Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 31, 2020 | Jun. 28, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | SCL | ||
Entity Registrant Name | STEPAN COMPANY | ||
Entity Well Known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Central Index Key | 0000094049 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Tax Identification Number | 36-1823834 | ||
Entity File Number | 1-4462 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Address, Address Line One | 22 West Frontage Road | ||
Entity Address, City or Town | Northfield | ||
Entity Address, State or Province | IL | ||
Entity Address, Postal Zip Code | 60093 | ||
City Area Code | 847 | ||
Local Phone Number | 446-7500 | ||
Security Exchange Name | NYSE | ||
Title of 12(b) Security | Common Stock, $1 par value | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Interactive Data Current | Yes | ||
Entity Common Stock, Shares Outstanding | 22,516,988 | ||
Entity Public Float | $ 1,862,119,945 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Income Statement [Abstract] | ||||||
Net Sales (Note 1) | [1] | $ 1,858,745 | $ 1,993,857 | $ 1,925,007 | ||
Cost of Sales | [2] | 1,519,031 | 1,654,508 | 1,578,840 | ||
Gross Profit | [2] | 339,714 | 339,349 | [3] | 346,167 | |
Operating Expenses: | ||||||
Selling (Note 1) | 56,956 | 56,319 | 54,090 | |||
Administrative (Note 1) | 82,577 | 79,243 | 75,615 | |||
Research, development and technical services (Note 1) | 55,037 | 54,263 | 53,696 | |||
Deferred compensation expense (income) | 15,140 | (2,329) | 4,857 | |||
Total Operating expenses | 209,710 | 187,496 | 188,258 | |||
Business restructuring (Note 23) | [4] | (2,744) | (2,588) | (3,069) | ||
Operating Income | [2] | 127,260 | 149,265 | [3] | 154,840 | |
Other Income (Expense): | ||||||
Interest, net (Note 7) | (5,932) | (10,771) | (11,444) | |||
Other, net (Note 9) | 4,571 | (725) | 3,486 | |||
Nonoperating Income (Expense), Total | (1,361) | (11,496) | (7,958) | |||
Income Before Provision for Income Taxes | [2],[5] | 125,899 | 137,769 | [3] | 146,882 | |
Provision for Income Taxes (Note 10) | [2] | 22,798 | 26,664 | 46,139 | ||
Net Income | [2] | 103,101 | 111,105 | [3],[6] | 100,743 | [6] |
Net Loss Attributable to Noncontrolling Interests (Note 1) | 28 | 12 | 31 | |||
Net Income Attributable to Stepan Company | [2] | $ 103,129 | $ 111,117 | [3] | $ 100,774 | |
Net Income Per Common Share Attributable to Stepan Company (Note 19): | ||||||
Basic | [2] | $ 4.47 | $ 4.83 | $ 4.39 | ||
Diluted | [2] | $ 4.42 | $ 4.76 | [3] | $ 4.31 | |
Shares Used to Compute Net Income Per Common Share Attributable to Stepan Company (Note 19): | ||||||
Basic | 23,054 | 23,022 | 22,946 | |||
Diluted | 23,316 | 23,325 | 23,377 | |||
[1] | Net sales are attributed to countries based on the location of the Company facility making the sales. | |||||
[2] | The 2018 and 2017 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. | |||||
[3] | The 2018 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO | |||||
[4] | See Note 23 regarding business restructuring costs. | |||||
[5] | The 2018 and 2017 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO | |||||
[6] | The retained earnings and net income amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Statement Of Income And Comprehensive Income [Abstract] | ||||||
Net Income | [1] | $ 103,101 | $ 111,105 | [2],[3] | $ 100,743 | [3] |
Other Comprehensive Income (Loss): | ||||||
Foreign currency translation adjustments (Note 20) | 4,425 | (37,966) | 26,293 | |||
Defined benefit pension plans: | ||||||
Net actuarial gain (loss) arising in period (net of taxes of $1,263, $2,300 and $771 for 2019, 2018 and 2017, respectively) | 4,112 | (7,080) | (582) | |||
Amortization of prior service cost included in pension expense (net of taxes of $3, $3 and $4 for 2019, 2018 and 2017, respectively) | 9 | 10 | 10 | |||
Amortization of actuarial loss included in pension expense (net of taxes of $657, $979 and $1,240 for 2019, 2018 and 2017, respectively) | 2,082 | 3,080 | 2,269 | |||
Net defined benefit pension plan activity (Note 20) | 6,203 | (3,990) | 1,697 | |||
Cash flow hedges: | ||||||
Reclassifications to income in period | (9) | (10) | (9) | |||
Net cash flow hedge activity (Note 20) | (9) | (10) | (9) | |||
Other Comprehensive Income (Loss) | 10,619 | (41,966) | 27,981 | |||
Comprehensive Income | [1] | 113,720 | 69,139 | 128,724 | ||
Comprehensive (Income) Loss Attributable to Noncontrolling Interests | 47 | 58 | (48) | |||
Comprehensive Income Attributable to Stepan Company | [1] | $ 113,767 | $ 69,197 | $ 128,676 | ||
[1] | The 2018 and 2017 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. | |||||
[2] | The 2018 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO | |||||
[3] | The retained earnings and net income amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net actuarial loss arising in period, tax | $ 1,263 | $ 2,300 | $ 771 |
Amortization of prior service cost included in pension expense, tax | 3 | 3 | 4 |
Amortization of actuarial loss included in pension expense, tax | $ 657 | $ 979 | $ 1,240 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | ||
Current Assets: | ||||
Cash and cash equivalents | $ 315,383 | $ 300,194 | ||
Receivables, less allowances of $9,325 in 2019 and $9,654 in 2018 | 276,841 | 280,025 | ||
Inventories (Note 6) | [1] | 203,647 | 231,528 | |
Other current assets | 22,918 | 22,146 | ||
Total current assets | [1] | 818,789 | 833,893 | |
Property, Plant and Equipment: | ||||
Land | 27,258 | 26,341 | ||
Buildings and improvements | 223,793 | 212,072 | ||
Machinery and equipment | 1,415,802 | 1,365,509 | ||
Construction in progress | 95,282 | 62,868 | ||
Property, Plant and Equipment, Gross | 1,762,135 | 1,666,790 | ||
Less: accumulated depreciation | (1,122,818) | (1,057,898) | ||
Property, plant and equipment, net | 639,317 | 608,892 | ||
Goodwill, net (Note 5) | 26,086 | 22,954 | ||
Other intangible assets, net (Note 5) | 15,352 | 14,244 | ||
Long-term investments (Note 3) | 28,227 | 25,082 | ||
Operating lease assets (Note 8) | 38,386 | |||
Other non-current assets | [1] | 13,210 | 9,549 | |
Total Assets | [1] | 1,579,367 | 1,514,614 | |
Current Liabilities: | ||||
Current maturities of long-term debt (Note 7) | 23,571 | 37,058 | ||
Accounts payable | 194,276 | 205,954 | ||
Accrued liabilities (Note 15) | 121,267 | 95,570 | ||
Total current liabilities | 339,114 | 338,582 | ||
Deferred income taxes (Note 10) | [1] | 23,391 | 24,961 | |
Long-term debt, less current maturities (Note 7) | 198,532 | 239,022 | ||
Non-current operating lease liability (Note 8) | 29,654 | |||
Other non-current liabilities (Note 16) | 96,180 | 103,864 | ||
Commitments and Contingencies (Note 17) | ||||
Equity (Note 11): | ||||
Common stock, $1 par value; authorized 60,000,000 shares; issued 26,493,335 shares in 2019 and 26,308,668 shares in 2018 | 26,493 | 26,309 | ||
Additional paid-in capital | 193,135 | 182,881 | ||
Accumulated other comprehensive loss (Note 19) | [2] | (136,170) | (141,483) | |
Retained earnings | [1],[2] | 922,464 | 837,107 | |
Less: Common treasury stock, at cost, 3,979,735 shares in 2019 and 3,803,043 shares in 2018 | (114,139) | (97,389) | ||
Total Stepan Company stockholders’ equity | [1] | 891,783 | 807,425 | |
Noncontrolling interests | 713 | 760 | ||
Total equity | [1] | 892,496 | 808,185 | [3],[4] |
Total Liabilities and Equity | [1] | $ 1,579,367 | $ 1,514,614 | |
[1] | The 2018 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. | |||
[2] | The 2019 amounts for the noted line items include an adjustment related to the Company’s first quarter 2019 adoption of Accounting Standards Update (ASU) No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive income . | |||
[3] | The retained earnings amount for the noted line item has been retrospectively changed from the amount originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. | |||
[4] | The retained earnings and net income amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Allowances | $ 9,325 | $ 9,654 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 60,000,000 | 60,000,000 |
Common stock, shares issued | 26,493,335 | 26,308,668 |
Treasury stock, shares | 3,979,735 | 3,803,043 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Cash Flows From Operating Activities | ||||||
Net income | [1] | $ 103,101 | $ 111,105 | [2],[3] | $ 100,743 | [3] |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Depreciation and amortization | 78,701 | 81,115 | 79,022 | |||
Deferred compensation | 15,140 | (2,329) | 4,857 | |||
Realized and unrealized gain on long-term investments | (3,955) | 2,966 | (4,178) | |||
Stock-based compensation | 8,872 | 6,837 | 7,151 | |||
Deferred income taxes | [1] | (5,016) | 10,355 | (1,001) | ||
Other non-cash items | 2,240 | 4,622 | 4,857 | |||
Changes in assets and liabilities, excluding effects of acquisitions: | ||||||
Receivables, net | 4,894 | 5,196 | (16,358) | |||
Inventories | [1] | 28,460 | (24,678) | (1,990) | ||
Other current assets | (680) | 832 | (489) | |||
Accounts payable and accrued liabilities | (15,084) | (19,023) | 30,476 | |||
Pension liabilities | (790) | (5,065) | (1,960) | |||
Environmental and legal liabilities | 2,519 | (478) | (1,142) | |||
Deferred revenues | 26 | (324) | (1,125) | |||
Net Cash Provided By Operating Activities | 218,428 | 171,131 | 198,863 | |||
Cash Flows From Investing Activities | ||||||
Expenditures for property, plant and equipment | (105,572) | (86,647) | (78,613) | |||
Business acquisitions, net of cash acquired (Note 21) | (9,000) | (22,852) | (4,339) | |||
Other, net | 1,905 | 1,684 | 269 | |||
Net Cash Used In Investing Activities | (112,667) | (107,815) | (82,683) | |||
Cash Flows From Financing Activities | ||||||
Revolving debt and bank overdrafts, net | (7,495) | 6,045 | (6,008) | |||
Other debt repayments | (46,429) | (20,714) | (20,714) | |||
Dividends paid | (23,097) | (20,857) | (18,907) | |||
Company stock repurchased | (13,184) | (15,500) | (6,000) | |||
Stock option exercises | 3,037 | 4,163 | 3,370 | |||
Other, net | (3,326) | (4,785) | (2,238) | |||
Net Cash Used In Financing Activities | (90,494) | (51,648) | (50,497) | |||
Effect of Exchange Rate Changes on Cash | (78) | (10,368) | 7,468 | |||
Net Increase in Cash and Cash Equivalents | 15,189 | 1,300 | 73,151 | |||
Cash and Cash Equivalents at Beginning of Year | 300,194 | 298,894 | 225,743 | |||
Cash and Cash Equivalents at End of Year | 315,383 | 300,194 | 298,894 | |||
Supplemental Cash Flow Information | ||||||
Cash payments of income taxes, net of refunds | 29,331 | 32,973 | 25,661 | |||
Cash payments of interest | $ 12,250 | $ 12,829 | $ 13,889 | |||
[1] | The 2018 and 2017 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. | |||||
[2] | The 2018 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO | |||||
[3] | The retained earnings and net income amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. |
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 [Member] | ||
Beginning Balance at Dec. 31, 2016 | [1] | $ 652,024 | $ 25,895 | $ 158,042 | $ (70,938) | $ (127,465) | $ 665,178 | $ 1,312 | |
Issuance of common stock under stock option plan | 3,370 | 104 | 3,266 | ||||||
Purchase of common stock | (6,000) | (6,000) | |||||||
Stock-based and deferred compensation | 7,549 | 72 | 9,100 | (1,623) | |||||
Net income | [1] | 100,743 | [2] | 100,774 | (31) | ||||
Other comprehensive income | 27,981 | 27,902 | 79 | ||||||
Cash dividends paid: | |||||||||
Common stock | (18,907) | (18,907) | |||||||
Payment of cash dividends to noncontrolling interest | (542) | (542) | |||||||
Ending Balance at Dec. 31, 2017 | [1] | 766,218 | 26,071 | 170,408 | (78,561) | (99,563) | 747,045 | 818 | |
Issuance of common stock under stock option plan | 4,163 | 97 | 4,066 | ||||||
Purchase of common stock | (15,500) | (15,500) | |||||||
Stock-based and deferred compensation | 5,220 | 141 | 8,407 | (3,328) | |||||
Net income | [1] | 111,105 | [2],[3] | 111,117 | (12) | ||||
Other comprehensive income | (41,966) | (41,920) | (46) | ||||||
Cash dividends paid: | |||||||||
Common stock | (20,857) | (20,857) | |||||||
Other | [4] | (198) | (198) | ||||||
Ending Balance at Dec. 31, 2018 | [1],[6] | 808,185 | [5] | 26,309 | 182,881 | (97,389) | (141,483) | 837,107 | 760 |
Issuance of common stock under stock option plan | 3,037 | 60 | 2,977 | ||||||
Purchase of common stock | (13,184) | (13,184) | |||||||
Stock-based and deferred compensation | 3,835 | 124 | 7,277 | (3,566) | |||||
Net income | 103,101 | [2] | 103,129 | (28) | |||||
Other comprehensive income | 10,619 | 10,638 | (19) | ||||||
Cash dividends paid: | |||||||||
Common stock | (23,097) | (23,097) | |||||||
Other | [7] | (5,325) | 5,325 | ||||||
Ending Balance at Dec. 31, 2019 | $ 892,496 | [5] | $ 26,493 | $ 193,135 | $ (114,139) | $ (136,170) | $ 922,464 | $ 713 | |
[1] | The retained earnings and net income amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. | ||||||||
[2] | The 2018 and 2017 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. | ||||||||
[3] | The 2018 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO | ||||||||
[4] | Reflects beginning retained earnings adjustment as a result of the Company’s first quarter 2018 adoption of ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. | ||||||||
[5] | The 2018 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. | ||||||||
[6] | The retained earnings amount for the noted line item has been retrospectively changed from the amount originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. | ||||||||
[7] | Reflects beginning retained earnings adjustment as a result of the Company’s first quarter 2019 adoption of ASU No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Number of shares of common stock issued under stock option plan | 59,799 | 97,471 | 104,277 |
Number of common stock shares purchased | 144,457 | 205,983 | 76,790 |
Common stock | $ 1.03 | $ 0.93 | $ 0.86 |
Common Stock [Member] | |||
Number of shares of common stock issued under stock option plan | 59,799 | 97,471 | 104,277 |
Additional Paid-in Capital [Member] | |||
Number of shares of common stock issued under stock option plan | 59,799 | 97,471 | 104,277 |
Treasury Stock [Member] | |||
Number of common stock shares purchased | 144,457 | 205,983 | 76,790 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
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. 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, 2019, the Company’s cash and cash equivalents totaled $315.4 million including $110.7 million in money market funds, each of which was rated AAAm by Standard and Poor’s, Aaa-mf by Moody’s and AAAmmf by Fitch. Cash in U.S. demand deposit accounts and certificates of deposit totaled $105.7 million and cash of the Company’s non-U.S. subsidiaries held outside the U.S. totaled $99.0 million as of December 31, 2019. 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 2019, 2018 or 2017. 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. 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, 2019, 2018 and 2017: (In thousands) 2019 2018 2017 Balance at January 1 $ 9,654 $ 10,116 $ 9,755 Provision charged to income 29 764 45 Accounts written off, net of recoveries (358 ) (1,226 ) 316 Balance at December 31 $ 9,325 $ 9,654 $ 10,116 Inventories Inventories are valued at cost, which is not in excess of market value, and include material, labor and plant overhead costs. Prior to 2019, the LIFO method was used to determine the cost of the Company’s U.S. inventories. Effective January 1, 2019, the Company elected to change its method of accounting for U.S. inventories from the LIFO basis to FIFO basis. Non-U.S. inventories have historically been maintained on the FIFO basis. Prior period financial statements have been adjusted to reflect what results would have been had the Company always used the FIFO method of inventory valuation for U.S. inventories. See Note 2 for additional details. 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 and a large majority of the assets included within machinery and equipment represent manufacturing equipment. Major renewals and betterments are capitalized in the property accounts, while maintenance and repairs ($58,464,000, $57,010,000, and $51,926,000 in 2019, 2018 and 2017, respectively), which do not renew or extend the life of the respective assets, are charged to operations as incurred. Land is not depreciated. The cost of property retired or sold and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in income. 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. 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 3), its outstanding debt for disclosure purposes (also Note 3) and its pension plan assets (see Note 14). 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 The Company’s contracts typically have a single performance obligation that is satisfied at the time product is shipped and control passes to the customer. For a small portion of the business, performance obligations are deemed satisfied when product is delivered to a customer location. For arrangements where the Company consigns product to a customer location, revenue is recognized when the customer uses the inventory. The Company accounts for shipping and handling as activities to fulfill a promise to transfer a good. As such, shipping and handling fees billed to customers in a sales transaction are recorded in Net Sales and shipping and handling costs incurred are recorded in Cost of Sales. Volume and cash discounts due customers are estimated and recorded in the same period as the sales to which the discounts relate and are reported as reductions of revenue in the consolidated statements of income. See Note 22 to the consolidated financial statements for more details. 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, warehouse expenses and rail car rental 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. The majority of 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 $34,139,000, $33,519,000, and $33,169,000 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 typically 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 17 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 other than goodwill. The values for intangible assets with finite lives are amortized over the useful lives of the assets. Currently, the useful lives for the Company’s finite-lived intangible assets are as follows: patents – 10-15 years ; non-compete agreements – five years ; trademarks – 11 years ; customer relationships – 10-25 years ; supply contracts – four years and know-how – 8-14 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 5 for detailed information about goodwill and other intangible assets. Income Taxes Income taxes are accounted for under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. Deferred tax assets are recognized to the extent that we believe these assets are more likely than not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If we determine that we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. Uncertain tax positions are recorded in accordance with ASC 740 on the basis of a two-step process whereby (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The Company recognizes interest and penalties related to unrecognized tax benefits within the income tax expense line in the accompanying Consolidated Statement of Operations. Accrued interest and penalties are included within the related tax liability line in the Consolidated Balance Sheet. See Note 10 for more information about the Company’s 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 three foreign subsidiaries whose functional currencies are the U.S. dollar. For these subsidiaries, 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 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 Note 12 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 19 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 20 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 18 for detailed information about the Company’s segment reporting. 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 4 for further information regarding the Company’s use of derivatives. At December 31, 2019, the Company held open forward contracts for the purchase of 0.9 Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-2, Leases (Topic 842) Leases (Topic 842) Leases In February 2018, the FASB issued ASU No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income effective for public business entities for fiscal years, and interim periods within those years, beginning after December 15, 2018. The Company adopted this guidance and recorded a $5,325,000 adjustment to the opening balance of retained earnings as of January 1, 2019 with the corresponding offset to AOCI. See Note 20, Accumulated Other Comprehensive Income (Loss) for more details . In June 2016, the FASB issued ASU No. 2016-13 , Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In January 2017, the FASB issued ASU No. 2017-4, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. In August 2018, the FASB issued ASU No. 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20). In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use software (Subtopic 350-40) Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes. |
Change In Method of Accounting
Change In Method of Accounting for Inventory Valuation | 12 Months Ended |
Dec. 31, 2019 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Change in Method of Accounting for Inventory Valuation | 2. Change in Method of Accounting for Inventory Valuation On January 1, 2019, the Company elected to change its method of accounting for U.S. inventories from the LIFO basis to the FIFO basis. Total U.S. inventories accounted for using the LIFO cost flow assumption, prior to the accounting method change, comprised 68 percent of the Company’s total inventories as of December 31, 2018. Non-U.S. inventories have historically been maintained on the FIFO basis. The Company believes that this change to the FIFO method of inventory valuation is preferable as it provides a better matching of costs with the physical flow of goods, more accurately reflects the current market value of inventory presented on the Company’s consolidated balance sheets, standardizes the Company’s inventory valuation methodology and improves comparability with the Company’s industry peers. In accordance with ASC 250, Accounting Changes and Error Corrections The following tables present the prior year financial statement line items that have been affected by the retrospective change in accounting principle: Income Statement (In thousands, except per share amounts) Year Ended December 31, 2018 As originally reported under LIFO Effect of change As adjusted under FIFO Cost of Sales $ 1,652,354 $ 2,154 $ 1,654,508 Gross Profit 341,503 (2,154 ) 339,349 Operating Income 151,419 (2,154 ) 149,265 Income Before Provision for Income Taxes 139,923 (2,154 ) 137,769 Provision for Income Taxes 27,173 (509 ) 26,664 Net Income 112,750 (1,645 ) 111,105 Net Income Attributable to Stepan Company 112,762 (1,645 ) 111,117 Net Income Per Diluted Common Share Attributable to Stepan Company $ 4.83 $ (0.07 ) $ 4.76 (In thousands, except per share amounts) Year Ended December 31, 2017 As originally reported under LIFO Effect of change As adjusted under FIFO Cost of Sales $ 1,586,485 $ (7,645 ) $ 1,578,840 Gross Profit 338,522 7,645 346,167 Operating Income 147,195 7,645 154,840 Income Before Provision for Income Taxes 139,237 7,645 146,882 Provision for Income Taxes 47,690 (1,551 ) 46,139 Net Income 91,547 9,196 100,743 Net Income Attributable to Stepan Company 91,578 9,196 100,774 Net Income Per Diluted Common Share Attributable to Stepan Company $ 3.92 $ 0.39 $ 4.31 Balance Sheet (In thousands) December 31, 2018 As originally reported under LIFO Effect of change As adjusted under FIFO Inventories $ 200,165 $ 31,363 $ 231,528 Other Non-Current Assets 10,964 (1,415 ) 9,549 Total Assets 1,484,666 29,948 1,514,614 Deferred Income Taxes $ 18,672 $ 6,289 $ 24,961 Retained Earnings 813,448 23,659 837,107 Total Liabilities and Equity 1,484,666 29,948 1,514,614 Statement of Cash Flows (In thousands) Year Ended December 31, 2018 As originally reported under LIFO Effect of change As adjusted under FIFO Net Income $ 112,750 $ (1,645 ) $ 111,105 Deferred Income Taxes 10,864 (509 ) 10,355 Change in Assets and Liabilities: Inventories (26,832 ) 2,154 (24,678 ) (In thousands) Year Ended December 31, 2017 As originally reported under LIFO Effect of change As adjusted under FIFO Net Income $ 91,547 $ 9,196 $ 100,743 Deferred Income Taxes 550 (1,551 ) (1,001 ) Change in Assets and Liabilities: Inventories 5,655 (7,645 ) (1,990 ) The following tables present what 2019 financial statement line items would have been had the Company not changed its method of accounting for U.S. inventories from the LIFO to FIFO basis: Income Statement (In thousands, except per share amounts) Year Ended December 31, 2019 As reported under FIFO Effect of change As computed under LIFO Cost of Sales $ 1,519,031 $ (4,000 ) $ 1,515,031 Gross Profit 339,714 4,000 343,714 Operating Income 127,260 4,000 131,260 Income Before Provision for Income Taxes 125,899 4,000 129,899 Provision for Income Taxes 22,798 983 23,781 Net Income 103,101 3,017 106,118 Net Income Attributable to Stepan Company 103,129 3,017 106,146 Net Income Per Diluted Common Share Attributable to Stepan Company $ 4.42 $ 0.13 $ 4.55 Balance Sheet (In thousands) December 31, 2019 As reported under FIFO Effect of change As computed under LIFO Inventories $ 203,647 $ (27,363 ) $ 176,284 Other Non-Current Assets 13,210 1,415 14,625 Total Assets 1,579,367 (25,948 ) 1,553,419 Deferred Income Taxes $ 23,391 $ (5,306 ) $ 18,085 Retained Earnings 922,464 (20,642 ) 901,822 Total Liabilities and Equity 1,579,367 (25,948 ) 1,553,419 Statement of Cash Flows (In thousands) Year Ended December 31, 2019 As reported under FIFO Effect of change As computed under LIFO Net Income $ 103,101 $ 3,017 $ 106,118 Deferred Income Taxes (5,016 ) 983 (4,033 ) Change in Assets and Liabilities: Inventories 28,460 (4,000 ) 24,460 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. Fair Value Measurements The following were the financial instruments held by the Company at December 31, 2019 and 2018, and the methods and assumptions used to estimate the instruments’ fair values: Cash and cash equivalents Carrying value approximated fair value because of the short maturity of the instruments. Derivative assets and liabilities Derivative assets and liabilities include the foreign currency exchange contracts discussed in Note 4. Fair value and carrying value were the same because the contracts were recorded at fair value. The fair values of the foreign currency contracts were calculated as the difference between the applicable forward foreign exchange rates at the reporting date and the contracted foreign exchange rates multiplied by the contracted notional amounts. 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 14). 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, 2019 and 2018, the fair values and related carrying values of debt, including current maturities, were as follows (the fair value and carrying value amounts are presented without regard to unamortized debt issuance costs of $754,000, and $978,000 (In thousands) December 31 2019 2018 Fair value $ 226,712 $ 274,119 Carrying value 222,857 277,058 The following tables present financial assets and liabilities measured on a recurring basis at fair value as of December 31, 2019 and 2018, and the level within the fair value hierarchy in which the fair value measurement falls: (In thousands) December 2019 Level 1 Level 2 Level 3 Mutual fund assets $ 28,227 $ 28,227 $ — $ — Derivative assets: Foreign currency contracts 981 — 981 — Total assets at fair value $ 29,208 $ 28,227 $ 981 $ — Derivative liabilities: Foreign currency contracts $ 429 $ — $ 429 $ — Total liabilities at fair value $ 429 $ — $ 429 $ — (In thousands) December 2018 Level 1 Level 2 Level 3 Mutual fund assets $ 25,082 $ 25,082 $ — $ — Derivative assets: Foreign currency contracts 185 — 185 — Total assets at fair value $ 25,267 $ 25,082 $ 185 $ — Derivative liabilities: Foreign currency contracts $ 10 $ — $ 10 $ — Total liabilities at fair value $ 10 $ — $ 10 $ — |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 4. Derivative Instruments The Company is exposed to certain risks relating to its ongoing business operations. The primary risk managed by the use of derivative instruments is foreign currency exchange risk. The Company holds forward foreign currency exchange contracts that are not designated as any type of accounting hedge as defined by U.S. 