Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 28, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | SCL | |
Entity Registrant Name | STEPAN COMPANY | |
Entity Current Reporting Status | Yes | |
Entity Central Index Key | 0000094049 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 22,465,861 | |
Entity Tax Identification Number | 36-1823834 | |
Entity File Number | 1-4462 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 22 West Frontage Road | |
Entity Address, City or Town | Northfield | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60093 | |
City Area Code | 847 | |
Local Phone Number | 446-7500 | |
Security Exchange Name | NYSE | |
Title of 12(b) Security | Common Stock, $1 par value | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
Net Sales | $ 595,511 | $ 460,549 | $ 1,133,251 | $ 910,536 |
Cost of Sales | 483,830 | 362,054 | 912,590 | 732,772 |
Gross Profit | 111,681 | 98,495 | 220,661 | 177,764 |
Operating Expenses: | ||||
Selling | 14,990 | 12,921 | 29,494 | 26,453 |
Administrative | 23,974 | 20,731 | 46,612 | 39,603 |
Research, development and technical services | 14,988 | 13,531 | 30,137 | 27,358 |
Deferred compensation (income) expense | 958 | 6,464 | 3,652 | (859) |
Total Operating expenses | 54,910 | 53,647 | 109,895 | 92,555 |
Business restructuring expenses (Note 16) | (114) | (225) | (195) | (582) |
Operating Income | 56,657 | 44,623 | 110,571 | 84,627 |
Other Income (Expense): | ||||
Interest, net | (1,567) | (1,259) | (3,091) | (2,489) |
Other, net (Note 15) | 2,758 | 4,437 | 3,504 | 1,175 |
Nonoperating Income (Expense), Total | 1,191 | 3,178 | 413 | (1,314) |
Income Before Provision for Income Taxes | 57,848 | 47,801 | 110,984 | 83,313 |
Provision for Income Taxes | 14,545 | 11,958 | 27,070 | 19,931 |
Net Income | 43,303 | 35,843 | 83,914 | 63,382 |
Net Income Attributable to Noncontrolling Interest (Note 2) | (25) | (136) | (25) | (130) |
Net Income Attributable to Stepan Company | $ 43,278 | $ 35,707 | $ 83,889 | $ 63,252 |
Net Income Per Common Share Attributable to Stepan Company (Note 10): | ||||
Basic | $ 1.89 | $ 1.56 | $ 3.65 | $ 2.75 |
Diluted | $ 1.85 | $ 1.54 | $ 3.59 | $ 2.72 |
Shares Used to Compute Net Income Per Common Share Attributable to Stepan Company (Note 10): | ||||
Basic | 22,952 | 22,923 | 22,963 | 22,973 |
Diluted | 23,345 | 23,184 | 23,338 | 23,235 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Statement Of Income And Comprehensive Income [Abstract] | |||||
Net income | $ 43,303 | $ 35,843 | $ 83,914 | $ 63,382 | |
Other Comprehensive Income: | |||||
Foreign currency translation adjustments (Note 11) | [1] | 15,175 | 3,539 | (3,266) | (37,656) |
Defined benefit pension adjustments, net of tax (Note 11) | 876 | 808 | 1,750 | 1,616 | |
Derivative instrument activity, net of tax (Note 11) | (3) | (2) | (5) | (4) | |
Total Other Comprehensive Income | 16,048 | 4,345 | (1,521) | (36,044) | |
Comprehensive Income | 59,351 | 40,188 | 82,393 | 27,338 | |
Comprehensive Income Attributable to Noncontrolling Interest (Note 2) | (51) | (138) | (43) | (119) | |
Comprehensive Income Attributable to Stepan Company | $ 59,300 | $ 40,050 | $ 82,350 | $ 27,219 | |
[1] | Includes foreign currency translation adjustments related to noncontrolling interest. |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 127,053 | $ 349,938 |
Receivables, net | 391,730 | 301,318 |
Inventories (Note 6) | 266,088 | 218,783 |
Other current assets | 30,984 | 35,612 |
Total current assets | 815,855 | 905,651 |
Property, Plant and Equipment: | ||
Cost | 1,991,390 | 1,872,650 |
Less: Accumulated depreciation | (1,226,606) | (1,189,983) |
Property, plant and equipment, net | 764,784 | 682,667 |
Goodwill, net (Note 17) | 97,988 | 27,972 |
Other intangible assets, net (Note 17) | 65,461 | 24,068 |
Long-term investments (Note 3) | 32,576 | 30,652 |
Operating lease assets (Note 7) | 69,942 | 62,421 |
Other non-current assets | 40,699 | 18,905 |
Total assets | 1,887,305 | 1,752,336 |
Current Liabilities: | ||
Current maturities of long-term debt (Note 14) | 42,352 | 37,857 |
Accounts payable | 286,917 | 236,750 |
Accrued liabilities | 135,232 | 141,947 |
Total current liabilities | 464,501 | 416,554 |
Deferred income taxes | 9,995 | 20,745 |
Long-term debt, less current maturities (Note 14) | 196,529 | 160,812 |
Non-current operating lease liabilities (Note 7) | 58,180 | 51,567 |
Other non-current liabilities | 107,584 | 114,293 |
Commitments and Contingencies (Note 8) | ||
Equity: | ||
Common stock, $1 par value; authorized 60,000,000 shares; Issued 26,752,093 shares in 2021 and 26,658,032 shares in 2020 | 26,752 | 26,658 |
Additional paid-in capital | 213,969 | 206,716 |
Accumulated other comprehensive loss (Note 11) | (138,420) | (136,881) |
Retained earnings | 1,093,994 | 1,023,829 |
Less: Common treasury stock, at cost, 4,286,578 shares in 2021 and 4,185,242 shares in 2020 | (147,494) | (133,629) |
Total Stepan Company stockholders’ equity | 1,048,801 | 986,693 |
Noncontrolling interest (Note 2) | 1,715 | 1,672 |
Total equity | 1,050,516 | 988,365 |
Total liabilities and equity | $ 1,887,305 | $ 1,752,336 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
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 | 26,752,093 | 26,658,032 |
Treasury stock, shares | 4,286,578 | 4,185,242 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash Flows From Operating Activities | ||
Net income | $ 83,914 | $ 63,382 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 45,311 | 40,329 |
Deferred compensation | 3,652 | (859) |
Realized and unrealized gains on long-term investments | (2,761) | (75) |
Stock-based compensation | 5,346 | 4,191 |
Deferred income taxes | (39,475) | 1,427 |
Other non-cash items | 92 | 655 |
Changes in assets and liabilities: | ||
Receivables, net | (68,033) | (23,253) |
Inventories | (35,747) | (9,740) |
Other current assets | (63) | (6,077) |
Accounts payable and accrued liabilities | 34,027 | (8,284) |
Pension liabilities | (971) | (323) |
Environmental and legal liabilities | (463) | (3,116) |
Deferred revenues | (134) | 243 |
Net Cash Provided By Operating Activities | 24,695 | 58,500 |
Cash Flows From Investing Activities | ||
Expenditures for property, plant and equipment | (74,868) | (54,671) |
Asset acquisition (Note 17) | (3,503) | (2,040) |
Business acquisition, net of cash acquired (Note 17) | (184,560) | |
Other, net | 1,430 | 2,331 |
Net Cash Used In Investing Activities | (261,501) | (54,380) |
Cash Flows From Financing Activities | ||
Revolving debt and bank overdrafts, net (Note 14) | 4,495 | |
Other debt borrowings (Note 14) | 50,000 | |
Other debt repayments | (14,286) | (14,286) |
Dividends paid | (13,724) | (12,371) |
Company stock repurchased | (10,895) | (13,753) |
Stock option exercises | 1,087 | 392 |
Other, net | (1,920) | (415) |
Net Cash (Used In) Provided By Financing Activities | 14,757 | (40,433) |
Effect of Exchange Rate Changes on Cash | (836) | (6,193) |
Net Decrease in Cash and Cash Equivalents | (222,885) | (42,506) |
Cash and Cash Equivalents at Beginning of Period | 349,938 | 315,383 |
Cash and Cash Equivalents at End of Period | 127,053 | 272,877 |
Supplemental Cash Flow Information | ||
Cash payments of income taxes, net of refunds/payments | 43,472 | 7,501 |
Cash payments of interest | $ 4,622 | $ 4,810 |
Condensed Consolidated Financia
Condensed Consolidated Financial Statements | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021, and its results of operations for the three and six months ended June 30, 2021 and 2020, and cash flows for the six months ended June 30, 2021 and 2020, 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 2020 Annual Report on Form 10-K. |
Reconciliations of Equity
Reconciliations of Equity | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Reconciliations of Equity | 2. RECONCILIATIONS OF EQUITY Below are reconciliations of total equity, Company equity and equity attributable to noncontrolling interests for the three and six months ended June 30, 2021 and 2020: (In thousands, except share and per share amounts) Total Common Stock Additional Paid-in Capital Common Treasury Stock Accumulated Other Comprehensive Income (Loss) Retained Earnings Noncontrolling Interest (1) Balance at March 31, 2021 1,003,946 26,726 209,471 (137,052 ) (154,442 ) 1,057,579 1,664 Issuance of 10,779 shares of common stock under stock option plan 706 11 695 — — — — Purchase of 73,745 shares of common stock (9,906 ) — — (9,906 ) — — — Stock-based and deferred compensation 3,282 15 3,803 (536 ) — — — Net income 43,303 — — — — 43,278 25 Other comprehensive income 16,048 — — — 16,022 — 26 Cash dividends paid: Common stock ($0.305 per share) (6,863 ) — — — — (6,863 ) — Balance at June 30, 2021 $ 1,050,516 $ 26,752 $ 213,969 $ (147,494 ) $ (138,420 ) $ 1,093,994 $ 1,715 (In thousands, except share and per share amounts) Total Common Stock Additional Paid-in Capital Common Treasury Stock Accumulated Other Comprehensive Income (Loss) Retained Earnings Noncontrolling Interest (1) Balance at December 31, 2020 $ 988,365 $ 26,658 $ 206,716 $ (133,629 ) $ (136,881 ) $ 1,023,829 $ 1,672 Issuance of 16,565 shares of common stock under stock option plan 1,087 17 1,070 — — — — Purchase of 82,045 shares of common stock (10,895 ) — — (10,895 ) — — — Stock-based and deferred compensation 3,290 77 6,183 (2,970 ) — — — Net income 83,914 — — — — 83,889 25 Other comprehensive income (1,521 ) — — — (1,539 ) — 18 Cash dividends paid: Common stock ($0.610 per share) (13,724 ) — — — — (13,724 ) — Balance at June 30, 2021 $ 1,050,516 $ 26,752 $ 213,969 $ (147,494 ) $ (138,420 ) $ 1,093,994 $ 1,715 (In thousands, except share and per share amounts) Total Common Stock Additional Paid-in Capital Common Treasury Stock Accumulated Other Comprehensive Income (Loss) Retained Earnings Noncontrolling Interest (1) Balance at March 31, 2020 867,472 26,541 195,661 (122,685 ) (176,546 ) 943,807 694 Issuance of 3,933 shares of common stock under stock option plan 237 4 233 — — — — Purchase of 71,555 shares of common stock (6,510 ) — — (6,510 ) — — — Stock-based and deferred compensation 3,043 7 3,053 (17 ) — — — Net income 35,843 — — — — 35,707 136 Other comprehensive income 4,345 — — — 4,343 — 2 Cash dividends paid: Common stock ($0.275 per share) (6,169 ) — — — — (6,169 ) — Balance at June 30, 2020 $ 898,261 $ 26,552 $ 198,947 $ (129,212 ) $ (172,203 ) $ 973,345 $ 832 (In thousands, except share and per share amounts) Total Common Stock Additional Paid-in Capital Common Treasury Stock Accumulated Other Comprehensive Income (Loss) Retained Earnings Noncontrolling Interest (1) Balance, December 31, 2019 $ 892,496 $ 26,493 $ 193,135 $ (114,139 ) $ (136,170 ) $ 922,464 $ 713 Issuance of 6,680 shares of common stock under stock option plan 392 7 385 — — — — Purchase of 160,780 shares of common stock (13,753 ) — — (13,753 ) — — — Stock-based and deferred compensation 4,159 52 5,427 (1,320 ) — — — Net income 63,382 — — — — 63,252 130 Other comprehensive income (36,044 ) — — — (36,033 ) — (11 ) Cash dividends paid: Common stock ($0.550 per share) (12,371 ) — — — — (12,371 ) — Balance at June 30, 2020 $ 898,261 $ 26,552 $ 198,947 $ (129,212 ) $ (172,203 ) $ 973,345 $ 832 (1) |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3 . FAIR VALUE MEASUREMENTS The following were the financial instruments held by the Company at June 30, 2021, and December 31, 2020, 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. Fair value of cash and cash equivalents is a Level 1 measurement. Derivative assets and liabilities Derivative assets and liabilities include the foreign currency exchange contracts discussed in Note 4, Derivate Instruments Long-term investments Long-term investments include 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 9, Postretirement Benefit Plans 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 June 30, 2021, and December 31, 2020, 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 $614,000 and $617,000 as of June 30, 2021 and December 31, 2020, respectively): (In thousands) June 30, 2021 December 31, 2020 Fair value $ 248,832 $ 210,370 Carrying value 239,495 199,286 The following tables present financial assets and liabilities, excluding cash and cash equivalents, measured on a recurring basis at fair value as of June 30, 2021, and December 31, 2020, and the level within the fair value hierarchy in which the fair value measurements fall: (In thousands) June 30, 2021 Level 1 Level 2 Level 3 Mutual fund assets $ 32,576 $ 32,576 $ — $ — Derivative assets: Foreign currency contracts 256 — 256 — Total assets at fair value $ 32,832 $ 32,576 $ 256 $ — Derivative liabilities: Foreign currency contracts $ 2 $ — $ 2 $ — (In thousands) December 31, 2020 Level 1 Level 2 Level 3 Mutual fund assets $ 30,652 $ 30,652 $ — $ — Derivative assets: Foreign currency contracts 335 — 335 — Total assets at fair value $ 30,987 $ 30,652 $ 335 $ — Derivative liabilities: Foreign currency contracts $ 566 $ — $ 566 $ — |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 4 . DERIVATIVE INSTRUMENTS The Company is exposed to certain risks relating to its ongoing business operations. The primary risk managed by the use of derivative instruments is foreign currency exchange risk. The Company holds forward foreign currency exchange contracts that are not designated as any type of accounting hedge as defined by GAAP. The Company uses these contracts to manage its exposure to exchange rate fluctuations on certain Company subsidiary cash, accounts receivable, accounts payable and other obligation balances that are denominated in currencies other than the entities’ functional currencies. The forward foreign exchange contracts are recognized on the balance sheet as either an asset or a liability measured at fair value. Gains and losses arising from recording the foreign exchange contracts at fair value are reported in earnings as offsets to the losses and gains reported in earnings arising from the re-measurement of the asset and liability balances into the applicable functional currencies. At June 30, 2021, and December 31, 2020, 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 $45,745,000 and $48,336,000, respectively. The fair values of the derivative instruments held by the Company on June 30, 2021, and December 31, 200, are disclosed in Note 3, Fair Value Measurements Accumulated Other Comprehensive Income (Loss) |
