Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 27, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'SCL | ' |
Entity Registrant Name | 'STEPAN CO | ' |
Entity Central Index Key | '0000094049 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 22,248,592 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Net Sales | $491,429 | $475,466 | $1,472,982 | $1,406,457 |
Cost of Sales | 426,330 | 401,125 | 1,273,270 | 1,185,709 |
Gross Profit | 65,099 | 74,341 | 199,712 | 220,748 |
Operating Expenses: | ' | ' | ' | ' |
Selling | 16,816 | 12,895 | 44,455 | 41,063 |
Administrative | 14,933 | 18,127 | 38,416 | 49,008 |
Research, development and technical services | 11,097 | 12,234 | 35,151 | 35,429 |
Total Operating expenses | 42,846 | 43,256 | 118,022 | 125,500 |
Operating Income | 22,253 | 31,085 | 81,690 | 95,248 |
Other Income (Expense): | ' | ' | ' | ' |
Interest, net | -2,846 | -2,987 | -8,824 | -7,495 |
Loss from equity in joint ventures | -1,148 | -1,325 | -3,842 | -4,061 |
Other, net (Note 13) | -31 | 1,074 | 499 | 1,628 |
Nonoperating Income (Expense), Total | -4,025 | -3,238 | -12,167 | -9,928 |
Income Before Provision for Income Taxes | 18,228 | 27,847 | 69,523 | 85,320 |
Provision for Income Taxes | 4,748 | 7,698 | 18,667 | 23,520 |
Net Income | 13,480 | 20,149 | 50,856 | 61,800 |
Net Loss Attributable to Noncontrolling Interests (Note 2) | 11 | 253 | 6 | 378 |
Net Income Attributable to Stepan Company | $13,491 | $20,402 | $50,862 | $62,178 |
Net Income Per Common Share Attributable to Stepan Company (Note 9): | ' | ' | ' | ' |
Basic | $0.59 | $0.90 | $2.24 | $2.75 |
Diluted | $0.59 | $0.89 | $2.22 | $2.71 |
Shares Used to Compute Net Income Per Common Share Attributable to Stepan Company (Note 9): | ' | ' | ' | ' |
Basic | 22,726 | 22,700 | 22,754 | 22,576 |
Diluted | 22,875 | 22,936 | 22,923 | 22,914 |
Dividends Declared Per Common Share | $0.17 | $0.16 | $0.51 | $0.48 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $13,480 | $20,149 | $50,856 | $61,800 |
Other comprehensive income (loss): | ' | ' | ' | ' |
Foreign currency translation adjustments (Note 10) | -19,521 | 5,752 | -15,709 | -6,806 |
Pension liability adjustment, net of tax (Note 10) | 429 | 810 | 1,249 | 2,538 |
Derivative instrument activity, net of tax (Note 10) | 2 | 3 | 6 | -18 |
Other comprehensive income (loss) | -19,090 | 6,565 | -14,454 | -4,286 |
Comprehensive income (loss) | -5,610 | 26,714 | 36,402 | 57,514 |
Comprehensive (income) loss attributable to noncontrolling interests (Note 2) | -14 | 248 | 28 | 344 |
Comprehensive income (loss) attributable to Stepan Company | ($5,624) | $26,962 | $36,430 | $57,858 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and cash equivalents | $88,707 | $133,347 |
Receivables, net | 288,498 | 265,721 |
Inventories (Note 6) | 196,829 | 172,368 |
Deferred income taxes | 12,213 | 12,637 |
Other current assets | 22,768 | 24,477 |
Total current assets | 609,015 | 608,550 |
Property, Plant and Equipment: | ' | ' |
Cost | 1,360,681 | 1,316,499 |
Less: accumulated depreciation | 856,762 | 822,457 |
Property, plant and equipment, net | 503,919 | 494,042 |
Goodwill, net | 11,587 | 11,726 |
Other intangible assets, net | 21,517 | 23,669 |
Long-term investments (Note 3) | 19,529 | 18,305 |
Other non-current assets | 12,941 | 10,910 |
Total assets | 1,178,508 | 1,167,202 |
Current Liabilities: | ' | ' |
Current maturities of long-term debt (Note 12) | 36,356 | 35,377 |
Accounts payable | 167,980 | 157,277 |
Accrued liabilities | 67,977 | 76,339 |
Total current liabilities | 272,313 | 268,993 |
Deferred income taxes | 22,858 | 20,616 |
Long-term debt, less current maturities (Note 12) | 228,806 | 235,246 |
Other non-current liabilities | 78,688 | 88,606 |
Commitments and Contingencies (Note 7) | ' | ' |
Equity: | ' | ' |
Common stock, $1 par value; authorized 30,000,000 shares; Issued 25,633,035 shares in 2014 and 25,563,909 shares in 2013 | 25,633 | 25,564 |
Additional paid-in capital | 139,363 | 135,693 |
Accumulated other comprehensive loss (Note 10) | -43,960 | -29,528 |
Retained earnings | 518,307 | 478,826 |
Less: Common treasury stock, at cost, 3,354,477 shares in 2014 and 3,231,289 shares in 2013 | -64,927 | -58,269 |
Total Stepan Company stockholders' equity | 574,416 | 552,286 |
Noncontrolling interests (Note 2) | 1,427 | 1,455 |
Total equity | 575,843 | 553,741 |
Total liabilities and equity | $1,178,508 | $1,167,202 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Common stock, par value | $1 | $1 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 25,633,035 | 25,563,909 |
Treasury stock, shares | 3,354,477 | 3,231,289 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash Flows From Operating Activities | ' | ' |
Net income | $50,856 | $61,800 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 47,933 | 41,450 |
Deferred compensation | -9,755 | 3,492 |
Realized and unrealized gain on long-term investments | -743 | -2,186 |
Stock-based compensation | 606 | 1,420 |
Deferred income taxes | 1,996 | 2,793 |
Other non-cash items | 4,508 | 5,871 |
Changes in assets and liabilities: | ' | ' |
Receivables, net | -30,987 | -41,145 |
Inventories | -28,277 | -9,631 |
Other current assets | 154 | -5,867 |
Accounts payable and accrued liabilities | 8,375 | 26,585 |
Pension liabilities | -2,267 | 1,358 |
Environmental and legal liabilities | 3,667 | -651 |
Deferred revenues | -549 | -305 |
Excess tax benefit from stock options and awards | -621 | -3,278 |
Net Cash Provided By Operating Activities | 44,896 | 81,706 |
Cash Flows From Investing Activities | ' | ' |
Expenditures for property, plant and equipment | -62,413 | -67,077 |
Business acquisition (Note 16) | ' | -68,212 |
Sale of mutual funds | 890 | 571 |
Other, net | -5,790 | -5,142 |
Net Cash Used In Investing Activities | -67,313 | -139,860 |
Cash Flows From Financing Activities | ' | ' |
Revolving debt and bank overdrafts, net | 2,964 | 6,412 |
Other debt borrowings | ' | 100,000 |
Other debt repayments | -6,322 | -12,567 |
Dividends paid | -11,381 | -10,678 |
Company stock repurchased | -6,589 | -2,275 |
Stock option exercises | 1,563 | 3,715 |
Excess tax benefit from stock options and awards | 621 | 3,278 |
Other, net | -433 | -1,606 |
Net Cash Provided By (Used In) Financing Activities | -19,577 | 86,279 |
Effect of Exchange Rate Changes on Cash | -2,646 | -1,912 |
Net Increase (Decrease) in Cash and Cash Equivalents | -44,640 | 26,213 |
Cash and Cash Equivalents at Beginning of Period | 133,347 | 76,875 |
Cash and Cash Equivalents at End of Period | 88,707 | 103,088 |
Supplemental Cash Flow Information | ' | ' |
Cash payments of income taxes, net of refunds | 19,402 | 18,151 |
Cash payments of interest | $6,763 | $5,482 |
Condensed_Consolidated_Financi
Condensed Consolidated Financial Statements | 9 Months Ended | |
Sep. 30, 2014 | ||
Accounting Policies [Abstract] | ' | |
Condensed Consolidated Financial Statements | ' | |
1 | CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | |
The condensed consolidated financial statements included herein have been prepared by Stepan Company (Company), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations, although management believes that the disclosures are adequate and make the information presented not misleading. In the opinion of management, all adjustments, consisting only of normal recurring accruals, necessary to present fairly the Company’s financial position as of September 30, 2014, and its results of operations for the three and nine months ended September 30, 2014 and 2013, and cash flows for the nine months ended September 30, 2014 and 2013, have been included. These financial statements and related footnotes should be read in conjunction with the financial statements and related footnotes included in the Company’s 2013 Form 10-K. |
Reconciliations_of_Equity
Reconciliations of Equity | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Reconciliations of Equity | ' | ||||||||||||
2 | RECONCILIATIONS OF EQUITY | ||||||||||||
Below are reconciliations of total equity, Company equity and equity attributable to the noncontrolling interests for the nine months ended September 30, 2014 and 2013: | |||||||||||||
(In thousands) | Total Equity | Stepan | Noncontrolling | ||||||||||
Company | Interests’ | ||||||||||||
Equity | Equity (3) | ||||||||||||
Balance at January 1, 2014 | $ | 553,741 | $ | 552,286 | $ | 1,455 | |||||||
Net income (loss) | 50,856 | 50,862 | (6 | ) | |||||||||
Dividends | (11,381 | ) | (11,381 | ) | — | ||||||||
Common stock purchases (1) | (6,723 | ) | (6,723 | ) | — | ||||||||
Stock option exercises | 1,563 | 1,563 | — | ||||||||||
Defined benefit pension adjustments, net of tax | 1,249 | 1,249 | — | ||||||||||
Translation adjustments | (15,709 | ) | (15,687 | ) | (22 | ) | |||||||
Derivative instrument activity, net of tax | 6 | 6 | — | ||||||||||
Other (2) | 2,241 | 2,241 | — | ||||||||||
Balance at September 30, 2014 | $ | 575,843 | $ | 574,416 | $ | 1,427 | |||||||
(In thousands) | Total Equity | Stepan | Noncontrolling | ||||||||||
Company | Interests’ | ||||||||||||
Equity | Equity (3) | ||||||||||||
Balance at January 1, 2013 | $ | 480,880 | $ | 478,985 | $ | 1,895 | |||||||
Net income (loss) | 61,800 | 62,178 | (378 | ) | |||||||||
Dividends | (10,678 | ) | (10,678 | ) | — | ||||||||
Common stock purchases (1) | (3,334 | ) | (3,334 | ) | — | ||||||||
Redemption of preferred stock | (21 | ) | (21 | ) | — | ||||||||
Stock option exercises | 3,715 | 3,715 | — | ||||||||||
Defined benefit pension adjustments, net of tax | 2,538 | 2,538 | — | ||||||||||
Translation adjustments | (6,806 | ) | (6,840 | ) | 34 | ||||||||
Derivative instrument activity, net of tax | (18 | ) | (18 | ) | — | ||||||||
Other (2) | 4,750 | 4,750 | — | ||||||||||
Balance at September 30, 2013 | $ | 532,826 | $ | 531,275 | $ | 1,551 | |||||||
(1) | Includes the value of Company shares purchased in the open market, the value of Company common shares tendered by employees to settle minimum statutory withholding taxes related to the receipt of performance awards and deferred compensation distributions. | ||||||||||||
(2) | Primarily comprised of activity related to stock-based compensation, deferred compensation and excess tax benefits. | ||||||||||||
(3) | Consists entirely of noncontrolling interest in the Company’s China joint venture. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
3 | FAIR VALUE MEASUREMENTS | ||||||||||||||||
The following were the financial instruments held by the Company at September 30, 2014 and December 31, 2013, and the methods and assumptions used to estimate the instruments’ fair values: | |||||||||||||||||
Cash and cash equivalents | |||||||||||||||||
Carrying value approximates fair value because of the short maturity of the instruments. | |||||||||||||||||
Derivative assets and liabilities | |||||||||||||||||
Derivative assets and liabilities relate to the foreign currency exchange and interest rate contracts discussed in Note 4. Fair value and carrying value were the same because the contracts were recorded at fair value. The fair values of the foreign currency contracts were calculated as the difference between the applicable forward foreign exchange rates at the reporting date and the contracted foreign exchange rates multiplied by the contracted notional amounts. The fair values of the interest rate swaps were calculated as the difference between the contracted swap rate and the current market replacement swap rate multiplied by the present value of one basis point for the notional amount of the contract. See the table that follows these financial instrument descriptions for the reported fair values of derivative assets and liabilities. | |||||||||||||||||
Long-term investments | |||||||||||||||||
Long-term investments included the mutual fund assets the Company held at the reporting dates to fund a portion of its deferred compensation liabilities and all of its non-qualified supplemental executive defined contribution obligations (see the defined contribution plans section of Note 8). Fair value and carrying value were the same because the mutual fund assets were recorded at fair value in accordance with the fair value option rules set forth in the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 825, Financial Instruments. Fair values for the mutual funds were calculated using the published market price per unit at the reporting date multiplied by the number of units held at the reporting date. See the table that follows these financial instrument descriptions for the reported fair value of long-term investments. | |||||||||||||||||
Debt obligations | |||||||||||||||||
The fair value of debt with original maturities greater than one year comprised the combined present values of scheduled principal and interest payments for each of the various loans, individually discounted at rates equivalent to those which could be obtained by the Company for new debt issues with durations equal to the average life to maturity of each loan. The fair values of the remaining Company debt obligations approximated their carrying values due to the short-term nature of the debt. The Company’s fair value measurements for debt fall in level 2 of the fair value hierarchy. | |||||||||||||||||
At September 30, 2014, and December 31, 2013, the fair value of debt and the related carrying values, including current maturities, were as follows: | |||||||||||||||||
(In thousands) | September 30, 2014 | December 31, 2013 | |||||||||||||||
Fair value | $ | 276,956 | $ | 276,069 | |||||||||||||
Carrying value | 265,162 | 270,623 | |||||||||||||||
The following tables present financial assets and liabilities measured on a recurring basis at fair value as of September 30, 2014, and December 31, 2013, and the level within the fair value hierarchy in which the fair value measurement falls: | |||||||||||||||||
(In thousands) | September | Level 1 | Level 2 | Level 3 | |||||||||||||
2014 | |||||||||||||||||
Mutual fund assets | $ | 19,529 | $ | 19,529 | $ | — | $ | — | |||||||||
Derivative assets: | |||||||||||||||||
