Company: SPR
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001364885-25-000011
Chunk: 154

Company: Spirit AeroSystems Holdings, Inc.
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 1
Chunk 154
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 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, 2025 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