Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2012

Earnings Per Share [Abstract]

Computation of basic and diluted earnings per share

Below is the computation of basic and diluted earnings per share for the three and six months ended June 30, 2012 and 2011.

(In thousands, except per share amounts)	Three Months Ended June  30				Six Months Ended June  30
	2012		2011		2012		2011
Computation of Basic Earnings per Share
Net income attributable to Stepan Company	$	21,425	$	20,867	$	43,727	$	39,628
Deduct dividends on preferred stock		177		179		355		358
Income applicable to common stock	$	21,248	$	20,688	$	43,372	$	39,270
Weighted-average number of common shares outstanding		10,550		10,345		10,537		10,335
Basic earnings per share	$	2.01	$	2.00	$	4.12	$	3.80
Computation of Diluted Earnings per Share
Net income attributable to Stepan Company	$	21,425	$	20,867	$	43,727	$	39,628
Weighted-average number of shares outstanding		10,550		10,345		10,537		10,335
Add weighted-average net shares issuable from assumed exercise of options (under treasury stock method) (1)		212		237		213		244
Add weighted-average net shares related to unvested stock awards (under treasury stock method)		3		2		3		2
Add weighted-average shares issuable from assumed conversion of convertible preferred stock		592		594		592		594
Weighted-average shares applicable to diluted earnings		11,357		11,178		11,345		11,175
Diluted earnings per share	$	1.89	$	1.87	$	3.85	$	3.55

⁽¹⁾  Options to purchase 255 and 16,444 shares of common stock were not included in the computations of diluted earnings per share for the three and six months ended June 30, 2012, respectively. Options to purchase 63,167 and 61,516 shares of common stock were not included in the computations of diluted earnings per share for the three and six months ended June 30, 2011, respectively. The options’ exercise prices were greater than the average market price for the common stock and their effect would have been antidilutive.