KRATOS DEFENSE & SECURITY SOLUTIONS, INC. Leases Disclosure
| December 28, 2025 | December 29, 2024 | December 31, 2023 | ||||||||||||||||||
| Amortization of right of use assets - finance leases | $ | 4.1 | $ | 3.2 | $ | 3.1 | ||||||||||||||
| Interest expense on lease liabilities - finance leases | 4.1 | 3.3 | 3.1 | |||||||||||||||||
| Operating lease cost (expense resulting from amortization of total lease payments) | 14.5 | 13.9 | 14.0 | |||||||||||||||||
| Short-term lease cost | 1.5 | 1.4 | 1.2 | |||||||||||||||||
| Variable lease cost (cost excluded from lease payments) | — | — | 0.1 | |||||||||||||||||
| Sublease income | (0.2) | (0.2) | — | |||||||||||||||||
Total lease cost | $ | 24.0 | $ | 21.6 | $ | 21.5 | ||||||||||||||
| December 28, 2025 | December 29, 2024 | |||||||||||||
| Operating Leases: | ||||||||||||||
Operating lease right-of-use assets | $ | 43.4 | $ | 37.6 | ||||||||||
Current portion of operating lease liabilities | $ | 12.8 | $ | 11.3 | ||||||||||
Operating lease liabilities, net of current portion | $ | 33.8 | $ | 29.8 | ||||||||||
| Finance leases: | ||||||||||||||
| $ | 86.2 | $ | 57.6 | |||||||||||
Other current liabilities | $ | 3.4 | $ | 1.9 | ||||||||||
Other long-term liabilities | $ | 95.8 | $ | 64.4 | ||||||||||
| December 28, 2025 | December 29, 2024 | December 31, 2023 | ||||||||||||||||||
| Finance lease - cash paid for interest | $ | 3.9 | $ | 3.3 | $ | 3.1 | ||||||||||||||
| Finance lease - financing cash flows | $ | 1.8 | $ | 1.4 | $ | 1.5 | ||||||||||||||
| Operating lease - operating cash flows (fixed payments) | $ | 14.9 | $ | 14.3 | $ | 14.1 | ||||||||||||||
| December 28, 2025 | December 29, 2024 | ||||||||||||||||
| Operating lease liabilities arising from obtaining right-of-use assets | $ | 18.9 | $ | 3.7 | |||||||||||||
| Finance lease liabilities arising from obtaining right-of-use assets | $ | 34.8 | $ | 15.4 | |||||||||||||
| Weighted-average remaining lease term (in years): | |||||||||||||||||
Operating leases | 4.46 | 4.03 | |||||||||||||||
Finance leases | 14.96 | 13.81 | |||||||||||||||
| Weighted-average discount rate: | |||||||||||||||||
Operating leases | 5.32 | % | 4.99 | % | |||||||||||||
Finance leases | 6.17 | % | 6.35 | % | |||||||||||||
| Operating Leases | Finance Leases | ||||||||||
2026 | $ | 14.8 | $ | 9.1 | |||||||
2027 | 12.9 | 9.6 | |||||||||
2028 | 10.4 | 9.8 | |||||||||
2029 | 6.5 | 9.8 | |||||||||
2030 | 3.4 | 9.3 | |||||||||
| Thereafter | 4.8 | 105.7 | |||||||||
Total lease payments | 52.8 | 153.3 | |||||||||
| Less: imputed interest | (6.2) | (54.1) | |||||||||
Total present value of lease liabilities | $ | 46.6 | $ | 99.2 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 23, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 13, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 22, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 24, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2016 | Feb 27, 2017 | |
| 2015 | Mar 11, 2016 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.