Company: SPR
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001628280-25-037839
Chunk: 72

Company: Spirit AeroSystems Holdings, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 72
---
 satisfaction of performance obligations. Contract liabilities primarily consist of cash received on contracts for which revenue has been deferred since the receipts are in excess of transaction price resulting from the allocation of consideration based on relative standalone selling price to future units (including those under option that the Company believes are likely to be exercised) with prices that are lower than standalone selling price. These contract liabilities will be recognized earlier if the options are not fully exercised, or immediately, if the contract is terminated prior to the options being fully exercised.July 3, 2025December 31, 2024ChangeContract assets$464.6 $777.9 $(313.3)Contract liabilities(314.6)(447.7)133.1 Net contract assets (liabilities)$150.0 $330.2 $(180.2)For the period ended July 3, 2025, the decrease in contract assets reflects the net impact of less over time revenue recognition in relation to billed revenues during the period as well as impacts related to the improvements Spirit has made to its 

16

Table of ContentsSpirit AeroSystems Holdings, Inc. Notes to the Condensed Consolidated Financial Statements (unaudited)(U.S. Dollars in millions other than per share amounts)

production and quality processes leading to higher output of physical deliveries during the first half of 2025. These improvements came as a result of the impact of 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 buildup of undelivered units in Wichita, KS; however, the Company has begun to reduce that buildup resulting in a reduction in contract assets from their peak in the third quarter of 2024. The decrease in contract liabilities reflects the net impact of less deferred revenues recorded in excess of revenue recognized during the period. The Company recognized $86.6 of revenue that was included in the contract liability balance at the beginning of the period.June 27, 2024December 31, 2023ChangeContract assets$1,021.3 $522.9 $498.4 Contract liabilities(346.5)(353.9)7.4 Net contract assets (liabilities)$674.8 $169.0 $505.8 For the period ended June 27, 2024, the increase in contract assets reflects the net impact of more over time revenue recognition in relation to billed revenues during the period