Company: CODI-PB
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001345126-25-000015
Chunk: 63

Company: Compass Diversified Holdings
Filing Date: 2025-02-27
Form: 10-K
Item: Item 7
Chunk 63
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 tax rate of (102)% during the year ended December 31, 2023, and $41.4 million in income tax benefit with an effective tax rate of 71.8% during the year ended December 31, 2022. 

107

The components of our income tax (benefit) expense as a percentage of income from continuing operations before income taxes for the years ended December 31, 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 taxes4.4 (19.3)3.8 Impairment expense1.6 (70.7)— Impact of subsidiary employee stock options0.5 16.0 0.2 Non-deductible acquisition costs0.5 0.1 0.9 Non-recognition of various carryforwards at subsidiaries22.4 (6.7)27.6 United States tax on foreign income(1.9)(1.2)0.6 Dividend (net of dividend received deduction)(0.8)(42.1)5.5 Tax effect on loss on Crosman5.7 — — Utilization of tax credits(5.4)20.0 (13.0)Effect of classification of assets held for sale— — 14.9 Other0.1 (4.8)2.6 Effective income tax rate53.7 %(102.0)%71.8 %

Reconciliation of Non-GAAP Financial Measures

GAAP or U.S. GAAP refer to generally accepted accounting principles in the United States. From time to time we may publicly disclose certain “non-GAAP” financial measures in the course of our investor presentations, earnings releases, earnings conference calls or other venues. A non-GAAP financial measure is a numerical measure of historical or future performance, financial position or cash flow that excludes amounts, or is subject to adjustments that effectively exclude amounts, included in the most directly comparable measure calculated and presented in accordance with GAAP in our financial statements, and vice versa for measures that include amounts, or are subject to adjustments that effectively include amounts, that are excluded from the most directly comparable measure as calculated and presented