclosure of accounting policy regarding (1) the principles it follows in consolidating or combining the separate financial statements, including the principles followed in determining the inclusion or exclusion of subsidiaries or other entities in the consolidated or combined financial statements and (2) its treatment of interests (for example, common stock, a partnership interest or other means of exerting influence) in other entities, for example consolidation or use of the equity or cost methods of accounting. The accounting policy may also address the accounting treatment for intercompany accounts and transactions, noncontrolling interest, and the income statement treatment in consolidation for issuances of stock by a subsidiary.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 45
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-URI http://asc.fasb.org/subtopic&trid=2197087

Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Paragraph 2
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
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-Name FASB Interpretation (FIN)
-Number 46R
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 18
-Paragraph 5, 6, 16-19
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
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-Name Emerging Issues Task Force (EITF)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 12: http://www.xbrl.org/2003/role/presentationRef
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Principles Board Opinion (APB)
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-Subparagraph a(2)
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 2-6
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 16: http://www.xbrl.org/2003/role/presentationRef
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-Number 210
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-Paragraph k
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Reference 17: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
-Number 140
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 18: http://www.xbrl.org/2003/role/presentationRef
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-Name Regulation S-X (SX)
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Reference 19: http://www.xbrl.org/2003/role/presentationRef
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-Name FASB Interpretation (FIN)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

Disclosure of accounting policy for computing basic and diluted earnings or loss per share for each class of common stock and participating security. Addresses all significant policy factors, including any antidilutive items that have been excluded from the computation and takes into account stock dividends, splits and reverse splits that occur after the balance sheet date of the latest reporting period but before the issuance of the financial statements.

+ References + Details

- Definition

Disclosure of accounting policy for determining an entity's fiscal year or other fiscal period. This disclosure may include identification of the fiscal period end-date, the length of the fiscal period, any reporting period lag between the entity and its subsidiaries, or equity investees. If a reporting lag exists, the closing date of the entity having a different period end is generally noted, along with an explanation of the necessity for using different closing dates. Any intervening events that materially affect the entity's financial position or results of operations are generally also disclosed.

+ References + Details

- Definition

Disclosure of accounting policy for major classes of inventories, bases of stating inventories (for example, lower of cost or market), methods by which amounts are added and removed from inventory classes (for example, FIFO, LIFO, or average cost), loss recognition on impairment of inventories, and situations in which inventories are stated above cost. If inventory is carried at cost, this disclosure includes the nature of the cost elements included in inventory.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.6(b))
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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-Paragraph 69-75
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Research Bulletin (ARB)
-Number 43
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
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Reference 10: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Research Bulletin (ARB)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
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-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 6
-Subparagraph a
-Article 5

+ Details

Acquisitions (Tables)

9 Months Ended

Sep. 30, 2012

Business Acquisition [Line Items]

Schedule of pro forma financial information

The pro forma results are for illustrative purposes only for the applicable period and do not purport to be indicative of the actual results that would have occurred had the transactions been completed as of the beginning of the period, nor are they indicative of results of operations that may occur in the future (all amounts, except per share amounts are in millions):



	For the Three Months Ended September 25, 2011			For the Nine Months Ended September 25, 2011			For the Nine Months Ended September 30, 2012
Pro forma revenues	$	244.7		$	771.4		$	752.8
Pro forma net loss before tax	(32.4		)	(60.3		)	(27		)
Pro forma net loss	(34.0		)	(61.7		)	(29.6		)
Net loss attributable to the registrant	(7.2		)	(16.3		)	(16.2		)
Basic and diluted pro forma loss per share	$	(0.58	)	$	(1.06	)	$	(0.52	)

Schedule of nonrecurring pro forma adjustments

These adjustments are as follows (in millions except per share data):



	For the Three Months Ended September 25, 2011			For the Nine Months Ended September 25, 2011			For the Nine Months Ended September 30, 2012
Acquisition related expenses	$	3.7		$	11.3		$	2.7
Intangible amortization	6.0			28.0			12.1
Net change in stock compensation expense	2.2			(1.4		)	2.2
Net change in interest expense	1.3			11.3			—
Net change in income tax benefit (expense)	(0.2		)	(0.1		)	—
Increase in weighted average common shares outstanding for shares issued and not already included in the weighted average common shares outstanding	27.5			32.9			12.7

Schedule of contingent acquisition consideration

Contingent acquisition consideration as of December 25, 2011 and September 30, 2012 is summarized in the following table (in millions):



Balance as of December 25, 2011	$	7.6
Cash payments	(4.0		)
Adjustments	(0.5		)
Balance as of September 30, 2012	$	3.1

Composite Engineering, Inc.

Business Acquisition [Line Items]

Schedule of purchase price allocation

The following table summarizes the preliminary estimated fair values of the major assets acquired and liabilities assumed (in millions):



Cash	$	8.9
Accounts receivable	9.3
Inventoried costs	12.5
Other current assets	8.8
Property and equipment	7.8
Intangible assets	38.0
Goodwill	103.2
Total assets	188.5
Current liabilities	(25.0		)
Net assets acquired	$	163.5

Critical Infrastructure Business

Business Acquisition [Line Items]

Schedule of purchase price allocation

The following table summarizes the preliminary estimated fair values of the major assets acquired and liabilities assumed (in millions):



Accounts receivable	$	23.4
Other assets	0.5
Intangible assets	2.0
Goodwill	3.8
Total assets	29.7
Current liabilities	(9.7		)
Net assets acquired	$	20.0

SecureInfo Corporation

Business Acquisition [Line Items]

Schedule of purchase price allocation

The following table summarizes the preliminary estimated fair values of the major assets acquired and liabilities assumed (in millions):



Cash	$	1.4
Other assets	3.0
Property and equipment	0.1
Intangible assets	4.5
Goodwill	12.2
Total assets	21.2
Current liabilities	(0.9		)
Net assets acquired	$	20.3

Integral Systems, Inc.

Business Acquisition [Line Items]

Schedule of purchase price allocation

The following table summarizes the fair values of the major assets acquired and liabilities assumed (in millions):



Cash	$	6.8
Accounts receivable	68.4
Inventoried costs	15.8
Deferred tax assets	36.4
Other assets	3.5
Property and equipment	12.9
Intangible assets	32.0
Goodwill	187.8
Total assets	363.6
Current liabilities	(84.5		)
Deferred tax liabilities	(19.5		)
Long-term liabilities	(18.5		)
Net assets acquired	$	241.1

Herley Industries, Inc.

Business Acquisition [Line Items]

Schedule of purchase price allocation

The following table summarizes the fair values of the major assets acquired and liabilities assumed (in millions):



Cash	$	21.8
Accounts receivable	39.1
Inventoried costs	42.8
Deferred tax assets	17.3
Other assets	7.2
Property and equipment	34.2
Intangible assets	37.0
Goodwill	146.4
Total assets	345.8
Current liabilities	(40.8		)
Deferred tax liabilities	(16.8		)
Debt	(9.5		)
Long-term liabilities	(6.2		)
Net assets acquired	$	272.5

Goodwill and Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of goodwill

The changes in the carrying amount of goodwill for the nine months ended September 30, 2012 are as follows (in millions):



	Public Safety & Security		Kratos Government Solutions			Total
Balance as of December 25, 2011	$	33.0	$	539.0		$	572.0
Retrospective adjustments	—		(0.4		)	(0.4		)
Balance as of December 25, 2011 after retrospective adjustments	33.0		538.6			571.6
Additions due to business combinations	3.8		103.1			106.9
Balance as of September 30, 2012	$	36.8	$	641.7		$	678.5

Schedule of acquired finite-lived intangible assets

The following table sets forth information for finite-lived intangible assets subject to amortization (in millions):



	As of December 25, 2011							As of September 30, 2012
	Gross Value		Accumulated Amortization			Net Value		Gross Value		Accumulated Amortization			Net Value
Acquired finite-lived intangible assets:
Customer relationships	$	78.1	$	(19.8	)	$	58.3	$	97.7	$	(31.7	)	$	66.0
Contracts and backlog	60.1		(39.6		)	20.5		80.0		(58.0		)	22.0
Developed technology and technical know-how	22.1		(4.1		)	18.0		22.1		(5.8		)	16.3
Trade names	2.6		(0.8		)	1.8		3.1		(1.1		)	2.0
Favorable operating lease	1.8		(0.3		)	1.5		1.8		(0.4		)	1.4
Total	$	164.7	$	(64.6	)	$	100.1	$	204.7	$	(97.0	)	$	107.7

Schedule of future amortization expense of finite-lived intangible assets

The estimated future amortization expense of purchased intangible assets with finite lives as of September 30, 2012 is as follows (in millions):



Fiscal Year	Amount
2012 (remaining three months)	$	11.6
2013	34.7
2014	20.2
2015	14.4
2016	9.7
Thereafter	17.1
Total	$	107.7

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References + Details

Inventoried Costs (Tables)

9 Months Ended

Sep. 30, 2012

Inventory Disclosure [Abstract]

Schedule of inventoried costs

Inventoried costs consisted of the following components (in millions):



	December 25, 2011			September 30, 2012
Raw materials	$	43.3		$	48.4
Work in process	25.7			41.9
Finished goods	6.9			7.8
Supplies and other	4.0			1.9
Subtotal inventoried costs	79.9			100.0
Less customer advances and progress payments	(3.3		)	(0.1		)
Total inventoried costs	$	76.6		$	99.9

Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2012

Equity [Abstract]

Summary of changes in stockholders' equity

A summary of the changes in stockholders’ equity is provided below (in millions):



	Nine Months Ended			Nine Months Ended
	September 25, 2011			September 30, 2012
Stockholders’ equity at beginning of period	$	169.9		$	312.6
Comprehensive income:
Net loss	(15.6		)	(24.4		)
Foreign currency translation	0.1			(0.4		)
Total comprehensive loss	(15.5		)	(24.8		)
Additional paid-in-capital from the issuance of common stock for cash	61.1			97.0
Additional paid-in-capital from the issuance of common stock in connection with acquisitions	—			23.8
Stock-based compensation	2.3			4.6
Restricted stock units traded for taxes	(0.1		)	(0.2		)
Employee stock purchase plan and restricted stock units settled in cash	0.9			(0.4		)
Exercise of stock options and warrants	1.2			—
Fair value of stock options assumed in acquisitions	111.6			—
Stockholders’ equity at end of period	$	331.4		$	412.6

Rollforward of common stock outstanding

Common stock issued by the Company for the nine months ended September 25, 2011 and September 30, 2012 was as follows (in millions):



	Nine Months Ended	Nine Months Ended
	September 25, 2011	September 30, 2012
Shares outstanding at beginning of the period	18.6	32.4
Stock issued for employee stock purchase plan, stock options and restricted stock units exercised	0.4	0.1
Common stock issued for acquisitions	10.4	4.0
Redemption of Series B Convertible Preferred Stock	0.1	—
Common stock issued for cash	4.9	20.0
Shares outstanding at end of the period	34.4	56.5

Net Income (Loss) Per Common Share (Tables)

9 Months Ended

Sep. 30, 2012

Earnings Per Share [Abstract]

