Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 24, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | SCL | |
Entity Registrant Name | STEPAN CO | |
Entity Central Index Key | 0000094049 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 22,613,951 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | |||
Income Statement [Abstract] | ||||
Net Sales | $ 489,170 | $ 499,335 | ||
Cost of Sales | [1] | 404,561 | 408,137 | |
Gross Profit | [1] | 84,609 | 91,198 | |
Operating Expenses: | ||||
Selling | 13,969 | 14,890 | ||
Administrative | 19,306 | 19,439 | ||
Research, development and technical services | 13,390 | 13,614 | ||
Deferred compensation expense | 7,473 | 1,614 | ||
Total Operating expenses | 54,138 | 49,557 | ||
Business restructuring expenses (Note 17) | (733) | (358) | ||
Operating Income | [1],[2] | 29,738 | 41,283 | |
Other Income (Expense): | ||||
Interest, net | (1,853) | (3,151) | ||
Other, net (Note 16) | 3,145 | 1,160 | ||
Nonoperating Income (Expense), Total | 1,292 | (1,991) | ||
Income Before Provision for Income Taxes | [1],[2] | 31,030 | 39,292 | |
Provision for Income Taxes | [1] | 6,052 | 7,347 | |
Net Income | [1],[2] | 24,978 | 31,945 | [3] |
Net Loss Attributable to Noncontrolling Interests (Note 3) | 6 | 7 | ||
Net Income Attributable to Stepan Company | [1],[2] | $ 24,984 | $ 31,952 | |
Net Income Per Common Share Attributable to Stepan Company (Note 11): | ||||
Basic | [1],[2] | $ 1.08 | $ 1.38 | |
Diluted | [1],[2] | $ 1.07 | $ 1.37 | |
Shares Used to Compute Net Income Per Common Share Attributable to Stepan Company (Note 11): | ||||
Basic | 23,099 | 23,082 | ||
Diluted | 23,332 | 23,389 | ||
[1] | The 2018 amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from the last in, first out (LIFO) basis to the first in, first out (FIFO) basis. | |||
[2] | The 2018 amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. | |||
[3] | The retained earnings and net income amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | |||
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | [1],[2] | $ 24,978 | $ 31,945 | [3] |
Other comprehensive income : | ||||
Foreign currency translation adjustments (Note 12) | [4] | 3,707 | 8,817 | |
Defined benefit pension adjustments, net of tax (Note 12) | 543 | 753 | ||
Derivative instrument activity, net of tax (Note 12) | (2) | (3) | ||
Total other comprehensive income | 4,248 | 9,567 | ||
Comprehensive income | [1] | 29,226 | 41,512 | |
Comprehensive income attributable to noncontrolling interests (Note 3) | (14) | (25) | ||
Comprehensive income attributable to Stepan Company | [1] | $ 29,212 | $ 41,487 | |
[1] | The 2018 amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. | |||
[2] | The 2018 amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from the last in, first out (LIFO) basis to the first in, first out (FIFO) basis. | |||
[3] | The retained earnings and net income amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. | |||
[4] | Includes foreign currency translation adjustments related to noncontrolling interest. |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | ||
Current Assets: | ||||
Cash and cash equivalents | $ 269,459 | $ 300,194 | ||
Receivables, net | 298,932 | 280,025 | ||
Inventories(1) (Note 2)(Note 7) | 215,028 | 231,528 | ||
Other current assets | 24,717 | 22,146 | ||
Total current assets | [1] | 808,136 | 833,893 | |
Property, Plant and Equipment: | ||||
Cost | 1,679,669 | 1,666,790 | ||
Less: Accumulated depreciation | (1,074,309) | (1,057,898) | ||
Property, plant and equipment, net | 605,360 | 608,892 | ||
Goodwill, net | 22,808 | 22,954 | ||
Other intangible assets, net | 13,417 | 14,244 | ||
Long-term investments (Note 4) | 25,615 | 25,082 | ||
Operating lease assets | 40,332 | |||
Other non-current assets | [1] | 10,332 | 9,549 | |
Total assets | [1] | 1,526,000 | 1,514,614 | |
Current Liabilities: | ||||
Current maturities of long-term debt (Note 15) | 32,799 | 37,058 | ||
Accounts payable | 175,641 | 205,954 | ||
Accrued liabilities | 87,008 | 95,570 | ||
Total current liabilities | 295,448 | 338,582 | ||
Deferred income taxes | [1] | 24,158 | 24,961 | |
Long-term debt, less current maturities (Note 15) | 239,063 | 239,022 | ||
Non-current operating lease liabilities | 31,361 | |||
Other non-current liabilities | 103,749 | 103,864 | ||
Commitments and Contingencies (Note 9) | ||||
Equity: | ||||
Common stock, $1 par value; authorized 60,000,000 shares; Issued 26,440,690 shares in 2019 and 26,308,668 shares in 2018 | 26,441 | 26,309 | ||
Additional paid-in capital | 185,911 | 182,881 | ||
Accumulated other comprehensive loss (Note 12) | [2] | (142,580) | (141,483) | |
Retained earnings | [1],[2] | 861,773 | 837,107 | |
Less: Common treasury stock, at cost, 3,826,739 shares in 2019 and 3,803,043 shares in 2018 | (100,098) | (97,389) | ||
Total Stepan Company stockholders’ equity | [1] | 831,447 | 807,425 | |
Noncontrolling interests (Note 3) | 774 | 760 | ||
Total equity | [1] | 832,221 | 808,185 | [3] |
Total liabilities and equity | [1] | $ 1,526,000 | $ 1,514,614 | |
[1] | The 2018 amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. | |||
[2] | The 2019 amounts for the noted line items include an adjustment related to the Company’s first quarter 2019 adoption of ASU No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. | |||
[3] | The retained earnings and net income amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
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 | 26,440,690 | 26,308,668 |
Treasury stock, shares | 3,826,739 | 3,803,043 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | |||
Cash Flows From Operating Activities | ||||
Net income | [1],[2] | $ 24,978 | $ 31,945 | [3] |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 19,403 | 19,948 | ||
Deferred compensation | 7,473 | 1,614 | ||
Realized and unrealized gains on long-term investments | (2,404) | (97) | ||
Stock-based compensation | 2,596 | 2,232 | ||
Deferred income taxes | [1] | (1,857) | 756 | |
Other non-cash items | 1,443 | 31 | ||
Changes in assets and liabilities: | ||||
Receivables, net | (17,434) | (24,225) | ||
Inventories | [1] | 16,231 | (10,621) | |
Other current assets | (3,247) | (684) | ||
Accounts payable and accrued liabilities | (42,279) | (19,518) | ||
Pension liabilities | (392) | (116) | ||
Environmental and legal liabilities | 6 | (225) | ||
Deferred revenues | (81) | (81) | ||
Net Cash Provided By Operating Activities | 4,436 | 959 | ||
Cash Flows From Investing Activities | ||||
Expenditures for property, plant and equipment | (25,741) | (27,358) | ||
Business acquisition (Note 18) | (21,475) | |||
Other, net | 2,037 | 1,781 | ||
Net Cash Used In Investing Activities | (23,704) | (47,052) | ||
Cash Flows From Financing Activities | ||||
Revolving debt and bank overdrafts, net | (4,230) | 79 | ||
Dividends paid | (5,643) | (5,092) | ||
Company stock repurchased | (77) | (2,500) | ||
Stock option exercises | 1,890 | 3,155 | ||
Other, net | (2,718) | (4,395) | ||
Net Cash Used In Financing Activities | (10,778) | (8,753) | ||
Effect of Exchange Rate Changes on Cash | (689) | 533 | ||
Net Decrease in Cash and Cash Equivalents | (30,735) | (54,313) | ||
Cash and Cash Equivalents at Beginning of Period | 300,194 | 298,894 | ||
Cash and Cash Equivalents at End of Period | 269,459 | 244,581 | ||
Supplemental Cash Flow Information | ||||
Cash payments of income taxes, net of refunds/payments | 3,018 | 3,345 | ||
Cash payments of interest | $ 2,131 | $ 2,071 | ||
[1] | The 2018 amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. | |||
[2] | The 2018 amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from the last in, first out (LIFO) basis to the first in, first out (FIFO) basis. | |||
[3] | The retained earnings and net income amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. |
Condensed Consolidated Financia
Condensed Consolidated Financial Statements | 3 Months Ended |
Mar. 31, 2019 | |
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 (the 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 (GAAP) have been condensed or omitted pursuant to such rules and regulations, although management believes that the disclosures are adequate and make the information presented not misleading. In the opinion of management, all adjustments, consisting only of normal recurring accruals, necessary to present fairly the Company’s financial position as of March 31, 2019, and its results of operations and cash flows for the three months ended March 31, 2019 and 2018, 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 2018 Annual Report on Form 10-K. |
Change In Method of Accounting
Change In Method of Accounting for Inventory Valuation | 3 Months Ended |
Mar. 31, 2019 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Change in Method of Accounting for Inventory Valuation | 2. CHANGE IN METHOD OF ACCOUNTING FOR INVENTORY VALUTION On January 1, 2019, the Company elected to change its method of accounting for U.S. inventories from the LIFO basis to the FIFO basis. Total U.S. inventories accounted for using the LIFO cost flow assumption, prior to the accounting method change, comprised 68 percent of the Company’s total inventories as of December 31, 2018. Non-U.S. inventories have historically been maintained on the FIFO basis. The Company believes that this change to the FIFO method of inventory valuation is preferable as it provides a better matching of costs with the physical flow of goods, more accurately reflects the current market value of inventory presented on the Company’s consolidated balance sheets, standardizes the Company’s inventory valuation methodology and improves comparability with the Company’s industry peers. In accordance with ASC 250, Accounting Changes and Error Corrections The following tables present the prior year financial statement line items that have been affected by the retrospective change in accounting principle: Income Statement (In thousands, except per share amounts) Three Months Ended March 31, 2018 As originally reported under LIFO Effect of change As adjusted under FIFO Cost of Sales $ 409,765 $ (1,628 ) $ 408,137 Gross Profit 89,570 1,628 91,198 Operating Income 39,655 1,628 41,283 Income Before Provision for Income Taxes 37,664 1,628 39,292 Provision for Income Taxes 6,948 399 7,347 Net Income 30,716 1,229 31,945 Net Income Attributable to Stepan Company 30,723 1,229 31,952 Net Income Per Diluted Common Share Attributable to Stepan Company $ 1.31 $ 0.06 $ 1.37 Balance Sheet (In thousands) December 31, 2018 As originally reported under LIFO Effect of change As adjusted under FIFO Inventories $ 200,165 $ 31,363 $ 231,528 Other Non-Current Assets 10,964 (1,415 ) 9,549 Total Assets 1,484,666 29,948 1,514,614 Deferred Income Taxes $ 18,672 $ 6,289 $ 24,961 Retained Earnings 813,448 23,659 837,107 Total Liabilities and Equity 1,484,666 29,948 1,514,614 Statement of Cash Flows (In thousands) Three Months Ended March 31, 2018 As originally reported under LIFO Effect of change As adjusted under FIFO Net Income $ 30,716 $ 1,229 $ 31,945 Deferred Income Taxes 357 399 756 Change in Assets and Liabilities: Inventories (8,993 ) (1,628 ) (10,621 ) The following tables present what current year financial statement line items would have been had the Company not changed its method of accounting for U.S. inventories from LIFO to FIFO basis: Income Statement (In thousands, except per share amounts) Three Months Ended March 31, 2019 As reported under FIFO Effect of change As computed under LIFO Cost of Sales $ 404,561 $ 1,500 $ 406,061 Gross Profit 84,609 (1,500 ) 83,109 Operating Income 29,738 (1,500 ) 28,238 Income Before Provision for Income Taxes 31,030 (1,500 ) 29,530 Provision for Income Taxes 6,052 (368 ) 5,684 Net Income 24,978 (1,132 ) 23,846 Net Income Attributable to Stepan Company 24,984 (1,132 ) 23,852 Net Income Per Diluted Common Share Attributable to Stepan Company $ 1.07 $ (0.05 ) $ 1.02 Balance Sheet (In thousands) March 31, 2019 As reported under FIFO Effect of change As computed under LIFO Inventories $ 215,028 $ (32,863 ) $ 182,165 Other Non-Current Assets 10,332 1,483 11,815 Total Assets 1,526,000 (31,380 ) 1,494,620 Deferred Income Taxes $ 24,158 $ (6,589 ) $ 17,569 Retained Earnings 861,773 (24,791 ) 836,982 Total Liabilities and Equity 1,526,000 (31,380 ) 1,494,620 Statement of Cash Flows (In thousands) Three Months Ended March 31, 2019 As reported under FIFO Effect of change As computed under LIFO Net Income $ 24,978 $ (1,132 ) $ 23,846 Deferred Income Taxes (1,857 ) (368 ) (2,225 ) Change in Assets and Liabilities: Inventories 16,231 1,500 17,731 |
Reconciliations of Equity
