Creating a compound shape is a two-part process. First, you establish a compound shape in which all components have the same shape mode. Then, you assign shape modes to the components until you obtain the desired combination of shape areas.
Releasing a compound shape separates it back into separate objects. Expanding a compound shape maintains the shape of the compound object, but you can no longer select the individual components.
Click Expand in the Pathfinder panel.
Choose Expand Compound Shape from the Pathfinder panel menu.
The compound shape is converted to a <Path> or <Compound Path> item in the Layers panel, depending on the shape mode it used.
Choose Release Compound Shape from the Pathfinder panel menu.
The shape layers and layer clipping paths (vector masks) in Adobe Photoshop are types of compound shapes. You can import shape layers and layer clipping paths into Illustrator as compound shapes and continue to manipulate them. In addition, you can export compound shapes to Photoshop. Keep the following in mind when using compound shapes with Photoshop:
Only compound shapes that reside at the top level of the layer hierarchy are exported to Photoshop as shape layers.
A compound shape painted with a stroke using a join other than round, or with a weight in points that is not an integer, is rasterized when exported to the PSD file format.