Schedule of earnings per share, basic and diluted



	For the Three Months Ended						For the Nine Months Ended
(In millions, except earnings per share)	September 25, 2011			September 30, 2012			September 25, 2011			September 30, 2012
Loss from continuing operations (A)	$	(7.2	)	$	(4.4	)	$	(16.3	)	$	(21.8	)
Weighted average outstanding shares of common stock (B)	30.8			56.6			25.3			43.8
Dilutive effect of employee stock options and awards	—			—			—			—
Common stock and common stock equivalents (C)	30.8			56.6			25.3			43.8
Loss per share:
Basic (A/B)	$	(0.23	)	$	(0.08	)	$	(0.64	)	$	(0.50	)
Diluted (A/C)	$	(0.23	)	$	(0.08	)	$	(0.64	)	$	(0.50	)

Schedule of antidilutive securities excluded from computation of earnings per share

The following shares were excluded from the calculation of diluted loss per share because their inclusion would have been anti-dilutive:

For the Three Months Ended

For the Nine Months Ended

(In millions)

September 25,
2011

September 30,
2012

September 25,
2011

September 30,
2012

Shares from stock options and awards

2.8

4.3

2.0

3.3

Income Taxes (Tables)

9 Months Ended

Sep. 30, 2012

Income Tax Disclosure [Abstract]

Schedule of components of income tax expense (benefit)

A reconciliation of the total income tax provision to the amount computed by applying the statutory federal income tax rate of 35% to loss from continuing operations before income tax provision for the three and nine months ended September 25, 2011 and September 30, 2012 is as follows (in millions):



	For the Three Months Ended						For the Nine Months Ended
	September 25, 2011			September 30, 2012			September 25, 2011			September 30, 2012
Income tax benefit at federal statutory rate	$	(1.9	)	$	(0.9	)	$	(5.2	)	$	(6.3	)
State and foreign taxes, net of federal tax benefit and valuation allowance	1.5			1.0			3.1			3.5
Nondeductible expenses and other	0.6			1.3			2.2			2.0
Release of valuation allowance due to acquisitions	—			—			(0.1		)	—
Impact of indefinite lived deferred tax liabilities and state law changes	—			0.1			0.3			0.2
Settlement with IRS	—			—			(2.1		)	—
Increase/(decrease) in reserves for uncertain tax positions	0.1			0.1			0.1			0.1
Increase/(decrease) in federal valuation allowance	1.3			(0.3		)	3.0			4.3
Total	$	1.6		$	1.3		$	1.3		$	3.8

Discontinued Operations (Tables)

9 Months Ended

Sep. 30, 2012

Discontinued Operations and Disposal Groups [Abstract]

Schedule of income statement and balance sheet disclosures for discontinued operations



	December 25, 2011		September 30, 2012
Cash	$	0.2	$	0.2
Accounts receivable, net	5.3		1.8
Other current assets	4.2		3.9
Current assets of discontinued operations	$	9.7	$	5.9
Other non-current assets	$	2.4	$	0.8
Non-current assets of discontinued operations	$	2.4	$	0.8
Accounts payable	$	0.9	$	1.4
Accrued expenses	5.1		4.1
Other current liabilities	0.3		0.3
Current liabilities of discontinued operations	$	6.3	$	5.8
Other long-term liabilities	0.5		0.3
Long-term liabilities of discontinued operations	$	0.5	$	0.3

The following table presents the results of discontinued operations (in millions):



	For the Three Months Ended				For the Nine Months Ended
	September 25, 2011		September 30, 2012		September 25, 2011			September 30, 2012
Revenue	$	4.4	$	6.0	$	4.4		$	13.3
Net income (loss) before taxes	0.3		0.2		0.4			(2.7		)
Benefit for income taxes	—		—		(0.3		)	(0.1		)
Net income (loss) after taxes	$	0.3	$	0.2	$	0.7		$	(2.6	)

- Definition

Tabular disclosure of disposal groups, which may include the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the classification and carrying value of the assets and liabilities comprising the disposal group, and the segment in which the disposal group was reported. Also may include the amount of adjustments to amounts previously reported in discontinued operations such as resolution of contingencies arising from the disposal transaction or the operations of the component prior to disposal.

+ References + Details

Debt (Tables)

9 Months Ended

Sep. 30, 2012

Debt Disclosure [Abstract]

Fair value of long-term debt



	As of December 25, 2011						As of September 30, 2012
$ in millions	Principal		Carrying Amount		Fair Value		Principal		Carrying Amount		Fair Value
Long-term debt	$	631.8	$	654.6	$	642.7	$	631.0	$	650.7	$	678.2

Segment Information (Tables)

9 Months Ended

Sep. 30, 2012

Segment Reporting [Abstract]

Schedule of segment revenues, operating income, and assets



	Three Months Ended						Nine Months Ended
	September 25, 2011			September 30, 2012			September 25, 2011			September 30, 2012
Revenues:
Kratos Government Solutions	$	174.2		$	223.5		$	416.9		$	568.2
Public Safety & Security	32.4			52.8			83.6			137.4
Total revenues	$	206.6		$	276.3		$	500.5		$	705.6
Operating income:
Kratos Government Solutions	$	10.5		$	14.0		$	26.8		$	32.4
Public Safety & Security	3.7			3.3			6.6			7.3
Unallocated corporate expense, net	(4.5		)	(3.2		)	(13.6		)	(9.1		)
Total operating income	$	9.7		$	14.1		$	19.8		$	30.6



	As of		As of
	December 25, 2011		September 30, 2012
Assets:
Kratos Government Solutions	$	1,028.8	$	1,187.8
Public Safety & Security	88.6		127.7
Discontinued operations	12.2		6.8
Corporate activities	86.4		50.6
Total assets	$	1,216.0	$	1,372.9

- 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 + Details

Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2012

Commitments and Contingencies Disclosure [Abstract]

Schedule of Product Warranty Liabilities



	Nine Months Ended
	September 25, 2011			September 30, 2012
Balance, at beginning of the period	$	1.9		$	4.6
Costs accrued and revenues deferred	0.4			—
Warranty liabilities assumed from acquisitions	—			1.2
Settlements made (in cash or kind) and revenues recognized	(0.4		)	(0.7		)
Balance, at end of period	1.9			5.1
Less: Current portion	1.6			—
Non-current accrued product warranty and deferred warranty revenue	$	0.3		$	5.1

Condensed Consolidating Financial Statements (Tables)

9 Months Ended

Sep. 30, 2012

Condensed Consolidating Financial Statements [Abstract]

Schedule of Condensed Balance Sheet

Condensed Consolidating Balance Sheet December 25, 2011 (Unaudited)

	Parent Company		Guarantors on a Combined Basis		Non-Guarantors on a Combined Basis		Eliminations			Consolidated
Assets
Current Assets:
Cash and cash equivalents	$	52.6	$	2.8	$	14.2	$	—		$	69.6
Accounts receivable, net	—		225.4		19.9		—			245.3
Amounts due from affiliated companies	449.3		—		—		(449.3		)	—
Inventoried costs	—		64.2		12.4		—			76.6
Other current assets	3.3		22.1		4.1		—			29.5
Total current assets	505.2		314.5		50.6		(449.3		)	421.0
Property, plant and equipment, net	1.2		62.2		9.1		—			72.5
Goodwill	—		551.1		20.5		—			571.6
Intangible assets, net	—		119.8		4.8		—			124.6
Investment in subsidiaries	466.0		8.8		—		(474.8		)	—
Amounts due from affiliated companies	—		26.0		—		(26.0		)	—
Other assets	21.5		4.0		0.8		—			26.3
Total assets	$	993.9	$	1,086.4	$	85.8	$	(950.1	)	$	1,216.0
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	8.5	$	37.5	$	2.8	$	—		$	48.8
Accrued expenses	2.4		50.4		3.0		—			55.8
Accrued compensation	3.7		33.3		2.8		—			39.8
Billings in excess of costs and earnings on uncompleted contracts	—		34.3		1.9		—			36.2
Amounts due to affiliated companies	—		418.9		30.4		(449.3		)	—
Other current liabilities	13.5		17.4		2.3		—			33.2
Total current liabilities	28.1		591.8		43.2		(449.3		)	213.8
Long-term debt, net of current portion	647.8		—		5.8		—			653.6
Amounts due to affiliated companies	—		—		26.0		(26.0		)	—
Other long-term liabilities	5.4		28.6		2.0		—			36.0
Total liabilities	681.3		620.4		77.0		(475.3		)	903.4
Total stockholders' equity	312.6		466.0		8.8		(474.8		)	312.6
Total liabilities and stockholders' equity	$	993.9	$	1,086.4	$	85.8	$	(950.1	)	$	1,216.0

Condensed Consolidating Balance Sheet September 30, 2012 (Unaudited)

	Parent Company		Guarantors on a Combined Basis			Non-Guarantors on a Combined Basis		Eliminations			Consolidated
Assets
Current Assets:
Cash and cash equivalents	$	20.9	$	(1.3	)	$	18.0	$	—		$	37.6
Accounts receivable, net	—		262.7			18.7		—			281.4
Amounts due from affiliated companies	509.9		—			—		(509.9		)	—
Inventoried costs	—		82.1			17.8		—			99.9
Other current assets	10.9		23.5			3.3		—			37.7
Total current assets	541.7		367.0			57.8		(509.9		)	456.6
Amounts due from affiliated companies, long-term	—		26.0			—		(26.0		)	—
Property, plant and equipment, net	1.3		73.9			9.4		—			84.6
Goodwill	—		658.0			20.5		—			678.5
Intangible assets, net	—		129.1			3.1		—			132.2
Investment in subsidiaries	542.2		14.6			—		(556.8		)	—
Other assets	18.5		1.7			0.8		—			21.0
Total assets	$	1,103.7	$	1,270.3		$	91.6	$	(1,092.7	)	$	1,372.9
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	5.0	$	70.0		$	6.0	$	—		$	81.0
Accrued expenses	$	3.0	$	67.8		$	2.6	$	—		$	73.4
Accrued compensation	3.8		36.0			2.1		—			41.9
Billings in excess of costs and earnings on uncompleted contracts	—		40.0			4.0		—			44.0
Amounts due to affiliated companies	—		480.7			29.2		(509.9		)	—
Other current liabilities	32.5		1.3			—		—			33.8
Total current liabilities	44.3		695.8			43.9		(509.9		)	274.1
Long-term debt, net of current portion	644.7		—			5.0		—			649.7
Amounts due to affiliated companies	—		—			26.0		(26.0		)	—
Other long-term liabilities	2.1		32.3			2.1		—			36.5
Total liabilities	691.1		728.1			77.0		(535.9		)	960.3
Total stockholders' equity	412.6		542.2			14.6		(556.8		)	412.6
Total liabilities and stockholders' equity	$	1,103.7	$	1,270.3		$	91.6	$	(1,092.7	)	$	1,372.9

Schedule of Condensed Statement of Operations and Comprehensive Income

Condensed Consolidating Statement of Operations and Comprehensive Income Three Months Ended September 25, 2011 (Unaudited)

