UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, DC  20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: June 30, 2021

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 001-07626

Sensient Technologies Corporation

(Exact name of registrant as specified in its charter)

Wisconsin	39-0561070
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

777 EAST WISCONSIN AVENUE, MILWAUKEE, WISCONSIN 53202-5304

(Address of principal executive offices)

Registrant's telephone number, including area code: (414) 271-6755

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, par value $0.10 per share	SXT	New York Stock Exchange LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for at least the past 90 days.Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer   ☒	Accelerated Filer ☐	Non-Accelerated Filer ☐
Smaller Reporting Company ☐	Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐    No ☒

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

Class	Outstanding at July 28, 2021
Common Stock, par value $0.10 per share	42,156,133

SENSIENT TECHNOLOGIES CORPORATION

INDEX

		Page No.
PART I. FINANCIAL INFORMATION:
Item 1.	Financial Statements:
	Consolidated Statements of Earnings ‑ Three and Six Months Ended June 30, 2021 and 2020.	1
	Consolidated Condensed Statements of Comprehensive Income ‑ Three and Six Months Ended June 30, 2021 and 2020.	2
	Consolidated Balance Sheets - June 30, 2021 and December 31, 2020.	3
	Consolidated Statements of Cash Flows ‑ Six Months Ended June 30, 2021 and 2020.	4
	Consolidated Statements of Shareholders’ Equity ‑ Three and Six Months Ended June 30, 2021 and 2020.	5
	Notes to Consolidated Condensed Financial Statements.	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	19
Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	25
Item 4.	Controls and Procedures.	26
PART II. OTHER INFORMATION:
Item 1.	Legal Proceedings.	27
Item 1A.	Risk Factors.	27
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	27
Item 6.	Exhibits.	27
	Exhibit Index.	28
	Signatures.	29

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

SENSIENT TECHNOLOGIES CORPORATION

CONSOLIDATED STATEMENTS OF EARNINGS

(In thousands except per share amounts)

(Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Revenue	$	335,827	$	323,090	$	695,529	$	673,767
Cost of products sold		224,233		220,876		468,322		459,660
Selling and administrative expenses		75,841		60,089		144,557		137,421
Operating income		35,753		42,125		82,650		76,686
Interest expense		3,322		3,608		6,755		7,915
Earnings before income taxes		32,431		38,517		75,895		68,771
Income taxes		6,495		7,897		18,291		17,378
Net earnings	$	25,936	$	30,620	$	57,604	$	51,393
Weighted average number of common shares outstanding:
Basic		42,135		42,305		42,199		42,294
Diluted		42,267		42,322		42,328		42,315
Earnings per common share:
Basic	$	0.62	$	0.72	$	1.37	$	1.22
Diluted	$	0.61	$	0.72	$	1.36	$	1.21
Dividends declared per common share	$	0.39	$	0.39	$	0.78	$	0.78

See accompanying notes to consolidated condensed financial statements.

1

SENSIENT TECHNOLOGIES CORPORATION

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

(Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Comprehensive income	$	44,245	$	33,257	$	60,774	$	9,677

See accompanying notes to consolidated condensed financial statements.

2

SENSIENT TECHNOLOGIES CORPORATION

CONSOLIDATED BALANCE SHEETS

(In thousands)

Assets	June 30, 2021 (Unaudited)			December 31, 2020
Current Assets:
Cash and cash equivalents	$	33,306		$	24,770
Trade accounts receivable		258,411			234,132
Inventories		360,240			381,346
Prepaid expenses and other current assets		56,111			48,578
Assets held for sale		-			52,760
Total current assets		708,068			741,586
Other assets		90,369			89,883
Deferred tax assets		28,067			29,678
Intangible assets, net		10,676			10,930
Goodwill		418,528			423,290
Property, Plant, and Equipment:
Land		31,315			31,422
Buildings		318,523			316,533
Machinery and equipment		702,697			703,485
Construction in progress		28,750			21,759
		1,081,285			1,073,199
Less accumulated depreciation		(639,263	)		(627,706	)
		442,022			445,493
Total assets	$	1,697,730		$	1,740,860
Liabilities and Shareholders’ Equity
Current Liabilities:
Trade accounts payable	$	115,325		$	107,324
Accrued salaries, wages, and withholdings from employees		30,210			34,462
Other accrued expenses		43,920			42,985
Income taxes		6,190			4,598
Short-term borrowings		771			9,247
Liabilities held for sale		-			17,339
Total current liabilities		196,416			215,955
Deferred tax liabilities		13,444			13,411
Other liabilities		30,500			30,213
Accrued employee and retiree benefits		29,863			28,941
Long-term debt		483,230			518,004
Shareholders’ Equity:
Common stock		5,396			5,396
Additional paid-in capital		105,967			102,909
Earnings reinvested in the business		1,603,239			1,578,662
Treasury stock, at cost		(614,404	)		(593,540	)
Accumulated other comprehensive loss		(155,921	)		(159,091	)
Total shareholders’ equity		944,277			934,336
Total liabilities and shareholders’ equity	$	1,697,730		$	1,740,860

See accompanying notes to consolidated condensed financial statements.

