Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 31, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | SCL | ||
Entity Registrant Name | STEPAN CO | ||
Entity Central Index Key | 94,049 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 22,424,698 | ||
Entity Public Float | $ 1,159,775,366 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Income Statement [Abstract] | |||||
Net Sales (Note 1) | [1] | $ 1,766,166 | $ 1,776,167 | $ 1,927,213 | |
Cost of Sales | 1,427,621 | 1,467,926 | 1,677,650 | ||
Gross Profit | 338,545 | 308,241 | 249,563 | ||
Operating Expenses: | |||||
Selling (Note 1) | 57,212 | 55,522 | 54,763 | ||
Administrative (Note 1) | 75,185 | 76,048 | 66,549 | ||
Research, development and technical services (Note 1) | 56,086 | 50,243 | 45,451 | ||
Deferred compensation expense (income) | 16,805 | 6,500 | (11,903) | ||
Total Operating expenses | 205,288 | 188,313 | 154,860 | ||
Gain on sale of product line | 2,862 | ||||
Business restructuring and asset impairments (Note 22) | (7,064) | (4,009) | |||
Operating Income | 126,193 | 122,790 | 90,694 | ||
Other Income (Expense): | |||||
Interest, net (Note 6) | (13,205) | (14,533) | (11,441) | ||
Loss from equity in joint ventures (Notes 1 and 25) | (6,985) | (5,008) | |||
Other, net (Note 8) | 828 | 1,584 | 1,290 | ||
Nonoperating Income (Expense), Total | (12,377) | (19,934) | (15,159) | ||
Income Before Provision for Income Taxes | 113,816 | 102,856 | 75,535 | ||
Provision for Income Taxes (Note 9) | 27,618 | 26,819 | 18,454 | ||
Net Income | 86,198 | [2] | 76,037 | 57,081 | |
Net (Income) Loss Attributable to Noncontrolling Interests (Note 1) | (7) | (69) | 20 | ||
Net Income Attributable to Stepan Company | $ 86,191 | [2] | $ 75,968 | $ 57,101 | |
Net Income Per Common Share Attributable to Stepan Company (Note 18): | |||||
Basic | $ 3.78 | $ 3.34 | $ 2.51 | ||
Diluted | $ 3.73 | [2] | $ 3.32 | $ 2.49 | |
Shares Used to Compute Net Income Per Common Share Attributable to Stepan Company (Note 18): | |||||
Basic | 22,793 | 22,730 | 22,758 | ||
Diluted | 23,094 | 22,858 | 22,917 | ||
[1] | Net sales are attributed to countries based on the location of the Company facility making the sales. | ||||
[2] | The amounts for net income, net income attributable to Stepan Company and net income attributable to Stepan Company per diluted share for the first, second and third quarters of 2016 have been changed from the amounts originally reported as a result of the Company’s early adoption of ASU No. 2016-9, Compensation – Stock Compensation (Topic 718): Improvement to Employee Share-Based Payment Accounting. See Note 1 for additional information regarding ASU No. 2016-9. Below are the originally reported amounts for the items that changed: 2016 (In thousands, except per share data) First Second Third Net Income $27,657 $27,870 $20,432 Net Income Attributable to Stepan Company 27,654 27,865 20,427 Per Diluted Share 1.21 1.21 0.89 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net Income | $ 86,198 | [1] | $ 76,037 | $ 57,081 |
Other Comprehensive Income (Loss): | ||||
Foreign currency translation adjustments (Note 19) | (8,533) | (45,490) | (31,980) | |
Defined benefit pension plans: | ||||
Net actuarial gain (loss) arising in period (net of taxes of $3,391, $568 and $14,227 for 2016, 2015 and 2014, respectively) | 3,818 | 1,311 | (24,186) | |
Amortization of prior service cost included in pension expense (net of taxes of $4, $6 and $6 for 2016, 2015 and 2014, respectively) | 10 | 11 | 14 | |
Amortization of actuarial loss included in pension expense (net of taxes of $1,301, $1,755 and $1,032 for 2016, 2015 and 2014, respectively) | 2,207 | 3,002 | 1,695 | |
Net defined benefit pension plan activity (Note 19) | 6,035 | 4,324 | (22,477) | |
Cash flow hedges: | ||||
Losses arising in period (net of taxes of $9, $26, $0 in 2016, 2015 and 2014, respectively) | (19) | (49) | ||
Reclassifications to income in period (net of taxes of $28, $8 and $7 in 2016, 2015 and 2014, respectively) | 45 | 5 | 3 | |
Net cash flow hedge activity (Note 19) | 26 | (44) | 3 | |
Other Comprehensive Loss | (2,472) | (41,210) | (54,454) | |
Comprehensive Income | 83,726 | 34,827 | 2,627 | |
Comprehensive (Income) Loss Attributable to Noncontrolling Interests | 88 | (2) | 57 | |
Comprehensive Income Attributable to Stepan Company | $ 83,814 | $ 34,825 | $ 2,684 | |
[1] | The amounts for net income, net income attributable to Stepan Company and net income attributable to Stepan Company per diluted share for the first, second and third quarters of 2016 have been changed from the amounts originally reported as a result of the Company’s early adoption of ASU No. 2016-9, Compensation – Stock Compensation (Topic 718): Improvement to Employee Share-Based Payment Accounting. See Note 1 for additional information regarding ASU No. 2016-9. Below are the originally reported amounts for the items that changed: 2016 (In thousands, except per share data) First Second Third Net Income $27,657 $27,870 $20,432 Net Income Attributable to Stepan Company 27,654 27,865 20,427 Per Diluted Share 1.21 1.21 0.89 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net actuarial loss arising in period, tax | $ 3,391 | $ 568 | $ (14,227) |
Amortization of prior service cost included in pension expense, tax | 4 | 6 | 6 |
Amortization of actuarial loss included in pension expense, tax | 1,301 | 1,755 | 1,032 |
Losses arising in period, tax | (9) | (26) | 0 |
Reclassifications to income in period, tax | $ 28 | $ 8 | $ 7 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | ||
Current Assets: | ||||
Cash and cash equivalents | $ 225,743 | $ 176,143 | ||
Receivables, less allowances of $9,755 in 2016 and $8,046 in 2015 | 263,408 | 249,602 | ||
Inventories (Note 5) | 173,663 | 170,424 | ||
Other current assets | 22,727 | 23,404 | ||
Total current assets | 685,541 | 619,573 | ||
Property, Plant and Equipment: | ||||
Land | 15,779 | 15,132 | ||
Buildings and improvements | 184,773 | 173,964 | ||
Machinery and equipment | 1,241,838 | 1,161,051 | ||
Construction in progress | 71,088 | 95,951 | ||
Property, Plant and Equipment, Gross | 1,513,478 | 1,446,098 | ||
Less: accumulated depreciation | (930,764) | (890,635) | ||
Property, plant and equipment, net | 582,714 | 555,463 | ||
Goodwill, net (Note 4) | 25,308 | 11,265 | ||
Other intangible assets, net (Note 4) | 22,339 | 17,957 | ||
Long-term investments (Note 2) | 24,055 | 20,910 | ||
Other non-current assets | [1] | 13,933 | 13,224 | |
Total Assets | [2] | 1,353,890 | 1,238,392 | |
Current Liabilities: | ||||
Current maturities of long-term debt (Note 6) | 28,154 | 18,806 | [3] | |
Accounts payable | 158,316 | 128,605 | ||
Accrued liabilities (Note 14) | 110,795 | 95,833 | ||
Total current liabilities | 297,265 | 243,244 | ||
Deferred income taxes (Note 9) | 12,497 | 9,455 | ||
Long-term debt, less current maturities (Note 6) | [1] | 288,859 | 312,548 | [3] |
Other non-current liabilities (Note 15) | 119,353 | 114,761 | ||
Commitments and Contingencies (Note 16) | ||||
Equity (Note 10): | ||||
Common stock, $1 par value; authorized 60,000,000 shares; issued 25,894,782 shares in 2016 and 25,709,391 shares in 2015 | 25,895 | 25,709 | ||
Additional paid-in capital | 158,042 | 144,601 | ||
Accumulated other comprehensive loss (Note 19) | (127,465) | (125,088) | ||
Retained earnings | 649,070 | 580,208 | ||
Less: Common treasury stock, at cost, 3,470,084 shares in 2016 and 3,428,541 shares in 2015 | (70,938) | (68,446) | ||
Total Stepan Company stockholders’ equity | 634,604 | 556,984 | ||
Noncontrolling interests | 1,312 | 1,400 | ||
Total equity | 635,916 | 558,384 | ||
Total Liabilities and Equity | $ 1,353,890 | $ 1,238,392 | ||
[1] | The 2015 amounts have been changed from the amounts originally reported at December 31, 2015, due to the Company’s January 1, 2016, adoption of the new U.S. accounting guidance regarding the classification of debt issuance costs. See Note 1 to the consolidated financial statements for additional information regarding Accounting Standards Update No. 2015-3. | |||
[2] | The 2015 amounts in the noted line items have been changed from the amounts originally reported due to the reclassification of debt issuance costs pursuant to the Company’s adoption of ASU No. 2015-3. See Note 1 for further information. | |||
[3] | Certain balances have been reclassified from those originally presented at December 31, 2015, due to the Company’s January 1, 2016, adoption of the new U.S. GAAP guidance regarding the classification of debt issuance costs. See Note 1 for additional information regarding ASU No. 2015-3. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Allowances | $ 9,755 | $ 8,046 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 60,000,000 | 60,000,000 |
Common stock, shares issued | 25,894,782 | 25,709,391 |
Treasury stock, shares | 3,470,084 | 3,428,541 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Cash Flows From Operating Activities | |||||
Net income | $ 86,198 | [1] | $ 76,037 | $ 57,081 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation and amortization | 74,967 | 66,985 | 63,804 | ||
Deferred compensation | 16,805 | 6,500 | (11,903) | ||
Realized and unrealized gain on long-term investments | (152) | (21) | (241) | ||
Stock-based compensation | 12,618 | 4,374 | (68) | ||
Deferred income taxes | (8,426) | 3,001 | 5,306 | ||
Other non-cash items | 7,334 | 3,830 | 8,260 | ||
Changes in assets and liabilities, excluding effects of acquisitions: | |||||
Receivables, net | (17,180) | 4,160 | (21,229) | ||
Inventories | (3,774) | 2,851 | (18,521) | ||
Other current assets | 1,471 | (3,410) | 1,430 | ||
Accounts payable and accrued liabilities | 38,261 | 21,219 | (4,376) | ||
Pension liabilities | 607 | 932 | (2,709) | ||
Environmental and legal liabilities | 4,561 | (1,398) | 6,493 | ||
Deferred revenues | (1,128) | (1,345) | (732) | ||
Net Cash Provided By Operating Activities | [2] | 212,162 | 183,715 | 82,595 | |
Cash Flows From Investing Activities | |||||
Expenditures for property, plant and equipment | (103,076) | (119,349) | (101,819) | ||
Business acquisitions, net of cash acquired (Note 20) | (23,510) | (5,133) | |||
Proceeds from sale of product line (Note 21) | 3,262 | ||||
Other, net | (3,935) | (4,750) | (7,402) | ||
Net Cash Used In Investing Activities | (130,521) | (125,970) | (109,221) | ||
Cash Flows From Financing Activities | |||||
Revolving debt and bank overdrafts, net | 1,292 | (26,217) | 14,219 | ||
Other debt borrowings | 100,000 | 4,923 | |||
Other debt repayments | (15,069) | (13,098) | (12,656) | ||
Dividends paid | (17,329) | (16,300) | (15,387) | ||
Company stock repurchased | (2,408) | (2,000) | (7,924) | ||
Stock option exercises | 4,017 | 777 | 1,754 | ||
Other, net | (275) | (673) | (421) | ||
Net Cash Provided By (Used In) Financing Activities | [2] | (29,772) | 42,489 | (15,492) | |
Effect of Exchange Rate Changes on Cash | (2,269) | (9,306) | (6,014) | ||
Net Increase (Decrease) in Cash and Cash Equivalents | 49,600 | 90,928 | (48,132) | ||
Cash and Cash Equivalents at Beginning of Year | 176,143 | 85,215 | 133,347 | ||
Cash and Cash Equivalents at End of Year | 225,743 | 176,143 | 85,215 | ||
Supplemental Cash Flow Information | |||||
Cash payments of income taxes, net of refunds | 30,581 | 21,784 | 23,142 | ||
Cash payments of interest | $ 14,730 | $ 11,943 | $ 12,447 | ||
[1] | The amounts for net income, net income attributable to Stepan Company and net income attributable to Stepan Company per diluted share for the first, second and third quarters of 2016 have been changed from the amounts originally reported as a result of the Company’s early adoption of ASU No. 2016-9, Compensation – Stock Compensation (Topic 718): Improvement to Employee Share-Based Payment Accounting. See Note 1 for additional information regarding ASU No. 2016-9. Below are the originally reported amounts for the items that changed: 2016 (In thousands, except per share data) First Second Third Net Income $27,657 $27,870 $20,432 Net Income Attributable to Stepan Company 27,654 27,865 20,427 Per Diluted Share 1.21 1.21 0.89 | ||||
[2] | Amounts for 2015 and 2014 have been changed from the amounts originally reported for the years ended December 31, 2015 and 2014 as a result of the Company’s adoption of the new accounting guidance regarding stock-based compensation. See Note 1 to the consolidated financial statements for additional information regarding Accounting Standards Update No. 2016-9. |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | Noncontrolling Interests' Equity [Member] | |
Beginning Balance at Dec. 31, 2013 | $ 553,741 | $ 25,564 | $ 135,693 | $ (58,269) | $ (29,528) | $ 478,826 | $ 1,455 | |
Issuance of common stock under stock option plan | 1,754 | 67 | 1,687 | |||||
Purchase of common stock | (7,924) | (7,924) | ||||||
Stock-based and deferred compensation | 1,493 | 9 | 1,553 | (69) | ||||
Net Income | 57,081 | 57,101 | (20) | |||||
Other comprehensive income | (54,454) | (54,417) | (37) | |||||
Cash dividends paid: | ||||||||
Common stock | (15,387) | (15,387) | ||||||
Non-qualified stock option and stock award income tax benefit | 640 | 640 | ||||||
Ending Balance at Dec. 31, 2014 | 536,944 | 25,640 | 139,573 | (66,262) | (83,945) | 520,540 | 1,398 | |
Issuance of common stock under stock option plan | 777 | 45 | 732 | |||||
Purchase of common stock | (2,000) | (2,000) | ||||||
Stock-based and deferred compensation | 3,694 | 24 | 3,854 | (184) | ||||
Net Income | 76,037 | 75,968 | 69 | |||||
Other comprehensive income | (41,210) | (41,143) | (67) | |||||
Cash dividends paid: | ||||||||
Common stock | (16,300) | (16,300) | ||||||
Non-qualified stock option and stock award income tax benefit | 442 | 442 | ||||||
Ending Balance at Dec. 31, 2015 | 558,384 | 25,709 | 144,601 | (68,446) | (125,088) | 580,208 | 1,400 | |
Issuance of common stock under stock option plan | 4,017 | 168 | 3,849 | |||||
Purchase of common stock | (2,408) | (2,408) | ||||||
Stock-based and deferred compensation | 9,526 | 18 | 9,592 | (84) | ||||
Net Income | 86,198 | [1] | 86,191 | 7 | ||||
Other comprehensive income | (2,472) | (2,377) | (95) | |||||
Cash dividends paid: | ||||||||
Common stock | (17,329) | (17,329) | ||||||
Ending Balance at Dec. 31, 2016 | $ 635,916 | $ 25,895 | $ 158,042 | $ (70,938) | $ (127,465) | $ 649,070 | $ 1,312 | |
[1] | The amounts for net income, net income attributable to Stepan Company and net income attributable to Stepan Company per diluted share for the first, second and third quarters of 2016 have been changed from the amounts originally reported as a result of the Company’s early adoption of ASU No. 2016-9, Compensation – Stock Compensation (Topic 718): Improvement to Employee Share-Based Payment Accounting. See Note 1 for additional information regarding ASU No. 2016-9. Below are the originally reported amounts for the items that changed: 2016 (In thousands, except per share data) First Second Third Net Income $27,657 $27,870 $20,432 Net Income Attributable to Stepan Company 27,654 27,865 20,427 Per Diluted Share 1.21 1.21 0.89 |
Consolidated Statements of Equ9
Consolidated Statements of Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Number of shares of common stock issued under stock option plan | 167,675 | 45,289 | 67,029 |
Number of common stock shares purchased | 43,835 | 41,915 | 60,595 |
Common stock | $ 0.78 | $ 0.73 | $ 0.69 |
Common Stock [Member] | |||
Number of shares of common stock issued under stock option plan | 167,675 | 45,289 | 67,029 |
Additional Paid-in Capital [Member] | |||
Number of shares of common stock issued under stock option plan | 167,675 | 45,289 | 67,029 |
Treasury Stock [Member] | |||
Number of common stock shares purchased | 43,835 | 41,915 | 60,595 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Nature of Operations Stepan Company (the Company) operations consist predominantly of the production and sale of specialty and intermediate chemicals, which are sold to other manufacturers for use in a variety of end products. Principal markets for all products are manufacturers of cleaning and washing compounds (including detergents, shampoos, fabric softeners, toothpastes and household cleaners), paints, cosmetics, food, beverages, nutritional supplements, agricultural products, plastics, furniture, automotive equipment, insulation and refrigeration. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires Company management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Principles of Consolidation The consolidated financial statements include the accounts of the Company and all wholly and majority-owned subsidiaries in which the Company exercises controlling influence. The equity method is used to account for investments in which the Company exercises significant but noncontrolling influence. Intercompany balances and transactions are eliminated in consolidation. The Company has an 80 percent ownership interest in the Nanjing Stepan Jinling Chemical Limited Liability Company (a joint venture) and exercises controlling influence over the entity. Therefore, Nanjing Stepan Jinling Chemical Limited Liability Company’s accounts are included in the Company’s consolidated financial statements. The partner’s interest in the joint venture’s net income is reported in the net income attributable to noncontrolling interests line of the consolidated statements of income. The partner’s interest in the net assets of the joint venture is reported in the noncontrolling interests line (a component of equity separate from Company equity) of the consolidated balance sheets. Prior to 2016, the Company and Nalco Company (a subsidiary of Ecolab Inc.) equally owned and controlled TIORCO, LLC, a joint venture operated out of Denver, Colorado. In October 2015, the Company and Nalco Company made the decision to dissolve TIORCO, LLC. See Note 24 for information regarding the dissolution of the joint venture. Prior to the dissolution of the joint venture, the Company’s investment in TIORCO, LLC was accounted for using the equity method and was included in the other non-current assets line on the consolidated balance sheets. The Company’s share of joint venture’s net earnings was included in the loss from equity in joint ventures line of the consolidated statements of income. Cash and Cash Equivalents The Company considers all highly liquid investments with purchased maturities of three months or less to be cash equivalents. At December 31, 2016, the Company’s cash and cash equivalents totaled $225.7 million including $38.6 million in two separate money market funds, each of which was rated AAA by Standard and Poor’s and Aaa by Moody’s. Cash in U.S. demand deposit accounts totaled $88.9 million and cash of the Company’s non-U.S. subsidiaries held outside the U.S. totaled $98.2 million as of December 31, 2016. Receivables and Credit Risk Receivables are stated net of allowances for doubtful accounts and other allowances and primarily include trade receivables from customers, as well as nontrade receivables from suppliers, governmental tax agencies and others. The Company is exposed to credit risk on accounts receivable balances. This risk is mitigated by the Company’s large, diverse customer base, which is dispersed over various geographic regions and industrial sectors. No single customer comprised more than 10 percent of the Company’s consolidated net sales in 2016, 2015 or 2014. The Company maintains allowances for potential credit losses. Specific customer allowances are recorded when a review of customer creditworthiness and current economic conditions indicate that collection is doubtful. In addition, the Company maintains a general allowance as a percentage of total trade receivables. The general allowance percentage is periodically reviewed and adjusted based on historical bad debt losses of the Company. The Company also maintains other customer allowances that occur in the normal course of business. Such allowances are based on historical averages and trade receivable levels. The following is an analysis of the allowance for doubtful accounts and other accounts receivable allowances for the years ended December 31, 2016, 2015 and 2014: (In thousands) 2016 2015 2014 Balance at January 1 $ 8,046 $ 10,011 $ 5,945 Provision charged to income 1,917 1,106 4,625 Accounts written off, net of recoveries (208) (3,071 ) (559 ) Balance at December 31 $ 9,755 $ 8,046 $ 10,011 The 2014 provision charged to income included a $2,388,000 bad debt allowance for a major Polymer customer that filed for protection under Chapter 11 of the U.S. Bankruptcy Code in September 2014. Also included in the 2014 provision charged to income were additional allowances for certain high risk accounts and for general reserves. The accounts written off for 2015 included the write-off of the Polymer customer’s uncollectible receivable balance. Inventories Inventories are valued at cost, which is not in excess of market value, and include material, labor and plant overhead costs. The last-in, first-out (LIFO) method is used to determine the cost of the Company’s U.S. inventories. The first-in, first-out (FIFO) method is used for all other inventories. Inventories priced at LIFO as of December 31, 2016 and 2015, accounted for 66 and 72 Property, Plant and Equipment Depreciation of property, plant and equipment is provided on a straight-line basis over the estimated useful lives of the assets. Lives used for calculating depreciation are generally 30 years for buildings and 15 years for building improvements. For assets classified as machinery and equipment, lives generally used for calculating depreciation expense range from 10 to 15 years for manufacturing equipment, five to 10 years for furniture and fixtures, three to five years for vehicles and three to 10 years for computer equipment and software. Manufacturing of chemicals is capital intensive with a large majority of the assets included in machinery and equipment representing manufacturing equipment. Major renewals and betterments are capitalized in the property accounts, while maintenance and repairs ($51,530,000, $52,549,000, and $55,923,000 Included in the computer equipment and software component of machinery and equipment are costs related to the acquisition and development of internal-use software. Capitalized costs for internal-use software include external direct costs of materials and services consumed in obtaining and developing the software. For development projects where major internal resources are committed, payroll and payroll-related costs incurred during the application development phase of the project are also capitalized. The capitalized costs are amortized over the useful lives of the software, which are generally three to 10 years. Costs incurred in the preliminary project phase are expensed. Interest charges on borrowings applicable to major construction projects are capitalized. Property, plant and equipment assets are tested for impairment when events indicate that impairment may have occurred. See Note 22 for 2016 and 2014 asset impairments. Fair Value Measurements GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Furthermore, GAAP establishes a framework, in the form of a three-level hierarchy, for measuring fair value that prioritizes the inputs to valuation techniques used to measure fair value. The following describes the hierarchy levels: Level 1 - quoted prices in active markets for identical assets and liabilities. Level 2 - inputs other than quoted prices included within Level 1 that are directly or indirectly observable for the asset or liability, such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 - unobservable inputs which reflect the entity’s own assumptions about the assumptions market participants use in pricing the assets and liabilities. The Company applies the fair value measurement provisions of GAAP to any of its financial assets and liabilities that are carried at fair value on the consolidated balance sheets (see Note 2), its outstanding debt for disclosure purposes (also Note 2) and its pension plan assets (see Note 13). The Company also applies the fair value measurement requirements to nonrecurring fair value measurements of nonfinancial assets and liabilities recorded in conjunction with business combinations and as part of impairment reviews for goodwill and other long-lived assets. Revenue Recognition Revenue is recognized upon shipment of goods to customers, at which time title and risk of loss pass to the customer. For arrangements where the Company consigns product to a customer location, revenue is recognized when the customer uses the inventory. The Company records shipping and handling billed to a customer in a sales transaction as revenue. Costs incurred for shipping and handling are reported in cost of sales. Volume discounts due customers are estimated and recorded in the same period as the sales to which the discounts relate and reported as reductions of revenue in the consolidated statements of income. Cost of Sales Cost of sales comprises raw material costs (including inbound freight expense to deliver the raw materials), manufacturing plant labor expenses and various manufacturing overhead expenses, such as utility, maintenance, operating supply, amortization and manufacturing asset depreciation expenses. Cost of sales also includes outbound shipping and handling expenses, inter-plant transfer costs and warehouse expenses. Operating Expenses Selling expense comprises salary and the related fringe benefit expenses for marketing and sales personnel and operating costs, such as outside agent commissions, automobile rental and travel-related expenses, which support the sales and marketing functions. Bad debt charges and any depreciation expenses related to marketing assets (e.g., computers) are also classified as selling expense. Administrative expense comprises salary and the related fringe benefit expenses and operating costs for the Company’s various administrative functions, which include information services, finance, legal, and human resources. Environmental remediation expenses are also classified as administrative expense. The Company’s research and development costs are expensed as incurred. These expenses are aimed at discovery and commercialization of new knowledge with the intent that such effort will be useful in developing a new product or in bringing about a significant improvement to an existing product or process. Total research and development expenses were $34,856,000, $30,315,000 and $27,236,000 in 2016, 2015 and 2014, respectively. The remainder of research, development and technical service expenses reflected on the consolidated statements of income relates to technical services, which include routine product testing, quality control and sales support service. Compensation expense or income related to the Company’s deferred compensation plans is presented in the deferred compensation expense (income) line in the Consolidated Statements of Income. Environmental Expenditures Environmental expenditures that relate to current operations are expensed in cost of sales. Expenditures that mitigate or prevent environmental contamination and that benefit future operations are capitalized as assets and depreciated on a straight-line basis over the estimated useful lives of the assets, which are typically 10 years. Estimated future expenditures that relate to an existing condition caused by past operations, and which do not contribute to current or future revenue generation, are recorded as liabilities, with the corresponding charge recorded in administrative expenses, when environmental assessments and/or remedial efforts are probable and the cost or range of possible costs can be reasonably estimated. When no amount within the range is a better estimate than any other amount, the minimum amount in the range is accrued. Some of the factors on which the Company bases its estimates include information provided by feasibility studies, potentially responsible party negotiations and the development of remedial action plans. Legal costs related to environmental matters are expensed as incurred (see Note 16 for environmental contingencies). Goodwill and Other Intangible Assets The Company’s intangible assets include patents, agreements not to compete, trademarks, customer lists and relationships, technological and manufacturing know-how, supply contracts and goodwill, all of which were acquired as part of business or product line acquisitions. Intangible assets other than goodwill are determined to have either finite or indefinite useful lives. The Company currently has no indefinite-life intangible assets. The values for intangible assets with finite lives are amortized over the useful lives of the assets. Currently, the useful lives for Company’s finite-lived intangible assets are as follows: patents – 10-15 years; non-compete agreements – five years; trademarks – 11 years; customer relationships – 10-13 years; supply contracts – four years and know-how – eight years. In addition, finite-life intangible assets are tested for impairment when events or changes in circumstances indicate that the carrying value of an intangible asset may not be recoverable. Goodwill is not amortized but is tested for impairment at least annually or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit to which goodwill relates below the reporting unit’s carrying value. See Note 4 for detailed information about goodwill and other intangible assets. Income Taxes The provision for income taxes is determined using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities. Deferred tax assets or liabilities are computed using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets and liabilities are expected to be realized or settled. Deferred tax assets and liabilities are adjusted for changes in tax rates or laws, and the effects of the changes are recorded in income in the period of enactment. Valuation allowances are recorded to reduce deferred tax assets when the Company determines that it is more likely than not that a tax benefit will not be realized. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by tax authorities. If the tax position meets the more-likely-than-not threshold, the tax benefit recognized in the consolidated financial statements is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon effective settlement. Unrecognized tax benefits, which are differences between the tax position taken on a tax return and the amounts recognized in the financial statements, are recorded either as an increase to a tax liability or as a decrease to an income tax receivable. The Company includes estimated interest and penalty amounts related to the unrecognized tax benefits in the tax provision. See Note 9 for detailed information about income taxes. Translation of Foreign Currencies For the Company’s consolidated foreign subsidiaries whose functional currency is the local foreign currency, assets and liabilities are translated into U.S. dollars at exchange rates in effect at year end and revenues and expenses are translated at average exchange rates for the year. Any resulting translation adjustments are included in the consolidated balance sheets in the accumulated other comprehensive loss line of stockholders’ equity. Gains or losses on foreign currency transactions are reflected in the other, net caption of the consolidated statements of income. The Company has one foreign subsidiary whose functional currency is the U.S. dollar. For this subsidiary, nonmonetary assets and liabilities are translated at historical rates, monetary assets and liabilities are translated at exchange rates in effect at year end, revenues and expenses are translated at average exchange rates for the year and translation gains and losses are included in the other, net caption of the consolidated statements of income. Stock-Based Compensation The Company grants stock options, stock awards (including performance-based stock awards) and stock appreciation rights (SARs) to certain employees under its incentive compensation plans. The Company calculates the fair values of stock options, stock awards and SARs on the date such instruments are granted. The fair values of the stock options and stock awards are then recognized as compensation expense over the vesting periods of the instruments. The Company’s SARs granted before 2015 settle in cash. The cash-settled SARs are accounted for as liabilities that must be re-measured at fair value at the end of each reporting period. Compensation expense for each reporting period is calculated as the period-to-period change (or portion of the change, depending on the proportion of the vesting period that has been completed at the reporting date) in the fair value of the cash-settled SARs. SARs granted subsequent to 2014 are settled in shares of Company common stock. Compensation expense for the stock-settled SARs is calculated in the same way as compensation expense for stock options. See ‘Recent Accounting Pronouncements’ of Note 1 for a discussion of the Company’s early adoption of the new accounting guidance for stock-based compensation. Also, see Note 11 for detailed information about the Company’s stock-based compensation. Earnings Per Share Basic earnings per share amounts are computed as net income attributable to the Company divided by the weighted-average number of common shares outstanding. Diluted earnings per share amounts are based on the weighted-average number of common shares outstanding plus the weighted-average of net common shares (under the treasury stock method) that would be outstanding assuming the exercise of outstanding stock options and stock-settled SARs, the vesting of unvested stock awards that have no performance or market condition and the issuance of contingent performance stock awards. See Note 18 for detailed information about the Company’s earnings per share calculations. Comprehensive Income and Accumulated Other Comprehensive Income Comprehensive income includes net income and all other non-owner changes in equity that are not reported in net income. Comprehensive income is disclosed in the consolidated statements of comprehensive income. Accumulated other comprehensive income (AOCI) is reported as a component of stockholders’ equity in the Company’s consolidated balance sheets. See Note 19 for detailed information regarding changes in the Company’s AOCI and reclassifications out of AOCI to income. Segment Reporting The Company reports financial and descriptive information about its reportable operating segments. Operating segments are components of the Company that have separate financial information that is regularly evaluated by the chief operating decision maker to assess segment performance and allocate resources. The Company discloses segment revenue, operating income, assets, capital expenditures and depreciation and amortization expenses. Enterprise-wide financial information about the geographic locations in which the Company earns revenues and holds assets is also disclosed (see Note 17). Derivative Instruments Derivative instruments are recognized in the consolidated balance sheets as either assets or liabilities measured at fair value. For derivative instruments that are not designated as hedging instruments, changes in the fair values of the derivative instruments are recognized currently in earnings. For derivative instruments designated as hedging instruments, depending on the nature of the hedge, changes in the fair values of the derivative instruments are either offset in earnings against changes in the fair values of the hedged items or recognized in AOCI until the hedged transaction is recognized in earnings. At the time a hedging relationship is designated, the Company establishes the method it will use for assessing the effectiveness of the hedge and the measurement approach for determining the ineffective aspect of the hedge. Company policy prohibits the use of derivative instruments for trading or speculative purposes. See Note 3 for further information regarding the Company’s use of derivatives. At December 31, 2016, the Company held open forward contracts for the purchase of 0.8 million dekatherms of natural gas in 2017 at a cost of $2,285,000. The Company uses forward contracts to minimize its exposure to volatile natural gas prices. Because the Company anticipates taking delivery of the natural gas for use in its operations, the forward contracts qualify for the normal purchase exception provided under U.S. GAAP for derivative instruments. The Company has elected the exception for such contracts. As a result, the forward contracts are not accounted for as derivative instruments. The cost of natural gas is charged to expense at the time the natural gas is delivered and used. Recent Accounting Pronouncements Accounting Guidance Adopted in the Quarter Ended December 31, 2016 In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-9, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting The Company elected to early-adopt the guidance in ASU No. 2016-9 in the fourth quarter ended December 31, 2016, which required the Company to reflect adjustments arising from the adoption of the new guidance as of January 1, 2016, the beginning of the annual period that included the interim period of adoption. The primary impact of adoption was the recognition of excess tax benefits in the provision for income taxes rather than additional paid-in capital for all periods in fiscal year 2016. Additional amendments to the accounting for income taxes had no impact on retained earnings as of January 1, 2016, where the cumulative effect of these changes are required to be recorded, as all excess tax benefits had been previously recognized as a reduction of taxes payable. The Company has elected to continue to estimate forfeitures expected to occur to determine the amount of compensation cost to be recognized in each period. In addition to the foregoing, the Company elected to apply the presentation requirements for cash flows related to excess tax benefits retrospectively to all periods presented, which resulted in an increase to both net cash provided by operating activities and net cash used in financing activities of $442,000 and $640,000 for the years ended December 31, 2015 and 2014, respectively. The presentation requirements for cash flows related to employee taxes paid for withheld shares had no impact on the statements of cash flows since the Company has historically presented such payments as financing activities. Adoption of ASU No. 2016-9 resulted in the recognition of excess tax benefits in the Company’s provision for income taxes (i.e., a reduction in the tax provision) rather than additional paid-in capital of $2,025,000 for the year ended December 31, 2016. Adoption of the new guidance also affected the calculation of 2016 diluted earnings per share, as excess tax benefits, due to their inclusion in earnings, are now excluded from the calculation of assumed proceeds available to repurchase shares under the treasury stock method. Other Accounting Guidance In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-9, Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date In April 2015, the FASB issued ASU No. 2015-3, Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330), Simplifying the Measurement of Inventory In September 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805), Simplifying the Accounting for Measurement-Period Adjustments. In February 2016, the FASB issued ASU No. 2016-2, Leases (Topic 842) In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory In January 2017, the FASB issued ASU No. 2017-4, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 2. Fair Value Measurements The following were the financial instruments held by the Company at December 31, 2016 and 2015, and the methods and assumptions used to estimate the instruments’ fair values: Cash and cash equivalents Carrying value approximated fair value because of the short maturity of the instruments. Derivative assets and liabilities Derivative assets and liabilities included the foreign currency exchange and interest rate contracts discussed in Note 3. Fair value and carrying value were the same because the contracts were recorded at fair value. The fair values of the foreign currency contracts were calculated as the difference between the applicable forward foreign exchange rates at the reporting date and the contracted foreign exchange rates multiplied by the contracted notional amounts. The fair values of the interest rate swaps were calculated as the difference between the contracted swap rate and the current market replacement swap rate multiplied by the present value of one basis point for the notional amount of the contract. See the table that follows the financial instrument descriptions for the reported fair values of derivative assets and liabilities. Long-term investments Long-term investments included the mutual fund assets the Company held to fund a portion of its deferred compensation liabilities and all of its non-qualified supplemental executive defined contribution obligations (see the defined contribution plans section of Note 13). Fair value and carrying value were the same because the mutual fund assets were recorded at fair value in accordance with the FASB’s fair value option guidance. Fair values for the mutual funds were calculated using the published market price per unit at the reporting date multiplied by the number of units held at the reporting date. See the table that follows the financial instrument descriptions for the reported fair value of long-term investments. Debt obligations The fair value of debt with original maturities greater than one year comprised the combined present values of scheduled principal and interest payments for each of the various loans, individually discounted at rates equivalent to those which could be obtained by the Company for new debt issues with durations equal to the average life to maturity of each loan. The fair values of the remaining Company debt obligations approximated their carrying values due to the short-term nature of the debt. The Company’s fair value measurements for debt fall in level 2 of the fair value hierarchy. At December 31, 2016 and 2015, 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 $1,141,000 and $1,269,000 as of December 31, 2016 and 2015, respectively): (In thousands) December 31 2016 2015 Fair value $ 316,364 $ 331,183 Carrying value 318,154 332,623 The following tables present financial assets and liabilities measured on a recurring basis at fair value as of December 31, 2016 and 2015, and the level within the fair value hierarchy in which the fair value measurement falls: (In thousands) December 2016 Level 1 Level 2 Level 3 Mutual fund assets $ 24,055 $ 24,055 $ — $ — Derivative assets: Foreign currency contracts 453 — 453 — Total assets at fair value $ 24,508 $ 24,055 $ 453 $ — Derivative liabilities: Foreign currency contracts $ 469 $ — $ 469 $ — (In thousands) December 2015 Level 1 Level 2 Level 3 Mutual fund assets $ 20,910 $ 20,910 $ — $ — Derivative assets: Foreign currency contracts 112 — 112 — Total assets at fair value $ 21,022 $ 20,910 $ 112 $ — Derivative liabilities: Foreign currency contracts $ 305 $ — $ 305 $ — Interest rate contracts 53 — 53 — Total liabilities at fair value $ 358 $ — $ 358 $ — |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 3. Derivative Instruments The Company is exposed to certain risks relating to its ongoing business operations. The primary risk managed by the use of derivative instruments is foreign currency exchange risk. The Company holds forward foreign currency exchange contracts that are not designated as any type of accounting hedge as defined by U.S. generally accepted accounting principles. The Company uses these contracts to manage its exposure to exchange rate fluctuations on certain Company subsidiary cash, accounts receivable, accounts payable and other obligation balances that are denominated in currencies other than the entities’ functional currencies. The forward foreign exchange contracts are recognized on the balance sheet as either an asset or a liability measured at fair value. Gains and losses arising from recording the foreign exchange contracts at fair value are reported in earnings as offsets to the losses and gains reported in earnings arising from the re-measurement of the receivable and payable balances into the applicable functional currencies. At December 31, 2016 and 2015, the Company had open forward foreign currency exchange contracts, all with durations of one to three months, to buy or sell foreign currencies with a U.S. dollar equivalent of $33,372,000 and $31,194,000, respectively. The Company is exposed to volatility in short-term interest rates and, at times, mitigates certain portions of that risk by using interest rate swaps and designating such swaps as cash flow hedges. The interest rate swaps are recognized on the balance sheet as either an asset or a liability measured at fair value. Period-to-period changes in the fair value of interest rate swap hedges are recognized as gains or losses in AOCI, to the extent effective. As each interest rate swap hedge contract is settled, the corresponding gain or loss is reclassified out of AOCI into earnings in that settlement period. The Company held no interest rate contracts at December 31, 2016. The Company held an interest rate swap contract with a notional value of $ $3,724,000 at December 31, 2015. In the fourth quarter of 2016, the underlying loan that was hedged with the interest rate swap contract was paid in full, and the contract was terminated. The loss realized from the termination of the interest rate swap was immaterial. The fair values of the derivative instruments held by the Company on December 31, 2016, and December 31, 2015, are disclosed in Note 2. Derivative instrument gains and losses for the years ended December 31, 2016, 2015 and 2014, were immaterial. For amounts reclassified out of AOCI into earnings for the years ended December 31, 2016, 2015 and 2014, see Note 19. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 4. The changes in the carrying value of goodwill for the years ended December 31, 2016 and 2015, were as follows: (In thousands) Surfactants Segment Polymer Segment Specialty Products Segment Total 2016 2015 2016 2015 2016 2015 2016 2015 Balance as of January 1 Goodwill $ 8,869 $ 9,025 $ 5,380 $ 5,461 $ 483 $ 483 $ 14,732 $ 14,969 Accumulated impairment loss (3,467 ) (3,467 ) — — — — (3,467 ) (3,467 ) Goodwill, net 5,402 5,558 5,380 5,461 483 483 11,265 11,502 Goodwill acquired (a) 14,327 — — — — — 14,327 — Foreign currency translation (238 ) (156 ) (46 ) (81 ) — — (284 ) (237 ) Balance as of December 31 Goodwill 22,958 8,869 5,334 5,380 483 483 28,775 14,732 Accumulated impairment loss (3,467 ) (3,467 ) — — — — (3,467 ) (3,467 ) Goodwill, net $ 19,491 $ 5,402 $ 5,334 $ 5,380 $ 483 $ 483 $ 25,308 $ 11,265 (a) See Note 20 for information regarding the goodwill acquired in a business combination. The Company tests its goodwill balances for impairment in the second quarter of each calendar year. The 2016 and 2015 tests indicated no impairment. The following table presents the components of other intangible assets, all of which have finite lives, as of December 31, 2016 and 2015. The year-over-year changes in gross carrying values resulted from the 2016 acquisition disclosed in Note 20 and the effects of foreign currency translation. (In thousands) Gross Carrying Value Accumulated Amortization December 31 December 31 2016 2015 2016 2015 Other Intangible Assets: Patents $ 6,947 $ 6,947 $ 3,294 $ 2,696 Non-compete agreements (a) 461 $ — 15 $ — Trademarks 4,087 4,087 1,525 1,150 Customer lists and relationships (a) 12,238 8,026 3,337 2,621 Supply contract (a) 2,521 — 105 — Know-how (b) 8,043 8,245 3,682 2,881 Total $ 34,297 $ 27,305 $ 11,958 $ 9,348 (a) See Note 20 for information regarding the intangibles acquired in a business combination. (b) Know-how includes intellectual property rights covering proprietary information, written formulae, trade secrets or secret processes, inventions and developmental products (whether patentable or not), discoveries, improvements, compositions, manufacturing processes, manuals, specifications and technical data. Aggregate amortization expense for the years ended December 31, 2016, 2015 and 2014, was $2,845,000, $2,816,000 and $2,841,000, respectively. Estimated amortization expense for identifiable intangibles assets for each of the five succeeding fiscal years is as follows: (In thousands) For year ended 12/31/17 $ 3,604 For year ended 12/31/18 3,604 For year ended 12/31/19 3,604 For year ended 12/31/20 3,452 For year ended 12/31/21 2,737 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | 5. Inventories The composition of inventories was as follows: December 31 (In thousands) 2016 2015 Finished products $ 127,597 $ 124,481 Raw materials 46,066 45,943 Total inventories $ 173,663 $ 170,424 Inventories are primarily priced using the last-in, first-out (LIFO) inventory valuation method. If the first-in, first-out (FIFO) inventory valuation method had been used for all inventories, inventory balances would have been approximately $25,872,000 and $18,171,000 higher than reported at December 31, 2016 and 2015, respectively. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | 6. Debt Debt comprised the following at December 31, 2016 and 2015: (In thousands) Maturity Dates December 31, 2016 December 31, 2015 (1) Unsecured private placement notes 3.95% (net of unamortized debt issuance cost of $382 and $383 for 2016 and 2015, respectively) 2021-2027 $ 99,618 $ 99,617 3.86% (net of unamortized debt issuance cost of $390 and $440 for 2016 and 2015, respectively) 2019-2025 99,610 99,560 4.86% (net of unamortized debt issuance cost of $225 and $260 for 2016 and 2015, respectively) 2017-2023 64,775 64,740 5.88% (net of unamortized debt issuance cost of $116 and $140 for 2016 and 2015, respectively) 2017-2022 34,170 39,860 5.69% (net of unamortized debt issuance cost of $28 and $46 for 2016 and 2015, respectively) 2017-2018 11,400 17,096 Debt of foreign subsidiaries Unsecured bank debt, foreign currency 2017 432 4,810 Unsecured bank term loan, foreign currency 2021 — 3,724 Secured bank debt, foreign currency 2017 7,008 1,947 Total debt $ 317,013 $ 331,354 Less current maturities 28,154 18,806 Long-term debt $ 288,859 $ 312,548 (1) Certain balances have been reclassified from those originally presented at December 31, 2015, due to the Company’s January 1, 2016, adoption of the new U.S. GAAP guidance regarding the classification of debt issuance costs. See Note 1 for additional information regarding ASU No. 2015-3. The majority of the Company’s long-term debt financing is composed of unsecured private placement notes issued to insurance companies, totaling $310,714,000 as of December 31, 2016. These notes are denominated in U.S. dollars and have fixed interest rates ranging from 3.86 percent to 5.88 percent. At inception, these notes had final maturities of 12 to 13 years with remaining amortization scheduled from 2017 to 2027. The Company has a committed $125,000,000 multi-currency five-year revolving credit agreement with JPMorgan Chase Bank, N.A., as administrative agent, and four U.S. banks named as lenders thereunder. This unsecured facility is the Company’s primary source of short-term borrowings, which the Company may draw on as needed to finance certain acquisitions, working capital and for general corporate purposes. This facility is secured through July 10, 2019. As of December 31, 2016, the Company had outstanding letters of credit of $4,802,000 and no borrowings under this agreement with $120,198,000 remaining available. Loans under the credit agreement may be incurred, at the discretion of the Company, with terms to maturity of 1 to 180 days. The Company may choose from several interest rate options, including (1) LIBOR applicable to each currency plus spreads ranging from 0.975 percent to 1.525 percent, depending on the Company’s leverage ratio or (2) the prime rate plus zero percent to 0.525 percent, depending on the leverage ratio. The credit agreement requires the Company to pay a facility fee ranging from 0.150 percent to 0.350 percent, which also depends on the leverage ratio. The credit agreement requires the maintenance of certain financial ratios and compliance with certain other covenants that are similar to the Company’s existing debt agreements, including net worth, interest coverage and leverage financial covenants and limitations on restricted payments, indebtedness and liens. In addition to the unsecured private placement notes and the revolving credit facility, the Company’s foreign subsidiaries had $432,000 of unsecured debt and $7,008,000 of secured debt at December 31, 2016. The secured foreign debt is secured only by the assets of the respective entities. The Company’s loan agreements in the U.S. and Philippines 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 $157,606,000 and $119,891,000 at December 31, 2016, and 2015, respectively. Debt at December 31, 2016, matures as follows: $28,154,000 in 2017; $20,714,000 in 2018; $29,286,000 in 2019; $29,286,000 in 2020; $43,572,000 Net interest expense for the years ended December 31, 2016, 2015 and 2014, comprised the following: (In thousands) 2016 2015 2014 Interest expense $ 15,240 $ 15,488 $ 12,542 Interest income (1,247 ) (217 ) (262 ) 13,993 15,271 12,280 Capitalized interest (788 ) (738 ) (839 ) Interest expense, net $ 13,205 $ 14,533 $ 11,441 |
Leased Properties
Leased Properties | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Leased Properties | 7. Leased Properties The Company leases certain property and equipment (primarily transportation equipment, buildings and land) under operating leases, which are denominated in local currencies. Total rental expense was $8,595,000, $7,097,000 and $6,660,000 in 2016, 2015 and 2014, respectively. Consolidated Company minimum future rental payments under operating leases with initial or remaining noncancelable lease terms in excess of one year as of December 31, 2016, are: (In thousands) Year Amount 2017 $ 7,761 2018 6,413 2019 5,561 2020 4,879 2021 3,702 Subsequent to 2021 19,276 Total minimum future rental payments $ 47,592 |
Other, Net
Other, Net | 12 Months Ended |
Dec. 31, 2016 | |
Other Income And Expenses [Abstract] | |
Other, Net | 8. Other, Net Other, net in the consolidated statements of income included the following for the years ended December 31, 2016, 2015 and 2014: (In thousands) 2016 2015 2014 Foreign exchange gains (losses) $ (14 ) $ 686 $ (220 ) Investment income 690 877 1,269 Realized and unrealized gains on investments 152 21 241 Other, net $ 828 $ 1,584 $ 1,290 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. Income Taxes The provisions for taxes on income and the related income before taxes for the years ended December 31, 2016, 2015 and 2014, were as follows: (In thousands) 2016 2015 2014 Taxes on Income Federal Current $ 18,811 $ 7,697 $ 3,362 Deferred (3,192 ) 3,890 4,338 State Current 2,273 1,559 782 Deferred (1,171 ) (225 ) 643 Foreign Current 14,960 14,562 9,004 Deferred (4,063 ) (664 ) 325 Total $ 27,618 $ 26,819 $ 18,454 Income before Taxes Domestic $ 64,675 $ 48,721 $ 34,091 Foreign 49,141 54,135 41,444 Total $ 113,816 $ 102,856 $ 75,535 The variations between the effective and statutory U.S. federal income tax rates are summarized as follows: (In thousands) 2016 Amount % 2015 Amount % 2014 Amount % Federal income tax provision at statutory tax rate $ 39,836 35.0 $ 36,000 35.0 $ 26,437 35.0 State tax provision on income less applicable federal tax benefit 716 0.6 867 0.8 926 1.2 Foreign income taxed at different rates (6,325 ) (5.6 ) (5,060 ) (4.9 ) (5,416 ) (7.2 ) Unrecognized tax benefits 23 0.0 1,536 1.5 241 0.3 Domestic production activities deduction (1,633 ) (1.4 ) (884 ) (0.9 ) (312 ) (0.4 ) Nontaxable foreign interest income (2,030 ) (1.8 ) (2,106 ) (2.0 ) (2,435 ) (3.2 ) Stock based compensation, excess tax benefits (a ) (1,878 ) (1.7 ) — — — — U.S. tax credits (1,100 ) (1.0 ) (3,465 ) (3.4 ) (1,086 ) (1.4 ) Non-deductible expenses and other items, net (b ) 9 0.2 (69 ) 0.0 99 0.1 Total income tax provision $ 27,618 24.3 $ 26,819 26.1 $ 18,454 24.4 (a) Excess tax benefits related to employee share-based payment transactions recognized in 2016 resulting from early adoption of ASU No. 2016-9, as described in Note 1. There is no effect for 2014 and 2015 because the recognition of excess tax benefits in the tax provision is to be done only on a prospective basis, beginning with the year of adopting the new guidance. (b) Certain 2014 amounts have been reclassified to conform to the current year presentation. At December 31, 2016 and 2015, the tax effects of significant temporary differences representing deferred tax assets and liabilities were as follows: (In thousands) 2016 2015 Deferred Tax Liabilities: Depreciation $ (75,973 ) $ (69,975 ) Unrealized foreign exchange loss (631 ) (614 ) Other (2,756 ) (950 ) $ (79,360 ) $ (71,539 ) Deferred Tax Assets: Pensions $ 12,077 $ 16,698 Deferred revenue 940 1,377 Other accruals and reserves 20,590 17,171 Inventories 1,815 1,833 Legal and environmental accruals 11,503 9,303 Deferred compensation 24,485 17,828 Bad debt and rebate reserves 4,195 3,685 Subsidiaries net operating loss carryforwards 1,201 602 Tax credit carryforwards 1,599 1,120 $ 78,405 $ 69,617 Valuation Allowance $ (1,815 ) $ (1,443 ) Net Deferred Tax Liabilities $ (2,770 ) $ (3,365 ) Reconciliation to Consolidated Balance Sheet: Non-current deferred tax assets (in other non-current assets) 9,727 6,090 Non-current deferred tax liabilities (12,497 ) (9,455 ) Net Deferred Tax Liabilities $ (2,770 ) $ (3,365 ) Undistributed earnings of foreign subsidiaries and related companies that are deemed to be permanently reinvested amounted to $309,047,000 The Company has tax loss carryforwards of $4,655,000 (pretax) as of December 31, 2016, and $2,224,000 as of December 31, 2015, that are available for use by the Company between 2017 and 2024. The Company has tax credit carryforwards of $1,599,000 as of December 31, 2016, and $1,120,000 as of December 31, 2015, that are available for use by the Company between 2017 and 2026. At December 31, 2016, the Company had valuation allowances of $1,815,000, which were primarily attributable to deferred tax assets in China, India and the Philippines. The realization of deferred tax assets is dependent on the generation of sufficient taxable income in the appropriate tax jurisdictions. The Company believes that it is more likely than not that the related deferred tax assets will not be realized. As of December 31, 2016 and 2015, unrecognized tax benefits totaled $1,931,000 and $1,958,000, respectively. The amount of unrecognized tax benefits that, if recognized, would favorably affect the Company’s effective income tax rate in any future periods, net of the federal benefit on state issues, was approximately $1,921,000, $1,948,000 and $454,000 at December 31, 2016, 2015 and 2014, respectively. The Company believes it is reasonably possible that the amount of unrecognized tax benefits related to its current uncertain tax positions could decrease by a range of approximately $0 to $1,500,000 over the next 12 months as a result of ongoing audits. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. In 2016, the Company recognized net interest and penalty expense of $9,000 The Company files income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. The Company is not subject to U.S. federal income tax examinations by tax authorities for years before 2011. In addition, 2013 is no longer subject to U.S. federal income tax examinations. Some foreign jurisdictions and various U.S. states jurisdictions may be subject to examination back to 2010. During 2016, the Internal Revenue Service started its audit of the 2011 and 2012 tax years. As of December 31, 2016, these audits were still open and the Company had not been notified of any significant proposed adjustments. Below are reconciliations of the January 1 and December 31 balances of unrecognized tax benefits for 2016, 2015 and 2014: (In thousands) 2016 2015 2014 Unrecognized tax benefits, opening balance $ 1,958 $ 464 $ 240 Gross increases – tax positions in prior period — 1,526 — Gross increases – current period tax positions 35 29 261 Foreign currency translation (43 ) (37 ) (13 ) Lapse of statute of limitations (19 ) (24 ) (24 ) Unrecognized tax benefits, ending balance $ 1,931 $ 1,958 $ 464 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | 10. Stockholders’ Equity At December 31, 2016 and 2015, treasury stock consisted of 3,470,084 shares and 3,428,541 shares of common stock, respectively. During 2016, 43,835 shares of Company common stock were purchased in the open market, and 5,295 |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation | 11. Stock-based Compensation On December 31, 2016, the Company had stock options and stock awards outstanding under its 2006 Incentive Compensation Plan (2006 Plan) and stock options, stock awards and SARs under its 2011 Incentive Compensation Plan (2011 Plan). Stock options, stock awards and SARs are currently granted to Company executives and other key employees. No further options or awards may be granted under the 2006 Plan. The 2011 Plan authorized the award of 2,600,000 shares of the Company’s common stock for stock options, SARs and stock awards. At December 31, 2016, there were 1,217,210 shares available for grant under the 2011 Plan. Compensation expense (income) recorded in the consolidated statements of income for all plans was $12,618,000, $4,374,000 and $(69,000) for the years ended December 31, 2016, 2015 and 2014, respectively. The increase in stock-based compensation from year to year was primarily due to the increase in compensation related to SARs and performance awards. Due to an increase in the market value of Company common stock (from $49.69 at December 31, 2015 to $81.48 at December 31, 2016), the fair value of SARs increased, resulting in an increase of the Company’s SARs liability. Performance awards stock-based compensation expenses increased between years due to management’s assessment that the profitability metrics for certain grants would be achieved at greater levels than previously estimated. The total income tax benefit (expense) recognized in the income statement for share-based compensation arrangements was $4,761,000, $1,654,000 Stock Options Under all plans, stock option awards are granted with an exercise price equal to the market price of the Company’s stock at the date of grant. The market price is defined and calculated as the average of the opening and closing prices for Company common stock on the grant date as reported in the New York Stock Exchange – Composite Transactions. Stock option awards outstanding at December 31, 2016, generally vest based on two years of continuous service and have 8- to 10-year contractual terms. The fair value of each option award was estimated on the date of grant using the Black-Scholes option valuation model incorporating the weighted-average assumptions noted in the following table. Expected volatility is based on the historical volatility of the Company’s stock. The Company also uses historical data to estimate the expected term of options granted. The risk-free rate is the U.S. Treasury note rate that corresponds to the expected option term at the date of grant. The following are the weighted-average assumptions used to calculate the grant-date fair values of stock option awards granted in the years ended December 31, 2016, 2015 and 2014: For the Years Ended December 31 2016 2015 2014 Expected dividend yield 1.45% 1.53% 1.77% Expected volatility 35.62% 40.32% 42.04% Expected term 7.3 years 7.3 years 7.3 years Risk-free interest rate 1.52% 1.96% 2.18% A summary of stock option activity for the year ended December 31, 2016 is presented below: Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic ($000) Options Outstanding at January 1, 2016 507,084 $ 36.57 Granted 103,709 44.03 Exercised (167,675 ) 23.95 Forfeited (6,992 ) 45.36 Outstanding at December 31, 2016 436,126 42.99 5.80 $ 16,785 Vested or expected to vest at December 31, 2016 432,181 42.68 5.86 13,022 Exercisable at December 31, 2016 258,093 43.12 3.82 9,900 The weighted-average grant-date fair values of options awarded during the years ended December 31, 2016, 2015 and 2014, were $14.70, $15.59 and $23.77, respectively. The total intrinsic values of options exercised during the years ended December 31, 2016, 2015, and 2014 were $6,620,000, $1,426,000, and $2,071,000, respectively. As of December 31, 2016, the total unrecognized compensation cost for unvested stock options was $895,000. That cost is expected to be recognized over a weighted-average period of 1.1 years. Cash received from stock option exercises under the Company’s stock option plans for the years ended December 31, 2016, 2015, and 2014 was $4,017,000, $777,000 and $1,754,000, respectively. The actual tax benefit realized for the tax deductions from stock option exercises totaled $1,899,000, $351,000, and $568,000 for the years ended December 31, 2016, 2015 and 2014, respectively. Stock Awards In 2014, 2015, and 2016, the Company granted stock awards under the 2011 Plan. Most Company stock awards are granted in the form of performance awards. The performance stock awards vest only upon the Company’s achievement of certain Board of Director approved levels of financial performance by the end of specified measurement periods. The number of Company shares of common stock ultimately distributed, if any, is contingent upon the Company’s actual financial performance attained by the end of the measurement period relative to the Board of Director approved targets. The fair value of performance stock awards equals the grant-date market price of the Company’s common stock, discounted for the estimated amount of dividends that would not be received during the measurement period. Compensation expense is recorded each reporting period based on the probable number of awards that will ultimately vest given the projected level of financial performance. If at the end of the measurement period the performance objectives are not met, no compensation cost is recognized and any compensation expense recorded in prior periods is reversed. Periodically, the Company also grants stock awards that have no performance conditions associated with their vesting. These stock awards vest based on the service time established for the given grant. A summary of stock award activity for the year ended December 31, 2016, is presented below: Shares Weighted-Average Grant Date Fair Value Stock Awards Unvested at January 1, 2016 208,503 $ 46.55 Granted 142,242 41.81 Vested (32,319 ) 59.41 Forfeited (61,660 ) 53.05 Unvested at December 31, 2016 256,766 40.74 The weighted-average grant-date fair values of stock awards granted during the years ended December 31, 2016, 2015 and 2014, were $41.81, $39.11 and $59.52, respectively. As of December 31, 2016, under the current Company assumption as to the number of stock award shares that will vest at the measurement periods ended December 31, 2017 and 2018, there was $5,514,000 of unrecognized compensation cost for unvested stock awards. That cost is expected to be recognized over a period of 1.7 years. SARs At December 31, 2016, the Company had both cash-settled and Company stock-settled SARs outstanding. SARs granted prior to 2015 are cash-settled, and SARs granted after 2014 are stock-settled. SARs outstanding at December 31, 2016, cliff vest after two years of continuous service and expire ten years from the grant date. Upon the exercise of a SARs award, a participant receives in cash (for cash-settled SARs) or Company common stock (for stock-settled SARs) an amount that equals or shares of Company stock that are valued at the excess of the fair market value of a share of Company common stock at the date of exercise over the fair market value of a share of Company common stock at the date of grant (the exercise price). Cash-settled SARs are accounted for as liabilities that must be re-measured at fair value at the end of every reporting period until settlement. Compensation expense for each reporting period is based on the period-to-period change (or portion of the change, depending on the proportion of the vesting period that has been completed at the reporting date) in the fair value of the SARs. Compensation expense for stock-settled SARs is based on the grant-date value of the awards allocated over the proportion of the vesting period that has been completed at the reporting date. Because stock-settled SARs are considered equity instruments, they are not re-measured at fair value at the end of each reporting period. The following is a summary of SARs activity for the year ended December 31, 2016: Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value ($000) SARs Outstanding at January 1, 2016 389,955 $ 50.30 Granted 215,288 43.95 Exercised (27,596 ) 54.17 Forfeited (24,065 ) 34.58 Outstanding at December 31, 2016 553,582 47.81 7.94 $ 18,642 The weighted-average grant-date fair values of SARs granted during the years 2016, 2015 and 2014 were $14.69, $15.60 As of December 31, 2016 and 2015, the liability for cash-settled SARs recorded on the consolidated balance sheet (non-current liabilities) was $5,832,000 and $2,593,000, respectively. At December 31, 2016, there was $1,859,000 of total unrecognized compensation cost related to all unvested SARs. That cost is to be recognized over a weighted-average period of 1.1 years. In general, it is the Company’s policy to issue new shares of its common stock upon the exercise of stock options and stock-settled SARs or the vesting of stock awards. |
