Company: CODI-PB
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001345126-25-000015
Chunk: 238

Company: Compass Diversified Holdings
Filing Date: 2025-02-27
Form: 10-K
Item: Item 16
Chunk 238
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 businesses during the year ended December 31, 2024 includes the acquisition of The Honey Pot Co. by the Company, and an add-on acquisition at Altor.Balance at January 1, 2023Acquisitions/Measurement Period Adjustments Goodwill ImpairmentBalance at December 31, 20235.11$92,966 $— $— $92,966 BOA254,153 — — 254,153 Lugano86,337 — — 86,337 PrimaLoft291,150 (804)(57,810)232,536 Velocity Outdoor39,773 — (31,591)8,182 Altor Solutions91,130 — — 91,130 Arnold39,267 — — 39,267 Sterno55,336 — — 55,336 Total$950,112 $(804)$(89,401)$859,907 Approximately $227.9 million of goodwill is deductible for income tax purposes at December 31, 2024.Annual Impairment TestingThe Company uses a qualitative approach to test goodwill and indefinite lived intangible assets for impairment by first assessing qualitative factors to determine whether it is more-likely than-not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform quantitative goodwill impairment testing. 2024 Annual Impairment TestingFor the Company's annual impairment testing at March 31, 2024, the Company performed a qualitative assessment of our reporting units. The results of the qualitative analysis indicated that it was more-likely-than-not that the fair value of each of our reporting units except Velocity exceeded their carrying value. Based on our analysis, the Company determined that the Velocity operating segment required quantitative testing because we could not conclude that the fair value of this reporting unit significantly exceeded the carrying value based on qualitative factors alone. The Company performed a quantitative test of Velocity and the results of the testing indicated that the fair value of Velocity did not exceed the carrying value, resulting in goodwill impairment expense of $8.2 million as of March 31, 2024.

F-31

COMPASS DIVERSIFIED HOLDINGSNOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

2023 Annual Impairment Testing The Company determined that the Velocity reporting unit required additional quantitative testing because we could not conclude that the fair value of the reporting unit