Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 27, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
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 | 22,304,934 | |
Entity Tax Identification Number | 36-1823834 | |
Entity File Number | 1-4462 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 1101 Skokie Boulevard | |
Entity Address, Address Line Two | Suite 500 | |
Entity Address, City or Town | Northbrook | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60062 | |
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, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
Net Sales | $ 751,633 | $ 595,511 | $ 1,426,909 | $ 1,133,251 |
Cost of Sales | 620,019 | 483,830 | 1,186,076 | 912,590 |
Gross Profit | 131,614 | 111,681 | 240,833 | 220,661 |
Operating Expenses: | ||||
Selling | 15,552 | 14,990 | 30,829 | 29,494 |
Administrative | 24,079 | 23,974 | 45,651 | 46,612 |
Research, development and technical services | 16,690 | 14,988 | 33,163 | 30,137 |
Deferred compensation (income) expense | (3,406) | 958 | (10,907) | 3,652 |
Total Operating expenses | 52,915 | 54,910 | 98,736 | 109,895 |
Goodwill impairment (Note 18) | (978) | (978) | ||
Business restructuring expenses (Note 16) | (81) | (114) | (133) | (195) |
Operating Income | 77,640 | 56,657 | 140,986 | 110,571 |
Other Income (Expense): | ||||
Interest, net | (2,727) | (1,567) | (5,033) | (3,091) |
Other, net (Note 15) | (5,369) | 2,758 | (7,019) | 3,504 |
Nonoperating Income (Expense), Total | (8,096) | 1,191 | (12,052) | 413 |
Income Before Provision for Income Taxes | 69,544 | 57,848 | 128,934 | 110,984 |
Provision for Income Taxes | 17,418 | 14,545 | 31,999 | 27,070 |
Net Income | 52,126 | 43,303 | 96,935 | 83,914 |
Less: Net Income Attributable to Noncontrolling Interest | (25) | (25) | ||
Net Income Attributable to Stepan Company | $ 52,126 | $ 43,278 | $ 96,935 | $ 83,889 |
Net Income Per Common Share Attributable to Stepan Company (Note 10): | ||||
Basic | $ 2.29 | $ 1.89 | $ 4.24 | $ 3.65 |
Diluted | $ 2.26 | $ 1.85 | $ 4.19 | $ 3.59 |
Shares Used to Compute Net Income Per Common Share Attributable to Stepan Company (Note 10): | ||||
Basic | 22,792 | 22,952 | 22,842 | 22,963 |
Diluted | 23,055 | 23,345 | 23,115 | 23,338 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Statement Of Income And Comprehensive Income [Abstract] | |||||
Net income | $ 52,126 | $ 43,303 | $ 96,935 | $ 83,914 | |
Other Comprehensive Income: | |||||
Foreign currency translation adjustments (Note 11) | [1] | (36,096) | 15,175 | (26,267) | (3,266) |
Defined benefit pension adjustments, net of tax (Note 11) | 434 | 876 | 870 | 1,750 | |
Derivative instrument activity, net of tax (Note 11) | 2,043 | (3) | 4,831 | (5) | |
Total Other Comprehensive Income | (33,619) | 16,048 | (20,566) | (1,521) | |
Comprehensive Income | 18,507 | 59,351 | 76,369 | 82,393 | |
Comprehensive Income Attributable to Noncontrolling Interest (Note 2) | (51) | (43) | |||
Comprehensive Income Attributable to Stepan Company | $ 18,507 | $ 59,300 | $ 76,369 | $ 82,350 | |
[1]The prior year includes foreign currency translation adjustments related to noncontrolling interest. The 2021 noncontrolling interest was related to the Company’s China joint venture, which was dissolved in the fourth quarter of 2021. |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Current Assets: | ||
Cash and cash equivalents | $ 194,585 | $ 159,186 |
Receivables, net | 518,750 | 419,542 |
Inventories (Note 6) | 340,712 | 305,538 |
Other current assets | 33,320 | 29,102 |
Total current assets | 1,087,367 | 913,368 |
Property, Plant and Equipment: | ||
Cost | 2,182,693 | 2,090,957 |
Less: Accumulated depreciation | (1,263,159) | (1,240,353) |
Property, plant and equipment, net | 919,534 | 850,604 |
Goodwill, net (Note 17) | 93,152 | 97,187 |
Other intangible assets, net (Note 17) | 54,956 | 60,784 |
Long-term investments (Note 3) | 24,914 | 34,495 |
Operating lease assets (Note 7) | 65,525 | 69,612 |
Other non-current assets | 43,351 | 39,562 |
Total assets | 2,288,799 | 2,065,612 |
Current Liabilities: | ||
Current maturities of long-term debt (Note 14) | 142,489 | 40,718 |
Accounts payable | 366,233 | 323,362 |
Accrued liabilities | 129,506 | 136,396 |
Total current liabilities | 638,228 | 500,476 |
Deferred income taxes | 11,375 | 12,491 |
Long-term debt, less current maturities (Note 14) | 383,503 | 322,862 |
Non-current operating lease liabilities (Note 7) | 53,118 | 56,668 |
Other non-current liabilities | 76,864 | 98,922 |
Commitments and Contingencies (Note 8) | ||
Equity: | ||
Common stock, $1 par value; authorized 60,000,000 shares; 26,824,902 issued shares in 2022 and 26,760,714 issued shares in 2021 | 26,825 | 26,761 |
Additional paid-in capital | 229,510 | 220,820 |
Accumulated other comprehensive loss (Note 11) | (173,802) | (153,236) |
Retained earnings | 1,215,500 | 1,133,550 |
Less: Common treasury stock, at cost, 4,519,968 shares in 2022 and 4,340,729 shares in 2021 | (172,322) | (153,702) |
Total Stepan Company stockholders’ equity | 1,125,711 | 1,074,193 |
Total equity | 1,125,711 | 1,074,193 |
Total liabilities and equity | $ 2,288,799 | $ 2,065,612 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
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 | 26,824,902 | 26,760,714 |
Treasury stock, shares | 4,519,968 | 4,340,729 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash Flows From Operating Activities | ||
Net income | $ 96,935 | $ 83,914 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 46,252 | 45,311 |
Deferred compensation | (10,907) | 3,652 |
Realized and unrealized (gains) losses on long-term investments | 6,972 | (2,761) |
Stock-based compensation | 6,955 | 5,346 |
Deferred income taxes | 2,241 | (39,475) |
Goodwill impairment (Note 18) | 978 | |
Other non-cash items | 1,142 | 92 |
Changes in assets and liabilities: | ||
Receivables, net | (111,051) | (68,033) |
Inventories | (38,564) | (35,747) |
Other current assets | (4,838) | (63) |
Accounts payable and accrued liabilities | 43,326 | 34,027 |
Pension liabilities | (1,113) | (971) |
Environmental and legal liabilities | (379) | (463) |
Deferred revenues | 203 | (134) |
Net Cash Provided By Operating Activities | 38,152 | 24,695 |
Cash Flows From Investing Activities | ||
Expenditures for property, plant and equipment | (129,463) | (74,868) |
Asset acquisition (Note 17) | (3,503) | |
Business acquisition, net of cash acquired (Note 17) | (184,560) | |
Other, net | 3,156 | 1,430 |
Net Cash Used In Investing Activities | (126,307) | (261,501) |
Cash Flows From Financing Activities | ||
Revolving debt and bank overdrafts, net (Note 14) | 101,771 | 4,495 |
Other debt borrowings (Note 14) | 75,000 | 50,000 |
Other debt repayments | (14,286) | (14,286) |
Dividends paid | (14,985) | (13,724) |
Company stock repurchased | (16,976) | (10,895) |
Stock option exercises | 185 | 1,087 |
Other, net | (2,612) | (1,920) |
Net Cash Provided By Financing Activities | 128,097 | 14,757 |
Effect of Exchange Rate Changes on Cash | (4,543) | (836) |
Net Increase (Decrease) in Cash and Cash Equivalents | 35,399 | (222,885) |
Cash and Cash Equivalents at Beginning of Period | 159,186 | 349,938 |
Cash and Cash Equivalents at End of Period | 194,585 | 127,053 |
Supplemental Cash Flow Information | ||
Cash payments of income taxes, net of refunds/payments | 19,353 | 43,472 |
Cash payments of interest | $ 7,184 | $ 4,622 |
Condensed Consolidated Financia
Condensed Consolidated Financial Statements | 6 Months Ended |
Jun. 30, 2022 | |
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, 2022, and its results of operations and cash flows for the three and six months ended June 30, 2022 and 2021, 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 Annual Report on Form 10-K for the year ended December 31, 2021 (2021 Annual Report on Form 10-K). |
Reconciliations of Equity
Reconciliations of Equity | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Reconciliations of Equity | 2 . RECONCILIATIONS OF EQUITY Below are reconciliations of total equity for the three and six months ended June 30, 2022 and 2021: (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 Balance, March 31, 2022 $ 1,116,738 $ 26,814 $ 224,500 $ (165,239 ) $ (140,183 ) $ 1,170,846 Issuance of 1,133 shares of common stock under stock option plan 71 1 70 — — — Purchase of 69,734 shares of common stock (7,041 ) — — (7,041 ) — — Stock-based and deferred compensation 4,908 10 4,940 (42 ) — — Net income 52,126 — — — — 52,126 Other comprehensive income (33,619 ) — — — (33,619 ) — Cash dividends paid: Common stock ($0.335 per share) (7,472 ) — — — — (7,472 ) Balance, June 30, 2022 $ 1,125,711 $ 26,825 $ 229,510 $ (172,322 ) $ (173,802 ) $ 1,215,500 (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 Balance, December 31, 2021 $ 1,074,193 $ 26,761 $ 220,820 $ (153,702 ) $ (153,236 ) $ 1,133,550 Issuance of 2,647 shares of common stock under stock option plan 185 3 182 — — — Purchase of 167,940 shares of common stock (16,976 ) — — (16,976 ) — — Stock-based and deferred compensation 6,925 61 8,508 (1,644 ) — — Net income 96,935 — — — — 96,935 Other comprehensive income (20,566 ) — — — (20,566 ) — Cash dividends paid: Common stock ($0.670 per share) (14,985 ) — — — — (14,985 ) Balance, June 30, 2022 $ 1,125,711 $ 26,825 $ 229,510 $ (172,322 ) $ (173,802 ) $ 1,215,500 (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, 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 (loss) 16,048 — — — 16,022 — 26 Cash dividends paid: Common stock ($0.305 per share) (6,863 ) — — — — (6,863 ) — Balance, 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 (1) Reflects the noncontrolling interest in the Company’s China joint venture. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3 . FAIR VALUE MEASUREMENTS Derivative assets and liabilities include the foreign currency exchange and interest rate swap contracts discussed in Note 4, Derivate Instruments At June 30, 2022, and December 31, 2021, 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 $783,000 and $710,000 as of June 30, 2022 and December 31, 2021, respectively): (In thousands) June 30, 2022 December 31, 2021 Fair value $ 485,293 $ 369,456 Carrying value 526,775 364,290 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, 2022, and December 31, 2021, and the level within the fair value hierarchy in which the fair value measurements fall: (In thousands) June 30, 2022 Level 1 Level 2 Level 3 Mutual fund assets $ 24,914 $ 24,914 $ — $ — Derivative assets: Interest rate contracts 4,836 — 4,836 — Foreign currency contracts 10 — 10 — Total assets at fair value $ 29,760 $ 24,914 $ 4,846 $ — Derivative liabilities: Interest rate contracts $ — $ — $ — $ — Foreign currency contracts 324 — 324 — Total liabilities at fair value $ 324 $ — $ 324 $ — (In thousands) December 31, 2021 Level 1 Level 2 Level 3 Mutual fund assets $ 34,495 $ 34,495 $ — $ — Derivative assets: Foreign currency contracts 436 — 436 — Total assets at fair value $ 34,931 $ 34,495 $ 436 $ — Derivative liabilities: Foreign currency contracts $ 338 $ - $ 338 $ — |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 4 . DERIVATIVE INSTRUMENTS At June 30, 2022, and December 31, 2021, 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 $46,023,000 and $51,542,000, respectively. The Company is currently exposed to volatility in short-term interest rates and has mitigated certain portions of that risk by using an interest rate swap. The interest rate swap is recognized on the balance sheet as either an asset or a liability measured at fair value. At June 30, 2022, the Company held an interest rate swap contract with a notional value of $100,000,000 that was designated as a cash flow hedge. Period-to-period changes in the fair value of the interest rate swap are initially recognized as gains or losses in other comprehensive income. As the interest rate swap contract is settled, the corresponding gain or loss is reclassified out of accumulated other comprehensive income (AOCI) into earnings. The maturity date of the current interest swap contract is March 10, 2027. The fair values of the derivative instruments held by the Company on June 30, 2022, and December 31, 2021, are disclosed in Note 3, Fair Value Measurements Accumulated Other Comprehensive Income (Loss) |
Stock-based Compensation
Stock-based Compensation | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation | 5 . STOCK-BASED COMPENSATION Compensation expense recorded for all stock options, stock awards and stock appreciation rights (SARs) was as follows: (In thousands) Three Months Ended June 30 Six Months Ended June 30 2022 2021 2022 2021 $ 3,998 $ 2,807 $ 6,955 $ 5,346 The increase in stock-based compensation expense for the second quarter of 2022 compared to the second quarter of 2021 was primarily attributable to the accelerated vesting of certain equity grants for the Company’s former Chief Executive Officer, who retired on April 25, 2022. Unrecognized compensation costs for stock options, stock awards and SARs were as follows: (In thousands) June 30, 2022 December 31, 2021 Stock options $ 1,327 $ 2,229 Stock awards 9,924 4,971 SARs 7,606 4,828 The change in unrecognized compensation costs for stock options, stock awards and SARs primarily reflects the 2022 grants of: Shares Stock options 34,444 Stock awards (at target) 64,311 SARs 188,835 The unrecognized compensation costs at June 30, 2022, are expected to be recognized over weighted-average periods of 1.4 years for stock options, 2.0 years for stock awards and 2.0 years for SARs. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | 6 . INVENTORIES The composition of inventories at June 30, 2022, and December 31, 2021, was as follows: (In thousands) June 30, 2022 December 31, 2021 Finished goods $ 208,516 $ 184,010 Raw materials 132,196 121,528 Total inventories $ 340,712 $ 305,538 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Leases | 7 . LEASES 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, 2022 Six months ended June 30, 2022 Lease Cost Operating lease cost $ 3,943 $ 8,051 Short-term lease cost 1,362 2,700 Variable lease cost 223 425 Total lease cost $ 5,528 $ 11,176 Other Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow from operating leases $ 3,930 $ 8,005 Right-of-use assets obtained in exchange for new operating lease liabilities 743 3,562 The following table outlines the maturities of lease liabilities as of June 30, 2022. (In thousands) Undiscounted Cash Flows: 2022 (excluding the six months ended June 30, 2022) $ 7,806 2023 13,402 2024 8,663 2025 6,295 2026 4,686 Subsequent to 2026 37,414 Total Undiscounted Cash Flows $ 78,266 Less: Imputed interest (11,719 ) Present value $ 66,547 Current operating lease liabilities (1) 13,429 Non-current operating lease liabilities 53,118 Total lease liabilities $ 66,547 (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 % As of June 30, 2022, the Company had no leases that have not commenced. |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
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, 2022, the Company estimated a range of possible environmental losses and legal losses of $22,953,000 to $42,647,000. 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 $22,953,000 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, 2022: 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 2021, 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 Company’s 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 $3,364,000 for the Company’s portion of environmental response costs at the Wilmington site through June 30, 2022. 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 Elwood, Illinois (Millsdale) 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 the current recorded liability. |
Postretirement Benefit Plans
Postretirement Benefit Plans | 6 Months Ended |
Jun. 30, 2022 | |
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 2022 2021 2022 2021 Interest cost $ 1,235 $ 1,177 $ 2,469 $ 2,354 Expected return on plan assets (2,201 ) (2,586 ) (4,401 ) (5,171 ) Amortization of net actuarial loss 577 1,144 1,154 2,288 Net periodic benefit cost (income) $ (389 ) $ (265 ) $ (778 ) $ (529 ) UNITED KINGDOM (In thousands) Three Months Ended June 30 Six Months Ended June 30 2022 2021 2022 2021 Interest cost $ 95 $ 91 $ 196 $ 179 Expected return on plan assets (100 ) (81 ) (207 ) (162 ) Amortization of net actuarial loss 2 18 5 35 Net periodic benefit cost (income) $ (3 ) $ 28 $ (6 ) $ 52 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 $276,000 is expected to be paid related to the unfunded non-qualified plans in 2022. Of such amount, $171,000 had been paid related to the non-qualified plans as of June 30, 2022. U.K. Plan The Company’s U.K. subsidiary expects to contribute approximately $505,000 to its defined benefit pension plan in 2022. Of such amount, $253,000 had been contributed to the plan as of June 30, 2022. 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 plans include two qualified plans, one of which is a 401(k) plan and one of which is an employee stock ownership plan (profit sharing plan), and one non-qualified supplemental executive plan. In the six months ended June 30, 2022 and 2021, 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 2021 and 2022, 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 2022 2021 2022 2021 Retirement savings contributions $ 1,947 $ 1,978 $ 4,145 $ 4,017 Profit sharing contributions 1,959 1,865 3,425 3,731 Total defined contribution plan expenses $ 3,906 $ 3,843 $ 7,570 $ 7,748 The Company has a rabbi trust to fund the obligations of its non-qualified supplemental executive defined contribution plans (supplemental plans). The trust is comprised of 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 appreciate and decrease when the value of the trust assets decline (i.e., supplemental plan income is recognized). At June 30, 2022, the balance of the trust assets was $2,114,000, 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, 2022 | |