Foreign currency contracts | 41 | — | 41 | — | |||||||||||||
Total assets at fair value | $ | 19,570 | $ | 19,529 | $ | 41 | $ | — | |||||||||
Derivative liabilities: | |||||||||||||||||
Foreign currency contracts | $ | 376 | $ | — | $ | 376 | $ | — | |||||||||
(In thousands) | December | Level 1 | Level 2 | Level 3 | |||||||||||||
2013 | |||||||||||||||||
Mutual fund assets | $ | 18,305 | $ | 18,305 | $ | — | $ | — | |||||||||
Derivative assets: | |||||||||||||||||
Foreign currency contracts | 74 | — | 74 | — | |||||||||||||
Total assets at fair value | $ | 18,379 | $ | 18,305 | $ | 74 | $ | — | |||||||||
Derivative liabilities: | |||||||||||||||||
Foreign currency contracts | $ | 165 | $ | — | $ | 165 | $ | — | |||||||||
Interest rate contracts | 20 | — | 20 | — | |||||||||||||
Total liabilities at fair value | $ | 185 | $ | — | $ | 185 | $ | — | |||||||||
Derivative_Instruments
Derivative Instruments | 9 Months Ended | |
Sep. 30, 2014 | ||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |
Derivative Instruments | ' | |
4 | DERIVATIVE INSTRUMENTS | |
The Company is exposed to certain risks relating to its ongoing business operations. The primary risk managed by the use of derivative instruments is foreign currency exchange risk. The Company holds forward foreign currency exchange contracts that are not designated as any type of accounting hedge as defined by U.S. generally accepted accounting principles (although they are effectively economic hedges). The contracts are used to manage the Company’s exposure to exchange rate fluctuations on certain Company subsidiary accounts receivable, accounts payable and other obligation balances that are denominated in currencies other than the entities’ functional currencies. The forward foreign exchange contracts are recognized on the balance sheet as either an asset or a liability measured at fair value. Gains and losses arising from recording the foreign exchange contracts at fair value are reported in earnings as offsets to the losses and gains reported in earnings arising from the re-measurement of the receivable and payable balances into the applicable functional currencies. At September 30, 2014, and December 31, 2013, the Company had open forward foreign currency exchange contracts, with settlement dates of about one month, to buy or sell foreign currencies with a U.S. dollar equivalent of $21,465,000 and $20,289,000, respectively. | ||
The Company is exposed to volatility in short-term interest rates and, at times, mitigates certain portions of that risk by using interest rate swaps, which are designated as cash flow hedges. The interest rate swaps are recognized on the balance sheet as either an asset or a liability measured at fair value. The Company held no interest rate swap contracts at September 30, 2014. At December 31, 2013, the Company held interest rate contracts with notional values of $2,268,000. Period-to-period changes in the fair values of interest rate swap contracts are recognized as gains or losses in other comprehensive income, to the extent effective. As each interest rate swap hedge contract settles, the corresponding gain or loss is reclassified out of AOCI into earnings in that settlement period. | ||
The fair values of the derivative instruments held by the Company on September 30, 2014, and December 31, 2013, and derivative instrument gains and losses for the three and nine month periods ended September 30, 2014 and 2013, were immaterial. For amounts reclassified out of AOCI into earnings for the three and nine months periods ended September 30, 2014 and 2013, see Note 10. |
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | ||||||||||||||
Sep. 30, 2014 | |||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||
5 | STOCK-BASED COMPENSATION | ||||||||||||||
On September 30, 2014, the Company had stock options outstanding under its 2000 Stock Option Plan, stock options and stock awards outstanding under its 2006 Incentive Compensation Plan and stock options, stock awards and stock appreciation rights (SARs) outstanding under its 2011 Incentive Compensation Plan. | |||||||||||||||
Compensation (income) expense recognized for all stock options, stock awards and SARs in the consolidated statements of income was as follows: | |||||||||||||||
(In thousands) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30 | September 30 | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
$ | (164 | ) | $ | 996 | $ | 606 | $ | 1,420 | |||||||
The decline in stock-based compensation expense for the three- and nine-month periods ended September 30, 2014, compared to the three- and nine-month periods ended September 30, 2013, reflected adjustments to both performance stock awards and SARs. In their third quarter review, management adjusted the profitability estimates on which the compensation expenses for stock awards vesting on December 31, 2015 and 2016 were based, thereby reducing the number of shares expected to vest and the related compensation expense. In addition, due to a decrease in the market value of Company common stock, the fair value of SARs at September 30, 2014, declined, resulting in a reduction of the Company’s SARs liability that led to reversing compensation expense recorded in prior periods. | |||||||||||||||
Unrecognized compensation costs for stock options, stock awards and SARs was as follows: | |||||||||||||||
(In thousands) | September 30, | December 31, | |||||||||||||
2014 | 2013 | ||||||||||||||
Stock options | $ | 1,068 | $ | 756 | |||||||||||
Stock awards | 2,316 | 2,086 | |||||||||||||
SARs | 1,174 | 1,365 | |||||||||||||
Total | $ | 4,558 | $ | 4,207 | |||||||||||
The increase in unrecognized compensation costs for stock options, SARs and stock awards reflected the 2014 grants of | |||||||||||||||
Shares | |||||||||||||||
Stock options | 53,175 | ||||||||||||||
Stock awards | 45,586 | ||||||||||||||
SARs | 116,843 | ||||||||||||||
The unrecognized compensation costs at September 30, 2014, are expected to be recognized over weighted-average periods of 1.2 years, 1.9 years and 1.3 years for stock options, stock awards and SARs, respectively. | |||||||||||||||
Inventories
Inventories | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
6 | INVENTORIES | ||||||||
The composition of inventories was as follows: | |||||||||
(In thousands) | September 30, | December 31, | |||||||
2014 | 2013 | ||||||||
Finished goods | $ | 136,703 | $ | 123,212 | |||||
Raw materials | 60,126 | 49,156 | |||||||
Total inventories | $ | 196,829 | $ | 172,368 | |||||
Inventories are priced primarily using the last-in, first-out inventory valuation method. If the first-in, first-out inventory valuation method had been used for all inventories, inventory balances would have been approximately $36,296,000 and $30,786,000 higher than reported at September 30, 2014, and December 31, 2013, respectively. |
Contingencies
Contingencies | 9 Months Ended | |
Sep. 30, 2014 | ||
Commitments and Contingencies Disclosure [Abstract] | ' | |
Contingencies | ' | |
7 | CONTINGENCIES | |
There are a variety of legal proceedings pending or threatened against the Company. Some of these proceedings may result in fines, penalties, judgments or costs being assessed against the Company at some future time. The Company’s operations are subject to extensive local, state and federal regulations, including the U.S. Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA) and the Superfund amendments of 1986 (Superfund). Over the years, the Company has received requests for information related to or has been named by the government as a potentially responsible party (PRP) at a number of waste disposal sites where clean up costs have been or may be incurred under CERCLA and similar state or local statutes. In addition, damages are being claimed against the Company in general liability actions for alleged personal injury or property damage in the case of some disposal and plant sites. The Company believes that it has made adequate provisions for the costs it may incur with respect to these sites. | ||
At September 30, 2014, the Company has estimated a range of possible environmental and legal losses of $19.1 million to $29.0 million. At September 30, 2014, and December 31, 2013, the Company’s accrued liability for such losses, which represented the Company’s best estimate within the estimated range of possible environmental and legal losses, was $19.2 million and $14.7 million, respectively. The increase in the environmental and legal liability was primarily attributable to a $4.3 million increase in the estimate to remediate the Company’s Maywood, New Jersey site. See the ‘Maywood, New Jersey Site’ section of this footnote for further information. During the first nine months of 2014 cash outlays related to legal and environmental matters approximated $0.8 million compared to $1.8 million for the first nine months of 2013. | ||
For certain sites, the Company has responded to information requests made by federal, state or local government agencies but has received no response confirming or denying the Company’s stated positions. As such, estimates of the total costs, or range of possible costs, of remediation, if any, or the Company’s share of such costs, if any, cannot be determined with respect to these sites. Consequently, the Company is unable to predict the effect thereof on the Company’s financial position, cash flows and results of operations. Given the information available, management believes the Company has no liability at these sites. However, in the event of one or more adverse determinations with respect to such sites in any annual or interim period, the effect on the Company’s cash flows and results of operations for those periods could be material. Based upon the Company’s present knowledge with respect to its involvement at these sites, the possibility of other viable entities’ responsibilities for cleanup, and the extended period over which any costs would be incurred, the Company believes that these matters, individually and in the aggregate, will not have a material effect on the Company’s financial position. | ||
Following are summaries of the material contingencies at September 30, 2014: | ||
Maywood, New Jersey Site | ||
The Company’s property in Maywood, New Jersey and property formerly owned by the Company adjacent to its current site and other nearby properties (Maywood site) were listed on the National Priorities List in September 1993 pursuant to the provisions of CERCLA because of certain alleged chemical contamination. Pursuant to an Administrative Order on Consent entered into between USEPA and the Company for property formerly owned by the Company, and the issuance of an order by USEPA to the Company for property currently owned by the Company, the Company has completed various Remedial Investigation Feasibility Studies (RI/FS) and has recorded a liability based on its best estimate of the remediation costs. | ||
On September 24, 2014, USEPA issued its Record of Decision (“ROD”) for chemically-contaminated soil. In addition, USEPA issued a Notice of Potential Liability letter (“Notice”) dated September 30, 2014. The Company has responded to the notice indicating a willingness to meet and discuss these matters with USEPA. Based on its current review and analysis of the ROD, the Company has increased its recorded liability for claims associated with soil remediation of chemical contamination by $4.3 million and believes such increase represents its best estimate of the cost of remediation for the Maywood site. The Company’s best estimate of the cost of remediation for the Maywood site could change as it continues to discuss these matters with USEPA and the design of the remedial action progresses. Depending on the ultimate cost of this remediation, the amount for which the Company is liable could differ from the Company’s current recorded liability. | ||
In addition, under the terms of a settlement agreement reached on November 12, 2004, the United States Department of Justice and the Company agreed to fulfill the terms of a Cooperative Agreement reached in 1985 under which the United States will take title to and responsibility for radioactive waste removal at the Maywood site, including past and future remediation costs incurred by the United States. As such, the Company recorded no liability related to this settlement agreement. | ||
D’Imperio Property Site | ||
During the mid-1970’s, Jerome Lightman and the Lightman Drum Company disposed of hazardous substances at several sites in New Jersey. The Company was named as a potentially responsible party (PRP) in the case United States v. Lightman (1:92-cv-4710 D.N.J.), which involved the D’Imperio Property Site located in New Jersey. In 2012, the PRPs approved certain changes to remediation cost estimates which were considered in the Company’s determination of its range of estimated possible losses and liability balance. The changes in range of possible losses and liability balance were immaterial. | ||
Remediation work is continuing at this site. Based on current information, the Company believes that its recorded liability for claims associated with the D’Imperio site is adequate. However, actual costs could differ from current estimates. | ||
Wilmington Site | ||
The Company is currently contractually obligated to contribute to the response costs associated with the Company’s formerly-owned site at 51 Eames Street, Wilmington, Massachusetts. Remediation at this site is being managed by its current owner to whom the Company sold the property in 1980. Under the agreement, once total site remediation costs exceed certain levels, the Company is obligated to contribute up to five percent of future response costs associated with this site with no limitation on the ultimate amount of contributions. To date, the Company has paid the current owner $2.3 million for the Company’s portion of environmental response costs through the second quarter of 2014 (the current owner of the site bills the Company one calendar quarter in arrears). The Company has recorded a liability for its portion of the estimated remediation costs for the site. Depending on the ultimate cost of the remediation at this site, the amount for which the Company is liable could differ from the current estimates. | ||
