Company: SPR
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001364885-25-000011
Chunk: 104

Company: Spirit AeroSystems Holdings, Inc.
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 1
Chunk 104
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 positive and negative evidence. The weight given to the positive and negative evidence is commensurate with the extent the evidence may be objectively verified. As such, it is generally difficult for positive evidence regarding projected future taxable income exclusive of reversing taxable temporary differences to outweigh objective negative evidence of recent financial reporting losses.Based on these criteria and the relative weighting of both the positive and negative evidence available, and in particular the activity surrounding our prior earnings history, including the forward losses previously recognized in the U.S., the Company has recorded a valuation allowance against U.S. deferred tax assets. Increases in the valuation allowances recorded against U.S. deferred tax assets in the nine months ended October 2, 2025 were $393.3. This is comprised of $0.0 related to other comprehensive income (“OCI”) and $393.3 from continuing operations. As of October 2, 2025, the total net U.S. deferred tax asset before the valuation allowance was $1,241.9 and the total net U.S. valuation allowance was $1,269.8. The net U.S. deferred tax liability after valuation allowances was $27.9.  The Company has determined a valuation allowance on certain U.K. deferred tax assets is needed based upon cumulative losses generated in the U.K. Increases in the valuation allowances recorded against U.K. deferred tax assets in the nine-month period ended October 2, 2025 were $109.2. This is comprised of ($0.6) related to other comprehensive income (“OCI”) and $109.8 from continuing operations, including utilization of net operating losses. As of October 2, 2025, the total net U.K. deferred tax asset before the valuation allowance was $608.0 and the total net U.K. valuation allowance was $613.2. The net U.K. deferred tax liability after valuation allowance was $5.2. The Company files income tax returns in all jurisdictions in which it operates.

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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)

In general, the Company records income tax expense each quarter based on its estimate as to the full year’s effective tax rate. Certain items, however, are given discrete period treatment and the tax effects for such items are therefore reported in the quarter that an event arises. Events or items that may give rise to discrete recognition include excess tax benefits with respect to share