Reconciliations of Equity | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Reconciliations of Equity | 3. RECONCILIATIONS OF EQUITY Below are reconciliations of total equity, Company equity and equity attributable to noncontrolling interests for the three months ended March 31, 2019 and 2018: (In thousands, except share and per share amounts) Total Common Stock Additional Paid-in Capital Treasury Stock Accumulated Other Comprehensive Income (Loss) Retained Earnings Noncontrolling Interest (1) Balance, December 31, 2018 (2) $ 808,185 $ 26,309 $ 182,881 $ (97,389 ) $ (141,483 ) $ 837,107 $ 760 Issuance of 38,706 shares of common stock under stock option plan 1,890 39 1,851 — — — — Purchase of 900 shares of common stock (77 ) — — (77 ) — — — Stock-based and deferred compensation (1,360 ) 93 1,179 (2,632 ) — — — Net income 24,978 — — — — 24,984 (6 ) Other comprehensive income 4,248 — — — 4,228 — 20 Cash dividends paid: Common stock ($0.25 per share) (5,643 ) — — — — (5,643 ) — Other (3) — — — — (5,325 ) 5,325 — Balance, March 31, 2019 $ 832,221 $ 26,441 $ 185,911 $ (100,098 ) $ (142,580 ) $ 861,773 $ 774 (In thousands, except share and per share amounts) Total Common Stock Additional Paid-in Capital Treasury Stock Accumulated Other Comprehensive Income (Loss) Retained Earnings Noncontrolling Interest (1) Balance, December 31, 2017 (2) $ 766,218 $ 26,071 $ 170,408 $ (78,561 ) $ (99,563 ) $ 747,045 $ 818 Issuance of 77,474 shares of common stock under stock option plan 3,155 77 3,078 — — — — Purchase of 6,107 shares of common stock (2,500 ) — — (2,500 ) — — — Stock-based and deferred compensation (1,136 ) 120 1,725 (2,981 ) — — — Net income (2) 31,945 — — — — 31,952 (7 ) Other comprehensive income 9,567 — — — 9,535 — 32 Cash dividends paid: Common stock ($0.23 per share) (5,092 ) — — — — (5,092 ) Other (4) (198 ) — — — — (198 ) — Balance, March 31, 2018 $ 801,959 $ 26,268 $ 175,211 $ (84,042 ) $ (90,028 ) $ 773,707 $ 843 (1) (2) . (3) Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (4) Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4 . FAIR VALUE MEASUREMENTS The following were the financial instruments held by the Company at March 31, 2019, and December 31, 2018, 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 contracts discussed in Note 5. 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. See the table below that describes financial assets and liabilities measured on a recurring basis 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 10). Fair value and carrying value were the same because the mutual fund assets were recorded at fair value. 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 within level 2 of the fair value hierarchy. At March 31, 2019, and December 31, 2018, the fair values and related carrying values of debt, including current maturities, were as follows (the fair value and carrying value amounts are presented without regard to unamortized debt issuance costs of $938,000 (In thousands) March 31, 2019 December 31, 2018 Fair value $ 272,625 $ 274,119 Carrying value 272,800 277,058 The following tables present financial assets and liabilities measured on a recurring basis at fair value as of March 31, 2019, and December 31, 2018, and the level within the fair value hierarchy in which the fair value measurements fall: (In thousands) March 2019 Level 1 Level 2 Level 3 Mutual fund assets $ 25,615 $ 25,615 $ — $ — Derivative assets: Foreign currency contracts 31 — 31 — Total assets at fair value $ 25,646 $ 25,615 $ 31 $ — Derivative liabilities: Foreign currency contracts $ 61 $ — $ 61 $ — (In thousands) December 2018 Level 1 Level 2 Level 3 Mutual fund assets $ 25,082 $ 25,082 $ — $ — Derivative assets: Foreign currency contracts 185 — 185 — Total assets at fair value $ 25,267 $ 25,082 $ 185 $ — Derivative liabilities: Foreign currency contracts $ 10 $ — $ 10 $ — |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 5 . 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 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 March 31, 2019, and December 31, 2018, the Company had open forward foreign currency exchange contracts, all with durations of one to three months, to buy or sell foreign currencies with U.S. dollar equivalent amounts of $24,164,006 and $28,870,081, respectively. The fair values of the derivative instruments held by the Company on March 31, 2019, and December 31, 2018, are disclosed in Note 4. Derivative instrument gains and losses for the three-month periods ended March 31, 2019 and 2018, were immaterial. For amounts reclassified out of accumulated other comprehensive income (loss) (AOCI) into earnings for the three-month periods ended March 31, 2019 and 2018, see Note 12. |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation | 6 . STOCK-BASED COMPENSATION On March 31, 2019, the Company had stock options, stock awards and stock appreciation rights (SARs) outstanding under its 2011 Incentive Compensation Plan. SARs granted prior to 2015 are cash-settled, and SARs granted after 2014 are stock-settled. Stock options and SARs granted prior to 2017 generally cliff vested after two years. Starting in 2017, stock options and SARs have a three-year graded vesting feature, with one-third of the awards vesting each year. The Company has elected the straight-line method of expense attribution for the stock options and SARs with the graded vesting feature. Compensation expense recorded for all stock options, stock awards and SARs was as follows: (In thousands) Three Months Ended March 31 2019 2018 $ 2,596 $ 2,232 The quarter-over-quarter increase in stock-based compensation expense was primarily attributable to cash-settled SARs. The quarterly increase in cash-settled SARs compensation expense reflects a larger rise in the market value of Company stock during the first quarter of 2019 versus the first quarter of 2018. This increase was partially offset by a quarter-over-quarter decrease in stock-based compensation expense related to performance stock awards. Unrecognized compensation costs for stock options, stock awards and SARs were as follows: (In thousands) March 31, 2019 December 31, 2018 Stock options $ 2,935 $ 1,655 Stock awards 5,712 3,180 SARs 6,260 3,566 The increases in unrecognized compensation costs for stock options, stock awards and SARs reflected the 2019 grants of: Shares Stock options 67,628 Stock awards (at target) 41,528 SARs 146,613 The unrecognized compensation costs at March 31, 2019, are expected to be recognized over weighted-average periods of 2.2 years for stock options, stock awards and SARs. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | 7 . INVENTORIES The composition of inventories at March 31, 2019, and December 31, 2018, was as follows: (In thousands) March 31, 2019 December 31, 2018 As Adjusted Finished goods $ 154,758 $ 163,617 Raw materials 60,270 67,911 Total inventories $ 215,028 $ 231,528 Effective January 1, 2019, the Company elected to change its method of accounting for U.S. inventories from the LIFO basis to the FIFO basis. Non-U.S. inventories have historically been maintained on the FIFO basis. Prior period financial statements have been adjusted to reflect what results would have been had the Company always used the FIFO method of inventory valuation for U.S. inventories. See Note 2 for additional details. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | 8. LEASES The Company adopted ASU No. 2016-02, Leases (Topic 842) Leases (Topic 842) As the Company elected to apply the standard at adoption as allowed under ASU No. 2018-11, the Company did not retrospectively adjust prior periods presented. The Company elected the practical expedient to not separate non-lease components from lease components for all asset classes and the practical expedient which permits a Company to not reassess prior conclusions about lease identification, lease classifications and initial direct costs. The Company did not elect the use-of-hindsight or the practical expedient pertaining to land easements, the latter not being applicable to the Company. In addition, the Company made an accounting policy election to keep leases with an initial term of 12 months or less off the balance sheet. Upon adoption of ASC 842, the Company recognized $42.4 million of ROU assets and related operating lease liabilities on its balance sheet. There was no cumulative catch-up adjustment made to beginning retained earnings. Significant judgments used by the Company to determine whether a contract is or contains a lease include: (i) determining whether any explicitly or implicitly identified assets have been identified in the contract and (ii) determining whether the Company obtains substantially all of the economic benefits from the use of the underlying asset and directs how and for what purpose the asset is used during the term of the contract. The Company’s operating leases are primarily comprised of railcars, real estate, storage tanks, autos, trailers and manufacturing/office equipment. Railcars and real estate comprise approximately 49 percent and 36 percent, respectively, of the Company’s consolidated ROU asset balance. With the exception of real estate, typical lease terms range from one to ten years. Real estate lease terms typically range from one to fifty years. The Company’s two principal real estate leases relate to land leases in the Philippines and Singapore. The Company is not currently party to any leases that have not commenced but that have created significant rights and obligations for the Company. Variability associated with the Company’s lease obligations typically relates to: (i) additional charges based on usage (i.e. railcar mileage in excess of a specified amount) and, (ii) periodic increases associated with Consumer Price Index (“CPI”) changes (i.e. land rental payments). Appropriate CPI indexes at the inception of a lease are reflected in the Company’s lease liability balances whereas variability based on usage is typically excluded from lease liability amounts. Some of the Company’s leases include options to extend the lease term but these are typically not recognized as part of the ROU asset or lease liability at inception unless it is reasonably certain the renewal option will be exercised. Determining whether a renewal option is reasonably certain to be exercised requires judgment based on the existing facts and circumstances as well as expectations about future business needs. Renewal options are typically re-assessed within one year or less prior to lease termination when the Company is able to more accurately forecast future business needs. Some of the Company’s lease contracts include options to terminate leases early but these are typically not considered unless it is reasonably certain the early termination option will be exercised. The Company’s leases do not typically carry any residual value guarantees and typically payment is not considered probable when such guarantees are included in the contract. Initial implementation of ASU No. 2016-02, Leases (Topic 842) As most of the Company’s leases do not provide an implicit borrowing rate, the Company uses its incremental borrowing rate (IBR) based on the information available at the commencement date in determining the present value of lease payments. IBRs were specifically determined for the United States, the Philippines, Singapore and China, typically for five-year increments. The U.S. IBR was used for all other countries as the leases in these countries are not material. The total value of leases that reside in the four countries identified above represents approximately 93 percent of the Company’s consolidated ROU asset balance. (In thousands) March 31, 2019 Lease Cost Operating lease cost $ 2,688 Short-term lease cost 970 Variable lease cost 348 Total lease cost $ 4,006 Other Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow from operating leases $ 2,696 Right-of-use assets obtained in exchange for new operating lease liabilities 294 Weighted-average remaining lease term-operating leases 9 Years Weighted-average discount rate-operating leases 3.9 % (In thousands) Undiscounted Cash Flows: 2019 (excluding the three months ended March 31, 2019) $ 7,870 2020 9,192 2021 6,427 2022 5,317 2023 4,145 Subsequent to 2023 17,231 Total Undiscounted Cash Flows $ 50,182 Less: Imputed interest (9,846 ) Present value $ 40,336 Current operating lease liabilities (1) 8,975 Non-current operating lease liabilities 31,361 Total lease liabilities $ 40,336 (1) This item is included in Accrued liabilities line on the Company’s Condensed Consolidated Balance Sheet. ASC 840 Disclosure As required in transition, the table below summarizes the Company’s future minimum lease payments at December 31, 2018 under ASC 840. (In thousands) Year 2019 $ 9,740 2020 8,294 2021 6,027 2022 5,242 2023 4,101 Subsequent to 2023 16,593 Total minimum future rental payments $ 49,997 |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingencies | 9 . CONTINGENCIES There are a variety of legal proceedings pending or threatened against the Company that occur in the normal course of the Company’s business, the majority of which relate to environmental matters. 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) as well as comparable regulations applicable to the Company’s foreign locations. Over the years, the Company has received requests for information related to or has been named by the government authorities as a potentially responsible party (PRP) at a number of 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 is likely to incur with respect to these sites. As of March 31, 2019, the Company estimated a range of possible environmental and legal losses of $23.4 million to $44.7 million. Within the range of possible environmental and legal losses, currently management has concluded that there are no amounts within the ranges that are more likely to occur than any other amounts in the ranges and, thus, has accrued at the lower end of the ranges; that accrual totaled $23.4 million at both March 31, 2019 and December 31, 2018. Cash expenditures related to legal and environmental matters approximated $0.2 million for each of the three-month periods ended March 31, 2019 and 2018. 