View Filing Data

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 26, 2016	Jul. 29, 2016
Document And Entity Information
Entity Registrant Name	KRATOS DEFENSE & SECURITY SOLUTIONS, INC.
Entity Central Index Key	0001069258
Current Fiscal Year End Date	--12-25
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 26, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		60,435,980

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 26, 2016	Dec. 27, 2015
Current assets:
Cash and cash equivalents	$ 17.6	$ 28.5
Restricted cash	0.7	0.7
Accounts receivable, net	211.0	206.8
Inventoried costs	49.9	55.6
Prepaid expenses	11.5	10.6
Other current assets	11.4	18.2
Total current assets	302.1	320.4
Property, plant and equipment, net	51.2	56.2
Goodwill	483.4	483.4
Intangible assets, net	29.5	36.5
Other assets	8.0	6.8
Total assets	874.2	903.3
Current liabilities:
Accounts payable	47.9	48.3
Accrued expenses	31.0	33.1
Accrued compensation	34.2	36.8
Accrued interest	3.8	3.9
Billings in excess of costs and earnings on uncompleted contracts	43.2	42.3
Other current liabilities	5.6	6.1
Current liabilities of discontinued operations	1.9	1.9
Total current liabilities	167.6	172.4
Long-term debt, net of current portion	444.7	444.1
Other long-term liabilities	32.5	28.5
Non-current liabilities of discontinued operations	3.8	4.1
Total liabilities	648.6	649.1
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.001 par value, 5,000,000 shares authorized, 0 shares outstanding at June 26, 2016 and December 27, 2015	0.0	0.0
Common stock, $0.001 par value, 195,000,000 shares authorized; 59,675,841 and 59,139,651 shares issued and outstanding at June 26, 2016 and December 27, 2015, respectively	0.0	0.0
Additional paid-in capital	877.3	873.2
Accumulated other comprehensive loss	(1.5)	(1.4)
Accumulated deficit	(650.2)	(617.6)
Total stockholders’ equity	225.6	254.2
Total liabilities and stockholders’ equity	$ 874.2	$ 903.3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 26, 2016	Dec. 27, 2015
Preferred Stock:
Par value (in dollars per share)	$ 0.001	$ 0.001
Shares authorized (in shares)	5,000,000	5,000,000
Shares outstanding (in shares)	0	0
Common Stock:
Par value (in dollars per share)	$ 0.001	$ 0.001
Shares authorized (in shares)	195,000,000	195,000,000
Shares issued (in shares)	59,675,841	59,139,651
Shares outstanding (in shares)	59,675,841	59,139,651

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 26, 2016	Jun. 28, 2015	Jun. 26, 2016	Jun. 28, 2015
Income Statement [Abstract]
Service revenues	$ 88.2	$ 88.8	$ 170.8	$ 176.1
Product sales	80.0	71.7	150.4	141.3
Total revenues	168.2	160.5	321.2	317.4
Cost of service revenues	64.4	67.1	124.7	133.1
Cost of product sales	58.6	52.5	115.4	105.1
Total costs	123.0	119.6	240.1	238.2
Gross profit	45.2	40.9	81.1	79.2
Selling, general and administrative expenses	36.4	40.3	74.1	77.7
Research and development expenses	4.0	4.3	6.9	8.2
Unused office space, restructuring expenses, and other	4.8	0.0	10.3	0.9
Operating loss from continuing operations	0.0	(3.7)	(10.2)	(7.6)
Other income (expense):
Interest expense, net	(8.7)	(8.9)	(17.4)	(17.7)
Other income (expense), net	0.2	(1.0)	0.5	(0.9)
Total other expense, net	(8.5)	(9.9)	(16.9)	(18.6)
Loss from continuing operations before income taxes	(8.5)	(13.6)	(27.1)	(26.2)
Provision for income taxes from continuing operations	1.8	2.3	5.4	4.2
Loss from continuing operations	(10.3)	(15.9)	(32.5)	(30.4)
Discontinued operations
Loss from operations of discontinued component	(0.1)	(0.7)	(0.1)	(2.1)
Income tax benefit	0.0	1.6	0.0	1.2
Income (loss) from discontinued operations	(0.1)	0.9	(0.1)	(0.9)
Net loss	$ (10.4)	$ (15.0)	$ (32.6)	$ (31.3)
Basic and diluted loss per common share:
Loss from continuing operations (in dollars per share)	$ (0.17)	$ (0.27)	$ (0.54)	$ (0.52)
Income (loss) from discontinued operations (in dollars per share)	0.00	0.02	(0.01)	(0.02)
Net loss per common share (in dollars per share)	$ (0.17)	$ (0.25)	$ (0.55)	$ (0.54)
Weighted average common shares outstanding:
Basic and diluted weighted average common shares outstanding (in shares)	59.8	58.4	59.7	58.3
Comprehensive Loss
Net loss	$ (10.4)	$ (15.0)	$ (32.6)	$ (31.3)
Change in cumulative translation adjustment	(0.1)	0.3	(0.1)	0.1
Comprehensive loss	$ (10.5)	$ (14.7)	$ (32.7)	$ (31.2)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 26, 2016	Jun. 28, 2015
Operating activities:
Net loss	$ (32.6)	$ (31.3)
Loss from discontinued operations	0.1	0.9
Loss from continuing operations	(32.5)	(30.4)
Adjustments to reconcile loss from continuing operations to net cash used in operating activities from continuing operations:
Depreciation and amortization	11.7	13.6
Stock-based compensation	3.1	3.9
Deferred income taxes	2.0	3.6
Amortization of deferred financing costs	0.8	1.0
Amortization of discount on Senior Secured Notes	0.4	0.6
Provision for doubtful accounts	0.2	0.6
Litigation related charges	1.7	0.0
Provision for non-cash restructuring charges	7.7	0.0
Changes in assets and liabilities, net of acquisitions:
Accounts receivable	(6.2)	12.4
Inventoried costs	(3.2)	(7.7)
Prepaid expenses and other assets	0.6	(3.7)
Accounts payable	(1.3)	1.2
Accrued compensation	(2.7)	(7.1)
Accrued expenses	(2.0)	(4.1)
Advance payments received on contracts	5.9	5.6
Accrued interest	0.0	0.0
Billings in excess of costs and earnings on uncompleted contracts	0.9	0.3
Income tax receivable and payable	0.1	(2.6)
Other liabilities	0.4	(2.3)
Net cash used in operating activities from continuing operations	(12.4)	(15.1)
Investing activities:
Change in restricted cash	0.0	4.7
Capital expenditures	(3.5)	(5.2)
Proceeds from sale of assets	0.0	0.9
Net cash provided by (used in) investing activities from continuing operations	(3.5)	0.4
Financing activities:
Repayment of debt	(0.5)	(0.5)
Proceeds from exercise of restricted stock units, employee stock options, and employee stock purchase plan	1.0	1.6
Proceeds from exercise of restricted stock units, employee stock options, and employee stock purchase plan	0.0	(0.7)
Net cash provided by financing activities from continuing operations	0.5	0.4
Net cash flows of continuing operations	(15.4)	(14.3)
Net operating cash flows of discontinued operations	0.1	3.5
Net investing cash flows of discontinued operations	4.5	(0.5)
Effect of exchange rate changes on cash and cash equivalents	(0.1)	0.0
Net decrease in cash and cash equivalents	(10.9)	(11.3)
Cash and cash equivalents at beginning of period	28.5	33.5
Cash and cash equivalents at end of period	$ 17.6	$ 22.2

Summary of Significant Accounting Policies

6 Months Ended

Jun. 26, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of Significant Accounting Policies

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


(a)	Basis of Presentation

The information as of June 26, 2016 and for the three and six months ended June 26, 2016 and June 28, 2015 is unaudited. The condensed consolidated balance sheet as of December 27, 2015 was derived from the Company’s audited consolidated financial statements at that date. In the opinion of management, these unaudited condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the interim periods presented. The results have been prepared in accordance with the instructions to Form 10-Q and do not necessarily include all information and footnotes necessary for presentation in accordance with accounting principles generally accepted in the U.S. (“GAAP”). These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the related notes included in the Company’s audited annual consolidated financial statements for the fiscal year ended December 27, 2015, included in the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 11, 2016 (the “Form 10-K”). Interim operating results are not necessarily indicative of operating results expected in subsequent periods or for the year as a whole.

As discussed in Note 2 - Discontinued Operations, the amounts in these condensed consolidated financial statements reflect the August 21, 2015 disposition of the Company’s 100% owned subsidiary Herley Industries, Inc. (“Herley”) and certain of Herley’s subsidiaries, including Herley-CTI, Inc., EW Simulation Technology, Ltd. and Stapor Research, Inc. (collectively, the “Herley Entities”) as discontinued operations.


(b)	Principles of Consolidation

The condensed consolidated financial statements include the accounts of the Company and its 100% owned subsidiaries for which all inter-company transactions have been eliminated in consolidation.


(c)	Fiscal Year

The Company has a 52/53 week fiscal year ending on the last Sunday of the calendar year, with interim fiscal periods ending on the last Sunday of each calendar quarter. The three and six month periods ended June 26, 2016 and June 28, 2015 consisted of 13-week periods. There are 52 calendar weeks in the fiscal years ending on December 25, 2016 and December 27, 2015.

(d) Accounting Estimates

There have been no significant changes in the Company’s accounting estimates for the three and six months ended June 26, 2016 as compared to the accounting estimates described in the Form 10-K. Subsequent to June 26, 2016, the Company was awarded a competitive, $40.8 million single award, cost-share contract by the Air Force Research Laboratory (“AFRL”) for the Low-Cost Attritable Strike Unmanned Aerial System (“UAS”) Demonstration (“LCASD”). Under the terms of this contract, the Company will receive $7.3 million in government funding, and will be required to invest up to $33.5 million over the approximate 30 month period of performance. The Company is making this investment in order to retain the related intellectual property and system rights. The Company expects to record a loss accrual related to this contract in the third quarter of 2016. The Company is currently in the process of determining the amount of the loss accrual.

(e) Accounting Standards Updates

In May 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-12 (“ASU 2016-12”), Revenue from Contracts with Customers, Narrow-Scope Improvements and Practical Expedients. ASU 2016-12 clarifies the assessment of the collectability criterion, the presentation of sales taxes, the measurement of noncash consideration, the treatment of contract modifications at transition, and the treatment of completed contracts at transition. In April 2016, the FASB issued ASU 2016-10 (“ASU 2016-10”), Revenue from Contracts with Customers, Identifying Performance Obligations and Licensing. ASU 2016-10 provides additional guidance on identifying performance obligations and clarifies the implementation guidance on licensing. In March 2016, the FASB issued ASU 2016-08 (“ASU 2016-08”), Revenue from Contracts with Customers, Principal versus Agent Considerations. ASU 2016-08 clarifies the implementation guidance and illustrations in the new revenue standard. In August 2015, the FASB issued ASU 2015-14 (“ASU 2015-14”), Revenue from Contracts with Customers, Deferral of the Effective Date, that deferred the effective date of ASU 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers. Pursuant to ASU 2015-14, public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within those reporting periods. The FASB issued ASU 2014-09 in May 2014. ASU 2014-09 affects any entity using GAAP that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (e.g., insurance contracts or lease contracts). ASU 2014-09 will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. ASU 2014-09 also supersedes some cost guidance included in FASB Accounting Standards Codification (“ASC”) Subtopic 605-35, Revenue Recognition—Construction-Type and Production-Type Contracts. The guidance permits companies to either apply the requirements retrospectively to all prior periods presented or apply the requirements in the year of adoption, through a cumulative adjustment. The Company has not yet selected a transition method nor has it determined the impact of adoption on its condensed consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09 (“ASU 2016-09”), Compensation — Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 simplifies several aspects of the accounting for employee share-based payments, including accounting for income taxes, forfeitures, statutory tax withholding requirements, and classification on the statement of cash flows. The amendments in this ASU are effective for annual periods beginning after December 15, 2016. Early adoption is permitted, however, the Company does not intend to early adopt this ASU. The Company has not determined the impact of adoption on its condensed consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02 (“ASU 2016-02”), Leases. ASU 2016-02 requires that lessees recognize assets and liabilities for the rights and obligations for leases with a lease term of more than one year. The amendments in this ASU are effective for annual periods ending after December 15, 2018. Early adoption is permitted, however, the Company does not intend to early adopt this ASU. The standard must be applied using a modified retrospective approach. The Company has not determined the impact of adoption on its condensed consolidated financial statements.

In January 2015, the FASB issued ASU 2015-01 (“ASU 2015-01”), Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. ASU 2015-01 eliminates from GAAP the concept of extraordinary items. Subtopic 225-20, Income Statement - Extraordinary and Unusual Items, required that an entity separately classify, present, and disclose extraordinary events and transactions. Presently, an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The Company adopted this standard in the quarter ended March 27, 2016, which did not have a material impact on its condensed consolidated financial statements.

In August 2014, the FASB issued ASU 2014-15 (“ASU 2014-15”), Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. ASU 2014-15 is intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. Under GAAP, financial statements are prepared under the presumption that the reporting organization will continue to operate as a going concern, except in limited circumstances. Financial reporting under this presumption is commonly referred to as the going concern basis of accounting. The going concern basis of accounting is critical to financial reporting because it establishes the fundamental basis for measuring and classifying assets and liabilities. Currently, GAAP lacks guidance about management’s responsibility to evaluate whether there is substantial doubt about the organization’s ability to continue as a going concern or to provide related footnote disclosures. ASU 2014-15 provides guidance to an organization’s management, with principles and definitions that are intended to reduce diversity in the timing and content of disclosures that are commonly provided by organizations today in the financial statement footnotes. The amendments are effective for the first annual period ending after December 15, 2016, and for annual and interim periods thereafter. Early application is permitted for annual or interim reporting periods for which the financial statements have not previously been issued. The Company does not believe that the adoption of this guidance will have a material impact on its condensed consolidated financial statements.

There have been no changes in the Company’s significant accounting policies, other than the adoption of ASU 2015-01, for the three and six months ended June 26, 2016 as compared to the significant accounting policies described in the Form 10-K.


(f)	Fair Value of Financial Instruments

The carrying amounts and the related estimated fair values of the Company’s long-term debt financial instruments not measured at fair value on a recurring basis at June 26, 2016 and December 27, 2015 are presented in Note 8. The carrying value of all other financial instruments, including cash equivalents, accounts receivable, accounts payable, accrued expenses, billings in excess of cost and earnings on uncompleted contracts, income taxes payable and short-term debt, approximated their estimated fair values at June 26, 2016 and December 27, 2015 due to the short-term nature of these instruments.

Discontinued Operations

6 Months Ended

Jun. 26, 2016

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

On August 21, 2015, the Company completed the sale of the U.S. and U.K. operations of its Electronic Products Division to Ultra Electronics Holdings plc (“Ultra”), a public limited company formed under the laws of England and Wales and traded on the London Stock Exchange, and Ultra Electronics Defense Inc. (the “Buyer”), a Delaware corporation ultimately owned by Ultra (the “Transaction”). Pursuant to the terms of that certain Stock Purchase Agreement, dated May 31, 2015, by and among the Company, Ultra and the Buyer (the “Purchase Agreement”), the Company sold to the Buyer all of the issued and outstanding capital stock of its wholly owned subsidiary Herley and the Herley Entities, for $260.0 million in cash and $5.0 million for taxes incurred as part of the Transaction, less a $2.0 million escrow to satisfy any purchase price adjustments, and an estimated working capital adjustment of $8.3 million. The Purchase Agreement also contained certain non-compete and indemnification provisions. Under the Purchase Agreement, the Company entered into an agreement to indemnify the Buyer for any pre-acquisition tax liabilities. As a result of this arrangement, the Company recorded amounts that have historically been classified as unrecognized tax benefits into other long-term liabilities. The Company also agreed to indemnify Ultra for pre-existing environmental conditions for a period of five years from the closing date, with a maximum indemnification payment of $34.0 million. The Company does not believe payments will be required under the environmental indemnification provision, and the assessment of the fair value is immaterial. Under the terms of the Purchase Agreement, a joint 338(h)(10) election has been made for income tax purposes, providing a “step up” in tax basis to Ultra. The Company incurred approximately $11.5 million in transaction-related costs. The gain on sale of $80.8 million is subject to changes in the indemnification obligations. In accordance with ASC 360-10-45-9, Property, Plant, and Equipment (Topic 360) and ASC 205-20-45-3 Presentation of Financial Statements (Topic 205), the Herley Entities were classified as discontinued operations in the accompanying condensed consolidated financial statements for all periods presented.

Immediately prior to the closing of the Transaction, the outstanding shares of the capital stock of (i) General Microwave Corporation, a New York corporation, and its direct and indirect wholly owned subsidiaries General Microwave Israel Corporation, a Delaware corporation, General Microwave Israel (1987) Ltd., an Israeli company, and Herley GMI Eyal Ltd., an Israeli company, (ii) MSI Acquisition Corp., a Delaware corporation and its wholly owned subsidiary Micro Systems, Inc., a Florida corporation, and (iii) Herley-RSS, Inc., a Delaware corporation, were distributed as a dividend by Herley to the Company and will continue their current operations as wholly owned subsidiaries of the Company.

