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Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Dec. 29, 2013	Mar. 07, 2014	Jun. 30, 2013
Document And Entity Information
Entity Registrant Name	KRATOS DEFENSE & SECURITY SOLUTIONS, INC.
Entity Central Index Key	0001069258
Current Fiscal Year End Date	--12-29
Entity Filer Category	Accelerated Filer
Document Type	10-K
Document Period End Date	Dec. 29, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Current Reporting Status	Yes
Entity Common Stock, Shares Outstanding		57,416,257
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Public Float			$ 286.6

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Dec. 29, 2013	Dec. 30, 2012
Current assets:
Cash and cash equivalents	$ 55.7	$ 49.0
Restricted cash	5.0	5.5
Accounts receivable, net	265.8	271.9
Inventoried costs	74.6	94.3
Income taxes receivable	2.1	3.7
Prepaid expenses	10.4	17.4
Other current assets	16.7	7.0
Other current assets of discontinued operations	0.0	6.6
Total current assets	430.3	455.4
Property, plant and equipment, net	84.8	85.6
Goodwill	596.4	596.4
Intangible assets, net	69.9	106.1
Other assets	35.2	39.6
Other assets of discontinued operations	0.0	0.8
Total assets	1,216.6	1,283.9
Current liabilities:
Accounts payable	61.9	83.6
Accrued expenses	46.2	46.4
Accrued compensation	44.9	47.8
Accrued interest	5.2	6.3
Billings in excess of costs and earnings on uncompleted contracts	52.5	43.7
Deferred income tax liability	28.4	28.9
Other current liabilities	8.1	15.7
Current portion of long-term debt	1.0	1.0
Current portion of capital lease obligations	0.3	0.5
Current liabilities of discontinued operations	2.5	4.9
Total current liabilities	251.0	278.8
Long-term debt principal, net of current portion	628.8	629.7
Long-term debt premium	14.5	18.7
Capital lease obligations, net of current portion	0.1	0.4
Deferred income tax liability	0.7	0.0
Other long-term liabilities	25.5	31.9
Long-term liabilities of discontinued operations	0.2	0.3
Total liabilities	920.8	959.8
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.001 par value, 5,000,000 authorized, 0 shares outstanding at December 30, 2012 and December 29, 2013	0.0	0.0
Common stock, $0.001 par value, 195,000,000 shares authorized; 56,613,024 and 57,056,892 shares issued and outstanding at December 30, 2012 and December 29, 2013, respectively	0.0	0.0
Additional paid-in capital	856.0	847.1
Accumulated other comprehensive loss	(0.8)	(0.8)
Accumulated deficit	(559.4)	(522.2)
Total stockholders' equity	295.8	324.1
Total liabilities and stockholders’ equity	$ 1,216.6	$ 1,283.9

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 29, 2013	Dec. 30, 2012
Preferred Stock:
Par value	$ 0.001	$ 0.001
Shares authorized	5,000,000	5,000,000
Shares outstanding	0	0
Common Stock:
Par value (in dollars per share)	$ 0.001	$ 0.001
Shares authorized	195,000,000	195,000,000
Shares issued	57,056,892	56,613,024
Shares outstanding	57,056,892	56,613,024

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 29, 2013	Dec. 30, 2012	Dec. 25, 2011
Income Statement [Abstract]
Service revenues	$ 443.6	$ 450.0	$ 351.0
Product sales	507.0	519.2	362.9
Total revenues	950.6	969.2	713.9
Cost of service revenues	335.2	350.8	260.7
Cost of product sales	375.4	361.2	262.0
Total costs	710.6	712.0	522.7
Gross profit	240.0	257.2	191.2
Selling, general and administrative expenses	193.0	193.1	140.6
Merger and acquisition related items	(3.8)	(2.7)	12.5
Research and development expenses	21.4	17.8	8.6
Impairment of goodwill and intangible assets	0.0	96.6	0.0
Unused office space and other	(2.4)	2.1	0.0
Operating income (loss) from continuing operations	31.8	(49.7)	29.5
Other income (expense):
Interest expense, net	(63.7)	(66.1)	(51.1)
Other income, net	0.0	1.3	0.0
Total other expense, net	(63.7)	(64.8)	(51.1)
Loss from continuing operations before income taxes	(31.9)	(114.5)	(21.6)
Provision (benefit) for income taxes from continuing operations	0.0	(1.6)	1.9
Loss from continuing operations	(31.9)	(112.9)	(23.5)
Loss from discontinued operations	(5.3)	(1.5)	(0.7)
Net loss	$ (37.2)	$ (114.4)	$ (24.2)
Basic and diluted loss per common share:
Net loss from continuing operations (in dollars per share)	$ (0.56)	$ (2.41)	$ (0.86)
Net loss from discontinued operations (in dollars per share)	(0.09)	(0.03)	(0.02)
Net loss per common share (in dollars per share)	$ (0.65)	$ (2.44)	$ (0.88)
Weighted average common shares outstanding:
Basic and diluted (in shares)	56.8	46.9	27.4
Comprehensive Loss
Net loss from above	$ (37.2)	$ (114.4)	$ (24.2)
Other comprehensive loss:
Change in cumulative translation adjustment	0.0	(0.4)	0.1
Post retirement benefit reserve adjustment net of tax expense	0.0	(0.2)	(0.3)
Other comprehensive loss, net of tax	0.0	(0.6)	(0.2)
Comprehensive loss	$ (37.2)	$ (115.0)	$ (24.4)

CONSOLIDATED STATEMENTS OF STOCKHOLDER'S EQUITY - USD ($) $ in Millions	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit
Balance (in shares) at Dec. 26, 2010		18,600,000
Balance at Dec. 26, 2010	$ 169.9	$ 0.0	$ 553.5	$ 0.0	$ (383.6)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock for employee stock purchase plan, options and warrants (shares)		400,000
Issuance of common stock for employee stock purchase plan, options and warrants	2.0		2.0
Issuance of common stock for cash (in shares)		4,900,000
Issuance of common stock for cash	61.1		61.1
Issuance of common stock for acquisitions (in shares)		10,400,000
Stock-based compensation	109.7		109.7
Fair value of options assumed for acquisitions	1.9		1.9
Stock-based compensation	3.3		3.3
Conversion of convertible notes (in shares)		100,000
Conversion of convertible notes	0.0
Common stock repurchased (in shares)		(2,000,000)
Net loss	(10.9)		(10.9)
Net loss	(24.2)				(24.2)
Other comprehensive loss, net of tax	(0.2)			(0.2)
Balance at Dec. 25, 2011	312.6	$ 0.0	720.6	(0.2)	(407.8)
Balance (in shares) at Dec. 25, 2011		32,400,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock for employee stock purchase plan, options and warrants (shares)		200,000
Issuance of common stock for employee stock purchase plan, options and warrants	0.0
Issuance of common stock for cash (in shares)		20,000,000
Issuance of common stock for cash	97.0		97.0
Issuance of common stock for acquisitions (in shares)		4,000,000
Stock-based compensation	23.8		23.8
Stock-based compensation	6.6		6.6
Common stock repurchased for employee stock purchase plan	(0.7)		(0.7)
Restricted stock units traded for taxes	(0.2)		(0.2)
Net loss	(114.4)				(114.4)
Other comprehensive loss, net of tax	(0.6)			(0.6)
Balance at Dec. 30, 2012	$ 324.1	$ 0.0	847.1	(0.8)	(522.2)
Balance (in shares) at Dec. 30, 2012	56,613,024	56,600,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock for employee stock purchase plan, options and warrants (shares)		300,000
Issuance of common stock for employee stock purchase plan, options and warrants	$ 1.6		1.6
Stock-based compensation	7.4		7.4
Restricted stock units traded for taxes	(0.1)		(0.1)
Restricted stock units traded for taxes (in shares)		100,000
Net loss	(37.2)				(37.2)
Other comprehensive loss, net of tax	0.0
Balance at Dec. 29, 2013	$ 295.8	$ 0.0	$ 856.0	$ (0.8)	$ (559.4)
Balance (in shares) at Dec. 29, 2013	57,056,892	57,000,000

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	12 Months Ended
	Dec. 29, 2013	Dec. 30, 2012	Dec. 25, 2011
Operating activities:
Net loss	$ (37.2)	$ (114.4)	$ (24.2)
Loss from discontinued operations	(5.3)	(1.5)	(0.7)
Loss from continuing operations	(31.9)	(112.9)	(23.5)
Adjustments to reconcile net loss from continuing operations to net cash provided by operating activities from continuing operations:
Depreciation and amortization	53.4	58.0	48.0
Deferred income taxes	(0.4)	(2.5)	(0.1)
Stock-based compensation	7.4	6.6	3.3
Mark to market on swaps	0.0	0.0	(0.3)
Goodwill and intangible assets impairment charge	0.0	96.6	0.0
Amortization of deferred financing costs	5.1	5.1	3.8
Amortization of premium on Senior Secured Notes	(4.2)	(4.2)	(2.8)
Provision for doubtful accounts	1.0	0.4	1.8
Change in accrual for excess facilities	(4.7)	1.8	0.0
Changes in assets and liabilities, net of acquisitions:
Accounts receivable	4.9	2.8	(14.4)
Inventoried costs	20.0	(5.2)	4.3
Prepaid expenses	1.9	(1.7)	1.4
Other assets	(7.0)	(0.2)	1.3
Accounts payable	(22.0)	25.6	(15.8)
Accrued expenses	(0.7)	(10.3)	1.0
Accrued compensation	(3.0)	4.3	(3.8)
Accrued interest	(1.1)	1.2	3.1
Billings in excess of costs and earnings on uncompleted contracts	8.8	(5.0)	(1.8)
Income tax receivable and payable	1.6	(0.7)	(0.2)
Other liabilities	(6.5)	(7.4)	(0.1)
Net cash provided by operating activities from continuing operations	22.6	52.3	5.2
Investing activities:
Cash paid for acquisitions, net of cash acquired	2.2	(149.4)	(391.1)
Proceeds from the disposition of discontinued operations	1.3	0.3	0.0
Cash transferred from restricted cash	0.4	0.6	3.0
Capital expenditures	(16.6)	(16.6)	(7.5)
Net cash used in investing activities from continuing operations	(12.7)	(165.1)	(395.6)
Financing activities:
Proceeds from the issuance of long-term debt, net of issuance costs	0.0	0.0	425.7
Proceeds from the issuance of common stock, net of issuance costs	0.0	97.0	61.1
Borrowing under credit facility	0.0	50.0	0.0
Repayments under credit facility	(1.0)	(51.0)	(2.7)
Purchase of treasury stock	0.0	0.0	(10.9)
Cash paid for contingent acquisition consideration	(2.1)	(2.5)	0.0
Debt issuance costs	0.0	(1.2)	(22.1)
Proceeds from exercise of restricted stock units, employee stock options, and employee stock purchase plan	1.5	0.0	2.0
Other	(0.4)	(1.4)	(0.7)
Net cash provided by (used in) financing activities from continuing operations	(2.0)	90.9	452.4
Net cash flows of continuing operations	7.9	(21.9)	62.0
Net operating cash flows of discontinued operations	(1.3)	1.3	(2.7)
Effect of exchange rate changes on cash and cash equivalents	0.1	0.0	(0.5)
Net increase (decrease) in cash and cash equivalents	6.7	(20.6)	58.8
Cash and cash equivalents at beginning of year	49.0	69.6	10.8
Cash and cash equivalents at end of year	55.7	49.0	69.6
Supplemental disclosure of cash flow information:
Cash paid during the year for interest	63.8	64.0	46.2
Net cash paid during the year for income taxes	0.2	2.7	1.5
Non-cash investing and financing activities:
Common stock and stock options issued for acquisitions	0.0	23.8	111.6
Liability for contingent cash consideration	0.0	2.1	1.8
Supplemental disclosures of non-cash investing and financing transactions:
Fair value of assets acquired in acquisitions	0.0	218.3	731.3
Liabilities assumed in acquisitions	$ 0.0	$ 35.2	$ 197.2

Organization and Summary of Significant Accounting Policies

12 Months Ended

Dec. 29, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Summary of Significant Accounting Policies


(a)	Description of Business

Kratos Defense & Security Solutions, Inc. (“Kratos” or the “Company”) is a specialized security technology business providing mission critical products, solutions and services for domestic and international customers, with its principal customers being agencies of the U.S. Government. Kratos' core capabilities are sophisticated engineering, manufacturing, technology development, and system integration, and test and evaluation offerings for national security platforms and programs. Its principal products and solutions are related to Command, Control, Communications, Computing, Combat Systems, Intelligence, Surveillance and Reconnaissance (“C5ISR”); design, engineer and manufacture specialized electronic components, subsystems and systems for electronic attack, electronic warfare, radar, and missile system platforms; integrated technology solutions for satellite communications; products and solutions for unmanned systems; products and services related to cybersecurity and cyberwarfare; products and solutions for ballistic missile defense; weapons systems trainers; advanced network engineering and information technology services; weapons systems lifecycle support and sustainment; military weapon range operations and technical services; and public safety, critical infrastructure security and surveillance systems.

The Company conducts most of its business with the U.S. Government (which includes foreign military sales) and performs work as the prime contractor, subcontractor, or preferred supplier. The Company also conducts business with local, state, and foreign governments and domestic and international commercial customers.

The Company operates in two principal business segments: Kratos Government Solutions (“KGS”) and Public Safety & Security (“PSS”). The Company organizes its business segments based on the nature of the services offered. Transactions between segments are generally negotiated and accounted for under terms and conditions similar to other government and commercial contracts, and these intercompany transactions are eliminated in consolidation. The financial statements in this Annual Report on Form 10-K (this “Annual Report”) are presented in a manner consistent with the Company's operating structure. For additional information regarding the Company's operating segments, see Note 14 of the Notes to the Consolidated Financial Statements.


b)	Principles of Consolidation and Basis of Presentation

The Consolidated Financial Statements include the accounts of Kratos and its wholly-owned subsidiaries, for which all intercompany transactions have been eliminated in consolidation.

In June 2012, the Company committed to a plan to sell certain lines of business associated with antennas, satellite-cased products and fly-away terminals of the non-core businesses acquired in the Integral acquisition. In accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 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 Consolidated Financial Statements. See Note 9.

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 each calendar quarter. There were 52 calendar weeks in the fiscal years ended on December 25, 2011 and December 29, 2013. There were 53 calendar weeks in the fiscal year ended on

December 30, 2012.


(d)	Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates include revenue recognition, allowance for doubtful accounts, warranties, inventory valuation, valuation of long-lived assets including identifiable intangibles and goodwill, accounting for income taxes including the related valuation allowance on the deferred tax asset and uncertain tax positions, contingencies and litigation, contingent acquisition consideration, stock-based compensation, losses on unused office space, and business combination purchase price allocations. In the future, the Company may realize actual results that differ from the current reported estimates and if the estimates that the Company has used change in the future, such changes could have a material impact on the Company's consolidated financial position, results of operations and cash flows.


(e)	Revenue Recognition

The Company generates its revenue from three different types of contractual arrangements: cost-plus-fee contracts, time-and-materials contracts, and fixed-price contracts. Revenue on cost-plus-fee contracts is recognized to the extent of allowable costs incurred plus an estimate of the applicable fees earned. The Company considers fees under cost-plus-fee contracts to be earned in proportion to the allowable costs incurred in performance of the contract and recognizes the relevant portion of the expected fee to be awarded by the customer at the time such fee can be reasonably estimated, based on factors such as its prior award experience and communications with the customer regarding performance, including any interim performance evaluations rendered by the customer. Revenue on time-and-materials contracts is recognized to the extent of billable rates times hours delivered for services provided, to the extent of material cost for products delivered to customers, and to the extent of expenses incurred on behalf of the customers.

The Company has three basic categories of fixed-price contracts: fixed unit price, fixed-price-level of effort, and fixed-price-completion. Revenue recognition methods on fixed-price contracts will vary depending on the nature of the work and the contract terms. Revenues on fixed-price service contracts are recorded as work is performed in accordance with ASC Topic 605, Revenue Recognition (“Topic 605”), specifically Topic 605-10-S99, which generally requires revenue to be deferred until all of the following have occurred: (1) there is a contract in place; (2) delivery has occurred or services have been provided; (3) the price is fixed or determinable; and, (4) collectability is reasonably assured. Revenues on fixed-price contracts that require delivery of specific items may be recorded based on a price per unit as units are delivered. Revenue for fixed-price contracts in which the Company is paid a specific amount to provide services for a stated period of time is recognized ratably over the service period.

On a portion of the fixed price-completion contracts, revenue is recognized in accordance with Topic 605 using the percentage-of-completion method based on the ratio of total costs incurred to date compared to estimated total costs to complete the contract. Estimates of costs to complete include material, direct labor, overhead, and allowable indirect expenses for government contracts. These cost estimates are reviewed and, if necessary, revised on a contract-by-contract basis. If, as a result of this review, management determines that a loss on a contract is evident, then the full amount of estimated loss is charged to operations in the period. As of December 30, 2012 and December 29, 2013, the provisions for losses on contracts were $4.2 million and $4.8 million, respectively.

In certain instances, when the Company's customers have requested that it commence work prior to receipt of the contract award and funding and it has incurred costs related to that specific anticipated contract, and the Company believes recoverability of the costs is probable, it may defer those costs incurred until the associated contract has been awarded and funded by the customer.

In accounting for the Company's long-term contracts for production of products provided to the U.S. Government, the Company utilizes both cost-to-cost and units delivered measures under the percentage-of-completion method of accounting under the provisions of Topic 605. Under the units delivered measure of the percentage-of-completion method of accounting, sales are recognized as the units are accepted by the customer generally using sales values for units in accordance with the contract terms. The Company estimates profit as the difference between total estimated revenue and total estimated cost of a contract and recognizes that profit over the life of the contract based on units delivered or as computed on the basis of the estimated final average unit costs plus profit. The Company classifies contract revenues as product sales or service revenues depending upon the predominant attributes of the relevant underlying contracts.

Significant management judgments and estimates, including but not limited to the estimated costs to complete projects, must be made and used in connection with the revenue recognized in any accounting period. A cancellation, schedule delay, or modification of a fixed-price contract which is accounted for using the percentage-of-completion method may adversely affect the Company's gross margins for the period in which the contract is modified or canceled. Under certain circumstances, a cancellation or negative modification could result in the Company having to reverse revenue that was recognized in a prior period, thus significantly reducing the amount of revenues recognized for the period in which the adjustment is made. Correspondingly, a positive modification may positively affect gross margins. In addition, a schedule delay or modifications can result in an increase in estimated cost to complete the project, which would also result in an impact to gross margins. Material differences may result in the amount and timing of the Company's revenue for any period if management made different judgments or utilized different estimates.

It is the Company's policy to review any arrangement containing software or software deliverables and services against the criteria contained in ASC Topic 985, Software (“Topic 985”). Under the provisions of Topic 985, the Company reviews the contract value of software deliverables and services and determines allocations of the contract value based on vendor-specific objective evidence (“VSOE”) of fair value for each of the software elements. All software arrangements requiring significant production, modification, or customization of the software are accounted for in conformity with Topic 605.

The Company's contracts may include the provision of more than one of its services (“multiple element arrangements”). In these situations, the Company applies the guidance of Topic 605. Accordingly, for applicable arrangements, revenue recognition includes the proper identification of separate units of accounting and the allocation of revenue across all elements based on relative fair values.

For multiple element arrangements that include hardware products containing software essential to the hardware products' functionality, the Company allocates revenue to all deliverables based on their relative selling prices. In such circumstances, the Company uses a hierarchy to determine the selling price to be used for allocating revenue to deliverables: (i) VSOE, (ii) third-party evidence of selling price (“TPE”), and (iii) best estimate of the selling price (“ESP”).

VSOE generally exists only when the Company sells the deliverable separately and is the price actually charged by the Company for that deliverable. TPE is determined based on competitor prices for similar deliverables when sold separately. Generally, the Company's offerings contain significant differentiation such that comparable pricing of products with similar functionality cannot be obtained. Furthermore, the Company is unable to reliably determine what similar competitor products' selling prices are on a stand-alone basis. Therefore, the Company typically is unable to obtain TPE of selling price. ESP reflects the Company's best estimates of what the selling prices of elements would be if they were sold regularly on a stand-alone basis. The Company determines ESP for a product or service by considering multiple factors including, but not limited to major product groupings, geographies, market conditions, competitive landscape, internal costs, gross margin objectives and pricing practices. The determination of ESP is made through consultation with management, taking into consideration the Company's marketing strategy.

The Company accounts for multiple element arrangements that consist only of software or software-related products, including the sale of upgrades to previously sold software, in accordance with industry specific software accounting guidance. For such transactions, revenue on arrangements that include multiple elements is allocated to each element based on the relative fair value of each element, and fair value is determined by VSOE. If the Company cannot objectively determine the fair value of any undelivered element included in such multiple element arrangements, the Company defers revenue until all elements are delivered and services have been performed, or until fair value can objectively be determined for any remaining undelivered elements. Under certain of the Company's contractual arrangements, the Company may also recognize revenue for out-of-pocket expenses in accordance with Topic 605. Depending on the contractual arrangement, these expenses may be reimbursed with or without a fee.

Under certain of its contracts, the Company provides supplier procurement services and materials for its customers. The Company records revenue on these arrangements on a gross or net basis in accordance with Topic 605, depending on the specific circumstances of the arrangement. The Company considers the following criteria, among others, for recording revenue on a gross or net basis:


(1)	Whether the Company acts as a principal in the transaction;


(2)	Whether the Company takes title to the products;


(3)	Whether the Company assumes risks and rewards of ownership, such as risk of loss for collection, delivery or returns;


(4)	Whether the Company serves as an agent or broker, with compensation on a commission or fee basis; and,


(5)	Whether the Company assumes the credit risk for the amount billed to the customer subsequent to delivery.

For federal contracts, the Company follows U.S. Government procurement and accounting standards in assessing the allowability and the allocability of costs to contracts. Due to the significance of the judgments and estimation processes, it is likely that materially different amounts could be recorded if different assumptions were used or if the underlying circumstances were to change. The Company closely monitors the consistent application of its critical accounting policies and compliance with contract accounting. Business operations personnel conduct periodic contract status and performance reviews. When adjustments in estimated contract revenues or costs are required, any significant changes from prior estimates are included in earnings in the current period. Also, regular and recurring evaluations of contract cost, scheduling and technical matters are performed by management personnel who are independent from the business operations personnel performing work under the contract. Costs incurred and allocated to contracts with the U.S. Government are scrutinized for compliance with regulatory standards by the Company's personnel, and are subject to audit by the Defense Contract Audit Agency.

From time to time, the Company may proceed with work based on customer direction prior to the completion and signing of formal contract documents. The Company has a formal review process for approving any such work. Revenue associated with such work is recognized only when it can be reliably estimated and realization is probable. The Company bases its estimates on previous experiences with the customer, communications with the customer regarding funding status, and its knowledge of available funding for the contract or program. As of December 30, 2012 and December 29, 2013, approximately $3.7 million and $3.7 million, respectively, of the Company's unbilled accounts receivable balance were under an authorization to proceed or work order from its customers where a formal purchase order had not yet been received.

Costs incurred for shipping and handling are included in cost of product sales at the time the related revenue is recognized. Amounts billed to a customer for shipping and handling are reported as revenue.


(f)	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 methods and the applicable method is applied consistently within an operating entity. Inventoried costs primarily relate to work under fixed-price contracts using the percentage-of-completion under the units of delivery 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, and 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.


(g)	Research and Development

Costs incurred in research and development activities are expensed as incurred in accordance with FASB ASC Topic 730, Research and Development.


(h)	Income Taxes

The Company records deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

The Company maintains a valuation allowance on the deferred tax assets for which it is more likely than not that the Company will not realize the benefits of these tax assets in future tax periods. The valuation allowance is based on estimates of future taxable income by tax jurisdiction in which the Company operates, the number of years over which the deferred tax assets will be recoverable, and scheduled reversals of deferred tax liabilities.

In accordance with the recognition standards established by ASC Topic 740, Income Taxes (“Topic 740”), the Company makes a comprehensive review of its portfolio of uncertain tax positions regularly. In this regard, an uncertain tax position represents the Company's expected treatment of a tax position taken in a filed tax return, or planned to be taken in a future tax return or claim, which has not been reflected in measuring income tax expense for financial reporting purposes. Until these positions are sustained by the taxing authorities, the Company has not recognized the tax benefits resulting from such positions and reports the tax effects as a liability for uncertain tax positions in its Consolidated Balance Sheets.


(i)	Stock-Based Compensation

The Company accounts for stock-based compensation in accordance with ASC Topic 718, Compensation-Stock Compensation (“Topic 718”). All of the Company's stock-based compensation plans are considered equity plans under Topic 718, and compensation expense recognized is net of estimated forfeitures over the vesting period. The Company issues stock options and stock awards under its existing plans. The fair value of stock options is estimated on the date of grant using a Black-Scholes option-pricing model or a trinomial lattice options pricing model and is expensed on a straight-line basis over the remaining vesting period of the options, which is generally six or less years. The fair value of stock awards is determined based on the closing market price of the Company's common stock on the grant date and is adjusted at each reporting date based on the amount of shares ultimately expected to vest. Compensation expense for stock awards is expensed over the vesting period, usually five to ten years. Compensation expense for stock issued under the Company's employee stock purchase plan is estimated at the beginning date of the offering period using a Black-Scholes option-pricing model and is expensed on a straight-line basis over the period of the offering, which is generally six months.

For the years ended December 25, 2011, December 30, 2012 and December 29, 2013, there was no incremental tax benefit from stock options exercised in the periods. The Company recorded cash received from the exercise of stock options and awards of $1.3 million in 2011, and $0.0 million in 2012 and in 2013. The following table shows the amounts recognized in the Consolidated Financial Statements for 2011, 2012 and 2013 for stock-based compensation expense related to stock options, stock awards and to stock offered under the Company's employee stock purchase plan (in millions).



	2011			2012			2013
Selling, general and administrative expenses	$	3.3		$	6.6		$	7.4
Total cost of employee stock-based compensation included in operating income (loss) from continuing operations, before income tax	3.3			6.6			7.4
Total charged against operations	$	3.3		$	6.6		$	7.4
Impact on net income (loss) per common share:
Basic and diluted	$	(0.12	)	$	(0.14	)	$	(0.13	)


(j)	Allowance for Doubtful Accounts

The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments, which results in bad debt expense. Management periodically determines the adequacy of this allowance by evaluating the comprehensive risk profiles of all individual customer receivable balances including, but not limited to, the customer's financial condition, credit agency reports, financial statements and overall current economic conditions. Additionally, on certain contracts whereby the Company performs services for a prime/general contractor, a specified percentage of the invoiced trade accounts receivable may be retained by the customer until the project is completed. The Company periodically reviews all retainages for collectability and records allowances for doubtful accounts when deemed appropriate, based on its assessment of the associated credit risks. Changes to estimates of contract value are recorded as adjustments to revenue and not as a component of the allowance for doubtful accounts. Individual accounts receivable are written off to the allowance for doubtful accounts when the Company becomes aware of a specific customer's inability to meet its financial obligation, and all collection efforts are exhausted.

The following table outlines the balance of the Company's Allowance for Doubtful Accounts for 2011, 2012 and 2013. The table identifies the additional provisions each year as well as the write-offs that utilized the allowance (in millions).



Allowance for Doubtful Accounts	Balance at Beginning of Year		Provisions		Write-offs/Recoveries			Balance at End of Year
Year ended December 25, 2011	$	0.7	$	1.8	$	(0.5	)	$	2.0
Year ended December 30, 2012	$	2.0	$	0.4	$	(1.0	)	$	1.4
Year ended December 29, 2013	$	1.4	$	1.0	$	(0.2	)	$	2.2


(k)	Cash and Cash Equivalents

The Company's cash equivalents consist of its highly liquid investments with an original maturity of three months or less when purchased by the Company.

The Company has restricted cash accounts of approximately $5.5 million at December 30, 2012 and $5.0 million at December 29, 2013. As of December 30, 2012 and December 29, 2013, restricted cash consists primarily of a deposit securing foreign letters of credit related to payment and performance bonds on international contracts.


(l)	Property and Equipment, Net

Property and equipment, net owned by the Company is depreciated over the estimated useful lives of individual assets. Equipment and facilities acquired under capital leases are amortized over the shorter of the lease term or the estimated useful life of the asset. Improvements, which significantly improve and extend the useful life of an asset, are capitalized and depreciated over the shorter of the lease period or the estimated useful life. Expenditures for maintenance and repairs are charged to operations as incurred.

Assets are depreciated predominately using the straight-line method, with the following lives:



		Years
Buildings and improvements		15 - 39
Machinery and equipment		3 - 10
Computer equipment and software		1 - 10
Vehicles, furniture, and office equipment		5
Leasehold improvements		Shorter of useful life or length of lease


(m)	Leases

The Company uses its incremental borrowing rate in the assessment of lease classification as capital or operating and defines the initial lease term to include renewal options determined to be reasonably assured. The Company conducts operations primarily under operating leases.

