Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 17, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | SCL | |
Entity Registrant Name | STEPAN CO | |
Entity Central Index Key | 94049 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 22,281,254 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
Net Sales | $460,451 | $477,442 |
Cost of Sales | 384,009 | 414,418 |
Gross Profit | 76,442 | 63,024 |
Operating Expenses: | ||
Selling | 12,997 | 14,146 |
Administrative | 19,339 | 14,431 |
Research, development and technical services | 11,790 | 11,924 |
Total Operating expenses | 44,126 | 40,501 |
Gain on sale of product line (Note 14) | 2,862 | |
Operating Income | 35,178 | 22,523 |
Other Income (Expense): | ||
Interest, net | -4,054 | -2,957 |
Loss from equity in joint ventures | -1,240 | -1,451 |
Other, net (Note 13) | 652 | -26 |
Nonoperating Income (Expense), Total | -4,642 | -4,434 |
Income Before Provision for Income Taxes | 30,536 | 18,089 |
Provision for Income Taxes | 9,250 | 5,081 |
Net Income | 21,286 | 13,008 |
Net (Income) Loss Attributable to Noncontrolling Interests (Note 2) | -16 | 10 |
Net Income Attributable to Stepan Company | $21,270 | $13,018 |
Net Income Per Common Share Attributable to Stepan Company (Note 9): | ||
Basic | $0.94 | $0.57 |
Diluted | $0.93 | $0.57 |
Shares Used to Compute Net Income Per Common Share Attributable to Stepan Company (Note 9): | ||
Basic | 22,718 | 22,773 |
Diluted | 22,827 | 22,964 |
Dividends Declared Per Common Share | $0.18 | $0.17 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income | $21,286 | $13,008 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments (Note 10) | -25,152 | 94 |
Pension liability adjustment, net of tax (Note 10) | 749 | 410 |
Derivative instrument activity, net of tax (Note 10) | -42 | 3 |
Other comprehensive income (loss) | -24,445 | 507 |
Comprehensive income (loss) | -3,159 | 13,515 |
Comprehensive (income) loss attributable to noncontrolling interests (Note 2) | -1 | 33 |
Comprehensive income (loss) attributable to Stepan Company | ($3,160) | $13,548 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current Assets: | ||
Cash and cash equivalents | $97,308 | $85,215 |
Receivables, net | 271,510 | 270,436 |
Inventories (Note 6) | 172,168 | 183,233 |
Deferred income taxes | 15,548 | 15,364 |
Other current assets | 22,397 | 21,308 |
Total current assets | 578,931 | 575,556 |
Property, Plant and Equipment: | ||
Cost | 1,379,839 | 1,385,851 |
Less: accumulated depreciation | -861,706 | -861,656 |
Property, plant and equipment, net | 518,133 | 524,195 |
Goodwill, net | 11,390 | 11,502 |
Other intangible assets, net | 20,092 | 20,803 |
Long-term investments (Note 3) | 20,134 | 20,217 |
Other non-current assets | 9,669 | 9,741 |
Total assets | 1,158,349 | 1,162,014 |
Current Liabilities: | ||
Current maturities of long-term debt (Note 12) | 27,799 | 27,034 |
Accounts payable | 142,101 | 156,983 |
Accrued liabilities | 74,903 | 65,496 |
Total current liabilities | 244,803 | 249,513 |
Deferred income taxes | 15,754 | 15,804 |
Long-term debt, less current maturities (Note 12) | 255,937 | 246,897 |
Other non-current liabilities | 111,377 | 112,856 |
Commitments and Contingencies (Note 7) | ||
Equity: | ||
Common stock, $1 par value; authorized 30,000,000 shares; issued 25,666,380 shares in 2015 and 25,640,090 shares in 2014 | 25,666 | 25,640 |
Additional paid-in capital | 140,471 | 139,573 |
Accumulated other comprehensive loss (Note 10) | -108,375 | -83,945 |
Retained earnings | 537,763 | 520,540 |
Less: Common treasury stock, at cost, 3,386,626 shares in 2015 and 3,238,321 shares in 2014 | -66,446 | -66,262 |
Total Stepan Company stockholders’ equity | 529,079 | 535,546 |
Noncontrolling interests (Note 2) | 1,399 | 1,398 |
Total equity | 530,478 | 536,944 |
Total liabilities and equity | $1,158,349 | $1,162,014 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
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 | 25,666,380 | 25,640,090 |
Treasury stock, shares | 3,386,626 | 3,238,321 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash Flows From Operating Activities | ||
Net income | $21,286 | $13,008 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 16,127 | 16,098 |
Deferred compensation | 1,577 | -248 |
Realized and unrealized gain on long-term investments | -531 | -23 |
Stock-based compensation | 798 | 226 |
Deferred income taxes | -1,261 | -1,851 |
Other non-cash items | -2,403 | 1,573 |
Changes in assets and liabilities: | ||
Receivables, net | -11,546 | -30,013 |
Inventories | 4,969 | -13,245 |
Other current assets | -1,703 | 646 |
Accounts payable and accrued liabilities | 6,653 | 6,291 |
Pension liabilities | 111 | -466 |
Environmental and legal liabilities | 90 | -357 |
Deferred revenues | -195 | -183 |
Excess tax benefit from stock options and awards | -120 | -414 |
Net Cash Provided By (Used) In Operating Activities | 33,852 | -8,958 |
Cash Flows From Investing Activities | ||
Expenditures for property, plant and equipment | -28,295 | -20,503 |
Proceeds from sale of product line (Note 14) | 3,262 | |
Sale of mutual funds | 782 | 738 |
Other, net | -855 | -3,362 |
Net Cash Used In Investing Activities | -25,106 | -23,127 |
Cash Flows From Financing Activities | ||
Revolving debt and bank overdrafts, net | 14,241 | -311 |
Other debt repayments | -2,063 | -688 |
Dividends paid | -4,047 | -3,800 |
Company stock repurchased | -430 | |
Stock option exercises | 167 | 904 |
Excess tax benefit from stock options and awards | 120 | 414 |
Other, net | -275 | -100 |
Net Cash Provided By (Used In) Financing Activities | 8,143 | -4,011 |
Effect of Exchange Rate Changes on Cash | -4,796 | -531 |
Net Increase (Decrease) in Cash and Cash Equivalents | 12,093 | -36,627 |
Cash and Cash Equivalents at Beginning of Period | 85,215 | 133,347 |
Cash and Cash Equivalents at End of Period | 97,308 | 96,720 |
Supplemental Cash Flow Information | ||
Cash (refunds) payments of income taxes, net | -2,920 | 2,790 |
Cash payments of interest | $435 | $463 |
Condensed_Consolidated_Financi
Condensed Consolidated Financial Statements | 3 Months Ended | |
Mar. 31, 2015 | ||
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 (US GAAP) 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 March 31, 2015, and its results of operations and cash flows for the three months ended March 31, 2015 and 2014, 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 2014 Form 10-K. | ||
Reconciliations_of_Equity
Reconciliations of Equity | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Equity [Abstract] | |||||||||||||
Reconciliations of Equity | 2 | RECONCILIATIONS OF EQUITY | |||||||||||
Below are reconciliations of total equity, Company equity and equity attributable to noncontrolling interests for the three months ended March 31, 2015 and 2014: | |||||||||||||
Stepan | Noncontrolling | ||||||||||||
Company | Interest | ||||||||||||
(In thousands) | Total Equity | Equity | Equity (3) | ||||||||||
Balance at January 1, 2015 | $ | 536,944 | $ | 535,546 | $ | 1,398 | |||||||
Net income | 21,286 | 21,270 | 16 | ||||||||||
Dividends | (4,047 | ) | (4,047 | ) | — | ||||||||
Common stock purchases (1) | (273 | ) | (273 | ) | — | ||||||||
Stock option exercises | 167 | 167 | — | ||||||||||
Defined benefit pension adjustments, net of tax | 749 | 749 | — | ||||||||||
Translation adjustments | (25,152 | ) | (25,137 | ) | (15 | ) | |||||||
Derivative instrument activity, net of tax | (42 | ) | (42 | ) | — | ||||||||
Other (2) | 846 | 846 | — | ||||||||||
Balance at March 31, 2015 | $ | 530,478 | $ | 529,079 | $ | 1,399 | |||||||
Stepan | Noncontrolling | ||||||||||||
Company | Interest | ||||||||||||
(In thousands) | Total Equity | Equity | Equity (3) | ||||||||||
Balance at January 1, 2014 | $ | 553,741 | $ | 552,286 | $ | 1,455 | |||||||
Net income | 13,008 | 13,018 | (10 | ) | |||||||||
Dividends | (3,800 | ) | (3,800 | ) | — | ||||||||
Common stock purchases (1) | (531 | ) | (531 | ) | — | ||||||||
Stock option exercises | 904 | 904 | — | ||||||||||
Defined benefit pension adjustments, net of tax | 410 | 410 | — | ||||||||||
Translation adjustments | 94 | 117 | (23 | ) | |||||||||
Derivative instrument activity, net of tax | 3 | 3 | — | ||||||||||
Other (2) | 466 | 466 | — | ||||||||||
Balance at March 31, 2014 | $ | 564,295 | $ | 562,873 | $ | 1,422 | |||||||
-1 | Includes the value of Company shares purchased in the open market and 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 | Reflects the noncontrolling interest in the Company’s China joint venture. | ||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value Measurements | 3 | FAIR VALUE MEASUREMENTS | |||||||||||||||
The following describe the financial instruments held by the Company at March 31, 2015, and December 31, 2014, 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 the financial instrument descriptions for the reported fair values of derivative assets and liabilities. | |||||||||||||||||