In November 2015, the Company and Ultra settled the working capital adjustment at $8.1 million, and the net cash position at closing, resulting in a net payment to the Company of $2.7 million. This represented a payment from escrow to the Company of $2.0 million, as well as a payment from Ultra to the Company of $0.7 million, reflecting the difference in the estimated working capital and actual working capital and the net cash position at the close of the Transaction. In January 2016, Ultra reimbursed the Company the $5.0 million maximum for taxes incurred as part of the Transaction.

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



	Three Months Ended						Six Months Ended
	June 26, 2016			June 28, 2015			June 26, 2016			June 28, 2015
Revenue	$	—		$	22.3		$	—		$	47.8
Cost of sales	—			14.6			—			31.5
Selling, general and administrative expenses	0.1			5.5			0.1			11.6
Interest expense, net	—			3.4			—			6.9
Other net expense (income) items that are not major	—			(0.5		)	—			(0.1		)
Loss from discontinued operations before income taxes	(0.1		)	(0.7		)	(0.1		)	(2.1		)
Income tax benefit	—			1.6			—			1.2
Income (loss) from discontinued operations	$	(0.1	)	$	0.9		$	(0.1	)	$	(0.9	)

Depreciation and amortization expense included in selling, general and administrative expenses was $1.6 million and $3.2 million for the three and six months ended June 28, 2015, respectively.

Interest expense is included based on an allocation consistent with the redemption of $175.0 million of the Company’s 7.00% Senior Secured Notes due 2019 (the “Notes”) and the repayment of $41.0 million in outstanding borrowings on that certain Credit and Security Agreement, dated May 14, 2014 (the “Credit Agreement”), by and among the Company, the lenders from time to time party thereto, SunTrust Bank, as Agent (the “Agent”), PNC Bank, National Association, as Joint Lead Arranger and Documentation Agent, and SunTrust Robinson Humphrey, Inc., as Joint Leader Arranger and Sole Book Runner, that was repaid upon the completion of the sale of the Herley Entities in accordance with the terms and conditions of the Indenture (as defined below) and the Credit Agreement, respectively. Refer to Note 8 for further discussion.

The following is a summary of the liabilities of discontinued operations in the accompanying condensed consolidated balance sheets as of June 26, 2016 and December 27, 2015 (in millions):



	June 26, 2016		December 27, 2015
Accrued compensation	$	0.9	$	0.9
Other current liabilities	1.0		1.0
Current liabilities of discontinued operations	$	1.9	$	1.9
Non-current liabilities of discontinued operations	$	3.8	$	4.1

- Definition

The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=51716988&loc=SL51721533-107759

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721665-107760

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5C
-URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721675-107760

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=51719941&loc=SL51724579-110230

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 4A
-URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721663-107760

Reference 6: 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=51719941&loc=d3e2941-110230

Reference 7: 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=51717284&loc=d3e1361-107760

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5B
-URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721673-107760

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721659-107760

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5A
-URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721671-107760

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5D
-URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721677-107760

Reference 12: 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=51717284&loc=d3e1474-107760

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721683-107760

+ Details

Goodwill and Intangible Assets

6 Months Ended

Jun. 26, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets


(a)	Goodwill

The carrying amounts of goodwill as of June 26, 2016 and December 27, 2015 by reportable segment are as follows (in millions):



	Public Safety & Security		Kratos Government Solutions		Unmanned Systems		Total
Gross value	$	53.9	$	565.8	$	111.1	$	730.8
Less accumulated impairment	18.3		215.3		13.8		247.4
Net	$	35.6	$	350.5	$	97.3	$	483.4

(b) Purchased Intangible Assets

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



	As of June 26, 2016							As of December 27, 2015
	Gross Value		Accumulated Amortization			Net Value		Gross Value		Accumulated Amortization			Net Value
Acquired finite-lived intangible assets:
Customer relationships	$	53.7	$	(41.6	)	$	12.1	$	83.7	$	(67.1	)	$	16.6
Contracts and backlog	24.7		(23.2		)	1.5		71.3		(69.4		)	1.9
Developed technology and technical know-how	23.1		(14.5		)	8.6		23.1		(13.3		)	9.8
Trade names	1.4		(1.0		)	0.4		5.3		(4.9		)	0.4
Favorable operating lease	—		—			—		1.8		(0.9		)	0.9
Total finite-lived intangible assets	102.9		(80.3		)	22.6		185.2		(155.6		)	29.6
Indefinite-lived trade names	6.9		—			6.9		6.9		—			6.9
Total intangible assets	$	109.8	$	(80.3	)	$	29.5	$	192.1	$	(155.6	)	$	36.5

Consolidated amortization expense related to intangible assets subject to amortization was $5.3 million and $7.3 million for the six months ended June 26, 2016 and June 28, 2015, respectively.

- Definition

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

+ References + Details

Inventoried Costs

6 Months Ended

Jun. 26, 2016

Inventory Disclosure [Abstract]

Inventoried Costs

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



	June 26, 2016			December 27, 2015
Raw materials	$	29.9		$	32.9
Work in process	23.8			19.2
Finished goods	1.2			2.6
Supplies and other	1.6			1.6
Subtotal inventoried costs	56.5			56.3
Less: Customer advances and progress payments	(6.6		)	(0.7		)
Total inventoried costs	$	49.9		$	55.6

Stockholders' Equity

6 Months Ended

Jun. 26, 2016

Equity [Abstract]

Stockholders' Equity

Stockholders’ Equity

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



	For the Six Months Ended
	June 26, 2016			June 28, 2015
Stockholders’ equity at beginning of period	$	254.2		$	224.3
Comprehensive loss:
Net loss	(32.6		)	(31.3		)
Change in cumulative translation adjustment	(0.1		)	0.1
Total comprehensive loss	(32.7		)	(31.2		)
Stock-based compensation	3.1			4.0
Issuance of common stock for employee stock purchase plan	1.3			1.8
Restricted stock units traded for taxes	(0.3		)	(0.2		)
Stockholders’ equity at end of period	$	225.6		$	198.7

The components of accumulated other comprehensive loss are as follows (in millions):



	June 26, 2016			June 28, 2015
Cumulative translation adjustment	$	(0.7	)	$	(0.6	)
Post-retirement benefit reserve adjustment net of tax expense	(0.8		)	(1.0		)
Total accumulated other comprehensive loss	$	(1.5	)	$	(1.6	)

There were no reclassifications from other comprehensive loss to net income (loss) for the six months ended June 26, 2016 and June 28, 2015.

Common stock issued by the Company for the six months ended June 26, 2016 and June 28, 2015 was as follows (in millions):



	For the Six Months Ended
	June 26, 2016	June 28, 2015
Shares outstanding at beginning of the period	59.1	57.8
Stock issued for employee stock purchase plan, stock options and restricted stock units exercised	0.6	0.6
Shares outstanding at end of the period	59.7	58.4

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(d),(e))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

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

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB TOPIC 4.E)
-URI http://asc.fasb.org/extlink&oid=27010918&loc=d3e74512-122707

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

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

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SAB TOPIC 4.C)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187143-122770

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

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770

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

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

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

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

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

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section E

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section C

+ Details

Net Loss Per Common Share	6 Months Ended
Net Loss Per Common Share	Jun. 26, 2016
Earnings Per Share [Abstract]
Net Loss Per Common Share	Net Loss Per Common Share The Company calculates net loss per share in accordance with FASB ASC Topic 260, Earnings per Share (“Topic 260”). Under Topic 260, basic net loss per common share is calculated by dividing net loss by the weighted-average number of common shares outstanding during the reporting period. Diluted net loss per common share reflects the effects of potentially dilutive securities. Shares from stock options and awards, excluded from the calculation of diluted net loss per share because their inclusion would have been anti-dilutive, were 1.4 million and 1.7 million for the three and six months ended June 26, 2016, respectively, and 1.8 million and 2.3 million for the three and six months ended June 28, 2015, respectively.

Income Taxes

6 Months Ended

Jun. 26, 2016

Income Tax Disclosure [Abstract]

Income Taxes

A reconciliation of the income tax benefit from continuing operations computed by applying the statutory federal income tax rate of 35% to loss from continuing operations before income taxes to the income tax provision for the three and six months ended June 26, 2016 and June 28, 2015 was as follows (in millions):



	For the Three Months Ended						For the Six Months Ended
	June 26, 2016			June 28, 2015			June 26, 2016			June 28, 2015
Income tax benefit at federal statutory rate	$	(3.0	)	$	(4.5	)	$	(9.5	)	$	(9.0	)
State and foreign taxes, net of federal tax benefit and valuation allowance	1.0			0.4			1.4			0.8
Nondeductible expenses and other	0.3			0.5			0.7			0.9
Impact of deferred tax liabilities for indefinite-lived assets	0.8			1.8			2.3			3.3
Increase in reserves for uncertain tax positions	—			—			1.7			0.1
Increase in federal valuation allowance	2.7			4.1			8.8			8.1
Total income tax provision	$	1.8		$	2.3		$	5.4		$	4.2

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 U.S. federal, combined state and certain foreign 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.

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 three-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 were limited to $27.0 million a year for the five years succeeding the March 2010 ownership change and $11.6 million for each year thereafter subject to separate limitations for Acquired NOLs. If the entire limitation amount is not utilized in a year, the excess can be carried forward and utilized in future years.

For the six months ended June 26, 2016, such limitations did not impact the income tax provision, since the amount of taxable income did not exceed the annual limitation amount. However, future equity offerings or acquisitions that have equity as a component of the purchase price could also cause 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 is subject to taxation in the U.S. and various state and 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 the NOL carryforwards. Generally, the Company’s tax years for 2002 and later are subject to examination by various foreign tax authorities.

As of December 27, 2015, the Company had $17.2 million of unrecognized tax benefits that, if recognized, would impact the effective income tax rate, subject to possible offset by an increase in the deferred tax asset valuation allowance. During the six months ended June 26, 2016, unrecognized tax benefits were increased by $1.3 million relating to various current year and prior positions. In connection with the Company’s disposition of the Electronic Products Division, the Company entered into an agreement to indemnify the Buyer for any pre-acquisition tax liabilities. As a result of this arrangement, the Company recorded amounts that have historically been classified as unrecognized tax benefits into other long-term liabilities.

The Company recognizes interest and penalties related to unrecognized tax benefits in its provision for income taxes. For the six months ended June 26, 2016 and June 28, 2015, a $0.7 million expense and $0.1 million expense, respectively, were recorded related to interest and penalties related to unrecognized tax benefits. For the six months ended June 26, 2016 and June 28, 2015, there was no material benefit recorded related to the removal of interest and penalties. The Company believes that no significant amount of the liabilities for uncertain tax positions will expire within twelve months of June 26, 2016.

Debt

6 Months Ended

Jun. 26, 2016

Debt Disclosure [Abstract]

Debt


(a)	Issuance of 7.00% Senior Secured Notes due 2019

In May 2014, the Company refinanced its $625.0 million 10% Senior Secured Notes due in 2017 (the “10% Notes”) with $625.0 million of newly issued Notes, as defined above. The net proceeds from the issuance of the Notes was $618.5 million after an original issue discount of $6.5 million. The Company incurred debt issuance costs of $8.8 million associated with the new Notes. The Company utilized the net proceeds from the Notes, a $41.0 million draw on the Credit Agreement discussed below, as well as cash from operations to extinguish the 10% Notes. The total reacquisition price of the 10% Notes was $661.5 million including a $31.2 million early termination fee, the write-off of $15.5 million of unamortized issue costs, $12.9 million of unamortized premium, along with $5.3 million of additional interest while in escrow, which resulted in a loss on extinguishment of $39.1 million.

The Company completed the offering of the Notes in a private placement conducted pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended (the “Act”). The Notes are governed by the Indenture, dated May 14, 2014 (the “Indenture”), among the Company, certain of the Company’s subsidiaries (the “Subsidiary Guarantors”) and Wilmington Trust, National Association, as Trustee and Collateral Agent. A Subsidiary Guarantor can be released from its Guarantee (as defined in the Indenture) (a) if all of the Capital Stock (as defined in the Indenture) issued by such Subsidiary Guarantor or all or substantially all of the assets of such Subsidiary Guarantor are sold or otherwise disposed of; (b) if the Company designates such Subsidiary Guarantor as an Unrestricted Subsidiary (as defined in the Indenture); (c) if the Company exercises its legal defeasance option or its covenant defeasance option; or (d) upon satisfaction and discharge of the Indenture or payment in full in cash of the principal of, premium, if any, and accrued and unpaid interest.

The holders of the Notes have a first priority lien on substantially all of the Company’s assets and the assets of the Subsidiary 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 junior to the Company’s $110.0 million Credit Agreement.

The Company pays interest on the Notes semi-annually, in arrears, on May 15 and November 15 of each year.

The Notes include customary covenants and events of default as well as a consolidated fixed charge ratio of 2.0:1 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 June 26, 2016, the Company was in compliance with the covenants contained in the Indenture governing the Notes.

The Company may redeem some or all of the Notes at 105.25% of the aggregate principal amount of such Notes through May 15, 2017, 102.625% of the aggregate principal amount of such Notes if redeemed on or after May 16, 2017 but on or before May 15, 2018 and 100% of the aggregate principal amount of such Notes if redeemed on or after May 16, 2018, plus accrued and unpaid interest to the date of redemption.

On October 16, 2014, the Company exchanged the outstanding Notes for an equal amount of new Notes that have been registered under the Act. The terms of the Notes issued in the exchange offer are identical in all material respects to the terms of the Notes, except the Notes issued in the exchange offer have been registered under the Act.

The terms of the Indenture require that the net cash proceeds from asset dispositions be utilized, as applicable, to (i) repay or prepay amounts outstanding under the Company’s Credit Agreement unless such amounts are reinvested in similar collateral, (ii) make an investment in assets that replace the collateral of the Notes or (iii) a combination of both (i) and (ii). To the extent there are any remaining net proceeds from the asset disposition after application of (i), (ii) and (iii), such amounts are required to be utilized to repurchase Notes at par after 360 days following the asset disposition.

Following the sale of the Herley Entities (see Note 2 of these Notes to the Condensed Consolidated Financial Statements), the Company, on August 21, 2015, paid down the $41.0 million outstanding on the Company’s $110.0 million Credit Agreement and on September 22, 2015, repurchased $175.0 million of the Notes at par, in accordance with the Indenture. Related to the $175.0 million repurchase of Notes, the Company wrote off $1.8 million of unamortized issue costs, $1.4 million of unamortized discount, and incurred $0.2 million of legal fees, which resulted in a loss on extinguishment of debt of $3.4 million.

As of June 26, 2016, the Company has reinvested all net proceeds remaining after the repurchase of the $175.0 million of Notes in replacement collateral under the Indenture within the 360 days following the asset disposition.

As of June 26, 2016, there was $450.0 million in Notes outstanding.

(b) Other Indebtedness

$110.0 Million Credit Agreement

On May 14, 2014, the Company replaced its credit facility with KeyBank National Association and entered into the Credit Agreement. The Credit Agreement established a five-year senior secured revolving credit facility in the maximum amount of $110.0 million (subject to a potential increase of the maximum principal amount to $135.0 million, subject to the Agent’s and applicable lenders’ approval as described therein), consisting of a subline for letters of credit in an amount not to exceed $50.0 million, as well as a swingline loan in an aggregate principal amount at any time outstanding not to exceed $10.0 million. The Credit Agreement 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 Credit Agreement 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 Credit Agreement has a second priority lien junior to the lien securing the Notes.

The Credit Agreement contains certain covenants, which include, but are not limited to, restrictions on indebtedness, liens, and investments, and limits on other various payments, as well as a financial covenant relating to a minimum fixed charge coverage ratio of 1.15:1 (as modified per the Third Amendment and the Fourth Amendment, as defined and discussed below). Events of default under the terms of the Credit Agreement include, but are not limited to: failure of the Company to pay any principal of any loans in full when due and payable; failure of the Company to pay any interest on any loan or any fee or other amount payable under the Credit Agreement within three business days after the date when due and payable; failure of the Company or any of its subsidiaries to comply with certain covenants and agreements, subject to applicable grace periods and/or notice requirements; or any representation, warranty or statement made in or pursuant to the Credit Agreement or any related writing or any other material information furnished by the Company or any of its subsidiaries to the Agent or the lenders shall prove to be false or erroneous; and the occurrence of an event or condition having or reasonably likely to have a material adverse effect, which includes a material adverse effect on the business, operations, condition (financial or otherwise) or prospects of the Company or the ability of the Company to repay its obligations. Where an event of default arises from certain bankruptcy events, the commitments shall automatically and immediately terminate and the principal of, and interest then outstanding on, all of the loans shall become immediately due and payable. Subject to certain notice requirements and other conditions, upon the occurrence of an event of default, including the occurrence of a condition having or reasonably likely to have a material adverse effect, commitments may be terminated and the principal of, and interest then outstanding on, all of the loans may become immediately due and payable. At June 26, 2016, no event of default had occurred and the Company believed that events or conditions having a material adverse effect, giving rise to an acceleration of any amounts outstanding under the Credit Agreement, had not occurred and the likelihood of such events or conditions occurring was remote.