Most lease agreements for real property contain incentives for tenant improvements, rent holidays, or rent escalation clauses. For incentives for tenant improvements, the Company capitalizes the leasehold improvements which are depreciated over the shorter of the lease term or their estimated useful life and records a deferred rent liability which is amortized over the term of the lease as a reduction to rent expense. For rent holidays and rent escalation clauses during the lease term, the Company records minimum rental expenses on a straight-line basis over the term of the lease. For purposes of recognizing lease incentives, the Company uses the date of initial possession as the commencement date, which is generally when the Company is given the right of access to the space and begins to make improvements in preparation for intended use.


(n)	Acquisitions

The Company accounts for business combinations using the acquisition method of accounting as prescribed by ASC Topic 805, Business Combinations (“Topic 805”). The Company allocates the purchase price of its acquisitions to the tangible and intangible assets, and liabilities including certain contingent liabilities acquired based upon their estimated fair values. The excess of purchase price over those fair values is recorded as goodwill. Acquisition-related expenses and restructuring costs are recognized separately from the business combination and are expensed as incurred.


(o)	Goodwill and Other Intangible Assets, Net

In accordance with the provisions of ASC Topic 350, Intangibles-Goodwill and Other (“Topic 350”), the Company performs impairment tests for goodwill as of the last day of each fiscal year, or when evidence of potential impairment exists. When it is determined that impairment has occurred, a charge to operations is recorded. Goodwill and other purchased intangible asset balances are included in the identifiable assets of the operating segment to which they have been assigned. Any goodwill impairment, as well as the amortization of other purchased intangible assets, is charged against the respective segments' operating income.

In accordance with Topic 350, the Company classifies intangible assets into three categories: (1) intangible assets with finite lives subject to amortization, (2) intangible assets with indefinite lives not subject to amortization, and (3) goodwill. The Company tests intangible assets with finite lives for impairment if conditions exist that indicate the carrying value may not be recoverable. Such conditions may include an economic downturn in a geographic market or a change in the assessment of future operations. The Company records an impairment charge when the carrying value of the finite lived intangible asset is not recoverable by the cash flows generated from the use of the asset.

The Company determines the useful lives of identifiable intangible assets after considering the specific facts and circumstances related to each intangible asset. Factors considered when determining useful lives include the contractual term of any agreement, the history of the asset, the Company's long-term strategy for the use of the asset, any laws or other local regulations which could impact the useful life of the asset, and other economic factors, including competition and specific market conditions. Intangible assets that are deemed to have finite lives are amortized, generally on a straight-line basis, over their useful lives, ranging from one to 15 years.

(p) Impairment of Long-Lived Assets and Long-Lived Assets to Be Disposed Of

Long-lived assets and certain identifiable intangibles are reviewed for impairment in accordance with ASC Topic 360, Property, Plant, and Equipment, whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to future net cash flows (undiscounted and without interest) expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell.


(q)	Fair Value of Financial Instruments

ASC Topic 825, Financial Instruments, requires that fair values be disclosed for the Company's financial instruments. The carrying amounts of cash equivalents, accounts receivable, accounts payable, accrued expenses, billings in excess of costs and earnings on uncompleted contracts, and income taxes payable, approximate fair value due to the short-term nature of these instruments. The fair value of the Company's long-term debt is based upon actual trading activity. The fair value of capital lease obligations is estimated based on quoted market prices for the same or similar obligations with the same remaining maturities.


(r)	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 U.S. Government, state and local agencies and with 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 13 for a discussion of the Company's significant customers.

(s) Debt Issuance Costs

Fees paid to obtain debt financing or amendments under such debt financing are treated as debt issuance costs and are capitalized and amortized over the expected term of the related debt. These payments are shown as a financing activity in the Consolidated Statements of Cash Flows and are included in other current assets and other assets in the Consolidated Balance Sheets.


(t)	Interest Expense, Net

Interest expense, net in the Consolidated Statements of Operations and Comprehensive Loss is summarized in the following table (in millions):



	2011			2012			2013
Interest expense incurred primarily on the Company's Senior Secured Notes	$	(51.2	)	$	(66.4	)	$	(63.9	)
Miscellaneous interest income	0.1			0.3			0.2
Interest expense, net	$	(51.1	)	$	(66.1	)	$	(63.7	)


(u)	Foreign Currency

For operations outside the U.S. that prepare financial statements in currencies other than the U.S. dollar, results of operations and cash flows are translated at average exchange rates during the period, and assets and liabilities are generally translated at end-of-period exchange rates. Translation adjustments are included as a separate component of accumulated other comprehensive loss in the Consolidated Statements Of Stockholders' Equity.

The Company transacts with foreign customers in currencies other than the U.S. dollar. It experiences realized and unrealized foreign currency gains or losses on foreign denominated receivables. In addition, certain intercompany transactions give rise to realized and unrealized foreign currency gains or losses. Also, any other transactions between the Company or its subsidiaries and a third-party, denominated in a currency different from the functional currency, are foreign currency transactions.

The aggregate foreign currency transaction loss included in determining net loss for the years ended December 25, 2011, December 30, 2012, and December 29, 2013 was approximately $0.5 million, $0.6 million, and $0.0 million, respectively, which is included in other income (expense), net on the accompanying Consolidated Statements of Operations and Comprehensive Loss.


(v)	Product Warranties

Certain of the Company's products 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.

(x) Recent Accounting Pronouncements

In July 2013, the FASB issued Accounting Standards Update 2013-11 ("ASU 2013-11") "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists," which states that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The Company does not believe that the adoption of this guidance will have a material impact on its consolidated financial statements.

In February 2013, the FASB issued ASU 2013-02 "Comprehensive Income: Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income," which requires entities to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, entities are required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount is required under GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under GAAP to be reclassified in their entirety to net income, entities are required to cross-reference to other disclosures required under GAAP that provide additional detail on these amounts. This standard is effective prospectively for reporting periods beginning after December 15, 2012. The Company adopted this standard in the quarter ended March 31, 2013, which did not have a material impact on its consolidated financial statements.

Goodwill and Other Intangible Assets

12 Months Ended

Dec. 29, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets


(a)	Goodwill

The Company performs its annual impairment test for goodwill in accordance with 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 its annual assessments in 2011 and 2012, the Company identified its reporting units to be its KGS and PSS operating segments.

As a result of an internal organizational realignment in August 2013 the Company reorganized its KGS operating segment. As a result of this reorganization, the Company has six divisions comprised of Unmanned Combat Aerial Systems (UCAS) Division, Advanced Drones & Target Systems (ADTS) Division, Modular Systems (MS) Division, Defense and Rocket Support Services (DRSS) Division, Technical and Training Solutions (TTS) Division, and Electronic Products (EP) Division. The Company has identified its reporting units to be the ADTS, DRSS, EP, MS, TTS and UCAS divisions within its KGS reportable segment, and the PSS operating segment to be tested for potential impairment in its fiscal year 2013 annual test.

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 (See note 10). 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.

As a result of the Company's decision in June 2012 to dispose of certain non-core businesses acquired in the Integral acquisition in July 2011, the Company allocated $1.5 million of goodwill to discontinued operations, which resulted in an impairment charge (see Note 9). 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% at that time.

During the fourth quarter of 2012, the KGS reporting unit was impacted by continued declining market valuations and the economic uncertainty in the U.S. defense industry. Congress was unable to agree on a budget that conformed with the Budget Control Act of 2011 requirements, which called for additional substantial defense spending reductions through sequestration. Congress and the President could not agree on budgetary, tax and spending issues, and as a result a FY 2013 budget was not passed and a six-month continuing resolution that funded the U.S. Government through March 27, 2013 was passed. These events significantly increased the likelihood of the sequester occurring which had negative consequences for the defense industry. In addition, as Congress and the Administration could not come to an agreement on terms of a possible national fiscal approach, they also failed to address other fiscal matters such as the debt ceiling. These events negatively impacted the Company's 2012 annual estimate of the fair value of the KGS reporting unit resulting in the book value of KGS exceeding its fair value in step one of the impairment test.

The Company performed the second step of the goodwill impairment test to measure the amount of the impairment loss, if any, of the KGS reporting unit. The second step of the test requires the allocation of the reporting unit's fair value to its assets and liabilities, including any unrecognized intangible assets, in a hypothetical analysis that calculates the implied fair value of goodwill as if the reporting unit was being acquired in a business combination. If the implied fair value of goodwill is less than the carrying value, the difference is recorded as an impairment loss. Based on the results of the step two analysis, the Company recorded an $82.0 million goodwill impairment in 2012.

As of December 29, 2013, the goodwill of the PSS and KGS reportable segments were $35.6 million and $560.8 million, respectively.

The changes in the carrying amount of goodwill for the years ended December 30, 2012 and December 29, 2013 are as follows (in millions):



	Public Safety & Security		Kratos Government Solutions			Total
Balance as of December 25, 2011	$	33.0	$	538.6		$	571.6
Additions due to business combinations	2.6		104.3			106.9
Impairments	—		(82.0		)	(82.0		)
Balance as of December 30, 2012	35.6		560.9			596.5
Retrospective adjustments	—		(0.1		)	(0.1		)
Balance as of December 30, 2012 after retrospective adjustments	35.6		560.8			596.4
2013 transactions	—		—			—
Balance as of December 29, 2013	$	35.6	$	560.8		$	596.4

The accumulated impairment losses as of December 29, 2013 were $247.4 million, of which $229.1 million was associated with the KGS reportable segment and $18.3 million was associated with the PSS reportable segment.


(b)	Purchased Intangible Assets

The following table sets forth information for acquired finite-lived and indefinite-lived intangible assets (in millions):



	As of December 30, 2012							As of December 29, 2013
	Gross Value		Accumulated Amortization			Net Value		Gross Value		Accumulated Amortization			Net Value
Acquired finite-lived intangible assets:
Customer relationships	$	97.7	$	(36.2	)	$	61.5	$	97.7	$	(53.7	)	$	44.0
Contracts and backlog	80.0		(64.3		)	15.7		80.0		(78.7		)	1.3
Developed technology and technical know-how	22.1		(6.4		)	15.7		22.1		(8.6		)	13.5
Trade names	6.1		(1.2		)	4.9		6.1		(3.1		)	3.0
Favorable operating lease	1.8		(0.4		)	1.4		1.8		(0.6		)	1.2
Total finite-lived intangible assets	207.7		(108.5		)	99.2		207.7		(144.7		)	63.0
Acquired indefinite-lived intangible assets
Trade names	6.9		—			6.9		6.9		—			6.9
Total indefinite-lived intangible assets	6.9		—			6.9		6.9		—			6.9
Total intangible assets	$	214.6	$	(108.5	)	$	106.1	$	214.6	$	(144.7	)	$	69.9

The Company reviews intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Impairment losses, where identified, are determined as the excess of the carrying value over the estimated fair value of the long-lived asset. The recoverability of the carrying value of assets held for use is assessed based on a review of projected undiscounted cash flows. Prior to conducting step one of the 2012 goodwill impairment test, certain of the long-lived assets were assessed for recoverability. During 2012 the Company made the decision to minimize the use of the CMCI and HBE trade names as part of its overall branding strategy which resulted in a revised fair value of $6.9 million for such trade names, with a remaining useful life of two years. This resulted in an impairment of $14.6 million in 2012. The impairment related to the KGS and PSS reportable segments were $1.7 million and $12.9 million, respectively.

The aggregate amortization expense for finite-lived intangible assets was $38.0 million, $43.9 million and $36.2 million for the years ended December 25, 2011, December 30, 2012, and December 29, 2013, respectively. The Company records all amortization expense in selling, general and administrative expenses in the Consolidated Statements of Operations and Comprehensive Loss.

The estimated future amortization expense of acquired intangible assets with finite lives as of December 29, 2013 is as follows (in millions):



Fiscal Year	Amount
2014	$	21.7
2015	14.4
2016	9.7
2017	8.2
2018	3.9
Thereafter	5.1
Total	$	63.0

- 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

Acquisitions

12 Months Ended

Dec. 29, 2013

Business Combinations [Abstract]

Acquisitions

(a) Summary of Recent Acquisitions

Composite Engineering, Inc.

On July 2, 2012, the Company acquired Composite Engineering, Inc. (“CEI”) for approximately $164.2 million. The purchase price included consideration of $135.0 million in cash 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. As security for CEI's indemnification obligations, $10.7 million of the cash paid was placed into an escrow account. The Company was paid $1.0 million from the escrow account for working capital adjustments in July 2013, at which time the remaining escrow was released to the sellers. Also included in the purchase consideration was $5.5 million paid to retire certain pre-existing CEI debt and settle pre-existing accounts receivable from CEI. There was no contingent purchase consideration associated with the acquisition of CEI.

The Company made an election under Section 338(h)(10) of the Internal Revenue Code, which resulted in tax deductible goodwill related to this transaction. The Company estimated that the tax deductible goodwill and intangibles resulting from the election will approximate $136.3 million, to be available for deduction against Federal and California state income taxes over a 15-year period.

Certain CEI personnel entered into long-term employment agreements with the Company and on July 2, 2012, the Company granted restricted stock units (“RSUs”) for an aggregate 2.0 million shares of common stock as long-term retention inducement grants. The RSUs had an estimated value of $11.9 million on the grant date, 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 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 partially 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 KGS reportable segment.

The transaction was 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 fair values of the major assets acquired and liabilities assumed as of the acquisition date (in millions):



Cash	$	8.9
Accounts receivable	9.3
Inventoried costs	12.3
Other current assets	8.9
Property and equipment	8.1
Intangible assets	38.0
Goodwill	104.2
Total assets	189.7
Current liabilities	(25.7		)
Net assets acquired	$	164.0

The amounts of revenue and operating income of CEI included in the Company's Consolidated Statement of Operations and Comprehensive Income (Loss) for the year ended December 30, 2012 was $68.2 million and $1.6 million, respectively.

Critical Infrastructure Business

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 $18.8 million.

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 PSS reportable segment.



Accounts receivable	$	23.4
Other assets	0.5
Intangible assets	2.0
Goodwill	2.6
Total assets	28.5
Current liabilities	(9.7		)
Net assets acquired	$	18.8

The goodwill recorded in this transaction is tax deductible.

SecureInfo Corporation

On November 15, 2011, the Company acquired SecureInfo Corporation (“SecureInfo”) for $20.3 million in cash, which included a $1.5 million earn-out that was paid in March 2012.

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 reportable 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 acquisition date. The following table summarizes the 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.

The amounts of revenue and operating income of SecureInfo included in the Company's Consolidated Statement of Operations and Comprehensive Income (Loss) for the year ended December 25, 2011 was $1.9 million and $0.1 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 included an approximate $5.8 million issuance premium and excluded 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.

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 reportable 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 as of July 27, 2011 (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.

The amounts of revenue and operating income of Integral included in the Company’s Consolidated Statements of Operations and Comprehensive Income for the year ended December 25, 2011 was $87.3 million and $7.1 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, including the assumed Herley Options. 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. There were no contingent liabilities associated with the acquisition of Herley.

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.

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 reportable 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.

The amounts of revenue and operating income of Herley included in the Company’s Consolidated Statements of Operations and Comprehensive Income for the year ended December 25, 2011 was $150.8 million and $12.7 million, respectively.

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 full year ended December 29, 2013. There are no material, nonrecurring pro forma adjustments directly attributable to the business combinations included in the reported pro forma revenue and operations 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):



	Year Ended December 25, 2011			Year Ended December 30, 2012
Pro forma revenues	$	1,046.9		$	1,019.5
Pro forma net loss before tax	(63.6		)	(132.0		)
Pro forma net loss	(67.1		)	(130.4		)
Net loss attributable to the registrant	(23.5		)	(112.9		)
Basic and diluted pro forma loss per share	$	(1.15	)	$	(2.31	)

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):



	Year Ended December 25, 2011			Year Ended December 30, 2012
Intangible amortization	$	32.8		$	16.2
Net change in stock compensation expense	(1.4		)	2.2
Net change in interest expense	(9.9		)	—
Net change in income tax expense	(1.6		)	—
Increase in weighted average common shares outstanding for shares issued and not already included in the weighted average common shares outstanding	30.7			9.6

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 re-measures these liabilities each reporting period and records changes in the fair value in its Consolidated Statement of Operations and Comprehensive Income (Loss). 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 30, 2012 and December 29, 2013 is summarized in the following table (in millions):



	SecureInfo			DEI			SCT			Total
Balance as of December 25, 2011	$	1.5		$	5.0		$	1.1		$	7.6
Cash payments	(1.5		)	(2.5		)	—			(4.0		)
Post acquisition adjustments reflected in operating results	—			(0.4		)	(1.1		)	(1.5		)
Balance as of December 30, 2012	—			2.1			—			2.1
Cash payments	—			(2.1		)	—			(2.1		)
Balance as of December 29, 2013	$	—		$	—		$	—		$	—

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 was obligated to pay certain additional contingent consideration (the “DEI Contingent Consideration”). The Company has paid $5.0 million related to the DEI Contingent Consideration, with the final payment of $2.1 million paid in April 2013.

As of December 25, 2011, the fair value of the SCT Contingent Consideration was $1.1 million and was estimated by applying the income approach, which is based on significant inputs that are not observable in the market, which Topic 820 refers to as Level 3 inputs. Key assumptions included a discount rate of 6.1%, a market participant cost of debt at the date of acquisition, and probability-adjusted levels for EBITDA. The fair value of the SCT Contingent Consideration was decreased by $1.1 million to zero and recognized as a credit to merger and acquisition related items during the three month period ended December 30, 2012.

- 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
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-SubTopic 10
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-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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Reference 8: http://www.xbrl.org/2003/role/presentationRef
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Reference 13: http://www.xbrl.org/2003/role/presentationRef
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Balance Sheet Details

12 Months Ended

Dec. 29, 2013

Balance Sheet Details Disclosure [Abstract]

Balance Sheet Details

The detail of certain assets in the Consolidated Balance Sheets consists of the following (in millions).

Cash and cash equivalents

The Company's cash equivalents consist of overnight cash sweep accounts that are invested on a daily basis. Cash and cash equivalents at December 30, 2012 and December 29, 2013 were $49.0 million and $55.7 million, respectively and approximated their fair value.

Net unrealized and realized gains recorded during the years ended December 30, 2012 and December 29, 2013 were immaterial.

Accounts receivable, net

Receivables including amounts due under long-term contracts are summarized as follows:



	December 30, 2012			December 29, 2013
Billed, current	$	137.9		$	150.2
Unbilled, current	135.4			117.9
Total current accounts receivable	273.3			268.1
Allowance for doubtful accounts	(1.4		)	(2.3		)
Total current accounts receivable, net	271.9			265.8
Unbilled, long-term (included in other assets)	0.3			0.1
Total accounts receivable, net	$	272.2		$	265.9

Unbilled receivables represent the balance of recoverable costs and accrued profit, composed principally of revenue recognized on contracts for which billings have not been presented to the customer because the amounts were earned but not contractually billable as of the balance sheet date. Retainages receivable were $3.5 million as of December 30, 2012 and $6.2 million as of December 29, 2013 and are included in accounts receivable, net in the Consolidated Balance Sheets.

U.S. Government contract receivables (included in accounts receivable, net)



	December 30, 2012		December 29, 2013
Billed	$	24.6	$	19.8
Unbilled	39.4		31.6
Total U.S. Government contract receivables	$	64.0	$	51.4

Inventoried costs, net of progress payments



	December 30, 2012			December 29, 2013
Raw materials	$	48.4		$	44.5
Work in process	36.5			24.3
Finished goods	7.3			4.6
Supplies and other	2.2			1.9
Subtotal inventoried costs	94.4			75.3
Less customer advances and progress payments	(0.1		)	(0.7		)
Total inventoried costs	$	94.3		$	74.6

Property and equipment, net



	December 30, 2012			December 29, 2013
Land and buildings	$	20.8		$	21.0
Computer equipment and software	17.2			20.0
Machinery and equipment	49.9			59.0
Furniture and office equipment	12.2			15.4
Facility under capital lease	1.0			1.0
Leasehold improvements	13.9			13.7
Construction in progress	5.8			4.8
Property and equipment	120.8			134.9
Accumulated depreciation and amortization	(35.2		)	(50.1		)
Total property and equipment, net	$	85.6		$	84.8

Depreciation expense was $10.0 million, $14.1 million and $17.2 million for the years ended December 25, 2011, December 30, 2012, and December 29, 2013, respectively.

Debt

12 Months Ended

Dec. 29, 2013

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 December 29, 2013, the Company had 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 December 29, 2013, the Company was in compliance with the covenants contained in the Indenture governing the Notes. In addition, the ability to pay dividends is restricted by both the indenture entered into in connection with the issuance of the Notes due 2017 and the amended credit and security agreement discussed below.

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. 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.

The Notes were issued in three offerings.

$225 million 10% Senior Secured Note Offering, May 2010

On May 19, 2010, the Company issued Notes in the aggregate principal amount of $225.0 million in an unregistered offering pursuant to Rule 144A and Regulation S under the Securities Act, and on August 11, 2010, the Company completed an exchange offer for such Notes pursuant to a registration rights agreement entered into in connection with the issuance thereof. The proceeds were primarily used to finance the acquisitions of Gichner Holdings, Inc., DEI Services Corporation, and Southside Container & Trailer, LLC, as well as to refinance the Company's existing debt.

$285 million 10% Senior Secured Note Offering, March 2011

On March 25, 2011, the Company issued Notes in the aggregate principal amount of $285.0 million in an unregistered offering pursuant to Rule 144A and Regulation S under the Securities Act and received approximately $314.0 million in cash proceeds from the offering, which includes an approximate $20.0 million of issuance premiums and $9.0 million of accrued interest, which proceeds were used, together with cash contributions of $45.0 million from the Company, to finance the acquisition of all of the outstanding shares of common stock of Herley (see Note 3), to pay related fees and expenses and for general corporate purposes. The effective interest rate on this issuance was 8.5%. On July 29, 2011, the Company completed an exchange offer for these Notes pursuant to a registration rights agreement entered into in connection with this issuance.

$115 million 10% Senior Secured Note Offering, July 2011

On July 27, 2011, the Company issued Notes in the aggregate principal amount of $115.0 million in an unregistered offering pursuant to Rule 144A and Regulation S under the Securities Act and received approximately $122.5 million in cash proceeds from the issuance of the Notes, which includes an approximate $5.8 million of issuance premiums and $1.7 million of accrued interest. These proceeds were used to finance, in part, the cash portion of the purchase price for the acquisition of Integral (see Note 3), to refinance existing indebtedness of Integral, to make certain severance payments in connection with the acquisition of Integral and to pay related fees and expenses. The effective interest rate on this issuance was 8.9%. On December 2, 2011, the Company completed an exchange offer for these Notes pursuant to a registration rights agreement entered into in connection with this issuance.


(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”) to 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 December 29, 2013, there were no outstanding borrowings on the Amended Revolver and $10.7 million was outstanding on letters of credit resulting in net borrowing base availability of $79.9 million. The Company was in compliance with the financial covenants as of December 29, 2013.

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 Herley. The balance as of December 29, 2013 was $4.8 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, as of December 29, 2013.

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 30, 2012 and December 29, 2013 are presented in the following table:



	As of December 30, 2012						As of December 29, 2013
$ in millions	Principal		Carrying Amount		Fair Value		Principal		Carrying Amount		Fair Value
Long-term debt	$	630.7	$	649.4	$	690.5	$	629.8	$	644.3	$	679.7

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 $14.5 million as of December 29, 2013, which is the difference between the carrying amount of $644.3 million and the principal amount of $629.8 million represented in the previous table, is being amortized to interest expense over the terms of the related debt.

Future maturities of long-term debt for each of the years ending 2014 through 2016 are $1.0 million per year, $626.0 million in 2017, and $0.8 million in 2018.

Lease Commitments

12 Months Ended

Dec. 29, 2013

Leases [Abstract]

Lease Commitments

The Company leases certain facilities and equipment under operating and capital leases having terms expiring at various dates through 2023.

Future minimum lease payments under capital and operating leases as of December 29, 2013, which does not include $7.1 million in sublease income on the Company's operating leases, are as follows (in millions):



Year	Capital Leases		Net Operating Leases
2014	$	0.4	$	15.9
2015	0.1		13.0
2016	—		10.9
2017	—		9.6
2018	—		8.8
Thereafter	—		12.7
Total future minimum lease payments	0.5		$	70.9
Less amount representing interest	0.1
Present value of capital lease obligations	0.4
Less current portion	0.3
Long-term capital lease obligations	$	0.1

The following is an analysis of the leased property under capital leases by major class (in millions):



	December 30, 2012		December 29, 2013
Classes of Property
Facilities	$	1.0	$	1.0
Vehicles	0.5		0.5
Office equipment	0.5		0.4
Total	2		1.9
Less: Accumulated amortization	1.5		1.7
	$	0.5	$	0.2

Amortization expense related to capital leases was $0.1 million, $0.1 million and $0.2 million for the years ended December 25, 2011, December 30, 2012 and December 29, 2013, respectively.

Gross rent expense under operating leases for the years ended December 25, 2011, December 30, 2012, and December 29, 2013 was $12.8 million, $21.1 million, and $16.7 million, respectively. Total sublease income for the years ended December 25, 2011, December 30, 2012, and December 29, 2013, totaling $1.3 million, $2.7 million, and $2.3 million, respectively, has been netted against rent expense.

Based on management's assessment of assumptions considering existing market conditions, sublease rental rates and recoverability of operating lease expenses for the Company's vacant properties and due to the Company's actions to consolidate facilities, the Company periodically reevaluates its accrual for excess facilities. In 2011, as a result of the Integral acquisition, the Company acquired 131,450 rentable square feet of property located in Maryland with a lease term through April 2020. Prior to the acquisition, Integral had vacated the majority of this space and subleased approximately 83,000 square feet for an initial term which commenced on October 1, 2010 and ends on October 31, 2015. The Company recorded a liability at fair value of approximately $19.0 million at the merger date related to this excess facility.

The Company's accrual for excess facilities was $18.5 million, $18.7 million, and $12.4 million as of December 25, 2011, December 30, 2012 and December 29, 2013, respectively. The Company estimates that the remaining accrual will be paid through 2020.

The accrual for excess facilities is as follows (in millions):



	Excess Facilities
Balance as of December 25, 2011	$	18.5
Fair value of liability assumed in acquisition	1.8
Cash payments	(1.6		)
Balance as of December 30, 2012	18.7
Adjustments of excess facility accruals	(4.7		)
Cash payments	(1.6		)
Balance as of December 29, 2013	$	12.4

The lease on certain office facilities includes scheduled base rent increases over the term of the lease. The total amount of the base rent payments is being charged to expense on the straight-line method over the term of the lease. In addition to the base rent payment, the Company pays a monthly allocation of the building's operating expenses. The Company has recorded deferred rent, included in accrued expenses and other long-term liabilities in the Consolidated Balance Sheets, of $1.0 million, $1.3 million, and $3.2 million at December 25, 2011, December 30, 2012 and December 29, 2013, respectively, to reflect the excess of rent expense over cash payments since inception of the respective leases. The adjustment to the accrual in 2013 was primarily due to a change in the necessary estimated excess facility accrual of office space at our Colombia, Maryland administrative facilities.

Net Loss Per Common Share

12 Months Ended

Dec. 29, 2013

Earnings Per Share [Abstract]

Net Loss Per Common Share

The Company calculates net income (loss) per share in accordance with FASB 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.