Long-term investments | |||||||||||||||||
Long-term investments are the mutual fund assets the Company holds 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 9). 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 established by the Financial Accounting Standards Board (FASB). 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 the 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 March 31, 2015, and December 31, 2014, the fair value of debt and the related carrying values, including current maturities, were as follows: | |||||||||||||||||
(In thousands) | 31-Mar-15 | 31-Dec-14 | |||||||||||||||
Fair value | $ | 298,655 | $ | 285,441 | |||||||||||||
Carrying value | 283,736 | 273,931 | |||||||||||||||
The following tables present financial assets and liabilities measured on a recurring basis at fair value as of March 31, 2015, and December 31, 2014, and the level within the fair value hierarchy in which the fair value measurements fall: | |||||||||||||||||
March | |||||||||||||||||
(In thousands) | 2015 | Level 1 | Level 2 | Level 3 | |||||||||||||
Mutual fund assets | $ | 20,134 | $ | 20,134 | $ | — | $ | — | |||||||||
Derivative assets: | |||||||||||||||||
Foreign currency contracts | 131 | — | 131 | — | |||||||||||||
Total assets at fair value | $ | 20,265 | $ | 20,134 | $ | 131 | $ | — | |||||||||
Derivative liabilities: | |||||||||||||||||
Foreign currency contracts | 142 | — | 142 | — | |||||||||||||
Interest rate contracts | 60 | — | 60 | — | |||||||||||||
Total liabilities at fair value | $ | 202 | $ | — | $ | 202 | $ | — | |||||||||
December | |||||||||||||||||
(In thousands) | 2014 | Level 1 | Level 2 | Level 3 | |||||||||||||
Mutual fund assets | $ | 20,217 | $ | 20,217 | $ | — | $ | — | |||||||||
Derivative assets: | |||||||||||||||||
Foreign currency contracts | 73 | — | 73 | — | |||||||||||||
Total assets at fair value | $ | 20,290 | $ | 20,217 | $ | 73 | $ | — | |||||||||
Derivative liabilities: | |||||||||||||||||
Foreign currency contracts | $ | 628 | $ | — | $ | 628 | $ | — | |||||||||
Derivative_Instruments
Derivative Instruments | 3 Months Ended | |
Mar. 31, 2015 | ||
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. The Company uses these contracts to manage its exposure to exchange rate fluctuations on certain Company subsidiary cash, 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 asset and liability balances into the applicable functional currencies. At March 31, 2015, and December 31, 2014, the Company had open forward foreign currency exchange contracts, with settlement dates of about one month, to buy or sell foreign currencies with U.S. dollar equivalent amounts of $44,228,000 and $51,623,000, respectively. | ||
The Company is exposed to volatility in short-term interest rates and mitigates certain portions of that risk by using interest rate swaps. The interest rate swaps are recognized on the balance sheet as either an asset or a liability measured at fair value. The Company held interest rate swap contracts with notional values of $4,139,000 at March 31, 2015, which are designated as cash flow hedges. At December 31, 2014, the Company held no significant interest rate swap contracts. Period-to-period changes in the fair value 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 is settled, the corresponding gain or loss is reclassified out of accumulated other comprehensive income (AOCI) into earnings in that settlement period. The latest date through which the Company expects to hedge its exposure to the volatility of short-term interest rates is December 1, 2021. | ||
The fair values of the derivative instruments held by the Company on March 31, 2015, and December 31, 2014, and derivative instrument gains and losses for the three-month periods ending March 31, 2015 and 2014, were immaterial. For amounts reclassified out of AOCI into earnings for the three month periods ended March 31, 2015 and 2014, see Note 10. |
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||||||||
Stock-Based Compensation | 5 | STOCK-BASED COMPENSATION | |||||||
On March 31, 2015 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 expense recorded for all stock options, stock awards and SARs was as follows: | |||||||||
(In thousands) | |||||||||
Three Months Ended March 31 | |||||||||
2015 | 2014 | ||||||||
$ | 798 | $ | 226 | ||||||
During the first quarter of 2014, management assessed that the profitability performance targets on which the compensation expenses for stock awards vesting on December 31, 2014, were based would not be achieved. Consequently, the resulting adjustment lowered the overall stock-based compensation expense for the three months ended March 31, 2014. | |||||||||
Unrecognized compensation costs for stock options, stock awards and SARs were as follows: | |||||||||
(In thousands) | 31-Mar-15 | 31-Dec-14 | |||||||
Stock options | $ | 1,668 | $ | 774 | |||||
Stock awards | 3,728 | 1,365 | |||||||
SARs | 3,015 | 693 | |||||||
The increases in unrecognized compensation costs for stock options, stock awards and SARs reflected the first quarter 2015 grants of: | |||||||||
Shares | |||||||||
Stock options | 82,969 | ||||||||
Stock awards | 73,028 | ||||||||
SARs | 182,417 | ||||||||
The unrecognized compensation costs at March 31, 2015, are expected to be recognized over weighted-average periods of 1.6 years, 2.5 years and 1.7 years for stock options, stock awards and SARs, respectively. |
Inventories
Inventories | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventories | 6 | INVENTORIES | |||||||
The composition of inventories was as follows: | |||||||||
(In thousands) | 31-Mar-15 | 31-Dec-14 | |||||||
Finished products | $ | 120,166 | $ | 126,157 | |||||
Raw materials | 52,002 | 57,076 | |||||||
Total inventories | $ | 172,168 | $ | 183,233 | |||||
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 $32,825,000 and $34,340,000 higher than reported at March 31, 2015, and December 31, 2014, respectively. |
Contingencies
Contingencies | 3 Months Ended | |
Mar. 31, 2015 | ||
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 cleanup costs have been or may be incurred under CERCLA and similar state 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. | ||
As of March 31, 2015, the Company estimated a range of possible environmental and legal losses of $22.1 million to $41.4 million. At March 31, 2015, and December 31, 2014, 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 $22.1 million and $22.0 million, respectively. During the first three months of 2015 and 2014, cash outlays related to legal and environmental matters approximated $0.3 million. | ||
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 March 31, 2015: | ||
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 on September 24, 2014, USEPA issued its Record of Decision (“ROD”) for chemically-contaminated soil. Based on the most current information available, the Company recorded a $0.6 million increase in its remediation liability for this site in the three months ended March 31, 2015. The Company believes its recorded liability represents its best estimate of the cost of remediation for the Maywood site. The best estimate of the cost of remediation for the Maywood site could change as the Company continues to hold discussions with USEPA, as the design of the remedial action progresses or if other PRPs are identified. The ultimate amount for which the Company is liable could differ from the Company’s current recorded liability. | ||
In April 2015, the Company agreed to enter into an Administrative Settlement Agreement and Administrative Order on Consent with USEPA for performance of certain investigative and design work for chemically-contaminated soil. Based on the Company’s review and analysis of this order, no changes to the Company’s current recorded liability for claims associated with soil remediation of chemical contamination were required. | ||
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 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 fourth 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 its recorded liability for the claims related to this site is adequate. 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 Delaware (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 examination of un-cashed payroll and accounts payable checks has been completed, and no significant adjustments to the Company’s unclaimed property liability were required. The examination of accounts receivable credits is ongoing. On the basis of currently available information, the Company believes its liability for unclaimed property is adequate. Because the audit is not final, the Company’s ultimate actual obligation could differ from the recorded liability. | ||
Customer Claims | ||
