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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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 September 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: 1-13648
_______________________________________________________________________________________________________________
Balchem Corporation
(Exact name of Registrant as specified in its charter)
Maryland 13-2578432
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification Number)

52 Sunrise Park Road, New Hampton, NY 10958
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (845) 326-5600

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbolName of each exchange on which registered
Common Stock, par value $.06-2/3 per shareBCPCNasdaq Global Market
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 such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for 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, or a smaller reporting 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.
(Check one):Large accelerated filerAccelerated filer 
 Non-accelerated filerSmaller reporting companyEmerging 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
As of October 21, 2021, the registrant had 32,381,611 shares of its Common Stock, $.06 2/3 par value, outstanding.



BALCHEM CORPORATION
QUARTERLY REPORT ON FORM 10-Q
TABLE OF CONTENTS
Page No.



Part I.    Financial Information

Item 1.    Financial Statements
BALCHEM CORPORATION
Condensed Consolidated Balance Sheets
(In thousands, except share and per share data)
AssetsSeptember 30, 2021 (unaudited)December 31, 2020
Current assets:  
Cash and cash equivalents$90,013 $84,571 
Accounts receivable, net of allowance for doubtful accounts of $930 and $2,092 at September 30, 2021 and December 31, 2020 respectively
110,711 98,214 
Inventories81,925 70,620 
Prepaid expenses9,604 6,598 
Prepaid income taxes4,115 3,447 
Other current assets3,907 3,438 
Total current assets300,275 266,888 
Property, plant and equipment, net229,798 228,096 
Goodwill525,419 529,463 
Intangible assets with finite lives, net101,283 121,660 
Right of use assets9,280 8,410 
Other assets13,294 11,326 
Total assets$1,179,349 $1,165,843 
Liabilities and Stockholders' Equity
Current liabilities:
Trade accounts payable$37,942 $23,742 
Accrued expenses44,452 29,655 
Accrued compensation and other benefits19,889 19,753 
Dividends payable200 18,941 
Lease liabilities - current2,443 2,337 
Total current liabilities104,926 94,428 
Revolving loan108,569 163,569 
Deferred income taxes51,332 51,359 
Lease liabilities - non-current6,989 6,079 
Derivative liabilities4,944 11,658 
Other long-term obligations13,511 10,517 
Total liabilities290,271 337,610 
Commitments and contingencies (Note 15)
Stockholders' equity:
Preferred stock, $25 par value. Authorized 2,000,000 shares; none issued and outstanding
  
Common stock, $0.0667 par value. Authorized 120,000,000 shares; 32,467,909 shares issued and 32,382,637 shares outstanding at September 30, 2021 and 32,448,705 shares issued and 32,372,621 outstanding at December 31, 2020, respectively
2,165 2,164 
Additional paid-in capital172,676 173,029 
Retained earnings727,895 656,740 
Accumulated other comprehensive income(2,578)4,173 
Treasury stock, at cost: 85,272 and 76,084 shares at September 30, 2021 and December 31, 2020, respectively
(11,080)(7,873)
Total stockholders' equity889,078 828,233 
Total liabilities and stockholders' equity$1,179,349 $1,165,843 
See accompanying notes to condensed consolidated financial statements.
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BALCHEM CORPORATION
Condensed Consolidated Statements of Earnings
(In thousands, except per share data)
(unaudited)
 Three Months Ended
September 30,
Nine Months Ended
September 30,
 2021202020212020
Net sales$197,869 $175,140 $585,890 $522,931 
Cost of sales136,935 118,772 406,782 355,852 
Gross margin60,934 56,368 179,108 167,079 
Operating expenses:
Selling expenses15,478 14,224 45,248 43,490 
Research and development expenses3,156 2,692 8,804 7,961 
General and administrative expenses9,787 10,424 31,375 33,405 
 28,421 27,340 85,427 84,856 
Earnings from operations32,513 29,028 93,681 82,223 
Other expenses:
Interest expense, net556 953 1,889 3,609 
Other (income) expense, net(128)168 (295)244 
428 1,121 1,594 3,853 
Earnings before income tax expense32,085 27,907 92,087 78,370 
Income tax expense7,072 6,339 20,932 15,909 
Net earnings$25,013 $21,568 $71,155 $62,461 
Net earnings per common share - basic$0.78 $0.67 $2.21 $1.94 
Net earnings per common share - diluted$0.77 $0.66 $2.18 $1.92 
See accompanying notes to condensed consolidated financial statements.

