Company: CODI-PB
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001345126-25-000015
Chunk: 265

Company: Compass Diversified Holdings
Filing Date: 2025-02-27
Form: 10-K
Item: Item 16
Chunk 265
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 Federal capital loss carryforwards of $47.5 million. The Federal capital loss carryforwards will expire in 2029 if not utilized. As of December 31, 2024, the Company had State capital loss carryforwards of $0.5 million. The State capital loss carryforwards will expire in 2044 if not utilized.As of December 31, 2024 and 2023, the Company had federal research and development tax credit carryforwards of $0.2 million and $1.7 million, respectively. The research and development tax credit carryforwards will expire beginning in 2044 if not utilized. As of December 31, 2024 and 2023, the Company had foreign tax credit carryforwards of $2.0 million and $2.8 million, respectively. The foreign tax credit carryforwards will expire beginning in 2031 if not utilized. As of December 31, 2024 and 2023, the Company had state tax credit carryforwards, consisting mostly of California business tax credits of $0.8 million and $1.1 million, respectively. The California business tax credit carryforwards will expire, if not utilized, beginning in 2025. As of  December 31, 2024 and 2023, the Company had a valuation allowance related to the realization of domestic and foreign net operating losses, domestic and foreign tax credits and the limitation on the deduction of interest expense of $36.6 million and $6.8 million, respectively. A valuation allowance is provided whenever it is more likely than not that some or all of deferred assets recorded may not be realized.  The reconciliation between the Federal Statutory Rate and the effective income tax rate for 2024, 2023 and 2022 are as follows:Year ended December 31,202420232022United States Federal Statutory Rate21.0 %21.0 %21.0 %State income taxes (net of Federal benefits)5.6 (14.3)7.7 Foreign income taxes 4.4 (19.3)3.8 Impact of subsidiary employee stock options0.5 16.0 0.2 Non-deductible acquisition costs0.5 0.1 0.9 Impairment expense1.6 (70.7)— Non-recognition of various carryforwards