Stock-based Compensation
Stock-based Compensation | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation | 5 . STOCK-BASED COMPENSATION On June 30, 2021, 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 in 2015 and later 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 June 30 Six Months Ended June 30 2021 2020 2021 2020 $ 2,807 $ 2,989 $ 5,346 $ 4,191 The increase in stock-based compensation expense for the first six months of 2021 compared to the first six months of 2020 was primarily attributable to performance awards and cash-settled SARs. The increase in performance awards compensation expense reflects management’s assessment of profitability performance targets. The increase in cash-settled SARS compensation expense reflects an increase in the market value of Company stock during the first half of 2021 versus a decrease in the market value of Company stock during the first half of 2020. Unrecognized compensation costs for stock options, stock awards and SARs were as follows: (In thousands) June 30, 2021 December 31, 2020 Stock options $ 3,255 $ 1,993 Stock awards 7,995 5,313 SARs 7,055 4,341 The increases in unrecognized compensation costs for stock options, stock awards and SARs reflected the 2021 grants of: Shares Stock options 66,134 Stock awards (at target) 41,228 SARs 142,451 The unrecognized compensation costs at June 30, 2021, are expected to be recognized over weighted-average periods of 2.0 years |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | 6 . INVENTORIES The composition of inventories at June 30, 2021, and December 31, 2020, was as follows: (In thousands) June 30, 2021 December 31, 2020 Finished goods $ 160,467 $ 148,878 Raw materials 105,621 69,905 Total inventories $ 266,088 $ 218,783 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Leases | 7. LEASES The Company’s operating leases are primarily comprised of railcar, real estate, storage tank, auto, trailer and manufacturing/office equipment leases. Railcars and real estate comprise approximately 23 percent and 63 percent, respectively, of the Company’s consolidated ROU asset balance. Except for 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 four principal real estate leases consist of the office lease for new corporate headquarters in Northbrook, Illinois and land leases in the Philippines, Singapore and Lake Providence, Louisiana. As of June 30, 2021, the Company had railcar leases, valued at approximately $3,154,000, that had not commenced. These leases will commence in the third quarter of 2021 and the first quarter of 2022. 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, Philippines, Singapore, Brazil 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 five countries identified above represents approximately 98 percent of the Company’s consolidated ROU asset balance. Lease cost is recognized in both the Cost of Sales and Operating Expenses sections of the Condensed Consolidated Statements of Income . (In thousands) Three months ended June 30, 2021 Six months ended June 30, 2021 Lease Cost Operating lease cost $ 3,844 $ 7,570 Short-term lease cost 1,284 2,553 Variable lease cost 222 505 Total lease cost $ 5,350 $ 10,628 Other Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow from operating leases $ 3,688 $ 6,977 Right-of-use assets obtained in exchange for operating lease liabilities 1,003 13,630 The following table outlines maturities of lease liabilities as of June 30, 2021: (In thousands) Undiscounted Cash Flows: 2021 (excluding the six months ended June 30, 2021) $ 7,432 2022 13,516 2023 11,119 2024 7,032 2025 5,336 Subsequent to 2025 39,610 Total Undiscounted Cash Flows $ 84,045 Less: Imputed interest (13,301 ) Present value $ 70,744 Current operating lease liabilities (1) 12,564 Non-current operating lease liabilities 58,180 Total lease liabilities $ 70,744 (1) This item is included in the Accrued liabilities line on the Company’s Condensed Consolidated Balance Sheet. Weighted-average remaining lease term-operating leases 10 Years Weighted-average discount rate-operating leases 3.0% |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingencies | 8 . 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 assessment, protection and remediation 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 government authorities as a potentially responsible party (PRP) at a number of sites where cleanup costs have been or may be incurred by the Company 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 and claims. In determining the appropriate level of environmental reserves, the Company considers several factors such as information obtained from investigatory studies; changes in the scope of remediation; the interpretation, application and enforcement of laws and regulations; changes in the costs of remediation programs; the development of alternative cleanup technologies and methods; and the relative level of the Company’s involvement at various sites for which the Company is allegedly associated. The level of annual expenditures for remedial, monitoring and investigatory activities will change in the future as major components of planned remediation activities are completed and the scope, timing and costs of existing activities are changed . As of June 30, 202 1 , the Company estimated a range of possible environmental losses and legal losses of $ to $ . Within the range of possible environmental losses and legal losses, management has currently concluded that no single amount is more likely to occur than any other amounts in the range and, thus, has accrued at the lower end of the range. These accruals totaled $ at June 30, 202 1 and $ 22,884,000 at December 31, 20 20 . Although the Company believes that its reserves are adequate for contingencies, it is possible due to the uncertainties noted above, that additional reserves could be required in the future. Cash expenditures related to legal matters and environmental matters approximated $ and $ 3,075,000 for the six-month periods ended June 30, 202 1 and 20 20 , respectively . For certain sites, the Company has responded to information requests made by federal, state or local government agencies but has received no response confirming or denying the Company’s stated positions. As such, estimates of the total costs, or range of possible costs, of remediation, if any, or the Company’s share of such costs, if any, cannot be determined with respect to these sites. Consequently, the Company is unable to predict the effect thereof on the Company’s financial position, cash flows and results of operations. 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 material 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 Company’s major contingencies at June 30, 2021: 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 (collectively, the Maywood site) were listed on the National Priorities List in September 1993 pursuant to the provisions of CERCLA because of alleged chemical contamination. Pursuant to (i) a September 21, 1987 Administrative Order on Consent entered into between the U.S. Environmental Protection Agency (USEPA) and the Company for property formerly owned by the Company at the Maywood site and (ii) the issuance of an order on November 12, 2004 by the USEPA to the Company for property currently owned by the Company at the Maywood site, the Company has completed various Remedial Investigation Feasibility Studies (RI/FS), and on September 24, 2014, USEPA issued its Record of Decision (ROD) for chemically-contaminated soil at the Maywood site, which requires the Company to perform remedial cleanup of the soil and buried waste. The USEPA has not yet issued a ROD for chemically-contaminated groundwater at the Maywood site. Based on the most current information available, the Company believes its recorded liability is reasonable having considered the range of estimated costs 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 the USEPA, as the design of the remedial action is finalized, if a groundwater ROD is issued or if other PRPs are identified. The ultimate amount for which the Company is liable could differ materially 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. 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 the Cooperative Agreement, the United States is responsible for the removal of radioactive waste at the Maywood site, including past and future remediation costs at the site. 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 generated by the Company at several sites in New Jersey, including the D’Imperio site. The Company was named as a PRP in an October 2, 1998, lawsuit in the U.S. District Court for the District of New Jersey that involved the D’Imperio Site. In 2020, the PRPs were provided with updated remediation cost estimates by the PRP group technical consultant and project manager, which the Company considered in its 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 continues at the D’Imperio 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 materially from the current recorded liability . Wilmington Site The Company is currently contractually obligated to contribute to the environmental response costs associated with the Company’s formerly-owned site in Wilmington, Massachusetts (the Wilmington site). Remediation at this site is being managed by its current owner to whom the Company sold the property in 1980. Under the Company’s October 1, 1993, agreement with the current owner of the Wilmington site, 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 $3,105,000 for the Company’s portion of environmental response costs at the Wilmington site through June 30, 2021. 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 materially from the current recorded liability. The Company and other prior owners of the Wilmington site 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 its Millsdale, Illinois and Fieldsboro, New Jersey 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. Based on current information, the Company believes that its recorded liability for the remediation of the affected areas is appropriate based on an estimate of expected costs. However, actual costs could differ materially from current recorded liability. |
Postretirement Benefit Plans
Postretirement Benefit Plans | 6 Months Ended |
Jun. 30, 2021 | |
Compensation And Retirement Disclosure [Abstract] | |
