Company: SPR
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001628280-25-021582
Chunk: 63

Company: Spirit AeroSystems Holdings, Inc.
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 1
Chunk 63
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1,702.8  Remaining Performance ObligationsUnsatisfied, or partially unsatisfied, performance obligations that are expected to be recognized in the future are noted in the table below. The Company expects options to be exercised in addition to the amounts presented below:Remaining in 2025202620272028 and afterUnsatisfied performance obligations$3,687.9 $7,821.5 $4,184.1 $764.3 

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Table of ContentsSpirit AeroSystems Holdings, Inc. Notes to the Condensed Consolidated Financial Statements (unaudited)(U.S. Dollars in millions other than per share amounts)

8.  Inventory

Inventory consists of raw materials used in the production process, work-in-process, which is direct material, direct labor, overhead and purchases, and capitalized pre-production costs. Raw materials are stated at lower of cost (principally on an actual or average cost basis) or net realizable value. Capitalized pre-production costs include certain contract costs, including applicable overhead, incurred before a product is manufactured on a recurring basis. These costs are typically amortized over a period that is consistent with the satisfaction of the underlying performance obligations to which these relate. April 3,2025December 31,2024Raw materials$477.3 $468.7 Work-in-process(1)1,445.1 1,333.7 Finished goods80.1 71.0 Product inventory2,002.5 1,873.4 Capitalized pre-production17.3 18.3 Total inventory, net$2,019.8 $1,891.7 (1)Work-in-process inventory includes direct labor, direct material, overhead, and purchases on contracts for which revenue is recognized at a point in time as well as sub-assembly parts that have not been issued to production on contracts for which revenue is recognized over time using an input method. For the periods ended April 3, 2025 and December 31, 2024, work-in-process inventory includes $519.7 and $491.8, respectively, of costs incurred in anticipation of specific contracts and no impairments were recorded in the periods.Product inventory, summarized in the table above, is shown net of valuation reserves of $164.1 and $161.5 as of April 3, 2025 and December 31, 2024, respectively.  Excess capacity and abnormal production costs are