Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2019

Computation of Basic and Diluted Earnings Per Share

Below are the computations of basic and diluted earnings per share for the three and six months ended June 30, 2019 and 2018:

(In thousands, except per share amounts)	Three Months Ended June 30				Six Months Ended June 30
	2019		2018 As Adjusted		2019		2018 As Adjusted
Computation of Basic Earnings per Share
Net income attributable to Stepan Company ⁽¹⁾	$	30,218	$	33,454	$	55,202	$	65,406
Weighted-average number of common shares outstanding		23,086		23,039		23,092		23,059
Basic earnings per share ⁽¹⁾	$	1.31	$	1.45	$	2.39	$	2.84

Computation of Diluted Earnings per Share
Net income attributable to Stepan Company ⁽¹⁾	$	30,218	$	33,454	$	55,202	$	65,406
Weighted-average number of shares outstanding		23,086		23,039		23,092		23,059
Add weighted-average net shares from assumed exercise of options (under treasury stock method) ⁽²⁾		90		87		91		103
Add weighted-average net shares related to unvested stock awards (under treasury stock method)		2		2		2		2
Add weighted-average net shares from assumed exercise of SARs (under treasury stock method) ⁽²⁾		118		99		113		111
Add weighted-average contingently issuable net shares related to performance stock awards (under treasury stock method)		33		68		31		66
Weighted-average shares applicable to diluted earnings		23,329		23,295		23,329		23,341
Diluted earnings per share⁽¹⁾	$	1.30	$	1.44	$	2.37	$	2.80

⁽¹⁾

The 2018 amounts for the noted line items have been retrospectively 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 215,257 and 214,749 shares of Company common stock were excluded from the computations of diluted earnings per share for the three and six months ended June 30, 2019, respectively. Options/SARs to acquire 194,949 and 98,878 shares of Company common stock were excluded from the computations of diluted earnings per share for the three and six months ended June 30, 2018, respectively. Inclusion of the instruments would have had antidilutive effects on the computations of the earnings per share.