Company: CODI-PB
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001345126-25-000015
Chunk: 200

Company: Compass Diversified Holdings
Filing Date: 2025-02-27
Form: 10-K
Item: Item 16
Chunk 200
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 operating margins as well as the discount rate used. This required a high degree 

F-4

of auditor judgment and an increased extent of effort, including the involvement of professionals with specialized skill and knowledge, in auditing these assumptions made by management. 

Our audit procedures related to the valuation of the tradename included the following, among others:

•We tested the design and operating effectiveness of controls relating to the determination of the tradename’s fair value, including controls over the development of revenue growth rates, operating margins and discount rate assumptions, as well as the controls around the appropriateness of the valuation model used.

•We evaluated the valuation methodology and discount rate utilized by management with the assistance of our valuation professionals with specialized skills and knowledge.

•We tested the forecasted revenues and operating margins by assessing the reasonableness of management’s forecasts compared to historical results and forecasted market and industry trends.

/s/ GRANT THORNTON LLP

We have served as the Company’s auditor since 2005.

New York, New York 

February 27, 2025

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COMPASS DIVERSIFIED HOLDINGSCONSOLIDATED BALANCE SHEETS(in thousands)December 31,2024December 31,2023AssetsCurrent assets:Cash and cash equivalents$59,727 $446,684 Accounts receivable, net444,386 308,183 Inventories, net962,408 723,194 Prepaid expenses and other current assets101,129 88,844 Current assets of discontinued operations— 36,915 Total current assets1,567,650 1,603,820 Property, plant and equipment, net244,746 191,283 Goodwill982,253 859,907 Intangible assets, net1,049,186 879,078 Other non-current assets208,587 195,010 Non-current assets of discontinued operations— 87,883 Total assets$4,052,422 $3,816,981 Liabilities and stockholders’ equityCurrent liabilities:Accounts payable$104,304 $91,089 Accrued expenses197,829 151,443 Due to related parties (refer to Note P)18,036 16,025 Current portion, long-term debt15,000 10,000 Other current liabilities49,617 34,812 Current liabilities of discontinued operations— 8,986 Total current liabilities384,786 312