	Parent Company			Guarantors on a Combined Basis			Non-Guarantors on a Combined Basis			Eliminations			Consolidated
Service revenues	$	—		$	92.4		$	0.8		$	—		$	93.2
Product sales	—			101.4			15.7			(3.7		)	113.4
Total revenues	—			193.8			16.5			(3.7		)	206.6
Cost of service revenues	—			68.0			0.6			—			68.6
Cost of product sales	—			72.4			10.3			(3.7		)	79.0
Total costs	—			140.4			10.9			(3.7		)	147.6
Gross profit	—			53.4			5.6			—			59.0
Selling, general and administrative expenses	4.7			36.7			4.7			—			46.1
Research and development expenses	—			3.0			0.2			—			3.2
Operating income from continuing operations	(4.7		)	13.7			0.7			—			9.7
Other income (expense):
Interest expense, net	15.0			(0.3		)	0.3			—			15.0
Other income, net	—			(0.1		)	0.4			—			0.3
Total other income and expense, net	15.0			(0.4		)	0.7			—			15.3
Income (loss) from continuing operations before income taxes	(19.7		)	14.1			—			—			(5.6		)
Provision for income taxes from continuing operations	—			1.3			0.3			—			1.6
Income (loss) from continuing operations	(19.7		)	12.8			(0.3		)	—			(7.2		)
Income from discontinued operations	—			0.3			—			—			0.3
Equity in net income (loss) of subsidiaries	12.8			(0.3		)	—			(12.5		)	—
Net income (loss)	$	(6.9	)	$	12.8		$	(0.3	)	$	(12.5	)	$	(6.9	)
Comprehensive income (loss)	$	(6.9	)	$	12.8		$	(0.2	)	$	(12.5	)	$	(6.8	)

Condensed Consolidating Statement of Operations and Comprehensive Income Nine Months Ended September 25, 2011 (Unaudited)

	Parent Company			Guarantors on a Combined Basis			Non-Guarantors on a Combined Basis		Eliminations			Consolidated
Service revenues	$	—		$	247.5		$	0.8	$	—		$	248.3
Product sales	—			228.4			31.2		(7.4		)	252.2
Total revenues	—			475.9			32.0		(7.4		)	500.5
Cost of service revenues	—			186.3			0.6		—			186.9
Cost of product sales	—			169.1			20.1		(7.4		)	181.8
Total costs	—			355.4			20.7		(7.4		)	368.7
Gross profit	—			120.5			11.3		—			131.8
Selling, general and administrative expenses	14.4			83.2			9.4		—			107.0
Research and development expenses	—			4.6			0.4		—			5.0
Operating income from continuing operations	(14.4		)	32.7			1.5		—			19.8
Other income (expense):
Interest expense, net	34.6			(0.2		)	0.4		—			34.8
Other income, net	(0.3		)	(0.2		)	0.5		—			—
Total other income and expense, net	34.3			(0.4		)	0.9		—			34.8
Income (loss) from continuing operations before income taxes	(48.7		)	33.1			0.6		—			(15.0		)
Provision for income taxes from continuing operations	—			0.9			0.4		—			1.3
Income (loss) from continuing operations	(48.7		)	32.2			0.2		—			(16.3		)
Income from discontinued operations	—			0.4			0.3		—			0.7
Equity in net income (loss) of subsidiaries	33.1			0.5			—		(33.6		)	—
Net income (loss)	$	(15.6	)	$	33.1		$	0.5	$	(33.6	)	$	(15.6	)
Comprehensive income (loss)	$	(15.6	)	$	33.1		$	0.6	$	(33.6	)	$	(15.5	)

Condensed Consolidating Statement of Operations and Comprehensive Income Three Months Ended September 30, 2012 (Unaudited)

	Parent Company			Guarantors on a Combined Basis			Non-Guarantors on a Combined Basis			Eliminations			Consolidated
Service revenues	$	—		$	124.9		$	0.7		$	—		$	125.6
Product sales	—			136.8			17.0			(3.1		)	150.7
Total revenues	—			261.7			17.7			(3.1		)	276.3
Cost of service revenues	—			97.8			0.5			—			98.3
Cost of product sales	—			96.1			10.9			(3.1		)	103.9
Total costs	—			193.9			11.4			(3.1		)	202.2
Gross profit	—			67.8			6.3			—			74.1
Selling, general and administrative expenses	4.5			47.2			3.8			—			55.5
Research and development expenses	—			4.3			0.2			—			4.5
Operating income from continuing operations	(4.5		)	16.3			2.3			—			14.1
Other income (expense):
Interest expense, net	17.6			(0.1		)	0.1			—			17.6
Other income, net	—			0.1			(0.5		)	—			(0.4		)
Total other income and expense, net	17.6			—			(0.4		)	—			17.2
Income (loss) from continuing operations before income taxes	(22.1		)	16.3			2.7			—			(3.1		)
Provision for income taxes from continuing operations	—			0.9			0.4			—			1.3
Income (loss) from continuing operations	(22.1		)	15.4			2.3			—			(4.4		)
Income (loss) from discontinued operations	—			(0.5		)	0.7			—			0.2
Equity in net income (loss) of subsidiaries	17.9			3.0			—			(20.9		)	—
Net income (loss)	$	(4.2	)	$	17.9		$	3.0		$	(20.9	)	$	(4.2	)
Comprehensive income (loss)	$	(4.2	)	$	17.9		$	3.2		$	(20.9	)	$	(4.0	)

Condensed Consolidating Statement of Operations and Comprehensive Income Nine Months Ended September 30, 2012 (Unaudited)

	Parent Company			Guarantors on a Combined Basis			Non-Guarantors on a Combined Basis			Eliminations			Consolidated
Service revenues	$	—		$	337.9		$	1.9		$	—		$	339.8
Product sales	—			329.4			46.0			(9.6		)	365.8
Total revenues	—			667.3			47.9			(9.6		)	705.6
Cost of service revenues	—			263.5			1.3			—			264.8
Cost of product sales	—			231.0			30.2			(9.6		)	251.6
Total costs	—			494.5			31.5			(9.6		)	516.4
Gross profit	—			172.8			16.4			—			189.2
Selling, general and administrative expenses	9.3			126.1			10.3			—			145.7
Research and development expenses	—			12.2			0.7			—			12.9
Operating income from continuing operations	(9.3		)	34.5			5.4			—			30.6
Other income (expense):
Interest expense, net	49.7			(0.2		)	0.4			—			49.9
Other income, net	(0.3		)	—			(1.0		)	—			(1.3		)
Total other income and expense, net	49.4			(0.2		)	(0.6		)	—			48.6
Income (loss) from continuing operations before income taxes	(58.7		)	34.7			6.0			—			(18.0		)
Provision for income taxes from continuing operations	—			3.1			0.7						3.8
Income (loss) from continuing operations	(58.7		)	31.6			5.3			—			(21.8		)
Income (loss) from discontinued operations	—			(3.3		)	0.7			—			(2.6		)
Equity in net income (loss) of subsidiaries	34.3			6.0			—			(40.3		)	—
Net income (loss)	$	(24.4	)	$	34.3		$	6.0		$	(40.3	)	$	(24.4	)
Comprehensive income (loss)	$	(24.4	)	$	34.3		$	6.4		$	(40.3	)	$	(24.0	)

Schedule of Condensed Cash Flow Statement

Condensed Consolidating Statement of Cash Flows Nine Months Ended September 25, 2011 (Unaudited)

	Parent Company			Guarantors on a Combined Basis			Non-Guarantors on a Combined Basis			Eliminations		Consolidated
Net cash provided by (used in) operating activities	$	(17.1	)	$	29.1		$	0.6		$	—	$	12.6
Investing activities:
Cash paid for acquisitions, net of cash acquired	(373.8		)	—			—			—		(373.8		)
Decrease in restricted cash	1.3			2.0			—			—		3.3
Capital expenditures	(0.2		)	(3.7		)	(1.4		)	—		(5.3		)
Net cash used in investing activities from continuing operations	(372.7		)	(1.7		)	(1.4		)	—		(375.8		)
Financing activities:
Proceeds from the issuance of long-term debt	427.5			—			—			—		427.5
Proceeds from the issuance of common stock	61.1						—			—		61.1
Debt issuance costs	(20.6		)				—			—		(20.6		)
Repayment of debt	—			(2.0		)	(0.5		)	—		(2.5		)
Financing from affiliated companies	(27.0		)	24.9			2.1			—		—
Other, net	2.0			(0.5		)	—			—		1.5
Net cash provided by financing activities from continuing operations	443.0			22.4			1.6			—		467.0
Net cash flows of continuing operations	53.2			49.8			0.8			—		103.8
Net operating cash flows from discontinued operations	—			(5.3		)	—			—		(5.3		)
Effect of exchange rate changes on cash and cash equivalents	—			—			(0.2		)	—		(0.2		)
Net increase in cash and cash equivalents	$	53.2		$	44.5		$	0.6		$	—	$	98.3

Condensed Consolidating Statement of Cash Flows Nine Months Ended September 30, 2012 (Unaudited)

	Parent Company			Guarantors on a Combined Basis			Non-Guarantors on a Combined Basis			Eliminations		Consolidated
Net cash provided by (used in) operating activities	$	(32.5	)	$	61.6		$	6.0		$	—	$	35.1
Investing activities:
Cash paid for acquisitions, net of cash acquired	(149.4		)	—			—			—		(149.4		)
Decrease in restricted cash	(0.4		)	0.9			—			—		0.5
Capital expenditures	(0.4		)	(10.1		)	(1.5		)	—		(12.0		)
Net cash used in investing activities from continuing operations	(150.2		)	(9.2		)	(1.5		)	—		(160.9		)
Financing activities:
Proceeds from the issuance of common stock	97.0			—			—			—		97.0
Debt issuance costs	(1.2		)	—			—			—		(1.2		)
Borrowing under the line of credit	40.0			—			—			—		40.0
Repayment of debt	(40.0		)	—			(0.8		)	—		(40.8		)
Cash paid for contingent acquisition consideration	—			(2.5		)	—			—		(2.5		)
Financings from affiliated companies	55.7			(55.7		)	—			—		—
Other, net	(0.5		)	(0.4		)	—			—		(0.9		)
Net cash provided by (used in) financing activities from continuing operations	151.0			(58.6		)	(0.8		)	—		91.6
Net cash flows of continuing operations	(31.7		)	(6.2		)	3.7			—		(34.2		)
Net operating cash flows from discontinued operations	—			2.1			—			—		2.1
Effect of exchange rate changes on cash and cash equivalents	—			—			0.1					0.1
Net increase (decrease) in cash and cash equivalents	$	(31.7	)	$	(4.1	)	$	3.8		$	—	$	(32.0	)

Summary of Significant Accounting Policies Summary of Significant Accounting Policies - Fiscal Year (Details)	9 Months Ended		12 Months Ended
	Sep. 30, 2012	Sep. 25, 2011	Dec. 25, 2011
Fiscal Year [Line Items]
Fiscal year duration	P53W		P52W
Second quarter year-to-date duration	P40W	P39W
Minimum
Fiscal Year [Line Items]
Fiscal year duration	P52W
Maximum
Fiscal Year [Line Items]
Fiscal year duration	P53W

Summary of Significant Accounting Policies - Concentrations and Uncertainties (Details) - USD ($)	Sep. 30, 2012	Dec. 25, 2011	Jul. 27, 2011	Mar. 25, 2011	May 19, 2010
Debt Instrument [Line Items]
Company frequently maintains cash balances in excess of the FDIC insured amount of	$ 250,000
Principal amount outstanding	631,000,000	$ 631,800,000
Revolving credit facility
Debt Instrument [Line Items]
Remaining borrowing capacity	$ 88,900,000
Senior notes \| Senior Notes due June 2017
Debt Instrument [Line Items]
Stated interest rate percentage	10.00%
Principal amount outstanding	$ 625,000,000		$ 115,000,000	$ 285,000,000	$ 225,000,000

