Company: CODI-PB
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001345126-25-000015
Chunk: 272

Company: Compass Diversified Holdings
Filing Date: 2025-02-27
Form: 10-K
Item: Item 16
Chunk 272
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 sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. Certain of our subsidiaries have leases that contain both fixed rent costs and variable rent costs based on achievement of certain operating metrics. The variable lease expense was not a material component of our total lease expense for the years ending December 31, 2024, 2023 or 2022.

F-52

COMPASS DIVERSIFIED HOLDINGSNOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

The maturities of lease liabilities at December 31, 2024 having an initial or remaining non-cancelable term of one year or more are as follows (in thousands):OperatingFinanceTotal2025$53,048 $719 $53,767 202653,868 719 54,587 202745,721 7,040 52,761 202835,389 — 35,389 202926,003 — 26,003 Thereafter70,674 — 70,674 Total undiscounted lease payments$284,703 $8,478 $293,181 Less: Interest67,946 1,570 69,516 Present value of lease liabilities$216,757 $6,908 $223,665 The Company’s rent expense for the fiscal years ended December 31, 2024, 2023 and 2022 totaled $53.9 million, $50.3 million and $41.9 million, respectively. The Company entered into a finance lease during the year ended December 31, 2024. The amortization and interest related to this lease was not material in 2024.The calculated amount of the right-of-use assets and lease liabilities in the table above are impacted by the length of the lease term and discount rate used to present value the minimum lease payments. The Company's lease agreements often include one or more options to renew at the company's discretion. In general, it is not reasonably certain that lease renewals will be exercised at lease commencement and therefore lease renewals are not included in the lease term. As the discount rate is rarely determinable, the Company utilizes the incremental borrowing rate of the subsidiary entering into the lease arrangement, on a collateralized basis, over a similar term as adjusted for any country specific risk.  The weighted average remaining lease terms and discount rates for all of our leases were as follows:Lease Term and Discount RateDecember 31, 2024