Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2019

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, 2019, 2018 and 2017:

(In thousands, except per share amounts)	2019		2018		2017
Computation of Basic Earnings per Share
Net income attributable to Stepan Company ⁽¹⁾	$	103,129	$	111,117	$	100,774
Weighted-average number of shares outstanding		23,054		23,022		22,946
Basic earnings per share ⁽¹⁾	$	4.47	$	4.83	$	4.39
Computation of Diluted Earnings per Share
Net income attributable to Stepan Company ⁽¹⁾	$	103,129	$	111,117	$	100,774
Weighted-average number of shares outstanding		23,054		23,022		22,946
Add weighted-average net shares from assumed exercise of options (under treasury share method) ⁽²⁾		97		101		161
Add weighted-average net shares related to unvested stock awards (under treasury share method)		2		3		8
Add weighted-average net shares from assumed exercise of SARs (under treasury share method)		125		110		142
Add weighted-average contingently issuable net shares related to performance stock awards (under treasury share method)		38		89		120
Weighted-average shares applicable to diluted earnings		23,316		23,325		23,377
Diluted earnings per share ⁽¹⁾	$	4.42	$	4.76	$	4.31

(1)

The 2018 and 2017 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 purchase 107,125, 50,770 and 18,630 shares of common stock were not included in the computations of diluted earnings per share for the years ended December 31, 2019, 2018 and 2017, respectively. The options’/SARs’ exercise prices were greater than the average market price for the common stock and the effect of the options/SARs on earnings per share would have been antidilutive.