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. 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, management believes that the Company has no liability at these sites and that these matters, individually and in the aggregate, will not have a material effect on the Company’s financial position. 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. Following are summaries of the material contingencies at March 31, 2019: 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 the U.S. 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 (RI/FS), and on September 24, 2014, the 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 is reasonable having considered the range of estimated cost of remediation for the Maywood site. The 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, if a groundwater ROD is issued 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 U.S. 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 a lawsuit in the U.S. District Court for the District of New Jersey that involved the D’Imperio Property Site located in New Jersey. In 2016, the PRPs were provided with updated remediation cost estimates, which were considered in the Company’s determination of its range of estimated possible losses and liability balance. The changes in range of possible losses and liability balance were immaterial. Remediation work is continuing at this site. Based on current information, the Company believes that its recorded liability is reasonable having considered the range of estimated cost of remediation for the D’Imperio 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. Wilmington Site The Company is currently contractually obligated to contribute to the response costs associated with the Company’s formerly-owned site in 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. The Company has paid the current owner $2.7 million for the Company’s portion of environmental response costs through March 31, 2019. 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. Other U.S. Sites Through the regular environmental monitoring of its plant production sites, the Company discovered levels of chemical contamination that were above thresholds allowed by law at two of its U.S plants. The Company voluntarily reported its results to the applicable state environmental agencies. As a result, the Company is required to perform self-remediation of the affected areas. In the fourth quarter of 2016, the Company recognized a charge for the estimated cost of remediating the sites. Based on current information, the Company believes that its recorded liability for the remediation of the affected areas is appropriate based on estimate of expected costs. However, actual costs could differ from current estimates. |
Postretirement Benefit Plans
Postretirement Benefit Plans | 3 Months Ended |
Mar. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Postretirement Benefit Plans | 10 . POSTRETIREMENT BENEFIT PLANS Defined Benefit Pension Plans The Company sponsors various funded qualified and unfunded non-qualified defined benefit pension plans, the most significant of which cover employees in the U.S. and U.K. locations. The U.S. and U.K. defined benefit pension plans are frozen and service benefits are no longer being accrued. Components of Net Periodic Benefit Cost UNITED STATES UNITED KINGDOM (In thousands) Three Months Ended March 31 Three Months Ended March 31 2019 2018 2019 2018 Interest cost $ 1,661 $ 1,539 $ 142 $ 148 Expected return on plan assets (2,361 ) (2,321 ) (201 ) (231 ) Amortization of net actuarial loss 652 937 63 57 Net periodic benefit cost $ (48 ) $ 155 $ 4 $ (26 ) 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 is not required to make contributions to the funded U.S. qualified defined benefit plans. Approximately $312,000 is expected to be paid related to the unfunded non-qualified plans in 2019. Of such amount, $143,000 had been paid related to the non-qualified plans as of March 31, 2019. U.K. Plan The Company’s U.K. subsidiary expects to contribute approximately $476,000 to its defined benefit pension plan in 2019. Of such amount, $173,000 had been contributed to the plan as of March 31, 2019. Defined Contribution Plans The Company sponsors retirement savings defined contribution plans that cover eligible U.S. and U.K. employees. The Company’s U.S. retirement plans include two qualified plans, one of which is a 401(k) plan and one of which is an employee stock ownership plan, and one non-qualified supplemental executive plan. In the three months ended March 31, 2019 and 2018, the Company made profit sharing contributions into the qualified retirement plans for U.S. employees and for certain non-U.S. employees. Profit sharing contributions were determined using a formula applied to Company earnings. In 2018, profit sharing contributions for U.S. employees, who received the majority of profit sharing contributions, were made partly in cash paid to the 401(k) plan and partly in Company common stock. In 2019, profit sharing contributions were made in Company common stock. Profit sharing contributions are allocated to participant accounts on the basis of participant base earnings. Defined contribution plan expenses for the Company’s qualified contribution plans were as follows: (In thousands) Three Months Ended March 31 2019 2018 Retirement savings contributions $ 2,409 $ 1,757 Profit sharing contributions 882 942 Total defined contribution plan expenses $ 3,291 $ 2,699 The Company has a rabbi trust to fund the obligations of its non-qualified supplemental executive defined contribution plans (supplemental plans). The trust comprises various mutual fund investments selected by the participants of the supplemental plans. In accordance with the accounting guidance for rabbi trust arrangements, the assets of the trust and the obligations of the supplemental plans are reported on the Company’s consolidated balance sheets. The Company elected the fair value option for the mutual fund investment assets so that offsetting changes in the mutual fund values and defined contribution plan obligations would be recorded in earnings in the same period. Therefore, the mutual funds are reported at fair value with any subsequent changes in fair value recorded in the consolidated statements of income. The liabilities related to the supplemental plans increase (i.e., supplemental plan expense is recognized) when the value of the trust assets appreciates and decrease when the value of the trust assets declines (i.e., supplemental plan income is recognized). At March 31, 2019, the balance of the trust assets was $1,677,000, which equaled the balance of the supplemental plan liabilities (see the long-term investments section in Note 4 for further information regarding the Company’s mutual fund assets). |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 11 . EARNINGS PER SHARE Below are the computations of basic and diluted earnings per share for the three months ended March 31, 2019 and 2018: (In thousands, except per share amounts) Three Months Ended March 31 2019 2018 As Adjusted Computation of Basic Earnings per Share Net income attributable to Stepan Company (1) $ 24,984 $ 31,952 Weighted-average number of common shares outstanding 23,099 23,082 Basic earnings per share (1) $ 1.08 $ 1.38 Computation of Diluted Earnings per Share Net income attributable to Stepan Company (1) $ 24,984 $ 31,952 Weighted-average number of shares outstanding 23,099 23,082 Add weighted-average net shares from assumed exercise of options (under treasury stock method) (2) 92 119 Add weighted-average net shares related to unvested stock awards (under treasury stock method) 3 2 Add weighted-average net shares from assumed exercise of SARs (under treasury stock method) (2) 108 122 Add weighted-average contingently issuable net shares related to performance stock awards (under treasury stock method) 30 64 Weighted-average shares applicable to diluted earnings 23,332 23,389 Diluted earnings per share (1) $ 1.07 $ 1.37 (1) The (2) |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 12. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) In conjunction with the adoption of ASU 2018-02, the Company reclassified $5,325,000 of other comprehensive loss, associated with post retirement plans, from accumulated other comprehensive loss to retained earnings effective January 1, 2019. Below is the change in the Company’s AOCI balance by component (net of income taxes) for the three months ended March 31, 2019 and 2018: (In thousands) Foreign Currency Translation Adjustments Defined Benefit Pension Plan Adjustments Cash Flow Hedge Adjustments Total Balance at December 31, 2017 $ (70,561 ) $ (29,093 ) $ 91 $ (99,563 ) Other comprehensive income before reclassifications 8,785 — — 8,785 Amounts reclassified from AOCI — 753 (3 ) 750 Net current-period other comprehensive income 8,785 753 (3 ) 9,535 Balance at March 31, 2018 $ (61,776 ) $ (28,340 ) $ 88 $ (90,028 ) Balance at December 31, 2018 $ (108,481 ) $ (33,083 ) $ 81 $ (141,483 ) Other comprehensive income before reclassifications 3,687 — — 3,687 Amounts reclassified from AOCI — 543 (2 ) 541 Reclassification adjustment related to the Tax Act (1) — (5,325 ) — (5,325 ) Net current-period other comprehensive income 3,687 (4,782 ) (2 ) (1,097 ) Balance at March 31, 2019 $ (104,794 ) $ (37,865 ) $ 79 $ (142,580 ) (1) Represents reclassification of the stranded tax effects resulting from the U.S. Tax Cuts and Jobs Act (Tax Act) from accumulated other comprehensive income (loss) to retained earnings in accordance with ASU 2018-02. See Note 19 for more details. Information regarding the reclassifications out of AOCI for the three month periods ended March 31, 2019 and 2018, is displayed below: (In thousands) Amount Reclassified from AOCI (a) AOCI Components Three Months Ended March 31 Affected Line Item in Consolidated Statements of Income 2019 2018 Amortization of defined benefit pension actuarial losses $ (715 ) $ (994 ) (b) 172 241 Tax benefit $ (543 ) $ (753 ) Net of tax Gains and losses on cash flow hedges: Foreign exchange contracts 2 3 Cost of sales 2 3 Total before tax — — Tax benefit $ 2 $ 3 Net of tax Total reclassifications for the period $ (541 ) $ (750 ) 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 10 for additional details). |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | 13. SEGMENT REPORTING The Company has three reportable segments: Surfactants, Polymers and Specialty Products. Net sales by segment for the three months ended March 31, 2019 and 2018, were as follows: (In thousands) Three Months Ended March 31 2019 2018 Segment Net Sales Surfactants $ 349,650 $ 358,940 Polymers 120,179 121,933 Specialty Products 19,341 18,462 Total $ 489,170 $ 499,335 Segment operating income and reconciliations of segment operating income to consolidated income before income taxes for the three months ended March 31, 2019 and 2018, are summarized below: (In thousands) Three Months Ended March 31 2019 2018 As Adjusted Segment Operating Income Surfactants (1) $ 37,167 $ 41,468 Polymers (1) 12,105 17,305 Specialty Products 3,131 (350 ) Segment operating income (1) 52,403 58,423 Business restructuring (733 ) (358 ) Unallocated corporate expenses (2) (21,932 ) (16,782 ) Consolidated operating income (1) 29,738 41,283 Interest expense, net (1,853 ) (3,151 ) Other, net 3,145 1,160 Consolidated income before income taxes (1) $ 31,030 $ 39,292 (1) . (2) 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. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contracts with Customers | 14. REVENUE FROM CONTRACTS WITH CUSTOMERS In the majority of instances the Company deems a contract with a customer to exist when a purchase order is received from a customer for a specified quantity of product or products and the Company acknowledges receipt of such purchase order. In some instances the Company has entered into manufacturing supply agreements with customers but these agreements typically do not bind a customer to any purchase volume requirements and thus an obligation is not created until the customer submits a purchase order to the Company. The Company’s contracts typically have a single performance obligation that is satisfied at the time a product is shipped and control passes to the customer. For a small portion of the business, performance obligations are deemed satisfied when product is delivered to a customer location. As of March 31, 2019, the Company did not have any contract assets or contract liabilities. A contract liability would typically arise when an advance or deposit is received from a customer before the Company recognizes revenue. In practice, this is extremely rare as it would require a customer to make a payment prior to a performance obligation being satisfied. If such a situation did arise the Company would maintain a deferred revenue liability until the time a performance obligation has been satisfied. The Company did not recognize any revenue in the current period from any pre-existing contract liability balance. The tables below provides a geographic disaggregation of net sales for the three months ended March 31, 2019 and 2018. The Company’s business segmentation by geographic region most effectively captures the nature and economic characteristics of the Company’s revenue streams impacted by economic factors. For the Three Months Ended March 31, 2019 (In thousands) Surfactants Polymers Specialty Total Geographic Market North America $ 214,297 $ 71,323 $ 16,025 $ 301,645 Europe 71,478 42,105 3,316 116,899 Latin America 50,812 197 — 51,009 Asia 13,063 6,554 — 19,617 Total $ 349,650 $ 120,179 $ 19,341 $ 489,170 For the Three Months Ended March 31, 2018 (In thousands) Surfactants Polymers Specialty Total Geographic Market North America $ 220,405 $ 73,474 $ 14,814 $ 308,693 Europe 78,371 41,784 3,648 123,803 Latin America 41,688 827 — 42,515 Asia 18,476 5,848 — 24,324 Total $ 358,940 $ 121,933 $ 18,462 $ 499,335 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | 15. DEBT At March 31, 2019, and December 31, 2018, debt comprised the following: (In thousands) Maturity Dates March 31, 2019 December 31, 2018 Unsecured private placement notes 3.95% (net of unamortized debt issuance cost of $349 and $360 for 2019 and 2018, respectively) 2021-2027 $ 99,651 $ 99,640 3.86% (net of unamortized debt issuance cost of $333 and $347 for 2019 and 2018, respectively) 2019-2025 99,667 99,653 4.86% (net of unamortized debt issuance cost of $176 and $186 for 2019 and 2018, respectively) 2019-2023 46,253 46,243 5.88% (net of unamortized debt issuance cost of $80 and $85 for 2019 and 2018, respectively) 2019-2022 22,777 22,772 Debt of foreign subsidiaries Unsecured bank debt, foreign currency 2019 3,514 7,772 Total debt $ 271,862 $ 276,080 Less current maturities 32,799 37,058 Long-term debt $ 239,063 $ 239,022 The Company has a committed $350,000,000 multi-currency revolving credit agreement that expires on January 30, 2023. The Company maintains standby letters of credit under its workers’ compensation insurance agreements and for other purposes, as needed from time to time, which are issued under the revolving credit agreement. As of March 31, 2019, the Company had outstanding letters of credit totaling $5,271,000 and no outstanding debt under this agreement. There was $344,729,000 available under the revolving credit agreement as of March 31, 2019. The Company’s 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 $235,249,000 and $214,101,000 at March 31, 2019 and December 31, 2018, respectively. |
Other, Net
Other, Net | 3 Months Ended |
Mar. 31, 2019 | |
Other Income And Expenses [Abstract] | |
Other, Net | 16. OTHER, NET Other, net in the consolidated statements of income included the following: (In thousands) Three Months Ended March 31 2019 2018 Foreign exchange gains $ 600 $ 1,053 Investment income 97 139 Realized and unrealized gains on investments 2,404 97 Net periodic benefit cost 44 (129 ) Other, net $ 3,145 $ 1,160 |
Business Restructuring
Business Restructuring | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring And Related Activities [Abstract] | |
Business Restructuring | 17. BUSINESS RESTRUCTURING In the first quarter of 2019, the Company approved a plan to close its Specialty Products office in the Netherlands and eliminate five positions from the site’s supply chain, quality control and research and development areas. This planned reduction in positions was made to better align the number of personnel with current business requirements and reduce costs at the site. As a result, severance and early lease termination expenses of $396,000 and $79,000, respectively, were recognized during the first quarter of 2019. During the third quarter of 2018, the Company approved a plan to shut down Surfactant operations at its German plant site. As of March 31, 2019, an aggregate of $1,591,000 shut down related expense has been recognized at the site. This aggregate expense is comprised of $1,404,000 of asset and spare part write downs recognized in 2018 and $187,000 of decommissioning costs recognized in the first quarter of 2019. Decommissioning costs associated with the shutdown are expected to continue throughout the remainder of 2019. In the fourth quarter of 2017, the Company approved a plan to restructure a portion of its Fieldsboro, New Jersey production facility. As a result, the Company recorded $915,000 of restructuring expense which reflected termination benefits for select plant employees. In the first quarter of 2019, the Company recognized a $251,000 favorable adjustment to the amount of termination benefits initially recorded. In May 2016, the Company announced plans to shut down its Longford Mills, Ontario, Canada (Longford Mills) manufacturing facility, a part of the Surfactant reportable segment, by December 31, 2016. The shutdown plan was implemented to improve the Company’s asset utilization in North America and to reduce the Company’s fixed cost base. Manufacturing operations of the Longford Mills plant ceased by the end of 2016, and production of goods manufactured at the facility was transferred to other Company North American production sites. Decommissioning of the assets is expected to continue throughout 2019. As of March 31, 2019, $6,346,000 of aggregate restructuring expense has been recognized, reflecting $1,594,000 of termination benefits for approximately 30 employees and $4,752,000 for other expenses, principally site decommissioning costs. Below is a reconciliation of the December 31, 2018 and the March 31, 2019 restructuring liabilities: (In thousands) Termination Benefits Other Expense Total Restructuring liability at December 31, 2018 $ 260 $ 83 $ 343 Expense recognized — 322 322 Amounts paid (79 ) (322 ) (401 ) Foreign currency translation 6 2 8 Restructuring liability at March 31, 2019 $ 187 $ 85 $ 272 |
Acquisition
Acquisition | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisition | 18. ACQUISITION 2018 Acquisition On March 26, 2018, the Company through a subsidiary in Mexico closed on a previously announced agreement with BASF Mexicana, S.A.DE C.V. (BASF) to acquire their surfactants production facility in Ecatepec, Mexico and a portion of their associated surfactants business. The facility is located close to Mexico City and has over 50,000 metric tons of capacity, 124,000 square footage of warehouse space, a large laboratory and office space. The acquired assets and business are included in the Company’s Surfactants segment. The purchase price of the acquisition was $22,852,000 and was paid with cash on hand. The primary assets acquired were land, buildings, machinery and equipment and inventory. The acquisition was accounted for as a business combination, and, accordingly, the assets acquired were measured and recorded at their estimated fair values. No intangible assets were identified as part of the acquisition. The following table summarizes the assets acquired as a result of the acquisition: (In thousands) Assets: Property, plant and equipment $ 14,464 Inventory 5,687 Value-added tax receivables 2,701 Total assets acquired $ 22,852 The acquired business had minimal impact on the Company’s 2018 financial results. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent Accounting Pronouncements | 19. RECENT ACCOUNTING PRONOUNCEMENTS In February 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-2, Leases (Topic 842) Leases (Topic 842) Leases In January 2017, the FASB issued ASU No. 2017-4, Intangibles – Goodwill and Other (Topic 350) Simplifying the Test for Goodwill Impairment In February 2018, the FASB issued ASU No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, Accumulated Other Comprehensive Income (Loss) In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued ASU No. 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20) In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use software (Subtopic 350-40) Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent Accounting Pronouncements | In February 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-2, Leases (Topic 842) Leases (Topic 842) Leases In January 2017, the FASB issued ASU No. 2017-4, Intangibles – Goodwill and Other (Topic 350) Simplifying the Test for Goodwill Impairment In February 2018, the FASB issued ASU No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, Accumulated Other Comprehensive Income (Loss) In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued ASU No. 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20) In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use software (Subtopic 350-40) Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract |
Change In Method of Accountin_2
Change In Method of Accounting for Inventory Valuation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Change In Accounting Estimate [Abstract] | |
Summary of Prior Year Financial Statement Line Items that have Been Affected by Retrospective Change in Accounting Principle | The following tables present the prior year financial statement line items that have been affected by the retrospective change in accounting principle: Income Statement (In thousands, except per share amounts) Three Months Ended March 31, 2018 As originally reported under LIFO Effect of change As adjusted under FIFO Cost of Sales $ 409,765 $ (1,628 ) $ 408,137 Gross Profit 89,570 1,628 91,198 Operating Income 39,655 1,628 41,283 Income Before Provision for Income Taxes 37,664 1,628 39,292 Provision for Income Taxes 6,948 399 7,347 Net Income 30,716 1,229 31,945 Net Income Attributable to Stepan Company 30,723 1,229 31,952 Net Income Per Diluted Common Share Attributable to Stepan Company $ 1.31 $ 0.06 $ 1.37 Balance Sheet (In thousands) December 31, 2018 As originally reported under LIFO Effect of change As adjusted under FIFO Inventories $ 200,165 $ 31,363 $ 231,528 Other Non-Current Assets 10,964 (1,415 ) 9,549 Total Assets 1,484,666 29,948 1,514,614 Deferred Income Taxes $ 18,672 $ 6,289 $ 24,961 Retained Earnings 813,448 23,659 837,107 Total Liabilities and Equity 1,484,666 29,948 1,514,614 Statement of Cash Flows (In thousands) Three Months Ended March 31, 2018 As originally reported under LIFO Effect of change As adjusted under FIFO Net Income $ 30,716 $ 1,229 $ 31,945 Deferred Income Taxes 357 399 756 Change in Assets and Liabilities: Inventories (8,993 ) (1,628 ) (10,621 ) |
Summary of Current Year Financial Statement Line Items If Company Does Not Changed Method of Accounting for U.S. Inventories from LIFO to FIFO | The following tables present what current year financial statement line items would have been had the Company not changed its method of accounting for U.S. inventories from LIFO to FIFO basis: Income Statement (In thousands, except per share amounts) Three Months Ended March 31, 2019 As reported under FIFO Effect of change As computed under LIFO Cost of Sales $ 404,561 $ 1,500 $ 406,061 Gross Profit 84,609 (1,500 ) 83,109 Operating Income 29,738 (1,500 ) 28,238 Income Before Provision for Income Taxes 31,030 (1,500 ) 29,530 Provision for Income Taxes 6,052 (368 ) 5,684 Net Income 24,978 (1,132 ) 23,846 Net Income Attributable to Stepan Company 24,984 (1,132 ) 23,852 Net Income Per Diluted Common Share Attributable to Stepan Company $ 1.07 $ (0.05 ) $ 1.02 Balance Sheet (In thousands) March 31, 2019 As reported under FIFO Effect of change As computed under LIFO Inventories $ 215,028 $ (32,863 ) $ 182,165 Other Non-Current Assets 10,332 1,483 11,815 Total Assets 1,526,000 (31,380 ) 1,494,620 Deferred Income Taxes $ 24,158 $ (6,589 ) $ 17,569 Retained Earnings 861,773 (24,791 ) 836,982 Total Liabilities and Equity 1,526,000 (31,380 ) 1,494,620 Statement of Cash Flows (In thousands) Three Months Ended March 31, 2019 As reported under FIFO Effect of change As computed under LIFO Net Income $ 24,978 $ (1,132 ) $ 23,846 Deferred Income Taxes (1,857 ) (368 ) (2,225 ) Change in Assets and Liabilities: Inventories 16,231 1,500 17,731 |
Reconciliations of Equity (Tabl
Reconciliations of Equity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Reconciliations of Total Equity | Below are reconciliations of total equity, Company equity and equity attributable to noncontrolling interests for the three months ended March 31, 2019 and 2018: (In thousands, except share and per share amounts) Total Common Stock Additional Paid-in Capital Treasury Stock Accumulated Other Comprehensive Income (Loss) Retained Earnings Noncontrolling Interest (1) Balance, December 31, 2018 (2) $ 808,185 $ 26,309 $ 182,881 $ (97,389 ) $ (141,483 ) $ 837,107 $ 760 Issuance of 38,706 shares of common stock under stock option plan 1,890 39 1,851 — — — — Purchase of 900 shares of common stock (77 ) — — (77 ) — — — Stock-based and deferred compensation (1,360 ) 93 1,179 (2,632 ) — — — Net income 24,978 — — — — 24,984 (6 ) Other comprehensive income 4,248 — — — 4,228 — 20 Cash dividends paid: Common stock ($0.25 per share) (5,643 ) — — — — (5,643 ) — Other (3) — — — — (5,325 ) 5,325 — Balance, March 31, 2019 $ 832,221 $ 26,441 $ 185,911 $ (100,098 ) $ (142,580 ) $ 861,773 $ 774 (In thousands, except share and per share amounts) Total Common Stock Additional Paid-in Capital Treasury Stock Accumulated Other Comprehensive Income (Loss) Retained Earnings Noncontrolling Interest (1) Balance, December 31, 2017 (2) $ 766,218 $ 26,071 $ 170,408 $ (78,561 ) $ (99,563 ) $ 747,045 $ 818 Issuance of 77,474 shares of common stock under stock option plan 3,155 77 3,078 — — — — Purchase of 6,107 shares of common stock (2,500 ) — — (2,500 ) — — — Stock-based and deferred compensation (1,136 ) 120 1,725 (2,981 ) — — — Net income (2) 31,945 — — — — 31,952 (7 ) Other comprehensive income 9,567 — — — 9,535 — 32 Cash dividends paid: Common stock ($0.23 per share) (5,092 ) — — — — (5,092 ) Other (4) (198 ) — — — — (198 ) — Balance, March 31, 2018 $ 801,959 $ 26,268 $ 175,211 $ (84,042 ) $ (90,028 ) $ 773,707 $ 843 (1) (2) . (3) Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (4) Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Values and Related Carrying Values of Debt | At March 31, 2019, and December 31, 2018, the fair values and related carrying values of debt, including current maturities, were as follows (the fair value and carrying value amounts are presented without regard to unamortized debt issuance costs of $938,000 (In thousands) March 31, 2019 December 31, 2018 Fair value $ 272,625 $ 274,119 Carrying value 272,800 277,058 |