Acquisitions - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions	Sep. 30, 2012	Jul. 02, 2012	Dec. 30, 2011	Dec. 25, 2011	Nov. 15, 2011	Jul. 27, 2011	Mar. 25, 2011
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Goodwill	$ 678.5			$ 571.6
Composite Engineering, Inc.
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Cash		$ 8.9
Accounts receivable		9.3
Inventoried costs		12.5
Other current assets		8.8
Property and equipment		7.8
Intangible assets		38.0
Goodwill		103.2
Total assets		188.5
Current liabilities		(25.0)
Net assets acquired		$ 163.5
Critical Infrastructure Business
Business Acquisition, Purchase Price Allocation [Abstract]
Accounts receivable			$ 23.4
Other assets			0.5
Intangible assets			2.0
Goodwill			3.8
Total assets			29.7
Current liabilities			(9.7)
Net assets acquired			$ 20.0
SecureInfo Corporation
Business Acquisition, Purchase Price Allocation [Abstract]
Cash					$ 1.4
Other assets					3.0
Property and equipment					0.1
Intangible assets					4.5
Goodwill					12.2
Total assets					21.2
Current liabilities					(0.9)
Net assets acquired					$ 20.3
Integral Systems, Inc.
Business Acquisition, Purchase Price Allocation [Abstract]
Cash						$ 6.8
Accounts receivable						68.4
Inventoried costs						15.8
Deferred tax assets						36.4
Other assets						3.5
Property and equipment						12.9
Intangible assets						32.0
Goodwill						187.8
Total assets						363.6
Current liabilities						(84.5)
Deferred tax liabilities						(19.5)
Long-term liabilities						(18.5)
Net assets acquired						$ 241.1
Herley Industries, Inc.
Business Acquisition, Purchase Price Allocation [Abstract]
Cash							$ 21.8
Accounts receivable							39.1
Inventoried costs							42.8
Deferred tax assets							17.3
Other assets							7.2
Property and equipment							34.2
Intangible assets							37.0
Goodwill							146.4
Total assets							345.8
Current liabilities							(40.8)
Deferred tax liabilities							(16.8)
Debt							(9.5)
Long-term liabilities							(6.2)
Net assets acquired							$ 272.5

Acquisitions Acquisitions - Composite Engineering, Inc. (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions				3 Months Ended		9 Months Ended
	Jul. 02, 2012	May 14, 2012	Feb. 11, 2011	Sep. 30, 2012	Sep. 25, 2011	Sep. 30, 2012	Sep. 25, 2011	Dec. 25, 2011
Business Acquisition [Line Items]
Contingent consideration, fair value				$ 3.1		$ 3.1		$ 7.6
Common stock issued for acquisitions						4.0	10.4
Purchase price per share			$ 13.25
Gross proceeds from issuance of common stock			$ 64.8
Proceeds from the issuance of common stock			$ 61.1			$ 97.0	$ 61.1
Revenues				276.3	$ 206.6	705.6	500.5
Operating income (loss)				14.1	$ 9.7	30.6	$ 19.8
Revolving credit facility
Business Acquisition [Line Items]
Outstanding borrowings				0.0		$ 0.0
Composite Engineering, Inc.
Business Acquisition [Line Items]
Consideration transferred	$ 163.5
Aggregate amount of cash paid	$ 135.0
Common stock issued for acquisitions	4.0	20.0
Purchase price per share	$ 5.94	$ 5.00
Common stock exchanged as consideration, value	$ 23.8
Consideration transferred, retirement of acquiree's debt	2.5
Consideration transferred, settlement of pre-existing accounts receivable	3.0
Additional tax liability incurred	0.8
Tax deductible goodwill	$ 101.0
Tax deductible goodwill, deduction realization period	15 years
Gross proceeds from issuance of common stock		$ 100.0
Proceeds from the issuance of common stock		$ 97.0
Acquired accounts receivable, gross	$ 9.3
Revenues				34.7
Operating income (loss)				$ 1.7
Composite Engineering, Inc. \| Revolving credit facility
Business Acquisition [Line Items]
Outstanding borrowings	$ 40.0
Composite Engineering, Inc. \| Restricted Stock Units (RSUs) \| Management
Business Acquisition [Line Items]
Number of shares issued as part of long-term employement agreements	2.0
Fair value of shares issued as part of long-term employement agreements	$ 11.9
Share-based compensation, period for recognition	4 years
Composite Engineering, Inc. \| Escrow account
Business Acquisition [Line Items]
Contingent consideration, fair value	$ 10.7

Acquisitions - Critical Infrastructure Business (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 25, 2011	Sep. 30, 2012	Sep. 25, 2011	Dec. 30, 2011
Business Combination, Acquired Receivables [Abstract]
Revenues	$ 276.3	$ 206.6	$ 705.6	$ 500.5
Operating income (loss)	$ 14.1	$ 9.7	$ 30.6	$ 19.8
Critical Infrastructure Business
Business Acquisition, Cost of Acquired Entity, Purchase Price [Abstract]
Purchase price					$ 20.0
Closing working capital cutoff					17.0
Recurring Critical Infrastructure Business revenues, percentage	15.00%
Business Combination, Acquired Receivables [Abstract]
Acquired accounts receivable, gross					24.4
Acquired accounts receivable, estimated uncollectible					$ (1.0)

Acquisitions - SecureInfo Corporation (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
	Nov. 15, 2011	Sep. 30, 2012	Sep. 25, 2011	Sep. 30, 2012	Sep. 25, 2011	Dec. 25, 2011
Business Acquisition, Cost of Acquired Entity [Abstract]
Contingent consideration, fair value		$ 3.1		$ 3.1		$ 7.6
Business Combination, Acquired Receivables [Abstract]
Revenues		276.3	$ 206.6	705.6	$ 500.5
Operating income (loss)		14.1	$ 9.7	30.6	$ 19.8
SecureInfo Corporation
Business Acquisition, Cost of Acquired Entity [Abstract]
Purchase price	$ 20.3
Business Combination, Acquired Receivables [Abstract]
Acquired accounts receivable, gross	2.9
Revenues		4.6		12.3
Operating income (loss)		$ (0.2)		$ 0.2
SecureInfo Corporation \| Earnout
Business Acquisition, Cost of Acquired Entity [Abstract]
Contingent consideration, fair value	1.5
SecureInfo Corporation \| Holdback escrow
Business Acquisition, Cost of Acquired Entity [Abstract]
Contingent consideration, fair value	1.8
SecureInfo Corporation \| Purchase price adjustment
Business Acquisition, Cost of Acquired Entity [Abstract]
Closing working capital cutoff	2.2
Closing working capital, actual	2.1
Working capital adjustment	$ 0.1

Acquisitions - Integral Systems, Inc. (Details) - USD ($)		3 Months Ended		9 Months Ended
	Jul. 27, 2011	Sep. 30, 2012	Sep. 25, 2011	Sep. 30, 2012	Sep. 25, 2011	Dec. 25, 2011	Mar. 25, 2011	May 19, 2010
Business Acquisition, Cost of Acquired Entity [Abstract]
Principal amount outstanding		$ 631,000,000		$ 631,000,000		$ 631,800,000
Long-term debt premium		19,700,000		19,700,000		$ 22,800,000
Business Combination, Acquired Receivables [Abstract]
Revenues		276,300,000	$ 206,600,000	705,600,000	$ 500,500,000
Operating income (loss)		14,100,000	9,700,000	30,600,000	19,800,000
Senior notes \| Senior Notes due June 2017
Business Acquisition, Cost of Acquired Entity [Abstract]
Principal amount outstanding	$ 115,000,000	$ 625,000,000		$ 625,000,000			$ 285,000,000	$ 225,000,000
Stated interest rate percentage		10.00%		10.00%
Effective interest rate	8.90%						8.50%
Long-term debt premium	$ 5,800,000						$ 20,000,000
Integral Systems, Inc.
Business Acquisition, Cost of Acquired Entity [Abstract]
Purchase price	241,100,000
Aggregate amount of cash paid	$ 131,400,000
Common stock issued in acquisition, shares	10,400,000
Common stock issued in acquisition, fair value	$ 108,700,000
Replacement stock options issued, fair value	1,000,000
Cash received by each Integral Systems stockholder	$ 5
Number of Kratos shares received by each Integral Systems stockholder for one share of Integral Systems common stock	0.588
Integral Systems stock options exercise price cutoff for exhange terms	$ 13
Integral Systems stock options amount of cash condition for calculating consideration	$ 13
Conversion to Kratos stock options ratio	0.9559
Amount of cash received by each Integral Systems stockholder for each share of Integral Systems restricted stock	$ 13
Number of years in business	30 years
Business Combination, Acquired Receivables [Abstract]
Acquired accounts receivable, gross	$ 68,500,000
Acquired accounts receivable, estimated uncollectible	(100,000)
Revenues		$ 58,100,000	44,900,000	$ 152,900,000	44,900,000
Operating income (loss)		$ 5,000,000	$ 5,100,000	$ 7,200,000	$ 5,100,000
Integral Systems, Inc. \| Senior notes \| Senior Notes due June 2017
Business Acquisition, Cost of Acquired Entity [Abstract]
Principal amount outstanding	$ 115,000,000
Stated interest rate percentage	10.00%
Effective interest rate	8.90%
Proceeds from issuance of senior notes, gross	$ 120,800,000
Long-term debt premium	5,800,000
Accrued interest	$ 1,800,000
Issuance premium, percentage	105.00%

