Company: SPR
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001364885-25-000011
Chunk: 16

Company: Spirit AeroSystems Holdings, Inc.
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 2
Chunk 16
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 Research and Development.  Current period SG&A was lower than in the prior year period by $53.3 million, primarily due to 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 as well as reduced incentive compensation accruals, partially offset by certain employee retention-related expenditures outlined in the Merger Agreement of $2.3 million. Research and development expenses decreased for the three months ended October 2, 2025, as compared to the same period in the prior year primarily due to reduced project spending year-over-year.  

Restructuring Costs.  There were no restructuring costs recorded during the three months ended October 2, 2025. Restructuring costs of ($0.1) million were recorded during the three months ended September 26, 2024.

Operating (Loss) Income.  Operating loss for the three months ended October 2, 2025 was ($646.5) million, an increase of $296.4 million, compared to operating loss of ($350.1) million for the same period in the prior year. The variance reflects the reversal of the ($132.5) million loss that was recorded in the second quarter of 2025 for a valuation allowance on assets held for sale in relation to the Company’s Airbus Business due to the subsequent deterioration of the balance sheet in addition to the recording of a ($109.6) million loss for a valuation allowance on assets held for sale in relation to the Company’s Malaysia Business, resulting in a net reversal of loss of $22.9 reflected within (Gain) loss on dispositions of businesses, net.

Interest Expense and Financing Fee Amortization.  Interest expense and financing fee amortization for the three months ended October 2, 2025 increased $3.7 million compared to the same period in the prior year, driven by the addition of the Boeing $350 million advance agreement and the Amended and Restated Bridge Credit Agreement. The three months ended October 2, 2025 includes $91.6 million of interest and fees paid or accrued in connection with long-term debt and $6.2 million in amortization of deferred financing costs and original issue discount, compared to $81.2 million of interest and fees paid or accrued in connection with long-term debt and $6.5 million in amortization of deferred financing costs and original issue discount for the same period in the prior year. See also Note