Financial Assets and Liabilities Measured on a Recurring Basis at Fair Value | The following tables present financial assets and liabilities measured on a recurring basis at fair value as of March 31, 2019, and December 31, 2018, and the level within the fair value hierarchy in which the fair value measurements fall: (In thousands) March 2019 Level 1 Level 2 Level 3 Mutual fund assets $ 25,615 $ 25,615 $ — $ — Derivative assets: Foreign currency contracts 31 — 31 — Total assets at fair value $ 25,646 $ 25,615 $ 31 $ — Derivative liabilities: Foreign currency contracts $ 61 $ — $ 61 $ — (In thousands) December 2018 Level 1 Level 2 Level 3 Mutual fund assets $ 25,082 $ 25,082 $ — $ — Derivative assets: Foreign currency contracts 185 — 185 — Total assets at fair value $ 25,267 $ 25,082 $ 185 $ — Derivative liabilities: Foreign currency contracts $ 10 $ — $ 10 $ — |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Compensation Expense Recorded for All Stock Options, Stock Awards and SARs | Compensation expense recorded for all stock options, stock awards and SARs was as follows: (In thousands) Three Months Ended March 31 2019 2018 $ 2,596 $ 2,232 |
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) March 31, 2019 December 31, 2018 Stock options $ 2,935 $ 1,655 Stock awards 5,712 3,180 SARs 6,260 3,566 |
Share Based Payment Awards Granted in Period | The increases in unrecognized compensation costs for stock options, stock awards and SARs reflected the 2019 grants of: Shares Stock options 67,628 Stock awards (at target) 41,528 SARs 146,613 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Composition of Inventories | The composition of inventories at March 31, 2019, and December 31, 2018, was as follows: (In thousands) March 31, 2019 December 31, 2018 As Adjusted Finished goods $ 154,758 $ 163,617 Raw materials 60,270 67,911 Total inventories $ 215,028 $ 231,528 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Schedule of Lease Cost and Other Information | (In thousands) March 31, 2019 Lease Cost Operating lease cost $ 2,688 Short-term lease cost 970 Variable lease cost 348 Total lease cost $ 4,006 Other Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow from operating leases $ 2,696 Right-of-use assets obtained in exchange for new operating lease liabilities 294 Weighted-average remaining lease term-operating leases 9 Years Weighted-average discount rate-operating leases 3.9 % |
Schedule of Lease Liability Payments | (In thousands) Undiscounted Cash Flows: 2019 (excluding the three months ended March 31, 2019) $ 7,870 2020 9,192 2021 6,427 2022 5,317 2023 4,145 Subsequent to 2023 17,231 Total Undiscounted Cash Flows $ 50,182 Less: Imputed interest (9,846 ) Present value $ 40,336 Current operating lease liabilities (1) 8,975 Non-current operating lease liabilities 31,361 Total lease liabilities $ 40,336 (1) This item is included in Accrued liabilities line on the Company’s Condensed Consolidated Balance Sheet. |
Schedule of Future Minimum Lease Payments Under ASC 840 | As required in transition, the table below summarizes the Company’s future minimum lease payments at December 31, 2018 under ASC 840. (In thousands) Year 2019 $ 9,740 2020 8,294 2021 6,027 2022 5,242 2023 4,101 Subsequent to 2023 16,593 Total minimum future rental payments $ 49,997 |
Postretirement Benefit Plans (T
Postretirement Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Components of Net Periodic Benefit Cost | Components of Net Periodic Benefit Cost UNITED STATES UNITED KINGDOM (In thousands) Three Months Ended March 31 Three Months Ended March 31 2019 2018 2019 2018 Interest cost $ 1,661 $ 1,539 $ 142 $ 148 Expected return on plan assets (2,361 ) (2,321 ) (201 ) (231 ) Amortization of net actuarial loss 652 937 63 57 Net periodic benefit cost $ (48 ) $ 155 $ 4 $ (26 ) |
Defined Contribution Plan Expenses for Company's Qualified Contribution Plans | Defined contribution plan expenses for the Company’s qualified contribution plans were as follows: (In thousands) Three Months Ended March 31 2019 2018 Retirement savings contributions $ 2,409 $ 1,757 Profit sharing contributions 882 942 Total defined contribution plan expenses $ 3,291 $ 2,699 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | Below are the computations of basic and diluted earnings per share for the three months ended March 31, 2019 and 2018: (In thousands, except per share amounts) Three Months Ended March 31 2019 2018 As Adjusted Computation of Basic Earnings per Share Net income attributable to Stepan Company (1) $ 24,984 $ 31,952 Weighted-average number of common shares outstanding 23,099 23,082 Basic earnings per share (1) $ 1.08 $ 1.38 Computation of Diluted Earnings per Share Net income attributable to Stepan Company (1) $ 24,984 $ 31,952 Weighted-average number of shares outstanding 23,099 23,082 Add weighted-average net shares from assumed exercise of options (under treasury stock method) (2) 92 119 Add weighted-average net shares related to unvested stock awards (under treasury stock method) 3 2 Add weighted-average net shares from assumed exercise of SARs (under treasury stock method) (2) 108 122 Add weighted-average contingently issuable net shares related to performance stock awards (under treasury stock method) 30 64 Weighted-average shares applicable to diluted earnings 23,332 23,389 Diluted earnings per share (1) $ 1.07 $ 1.37 (1) The (2) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Summary of Changes in Accumulated Other Comprehensive Income | In conjunction with the adoption of ASU 2018-02, the Company reclassified $5,325,000 of other comprehensive loss, associated with post retirement plans, from accumulated other comprehensive loss to retained earnings effective January 1, 2019. Below is the change in the Company’s AOCI balance by component (net of income taxes) for the three months ended March 31, 2019 and 2018: (In thousands) Foreign Currency Translation Adjustments Defined Benefit Pension Plan Adjustments Cash Flow Hedge Adjustments Total Balance at December 31, 2017 $ (70,561 ) $ (29,093 ) $ 91 $ (99,563 ) Other comprehensive income before reclassifications 8,785 — — 8,785 Amounts reclassified from AOCI — 753 (3 ) 750 Net current-period other comprehensive income 8,785 753 (3 ) 9,535 Balance at March 31, 2018 $ (61,776 ) $ (28,340 ) $ 88 $ (90,028 ) Balance at December 31, 2018 $ (108,481 ) $ (33,083 ) $ 81 $ (141,483 ) Other comprehensive income before reclassifications 3,687 — — 3,687 Amounts reclassified from AOCI — 543 (2 ) 541 Reclassification adjustment related to the Tax Act (1) — (5,325 ) — (5,325 ) Net current-period other comprehensive income 3,687 (4,782 ) (2 ) (1,097 ) Balance at March 31, 2019 $ (104,794 ) $ (37,865 ) $ 79 $ (142,580 ) (1) Represents reclassification of the stranded tax effects resulting from the U.S. Tax Cuts and Jobs Act (Tax Act) from accumulated other comprehensive income (loss) to retained earnings in accordance with ASU 2018-02. See Note 19 for more details. |
Summary of Amounts Reclassifications Out of Accumulated Other Comprehensive Income | Information regarding the reclassifications out of AOCI for the three month periods ended March 31, 2019 and 2018, is displayed below: (In thousands) Amount Reclassified from AOCI (a) AOCI Components Three Months Ended March 31 Affected Line Item in Consolidated Statements of Income 2019 2018 Amortization of defined benefit pension actuarial losses $ (715 ) $ (994 ) (b) 172 241 Tax benefit $ (543 ) $ (753 ) Net of tax Gains and losses on cash flow hedges: Foreign exchange contracts 2 3 Cost of sales 2 3 Total before tax — — Tax benefit $ 2 $ 3 Net of tax Total reclassifications for the period $ (541 ) $ (750 ) 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 10 for additional details). |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Operating Segment | The Company has three reportable segments: Surfactants, Polymers and Specialty Products. Net sales by segment for the three months ended March 31, 2019 and 2018, were as follows: (In thousands) Three Months Ended March 31 2019 2018 Segment Net Sales Surfactants $ 349,650 $ 358,940 Polymers 120,179 121,933 Specialty Products 19,341 18,462 Total $ 489,170 $ 499,335 |
Reconciliation of Segment Information to Consolidated Financial Statements | Segment operating income and reconciliations of segment operating income to consolidated income before income taxes for the three months ended March 31, 2019 and 2018, are summarized below: (In thousands) Three Months Ended March 31 2019 2018 As Adjusted Segment Operating Income Surfactants (1) $ 37,167 $ 41,468 Polymers (1) 12,105 17,305 Specialty Products 3,131 (350 ) Segment operating income (1) 52,403 58,423 Business restructuring (733 ) (358 ) Unallocated corporate expenses (2) (21,932 ) (16,782 ) Consolidated operating income (1) 29,738 41,283 Interest expense, net (1,853 ) (3,151 ) Other, net 3,145 1,160 Consolidated income before income taxes (1) $ 31,030 $ 39,292 (1) . (2) 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. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Geographic Disaggregation of Net Sales | The tables below provides a geographic disaggregation of net sales for the three months ended March 31, 2019 and 2018. The Company’s business segmentation by geographic region most effectively captures the nature and economic characteristics of the Company’s revenue streams impacted by economic factors. For the Three Months Ended March 31, 2019 (In thousands) Surfactants Polymers Specialty Total Geographic Market North America $ 214,297 $ 71,323 $ 16,025 $ 301,645 Europe 71,478 42,105 3,316 116,899 Latin America 50,812 197 — 51,009 Asia 13,063 6,554 — 19,617 Total $ 349,650 $ 120,179 $ 19,341 $ 489,170 For the Three Months Ended March 31, 2018 (In thousands) Surfactants Polymers Specialty Total Geographic Market North America $ 220,405 $ 73,474 $ 14,814 $ 308,693 Europe 78,371 41,784 3,648 123,803 Latin America 41,688 827 — 42,515 Asia 18,476 5,848 — 24,324 Total $ 358,940 $ 121,933 $ 18,462 $ 499,335 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | At March 31, 2019, and December 31, 2018, debt comprised the following: (In thousands) Maturity Dates March 31, 2019 December 31, 2018 Unsecured private placement notes 3.95% (net of unamortized debt issuance cost of $349 and $360 for 2019 and 2018, respectively) 2021-2027 $ 99,651 $ 99,640 3.86% (net of unamortized debt issuance cost of $333 and $347 for 2019 and 2018, respectively) 2019-2025 99,667 99,653 4.86% (net of unamortized debt issuance cost of $176 and $186 for 2019 and 2018, respectively) 2019-2023 46,253 46,243 5.88% (net of unamortized debt issuance cost of $80 and $85 for 2019 and 2018, respectively) 2019-2022 22,777 22,772 Debt of foreign subsidiaries Unsecured bank debt, foreign currency 2019 3,514 7,772 Total debt $ 271,862 $ 276,080 Less current maturities 32,799 37,058 Long-term debt $ 239,063 $ 239,022 |
Other, Net (Tables)
Other, Net (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31 2019 2018 Foreign exchange gains $ 600 $ 1,053 Investment income 97 139 Realized and unrealized gains on investments 2,404 97 Net periodic benefit cost 44 (129 ) Other, net $ 3,145 $ 1,160 |
Business Restructuring (Tables)
Business Restructuring (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Longford Mills [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Reconciliation of Restructuring Liabilities | Below is a reconciliation of the December 31, 2018 and the March 31, 2019 restructuring liabilities: (In thousands) Termination Benefits Other Expense Total Restructuring liability at December 31, 2018 $ 260 $ 83 $ 343 Expense recognized — 322 322 Amounts paid (79 ) (322 ) (401 ) Foreign currency translation 6 2 8 Restructuring liability at March 31, 2019 $ 187 $ 85 $ 272 |
Acquisition (Tables)
Acquisition (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
2018 Acquisition [Member] | |
Summary of Assets Acquired | The following table summarizes the assets acquired as a result of the acquisition: (In thousands) Assets: Property, plant and equipment $ 14,464 Inventory 5,687 Value-added tax receivables 2,701 Total assets acquired $ 22,852 |
Change in Method of Accountin_3
Change in Method of Accounting for Inventory Valuation - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
Change In Accounting Estimate [Line Items] | |||
Percentage of LIFO inventory | 68.00% | ||