From time to time in the normal course of business, customers make claims against the Company for issues such as product performance and liability, contract disputes, delivery errors and other various concerns. Frequently, such claims are subject to extensive investigation, discussion and negotiation prior to settlement or resolution. On the basis of the most current information available, the Company’s liability for such claims was $4,016,000 at March 31, 2015, compared to $3,475,000 at December 31, 2014. Investigations and discussions with the affected customers are ongoing. Therefore, the actual amounts ultimately paid, if any, to settle the claims could differ significantly from the amounts currently recorded. | ||
Mexico Value-Added Tax | ||
During an examination of the Company’s 2009 and 2010 Mexico subsidiary financial records, local tax authority auditors determined that the Company’s treatment of value-added tax (VAT) for purchase transactions with a certain vendor was incorrect. As a result, the tax authorities concluded that the Company owed past VAT from 2009 -2010 along with assessed inflation, penalty and interest charges. Consequently, the Company recorded aliability and corresponding income statement charge for the VAT inflation, penalty and interest charges. The liability included the 2009 – 2010 assessment of inflation, penalty and interest charges plus an estimated amount for the potential exposure for 2011 – 2014. No charge was recorded for the past unpaid VAT because the Company believes the amount will be recoverable through the normal VAT process. Depending on negotiations with Mexico’s tax authorities, the accuracy of the estimates for 2011 - 2014 and the actual amount of the past VAT that is recovered by the Company, the actual settlement could differ from the current recorded liability. | ||
Postretirement_Benefit_Plans
Postretirement Benefit Plans | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
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 | UNITED KINGDOM | ||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||
31-Mar | 31-Mar | ||||||||||||||||
(In thousands) | 2015 | 2014 | 2015 | 2014 | |||||||||||||
Interest cost | $ | 1,701 | $ | 1,723 | $ | 195 | $ | 243 | |||||||||
Expected return on plan assets | (2,393 | ) | (2,378 | ) | (262 | ) | (328 | ) | |||||||||
Amortization of net actuarial loss | 1,149 | 662 | 45 | — | |||||||||||||
Net periodic benefit cost (income) | $ | 457 | $ | 7 | $ | (22 | ) | $ | (85 | ) | |||||||
Employer Contributions | |||||||||||||||||
U.S. Plans | |||||||||||||||||
As a result of pension funding relief provisions included in the Highway and Transportation Funding Act of 2014, the Company expects to make no 2015 contributions to the funded U.S. qualified defined benefit plans. Approximately, $185,000 is expected to be paid related to the unfunded unqualified plans. As of March 31, 2015, $141,000 had been paid related to the non-qualified plans. | |||||||||||||||||
U.K. Plan | |||||||||||||||||
The Company’s United Kingdom subsidiary expects to contribute approximately $551,000 to its defined benefit pension plan in 2015. As of March 31, 2015, $216,000 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 | |||||||||||||||||
31-Mar | |||||||||||||||||
(In thousands) | 2015 | 2014 | |||||||||||||||
Retirement savings plans | $ | 1,184 | $ | 1,131 | |||||||||||||
Profit sharing plan | 980 | 764 | |||||||||||||||
Total defined contribution expense | $ | 2,164 | $ | 1,895 | |||||||||||||
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 consolidated 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 March 31, 2015, the balance of the trust assets was $1,813,000, 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 | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Earnings Per Share | 9 | EARNINGS PER SHARE | |||||||
Below are the computations of basic and diluted earnings per share for the three months ended March 31, 2015 and 2014: | |||||||||
Three Months Ended | |||||||||
31-Mar | |||||||||
(In thousands, except per share amounts) | 2015 | 2014 | |||||||
Computation of Basic Earnings per Share | |||||||||
Net income attributable to Stepan Company | $ | 21,270 | $ | 13,018 | |||||
Weighted-average number of shares outstanding | 22,718 | 22,773 | |||||||
Basic earnings per share | $ | 0.94 | $ | 0.57 | |||||
Computation of Diluted Earnings per Share | |||||||||
Net income attributable to Stepan Company | $ | 21,270 | $ | 13,018 | |||||
Weighted-average number of shares outstanding | 22,718 | 22,773 | |||||||
Add weighted-average net shares issuable from assumed exercise of options (under treasury stock method) (1) | 104 | 182 | |||||||
Add weighted-average net shares related to unvested stock awards (under treasury stock method) | 5 | 9 | |||||||
Weighted-average shares applicable to diluted earnings | 22,827 | 22,964 | |||||||
Diluted earnings per share | $ | 0.93 | $ | 0.57 | |||||
-1 | Options to purchase 226,098 and 47,639 shares of Company common stock were excluded from the computation of diluted earnings per share for the three months ended March 31, 2015 and March 31, 2014, respectively. 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) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Equity [Abstract] | |||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | 10 | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||||||||||||||
The changes in the Company’s accumulated other comprehensive income (loss) (AOCI) by component (net of income taxes) for the three-month periods ended March 31, 2014 and 2015, are presented below: | |||||||||||||||||
Foreign | Defined | ||||||||||||||||
Currency | Benefit | Cash Flow | |||||||||||||||
Translation | Pension Plan | Hedge | |||||||||||||||
(In thousands) | Adjustments | Adjustments | Adjustments | Total | |||||||||||||
Balance at December 31, 2013 | $ | (10,971 | ) | $ | (18,672 | ) | $ | 115 | $ | (29,528 | ) | ||||||
Other comprehensive income before reclassifications | 117 | — | — | 117 | |||||||||||||
Amounts reclassified from AOCI | — | 410 | 3 | 413 | |||||||||||||
Net current-period other comprehensive income | 117 | 410 | 3 | 530 | |||||||||||||
Balance at March 31, 2014 | $ | (10,854 | ) | $ | (18,262 | ) | $ | 118 | $ | (28,998 | ) | ||||||
Balance at December 31, 2014 | $ | (42,914 | ) | $ | (41,149 | ) | $ | 118 | $ | (83,945 | ) | ||||||
Other comprehensive income before reclassifications | (25,137 | ) | — | (43 | ) | (25,180 | ) | ||||||||||
Amounts reclassified from AOCI | — | 749 | 1 | 750 | |||||||||||||
Net current-period other comprehensive income | (25,137 | ) | 749 | (42 | ) | (24,430 | ) | ||||||||||
Balance at March 31, 2015 | $ | (68,051 | ) | $ | (40,400 | ) | $ | 76 | $ | (108,375 | ) | ||||||
Information regarding the reclassifications out of AOCI for the three month periods ended March 31, 2015 and 2014, is displayed below: | |||||||||||||||||
Affected Line Item in | |||||||||||||||||
Amount Reclassified | Consolidated Statements | ||||||||||||||||
(In thousands) | from AOCI (a) | of Income | |||||||||||||||
AOCI Components | 2015 | 2014 | |||||||||||||||
Amortization of defined benefit pension actuarial losses | $ | (1,194 | ) | $ | (662 | ) | (b) | ||||||||||
445 | 252 | Tax benefit | |||||||||||||||
$ | (749 | ) | $ | (410 | ) | Net of tax | |||||||||||
Gains and losses on cash flow hedges: | |||||||||||||||||
Interest rate contracts | $ | (5 | ) | $ | (7 | ) | Interest, net | ||||||||||
Foreign exchange contracts | 2 | 2 | Cost of sales | ||||||||||||||
(3 | ) | (5 | ) | Total before tax | |||||||||||||
2 | 2 | Tax benefit | |||||||||||||||
$ | (1 | ) | $ | (3 | ) | Net of tax | |||||||||||
Total reclassifications for the period | $ | (750 | ) | $ | (413 | ) | 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 | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
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 months ended March 31, 2015 and 2014, were as follows: | |||||||||
Three Months Ended | |||||||||
31-Mar | |||||||||
(In thousands) | 2015 | 2014 | |||||||
Segment Net Sales | |||||||||
Surfactants | $ | 330,551 | $ | 335,710 | |||||
Polymers | 109,364 | 119,107 | |||||||
Specialty Products | 20,536 | 22,625 | |||||||
Total | $ | 460,451 | $ | 477,442 | |||||
Segment operating income and reconciliations of segment operating income to consolidated income before income taxes for the three months ended March 31, 2015 and 2014, are summarized below: | |||||||||
Three Months Ended | |||||||||
31-Mar | |||||||||
(In thousands) | 2015 | 2014 | |||||||
Segment Operating Income | |||||||||
Surfactants | $ | 33,764 | $ | 18,338 | |||||
Polymers | 14,785 | 10,826 | |||||||
Specialty Products | 2,244 | 4,021 | |||||||
Segment operating income | 50,793 | 33,185 | |||||||
Unallocated corporate expenses (1) | (15,615 | ) | (10,662 | ) | |||||
Consolidated operating income | 35,178 | 22,523 | |||||||
Interest expense, net | (4,054 | ) | (2,957 | ) | |||||
Loss from equity in joint ventures | (1,240 | ) | (1,451 | ) | |||||
Other, net | 652 | (26 | ) | ||||||
Consolidated income before income taxes | $ | 30,536 | $ | 18,089 | |||||
