Company: CODI-PB
Filing Date: 2025-12-08
Form Type: 10-K/A
Source: 0001345126-25-000078
Chunk: 195

Company: Compass Diversified Holdings
Filing Date: 2025-12-08
Form: 10-K/A
Chunk 195
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     | $           |  37,269 |     | $           | 13,842 |
| Interest on Senior Notes                |     |                          |  67,500 |     |             |  67,500 |     |             | 67,500 |
| Unused fee on Revolving Credit Facility |     |                          |   1,840 |     |             |   1,998 |     |             |  1,913 |
| Other interest expense(1)               |     |                          |  16,522 |     |             |   5,076 |     |             |  2,053 |
| Interest income                         |     |                          |  -2,045 |     |             |  -1,951 |     |             |    -49 |
| Interest expense, net                   |     | $                        | 122,802 |     | $           | 109,892 |     | $           | 85,259 |

(1) Other interest expense represents interest incurred by our subsidiaries. Other interest expense in each of the years ended December 31, 2024, 2023 and 2022 primarily reflects interest associated with third-party financing arrangements at our Lugano subsidiary.

Income Taxes (as restated)

Effective September 1, 2021, the Trust elected to be treated as a corporation for U.S. federal income tax purposes (the “tax reclassification”). Prior to the tax reclassification, the Trust had been taxed as a partnership for U.S. federal income tax purposes since January 1, 2007. The LLC was treated as a partnership prior to the Trust’s tax reclassification and it will continue to be treated as a partnership following the Trust’s tax reclassification.

Each of the Company’s majority owned subsidiaries are subject to Federal, state and in some cases, foreign income taxes. We recorded an income tax provision of $18.6 million with an annual effective rate of (6.0)% during the year ended December 31, 2024, an income tax provision of $8.2 million with an annual effective tax rate of (3.1)% during the year ended December 31, 2023, and an income tax provision of $29.5 million with an effective tax rate of 25.9% during the year ended December 31, 2022.

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The components of our income tax (benefit) expense as a percentage of