Borrowings under the revolving Credit Agreement may take the form of a base rate revolving loan, Eurodollar revolving loan or swingline loan. Base rate revolving loans and swingline loans will bear interest at a rate per annum equal to the sum of the applicable margin from time to time in effect plus the highest of (i) the Agent’s prime lending rate, as in effect at such time, (ii) the federal funds rate, as in effect at such time, plus 0.50% per annum, and (iii) the adjusted London Interbank Offered Rate (“LIBOR”) determined at such time for an interest period of one month, plus 1.00% per annum. Eurodollar revolving loans will bear interest at a rate per annum equal to the sum of the applicable margin from time to time in effect plus the adjusted LIBOR. The applicable margin varies between 1.50% - 2.00% for base rate revolving loans and swingline loans and 2.50% - 3.00% for Eurodollar loans, and is based on several factors including the Company’s then-existing borrowing base and the Lender’s total commitment amount and revolving credit exposure. The calculation of the Company’s borrowing base takes into account several items relating to the Company and its subsidiaries, including amounts due and owing under billed and unbilled accounts receivables, then-held eligible raw materials inventory, work-in-process inventory, and applicable reserves.

On May 31, 2015, the Company entered into a third amendment (the “Third Amendment”) to the Credit Agreement. Under the terms of the Third Amendment, the definitions of certain terms of the Credit Agreement were modified, the disposition of the Herley Entities was approved by the lenders, a minimum $175.0 million repurchase of the Notes by the Company was required and the payment in full of the outstanding balance of the Credit Agreement was required upon consummation of the sale of the Herley Entities. Additionally, the measurement of the fixed charge coverage ratio of 1.15:1 was modified as follows: (i) the fixed charge coverage ratio will not be measured as of the end of any quarterly reporting period ending after June 30, 2015, if on such date (a) there are no outstanding revolving loans or swingline loans and (b) the aggregate amount outstanding under letters of credit is less than or equal to $17.0 million, and (ii) as to any subsequent quarterly reporting period ending after June 30, 2015, and not covered by (i) above, a fixed charge coverage ratio of at least 1.05:1 must be maintained if the percentage of (a) outstanding revolving loans plus the sum of the outstanding swingline loans and outstanding letters of credit that are in excess of $17.0 million, to (b) the revolving credit commitment, minus the Herley Disposition Proceeds Reinvestment Reserve, as defined below, is greater than 0.00% but less than 15.00% or a fixed charge coverage ratio of at least 1.10:1 must be maintained if the aforementioned percentage is equal to or greater than 15.00% but less than 25.00%. In all other instances, a fixed charge coverage ratio of at least 1.15:1 must be maintained. For purposes of computing the fixed charge coverage ratio, the associated reduction in consolidated interest expense in connection with the repurchase of Notes with proceeds from the sale of the Herley Entities shall be deemed to have occurred on the first day of the most recently completed four quarterly reporting periods prior to the sale.

The terms of the Third Amendment also included the establishment of a reserve (the “Herley Disposition Proceeds Reinvestment Reserve”) that reduced the maximum $110.0 million total borrowing base on the Credit Agreement. With the sale of the Herley Entities, a $50.8 million reserve was established based upon the collateral carrying value under the Credit Agreement of the Herley Entities disposed. The reserve and therefore the maximum borrowing base were adjusted monthly for the subsequent cumulative reinvestment in similar collateral assets over a period not to have exceeded 360 days from the date of sale of the Herley Entities. As of June 26, 2016, there was no reserve on the maximum borrowings, resulting from a cumulative reinvestment in similar collateral assets since the sale of the Herley Entities in excess of the $50.8 million reserve established at the date of the sale of the Herley Entities. The Company made investments in assets that replaced the collateral, which has reinstated the maximum facility to the full $110.0 million as of the end of the first quarter of 2016.

On August 19, 2015, the Company entered into a fourth amendment (the “Fourth Amendment”) to the Credit Agreement. Among other things, the Fourth Amendment provides for a modification of the Third Amendment as it relates to when the minimum fixed charge coverage ratio will be measured based upon the Company’s outstanding borrowings. Outstanding borrowings for purposes of computing the applicable minimum fixed charge coverage ratio exclude any letter of credit exposure outstanding of up to $17.0 million plus the amount of letters of credit outstanding for the divested Herley Entities for which a cash deposit has been placed in escrow by the Buyer to cover the amount of such outstanding letters of credit, should the letters of credit be pulled.

As of June 26, 2016, there were no borrowings outstanding on the Credit Agreement and $13.0 million outstanding on letters of credit, resulting in net borrowing base availability of $48.4 million. The Company was in compliance with the financial covenants of the Credit Agreement and its amendments as of June 26, 2016.

Debt Acquired in Acquisition

The Company has a $10.0 million ten-year term loan with a bank in Israel entered into on September 16, 2008 in connection with the acquisition of one of its wholly owned subsidiaries. The balance as of June 26, 2016 was $2.2 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 contained in this loan agreement as of June 26, 2016.

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 June 26, 2016 and December 27, 2015 are presented in the following table:



	As of June 26, 2016						As of December 27, 2015
$ in millions	Principal		Carrying Amount		Fair Value		Principal		Carrying Amount		Fair Value
Total long-term debt including current portion	$	452.2	$	445.7	$	348.6	$	452.7	$	445.1	$	315.2

The fair value of the Company’s long-term debt was based upon actual trading activity (Level 1, Observable inputs -quoted prices in active markets).

As of June 26, 2016, the difference between the carrying amount of $445.7 million and the principal amount of $452.2 million presented in the previous table is the net unamortized original issue discount of $2.9 million and the unamortized debt issuance costs of $3.6 million, which are being accreted to interest expense over the term of the related debt. As of December 27, 2015, the difference between the carrying amount of $445.1 million and the principal amount of $452.7 million presented in the previous table is the net unamortized original issue discount of $3.3 million and the unamortized debt issuance costs of $4.3 million, which are being accreted to interest expense over the term of the related debt.

Segment Information

6 Months Ended

Jun. 26, 2016

Segment Reporting [Abstract]

Segment Information

The Kratos Government Solutions (“KGS”) reportable segment is comprised of an aggregation of KGS operating segments, including our microwave electronic products, satellite communications, modular systems and defense and rocket support operating segments. The Unmanned Systems (“US”) reportable segment consists of our unmanned aerial, ground, seaborne and command, control and communications system business. The KGS and US segments provide products, solutions and services for mission critical national security programs. KGS and US customers primarily include national security related agencies, the U.S. Department of Defense (the “DoD”), intelligence agencies and classified agencies, and to a lesser degree, international government agencies and domestic and international commercial customers. The Public Safety & Security (“PSS”) reportable segment designs, engineers, deploys, operates, integrates into command and control infrastructure, maintains and operates security and surveillance solutions for homeland security, public safety, critical infrastructure, government and commercial customers. PSS customers include those 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 segments based on the nature of the products, solutions 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 (loss) from continuing operations of the reportable business segments is reconciled to the corresponding consolidated amount. The reconciling item “unallocated corporate expense, net” includes costs for certain stock-based compensation programs (including stock-based compensation costs for stock options, employee stock purchase plan 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.

As discussed in Note 2 - Discontinued Operations, the Company began reporting the Herley Entities as discontinued operations effective in the second quarter of fiscal 2015. Prior to the decision to sell the Herley Entities, the Company reported their financial results in the KGS reportable segment.

During the six months ended June 26, 2016, the PSS reportable segment recorded a $1.9 million charge related to a litigation settlement of a contract dispute and the KGS reportable segment recorded a $7.7 million charge as a result of the decision to close one of its manufacturing facilities and exit certain lower margin product business lines.

Revenues, depreciation and amortization, and operating income (loss) generated by the Company’s reportable segments for the three and six month periods ended June 26, 2016 and June 28, 2015 are as follows (in millions):



	Three Months Ended						Six Months Ended
	June 26, 2016			June 28, 2015			June 26, 2016			June 28, 2015
Revenues:
Kratos Government Solutions
Service revenues	$	57.8		$	53.3		$	110.2		$	103.1
Product sales	62.2			53.8			118.4			111.0
Total Kratos Government Solutions	120.0			107.1			228.6			214.1
Public Safety & Security
Service revenues	30.4			35.5			60.6			73.0
Product sales	—			—			—			—
Total Public Safety & Security	30.4			35.5			60.6			73.0
Unmanned Systems
Service revenues	—			—			—			—
Product sales	17.8			17.9			32.0			30.3
Total Unmanned Systems	17.8			17.9			32.0			30.3
Total revenues	$	168.2		$	160.5		$	321.2		$	317.4
Depreciation & amortization:
Kratos Government Solutions	$	3.6		$	5.0		$	7.7		$	10.1
Public Safety & Security	0.2			0.1			0.3			0.3
Unmanned Systems	1.8			1.6			3.7			3.2
Total depreciation and amortization	$	5.6		$	6.7		$	11.7		$	13.6
Operating income (loss) from continuing operations:
Kratos Government Solutions	$	4.5		$	0.2		$	2.7		$	2.6
Public Safety & Security	0.2			0.6			(2.5		)	0.6
Unmanned Systems	(3.0		)	(2.5		)	(7.2		)	(6.7		)
Unallocated corporate expense, net	(1.7		)	(2.0		)	(3.2		)	(4.1		)
Total operating loss from continuing operations	$	—		$	(3.7	)	$	(10.2	)	$	(7.6	)

- 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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9038-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 33
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8971-108599

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8595-108599

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8380-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 35
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8984-108599

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9031-108599

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9054-108599

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8538-108599

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 29
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8864-108599

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8924-108599

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8906-108599

+ Details

Significant Customers	6 Months Ended
Significant Customers	Jun. 26, 2016
Risks and Uncertainties [Abstract]
Significant Customers	Significant Customers Revenue from the U.S. Government, which includes foreign military sales, includes revenue from contracts for which the Company is the prime contractor as well as those for which the Company is a subcontractor and the ultimate customer is the U.S. Government. The KGS and US segments have substantial revenue from the U.S. Government. Sales to the U.S. Government amounted to approximately $102.9 million and $99.2 million, or 61% and 62% of total Kratos revenue, for the three months ended June 26, 2016 and June 28, 2015, respectively, and $198.2 million and $194.2 million, or 62% and 61% of total Kratos revenue, for the six months ended June 26, 2016 and June 28, 2015, respectively.

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 26, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	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 condensed consolidated financial statements. An estimated loss contingency is accrued in the Company’s condensed 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 any such losses, damages or remedies may have on the Company’s condensed consolidated financial statements; and the unique facts and circumstances of the particular matter that may give rise to additional factors. Legal and Regulatory Matters U.S. Government Cost Claims. The Company’s contracts with the DoD 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 recent audits of the Company’s contracts, the DCAA is closely examining and questioning certain of the established and disclosed practices that it had previously audited and accepted. The Company’s personnel regularly scrutinizes costs incurred and allocated to contracts with the U.S. Government for compliance with regulatory standards. On July 28, 2015, the Company received a determination letter from the Defense Contract Management Agency (“DCMA”) regarding what the DCMA believed were certain unallowable costs for one of the Company’s subsidiaries with respect to fiscal year 2007. In April 2016, the Company reached agreement with the DCAA to settle matters related to unallowable costs for this subsidiary for fiscal years 2007 and 2008 for approximately $0.2 million. For those Company subsidiaries and fiscal years which have not yet been audited by the DCAA or for those audits which are in process which have not been completed by the DCAA, the Company cannot reasonably estimate the range of loss, if any, that may result from audits and reviews in which it is currently involved given the inherent difficulty in predicting regulatory action, fines and penalties, if any, and the various remedies and levels of judicial review available to the Company in the event of an adverse finding. As a result, the Company has not recorded any liability related to these matters. 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. The Company intends to defend itself in any such matters and does not currently believe that the outcome of any such matters will have a material adverse impact on the Company’s financial condition, results of operations or cash flows. In the first quarter of fiscal 2016, the Company recorded a charge of $1.9 million related to a litigation settlement of a contract dispute in the PSS segment.

Condensed Consolidating Financial Statements

6 Months Ended

Jun. 26, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidating Financial Statements

The Company has $450.0 million in outstanding Notes (see Note 8). The Notes are guaranteed by 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 Subsidiary Guarantor and the Company. There are no contractual restrictions limiting cash transfers from Subsidiary Guarantors 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. The condensed consolidating financial information below follows the same accounting policies as described in the condensed consolidated financial statements, except for the use of the equity method of accounting to reflect ownership interests in 100% owned subsidiaries, which are eliminated upon consolidation. Also, as discussed in Note 2 - Discontinued Operations, the following condensed consolidating financial statements reflect the disposition of the Herley Entities as discontinued operations.

Subsequent to the issuance of the Company’s condensed consolidated financial statements for the quarter ended June 28, 2015, the Company corrected certain information related to the classification of interest expense allocated to discontinued operations within the income (loss) from discontinued operations and equity in net income (loss) of subsidiaries lines of the unaudited condensed consolidating statement of operations and comprehensive income (loss), and the net cash provided by (used in) operating activities from continuing operations, investment in affiliated companies and the financing from affiliated companies lines within the unaudited condensed consolidating statement of cash flows. The Company determined these classification corrections to be immaterial to the Company’s condensed consolidated financial statements.

Condensed Consolidating Balance Sheet June 26, 2016 (Unaudited) (in millions)

	Parent Company		Subsidiary Guarantors on a Combined Basis			Non-Guarantors on a Combined Basis		Eliminations			Consolidated
Assets
Current Assets:
Cash and cash equivalents	$	12.2	$	(3.1	)	$	8.5	$	—		$	17.6
Accounts receivable, net	—		185.2			25.8		—			211.0
Amounts due from affiliated companies	210.0		—			—		(210.0		)	—
Inventoried costs	—		34.0			15.9		—			49.9
Other current assets	7.2		14.1			2.3		—			23.6
Total current assets	229.4		230.2			52.5		(210.0		)	302.1
Property, plant and equipment, net	2.1		42.1			7.0		—			51.2
Goodwill	—		442.6			40.8		—			483.4
Intangible assets, net	—		29.5			—		—			29.5
Investment in subsidiaries	466.5		63.8			—		(530.3		)	—
Other assets	0.6		7.4			—		—			8.0
Total assets	$	698.6	$	815.6		$	100.3	$	(740.3	)	$	874.2
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	4.2	$	38.3		$	5.4	$	—		$	47.9
Accrued expenses	5.2		26.2			3.4		—			34.8
Accrued compensation	3.7		27.2			3.3		—			34.2
Billings in excess of costs and earnings on uncompleted contracts	—		41.8			1.4		—			43.2
Amounts due to affiliated companies	—		180.8			29.2		(210.0		)	—
Other current liabilities	0.5		4.1			1.0		—			5.6
Current liabilities of discontinued operations	1.8		—			0.1		—			1.9
Total current liabilities	15.4		318.4			43.8		(210.0		)	167.6
Long-term debt, net of current portion	443.5		—			1.2		—			444.7
Other long-term liabilities	10.3		18.7			3.5		—			32.5
Non-current liabilities of discontinued operations	3.8		—			—		—			3.8
Total liabilities	473.0		337.1			48.5		(210.0		)	648.6
Total stockholders’ equity	225.6		478.5			51.8		(530.3		)	225.6
Total liabilities and stockholders’ equity	$	698.6	$	815.6		$	100.3	$	(740.3	)	$	874.2

Condensed Consolidating Balance Sheet December 27, 2015 (Unaudited) (in millions)

	Parent Company		Subsidiary Guarantors on a Combined Basis			Non-Guarantors on a Combined Basis		Eliminations			Consolidated
Assets
Current Assets:
Cash and cash equivalents	$	22.5	$	(4.8	)	$	10.8	$	—		$	28.5
Accounts receivable, net	—		179.0			27.8		—			206.8
Amounts due from affiliated companies	207.8		—			—		(207.8		)	—
Inventoried costs	—		36.9			18.7		—			55.6
Other current assets	16.4		11.7			1.4		—			29.5
Total current assets	246.7		222.8			58.7		(207.8		)	320.4
Property, plant and equipment, net	2.0		47.5			6.7		—			56.2
Goodwill	—		442.6			40.8		—			483.4
Intangible assets, net	—		36.5			—		—			36.5
Investment in subsidiaries	477.8		60.3			—		(538.1		)	—
Other assets	0.7		6.1			—		—			6.8
Total assets	$	727.2	$	815.8		$	106.2	$	(745.9	)	$	903.3
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	4.3	$	36.5		$	7.5	$	—		$	48.3
Accrued expenses	4.7		29.3			3.0		—			37.0
Accrued compensation	4.1		29.2			3.5		—			36.8
Billings in excess of costs and earnings on uncompleted contracts	—		37.1			5.2		—			42.3
Amounts due to affiliated companies	—		175.7			32.1		(207.8		)	—
Other current liabilities	4.3		0.2			1.6		—			6.1
Current liabilities of discontinued operations	1.8		—			0.1		—			1.9
Total current liabilities	19.2		308.0			53.0		(207.8		)	172.4
Long-term debt, net of current portion	442.4		—			1.7		—			444.1
Other long-term liabilities	7.3		18.0			3.2		—			28.5
Non-current liabilities of discontinued operations	4.1		—			—		—			4.1
Total liabilities	473.0		326.0			57.9		(207.8		)	649.1
Total stockholders’ equity	254.2		489.8			48.3		(538.1		)	254.2
Total liabilities and stockholders’ equity	$	727.2	$	815.8		$	106.2	$	(745.9	)	$	903.3

