Company: SPR
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001628280-25-021582
Chunk: 15

Company: Spirit AeroSystems Holdings, Inc.
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 2
Chunk 15
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 3, 2025. The net valuation allowance was increased by $135.7 million in the U.S. and decreased by $22.7 million in the U.K. for the three months ended April 3, 2025.

The income tax provision for the three months ended April 3, 2025 includes $4.8 million for federal taxes, $1.1 million for state taxes and $0.1 million for foreign taxes. The income tax provision for the three months ended March 28, 2024 includes $1.2 million for federal taxes, ($1.1) million for state taxes and $10.9 million for foreign taxes. The effective tax rate for the three months ended April 3, 2025 is (0.99%) as compared to (1.82%) for the same period in 2024. As we are reporting a pre-tax loss for the three months ended April 3, 2025, an increase in the effective tax rate results in an increase of income tax benefits while a decrease in the rate results in a reduction of income tax benefits.  

The decrease from the U.S. statutory tax rate is attributable primarily to valuation allowances on deferred tax assets.

49

Merger Agreement.  Other than transaction expenses associated with the Merger of $21.6 million, the Merger Agreement did not affect the Company’s consolidated financial statements for the three months ended April 3, 2025.

Segments.  The following tables show segment revenues and operating loss for the three months ended April 3, 2025 and March 28, 2024:

Three Months Ended April 3, 2025CommercialDefense & SpaceAftermarketCorporate and OtherConsolidated($ in millions)Net revenues$1,161.6 $261.0 $99.2 $— $1,521.8 Cost of sales(1,585.3)(266.2)(84.7)— (1,936.2)Excess capacity costs(41.1)(5.6)— — (46.7)Segment operating (loss) income$(464.8)$(10.8)$14.5 $— $(461.1)Selling, general and administrative— — — (91.8)(91.8)Research and development— — — (14.5)(14.5)Gain on disposition of businesses (1)— —