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  "documentTitle": "Kratos Defense & Security Solutions (KTOS)",
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  "authorName": "Ben Axler",
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  "presentationDate": "2018-03-16 00:00:00",
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  "notes": "The slide uses a checkmark/cross matrix to expose the aggressive accounting practices of Kratos compared to industry peers.",
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      "text": "Kratos has historically used a very aggressive definition of backlog to sell investors on its investment merits.",
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      "text": "Kratos has historically used a very aggressive definition of backlog to sell investors on its investment merits. Its 10-K proclaims one of its \"Competitive Strengths\" is its \"Significant cash flow visibility driven by stable backlog\"; yet, a close look at how it used to define Total Backlog, specifically the Unfunded Backlog portion, shows that it includes both the value of unexercised options and revenue estimates for types of ID/IQ contracts. While this presentation is not unprecedented, it is certainly the most aggressive definition. No surprise, KTOS will be restating backlog sharply lower to comply with AUS 2014-09 adoption.",
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