-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 | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Debt Disclosure [Abstract] | |||||||||||
Debt | 12 | DEBT | |||||||||
At March 31, 2015, and December 31, 2014, debt comprised the following: | |||||||||||
(In thousands) | Maturity Dates | 31-Mar-15 | December 31, 2014 | ||||||||
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% | 2015-2018 | 22,857 | 22,857 | ||||||||
6.86% | 2015 | 4,284 | 4,284 | ||||||||
Unsecured U.S. bank debt | 2019 | 30,000 | 20,000 | ||||||||
Debt of foreign subsidiaries | |||||||||||
Unsecured bank debt, foreign currency | 2015 | 14,388 | 12,043 | ||||||||
Unsecured bank term loan, foreign currency | 2021 | 4,139 | 4,840 | ||||||||
Secured bank term loan, foreign currency | 2015 | 537 | 2,723 | ||||||||
Secured bank debt, foreign currency | 2015 | 1,985 | 1,638 | ||||||||
Unsecured bank debt, U.S. dollars | 2015 | 546 | 546 | ||||||||
Total debt | $ | 283,736 | $ | 273,931 | |||||||
Less current maturities | 27,799 | 27,034 | |||||||||
Long-term debt | $ | 255,937 | $ | 246,897 | |||||||
The Company has a committed $125,000,000 multi-currency revolving credit agreement that expires in July 2019. 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 March 31, 2015, the Company had outstanding letters of credit totaling $2,952,000 and outstanding borrowing of $30,000,000 under this agreement. There was $92,048,000 available under the revolving credit agreement as of March 31, 2015. | |||||||||||
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 $98,361,000 and $88,684,000 at March 31, 2015 and December 31, 2014, respectively. | |||||||||||
Other_Net
Other, Net | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Other Income And Expenses [Abstract] | |||||||||
Other, Net | 13 | OTHER, NET | |||||||
Other, net in the consolidated statements of income included the following: | |||||||||
Three Months Ended | |||||||||
31-Mar | |||||||||
(In thousands) | 2015 | 2014 | |||||||
Foreign exchange loss | $ | (2 | ) | $ | (205 | ) | |||
Investment income | 123 | 156 | |||||||
Realized and unrealized gain on investments | 531 | 23 | |||||||
Other, net | $ | 652 | $ | (26 | ) | ||||
Sale_of_Product_Line
Sale of Product Line | 3 Months Ended | |
Mar. 31, 2015 | ||
Sale Of Product Line [Abstract] | ||
Sale of Product Line | 14 | SALE OF PRODUCT LINE |
In January 2015, the Company sold its specialty polyurethane systems product line (kits) to J6 Polymers, LLC (J6) for cash of $3,262,000. Kits were part of the Company’s Polymers segment and accounted for approximately $2,800,000 of the Company’s 2014 net sales. The sale of kits included inventory as well as customer and supplier lists, formulations, manufacturing procedures and all other intellectual property associated with the manufacturing and selling of kits. As a result of the sale, the Company recognized a pretax gain of $2,862,000 for the three-month period ending March 31, 2015. The gain was attributed to the Polymer segment. Prior to the sale, kits were produced by the Company and by third-party toll manufacturers on the Company’s behalf. The products manufactured by the Company will continued to be produced for J6 during a transition period. J6 is a business wholly-owned and operated by members of the immediate family of Robert J. Wood, a former Company executive who retired from the Company in April 2014. Mr. Wood is a managing member of J6. | ||
Business_Restructuring
Business Restructuring | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Restructuring And Related Activities [Abstract] | |||||
Business Restructuring | 15 | BUSINESS RESTRUCTURING | |||
2014 Restructuring | |||||
In the fourth quarter of 2014, a restructuring plan was approved that affected certain Company functions, principally the research and development function and to a lesser extent product safety and compliance and plant site accounting functions (primarily affecting the Surfactants segment). The objective of the plan was to better align staffing resources with the needs of the Company’s diversification and growth initiatives. In implementing the plan, management offered a voluntary retirement incentive to employees of the affected functions. By December 31, 2014, 13 employees accepted the voluntary termination incentive. As a result, the Company recognized a $1,722,000 charge against income in the fourth quarter ended December 31, 2014. Most of the incentive pay was disbursed in the first quarter of 2015. The remainder of the liability is anticipated to be settled in the second quarter of 2015. Although the Company may realize some short-term cost savings from the action, the restructuring was not considered a cost savings initiative but rather an opportunity to create some staffing flexibility to reposition roles to meet changing business needs. Other costs for the restructuring were not material. | |||||
Below is a reconciliation of the beginning and ending balances of the restructuring liability: | |||||
Severance | |||||
(In thousands) | Expense | ||||
Restructuring liability at December 31, 2014 | $ | 1,722 | |||
Amounts paid | (1,435 | ) | |||
Foreign currency translation | (23 | ) | |||
Restructuring liability at March 31, 2015 | $ | 264 | |||
2013 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. Other restructuring costs for this plan were not material. Following is a reconciliation of the beginning and ending balances of the restructuring liability: | |||||
Severance | |||||
(In thousands) | Expense | ||||
Restructuring liability at December 31, 2013 | $ | 1,040 | |||
Amounts paid in 2014 | (420 | ) | |||
Foreign currency translation in 2014 | (57 | ) | |||
Restructuring liability at December 31, 2014 | $ | 563 | |||
Amounts paid | (338 | ) | |||
Foreign currency translation | (39 | ) | |||
Restructuring liability at March 31, 2015 | $ | 186 | |||
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. For the three months ended March 31, 2014, the Company recognized $907,000 of accelerated depreciation resulting from the reduction of asset useful lives. The depreciation expense was included in the cost of sales line of the consolidated statement of income. | |||||
Acquisition_Agreement
Acquisition Agreement | 3 Months Ended | |
Mar. 31, 2015 | ||
Business Combinations [Abstract] | ||
Acquisition Agreement | 16 | 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 second quarter of 2015. | ||
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 3 Months Ended | |
Mar. 31, 2015 | ||
Accounting Changes And Error Corrections [Abstract] | ||
Recent Accounting Pronouncements | 17 | RECENT ACCOUNTING PRONOUNCEMENTS |
In April 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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. This ASU did not 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 (although on April 1, 2015, the FASB voted to propose to defer the effective date for public entities to annual periods beginning after December, 15, 2017). An entity may use either a full retrospective or a modified retrospective approach to adopt the requirements of the new standard. The Company continues 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. | ||
In January 2015, the FASB issued ASU No. 2015-01, Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items, which amends Subtopic 225-20, Income Statement – Extraordinary and Unusual Items, of the Accounting Standards Codification. The update, which is part of FASB’s initiative to reduce complexity of accounting standards, eliminates the US GAAP concept of extraordinary items. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively or retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. This ASU is not expected to have an effect on the Company’s financial position, results of operations or cash flows. | ||
In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810) Amendments to the Consolidation Analysis. The amendments in this update affect reporting entities that are required to evaluate whether they should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. Specifically, the amendments: 1) modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIEs) or voting interest entities; 2) eliminate the presumption that a general partner should consolidate a limited partnership; 3) affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; and 4) provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with certain Investment Company Act of 1940 requirements for registered money market funds. The amendments in ASU No. 2015-02 are effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments in this update using a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption. A reporting entity also may apply the amendments retrospectively. Early adoption is permitted. Under the assumption that the Company’s organizational structure remains as it is currently, adoption of ASU No. 2015-02 is not expected to have an effect on the Company’s financial position, results of operations or cash flows. | ||