Deferred Compensation
Deferred Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Compensation Related Costs [Abstract] | |
Deferred Compensation | 12. Deferred Compensation The Company sponsors deferred compensation plans that allow management employees to defer receipt of their annual bonuses and outside directors to defer receipt of their fees until retirement, departure from the Company or as otherwise elected. Compensation expense and the related deferred compensation obligation are recorded when the underlying compensation is earned. Over time, the deferred obligation may increase or decrease based on the performance results of investment options chosen by the plan participants. The investment options include Company common stock and a limited selection of mutual funds. The Company maintains sufficient shares of treasury stock to cover the equivalent number of shares that result from participants elections of the Company common stock investment option. As a result, the Company must periodically purchase its common shares in the open market. The Company purchases shares of the applicable mutual funds to fund the portion of its deferred compensation liabilities tied to such investments. Some plan distributions may be made in cash or Company common stock at the option of the participant. Other plan distributions can only be made in Company common stock. For deferred compensation obligations that may be settled in cash or Company common stock at the option of the participant, the Company must record appreciation in the market values of the investment choices made by participants as additional compensation expense. Conversely, declines in the market values of the investment choices reduce compensation expense. Increases and decreases of compensation expense that result from fluctuations in the underlying investments are recorded as part of operating expenses in the consolidated statements of income. The additional compensation expense or income resulting from the changes in the market values and earnings of the selected investment options was $16,805,000 expense in 2016, $6,500,000 expense in 2015 and $11,903,000 income in 2014. The increase in expense between 2016 and 2015 was primarily attributable to an increase in the market value of the Company’s common stock. The obligations that must be settled only in Company common stock are treated as equity instruments; therefore, fluctuations in the market price of the underlying Company stock do not affect earnings. The Company’s deferred compensation liability was $60,328,000 and $43,988,000 at December 31, 2016 and 2015, respectively. |
Postretirement Benefit Plans
Postretirement Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
Postretirement Benefit Plans | 13. Postretirement Benefit Plans Defined Benefit 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 various U.S. defined benefit pension plans were amended in 2005-2008 to freeze the plans by stopping the accrual of service benefits. The U.K. defined benefit pension plan was frozen in 2006. Benefits earned through the freeze dates are available to participants when they retire, in accordance with the terms of the plans. The Company established defined contribution plans to replace the frozen defined benefit pension plans. Obligations and Funded Status at December 31 (In thousands) United States United Kingdom 2016 2015 2016 2015 Change in benefit obligation Benefit obligation at beginning of year $ 160,789 $ 169,407 $ 19,950 $ 22,983 Interest cost 6,934 6,815 733 789 Actuarial (gain) loss 1,538 (9,315 ) 5,614 (1,763 ) Benefits paid (6,534 ) (6,118 ) (513 ) (891 ) Foreign exchange impact — — (3,750 ) (1,168 ) Benefit obligation at end of year $ 162,727 $ 160,789 $ 22,034 $ 19,950 (In thousands) United States United Kingdom 2016 2015 2016 2015 Change in plan assets Fair value of plan assets at beginning of year $ 121,835 $ 126,369 $ 21,425 $ 22,858 Actual return on plan assets 21,612 1,374 2,758 72 Employer contributions 179 210 378 605 Benefits paid (6,534 ) (6,118 ) (513 ) (891 ) Foreign exchange impact — — (3,712 ) (1,219 ) Fair value of plan assets at end of year $ 137,092 $ 121,835 $ 20,336 $ 21,425 Over (Under) funded status at end of year $ (25,635 ) $ (38,954 ) $ (1,698 ) $ 1,475 The amounts recognized in the consolidated balance sheets at December 31 consisted of (In thousands) United States United Kingdom 2016 2015 2016 2015 Non-current asset $ — $ — $ — $ 1,475 Current liability (166 ) (198 ) — — Non-current liability (25,469 ) (38,756 ) (1,698 ) — Net amount recognized $ (25,635 ) $ (38,954 ) $ (1,698 ) $ 1,475 The amounts recognized in accumulated other comprehensive income at December 31 consisted of (In thousands) United States United Kingdom 2016 2015 2016 2015 Net actuarial loss $ 40,022 $ 54,470 $ 7,443 $ 3,764 Below is information for pension plans with projected benefit obligations in excess of plan assets at December 31: (In thousands) United States United Kingdom 2016 2015 2016 2015 Projected benefit obligation $ 162,727 $ 160,789 $ 22,034 $ — Accumulated benefit obligation 162,727 160,789 22,034 — Fair value of plan assets 137,092 121,835 20,336 — Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income Net periodic benefit costs for the years ended December 31, 2016, 2015 and 2014, were as follows: (In thousands) United States United Kingdom 2016 2015 2014 2016 2015 2014 Interest cost $ 6,934 $ 6,815 $ 6,936 $ 733 $ 789 $ 964 Expected return on plan assets (9,012 ) (9,579 ) (9,523 ) (900 ) (1,054 ) (1,303 ) Amortization of net actuarial loss 3,386 4,534 2,687 77 179 — Net periodic benefit cost $ 1,308 $ 1,770 $ 100 $ (90 ) $ (86 ) $ (339 ) Other changes in plan assets and benefit obligations recognized in other comprehensive income for the years ended December 31, 2016, 2015 and 2014, were as follows: (In thousands) United States United Kingdom 2016 2015 2014 2016 2015 2014 Net actuarial (gain) loss $ (11,062 ) $ (1,110 ) $ 35,999 $ 3,756 $ (781 ) $ 2,577 Amortization of net actuarial loss (3,386 ) (4,534 ) (2,687 ) (77 ) (179 ) — Total recognized in other comprehensive income $ (14,448 ) $ (5,644 ) $ 33,312 $ 3,679 $ (960 ) $ 2,577 Total recognized in net periodic benefit cost and other comprehensive income $ (13,140 ) $ (3,874 ) $ 33,412 $ 3,589 $ (1,046 ) $ 2,238 The estimated amounts that will be reclassified from accumulated other comprehensive income into net periodic benefit cost in 2017 are as follows: (In thousands) United States United Kingdom Net actuarial loss $ 3,152 $ 365 Estimated Future Benefit Payments (In thousands) United States United Kingdom 2017 $ 7,065 $ 491 2018 7,550 500 2019 8,048 506 2020 8,502 517 2021 9,008 541 2022-2026 50,435 3,386 Assumptions The weighted-average assumptions used to determine benefit obligations at December 31 were as follows: United States United Kingdom 2016 2015 2016 2015 Discount rate 4.17 % 4.39 % 2.60 % 4.00 % The weighted-average assumptions used to determine net periodic benefit costs for years ended December 31 were as follows: United States United Kingdom 2016 2015 2014 2016 2015 2014 Discount rate 4.39 % 4.09 % 4.87 % 4.00 % 3.50 % 4.60 % Expected long-term return on plan assets 7.00 % 7.50 % 7.75 % 4.59 % 4.66 % 5.84 % I n addition to the above assumptions, the Company uses a market-related value of assets approach to calculate the expected return on plan assets component of U.S. net periodic benefit cost. The market-related value equals the fair value of plan assets with five-year smoothing of asset gains or losses. Asset gains are subtracted or losses added in the following way: 80 percent of the prior year’s gain or loss; 60 percent of the second preceding year’s gain or loss; 40 percent of the third preceding year’s gain or loss; and 20 percent of the fourth preceding year’s gain or loss. Gains or losses for the year are calculated as the difference between the expected fair value of assets and the actual fair value of assets. Investment Strategies and Policies U.S. Plans Plan assets are predominantly invested using active investment strategies, as compared to passive or index investing. An investment management firm hires and monitors underlying investment management firms for each asset category. Equity managers within each category cover a range of investment styles and approaches, including both active and passive, and are combined in a way that controls for capitalization, style biases, and country exposure versus benchmark indexes, while active managers focus primarily on stock selection to improve returns. Fixed income managers seek to reduce the volatility of the plan’s funded status by matching the duration with the plan’s liability while seeking to improve returns through security selection, sector allocation and yield curve management. Real estate uses public core real estate strategies, which provide stable and high levels of current income and enhanced core strategies, which seek slightly higher returns by emphasizing appreciation. Commodity managers are used to further diversify the portfolio and may serve as an inflation hedge and are benchmarked to a diversified commodities index. Risk is controlled through diversification among multiple asset categories, managers, styles, and securities. The investment management firm recommends asset allocations based on the time horizon available for investment, the nature of the plan cash flows and liabilities and other factors that affect risk tolerance. The asset allocation targets are approved by the Company’s Plan Committee. Risk is further controlled both at the manager and asset category level by assigning targets for risk versus investment returns. Allowable investment categories include: Equities: Common stocks of large, medium, and small companies, including both U.S. and non-U.S. based companies. The long-term target allocation for equities, excluding Company stock, is 34 percent. Fixed Income (Debt): Bonds or notes issued or guaranteed by the U.S. government, and to a lesser extent, by non-U.S. governments, or by their agencies or branches, mortgage-backed securities, including collateralized mortgage obligations, corporate bonds, municipal bonds and dollar-denominated debt securities issued in the U.S. by non-U.S. banks and corporations. A small percentage of the fixed income assets may be in debt securities that are below investment grade. The target allocation for fixed income is 35 percent. Real Estate: Public real estate funds using office, apartment, industrial, retail, and other property types. The target allocation for real estate is 4 percent. Commodities: Commodity funds that match the index using commodity-linked derivative instruments including swap agreements, commodity options, futures, options on futures and commodity-linked notes, while seeking to enhance overall returns through the use of fixed income securities. The target allocation for commodities is 2 percent. Employer Securities: The retirement plans also hold shares of the Company’s common stock, which are purchased or sold by the trustee from time to time, as directed by the Plan Committee. At the direction of the Plan Committee, the plans sold 56,894 common shares to the Company’s ESOP trust on February 23, 2016, and 39,360 common shares on February 18, 2015. The target allocation for employer securities is 25 percent. In addition to these primary investment types, excess cash may be invested in futures in order to efficiently achieve more fully invested portfolio positions. Otherwise, a small number of investment managers make limited use of derivatives, including futures contracts, options on futures and interest rate swaps in place of direct investment in securities to efficiently achieve equivalent market positions. Derivatives are not used to leverage portfolios. U.K. Plan The objective of the U.K. defined benefit pension fund investment strategy is to maximize the long-term rate of return on plan assets within a medium level of risk in order to minimize the cost of providing pension benefits. To that end, the plan assets are invested in an actively managed pooled fund of funds that diversifies its holdings among equity securities, debt securities, property and cash. Essentially, the plan is to hold equity instruments to back the benefits of participants yet to retire and bonds and cash to back current pensioners. Although there are no formal target allocations for the plan assets, the fund will generally be heavily invested in equity securities. Equity securities are selected from U.K., European, U.S. and emerging market companies. Bonds include U.K. and other countries’ government notes and corporate debt of U.K and non-U.K. companies. There are no specific prohibited investments, but the current managed fund will not allocate assets to derivatives or other financial hedging instruments. Plan trustees meet regularly with the fund manager to assess the fund’s performance and to reassess investment strategy. At December 31, 2016, the pension asset allocation was 58 percent equities, 30 percent fixed income, eight percent insurance contracts, three percent real estate and one percent cash. Included in plan assets are insurance contracts purchased by the plan trustees to provide pension payments for specific retirees. In past years, at the time a plan participant retired, the plan trustee would periodically purchase insurance contracts to cover the future payments due the retiree. This practice is no longer followed. The contracts are revocable, and the related plan obligations are not considered settled. Therefore, the plan assets and obligations include the insured amounts. Plan Assets U.S. Plans The Company’s asset allocations for its U.S. pension plans at December 31, 2016 and 2015, by asset category, were as follows: December 31, 2016 (In thousands) Level 1 Level 2 Level 3 Total Cash and Cash Equivalents $ 3,633 $ 275 $ — $ 3,908 Equity Securities U.S. Equities 29,390 — — 29,390 Non-U.S. Equities 14,637 — — 14,637 Employer Securities 36,018 — — 36,018 Total Equities 80,045 — — 80,045 Fixed Income Securities U.S. Corporate Bonds — 28,278 — 28,278 U.S. Government and Agency Bonds 8,309 971 — 9,280 Other Bonds — 7,696 — 7,696 Total Fixed Income 8,309 36,945 — 45,254 Mutual Funds Real Estate 5,362 — — 5,362 Commodities 2,523 — — 2,523 Other — — — — Total Mutual Funds 7,885 — — 7,885 Total $ 99,872 $ 37,220 $ — $ 137,092 December 31, 2015 (In thousands) Level 1 Level 2 Level 3 Total Cash and Cash Equivalents $ — $ 1,989 $ — $ 1,989 Equity Securities U.S. Equities 33,076 — — 33,076 Non-U.S. Equities 10,630 — — 10,630 Employer Securities 24,792 — — 24,792 Total Equities 68,498 — — 68,498 Fixed Income Securities U.S. Corporate Bonds — 26,389 — 26,389 U.S. Government and Agency Bonds 365 9,371 — 9,736 Other Bonds — 7,378 — 7,378 Total Fixed Income 365 43,138 — 43,503 Mutual Funds Real Estate 5,222 — — 5,222 Commodities 1,481 — — 1,481 Other 1,142 — — 1,142 Total Mutual Funds 7,845 — — 7,845 Total $ 76,708 $ 45,127 $ — $ 121,835 Plan Asset Valuation Methodology Following is a description of the valuation methodologies used for plan assets measured at fair value. Individual equity securities, including employer securities, are valued by Standard & Poor’s Securities Evaluations as determined by quoted market prices on the New York Stock Exchange or other active markets. Both market pricing and future cash flow analysis may be used in the pricing process as follows: Level 1 – Equities represent the largest asset category and are valued according to the exchange-quoted market prices of the underlying investments. Level 1 fixed income securities are U.S. government securities and are valued according to quoted prices from active markets. Level 2 – Fixed income investments without equivalent trading exchanges are valued primarily through a technique known as “future cash flow approach” which is based on what bondholders can reasonably expect to receive based upon an issuer’s current financial condition. Pricing analysts prepare cash-flow forecasts and utilize one or two pricing models to arrive at an evaluated price. Evaluated bid modeling includes factors such as the interest rate on the coupon, maturity, rating, cash flow projections and other factors. Level 3 – no investments held during 2016 or 2015 were categorized as Level 3. U.K. Plan The Company’s asset allocations for its U.K. pension plans at December 31, 2016 and 2015, by asset category, were as follows: December 31, 2016 (In thousands) Level 1 Level 2 Level 3 Total Cash $ 243 $ — $ — $ 243 Equity Securities Pooled Pension Funds — 11,760 — 11,760 Fixed Income Pooled Pension Funds — 6,015 — 6,015 Real Estate Pooled Pension Funds — 559 — 559 Insurance Contracts — — 1,759 1,759 Total $ 243 $ 18,334 $ 1,759 $ 20,336 December 31, 2015 (In thousands) Level 1 Level 2 Level 3 Total Cash $ 833 $ — $ — $ 833 Equity Securities Pooled Pension Funds — 12,397 — 12,397 Fixed Income Pooled Pension Funds — 5,740 — 5,740 Real Estate Pooled Pension Funds — 486 — 486 Insurance Contracts — — 1,969 1,969 Total $ 833 $ 18,623 $ 1,969 $ 21,425 Units of each of the pooled funds are valued by the trustee based on quoted market prices of the underlying investments (the underlying assets are either exchange traded or have readily available markets). Fair value changes within asset categories for which fair value measurements use significant unobservable inputs (Level 3) were as follows during 2015 and 2016: (In thousands) Insurance Fair value, December 31, 2014 $ 2,241 Sale proceeds (benefit payments) (168 ) Change in unrealized gain 11 Foreign exchange impact (115 ) Fair value, December 31, 2015 $ 1,969 Sale proceeds (benefit payments) (144 ) Change in unrealized gain 265 Foreign exchange impact (331 ) Fair value, December 31, 2016 $ 1,759 Long-term Rate of Return for Plan Assets U.S. Plans The overall expected long-term rate of return on assets of 7.00 percent that was used to develop the 2016 pension expense is based on plan asset allocation, capital markets forecasts and expected benefits of active investment management. For fixed income, the expected return is 4.62 percent. This assumption includes the yield on the five-year zero-coupon U.S. Treasury bond as the base rate along with historical data from the U.S. Treasury yield curve. For equities, the expected return is 7.32 percent for U.S. and international equities. This return is based on a blended average of three different statistical models that each incorporates multiple factors including, for example, inflation, Gross Domestic Product and the Fed Funds Target Rate. For real estate, the expected return is 4.80 percent. For commodities, the expected return is 2.20 percent. The overall investment return forecast reflects the target allocations and the capital markets forecasts for each asset category, plus a premium for active asset management expected over the long-term. U.K. Plan The overall expected long-term return on plan assets is a weighted-average of the expected long-term returns for equity securities, debt securities and other assets. The redemption yield at the measurement date on U.K. government fixed interest bonds and the yield on corporate bonds are used as proxies for the return on the debt portfolio. The returns for equities and property are estimated as a premium of 3.0 percent added to the risk-free rate. Cash is assumed to have a long-term return of 4.0 percent. Other Defined Benefit Plans The Company maintains funded and unfunded defined benefit plans in other foreign locations. The liabilities and expenses associated with these plans, individually and collectively, are not material to the Company’s consolidated financial statements. Discount rates for these plans are determined based on local interest rates and plan participant data. Cash Flows As a result of pension funding relief included in the Highway and Transportation Funding Act of 2014, the Company expects to make no 2017 contributions to the funded U.S. qualified defined benefit plans. $166,000 is expected to be paid in 2017 related to the unfunded non-qualified U.S. pension plans. The Company expects to contribute $300,000 to the U.K. defined benefit plan in 2017. Defined Contribution Plans The Company sponsors retirement savings defined contribution plans that cover U.S. and U.K. employees. The Company also sponsors a profit sharing plan for its U.S. employees. Profit sharing contributions are determined each year using a formula that is applied to Company earnings. The contributions, which are made partly in cash and partly in Company common stock, are allocated to participant accounts on the basis of participant base earnings. The retirement savings and profit sharing defined contribution plans each include a qualified plan and a non-qualified supplemental executive plan. Defined contribution plan expenses for the Company’s retirement savings plans and profit sharing plan were as follows: (In thousands) 2016 2015 2014 Retirement savings plans $ 4,902 $ 4,644 $ 4,565 Profit sharing plan 6,230 4,972 3,619 Total $ 11,132 $ 9,616 $ 8,184 The Company has a rabbi trust to fund the obligations of its non-qualified supplemental executive defined contribution plans (supplemental plans). The trust comprises various mutual fund investments selected by the participants of the supplemental plans. In accordance with the accounting guidance for rabbi trust arrangements, the assets of the trust and the obligations of the supplemental plans are reported on the Company’s consolidated balance sheet. 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 income statement. The supplemental plan liabilities increase (i.e., supplemental plan expense is recognized) when the value of the trust assets appreciates and decrease (i.e., supplemental plan income is recognized) when the value of the trust assets declines. At December 31, 2016 and 2015, the trust asset balances were $1,692,000 and $1,762,000, respectively, and the supplemental plan liability balances were $1,767,000 and $1,827,000, respectively. The differences between the trust asset balances and the supplemental liability balances were due to estimated liabilities that were not funded until after the end of the year when the actual liabilities were determined. In addition to the Company sponsored profit sharing plan, certain foreign locations are required by law to make profit sharing contributions to employees based on statutory formulas. For the years ended December 31, 2016, 2015 and 2014, the Company recognized $290,000, $1,375,000 and $145,000, respectively, of statutory profit sharing expense. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Payables And Accruals [Abstract] | |
Accrued Liabilities | 14. Accrued Liabilities The composition of accrued liabilities was as follows: December 31 (In thousands) 2016 2015 Accrued payroll and benefits $ 66,575 $ 53,691 Accrued customer rebates 18,553 16,561 Other accrued liabilities 25,667 25,581 Total accrued liabilities $ 110,795 $ 95,833 The year-over-year change in the accruals for payroll and benefits was largely attributable to increased liabilities for short-term incentive-based compensation. |
Other Non-Current Liabilities
Other Non-Current Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Other Non-Current Liabilities | 15. Other Non-Current Liabilities The composition of other non-current liabilities was as follows: December 31 (In thousands) 2016 2015 Deferred revenue $ 1,863 $ 2,988 Environmental and legal matters 22,703 18,258 Deferred compensation liability 53,133 43,042 Pension liability 29,494 41,252 Other non-current liabilities 12,160 9,221 Total other non-current liabilities $ 119,353 $ 114,761 |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingencies | 16. Contingencies There are a variety of legal proceedings pending or threatened against the Company. Some of these proceedings may result in fines, penalties, judgments or costs being assessed against the Company at some future time. The Company’s operations are subject to extensive local, state and federal regulations, including the U.S. Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA) and the Superfund amendments of 1986 (Superfund). Over the years, the Company has received requests for information related to or has been named by government authorities as a PRP at a number of waste disposal and manufacturing sites where cleanup costs have been or may be incurred under CERCLA and similar state statutes. In addition, damages are being claimed against the Company in general liability actions for alleged personal injury or property damage in the case of some disposal and plant sites. The Company believes that it has made adequate provisions for the costs it may incur with respect to these sites. As of December 31, 2016, the Company estimated a range of possible environmental and legal losses of $25.7 For certain sites, the Company has responded to information requests made by federal, state or local government agencies but has received no response confirming or denying the Company’s stated positions. As such, estimates of the total costs, or range of possible costs, of remediation, if any, or the Company’s share of such costs, if any, cannot be determined with respect to these sites. Consequently, the Company is unable to predict the effect thereof on the Company’s financial position, cash flows and results of operations. Given the information available, management believes the Company has no liability at these sites. However, in the event of one or more adverse determinations with respect to such sites in any annual or interim period, the effect on the Company’s cash flows and results of operations for those periods could be material. Based upon the Company’s present knowledge with respect to its involvement at these sites, the possibility of other viable entities’ responsibilities for cleanup, and the extended period over which any costs would be incurred, the Company believes that these matters, individually and in the aggregate, will not have a material effect on the Company’s financial position. Following are summaries of the major contingencies at December 31, 2016: Maywood, New Jersey Site The Company’s property in Maywood, New Jersey and property formerly owned by the Company adjacent to its current site and other nearby properties (Maywood site) were listed on the National Priorities List in September 1993 pursuant to the provisions of CERCLA because of certain alleged chemical contamination. Pursuant to an Administrative Order on Consent entered into between USEPA and the Company for property formerly owned by the Company, and the issuance of an order by USEPA to the Company for property currently owned by the Company, the Company has completed various Remedial Investigation Feasibility Studies (RI/FS), and on September 24, 2014, USEPA issued its Record of Decision (“ROD”) for chemically-contaminated soil. USEPA has not yet issued a ROD for chemically-contaminated groundwater for Maywood site. Based on the most current information available, the Company believes its recorded liability represents its best estimate of the cost of remediation for the Maywood site. The best estimate of the cost of remediation for the Maywood site could change as the Company continues to hold discussions with USEPA, as the design of the remedial action progresses, if a groundwater ROD is issued or if other PRPs are identified. The ultimate amount for which the Company is liable could differ from the Company’s current recorded liability. In April 2015, the Company entered into an Administrative Settlement Agreement and Administrative Order on Consent with USEPA which requires payment of certain costs and performance of certain investigative and design work for chemically-contaminated soil. Based on the Company’s review and analysis of this order, no changes to the Company’s current recorded liability for claims associated with soil remediation of chemical contamination were required. In addition, under the terms of a settlement agreement reached on November 12, 2004, the United States Department of Justice and the Company agreed to fulfill the terms of a Cooperative Agreement reached in 1985 under which the United States will take title to and responsibility for radioactive waste removal at the Maywood site, including past and future remediation costs incurred by the United States. As such, the Company recorded no liability related to this settlement agreement. D’Imperio Property Site During the mid-1970’s, Jerome Lightman and the Lightman Drum Company disposed of hazardous substances at several sites in New Jersey. The Company was named as a PRP in a lawsuit in the U.S. District court for the district of New Jersey that involved the D’Imperio Property Site located in New Jersey. In 2016, the PRPs were provided with updated remediation cost estimates which were considered in the Company’s determination of its range of estimated possible losses and liability balance. The changes in range of possible losses and liability balance were immaterial. Remediation work is continuing at this site. Based on current information, the Company believes that its recorded liability represents its best estimate of the cost of remediation for the D’Imperio site. Depending on the ultimate cost of the remediation at this site, the amount for which the Company is liable could differ from the current estimates. Wilmington Site The Company is currently contractually obligated to contribute to the response costs associated with the Company’s formerly-owned site at 51 Eames Street, Wilmington, Massachusetts. Remediation at this site is being managed by its current owner to whom the Company sold the property in 1980. Under the agreement, once total site remediation costs exceed certain levels, the Company is obligated to contribute up to five percent of future response costs associated with this site with no limitation on the ultimate amount of contributions. The Company has paid the current owner $2.5 million for the Company’s portion of environmental response costs through December 31, 2016. The Company has recorded a liability for its portion of the estimated remediation costs for the site. Depending on the ultimate cost of the remediation at this site, the amount for which the Company is liable could differ from the current estimates. The Company and other prior owners also entered into an agreement in April 2004 waiving certain statute of limitations defenses for claims which may be filed by the Town of Wilmington, Massachusetts, in connection with this site. While the Company has denied any liability for any such claims, the Company agreed to this waiver while the parties continue to discuss the resolution of any potential claim which may be filed. The Company believes that based on current information it has adequate reserves for the claims related to this site. However, depending on the ultimate cost of the remediation at this site, the amount for which the Company is liable could differ from the current estimates. Other U.S. Sites Through the regular environmental monitoring of its plant production sites, the Company discovered levels of chemical contamination that were above thresholds allowed by law at two of its U.S plants. The Company voluntarily reported its results to the applicable state environmental agencies. As a result, the Company is required to perform self-remediation of the affected areas. In the fourth quarter of 2016, the Company recognized a charge for the estimated cost of remediating the sites. The charge was not material to the Company’s results of operations. Based on current information, the Company believes that its recorded liability for the remediation is adequate. However, actual costs could differ from current estimates. Mexico Value-Added Tax During a 2015 examination of the Company’s 2009 and 2010 Mexico subsidiary financial records, local tax authority auditors determined that the Company’s treatment of value-added tax (VAT) for purchase transactions with a certain vendor was incorrect. As a result, the tax authorities concluded that the Company owed past VAT from 2009 through 2010 along with assessed inflation, penalty and interest charges. In 2015, the Company recorded a liability and corresponding income statement charge for the VAT inflation, penalty and interest charges for 2009 through 2014. No exposure for 2015 existed as the Company remedied the underlying problem. The amount recorded in 2015 was not material to the Company’s results of operations. No charge was recorded for the past unpaid VAT because the Company believes the amount will be recoverable through the normal VAT process. In 2016, the Company reached agreement with Mexico’s tax authorities on the amount of inflation, penalty and interest charged for 2009 through 2014. No significant adjustments were required to the previously recorded liability as a result of these agreements. At December 31, 2016, the Company had no recorded liability for this issue. Additional charges could potentially be incurred by the Company if the amount of unpaid VAT related to this issue is not fully recovered through the normal VAT process. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting | 17. Segment Reporting The Company has three reportable segments: Surfactants, Polymers and Specialty Products. Each segment provides distinct products and requires separate management due to unique markets, technologies and production processes. Surfactants are used in a variety of consumer and industrial cleaning compounds as well as in agricultural products, lubricating ingredients, oil field chemicals and other specialized applications. Polymers are used primarily in plastics, building materials, refrigeration systems and CASE applications. Specialty Products are used in food, flavoring, nutritional supplement and pharmaceutical applications. The Company evaluates the performance of its segments and allocates resources based on operating income before interest expense, other income/expense items and income tax provision. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. The following is segment data for the three years ended December 31, 2016, 2015 and 2014: (In thousands) Surfactants Polymers Specialty Products Segment Totals 2016 Net sales $ 1,181,563 $ 498,826 $ 85,777 $ 1,766,166 Operating income 99,796 96,788 10,698 207,282 Assets 831,324 301,890 75,483 1,208,697 Capital expenditures 64,121 31,890 4,194 100,205 Depreciation and amortization expenses 48,643 20,275 4,204 73,122 2015 Net sales $ 1,205,849 $ 491,488 $ 78,830 $ 1,776,167 Operating income 104,080 80,942 4,397 189,419 Assets 758,524 293,790 72,604 1,124,918 Capital expenditures 79,171 31,309 6,387 116,867 Depreciation and amortization expenses 42,122 19,541 3,659 65,322 2014 Net sales $ 1,296,638 $ 550,966 $ 79,609 $ 1,927,213 Operating income 60,778 60,690 10,487 131,955 Assets 741,677 320,640 67,588 1,129,905 Capital expenditures 70,796 22,409 5,618 98,823 Depreciation and amortization expenses 41,483 18,433 2,792 62,708 Below are reconciliations of segment data to the consolidated financial statements: (In thousands) 2016 2015 2014 Operating income - segment totals $ 207,282 $ 189,419 $ 131,955 Business restructuring and asset impairments (a) (7,064 ) — (4,009 ) Unallocated corporate expenses (b) (74,025 ) (66,629 ) (37,252 ) Total operating income 126,193 122,790 90,694 Interest expense, net (13,205 ) (14,533 ) (11,441 ) Loss from equity in joint ventures — (6,985 ) (5,008 ) Other, net 828 1,584 1,290 Consolidated income before income taxes $ 113,816 $ 102,856 $ 75,535 Assets - segment totals $ 1,208,697 $ 1,124,918 $ 1,129,905 Unallocated corporate assets (c) (d) 145,193 113,474 32,109 Consolidated assets (d) $ 1,353,890 $ 1,238,392 $ 1,162,014 Capital expenditures - segment totals $ 100,205 $ 116,867 $ 98,823 Unallocated corporate expenditures 2,871 2,482 2,996 Consolidated capital expenditures $ 103,076 $ 119,349 $ 101,819 Depreciation and amortization expenses – segment totals $ 73,122 $ 65,322 $ 62,708 Unallocated corporate depreciation expenses 1,845 1,663 1,096 Consolidated depreciation and amortization expenses $ 74,967 $ 66,985 $ 63,804 (a) See Note 22 regarding business restructuring and asset impairment costs. (b) Unallocated corporate expenses primarily comprise corporate administrative expenses (e.g., corporate finance, legal, human resources, information systems, deferred compensation and environmental remediation) that are not included in segment operating income and not used to evaluate segment performance. (c) The changes in unallocated corporate assets between 2016, 2015 and 2014 were primarily attributable to changes in the balance of U.S. cash and cash equivalents, which are not allocated to segments. (d) The 2015 amounts in the noted line items have been changed from the amounts originally reported due to the reclassification of debt issuance costs pursuant to the Company’s adoption of ASU No. 2015-3. See Note 1 for further information. Below is certain Company-wide geographic data for the years ended December 31, 2016, 2015 and 2014: (In thousands) 2016 2015 2014 Net sales (a) United States $ 1,076,259 $ 1,069,526 $ 1,146,405 France 151,031 169,072 183,896 Poland 153,986 150,654 175,862 United Kingdom 86,458 89,757 103,696 Brazil 74,961 63,439 65,165 All other countries 223,471 233,719 252,189 Total $ 1,766,166 $ 1,776,167 $ 1,927,213 Long-lived assets (b) United States $ 411,023 $ 387,744 $ 360,921 Germany 27,475 30,268 36,156 Singapore 36,270 39,181 41,909 Brazil (c) 58,106 26,721 25,991 China 29,508 25,689 10,674 United Kingdom 20,309 22,943 23,040 All other countries 47,670 52,139 57,809 Total $ 630,361 $ 584,685 $ 556,500 (a) Net sales are attributed to countries based on the location of the Company facility making the sales. (b) Includes net property, plant and equipment, goodwill and other intangible assets. (c) The change between 2016 and 2015 was attributable to the acquisition described in Note 20. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 18. Earnings Per Share Below is the computation of basic and diluted earnings per share for the years ended December 31, 2016, 2015 and 2014 (see the discussion regarding the adoption of ASU No. 2016-9 and its effect on the calculation of 2016 diluted earnings per share in Note 1): (In thousands, except per share amounts) 2016 2015 2014 Computation of Basic Earnings per Share Net income attributable to Stepan Company $ 86,191 $ 75,968 $ 57,101 Weighted-average number of shares outstanding 22,793 22,730 22,758 Basic earnings per share $ 3.78 $ 3.34 $ 2.51 Computation of Diluted Earnings per Share Net income attributable to Stepan Company $ 86,191 $ 75,968 $ 57,101 Weighted-average number of shares outstanding 22,793 22,730 22,758 Add weighted-average net shares from assumed exercise of options (under treasury share method) ( a ) 159 118 148 Add weighted-average net shares related to unvested stock awards (under treasury share method) 6 3 11 Add weighted-average net shares from assumed exercise of SARs (under treasury share method) 68 1 ─ Add weighted-average contingently issuable net shares related to performance stock awards (under treasury share method) 68 6 ─ Weighted-average shares applicable to diluted earnings 23,094 22,858 22,917 Diluted earnings per share $ 3.73 $ 3.32 $ 2.49 (a ) Options to purchase 43,715, 124,531 and 99,044 shares of common stock were not included in the computations of diluted earnings per share for the years ended December 31, 2016, 2015 and 2014, respectively. The options’ exercise prices were greater than the average market price for the common stock and the effect of the options on earnings per share would have been antidilutive. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 19. Accumulated Other Comprehensive Income (Loss) Below is the change in the Company’s accumulated other comprehensive income (loss) (AOCI) balance by component (net of income taxes) for the years ended December 31, 2016, 2015 and 2014: (In thousands) Foreign Currency Translation Adjustments Defined Benefit Pension Plan Adjustments Cash Flow Hedge Adjustments Total Balance at December 31, 2013 $ (10,971 ) $ (18,672 ) $ 115 $ (29,528 ) Other comprehensive income before reclassifications (31,943 ) (24,186 ) 0 (56,129 ) Amounts reclassified from AOCI — 1,709 3 1,712 Net current period other comprehensive income (31,943 ) (22,477 ) 3 (54,417 ) Balance at December 31, 2014 $ (42,914 ) $ (41,149 ) $ 118 $ (83,945 ) Other comprehensive income before reclassifications (45,423 ) 1,311 (49 ) (44,161 ) Amounts reclassified from AOCI — 3,013 5 3,018 Net current period other comprehensive income (45,423 ) 4,324 (44 ) (41,143 ) Balance at December 31, 2015 $ (88,337 ) $ (36,825 ) $ 74 $ (125,088 ) Other comprehensive income before reclassifications (8,438 ) 3,818 (19 ) (4,639 ) Amounts reclassified from AOCI — 2,217 45 2,262 Net current period other comprehensive income (8,438 ) 6,035 26 (2,377 ) Balance at December 31, 2016 $ (96,775 ) $ (30,790 ) $ 100 $ (127,465 ) Amounts reclassified out of AOCI for the three years ended December 31, 2016, 2015 and 2014, is displayed below: Amounts Reclassified from AOCI (a) (In thousands) Affected Line Item in Consolidated 2016 2015 2014 Statements of Income Amortization of defined pension items: Prior service cost $ (14 ) $ (17 ) $ (20 ) Actuarial loss (3,508 ) (4,757 ) (2,727 ) $ (3,522 ) (4,774 ) (2,747 ) Total before tax (b) 1,305 1,761 1,038 Tax benefit $ (2,217 ) $ (3,013 ) $ (1,709 ) Net of tax Gains and losses on cash flow hedges: Interest rate contracts $ (82 ) $ (22 ) $ (20 ) Interest, net Foreign exchange contracts 9 9 10 Cost of sales (73 ) (13 ) (10 ) Total before tax 28 8 7 Tax benefit $ (45 ) $ (5 ) $ (3 ) Net of tax Total reclassifications for the period $ (2,262 ) $ (3,018 ) $ (1,712 ) Net of tax (a) Amounts in parentheses denote expense to statement of income. (b) This component of accumulated other comprehensive income is included in the computation of net periodic benefit cost (see Note 13 for details regarding net periodic benefit costs for the Company’s U.S. and U.K. defined benefit plans). |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | 20. Acquisitions 2016 Business Acquisitions O n October 3, 2016, the Company’s subsidiary in Brazil acquired the commercial business of Tebras Tensoativos do Brazil Ltda. (Tebras) and the sulfonation production facility of PBC Industria Quimica Ltda. (PBC). The purchase price of the acquisitions, including adjustments for working capital, was R$93,309,000 (approximately $29,075,000), of which R$70,000,000 (approximately $21,812,000) was paid from cash on hand, R$9,000,000 (approximately $2,804,000) was deposited in escrow to cover certain potential losses as specified in the purchase agreement and R$14,309,000 (approximately $4,459,000) for working capital adjustments is unpaid pending agreement on the adjustment amounts. (All U.S. dollar equivalents were calculated using the October 3, 2016 exchange rates.) The combined entities have 25,000 metric tons of sulfonation capacity and a large, diverse customer portfolio. The acquired entities’ contributions to Company net sales and net income for the year ended December 31, 2016, were insignificant. In addition to the purchase price paid, the Company incurred approximately $250,000 of acquisition-related expenses for legal, consulting, valuation, accounting and environmental testing services. These costs were included in the administrative expenses line of the Company’s consolidated statement of net income for the year ended December 31, 2016. The acquisitions were accounted for as a business combination, and, accordingly, the assets acquired and liabilities assumed as part of the acquisition were measured and recorded at their estimated fair values. The following table summarizes the assets acquired and liabilities assumed: (Dollars in thousands) October 3, 2016 Assets: Current assets $ 5,165 Property, plant and equipment 5,716 Identifiable intangible assets 7,354 Goodwill 14,327 Total assets acquired $ 32,562 Liabilities: Current liabilities $ 408 Deferred tax liability 3,079 Total liabilities assumed $ 3,487 Net assets acquired $ 29,075 The acquired goodwill, which was assigned entirely to the Company’s Surfactant segment, is not tax deductible. The goodwill reflects the opportunity of introducing the Company’s broad line of surfactant products to the acquired entities’ large customer base. Identifiable intangible assets included customer relationships ($4,331,000), a supply contract ($2,555,000) and non-compete agreements ($468,000). The amortization period for these intangibles at the time of acquisition were 13 years, four years and five years, respectively. The Company continues to evaluate the purchase price allocation, including the estimated fair values of assets acquired and liabilities assumed. Any changes to these amounts during the measurement period may result in an adjustment to the recorded amount of goodwill. Tebras and PBC generated approximately $28,000,000 in net sales in 2015, with net income of less than $2,000,000. Pro forma financial information for 2015 and 2016 has not been included because revenues and earnings of the Company would not have been significantly different than reported had the acquisition date been January 1, 2015. 2015 Acquisitions Business Acquisition On June 15, 2015, the Company acquired Procter & Gamble do Brasil S.A.’s (P&G Brazil’s) sulfonation production facility in Bahia, Brazil. The facility is located in northeastern Brazil and has 30,000 metric tons of surfactants capacity. The acquired business is included in the Company’s Surfactant segment. The new business complements the Company’s existing Vespasiano, Brazil, plant and provides opportunities to serve growing northeastern Brazil. The purchase price was cash of $5,133,000. The acquisition was accounted for as a business combination and, accordingly, the assets acquired and liabilities assumed as part of the acquisition were measured and recorded at their estimated fair values. The purchase included property, plant and equipment valued at $6,007,000 and the assumption of liabilities valued at $874,000. No intangibles or goodwill were acquired in the business combination. The purchase price allocation is final, and no allocation adjustments were made to the amounts recorded at the acquisition date. Other acquisition-related expenses were not material. Post-acquisition financial results for the acquired business were insignificant. Pro forma financial information has not been included because revenues and earnings of the Company would not have been significantly different than reported had the acquisition date been January 1, 2014. See Note 22 for information regarding the subsequent impairment of assets at the Bahia, Brazil, site. Asset Acquisition In 2015, the Company purchased select chemical manufacturing assets and land from The Sun Products Corporation’s Pasadena, Texas, manufacturing site. The Company intends to redeploy the manufacturing assets as needed to reduce future capital expenditures. The Company is currently planning on making nonionic surfactants at the site. The purchase price of the land and manufacturing assets was $13,000,000 cash, of which $3,377,000 was allocated to land and $9,623,000 was allocated to manufacturing assets. |
Sale of Product Line
Sale of Product Line | 12 Months Ended |
Dec. 31, 2016 | |
Sale Of Product Line [Abstract] | |
Sale of Product Line | 21. Sale of Product Line In January 2015, the Company sold its specialty polyurethane systems product line (kits) to J6 Polymers, LLC (J6) for cash of $3,262,000. Kits were part of the Company’s Polymers segment and accounted for approximately $2,800,000 of the Company’s 2014 net sales. The sale of kits included inventory, customer and supplier lists, formulations, manufacturing procedures and all other intellectual property associated with the manufacturing and selling of kits. As a result of the sale, Company operating income for the year ended December 31, 2015, included a gain of $2,862,000. The gain was attributed to the Polymer segment. J6 is a business wholly-owned and operated by members of the immediate family of Robert J. Wood, a former Company executive who retired from the Company in April 2014. Mr. Wood is a managing member of J6. |
Business Restructuring and Asse
Business Restructuring and Asset Impairments | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring And Related Activities [Abstract] | |
Business Restructuring and Asset Impairments | 22. Business Restructuring and Asset Impairments 2016 Restructuring In May 2016, the Company announced plans to shut down its Longford Mills, Ontario, Canada (Longford Mills) manufacturing facility, a part of the Surfactant reportable segment, by December 31, 2016. Production of goods manufactured at the facility was moved to other Company North American production sites. The plant closure is expected to enable the Company to improve its asset utilization in North America and to reduce the Company’s fixed cost base. In 2016, $2,817,000 of restructuring expense was recognized, which reflected termination benefits for approximately 30 employees and expenses for asset decommissioning costs. Decommissioning activities are expected to extend into 2017. In total, restructuring expenses related to the Longford Mills shutdown are expected to approximate $4,000,000 to $4,500,000. Below is a reconciliation of the beginning and ending balances of the Longford Mills restructuring liability: (In thousands) Termination Benefits Other Expense Total Restructuring liability at January 1, 2016 $ — $ — $ — Expense recognized 1,594 1,223 2,817 Amounts paid — (781 ) (781 ) Foreign currency translation (46 ) (5 ) (51 ) Restructuring liability at December 31, 2016 $ 1,548 $ 437 $ 1,985 In addition to the restructuring costs, the Company reduced the useful lives of the manufacturing assets in the Longford Mills plant. As a result, the Company recognized $4,471,000 of additional depreciation expense for the year ended December 31, 2016. The expense was included in the cost of sales line of the consolidated statements of income. No additional future depreciation related to the change in the useful lives of the assets is expected. 2016 Asset Impairments In the fourth quarter of 2016, the Company recorded pretax charges for asset impairments of $4,247,000, all related to the Company’s Surfactant segment (although the charges were excluded from the Surfactant segment operating results). In the United States, $2,297,000 of engineering and design costs associated with a planned nonionic surfactants plant construction project in Louisiana were written off from the Company’s construction-in-process account, as management decided to make nonionic surfactants at the site in Pasadena, Texas, acquired in 2015 from The Sun Products Corporation. In Brazil, the major customer for the Bahia plant exited the product line for which that plant supplied them product. As a result, the Company was required to recognize $1,950,000 of asset impairment expenses for the facility. Because the customer was under contract with the Company, a negotiated agreement was reached in 2016 whereby the customer agreed to compensate the Company in the lump-sum amount of $4,250,000 for lost future revenues. The compensation was reported in net sales for the year ended December 31, 2016. 2014 Restructuring In the fourth quarter of 2014, a restructuring plan was approved that affected certain Company functions, principally the research and development function and to a lesser extent product safety and compliance and plant site accounting functions (primarily impacting the Surfactant reportable segment). The objective of the plan was to better align staffing resources with the needs of the Company’s diversification and growth initiatives. In implementing the plan, management offered a voluntary retirement incentive to employees of the affected functions. By December 31, 2014, 13 employees accepted the voluntary termination incentive. As a result, the Company recognized a $1,722,000 charge against income for the three and twelve months ended December 31, 2014. The restructuring was not considered a cost savings initiative but rather an opportunity to create some staffing flexibility to reposition roles to meet changing business needs. The severance payouts were completed by June 30, 2015. Other costs for the restructuring were not material. The following is a reconciliation of the beginning and ending balances of the restructuring liability: (In thousands) Severance Expense Restructuring liability at December 31, 2014 $ 1,722 Amounts paid (1,695 ) Foreign currency translation (18 ) Expense adjustment (9 ) Restructuring liability at December 31, 2015 $ — 2014 Asset Impairments In the fourth quarter of 2014, the Company wrote off the net book values of three assets, resulting in a pretax charge against income of $2,287,000 for the three and twelve months ended December 31, 2014. All three assets were part of the Company’s Surfactant segment, although the write-off charges were excluded from Surfactants segment operating results. At the Company’s Singapore location, $1,316,000 of engineering costs for an asset expansion project were reversed out of the Company’s construction-in-process account and into expense because management determined that, given the business environment at that time, the magnitude of the project could no longer be economically justified. At the Company’s Millsdale, Illinois, plant, a reactor used to manufacture certain surfactant products was no longer required and was retired and removed from service. The book value of the asset was $714,000. The remaining $257,000 of impairment charges related to an administrative building at the Company’s United Kingdom site that was vacated and abandoned in place. |
Customer Claim Losses
Customer Claim Losses | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Customer Claim Losses | 23. Customer Claim Losses In the fourth quarter of 2016, the Company reached negotiated settlements for two customer claims which alleged that product manufactured by the Company caused performance problems with the customers’ products. The combined amount of the negotiated settlements was $7,367,000, which was recorded as a reduction of net sales in the year ended December 31, 2016. Both claims related to the Company’s Surfactant segment. The Company is in discussions with its insurance carriers to determine whether these losses are covered under the Company’s insurance policies. No expected benefits from insurance recovery were recorded for these incidents in 2016. |
Statement of Cash Flows - Nonca
Statement of Cash Flows - Noncash Investing and Financing Activities | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Statement of Cash Flows - Noncash Investing and Financing Activities | 24. Statement of Cash Flows – Noncash Investing and Financing Activities Noncash investing activities included liabilities (accounts payable) incurred for fixed asset acquisitions of approximately $10,410,000, $9,515,000 and $17,797,000 that were unpaid at December 31, 2016, 2015 and 2014, respectively. Noncash investing activities also included $4,459,000 for unpaid working capital adjustments related to the Company’s 2016 acquisitions in Brazil (see Note 20). Noncash financing activities were immaterial for the years ended December 31, 2016, 2015 and 2014. |
TIORCO, LLC Joint Venture
TIORCO, LLC Joint Venture | 12 Months Ended |
Dec. 31, 2016 | |
Equity Method Investments And Joint Ventures [Abstract] | |
TIORCO, LLC Joint Venture | 25. TIORCO, LLC Joint Venture In October 2015, the Company and its partner, Nalco Company (a subsidiary of Ecolab Inc.), made the decision to dissolve their equally owned and operated TIORCO, LLC (TIORCO) enhanced oil recovery joint venture. As a result of the dissolution, TIORCO incurred fourth quarter 2015 exit costs, which included termination pay, lease termination costs and asset impairments. The Company’s share of the exit costs was $2,356,000, which was reported in the ‘Loss from equity in joint venture’ line of the consolidated statement of income for the year ended December 31, 2015. The Company made a final cash investment of $2,900,000 to TIORCO during the three-month period ended March 31, 2016, to fund the exit costs and other final cash requirements for dissolving the joint venture. Legal dissolution of TIORCO is finalized. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data | Selected Quarterly Financial Data (In thousands, except per share data) Unaudited 2016 Quarter First Second Third Fourth Year Net Sales $ 445,897 $ 454,603 $ 445,030 $ 420,636 $ 1,766,166 Gross Profit 93,499 92,931 83,395 68,720 338,545 Operating Income 44,607 42,916 28,738 9,932 126,193 Interest, net (3,614 ) (3,417 ) (2,824 ) (3,350 ) (13,205 ) Income Before Income Taxes 40,468 39,196 27,143 7,009 113,816 Net Income (a) 27,919 28,501 21,367 8,411 86,198 Net Income Attributable to Stepan Company (a) 27,916 28,496 21,362 8,417 86,191 Per Diluted Share (a) 1.22 1.24 0.92 0.36 3.73 2015 Quarter First Second Third Fourth Year Net Sales $ 460,451 $ 452,414 $ 444,011 $ 419,291 $ 1,776,167 Gross Profit 76,442 79,512 77,598 74,689 308,241 Operating Income 35,178 28,595 38,794 20,223 122,790 Interest, net (4,054 ) (2,869 ) (3,837 ) (3,773 ) (14,533 ) Income Before Income Taxes 30,536 24,146 33,113 15,061 102,856 Net Income 21,286 16,941 24,934 12,876 76,037 Net Income Attributable to Stepan Company 21,270 16,914 24,912 12,872 75,968 Per Diluted Share 0.93 0.74 1.09 0.56 3.32 (a) The amounts for net income, net income attributable to Stepan Company and net income attributable to Stepan Company per diluted share for the first, second and third quarters of 2016 have been changed from the amounts originally reported as a result of the Company’s early adoption of ASU No. 2016-9, Compensation – Stock Compensation (Topic 718): Improvement to Employee Share-Based Payment Accounting. 2016 (In thousands, except per share data) First Second Third Net Income $ 27,657 $ 27,870 $ 20,432 Net Income Attributable to Stepan Company 27,654 27,865 20,427 Per Diluted Share 1.21 1.21 0.89 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations Stepan Company (the Company) operations consist predominantly of the production and sale of specialty and intermediate chemicals, which are sold to other manufacturers for use in a variety of end products. Principal markets for all products are manufacturers of cleaning and washing compounds (including detergents, shampoos, fabric softeners, toothpastes and household cleaners), paints, cosmetics, food, beverages, nutritional supplements, agricultural products, plastics, furniture, automotive equipment, insulation and refrigeration. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires Company management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and all wholly and majority-owned subsidiaries in which the Company exercises controlling influence. The equity method is used to account for investments in which the Company exercises significant but noncontrolling influence. Intercompany balances and transactions are eliminated in consolidation. The Company has an 80 percent ownership interest in the Nanjing Stepan Jinling Chemical Limited Liability Company (a joint venture) and exercises controlling influence over the entity. Therefore, Nanjing Stepan Jinling Chemical Limited Liability Company’s accounts are included in the Company’s consolidated financial statements. The partner’s interest in the joint venture’s net income is reported in the net income attributable to noncontrolling interests line of the consolidated statements of income. The partner’s interest in the net assets of the joint venture is reported in the noncontrolling interests line (a component of equity separate from Company equity) of the consolidated balance sheets. Prior to 2016, the Company and Nalco Company (a subsidiary of Ecolab Inc.) equally owned and controlled TIORCO, LLC, a joint venture operated out of Denver, Colorado. In October 2015, the Company and Nalco Company made the decision to dissolve TIORCO, LLC. See Note 24 for information regarding the dissolution of the joint venture. Prior to the dissolution of the joint venture, the Company’s investment in TIORCO, LLC was accounted for using the equity method and was included in the other non-current assets line on the consolidated balance sheets. The Company’s share of joint venture’s net earnings was included in the loss from equity in joint ventures line of the consolidated statements of income. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with purchased maturities of three months or less to be cash equivalents. At December 31, 2016, the Company’s cash and cash equivalents totaled $225.7 million including $38.6 million in two separate money market funds, each of which was rated AAA by Standard and Poor’s and Aaa by Moody’s. Cash in U.S. demand deposit accounts totaled $88.9 million and cash of the Company’s non-U.S. subsidiaries held outside the U.S. totaled $98.2 million as of December 31, 2016. |
Receivables and Credit Risk | Receivables and Credit Risk Receivables are stated net of allowances for doubtful accounts and other allowances and primarily include trade receivables from customers, as well as nontrade receivables from suppliers, governmental tax agencies and others. The Company is exposed to credit risk on accounts receivable balances. This risk is mitigated by the Company’s large, diverse customer base, which is dispersed over various geographic regions and industrial sectors. No single customer comprised more than 10 percent of the Company’s consolidated net sales in 2016, 2015 or 2014. The Company maintains allowances for potential credit losses. Specific customer allowances are recorded when a review of customer creditworthiness and current economic conditions indicate that collection is doubtful. In addition, the Company maintains a general allowance as a percentage of total trade receivables. The general allowance percentage is periodically reviewed and adjusted based on historical bad debt losses of the Company. The Company also maintains other customer allowances that occur in the normal course of business. Such allowances are based on historical averages and trade receivable levels. The following is an analysis of the allowance for doubtful accounts and other accounts receivable allowances for the years ended December 31, 2016, 2015 and 2014: (In thousands) 2016 2015 2014 Balance at January 1 $ 8,046 $ 10,011 $ 5,945 Provision charged to income 1,917 1,106 4,625 Accounts written off, net of recoveries (208) (3,071 ) (559 ) Balance at December 31 $ 9,755 $ 8,046 $ 10,011 The 2014 provision charged to income included a $2,388,000 bad debt allowance for a major Polymer customer that filed for protection under Chapter 11 of the U.S. Bankruptcy Code in September 2014. Also included in the 2014 provision charged to income were additional allowances for certain high risk accounts and for general reserves. The accounts written off for 2015 included the write-off of the Polymer customer’s uncollectible receivable balance. |
Inventories | Inventories Inventories are valued at cost, which is not in excess of market value, and include material, labor and plant overhead costs. The last-in, first-out (LIFO) method is used to determine the cost of the Company’s U.S. inventories. The first-in, first-out (FIFO) method is used for all other inventories. Inventories priced at LIFO as of December 31, 2016 and 2015, accounted for 66 and 72 |