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



	December 25, 2011	December 30, 2012	December 29, 2013
Shares from stock options and awards	2.1	3.6	2.6

Income Taxes

12 Months Ended

Dec. 29, 2013

Income Tax Disclosure [Abstract]

Income Taxes

The components of income (loss) from continuing operations before income taxes and equity earnings are listed below (in millions):



	2011			2012			2013
Domestic	$	(20.7	)	$	(120.3	)	$	(39.4	)
Foreign	(0.9		)	5.8			7.5
Total	$	(21.6	)	$	(114.5	)	$	(31.9	)

The provision (benefit) for income taxes from continuing operations for the years ended December 25, 2011, December 30, 2012, and December 29, 2013 are comprised of the following (in millions):



	2011			2012			2013
Federal income taxes:
Current	$	(1.5	)	$	—		$	(1.7	)
Deferred	0.6			(3.5		)	0.3
Total Federal	(0.9		)	(3.5		)	(1.4		)
State and local income taxes
Current	3.1			0.8			2.0
Deferred	0.8			0.4			(0.7		)
Total State and local	3.9			1.2			1.3
Foreign income taxes:
Current	0.4			0.1			0.1
Deferred	(1.5		)	0.6			—
Total Foreign	(1.1		)	0.7			0.1
Total	$	1.9		$	(1.6	)	$	—

A reconciliation of the total income tax provision (benefit) to the amount computed by applying the statutory federal income tax rate of 35% to income (loss) from continuing operations before income tax provision for the years ended December 25, 2011, December 30, 2012 and December 29, 2013 is as follows (in millions):



	2011			2012			2013
Income tax expense (benefit) at federal statutory rate	$	(7.6	)	$	(40.1	)	$	(11.1	)
State taxes, net of federal tax benefit and valuation allowance	3.1			0.7			1.8
Difference in tax rates between U.S. and foreign	(0.1		)	(1.5		)	(2.6		)
Release of foreign valuation allowance	(0.7		)	—			—
Increase (decrease) in federal valuation allowance	4.7			14.2			13.0
Nondeductible expense	0.4			0.3			0.7
Increase (decrease) in reserve for uncertain tax positions	(1.7		)	0.1			(1.4		)
Transaction costs	2.3			0.1			—
Changes to indefinite life items and separate state deferred taxes	1.5			(3.0		)	(0.4		)
Impact of purchase accounting	—			—			—
Goodwill impairment	—			27.6			—
Total	$	1.9		$	(1.6	)	$	—

The tax effects of temporary differences that give rise to the deferred tax assets and deferred tax liabilities as of December 30, 2012 and December 29, 2013 are as follows (in millions):



	2012			2013
Deferred tax assets:
Allowance for doubtful accounts	$	0.4		$	0.7
Sundry accruals	3.3			2.8
Vacation accrual	5.1			5.2
Stock-based compensation	4.6			6.1
Payroll related accruals	2.7			3.3
Lease accruals	9.7			9.1
Investments	1.9			1.9
Net operating loss carryforwards	124.8			118.2
Tax credit carryforwards	3.7			5.1
Deferred revenue	2.1			2.4
Reserves and other	10.2			10.2
	168.5			165
Valuation allowance	(110.4		)	(123.1		)
Total deferred tax assets, net of allowance	58.1			41.9
Deferred tax liabilities:
Unearned revenue	(42.0		)	(35.8		)
Other intangibles	(15.7		)	(4.7		)
Property and equipment, principally due to differences in depreciation	(7.9		)	(7.7		)
Other	—			(0.9		)
Total deferred tax liabilities	(65.6		)	(49.1		)
Net deferred tax asset (liability)	$	(7.5	)	$	(7.2	)

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 and certain foreign and separate state deferred tax assets. Management will continue to evaluate the necessity to maintain a valuation allowance against the Company's net deferred tax assets. During fiscal 2013, the Company recorded a net increase in its federal valuation allowance of $13.0 million.

At December 29, 2013, the Company had federal tax loss carryforwards of $325.4 million and various state tax loss carryforwards of $237.4 million including net operating losses resulting from stock options of $14.4 million for federal and state, which if recognized would result in additional paid-in-capital. The federal tax loss carryforwards will begin to expire in 2018 and state tax loss carryforwards will begin to expire in 2014 in certain states.

Federal and state income tax laws impose restrictions on the utilization of net operating loss (“NOL”) and tax credit carryforwards in the event that an “ownership change” occurs for tax purposes, as defined by Section 382 of the Internal Revenue Code of 1986, as amended (“Section 382”). 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 at the time of the ownership change by the greater of the long-term tax-exempt rate determined by the Internal Revenue Service in the month of the ownership change or the two preceding months. This base limitation is subject to adjustments, including an increase for built-in gains recognized in the five year period after the ownership change. In March 2010, an “ownership change” occurred that will limit the utilization of NOL carryforwards. In July 2011, another “ownership change” occurred. The March 2010 ownership change limitation is more restrictive. In prior years the company acquired corporations with NOL carryforwards at the date of acquisition (Acquired NOLs). The Acquired NOLs are subject to separate limitations that may further restrict the use of Acquired NOLs. As a result, the Company's federal annual utilization of NOL carryforwards will be limited to at least $27 million a year for the five years succeeding the March 2010 ownership change and at least $11.6 million for each year thereafter subject to separate limitations for Acquired NOL. If the entire limitation amount is not utilized in a year, the excess can be carried forward and utilized in future years. For the year ended December 29, 2013, 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 cause 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.

The Company has not provided deferred U.S. income taxes or foreign withholding taxes of approximately $15.7 million on temporary differences relating to the outside basis in its investment in foreign subsidiaries which are essentially permanent in duration. It is the Company's intention to permanently reinvest undistributed earnings of its foreign subsidiaries. As of December 29, 2013 the Company has $16.0 million of cash and cash equivalents available for distribution.

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.

The following table summarizes the activity related to the Company's unrecognized tax benefits (in millions):



Balance as of December 26, 2010	$	12.4
Increases related to prior periods (acquired entities)	0.5
Increases related to current year tax positions	0.2
Expiration of applicable statutes of limitations	(0.6		)
Settlements with taxing authorities	(2.4		)
Balance as of December 25, 2011	10.1
Increases related to prior periods (acquired entities)	3.7
Increases related to current year tax positions	—
Expiration of applicable statutes of limitations	(0.1		)
Settlements with taxing authorities	(0.3		)
Balance as of December 30, 2012	13.4
Increases related to prior periods (acquired entities)	3.3
Increases related to current year tax positions	1.7
Expiration of applicable statutes of limitations	(2.6		)
Settlements with taxing authorities	—
Balance as of December 29, 2013	$	15.8

Included in the balance of unrecognized tax benefits at December 29, 2013, are $15.8 million of tax benefits that, if recognized, would affect the effective tax rate. Included in this amount is $14.5 million that would become a deferred tax asset if the tax benefit were recognized. As such, this benefit may be impacted by a corresponding valuation allowance depending upon the Company's consolidated financial position at the time the benefits are recognized.

The Company recognizes interest and penalties related to unrecognized tax benefits in its provision for income taxes. For the years ended December 25, 2011, December 30, 2012 and December 29, 2013, the Company recorded $0.3 million, $0.4 million and $0.2 million, respectively, in interest or penalties. These amounts are netted by a benefit for interest and penalties related to the reversal of prior positions as noted above of $0.4 million, $0.1 million, and $0.2 million for the years ended December 25, 2011, December 30, 2012, and December 29, 2013, respectively. As of December 25, 2011, December 30, 2012, and December 29, 2013, the Company had recorded total interest and penalties of $0.4 million, $0.7 million, and $0.7 million, respectively.

The Company believes that that no material amount of the liabilities for uncertain tax positions will expire within 12 months of December 29, 2013.

Discontinued Operations

12 Months Ended

Dec. 29, 2013

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, these businesses have been classified as held for sale and reported in discontinued operations in the accompanying 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 discontinued businesses. The Company sold its domestic operations to two buyers for approximately $0.8 million in cash consideration and the assumption of certain liabilities. The Company received $0.3 million in cash in 2012 from the first buyer and $0.5 million in cash in April 2013 from the second buyer. The Company recorded a $1.2 million impairment charge in the first quarter of 2013 related to its revised estimate of the fair value of these operations.

The following table presents the results of discontinued operations including gain and loss on disposals which is included in loss before taxes (in millions):



	Year ended December 25, 2011			Year ended December 30, 2012			Year ended December 29, 2013
Revenue	$	9.2		$	18.5		$	3.7
Loss before taxes	(1.3		)	(1.8		)	(5.3		)
Benefit for income taxes	(0.6		)	(0.3		)	—
Net loss	$	(0.7	)	$	(1.5	)	$	(5.3	)

The benefit for income taxes for the year ended December 25, 2011 and December 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 Consolidated Balance Sheets as of December 30, 2012 and December 29, 2013 (in millions):



	December 30, 2012		December 29, 2013
Accounts receivable, net	$	3.4	$	—
Inventoried costs	3.0		—
Other current assets	0.2		—
Current assets of discontinued operations	$	6.6	$	—
Property and equipment, net	$	0.4	$	—
Other assets	0.4		—
Long-term assets of discontinued operations	$	0.8	$	—
Accrued expenses and accounts payable	$	4.4	$	1.1
Billings in excess of costs and earnings on uncompleted contracts	0.1		—
Other current liabilities	0.4		1.4
Current liabilities of discontinued operations	$	4.9	$	2.5
Other long-term liabilities	$	0.3	$	0.2
Long-term liabilities of discontinued operations	$	0.3	$	0.2

- 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 2
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1436-107760

Reference 2: 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 3: 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 4: 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 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e957-107759

Reference 6: 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 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 4
-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
-SubTopic 10
-Section 45
-Paragraph 5
-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

+ Details

Fair Value Measurement	12 Months Ended
Fair Value Measurement	Dec. 29, 2013
Fair Value Disclosures [Abstract]
Fair Value Measurement	Fair Value Measurement The Company adopted Topic 820 with the exception of the application of the statement to non-recurring nonfinancial assets and nonfinancial liabilities. Non-recurring nonfinancial assets and nonfinancial liabilities for which it has not applied the provisions of Topic 820 include those measured at fair value in goodwill impairment testing, indefinite lived intangible assets measured at fair value for impairment testing, asset retirement obligations initially measured at fair value, and those assets and liabilities initially measured at fair value in a business combination. Topic 820 establishes a valuation hierarchy for disclosure of the inputs to valuation used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on the Company's own assumptions used to measure assets and liabilities at fair value. A financial asset or liability's classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.

- 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 + Details

Stockholders' Equity

12 Months Ended

Dec. 29, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stockholders' Equity

Stockholders’ Equity


(a)	Common Stock

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 December 1, 2011, the Company repurchased in the open market from an institutional investor 2.0 million shares of its common stock for $5.45 per share, in a block transaction in compliance with legal requirements.

On July 27, 2011, in connection with the acquisition of Integral, the Company issued approximately 10.4 million shares of its common stock to shareholders of Integral. See Note 3 for a complete description of this transaction.

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.

(b) Preferred Stock

On March 8, 2011, all of the 10,000 shares of the previously issued and outstanding shares of Series B Convertible Preferred Stock (“Preferred Stock”) were redeemed for 100,000 shares of common stock. Prior to the redemption, the Preferred Stock had a total liquidation preference of $5.0 million. In accordance with Topic 260, the Preferred Stock was considered a participating security for purposes of computing basic earnings per share prior to redemption.


(c)	Stock Option Plans and Restricted Stock Unit Plans

The Company's board of directors (“Board”) may grant equity-based awards to selected employees, directors and consultants of the Company pursuant to its existing equity incentive plans. In February 2005, the Board approved the 2005 Equity Incentive Plan (“2005 Plan”). The 2005 Plan was subsequently approved by a majority of the Company's stockholders on May 18, 2005. In March 10, 2011, the Board approved the 2011 Equity Incentive Plan (“2011 Plan”). The 2011 Plan was subsequently approved by a majority of the Company's stockholders on May 27, 2011. Each of the 2005 Plan and the 2011 Plan permits the Board to issue a wide-variety of awards, including restricted stock units, restricted stock, stock appreciation rights, stock options and deferred stock units. If any shares covered by an award under the 2005 Plan or 2011 Plan are not purchased or are forfeited, or if an award otherwise is terminated, canceled or retired, such shares are again made available for awards under the 2005 Plan and 2011 Plan. As of December 29, 2013, there are approximately 362,000 and 1.0 million shares reserved for issuance for future grant under the 2005 Plan and 2011 Plan, respectively. The Board may amend or terminate the 2005 Plan or 2011 Plan at any time. Certain amendments, including an increase in the share reserve, require stockholder approval. Generally, options and restricted stock units outstanding vest over periods not exceeding ten years. When the Company grants stock options, they are granted with a per share exercise price not less than the fair market value of the Company's common stock on the date of grant, and generally would be exercisable for up to ten years from the grant date.

Integral Stock Option Plans. All outstanding options to purchase shares of Integral common stock that were not canceled and exchanged for a cash payment upon completion of the Integral merger, were assumed by the Company and converted into options to purchase shares of the Company's common stock (with the number of shares subject to each such option and the exercise price applicable to each such option adjusted based on the applicable exchange ratio) (the “Assumed Options”). The Company assumed each such stock option in accordance with the terms and conditions of the applicable Integral option plan and stock option agreement, subject to the adjustments described in the preceding sentence. On February 20, 2012, the Board confirmed (i) the assumption of Integral's 2008 Stock Incentive Plan (the “2008 Plan”), pursuant to NASDAQ Rule 5635, which provides that shares available under certain plans acquired in mergers and other acquisitions may be used for certain post-transaction grants without further stockholder approval and (ii) an amendment to the 2008 Plan, in order to permit the future grant of awards, including restricted stock unit awards, by the Company pursuant to the plan. The 2008 Plan was approved by Integral's Board of directors in December 2007 and by Integral's stockholders in February 2008. The terms and conditions of specific awards are set at the discretion of the Board. As of December 29, 2013, there are approximately 1.3 million shares of the Company's common stock available for issuance under the 2008 Plan. The shares of common stock available for issuance under the 2008 Plan may be used to grant awards, including stock options, stock appreciation rights, restricted stock and restricted stock units, to any employee, director or consultant who was not an employee, director or consultant of the Company prior to the consummation of the Integral merger. The Board may amend or terminate the 2008 Plan at any time. However, certain amendments, including an increase in the share reserve, would require stockholder approval.

Herley Stock Option Plans. All outstanding options to purchase shares of Herley common stock that were not canceled and exchanged for a cash payment upon completion of the Herley merger, were assumed by the Company and converted into options to purchase shares of the Company's common stock (with the number of shares subject to each such option and the exercise price applicable to each such option adjusted based on the applicable exchange ratio). The Company assumed each such stock option in accordance with the terms and conditions of the applicable Herley option plan and stock option agreement, subject to the adjustments described in the preceding sentence. On December 30, 2012, the Board confirmed (i) the assumption of Herley's 2010 Stock Plan (the “2010 Plan”), pursuant to NASDAQ Rule 5635, and (ii) an amendment to the 2010 Plan, in order to permit the future grant of awards, including restricted stock unit awards, by the Company pursuant to the plan. The 2010 Plan was approved by Herley's Board of Directors in January 2010 and by Herley's stockholders in March 2010. The terms and conditions of specific awards are set at the discretion of the Board. As of December 29, 2013, there are approximately 365,000 shares of the Company's common stock available for issuance under the 2010 Plan. These shares are available to grant awards, including stock options, shares of common stock and restricted stock units, to any employee, director or consultant who was not an employee, director or consultant of the Company prior to the consummation of the Herley merger. The Board of the Company may amend or terminate the 2010 Plan at any time. However, certain amendments, including an increase in the share reserve, would require stockholder approval.

Henry Bros. Electronics Stock Option Plans. HBE's stock option and stock incentive plans acquired in connection with the Company's acquisition of HBE were terminated on December 15, 2010, and no further grants may be made under these plans after such date. Award grants that were outstanding under these plans on December 15, 2010 will continue to be governed by their existing terms and may be exercised for shares of the Company's common stock at any time prior to the expiration of the option term or any earlier termination of those options in connection with the option holder's cessation of service with the Company. Stock options granted under these plans were incentive stock options, may generally be exercised from one to ten years after the date of grant and generally vest ratably over three to five years. Certain of these options had change in control provisions that accelerated the vesting of the options.

Digital Fusion Inc. Stock Option and Stock Incentive Plans. DFI's stock option and stock incentive plans acquired in connection with the Company's acquisition of DFI were terminated on December 24, 2008, and no further grants may be made under these plans after such date. Award grants that were outstanding under these plans on December 24, 2008 will continue to be governed by their existing terms and may be exercised for shares of the Company's common stock at any time prior to the expiration of the ten-year option term or any earlier termination of those options in connection with the option holder's cessation of service with the Company. Stock options granted under these plans included incentive stock options or non-statutory stock options. All non-statutory options vest upon change in control and were 100% vested on December 24, 2008. With respect to incentive stock options, the qualified stock option plans provide that the exercise price of each such option must be at least equal to 100% of the fair market value of its common stock on the date of grant. Stock options granted under these plans may generally be exercised from one to ten years after the date of grant. Certain of these options had change in control provisions that extended the exercise period for grants for two years from the transaction closing date. Awards granted under these plans generally vest equally over three years; however, in connection with the Company's acquisition of DFI the plans were amended to include immediate vesting of all unvested grants upon any future change in control of the Company. DFI also had certain options granted outside of its qualified stock option plans. These non-qualified “out of plan” stock options expire 10 years from grant date.

RSU Agreements. On January 10, 2007, the Compensation Committee of the Board approved a form of Restricted Stock Unit Agreement (an RSU Agreement) to govern the issuance of restricted stock units (“RSUs”) to executive officers under the Company's 2005 Plan. On November 14, 2011, the Compensation Committee of the Board approved a form of RSU Agreement to govern the issuance of RSUs to executive officers under the Company's 2011 Plan. Each RSU represents the right to receive a share of common stock (a “Share”) on the vesting date. Unless and until the RSUs vest, the Employee will have no right to receive Shares under such RSUs. Prior to actual distribution of Shares pursuant to any vested RSUs, such RSUs will represent an unsecured obligation of the Company, payable (if at all) only from the general assets of the Company. The RSUs that may be awarded to executive officers under an RSU Agreement will vest according to vesting schedules specified in the notice of grant accompanying each grant. The Company recognizes compensation expense on a straight-line basis over the vesting periods based on the market price of the Company's stock on the grant date. The awards granted in 2011, 2012, and 2013 had vesting periods ranging from 2 to 10 years; 1 to 10 years, and 1 to 10 years, respectively. Some of the grants for these years have accelerated vesting occurring upon change of control or termination. Upon exercise of the RSU, the Company issues new shares of common stock.

The Company records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes option-pricing model or a trinomial lattice options pricing model with the weighted average assumptions (annualized percentages) included in the following table. Awards with graded vesting are recognized using the straight-line method with the following assumptions:



	2011	2012	2013
Stock Options
Expected life (1)	2.2	10.0	6.25 - 10.0
Risk-free interest rate(2)	0.1% - 3.4%	1.6% - 2.3%	1.1% - 2.9%
Volatility(3)	29.3% - 65.3%	59.0% - 59.7%	56.8% - 61.2%
Forfeiture rate(4)	16.3%	16.3%	10%
Dividend yield(5)	—%	—%	—%

(1) In 2011 and 2012, no unvested options were granted and the expected life was equal to the life of the option.

(2) The risk-free interest rate is based on U.S. Treasury yields in effect at the time of grant with a term equal to the expected term of the options.

(3) In 2011, 2012, and 2013, the Company estimated implied volatility based upon trailing volatility.

(4) Forfeitures are estimated at the time of grant based upon historical information. Forfeitures will be revised, if necessary, in subsequent periods if actual forfeitures differ from estimates.

(5) The Company has no history or expectation of paying dividends on its common stock.

A summary of the status of the Company's stock option plan as of December 29, 2013 and changes in options outstanding under the plan for the year ended December 29, 2013 is as follows:



	Number of Shares Under Option		Weighted-Average Exercise Price per Share		Weighted- Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
	(000's)					(000's)
Options outstanding at December 30, 2012	1,133		$	27.66	2.8	$	80.0
Granted	1,012		$	5.03	—	—
Exercised	(7	)	$	5.05	—	—
Forfeited or expired	(417	)	$	32.95	—	—
Options outstanding at December 29, 2013	1,721		$	13.16	5.8	$	2,179.0
Options exercisable at December 29, 2013	821		$	22.09	2.4	$	249.0

As of December 29, 2013, there was $2.1 million of total unrecognized stock-based compensation expense related to nonvested options which is expected to be recognized over a remaining weighted-average vesting period of 4.2 years. Upon exercise of an option, the Company issues new shares of common stock.

During the years ended December 25, 2011, December 30, 2012, and December 29, 2013 the following values relate to the grants and exercises under the Company's option plans:



	2011		2012		2013
Weighted average grant date fair value of options granted	$	2.38	$	3.56	$	2.86
Total intrinsic value of options exercised (in thousands)	$	1,832	$	—	$	—

The following table summarizes the Company's Restricted Stock Unit activity:



	Restricted Stock Units (000's)		Weighted-Average Grant Date Fair Value
Nonvested balance at December 30, 2012	3,670		$	7.53
Grants	53		$	12.69
Vested	(132	)	$	12.89
Forfeitures	(243	)	$	9.34
Vested but not released	(3	)	$	12.39
Nonvested balance at December 29, 2013	3,345		$	7.26

As of December 29, 2013, there was $15.8 million of total unrecognized stock-based compensation expense related to nonvested restricted stock units which is expected to be recognized over a remaining weighted-average vesting period of 3.2 years. The fair value of RSU awards that vested in 2011, 2012, and 2013 was $0.8 million, $1.9 million, and $1.7 million, respectively.


(d)	Employee Stock Purchase Plan

In August 1999, the Board approved the 1999 Employee Stock Purchase Plan (“Purchase Plan”). A total of 2,689 thousand shares of Common Stock have been authorized for issuance under the Purchase Plan. The Purchase Plan qualifies as an employee stock purchase plan within the meaning of Section 423 of the Internal Revenue Service Code. Unless otherwise determined by the Compensation Committee of the Board, all employees are eligible to participate in the Purchase Plan so long as they are employed by the Company (or a subsidiary designated by the Board) for at least 20 hours per week and were customarily employed by the Company (or a subsidiary designated by the Board) for at least 5 months per calendar year.

Employees who actively participate in the Purchase Plan are eligible to have up to 15% of their earnings for each purchase period withheld pursuant to the Purchase Plan. The amount that is withheld is used at various purchase dates within the offering period to purchase shares of Common Stock. The price paid for Common Stock at each such purchase date is equal to the lower of 85% of the fair market value of the Common Stock at the commencement date of that offering period or 85% of the fair market value of the Common Stock on the relevant purchase date. Employees are also able to end their participation in the offering at any time during the offering period, and participation ends automatically upon termination of employment. From the Purchase Plan's inception through December 29, 2013, the cumulative number of shares of Common Stock that have been issued under the Purchase Plan is 1,784 thousand and approximately 1,924 thousand shares are available for future issuance. During fiscal 2012, approximately 781 thousand shares were issued under the plan at an average price of $5.19.

The fair value of Kratos' Purchase Plan shares for 2013 was estimated using the Black-Scholes option pricing model. The assumptions and resulting fair values of options granted for 2012 and 2013 were as follows:



	Offering Periods January 1 to December 31, 2011	Offering Periods January 1 to December 31, 2012	Offering Periods January 1 to December 31 2013
Expected term (in years)(1)	0.5	0.5	0.5
Risk-free interest rate(2)	0.10% - 0.19%	0.06% - 0.16%	0.10% - 0.11%
Expected volatility(3)	28.5% - 43.6%	49.70% - 65.73%	36.95% - 43.70%
Expected dividend yield(4)	0%	0%	0%
Weighted average grant-date fair value per share	$3.05	$1.93	$1.50


(1)	The expected term is equivalent to the offering period.


(2)	The risk-free interest rate is based on U.S. Treasury yields in effect at the time of grant with a term equal to the expected term.

(3) The Company estimated implied volatility based upon trailing volatility.

(4) The Company has no history or expectation of paying dividends on its common stock.

As of December 29, 2013, there was no material unrecognized compensation expense related to the Employee Stock Purchase Plan.


(e)	Stockholder Rights Agreement

On December 16, 2004, the Company entered into a Stockholder Rights Agreement (the “Rights Agreement”). Under the terms of the Rights Agreement, initially, the rights (“Rights”) will attach to all certificates representing shares of outstanding Company common stock and no separate rights certificates will be distributed. Subject to the provisions of the Rights Agreement, the Rights will separate from the Company common stock and the distribution date will occur upon the earlier of (i) ten business days following a public announcement that a person or group of affiliated or associated persons has acquired or obtained the right to acquire beneficial ownership of 15% or more of the then-outstanding common stock (an Acquiring Person), or (ii) ten business days (or such later date as may be determined by action of the Board) prior to such time as any person becomes an Acquiring Person following the commencement of a tender offer or exchange offer that would result in a person or group becoming an Acquiring Person. An Acquiring Person does not include certain persons specified in the Rights Agreement. The Rights Agreement was amended on May 14, 2012 to, among other things, redefine the term Acquiring Person to exclude a newly defined term Exempt Person from the definition of Acquiring Person. The term Exempt Person is defined to include: (A) the Company; (B) any subsidiary of the Company; (C) any employee benefit plan maintained by the Company or any of its subsidiaries; (D) any trustee or fiduciary with respect to such employee benefit plan acting in such capacity or trustee or fiduciary holding shares of Company Common Stock for the purpose of funding any such plan or employee benefits; (E) Oak Investment Partners IX, L.P., Oak IX Affiliates Fund, L.P., Oak IX Affiliates Fund-A, L.P., Oak X Affiliates Fund, L.P., Oak Investment Partners X, L.P., Oak Investment Partners XIII, L.P., or their Affiliates and Associates (collectively, the “Oak Parties) as long as the Oak Parties, individually or in the aggregate, are not the beneficial owner of more than 25% of the outstanding shares of Company stock (other than pursuant to a transaction authorized in writing in advance by the Board of Directors) and certain specified criteria are met.

On December 16, 2004, the Board authorized and declared a dividend of one right (a Right) to purchase one one-hundredth of a share of the Company's Series C Preferred Stock (Series C Preferred) for each outstanding share of common stock, par value $0.001, to stockholders of record as of the close of business December 27, 2004. Each Right entitles the registered holder, subject to the terms of the Rights Agreement, to purchase from the Company one one-hundredth of a share of Series C Preferred Stock at a purchase price of $54.00, subject to adjustment.

The Rights are not exercisable until the distribution date and will expire at the close of business on the tenth anniversary of the Rights Agreement unless earlier redeemed or exchanged by the Company.

Retirement Plans	12 Months Ended
Retirement Plans	Dec. 29, 2013
Compensation and Retirement Disclosure [Abstract]
Retirement Plans	Retirement Plans The Company provides eligible employees the opportunity to participate in defined-contribution savings plans (commonly known as 401(k) plans), which permit contributions on a before-tax basis. Generally, salaried employees and certain hourly employees are eligible to participate in the plans. Under most plans, the employee may contribute to various investment alternatives. In certain plans, the Company matches a portion of the employees' contributions. The Company's contributions to these defined-contribution plans totaled $7.3 million in 2011, $5.1 million in 2012 and $6.0 million in 2013.

Significant Customers	12 Months Ended
Significant Customers	Dec. 29, 2013
Segment Reporting [Abstract]
Significant Customers	Significant Customers Revenue from the U.S. Government (which includes Foreign Military Sales) includes revenue from contracts for which Kratos 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 $534.5 million, $627.8 million, and $606.7 million or 75%, 65%, and 64%, of total revenue for the years ended December 25, 2011, December 30, 2012, and December 29, 2013, respectively.

Segment Information

12 Months Ended

Dec. 29, 2013

Segment Reporting [Abstract]

Segment Information

The Company operates in two reportable business segments: Kratos Government Solutions and Public Safety & Security. The KGS segment provides products, solutions and services primarily for mission critical national security priorities. KGS customers primarily include national security related agencies, the DoD, intelligence agencies and classified agencies. The PSS segment provides independent integrated solutions for advanced homeland security, public safety, critical infrastructure, and security and surveillance systems for government and commercial applications. PSS customers are in the critical infrastructure, power generation, power transport, nuclear energy, financial, IT, healthcare, education, transportation and petro-chemical industries, as well as certain government and military customers.

The Company organizes its reportable business segments based on the nature of the products and services offered. Transactions between segments are generally negotiated and accounted for under terms and conditions similar to other government and commercial contracts. This presentation is consistent with the Company's operating structure. In the following table, total operating income of the reportable business segments is reconciled to the corresponding consolidated amount. The reconciling item “corporate activities” includes costs for certain stock-based compensation programs (including stock-based compensation costs for stock options, employee stock purchase plan 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 segments, and other miscellaneous corporate activities.

Revenues, operating income (loss) and assets disclosed below provided by the Company's reportable segments for the years ended December 25, 2011, December 30, 2012, and December 29, 2013, are as follows (in millions):



	2011			2012			2013
Revenues:
Kratos Government Solutions
Service revenues	$	238.8		$	264.0		$	233.9
Product sales	362.9			519.2			507.0
Total Kratos Government Solutions	601.7			783.2			740.9
Public Safety & Security
Service revenues	112.2			186.0			209.7
Product sales	—			—			—
Total Public Safety & Security	112.2			186.0			209.7
Total revenues	$	713.9		$	969.2		$	950.6
Depreciation and amortization:
Kratos Government Solutions	$	45.7		$	54.5		$	49.9
Public Safety & Security	2.3			3.5			3.5
Total depreciation and amortization	$	48.0		$	58.0		$	53.4
Operating income (loss) from continuing operations:
Kratos Government Solutions	$	35.4		$	(41.5	)	$	26.4
Public Safety & Security	9.9			(2.5		)	8.3
Corporate activities	(15.8		)	(5.7		)	(2.9		)
Total operating income (loss) from continuing operations	$	29.5		$	(49.7	)	$	31.8

Revenues from foreign customers were approximately $54.3 million or 8%, $116.2 million or 12% and $100.9 million or 11% of total revenue for the years ended December 25, 2011, December 30, 2012, and December 29, 2013, respectively.

