Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2022

Computation of Basic and Diluted Earnings Per Share

Below is the computation of basic and diluted earnings per share for the years ended December 31, 2022, 2021 and 2020:


(In thousands, except per share amounts)	2022		2021		2020
Computation of Basic Earnings per Share
Net income attributable to Stepan Company	$	147,153	$	137,804	$	126,770
Weighted-average number of shares outstanding		22,781		22,922		22,949
Basic earnings per share	$	6.46	$	6.01	$	5.52
Computation of Diluted Earnings per Share
Net income attributable to Stepan Company	$	147,153	$	137,804	$	126,770
Weighted-average number of shares outstanding		22,781		22,922		22,949
Add weighted-average net shares from assumed exercise of options (under treasury share method) (1)		104		138		112
Add weighted-average net shares related to unvested stock awards (under treasury share method)		1		1		1
Add weighted-average net shares from assumed exercise of SARs (under treasury share method)		111		166		145
Add weighted-average contingently issuable net shares related to performance stock awards (under treasury share method)		67		60		49
Weighted-average shares applicable to diluted earnings		23,064		23,287		23,256
Diluted earnings per share	$	6.38	$	5.92	$	5.45

(1)

Options/SARs to purchase 343,715, 103,182 and 127,434 shares of the Company’s common stock were excluded from the computations of diluted earnings per share for the years ended December 31, 2022, 2021 and 2020, respectively. The options’/SARs’ exercise prices were greater than the average market price for the Company’s common stock and inclusion of the instruments would have had an antidilutive effect on the computations of earnings per share.