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, 2019 and 2018, the Company had open forward foreign currency exchange contracts, all with durations of one to three months, to buy or sell foreign currencies with a U.S. dollar equivalent of $48,540,368 and $28,870,081, respectively. The fair values of the derivative instruments held by the Company on December 31, 2019, and December 31, 2018, are disclosed in Note 3. Derivative instrument gains and losses for the years ended December 31, 2019, 2018 and 2017, were immaterial. For amounts reclassified out of AOCI into earnings for the years ended December 31, 2019, 2018 and 2017, see Note 20. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 5. The changes in the carrying value of goodwill for the years ended December 31, 2019 and 2018, were as follows: (In thousands) Surfactants Segment Polymer Segment Specialty Products Segment Total 2019 2018 2019 2018 2019 2018 2019 2018 Balance as of January 1 Goodwill $ 20,521 $ 22,627 $ 5,417 $ 5,475 $ 483 $ 483 $ 26,421 $ 28,585 Accumulated impairment loss (3,467 ) (3,467 ) — — — — (3,467 ) (3,467 ) Goodwill, net 17,054 19,160 5,417 5,475 483 483 22,954 25,118 Goodwill acquired (1) 3,497 — — — — — 3,497 — Goodwill measurement period adjustment — — — — — — — — Foreign currency translation (354 ) (2,106 ) (11 ) (58 ) — — (365 ) (2,164 ) Balance as of December 31 Goodwill 23,664 20,521 5,406 5,417 483 483 29,553 26,421 Accumulated impairment loss (3,467 ) (3,467 ) — — — — (3,467 ) (3,467 ) Goodwill, net $ 20,197 $ 17,054 $ 5,406 $ 5,417 $ 483 $ 483 $ 26,086 $ 22,954 (1) See Note 21 for information regarding the goodwill acquired in a business combination. Company tests its goodwill balances for impairment in the second quarter of each calendar year. The 2019 and 2018 tests indicated no impairment. The following table presents the components of other intangible assets, all of which have finite lives, as of December 31, 2019 and 2018. The year-over-year changes in gross carrying values mainly resulted from an oilfield demulsifier product line acquisition and the effects of foreign currency translation. (In thousands) Gross Carrying Value Accumulated Amortization December 31 December 31 2019 2018 2019 2018 Other Intangible Assets: Patents $ 6,947 $ 6,947 $ 5,091 $ 4,492 Non-compete agreements 374 $ 387 242 $ 173 Trademarks 4,087 3,800 2,561 1,929 Customer lists/relationships (2) 14,539 10,750 5,983 4,356 Supply contract 2,040 2,113 1,657 1,189 Know-how (1)(2) 9,543 7,900 6,644 5,514 Total $ 37,530 $ 31,897 $ 22,178 $ 17,653 (1) 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 (2) In 2019, customer lists/relationships and k Aggregate amortization expense for the years ended December 31, 2019, 2018 and 2017, was $3,399,000, $3,470,000, and $3,711,000, respectively. Estimated amortization expense for identifiable intangibles assets for each of the five succeeding fiscal years is as follows: (In thousands) For year ended 12/31/20 $ 3,522 For year ended 12/31/21 2,207 For year ended 12/31/22 1,563 For year ended 12/31/23 1,563 For year ended 12/31/24 1,362 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | 6. Inventories The composition of inventories was as follows: December 31 (In thousands) 2019 2018 As Adjusted Finished products $ 139,785 $ 163,617 Raw materials 63,862 67,911 Total inventories $ 203,647 $ 231,528 Effective January 1, 2019, the Company elected to change its method of accounting for U.S. inventories from the LIFO basis to the FIFO basis. Non-U.S. inventories have historically been maintained on the FIFO basis. Prior period financial statements have been adjusted to reflect what results would have been had the Company always used the FIFO method of inventory valuation for U.S. inventories. See Note 2 for additional details. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | 7. Debt Debt comprised the following at December 31, 2019 and 2018: (In thousands) Maturity Dates December 31, 2019 December 31, 2018 Unsecured private placement notes 3.95% (net of unamortized debt issuance cost of $316 and $360 for 2019 and 2018, respectively) 2021-2027 $ 99,684 $ 99,640 3.86% (net of unamortized debt issuance cost of $291 and $347 for 2019 and 2018, respectively) 2020-2025 85,423 99,653 4.86% (net of unamortized debt issuance cost of $147 and $186 for 2019 and 2018, respectively) 2020-2023 36,996 46,243 5.88% (net of unamortized debt issuance cost of $0 and $85 for 2019 and 2018, respectively) 2019 — 22,772 Debt of foreign subsidiaries Unsecured bank debt, foreign currency 2019 — 7,772 Total debt $ 222,103 $ 276,080 Less current maturities 23,571 37,058 Long-term debt $ 198,532 $ 239,022 The Company’s long-term debt financing is currently composed of unsecured private placement notes issued to insurance companies, totaling $222,857,000 as of December 31, 2019. These notes are denominated in U.S. dollars and have fixed interest rates ranging from 3.86 percent to 4.86 percent. The notes had original maturities of 12 years with mandatory amortization of principal beginning six years after issuance. The Company will be required to make amortization payments on the currently outstanding notes from 2020 to 2027. The Company has a Loans under the credit agreement may be incurred, at the discretion of the Company, with terms to maturity of one to six months. The Company may choose from two interest rate options: (1) LIBOR applicable to each currency plus spreads ranging from 1.25 percent to 1.875 percent, depending on the Company’s net leverage ratio, or (2) the prime rate plus 0.25 percent to 0.875 percent, depending on the Company’s net leverage ratio. The credit agreement requires the Company to pay a commitment fee ranging from 0.15 percent to 0.325 percent per annum, which also depends on the Company’s net 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. On June 12, 2019, the Company prepaid the $ 17,100,000 outstanding principal balance of its 5.88 percent Series 2010-A Senior Notes due June 1, 2022 (Notes) and the related make-whole amount of $ 1,173,000 . The make-whole amount primarily reflected the net present value of the remaining scheduled interest payments on the Notes, calculated in accordance with the applicable note purchase agreement. The prepayment was made with cash on hand. The Company also expensed remaining unamortized debt issuance costs of $ 74,000 . The Company’s foreign subsidiaries had no unsecured debt at December 31, 2019. The Company’s loan agreements contain provisions, which, among others, require maintenance of certain financial ratios and place limitations on additional debt, investments and payment of dividends. Based on the loan agreement provisions that place limitations on dividend payments, unrestricted retained earnings (i.e., retained earnings available for dividend distribution) were $283,956,000 and $190,442,000 at December 31, 2019 and 2018, respectively. Debt at December 31, 2019, matures as follows: $23,571,000 in 2020; $37,858,000 in 2021; $37,858,000 in 2022; $37,857,000 in 2023; $28,572,000 . Net interest expense for the years ended December 31, 2019, 2018 and 2017, comprised the following: (In thousands) 2019 2018 2017 Interest expense $ 12,744 $ 13,360 $ 14,428 Interest income (5,717 ) (1,829 ) (2,075 ) 7,027 11,531 12,353 Capitalized interest (1,095 ) (760 ) (909 ) Interest expense, net $ 5,932 $ 10,771 $ 11,444 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | 8. Leases The Company adopted ASU No. 2016-02, Leases (Topic 842) Leases (Topic 842) The Company elected to apply the new lease standard at adoption as allowed under ASU No. 2018-11 and, as a result, the Company did not retrospectively adjust prior periods presented. The Company elected the practical expedient to not separate non-lease components from lease components for all asset classes and the practical expedient which permits a Company to not reassess prior conclusions about lease identification, lease classifications and initial direct costs. The Company did not elect the use-of-hindsight or the practical expedient pertaining to land easements, the latter not being applicable to the Company. In addition, the Company made an accounting policy election to keep leases with an initial term of 12 months or less off the balance sheet. Upon adoption of ASC 842, the Company recognized $42,400,000 of ROU assets and related operating lease liabilities on its balance sheet. There was no cumulative catch-up adjustment made to beginning retained earnings. Significant judgments used by the Company to determine whether a contract is or contains a lease include: (i) determining whether any explicitly or implicitly identified assets have been identified in the contract and (ii) determining whether the Company obtains substantially all of the economic benefits from the use of an underlying asset and directs how and for what purpose the asset is used during the term of the contract. The Company’s operating leases are primarily comprised of railcars, real estate, storage tanks, autos, trailers and manufacturing/office equipment. Railcars and real estate comprise approximately 50 percent and 37 percent, respectively, of the Company’s consolidated ROU asset balance. With the exception of real estate, typical lease terms range from one to ten years. Real estate lease terms typically range from one to fifty years. The Company’s two principal real estate leases relate to land leases in the Philippines and Singapore. As of December 31, 2019, the Company had additional leases, primarily for equipment and railcars, that have not commenced of approximately $537,000. These leases will commence in the first half of 2020 with lease terms of five years. Variability associated with the Company’s lease obligations typically relates to: (i) additional charges based on usage (i.e., railcar mileage in excess of a specified amount) and, (ii) periodic increases associated with Consumer Price Index (CPI) changes (i.e., land rental payments). Appropriate CPI at the inception of a lease is reflected in the Company’s lease liability balances whereas variability based on usage is typically excluded from lease liability amounts. Some of the Company’s leases include options to extend the lease term but these are typically not recognized as part of the ROU asset or lease liability at inception unless it is reasonably certain the renewal option will be exercised. Determining whether a renewal option is reasonably certain to be exercised requires judgment based on the existing facts and circumstances as well as expectations about future business needs. Renewal options are typically re-assessed within one year or less prior to lease termination when the Company is able to more accurately forecast future business needs. Some of the Company’s lease contracts include options to terminate leases early but these are typically not considered unless it is reasonably certain the early termination option will be exercised. The Company’s leases do not typically carry any residual value guarantees and typically payment is not considered probable when such guarantees are included in the contract. Initial implementation of ASU No. 2016-02, Leases (Topic 842) As most of the Company’s leases do not provide an implicit borrowing rate, the Company uses its incremental borrowing rate (IBR) based on the information available at the commencement date in determining the present value of lease payments. IBRs were specifically determined for the United States, the Philippines, Singapore, Brazil and China, typically for five-year increments. The U.S. IBR was used for all other countries as the leases in these countries are not material. The total value of leases that reside in the five countries identified above represents approximately 97 percent of the Company’s consolidated ROU asset balance. (In thousands) Year ended December 31, 2019 Lease Cost Operating lease cost $ 10,908 Short-term lease cost 4,420 Variable lease cost 1,045 Total lease cost $ 16,373 Other Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow from operating leases $ 10,954 Right-of-use assets obtained in exchange for new operating lease liabilities 5,694 (In thousands) Undiscounted Cash Flows: 2020 $ 10,086 2021 7,589 2022 6,395 2023 5,132 2024 3,014 Subsequent to 2024 16,235 Total Undiscounted Cash Flows $ 48,451 Less: Imputed interest (10,052 ) Present value $ 38,399 Current operating lease liabilities (1) 8,745 Non-current operating lease liabilities 29,654 Total lease liabilities $ 38,399 (1) This item is included in Accrued liabilities line on the Company’s Consolidated Balance Sheet. Weighted-average remaining lease term-operating leases 9 Years Weighted-average discount rate-operating leases 4.2% ASC 840 Disclosure As required in transition, the table below summarizes the Company’s future minimum lease payments at December 31, 2018 under ASC 840. (In thousands) Year 2019 $ 9,740 2020 8,294 2021 6,027 2022 5,242 2023 4,101 Subsequent to 2023 16,593 Total minimum future rental payments $ 49,997 |
Other, Net
Other, Net | 12 Months Ended |
Dec. 31, 2019 | |
Other Income And Expenses [Abstract] | |
Other, Net | 9. Other, Net Other, net in the Consolidated Statements of Income included the following for the years ended December 31, 2019, 2018 and 2017: (In thousands) 2019 2018 2017 Foreign exchange gains (losses) $ 123 $ 1,902 $ (646 ) Investment income 968 1,554 989 Realized and unrealized gains (losses) on investments 3,955 (2,966 ) 4,178 Net periodic benefit cost (351 ) (1,215 ) (1,035 ) Gain on sale of asset 570 — — Other retirement obligation (694 ) — — Other, net $ 4,571 $ (725 ) $ 3,486 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes The provisions for taxes on income and the related income before taxes for the years ended December 31, 2019, 2018 and 2017, were as follows: (In thousands) 2019 2018 As Adjusted 2017 As Adjusted Taxes on Income Federal Current $ 9,998 $ (296 ) $ 32,299 Deferred (1) (2,879 ) 8,876 (3,690 ) State Current 2,248 2,095 1,764 Deferred (1) (1,783 ) 1,821 587 Foreign Current 15,568 14,510 13,077 Deferred (354 ) (342 ) 2,102 Total (1) $ 22,798 $ 26,664 $ 46,139 Income before Taxes Domestic (1) $ 63,399 $ 86,368 $ 80,307 Foreign 62,500 51,401 66,575 Total (1) $ 125,899 $ 137,769 $ 146,882 (1) The 2018 and 2017 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. The variations between the effective and statutory U.S. federal income tax rates are summarized as follows: (In thousands) 2019 Amount % 2018 Amount As Adjusted % 2017 Amount As Adjusted % Federal income tax provision at statutory tax rate (1) $ 26,439 21.0 $ 28,931 21.0 $ 51,409 35.0 State income tax provision, less applicable federal tax benefit (1)(2) 367 0.3 3,094 2.2 1,528 1.0 Foreign income taxed at different rates 623 0.5 864 0.6 (8,075 ) (5.5 ) U.S. taxation of foreign earnings (3) 2,349 1.9 2,348 1.7 (1,054 ) (0.7 ) Unrecognized tax benefits 2,954 2.3 (460 ) (0.3 ) (47 ) — Domestic production activities deduction — — — — (1,339 ) (0.9 ) Nontaxable foreign interest income — — (1,179 ) (0.9 ) (2,073 ) (1.4 ) U.S. tax reform, net impact (4) — — (375 ) (0.3 ) 10,323 7.0 Change in accounting methods (5) — — (3,383 ) (2.5 ) (893 ) (0.6 ) Prior years return to provision true-up (6) (1,740 ) (1.4 ) (508 ) (0.4 ) (266 ) (0.2 ) Stock based compensation, excess tax benefits (1,633 ) (1.3 ) (1,648 ) (1.2 ) (2,254 ) (1.5 ) U.S. tax credits (7) (6,412 ) (5.1 ) (1,324 ) (1.0 ) (1,204 ) (0.8 ) Non-deductible expenses and other items, net (149 ) (0.1 ) 304 0.5 84 0.0 Total income tax provision (1) $ 22,798 18.1 $ 26,664 19.4 $ 46,139 31.4 (1) The 2018 and 2017 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. (2) Includes incremental state research credits for the tax years 2015 - 2019 that were identified as part of a research and development tax credit study. (3) Includes cost of global intangible low-taxed income (GILTI) in 2019 and 2018 plus other taxes paid or withheld on cash repatriated from foreign countries in 2019 and 2018. (4) Does not include state tax impacts, which are included in state income tax provision, less applicable federal tax benefit. (5) For 2018, amount represents the federal tax rate change due to certain accounting methods that were adopted on the 2017 federal income tax return. For 2017, amount represents an accounting method change for depreciation. (6) Certain 2018 and 2017 amounts have been reclassified to conform to the 2019 presentation. (7) Includes incremental federal research credits for 2015 - 2019 that were identified as part of a research and development tax credit study. Also includes a federal tax rate change due to the classification of certain 2016 and 2017 depreciable fixed assets as deductible research costs. At December 31, 2019 and 2018, the tax effects of significant temporary differences representing deferred tax assets and liabilities were as follows: (In thousands) 2019 2018 As Adjusted Deferred Tax Liabilities: Depreciation $ (59,574 ) $ (57,665 ) Unrealized foreign exchange loss (1,479 ) (980 ) Amortization of intangibles (835 ) (1,016 ) Inventories (1) (5,855 ) (8,429 ) Other (307 ) (301 ) $ (68,050 ) $ (68,391 ) Deferred Tax Assets: Pensions $ 5,855 $ 7,971 Deferred revenue 161 208 Other accruals and reserves 12,171 13,123 Legal and environmental accruals 7,758 7,143 Deferred compensation 15,816 14,214 Bad debt and rebate reserves 2,604 2,916 Non-U.S. subsidiaries net operating loss carryforwards 3,966 3,869 Tax credit carryforwards 5,200 2,141 $ 53,531 $ 51,585 Valuation Allowance $ (2,994 ) $ (3,701 ) Net Deferred Tax Liabilities $ (17,513 ) $ (20,507 ) Reconciliation to Consolidated Balance Sheet: Non-current deferred tax assets (in other non-current assets) (1) 5,878 4,454 Non-current deferred tax liabilities (23,391 ) (24,961 ) Net Deferred Tax (Liabilities) Assets $ (17,513 ) $ (20,507 ) (1) The 2018 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. Earnings generated by a foreign subsidiary are presumed to ultimately be transferred to the parent company. Therefore, the establishment of deferred taxes may be required with respect to the excess of the investment value for financial reporting over the tax basis of investments in those foreign subsidiaries (also referred to as book-over-tax outside basis differences). A company may overcome this presumption and forgo recording a deferred tax liability in its financial statements if it can assert that management has the intent and ability to indefinitely reinvest the earnings of its foreign subsidiaries. Pursuant to the 2017 U.S. Tax Cuts and Jobs Act (Tax Act) During 2019, the Company reevaluated its indefinite reinvestment assertion with regards to certain accumulated foreign earnings. The Company considers the undistributed earnings of its remaining foreign subsidiaries to be indefinitely reinvested in foreign operations. The Company has non-U.S. tax loss carryforwards of $12,031,000 (pretax) as of December 31, 2019, and $14,901,000 as of December 31, 2018, that are available for use by the Company between 2020 and 2038. The Company has tax credit carryforwards of $ 5,200,000 as of December 31, 2019, and $ 2,141,000 as of December 31, 2018 that are available for use by the Company between 2020 and 2034. The Company has non-U.S. capital loss carryforwards of $ 621,000 as of December 31, 2019, and $ 0 as of December 31, 2018. The Company’s capital loss carryforwards do not expire . At December 31, 2019, the Company had valuation allowances of $2,994,000, which were attributable to deferred tax assets in Canada, China, India, the Philippines and Singapore. 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, 2019, 2018 and 2017, unrecognized tax benefits totaled $3,273,000, $168,000 and $1,927,000, 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 $3,105,000, $162,000 and $1,917,000 at December 31, 2019, 2018 and 2017, respectively. The Company does not believe that the amount of unrecognized tax benefits related to its current uncertain tax positions will change significantly over the next 12 months. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. In 2019, the Company recognized net interest and penalty expense of $19,000 compared to $26,000 of net interest and penalty income in 2018 and $3,000 of net interest and penalty expense in 2017. At December 31, 2019 the liability for interest and penalties was $49,000 compared to $30,000 at December 31, 2018. 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 2015. Some foreign jurisdictions and various U.S. states jurisdictions may be subject to examination back to 2013. During 2016, the Internal Revenue Service started its audit of the 2011 and 2012 tax years. As of December 31, 2019, these audits were officially settled. During 2018, the Company effectively settled these audits and reversed an unrecognized tax benefit of $1,526,000 that was offset with a corresponding reversal of $1,326,000 related to an income tax refund receivable for which the Company is no longer entitled to receive. Below are reconciliations of the January 1 and December 31 balances of unrecognized tax benefits for 2019, 2018 and 2017: (In thousands) 2019 2018 2017 Unrecognized tax benefits, opening balance $ 168 $ 1,927 $ 1,931 Gross increases – tax positions in prior period 2,760 29 — Gross increases – current period tax positions 355 26 20 Foreign currency translation 7 1 69 Settlement — (1,526 ) — Lapse of statute of limitations (17 ) (289 ) (93 ) Unrecognized tax benefits, ending balance $ 3,273 $ 168 $ 1,927 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | 11. Stockholders’ Equity At December 31, 2019 and 2018, treasury stock consisted of 3,979,735 shares and 3,803,043 shares of common stock, respectively. During 2019, 144,457 |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation | 12. Stock-based Compensation On December 31, 2019, the Company had outstanding stock options, stock awards and SARs awarded under its 2011 Incentive Compensation Plan (2011 Plan). Stock options, stock awards and SARs are currently granted to Company executives and other key employees. 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, 2019, there were 1,032,406 shares available for grant under the 2011 Plan. Compensation expense recorded in the consolidated statements of income for all plans was $8,872,000, $6,837,000, and $7,151,000 for the years ended December 31, 2019, 2018 and 20176, respectively. The increase in stock-based compensation in 2019 versus 2018 was primarily due to the increase in compensation expenses related to SARs. The $28.44 increase in the market value of Company common stock from $74.00 at December 31, 2018 to $102.44 at December 31, 2019 caused the fair value of SARs to increase, resulting in an increase of the Company’s SARs liability. Partially offsetting the increase caused by SARs was the decline in compensation expenses related to performance awards. Management assessment that the profitability performance targets for certain grants would not be achieved led to the lowering of compensation expenses for performance awards. The total income tax benefit recognized in the income statement for share-based compensation arrangements was $1,501,000, $1,849,000, and $2,980,124 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 granted prior to 2017 cliff vest after two years. Stock options granted in 2017, 2018 and 2019 have a three-year one-third For the Years Ended December 31 2019 2018 2017 Expected dividend yield 1.32% 1.34% 1.39% Expected volatility 26.98% 27.41% 30.01% Expected term 7.3 years 7.3 years 7.2 years Risk-free interest rate 2.53% 2.88% 2.22% A summary of stock option activity for the year ended December 31, 2019 is presented below: Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic ($000) Options Outstanding at January 1, 2019 361,543 $ 58.83 Granted 74,262 92.09 Exercised (59,799 ) 50.78 Forfeited (15,184 ) 79.12 Outstanding at December 31, 2019 360,822 66.15 6.62 $ 13,093 Vested or expected to vest at December 31, 2019 350,805 65.69 6.58 12,891 Exercisable at December 31, 2019 270,871 60.09 6.00 11,470 The weighted-average grant-date fair values of options awarded during the years ended December 31, 2019, 2018 and 2017, were $26.49, $22.13, and $24.49, respectively. The total intrinsic values of options exercised during the years ended December 31, 2019, 2018, and 2017 were $2,518,000, $3,879,000, and $5,232,000, respectively. As of December 31, 2019, the total unrecognized compensation cost for unvested stock options was $1,850,000. That cost is expected to be recognized over a weighted-average period of 1.7 years. Cash received from stock option exercises under the Company’s stock option plans for the years ended December 31, 2019, 2018, and 2017 was $3,037,000, $4,163,000, and $3,370,000, respectively. The actual tax benefit realized for the tax deductions from stock option exercises totaled $348,000, $548,000, and $1,455,000 for the years ended December 31, 2019, 2018 and 2017, respectively. Stock Awards In 2017, 2018, and 2019, 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 Directors 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 Directors 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, 2019, is presented below: Shares Weighted-Average Grant Date Fair Value Stock Awards Unvested at January 1, 2019 85,370 $ 73.65 Granted 45,327 89.12 Vested (28,595 ) 77.90 Forfeited (14,768 ) 70.76 Unvested at December 31, 2019 87,334 80.78 The weighted-average grant-date fair values of stock awards granted during the years ended December 31, 2019, 2018 and 2017, were $89.12, $72.06, and $75.94, respectively. As of December 31, 2019, under the current Company assumption as to the number of stock award shares that will vest at the measurement periods ended December 31, 2020 and 2021, there was $3,618,000 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, 2019, 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 granted prior to 2017 cliff vest after two years. SARs granted in 2017, 2018 and 2019 have a three-year one-third The following is a summary of SARs activity for the year ended December 31, 2019: Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value ($000) SARs Outstanding at January 1, 2019 639,146 $ 60.64 Granted 166,518 92.02 Exercised (104,367 ) 51.13 Forfeited (45,880 ) 79.12 Outstanding at December 31, 2019 655,417 68.83 6.89 $ 22,048 The weighted-average grant-date fair values of SARs granted during the years 2019, 2018 and 2017 were $26.43, $22.19, and $24.90, respectively. The fair value for each SARs award was estimated using the Black-Scholes valuation model incorporating the same assumptions as noted for stock options. As of December 31, 2019 and 2018, the liability for cash-settled SARs recorded on the consolidated balance sheet (non-current liabilities) was $4,509,000 and $3,647,000, respectively. At December 31, 2019, there was $4,058,000 of total unrecognized compensation cost related to all unvested SARs. That cost is to be recognized over a weighted-average period of 1.7 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, 2019 | |
Compensation Related Costs [Abstract] | |
Deferred Compensation | 13. 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 periodically purchases its common shares in the open market or in private transactions. 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 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 additional compensation expense or income resulting from the changes in the market values and earnings of the selected investment options was $15,140,000 expense in 2019, $2,329,000 income in 2018 and $4,857,000 expense in 2017. The main factor in the increase of the 2019 deferred compensation expense versus 2018 deferred compensation income was a $28.44 per share increase in the market price of the Company’s common stock in 2019 versus a $4.97 per share decline in the price of stock in 2018. The Company’s deferred compensation liability was $59,031,000 |