Property, Plant and Equipment | Property, Plant and Equipment Depreciation of property, plant and equipment is provided on a straight-line basis over the estimated useful lives of the assets. Lives used for calculating depreciation are generally 30 years for buildings and 15 years for building improvements. For assets classified as machinery and equipment, lives generally used for calculating depreciation expense range from 10 to 15 years for manufacturing equipment, five to 10 years for furniture and fixtures, three to five years for vehicles and three to 10 years for computer equipment and software. Manufacturing of chemicals is capital intensive with a large majority of the assets included in machinery and equipment representing manufacturing equipment. Major renewals and betterments are capitalized in the property accounts, while maintenance and repairs ($51,530,000, $52,549,000, and $55,923,000 Included in the computer equipment and software component of machinery and equipment are costs related to the acquisition and development of internal-use software. Capitalized costs for internal-use software include external direct costs of materials and services consumed in obtaining and developing the software. For development projects where major internal resources are committed, payroll and payroll-related costs incurred during the application development phase of the project are also capitalized. The capitalized costs are amortized over the useful lives of the software, which are generally three to 10 years. Costs incurred in the preliminary project phase are expensed. Interest charges on borrowings applicable to major construction projects are capitalized. Property, plant and equipment assets are tested for impairment when events indicate that impairment may have occurred. See Note 22 for 2016 and 2014 asset impairments. |
Fair Value Measurements | Fair Value Measurements GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Furthermore, GAAP establishes a framework, in the form of a three-level hierarchy, for measuring fair value that prioritizes the inputs to valuation techniques used to measure fair value. The following describes the hierarchy levels: Level 1 - quoted prices in active markets for identical assets and liabilities. Level 2 - inputs other than quoted prices included within Level 1 that are directly or indirectly observable for the asset or liability, such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 - unobservable inputs which reflect the entity’s own assumptions about the assumptions market participants use in pricing the assets and liabilities. The Company applies the fair value measurement provisions of GAAP to any of its financial assets and liabilities that are carried at fair value on the consolidated balance sheets (see Note 2), its outstanding debt for disclosure purposes (also Note 2) and its pension plan assets (see Note 13). The Company also applies the fair value measurement requirements to nonrecurring fair value measurements of nonfinancial assets and liabilities recorded in conjunction with business combinations and as part of impairment reviews for goodwill and other long-lived assets. |
Revenue Recognition | Revenue Recognition Revenue is recognized upon shipment of goods to customers, at which time title and risk of loss pass to the customer. For arrangements where the Company consigns product to a customer location, revenue is recognized when the customer uses the inventory. The Company records shipping and handling billed to a customer in a sales transaction as revenue. Costs incurred for shipping and handling are reported in cost of sales. Volume discounts due customers are estimated and recorded in the same period as the sales to which the discounts relate and reported as reductions of revenue in the consolidated statements of income. |
Cost of Sales | Cost of Sales Cost of sales comprises raw material costs (including inbound freight expense to deliver the raw materials), manufacturing plant labor expenses and various manufacturing overhead expenses, such as utility, maintenance, operating supply, amortization and manufacturing asset depreciation expenses. Cost of sales also includes outbound shipping and handling expenses, inter-plant transfer costs and warehouse expenses. |
Operating Expenses | Operating Expenses Selling expense comprises salary and the related fringe benefit expenses for marketing and sales personnel and operating costs, such as outside agent commissions, automobile rental and travel-related expenses, which support the sales and marketing functions. Bad debt charges and any depreciation expenses related to marketing assets (e.g., computers) are also classified as selling expense. Administrative expense comprises salary and the related fringe benefit expenses and operating costs for the Company’s various administrative functions, which include information services, finance, legal, and human resources. Environmental remediation expenses are also classified as administrative expense. The Company’s research and development costs are expensed as incurred. These expenses are aimed at discovery and commercialization of new knowledge with the intent that such effort will be useful in developing a new product or in bringing about a significant improvement to an existing product or process. Total research and development expenses were $34,856,000, $30,315,000 and $27,236,000 in 2016, 2015 and 2014, respectively. The remainder of research, development and technical service expenses reflected on the consolidated statements of income relates to technical services, which include routine product testing, quality control and sales support service. Compensation expense or income related to the Company’s deferred compensation plans is presented in the deferred compensation expense (income) line in the Consolidated Statements of Income. |
Environmental Expenditures | Environmental Expenditures Environmental expenditures that relate to current operations are expensed in cost of sales. Expenditures that mitigate or prevent environmental contamination and that benefit future operations are capitalized as assets and depreciated on a straight-line basis over the estimated useful lives of the assets, which are typically 10 years. Estimated future expenditures that relate to an existing condition caused by past operations, and which do not contribute to current or future revenue generation, are recorded as liabilities, with the corresponding charge recorded in administrative expenses, when environmental assessments and/or remedial efforts are probable and the cost or range of possible costs can be reasonably estimated. When no amount within the range is a better estimate than any other amount, the minimum amount in the range is accrued. Some of the factors on which the Company bases its estimates include information provided by feasibility studies, potentially responsible party negotiations and the development of remedial action plans. Legal costs related to environmental matters are expensed as incurred (see Note 16 for environmental contingencies). |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The Company’s intangible assets include patents, agreements not to compete, trademarks, customer lists and relationships, technological and manufacturing know-how, supply contracts and goodwill, all of which were acquired as part of business or product line acquisitions. Intangible assets other than goodwill are determined to have either finite or indefinite useful lives. The Company currently has no indefinite-life intangible assets. The values for intangible assets with finite lives are amortized over the useful lives of the assets. Currently, the useful lives for Company’s finite-lived intangible assets are as follows: patents – 10-15 years; non-compete agreements – five years; trademarks – 11 years; customer relationships – 10-13 years; supply contracts – four years and know-how – eight years. In addition, finite-life intangible assets are tested for impairment when events or changes in circumstances indicate that the carrying value of an intangible asset may not be recoverable. Goodwill is not amortized but is tested for impairment at least annually or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit to which goodwill relates below the reporting unit’s carrying value. See Note 4 for detailed information about goodwill and other intangible assets. |
Income Taxes | Income Taxes The provision for income taxes is determined using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities. Deferred tax assets or liabilities are computed using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets and liabilities are expected to be realized or settled. Deferred tax assets and liabilities are adjusted for changes in tax rates or laws, and the effects of the changes are recorded in income in the period of enactment. Valuation allowances are recorded to reduce deferred tax assets when the Company determines that it is more likely than not that a tax benefit will not be realized. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by tax authorities. If the tax position meets the more-likely-than-not threshold, the tax benefit recognized in the consolidated financial statements is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon effective settlement. Unrecognized tax benefits, which are differences between the tax position taken on a tax return and the amounts recognized in the financial statements, are recorded either as an increase to a tax liability or as a decrease to an income tax receivable. The Company includes estimated interest and penalty amounts related to the unrecognized tax benefits in the tax provision. See Note 9 for detailed information about income taxes. |
Translation of Foreign Currencies | Translation of Foreign Currencies For the Company’s consolidated foreign subsidiaries whose functional currency is the local foreign currency, assets and liabilities are translated into U.S. dollars at exchange rates in effect at year end and revenues and expenses are translated at average exchange rates for the year. Any resulting translation adjustments are included in the consolidated balance sheets in the accumulated other comprehensive loss line of stockholders’ equity. Gains or losses on foreign currency transactions are reflected in the other, net caption of the consolidated statements of income. The Company has one foreign subsidiary whose functional currency is the U.S. dollar. For this subsidiary, nonmonetary assets and liabilities are translated at historical rates, monetary assets and liabilities are translated at exchange rates in effect at year end, revenues and expenses are translated at average exchange rates for the year and translation gains and losses are included in the other, net caption of the consolidated statements of income. |
Stock-Based Compensation | Stock-Based Compensation The Company grants stock options, stock awards (including performance-based stock awards) and stock appreciation rights (SARs) to certain employees under its incentive compensation plans. The Company calculates the fair values of stock options, stock awards and SARs on the date such instruments are granted. The fair values of the stock options and stock awards are then recognized as compensation expense over the vesting periods of the instruments. The Company’s SARs granted before 2015 settle in cash. The cash-settled SARs are accounted for as liabilities that must be re-measured at fair value at the end of each reporting period. Compensation expense for each reporting period is calculated as the period-to-period change (or portion of the change, depending on the proportion of the vesting period that has been completed at the reporting date) in the fair value of the cash-settled SARs. SARs granted subsequent to 2014 are settled in shares of Company common stock. Compensation expense for the stock-settled SARs is calculated in the same way as compensation expense for stock options. See ‘Recent Accounting Pronouncements’ of Note 1 for a discussion of the Company’s early adoption of the new accounting guidance for stock-based compensation. Also, see Note 11 for detailed information about the Company’s stock-based compensation. |
Earnings Per Share | Earnings Per Share Basic earnings per share amounts are computed as net income attributable to the Company divided by the weighted-average number of common shares outstanding. Diluted earnings per share amounts are based on the weighted-average number of common shares outstanding plus the weighted-average of net common shares (under the treasury stock method) that would be outstanding assuming the exercise of outstanding stock options and stock-settled SARs, the vesting of unvested stock awards that have no performance or market condition and the issuance of contingent performance stock awards. See Note 18 for detailed information about the Company’s earnings per share calculations. |
Comprehensive Income and Accumulated Other Comprehensive Income | Comprehensive Income and Accumulated Other Comprehensive Income Comprehensive income includes net income and all other non-owner changes in equity that are not reported in net income. Comprehensive income is disclosed in the consolidated statements of comprehensive income. Accumulated other comprehensive income (AOCI) is reported as a component of stockholders’ equity in the Company’s consolidated balance sheets. See Note 19 for detailed information regarding changes in the Company’s AOCI and reclassifications out of AOCI to income. |
Segment Reporting | Segment Reporting The Company reports financial and descriptive information about its reportable operating segments. Operating segments are components of the Company that have separate financial information that is regularly evaluated by the chief operating decision maker to assess segment performance and allocate resources. The Company discloses segment revenue, operating income, assets, capital expenditures and depreciation and amortization expenses. Enterprise-wide financial information about the geographic locations in which the Company earns revenues and holds assets is also disclosed (see Note 17). |
Derivative Instruments | Derivative Instruments Derivative instruments are recognized in the consolidated balance sheets as either assets or liabilities measured at fair value. For derivative instruments that are not designated as hedging instruments, changes in the fair values of the derivative instruments are recognized currently in earnings. For derivative instruments designated as hedging instruments, depending on the nature of the hedge, changes in the fair values of the derivative instruments are either offset in earnings against changes in the fair values of the hedged items or recognized in AOCI until the hedged transaction is recognized in earnings. At the time a hedging relationship is designated, the Company establishes the method it will use for assessing the effectiveness of the hedge and the measurement approach for determining the ineffective aspect of the hedge. Company policy prohibits the use of derivative instruments for trading or speculative purposes. See Note 3 for further information regarding the Company’s use of derivatives. At December 31, 2016, the Company held open forward contracts for the purchase of 0.8 million dekatherms of natural gas in 2017 at a cost of $2,285,000. The Company uses forward contracts to minimize its exposure to volatile natural gas prices. Because the Company anticipates taking delivery of the natural gas for use in its operations, the forward contracts qualify for the normal purchase exception provided under U.S. GAAP for derivative instruments. The Company has elected the exception for such contracts. As a result, the forward contracts are not accounted for as derivative instruments. The cost of natural gas is charged to expense at the time the natural gas is delivered and used. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Guidance Adopted in the Quarter Ended December 31, 2016 In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-9, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting The Company elected to early-adopt the guidance in ASU No. 2016-9 in the fourth quarter ended December 31, 2016, which required the Company to reflect adjustments arising from the adoption of the new guidance as of January 1, 2016, the beginning of the annual period that included the interim period of adoption. The primary impact of adoption was the recognition of excess tax benefits in the provision for income taxes rather than additional paid-in capital for all periods in fiscal year 2016. Additional amendments to the accounting for income taxes had no impact on retained earnings as of January 1, 2016, where the cumulative effect of these changes are required to be recorded, as all excess tax benefits had been previously recognized as a reduction of taxes payable. The Company has elected to continue to estimate forfeitures expected to occur to determine the amount of compensation cost to be recognized in each period. In addition to the foregoing, the Company elected to apply the presentation requirements for cash flows related to excess tax benefits retrospectively to all periods presented, which resulted in an increase to both net cash provided by operating activities and net cash used in financing activities of $442,000 and $640,000 for the years ended December 31, 2015 and 2014, respectively. The presentation requirements for cash flows related to employee taxes paid for withheld shares had no impact on the statements of cash flows since the Company has historically presented such payments as financing activities. Adoption of ASU No. 2016-9 resulted in the recognition of excess tax benefits in the Company’s provision for income taxes (i.e., a reduction in the tax provision) rather than additional paid-in capital of $2,025,000 for the year ended December 31, 2016. Adoption of the new guidance also affected the calculation of 2016 diluted earnings per share, as excess tax benefits, due to their inclusion in earnings, are now excluded from the calculation of assumed proceeds available to repurchase shares under the treasury stock method. Other Accounting Guidance In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-9, Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date In April 2015, the FASB issued ASU No. 2015-3, Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330), Simplifying the Measurement of Inventory In September 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805), Simplifying the Accounting for Measurement-Period Adjustments. In February 2016, the FASB issued ASU No. 2016-2, Leases (Topic 842) In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory In January 2017, the FASB issued ASU No. 2017-4, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment |
Summary of Significant Accoun37
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Allowance for Doubtful Accounts and Other Accounts Receivable Allowance | The following is an analysis of the allowance for doubtful accounts and other accounts receivable allowances for the years ended December 31, 2016, 2015 and 2014: (In thousands) 2016 2015 2014 Balance at January 1 $ 8,046 $ 10,011 $ 5,945 Provision charged to income 1,917 1,106 4,625 Accounts written off, net of recoveries (208) (3,071 ) (559 ) Balance at December 31 $ 9,755 $ 8,046 $ 10,011 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Values and Related Carrying Values of Debt | At December 31, 2016 and 2015, 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 $1,141,000 and $1,269,000 as of December 31, 2016 and 2015, respectively): (In thousands) December 31 2016 2015 Fair value $ 316,364 $ 331,183 Carrying value 318,154 332,623 |
Financial Assets and Liabilities Measured on a Recurring Basis at Fair Value | The following tables present financial assets and liabilities measured on a recurring basis at fair value as of December 31, 2016 and 2015, and the level within the fair value hierarchy in which the fair value measurement falls: (In thousands) December 2016 Level 1 Level 2 Level 3 Mutual fund assets $ 24,055 $ 24,055 $ — $ — Derivative assets: Foreign currency contracts 453 — 453 — Total assets at fair value $ 24,508 $ 24,055 $ 453 $ — Derivative liabilities: Foreign currency contracts $ 469 $ — $ 469 $ — (In thousands) December 2015 Level 1 Level 2 Level 3 Mutual fund assets $ 20,910 $ 20,910 $ — $ — Derivative assets: Foreign currency contracts 112 — 112 — Total assets at fair value $ 21,022 $ 20,910 $ 112 $ — Derivative liabilities: Foreign currency contracts $ 305 $ — $ 305 $ — Interest rate contracts 53 — 53 — Total liabilities at fair value $ 358 $ — $ 358 $ — |
Goodwill and Other Intangible39
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Value of Goodwill | The changes in the carrying value of goodwill for the years ended December 31, 2016 and 2015, were as follows: (In thousands) Surfactants Segment Polymer Segment Specialty Products Segment Total 2016 2015 2016 2015 2016 2015 2016 2015 Balance as of January 1 Goodwill $ 8,869 $ 9,025 $ 5,380 $ 5,461 $ 483 $ 483 $ 14,732 $ 14,969 Accumulated impairment loss (3,467 ) (3,467 ) — — — — (3,467 ) (3,467 ) Goodwill, net 5,402 5,558 5,380 5,461 483 483 11,265 11,502 Goodwill acquired (a) 14,327 — — — — — 14,327 — Foreign currency translation (238 ) (156 ) (46 ) (81 ) — — (284 ) (237 ) Balance as of December 31 Goodwill 22,958 8,869 5,334 5,380 483 483 28,775 14,732 Accumulated impairment loss (3,467 ) (3,467 ) — — — — (3,467 ) (3,467 ) Goodwill, net $ 19,491 $ 5,402 $ 5,334 $ 5,380 $ 483 $ 483 $ 25,308 $ 11,265 |
Components of Other Intangible Assets and Changes in Gross Carrying Values | The following table presents the components of other intangible assets, all of which have finite lives, as of December 31, 2016 and 2015. The year-over-year changes in gross carrying values resulted from the 2016 acquisition disclosed in Note 20 and the effects of foreign currency translation. (In thousands) Gross Carrying Value Accumulated Amortization December 31 December 31 2016 2015 2016 2015 Other Intangible Assets: Patents $ 6,947 $ 6,947 $ 3,294 $ 2,696 Non-compete agreements (a) 461 $ — 15 $ — Trademarks 4,087 4,087 1,525 1,150 Customer lists and relationships (a) 12,238 8,026 3,337 2,621 Supply contract (a) 2,521 — 105 — Know-how (b) 8,043 8,245 3,682 2,881 Total $ 34,297 $ 27,305 $ 11,958 $ 9,348 (a) See Note 20 for information regarding the intangibles acquired in a business combination. (b) Know-how includes intellectual property rights covering proprietary information, written formulae, trade secrets or secret processes, inventions and developmental products (whether patentable or not), discoveries, improvements, compositions, manufacturing processes, manuals, specifications and technical data. |
Estimated Amortization Expense for Identifiable Intangibles Assets | Estimated amortization expense for identifiable intangibles assets for each of the five succeeding fiscal years is as follows: (In thousands) For year ended 12/31/17 $ 3,604 For year ended 12/31/18 3,604 For year ended 12/31/19 3,604 For year ended 12/31/20 3,452 For year ended 12/31/21 2,737 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Composition of Inventories | The composition of inventories was as follows: December 31 (In thousands) 2016 2015 Finished products $ 127,597 $ 124,481 Raw materials 46,066 45,943 Total inventories $ 173,663 $ 170,424 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt comprised the following at December 31, 2016 and 2015: (In thousands) Maturity Dates December 31, 2016 December 31, 2015 (1) Unsecured private placement notes 3.95% (net of unamortized debt issuance cost of $382 and $383 for 2016 and 2015, respectively) 2021-2027 $ 99,618 $ 99,617 3.86% (net of unamortized debt issuance cost of $390 and $440 for 2016 and 2015, respectively) 2019-2025 99,610 99,560 4.86% (net of unamortized debt issuance cost of $225 and $260 for 2016 and 2015, respectively) 2017-2023 64,775 64,740 5.88% (net of unamortized debt issuance cost of $116 and $140 for 2016 and 2015, respectively) 2017-2022 34,170 39,860 5.69% (net of unamortized debt issuance cost of $28 and $46 for 2016 and 2015, respectively) 2017-2018 11,400 17,096 Debt of foreign subsidiaries Unsecured bank debt, foreign currency 2017 432 4,810 Unsecured bank term loan, foreign currency 2021 — 3,724 Secured bank debt, foreign currency 2017 7,008 1,947 Total debt $ 317,013 $ 331,354 Less current maturities 28,154 18,806 Long-term debt $ 288,859 $ 312,548 |
Schedule of Net Interest Expense | Net interest expense for the years ended December 31, 2016, 2015 and 2014, comprised the following: (In thousands) 2016 2015 2014 Interest expense $ 15,240 $ 15,488 $ 12,542 Interest income (1,247 ) (217 ) (262 ) 13,993 15,271 12,280 Capitalized interest (788 ) (738 ) (839 ) Interest expense, net $ 13,205 $ 14,533 $ 11,441 |
Leased Properties (Tables)
Leased Properties (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Consolidated Company Minimum Future Rental Payments Under Operating Leases With Initial or Remaining Noncancelable Lease Terms in Excess of One Year | Consolidated Company minimum future rental payments under operating leases with initial or remaining noncancelable lease terms in excess of one year as of December 31, 2016, are: (In thousands) Year Amount 2017 $ 7,761 2018 6,413 2019 5,561 2020 4,879 2021 3,702 Subsequent to 2021 19,276 Total minimum future rental payments $ 47,592 |
Other, Net (Tables)
Other, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Income And Expenses [Abstract] | |
Other Net in Consolidated Statements of Income | Other, net in the consolidated statements of income included the following for the years ended December 31, 2016, 2015 and 2014: (In thousands) 2016 2015 2014 Foreign exchange gains (losses) $ (14 ) $ 686 $ (220 ) Investment income 690 877 1,269 Realized and unrealized gains on investments 152 21 241 Other, net $ 828 $ 1,584 $ 1,290 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Taxes on Income and Other Related Income Before Taxes | The provisions for taxes on income and the related income before taxes for the years ended December 31, 2016, 2015 and 2014, were as follows: (In thousands) 2016 2015 2014 Taxes on Income Federal Current $ 18,811 $ 7,697 $ 3,362 Deferred (3,192 ) 3,890 4,338 State Current 2,273 1,559 782 Deferred (1,171 ) (225 ) 643 Foreign Current 14,960 14,562 9,004 Deferred (4,063 ) (664 ) 325 Total $ 27,618 $ 26,819 $ 18,454 Income before Taxes Domestic $ 64,675 $ 48,721 $ 34,091 Foreign 49,141 54,135 41,444 Total $ 113,816 $ 102,856 $ 75,535 |
Summary of Variations Between the Effective and Statutory U.S. Federal Income Tax Rates | The variations between the effective and statutory U.S. federal income tax rates are summarized as follows: (In thousands) 2016 Amount % 2015 Amount % 2014 Amount % Federal income tax provision at statutory tax rate $ 39,836 35.0 $ 36,000 35.0 $ 26,437 35.0 State tax provision on income less applicable federal tax benefit 716 0.6 867 0.8 926 1.2 Foreign income taxed at different rates (6,325 ) (5.6 ) (5,060 ) (4.9 ) (5,416 ) (7.2 ) Unrecognized tax benefits 23 0.0 1,536 1.5 241 0.3 Domestic production activities deduction (1,633 ) (1.4 ) (884 ) (0.9 ) (312 ) (0.4 ) Nontaxable foreign interest income (2,030 ) (1.8 ) (2,106 ) (2.0 ) (2,435 ) (3.2 ) Stock based compensation, excess tax benefits (a ) (1,878 ) (1.7 ) — — — — U.S. tax credits (1,100 ) (1.0 ) (3,465 ) (3.4 ) (1,086 ) (1.4 ) Non-deductible expenses and other items, net (b ) 9 0.2 (69 ) 0.0 99 0.1 Total income tax provision $ 27,618 24.3 $ 26,819 26.1 $ 18,454 24.4 (a) Excess tax benefits related to employee share-based payment transactions recognized in 2016 resulting from early adoption of ASU No. 2016-9, as described in Note 1. There is no effect for 2014 and 2015 because the recognition of excess tax benefits in the tax provision is to be done only on a prospective basis, beginning with the year of adopting the new guidance. (b) Certain 2014 amounts have been reclassified to conform to the current year presentation. |
Schedule Showing Tax Effects of Significant Temporary Differences Representing Deferred Tax Assets and Liabilities | At December 31, 2016 and 2015, the tax effects of significant temporary differences representing deferred tax assets and liabilities were as follows: (In thousands) 2016 2015 Deferred Tax Liabilities: Depreciation $ (75,973 ) $ (69,975 ) Unrealized foreign exchange loss (631 ) (614 ) Other (2,756 ) (950 ) $ (79,360 ) $ (71,539 ) Deferred Tax Assets: Pensions $ 12,077 $ 16,698 Deferred revenue 940 1,377 Other accruals and reserves 20,590 17,171 Inventories 1,815 1,833 Legal and environmental accruals 11,503 9,303 Deferred compensation 24,485 17,828 Bad debt and rebate reserves 4,195 3,685 Subsidiaries net operating loss carryforwards 1,201 602 Tax credit carryforwards 1,599 1,120 $ 78,405 $ 69,617 Valuation Allowance $ (1,815 ) $ (1,443 ) Net Deferred Tax Liabilities $ (2,770 ) $ (3,365 ) Reconciliation to Consolidated Balance Sheet: Non-current deferred tax assets (in other non-current assets) 9,727 6,090 Non-current deferred tax liabilities (12,497 ) (9,455 ) Net Deferred Tax Liabilities $ (2,770 ) $ (3,365 ) |
Schedule of Reconciliations of Unrecognized Tax Benefits | Below are reconciliations of the January 1 and December 31 balances of unrecognized tax benefits for 2016, 2015 and 2014: (In thousands) 2016 2015 2014 Unrecognized tax benefits, opening balance $ 1,958 $ 464 $ 240 Gross increases – tax positions in prior period — 1,526 — Gross increases – current period tax positions 35 29 261 Foreign currency translation (43 ) (37 ) (13 ) Lapse of statute of limitations (19 ) (24 ) (24 ) Unrecognized tax benefits, ending balance $ 1,931 $ 1,958 $ 464 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Fair Value Assumptions for Stock Options | The following are the weighted-average assumptions used to calculate the grant-date fair values of stock option awards granted in the years ended December 31, 2016, 2015 and 2014: For the Years Ended December 31 2016 2015 2014 Expected dividend yield 1.45% 1.53% 1.77% Expected volatility 35.62% 40.32% 42.04% Expected term 7.3 years 7.3 years 7.3 years Risk-free interest rate 1.52% 1.96% 2.18% |
Summary of Stock Option Activity | A summary of stock option activity for the year ended December 31, 2016 is presented below: Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic ($000) Options Outstanding at January 1, 2016 507,084 $ 36.57 Granted 103,709 44.03 Exercised (167,675 ) 23.95 Forfeited (6,992 ) 45.36 Outstanding at December 31, 2016 436,126 42.99 5.80 $ 16,785 Vested or expected to vest at December 31, 2016 432,181 42.68 5.86 13,022 Exercisable at December 31, 2016 258,093 43.12 3.82 9,900 |
Summary of Stock Award Activity | A summary of stock award activity for the year ended December 31, 2016, is presented below: Shares Weighted-Average Grant Date Fair Value Stock Awards Unvested at January 1, 2016 208,503 $ 46.55 Granted 142,242 41.81 Vested (32,319 ) 59.41 Forfeited (61,660 ) 53.05 Unvested at December 31, 2016 256,766 40.74 |
Summary of SARs Activity | The following is a summary of SARs activity for the year ended December 31, 2016: Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value ($000) SARs Outstanding at January 1, 2016 389,955 $ 50.30 Granted 215,288 43.95 Exercised (27,596 ) 54.17 Forfeited (24,065 ) 34.58 Outstanding at December 31, 2016 553,582 47.81 7.94 $ 18,642 |
Postretirement Benefit Plans (T
Postretirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |
Obligations and Funded Status | Obligations and Funded Status at December 31 (In thousands) United States United Kingdom 2016 2015 2016 2015 Change in benefit obligation Benefit obligation at beginning of year $ 160,789 $ 169,407 $ 19,950 $ 22,983 Interest cost 6,934 6,815 733 789 Actuarial (gain) loss 1,538 (9,315 ) 5,614 (1,763 ) Benefits paid (6,534 ) (6,118 ) (513 ) (891 ) Foreign exchange impact — — (3,750 ) (1,168 ) Benefit obligation at end of year $ 162,727 $ 160,789 $ 22,034 $ 19,950 (In thousands) United States United Kingdom 2016 2015 2016 2015 Change in plan assets Fair value of plan assets at beginning of year $ 121,835 $ 126,369 $ 21,425 $ 22,858 Actual return on plan assets 21,612 1,374 2,758 72 Employer contributions 179 210 378 605 Benefits paid (6,534 ) (6,118 ) (513 ) (891 ) Foreign exchange impact — — (3,712 ) (1,219 ) Fair value of plan assets at end of year $ 137,092 $ 121,835 $ 20,336 $ 21,425 Over (Under) funded status at end of year $ (25,635 ) $ (38,954 ) $ (1,698 ) $ 1,475 |
Schedule of Amounts Recognized in Balance Sheets | The amounts recognized in the consolidated balance sheets at December 31 consisted of (In thousands) United States United Kingdom 2016 2015 2016 2015 Non-current asset $ — $ — $ — $ 1,475 Current liability (166 ) (198 ) — — Non-current liability (25,469 ) (38,756 ) (1,698 ) — Net amount recognized $ (25,635 ) $ (38,954 ) $ (1,698 ) $ 1,475 |
Amounts Recognized in Accumulated Other Comprehensive Income | The amounts recognized in accumulated other comprehensive income at December 31 consisted of (In thousands) United States United Kingdom 2016 2015 2016 2015 Net actuarial loss $ 40,022 $ 54,470 $ 7,443 $ 3,764 |
Information for Pension Plans with Projected Benefit Obligations in Excess of Plan Assets | Below is information for pension plans with projected benefit obligations in excess of plan assets at December 31: (In thousands) United States United Kingdom 2016 2015 2016 2015 Projected benefit obligation $ 162,727 $ 160,789 $ 22,034 $ — Accumulated benefit obligation 162,727 160,789 22,034 — Fair value of plan assets 137,092 121,835 20,336 — |