The Company and other prior owners also entered into an agreement in April 2004 waiving certain statute of limitations defenses for claims which may be filed by the Town of Wilmington, Massachusetts, in connection with this site. While the Company has denied any liability for any such claims, the Company agreed to this waiver while the parties continue to discuss the resolution of any potential claim which may be filed. | ||
The Company believes that based on current information it has adequate reserves for the claims related to this site. However, depending on the ultimate cost of the remediation at this site, the amount for which the Company is liable could differ from the current estimates. | ||
Unclaimed Property Examination | ||
The Company is undergoing an unclaimed property examination by the state of Deleware (the Company’s state of incorporation) and seven other states for the period covering 1981 through 2010. The types of unclaimed property under examination include certain un-cashed payroll and accounts payable checks and certain accounts receivable credits. Generally, unclaimed property must be reported and remitted to the state of the rightful owner. In cases where the rightful owner cannot be identified, the property must be reported and remitted to the unclaimed property holder’s state of incorporation. The audit could result in additional liabilities being assessed against the Company. However, because the examination is in its early stages, the Company’s liability, if any, is currently not determinable. |
Postretirement_Benefit_Plans
Postretirement Benefit Plans | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Postretirement Benefit Plans | ' | ||||||||||||||||
8 | POSTRETIREMENT BENEFIT PLANS | ||||||||||||||||
Defined Benefit Pension Plans | |||||||||||||||||
The Company sponsors various funded qualified and unfunded non-qualified defined benefit pension plans, the most significant of which cover employees in the U.S. and U.K. locations. The U.S. and U.K. defined benefit pension plans are frozen and service benefits are no longer being accrued. | |||||||||||||||||
Components of Net Periodic Benefit Cost | |||||||||||||||||
UNITED STATES | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30 | September 30 | ||||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Interest cost | $ | 1,756 | $ | 1,604 | $ | 5,202 | $ | 4,818 | |||||||||
Expected return on plan assets | (2,386 | ) | (2,217 | ) | (7,142 | ) | (6,621 | ) | |||||||||
Amortization of net loss | 692 | 1,220 | 2,015 | 3,832 | |||||||||||||
Net periodic benefit cost | $ | 62 | $ | 607 | $ | 75 | $ | 2,029 | |||||||||
UNITED KINGDOM | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30 | September 30 | ||||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Interest cost | $ | 245 | $ | 223 | $ | 735 | $ | 667 | |||||||||
Expected return on plan assets | (330 | ) | (234 | ) | (991 | ) | (700 | ) | |||||||||
Amortization of net loss | — | 71 | — | 213 | |||||||||||||
Net periodic benefit cost | $ | (85 | ) | $ | 60 | $ | (256 | ) | $ | 180 | |||||||
Employer Contributions | |||||||||||||||||
U.S. Plans | |||||||||||||||||
The Company expects to contribute approximately $1,420,000 to its funded U.S. qualified defined benefit pension plans in 2014 and to pay $185,000 related to its unfunded unqualified plans. As of September 30, 2014, $1,229,000 had been contributed to the qualified plans and $178,000 had been paid related to the non-qualified plans. | |||||||||||||||||
U.K. Plan | |||||||||||||||||
The Company’s United Kingdom subsidiary expects to contribute approximately $1,005,000 to its defined benefit pension plan in 2014. As of September 30, 2014, $780,000 had been contributed to the plan. | |||||||||||||||||
Defined Contribution Plans | |||||||||||||||||
The Company sponsors retirement savings defined contribution plans that cover U.S. and U.K. employees. The Company also sponsors a qualified profit sharing plan for its U.S. employees. The retirement savings and profit sharing defined contribution plans include a qualified plan and a non-qualified supplemental executive plan. | |||||||||||||||||
Defined contribution plan expenses for the Company’s retirement savings and profit sharing plans were as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30 | September 30 | ||||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Retirement savings plans | $ | 1,139 | $ | 1,149 | $ | 3,448 | $ | 3,316 | |||||||||
Profit sharing plan | 840 | 1,293 | 2,831 | 3,903 | |||||||||||||
Total defined contribution expense | $ | 1,979 | $ | 2,442 | $ | 6,279 | $ | 7,219 | |||||||||
The Company funds the obligations of its non-qualified supplemental executive defined contribution plans (supplemental plans) through a rabbi trust. The trust comprises various mutual fund investments selected by the participants of the supplemental plans. In accordance with the accounting guidance for rabbi trust arrangements, the assets of the trust and the obligations of the supplemental plans are reported on the Company’s consolidated balance sheets. The Company elected the fair value option for the mutual fund investment assets so that offsetting changes in the mutual fund values and defined contribution plan obligations would be recorded in earnings in the same period. Therefore, the mutual funds are reported at fair value with any subsequent changes in fair value recorded in the statements of income. The liabilities related to the supplemental plans increase (i.e., supplemental plan expense is recognized) when the value of the trust assets appreciates and decrease when the value of the trust assets declines (i.e., supplemental plan income is recognized). At September 30, 2014, the balance of the trust assets was $1,778,000, which equaled the balance of the supplemental plan liabilities (see the long-term investments section in Note 3 for further information regarding the Company’s mutual fund assets). |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings Per Share | ' | ||||||||||||||||
9 | EARNINGS PER SHARE | ||||||||||||||||
Below is the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2014 and 2013. | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30 | September 30 | ||||||||||||||||
(In thousands, except per share amounts) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Computation of Basic Earnings per Share | |||||||||||||||||
Net income attributable to Stepan Company | $ | 13,491 | $ | 20,402 | $ | 50,862 | $ | 62,178 | |||||||||
Deduct dividends on preferred stock | — | — | — | 43 | |||||||||||||
Income applicable to common stock | $ | 13,491 | $ | 20,402 | $ | 50,862 | $ | 62,135 | |||||||||
Weighted-average number of common shares outstanding | 22,726 | 22,700 | 22,754 | 22,576 | |||||||||||||
Basic earnings per share | $ | 0.59 | $ | 0.9 | $ | 2.24 | $ | 2.75 | |||||||||
Computation of Diluted Earnings per Share | |||||||||||||||||
Net income attributable to Stepan Company | $ | 13,491 | $ | 20,402 | $ | 50,862 | $ | 62,178 | |||||||||
Weighted-average number of shares outstanding | 22,726 | 22,700 | 22,754 | 22,576 | |||||||||||||
Add weighted-average net shares issuable from assumed exercise of options (under treasury stock method) (1) | 138 | 188 | 159 | 224 | |||||||||||||
Add weighted-average net shares related to unvested stock awards (under treasury stock method) | 11 | 8 | 10 | 7 | |||||||||||||
Add weighted-average shares issuable from assumed conversion of convertible preferred stock | — | 40 | — | 107 | |||||||||||||
Weighted-average shares applicable to diluted earnings | 22,875 | 22,936 | 22,923 | 22,914 | |||||||||||||
Diluted earnings per share | $ | 0.59 | $ | 0.89 | $ | 2.22 | $ | 2.71 | |||||||||
(1) | Options to purchase 96,999 and 82,673 shares of common stock were not included in the computations of diluted earnings per share for the three and nine months ended September 30, 2014, respectively. Options to purchase 52,068 and 50,540 shares of common stock were not included in the computations of diluted earnings per share for the three and nine months ended September 30, 2013. The options’ exercise prices were greater than the average market price for the common stock and their effect would have been antidilutive. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||||
10 | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||
Below are the changes in the Company’s accumulated other comprehensive income (loss) (AOCI) balances by component (net of income taxes) for the three and nine month periods ended September 30, 2014 and 2013: | |||||||||||||||||||
(In thousands) | Foreign | Defined | Cash Flow | Total | |||||||||||||||
Currency | Benefit | Hedge | |||||||||||||||||
Translation | Pension Plan | Adjustments | |||||||||||||||||
Adjustments | Adjustments | ||||||||||||||||||
Balance at June 30, 2013 | $ | (15,473 | ) | $ | (33,770 | ) | $ | 113 | $ | (49,130 | ) | ||||||||
Other comprehensive income before reclassifications | 5,747 | — | — | 5,747 | |||||||||||||||
Amounts reclassified from AOCI | — | 810 | 3 | 813 | |||||||||||||||
Net current-period other comprehensive income | 5,747 | 810 | 3 | 6,560 | |||||||||||||||
Balance at September 30, 2013 | $ | (9,726 | ) | $ | (32,960 | ) | $ | 116 | $ | (42,570 | ) | ||||||||
Balance at June 30, 2014 | $ | (7,112 | ) | $ | (17,852 | ) | $ | 119 | $ | (24,845 | ) | ||||||||
Other comprehensive income before reclassifications | (19,546 | ) | — | — | (19,546 | ) | |||||||||||||
Amounts reclassified from AOCI | — | 429 | 2 | 431 | |||||||||||||||
Net current-period other comprehensive income | (19,546 | ) | 429 | 2 | (19,115 | ) | |||||||||||||
Balance at September 30, 3014 | $ | (26,658 | ) | $ | (17,423 | ) | $ | 121 | $ | (43,960 | ) | ||||||||
Balance at December 31, 2012 | $ | (2,886 | ) | $ | (35,498 | ) | $ | 134 | $ | (38,250 | ) | ||||||||
Other comprehensive income before reclassifications | (6,840 | ) | — | (29 | ) | (6,869 | ) | ||||||||||||
Amounts reclassified from AOCI | — | 2,538 | 11 | 2,549 | |||||||||||||||
Net current-period other comprehensive income | (6,840 | ) | 2,538 | (18 | ) | (4,320 | ) | ||||||||||||
Balance at September 30, 2013 | $ | (9,726 | ) | $ | (32,960 | ) | $ | 116 | $ | (42,570 | ) | ||||||||
Balance at December 31, 2013 | $ | (10,971 | ) | $ | (18,672 | ) | $ | 115 | $ | (29,528 | ) | ||||||||
Other comprehensive income before reclassifications | (15,687 | ) | — | — | (15,687 | ) | |||||||||||||
Amounts reclassified from AOCI | — | 1,249 | 6 | 1,255 | |||||||||||||||
Net current-period other comprehensive income | (15,687 | ) | 1,249 | 6 | (14,432 | ) | |||||||||||||
Balance at September 30, 2014 | $ | (26,658 | ) | $ | (17,423 | ) | $ | 121 | $ | (43,960 | ) | ||||||||
Information regarding reclassifications out of AOCI for the three and nine month periods ended September 30, 2014 and 2013, is displayed below: | |||||||||||||||||||
Amount Reclassified from AOCI (a) | |||||||||||||||||||
(In thousands) | Three Months Ended | Nine Months Ended | Affected Line Item in | ||||||||||||||||
September 30 | September 30 | Consolidated | |||||||||||||||||
Statements of Income | |||||||||||||||||||
AOCI Components | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Amortization of defined benefit pension actuarial losses | $ | (692 | ) | $ | (1,291 | ) | $ | (2,015 | ) | $ | (4,045 | )(b) | |||||||
263 | 481 | 766 | 1,507 | Tax benefit | |||||||||||||||
$ | (429 | ) | $ | (810 | ) | $ | (1,249 | ) | $ | (2,538 | ) | Net of tax | |||||||
Gains and losses on cash flow hedges: | |||||||||||||||||||
Interest rate contracts | $ | (6 | ) | $ | (9 | ) | $ | (20 | ) | $ | (28 | ) | Interest, net | ||||||
Foreign exchange contracts | 2 | 2 | 7 | 7 | Cost of sales | ||||||||||||||
(4 | ) | (7 | ) | (13 | ) | (21 | ) | Total before tax | |||||||||||
2 | 4 | 7 | 10 | Tax benefit | |||||||||||||||
$ | (2 | ) | $ | (3 | ) | $ | (6 | ) | $ | (11 | ) | Net of tax | |||||||
Total reclassifications for the period | $ | (431 | ) | $ | (813 | ) | $ | (1,255 | ) | $ | (2,549 | ) | Net of tax | ||||||
(a) | Amounts in parentheses denote expense to statement of income. | ||||||||||||||||||
(b) | This component of accumulated other comprehensive income is included in the computation of net periodic benefit cost (see Note 8 for additional details). |
Segment_Reporting
Segment Reporting | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Reporting | ' | ||||||||||||||||
11 | SEGMENT REPORTING | ||||||||||||||||
The Company has three reportable segments: surfactants, polymers and specialty products. Net sales by segment for the three and nine months ended September 30, 2014 and 2013, were as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30 | September 30 | ||||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Segment Net Sales | |||||||||||||||||
Surfactants | $ | 318,486 | $ | 318,357 | $ | 987,957 | $ | 989,417 | |||||||||
Polymers | 152,955 | 137,649 | 420,332 | 354,972 | |||||||||||||
Specialty Products | 19,988 | 19,460 | 64,693 | 62,068 | |||||||||||||
Total | $ | 491,429 | $ | 475,466 | $ | 1,472,982 | $ | 1,406,457 | |||||||||
Segment operating income and reconciliations of segment operating income to consolidated income before income taxes for the three and nine months ended September 30, 2014 and 2013, are summarized below: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
30-Sep | 30-Sep | ||||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Segment Operating Income | |||||||||||||||||
Surfactants | $ | 11,115 | $ | 24,094 | $ | 48,692 | $ | 79,712 | |||||||||
Polymers | 18,268 | 19,076 | 47,538 | 43,364 | |||||||||||||
Specialty Products | 3,029 | 1,311 | 10,600 | 8,340 | |||||||||||||
Segment operating income | 32,412 | 44,481 | 106,830 | 131,416 | |||||||||||||
Unallocated corporate expenses (1) | (10,159 | ) | (13,396 | ) | (25,140 | ) | (36,168 | ) | |||||||||
