Company: SPR
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001628280-25-021582
Chunk: 93

Company: Spirit AeroSystems Holdings, Inc.
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 1
Chunk 93
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 projections are subject to significant judgment. The amount of the reasonably possible disputed warranty claims in excess of the specific warranty provision was $3.4 as of April 3, 2025 and December 31, 2024. 

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Table of ContentsSpirit AeroSystems Holdings, Inc. Notes to the Condensed Consolidated Financial Statements (unaudited)(U.S. Dollars in millions other than per share amounts)

The following is a roll forward of the service warranty and extraordinary rework balance at April 3, 2025: Balance, December 31, 2024$86.7 Charges (release) to costs and expenses116.2 Payouts(1.8)Exchange rate0.2 Balance, April 3, 2025$201.3 

21.  Other Income (Expense), Net

 Other income (expense), net is summarized as follows: For the ThreeMonths EndedApril 3,2025March 28,2024Kansas Development Finance Authority bond$1.0 $0.9 Interest income1.7 4.3 Foreign currency (losses) gains (1)(23.4)3.1 Gain on foreign currency forward contract 0.9 1.2 Loss on sale of accounts receivable(3.0)(10.6)Pension income1.9 3.6 Other1.0 (0.2)Total$(19.9)$2.3  

(1)   Foreign currency gains and losses are due to the impact of movement in foreign currency exchange rates on long-term contractual rights/obligations, as well as cash and both trade and intercompany receivables/payables that are denominated in a currency other than the entity’s functional 

22.  Customer FinancingAs described in the Form 8-K filed by us on November 12, 2024, on November 8, 2024, we entered into an advance payments agreement with Boeing to provide up to $350.0 of cash advances for the sole purpose of producing and maintaining readiness to produce products as defined in existing contracts at the rates required by Boeing. These advances were intended to address Spirit’s higher levels of inventory and contract assets, lower operational cash flows, decrease in expected deliveries to Boeing and higher factory costs to maintain rate readiness, attributed to product quality verification process enhancements (including moving such process from Renton, Washington, to Wichita, Kansas),