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, 2022 and 2021: (In thousands, except per share amounts) Three Months Ended June 30 Six Months Ended June 30 2022 2021 2022 2021 Computation of Basic Earnings per Share Net income attributable to Stepan Company $ 52,126 $ 43,278 $ 96,935 $ 83,889 Weighted-average number of common shares outstanding 22,792 22,952 22,842 22,963 Basic earnings per share $ 2.29 $ 1.89 $ 4.24 $ 3.65 Computation of Diluted Earnings per Share Net income attributable to Stepan Company $ 52,126 $ 43,278 $ 96,935 $ 83,889 Weighted-average number of shares outstanding 22,792 22,952 22,842 22,963 Add weighted-average net shares from assumed exercise of options (under treasury stock method) (1) 102 152 106 146 Add weighted-average net shares related to unvested stock awards (under treasury stock method) — 1 — 1 Add weighted-average net shares from assumed exercise of SARs (under treasury stock method) (1) 106 190 113 181 Add weighted-average contingently issuable net shares related to performance stock awards (under treasury stock method) 55 50 54 47 Weighted-average shares applicable to diluted earnings 23,055 23,345 23,115 23,338 Diluted earnings per share $ 2.26 $ 1.85 $ 4.19 $ 3.59 (1) 337,056 and 350,703 options/SARs to acquire shares of Company common stock were excluded from the computation of dilutive earnings per share for the three and six months ended June 30, 2022, respectively. Inclusion of the instruments would have had an antidilutive effect on the computations of the earnings per share. No options/SARs to acquire shares of Company common stock were excluded from the computations of diluted earnings per share for the three and six months ended June 30, 2021. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 11. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Below is the change in the Company’s accumulated other comprehensive income (AOCI) balance by component (net of income taxes) for the three and six months ended June 30, 2022 and 2021: (In thousands) Foreign Currency Translation Adjustments Defined Benefit Pension Plan Adjustments Cash Flow Hedge Adjustments Total 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 March 31, 2022 $ (125,439 ) $ (17,586 ) $ 2,842 $ (140,183 ) Other comprehensive income before reclassifications (36,096 ) — 2,045 (34,051 ) Amounts reclassified from AOCI — 434 (2 ) 432 Net current-period other comprehensive income (36,096 ) 434 2,043 (33,619 ) Balance at June 30, 2022 $ (161,535 ) $ (17,152 ) $ 4,885 $ (173,802 ) 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 ) Balance at December 31, 2021 $ (135,268 ) $ (18,022 ) $ 54 $ (153,236 ) Other comprehensive income before reclassifications (26,267 ) — 4,836 (21,431 ) Amounts reclassified from AOCI — 870 (5 ) 865 Net current-period other comprehensive income (26,267 ) 870 4,831 (20,566 ) Balance at June 30, 2022 $ (161,535 ) $ (17,152 ) $ 4,885 $ (173,802 ) Information regarding the reclassifications out of AOCI for the three and six months ended June 30, 2022 and 2021, 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 Condensed Consolidated Statements of Income 2022 2021 2022 2021 Amortization of defined benefit pension actuarial losses $ (579 ) $ (1,162 ) $ (1,159 ) $ (2,323 ) (2) 145 286 289 573 Tax benefit $ (434 ) $ (876 ) $ (870 ) $ (1,750 ) Net of tax Gains and losses on cash flow hedges: Foreign exchange contracts 2 3 5 5 Cost of sales 2 3 5 5 Total before tax — — — — Tax benefit $ 2 $ 3 $ 5 $ 5 Net of tax Total reclassifications for the period $ (432 ) $ (873 ) $ (865 ) $ (1,745 ) Net of tax (1) A mounts in parentheses denote expense to the Company’s Condensed Consolidated Statements 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, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | 1 2 . 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, 2022 and 2021, were as follows: (In thousands) Three Months Ended June 30 Six Months Ended June 30 2022 2021 2022 2021 Segment Net Sales Surfactants $ 485,084 $ 384,002 $ 953,350 $ 754,938 Polymers 238,885 190,538 425,964 340,923 Specialty Products 27,664 20,971 47,595 37,390 Total $ 751,633 $ 595,511 $ 1,426,909 $ 1,133,251 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, 2022 and 2021, are summarized below: (In thousands) Three Months Ended June 30 Six Months Ended June 30 2022 2021 2022 2021 Segment Operating Income Surfactants $ 48,249 $ 45,896 $ 102,018 $ 99,106 Polymers 33,912 23,025 48,041 40,976 Specialty Products 9,866 6,977 13,561 9,610 Segment operating income 92,027 75,898 163,620 149,692 Business restructuring (81 ) (114 ) (133 ) (195 ) Unallocated corporate expenses (1) (14,306 ) (19,127 ) (22,501 ) (38,926 ) Consolidated operating income 77,640 56,657 140,986 110,571 Other Income (Expense) Interest, net (2,727 ) (1,567 ) (5,033 ) (3,091 ) Other, net (5,369 ) 2,758 (7,019 ) 3,504 Income before provision for income taxes $ 69,544 $ 57,848 $ 128,934 $ 110,984 (1) Unallocated corporate expenses are primarily comprised of 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 are not used to evaluate segment performance. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contracts with Customers | 1 3 . REVENUE FROM CONTRACTS WITH CUSTOMERS As of June 30, 2022, the Company had $1,606,000 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 maintains a deferred revenue liability until the time a performance obligation has been satisfied. The Company recognized $1,376,000 of revenue in the first six months of 2022 from pre-existing contract liabilities at December 31, 2021. During 2020 the Company recorded $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. On June 30, 2022, $8,762,000 continued to be classified as long-term and $1,947,000 was classified as short-term. This deferred revenue will be recognized over the period of the contract and no revenue has been recognized from this contract as of June 30, 2022. The tables below provide a geographic disaggregation of net sales for the three and six months ended June 30, 2022 and 2021. 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. (In thousands) For the Three Months Ended June 30, 2022 Geographic Market Surfactants Polymers Specialty Total North America $ 278,310 $ 133,455 $ 23,004 $ 434,769 Europe 92,591 94,424 4,121 191,136 Latin America 97,987 1,149 539 99,675 Asia 16,196 9,857 — 26,053 Total $ 485,084 $ 238,885 $ 27,664 $ 751,633 (In thousands) For the Three Months Ended June 30, 2021 Geographic Market Surfactants Polymers Specialty Total 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 (In thousands) For the Six Months Ended June 30, 2022 Geographic Market Surfactants Polymers Specialty Total North America $ 551,538 $ 228,311 $ 39,680 $ 819,529 Europe 183,608 175,207 7,253 366,068 Latin America 183,421 2,369 662 186,452 Asia 34,783 20,077 — 54,860 Total $ 953,350 $ 425,964 $ 47,595 $ 1,426,909 (In thousands) For the Six Months Ended June 30, 2021 Geographic Market Surfactants Polymers Specialty Total 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 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | 14. DEBT At June 30, 2022 and December 31, 2021, debt was comprised of the following: (In thousands) Maturity Dates June 30, 2022 December 31, 2021 Unsecured private placement notes 3.95% (net of unamortized debt issuance cost of $208 and $230 for 2022 and 2021, respectively) 2022-2027 $ 85,506 $ 85,485 3.86% (net of unamortized debt issuance cost of $153 and $181 for 2022 and 2021, respectively) 2022-2025 42,704 56,962 4.86% (net of unamortized debt issuance cost of $49 and $69 for 2022 and 2021, respectively) 2022-2023 18,523 18,502 2.30% (net of unamortized debt issuance cost of $133 and $100 for 2022 and 2021, respectively) 2024-2028 49,867 49,900 2.37% (net of unamortized debt issuance cost of $139 and $108 for 2022 and 2021, respectively) 2024-2028 49,861 49,892 2.73% (net of unamortized debt issuance cost of $59 and $22 for 2022 and 2021, respectively) 2025-2031 99,941 99,978 2.83% (net of unamortized debt issuance cost of $42 and $0 for 2022 and 2021, respectively) 2026-2032 74,958 — Revolving credit facility borrowing 2022 100,000 — Debt of foreign subsidiaries Unsecured bank debt, foreign currency 2022 4,632 2,861 Total debt $ 525,992 $ 363,580 Less current maturities 142,489 40,718 Long-term debt $ 383,503 $ 322,862 On March 1, 2022, pursuant to a note purchase and master note agreement dated as of June 10, 2021 (the NYL note purchase agreement), the Company issued and sold $25,000,000 in aggregate principal amount of its 2.83% Senior Notes, Series 2022-A, due March 1, 2032 (the Series 2022-A Notes). In addition, on March 1, 2022, pursuant to a note purchase and private shelf agreement dated as of June 10, 2021 (the Prudential note purchase agreement), the Company issued and sold $50,000,000 in aggregate principal amount of its 2.83% Senior Notes, Series 2022-B, due March 1, 2032 (the Series 2022-B Notes). The Series 2022-A Notes and the Series 2022-B Notes bear interest at a fixed rate of 2.83%, with interest to be paid semi-annually and with equal annual principal payments beginning on March 1, 2026 and continuing through final maturity on March 1, 2032. The proceeds of the issuance of the Series 2022-A Notes and the Series 2022-B Notes are being used primarily for capital expenditures, to pay down existing debt and for other corporate purposes. The NYL note purchase agreement and the Prudential note purchase agreement require the maintenance of certain financial ratios and covenants that are substantially similar to the Company’s existing long-term debt and provide for customary events of default. On June 24, 2022, the Company entered into a credit agreement with a syndicate of banks. The credit agreement provides for credit facilities in an initial aggregate principal amount of $450,000,000, consisting of (a) a $350,000,000 multi-currency revolving credit facility and (b) a $100,000,000 delayed draw term loan credit facility, each of which matures on June 24, 2027. This credit agreement replaced the Company’s prior $ 350,000,000 revolving credit agreement. 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, 202 2 , the Company had outstanding letters of credit totaling $ 7,029,000 and $ 100,000,000 outstanding b orrowing s under the c redit agreement . There was $ available under the credit agreement as of June 30 , 202 2 . 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 $196,935,000 and $468,095,000 at June 30, 2022 and December 31, 2021, respectively. |
Other, Net
Other, Net | 6 Months Ended |
Jun. 30, 2022 | |
Other Income And Expenses [Abstract] | |
Other, Net | 15. OTHER, NET Other, net in the condensed consolidated statements of income included the following: (In thousands) Three Months Ended June 30 Six Months Ended June 30 2022 2021 2022 2021 Foreign exchange gains (losses) $ (1,507 ) $ 106 $ (1,225 ) $ (229 ) Investment income 231 189 394 495 Realized and unrealized gains (losses) on investments (4,485 ) 2,227 (6,972 ) 2,761 Net periodic pension benefit income 392 236 784 477 Other, net $ (5,369 ) $ 2,758 $ (7,019 ) $ 3,504 |
