Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2020

Computations of Basic and Diluted Earnings Per Share

Below are the computations of basic and diluted earnings per share for the three and nine months ended September 30, 2020 and 2019:

(In thousands, except per share amounts)	Three Months Ended September 30				Nine Months Ended September 30
	2020		2019		2020		2019
Computation of Basic Earnings per Share
Net income attributable to Stepan Company	$	33,168	$	25,889	$	96,420	$	81,091
Weighted-average number of common shares outstanding		22,907		23,025		22,951		23,070
Basic earnings per share	$	1.45	$	1.12	$	4.20	$	3.52

Computation of Diluted Earnings per Share
Net income attributable to Stepan Company	$	33,168	$	25,889	$	96,420	$	81,091
Weighted-average number of shares outstanding		22,907		23,025		22,951		23,070
Add weighted-average net shares from assumed exercise of options (under treasury stock method) ⁽¹⁾		119		102		107		95
Add weighted-average net shares related to unvested stock awards (under treasury stock method)		1		1		1		2
Add weighted-average net shares from assumed exercise of SARs (under treasury stock method) ⁽¹⁾		164		135		139		120
Add weighted-average contingently issuable net shares related to performance stock awards (under treasury stock method)		46		37		38		33
Weighted-average shares applicable to diluted earnings		23,237		23,300		23,236		23,320
Diluted earnings per share	$	1.43	$	1.11	$	4.15	$	3.48

⁽¹⁾ Options/SARs to acquire 169,912 shares of Company common stock were excluded from the computations of diluted earnings per share for the nine months ended September 30, 2020. Options/SARs to acquire 142,833 shares of Company common stock were excluded from the computations of diluted earnings per share for the nine months ended September 30, 2019. Inclusion of the instruments would have had antidilutive effects on the computations of the earnings per share.