Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission. These financial statements include all adjustments that are necessary for a fair presentation of the Company's condensed consolidated results of operations, financial condition and cash flows for the periods shown, including normal, recurring accruals and other items. The condensed consolidated results of operations for the interim periods presented are not necessarily indicative of results for the full year. For additional information, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report filed on Form 10-K for the year ended December 31, 2020. COVID-19 The global health crisis caused by COVID-19 and the related government actions and stay at home orders have negatively impacted economic activity and increased political instability across the globe. The outbreak could have a continued material adverse impact on economic and market conditions and trigger a period of global economic slowdown. There have been numerous obstacles presented and some localized financial impacts of the pandemic, including fluctuations in foreign currency exchange rates and customer demand and spending pattern changes. During the nine months ended September 30, 2021, the COVID-19 pandemic did not have a significant adverse impact on the Company’s results of operations. While the Company is following the requirements of governmental authorities and taking additional preventative and protective measures to ensure the safety of its workforce, including remote working arrangements and varying procedures for essential workforce, the outbreak presents some uncertainty and risk with respect to the Company and its performance and financial results. Adoption of Highly Inflationary Accounting in Argentina GAAP requires the use of highly inflationary accounting for countries whose cumulative three-year inflation rate exceeds 100 percent. The Company closely monitors the inflation data and currency volatility in Argentina, where there are multiple data sources for measuring and reporting inflation. In the second quarter of 2018, the Argentine peso rapidly devalued relative to the U.S. dollar, which along with increased inflation, indicated that the three-year cumulative inflation rate in that country exceeded 100 percent as of June 30, 2018. As a result, the Company elected to adopt highly inflationary accounting as of July 1, 2018 for its subsidiary in Argentina. Under highly inflationary accounting, the functional currency of the Company's subsidiary in Argentina became the U.S. dollar, and its income statement and balance sheet will be measured in U.S. dollars using both current and historical rates of exchange. The effect of changes in exchange rates on Argentine peso-denominated monetary assets and liabilities will be reflected in earnings. As the three-year cumulative inflation rate exceeded 100 percent as of September 30, 2021, there is no change to highly inflationary accounting. As of September 30, 2021, the Company’s subsidiary in Argentina had net assets of ($5.4) million. Net sales attributable to Argentina were approximately 5% and 6% of the Company’s consolidated net sales for the nine months ended September 30, 2021 and 2020, respectively. Disaggregation of Revenue The Company disaggregates revenue from contracts with customers into geographic region, product and timing of transfer of goods and services. The Company determined that disaggregating revenue into these categories achieves the disclosure objective of depicting how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Revenues for the three months ended September 30, 2021 (in thousands) Region North America EMEA Latin America Asia Pacific Total Revenues Product 1-MCP based $17,677 $23,286 $781 $1,569 $43,313 Fungicides, disinfectants and coatings 917 3,182 1,283 — 5,382 Other* 127 129 180 47 483 $18,721 $26,597 $2,244 $1,616 $49,178 Pattern of Revenue Recognition Products transferred at a point in time $18,603 $26,468 $2,064 $1,583 $48,718 Services transferred over time 118 129 180 33 460 $18,721 $26,597 $2,244 $1,616 $49,178 Revenues for the three months ended September 30, 2020 (in thousands) Region North America EMEA Latin America Asia Pacific Total Revenues Product 1-MCP based $17,122 $28,906 $845 $1,165 $48,038 Fungicides, disinfectants and coatings 534 3,011 575 — 4,120 Other* 190 115 210 97 612 $17,846 $32,032 $1,630 $1,262 $52,770 Pattern of Revenue Recognition Products transferred at a point in time $17,663 $31,921 $1,420 $1,165 $52,169 Services transferred over time 183 111 210 97 601 $17,846 $32,032 $1,630 $1,262 $52,770 Revenues for the nine months ended September 30, 2021 (in thousands) Region North America EMEA Latin America Asia Pacific Total Revenues Product 1-MCP based $20,020 $34,083 $25,145 $12,745 $91,993 Fungicides, disinfectants and coatings 931 11,044 3,829 — 15,804 Other* 519 602 981 195 2,297 $21,470 $45,729 $29,955 $12,940 $110,094 Pattern of Revenue Recognition Products transferred at a point in time $20,958 $45,131 $29,416 $12,774 $108,279 Services transferred over time 512 598 539 166 1,815 $21,470 $45,729 $29,955 $12,940 $110,094 Revenues for the nine months ended September 30, 2020 (in thousands) Region North America EMEA Latin America Asia Pacific Total Revenues Product 1-MCP based $19,264 $37,223 $23,217 $11,538 $91,242 Fungicides, disinfectants and coatings 534 