Business Restructuring
Business Restructuring | 6 Months Ended |
Jun. 30, 2022 | |
Restructuring And Related Activities [Abstract] | |
Business Restructuring | 16. BUSINESS RESTRUCTURING 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 2022. As of June 30, 2022, $9,383,000 of aggregate restructuring expense has been recognized, reflecting $1,644,000 of termination benefits for approximately 30 employees and $7,739,000 for other expenses, principally site decommissioning costs. The Company recognized $81,000 and $114,000 of decommissioning expenses in the second quarter of 2022 and 2021, respectively. The Company recognized $133,000 and $195,000 of decommissioning expenses in the first six months of 2022 and 2021, respectively. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2022 | |
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 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. 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. The working capital acquired included $5,900,000 of cash. The Company finalized the purchase price allocation during the third quarter of 2021. The following table summarizes the purchase price allocation for the major components of the acquisition: (In thousands) Assets: Property, plant and equipment $ 54,200 Identifiable intangible assets 46,000 Goodwill 64,800 Total assets acquired $ 165,000 Fermentation Plant Acquisition On February 2, 2021, the Company acquired a fermentation plant, located in Lake Providence, Louisiana. 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 cleaning. 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. |
Goodwill Impairment
Goodwill Impairment | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill Impairment | 1 8 . GOODWILL IMPAIRMENT The Company typically tests its goodwill balances for impairment in the second quarter of each calendar year. Testing is completed more frequently when triggering events or changes in circumstances indicate it is more likely than not that the fair value of a reporting unit to which goodwill relates has declined below its carrying value. During the second quarter of 2022 the Company completed its annual goodwill impairment testing and concluded that the goodwill related to its Philippines reporting unit was impaired. The Philippines reporting unit is part of the Company’s Surfactant segment. Goodwill impairment was recognized as a result of the reporting unit’s fair value declining below its carrying value. The Company estimates the fair value of each of its reporting units based on the average of market and income-based computations. See the Critical Accounting Policies, Goodwill and Intangible Assets The Company concluded that there was no goodwill impairment at any of its other reporting units based on its testing completed during the second quarter of 2022. |
Noncash Investing Activities
Noncash Investing Activities | 6 Months Ended |
Jun. 30, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Noncash Investing Activities | 1 9 . NONCASH INVESTING ACTIVITIES Noncash investing activities included liabilities (accounts payable) incurred for property, plant and equipment expenditures of approximately $29,032,000 and $12,271,000 that were unpaid at June 30, 2022 and 2021, respectively. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent Accounting Pronouncements | 20 . RECENT ACCOUNTING PRONOUNCEMENTS 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. In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805) Accounting for Contract Assets and Contract Liabilities from Contracts with Customers Revenue from Contracts with Customers (Topic 606) |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent Accounting Pronouncements | 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. In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805) Accounting for Contract Assets and Contract Liabilities from Contracts with Customers Revenue from Contracts with Customers (Topic 606) |
Reconciliations of Equity (Tabl
Reconciliations of Equity (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Reconciliations of Total Equity | Below are reconciliations of total equity for the three and six months ended June 30, 2022 and 2021: (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 Balance, March 31, 2022 $ 1,116,738 $ 26,814 $ 224,500 $ (165,239 ) $ (140,183 ) $ 1,170,846 Issuance of 1,133 shares of common stock under stock option plan 71 1 70 — — — Purchase of 69,734 shares of common stock (7,041 ) — — (7,041 ) — — Stock-based and deferred compensation 4,908 10 4,940 (42 ) — — Net income 52,126 — — — — 52,126 Other comprehensive income (33,619 ) — — — (33,619 ) — Cash dividends paid: Common stock ($0.335 per share) (7,472 ) — — — — (7,472 ) Balance, June 30, 2022 $ 1,125,711 $ 26,825 $ 229,510 $ (172,322 ) $ (173,802 ) $ 1,215,500 (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 Balance, December 31, 2021 $ 1,074,193 $ 26,761 $ 220,820 $ (153,702 ) $ (153,236 ) $ 1,133,550 Issuance of 2,647 shares of common stock under stock option plan 185 3 182 — — — Purchase of 167,940 shares of common stock (16,976 ) — — (16,976 ) — — Stock-based and deferred compensation 6,925 61 8,508 (1,644 ) — — Net income 96,935 — — — — 96,935 Other comprehensive income (20,566 ) — — — (20,566 ) — Cash dividends paid: Common stock ($0.670 per share) (14,985 ) — — — — (14,985 ) Balance, June 30, 2022 $ 1,125,711 $ 26,825 $ 229,510 $ (172,322 ) $ (173,802 ) $ 1,215,500 (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, 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 (loss) 16,048 — — — 16,022 — 26 Cash dividends paid: Common stock ($0.305 per share) (6,863 ) — — — — (6,863 ) — Balance, 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 (1) Reflects the noncontrolling interest in the Company’s China joint venture. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Values and Related Carrying Values of Debt | At June 30, 2022, and December 31, 2021, 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 $783,000 and $710,000 as of June 30, 2022 and December 31, 2021, respectively): (In thousands) June 30, 2022 December 31, 2021 Fair value $ 485,293 $ 369,456 Carrying value 526,775 364,290 |
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, 2022, and December 31, 2021, and the level within the fair value hierarchy in which the fair value measurements fall: (In thousands) June 30, 2022 Level 1 Level 2 Level 3 Mutual fund assets $ 24,914 $ 24,914 $ — $ — Derivative assets: Interest rate contracts 4,836 — 4,836 — Foreign currency contracts 10 — 10 — Total assets at fair value $ 29,760 $ 24,914 $ 4,846 $ — Derivative liabilities: Interest rate contracts $ — $ — $ — $ — Foreign currency contracts 324 — 324 — Total liabilities at fair value $ 324 $ — $ 324 $ — (In thousands) December 31, 2021 Level 1 Level 2 Level 3 Mutual fund assets $ 34,495 $ 34,495 $ — $ — Derivative assets: Foreign currency contracts 436 — 436 — Total assets at fair value $ 34,931 $ 34,495 $ 436 $ — Derivative liabilities: Foreign currency contracts $ 338 $ - $ 338 $ — |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Compensation Expense Recorded for All Stock Options, Stock Awards and Stock Appreciation Rights (SARs) | Compensation expense recorded for all stock options, stock awards and stock appreciation rights (SARs) was as follows: (In thousands) Three Months Ended June 30 Six Months Ended June 30 2022 2021 2022 2021 $ 3,998 $ 2,807 $ 6,955 $ 5,346 |
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, 2022 December 31, 2021 Stock options $ 1,327 $ 2,229 Stock awards 9,924 4,971 SARs 7,606 4,828 |
Share Based Payment Awards Granted in Period | The change in unrecognized compensation costs for stock options, stock awards and SARs primarily reflects the 2022 grants of: Shares Stock options 34,444 Stock awards (at target) 64,311 SARs 188,835 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Composition of Inventories | The composition of inventories at June 30, 2022, and December 31, 2021, was as follows: (In thousands) June 30, 2022 December 31, 2021 Finished goods $ 208,516 $ 184,010 Raw materials 132,196 121,528 Total inventories $ 340,712 $ 305,538 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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, 2022 Six months ended June 30, 2022 Lease Cost Operating lease cost $ 3,943 $ 8,051 Short-term lease cost 1,362 2,700 Variable lease cost 223 425 Total lease cost $ 5,528 $ 11,176 Other Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow from operating leases $ 3,930 $ 8,005 Right-of-use assets obtained in exchange for new operating lease liabilities 743 3,562 |
Schedule of Maturities of Lease Liabilities | The following table outlines the maturities of lease liabilities as of June 30, 2022. (In thousands) Undiscounted Cash Flows: 2022 (excluding the six months ended June 30, 2022) $ 7,806 2023 13,402 2024 8,663 2025 6,295 2026 4,686 Subsequent to 2026 37,414 Total Undiscounted Cash Flows $ 78,266 Less: Imputed interest (11,719 ) Present value $ 66,547 Current operating lease liabilities (1) 13,429 Non-current operating lease liabilities 53,118 Total lease liabilities $ 66,547 (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, 2022 | |