Recent_Accounting_Pronouncemen1
Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent Accounting Pronouncements | In April 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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. This ASU did not 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 (although on April 1, 2015, the FASB voted to propose to defer the effective date for public entities to annual periods beginning after December, 15, 2017). An entity may use either a full retrospective or a modified retrospective approach to adopt the requirements of the new standard. The Company continues 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. | |
In January 2015, the FASB issued ASU No. 2015-01, Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items, which amends Subtopic 225-20, Income Statement – Extraordinary and Unusual Items, of the Accounting Standards Codification. The update, which is part of FASB’s initiative to reduce complexity of accounting standards, eliminates the US GAAP concept of extraordinary items. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively or retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. This ASU is not expected to have an effect on the Company’s financial position, results of operations or cash flows. | |
In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810) Amendments to the Consolidation Analysis. The amendments in this update affect reporting entities that are required to evaluate whether they should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. Specifically, the amendments: 1) modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIEs) or voting interest entities; 2) eliminate the presumption that a general partner should consolidate a limited partnership; 3) affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; and 4) provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with certain Investment Company Act of 1940 requirements for registered money market funds. The amendments in ASU No. 2015-02 are effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments in this update using a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption. A reporting entity also may apply the amendments retrospectively. Early adoption is permitted. Under the assumption that the Company’s organizational structure remains as it is currently, adoption of ASU No. 2015-02 is not expected to have an effect on the Company’s financial position, results of operations or cash flows. |
Reconciliations_of_Equity_Tabl
Reconciliations of Equity (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Equity [Abstract] | |||||||||||||
Reconciliations of Total Equity | Below are reconciliations of total equity, Company equity and equity attributable to noncontrolling interests for the three months ended March 31, 2015 and 2014: | ||||||||||||
Stepan | Noncontrolling | ||||||||||||
Company | Interest | ||||||||||||
(In thousands) | Total Equity | Equity | Equity (3) | ||||||||||
Balance at January 1, 2015 | $ | 536,944 | $ | 535,546 | $ | 1,398 | |||||||
Net income | 21,286 | 21,270 | 16 | ||||||||||
Dividends | (4,047 | ) | (4,047 | ) | — | ||||||||
Common stock purchases (1) | (273 | ) | (273 | ) | — | ||||||||
Stock option exercises | 167 | 167 | — | ||||||||||
Defined benefit pension adjustments, net of tax | 749 | 749 | — | ||||||||||
Translation adjustments | (25,152 | ) | (25,137 | ) | (15 | ) | |||||||
Derivative instrument activity, net of tax | (42 | ) | (42 | ) | — | ||||||||
Other (2) | 846 | 846 | — | ||||||||||
Balance at March 31, 2015 | $ | 530,478 | $ | 529,079 | $ | 1,399 | |||||||
Stepan | Noncontrolling | ||||||||||||
Company | Interest | ||||||||||||
(In thousands) | Total Equity | Equity | Equity (3) | ||||||||||
Balance at January 1, 2014 | $ | 553,741 | $ | 552,286 | $ | 1,455 | |||||||
Net income | 13,008 | 13,018 | (10 | ) | |||||||||
Dividends | (3,800 | ) | (3,800 | ) | — | ||||||||
Common stock purchases (1) | (531 | ) | (531 | ) | — | ||||||||
Stock option exercises | 904 | 904 | — | ||||||||||
Defined benefit pension adjustments, net of tax | 410 | 410 | — | ||||||||||
Translation adjustments | 94 | 117 | (23 | ) | |||||||||
Derivative instrument activity, net of tax | 3 | 3 | — | ||||||||||
Other (2) | 466 | 466 | — | ||||||||||
Balance at March 31, 2014 | $ | 564,295 | $ | 562,873 | $ | 1,422 | |||||||
-1 | Includes the value of Company shares purchased in the open market and 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 | Reflects the noncontrolling interest in the Company’s China joint venture. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Values and Related Carrying Values of Debt | At March 31, 2015, and December 31, 2014, the fair value of debt and the related carrying values, including current maturities, were as follows: | ||||||||||||||||
(In thousands) | 31-Mar-15 | 31-Dec-14 | |||||||||||||||
Fair value | $ | 298,655 | $ | 285,441 | |||||||||||||
Carrying value | 283,736 | 273,931 | |||||||||||||||
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 March 31, 2015, and December 31, 2014, and the level within the fair value hierarchy in which the fair value measurements fall: | ||||||||||||||||
March | |||||||||||||||||
(In thousands) | 2015 | Level 1 | Level 2 | Level 3 | |||||||||||||
Mutual fund assets | $ | 20,134 | $ | 20,134 | $ | — | $ | — | |||||||||
Derivative assets: | |||||||||||||||||
Foreign currency contracts | 131 | — | 131 | — | |||||||||||||
Total assets at fair value | $ | 20,265 | $ | 20,134 | $ | 131 | $ | — | |||||||||
Derivative liabilities: | |||||||||||||||||
Foreign currency contracts | 142 | — | 142 | — | |||||||||||||
Interest rate contracts | 60 | — | 60 | — | |||||||||||||
Total liabilities at fair value | $ | 202 | $ | — | $ | 202 | $ | — | |||||||||
December | |||||||||||||||||
(In thousands) | 2014 | Level 1 | Level 2 | Level 3 | |||||||||||||
Mutual fund assets | $ | 20,217 | $ | 20,217 | $ | — | $ | — | |||||||||
Derivative assets: | |||||||||||||||||
Foreign currency contracts | 73 | — | 73 | — | |||||||||||||
Total assets at fair value | $ | 20,290 | $ | 20,217 | $ | 73 | $ | — | |||||||||
Derivative liabilities: | |||||||||||||||||
Foreign currency contracts | $ | 628 | $ | — | $ | 628 | $ | — | |||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||||||||
Compensation Expense Recorded for All Stock Options, Stock Awards and SARs | Compensation expense recorded for all stock options, stock awards and SARs was as follows: | ||||||||
(In thousands) | |||||||||
Three Months Ended March 31 | |||||||||
2015 | 2014 | ||||||||
$ | 798 | $ | 226 | ||||||
Unrecognized Compensation Costs for Stock Options, Stock Awards and SARs | Unrecognized compensation costs for stock options, stock awards and SARs were as follows: | ||||||||
(In thousands) | 31-Mar-15 | 31-Dec-14 | |||||||
Stock options | $ | 1,668 | $ | 774 | |||||
Stock awards | 3,728 | 1,365 | |||||||
SARs | 3,015 | 693 | |||||||
Share Based Payment Awards Granted in Period | The increases in unrecognized compensation costs for stock options, stock awards and SARs reflected the first quarter 2015 grants of: | ||||||||
Shares | |||||||||
Stock options | 82,969 | ||||||||
Stock awards | 73,028 | ||||||||
SARs | 182,417 | ||||||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Composition of Inventories | The composition of inventories was as follows: | ||||||||
(In thousands) | 31-Mar-15 | 31-Dec-14 | |||||||
Finished products | $ | 120,166 | $ | 126,157 | |||||
Raw materials | 52,002 | 57,076 | |||||||
Total inventories | $ | 172,168 | $ | 183,233 | |||||
Postretirement_Benefit_Plans_T
Postretirement Benefit Plans (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Compensation And Retirement Disclosure [Abstract] | |||||||||||||||||
Components of Net Periodic Benefit Cost | Components of Net Periodic Benefit Cost | ||||||||||||||||
UNITED STATES | UNITED KINGDOM | ||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||
31-Mar | 31-Mar | ||||||||||||||||
(In thousands) | 2015 | 2014 | 2015 | 2014 | |||||||||||||
Interest cost | $ | 1,701 | $ | 1,723 | $ | 195 | $ | 243 | |||||||||
Expected return on plan assets | (2,393 | ) | (2,378 | ) | (262 | ) | (328 | ) | |||||||||
Amortization of net actuarial loss | 1,149 | 662 | 45 | — | |||||||||||||
Net periodic benefit cost (income) | $ | 457 | $ | 7 | $ | (22 | ) | $ | (85 | ) | |||||||
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 | |||||||||||||||||
31-Mar | |||||||||||||||||
(In thousands) | 2015 | 2014 | |||||||||||||||
Retirement savings plans | $ | 1,184 | $ | 1,131 | |||||||||||||
Profit sharing plan | 980 | 764 | |||||||||||||||
Total defined contribution expense | $ | 2,164 | $ | 1,895 | |||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Computation of Basic and Diluted Earnings Per Share | Below are the computations of basic and diluted earnings per share for the three months ended March 31, 2015 and 2014: | ||||||||
Three Months Ended | |||||||||
31-Mar | |||||||||