Consolidated operating income | 22,253 | 31,085 | 81,690 | 95,248 | |||||||||||||
Interest expense, net | (2,846 | ) | (2,987 | ) | (8,824 | ) | (7,495 | ) | |||||||||
Loss from equity in joint ventures | (1,148 | ) | (1,325 | ) | (3,842 | ) | (4,061 | ) | |||||||||
Other, net | (31 | ) | 1,074 | 499 | 1,628 | ||||||||||||
Consolidated income before income taxes | $ | 18,228 | $ | 27,847 | $ | 69,523 | $ | 85,320 | |||||||||
(1) | Unallocated corporate expenses primarily comprise corporate administrative expenses (e.g., corporate finance, legal, human resources, information systems, deferred compensation and environmental remediation) that are not included in segment operating income and not used to evaluate segment performance. |
Debt
Debt | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||
Debt | ' | ||||||||||||
12 | DEBT | ||||||||||||
At September 30, 2014, and December 31, 2013, debt comprised the following: | |||||||||||||
(In thousands) | Maturity | September 30, | December 31, | ||||||||||
Dates | 2014 | 2013 | |||||||||||
Unsecured private placement notes | |||||||||||||
3.86% | 2019-2025 | $ | 100,000 | $ | 100,000 | ||||||||
4.86% | 2017-2023 | 65,000 | 65,000 | ||||||||||
5.88% | 2016-2022 | 40,000 | 40,000 | ||||||||||
5.69% | 2014-2018 | 28,571 | 28,571 | ||||||||||
6.86% | 2015 | 4,284 | 8,570 | ||||||||||
Debt of foreign subsidiaries | |||||||||||||
Secured bank term loans, foreign currency | 2014-2016 | 3,474 | 5,843 | ||||||||||
Unsecured bank debt, U.S. dollars | 2014 | 413 | 998 | ||||||||||
Other loans, foreign currency | 2014 | 23,420 | 21,641 | ||||||||||
Total debt | $ | 265,162 | $ | 270,623 | |||||||||
Less current maturities | 36,356 | 35,377 | |||||||||||
Long-term debt | $ | 228,806 | $ | 235,246 | |||||||||
On July 10, 2014, the Company amended its committed $125,000,000 multi-currency revolving credit agreement to extend the maturity date of the credit agreement from September 20, 2017 to July 10, 2019. The amended agreement has terms and conditions that are substantially equivalent to those of the pre-amended agreement and the Company’s other U.S. loan agreements. The Company maintains standby letters of credit under its workers’ compensation insurance agreements and for other purposes, as needed from time to time, which are issued under the revolving credit agreement. As of September 30, 2014, the Company had outstanding letters of credit totaling $2,977,000 and no outstanding debt under this agreement. There was $122,023,000 available under the revolving credit agreement as of September 30, 2014. | |||||||||||||
The various loan agreements contain provisions which, among others, require maintenance of certain financial ratios and place limitations on additional debt, investments and payment of dividends. Based on the loan agreement provisions that place limitations on dividend payments, unrestricted retained earnings (i.e., retained earnings available for dividend distribution) were $92,459,000 and $148,467,000 at September 30, 2014 and December 31, 2013, respectively. |
Other_Net
Other, Net | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Other Income and Expenses [Abstract] | ' | ||||||||||||||||
Other, Net | ' | ||||||||||||||||
13 | OTHER, NET | ||||||||||||||||
Other, net in the consolidated statements of income included the following: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30 | September 30 | ||||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Foreign exchange (loss) | $ | (233 | ) | $ | (58 | ) | $ | (531 | ) | $ | (668 | ) | |||||
Investment income | 14 | 17 | 287 | 110 | |||||||||||||
Realized and unrealized gain | 188 | 1,115 | 743 | 2,186 | |||||||||||||
on investments | |||||||||||||||||
Other, net | $ | (31 | ) | $ | 1,074 | $ | 499 | $ | 1,628 | ||||||||
Allowance_for_Doubtful_Account
Allowance for Doubtful Accounts | 9 Months Ended | |
Sep. 30, 2014 | ||
Text Block [Abstract] | ' | |
Allowance for Doubtful Accounts | ' | |
14 | ALLOWANCE FOR DOUBTFUL ACCOUNTS | |
On September 30, 2014, a major customer of the Polymer reportable segment filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code. On the basis of the information available as of the filing date of these financial statements, the Company increased its allowance for doubtful accounts by $3,425,000, which was the full receivable balance due from the affected customer at September 30, 2014. The charge for the increase in the allowance for doubtful accounts was included in selling expenses for the three- and nine-month periods ended September 30, 2014. This amount is subject to change based on additional information that arises from the bankruptcy proceedings, in which the Company intends to pursue all rights available to it. The Company has required adequate assurance from the debtor for all post-bankruptcy product sales. |
Business_Restructuring
Business Restructuring | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Restructuring and Related Activities [Abstract] | ' | ||||
Business Restructuring | ' | ||||
15 | BUSINESS RESTRUCTURING | ||||
In the fourth quarter of 2013, the Company recorded a $1,040,000 restructuring charge for estimated severance expense related to an approved plan to reduce future costs and increase operating efficiencies by consolidating a portion of its North American Surfactants manufacturing operations (part of the Surfactants reportable segment). In the third quarter of 2014, the Company shut down certain production areas at its Canadian manufacturing site. Production in those areas was moved to other U.S. plants. This consolidation resulted in the elimination of 16 North American positions. Most of the remaining severance payments are expected to be made in the fourth quarter of 2014 and the first quarter of 2015. Other restructuring costs for this plan were not material. Following is a reconciliation of the beginning and ending balances of the restructuring liability: | |||||
(In thousands) | Severance | ||||
Expense | |||||
Restructuring liability at December 31, 2013 | $ | 1,040 | |||
Amounts paid | (288 | ) | |||
Restructuring liability at March 31, 2014 | $ | 752 | |||
Amounts paid | — | ||||
Restructuring liability at June 30, 2014 | $ | 752 | |||
Amounts paid | (46 | ) | |||
Foreign currency translation | (38 | ) | |||
Restructuring liability at September 30, 2014 | $ | 668 | |||
In connection with the planned business restructuring, the Company reduced the useful lives of the manufacturing assets in the affected areas of the Canadian plant. The change in useful lives resulted in accelerated depreciation expenses of $296,000 in 2013 and $1,825,000 in 2014. The current year accelerated depreciation expense was recorded in the six-month period ended June 30, 2014. The depreciation expense was included in the cost of sales line of the consolidated statement of income. |
Acquisition
Acquisition | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Business Combinations [Abstract] | ' | ||||||||
Acquisition | ' | ||||||||
16 | ACQUISITION | ||||||||
2014 Acquisition Agreement | |||||||||
On July 15, 2014, the Company announced that it reached an agreement with Procter & Gamble do Brasil S.A. to acquire (through the Company’s Brazilian subsidiary) a sulfonation production facility in Bahia, Brazil, subject to customary closing conditions. The facility is located in northeastern Brazil and has 30,000 metric tons of surfactants capacity. The acquisition will become a part of the Company’s Surfactants segment. This is synergistic with the Company’s existing Vespasiano, Brazil, plant, and provides an opportunity to serve growing northeastern Brazil. The transaction is projected to close in the first quarter of 2015. The acquisition is expected to have a minimal impact on the Company’s 2014 financial results. | |||||||||
2013 Acquisition | |||||||||
On June 1, 2013, the Company acquired the North American polyester resins business of Bayer MaterialScience LLC (BMS). Prior to the acquisition, BMS was a North American producer of powder polyester resins for metal coating applications and liquid polyester resins for coatings, adhesives, sealants and elastomers (CASE) applications. The purchase included a 21,000-ton production facility in Columbus, Georgia, and a modern research and development laboratory for customer technical support and new product development. Infrastructure is in place to allow for future expansion. The acquisition has diversified the Company’s polyol product offering and is expected to accelerate the Company’s growth in CASE and PUSH (polyurethane systems house) applications. As of the acquisition date, the new business and acquired net assets became a part of the North American operations reporting unit included in the Company’s Polymers reportable segment. | |||||||||
The total acquisition purchase price was $68,212,000 cash, of which $61,067,000 was paid at closing and $7,145,000 primarily for inventory was paid over a three-month period (June 2013 through August 2013) pursuant to a transition services agreement with BMS. The acquisition was originally funded through the Company’s committed revolving credit agreement. Subsequent to closing on the acquisition, the Company completed a $100,000,000 private placement loan, which was used in part to finance the acquisition (see Note 12). | |||||||||
The acquisition was accounted for as a business combination and, accordingly, the assets acquired and liabilities assumed as part of the acquisition were measured and recorded at their estimated fair values. The following table summarizes the assets acquired and liabilities assumed: | |||||||||
(In thousands) | June 1, 2013 | ||||||||
Assets: | |||||||||
Inventory | $ | 9,002 | |||||||
Property, plant and equipment | 37,000 | ||||||||
Identifiable intangible assets | 17,800 | ||||||||
Goodwill | 4,642 | ||||||||
Total assets acquired | $ | 68,444 | |||||||
Liabilities: | |||||||||
Accrued expenses | 232 | ||||||||
Net assets acquired | $ | 68,212 | |||||||
The acquired goodwill, which was assigned entirely to the Company’s North American operations reporting unit included in the Company’s Polymers reportable segment, is deductible for tax purposes. The goodwill reflects the potential marketing, manufacturing and raw material sourcing synergies of the new business with the Company’s existing Polymer business. Identifiable intangible assets included a technology and manufacturing know-how license agreement ($7,900,000), a trademark/trade name ($3,800,000) and customer relationships ($6,100,000). The amortization periods for these intangibles at the time of acquisition were 8, 11 and 12 years, respectively. The purchase price allocation is final, and no purchase price allocation adjustments were made to the amounts originally recorded at the acquisition date. | |||||||||
The following is third quarter quarter and year-to-date 2013 pro forma financial information prepared under the assumption that the acquisition of the BMS North American polyester resins business occurred on January 1, 2012. | |||||||||
Three Months Ended | Nine Months Ended | ||||||||
September 30 | September 30 | ||||||||
(In thousands, except per share amounts) | 2013 | 2013 | |||||||
Net Sales | $ | 475,466 | $ | 1,433,278 | |||||
Net Income Attributable to Stepan Company | $ | 20,603 | $ | 63,064 | |||||
Net Income Per Common Share Attributable to Stepan Company: | |||||||||
Basic | $ | 0.91 | $ | 2.79 | |||||
Diluted | $ | 0.9 | $ | 2.75 | |||||
The supplemental pro forma information is presented for illustrative purposes only and may not be indicative of the consolidated results that would have actually been achieved by the Company. Furthermore, future results may vary significantly from the results reflected in the pro forma information. The pro forma results include adjustments primarily related to amortization of acquired intangible assets, depreciation of the fair value adjustment of acquisition-date plant assets, interest on borrowings and tax expense. |
Preferred_Stock_Redemption
Preferred Stock Redemption | 9 Months Ended | |
Sep. 30, 2014 | ||
Equity [Abstract] | ' | |
Preferred Stock Redemption | ' | |
17 | PREFERRED STOCK REDEMPTION | |
On June 12, 2013, the Company announced that on August 9, 2013 (redemption date), it would redeem any remaining outstanding shares of its 5 1⁄2 percent convertible preferred stock without par value (preferred stock). At the time of the redemption announcement, there were 61,735 shares of preferred stock outstanding. Prior to the redemption date, preferred shareholders converted 60,900 shares of preferred stock into 139,029 shares of Company common stock. In accordance with the Certificate of Designation, Preferences and Rights of the 5 1⁄2Percent Convertible Preferred Stock, the Company redeemed 835 unconverted shares of Company preferred stock for an aggregate redemption price of $25.26354 per share ($25.00 per share plus accrued and unpaid dividends of $0.26354 per share). As of the redemption date, the Company has no issued and outstanding shares of preferred stock. |
Insurance_Recovery
Insurance Recovery | 9 Months Ended | |
Sep. 30, 2014 | ||
Extraordinary and Unusual Items [Abstract] | ' | |
Insurance Recovery | ' | |
18 | INSURANCE RECOVERY | |
In August 2013, the Company received a $3,730,000 insurance recovery for business interruption losses resulting from a May 2011 fire that damaged polyol manufacturing equipment at the Company’s plant site in Wesseling, Germany. The insurance recovery was recorded as a reduction of cost of sales in the condensed consolidated statements of income for the three and nine months ended September 30, 2013. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 9 Months Ended | |
Sep. 30, 2014 | ||
Accounting Changes and Error Corrections [Abstract] | ' | |
Recent Accounting Pronouncements | ' | |
19 | RECENT ACCOUNTING PRONOUNCEMENTS | |
