Company: SPR
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001364885-25-000011
Chunk: 17

Company: Spirit AeroSystems Holdings, Inc.
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 2
Chunk 17
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15 Debt to our condensed consolidated financial statements included in Item 1 of Part I of this Quarterly Report.

Other Income (Expense), net.  Other income, net for the three months ended October 2, 2025 was $14.3 million, compared to other expense of ($33.0) million for the same period in the prior year, an increase in income of $47.3 million. The increase in other income was primarily due to foreign currency gains of $9.4 million recognized in the current period, versus losses of ($28.0) million in the same period of the prior year, in addition to a reduction in the loss on sale of accounts receivables. 

Benefit from (Provision for) Income Taxes.  Our reported tax rate includes two principal components: an expected annual tax rate and discrete items resulting in additional provisions or benefits that are recorded in the quarter that an event arises. Events or items that could give rise to discrete recognition include excess tax benefit in respect of share-based compensation, finalizing audit examinations for open tax years, statute of limitations expiration, or a change in tax law.

Deferred income tax assets and liabilities are recognized for future income tax consequences attributable to differences between the financial statement carrying amounts for existing assets and liabilities and their respective tax bases. A valuation allowance is recorded to reduce deferred income tax assets to an amount that in management’s opinion will ultimately be realized. We have reviewed our material deferred tax assets to determine whether or not a valuation allowance was necessary. Based on 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