Postretirement Benefit Plans | 9 . POSTRETIREMENT BENEFIT PLANS Defined Benefit Pension Plans The Company sponsors various funded qualified and unfunded non-qualified defined benefit pension plans, the most significant of which cover employees in the U.S. and U.K. locations. The U.S. and U.K. defined benefit pension plans are frozen and service benefits are no longer being accrued. Components of Net Periodic Benefit Cost UNITED STATES (In thousands) Three Months Ended June 30 Six Months Ended June 30 2021 2020 2021 2020 Interest cost $ 1,177 $ 1,421 $ 2,354 $ 2,842 Expected return on plan assets (2,586 ) (2,437 ) (5,171 ) (4,874 ) Amortization of net actuarial loss 1,144 1,052 2,288 2,104 Net periodic benefit cost (income) $ (265 ) $ 36 $ (529 ) $ 72 UNITED KINGDOM (In thousands) Three Months Ended June 30 Six Months Ended June 30 2021 2020 2021 2020 Interest cost $ 91 $ 107 $ 179 $ 216 Expected return on plan assets (81 ) (133 ) (162 ) (267 ) Amortization of net actuarial loss 18 19 35 38 Net periodic benefit cost (income) $ 28 $ (7 ) $ 52 $ (13 ) 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 its funded U.S. qualified defined benefit plans. Approximately $274,000 is expected to be paid related to the unfunded non-qualified plans in 202 1 . Of such amount, $ had been paid related to the non-qualified plans as of June 30, 202 1 . U.K. Plan The Company’s U.K. subsidiary expects to contribute approximately $495,000 to its defined benefit pension plan in 2021. Of such amount, $272,000 had been contributed to the plan as of June 30, 2021. Defined Contribution Plans The Company sponsors retirement defined contribution plans that cover eligible U.S. and U.K. employees. The Company’s U.S. retirement contributions 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 six months ended June 30, 2021 and 2020, the Company made 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 2020 and 2021, profit sharing contributions for U.S. employees were made to the employee stock ownership plan. Profit sharing contributions are allocated to participant accounts based on participant base earnings. Defined contribution plan expenses for the Company’s qualified contribution plans were as follows: (In thousands) Three Months Ended June 30 Six Months Ended June 30 2021 2020 2021 2020 Retirement savings contributions $ 1,978 $ 1,950 $ 4,017 $ 3,708 Profit sharing contributions plan 1,865 1,483 3,731 2,458 Total defined contribution plan expenses $ 3,843 $ 3,433 $ 7,748 $ 6,166 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 condensed 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 condensed consolidated statements of income. The liabilities related to the supplemental plans increase (i.e., supplemental plan expense is recognized) when the value of the trust assets appreciates and decrease when the value of the trust assets declines (i.e., supplemental plan income is recognized). At June 30, 2021, the balance of the trust assets was $2,111,000, which equaled the balance of the supplemental plan liabilities. See the long-term investments section in Note 3, Fair Value Measurements |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 10 . EARNINGS PER SHARE Below are the computations of basic and diluted earnings per share for the three and six months ended June 30, 2021 and 2020: (In thousands, except per share amounts) Three Months Ended June 30 Six Months Ended June 30 2021 2020 2021 2020 Computation of Basic Earnings per Share Net income attributable to Stepan Company $ 43,278 $ 35,707 $ 83,889 $ 63,252 Weighted-average number of common shares outstanding 22,952 22,923 22,963 22,973 Basic earnings per share $ 1.89 $ 1.56 $ 3.65 $ 2.75 Computation of Diluted Earnings per Share Net income attributable to Stepan Company $ 43,278 $ 35,707 $ 83,889 $ 63,252 Weighted-average number of shares outstanding 22,952 22,923 22,963 22,973 Add weighted-average net shares from assumed exercise of options (under treasury stock method) (1) 152 100 146 101 Add weighted-average net shares related to unvested stock awards (under treasury stock method) 1 1 1 1 Add weighted-average net shares from assumed exercise of SARs (under treasury stock method) (1) 190 125 181 127 Add weighted-average contingently issuable net shares related to performance stock awards (under treasury stock method) 50 35 47 33 Weighted-average shares applicable to diluted earnings 23,345 23,184 23,338 23,235 Diluted earnings per share $ 1.85 $ 1.54 3.59 $ 2.72 (1) No |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 11. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Below is the change in the Company’s AOCI balance by component (net of income taxes) for the three and six months ended June 30, 2021 and 2020: (In thousands) Foreign Currency Translation Adjustments Defined Benefit Pension Plan Adjustments Cash Flow Hedge Adjustments Total Balance at March 31, 2020 $ (145,219 ) $ (31,397 ) $ 70 $ (176,546 ) Other comprehensive income before reclassifications 3,537 — — 3,537 Amounts reclassified from AOCI — 808 (2 ) 806 Net current-period other comprehensive income 3,537 808 (2 ) 4,343 Balance at June 30, 2020 $ (141,682 ) $ (30,589 ) $ 68 $ (172,203 ) Balance at March 31, 2021 $ (125,516 ) $ (28,987 ) $ 61 $ (154,442 ) Other comprehensive income before reclassifications 15,149 — — 15,149 Amounts reclassified from AOCI — 876 (3 ) 873 Net current-period other comprehensive income 15,149 876 (3 ) 16,022 Balance at June 30, 2021 $ (110,367 ) $ (28,111 ) $ 58 $ (138,420 ) Balance at December 31, 2019 $ (104,037 ) $ (32,205 ) $ 72 $ (136,170 ) Other comprehensive income before reclassifications (37,645 ) — — (37,645 ) Amounts reclassified from AOCI — 1,616 (4 ) 1,612 Net current-period other comprehensive income (37,645 ) 1,616 (4 ) (36,033 ) Balance at June 30, 2020 $ (141,682 ) $ (30,589 ) $ 68 $ (172,203 ) Balance at December 31, 2020 $ (107,083 ) $ (29,861 ) $ 63 $ (136,881 ) Other comprehensive income before reclassifications (3,284 ) — — (3,284 ) Amounts reclassified from AOCI — 1,750 (5 ) 1,745 Net current-period other comprehensive income (3,284 ) 1,750 (5 ) (1,539 ) Balance at June 30, 2021 $ (110,367 ) $ (28,111 ) $ 58 $ (138,420 ) Information regarding the reclassifications out of AOCI for the three- and six-month periods ended June 30, 2021 and 2020, is displayed below: (In thousands) Amount Reclassified from AOCI (1) AOCI Components Three Months Ended June 30 Six Months Ended June 30 Affected Line Item in Consolidated Statements of Income 2021 2020 2021 2020 Amortization of defined benefit pension actuarial losses $ (1,162 ) $ (1,071 ) $ (2,323 ) $ (2,142 ) (2) 286 263 573 526 Tax benefit $ (876 ) $ (808 ) $ (1,750 ) $ (1,616 ) Net of tax Gains and losses on cash flow hedges: Foreign exchange contracts 3 2 5 4 Cost of sales 3 2 5 4 Total before tax — — — — Tax benefit $ 3 $ 2 $ 5 $ 4 Net of tax Total reclassifications for the period $ (873 ) $ (806 ) $ (1,745 ) $ (1,612 ) Net of tax ( 1 ) Amounts in parentheses denote expense to statement of income. ( 2 ) This component of accumulated other comprehensive income is included in the computation of net periodic benefit cost. See Note 9, Postretirement Benefit Plans , of the notes to the Company’s condensed consolidated financial statements (included in Item 1 of this Form 10-Q) for additional details. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting | 12. SEGMENT REPORTING The Company has three reportable segments: Surfactants, Polymers and Specialty Products. Net sales by segment for the three and six months ended June 30, 2021 and 2020, were as follows: (In thousands) Three Months Ended June 30 Six Months Ended June 30 2021 2020 2021 2020 Segment Net Sales Surfactants $ 384,002 $ 332,335 $ 754,938 $ 659,406 Polymers 190,538 112,409 340,923 218,900 Specialty Products 20,971 15,805 37,390 32,230 Total $ 595,511 $ 460,549 $ 1,133,251 $ 910,536 Segment operating income and reconciliations of segment operating income to income before provision for income taxes for the three and six months ended June 30, 2021 and 2020, are summarized below: (In thousands) Three Months Ended June 30 Six Months Ended June 30 2021 2020 2021 2020 Segment Operating Income Surfactants $ 45,896 $ 48,503 $ 99,106 $ 84,659 Polymers 23,025 15,527 40,976 23,043 Specialty Products 6,977 3,226 9,610 7,210 Segment operating income 75,898 67,256 149,692 114,912 Business restructuring (114 ) (225 ) (195 ) (582 ) Unallocated corporate expenses (1) (19,127 ) (22,408 ) (38,926 ) (29,703 ) Consolidated operating income 56,657 44,623 110,571 84,627 Other Income (Expense) Interest, net (1,567 ) (1,259 ) (3,091 ) (2,489 ) Other, net 2,758 4,437 3,504 1,175 Income before provision for income taxes $ 57,848 $ 47,801 $ 110,984 $ 83,313 (1) Unallocated corporate expenses primarily comprise corporate administrative expenses (e.g., corporate finance, legal, human resources, information systems, deferred compensation and environmental remediation) that are not included in segment operating income and not used to evaluate segment performance. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contracts with Customers | 13. REVENUE FROM CONTRACTS WITH CUSTOMERS 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 June 30, 2021, the Company had $641,000 of contract liabilities and no contract assets. 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 rare as it would require a customer to make a payment prior to a performance obligation being satisfied. When such situations do arise, the Company would maintain a deferred revenue liability until the time a performance obligation has been satisfied. The Company recognized $773,000 of revenue in the first six months of 2021 from pre-existing contract liabilities at December 31, 2020. During 2020 the Company recognized $10,709,000 of long-term deferred revenue associated with a payment received to defray the cost of capital expenditures necessary to service a customer’s future product needs. This deferred revenue will be recognized over the period of the contract. As of June 30, 2021, no revenue has been recognized from this contract. The tables below provide a geographic disaggregation of net sales for the three and six months ended June 30, 2021 and 2020. 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 June 30, 2021 (In thousands) Surfactants Polymers Specialty Products Total Geographic Market North America $ 221,645 $ 95,591 $ 17,818 $ 335,054 Europe 65,339 82,453 2,436 150,228 Latin America 79,968 986 717 81,671 Asia 17,050 11,508 — 28,558 Total $ 384,002 $ 190,538 $ 20,971 $ 595,511 For the Three Months Ended June 30, 2020 (In thousands) Surfactants Polymers Specialty Products Total Geographic Market North America $ 207,571 $ 68,780 $ 13,329 $ 289,680 Europe 55,812 32,692 2,476 90,980 Latin America 56,194 463 — 56,657 Asia 12,758 10,474 — 23,232 Total $ 332,335 $ 112,409 $ 15,805 $ 460,549 For the Six Months Ended June 30, 2021 (In thousands) Surfactants Polymers Specialty Products Total Geographic Market North America $ 442,580 $ 166,469 $ 31,755 $ 640,804 Europe 136,433 150,753 4,918 292,104 Latin America 140,137 1,976 717 142,830 Asia 35,788 21,725 — 57,513 Total $ 754,938 $ 340,923 $ 37,390 $ 1,133,251 For the Six Months Ended June 30, 2020 (In thousands) Surfactants Polymers Specialty Products Total Geographic Market North America $ 415,517 $ 130,621 $ 26,823 $ 572,961 Europe 115,472 69,252 5,407 190,131 Latin America 102,704 1,102 — 103,806 Asia 25,713 17,925 — 43,638 Total $ 659,406 $ 218,900 $ 32,230 $ 910,536 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | 14. DEBT At June 30, 2021, and December 31, 2020, debt was comprised of the following: (In thousands) Maturity Dates June 30, 2021 December 31, 2020 Unsecured private placement notes 3.95% (net of unamortized debt issuance cost of $251 and $273 for 2021 and 2020, respectively) 2021-2027 $ 99,749 $ 99,727 3.86% (net of unamortized debt issuance cost of $208 and $236 for 2021 and 2020, respectively) 2021-2025 56,935 71,193 4.86% (net of unamortized debt issuance cost of $89 and $108 for 2021 and 2020, respectively) 2021-2023 27,768 27,749 2.30% (net of unamortized debt issuance cost of $66 and $0 for 2021 and 2020, respectively) 2024-2028 49,934 — Debt of foreign subsidiaries Unsecured bank debt, foreign currency 2021 4,495 — Total debt $ 238,881 $ 198,669 Less current maturities 42,352 37,857 Long-term debt $ 196,529 $ 160,812 On June 10, 2021, the Company entered into a note purchase agreement pursuant to which it issued and sold $50,000,000 in aggregate principal amount of 2.30% Senior Notes, Series 2021-A, due June 10, 2028 (the Series 2021-A Notes). The Series 2021-A Notes bear interest at a fixed rate of 2.30%, with interest to be paid semi-annually and with equal annual principal payments beginning on June 10, 2024 and continuing through final maturity on June 10, 2028. The proceeds of the issuance of the Series 2021-A Notes are being used primarily for capital expenditures, to pay down existing debt and for other corporate purposes. This note purchase agreement requires the maintenance of certain financial ratios and covenants that are substantially similar to the Company’s existing long-term debt and provides for customary events of default. The Company has a committed $350,000,000 multi-currency revolving credit agreement that expires on January 30, 2023. The Company maintains import letters of credit, and standby letters of credit under its workers’ compensation insurance agreements and for other purposes, as needed from time to time, which are issued under the revolving credit agreement. As of June 30, 2021, the Company had outstanding letters of credit totaling $6,993,000 and no borrowings under the revolving credit agreement. There was $343,007,000 available under the revolving credit agreement as of June 30, 2021. 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 $434,265,000 and $373,884,000 at June 30, 2021 and December 31, 2020, respectively. |
