Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 24, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | SCL | |
Entity Registrant Name | STEPAN COMPANY | |
Entity Current Reporting Status | Yes | |
Entity Central Index Key | 0000094049 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 22,472,642 | |
Entity Tax Identification Number | 36-1823834 | |
Entity File Number | 1-4462 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 22 West Frontage Road | |
Entity Address, City or Town | Northfield | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60093 | |
City Area Code | 847 | |
Local Phone Number | 446-7500 | |
Security Exchange Name | NYSE | |
Title of 12(b) Security | Common Stock, $1 par value | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
Net Sales | $ 449,987 | $ 489,170 |
Cost of Sales | 370,718 | 404,561 |
Gross Profit | 79,269 | 84,609 |
Operating Expenses: | ||
Selling | 13,532 | 13,969 |
Administrative | 18,872 | 19,306 |
Research, development and technical services | 13,827 | 13,390 |
Deferred compensation (income) expense | (7,323) | 7,473 |
Total Operating expenses | 38,908 | 54,138 |
Business restructuring expenses (Note 16) | (357) | (733) |
Operating Income | 40,004 | 29,738 |
Other Income (Expense): | ||
Interest, net | (1,230) | (1,853) |
Other, net (Note 15) | (3,262) | 3,145 |
Nonoperating Income (Expense), Total | (4,492) | 1,292 |
Income Before Provision for Income Taxes | 35,512 | 31,030 |
Provision for Income Taxes | 7,973 | 6,052 |
Net Income | 27,539 | 24,978 |
Net Loss Attributable to Noncontrolling Interests (Note 2) | 6 | 6 |
Net Income Attributable to Stepan Company | $ 27,545 | $ 24,984 |
Net Income Per Common Share Attributable to Stepan Company (Note 10): | ||
Basic | $ 1.20 | $ 1.08 |
Diluted | $ 1.18 | $ 1.07 |
Shares Used to Compute Net Income Per Common Share Attributable to Stepan Company (Note 10): | ||
Basic | 23,023 | 23,099 |
Diluted | 23,285 | 23,332 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 27,539 | $ 24,978 | |
Other comprehensive income: | |||
Foreign currency translation adjustments (Note 11) | [1] | (41,195) | 3,707 |
Defined benefit pension adjustments, net of tax (Note 11) | 808 | 543 | |
Derivative instrument activity, net of tax (Note 11) | (2) | (2) | |
Total other comprehensive income | (40,389) | 4,248 | |
Comprehensive income | (12,850) | 29,226 | |
Comprehensive income attributable to noncontrolling interests (Note 2) | 19 | (14) | |
Comprehensive income attributable to Stepan Company | $ (12,831) | $ 29,212 | |
[1] | Includes foreign currency translation adjustments related to noncontrolling interest. |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current Assets: | ||
Cash and cash equivalents | $ 254,339 | $ 315,383 |
Receivables, net | 290,568 | 276,841 |
Inventories (Note 6) | 198,194 | 203,647 |
Other current assets | 25,443 | 22,918 |
Total current assets | 768,544 | 818,789 |
Property, Plant and Equipment: | ||
Cost | 1,752,932 | 1,762,135 |
Less: Accumulated depreciation | (1,125,390) | (1,122,818) |
Property, plant and equipment, net | 627,542 | 639,317 |
Goodwill, net | 23,059 | 26,086 |
Other intangible assets, net | 15,819 | 15,352 |
Long-term investments (Note 3) | 22,209 | 28,227 |
Operating lease assets | 36,248 | 38,386 |
Other non-current assets | 12,879 | 13,210 |
Total assets | 1,506,300 | 1,579,367 |
Current Liabilities: | ||
Current maturities of long-term debt (Note 14) | 23,571 | 23,571 |
Accounts payable | 187,941 | 194,276 |
Accrued liabilities | 98,646 | 121,267 |
Total current liabilities | 310,158 | 339,114 |
Deferred income taxes | 23,133 | 23,391 |
Long-term debt, less current maturities (Note 14) | 198,566 | 198,532 |
Non-current operating lease liabilities | 27,960 | 29,654 |
Other non-current liabilities | 79,011 | 96,180 |
Commitments and Contingencies (Note 8) | ||
Equity: | ||
Common stock, $1 par value; authorized 60,000,000 shares; Issued 26,540,546 shares in 2020 and 26,493,335 shares in 2019 | 26,541 | 26,493 |
Additional paid-in capital | 195,661 | 193,135 |
Accumulated other comprehensive loss (Note 11) | (176,546) | (136,170) |
Retained earnings | 943,807 | 922,464 |
Less: Common treasury stock, at cost, 4,074,935 shares in 2020 and 3,979,735 shares in 2019 | (122,685) | (114,139) |
Total Stepan Company stockholders' equity | 866,778 | 891,783 |
Noncontrolling interests (Note 2) | 694 | 713 |
Total equity | 867,472 | 892,496 |
Total liabilities and equity | $ 1,506,300 | $ 1,579,367 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 60,000,000 | 60,000,000 |
Common stock, shares issued | 26,540,546 | 26,493,335 |
Treasury stock, shares | 4,074,935 | 3,979,735 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash Flows From Operating Activities | ||
Net income | $ 27,539 | $ 24,978 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 20,023 | 19,403 |
Deferred compensation | (7,323) | 7,473 |
Realized and unrealized (gains) losses on long-term investments | 3,875 | (2,404) |
Stock-based compensation | 1,202 | 2,596 |
Deferred income taxes | 131 | (1,857) |
Other non-cash items | 395 | 1,443 |
Changes in assets and liabilities: | ||
Receivables, net | (30,767) | (17,434) |
Inventories | (447) | 16,231 |
Other current assets | (3,180) | (3,247) |
Accounts payable and accrued liabilities | (16,583) | (42,279) |
Pension liabilities | (236) | (392) |
Environmental and legal liabilities | (947) | 6 |
Deferred revenues | (157) | (81) |
Net Cash (Used In) Provided By Operating Activities | (6,475) | 4,436 |
Cash Flows From Investing Activities | ||
Expenditures for property, plant and equipment | (33,202) | (25,741) |
Asset acquisition (Note 17) | (2,040) | |
Other, net | 2,331 | 2,037 |
Net Cash Used In Investing Activities | (32,911) | (23,704) |
Cash Flows From Financing Activities | ||
Revolving debt and bank overdrafts, net | (4,230) | |
Dividends paid | (6,202) | (5,643) |
Company stock repurchased | (7,243) | (77) |
Stock option exercises | 155 | 1,890 |
Other, net | (1,128) | (2,718) |
Net Cash Used In Financing Activities | (14,418) | (10,778) |
Effect of Exchange Rate Changes on Cash | (7,240) | (689) |
Net Decrease in Cash and Cash Equivalents | (61,044) | (30,735) |
Cash and Cash Equivalents at Beginning of Period | 315,383 | 300,194 |
Cash and Cash Equivalents at End of Period | 254,339 | 269,459 |
Supplemental Cash Flow Information | ||
Cash payments of income taxes, net of refunds/payments | 3,316 | 3,018 |
Cash payments of interest | $ 2,122 | $ 2,131 |
Condensed Consolidated Financia
Condensed Consolidated Financial Statements | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Condensed Consolidated Financial Statements | 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS The condensed consolidated financial statements included herein have been prepared by Stepan Company (the Company), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted pursuant to such rules and regulations, although management believes that the disclosures are adequate and make the information presented not misleading. In the opinion of management, all adjustments, consisting only of normal recurring accruals, necessary to present fairly the Company’s financial position as of March 31, 2020, and its results of operations and cash flows for the three months ended March 31, 2020 and 2019, have been included. These financial statements and related footnotes should be read in conjunction with the financial statements and related footnotes included in the Company’s 2019 Annual Report on Form 10-K. |
Reconciliations of Equity
Reconciliations of Equity | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Reconciliations of Equity | 2 . RECONCILIATIONS OF EQUITY Below are reconciliations of total equity, Company equity and equity attributable to noncontrolling interests for the three months ended March 31, 2020 and 2019: (In thousands, except share and per share amounts) Total Common Stock Additional Paid-in Capital Treasury Stock Accumulated Other Comprehensive Income (Loss) Retained Earnings Noncontrolling Interest (1) Balance, December 31, 2019 $ 892,496 $ 26,493 $ 193,135 $ (114,139 ) $ (136,170 ) $ 922,464 $ 713 Issuance of 2,747 shares of common stock under stock option plan 155 3 152 — — — — Purchase of 89,225 shares of common stock (7,243 ) — — (7,243 ) — — — Stock-based and deferred compensation 1,116 45 2,374 (1,303 ) — — — Net income 27,539 — — — — 27,545 (6 ) Other comprehensive income (40,389 ) — — — (40,376 ) — (13 ) Cash dividends paid: Common stock ($0.28 per share) (6,202 ) — — — — (6,202 ) — Balance, March 31, 2020 $ 867,472 $ 26,541 $ 195,661 $ (122,685 ) $ (176,546 ) $ 943,807 $ 694 (In thousands, except share and per share amounts) Total Common Stock Additional Paid-in Capital Treasury Stock Accumulated Other Comprehensive Income (Loss) Retained Earnings Noncontrolling Interest (1) Balance, December 31, 2018 $ 808,185 $ 26,309 $ 182,881 $ (97,389 ) $ (141,483 ) $ 837,107 $ 760 Issuance of 38,706 shares of common stock under stock option plan 1,890 39 1,851 — — — — Purchase of 900 shares of common stock (77 ) — — (77 ) — — — Stock-based and deferred compensation (1,360 ) 93 1,179 (2,632 ) — — — Net income 24,978 — — — — 24,984 (6 ) Other comprehensive income 4,248 — — — 4,228 — 20 Cash dividends paid: Common stock ($0.25 per share) (5,643 ) — — — — (5,643 ) Other (2) — — — — (5,325 ) 5,325 — Balance, March 31, 2019 $ 832,221 $ 26,441 $ 185,911 $ (100,098 ) $ (142,580 ) $ 861,773 $ 774 (1) (2) Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3 . FAIR VALUE MEASUREMENTS The following were the financial instruments held by the Company at March 31, 2020, and December 31, 2019, and the methods and assumptions used to estimate the instruments’ fair values: Cash and cash equivalents Carrying value approximated fair value because of the short maturity of the instruments. Fair value of cash and cash equivalents is a Level 1 measurement. Derivative assets and liabilities Derivative assets and liabilities include the foreign currency exchange contracts discussed in Note 4. Fair value and carrying value were the same because the contracts were recorded at fair value. The fair values of the foreign currency contracts were calculated as the difference between the applicable forward foreign exchange rates at the reporting date and the contracted foreign exchange rates multiplied by the contracted notional amounts. See the table below that describes financial assets and liabilities measured on a recurring basis for the reported fair values of derivative assets and liabilities. Long-term investments Long-term investments include the mutual fund assets the Company held to fund a portion of its deferred compensation liabilities and all of its non-qualified supplemental executive defined contribution obligations (see the defined contribution plans section of Note 9). Fair value and carrying value were the same because the mutual fund assets were recorded at fair value. Fair values for the mutual funds were calculated using the published market price per unit at the reporting date multiplied by the number of units held at the reporting date. See the table that follows the financial instrument descriptions for the reported fair value of long-term investments. Debt obligations The fair value of debt with original maturities greater than one year comprised the combined present values of scheduled principal and interest payments for each of the various loans, individually discounted at rates equivalent to those which could be obtained by the Company for new debt issues with durations equal to the average life to maturity of each loan. The fair values of the remaining Company debt obligations approximated their carrying values due to the short-term nature of the debt. The Company’s fair value measurements for debt fall within level 2 of the fair value hierarchy. At March 31, 2020, and December 31, 2019, 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 $720,000 and $754,000 as of March 31, 2020 and December 31, 2019, respectively): (In thousands) March 31, 2020 December 31, 2019 Fair value $ 219,302 $ 226,712 Carrying value 222,857 222,857 The following tables present financial assets and liabilities, excluding cash and cash equivalents, measured on a recurring basis at fair value as of March 31, 2020, and December 31, 2019, and the level within the fair value hierarchy in which the fair value measurements fall: (In thousands) March 2020 Level 1 Level 2 Level 3 Mutual fund assets $ 22,209 $ 22,209 $ — $ — Derivative assets: Foreign currency contracts 36 — 36 — Total assets at fair value $ 22,245 $ 22,209 $ 36 $ — Derivative liabilities: Foreign currency contracts $ 1,188 $ — $ 1,188 $ — (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 $ — |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 4 . DERIVATIVE INSTRUMENTS The Company is exposed to certain risks relating to its ongoing business operations. The primary risk managed by the use of derivative instruments is foreign currency exchange risk. The Company holds forward foreign currency exchange contracts that are not designated as any type of accounting hedge as defined by GAAP. The Company uses these contracts to manage its exposure to exchange rate fluctuations on certain Company subsidiary cash, accounts receivable, accounts payable and other obligation balances that are denominated in currencies other than the entities’ functional currencies. The forward foreign exchange contracts are recognized on the balance sheet as either an asset or a liability measured at fair value. Gains and losses arising from recording the foreign exchange contracts at fair value are reported in earnings as offsets to the losses and gains reported in earnings arising from the re-measurement of the asset and liability balances into the applicable functional currencies. At March 31, 2020, and December 31, 2019, the Company had open forward foreign currency exchange contracts, all with durations of one to three months, to buy or sell foreign currencies with U.S. dollar equivalent amounts of $28,447,000 and $48,540,368, respectively. The fair values of the derivative instruments held by the Company on March 31, 2020, and December 31, 2019, are disclosed in Note 3. Derivative instrument gains and losses for the three-month periods ended March 31, 2020 and 2019, were immaterial. For amounts reclassified out of accumulated other comprehensive income (loss) (AOCI) into earnings for the three-month periods ended March 31, 2020 and 2019, see Note 11. |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation | 5 . STOCK-BASED COMPENSATION On March 31, 2020, the Company had stock options, stock awards and stock appreciation rights (SARs) outstanding under its 2011 Incentive Compensation Plan. SARs granted prior to 2015 are cash-settled, and SARs granted after 2014 are stock-settled. Stock options and SARs granted prior to 2017 generally cliff vested after two years. Starting in 2017, stock options and SARs have a three-year one-third Compensation expense recorded for all stock options, stock awards and SARs was as follows: (In thousands) Three Months Ended March 31 2020 2019 $ 1,202 $ 2,596 The quarter-over-quarter decrease in stock-based compensation expense was primarily attributable to cash-settled SARs. The quarterly decrease in cash-settled SARs compensation expense reflects a decrease in the market value of Company stock during the first quarter of 2020 versus an increase in the first quarter of 2019. Unrecognized compensation costs for stock options, stock awards and SARs were as follows: (In thousands) March 31, 2020 December 31, 2019 Stock options $ 3,320 $ 1,850 Stock awards 5,819 3,618 SARs 7,209 4,058 The increases in unrecognized compensation costs for stock options, stock awards and SARs reflected the 2020 grants of: Shares Stock options 81,065 Stock awards (at target) 43,046 SARs 173,754 The unrecognized compensation costs at March 31, 2020, are expected to be recognized over weighted-average periods of 2.2 years for stock options, 2.1 years for stock awards and 2.2 years for SARs. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | 6 . INVENTORIES The composition of inventories at March 31, 2020, and December 31, 2019, was as follows: (In thousands) March 31, 2020 December 31, 2019 Finished goods $ 133,853 $ 139,785 Raw materials 64,341 63,862 Total inventories $ 198,194 $ 203,647 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | 7 . LEASES The Company adopted ASU No. 2016-02, Leases (Topic 842) Leases (Topic 842) 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 38 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 March 31, 2020, the Company had additional leases, primarily for equipment and storage tanks, that have not commenced of approximately $731,000. These leases will commence in the second quarter of 2020 with lease terms ranging from three to 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. 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) March 31, 2020 Lease Cost Operating lease cost $ 2,721 Short-term lease cost 1,179 Variable lease cost 298 Total lease cost $ 4,198 Other Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow from operating leases $ 2,747 Right-of-use assets obtained in exchange for new operating lease liabilities 666 (In thousands) Undiscounted Cash Flows: 2020 (excluding the three months ended March 31, 2020) $ 7,484 2021 7,632 2022 6,421 2023 5,118 2024 3,060 Subsequent to 2024 16,437 Total Undiscounted Cash Flows $ 46,152 Less: Imputed interest (9,888 ) Present value $ 36,264 Current operating lease liabilities (1) 8,304 Non-current operating lease liabilities 27,960 Total lease liabilities $ 36,264 (1) This item is included in Accrued liabilities line on the Company’s Condensed Consolidated Balance Sheet. Weighted-average remaining lease term-operating leases 9 years Weighted-average discount rate-operating leases 4.3 % |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingencies | 8 . CONTINGENCIES There are a variety of legal proceedings pending or threatened against the Company that occur in the normal course of the Company’s business, the majority of which relate to environmental assessment, protection and remediation matters. Some of these proceedings may result in fines, penalties, judgments or costs being assessed against the Company at some future time. The Company’s operations are subject to extensive local, state and federal regulations, including the U.S. Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA) and the Superfund amendments of 1986 (Superfund) as well as comparable regulations applicable to the Company’s foreign l ocations. Over the years, the Company has received requests for information related to or has been named by government authorities as a potentially responsible party (PRP) at a number of sites where cleanup costs have been or may be incurred under CERCLA a nd 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 p rovisions 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 March 31, 2020, the Company estimated a range of possible environmental and legal losses of $24.9 million to $43.0 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 range. These accruals totaled $24.9 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, 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 March 31, 2020: Maywood, New Jersey Site The Company’s property in Maywood, New Jersey and property formerly owned by the Company adjacent to its current site and other nearby properties (collectively, the Maywood site) were listed on the National Priorities List in September 1993 pursuant to the provisions of CERCLA because of alleged chemical contamination. Pursuant to (i) a September 21, 1987 Administrative Order on Consent entered into between the U.S. Environmental Protection Agency (USEPA) and the Company for property formerly owned by the Company at the Maywood site and (ii) the issuance of an order on November 12, 2004 by the USEPA to the Company for property currently owned by the Company at the Maywood site, the Company has completed various Remedial Investigation Feasibility Studies (RI/FS), and on September 24, 2014, USEPA issued its Record of Decision (ROD) for chemically-contaminated soil at the Maywood site, which requires the Company to perform remedial cleanup of the soil and buried waste. The USEPA has not yet issued a ROD for chemically-contaminated groundwater at the Maywood site. Based on the most current information available, the Company believes its recorded liability is reasonable having considered the range of estimated costs of remediation for the Maywood site. The estimate of the cost of remediation for the Maywood site could change as the Company continues to hold discussions with the USEPA, as the design of the remedial action is finalized, if a groundwater ROD is issued or if other PRPs are identified. The ultimate amount for which the Company is liable could differ materially from the Company’s current recorded liability. In April 2015, the Company entered into an Administrative Settlement Agreement and Administrative Order on Consent with USEPA which requires payment of certain costs and performance of certain investigative and design work for chemically-contaminated soil. Based on the Company’s review and analysis of this order, no changes to the Company’s recorded liability for claims associated with soil remediation of chemical contamination 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 the Cooperative Agreement, the United States is responsible for the removal of radioactive waste at the Maywood site and it has incurred and will incur future remediation costs at the site. As such, the Company recorded no liability related to this settlement agreement. D’Imperio Property Site During the mid-1970’s, Jerome Lightman and the Lightman Drum Company disposed of hazardous substances generated by the Company at several sites in New Jersey, including the D’Imperio site. The Company was named as a PRP in an October 2, 1998, lawsuit in the U.S. District Court for the District of New Jersey that involved the D’Imperio Site. In 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 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 cost 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 contributions. The Company has paid the current owner $2.9 million for the Company’s portion of environmental response costs at the Wilmington site through March 31, 2020. 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 which may be filed by the Town of Wilmington, Massachusetts, in connection with this site. While the Company has denied any liability for any such claims, the Company agreed to this waiver while the parties continue to discuss the resolution of any potential claim which may be filed. Other U.S. Sites Through the regular environmental monitoring of its plant production sites, the Company discovered levels of chemical contamination that were above thresholds allowed by law at its Millsdale, Illinois and Fieldsboro, New Jersey plants. The Company voluntarily reported its results to the applicable state environmental agencies. As a result, the Company is required to perform self-remediation of the affected areas. Based on current information, the Company believes that its recorded liability for the remediation of the affected areas is appropriate based on an estimate of expected costs. However, actual costs could differ materially from current estimates. |
Postretirement Benefit Plans
Postretirement Benefit Plans | 3 Months Ended |
Mar. 31, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Postretirement Benefit Plans | 9 . POSTRETIREMENT BENEFIT PLANS Defined Benefit Pension Plans The Company sponsors various funded qualified and unfunded non-qualified defined benefit pension plans, the most significant of which cover employees in the U.S. and U.K. locations. The U.S. and U.K. defined benefit pension plans are frozen and service benefits are no longer being accrued. Components of Net Periodic Benefit Cost UNITED STATES UNITED KINGDOM (In thousands) Three Months Ended March 31 Three Months Ended March 31 2020 2019 2020 2019 Interest cost $ 1,421 $ 1,661 $ 109 $ 142 Expected return on plan assets (2,437 ) (2,361 ) (134 ) (201 ) Amortization of net actuarial loss 1,052 652 19 63 Net periodic (benefit) cost $ 36 $ (48 ) $ (6 ) $ 4 Employer Contributions U.S. Plans As a result of pension funding relief provisions included in the Highway and Transportation Funding Act of 2014, the Company is not required to make contributions to its funded U.S. qualified defined benefit plans. Approximately $312,000 is expected to be paid to the unfunded non-qualified plans in 2020. Of such amount, $ 143,000 had been paid related to the non-qualified pl ans as of March 31, 2020. U.K. Plan The Company’s U.K. subsidiary expects to contribute approximately $495,000 to its defined benefit pension plan in 2020. Of such amount, $168,000 had been contributed to the plan as of March 31, 2020. Defined Contribution Plans The Company sponsors retirement savings defined contribution plans that cover eligible U.S. and U.K. employees. The Company’s U.S. retirement plans include two qualified plans, one of which is a 401(k) plan and one of which is an employee stock ownership plan, and one non-qualified supplemental executive plan. In the three months ended March 31, 2020 and 2019, the Company made profit sharing contributions into the qualified retirement plans for U.S. employees and for certain non-U.S. employees. Profit sharing contributions were determined using a formula applied to Company earnings. In 2019 and 2020, 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. Defined contribution plan expenses for the Company’s qualified contribution plans were as follows: (In thousands) Three Months Ended March 31 2020 2019 Retirement savings contributions $ 1,758 $ 2,409 Profit sharing contributions 975 882 Total defined contribution plan expenses $ 2,733 $ 3,291 The Company has a rabbi trust to fund the obligations of its non-qualified supplemental executive defined contribution plans (supplemental plans). The trust comprises various mutual fund investments selected by the participants of the supplemental plans. In accordance with the accounting guidance for rabbi trust arrangements, the assets of the trust and the obligations of the supplemental plans are reported on the Company’s consolidated balance sheets. The Company elected the fair value option for the mutual fund investment assets so that offsetting changes in the mutual fund values and defined contribution plan obligations would be recorded in earnings in the same period. Therefore, the mutual funds are reported at fair value with any subsequent changes in fair value recorded in the consolidated statements of income. The liabilities related to the supplemental plans increase (i.e., supplemental plan expense is recognized) when the value of the trust assets appreciates and decrease when the value of the trust assets declines (i.e., supplemental plan income is recognized). At March 31, 2020, the balance of the trust assets was $1,619,000, which equaled the balance of the supplemental plan liabilities (see the long-term investments section in Note 3 for further information regarding the Company’s mutual fund assets). |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 10 . EARNINGS PER SHARE Below are the computations of basic and diluted earnings per share for the three months ended March 31, 2020 and 2019: (In thousands, except per share amounts) Three Months Ended March 31 2020 2019 Computation of Basic Earnings per Share Net income attributable to Stepan Company $ 27,545 $ 24,984 Weighted-average number of common shares outstanding 23,023 23,099 Basic earnings per share $ 1.20 $ 1.08 Computation of Diluted Earnings per Share Net income attributable to Stepan Company $ 27,545 $ 24,984 Weighted-average number of shares outstanding 23,023 23,099 Add weighted-average net shares from assumed exercise of options (under treasury stock method) (1) 102 92 Add weighted-average net shares related to unvested stock awards (under treasury stock method) 1 3 Add weighted-average net shares from assumed exercise of SARs (under treasury stock method) (1) 128 108 Add weighted-average contingently issuable net shares related to performance stock awards (under treasury stock method) 31 30 Weighted-average shares applicable to diluted earnings 23,285 23,332 Diluted earnings per share $ 1.18 $ 1.07 (1) |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 11. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Below is the change in the Company’s AOCI balance by component (net of income taxes) for the three months ended March 31, 2020 and 2019: (In thousands) Foreign Currency Translation Adjustments Defined Benefit Pension Plan Adjustments Cash Flow Hedge Adjustments Total Balance at December 31, 2018 $ (108,481 ) $ (33,083 ) $ 81 $ (141,483 ) Other comprehensive income before reclassifications 3,687 — — 3,687 Amounts reclassified from AOCI — 543 (2 ) 541 Remeasurement adjustment related to the Tax Act (1) — (5,325 ) — (5,325 ) Net current-period other comprehensive income 3,687 (4,782 ) (2 ) (1,097 ) Balance at March 31, 2019 $ (104,794 ) $ (37,865 ) $ 79 $ (142,580 ) Balance at December 31, 2019 $ (104,037 ) $ (32,205 ) $ 72 $ (136,170 ) Other comprehensive income before reclassifications (41,182 ) 808 — (40,374 ) Amounts reclassified from AOCI — — (2 ) (2 ) Net current-period other comprehensive income (41,182 ) 808 (2 ) (40,376 ) Balance at March 31, 2020 $ (145,219 ) $ (31,397 ) $ 70 $ (176,546 ) (1) Represents reclassification of the stranded tax effects resulting from the U.S. Tax Cuts and Jobs Act (Tax Act) from accumulated other comprehensive income (loss) to retained earnings in accordance with ASU 2018-02. Information regarding the reclassifications out of AOCI for the three-month periods ended March 31, 2020 and 2019, is displayed below: (In thousands) Amount Reclassified from AOCI (a) AOCI Components Three Months Ended March 31 Affected Line Item in Consolidated Statements of Income 2020 2019 Amortization of defined benefit pension actuarial