Company: CODI-PB
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001345126-25-000015
Chunk: 271

Company: Compass Diversified Holdings
Filing Date: 2025-02-27
Form: 10-K
Item: Item 16
Chunk 271
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 3,387 Warranty payments(2,469)(3,475)Ending balance$1,121 $1,258 

F-51

COMPASS DIVERSIFIED HOLDINGSNOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

Supplemental Statement of Operations Data (in thousands):Other income (expense), netYear ended December 31,202420232022Foreign currency gain (loss)$781 $(819)$(1,163)Loss on sale of capital assets(885)(890)(2,576)Sublease income476 1,434 1,330 Loss on equity method investment(1,709)— — Other income (expense)(2,565)2,054 94 $(3,902)$1,779 $(2,315)Supplemental Cash Flow Statement Data (in thousands): Year ended December 31,202420232022Interest paid$105,734 $108,418 $75,755 Taxes paid$61,889 $79,142 $24,607 InvestmentsArnold Joint VentureArnold is a 50% partner in a China rare earth mine-to-magnet joint venture. Arnold accounts for its activity in the joint venture utilizing the equity method of accounting. Gains and losses from the joint venture were not material for the years ended December 31, 2024, 2023 and 2022.Altor SolutionsIn September 2020, Altor invested $3.6 million in Rational Packaging, LLC, a designer and manufacturer of recyclable, paperboard-based structural packaging components. The investment was accounted for as an equity method investment. In 2024, Altor acquired the remaining equity interests in Rational Packaging, LLC and began accounting for Rational Packaging as a consolidated entity. Gains and losses from the investment were not material for the years ended December 31, 2024, 2023 and 2022.

Note O — Commitments and Contingencies

LeasesThe Company and its subsidiaries lease office and manufacturing facilities, computer equipment and software under various operating arrangements. Certain of the leases are subject to escalation clauses and renewal periods. The Company and its subsidiaries recognize lease expense, including predetermined fixed escalations, on a straight-line basis over the initial term of the lease including reasonably assured renewal periods from the time that the Company and its subsidiaries control the leased property. Leases with an initial term of 12 months or less are not recorded on the balance