(In thousands, except per share amounts) | 2015 | 2014 | |||||||
Computation of Basic Earnings per Share | |||||||||
Net income attributable to Stepan Company | $ | 21,270 | $ | 13,018 | |||||
Weighted-average number of shares outstanding | 22,718 | 22,773 | |||||||
Basic earnings per share | $ | 0.94 | $ | 0.57 | |||||
Computation of Diluted Earnings per Share | |||||||||
Net income attributable to Stepan Company | $ | 21,270 | $ | 13,018 | |||||
Weighted-average number of shares outstanding | 22,718 | 22,773 | |||||||
Add weighted-average net shares issuable from assumed exercise of options (under treasury stock method) (1) | 104 | 182 | |||||||
Add weighted-average net shares related to unvested stock awards (under treasury stock method) | 5 | 9 | |||||||
Weighted-average shares applicable to diluted earnings | 22,827 | 22,964 | |||||||
Diluted earnings per share | $ | 0.93 | $ | 0.57 | |||||
-1 | Options to purchase 226,098 and 47,639 shares of Company common stock were excluded from the computation of diluted earnings per share for the three months ended March 31, 2015 and March 31, 2014, respectively. 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) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Equity [Abstract] | |||||||||||||||||
Summary of Changes in Accumulated Other Comprehensive Income | The changes in the Company’s accumulated other comprehensive income (loss) (AOCI) by component (net of income taxes) for the three-month periods ended March 31, 2014 and 2015, are presented below: | ||||||||||||||||
Foreign | Defined | ||||||||||||||||
Currency | Benefit | Cash Flow | |||||||||||||||
Translation | Pension Plan | Hedge | |||||||||||||||
(In thousands) | Adjustments | Adjustments | Adjustments | Total | |||||||||||||
Balance at December 31, 2013 | $ | (10,971 | ) | $ | (18,672 | ) | $ | 115 | $ | (29,528 | ) | ||||||
Other comprehensive income before reclassifications | 117 | — | — | 117 | |||||||||||||
Amounts reclassified from AOCI | — | 410 | 3 | 413 | |||||||||||||
Net current-period other comprehensive income | 117 | 410 | 3 | 530 | |||||||||||||
Balance at March 31, 2014 | $ | (10,854 | ) | $ | (18,262 | ) | $ | 118 | $ | (28,998 | ) | ||||||
Balance at December 31, 2014 | $ | (42,914 | ) | $ | (41,149 | ) | $ | 118 | $ | (83,945 | ) | ||||||
Other comprehensive income before reclassifications | (25,137 | ) | — | (43 | ) | (25,180 | ) | ||||||||||
Amounts reclassified from AOCI | — | 749 | 1 | 750 | |||||||||||||
Net current-period other comprehensive income | (25,137 | ) | 749 | (42 | ) | (24,430 | ) | ||||||||||
Balance at March 31, 2015 | $ | (68,051 | ) | $ | (40,400 | ) | $ | 76 | $ | (108,375 | ) | ||||||
Summary of Reclassifications Out of Accumulated Other Comprehensive Income | Information regarding the reclassifications out of AOCI for the three month periods ended March 31, 2015 and 2014, is displayed below: | ||||||||||||||||
Affected Line Item in | |||||||||||||||||
Amount Reclassified | Consolidated Statements | ||||||||||||||||
(In thousands) | from AOCI (a) | of Income | |||||||||||||||
AOCI Components | 2015 | 2014 | |||||||||||||||
Amortization of defined benefit pension actuarial losses | $ | (1,194 | ) | $ | (662 | ) | (b) | ||||||||||
445 | 252 | Tax benefit | |||||||||||||||
$ | (749 | ) | $ | (410 | ) | Net of tax | |||||||||||
Gains and losses on cash flow hedges: | |||||||||||||||||
Interest rate contracts | $ | (5 | ) | $ | (7 | ) | Interest, net | ||||||||||
Foreign exchange contracts | 2 | 2 | Cost of sales | ||||||||||||||
(3 | ) | (5 | ) | Total before tax | |||||||||||||
2 | 2 | Tax benefit | |||||||||||||||
$ | (1 | ) | $ | (3 | ) | Net of tax | |||||||||||
Total reclassifications for the period | $ | (750 | ) | $ | (413 | ) | 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) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Segment Reporting [Abstract] | |||||||||
Operating Segment | The Company has three reportable segments: Surfactants, Polymers and Specialty Products. Net sales by segment for the three months ended March 31, 2015 and 2014, were as follows: | ||||||||
Three Months Ended | |||||||||
31-Mar | |||||||||
(In thousands) | 2015 | 2014 | |||||||
Segment Net Sales | |||||||||
Surfactants | $ | 330,551 | $ | 335,710 | |||||
Polymers | 109,364 | 119,107 | |||||||
Specialty Products | 20,536 | 22,625 | |||||||
Total | $ | 460,451 | $ | 477,442 | |||||
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 months ended March 31, 2015 and 2014, are summarized below: | ||||||||
Three Months Ended | |||||||||
31-Mar | |||||||||
(In thousands) | 2015 | 2014 | |||||||
Segment Operating Income | |||||||||
Surfactants | $ | 33,764 | $ | 18,338 | |||||
Polymers | 14,785 | 10,826 | |||||||
Specialty Products | 2,244 | 4,021 | |||||||
Segment operating income | 50,793 | 33,185 | |||||||
Unallocated corporate expenses (1) | (15,615 | ) | (10,662 | ) | |||||
Consolidated operating income | 35,178 | 22,523 | |||||||
Interest expense, net | (4,054 | ) | (2,957 | ) | |||||
Loss from equity in joint ventures | (1,240 | ) | (1,451 | ) | |||||
Other, net | 652 | (26 | ) | ||||||
Consolidated income before income taxes | $ | 30,536 | $ | 18,089 | |||||
-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) | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Debt Disclosure [Abstract] | |||||||||||
Debt | At March 31, 2015, and December 31, 2014, debt comprised the following: | ||||||||||
(In thousands) | Maturity Dates | 31-Mar-15 | December 31, 2014 | ||||||||
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% | 2015-2018 | 22,857 | 22,857 | ||||||||
6.86% | 2015 | 4,284 | 4,284 | ||||||||
Unsecured U.S. bank debt | 2019 | 30,000 | 20,000 | ||||||||
Debt of foreign subsidiaries | |||||||||||
Unsecured bank debt, foreign currency | 2015 | 14,388 | 12,043 | ||||||||
Unsecured bank term loan, foreign currency | 2021 | 4,139 | 4,840 | ||||||||
Secured bank term loan, foreign currency | 2015 | 537 | 2,723 | ||||||||
Secured bank debt, foreign currency | 2015 | 1,985 | 1,638 | ||||||||
Unsecured bank debt, U.S. dollars | 2015 | 546 | 546 | ||||||||
Total debt | $ | 283,736 | $ | 273,931 | |||||||
Less current maturities | 27,799 | 27,034 | |||||||||
Long-term debt | $ | 255,937 | $ | 246,897 | |||||||
Other_Net_Tables
Other, Net (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
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 | |||||||||
31-Mar | |||||||||
(In thousands) | 2015 | 2014 | |||||||
Foreign exchange loss | $ | (2 | ) | $ | (205 | ) | |||
Investment income | 123 | 156 | |||||||
Realized and unrealized gain on investments | 531 | 23 | |||||||
Other, net | $ | 652 | $ | (26 | ) | ||||
Business_Restructuring_Tables
Business Restructuring (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
2014 Restructuring [Member] | |||||
Reconciliation of Restructuring Liability | Below is a reconciliation of the beginning and ending balances of the restructuring liability: | ||||
Severance | |||||
(In thousands) | Expense | ||||
Restructuring liability at December 31, 2014 | $ | 1,722 | |||
Amounts paid | (1,435 | ) | |||
Foreign currency translation | (23 | ) | |||
Restructuring liability at March 31, 2015 | $ | 264 | |||
2013 Restructuring [Member] | |||||
Reconciliation of Restructuring Liability | Following is a reconciliation of the beginning and ending balances of the restructuring liability: | ||||
Severance | |||||
(In thousands) | Expense | ||||
Restructuring liability at December 31, 2013 | $ | 1,040 | |||
Amounts paid in 2014 | (420 | ) | |||
Foreign currency translation in 2014 | (57 | ) | |||
Restructuring liability at December 31, 2014 | $ | 563 | |||
Amounts paid | (338 | ) | |||
Foreign currency translation | (39 | ) | |||
Restructuring liability at March 31, 2015 | $ | 186 | |||
Reconciliations_of_Equity_Reco
Reconciliations of Equity - Reconciliations of Total Equity (Detail) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Reconciliations of total equity | ||||
Beginning Balance | $536,944 | $553,741 | ||
Beginning Balance | 535,546 | |||
Beginning Balance | 1,398 | |||
Net income | 21,286 | 13,008 | ||
Net income | 16 | -10 | ||
Dividends | -4,047 | -3,800 | ||
Common stock purchases | -273 | [1] | -531 | [1] |
Stock option exercises | 167 | 904 | ||
Pension liability adjustment, net of tax (Note 10) | 749 | 410 | ||
Translation adjustments | -25,152 | 94 | ||
Derivative instrument activity, net of tax | -42 | 3 | ||
Other | 846 | [2] | 466 | [2] |
Ending Balance | 530,478 | 564,295 | ||
Ending Balance | 529,079 | |||
Ending Balance | 1,399 | |||
Stepan Company Equity [Member] | ||||
Reconciliations of total equity | ||||
Beginning Balance | 535,546 | 552,286 | ||
Net income | 21,270 | 13,018 | ||
Dividends | -4,047 | -3,800 | ||
Common stock purchases | -273 | [1] | -531 | [1] |
Stock option exercises | 167 | 904 | ||
Pension liability adjustment, net of tax (Note 10) | 749 | 410 | ||
Translation adjustments | -25,137 | 117 | ||
Derivative instrument activity, net of tax | -42 | 3 | ||