Postretirement Benefit Plans
Postretirement Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Postretirement Benefit Plans | 14. 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 during the years 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 2019 2018 2019 2018 Change in benefit obligation Benefit obligation at beginning of year $ 158,594 $ 171,358 $ 20,006 $ 24,048 Interest cost 6,616 6,194 554 565 Actuarial (gain) loss 19,251 (11,494 ) 1,045 (2,129 ) Benefits paid (7,962 ) (7,464 ) (592 ) (1,255 ) Foreign exchange impact — — 837 (1,223 ) Benefit obligation at end of year $ 176,499 $ 158,594 $ 21,850 $ 20,006 (In thousands) United States United Kingdom 2019 2018 2019 2018 Change in plan assets Fair value of plan assets at beginning of year $ 134,198 $ 147,908 $ 20,576 $ 24,168 Actual return (loss) on plan assets 33,875 (11,558 ) 2,963 (1,583 ) Employer contributions 312 5,312 476 494 Benefits paid (7,962 ) (7,464 ) (592 ) (1,254 ) Foreign exchange impact — — 934 (1,249 ) Fair value of plan assets at end of year $ 160,423 $ 134,198 $ 24,357 $ 20,576 Over (Under) funded status at end of year $ (16,076 ) $ (24,396 ) $ 2,507 $ 570 The amounts recognized in the consolidated balance sheets at December 31 consisted of: (In thousands) United States United Kingdom 2019 2018 2019 2018 Non-current asset $ 1,479 $ — $ 2,507 $ 570 Current liability (301 ) (302 ) — — Non-current liability (17,254 ) (24,094 ) — — Net amount recognized $ (16,076 ) $ (24,396 ) $ 2,507 $ 570 The amounts recognized in accumulated other comprehensive income at December 31 consisted of: (In thousands) United States United Kingdom 2019 2018 2019 2018 Net actuarial loss $ 37,671 $ 45,334 $ 4,460 $ 5,849 Below is information for pension plans with projected benefit obligations in excess of plan assets at December 31: (In thousands) United States United Kingdom 2019 2018 2019 2018 Projected benefit obligation $ 141,839 $ 158,594 $ — $ — Accumulated benefit obligation 141,839 158,594 — — Fair value of plan assets 124,284 134,198 — — Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income Net periodic benefit costs for the years ended December 31, 2019, 2018 and 2017, were as follows: (In thousands) United States United Kingdom 2019 2018 2017 2019 2018 2017 Interest cost $ 6,616 $ 6,194 $ 6,651 $ 554 $ 565 $ 592 Expected return on plan assets (9,450 ) (9,284 ) (9,288 ) (787 ) (885 ) (797 ) Amortization of net actuarial loss 2,490 3,814 3,085 244 219 382 Net periodic benefit cost $ (344 ) $ 724 $ 448 $ 11 $ (101 ) $ 177 Other changes in plan assets and benefit obligations recognized in other comprehensive income for the years ended December 31, 2019, 2018 and 2017, were as follows: (In thousands) United States United Kingdom 2019 2018 2017 2019 2018 2017 Net actuarial (gain) loss $ (5,174 ) $ 9,348 $ 2,864 $ (1,144 ) $ 325 $ (1,318 ) Amortization of net actuarial loss (2,490 ) (3,814 ) (3,085 ) (244 ) (219 ) (382 ) Total recognized in other comprehensive income $ (7,664 ) $ 5,534 $ (221 ) $ (1,388 ) $ 106 $ (1,700 ) Total recognized in net periodic benefit cost and other comprehensive income $ (8,008 ) $ 6,258 $ 227 $ (1,377 ) $ 5 $ (1,523 ) The estimated amounts that will be reclassified from accumulated other comprehensive income into net periodic benefit cost in 2020 are as follows: (In thousands) United States United Kingdom Net actuarial loss $ 4,210 $ 81 Estimated Future Benefit Payments (In thousands) United States United Kingdom 2020 $ 8,228 $ 507 2021 8,701 530 2022 9,198 575 2023 9,603 616 2024 9,908 653 2025-2029 51,412 3,938 Assumptions The weighted-average assumptions used to determine benefit obligations at December 31 were as follows: United States United Kingdom 2019 2018 2019 2018 Discount rate 3.30 % 4.30 % 2.10 % 2.80 % The weighted-average assumptions used to determine net periodic benefit costs for years ended December 31 were as follows: United States United Kingdom 2019 2018 2017 2019 2018 2017 Discount rate 4.30 % 3.67 % 4.17 % 2.80 % 2.40 % 2.60 % Expected long-term return on plan assets 6.75 % 6.75 % 7.00 % 3.82 % 3.71 % 3.77 % In 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 a combination of active and passive investment strategies. 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 equity 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 exposure is now categorized within mid cap equity. Risk is diversified among multiple asset categories, managers, styles, and securities. The investment management firm recommends asset allocations based on the time horizon available for investment, funded status, the nature of the plan cash flows and liabilities and other factors. The asset allocation targets are approved by the Company’s Plan Committee. Allowable investment categories include: Equities: Common stocks of large, medium, and small companies (company stock), including both U.S. and non-U.S. based companies. The long-term target allocation for equities, excluding Company stock, is approximately 45 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 38 percent. The fixed income portfolio has a duration similar to the plan’s liability stream and is designated to perform consistent with the movement of the plan’s liabilities. Real Estate: Public real estate funds using office, apartment, industrial, retail and other property types. In prior years Real Estate investments were reflected as a separate line item within the Mutual Funds category. Effective 2017, the majority of Real Estate assets have been removed from this category and are currently being captured within the Equities assets category. This change was consistent with the Global Industry Classification Standard (GICS) to better reflect the equity security features of Real Estate Investment Trusts (REITs). 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 32,299 shares of the Company’s common stock to the Company’s ESOP trust on February 21, 2019. 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 may 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. The target allocation for cash is two percent of plan assets. 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 trustee overall strategy is to achieve a mix of investments for long-term growth and near-term benefit payments with a wide diversification of asset types. 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, 2019, the pension asset allocation was 31 percent equities, 58 percent fixed income, five 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, 2019 and 2018, by asset category, were as follows: December 31, 2019 (In thousands) Level 1 Level 2 Level 3 Total Cash and Cash Equivalents $ 7,261 $ — $ — $ 7,261 Equity Securities U.S. Equities 50,319 — — 50,319 Non-U.S. Equities 19,697 — — 19,697 Employer Securities 27,234 — — 27,234 Total Equities 97,250 — — 97,250 Fixed Income Securities U.S. Corporate Bonds — 36,242 — 36,242 U.S. Government and Agency Bonds 11,080 — — 11,080 Other Bonds — 8,590 — 8,590 Total Fixed Income 11,080 44,832 — 55,912 Total $ 115,591 $ 44,832 $ — $ 160,423 December 31, 2018 (In thousands) Level 1 Level 2 Level 3 Total Cash and Cash Equivalents $ 4,935 $ — $ — $ 4,935 Equity Securities U.S. Equities 34,751 — — 34,751 Non-U.S. Equities 27,415 — — 27,415 Employer Securities 22,063 — — 22,063 Total Equities 84,229 — — 84,229 Fixed Income Securities U.S. Corporate Bonds — 29,659 — 29,659 U.S. Government and Agency Bonds 6,314 3,139 — 9,453 Other Bonds — 5,922 — 5,922 Total Fixed Income 6,314 38,720 — 45,034 Total $ 95,478 $ 38,720 $ — $ 134,198 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 2019 or 2018 were categorized as Level 3. U.K. Plan The Company’s asset allocations for its U.K. pension plans at December 31, 2019 and 2018, by asset category, were as follows: December 31, 2019 (In thousands) Level 1 Level 2 Level 3 Total Cash $ 252 $ 1,120 $ — $ 1,372 Equity Securities Pooled Pension Funds — 7,533 — 7,533 Fixed Income Pooled Pension Funds — 14,247 — 14,247 Insurance Contracts — — 1,205 1,205 Total $ 252 $ 22,900 $ 1,205 $ 24,357 December 31, 2018 (In thousands) Level 1 Level 2 Level 3 Total Cash $ 205 $ — $ — $ 205 Equity Securities Pooled Pension Funds — 12,750 — 12,750 Fixed Income Pooled Pension Funds — 6,378 — 6,378 Insurance Contracts — — 1,243 1,243 Total $ 205 $ 19,128 $ 1,243 $ 20,576 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 2018 and 2019: (In thousands) Insurance Fair value, December 31, 2017 $ 1,698 Sale proceeds (benefit payments) (129 ) Change in unrealized gain (247 ) Foreign exchange impact (79 ) Fair value, December 31, 2018 $ 1,243 Sale proceeds (benefit payments) (121 ) Change in unrealized gain 37 Foreign exchange impact 46 Fair value, December 31, 2019 $ 1,205 Long-term Rate of Return for Plan Assets U.S. Plans The overall expected long-term rate of return on assets of 6.75 percent that was used to develop the 2019 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 4.53 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 6.45 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. 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 4.3 percent added to the risk-free rate. Cash is assumed to have a long-term return of 0.8 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 does not expect to make any 2020 contributions to the funded U.S. qualified defined benefit plans. The Company expects to contribute $301,000 Defined Contribution Plans The Company sponsors retirement savings defined contribution retirement plans that cover eligible U.S. and U.K. employees. The Company’s U.S. retirement plans include two qualified plans, one of which is a 401(k) plan and one of which is an employee stock ownership plan, and one non-qualified supplemental executive plan. Prior to 2018, the Company made profit sharing contributions into the qualified retirement plans for its U.S. employees and in 2018 and 2019 made profit sharing contributions into the qualified retirement plans for U.S. employees and for certain non-U.S. employees. Profit sharing contributions were determined using a formula applied to Company earnings. In 2017 and 2018, profit sharing contributions for U.S. employees, who received the majority of profit sharing contributions, were made partly in cash paid to the 401(k) plan and partly in Company common stock. In 2019, profit sharing contributions for U.S. employees were made to the employee stock ownership plan. Profit sharing contributions are allocated to participant accounts on the basis of participant base earnings. Effective January 1, 2018, the Company amended its U.S. 401(k) plan and its profit sharing formula, which resulted in a higher potential contribution percentage to the U.S. 401(k) plan and a lower potential profit sharing contribution percentage relative to prior years. Defined contribution expenses for the Company’s qualified defined contribution plans and statutory profit sharing contributions were as follows: (In thousands) 2019 2018 2017 Retirement contributions $ 7,328 $ 7,617 $ 4,998 Profit sharing contributions 4,702 4,182 7,002 Total $ 12,030 $ 11,799 $ 12,000 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, 2019 and 2018, the trust asset balances were $1,744,000 and $1,444,000, respectively, and the supplemental plan liability balances were $1,819,000 and $1,519,000, 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. Certain foreign locations are required by law to make profit sharing contributions to employees based on statutory formulas. For the years ended December 31, 2019, 2018 and 2017, the Company recognized $935,000, $374,000 and $398,000, respectively, of statutory profit sharing expense and are included in the above table. In total, approximately 77 percent of union and non-union employees are eligible for either Company’s sponsored or statutory profit sharing contributions. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Payables And Accruals [Abstract] | |
Accrued Liabilities | 15. Accrued Liabilities The composition of accrued liabilities was as follows: December 31 (In thousands) 2019 2018 Accrued payroll and benefits $ 57,894 $ 53,782 Accrued customer rebates 25,148 24,833 Other accrued liabilities 38,225 16,955 Total accrued liabilities $ 121,267 $ 95,570 |
Other Non-Current Liabilities
Other Non-Current Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other Non-Current Liabilities | 16. Other Non-Current Liabilities The composition of other non-current liabilities was as follows: December 31 (In thousands) 2019 2018 Deferred revenue $ 891 $ 1,215 Environmental and legal matters 12,023 20,404 Deferred compensation liability 49,835 43,819 Pension liability 19,407 26,722 Other non-current liabilities 14,024 11,704 Total other non-current liabilities $ 96,180 $ 103,864 |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingencies | 17. Contingencies There are a variety of legal proceedings pending or threatened against the Company that occur in the normal course of the Company’s business, the majority of which relate to environmental assessment, protection and remediation matters. Some of these proceedings may result in fines, penalties, judgments or costs being assessed against the Company at some future time. The Company’s operations are subject to extensive local, state and federal regulations, including CERCLA and the Superfund amendments of 1986 (Superfund) as well as comparable regulations applicable to the Company’s foreign locations. Over the years, the Company has received requests for information related to or has been named by government authorities as a PRP at a number of sites where cleanup costs have been or may be incurred by the Company under CERCLA and similar state statutes. In addition, damages are being claimed against the Company in general liability actions for alleged personal injury or property damage in the case of some disposal and plant sites. The Company believes that it has made adequate provisions for the costs it is likely to incur with respect to these sites and claims. In determining the appropriate level of environmental reserves, the Company considers several factors such as information obtained from investigatory studies; changes in the scope of remediation; the interpretation, application and enforcement of laws and regulations; changes in the costs of remediation programs; the development of alternative cleanup technologies and methods; and the relative level of the Company’s involvement at various sites for which the Company is allegedly associated. The level of annual expenditures for remedial, monitoring and investigatory activities will change in the future as major components of planned remediation activities are completed and the scope, timing and costs of existing activities are changed. As of December 31, 2019, the Company estimated a range of possible environmental and legal losses of $25.9 million to $43.7 million. Within the range of possible environmental and legal losses, management has currently concluded that no single amount is more likely to occur than any other amounts in the ranges and, thus, has accrued at the lower end of the ranges. These accruals totaled $25.9 For certain sites, the Company has responded to information requests made by federal, state or local government agencies but has received no response confirming or denying the Company’s stated positions. As such, estimates of the total costs, or range of possible costs, of remediation, if any, or the Company’s share of such costs, if any, cannot be determined with respect to these sites. Consequently, the Company is unable to predict the effect thereof on the Company’s financial position, cash flows and results of operations. Based upon the Company’s present knowledge with respect to its involvement at these sites and the possibility of other viable entities’ responsibilities for cleanup, management believes that the Company has no material liability at these sites and that these matters, individually and in the aggregate, will not have a material effect on the Company’s financial position. However, in the event of one or more adverse determinations with respect to such sites in any annual or interim period, the effect on the Company’s cash flows and results of operations for those periods could be material. Following are summaries of the Company’s major contingencies at December 31, 2019: Maywood, New Jersey Site The Company’s property in Maywood, New Jersey and property formerly owned by the Company adjacent to its current site and other nearby properties (collectively, the Maywood site) were listed on the National Priorities List in September 1993 pursuant to the provisions of CERCLA because of alleged chemical contamination. Pursuant to (i) September 21, 1987 Administrative Order on Consent entered into between the USEPA and the Company for property formerly owned by the Company at the Maywood site and (ii) the issuance of an order on November 12, 2004 by the USEPA to the Company for property currently owned by the Company at the Maywood site, the Company has completed various Remedial Investigation Feasibility Studies (RI/FS), and on September 24, 2014, USEPA issued its Record of Decision (ROD) for chemically-contaminated soil at the Maywood site, which requires the Company to perform remedial cleanup of the soil and buried waste. The USEPA has not yet issued a ROD for chemically-contaminated groundwater for Maywood site. Based on the most current information available, the Company believes its recorded liability is reasonable having considered the range of estimated costs of remediation for the Maywood site. The estimate of the cost of remediation for the Maywood site could change as the Company continues to hold discussions with the USEPA, as the design of the remedial action is finalized, if a groundwater ROD is issued or if other PRPs are identified. The ultimate amount for which the Company is liable could differ 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 at the Maywood site were required. In addition, under the terms of a settlement agreement reached on November 12, 2004, the U.S. Department of Justice and the Company agreed to fulfill the terms of a Cooperative Agreement reached in 1985 under which the United States has taken title to and is responsible for the removal of radioactive waste at the Maywood site and has incurred past and will incur 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 generated by the Company’s at several sites in New Jersey, including the D’Imperio site. The Company was named as a PRP in an October 2, 1998 lawsuit in the U.S. District court for the district of New Jersey that involved the D’Imperio site. In 2019, the PRPs were provided with updated remediation cost estimates by the PRP group technical consultant and project manager which the Company considered in its determination of its range of estimated possible losses and liability balance. The changes in range of possible losses and liability balance related to such updated remediation cost estimates were immaterial. Remediation work is continuing at the D’Imperio site. Based on current information, the Company believes that its recorded liability is reasonable having considered the range of estimated cost of remediation for the D’Imperio site. Depending on the ultimate costs of the remediation at this site, the amount for which the Company is liable could differ materially from the current estimates. Wilmington Site The Company is currently contractually obligated to contribute to the environmental response costs associated with the Company’s formerly-owned site in Wilmington, Massachusetts (the Wilmington site). Remediation at this site is being managed by its current owner to whom the Company sold the property in 1980. Under the Company’s October 1, 1993 agreement with the current owner of the Wilmington site, once total site remediation costs exceed certain levels, the Company is obligated to contribute up to five percent of future response costs associated with this site with no limitation on the ultimate amount of the Company’s contributions. The Company has paid the current owner $2.8 million for the Company’s portion of environmental response costs at the Wilmington site through December 31, 2019. The Company has recorded a liability for its portion of the estimated remediation costs for the site. Depending on the ultimate cost of the remediation at this site, the amount for which the Company is liable could differ materially from the current estimates. The Company and other prior owners of the Wilmington site also entered into an agreement in April 2004 waiving certain statute of limitations defenses for claims that may be filed by the Town of Wilmington, Massachusetts, in connection with this site. While the Company has denied any liability for any such claims, the Company agreed to this waiver while the parties continue to discuss the resolution of any potential claim which may be filed. Other U.S. Sites Through the regular environmental monitoring of its plant production sites, the Company discovered levels of chemical contamination that were above thresholds allowed by law at its Millsdale, Illinois and Fieldsboro, New Jersey plants. The Company voluntarily reported its results to the applicable state environmental agencies. As a result, the Company is required to perform self-remediation of the affected areas. In the fourth quarter of 2016, the Company recognized a charge for the estimated cost of remediating the sites. Remediation work is continuing at these sites. Based on current information, the Company believes that its recorded liability for the remediation of the affected areas is appropriate based on the estimate of expected costs. However, actual costs could differ materially from current estimates. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | 18. 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, 2019, 2018 and 2017: (In thousands) Surfactants Polymers Specialty Products Segment Totals 2019 Net sales $ 1,272,723 $ 512,347 $ 73,675 $ 1,858,745 Operating income 122,780 69,567 16,415 208,762 Assets 907,032 338,179 86,718 1,331,929 Capital expenditures 69,725 29,188 4,441 103,354 Depreciation and amortization expenses 48,422 22,151 5,483 76,056 2018 Net sales $ 1,385,932 $ 527,420 $ 80,505 $ 1,993,857 Operating income (1) 133,518 66,373 11,661 211,552 Assets 850,553 351,690 82,957 1,285,200 Capital expenditures 51,543 26,663 6,192 84,398 Depreciation and amortization expenses 50,514 23,253 5,150 78,917 2017 Net sales $ 1,297,555 $ 546,634 $ 80,818 $ 1,925,007 Operating income (1) 125,712 85,745 9,965 221,422 Assets 881,415 355,065 75,452 1,311,932 Capital expenditures 50,400 21,146 4,234 75,780 Depreciation and amortization expenses 49,102 22,998 5,019 77,119 (1) The 2018 and 2017 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO . Below are reconciliations of segment data to the consolidated financial statements: (In thousands) 2019 2018 2017 Operating income - segment totals (1) $ 208,762 $ 211,552 $ 221,422 Business restructuring (2) (2,744 ) (2,588 ) (3,069 ) Unallocated corporate expenses (3) (78,758 ) (59,699 ) (63,513 ) Total operating income 127,260 149,265 154,840 Interest expense, net (5,932 ) (10,771 ) (11,444 ) Other, net 4,571 (725 ) 3,486 Consolidated income before income taxes (1) $ 125,899 $ 137,769 $ 146,882 Assets - segment totals $ 1,331,929 $ 1,285,200 $ 1,311,932 Unallocated corporate assets (1)(4) 247,438 229,414 190,960 Consolidated assets $ 1,579,367 $ 1,514,614 $ 1,502,892 Capital expenditures - segment totals $ 103,354 $ 84,398 $ 75,780 Unallocated corporate expenditures 2,218 2,249 2,833 Consolidated capital expenditures $ 105,572 $ 86,647 $ 78,613 Depreciation and amortization expenses – segment totals $ 76,056 $ 78,917 $ 77,119 Unallocated corporate depreciation expenses 2,645 2,198 1,903 Consolidated depreciation and amortization expenses $ 78,701 $ 81,115 $ 79,022 (1) The 2018 and 2017 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO (2) See Note 23 regarding business restructuring 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 2019, 2018 and 2017 were primarily attributable to changes in the balance of U.S. cash and cash equivalents, which are not allocated to segments. Below is certain Company-wide geographic data for the years ended December 31, 2019, 2018 and 2017: (In thousands) 2019 2018 2017 Net sales (1) United States $ 1,115,993 $ 1,193,938 $ 1,159,578 France 145,933 171,010 176,052 Poland 156,391 170,474 188,244 United Kingdom 96,842 105,732 99,069 Brazil 102,590 100,328 109,960 All other countries 240,996 252,375 192,104 Total $ 1,858,745 $ 1,993,857 $ 1,925,007 Long-lived assets (2) United States $ 462,199 $ 427,274 $ 420,342 Germany 30,084 29,151 29,116 Singapore 28,741 30,838 33,530 Brazil 46,740 48,427 55,974 China 27,201 29,030 30,849 United Kingdom 21,551 20,225 21,657 All other countries 64,239 61,145 50,631 Total $ 680,755 $ 646,090 $ 642,099 (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. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 19. Earnings Per Share Below is the computation of basic and diluted earnings per share for the years ended December 31, 2019, 2018 and 2017: (In thousands, except per share amounts) 2019 2018 2017 Computation of Basic Earnings per Share Net income attributable to Stepan Company (1) $ 103,129 $ 111,117 $ 100,774 Weighted-average number of shares outstanding 23,054 23,022 22,946 Basic earnings per share (1) $ 4.47 $ 4.83 $ 4.39 Computation of Diluted Earnings per Share Net income attributable to Stepan Company (1) $ 103,129 $ 111,117 $ 100,774 Weighted-average number of shares outstanding 23,054 23,022 22,946 Add weighted-average net shares from assumed exercise of options (under treasury share method) (2) 97 101 161 Add weighted-average net shares related to unvested stock awards (under treasury share method) 2 3 8 Add weighted-average net shares from assumed exercise of SARs (under treasury share method) 125 110 142 Add weighted-average contingently issuable net shares related to performance stock awards (under treasury share method) 38 89 120 Weighted-average shares applicable to diluted earnings 23,316 23,325 23,377 Diluted earnings per share (1) $ 4.42 $ 4.76 $ 4.31 (1) The 2018 and 2017 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. (2) Options/SARs to purchase 107,125, 50,770 and 18,630 shares of common stock were not included in the computations of diluted earnings per share for the years ended December 31, 2019, 2018 and 2017, respectively. The options’/SARs’ exercise prices were greater than the average market price for the common stock and the effect of the options/SARs on earnings per share would have been antidilutive. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 20. 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, 2019, 2018 and 2017: (In thousands) Foreign Currency Translation Adjustments Defined Benefit Pension Plan Adjustments Cash Flow Hedge Adjustments Total Balance at December 31, 2016 $ (96,775 ) $ (30,790 ) $ 100 $ (127,465 ) Other comprehensive income before reclassifications 26,214 (582 ) — 25,632 Amounts reclassified from AOCI — 2,279 (9 ) 2,270 Net current period other comprehensive income 26,214 1,697 (9 ) 27,902 Balance at December 31, 2017 $ (70,561 ) $ (29,093 ) $ 91 $ (99,563 ) Other comprehensive income before reclassifications (37,920 ) (7,080 ) — (45,000 ) Amounts reclassified from AOCI — 3,090 (10 ) 3,080 Net current period other comprehensive income (37,920 ) (3,990 ) (10 ) (41,920 ) Balance at December 31, 2018 $ (108,481 ) $ (33,083 ) $ 81 $ (141,483 ) Other comprehensive income before reclassifications 4,444 4,112 — 8,556 Amounts reclassified from AOCI — 2,091 (9 ) 2,082 Remeasurement adjustment related to the Tax Act (1) — (5,325 ) — (5,325 ) Net current period other comprehensive income 4,444 878 (9 ) 5,313 Balance at December 31, 2019 $ (104,037 ) $ (32,205 ) $ 72 $ (136,170 ) Amounts reclassified out of AOCI for the three years ended December 31, 2019, 2018 and 2017, is displayed below: Amounts Reclassified from AOCI (1) (In thousands) Affected Line Item in Consolidated 2019 2018 2017 Statements of Income Amortization of defined pension items: Prior service cost $ (12 ) $ (12 ) $ (14 ) Actuarial loss (2,739 ) (4,059 ) (3,509 ) $ (2,751 ) (4,071 ) (3,523 ) Total before tax (2) 660 981 1,244 Tax benefit $ (2,091 ) $ (3,090 ) $ (2,279 ) Net of tax Gains and losses on cash flow hedges: Foreign exchange contracts $ 9 $ 10 $ 9 Cost of sales 9 10 9 Total before tax — — — Tax benefit $ 9 $ 10 $ 9 Net of tax Total reclassifications for the period $ (2,082 ) $ (3,080 ) $ (2,270 ) Net of tax (1) Amounts in parentheses denote expense to statement of income. (2) This component of accumulated other comprehensive income is included in the computation of net periodic benefit cost (see Note 14 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, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | 21. Acquisitions 2019 Acquisition On December 17, 2019, the Company acquired an oilfield demulsifier product line. The purchase price of the acquisition was $9,000,000 and was paid with cash on hand. This acquisition was accounted for as a business combination and the assets were measured and recorded at their estimated fair values. The primary assets acquired were intangibles, mostly comprised of goodwill ($3,497,000), product know-how ($1,500,000) and customer relationships ($3,200,000). A small amount of inventory was also acquired. All of the acquired assets are included within the Company’s Surfactants segment. The fair value analysis remains in process and is expected to be finalized during the first half of 2020. Pro forma financial information has not been included because revenues and earnings of the Company’s consolidated entity would not have been materially different than reported had the acquisition date been January 1, 2018. The acquired business did not impact the Company’s 2019 financial results. 2018 Acquisition On March 26, 2018, the Company through a subsidiary in Mexico closed on a previously announced agreement with BASF Mexicana, S.A.DE C.V. (BASF) to acquire their production facility in Ecatepec, Mexico and a portion of their associated surfactants business. The facility is located close to Mexico City and has over 50,000 metric tons of capacity, 124,000 square feet of warehouse space, a large laboratory and office space. The acquired assets and business are included in the Company’s Surfactants segment. The purchase price of the acquisition was $21,475,000 and was paid with cash on hand. The primary assets acquired were land, buildings, machinery and equipment and inventory. In the third quarter of 2018 the Company reached alignment with BASF on the final value of inventory acquired. The incremental inventory and related value-added taxes totaled $1,377,000 and increased the total assets acquired in the transaction from $21,475,000 to $22,852,000 as of December 31, 2019. The final inventory settlement payment of $1,377,000 was made in the fourth quarter of 2018. The acquisition was accounted for as a business combination, and, accordingly, the assets acquired were measured and recorded at their estimated fair values. No intangible assets were identified as part of the acquisition. The following table summarizes the assets acquired as a result of the acquisition: (In thousands) Assets: Property, plant and equipment $ 14,464 Inventory 5,687 Other Receivable 2,701 Total assets acquired $ 22,852 The acquired business had a minimal impact on the Company’s 2018 financial results. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contracts with Customers | 22. Revenue from Contracts with Customers In the majority of instances the Company deems a contract with a customer to exist when a purchase order is received from a customer for a specified quantity of product or products and the Company acknowledges receipt of such purchase order. In some instances the Company has entered into manufacturing supply agreements with customers but these agreements typically do not bind a customer to any purchase volume requirements and thus an obligation is not created until the customer submits a purchase order to the Company. The Company’s contracts typically have a single performance obligation that is satisfied at the time product is shipped and control passes to the customer. For a small portion of the business, performance obligations are deemed satisfied when product is delivered to a customer location. Revenue is recognized when performance obligations under terms of a contract with a customer have been satisfied, which is predominantly at a point in time. With the 2018 adoption of ASU 2014-09, revenue is currently recognized when a customer obtains control of a product as compared to the “risk and rewards” criteria used in prior years. However, in 2018, the adoption of ASU 2014-09 did not have a material impact on the Company’s financial position or results of operations. Payment terms on sales of product typically range from 30 to 60 days. As a result, the Company has concluded it does not provide any significant benefits of financing to its customers. The Company has elected to account for shipping and handling as activities to fulfill a promise to transfer the good. As such, shipping and handling fees billed to customers in a sales transaction are recorded in Net Sales and shipping and handling costs incurred are recorded in Cost of Sales. The Company has elected to exclude from Net Sales any value added, sales and other taxes that it collects concurrently with revenue producing activities. These accounting policy elections are consistent with the manner in which the Company has historically recorded shipping and handling fees and taxes. In some instances, a customer may qualify for a rebate based on the volume of purchases made over a specified period of time, typically a quarterly or annual period. The Company accrues these rebates for each customer under the most likely amount method by estimating the expected volume of total purchases for each customer using actual volumes, customer projections and historical order patterns. These estimated rebates are treated as a reduction to Net Sales with the offset being recognized within Current Liabilities. This methodology is consistent with the manner in which the Company has historically estimated and recorded volume based rebates. In other instances, discounts for early payments are offered to certain customers. These discounts are principally accrued for based the historical use of discounts for all customers using the expected-value method. These estimated early payment discounts are accounted for as a reduction to Net Sales similarly to volume rebates. These forms of variable consideration are considered part of the transaction price. The Company typically warrants its products from defects. The Company has concluded that these represent assurance-type warranties as opposed to service-type warranties. Product defects are rare in occurrence. As a result, the Company does not maintain any warranty accruals until such time as it is probable a product defect exists. As of December 31, 2019, the Company had $350,000 of contract liabilities and no contract assets. A contract liability would typically arises when an advance or deposit is received from a customer before the Company recognizes revenue. In practice, this is rare as it would require a customer to make a payment prior to a performance obligation being satisfied. When such situations do arise, the Company would maintain a deferred revenue liability until the time a performance obligation has been satisfied. The Company did not recognize any revenue in the current period from any pre-existing contract liability balance. The tables below provide a geographic disaggregation of net sales for the years ended December 31, 2019, 2018 and 2017. The Company’s business segmentation by geographic region most effectively captures the nature and economic characteristics of the Company’s revenue streams impacted by economic factors. 2019 (In thousands) Surfactants Polymers Specialty Products Total Geographic Market North America $ 766,341 $ 314,549 $ 61,501 $ 1,142,391 Europe 240,711 158,455 12,174 411,340 Latin America 212,405 3,304 — 215,709 Asia 53,266 36,039 — 89,305 Total $ 1,272,723 $ 512,347 $ 73,675 $ 1,858,745 2018 (In thousands) Surfactants Polymers Specialty Products Total Geographic Market North America $ 831,592 $ 323,360 $ 68,201 1,223,153 Europe 276,742 172,632 12,304 461,678 Latin America 212,824 3,463 — 216,287 Asia 64,774 27,965 — 92,739 Total $ 1,385,932 $ 527,420 $ 80,505 $ 1,993,857 2017 (In thousands) Surfactants Polymers Specialty Products Total Geographic Market North America $ 763,044 $ 329,629 $ 66,906 1,159,579 Europe 275,121 188,244 13,912 477,277 Latin America 190,802 4,451 — 195,253 Asia 68,588 24,310 — 92,898 Total $ 1,297,555 $ 546,634 $ 80,818 $ 1,925,007 |
Business Restructuring
Business Restructuring | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring And Related Activities [Abstract] | |
Business Restructuring | 23. Business Restructuring 2019 Restructuring In 2019, the Company restructured its Specialty Products office in the Netherlands and eliminated select positions from the site’s supply chain, quality control and research and development areas. This restructuring was designed to better align the number of personnel with current business requirements and reduce costs at the site. As a result, severance and early lease termination expenses of $554,000 and $122,000, respectively, were recognized during the year ended December 31, 2019. 2018 Restructuring During the third quarter of 2018, the Company approved a plan to shut down Surfactants operations at its German plant site. As of December 31, 2019, an aggregate of $2,313,000 shut down related expense had been recognized at the site. This aggregate expense is comprised of $1,404,000 of asset and spare part write downs recognized in 2018 and $909,000 of decommissioning costs recognized in the year ended December 31, 2019. Decommissioning costs associated with the shutdown are expected to continue in 2020. 2017 Restructuring During the fourth quarter of 2017, the Company approved a plan to restructure a portion of its Fieldsboro, New Jersey production facility. This facility is a part of the Surfactant reportable segment. This decision was made to improve future asset utilization and reduce the North American cost base going forward. As a result, the Company recorded $915,000 of restructuring expenses which reflected termination benefits for select plant employees. In addition, the Company reduced the useful lives of the manufacturing assets that were impacted by the restructuring and recorded $1,290,000 of accelerated depreciation. This expense was recorded in the cost of sales line of the consolidated statements of income. In the first quarter of 2019, the Company recognized a $251,000 favorable adjustment to the amount of termination benefits initially recorded. Also, in June 2017, the Company eliminated 11 positions from manufacturing operations at its Singapore plant. The Singapore plant is part of the Company’s Surfactant segment. The reduction in positions was made to better align the number of personnel with current business requirements and to reduce costs at that site. As a result of the reduction in workforce, termination expense of $132,000 was recognized in the second quarter of 2017 and there was no remaining liability for the termination pay as of December 31, 2017. 2016 Restructuring In May 2016, the Company announced plans to shut down its Long Mills, Ontarion, Canada (Longford Mills) manufacturing facility, a part of the Surfactant reportable segment, by December 31, 2016. The shutdown plan was implemented to improve the Company’s asset utilization in North America and to reduce the Company’s fixed cost base. Manufacturing operations at the Longford Mills plant ceased by the end of 2016, and production of goods manufactured at the facility was transferred to other Company North American production sites. Decommissioning of the assets is expected to continue throughout 2020. As of December 31, 2019, $7,484,000 of aggregate restructuring expense had been recognized, reflecting $1,644,000 of termination benefits for approximately 30 employees and $5,840,000 for other expenses, principally site decommissioning costs. |
Insurance Recovery
Insurance Recovery | 12 Months Ended |
Dec. 31, 2019 | |
Insurance Recovery [Abstract] | |
Insurance Recovery | 24. Insurance Recovery The Company received insurance recovery proceeds of $8,965,000 in December 2019 for damaged equipment, incremental supply chain expenses and business interruption losses pertaining to the first quarter 2019 sulfonation equipment failure at the Company’s plant in Ecatepec, Mexico. The insurance recovery was recorded as reduction of cost of sales in the consolidated statement of income for the year ended December 31, 2019. |
Customer Claims
Customer Claims | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Customer Claims | 25. Customer Claims In the fourth quarter of 2016, the Company established a reserve for two customer claims which alleged that product manufactured by the Company may have caused performance problems with the customers’ products. The combined amount of the reserve 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. In the fourth quarter of 2017, the Company paid $2,709,000 for one of the claims and reversed the remainder of the reserve for the claim. The claim reversal was recorded within net sales. The second claim for $703,000 was paid in the second quarter of 2019 and was covered by insurance. |
Statement of Cash Flows - Nonca
Statement of Cash Flows - Noncash Investing and Financing Activities | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Statement of Cash Flows - Noncash Investing and Financing Activities | 26. Statement of Cash Flows – Noncash Investing and Financing Activities Noncash investing activities included liabilities (accounts payable) incurred for property, plant and equipment expenditures of approximately $16,890,000, $15,119,000, and $12,600,000 that were unpaid at December 31, 2019, 2018 and 2017, respectively. Noncash financing activities included 96,095 shares of Company common stock (valued at $8,893,000), 99,497 shares of Company common stock (valued at $7,931,000) and 35,372 shares of Company common stock (valued at $2,941,000) issued in connection with the Company’s stock award plan in 2019, 2018 and 2017, respectively. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 27. Subsequent Events On January 19, 2020, the Company experienced a power disruption that impacted its Millsdale, Illinois facility. This power outage combined with below freezing temperatures led to significant production and operational challenges. During the period that followed the Millsdale facility operated on a partial basis and used existing inventories to serve its customers. On February 17, 2020, operational issues impacted the Millsdale site’s waste water treatment plant (WWTP) and forced the Company to stop production at the site. The Company has subsequently restarted polyol production using a temporary solution. The Company announced on February 26, 2020, that the waste water treatment plant at the Millsdale facility was back in operation and that the facility was producing Surfactant products. The Company is working to resume phthalic anhydride production. As a result of the WWTP plant being down and low inventory levels the Company declared Force Majeure for the supply of phthalic anhydride and certain surfactant product lines. The Company is using its global production network and working with customers to minimize the impact of this supply disruption. At this time, the Company is not able to quantify the extent of the impact from this event on the Company’s statement of financial position, results of operations or cash flows. The Company is working with its insurance provider to recover the losses related to this incident. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data | Selected Quarterly Financial Data (In thousands, except per share data) Unaudited 2019 Quarter First Second Third Fourth Year Net Sales $ 489,170 $ 473,003 $ 451,582 $ 444,990 $ 1,858,745 Gross Profit 84,609 92,959 77,402 84,744 339,714 Operating Income 29,738 41,065 27,966 28,491 127,260 Interest, net (1,853 ) (1,766 ) (1,402 ) (911 ) (5,932 ) Income Before Income Taxes 31,030 39,534 27,449 27,886 125,899 Net Income 24,978 30,210 25,880 22,033 103,101 Net Income Attributable to Stepan Company 24,984 30,218 25,889 22,038 103,129 Per Diluted Share 1.07 1.30 1.11 0.95 4.42 2018 Quarter First Second Third Fourth Year Net Sales $ 499,335 $ 519,866 $ 507,997 $ 466,659 $ 1,993,857 Gross Profit (1) 91,198 89,981 83,576 74,594 339,349 Operating Income (1) 41,283 45,386 27,145 35,451 149,265 Interest, net (3,151 ) (2,672 ) (2,797 ) (2,151 ) (10,771 ) Income Before Income Taxes (1) 39,292 43,198 24,694 30,585 137,769 Net Income (1) 31,945 33,452 21,754 23,954 111,105 Net Income Attributable to Stepan Company (1) 31,952 33,454 21,754 23,957 111,117 Per Diluted Share (1) 1.37 1.44 0.93 1.03 4.76 (1) The 2018 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
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. |
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, 2019, the Company’s cash and cash equivalents totaled $315.4 million including $110.7 million in money market funds, each of which was rated AAAm by Standard and Poor’s, Aaa-mf by Moody’s and AAAmmf by Fitch. Cash in U.S. demand deposit accounts and certificates of deposit totaled $105.7 million and cash of the Company’s non-U.S. subsidiaries held outside the U.S. totaled $99.0 million as of December 31, 2019. |
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 2019, 2018 or 2017. 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. 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, 2019, 2018 and 2017: (In thousands) 2019 2018 2017 Balance at January 1 $ 9,654 $ 10,116 $ 9,755 Provision charged to income 29 764 45 Accounts written off, net of recoveries (358 ) (1,226 ) 316 Balance at December 31 $ 9,325 $ 9,654 $ 10,116 |
Inventories | Inventories Inventories are valued at cost, which is not in excess of market value, and include material, labor and plant overhead costs. Prior to 2019, the LIFO method was used to determine the cost of the Company’s U.S. inventories. Effective January 1, 2019, the Company elected to change its method of accounting for U.S. inventories from the LIFO basis to FIFO basis. Non-U.S. inventories have historically been maintained on the FIFO basis. Prior period financial statements have been adjusted to reflect what results would have been had the Company always used the FIFO method of inventory valuation for U.S. inventories. See Note 2 for additional details. |
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 and a large majority of the assets included within machinery and equipment represent manufacturing equipment. Major renewals and betterments are capitalized in the property accounts, while maintenance and repairs ($58,464,000, $57,010,000, and $51,926,000 in 2019, 2018 and 2017, respectively), which do not renew or extend the life of the respective assets, are charged to operations as incurred. Land is not depreciated. The cost of property retired or sold and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in income. 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. |
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 3), its outstanding debt for disclosure purposes (also Note 3) and its pension plan assets (see Note 14). 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 The Company’s contracts typically have a single performance obligation that is satisfied at the time product is shipped and control passes to the customer. For a small portion of the business, performance obligations are deemed satisfied when product is delivered to a customer location. For arrangements where the Company consigns product to a customer location, revenue is recognized when the customer uses the inventory. The Company accounts for shipping and handling as activities to fulfill a promise to transfer a good. As such, shipping and handling fees billed to customers in a sales transaction are recorded in Net Sales and shipping and handling costs incurred are recorded in Cost of Sales. Volume and cash discounts due customers are estimated and recorded in the same period as the sales to which the discounts relate and are reported as reductions of revenue in the consolidated statements of income. See Note 22 to the consolidated financial statements for more details. |
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, warehouse expenses and rail car rental 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. The majority of 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 $34,139,000, $33,519,000, and $33,169,000 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 typically 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 17 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 other than goodwill. The values for intangible assets with finite lives are amortized over the useful lives of the assets. Currently, the useful lives for the Company’s finite-lived intangible assets are as follows: patents – 10-15 years ; non-compete agreements – five years ; trademarks – 11 years ; customer relationships – 10-25 years ; supply contracts – four years and know-how – 8-14 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 5 for detailed information about goodwill and other intangible assets. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. Deferred tax assets are recognized to the extent that we believe these assets are more likely than not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If we determine that we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. Uncertain tax positions are recorded in accordance with ASC 740 on the basis of a two-step process whereby (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The Company recognizes interest and penalties related to unrecognized tax benefits within the income tax expense line in the accompanying Consolidated Statement of Operations. Accrued interest and penalties are included within the related tax liability line in the Consolidated Balance Sheet. See Note 10 for more information about the Company’s 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 three foreign subsidiaries whose functional currencies are the U.S. dollar. For these subsidiaries, 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 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 Note 12 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 19 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 20 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 18 for detailed information about the Company’s segment reporting. |
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 4 for further information regarding the Company’s use of derivatives. At December 31, 2019, the Company held open forward contracts for the purchase of 0.9 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-2, Leases (Topic 842) Leases (Topic 842) Leases In February 2018, the FASB issued ASU No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income effective for public business entities for fiscal years, and interim periods within those years, beginning after December 15, 2018. The Company adopted this guidance and recorded a $5,325,000 adjustment to the opening balance of retained earnings as of January 1, 2019 with the corresponding offset to AOCI. See Note 20, Accumulated Other Comprehensive Income (Loss) for more details . In June 2016, the FASB issued ASU No. 2016-13 , Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In January 2017, the FASB issued ASU No. 2017-4, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. In August 2018, the FASB issued ASU No. 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20). In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use software (Subtopic 350-40) Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019, 2018 and 2017: (In thousands) 2019 2018 2017 Balance at January 1 $ 9,654 $ 10,116 $ 9,755 Provision charged to income 29 764 45 Accounts written off, net of recoveries (358 ) (1,226 ) 316 Balance at December 31 $ 9,325 $ 9,654 $ 10,116 |
Change In Method of Accountin_2
Change In Method of Accounting for Inventory Valuation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Summary of Prior Year Financial Statement Line Items that have Been Affected by Retrospective Change in Accounting Principle | The following tables present the prior year financial statement line items that have been affected by the retrospective change in accounting principle: Income Statement (In thousands, except per share amounts) Year Ended December 31, 2018 As originally reported under LIFO Effect of change As adjusted under FIFO Cost of Sales $ 1,652,354 $ 2,154 $ 1,654,508 Gross Profit 341,503 (2,154 ) 339,349 Operating Income 151,419 (2,154 ) 149,265 Income Before Provision for Income Taxes 139,923 (2,154 ) 137,769 Provision for Income Taxes 27,173 (509 ) 26,664 Net Income 112,750 (1,645 ) 111,105 Net Income Attributable to Stepan Company 112,762 (1,645 ) 111,117 Net Income Per Diluted Common Share Attributable to Stepan Company $ 4.83 $ (0.07 ) $ 4.76 (In thousands, except per share amounts) Year Ended December 31, 2017 As originally reported under LIFO Effect of change As adjusted under FIFO Cost of Sales $ 1,586,485 $ (7,645 ) $ 1,578,840 Gross Profit 338,522 7,645 346,167 Operating Income 147,195 7,645 154,840 Income Before Provision for Income Taxes 139,237 7,645 146,882 Provision for Income Taxes 47,690 (1,551 ) 46,139 Net Income 91,547 9,196 100,743 Net Income Attributable to Stepan Company 91,578 9,196 100,774 Net Income Per Diluted Common Share Attributable to Stepan Company $ 3.92 $ 0.39 $ 4.31 Balance Sheet (In thousands) December 31, 2018 As originally reported under LIFO Effect of change As adjusted under FIFO Inventories $ 200,165 $ 31,363 $ 231,528 Other Non-Current Assets 10,964 (1,415 ) 9,549 Total Assets 1,484,666 29,948 1,514,614 Deferred Income Taxes $ 18,672 $ 6,289 $ 24,961 Retained Earnings 813,448 23,659 837,107 Total Liabilities and Equity 1,484,666 29,948 1,514,614 Statement of Cash Flows (In thousands) Year Ended December 31, 2018 As originally reported under LIFO Effect of change As adjusted under FIFO Net Income $ 112,750 $ (1,645 ) $ 111,105 Deferred Income Taxes 10,864 (509 ) 10,355 Change in Assets and Liabilities: Inventories (26,832 ) 2,154 (24,678 ) (In thousands) Year Ended December 31, 2017 As originally reported under LIFO Effect of change As adjusted under FIFO Net Income $ 91,547 $ 9,196 $ 100,743 Deferred Income Taxes 550 (1,551 ) (1,001 ) Change in Assets and Liabilities: Inventories 5,655 (7,645 ) (1,990 ) |
Summary of 2019 Financial Statement Line Items If Company Does Not Changed Method of Accounting for U.S. Inventories from LIFO to FIFO | The following tables present what 2019 financial statement line items would have been had the Company not changed its method of accounting for U.S. inventories from the LIFO to FIFO basis: Income Statement (In thousands, except per share amounts) Year Ended December 31, 2019 As reported under FIFO Effect of change As computed under LIFO Cost of Sales $ 1,519,031 $ (4,000 ) $ 1,515,031 Gross Profit 339,714 4,000 343,714 Operating Income 127,260 4,000 131,260 Income Before Provision for Income Taxes 125,899 4,000 129,899 Provision for Income Taxes 22,798 983 23,781 Net Income 103,101 3,017 106,118 Net Income Attributable to Stepan Company 103,129 3,017 106,146 Net Income Per Diluted Common Share Attributable to Stepan Company $ 4.42 $ 0.13 $ 4.55 Balance Sheet (In thousands) December 31, 2019 As reported under FIFO Effect of change As computed under LIFO Inventories $ 203,647 $ (27,363 ) $ 176,284 Other Non-Current Assets 13,210 1,415 14,625 Total Assets 1,579,367 (25,948 ) 1,553,419 Deferred Income Taxes $ 23,391 $ (5,306 ) $ 18,085 Retained Earnings 922,464 (20,642 ) 901,822 Total Liabilities and Equity 1,579,367 (25,948 ) 1,553,419 Statement of Cash Flows (In thousands) Year Ended December 31, 2019 As reported under FIFO Effect of change As computed under LIFO Net Income $ 103,101 $ 3,017 $ 106,118 Deferred Income Taxes (5,016 ) 983 (4,033 ) Change in Assets and Liabilities: Inventories 28,460 (4,000 ) 24,460 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Values and Related Carrying Values of Debt | At December 31, 2019 and 2018, the fair values and related carrying values of debt, including current maturities, were as follows (the fair value and carrying value amounts are presented without regard to unamortized debt issuance costs of $754,000, and $978,000 (In thousands) December 31 2019 2018 Fair value $ 226,712 $ 274,119 Carrying value 222,857 277,058 |
Financial Assets and Liabilities Measured on a Recurring Basis at Fair Value | The following tables present financial assets and liabilities measured on a recurring basis at fair value as of December 31, 2019 and 2018, and the level within the fair value hierarchy in which the fair value measurement falls: (In thousands) December 2019 Level 1 Level 2 Level 3 Mutual fund assets $ 28,227 $ 28,227 $ — $ — Derivative assets: Foreign currency contracts 981 — 981 — Total assets at fair value $ 29,208 $ 28,227 $ 981 $ — Derivative liabilities: Foreign currency contracts $ 429 $ — $ 429 $ — Total liabilities at fair value $ 429 $ — $ 429 $ — (In thousands) December 2018 Level 1 Level 2 Level 3 Mutual fund assets $ 25,082 $ 25,082 $ — $ — Derivative assets: Foreign currency contracts 185 — 185 — Total assets at fair value $ 25,267 $ 25,082 $ 185 $ — Derivative liabilities: Foreign currency contracts $ 10 $ — $ 10 $ — Total liabilities at fair value $ 10 $ — $ 10 $ — |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018, were as follows: (In thousands) Surfactants Segment Polymer Segment Specialty Products Segment Total 2019 2018 2019 2018 2019 2018 2019 2018 Balance as of January 1 Goodwill $ 20,521 $ 22,627 $ 5,417 $ 5,475 $ 483 $ 483 $ 26,421 $ 28,585 Accumulated impairment loss (3,467 ) (3,467 ) — — — — (3,467 ) (3,467 ) Goodwill, net 17,054 19,160 5,417 5,475 483 483 22,954 25,118 Goodwill acquired (1) 3,497 — — — — — 3,497 — Goodwill measurement period adjustment — — — — — — — — Foreign currency translation (354 ) (2,106 ) (11 ) (58 ) — — (365 ) (2,164 ) Balance as of December 31 Goodwill 23,664 20,521 5,406 5,417 483 483 29,553 26,421 Accumulated impairment loss (3,467 ) (3,467 ) — — — — (3,467 ) (3,467 ) Goodwill, net $ 20,197 $ 17,054 $ 5,406 $ 5,417 $ 483 $ 483 $ 26,086 $ 22,954 (1) See Note 21 for information regarding the goodwill acquired in a business combination. |
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, 2019 and 2018. The year-over-year changes in gross carrying values mainly resulted from an oilfield demulsifier product line acquisition and the effects of foreign currency translation. (In thousands) Gross Carrying Value Accumulated Amortization December 31 December 31 2019 2018 2019 2018 Other Intangible Assets: Patents $ 6,947 $ 6,947 $ 5,091 $ 4,492 Non-compete agreements 374 $ 387 242 $ 173 Trademarks 4,087 3,800 2,561 1,929 Customer lists/relationships (2) 14,539 10,750 5,983 4,356 Supply contract 2,040 2,113 1,657 1,189 Know-how (1)(2) 9,543 7,900 6,644 5,514 Total $ 37,530 $ 31,897 $ 22,178 $ 17,653 (1) 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 (2) In 2019, customer lists/relationships and k |
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 12/31/20 $ 3,522 For year ended 12/31/21 2,207 For year ended 12/31/22 1,563 For year ended 12/31/23 1,563 For year ended 12/31/24 1,362 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Composition of Inventories | The composition of inventories was as follows: December 31 (In thousands) 2019 2018 As Adjusted Finished products $ 139,785 $ 163,617 Raw materials 63,862 67,911 Total inventories $ 203,647 $ 231,528 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt comprised the following at December 31, 2019 and 2018: (In thousands) Maturity Dates December 31, 2019 December 31, 2018 Unsecured private placement notes 3.95% (net of unamortized debt issuance cost of $316 and $360 for 2019 and 2018, respectively) 2021-2027 $ 99,684 $ 99,640 3.86% (net of unamortized debt issuance cost of $291 and $347 for 2019 and 2018, respectively) 2020-2025 85,423 99,653 4.86% (net of unamortized debt issuance cost of $147 and $186 for 2019 and 2018, respectively) 2020-2023 36,996 46,243 5.88% (net of unamortized debt issuance cost of $0 and $85 for 2019 and 2018, respectively) 2019 — 22,772 Debt of foreign subsidiaries Unsecured bank debt, foreign currency 2019 — 7,772 Total debt $ 222,103 $ 276,080 Less current maturities 23,571 37,058 Long-term debt $ 198,532 $ 239,022 |
Schedule of Net Interest Expense | Net interest expense for the years ended December 31, 2019, 2018 and 2017, comprised the following: (In thousands) 2019 2018 2017 Interest expense $ 12,744 $ 13,360 $ 14,428 Interest income (5,717 ) (1,829 ) (2,075 ) 7,027 11,531 12,353 Capitalized interest (1,095 ) (760 ) (909 ) Interest expense, net $ 5,932 $ 10,771 $ 11,444 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Lease Cost and Other Information | (In thousands) Year ended December 31, 2019 Lease Cost Operating lease cost $ 10,908 Short-term lease cost 4,420 Variable lease cost 1,045 Total lease cost $ 16,373 Other Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow from operating leases $ 10,954 Right-of-use assets obtained in exchange for new operating lease liabilities 5,694 |
Schedule of Lease Liability Payments | (In thousands) Undiscounted Cash Flows: 2020 $ 10,086 2021 7,589 2022 6,395 2023 5,132 2024 3,014 Subsequent to 2024 16,235 Total Undiscounted Cash Flows $ 48,451 Less: Imputed interest (10,052 ) Present value $ 38,399 Current operating lease liabilities (1) 8,745 Non-current operating lease liabilities 29,654 Total lease liabilities $ 38,399 (1) This item is included in Accrued liabilities line on the Company’s Consolidated Balance Sheet. |
Schedule of Operating Leases Weighted Average, Remaining Lease Term and Discount Rate | Weighted-average remaining lease term-operating leases 9 Years Weighted-average discount rate-operating leases 4.2% |
Schedule of Future Minimum Lease Payments Under ASC 840 | (In thousands) Year 2019 $ 9,740 2020 8,294 2021 6,027 2022 5,242 2023 4,101 Subsequent to 2023 16,593 Total minimum future rental payments $ 49,997 |
Other, Net (Tables)
Other, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Income And Expenses [Abstract] | |
Other Net in Consolidated Statements of Income | Other, net in the Consolidated Statements of Income included the following for the years ended December 31, 2019, 2018 and 2017: (In thousands) 2019 2018 2017 Foreign exchange gains (losses) $ 123 $ 1,902 $ (646 ) Investment income 968 1,554 989 Realized and unrealized gains (losses) on investments 3,955 (2,966 ) 4,178 Net periodic benefit cost (351 ) (1,215 ) (1,035 ) Gain on sale of asset 570 — — Other retirement obligation (694 ) — — Other, net $ 4,571 $ (725 ) $ 3,486 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019, 2018 and 2017, were as follows: (In thousands) 2019 2018 As Adjusted 2017 As Adjusted Taxes on Income Federal Current $ 9,998 $ (296 ) $ 32,299 Deferred (1) (2,879 ) 8,876 (3,690 ) State Current 2,248 2,095 1,764 Deferred (1) (1,783 ) 1,821 587 Foreign Current 15,568 14,510 13,077 Deferred (354 ) (342 ) 2,102 Total (1) $ 22,798 $ 26,664 $ 46,139 Income before Taxes Domestic (1) $ 63,399 $ 86,368 $ 80,307 Foreign 62,500 51,401 66,575 Total (1) $ 125,899 $ 137,769 $ 146,882 (1) The 2018 and 2017 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. |
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) 2019 Amount % 2018 Amount As Adjusted % 2017 Amount As Adjusted % Federal income tax provision at statutory tax rate (1) $ 26,439 21.0 $ 28,931 21.0 $ 51,409 35.0 State income tax provision, less applicable federal tax benefit (1)(2) 367 0.3 3,094 2.2 1,528 1.0 Foreign income taxed at different rates 623 0.5 864 0.6 (8,075 ) (5.5 ) U.S. taxation of foreign earnings (3) 2,349 1.9 2,348 1.7 (1,054 ) (0.7 ) Unrecognized tax benefits 2,954 2.3 (460 ) (0.3 ) (47 ) — Domestic production activities deduction — — — — (1,339 ) (0.9 ) Nontaxable foreign interest income — — (1,179 ) (0.9 ) (2,073 ) (1.4 ) U.S. tax reform, net impact (4) — — (375 ) (0.3 ) 10,323 7.0 Change in accounting methods (5) — — (3,383 ) (2.5 ) (893 ) (0.6 ) Prior years return to provision true-up (6) (1,740 ) (1.4 ) (508 ) (0.4 ) (266 ) (0.2 ) Stock based compensation, excess tax benefits (1,633 ) (1.3 ) (1,648 ) (1.2 ) (2,254 ) (1.5 ) U.S. tax credits (7) (6,412 ) (5.1 ) (1,324 ) (1.0 ) (1,204 ) (0.8 ) Non-deductible expenses and other items, net (149 ) (0.1 ) 304 0.5 84 0.0 Total income tax provision (1) $ 22,798 18.1 $ 26,664 19.4 $ 46,139 31.4 (1) The 2018 and 2017 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. (2) Includes incremental state research credits for the tax years 2015 - 2019 that were identified as part of a research and development tax credit study. (3) Includes cost of global intangible low-taxed income (GILTI) in 2019 and 2018 plus other taxes paid or withheld on cash repatriated from foreign countries in 2019 and 2018. (4) Does not include state tax impacts, which are included in state income tax provision, less applicable federal tax benefit. (5) For 2018, amount represents the federal tax rate change due to certain accounting methods that were adopted on the 2017 federal income tax return. For 2017, amount represents an accounting method change for depreciation. (6) Certain 2018 and 2017 amounts have been reclassified to conform to the 2019 presentation. (7) Includes incremental federal research credits for 2015 - 2019 that were identified as part of a research and development tax credit study. Also includes a federal tax rate change due to the classification of certain 2016 and 2017 depreciable fixed assets as deductible research costs. |
Schedule Showing Tax Effects of Significant Temporary Differences Representing Deferred Tax Assets and Liabilities | At December 31, 2019 and 2018, the tax effects of significant temporary differences representing deferred tax assets and liabilities were as follows: (In thousands) 2019 2018 As Adjusted Deferred Tax Liabilities: Depreciation $ (59,574 ) $ (57,665 ) Unrealized foreign exchange loss (1,479 ) (980 ) Amortization of intangibles (835 ) (1,016 ) Inventories (1) (5,855 ) (8,429 ) Other (307 ) (301 ) $ (68,050 ) $ (68,391 ) Deferred Tax Assets: Pensions $ 5,855 $ 7,971 Deferred revenue 161 208 Other accruals and reserves 12,171 13,123 Legal and environmental accruals 7,758 7,143 Deferred compensation 15,816 14,214 Bad debt and rebate reserves 2,604 2,916 Non-U.S. subsidiaries net operating loss carryforwards 3,966 3,869 Tax credit carryforwards 5,200 2,141 $ 53,531 $ 51,585 Valuation Allowance $ (2,994 ) $ (3,701 ) Net Deferred Tax Liabilities $ (17,513 ) $ (20,507 ) Reconciliation to Consolidated Balance Sheet: Non-current deferred tax assets (in other non-current assets) (1) 5,878 4,454 Non-current deferred tax liabilities (23,391 ) (24,961 ) Net Deferred Tax (Liabilities) Assets $ (17,513 ) $ (20,507 ) (1) The 2018 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. |
Schedule of Reconciliations of Unrecognized Tax Benefits | Below are reconciliations of the January 1 and December 31 balances of unrecognized tax benefits for 2019, 2018 and 2017: (In thousands) 2019 2018 2017 Unrecognized tax benefits, opening balance $ 168 $ 1,927 $ 1,931 Gross increases – tax positions in prior period 2,760 29 — Gross increases – current period tax positions 355 26 20 Foreign currency translation 7 1 69 Settlement — (1,526 ) — Lapse of statute of limitations (17 ) (289 ) (93 ) Unrecognized tax benefits, ending balance $ 3,273 $ 168 $ 1,927 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019, 2018 and 2017: For the Years Ended December 31 2019 2018 2017 Expected dividend yield 1.32% 1.34% 1.39% Expected volatility 26.98% 27.41% 30.01% Expected term 7.3 years 7.3 years 7.2 years Risk-free interest rate 2.53% 2.88% 2.22% |
Summary of Stock Option Activity | A summary of stock option activity for the year ended December 31, 2019 is presented below: Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic ($000) Options Outstanding at January 1, 2019 361,543 $ 58.83 Granted 74,262 92.09 Exercised (59,799 ) 50.78 Forfeited (15,184 ) 79.12 Outstanding at December 31, 2019 360,822 66.15 6.62 $ 13,093 Vested or expected to vest at December 31, 2019 350,805 65.69 6.58 12,891 Exercisable at December 31, 2019 270,871 60.09 6.00 11,470 |
Summary of Stock Award Activity | A summary of stock award activity for the year ended December 31, 2019, is presented below: Shares Weighted-Average Grant Date Fair Value Stock Awards Unvested at January 1, 2019 85,370 $ 73.65 Granted 45,327 89.12 Vested (28,595 ) 77.90 Forfeited (14,768 ) 70.76 Unvested at December 31, 2019 87,334 80.78 |
Summary of SARs Activity | The following is a summary of SARs activity for the year ended December 31, 2019: Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value ($000) SARs Outstanding at January 1, 2019 639,146 $ 60.64 Granted 166,518 92.02 Exercised (104,367 ) 51.13 Forfeited (45,880 ) 79.12 Outstanding at December 31, 2019 655,417 68.83 6.89 $ 22,048 |
Postretirement Benefit Plans (T
Postretirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |
Obligations and Funded Status | Obligations and Funded Status at December 31 (In thousands) United States United Kingdom 2019 2018 2019 2018 Change in benefit obligation Benefit obligation at beginning of year $ 158,594 $ 171,358 $ 20,006 $ 24,048 Interest cost 6,616 6,194 554 565 Actuarial (gain) loss 19,251 (11,494 ) 1,045 (2,129 ) Benefits paid (7,962 ) (7,464 ) (592 ) (1,255 ) Foreign exchange impact — — 837 (1,223 ) Benefit obligation at end of year $ 176,499 $ 158,594 $ 21,850 $ 20,006 (In thousands) United States United Kingdom 2019 2018 2019 2018 Change in plan assets Fair value of plan assets at beginning of year $ 134,198 $ 147,908 $ 20,576 $ 24,168 Actual return (loss) on plan assets 33,875 (11,558 ) 2,963 (1,583 ) Employer contributions 312 5,312 476 494 Benefits paid (7,962 ) (7,464 ) (592 ) (1,254 ) Foreign exchange impact — — 934 (1,249 ) Fair value of plan assets at end of year $ 160,423 $ 134,198 $ 24,357 $ 20,576 Over (Under) funded status at end of year $ (16,076 ) $ (24,396 ) $ 2,507 $ 570 |
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 2019 2018 2019 2018 Non-current asset $ 1,479 $ — $ 2,507 $ 570 Current liability (301 ) (302 ) — — Non-current liability (17,254 ) (24,094 ) — — Net amount recognized $ (16,076 ) $ (24,396 ) $ 2,507 $ 570 |
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 2019 2018 2019 2018 Net actuarial loss $ 37,671 $ 45,334 $ 4,460 $ 5,849 |
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 2019 2018 2019 2018 Projected benefit obligation $ 141,839 $ 158,594 $ — $ — Accumulated benefit obligation 141,839 158,594 — — Fair value of plan assets 124,284 134,198 — — |
Components of Net Periodic Benefit Cost | Net periodic benefit costs for the years ended December 31, 2019, 2018 and 2017, were as follows: (In thousands) United States United Kingdom 2019 2018 2017 2019 2018 2017 Interest cost $ 6,616 $ 6,194 $ 6,651 $ 554 $ 565 $ 592 Expected return on plan assets (9,450 ) (9,284 ) (9,288 ) (787 ) (885 ) (797 ) Amortization of net actuarial loss 2,490 3,814 3,085 244 219 382 Net periodic benefit cost $ (344 ) $ 724 $ 448 $ 11 $ (101 ) $ 177 |
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, 2019, 2018 and 2017, were as follows: (In thousands) United States United Kingdom 2019 2018 2017 2019 2018 2017 Net actuarial (gain) loss $ (5,174 ) $ 9,348 $ 2,864 $ (1,144 ) $ 325 $ (1,318 ) Amortization of net actuarial loss (2,490 ) (3,814 ) (3,085 ) (244 ) (219 ) (382 ) Total recognized in other comprehensive income $ (7,664 ) $ 5,534 $ (221 ) $ (1,388 ) $ 106 $ (1,700 ) Total recognized in net periodic benefit cost and other comprehensive income $ (8,008 ) $ 6,258 $ 227 $ (1,377 ) $ 5 $ (1,523 ) |
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 2020 are as follows: (In thousands) United States United Kingdom Net actuarial loss $ 4,210 $ 81 |
Estimated Future Benefit Payments | Estimated Future Benefit Payments (In thousands) United States United Kingdom 2020 $ 8,228 $ 507 2021 8,701 530 2022 9,198 575 2023 9,603 616 2024 9,908 653 2025-2029 51,412 3,938 |
Defined Contribution Expenses for Company's Qualified Defined Contribution Plans and Statutory Profit Sharing Contributions | Defined contribution expenses for the Company’s qualified defined contribution plans and statutory profit sharing contributions were as follows: (In thousands) 2019 2018 2017 Retirement contributions $ 7,328 $ 7,617 $ 4,998 Profit sharing contributions 4,702 4,182 7,002 Total $ 12,030 $ 11,799 $ 12,000 |
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, 2019 and 2018, by asset category, were as follows: December 31, 2019 (In thousands) Level 1 Level 2 Level 3 Total Cash and Cash Equivalents $ 7,261 $ — $ — $ 7,261 Equity Securities U.S. Equities 50,319 — — 50,319 Non-U.S. Equities 19,697 — — 19,697 Employer Securities 27,234 — — 27,234 Total Equities 97,250 — — 97,250 Fixed Income Securities U.S. Corporate Bonds — 36,242 — 36,242 U.S. Government and Agency Bonds 11,080 — — 11,080 Other Bonds — 8,590 — 8,590 Total Fixed Income 11,080 44,832 — 55,912 Total $ 115,591 $ 44,832 $ — $ 160,423 December 31, 2018 (In thousands) Level 1 Level 2 Level 3 Total Cash and Cash Equivalents $ 4,935 $ — $ — $ 4,935 Equity Securities U.S. Equities 34,751 — — 34,751 Non-U.S. Equities 27,415 — — 27,415 Employer Securities 22,063 — — 22,063 Total Equities 84,229 — — 84,229 Fixed Income Securities U.S. Corporate Bonds — 29,659 — 29,659 U.S. Government and Agency Bonds 6,314 3,139 — 9,453 Other Bonds — 5,922 — 5,922 Total Fixed Income 6,314 38,720 — 45,034 Total $ 95,478 $ 38,720 $ — $ 134,198 |
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, 2019 and 2018, by asset category, were as follows: December 31, 2019 (In thousands) Level 1 Level 2 Level 3 Total Cash $ 252 $ 1,120 $ — $ 1,372 Equity Securities Pooled Pension Funds — 7,533 — 7,533 Fixed Income Pooled Pension Funds — 14,247 — 14,247 Insurance Contracts — — 1,205 1,205 Total $ 252 $ 22,900 $ 1,205 $ 24,357 December 31, 2018 (In thousands) Level 1 Level 2 Level 3 Total Cash $ 205 $ — $ — $ 205 Equity Securities Pooled Pension Funds — 12,750 — 12,750 Fixed Income Pooled Pension Funds — 6,378 — 6,378 Insurance Contracts — — 1,243 1,243 Total $ 205 $ 19,128 $ 1,243 $ 20,576 |
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 2018 and 2019: (In thousands) Insurance Fair value, December 31, 2017 $ 1,698 Sale proceeds (benefit payments) (129 ) Change in unrealized gain (247 ) Foreign exchange impact (79 ) Fair value, December 31, 2018 $ 1,243 Sale proceeds (benefit payments) (121 ) Change in unrealized gain 37 Foreign exchange impact 46 Fair value, December 31, 2019 $ 1,205 |
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 2019 2018 2017 2019 2018 2017 Discount rate 4.30 % 3.67 % 4.17 % 2.80 % 2.40 % 2.60 % Expected long-term return on plan assets 6.75 % 6.75 % 7.00 % 3.82 % 3.71 % 3.77 % |
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 2019 2018 2019 2018 Discount rate 3.30 % 4.30 % 2.10 % 2.80 % |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables And Accruals [Abstract] | |
Composition of Accrued Liabilities | The composition of accrued liabilities was as follows: December 31 (In thousands) 2019 2018 Accrued payroll and benefits $ 57,894 $ 53,782 Accrued customer rebates 25,148 24,833 Other accrued liabilities 38,225 16,955 Total accrued liabilities $ 121,267 $ 95,570 |
Other Non-Current Liabilities (
Other Non-Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Composition of Other Non-Current Liabilities | The composition of other non-current liabilities was as follows: December 31 (In thousands) 2019 2018 Deferred revenue $ 891 $ 1,215 Environmental and legal matters 12,023 20,404 Deferred compensation liability 49,835 43,819 Pension liability 19,407 26,722 Other non-current liabilities 14,024 11,704 Total other non-current liabilities $ 96,180 $ 103,864 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Operating Segment | The following is segment data for the three years ended December 31, 2019, 2018 and 2017: (In thousands) Surfactants Polymers Specialty Products Segment Totals 2019 Net sales $ 1,272,723 $ 512,347 $ 73,675 $ 1,858,745 Operating income 122,780 69,567 16,415 208,762 Assets 907,032 338,179 86,718 1,331,929 Capital expenditures 69,725 29,188 4,441 103,354 Depreciation and amortization expenses 48,422 22,151 5,483 76,056 2018 Net sales $ 1,385,932 $ 527,420 $ 80,505 $ 1,993,857 Operating income (1) 133,518 66,373 11,661 211,552 Assets 850,553 351,690 82,957 1,285,200 Capital expenditures 51,543 26,663 6,192 84,398 Depreciation and amortization expenses 50,514 23,253 5,150 78,917 2017 Net sales $ 1,297,555 $ 546,634 $ 80,818 $ 1,925,007 Operating income (1) 125,712 85,745 9,965 221,422 Assets 881,415 355,065 75,452 1,311,932 Capital expenditures 50,400 21,146 4,234 75,780 Depreciation and amortization expenses 49,102 22,998 5,019 77,119 (1) The 2018 and 2017 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO . |
Reconciliation of Segment Information to Consolidated Financial Statements | Below are reconciliations of segment data to the consolidated financial statements: (In thousands) 2019 2018 2017 Operating income - segment totals (1) $ 208,762 $ 211,552 $ 221,422 Business restructuring (2) (2,744 ) (2,588 ) (3,069 ) Unallocated corporate expenses (3) (78,758 ) (59,699 ) (63,513 ) Total operating income 127,260 149,265 154,840 Interest expense, net (5,932 ) (10,771 ) (11,444 ) Other, net 4,571 (725 ) 3,486 Consolidated income before income taxes (1) $ 125,899 $ 137,769 $ 146,882 Assets - segment totals $ 1,331,929 $ 1,285,200 $ 1,311,932 Unallocated corporate assets (1)(4) 247,438 229,414 190,960 Consolidated assets $ 1,579,367 $ 1,514,614 $ 1,502,892 Capital expenditures - segment totals $ 103,354 $ 84,398 $ 75,780 Unallocated corporate expenditures 2,218 2,249 2,833 Consolidated capital expenditures $ 105,572 $ 86,647 $ 78,613 Depreciation and amortization expenses – segment totals $ 76,056 $ 78,917 $ 77,119 Unallocated corporate depreciation expenses 2,645 2,198 1,903 Consolidated depreciation and amortization expenses $ 78,701 $ 81,115 $ 79,022 (1) The 2018 and 2017 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO (2) See Note 23 regarding business restructuring 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 2019, 2018 and 2017 were primarily attributable to changes in the balance of U.S. cash and cash equivalents, which are not allocated to segments. |
Summary of company-wide geographic data | Below is certain Company-wide geographic data for the years ended December 31, 2019, 2018 and 2017: (In thousands) 2019 2018 2017 Net sales (1) United States $ 1,115,993 $ 1,193,938 $ 1,159,578 France 145,933 171,010 176,052 Poland 156,391 170,474 188,244 United Kingdom 96,842 105,732 99,069 Brazil 102,590 100,328 109,960 All other countries 240,996 252,375 192,104 Total $ 1,858,745 $ 1,993,857 $ 1,925,007 Long-lived assets (2) United States $ 462,199 $ 427,274 $ 420,342 Germany 30,084 29,151 29,116 Singapore 28,741 30,838 33,530 Brazil 46,740 48,427 55,974 China 27,201 29,030 30,849 United Kingdom 21,551 20,225 21,657 All other countries 64,239 61,145 50,631 Total $ 680,755 $ 646,090 $ 642,099 (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. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019, 2018 and 2017: (In thousands, except per share amounts) 2019 2018 2017 Computation of Basic Earnings per Share Net income attributable to Stepan Company (1) $ 103,129 $ 111,117 $ 100,774 Weighted-average number of shares outstanding 23,054 23,022 22,946 Basic earnings per share (1) $ 4.47 $ 4.83 $ 4.39 Computation of Diluted Earnings per Share Net income attributable to Stepan Company (1) $ 103,129 $ 111,117 $ 100,774 Weighted-average number of shares outstanding 23,054 23,022 22,946 Add weighted-average net shares from assumed exercise of options (under treasury share method) (2) 97 101 161 Add weighted-average net shares related to unvested stock awards (under treasury share method) 2 3 8 Add weighted-average net shares from assumed exercise of SARs (under treasury share method) 125 110 142 Add weighted-average contingently issuable net shares related to performance stock awards (under treasury share method) 38 89 120 Weighted-average shares applicable to diluted earnings 23,316 23,325 23,377 Diluted earnings per share (1) $ 4.42 $ 4.76 $ 4.31 (1) The 2018 and 2017 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. (2) Options/SARs to purchase 107,125, 50,770 and 18,630 shares of common stock were not included in the computations of diluted earnings per share for the years ended December 31, 2019, 2018 and 2017, respectively. The options’/SARs’ exercise prices were greater than the average market price for the common stock and the effect of the options/SARs on earnings per share would have been antidilutive. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019, 2018 and 2017: (In thousands) Foreign Currency Translation Adjustments Defined Benefit Pension Plan Adjustments Cash Flow Hedge Adjustments Total Balance at December 31, 2016 $ (96,775 ) $ (30,790 ) $ 100 $ (127,465 ) Other comprehensive income before reclassifications 26,214 (582 ) — 25,632 Amounts reclassified from AOCI — 2,279 (9 ) 2,270 Net current period other comprehensive income 26,214 1,697 (9 ) 27,902 Balance at December 31, 2017 $ (70,561 ) $ (29,093 ) $ 91 $ (99,563 ) Other comprehensive income before reclassifications (37,920 ) (7,080 ) — (45,000 ) Amounts reclassified from AOCI — 3,090 (10 ) 3,080 Net current period other comprehensive income (37,920 ) (3,990 ) (10 ) (41,920 ) Balance at December 31, 2018 $ (108,481 ) $ (33,083 ) $ 81 $ (141,483 ) Other comprehensive income before reclassifications 4,444 4,112 — 8,556 Amounts reclassified from AOCI — 2,091 (9 ) 2,082 Remeasurement adjustment related to the Tax Act (1) — (5,325 ) — (5,325 ) Net current period other comprehensive income 4,444 878 (9 ) 5,313 Balance at December 31, 2019 $ (104,037 ) $ (32,205 ) $ 72 $ (136,170 ) |
Summary of Amounts Reclassified Out of Accumulated Other Comprehensive Income | Amounts reclassified out of AOCI for the three years ended December 31, 2019, 2018 and 2017, is displayed below: Amounts Reclassified from AOCI (1) (In thousands) Affected Line Item in Consolidated 2019 2018 2017 Statements of Income Amortization of defined pension items: Prior service cost $ (12 ) $ (12 ) $ (14 ) Actuarial loss (2,739 ) (4,059 ) (3,509 ) $ (2,751 ) (4,071 ) (3,523 ) Total before tax (2) 660 981 1,244 Tax benefit $ (2,091 ) $ (3,090 ) $ (2,279 ) Net of tax Gains and losses on cash flow hedges: Foreign exchange contracts $ 9 $ 10 $ 9 Cost of sales 9 10 9 Total before tax — — — Tax benefit $ 9 $ 10 $ 9 Net of tax Total reclassifications for the period $ (2,082 ) $ (3,080 ) $ (2,270 ) Net of tax (1) Amounts in parentheses denote expense to statement of income. (2) This component of accumulated other comprehensive income is included in the computation of net periodic benefit cost (see Note 14 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, 2019 | |
2018 Acquisition [Member] | |
Summary of Assets Acquired | The following table summarizes the assets acquired as a result of the acquisition: (In thousands) Assets: Property, plant and equipment $ 14,464 Inventory 5,687 Other Receivable 2,701 Total assets acquired $ 22,852 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Geographic Disaggregation of Net Sales | The tables below provide a geographic disaggregation of net sales for the years ended December 31, 2019, 2018 and 2017. The Company’s business segmentation by geographic region most effectively captures the nature and economic characteristics of the Company’s revenue streams impacted by economic factors. 2019 (In thousands) Surfactants Polymers Specialty Products Total Geographic Market North America $ 766,341 $ 314,549 $ 61,501 $ 1,142,391 Europe 240,711 158,455 12,174 411,340 Latin America 212,405 3,304 — 215,709 Asia 53,266 36,039 — 89,305 Total $ 1,272,723 $ 512,347 $ 73,675 $ 1,858,745 2018 (In thousands) Surfactants Polymers Specialty Products Total Geographic Market North America $ 831,592 $ 323,360 $ 68,201 1,223,153 Europe 276,742 172,632 12,304 461,678 Latin America 212,824 3,463 — 216,287 Asia 64,774 27,965 — 92,739 Total $ 1,385,932 $ 527,420 $ 80,505 $ 1,993,857 2017 (In thousands) Surfactants Polymers Specialty Products Total Geographic Market North America $ 763,044 $ 329,629 $ 66,906 1,159,579 Europe 275,121 188,244 13,912 477,277 Latin America 190,802 4,451 — 195,253 Asia 68,588 24,310 — 92,898 Total $ 1,297,555 $ 546,634 $ 80,818 $ 1,925,007 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data | 2019 Quarter First Second Third Fourth Year Net Sales $ 489,170 $ 473,003 $ 451,582 $ 444,990 $ 1,858,745 Gross Profit 84,609 92,959 77,402 84,744 339,714 Operating Income 29,738 41,065 27,966 28,491 127,260 Interest, net (1,853 ) (1,766 ) (1,402 ) (911 ) (5,932 ) Income Before Income Taxes 31,030 39,534 27,449 27,886 125,899 Net Income 24,978 30,210 25,880 22,033 103,101 Net Income Attributable to Stepan Company 24,984 30,218 25,889 22,038 103,129 Per Diluted Share 1.07 1.30 1.11 0.95 4.42 2018 Quarter First Second Third Fourth Year Net Sales $ 499,335 $ 519,866 $ 507,997 $ 466,659 $ 1,993,857 Gross Profit (1) 91,198 89,981 83,576 74,594 339,349 Operating Income (1) 41,283 45,386 27,145 35,451 149,265 Interest, net (3,151 ) (2,672 ) (2,797 ) (2,151 ) (10,771 ) Income Before Income Taxes (1) 39,292 43,198 24,694 30,585 137,769 Net Income (1) 31,945 33,452 21,754 23,954 111,105 Net Income Attributable to Stepan Company (1) 31,952 33,454 21,754 23,957 111,117 Per Diluted Share (1) 1.37 1.44 0.93 1.03 4.76 (1) The 2018 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) MMBTU in Millions | Jan. 01, 2019USD ($) | Dec. 31, 2019USD ($)MMBTUCustomerSubsidiary | Dec. 31, 2018USD ($)Customer | Dec. 31, 2017USD ($)Customer |
Summary Of Significant Accounting Policy [Line Items] | ||||
Cash and cash equivalents | $ 315,383,000 | $ 300,194,000 | ||
Single customer comprised more than 10 percent of the Company's consolidated net sales | Customer | 0 | 0 | 0 | |
Cost of maintenance and repairs | $ 58,464,000 | $ 57,010,000 | $ 51,926,000 | |
Total research and development expenses | $ 34,139,000 | $ 33,519,000 | $ 33,169,000 | |
Capitalized Environmental expenditures depreciation period | 10 years | |||
Indefinite-life intangible assets | $ 0 | |||
Number of foreign subsidiaries | Subsidiary | 3 | |||
Reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from Tax Act | $ 5,325,000 | |||
Natural Gas [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Volume in derivative contract | MMBTU | 0.9 | |||
Purchased Contract Price | $ 2,442,000 | |||
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 | |||
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] | Know-how [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Finite-lived intangible asset, useful life | 8 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 | 25 years | |||
Maximum [Member] | Know-how [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Finite-lived intangible asset, useful life | 14 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 | |||
Money Market Funds [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Cash and cash equivalents | $ 110,700,000 | |||
Demand Deposits and Certificates of Deposit [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Cash and cash equivalents | 105,700,000 | |||
Non-U.S. Subsidiaries [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Cash and cash equivalents | $ 99,000,000 | |||
Nanjing Stepan Jinling Chemical Limited Liability Company [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Ownership percentage | 80.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Allowance for Doubtful Accounts and Other Accounts Receivable Allowances (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance For Doubtful Accounts Receivable Rollforward | |||
Allowance, balance at the beginning | $ 9,654 | $ 10,116 | $ 9,755 |
Provision charged to income | 29 | 764 | 45 |
Accounts written off, net of recoveries | (358) | (1,226) | 316 |
Allowance, balance at ending | $ 9,325 | $ 9,654 | $ 10,116 |
Change in Method of Accountin_3
Change in Method of Accounting for Inventory Valuation - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Percentage of LIFO inventory | 68.00% | ||
Retained earnings | [1],[2] | $ 922,464 | $ 837,107 |
Effect of Change [Member] | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Retained earnings | $ (20,642) | $ 23,659 | |
[1] | The 2019 amounts for the noted line items include an adjustment related to the Company’s first quarter 2019 adoption of Accounting Standards Update (ASU) No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive income . | ||
[2] | The 2018 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. |
Change in Method of Accountin_4
Change in Method of Accounting for Inventory Valuation - Summary of Financial Statement Line Items Affected by Retrospective Change in Accounting Principle and If no changes in Method of Accounting for U.S. Inventories (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | [2] | Jun. 30, 2018 | [2] | Mar. 31, 2018 | [2] | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||||
Income Statement [Abstract] | ||||||||||||||||||||
Cost of Sales | [1] | $ 1,519,031 | $ 1,654,508 | $ 1,578,840 | ||||||||||||||||
Gross Profit | $ 84,744 | $ 77,402 | $ 92,959 | $ 84,609 | $ 74,594 | [2] | $ 83,576 | $ 89,981 | $ 91,198 | 339,714 | [1] | 339,349 | [1],[2] | 346,167 | [1] | |||||
Operating Income | 28,491 | 27,966 | 41,065 | 29,738 | 35,451 | [2] | 27,145 | 45,386 | 41,283 | 127,260 | [1] | 149,265 | [1],[2] | 154,840 | [1] | |||||
Income Before Provision for Income Taxes | 27,886 | 27,449 | 39,534 | 31,030 | 30,585 | [2] | 24,694 | 43,198 | 39,292 | 125,899 | [1],[3] | 137,769 | [1],[2],[3] | 146,882 | [1],[3] | |||||
Provision for Income Taxes | [1] | 22,798 | 26,664 | 46,139 | ||||||||||||||||
Net Income | 22,033 | 25,880 | 30,210 | 24,978 | 23,954 | [2] | 21,754 | 33,452 | 31,945 | 103,101 | [1] | 111,105 | [1],[2],[4] | 100,743 | [1],[4] | |||||
Net Income Attributable to Stepan Company | $ 22,038 | $ 25,889 | $ 30,218 | $ 24,984 | $ 23,957 | [2] | $ 21,754 | $ 33,454 | $ 31,952 | $ 103,129 | [1] | $ 111,117 | [1],[2] | $ 100,774 | [1] | |||||
Net Income Per Diluted Common Share Attributable to Stepan Company | $ 0.95 | $ 1.11 | $ 1.30 | $ 1.07 | $ 1.03 | [2] | $ 0.93 | $ 1.44 | $ 1.37 | $ 4.42 | [1] | $ 4.76 | [1],[2] | $ 4.31 | [1] | |||||
Balance Sheet [Abstract] | ||||||||||||||||||||
Inventories | [5] | $ 203,647 | $ 231,528 | $ 203,647 | $ 231,528 | |||||||||||||||
Other Non-Current Assets | [5] | 13,210 | 9,549 | 13,210 | 9,549 | |||||||||||||||
Total Assets | 1,579,367 | [5] | 1,514,614 | [5] | 1,579,367 | [5] | 1,514,614 | [5] | $ 1,502,892 | |||||||||||
Deferred Income Taxes | [5] | 23,391 | 24,961 | 23,391 | 24,961 | |||||||||||||||
Retained Earnings | [5],[6] | 922,464 | 837,107 | 922,464 | 837,107 | |||||||||||||||
Total Liabilities and Equity | [5] | 1,579,367 | 1,514,614 | 1,579,367 | 1,514,614 | |||||||||||||||
Statement of Cash Flows [Abstract] | ||||||||||||||||||||
Net Income | 22,033 | $ 25,880 | $ 30,210 | $ 24,978 | 23,954 | [2] | $ 21,754 | $ 33,452 | $ 31,945 | 103,101 | [1] | 111,105 | [1],[2],[4] | 100,743 | [1],[4] | |||||
Deferred Income Taxes | [1] | (5,016) | 10,355 | (1,001) | ||||||||||||||||
Change in Assets and Liabilities: | ||||||||||||||||||||
Inventories | [1] | 28,460 | (24,678) | (1,990) | ||||||||||||||||
As Originally Reported Under LIFO [Member] | ||||||||||||||||||||
Income Statement [Abstract] | ||||||||||||||||||||
Cost of Sales | 1,652,354 | 1,586,485 | ||||||||||||||||||
Gross Profit | 341,503 | 338,522 | ||||||||||||||||||
Operating Income | 151,419 | 147,195 | ||||||||||||||||||
Income Before Provision for Income Taxes | 139,923 | 139,237 | ||||||||||||||||||
Provision for Income Taxes | 27,173 | 47,690 | ||||||||||||||||||
Net Income | 112,750 | 91,547 | ||||||||||||||||||
Net Income Attributable to Stepan Company | $ 112,762 | $ 91,578 | ||||||||||||||||||
Net Income Per Diluted Common Share Attributable to Stepan Company | $ 4.83 | $ 3.92 | ||||||||||||||||||
Balance Sheet [Abstract] | ||||||||||||||||||||
Inventories | 200,165 | $ 200,165 | ||||||||||||||||||
Other Non-Current Assets | 10,964 | 10,964 | ||||||||||||||||||
Total Assets | 1,484,666 | 1,484,666 | ||||||||||||||||||
Deferred Income Taxes | 18,672 | 18,672 | ||||||||||||||||||
Retained Earnings | 813,448 | 813,448 | ||||||||||||||||||
Total Liabilities and Equity | 1,484,666 | 1,484,666 | ||||||||||||||||||
Statement of Cash Flows [Abstract] | ||||||||||||||||||||
Net Income | 112,750 | $ 91,547 | ||||||||||||||||||
Deferred Income Taxes | 10,864 | 550 | ||||||||||||||||||
Change in Assets and Liabilities: | ||||||||||||||||||||
Inventories | (26,832) | 5,655 | ||||||||||||||||||
Effect of Change [Member] | ||||||||||||||||||||
Income Statement [Abstract] | ||||||||||||||||||||
Cost of Sales | (4,000) | 2,154 | (7,645) | |||||||||||||||||
Gross Profit | 4,000 | (2,154) | 7,645 | |||||||||||||||||
Operating Income | 4,000 | (2,154) | 7,645 | |||||||||||||||||
Income Before Provision for Income Taxes | 4,000 | (2,154) | 7,645 | |||||||||||||||||
Provision for Income Taxes | 983 | (509) | (1,551) | |||||||||||||||||
Net Income | 3,017 | (1,645) | 9,196 | |||||||||||||||||
Net Income Attributable to Stepan Company | $ 3,017 | $ (1,645) | $ 9,196 | |||||||||||||||||
Net Income Per Diluted Common Share Attributable to Stepan Company | $ 0.13 | $ (0.07) | $ 0.39 | |||||||||||||||||
Balance Sheet [Abstract] | ||||||||||||||||||||
Inventories | (27,363) | 31,363 | $ (27,363) | $ 31,363 | ||||||||||||||||
Other Non-Current Assets | 1,415 | (1,415) | 1,415 | (1,415) | ||||||||||||||||
Total Assets | (25,948) | 29,948 | (25,948) | 29,948 | ||||||||||||||||
Deferred Income Taxes | (5,306) | 6,289 | (5,306) | 6,289 | ||||||||||||||||
Retained Earnings | (20,642) | 23,659 | (20,642) | 23,659 | ||||||||||||||||
Total Liabilities and Equity | (25,948) | $ 29,948 | (25,948) | 29,948 | ||||||||||||||||
Statement of Cash Flows [Abstract] | ||||||||||||||||||||
Net Income | 3,017 | (1,645) | $ 9,196 | |||||||||||||||||
Deferred Income Taxes | 983 | (509) | (1,551) | |||||||||||||||||
Change in Assets and Liabilities: | ||||||||||||||||||||
Inventories | (4,000) | $ 2,154 | $ (7,645) | |||||||||||||||||
As Computed under LIFO [Member] | ||||||||||||||||||||
Income Statement [Abstract] | ||||||||||||||||||||
Cost of Sales | 1,515,031 | |||||||||||||||||||
Gross Profit | 343,714 | |||||||||||||||||||
Operating Income | 131,260 | |||||||||||||||||||
Income Before Provision for Income Taxes | 129,899 | |||||||||||||||||||
Provision for Income Taxes | 23,781 | |||||||||||||||||||
Net Income | 106,118 | |||||||||||||||||||
Net Income Attributable to Stepan Company | $ 106,146 | |||||||||||||||||||
Net Income Per Diluted Common Share Attributable to Stepan Company | $ 4.55 | |||||||||||||||||||
Balance Sheet [Abstract] | ||||||||||||||||||||
Inventories | 176,284 | $ 176,284 | ||||||||||||||||||
Other Non-Current Assets | 14,625 | 14,625 | ||||||||||||||||||
Total Assets | 1,553,419 | 1,553,419 | ||||||||||||||||||
Deferred Income Taxes | 18,085 | 18,085 | ||||||||||||||||||
Retained Earnings | 901,822 | 901,822 | ||||||||||||||||||
Total Liabilities and Equity | $ 1,553,419 | 1,553,419 | ||||||||||||||||||
Statement of Cash Flows [Abstract] | ||||||||||||||||||||
Net Income | 106,118 | |||||||||||||||||||
Deferred Income Taxes | (4,033) | |||||||||||||||||||
Change in Assets and Liabilities: | ||||||||||||||||||||
Inventories | $ 24,460 | |||||||||||||||||||
[1] | The 2018 and 2017 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. | |||||||||||||||||||
[2] | The 2018 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO | |||||||||||||||||||
[3] | The 2018 and 2017 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO | |||||||||||||||||||
[4] | The retained earnings and net income amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. | |||||||||||||||||||
[5] | The 2018 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. | |||||||||||||||||||
[6] | The 2019 amounts for the noted line items include an adjustment related to the Company’s first quarter 2019 adoption of Accounting Standards Update (ASU) No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive income . |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Disclosures [Abstract] | ||
Unamortized debt issuance cost | $ 754,000 | $ 978,000 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Values and Related Carrying Values of Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Carrying value | $ 222,857 | $ 277,058 |
Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value | $ 226,712 | $ 274,119 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Measured on a Recurring Basis at Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Mutual fund assets | $ 28,227 | $ 25,082 |
Derivative assets: | ||
Foreign currency contracts | 981 | 185 |
Total assets at fair value | 29,208 | 25,267 |
Derivative liabilities: | ||
Foreign currency contracts | 429 | 10 |
Total liabilities at fair value | 429 | 10 |
Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Mutual fund assets | 28,227 | 25,082 |
Derivative assets: | ||
Total assets at fair value | 28,227 | 25,082 |
Level 2 [Member] | ||
Derivative assets: | ||
Foreign currency contracts | 981 | 185 |
Total assets at fair value | 981 | 185 |
Derivative liabilities: | ||
Foreign currency contracts | 429 | 10 |
Total liabilities at fair value | $ 429 | $ 10 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative notional amount | $ 48,540,368 | $ 28,870,081 |
Minimum [Member] | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative foreign currency exchange contracts durations | 1 month | |
Maximum [Member] | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative foreign currency exchange contracts durations | 3 months |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Changes in Carrying Value of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Goodwill [Line Items] | |||
Goodwill, Beginning Balance | $ 26,421 | $ 28,585 | |
Accumulated impairment loss, Beginning Balance | (3,467) | (3,467) | |
Goodwill net, Beginning Balance | 22,954 | 25,118 | |
Goodwill acquired | [1] | 3,497 | |
Foreign currency translation | (365) | (2,164) | |
Goodwill, Ending Balance | 29,553 | 26,421 | |
Accumulated impairment loss, Ending Balance | (3,467) | (3,467) | |
Goodwill net, Ending Balance | 26,086 | 22,954 | |
Surfactants Segment [Member] | |||
Goodwill [Line Items] | |||
Goodwill, Beginning Balance | 20,521 | 22,627 | |
Accumulated impairment loss, Beginning Balance | (3,467) | (3,467) | |
Goodwill net, Beginning Balance | 17,054 | 19,160 | |
Goodwill acquired | [1] | 3,497 | |
Foreign currency translation | (354) | (2,106) | |
Goodwill, Ending Balance | 23,664 | 20,521 | |
Accumulated impairment loss, Ending Balance | (3,467) | (3,467) | |
Goodwill net, Ending Balance | 20,197 | 17,054 | |
Polymer Segment [Member] | |||
Goodwill [Line Items] | |||
Goodwill, Beginning Balance | 5,417 | 5,475 | |
Goodwill net, Beginning Balance | 5,417 | 5,475 | |
Foreign currency translation | (11) | (58) | |
Goodwill, Ending Balance | 5,406 | 5,417 | |
Goodwill net, Ending Balance | 5,406 | 5,417 | |
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 | |
[1] | See Note 21 for information regarding the goodwill acquired in a business combination. |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Impairment of Goodwill | $ 0 | $ 0 | |
Amortization of Intangible Assets, Total | $ 3,399,000 | $ 3,470,000 | $ 3,711,000 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Components of Other Intangible Assets and Changes in Gross Carrying Values (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Other Finite-Lived Intangible Assets, Gross Carrying Value | $ 37,530 | $ 31,897 | |
Other Finite-Lived Intangible Assets, Accumulated Amortization | 22,178 | 17,653 | |
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 | 5,091 | 4,492 | |
Non-compete Agreements [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other Finite-Lived Intangible Assets, Gross Carrying Value | 374 | 387 | |
Other Finite-Lived Intangible Assets, Accumulated Amortization | 242 | 173 | |
Trademarks [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other Finite-Lived Intangible Assets, Gross Carrying Value | 4,087 | 3,800 | |
Other Finite-Lived Intangible Assets, Accumulated Amortization | 2,561 | 1,929 | |
Customer Lists/relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other Finite-Lived Intangible Assets, Gross Carrying Value | [1] | 14,539 | 10,750 |
Other Finite-Lived Intangible Assets, Accumulated Amortization | [1] | 5,983 | 4,356 |
Know-how [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other Finite-Lived Intangible Assets, Gross Carrying Value | [1],[2] | 9,543 | 7,900 |
Other Finite-Lived Intangible Assets, Accumulated Amortization | [1],[2] | 6,644 | 5,514 |
Supply Contract [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other Finite-Lived Intangible Assets, Gross Carrying Value | 2,040 | 2,113 | |
Other Finite-Lived Intangible Assets, Accumulated Amortization | $ 1,657 | $ 1,189 | |
[1] | In 2019, customer lists/relationships and k | ||
[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 Intangible_6
Goodwill and Other Intangible Assets - Estimated Amortization Expense for Identifiable Intangibles Assets (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
For year ended 12/31/20 | $ 3,522 |
For year ended 12/31/21 | 2,207 |
For year ended 12/31/22 | 1,563 |
For year ended 12/31/23 | 1,563 |
For year ended 12/31/24 | $ 1,362 |
Inventories - Composition of In
Inventories - Composition of Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |||
Finished products | $ 139,785 | $ 163,617 | |
Raw materials | 63,862 | 67,911 | |
Total inventories | [1] | $ 203,647 | $ 231,528 |
[1] | The 2018 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. |
Debt - Debt (Detail)
Debt - Debt (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Total debt | $ 222,103 | $ 276,080 |
Less current maturities | 23,571 | 37,058 |
Long-term debt | 198,532 | 239,022 |
Unsecured private placement 3.95% note [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 99,684 | $ 99,640 |
Debt instrument interest rate percentage | 3.95% | 3.95% |
Unsecured private placement 3.95% note [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2021 | 2021 |
Unsecured private placement 3.95% note [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2027 | 2027 |
Unsecured private placement 3.86% note [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 85,423 | $ 99,653 |
Debt instrument interest rate percentage | 3.86% | 3.86% |
Unsecured private placement 3.86% note [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2020 | 2020 |
Unsecured private placement 3.86% note [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2025 | 2025 |
Unsecured private placement 4.86% note [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 36,996 | $ 46,243 |
Debt instrument interest rate percentage | 4.86% | 4.86% |
Unsecured private placement 4.86% note [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2020 | 2020 |
Unsecured private placement 4.86% note [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Dates | 2023 | 2023 |
Unsecured private placement 5.88% note [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 22,772 | |
Debt instrument interest rate percentage | 5.88% | 5.88% |
Maturity Dates | 2019 | 2019 |
Debt of foreign subsidiaries Unsecured bank debt, foreign currency [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 7,772 | |
Maturity Dates | 2019 | 2019 |
Debt - Debt (Parenthetical) (De
Debt - Debt (Parenthetical) (Detail) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Unamortized debt issuance cost | $ 754,000 | $ 978,000 |
Unsecured private placement 3.95% note [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance cost | 316,000 | 360,000 |
Unsecured private placement 3.86% note [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance cost | 291,000 | 347,000 |
Unsecured private placement 4.86% note [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance cost | 147,000 | 186,000 |
Unsecured private placement 5.88% note [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance cost | $ 0 | $ 85,000 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | Jun. 12, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 30, 2018 |
Debt Instrument [Line Items] | ||||
Total debt | $ 222,103,000 | $ 276,080,000 | ||
Line of credit facility, Minimum maturity period | 1 month | |||
Line of credit facility, Maximum maturity period | 6 months | |||
Unamortized debt issuance cost | $ 754,000 | 978,000 | ||
Debt matures in 2020 | 23,571,000 | |||
Debt matures in 2021 | 37,858,000 | |||
Debt matures in 2022 | 37,858,000 | |||
Debt matures in 2023 | 37,857,000 | |||
Debt matures in 2024 | 28,572,000 | |||
Debt matures after 2024 | 57,141,000 | |||
Amount of repayments of long-term debt due in next year | 23,571,000 | |||
Amount of repayments of foreign subsidiaries short-term debt due in next year | $ 0 | |||
Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Commitment fee percentage | 0.15% | |||
Minimum [Member] | LIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
Spread rate | 1.25% | |||
Minimum [Member] | Prime Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Spread rate | 0.25% | |||
Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Commitment fee percentage | 0.325% | |||
Maximum [Member] | LIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
Spread rate | 1.875% | |||
Maximum [Member] | Prime Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Spread rate | 0.875% | |||
Unsecured Private Placement Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | $ 222,857,000 | |||
Maturity Dates | 12 years | |||
Debt instrument maturity dates description | The notes had original maturities of 12 years with mandatory amortization of principal beginning six years after issuance. | |||
Unsecured Private Placement Notes [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument interest rate percentage | 3.86% | |||
Unsecured Private Placement Notes [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument interest rate percentage | 4.86% | |||
Multi Currency Revolving Credit Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Revolving credit agreement | $ 350,000,000 | $ 350,000,000 | ||
Credit agreement secured date | Jan. 30, 2023 | |||
Letters of Credit Outstanding | $ 4,929,000 | |||
Debt Outstanding | 0 | |||
Unused Revolving credit | 345,071,000 | |||
Unrestricted retained earnings | $ 283,956,000 | $ 190,442,000 | ||
Series 2010-A Senior Notes due June 1, 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument interest rate percentage | 5.88% | |||
Credit agreement secured date | Jun. 1, 2022 | |||
Prepaid outstanding principal | $ 17,100,000 | |||
Make-whole amount | 1,173,000 | |||
Unamortized debt issuance cost | $ 74,000 | |||
Debt of foreign subsidiaries Unsecured bank debt and Term Loan, foreign currency [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | $ 0 |
Debt - Schedule of Net Interest
Debt - Schedule of Net Interest Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest Income Expense Net [Abstract] | |||||||||||
Interest expense | $ 12,744 | $ 13,360 | $ 14,428 | ||||||||
Interest income | (5,717) | (1,829) | (2,075) | ||||||||
Interest expense net of interest income | 7,027 | 11,531 | 12,353 | ||||||||
Capitalized interest | (1,095) | (760) | (909) | ||||||||
Interest expense, net | $ 911 | $ 1,402 | $ 1,766 | $ 1,853 | $ 2,151 | $ 2,797 | $ 2,672 | $ 3,151 | $ 5,932 | $ 10,771 | $ 11,444 |
Leases - Additional Information
Leases - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019USD ($)Country | |
Operating Leased Assets [Line Items] | |
Right of use asset | $ 38,386,000 |
Operating lease, liability | $ 38,399,000 |
Number of countries leases reside | Country | 5 |
Percentage of value of leases reside | 97.00% |
Minimum [Member] | |
Operating Leased Assets [Line Items] | |
Lessee, operating lease, term of contract | 1 year |
Maximum [Member] | |
Operating Leased Assets [Line Items] | |
Lessee, operating lease, term of contract | 10 years |
Railcars [Member] | |
Operating Leased Assets [Line Items] | |
Percentage of lease asset categories | 50.00% |
Real Estate [Member] | |
Operating Leased Assets [Line Items] | |
Percentage of lease asset categories | 37.00% |
Real Estate [Member] | Minimum [Member] | |
Operating Leased Assets [Line Items] | |
Lessee, operating lease, term of contract | 1 year |
Real Estate [Member] | Maximum [Member] | |
Operating Leased Assets [Line Items] | |
Lessee, operating lease, term of contract | 50 years |
Equipment and Railcars [Member] | |
Operating Leased Assets [Line Items] | |
Operating lease, liability | $ 537,000 |
Lessee, operating lease, term of contract | 5 years |
ASC 842 [Member] | |
Operating Leased Assets [Line Items] | |
Right of use asset | $ 42,400,000 |
Operating lease, liability | $ 42,400,000 |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Cost and Other Information (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lease Cost | |
Operating lease cost | $ 10,908 |
Short-term lease cost | 4,420 |
Variable lease cost | 1,045 |
Total lease cost | 16,373 |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flow from operating leases | 10,954 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 5,694 |
Leases - Schedule of Lease Liab
Leases - Schedule of Lease Liability Payments (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 10,086 |
2021 | 7,589 |
2022 | 6,395 |
2023 | 5,132 |
2024 | 3,014 |
Subsequent to 2024 | 16,235 |
Total Undiscounted Cash Flows | 48,451 |
Less: Imputed interest | (10,052) |
Present value | 38,399 |
Current operating lease liabilities | 8,745 |
Non-current operating lease liabilities | 29,654 |
Total lease liabilities | $ 38,399 |
Leases - Schedule of Operating
Leases - Schedule of Operating Leases Weighted Average, Remaining Lease Term and Discount Rate (Detail) | Dec. 31, 2019 |
Leases [Abstract] | |
Weighted-average remaining lease term-operating leases | 9 years |
Weighted-average discount rate-operating leases | 4.20% |
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, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 9,740 |
2020 | 8,294 |
2021 | 6,027 |
2022 | 5,242 |
2023 | 4,101 |
Subsequent to 2023 | 16,593 |
Total minimum future rental payments | $ 49,997 |
Other, Net - Other Net in Conso
Other, Net - Other Net in Consolidated Statements of Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Nonoperating Income Expense [Abstract] | |||
Foreign exchange gains (losses) | $ 123 | $ 1,902 | $ (646) |
Investment income | 968 | 1,554 | 989 |
Realized and unrealized gains (losses) on investments | 3,955 | (2,966) | 4,178 |
Net periodic benefit cost | (351) | (1,215) | (1,035) |
Gain on sale of asset | 570 | ||
Other retirement obligation | (694) | ||
Other, net | $ 4,571 | $ (725) | $ 3,486 |
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, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | [2] | Sep. 30, 2018 | [2] | Jun. 30, 2018 | [2] | Mar. 31, 2018 | [2] | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Federal | |||||||||||||||||||
Current | $ 9,998 | $ (296) | $ 32,299 | ||||||||||||||||
Deferred | [1] | (2,879) | 8,876 | (3,690) | |||||||||||||||
State | |||||||||||||||||||
Current | 2,248 | 2,095 | 1,764 | ||||||||||||||||
Deferred | [1] | (1,783) | 1,821 | 587 | |||||||||||||||
Foreign | |||||||||||||||||||
Current | 15,568 | 14,510 | 13,077 | ||||||||||||||||
Deferred | (354) | (342) | 2,102 | ||||||||||||||||
Total | [1] | 22,798 | 26,664 | 46,139 | |||||||||||||||
Income before Taxes | |||||||||||||||||||
Domestic | [1] | 63,399 | 86,368 | 80,307 | |||||||||||||||
Foreign | 62,500 | 51,401 | 66,575 | ||||||||||||||||
Income Before Provision for Income Taxes | $ 27,886 | $ 27,449 | $ 39,534 | $ 31,030 | $ 30,585 | $ 24,694 | $ 43,198 | $ 39,292 | $ 125,899 | [1],[3] | $ 137,769 | [1],[2],[3] | $ 146,882 | [1],[3] | |||||
[1] | The 2018 and 2017 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. | ||||||||||||||||||
[2] | The 2018 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO | ||||||||||||||||||
[3] | The 2018 and 2017 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Income Tax Disclosure [Abstract] | ||||
Federal income tax provision at statutory tax rate | [1] | $ 26,439 | $ 28,931 | $ 51,409 |
State income tax provision, less applicable federal tax benefit | [1],[2] | 367 | 3,094 | 1,528 |
Foreign income taxed at different rates | 623 | 864 | (8,075) | |
U.S. taxation of foreign earnings | [3] | 2,349 | 2,348 | (1,054) |
Unrecognized tax benefits | 2,954 | (460) | (47) | |
Domestic production activities deduction | (1,339) | |||
Nontaxable foreign interest income | (1,179) | (2,073) | ||
U.S. tax reform, net impact | [4] | (375) | 10,323 | |
Change in accounting methods | [5] | (3,383) | (893) | |
Prior years return to provision true-up | [6] | (1,740) | (508) | (266) |
Stock based compensation, excess tax benefits | (1,633) | (1,648) | (2,254) | |
U.S. tax credits | [7] | (6,412) | (1,324) | (1,204) |
Non-deductible expenses and other items, net | (149) | 304 | 84 | |
Total | [1] | $ 22,798 | $ 26,664 | $ 46,139 |
Percentage of Federal income tax provision at statutory tax rate | [1] | 21.00% | 21.00% | 35.00% |
Percentage of state income tax provision, less applicable federal tax benefit | [1],[2] | 0.30% | 2.20% | 1.00% |
Percentage of Foreign income taxed at different rates | 0.50% | 0.60% | (5.50%) | |
Percentage of U.S. taxation of foreign earnings | [3] | 1.90% | 1.70% | (0.70%) |
Percentage of Unrecognized tax benefits | 2.30% | (0.30%) | ||
Percentage of Domestic production activities deduction | (0.90%) | |||
Percentage of Nontaxable foreign interest income | (0.90%) | (1.40%) | ||
Percentage of U.S. tax reform, net impact | [4] | (0.30%) | 7.00% | |
Percentage of Change in accounting methods | [5] | (2.50%) | (0.60%) | |
Percentage of Prior years return to provision true-up | [6] | (1.40%) | (0.40%) | (0.20%) |
Percentage of stock based compensation, excess tax benefits | (1.30%) | (1.20%) | (1.50%) | |
Percentage of U.S. tax credits | [7] | (5.10%) | (1.00%) | (0.80%) |
Non-deductible expenses and other items, net | (0.10%) | 0.50% | 0.00% | |
Percentage of Total income tax provision | [1] | 18.10% | 19.40% | 31.40% |
[1] | The 2018 and 2017 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. | |||
[2] | Includes incremental state research credits for the tax years 2015 - 2019 that were identified as part of a research and development tax credit study. | |||
[3] | Includes cost of global intangible low-taxed income (GILTI) in 2019 and 2018 plus other taxes paid or withheld on cash repatriated from foreign countries in 2019 and 2018. | |||
[4] | Does not include state tax impacts, which are included in state income tax provision, less applicable federal tax benefit. | |||
[5] | For 2018, amount represents the federal tax rate change due to certain accounting methods that were adopted on the 2017 federal income tax return. For 2017, amount represents an accounting method change for depreciation. | |||
[6] | Certain 2018 and 2017 amounts have been reclassified to conform to the 2019 presentation. | |||
[7] | Includes incremental federal research credits for 2015 - 2019 that were identified as part of a research and development tax credit study. Also includes a federal tax rate change due to the classification of certain 2016 and 2017 depreciable fixed assets as deductible research costs. |
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, 2019 | Dec. 31, 2018 | |
Deferred Tax Liabilities: | |||
Depreciation | $ (59,574) | $ (57,665) | |
Unrealized foreign exchange loss | (1,479) | (980) | |
Amortization of intangibles | (835) | (1,016) | |
Inventories | [1] | (5,855) | (8,429) |
Other | (307) | (301) | |
Deferred Tax Liabilities, Gross | (68,050) | (68,391) | |
Deferred Tax Assets: | |||
Pensions | 5,855 | 7,971 | |
Deferred revenue | 161 | 208 | |
Other accruals and reserves | 12,171 | 13,123 | |
Legal and environmental accruals | 7,758 | 7,143 | |
Deferred compensation | 15,816 | 14,214 | |
Bad debt and rebate reserves | 2,604 | 2,916 | |
Non-U.S. subsidiaries net operating loss carryforwards | 3,966 | 3,869 | |
Tax credit carryforwards | 5,200 | 2,141 | |
Deferred Tax Assets, Gross | 53,531 | 51,585 | |
Valuation Allowance | (2,994) | (3,701) | |
Net Deferred Tax Liabilities | (17,513) | (20,507) | |
Reconciliation to Consolidated Balance Sheet: | |||
Non-current deferred tax assets (in other non-current assets) | [1] | 5,878 | 4,454 |
Non-current deferred tax liabilities | [1] | $ (23,391) | $ (24,961) |
[1] | The 2018 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Deduction percentage of dividends received from distribution to earnings previously taxed | 100.00% | |||
Foreign earnings repatriated | $ 57,000,000 | |||
Additional income tax expense | $ 500,000 | |||
Increase in effective tax rate | 0.004 | |||
Tax loss carryforwards | $ 12,031,000 | $ 14,901,000 | ||
Tax credit carryforwards | 5,200,000 | 2,141,000 | ||
Capital loss carryforwards | 621,000 | 0 | ||
Valuation Allowance | 2,994,000 | 3,701,000 | ||
Unrecognized tax benefits | 3,273,000 | 168,000 | $ 1,927,000 | $ 1,931,000 |
Unrecognized tax benefits that, if recognized, would impact effective tax rates | 3,105,000 | 162,000 | 1,917,000 | |
Net interest and penalty expense (income) | 19,000 | (26,000) | $ 3,000 | |
Income tax liability for interest and penalties | $ 49,000 | 30,000 | ||
Unrecognized tax benefits from adjustments related to examination | 1,526,000 | |||
Income tax refund receivable | $ 1,326,000 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliations of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits, opening balance | $ 168 | $ 1,927 | $ 1,931 |
Gross increases – tax positions in prior period | 2,760 | 29 | |
Gross increases – current period tax positions | 355 | 26 | 20 |
Foreign currency translation | 7 | 1 | 69 |
Settlement | (1,526) | ||
Lapse of statute of limitations | (17) | (289) | (93) |
Unrecognized tax benefits, ending balance | $ 3,273 | $ 168 | $ 1,927 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Class Of Stock [Line Items] | |||
Treasury stock, shares | 3,979,735 | 3,803,043 | |
Shares purchased during period | 144,457 | 205,983 | 76,790 |
Treasury stock distributed under deferred compensation plan | 7,884 | ||
Stock purchased to settle employees statutory withholding taxes relates to performance stock awards and deferred compensation distribution | 40,119 | ||
Open Market Repurchases [Member] | |||
Class Of Stock [Line Items] | |||
Shares purchased during period | 144,457 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
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 | 1,032,406 | ||
Compensation expenses | $ 8,872,000 | $ 6,837,000 | $ 7,151,000 |
Decrease increase in market value of company common stock, per share | $ 102.44 | $ 74 | |
Increase decrease in market value of common stock | $ 28.44 | ||
Income tax benefit recognized in the income statement for share-based compensation arrangements | $ 1,501,000 | $ 1,849,000 | 2,980,124 |
Proceeds from stock option exercises | $ 3,037,000 | $ 4,163,000 | $ 3,370,000 |
Stock Option [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted-average grant-date fair values of options awarded | $ 26.49 | $ 22.13 | $ 24.49 |
Intrinsic values of options exercised | $ 2,518,000 | $ 3,879,000 | $ 5,232,000 |
Unrecognized compensation cost | $ 1,850,000 | ||
Weighted average period for amortization of unrecognized compensation cost | 1 year 8 months 12 days | ||
Actual tax benefit recognized for the tax deductions from stock based compensation | $ 348,000 | $ 548,000 | $ 1,455,000 |
Stock Option Granted Prior to 2017 [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | 2 years | ||
Stock Options Granted in 2017 [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Percentage of awards vesting in each year | 33.33% | ||
Stock Options Granted in 2018 [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Percentage of awards vesting in each year | 33.33% | ||
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 | $ 3,618,000 | ||
Weighted average period for amortization of unrecognized compensation cost | 1 year 8 months 12 days | ||
Performance stock awards vested | 28,595 | ||
Weighted-average grant-date fair values of awards granted | $ 89.12 | $ 72.06 | $ 75.94 |
SARs [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Period of expiration | 10 years | ||
Unrecognized compensation cost | $ 4,058,000 | ||
Weighted average period for amortization of unrecognized compensation cost | 1 year 8 months 12 days | ||
Weighted-average grant-date fair values of awards granted | $ 26.43 | $ 22.19 | $ 24.90 |
SARs liability cash-settled | $ 4,509,000 | $ 3,647,000 | |
SARs Granted Prior to 2017 [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | 2 years | ||
SARs Granted in 2017 [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Percentage of awards vesting in each year | 33.33% | ||
SARs Granted in 2018 [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Percentage of awards vesting in each year | 33.33% | ||
Maximum [Member] | Stock Option [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Period of expiration | 10 years | ||
Minimum [Member] | Stock Option [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Period of expiration | 8 years |
Stock-based Compensation - Fair
Stock-based Compensation - Fair Value Assumptions for Stock Options (Detail) - Stock Option [Member] | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected dividend yield | 1.32% | 1.34% | 1.39% |
Expected volatility | 26.98% | 27.41% | 30.01% |
Expected term | 7 years 3 months 18 days | 7 years 3 months 18 days | 7 years 2 months 12 days |
Risk-free interest rate | 2.53% | 2.88% | 2.22% |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Shares, Beginning Balance | 361,543 | ||
Granted, Shares | 74,262 | ||
Exercised, Shares | (59,799) | (97,471) | (104,277) |
Forfeited, Shares | (15,184) | ||
Shares, Ending Balance | 360,822 | 361,543 | |
Vested or expected to vest, Shares | 350,805 | ||
Exercisable, Shares | 270,871 | ||
Weighted Average Exercise Price, Beginning Balance | $ 58.83 | ||
Granted, Weighted Average Exercise Price | 92.09 | ||
Exercised, Weighted Average Exercise Price | 50.78 | ||
Forfeited, Weighted Average Exercise Price | 79.12 | ||
Weighted Average Exercise Price, Ending Balance | 66.15 | $ 58.83 | |
Vested or expected to vest, Weighted Average Exercise Price | 65.69 | ||
Exercisable, Weighted Average Exercise Price | $ 60.09 | ||
Weighted Average Remaining Contractual Term, Ending Balance | 6 years 7 months 13 days | ||
Vested or expected to vest, Weighted Average Remaining Contractual Term | 6 years 6 months 29 days | ||
Exercisable, Weighted Average Remaining Contractual Term | 6 years | ||
Aggregate Intrinsic Value, Ending Balance | $ 13,093 | ||
Vested or expected to vest, Aggregate Intrinsic Value | 12,891 | ||
Exercisable, Aggregate Intrinsic Value | $ 11,470 |
Stock-based Compensation - Su_2
Stock-based Compensation - Summary of Stock Award Activity (Detail) - Stock Awards [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares, Beginning Balance | 85,370 | ||
Granted, Shares | 45,327 | ||
Vested, Shares | (28,595) | ||
Forfeited, Shares | (14,768) | ||
Shares, Ending Balance | 87,334 | 85,370 | |
Unvested Weighted Average Grant Date Fair Value, Beginning Balance | $ 73.65 | ||
Granted, Weighted Average Grant Date Fair Value | 89.12 | $ 72.06 | $ 75.94 |
Vested, Weighted Average Grant Date Fair Value | 77.90 | ||
Forfeited, Weighted Average Grant Date Fair Value | 70.76 | ||
Unvested Weighted Average Grant Date Fair Value, Ending Balance | $ 80.78 | $ 73.65 |
Stock-based Compensation - Su_3
Stock-based Compensation - Summary of SARs Activity (Detail) - SARs [Member] $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Shares, Beginning Balance | shares | 639,146 |
Granted, Shares | shares | 166,518 |
Exercised, Shares | shares | (104,367) |
Forfeited, Shares | shares | (45,880) |
Shares, Ending Balance | shares | 655,417 |
Weighted Average Exercise Price, Beginning Balance | $ / shares | $ 60.64 |
Granted, Weighted Average Exercise Price | $ / shares | 92.02 |
Exercised, Weighted Average Exercise Price | $ / shares | 51.13 |
Forfeited, Weighted Average Exercise Price | $ / shares | 79.12 |
Weighted Average Exercise Price, Ending balance | $ / shares | $ 68.83 |
Weighted Average Remaining Contractual Term, Ending balance | 6 years 10 months 20 days |
Aggregate Intrinsic Value, Ending balance | $ | $ 22,048 |
Deferred Compensation - Additio
Deferred Compensation - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Deferred compensation | $ 15,140,000 | $ (2,329,000) | $ 4,857,000 |
Deferred compensation liability | $ 59,031,000 | $ 50,451,000 | |
Increase (decrease) in market price of common stock due to deferred compensation | $ 28.44 | $ (4.97) |
Postretirement Benefit Plans -
Postretirement Benefit Plans - Obligations and Funded Status (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
United States [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Benefit obligation at beginning of year | $ 158,594 | $ 171,358 | |
Interest cost | 6,616 | 6,194 | $ 6,651 |
Actuarial (gain) loss | 19,251 | (11,494) | |
Benefits paid | (7,962) | (7,464) | |
Benefit obligation at end of year | 176,499 | 158,594 | 171,358 |
Fair value of plan assets at beginning of year | 134,198 | 147,908 | |
Actual return (loss) on plan assets | 33,875 | (11,558) | |
Employer contributions | 312 | 5,312 | |
Benefits paid | (7,962) | (7,464) | |
Fair value of plan assets at end of year | 160,423 | 134,198 | 147,908 |
Over (Under) funded status at end of year | (16,076) | (24,396) | |
United Kingdom [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Benefit obligation at beginning of year | 20,006 | 24,048 | |
Interest cost | 554 | 565 | 592 |
Actuarial (gain) loss | 1,045 | (2,129) | |
Benefits paid | (592) | (1,255) | |
Foreign exchange impact | 837 | (1,223) | |
Benefit obligation at end of year | 21,850 | 20,006 | 24,048 |
Fair value of plan assets at beginning of year | 20,576 | 24,168 | |
Actual return (loss) on plan assets | 2,963 | (1,583) | |
Employer contributions | 476 | 494 | |
Benefits paid | (592) | (1,254) | |
Foreign exchange impact | 934 | (1,249) | |
Fair value of plan assets at end of year | 24,357 | 20,576 | $ 24,168 |
Over (Under) funded status at end of year | $ 2,507 | $ 570 |
Postretirement Benefit Plans _2
Postretirement Benefit Plans - Schedule of Amounts Recognized in Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
United States [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Non-current asset | $ 1,479 | |
Current liability | (301) | $ (302) |
Non-current liability | (17,254) | (24,094) |
Net amount recognized | (16,076) | (24,396) |
United Kingdom [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Non-current asset | 2,507 | 570 |
Net amount recognized | $ 2,507 | $ 570 |
Postretirement Benefit Plans _3
Postretirement Benefit Plans - Amounts Recognized in Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
United States [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Net actuarial loss | $ 37,671 | $ 45,334 |
United Kingdom [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Net actuarial loss | $ 4,460 | $ 5,849 |
Postretirement Benefit Plans _4
Postretirement Benefit Plans - Information for Pension Plans with Projected Benefit Obligations in Excess of Plan Assets (Detail) - United States [Member] - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Projected benefit obligation | $ 141,839 | $ 158,594 |
Accumulated benefit obligation | 141,839 | 158,594 |
Fair value of plan assets | $ 124,284 | $ 134,198 |
Postretirement Benefit Plans _5
Postretirement Benefit Plans - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic benefit cost | $ 351 | $ 1,215 | $ 1,035 |
United States [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | 6,616 | 6,194 | 6,651 |
Expected return on plan assets | (9,450) | (9,284) | (9,288) |
Amortization of net actuarial loss | 2,490 | 3,814 | 3,085 |
Net periodic benefit cost | (344) | 724 | 448 |
United Kingdom [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | 554 | 565 | 592 |
Expected return on plan assets | (787) | (885) | (797) |
Amortization of net actuarial loss | 244 | 219 | 382 |
Net periodic benefit cost | $ 11 | $ (101) | $ 177 |
Postretirement Benefit Plans _6
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
United States [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Net actuarial (gain) loss | $ (5,174) | $ 9,348 | $ 2,864 |
Amortization of net actuarial loss | (2,490) | (3,814) | (3,085) |
Total recognized in other comprehensive income | (7,664) | 5,534 | (221) |
Total recognized in net periodic benefit cost and other comprehensive income | (8,008) | 6,258 | 227 |
United Kingdom [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Net actuarial (gain) loss | (1,144) | 325 | (1,318) |
Amortization of net actuarial loss | (244) | (219) | (382) |
Total recognized in other comprehensive income | (1,388) | 106 | (1,700) |
Total recognized in net periodic benefit cost and other comprehensive income | $ (1,377) | $ 5 | $ (1,523) |
Postretirement Benefit Plans _7
Postretirement Benefit Plans - Estimated Amounts Reclassified from Accumulated Other Comprehensive Income into Net Periodic Benefit Cost (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
United States [Member] | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |
Net actuarial loss | $ 4,210 |
United Kingdom [Member] | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |
Net actuarial loss | $ 81 |
Postretirement Benefit Plans _8
Postretirement Benefit Plans - Estimated Future Benefit Payments (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
United States [Member] | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |
2020 | $ 8,228 |
2021 | 8,701 |
2022 | 9,198 |
2023 | 9,603 |
2024 | 9,908 |
2025-2029 | 51,412 |
United Kingdom [Member] | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |
2020 | 507 |
2021 | 530 |
2022 | 575 |
2023 | 616 |
2024 | 653 |
2025-2029 | $ 3,938 |
Postretirement Benefit Plans _9
Postretirement Benefit Plans - Weighted-Average Assumptions Used To Determine Benefit Obligations (Detail) | Dec. 31, 2019 | Dec. 31, 2018 |
United States [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Discount rate | 3.30% | 4.30% |
United Kingdom [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Discount rate | 2.10% | 2.80% |
Postretirement Benefit Plans_10
Postretirement Benefit Plans - The Weighted Average Assumptions Used to Determine Net Periodic Benefit Costs (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
United States [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Discount rate | 4.30% | 3.67% | 4.17% |
Expected long-term return on plan assets | 6.75% | 6.75% | 7.00% |
United Kingdom [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Discount rate | 2.80% | 2.40% | 2.60% |
Expected long-term return on plan assets | 3.82% | 3.71% | 3.77% |
Postretirement Benefit Plans_11
Postretirement Benefit Plans - Defined Benefit Plans - Additional Information (Detail) - USD ($) | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 21, 2019 | Aug. 08, 2018 | Mar. 09, 2018 | Feb. 21, 2018 | |
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] | |||||||
Common shares sold to the Company's ESOP trust | 32,299 | 16,833 | 23,471 | 43,930 | |||
Expected long-term rate of return on assets | 6.75% | 6.75% | 7.00% | ||||
Expected payment related to qualified plan | $ 0 | ||||||
Expected payment related to non-qualified plan | $ 301,000 | ||||||
U.K Plans [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Expected long-term rate of return on assets | 3.82% | 3.71% | 3.77% | ||||
Percentage of premium estimated return for equities and properties to risk free rate | 4.30% | ||||||
Percentage of long term return in cash | 0.80% | ||||||
Expected payment related to qualified plan | $ 495,000 | ||||||
Equities [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Percentage of target allocation for investment category | 45.00% | ||||||
Expected long-term rate of return on assets | 6.45% | ||||||
Equities [Member] | U.K Plans [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Percentage of target allocation for investment category | 31.00% | ||||||
Debt Securities [Member] | United States [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Percentage of target allocation for investment category | 38.00% | ||||||
Debt Securities [Member] | U.K Plans [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Percentage of target allocation for investment category | 58.00% | ||||||
Employer Securities [Member] | United States [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Percentage of target allocation for investment category | 15.00% | ||||||
Cash [Member] | United States [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Percentage of target allocation for investment category | 2.00% | ||||||
Cash [Member] | U.K Plans [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Percentage of target allocation for investment category | 6.00% | ||||||
Insurance Contracts [Member] | U.K Plans [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Percentage of target allocation for investment category | 5.00% | ||||||
U.S. and international equities [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Expected long-term rate of return on assets | 4.53% |
Postretirement Benefit Plans_12
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | |||
Total | $ 160,423 | $ 134,198 | $ 147,908 |
Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 115,591 | 95,478 | |
Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 44,832 | 38,720 | |
Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 7,261 | 4,935 | |
Cash and Cash Equivalents [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 7,261 | 4,935 | |
Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 97,250 | 84,229 | |
Equity Securities [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 97,250 | 84,229 | |
U.S. Equities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 50,319 | 34,751 | |
U.S. Equities [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 50,319 | 34,751 | |
Non-U.S. Equities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 19,697 | 27,415 | |
Non-U.S. Equities [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 19,697 | 27,415 | |
Employer Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 27,234 | 22,063 | |
Employer Securities [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 27,234 | 22,063 | |
Fixed Income Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 55,912 | 45,034 | |
Fixed Income Securities [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 11,080 | 6,314 | |
Fixed Income Securities [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 44,832 | 38,720 | |
U.S. Corporate Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 36,242 | 29,659 | |
U.S. Corporate Bonds [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 36,242 | 29,659 | |
U.S. Government and Agency Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 11,080 | 9,453 | |
U.S. Government and Agency Bonds [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 11,080 | 6,314 | |
U.S. Government and Agency Bonds [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 3,139 | ||
Other Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 8,590 | 5,922 | |
Other Bonds [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | $ 8,590 | $ 5,922 |
Postretirement Benefit Plans_13
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | |||
Total | $ 24,357 | $ 20,576 | $ 24,168 |
Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 252 | 205 | |
Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 22,900 | 19,128 | |
Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 1,205 | 1,243 | |
Cash [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 1,372 | 205 | |
Cash [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 252 | 205 | |
Cash [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 1,120 | ||
Pooled Pension Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 7,533 | 12,750 | |
Pooled Pension Funds [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 7,533 | 12,750 | |
Pooled Fixed Pension Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 14,247 | 6,378 | |
Pooled Fixed Pension Funds [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 14,247 | 6,378 | |
Insurance Contracts [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 1,205 | 1,243 | |
Insurance Contracts [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | $ 1,205 | $ 1,243 |
Postretirement Benefit Plans_14
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, 2019 | Dec. 31, 2018 | |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | $ 1,243 | $ 1,698 |
Sale proceeds (benefit payments) | (121) | (129) |
Change in unrealized gain | 37 | (247) |
Foreign exchange impact | 46 | (79) |
Ending balance | $ 1,205 | $ 1,243 |
Postretirement Benefit Plans_15
Postretirement Benefit Plans - Defined Contribution Expenses for Company's Qualified Defined Contribution Plans and Statutory Profit Sharing Contributions (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Total defined contribution expense | $ 12,030 | $ 11,799 | $ 12,000 |
Retirement Contributions [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Total defined contribution expense | 7,328 | 7,617 | 4,998 |
Profit Sharing Contributions [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Total defined contribution expense | $ 4,702 | $ 4,182 | $ 7,002 |
Postretirement Benefit Plans_16
Postretirement Benefit Plans - Defined Contribution Plans - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Supplemental plan liability balances | $ 1,819 | $ 1,519 | |
Defined contribution plan expense | $ 12,030 | 11,799 | $ 12,000 |
Percentage of union and non-union employees eligible for either statutory or Company's sponsored profit sharing contributions | 77.00% | ||
Statutory Plans [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plan expense | $ 935 | 374 | $ 398 |
Defined Contribution Plans [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Balance of trust assets | $ 1,744 | $ 1,444 |
Accrued Liabilities - Compositi
Accrued Liabilities - Composition of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Payables And Accruals [Abstract] | ||
Accrued payroll and benefits | $ 57,894 | $ 53,782 |
Accrued customer rebates | 25,148 | 24,833 |
Other accrued liabilities | 38,225 | 16,955 |
Total accrued liabilities | $ 121,267 | $ 95,570 |
Other Non-Current Liabilities -
Other Non-Current Liabilities - Statement of Composition of Other Non Current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Other Liabilities Disclosure [Abstract] | ||
Deferred revenue | $ 891 | $ 1,215 |
Environmental and legal matters | 12,023 | 20,404 |
Deferred compensation liability | 49,835 | 43,819 |
Pension liability | 19,407 | 26,722 |
Other non-current liabilities | 14,024 | 11,704 |
Total other non-current liabilities | $ 96,180 | $ 103,864 |
Contingencies - Additional Info
Contingencies - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Site Contingency [Line Items] | ||
Environmental losses accrual | $ 25,900,000 | $ 23,400,000 |
Cash expenditures related to legal and environmental matters | $ 3,800,000 | $ 1,600,000 |
Contribution for future response costs | 5.00% | |
Wilmington Site [Member] | ||
Site Contingency [Line Items] | ||
Payment of environmental response costs | $ 2,800,000 | |
Minimum [Member] | ||
Site Contingency [Line Items] | ||
Environmental and legal losses | 25,900,000 | |
Maximum [Member] | ||
Site Contingency [Line Items] | ||
Environmental and legal losses | $ 43,700,000 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Reporting - Operating S
Segment Reporting - Operating Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net sales | $ 444,990 | $ 451,582 | $ 473,003 | $ 489,170 | $ 466,659 | $ 507,997 | $ 519,866 | $ 499,335 | $ 1,858,745 | [1] | $ 1,993,857 | [1] | $ 1,925,007 | [1] | ||||||
Operating income | 28,491 | $ 27,966 | $ 41,065 | $ 29,738 | 35,451 | [2] | $ 27,145 | [2] | $ 45,386 | [2] | $ 41,283 | [2] | 127,260 | [3] | 149,265 | [2],[3] | 154,840 | [3] | ||
Assets | 1,579,367 | [4] | 1,514,614 | [4] | 1,579,367 | [4] | 1,514,614 | [4] | 1,502,892 | |||||||||||
Capital expenditures | 105,572 | 86,647 | 78,613 | |||||||||||||||||
Depreciation and amortization expenses | 78,701 | 81,115 | 79,022 | |||||||||||||||||
Operating Segments [Member] | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net sales | 1,858,745 | 1,993,857 | 1,925,007 | |||||||||||||||||
Operating income | [5] | 208,762 | 211,552 | 221,422 | ||||||||||||||||
Assets | 1,331,929 | 1,285,200 | 1,331,929 | 1,285,200 | 1,311,932 | |||||||||||||||
Capital expenditures | 103,354 | 84,398 | 75,780 | |||||||||||||||||
Depreciation and amortization expenses | 76,056 | 78,917 | 77,119 | |||||||||||||||||
Surfactants [Member] | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net sales | 1,272,723 | 1,385,932 | 1,297,555 | |||||||||||||||||
Surfactants [Member] | Operating Segments [Member] | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net sales | 1,272,723 | 1,385,932 | 1,297,555 | |||||||||||||||||
Operating income | 122,780 | 133,518 | [5] | 125,712 | [5] | |||||||||||||||
Assets | 907,032 | 850,553 | 907,032 | 850,553 | 881,415 | |||||||||||||||
Capital expenditures | 69,725 | 51,543 | 50,400 | |||||||||||||||||
Depreciation and amortization expenses | 48,422 | 50,514 | 49,102 | |||||||||||||||||
Polymers [Member] | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net sales | 512,347 | 527,420 | 546,634 | |||||||||||||||||
Polymers [Member] | Operating Segments [Member] | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net sales | 512,347 | 527,420 | 546,634 | |||||||||||||||||
Operating income | 69,567 | 66,373 | [5] | 85,745 | [5] | |||||||||||||||
Assets | 338,179 | 351,690 | 338,179 | 351,690 | 355,065 | |||||||||||||||
Capital expenditures | 29,188 | 26,663 | 21,146 | |||||||||||||||||
Depreciation and amortization expenses | 22,151 | 23,253 | 22,998 | |||||||||||||||||
Specialty Products [Member] | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net sales | 73,675 | 80,505 | 80,818 | |||||||||||||||||
Specialty Products [Member] | Operating Segments [Member] | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net sales | 73,675 | 80,505 | 80,818 | |||||||||||||||||
Operating income | 16,415 | 11,661 | [5] | 9,965 | [5] | |||||||||||||||
Assets | $ 86,718 | $ 82,957 | 86,718 | 82,957 | 75,452 | |||||||||||||||
Capital expenditures | 4,441 | 6,192 | 4,234 | |||||||||||||||||
Depreciation and amortization expenses | $ 5,483 | $ 5,150 | $ 5,019 | |||||||||||||||||
[1] | Net sales are attributed to countries based on the location of the Company facility making the sales. | |||||||||||||||||||
[2] | The 2018 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO | |||||||||||||||||||
[3] | The 2018 and 2017 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. | |||||||||||||||||||
[4] | The 2018 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. | |||||||||||||||||||
[5] | The 2018 and 2017 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO |
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, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Operating income | $ 28,491 | $ 27,966 | $ 41,065 | $ 29,738 | $ 35,451 | [1] | $ 27,145 | [1] | $ 45,386 | [1] | $ 41,283 | [1] | $ 127,260 | [2] | $ 149,265 | [1],[2] | $ 154,840 | [2] | ||
Business restructuring | [3] | (2,744) | (2,588) | (3,069) | ||||||||||||||||
Interest expense, net | (911) | (1,402) | (1,766) | (1,853) | (2,151) | (2,797) | (2,672) | (3,151) | (5,932) | (10,771) | (11,444) | |||||||||
Other, net | 4,571 | (725) | 3,486 | |||||||||||||||||
Consolidated income before income taxes | 27,886 | $ 27,449 | $ 39,534 | $ 31,030 | 30,585 | [1] | $ 24,694 | [1] | $ 43,198 | [1] | $ 39,292 | [1] | 125,899 | [2],[4] | 137,769 | [1],[2],[4] | 146,882 | [2],[4] | ||
Assets | 1,579,367 | [5] | 1,514,614 | [5] | 1,579,367 | [5] | 1,514,614 | [5] | 1,502,892 | |||||||||||
Capital expenditures | 105,572 | 86,647 | 78,613 | |||||||||||||||||
Depreciation and amortization | 78,701 | 81,115 | 79,022 | |||||||||||||||||
Operating Segments [Member] | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Operating income | [4] | 208,762 | 211,552 | 221,422 | ||||||||||||||||
Assets | 1,331,929 | 1,285,200 | 1,331,929 | 1,285,200 | 1,311,932 | |||||||||||||||
Capital expenditures | 103,354 | 84,398 | 75,780 | |||||||||||||||||
Depreciation and amortization | 76,056 | 78,917 | 77,119 | |||||||||||||||||
Segment Reconciling Items [Member] | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Unallocated corporate expenses | [6] | (78,758) | (59,699) | (63,513) | ||||||||||||||||
Unallocated corporate assets | [4],[7] | $ 247,438 | $ 229,414 | 247,438 | 229,414 | 190,960 | ||||||||||||||
Unallocated corporate expenditures | 2,218 | 2,249 | 2,833 | |||||||||||||||||
Unallocated corporate depreciation expenses | $ 2,645 | $ 2,198 | $ 1,903 | |||||||||||||||||
[1] | The 2018 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO | |||||||||||||||||||
[2] | The 2018 and 2017 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. | |||||||||||||||||||
[3] | See Note 23 regarding business restructuring costs. | |||||||||||||||||||
[4] | The 2018 and 2017 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO | |||||||||||||||||||
[5] | The 2018 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. | |||||||||||||||||||
[6] | 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. | |||||||||||||||||||
[7] | The changes in unallocated corporate assets between 2019, 2018 and 2017 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, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Schedule Of Geographical Segments [Line Items] | |||||||||||||||
Net sales | $ 444,990 | $ 451,582 | $ 473,003 | $ 489,170 | $ 466,659 | $ 507,997 | $ 519,866 | $ 499,335 | $ 1,858,745 | [1] | $ 1,993,857 | [1] | $ 1,925,007 | [1] | |
Long-lived assets | [2] | 680,755 | 646,090 | 680,755 | 646,090 | 642,099 | |||||||||
United States [Member] | |||||||||||||||
Schedule Of Geographical Segments [Line Items] | |||||||||||||||
Net sales | [1] | 1,115,993 | 1,193,938 | 1,159,578 | |||||||||||
Long-lived assets | [2] | 462,199 | 427,274 | 462,199 | 427,274 | 420,342 | |||||||||
France [Member] | |||||||||||||||
Schedule Of Geographical Segments [Line Items] | |||||||||||||||
Net sales | [1] | 145,933 | 171,010 | 176,052 | |||||||||||
Poland [Member] | |||||||||||||||
Schedule Of Geographical Segments [Line Items] | |||||||||||||||
Net sales | [1] | 156,391 | 170,474 | 188,244 | |||||||||||
United Kingdom [Member] | |||||||||||||||
Schedule Of Geographical Segments [Line Items] | |||||||||||||||
Net sales | [1] | 96,842 | 105,732 | 99,069 | |||||||||||
Long-lived assets | [2] | 21,551 | 20,225 | 21,551 | 20,225 | 21,657 | |||||||||
All Other Countries [Member] | |||||||||||||||
Schedule Of Geographical Segments [Line Items] | |||||||||||||||
Net sales | [1] | 240,996 | 252,375 | 192,104 | |||||||||||
Long-lived assets | [2] | 64,239 | 61,145 | 64,239 | 61,145 | 50,631 | |||||||||
Brazil [Member] | |||||||||||||||
Schedule Of Geographical Segments [Line Items] | |||||||||||||||
Net sales | [1] | 102,590 | 100,328 | 109,960 | |||||||||||
Long-lived assets | [2] | 46,740 | 48,427 | 46,740 | 48,427 | 55,974 | |||||||||
Germany [Member] | |||||||||||||||
Schedule Of Geographical Segments [Line Items] | |||||||||||||||
Long-lived assets | [2] | 30,084 | 29,151 | 30,084 | 29,151 | 29,116 | |||||||||
Singapore [Member] | |||||||||||||||
Schedule Of Geographical Segments [Line Items] | |||||||||||||||
Long-lived assets | [2] | 28,741 | 30,838 | 28,741 | 30,838 | 33,530 | |||||||||
China [Member] | |||||||||||||||
Schedule Of Geographical Segments [Line Items] | |||||||||||||||
Long-lived assets | [2] | $ 27,201 | $ 29,030 | $ 27,201 | $ 29,030 | $ 30,849 | |||||||||
[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. |
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, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | [1] | Sep. 30, 2018 | [1] | Jun. 30, 2018 | [1] | Mar. 31, 2018 | [1] | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Computation of Basic Earnings per Share | |||||||||||||||||||
Net income attributable to Stepan Company | $ 22,038 | $ 25,889 | $ 30,218 | $ 24,984 | $ 23,957 | $ 21,754 | $ 33,454 | $ 31,952 | $ 103,129 | [2] | $ 111,117 | [1],[2] | $ 100,774 | [2] | |||||
Weighted-average number of shares outstanding | 23,054 | 23,022 | 22,946 | ||||||||||||||||
Basic earnings per share | [2] | $ 4.47 | $ 4.83 | $ 4.39 | |||||||||||||||
Computation of Diluted Earnings per Share | |||||||||||||||||||
Net income attributable to Stepan Company | [2] | $ 103,129 | $ 111,117 | $ 100,774 | |||||||||||||||
Weighted-average number of shares outstanding | 23,054 | 23,022 | 22,946 | ||||||||||||||||
Weighted-average shares applicable to diluted earnings | 23,316 | 23,325 | 23,377 | ||||||||||||||||
Net Income Per Diluted Common Share Attributable to Stepan Company | $ 0.95 | $ 1.11 | $ 1.30 | $ 1.07 | $ 1.03 | $ 0.93 | $ 1.44 | $ 1.37 | $ 4.42 | [2] | $ 4.76 | [1],[2] | $ 4.31 | [2] | |||||
Stock Option [Member] | |||||||||||||||||||
Computation of Diluted Earnings per Share | |||||||||||||||||||
Add weighted-average net shares from assumed exercise of options (under treasury share method) | [3] | 97 | 101 | 161 | |||||||||||||||
Unvested Stock Awards [Member] | |||||||||||||||||||
Computation of Diluted Earnings per Share | |||||||||||||||||||
Add weighted-average net shares related to unvested stock awards (under treasury share method) | 2 | 3 | 8 | ||||||||||||||||
Stock Appreciation Rights (SARs) [Member] | |||||||||||||||||||
Computation of Diluted Earnings per Share | |||||||||||||||||||
Add weighted-average net shares from assumed exercise of options (under treasury share method) | 125 | 110 | 142 | ||||||||||||||||
Performance Stock Award [Member] | |||||||||||||||||||
Computation of Diluted Earnings per Share | |||||||||||||||||||
Add weighted-average net shares from assumed exercise of options (under treasury share method) | 38 | 89 | 120 | ||||||||||||||||
[1] | The 2018 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO | ||||||||||||||||||
[2] | The 2018 and 2017 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. | ||||||||||||||||||
[3] | Options/SARs to purchase 107,125, 50,770 and 18,630 shares of common stock were not included in the computations of diluted earnings per share for the years ended December 31, 2019, 2018 and 2017, respectively. The options’/SARs’ exercise prices were greater than the average market price for the common stock and the effect of the options/SARs on earnings per share would have been antidilutive. |
Earnings Per Share - Computat_2
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Parenthetical) (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Options and Stock Appreciation Rights (SARs) [Member] | |||
Earnings Per Share Basic [Line Items] | |||
Options/SARs to purchase shares of common stock not included in the computations of diluted earnings per share | 107,125 | 50,770 | 18,630 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Summary of Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | [1] | $ 807,425 | ||
Other comprehensive income before reclassifications | 8,556 | $ (45,000) | $ 25,632 | |
Amounts reclassified from AOCI | 2,082 | 3,080 | 2,270 | |
Remeasurement adjustment related to the Tax Act | [2] | (5,325) | ||
Net current period other comprehensive income | 5,313 | (41,920) | 27,902 | |
Ending Balance | [1] | 891,783 | 807,425 | |
Foreign Currency Translation Adjustments [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | (108,481) | (70,561) | (96,775) | |
Other comprehensive income before reclassifications | 4,444 | (37,920) | 26,214 | |
Net current period other comprehensive income | 4,444 | (37,920) | 26,214 | |
Ending Balance | (104,037) | (108,481) | (70,561) | |
Defined Benefit Pension Plan Adjustments [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | (33,083) | (29,093) | (30,790) | |
Other comprehensive income before reclassifications | 4,112 | (7,080) | (582) | |
Amounts reclassified from AOCI | 2,091 | 3,090 | 2,279 | |
Remeasurement adjustment related to the Tax Act | [2] | (5,325) | ||
Net current period other comprehensive income | 878 | (3,990) | 1,697 | |
Ending Balance | (32,205) | (33,083) | (29,093) | |
Cash Flow Hedge Adjustments [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | 81 | 91 | 100 | |
Amounts reclassified from AOCI | (9) | (10) | (9) | |
Net current period other comprehensive income | (9) | (10) | (9) | |
Ending Balance | 72 | 81 | 91 | |
AOCI Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | (141,483) | (99,563) | (127,465) | |
Ending Balance | $ (136,170) | $ (141,483) | $ (99,563) | |
[1] | The 2018 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. | |||
[2] | Amounts in parentheses denote expense to statement of income. |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Summary of Amounts Reclassified Out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | [1] | Sep. 30, 2018 | [1] | Jun. 30, 2018 | [1] | Mar. 31, 2018 | [1] | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||
Income Before Provision for Income Taxes | $ 27,886 | $ 27,449 | $ 39,534 | $ 31,030 | $ 30,585 | $ 24,694 | $ 43,198 | $ 39,292 | $ 125,899 | [2],[3] | $ 137,769 | [1],[2],[3] | $ 146,882 | [2],[3] | |||||
Tax benefit | [3] | (22,798) | (26,664) | (46,139) | |||||||||||||||
Cost of Sales | [3] | 1,519,031 | 1,654,508 | 1,578,840 | |||||||||||||||
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 | [4] | (12) | (12) | (14) | |||||||||||||||
Actuarial loss | [4] | (2,739) | (4,059) | (3,509) | |||||||||||||||
Income Before Provision for Income Taxes | [4],[5] | (2,751) | (4,071) | (3,523) | |||||||||||||||
Tax benefit | [4] | 660 | 981 | 1,244 | |||||||||||||||
Income applicable to common stock | [4] | (2,091) | (3,090) | (2,279) | |||||||||||||||
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 | [4] | 9 | 10 | 9 | |||||||||||||||
Income applicable to common stock | [4] | 9 | 10 | 9 | |||||||||||||||
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 | [4] | 9 | 10 | 9 | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Member] | |||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||
Income applicable to common stock | [4] | $ (2,082) | $ (3,080) | $ (2,270) | |||||||||||||||
[1] | The 2018 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO | ||||||||||||||||||
[2] | The 2018 and 2017 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO | ||||||||||||||||||
[3] | The 2018 and 2017 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. | ||||||||||||||||||
[4] | Amounts in parentheses denote expense to statement of income. | ||||||||||||||||||
[5] | This component of accumulated other comprehensive income is included in the computation of net periodic benefit cost (see Note 14 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) | Dec. 17, 2019USD ($) | Mar. 26, 2018USD ($)ft²T | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Business Acquisition [Line Items] | ||||||
Paid from cash on hand | $ 9,000,000 | $ 22,852,000 | $ 4,339,000 | |||
Goodwill | $ (22,954,000) | (26,086,000) | (22,954,000) | (25,118,000) | ||
Surfactants [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | (17,054,000) | (20,197,000) | $ (17,054,000) | $ (19,160,000) | ||
2019 Acquisition [Member] | Oilfield Demulsifier Product Line [Member] | Surfactants [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Paid from cash on hand | $ 9,000,000 | |||||
Goodwill | (3,497,000) | |||||
2019 Acquisition [Member] | Oilfield Demulsifier Product Line [Member] | Surfactants [Member] | Product Know-how [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets identified related to acquisition | (1,500,000) | |||||
2019 Acquisition [Member] | Oilfield Demulsifier Product Line [Member] | Surfactants [Member] | Customer Relationships [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets identified related to acquisition | $ (3,200,000) | |||||
2019 Acquisition [Member] | Minimum [Member] | Oilfield Demulsifier Product Line [Member] | Surfactants [Member] | Product Know-how [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Weighted average amortization periods of identifiable intangibles assets | 13 years | |||||
2019 Acquisition [Member] | Minimum [Member] | Oilfield Demulsifier Product Line [Member] | Surfactants [Member] | Customer List [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Weighted average amortization periods of identifiable intangibles assets | 22 years | |||||
2019 Acquisition [Member] | Maximum [Member] | Oilfield Demulsifier Product Line [Member] | Surfactants [Member] | Product Know-how [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Weighted average amortization periods of identifiable intangibles assets | 14 years | |||||
2019 Acquisition [Member] | Maximum [Member] | Oilfield Demulsifier Product Line [Member] | Surfactants [Member] | Customer List [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Weighted average amortization periods of identifiable intangibles assets | 25 years | |||||
2018 Acquisition [Member] | BASF Mexicana, S.A. DE C.V. [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Total assets acquired | $ 22,852,000 | |||||
2018 Acquisition [Member] | BASF Mexicana, S.A. DE C.V. [Member] | Surfactants [Member] | Ecatepec, Mexico [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Paid from cash on hand | 21,475,000 | |||||
Intangible assets identified related to acquisition | $ 0 | |||||
Incremental inventory and related value-added taxes | 1,377,000 | |||||
Capacity of production facility expected to be acquired | T | 50,000 | |||||
Warehouse space, laboratory and office space currently expected to be acquired | ft² | 124,000 | |||||
Total assets acquired | $ 22,852,000 | |||||
Payment of incremental inventory and related value-added taxes | $ 1,377,000 |
Acquisitions - Summary of Asset
Acquisitions - Summary of Assets Acquired (Detail) - 2018 Acquisition [Member] - BASF Mexicana, S.A. DE C.V. [Member] $ in Thousands | Mar. 26, 2018USD ($) |
Assets: | |
Property, plant and equipment | $ 14,464 |
Inventory | 5,687 |
Other Receivable | 2,701 |
Total assets acquired | $ 22,852 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Disaggregation Of Revenue [Line Items] | |
Contract assets | $ 0 |
Contract liabilities | $ 350,000 |
Minimum [Member] | |
Disaggregation Of Revenue [Line Items] | |
Payment terms on sales of product | 30 days |
Maximum [Member] | |
Disaggregation Of Revenue [Line Items] | |
Payment terms on sales of product | 60 days |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Summary of Geographic Disaggregation of Net Sales (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Disaggregation Of Revenue [Line Items] | ||||||||||||||
Net sales | $ 444,990 | $ 451,582 | $ 473,003 | $ 489,170 | $ 466,659 | $ 507,997 | $ 519,866 | $ 499,335 | $ 1,858,745 | [1] | $ 1,993,857 | [1] | $ 1,925,007 | [1] |
North America [Member] | ||||||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||||||
Net sales | 1,142,391 | 1,223,153 | 1,159,579 | |||||||||||
Europe [Member] | ||||||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||||||
Net sales | 411,340 | 461,678 | 477,277 | |||||||||||
Latin America [Member] | ||||||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||||||
Net sales | 215,709 | 216,287 | 195,253 | |||||||||||
Asia [Member] | ||||||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||||||
Net sales | 89,305 | 92,739 | 92,898 | |||||||||||
Surfactants [Member] | ||||||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||||||
Net sales | 1,272,723 | 1,385,932 | 1,297,555 | |||||||||||
Surfactants [Member] | North America [Member] | ||||||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||||||
Net sales | 766,341 | 831,592 | 763,044 | |||||||||||
Surfactants [Member] | Europe [Member] | ||||||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||||||
Net sales | 240,711 | 276,742 | 275,121 | |||||||||||
Surfactants [Member] | Latin America [Member] | ||||||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||||||
Net sales | 212,405 | 212,824 | 190,802 | |||||||||||
Surfactants [Member] | Asia [Member] | ||||||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||||||
Net sales | 53,266 | 64,774 | 68,588 | |||||||||||
Polymers [Member] | ||||||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||||||
Net sales | 512,347 | 527,420 | 546,634 | |||||||||||
Polymers [Member] | North America [Member] | ||||||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||||||
Net sales | 314,549 | 323,360 | 329,629 | |||||||||||
Polymers [Member] | Europe [Member] | ||||||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||||||
Net sales | 158,455 | 172,632 | 188,244 | |||||||||||
Polymers [Member] | Latin America [Member] | ||||||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||||||
Net sales | 3,304 | 3,463 | 4,451 | |||||||||||
Polymers [Member] | Asia [Member] | ||||||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||||||
Net sales | 36,039 | 27,965 | 24,310 | |||||||||||
Specialty Products [Member] | ||||||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||||||
Net sales | 73,675 | 80,505 | 80,818 | |||||||||||
Specialty Products [Member] | North America [Member] | ||||||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||||||
Net sales | 61,501 | 68,201 | 66,906 | |||||||||||
Specialty Products [Member] | Europe [Member] | ||||||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||||||
Net sales | $ 12,174 | $ 12,304 | $ 13,912 | |||||||||||
[1] | Net sales are attributed to countries based on the location of the Company facility making the sales. |
Business Restructuring - Additi
Business Restructuring - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Jun. 30, 2017Employees | Mar. 31, 2019USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2019USD ($)Employees | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | ||
Restructuring Cost And Reserve [Line Items] | ||||||||
Restructuring costs | [1] | $ 2,744,000 | $ 2,588,000 | $ 3,069,000 | ||||
2019 Restructuring [Member] | Netherlands [Member] | ||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||
Severance costs | 554,000 | |||||||
2019 Restructuring [Member] | Early Termination of Lease Expenses [Member] | Netherlands [Member] | ||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||
Business restructuring | 122,000 | |||||||
2018 Restructuring [Member] | Germany [Member] | Surfactants [Member] | ||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||
Restructuring costs | 2,313,000 | |||||||
2018 Restructuring [Member] | Germany [Member] | Surfactants [Member] | Asset And Spare Part | ||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||
Restructuring costs | $ 1,404,000 | |||||||
2018 Restructuring [Member] | Decommissioning Costs | Germany [Member] | Surfactants [Member] | ||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||
Restructuring costs | 909,000 | |||||||
2017 Restructuring [Member] | Fieldsboro, NJ [Member] | ||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||
Business restructuring | $ 251,000 | $ 915,000 | ||||||
Depreciation expense | $ 1,290,000 | |||||||
2017 Restructuring [Member] | Singapore [Member] | Surfactants [Member] | ||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||
Number positions eliminated | Employees | 11 | |||||||
2017 Restructuring [Member] | Termination Benefits [Member] | Singapore [Member] | Surfactants [Member] | ||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||
Business restructuring | $ 132,000 | $ 0 | ||||||
2016 Restructuring [Member] | Longford Mills [Member] | Surfactants [Member] | ||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||
Business restructuring | $ 7,484,000 | |||||||
Number positions eliminated | Employees | 30 | |||||||
2016 Restructuring [Member] | Termination Benefits [Member] | Longford Mills [Member] | Surfactants [Member] | ||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||
Business restructuring | $ 1,644,000 | |||||||
2016 Restructuring [Member] | Other Expense [Member] | Longford Mills [Member] | Surfactants [Member] | ||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||
Business restructuring | $ 5,840,000 | |||||||
[1] | See Note 23 regarding business restructuring costs. |
Insurance Recovery - Additional
Insurance Recovery - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Insurance Recovery [Abstract] | |
Insurance recovery proceeds | $ 8,965,000 |
Customer Claims - Additional In
Customer Claims - Additional Information (Detail) - Surfactants [Member] | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2019USD ($) | Dec. 31, 2017USD ($)Claim | Dec. 31, 2016Claim | Dec. 31, 2016USD ($) | |
Loss Contingencies [Line Items] | ||||
Number of customer claims | Claim | 2 | |||
Insurance claims reserve amount | $ | $ 7,367,000 | |||
Claim paid | $ | $ 703,000 | $ 2,709,000 | ||
Number of claims and reversed | Claim | 1 |
Statement of Cash Flows - Non_2
Statement of Cash Flows - Noncash Investing and Financing Activities - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Supplemental Cash Flow Elements [Line Items] | |||
Noncash investing activities, payables incurred for property, plant and equipment expenditures, unpaid | $ 16,890,000 | $ 15,119,000 | $ 12,600,000 |
Common Stock [Member] | Stock Award Plan [Member] | |||
Supplemental Cash Flow Elements [Line Items] | |||
Noncash financing activities shares issued | 96,095 | 99,497 | 35,372 |
Noncash financing activities issued value | $ 8,893,000 | $ 7,931,000 | $ 2,941,000 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||
Net Sales | $ 444,990 | $ 451,582 | $ 473,003 | $ 489,170 | $ 466,659 | $ 507,997 | $ 519,866 | $ 499,335 | $ 1,858,745 | [1] | $ 1,993,857 | [1] | $ 1,925,007 | [1] | ||||
Gross Profit | 84,744 | 77,402 | 92,959 | 84,609 | 74,594 | [2] | 83,576 | [2] | 89,981 | [2] | 91,198 | [2] | 339,714 | [3] | 339,349 | [2],[3] | 346,167 | [3] |
Operating Income | 28,491 | 27,966 | 41,065 | 29,738 | 35,451 | [2] | 27,145 | [2] | 45,386 | [2] | 41,283 | [2] | 127,260 | [3] | 149,265 | [2],[3] | 154,840 | [3] |
Interest, net | (911) | (1,402) | (1,766) | (1,853) | (2,151) | (2,797) | (2,672) | (3,151) | (5,932) | (10,771) | (11,444) | |||||||
Income Before Income Taxes | 27,886 | 27,449 | 39,534 | 31,030 | 30,585 | [2] | 24,694 | [2] | 43,198 | [2] | 39,292 | [2] | 125,899 | [3],[4] | 137,769 | [2],[3],[4] | 146,882 | [3],[4] |
Net Income | 22,033 | 25,880 | 30,210 | 24,978 | 23,954 | [2] | 21,754 | [2] | 33,452 | [2] | 31,945 | [2] | 103,101 | [3] | 111,105 | [2],[3],[5] | 100,743 | [3],[5] |
Net Income Attributable to Stepan Company | $ 22,038 | $ 25,889 | $ 30,218 | $ 24,984 | $ 23,957 | [2] | $ 21,754 | [2] | $ 33,454 | [2] | $ 31,952 | [2] | $ 103,129 | [3] | $ 111,117 | [2],[3] | $ 100,774 | [3] |
Per Diluted Share | $ 0.95 | $ 1.11 | $ 1.30 | $ 1.07 | $ 1.03 | [2] | $ 0.93 | [2] | $ 1.44 | [2] | $ 1.37 | [2] | $ 4.42 | [3] | $ 4.76 | [2],[3] | $ 4.31 | [3] |
[1] | Net sales are attributed to countries based on the location of the Company facility making the sales. | |||||||||||||||||
[2] | The 2018 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO | |||||||||||||||||
[3] | The 2018 and 2017 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. | |||||||||||||||||
[4] | The 2018 and 2017 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO | |||||||||||||||||
[5] | The retained earnings and net income amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. |