Components of Net Periodic Benefit Cost | Net periodic benefit costs for the years ended December 31, 2016, 2015 and 2014, were as follows: (In thousands) United States United Kingdom 2016 2015 2014 2016 2015 2014 Interest cost $ 6,934 $ 6,815 $ 6,936 $ 733 $ 789 $ 964 Expected return on plan assets (9,012 ) (9,579 ) (9,523 ) (900 ) (1,054 ) (1,303 ) Amortization of net actuarial loss 3,386 4,534 2,687 77 179 — Net periodic benefit cost $ 1,308 $ 1,770 $ 100 $ (90 ) $ (86 ) $ (339 ) |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income | Other changes in plan assets and benefit obligations recognized in other comprehensive income for the years ended December 31, 2016, 2015 and 2014, were as follows: (In thousands) United States United Kingdom 2016 2015 2014 2016 2015 2014 Net actuarial (gain) loss $ (11,062 ) $ (1,110 ) $ 35,999 $ 3,756 $ (781 ) $ 2,577 Amortization of net actuarial loss (3,386 ) (4,534 ) (2,687 ) (77 ) (179 ) — Total recognized in other comprehensive income $ (14,448 ) $ (5,644 ) $ 33,312 $ 3,679 $ (960 ) $ 2,577 Total recognized in net periodic benefit cost and other comprehensive income $ (13,140 ) $ (3,874 ) $ 33,412 $ 3,589 $ (1,046 ) $ 2,238 |
Estimated Amounts Reclassified from Accumulated Other Comprehensive Income into Net Periodic Benefit Cost | The estimated amounts that will be reclassified from accumulated other comprehensive income into net periodic benefit cost in 2017 are as follows: (In thousands) United States United Kingdom Net actuarial loss $ 3,152 $ 365 |
Estimated Future Benefit Payments | Estimated Future Benefit Payments (In thousands) United States United Kingdom 2017 $ 7,065 $ 491 2018 7,550 500 2019 8,048 506 2020 8,502 517 2021 9,008 541 2022-2026 50,435 3,386 |
Defined Contribution Plan Expenses for Company's Retirement Savings Plans and Profit Sharing Plan | Defined contribution plan expenses for the Company’s retirement savings plans and profit sharing plan were as follows: (In thousands) 2016 2015 2014 Retirement savings plans $ 4,902 $ 4,644 $ 4,565 Profit sharing plan 6,230 4,972 3,619 Total $ 11,132 $ 9,616 $ 8,184 |
United States [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Company's Asset Allocations for its U.S. and U.K Pension Plans | The Company’s asset allocations for its U.S. pension plans at December 31, 2016 and 2015, by asset category, were as follows: December 31, 2016 (In thousands) Level 1 Level 2 Level 3 Total Cash and Cash Equivalents $ 3,633 $ 275 $ — $ 3,908 Equity Securities U.S. Equities 29,390 — — 29,390 Non-U.S. Equities 14,637 — — 14,637 Employer Securities 36,018 — — 36,018 Total Equities 80,045 — — 80,045 Fixed Income Securities U.S. Corporate Bonds — 28,278 — 28,278 U.S. Government and Agency Bonds 8,309 971 — 9,280 Other Bonds — 7,696 — 7,696 Total Fixed Income 8,309 36,945 — 45,254 Mutual Funds Real Estate 5,362 — — 5,362 Commodities 2,523 — — 2,523 Other — — — — Total Mutual Funds 7,885 — — 7,885 Total $ 99,872 $ 37,220 $ — $ 137,092 December 31, 2015 (In thousands) Level 1 Level 2 Level 3 Total Cash and Cash Equivalents $ — $ 1,989 $ — $ 1,989 Equity Securities U.S. Equities 33,076 — — 33,076 Non-U.S. Equities 10,630 — — 10,630 Employer Securities 24,792 — — 24,792 Total Equities 68,498 — — 68,498 Fixed Income Securities U.S. Corporate Bonds — 26,389 — 26,389 U.S. Government and Agency Bonds 365 9,371 — 9,736 Other Bonds — 7,378 — 7,378 Total Fixed Income 365 43,138 — 43,503 Mutual Funds Real Estate 5,222 — — 5,222 Commodities 1,481 — — 1,481 Other 1,142 — — 1,142 Total Mutual Funds 7,845 — — 7,845 Total $ 76,708 $ 45,127 $ — $ 121,835 |
United Kingdom [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Company's Asset Allocations for its U.S. and U.K Pension Plans | The Company’s asset allocations for its U.K. pension plans at December 31, 2016 and 2015, by asset category, were as follows: December 31, 2016 (In thousands) Level 1 Level 2 Level 3 Total Cash $ 243 $ — $ — $ 243 Equity Securities Pooled Pension Funds — 11,760 — 11,760 Fixed Income Pooled Pension Funds — 6,015 — 6,015 Real Estate Pooled Pension Funds — 559 — 559 Insurance Contracts — — 1,759 1,759 Total $ 243 $ 18,334 $ 1,759 $ 20,336 December 31, 2015 (In thousands) Level 1 Level 2 Level 3 Total Cash $ 833 $ — $ — $ 833 Equity Securities Pooled Pension Funds — 12,397 — 12,397 Fixed Income Pooled Pension Funds — 5,740 — 5,740 Real Estate Pooled Pension Funds — 486 — 486 Insurance Contracts — — 1,969 1,969 Total $ 833 $ 18,623 $ 1,969 $ 21,425 |
Fair Value Changes within Asset Categories for which Fair Value Measurements Use Significant Unobservable Inputs (Level 3) Defined Benefit United States Plans and United Kingdom Plans | Fair value changes within asset categories for which fair value measurements use significant unobservable inputs (Level 3) were as follows during 2015 and 2016: (In thousands) Insurance Fair value, December 31, 2014 $ 2,241 Sale proceeds (benefit payments) (168 ) Change in unrealized gain 11 Foreign exchange impact (115 ) Fair value, December 31, 2015 $ 1,969 Sale proceeds (benefit payments) (144 ) Change in unrealized gain 265 Foreign exchange impact (331 ) Fair value, December 31, 2016 $ 1,759 |
Defined Benefit Plan Periodic Costs [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Weighted-Average Assumptions Used to Determine Benefit Obligations/Net Periodic Benefit Costs | The weighted-average assumptions used to determine net periodic benefit costs for years ended December 31 were as follows: United States United Kingdom 2016 2015 2014 2016 2015 2014 Discount rate 4.39 % 4.09 % 4.87 % 4.00 % 3.50 % 4.60 % Expected long-term return on plan assets 7.00 % 7.50 % 7.75 % 4.59 % 4.66 % 5.84 % |
Benefit Obligation [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Weighted-Average Assumptions Used to Determine Benefit Obligations/Net Periodic Benefit Costs | The weighted-average assumptions used to determine benefit obligations at December 31 were as follows: United States United Kingdom 2016 2015 2016 2015 Discount rate 4.17 % 4.39 % 2.60 % 4.00 % |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Payables And Accruals [Abstract] | |
Composition of Accrued Liabilities | The composition of accrued liabilities was as follows: December 31 (In thousands) 2016 2015 Accrued payroll and benefits $ 66,575 $ 53,691 Accrued customer rebates 18,553 16,561 Other accrued liabilities 25,667 25,581 Total accrued liabilities $ 110,795 $ 95,833 |
Other Non-Current Liabilities (
Other Non-Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Composition of Other Non-Current Liabilities | The composition of other non-current liabilities was as follows: December 31 (In thousands) 2016 2015 Deferred revenue $ 1,863 $ 2,988 Environmental and legal matters 22,703 18,258 Deferred compensation liability 53,133 43,042 Pension liability 29,494 41,252 Other non-current liabilities 12,160 9,221 Total other non-current liabilities $ 119,353 $ 114,761 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Operating Segment | The following is segment data for the three years ended December 31, 2016, 2015 and 2014: (In thousands) Surfactants Polymers Specialty Products Segment Totals 2016 Net sales $ 1,181,563 $ 498,826 $ 85,777 $ 1,766,166 Operating income 99,796 96,788 10,698 207,282 Assets 831,324 301,890 75,483 1,208,697 Capital expenditures 64,121 31,890 4,194 100,205 Depreciation and amortization expenses 48,643 20,275 4,204 73,122 2015 Net sales $ 1,205,849 $ 491,488 $ 78,830 $ 1,776,167 Operating income 104,080 80,942 4,397 189,419 Assets 758,524 293,790 72,604 1,124,918 Capital expenditures 79,171 31,309 6,387 116,867 Depreciation and amortization expenses 42,122 19,541 3,659 65,322 2014 Net sales $ 1,296,638 $ 550,966 $ 79,609 $ 1,927,213 Operating income 60,778 60,690 10,487 131,955 Assets 741,677 320,640 67,588 1,129,905 Capital expenditures 70,796 22,409 5,618 98,823 Depreciation and amortization expenses 41,483 18,433 2,792 62,708 |
Reconciliation of Segment Information to Consolidated Financial Statements | Below are reconciliations of segment data to the consolidated financial statements: (In thousands) 2016 2015 2014 Operating income - segment totals $ 207,282 $ 189,419 $ 131,955 Business restructuring and asset impairments (a) (7,064 ) — (4,009 ) Unallocated corporate expenses (b) (74,025 ) (66,629 ) (37,252 ) Total operating income 126,193 122,790 90,694 Interest expense, net (13,205 ) (14,533 ) (11,441 ) Loss from equity in joint ventures — (6,985 ) (5,008 ) Other, net 828 1,584 1,290 Consolidated income before income taxes $ 113,816 $ 102,856 $ 75,535 Assets - segment totals $ 1,208,697 $ 1,124,918 $ 1,129,905 Unallocated corporate assets (c) (d) 145,193 113,474 32,109 Consolidated assets (d) $ 1,353,890 $ 1,238,392 $ 1,162,014 Capital expenditures - segment totals $ 100,205 $ 116,867 $ 98,823 Unallocated corporate expenditures 2,871 2,482 2,996 Consolidated capital expenditures $ 103,076 $ 119,349 $ 101,819 Depreciation and amortization expenses – segment totals $ 73,122 $ 65,322 $ 62,708 Unallocated corporate depreciation expenses 1,845 1,663 1,096 Consolidated depreciation and amortization expenses $ 74,967 $ 66,985 $ 63,804 (a) See Note 22 regarding business restructuring and asset impairment costs. (b) Unallocated corporate expenses primarily comprise corporate administrative expenses (e.g., corporate finance, legal, human resources, information systems, deferred compensation and environmental remediation) that are not included in segment operating income and not used to evaluate segment performance. (c) The changes in unallocated corporate assets between 2016, 2015 and 2014 were primarily attributable to changes in the balance of U.S. cash and cash equivalents, which are not allocated to segments. (d) The 2015 amounts in the noted line items have been changed from the amounts originally reported due to the reclassification of debt issuance costs pursuant to the Company’s adoption of ASU No. 2015-3. See Note 1 for further information. |
Summary of company-wide geographic data | Below is certain Company-wide geographic data for the years ended December 31, 2016, 2015 and 2014: (In thousands) 2016 2015 2014 Net sales (a) United States $ 1,076,259 $ 1,069,526 $ 1,146,405 France 151,031 169,072 183,896 Poland 153,986 150,654 175,862 United Kingdom 86,458 89,757 103,696 Brazil 74,961 63,439 65,165 All other countries 223,471 233,719 252,189 Total $ 1,766,166 $ 1,776,167 $ 1,927,213 Long-lived assets (b) United States $ 411,023 $ 387,744 $ 360,921 Germany 27,475 30,268 36,156 Singapore 36,270 39,181 41,909 Brazil (c) 58,106 26,721 25,991 China 29,508 25,689 10,674 United Kingdom 20,309 22,943 23,040 All other countries 47,670 52,139 57,809 Total $ 630,361 $ 584,685 $ 556,500 (a) Net sales are attributed to countries based on the location of the Company facility making the sales. (b) Includes net property, plant and equipment, goodwill and other intangible assets. (c) The change between 2016 and 2015 was attributable to the acquisition described in Note 20. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | Below is the computation of basic and diluted earnings per share for the years ended December 31, 2016, 2015 and 2014 (see the discussion regarding the adoption of ASU No. 2016-9 and its effect on the calculation of 2016 diluted earnings per share in Note 1): (In thousands, except per share amounts) 2016 2015 2014 Computation of Basic Earnings per Share Net income attributable to Stepan Company $ 86,191 $ 75,968 $ 57,101 Weighted-average number of shares outstanding 22,793 22,730 22,758 Basic earnings per share $ 3.78 $ 3.34 $ 2.51 Computation of Diluted Earnings per Share Net income attributable to Stepan Company $ 86,191 $ 75,968 $ 57,101 Weighted-average number of shares outstanding 22,793 22,730 22,758 Add weighted-average net shares from assumed exercise of options (under treasury share method) ( a ) 159 118 148 Add weighted-average net shares related to unvested stock awards (under treasury share method) 6 3 11 Add weighted-average net shares from assumed exercise of SARs (under treasury share method) 68 1 ─ Add weighted-average contingently issuable net shares related to performance stock awards (under treasury share method) 68 6 ─ Weighted-average shares applicable to diluted earnings 23,094 22,858 22,917 Diluted earnings per share $ 3.73 $ 3.32 $ 2.49 (a ) Options to purchase 43,715, 124,531 and 99,044 shares of common stock were not included in the computations of diluted earnings per share for the years ended December 31, 2016, 2015 and 2014, respectively. The options’ exercise prices were greater than the average market price for the common stock and the effect of the options on earnings per share would have been antidilutive. |
Accumulated Other Comprehensi51
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Summary of Changes in Accumulated Other Comprehensive Income (Loss) | Below is the change in the Company’s accumulated other comprehensive income (loss) (AOCI) balance by component (net of income taxes) for the years ended December 31, 2016, 2015 and 2014: (In thousands) Foreign Currency Translation Adjustments Defined Benefit Pension Plan Adjustments Cash Flow Hedge Adjustments Total Balance at December 31, 2013 $ (10,971 ) $ (18,672 ) $ 115 $ (29,528 ) Other comprehensive income before reclassifications (31,943 ) (24,186 ) 0 (56,129 ) Amounts reclassified from AOCI — 1,709 3 1,712 Net current period other comprehensive income (31,943 ) (22,477 ) 3 (54,417 ) Balance at December 31, 2014 $ (42,914 ) $ (41,149 ) $ 118 $ (83,945 ) Other comprehensive income before reclassifications (45,423 ) 1,311 (49 ) (44,161 ) Amounts reclassified from AOCI — 3,013 5 3,018 Net current period other comprehensive income (45,423 ) 4,324 (44 ) (41,143 ) Balance at December 31, 2015 $ (88,337 ) $ (36,825 ) $ 74 $ (125,088 ) Other comprehensive income before reclassifications (8,438 ) 3,818 (19 ) (4,639 ) Amounts reclassified from AOCI — 2,217 45 2,262 Net current period other comprehensive income (8,438 ) 6,035 26 (2,377 ) Balance at December 31, 2016 $ (96,775 ) $ (30,790 ) $ 100 $ (127,465 ) |
Summary of Amounts Reclassified Out of Accumulated Other Comprehensive Income | Amounts reclassified out of AOCI for the three years ended December 31, 2016, 2015 and 2014, is displayed below: Amounts Reclassified from AOCI (a) (In thousands) Affected Line Item in Consolidated 2016 2015 2014 Statements of Income Amortization of defined pension items: Prior service cost $ (14 ) $ (17 ) $ (20 ) Actuarial loss (3,508 ) (4,757 ) (2,727 ) $ (3,522 ) (4,774 ) (2,747 ) Total before tax (b) 1,305 1,761 1,038 Tax benefit $ (2,217 ) $ (3,013 ) $ (1,709 ) Net of tax Gains and losses on cash flow hedges: Interest rate contracts $ (82 ) $ (22 ) $ (20 ) Interest, net Foreign exchange contracts 9 9 10 Cost of sales (73 ) (13 ) (10 ) Total before tax 28 8 7 Tax benefit $ (45 ) $ (5 ) $ (3 ) Net of tax Total reclassifications for the period $ (2,262 ) $ (3,018 ) $ (1,712 ) Net of tax (a) Amounts in parentheses denote expense to statement of income. (b) This component of accumulated other comprehensive income is included in the computation of net periodic benefit cost (see Note 13 for details regarding net periodic benefit costs for the Company’s U.S. and U.K. defined benefit plans). |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business And Asset Acquisition [Abstract] | |
Summary of Assets Acquired and Liabilities Assumed | The following table summarizes the assets acquired and liabilities assumed: (Dollars in thousands) October 3, 2016 Assets: Current assets $ 5,165 Property, plant and equipment 5,716 Identifiable intangible assets 7,354 Goodwill 14,327 Total assets acquired $ 32,562 Liabilities: Current liabilities $ 408 Deferred tax liability 3,079 Total liabilities assumed $ 3,487 Net assets acquired $ 29,075 |
Business Restructuring (Tables)
Business Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
2016 Restructuring [Member] | Longford Mills [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Reconciliation of Longford Mills Restructuring Liability | Below is a reconciliation of the beginning and ending balances of the Longford Mills restructuring liability: (In thousands) Termination Benefits Other Expense Total Restructuring liability at January 1, 2016 $ — $ — $ — Expense recognized 1,594 1,223 2,817 Amounts paid — (781 ) (781 ) Foreign currency translation (46 ) (5 ) (51 ) Restructuring liability at December 31, 2016 $ 1,548 $ 437 $ 1,985 |
2014 Restructuring [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Reconciliation of Longford Mills Restructuring Liability | The following is a reconciliation of the beginning and ending balances of the restructuring liability: (In thousands) Severance Expense Restructuring liability at December 31, 2014 $ 1,722 Amounts paid (1,695 ) Foreign currency translation (18 ) Expense adjustment (9 ) Restructuring liability at December 31, 2015 $ — |
Selected Quarterly Financial 54
Selected Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data | 2016 Quarter First Second Third Fourth Year Net Sales $ 445,897 $ 454,603 $ 445,030 $ 420,636 $ 1,766,166 Gross Profit 93,499 92,931 83,395 68,720 338,545 Operating Income 44,607 42,916 28,738 9,932 126,193 Interest, net (3,614 ) (3,417 ) (2,824 ) (3,350 ) (13,205 ) Income Before Income Taxes 40,468 39,196 27,143 7,009 113,816 Net Income (a) 27,919 28,501 21,367 8,411 86,198 Net Income Attributable to Stepan Company (a) 27,916 28,496 21,362 8,417 86,191 Per Diluted Share (a) 1.22 1.24 0.92 0.36 3.73 2015 Quarter First Second Third Fourth Year Net Sales $ 460,451 $ 452,414 $ 444,011 $ 419,291 $ 1,776,167 Gross Profit 76,442 79,512 77,598 74,689 308,241 Operating Income 35,178 28,595 38,794 20,223 122,790 Interest, net (4,054 ) (2,869 ) (3,837 ) (3,773 ) (14,533 ) Income Before Income Taxes 30,536 24,146 33,113 15,061 102,856 Net Income 21,286 16,941 24,934 12,876 76,037 Net Income Attributable to Stepan Company 21,270 16,914 24,912 12,872 75,968 Per Diluted Share 0.93 0.74 1.09 0.56 3.32 (a) The amounts for net income, net income attributable to Stepan Company and net income attributable to Stepan Company per diluted share for the first, second and third quarters of 2016 have been changed from the amounts originally reported as a result of the Company’s early adoption of ASU No. 2016-9, Compensation – Stock Compensation (Topic 718): Improvement to Employee Share-Based Payment Accounting. 2016 (In thousands, except per share data) First Second Third Net Income $ 27,657 $ 27,870 $ 20,432 Net Income Attributable to Stepan Company 27,654 27,865 20,427 Per Diluted Share 1.21 1.21 0.89 |
Summary of Significant Accoun55
Summary of Significant Accounting Policies - Additional Information (Detail) MMBTU in Millions | 12 Months Ended | |||
Dec. 31, 2016USD ($)MMBTUCustomerSubsidiary | Dec. 31, 2015USD ($)Customer | Dec. 31, 2014USD ($)Customer | Dec. 31, 2013USD ($) | |
Summary Of Significant Accounting Policy [Line Items] | ||||
Cash and cash equivalents | $ 225,743,000 | $ 176,143,000 | $ 85,215,000 | $ 133,347,000 |
Single customer comprised more than 10 percent of the Company's consolidated net sales | Customer | 0 | 0 | 0 | |
Bad debt allowance | $ 1,917,000 | $ 1,106,000 | $ 4,625,000 | |
Percentage of LIFO Inventory | 66.00% | 72.00% | ||
Cost of maintenance and repairs | $ 51,530,000 | $ 52,549,000 | 55,923,000 | |
Total research and development expenses | $ 34,856,000 | 30,315,000 | 27,236,000 | |
Capitalized Environmental expenditures depreciation period | 10 years | |||
Indefinite-life intangible assets | $ 0 | |||
Number of foreign subsidiaries | Subsidiary | 1 | |||
Unamortized debt issuance cost | $ 1,141,000 | 1,269,000 | ||
New Accounting Pronouncement, Early Adoption [Member] | ASU No. 2016-9 [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Increase in net cash provided by operating activities | 442,000 | 640,000 | ||
Increase in net cash used in financing activities | $ 442,000 | 640,000 | ||
New Accounting Pronouncement, Early Adoption [Member] | ASU No. 2016-9 [Member] | Additional Paid-in Capital [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Cumulative effect adjustment to retained earnings | $ 2,025,000 | |||
Natural Gas [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Volume in derivative contract | MMBTU | 0.8 | |||
Purchased Contract Price | $ 2,285,000 | |||
Non-compete Agreements [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Finite-lived intangible asset, useful life | 5 years | |||
Trademarks [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Finite-lived intangible asset, useful life | 11 years | |||
Supply contracts [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Finite-lived intangible asset, useful life | 4 years | |||
Know-how [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Finite-lived intangible asset, useful life | 8 years | |||
Building [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Lives used for calculating depreciation expense | 30 years | |||
Building Improvements [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Lives used for calculating depreciation expense | 15 years | |||
Minimum [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Percentage of Tax benefit recognized | 50.00% | |||
Minimum [Member] | Patents [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Finite-lived intangible asset, useful life | 10 years | |||
Minimum [Member] | Customer Relationships [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Finite-lived intangible asset, useful life | 10 years | |||
Minimum [Member] | Manufacturing Equipment [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Lives used for calculating depreciation expense | 10 years | |||
Minimum [Member] | Furniture and Fixtures [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Lives used for calculating depreciation expense | 5 years | |||
Minimum [Member] | Vehicles [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Lives used for calculating depreciation expense | 3 years | |||
Minimum [Member] | Computers Equipment And Software [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Lives used for calculating depreciation expense | 3 years | |||
Maximum [Member] | Patents [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Finite-lived intangible asset, useful life | 15 years | |||
Maximum [Member] | Customer Relationships [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Finite-lived intangible asset, useful life | 13 years | |||
Maximum [Member] | Manufacturing Equipment [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Lives used for calculating depreciation expense | 15 years | |||
Maximum [Member] | Furniture and Fixtures [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Lives used for calculating depreciation expense | 10 years | |||
Maximum [Member] | Vehicles [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Lives used for calculating depreciation expense | 5 years | |||
Maximum [Member] | Computers Equipment And Software [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Lives used for calculating depreciation expense | 10 years | |||
Polymers [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Bad debt allowance | $ 2,388,000 | |||
Money Market Funds [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Cash and cash equivalents | $ 38,600,000 | |||
Demand Deposits [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Cash and cash equivalents | 88,900,000 | |||
Non-U.S. Subsidiaries [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Cash and cash equivalents | $ 98,200,000 | |||
Nanjing Stepan Jinling Chemical Limited Liability Company [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Ownership percentage | 80.00% |
Summary of Significant Accoun56
Summary of Significant Accounting Policies - Allowance for Doubtful Accounts and Other Accounts Receivable Allowances (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance For Doubtful Accounts Receivable Rollforward | |||
Allowance, balance at the beginning | $ 8,046 | $ 10,011 | $ 5,945 |
Provision charged to income | 1,917 | 1,106 | 4,625 |
Accounts written off, net of recoveries | (208) | (3,071) | (559) |
Allowance, balance at ending | $ 9,755 | $ 8,046 | $ 10,011 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value Disclosures [Abstract] | ||
Unamortized debt issuance cost | $ 1,141,000 | $ 1,269,000 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Values and Related Carrying Values of Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Carrying value | $ 318,154 | $ 332,623 |
Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value | $ 316,364 | $ 331,183 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Measured on a Recurring Basis at Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Mutual fund assets | $ 24,055 | $ 20,910 |
Derivative assets: | ||
Foreign currency contracts | 453 | 112 |
Total assets at fair value | 24,508 | 21,022 |
Derivative liabilities: | ||
Foreign currency contracts | 469 | 305 |
Interest rate contracts | 53 | |
Total liabilities at fair value | 358 | |
Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Mutual fund assets | 24,055 | 20,910 |
Derivative assets: | ||
Total assets at fair value | 24,055 | 20,910 |
Level 2 [Member] | ||
Derivative assets: | ||
Foreign currency contracts | 453 | 112 |
Total assets at fair value | 453 | 112 |
Derivative liabilities: | ||
Foreign currency contracts | $ 469 | 305 |
Interest rate contracts | 53 | |
Total liabilities at fair value | $ 358 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative notional amount | $ 33,372,000 | $ 31,194,000 |
Cash flow hedges [Member] | Interest rate contracts [Member] | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative notional amount | $ 0 | $ 3,724,000 |
Minimum [Member] | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative foreign currency exchange contracts settlement date | 1 month | |
Maximum [Member] | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative foreign currency exchange contracts settlement date | 3 months |
Goodwill and Other Intangible61
Goodwill and Other Intangible Assets - Schedule of Changes in Carrying Value of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | $ 14,732 | $ 14,969 |
Accumulated impairment loss, Beginning Balance | (3,467) | (3,467) |
Goodwill net, Beginning Balance | 11,265 | 11,502 |
Goodwill acquired | 14,327 | |
Foreign currency translation | (284) | (237) |
Goodwill, Ending Balance | 28,775 | 14,732 |
Accumulated impairment loss, Ending Balance | (3,467) | (3,467) |
Goodwill net, Ending Balance | 25,308 | 11,265 |
Surfactants Segment [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 8,869 | 9,025 |
Accumulated impairment loss, Beginning Balance | (3,467) | (3,467) |
Goodwill net, Beginning Balance | 5,402 | 5,558 |
Goodwill acquired | 14,327 | |
Foreign currency translation | (238) | (156) |
Goodwill, Ending Balance | 22,958 | 8,869 |
Accumulated impairment loss, Ending Balance | (3,467) | (3,467) |
Goodwill net, Ending Balance | 19,491 | 5,402 |
Polymer Segment [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 5,380 | 5,461 |
Goodwill net, Beginning Balance | 5,380 | 5,461 |
Foreign currency translation | (46) | (81) |
Goodwill, Ending Balance | 5,334 | 5,380 |
Goodwill net, Ending Balance | 5,334 | 5,380 |
Specialty Products Segment [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 483 | 483 |
Goodwill net, Beginning Balance | 483 | 483 |
Goodwill, Ending Balance | 483 | 483 |
Goodwill net, Ending Balance | $ 483 | $ 483 |
Goodwill and Other Intangible62
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Impairment of Goodwill | $ 0 | $ 0 | |
Amortization of Intangible Assets, Total | $ 2,845,000 | $ 2,816,000 | $ 2,841,000 |
Goodwill and Other Intangible63
Goodwill and Other Intangible Assets - Components of Other Intangible Assets and Changes in Gross Carrying Values (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Other Finite-Lived Intangible Assets, Gross Carrying Value | $ 34,297 | $ 27,305 | |
Other Finite-Lived Intangible Assets, Accumulated Amortization | 11,958 | 9,348 | |
Patents [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other Finite-Lived Intangible Assets, Gross Carrying Value | 6,947 | 6,947 | |
Other Finite-Lived Intangible Assets, Accumulated Amortization | 3,294 | 2,696 | |
Non-compete Agreements [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other Finite-Lived Intangible Assets, Gross Carrying Value | [1] | 461 | |
Other Finite-Lived Intangible Assets, Accumulated Amortization | [1] | 15 | |
Trademarks [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other Finite-Lived Intangible Assets, Gross Carrying Value | 4,087 | 4,087 | |
Other Finite-Lived Intangible Assets, Accumulated Amortization | 1,525 | 1,150 | |
Customer Lists And Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other Finite-Lived Intangible Assets, Gross Carrying Value | [1] | 12,238 | 8,026 |
Other Finite-Lived Intangible Assets, Accumulated Amortization | [1] | 3,337 | 2,621 |
Know-how [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other Finite-Lived Intangible Assets, Gross Carrying Value | [2] | 8,043 | 8,245 |
Other Finite-Lived Intangible Assets, Accumulated Amortization | [2] | 3,682 | $ 2,881 |
Supply Contract [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other Finite-Lived Intangible Assets, Gross Carrying Value | [1] | 2,521 | |
Other Finite-Lived Intangible Assets, Accumulated Amortization | [1] | $ 105 | |
[1] | See Note 20 for information regarding the intangibles acquired in a business combination. | ||
[2] | Know-how includes intellectual property rights covering proprietary information, written formulae, trade secrets or secret processes, inventions and developmental products (whether patentable or not), discoveries, improvements, compositions, manufacturing processes, manuals, specifications and technical data. |
Goodwill and Other Intangible64
Goodwill and Other Intangible Assets - Estimated Amortization Expense for Identifiable Intangibles Assets (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
For year ended 12/31/17 | $ 3,604 |
For year ended 12/31/18 | 3,604 |
For year ended 12/31/19 | 3,604 |
For year ended 12/31/20 | 3,452 |
For year ended 12/31/21 | $ 2,737 |
Inventories - Composition of In
Inventories - Composition of Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 127,597 | $ 124,481 |
Raw materials | 46,066 | 45,943 |
Total inventories | $ 173,663 | $ 170,424 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
LIFO reserve | $ 25,872,000 | $ 18,171,000 |
Debt - Debt (Detail)
Debt - Debt (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | |||
Debt Instrument [Line Items] | ||||
Total debt | $ 317,013 | $ 331,354 | [1] | |
Less current maturities | 28,154 | 18,806 | [1] | |
Long-term debt | [2] | 288,859 | 312,548 | [1] |
Unsecured private placement 3.95% note [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | $ 99,618 | $ 99,617 | [1] | |
Debt instrument interest rate percentage | 3.95% | 3.95% | ||
Unsecured private placement 3.95% note [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Maturity Dates | 2,021 | 2,021 | ||
Unsecured private placement 3.95% note [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Maturity Dates | 2,027 | 2,027 | ||
Unsecured private placement 3.86% note [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | $ 99,610 | $ 99,560 | [1] | |
Debt instrument interest rate percentage | 3.86% | 3.86% | ||
Unsecured private placement 3.86% note [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Maturity Dates | 2,019 | 2,019 | ||
Unsecured private placement 3.86% note [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Maturity Dates | 2,025 | 2,025 | ||
Unsecured private placement 4.86% note [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | $ 64,775 | $ 64,740 | [1] | |
Debt instrument interest rate percentage | 4.86% | 4.86% | ||
Unsecured private placement 4.86% note [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Maturity Dates | 2,017 | 2,017 | ||
Unsecured private placement 4.86% note [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Maturity Dates | 2,023 | 2,023 | ||
Unsecured private placement 5.88% note [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | $ 34,170 | $ 39,860 | [1] | |
Debt instrument interest rate percentage | 5.88% | 5.88% | ||
Unsecured private placement 5.88% note [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Maturity Dates | 2,017 | 2,017 | ||
Unsecured private placement 5.88% note [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Maturity Dates | 2,022 | 2,022 | ||
Unsecured private placement 5.69% note [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | $ 11,400 | $ 17,096 | [1] | |
Debt instrument interest rate percentage | 5.69% | 5.69% | ||
Unsecured private placement 5.69% note [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Maturity Dates | 2,017 | 2,017 | ||
Unsecured private placement 5.69% note [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Maturity Dates | 2,018 | 2,018 | ||
Debt of foreign subsidiaries Unsecured bank debt, foreign currency [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | $ 432 | $ 4,810 | [1] | |
Maturity Dates | 2,017 | 2,017 | ||
Debt of foreign subsidiaries Unsecured bank term loan, foreign currency [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | [1] | $ 3,724 | ||
Maturity Dates | 2,021 | 2,021 | ||
Debt of foreign subsidiaries Secured bank debt, foreign currency [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | $ 7,008 | $ 1,947 | [1] | |
Maturity Dates | 2,017 | 2,017 | ||