Other | 846 | [2] | 466 | [2] |
Ending Balance | 529,079 | 562,873 | ||
Noncontrolling Interests' Equity [Member] | ||||
Reconciliations of total equity | ||||
Beginning Balance | 1,398 | [3] | 1,455 | [3] |
Net income | 16 | [3] | -10 | [3] |
Translation adjustments | -15 | [3] | -23 | [3] |
Ending Balance | $1,399 | [3] | $1,422 | [3] |
[1] | Includes the value of Company shares purchased in the open market and 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] | Reflects the noncontrolling interest in the Company’s China joint venture. |
Fair_Value_Measurements_Fair_V
Fair Value Measurements - Fair Values and Related Carrying Values of Debt (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Debt Instrument Fair Value Carrying Value [Abstract] | ||
Carrying value | $283,736 | $273,931 |
Level 2 [Member] | ||
Debt Instrument Fair Value Carrying Value [Abstract] | ||
Fair value | $298,655 | $285,441 |
Fair_Value_Measurements_Financ
Fair Value Measurements - Financial Assets and Liabilities Measured on a Recurring Basis at Fair Value (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Financial assets and liabilities measured on a recurring basis at fair value | ||
Mutual fund assets | $20,134 | $20,217 |
Derivative assets: | ||
Foreign currency contracts | 131 | 73 |
Total assets at fair value | 20,265 | 20,290 |
Derivative liabilities: | ||
Foreign currency contracts | 142 | 628 |
Interest rate contracts | 60 | |
Total liabilities at fair value | 202 | |
Level 1 [Member] | ||
Financial assets and liabilities measured on a recurring basis at fair value | ||
Mutual fund assets | 20,134 | 20,217 |
Derivative assets: | ||
Total assets at fair value | 20,134 | 20,217 |
Level 2 [Member] | ||
Derivative assets: | ||
Foreign currency contracts | 131 | 73 |
Total assets at fair value | 131 | 73 |
Derivative liabilities: | ||
Foreign currency contracts | 142 | 628 |
Interest rate contracts | 60 | |
Total liabilities at fair value | $202 |
Derivative_Instruments_Additio
Derivative Instruments - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative notional amount | $44,228,000 | $51,623,000 |
Derivative foreign currency exchange contracts settlement date | 1 month | |
Cash flow hedges [Member] | Interest rate contracts [Member] | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative notional amount | $4,139,000 | $0 |
StockBased_Compensation_Compen
Stock-Based Compensation - Compensation Expense Recorded for All Stock Options, Stock Awards and SARs (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Share Based Compensation Allocation And Classification In Financial Statements [Abstract] | ||
Compensation expense | $798 | $226 |
StockBased_Compensation_Unreco
Stock-Based Compensation - Unrecognized Compensation Costs for Stock Options, Stock Awards and SARs (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Stock Option [Member] | ||
Unrecognized compensation costs for stock options, stock awards and SARs | ||
Unrecognized compensation costs for stock options, stock awards and SARs | $1,668 | $774 |
Stock Awards [Member] | ||
Unrecognized compensation costs for stock options, stock awards and SARs | ||
Unrecognized compensation costs for stock options, stock awards and SARs | 3,728 | 1,365 |
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 | $3,015 | $693 |
StockBased_Compensation_Share_
Stock-Based Compensation - Share Based Payment Awards Granted in Period (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
Stock Option [Member] | |
Awards granted in period | |
Stock options granted in period | 82,969 |
Stock Awards [Member] | |
Awards granted in period | |
Awards granted in period | 73,028 |
Stock Appreciation Rights (SARs) [Member] | |
Awards granted in period | |
Awards granted in period | 182,417 |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
Stock Option [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Weighted average period for amortization of unrecognized compensation cost | 1 year 7 months 6 days |
Stock Awards [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Weighted average period for amortization of unrecognized compensation cost | 2 years 6 months |
Stock Appreciation Rights (SARs) [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Weighted average period for amortization of unrecognized compensation cost | 1 year 8 months 12 days |
Inventories_Composition_of_Inv
Inventories - Composition of Inventories (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Finished products | $120,166 | $126,157 |
Raw materials | 52,002 | 57,076 |
Total inventories | $172,168 | $183,233 |
Inventories_Additional_Informa
Inventories - Additional Information (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
LIFO reserve | $32,825,000 | $34,340,000 |
Contingencies_Additional_Infor
Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
States | |||
Site Contingency [Line Items] | |||
Environmental and legal losses, minimum | $22,100,000 | ||
Environmental and legal losses, maximum | 41,400,000 | ||
Accrued liability for losses | 22,100,000 | 22,000,000 | |
Cash outlays related to legal and environmental matters | 300,000 | 300,000 | |
Number of states examining company unclaimed property records | 7 | ||
Liability for unpaid claim and claim adjustment expense, claims paid | 4,016,000 | 3,475,000 | |
VAT inflation, penalty and interest charges | 0 | ||
Maywood Site [Member] | |||
Site Contingency [Line Items] | |||
Accrual for environmental loss contingencies, increase (decrease) for revision in estimates | 600,000 | ||
Wilmington Site [Member] | |||
Site Contingency [Line Items] | |||
Contribution for future response costs | 5.00% | ||
Payment of environmental response costs | $2,300,000 |
Postretirement_Benefit_Plans_C
Postretirement Benefit Plans - Components of Net Periodic Benefit Cost (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
United States [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Interest cost | $1,701 | $1,723 |
Expected return on plan assets | -2,393 | -2,378 |
Amortization of net actuarial loss | 1,149 | 662 |
Net periodic benefit cost (income) | 457 | 7 |
United Kingdom [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Interest cost | 195 | 243 |
Expected return on plan assets | -262 | -328 |
Amortization of net actuarial loss | 45 | |
Net periodic benefit cost (income) | ($22) | ($85) |
Postretirement_Benefit_Plans_D
Postretirement Benefit Plans - Defined Benefit Pension Plans - Additional Information (Detail) (Defined Benefit Pension Plan [Member], USD $) | 3 Months Ended |
Mar. 31, 2015 | |
U.S Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Company's expected contribution to qualified plan | $0 |
Expected payment related to unqualified plan | 185,000 |
Payments related to non-qualified plans | 141,000 |
U.K Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Company's expected contribution to qualified plan | 551,000 |
Employer contributions | $216,000 |
Postretirement_Benefit_Plans_D1
Postretirement Benefit Plans - Defined Contribution Plan Expenses for the Company's Retirement Savings Plans and Profit Sharing Plan (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Defined Contribution Plan Disclosure [Line Items] | ||
Total defined contribution expense | $2,164 | $1,895 |
Retirement Savings Plans [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Total defined contribution expense | 1,184 | 1,131 |
Profit Sharing Plan [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Total defined contribution expense | $980 | $764 |
Postretirement_Benefit_Plans_D2
Postretirement Benefit Plans - Defined Contribution Plans - Additional Information (Detail) (Defined Benefit Pension Plan [Member], USD $) | Mar. 31, 2015 |
Defined Benefit Pension Plan [Member] | |
Defined Contribution Plan Disclosure [Line Items] | |
Balance of trust assets | $1,813,000 |
Earnings_Per_Share_Computation
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Computation of Basic Earnings per Share | ||||
Net income attributable to Stepan Company | $21,270 | $13,018 | ||
Weighted-average number of shares outstanding | 22,718 | 22,773 | ||
Basic earnings per share | $0.94 | $0.57 | ||
Computation of Diluted Earnings per Share | ||||
Net income attributable to Stepan Company | $21,270 | $13,018 | ||
Weighted-average number of shares outstanding | 22,718 | 22,773 | ||
Add weighted-average net shares issuable from assumed exercise of options (under treasury stock method) | 104 | [1] | 182 | [1] |
Add weighted-average net shares related to unvested stock awards (under treasury stock method) | 5 | 9 | ||
Weighted-average shares applicable to diluted earnings | 22,827 | 22,964 | ||
Diluted earnings per share | $0.93 | $0.57 | ||
[1] | Options to purchase 226,098 and 47,639 shares of Company common stock were excluded from the computation of diluted earnings per share for the three months ended March 31, 2015 and March 31, 2014, respectively. 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 | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Earnings Per Share [Abstract] | ||
Options to purchase shares of common stock not included in the computations of diluted earnings per share | 226,098 | 47,639 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) - Summary of Changes in Accumulated Other Comprehensive Income (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Accumulated Other Comprehensive Income (Loss), beginning balance | ($83,945) | ($29,528) |
Other comprehensive income before reclassifications | -25,180 | 117 |
Amounts reclassified from AOCI | 750 | 413 |
Net current-period other comprehensive income | -24,430 | 530 |
Accumulated Other Comprehensive Income (Loss), ending balance | -108,375 | -28,998 |
Foreign Currency Translation Adjustments [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Accumulated Other Comprehensive Income (Loss), beginning balance | -42,914 | -10,971 |
Other comprehensive income before reclassifications | -25,137 | 117 |
Net current-period other comprehensive income | -25,137 | 117 |
Accumulated Other Comprehensive Income (Loss), ending balance | -68,051 | -10,854 |
Defined Benefit Pension Plan Adjustments [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Accumulated Other Comprehensive Income (Loss), beginning balance | -41,149 | -18,672 |
Amounts reclassified from AOCI | 749 | 410 |
Net current-period other comprehensive income | 749 | 410 |
Accumulated Other Comprehensive Income (Loss), ending balance | -40,400 | -18,262 |
Cash Flow Hedge Adjustments [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Accumulated Other Comprehensive Income (Loss), beginning balance | 118 | 115 |
Other comprehensive income before reclassifications | -43 | |
Amounts reclassified from AOCI | 1 | 3 |
Net current-period other comprehensive income | -42 | 3 |
Accumulated Other Comprehensive Income (Loss), ending balance | $76 | $118 |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Loss) - Summary of Amounts Reclassifications Out of Accumulated Other Comprehensive Income (Detail) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Tax benefit | ($9,250) | ($5,081) | ||
Defined Benefit Pension Plan Adjustments [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Amortization of defined benefit pension actuarial losses | -1,194 | [1],[2] | -662 | [1],[2] |
Tax benefit | 445 | [1] | 252 | [1] |
Income applicable to common stock | -749 | [1] | -410 | [1] |
Cash Flow Hedge Adjustments [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Tax benefit | 2 | [1] | 2 | [1] |
Income applicable to common stock | -1 | [1] | -3 | [1] |
Total before tax | -3 | [1] | -5 | [1] |
Cash Flow Hedge Adjustments [Member] | Interest rate contracts [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest, net | -5 | [1] | -7 | [1] |
Cash Flow Hedge Adjustments [Member] | Foreign exchange contracts [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of sales | 2 | [1] | 2 | [1] |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Income applicable to common stock | ($750) | [1] | ($413) | [1] |
[1] | Amounts in parentheses denote expense to statement of income. | |||
[2] | 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) | 3 Months Ended |
Mar. 31, 2015 | |
Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment_Reporting_Operating_Se
Segment Reporting - Operating Segment (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Net Sales | $460,451 | $477,442 |
Surfactants [Member] | ||
Segment Reporting Information [Line Items] | ||
Net Sales | 330,551 | 335,710 |
Polymers [Member] | ||
Segment Reporting Information [Line Items] | ||
Net Sales | 109,364 | 119,107 |
Specialty Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Net Sales | $20,536 | $22,625 |
Segment_Reporting_Reconciliati
Segment Reporting - Reconciliation of Segment Information to Consolidated Financial Statements (Detail) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Segment Reporting Information [Line Items] | ||||
Operating income | $35,178 | $22,523 | ||
Interest expense, net | -4,054 | -2,957 | ||
Loss from equity in joint ventures | -1,240 | -1,451 | ||
Other, net | 652 | -26 | ||
Income Before Provision for Income Taxes | 30,536 | 18,089 | ||
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | 50,793 | 33,185 | ||
Operating Segments [Member] | Surfactants [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | 33,764 | 18,338 | ||
Operating Segments [Member] | Polymers [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | 14,785 | 10,826 | ||
Operating Segments [Member] | Specialty Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | 2,244 | 4,021 | ||
Segment Reconciling Items [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Unallocated corporate expenses | ($15,615) | [1] | ($10,662) | [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 $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Total debt | $283,736 | $273,931 |
Less current maturities | 27,799 | 27,034 |
Long-term debt | 255,937 | 246,897 |
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 | 22,857 | 22,857 |
Debt instrument interest rate percentage | 5.69% | 5.69% |
Maturity Dates | 2015-2018 | 2015-2018 |
Unsecured private placement 6.86% note [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 4,284 | 4,284 |
Debt instrument interest rate percentage | 6.86% | 6.86% |
Maturity Dates | 2015 | 2015 |
Unsecured U.S. bank debt [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 30,000 | 20,000 |
Maturity Dates | 2019 | 2019 |
Debt of foreign subsidiaries Unsecured bank debt, foreign currency [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 14,388 | 12,043 |
Maturity Dates | 2015 | 2015 |
Debt of foreign subsidiaries Unsecured bank term loan, foreign currency [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 4,139 | 4,840 |
Maturity Dates | 2021 | 2021 |
Debt of foreign subsidiaries Secured bank term loan, foreign currency [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 537 | 2,723 |
Maturity Dates | 2015 | 2015 |
Debt of foreign subsidiaries Secured bank debt, foreign currency [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 1,985 | 1,638 |
Maturity Dates | 2015 | 2015 |
Debt of foreign subsidiaries Unsecured bank debt, U.S dollars [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $546 | $546 |
Maturity Dates | 2015 | 2015 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Debt Disclosure [Abstract] | ||
Revolving credit agreement | $125,000,000 | |
Credit agreement expiry Date | 31-Jul-19 | |
Letters of Credit Outstanding | 2,952,000 | |
Debt Outstanding | 30,000,000 | |
Unused Revolving credit | 92,048,000 | |
Unrestricted retained earnings | $98,361,000 | $88,684,000 |
Other_Net_Other_Net_in_Consoli
Other, Net - Other Net in Consolidated Statements of Income (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Other Nonoperating Income Expense [Abstract] | ||
Foreign exchange loss | ($2) | ($205) |
Investment income | 123 | 156 |
Realized and unrealized gain on investments | 531 | 23 |
Other, net | $652 | ($26) |
Sale_of_Product_Line_Additiona
Sale of Product Line - Additional Information (Detail) (J6 Polymers, LLC [Member], USD $) | 1 Months Ended | |
Jan. 31, 2015 | Mar. 31, 2015 | |
Sale Of Product Line [Line Items] | ||
Company's expectation of pretax gain from the kits sales | $2,862,000 | |
Polyurethane Systems Product Lines [Member] | ||
Sale Of Product Line [Line Items] | ||
Sale of product line for cash | 3,262,000 | |
Net sales | $2,800,000 |
Business_Restructuring_Additio
Business Restructuring - Additional Information (Detail) (USD $) | 3 Months Ended | |||
Dec. 31, 2014 | Sep. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | |
Employees | Employees | |||
Restructuring Cost And Reserve [Line Items] | ||||
Number of employees accepting voluntary termination incentive | 13 | |||
Restructuring charges against income | $1,722,000 | |||
Number of North American positions eliminated | 16 | |||
Accelerated depreciation expenses | 907,000 | |||
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 | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
2014 Restructuring [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring liability at Beginning Balance | $1,722 | |
Amounts paid | -1,435 | |
Foreign currency translation | -23 | |
Restructuring liability at Ending Balance | 264 | |
2013 Restructuring [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring liability at Beginning Balance | 563 | 1,040 |
Amounts paid | -338 | -420 |
Foreign currency translation | -39 | -57 |
Restructuring liability at Ending Balance | $186 | $563 |
Acquisition_Agreement_Addition
Acquisition Agreement - Additional Information (Detail) (Procter and Gamble Company [Member], Brazil [Member]) | Jul. 15, 2014 |
T | |
Procter and Gamble Company [Member] | Brazil [Member] | |
Business Acquisition [Line Items] | |
Capacity of production facility purchased in connection with acquisition | 30,000 |