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Three Months Ended June 26, 2016 (Unaudited) (in millions)

	Parent Company			Subsidiary Guarantors on a Combined Basis			Non-Guarantors on a Combined Basis		Eliminations			Consolidated
Service revenues	$	—		$	82.3		$	5.9	$	—		$	88.2
Product sales	—			69.0			12.9		(1.9		)	80.0
Total revenues	—			151.3			18.8		(1.9		)	168.2
Cost of service revenues	—			60.0			4.4		—			64.4
Cost of product sales	—			50.2			10.3		(1.9		)	58.6
Total costs	—			110.2			14.7		(1.9		)	123.0
Gross profit	—			41.1			4.1		—			45.2
Selling, general and administrative expenses	2.5			36.2			2.5		—			41.2
Research and development expenses	—			3.9			0.1		—			4.0
Operating income (loss) from continuing operations	(2.5		)	1.0			1.5		—			—
Other income (expense):
Interest expense, net	(8.7		)	—			—		—			(8.7		)
Other income (expense), net	—			(0.2		)	0.4		—			0.2
Total other income (expense), net	(8.7		)	(0.2		)	0.4		—			(8.5		)
Income (loss) from continuing operations before income taxes	(11.2		)	0.8			1.9		—			(8.5		)
Provision for income taxes from continuing operations	—			1.5			0.3		—			1.8
Income (loss) from continuing operations	(11.2		)	(0.7		)	1.6		—			(10.3		)
Loss from discontinued operations	(0.1		)	—			—		—			(0.1		)
Equity in net income (loss) of subsidiaries	0.9			1.6			—		(2.5		)	—
Net income (loss)	$	(10.4	)	$	0.9		$	1.6	$	(2.5	)	$	(10.4	)
Comprehensive income (loss)	$	(10.5	)	$	0.9		$	1.5	$	(2.4	)	$	(10.5	)

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Three Months Ended June 28, 2015 (Unaudited) (in millions)

	Parent Company			Subsidiary Guarantors on a Combined Basis			Non-Guarantors on a Combined Basis			Eliminations			Consolidated
Service revenues	$	—		$	84.7		$	4.1		$	—		$	88.8
Product sales	—			62.8			12.2			(3.3		)	71.7
Total revenues	—			147.5			16.3			(3.3		)	160.5
Cost of service revenues	—			63.9			3.2			—			67.1
Cost of product sales	—			46.7			9.1			(3.3		)	52.5
Total costs	—			110.6			12.3			(3.3		)	119.6
Gross profit	—			36.9			4.0			—			40.9
Selling, general and administrative expenses	0.7			37.5			2.1			—			40.3
Research and development expenses	—			4.1			0.2			—			4.3
Operating income (loss) from continuing operations	(0.7		)	(4.7		)	1.7			—			(3.7		)
Other income (expense):
Interest expense, net	(8.8		)	(0.1		)	—			—			(8.9		)
Other income (expense), net	(1.4		)	0.8			(0.4		)	—			(1.0		)
Total other income (expense), net	(10.2		)	0.7			(0.4		)	—			(9.9		)
Income (loss) from continuing operations before income taxes	(10.9		)	(4.0		)	1.3			—			(13.6		)
Provision for income taxes from continuing operations	0.2			1.8			0.3			—			2.3
Income (loss) from continuing operations	(11.1		)	(5.8		)	1.0			—			(15.9		)
Income (loss) from discontinued operations	(3.5		)	2.9			1.5			—			0.9
Equity in net income (loss) of subsidiaries	(0.4		)	2.5			—			(2.1		)	—
Net income (loss)	$	(15.0	)	$	(0.4	)	$	2.5		$	(2.1	)	$	(15.0	)
Comprehensive income (loss)	$	(14.7	)	$	(2.2	)	$	2.8		$	(0.6	)	$	(14.7	)




Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Six Months Ended June 26, 2016 (Unaudited) (in millions)
	Parent Company			Subsidiary Guarantors on a Combined Basis			Non-Guarantors on a Combined Basis		Eliminations			Consolidated
Service revenues	$	—		$	159.7		$	11.1	$	—		$	170.8
Product sales	—			128.0			26.0		(3.6		)	150.4
Total revenues	—			287.7			37.1		(3.6		)	321.2
Cost of service revenues	—			116.7			8.0		—			124.7
Cost of product sales	—			98.2			20.8		(3.6		)	115.4
Total costs	—			214.9			28.8		(3.6		)	240.1
Gross profit	—			72.8			8.3		—			81.1
Selling, general and administrative expenses	3.8			75.8			4.8		—			84.4
Research and development expenses	—			6.8			0.1		—			6.9
Operating income (loss) from continuing operations	(3.8		)	(9.8		)	3.4		—			(10.2		)
Other income (expense):
Interest expense, net	(17.3		)	(0.1		)	—		—			(17.4		)
Other income (expense), net	—			(0.2		)	0.7		—			0.5
Total other income (expense), net	(17.3		)	(0.3		)	0.7		—			(16.9		)
Income (loss) from continuing operations before income taxes	(21.1		)	(10.1		)	4.1		—			(27.1		)
Provision for income taxes from continuing operations	0.1			4.7			0.6		—			5.4
Income (loss) from continuing operations	(21.2		)	(14.8		)	3.5		—			(32.5		)
Loss from discontinued operations	(0.1		)	—			—		—			(0.1		)
Equity in net income (loss) of subsidiaries	(11.3		)	3.5			—		7.8			—
Net income (loss)	$	(32.6	)	$	(11.3	)	$	3.5	$	7.8		$	(32.6	)
Comprehensive income (loss)	$	(32.7	)	$	(11.3	)	$	3.4	$	7.9		$	(32.7	)




Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Six Months Ended June 28, 2015 (Unaudited) (in millions)
	Parent Company			Subsidiary Guarantors on a Combined Basis			Non-Guarantors on a Combined Basis		Eliminations			Consolidated
Service revenues	$	—		$	170.2		$	5.9	$	—		$	176.1
Product sales	—			124.5			23.0		(6.2		)	141.3
Total revenues	—			294.7			28.9		(6.2		)	317.4
Cost of service revenues	—			128.6			4.5		—			133.1
Cost of product sales	—			93.8			17.5		(6.2		)	105.1
Total costs	—			222.4			22.0		(6.2		)	238.2
Gross profit	—			72.3			6.9		—			79.2
Selling, general and administrative expenses	5.8			68.5			4.3		—			78.6
Research and development expenses	—			7.9			0.3		—			8.2
Operating income (loss) from continuing operations	(5.8		)	(4.1		)	2.3		—			(7.6		)
Other income (expense):
Interest expense, net	(17.5		)	(0.2		)	—		—			(17.7		)
Other income (expense), net	(1.4		)	(2.2		)	2.7		—			(0.9		)
Total other income (expense), net	(18.9		)	(2.4		)	2.7		—			(18.6		)
Income (loss) from continuing operations before income taxes	(24.7		)	(6.5		)	5.0		—			(26.2		)
Provision for income taxes from continuing operations	0.4			3.6			0.2		—			4.2
Income (loss) from continuing operations	(25.1		)	(10.1		)	4.8		—			(30.4		)
Income (loss) from discontinued operations	(6.8		)	3.6			2.3		—			(0.9		)
Equity in net income (loss) of subsidiaries	0.6			7.1			—		(7.7		)	—
Net income (loss)	$	(31.3	)	$	0.6		$	7.1	$	(7.7	)	$	(31.3	)
Comprehensive income (loss)	$	(31.2	)	$	0.6		$	7.2	$	(7.8	)	$	(31.2	)

Condensed Consolidating Statement of Cash Flows Six Months Ended June 26, 2016 (Unaudited) (in millions)

	Parent Company			Subsidiary Guarantors on a Combined Basis			Non-Guarantors on a Combined Basis			Eliminations			Consolidated
Net cash provided by (used in) operating activities from continuing operations	$	(13.2	)	$	1.5		$	(0.7	)	$	—		$	(12.4	)
Investing activities:
Investment in affiliated companies	(2.3		)	—			—			2.3			—
Capital expenditures	(0.5		)	(2.0		)	(1.0		)	—			(3.5		)
Net cash provided by (used in) investing activities from continuing operations	(2.8		)	(2.0		)	(1.0		)	2.3			(3.5		)
Financing activities:
Repayment of debt	—			—			(0.5		)	—			(0.5		)
Proceeds from the sale of employee stock purchase plan shares	1.0			—			—			—			1.0
Financings from affiliated companies	—			2.3			—			(2.3		)	—
Net cash provided by (used in) financing activities from continuing operations	1.0			2.3			(0.5		)	(2.3		)	0.5
Net cash flows of continuing operations	(15.0		)	1.8			(2.2		)	—			(15.4		)
Net operating cash flows from discontinued operations	0.2			(0.1		)	—			—			0.1
Net investing cash flows from discontinued operations	4.5			—			—			—			4.5
Effect of exchange rate changes on cash and cash equivalents	—			—			(0.1		)	—			(0.1		)
Net increase (decrease) in cash and cash equivalents	$	(10.3	)	$	1.7		$	(2.3	)	$	—		$	(10.9	)

Condensed Consolidating Statement of Cash Flows Six Months Ended June 28, 2015 (Unaudited) (in millions)

	Parent Company			Subsidiary Guarantors on a Combined Basis			Non-Guarantors on a Combined Basis			Eliminations			Consolidated
Net cash provided by (used in) operating activities from continuing operations	$	(26.5	)	$	13.7		$	(2.3	)	$	—		$	(15.1	)
Investing activities:
Investment in affiliated companies	—			(11.9		)	—			11.9			—
Change in restricted cash	—			4.7			—			—			4.7
Capital expenditures	(0.3		)	(4.5		)	(0.4		)	—			(5.2		)
Proceeds from sale of assets	—			0.9			—			—			0.9
Net cash provided by (used in) investing activities from continuing operations	(0.3		)	(10.8		)	(0.4		)	11.9			0.4
Financing activities:
Repayment of debt	—			—			(0.5		)	—			(0.5		)
Proceeds from the sale of employee stock purchase plan shares	1.6			—			—			—			1.6
Cash paid for contingent acquisition consideration	—			(0.7		)	—			—			(0.7		)
Financing from affiliated companies	11.9			—			—			(11.9		)	—
Net cash provided by (used in) financing activities from continuing operations	13.5			(0.7		)	(0.5		)	(11.9		)	0.4
Net cash flows of continuing operations	(13.3		)	2.2			(3.2		)	—			(14.3		)
Net operating cash flows from discontinued operations	—			1.7			1.8			—			3.5
Net investing cash flows from discontinued operations	—			(0.3		)	(0.2		)	—			(0.5		)
Net increase (decrease) in cash and cash equivalents	$	(13.3	)	$	3.6		$	(1.6	)	$	—		$	(11.3	)

Summary of Significant Accounting Policies (Policies)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Jun. 26, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The information as of June 26, 2016 and for the three and six months ended June 26, 2016 and June 28, 2015 is unaudited. The condensed consolidated balance sheet as of December 27, 2015 was derived from the Company’s audited consolidated financial statements at that date. In the opinion of management, these unaudited condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the interim periods presented. The results have been prepared in accordance with the instructions to Form 10-Q and do not necessarily include all information and footnotes necessary for presentation in accordance with accounting principles generally accepted in the U.S. (“GAAP”). These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the related notes included in the Company’s audited annual consolidated financial statements for the fiscal year ended December 27, 2015, included in the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 11, 2016 (the “Form 10-K”). Interim operating results are not necessarily indicative of operating results expected in subsequent periods or for the year as a whole. As discussed in Note 2 - Discontinued Operations, the amounts in these condensed consolidated financial statements reflect the August 21, 2015 disposition of the Company’s 100% owned subsidiary Herley Industries, Inc. (“Herley”) and certain of Herley’s subsidiaries, including Herley-CTI, Inc., EW Simulation Technology, Ltd. and Stapor Research, Inc. (collectively, the “Herley Entities”) as discontinued operations.
Principles of Consolidation	Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its 100% owned subsidiaries for which all inter-company transactions have been eliminated in consolidation.
Fiscal Year	Fiscal Year The Company has a 52/53 week fiscal year ending on the last Sunday of the calendar year, with interim fiscal periods ending on the last Sunday of each calendar quarter. The three and six month periods ended June 26, 2016 and June 28, 2015 consisted of 13-week periods. There are 52 calendar weeks in the fiscal years ending on December 25, 2016 and December 27, 2015.
Accounting Estimates	Accounting Estimates There have been no significant changes in the Company’s accounting estimates for the three and six months ended June 26, 2016 as compared to the accounting estimates described in the Form 10-K. Subsequent to June 26, 2016, the Company was awarded a competitive, $40.8 million single award, cost-share contract by the Air Force Research Laboratory (“AFRL”) for the Low-Cost Attritable Strike Unmanned Aerial System (“UAS”) Demonstration (“LCASD”). Under the terms of this contract, the Company will receive $7.3 million in government funding, and will be required to invest up to $33.5 million over the approximate 30 month period of performance. The Company is making this investment in order to retain the related intellectual property and system rights. The Company expects to record a loss accrual related to this contract in the third quarter of 2016. The Company is currently in the process of determining the amount of the loss accrual.
Accounting Standards Updates	Accounting Standards Updates In May 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-12 (“ASU 2016-12”), Revenue from Contracts with Customers, Narrow-Scope Improvements and Practical Expedients. ASU 2016-12 clarifies the assessment of the collectability criterion, the presentation of sales taxes, the measurement of noncash consideration, the treatment of contract modifications at transition, and the treatment of completed contracts at transition. In April 2016, the FASB issued ASU 2016-10 (“ASU 2016-10”), Revenue from Contracts with Customers, Identifying Performance Obligations and Licensing. ASU 2016-10 provides additional guidance on identifying performance obligations and clarifies the implementation guidance on licensing. In March 2016, the FASB issued ASU 2016-08 (“ASU 2016-08”), Revenue from Contracts with Customers, Principal versus Agent Considerations. ASU 2016-08 clarifies the implementation guidance and illustrations in the new revenue standard. In August 2015, the FASB issued ASU 2015-14 (“ASU 2015-14”), Revenue from Contracts with Customers, Deferral of the Effective Date, that deferred the effective date of ASU 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers. Pursuant to ASU 2015-14, public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within those reporting periods. The FASB issued ASU 2014-09 in May 2014. ASU 2014-09 affects any entity using GAAP that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (e.g., insurance contracts or lease contracts). ASU 2014-09 will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. ASU 2014-09 also supersedes some cost guidance included in FASB Accounting Standards Codification (“ASC”) Subtopic 605-35, Revenue Recognition—Construction-Type and Production-Type Contracts. The guidance permits companies to either apply the requirements retrospectively to all prior periods presented or apply the requirements in the year of adoption, through a cumulative adjustment. The Company has not yet selected a transition method nor has it determined the impact of adoption on its condensed consolidated financial statements. In March 2016, the FASB issued ASU 2016-09 (“ASU 2016-09”), Compensation — Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 simplifies several aspects of the accounting for employee share-based payments, including accounting for income taxes, forfeitures, statutory tax withholding requirements, and classification on the statement of cash flows. The amendments in this ASU are effective for annual periods beginning after December 15, 2016. Early adoption is permitted, however, the Company does not intend to early adopt this ASU. The Company has not determined the impact of adoption on its condensed consolidated financial statements. In February 2016, the FASB issued ASU 2016-02 (“ASU 2016-02”), Leases. ASU 2016-02 requires that lessees recognize assets and liabilities for the rights and obligations for leases with a lease term of more than one year. The amendments in this ASU are effective for annual periods ending after December 15, 2018. Early adoption is permitted, however, the Company does not intend to early adopt this ASU. The standard must be applied using a modified retrospective approach. The Company has not determined the impact of adoption on its condensed consolidated financial statements. In January 2015, the FASB issued ASU 2015-01 (“ASU 2015-01”), Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. ASU 2015-01 eliminates from GAAP the concept of extraordinary items. Subtopic 225-20, Income Statement - Extraordinary and Unusual Items, required that an entity separately classify, present, and disclose extraordinary events and transactions. Presently, an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The Company adopted this standard in the quarter ended March 27, 2016, which did not have a material impact on its condensed consolidated financial statements. In August 2014, the FASB issued ASU 2014-15 (“ASU 2014-15”), Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. ASU 2014-15 is intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. Under GAAP, financial statements are prepared under the presumption that the reporting organization will continue to operate as a going concern, except in limited circumstances. Financial reporting under this presumption is commonly referred to as the going concern basis of accounting. The going concern basis of accounting is critical to financial reporting because it establishes the fundamental basis for measuring and classifying assets and liabilities. Currently, GAAP lacks guidance about management’s responsibility to evaluate whether there is substantial doubt about the organization’s ability to continue as a going concern or to provide related footnote disclosures. ASU 2014-15 provides guidance to an organization’s management, with principles and definitions that are intended to reduce diversity in the timing and content of disclosures that are commonly provided by organizations today in the financial statement footnotes. The amendments are effective for the first annual period ending after December 15, 2016, and for annual and interim periods thereafter. Early application is permitted for annual or interim reporting periods for which the financial statements have not previously been issued. The Company does not believe that the adoption of this guidance will have a material impact on its condensed consolidated financial statements. There have been no changes in the Company’s significant accounting policies, other than the adoption of ASU 2015-01, for the three and six months ended June 26, 2016 as compared to the significant accounting policies described in the Form 10-K.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The carrying amounts and the related estimated fair values of the Company’s long-term debt financial instruments not measured at fair value on a recurring basis at June 26, 2016 and December 27, 2015 are presented in Note 8. The carrying value of all other financial instruments, including cash equivalents, accounts receivable, accounts payable, accrued expenses, billings in excess of cost and earnings on uncompleted contracts, income taxes payable and short-term debt, approximated their estimated fair values at June 26, 2016 and December 27, 2015 due to the short-term nature of these instruments.
Net Loss Per Common Share	Net Loss Per Common Share The Company calculates net loss per share in accordance with FASB ASC Topic 260, Earnings per Share (“Topic 260”). Under Topic 260, basic net loss per common share is calculated by dividing net loss by the weighted-average number of common shares outstanding during the reporting period. Diluted net loss per common share reflects the effects of potentially dilutive securities.