Acquisitions - Herley Industries, Inc. (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions			3 Months Ended		9 Months Ended
	Mar. 25, 2011	Feb. 11, 2011	Sep. 30, 2012	Sep. 25, 2011	Sep. 30, 2012	Sep. 25, 2011	Dec. 25, 2011	Jul. 27, 2011	Apr. 15, 2011	Mar. 27, 2011	May 19, 2010
Business Acquisition, Cost of Acquired Entity [Abstract]
Common stock issued to assume the Herley Options (shares)					4.0	10.4
Common stock issued to assume the Herley Options, fair value					$ 0.0	$ 111.6
Purchase price per share		$ 13.25
Gross proceeds from issuance of common stock		$ 64.8
Proceeds from the issuance of common stock		$ 61.1			97.0	61.1
Principal amount outstanding			$ 631.0		631.0		$ 631.8
Business Acquisition, Purchase Price Allocation [Abstract]
Revenues			276.3	$ 206.6	705.6	500.5
Operating income (loss)			14.1	9.7	30.6	19.8
Senior notes \| Senior Notes due June 2017
Business Acquisition, Cost of Acquired Entity [Abstract]
Principal amount outstanding	$ 285.0		$ 625.0		$ 625.0			$ 115.0			$ 225.0
Stated interest rate percentage			10.00%		10.00%
Herley Industries, Inc.
Business Acquisition, Cost of Acquired Entity [Abstract]
Number of shares acquired	13.2
Voting interests acquired, percentage	94.00%
Fair value of non-controlling interest	$ 16.9
Share price used to calculate fair value	$ 19.00
Non-controlling interest, number of shares	0.9
Aggregate amount of cash paid									$ 270.7	$ 245.5
Conversion to Kratos common stock ratio	1.3495
Common stock issued to assume the Herley Options (shares)	0.8
Common stock issued to assume the Herley Options, fair value	$ 1.9
Purchase price	$ 272.5
Common stock issued in acquisition, shares		4.9
Purchase price per share		$ 13.25
Gross proceeds from issuance of common stock		$ 64.8
Proceeds from the issuance of common stock		$ 61.1
Number of years in business	45 years
Business Combination, Acquired Receivables [Abstract]
Acquired accounts receivable, gross	$ 39.3
Acquired accounts receivable, estimated uncollectible	(0.2)
Business Acquisition, Purchase Price Allocation [Abstract]
Inventoried costs	42.8
Property and equipment	34.2
Revenues			$ 50.0	48.7	$ 145.9	100.6
Operating income (loss)			$ 8.4	$ 3.4	$ 22.5	$ 9.9
Herley Industries, Inc. \| Preliminary
Business Acquisition, Purchase Price Allocation [Abstract]
Inventoried costs	47.9
Property and equipment	30.4
Herley Industries, Inc. \| Final
Business Acquisition, Purchase Price Allocation [Abstract]
Inventoried costs	42.8
Property and equipment	34.2
Herley Industries, Inc. \| Senior notes \| Senior Notes due June 2017
Business Acquisition, Cost of Acquired Entity [Abstract]
Principal amount outstanding	$ 285.0
Issuance premium, percentage	107.00%
Herley Industries, Inc. \| Change in control obligations
Business Acquisition, Cost of Acquired Entity [Abstract]
Change in control obligations assumed	$ 4.0
Herley Industries, Inc. \| Combined transaction expenses
Business Acquisition, Cost of Acquired Entity [Abstract]
Combined transaction expenses	$ 11.1

Acquisitions - Pro Forma Financial Information (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions			3 Months Ended		9 Months Ended
	Jul. 27, 2011	Feb. 11, 2011	Sep. 30, 2012	Sep. 25, 2011	Sep. 30, 2012	Sep. 25, 2011
Business Acquisition, Pro Forma Information [Abstract]
Pro forma revenues				$ 244.7	$ 752.8	$ 771.4
Pro forma net loss before tax				(32.4)	(27.0)	(60.3)
Net loss attributable to the registrant				(34.0)	(29.6)	(61.7)
Net income (loss) attributable to the registrant				$ (7.2)	$ (16.2)	$ (16.3)
Basic and diluted pro forma loss per share				$ (0.58)	$ (0.52)	$ (1.06)
Merger and acquisition expenses			$ 0.3	$ 3.7	$ 2.7	$ 11.3
Herley Industries, Inc.
Business Acquisition, Pro Forma Information [Abstract]
Common stock issued in acquisition, shares		4.9
Integral Systems, Inc.
Business Acquisition, Pro Forma Information [Abstract]
Common stock issued in acquisition, shares	10.4

Acquisitions - Pro Forma Financial Information, Nonrecurring Adjustments (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 25, 2011	Sep. 30, 2012	Sep. 25, 2011
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Net income (loss) adjustment, pro forma	$ (4.2)	$ (6.9)	$ (24.4)	$ (15.6)
Acquisition-related expenses
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Net income (loss) adjustment, pro forma		3.7	2.7	11.3
Intangible amortization
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Net income (loss) adjustment, pro forma		6.0	12.1	28.0
Net change in stock compensation expense
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Net income (loss) adjustment, pro forma		2.2	2.2	(1.4)
Net change in interest expense
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Net income (loss) adjustment, pro forma		1.3	0.0	11.3
Net change in income tax benefit (expense)
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Net income (loss) adjustment, pro forma		$ (0.2)	$ 0.0	$ (0.1)
Increase in weighted average common shares outstanding for shares issued and not already included in the weighted average common shares outstanding
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Weighted average number of basic shares outstanding adjustment, pro forma		27.5	12.7	32.9

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 45
-Paragraph 19
-URI http://asc.fasb.org/extlink&oid=7656940&loc=SL4569616-111683

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 55
-Paragraph 4K
-URI http://asc.fasb.org/extlink&oid=18733213&loc=SL4591552-111686

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1A
-Subparagraph (a),(c)
-URI http://asc.fasb.org/extlink&oid=18733093&loc=SL4573702-111684

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 55
-Paragraph 4J
-URI http://asc.fasb.org/extlink&oid=18733213&loc=SL4591551-111686

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 29
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph c(1)
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 5
-Subparagraph b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph A1, A4, A5
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Acquisitions - Contingent Acquisition Consideration (Details) - USD ($) $ in Millions	1 Months Ended	9 Months Ended
	Apr. 30, 2012	Sep. 30, 2012
Business Acquisition, Contingent Consideration [Line Items]
Balance as of December 25, 2011		$ 7.6
Cash payments		(4.0)
Adjustments		(0.5)
Balance as of September 30, 2012		3.1
Fair value of contingent consideration, current		2.0
Fair value of contingent consideration, noncurrent		1.1
DEI Services Corporation
Business Acquisition, Contingent Consideration [Line Items]
Cash payments	$ 2.5	2.9
Adjustments		(0.5)
Potential reduction to prior and future contingent consideration		(5.5)
DEI Services Corporation \| Minimum
Business Acquisition, Contingent Consideration [Line Items]
Potential cash payment for contingent consideration		1.0
DEI Services Corporation \| Maximum
Business Acquisition, Contingent Consideration [Line Items]
Potential cash payment for contingent consideration		$ 4.0

Goodwill and Intangible Assets - Goodwill (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended	9 Months Ended
	Jun. 30, 2012	Jun. 24, 2012	Sep. 30, 2012	Dec. 25, 2011
Goodwill [Roll Forward]
Balance as of December 25, 2011				$ 572.0
Retrospective adjustments			$ (0.4)
Balance as of December 25, 2011 after retrospective adjusments			571.6
Additions due to business combinations			106.9
Balance as of June 24, 2012			678.5
Accumulated impairment losses			165.4	165.4
Public Safety and Security
Goodwill [Roll Forward]
Balance as of December 25, 2011				33.0
Retrospective adjustments			0.0
Balance as of December 25, 2011 after retrospective adjusments			33.0
Additions due to business combinations			3.8
Balance as of June 24, 2012			36.8
Accumulated impairment losses			$ 18.3	18.3
Kratos Government Solutions
Goodwill [Line Items]
Goodwill, Access Of Fair Value Over Carrying Value, Percentage			7.40%
Goodwill [Roll Forward]
Balance as of December 25, 2011				539.0
Retrospective adjustments			$ (0.4)
Balance as of December 25, 2011 after retrospective adjusments			538.6
Additions due to business combinations			103.1
Balance as of June 24, 2012			641.7
Accumulated impairment losses			$ 147.1	$ 147.1
Discontinued operations \| Integral Systems, Inc.
Goodwill [Line Items]
Goodwill impairment charge associated with discontinued operations	$ 1.5	$ 1.5

Goodwill and Intangible Assets - Purchased Intangible Assets (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 25, 2011	Sep. 30, 2012	Sep. 25, 2011	Dec. 25, 2011
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Value	$ 204.7		$ 204.7		$ 164.7
Accumulated Amortization	(97.0)		(97.0)		(64.6)
Net Value	107.7		107.7		100.1
Consolidated amortization expense related to intangible assets subject to amortization	13.0	$ 11.9	32.4	$ 24.5
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2012 (remaining three months)	11.6		11.6
2013	34.7		34.7
2014	20.2		20.2
2015	14.4		14.4
2016	9.7		9.7
Thereafter	17.1		17.1
Total	107.7		107.7		100.1
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Value	97.7		97.7		78.1
Accumulated Amortization	(31.7)		(31.7)		(19.8)
Net Value	66.0		66.0		58.3
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Total	66.0		66.0		58.3
Contracts and backlog
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Value	80.0		80.0		60.1
Accumulated Amortization	(58.0)		(58.0)		(39.6)
Net Value	22.0		22.0		20.5
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Total	22.0		22.0		20.5
Developed technology and technical know-how
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Value	22.1		22.1		22.1
Accumulated Amortization	(5.8)		(5.8)		(4.1)
Net Value	16.3		16.3		18.0
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Total	16.3		16.3		18.0
Trade names
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Value	3.1		3.1		2.6
Accumulated Amortization	(1.1)		(1.1)		(0.8)
Net Value	2.0		2.0		1.8
Indefinite-lived intangible assets	24.5		24.5		24.5
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Total	2.0		2.0		1.8
Favorable operating lease
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Value	1.8		1.8		1.8
Accumulated Amortization	(0.4)		(0.4)		(0.3)
Net Value	1.4		1.4		1.5
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Total	$ 1.4		$ 1.4		$ 1.5

Inventoried Costs (Details) - USD ($) $ in Millions	Sep. 30, 2012	Dec. 25, 2011
Inventory Disclosure [Abstract]
Raw materials	$ 48.4	$ 43.3
Work in process	41.9	25.7
Finished goods	7.8	6.9
Supplies and other	1.9	4.0
Total inventoried costs	100.0	79.9
Less customer advances and progress payments	(0.1)	(3.3)
Total inventoried costs	$ 99.9	$ 76.6

Stockholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions					9 Months Ended
	Jul. 02, 2012	May 14, 2012	Mar. 08, 2012	Feb. 11, 2011	Sep. 30, 2012	Sep. 25, 2011
Class of Stock [Line Items]
Common stock issued for acquisitions					4,000,000	10,400,000
Common stock issued for cash				4,900,000	20,000,000	4,900,000
Purchase price per share				$ 13.25
Gross proceeds from issuance of common stock				$ 64.8
Proceeds from the issuance of common stock				$ 61.1	$ 97.0	$ 61.1
Common stock
Class of Stock [Line Items]
Common stock issued as consideration in redemption of Series B Convertible Preferred Stock - shares			100,000
Series B Convertible Preferred Stock \| Preferred stock
Class of Stock [Line Items]
Preferred stock redeemed during period - shares			10,000
Composite Engineering, Inc.
Class of Stock [Line Items]
Common stock issued for acquisitions	4,000,000	20,000,000
Purchase price per share	$ 5.94	$ 5.00
Gross proceeds from issuance of common stock		$ 100.0
Proceeds from the issuance of common stock		$ 97.0

Stockholders' Equity - Summary of Changes in Stockholders' Equity (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2012	Sep. 25, 2011
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stockholders' equity at beginning of period	$ 312.6	$ 169.9
Net loss	(24.4)	(15.6)
Foreign currency translation	(0.4)	0.1
Total comprehensive loss	(24.8)	(15.5)
Additional paid-in capital from the issuance of common stock for cash	97.0	61.1
Additional paid-in capital from the issuance of common stock for acquisition of CEI	23.8	0.0
Stock-based compensation	4.6	2.3
Restricted Stock Units traded for taxes	(0.2)	(0.1)
Employee stock purchase plan and restricted stock units settled in cash	(0.4)	0.9
Exercise of stock options and warrants	0.0	1.2
Fair value of stock options assumed in acquisitions	0.0	111.6
Stockholders' equity at end of period	$ 412.6	$ 331.4

Stockholders' Equity - Rollforward of Common Stock Outstanding (Details) - shares		9 Months Ended
	Feb. 11, 2011	Sep. 30, 2012	Sep. 25, 2011
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares outstanding at beginning of the period		32,421,135	18,600,000
Stock issued for employee stock purchase plan, stock options and restricted stock units		100,000	400,000
Common stock issued for acquisitions		4,000,000	10,400,000
Redemption of Series B Convertible Preferred Stock		0	100,000
Common stock issued for cash	4,900,000	20,000,000	4,900,000
Shares outstanding at end of the period		56,554,000	34,400,000

- Definition

Number of shares of stock issued during the period pursuant to acquisitions.