Retained earnings | [1],[2] | $ 861,773 | $ 837,107 |
Effect of Change [Member] | |||
Change In Accounting Estimate [Line Items] | |||
Retained earnings | $ (24,791) | $ 23,659 | |
[1] | The 2018 amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. | ||
[2] | The 2019 amounts for the noted line items include an adjustment related to the Company’s first quarter 2019 adoption of ASU No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. |
Change in Method of Accountin_4
Change in Method of Accounting for Inventory Valuation - Summary of Prior Year Financial Statement Line Items that have Been Affected by Retrospective Change in Accounting Principle (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |||
Income Statement [Abstract] | |||||
Cost of Sales | [1] | $ 404,561 | $ 408,137 | ||
Gross Profit | [1] | 84,609 | 91,198 | ||
Operating Income | [1],[2] | 29,738 | 41,283 | ||
Income Before Provision for Income Taxes | [1],[2] | 31,030 | 39,292 | ||
Provision for Income Taxes | [1] | 6,052 | 7,347 | ||
Net Income | [1],[2] | 24,978 | 31,945 | [3] | |
Net Income Attributable to Stepan Company | [1],[2] | $ 24,984 | $ 31,952 | ||
Net Income Per Diluted Common Share Attributable to Stepan Company | [1],[2] | $ 1.07 | $ 1.37 | ||
Balance Sheet [Abstract] | |||||
Inventories | $ 215,028 | $ 231,528 | |||
Other Non-Current Assets | [2] | 10,332 | 9,549 | ||
Total Assets | [2] | 1,526,000 | 1,514,614 | ||
Deferred Income Taxes | [2] | 24,158 | 24,961 | ||
Retained Earnings | [2],[4] | 861,773 | 837,107 | ||
Total Liabilities and Equity | [2] | 1,526,000 | 1,514,614 | ||
Statement of Cash Flows [Abstract] | |||||
Net Income | [1],[2] | 24,978 | $ 31,945 | [3] | |
Deferred Income Taxes | [2] | (1,857) | 756 | ||
Changes in assets and liabilities: | |||||
Inventories | [2] | 16,231 | (10,621) | ||
As Originally Reported Under LIFO [Member] | |||||
Income Statement [Abstract] | |||||
Cost of Sales | 409,765 | ||||
Gross Profit | 89,570 | ||||
Operating Income | 39,655 | ||||
Income Before Provision for Income Taxes | 37,664 | ||||
Provision for Income Taxes | 6,948 | ||||
Net Income | 30,716 | ||||
Net Income Attributable to Stepan Company | $ 30,723 | ||||
Net Income Per Diluted Common Share Attributable to Stepan Company | $ 1.31 | ||||
Balance Sheet [Abstract] | |||||
Inventories | 200,165 | ||||
Other Non-Current Assets | 10,964 | ||||
Total Assets | 1,484,666 | ||||
Deferred Income Taxes | 18,672 | ||||
Retained Earnings | 813,448 | ||||
Total Liabilities and Equity | 1,484,666 | ||||
Statement of Cash Flows [Abstract] | |||||
Net Income | $ 30,716 | ||||
Deferred Income Taxes | 357 | ||||
Changes in assets and liabilities: | |||||
Inventories | (8,993) | ||||
Effect of Change [Member] | |||||
Income Statement [Abstract] | |||||
Cost of Sales | (1,628) | ||||
Gross Profit | 1,628 | ||||
Operating Income | 1,628 | ||||
Income Before Provision for Income Taxes | 1,628 | ||||
Provision for Income Taxes | 399 | ||||
Net Income | (1,132) | 1,229 | |||
Net Income Attributable to Stepan Company | $ 1,229 | ||||
Net Income Per Diluted Common Share Attributable to Stepan Company | $ 0.06 | ||||
Balance Sheet [Abstract] | |||||
Inventories | (32,863) | 31,363 | |||
Other Non-Current Assets | 1,483 | (1,415) | |||
Total Assets | (31,380) | 29,948 | |||
Deferred Income Taxes | (6,589) | 6,289 | |||
Retained Earnings | (24,791) | 23,659 | |||
Total Liabilities and Equity | (31,380) | $ 29,948 | |||
Statement of Cash Flows [Abstract] | |||||
Net Income | (1,132) | $ 1,229 | |||
Deferred Income Taxes | (368) | 399 | |||
Changes in assets and liabilities: | |||||
Inventories | $ 1,500 | $ (1,628) | |||
[1] | The 2018 amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from the last in, first out (LIFO) basis to the first in, first out (FIFO) basis. | ||||
[2] | The 2018 amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. | ||||
[3] | The retained earnings and net income amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. | ||||
[4] | The 2019 amounts for the noted line items include an adjustment related to the Company’s first quarter 2019 adoption of ASU No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. |
Change in Method of Accountin_5
Change in Method of Accounting for Inventory Valuation - Summary of Current Year Financial Statement Line Items If Company Does Not Changed Method of Accounting for U.S. Inventories from LIFO to FIFO (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |||
Income Statement [Abstract] | |||||
Cost of Sales | [1] | $ 404,561 | $ 408,137 | ||
Gross Profit | [1] | 84,609 | 91,198 | ||
Operating Income | [1],[2] | 29,738 | 41,283 | ||
Income Before Provision for Income Taxes | [1],[2] | 31,030 | 39,292 | ||
Provision for Income Taxes | [1] | 6,052 | 7,347 | ||
Net Income | [1],[2] | 24,978 | 31,945 | [3] | |
Net Income Attributable to Stepan Company | [1],[2] | $ 24,984 | $ 31,952 | ||
Net Income Per Diluted Common Share Attributable to Stepan Company | [1],[2] | $ 1.07 | $ 1.37 | ||
Balance Sheet [Abstract] | |||||
Inventories | $ 215,028 | $ 231,528 | |||
Other Non-Current Assets | [2] | 10,332 | 9,549 | ||
Total Assets | [2] | 1,526,000 | 1,514,614 | ||
Deferred Income Taxes | [2] | 24,158 | 24,961 | ||
Retained Earnings | [2],[4] | 861,773 | 837,107 | ||
Total Liabilities and Equity | [2] | 1,526,000 | 1,514,614 | ||
Statement of Cash Flows [Abstract] | |||||
Net Income | [1],[2] | 24,978 | $ 31,945 | [3] | |
Deferred Income Taxes | [2] | (1,857) | 756 | ||
Changes in assets and liabilities: | |||||
Inventories | [2] | 16,231 | (10,621) | ||
Effect of Change [Member] | |||||
Income Statement [Abstract] | |||||
Cost of Sales | (1,628) | ||||
Gross Profit | 1,628 | ||||
Operating Income | 1,628 | ||||
Income Before Provision for Income Taxes | 1,628 | ||||
Provision for Income Taxes | 399 | ||||
Net Income | (1,132) | 1,229 | |||
Net Income Attributable to Stepan Company | $ 1,229 | ||||
Net Income Per Diluted Common Share Attributable to Stepan Company | $ 0.06 | ||||
Balance Sheet [Abstract] | |||||
Inventories | (32,863) | 31,363 | |||
Other Non-Current Assets | 1,483 | (1,415) | |||
Total Assets | (31,380) | 29,948 | |||
Deferred Income Taxes | (6,589) | 6,289 | |||
Retained Earnings | (24,791) | 23,659 | |||
Total Liabilities and Equity | (31,380) | $ 29,948 | |||
Statement of Cash Flows [Abstract] | |||||
Net Income | (1,132) | $ 1,229 | |||
Deferred Income Taxes | (368) | 399 | |||
Changes in assets and liabilities: | |||||
Inventories | 1,500 | $ (1,628) | |||
As Computed under LIFO [Member] | |||||
Income Statement [Abstract] | |||||
Net Income | 23,846 | ||||
Balance Sheet [Abstract] | |||||
Inventories | 182,165 | ||||
Other Non-Current Assets | 11,815 | ||||
Total Assets | 1,494,620 | ||||
Deferred Income Taxes | 17,569 | ||||
Retained Earnings | 836,982 | ||||
Total Liabilities and Equity | 1,494,620 | ||||
Statement of Cash Flows [Abstract] | |||||
Net Income | 23,846 | ||||
Deferred Income Taxes | (2,225) | ||||
Changes in assets and liabilities: | |||||
Inventories | 17,731 | ||||
ProForma [Member] | Effect of Change [Member] | |||||
Income Statement [Abstract] | |||||
Cost of Sales | 1,500 | ||||
Gross Profit | (1,500) | ||||
Operating Income | (1,500) | ||||
Income Before Provision for Income Taxes | (1,500) | ||||
Provision for Income Taxes | (368) | ||||
Net Income | (1,132) | ||||
Net Income Attributable to Stepan Company | $ (1,132) | ||||
Net Income Per Diluted Common Share Attributable to Stepan Company | $ (0.05) | ||||
Statement of Cash Flows [Abstract] | |||||
Net Income | $ (1,132) | ||||
ProForma [Member] | As Computed under LIFO [Member] | |||||
Income Statement [Abstract] | |||||
Cost of Sales | 406,061 | ||||
Gross Profit | 83,109 | ||||
Operating Income | 28,238 | ||||
Income Before Provision for Income Taxes | 29,530 | ||||
Provision for Income Taxes | 5,684 | ||||
Net Income | 23,846 | ||||
Net Income Attributable to Stepan Company | $ 23,852 | ||||
Net Income Per Diluted Common Share Attributable to Stepan Company | $ 1.02 | ||||
Statement of Cash Flows [Abstract] | |||||
Net Income | $ 23,846 | ||||
[1] | The 2018 amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from the last in, first out (LIFO) basis to the first in, first out (FIFO) basis. | ||||
[2] | The 2018 amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. | ||||
[3] | The retained earnings and net income amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. | ||||
[4] | The 2019 amounts for the noted line items include an adjustment related to the Company’s first quarter 2019 adoption of ASU No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. |
Reconciliations of Equity - Rec
Reconciliations of Equity - Reconciliations of Total Equity (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | ||||
Reconciliations of total equity | |||||
Beginning Balance | [2] | $ 808,185 | [1] | $ 766,218 | |
Issuance of common stock under stock option plan | 1,890 | 3,155 | |||
Purchase of common stock | (77) | (2,500) | |||
Stock-based and deferred compensation | (1,360) | (1,136) | |||
Net income | [1],[3] | 24,978 | 31,945 | [2] | |
Other comprehensive income | 4,248 | 9,567 | |||
Cash dividends paid: | |||||
Common stock | (5,643) | (5,092) | |||
Other | [4] | (198) | |||
Ending Balance | 832,221 | [1] | 801,959 | ||
Common Stock [Member] | |||||
Reconciliations of total equity | |||||
Beginning Balance | [2] | 26,309 | 26,071 | ||
Issuance of common stock under stock option plan | 39 | 77 | |||
Stock-based and deferred compensation | 93 | 120 | |||
Cash dividends paid: | |||||
Ending Balance | 26,441 | 26,268 | |||
Additional Paid-in Capital [Member] | |||||
Reconciliations of total equity | |||||
Beginning Balance | [2] | 182,881 | 170,408 | ||
Issuance of common stock under stock option plan | 1,851 | 3,078 | |||
Stock-based and deferred compensation | 1,179 | 1,725 | |||
Cash dividends paid: | |||||
Ending Balance | 185,911 | 175,211 | |||
Treasury Stock [Member] | |||||
Reconciliations of total equity | |||||
Beginning Balance | [2] | (97,389) | (78,561) | ||
Purchase of common stock | (77) | (2,500) | |||
Stock-based and deferred compensation | (2,632) | (2,981) | |||
Cash dividends paid: | |||||
Ending Balance | (100,098) | (84,042) | |||
Accumulated Other Comprehensive Income (Loss) [Member] | |||||
Reconciliations of total equity | |||||
Beginning Balance | [2] | (141,483) | (99,563) | ||
Other comprehensive income | 4,228 | 9,535 | |||
Cash dividends paid: | |||||
Other | [5] | (5,325) | |||
Ending Balance | (142,580) | (90,028) | |||
Retained Earnings [Member] | |||||
Reconciliations of total equity | |||||
Beginning Balance | [2] | 837,107 | 747,045 | ||
Net income | 24,984 | 31,952 | [2] | ||
Cash dividends paid: | |||||
Common stock | (5,643) | (5,092) | |||
Other | 5,325 | [5] | (198) | [4] | |
Ending Balance | 861,773 | 773,707 | |||
Noncontrolling Interest [Member] | |||||
Reconciliations of total equity | |||||
Beginning Balance | [2],[6] | 760 | 818 | ||
Net income | [6] | (6) | (7) | [2] | |
Other comprehensive income | [6] | 20 | 32 | ||
Cash dividends paid: | |||||
Ending Balance | [6] | $ 774 | $ 843 | ||
[1] | The 2018 amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. | ||||
[2] | The retained earnings and net income amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. | ||||
[3] | The 2018 amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from the last in, first out (LIFO) basis to the first in, first out (FIFO) basis. | ||||
[4] | Reflects beginning retained earnings adjustment as a result of the Company’s first quarter 2018 adoption of ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. | ||||
[5] | Reflects beginning retained earnings adjustment as a result of the Company’s first quarter 2019 adoption of ASU No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. See Note 19 for more details. | ||||
[6] | Reflects the noncontrolling interest in the Company’s China joint venture. |
Reconciliations of Equity - R_2
Reconciliations of Equity - Reconciliations of Total Equity (Parenthetical) (Detail) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Number of shares of common stock issued under stock option plan | 38,706 | 77,474 |
Number of common stock shares purchased | 900 | 6,107 |
Common stock | $ 0.25 | $ 0.23 |
Common Stock [Member] | ||
Number of shares of common stock issued under stock option plan | 38,706 | 77,474 |
Additional Paid-in Capital [Member] | ||
Number of shares of common stock issued under stock option plan | 38,706 | 77,474 |
Treasury Stock [Member] | ||
Number of common stock shares purchased | 900 | 6,107 |
Retained Earnings [Member] | ||
Common stock | $ 0.25 | $ 0.23 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value Disclosures [Abstract] | ||
Unamortized debt issuance cost | $ 938,000 | $ 978,000 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Values and Related Carrying Values of Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Carrying value | $ 272,800 | $ 277,058 |
Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value | $ 272,625 | $ 274,119 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Measured on a Recurring Basis at Fair Value (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Mutual fund assets | $ 25,615 | $ 25,082 |
Derivative assets: | ||
Foreign currency contracts | 31 | 185 |
