Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 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 years ended December 31, 2012, 2011 and 2010. All share and per share data reflect the effects of the two-for-one common stock split that was effective December 14, 2012.

(In thousands, except per share amounts)	2012		2011		2010
Computation of Basic Earnings per Share
Net income attributable to Stepan Company	$	79,396	$	71,976	$	65,427
Deduct dividends on preferred stock		579		714		747
Income applicable to common stock	$	78,817	$	71,262	$	64,680
Weighted-average number of shares outstanding		21,273		20,726		20,326
Basic earnings per share	$	3.71	$	3.44	$	3.18
Computation of Diluted Earnings per Share
Net income attributable to Stepan Company	$	79,396	$	71,976	$	65,427
Weighted-average number of shares outstanding		21,273		20,726		20,326
Add weighted-average net shares from assumed exercise of options (under treasury stock method) (1)		392		472		516
Add weighted-average contingently issuable net shares related to performance stock awards (under treasury stock method)		12		52		98
Add weighted-average unvested stock awards (under treasury stock method)		6		4		2
Add weighted-average shares from assumed conversion of convertible preferred stock		1,047		1,186		1,238
Weighted-average shares applicable to diluted earnings		22,730		22,440		22,180
Diluted earnings per share	$	3.49	$	3.21	$	2.95

⁽¹⁾  Options to purchase 16,444, 91,449 and 1,090 shares of common stock were not included in the computations of diluted earnings per share for the years ended December 31, 2012, 2011 and 2010, respectively. The options’ exercise prices were greater than the average market price for the common stock and their effect would have been antidilutive.