+ References + Details

Net Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 25, 2011	Sep. 30, 2012	Sep. 25, 2011
Earnings Per Share [Abstract]
Loss from continuing operations available for common stockholders (A)	$ (4.4)	$ (7.2)	$ (21.8)	$ (16.3)
Weighted average outstanding shares of common stock (B)	56.6	30.8	43.8	25.3
Dilutive effect of employee stock options and awards	0.0	0.0	0.0	0.0
Common stock and common stock equivalents (C)	56.6	30.8	43.8	25.3
Basic (A/B)	$ (0.08)	$ (0.23)	$ (0.50)	$ (0.64)
Diluted (A/C)	$ (0.08)	$ (0.23)	$ (0.50)	$ (0.64)
Shares from stock options and awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares from stock options and awards	4.3	2.8	3.3	2.0

Income Taxes - Narrative (Details) - USD ($) $ in Millions	9 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Millions	Sep. 30, 2012	Sep. 25, 2011	May 27, 2012	Dec. 25, 2011
Income Tax Contingency [Line Items]
Unrecognized tax benefits that if recognized would affect effective tax rate				$ 10.2
Income tax penalties and interest expense	$ 0.3
Benefit for interest and penalties related to reversal of prior positions	(0.1)	$ (0.7)
Liabilities for uncertain tax positions that will expire within 12 months	$ (1.5)
Change of ownership condition, initial percent of ownership of a loss corporation	5.00%
Change of ownership condition, percent change in ownership of a loss corporation	50.00%
Change in ownership condition, period within which change in ownership must occur	3 years
Federal annual utilization of NOL carryforwards limit, next five years			$ 28.1
Federal annual utilization of NOL carryforwards limit, after year five			$ 11.6
Integral Systems, Inc. \| Internal Revenue Service (IRS)
Income Tax Contingency [Line Items]
Unrecognized tax benefits of Integral Systems, Inc., decrease based on updated analysis	$ (0.1)
Discontinued operations
Income Tax Contingency [Line Items]
Unrecognized tax benefits reduction relating to expiration of statutes of limitations	(0.1)
Continuing operations
Income Tax Contingency [Line Items]
Unrecognized tax benefits reduction resulting from completion of IRS audit	$ (0.3)

Income Taxes - Income Tax Provision Reconciliation (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 25, 2011	Sep. 30, 2012	Sep. 25, 2011
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract]
Federal statutory income tax rate	35.00%	35.00%	35.00%	35.00%
Income tax benefit at federal statutory rate	$ (0.9)	$ (1.9)	$ (6.3)	$ (5.2)
State and foreign taxes, net of federal benefit and valuation allowance	1.0	1.5	3.5	3.1
Nondeductible expenses and other	1.3	0.6	2.0	2.2
Release of valuation allowance due to acquisitions	0.0	0.0	0.0	(0.1)
Impact of indefinite lived deferred tax liabilities and state law changes	0.1	0.0	0.2	0.3
Settlement with IRS	0.0	0.0	0.0	(2.1)
Increase/(Decrease) in reserves for uncertain tax positions	0.1	0.1	0.1	0.1
Increase/(Decrease) in federal valuation allowance	(0.3)	1.3	4.3	3.0
Total	$ 1.3	$ 1.6	$ 3.8	$ 1.3

Discontinued Operations (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended			9 Months Ended
Discontinued Operations (Details) - USD ($) $ in Millions	Jun. 30, 2012	Sep. 30, 2012	Jun. 24, 2012	Sep. 25, 2011	Sep. 30, 2012	Sep. 25, 2011	Dec. 25, 2011
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
Revenue		$ 6.0		$ 4.4	$ 13.3	$ 4.4
Net income (loss) before taxes		0.2		0.3	(2.7)	0.4
Benefit for income taxes		0.0		0.0	(0.1)	(0.3)
Net income (loss) after taxes		0.2		$ 0.3	(2.6)	$ 0.7
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract]
Cash		0.2			0.2		$ 0.2
Accounts receivable, net		1.8			1.8		5.3
Other current assets		3.9			3.9		4.2
Current assets of discontinued operations		5.9			5.9		9.7
Other non-current assets		0.8			0.8		2.4
Non-current assets of discontinued operations		0.8			0.8		2.4
Accounts payable		1.4			1.4		0.9
Accrued expenses		4.1			4.1		5.1
Other current liabilities		0.3			0.3		0.3
Current liabilities of discontinued operations		5.8			5.8		6.3
Other non-current liabilities		0.3			0.3		0.5
Non-current liabilities of discontinued operations		$ 0.3			$ 0.3		$ 0.5
Discontinued operations \| Integral Systems, Inc.
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Goodwill impairment charge associated with discontinued operations	$ 1.5		$ 1.5

Debt - Issuance of 10% Senior Secured Notes due 2017 (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2012	Dec. 25, 2011	Jul. 27, 2011	Mar. 25, 2011	May 19, 2010
Debt Instrument [Line Items]
Principal amount outstanding	$ 631.0	$ 631.8
Long-term debt premium	$ 19.7	$ 22.8
Senior notes \| Senior Notes due June 2017
Debt Instrument [Line Items]
Stated interest rate percentage	10.00%
Principal amount outstanding	$ 625.0		$ 115.0	$ 285.0	$ 225.0
Long-term debt premium			$ 5.8	$ 20.0
Effective interest rate			8.90%	8.50%
Fixed charge coverage ratio	2
Senior notes \| Senior Notes due June 2017 \| Between 6/1/2014 and 6/1/2015
Debt Instrument [Line Items]
Redemption price as percentage of aggregate principal amount	105.00%
Senior notes \| Senior Notes due June 2017 \| Between 6/1/2015 and 6/1/2016
Debt Instrument [Line Items]
Redemption price as percentage of aggregate principal amount	102.50%
Senior notes \| Senior Notes due June 2017 \| After 6/1/2016
Debt Instrument [Line Items]
Redemption price as percentage of aggregate principal amount	100.00%
Senior notes \| Senior Notes due June 2017 \| Prior to 6/1/2013
Debt Instrument [Line Items]
Redemption price as percentage of aggregate principal amount	110.00%
Permitted redemption amount as percentage of aggregate principal amount	35.00%

Debt - $110.0 million Credit Facility (Details) - USD ($) shares in Millions, $ in Millions				9 Months Ended
	Jul. 02, 2012	May 14, 2012	Jul. 27, 2011	Sep. 30, 2012	Sep. 25, 2011	May 04, 2012	Nov. 14, 2011	Mar. 31, 2008
Line of Credit Facility [Line Items]
Common stock issued for acquisitions				4.0	10.4
Composite Engineering, Inc.
Line of Credit Facility [Line Items]
Common stock issued for acquisitions	4.0	20.0
Revolving credit facility
Line of Credit Facility [Line Items]
Maximum borrowing capacity			$ 65.0	$ 110.0			$ 90.0	$ 85.0
Maturity period			5 years
Maximum possible borrowing capacity subject to application and bank approval						$ 135.0
Outstanding borrowings				0.0
Remaining borrowing capacity				88.9
Revolving credit facility \| Minimum
Line of Credit Facility [Line Items]
Fixed charge coverage ratio			1.25
Commitment fee			0.50%
Revolving credit facility \| Maximum
Line of Credit Facility [Line Items]
Commitment fee			0.75%
Revolving credit facility \| Composite Engineering, Inc.
Line of Credit Facility [Line Items]
Outstanding borrowings	$ 40.0
LIBOR base rate
Line of Credit Facility [Line Items]
Description of variable rate basis			LIBOR
LIBOR base rate \| Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate			3.00%
LIBOR base rate \| Maximum
Line of Credit Facility [Line Items]
Basis spread on variable rate			3.75%
Base rate other than LIBOR
Line of Credit Facility [Line Items]
Description of variable rate basis			federal funds rate
Base rate (the greater of prime rate or 0.5% over federal funds rate)			0.50%
Base rate (floor, 1.0% over one-month LIBOR)			1.00%
Base rate other than LIBOR \| Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate			1.00%
Base rate other than LIBOR \| Maximum
Line of Credit Facility [Line Items]
Basis spread on variable rate			1.75%
Letter of credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity			$ 50.0
Outstanding borrowings				$ 13.0
Swing line loan
Line of Credit Facility [Line Items]
Maximum borrowing capacity			$ 10.0

Debt - Debt Acquired in Acquisition of Herley (Details) - USD ($) $ in Millions	Mar. 25, 2011	Sep. 30, 2012	Dec. 25, 2011
Debt Instrument [Line Items]
Principal amount outstanding		$ 631.0	$ 631.8
Carrying amount		650.7	$ 654.6
10-year term loan
Debt Instrument [Line Items]
Principal amount outstanding	$ 10.0
Maturity period	10 years
Carrying amount		$ 6.0
Quarterly installment payment - principal	$ 0.3
Basis spread on variable rate	1.50%

Debt - Fair Value of Long-term Debt (Details) - USD ($) $ in Millions	Sep. 30, 2012	Dec. 25, 2011
Debt Disclosure [Abstract]
Principal amount outstanding	$ 631.0	$ 631.8
Carrying amount	650.7	654.6
Fair value	678.2	642.7
Long-term debt premium	$ 19.7	$ 22.8

Derivatives (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Derivatives (Details) - USD ($) $ in Millions	Sep. 30, 2012	Sep. 25, 2011	Sep. 30, 2012	Sep. 25, 2011	Nov. 14, 2011	Jul. 27, 2011	Mar. 31, 2008
Line of Credit Facility [Line Items]
Other income, net	$ 0.4	$ (0.3)	$ 1.3	$ 0.0
Interest rate swap
Line of Credit Facility [Line Items]
Other income, net				$ 0.3
First credit facility with KeyBank
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 110.0		$ 110.0		$ 90.0	$ 65.0	$ 85.0

Significant Customers (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Significant Customers (Details) - USD ($) $ in Millions	Sep. 30, 2012	Sep. 25, 2011	Sep. 30, 2012	Sep. 25, 2011	Nov. 30, 2011
Minimum
Revenue, Major Customer [Line Items]
Amount of budget deficit reductions mandated by The Budget Control Act of 2011					$ 1,200,000.0
Maximum
Revenue, Major Customer [Line Items]
Amount of budget deficit reductions mandated by The Budget Control Act of 2011					$ 1,500,000.0
U.S. Government \| Kratos Government Solutions
Revenue, Major Customer [Line Items]
Sales to the U.S. Government - amount	$ 162.9	$ 157.9	$ 443.8	$ 374.4
Sales to the U.S. Government - percentage of total revenue	59.00%	75.00%	63.00%	74.00%