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BALCHEM CORPORATION
Condensed Consolidated Statements of Comprehensive Income
(In thousands)
(unaudited)
 Three Months Ended
September 30,
Nine Months Ended
September 30,
 2021202020212020
Net earnings$25,013 $21,568 $71,155 $62,461 
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment(3,362)4,313 (7,981)7,440 
Unrealized gain (loss) on cash flow hedge341 227 1,204 (2,659)
Change in postretirement benefit plans11 137 26 (434)
Other comprehensive (loss) income(3,010)4,677 (6,751)4,347 
Comprehensive income$22,003 $26,245 $64,404 $66,808 
See accompanying notes to condensed consolidated financial statements.

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BALCHEM CORPORATION
Condensed Consolidated Statements of Changes in Stockholders’ Equity
For the three and nine months ended September 30, 2021 and 2020
(In thousands, except share and per share data)

Total
Stockholders'
Equity
Retained
Earnings
Accumulated
Other
Comprehensive
(Loss) Income
Common StockTreasury StockAdditional
Paid-in
Capital
SharesAmountSharesAmount
Balance - December 31, 2020$828,233 $656,740 $4,173 32,448,705 $2,164 (76,084)$(7,873)$173,029 
Net earnings23,411 23,411 — — — — — — 
Other comprehensive (loss)(5,624)— (5,624)— — — — — 
Treasury shares purchased(1,596)— — — — (13,475)(1,596)— 
Shares and options issued under stock plans5,068 — — 22,314 1 70,470 7,259 (2,192)
Balance - March 31, 2021849,492 680,151 (1,451)32,471,019 2,165 (19,089)(2,210)170,837 
Net earnings22,731 22,731 — — — — — — 
Other comprehensive income1,883 — 1,883 — — — — — 
Treasury shares purchased(9,240)— — — — (72,649)(9,240)— 
Shares and options (canceled) issued under stock plans4,776 — — (190)— 25,683 2,978 1,798 
Balance - June 30, 2021869,642 702,882 432 32,470,829 2,165 (66,055)(8,472)172,635 
Net earnings25,013 25,013 — — — — — — 
Other comprehensive (loss)(3,010)— (3,010)— — — — — 
Treasury shares purchased(7,926)— — — — (61,075)(7,926)— 
Shares and options (canceled) issued under stock plans5,359 — — (2,920)— 41,858 5,318 41 
Balance - September 30, 2021$889,078 $727,895 $(2,578)32,467,909 $2,165 (85,272)$(11,080)$172,676 
See accompanying notes to condensed consolidated financial statements.