Other, Net
Other, Net | 6 Months Ended |
Jun. 30, 2021 | |
Other Income And Expenses [Abstract] | |
Other, Net | 15. OTHER, NET Other, net in the consolidated statements of income included the following: (In thousands) Three Months Ended June 30 Six Months Ended June 30 2021 2020 2021 2020 Foreign exchange (losses) gains $ 106 $ 423 $ (229 ) $ 991 Investment income 189 93 495 168 Realized and unrealized gains on investments 2,227 3,950 2,761 75 Net periodic pension benefit cost 236 (29 ) 477 (59 ) Other, net $ 2,758 $ 4,437 $ 3,504 $ 1,175 |
Business Restructuring
Business Restructuring | 6 Months Ended |
Jun. 30, 2021 | |
Restructuring And Related Activities [Abstract] | |
Business Restructuring | 16. BUSINESS RESTRUCTURING 2018 Restructuring During the third quarter of 2018, the Company approved a plan to shut down Surfactant operations at its German plant site. As of June 30, 2021, an aggregate of $2,392,000 shut down related expense has been recognized at the site. In the first quarter of 2020, the Company recognized $79,000 of decommissioning expenses at the site. The Company finalized shut down of the plant in 2020 and no more expenses associated with the restructuring are expected. 2016 Restructuring During 2016, the Company shut down its Longford Mills, Ontario, Canada (Longford Mills) manufacturing facility, a part of the Surfactant reportable segment. 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 2021. As of June 30, 2021, $8,812,000 of aggregate restructuring expense has been recognized, reflecting $1,644,000 of termination benefits for approximately 30 employees and $7,168,000 for other expenses, principally site decommissioning costs. The Company recognized $114,000 and $225,000 of decommissioning expenses in the second quarter of 2021 and 2020, respectively. The Company recognized $195,000 and $503,000 of decommissioning expenses in the first six months of 2021 and 2020, respectively. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2021 | |
Business Combinations [Abstract] | |
Acquisitions | 17. ACQUISITIONS 2021 Acquisitions INVISTA Acquisition On January 29, 2021, the Company and its wholly-owned subsidiaries Stepan Holdings Netherlands B.V. and Stepan UK Limited (collectively, “Stepan”) entered into a Stock and Asset Purchase Agreement with Arteva Specialties B.V., INV Performance Surfaces, LLC, INVISTA Textiles (U.K.) Limited, INV Management Services, LLC, and INVISTA Equities, LLC (collectively, “INVISTA”) to acquire INVISTA's aromatic polyester polyol business and associated assets. Included in the transaction were two manufacturing sites, one in Wilmington, North Carolina (U.S.) and the other in Vlissingen, Netherlands, along with intellectual property, customer relationships, inventory and working capital. This acquisition expands the Company’s manufacturing capabilities in both the United States and Europe and enhances its business continuity capabilities for the market. The Company believes that INVISTA’s available spare capacity, combined with debottlenecking opportunities for both plants, will allow Stepan to support future market growth in a capital efficient way. The purchase price was $165,000,000, plus $21,560,000 of working capital and $3,000,000 of associated value-added taxes (VAT) and was paid in cash. Immaterial working capital adjustments were finalized and paid during the second quarter of 2021. The working capital acquired included $5,000,000 of cash. The acquisition has been accounted for as a business combination, and the acquired operations are included in the Company’s Polymer segment in the first six months of 2021. The assets acquired and liabilities assumed as part of the acquisition were measured and recorded at estimated fair value. The purchase price allocation remains preliminary as of June 30, 2021 pending finalization of the fair value of intangibles and property, plant and equipment. The principle valuation techniques employed include cost and market approaches (PP&E), relief from royalty method under the income approach (trade name and technology/know) and multi-period excess earnings method under the income approach (customer relationships). The following table summarizes the preliminary purchase price allocation for the major components of the acquisition: (In thousands) Assets: Property, plant and equipment $ 54,400 Identifiable intangibles assets 45,500 Goodwill 65,100 Total assets acquired $ 165,000 The acquired goodwill includes proprietary and intellectual property, brand recognition, business continuity benefits and marketing, manufacturing and supply chain synergies of the new business with the Company’s existing Polymer business. The acquired goodwill has been assigned to the Polymers segment and is deductible for tax purposes. Identifiable intangible assets included technology and manufacturing know-how ($13,000,000), trademarks ($8,000,000) and customer relationships ($24,500,000). The amortization periods for know-how and trademarks have initially been estimated to be in the range of 7 to 8 years. The amortization period for customer relationships has initially been estimated to be in the range of 12 to 14 years. As of June 30, 2021, in addition to the purchase price, the Company also paid $3,551,000 of acquisition-related expenses that primarily included legal, consulting, valuation and accounting services. For the three and six months ended June 30, 2021, the Company incurred $ 319,000 and $ of acquisition-related expenses , respectively . These costs were included in the Administrative expenses line in the Company’s condensed consolidated statement of income. The following table reflects pro forma financial information prepared under the assumption that the acquisition of the INVISTA aromatic polyester polyol business occurred on January 1, 2020. Pro Forma Financial Information Unaudited Three Months Ended June 30 Six Months Ended June 30 (In thousands) 2021 2020 2021 2020 Net Sales $ 595,511 $ 480,949 $ 1,145,690 $ 956,836 Net Income Attributable to Stepan Company $ 43,520 $ 34,723 $ 86,632 $ 63,325 The supplemental pro forma information is presented for illustrative purposes only and may not be indicative of the consolidated results that would have been achieved by the Company had the acquisition occurred on January 1, 2020. Furthermore, future results may vary significantly from the results reflected in the pro forma information. The pro forma results include adjustments primarily related to amortization of acquired intangible assets, depreciation of the fair value adjustment related to acquired plant assets, tax expense and management assumptions related to INVISTA’s legacy carved-out financial statements. In addition, non-recurring adjustments to pro forma net income include $1,604,000 of acquisition-related expenses. Such expenses were excluded from 2021 pro forma net income and included in 2020 pro forma net income. Fermentation Plant Acquisition On February 2, 2021, the Company acquired a fermentation plant, located in Lake Providence, Louisiana (U.S.). The Company believes this plant complements the rhamnolipid-based bio-surfactant technology the Company acquired from Logos Technologies in March 2020. Fermentation is a new platform technology for the Company and the Company is focusing efforts to further develop, integrate, produce and commercialize these unique surfactants moving forward. Bio-surfactants, produced via fermentation, are attractive due to their biodegradability, low toxicity, and in some cases, unique antimicrobial properties. These bio-surfactants offer synergies in several strategic end use markets including oilfield, agriculture, personal care and household, industrial and institutional. The acquisition of this industrial scale fermentation plant represents the latest step in the Company’s bio-surfactant commercialization efforts. The purchase price was $3,500,000 and was paid in cash. This acquisition has been accounted for as an asset acquisition. 2020 Acquisitions Clariant (Mexico) Acquisition On September 17, 2020, the Company, through its subsidiaries in Mexico, acquired Clariant (Mexico) S.A. de C.V.’s (Clariant) anionic business located in Santa Clara, Mexico. The acquisition did not include the purchase of a manufacturing site. The business acquired was integrated into the Company’s two existing manufacturing sites in Mexico (Matamoros and Ecatepec). The purchase price of the acquisition was $14,000,000, plus associated value-added taxes (VAT). As of June 30, 2021, $13,519,000, inclusive of $308,000 net VAT, had been paid with cash on hand. The acquisition was accounted for as a business combination and the assets were measured and recorded at their estimated fair value. The acquired goodwill is not tax deductible. All assets acquired are included in the Company’s Surfactants segment. The following table summarizes the purchase price allocation for the acquisition: (In thousands) Assets: Identifiable intangible assets: Customer lists $ 8,000 Trademarks and know-how 1,300 Non-compete agreement 300 Goodwill 4,225 Property, plant and equipment 175 Total assets acquired $ 14,000 Logos Technologies Acquisition On March 13, 2020, the Company acquired certain assets of Logos Technologies LLC's NatSurFact® business, a rhamnolipid-based line of bio-surfactants derived from renewable sources. These bio-surfactants offer synergies in several strategic end use markets including oilfield, agriculture, personal care and household, industrial and institutional. The acquisition was accounted for as an asset acquisition. The purchase price of the acquisition was $2,040,000 and was paid with cash on hand. All assets acquired are included in the Company’s Surfactants segment. The assets acquired were primarily intangibles, including trademarks and know-how ($1,392,000) and patents ($464,000). Additionally, $184,000 of laboratory equipment was acquired. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent Accounting Pronouncements | 18. RECENT ACCOUNTING PRONOUNCEMENTS In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) Facilitation of the Effect of Reference Rate Reform on Financial Reporting. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent Accounting Pronouncements | In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) Facilitation of the Effect of Reference Rate Reform on Financial Reporting. |
Reconciliations of Equity (Tabl
