Company: SPR
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001364885-25-000011
Chunk: 24

Company: Spirit AeroSystems Holdings, Inc.
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 2
Chunk 24
---
5 increased $40.1 million compared to the same period in the prior year, driven by the addition of the Boeing $350.0 million advance agreement and the Amended and Restated Bridge Credit Agreement. The nine months ended October 2, 2025 includes $267.3 million of interest and fees paid or accrued in connection with long-term debt and $23.1 million in amortization of deferred financing costs and original issue discount, compared to $231.1 million of interest and fees paid or accrued in connection with long-term debt and $12.2 million in amortization of deferred financing costs and original issue discount for the same period in the prior year. See also Note 15 Debt to our condensed consolidated financial statements included in Item 1 of Part I of this Quarterly Report. 

Other Income (Expense), net.  Other expense, net for the nine months ended October 2, 2025 was ($29.9) million, compared to other expense of $(30.3) million for the same period in the prior year. The decrease in other expense was primarily due to the reduction in the loss on sale of accounts receivable partially offset by an increase in foreign currency losses in the current year.

Provision for Income Taxes.  Our reported tax rate includes two principal components: an expected annual tax rate and discrete items resulting in additional provisions or benefits that are recorded in the quarter that an event arises. Events or items that could give rise to discrete recognition include excess tax benefit in respect of share-based compensation, finalizing audit examinations for open tax years, statute of limitations expiration, or a change in tax law. 

Deferred income tax assets and liabilities are recognized for future income tax consequences attributable to differences between the financial statement carrying amounts for existing assets and liabilities and their respective tax bases. A valuation allowance is recorded to reduce deferred income tax assets to an amount that in management's opinion will ultimately be realized. We have reviewed our material deferred tax assets to determine whether or not a valuation allowance was necessary. Based on evaluation of both the positive and negative evidence available, management determined that it was necessary to continue to maintain a valuation allowance against nearly all of its net U.S. and U.K. deferred tax assets as of October 2, 2025. The net valuation allowance increased by $393.3 million in the U.S. and increased by $109.2 million in the U.K. for the nine months ended October 2, 2025.

The income tax provision for the nine months ended October