Total assets at fair value | 25,646 | 25,267 |
Derivative liabilities: | ||
Foreign currency contracts | 61 | 10 |
Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Mutual fund assets | 25,615 | 25,082 |
Derivative assets: | ||
Total assets at fair value | 25,615 | 25,082 |
Level 2 [Member] | ||
Derivative assets: | ||
Foreign currency contracts | 31 | 185 |
Total assets at fair value | 31 | 185 |
Derivative liabilities: | ||
Foreign currency contracts | $ 61 | $ 10 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative notional amount | $ 24,164,006 | $ 28,870,081 |
Minimum [Member] | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative foreign currency exchange contracts durations | 1 month | |
Maximum [Member] | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative foreign currency exchange contracts durations | 3 months |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2019 | |
Stock Option and Stock Appreciation Rights (SARs) Granted Prior to 2017 [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Vesting period | 2 years |
Stock Option and Stock Appreciation Rights (SARS) Granted in 2017 [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Vesting period | 3 years |
Percentage of awards vesting in each year | 33.33% |
Stock Option [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Weighted average period for amortization of unrecognized compensation cost | 2 years 2 months 12 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 2 months 12 days |
SARs [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Weighted average period for amortization of unrecognized compensation cost | 2 years 2 months 12 days |
Stock-based Compensation - Comp
Stock-based Compensation - Compensation Expense Recorded for All Stock Options, Stock Awards and SARs (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Compensation expense | $ 2,596 | $ 2,232 |
Stock-based Compensation - Unre
Stock-based Compensation - Unrecognized Compensation Costs for Stock Options, Stock Awards and SARs (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Stock Option [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Unrecognized compensation costs for stock options, stock awards and SARs | $ 2,935 | $ 1,655 |
Stock Awards [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Unrecognized compensation costs for stock options, stock awards and SARs | 5,712 | 3,180 |
SARs [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Unrecognized compensation costs for stock options, stock awards and SARs | $ 6,260 | $ 3,566 |
Stock-based Compensation - Shar
Stock-based Compensation - Share Based Payment Awards Granted in Period (Detail) | 3 Months Ended |
Mar. 31, 2019shares | |
Stock Option [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Stock options granted in period | 67,628 |
Stock Awards (at target) [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Awards granted in period | 41,528 |
SARs [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Awards granted in period | 146,613 |
Inventories - Composition of In
Inventories - Composition of Inventories (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 154,758 | $ 163,617 |
Raw materials | 60,270 | 67,911 |
Total inventories | $ 215,028 | $ 231,528 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($)Country | |
Operating Leased Assets [Line Items] | |
Right of use asset | $ 40,332 |
Operating lease, liability | $ 40,336 |
Number of countries leases reside | Country | 4 |
Percentage of value of leases reside | 93.00% |
Minimum [Member] | |
Operating Leased Assets [Line Items] | |
Lessee, operating lease, term of contract | 1 year |
Maximum [Member] | |
Operating Leased Assets [Line Items] | |
Lessee, operating lease, term of contract | 10 years |
Railcars [Member] | |
Operating Leased Assets [Line Items] | |
Percentage of lease asset categories | 49.00% |
Real Estate [Member] | |
Operating Leased Assets [Line Items] | |
Percentage of lease asset categories | 36.00% |
Real Estate [Member] | Minimum [Member] | |
Operating Leased Assets [Line Items] | |
Lessee, operating lease, term of contract | 1 year |
Real Estate [Member] | Maximum [Member] | |
Operating Leased Assets [Line Items] | |
Lessee, operating lease, term of contract | 50 years |
ASC 842 [Member] | |
Operating Leased Assets [Line Items] | |
Right of use asset | $ 42,400 |
Operating lease, liability | $ 42,400 |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Cost and Other Information (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Lease Cost | |
Operating lease cost | $ 2,688 |
Short-term lease cost | 970 |
Variable lease cost | 348 |
Total lease cost | 4,006 |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flow from operating leases | 2,696 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 294 |
Weighted-average remaining lease term-operating leases | 9 years |
Weighted-average discount rate-operating leases | 3.90% |
Leases - Schedule of Lease Liab
Leases - Schedule of Lease Liability Payments (Detail) $ in Thousands | Mar. 31, 2019USD ($) | |
Leases [Abstract] | ||
2019 (excluding the three months ended March 31, 2019) | $ 7,870 | |
2020 | 9,192 | |
2021 | 6,427 | |
2022 | 5,317 | |
2023 | 4,145 | |
Subsequent to 2023 | 17,231 | |
Total Undiscounted Cash Flows | 50,182 | |
Less: Imputed interest | (9,846) | |
Present value | 40,336 | |
Current operating lease liabilities | 8,975 | [1] |
Non-current operating lease liabilities | 31,361 | |
Total lease liabilities | $ 40,336 | |
[1] | This item is included in Accrued liabilities line on the Company’s Condensed Consolidated Balance Sheet |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments Under ASC 840 (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 9,740 |
2020 | 8,294 |
2021 | 6,027 |
2022 | 5,242 |
2023 | 4,101 |
Subsequent to 2023 | 16,593 |
Total minimum future rental payments | $ 49,997 |
Contingencies - Additional Info
Contingencies - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Site Contingency [Line Items] | |||
Environmental losses accrual | $ 23,400,000 | $ 23,400,000 | |
Cash expenitures related to legal and environmental matters | $ 200,000 | $ 200,000 | |
Contribution for future response costs | 5.00% | ||
Wilmington Site [Member] | |||
Site Contingency [Line Items] | |||
Payment of environmental response costs | $ 2,700,000 | ||
Minimum [Member] | |||
Site Contingency [Line Items] | |||
Environmental and legal losses | 23,400,000 | ||
Maximum [Member] | |||
Site Contingency [Line Items] | |||
Environmental and legal losses | $ 44,700,000 |
Postretirement Benefit Plans -
Postretirement Benefit Plans - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Net periodic benefit cost | $ (44) | $ 129 |
United States [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | 1,661 | 1,539 |
Expected return on plan assets | (2,361) | (2,321) |
Amortization of net actuarial loss | 652 | 937 |
Net periodic benefit cost | (48) | 155 |
United Kingdom [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | 142 | 148 |
Expected return on plan assets | (201) | (231) |
Amortization of net actuarial loss | 63 | 57 |
Net periodic benefit cost | $ 4 | $ (26) |
Postretirement Benefit Plans _2
Postretirement Benefit Plans - Defined Benefit Pension Plans - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Defined Contribution Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Balance of trust assets | $ 1,677,000 |
United States [Member] | Unfunded Plan [Member] | Non-qualified Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected contributions or payments to defined benefit plans | 312,000 |
Employer contributions or payments | 143,000 |
U.K Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected contributions or payments to defined benefit plans | 476,000 |
Employer contributions or payments | $ 173,000 |
Postretirement Benefit Plans _3
Postretirement Benefit Plans - Defined Contribution Plan Expenses for Company's Qualified Contribution Plans (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Defined Contribution Plan Disclosure [Line Items] | ||
Total defined contribution plan expenses | $ 3,291 | $ 2,699 |
Retirement Savings Contributions [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Total defined contribution plan expenses | 2,409 | 1,757 |
Profit Sharing Contributions [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Total defined contribution plan expenses | $ 882 | $ 942 |
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 | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Computation of Basic Earnings per Share | |||
Net income attributable to Stepan Company | [1],[2] | $ 24,984 | $ 31,952 |
Weighted-average number of common shares outstanding | 23,099 | 23,082 | |
Basic earnings per share | [1],[2] | $ 1.08 | $ 1.38 |
Computation of Diluted Earnings per Share | |||
Net income attributable to Stepan Company | [1] | $ 24,984 | $ 31,952 |
Weighted-average number of common shares outstanding | 23,099 | 23,082 | |
Add weighted-average net shares related to unvested stock awards (under treasury stock method) | 3 | 2 | |
Weighted-average shares applicable to diluted earnings | 23,332 | 23,389 | |
Net Income Per Diluted Common Share Attributable to Stepan Company | [1],[2] | $ 1.07 | $ 1.37 |
Stock Option [Member] | |||
Computation of Diluted Earnings per Share | |||
Add weighted-average net shares from assumed exercise of options (under treasury stock method) | [3] | 92 | 119 |
Stock Appreciation Rights (SARs) [Member] | |||
Computation of Diluted Earnings per Share | |||
Add weighted-average net shares from assumed exercise of options (under treasury stock method) | [3] | 108 | 122 |
Performance Stock Award [Member] | |||
Computation of Diluted Earnings per Share | |||
Add weighted-average net shares from assumed exercise of options (under treasury stock method) | 30 | 64 | |
[1] | The 2018 amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. | ||
[2] | The 2018 amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from the last in, first out (LIFO) basis to the first in, first out (FIFO) basis. | ||
[3] | Options/SARs to acquire 214,241 and 2,807 shares of Company common stock were excluded from the computations of diluted earnings per share for the three months ended March 31, 2019 and March 31, 2018, because the effect of including the instruments would have been antidilutive. |
Earnings Per Share - Computat_2
Earnings Per Share - Computations of Basic and Diluted Earnings Per Share (Parenthetical) (Detail) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Options and Stock Appreciation Rights (SARs) [Member] | ||
Earnings Per Share Basic [Line Items] | ||
Options to purchase shares of common stock were excluded from the computations of diluted earnings per share | 214,241 | 2,807 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 01, 2019 | Mar. 31, 2019 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |||
Reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from Tax Act | $ 5,325 | $ (5,325) | [1] |
[1] | Represents reclassification of the stranded tax effects resulting from the U.S. Tax Cuts and Jobs Act (Tax Act) from accumulated other comprehensive income (loss) to retained earnings in accordance with ASU 2018-02. See Note 19 for more details. |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Summary of Changes in Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | Jan. 01, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | ||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning Balance | [1] | $ 807,425 | $ 807,425 | ||
Other comprehensive income before reclassifications | 3,687 | $ 8,785 | |||
Amounts reclassified from AOCI | 541 | 750 | |||
Reclassification adjustment related to the Tax Act | 5,325 | (5,325) | [2] | ||
Net current-period other comprehensive income | (1,097) | 9,535 | |||
Ending Balance | [1] | 831,447 | |||
Foreign Currency Translation Adjustments [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning Balance | (108,481) | (108,481) | (70,561) | ||
Other comprehensive income before reclassifications | 3,687 | 8,785 | |||
Net current-period other comprehensive income | 3,687 | 8,785 | |||
Ending Balance | (104,794) | (61,776) | |||
Defined Benefit Pension Plan Adjustments [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning Balance | (33,083) | (33,083) | (29,093) | ||
Amounts reclassified from AOCI | 543 | 753 | |||
Reclassification adjustment related to the Tax Act | [2] | (5,325) | |||
Net current-period other comprehensive income | (4,782) | 753 | |||
Ending Balance | (37,865) | (28,340) | |||
Cash Flow Hedge Adjustments [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning Balance | 81 | 81 | 91 | ||
Amounts reclassified from AOCI | (2) | (3) | |||
Net current-period other comprehensive income | (2) | (3) | |||
Ending Balance | 79 | 88 | |||
AOCI Attributable to Parent [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning Balance | $ (141,483) | (141,483) | (99,563) | ||
Ending Balance | $ (142,580) | $ (90,028) | |||
[1] | The 2018 amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. | ||||