In 2012, the Company recorded an impairment of goodwill and intangible assets of $83.7 million related to the KGS reportable segment and an impairment of intangible assets of $12.9 million related to the PSS reportable segment. See Note 2.

In 2011 the Company had corporate merger and acquisition expenses of approximately $12.5 million, and in 2012 had a benefit from merger related items of $2.7 million due to a reduction in contingent consideration, settlement of a dispute on fees, and a change in estimate of indemnity obligations related to former directors and officers of Integral. A corporate benefit of $2.0 million for the year ended December 29, 2013, was due to the reduction in a $3.1 million liability as a result of the final settlement of the indemnity obligations related to former directors and officers of Integral on July 1, 2013, partially offset by other merger expenses and legal fees related to prior acquisitions.

Reportable segment assets are as follows (in millions):



	December 30, 2012		December 29, 2013
Assets:
Kratos Government Solutions	$	1,103.9	$	1,025.6
Public Safety & Security	106.8		122.6
Discontinued operations	7.5		—
Corporate activities	65.7		68.4
Total assets	$	1,283.9	$	1,216.6

The increases 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. Assets of foreign subsidiaries were $90.0 million and $95.9 million as of December 30, 2012 and December 29, 2013, respectively.

- 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.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Commitments and Contingencies

12 Months Ended

Dec. 29, 2013

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

In addition to commitments and obligations in the ordinary course of business, the Company is subject to various claims, pending and potential legal actions for damages, investigations relating to governmental laws and regulations and other matters arising out of the normal conduct of the Company's business. The Company assesses contingencies to determine the degree of probability and range of possible loss for potential accrual in its Consolidated Financial Statements. An estimated loss contingency is accrued in its Consolidated Financial Statements if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Because litigation is inherently unpredictable and unfavorable resolutions could occur, assessing litigation contingencies is highly subjective and requires judgments about future events. When evaluating contingencies, the Company may be unable to provide a meaningful estimate due to a number of factors, including but not limited to the procedural status of the matter in question, the presence of complex or novel legal theories, and the ongoing discovery and development of information important to the matters. In addition, damage amounts claimed in litigation against it may be unsupported, exaggerated or unrelated to possible outcomes, and as such are not meaningful indicators of its potential liability. The Company regularly reviews contingencies to determine the adequacy of its accruals and related disclosures. The amount of ultimate loss may differ from these estimates. It is possible that cash flows or results of operations could be materially affected in any particular period by the unfavorable resolution of one or more of these contingencies. Whether any losses finally determined in any claim, action, investigation or proceeding could reasonably have a material effect on the Company's business, financial condition, results of operations or cash flows will depend on a number of variables, including: the timing and amount of such losses; the structure and type of any remedies; the monetary significance of any such losses, damages or remedies may have on the Consolidated Financial Statements; and the unique facts and circumstances of the particular matter that may give rise to additional factors.

(a) Legal and Regulatory Matters.

Integral Indemnification Obligation. Integral, which was 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, 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 had indemnification obligations to these individuals, as well as to other former directors and officers of Integral who might 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, the Company assumed these indemnification obligations. The indemnification agreements each provide, subject to certain terms and conditions, that the Company 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 the Company thereafter advanced payment of indemnifiable costs pursuant to the indemnification agreements. On November 26, 2012, the SEC announced that it had finalized a settlement with Elaine M. Brown, resulting in a final judgment that resolved the SEC's matter against Brown. The SEC's case against Gary A. Prince proceeded to a bench trial in December 2012, which trial concluded in January 2013. On May 2, 2013, the court issued a memorandum opinion and entered an order granting judgment in favor of the SEC on one count of its complaint. The court found that in 1997, an accounting bar order had been issued against Mr. Prince because of his conduct at a different company, and that Mr. Prince violated the bar order between 1998 and 2006. The court issued an injunction permanently restraining and enjoining Mr. Prince from violating the accounting bar order. The court entered judgment in favor of Mr. Prince on all other counts of the SEC's complaint. No relief was sought or entered against Integral. The deadline for appeals expired on July 1, 2013. Neither party appealed, so the trial court's judgment is final. This matter is now concluded.

U.S. Government Cost Claims. The Company's contracts with the Department of Defense are subject to audit by the Defense Contract Audit Agency (“DCAA”). As a result of these audits, from time to time, the Company is advised of claims concerning potential disallowed, overstated or disputed costs. For example, during the course of its current audits, the DCAA is closely examining and questioning certain of its established and disclosed practices that it had previously audited and accepted. In addition, based on a DCAA audit, the U.S. Department of Justice is currently investigating whether one of our subsidiaries violated the federal False Claims Act by overstating its labor and material costs in a contract with the Department of Defense prior to the Company's acquisition of the subsidiary. Under the False Claims Act, the Department of Justice can seek civil penalties plus treble damages. The Company intends to defend itself in these matters and to work to resolve or settle any disputed contract costs. When appropriate, the Company records accruals to reflect its expected exposure to the matters raised by the U.S. Government, and it reviews such accruals on a quarterly basis for sufficiency based on the most recent information available. Based on its assessment, it has accrued an amount in its financial statements for contingent liabilities associated with these matters that it considers to be immaterial to its overall financial position. The matter that is currently being investigated was identified during the acquisition process and was taken into consideration in the purchase price allocation of this subsidiary. Contract disputes with the U.S. government, however, are inherently unpredictable, and unfavorable resolutions could occur. As a result, assessing contingencies is highly subjective and requires judgment about future events. The amount of ultimate loss may exceed the Company's current accruals, and it is possible that its cash flows or results of operations could be materially affected in any particular period by the unfavorable resolution of one or more of these contingencies.

Other Litigation Matters. The Company is subject to normal and routine litigation arising from the ordinary course and conduct of business, and, at times, as a result of acquisitions and dispositions. Such disputes include, for example, commercial, employment, intellectual property, environmental and securities matters. The aggregate amounts accrued related to these matters are not material to the total liabilities of the Company. We intend to defend ourselves in any such matters and do not currently believe that the outcome of any such matters will have a material adverse impact on our financial condition, results of operations or cash flows.


(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 Consolidated Balance Sheets, were as follows (in millions):



	Year Ended
	December 30, 2012			December 29, 2013
Balance, at beginning of the period	$	3.8		$	5.2
Costs accrued and revenues deferred	1.8			1.2
Warranty liabilities assumed from acquisitions	0.4			—
Adjustments to preexisting warranties	(0.7		)	(0.9		)
Settlements made (in cash or kind) and revenues recognized	(0.1		)	(0.1		)
Balance, at end of period	5.2			5.4
Less: Non-Current portion	0.3			0.3
Current warranty liability	$	4.9		$	5.1


(c)	Self-Insured Health and Workers' Compensation Plans

The Company has health plans which are self-insured and also has liabilities related to its self-insured worker's compensation plans for its discontinued wireless business. The liabilities related to the health plans are a component of total accrued expenses and the liabilities related to the workers' compensation plans are a component of current liabilities of discontinued operations in the Consolidated Balance Sheets. Management determines the adequacy of these accruals based on an evaluation of the Company's historical experience and trends related to both medical and workers' compensation claims and payments, information provided to the Company by the Company's insurance broker, industry experience and the average lag period in which claims are paid. If such information indicates that the Company's accruals require adjustment, the Company will, correspondingly, revise the assumptions utilized in the Company's methodologies and reduce or provide for additional accruals as deemed appropriate.

As of December 30, 2012, and December 29, 2013, the accrual for the Company's partial self-insurance programs approximated $0.1 million and $0.2 million for its health insurance and $0.2 million and $0.2 million for its workers' compensation insurance, respectively. The Company also carries stop-loss insurance that provides coverage limiting the Company's total exposure related to each medical and workers' compensation claim incurred, as defined in the applicable insurance policies. The medical annual claim limits are $50,000 - $85,000 and the workers' compensation claim limits are $250,000 - $350,000 depending upon the plan year. In 2011, 2012, and 2013, no claims exceeded the limits for workers' compensation. In 2011, 2012 and 2013, the Company had eight, no, and no claims, respectively, which exceeded the limits for medical insurance.

Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 29, 2013

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Data (Unaudited)

The following financial information reflects all normal and recurring adjustments that are, in the opinion of management, necessary for a fair statement of the results of the interim periods. Summarized quarterly data for the years ended December 30, 2012 and December 29, 2013, is as follows (in millions, except per share data):

Quarterly Results in 2012



	First Quarter			Second Quarter			Third Quarter			Fourth Quarter
Fiscal year 2012
Revenues	$	209.5		$	219.8		$	276.3		$	263.6
Gross profit	$	57.4		$	57.7		$	74.1		$	68.0
Operating income from continuing operations	$	9.1		$	7.4		$	14.1		$	(80.3	)
Provision (benefit) for income taxes	$	(4.1	)	$	6.6		$	1.3		$	(5.4	)
Net loss	$	(3.0	)	$	(17.2	)	$	(4.2	)	$	(90.0	)
Net loss per common share:
Basic and diluted	$	(0.09	)	$	(0.41	)	$	(0.07	)	$	(1.59	)

The quarterly increases in revenues and expenses in the third and fourth quarter are a result of the Company's acquisition of CEI. See Note 3.

In the fourth quarter the Company incurred an impairment of goodwill and intangible assets of $96.6 million. See Note 2.

During the first, second, and third quarters, the Company incurred $0.9 million, $1.5 million, and $0.3 million, respectively, of expenses related to the Company's acquisitions during those quarters and during the fourth quarter the Company had a benefit of $2.7 million related to acquisition items. Also included in each of the first, second, third and fourth quarter is amortization of purchased intangibles of $10.5 million, $8.9 million, $13.0 million and $11.5 million, respectively.

Quarterly Results in 2013



	First Quarter			Second Quarter			Third Quarter			Fourth Quarter
Fiscal year 2013
Revenues	$	253.3		$	235.2		$	226.4		$	235.7
Gross profit	$	65.8		$	60.4		$	52.3		$	61.5
Operating income (loss) from continuing operations	$	11.4		$	8.9		$	6.1		$	5.4
Provision (benefit) for income taxes	$	2.8		$	(0.1	)	$	0.2		$	(2.9	)
Net loss	$	(10.3	)	$	(9.6	)	$	(9.9	)	$	(7.4	)
Net loss per common share:
Basic and diluted	$	(0.18	)	$	(0.17	)	$	(0.17	)	$	(0.12	)

In the third quarter the Company had a benefit of $4.7 million primarily related to an adjustment to the liability for unused office space which was primarily due to a change in the estimated excess facility accrual of office space at our Colombia, Maryland administrative facilities partially offset by $2.0 million of expenses related to workforce reductions as a result of cost reduction initiatives we have implemented across the Company. Also included in each of the first, second, third and fourth quarter is amortization of purchased intangibles of $9.3 million, $9.0 million, $9.0 million and $8.9 million, respectively.

Condensed Consolidating Financial Statements

12 Months Ended

Dec. 29, 2013

Condensed Consolidating Financial Statements [Abstract]

Condensed Consolidating Financial Statements

The Company has $625.0 million in outstanding Notes. See Note 5. 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 Notes are not guaranteed by the Company's foreign subsidiaries (the “Non-Guarantor Subsidiaries”).

The following tables present condensed consolidating financial statements for the parent company, the Subsidiary Guarantors and the Non-Guarantor Subsidiaries, respectively, for 2011, 2012, and 2013. 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.

Subsequent to the issuance of the Company’s consolidated financial statements for the years ended December 25, 2011 and December 30, 2012, the Company reclassified Investment in affiliated companies to a separate line item in its Condensed Consolidating Statement of Cash Flows. These amounts were previously combined with financings from affiliated companies.

Condensed Consolidating Balance Sheet December 30, 2012 (in millions)

	Parent Company		Guarantors on a Combined Basis			Non-Guarantors on a Combined Basis		Eliminations			Consolidated
Assets
Current Assets:
Cash and cash equivalents	$	37.8	$	(4.0	)	$	15.2	$	—		$	49.0
Accounts receivable, net	—		253.5			18.4		—			271.9
Amounts due from affiliated companies	480.2		—			—		(480.2		)	—
Inventoried costs	—		75.4			18.9		—			94.3
Other current assets	9.1		28.0			3.1		—			40.2
Total current assets	527.1		352.9			55.6		(480.2		)	455.4
Property, plant and equipment, net	1.3		74.7			9.6		—			85.6
Goodwill	—		574.7			21.7		—			596.4
Intangible assets, net	—		103.4			2.7		—			106.1
Investment in subsidiaries	439.8		28.8			—		(468.6		)	—
Amounts due from affiliated companies	—		24.0			—		(24.0		)	—
Other assets	17.6		22.4			0.4		—			40.4
Total assets	$	985.8	$	1,180.9		$	90.0	$	(972.8	)	$	1,283.9
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	2.8	$	75.2		$	5.6	$	—		$	83.6
Accrued expenses	7.0		42.3			3.4		—			52.7
Accrued compensation	2.9		41.8			3.1		—			47.8
Billings in excess of costs and earnings on uncompleted contracts	—		40.5			3.2		—			43.7
Deferred tax liability	—		28.9			—		—			28.9
Amounts due to affiliated companies	—		455.1			25.1		(480.2		)	—
Other current liabilities	1.1		19.1			1.9		—			22.1
Total current liabilities	13.8		702.9			42.3		(480.2		)	278.8
Long-term debt, net of current portion	643.6		—			4.8		—			648.4
Deferred tax liability	—		—			—		—			—
Amounts due to affiliated companies	—		—			24.0		(24.0		)	—
Other long-term liabilities	4.3		26.2			2.1		—			32.6
Total liabilities	661.7		729.1			73.2		(504.2		)	959.8
Total stockholders' equity	324.1		451.8			16.8		(468.6		)	324.1
Total liabilities and stockholders' equity	$	985.8	$	1,180.9		$	90.0	$	(972.8	)	$	1,283.9

Condensed Consolidating Balance Sheet December 29, 2013 (in millions)

	Parent Company		Guarantors on a Combined Basis			Non-Guarantors on a Combined Basis			Eliminations			Consolidated
Assets
Current Assets:
Cash and cash equivalents	$	42.7	$	(3.0	)	$	16.0		$	—		$	55.7
Accounts receivable, net	—		238.6			27.2			—			265.8
Amounts due from affiliated companies	410.2		—			—			(410.2		)	—
Inventoried costs	—		59.1			15.5			—			74.6
Other current assets	10.7		19.4			4.1			—			34.2
Total current assets	463.6		314.1			62.8			(410.2		)	430.3
Amounts due from affiliated companies, long-term	—		24.0			—			(24.0		)	—
Property, plant and equipment, net	2.1		71.9			10.8			—			84.8
Goodwill	—		574.8			21.6			—			596.4
Intangible assets, net	—		68.5			1.4			—			69.9
Investment in subsidiaries	474.2		36.7			—			(510.9		)	—
Other assets	12.9		23.0			(0.7		)	—			35.2
Total assets	$	952.8	$	1,113.0		$	95.9		$	(945.1	)	$	1,216.6
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	2.8	$	54.1		$	5.0		$	—		$	61.9
Accrued expenses	6.6		40.9			3.9			—			51.4
Accrued compensation	4.0		36.9			4.0			—			44.9
Billings in excess of costs and earnings on uncompleted contracts	—		45.4			7.1			—			52.5
Deferred income tax liability	—		28.4			—			—			28.4
Amounts due to affiliated companies	—		390.2			20.0			(410.2		)	—
Other current liabilities	1.3		9.5			1.1			—			11.9
Total current liabilities	14.7		605.4			41.1			(410.2		)	251.0
Long-term debt, net of current portion	639.5		—			3.8			—			643.3
Amounts due to affiliated companies	—		—			24.0			(24.0		)	—
Other long-term liabilities	2.8		21.4			2.3			—			26.5
Total liabilities	657.0		626.8			71.2			(434.2		)	920.8
Total stockholders' equity	295.8		486.2			24.7			(510.9		)	295.8
Total liabilities and stockholders' equity	$	952.8	$	1,113.0		$	95.9		$	(945.1	)	$	1,216.6

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Year Ended December 25, 2011 (in millions)

	Parent Company			Guarantors on a Combined Basis			Non-Guarantors on a Combined Basis			Eliminations			Consolidated
Service revenues	$	—		$	349.3		$	1.7		$	—		$	351.0
Product sales	—			327.4			46.9			(11.4		)	362.9
Total revenues	—			676.7			48.6			(11.4		)	713.9
Cost of service revenues	—			259.2			1.5			—			260.7
Cost of product sales	—			242.5			30.9			(11.4		)	262.0
Total costs	—			501.7			32.4			(11.4		)	522.7
Gross profit	—			175.0			16.2			—			191.2
Selling, general and administrative expenses	15.9			122.3			14.9			—			153.1
Research and development expenses	—			7.9			0.7			—			8.6
Operating income (loss) from continuing operations	(15.9		)	44.8			0.6			—			29.5
Other income (expense):
Interest expense, net	(50.8		)	0.1			(0.4		)	—			(51.1		)
Other income, net	0.3			0.4			(0.7		)	—			—
Total other income and expense, net	(50.5		)	0.5			(1.1		)	—			(51.1		)
Income (loss) from continuing operations before income taxes	(66.4		)	45.3			(0.5		)	—			(21.6		)
Provision (benefit) for income taxes from continuing operations	—			3.0			(1.1		)	—			1.9
Income (loss) from continuing operations	(66.4		)	42.3			0.6			—			(23.5		)
Income (loss) from discontinued operations	—			(0.8		)	0.1			—			(0.7		)
Equity in net income (loss) of subsidiaries	42.2			0.5			—			(42.7		)	—
Net income (loss)	$	(24.2	)	$	42.0		$	0.7		$	(42.7	)	$	(24.2	)
Comprehensive income (loss)	$	(24.4	)	$	41.7		$	0.8		$	(42.5	)	$	(24.4	)

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Year Ended December 30, 2012 (in millions)

	Parent Company			Guarantors on a Combined Basis			Non-Guarantors on a Combined Basis			Eliminations			Consolidated
Service revenues	$	—		$	448.5		$	1.5		$	—		$	450.0
Product sales	—			470.0			64.5			(15.3		)	519.2
Total revenues	—			918.5			66.0			(15.3		)	969.2
Cost of service revenues	—			350.0			0.8			—			350.8
Cost of product sales	—			333.8			42.7			(15.3		)	361.2
Total costs	—			683.8			43.5			(15.3		)	712.0
Gross profit	—			234.7			22.5			—			257.2
Selling, general and administrative expenses	7.4			171.2			13.9			—			192.5
Impairment of goodwill and intangibles	—			96.6			—			—			96.6
Research and development expenses	—			16.9			0.9			—			17.8
Operating income (loss) from continuing operations	(7.4		)	(50.0		)	7.7			—			(49.7		)
Other income (expense):
Interest expense, net	(65.9		)	0.3			(0.5		)	—			(66.1		)
Other income, net	0.3			0.1			0.9			—			1.3
Total other income and expense, net	(65.6		)	0.4			0.4			—			(64.8		)
Income (loss) from continuing operations before income taxes	(73.0		)	(49.6		)	8.1			—			(114.5		)
Provision (benefit) for income taxes from continuing operations	20.8			(22.8		)	0.4			—			(1.6		)
Income (loss) from continuing operations	(93.8		)	(26.8		)	7.7			—			(112.9		)
Income (loss) from discontinued operations	(0.1		)	(2.2		)	0.8			—			(1.5		)
Equity in net income (loss) of subsidiaries	(20.5		)	8.3			—			12.2			—
Net income (loss)	$	(114.4	)	$	(20.7	)	$	8.5		$	12.2		$	(114.4	)
Comprehensive income (loss)	$	(115.0	)	$	20.9		$	9.4		$	11.5		$	(115.0	)

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Year Ended December 29, 2013 (in millions)

	Parent Company			Guarantors on a Combined Basis			Non-Guarantors on a Combined Basis			Eliminations			Consolidated
Service revenues	—			438.2			5.4			—			443.6
Product sales	—			448.6			75.3			(16.9		)	507.0
Total revenues	—			886.8			80.7			(16.9		)	950.6
Cost of service revenues	—			331.3			3.9			—			335.2
Cost of product sales	—			338.9			53.4			(16.9		)	375.4
Total costs	—			670.2			57.3			(16.9		)	710.6
Gross profit	—			216.6			23.4			—			240.0
Selling, general and administrative expenses	5.5			167.2			14.1			—			186.8
Impairment of goodwill and intangibles	—			—			—			—			—
Research and development expenses	—			20.2			1.2			—			21.4
Operating income (loss) from continuing operations	(5.5		)	29.2			8.1			—			31.8
Other income (expense):
Interest expense, net	(65.6		)	2.3			(0.4		)	—			(63.7		)
Other income, net	—			(0.3		)	0.3			—			—
Total other income and expense, net	(65.6		)	2.0			(0.1		)	—			(63.7		)
Income (loss) from continuing operations before income taxes	(71.1		)	31.2			8.0			—			(31.9		)
Provision (benefit) for income taxes from continuing operations	0.6			(0.7		)	0.1			—			—
Income (loss) from continuing operations	(71.7		)	31.9			7.9			—			(31.9		)
Income (loss) from discontinued operations	0.1			(5.4		)	—			—			(5.3		)
Equity in net income (loss) of subsidiaries	34.4			7.9			—			(42.3		)	—
Net income (loss)	$	(37.2	)	$	34.4		$	7.9		$	(42.3	)	$	(37.2	)
Comprehensive income (loss)	$	(37.2	)	$	34.4		$	7.9		$	(42.3	)	$	(37.2	)

Condensed Consolidating Statement of Cash Flows Year Ended December 25, 2011 (in millions)

	Parent Company			Guarantors on a Combined Basis			Non-Guarantors on a Combined Basis			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	(55.1	)	$	60.5		$	(0.2	)	$	—		$	5.2
Investing activities:
Cash paid for acquisitions, net of cash acquired	(421.0		)	18.0			11.9			—			(391.1		)
Decrease in restricted cash	1.4			1.6			—			—			3.0
Investment in affiliated companies	—			(68.6		)	—			68.6			—
Capital expenditures	(0.2		)	(6.3		)	(1.0		)	—			(7.5		)
Net cash provided by (used in) investing activities from continuing operations	(419.8		)	(55.3		)	10.9			68.6			(395.6		)
Financing activities:
Proceeds from the issuance of common stock	61.1			—			—			—			61.1
Proceeds from the issuance of long-term debt	425.7			—			—			—			425.7
Debt issuance costs paid	(22.1		)	—			—			—			(22.1		)
Purchase of treasury stock	(10.9		)	—			—			—			(10.9		)
Repayment of debt	—			(2.6		)	(0.8		)	—			(3.4		)
Financing from affiliated companies	63.6			—			5.0			(68.6		)	—
Other, net	2.0			—			—			—			2.0
Net cash provided by (used in) financing activities from continuing operations	519.4			(2.6		)	4.2			(68.6		)	452.4
Net cash flows of continuing operations	44.5			2.6			14.9			—			62.0
Net operating cash flows from discontinued operations	—			(2.2		)	(0.5		)	—			(2.7		)
Effect of exchange rate changes on cash and cash equivalents	—			(0.3		)	(0.2		)				(0.5		)
Net increase in cash and cash equivalents	$	44.5		$	0.1		$	14.2		$	—		$	58.8

Condensed Consolidating Statement of Cash Flows Year Ended December 30, 2012 (in millions)

	Parent Company			Guarantors on a Combined Basis			Non-Guarantors on a Combined Basis			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	(98.2	)	$	144.5		$	6.0		$	—		$	52.3
Investing activities:				—			—
Cash paid for acquisitions, net of cash acquired	2.3			(151.7		)	—			—			(149.4		)
Decrease in restricted cash	—			0.6			—			—			0.6
Investment in affiliated companies	(10.8		)	—			(2.0		)	12.8			—
Capital expenditures	(0.5		)	(14.2		)	(1.9		)	—			(16.6		)
Other, net	—			0.3			—			—			0.3
Net cash provided by (used in) investing activities from continuing operations	(9.0		)	(165.0		)	(3.9		)	12.8			(165.1		)
Financing activities:
Proceeds from the issuance of common stock	97.0			—			—			—			97.0
Debt issuance costs paid	(1.2		)	—			—			—			(1.2		)
Repayment of debt	—			(0.5		)	(1.0		)	—			(1.5		)
Financings from affiliated companies	—			12.8			—			(12.8		)	—
Other, net	(3.4		)	—			—			—			(3.4		)
Net cash provided by (used in) financing activities from continuing operations	92.4			12.3			(1.0		)	(12.8		)	90.9
Net cash flows of continuing operations	(14.8		)	(8.2		)	1.1			—			(21.9		)
Net operating cash flows from discontinued operations	—			1.3			—			—			1.3
Effect of exchange rate changes on cash and cash equivalents	—			—			—						—
Net increase (decrease) in cash and cash equivalents	$	(14.8	)	$	(6.9	)	$	1.1		$	—		$	(20.6	)

Condensed Consolidating Statement of Cash Flows Year Ended December 29, 2013 (in millions)

	Parent Company			Guarantors on a Combined Basis			Non-Guarantors on a Combined Basis			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	(65.9	)	$	87.5		$	1.0		$	—		$	22.6
Investing activities:				—			—
Cash paid for acquisitions, net of cash acquired	—			2.2			—			—			2.2
Decrease in restricted cash	—			0.4			—			—			0.4
Proceeds from the sale of discontinued operations	—			1.3			—			—			1.3
Investment in affiliated companies	—			(74.8		)	—			74.8			—
Capital Expenditures	(1.4		)	(12.3		)	(2.9		)	—			(16.6		)
Net cash provided by (used in) investing activities from continuing operations	(1.4		)	(83.2		)	(2.9		)	74.8			(12.7		)
Financing activities:
Cash paid for contingent acquisition consideration	—			(2.1		)	—			—			(2.1		)
Repayment of debt	—			—			(1.0		)	—			(1.0		)
Purchase of ESPP shares	1.1			—			—			—			1.1
Financings from affiliated companies	71.1			—			3.7			(74.8		)	—
Other, net	—			—			—			—			—
Net cash provided by (used in) financing activities from continuing operations	72.2			(2.1		)	2.7			(74.8		)	(2.0		)
Net cash flows of continuing operations	4.9			2.2			0.8			—			7.9
Net operating cash flows from discontinued operations	—			(1.3		)	—			—			(1.3		)
Effect of exchange rate changes on cash and cash equivalents	—			—			0.1			—			0.1
Net increase (decrease) in cash and cash equivalents	$	4.9		$	0.9		$	0.9		$	—		$	6.7

Organization and Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 29, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Principles of Consolidation and Basis of Presentation

The Consolidated Financial Statements include the accounts of Kratos and its wholly-owned subsidiaries, for which all intercompany transactions have been eliminated in consolidation.

Discontinued Operations

Fiscal Year

December 30, 2012.

Use of Estimates

Revenue Recognition


(1)	Whether the Company acts as a principal in the transaction;


(2)	Whether the Company takes title to the products;


(3)	Whether the Company assumes risks and rewards of ownership, such as risk of loss for collection, delivery or returns;


(4)	Whether the Company serves as an agent or broker, with compensation on a commission or fee basis; and,


(5)	Whether the Company assumes the credit risk for the amount billed to the customer subsequent to delivery.

Shipping and Handling Costs

Inventoried Costs

Inventoried costs

Research and Development

Costs incurred in research and development activities are expensed as incurred in accordance with FASB ASC Topic 730, Research and Development.

Income Taxes

Income Taxes - Uncertain Tax Positions

Stock-based Compensation

Stock-Based Compensation

Allowance for Doubtful Accounts

Cash and Cash Equivalents

The Company's cash equivalents consist of its highly liquid investments with an original maturity of three months or less when purchased by the Company.

Property and Equipment, Net

Assets are depreciated predominately using the straight-line method, with the following lives:



		Years
Buildings and improvements		15 - 39
Machinery and equipment		3 - 10
Computer equipment and software		1 - 10
Vehicles, furniture, and office equipment		5
Leasehold improvements		Shorter of useful life or length of lease

Leases

Acquisitions

Goodwill and Other Intangible Assets, Net

Impairment of Long-Lived Assets and Long-Lived Assets to Be Disposed Of

Fair Value of Financial Instruments

Concentrations and Uncertainties

Debt Issuance Costs

Foreign Currency Translation

Foreign Currency

Product Warranties

Recent Accounting Pronouncements

Goodwill

The Company performs its annual impairment test for goodwill in accordance with Topic 350 as of the last day of each fiscal year or when evidence of potential impairment exists.