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Condensed Consolidated Statements of Changes in Stockholders’ Equity (continued)
For the three and nine months ended September 30, 2021 and 2020
(In thousands, except share and per share data)
Total
Stockholders'
Equity
Retained
Earnings
Accumulated
Other
Comprehensive
(Loss) Income
Common StockTreasury StockAdditional
Paid-in
Capital
SharesAmountSharesAmount
Balance - December 31, 2019$743,667 $590,921 $(5,564)32,405,796 $2,161 (203,879)$(18,069)$174,218 
Net earnings19,768 19,768 — — — — — — 
Other comprehensive (loss)(2,905)— (2,905)— — — — — 
Treasury shares purchased(891)— — — — (8,224)(891)— 
Shares and options issued under stock plans6,632 — — 41,619 3 81,530 7,266 (637)
Balance - March 31, 2020766,271 610,689 (8,469)32,447,415 2,164 (130,573)(11,694)173,581 
Net earnings21,125 21,125 — — — — — — 
Other comprehensive income2,575 — 2,575 — — — — — 
Treasury shares purchased(2,134)— — — — (24,281)(2,134)— 
Shares and options issued under stock plans4,686 — — 4,000 — 44,935 4,194 492 
Balance - June 30, 2020792,523 631,814 (5,894)32,451,415 2,164 (109,919)(9,634)174,073 
Net earnings21,568 21,568 — — — — — — 
Other comprehensive income4,677 — 4,677 — — — — — 
Treasury shares purchased(2,957)— — — — (31,224)(2,957)— 
Shares and options issued under stock plans3,632 — — — — 32,330 2,545 1,087 
Balance - September 30, 2020$819,443 $653,382 $(1,217)32,451,415 $2,164 (108,813)$(10,046)$175,160 
See accompanying notes to condensed consolidated financial statements.
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BALCHEM CORPORATION
Condensed Consolidated Statements of Cash Flows
(In thousands)
(unaudited)
 Nine Months Ended
September 30,
 20212020
Cash flows from operating activities:  
Net earnings$71,155 $62,461 
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization36,622 38,349 
Stock compensation expense8,809 6,755 
Deferred income taxes(806)532 
Provision for doubtful accounts105 250 
Unrealized (gain)/loss on foreign currency transaction and deferred compensation(534)153 
Asset impairment charge 1,915 
(Gain)/Loss on disposal of assets(996)57 
Changes in assets and liabilities
Accounts receivable(14,088)(4,979)
Inventories(11,736)6,802 
Prepaid expenses and other current assets(3,793)(844)
Accounts payable and accrued expenses30,467 (6,978)
Income taxes(681)(1,957)
Other1,499 24 
Net cash provided by operating activities116,023 102,540 
Cash flows from investing activities:
Capital expenditures and intangible assets acquired(22,391)(20,552)
Proceeds from insurance and sale of assets1,272 22 
Purchase of convertible note (850)
Net cash used in investing activities(21,119)(21,380)
Cash flows from financing activities:
Proceeds from revolving loan5,000 10,000 
Principal payments on revolving loan(60,000)(65,000)
Principal payments on finance lease(118)(112)
Proceeds from stock options exercised6,351 8,179 
Dividends paid(18,704)(16,704)
Purchase of treasury stock(18,762)(5,982)
Net cash used in financing activities(86,233)(69,619)
Effect of exchange rate changes on cash(3,229)1,754 
Increase in cash and cash equivalents5,442 13,295 
Cash and cash equivalents beginning of period84,571 65,672 
Cash and cash equivalents end of period$90,013 $78,967 
See accompanying notes to condensed consolidated financial statements.
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(In thousands, except share and per share data)