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 2022 2021 2022 2021 Interest cost $ 1,235 $ 1,177 $ 2,469 $ 2,354 Expected return on plan assets (2,201 ) (2,586 ) (4,401 ) (5,171 ) Amortization of net actuarial loss 577 1,144 1,154 2,288 Net periodic benefit cost (income) $ (389 ) $ (265 ) $ (778 ) $ (529 ) UNITED KINGDOM (In thousands) Three Months Ended June 30 Six Months Ended June 30 2022 2021 2022 2021 Interest cost $ 95 $ 91 $ 196 $ 179 Expected return on plan assets (100 ) (81 ) (207 ) (162 ) Amortization of net actuarial loss 2 18 5 35 Net periodic benefit cost (income) $ (3 ) $ 28 $ (6 ) $ 52 |
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 2022 2021 2022 2021 Retirement savings contributions $ 1,947 $ 1,978 $ 4,145 $ 4,017 Profit sharing contributions 1,959 1,865 3,425 3,731 Total defined contribution plan expenses $ 3,906 $ 3,843 $ 7,570 $ 7,748 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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, 2022 and 2021: (In thousands, except per share amounts) Three Months Ended June 30 Six Months Ended June 30 2022 2021 2022 2021 Computation of Basic Earnings per Share Net income attributable to Stepan Company $ 52,126 $ 43,278 $ 96,935 $ 83,889 Weighted-average number of common shares outstanding 22,792 22,952 22,842 22,963 Basic earnings per share $ 2.29 $ 1.89 $ 4.24 $ 3.65 Computation of Diluted Earnings per Share Net income attributable to Stepan Company $ 52,126 $ 43,278 $ 96,935 $ 83,889 Weighted-average number of shares outstanding 22,792 22,952 22,842 22,963 Add weighted-average net shares from assumed exercise of options (under treasury stock method) (1) 102 152 106 146 Add weighted-average net shares related to unvested stock awards (under treasury stock method) — 1 — 1 Add weighted-average net shares from assumed exercise of SARs (under treasury stock method) (1) 106 190 113 181 Add weighted-average contingently issuable net shares related to performance stock awards (under treasury stock method) 55 50 54 47 Weighted-average shares applicable to diluted earnings 23,055 23,345 23,115 23,338 Diluted earnings per share $ 2.26 $ 1.85 $ 4.19 $ 3.59 (1) 337,056 and 350,703 options/SARs to acquire shares of Company common stock were excluded from the computation of dilutive earnings per share for the three and six months ended June 30, 2022, respectively. Inclusion of the instruments would have had an antidilutive effect on the computations of the earnings per share. No options/SARs to acquire shares of Company common stock were excluded from the computations of diluted earnings per share for the three and six months ended June 30, 2021. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Summary of Changes in Accumulated Other Comprehensive Income | Below is the change in the Company’s accumulated other comprehensive income (AOCI) balance by component (net of income taxes) for the three and six months ended June 30, 2022 and 2021: (In thousands) Foreign Currency Translation Adjustments Defined Benefit Pension Plan Adjustments Cash Flow Hedge Adjustments Total 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 March 31, 2022 $ (125,439 ) $ (17,586 ) $ 2,842 $ (140,183 ) Other comprehensive income before reclassifications (36,096 ) — 2,045 (34,051 ) Amounts reclassified from AOCI — 434 (2 ) 432 Net current-period other comprehensive income (36,096 ) 434 2,043 (33,619 ) Balance at June 30, 2022 $ (161,535 ) $ (17,152 ) $ 4,885 $ (173,802 ) 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 ) Balance at December 31, 2021 $ (135,268 ) $ (18,022 ) $ 54 $ (153,236 ) Other comprehensive income before reclassifications (26,267 ) — 4,836 (21,431 ) Amounts reclassified from AOCI — 870 (5 ) 865 Net current-period other comprehensive income (26,267 ) 870 4,831 (20,566 ) Balance at June 30, 2022 $ (161,535 ) $ (17,152 ) $ 4,885 $ (173,802 ) |
Summary of Amounts Reclassifications Out of Accumulated Other Comprehensive Income | Information regarding the reclassifications out of AOCI for the three and six months ended June 30, 2022 and 2021, 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 Condensed Consolidated Statements of Income 2022 2021 2022 2021 Amortization of defined benefit pension actuarial losses $ (579 ) $ (1,162 ) $ (1,159 ) $ (2,323 ) (2) 145 286 289 573 Tax benefit $ (434 ) $ (876 ) $ (870 ) $ (1,750 ) Net of tax Gains and losses on cash flow hedges: Foreign exchange contracts 2 3 5 5 Cost of sales 2 3 5 5 Total before tax — — — — Tax benefit $ 2 $ 3 $ 5 $ 5 Net of tax Total reclassifications for the period $ (432 ) $ (873 ) $ (865 ) $ (1,745 ) Net of tax (1) A mounts in parentheses denote expense to the Company’s Condensed Consolidated Statements 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, 2022 | |
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, 2022 and 2021, were as follows: (In thousands) Three Months Ended June 30 Six Months Ended June 30 2022 2021 2022 2021 Segment Net Sales Surfactants $ 485,084 $ 384,002 $ 953,350 $ 754,938 Polymers 238,885 190,538 425,964 340,923 Specialty Products 27,664 20,971 47,595 37,390 Total $ 751,633 $ 595,511 $ 1,426,909 $ 1,133,251 |
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, 2022 and 2021, are summarized below: (In thousands) Three Months Ended June 30 Six Months Ended June 30 2022 2021 2022 2021 Segment Operating Income Surfactants $ 48,249 $ 45,896 $ 102,018 $ 99,106 Polymers 33,912 23,025 48,041 40,976 Specialty Products 9,866 6,977 13,561 9,610 Segment operating income 92,027 75,898 163,620 149,692 Business restructuring (81 ) (114 ) (133 ) (195 ) Unallocated corporate expenses (1) (14,306 ) (19,127 ) (22,501 ) (38,926 ) Consolidated operating income 77,640 56,657 140,986 110,571 Other Income (Expense) Interest, net (2,727 ) (1,567 ) (5,033 ) (3,091 ) Other, net (5,369 ) 2,758 (7,019 ) 3,504 Income before provision for income taxes $ 69,544 $ 57,848 $ 128,934 $ 110,984 (1) Unallocated corporate expenses are primarily comprised of 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 are not used to evaluate segment performance. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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, 2022 and 2021. 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. (In thousands) For the Three Months Ended June 30, 2022 Geographic Market Surfactants Polymers Specialty Total North America $ 278,310 $ 133,455 $ 23,004 $ 434,769 Europe 92,591 94,424 4,121 191,136 Latin America 97,987 1,149 539 99,675 Asia 16,196 9,857 — 26,053 Total $ 485,084 $ 238,885 $ 27,664 $ 751,633 (In thousands) For the Three Months Ended June 30, 2021 Geographic Market Surfactants Polymers Specialty Total 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 (In thousands) For the Six Months Ended June 30, 2022 Geographic Market Surfactants Polymers Specialty Total North America $ 551,538 $ 228,311 $ 39,680 $ 819,529 Europe 183,608 175,207 7,253 366,068 Latin America 183,421 2,369 662 186,452 Asia 34,783 20,077 — 54,860 Total $ 953,350 $ 425,964 $ 47,595 $ 1,426,909 (In thousands) For the Six Months Ended June 30, 2021 Geographic Market Surfactants Polymers Specialty Total 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 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | At June 30, 2022 and December 31, 2021, debt was comprised of the following: (In thousands) Maturity Dates June 30, 2022 December 31, 2021 Unsecured private placement notes 3.95% (net of unamortized debt issuance cost of $208 and $230 for 2022 and 2021, respectively) 2022-2027 $ 85,506 $ 85,485 3.86% (net of unamortized debt issuance cost of $153 and $181 for 2022 and 2021, respectively) 2022-2025 42,704 56,962 4.86% (net of unamortized debt issuance cost of $49 and $69 for 2022 and 2021, respectively) 2022-2023 18,523 18,502 2.30% (net of unamortized debt issuance cost of $133 and $100 for 2022 and 2021, respectively) 2024-2028 49,867 49,900 2.37% (net of unamortized debt issuance cost of $139 and $108 for 2022 and 2021, respectively) 2024-2028 49,861 49,892 2.73% (net of unamortized debt issuance cost of $59 and $22 for 2022 and 2021, respectively) 2025-2031 99,941 99,978 2.83% (net of unamortized debt issuance cost of $42 and $0 for 2022 and 2021, respectively) 2026-2032 74,958 — Revolving credit facility borrowing 2022 100,000 — Debt of foreign subsidiaries Unsecured bank debt, foreign currency 2022 4,632 2,861 Total debt $ 525,992 $ 363,580 Less current maturities 142,489 40,718 Long-term debt $ 383,503 $ 322,862 |
Other, Net (Tables)
Other, Net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Other Income And Expenses [Abstract] | |
Other Net in Condensed Consolidated Statements of Income | Other, net in the condensed consolidated statements of income included the following: (In thousands) Three Months Ended June 30 Six Months Ended June 30 2022 2021 2022 2021 Foreign exchange gains (losses) $ (1,507 ) $ 106 $ (1,225 ) $ (229 ) Investment income 231 189 394 495 Realized and unrealized gains (losses) on investments (4,485 ) 2,227 (6,972 ) 2,761 Net periodic pension benefit income 392 236 784 477 Other, net $ (5,369 ) $ 2,758 $ (7,019 ) $ 3,504 |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
2021 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 major components of the acquisition: (In thousands) Assets: Property, plant and equipment $ 54,200 Identifiable intangible assets 46,000 Goodwill 64,800 Total assets acquired $ 165,000 |
Reconciliations of Equity - Rec
Reconciliations of Equity - Reconciliations of Total Equity (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Reconciliations of total equity | |||||
Beginning Balance | $ 1,116,738 | $ 1,003,946 | $ 1,074,193 | $ 988,365 | |
Issuance of common stock under stock option plan | 71 | 706 | 185 | 1,087 | |
Purchase of common stock | (7,041) | (9,906) | (16,976) | (10,895) | |
Stock-based and deferred compensation | 4,908 | 3,282 | 6,925 | 3,290 | |