Organization and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 29, 2013

Accounting Policies [Abstract]

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs

The following table shows the amounts recognized in the Consolidated Financial Statements for 2011, 2012 and 2013 for stock-based compensation expense related to stock options, stock awards and to stock offered under the Company's employee stock purchase plan (in millions).



	2011			2012			2013
Selling, general and administrative expenses	$	3.3		$	6.6		$	7.4
Total cost of employee stock-based compensation included in operating income (loss) from continuing operations, before income tax	3.3			6.6			7.4
Total charged against operations	$	3.3		$	6.6		$	7.4
Impact on net income (loss) per common share:
Basic and diluted	$	(0.12	)	$	(0.14	)	$	(0.13	)

Schedule of Valuation and Qualifying Accounts Disclosure



Allowance for Doubtful Accounts	Balance at Beginning of Year		Provisions		Write-offs/Recoveries			Balance at End of Year
Year ended December 25, 2011	$	0.7	$	1.8	$	(0.5	)	$	2.0
Year ended December 30, 2012	$	2.0	$	0.4	$	(1.0	)	$	1.4
Year ended December 29, 2013	$	1.4	$	1.0	$	(0.2	)	$	2.2

Property, Plant and Equipment

Assets are depreciated predominately using the straight-line method, with the following lives:



		Years
Buildings and improvements		15 - 39
Machinery and equipment		3 - 10
Computer equipment and software		1 - 10
Vehicles, furniture, and office equipment		5
Leasehold improvements		Shorter of useful life or length of lease

Property and equipment, net



	December 30, 2012			December 29, 2013
Land and buildings	$	20.8		$	21.0
Computer equipment and software	17.2			20.0
Machinery and equipment	49.9			59.0
Furniture and office equipment	12.2			15.4
Facility under capital lease	1.0			1.0
Leasehold improvements	13.9			13.7
Construction in progress	5.8			4.8
Property and equipment	120.8			134.9
Accumulated depreciation and amortization	(35.2		)	(50.1		)
Total property and equipment, net	$	85.6		$	84.8

Schedule of Interest Expense, Net

Interest expense, net in the Consolidated Statements of Operations and Comprehensive Loss is summarized in the following table (in millions):



	2011			2012			2013
Interest expense incurred primarily on the Company's Senior Secured Notes	$	(51.2	)	$	(66.4	)	$	(63.9	)
Miscellaneous interest income	0.1			0.3			0.2
Interest expense, net	$	(51.1	)	$	(66.1	)	$	(63.7	)

Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Dec. 29, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of goodwill

The changes in the carrying amount of goodwill for the years ended December 30, 2012 and December 29, 2013 are as follows (in millions):



	Public Safety & Security		Kratos Government Solutions			Total
Balance as of December 25, 2011	$	33.0	$	538.6		$	571.6
Additions due to business combinations	2.6		104.3			106.9
Impairments	—		(82.0		)	(82.0		)
Balance as of December 30, 2012	35.6		560.9			596.5
Retrospective adjustments	—		(0.1		)	(0.1		)
Balance as of December 30, 2012 after retrospective adjustments	35.6		560.8			596.4
2013 transactions	—		—			—
Balance as of December 29, 2013	$	35.6	$	560.8		$	596.4

Schedule of acquired finite-lived intangible assets

The following table sets forth information for acquired finite-lived and indefinite-lived intangible assets (in millions):



	As of December 30, 2012							As of December 29, 2013
	Gross Value		Accumulated Amortization			Net Value		Gross Value		Accumulated Amortization			Net Value
Acquired finite-lived intangible assets:
Customer relationships	$	97.7	$	(36.2	)	$	61.5	$	97.7	$	(53.7	)	$	44.0
Contracts and backlog	80.0		(64.3		)	15.7		80.0		(78.7		)	1.3
Developed technology and technical know-how	22.1		(6.4		)	15.7		22.1		(8.6		)	13.5
Trade names	6.1		(1.2		)	4.9		6.1		(3.1		)	3.0
Favorable operating lease	1.8		(0.4		)	1.4		1.8		(0.6		)	1.2
Total finite-lived intangible assets	207.7		(108.5		)	99.2		207.7		(144.7		)	63.0
Acquired indefinite-lived intangible assets
Trade names	6.9		—			6.9		6.9		—			6.9
Total indefinite-lived intangible assets	6.9		—			6.9		6.9		—			6.9
Total intangible assets	$	214.6	$	(108.5	)	$	106.1	$	214.6	$	(144.7	)	$	69.9

Schedule of future amortization expense of finite-lived intangible assets

The estimated future amortization expense of acquired intangible assets with finite lives as of December 29, 2013 is as follows (in millions):



Fiscal Year	Amount
2014	$	21.7
2015	14.4
2016	9.7
2017	8.2
2018	3.9
Thereafter	5.1
Total	$	63.0

Acquisitions (Tables)

12 Months Ended

Dec. 29, 2013

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):



	Year Ended December 25, 2011			Year Ended December 30, 2012
Pro forma revenues	$	1,046.9		$	1,019.5
Pro forma net loss before tax	(63.6		)	(132.0		)
Pro forma net loss	(67.1		)	(130.4		)
Net loss attributable to the registrant	(23.5		)	(112.9		)
Basic and diluted pro forma loss per share	$	(1.15	)	$	(2.31	)

Schedule of nonrecurring pro forma adjustments

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



	Year Ended December 25, 2011			Year Ended December 30, 2012
Intangible amortization	$	32.8		$	16.2
Net change in stock compensation expense	(1.4		)	2.2
Net change in interest expense	(9.9		)	—
Net change in income tax expense	(1.6		)	—
Increase in weighted average common shares outstanding for shares issued and not already included in the weighted average common shares outstanding	30.7			9.6

Schedule of contingent acquisition consideration

Contingent acquisition consideration as of December 30, 2012 and December 29, 2013 is summarized in the following table (in millions):



	SecureInfo			DEI			SCT			Total
Balance as of December 25, 2011	$	1.5		$	5.0		$	1.1		$	7.6
Cash payments	(1.5		)	(2.5		)	—			(4.0		)
Post acquisition adjustments reflected in operating results	—			(0.4		)	(1.1		)	(1.5		)
Balance as of December 30, 2012	—			2.1			—			2.1
Cash payments	—			(2.1		)	—			(2.1		)
Balance as of December 29, 2013	$	—		$	—		$	—		$	—

Composite Engineering, 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 as of the acquisition date (in millions):



Cash	$	8.9
Accounts receivable	9.3
Inventoried costs	12.3
Other current assets	8.9
Property and equipment	8.1
Intangible assets	38.0
Goodwill	104.2
Total assets	189.7
Current liabilities	(25.7		)
Net assets acquired	$	164.0

Critical Infrastructure Business

Business Acquisition [Line Items]

Schedule of purchase price allocation

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



Accounts receivable	$	23.4
Other assets	0.5
Intangible assets	2.0
Goodwill	2.6
Total assets	28.5
Current liabilities	(9.7		)
Net assets acquired	$	18.8

SecureInfo Corporation

Business Acquisition [Line Items]

Schedule of purchase price allocation

The following table summarizes the 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 as of July 27, 2011 (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

Balance Sheet Details (Tables)

12 Months Ended

Dec. 29, 2013

Balance Sheet Details Disclosure [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable

Accounts receivable, net

Receivables including amounts due under long-term contracts are summarized as follows:



	December 30, 2012			December 29, 2013
Billed, current	$	137.9		$	150.2
Unbilled, current	135.4			117.9
Total current accounts receivable	273.3			268.1
Allowance for doubtful accounts	(1.4		)	(2.3		)
Total current accounts receivable, net	271.9			265.8
Unbilled, long-term (included in other assets)	0.3			0.1
Total accounts receivable, net	$	272.2		$	265.9

U.S. Government contract receivables (included in accounts receivable, net)



	December 30, 2012		December 29, 2013
Billed	$	24.6	$	19.8
Unbilled	39.4		31.6
Total U.S. Government contract receivables	$	64.0	$	51.4

Schedule of Inventory, Current

Inventoried costs, net of progress payments



	December 30, 2012			December 29, 2013
Raw materials	$	48.4		$	44.5
Work in process	36.5			24.3
Finished goods	7.3			4.6
Supplies and other	2.2			1.9
Subtotal inventoried costs	94.4			75.3
Less customer advances and progress payments	(0.1		)	(0.7		)
Total inventoried costs	$	94.3		$	74.6

Property, Plant and Equipment

Assets are depreciated predominately using the straight-line method, with the following lives:



		Years
Buildings and improvements		15 - 39
Machinery and equipment		3 - 10
Computer equipment and software		1 - 10
Vehicles, furniture, and office equipment		5
Leasehold improvements		Shorter of useful life or length of lease

Property and equipment, net



	December 30, 2012			December 29, 2013
Land and buildings	$	20.8		$	21.0
Computer equipment and software	17.2			20.0
Machinery and equipment	49.9			59.0
Furniture and office equipment	12.2			15.4
Facility under capital lease	1.0			1.0
Leasehold improvements	13.9			13.7
Construction in progress	5.8			4.8
Property and equipment	120.8			134.9
Accumulated depreciation and amortization	(35.2		)	(50.1		)
Total property and equipment, net	$	85.6		$	84.8

Debt (Tables)

12 Months Ended

Dec. 29, 2013

Debt Disclosure [Abstract]

Fair value of long-term debt



	As of December 30, 2012						As of December 29, 2013
$ in millions	Principal		Carrying Amount		Fair Value		Principal		Carrying Amount		Fair Value
Long-term debt	$	630.7	$	649.4	$	690.5	$	629.8	$	644.3	$	679.7

Lease Commitments (Tables)

12 Months Ended

Dec. 29, 2013

Leases [Abstract]

Schedule of Future Minimum Lease Payments, Capital and Operating Leases



Year	Capital Leases		Net Operating Leases
2014	$	0.4	$	15.9
2015	0.1		13.0
2016	—		10.9
2017	—		9.6
2018	—		8.8
Thereafter	—		12.7
Total future minimum lease payments	0.5		$	70.9
Less amount representing interest	0.1
Present value of capital lease obligations	0.4
Less current portion	0.3
Long-term capital lease obligations	$	0.1

Schedule of Capital Leased Assets

The following is an analysis of the leased property under capital leases by major class (in millions):



	December 30, 2012		December 29, 2013
Classes of Property
Facilities	$	1.0	$	1.0
Vehicles	0.5		0.5
Office equipment	0.5		0.4
Total	2		1.9
Less: Accumulated amortization	1.5		1.7
	$	0.5	$	0.2

Schedule of Unused Facilities Accrual Roll-forward

The accrual for excess facilities is as follows (in millions):



	Excess Facilities
Balance as of December 25, 2011	$	18.5
Fair value of liability assumed in acquisition	1.8
Cash payments	(1.6		)
Balance as of December 30, 2012	18.7
Adjustments of excess facility accruals	(4.7		)
Cash payments	(1.6		)
Balance as of December 29, 2013	$	12.4

Net Loss Per Common Share (Tables)

12 Months Ended

Dec. 29, 2013

Earnings Per Share [Abstract]

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 (in millions):



	December 25, 2011	December 30, 2012	December 29, 2013
Shares from stock options and awards	2.1	3.6	2.6

Income Taxes (Tables)

12 Months Ended

Dec. 29, 2013

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

The components of income (loss) from continuing operations before income taxes and equity earnings are listed below (in millions):



	2011			2012			2013
Domestic	$	(20.7	)	$	(120.3	)	$	(39.4	)
Foreign	(0.9		)	5.8			7.5
Total	$	(21.6	)	$	(114.5	)	$	(31.9	)

Schedule of Components of Income Tax Expense (Benefit)

The provision (benefit) for income taxes from continuing operations for the years ended December 25, 2011, December 30, 2012, and December 29, 2013 are comprised of the following (in millions):



	2011			2012			2013
Federal income taxes:
Current	$	(1.5	)	$	—		$	(1.7	)
Deferred	0.6			(3.5		)	0.3
Total Federal	(0.9		)	(3.5		)	(1.4		)
State and local income taxes
Current	3.1			0.8			2.0
Deferred	0.8			0.4			(0.7		)
Total State and local	3.9			1.2			1.3
Foreign income taxes:
Current	0.4			0.1			0.1
Deferred	(1.5		)	0.6			—
Total Foreign	(1.1		)	0.7			0.1
Total	$	1.9		$	(1.6	)	$	—

Schedule of Income Tax Reconciliation



	2011			2012			2013
Income tax expense (benefit) at federal statutory rate	$	(7.6	)	$	(40.1	)	$	(11.1	)
State taxes, net of federal tax benefit and valuation allowance	3.1			0.7			1.8
Difference in tax rates between U.S. and foreign	(0.1		)	(1.5		)	(2.6		)
Release of foreign valuation allowance	(0.7		)	—			—
Increase (decrease) in federal valuation allowance	4.7			14.2			13.0
Nondeductible expense	0.4			0.3			0.7
Increase (decrease) in reserve for uncertain tax positions	(1.7		)	0.1			(1.4		)
Transaction costs	2.3			0.1			—
Changes to indefinite life items and separate state deferred taxes	1.5			(3.0		)	(0.4		)
Impact of purchase accounting	—			—			—
Goodwill impairment	—			27.6			—
Total	$	1.9		$	(1.6	)	$	—

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to the deferred tax assets and deferred tax liabilities as of December 30, 2012 and December 29, 2013 are as follows (in millions):



	2012			2013
Deferred tax assets:
Allowance for doubtful accounts	$	0.4		$	0.7
Sundry accruals	3.3			2.8
Vacation accrual	5.1			5.2
Stock-based compensation	4.6			6.1
Payroll related accruals	2.7			3.3
Lease accruals	9.7			9.1
Investments	1.9			1.9
Net operating loss carryforwards	124.8			118.2
Tax credit carryforwards	3.7			5.1
Deferred revenue	2.1			2.4
Reserves and other	10.2			10.2
	168.5			165
Valuation allowance	(110.4		)	(123.1		)
Total deferred tax assets, net of allowance	58.1			41.9
Deferred tax liabilities:
Unearned revenue	(42.0		)	(35.8		)
Other intangibles	(15.7		)	(4.7		)
Property and equipment, principally due to differences in depreciation	(7.9		)	(7.7		)
Other	—			(0.9		)
Total deferred tax liabilities	(65.6		)	(49.1		)
Net deferred tax asset (liability)	$	(7.5	)	$	(7.2	)

Schedule of Unrecognized Tax Benefits Roll Forward

The following table summarizes the activity related to the Company's unrecognized tax benefits (in millions):



Balance as of December 26, 2010	$	12.4
Increases related to prior periods (acquired entities)	0.5
Increases related to current year tax positions	0.2
Expiration of applicable statutes of limitations	(0.6		)
Settlements with taxing authorities	(2.4		)
Balance as of December 25, 2011	10.1
Increases related to prior periods (acquired entities)	3.7
Increases related to current year tax positions	—
Expiration of applicable statutes of limitations	(0.1		)
Settlements with taxing authorities	(0.3		)
Balance as of December 30, 2012	13.4
Increases related to prior periods (acquired entities)	3.3
Increases related to current year tax positions	1.7
Expiration of applicable statutes of limitations	(2.6		)
Settlements with taxing authorities	—
Balance as of December 29, 2013	$	15.8

Discontinued Operations (Tables)

12 Months Ended

Dec. 29, 2013

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures



	December 30, 2012		December 29, 2013
Accounts receivable, net	$	3.4	$	—
Inventoried costs	3.0		—
Other current assets	0.2		—
Current assets of discontinued operations	$	6.6	$	—
Property and equipment, net	$	0.4	$	—
Other assets	0.4		—
Long-term assets of discontinued operations	$	0.8	$	—
Accrued expenses and accounts payable	$	4.4	$	1.1
Billings in excess of costs and earnings on uncompleted contracts	0.1		—
Other current liabilities	0.4		1.4
Current liabilities of discontinued operations	$	4.9	$	2.5
Other long-term liabilities	$	0.3	$	0.2
Long-term liabilities of discontinued operations	$	0.3	$	0.2

The following table presents the results of discontinued operations including gain and loss on disposals which is included in loss before taxes (in millions):



	Year ended December 25, 2011			Year ended December 30, 2012			Year ended December 29, 2013
Revenue	$	9.2		$	18.5		$	3.7
Loss before taxes	(1.3		)	(1.8		)	(5.3		)
Benefit for income taxes	(0.6		)	(0.3		)	—
Net loss	$	(0.7	)	$	(1.5	)	$	(5.3	)

- 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

Stockholders' Equity (Tables)

12 Months Ended

Dec. 29, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

Awards with graded vesting are recognized using the straight-line method with the following assumptions:



	2011	2012	2013
Stock Options
Expected life (1)	2.2	10.0	6.25 - 10.0
Risk-free interest rate(2)	0.1% - 3.4%	1.6% - 2.3%	1.1% - 2.9%
Volatility(3)	29.3% - 65.3%	59.0% - 59.7%	56.8% - 61.2%
Forfeiture rate(4)	16.3%	16.3%	10%
Dividend yield(5)	—%	—%	—%

(1) In 2011 and 2012, no unvested options were granted and the expected life was equal to the life of the option.

(2) The risk-free interest rate is based on U.S. Treasury yields in effect at the time of grant with a term equal to the expected term of the options.

(3) In 2011, 2012, and 2013, the Company estimated implied volatility based upon trailing volatility.

(4) Forfeitures are estimated at the time of grant based upon historical information. Forfeitures will be revised, if necessary, in subsequent periods if actual forfeitures differ from estimates.

(5) The Company has no history or expectation of paying dividends on its common stock.

Schedule of Stock Options Roll Forward

A summary of the status of the Company's stock option plan as of December 29, 2013 and changes in options outstanding under the plan for the year ended December 29, 2013 is as follows:



	Number of Shares Under Option		Weighted-Average Exercise Price per Share		Weighted- Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
	(000's)					(000's)
Options outstanding at December 30, 2012	1,133		$	27.66	2.8	$	80.0
Granted	1,012		$	5.03	—	—
Exercised	(7	)	$	5.05	—	—
Forfeited or expired	(417	)	$	32.95	—	—
Options outstanding at December 29, 2013	1,721		$	13.16	5.8	$	2,179.0
Options exercisable at December 29, 2013	821		$	22.09	2.4	$	249.0

Share-based Compensation Arrangement By Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value and Exercises in Period, Total Intrinsic Value

During the years ended December 25, 2011, December 30, 2012, and December 29, 2013 the following values relate to the grants and exercises under the Company's option plans:



	2011		2012		2013
Weighted average grant date fair value of options granted	$	2.38	$	3.56	$	2.86
Total intrinsic value of options exercised (in thousands)	$	1,832	$	—	$	—

Schedule of Nonvested Restricted Stock Units Activity

The following table summarizes the Company's Restricted Stock Unit activity:



	Restricted Stock Units (000's)		Weighted-Average Grant Date Fair Value
Nonvested balance at December 30, 2012	3,670		$	7.53
Grants	53		$	12.69
Vested	(132	)	$	12.89
Forfeitures	(243	)	$	9.34
Vested but not released	(3	)	$	12.39
Nonvested balance at December 29, 2013	3,345		$	7.26

Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions

The assumptions and resulting fair values of options granted for 2012 and 2013 were as follows:



	Offering Periods January 1 to December 31, 2011	Offering Periods January 1 to December 31, 2012	Offering Periods January 1 to December 31 2013
Expected term (in years)(1)	0.5	0.5	0.5
Risk-free interest rate(2)	0.10% - 0.19%	0.06% - 0.16%	0.10% - 0.11%
Expected volatility(3)	28.5% - 43.6%	49.70% - 65.73%	36.95% - 43.70%
Expected dividend yield(4)	0%	0%	0%
Weighted average grant-date fair value per share	$3.05	$1.93	$1.50


(1)	The expected term is equivalent to the offering period.


(2)	The risk-free interest rate is based on U.S. Treasury yields in effect at the time of grant with a term equal to the expected term.

(3) The Company estimated implied volatility based upon trailing volatility.

(4) The Company has no history or expectation of paying dividends on its common stock.

Segment Information (Tables)

12 Months Ended

Dec. 29, 2013

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment



	2011			2012			2013
Revenues:
Kratos Government Solutions
Service revenues	$	238.8		$	264.0		$	233.9
Product sales	362.9			519.2			507.0
Total Kratos Government Solutions	601.7			783.2			740.9
Public Safety & Security
Service revenues	112.2			186.0			209.7
Product sales	—			—			—
Total Public Safety & Security	112.2			186.0			209.7
Total revenues	$	713.9		$	969.2		$	950.6
Depreciation and amortization:
Kratos Government Solutions	$	45.7		$	54.5		$	49.9
Public Safety & Security	2.3			3.5			3.5
Total depreciation and amortization	$	48.0		$	58.0		$	53.4
Operating income (loss) from continuing operations:
Kratos Government Solutions	$	35.4		$	(41.5	)	$	26.4
Public Safety & Security	9.9			(2.5		)	8.3
Corporate activities	(15.8		)	(5.7		)	(2.9		)
Total operating income (loss) from continuing operations	$	29.5		$	(49.7	)	$	31.8

Reportable segment assets are as follows (in millions):



	December 30, 2012		December 29, 2013
Assets:
Kratos Government Solutions	$	1,103.9	$	1,025.6
Public Safety & Security	106.8		122.6
Discontinued operations	7.5		—
Corporate activities	65.7		68.4
Total assets	$	1,283.9	$	1,216.6

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 29, 2013

Commitments and Contingencies Disclosure [Abstract]

Schedule of Product Warranty Liabilities



	Year Ended
	December 30, 2012			December 29, 2013
Balance, at beginning of the period	$	3.8		$	5.2
Costs accrued and revenues deferred	1.8			1.2
Warranty liabilities assumed from acquisitions	0.4			—
Adjustments to preexisting warranties	(0.7		)	(0.9		)
Settlements made (in cash or kind) and revenues recognized	(0.1		)	(0.1		)
Balance, at end of period	5.2			5.4
Less: Non-Current portion	0.3			0.3
Current warranty liability	$	4.9		$	5.1

Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 29, 2013

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Financial Information

Quarterly Results in 2013



	First Quarter			Second Quarter			Third Quarter			Fourth Quarter
Fiscal year 2013
Revenues	$	253.3		$	235.2		$	226.4		$	235.7
Gross profit	$	65.8		$	60.4		$	52.3		$	61.5
Operating income (loss) from continuing operations	$	11.4		$	8.9		$	6.1		$	5.4
Provision (benefit) for income taxes	$	2.8		$	(0.1	)	$	0.2		$	(2.9	)
Net loss	$	(10.3	)	$	(9.6	)	$	(9.9	)	$	(7.4	)
Net loss per common share:
Basic and diluted	$	(0.18	)	$	(0.17	)	$	(0.17	)	$	(0.12	)

Summarized quarterly data for the years ended December 30, 2012 and December 29, 2013, is as follows (in millions, except per share data):

Quarterly Results in 2012



	First Quarter			Second Quarter			Third Quarter			Fourth Quarter
Fiscal year 2012
Revenues	$	209.5		$	219.8		$	276.3		$	263.6
Gross profit	$	57.4		$	57.7		$	74.1		$	68.0
Operating income from continuing operations	$	9.1		$	7.4		$	14.1		$	(80.3	)
Provision (benefit) for income taxes	$	(4.1	)	$	6.6		$	1.3		$	(5.4	)
Net loss	$	(3.0	)	$	(17.2	)	$	(4.2	)	$	(90.0	)
Net loss per common share:
Basic and diluted	$	(0.09	)	$	(0.41	)	$	(0.07	)	$	(1.59	)

Condensed Consolidating Financial Statements (Tables)

12 Months Ended

Dec. 29, 2013

Condensed Consolidating Financial Statements [Abstract]

Schedule of Condensed Balance Sheet

Condensed Consolidating Balance Sheet December 30, 2012 (in millions)

	Parent Company		Guarantors on a Combined Basis			Non-Guarantors on a Combined Basis		Eliminations			Consolidated
Assets
Current Assets:
Cash and cash equivalents	$	37.8	$	(4.0	)	$	15.2	$	—		$	49.0
Accounts receivable, net	—		253.5			18.4		—			271.9
Amounts due from affiliated companies	480.2		—			—		(480.2		)	—
Inventoried costs	—		75.4			18.9		—			94.3
Other current assets	9.1		28.0			3.1		—			40.2
Total current assets	527.1		352.9			55.6		(480.2		)	455.4
Property, plant and equipment, net	1.3		74.7			9.6		—			85.6
Goodwill	—		574.7			21.7		—			596.4
Intangible assets, net	—		103.4			2.7		—			106.1
Investment in subsidiaries	439.8		28.8			—		(468.6		)	—
Amounts due from affiliated companies	—		24.0			—		(24.0		)	—
Other assets	17.6		22.4			0.4		—			40.4
Total assets	$	985.8	$	1,180.9		$	90.0	$	(972.8	)	$	1,283.9
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	2.8	$	75.2		$	5.6	$	—		$	83.6
Accrued expenses	7.0		42.3			3.4		—			52.7
Accrued compensation	2.9		41.8			3.1		—			47.8
Billings in excess of costs and earnings on uncompleted contracts	—		40.5			3.2		—			43.7
Deferred tax liability	—		28.9			—		—			28.9
Amounts due to affiliated companies	—		455.1			25.1		(480.2		)	—
Other current liabilities	1.1		19.1			1.9		—			22.1
Total current liabilities	13.8		702.9			42.3		(480.2		)	278.8
Long-term debt, net of current portion	643.6		—			4.8		—			648.4
Deferred tax liability	—		—			—		—			—
Amounts due to affiliated companies	—		—			24.0		(24.0		)	—
Other long-term liabilities	4.3		26.2			2.1		—			32.6
Total liabilities	661.7		729.1			73.2		(504.2		)	959.8
Total stockholders' equity	324.1		451.8			16.8		(468.6		)	324.1
Total liabilities and stockholders' equity	$	985.8	$	1,180.9		$	90.0	$	(972.8	)	$	1,283.9

Condensed Consolidating Balance Sheet December 29, 2013 (in millions)

	Parent Company		Guarantors on a Combined Basis			Non-Guarantors on a Combined Basis			Eliminations			Consolidated
Assets
Current Assets:
Cash and cash equivalents	$	42.7	$	(3.0	)	$	16.0		$	—		$	55.7
Accounts receivable, net	—		238.6			27.2			—			265.8
Amounts due from affiliated companies	410.2		—			—			(410.2		)	—
Inventoried costs	—		59.1			15.5			—			74.6
Other current assets	10.7		19.4			4.1			—			34.2
Total current assets	463.6		314.1			62.8			(410.2		)	430.3
Amounts due from affiliated companies, long-term	—		24.0			—			(24.0		)	—
Property, plant and equipment, net	2.1		71.9			10.8			—			84.8
Goodwill	—		574.8			21.6			—			596.4
Intangible assets, net	—		68.5			1.4			—			69.9
Investment in subsidiaries	474.2		36.7			—			(510.9		)	—
Other assets	12.9		23.0			(0.7		)	—			35.2
Total assets	$	952.8	$	1,113.0		$	95.9		$	(945.1	)	$	1,216.6
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	2.8	$	54.1		$	5.0		$	—		$	61.9
Accrued expenses	6.6		40.9			3.9			—			51.4
Accrued compensation	4.0		36.9			4.0			—			44.9
Billings in excess of costs and earnings on uncompleted contracts	—		45.4			7.1			—			52.5
Deferred income tax liability	—		28.4			—			—			28.4
Amounts due to affiliated companies	—		390.2			20.0			(410.2		)	—
Other current liabilities	1.3		9.5			1.1			—			11.9
Total current liabilities	14.7		605.4			41.1			(410.2		)	251.0
Long-term debt, net of current portion	639.5		—			3.8			—			643.3
Amounts due to affiliated companies	—		—			24.0			(24.0		)	—
Other long-term liabilities	2.8		21.4			2.3			—			26.5
Total liabilities	657.0		626.8			71.2			(434.2		)	920.8
Total stockholders' equity	295.8		486.2			24.7			(510.9		)	295.8
Total liabilities and stockholders' equity	$	952.8	$	1,113.0		$	95.9		$	(945.1	)	$	1,216.6

Schedule of Condensed Statement of Operations and Comprehensive Income

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Year Ended December 25, 2011 (in millions)

