Company: SPR
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001364885-25-000011
Chunk: 103

Company: Spirit AeroSystems Holdings, Inc.
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 1
Chunk 103
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 became effective on October 1, 2017 and was amended and restated on February 26, 2024. Under the amended plan, the per-share purchase price for Holdings Common Stock purchased under the ESPP is 85% of the lower of (a) the fair market value of a share on the first day of the applicable offering period or (b) the fair market value of a share on the applicable purchase date.The Company recognized no stock compensation expense related to the ESPP for the three and nine months ended October 2, 2025, respectively. The Company recognized $0.8 and $2.0 of stock compensation expense related to the ESPP for the three and nine months ended September 26, 2024, respectively.Further purchases under the ESPP after the offering period that closed on September 30, 2024 were suspended pursuant to the Merger Agreement. If the Merger is completed, the ESPP will be terminated. See Note 1 Organization, Basis of Interim Presentation and Recent Developments.

18. Income Taxes

    At interim periods, income tax related to ordinary income or loss is typically computed at an estimated annual effective tax rate (“AETR”), and income tax related to all other items is typically computed individually and recognized when the items occur (i.e., discretely). In the second quarter of 2025, the Company determined that a reliable estimate of the AETR for one of its non-U.S. subsidiaries could not be made, primarily due to the sensitivity of the estimated AETR to changes in forecasted pre-tax earnings in relation to significant permanent differences. As a result, the income tax provision for the six months ended July 3, 2025 was calculated based on 2025 year-to-date results for one subsidiary, and an estimate of the AETR, adjusted for discrete items, for all other entities. In the third quarter of 2025, the Company determined that a reliable estimate of the AETR for the non-U.S. subsidiaries could be made and adjusted the tax provision calculation to use the estimated AETR, adjusted for discrete items for the nine months ended October 2, 2025. Deferred tax assets are periodically evaluated to determine their recoverability and whether a valuation allowance is necessary. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. When determining the amount of net deferred tax assets that are more likely than not to be realized, the Company assesses all available