Net income | 52,126 | 43,303 | 96,935 | 83,914 | |
Other comprehensive income (loss) | (33,619) | 16,048 | (20,566) | (1,521) | |
Cash dividends paid: | |||||
Common stock | (7,472) | (6,863) | (14,985) | (13,724) | |
Ending Balance | 1,125,711 | 1,050,516 | 1,125,711 | 1,050,516 | |
Common Stock [Member] | |||||
Reconciliations of total equity | |||||
Beginning Balance | 26,814 | 26,726 | 26,761 | 26,658 | |
Issuance of common stock under stock option plan | 1 | 11 | 3 | 17 | |
Stock-based and deferred compensation | 10 | 15 | 61 | 77 | |
Cash dividends paid: | |||||
Ending Balance | 26,825 | 26,752 | 26,825 | 26,752 | |
Additional Paid-in Capital [Member] | |||||
Reconciliations of total equity | |||||
Beginning Balance | 224,500 | 209,471 | 220,820 | 206,716 | |
Issuance of common stock under stock option plan | 70 | 695 | 182 | 1,070 | |
Stock-based and deferred compensation | 4,940 | 3,803 | 8,508 | 6,183 | |
Cash dividends paid: | |||||
Ending Balance | 229,510 | 213,969 | 229,510 | 213,969 | |
Common Treasury Stock [Member] | |||||
Reconciliations of total equity | |||||
Beginning Balance | (165,239) | (137,052) | (153,702) | (133,629) | |
Purchase of common stock | (7,041) | (9,906) | (16,976) | (10,895) | |
Stock-based and deferred compensation | (42) | (536) | (1,644) | (2,970) | |
Cash dividends paid: | |||||
Ending Balance | (172,322) | (147,494) | (172,322) | (147,494) | |
Accumulated Other Comprehensive Income (Loss) [Member] | |||||
Reconciliations of total equity | |||||
Beginning Balance | (140,183) | (154,442) | (153,236) | (136,881) | |
Other comprehensive income (loss) | (33,619) | 16,022 | (20,566) | (1,539) | |
Cash dividends paid: | |||||
Ending Balance | (173,802) | (138,420) | (173,802) | (138,420) | |
Retained Earnings [Member] | |||||
Reconciliations of total equity | |||||
Beginning Balance | 1,170,846 | 1,057,579 | 1,133,550 | 1,023,829 | |
Net income | 52,126 | 43,278 | 96,935 | 83,889 | |
Cash dividends paid: | |||||
Common stock | (7,472) | (6,863) | (14,985) | (13,724) | |
Ending Balance | $ 1,215,500 | 1,093,994 | $ 1,215,500 | 1,093,994 | |
Noncontrolling Interest [Member] | |||||
Reconciliations of total equity | |||||
Beginning Balance | [1] | 1,664 | 1,672 | ||
Net income | [1] | 25 | 25 | ||
Other comprehensive income (loss) | [1] | 26 | 18 | ||
Cash dividends paid: | |||||
Ending Balance | [1] | $ 1,715 | $ 1,715 | ||
[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, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Number of shares of common stock issued under stock option plan | 1,133 | 10,779 | 2,647 | 16,565 |
Number of common stock shares purchased | 69,734 | 73,745 | 167,940 | 82,045 |
Common stock | $ 0.335 | $ 0.305 | $ 0.670 | $ 0.610 |
Common Stock [Member] | ||||
Number of shares of common stock issued under stock option plan | 1,133 | 10,779 | 2,647 | 16,565 |
Additional Paid-in Capital [Member] | ||||
Number of shares of common stock issued under stock option plan | 1,133 | 10,779 | 2,647 | 16,565 |
Common Treasury Stock [Member] | ||||
Number of common stock shares purchased | 69,734 | 73,745 | 167,940 | 82,045 |
Retained Earnings [Member] | ||||
Common stock | $ 0.335 | $ 0.305 | $ 0.670 | $ 0.610 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value Disclosures [Abstract] | ||
Unamortized debt issuance cost | $ 783,000 | $ 710,000 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Values and Related Carrying Values of Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Carrying value | $ 526,775 | $ 364,290 |
Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value | $ 485,293 | $ 369,456 |
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, 2022 | Dec. 31, 2021 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Mutual fund assets | $ 24,914 | $ 34,495 |
Derivative assets: | ||
Interest rate contracts | 4,836 | |
Foreign currency contracts | 10 | 436 |
Total assets at fair value | 29,760 | 34,931 |
Derivative liabilities: | ||
Foreign currency contracts | 324 | 338 |
Total liabilities at fair value | 324 | |
Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Mutual fund assets | 24,914 | 34,495 |
Derivative assets: | ||
Total assets at fair value | 24,914 | 34,495 |
Level 2 [Member] | ||
Derivative assets: | ||
Interest rate contracts | 4,836 | |
Foreign currency contracts | 10 | 436 |
Total assets at fair value | 4,846 | 436 |
Derivative liabilities: | ||
Foreign currency contracts | 324 | $ 338 |
Total liabilities at fair value | $ 324 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative notional amount | $ 46,023,000 | $ 51,542,000 |
Cash Flow Hedging [Member] | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative notional amount | $ 100,000,000 | |
Maturity date of current interest swap contract | Mar. 10, 2027 | |
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, 2022 | |
Stock Option [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Weighted average period for amortization of unrecognized compensation cost | 1 year 4 months 24 days |
Stock Awards [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Weighted average period for amortization of unrecognized compensation cost | 2 years |
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 Appreciation Rights (SARs) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Compensation expense | $ 3,998 | $ 2,807 | $ 6,955 | $ 5,346 |
Stock-based Compensation - Unre
Stock-based Compensation - Unrecognized Compensation Costs for Stock Options, Stock Awards and SARs (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Stock Option [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Unrecognized compensation costs for stock options, stock awards and SARs | $ 1,327 | $ 2,229 |
Stock Awards [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Unrecognized compensation costs for stock options, stock awards and SARs | 9,924 | 4,971 |
SARs [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Unrecognized compensation costs for stock options, stock awards and SARs | $ 7,606 | $ 4,828 |
Stock-based Compensation - Shar
Stock-based Compensation - Share Based Payment Awards Granted in Period (Detail) | 6 Months Ended |
Jun. 30, 2022 shares | |
Stock Option [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Stock options granted in period | 34,444 |
Stock Awards (at target) [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Awards granted in period | 64,311 |
SARs [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Awards granted in period | 188,835 |
Inventories - Composition of In
Inventories - Composition of Inventories (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 208,516 | $ 184,010 |
Raw materials | 132,196 | 121,528 |
Total inventories | $ 340,712 | $ 305,538 |
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, 2022 | Jun. 30, 2022 | |
Lease Cost | ||
Operating lease cost | $ 3,943 | $ 8,051 |
Short-term lease cost | 1,362 | 2,700 |
Variable lease cost | 223 | 425 |
Total lease cost | 5,528 | 11,176 |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flow from operating leases | 3,930 | 8,005 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 743 | $ 3,562 |
Leases - Schedule of Lease Liab
Leases - Schedule of Lease Liability Payments (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2022 (excluding the six months ended June 30, 2022) | $ 7,806 | |
2023 | 13,402 | |
2024 | 8,663 | |
2025 | 6,295 | |
2026 | 4,686 | |
Subsequent to 2026 | 37,414 | |
Total Undiscounted Cash Flows | 78,266 | |
Less: Imputed interest | (11,719) | |
Present value | 66,547 | |
Current operating lease liabilities | 13,429 | |
Non-current operating lease liabilities | 53,118 | $ 56,668 |
Total lease liabilities | $ 66,547 |
Leases - Schedule of Operating
Leases - Schedule of Operating Leases Weighted Average, Remaining Lease Term and Discount Rate (Detail) | Jun. 30, 2022 |
Leases [Abstract] | |
Weighted-average remaining lease term-operating leases | 10 years |
Weighted-average discount rate-operating leases | 3% |
Leases - Additional Information
Leases - Additional Information (Detail) | Jun. 30, 2022 USD ($) |
Leases [Abstract] | |
Leases not yet commenced | $ 0 |
Contingencies - Additional Info
Contingencies - Additional Information (Detail) - USD ($) | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Site Contingency [Line Items] | |||
Environmental losses accrual | $ 22,953,000 | $ 23,127,000 | |
Cash expenditures related to legal matters and environmental matters | $ 1,080,000 | $ 1,267,000 | |
Contribution for future response costs | 5% | ||
Wilmington Site [Member] | |||
Site Contingency [Line Items] | |||
Payment of environmental response costs | $ 3,364,000 | ||
Minimum [Member] | |||
Site Contingency [Line Items] | |||
Environmental losses and legal losses | 22,953,000 | ||
Maximum [Member] | |||
Site Contingency [Line Items] | |||
Environmental losses and legal losses | $ 42,647,000 |
Postretirement Benefit Plans -
Postretirement Benefit Plans - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic benefit cost (income) | $ (392) | $ (236) | $ (784) | $ (477) |
United States [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 1,235 | 1,177 | 2,469 | 2,354 |
Expected return on plan assets | (2,201) | (2,586) | (4,401) | (5,171) |
Amortization of net actuarial loss | 577 | 1,144 | 1,154 | 2,288 |
Net periodic benefit cost (income) | (389) | (265) | (778) | (529) |
United Kingdom [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 95 | 91 | 196 | 179 |
Expected return on plan assets | (100) | (81) | (207) | (162) |
Amortization of net actuarial loss | 2 | 18 | 5 | 35 |
Net periodic benefit cost (income) | $ (3) | $ 28 | $ (6) | $ 52 |