In February 2013, the FASB issued Accounting Standards Update (ASU) No. 2013-04, Liabilities (Topic 405), Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date. This update requires an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date, as the sum of a) the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and b) any additional amount the reporting entity expects to pay on behalf of its co-obligors. The update also requires an entity to disclose the nature and amount of the obligation as well as other information about those obligations. The requirements of ASU No. 2013-04 are effective on a retrospective basis for interim and annual periods beginning after December 15, 2013. Because the Company has no applicable obligations resulting from joint and several liability arrangements, adoption of ASU No. 2013-04 had no impact on the Company’s financial position, results of operations or cash flows. | ||
In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740), Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The update clarifies that unrecognized tax benefits related to a net operating loss carryforward, or similar tax loss, or tax credit carryforward, should generally be presented in the financial statements as a reduction to a deferred tax asset. The requirements of ASU No. 2013-11 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The update allows for early adoption. The Company currently has no unrecognized tax benefits in jurisdictions where a net operating loss carryforward, or similar tax loss, or tax credit carryforward exists. The adoption of the new guidance had no impact on the Company’s financial position, results of operations or cash flows. | ||
In April 2014, the FASB issued ASU No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The update amends the definition of a discontinued operation, changes the criteria for reporting discontinued operations and requires expanded disclosures for discontinued operations and new disclosures about disposal transactions that do not meet the discontinued operations criteria. Under the new guidance, a discontinued operation is defined as a disposal of a component or group of components that is disposed of or is classified as held for sale and represents a strategic shift that has or will have a major effect on an entity’s operations and financial results. The requirements of ASU No. 2014-08 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2014, with early adoption permitted. Upon adoption of the ASU, the Company will assess discontinued operations using the new criteria and will provide the necessary disclosures for discontinued operations and other disposal activities. This ASU is not expected to have an effect on the Company’s financial position, results of operations or cash flows. | ||
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The standard, which is the result of a joint project by the FASB and the International Accounting Standards Board, outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. In addition, the ASU requires expanded disclosures about revenue recognition that enable the users of the financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. ASU No. 2014-09 supersedes most of the previous revenue recognition guidance. For public entities, the new guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. An entity may use either a full retrospective or a modified retrospective approach to adopt the requirements of the new standard. The Company is in the process of determining the effects, if any, that adoption of ASU No. 2014-09 will have on Company financial position, results of operations and cash flows. |
Recent_Accounting_Pronouncemen1
Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Changes and Error Corrections [Abstract] | ' |
Recent Accounting Pronouncements | ' |
In February 2013, the FASB issued Accounting Standards Update (ASU) No. 2013-04, Liabilities (Topic 405), Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date. This update requires an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date, as the sum of a) the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and b) any additional amount the reporting entity expects to pay on behalf of its co-obligors. The update also requires an entity to disclose the nature and amount of the obligation as well as other information about those obligations. The requirements of ASU No. 2013-04 are effective on a retrospective basis for interim and annual periods beginning after December 15, 2013. Because the Company has no applicable obligations resulting from joint and several liability arrangements, adoption of ASU No. 2013-04 had no impact on the Company’s financial position, results of operations or cash flows. | |
In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740), Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The update clarifies that unrecognized tax benefits related to a net operating loss carryforward, or similar tax loss, or tax credit carryforward, should generally be presented in the financial statements as a reduction to a deferred tax asset. The requirements of ASU No. 2013-11 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The update allows for early adoption. The Company currently has no unrecognized tax benefits in jurisdictions where a net operating loss carryforward, or similar tax loss, or tax credit carryforward exists. The adoption of the new guidance had no impact on the Company’s financial position, results of operations or cash flows. | |
In April 2014, the FASB issued ASU No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The update amends the definition of a discontinued operation, changes the criteria for reporting discontinued operations and requires expanded disclosures for discontinued operations and new disclosures about disposal transactions that do not meet the discontinued operations criteria. Under the new guidance, a discontinued operation is defined as a disposal of a component or group of components that is disposed of or is classified as held for sale and represents a strategic shift that has or will have a major effect on an entity’s operations and financial results. The requirements of ASU No. 2014-08 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2014, with early adoption permitted. Upon adoption of the ASU, the Company will assess discontinued operations using the new criteria and will provide the necessary disclosures for discontinued operations and other disposal activities. This ASU is not expected to have an effect on the Company’s financial position, results of operations or cash flows. | |
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The standard, which is the result of a joint project by the FASB and the International Accounting Standards Board, outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. In addition, the ASU requires expanded disclosures about revenue recognition that enable the users of the financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. ASU No. 2014-09 supersedes most of the previous revenue recognition guidance. For public entities, the new guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. An entity may use either a full retrospective or a modified retrospective approach to adopt the requirements of the new standard. The Company is in the process of determining the effects, if any, that adoption of ASU No. 2014-09 will have on Company financial position, results of operations and cash flows. |
Reconciliations_of_Equity_Tabl
Reconciliations of Equity (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Reconciliations of Total Equity | ' | ||||||||||||
Below are reconciliations of total equity, Company equity and equity attributable to the noncontrolling interests for the nine months ended September 30, 2014 and 2013: | |||||||||||||
(In thousands) | Total Equity | Stepan | Noncontrolling | ||||||||||
Company | Interests’ | ||||||||||||
Equity | Equity (3) | ||||||||||||
Balance at January 1, 2014 | $ | 553,741 | $ | 552,286 | $ | 1,455 | |||||||
Net income (loss) | 50,856 | 50,862 | (6 | ) | |||||||||
Dividends | (11,381 | ) | (11,381 | ) | — | ||||||||
Common stock purchases (1) | (6,723 | ) | (6,723 | ) | — | ||||||||
Stock option exercises | 1,563 | 1,563 | — | ||||||||||
Defined benefit pension adjustments, net of tax | 1,249 | 1,249 | — | ||||||||||
Translation adjustments | (15,709 | ) | (15,687 | ) | (22 | ) | |||||||
Derivative instrument activity, net of tax | 6 | 6 | — | ||||||||||
Other (2) | 2,241 | 2,241 | — | ||||||||||
Balance at September 30, 2014 | $ | 575,843 | $ | 574,416 | $ | 1,427 | |||||||
(In thousands) | Total Equity | Stepan | Noncontrolling | ||||||||||
Company | Interests’ | ||||||||||||
Equity | Equity (3) | ||||||||||||
Balance at January 1, 2013 | $ | 480,880 | $ | 478,985 | $ | 1,895 | |||||||
Net income (loss) | 61,800 | 62,178 | (378 | ) | |||||||||
Dividends | (10,678 | ) | (10,678 | ) | — | ||||||||
Common stock purchases (1) | (3,334 | ) | (3,334 | ) | — | ||||||||
Redemption of preferred stock | (21 | ) | (21 | ) | — | ||||||||
Stock option exercises | 3,715 | 3,715 | — | ||||||||||
Defined benefit pension adjustments, net of tax | 2,538 | 2,538 | — | ||||||||||
Translation adjustments | (6,806 | ) | (6,840 | ) | 34 | ||||||||
Derivative instrument activity, net of tax | (18 | ) | (18 | ) | — | ||||||||
Other (2) | 4,750 | 4,750 | — | ||||||||||
Balance at September 30, 2013 | $ | 532,826 | $ | 531,275 | $ | 1,551 | |||||||
(1) | Includes the value of Company shares purchased in the open market, the value of Company common shares tendered by employees to settle minimum statutory withholding taxes related to the receipt of performance awards and deferred compensation distributions. | ||||||||||||
(2) | Primarily comprised of activity related to stock-based compensation, deferred compensation and excess tax benefits. | ||||||||||||
(3) | Consists entirely of noncontrolling interest in the Company’s China joint venture. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value of Debt and Related Carrying Values | ' | ||||||||||||||||
At September 30, 2014, and December 31, 2013, the fair value of debt and the related carrying values, including current maturities, were as follows: | |||||||||||||||||
(In thousands) | September 30, 2014 | December 31, 2013 | |||||||||||||||
Fair value | $ | 276,956 | $ | 276,069 | |||||||||||||
Carrying value | 265,162 | 270,623 | |||||||||||||||
Financial Assets and Liabilities Measured on a Recurring Basis at Fair Value | ' | ||||||||||||||||
The following tables present financial assets and liabilities measured on a recurring basis at fair value as of September 30, 2014, and December 31, 2013, and the level within the fair value hierarchy in which the fair value measurement falls: | |||||||||||||||||
(In thousands) | September | Level 1 | Level 2 | Level 3 | |||||||||||||
2014 | |||||||||||||||||
Mutual fund assets | $ | 19,529 | $ | 19,529 | $ | — | $ | — | |||||||||
Derivative assets: | |||||||||||||||||
Foreign currency contracts | 41 | — | 41 | — | |||||||||||||
Total assets at fair value | $ | 19,570 | $ | 19,529 | $ | 41 | $ | — | |||||||||
Derivative liabilities: | |||||||||||||||||
Foreign currency contracts | $ | 376 | $ | — | $ | 376 | $ | — | |||||||||
(In thousands) | December | Level 1 | Level 2 | Level 3 | |||||||||||||
2013 | |||||||||||||||||
Mutual fund assets | $ | 18,305 | $ | 18,305 | $ | — | $ | — | |||||||||
Derivative assets: | |||||||||||||||||
Foreign currency contracts | 74 | — | 74 | — | |||||||||||||
Total assets at fair value | $ | 18,379 | $ | 18,305 | $ | 74 | $ | — | |||||||||
Derivative liabilities: | |||||||||||||||||
Foreign currency contracts | $ | 165 | $ | — | $ | 165 | $ | — | |||||||||
Interest rate contracts | 20 | — | 20 | — | |||||||||||||
Total liabilities at fair value | $ | 185 | $ | — | $ | 185 | $ | — | |||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | ||||||||||||||
Sep. 30, 2014 | |||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||
Compensation (Income) Expense Recognized for All Stock Options, Stock Awards and SARs | ' | ||||||||||||||
Compensation (income) expense recognized for all stock options, stock awards and SARs in the consolidated statements of income was as follows: | |||||||||||||||
(In thousands) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30 | September 30 | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
$ | (164 | ) | $ | 996 | $ | 606 | $ | 1,420 | |||||||
Unrecognized Compensation Costs for Stock Options, Stock Awards and SARs | ' | ||||||||||||||
Unrecognized compensation costs for stock options, stock awards and SARs was as follows: | |||||||||||||||
(In thousands) | September 30, | December 31, | |||||||||||||
2014 | 2013 | ||||||||||||||
Stock options | $ | 1,068 | $ | 756 | |||||||||||
Stock awards | 2,316 | 2,086 | |||||||||||||
SARs | 1,174 | 1,365 | |||||||||||||
Total | $ | 4,558 | $ | 4,207 | |||||||||||
Share Based Payment Awards Granted in Period | ' | ||||||||||||||
The increase in unrecognized compensation costs for stock options, SARs and stock awards reflected the 2014 grants of | |||||||||||||||
Shares | |||||||||||||||
Stock options | 53,175 | ||||||||||||||
Stock awards | 45,586 | ||||||||||||||
SARs | 116,843 |
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Composition of Inventories | ' | ||||||||
The composition of inventories was as follows: | |||||||||
(In thousands) | September 30, | December 31, | |||||||
2014 | 2013 | ||||||||
Finished goods | $ | 136,703 | $ | 123,212 | |||||
Raw materials | 60,126 | 49,156 | |||||||
Total inventories | $ | 196,829 | $ | 172,368 | |||||
Postretirement_Benefit_Plans_T
Postretirement Benefit Plans (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Components of Net Periodic Benefit Cost | ' | ||||||||||||||||
Components of Net Periodic Benefit Cost | |||||||||||||||||
UNITED STATES | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30 | September 30 | ||||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Interest cost | $ | 1,756 | $ | 1,604 | $ | 5,202 | $ | 4,818 | |||||||||
Expected return on plan assets | (2,386 | ) | (2,217 | ) | (7,142 | ) | (6,621 | ) | |||||||||