Reconciliations of Equity (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Reconciliations of Total Equity | Below are reconciliations of total equity, Company equity and equity attributable to noncontrolling interests for the three and six months ended June 30, 2021 and 2020: (In thousands, except share and per share amounts) Total Common Stock Additional Paid-in Capital Common Treasury Stock Accumulated Other Comprehensive Income (Loss) Retained Earnings Noncontrolling Interest (1) Balance at March 31, 2021 1,003,946 26,726 209,471 (137,052 ) (154,442 ) 1,057,579 1,664 Issuance of 10,779 shares of common stock under stock option plan 706 11 695 — — — — Purchase of 73,745 shares of common stock (9,906 ) — — (9,906 ) — — — Stock-based and deferred compensation 3,282 15 3,803 (536 ) — — — Net income 43,303 — — — — 43,278 25 Other comprehensive income 16,048 — — — 16,022 — 26 Cash dividends paid: Common stock ($0.305 per share) (6,863 ) — — — — (6,863 ) — Balance at June 30, 2021 $ 1,050,516 $ 26,752 $ 213,969 $ (147,494 ) $ (138,420 ) $ 1,093,994 $ 1,715 (In thousands, except share and per share amounts) Total Common Stock Additional Paid-in Capital Common Treasury Stock Accumulated Other Comprehensive Income (Loss) Retained Earnings Noncontrolling Interest (1) Balance at December 31, 2020 $ 988,365 $ 26,658 $ 206,716 $ (133,629 ) $ (136,881 ) $ 1,023,829 $ 1,672 Issuance of 16,565 shares of common stock under stock option plan 1,087 17 1,070 — — — — Purchase of 82,045 shares of common stock (10,895 ) — — (10,895 ) — — — Stock-based and deferred compensation 3,290 77 6,183 (2,970 ) — — — Net income 83,914 — — — — 83,889 25 Other comprehensive income (1,521 ) — — — (1,539 ) — 18 Cash dividends paid: Common stock ($0.610 per share) (13,724 ) — — — — (13,724 ) — Balance at June 30, 2021 $ 1,050,516 $ 26,752 $ 213,969 $ (147,494 ) $ (138,420 ) $ 1,093,994 $ 1,715 (In thousands, except share and per share amounts) Total Common Stock Additional Paid-in Capital Common Treasury Stock Accumulated Other Comprehensive Income (Loss) Retained Earnings Noncontrolling Interest (1) Balance at March 31, 2020 867,472 26,541 195,661 (122,685 ) (176,546 ) 943,807 694 Issuance of 3,933 shares of common stock under stock option plan 237 4 233 — — — — Purchase of 71,555 shares of common stock (6,510 ) — — (6,510 ) — — — Stock-based and deferred compensation 3,043 7 3,053 (17 ) — — — Net income 35,843 — — — — 35,707 136 Other comprehensive income 4,345 — — — 4,343 — 2 Cash dividends paid: Common stock ($0.275 per share) (6,169 ) — — — — (6,169 ) — Balance at June 30, 2020 $ 898,261 $ 26,552 $ 198,947 $ (129,212 ) $ (172,203 ) $ 973,345 $ 832 (In thousands, except share and per share amounts) Total Common Stock Additional Paid-in Capital Common Treasury Stock Accumulated Other Comprehensive Income (Loss) Retained Earnings Noncontrolling Interest (1) Balance, December 31, 2019 $ 892,496 $ 26,493 $ 193,135 $ (114,139 ) $ (136,170 ) $ 922,464 $ 713 Issuance of 6,680 shares of common stock under stock option plan 392 7 385 — — — — Purchase of 160,780 shares of common stock (13,753 ) — — (13,753 ) — — — Stock-based and deferred compensation 4,159 52 5,427 (1,320 ) — — — Net income 63,382 — — — — 63,252 130 Other comprehensive income (36,044 ) — — — (36,033 ) — (11 ) Cash dividends paid: Common stock ($0.550 per share) (12,371 ) — — — — (12,371 ) — Balance at June 30, 2020 $ 898,261 $ 26,552 $ 198,947 $ (129,212 ) $ (172,203 ) $ 973,345 $ 832 (1) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Values and Related Carrying Values of Debt | At June 30, 2021, and December 31, 2020, 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 $614,000 and $617,000 as of June 30, 2021 and December 31, 2020, respectively): (In thousands) June 30, 2021 December 31, 2020 Fair value $ 248,832 $ 210,370 Carrying value 239,495 199,286 |
Financial Assets and Liabilities, Excluding Cash and Cash Equivalents, Measured on a Recurring Basis at Fair Value | The following tables present financial assets and liabilities, excluding cash and cash equivalents, measured on a recurring basis at fair value as of June 30, 2021, and December 31, 2020, and the level within the fair value hierarchy in which the fair value measurements fall: (In thousands) June 30, 2021 Level 1 Level 2 Level 3 Mutual fund assets $ 32,576 $ 32,576 $ — $ — Derivative assets: Foreign currency contracts 256 — 256 — Total assets at fair value $ 32,832 $ 32,576 $ 256 $ — Derivative liabilities: Foreign currency contracts $ 2 $ — $ 2 $ — (In thousands) December 31, 2020 Level 1 Level 2 Level 3 Mutual fund assets $ 30,652 $ 30,652 $ — $ — Derivative assets: Foreign currency contracts 335 — 335 — Total assets at fair value $ 30,987 $ 30,652 $ 335 $ — Derivative liabilities: Foreign currency contracts $ 566 $ — $ 566 $ — |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30 Six Months Ended June 30 2021 2020 2021 2020 $ 2,807 $ 2,989 $ 5,346 $ 4,191 |
Unrecognized Compensation Costs for Stock Options, Stock Awards and SARs | Unrecognized compensation costs for stock options, stock awards and SARs were as follows: (In thousands) June 30, 2021 December 31, 2020 Stock options $ 3,255 $ 1,993 Stock awards 7,995 5,313 SARs 7,055 4,341 |
Share Based Payment Awards Granted in Period | The increases in unrecognized compensation costs for stock options, stock awards and SARs reflected the 2021 grants of: Shares Stock options 66,134 Stock awards (at target) 41,228 SARs 142,451 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Composition of Inventories | The composition of inventories at June 30, 2021, and December 31, 2020, was as follows: (In thousands) June 30, 2021 December 31, 2020 Finished goods $ 160,467 $ 148,878 Raw materials 105,621 69,905 Total inventories $ 266,088 $ 218,783 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Schedule of Lease Cost Recognized in Both Cost of Sale and Operating Expenses | Lease cost is recognized in both the Cost of Sales and Operating Expenses sections of the Condensed Consolidated Statements of Income (In thousands) Three months ended June 30, 2021 Six months ended June 30, 2021 Lease Cost Operating lease cost $ 3,844 $ 7,570 Short-term lease cost 1,284 2,553 Variable lease cost 222 505 Total lease cost $ 5,350 $ 10,628 Other Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow from operating leases $ 3,688 $ 6,977 Right-of-use assets obtained in exchange for operating lease liabilities 1,003 13,630 |
Schedule of Maturities of Lease Liabilities | The following table outlines maturities of lease liabilities as of June 30, 2021: (In thousands) Undiscounted Cash Flows: 2021 (excluding the six months ended June 30, 2021) $ 7,432 2022 13,516 2023 11,119 2024 7,032 2025 5,336 Subsequent to 2025 39,610 Total Undiscounted Cash Flows $ 84,045 Less: Imputed interest (13,301 ) Present value $ 70,744 Current operating lease liabilities (1) 12,564 Non-current operating lease liabilities 58,180 Total lease liabilities $ 70,744 (1) This item is included in the Accrued liabilities line on the Company’s Condensed Consolidated Balance Sheet. |
Schedule of Operating Leases Weighted Average, Remaining Lease Term and Discount Rate | Weighted-average remaining lease term-operating leases 10 Years Weighted-average discount rate-operating leases 3.0% |
Postretirement Benefit Plans (T
Postretirement Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Compensation And Retirement Disclosure [Abstract] | |
Components of Net Periodic Benefit Cost | Components of Net Periodic Benefit Cost UNITED STATES (In thousands) Three Months Ended June 30 Six Months Ended June 30 2021 2020 2021 2020 Interest cost $ 1,177 $ 1,421 $ 2,354 $ 2,842 Expected return on plan assets (2,586 ) (2,437 ) (5,171 ) (4,874 ) Amortization of net actuarial loss 1,144 1,052 2,288 2,104 Net periodic benefit cost (income) $ (265 ) $ 36 $ (529 ) $ 72 UNITED KINGDOM (In thousands) Three Months Ended June 30 Six Months Ended June 30 2021 2020 2021 2020 Interest cost $ 91 $ 107 $ 179 $ 216 Expected return on plan assets (81 ) (133 ) (162 ) (267 ) Amortization of net actuarial loss 18 19 35 38 Net periodic benefit cost (income) $ 28 $ (7 ) $ 52 $ (13 ) |
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 June 30 Six Months Ended June 30 2021 2020 2021 2020 Retirement savings contributions $ 1,978 $ 1,950 $ 4,017 $ 3,708 Profit sharing contributions plan 1,865 1,483 3,731 2,458 Total defined contribution plan expenses $ 3,843 $ 3,433 $ 7,748 $ 6,166 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Computations of Basic and Diluted Earnings Per Share | Below are the computations of basic and diluted earnings per share for the three and six months ended June 30, 2021 and 2020: (In thousands, except per share amounts) Three Months Ended June 30 Six Months Ended June 30 2021 2020 2021 2020 Computation of Basic Earnings per Share Net income attributable to Stepan Company $ 43,278 $ 35,707 $ 83,889 $ 63,252 Weighted-average number of common shares outstanding 22,952 22,923 22,963 22,973 Basic earnings per share $ 1.89 $ 1.56 $ 3.65 $ 2.75 Computation of Diluted Earnings per Share Net income attributable to Stepan Company $ 43,278 $ 35,707 $ 83,889 $ 63,252 Weighted-average number of shares outstanding 22,952 22,923 22,963 22,973 Add weighted-average net shares from assumed exercise of options (under treasury stock method) (1) 152 100 146 101 Add weighted-average net shares related to unvested stock awards (under treasury stock method) 1 1 1 1 Add weighted-average net shares from assumed exercise of SARs (under treasury stock method) (1) 190 125 181 127 Add weighted-average contingently issuable net shares related to performance stock awards (under treasury stock method) 50 35 47 33 Weighted-average shares applicable to diluted earnings 23,345 23,184 23,338 23,235 Diluted earnings per share $ 1.85 $ 1.54 3.59 $ 2.72 (1) No |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Summary of Changes in Accumulated Other Comprehensive Income | Below is the change in the Company’s AOCI balance by component (net of income taxes) for the three and six months ended June 30, 2021 and 2020: (In thousands) Foreign Currency Translation Adjustments Defined Benefit Pension Plan Adjustments Cash Flow Hedge Adjustments Total Balance at March 31, 2020 $ (145,219 ) $ (31,397 ) $ 70 $ (176,546 ) Other comprehensive income before reclassifications 3,537 — — 3,537 Amounts reclassified from AOCI — 808 (2 ) 806 Net current-period other comprehensive income 3,537 808 (2 ) 4,343 Balance at June 30, 2020 $ (141,682 ) $ (30,589 ) $ 68 $ (172,203 ) Balance at March 31, 2021 $ (125,516 ) $ (28,987 ) $ 61 $ (154,442 ) Other comprehensive income before reclassifications 15,149 — — 15,149 Amounts reclassified from AOCI — 876 (3 ) 873 Net current-period other comprehensive income 15,149 876 (3 ) 16,022 Balance at June 30, 2021 $ (110,367 ) $ (28,111 ) $ 58 $ (138,420 ) Balance at December 31, 2019 $ (104,037 ) $ (32,205 ) $ 72 $ (136,170 ) Other comprehensive income before reclassifications (37,645 ) — — (37,645 ) Amounts reclassified from AOCI — 1,616 (4 ) 1,612 Net current-period other comprehensive income (37,645 ) 1,616 (4 ) (36,033 ) Balance at June 30, 2020 $ (141,682 ) $ (30,589 ) $ 68 $ (172,203 ) Balance at December 31, 2020 $ (107,083 ) $ (29,861 ) $ 63 $ (136,881 ) Other comprehensive income before reclassifications (3,284 ) — — (3,284 ) Amounts reclassified from AOCI — 1,750 (5 ) 1,745 Net current-period other comprehensive income (3,284 ) 1,750 (5 ) (1,539 ) Balance at June 30, 2021 $ (110,367 ) $ (28,111 ) $ 58 $ (138,420 ) |
Summary of Amounts Reclassifications Out of Accumulated Other Comprehensive Income | Information regarding the reclassifications out of AOCI for the three- and six-month periods ended June 30, 2021 and 2020, is displayed below: (In thousands) Amount Reclassified from AOCI (1) AOCI Components Three Months Ended June 30 Six Months Ended June 30 Affected Line Item in Consolidated Statements of Income 2021 2020 2021 2020 Amortization of defined benefit pension actuarial losses $ (1,162 ) $ (1,071 ) $ (2,323 ) $ (2,142 ) (2) 286 263 573 526 Tax benefit $ (876 ) $ (808 ) $ (1,750 ) $ (1,616 ) Net of tax Gains and losses on cash flow hedges: Foreign exchange contracts 3 2 5 4 Cost of sales 3 2 5 4 Total before tax — — — — Tax benefit $ 3 $ 2 $ 5 $ 4 Net of tax Total reclassifications for the period $ (873 ) $ (806 ) $ (1,745 ) $ (1,612 ) Net of tax ( 1 ) Amounts in parentheses denote expense to statement of income. ( 2 ) This component of accumulated other comprehensive income is included in the computation of net periodic benefit cost. See Note 9, Postretirement Benefit Plans , of the notes to the Company’s condensed consolidated financial statements (included in Item 1 of this Form 10-Q) for additional details. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Operating Segment | The Company has three reportable segments: Surfactants, Polymers and Specialty Products. Net sales by segment for the three and six months ended June 30, 2021 and 2020, were as follows: (In thousands) Three Months Ended June 30 Six Months Ended June 30 2021 2020 2021 2020 Segment Net Sales Surfactants $ 384,002 $ 332,335 $ 754,938 $ 659,406 Polymers 190,538 112,409 340,923 218,900 Specialty Products 20,971 15,805 37,390 32,230 Total $ 595,511 $ 460,549 $ 1,133,251 $ 910,536 |