	Parent Company			Guarantors on a Combined Basis			Non-Guarantors on a Combined Basis			Eliminations			Consolidated
Service revenues	$	—		$	349.3		$	1.7		$	—		$	351.0
Product sales	—			327.4			46.9			(11.4		)	362.9
Total revenues	—			676.7			48.6			(11.4		)	713.9
Cost of service revenues	—			259.2			1.5			—			260.7
Cost of product sales	—			242.5			30.9			(11.4		)	262.0
Total costs	—			501.7			32.4			(11.4		)	522.7
Gross profit	—			175.0			16.2			—			191.2
Selling, general and administrative expenses	15.9			122.3			14.9			—			153.1
Research and development expenses	—			7.9			0.7			—			8.6
Operating income (loss) from continuing operations	(15.9		)	44.8			0.6			—			29.5
Other income (expense):
Interest expense, net	(50.8		)	0.1			(0.4		)	—			(51.1		)
Other income, net	0.3			0.4			(0.7		)	—			—
Total other income and expense, net	(50.5		)	0.5			(1.1		)	—			(51.1		)
Income (loss) from continuing operations before income taxes	(66.4		)	45.3			(0.5		)	—			(21.6		)
Provision (benefit) for income taxes from continuing operations	—			3.0			(1.1		)	—			1.9
Income (loss) from continuing operations	(66.4		)	42.3			0.6			—			(23.5		)
Income (loss) from discontinued operations	—			(0.8		)	0.1			—			(0.7		)
Equity in net income (loss) of subsidiaries	42.2			0.5			—			(42.7		)	—
Net income (loss)	$	(24.2	)	$	42.0		$	0.7		$	(42.7	)	$	(24.2	)
Comprehensive income (loss)	$	(24.4	)	$	41.7		$	0.8		$	(42.5	)	$	(24.4	)

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Year Ended December 30, 2012 (in millions)

	Parent Company			Guarantors on a Combined Basis			Non-Guarantors on a Combined Basis			Eliminations			Consolidated
Service revenues	$	—		$	448.5		$	1.5		$	—		$	450.0
Product sales	—			470.0			64.5			(15.3		)	519.2
Total revenues	—			918.5			66.0			(15.3		)	969.2
Cost of service revenues	—			350.0			0.8			—			350.8
Cost of product sales	—			333.8			42.7			(15.3		)	361.2
Total costs	—			683.8			43.5			(15.3		)	712.0
Gross profit	—			234.7			22.5			—			257.2
Selling, general and administrative expenses	7.4			171.2			13.9			—			192.5
Impairment of goodwill and intangibles	—			96.6			—			—			96.6
Research and development expenses	—			16.9			0.9			—			17.8
Operating income (loss) from continuing operations	(7.4		)	(50.0		)	7.7			—			(49.7		)
Other income (expense):
Interest expense, net	(65.9		)	0.3			(0.5		)	—			(66.1		)
Other income, net	0.3			0.1			0.9			—			1.3
Total other income and expense, net	(65.6		)	0.4			0.4			—			(64.8		)
Income (loss) from continuing operations before income taxes	(73.0		)	(49.6		)	8.1			—			(114.5		)
Provision (benefit) for income taxes from continuing operations	20.8			(22.8		)	0.4			—			(1.6		)
Income (loss) from continuing operations	(93.8		)	(26.8		)	7.7			—			(112.9		)
Income (loss) from discontinued operations	(0.1		)	(2.2		)	0.8			—			(1.5		)
Equity in net income (loss) of subsidiaries	(20.5		)	8.3			—			12.2			—
Net income (loss)	$	(114.4	)	$	(20.7	)	$	8.5		$	12.2		$	(114.4	)
Comprehensive income (loss)	$	(115.0	)	$	20.9		$	9.4		$	11.5		$	(115.0	)

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Year Ended December 29, 2013 (in millions)

	Parent Company			Guarantors on a Combined Basis			Non-Guarantors on a Combined Basis			Eliminations			Consolidated
Service revenues	—			438.2			5.4			—			443.6
Product sales	—			448.6			75.3			(16.9		)	507.0
Total revenues	—			886.8			80.7			(16.9		)	950.6
Cost of service revenues	—			331.3			3.9			—			335.2
Cost of product sales	—			338.9			53.4			(16.9		)	375.4
Total costs	—			670.2			57.3			(16.9		)	710.6
Gross profit	—			216.6			23.4			—			240.0
Selling, general and administrative expenses	5.5			167.2			14.1			—			186.8
Impairment of goodwill and intangibles	—			—			—			—			—
Research and development expenses	—			20.2			1.2			—			21.4
Operating income (loss) from continuing operations	(5.5		)	29.2			8.1			—			31.8
Other income (expense):
Interest expense, net	(65.6		)	2.3			(0.4		)	—			(63.7		)
Other income, net	—			(0.3		)	0.3			—			—
Total other income and expense, net	(65.6		)	2.0			(0.1		)	—			(63.7		)
Income (loss) from continuing operations before income taxes	(71.1		)	31.2			8.0			—			(31.9		)
Provision (benefit) for income taxes from continuing operations	0.6			(0.7		)	0.1			—			—
Income (loss) from continuing operations	(71.7		)	31.9			7.9			—			(31.9		)
Income (loss) from discontinued operations	0.1			(5.4		)	—			—			(5.3		)
Equity in net income (loss) of subsidiaries	34.4			7.9			—			(42.3		)	—
Net income (loss)	$	(37.2	)	$	34.4		$	7.9		$	(42.3	)	$	(37.2	)
Comprehensive income (loss)	$	(37.2	)	$	34.4		$	7.9		$	(42.3	)	$	(37.2	)

Schedule of Condensed Cash Flow Statement

Condensed Consolidating Statement of Cash Flows Year Ended December 25, 2011 (in millions)

	Parent Company			Guarantors on a Combined Basis			Non-Guarantors on a Combined Basis			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	(55.1	)	$	60.5		$	(0.2	)	$	—		$	5.2
Investing activities:
Cash paid for acquisitions, net of cash acquired	(421.0		)	18.0			11.9			—			(391.1		)
Decrease in restricted cash	1.4			1.6			—			—			3.0
Investment in affiliated companies	—			(68.6		)	—			68.6			—
Capital expenditures	(0.2		)	(6.3		)	(1.0		)	—			(7.5		)
Net cash provided by (used in) investing activities from continuing operations	(419.8		)	(55.3		)	10.9			68.6			(395.6		)
Financing activities:
Proceeds from the issuance of common stock	61.1			—			—			—			61.1
Proceeds from the issuance of long-term debt	425.7			—			—			—			425.7
Debt issuance costs paid	(22.1		)	—			—			—			(22.1		)
Purchase of treasury stock	(10.9		)	—			—			—			(10.9		)
Repayment of debt	—			(2.6		)	(0.8		)	—			(3.4		)
Financing from affiliated companies	63.6			—			5.0			(68.6		)	—
Other, net	2.0			—			—			—			2.0
Net cash provided by (used in) financing activities from continuing operations	519.4			(2.6		)	4.2			(68.6		)	452.4
Net cash flows of continuing operations	44.5			2.6			14.9			—			62.0
Net operating cash flows from discontinued operations	—			(2.2		)	(0.5		)	—			(2.7		)
Effect of exchange rate changes on cash and cash equivalents	—			(0.3		)	(0.2		)				(0.5		)
Net increase in cash and cash equivalents	$	44.5		$	0.1		$	14.2		$	—		$	58.8

Condensed Consolidating Statement of Cash Flows Year Ended December 30, 2012 (in millions)

	Parent Company			Guarantors on a Combined Basis			Non-Guarantors on a Combined Basis			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	(98.2	)	$	144.5		$	6.0		$	—		$	52.3
Investing activities:				—			—
Cash paid for acquisitions, net of cash acquired	2.3			(151.7		)	—			—			(149.4		)
Decrease in restricted cash	—			0.6			—			—			0.6
Investment in affiliated companies	(10.8		)	—			(2.0		)	12.8			—
Capital expenditures	(0.5		)	(14.2		)	(1.9		)	—			(16.6		)
Other, net	—			0.3			—			—			0.3
Net cash provided by (used in) investing activities from continuing operations	(9.0		)	(165.0		)	(3.9		)	12.8			(165.1		)
Financing activities:
Proceeds from the issuance of common stock	97.0			—			—			—			97.0
Debt issuance costs paid	(1.2		)	—			—			—			(1.2		)
Repayment of debt	—			(0.5		)	(1.0		)	—			(1.5		)
Financings from affiliated companies	—			12.8			—			(12.8		)	—
Other, net	(3.4		)	—			—			—			(3.4		)
Net cash provided by (used in) financing activities from continuing operations	92.4			12.3			(1.0		)	(12.8		)	90.9
Net cash flows of continuing operations	(14.8		)	(8.2		)	1.1			—			(21.9		)
Net operating cash flows from discontinued operations	—			1.3			—			—			1.3
Effect of exchange rate changes on cash and cash equivalents	—			—			—						—
Net increase (decrease) in cash and cash equivalents	$	(14.8	)	$	(6.9	)	$	1.1		$	—		$	(20.6	)

Condensed Consolidating Statement of Cash Flows Year Ended December 29, 2013 (in millions)

	Parent Company			Guarantors on a Combined Basis			Non-Guarantors on a Combined Basis			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	(65.9	)	$	87.5		$	1.0		$	—		$	22.6
Investing activities:				—			—
Cash paid for acquisitions, net of cash acquired	—			2.2			—			—			2.2
Decrease in restricted cash	—			0.4			—			—			0.4
Proceeds from the sale of discontinued operations	—			1.3			—			—			1.3
Investment in affiliated companies	—			(74.8		)	—			74.8			—
Capital Expenditures	(1.4		)	(12.3		)	(2.9		)	—			(16.6		)
Net cash provided by (used in) investing activities from continuing operations	(1.4		)	(83.2		)	(2.9		)	74.8			(12.7		)
Financing activities:
Cash paid for contingent acquisition consideration	—			(2.1		)	—			—			(2.1		)
Repayment of debt	—			—			(1.0		)	—			(1.0		)
Purchase of ESPP shares	1.1			—			—			—			1.1
Financings from affiliated companies	71.1			—			3.7			(74.8		)	—
Other, net	—			—			—			—			—
Net cash provided by (used in) financing activities from continuing operations	72.2			(2.1		)	2.7			(74.8		)	(2.0		)
Net cash flows of continuing operations	4.9			2.2			0.8			—			7.9
Net operating cash flows from discontinued operations	—			(1.3		)	—			—			(1.3		)
Effect of exchange rate changes on cash and cash equivalents	—			—			0.1			—			0.1
Net increase (decrease) in cash and cash equivalents	$	4.9		$	0.9		$	0.9		$	—		$	6.7

Organization and Summary of Significant Accounting Policies (Details)	12 Months Ended
	Dec. 29, 2013 USD ($) Segment type_of_contract $ / shares	Dec. 30, 2012 USD ($) $ / shares	Dec. 25, 2011 USD ($) $ / shares
Significant Accounting Policies Disclosure [Line Items]
Number of principal business segments \| Segment	2
Fiscal year duration	364 days	371 days	364 days
Number of different types of contractual arrangements \| type_of_contract	3
Number of basic categories of fixed price contracts \| type_of_contract	3
Provisions for losses on contracts	$ 4,800,000	$ 4,200,000
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract]
Employee Stock Purchase Plan offering & expense recognition period	6 months
Incremental tax benefits from exercise of stock options	$ 0	0	$ 0
Cash received from the exercise of stock options and awards		0	1,300,000
Stock-based compensation expense, amount recognized in the consolidated financial statements	$ 7,400,000	$ 6,600,000	$ 3,300,000
Impact on net income (loss) per common share, basic and diluted (in dollars per share) \| $ / shares	$ (0.13)	$ (0.14)	$ (0.12)
Movement in Valuation Allowances and Reserves [Roll Forward]
Provisions	$ 1,000,000	$ 400,000	$ 1,800,000
Restricted cash	5,000,000	5,500,000
Interest Income (Expense), Net [Abstract]
Interest expense incurred primarily on the Company's Senior Secured Notes	(63,900,000)	(66,400,000)	(51,200,000)
Miscellaneous interest income	200,000	300,000	100,000
Interest expense, net	(63,700,000)	(66,100,000)	(51,100,000)
Foreign currency transaction loss	$ 0	600,000	500,000
Minimum
Significant Accounting Policies Disclosure [Line Items]
Fiscal year duration	364 days
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract]
Share-based incentive award vesting period	5 years
Movement in Valuation Allowances and Reserves [Roll Forward]
Useful life of finite-lived intangible assets	1 year
Interest Income (Expense), Net [Abstract]
Warranty coverage period	1 year
Maximum
Significant Accounting Policies Disclosure [Line Items]
Fiscal year duration	371 days
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract]
Share-based incentive award vesting period	10 years
Movement in Valuation Allowances and Reserves [Roll Forward]
Useful life of finite-lived intangible assets	15 years
Interest Income (Expense), Net [Abstract]
Warranty coverage period	10 years
Buildings and improvements \| Minimum
Movement in Valuation Allowances and Reserves [Roll Forward]
Useful life of property and equipment	15 years
Buildings and improvements \| Maximum
Movement in Valuation Allowances and Reserves [Roll Forward]
Useful life of property and equipment	39 years
Machinery and equipment \| Minimum
Movement in Valuation Allowances and Reserves [Roll Forward]
Useful life of property and equipment	3 years
Machinery and equipment \| Maximum
Movement in Valuation Allowances and Reserves [Roll Forward]
Useful life of property and equipment	10 years
Computer equipment and software \| Minimum
Movement in Valuation Allowances and Reserves [Roll Forward]
Useful life of property and equipment	1 year
Computer equipment and software \| Maximum
Movement in Valuation Allowances and Reserves [Roll Forward]
Useful life of property and equipment	10 years
Vehicles, furniture, and office equipment \| Maximum
Movement in Valuation Allowances and Reserves [Roll Forward]
Useful life of property and equipment	5 years
Allowance for Doubtful Accounts
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at Beginning of Year	$ 1,400,000	2,000,000	700,000
Provisions	1,000,000	400,000	1,800,000
Write-offs/Recoveries	(200,000)	(1,000,000)	(500,000)
Balance at End of Year	2,200,000	1,400,000	2,000,000
Continuing operations
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract]
Stock-based compensation expense, amount recognized in the consolidated financial statements	7,400,000	6,600,000	3,300,000
Selling, general and administrative expenses
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract]
Stock-based compensation expense, amount recognized in the consolidated financial statements	7,400,000	6,600,000	$ 3,300,000
Purchase order not received
Significant Accounting Policies Disclosure [Line Items]
Accounts receivable	$ 3,700,000	$ 3,700,000
Stock options \| Maximum
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract]
Share-based incentive award vesting period	6 years

Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended	12 Months Ended
	Jun. 30, 2012	Jun. 24, 2012	Dec. 30, 2012	Dec. 29, 2013	Dec. 25, 2011
Goodwill [Line Items]
Impairments			$ (82.0)
Goodwill [Roll Forward]
Balance as of December 25, 2011			596.5		$ 571.6
Additions due to business combinations			106.9
Impairments			(82.0)
Retrospective adjustments			(0.1)
Balance as of December 29, 2013			596.4
Accumulated impairment losses				$ 247.4
Public Safety & Security
Goodwill [Line Items]
Impairments			0.0
Goodwill [Roll Forward]
Balance as of December 25, 2011			35.6		33.0
Additions due to business combinations			2.6
Impairments			0.0
Retrospective adjustments			0.0
Balance as of December 29, 2013			35.6
Accumulated impairment losses				18.3
Kratos Government Solutions
Goodwill [Line Items]
Impairments			(82.0)
Percentage by which goodwill fair value exceeded carrying value	7.40%
Goodwill [Roll Forward]
Balance as of December 25, 2011			560.9		$ 538.6
Additions due to business combinations			104.3
Impairments			(82.0)
Retrospective adjustments			(0.1)
Balance as of December 29, 2013			$ 560.8
Accumulated impairment losses				$ 229.1
Discontinued operations
Goodwill [Line Items]
Impairments		$ (1.5)
Goodwill [Roll Forward]
Impairments		$ (1.5)
Discontinued operations \| Integral Systems, Inc.
Goodwill [Line Items]
Impairments	$ (1.5)
Goodwill [Roll Forward]
Impairments	$ (1.5)

Goodwill and Other Intangible Assets - Purchased Intangible Assets (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 29, 2013	Sep. 29, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 30, 2012	Sep. 30, 2012	Jun. 24, 2012	Mar. 25, 2012	Dec. 29, 2013	Dec. 30, 2012	Dec. 25, 2011
Acquired finite-lived intangible assets:
Gross Value	$ 207.7				$ 207.7				$ 207.7	$ 207.7
Accumulated Amortization	(144.7)				(108.5)				(144.7)	(108.5)
Net Value	63.0				99.2				63.0	99.2
Acquired indefinite-lived intangible assets
Total indefinite-lived intangible assets	6.9				6.9				6.9	6.9
Total intangible assets, Gross Value	214.6				214.6				214.6	214.6
Total intangible assets, Net Value	69.9				106.1				69.9	106.1
Consolidated amortization expense related to intangible assets subject to amortization	8.9	$ 9.0	$ 9.0	$ 9.3	11.5	$ 13.0	$ 8.9	$ 10.5	36.2	43.9	$ 38.0
Customer relationships
Acquired finite-lived intangible assets:
Gross Value	97.7				97.7				97.7	97.7
Accumulated Amortization	(53.7)				(36.2)				(53.7)	(36.2)
Net Value	44.0				61.5				44.0	61.5
Contracts and backlog
Acquired finite-lived intangible assets:
Gross Value	80.0				80.0				80.0	80.0
Accumulated Amortization	(78.7)				(64.3)				(78.7)	(64.3)
Net Value	1.3				15.7				1.3	15.7
Developed technology and technical know-how
Acquired finite-lived intangible assets:
Gross Value	22.1				22.1				22.1	22.1
Accumulated Amortization	(8.6)				(6.4)				(8.6)	(6.4)
Net Value	13.5				15.7				13.5	15.7
Trade names
Acquired finite-lived intangible assets:
Gross Value	6.1				6.1				6.1	6.1
Accumulated Amortization	(3.1)				(1.2)				(3.1)	(1.2)
Net Value	3.0				4.9				3.0	$ 4.9
Acquired indefinite-lived intangible assets
Remaining useful life										2 years
Finite-lived intangible assets impairment charge										$ 14.6
Favorable operating lease
Acquired finite-lived intangible assets:
Gross Value	1.8				1.8				1.8	1.8
Accumulated Amortization	(0.6)				(0.4)				(0.6)	(0.4)
Net Value	$ 1.2				$ 1.4				$ 1.2	1.4
Public Safety & Security \| Trade names
Acquired indefinite-lived intangible assets
Finite-lived intangible assets impairment charge										12.9
Kratos Government Solutions \| Trade names
Acquired indefinite-lived intangible assets
Finite-lived intangible assets impairment charge										$ 1.7

Goodwill and Other Intangible Assets - Intangible Asset Amortization (Details) - USD ($) $ in Millions	Dec. 29, 2013	Dec. 30, 2012
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2014	$ 21.7
2015	14.4
2016	9.7
2017	8.2
2018	3.9
Thereafter	5.1
Total	$ 63.0	$ 99.2

Acquisitions - Composite Engineering, Inc. (Details) - USD ($) $ / shares in Units, shares in Millions				3 Months Ended								12 Months Ended
	Jul. 02, 2012	May 14, 2012	Feb. 11, 2011	Dec. 29, 2013	Sep. 29, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 30, 2012	Sep. 30, 2012	Jun. 24, 2012	Mar. 25, 2012	Dec. 29, 2013	Dec. 30, 2012	Dec. 25, 2011
Business Acquisition [Line Items]
Gross proceeds from issuance of common stock		$ 100,000,000	$ 64,800,000
Proceeds from the issuance of common stock, net of issuance costs		$ 97,000,000	$ 61,100,000									$ 0	$ 97,000,000	$ 61,100,000
Revenues												100,900,000	116,200,000	54,300,000
Operating income (loss)				$ 5,400,000	$ 6,100,000	$ 8,900,000	$ 11,400,000	$ (80,300,000)	$ 14,100,000	$ 7,400,000	$ 9,100,000	31,800,000	(49,700,000)	$ 29,500,000
Revolving credit facility
Business Acquisition [Line Items]
Outstanding borrowings				$ 0								$ 0
Composite Engineering, Inc.
Business Acquisition [Line Items]
Consideration transferred	$ 164,200,000
Aggregate amount of cash paid	$ 135,000,000
Common stock issued for acquisitions (in shares)	4.0	20.0
Purchase price (in dollars per share)	$ 5.94	$ 5.00
Value of common stock exchanged as consideration	$ 23,800,000
Working capital adjustment	1,000,000
Consideration transferred, retirement of acquiree's debt	5,500,000
Tax deductible goodwill	$ 136,300,000
Tax deductible goodwill, deduction realization period	15 years
Gross proceeds from issuance of common stock		$ 100,000,000
Proceeds from the issuance of common stock, net of issuance costs		97,000,000
Revenues													68,200,000
Operating income (loss)													$ 1,600,000
Composite Engineering, Inc. \| Revolving credit facility
Business Acquisition [Line Items]
Outstanding borrowings		$ 40,000,000
Composite Engineering, Inc. \| Restricted Stock Units (RSUs) \| Management
Business Acquisition [Line Items]
Number of shares issued as part of long-term employment agreements	2.0
Fair value of shares issued as part of long-term employment agreements	$ 11,900,000
Share-based compensation, period for recognition	4 years
Composite Engineering, Inc. \| Escrow account
Business Acquisition [Line Items]
Contingent consideration, fair value	$ 10,700,000

Acquisitions - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions	Dec. 29, 2013	Dec. 30, 2012	Jul. 02, 2012	Dec. 30, 2011	Nov. 15, 2011	Jul. 27, 2011	Mar. 25, 2011
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Goodwill	$ 596.4	$ 596.4
Composite Engineering, Inc.
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Cash			$ 8.9
Accounts receivable			9.3
Inventoried costs			12.3
Other current assets			8.9
Property and equipment			8.1
Intangible assets			38.0
Goodwill			104.2
Total assets			189.7
Current liabilities			(25.7)
Net assets acquired			$ 164.0
Critical Infrastructure Business
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Accounts receivable				$ 23.4
Other assets				0.5
Intangible assets				2.0
Goodwill				2.6
Total assets				28.5
Current liabilities				(9.7)
Net assets acquired				$ 18.8
SecureInfo Corporation
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [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 Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [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 Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [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 - Critical Infrastructure Business (Details) - Critical Infrastructure Business $ in Millions	Dec. 30, 2011 USD ($)
Business Acquisition [Line Items]
Consideration transferred	$ 18.8
Recurring Critical Infrastructure Business revenues, percentage	15.00%

Acquisitions - SecureInfo Corporation (Details) - USD ($) $ in Millions		3 Months Ended								12 Months Ended
	Nov. 15, 2011	Dec. 29, 2013	Sep. 29, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 30, 2012	Sep. 30, 2012	Jun. 24, 2012	Mar. 25, 2012	Dec. 29, 2013	Dec. 30, 2012	Dec. 25, 2011
Business Acquisition [Line Items]
Revenues										$ 100.9	$ 116.2	$ 54.3
Operating income (loss)		$ 5.4	$ 6.1	$ 8.9	$ 11.4	$ (80.3)	$ 14.1	$ 7.4	$ 9.1	$ 31.8	$ (49.7)	29.5
SecureInfo Corporation
Business Acquisition [Line Items]
Purchase price	$ 20.3
Revenues												1.9
Operating income (loss)												$ 0.1
SecureInfo Corporation \| Earnout
Business Acquisition [Line Items]
Purchase price	$ 1.5

Acquisitions - Integral Systems, Inc. (Details) - USD ($)			3 Months Ended								12 Months Ended
	Jul. 27, 2011	Mar. 25, 2011	Dec. 29, 2013	Sep. 29, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 30, 2012	Sep. 30, 2012	Jun. 24, 2012	Mar. 25, 2012	Dec. 29, 2013	Dec. 30, 2012	Dec. 25, 2011	May 19, 2010
Business Acquisition [Line Items]
Principal			$ 629,800,000				$ 630,700,000				$ 629,800,000	$ 630,700,000
Long-term debt premium			14,500,000				18,700,000				14,500,000	18,700,000
Revenues											100,900,000	116,200,000	$ 54,300,000
Operating income (loss)			5,400,000	$ 6,100,000	$ 8,900,000	$ 11,400,000	$ (80,300,000)	$ 14,100,000	$ 7,400,000	$ 9,100,000	31,800,000	$ (49,700,000)	29,500,000
Senior notes \| Senior Notes due June 2017
Business Acquisition [Line Items]
Principal	$ 115,000,000	$ 285,000,000	$ 625,000,000								$ 625,000,000			$ 225,000,000
Stated interest rate percentage	10.00%	10.00%	10.00%								10.00%			10.00%
Effective interest rate	8.90%	8.50%
Proceeds from issuance of senior notes, gross	$ 122,500,000	$ 314,000,000
Long-term debt premium	5,800,000	20,000,000
Accrued interest	1,700,000	$ 9,000,000
Integral Systems, Inc.
Business Acquisition [Line Items]
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
Amount of cash received by each stockholder of Integral (in dollars per share)	$ 5.00
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 exchange terms (in dollars per share)	$ 13.00
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 (in dollars per share)	$ 13.00
Number of years in business	30 years
Revenues													87,300,000
Operating income (loss)													$ 7,100,000
Integral Systems, Inc. \| Senior notes \| Senior Notes due June 2017
Business Acquisition [Line Items]
Principal	$ 115,000,000.0
Stated interest rate percentage	10.00%
Issuance premium, percentage	105.00%
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

Acquisitions - Herley Industries, Inc. (Details) - USD ($) $ / shares in Units, shares in Millions						3 Months Ended								12 Months Ended
	May 14, 2012	Apr. 15, 2011	Mar. 27, 2011	Mar. 25, 2011	Feb. 11, 2011	Dec. 29, 2013	Sep. 29, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 30, 2012	Sep. 30, 2012	Jun. 24, 2012	Mar. 25, 2012	Dec. 29, 2013	Dec. 30, 2012	Dec. 25, 2011	Jul. 27, 2011	May 19, 2010
Business Acquisition [Line Items]
Gross proceeds from issuance of common stock	$ 100,000,000				$ 64,800,000
Proceeds from the issuance of common stock, net of issuance costs	$ 97,000,000				$ 61,100,000									$ 0	$ 97,000,000	$ 61,100,000
Principal						$ 629,800,000				$ 630,700,000				629,800,000	630,700,000
Revenues														100,900,000	116,200,000	54,300,000
Operating income (loss)						5,400,000	$ 6,100,000	$ 8,900,000	$ 11,400,000	$ (80,300,000)	$ 14,100,000	$ 7,400,000	$ 9,100,000	31,800,000	$ (49,700,000)	29,500,000
Senior notes \| Senior Notes due June 2017
Business Acquisition [Line Items]
Principal				$ 285,000,000		$ 625,000,000								$ 625,000,000			$ 115,000,000	$ 225,000,000
Herley Industries, Inc.
Business Acquisition [Line Items]
Number of shares acquired				13.2
Voting interests acquired, percentage				94.00%
Fair value of non-controlling interest				$ 16,900,000
Share price used to calculate fair value (in dollars per share)				$ 19.00
Non-controlling interest, number of shares				0.9
Aggregate amount of cash paid		$ 270,700,000	$ 245,500,000	$ 45,000,000
Conversion to Kratos common stock ratio				1.3495
Common stock issued to assume the Herley Options (in shares)				0.8
Common stock issued to assume the Herley Options, fair value				$ 1,900,000
Purchase price				$ 272,500,000
Common stock issued in acquisition, shares					4.9
Purchase price (in dollars per share)					$ 13.25
Gross proceeds from issuance of common stock					$ 64,800,000
Proceeds from the issuance of common stock, net of issuance costs					$ 61,100,000
Number of years in business				45 years
Revenues																150,800,000
Operating income (loss)																$ 12,700,000
Herley Industries, Inc. \| Senior notes \| Senior Notes due June 2017
Business Acquisition [Line Items]
Principal				$ 285,000,000.0
Issuance premium, percentage				107.00%
Herley Industries, Inc. \| Change in control obligations
Business Acquisition [Line Items]
Change in control obligations assumed				$ 4,000,000
Herley Industries, Inc. \| Combined transaction expenses
Business Acquisition [Line Items]
Combined transaction expenses				$ 11,100,000

Acquisitions - Pro Forma Financial Information (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions			12 Months Ended
	Jul. 27, 2011	Feb. 11, 2011	Dec. 30, 2012	Dec. 25, 2011
Business Acquisition, Pro Forma Information [Abstract]
Pro forma revenues			$ 1,019.5	$ 1,046.9
Pro forma net loss before tax			(132.0)	(63.6)
Pro forma net loss			(130.4)	(67.1)
Net loss attributable to the registrant			$ (112.9)	$ (23.5)
Basic and diluted pro forma loss per share (in dollars per share)			$ (2.31)	$ (1.15)
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	12 Months Ended
	Dec. 29, 2013	Dec. 30, 2012	Dec. 25, 2011
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Net income (loss) adjustment, pro forma	$ (37.2)	$ (114.4)	$ (24.2)
Intangible amortization
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Net income (loss) adjustment, pro forma		16.2	32.8
Net change in stock compensation expense
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Net income (loss) adjustment, pro forma		2.2	(1.4)
Net change in interest expense
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Net income (loss) adjustment, pro forma		0.0	(9.9)
Net change in income tax expense
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Net income (loss) adjustment, pro forma		$ 0.0	$ (1.6)
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		9.6	30.7