Discontinued Operations (Tables)

6 Months Ended

Jun. 26, 2016

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Discontinued Operations, Income Statement and Balance Sheet

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



	Three Months Ended						Six Months Ended
	June 26, 2016			June 28, 2015			June 26, 2016			June 28, 2015
Revenue	$	—		$	22.3		$	—		$	47.8
Cost of sales	—			14.6			—			31.5
Selling, general and administrative expenses	0.1			5.5			0.1			11.6
Interest expense, net	—			3.4			—			6.9
Other net expense (income) items that are not major	—			(0.5		)	—			(0.1		)
Loss from discontinued operations before income taxes	(0.1		)	(0.7		)	(0.1		)	(2.1		)
Income tax benefit	—			1.6			—			1.2
Income (loss) from discontinued operations	$	(0.1	)	$	0.9		$	(0.1	)	$	(0.9	)

The following is a summary of the liabilities of discontinued operations in the accompanying condensed consolidated balance sheets as of June 26, 2016 and December 27, 2015 (in millions):



	June 26, 2016		December 27, 2015
Accrued compensation	$	0.9	$	0.9
Other current liabilities	1.0		1.0
Current liabilities of discontinued operations	$	1.9	$	1.9
Non-current liabilities of discontinued operations	$	3.8	$	4.1

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=51716988&loc=SL51721533-107759

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721665-107760

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=51717284&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 1
-URI http://asc.fasb.org/extlink&oid=51717284&loc=d3e1361-107760

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721683-107760

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=51719941&loc=SL51724579-110230

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5C
-URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721675-107760

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 4A
-URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721663-107760

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=51719941&loc=d3e2941-110230

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5B
-URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721673-107760

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721659-107760

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5A
-URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721671-107760

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5D
-URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721677-107760

+ Details

Goodwill and Intangible Assets (Tables)

6 Months Ended

Jun. 26, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The carrying amounts of goodwill as of June 26, 2016 and December 27, 2015 by reportable segment are as follows (in millions):



	Public Safety & Security		Kratos Government Solutions		Unmanned Systems		Total
Gross value	$	53.9	$	565.8	$	111.1	$	730.8
Less accumulated impairment	18.3		215.3		13.8		247.4
Net	$	35.6	$	350.5	$	97.3	$	483.4

Schedule of Intangible Assets (Finite-Lived)

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



	As of June 26, 2016							As of December 27, 2015
	Gross Value		Accumulated Amortization			Net Value		Gross Value		Accumulated Amortization			Net Value
Acquired finite-lived intangible assets:
Customer relationships	$	53.7	$	(41.6	)	$	12.1	$	83.7	$	(67.1	)	$	16.6
Contracts and backlog	24.7		(23.2		)	1.5		71.3		(69.4		)	1.9
Developed technology and technical know-how	23.1		(14.5		)	8.6		23.1		(13.3		)	9.8
Trade names	1.4		(1.0		)	0.4		5.3		(4.9		)	0.4
Favorable operating lease	—		—			—		1.8		(0.9		)	0.9
Total finite-lived intangible assets	102.9		(80.3		)	22.6		185.2		(155.6		)	29.6
Indefinite-lived trade names	6.9		—			6.9		6.9		—			6.9
Total intangible assets	$	109.8	$	(80.3	)	$	29.5	$	192.1	$	(155.6	)	$	36.5

Schedule of Intangible Assets (Indefinite-Lived)

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



	As of June 26, 2016							As of December 27, 2015
	Gross Value		Accumulated Amortization			Net Value		Gross Value		Accumulated Amortization			Net Value
Acquired finite-lived intangible assets:
Customer relationships	$	53.7	$	(41.6	)	$	12.1	$	83.7	$	(67.1	)	$	16.6
Contracts and backlog	24.7		(23.2		)	1.5		71.3		(69.4		)	1.9
Developed technology and technical know-how	23.1		(14.5		)	8.6		23.1		(13.3		)	9.8
Trade names	1.4		(1.0		)	0.4		5.3		(4.9		)	0.4
Favorable operating lease	—		—			—		1.8		(0.9		)	0.9
Total finite-lived intangible assets	102.9		(80.3		)	22.6		185.2		(155.6		)	29.6
Indefinite-lived trade names	6.9		—			6.9		6.9		—			6.9
Total intangible assets	$	109.8	$	(80.3	)	$	29.5	$	192.1	$	(155.6	)	$	36.5

Inventoried Costs (Tables)

6 Months Ended

Jun. 26, 2016

Inventory Disclosure [Abstract]

Schedule of Inventoried Costs

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



	June 26, 2016			December 27, 2015
Raw materials	$	29.9		$	32.9
Work in process	23.8			19.2
Finished goods	1.2			2.6
Supplies and other	1.6			1.6
Subtotal inventoried costs	56.5			56.3
Less: Customer advances and progress payments	(6.6		)	(0.7		)
Total inventoried costs	$	49.9		$	55.6

Stockholders' Equity (Tables)

6 Months Ended

Jun. 26, 2016

Equity [Abstract]

Summary of Changes in Stockholders' Equity

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



	For the Six Months Ended
	June 26, 2016			June 28, 2015
Stockholders’ equity at beginning of period	$	254.2		$	224.3
Comprehensive loss:
Net loss	(32.6		)	(31.3		)
Change in cumulative translation adjustment	(0.1		)	0.1
Total comprehensive loss	(32.7		)	(31.2		)
Stock-based compensation	3.1			4.0
Issuance of common stock for employee stock purchase plan	1.3			1.8
Restricted stock units traded for taxes	(0.3		)	(0.2		)
Stockholders’ equity at end of period	$	225.6		$	198.7

Components of Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss are as follows (in millions):



	June 26, 2016			June 28, 2015
Cumulative translation adjustment	$	(0.7	)	$	(0.6	)
Post-retirement benefit reserve adjustment net of tax expense	(0.8		)	(1.0		)
Total accumulated other comprehensive loss	$	(1.5	)	$	(1.6	)

Rollforward of Common Stock Outstanding

Common stock issued by the Company for the six months ended June 26, 2016 and June 28, 2015 was as follows (in millions):



	For the Six Months Ended
	June 26, 2016	June 28, 2015
Shares outstanding at beginning of the period	59.1	57.8
Stock issued for employee stock purchase plan, stock options and restricted stock units exercised	0.6	0.6
Shares outstanding at end of the period	59.7	58.4

Income Taxes (Tables)

6 Months Ended

Jun. 26, 2016

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)



	For the Three Months Ended						For the Six Months Ended
	June 26, 2016			June 28, 2015			June 26, 2016			June 28, 2015
Income tax benefit at federal statutory rate	$	(3.0	)	$	(4.5	)	$	(9.5	)	$	(9.0	)
State and foreign taxes, net of federal tax benefit and valuation allowance	1.0			0.4			1.4			0.8
Nondeductible expenses and other	0.3			0.5			0.7			0.9
Impact of deferred tax liabilities for indefinite-lived assets	0.8			1.8			2.3			3.3
Increase in reserves for uncertain tax positions	—			—			1.7			0.1
Increase in federal valuation allowance	2.7			4.1			8.8			8.1
Total income tax provision	$	1.8		$	2.3		$	5.4		$	4.2

Debt (Tables)

6 Months Ended

Jun. 26, 2016

Debt Disclosure [Abstract]

Fair Value of Long-Term Debt



	As of June 26, 2016						As of December 27, 2015
$ in millions	Principal		Carrying Amount		Fair Value		Principal		Carrying Amount		Fair Value
Total long-term debt including current portion	$	452.2	$	445.7	$	348.6	$	452.7	$	445.1	$	315.2

Segment Information (Tables)

6 Months Ended

Jun. 26, 2016

Segment Reporting [Abstract]

Schedule of Segment Revenues, Depreciation and Amortization, and Operating Income (Loss)



	Three Months Ended						Six Months Ended
	June 26, 2016			June 28, 2015			June 26, 2016			June 28, 2015
Revenues:
Kratos Government Solutions
Service revenues	$	57.8		$	53.3		$	110.2		$	103.1
Product sales	62.2			53.8			118.4			111.0
Total Kratos Government Solutions	120.0			107.1			228.6			214.1
Public Safety & Security
Service revenues	30.4			35.5			60.6			73.0
Product sales	—			—			—			—
Total Public Safety & Security	30.4			35.5			60.6			73.0
Unmanned Systems
Service revenues	—			—			—			—
Product sales	17.8			17.9			32.0			30.3
Total Unmanned Systems	17.8			17.9			32.0			30.3
Total revenues	$	168.2		$	160.5		$	321.2		$	317.4
Depreciation & amortization:
Kratos Government Solutions	$	3.6		$	5.0		$	7.7		$	10.1
Public Safety & Security	0.2			0.1			0.3			0.3
Unmanned Systems	1.8			1.6			3.7			3.2
Total depreciation and amortization	$	5.6		$	6.7		$	11.7		$	13.6
Operating income (loss) from continuing operations:
Kratos Government Solutions	$	4.5		$	0.2		$	2.7		$	2.6
Public Safety & Security	0.2			0.6			(2.5		)	0.6
Unmanned Systems	(3.0		)	(2.5		)	(7.2		)	(6.7		)
Unallocated corporate expense, net	(1.7		)	(2.0		)	(3.2		)	(4.1		)
Total operating loss from continuing operations	$	—		$	(3.7	)	$	(10.2	)	$	(7.6	)

Condensed Consolidating Financial Statements (Tables)

6 Months Ended

Jun. 26, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet June 26, 2016 (Unaudited) (in millions)

	Parent Company		Subsidiary Guarantors on a Combined Basis			Non-Guarantors on a Combined Basis		Eliminations			Consolidated
Assets
Current Assets:
Cash and cash equivalents	$	12.2	$	(3.1	)	$	8.5	$	—		$	17.6
Accounts receivable, net	—		185.2			25.8		—			211.0
Amounts due from affiliated companies	210.0		—			—		(210.0		)	—
Inventoried costs	—		34.0			15.9		—			49.9
Other current assets	7.2		14.1			2.3		—			23.6
Total current assets	229.4		230.2			52.5		(210.0		)	302.1
Property, plant and equipment, net	2.1		42.1			7.0		—			51.2
Goodwill	—		442.6			40.8		—			483.4
Intangible assets, net	—		29.5			—		—			29.5
Investment in subsidiaries	466.5		63.8			—		(530.3		)	—
Other assets	0.6		7.4			—		—			8.0
Total assets	$	698.6	$	815.6		$	100.3	$	(740.3	)	$	874.2
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	4.2	$	38.3		$	5.4	$	—		$	47.9
Accrued expenses	5.2		26.2			3.4		—			34.8
Accrued compensation	3.7		27.2			3.3		—			34.2
Billings in excess of costs and earnings on uncompleted contracts	—		41.8			1.4		—			43.2
Amounts due to affiliated companies	—		180.8			29.2		(210.0		)	—
Other current liabilities	0.5		4.1			1.0		—			5.6
Current liabilities of discontinued operations	1.8		—			0.1		—			1.9
Total current liabilities	15.4		318.4			43.8		(210.0		)	167.6
Long-term debt, net of current portion	443.5		—			1.2		—			444.7
Other long-term liabilities	10.3		18.7			3.5		—			32.5
Non-current liabilities of discontinued operations	3.8		—			—		—			3.8
Total liabilities	473.0		337.1			48.5		(210.0		)	648.6
Total stockholders’ equity	225.6		478.5			51.8		(530.3		)	225.6
Total liabilities and stockholders’ equity	$	698.6	$	815.6		$	100.3	$	(740.3	)	$	874.2

Condensed Consolidating Balance Sheet December 27, 2015 (Unaudited) (in millions)

	Parent Company		Subsidiary Guarantors on a Combined Basis			Non-Guarantors on a Combined Basis		Eliminations			Consolidated
Assets
Current Assets:
Cash and cash equivalents	$	22.5	$	(4.8	)	$	10.8	$	—		$	28.5
Accounts receivable, net	—		179.0			27.8		—			206.8
Amounts due from affiliated companies	207.8		—			—		(207.8		)	—
Inventoried costs	—		36.9			18.7		—			55.6
Other current assets	16.4		11.7			1.4		—			29.5
Total current assets	246.7		222.8			58.7		(207.8		)	320.4
Property, plant and equipment, net	2.0		47.5			6.7		—			56.2
Goodwill	—		442.6			40.8		—			483.4
Intangible assets, net	—		36.5			—		—			36.5
Investment in subsidiaries	477.8		60.3			—		(538.1		)	—
Other assets	0.7		6.1			—		—			6.8
Total assets	$	727.2	$	815.8		$	106.2	$	(745.9	)	$	903.3
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	4.3	$	36.5		$	7.5	$	—		$	48.3
Accrued expenses	4.7		29.3			3.0		—			37.0
Accrued compensation	4.1		29.2			3.5		—			36.8
Billings in excess of costs and earnings on uncompleted contracts	—		37.1			5.2		—			42.3
Amounts due to affiliated companies	—		175.7			32.1		(207.8		)	—
Other current liabilities	4.3		0.2			1.6		—			6.1
Current liabilities of discontinued operations	1.8		—			0.1		—			1.9
Total current liabilities	19.2		308.0			53.0		(207.8		)	172.4
Long-term debt, net of current portion	442.4		—			1.7		—			444.1
Other long-term liabilities	7.3		18.0			3.2		—			28.5
Non-current liabilities of discontinued operations	4.1		—			—		—			4.1
Total liabilities	473.0		326.0			57.9		(207.8		)	649.1
Total stockholders’ equity	254.2		489.8			48.3		(538.1		)	254.2
Total liabilities and stockholders’ equity	$	727.2	$	815.8		$	106.2	$	(745.9	)	$	903.3

Schedule of Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Three Months Ended June 26, 2016 (Unaudited) (in millions)

	Parent Company			Subsidiary Guarantors on a Combined Basis			Non-Guarantors on a Combined Basis		Eliminations			Consolidated
Service revenues	$	—		$	82.3		$	5.9	$	—		$	88.2
Product sales	—			69.0			12.9		(1.9		)	80.0
Total revenues	—			151.3			18.8		(1.9		)	168.2
Cost of service revenues	—			60.0			4.4		—			64.4
Cost of product sales	—			50.2			10.3		(1.9		)	58.6
Total costs	—			110.2			14.7		(1.9		)	123.0
Gross profit	—			41.1			4.1		—			45.2
Selling, general and administrative expenses	2.5			36.2			2.5		—			41.2
Research and development expenses	—			3.9			0.1		—			4.0
Operating income (loss) from continuing operations	(2.5		)	1.0			1.5		—			—
Other income (expense):
Interest expense, net	(8.7		)	—			—		—			(8.7		)
Other income (expense), net	—			(0.2		)	0.4		—			0.2
Total other income (expense), net	(8.7		)	(0.2		)	0.4		—			(8.5		)
Income (loss) from continuing operations before income taxes	(11.2		)	0.8			1.9		—			(8.5		)
Provision for income taxes from continuing operations	—			1.5			0.3		—			1.8
Income (loss) from continuing operations	(11.2		)	(0.7		)	1.6		—			(10.3		)
Loss from discontinued operations	(0.1		)	—			—		—			(0.1		)
Equity in net income (loss) of subsidiaries	0.9			1.6			—		(2.5		)	—
Net income (loss)	$	(10.4	)	$	0.9		$	1.6	$	(2.5	)	$	(10.4	)
Comprehensive income (loss)	$	(10.5	)	$	0.9		$	1.5	$	(2.4	)	$	(10.5	)