Reconciliation of Segment Information to Income Before Provision for Income Taxes | Segment operating income and reconciliations of segment operating income to income before provision for income taxes for the three and six months ended June 30, 2021 and 2020, are summarized below: (In thousands) Three Months Ended June 30 Six Months Ended June 30 2021 2020 2021 2020 Segment Operating Income Surfactants $ 45,896 $ 48,503 $ 99,106 $ 84,659 Polymers 23,025 15,527 40,976 23,043 Specialty Products 6,977 3,226 9,610 7,210 Segment operating income 75,898 67,256 149,692 114,912 Business restructuring (114 ) (225 ) (195 ) (582 ) Unallocated corporate expenses (1) (19,127 ) (22,408 ) (38,926 ) (29,703 ) Consolidated operating income 56,657 44,623 110,571 84,627 Other Income (Expense) Interest, net (1,567 ) (1,259 ) (3,091 ) (2,489 ) Other, net 2,758 4,437 3,504 1,175 Income before provision for income taxes $ 57,848 $ 47,801 $ 110,984 $ 83,313 (1) Unallocated corporate expenses primarily comprise corporate administrative expenses (e.g., corporate finance, legal, human resources, information systems, deferred compensation and environmental remediation) that are not included in segment operating income and not used to evaluate segment performance. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Geographic Disaggregation of Net Sales | The tables below provide a geographic disaggregation of net sales for the three and six months ended June 30, 2021 and 2020. 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 June 30, 2021 (In thousands) Surfactants Polymers Specialty Products Total Geographic Market North America $ 221,645 $ 95,591 $ 17,818 $ 335,054 Europe 65,339 82,453 2,436 150,228 Latin America 79,968 986 717 81,671 Asia 17,050 11,508 — 28,558 Total $ 384,002 $ 190,538 $ 20,971 $ 595,511 For the Three Months Ended June 30, 2020 (In thousands) Surfactants Polymers Specialty Products Total Geographic Market North America $ 207,571 $ 68,780 $ 13,329 $ 289,680 Europe 55,812 32,692 2,476 90,980 Latin America 56,194 463 — 56,657 Asia 12,758 10,474 — 23,232 Total $ 332,335 $ 112,409 $ 15,805 $ 460,549 For the Six Months Ended June 30, 2021 (In thousands) Surfactants Polymers Specialty Products Total Geographic Market North America $ 442,580 $ 166,469 $ 31,755 $ 640,804 Europe 136,433 150,753 4,918 292,104 Latin America 140,137 1,976 717 142,830 Asia 35,788 21,725 — 57,513 Total $ 754,938 $ 340,923 $ 37,390 $ 1,133,251 For the Six Months Ended June 30, 2020 (In thousands) Surfactants Polymers Specialty Products Total Geographic Market North America $ 415,517 $ 130,621 $ 26,823 $ 572,961 Europe 115,472 69,252 5,407 190,131 Latin America 102,704 1,102 — 103,806 Asia 25,713 17,925 — 43,638 Total $ 659,406 $ 218,900 $ 32,230 $ 910,536 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | At June 30, 2021, and December 31, 2020, debt was comprised of the following: (In thousands) Maturity Dates June 30, 2021 December 31, 2020 Unsecured private placement notes 3.95% (net of unamortized debt issuance cost of $251 and $273 for 2021 and 2020, respectively) 2021-2027 $ 99,749 $ 99,727 3.86% (net of unamortized debt issuance cost of $208 and $236 for 2021 and 2020, respectively) 2021-2025 56,935 71,193 4.86% (net of unamortized debt issuance cost of $89 and $108 for 2021 and 2020, respectively) 2021-2023 27,768 27,749 2.30% (net of unamortized debt issuance cost of $66 and $0 for 2021 and 2020, respectively) 2024-2028 49,934 — Debt of foreign subsidiaries Unsecured bank debt, foreign currency 2021 4,495 — Total debt $ 238,881 $ 198,669 Less current maturities 42,352 37,857 Long-term debt $ 196,529 $ 160,812 |
Other, Net (Tables)
Other, Net (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Other Income And Expenses [Abstract] | |
Other Net in Consolidated Statements of Income | Other, net in the consolidated statements of income included the following: (In thousands) Three Months Ended June 30 Six Months Ended June 30 2021 2020 2021 2020 Foreign exchange (losses) gains $ 106 $ 423 $ (229 ) $ 991 Investment income 189 93 495 168 Realized and unrealized gains on investments 2,227 3,950 2,761 75 Net periodic pension benefit cost 236 (29 ) 477 (59 ) Other, net $ 2,758 $ 4,437 $ 3,504 $ 1,175 |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
2021 Acquisitions [Member] | |
Business Acquisition [Line Items] | |
Summary of Purchase Price Allocation for Major Components of Acquisition | The following table summarizes the preliminary purchase price allocation for the major components of the acquisition: (In thousands) Assets: Property, plant and equipment $ 54,400 Identifiable intangibles assets 45,500 Goodwill 65,100 Total assets acquired $ 165,000 |
Summary of Pro forma Financial Information | The following table reflects pro forma financial information prepared under the assumption that the acquisition of the INVISTA aromatic polyester polyol business occurred on January 1, 2020. Pro Forma Financial Information Unaudited Three Months Ended June 30 Six Months Ended June 30 (In thousands) 2021 2020 2021 2020 Net Sales $ 595,511 $ 480,949 $ 1,145,690 $ 956,836 Net Income Attributable to Stepan Company $ 43,520 $ 34,723 $ 86,632 $ 63,325 |
2020 Acquisitions [Member] | |
Business Acquisition [Line Items] | |
Summary of Purchase Price Allocation for Major Components of Acquisition | The following table summarizes the purchase price allocation for the acquisition: (In thousands) Assets: Identifiable intangible assets: Customer lists $ 8,000 Trademarks and know-how 1,300 Non-compete agreement 300 Goodwill 4,225 Property, plant and equipment 175 Total assets acquired $ 14,000 |
Reconciliations of Equity - Rec
Reconciliations of Equity - Reconciliations of Total Equity (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Reconciliations of total equity | |||||
Beginning Balance | $ 1,003,946 | $ 867,472 | $ 988,365 | $ 892,496 | |
Issuance of common stock under stock option plan | 706 | 237 | 1,087 | 392 | |
Purchase of common stock | (9,906) | (6,510) | (10,895) | (13,753) | |
Stock-based and deferred compensation | 3,282 | 3,043 | 3,290 | 4,159 | |
Net income | 43,303 | 35,843 | 83,914 | 63,382 | |
Other comprehensive income | 16,048 | 4,345 | (1,521) | (36,044) | |
Cash dividends paid: | |||||
Common stock | (6,863) | (6,169) | (13,724) | (12,371) | |
Ending Balance | 1,050,516 | 898,261 | 1,050,516 | 898,261 | |
Common Stock [Member] | |||||
Reconciliations of total equity | |||||
Beginning Balance | 26,726 | 26,541 | 26,658 | 26,493 | |
Issuance of common stock under stock option plan | 11 | 4 | 17 | 7 | |
Stock-based and deferred compensation | 15 | 7 | 77 | 52 | |
Cash dividends paid: | |||||
Ending Balance | 26,752 | 26,552 | 26,752 | 26,552 | |
Additional Paid-in Capital [Member] | |||||
Reconciliations of total equity | |||||
Beginning Balance | 209,471 | 195,661 | 206,716 | 193,135 | |
Issuance of common stock under stock option plan | 695 | 233 | 1,070 | 385 | |
Stock-based and deferred compensation | 3,803 | 3,053 | 6,183 | 5,427 | |
Cash dividends paid: | |||||
Ending Balance | 213,969 | 198,947 | 213,969 | 198,947 | |
Common Treasury Stock [Member] | |||||
Reconciliations of total equity | |||||
Beginning Balance | (137,052) | (122,685) | (133,629) | (114,139) | |
Purchase of common stock | (9,906) | (6,510) | (10,895) | (13,753) | |
Stock-based and deferred compensation | (536) | (17) | (2,970) | (1,320) | |
Cash dividends paid: | |||||
Ending Balance | (147,494) | (129,212) | (147,494) | (129,212) | |
Accumulated Other Comprehensive Income (Loss) [Member] | |||||
Reconciliations of total equity | |||||
Beginning Balance | (154,442) | (176,546) | (136,881) | (136,170) | |
Other comprehensive income | 16,022 | 4,343 | (1,539) | (36,033) | |
Cash dividends paid: | |||||
Ending Balance | (138,420) | (172,203) | (138,420) | (172,203) | |
Retained Earnings [Member] | |||||
Reconciliations of total equity | |||||
Beginning Balance | 1,057,579 | 943,807 | 1,023,829 | 922,464 | |
Net income | 43,278 | 35,707 | 83,889 | 63,252 | |
Cash dividends paid: | |||||
Common stock | (6,863) | (6,169) | (13,724) | (12,371) | |
Ending Balance | 1,093,994 | 973,345 | 1,093,994 | 973,345 | |
Noncontrolling Interest [Member] | |||||
Reconciliations of total equity | |||||
Beginning Balance | [1] | 1,664 | 694 | 1,672 | 713 |
Net income | [1] | 25 | 136 | 25 | 130 |
Other comprehensive income | [1] | 26 | 2 | 18 | (11) |
Cash dividends paid: | |||||
Ending Balance | [1] | $ 1,715 | $ 832 | $ 1,715 | $ 832 |
[1] | 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 | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Number of shares of common stock issued under stock option plan | 10,779 | 3,933 | 16,565 | 6,680 |
Number of common stock shares purchased | 73,745 | 71,555 | 82,045 | 160,780 |
Common stock | $ 0.305 | $ 0.275 | $ 0.610 | $ 0.550 |
Common Stock [Member] | ||||
Number of shares of common stock issued under stock option plan | 10,779 | 3,933 | 16,565 | 6,680 |
Additional Paid-in Capital [Member] | ||||
Number of shares of common stock issued under stock option plan | 10,779 | 3,933 | 16,565 | 6,680 |
Common Treasury Stock [Member] | ||||
Number of common stock shares purchased | 73,745 | 71,555 | 82,045 | 160,780 |
Retained Earnings [Member] | ||||
Common stock | $ 0.305 | $ 0.275 | $ 0.610 | $ 0.550 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value Disclosures [Abstract] | ||
Unamortized debt issuance cost | $ 614,000 | $ 617,000 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Values and Related Carrying Values of Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Carrying value | $ 239,495 | $ 199,286 |
Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value | $ 248,832 | $ 210,370 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities, Excluding Cash and Cash Equivalents, Measured on a Recurring Basis at Fair Value (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Mutual fund assets | $ 32,576 | $ 30,652 |
Derivative assets: | ||
Foreign currency contracts | 256 | 335 |
Total assets at fair value | 32,832 | 30,987 |
Derivative liabilities: | ||
Foreign currency contracts | 2 | 566 |
Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Mutual fund assets | 32,576 | 30,652 |
Derivative assets: | ||
Total assets at fair value | 32,576 | 30,652 |
Level 2 [Member] | ||
Derivative assets: | ||
Foreign currency contracts | 256 | 335 |
Total assets at fair value | 256 | 335 |
Derivative liabilities: | ||
Foreign currency contracts | $ 2 | $ 566 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative notional amount | $ 45,745,000 | $ 48,336,000 |
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) | 6 Months Ended |
Jun. 30, 2021 | |
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 |
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 |
SARs [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Weighted average period for amortization of unrecognized compensation cost | 2 years |
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 | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Compensation expense | $ 2,807 | $ 2,989 | $ 5,346 | $ 4,191 |
Stock-based Compensation - Unre
Stock-based Compensation - Unrecognized Compensation Costs for Stock Options, Stock Awards and SARs (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Stock Option [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Unrecognized compensation costs for stock options, stock awards and SARs | $ 3,255 | $ 1,993 |
Stock Awards [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Unrecognized compensation costs for stock options, stock awards and SARs | 7,995 | 5,313 |
SARs [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Unrecognized compensation costs for stock options, stock awards and SARs | $ 7,055 | $ 4,341 |
Stock-based Compensation - Shar
Stock-based Compensation - Share Based Payment Awards Granted in Period (Detail) | 6 Months Ended |
Jun. 30, 2021shares | |
Stock Option [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Stock options granted in period | 66,134 |
Stock Awards (at target) [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Awards granted in period | 41,228 |
SARs [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Awards granted in period | 142,451 |
Inventories - Composition of In
Inventories - Composition of Inventories (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 160,467 | $ 148,878 |
Raw materials | 105,621 | 69,905 |
Total inventories | $ 266,088 | $ 218,783 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($)Country | |
Operating Leased Assets [Line Items] | |
Operating lease, liability | $ 70,744 |
Number of countries leases reside | Country | 5 |
Percentage of value of leases reside | 98.00% |
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 | 23.00% |
Operating lease, liability | $ 3,154,000 |
Lessee, operating lease, lease not yet commenced, description | As of June 30, 2021, the Company had railcar leases, valued at approximately $3,154,000, that had not commenced. These leases will commence in the third quarter of 2021 and the first quarter of 2022. |
Real Estate [Member] | |
Operating Leased Assets [Line Items] | |
Percentage of lease asset categories | 63.00% |
Real Estate [Member] | Minimum [Member] | |
Operating Leased Assets [Line Items] | |
Lessee, operating lease, term of contract | 1 year |
Real Estate [Member] | Maximum [Member] | |
