Company: SPR
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001628280-25-021582
Chunk: 85

Company: Spirit AeroSystems Holdings, Inc.
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 1
Chunk 85
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7 and the total net U.S. valuation allowance was $1,012.3. The net U.S. deferred tax liability after valuation allowances was $3.6.  The Company has determined a valuation allowance on certain U.K. deferred tax assets is needed based upon cumulative losses generated in the U.K. Decreases in the valuation allowances recorded against U.K. deferred tax assets in the three-month period ended April 3, 2025 were $22.7. This is comprised of ($0.2) related to other comprehensive income (“OCI”) and $22.5 from continuing operations, including utilization of net operating losses. As of April 3, 2025, the total net U.K. deferred tax asset before the valuation allowance was $476.2 and the total net U.K. valuation allowance was $481.3. The net U.K. deferred tax liability after valuation allowance was $5.1. The Company files income tax returns in all jurisdictions in which it operates.In general, the Company records income tax expense each quarter based on its estimate as to the full year’s effective tax rate. Certain items, however, are given discrete period treatment and the tax effects for such items are therefore reported in the quarter that an event arises. Events or items that may give rise to discrete recognition include excess tax benefits with respect to share-based compensation, finalizing amounts in income tax returns filed, finalizing audit examinations for open tax years, expiration of statutes of limitations, and changes in tax law.   The (0.99%) effective tax rate for the three months ended April 3, 2025 differs from the (1.82%) effective tax rate for the same period of 2024 primarily due to changes in the valuation allowances recorded on U.S. and U.K. deferred tax assets. As the Company is currently 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 Company’s federal audit is conducted under the Internal Revenue Service Compliance Assurance Process (“CAP”) program. The Company will continue to participate in the CAP program for 2021 through 2025. The CAP program’s objective is to resolve issues in a timely, contemporaneous manner and eliminate the need for a lengthy post-filing examination. The Company has an open tax audit in the Kingdom of Morocco for tax years ending prior to the Company’s ownership of