NOTE 1 – CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The condensed consolidated financial statements presented herein have been prepared in accordance with the accounting policies described in its December 31, 2020 consolidated financial statements, and should be read in conjunction with the consolidated financial statements and notes, which appear in the Annual Report on Form 10-K for the year ended December 31, 2020. The condensed consolidated financial statements reflect the operations of Balchem Corporation and its subsidiaries (the "Company"). All intercompany balances and transactions have been eliminated in consolidation.
In the opinion of management, the unaudited condensed consolidated financial statements furnished in this Form 10-Q include all adjustments necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented. All such adjustments are of a normal recurring nature. The condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP” or “GAAP”) governing interim financial statements and the instructions to Form 10-Q and Article 10 of Regulation S-X under the Securities Exchange Act of 1934 (the "Exchange Act") and therefore do not include some information and notes necessary to conform to annual reporting requirements. The results of operations for the three and nine months ended September 30, 2021 are not necessarily indicative of the operating results expected for the full year or any interim period.
Certain reclassifications have been made to prior period amounts to conform with the current period's presentation.
Recent Accounting Pronouncements
Recently Issued Accounting Standards
In March 2020, the FASB issued Accounting Standards Update ("ASU") 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." This ASU provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The ASU is intended to help stakeholders during the global market-wide reference rate transition period. Therefore, this Standard Update is in effect from March 12, 2020 through December 31, 2022. In January 2021, the FASB issued ASU 2021-01, "Reference Rate Reform (Topic 848): Scope." ASU 2021-01 clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The ASU also amends the expedients and exceptions in Topic 848 to capture the incremental consequences of the scope clarification and to tailor the existing guidance to derivative instruments affected by the discounting transition. The Company is currently evaluating the impact of this pronouncement on the consolidated financial statements and disclosures.
Recently Adopted Accounting Standards
In December 2019, the FASB issued ASU 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes." ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The effective date of this Standard Update is for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. The Standard Update may be adopted either using the prospective or retrospective transition approach and could also be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. The Company adopted the new Standard on January 1, 2021. The Standard did not have a significant impact on the Company's consolidated financial statements and disclosures.
In August 2018, the FASB issued ASU 2018-15, “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract.”  The guidance contained in this ASU requires implementation costs incurred by customers in cloud computing arrangements to be deferred over the noncancelable term of the cloud computing arrangements plus any optional renewal periods (1) that are reasonably certain to be exercised by the customer or (2) for which exercise of the renewal option is controlled by the cloud service provider.  This ASU became effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years.  The Standard may be adopted either using the prospective or retrospective transition approach.  The Company adopted the new Standard on January 1, 2020. The Standard Update did not have a significant impact on the Company’s consolidated financial statements and disclosures.
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In August 2018, the FASB issued ASU 2018-14, “Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans,” which modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement benefit plans.  The guidance removes disclosures that are no longer considered cost beneficial, clarifies the specific requirements of disclosures and adds disclosure requirements identified as relevant.  This Update should be applied on a retrospective basis to all periods presented and is effective for fiscal years ending after December 15, 2020.  Early adoption is permitted. The Company adopted the new Standard on January 1, 2020. The Standard Update did not have a significant impact on the Company's consolidated financial statements and disclosures.
In January 2017, the FASB issued ASU No. 2017-04, “Simplifying the Test for Goodwill Impairment”, which addresses changes to the testing for goodwill impairment by eliminating Step 2 of the process. The guidance is effective for annual and interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The Company adopted the new Standard on January 1, 2020. This ASU did not have a significant impact on the Company’s consolidated financial statements.
In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", which requires that credit losses be reported based on expected losses instead of the incurred loss model. The Update made several consequential amendments to the codification which requires the accounting for available-for-sale debt securities to be individually assessed for credit losses when fair value is less than the amortized cost basis. The FASB subsequently issued ASU 2019-04, ASU 2019-05, and ASU 2019-11, all of which further clarified ASU 2016-13. The Company adopted the new Standard and related Updates on January 1, 2020. The adoption did not have a significant impact on the consolidated financial statements.

NOTE 2 – STOCKHOLDERS’ EQUITY
STOCK-BASED COMPENSATION
The Company’s results for the three and nine months ended September 30, 2021 and 2020 reflected the following stock-based compensation cost, and such compensation cost had the following effects on net earnings:
Increase/(Decrease) for theIncrease/(Decrease) for the
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Cost of sales$444 $320 $1,188 $895 
Operating expenses2,451 1,935 7,621 5,860 
Net earnings(2,232)(1,718)(6,801)(5,137)
As allowed by ASC 718, the Company has made an estimate of expected forfeitures based on its historical experience and is recognizing compensation cost only for those stock-based compensation awards expected to vest.
The Company’s stock incentive plans allow for the granting of stock awards and options to purchase common stock. Both incentive stock options and nonqualified stock options can be awarded under the plans. No option is exercisable after ten years from the date of grant. The Company has approved and reserved a number of shares to be issued upon exercise of the outstanding options that is adequate to cover all exercises. As of September 30, 2021, the plans had 697,707 shares available for future awards. Compensation expense for stock options and stock awards is recognized on a straight-line basis over the vesting period, generally three years for stock options, three to four years for employee restricted stock awards, three years for employee performance share awards, and three to four years for non-employee director restricted stock awards. Certain awards provide for accelerated vesting if there is a change in control (as defined in the plans) or other qualifying events.
10

Option activity for the nine months ended September 30, 2021 and 2020 is summarized below:
For the nine months ended September 30, 2021Shares (000s)Weighted
Average
Exercise
Price
Aggregate
Intrinsic
Value
Weighted
Average
Remaining
Contractual
Term
Outstanding as of December 31, 2020858 $80.58 $29,735 
Granted129 119.12 
Exercised(100)63.49 
Forfeited(10)106.93 
Canceled(1)74.57 
Outstanding as of September 30, 2021876 $87.91 $50,090 6.6
Exercisable as of September 30, 2021540 $74.81 $37,961 5.5
For the nine months ended September 30, 2020 Shares (000s)Weighted
Average
Exercise
Price
Aggregate
Intrinsic
Value
Weighted
Average
Remaining
Contractual
Term
Outstanding as of December 31, 2019951 $68.18 $31,814 
Granted150 111.51 
Exercised(159)51.51 
Forfeited(10)94.27 
Canceled  
Outstanding as of September 30, 2020932 $77.72 $20,638 6.5
Exercisable as of September 30, 2020589 $67.66 $17,644 5.2
ASC 718 requires companies to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. The fair value of each option grant is estimated on the date of the grant using the Black-Scholes option-pricing model with the following weighted average assumptions: dividend yields of 0.5% and 0.5%; expected volatilities of 33% and 26%; risk-free interest rates of 0.5% and 1.4%; and expected lives of 4.9 years and 3.8 years, in each case for the nine months ended September 30, 2021 and 2020, respectively.
The Company used a projected expected life for each award granted based on historical experience of employees’ exercise behavior. Expected volatility is based on the Company’s historical volatility levels. Dividend yields are based on the Company’s historical dividend yields. Risk-free interest rates are based on the implied yields currently available on U.S. Treasury Zero coupon issues with a remaining term equal to the expected life.
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Other information pertaining to option activity during the three and nine months ended September 30, 2021 and 2020 was as follows:
 Three Months Ended
September 30,
Nine Months Ended
September 30,
 2021202020212020
Weighted-average fair value of options granted$ $28.59 $33.11 $23.24 
Total intrinsic value of stock options exercised ($000s)$3,196 $1,517 $6,927 $7,888 
Non-vested restricted stock activity for the nine months ended September 30, 2021 and 2020 is summarized below:
Nine Months Ended September 30,
20212020
Shares (000s)Weighted
Average Grant
Date Fair
Value
Shares (000s)Weighted
Average Grant
Date Fair
Value
Non-vested balance as of December 31159 $90.71 138 $80.03 
Granted38 119.59 38 109.95 
Vested(16)86.79 (21)67.60 
Forfeited(5)95.71 (4)93.35 
Non-vested balance as of September 30176 $97.17 151 $89.45 

Non-vested performance share activity for the nine months ended September 30, 2021 and 2020 is summarized below:
Nine Months Ended September 30,
20212020
Shares (000s)Weighted
Average Grant
Date Fair
Value
Shares (000s)Weighted
Average Grant
Date Fair
Value
Non-vested balance as of December 3171 $91.99 70$81.26 
Granted36 108.74 20126.46
Vested(24)70.64 (8)104.15
Forfeited(11)74.57 (11)82.71
Non-vested balance as of September 3072 $110.22 71$91.99 