Acquisitions - Contingent Acquisition Consideration (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended	12 Months Ended
	Apr. 30, 2013	Dec. 30, 2012	Dec. 29, 2013	Dec. 30, 2012	Dec. 25, 2011
Business Acquisition, Contingent Consideration [Roll Forward]
Beginning balance			$ 2.1	$ 7.6
Cash payments			(2.1)	(4.0)
Post acquisition adjustments reflected in operating results				(1.5)
Ending balance		$ 2.1	0.0	2.1	$ 7.6
SecureInfo
Business Acquisition, Contingent Consideration [Roll Forward]
Beginning balance			0.0	1.5
Cash payments			0.0	(1.5)
Post acquisition adjustments reflected in operating results				0.0
Ending balance		0.0	0.0	0.0	1.5
DEI
Business Acquisition, Contingent Consideration [Roll Forward]
Beginning balance			2.1	5.0
Cash payments			(2.1)	(2.5)
Post acquisition adjustments reflected in operating results				(0.4)
Ending balance		2.1	0.0	2.1	5.0
Change in fair value of contingent acquisition consideration	$ 2.1		5.0
SCT
Business Acquisition, Contingent Consideration [Roll Forward]
Beginning balance			0.0	1.1
Cash payments			0.0	0.0
Post acquisition adjustments reflected in operating results				(1.1)
Ending balance		0.0	$ 0.0	$ 0.0	$ 1.1
Change in fair value of contingent acquisition consideration		$ 1.1
Discount rate used in valuing contingent consideration					6.10%

Balance Sheet Details - Accounts Receivable and Inventory (Details) - USD ($) $ in Millions	Dec. 29, 2013	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010
Cash and Cash Equivalents [Abstract]
Cash and cash equivalents	$ 55.7	$ 49.0	$ 69.6	$ 10.8
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total current accounts receivable	268.1	273.3
Allowance for doubtful accounts	(2.3)	(1.4)
Total current accounts receivable, net	265.8	271.9
Total accounts receivable, net	265.9	272.2
Retainages receivable	6.2	3.5
Inventory, Net of Allowances, Customer Advances and Progress Billings [Abstract]
Raw materials	44.5	48.4
Work in process	24.3	36.5
Finished goods	4.6	7.3
Supplies and other	1.9	2.2
Subtotal inventoried costs	75.3	94.4
Less customer advances and progress payments	(0.7)	(0.1)
Total inventoried costs	74.6	94.3
Billed
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total current accounts receivable	150.2	137.9
Unbilled
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total current accounts receivable	117.9	135.4
Unbilled, long-term (included in other assets)	0.1	0.3
U.S. Government
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total accounts receivable, net	51.4	64.0
U.S. Government \| Billed
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total accounts receivable, net	19.8	24.6
U.S. Government \| Unbilled
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total accounts receivable, net	$ 31.6	$ 39.4

Balance Sheet Details - Property, Plant and Equipment (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 29, 2013	Dec. 30, 2012	Dec. 25, 2011
Property, Plant and Equipment [Line Items]
Property and equipment	$ 134.9	$ 120.8
Accumulated depreciation and amortization	(50.1)	(35.2)
Total property and equipment, net	84.8	85.6
Depreciation expense	17.2	14.1	$ 10.0
Land and buildings
Property, Plant and Equipment [Line Items]
Property and equipment	21.0	20.8
Computer equipment and software
Property, Plant and Equipment [Line Items]
Property and equipment	20.0	17.2
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property and equipment	59.0	49.9
Furniture and office equipment
Property, Plant and Equipment [Line Items]
Property and equipment	15.4	12.2
Facility under capital lease
Property, Plant and Equipment [Line Items]
Property and equipment	1.0	1.0
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment	13.7	13.9
Construction in progress
Property, Plant and Equipment [Line Items]
Property and equipment	$ 4.8	$ 5.8

Debt - Issuance of 10% Senior Secured Notes due 2017 (Details)					12 Months Ended
	Jul. 27, 2011 USD ($)	Apr. 15, 2011 USD ($)	Mar. 27, 2011 USD ($)	Mar. 25, 2011 USD ($)	Dec. 29, 2013 USD ($) offering	Dec. 30, 2012 USD ($)	May 04, 2012 USD ($)	Nov. 15, 2011 USD ($)	May 19, 2010 USD ($)
Debt Instrument [Line Items]
Principal					$ 629,800,000	$ 630,700,000
Long-term debt premium					$ 14,500,000	$ 18,700,000
Herley Industries, Inc.
Debt Instrument [Line Items]
Company's cash contribution to finance part of Herley acquisition consideration		$ 270,700,000	$ 245,500,000	$ 45,000,000
Revolving credit facility
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 65,000,000.0						$ 110,000,000.0	$ 90,000,000.0
Senior notes \| Senior Notes due June 2017
Debt Instrument [Line Items]
Stated interest rate percentage	10.00%			10.00%	10.00%				10.00%
Principal	$ 115,000,000			$ 285,000,000	$ 625,000,000				$ 225,000,000
Long-term debt premium	$ 5,800,000			$ 20,000,000
Effective interest rate	8.90%			8.50%
Fixed charge coverage ratio					2.0
Number of debt offerings \| offering					3
Proceeds from debt issuance	$ 122,500,000			$ 314,000,000
Accrued interest	$ 1,700,000			9,000,000
Senior notes \| Senior Notes due June 2017 \| Herley Industries, Inc.
Debt Instrument [Line Items]
Principal				$ 285,000,000.0
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%

Debt - $110.0 million Credit Facility (Details) shares in Millions	May 14, 2012 shares	Jul. 27, 2011 USD ($)	Dec. 29, 2013 USD ($)	May 04, 2012 USD ($)	Nov. 15, 2011 USD ($)
Line of Credit Facility [Line Items]
Common stock issued for cash (in shares) \| shares	20.0
Revolving credit facility
Line of Credit Facility [Line Items]
Maximum borrowing capacity		$ 65,000,000.0		$ 110,000,000.0	$ 90,000,000.0
Maturity period		5 years
Maximum possible borrowing capacity subject to application and bank approval				$ 135,000,000.0
Outstanding borrowings			$ 0
Remaining borrowing capacity			79,900,000
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%
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		$ 50,000,000.0
Outstanding borrowings			$ 10,700,000
Swing line loan
Line of Credit Facility [Line Items]
Maximum borrowing capacity		$ 10,000,000.0

Debt - Debt Acquired in Acquisition of Herley (Details) - USD ($)		12 Months Ended
	Sep. 16, 2008	Dec. 29, 2013	Dec. 30, 2012
Debt Instrument [Line Items]
Principal		$ 629,800,000	$ 630,700,000
Carrying Amount		644,300,000	$ 649,400,000
10-year term loan
Debt Instrument [Line Items]
Principal	$ 10,000,000.0
Maturity period	10 years
Carrying Amount		4,800,000
Quarterly installment payment - principal		$ 300,000
Basis spread on variable rate		1.50%

Debt - Fair Value and Future Maturities of Long-Term Debt (Details) - USD ($) $ in Millions	Dec. 29, 2013	Dec. 30, 2012
Debt Disclosure [Abstract]
Principal	$ 629.8	$ 630.7
Carrying Amount	644.3	649.4
Fair Value	679.7	690.5
Long-term debt premium	14.5	$ 18.7
Maturities of Long-term Debt [Abstract]
Maturities of long-term debt in 2014	1.0
Maturities of long-term debt in 2015	1.0
Maturities of long-term debt in 2016	1.0
Maturities of long-term debt in 2017	626.0
Maturities of long-term debt in 2018	$ 0.8

Lease Commitments (Details) $ in Millions	12 Months Ended
Lease Commitments (Details) $ in Millions	Dec. 29, 2013 USD ($)	Dec. 30, 2012 USD ($)	Dec. 25, 2011 USD ($) ft²
Leases [Abstract]
Sublease income on operating leases	$ 7.1
Capital Leases
2014	0.4
2015	0.1
2016	0.0
2017	0.0
2018	0.0
Thereafter	0.0
Total future minimum lease payments	0.5
Less amount representing interest	0.1
Present value of capital lease obligations	0.4
Less current portion	0.3	$ 0.5
Capital lease obligations, net of current portion	0.1	0.4
Net Operating Leases
2014	15.9
2015	13.0
2016	10.9
2017	9.6
2018	8.8
Thereafter	12.7
Total future minimum lease payments	70.9
Capital Leased Assets [Line Items]
Property under capital leases by major class, gross	1.9	2.0
Less: Accumulated amortization	1.7	1.5
Property under capital leases by major class, net	0.2	0.5
Amortization expense related to capital leases	0.2	0.1	$ 0.1
Gross rent expense under operating leases	16.7	21.1	12.8
Sublease income	2.3	2.7	1.3
Accrual for Unused Facilities [Roll Forward]
Accrual for excess facilities - beginning balance	18.7	18.5
Fair value of liability assumed in acquisition		1.8
Adjustments of excess facility accruals	(4.7)
Cash payments	(1.6)	(1.6)
Accrual for excess facilities - ending balance	12.4	18.7	18.5
Deferred rent	3.2	1.3	$ 1.0
Integral
Capital Leased Assets [Line Items]
Rentable area of acquired property \| ft²			131,450
Area subleased \| ft²			83,000
Accrual for Unused Facilities [Roll Forward]
Accrual for excess facilities - beginning balance		19.0
Accrual for excess facilities - ending balance			$ 19.0
Facilities
Capital Leased Assets [Line Items]
Property under capital leases by major class, gross	1.0	1.0
Vehicles
Capital Leased Assets [Line Items]
Property under capital leases by major class, gross	0.5	0.5
Office equipment
Capital Leased Assets [Line Items]
Property under capital leases by major class, gross	$ 0.4	$ 0.5

Net Loss Per Common Share - Antidilutive Securities (Details) - shares shares in Millions	12 Months Ended
	Dec. 29, 2013	Dec. 30, 2012	Dec. 25, 2011
Shares from stock options and awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of EPS (in shares)	2.6	3.6	2.1

Income Taxes - Components of Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 29, 2013	Sep. 29, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 30, 2012	Sep. 30, 2012	Jun. 24, 2012	Mar. 25, 2012	Dec. 29, 2013	Dec. 30, 2012	Dec. 25, 2011
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract]
Domestic									$ (39.4)	$ (120.3)	$ (20.7)
Foreign									7.5	5.8	(0.9)
Loss from continuing operations before income taxes									(31.9)	(114.5)	(21.6)
Federal income taxes:
Current									(1.7)	0.0	(1.5)
Deferred									0.3	(3.5)	0.6
Total Federal									(1.4)	(3.5)	(0.9)
State and local income taxes
Current									2.0	0.8	3.1
Deferred									(0.7)	0.4	0.8
Total State and local									1.3	1.2	3.9
Foreign income taxes:
Current									0.1	0.1	0.4
Deferred									0.0	0.6	(1.5)
Total Foreign									0.1	0.7	(1.1)
Total	$ (2.9)	$ 0.2	$ (0.1)	$ 2.8	$ (5.4)	$ 1.3	$ 6.6	$ (4.1)	$ 0.0	$ (1.6)	$ 1.9

Income Taxes - Reconciliation of Income Tax Provision (Details) (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 29, 2013	Sep. 29, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 30, 2012	Sep. 30, 2012	Jun. 24, 2012	Mar. 25, 2012	Dec. 29, 2013	Dec. 30, 2012	Dec. 25, 2011
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract]
Income tax expense (benefit) at federal statutory rate									$ (11.1)	$ (40.1)	$ (7.6)
State taxes, net of federal tax benefit and valuation allowance									1.8	0.7	3.1
Difference in tax rates between U.S. and foreign									(2.6)	(1.5)	(0.1)
Nondeductible expense									0.7	0.3	0.4
Increase (decrease) in reserve for uncertain tax positions									(1.4)	0.1	(1.7)
Transaction costs									0.0	0.1	2.3
Changes to indefinite life items and separate state deferred taxes									(0.4)	(3.0)	1.5
Impact of purchase accounting									0.0	0.0	0.0
Goodwill impairment									0.0	27.6	0.0
Total	$ (2.9)	$ 0.2	$ (0.1)	$ 2.8	$ (5.4)	$ 1.3	$ 6.6	$ (4.1)	0.0	(1.6)	1.9
Foreign
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract]
Increase (decrease) in valuation allowance									0.0	0.0	(0.7)
Federal
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract]
Increase (decrease) in valuation allowance									$ 13.0	$ 14.2	$ 4.7

Income Taxes - Deferred Taxes (Details) (Details) - USD ($) $ in Millions	Dec. 29, 2013	Dec. 30, 2012
Deferred tax assets:
Allowance for doubtful accounts	$ 0.7	$ 0.4
Sundry accruals	2.8	3.3
Vacation accrual	5.2	5.1
Stock-based compensation	6.1	4.6
Payroll related accruals	3.3	2.7
Lease accruals	9.1	9.7
Investments	1.9	1.9
Net operating loss carryforwards	118.2	124.8
Tax credit carryforwards	5.1	3.7
Deferred revenue	2.4	2.1
Reserves and other	10.2	10.2
Gross deferred tax assets	165.0	168.5
Valuation allowance	(123.1)	(110.4)
Total deferred tax assets, net of allowance	41.9	58.1
Deferred tax liabilities:
Unearned revenue	(35.8)	(42.0)
Other intangibles	(4.7)	(15.7)
Property and equipment, principally due to differences in depreciation	(7.7)	(7.9)
Other	(0.9)	0.0
Total deferred tax liabilities	(49.1)	(65.6)
Net deferred tax asset (liability)	$ (7.2)	$ (7.5)

Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 29, 2013	Dec. 30, 2012	Dec. 25, 2011
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance at the beginning of period	$ 13.4	$ 10.1	$ 12.4
Increases related to prior periods (acquired entities)	3.3	3.7	0.5
Increases related to current year tax positions	1.7	0.0	0.2
Expiration of applicable statutes of limitations	(2.6)	(0.1)	(0.6)
Settlements with taxing authorities	0.0	(0.3)	(2.4)
Balance at the end of period	$ 15.8	$ 13.4	$ 10.1

Income Taxes - Narrative (Details) - USD ($)	12 Months Ended
Income Taxes - Narrative (Details) - USD ($)	Dec. 29, 2013	Dec. 30, 2012	Dec. 25, 2011
Income Tax Disclosure [Abstract]
Federal statutory income tax rate	35.00%	35.00%	35.00%
Net increase in valuation allowance	$ 13,000,000
Operating Loss Carryforwards [Line Items]
Federal annual utilization of NOL carryforwards limit, next five years	$ 27,000,000
Threshold period for change in allowed annual amount of NOL to be recognized	5 years
Federal annual utilization of NOL carryforwards limit, after year five	$ 11,600,000
Unrecognized deferred income taxes or foreign withholding taxes	15,700,000
Unrecognized deferred income taxes or foreign withholding taxes, cash and cash equivalents available for distribution	16,000,000
Unrecognized tax benefits that if recognized would affect effective tax rate	15,800,000
Amount that would become a deferred tax asset included in unrecognized tax benefits that would impact the effective tax rate	14,500,000
Income tax penalties and interest expense	200,000	$ 400,000	$ 300,000
Benefit for income tax penalties and interest related to reversal of prior positions	200,000	100,000	400,000
Total interest and penalties accrued	700,000	$ 700,000	$ 400,000
Unrecognized tax benefits that will expire within the next 12 months	0
Share-based compensation cost
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	14,400,000
Federal
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	325,400,000
State
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	$ 237,400,000

Discontinued Operations (Details) $ in Millions	1 Months Ended	3 Months Ended		12 Months Ended
Discontinued Operations (Details) $ in Millions	Apr. 30, 2013 USD ($)	Mar. 31, 2013 USD ($)	Jun. 24, 2012 USD ($)	Dec. 29, 2013 USD ($) buyer	Dec. 30, 2012 USD ($)	Dec. 25, 2011 USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Goodwill impairment charge associated with discontinued operations					$ 82.0
Number of buyers of divested business \| buyer				2
Total cash and assumptions of liabilities for divested operations				$ 0.8
Cash consideration received from divestiture	$ 0.5				0.3
Impairment charge related to management's estimate of the fair value of the business		$ 1.2
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
Revenue				3.7	18.5	$ 9.2
Loss before taxes				(5.3)	(1.8)	(1.3)
Benefit for income taxes				0.0	(0.3)	(0.6)
Net loss				(5.3)	(1.5)	$ (0.7)
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract]
Accounts receivable, net				0.0	3.4
Inventoried costs				0.0	3.0
Other current assets				0.0	0.2
Current assets of discontinued operations				0.0	6.6
Property and equipment, net				0.0	0.4
Other assets				0.0	0.4
Long-term assets of discontinued operations				0.0	0.8
Accrued expenses and accounts payable				1.1	4.4
Billings in excess of costs and earnings on uncompleted contracts				0.0	0.1
Other current liabilities				1.4	0.4
Current liabilities of discontinued operations				2.5	4.9
Other long-term liabilities				0.2	0.3
Long-term liabilities of discontinued operations				$ 0.2	$ 0.3
Discontinued operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Goodwill impairment charge associated with discontinued operations			$ 1.5

Stockholders' Equity - Common and Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Millions						12 Months Ended
	May 14, 2012	Dec. 01, 2011	Jul. 27, 2011	Mar. 08, 2011	Feb. 11, 2011	Dec. 29, 2013	Dec. 30, 2012	Dec. 25, 2011
Class of Stock [Line Items]
Common stock issued for cash (in shares)	20,000,000
Gross proceeds from issuance of common stock	$ 100.0				$ 64.8
Proceeds from the issuance of common stock, net of issuance costs	$ 97.0				$ 61.1	$ 0.0	$ 97.0	$ 61.1
Common stock repurchased (in shares)		2,000,000
Total liquidation preference				$ 5.0
Common stock
Class of Stock [Line Items]
Common stock issued for cash (in shares)					4,900,000
Purchase price (in dollars per share)	$ 5.00	$ 5.45			$ 13.25
Number of common shares issued upon conversion of preferred stock				100,000
Series B Convertible Preferred Stock
Class of Stock [Line Items]
Number of shares of preferred stock converted				10,000
Integral
Class of Stock [Line Items]
Common stock issued for acquisitions (in shares)			10,400,000

Stockholders' Equity - Stock Option Plans and Restricted Stock Units Plans (Details) - USD ($) shares in Thousands, $ in Millions			12 Months Ended
	Dec. 15, 2010	Dec. 24, 2008	Dec. 29, 2013	Dec. 30, 2012	Dec. 25, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized stock-based compensation expense related to nonvested options			$ 2.1
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based incentive award vesting period			5 years
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based incentive award vesting period			10 years
Stock Options and Restricted Stock Units [Member] \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based incentive award vesting period			10 years
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense, period for recognition			4 years 2 months 12 days
Stock options \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based incentive award vesting period			6 years
Award term or expiration period			10 years
DFI non-qualified out-of-plan stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award term or expiration period		10 years
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense, period for recognition			3 years 2 months 12 days
Total unrecognized stock-based compensation expense related to nonvested restricted stock units			$ 15.8
Fair value of vested awards			$ 1.7	$ 1.9	$ 0.8
Restricted Stock Units (RSUs) \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of awards granted in period			1 year	1 year	2 years
Restricted Stock Units (RSUs) \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of awards granted in period			10 years	10 years	10 years
2005 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant			362
2011 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant			1,000
Integral's 2008 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant			1,300
Herley's 2010 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant			365
Henry Bros. Electronics Stock Option Plans \| Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award term or expiration period	10 years
Share-based Compensation Arrangement by Share-based Payment Award, Period after Which Awards Become Exercisable	1 year
Henry Bros. Electronics Stock Option Plans \| Stock options \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based incentive award vesting period	3 years
Henry Bros. Electronics Stock Option Plans \| Stock options \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based incentive award vesting period	5 years
Digital Fusion, Inc. Stock Incentive Plans \| Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award term or expiration period		10 years
Digital Fusion, Inc. Stock Incentive Plans \| Non-statutory stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of vested awards		100.00%
Digital Fusion, Inc. Stock Incentive Plans \| Incentive stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based incentive award vesting period		3 years
Award term or expiration period		10 years
Purchase price of common stock as a percent of fair market value		100.00%
Award expiration extension period		2 years
Digital Fusion, Inc. Stock Incentive Plans \| Incentive stock options \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Period after Which Awards Become Exercisable		1 year

Stockholders' Equity - Stock Option Valuation Assumptions (Details) - Stock options	12 Months Ended
	Dec. 29, 2013	Dec. 30, 2012	Dec. 25, 2011
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Expected life		10 years	2 years 2 months 12 days
Risk-free interest rate, lower range	1.10%	1.60%	0.10%
Risk-free interest rate, upper range	2.90%	2.30%	3.40%
Volatility, lower range	56.80%	59.00%	29.30%
Volatility, upper range	61.20%	59.70%	65.30%
Forfeiture rate	10.00%	16.30%	16.30%
Dividend yield	0.00%	0.00%	0.00%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Expected life	6 years 3 months
Maximum
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Expected life	10 years

Stockholders' Equity - Stock Options Roll Forward (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 29, 2013	Dec. 30, 2012
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Options outstanding at beginning of period, Number of Options (in shares)	1,133
Granted, Number of Options (in shares)	1,012
Exercised, Number of Options (in shares)	(7)
Forfeited or expired, Number of Options (in shares)	(417)
Options outstanding at end of period, Number of Options (in shares)	1,721	1,133
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Options outstanding at beginning of period, Weighted-Average Exercise Price per Share (in dollars per share)	$ 27.66
Granted, Weighted-Average Exercise Price per Share (in dollars per share)	5.03
Exercised, Weighted-Average Exercise Price per Share (in dollars per share)	5.05
Forfeited or expired, Weighted-Average Exercise Price per Share (in dollars per share)	32.95
Options outstanding at end of period, Weighted-Average Exercise Price per Share (in dollars per share)	$ 13.16	$ 27.66
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Options outstanding, Weighted Average Remaining Contractual Term	5 years 9 months 18 days	2 years 9 months 18 days
Options outstanding, Aggregate Intrinsic Value	$ 2,179	$ 80
Options exercisable, Number of Options (in shares)	821
Options exercisable, Weighted-Average Exercise Price per Share (in dollars per share)	$ 22.09
Options exercisable, Weighted-Average Remaining Contractual Term	2 years 4 months 24 days
Options exercisable, Aggregate Intrinsic Value	$ 249

Stockholders' Equity - Grants and Exercises Under Option Plans (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 29, 2013	Dec. 30, 2012	Dec. 25, 2011
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Weighted average grant date fair value of options granted (in dollars per share)	$ 2.86	$ 3.56	$ 2.38
Total intrinsic value of options exercised	$ 0	$ 0	$ 1,832

Stockholders' Equity - Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs) shares in Thousands	12 Months Ended
	Dec. 29, 2013 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Nonvested balance at beginning of period (in shares) \| shares	3,670
Grants (in shares) \| shares	53
Vested (in shares) \| shares	(132)
Forfeitures (in shares) \| shares	(243)
Vested but not released (in shares) \| shares	(3)
Nonvested balance at end of period (in shares) \| shares	3,345
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Nonvested balance at beginning of period, Weighted-Average Grant Date Fair Value (in dollars per share) \| $ / shares	$ 7.53
Grants, Weighted-Average Grant Date Fair Value (in dollars per share) \| $ / shares	12.69
Vested, Weighted-Average Grant Date Fair Value (in dollars per share) \| $ / shares	12.89
Forfeitures, Weighted-Average Grant Date Fair Value (in dollars per share) \| $ / shares	9.34
Vested but not released, Weighted-Average Grant Date Fair Value (in dollars per share) \| $ / shares	12.39
Nonvested balance at end of period, Weighted-Average Grant Date Fair Value (in dollars per share) \| $ / shares	$ 7.26

Stockholders' Equity - Employee Stock Purchase Plan (Details) - $ / shares shares in Thousands	12 Months Ended
	Dec. 29, 2013	Dec. 30, 2012	Dec. 25, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares issued under the plan		781
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized	2,689
Minimum weekly employment threshold to qualify for ESPP	20 hours
Minimum annual employment threshold to qualify for ESPP	5 months
Maximum percentage of employee compensation eligible to purchase shares under ESPP	15.00%
Purchase price of common stock as a percent of fair market value	85.00%
Cumulative number of shares issued under ESPP	1,784
Number of shares available for future issuance	1,924
Average share price of shares issued under the plan		$ 5.19
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Expected life	6 months	6 months	6 months
Risk-free interest rate, lower range	0.10%	0.06%	0.10%
Risk-free interest rate, upper range	0.11%	0.16%	0.19%
Expected volatility, lower range	36.95%	49.70%	28.50%
Expected volatility, upper range	43.70%	65.73%	43.60%
Expected dividend yield	0.00%	0.00%	0.00%
Weighted average grant-date fair value per share (in dollars per share)	$ 1.50	$ 1.93	$ 3.05

Stockholders' Equity - Stockholder Rights Agreement (Details)	Dec. 16, 2004 $ / shares $ / right shares	Dec. 29, 2013 $ / shares	Dec. 30, 2012 $ / shares	May 14, 2012
Class of Warrant or Right [Line Items]
Common stock par value (in dollars per share) \| $ / shares	$ 0.001	$ 0.001	$ 0.001
Number of shares of Series C Preferred Stock that holders of rights have the right to purchase \| shares	0.01
Purchase price per right of Series C Preferred Stock (in dollars per share) \| $ / right	54.00
Expiration period from the Rights Agreement date	10 years
Condition 1
Class of Warrant or Right [Line Items]
Threshold number of business days	10 days
Beneficial ownership percentage	15.00%
Condition 2
Class of Warrant or Right [Line Items]
Threshold number of business days	10 days
Condition 2 \| Oak Parties
Class of Warrant or Right [Line Items]
Beneficial ownership percentage				25.00%

Retirement Plans (Details) - USD ($) $ in Millions	12 Months Ended
Retirement Plans (Details) - USD ($) $ in Millions	Dec. 29, 2013	Dec. 30, 2012	Dec. 25, 2011
Compensation and Retirement Disclosure [Abstract]
Company's contributions to defined-contribution plans	$ 6.0	$ 5.1	$ 7.3

Significant Customers (Details) - USD ($) $ in Millions	12 Months Ended
Significant Customers (Details) - USD ($) $ in Millions	Dec. 29, 2013	Dec. 30, 2012	Dec. 25, 2011
Revenue, Major Customer [Line Items]
Sales to the U.S. Government - amount	$ 100.9	$ 116.2	$ 54.3
U.S. Government \| Kratos Government Solutions
Revenue, Major Customer [Line Items]
Sales to the U.S. Government - amount	$ 606.7	$ 627.8	$ 534.5
Sales to the U.S. Government - percentage of total revenue	64.00%	65.00%	75.00%

Segment Information (Details) $ in Millions		3 Months Ended								12 Months Ended
Segment Information (Details) $ in Millions	Jul. 02, 2013 USD ($)	Dec. 29, 2013 USD ($)	Sep. 29, 2013 USD ($)	Jun. 30, 2013 USD ($)	Mar. 31, 2013 USD ($)	Dec. 30, 2012 USD ($)	Sep. 30, 2012 USD ($)	Jun. 24, 2012 USD ($)	Mar. 25, 2012 USD ($)	Dec. 29, 2013 USD ($) Segment	Dec. 30, 2012 USD ($)	Dec. 25, 2011 USD ($)
Segment Reporting Information [Line Items]
Number of principal business segments \| Segment										2
Segment Reporting Information, Operating Income (Loss) [Abstract]
Service revenues										$ 443.6	$ 450.0	$ 351.0
Product sales										507.0	519.2	362.9
Total revenues		$ 235.7	$ 226.4	$ 235.2	$ 253.3	$ 263.6	$ 276.3	$ 219.8	$ 209.5	950.6	969.2	713.9
Depreciation and amortization										53.4	58.0	48.0
Total operating income (loss) from continuing operations		5.4	$ 6.1	$ 8.9	$ 11.4	(80.3)	14.1	7.4	9.1	31.8	(49.7)	29.5
Revenue from foreign subsidiaries										$ 100.9	$ 116.2	$ 54.3
Revenue from foreign subsidiaries, percentage										11.00%	12.00%	8.00%
Impairment of goodwill and intangible assets										$ 0.0	$ 96.6	$ 0.0
Acquisition expenses (benefits)										(3.8)	(2.7)	12.5
Merger and acquisition related items						(2.7)	$ 0.3	$ 1.5	$ 0.9	(2.0)
Settlement with one of the Company's D&O insurance carriers	$ 3.1
Total assets		1,216.6				1,283.9				1,216.6	1,283.9
Assets of foreign subsidiaries		95.9				90.0				95.9	90.0
Trade names
Segment Reporting Information, Operating Income (Loss) [Abstract]
Intangible assets impairment charge											14.6
Kratos Government Solutions
Segment Reporting Information, Operating Income (Loss) [Abstract]
Service revenues										233.9	264.0	238.8
Product sales										507.0	519.2	362.9
Total revenues										740.9	783.2	601.7
Depreciation and amortization										49.9	54.5	45.7
Total operating income (loss) from continuing operations										26.4	(41.5)	35.4
Impairment of goodwill and intangible assets											83.7
Total assets		1,025.6				1,103.9				1,025.6	1,103.9
Kratos Government Solutions \| Trade names
Segment Reporting Information, Operating Income (Loss) [Abstract]
Intangible assets impairment charge											1.7
Public Safety & Security
Segment Reporting Information, Operating Income (Loss) [Abstract]
Service revenues										209.7	186.0	112.2
Product sales										0.0	0.0	0.0
Total revenues										209.7	186.0	112.2
Depreciation and amortization										3.5	3.5	2.3
Total operating income (loss) from continuing operations										8.3	(2.5)	9.9
Total assets		122.6				106.8				122.6	106.8
Public Safety & Security \| Trade names
Segment Reporting Information, Operating Income (Loss) [Abstract]
Intangible assets impairment charge											12.9
Discontinued operations
Segment Reporting Information, Operating Income (Loss) [Abstract]
Total assets		0.0				7.5				0.0	7.5
Corporate activities
Segment Reporting Information, Operating Income (Loss) [Abstract]
Total operating income (loss) from continuing operations										(2.9)	(5.7)	$ (15.8)
Total assets		$ 68.4				$ 65.7				$ 68.4	$ 65.7

Commitments and Contingencies - Legal and Regulatory Matter (Details)	Jul. 30, 2009 officer
SEC investigation of Integral \| Pending litigation
Loss Contingencies [Line Items]
Number of former officers of Integral against whom the SEC has instituted separate civil actions	3

Commitments and Contingencies - Warranty (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 29, 2013	Dec. 30, 2012	Dec. 29, 2013	Dec. 30, 2012
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]
Balance, at beginning of the period	$ 5.2	$ 3.8
Costs accrued and revenues deferred	1.2	1.8
Warranty liabilities assumed from acquisitions	0.0	0.4
Adjustments to preexisting warranties	(0.9)	(0.7)
Settlements made (in cash or kind) and revenues recognized	(0.1)	(0.1)
Balance, at end of period	$ 5.2	$ 3.8	$ 5.4	$ 5.2
Less: Non-Current portion			0.3	0.3
Current warranty liability			$ 5.1	$ 4.9
Minimum
Warranty Coverage Period [Line Items]
Warranty coverage period	1 year
Maximum
Warranty Coverage Period [Line Items]
Warranty coverage period	10 years
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

Commitments and Contingencies - Self-Insured Health and Workers' Compensation Plans (Details)	12 Months Ended
	Dec. 29, 2013 USD ($) claim	Dec. 30, 2012 USD ($) claim	Dec. 25, 2011 claim
Self-insured health plan
Loss Contingencies [Line Items]
Accrual for self-insurance programs	$ 200,000	$ 100,000
Number of claims that exceeded annual coverage limits \| claim	0	0	8
Self-insured health plan \| Minimum
Loss Contingencies [Line Items]
Annual coverage limit	$ 50,000
Self-insured health plan \| Maximum
Loss Contingencies [Line Items]
Annual coverage limit	85,000
Self-insured workers' compensation plan
Loss Contingencies [Line Items]
Accrual for self-insurance programs	$ 200,000	$ 200,000
Number of claims that exceeded annual coverage limits \| claim	0	0	0
Self-insured workers' compensation plan \| Minimum
Loss Contingencies [Line Items]
Annual coverage limit	$ 250,000
Self-insured workers' compensation plan \| Maximum
Loss Contingencies [Line Items]
Annual coverage limit	$ 350,000

Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 29, 2013	Sep. 29, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 30, 2012	Sep. 30, 2012	Jun. 24, 2012	Mar. 25, 2012	Dec. 29, 2013	Dec. 30, 2012	Dec. 25, 2011
Quarterly Financial Information Disclosure [Abstract]
Revenues	$ 235.7	$ 226.4	$ 235.2	$ 253.3	$ 263.6	$ 276.3	$ 219.8	$ 209.5	$ 950.6	$ 969.2	$ 713.9
Gross profit	61.5	52.3	60.4	65.8	68.0	74.1	57.7	57.4	240.0	257.2	191.2
Total operating income (loss) from continuing operations	5.4	6.1	8.9	11.4	(80.3)	14.1	7.4	9.1	31.8	(49.7)	29.5
Provision (benefit) for income taxes from continuing operations	(2.9)	0.2	(0.1)	2.8	(5.4)	1.3	6.6	(4.1)	0.0	(1.6)	1.9
Net income (loss)	$ (7.4)	$ (9.9)	$ (9.6)	$ (10.3)	$ (90.0)	$ (4.2)	$ (17.2)	$ (3.0)	$ (37.2)	$ (114.4)	$ (24.2)
Basic and diluted loss per common share:
Basic and diluted (in dollars per share)	$ (0.12)	$ (0.17)	$ (0.17)	$ (0.18)	$ (1.59)	$ (0.07)	$ (0.41)	$ (0.09)	$ (0.65)	$ (2.44)	$ (0.88)
Quarterly Financial Data
Impairment of goodwill and intangible assets									$ 0.0	$ 96.6	$ 0.0
Expense (benefit) related to acquisitions					$ 2.7	$ (0.3)	$ (1.5)	$ (0.9)	2.0
Amortization of purchased intangibles	$ 8.9	$ 9.0	$ 9.0	$ 9.3	$ 11.5	$ 13.0	$ 8.9	$ 10.5	36.2	43.9	38.0
Reduction in excess facility accrual		4.7							$ 4.7	$ (1.8)	$ 0.0
Expense related to workforce reductions		$ 2.0

Condensed Consolidating Financial Statements - Balance Sheet (Details) - USD ($)	Dec. 29, 2013	Dec. 30, 2012	Dec. 25, 2011	Jul. 27, 2011	Mar. 25, 2011	Dec. 26, 2010	May 19, 2010
Condensed Financial Statements, Captions [Line Items]
Principal	$ 629,800,000	$ 630,700,000
Current assets:
Cash and cash equivalents	55,700,000	49,000,000	$ 69,600,000			$ 10,800,000
Accounts receivable, net	265,800,000	271,900,000
Amounts due from affiliated companies	0	0
Inventoried costs	74,600,000	94,300,000
Other current assets	34,200,000	40,200,000
Total current assets	430,300,000	455,400,000
Amounts due from affiliated companies, long-term	0	0
Property, plant and equipment, net	84,800,000	85,600,000
Goodwill	596,400,000	596,400,000
Intangible assets, net	69,900,000	106,100,000
Investment in subsidiaries	0	0
Other assets	35,200,000	40,400,000
Total assets	1,216,600,000	1,283,900,000
Current liabilities:
Accounts payable	61,900,000	83,600,000
Accrued expenses	51,400,000	52,700,000
Accrued compensation	44,900,000	47,800,000
Billings in excess of costs and earnings on uncompleted contracts	52,500,000	43,700,000
Deferred income tax liability	28,400,000	28,900,000
Amounts due to affiliated companies	0	0
Other current liabilities	11,900,000	22,100,000
Total current liabilities	251,000,000	278,800,000
Long-term debt, net of current portion	643,300,000	648,400,000
Deferred tax liability	700,000	0
Amounts due to affiliated companies	0	0
Other long-term liabilities	26,500,000	32,600,000
Total liabilities	920,800,000	959,800,000
Total stockholders' equity	295,800,000	324,100,000	$ 312,600,000			$ 169,900,000
Total liabilities and stockholders' equity	1,216,600,000	1,283,900,000
Parent Company
Current assets:
Cash and cash equivalents	42,700,000	37,800,000
Accounts receivable, net	0	0
Amounts due from affiliated companies	410,200,000	480,200,000
Inventoried costs	0	0
Other current assets	10,700,000	9,100,000
Total current assets	463,600,000	527,100,000
Amounts due from affiliated companies, long-term	0	0
Property, plant and equipment, net	2,100,000	1,300,000
Goodwill	0	0
Intangible assets, net	0	0
Investment in subsidiaries	474,200,000	439,800,000
Other assets	12,900,000	17,600,000
Total assets	952,800,000	985,800,000
Current liabilities:
Accounts payable	2,800,000	2,800,000
Accrued expenses	6,600,000	7,000,000
Accrued compensation	4,000,000	2,900,000
Billings in excess of costs and earnings on uncompleted contracts	0	0
Deferred income tax liability	0	0
Amounts due to affiliated companies	0	0
Other current liabilities	1,300,000	1,100,000
Total current liabilities	14,700,000	13,800,000
Long-term debt, net of current portion	639,500,000	643,600,000
Deferred tax liability		0
Amounts due to affiliated companies	0	0
Other long-term liabilities	2,800,000	4,300,000
Total liabilities	657,000,000	661,700,000
Total stockholders' equity	295,800,000	324,100,000
Total liabilities and stockholders' equity	952,800,000	985,800,000
Guarantors on a Combined Basis
Current assets:
Cash and cash equivalents	(3,000,000)	(4,000,000)
Accounts receivable, net	238,600,000	253,500,000
Amounts due from affiliated companies	0	0
Inventoried costs	59,100,000	75,400,000
Other current assets	19,400,000	28,000,000
Total current assets	314,100,000	352,900,000
Amounts due from affiliated companies, long-term	24,000,000	24,000,000
Property, plant and equipment, net	71,900,000	74,700,000
Goodwill	574,800,000	574,700,000
Intangible assets, net	68,500,000	103,400,000
Investment in subsidiaries	36,700,000	28,800,000
Other assets	23,000,000	22,400,000
Total assets	1,113,000,000	1,180,900,000
Current liabilities:
Accounts payable	54,100,000	75,200,000
Accrued expenses	40,900,000	42,300,000
Accrued compensation	36,900,000	41,800,000
Billings in excess of costs and earnings on uncompleted contracts	45,400,000	40,500,000
Deferred income tax liability	28,400,000	28,900,000
Amounts due to affiliated companies	390,200,000	455,100,000
Other current liabilities	9,500,000	19,100,000
Total current liabilities	605,400,000	702,900,000
Long-term debt, net of current portion	0	0
Deferred tax liability		0
Amounts due to affiliated companies	0	0
Other long-term liabilities	21,400,000	26,200,000
Total liabilities	626,800,000	729,100,000
Total stockholders' equity	486,200,000	451,800,000
Total liabilities and stockholders' equity	1,113,000,000	1,180,900,000
Non-Guarantors on a Combined Basis
Current assets:
Cash and cash equivalents	16,000,000	15,200,000
Accounts receivable, net	27,200,000	18,400,000
Amounts due from affiliated companies	0	0
Inventoried costs	15,500,000	18,900,000
Other current assets	4,100,000	3,100,000
Total current assets	62,800,000	55,600,000
Amounts due from affiliated companies, long-term	0	0
Property, plant and equipment, net	10,800,000	9,600,000
Goodwill	21,600,000	21,700,000
Intangible assets, net	1,400,000	2,700,000
Investment in subsidiaries	0	0
Other assets	(700,000)	400,000
Total assets	95,900,000	90,000,000
Current liabilities:
Accounts payable	5,000,000	5,600,000
Accrued expenses	3,900,000	3,400,000
Accrued compensation	4,000,000	3,100,000
Billings in excess of costs and earnings on uncompleted contracts	7,100,000	3,200,000
Deferred income tax liability	0	0
Amounts due to affiliated companies	20,000,000	25,100,000
Other current liabilities	1,100,000	1,900,000
Total current liabilities	41,100,000	42,300,000
Long-term debt, net of current portion	3,800,000	4,800,000
Deferred tax liability		0
Amounts due to affiliated companies	24,000,000	24,000,000
Other long-term liabilities	2,300,000	2,100,000
Total liabilities	71,200,000	73,200,000
Total stockholders' equity	24,700,000	16,800,000
Total liabilities and stockholders' equity	95,900,000	90,000,000
Eliminations
Current assets:
Cash and cash equivalents	0	0
Accounts receivable, net	0	0
Amounts due from affiliated companies	(410,200,000)	(480,200,000)
Inventoried costs	0	0
Other current assets	0	0
Total current assets	(410,200,000)	(480,200,000)
Amounts due from affiliated companies, long-term	(24,000,000)	(24,000,000)
Property, plant and equipment, net	0	0
Goodwill	0	0
Intangible assets, net	0	0
Investment in subsidiaries	(510,900,000)	(468,600,000)
Other assets	0	0
Total assets	(945,100,000)	(972,800,000)
Current liabilities:
Accounts payable	0	0
Accrued expenses	0	0
Accrued compensation	0	0
Billings in excess of costs and earnings on uncompleted contracts	0	0
Deferred income tax liability	0	0
Amounts due to affiliated companies	(410,200,000)	(480,200,000)
Other current liabilities	0	0
Total current liabilities	(410,200,000)	(480,200,000)
Long-term debt, net of current portion	0	0
Deferred tax liability		0
Amounts due to affiliated companies	(24,000,000)	(24,000,000)
Other long-term liabilities	0	0
Total liabilities	(434,200,000)	(504,200,000)
Total stockholders' equity	(510,900,000)	(468,600,000)
Total liabilities and stockholders' equity	(945,100,000)	$ (972,800,000)
Senior notes \| Senior Notes due June 2017
Condensed Financial Statements, Captions [Line Items]
Principal	$ 625,000,000			$ 115,000,000	$ 285,000,000		$ 225,000,000

Condensed Consolidating Financial Statements - Statement of Operations and Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 29, 2013	Sep. 29, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 30, 2012	Sep. 30, 2012	Jun. 24, 2012	Mar. 25, 2012	Dec. 29, 2013	Dec. 30, 2012	Dec. 25, 2011
Condensed Financial Statements, Captions [Line Items]
Service revenues									$ 443.6	$ 450.0	$ 351.0
Product sales									507.0	519.2	362.9
Total revenues	$ 235.7	$ 226.4	$ 235.2	$ 253.3	$ 263.6	$ 276.3	$ 219.8	$ 209.5	950.6	969.2	713.9
Cost of service revenues									335.2	350.8	260.7
Cost of product sales									375.4	361.2	262.0
Total costs									710.6	712.0	522.7
Gross profit	61.5	52.3	60.4	65.8	68.0	74.1	57.7	57.4	240.0	257.2	191.2
Selling, general and administrative expenses									186.8	192.5	153.1
Impairment of goodwill and intangible assets									0.0	96.6	0.0
Research and development expenses									21.4	17.8	8.6
Operating income (loss) from continuing operations	5.4	6.1	8.9	11.4	(80.3)	14.1	7.4	9.1	31.8	(49.7)	29.5
Other income (expense):
Interest expense, net									(63.7)	(66.1)	(51.1)
Other income, net									0.0	1.3	0.0
Total other expense, net									(63.7)	(64.8)	(51.1)
Loss from continuing operations before income taxes									(31.9)	(114.5)	(21.6)
Provision (benefit) for income taxes from continuing operations	$ (2.9)	$ 0.2	$ (0.1)	$ 2.8	$ (5.4)	$ 1.3	$ 6.6	$ (4.1)	0.0	(1.6)	1.9
Loss from continuing operations									(31.9)	(112.9)	(23.5)
Loss from discontinued operations									(5.3)	(1.5)	(0.7)
Equity in net income (loss) of subsidiaries									0.0	0.0	0.0
Net income (loss)									(37.2)	(114.4)	(24.2)
Comprehensive income (loss)									(37.2)	(115.0)	(24.4)
Parent Company
Condensed Financial Statements, Captions [Line Items]
Service revenues									0.0	0.0	0.0
Product sales									0.0	0.0	0.0
Total revenues									0.0	0.0	0.0
Cost of service revenues									0.0	0.0	0.0
Cost of product sales									0.0	0.0	0.0
Total costs									0.0	0.0	0.0
Gross profit									0.0	0.0	0.0
Selling, general and administrative expenses									5.5	7.4	15.9
Impairment of goodwill and intangible assets									0.0	0.0
Research and development expenses									0.0	0.0	0.0
Operating income (loss) from continuing operations									(5.5)	(7.4)	(15.9)
Other income (expense):
Interest expense, net									(65.6)	(65.9)	(50.8)
Other income, net									0.0	0.3	0.3
Total other expense, net									(65.6)	(65.6)	(50.5)
Loss from continuing operations before income taxes									(71.1)	(73.0)	(66.4)
Provision (benefit) for income taxes from continuing operations									0.6	20.8	0.0
Loss from continuing operations									(71.7)	(93.8)	(66.4)
Loss from discontinued operations									0.1	(0.1)	0.0
Equity in net income (loss) of subsidiaries									34.4	(20.5)	42.2
Net income (loss)									(37.2)	(114.4)	(24.2)
Comprehensive income (loss)									(37.2)	(115.0)	(24.4)
Guarantors on a Combined Basis
Condensed Financial Statements, Captions [Line Items]
Service revenues									438.2	448.5	349.3
Product sales									448.6	470.0	327.4
Total revenues									886.8	918.5	676.7
Cost of service revenues									331.3	350.0	259.2
Cost of product sales									338.9	333.8	242.5
Total costs									670.2	683.8	501.7
Gross profit									216.6	234.7	175.0
Selling, general and administrative expenses									167.2	171.2	122.3
Impairment of goodwill and intangible assets									0.0	96.6
Research and development expenses									20.2	16.9	7.9
Operating income (loss) from continuing operations									29.2	(50.0)	44.8
Other income (expense):
Interest expense, net									2.3	0.3	0.1
Other income, net									(0.3)	0.1	0.4
Total other expense, net									2.0	0.4	0.5
Loss from continuing operations before income taxes									31.2	(49.6)	45.3
Provision (benefit) for income taxes from continuing operations									(0.7)	(22.8)	3.0
Loss from continuing operations									31.9	(26.8)	42.3
Loss from discontinued operations									(5.4)	(2.2)	(0.8)
Equity in net income (loss) of subsidiaries									7.9	8.3	0.5
Net income (loss)									34.4	(20.7)	42.0
Comprehensive income (loss)									34.4	20.9	41.7
Non-Guarantors on a Combined Basis
Condensed Financial Statements, Captions [Line Items]
Service revenues									5.4	1.5	1.7
Product sales									75.3	64.5	46.9
Total revenues									80.7	66.0	48.6
Cost of service revenues									3.9	0.8	1.5
Cost of product sales									53.4	42.7	30.9
Total costs									57.3	43.5	32.4
Gross profit									23.4	22.5	16.2
Selling, general and administrative expenses									14.1	13.9	14.9
Impairment of goodwill and intangible assets									0.0	0.0
Research and development expenses									1.2	0.9	0.7
Operating income (loss) from continuing operations									8.1	7.7	0.6
Other income (expense):
Interest expense, net									(0.4)	(0.5)	(0.4)
Other income, net									0.3	0.9	(0.7)
Total other expense, net									(0.1)	0.4	(1.1)
Loss from continuing operations before income taxes									8.0	8.1	(0.5)
Provision (benefit) for income taxes from continuing operations									0.1	0.4	(1.1)
Loss from continuing operations									7.9	7.7	0.6
Loss from discontinued operations									0.0	0.8	0.1
Equity in net income (loss) of subsidiaries									0.0	0.0	0.0
Net income (loss)									7.9	8.5	0.7
Comprehensive income (loss)									7.9	9.4	0.8
Eliminations
Condensed Financial Statements, Captions [Line Items]
Service revenues									0.0	0.0	0.0
Product sales									(16.9)	(15.3)	(11.4)
Total revenues									(16.9)	(15.3)	(11.4)
Cost of service revenues									0.0	0.0	0.0
Cost of product sales									(16.9)	(15.3)	(11.4)
Total costs									(16.9)	(15.3)	(11.4)
Gross profit									0.0	0.0	0.0
Selling, general and administrative expenses									0.0	0.0	0.0
Impairment of goodwill and intangible assets									0.0	0.0
Research and development expenses									0.0	0.0	0.0
Operating income (loss) from continuing operations									0.0	0.0	0.0
Other income (expense):
Interest expense, net									0.0	0.0	0.0
Other income, net									0.0	0.0	0.0
Total other expense, net									0.0	0.0	0.0
Loss from continuing operations before income taxes									0.0	0.0	0.0
Provision (benefit) for income taxes from continuing operations									0.0	0.0	0.0
Loss from continuing operations									0.0	0.0	0.0
Loss from discontinued operations									0.0	0.0	0.0
Equity in net income (loss) of subsidiaries									(42.3)	12.2	(42.7)
Net income (loss)									(42.3)	12.2	(42.7)
Comprehensive income (loss)									$ (42.3)	$ 11.5	$ (42.5)

Condensed Consolidating Financial Statements - Statement of Cash Flows (Details) - USD ($) $ in Millions			12 Months Ended
	May 14, 2012	Feb. 11, 2011	Dec. 29, 2013	Dec. 30, 2012	Dec. 25, 2011
Condensed Financial Statements, Captions [Line Items]
Net cash provided by (used in) operating activities			$ 22.6	$ 52.3	$ 5.2
Investing activities:
Cash paid for acquisitions, net of cash acquired			2.2	(149.4)	(391.1)
Decrease in restricted cash			0.4	0.6	3.0
Proceeds from the sale of discontinued operations			1.3	0.3	0.0
Investment in affiliated companies			0.0	0.0	0.0
Capital expenditures			(16.6)	(16.6)	(7.5)
Other, net				0.3
Net cash used in investing activities from continuing operations			(12.7)	(165.1)	(395.6)
Financing activities:
Proceeds from the issuance of common stock	$ 97.0	$ 61.1	0.0	97.0	61.1
Proceeds from the issuance of long-term debt			0.0	0.0	425.7
Cash paid for contingent acquisition consideration			(2.1)	(2.5)	0.0
Debt issuance costs paid			0.0	(1.2)	(22.1)
Purchase of treasury stock			0.0	0.0	(10.9)
Repayment of debt			(1.0)	(1.5)	(3.4)
Purchase of ESPP shares			1.1
Financing from affiliated companies			0.0	0.0	0.0
Other, net			0.0	(3.4)	2.0
Net cash provided by (used in) financing activities from continuing operations			(2.0)	90.9	452.4
Net cash flows of continuing operations			7.9	(21.9)	62.0
Net operating cash flows of discontinued operations			(1.3)	1.3	(2.7)
Effect of exchange rate changes on cash and cash equivalents			0.1	0.0	(0.5)
Net increase (decrease) in cash and cash equivalents			6.7	(20.6)	58.8
Parent Company
Condensed Financial Statements, Captions [Line Items]
Net cash provided by (used in) operating activities			(65.9)	(98.2)	(55.1)
Investing activities:
Cash paid for acquisitions, net of cash acquired			0.0	2.3	(421.0)
Decrease in restricted cash			0.0	0.0	1.4
Proceeds from the sale of discontinued operations			0.0
Investment in affiliated companies			0.0	(10.8)	0.0
Capital expenditures			(1.4)	(0.5)	(0.2)
Other, net				0.0
Net cash used in investing activities from continuing operations			(1.4)	(9.0)	(419.8)
Financing activities:
Proceeds from the issuance of common stock				97.0	61.1
Proceeds from the issuance of long-term debt					425.7
Cash paid for contingent acquisition consideration			0.0
Debt issuance costs paid				(1.2)	(22.1)
Purchase of treasury stock					(10.9)
Repayment of debt			0.0	0.0	0.0
Purchase of ESPP shares			1.1
Financing from affiliated companies			71.1	0.0	63.6
Other, net			0.0	(3.4)	2.0
Net cash provided by (used in) financing activities from continuing operations			72.2	92.4	519.4
Net cash flows of continuing operations			4.9	(14.8)	44.5
Net operating cash flows of discontinued operations			0.0	0.0	0.0
Effect of exchange rate changes on cash and cash equivalents			0.0	0.0	0.0
Net increase (decrease) in cash and cash equivalents			4.9	(14.8)	44.5
Guarantors on a Combined Basis
Condensed Financial Statements, Captions [Line Items]
Net cash provided by (used in) operating activities			87.5	144.5	60.5
Investing activities:
Cash paid for acquisitions, net of cash acquired			2.2	(151.7)	18.0
Decrease in restricted cash			0.4	0.6	1.6
Proceeds from the sale of discontinued operations			1.3
Investment in affiliated companies			(74.8)	0.0	(68.6)
Capital expenditures			(12.3)	(14.2)	(6.3)
Other, net				0.3
Net cash used in investing activities from continuing operations			(83.2)	(165.0)	(55.3)
Financing activities:
Proceeds from the issuance of common stock				0.0	0.0
Proceeds from the issuance of long-term debt					0.0
Cash paid for contingent acquisition consideration			(2.1)
Debt issuance costs paid				0.0	0.0
Purchase of treasury stock					0.0
Repayment of debt			0.0	(0.5)	(2.6)
Purchase of ESPP shares			0.0
Financing from affiliated companies			0.0	12.8	0.0
Other, net			0.0	0.0	0.0
Net cash provided by (used in) financing activities from continuing operations			(2.1)	12.3	(2.6)
Net cash flows of continuing operations			2.2	(8.2)	2.6
Net operating cash flows of discontinued operations			(1.3)	1.3	(2.2)
Effect of exchange rate changes on cash and cash equivalents			0.0	0.0	(0.3)
Net increase (decrease) in cash and cash equivalents			0.9	(6.9)	0.1
Non-Guarantors on a Combined Basis
Condensed Financial Statements, Captions [Line Items]
Net cash provided by (used in) operating activities			1.0	6.0	(0.2)
Investing activities:
Cash paid for acquisitions, net of cash acquired			0.0	0.0	11.9
Decrease in restricted cash			0.0	0.0	0.0
Proceeds from the sale of discontinued operations			0.0
Investment in affiliated companies			0.0	(2.0)	0.0
Capital expenditures			(2.9)	(1.9)	(1.0)
Other, net				0.0
Net cash used in investing activities from continuing operations			(2.9)	(3.9)	10.9
Financing activities:
Proceeds from the issuance of common stock				0.0	0.0
Proceeds from the issuance of long-term debt					0.0
Cash paid for contingent acquisition consideration			0.0
Debt issuance costs paid				0.0	0.0
Purchase of treasury stock					0.0
Repayment of debt			(1.0)	(1.0)	(0.8)
Purchase of ESPP shares			0.0
Financing from affiliated companies			3.7	0.0	5.0
Other, net			0.0	0.0	0.0
Net cash provided by (used in) financing activities from continuing operations			2.7	(1.0)	4.2
Net cash flows of continuing operations			0.8	1.1	14.9
Net operating cash flows of discontinued operations			0.0	0.0	(0.5)
Effect of exchange rate changes on cash and cash equivalents			0.1	0.0	(0.2)
Net increase (decrease) in cash and cash equivalents			0.9	1.1	14.2
Eliminations
Condensed Financial Statements, Captions [Line Items]
Net cash provided by (used in) operating activities			0.0	0.0	0.0
Investing activities:
Cash paid for acquisitions, net of cash acquired			0.0	0.0	0.0
Decrease in restricted cash			0.0	0.0	0.0
Proceeds from the sale of discontinued operations			0.0
Investment in affiliated companies			74.8	12.8	68.6
Capital expenditures			0.0	0.0	0.0
Other, net				0.0
Net cash used in investing activities from continuing operations			74.8	12.8	68.6
Financing activities:
Proceeds from the issuance of common stock				0.0	0.0
Proceeds from the issuance of long-term debt					0.0
Cash paid for contingent acquisition consideration			0.0
Debt issuance costs paid				0.0	0.0
Purchase of treasury stock					0.0
Repayment of debt			0.0	0.0	0.0
Purchase of ESPP shares			0.0
Financing from affiliated companies			(74.8)	(12.8)	(68.6)
Other, net			0.0	0.0	0.0
Net cash provided by (used in) financing activities from continuing operations			(74.8)	(12.8)	(68.6)
Net cash flows of continuing operations			0.0	0.0	0.0
Net operating cash flows of discontinued operations			0.0	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	$ 0.0

Label	Element	Value
Public Safety and Security [Member]
Goodwill	us-gaap_Goodwill	$ 35,600,000
Kratos Government Solutions [Member]
Goodwill	us-gaap_Goodwill	$ 560,800,000