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Three Months Ended June 28, 2015 (Unaudited) (in millions)

	Parent Company			Subsidiary Guarantors on a Combined Basis			Non-Guarantors on a Combined Basis			Eliminations			Consolidated
Service revenues	$	—		$	84.7		$	4.1		$	—		$	88.8
Product sales	—			62.8			12.2			(3.3		)	71.7
Total revenues	—			147.5			16.3			(3.3		)	160.5
Cost of service revenues	—			63.9			3.2			—			67.1
Cost of product sales	—			46.7			9.1			(3.3		)	52.5
Total costs	—			110.6			12.3			(3.3		)	119.6
Gross profit	—			36.9			4.0			—			40.9
Selling, general and administrative expenses	0.7			37.5			2.1			—			40.3
Research and development expenses	—			4.1			0.2			—			4.3
Operating income (loss) from continuing operations	(0.7		)	(4.7		)	1.7			—			(3.7		)
Other income (expense):
Interest expense, net	(8.8		)	(0.1		)	—			—			(8.9		)
Other income (expense), net	(1.4		)	0.8			(0.4		)	—			(1.0		)
Total other income (expense), net	(10.2		)	0.7			(0.4		)	—			(9.9		)
Income (loss) from continuing operations before income taxes	(10.9		)	(4.0		)	1.3			—			(13.6		)
Provision for income taxes from continuing operations	0.2			1.8			0.3			—			2.3
Income (loss) from continuing operations	(11.1		)	(5.8		)	1.0			—			(15.9		)
Income (loss) from discontinued operations	(3.5		)	2.9			1.5			—			0.9
Equity in net income (loss) of subsidiaries	(0.4		)	2.5			—			(2.1		)	—
Net income (loss)	$	(15.0	)	$	(0.4	)	$	2.5		$	(2.1	)	$	(15.0	)
Comprehensive income (loss)	$	(14.7	)	$	(2.2	)	$	2.8		$	(0.6	)	$	(14.7	)




Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Six Months Ended June 26, 2016 (Unaudited) (in millions)
	Parent Company			Subsidiary Guarantors on a Combined Basis			Non-Guarantors on a Combined Basis		Eliminations			Consolidated
Service revenues	$	—		$	159.7		$	11.1	$	—		$	170.8
Product sales	—			128.0			26.0		(3.6		)	150.4
Total revenues	—			287.7			37.1		(3.6		)	321.2
Cost of service revenues	—			116.7			8.0		—			124.7
Cost of product sales	—			98.2			20.8		(3.6		)	115.4
Total costs	—			214.9			28.8		(3.6		)	240.1
Gross profit	—			72.8			8.3		—			81.1
Selling, general and administrative expenses	3.8			75.8			4.8		—			84.4
Research and development expenses	—			6.8			0.1		—			6.9
Operating income (loss) from continuing operations	(3.8		)	(9.8		)	3.4		—			(10.2		)
Other income (expense):
Interest expense, net	(17.3		)	(0.1		)	—		—			(17.4		)
Other income (expense), net	—			(0.2		)	0.7		—			0.5
Total other income (expense), net	(17.3		)	(0.3		)	0.7		—			(16.9		)
Income (loss) from continuing operations before income taxes	(21.1		)	(10.1		)	4.1		—			(27.1		)
Provision for income taxes from continuing operations	0.1			4.7			0.6		—			5.4
Income (loss) from continuing operations	(21.2		)	(14.8		)	3.5		—			(32.5		)
Loss from discontinued operations	(0.1		)	—			—		—			(0.1		)
Equity in net income (loss) of subsidiaries	(11.3		)	3.5			—		7.8			—
Net income (loss)	$	(32.6	)	$	(11.3	)	$	3.5	$	7.8		$	(32.6	)
Comprehensive income (loss)	$	(32.7	)	$	(11.3	)	$	3.4	$	7.9		$	(32.7	)




Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Six Months Ended June 28, 2015 (Unaudited) (in millions)
	Parent Company			Subsidiary Guarantors on a Combined Basis			Non-Guarantors on a Combined Basis		Eliminations			Consolidated
Service revenues	$	—		$	170.2		$	5.9	$	—		$	176.1
Product sales	—			124.5			23.0		(6.2		)	141.3
Total revenues	—			294.7			28.9		(6.2		)	317.4
Cost of service revenues	—			128.6			4.5		—			133.1
Cost of product sales	—			93.8			17.5		(6.2		)	105.1
Total costs	—			222.4			22.0		(6.2		)	238.2
Gross profit	—			72.3			6.9		—			79.2
Selling, general and administrative expenses	5.8			68.5			4.3		—			78.6
Research and development expenses	—			7.9			0.3		—			8.2
Operating income (loss) from continuing operations	(5.8		)	(4.1		)	2.3		—			(7.6		)
Other income (expense):
Interest expense, net	(17.5		)	(0.2		)	—		—			(17.7		)
Other income (expense), net	(1.4		)	(2.2		)	2.7		—			(0.9		)
Total other income (expense), net	(18.9		)	(2.4		)	2.7		—			(18.6		)
Income (loss) from continuing operations before income taxes	(24.7		)	(6.5		)	5.0		—			(26.2		)
Provision for income taxes from continuing operations	0.4			3.6			0.2		—			4.2
Income (loss) from continuing operations	(25.1		)	(10.1		)	4.8		—			(30.4		)
Income (loss) from discontinued operations	(6.8		)	3.6			2.3		—			(0.9		)
Equity in net income (loss) of subsidiaries	0.6			7.1			—		(7.7		)	—
Net income (loss)	$	(31.3	)	$	0.6		$	7.1	$	(7.7	)	$	(31.3	)
Comprehensive income (loss)	$	(31.2	)	$	0.6		$	7.2	$	(7.8	)	$	(31.2	)

Schedule of Condensed Consolidating Statement of Cash Flows

Condensed Consolidating Statement of Cash Flows Six Months Ended June 26, 2016 (Unaudited) (in millions)

	Parent Company			Subsidiary Guarantors on a Combined Basis			Non-Guarantors on a Combined Basis			Eliminations			Consolidated
Net cash provided by (used in) operating activities from continuing operations	$	(13.2	)	$	1.5		$	(0.7	)	$	—		$	(12.4	)
Investing activities:
Investment in affiliated companies	(2.3		)	—			—			2.3			—
Capital expenditures	(0.5		)	(2.0		)	(1.0		)	—			(3.5		)
Net cash provided by (used in) investing activities from continuing operations	(2.8		)	(2.0		)	(1.0		)	2.3			(3.5		)
Financing activities:
Repayment of debt	—			—			(0.5		)	—			(0.5		)
Proceeds from the sale of employee stock purchase plan shares	1.0			—			—			—			1.0
Financings from affiliated companies	—			2.3			—			(2.3		)	—
Net cash provided by (used in) financing activities from continuing operations	1.0			2.3			(0.5		)	(2.3		)	0.5
Net cash flows of continuing operations	(15.0		)	1.8			(2.2		)	—			(15.4		)
Net operating cash flows from discontinued operations	0.2			(0.1		)	—			—			0.1
Net investing cash flows from discontinued operations	4.5			—			—			—			4.5
Effect of exchange rate changes on cash and cash equivalents	—			—			(0.1		)	—			(0.1		)
Net increase (decrease) in cash and cash equivalents	$	(10.3	)	$	1.7		$	(2.3	)	$	—		$	(10.9	)

Condensed Consolidating Statement of Cash Flows Six Months Ended June 28, 2015 (Unaudited) (in millions)

	Parent Company			Subsidiary Guarantors on a Combined Basis			Non-Guarantors on a Combined Basis			Eliminations			Consolidated
Net cash provided by (used in) operating activities from continuing operations	$	(26.5	)	$	13.7		$	(2.3	)	$	—		$	(15.1	)
Investing activities:
Investment in affiliated companies	—			(11.9		)	—			11.9			—
Change in restricted cash	—			4.7			—			—			4.7
Capital expenditures	(0.3		)	(4.5		)	(0.4		)	—			(5.2		)
Proceeds from sale of assets	—			0.9			—			—			0.9
Net cash provided by (used in) investing activities from continuing operations	(0.3		)	(10.8		)	(0.4		)	11.9			0.4
Financing activities:
Repayment of debt	—			—			(0.5		)	—			(0.5		)
Proceeds from the sale of employee stock purchase plan shares	1.6			—			—			—			1.6
Cash paid for contingent acquisition consideration	—			(0.7		)	—			—			(0.7		)
Financing from affiliated companies	11.9			—			—			(11.9		)	—
Net cash provided by (used in) financing activities from continuing operations	13.5			(0.7		)	(0.5		)	(11.9		)	0.4
Net cash flows of continuing operations	(13.3		)	2.2			(3.2		)	—			(14.3		)
Net operating cash flows from discontinued operations	—			1.7			1.8			—			3.5
Net investing cash flows from discontinued operations	—			(0.3		)	(0.2		)	—			(0.5		)
Net increase (decrease) in cash and cash equivalents	$	(13.3	)	$	3.6		$	(1.6	)	$	—		$	(11.3	)

Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions	6 Months Ended		12 Months Ended
	Jun. 26, 2016	Jun. 28, 2015	Dec. 27, 2015	Aug. 04, 2016
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Fiscal year duration	364 days		364 days
First quarter duration	91 days	91 days
Minimum
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Fiscal year duration	364 days
Maximum
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Fiscal year duration	371 days
Herley
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Ownership percentage (percent)	100.00%
Subsequent Event \| Air Force Research Laboratory ('AFRL')
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cost-share contract, award value				$ 40.8
Government funding to be received				7.3
Investment obligation				$ 33.5

Discontinued Operations - Additional Information (Details) - USD ($) $ in Millions		1 Months Ended	3 Months Ended	6 Months Ended
	Aug. 21, 2015	Nov. 30, 2015	Jun. 28, 2015	Jun. 26, 2016	Jun. 28, 2015	Jan. 31, 2016
Revolving credit facility
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Repayment of outstanding borrowings				$ 41.0
Senior notes \| 7% Senior Notes due 2019
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Stated interest rate (percent)				7.00%
Selling, General and Administrative Expenses
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Depreciation and amortization			$ 1.6		$ 3.2
Herley
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Purchase price, in cash	$ 260.0
Taxes incurred as part of transaction (up to $5.0 Million)	5.0					$ 5.0
Escrow to satisfy any purchase price adjustments	2.0
Working capital adjustments	$ 8.3	$ 8.1
Period to assert claim for indemnification	5 years
Maximum amount of future payment	$ 34.0
Transaction-related costs	11.5
Gain on sale	$ 80.8
Net payment to company after adjustments		2.7
Net payment from escrow		2.0
Difference in estimated working capital and actual working capital and the net cash position at the close of the Transaction		$ 0.7
Herley \| Senior notes \| 7% Senior Notes due 2019
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Redemption				$ 175.0

Discontinued Operations - Results of Discontinued Operations (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 26, 2016	Jun. 28, 2015	Jun. 26, 2016	Jun. 28, 2015
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income tax benefit	$ 0.0	$ 1.6	$ 0.0	$ 1.2
Income (loss) from discontinued operations	(0.1)	0.9	(0.1)	(0.9)
Herley
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenue	0.0	22.3	0.0	47.8
Cost of sales	0.0	14.6	0.0	31.5
Selling, general and administrative expenses	0.1	5.5	0.1	11.6
Interest expense, net	0.0	3.4	0.0	6.9
Other net expense (income) items that are not major	0.0	(0.5)	0.0	(0.1)
Loss from discontinued operations before income taxes	(0.1)	(0.7)	(0.1)	(2.1)
Income tax benefit	0.0	1.6	0.0	1.2
Income (loss) from discontinued operations	$ (0.1)	$ 0.9	$ (0.1)	$ (0.9)

Discontinued Operations - Assets and Liabilities (Details) - USD ($) $ in Millions	Jun. 26, 2016	Dec. 27, 2015
Discontinued Operations and Disposal Groups [Abstract]
Accrued compensation	$ 0.9	$ 0.9
Other current liabilities	1.0	1.0
Current liabilities of discontinued operations	1.9	1.9
Non-current liabilities of discontinued operations	$ 3.8	$ 4.1

Goodwill and Intangible Assets - Goodwill (Details) - USD ($) $ in Millions	Jun. 26, 2016	Dec. 27, 2015
Goodwill [Line Items]
Gross value	$ 730.8	$ 730.8
Less accumulated impairment	247.4	247.4
Net	483.4	483.4
Public Safety & Security
Goodwill [Line Items]
Gross value	53.9	53.9
Less accumulated impairment	18.3	18.3
Net	35.6	35.6
Kratos Government Solutions
Goodwill [Line Items]
Gross value	565.8	565.8
Less accumulated impairment	215.3	215.3
Net	350.5	350.5
Unmanned Systems
Goodwill [Line Items]
Gross value	111.1	111.1
Less accumulated impairment	13.8	13.8
Net	$ 97.3	$ 97.3

Goodwill and Intangible Assets - Purchased Intangible Assets (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 26, 2016	Jun. 28, 2015	Dec. 27, 2015
Acquired finite-lived intangible assets:
Gross Value	$ 102.9		$ 185.2
Accumulated Amortization	(80.3)		(155.6)
Net Value	22.6		29.6
Total intangible assets: Gross Value	109.8		192.1
Total intangible assets: Net Value	29.5		36.5
Aggregate amortization expense for finite-lived intangible assets	5.3	$ 7.3
Trade names
Acquired finite-lived intangible assets:
Indefinite-lived trade names	6.9		6.9
Customer relationships
Acquired finite-lived intangible assets:
Gross Value	53.7		83.7
Accumulated Amortization	(41.6)		(67.1)
Net Value	12.1		16.6
Contracts and backlog
Acquired finite-lived intangible assets:
Gross Value	24.7		71.3
Accumulated Amortization	(23.2)		(69.4)
Net Value	1.5		1.9
Developed technology and technical know-how
Acquired finite-lived intangible assets:
Gross Value	23.1		23.1
Accumulated Amortization	(14.5)		(13.3)
Net Value	8.6		9.8
Trade names
Acquired finite-lived intangible assets:
Gross Value	1.4		5.3
Accumulated Amortization	(1.0)		(4.9)
Net Value	0.4		0.4
Favorable operating lease
Acquired finite-lived intangible assets:
Gross Value	0.0		1.8
Accumulated Amortization	0.0		(0.9)
Net Value	$ 0.0		$ 0.9

Inventoried Costs (Details) - USD ($) $ in Millions	Jun. 26, 2016	Dec. 27, 2015
Inventory Disclosure [Abstract]
Raw materials	$ 29.9	$ 32.9
Work in process	23.8	19.2
Finished goods	1.2	2.6
Supplies and other	1.6	1.6
Subtotal inventoried costs	56.5	56.3
Less: Customer advances and progress payments	(6.6)	(0.7)
Total inventoried costs	$ 49.9	$ 55.6

Stockholders' Equity - Summary of Changes in Stockholders' Equity (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 26, 2016	Jun. 28, 2015	Jun. 26, 2016	Jun. 28, 2015
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stockholders’ equity at beginning of period			$ 254.2	$ 224.3
Comprehensive loss:
Net loss	$ (10.4)	$ (15.0)	(32.6)	(31.3)
Change in cumulative translation adjustment	(0.1)	0.3	(0.1)	0.1
Comprehensive loss	(10.5)	(14.7)	(32.7)	(31.2)
Stock-based compensation			3.1	4.0
Issuance of common stock for employee stock purchase plan			1.3	1.8
Restricted stock units traded for taxes			(0.3)	(0.2)
Stockholders’ equity at end of period	$ 225.6	$ 198.7	$ 225.6	$ 198.7

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Stockholders' Equity - Accumulated Other Comprehensive Loss (Details) - USD ($)	6 Months Ended
	Jun. 26, 2016	Jun. 28, 2015	Dec. 27, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total accumulated other comprehensive loss	$ (1,500,000)	$ (1,600,000)	$ (1,400,000)
Reclassifications from other comprehensive income	0	0
Cumulative translation adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total accumulated other comprehensive loss	(700,000)	(600,000)
Post-retirement benefit reserve adjustment net of tax expense
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total accumulated other comprehensive loss	$ (800,000)	$ (1,000,000)

- Definition

Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at period end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, other than temporary impairment (OTTI) losses related to factors other than credit losses on available-for-sale and held-to-maturity debt securities that an entity does not intend to sell and it is not more likely than not that the entity will be required to sell before recovery of the amortized cost basis, as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge.

