Earnings Per Share

3 Months Ended

Mar. 31, 2023

10.

EARNINGS PER SHARE

Below are the computations of basic and diluted earnings per share for the three months ended March 31, 2023 and 2022:


(In thousands, except per share amounts)	Three Months Ended March 31,
	2023		2022
Computation of Basic Earnings per Share
Net income attributable to Stepan Company	$	16,142	$	44,809
Weighted-average number of common shares outstanding		22,757		22,896
Basic earnings per share	$	0.71	$	1.96

Computation of Diluted Earnings per Share
Net income attributable to Stepan Company	$	16,142	$	44,809
Weighted-average number of shares outstanding		22,757		22,896
Add weighted-average net shares from assumed exercise of options (under treasury stock method)(1)		99		99
Add weighted-average net shares related to unvested stock awards (under treasury stock method)		1		—
Add weighted-average net shares from assumed exercise of SARs (under treasury stock method)(1)		108		120
Add weighted-average contingently issuable net shares related to performance stock awards (under treasury stock method)		29		52
Weighted-average shares applicable to diluted earnings		22,994		23,167
Diluted earnings per share	$	0.70	$	1.93

(1)

403,711 and 364,350 options/SARs to acquire shares of the Company's common stock were excluded from the computation of dilutive earnings per share for the three months ended March 31, 2023 and 2022, 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 the earnings per share.