9,650 1,750 — 11,934 Other* 722 700 938 239 2,599 $20,520 $47,573 $25,905 $11,777 $105,775 Pattern of Revenue Recognition Products transferred at a point in time $19,823 $46,887 $25,338 $11,538 $103,586 Services transferred over time 697 686 567 239 2,189 $20,520 $47,573 $25,905 $11,777 $105,775 *Other includes FreshCloud, technical services and sales-type equipment leases related to Tecnidex. (1) North America includes the United States and Canada. (2) EMEA includes Europe, the Middle East and Africa. (3) Latin America includes Argentina, Brazil, Chile, Costa Rica, Colombia, Dominican Republic, Ecuador, Guatemala, Mexico, Peru and Uruguay. (4) Asia Pacific includes Australia, China, India, Japan, New Zealand, the Philippines, South Korea, Taiwan and Thailand. Contract Assets and Liabilities Accounting Standards Codification ("ASC") 606 Revenue from contracts with Customers requires an entity to present a revenue contract as a contract asset when the entity performs its obligations under the contract by transferring goods or services to a customer before the customer pays consideration or before payment is due. ASC 606 also requires an entity to present a revenue contract as a contract liability in instances when a customer pays consideration, or an entity has a right to an amount of consideration that is unconditional (e.g., receivable), before the entity transfers a good or service to the customer. The following table presents changes in the Company’s contract assets and liabilities during the nine months ended September 30, 2021 and the year ended December 31, 2020: (in thousands) Balance at Additions Deductions Balance at Contract assets: Unbilled revenue $1,484 11,850 (9,855) $3,479 Contract liabilities: Deferred revenue $1,474 3,761 (3,911) $1,324 (in thousands) Balance at Additions Deductions Balance at Contract assets: Unbilled revenue $1,666 13,624 (13,806) $1,484 Contract liabilities: Deferred revenue $1,175 5,348 (5,049) $1,474 The Company recognizes contract assets in the form of unbilled revenue in instances where services are performed by the Company but not billed by period end. The Company recognizes contract liabilities in the form of deferred revenue in instances where a customer pays in advance for future services to be performed by the Company. The Company generally receives payments from its customers based on standard terms and conditions. No significant changes or impairment losses occurred to contract balances during the nine months ended September 30, 2021. Amounts reclassified from unbilled revenue to accounts receivable for the nine months ended September 30, 2021 and for the year ended December 31, 2020 were $9.9 million and $13.8 million, respectively. Amounts reclassified from deferred revenue to revenue for the nine months ended September 30, 2021 and for the year ended December 31, 2020 were $3.9 million and $5.0 million, respectively. Recently Issued Accounting Standards and Pronouncements In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2017-04, "Intangibles - Goodwill and Other", which simplifies the test for goodwill impairment. The guidance is effective for the Company beginning in the first quarter of fiscal year 2020. The Company adopted this standard on January 1, 2020. The adoption of this standard did not have a material impact on the condensed consolidated financial statements of the Company. In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments”, which introduces a new current expense credit loss model to measure impairment on certain types of financial instruments. This update requires an entity to use a forward-looking expected credit loss model for accounts receivables, loans, and other financial instruments. In addition, the FASB issued various amendments during 2018 and 2019 to clarify the provisions of ASU 2016-13. The standard was effective for fiscal years beginning January 1, 2020, including interim periods. The Company adopted the new guidance on January 1, 2020. The adoption of this standard did not have a material impact on the condensed consolidated financial statements of the Company. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, which is part of the FASB disclosure framework project to improve the effectiveness of disclosures in the notes to the financial statements. The amendments in the new guidance remove, modify and add certain disclosure requirements related to fair value measurements covered in Topic 820, "Fair Value Measurement". The new standard was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company adopted the new guidance on January 1, 2020. The adoption of this standard did not have a material impact on the notes to condensed consolidated financial statements of the Company. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments simplify the accounting for income taxes by removing certain exceptions to the general principles of Topic 740, "Income Taxes" and also improve consistent application by clarifying and amending existing guidance. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Company adopted the new guidance on January 1, 2021. The adoption of the new guidance did not have a material impact on the condensed consolidated financial statements of the Company. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments provide optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria |