Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 21, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | SCL | |
Entity Registrant Name | STEPAN CO | |
Entity Central Index Key | 94,049 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 22,364,316 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Income Statement [Abstract] | |||||
Net Sales | $ 454,603 | $ 452,414 | $ 900,500 | $ 912,865 | |
Cost of Sales | 361,672 | 372,902 | 714,070 | 756,911 | |
Gross Profit | 92,931 | 79,512 | 186,430 | 155,954 | |
Operating Expenses: | |||||
Selling | 14,572 | 14,265 | 28,262 | 27,262 | |
Administrative | [1] | 17,692 | 17,482 | 36,392 | 35,244 |
Research, development and technical services | 14,256 | 12,597 | 28,038 | 24,387 | |
Deferred compensation expense | [1] | 2,434 | 6,573 | 5,154 | 8,150 |
Total Operating expenses | 48,954 | 50,917 | 97,846 | 95,043 | |
Gain on sale of product line | 2,862 | ||||
Business restructuring | (1,061) | (1,061) | |||
Operating Income | 42,916 | 28,595 | 87,523 | 63,773 | |
Other Income (Expense): | |||||
Interest, net | (3,417) | (2,869) | (7,031) | (6,923) | |
Loss from equity in joint ventures (Note 16) | (1,815) | (3,055) | |||
Other, net (Note 13) | (303) | 235 | (828) | 887 | |
Nonoperating Income (Expense), Total | (3,720) | (4,449) | (7,859) | (9,091) | |
Income Before Provision for Income Taxes | 39,196 | 24,146 | 79,664 | 54,682 | |
Provision for Income Taxes | 11,326 | 7,205 | 24,137 | 16,455 | |
Net Income | 27,870 | 16,941 | 55,527 | 38,227 | |
Net Income Attributable to Noncontrolling Interests (Note 2) | (5) | (27) | (8) | (43) | |
Net Income Attributable to Stepan Company | $ 27,865 | $ 16,914 | $ 55,519 | $ 38,184 | |
Net Income Per Common Share Attributable to Stepan Company (Note 9): | |||||
Basic | $ 1.22 | $ 0.74 | $ 2.44 | $ 1.68 | |
Diluted | $ 1.21 | $ 0.74 | $ 2.42 | $ 1.67 | |
Shares Used to Compute Net Income Per Common Share Attributable to Stepan Company (Note 9): | |||||
Basic | 22,760 | 22,742 | 22,746 | 22,731 | |
Diluted | 22,958 | 22,871 | 22,920 | 22,850 | |
Dividends Declared Per Common Share | $ 0.19 | $ 0.18 | $ 0.38 | $ 0.36 | |
[1] | For the three and six months ended June 30, 2015, deferred compensation expense was included in the administrative expense line. The 2015 amounts have been classified separately to conform to the current year presentation. |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 27,870 | $ 16,941 | $ 55,527 | $ 38,227 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments (Note 10) | (2,692) | 5,957 | 9,898 | (19,195) |
Pension liability adjustment, net of tax (Note 10) | 565 | 750 | 1,129 | 1,499 |
Derivative instrument activity, net of tax (Note 10) | (6) | 16 | (27) | (26) |
Other comprehensive income (loss) | (2,133) | 6,723 | 11,000 | (17,722) |
Comprehensive income | 25,737 | 23,664 | 66,527 | 20,505 |
Comprehensive (income) loss attributable to noncontrolling interests (Note 2) | 39 | (44) | 25 | (45) |
Comprehensive income attributable to Stepan Company | $ 25,776 | $ 23,620 | $ 66,552 | $ 20,460 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Current Assets: | ||
Cash and cash equivalents | $ 190,411 | $ 176,143 |
Receivables, net | 285,058 | 249,602 |
Inventories (Note 6) | 180,651 | 170,424 |
Other current assets | 23,219 | 23,404 |
Total current assets | 679,339 | 619,573 |
Property, Plant and Equipment: | ||
Cost | 1,477,841 | 1,446,098 |
Less: accumulated depreciation | (914,231) | (890,635) |
Property, plant and equipment, net | 563,610 | 555,463 |
Goodwill, net | 11,292 | 11,265 |
Other intangible assets, net | 16,561 | 17,957 |
Long-term investments (Note 3) | 21,225 | 20,910 |
Other non-current assets (Note 18) | 12,448 | 13,224 |
Total assets | 1,304,475 | 1,238,392 |
Current Liabilities: | ||
Current maturities of long-term debt (Note 12) | 14,377 | 18,806 |
Accounts payable | 144,161 | 128,605 |
Accrued liabilities | 83,720 | 95,833 |
Total current liabilities | 242,258 | 243,244 |
Deferred income taxes | 15,314 | 9,455 |
Long-term debt, less current maturities (Note 12 and 18) | 306,980 | 312,548 |
Other non-current liabilities | 119,664 | 114,761 |
Commitments and Contingencies (Note 7) | ||
Equity: | ||
Common stock, $1 par value; authorized 60,000,000 shares; Issued shares 25,792,832 in 2016 and 25,709,391 shares in 2015 | 25,793 | 25,709 |
Additional paid-in capital | 150,834 | 144,601 |
Accumulated other comprehensive loss (Note 10) | (114,055) | (125,088) |
Retained earnings | 627,250 | 580,208 |
Less: Common treasury stock, at cost, 3,470,084 shares in 2016 and 3,428,541 shares in 2015 | (70,938) | (68,446) |
Total Stepan Company stockholders’ equity | 618,884 | 556,984 |
Noncontrolling interests (Note 2) | 1,375 | 1,400 |
Total equity | 620,259 | 558,384 |
Total liabilities and equity | $ 1,304,475 | $ 1,238,392 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 60,000,000 | 60,000,000 |
Common stock, shares issued | 25,792,832 | 25,709,391 |
Treasury stock, shares | 3,470,084 | 3,428,541 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | ||
Cash Flows From Operating Activities | |||
Net income | $ 55,527 | $ 38,227 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 36,453 | 32,859 | |
Deferred compensation | [1] | 5,154 | 8,150 |
Realized and unrealized losses (gains) on long-term investments | 205 | (642) | |
Stock-based compensation | 4,448 | 3,162 | |
Deferred income taxes | 6,146 | (1,953) | |
Other non-cash items | 1,165 | 508 | |
Changes in assets and liabilities: | |||
Receivables, net | (33,586) | (679) | |
Inventories | (8,664) | (245) | |
Other current assets | 335 | (2,438) | |
Accounts payable and accrued liabilities | 8,586 | 3,386 | |
Pension liabilities | 365 | 358 | |
Environmental and legal liabilities | 767 | (1,408) | |
Deferred revenues | (564) | (781) | |
Excess tax benefit from stock options and awards | (893) | (236) | |
Net Cash Provided By Operating Activities | 75,444 | 78,268 | |
Cash Flows From Investing Activities | |||
Expenditures for property, plant and equipment | (40,696) | (54,021) | |
Business acquisition (Note 17) | (5,133) | ||
Proceeds from sale of product line (Note14) | 3,262 | ||
Other, net | (3,533) | (1,746) | |
Net Cash Used In Investing Activities | (44,229) | (57,638) | |
Cash Flows From Financing Activities | |||
Revolving debt and bank overdrafts, net | (3,971) | (9,435) | |
Other debt repayments | (6,033) | (2,503) | |
Dividends paid | (8,477) | (8,061) | |
Company stock repurchased | (2,408) | ||
Stock option exercises | 1,351 | 359 | |
Excess tax benefit from stock options and awards | 893 | 236 | |
Other, net | (235) | (275) | |
Net Cash Used In Financing Activities | (18,880) | (19,679) | |
Effect of Exchange Rate Changes on Cash | 1,933 | (3,801) | |
Net Increase (Decrease) in Cash and Cash Equivalents | 14,268 | (2,850) | |
Cash and Cash Equivalents at Beginning of Period | 176,143 | 85,215 | |
Cash and Cash Equivalents at End of Period | 190,411 | 82,365 | |
Supplemental Cash Flow Information | |||
Cash payments of income taxes, net of refunds | 11,074 | 6,873 | |
Cash payments of interest | $ 7,442 | $ 6,046 | |
[1] | For the three and six months ended June 30, 2015, deferred compensation expense was included in the administrative expense line. The 2015 amounts have been classified separately to conform to the current year presentation. |
Condensed Consolidated Financia
Condensed Consolidated Financial Statements | 6 Months Ended |
Jun. 30, 2016 | |
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 (U.S. 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 June 30, 2016, and its results of operations for the three and six months ended June 30, 2016 and 2015, and cash flows for the six months ended June 30, 2016 and 2015, 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 2015 Form 10-K. |
Reconciliations of Equity
Reconciliations of Equity | 6 Months Ended |
Jun. 30, 2016 | |
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 six months ended June 30, 2016 and 2015: (In thousands) Total Equity Stepan Company Equity Noncontrolling Interests’ Equity (3) Balance at January 1, 2016 $ 558,384 $ 556,984 $ 1,400 Net income 55,527 55,519 8 Dividends (8,477 ) (8,477 ) — Common stock purchases (1) (2,643 ) (2,643 ) — Stock option exercises 1,351 1,351 — Defined benefit pension adjustments, net of tax 1,129 1,129 — Translation adjustments 9,898 9,931 (33 ) Derivative instrument activity, net of tax (27 ) (27 ) — Other (2) 5,117 5,117 — Balance at June 30, 2016 $ 620,259 $ 618,884 $ 1,375 (In thousands) Total Equity Stepan Company Equity Noncontrolling Interests’ Equity (3) Balance at January 1, 2015 $ 536,944 $ 535,546 $ 1,398 Net income 38,227 38,184 43 Dividends (8,061 ) (8,061 ) — Common stock purchases (1) (273 ) (273 ) — Stock option exercises 359 359 — Defined benefit pension adjustments, net of tax 1,499 1,499 — Translation adjustments (19,195 ) (19,197 ) 2 Derivative instrument activity, net of tax (26 ) (26 ) — Other (2) 2,488 2,488 — Balance at June 30, 2015 $ 551,962 $ 550,519 $ 1,443 (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 the related excess tax benefits. (3) Reflects the noncontrolling interest in the Company’s China joint venture. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. FAIR VALUE MEASUREMENTS The following describe the financial instruments held by the Company at June 30, 2016, and December 31, 2015, and the methods and assumptions used to estimate the instruments’ fair values: Cash and cash equivalents Carrying value approximated fair value because of the short maturity of the instruments. Derivative assets and liabilities Derivative assets and liabilities included 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 included the mutual fund assets the Company held to fund a portion of its deferred compensation liabilities and all of its non-qualified supplemental executive defined contribution obligations (see the defined contribution plans section of Note 8). Fair value and carrying value were the same because the mutual fund assets were recorded at fair value in accordance with the fair value option rules 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 June 30, 2016, and December 31, 2015, the fair values of debt and the related carrying values, including current maturities, were as follows (the fair value and carrying value amounts are shown without regard to unamortized debt issuance costs): (In thousands) June 30, 2016 December 31, 2015 Fair value $ 333,229 $ 331,183 Carrying value 322,550 332,623 The following tables present financial assets and liabilities measured on a recurring basis at fair value as of June 30, 2016, and December 31, 2015, and the level within the fair value hierarchy in which the fair value measurements fall: (In thousands) June 2016 Level 1 Level 2 Level 3 Mutual fund assets $ 21,225 $ 21,225 $ — $ — Derivative assets: Foreign currency contracts 339 — 339 — Total assets at fair value $ 21,564 $ 21,225 $ 339 $ — Derivative liabilities: Foreign currency contracts $ 591 $ — $ 591 $ — Interest rate contracts 86 — 86 — Total liabilities at fair value $ 677 $ — $ 677 $ — (In thousands) December 2015 Level 1 Level 2 Level 3 Mutual fund assets $ 20,910 $ 20,910 $ — $ — Derivative assets: Foreign currency contracts 112 — 112 — Total assets at fair value $ 21,022 $ 20,910 $ 112 $ — Derivative liabilities : Foreign currency contracts $ 305 $ — $ 305 $ — Interest rate contracts 53 — 53 — Total liabilities at fair value $ 358 $ — $ 358 $ — |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2016 | |
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. GAAP. 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 June 30, 2016, and December 31, 2015, the Company had open forward foreign currency exchange contracts, all with settlement dates of approximately one month, to buy or sell foreign currencies with U.S. dollar equivalent amounts of $35,754,000 and $31,194,000, 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 $3,491,000 at June 30, 2016, and $3,724,000 at December 31, 2015. The contracts were designated as cash flow hedges. 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 June 30, 2016, and December 31, 2015, are disclosed in Note 3. Derivative instrument gains and losses for the three- and six-month periods ending June 30, 2016 and 2015, were immaterial. For amounts reclassified out of AOCI into earnings for the three- and six-month periods ended June 30, 2016 and 2015, see Note 10. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 5. STOCK-BASED COMPENSATION On June 30, 2016, the Company had stock options 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 June 30 Six Months Ended June 30 2016 2015 2016 2015 $ 2,025 $ 2,364 $ 4,448 $ 3,162 The increase in stock-based compensation expense between the six-month periods ended June 30, 2016 and 2015, was primarily attributable to increased compensation related to performance awards. The increase resulted from management’s assessment that the profitability performance metrics for certain grants would be achieved at greater levels than previously estimated. Unrecognized compensation costs for stock options, stock awards and SARs were as follows: (In thousands) June December 31, 2015 Stock options $ 1,564 $ 784 Stock awards 5,704 3,396 SARs 3,260 1,644 The increases in unrecognized compensation costs for stock options, stock awards and SARs reflected the 2016 grants of: Shares Stock options 104,226 Stock awards (at target) 72,997 SARs 214,164 The unrecognized compensation costs at June 30, 2016, are expected to be recognized over weighted-average periods of 1.4 years, 2.1 years and 1.4 years for stock options, stock awards and SARs, respectively. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | 6. INVENTORIES The composition of inventories was as follows: (In thousands) June 30, 2016 December 31, 2015 Finished goods $ 129,734 $ 124,481 Raw materials 50,917 45,943 Total inventories $ 180,651 $ 170,424 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, total inventory balances would have been approximately $25,863,000 and $18,171,000 higher than reported at June 30, 2016, and December 31, 2015, respectively. |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, 2016, the Company estimated a range of possible environmental and legal losses of $21.7 million to $42.4 million. At June 30, 2016, and December 31, 2015, 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 $21.7 million and $20.9 million, respectively. During the first six months of 2016 and 2015, cash outlays related to legal and environmental matters approximated $0.6 and $1.9 million, respectively. 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 June 30, 2016: 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 United States Environmental Protection Agency (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, and on September 24, 2014, USEPA issued its Record of Decision (ROD) for chemically-contaminated soil. USEPA has not yet issued a ROD for chemically-contaminated groundwater for the Maywood site. Based on the most current information available, 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 entered into an Administrative Settlement Agreement and Administrative Order on Consent with USEPA which requires payment of certain costs and 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 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 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 $2.5 million for the Company’s portion of environmental response costs. 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. Mexico Value-Added Tax In the first quarter of 2015, during an examination of the 2009 and 2010 financial records of the Company’s Mexico subsidiary, 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 a liability 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– 014. The amount recorded was not material to the Company’s results of operations. No charge was recorded for the past unpaid VAT because the Company believes the amount will be recoverable through the normal VAT process. No exposure for years after 2014 exists as the Company remedied the underlying issue that led to the tax authorities’ determination. In February 2016, the Company reached agreement with Mexico’s tax authorities on the amount of inflation, penalty and interest charged for the 2009 and 2010 years under audit. No significant adjustments were required to the previously recorded liability. Depending on the outcomes of future negotiations with Mexico tax authorities regarding the years 2011-2014 and the actual amount of the past VAT that is recovered by the Company, the final actual settlement could differ from the current recorded liability. |
Postretirement Benefit Plans
Postretirement Benefit Plans | 6 Months Ended |
Jun. 30, 2016 | |
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 (In thousands) Three Months Ended June 30 Six Months Ended June 30 2016 2015 2016 2015 Interest cost $ 1,730 $ 1,702 $ 3,459 $ 3,403 Expected return on plan assets (2,254 ) (2,393 ) (4,508 ) (4,786 ) Amortization of net actuarial loss 882 1,149 1,764 2,298 Net periodic benefit cost $ 358 $ 458 $ 715 $ 915 UNITED KINGDOM (In thousands) Three Months Ended June 30 Six Months Ended June 30 2016 2015 2016 2015 Interest cost $ 194 $ 198 $ 387 $ 393 Expected return on plan assets (238 ) (265 ) (476 ) (527 ) Amortization of net actuarial loss 20 46 40 91 Net periodic benefit (income) cost $ (24 ) $ (21 ) $ (49 ) $ (43 ) 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 2016 contributions to the funded U.S. qualified defined benefit plans. Approximately, $178,000 is expected to be paid related to the unfunded non-qualified plans in 2016. As of June 30, 2016, $133,000 had been paid related to the non-qualified plans in 2016. U.K. Plan The Company’s United Kingdom subsidiary expects to contribute approximately $361,000 to its defined benefit pension plan in 2016. As of June 30, 2016, $176,000 had been contributed to the plan in 2016. 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: (In thousands) Three Months Ended June 30 Six Months Ended June 30 2016 2015 2016 2015 Retirement savings plans $ 1,254 $ 1,136 $ 2,545 $ 2,320 Profit sharing plan 1,786 1,211 3,503 2,191 Total defined contribution expense $ 3,040 $ 2,347 $ 6,048 $ 4,511 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 June 30, 2016, the balance of the trust assets was $1,753,000, 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 | 6 Months Ended |
Jun. 30, 2016 | |
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 and six months ended June 30, 2016 and 2015: (In thousands, except per share amounts) Three Months Ended June 30 Six Months Ended June 30 2016 2015 2016 2015 Computation of Basic Earnings per Share Net income attributable to Stepan Company $ 27,865 $ 16,914 $ 55,519 $ 38,184 Weighted-average number of common shares outstanding 22,760 22,742 22,746 22,731 Basic earnings per share $ 1.22 $ 0.74 $ 2.44 $ 1.68 Computation of Diluted Earnings per Share Net income attributable to Stepan Company $ 27,865 $ 16,914 $ 55,519 $ 38,184 Weighted-average number of shares outstanding 22,760 22,742 22,746 22,731 Add weighted-average net shares issuable from assumed exercise of options (under treasury stock method) (1) 125 127 119 116 Add weighted-average net shares related to unvested stock awards (under treasury stock method) 5 2 5 3 Add weighted-average net shares from assumed exercise of SARS (under treasury stock method) 38 — 23 — Add weighted-average contingently issuable net shares related to performance stock awards (under treasury stock method) 30 — 27 — Weighted-average shares applicable to diluted earnings 22,958 22,871 22,920 22,850 Diluted earnings per share $ 1.21 $ 0.74 $ 2.42 $ 1.67 (1) |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 10. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Below are the changes in the Company’s accumulated other comprehensive income (loss) (AOCI) balances by component (net of income taxes) for the three and six months ended June 30, 2015 and 2016: (In thousands) Foreign Currency Translation Adjustments Defined Benefit Pension Plan Adjustments Cash Flow Hedge Adjustments Total Balance at March 31, 2015 $ (68,051 ) $ (40,400 ) $ 76 $ (108,375 ) Other comprehensive income before reclassifications 5,940 — 16 5,956 Amounts reclassified from AOCI — 750 — 750 Net current-period other comprehensive income 5,940 750 16 6,706 Balance at June 30, 2015 $ (62,111 ) $ (39,650 ) $ 92 $ (101,669 ) Balance at March 31, 2016 $ (75,758 ) $ (36,261 ) $ 53 $ (111,966 ) Other comprehensive income before reclassifications (2,648 ) — (9 ) (2,657 ) Amounts reclassified from AOCI — 565 3 568 Net current-period other comprehensive income (2,648 ) 565 (6 ) (2,089 ) Balance at June 30, 2016 $ (78,406 ) $ (35,696 ) $ 47 $ (114,055 ) Balance at December 31, 2014 $ (42,914 ) $ (41,149 ) $ 118 $ (83,945 ) Other comprehensive income before reclassifications (19,197 ) — (27 ) $ (19,224 ) Amounts reclassified from AOCI — 1,499 1 $ 1,500 Net current-period other comprehensive income (19,197 ) 1,499 (26 ) (17,724 ) Balance at June 30, 2015 $ (62,111 ) $ (39,650 ) $ 92 $ (101,669 ) Balance at December 31, 2015 $ (88,337 ) $ (36,825 ) $ 74 $ (125,088 ) Other comprehensive income before reclassifications 9,931 — (32 ) 9,899 Amounts reclassified from AOCI — 1,129 5 1,134 Net current-period other comprehensive income 9,931 1,129 (27 ) 11,033 Balance at June 30, 2016 $ (78,406 ) $ (35,696 ) $ 47 $ (114,055 ) Information regarding the reclassifications out of AOCI for the three and six months ended June 30, 2016 and 2015, is displayed below: (In thousands) Amount Reclassified from AOCI (a) AOCI Components Three Months Ended June 30 Six Months Ended June 30 Affected Line Item in Consolidated Statements of Income 2016 2015 2016 2015 Amortization of defined benefit pension actuarial losses $ (902 ) $ (1,195 ) $ (1,804 ) $ (2,389 ) (b) 337 445 675 890 Tax benefit $ (565 ) $ (750 ) $ (1,129 ) $ (1,499 ) Net of tax Gains and losses on cash flow hedges: Interest rate contracts $ (7 ) $ (5 ) $ (13 ) $ (10 ) Interest, net Foreign exchange contracts 2 3 4 5 Cost of sales (5 ) (2 ) (9 ) (5 ) Total before tax 2 2 4 4 Tax benefit $ (3 ) $ - $ (5 ) $ (1 ) Net of tax Total reclassifications for the period $ (568 ) $ (750 ) $ (1,134 ) $ (1,500 ) 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 | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting | 11. SEGMENT REPORTING The Company has three reportable segments: Surfactants, Polymers and Specialty Products. Net sales by segment for the three and six months ended June 30, 2016 and 2015, were as follows: (In thousands) Three Months Ended June 30 Six Months Ended June 30 2016 2015 2016 2015 Segment Net Sales Surfactants $ 298,587 $ 299,743 $ 608,547 $ 630,294 Polymers 134,498 133,613 248,396 242,977 Specialty Products 21,518 19,058 43,557 39,594 Total $ 454,603 $ 452,414 $ 900,500 $ 912,865 Segment operating income and reconciliations of segment operating income to consolidated income before income taxes for the three and six months ended June 30, 2016 and 2015, are summarized below: (In thousands) Three Months Ended June 30 Six Months Ended June 30 2016 2015 2016 2015 Segment Operating Income Surfactants $ 27,232 $ 24,232 $ 64,477 $ 57,996 Polymers 30,994 23,429 53,191 38,214 Specialty Products 1,788 1,522 4,121 3,766 Segment operating income 60,014 49,183 121,789 99,976 Business restructuring (1,061 ) — (1,061 ) — Unallocated corporate expenses (1) (16,037 ) (20,588 ) (33,205 ) (36,203 ) Consolidated operating income 42,916 28,595 87,523 63,773 Interest expense, net (3,417 ) (2,869 ) (7,031 ) (6,923 ) Loss from equity in joint ventures — (1,815 ) — (3,055 ) Other, net (303 ) 235 (828 ) 887 Consolidated income before income taxes $ 39,196 $ 24,146 $ 79,664 $ 54,682 (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 | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | 12. DEBT At June 30, 2016, and December 31, 2015, debt comprised the following: (In thousands) Maturity Dates June 30, 2016 December 31, 2015 Unsecured private placement notes 3.95% (net of unamortized debt issuance cost of $366 and $383 for 2016 and 2015, respectively) 2021-2027 $ 99,634 $ 99,617 3.86% (net of unamortized debt issuance cost of $417 and $440 for 2016 and 2015, respectively) 2019-2025 99,583 99,560 4.86% (net of unamortized debt issuance cost of $244 and $260 for 2016 and 2015, respectively) 2017-2023 64,756 64,740 5.88% (net of unamortized debt issuance cost of $129 and $140 for 2016 and 2015, respectively) 2016-2022 34,157 39,860 5.69% (net of unamortized debt issuance cost of $38 and $46 for 2016 and 2015, respectively) 2016-2018 17,104 17,096 Unsecured U.S. Bank Debt 2019 — Debt of foreign subsidiaries Unsecured bank debt, foreign currency 2016 151 4,810 Unsecured bank term loan, foreign currency 2021 3,491 3,724 Secured bank debt, foreign currency 2016 2,481 1,947 Total debt $ 321,357 $ 331,354 Less current maturities 14,377 18,806 Long-term debt $ 306,980 $ 312,548 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 June 30, 2016, the Company had outstanding letters of credit totaling $4,927,000 and no outstanding borrowing under the revolving credit agreement. There was $120,073,000 available under the revolving credit agreement as of June 30, 2016. 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 $146,434,000 and $119,891,000 at June 30, 2016 and December 31, 2015, respectively. Net debt (which is defined as total debt minus cash) was $130,946,000 at June 30, 2016 compared to $155,211,000 at December 31, 2015. |
Other, Net
Other, Net | 6 Months Ended |
Jun. 30, 2016 | |
Other Income And Expenses [Abstract] | |
Other, Net | 13. OTHER, NET Other, net in the consolidated statements of income included the following: (In thousands) Three Months Ended June 30 Six Months Ended June 30 2016 2015 2016 2015 Foreign exchange gain (loss) $ (464 ) $ 101 $ (775 ) $ 99 Investment income 60 23 152 146 Realized and unrealized gains (loss) on investments 101 111 (205 ) 642 Other, net $ (303 ) $ 235 $ (828 ) $ 887 |
Sale of Product Line
Sale of Product Line | 6 Months Ended |
Jun. 30, 2016 | |
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 a part of the Company’s Polymers segment. The sale of kits included inventory, 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, Company operating income for the six months ended June 30, 2015, included a pretax gain of $2,862,000. The gain was attributed to the Polymer segment. 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 | 6 Months Ended |
Jun. 30, 2016 | |
Restructuring And Related Activities [Abstract] | |
Business Restructuring | 15. BUSINESS RESTRUCTURING In May 2016, the Company announced plans to shut down its Longford Mills, Canada, facility, a part of the Surfactants reportable segment, by the end of 2016. Execution of this plan will result in a workforce reduction of approximately 30 employees. Production of goods currently manufactured at the Longford Mill’s facility will be moved to other Company North American production sites. The plant closure is expected to enable the Company to improve its asset utilization in North America and to further reduce the Company’s fixed cost base. For the three and six months ended June 30, 2016, the Company recognized $1,061,000 of restructuring expenses, all of which related to employee termination costs. Additional plant closure costs, including decommissioning, are estimated to be $3,000,000 and are expected to be recognized as incurred in the final half of 2016. Earlier in the year, the Company announced the discontinuation of ethoxylation production at the site in the first quarter of 2016. In addition to the restructuring costs, the Company reduced the useful lives of the manufacturing assets in the Longford Mills plant. As a result, the Company recognized $843,000 and $1,927,000 of additional depreciation expense for the three and six months ended June 30, 2016, respectively (including first quarter depreciation of $1,084,000 related to the ethoxylation assets). The expense was included in the cost of sales line of the consolidated statements of income. The change in the useful lives of the assets will add about $2,600,000 of depreciation expense in the second half of 2016. |
TIORCO, LLC Joint Venture
TIORCO, LLC Joint Venture | 6 Months Ended |
Jun. 30, 2016 | |
Equity Method Investments And Joint Ventures [Abstract] | |
TIORCO, LLC Joint Venture | 16 . TIORCO, LLC JOINT VENTURE In October 2015, the Company and its partner, Nalco Company (a subsidiary of Ecolab Inc.), made the decision to dissolve their equally owned and operated TIORCO, LLC (TIORCO) enhanced oil recovery joint venture. As a result of the dissolution, TIORCO incurred fourth quarter 2015 exit costs, for which the Company recorded its share in the three- and twelve-month periods ended December 31, 2015. The Company made a final cash investment of $2,900,000 to TIORCO during the three-month period ended March 31, 2016, to fund the exit costs and other final cash requirements for dissolving the joint venture. The additional funding did not materially differ from the exit costs recorded as of December 31, 2015. Legal dissolution of TIORCO is finalized. |
Acquisition
Acquisition | 6 Months Ended |
Jun. 30, 2016 | |
Business Combinations [Abstract] | |
Acquisition | 17 . ACQUISITION On June 15, 2015, the Company acquired Procter & Gamble do Brasil S.A.’s sulfonation production facility in Bahia, Brazil for cash of $5,133,000. The facility, which is located in northeastern Brazil, has 30,000 metric tons of surfactants capacity. The acquisition was accounted for as a business combination and, accordingly, the assets acquired and liabilities assumed as part of the acquisition were measured and recorded at their estimated fair values. The purchase included property, plant and equipment valued at $6,007,000 and the assumption of liabilities valued at $874,000. No intangibles or goodwill were acquired in the business combination. The purchase price allocation is final, and no allocation adjustments were made to the amounts recorded at the acquisition date. Other acquisition-related expenses were not material. The acquired business is included in the Company’s Surfactants segment. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent Accounting Pronouncements | 18 . RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date In January 2015, the FASB issued ASU No. 2015-01, Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items Income Statement – Extraordinary and Unusual Items In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis In April 2015, the FASB issued ASU No. 2015-03, Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs In August 2015, the FASB issued ASU No. 2015-15, Interest—Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements—Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting (SEC Update which) In April 2015, the FASB issued ASU No. 2015-05, Intangibles - Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330), Simplifying the Measurement of Inventory, In September 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805), Simplifying the Accounting for Measurement-Period Adjustments In February 2016, the FASB issued ASU No. 2016-2, Leases (Topic 842) In March 2016, the FASB issued ASU No. 2016-9, Compensation – Stock Compensation (Topic 718) Improvements to Employee Share-Based Payment Accounting. In June 2016, the FASB issued ASU No. 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Statements For public business entities that are SEC filers, the amendments in ASU No. 2016-13 are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Entities may adopt the amendments in this update earlier as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is assessing the impact that adoption of ASU No. 2016-13 will have on its financial position, results of operations and cash flows. |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Event | 19. SUBSEQUENT EVENT On July 20, 2016, the Company reported that its subsidiary in Brazil reached an agreement with Tebras Tensoativos do Brazil Ltda. (Tebras) to acquire their commercial business and with PBC Industria Quimica Ltda. (PBC) to acquire their sulfonation production facility. The combined entities have annual sales of approximately $32,000,000 dollars, 25,000 metric tons of sulfonation capacity and a large, diverse customer portfolio. The transaction is subject to customary closing conditions and is projected to close in the fourth quarter of 2016. The acquisition of Tebras and PBC, which will be included in the Company’s Surfactants segment, is expected to expand and diversify the Company’s customer base for sulfonated products in Brazil and to provide an opportunity to sell the Company’s broader surfactant portfolio to over 1,200 new customers who will benefit from the Company’s technical service and formulation support. |
Recent Accounting Pronounceme26
Recent Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent Accounting Pronouncements | In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date In January 2015, the FASB issued ASU No. 2015-01, Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items Income Statement – Extraordinary and Unusual Items In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis In April 2015, the FASB issued ASU No. 2015-03, Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs In August 2015, the FASB issued ASU No. 2015-15, Interest—Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements—Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting (SEC Update which) In April 2015, the FASB issued ASU No. 2015-05, Intangibles - Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330), Simplifying the Measurement of Inventory, In September 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805), Simplifying the Accounting for Measurement-Period Adjustments In February 2016, the FASB issued ASU No. 2016-2, Leases (Topic 842) In March 2016, the FASB issued ASU No. 2016-9, Compensation – Stock Compensation (Topic 718) Improvements to Employee Share-Based Payment Accounting. In June 2016, the FASB issued ASU No. 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Statements For public business entities that are SEC filers, the amendments in ASU No. 2016-13 are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Entities may adopt the amendments in this update earlier as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is assessing the impact that adoption of ASU No. 2016-13 will have on its financial position, results of operations and cash flows. |
Reconciliations of Equity (Tabl
Reconciliations of Equity (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Reconciliations of Total Equity | Below are reconciliations of total equity, Company equity and equity attributable to noncontrolling interests for the six months ended June 30, 2016 and 2015: (In thousands) Total Equity Stepan Company Equity Noncontrolling Interests’ Equity (3) Balance at January 1, 2016 $ 558,384 $ 556,984 $ 1,400 Net income 55,527 55,519 8 Dividends (8,477 ) (8,477 ) — Common stock purchases (1) (2,643 ) (2,643 ) — Stock option exercises 1,351 1,351 — Defined benefit pension adjustments, net of tax 1,129 1,129 — Translation adjustments 9,898 9,931 (33 ) Derivative instrument activity, net of tax (27 ) (27 ) — Other (2) 5,117 5,117 — Balance at June 30, 2016 $ 620,259 $ 618,884 $ 1,375 (In thousands) Total Equity Stepan Company Equity Noncontrolling Interests’ Equity (3) Balance at January 1, 2015 $ 536,944 $ 535,546 $ 1,398 Net income 38,227 38,184 43 Dividends (8,061 ) (8,061 ) — Common stock purchases (1) (273 ) (273 ) — Stock option exercises 359 359 — Defined benefit pension adjustments, net of tax 1,499 1,499 — Translation adjustments (19,195 ) (19,197 ) 2 Derivative instrument activity, net of tax (26 ) (26 ) — Other (2) 2,488 2,488 — Balance at June 30, 2015 $ 551,962 $ 550,519 $ 1,443 (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 the related excess tax benefits. (3) Reflects the noncontrolling interest in the Company’s China joint venture. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Values and Related Carrying Values of Debt | At June 30, 2016, and December 31, 2015, the fair values of debt and the related carrying values, including current maturities, were as follows (the fair value and carrying value amounts are shown without regard to unamortized debt issuance costs): (In thousands) June 30, 2016 December 31, 2015 Fair value $ 333,229 $ 331,183 Carrying value 322,550 332,623 |
Financial Assets and Liabilities Measured on a Recurring Basis at Fair Value | The following tables present financial assets and liabilities measured on a recurring basis at fair value as of June 30, 2016, and December 31, 2015, and the level within the fair value hierarchy in which the fair value measurements fall: (In thousands) June 2016 Level 1 Level 2 Level 3 Mutual fund assets $ 21,225 $ 21,225 $ — $ — Derivative assets: Foreign currency contracts 339 — 339 — Total assets at fair value $ 21,564 $ 21,225 $ 339 $ — Derivative liabilities: Foreign currency contracts $ 591 $ — $ 591 $ — Interest rate contracts 86 — 86 — Total liabilities at fair value $ 677 $ — $ 677 $ — (In thousands) December 2015 Level 1 Level 2 Level 3 Mutual fund assets $ 20,910 $ 20,910 $ — $ — Derivative assets: Foreign currency contracts 112 — 112 — Total assets at fair value $ 21,022 $ 20,910 $ 112 $ — Derivative liabilities : Foreign currency contracts $ 305 $ — $ 305 $ — Interest rate contracts 53 — 53 — Total liabilities at fair value $ 358 $ — $ 358 $ — |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Compensation Expense (Income) 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 June 30 Six Months Ended June 30 2016 2015 2016 2015 $ 2,025 $ 2,364 $ 4,448 $ 3,162 |
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) June December 31, 2015 Stock options $ 1,564 $ 784 Stock awards 5,704 3,396 SARs 3,260 1,644 |
Share Based Payment Awards Granted in Period | The increases in unrecognized compensation costs for stock options, stock awards and SARs reflected the 2016 grants of: Shares Stock options 104,226 Stock awards (at target) 72,997 SARs 214,164 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Composition of Inventories | The composition of inventories was as follows: (In thousands) June 30, 2016 December 31, 2015 Finished goods $ 129,734 $ 124,481 Raw materials 50,917 45,943 Total inventories $ 180,651 $ 170,424 |
Postretirement Benefit Plans (T
Postretirement Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
Components of Net Periodic Benefit Cost | Components of Net Periodic Benefit Cost UNITED STATES (In thousands) Three Months Ended June 30 Six Months Ended June 30 2016 2015 2016 2015 Interest cost $ 1,730 $ 1,702 $ 3,459 $ 3,403 Expected return on plan assets (2,254 ) (2,393 ) (4,508 ) (4,786 ) Amortization of net actuarial loss 882 1,149 1,764 2,298 Net periodic benefit cost $ 358 $ 458 $ 715 $ 915 UNITED KINGDOM (In thousands) Three Months Ended June 30 Six Months Ended June 30 2016 2015 2016 2015 Interest cost $ 194 $ 198 $ 387 $ 393 Expected return on plan assets (238 ) (265 ) (476 ) (527 ) Amortization of net actuarial loss 20 46 40 91 Net periodic benefit (income) cost $ (24 ) $ (21 ) $ (49 ) $ (43 ) |
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: (In thousands) Three Months Ended June 30 Six Months Ended June 30 2016 2015 2016 2015 Retirement savings plans $ 1,254 $ 1,136 $ 2,545 $ 2,320 Profit sharing plan 1,786 1,211 3,503 2,191 Total defined contribution expense $ 3,040 $ 2,347 $ 6,048 $ 4,511 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 and six months ended June 30, 2016 and 2015: (In thousands, except per share amounts) Three Months Ended June 30 Six Months Ended June 30 2016 2015 2016 2015 Computation of Basic Earnings per Share Net income attributable to Stepan Company $ 27,865 $ 16,914 $ 55,519 $ 38,184 Weighted-average number of common shares outstanding 22,760 22,742 22,746 22,731 Basic earnings per share $ 1.22 $ 0.74 $ 2.44 $ 1.68 Computation of Diluted Earnings per Share Net income attributable to Stepan Company $ 27,865 $ 16,914 $ 55,519 $ 38,184 Weighted-average number of shares outstanding 22,760 22,742 22,746 22,731 Add weighted-average net shares issuable from assumed exercise of options (under treasury stock method) (1) 125 127 119 116 Add weighted-average net shares related to unvested stock awards (under treasury stock method) 5 2 5 3 Add weighted-average net shares from assumed exercise of SARS (under treasury stock method) 38 — 23 — Add weighted-average contingently issuable net shares related to performance stock awards (under treasury stock method) 30 — 27 — Weighted-average shares applicable to diluted earnings 22,958 22,871 22,920 22,850 Diluted earnings per share $ 1.21 $ 0.74 $ 2.42 $ 1.67 (1) |
Accumulated Other Comprehensi33
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Summary of Changes in Accumulated Other Comprehensive Income (Loss) | Below are the changes in the Company’s accumulated other comprehensive income (loss) (AOCI) balances by component (net of income taxes) for the three and six months ended June 30, 2015 and 2016: (In thousands) Foreign Currency Translation Adjustments Defined Benefit Pension Plan Adjustments Cash Flow Hedge Adjustments Total Balance at March 31, 2015 $ (68,051 ) $ (40,400 ) $ 76 $ (108,375 ) Other comprehensive income before reclassifications 5,940 — 16 5,956 Amounts reclassified from AOCI — 750 — 750 Net current-period other comprehensive income 5,940 750 16 6,706 Balance at June 30, 2015 $ (62,111 ) $ (39,650 ) $ 92 $ (101,669 ) Balance at March 31, 2016 $ (75,758 ) $ (36,261 ) $ 53 $ (111,966 ) Other comprehensive income before reclassifications (2,648 ) — (9 ) (2,657 ) Amounts reclassified from AOCI — 565 3 568 Net current-period other comprehensive income (2,648 ) 565 (6 ) (2,089 ) Balance at June 30, 2016 $ (78,406 ) $ (35,696 ) $ 47 $ (114,055 ) Balance at December 31, 2014 $ (42,914 ) $ (41,149 ) $ 118 $ (83,945 ) Other comprehensive income before reclassifications (19,197 ) — (27 ) $ (19,224 ) Amounts reclassified from AOCI — 1,499 1 $ 1,500 Net current-period other comprehensive income (19,197 ) 1,499 (26 ) (17,724 ) Balance at June 30, 2015 $ (62,111 ) $ (39,650 ) $ 92 $ (101,669 ) Balance at December 31, 2015 $ (88,337 ) $ (36,825 ) $ 74 $ (125,088 ) Other comprehensive income before reclassifications 9,931 — (32 ) 9,899 Amounts reclassified from AOCI — 1,129 5 1,134 Net current-period other comprehensive income 9,931 1,129 (27 ) 11,033 Balance at June 30, 2016 $ (78,406 ) $ (35,696 ) $ 47 $ (114,055 ) |
Summary of Reclassifications Out of Accumulated Other Comprehensive Income | Information regarding the reclassifications out of AOCI for the three and six months ended June 30, 2016 and 2015, is displayed below: (In thousands) Amount Reclassified from AOCI (a) AOCI Components Three Months Ended June 30 Six Months Ended June 30 Affected Line Item in Consolidated Statements of Income 2016 2015 2016 2015 Amortization of defined benefit pension actuarial losses $ (902 ) $ (1,195 ) $ (1,804 ) $ (2,389 ) (b) 337 445 675 890 Tax benefit $ (565 ) $ (750 ) $ (1,129 ) $ (1,499 ) Net of tax Gains and losses on cash flow hedges: Interest rate contracts $ (7 ) $ (5 ) $ (13 ) $ (10 ) Interest, net Foreign exchange contracts 2 3 4 5 Cost of sales (5 ) (2 ) (9 ) (5 ) Total before tax 2 2 4 4 Tax benefit $ (3 ) $ - $ (5 ) $ (1 ) Net of tax Total reclassifications for the period $ (568 ) $ (750 ) $ (1,134 ) $ (1,500 ) 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) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Operating Segment | The Company has three reportable segments: Surfactants, Polymers and Specialty Products. Net sales by segment for the three and six months ended June 30, 2016 and 2015, were as follows: (In thousands) Three Months Ended June 30 Six Months Ended June 30 2016 2015 2016 2015 Segment Net Sales Surfactants $ 298,587 $ 299,743 $ 608,547 $ 630,294 Polymers 134,498 133,613 248,396 242,977 Specialty Products 21,518 19,058 43,557 39,594 Total $ 454,603 $ 452,414 $ 900,500 $ 912,865 |
Reconciliation of Segment Information to Consolidated Financial Statements | Segment operating income and reconciliations of segment operating income to consolidated income before income taxes for the three and six months ended June 30, 2016 and 2015, are summarized below: (In thousands) Three Months Ended June 30 Six Months Ended June 30 2016 2015 2016 2015 Segment Operating Income Surfactants $ 27,232 $ 24,232 $ 64,477 $ 57,996 Polymers 30,994 23,429 53,191 38,214 Specialty Products 1,788 1,522 4,121 3,766 Segment operating income 60,014 49,183 121,789 99,976 Business restructuring (1,061 ) — (1,061 ) — Unallocated corporate expenses (1) (16,037 ) (20,588 ) (33,205 ) (36,203 ) Consolidated operating income 42,916 28,595 87,523 63,773 Interest expense, net (3,417 ) (2,869 ) (7,031 ) (6,923 ) Loss from equity in joint ventures — (1,815 ) — (3,055 ) Other, net (303 ) 235 (828 ) 887 Consolidated income before income taxes $ 39,196 $ 24,146 $ 79,664 $ 54,682 (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) | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | At June 30, 2016, and December 31, 2015, debt comprised the following: (In thousands) Maturity Dates June 30, 2016 December 31, 2015 Unsecured private placement notes 3.95% (net of unamortized debt issuance cost of $366 and $383 for 2016 and 2015, respectively) 2021-2027 $ 99,634 $ 99,617 3.86% (net of unamortized debt issuance cost of $417 and $440 for 2016 and 2015, respectively) 2019-2025 99,583 99,560 4.86% (net of unamortized debt issuance cost of $244 and $260 for 2016 and 2015, respectively) 2017-2023 64,756 64,740 5.88% (net of unamortized debt issuance cost of $129 and $140 for 2016 and 2015, respectively) 2016-2022 34,157 39,860 5.69% (net of unamortized debt issuance cost of $38 and $46 for 2016 and 2015, respectively) 2016-2018 17,104 17,096 Unsecured U.S. Bank Debt 2019 — Debt of foreign subsidiaries Unsecured bank debt, foreign currency 2016 151 4,810 Unsecured bank term loan, foreign currency 2021 3,491 3,724 Secured bank debt, foreign currency 2016 2,481 1,947 Total debt $ 321,357 $ 331,354 Less current maturities 14,377 18,806 Long-term debt $ 306,980 $ 312,548 |
Other, Net (Tables)
Other, Net (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Other Income And Expenses [Abstract] | |
Other Net in Consolidated Statements of Income | Other, net in the consolidated statements of income included the following: (In thousands) Three Months Ended June 30 Six Months Ended June 30 2016 2015 2016 2015 Foreign exchange gain (loss) $ (464 ) $ 101 $ (775 ) $ 99 Investment income 60 23 152 146 Realized and unrealized gains (loss) on investments 101 111 (205 ) 642 Other, net $ (303 ) $ 235 $ (828 ) $ 887 |
Reconciliations of Equity - Rec
Reconciliations of Equity - Reconciliations of Total Equity (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Reconciliations of total equity | |||||
Beginning Balance | $ 558,384 | $ 536,944 | |||
Net income | $ 27,870 | $ 16,941 | 55,527 | 38,227 | |
Dividends | (8,477) | (8,061) | |||
Common stock purchases | [1] | (2,643) | (273) | ||
Stock option exercises | 1,351 | 359 | |||
Defined benefit pension adjustments, net of tax | 565 | 750 | 1,129 | 1,499 | |
Translation adjustments | (2,692) | 5,957 | 9,898 | (19,195) | |
Derivative instrument activity, net of tax | (6) | 16 | (27) | (26) | |
Other | [2] | 5,117 | 2,488 | ||
Ending Balance | 620,259 | 551,962 | 620,259 | 551,962 | |
Stepan Company Equity [Member] | |||||
Reconciliations of total equity | |||||
Beginning Balance | 556,984 | 535,546 | |||
Net income | 55,519 | 38,184 | |||
Dividends | (8,477) | (8,061) | |||
Common stock purchases | [1] | (2,643) | (273) | ||
Stock option exercises | 1,351 | 359 | |||
Defined benefit pension adjustments, net of tax | 1,129 | 1,499 | |||
Translation adjustments | 9,931 | (19,197) | |||
Derivative instrument activity, net of tax | (27) | (26) | |||
Other | [2] | 5,117 | 2,488 | ||
Ending Balance | 618,884 | 550,519 | 618,884 | 550,519 | |
Noncontrolling Interests' Equity [Member] | |||||
Reconciliations of total equity | |||||
Beginning Balance | [3] | 1,400 | 1,398 | ||
Net income | [3] | 8 | 43 | ||
Translation adjustments | [3] | (33) | 2 | ||
Ending Balance | [3] | $ 1,375 | $ 1,443 | $ 1,375 | $ 1,443 |
[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 the related excess tax benefits. | ||||
[3] | Reflects the noncontrolling interest in the Company’s China joint venture. |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Values and Related Carrying Values of Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Carrying value | $ 322,550 | $ 332,623 |
Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value | $ 333,229 | $ 331,183 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Measured on a Recurring Basis at Fair Value (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Mutual fund assets | $ 21,225 | $ 20,910 |
Derivative assets: | ||
Foreign currency contracts | 339 | 112 |
Total assets at fair value | 21,564 | 21,022 |
Derivative liabilities: | ||
Foreign currency contracts | 591 | 305 |
Interest rate contracts | 86 | 53 |
Total liabilities at fair value | 677 | 358 |
Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Mutual fund assets | 21,225 | 20,910 |
Derivative assets: | ||
Total assets at fair value | 21,225 | 20,910 |
Level 2 [Member] | ||
Derivative assets: | ||
Foreign currency contracts | 339 | 112 |
Total assets at fair value | 339 | 112 |
Derivative liabilities: | ||
Foreign currency contracts | 591 | 305 |
Interest rate contracts | 86 | 53 |
Total liabilities at fair value | $ 677 | $ 358 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative notional amount | $ 35,754,000 | $ 31,194,000 |
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 | $ 3,491,000 | $ 3,724,000 |
Stock-Based Compensation - Comp
Stock-Based Compensation - Compensation Expense (Income) Recorded for All Stock Options, Stock Awards and SARs (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Compensation expense (income) | $ 2,025 | $ 2,364 | $ 4,448 | $ 3,162 |
Stock-Based Compensation - Unre
Stock-Based Compensation - Unrecognized Compensation Costs for Stock Options, Stock Awards and SARs (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Stock Option [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Unrecognized compensation costs for stock options, stock awards and SARs | $ 1,564 | $ 784 |
Stock Awards [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Unrecognized compensation costs for stock options, stock awards and SARs | 5,704 | 3,396 |
Stock Appreciation Rights (SARs) [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Unrecognized compensation costs for stock options, stock awards and SARs | $ 3,260 | $ 1,644 |
Stock-Based Compensation - Shar
Stock-Based Compensation - Share Based Payment Awards Granted in Period (Detail) | 6 Months Ended |
Jun. 30, 2016shares | |
Stock Option [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Stock options granted in period | 104,226 |
Stock Awards (at target) [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Awards granted in period | 72,997 |
Stock Appreciation Rights (SARs) [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Awards granted in period | 214,164 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2016 | |
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 4 months 24 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 1 month 6 days |
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 4 months 24 days |
Inventories - Composition of In
Inventories - Composition of Inventories (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 129,734 | $ 124,481 |
Raw materials | 50,917 | 45,943 |
Total inventories | $ 180,651 | $ 170,424 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
LIFO reserve | $ 25,863,000 | $ 18,171,000 |
Contingencies - Additional Info
Contingencies - Additional Information (Detail) - USD ($) | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Site Contingency [Line Items] | |||
Environmental and legal losses | $ 21,700,000 | $ 20,900,000 | |
Cash outlays related to legal and environmental matters | 600,000 | $ 1,900,000 | |
VAT inflation, penalty and interest charges | $ 0 | ||
Wilmington Site [Member] | |||
Site Contingency [Line Items] | |||
Contribution for future response costs | 5.00% | ||
Payment of environmental response costs | $ 2,500,000 | ||
Minimum [Member] | |||
Site Contingency [Line Items] | |||
Environmental and legal losses | 21,700,000 | ||
Maximum [Member] | |||
Site Contingency [Line Items] | |||
Environmental and legal losses | $ 42,400,000 |
Postretirement Benefit Plans -
Postretirement Benefit Plans - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
United States [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | $ 1,730 | $ 1,702 | $ 3,459 | $ 3,403 |
Expected return on plan assets | (2,254) | (2,393) | (4,508) | (4,786) |
Amortization of net actuarial loss | 882 | 1,149 | 1,764 | 2,298 |
Net periodic benefit (income) cost | 358 | 458 | 715 | 915 |
United Kingdom [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 194 | 198 | 387 | 393 |
Expected return on plan assets | (238) | (265) | (476) | (527) |
Amortization of net actuarial loss | 20 | 46 | 40 | 91 |
Net periodic benefit (income) cost | $ (24) | $ (21) | $ (49) | $ (43) |
Postretirement Benefit Plans 49
Postretirement Benefit Plans - Defined Benefit Pension Plans - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2016USD ($) | |
U.S Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected payment related to qualified plan | $ 0 |
Expected payment related to unqualified plan | 178,000 |
Payments related to non-qualified plans | 133,000 |
U.K Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected payment related to qualified plan | 361,000 |
Employer contributions | $ 176,000 |
Postretirement Benefit Plans 50
Postretirement Benefit Plans - Defined Contribution Plan Expenses for the Company's Retirement Savings Plans and Profit Sharing Plan (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Defined Contribution Plan Disclosure [Line Items] | ||||
Total defined contribution expense | $ 3,040 | $ 2,347 | $ 6,048 | $ 4,511 |
Retirement Savings Plans [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Total defined contribution expense | 1,254 | 1,136 | 2,545 | 2,320 |
Profit Sharing Plan [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Total defined contribution expense | $ 1,786 | $ 1,211 | $ 3,503 | $ 2,191 |
Postretirement Benefit Plans 51
Postretirement Benefit Plans - Defined Contribution Plans - Additional Information (Detail) | Jun. 30, 2016USD ($) |
Defined Contribution Plans [Member] | |
Defined Contribution Plan Disclosure [Line Items] | |
Balance of trust assets | $ 1,753,000 |
Earnings Per Share - Computatio
Earnings Per Share - Computations of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Computation of Basic Earnings per Share | |||||
Net income attributable to Stepan Company | $ 27,865 | $ 16,914 | $ 55,519 | $ 38,184 | |
Weighted-average number of common shares outstanding | 22,760 | 22,742 | 22,746 | 22,731 | |
Basic earnings per share | $ 1.22 | $ 0.74 | $ 2.44 | $ 1.68 | |
Computation of Diluted Earnings per Share | |||||
Net income attributable to Stepan Company | $ 27,865 | $ 16,914 | $ 55,519 | $ 38,184 | |
Weighted-average number of common shares outstanding | 22,760 | 22,742 | 22,746 | 22,731 | |
Add weighted-average net shares issuable from assumed exercise of options (under treasury stock method) | [1] | 125 | 127 | 119 | 116 |
Add weighted-average net shares related to unvested stock awards (under treasury stock method) | 5 | 2 | 5 | 3 | |
Weighted-average shares applicable to diluted earnings | 22,958 | 22,871 | 22,920 | 22,850 | |
Diluted earnings per share | $ 1.21 | $ 0.74 | $ 2.42 | $ 1.67 | |
Stock Appreciation Rights (SARs) [Member] | |||||
Computation of Diluted Earnings per Share | |||||
Add weighted-average net shares issuable from assumed exercise of options (under treasury stock method) | 38 | 0 | 23 | 0 | |
Performance Stock Award [Member] | |||||
Computation of Diluted Earnings per Share | |||||
Add weighted-average net shares issuable from assumed exercise of options (under treasury stock method) | 30 | 0 | 27 | 0 | |
[1] | Options to purchase 85,243 and 87,430 shares of Company common stock were excluded from the computations of diluted earnings per share for the three and six months ended June 30, 2016, respectively. Options to purchase 91,678 and 158,888 shares of Company common stock were excluded from the computations of diluted earnings per share for the three and six months ended June 30, 2015, 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 - Computat53
Earnings Per Share - Computations of Basic and Diluted Earnings Per Share (Parenthetical) (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Options to purchase shares of common stock were excluded from the computations of diluted earnings per share | 85,243 | 91,678 | 87,430 | 158,888 |
Accumulated Other Comprehensi54
Accumulated Other Comprehensive Income (Loss) - Summary of Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning Balance | $ 556,984 | ||||
Other comprehensive income before reclassifications | $ (2,657) | $ 5,956 | 9,899 | $ (19,224) | |
Amounts reclassified from AOCI | [1] | 568 | 750 | 1,134 | 1,500 |
Net current-period other comprehensive income | (2,089) | 6,706 | 11,033 | (17,724) | |
Ending Balance | 618,884 | 618,884 | |||
Foreign Currency Translation Adjustments [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning Balance | (75,758) | (68,051) | (88,337) | (42,914) | |
Other comprehensive income before reclassifications | (2,648) | 5,940 | 9,931 | (19,197) | |
Net current-period other comprehensive income | (2,648) | 5,940 | 9,931 | (19,197) | |
Ending Balance | (78,406) | (62,111) | (78,406) | (62,111) | |
Defined Benefit Pension Plan Adjustments [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning Balance | (36,261) | (40,400) | (36,825) | (41,149) | |
Amounts reclassified from AOCI | 565 | 750 | 1,129 | 1,499 | |
Net current-period other comprehensive income | 565 | 750 | 1,129 | 1,499 | |
Ending Balance | (35,696) | (39,650) | (35,696) | (39,650) | |
Cash Flow Hedge Adjustments [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning Balance | 53 | 76 | 74 | 118 | |
Other comprehensive income before reclassifications | (9) | 16 | (32) | (27) | |
Amounts reclassified from AOCI | 3 | 5 | 1 | ||
Net current-period other comprehensive income | (6) | 16 | (27) | (26) | |
Ending Balance | 47 | 92 | 47 | 92 | |
AOCI Attributable to Parent [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning Balance | (111,966) | (108,375) | (125,088) | (83,945) | |
Ending Balance | $ (114,055) | $ (101,669) | $ (114,055) | $ (101,669) | |
[1] | Amounts in parentheses denote expense to statement of income. |
Accumulated Other Comprehensi55
Accumulated Other Comprehensive Income (Loss) - Summary of Amounts Reclassifications Out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Income applicable to common stock | [1] | $ (568) | $ (750) | $ (1,134) | $ (1,500) |
Interest, net | (3,417) | (2,869) | (7,031) | (6,923) | |
Tax benefit | (11,326) | (7,205) | (24,137) | (16,455) | |
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [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],[2] | (902) | (1,195) | (1,804) | (2,389) |
Defined Benefit Pension Plan Adjustments [Member] | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Income applicable to common stock | (565) | (750) | (1,129) | (1,499) | |
Defined Benefit Pension Plan Adjustments [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member] | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Tax benefit | [1] | 337 | 445 | 675 | 890 |
Income applicable to common stock | [1] | (565) | (750) | (1,129) | (1,499) |
Cash Flow Hedge Adjustments [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member] | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Total before tax | [1] | (5) | (2) | (9) | (5) |
Tax benefit | [1] | 2 | 2 | 4 | 4 |
Income applicable to common stock | [1] | (3) | (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 | [1] | (7) | (5) | (13) | (10) |
Cash Flow Hedge Adjustments [Member] | Commodity Contract [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member] | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Cost of sales | [1] | $ 2 | $ 3 | $ 4 | $ 5 |
[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
Segment Reporting - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2016Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Reporting - Operating S
Segment Reporting - Operating Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Net Sales | $ 454,603 | $ 452,414 | $ 900,500 | $ 912,865 |
Surfactants [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 298,587 | 299,743 | 608,547 | 630,294 |
Polymers [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 134,498 | 133,613 | 248,396 | 242,977 |
Specialty Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | $ 21,518 | $ 19,058 | $ 43,557 | $ 39,594 |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation of Segment Information to Consolidated Financial Statements (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Segment Reporting Information [Line Items] | |||||
Operating income | $ 42,916 | $ 28,595 | $ 87,523 | $ 63,773 | |
Business restructuring | (1,061) | (1,061) | |||
Interest expense, net | (3,417) | (2,869) | (7,031) | (6,923) | |
Loss from equity in joint ventures (Note 16) | (1,815) | (3,055) | |||
Other, net | (303) | 235 | (828) | 887 | |
Income Before Provision for Income Taxes | 39,196 | 24,146 | 79,664 | 54,682 | |
Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating income | 60,014 | 49,183 | 121,789 | 99,976 | |
Operating Segments [Member] | Surfactants [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating income | 27,232 | 24,232 | 64,477 | 57,996 | |
Operating Segments [Member] | Polymers [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating income | 30,994 | 23,429 | 53,191 | 38,214 | |
Operating Segments [Member] | Specialty Products [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating income | 1,788 | 1,522 | 4,121 | 3,766 | |
Segment Reconciling Items [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Unallocated corporate expenses | [1] | $ (16,037) | $ (20,588) | $ (33,205) | $ (36,203) |
[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 ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||
Total debt | $ 321,357 | $ 331,354 |
Less current maturities | 14,377 | 18,806 |
Long-term debt | 306,980 | 312,548 |
Unsecured private placement 3.95% note [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 99,634 | $ 99,617 |
Debt instrument interest rate percentage | 3.95% | 3.95% |
Unsecured private placement 3.95% note [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2,021 | 2,021 |
Unsecured private placement 3.95% note [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2,027 | 2,027 |
Unsecured private placement 3.86% note [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 99,583 | $ 99,560 |
Debt instrument interest rate percentage | 3.86% | 3.86% |
Unsecured private placement 3.86% note [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2,019 | 2,019 |
Unsecured private placement 3.86% note [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2,025 | 2,025 |
Unsecured private placement 4.86% note [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 64,756 | $ 64,740 |
Debt instrument interest rate percentage | 4.86% | 4.86% |
Unsecured private placement 4.86% note [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2,017 | 2,017 |
Unsecured private placement 4.86% note [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2,023 | 2,023 |
Unsecured private placement 5.88% note [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 34,157 | $ 39,860 |
Debt instrument interest rate percentage | 5.88% | 5.88% |
Unsecured private placement 5.88% note [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2,016 | 2,016 |
Unsecured private placement 5.88% note [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2,022 | 2,022 |
Unsecured private placement 5.69% note [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 17,104 | $ 17,096 |
Debt instrument interest rate percentage | 5.69% | 5.69% |
Unsecured private placement 5.69% note [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2,016 | 2,016 |
Unsecured private placement 5.69% note [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2,018 | 2,018 |
Unsecured U.S. bank debt [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2,019 | 2,019 |
Debt of foreign subsidiaries Unsecured bank debt, foreign currency [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 151 | $ 4,810 |
Maturity Dates | 2,016 | 2,016 |
Debt of foreign subsidiaries Unsecured bank term loan, foreign currency [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 3,491 | $ 3,724 |
Maturity Dates | 2,021 | 2,021 |
Debt of foreign subsidiaries Secured bank debt, foreign currency [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 2,481 | $ 1,947 |
Maturity Dates | 2,016 | 2,016 |
Debt - Debt (Parenthetical) (De
Debt - Debt (Parenthetical) (Detail) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Unamortized debt issuance cost | $ 1,269,000 | |
Unsecured private placement 3.95% note [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance cost | $ 366,000 | 383,000 |
Unsecured private placement 3.86% note [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance cost | 417,000 | 440,000 |
Unsecured private placement 4.86% note [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance cost | 244,000 | 260,000 |
Unsecured private placement 5.88% note [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance cost | 129,000 | 140,000 |
Unsecured private placement 5.69% note [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance cost | $ 38,000 | $ 46,000 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||
Net debt | $ 130,946,000 | $ 155,211,000 |
Multi currency revolving credit agreement [Member] | ||
Debt Instrument [Line Items] | ||
Revolving credit agreement | $ 125,000,000 | |
Credit agreement expiry Date | Jul. 31, 2019 | |
Letters of Credit Outstanding | $ 4,927,000 | |
Outstanding borrowing | 0 | |
Unused Revolving credit | 120,073,000 | |
Unrestricted retained earnings | $ 146,434,000 | $ 119,891,000 |
Other, Net - Other Net in Conso
Other, Net - Other Net in Consolidated Statements of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Other Nonoperating Income Expense [Abstract] | ||||
Foreign exchange gain (loss) | $ (464) | $ 101 | $ (775) | $ 99 |
Investment income | 60 | 23 | 152 | 146 |
Realized and unrealized gains (loss) on investments | 101 | 111 | (205) | 642 |
Other, net | $ (303) | $ 235 | $ (828) | $ 887 |
Sale of Product Line - Addition
Sale of Product Line - Additional Information (Detail) - Specialty polyurethane systems product line (kits) [Member] - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jan. 31, 2015 | |
Sale Of Product Line [Line Items] | ||
Sale of product line for cash | $ 3,262,000 | |
Pretax gain from the kits sale | $ 2,862,000 |
Business Restructuring - Additi
Business Restructuring - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($) | Jun. 30, 2016USD ($)Employees | |
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring expenses | $ 1,061,000 | $ 1,061,000 | ||
Ethoxylation Assets [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Depreciation expense | $ 1,084,000 | |||
Longford Mills [Member] | Surfactants [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Number positions eliminated | Employees | 30 | |||
Restructuring expenses | 1,061,000 | $ 1,061,000 | ||
Depreciation expense | $ 843,000 | $ 1,927,000 | ||
Longford Mills [Member] | Surfactants [Member] | Scenario Forecast [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring expenses | $ 3,000,000 | |||
Depreciation expense | $ 2,600,000 |
TIORCO, LLC Joint Venture - Add
TIORCO, LLC Joint Venture - Additional Information (Detail) | Mar. 31, 2016USD ($) |
TIORCO LLC [Member] | |
Schedule Of Equity Method Investments [Line Items] | |
Cash investment | $ 2,900,000 |
Acquisition - Additional Inform
Acquisition - Additional Information (Detail) | Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 15, 2015USD ($)t |
Business Acquisition [Line Items] | |||
Goodwill | $ 11,292,000 | $ 11,265,000 | |
Procter and Gamble Company [Member] | Brazil [Member] | |||
Business Acquisition [Line Items] | |||
Capacity of production facility purchased in connection with acquisition | t | 30,000 | ||
Acquisition purchase price | $ 5,133,000 | ||
Acquisition of property, plant and equipment | 6,007,000 | ||
Acquisition of liabilities | 874,000 | ||
Acquisition of intangible assets | 0 | ||
Goodwill | $ 0 |
Recent Accounting Pronounceme67
Recent Accounting Pronouncements - Additional Information (Detail) | Dec. 31, 2015USD ($) |
Accounting Policies [Abstract] | |
Unamortized debt issuance cost | $ 1,269,000 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - Tebras And PBC [Member] - Subsequent Event [Member] - Surfactants [Member] - Brazil [Member] | Jul. 20, 2016USD ($)Customert |
Subsequent Event [Line Items] | |
Combined entities annual sales | $ | $ 32,000,000 |
Capacity of production facility purchased in connection with acquisition | t | 25,000 |
Minimum [Member] | |
Subsequent Event [Line Items] | |
Number of customers | Customer | 1,200 |