Amortization of net loss | 692 | 1,220 | 2,015 | 3,832 | |||||||||||||
Net periodic benefit cost | $ | 62 | $ | 607 | $ | 75 | $ | 2,029 | |||||||||
UNITED KINGDOM | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30 | September 30 | ||||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Interest cost | $ | 245 | $ | 223 | $ | 735 | $ | 667 | |||||||||
Expected return on plan assets | (330 | ) | (234 | ) | (991 | ) | (700 | ) | |||||||||
Amortization of net loss | — | 71 | — | 213 | |||||||||||||
Net periodic benefit cost | $ | (85 | ) | $ | 60 | $ | (256 | ) | $ | 180 | |||||||
Defined Contribution Plan Expenses for Company's Retirement Savings Plans and Profit Sharing Plan | ' | ||||||||||||||||
Defined contribution plan expenses for the Company’s retirement savings and profit sharing plans were as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30 | September 30 | ||||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Retirement savings plans | $ | 1,139 | $ | 1,149 | $ | 3,448 | $ | 3,316 | |||||||||
Profit sharing plan | 840 | 1,293 | 2,831 | 3,903 | |||||||||||||
Total defined contribution expense | $ | 1,979 | $ | 2,442 | $ | 6,279 | $ | 7,219 | |||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Computation of Basic and Diluted Earnings Per Share | ' | ||||||||||||||||
Below is the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2014 and 2013. | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30 | September 30 | ||||||||||||||||
(In thousands, except per share amounts) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Computation of Basic Earnings per Share | |||||||||||||||||
Net income attributable to Stepan Company | $ | 13,491 | $ | 20,402 | $ | 50,862 | $ | 62,178 | |||||||||
Deduct dividends on preferred stock | — | — | — | 43 | |||||||||||||
Income applicable to common stock | $ | 13,491 | $ | 20,402 | $ | 50,862 | $ | 62,135 | |||||||||
Weighted-average number of common shares outstanding | 22,726 | 22,700 | 22,754 | 22,576 | |||||||||||||
Basic earnings per share | $ | 0.59 | $ | 0.9 | $ | 2.24 | $ | 2.75 | |||||||||
Computation of Diluted Earnings per Share | |||||||||||||||||
Net income attributable to Stepan Company | $ | 13,491 | $ | 20,402 | $ | 50,862 | $ | 62,178 | |||||||||
Weighted-average number of shares outstanding | 22,726 | 22,700 | 22,754 | 22,576 | |||||||||||||
Add weighted-average net shares issuable from assumed exercise of options (under treasury stock method) (1) | 138 | 188 | 159 | 224 | |||||||||||||
Add weighted-average net shares related to unvested stock awards (under treasury stock method) | 11 | 8 | 10 | 7 | |||||||||||||
Add weighted-average shares issuable from assumed conversion of convertible preferred stock | — | 40 | — | 107 | |||||||||||||
Weighted-average shares applicable to diluted earnings | 22,875 | 22,936 | 22,923 | 22,914 | |||||||||||||
Diluted earnings per share | $ | 0.59 | $ | 0.89 | $ | 2.22 | $ | 2.71 | |||||||||
(1) | Options to purchase 96,999 and 82,673 shares of common stock were not included in the computations of diluted earnings per share for the three and nine months ended September 30, 2014, respectively. Options to purchase 52,068 and 50,540 shares of common stock were not included in the computations of diluted earnings per share for the three and nine months ended September 30, 2013. The options’ exercise prices were greater than the average market price for the common stock and their effect would have been antidilutive. |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||
Summary of Changes in Accumulated Other Comprehensive Income | ' | ||||||||||||||||||
Below are the changes in the Company’s accumulated other comprehensive income (loss) (AOCI) balances by component (net of income taxes) for the three and nine month periods ended September 30, 2014 and 2013: | |||||||||||||||||||
(In thousands) | Foreign | Defined | Cash Flow | Total | |||||||||||||||
Currency | Benefit | Hedge | |||||||||||||||||
Translation | Pension Plan | Adjustments | |||||||||||||||||
Adjustments | Adjustments | ||||||||||||||||||
Balance at June 30, 2013 | $ | (15,473 | ) | $ | (33,770 | ) | $ | 113 | $ | (49,130 | ) | ||||||||
Other comprehensive income before reclassifications | 5,747 | — | — | 5,747 | |||||||||||||||
Amounts reclassified from AOCI | — | 810 | 3 | 813 | |||||||||||||||
Net current-period other comprehensive income | 5,747 | 810 | 3 | 6,560 | |||||||||||||||
Balance at September 30, 2013 | $ | (9,726 | ) | $ | (32,960 | ) | $ | 116 | $ | (42,570 | ) | ||||||||
Balance at June 30, 2014 | $ | (7,112 | ) | $ | (17,852 | ) | $ | 119 | $ | (24,845 | ) | ||||||||
Other comprehensive income before reclassifications | (19,546 | ) | — | — | (19,546 | ) | |||||||||||||
Amounts reclassified from AOCI | — | 429 | 2 | 431 | |||||||||||||||
Net current-period other comprehensive income | (19,546 | ) | 429 | 2 | (19,115 | ) | |||||||||||||
Balance at September 30, 3014 | $ | (26,658 | ) | $ | (17,423 | ) | $ | 121 | $ | (43,960 | ) | ||||||||
Balance at December 31, 2012 | $ | (2,886 | ) | $ | (35,498 | ) | $ | 134 | $ | (38,250 | ) | ||||||||
Other comprehensive income before reclassifications | (6,840 | ) | — | (29 | ) | (6,869 | ) | ||||||||||||
Amounts reclassified from AOCI | — | 2,538 | 11 | 2,549 | |||||||||||||||
Net current-period other comprehensive income | (6,840 | ) | 2,538 | (18 | ) | (4,320 | ) | ||||||||||||
Balance at September 30, 2013 | $ | (9,726 | ) | $ | (32,960 | ) | $ | 116 | $ | (42,570 | ) | ||||||||
Balance at December 31, 2013 | $ | (10,971 | ) | $ | (18,672 | ) | $ | 115 | $ | (29,528 | ) | ||||||||
Other comprehensive income before reclassifications | (15,687 | ) | — | — | (15,687 | ) | |||||||||||||
Amounts reclassified from AOCI | — | 1,249 | 6 | 1,255 | |||||||||||||||
Net current-period other comprehensive income | (15,687 | ) | 1,249 | 6 | (14,432 | ) | |||||||||||||
Balance at September 30, 2014 | $ | (26,658 | ) | $ | (17,423 | ) | $ | 121 | $ | (43,960 | ) | ||||||||
Summary of Reclassifications Out of Accumulated Other Comprehensive Income | ' | ||||||||||||||||||
Information regarding reclassifications out of AOCI for the three and nine month periods ended September 30, 2014 and 2013, is displayed below: | |||||||||||||||||||
Amount Reclassified from AOCI (a) | |||||||||||||||||||
(In thousands) | Three Months Ended | Nine Months Ended | Affected Line Item in | ||||||||||||||||
September 30 | September 30 | Consolidated | |||||||||||||||||
Statements of Income | |||||||||||||||||||
AOCI Components | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Amortization of defined benefit pension actuarial losses | $ | (692 | ) | $ | (1,291 | ) | $ | (2,015 | ) | $ | (4,045 | )(b) | |||||||
263 | 481 | 766 | 1,507 | Tax benefit | |||||||||||||||
$ | (429 | ) | $ | (810 | ) | $ | (1,249 | ) | $ | (2,538 | ) | Net of tax | |||||||
Gains and losses on cash flow hedges: | |||||||||||||||||||
Interest rate contracts | $ | (6 | ) | $ | (9 | ) | $ | (20 | ) | $ | (28 | ) | Interest, net | ||||||
Foreign exchange contracts | 2 | 2 | 7 | 7 | Cost of sales | ||||||||||||||
(4 | ) | (7 | ) | (13 | ) | (21 | ) | Total before tax | |||||||||||
2 | 4 | 7 | 10 | Tax benefit | |||||||||||||||
$ | (2 | ) | $ | (3 | ) | $ | (6 | ) | $ | (11 | ) | Net of tax | |||||||
Total reclassifications for the period | $ | (431 | ) | $ | (813 | ) | $ | (1,255 | ) | $ | (2,549 | ) | Net of tax | ||||||
(a) | Amounts in parentheses denote expense to statement of income. | ||||||||||||||||||
(b) | This component of accumulated other comprehensive income is included in the computation of net periodic benefit cost (see Note 8 for additional details). |
Segment_Reporting_Tables
Segment Reporting (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Operating Segment | ' | ||||||||||||||||
The Company has three reportable segments: surfactants, polymers and specialty products. Net sales by segment for the three and nine months ended September 30, 2014 and 2013, were as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30 | September 30 | ||||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Segment Net Sales | |||||||||||||||||
Surfactants | $ | 318,486 | $ | 318,357 | $ | 987,957 | $ | 989,417 | |||||||||
Polymers | 152,955 | 137,649 | 420,332 | 354,972 | |||||||||||||
Specialty Products | 19,988 | 19,460 | 64,693 | 62,068 | |||||||||||||
Total | $ | 491,429 | $ | 475,466 | $ | 1,472,982 | $ | 1,406,457 | |||||||||
Reconciliation of Segment Information to Consolidated Financial Statements | ' | ||||||||||||||||
Segment operating income and reconciliations of segment operating income to consolidated income before income taxes for the three and nine months ended September 30, 2014 and 2013, are summarized below: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
30-Sep | 30-Sep | ||||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Segment Operating Income | |||||||||||||||||
Surfactants | $ | 11,115 | $ | 24,094 | $ | 48,692 | $ | 79,712 | |||||||||
Polymers | 18,268 | 19,076 | 47,538 | 43,364 | |||||||||||||
Specialty Products | 3,029 | 1,311 | 10,600 | 8,340 | |||||||||||||
Segment operating income | 32,412 | 44,481 | 106,830 | 131,416 | |||||||||||||
Unallocated corporate expenses (1) | (10,159 | ) | (13,396 | ) | (25,140 | ) | (36,168 | ) | |||||||||
Consolidated operating income | 22,253 | 31,085 | 81,690 | 95,248 | |||||||||||||
Interest expense, net | (2,846 | ) | (2,987 | ) | (8,824 | ) | (7,495 | ) | |||||||||
Loss from equity in joint ventures | (1,148 | ) | (1,325 | ) | (3,842 | ) | (4,061 | ) | |||||||||
Other, net | (31 | ) | 1,074 | 499 | 1,628 | ||||||||||||
Consolidated income before income taxes | $ | 18,228 | $ | 27,847 | $ | 69,523 | $ | 85,320 | |||||||||
(1) | Unallocated corporate expenses primarily comprise corporate administrative expenses (e.g., corporate finance, legal, human resources, information systems, deferred compensation and environmental remediation) that are not included in segment operating income and not used to evaluate segment performance. |
Debt_Tables
Debt (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||
Debt | ' | ||||||||||||
At September 30, 2014, and December 31, 2013, debt comprised the following: | |||||||||||||
(In thousands) | Maturity | September 30, | December 31, | ||||||||||
Dates | 2014 | 2013 | |||||||||||
Unsecured private placement notes | |||||||||||||
3.86% | 2019-2025 | $ | 100,000 | $ | 100,000 | ||||||||
4.86% | 2017-2023 | 65,000 | 65,000 | ||||||||||
5.88% | 2016-2022 | 40,000 | 40,000 | ||||||||||
5.69% | 2014-2018 | 28,571 | 28,571 | ||||||||||
6.86% | 2015 | 4,284 | 8,570 | ||||||||||
Debt of foreign subsidiaries | |||||||||||||
Secured bank term loans, foreign currency | 2014-2016 | 3,474 | 5,843 | ||||||||||
Unsecured bank debt, U.S. dollars | 2014 | 413 | 998 | ||||||||||
Other loans, foreign currency | 2014 | 23,420 | 21,641 | ||||||||||
Total debt | $ | 265,162 | $ | 270,623 | |||||||||
Less current maturities | 36,356 | 35,377 | |||||||||||
Long-term debt | $ | 228,806 | $ | 235,246 | |||||||||
Other_Net_Tables
Other, Net (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Other Income and Expenses [Abstract] | ' | ||||||||||||||||
Other Net in Consolidated Statements of Income | ' | ||||||||||||||||
Other, net in the consolidated statements of income included the following: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30 | September 30 | ||||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Foreign exchange (loss) | $ | (233 | ) | $ | (58 | ) | $ | (531 | ) | $ | (668 | ) | |||||
Investment income | 14 | 17 | 287 | 110 | |||||||||||||
Realized and unrealized gain | 188 | 1,115 | 743 | 2,186 | |||||||||||||
on investments | |||||||||||||||||
Other, net | $ | (31 | ) | $ | 1,074 | $ | 499 | $ | 1,628 | ||||||||
Business_Restructuring_Tables
Business Restructuring (Tables) | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Restructuring and Related Activities [Abstract] | ' | ||||
Reconciliation of Restructuring Liability | ' | ||||
Following is a reconciliation of the beginning and ending balances of the restructuring liability: | |||||
(In thousands) | Severance | ||||
Expense | |||||
Restructuring liability at December 31, 2013 | $ | 1,040 | |||
Amounts paid | (288 | ) | |||
Restructuring liability at March 31, 2014 | $ | 752 | |||
Amounts paid | — | ||||
Restructuring liability at June 30, 2014 | $ | 752 | |||
Amounts paid | (46 | ) | |||
Foreign currency translation | (38 | ) | |||
Restructuring liability at September 30, 2014 | $ | 668 | |||
Acquisition_Tables
Acquisition (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Business Combinations [Abstract] | ' | ||||||||
Summary of Assets Acquired and Liabilities Assumed | ' | ||||||||
The following table summarizes the assets acquired and liabilities assumed: | |||||||||
(In thousands) | June 1, 2013 | ||||||||
Assets: | |||||||||
Inventory | $ | 9,002 | |||||||
Property, plant and equipment | 37,000 | ||||||||
Identifiable intangible assets | 17,800 | ||||||||
Goodwill | 4,642 | ||||||||
Total assets acquired | $ | 68,444 | |||||||
Liabilities: | |||||||||
Accrued expenses | 232 | ||||||||
Net assets acquired | $ | 68,212 | |||||||
Summary of Pro Forma Financial Information | ' | ||||||||
The following is third quarter quarter and year-to-date 2013 pro forma financial information prepared under the assumption that the acquisition of the BMS North American polyester resins business occurred on January 1, 2012. | |||||||||
Three Months Ended | Nine Months Ended | ||||||||
September 30 | September 30 | ||||||||
(In thousands, except per share amounts) | 2013 | 2013 | |||||||
Net Sales | $ | 475,466 | $ | 1,433,278 | |||||
Net Income Attributable to Stepan Company | $ | 20,603 | $ | 63,064 | |||||
Net Income Per Common Share Attributable to Stepan Company: | |||||||||
Basic | $ | 0.91 | $ | 2.79 | |||||
Diluted | $ | 0.9 | $ | 2.75 | |||||
Reconciliations_of_Equity_Reco
Reconciliations of Equity - Reconciliations of Total Equity (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Reconciliations of total equity | ' | ' | ' | ' | ||||