+ References + Details

Stockholders' Equity - Rollforward of Common Stock Outstanding (Details) - shares	6 Months Ended
	Jun. 26, 2016	Jun. 28, 2015
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares outstanding at beginning of the period	59,139,651	57,800,000
Stock issued for employee stock purchase plan, stock options and restricted stock units exercised (shares)	600,000	600,000
Shares outstanding at end of the period	59,675,841	58,400,000

Net Loss Per Common Share (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jun. 26, 2016	Jun. 28, 2015	Jun. 26, 2016	Jun. 28, 2015
Stock options and awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of EPS (in shares)	1.4	1.8	1.7	2.3

Income Taxes - Income Tax Provision Reconciliation (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 26, 2016	Jun. 28, 2015	Jun. 26, 2016	Jun. 28, 2015
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract]
Federal statutory income tax rate (percent)	35.00%	35.00%	35.00%	35.00%
Income tax benefit at federal statutory rate	$ (3.0)	$ (4.5)	$ (9.5)	$ (9.0)
State and foreign taxes, net of federal tax benefit and valuation allowance	1.0	0.4	1.4	0.8
Nondeductible expenses and other	0.3	0.5	0.7	0.9
Impact of deferred tax liabilities for indefinite-lived assets	0.8	1.8	2.3	3.3
Increase in reserves for uncertain tax positions	0.0	0.0	1.7	0.1
Increase in federal valuation allowance	2.7	4.1	8.8	8.1
Total income tax provision	$ 1.8	$ 2.3	$ 5.4	$ 4.2

Income Taxes - Additional Information (Details) - USD ($) $ in Millions	1 Months Ended	6 Months Ended
	Mar. 31, 2010	Jun. 26, 2016	Jun. 28, 2015	Dec. 27, 2015
Income Tax Disclosure [Abstract]
Federal annual utilization of NOL carryforwards limit, next five years	$ 27.0
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	$ 11.6
Unrecognized tax benefits that if recognized would impact the effective tax rate for continuing operations				$ 17.2
Unrecognized tax benefits increase (decrease)		$ 1.3
Expense for interest and penalties		$ 0.7	$ 0.1

Debt - Issuance of 7% Senior Secured Notes due 2019 (Details)			1 Months Ended	6 Months Ended	12 Months Ended
	Sep. 22, 2015 USD ($)	May 14, 2014 USD ($)	May 31, 2014 USD ($)	Jun. 26, 2016 USD ($)	Dec. 27, 2015 USD ($)	Aug. 21, 2015 USD ($)
Debt Instrument [Line Items]
Principal				$ 452,200,000	$ 452,700,000
Original issue discount				2,900,000	3,300,000
Debt issuance cost				3,600,000	$ 4,300,000
Revolving credit facility
Debt Instrument [Line Items]
Credit agreement borrowings			$ 41,000,000
Maximum borrowing capacity		$ 110,000,000.0		110,000,000.0		$ 110,000,000.0
Fixed charge coverage ratio		1.15
Outstanding borrowings				$ 0		$ 41,000,000
Senior notes \| 7% Senior Notes due 2019
Debt Instrument [Line Items]
Stated interest rate (percent)				7.00%
Principal			$ 625,000,000.0	$ 450,000,000
Proceeds from the issuance of long-term debt		$ 618,500,000
Original issue discount	$ 1,400,000	6,500,000
Debt issuance cost		$ 8,800,000
Reacquisition price	175,000,000
Write off of unamortized issue costs	1,800,000
Loss on extinguishment of debt	3,400,000
Fixed charge coverage ratio			2.0
Period following asset disposition				360 days
Legal fees incurred	$ 200,000
Notes outstanding				$ 450,000,000
Senior notes \| 7% Senior Notes due 2019 \| Between 5/15/2016 and 5/15/2017
Debt Instrument [Line Items]
Redemption amount as percentage of aggregate principal amount (percent)				105.25%
Senior notes \| 7% Senior Notes due 2019 \| Between 5/15/2017 and 5/15/2018
Debt Instrument [Line Items]
Redemption amount as percentage of aggregate principal amount (percent)				102.625%
Senior notes \| 7% Senior Notes due 2019 \| After 5/15/2018
Debt Instrument [Line Items]
Redemption amount as percentage of aggregate principal amount (percent)				100.00%
Senior notes \| 10% Senior Notes due in 2017
Debt Instrument [Line Items]
Stated interest rate (percent)			10.00%
Principal			$ 625,000,000
Reacquisition price			661,500,000
Early termination fee			31,200,000
Write off of unamortized issue costs			15,500,000
Unamortized premium			12,900,000
Interest accrued in escrow			5,300,000
Loss on extinguishment of debt			$ 39,100,000

Debt - $110.0 million Credit Agreement (Details)			6 Months Ended
Debt - $110.0 million Credit Agreement (Details)	Aug. 21, 2015 USD ($)	May 14, 2014 USD ($)	Jun. 26, 2016 USD ($)	Aug. 19, 2015 USD ($)	May 31, 2015 USD ($)
Herley
Line of Credit Facility [Line Items]
Reserve on the maximum borrowings	$ 0
2014 Credit Agreement, Third Amendment \| Herley
Line of Credit Facility [Line Items]
Reserve amount based on collateral carrying value	50,800,000
2014 Credit Agreement, Fourth Amendment
Line of Credit Facility [Line Items]
Letter of credit exposure outstanding				$ 17,000,000
Revolving Loans
Line of Credit Facility [Line Items]
Maximum borrowing capacity	110,000,000.0	$ 110,000,000.0	$ 110,000,000.0
Maturity period		5 years
Potential maximum borrowing capacity, subject to Lender approval		$ 135,000,000.0
Fixed charge coverage ratio		1.15
Outstanding borrowings	$ 41,000,000		0
Remaining borrowing capacity			$ 48,400,000
Revolving Loans \| 2014 Credit Agreement, Third Amendment
Line of Credit Facility [Line Items]
Fixed charge coverage ratio		1.15
Revolving Loans \| Minimum \| 2014 Credit Agreement, Third Amendment \| Herley
Line of Credit Facility [Line Items]
Minimum amount required for repurchase					$ 175,000,000
Revolving Loans \| Maximum \| Herley
Line of Credit Facility [Line Items]
Period from sale allowed to reinvest in similar collateral assets			360 days
Revolving Loans \| Federal Funds Rate
Line of Credit Facility [Line Items]
Base rate (the greater of prime rate or 0.5% over federal funds rate) (in percent)			0.50%
Revolving Loans \| LIBOR rate
Line of Credit Facility [Line Items]
Base rate (floor, 1.0% over one-month LIBOR) (in percent)			1.00%
Revolving Loans \| Base Rate \| Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate (percent)			1.50%
Revolving Loans \| Base Rate \| Maximum
Line of Credit Facility [Line Items]
Basis spread on variable rate (percent)			2.00%
Revolving Loans \| Eurodollar \| Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate (percent)			2.50%
Revolving Loans \| Eurodollar \| Maximum
Line of Credit Facility [Line Items]
Basis spread on variable rate (percent)			3.00%
Letter of Credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity		$ 50,000,000.0
Outstanding borrowings			$ 13,000,000
Swingline Loan
Line of Credit Facility [Line Items]
Maximum borrowing capacity		$ 10,000,000.0
Fixed charge coverage ratio not measured \| Revolving Loans \| 2014 Credit Agreement, Third Amendment
Line of Credit Facility [Line Items]
Covenant Terms, capacity of outstanding loans or credit					0
Fixed charge coverage ratio not measured \| Letter of Credit \| 2014 Credit Agreement, Third Amendment
Line of Credit Facility [Line Items]
Covenant Terms, capacity of outstanding loans or credit					17,000,000
Fixed charge coverage ratio not measured \| Swingline Loan \| 2014 Credit Agreement, Third Amendment
Line of Credit Facility [Line Items]
Covenant Terms, capacity of outstanding loans or credit					$ 0
Fixed charge coverage ratio of at least 1.05 \| 2014 Credit Agreement, Third Amendment
Line of Credit Facility [Line Items]
Fixed charge coverage ratio					1.05
Fixed charge coverage ratio of at least 1.05 \| Revolving Loans plus outstanding Swingline Loans plus Letters of Credit \| 2014 Credit Agreement, Third Amendment
Line of Credit Facility [Line Items]
Covenant Terms, capacity of outstanding loans or credit					$ 17,000,000
Herley disposition proceeds reinvestment reserve, as defined in the amendment \| Minimum \| 2014 Credit Agreement, Third Amendment
Line of Credit Facility [Line Items]
Covenant Terms, percentage of reinvestment in excess of loans and credit (percent)					0.00%
Herley disposition proceeds reinvestment reserve, as defined in the amendment \| Maximum \| 2014 Credit Agreement, Third Amendment
Line of Credit Facility [Line Items]
Covenant Terms, percentage of reinvestment in excess of loans and credit (percent)					15.00%
Fixed charge coverage ratio of at least 1.10 \| 2014 Credit Agreement, Third Amendment
Line of Credit Facility [Line Items]
Fixed charge coverage ratio					1.10
Fixed charge coverage ratio of at least 1.10 \| Minimum \| 2014 Credit Agreement, Third Amendment
Line of Credit Facility [Line Items]
Covenant Terms, percentage of reinvestment in excess of loans and credit (percent)					15.00%
Fixed charge coverage ratio of at least 1.10 \| Maximum \| 2014 Credit Agreement, Third Amendment
Line of Credit Facility [Line Items]
Covenant Terms, percentage of reinvestment in excess of loans and credit (percent)					25.00%
Fixed charge coverage ratio remains at 1.15 \| 2014 Credit Agreement, Third Amendment
Line of Credit Facility [Line Items]
Fixed charge coverage ratio					1.15

Debt - Debt Acquired in Acquisition (Details)		6 Months Ended
Debt - Debt Acquired in Acquisition (Details)	Sep. 16, 2008 USD ($) subsidiary	Jun. 26, 2016 USD ($)	Dec. 27, 2015 USD ($)
Debt Instrument [Line Items]
Debt instrument, face amount		$ 452,200,000	$ 452,700,000
Carrying Amount		445,700,000	$ 445,100,000
10-year term loan
Debt Instrument [Line Items]
Debt instrument, face amount	$ 10,000,000.0
Maturity period	10 years
Number of subsidiaries acquired \| subsidiary	1
Carrying Amount		2,200,000
Quarterly installment payment - principal		$ 300,000
LIBOR rate \| 10-year term loan
Debt Instrument [Line Items]
Basis spread on variable rate (percent)		1.50%

Debt - Fair Value of Long-term Debt (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 26, 2016	Dec. 27, 2015
Debt Disclosure [Abstract]
Principal	$ 452.2	$ 452.7
Carrying Amount	445.7	445.1
Fair Value	348.6	315.2
Net unamortized original issue discount	2.9	3.3
Debt issuance cost	$ 3.6	$ 4.3

Segment Information - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Mar. 27, 2016	Jun. 26, 2016	Jun. 28, 2015
Segment Reporting Information [Line Items]
Litigation related charges		$ 1.7	$ 0.0
Public Safety & Security \| Settled Litigation
Segment Reporting Information [Line Items]
Litigation related charges	$ 1.9	1.9
Kratos Government Solutions \| Inventories
Segment Reporting Information [Line Items]
Impairment charges relating to inventories		$ 7.7

Segment Information - Schedule of Segment Revenues, Depreciation and Amortization, and Operating (Loss) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 26, 2016	Jun. 28, 2015	Jun. 26, 2016	Jun. 28, 2015
Revenues:
Service revenues	$ 88.2	$ 88.8	$ 170.8	$ 176.1
Product sales	80.0	71.7	150.4	141.3
Total revenues	168.2	160.5	321.2	317.4
Depreciation & amortization:
Total depreciation and amortization			11.7	13.6
Operating income (loss) from continuing operations:
Total operating loss from continuing operations	0.0	(3.7)	(10.2)	(7.6)
Reportable Segments
Depreciation & amortization:
Total depreciation and amortization	5.6	6.7	11.7	13.6
Reportable Segments \| Kratos Government Solutions
Revenues:
Service revenues	57.8	53.3	110.2	103.1
Product sales	62.2	53.8	118.4	111.0
Total revenues	120.0	107.1	228.6	214.1
Depreciation & amortization:
Total depreciation and amortization	3.6	5.0	7.7	10.1
Operating income (loss) from continuing operations:
Total operating loss from continuing operations	4.5	0.2	2.7	2.6
Reportable Segments \| Public Safety & Security
Revenues:
Service revenues	30.4	35.5	60.6	73.0
Product sales	0.0	0.0	0.0	0.0
Total revenues	30.4	35.5	60.6	73.0
Depreciation & amortization:
Total depreciation and amortization	0.2	0.1	0.3	0.3
Operating income (loss) from continuing operations:
Total operating loss from continuing operations	0.2	0.6	(2.5)	0.6
Reportable Segments \| Unmanned Systems
Revenues:
Service revenues	0.0	0.0	0.0	0.0
Product sales	17.8	17.9	32.0	30.3
Total revenues	17.8	17.9	32.0	30.3
Depreciation & amortization:
Total depreciation and amortization	1.8	1.6	3.7	3.2
Operating income (loss) from continuing operations:
Total operating loss from continuing operations	(3.0)	(2.5)	(7.2)	(6.7)
Unallocated corporate expense, net
Operating income (loss) from continuing operations:
Total operating loss from continuing operations	$ (1.7)	$ (2.0)	$ (3.2)	$ (4.1)

Significant Customers (Details) - Government contracts - Revenue - U.S. Government - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 26, 2016	Jun. 28, 2015	Jun. 26, 2016	Jun. 28, 2015
Revenue, Major Customer [Line Items]
Sales to the U.S. Government, amount	$ 102.9	$ 99.2	$ 198.2	$ 194.2
Sales to the U.S. Government, percentage of total revenue (percent)	61.00%	62.00%	62.00%	61.00%

Commitments and Contingencies (Details) $ in Millions	1 Months Ended	3 Months Ended	6 Months Ended
Commitments and Contingencies (Details) $ in Millions	Apr. 30, 2016 USD ($)	Mar. 27, 2016 USD ($)	Jun. 26, 2016 USD ($)	Jun. 28, 2015 USD ($)	Jul. 28, 2015 subsidiary
Commitments and Contingencies Disclosure [Abstract]
Number of subsidiaries with certain unallowable costs \| subsidiary					1
Loss Contingencies [Line Items]
Litigation related charges			$ 1.7	$ 0.0
Settled Litigation
Loss Contingencies [Line Items]
Settlement amount related to unallowable costs	$ 0.2
Settled Litigation \| Public Safety & Security
Loss Contingencies [Line Items]
Litigation related charges		$ 1.9	$ 1.9