Segment Information (Details) shares in Millions, $ in Millions				3 Months Ended		9 Months Ended
	Jul. 02, 2012 shares	May 14, 2012 USD ($) shares	Feb. 11, 2011 USD ($)	Sep. 30, 2012 USD ($)	Sep. 25, 2011 USD ($)	Sep. 30, 2012 USD ($) Segment shares	Sep. 25, 2011 USD ($) shares	Dec. 25, 2011 USD ($)
Segment Reporting Information [Line Items]
Proceeds from the issuance of common stock			$ 61.1			$ 97.0	$ 61.1
Number of principal business segments \| Segment						2
Revenues				$ 276.3	$ 206.6	$ 705.6	500.5
Operating income				14.1	9.7	30.6	$ 19.8
Total assets				1,372.9		$ 1,372.9		$ 1,216.0
Common stock issued for acquisitions \| shares						4.0	10.4
Kratos Government Solutions
Segment Reporting Information [Line Items]
Revenues				223.5	174.2	$ 568.2	$ 416.9
Operating income				14.0	10.5	32.4	26.8
Total assets				1,187.8		1,187.8		1,028.8
Public Safety and Security
Segment Reporting Information [Line Items]
Revenues				52.8	32.4	137.4	83.6
Operating income				3.3	3.7	7.3	6.6
Total assets				127.7		127.7		88.6
Unallocated corporate expense, net
Segment Reporting Information [Line Items]
Operating income				(3.2)	$ (4.5)	(9.1)	$ (13.6)
Discontinued operations
Segment Reporting Information [Line Items]
Total assets				6.8		6.8		12.2
Corporate activities
Segment Reporting Information [Line Items]
Total assets				50.6		$ 50.6		$ 86.4
Composite Engineering, Inc.
Segment Reporting Information [Line Items]
Proceeds from the issuance of common stock		$ 97.0
Revenues				34.7
Operating income				$ 1.7
Common stock issued for acquisitions \| shares	4.0	20.0

Commitments and Contingencies - Warranty (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2012	Sep. 25, 2011
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]
Balance at beginning of the period	$ 4.6	$ 1.9
Costs accrued and revenues deferred	0.0	0.4
Warranty liabilities assumed from acquisitions	1.2	0.0
Settlements made (in cash or kind) and revenues recognized	(0.7)	(0.4)
Balance at end of period	5.1	1.9
Less: Current portion	0.0	1.6
Noncurrent accrued product warranty and deferred warranty revenue	$ 5.1	$ 0.3
Product Warranties \| Minimum
Warranty Coverage Period [Line Items]
Warranty coverage period	1 year
Product Warranties \| Maximum
Warranty Coverage Period [Line Items]
Warranty coverage period	10 years

Condensed Consolidating Financial Statements - Balance Sheet (Details) - USD ($) $ in Millions	Sep. 30, 2012	Dec. 25, 2011	Sep. 25, 2011	Jul. 27, 2011	Mar. 25, 2011	Dec. 26, 2010	May 19, 2010
Condensed Financial Statements, Captions [Line Items]
Principal amount outstanding	$ 631.0	$ 631.8
Current assets:
Cash and cash equivalents	37.6	69.6	$ 109.1			$ 10.8
Accounts receivable, net	281.4	245.3
Amounts due from affiliated companies	0.0	0.0
Inventoried costs	99.9	76.6
Other current assets	37.7	29.5
Total current assets	456.6	421.0
Property, plant and equipment, net	84.6	72.5
Goodwill	678.5	571.6
Intangible assets, net	132.2	124.6
Investment in subsidiaries	0.0	0.0
Amounts due from affiliated companies	0.0	0.0
Other assets	21.0	26.3
Total assets	1,372.9	1,216.0
Current liabilities:
Accounts payable	81.0	48.8
Accrued expenses	73.4	55.8
Accrued compensation	41.9	39.8
Billings in excess of costs and earnings on uncompleted contracts	44.0	36.2
Amounts due to affiliated companies	0.0	0.0
Other current liabilities	33.8	33.2
Total current liabilities	274.1	213.8
Long-term debt, net of current portion	649.7	653.6
Amounts due to affiliated companies	0.0	0.0
Other long-term liabilities	36.5	36.0
Total liabilities	960.3	903.4
Total stockholders' equity	412.6	312.6
Total liabilities and stockholders' equity	1,372.9	1,216.0
Parent Company
Current assets:
Cash and cash equivalents	20.9	52.6
Accounts receivable, net	0.0	0.0
Amounts due from affiliated companies	509.9	449.3
Inventoried costs	0.0	0.0
Other current assets	10.9	3.3
Total current assets	541.7	505.2
Property, plant and equipment, net	1.3	1.2
Goodwill	0.0	0.0
Intangible assets, net	0.0	0.0
Investment in subsidiaries	542.2	466.0
Amounts due from affiliated companies	0.0	0.0
Other assets	18.5	21.5
Total assets	1,103.7	993.9
Current liabilities:
Accounts payable	5.0	8.5
Accrued expenses	3.0	2.4
Accrued compensation	3.8	3.7
Billings in excess of costs and earnings on uncompleted contracts	0.0	0.0
Amounts due to affiliated companies	0.0	0.0
Other current liabilities	32.5	13.5
Total current liabilities	44.3	28.1
Long-term debt, net of current portion	644.7	647.8
Amounts due to affiliated companies	0.0	0.0
Other long-term liabilities	2.1	5.4
Total liabilities	691.1	681.3
Total stockholders' equity	412.6	312.6
Total liabilities and stockholders' equity	1,103.7	993.9
Guarantors on a Combined Basis
Current assets:
Cash and cash equivalents	(1.3)	2.8
Accounts receivable, net	262.7	225.4
Amounts due from affiliated companies	0.0	0.0
Inventoried costs	82.1	64.2
Other current assets	23.5	22.1
Total current assets	367.0	314.5
Property, plant and equipment, net	73.9	62.2
Goodwill	658.0	551.1
Intangible assets, net	129.1	119.8
Investment in subsidiaries	14.6	8.8
Amounts due from affiliated companies	26.0	26.0
Other assets	1.7	4.0
Total assets	1,270.3	1,086.4
Current liabilities:
Accounts payable	70.0	37.5
Accrued expenses	67.8	50.4
Accrued compensation	36.0	33.3
Billings in excess of costs and earnings on uncompleted contracts	40.0	34.3
Amounts due to affiliated companies	480.7	418.9
Other current liabilities	1.3	17.4
Total current liabilities	695.8	591.8
Long-term debt, net of current portion	0.0	0.0
Amounts due to affiliated companies	0.0	0.0
Other long-term liabilities	32.3	28.6
Total liabilities	728.1	620.4
Total stockholders' equity	542.2	466.0
Total liabilities and stockholders' equity	1,270.3	1,086.4
Non-Guarantors on a Combined Basis
Current assets:
Cash and cash equivalents	18.0	14.2
Accounts receivable, net	18.7	19.9
Amounts due from affiliated companies	0.0	0.0
Inventoried costs	17.8	12.4
Other current assets	3.3	4.1
Total current assets	57.8	50.6
Property, plant and equipment, net	9.4	9.1
Goodwill	20.5	20.5
Intangible assets, net	3.1	4.8
Investment in subsidiaries	0.0	0.0
Amounts due from affiliated companies	0.0	0.0
Other assets	0.8	0.8
Total assets	91.6	85.8
Current liabilities:
Accounts payable	6.0	2.8
Accrued expenses	2.6	3.0
Accrued compensation	2.1	2.8
Billings in excess of costs and earnings on uncompleted contracts	4.0	1.9
Amounts due to affiliated companies	29.2	30.4
Other current liabilities	0.0	2.3
Total current liabilities	43.9	43.2
Long-term debt, net of current portion	5.0	5.8
Amounts due to affiliated companies	26.0	26.0
Other long-term liabilities	2.1	2.0
Total liabilities	77.0	77.0
Total stockholders' equity	14.6	8.8
Total liabilities and stockholders' equity	91.6	85.8
Eliminations
Current assets:
Cash and cash equivalents	0.0	0.0
Accounts receivable, net	0.0	0.0
Amounts due from affiliated companies	(509.9)	(449.3)
Inventoried costs	0.0	0.0
Other current assets	0.0	0.0
Total current assets	(509.9)	(449.3)
Property, plant and equipment, net	0.0	0.0
Goodwill	0.0	0.0
Intangible assets, net	0.0	0.0
Investment in subsidiaries	(556.8)	(474.8)
Amounts due from affiliated companies	(26.0)	(26.0)
Other assets	0.0	0.0
Total assets	(1,092.7)	(950.1)
Current liabilities:
Accounts payable	0.0	0.0
Accrued expenses	0.0	0.0
Accrued compensation	0.0	0.0
Billings in excess of costs and earnings on uncompleted contracts	0.0	0.0
Amounts due to affiliated companies	(509.9)	(449.3)
Other current liabilities	0.0	0.0
Total current liabilities	(509.9)	(449.3)
Long-term debt, net of current portion	0.0	0.0
Amounts due to affiliated companies	(26.0)	(26.0)
Other long-term liabilities	0.0	0.0
Total liabilities	(535.9)	(475.3)
Total stockholders' equity	(556.8)	(474.8)
Total liabilities and stockholders' equity	(1,092.7)	$ (950.1)
Senior notes \| Senior Notes due June 2017
Condensed Financial Statements, Captions [Line Items]
Principal amount outstanding	$ 625.0			$ 115.0	$ 285.0		$ 225.0