[1] | Certain balances have been reclassified from those originally presented at December 31, 2015, due to the Company’s January 1, 2016, adoption of the new U.S. GAAP guidance regarding the classification of debt issuance costs. See Note 1 for additional information regarding ASU No. 2015-3. | |||
[2] | The 2015 amounts have been changed from the amounts originally reported at December 31, 2015, due to the Company’s January 1, 2016, adoption of the new U.S. accounting guidance regarding the classification of debt issuance costs. See Note 1 to the consolidated financial statements for additional information regarding Accounting Standards Update No. 2015-3. |
Debt - Debt (Parenthetical) (De
Debt - Debt (Parenthetical) (Detail) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Unamortized debt issuance cost | $ 1,141,000 | $ 1,269,000 |
Unsecured private placement 3.95% note [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance cost | 382,000 | 383,000 |
Unsecured private placement 3.86% note [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance cost | 390,000 | 440,000 |
Unsecured private placement 4.86% note [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance cost | 225,000 | 260,000 |
Unsecured private placement 5.88% note [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance cost | 116,000 | 140,000 |
Unsecured private placement 5.69% note [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance cost | $ 28,000 | $ 46,000 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Debt Instrument [Line Items] | |||
Total debt | $ 317,013,000 | $ 331,354,000 | [1] |
Revolving credit agreement | $ 125,000,000 | ||
Line of credit facility, Minimum maturity period | 1 day | ||
Line of credit facility, Maximum maturity period | 180 days | ||
Debt matures in 2017 | $ 28,154,000 | ||
Debt matures in 2018 | 20,714,000 | ||
Debt matures in 2019 | 29,286,000 | ||
Debt matures in 2020 | 29,286,000 | ||
Debt matures in 2021 | 43,572,000 | ||
Debt matures after 2021 | 167,142,000 | ||
Amount of repayments of long-term debt due in next year | 20,714,000 | ||
Amount of repayments of foreign subsidiaries short-term debt due in next year | $ 7,440,000 | ||
Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Facility fee percentage | 0.15% | ||
Minimum [Member] | LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Spread rate | 0.975% | ||
Minimum [Member] | Prime Rate [Member] | |||
Debt Instrument [Line Items] | |||
Spread rate | 0.00% | ||
Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Facility fee percentage | 0.35% | ||
Maximum [Member] | LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Spread rate | 1.525% | ||
Maximum [Member] | Prime Rate [Member] | |||
Debt Instrument [Line Items] | |||
Spread rate | 0.525% | ||
Unsecured Private Placement Notes [Member] | |||
Debt Instrument [Line Items] | |||
Total debt | $ 310,714,000 | ||
Unsecured Private Placement Notes [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate percentage | 3.86% | ||
Maturity Dates | 12 years | ||
Unsecured Private Placement Notes [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate percentage | 5.88% | ||
Maturity Dates | 13 years | ||
Multi currency revolving credit agreement [Member] | |||
Debt Instrument [Line Items] | |||
Revolving credit agreement | $ 125,000,000 | ||
Credit agreement secured date | Jul. 10, 2019 | ||
Debt Outstanding | $ 0 | ||
Letters of Credit Outstanding | 4,802,000 | ||
Unused Revolving credit | 120,198,000 | ||
Unrestricted retained earnings | 157,606,000 | 119,891,000 | |
Debt of foreign subsidiaries Unsecured bank debt and Term Loan, foreign currency [Member] | |||
Debt Instrument [Line Items] | |||
Total debt | 432,000 | ||
Debt of foreign subsidiaries Secured bank debt, foreign currency [Member] | |||
Debt Instrument [Line Items] | |||
Total debt | $ 7,008,000 | $ 1,947,000 | [1] |
[1] | Certain balances have been reclassified from those originally presented at December 31, 2015, due to the Company’s January 1, 2016, adoption of the new U.S. GAAP guidance regarding the classification of debt issuance costs. See Note 1 for additional information regarding ASU No. 2015-3. |
Debt - Schedule of Net Interest
Debt - Schedule of Net Interest Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Interest Income Expense Net [Abstract] | |||||||||||
Interest expense | $ 15,240 | $ 15,488 | $ 12,542 | ||||||||
Interest income | (1,247) | (217) | (262) | ||||||||
Interest expense net of interest income | 13,993 | 15,271 | 12,280 | ||||||||
Capitalized interest | (788) | (738) | (839) | ||||||||
Interest expense, net | $ 3,350 | $ 2,824 | $ 3,417 | $ 3,614 | $ 3,773 | $ 3,837 | $ 2,869 | $ 4,054 | $ 13,205 | $ 14,533 | $ 11,441 |
Leased Properties - Additional
Leased Properties - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Leases [Abstract] | |||
Total rental expense | $ 8,595,000 | $ 7,097,000 | $ 6,660,000 |
Leased Properties - Consolidate
Leased Properties - Consolidated Company Minimum Future Rental Payments Under Operating Leases with Initial or Remaining Noncancelable Lease Terms in Excess of One Year (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Leases [Abstract] | |
2,017 | $ 7,761 |
2,018 | 6,413 |
2,019 | 5,561 |
2,020 | 4,879 |
2,021 | 3,702 |
Subsequent to 2021 | 19,276 |
Total minimum future rental payments | $ 47,592 |
Other, Net - Other Net in Conso
Other, Net - Other Net in Consolidated Statements of Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Nonoperating Income Expense [Abstract] | |||
Foreign exchange gains (losses) | $ (14) | $ 686 | $ (220) |
Investment income | 690 | 877 | 1,269 |
Realized and unrealized gains on investments | 152 | 21 | 241 |
Other, net | $ 828 | $ 1,584 | $ 1,290 |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Taxes on Income and Other Related Income Before Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Federal | |||||||||||
Current | $ 18,811 | $ 7,697 | $ 3,362 | ||||||||
Deferred | (3,192) | 3,890 | 4,338 | ||||||||
State | |||||||||||
Current | 2,273 | 1,559 | 782 | ||||||||
Deferred | (1,171) | (225) | 643 | ||||||||
Foreign | |||||||||||
Current | 14,960 | 14,562 | 9,004 | ||||||||
Deferred | (4,063) | (664) | 325 | ||||||||
Total | 27,618 | 26,819 | 18,454 | ||||||||
Income before Taxes | |||||||||||
Domestic | 64,675 | 48,721 | 34,091 | ||||||||
Foreign | 49,141 | 54,135 | 41,444 | ||||||||
Income Before Provision for Income Taxes | $ 7,009 | $ 27,143 | $ 39,196 | $ 40,468 | $ 15,061 | $ 33,113 | $ 24,146 | $ 30,536 | $ 113,816 | $ 102,856 | $ 75,535 |
Income Taxes - Summary of Varia
Income Taxes - Summary of Variations Between the Effective and Statutory U.S. Federal Income Tax Rates (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Income Tax Disclosure [Abstract] | ||||
Federal income tax provision at statutory tax rate | $ 39,836 | $ 36,000 | $ 26,437 | |
State tax provision on income less applicable federal tax benefit | 716 | 867 | 926 | |
Foreign income taxed at different rates | (6,325) | (5,060) | (5,416) | |
Unrecognized tax benefits | 23 | 1,536 | 241 | |
Domestic production activities deduction | (1,633) | (884) | (312) | |
Nontaxable foreign interest income | (2,030) | (2,106) | (2,435) | |
Stock based compensation, excess tax benefits | [1] | (1,878) | ||
U.S. tax credits | (1,100) | (3,465) | (1,086) | |
Non-deductible expenses and other items, net | [2] | 9 | (69) | 99 |
Total | $ 27,618 | $ 26,819 | $ 18,454 | |
Percentage of Federal income tax provision at statutory tax rate | 35.00% | 35.00% | 35.00% | |
Percentage of State tax provision on income less applicable federal tax benefit | 0.60% | 0.80% | 1.20% | |
Percentage of Foreign income taxed at different rates | (5.60%) | (4.90%) | (7.20%) | |
Percentage of Unrecognized tax benefits | 0.00% | 1.50% | 0.30% | |
Percentage of Domestic production activities deduction | (1.40%) | (0.90%) | (0.40%) | |
Percentage of Nontaxable foreign interest income | (1.80%) | (2.00%) | (3.20%) | |
Percentage of stock based compensation, excess tax benefits | [1] | (1.70%) | ||
Percentage of U.S. tax credits | (1.00%) | (3.40%) | (1.40%) | |
Percentage of Non-deductible expenses and other items, net | [2] | 0.20% | 0.00% | 0.10% |
Percentage of Total income tax provision | 24.30% | 26.10% | 24.40% | |
[1] | Excess tax benefits related to employee share-based payment transactions recognized in 2016 resulting from early adoption of ASU No. 2016-9, as described in Note 1. There is no effect for 2014 and 2015 because the recognition of excess tax benefits in the tax provision is to be done only on a prospective basis, beginning with the year of adopting the new guidance. | |||
[2] | Certain 2014 amounts have been reclassified to conform to the current year presentation. |
Income Taxes - Schedule Showing
Income Taxes - Schedule Showing Tax Effects of Significant Temporary Differences Representing Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred Tax Liabilities: | ||
Depreciation | $ (75,973) | $ (69,975) |
Unrealized foreign exchange loss | (631) | (614) |
Other | (2,756) | (950) |
Deferred Tax Liabilities, Gross | (79,360) | (71,539) |
Deferred Tax Assets: | ||
Pensions | 12,077 | 16,698 |
Deferred revenue | 940 | 1,377 |
Other accruals and reserves | 20,590 | 17,171 |
Inventories | 1,815 | 1,833 |
Legal and environmental accruals | 11,503 | 9,303 |
Deferred compensation | 24,485 | 17,828 |
Bad debt and rebate reserves | 4,195 | 3,685 |
Subsidiaries net operating loss carryforwards | 1,201 | 602 |
Tax credit carryforwards | 1,599 | 1,120 |
Deferred Tax Assets, Gross | 78,405 | 69,617 |
Valuation Allowance | (1,815) | (1,443) |
Net Deferred Tax Liabilities | (2,770) | (3,365) |
Reconciliation to Consolidated Balance Sheet: | ||
Non-current deferred tax assets (in other non-current assets) | 9,727 | 6,090 |
Non-current deferred tax liabilities | $ (12,497) | $ (9,455) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax [Line Items] | ||||
Undistributed earnings of foreign subsidiaries | $ 309,047,000 | $ 266,317,000 | ||
Tax loss carryforwards | 4,655,000 | 2,224,000 | ||
Tax credit carryforwards | 1,599,000 | 1,120,000 | ||
Valuation Allowance | 1,815,000 | 1,443,000 | ||
Unrecognized tax benefits | 1,931,000 | 1,958,000 | $ 464,000 | $ 240,000 |
Unrecognized tax benefits that, if recognized, would impact effective tax rates | 1,921,000 | 1,948,000 | 454,000 | |
Recognition of interest and penalties accrued related to unrecognized tax benefits as income tax expense | 9,000 | 6,000 | $ 6,000 | |
Income tax liability for interest and penalties | 53,000 | $ 44,000 | ||
Income tax return adjustments | 0 | |||
Minimum [Member] | ||||
Income Tax [Line Items] | ||||
Unrecognized tax benefits related to its current uncertain tax positions | 0 | |||
Maximum [Member] | ||||
Income Tax [Line Items] | ||||
Unrecognized tax benefits related to its current uncertain tax positions | $ 1,500,000 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliations of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits, opening balance | $ 1,958 | $ 464 | $ 240 |
Gross increases – tax positions in prior period | 1,526 | ||
Gross increases – current period tax positions | 35 | 29 | 261 |
Foreign currency translation | (43) | (37) | (13) |
Lapse of statute of limitations | (19) | (24) | (24) |
Unrecognized tax benefits, ending balance | $ 1,931 | $ 1,958 | $ 464 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Class Of Stock [Line Items] | |||
Treasury stock, shares | 3,470,084 | 3,428,541 | |
Shares purchased during period | 43,835 | 41,915 | 60,595 |
Treasury stock distributed under deferred compensation plan | 7,587 | ||
Stock purchased to settle employees statutory withholding taxes relates to performance stock awards and deferred compensation distribution | 5,295 | ||
Open Market Repurchases [Member] | |||
Class Of Stock [Line Items] | |||
Shares purchased during period | 43,835 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares of common stock authorized for share based payment awards under 2011 Plan | 2,600,000 | ||
Shares available for grant under the 2011 plan | 1,217,210 | ||
Compensation expenses (income) charged against income | $ 12,618 | $ 4,374 | $ (69) |
Common stock market value, per share | $ 81.48 | $ 49.69 | |
Income tax benefit (expense) recognized in the income statement for share-based compensation arrangements | $ 4,761 | $ 1,654 | (26) |
Proceeds from stock option exercises | $ 4,017 | 777 | 1,754 |
Actual tax benefit recognized for the tax deductions from stock based compensation | $ 442 | $ 640 | |
Stock Option [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | 2 years | ||
Weighted-average grant-date fair values of options awarded | $ 14.70 | $ 15.59 | $ 23.77 |
Intrinsic values of options exercised | $ 6,620 | $ 1,426 | $ 2,071 |
Unrecognized compensation cost | $ 895 | ||
Weighted average period for amortization of unrecognized compensation cost | 1 year 1 month 6 days | ||
Actual tax benefit recognized for the tax deductions from stock based compensation | $ 1,899 | $ 351 | $ 568 |
Stock Option [Member] | Maximum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Period of expiration | 10 years | ||
Stock Option [Member] | Minimum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Period of expiration | 8 years | ||
Performance Stock Award [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Performance stock awards vested | 0 | ||
Stock Awards [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 5,514 | ||
Weighted average period for amortization of unrecognized compensation cost | 1 year 8 months 12 days | ||
Performance stock awards vested | 32,319 | ||
Weighted-average grant-date fair values of awards granted | $ 41.81 | $ 39.11 | $ 59.52 |
Stock Appreciation Rights (SARs) [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Period of expiration | 10 years | ||
Vesting period | 2 years | ||
Unrecognized compensation cost | $ 1,859 | ||
Weighted average period for amortization of unrecognized compensation cost | 1 year 1 month 6 days | ||
Weighted-average grant-date fair values of awards granted | $ 14.69 | $ 15.60 | $ 23.74 |
SARs liability cash-settled | $ 5,832 | $ 2,593 |
Stock-based Compensation - Fair
Stock-based Compensation - Fair Value Assumptions for Stock Options (Detail) - Stock Option [Member] | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected dividend yield | 1.45% | 1.53% | 1.77% |
Expected volatility | 35.62% | 40.32% | 42.04% |
Expected term | 7 years 3 months 18 days | 7 years 3 months 18 days | 7 years 3 months 18 days |
Risk-free interest rate | 1.52% | 1.96% | 2.18% |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Shares, Beginning Balance | 507,084 | ||
Granted, Shares | 103,709 | ||
Exercised, Shares | (167,675) | (45,289) | (67,029) |
Forfeited, Shares | (6,992) | ||
Shares, Ending Balance | 436,126 | 507,084 | |
Vested or expected to vest, Shares | 432,181 | ||
Exercisable, Shares | 258,093 | ||
Weighted Average Exercise Price, Beginning Balance | $ 36.57 | ||
Granted, Weighted Average Exercise Price | 44.03 | ||
Exercised, Weighted Average Exercise Price | 23.95 | ||
Forfeited, Weighted Average Exercise Price | 45.36 | ||
Weighted Average Exercise Price, Ending Balance | 42.99 | $ 36.57 | |
Vested or expected to vest, Weighted Average Exercise Price | 42.68 | ||
Exercisable, Weighted Average Exercise Price | $ 43.12 | ||
Weighted Average Remaining Contractual Term, Ending Balance | 5 years 9 months 18 days | ||
Vested or expected to vest, Weighted Average Remaining Contractual Term | 5 years 10 months 10 days | ||
Exercisable, Weighted Average Remaining Contractual Term | 3 years 9 months 26 days | ||
Aggregate Intrinsic Value, Ending Balance | $ 16,785 | ||
Vested or expected to vest, Aggregate Intrinsic Value | 13,022 | ||
Exercisable, Aggregate Intrinsic Value | $ 9,900 |
Stock-based Compensation - Su83
Stock-based Compensation - Summary of Stock Award Activity (Detail) - Stock Awards [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares, Beginning Balance | 208,503 | ||
Granted, Shares | 142,242 | ||
Vested, Shares | (32,319) | ||
Forfeited, Shares | (61,660) | ||
Shares, Ending Balance | 256,766 | 208,503 | |
Unvested Weighted Average Grant Date Fair Value, Beginning Balance | $ 46.55 | ||
Granted, Weighted Average Grant Date Fair Value | 41.81 | $ 39.11 | $ 59.52 |
Vested, Weighted Average Grant Date Fair Value | 59.41 | ||
Forfeited, Weighted Average Grant Date Fair Value | 53.05 | ||
Unvested Weighted Average Grant Date Fair Value, Ending Balance | $ 40.74 | $ 46.55 |
Stock-based Compensation - Su84
Stock-based Compensation - Summary of SARs Activity (Detail) - Stock Appreciation Rights (SARs) [Member] $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($)$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Shares, Beginning Balance | shares | 389,955 |
Granted, Shares | shares | 215,288 |
Exercised, Shares | shares | (27,596) |
Forfeited, Shares | shares | (24,065) |
Shares, Ending Balance | shares | 553,582 |
Weighted Average Exercise Price, Beginning Balance | $ / shares | $ 50.30 |
Granted, Weighted Average Exercise Price | $ / shares | 43.95 |
Exercised, Weighted Average Exercise Price | $ / shares | 54.17 |
Forfeited, Weighted Average Exercise Price | $ / shares | 34.58 |
Weighted Average Exercise Price, Ending balance | $ / shares | $ 47.81 |
Weighted Average Remaining Contractual Term, Ending balance | 7 years 11 months 9 days |
Aggregate Intrinsic Value, Ending balance | $ | $ 18,642 |
Deferred Compensation - Additio
Deferred Compensation - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Deferred compensation | $ 16,805,000 | $ 6,500,000 | $ (11,903,000) |
Deferred compensation liability | $ 60,328,000 | $ 43,988,000 |
Postretirement Benefit Plans -
Postretirement Benefit Plans - Obligations and Funded Status (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
United States [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Benefit obligation at beginning of year | $ 160,789 | $ 169,407 | |
Interest cost | 6,934 | 6,815 | $ 6,936 |
Actuarial (gain) loss | 1,538 | (9,315) | |
Benefits paid | (6,534) | (6,118) | |
Benefit obligation at end of year | 162,727 | 160,789 | 169,407 |
Fair value of plan assets at beginning of year | 121,835 | 126,369 | |
Actual return on plan assets | 21,612 | 1,374 | |
Employer contributions | 179 | 210 | |
Fair value of plan assets at end of year | 137,092 | 121,835 | 126,369 |
Over (Under) funded status at end of year | (25,635) | (38,954) | |
United Kingdom [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Benefit obligation at beginning of year | 19,950 | 22,983 | |
Interest cost | 733 | 789 | 964 |
Actuarial (gain) loss | 5,614 | (1,763) | |
Benefits paid | (513) | (891) | |
Foreign exchange impact | (3,750) | (1,168) | |
Benefit obligation at end of year | 22,034 | 19,950 | 22,983 |
Fair value of plan assets at beginning of year | 21,425 | 22,858 | |
Actual return on plan assets | 2,758 | 72 | |
Employer contributions | 378 | 605 | |
Foreign exchange impact | (3,712) | (1,219) | |
Fair value of plan assets at end of year | 20,336 | 21,425 | $ 22,858 |
Over (Under) funded status at end of year | $ (1,698) | $ 1,475 |
Postretirement Benefit Plans 87
Postretirement Benefit Plans - Schedule of Amounts Recognized in Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
United States [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Current liability | $ (166) | $ (198) |
Non-current liability | (25,469) | (38,756) |
Net amount recognized | (25,635) | (38,954) |
United Kingdom [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Non-current asset | 1,475 | |
Non-current liability | (1,698) | |
Net amount recognized | $ (1,698) | $ 1,475 |
Postretirement Benefit Plans 88
Postretirement Benefit Plans - Amounts Recognized in Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
United States [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Net actuarial loss | $ 40,022 | $ 54,470 |
United Kingdom [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Net actuarial loss | $ 7,443 | $ 3,764 |
Postretirement Benefit Plans 89
Postretirement Benefit Plans - Information for Pension Plans with Projected Benefit Obligations in Excess of Plan Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
United States [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Projected benefit obligation | $ 162,727 | $ 160,789 |
Accumulated benefit obligation | 162,727 | 160,789 |
Fair value of plan assets | 137,092 | $ 121,835 |
United Kingdom [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Projected benefit obligation | 22,034 | |
Accumulated benefit obligation | 22,034 | |
Fair value of plan assets | $ 20,336 |
Postretirement Benefit Plans 90
Postretirement Benefit Plans - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
United States [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | $ 6,934 | $ 6,815 | $ 6,936 |
Expected return on plan assets | (9,012) | (9,579) | (9,523) |
Amortization of net actuarial loss | 3,386 | 4,534 | 2,687 |
Net periodic benefit cost | 1,308 | 1,770 | 100 |
United Kingdom [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | 733 | 789 | 964 |
Expected return on plan assets | (900) | (1,054) | (1,303) |
Amortization of net actuarial loss | 77 | 179 | |
Net periodic benefit cost | $ (90) | $ (86) | $ (339) |
Postretirement Benefit Plans 91
Postretirement Benefit Plans - Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
United States [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Net actuarial (gain) loss | $ (11,062) | $ (1,110) | $ 35,999 |
Amortization of net actuarial loss | (3,386) | (4,534) | (2,687) |
Total recognized in other comprehensive income | (14,448) | (5,644) | 33,312 |
Total recognized in net periodic benefit cost and other comprehensive income | (13,140) | (3,874) | 33,412 |
United Kingdom [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Net actuarial (gain) loss | 3,756 | (781) | 2,577 |
Amortization of net actuarial loss | (77) | (179) | |
Total recognized in other comprehensive income | 3,679 | (960) | 2,577 |
Total recognized in net periodic benefit cost and other comprehensive income | $ 3,589 | $ (1,046) | $ 2,238 |
Postretirement Benefit Plans 92
Postretirement Benefit Plans - Estimated Amounts Reclassified from Accumulated Other Comprehensive Income into Net Periodic Benefit Cost (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
United States [Member] | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |
Net actuarial loss | $ 3,152 |
United Kingdom [Member] | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |
Net actuarial loss | $ 365 |
Postretirement Benefit Plans 93
Postretirement Benefit Plans - Estimated Future Benefit Payments (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
United States [Member] | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |
2,017 | $ 7,065 |
2,018 | 7,550 |
2,019 | 8,048 |
2,020 | 8,502 |
2,021 | 9,008 |
2022-2026 | 50,435 |
United Kingdom [Member] | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |
2,017 | 491 |
2,018 | 500 |
2,019 | 506 |
2,020 | 517 |
2,021 | 541 |
2022-2026 | $ 3,386 |
Postretirement Benefit Plans 94
Postretirement Benefit Plans - Weighted-Average Assumptions Used To Determine Benefit Obligations (Detail) | Dec. 31, 2016 | Dec. 31, 2015 |
United States [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Discount rate | 4.17% | 4.39% |
United Kingdom [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Discount rate | 2.60% | 4.00% |
Postretirement Benefit Plans 95
Postretirement Benefit Plans - The Weighted Average Assumptions Used to Determine Net Periodic Benefit Costs (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
United States [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Discount rate | 4.39% | 4.09% | 4.87% |
Expected long-term return on plan assets | 7.00% | 7.50% | 7.75% |
United Kingdom [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Discount rate | 4.00% | 3.50% | 4.60% |
Expected long-term return on plan assets | 4.59% | 4.66% | 5.84% |
Postretirement Benefit Plans 96
Postretirement Benefit Plans - Defined Benefit Plans - Additional Information (Detail) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Feb. 23, 2016 | Feb. 18, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Assets gains or losses added for prior year | 80.00% | ||||
Assets gains or losses added for second preceding year | 60.00% | ||||
Assets gains or losses added for third preceding year | 40.00% | ||||
Assets gains or losses added for fourth preceding year | 20.00% | ||||
United States [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Expected long-term rate of return on assets | 7.00% | 7.50% | 7.75% | ||
Commodities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Percentage of target allocation for investment category | 2.00% | ||||
Expected long-term rate of return on assets | 2.20% | ||||
U.S Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Common shares sold to the Company's ESOP trust | 56,894 | 39,360 | |||
Expected payment related to qualified plan | $ 0 | ||||
Expected payment related to unqualified plan | $ 166,000 | ||||
U.K Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Percentage of premium estimated return for equities and properties to risk free rate | 3.00% | ||||
Percentage of long term return in cash | 4.00% | ||||
Expected payment related to qualified plan | $ 300,000 | ||||
Equities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Percentage of target allocation for investment category | 34.00% | ||||
Expected long-term rate of return on assets | 7.32% | ||||
Equities [Member] | U.K Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Percentage of target allocation for investment category | 58.00% | ||||
Debt Securities [Member] | U.S Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Percentage of target allocation for investment category | 35.00% | ||||
Debt Securities [Member] | U.K Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Percentage of target allocation for investment category | 30.00% | ||||
Real Estate Fund [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Percentage of target allocation for investment category | 4.00% | ||||
Expected long-term rate of return on assets | 4.80% | ||||
Real Estate Fund [Member] | U.K Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Percentage of target allocation for investment category | 3.00% | ||||
Employer Securities [Member] | U.S Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Percentage of target allocation for investment category | 25.00% | ||||
Insurance Contracts [Member] | U.K Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Percentage of target allocation for investment category | 8.00% | ||||
Cash [Member] | U.K Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Percentage of target allocation for investment category | 1.00% | ||||
U.S. and international equities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Expected long-term rate of return on assets | 4.62% |
Postretirement Benefit Plans 97
Postretirement Benefit Plans - Company's Asset Allocations for its U.S. Pension Plans by Asset Category (Detail) - United States [Member] - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | |||
Total | $ 137,092 | $ 121,835 | $ 126,369 |
Commodities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 2,523 | 1,481 | |
Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 99,872 | 76,708 | |
Level 1 [Member] | Commodities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 2,523 | 1,481 | |
Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 37,220 | 45,127 | |
Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 3,908 | 1,989 | |
Cash and Cash Equivalents [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 3,633 | ||
Cash and Cash Equivalents [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 275 | 1,989 | |
U.S. Equities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 29,390 | 33,076 | |
U.S. Equities [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 29,390 | 33,076 | |
Non-U.S. Equities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 14,637 | 10,630 | |
Non-U.S. Equities [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 14,637 | 10,630 | |
Employer Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 36,018 | 24,792 | |
Employer Securities [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 36,018 | 24,792 | |
Equities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 80,045 | 68,498 | |
Equities [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 80,045 | 68,498 | |
U.S. Corporate Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 28,278 | 26,389 | |
U.S. Corporate Bonds [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 28,278 | 26,389 | |
U.S. Government and Agency Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 9,280 | 9,736 | |
U.S. Government and Agency Bonds [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 8,309 | 365 | |
U.S. Government and Agency Bonds [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 971 | 9,371 | |
Other Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 7,696 | 7,378 | |
Other Bonds [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 7,696 | 7,378 | |
Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 45,254 | 43,503 | |
Debt Securities [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 8,309 | 365 | |
Debt Securities [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 36,945 | 43,138 | |
Real Estate Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 5,362 | 5,222 | |
Real Estate Fund [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 5,362 | 5,222 | |
Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 1,142 | ||
Other | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 1,142 | ||
Mutual Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 7,885 | 7,845 | |
Mutual Funds | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | $ 7,885 | $ 7,845 |
Postretirement Benefit Plans 98
Postretirement Benefit Plans - Company's Asset Allocations for its U.K. Pension Plans by Asset Category (Detail) - United Kingdom [Member] - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | |||
Total | $ 20,336 | $ 21,425 | $ 22,858 |
Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 243 | 833 | |
Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 18,334 | 18,623 | |
Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 1,759 | 1,969 | |
Cash [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 243 | 833 | |
Cash [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 243 | 833 | |
Pooled Pension Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 11,760 | 12,397 | |
Pooled Pension Funds [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 11,760 | 12,397 | |
Pooled Fixed Pension Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 6,015 | 5,740 | |
Pooled Fixed Pension Funds [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 6,015 | 5,740 | |
Real Estate Pooled Pension Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 559 | 486 | |
Real Estate Pooled Pension Funds [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 559 | 486 | |
Insurance Contracts [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 1,759 | 1,969 | |
Insurance Contracts [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | $ 1,759 | $ 1,969 |
Postretirement Benefit Plans 99
Postretirement Benefit Plans - Fair Value Changes Within Asset Categories for which Fair Value Measurements Use Significant Unobservable Inputs Level 3 (Detail) - Insurance Contracts [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | $ 1,969 | $ 2,241 |
Sale proceeds (benefit payments) | (144) | (168) |
Change in unrealized gain | 265 | 11 |
Foreign exchange impact | (331) | (115) |
Ending balance | $ 1,759 | $ 1,969 |
Postretirement Benefit Plans100
Postretirement Benefit Plans - Defined Contribution Plan Expenses for the Company's Retirement Savings Plans and Profit Sharing Plan (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Total defined contribution expense | $ 11,132 | $ 9,616 | $ 8,184 |
Retirement Savings Plans [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Total defined contribution expense | 4,902 | 4,644 | 4,565 |
Profit Sharing Plan [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Total defined contribution expense | $ 6,230 | $ 4,972 | $ 3,619 |
Postretirement Benefit Plans101
Postretirement Benefit Plans - Defined Contribution Plans - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Supplemental plan liability balances | $ 1,767 | $ 1,827 | |
Defined contribution plan expense | 11,132 | 9,616 | $ 8,184 |
Statutory Plans [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plan expense | 290 | 1,375 | $ 145 |
Defined Contribution Plans [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Balance of trust assets | $ 1,692 | $ 1,762 |
Accrued Liabilities - Compositi
Accrued Liabilities - Composition of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Payables And Accruals [Abstract] | ||
Accrued payroll and benefits | $ 66,575 | $ 53,691 |
Accrued customer rebates | 18,553 | 16,561 |
Other accrued liabilities | 25,667 | 25,581 |
Total accrued liabilities | $ 110,795 | $ 95,833 |
Other Non-Current Liabilities -
Other Non-Current Liabilities - Statement of Composition of Other Non Current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Other Liabilities Disclosure [Abstract] | ||
Deferred revenue | $ 1,863 | $ 2,988 |
Environmental and legal matters | 22,703 | 18,258 |
Deferred compensation liability | 53,133 | 43,042 |
Pension liability | 29,494 | 41,252 |
