Company: CODI-PB
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001345126-25-000015
Chunk: 289

Company: Compass Diversified Holdings
Filing Date: 2025-02-27
Form: 10-K
Item: Item 16
Chunk 289
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 2% the Company’s adjusted net assets when the adjusted net assets are less than or equal to $3.5 billion (the “Initial Threshold Fee”), (ii) the Initial Threshold Fee plus 1.25% of the amount of adjusted net assets exceeding $3.5 billion when the adjusted net assets are more than $3.5 billion but less than $10 billion, or (iii) 1.5% of the adjusted net assets when the adjusted net assets are $10 billion or more. The incentive management fee will be 0.25% of the amount of adjusted net assets exceeding $3.5 billion only when the adjusted net assets are more than $3.5 billion but less than $10 billion and only if the Company’s annualized internal rate of return on equity for the trailing three-years, exceeds 12%. Any incentive management fee paid to the Manager may only be distributed by the Manager among the then-current Employees (as defined in the MSA) of the Manager. Such incentive management fee is subject to approval by the Compensation Committee of the Board. The Amendment also eliminates the payment of integration services fee by the Company’s subsidiaries to the Manager and excludes excess cash held by the Company and the Company’s subsidiaries, subject to certain exceptions, from the calculation of the adjusted net assets of the Company, along with certain other changes. 

F-64

SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS

Additions(in thousands)Balance at beginningof YearCharge to costsand expenseOther (1)DeductionsBalance atend of YearSales allowance accounts - 2024$7,201 $2,051 $199 $2,963 $6,488 Sales allowance accounts - 2023$8,308 $134 $(41)$1,200 $7,201 Sales allowance accounts - 2022$11,154 $(1,466)$148 $1,528 $8,308 Valuation allowance for deferred tax assets - 2024$6,816 $30,075 $— $292 $36,599 Valuation allowance for deferred tax assets - 2023$17,162 $1,578 $— $11,924 $6,816 Valuation allowance for deferred tax assets - 2022$6,813 $10,