Operating Leased Assets [Line Items] | |
Lessee, operating lease, term of contract | 50 years |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Cost Recognized in Both Cost of Sale and Operating Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Lease Cost | ||
Operating lease cost | $ 3,844 | $ 7,570 |
Short-term lease cost | 1,284 | 2,553 |
Variable lease cost | 222 | 505 |
Total lease cost | 5,350 | 10,628 |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flow from operating leases | 3,688 | 6,977 |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 1,003 | $ 13,630 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
2021 (excluding the six months ended June 30, 2021) | $ 7,432 | |
2022 | 13,516 | |
2023 | 11,119 | |
2024 | 7,032 | |
2025 | 5,336 | |
Subsequent to 2025 | 39,610 | |
Total Undiscounted Cash Flows | 84,045 | |
Less: Imputed interest | (13,301) | |
Present value | 70,744 | |
Current operating lease liabilities | 12,564 | |
Non-current operating lease liabilities | 58,180 | $ 51,567 |
Total lease liabilities | $ 70,744 |
Leases - Schedule of Operating
Leases - Schedule of Operating Leases Weighted Average, Remaining Lease Term and Discount Rate (Detail) | Jun. 30, 2021 |
Leases [Abstract] | |
Weighted-average remaining lease term-operating leases | 10 years |
Weighted-average discount rate-operating leases | 3.00% |
Contingencies - Additional Info
Contingencies - Additional Information (Detail) - USD ($) | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Site Contingency [Line Items] | |||
Environmental losses accrual | $ 22,459,000 | $ 22,884,000 | |
Cash expenditures related to legal matters and environmental matters | $ 1,267,000 | $ 3,075,000 | |
Contribution for future response costs | 5.00% | ||
Wilmington Site [Member] | |||
Site Contingency [Line Items] | |||
Payment of environmental response costs | $ 3,105,000 | ||
Minimum [Member] | |||
Site Contingency [Line Items] | |||
Environmental losses and legal losses | 22,459,000 | ||
Maximum [Member] | |||
Site Contingency [Line Items] | |||
Environmental losses and legal losses | $ 40,890,000 |
Postretirement Benefit Plans -
Postretirement Benefit Plans - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic benefit cost (income) | $ (236) | $ 29 | $ (477) | $ 59 |
United States [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 1,177 | 1,421 | 2,354 | 2,842 |
Expected return on plan assets | (2,586) | (2,437) | (5,171) | (4,874) |
Amortization of net actuarial loss | 1,144 | 1,052 | 2,288 | 2,104 |
Net periodic benefit cost (income) | (265) | 36 | (529) | 72 |
United Kingdom [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 91 | 107 | 179 | 216 |
Expected return on plan assets | (81) | (133) | (162) | (267) |
Amortization of net actuarial loss | 18 | 19 | 35 | 38 |
Net periodic benefit cost (income) | $ 28 | $ (7) | $ 52 | $ (13) |
Postretirement Benefit Plans _2
Postretirement Benefit Plans - Defined Benefit Pension Plans - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Defined Contribution Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Balance of trust assets | $ 2,111,000 |
United States [Member] | Unfunded Plan [Member] | Non-qualified Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected contributions or payments to defined benefit plans | 274,000 |
Employer contributions or payments | 171,000 |
U.K Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected contributions or payments to defined benefit plans | 495,000 |
Employer contributions or payments | $ 272,000 |
Postretirement Benefit Plans _3
Postretirement Benefit Plans - Defined Contribution Plan Expenses for Company's Qualified Contribution Plans (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Defined Contribution Plan Disclosure [Line Items] | ||||
Total defined contribution plan expenses | $ 3,843 | $ 3,433 | $ 7,748 | $ 6,166 |
Retirement Savings Contributions [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Total defined contribution plan expenses | 1,978 | 1,950 | 4,017 | 3,708 |
Profit Sharing Contributions Plan [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Total defined contribution plan expenses | $ 1,865 | $ 1,483 | $ 3,731 | $ 2,458 |
Earnings Per Share - Computatio
Earnings Per Share - Computations of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Computation of Basic Earnings per Share | |||||
Net income attributable to Stepan Company | $ 43,278 | $ 35,707 | $ 83,889 | $ 63,252 | |
Weighted-average number of common shares outstanding | 22,952 | 22,923 | 22,963 | 22,973 | |
Basic earnings per share | $ 1.89 | $ 1.56 | $ 3.65 | $ 2.75 | |
Computation of Diluted Earnings per Share | |||||
Net income attributable to Stepan Company | $ 43,278 | $ 35,707 | $ 83,889 | $ 63,252 | |
Weighted-average number of common shares outstanding | 22,952 | 22,923 | 22,963 | 22,973 | |
Add weighted-average net shares related to unvested stock awards (under treasury stock method) | 1 | 1 | 1 | 1 | |
Weighted-average shares applicable to diluted earnings | 23,345 | 23,184 | 23,338 | 23,235 | |
Diluted earnings per share | $ 1.85 | $ 1.54 | $ 3.59 | $ 2.72 | |
Stock Option [Member] | |||||
Computation of Diluted Earnings per Share | |||||
Add weighted-average net shares from assumed exercise of options (under treasury stock method) | [1] | 152 | 100 | 146 | 101 |
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) | [1] | 190 | 125 | 181 | 127 |
Performance Stock Award [Member] | |||||
Computation of Diluted Earnings per Share | |||||
Add weighted-average net shares from assumed exercise of options (under treasury stock method) | 50 | 35 | 47 | 33 | |
[1] | No |
Earnings Per Share - Computat_2
Earnings Per Share - Computations of Basic and Diluted Earnings Per Share (Parenthetical) (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Options and Stock Appreciation Rights (SARs) [Member] | ||||
Earnings Per Share Basic [Line Items] | ||||
Options/SARs to purchase shares of common stock were excluded from the computations of diluted earnings per share | 0 | 253,448 | 0 | 254,868 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Summary of Changes in Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | $ 986,693 | |||
Other comprehensive income before reclassifications | $ 15,149 | $ 3,537 | (3,284) | $ (37,645) |
Amounts reclassified from AOCI | 873 | 806 | 1,745 | 1,612 |
Net current-period other comprehensive income | 16,022 | 4,343 | (1,539) | (36,033) |
Ending Balance | 1,048,801 | 1,048,801 | ||
Foreign Currency Translation Adjustments [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | (125,516) | (145,219) | (107,083) | (104,037) |
Other comprehensive income before reclassifications | 15,149 | 3,537 | (3,284) | (37,645) |
Net current-period other comprehensive income | 15,149 | 3,537 | (3,284) | (37,645) |
Ending Balance | (110,367) | (141,682) | (110,367) | (141,682) |
Defined Benefit Pension Plan Adjustments [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | (28,987) | (31,397) | (29,861) | (32,205) |
Amounts reclassified from AOCI | 876 | 808 | 1,750 | 1,616 |
Net current-period other comprehensive income | 876 | 808 | 1,750 | 1,616 |
Ending Balance | (28,111) | (30,589) | (28,111) | (30,589) |
Cash Flow Hedge Adjustments [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | 61 | 70 | 63 | 72 |
Amounts reclassified from AOCI | (3) | (2) | (5) | (4) |
Net current-period other comprehensive income | (3) | (2) | (5) | (4) |
Ending Balance | 58 | 68 | 58 | 68 |
AOCI Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | (154,442) | (176,546) | (136,881) | (136,170) |
Ending Balance | $ (138,420) | $ (172,203) | $ (138,420) | $ (172,203) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Summary of Amounts Reclassifications Out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Income Before Provision for Income Taxes | $ 57,848 | $ 47,801 | $ 110,984 | $ 83,313 | |
Tax benefit | (14,545) | (11,958) | (27,070) | (19,931) | |
Cost of Sales | 483,830 | 362,054 | 912,590 | 732,772 | |
Defined Benefit Pension Plan Adjustments [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member] | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Amortization of defined benefit pension actuarial losses | [1],[2] | (1,162) | (1,071) | (2,323) | (2,142) |
Tax benefit | [2] | 286 | 263 | 573 | 526 |
Income applicable to common stock | [2] | (876) | (808) | (1,750) | (1,616) |
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 | [2] | 3 | 2 | 5 | 4 |
Income applicable to common stock | [2] | 3 | 2 | 5 | 4 |
Cash Flow Hedge Adjustments [Member] | Foreign exchange contracts [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member] | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Cost of Sales | [2] | 3 | 2 | 5 | 4 |
Accumulated Other Comprehensive Income (Loss) [Member] | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Income applicable to common stock | [2] | $ (873) | $ (806) | $ (1,745) | $ (1,612) |
[1] | This component of accumulated other comprehensive income is included in the computation of net periodic benefit cost. See Note 9, Postretirement Benefit Plans , of the notes to the Company’s condensed consolidated financial statements (included in Item 1 of this Form 10-Q) for additional details. | ||||
[2] | Amounts in parentheses denote expense to statement of income. |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2021Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Reporting - Operating S
Segment Reporting - Operating Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 595,511 | $ 460,549 | $ 1,133,251 | $ 910,536 |
Surfactants [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 384,002 | 332,335 | 754,938 | 659,406 |
Polymers [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 190,538 | 112,409 | 340,923 | 218,900 |
Specialty Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 20,971 | $ 15,805 | $ 37,390 | $ 32,230 |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation of Segment Information to Income Before Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Segment Reporting Information [Line Items] | |||||
Operating Income | $ 56,657 | $ 44,623 | $ 110,571 | $ 84,627 | |
Business restructuring | (114) | (225) | (195) | (582) | |
Other Income (Expense) | |||||
Interest, net | (1,567) | (1,259) | (3,091) | (2,489) | |
Other, net | 2,758 | 4,437 | 3,504 | 1,175 | |
Income before provision for income taxes | 57,848 | 47,801 | 110,984 | 83,313 | |
Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating Income | 75,898 | 67,256 | 149,692 | 114,912 | |
Operating Segments [Member] | Surfactants [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating Income | 45,896 | 48,503 | 99,106 | 84,659 | |
Operating Segments [Member] | Polymers [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating Income | 23,025 | 15,527 | 40,976 | 23,043 | |
Operating Segments [Member] | Specialty Products [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating Income | 6,977 | 3,226 | 9,610 | 7,210 | |
Segment Reconciling Items [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Unallocated corporate expenses | [1] | $ (19,127) | $ (22,408) | $ (38,926) | $ (29,703) |
[1] | Unallocated corporate expenses primarily comprise corporate administrative expenses (e.g., corporate finance, legal, human resources, information systems, deferred compensation and environmental remediation) that are not included in segment operating income and not used to evaluate segment performance. |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Additional Information (Detail) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | ||
Contract assets | $ 0 | |
Contract liabilities | 641,000 | $ 773,000 |
Contract liabilities revenue recognized | $ 0 | $ 10,709,000 |
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 | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation Of Revenue [Line Items] | ||||
Net sales | $ 595,511 | $ 460,549 | $ 1,133,251 | $ 910,536 |
Surfactants [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 384,002 | 332,335 | 754,938 | 659,406 |
Polymers [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 190,538 | 112,409 | 340,923 | 218,900 |
Specialty Products [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 20,971 | 15,805 | 37,390 | 32,230 |
North America [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 335,054 | 289,680 | 640,804 | 572,961 |
North America [Member] | Surfactants [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 221,645 | 207,571 | 442,580 | 415,517 |
North America [Member] | Polymers [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 95,591 | 68,780 | 166,469 | 130,621 |