3

SENSIENT TECHNOLOGIES CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Six Months Ended June 30,
	2021			2020
Cash flows from operating activities:
Net earnings	$	57,604		$	51,393
Adjustments to arrive at net cash provided by operating activities:
Depreciation and amortization		25,817			24,522
Share-based compensation expense		4,188			2,662
Net loss on assets		206			50
Loss on divestitures and other charges		13,511			6,634
Deferred income taxes		1,702			1,075
Changes in operating assets and liabilities:
Trade accounts receivable		(26,902	)		(20,494	)
Inventories		19,357			24,816
Prepaid expenses and other assets		(15,573	)		(3,975	)
Accounts payable and other accrued expenses		9,632			9,961
Accrued salaries, wages, and withholdings from employees		(3,944	)		6,483
Income taxes		1,953			3,899
Other liabilities		1,710			588
Net cash provided by operating activities		89,261			107,614
Cash flows from investing activities:
Acquisition of property, plant, and equipment		(25,550	)		(21,417	)
Proceeds from sale of assets		169			6
Proceeds from divesture of businesses		36,255			11,255
Other investing activities		(254	)		4,395
Net cash provided by (used in) investing activities		10,620			(5,761	)
Cash flows from financing activities:
Proceeds from additional borrowings		25,997			38,670
Debt payments		(62,578	)		(98,849	)
Purchase of treasury stock		(22,507	)		-
Dividends paid		(33,027	)		(33,018	)
Other financing activities		(582	)		(414	)
Net cash used in financing activities		(92,697	)		(93,611	)
Effect of exchange rate changes on cash and cash equivalents		1,352			(8,519	)
Net increase (decrease) in cash and cash equivalents		8,536			(277	)
Cash and cash equivalents at beginning of period		24,770			21,153
Cash and cash equivalents at end of period	$	33,306		$	20,876

See accompanying notes to consolidated condensed financial statements.

4

SENSIENT TECHNOLOGIES CORPORATION

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(In thousands, except share and per share amounts)

(Unaudited)

	Common		Additional Paid-In			Earnings Reinvested			Treasury Stock						Accumulated Other Comprehensive			Total
Three Months Ended June 30, 2021	Stock		Capital			in the Business			Shares			Amount			Income (Loss)			Equity
Balances at March 31, 2021	$	5,396	$	104,725		$	1,593,795			11,776,654		$	(604,040	)	$	(174,230	)	$	925,646
Net earnings		-		-			25,936			-			-			-			25,936
Other comprehensive income		-		-			-			-			-			18,309			18,309
Cash dividends paid - $0.39 per share		-		-			(16,492	)		-			-			-			(16,492	)
Share-based compensation		-		2,075			-			-			-			-			2,075
Non-vested stock issued upon vesting		-		(701	)		-			(13,666	)		701			-			-
Purchase of treasury stock		-		-			-			125,150			(10,842	)		-			(10,842	)
Other		-		(132	)		-			4,359			(223	)		-			(355	)
Balances at June 30, 2021	$	5,396	$	105,967		$	1,603,239			11,892,497		$	(614,404	)	$	(155,921	)	$	944,277

Three Months Ended June 30, 2020
Balances at March 31, 2020	$	5,396	$	99,080		$	1,539,520		11,656,206		$	(593,977	)	$	(207,361	)	$	842,658
Net earnings		-		-			30,620		-			-			-			30,620
Other comprehensive income		-		-			-		-			-			2,637			2,637
Cash dividends paid - $0.39 per share		-		-			(16,518	)	-			-			-			(16,518	)
Share-based compensation		-		1,485			-		-			-			-			1,485
Non-vested stock issued upon vesting		-		(628	)		-		(12,315	)		628			-			-
Other		-		25			-		3,736			(191	)		-			(166	)
Balances at June 30, 2020	$	5,396	$	99,962		$	1,553,622		11,647,627		$	(593,540	)	$	(204,724	)	$	860,716

Six Months Ended June 30, 2021
Balances at December 31, 2020	$	5,396	$	102,909		$	1,578,662		11,647,627		$	(593,540	)	$	(159,091	)	$	934,336
Net earnings		-		-			57,604		-			-			-			57,604
Other comprehensive income		-		-			-		-			-			3,170			3,170
Cash dividends paid - $0.78 per share		-		-			(33,027	)	-			-			-			(33,027	)
Share-based compensation		-		4,188			-		-			-			-			4,188
Non-vested stock issued upon vesting		-		(1,264	)		-		(24,711	)		1,264			-			-
Benefit plans		-		338			-		(14,791	)		756			-			1,094
Purchase of treasury stock		-		-			-		276,993			(22,507	)		-			(22,507	)
Other		-		(204	)		-		7,379			(377	)		-			(581	)
Balances at June 30, 2021	$	5,396	$	105,967		$	1,603,239		11,892,497		$	(614,404	)	$	(155,921	)	$	944,277

Six Months Ended June 30, 2020
Balances at December 31, 2019	$	5,396	$	98,425		$	1,536,100		11,682,636		$	(595,324	)	$	(163,008	)	$	881,589
Net earnings		-		-			51,393		-			-			-			51,393
Other comprehensive loss		-		-			-		-			-			(41,716	)		(41,716	)
Cash dividends paid - $0.78 per share		-		-			(33,018	)	-			-			-			(33,018	)
Share-based compensation		-		2,662			-		-			-			-			2,662
Non-vested stock issued upon vesting		-		(1,352	)		-		(26,515	)		1,352			-			-
Benefit plans		-		241			-		(16,344	)		833			-			1,074
Adoption of ASU 2016-13		-		-			(853	)	-			-			-			(853	)
Other		-		(14	)		-		7,850			(401	)		-			(415	)
Balances at June 30, 2020	$	5,396	$	99,962		$	1,553,622		11,647,627		$	(593,540	)	$	(204,724	)	$	860,716

See accompanying notes to consolidated condensed financial statements.

5

SENSIENT TECHNOLOGIES CORPORATION

NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

(Unaudited)

1. Accounting Policies

In the opinion of Sensient Technologies Corporation (the Company), the accompanying unaudited consolidated condensed financial statements contain all adjustments (consisting of only normal recurring adjustments) that are necessary to present fairly the financial position of the Company as of June 30, 2021, and the results of operations, comprehensive income, and shareholders’ equity for the three and six months ended June 30, 2021 and 2020, and cash flows for the six months ended June 30, 2021 and 2020. The results of operations for any interim period are not necessarily indicative of the results to be expected for the full year.

The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Expenses are charged to operations in the period incurred.

Recently Adopted Accounting Pronouncements

In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which clarifies and simplifies aspects of the accounting for income taxes. ASU 2019-12 is effective for public business entities beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. The Company adopted ASU 2019-12 on January 1, 2021, using retrospective, modified retrospective or prospective basis for certain amendments. There was no impact to the consolidated financial statements.

Recently Issued Accounting Pronouncements

In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides temporary optional expedients and exceptions to GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other inter-bank offered rates to alternative rates. The guidance is effective upon issuance and generally can be applied through December 31, 2022. The Company is currently evaluating the potential impact of this standard on its consolidated financial statements and its related disclosures.

Please refer to the notes in the Company’s annual consolidated financial statements for the year ended December 31, 2020, for additional details of the Company’s financial condition and a description of the Company’s accounting policies, which have been continued without change.

2. Divestitures

In October 2019, the Company announced its intent to divest its inks, fragrances (excluding its essential oils product line), and yogurt fruit preparations product lines. The divesting and exit of these three product lines does not meet the criteria to be presented as a discontinued operation on the Consolidated Statements of Earnings.

On June 30, 2020, the Company completed the sale of its inks product line. In 2020, the Company received $11.6 million of net cash and expects to receive additional cash when it completes certain post-closing asset sales.

On September 18, 2020, the Company completed the sale of its yogurt fruit preparations product line for $1.0 million. The sale included an earn-out based on future performance, which could result in additional cash consideration for the Company.

On April 1, 2021, the Company completed the sale of its fragrances product line (excluding its essential oils product line). The Company received $36.3 million of net cash, subject to post-closing working capital and net debt adjustments. In addition, the Company expects to receive additional consideration for the collection of certain retained accounts receivable. As a result of the completion of the sale, the Company recorded a non-cash net loss of $11.3 million for the three months ended June 30, 2021, primarily related to the reclassification of accumulated foreign currency translation and related items from Accumulated Other Comprehensive Loss to Selling and Administrative Expenses in the Consolidated Statements of Earnings.

6

The assets and liabilities related to the inks and fragrances (excluding its essential oils product line) product lines are recorded in Assets Held for Sale and Liabilities Held for Sale as of December 31, 2020, as follows:

(In thousands)	December 31, 2020
Assets held for sale:
Trade accounts receivable	$	20,722
Inventories		25,045
Prepaid expenses and other current assets		1,843
Property, plant, and equipment, net		3,434
Intangible assets		1,716
Assets held for sale	$	52,760
Liabilities held for sale:
Trade accounts payable	$	13,967
Accrued salaries, wages, and withholdings from employees		1,739
Other accrued expenses		1,633
Liabilities held for sale	$	17,339

The Company reports all costs associated with the divestitures in Corporate & Other. The following table summarizes the divestiture & other related costs for the three months ended June 30, 2021:

(In thousands)	Yogurt Fruit Preparations		Fragrances		Inks			Corporate/ Other		Total
Non-cash impairment charges – Selling and administrative expenses	$	-	$	1,062	$	-		$	-	$	1,062
Non-cash charges – Cost of products sold		-		3		-			-		3
Reclassification of foreign currency translation and related items – Selling and administrative expenses		-		10,193		-			-		10,193
Other costs - Selling and administrative expenses(1)		264		202		(98	)		62		430
Total	$	264	$	11,460	$	(98	)	$	62	$	11,688

(1) Other costs – Selling and administrative expenses include employee separation costs, professional services, accelerated depreciation, and other related costs.

The Company reports all costs associated with the divestitures in Corporate & Other. The following table summarizes the divestiture & other related costs for the three months ended June 30, 2020:

(In thousands)	Yogurt Fruit Preparations		Fragrances		Inks			Corporate/ Other		Total
Non-cash impairment charges – Selling and administrative expenses	$	2,386	$	-	$	(86	)	$	-	$	2,300
Non-cash charges – Cost of products sold		1,679		70		-			-		1,749
Reclassification of foreign currency translation and related items – Selling and administrative expenses		-		-		(8,217	)		-		(8,217	)
Other costs - Selling and administrative expenses(1)		518		1,288		194			641		2,641
Total	$	4,583	$	1,358	$	(8,109	)	$	641	$	(1,527	)

7

(1) Other costs – Selling and administrative expenses include environmental remediation, employee separation costs, professional services, accelerated depreciation, and other related costs.

The Company reports all costs associated with the divestitures in Corporate & Other. The following table summarizes the divestiture & other related costs for the six months ended June 30, 2021:

(In thousands)	Yogurt Fruit Preparations		Fragrances		Inks			Corporate/ Other		Total
Non-cash impairment charges – Selling and administrative expenses	$	-	$	1,062	$	-		$	-	$	1,062
Non-cash charges – Cost of products sold		-		37		(9	)		-		28
Reclassification of foreign currency translation and related items – Selling and administrative expenses		-		10,193		-			-		10,193
Other costs - Selling and administrative expenses(1)		529		1,216		(205	)		437		1,977
Total	$	529	$	12,508	$	(214	)	$	437	$	13,260

(1) Other costs – Selling and administrative expenses include environmental remediation, employee separation costs, professional services, and other related costs.

The Company reports all costs associated with the divestitures in Corporate & Other. The following table summarizes the divestiture & other related costs for the six months ended June 30, 2020:

(In thousands)	Yogurt Fruit Preparations		Fragrances		Inks			Corporate/ Other		Total
Non-cash impairment charges – Selling and administrative expenses	$	2,386	$	339	$	9,351		$	-	$	12,076
Non-cash charges – Cost of products sold		1,679		70		-			190		1,939
Reclassification of foreign currency translation and related items – Selling and administrative expenses		-		-		(8,217	)		-		(8,217	)
Other costs - Selling and administrative expenses(1)		586		2,106		296			1,530		4,518
Total	$	4,651	$	2,515	$	1,430		$	1,720	$	10,316

(1) Other costs – Selling and administrative expenses include environmental remediation, employee separation costs, professional services, and other related costs.

The Company recorded non-cash impairment charges in Selling and Administrative Expenses, primarily related to property, plant, and equipment and allocated goodwill, when the estimated fair value less costs to sell the product line was lower than its carrying value. The Company recorded non-cash charges in Cost of Products Sold to reduce the carrying value of certain inventories when they were determined to be excess.