[2] | Represents reclassification of the stranded tax effects resulting from the U.S. Tax Cuts and Jobs Act (Tax Act) from accumulated other comprehensive income (loss) to retained earnings in accordance with ASU 2018-02. See Note 19 for more details. |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income (Loss) - Summary of Amounts Reclassifications Out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Income Before Provision for Income Taxes | [1],[2] | $ 31,030 | $ 39,292 |
Tax benefit | [2] | (6,052) | (7,347) |
Cost of Sales | [2] | 404,561 | 408,137 |
Defined Benefit Pension Plan Adjustments [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Amortization of defined benefit pension actuarial losses | [3],[4] | (715) | (994) |
Tax benefit | [3] | 172 | 241 |
Income applicable to common stock | [3] | (543) | (753) |
Cash Flow Hedge Adjustments [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Income Before Provision for Income Taxes | [3] | 2 | 3 |
Income applicable to common stock | [3] | 2 | 3 |
Cash Flow Hedge Adjustments [Member] | Foreign exchange contracts [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Cost of Sales | [3] | 2 | 3 |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Income applicable to common stock | [3] | $ (541) | $ (750) |
[1] | The 2018 amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. | ||
[2] | The 2018 amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from the last in, first out (LIFO) basis to the first in, first out (FIFO) basis. | ||
[3] | Amounts in parentheses denote expense to statement of income. | ||
[4] | This component of accumulated other comprehensive income is included in the computation of net periodic benefit cost (see Note 10 for additional details). |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2019Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Reporting - Operating S
Segment Reporting - Operating Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 489,170 | $ 499,335 |
Surfactants [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 349,650 | 358,940 |
Polymers [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 120,179 | 121,933 |
Specialty Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ 19,341 | $ 18,462 |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation of Segment Information to Consolidated Financial Statements (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Segment Reporting Information [Line Items] | |||
Operating Income | [1],[2] | $ 29,738 | $ 41,283 |
Business restructuring expenses (Note 17) | (733) | (358) | |
Interest expense, net | (1,853) | (3,151) | |
Other, net | 3,145 | 1,160 | |
Income Before Provision for Income Taxes | [1],[2] | 31,030 | 39,292 |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Income | [1] | 52,403 | 58,423 |
Operating Segments [Member] | Surfactants [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Income | [1] | 37,167 | 41,468 |
Operating Segments [Member] | Polymers [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Income | [1] | 12,105 | 17,305 |
Operating Segments [Member] | Specialty Products [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Income | 3,131 | (350) | |
Segment Reconciling Items [Member] | |||
Segment Reporting Information [Line Items] | |||
Unallocated corporate expenses | [3] | $ (21,932) | $ (16,782) |
[1] | The 2018 amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. | ||
[2] | The 2018 amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from the last in, first out (LIFO) basis to the first in, first out (FIFO) basis. | ||
[3] | 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. |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Additional Information (Detail) | Mar. 31, 2019USD ($) |
Revenue From Contract With Customer [Abstract] | |
Contract assets | $ 0 |
Contract liabilities | $ 0 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Summary of Geographic Disaggregation of Net Sales (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | ||
Net sales | $ 489,170 | $ 499,335 |
North America [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 301,645 | 308,693 |
Europe [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 116,899 | 123,803 |
Latin America [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 51,009 | 42,515 |
Asia [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 19,617 | 24,324 |
Surfactants [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 349,650 | 358,940 |
Surfactants [Member] | North America [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 214,297 | 220,405 |
Surfactants [Member] | Europe [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 71,478 | 78,371 |
Surfactants [Member] | Latin America [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 50,812 | 41,688 |
Surfactants [Member] | Asia [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 13,063 | 18,476 |
Polymers [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 120,179 | 121,933 |
Polymers [Member] | North America [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 71,323 | 73,474 |
Polymers [Member] | Europe [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 42,105 | 41,784 |
Polymers [Member] | Latin America [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 197 | 827 |
Polymers [Member] | Asia [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 6,554 | 5,848 |
Specialty Products [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 19,341 | 18,462 |
Specialty Products [Member] | North America [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 16,025 | 14,814 |
Specialty Products [Member] | Europe [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 3,316 | 3,648 |
Specialty Products [Member] | Latin America [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Specialty Products [Member] | Asia [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | $ 0 | $ 0 |
Debt - Debt (Detail)
Debt - Debt (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Total debt | $ 271,862 | $ 276,080 |
Less current maturities | 32,799 | 37,058 |
Long-term debt | 239,063 | 239,022 |
Unsecured private placement 3.95% note [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 99,651 | $ 99,640 |
Debt instrument interest rate percentage | 3.95% | 3.95% |
Unsecured private placement 3.95% note [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2021 | 2021 |
Unsecured private placement 3.95% note [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2027 | 2027 |
Unsecured private placement 3.86% note [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 99,667 | $ 99,653 |
Debt instrument interest rate percentage | 3.86% | 3.86% |
Unsecured private placement 3.86% note [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2019 | 2019 |
Unsecured private placement 3.86% note [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2025 | 2025 |
Unsecured private placement 4.86% note [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 46,253 | $ 46,243 |
Debt instrument interest rate percentage | 4.86% | 4.86% |
Unsecured private placement 4.86% note [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2019 | 2019 |
Unsecured private placement 4.86% note [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2023 | 2023 |
Unsecured private placement 5.88% note [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 22,777 | $ 22,772 |
Debt instrument interest rate percentage | 5.88% | 5.88% |
Unsecured private placement 5.88% note [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2019 | 2019 |
Unsecured private placement 5.88% note [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2022 | 2022 |
Debt of foreign subsidiaries Unsecured bank debt, foreign currency [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 3,514 | $ 7,772 |
Maturity Dates | 2019 | 2019 |
Debt - Debt (Parenthetical) (De
Debt - Debt (Parenthetical) (Detail) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Unamortized debt issuance cost | $ 938,000 | $ 978,000 |
Unsecured private placement 3.95% note [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance cost | 349,000 | 360,000 |
Unsecured private placement 3.86% note [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance cost | 333,000 | 347,000 |
Unsecured private placement 4.86% note [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance cost | 176,000 | 186,000 |
Unsecured private placement 5.88% note [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance cost | $ 80,000 | $ 85,000 |
Debt - Additional Information (
Debt - Additional Information (Detail) - Multi currency revolving credit agreement [Member] - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Revolving credit agreement | $ 350,000,000 | |
Credit agreement secured date | Jan. 30, 2023 | |
Letters of Credit Outstanding | $ 5,271,000 | |
Debt Outstanding | 0 | |
Unused Revolving credit | 344,729,000 | |
Unrestricted retained earnings | $ 235,249,000 | $ 214,101,000 |
Other, Net - Other Net in Conso
Other, Net - Other Net in Consolidated Statements of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Other Nonoperating Income Expense [Abstract] | ||
Foreign exchange gains | $ 600 | $ 1,053 |
Investment income | 97 | 139 |
Realized and unrealized gains on investments | 2,404 | 97 |
Net periodic benefit cost | 44 | (129) |
Other, net | $ 3,145 | $ 1,160 |
Business Restructuring - Additi
Business Restructuring - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019USD ($)Employees | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($) | |
Restructuring Cost And Reserve [Line Items] | ||||
Business restructuring | $ 733,000 | $ 358,000 | ||
Netherlands [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Number positions eliminated | Employees | 5 | |||
Severance costs | $ 396,000 | |||
Germany [Member] | Surfactants [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring costs | 1,591,000 | |||
Germany [Member] | Surfactants [Member] | Asset and Spare Part [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring costs | $ 1,404,000 | |||
Fieldsboro, NJ [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Business restructuring | 251,000 | $ 915,000 | ||
Longford Mills [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Business restructuring | $ 322,000 | |||
Longford Mills [Member] | Surfactants [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Number positions eliminated | Employees | 30 | |||
Business restructuring | $ 6,346,000 | |||
Termination Benefits [Member] | Netherlands [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Business restructuring | 79,000 | |||
Termination Benefits [Member] | Longford Mills [Member] | Surfactants [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Business restructuring | 1,594,000 | |||
Decommissioning Costs [Member] | Germany [Member] | Surfactants [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring costs | 187,000 | |||
Other Expense [Member] | Longford Mills [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Business restructuring | 322,000 | |||
Other Expense [Member] | Longford Mills [Member] | Surfactants [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Business restructuring | $ 4,752,000 |
Business Restructuring - Reconc
Business Restructuring - Reconciliation of Restructuring Liabilities (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Restructuring Cost And Reserve [Line Items] | ||
Expense recognized | $ 733 | $ 358 |
Longford Mills [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring liability | 343 | |
Expense recognized | 322 | |
Amounts paid | (401) | |
Foreign currency translation | 8 | |
Restructuring liability | 272 | |
Longford Mills [Member] | Termination Benefits [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring liability | 260 | |
Amounts paid | (79) | |
Foreign currency translation | 6 | |
Restructuring liability | 187 | |
Longford Mills [Member] | Other Expense [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring liability | 83 | |
Expense recognized | 322 | |
Amounts paid | (322) | |
Foreign currency translation | 2 | |
Restructuring liability | $ 85 |
Acquisition - Additional Inform
Acquisition - Additional Information (Detail) | Mar. 26, 2018USD ($)ft²T | Mar. 31, 2018USD ($) |
Business Acquisition [Line Items] | ||
Paid from cash on hand | $ 21,475,000 | |
2018 Acquisition [Member] | BASF Mexicana, S.A. DE C.V. [Member] | Surfactants [Member] | Ecatepec, Mexico [Member] | ||
Business Acquisition [Line Items] | ||
Capacity of production facility expected to be acquired | T | 50,000 | |
Warehouse space, laboratory and office space currently expected to be acquired | ft² | 124,000 | |
Paid from cash on hand | $ 22,852,000 | |
Intangible assets identified related to acquisition | $ 0 |
Acquisition - Summary of Assets
Acquisition - Summary of Assets Acquired (Detail) - 2018 Acquisition [Member] - BASF Mexicana, S.A. DE C.V. [Member] $ in Thousands | Mar. 26, 2018USD ($) |
Assets: | |
Property, plant and equipment | $ 14,464 |
Inventory | 5,687 |
Value-added tax receivables | 2,701 |
Total assets acquired | $ 22,852 |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 01, 2019 | Mar. 31, 2019 | |
Accounting Changes And Error Corrections [Abstract] | |||
Reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from Tax Act | $ 5,325 | $ (5,325) | [1] |
[1] | Represents reclassification of the stranded tax effects resulting from the U.S. Tax Cuts and Jobs Act (Tax Act) from accumulated other comprehensive income (loss) to retained earnings in accordance with ASU 2018-02. See Note 19 for more details. |