North America [Member] | Specialty Products [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 17,818 | 13,329 | 31,755 | 26,823 |
Europe [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 150,228 | 90,980 | 292,104 | 190,131 |
Europe [Member] | Surfactants [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 65,339 | 55,812 | 136,433 | 115,472 |
Europe [Member] | Polymers [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 82,453 | 32,692 | 150,753 | 69,252 |
Europe [Member] | Specialty Products [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 2,436 | 2,476 | 4,918 | 5,407 |
Latin America [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 81,671 | 56,657 | 142,830 | 103,806 |
Latin America [Member] | Surfactants [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 79,968 | 56,194 | 140,137 | 102,704 |
Latin America [Member] | Polymers [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 986 | 463 | 1,976 | 1,102 |
Latin America [Member] | Specialty Products [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 717 | 717 | ||
Asia [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 28,558 | 23,232 | 57,513 | 43,638 |
Asia [Member] | Surfactants [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 17,050 | 12,758 | 35,788 | 25,713 |
Asia [Member] | Polymers [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | $ 11,508 | $ 10,474 | $ 21,725 | $ 17,925 |
Debt - Debt (Detail)
Debt - Debt (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Total debt | $ 238,881 | $ 198,669 |
Less current maturities | 42,352 | 37,857 |
Long-term debt | 196,529 | 160,812 |
Unsecured private placement 3.95% note [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 99,749 | $ 99,727 |
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 | $ 56,935 | $ 71,193 |
Debt instrument interest rate percentage | 3.86% | 3.86% |
Unsecured private placement 3.86% note [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2021 | 2021 |
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 | $ 27,768 | $ 27,749 |
Debt instrument interest rate percentage | 4.86% | 4.86% |
Unsecured private placement 4.86% note [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2021 | 2021 |
Unsecured private placement 4.86% note [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2023 | 2023 |
Unsecured private placement 2.30% note [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 49,934 | |
Debt instrument interest rate percentage | 2.30% | 2.30% |
Unsecured private placement 2.30% note [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2024 | 2024 |
Unsecured private placement 2.30% note [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2028 | 2028 |
Debt of foreign subsidiaries Unsecured bank debt, foreign currency [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 4,495 |
Debt - Debt (Parenthetical) (De
Debt - Debt (Parenthetical) (Detail) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Unamortized debt issuance cost | $ 614,000 | $ 617,000 |
Unsecured private placement 3.95% note [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance cost | 251,000 | 273,000 |
Unsecured private placement 3.86% note [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance cost | 208,000 | 236,000 |
Unsecured private placement 4.86% note [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance cost | 89,000 | 108,000 |
Unsecured private placement 2.30% note [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance cost | $ 66,000 | $ 0 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | Jun. 10, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||
Total debt | $ 238,881,000 | $ 198,669,000 | |
Series 2021-A Notes [Member] | |||
Debt Instrument [Line Items] | |||
Total debt | $ 50,000,000 | ||
Debt instrument interest rate percentage | 2.30% | ||
Debt instrument, periodic payment | semi-annually | ||
Debt Instrument, Maturity Date | Jun. 10, 2028 | ||
Multi Currency Revolving Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Maturity Date | Jan. 30, 2023 | ||
Revolving credit agreement | $ 350,000,000 | ||
Letters of Credit Outstanding | 6,993,000 | ||
Borrowings | 0 | ||
Unused Revolving credit | 343,007,000 | ||
Unrestricted retained earnings | $ 434,265,000 | $ 373,884,000 |
Other, Net - Other Net in Conso
Other, Net - Other Net in Consolidated Statements of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Other Nonoperating Income Expense [Abstract] | ||||
Foreign exchange (losses) gains | $ 106 | $ 423 | $ (229) | $ 991 |
Investment income | 189 | 93 | 495 | 168 |
Realized and unrealized gains on investments | 2,227 | 3,950 | 2,761 | 75 |
Net periodic pension benefit cost | 236 | (29) | 477 | (59) |
Other, net | $ 2,758 | $ 4,437 | $ 3,504 | $ 1,175 |
Business Restructuring - Additi
Business Restructuring - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)Employees | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring costs | $ 114,000 | $ 225,000 | $ 195,000 | $ 582,000 | |
2018 Restructuring [Member] | Germany [Member] | Surfactants [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring costs | 2,392,000 | $ 0 | |||
2018 Restructuring [Member] | Germany [Member] | Surfactants [Member] | Decommissioning Costs [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring costs | 79,000 | ||||
2016 Restructuring [Member] | Longford Mills [Member] | Surfactants [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Business restructuring | $ 8,812,000 | ||||
Number positions eliminated | Employees | 30 | ||||
2016 Restructuring [Member] | Longford Mills [Member] | Surfactants [Member] | Decommissioning Costs [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Business restructuring | $ 114,000 | $ 225,000 | $ 195,000 | $ 503,000 | |
2016 Restructuring [Member] | Longford Mills [Member] | Surfactants [Member] | Termination Benefits [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Business restructuring | 1,644,000 | ||||
2016 Restructuring [Member] | Longford Mills [Member] | Surfactants [Member] | Other Expense [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Business restructuring | $ 7,168,000 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) | Feb. 02, 2021USD ($) | Jan. 29, 2021USD ($)Site | Sep. 17, 2020USD ($) | Mar. 13, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) |
Business Acquisition [Line Items] | |||||||
Payment of working capital | $ 21,560,000 | ||||||
Payment of value added tax | 3,000,000 | ||||||
Cash acquired on working capital | $ 5,000,000 | ||||||
Purchase price | $ 3,503,000 | $ 2,040,000 | |||||
INVISTA Aromatic Polyester Polyol Business Acquisition [Member] | 2021 Acquisitions [Member] | Acquisition-related Costs [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Net income attributable to Stepan Company | $ 1,604,000 | ||||||
INVISTA Aromatic Polyester Polyol Business Acquisition [Member] | Polymers [Member] | 2021 Acquisitions [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Asset purchase agreement date | Jan. 29, 2021 | ||||||
Number of manufacturing site | Site | 2 | ||||||
Purchase price | $ 165,000,000 | ||||||
Acquisition-related expenses | $ 319,000 | 1,604,000 | |||||
INVISTA Aromatic Polyester Polyol Business Acquisition [Member] | Polymers [Member] | 2021 Acquisitions [Member] | Legal, Consulting, Valuation and Accounting Services [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition-related expenses | 3,551,000 | ||||||
INVISTA Aromatic Polyester Polyol Business Acquisition [Member] | Polymers [Member] | 2021 Acquisitions [Member] | Technology and Manufacturing Know-how [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Identifiable intangible assets | 13,000,000 | ||||||
INVISTA Aromatic Polyester Polyol Business Acquisition [Member] | Polymers [Member] | 2021 Acquisitions [Member] | Trademarks [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Identifiable intangible assets | 8,000,000 | ||||||
INVISTA Aromatic Polyester Polyol Business Acquisition [Member] | Polymers [Member] | 2021 Acquisitions [Member] | Customer Relationships [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Identifiable intangible assets | $ 24,500,000 | ||||||
INVISTA Aromatic Polyester Polyol Business Acquisition [Member] | Polymers [Member] | 2021 Acquisitions [Member] | Customer Relationships [Member] | Minimum [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Weighted average amortization periods of identifiable intangibles assets | 12 years | ||||||
INVISTA Aromatic Polyester Polyol Business Acquisition [Member] | Polymers [Member] | 2021 Acquisitions [Member] | Customer Relationships [Member] | Maximum [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Weighted average amortization periods of identifiable intangibles assets | 14 years | ||||||
INVISTA Aromatic Polyester Polyol Business Acquisition [Member] | Polymers [Member] | 2021 Acquisitions [Member] | Know-how and Trademarks [Member] | Minimum [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Weighted average amortization periods of identifiable intangibles assets | 7 years | ||||||
INVISTA Aromatic Polyester Polyol Business Acquisition [Member] | Polymers [Member] | 2021 Acquisitions [Member] | Know-how and Trademarks [Member] | Maximum [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Weighted average amortization periods of identifiable intangibles assets | 8 years | ||||||
Fermentation Plant Acquisition [Member] | 2021 Acquisitions [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price | $ 3,500,000 | ||||||
Clariant (Mexico) [Member] | Surfactants [Member] | 2020 Acquisitions [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price | 13,519,000 | ||||||
Payment of value added tax | $ 308,000 | $ 308,000 | |||||
Purchase price | $ 14,000,000 | ||||||
Clariant (Mexico) [Member] | Surfactants [Member] | 2020 Acquisitions [Member] | Trademarks and Know-how [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Identifiable intangible assets | $ 1,300,000 | ||||||
Logos Technologies Asset Acquisition [Member] | Surfactants [Member] | 2020 Acquisitions [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price | $ 2,040,000 | ||||||
Logos Technologies Asset Acquisition [Member] | Surfactants [Member] | 2020 Acquisitions [Member] | Laboratory Equipment [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Equipment acquired | 184,000 | ||||||
Logos Technologies Asset Acquisition [Member] | Surfactants [Member] | 2020 Acquisitions [Member] | Trademarks and Know-how [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets acquired | 1,392,000 | ||||||
Logos Technologies Asset Acquisition [Member] | Surfactants [Member] | 2020 Acquisitions [Member] | Patents [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets acquired | $ 464,000 |
Acquisitions - Summary of Purch
Acquisitions - Summary of Purchase Price Allocation for Major Components of Acquisition (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Jan. 29, 2021 | Dec. 31, 2020 |
Assets: | |||
Goodwill | $ 97,988 | $ 27,972 | |
2021 Acquisitions [Member] | INVISTA Aromatic Polyester Polyol Business Acquisition [Member] | Polymers [Member] | |||
Assets: | |||
Property, plant and equipment | $ 54,400 | ||
Identifiable intangibles assets | 45,500 | ||
Goodwill | 65,100 | ||
Total assets acquired | $ 165,000 |
Acquisitions - Summary of Pro f
Acquisitions - Summary of Pro forma Financial Information (Detail) - INVISTA Aromatic Polyester Polyol Business Acquisition [Member] - 2021 Acquisitions [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Business Acquisition [Line Items] | ||||
Net Sales | $ 595,511 | $ 480,949 | $ 1,145,690 | $ 956,836 |
Net Income Attributable to Stepan Company | $ 43,520 | $ 34,723 | $ 86,632 | $ 63,325 |
Acquisitions - Summary of Pur_2
Acquisitions - Summary of Purchase Price Allocation for Acquisition (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 17, 2020 |
Assets: | |||
Goodwill | $ 97,988 | $ 27,972 | |
2020 Acquisitions [Member] | Clariant (Mexico) [Member] | Surfactants [Member] | |||
Assets: | |||
Goodwill | $ 4,225 | ||
Property, plant and equipment | 175 | ||
Total assets acquired | 14,000 | ||
2020 Acquisitions [Member] | Clariant (Mexico) [Member] | Surfactants [Member] | Customer Lists [Member} | |||
Assets: | |||
Identifiable intangible assets | 8,000 | ||
2020 Acquisitions [Member] | Clariant (Mexico) [Member] | Surfactants [Member] | Trademarks and Know-how [Member] | |||
Assets: | |||
Identifiable intangible assets | 1,300 | ||
2020 Acquisitions [Member] | Clariant (Mexico) [Member] | Surfactants [Member] | Non-Compete Agreement [Member] | |||
Assets: | |||
Identifiable intangible assets | $ 300 |