Condensed Consolidating Balance Sheet (Details) - USD ($)	Jun. 26, 2016	Dec. 27, 2015	Jun. 28, 2015	Dec. 28, 2014	May 31, 2014
Condensed Financial Statements, Captions [Line Items]
Principal	$ 452,200,000	$ 452,700,000
Current assets:
Cash and cash equivalents	17,600,000	28,500,000	$ 22,200,000	$ 33,500,000
Accounts receivable, net	211,000,000	206,800,000
Amounts due from affiliated companies	0	0
Inventoried costs	49,900,000	55,600,000
Other current assets	23,600,000	29,500,000
Total current assets	302,100,000	320,400,000
Property, plant and equipment, net	51,200,000	56,200,000
Goodwill	483,400,000	483,400,000
Intangible assets, net	29,500,000	36,500,000
Investment in subsidiaries	0	0
Other assets	8,000,000	6,800,000
Total assets	874,200,000	903,300,000
Current liabilities:
Accounts payable	47,900,000	48,300,000
Accrued expenses	34,800,000	37,000,000
Accrued compensation	34,200,000	36,800,000
Billings in excess of costs and earnings on uncompleted contracts	43,200,000	42,300,000
Amounts due to affiliated companies	0	0
Other current liabilities	5,600,000	6,100,000
Current liabilities of discontinued operations	1,900,000	1,900,000
Total current liabilities	167,600,000	172,400,000
Long-term debt, net of current portion	444,700,000	444,100,000
Other long-term liabilities	32,500,000	28,500,000
Non-current liabilities of discontinued operations	3,800,000	4,100,000
Total liabilities	648,600,000	649,100,000
Total stockholders’ equity	225,600,000	254,200,000
Total liabilities and stockholders’ equity	874,200,000	903,300,000
Eliminations
Current assets:
Cash and cash equivalents	0	0
Accounts receivable, net	0	0
Amounts due from affiliated companies	(210,000,000)	(207,800,000)
Inventoried costs	0	0
Other current assets	0	0
Total current assets	(210,000,000)	(207,800,000)
Property, plant and equipment, net	0	0
Goodwill	0	0
Intangible assets, net	0	0
Investment in subsidiaries	(530,300,000)	(538,100,000)
Other assets	0	0
Total assets	(740,300,000)	(745,900,000)
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
Amounts due to affiliated companies	(210,000,000)	(207,800,000)
Other current liabilities	0	0
Current liabilities of discontinued operations	0	0
Total current liabilities	(210,000,000)	(207,800,000)
Long-term debt, net of current portion	0	0
Other long-term liabilities	0	0
Non-current liabilities of discontinued operations	0	0
Total liabilities	(210,000,000)	(207,800,000)
Total stockholders’ equity	(530,300,000)	(538,100,000)
Total liabilities and stockholders’ equity	$ (740,300,000)	(745,900,000)
Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Ownership percentage (percent)	100.00%
Parent Company
Current assets:
Cash and cash equivalents	$ 12,200,000	22,500,000
Accounts receivable, net	0	0
Amounts due from affiliated companies	210,000,000	207,800,000
Inventoried costs	0	0
Other current assets	7,200,000	16,400,000
Total current assets	229,400,000	246,700,000
Property, plant and equipment, net	2,100,000	2,000,000
Goodwill	0	0
Intangible assets, net	0	0
Investment in subsidiaries	466,500,000	477,800,000
Other assets	600,000	700,000
Total assets	698,600,000	727,200,000
Current liabilities:
Accounts payable	4,200,000	4,300,000
Accrued expenses	5,200,000	4,700,000
Accrued compensation	3,700,000	4,100,000
Billings in excess of costs and earnings on uncompleted contracts	0	0
Amounts due to affiliated companies	0	0
Other current liabilities	500,000	4,300,000
Current liabilities of discontinued operations	1,800,000	1,800,000
Total current liabilities	15,400,000	19,200,000
Long-term debt, net of current portion	443,500,000	442,400,000
Other long-term liabilities	10,300,000	7,300,000
Non-current liabilities of discontinued operations	3,800,000	4,100,000
Total liabilities	473,000,000	473,000,000
Total stockholders’ equity	225,600,000	254,200,000
Total liabilities and stockholders’ equity	698,600,000	727,200,000
Subsidiary Guarantors on a Combined Basis
Current assets:
Cash and cash equivalents	(3,100,000)	(4,800,000)
Accounts receivable, net	185,200,000	179,000,000
Amounts due from affiliated companies	0	0
Inventoried costs	34,000,000	36,900,000
Other current assets	14,100,000	11,700,000
Total current assets	230,200,000	222,800,000
Property, plant and equipment, net	42,100,000	47,500,000
Goodwill	442,600,000	442,600,000
Intangible assets, net	29,500,000	36,500,000
Investment in subsidiaries	63,800,000	60,300,000
Other assets	7,400,000	6,100,000
Total assets	815,600,000	815,800,000
Current liabilities:
Accounts payable	38,300,000	36,500,000
Accrued expenses	26,200,000	29,300,000
Accrued compensation	27,200,000	29,200,000
Billings in excess of costs and earnings on uncompleted contracts	41,800,000	37,100,000
Amounts due to affiliated companies	180,800,000	175,700,000
Other current liabilities	4,100,000	200,000
Current liabilities of discontinued operations	0	0
Total current liabilities	318,400,000	308,000,000
Long-term debt, net of current portion	0	0
Other long-term liabilities	18,700,000	18,000,000
Non-current liabilities of discontinued operations	0	0
Total liabilities	337,100,000	326,000,000
Total stockholders’ equity	478,500,000	489,800,000
Total liabilities and stockholders’ equity	815,600,000	815,800,000
Non-Guarantors on a Combined Basis
Current assets:
Cash and cash equivalents	8,500,000	10,800,000
Accounts receivable, net	25,800,000	27,800,000
Amounts due from affiliated companies	0	0
Inventoried costs	15,900,000	18,700,000
Other current assets	2,300,000	1,400,000
Total current assets	52,500,000	58,700,000
Property, plant and equipment, net	7,000,000	6,700,000
Goodwill	40,800,000	40,800,000
Intangible assets, net	0	0
Investment in subsidiaries	0	0
Other assets	0	0
Total assets	100,300,000	106,200,000
Current liabilities:
Accounts payable	5,400,000	7,500,000
Accrued expenses	3,400,000	3,000,000
Accrued compensation	3,300,000	3,500,000
Billings in excess of costs and earnings on uncompleted contracts	1,400,000	5,200,000
Amounts due to affiliated companies	29,200,000	32,100,000
Other current liabilities	1,000,000	1,600,000
Current liabilities of discontinued operations	100,000	100,000
Total current liabilities	43,800,000	53,000,000
Long-term debt, net of current portion	1,200,000	1,700,000
Other long-term liabilities	3,500,000	3,200,000
Non-current liabilities of discontinued operations	0	0
Total liabilities	48,500,000	57,900,000
Total stockholders’ equity	51,800,000	48,300,000
Total liabilities and stockholders’ equity	100,300,000	$ 106,200,000
Senior notes \| 7% Senior Notes due 2019
Condensed Financial Statements, Captions [Line Items]
Principal	$ 450,000,000				$ 625,000,000.0

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 26, 2016	Jun. 28, 2015	Jun. 26, 2016	Jun. 28, 2015
Condensed Financial Statements, Captions [Line Items]
Service revenues	$ 88.2	$ 88.8	$ 170.8	$ 176.1
Product sales	80.0	71.7	150.4	141.3
Total revenues	168.2	160.5	321.2	317.4
Cost of service revenues	64.4	67.1	124.7	133.1
Cost of product sales	58.6	52.5	115.4	105.1
Total costs	123.0	119.6	240.1	238.2
Gross profit	45.2	40.9	81.1	79.2
Selling, general and administrative expenses	41.2	40.3	84.4	78.6
Research and development expenses	4.0	4.3	6.9	8.2
Operating loss from continuing operations	0.0	(3.7)	(10.2)	(7.6)
Other income (expense):
Interest income (expense), net	(8.7)	(8.9)	(17.4)	(17.7)
Other income (expense), net	0.2	(1.0)	0.5	(0.9)
Total other expense, net	(8.5)	(9.9)	(16.9)	(18.6)
Loss from continuing operations before income taxes	(8.5)	(13.6)	(27.1)	(26.2)
Provision for income taxes from continuing operations	1.8	2.3	5.4	4.2
Loss from continuing operations	(10.3)	(15.9)	(32.5)	(30.4)
Income (loss) from discontinued operations	(0.1)	0.9	(0.1)	(0.9)
Equity in net income (loss) of subsidiaries	0.0	0.0	0.0	0.0
Net loss	(10.4)	(15.0)	(32.6)	(31.3)
Comprehensive income (loss)	(10.5)	(14.7)	(32.7)	(31.2)
Eliminations
Condensed Financial Statements, Captions [Line Items]
Service revenues	0.0	0.0	0.0	0.0
Product sales	(1.9)	(3.3)	(3.6)	(6.2)
Total revenues	(1.9)	(3.3)	(3.6)	(6.2)
Cost of service revenues	0.0	0.0	0.0	0.0
Cost of product sales	(1.9)	(3.3)	(3.6)	(6.2)
Total costs	(1.9)	(3.3)	(3.6)	(6.2)
Gross profit	0.0	0.0	0.0	0.0
Selling, general and administrative expenses	0.0	0.0	0.0	0.0
Research and development expenses	0.0	0.0	0.0	0.0
Operating loss from continuing operations	0.0	0.0	0.0	0.0
Other income (expense):
Interest income (expense), net	0.0	0.0	0.0	0.0
Other income (expense), net	0.0	0.0	0.0	0.0
Total other expense, net	0.0	0.0	0.0	0.0
Loss from continuing operations before income taxes	0.0	0.0	0.0	0.0
Provision for income taxes from continuing operations	0.0	0.0	0.0	0.0
Loss from continuing operations	0.0	0.0	0.0	0.0
Income (loss) from discontinued operations	0.0	0.0	0.0	0.0
Equity in net income (loss) of subsidiaries	(2.5)	(2.1)	7.8	(7.7)
Net loss	(2.5)	(2.1)	7.8	(7.7)
Comprehensive income (loss)	(2.4)	(0.6)	7.9	(7.8)
Parent Company
Condensed Financial Statements, Captions [Line Items]
Service revenues	0.0	0.0	0.0	0.0
Product sales	0.0	0.0	0.0	0.0
Total revenues	0.0	0.0	0.0	0.0
Cost of service revenues	0.0	0.0	0.0	0.0
Cost of product sales	0.0	0.0	0.0	0.0
Total costs	0.0	0.0	0.0	0.0
Gross profit	0.0	0.0	0.0	0.0
Selling, general and administrative expenses	2.5	0.7	3.8	5.8
Research and development expenses	0.0	0.0	0.0	0.0
Operating loss from continuing operations	(2.5)	(0.7)	(3.8)	(5.8)
Other income (expense):
Interest income (expense), net	(8.7)	(8.8)	(17.3)	(17.5)
Other income (expense), net	0.0	(1.4)	0.0	(1.4)
Total other expense, net	(8.7)	(10.2)	(17.3)	(18.9)
Loss from continuing operations before income taxes	(11.2)	(10.9)	(21.1)	(24.7)
Provision for income taxes from continuing operations	0.0	0.2	0.1	0.4
Loss from continuing operations	(11.2)	(11.1)	(21.2)	(25.1)
Income (loss) from discontinued operations	(0.1)	(3.5)	(0.1)	(6.8)
Equity in net income (loss) of subsidiaries	0.9	(0.4)	(11.3)	0.6
Net loss	(10.4)	(15.0)	(32.6)	(31.3)
Comprehensive income (loss)	(10.5)	(14.7)	(32.7)	(31.2)
Subsidiary Guarantors on a Combined Basis
Condensed Financial Statements, Captions [Line Items]
Service revenues	82.3	84.7	159.7	170.2
Product sales	69.0	62.8	128.0	124.5
Total revenues	151.3	147.5	287.7	294.7
Cost of service revenues	60.0	63.9	116.7	128.6
Cost of product sales	50.2	46.7	98.2	93.8
Total costs	110.2	110.6	214.9	222.4
Gross profit	41.1	36.9	72.8	72.3
Selling, general and administrative expenses	36.2	37.5	75.8	68.5
Research and development expenses	3.9	4.1	6.8	7.9
Operating loss from continuing operations	1.0	(4.7)	(9.8)	(4.1)
Other income (expense):
Interest income (expense), net	0.0	(0.1)	(0.1)	(0.2)
Other income (expense), net	(0.2)	0.8	(0.2)	(2.2)
Total other expense, net	(0.2)	0.7	(0.3)	(2.4)
Loss from continuing operations before income taxes	0.8	(4.0)	(10.1)	(6.5)
Provision for income taxes from continuing operations	1.5	1.8	4.7	3.6
Loss from continuing operations	(0.7)	(5.8)	(14.8)	(10.1)
Income (loss) from discontinued operations	0.0	2.9	0.0	3.6
Equity in net income (loss) of subsidiaries	1.6	2.5	3.5	7.1
Net loss	0.9	(0.4)	(11.3)	0.6
Comprehensive income (loss)	0.9	(2.2)	(11.3)	0.6
Non-Guarantors on a Combined Basis
Condensed Financial Statements, Captions [Line Items]
Service revenues	5.9	4.1	11.1	5.9
Product sales	12.9	12.2	26.0	23.0
Total revenues	18.8	16.3	37.1	28.9
Cost of service revenues	4.4	3.2	8.0	4.5
Cost of product sales	10.3	9.1	20.8	17.5
Total costs	14.7	12.3	28.8	22.0
Gross profit	4.1	4.0	8.3	6.9
Selling, general and administrative expenses	2.5	2.1	4.8	4.3
Research and development expenses	0.1	0.2	0.1	0.3
Operating loss from continuing operations	1.5	1.7	3.4	2.3
Other income (expense):
Interest income (expense), net	0.0	0.0	0.0	0.0
Other income (expense), net	0.4	(0.4)	0.7	2.7
Total other expense, net	0.4	(0.4)	0.7	2.7
Loss from continuing operations before income taxes	1.9	1.3	4.1	5.0
Provision for income taxes from continuing operations	0.3	0.3	0.6	0.2
Loss from continuing operations	1.6	1.0	3.5	4.8
Income (loss) from discontinued operations	0.0	1.5	0.0	2.3
Equity in net income (loss) of subsidiaries	0.0	0.0	0.0	0.0
Net loss	1.6	2.5	3.5	7.1
Comprehensive income (loss)	$ 1.5	$ 2.8	$ 3.4	$ 7.2

Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 26, 2016	Jun. 28, 2015
Condensed Financial Statements, Captions [Line Items]
Net cash provided by (used in) operating activities from continuing operations	$ (12.4)	$ (15.1)
Investing activities:
Investment in affiliated companies	0.0	0.0
Change in restricted cash	0.0	4.7
Capital expenditures	(3.5)	(5.2)
Proceeds from sale of assets	0.0	0.9
Net cash provided by (used in) investing activities from continuing operations	(3.5)	0.4
Financing activities:
Repayment of debt	(0.5)	(0.5)
Proceeds from exercise of restricted stock units, employee stock options, and employee stock purchase plan	1.0	1.6
Cash paid for contingent acquisition consideration	0.0	(0.7)
Financing from affiliated companies	0.0	0.0
Net cash provided by financing activities from continuing operations	0.5	0.4
Net cash flows of continuing operations	(15.4)	(14.3)
Net operating cash flows of discontinued operations	0.1	3.5
Net investing cash flows of discontinued operations	4.5	(0.5)
Effect of exchange rate changes on cash and cash equivalents	(0.1)	0.0
Net decrease in cash and cash equivalents	(10.9)	(11.3)
Eliminations
Condensed Financial Statements, Captions [Line Items]
Net cash provided by (used in) operating activities from continuing operations	0.0	0.0
Investing activities:
Investment in affiliated companies	2.3	11.9
Change in restricted cash		0.0
Capital expenditures	0.0	0.0
Proceeds from sale of assets		0.0
Net cash provided by (used in) investing activities from continuing operations	2.3	11.9
Financing activities:
Repayment of debt	0.0	0.0
Proceeds from exercise of restricted stock units, employee stock options, and employee stock purchase plan	0.0	0.0
Cash paid for contingent acquisition consideration		0.0
Financing from affiliated companies	(2.3)	(11.9)
Net cash provided by financing activities from continuing operations	(2.3)	(11.9)
Net cash flows of continuing operations	0.0	0.0
Net operating cash flows of discontinued operations	0.0	0.0
Net investing cash flows of discontinued operations	0.0	0.0
Effect of exchange rate changes on cash and cash equivalents	0.0
Net decrease in cash and cash equivalents	0.0	0.0
Parent Company
Condensed Financial Statements, Captions [Line Items]
Net cash provided by (used in) operating activities from continuing operations	(13.2)	(26.5)
Investing activities:
Investment in affiliated companies	(2.3)	0.0
Change in restricted cash		0.0
Capital expenditures	(0.5)	(0.3)
Proceeds from sale of assets		0.0
Net cash provided by (used in) investing activities from continuing operations	(2.8)	(0.3)
Financing activities:
Repayment of debt	0.0	0.0
Proceeds from exercise of restricted stock units, employee stock options, and employee stock purchase plan	1.0	1.6
Cash paid for contingent acquisition consideration		0.0
Financing from affiliated companies	0.0	11.9
Net cash provided by financing activities from continuing operations	1.0	13.5
Net cash flows of continuing operations	(15.0)	(13.3)
Net operating cash flows of discontinued operations	0.2	0.0
Net investing cash flows of discontinued operations	4.5	0.0
Effect of exchange rate changes on cash and cash equivalents	0.0
Net decrease in cash and cash equivalents	(10.3)	(13.3)
Subsidiary Guarantors on a Combined Basis
Condensed Financial Statements, Captions [Line Items]
Net cash provided by (used in) operating activities from continuing operations	1.5	13.7
Investing activities:
Investment in affiliated companies	0.0	(11.9)
Change in restricted cash		4.7
Capital expenditures	(2.0)	(4.5)
Proceeds from sale of assets		0.9
Net cash provided by (used in) investing activities from continuing operations	(2.0)	(10.8)
Financing activities:
Repayment of debt	0.0	0.0
Proceeds from exercise of restricted stock units, employee stock options, and employee stock purchase plan	0.0	0.0
Cash paid for contingent acquisition consideration		(0.7)
Financing from affiliated companies	2.3	0.0
Net cash provided by financing activities from continuing operations	2.3	(0.7)
Net cash flows of continuing operations	1.8	2.2
Net operating cash flows of discontinued operations	(0.1)	1.7
Net investing cash flows of discontinued operations	0.0	(0.3)
Effect of exchange rate changes on cash and cash equivalents	0.0
Net decrease in cash and cash equivalents	1.7	3.6
Non-Guarantors on a Combined Basis
Condensed Financial Statements, Captions [Line Items]
Net cash provided by (used in) operating activities from continuing operations	(0.7)	(2.3)
Investing activities:
Investment in affiliated companies	0.0	0.0
Change in restricted cash		0.0
Capital expenditures	(1.0)	(0.4)
Proceeds from sale of assets		0.0
Net cash provided by (used in) investing activities from continuing operations	(1.0)	(0.4)
Financing activities:
Repayment of debt	(0.5)	(0.5)
Proceeds from exercise of restricted stock units, employee stock options, and employee stock purchase plan	0.0	0.0
Cash paid for contingent acquisition consideration		0.0
Financing from affiliated companies	0.0	0.0
Net cash provided by financing activities from continuing operations	(0.5)	(0.5)
Net cash flows of continuing operations	(2.2)	(3.2)
Net operating cash flows of discontinued operations	0.0	1.8
Net investing cash flows of discontinued operations	0.0	(0.2)
Effect of exchange rate changes on cash and cash equivalents	(0.1)
Net decrease in cash and cash equivalents	$ (2.3)	$ (1.6)