Condensed Consolidating Financial Statements - Statement of Operations and Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 25, 2011	Sep. 30, 2012	Sep. 25, 2011
Condensed Financial Statements, Captions [Line Items]
Service revenues	$ 125.6	$ 93.2	$ 339.8	$ 248.3
Product sales	150.7	113.4	365.8	252.2
Total revenues	276.3	206.6	705.6	500.5
Cost of service revenues	98.3	68.6	264.8	186.9
Cost of product sales	103.9	79.0	251.6	181.8
Total costs	202.2	147.6	516.4	368.7
Gross profit	74.1	59.0	189.2	131.8
Selling, general and administrative expenses	55.5	46.1	145.7	107.0
Research and development expenses	4.5	3.2	12.9	5.0
Operating income from continuing operations	14.1	9.7	30.6	19.8
Other income (expense):
Interest expense, net	17.6	15.0	49.9	34.8
Other income, net	(0.4)	0.3	(1.3)	0.0
Total other income and expense, net	17.2	15.3	48.6	34.8
Income (loss) from continuing operations before income taxes	(3.1)	(5.6)	(18.0)	(15.0)
Provision for income taxes from continuing operations	1.3	1.6	3.8	1.3
Income (loss) from continuing operations	(4.4)	(7.2)	(21.8)	(16.3)
Income (loss) from discontinued operations	0.2	0.3	(2.6)	0.7
Equity in net income (loss) of subsidiaries	0.0	0.0	0.0	0.0
Net income (loss)	(4.2)	(6.9)	(24.4)	(15.6)
Comprehensive income (loss)	(4.0)	(6.8)	(24.0)	(15.5)
Parent Company
Condensed Financial Statements, Captions [Line Items]
Service revenues	0.0	0.0	0.0	0.0
Product sales	0.0	0.0	0.0	0.0
Total revenues	0.0	0.0	0.0	0.0
Cost of service revenues	0.0	0.0	0.0	0.0
Cost of product sales	0.0	0.0	0.0	0.0
Total costs	0.0	0.0	0.0	0.0
Gross profit	0.0	0.0	0.0	0.0
Selling, general and administrative expenses	4.5	4.7	9.3	14.4
Research and development expenses	0.0	0.0	0.0	0.0
Operating income from continuing operations	(4.5)	(4.7)	(9.3)	(14.4)
Other income (expense):
Interest expense, net	17.6	15.0	49.7	34.6
Other income, net	0.0	0.0	(0.3)	(0.3)
Total other income and expense, net	17.6	15.0	49.4	34.3
Income (loss) from continuing operations before income taxes	(22.1)	(19.7)	(58.7)	(48.7)
Provision for income taxes from continuing operations	0.0	0.0	0.0	0.0
Income (loss) from continuing operations	(22.1)	(19.7)	(58.7)	(48.7)
Income (loss) from discontinued operations	0.0	0.0	0.0	0.0
Equity in net income (loss) of subsidiaries	17.9	12.8	34.3	33.1
Net income (loss)	(4.2)	(6.9)	(24.4)	(15.6)
Comprehensive income (loss)	(4.2)	(6.9)	(24.4)	(15.6)
Guarantors on a Combined Basis
Condensed Financial Statements, Captions [Line Items]
Service revenues	124.9	92.4	337.9	247.5
Product sales	136.8	101.4	329.4	228.4
Total revenues	261.7	193.8	667.3	475.9
Cost of service revenues	97.8	68.0	263.5	186.3
Cost of product sales	96.1	72.4	231.0	169.1
Total costs	193.9	140.4	494.5	355.4
Gross profit	67.8	53.4	172.8	120.5
Selling, general and administrative expenses	47.2	36.7	126.1	83.2
Research and development expenses	4.3	3.0	12.2	4.6
Operating income from continuing operations	16.3	13.7	34.5	32.7
Other income (expense):
Interest expense, net	(0.1)	(0.3)	(0.2)	(0.2)
Other income, net	0.1	(0.1)	0.0	(0.2)
Total other income and expense, net	0.0	(0.4)	(0.2)	(0.4)
Income (loss) from continuing operations before income taxes	16.3	14.1	34.7	33.1
Provision for income taxes from continuing operations	0.9	1.3	3.1	0.9
Income (loss) from continuing operations	15.4	12.8	31.6	32.2
Income (loss) from discontinued operations	(0.5)	0.3	(3.3)	0.4
Equity in net income (loss) of subsidiaries	3.0	(0.3)	6.0	0.5
Net income (loss)	17.9	12.8	34.3	33.1
Comprehensive income (loss)	17.9	12.8	34.3	33.1
Non-Guarantors on a Combined Basis
Condensed Financial Statements, Captions [Line Items]
Service revenues	0.7	0.8	1.9	0.8
Product sales	17.0	15.7	46.0	31.2
Total revenues	17.7	16.5	47.9	32.0
Cost of service revenues	0.5	0.6	1.3	0.6
Cost of product sales	10.9	10.3	30.2	20.1
Total costs	11.4	10.9	31.5	20.7
Gross profit	6.3	5.6	16.4	11.3
Selling, general and administrative expenses	3.8	4.7	10.3	9.4
Research and development expenses	0.2	0.2	0.7	0.4
Operating income from continuing operations	2.3	0.7	5.4	1.5
Other income (expense):
Interest expense, net	0.1	0.3	0.4	0.4
Other income, net	(0.5)	0.4	(1.0)	0.5
Total other income and expense, net	(0.4)	0.7	(0.6)	0.9
Income (loss) from continuing operations before income taxes	2.7	0.0	6.0	0.6
Provision for income taxes from continuing operations	0.4	0.3	0.7	0.4
Income (loss) from continuing operations	2.3	(0.3)	5.3	0.2
Income (loss) from discontinued operations	0.7	0.0	0.7	0.3
Equity in net income (loss) of subsidiaries	0.0	0.0	0.0	0.0
Net income (loss)	3.0	(0.3)	6.0	0.5
Comprehensive income (loss)	3.2	(0.2)	6.4	0.6
Eliminations
Condensed Financial Statements, Captions [Line Items]
Service revenues	0.0	0.0	0.0	0.0
Product sales	(3.1)	(3.7)	(9.6)	(7.4)
Total revenues	(3.1)	(3.7)	(9.6)	(7.4)
Cost of service revenues	0.0	0.0	0.0	0.0
Cost of product sales	(3.1)	(3.7)	(9.6)	(7.4)
Total costs	(3.1)	(3.7)	(9.6)	(7.4)
Gross profit	0.0	0.0	0.0	0.0
Selling, general and administrative expenses	0.0	0.0	0.0	0.0
Research and development expenses	0.0	0.0	0.0	0.0
Operating income from continuing operations	0.0	0.0	0.0	0.0
Other income (expense):
Interest expense, net	0.0	0.0	0.0	0.0
Other income, net	0.0	0.0	0.0	0.0
Total other income and expense, net	0.0	0.0	0.0	0.0
Income (loss) from continuing operations before income taxes	0.0	0.0	0.0	0.0
Provision for income taxes from continuing operations	0.0	0.0		0.0
Income (loss) from continuing operations	0.0	0.0	0.0	0.0
Income (loss) from discontinued operations	0.0	0.0	0.0	0.0
Equity in net income (loss) of subsidiaries	(20.9)	(12.5)	(40.3)	(33.6)
Net income (loss)	(20.9)	(12.5)	(40.3)	(33.6)
Comprehensive income (loss)	$ (20.9)	$ (12.5)	$ (40.3)	$ (33.6)

Condensed Consolidating Financial Statements - Statement of Cash Flows (Details) - USD ($) $ in Millions		9 Months Ended
	Feb. 11, 2011	Sep. 30, 2012	Sep. 25, 2011
Condensed Financial Statements, Captions [Line Items]
Net cash provided by (used in) operating activities		$ 35.1	$ 12.6
Investing activities:
Cash paid for acquisitions, net of cash acquired		(149.4)	(373.8)
Decrease in restricted cash		0.5	3.3
Capital expenditures		(12.0)	(5.3)
Net cash used in investing activities from continuing operations		(160.9)	(375.8)
Financing activities:
Proceeds from the issuance of long-term debt		0.0	427.5
Proceeds from the issuance of common stock	$ 61.1	97.0	61.1
Debt issuance costs		(1.2)	(20.6)
Borrowing under the line of credit		40.0	0.0
Repayment of debt		(40.8)	(2.5)
Cash paid for contingent acquisition consideration		(2.5)	0.0
Financing from affiliated companies		0.0	0.0
Other, net		(0.9)	1.5
Net cash provided by (used in) financing activities from continuing operations		91.6	467.0
Net cash flows of continuing operations		(34.2)	103.8
Net operating cash flows of discontinued operations		2.1	(5.3)
Effect of exchange rate changes on cash and cash equivalents		0.1	(0.2)
Net increase (decrease) in cash and cash equivalents		(32.0)	98.3
Parent Company
Condensed Financial Statements, Captions [Line Items]
Net cash provided by (used in) operating activities		(32.5)	(17.1)
Investing activities:
Cash paid for acquisitions, net of cash acquired		(149.4)	(373.8)
Decrease in restricted cash		(0.4)	1.3
Capital expenditures		(0.4)	(0.2)
Net cash used in investing activities from continuing operations		(150.2)	(372.7)
Financing activities:
Proceeds from the issuance of long-term debt			427.5
Proceeds from the issuance of common stock		97.0	61.1
Debt issuance costs		(1.2)	(20.6)
Borrowing under the line of credit		40.0
Repayment of debt		(40.0)	0.0
Cash paid for contingent acquisition consideration		0.0
Financing from affiliated companies		55.7	(27.0)
Other, net		(0.5)	2.0
Net cash provided by (used in) financing activities from continuing operations		151.0	443.0
Net cash flows of continuing operations		(31.7)	53.2
Net operating cash flows of discontinued operations		0.0	0.0
Effect of exchange rate changes on cash and cash equivalents		0.0	0.0
Net increase (decrease) in cash and cash equivalents		(31.7)	53.2
Guarantors on a Combined Basis
Condensed Financial Statements, Captions [Line Items]
Net cash provided by (used in) operating activities		61.6	29.1
Investing activities:
Cash paid for acquisitions, net of cash acquired		0.0	0.0
Decrease in restricted cash		0.9	2.0
Capital expenditures		(10.1)	(3.7)
Net cash used in investing activities from continuing operations		(9.2)	(1.7)
Financing activities:
Proceeds from the issuance of long-term debt			0.0
Proceeds from the issuance of common stock		0.0
Debt issuance costs		0.0
Borrowing under the line of credit		0.0
Repayment of debt		0.0	(2.0)
Cash paid for contingent acquisition consideration		(2.5)
Financing from affiliated companies		(55.7)	24.9
Other, net		(0.4)	(0.5)
Net cash provided by (used in) financing activities from continuing operations		(58.6)	22.4
Net cash flows of continuing operations		(6.2)	49.8
Net operating cash flows of discontinued operations		2.1	(5.3)
Effect of exchange rate changes on cash and cash equivalents		0.0	0.0
Net increase (decrease) in cash and cash equivalents		(4.1)	44.5
Non-Guarantors on a Combined Basis
Condensed Financial Statements, Captions [Line Items]
Net cash provided by (used in) operating activities		6.0	0.6
Investing activities:
Cash paid for acquisitions, net of cash acquired		0.0	0.0
Decrease in restricted cash		0.0	0.0
Capital expenditures		(1.5)	(1.4)
Net cash used in investing activities from continuing operations		(1.5)	(1.4)
Financing activities:
Proceeds from the issuance of long-term debt			0.0
Proceeds from the issuance of common stock		0.0	0.0
Debt issuance costs		0.0	0.0
Borrowing under the line of credit		0.0
Repayment of debt		(0.8)	(0.5)
Cash paid for contingent acquisition consideration		0.0
Financing from affiliated companies		0.0	2.1
Other, net		0.0	0.0
Net cash provided by (used in) financing activities from continuing operations		(0.8)	1.6
Net cash flows of continuing operations		3.7	0.8
Net operating cash flows of discontinued operations		0.0	0.0
Effect of exchange rate changes on cash and cash equivalents		0.1	(0.2)
Net increase (decrease) in cash and cash equivalents		3.8	0.6
Eliminations
Condensed Financial Statements, Captions [Line Items]
Net cash provided by (used in) operating activities		0.0	0.0
Investing activities:
Cash paid for acquisitions, net of cash acquired		0.0	0.0
Decrease in restricted cash		0.0	0.0
Capital expenditures		0.0	0.0
Net cash used in investing activities from continuing operations		0.0	0.0
Financing activities:
Proceeds from the issuance of long-term debt			0.0
Proceeds from the issuance of common stock		0.0	0.0
Debt issuance costs		0.0	0.0
Borrowing under the line of credit		0.0
Repayment of debt		0.0	0.0
Cash paid for contingent acquisition consideration		0.0
Financing from affiliated companies		0.0	0.0
Other, net		0.0	0.0
Net cash provided by (used in) financing activities from continuing operations		0.0	0.0
Net cash flows of continuing operations		0.0	0.0
Net operating cash flows of discontinued operations		0.0	0.0
Effect of exchange rate changes on cash and cash equivalents			0.0
Net increase (decrease) in cash and cash equivalents		$ 0.0	$ 0.0