Beginning Balance | ' | ' | $553,741 | $480,880 | ||||
Beginning Balance | ' | ' | 552,286 | ' | ||||
Beginning Balance | ' | ' | 1,455 | ' | ||||
Net income (loss) | 13,480 | 20,149 | 50,856 | 61,800 | ||||
Net income (loss) | 13,491 | 20,402 | 50,862 | 62,178 | ||||
Net income (loss) | -11 | -253 | -6 | -378 | ||||
Dividends | ' | ' | -11,381 | -10,678 | ||||
Common stock purchases | ' | ' | -6,723 | [1] | -3,334 | [1] | ||
Redemption of preferred stock | ' | -21 | ' | -21 | ||||
Stock option exercises | ' | ' | 1,563 | 3,715 | ||||
Defined benefit pension adjustments, net of tax | 429 | 810 | 1,249 | 2,538 | ||||
Translation adjustments | -19,521 | 5,752 | -15,709 | -6,806 | ||||
Derivative instrument activity, net of tax | 2 | 3 | 6 | -18 | ||||
Other | ' | ' | 2,241 | [2] | 4,750 | [2] | ||
Ending Balance | 575,843 | 532,826 | 575,843 | 532,826 | ||||
Ending Balance | 574,416 | ' | 574,416 | ' | ||||
Ending Balance | 1,427 | ' | 1,427 | ' | ||||
Stepan Company Equity [Member] | ' | ' | ' | ' | ||||
Reconciliations of total equity | ' | ' | ' | ' | ||||
Beginning Balance | ' | ' | 552,286 | 478,985 | ||||
Net income (loss) | ' | ' | 50,862 | 62,178 | ||||
Dividends | ' | ' | -11,381 | -10,678 | ||||
Common stock purchases | ' | ' | -6,723 | [1] | -3,334 | [1] | ||
Redemption of preferred stock | ' | -21 | ' | -21 | ||||
Stock option exercises | ' | ' | 1,563 | 3,715 | ||||
Defined benefit pension adjustments, net of tax | ' | ' | 1,249 | 2,538 | ||||
Translation adjustments | ' | ' | -15,687 | -6,840 | ||||
Derivative instrument activity, net of tax | ' | ' | 6 | -18 | ||||
Other | ' | ' | 2,241 | [2] | 4,750 | [2] | ||
Ending Balance | 574,416 | 531,275 | 574,416 | 531,275 | ||||
Noncontrolling Interests' Equity [Member] | ' | ' | ' | ' | ||||
Reconciliations of total equity | ' | ' | ' | ' | ||||
Beginning Balance | ' | ' | 1,455 | [3] | 1,895 | [3] | ||
Net income (loss) | ' | ' | -6 | [3] | -378 | [3] | ||
Dividends | ' | ' | ' | ' | [3] | |||
Common stock purchases | ' | ' | ' | ' | [1],[3] | |||
Redemption of preferred stock | ' | ' | [3] | ' | ' | [3] | ||
Stock option exercises | ' | ' | ' | ' | [3] | |||
Defined benefit pension adjustments, net of tax | ' | ' | ' | ' | [3] | |||
Translation adjustments | ' | ' | -22 | [3] | 34 | [3] | ||
Derivative instrument activity, net of tax | ' | ' | ' | ' | [3] | |||
Other | ' | ' | ' | ' | [2],[3] | |||
Ending Balance | $1,427 | [3] | $1,551 | [3] | $1,427 | [3] | $1,551 | [3] |
[1] | Includes the value of Company shares purchased in the open market, the value of Company common shares tendered by employees to settle minimum statutory withholding taxes related to the receipt of performance awards and deferred compensation distributions. | |||||||
[2] | Primarily comprised of activity related to stock-based compensation, deferred compensation and excess tax benefits. | |||||||
[3] | Consists entirely of noncontrolling interest in the Company's China joint venture. |
Fair_Value_Measurements_Fair_V
Fair Value Measurements - Fair Value of Debt and Related Carrying Values (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument Fair Value Carrying Value [Abstract] | ' | ' |
Carrying value | $265,162 | $270,623 |
Level 2 [Member] | ' | ' |
Debt Instrument Fair Value Carrying Value [Abstract] | ' | ' |
Fair value | $276,956 | $276,069 |
Fair_Value_Measurements_Financ
Fair Value Measurements - Financial Assets and Liabilities Measured on a Recurring Basis at Fair Value (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial assets and liabilities measured on a recurring basis at fair value | ' | ' |
Mutual fund assets | $19,529 | $18,305 |
Derivative assets: | ' | ' |
Foreign currency contracts | 41 | 74 |
Total assets at fair value | 19,570 | 18,379 |
Derivative liabilities: | ' | ' |
Foreign currency contracts | 376 | 165 |
Interest rate contracts | ' | 20 |
Total liabilities at fair value | ' | 185 |
Level 1 [Member] | ' | ' |
Financial assets and liabilities measured on a recurring basis at fair value | ' | ' |
Mutual fund assets | 19,529 | 18,305 |
Derivative assets: | ' | ' |
Foreign currency contracts | ' | ' |
Total assets at fair value | 19,529 | 18,305 |
Derivative liabilities: | ' | ' |
Foreign currency contracts | ' | ' |
Interest rate contracts | ' | ' |
Total liabilities at fair value | ' | ' |
Level 2 [Member] | ' | ' |
Financial assets and liabilities measured on a recurring basis at fair value | ' | ' |
Mutual fund assets | ' | ' |
Derivative assets: | ' | ' |
Foreign currency contracts | 41 | 74 |
Total assets at fair value | 41 | 74 |
Derivative liabilities: | ' | ' |
Foreign currency contracts | 376 | 165 |
Interest rate contracts | ' | 20 |
Total liabilities at fair value | ' | 185 |
Level 3 [Member] | ' | ' |
Financial assets and liabilities measured on a recurring basis at fair value | ' | ' |
Mutual fund assets | ' | ' |
Derivative assets: | ' | ' |
Foreign currency contracts | ' | ' |
Total assets at fair value | ' | ' |
Derivative liabilities: | ' | ' |
Foreign currency contracts | ' | ' |
Interest rate contracts | ' | ' |
Total liabilities at fair value | ' | ' |
Derivative_Instruments_Additio
Derivative Instruments - Additional Information (Detail) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2013 | |
Derivative notional amount | $21,465,000 | $20,289,000 |
Derivative foreign currency exchange contracts settlement date | '1 month | ' |
Cash flow hedges [Member] | Interest rate contracts [Member] | ' | ' |
Derivative notional amount | $0 | $2,268,000 |
StockBased_Compensation_Compen
Stock-Based Compensation - Compensation (Income) Expense Recognized for All Stock Options, Stock Awards and SARs (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ' | ' | ' | ' |
Compensation expense/(income) | ($164) | $996 | $606 | $1,420 |
StockBased_Compensation_Unreco
Stock-Based Compensation - Unrecognized Compensation Costs for Stock Options, Stock Awards and SARs (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Unrecognized compensation costs for stock options, stock awards and SARs | ' | ' |
Unrecognized compensation costs for stock options, stock awards and SARs | $4,558 | $4,207 |
Stock options [Member] | ' | ' |
Unrecognized compensation costs for stock options, stock awards and SARs | ' | ' |
Unrecognized compensation costs for stock options, stock awards and SARs | 1,068 | 756 |
Stock awards [Member] | ' | ' |
Unrecognized compensation costs for stock options, stock awards and SARs | ' | ' |
Unrecognized compensation costs for stock options, stock awards and SARs | 2,316 | 2,086 |
Stock appreciation rights (SARs) [Member] | ' | ' |
Unrecognized compensation costs for stock options, stock awards and SARs | ' | ' |
Unrecognized compensation costs for stock options, stock awards and SARs | $1,174 | $1,365 |
StockBased_Compensation_Share_
Stock-Based Compensation - Share Based Payment Awards Granted in Period (Detail) | 9 Months Ended |
Sep. 30, 2014 | |
Stock options [Member] | ' |
Awards granted in period | ' |
Stock options granted in period | 53,175 |
Stock awards [Member] | ' |
Awards granted in period | ' |
Awards granted in period | 45,586 |
Stock appreciation rights (SARs) [Member] | ' |
Awards granted in period | ' |
Awards granted in period | 116,843 |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2014 | |
Stock options [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Weighted-average periods for amortization of unrecognizable compensation for compensation arrangements | '1 year 2 months 12 days |
Stock awards [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Weighted-average periods for amortization of unrecognizable compensation for compensation arrangements | '1 year 10 months 24 days |
Stock appreciation rights (SARs) [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Weighted-average periods for amortization of unrecognizable compensation for compensation arrangements | '1 year 3 months 18 days |
Inventories_Composition_of_Inv
Inventories - Composition of Inventories (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Finished goods | $136,703 | $123,212 |
Raw materials | 60,126 | 49,156 |
Total inventories | $196,829 | $172,368 |
Inventories_Additional_Informa
Inventories - Additional Information (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Inventory Disclosure [Abstract] | ' | ' |
LIFO reserve | $36,296,000 | $30,786,000 |
Contingencies_Additional_Infor
Contingencies - Additional Information (Detail) (USD $) | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
States | |||
Site Contingency [Line Items] | ' | ' | ' |
Environmental and legal losses, minimum | $19.10 | ' | ' |
Environmental and legal losses, maximum | 29 | ' | ' |
Accrued liability for losses | 19.2 | ' | 14.7 |
Accrual for environmental loss contingencies, increase (decrease) for revision in estimates | 4.3 | ' | ' |
Cash outlays related to legal and environmental matters | 0.8 | 1.8 | ' |
Number of states examining company unclaimed property records | 7 | ' | ' |
Maywood Site [Member] | ' | ' | ' |
Site Contingency [Line Items] | ' | ' | ' |
Accrual for environmental loss contingencies, increase (decrease) for revision in estimates | 4.3 | ' | ' |
Wilmington Site [Member] | ' | ' | ' |
Site Contingency [Line Items] | ' | ' | ' |
Payment of environmental response costs | $2.30 | ' | ' |
Contribution for future response costs | 5.00% | ' | ' |
Postretirement_Benefit_Plans_C
Postretirement Benefit Plans - Components of Net Periodic Benefit Cost (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
United States [Member] | ' | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' | ' |
Interest cost | $1,756 | $1,604 | $5,202 | $4,818 |
Expected return on plan assets | -2,386 | -2,217 | -7,142 | -6,621 |
Amortization of net loss | 692 | 1,220 | 2,015 | 3,832 |
Net periodic benefit cost | 62 | 607 | 75 | 2,029 |
United Kingdom [Member] | ' | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' | ' |
Interest cost | 245 | 223 | 735 | 667 |
Expected return on plan assets | -330 | -234 | -991 | -700 |
Amortization of net loss | ' | 71 | ' | 213 |
Net periodic benefit cost | ($85) | $60 | ($256) | $180 |
Postretirement_Benefit_Plans_E
Postretirement Benefit Plans - Employer Contributions - Additional Information (Detail) (Defined Benefit Pension Plan [Member], USD $) | 9 Months Ended |
Sep. 30, 2014 | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ' |
Balance of trust assets | $1,778,000 |
United States [Member] | ' |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ' |
Company's expected contribution to qualified plan | 1,420,000 |
Expected payment related to unqualified plan | 185,000 |
Employer contributions | 1,229,000 |
Payments related to non-qualified plans | 178,000 |
United Kingdom [Member] | ' |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ' |
Company's expected contribution to qualified plan | 1,005,000 |
Employer contributions | $780,000 |
Postretirement_Benefit_Plans_D
Postretirement Benefit Plans - Defined Contribution Plan Expenses for Company's Retirement Savings Plans and Profit Sharing Plan (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ' | ' | ' | ' |
Total defined contribution expense | $1,979 | $2,442 | $6,279 | $7,219 |
Retirement savings plans [Member] | ' | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ' | ' | ' | ' |
Total defined contribution expense | 1,139 | 1,149 | 3,448 | 3,316 |
Profit sharing plan [Member] | ' | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ' | ' | ' | ' |
Total defined contribution expense | $840 | $1,293 | $2,831 | $3,903 |
Earnings_Per_Share_Computation
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Computation of Basic Earnings per Share | ' | ' | ' | ' | ||||
Net income attributable to Stepan Company | $13,491 | $20,402 | $50,862 | $62,178 | ||||
Deduct dividends on preferred stock | ' | ' | ' | 43 | ||||
Income applicable to common stock | 13,491 | 20,402 | 50,862 | 62,135 | ||||
Weighted-average number of shares outstanding | 22,726 | 22,700 | 22,754 | 22,576 | ||||
Basic earnings per share | $0.59 | $0.90 | $2.24 | $2.75 | ||||
Computation of Diluted Earnings per Share | ' | ' | ' | ' | ||||
Net income attributable to Stepan Company | $13,491 | $20,402 | $50,862 | $62,178 | ||||
Weighted-average number of shares outstanding | 22,726 | 22,700 | 22,754 | 22,576 | ||||
Add weighted-average net shares issuable from assumed exercise of options (under treasury stock method) | 138 | [1] | 188 | [1] | 159 | [1] | 224 | [1] |
Add weighted-average net shares related to unvested stock awards (under treasury stock method) | 11 | 8 | 10 | 7 | ||||
Add weighted-average shares issuable from assumed conversion of convertible preferred stock | ' | 40 | ' | 107 | ||||
Weighted-average shares applicable to diluted earnings | 22,875 | 22,936 | 22,923 | 22,914 | ||||
Diluted earnings per share | $0.59 | $0.89 | $2.22 | $2.71 | ||||
[1] | Options to purchase 96,999 and 82,673 shares of common stock were not included in the computations of diluted earnings per share for the three and nine months ended September 30, 2014, respectively. Options to purchase 52,068 and 50,540 shares of common stock were not included in the computations of diluted earnings per share for the three and nine months ended September 30, 2013. The options' exercise prices were greater than the average market price for the common stock and their effect would have been antidilutive. |
Earnings_Per_Share_Computation1
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Parenthetical) (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Options to purchase shares of common stock not included in the computations of diluted earnings per share | 96,999 | 52,068 | 82,673 | 50,540 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) - Summary of Changes in Accumulated Other Comprehensive Income (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), beginning balance | ($24,845) | ($49,130) | ($29,528) | ($38,250) |
Other comprehensive income before reclassifications | -19,546 | 5,747 | -15,687 | -6,869 |
