Company: CODI-PB
Filing Date: 2025-12-08
Form Type: 10-K/A
Source: 0001345126-25-000078
Chunk: 276

Company: Compass Diversified Holdings
Filing Date: 2025-12-08
Form: 10-K/A
Chunk 276
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,879 |     |                     | -26,207 |     |                              |       — |
| PrimaLoft        |     |                            |       — |     |                                                | 291,150 |     |                     |       — |     |                              | 291,150 |
| Velocity Outdoor |     |                            |  30,079 |     |                                                |   9,694 |     |                     |       — |     |                              |  39,773 |
| Altor Solutions  |     |                            |  90,843 |     |                                                |     286 |     |                     |       — |     |                              |  91,129 |
| Arnold           |     |                            |  39,267 |     |                                                |       — |     |                     |       — |     |                              |  39,267 |
| Sterno           |     |                            |  55,336 |     |                                                |       — |     |                     |       — |     |                              |  55,336 |
| Total            |     | $                          | 585,972 |     | $                                              | 304,009 |     | $                   | -26,207 |     | $                            | 863,774 |

(1) Acquisition of businesses during the year ended December 31, 2022 includes the acquisition of PrimaLoft by the Company, and an add-on acquisition at Velocity.

Approximately $ 227.9million of goodwill is deductible for income tax purposes at December 31, 2024.

Annual Impairment Testing

The Company uses a qualitative approach to test goodwill and indefinite lived intangible assets for impairment by first assessing qualitative factors to determine whether it is more-likely than-not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform quantitative goodwill impairment testing.

2024 Annual Impairment Testing

For the Company's annual impairment testing at March 31, 2024, the Company performed a qualitative assessment of our reporting units. The results of the qualitative analysis indicated that it was more-likely-than-not that the fair value of each of our reporting units except Velocity exceeded their carrying value. Based on our analysis, the Company determined that the Velocity operating segment required quantitative testing because we could not conclude that the fair value of this reporting unit significantly exceeded the carrying value based on qualitative factors alone. The Company performed a quantitative test of Velocity and the results of the testing