Company: SPR
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001364885-25-000011
Chunk: 23

Company: Spirit AeroSystems Holdings, Inc.
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 2
Chunk 23
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 Research and Development.  SG&A expense was $19.3 million lower for the nine months ended October 2, 2025, compared to the same period in the prior year. The variance was driven by the reversal of $45.5 million of accrued liabilities related to the favorable resolution of litigation with a former CEO in the third quarter of 2025 as well as reduced incentive compensation accruals in the current year, partially offset by the $23.2 million impairment charge for customer relationship intangible assets related to Airbus recorded in the second quarter of 2025, increased purchased services for merger-related activities and certain employee retention-related expenditures outlined in the Merger Agreement of $8.7 million. Greater research and development activity drove research and development expense $1.6 million higher for the nine months ended October 2, 2025, compared to the same period in the prior year.

Restructuring Costs.  There were no restructuring costs recorded for the nine months ended October 2, 2025. Restructuring costs of $0.7 million were recorded during the nine months ended September 26, 2024, driven by a reduction in hourly production workforce due to high inventory levels.

Operating (Loss) Income.  Operating loss for the nine months ended October 2, 2025 was ($1,614.3) million, an increase of $405.3 million, compared to operating loss of ($1,209.0) million for the same period in the prior year. The increase primarily reflects the higher forward losses recorded in the current year, the $109.6 million charge recorded in the third quarter of 2025 in (Gain) loss on dispositions of businesses, net representing the difference between the current carrying value of the Malaysia Business held for sale group and its estimated sales price, the $23.2 million customer relationship intangible impairment charge recorded in the second quarter of 2025 reflected in Selling, general and administrative expense, the reduction in Boeing program production and margins, higher excess capacity costs, and the specific warranty charge recorded in the first quarter of 2025, partially offset by the gain recorded on the sale of FMI, the reversal of $45.5 million of accrued liabilities related to the favorable resolution of litigation with a former CEO in the third quarter of 2025, and lower negative cumulative catch-up adjustments. 

Interest Expense and Financing Fee Amortization.  Interest expense and financing fee amortization for the nine months ended October 2, 202