Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2019

Computation of Basic and Diluted Earnings Per Share

Below are the computations of basic and diluted earnings per share for the three months ended March 31, 2019 and 2018:

(In thousands, except per share amounts)	Three Months Ended March 31
	2019		2018 As Adjusted
Computation of Basic Earnings per Share
Net income attributable to Stepan Company ⁽¹⁾	$	24,984	$	31,952
Weighted-average number of common shares outstanding		23,099		23,082
Basic earnings per share ⁽¹⁾	$	1.08	$	1.38

Computation of Diluted Earnings per Share
Net income attributable to Stepan Company ⁽¹⁾	$	24,984	$	31,952
Weighted-average number of shares outstanding		23,099		23,082
Add weighted-average net shares from assumed exercise of options (under treasury stock method) ⁽²⁾		92		119
Add weighted-average net shares related to unvested stock awards (under treasury stock method)		3		2
Add weighted-average net shares from assumed exercise of SARs (under treasury stock method) ⁽²⁾		108		122
Add weighted-average contingently issuable net shares related to performance stock awards (under treasury stock method)		30		64
Weighted-average shares applicable to diluted earnings		23,332		23,389
Diluted earnings per share⁽¹⁾	$	1.07	$	1.37

⁽¹⁾

The 2018 amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO.

⁽²⁾ Options/SARs to acquire 214,241 and 2,807 shares of Company common stock were excluded from the computations of diluted earnings per share for the three months ended March 31, 2019 and March 31, 2018, because the effect of including the instruments would have been antidilutive.