Company: SPR
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001364885-25-000011
Chunk: 148

Company: Spirit AeroSystems Holdings, Inc.
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 1
Chunk 148
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 evaluation of both the positive and negative evidence available, management determined that it was necessary to continue to maintain a valuation allowance against nearly all of its net U.S. and U.K. deferred tax assets as of October 2, 2025. The net valuation allowance was increased by $123.1 million in the U.S. and increased by $28.4 million in the U.K. for the three months ended October 2, 2025.

The income tax benefit for the three months ended October 2, 2025 includes $2.0 million for federal taxes, $3.6 million for state taxes and ($3.0) million for foreign taxes. The income tax provision for the three months ended September 26, 2024 includes ($0.1) million for federal taxes, ($2.6) million for state taxes and ($0.1) million for foreign taxes. The effective tax rate for the three months ended October 2, 2025 is 0.36% as compared to (0.60%) for the same period in 2024. As we are reporting a pre-tax loss for the three months ended October 2, 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.

Merger Agreement.  Other than transaction expenses associated with the Merger of $27.1 million, the Merger Agreement did not affect the Company’s consolidated financial statements for the three months ended October 2, 2025. Transaction expenses associated with the Merger were $28.8 million for the same period in the prior year.

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Segments.  The following tables show segment revenues and operating loss for the three months ended October 2, 2025 and September 26, 2024:

Three Months Ended October 2, 2025CommercialDefense & SpaceAftermarketCorporate and OtherConsolidated($ in millions)Net revenues$1,170.1 $304.1 $111.2 $— $1,585.4 Cost of sales(1,740.4)(307.8)(101.6)— (2,149.8)Excess capacity costs(43.1)(12.1)— — (55.2)Segment operating (loss) income$(613.