In March 2020, the Company was notified by the buyer of the Company’s fragrances product line that environmental sampling conducted at the Company’s Granada, Spain location had identified the presence of contaminants in soil and groundwater in certain areas of the property. The Company records liabilities related to environmental remediation obligations when estimated future expenditures are probable and the amount of the liability is reasonably estimable. The Company recorded $0.8 million in the three months ended June 30, 2020, based upon an environmental investigation and a quantitative risk assessment performed by a consultant hired by the Company. During the six months ended June 30, 2021, the Company recorded an additional $0.3 million related to these obligations in Selling and Administrative Expenses based on further analysis at the site during the period. As of June 30, 2021, the Company estimates remaining 2021 divestiture & other related costs will not be significant.

8

3. Operational Improvement Plan

During the third quarter of 2020, the Company approved an operational improvement plan (Operational Improvement Plan) to consolidate manufacturing facilities and improve efficiencies within the Company. As part of the Operational Improvement Plan, the Company is combining its New Jersey cosmetics manufacturing facility in the Personal Care product line of the Color segment into its existing Color segment facility in Missouri. In addition, the Company is centralizing certain Flavors & Extracts segment support functions in Europe into one location. In the Asia Pacific segment, the Company incurred costs in connection with the elimination of certain selling and administrative positions.

During the second quarter of 2021, the Company received cash proceeds, net of associated expenses, in connection with the termination of a New Jersey office and laboratory space lease. The terminated lease was originally executed in November 2020 as part of the Operational Improvement Plan; however, the landlord for the property requested to terminate the lease prior to the end of its term and compensated the Company as part of a negotiated resolution for that termination. The Company reports all costs and income associated with the Operational Improvement Plan in Corporate & Other.

The following table summarizes the Operational Improvement Plan income and expenses recorded in Selling and Administrative Expenses by segment for the three months ended June 30, 2021:

(In thousands)	Flavors & Extracts		Color			Asia Pacific			Consolidated
Employee separation costs	$	3	$	26		$	(24	)	$	5
Other income(1)		-		(3,624	)		-			(3,624	)
Other costs		-		125			-			125
Total expense (income)	$	3	$	(3,473	)	$	(24	)	$	(3,494	)

(1) Other income includes cash received for the early termination of a lease less associated expenses.

The following table summarizes the Operational Improvement Plan expenses recorded in Selling and Administrative Expenses by segment for the six months ended June 30, 2021:

(In thousands)	Flavors & Extracts			Color			Asia Pacific			Consolidated
Employee separation costs	$	(16	)	$	80		$	(68	)	$	(4	)
Other income(1)		-			(3,624	)		-			(3,624	)
Other costs(2)		-			1,134			1			1,135
Total expense (income)	$	(16	)	$	(2,410	)	$	(67	)	$	(2,493	)

(1) Other income includes cash received for the early termination of a lease less associated expenses.

(2) Other costs include professional services, accelerated depreciation, and other related costs.

As of June 30, 2021 and December 31, 2020, the Company recorded $1.6 million and $2.2 million, respectively, of accrued liabilities in Other Accrued Expenses on the Company’s Consolidated Balance Sheet related to this plan. The Company estimates remaining 2021 Operational Improvement Plan costs will be approximately $1 million.

4. Trade Accounts Receivable

Trade accounts receivables are recorded at their face amount, less an allowance for expected losses on doubtful accounts. The allowance for doubtful accounts is calculated based on customer-specific analysis and an aging methodology using historical loss information. The Company believes historical loss information is a reasonable basis for expected credit losses as the Company’s historical credit loss experience correlates with its customer delinquency status. This information is also adjusted for any known current economic conditions, including the current and expected impact of COVID-19. Currently, the COVID-19 pandemic has not had, and is not anticipated to have, a material impact on trade accounts receivable. Forecasted economic conditions have not had a significant impact on the current credit loss estimate due to the short-term nature of the Company’s customer receivables; however, the Company will continue to monitor and evaluate the rapidly changing economic conditions. Additionally, as the Company only has one portfolio segment, there are not different risks between portfolios. Specific accounts are written off against the allowance for doubtful accounts when the receivable is deemed no longer collectible.

9

The following tables summarize the changes in the allowance for doubtful accounts during the three and six month periods ended June 30, 2021 and 2020:

(In thousands) Three Months Ended June 30, 2021	Allowance for Doubtful Accounts
Balance at March 31, 2021	$	3,614
Provision for expected credit losses		138
Accounts written off		(20	)
Translation and other activity		17
Balance at June 30, 2021	$	3,749

(In thousands)

Three Months Ended <