Postretirement Benefit Plans _2
Postretirement Benefit Plans - Defined Benefit Pension Plans - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Defined Contribution Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Balance of trust assets | $ 2,114,000 |
United States [Member] | Unfunded Plan [Member] | Non-qualified Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected contributions or payments to defined benefit plans | 276,000 |
Employer contributions or payments | 171,000 |
U.K Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected contributions or payments to defined benefit plans | 505,000 |
Employer contributions or payments | $ 253,000 |
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, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Defined Contribution Plan Disclosure [Line Items] | ||||
Total defined contribution plan expenses | $ 3,906 | $ 3,843 | $ 7,570 | $ 7,748 |
Retirement Savings Contributions [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Total defined contribution plan expenses | 1,947 | 1,978 | 4,145 | 4,017 |
Profit Sharing Contributions [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Total defined contribution plan expenses | $ 1,959 | $ 1,865 | $ 3,425 | $ 3,731 |
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, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Computation of Basic Earnings per Share | |||||
Net income attributable to Stepan Company | $ 52,126 | $ 43,278 | $ 96,935 | $ 83,889 | |
Weighted-average number of common shares outstanding | 22,792 | 22,952 | 22,842 | 22,963 | |
Basic earnings per share | $ 2.29 | $ 1.89 | $ 4.24 | $ 3.65 | |
Computation of Diluted Earnings per Share | |||||
Net income attributable to Stepan Company | $ 52,126 | $ 43,278 | $ 96,935 | $ 83,889 | |
Weighted-average number of common shares outstanding | 22,792 | 22,952 | 22,842 | 22,963 | |
Add weighted-average net shares related to unvested stock awards (under treasury stock method) | 1 | 1 | |||
Weighted-average shares applicable to diluted earnings | 23,055 | 23,345 | 23,115 | 23,338 | |
Diluted earnings per share | $ 2.26 | $ 1.85 | $ 4.19 | $ 3.59 | |
Stock Option [Member] | |||||
Computation of Diluted Earnings per Share | |||||
Add weighted-average net shares from assumed exercise of options (under treasury stock method) | [1] | 102 | 152 | 106 | 146 |
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] | 106 | 190 | 113 | 181 |
Performance Stock Award [Member] | |||||
Computation of Diluted Earnings per Share | |||||
Add weighted-average net shares from assumed exercise of options (under treasury stock method) | 55 | 50 | 54 | 47 | |
[1]337,056 and 350,703 options/SARs to acquire shares of Company common stock were excluded from the computation of dilutive earnings per share for the three and six months ended June 30, 2022, respectively. Inclusion of the instruments would have had an antidilutive effect on the computations of the earnings per share. No options/SARs to acquire shares of Company common stock were excluded from the computations of diluted earnings per share for the three and six months ended June 30, 2021. |
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, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
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 | 337,056 | 0 | 350,703 | 0 |
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, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | $ 1,074,193 | |||
Other comprehensive income before reclassifications | $ (34,051) | $ 15,149 | (21,431) | $ (3,284) |
Amounts reclassified from AOCI | 432 | 873 | 865 | 1,745 |
Net current-period other comprehensive income | (33,619) | 16,022 | (20,566) | (1,539) |
Ending Balance | 1,125,711 | 1,125,711 | ||
Foreign Currency Translation Adjustments [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | (125,439) | (125,516) | (135,268) | (107,083) |
Other comprehensive income before reclassifications | (36,096) | 15,149 | (26,267) | (3,284) |
Net current-period other comprehensive income | (36,096) | 15,149 | (26,267) | (3,284) |
Ending Balance | (161,535) | (110,367) | (161,535) | (110,367) |
Defined Benefit Pension Plan Adjustments [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | (17,586) | (28,987) | (18,022) | (29,861) |
Amounts reclassified from AOCI | 434 | 876 | 870 | 1,750 |
Net current-period other comprehensive income | 434 | 876 | 870 | 1,750 |
Ending Balance | (17,152) | (28,111) | (17,152) | (28,111) |
Cash Flow Hedge Adjustments [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | 2,842 | 61 | 54 | 63 |
Other comprehensive income before reclassifications | 2,045 | 4,836 | ||
Amounts reclassified from AOCI | (2) | (3) | (5) | (5) |
Net current-period other comprehensive income | 2,043 | (3) | 4,831 | (5) |
Ending Balance | 4,885 | 58 | 4,885 | 58 |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | (140,183) | (154,442) | (153,236) | (136,881) |
Ending Balance | $ (173,802) | $ (138,420) | $ (173,802) | $ (138,420) |
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, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Income Before Provision for Income Taxes | $ 69,544 | $ 57,848 | $ 128,934 | $ 110,984 | |
Tax benefit | (17,418) | (14,545) | (31,999) | (27,070) | |
Cost of Sales | 620,019 | 483,830 | 1,186,076 | 912,590 | |
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] | (579) | (1,162) | (1,159) | (2,323) |
Tax benefit | [1] | 145 | 286 | 289 | 573 |
Income applicable to common stock | [1] | (434) | (876) | (870) | (1,750) |
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 | [1] | 2 | 3 | 5 | 5 |
Income applicable to common stock | [1] | 2 | 3 | 5 | 5 |
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 | [1] | 2 | 3 | 5 | 5 |
Accumulated Other Comprehensive Income (Loss) [Member] | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Income applicable to common stock | [1] | $ (432) | $ (873) | $ (865) | $ (1,745) |
[1] A mounts in parentheses denote expense to the Company’s Condensed Consolidated Statements of Income 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 - Additional
Segment Reporting - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2022 Segment | |
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, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 751,633 | $ 595,511 | $ 1,426,909 | $ 1,133,251 |
Surfactants [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 485,084 | 384,002 | 953,350 | 754,938 |
Polymers [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 238,885 | 190,538 | 425,964 | 340,923 |
Specialty Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 27,664 | $ 20,971 | $ 47,595 | $ 37,390 |
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, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Segment Reporting Information [Line Items] | |||||
Operating Income | $ 77,640 | $ 56,657 | $ 140,986 | $ 110,571 | |
Business restructuring | (81) | (114) | (133) | (195) | |
Other Income (Expense) | |||||
Interest, net | (2,727) | (1,567) | (5,033) | (3,091) | |
Other, net | (5,369) | 2,758 | (7,019) | 3,504 | |
Income before provision for income taxes | 69,544 | 57,848 | 128,934 | 110,984 | |
Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating Income | 92,027 | 75,898 | 163,620 | 149,692 | |
Operating Segments [Member] | Surfactants [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating Income | 48,249 | 45,896 | 102,018 | 99,106 | |
Operating Segments [Member] | Polymers [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating Income | 33,912 | 23,025 | 48,041 | 40,976 | |
Operating Segments [Member] | Specialty Products [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating Income | 9,866 | 6,977 | 13,561 | 9,610 | |
Segment Reconciling Items [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Unallocated corporate expenses | [1] | $ (14,306) | $ (19,127) | $ (22,501) | $ (38,926) |
[1] (1) Unallocated corporate expenses are primarily comprised of 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 are 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, 2022 | Dec. 31, 2020 | Dec. 31, 2021 | |
Disaggregation Of Revenue [Line Items] | |||
Contract assets | $ 0 | ||
Contract liabilities | 1,606,000 | $ 1,376,000 | |
Contract liabilities revenue recorded | 0 | $ 10,709,000 | |
Long-Term [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Contract liabilities revenue recorded | 8,762,000 | ||
Short-Term [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Contract liabilities revenue recorded | $ 1,947,000 |
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, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation Of Revenue [Line Items] | ||||
Net sales | $ 751,633 | $ 595,511 | $ 1,426,909 | $ 1,133,251 |
Surfactants [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 485,084 | 384,002 | 953,350 | 754,938 |
Polymers [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 238,885 | 190,538 | 425,964 | 340,923 |
Specialty Products [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 27,664 | 20,971 | 47,595 | 37,390 |
North America [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 434,769 | 335,054 | 819,529 | 640,804 |
North America [Member] | Surfactants [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 278,310 | 221,645 | 551,538 | 442,580 |
North America [Member] | Polymers [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 133,455 | 95,591 | 228,311 | 166,469 |
North America [Member] | Specialty Products [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 23,004 | 17,818 | 39,680 | 31,755 |
Europe [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 191,136 | 150,228 | 366,068 | 292,104 |
