Earnings Per Share

12 Months Ended

Dec. 31, 2021

18. Earnings Per Share

Below is the computation of basic and diluted earnings per share for the years ended December 31, 2021, 2020 and 2019:

(In thousands, except per share amounts)	2021		2020		2019
Computation of Basic Earnings per Share
Net income attributable to Stepan Company	$	137,804	$	126,770	$	103,129
Weighted-average number of shares outstanding		22,922		22,949		23,054
Basic earnings per share	$	6.01	$	5.52	$	4.47
Computation of Diluted Earnings per Share
Net income attributable to Stepan Company	$	137,804	$	126,770	$	103,129
Weighted-average number of shares outstanding		22,922		22,949		23,054
Add weighted-average net shares from assumed exercise of options (under treasury share method) ⁽¹⁾		138		112		97
Add weighted-average net shares related to unvested stock awards (under treasury share method)		1		1		2
Add weighted-average net shares from assumed exercise of SARs (under treasury share method)		166		145		125
Add weighted-average contingently issuable net shares related to performance stock awards (under treasury share method)		60		49		38
Weighted-average shares applicable to diluted earnings		23,287		23,256		23,316
Diluted earnings per share	$	5.92	$	5.45	$	4.42

(1)

Options/SARs to purchase 103,182, 127,434 and 107,125 shares of common stock were excluded from the computations of diluted earnings per share for the years ended December 31, 2021, 2020 and 2019, respectively. The options’/SARs’ exercise prices were greater than the average market price for the common stock and inclusion of the instruments would have had an antidilutive effect on the computations of the earnings per share.