Company: SPR
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001628280-25-021582
Chunk: 59

Company: Spirit AeroSystems Holdings, Inc.
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 1
Chunk 59
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 secured, foreign currency impacts, and supply chain cost growth on the A350 and A220 programs, additional labor and supply chain cost growth on the B787 program, and increased costs related to factory performance on the B767 program. The forward losses on the Airbus A350 and A220 programs include net incremental losses for anticipated performance obligations beyond 2026 of $168.3 related to the incremental firm orders Airbus secured. The unfavorable cumulative catch-up adjustments primarily relate to increased production costs associated with changes implemented by Boeing in March 2024 to introduce a new product verification process in Wichita, KS. This change in business process delayed delivery acceptances and caused a build up of undelivered units in Wichita, KS. 

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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)

Changes in estimates are summarized below:  

For the Three Months EndedChanges in EstimatesApril 3, 2025March 28, 2024(Unfavorable) Favorable Cumulative Catch-up Adjustment by SegmentCommercial$(16.5)$(38.9)Defense & Space8.8 (0.3)Aftermarket— — Total (Unfavorable) Favorable Cumulative Catch-up Adjustment$(7.7)$(39.2)Changes in Estimates on Loss Programs (Forward Loss) by SegmentCommercial$(243.1)$(493.8)Defense & Space(50.3)(1.6)Aftermarket— — Total Changes in Estimates (Forward Loss) on Loss Programs$(293.4)$(495.4)Total Change in Estimate$(301.1)$(534.6)EPS Impact (diluted per share based upon applicable forecasted effective tax rate)$(2.59)$(4.68) 

5.  Accounts Receivable and Allowance for Credit Losses

Accounts Receivable, netAccounts receivable represent the Company’s unconditional rights to consideration, subject to the payment terms of the contract, for which only the passage of time is required before payment. Unbilled receivables are reflected under contract assets on the Condensed Consolidated Balance Sheets. See also Allowance for Credit Losses, below.Accounts receivable, net consists of the following:April 3,2025December 31,2024Trade receivables$498.4 $371.9 Other39.4 33.2 Less