Other non-current liabilities | 12,160 | 9,221 |
Total other non-current liabilities | $ 119,353 | $ 114,761 |
Contingencies - Additional Info
Contingencies - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Site Contingency [Line Items] | ||
Environmental and legal losses | $ 25,800,000 | $ 20,900,000 |
Cash outlays related to legal and environmental matters | $ 1,400,000 | 2,700,000 |
Contribution for future response costs | 5.00% | |
Payment of environmental response costs | $ 2,500,000 | |
VAT inflation, penalty and interest charges | 0 | $ 0 |
Minimum [Member] | ||
Site Contingency [Line Items] | ||
Environmental and legal losses | 25,700,000 | |
Maximum [Member] | ||
Site Contingency [Line Items] | ||
Environmental and legal losses | $ 46,500,000 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2016Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Reporting - Operating S
Segment Reporting - Operating Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net sales | $ 420,636 | $ 445,030 | $ 454,603 | $ 445,897 | $ 419,291 | $ 444,011 | $ 452,414 | $ 460,451 | $ 1,766,166 | [1] | $ 1,776,167 | [1] | $ 1,927,213 | [1] | |
Operating income | 9,932 | $ 28,738 | $ 42,916 | $ 44,607 | 20,223 | $ 38,794 | $ 28,595 | $ 35,178 | 126,193 | 122,790 | 90,694 | ||||
Assets | [2] | 1,353,890 | 1,238,392 | 1,353,890 | 1,238,392 | 1,162,014 | |||||||||
Capital expenditures | 103,076 | 119,349 | 101,819 | ||||||||||||
Depreciation and amortization expenses | 74,967 | 66,985 | 63,804 | ||||||||||||
Operating Segments [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net sales | 1,766,166 | 1,776,167 | 1,927,213 | ||||||||||||
Operating income | 207,282 | 189,419 | 131,955 | ||||||||||||
Assets | 1,208,697 | 1,124,918 | 1,208,697 | 1,124,918 | 1,129,905 | ||||||||||
Capital expenditures | 100,205 | 116,867 | 98,823 | ||||||||||||
Depreciation and amortization expenses | 73,122 | 65,322 | 62,708 | ||||||||||||
Surfactants [Member] | Operating Segments [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net sales | 1,181,563 | 1,205,849 | 1,296,638 | ||||||||||||
Operating income | 99,796 | 104,080 | 60,778 | ||||||||||||
Assets | 831,324 | 758,524 | 831,324 | 758,524 | 741,677 | ||||||||||
Capital expenditures | 64,121 | 79,171 | 70,796 | ||||||||||||
Depreciation and amortization expenses | 48,643 | 42,122 | 41,483 | ||||||||||||
Polymers [Member] | Operating Segments [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net sales | 498,826 | 491,488 | 550,966 | ||||||||||||
Operating income | 96,788 | 80,942 | 60,690 | ||||||||||||
Assets | 301,890 | 293,790 | 301,890 | 293,790 | 320,640 | ||||||||||
Capital expenditures | 31,890 | 31,309 | 22,409 | ||||||||||||
Depreciation and amortization expenses | 20,275 | 19,541 | 18,433 | ||||||||||||
Specialty Products [Member] | Operating Segments [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net sales | 85,777 | 78,830 | 79,609 | ||||||||||||
Operating income | 10,698 | 4,397 | 10,487 | ||||||||||||
Assets | $ 75,483 | $ 72,604 | 75,483 | 72,604 | 67,588 | ||||||||||
Capital expenditures | 4,194 | 6,387 | 5,618 | ||||||||||||
Depreciation and amortization expenses | $ 4,204 | $ 3,659 | $ 2,792 | ||||||||||||
[1] | Net sales are attributed to countries based on the location of the Company facility making the sales. | ||||||||||||||
[2] | The 2015 amounts in the noted line items have been changed from the amounts originally reported due to the reclassification of debt issuance costs pursuant to the Company’s adoption of ASU No. 2015-3. See Note 1 for further information. |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation of Segment Information to Consolidated Financial Statements (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Operating income | $ 9,932 | $ 28,738 | $ 42,916 | $ 44,607 | $ 20,223 | $ 38,794 | $ 28,595 | $ 35,178 | $ 126,193 | $ 122,790 | $ 90,694 | |
Business restructuring and asset impairments | (7,064) | (4,009) | ||||||||||
Interest expense, net | (3,350) | (2,824) | (3,417) | (3,614) | (3,773) | (3,837) | (2,869) | (4,054) | (13,205) | (14,533) | (11,441) | |
Loss from equity in joint ventures | (6,985) | (5,008) | ||||||||||
Other, net | 828 | 1,584 | 1,290 | |||||||||
Consolidated income before income taxes | 7,009 | $ 27,143 | $ 39,196 | $ 40,468 | 15,061 | $ 33,113 | $ 24,146 | $ 30,536 | 113,816 | 102,856 | 75,535 | |
Assets | [1] | 1,353,890 | 1,238,392 | 1,353,890 | 1,238,392 | 1,162,014 | ||||||
Capital expenditures | 103,076 | 119,349 | 101,819 | |||||||||
Depreciation and amortization | 74,967 | 66,985 | 63,804 | |||||||||
Operating Segments [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating income | 207,282 | 189,419 | 131,955 | |||||||||
Assets | 1,208,697 | 1,124,918 | 1,208,697 | 1,124,918 | 1,129,905 | |||||||
Capital expenditures | 100,205 | 116,867 | 98,823 | |||||||||
Depreciation and amortization | 73,122 | 65,322 | 62,708 | |||||||||
Segment Reconciling Items [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Business restructuring and asset impairments | [2] | (7,064) | (4,009) | |||||||||
Unallocated corporate expenses | [3] | (74,025) | (66,629) | (37,252) | ||||||||
Unallocated corporate assets | [1],[4] | $ 145,193 | $ 113,474 | 145,193 | 113,474 | 32,109 | ||||||
Unallocated corporate expenditures | 2,871 | 2,482 | 2,996 | |||||||||
Unallocated corporate depreciation expenses | $ 1,845 | $ 1,663 | $ 1,096 | |||||||||
[1] | The 2015 amounts in the noted line items have been changed from the amounts originally reported due to the reclassification of debt issuance costs pursuant to the Company’s adoption of ASU No. 2015-3. See Note 1 for further information. | |||||||||||
[2] | See Note 22 regarding business restructuring and asset impairment costs. | |||||||||||
[3] | Unallocated corporate expenses primarily comprise corporate administrative expenses (e.g., corporate finance, legal, human resources, information systems, deferred compensation and environmental remediation) that are not included in segment operating income and not used to evaluate segment performance. | |||||||||||
[4] | The changes in unallocated corporate assets between 2016, 2015 and 2014 were primarily attributable to changes in the balance of U.S. cash and cash equivalents, which are not allocated to segments. |
Segment Reporting - Summary of
Segment Reporting - Summary of Company Wide Geographic Data (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||||
Schedule Of Geographical Segments [Line Items] | |||||||||||||||
Net sales | $ 420,636 | $ 445,030 | $ 454,603 | $ 445,897 | $ 419,291 | $ 444,011 | $ 452,414 | $ 460,451 | $ 1,766,166 | [1] | $ 1,776,167 | [1] | $ 1,927,213 | [1] | |
Long-lived assets | [2] | 630,361 | 584,685 | 630,361 | 584,685 | 556,500 | |||||||||
United States [Member] | |||||||||||||||
Schedule Of Geographical Segments [Line Items] | |||||||||||||||
Net sales | [1] | 1,076,259 | 1,069,526 | 1,146,405 | |||||||||||
Long-lived assets | [2] | 411,023 | 387,744 | 411,023 | 387,744 | 360,921 | |||||||||
France [Member] | |||||||||||||||
Schedule Of Geographical Segments [Line Items] | |||||||||||||||
Net sales | [1] | 151,031 | 169,072 | 183,896 | |||||||||||
Poland [Member] | |||||||||||||||
Schedule Of Geographical Segments [Line Items] | |||||||||||||||
Net sales | [1] | 153,986 | 150,654 | 175,862 | |||||||||||
United Kingdom [Member] | |||||||||||||||
Schedule Of Geographical Segments [Line Items] | |||||||||||||||
Net sales | [1] | 86,458 | 89,757 | 103,696 | |||||||||||
Long-lived assets | [2] | 20,309 | 22,943 | 20,309 | 22,943 | 23,040 | |||||||||
All Other Countries [Member] | |||||||||||||||
Schedule Of Geographical Segments [Line Items] | |||||||||||||||
Net sales | [1] | 223,471 | 233,719 | 252,189 | |||||||||||
Long-lived assets | [2] | 47,670 | 52,139 | 47,670 | 52,139 | 57,809 | |||||||||
Brazil [Member] | |||||||||||||||
Schedule Of Geographical Segments [Line Items] | |||||||||||||||
Net sales | [1] | 74,961 | 63,439 | 65,165 | |||||||||||
Long-lived assets | [2],[3] | 58,106 | 26,721 | 58,106 | 26,721 | 25,991 | |||||||||
Germany [Member] | |||||||||||||||
Schedule Of Geographical Segments [Line Items] | |||||||||||||||
Long-lived assets | [2] | 27,475 | 30,268 | 27,475 | 30,268 | 36,156 | |||||||||
Singapore [Member] | |||||||||||||||
Schedule Of Geographical Segments [Line Items] | |||||||||||||||
Long-lived assets | [2] | 36,270 | 39,181 | 36,270 | 39,181 | 41,909 | |||||||||
China [Member] | |||||||||||||||
Schedule Of Geographical Segments [Line Items] | |||||||||||||||
Long-lived assets | [2] | $ 29,508 | $ 25,689 | $ 29,508 | $ 25,689 | $ 10,674 | |||||||||
[1] | Net sales are attributed to countries based on the location of the Company facility making the sales. | ||||||||||||||
[2] | Includes net property, plant and equipment, goodwill and other intangible assets. | ||||||||||||||
[3] | The change between 2016 and 2015 was attributable to the acquisition described in Note 20. |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||
Dec. 31, 2016 | [1] | Sep. 30, 2016 | [1] | Jun. 30, 2016 | [1] | Mar. 31, 2016 | [1] | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Computation of Basic Earnings per Share | |||||||||||||||||
Net income attributable to Stepan Company | $ 8,417 | $ 21,362 | $ 28,496 | $ 27,916 | $ 12,872 | $ 24,912 | $ 16,914 | $ 21,270 | $ 86,191 | [1] | $ 75,968 | $ 57,101 | |||||
Weighted-average number of shares outstanding | 22,793 | 22,730 | 22,758 | ||||||||||||||
Basic earnings per share | $ 3.78 | $ 3.34 | $ 2.51 | ||||||||||||||
Computation of Diluted Earnings per Share | |||||||||||||||||
Net income attributable to Stepan Company | $ 86,191 | $ 75,968 | $ 57,101 | ||||||||||||||
Weighted-average number of shares outstanding | 22,793 | 22,730 | 22,758 | ||||||||||||||
Add weighted-average net shares issuable from assumed exercise of options (under treasury share method) | [2] | 159 | 118 | 148 | |||||||||||||
Add weighted-average net shares related to unvested stock awards (under treasury share method) | 6 | 3 | 11 | ||||||||||||||
Weighted-average shares applicable to diluted earnings | 23,094 | 22,858 | 22,917 | ||||||||||||||
Diluted earnings per share | $ 0.36 | $ 0.92 | $ 1.24 | $ 1.22 | $ 0.56 | $ 1.09 | $ 0.74 | $ 0.93 | $ 3.73 | [1] | $ 3.32 | $ 2.49 | |||||
Performance Stock Award [Member] | |||||||||||||||||
Computation of Diluted Earnings per Share | |||||||||||||||||
Add weighted-average net shares issuable from assumed exercise of options (under treasury share method) | 68 | 6 | |||||||||||||||
Stock Appreciation Rights (SARs) [Member] | |||||||||||||||||
Computation of Diluted Earnings per Share | |||||||||||||||||
Add weighted-average net shares issuable from assumed exercise of options (under treasury share method) | 68 | 1 | |||||||||||||||
[1] | The amounts for net income, net income attributable to Stepan Company and net income attributable to Stepan Company per diluted share for the first, second and third quarters of 2016 have been changed from the amounts originally reported as a result of the Company’s early adoption of ASU No. 2016-9, Compensation – Stock Compensation (Topic 718): Improvement to Employee Share-Based Payment Accounting. See Note 1 for additional information regarding ASU No. 2016-9. Below are the originally reported amounts for the items that changed: 2016 (In thousands, except per share data) First Second Third Net Income $27,657 $27,870 $20,432 Net Income Attributable to Stepan Company 27,654 27,865 20,427 Per Diluted Share 1.21 1.21 0.89 | ||||||||||||||||
[2] | Options to purchase 43,715, 124,531 and 99,044 shares of common stock were not included in the computations of diluted earnings per share for the years ended December 31, 2016, 2015 and 2014, respectively. The options’ exercise prices were greater than the average market price for the common stock and the effect of the options on earnings per share would have been antidilutive. |
Earnings Per Share - Computa110
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Parenthetical) (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||
Options to purchase shares of common stock not included in the computations of diluted earnings per share | 43,715 | 124,531 | 99,044 |
Accumulated Other Comprehens111
Accumulated Other Comprehensive Income (Loss) - Summary of Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | $ 556,984 | ||
Other comprehensive income before reclassifications | (4,639) | $ (44,161) | $ (56,129) |
Amounts reclassified from AOCI | 2,262 | 3,018 | 1,712 |
Net current period other comprehensive income | (2,377) | (41,143) | (54,417) |
Ending Balance | 634,604 | 556,984 | |
Foreign Currency Translation Adjustments [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | (88,337) | (42,914) | (10,971) |
Other comprehensive income before reclassifications | (8,438) | (45,423) | (31,943) |
Net current period other comprehensive income | (8,438) | (45,423) | (31,943) |
Ending Balance | (96,775) | (88,337) | (42,914) |
Defined Benefit Pension Plan Adjustments [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | (36,825) | (41,149) | (18,672) |
Other comprehensive income before reclassifications | 3,818 | 1,311 | (24,186) |
Amounts reclassified from AOCI | 2,217 | 3,013 | 1,709 |
Net current period other comprehensive income | 6,035 | 4,324 | (22,477) |
Ending Balance | (30,790) | (36,825) | (41,149) |
Cash Flow Hedge Adjustments [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | 74 | 118 | 115 |
Other comprehensive income before reclassifications | (19) | (49) | 0 |
Amounts reclassified from AOCI | 45 | 5 | 3 |
Net current period other comprehensive income | 26 | (44) | 3 |
Ending Balance | 100 | 74 | 118 |
AOCI Attributable to Parent [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | (125,088) | (83,945) | (29,528) |
Ending Balance | $ (127,465) | $ (125,088) | $ (83,945) |
Accumulated Other Comprehens112
Accumulated Other Comprehensive Income (Loss) - Summary of Amounts Reclassifications Out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Income Before Provision for Income Taxes | $ 7,009 | $ 27,143 | $ 39,196 | $ 40,468 | $ 15,061 | $ 33,113 | $ 24,146 | $ 30,536 | $ 113,816 | $ 102,856 | $ 75,535 | |
Tax benefit | (27,618) | (26,819) | (18,454) | |||||||||
Interest, net | $ (3,350) | $ (2,824) | $ (3,417) | $ (3,614) | $ (3,773) | $ (3,837) | $ (2,869) | $ (4,054) | (13,205) | (14,533) | (11,441) | |
Cost of Sales | 1,427,621 | 1,467,926 | 1,677,650 | |||||||||
Defined Benefit Pension Plan Adjustments [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member] | ||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Prior service cost | [1] | (14) | (17) | (20) | ||||||||
Actuarial loss | [1] | (3,508) | (4,757) | (2,727) | ||||||||
Income Before Provision for Income Taxes | [1],[2] | (3,522) | (4,774) | (2,747) | ||||||||
Tax benefit | [1] | 1,305 | 1,761 | 1,038 | ||||||||
Income applicable to common stock | [1] | (2,217) | (3,013) | (1,709) | ||||||||
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] | (73) | (13) | (10) | ||||||||
Tax benefit | [1] | 28 | 8 | 7 | ||||||||
Income applicable to common stock | [1] | (45) | (5) | (3) | ||||||||
Cash Flow Hedge Adjustments [Member] | Interest rate contracts [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member] | ||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Interest, net | [1] | (82) | (22) | (20) | ||||||||
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] | 9 | 9 | 10 | ||||||||
Accumulated Other Comprehensive Income (Loss) [Member] | ||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Income applicable to common stock | [1] | $ (2,262) | $ (3,018) | $ (1,712) | ||||||||
[1] | Amounts in parentheses denote expense to statement of income. | |||||||||||
[2] | This component of accumulated other comprehensive income is included in the computation of net periodic benefit cost (see Note 13 for details regarding net periodic benefit costs for the Company’s U.S. and U.K. defined benefit plans). |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) | Oct. 03, 2016USD ($)CustomerT | Oct. 03, 2016BRL | Jun. 15, 2015USD ($)T | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Oct. 03, 2016BRLCustomerT | ||||||||
Business And Asset Acquisition [Line Items] | |||||||||||||||||||||||
Paid from cash on hand | $ 23,510,000 | $ 5,133,000 | |||||||||||||||||||||
Net sales | $ 420,636,000 | $ 445,030,000 | $ 454,603,000 | $ 445,897,000 | $ 419,291,000 | $ 444,011,000 | $ 452,414,000 | $ 460,451,000 | 1,766,166,000 | [1] | 1,776,167,000 | [1] | $ 1,927,213,000 | [1] | |||||||||
Net income | 8,417,000 | [2] | $ 21,362,000 | [2] | $ 28,496,000 | [2] | $ 27,916,000 | [2] | 12,872,000 | $ 24,912,000 | $ 16,914,000 | $ 21,270,000 | 86,191,000 | [2] | 75,968,000 | 57,101,000 | |||||||
Goodwill | 25,308,000 | 11,265,000 | 25,308,000 | 11,265,000 | 11,502,000 | ||||||||||||||||||
Asset acquisition purchase price | $ 103,076,000 | 119,349,000 | 101,819,000 | ||||||||||||||||||||
Sun Products Corporation's (SUN's) Pasadena, Texas [Member] | |||||||||||||||||||||||
Business And Asset Acquisition [Line Items] | |||||||||||||||||||||||
Asset acquisition purchase price | 13,000,000 | ||||||||||||||||||||||
Acquisition of land | 3,377,000 | ||||||||||||||||||||||
Acquisition of manufacturing assets | 9,623,000 | ||||||||||||||||||||||
Non-compete Agreements [Member] | |||||||||||||||||||||||
Business And Asset Acquisition [Line Items] | |||||||||||||||||||||||
Amortization periods for the identifiable intangible assets at the time of acquisition | 5 years | ||||||||||||||||||||||
Minimum [Member] | Customer Relationships [Member] | |||||||||||||||||||||||
Business And Asset Acquisition [Line Items] | |||||||||||||||||||||||
Amortization periods for the identifiable intangible assets at the time of acquisition | 10 years | ||||||||||||||||||||||
Maximum [Member] | Customer Relationships [Member] | |||||||||||||||||||||||
Business And Asset Acquisition [Line Items] | |||||||||||||||||||||||
Amortization periods for the identifiable intangible assets at the time of acquisition | 13 years | ||||||||||||||||||||||
Brazil [Member] | |||||||||||||||||||||||
Business And Asset Acquisition [Line Items] | |||||||||||||||||||||||
Net sales | [1] | $ 74,961,000 | 63,439,000 | 65,165,000 | |||||||||||||||||||
Surfactants [Member] | |||||||||||||||||||||||
Business And Asset Acquisition [Line Items] | |||||||||||||||||||||||
Goodwill | $ 19,491,000 | $ 5,402,000 | $ 19,491,000 | 5,402,000 | $ 5,558,000 | ||||||||||||||||||
Tebras And PBC [Member] | |||||||||||||||||||||||
Business And Asset Acquisition [Line Items] | |||||||||||||||||||||||
Acquisition of intangible assets | $ 7,354,000 | ||||||||||||||||||||||
Acquisition of property, plant and equipment | 5,716,000 | ||||||||||||||||||||||
Acquisition of liabilities | 3,487,000 | ||||||||||||||||||||||
Goodwill | 14,327,000 | ||||||||||||||||||||||
Tebras And PBC [Member] | Customer Relationships [Member] | |||||||||||||||||||||||
Business And Asset Acquisition [Line Items] | |||||||||||||||||||||||
Acquisition of intangible assets | 4,331,000 | ||||||||||||||||||||||
Amortization periods for the identifiable intangible assets at the time of acquisition | 13 years | ||||||||||||||||||||||
Tebras And PBC [Member] | Supply Contract [Member] | |||||||||||||||||||||||
Business And Asset Acquisition [Line Items] | |||||||||||||||||||||||
Acquisition of intangible assets | 2,555,000 | ||||||||||||||||||||||
Amortization periods for the identifiable intangible assets at the time of acquisition | 4 years | ||||||||||||||||||||||
Tebras And PBC [Member] | Non-compete Agreements [Member] | |||||||||||||||||||||||
Business And Asset Acquisition [Line Items] | |||||||||||||||||||||||
Acquisition of intangible assets | 468,000 | ||||||||||||||||||||||
Amortization periods for the identifiable intangible assets at the time of acquisition | 5 years | ||||||||||||||||||||||
Tebras And PBC [Member] | Brazil [Member] | |||||||||||||||||||||||
Business And Asset Acquisition [Line Items] | |||||||||||||||||||||||
Net sales | 28,000,000 | ||||||||||||||||||||||
Tebras And PBC [Member] | Brazil [Member] | Maximum [Member] | |||||||||||||||||||||||
Business And Asset Acquisition [Line Items] | |||||||||||||||||||||||
Net income | $ 2,000,000 | ||||||||||||||||||||||
Tebras And PBC [Member] | Surfactants [Member] | |||||||||||||||||||||||
Business And Asset Acquisition [Line Items] | |||||||||||||||||||||||
Acquisition-related expenses | $ 250,000 | ||||||||||||||||||||||
Tebras And PBC [Member] | Surfactants [Member] | Brazil [Member] | |||||||||||||||||||||||
Business And Asset Acquisition [Line Items] | |||||||||||||||||||||||
Capacity of production facility | T | 25,000 | 25,000 | |||||||||||||||||||||
Acquisitions purchase price, including adjustments for working capital | $ 29,075,000 | BRL 93,309,000 | |||||||||||||||||||||
Paid from cash on hand | 21,812,000 | BRL 70,000,000 | |||||||||||||||||||||
Deposited in escrow | 2,804,000 | 9,000,000 | |||||||||||||||||||||
Unpaid working capital adjustments | $ 4,459,000 | BRL 14,309,000 | |||||||||||||||||||||
Tebras And PBC [Member] | Surfactants [Member] | Brazil [Member] | Minimum [Member] | |||||||||||||||||||||||
Business And Asset Acquisition [Line Items] | |||||||||||||||||||||||
Number of customers | Customer | 1,200 | 1,200 | |||||||||||||||||||||
Procter and Gamble Company [Member] | Brazil [Member] | |||||||||||||||||||||||
Business And Asset Acquisition [Line Items] | |||||||||||||||||||||||
Capacity of production facility | T | 30,000 | ||||||||||||||||||||||
Paid from cash on hand | $ 5,133,000 | ||||||||||||||||||||||
Acquisition of intangible assets | 0 | ||||||||||||||||||||||
Acquisition of property, plant and equipment | 6,007,000 | ||||||||||||||||||||||
Acquisition of liabilities | 874,000 | ||||||||||||||||||||||
Goodwill | $ 0 | ||||||||||||||||||||||
[1] | Net sales are attributed to countries based on the location of the Company facility making the sales. | ||||||||||||||||||||||
[2] | The amounts for net income, net income attributable to Stepan Company and net income attributable to Stepan Company per diluted share for the first, second and third quarters of 2016 have been changed from the amounts originally reported as a result of the Company’s early adoption of ASU No. 2016-9, Compensation – Stock Compensation (Topic 718): Improvement to Employee Share-Based Payment Accounting. See Note 1 for additional information regarding ASU No. 2016-9. Below are the originally reported amounts for the items that changed: 2016 (In thousands, except per share data) First Second Third Net Income $27,657 $27,870 $20,432 Net Income Attributable to Stepan Company 27,654 27,865 20,427 Per Diluted Share 1.21 1.21 0.89 |
Acquisitions - Summary of Asset
Acquisitions - Summary of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Oct. 03, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets: | ||||
Goodwill | $ 25,308 | $ 11,265 | $ 11,502 | |
Tebras And PBC [Member] | ||||
Assets: | ||||
Current assets | $ 5,165 | |||
Property, plant and equipment | 5,716 | |||
Identifiable intangible assets | 7,354 | |||
Goodwill | 14,327 | |||
Total assets acquired | 32,562 | |||
Liabilities: | ||||
Current liabilities | 408 | |||
Deferred tax liability | 3,079 | |||
Total liabilities assumed | 3,487 | |||
Net assets acquired | $ 29,075 |
Sale of Product Line - Addition
Sale of Product Line - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | [1] | Dec. 31, 2015 | Dec. 31, 2014 | Jan. 31, 2015 | |||
Sale Of Product Line [Line Items] | |||||||||||||||
Net sales | $ 420,636,000 | $ 445,030,000 | $ 454,603,000 | $ 445,897,000 | $ 419,291,000 | $ 444,011,000 | $ 452,414,000 | $ 460,451,000 | $ 1,766,166,000 | $ 1,776,167,000 | [1] | $ 1,927,213,000 | [1] | ||
Specialty polyurethane systems product line (kits) [Member] | |||||||||||||||
Sale Of Product Line [Line Items] | |||||||||||||||
Sale of product line for cash | $ 3,262,000 | ||||||||||||||
Net sales | $ 2,800,000 | ||||||||||||||
Gain from the kits sale | $ 2,862,000 | ||||||||||||||
[1] | Net sales are attributed to countries based on the location of the Company facility making the sales. |
Business Restructuring and A116
Business Restructuring and Asset Impairments - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2016USD ($)Employees | Dec. 31, 2014USD ($)Employees | |
2016 Restructuring [Member] | Longford Mills [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Business restructuring | $ 2,817,000 | |||
2016 Restructuring [Member] | Longford Mills [Member] | Termination Benefits [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Business restructuring | $ 1,594,000 | |||
2016 Restructuring [Member] | Longford Mills [Member] | Surfactants [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Number positions eliminated | Employees | 30 | |||
Depreciation expense | $ 4,471,000 | |||
2016 Restructuring [Member] | Longford Mills [Member] | Surfactants [Member] | Termination Benefits [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Business restructuring | 2,817,000 | |||
2016 Restructuring [Member] | Minimum [Member] | Longford Mills [Member] | Surfactants [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Expected restructuring expenses | $ 4,000,000 | 4,000,000 | ||
2016 Restructuring [Member] | Maximum [Member] | Longford Mills [Member] | Surfactants [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Expected restructuring expenses | 4,500,000 | 4,500,000 | ||
2016 Asset Impairments [Member] | Surfactants [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Asset impairment charges | 4,247,000 | |||
2016 Asset Impairments [Member] | United States [Member] | Nonionic Surfactants [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Asset impairment charges | 2,297,000 | |||
2016 Asset Impairments [Member] | Brazil [Member] | Bahia Plant | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Asset impairment charges | $ 1,950,000 | |||
2016 Asset Impairments [Member] | Brazil [Member] | Bahia Plant | Take-Or-Pay Contract [Member] | Net Sales [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Compensation for lost future revenues | $ 4,250,000 | |||
2014 Restructuring [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Business restructuring | $ 1,722,000 | $ 1,722,000 | ||
Number positions eliminated | Employees | 13 | |||
2014 Asset Impairments [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Asset impairment charges | 2,287,000 | $ 2,287,000 | ||
2014 Asset Impairments [Member] | Singapore [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Asset impairment charges | 1,316,000 | |||
2014 Asset Impairments [Member] | Millsdale, Illinois, Plant [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Asset impairment charges | 714,000 | |||
2014 Asset Impairments [Member] | United Kingdom [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Asset impairment charges | $ 257,000 |
Business Restructuring and A117
Business Restructuring and Asset Impairments - Reconciliation of Longford Mills Restructuring Liability (Detail) - 2016 Restructuring [Member] - Longford Mills [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Restructuring Cost And Reserve [Line Items] | |
Expense recognized | $ 2,817 |
Amounts paid | (781) |
Foreign currency translation | (51) |
Restructuring liability at December 31, 2016 | 1,985 |
Termination Benefits [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Expense recognized | 1,594 |
Foreign currency translation | (46) |
Restructuring liability at December 31, 2016 | 1,548 |
Other Expense [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Expense recognized | 1,223 |
Amounts paid | (781) |
Foreign currency translation | (5) |
Restructuring liability at December 31, 2016 | $ 437 |
Business Restructuring and A118
Business Restructuring and Asset Impairments - Reconciliation of Restructuring Liability (Detail) - 2014 Restructuring [Member] - Severance Expense [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Restructuring Cost And Reserve [Line Items] | |
Restructuring liability at January 1, 2016 | $ 1,722 |
Amounts paid | (1,695) |
Foreign currency translation | (18) |
Expense adjustment | (9) |
Restructuring liability at December 31, 2016 | $ 0 |
Customer Claim Losses - Additio
Customer Claim Losses - Additional Information (Detail) - Surfactants [Member] | 3 Months Ended | 12 Months Ended |
Dec. 31, 2016Claim | Dec. 31, 2016USD ($) | |
Loss Contingencies [Line Items] | ||
Number of customer claims | Claim | 2 | |
Insurance claims settlement amount | $ 7,367,000 | |
Insurance recoveries | $ 0 |
Statement of Cash Flows - No120
Statement of Cash Flows - Noncash Investing and Financing Activities - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Supplemental Cash Flow Elements [Line Items] | |||
Noncash investing activities incurred for fixed asset acquisitions | $ 10,410,000 | $ 9,515,000 | $ 17,797,000 |
Tebras And PBC [Member] | |||
Supplemental Cash Flow Elements [Line Items] | |||
Noncash investing activities unpaid working capital adjustments related to 2016 acquisitions | $ 4,459,000 |
TIORCO, LLC Joint Venture - Add
TIORCO, LLC Joint Venture - Additional Information (Detail) - TIORCO LLC [Member] - USD ($) | 3 Months Ended | |
Dec. 31, 2015 | Mar. 31, 2016 | |
Schedule Of Equity Method Investments [Line Items] | ||
Company’s share of exit costs upon dissolution | $ 2,356,000 | |
Cash investment | $ 2,900,000 |
Selected Quarterly Financial122
Selected Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||
Net Sales | $ 420,636 | $ 445,030 | $ 454,603 | $ 445,897 | $ 419,291 | $ 444,011 | $ 452,414 | $ 460,451 | $ 1,766,166 | [1] | $ 1,776,167 | [1] | $ 1,927,213 | [1] | ||||
Gross Profit | 68,720 | 83,395 | 92,931 | 93,499 | 74,689 | 77,598 | 79,512 | 76,442 | 338,545 | 308,241 | 249,563 | |||||||
Operating income | 9,932 | 28,738 | 42,916 | 44,607 | 20,223 | 38,794 | 28,595 | 35,178 | 126,193 | 122,790 | 90,694 | |||||||
Interest, net | (3,350) | (2,824) | (3,417) | (3,614) | (3,773) | (3,837) | (2,869) | (4,054) | (13,205) | (14,533) | (11,441) | |||||||
Income Before Income Taxes | 7,009 | 27,143 | 39,196 | 40,468 | 15,061 | 33,113 | 24,146 | 30,536 | 113,816 | 102,856 | 75,535 | |||||||
Net Income | 8,411 | [2] | 21,367 | [2] | 28,501 | [2] | 27,919 | [2] | 12,876 | 24,934 | 16,941 | 21,286 | 86,198 | [2] | 76,037 | 57,081 | ||
Net income attributable to Stepan Company | $ 8,417 | [2] | $ 21,362 | [2] | $ 28,496 | [2] | $ 27,916 | [2] | $ 12,872 | $ 24,912 | $ 16,914 | $ 21,270 | $ 86,191 | [2] | $ 75,968 | $ 57,101 | ||
Diluted earnings per share | $ 0.36 | [2] | $ 0.92 | [2] | $ 1.24 | [2] | $ 1.22 | [2] | $ 0.56 | $ 1.09 | $ 0.74 | $ 0.93 | $ 3.73 | [2] | $ 3.32 | $ 2.49 | ||
[1] | Net sales are attributed to countries based on the location of the Company facility making the sales. | |||||||||||||||||
[2] | The amounts for net income, net income attributable to Stepan Company and net income attributable to Stepan Company per diluted share for the first, second and third quarters of 2016 have been changed from the amounts originally reported as a result of the Company’s early adoption of ASU No. 2016-9, Compensation – Stock Compensation (Topic 718): Improvement to Employee Share-Based Payment Accounting. See Note 1 for additional information regarding ASU No. 2016-9. Below are the originally reported amounts for the items that changed: 2016 (In thousands, except per share data) First Second Third Net Income $27,657 $27,870 $20,432 Net Income Attributable to Stepan Company 27,654 27,865 20,427 Per Diluted Share 1.21 1.21 0.89 |
Selected Quarterly Financial123
Selected Quarterly Financial Data (Parenthetical) (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2016 | [1] | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | [1] | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Quarterly Data [Line Items] | ||||||||||||||||
Net Income | $ 8,411 | $ 21,367 | [1] | $ 28,501 | [1] | $ 27,919 | [1] | $ 12,876 | $ 24,934 | $ 16,941 | $ 21,286 | $ 86,198 | $ 76,037 | $ 57,081 | ||
Net income attributable to Stepan Company | $ 8,417 | $ 21,362 | [1] | $ 28,496 | [1] | $ 27,916 | [1] | $ 12,872 | $ 24,912 | $ 16,914 | $ 21,270 | $ 86,191 | $ 75,968 | $ 57,101 | ||
Diluted earnings per share | $ 0.36 | $ 0.92 | [1] | $ 1.24 | [1] | $ 1.22 | [1] | $ 0.56 | $ 1.09 | $ 0.74 | $ 0.93 | $ 3.73 | $ 3.32 | $ 2.49 | ||
New Accounting Pronouncement, Early Adoption [Member] | ASU No. 2016-9 [Member] | ||||||||||||||||
Quarterly Data [Line Items] | ||||||||||||||||
Net Income | $ 20,432 | $ 27,870 | $ 27,657 | |||||||||||||
Net income attributable to Stepan Company | $ 20,427 | $ 27,865 | $ 27,654 | |||||||||||||
Diluted earnings per share | $ 0.89 | $ 1.21 | $ 1.21 | |||||||||||||
[1] | The amounts for net income, net income attributable to Stepan Company and net income attributable to Stepan Company per diluted share for the first, second and third quarters of 2016 have been changed from the amounts originally reported as a result of the Company’s early adoption of ASU No. 2016-9, Compensation – Stock Compensation (Topic 718): Improvement to Employee Share-Based Payment Accounting. See Note 1 for additional information regarding ASU No. 2016-9. Below are the originally reported amounts for the items that changed: 2016 (In thousands, except per share data) First Second Third Net Income $27,657 $27,870 $20,432 Net Income Attributable to Stepan Company 27,654 27,865 20,427 Per Diluted Share 1.21 1.21 0.89 |