The performance share (“PS”) awards provide the recipients the right to receive a certain number of shares of the Company’s common stock in the future, subject to an EBITDA performance hurdle, where vesting is dependent upon the Company achieving a certain EBITDA percentage growth over the performance period, and relative total shareholder return (TSR) where vesting is dependent upon the Company’s TSR performance over the performance period relative to a comparator group consisting of the Russell 2000 index constituents. Expense is measured based on the fair value at the date of grant utilizing a Black-Scholes methodology to produce a Monte-Carlo simulation model which allows for the incorporation of the performance hurdles that must be met before the PS vests. The assumptions used in the fair value determination were risk free interest rates of 0.2% and 1.4%; dividend yields of 0.6% and 0.5%; volatilities of 33% and 24%; and initial TSR’s of 11.7% and 10.9%, in each case for the nine months ended September 30, 2021 and 2020, respectively. Expense is estimated based on the number of shares expected to vest, assuming the requisite service period is rendered and the probable outcome of the performance condition is achieved.  The estimate is revised if subsequent information indicates that the actual number of shares likely to vest differs from previous estimates. Expense is ultimately adjusted based on the actual achievement of service and performance targets. The PS will cliff vest 100% at the end of the third year following the grant in accordance with the performance metrics set forth.
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As of September 30, 2021 and 2020, there was $16,498 and $14,876, respectively, of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the plans. As of September 30, 2021, the unrecognized compensation cost is expected to be recognized over a weighted-average period of approximately 1.4 years. The Company estimates that share-based compensation expense for the year ended December 31, 2021 will be approximately $11,900.
REPURCHASE OF COMMON STOCK
The Company has an approved stock repurchase program. The total authorization under this program is 3,763,038 shares. Since the inception of the program in June 1999, a total of 2,715,595 shares have been purchased, of which 85,272 shares remained in treasury at September 30, 2021. The Company repurchases shares from employees in connection with settlement of transactions under the Company's equity incentive plans. The Company also intends to acquire shares from time to time at prevailing market prices if and to the extent it deems it advisable to do so based on its assessment of corporate cash flow, market conditions and other factors. During the nine months ended September 30, 2021 and 2020, the Company purchased 147,199 and 63,729 shares, respectively, from employees on a net-settlement basis to provide cash to employees to cover the associated employee payroll taxes and from open market purchases. These shares were purchased at an average cost of $127.46 and $93.87, respectively.

NOTE 3 – INVENTORIES
Inventories at September 30, 2021 and December 31, 2020 consisted of the following:
September 30, 2021December 31, 2020
Raw materials$20,876 $24,536 
Work in progress14,779 3,050 
Finished goods46,270 43,034 
Total inventories$81,925 $70,620 

NOTE 4 – PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment at September 30, 2021 and December 31, 2020 are summarized as follows:
 September 30, 2021December 31, 2020
Land$11,826 $12,215 
Building88,573 86,873 
Equipment251,618 247,884 
Construction in progress43,373 31,240 
 395,390 378,212 
Less: accumulated depreciation165,592 150,116 
Property, plant and equipment, net$229,798 $228,096 

NOTE 5 – INTANGIBLE ASSETS
The Company had goodwill in the amount of $525,419 and $529,463 as of September 30, 2021 and December 31, 2020, respectively, subject to the provisions of ASC 350, “Intangibles-Goodwill and Other.” The decrease in goodwill is due to foreign exchange translation adjustments.
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Identifiable intangible assets with finite lives at September 30, 2021 and December 31, 2020 are summarized as follows:
 Amortization
Period
(in years)
Gross Carrying Amount at
9/30/2021
Accumulated Amortization at 9/30/2021Gross Carrying Amount at 12/31/2020Accumulated Amortization at 12/31/2020
Customer relationships & lists
10-20
$240,992 $169,690 $243,557 $158,051 
Trademarks & trade names
2-17
43,140 28,047 43,208 24,974 
Developed technology
5-12
20,288 14,409 20,437 13,693 
Other
2-18
23,554 14,545 22,861 11,685 
 $327,974 $226,691 $330,063 $208,403 
Amortization of identifiable intangible assets was approximately $6,155 and $18,868 for the three and nine months ended September 30, 2021, respectively, and $6,911 and $20,875 for the three and nine months ended September 30, 2020, respectively. Assuming no change in the gross carrying value of identifiable intangible assets, estimated amortization expense is $6,134 for the remainder of 2021, $22,999 for 2022, $19,407 for 2023, $10,573 for 2024, $6,327 for 2025 and $4,986 for 2026. At September 30, 2021 and 2020, there were no identifiable intangible assets with indefinite useful lives as defined by ASC 350. Identifiable intangible assets are reflected in “Intangible assets with finite lives, net” in the Company’s condensed consolidated balance sheets. There were no changes to the useful lives of intangible assets subject to amortization during the nine months ended September 30, 2021 and 2020.

NOTE 6 – EQUITY-METHOD INVESTMENT
In 2013, the Company and Eastman Chemical Company (formerly Taminco Corporation) formed a joint venture (66.66% / 33.34% ownership), St. Gabriel CC Company, LLC, to design, develop, and construct an expansion of the Company’s St. Gabriel aqueous choline chloride plant. The Company contributed the St. Gabriel plant, at cost, and all continued expansion and improvements are funded by the owners. The joint venture became operational as of July 1, 2016. St. Gabriel CC Company, LLC is a Variable Interest Entity (VIE) because the total equity at risk is not sufficient to permit the joint venture to finance its own activities without additional subordinated financial support. Additionally, voting rights (2 votes each) are not proportionate to the owners’ obligation to absorb expected losses or receive the expected residual returns of the joint venture. The Company receives up to 2/3 of the production offtake capacity and absorbs operating expenses approximately proportional to the actual percentage of offtake. The joint venture is accounted for under the equity method of accounting since the Company is not the primary beneficiary as the Company does not have the power to direct the activities of the joint venture that most significantly impact its economic performance.  The Company recognized a loss of $142 and $416 for the three and nine months ended September 30, 2021, respectively, and $143 and $423 for the three and nine months ended September 30, 2020, respectively, relating to its portion of the joint venture's expenses in other expense. The Company made capital contributions to the investment, net of return of capital, totaling $46 and $31 for the three and nine months ended September 30, 2021, respectively, and $25 and $823 for the three and nine months ended September 30, 2020, respectively. The carrying value of the joint venture at September 30, 2021 and December 31, 2020 is $4,586 and $4,971, respectively, and is recorded in other assets.

NOTE 7 – REVOLVING LOAN
On June 27, 2018, the Company and a bank syndicate entered into a credit agreement (the "Credit Agreement"), which replaced the existing credit facility that had provided for a senior secured term loan of $350,000 and a revolving loan of $100,000.  The Credit Agreement, which expires on June 27, 2023, provides for revolving loans up to $500,000 (collectively referred to as the “loans”).  The loans may be used for working capital, letters of credit, and other corporate purposes and may be drawn upon at the Company’s discretion.  The initial proceeds from the Credit Agreement were used to repay the outstanding balance of $210,750 on its senior secured term loan, which was due May 2019. As of September 30, 2021 and December 31, 2020, the total balance outstanding on the Credit Agreement amounted to $108,569 and $163,569, respectively. There are no installment payments required on the revolving loans; they may be voluntarily prepaid in whole or in part without premium or penalty, and all outstanding amounts are due on the maturity date. 
Amounts outstanding under the Credit Agreement are subject to an interest rate equal to a fluctuating rate as defined by the Credit Agreement plus an applicable rate.  The applicable rate is based upon the Company’s consolidated net leverage ratio, as defined in the Credit Agreement, and the interest rate was 1.086% at September 30, 2021.  The Company is also required to pay a commitment fee on the unused portion of the revolving loan, which is based on the Company’s consolidated net leverage ratio as defined in the Credit Agreement and ranges from 0.15% to 0.275% (0.15% at September 30, 2021).  The unused portion of the revolving loan amounted to $391,431 at September 30, 2021.  The Company is also required to pay, as applicable, letter of credit fees, administrative agent fees, and other fees to the arrangers and lenders.
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Costs associated with the issuance of the revolving loans are capitalized and amortized on a straight-line basis over the term of the Credit Agreement, which is not materially different than the effective interest method.  Costs associated with the issuance of the extinguished debt instrument were capitalized and amortized over the term of the respective financing arrangement using the effective interest method. Capitalized costs net of accumulated amortization totaled $491 and $703 at September 30, 2021 and December 31, 2020, respectively, and are included in other assets on the condensed consolidated balance sheets. Amortization expense pertaining to these costs totaled $71 and $212, for both the three and nine months ended September 30, 2021 and 2020, and are included in interest expense in the accompanying condensed consolidated statements of earnings.
The Credit Agreement contains quarterly covenants requiring the consolidated leverage ratio to be less than a certain maximum ratio and the consolidated interest coverage ratio to exceed a certain minimum ratio.  At September 30, 2021, the Company was in compliance with these covenants.  Indebtedness under the Company’s Credit Agreement is secured by assets of the Company.

NOTE 8 –