Amounts reclassified from AOCI | 431 | 813 | 1,255 | 2,549 |
Net current-period other comprehensive income | -19,115 | 6,560 | -14,432 | -4,320 |
Accumulated Other Comprehensive Income (Loss), ending balance | -43,960 | -42,570 | -43,960 | -42,570 |
Foreign Currency Translation Adjustments [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), beginning balance | -7,112 | -15,473 | -10,971 | -2,886 |
Other comprehensive income before reclassifications | -19,546 | 5,747 | -15,687 | -6,840 |
Net current-period other comprehensive income | -19,546 | 5,747 | -15,687 | -6,840 |
Accumulated Other Comprehensive Income (Loss), ending balance | -26,658 | -9,726 | -26,658 | -9,726 |
Defined Benefit Pension Plan Adjustments [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), beginning balance | -17,852 | -33,770 | -18,672 | -35,498 |
Amounts reclassified from AOCI | 429 | 810 | 1,249 | 2,538 |
Net current-period other comprehensive income | 429 | 810 | 1,249 | 2,538 |
Accumulated Other Comprehensive Income (Loss), ending balance | -17,423 | -32,960 | -17,423 | -32,960 |
Cash Flow Hedge Adjustments [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), beginning balance | 119 | 113 | 115 | 134 |
Other comprehensive income before reclassifications | ' | ' | ' | -29 |
Amounts reclassified from AOCI | 2 | 3 | 6 | 11 |
Net current-period other comprehensive income | 2 | 3 | 6 | -18 |
Accumulated Other Comprehensive Income (Loss), ending balance | $121 | $116 | $121 | $116 |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Loss) - Summary of Reclassifications Out of Accumulated Other Comprehensive Income (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Tax benefit | ($4,748) | ($7,698) | ($18,667) | ($23,520) | ||||
Income applicable to common stock | 13,491 | 20,402 | 50,862 | 62,135 | ||||
Amount Reclassified From Accumulated Other Comprehensive Income [Member] | Cash flow hedges [Member] | ' | ' | ' | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Total before tax | -4 | [1] | -7 | [1] | -13 | [1] | -21 | [1] |
Tax benefit | 2 | [1] | 4 | [1] | 7 | [1] | 10 | [1] |
Income applicable to common stock | -2 | [1] | -3 | [1] | -6 | [1] | -11 | [1] |
Interest rate contracts [Member] | Amount Reclassified From Accumulated Other Comprehensive Income [Member] | Cash flow hedges [Member] | ' | ' | ' | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Interest, net | -6 | [1] | -9 | [1] | -20 | [1] | -28 | [1] |
Foreign exchange contracts [Member] | Amount Reclassified From Accumulated Other Comprehensive Income [Member] | Cash flow hedges [Member] | ' | ' | ' | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Cost of sales | 2 | [1] | 2 | [1] | 7 | [1] | 7 | [1] |
Defined Benefit Pension Plan Adjustments [Member] | Amount Reclassified From Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Amortization of actuarial losses | -692 | [1] | -1,291 | [1] | -2,015 | [1] | -4,045 | [1],[2] |
Tax benefit | 263 | [1] | 481 | [1] | 766 | [1] | 1,507 | [1] |
Income applicable to common stock | -429 | [1] | -810 | [1] | -1,249 | [1] | -2,538 | [1] |
Accumulated Other Comprehensive Income (Loss) [Member] | ' | ' | ' | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Income applicable to common stock | ($431) | [1] | ($813) | [1] | ($1,255) | [1] | ($2,549) | [1] |
[1] | (a) Amounts in parentheses denote expense to statement of income. | |||||||
[2] | (b) This component of accumulated other comprehensive income is included in the computation of net periodic benefit cost (see Note 8 for additional details). |
Segment_Reporting_Additional_I
Segment Reporting - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2014 | |
Segment | |
Segment Reporting [Abstract] | ' |
Number of reportable segments | 3 |
Segment_Reporting_Operating_Se
Segment Reporting - Operating Segment (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net Sales | $491,429 | $475,466 | $1,472,982 | $1,406,457 |
Operating Segments [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net Sales | 491,429 | 475,466 | 1,472,982 | 1,406,457 |
Operating Segments [Member] | Surfactants [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net Sales | 318,486 | 318,357 | 987,957 | 989,417 |
Operating Segments [Member] | Polymers [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net Sales | 152,955 | 137,649 | 420,332 | 354,972 |
Operating Segments [Member] | Specialty Products [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net Sales | $19,988 | $19,460 | $64,693 | $62,068 |
Segment_Reporting_Reconciliati
Segment Reporting - Reconciliation of Segment Information to Consolidated Financial Statements (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Operating income | $22,253 | $31,085 | $81,690 | $95,248 | ||||
Interest expense, net | -2,846 | -2,987 | -8,824 | -7,495 | ||||
Loss from equity in joint ventures | -1,148 | -1,325 | -3,842 | -4,061 | ||||
Other, net | -31 | 1,074 | 499 | 1,628 | ||||
Income Before Provision for Income Taxes | 18,228 | 27,847 | 69,523 | 85,320 | ||||
Operating Segments [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Operating income | 32,412 | 44,481 | 106,830 | 131,416 | ||||
Operating Segments [Member] | Surfactants [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Operating income | 11,115 | 24,094 | 48,692 | 79,712 | ||||
Operating Segments [Member] | Polymers [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Operating income | 18,268 | 19,076 | 47,538 | 43,364 | ||||
Operating Segments [Member] | Specialty Products [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Operating income | 3,029 | 1,311 | 10,600 | 8,340 | ||||
Corporate, Non-Segment [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Operating income | ($10,159) | [1] | ($13,396) | [1] | ($25,140) | [1] | ($36,168) | [1] |
[1] | Unallocated corporate expenses primarily comprise corporate administrative expenses (e.g., corporate finance, legal, human resources, information systems, deferred compensation and environmental remediation) that are not included in segment operating income and not used to evaluate segment performance. |
Debt_Debt_Detail
Debt - Debt (Detail) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ' | ' |
Total debt | $265,162 | $270,623 |
Less current maturities | 36,356 | 35,377 |
Long-term debt | 228,806 | 235,246 |
Unsecured private placement 3.86% note [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | 100,000 | 100,000 |
Debt instrument interest rate percentage | 3.86% | 3.86% |
Maturity Dates | '2019-2025 | '2019-2025 |
Unsecured private placement 4.86% note [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | 65,000 | 65,000 |
Debt instrument interest rate percentage | 4.86% | 4.86% |
Maturity Dates | '2017-2023 | '2017-2023 |
Unsecured private placement 5.88% note [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | 40,000 | 40,000 |
Debt instrument interest rate percentage | 5.88% | 5.88% |
Maturity Dates | '2016-2022 | '2016-2022 |
Unsecured private placement 5.69% note [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | 28,571 | 28,571 |
Debt instrument interest rate percentage | 5.69% | 5.69% |
Maturity Dates | '2014-2018 | '2014-2018 |
Unsecured private placement 6.86% note [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | 4,284 | 8,570 |
Debt instrument interest rate percentage | 6.86% | 6.86% |
Maturity Dates | '2015 | '2015 |
Debt of foreign subsidiaries Secured bank term loans, foreign currency [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | 3,474 | 5,843 |
Maturity Dates | '2014-2016 | '2014-2016 |
Debt of foreign subsidiaries Unsecured bank debt, U.S dollars [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | 413 | 998 |
Maturity Dates | '2014 | '2014 |
Debt of foreign subsidiaries Other loans, foreign currency [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | $23,420 | $21,641 |
Maturity Dates | '2014 | '2014 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 9 Months Ended | ||
Sep. 30, 2014 | Dec. 31, 2013 | Jul. 10, 2014 | |
Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | ' | ' | ' |
Revolving credit agreement | ' | ' | $125,000,000 |
Credit agreement expire period, start period | 20-Sep-17 | ' | ' |
Credit agreement expire period, end period | 10-Jul-19 | ' | ' |
Letters of Credit Outstanding | 2,977,000 | ' | ' |
Debt Outstanding | 0 | ' | ' |
Unused Revolving credit | 122,023,000 | ' | ' |
Unrestricted retained earnings | $92,459,000 | $148,467,000 | ' |
Other_Net_Other_Net_in_Consoli
Other, Net - Other Net in Consolidated Statements of Income (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Other Nonoperating Income (Expense) [Abstract] | ' | ' | ' | ' |
Foreign exchange (loss) | ($233) | ($58) | ($531) | ($668) |
Investment income | 14 | 17 | 287 | 110 |
Realized and unrealized gain on investments | 188 | 1,115 | 743 | 2,186 |
Other, net | ($31) | $1,074 | $499 | $1,628 |
Allowance_for_Doubtful_Account1
Allowance for Doubtful Accounts - Additional Information (Detail) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 |
Receivables [Abstract] | ' |
Increased allowance for doubtful accounts | $3,425 |
Business_Restructuring_Additio
Business Restructuring - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2014 | |
Employees | |||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Number of North American positions eliminated | ' | 16 | ' |
Accelerated depreciation expenses | $296,000 | ' | $1,825,000 |
Surfactants [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring charge for estimated severance expense related to an approved plan | $1,040,000 | ' | ' |
Business_Restructuring_Reconci
Business Restructuring - Reconciliation of Restructuring Liability (Detail) (Severance Expense [Member], USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 |
Severance Expense [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring liability at Beginning Balance | $752 | $752 | $1,040 |
Amounts paid | -46 | ' | -288 |
Foreign currency translation | -38 | ' | ' |
Restructuring liability at Ending Balance | $668 | $752 | $752 |
Acquisition_Additional_Informa
Acquisition - Additional Information (Detail) (USD $) | 6 Months Ended | 0 Months Ended | 12 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | ||||
Jun. 30, 2013 | Jun. 01, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Jun. 01, 2013 | Sep. 30, 2014 | Jun. 01, 2013 | Sep. 30, 2014 | Jun. 01, 2013 | Jul. 15, 2014 | |
Bayer Material Science [Member] | Bayer Material Science [Member] | Bayer Material Science [Member] | Bayer Material Science [Member] | Bayer Material Science [Member] | Bayer Material Science [Member] | Bayer Material Science [Member] | Bayer Material Science [Member] | Procter and Gamble Company [Member] | ||
T | Know-how [Member] | Know-how [Member] | Trademark and Trade Name [Member] | Trademark and Trade Name [Member] | Customer Relationships [Member] | Customer Relationships [Member] | Brazil [Member] | |||
T | ||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capacity of production facility purchased in connection with acquisition | ' | 21,000 | ' | ' | ' | ' | ' | ' | ' | 30,000 |
Acquisition purchase price | ' | $68,212,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition cash paid | ' | 61,067,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition consideration payable for inventory | ' | ' | 7,145,000 | ' | ' | ' | ' | ' | ' | ' |
Private placement loan | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Identifiable intangible assets | ' | $17,800,000 | ' | ' | $7,900,000 | ' | $3,800,000 | ' | $6,100,000 | ' |
Amortization periods for the identifiable intangible assets at the time of acquisition | ' | ' | ' | '8 years | ' | '11 years | ' | '12 years | ' | ' |
Acquisition_Summary_of_Assets_
Acquisition - Summary of Assets Acquired and Liabilities Assumed (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Jun. 01, 2013 |
In Thousands, unless otherwise specified | Bayer Material Science [Member] | ||
Assets: | ' | ' | ' |
Inventory | ' | ' | $9,002 |
Property, plant and equipment | ' | ' | 37,000 |
Identifiable intangible assets | ' | ' | 17,800 |
Goodwill | 11,587 | 11,726 | 4,642 |
Total assets acquired | ' | ' | 68,444 |
Liabilities: | ' | ' | ' |
Accrued expenses | ' | ' | 232 |
Net assets acquired | ' | ' | $68,212 |
Acquisition_Summary_of_Pro_For
Acquisition - Summary of Pro Forma Financial Information (Detail) (Bayer Material Science [Member], USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Bayer Material Science [Member] | ' | ' |
Business Acquisition Pro Forma Information [Line Items] | ' | ' |
Net Sales | $475,466 | $1,433,278 |
Net Income Attributable to Stepan Company | $20,603 | $63,064 |
Net Income Per Common Share Attributable to Stepan Company: | ' | ' |
Basic | $0.91 | $2.79 |
Diluted | $0.90 | $2.75 |
Preferred_Stock_Redemption_Add
Preferred Stock Redemption - Additional Information (Detail) (USD $) | 0 Months Ended | 2 Months Ended | 9 Months Ended | ||
Aug. 09, 2013 | Aug. 08, 2013 | Sep. 30, 2014 | Aug. 09, 2013 | Jun. 12, 2013 | |
Preferred Stock [Line Items] | ' | ' | ' | ' | ' |
Preferred stock redemption date | ' | ' | 9-Aug-13 | ' | ' |
Preferred stock dividend rate | 5.50% | ' | ' | ' | ' |
Preferred stock outstanding | ' | ' | ' | ' | 61,735 |
Number of Preferred shares converted | ' | 60,900 | ' | ' | ' |
Number of common shares issued upon conversion of preferred stock | ' | 139,029 | ' | ' | ' |
Preferred shares redeemed | 835 | ' | ' | ' | ' |
Aggregate redemption price | ' | ' | ' | $25.26 | ' |
Price Per Share [Member] | ' | ' | ' | ' | ' |
Preferred Stock [Line Items] | ' | ' | ' | ' | ' |
Aggregate redemption price | $25 | ' | ' | $25 | ' |
Accrued and Unpaid Dividends [Member] | ' | ' | ' | ' | ' |
Preferred Stock [Line Items] | ' | ' | ' | ' | ' |
Aggregate redemption price | $0.26 | ' | ' | $0.26 | ' |
Insurance_Recovery_Additional_
Insurance Recovery - Additional Information (Detail) (USD $) | 1 Months Ended |
Aug. 31, 2013 | |
Insurance Recovery For Business Interruption [Abstract] | ' |
Insurance recovery received for business interruption losses | $3,730,000 |