Company: CODI-PB
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001345126-25-000015
Chunk: 240

Company: Compass Diversified Holdings
Filing Date: 2025-02-27
Form: 10-K
Item: Item 16
Chunk 240
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 the present value of future cash flows. Cash flow projections are based on management's estimate of revenue growth rates and operating margins, and take into consideration industry and market conditions as well as company specific economic factors. The Company used a weighted average cost of capital of 17% in the income approach. The discount rate used was based on the weighted average cost of capital adjusted for the relevant risk associated with business specific characteristics and Velocity's ability to execute on projected cash flows. Based on the results of the impairment test, the fair value of Velocity did not exceed its carrying value. The Company recorded goodwill impairment of $31.6 million during the year ended December 31, 2023.The following is a summary of the net carrying amount of goodwill at December 31, 2024 and 2023 (in thousands):December 31, 2024December 31, 2023Goodwill - gross carrying amount$1,137,580 $1,007,052 Accumulated impairment losses (1)(155,327)(147,145)Goodwill - net carrying amount$982,253 $859,907 (1) Comprised of accumulated goodwill impairment expense of $72.7 million at Velocity $24.9 million at Arnold and $57.8 million at PrimaLoft.

F-32

COMPASS DIVERSIFIED HOLDINGSNOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

Intangible AssetsIntangible assets are comprised of the following (in thousands):December 31, 2024December 31, 2023Gross Carrying  AmountAccumulated  AmortizationNet Carrying  AmountGross Carrying  AmountAccumulated  AmortizationNet Carrying  AmountWeightedAverageUseful LivesCustomer relationships$806,382 $(318,898)$487,484 $748,972 $(275,152)$473,820 13Technology and patents198,865 (78,175)120,690 200,788 (65,043)135,745 12Trade names, subject to amortization501,999 (92,603)409,396 321,291 (83,644)237,647 18Non-compete agreements1,588 (1,282)306 1,588 (1,032)556 5Other contractual intangible assets210 (210)— 210 (210)— 01,509,044