Europe [Member] | Surfactants [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 92,591 | 65,339 | 183,608 | 136,433 |
Europe [Member] | Polymers [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 94,424 | 82,453 | 175,207 | 150,753 |
Europe [Member] | Specialty Products [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 4,121 | 2,436 | 7,253 | 4,918 |
Latin America [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 99,675 | 81,671 | 186,452 | 142,830 |
Latin America [Member] | Surfactants [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 97,987 | 79,968 | 183,421 | 140,137 |
Latin America [Member] | Polymers [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 1,149 | 986 | 2,369 | 1,976 |
Latin America [Member] | Specialty Products [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 539 | 717 | 662 | 717 |
Asia [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 26,053 | 28,558 | 54,860 | 57,513 |
Asia [Member] | Surfactants [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 16,196 | 17,050 | 34,783 | 35,788 |
Asia [Member] | Polymers [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | $ 9,857 | $ 11,508 | $ 20,077 | $ 21,725 |
Debt - Debt (Detail)
Debt - Debt (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Total debt | $ 525,992 | $ 363,580 |
Less current maturities | 142,489 | 40,718 |
Long-term debt | 383,503 | 322,862 |
Unsecured private placement 3.95% note [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 85,506 | $ 85,485 |
Debt instrument interest rate percentage | 3.95% | 3.95% |
Unsecured private placement 3.95% note [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2022 | 2022 |
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 | $ 42,704 | $ 56,962 |
Debt instrument interest rate percentage | 3.86% | 3.86% |
Unsecured private placement 3.86% note [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2022 | 2022 |
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 | $ 18,523 | $ 18,502 |
Debt instrument interest rate percentage | 4.86% | 4.86% |
Unsecured private placement 4.86% note [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2022 | 2022 |
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 | $ 49,867 | $ 49,900 |
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 |
Unsecured private placement 2.37% note [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 49,861 | $ 49,892 |
Debt instrument interest rate percentage | 2.37% | 2.37% |
Unsecured private placement 2.37% note [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2024 | 2024 |
Unsecured private placement 2.37% note [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2028 | 2028 |
Unsecured private placement 2.73% note [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 99,941 | $ 99,978 |
Debt instrument interest rate percentage | 2.73% | 2.73% |
Unsecured private placement 2.73% note [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2025 | 2025 |
Unsecured private placement 2.73% note [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2031 | 2031 |
Debt of foreign subsidiaries Unsecured bank debt, foreign currency [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 4,632 | $ 2,861 |
Maturity Dates | 2022 | 2022 |
Unsecured private placement 2.83% note [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 74,958 | |
Debt instrument interest rate percentage | 2.83% | 2.83% |
Unsecured private placement 2.83% note [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2026 | 2026 |
Unsecured private placement 2.83% note [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2032 | 2032 |
Revolving credit facility borrowing [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 100,000 | |
Maturity Dates | 2022 | 2022 |
Debt - Debt (Parenthetical) (De
Debt - Debt (Parenthetical) (Detail) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Unamortized debt issuance cost | $ 783,000 | $ 710,000 |
Unsecured private placement 3.95% note [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance cost | 208,000 | 230,000 |
Unsecured private placement 3.86% note [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance cost | 153,000 | 181,000 |
Unsecured private placement 4.86% note [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance cost | 49,000 | 69,000 |
Unsecured private placement 2.30% note [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance cost | 133,000 | 100,000 |
Unsecured private placement 2.37% note [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance cost | 139,000 | 108,000 |
Unsecured private placement 2.73% note [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance cost | 59,000 | 22,000 |
Unsecured private placement 2.83% note [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance cost | $ 42,000 | $ 0 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | Jun. 24, 2022 | Mar. 01, 2022 | Jun. 30, 2022 | Jun. 23, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | |||||
Total debt | $ 525,992,000 | $ 363,580,000 | |||
Multi-Currency Credit Facility with Syndicate of Banks [Member] | |||||
Debt Instrument [Line Items] | |||||
Borrowing capacity | $ 450,000,000 | ||||
Committed multi-currency credit facility, maturity date | Jun. 24, 2027 | ||||
Multi-Currency Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Total debt | 100,000,000 | ||||
Multi-Currency Revolving Credit Facility [Member] | Multi-Currency Credit Facility with Syndicate of Banks [Member] | |||||
Debt Instrument [Line Items] | |||||
Borrowing capacity | $ 350,000,000 | ||||
Delayed Draw Term Loan Credit Facility [Member] | Multi-Currency Credit Facility with Syndicate of Banks [Member] | |||||
Debt Instrument [Line Items] | |||||
Borrowing capacity | $ 100,000,000 | ||||
Series 2022-A Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 25,000,000 | ||||
Debt instrument interest rate percentage | 2.83% | ||||
Debt instrument, periodic payment | semi-annually | ||||
Debt Instrument, Maturity Date | Mar. 01, 2032 | ||||
Series 2022-B Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 50,000,000 | ||||
Debt instrument interest rate percentage | 2.83% | ||||
Debt Instrument, Maturity Date | Mar. 01, 2032 | ||||
Multi Currency Revolving Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Borrowing capacity | $ 350,000,000 | ||||
Outstanding borrowings | 100,000,000 | ||||
Letters of Credit Outstanding | 7,029,000 | ||||
Unused Revolving credit | 342,971,000 | ||||
Unrestricted retained earnings | $ 196,935,000 | $ 468,095,000 |
Other, Net - Other Net in Conde
Other, Net - Other Net in Condensed Consolidated Statements of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Other Nonoperating Income Expense [Abstract] | ||||
Foreign exchange gains (losses) | $ (1,507) | $ 106 | $ (1,225) | $ (229) |
Investment income | 231 | 189 | 394 | 495 |
Realized and unrealized gains (losses) on investments | (4,485) | 2,227 | (6,972) | 2,761 |
Net periodic pension benefit income | 392 | 236 | 784 | 477 |
Other, net | $ (5,369) | $ 2,758 | $ (7,019) | $ 3,504 |
Business Restructuring - Additi
Business Restructuring - Additional Information (Detail) - 2016 Restructuring [Member] - Longford Mills [Member] - Surfactants [Member] | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) Employees | Jun. 30, 2021 USD ($) | |
Restructuring Cost And Reserve [Line Items] | ||||
Business restructuring | $ 9,383,000 | |||
Number positions eliminated | Employees | 30 | |||
Termination Benefits [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Business restructuring | $ 1,644,000 | |||
Other Expense [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Business restructuring | 7,739,000 | |||
Decommissioning Costs | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Business restructuring | $ 81,000 | $ 114,000 | $ 133,000 | $ 195,000 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) | 6 Months Ended | ||
Feb. 02, 2021 USD ($) | Jan. 29, 2021 USD ($) Site | Jun. 30, 2021 USD ($) | |
Business Acquisition [Line Items] | |||
Purchase price | $ 184,560,000 | ||
Payment of working capital | $ 21,560,000 | ||
Payment of value added tax | 3,000,000 | ||
Cash acquired on working capital | $ 5,900,000 | ||
Purchase price | $ 3,503,000 | ||
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 | ||
Fermentation Plant Acquisition [Member] | 2021 Acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
Purchase price | $ 3,500,000 |
Acquisitions - Summary of Purch
Acquisitions - Summary of Purchase Price Allocation for Major Components of Acquisition (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Jan. 29, 2021 |
Assets: | |||
Goodwill | $ 93,152 | $ 97,187 | |
2021 Acquisitions [Member] | INVISTA Aromatic Polyester Polyol Business Acquisition [Member] | Polymers [Member] | |||
Assets: | |||
Property, plant and equipment | $ 54,200 | ||
Identifiable intangible assets | 46,000 | ||
Goodwill | 64,800 | ||
Total assets acquired | $ 165,000 |
Goodwill Impairment - Additiona
Goodwill Impairment - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 | Jun. 30, 2022 | |
Goodwill [Line Items] | ||
Goodwill impairment | $ 978,000 | $ 978,000 |
Philippines Reporting Unit [Member] | ||
Goodwill [Line Items] | ||
Goodwill impairment | 978,000 | $ 978,000 |
Other Reporting Units [Member] | ||
Goodwill [Line Items] | ||
Goodwill impairment | $ 0 |
Noncash Investing Activities -
Noncash Investing Activities - Additional Information (Detail) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Supplemental Cash Flow Elements [Abstract] | ||
Noncash investing activities, payables incurred for property, plant and equipment expenditures, unpaid | $ 29,032,000 | $ 12,271,000 |