losses $ (1,071 ) $ (715 ) (b) 263 172 Tax benefit $ (808 ) $ (543 ) Net of tax Gains and losses on cash flow hedges: Foreign exchange contracts 2 2 Cost of sales 2 2 Total before tax — — Tax benefit $ 2 $ 2 Net of tax Total reclassifications for the period $ (806 ) $ (541 ) Net of tax (a) Amounts in parentheses denote expense to statement of income. (b) This component of accumulated other comprehensive income is included in the computation of net periodic benefit cost (see Note 9 for additional details). |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | 1 2 . SEGMENT REPORTING The Company has three reportable segments: Surfactants, Polymers and Specialty Products. Net sales by segment for the three months ended March 31, 2020 and 2019, were as follows: (In thousands) Three Months Ended March 31 2020 2019 Segment Net Sales Surfactants $ 327,071 $ 349,650 Polymers 106,491 120,179 Specialty Products 16,425 19,341 Total $ 449,987 $ 489,170 Segment operating income and reconciliations of segment operating income to income before provision for income taxes for the three months ended March 31, 2020 and 2019, are summarized below: (In thousands) Three Months Ended March 31 2020 2019 Segment Operating Income Surfactants $ 36,156 $ 37,167 Polymers 7,516 12,105 Specialty Products 3,984 3,131 Segment operating income 47,656 52,403 Business restructuring (357 ) (733 ) Unallocated corporate expenses (1) (7,295 ) (21,932 ) Consolidated operating income 40,004 29,738 Interest expense, net (1,230 ) (1,853 ) Other, net (3,262 ) 3,145 Income before provision for income taxes $ 35,512 $ 31,030 (1) Unallocated corporate expenses primarily comprise corporate administrative expenses (e.g., corporate finance, legal, human resources, information systems, deferred compensation and environmental remediation) that are not included in segment operating income and are not used to evaluate segment performance. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contracts with Customers | 1 3 . REVENUE FROM CONTRACTS WITH CUSTOMERS The Company deems a contract with a customer to exist when a purchase order is received from a customer for a specified quantity of product or products and the Company acknowledges receipt of such purchase order. In some instances the Company has entered into manufacturing supply agreements with customers but these agreements typically do not bind a customer to any purchase volume requirements and thus an obligation is not created until the customer submits a purchase order to the Company. The Company’s contracts typically have a single performance obligation that is satisfied at the time a product is shipped and control passes to the customer. For a small portion of the business, performance obligations are deemed satisfied when product is delivered to a customer location. As of March 31, 2020, the Company had $274,000 of contract liabilities and no contract assets. A contract liability would typically arise when an advance or deposit is received from a customer before the Company recognizes revenue. In practice, this is rare as it would require a customer to make a payment prior to a performance obligation being satisfied. When such situations do arise, the Company would maintain a deferred revenue liability until the time a performance obligation has been satisfied. The Company recognized $350,000 of revenue in the current period from pre-existing contract liabilities at December 31, 2019. The tables below provide a geographic disaggregation of net sales for the three months ended March 31, 2020 and 2019. The Company’s business segmentation by geographic region most effectively captures the nature and economic characteristics of the Company’s revenue streams impacted by economic factors. For the Three Months Ended March 31, 2020 (In thousands) Surfactants Polymers Specialty Total Geographic Market North America $ 207,946 $ 61,841 $ 13,494 $ 283,281 Europe 59,660 36,560 2,931 99,151 Latin America 46,510 639 — 47,149 Asia 12,955 7,451 — 20,406 Total $ 327,071 $ 106,491 $ 16,425 $ 449,987 For the Three Months Ended March 31, 2019 (In thousands) Surfactants Polymers Specialty Total Geographic Market North America $ 214,297 $ 71,323 $ 16,025 $ 301,645 Europe 71,478 42,105 3,316 116,899 Latin America 50,812 197 — 51,009 Asia 13,063 6,554 — 19,617 Total $ 349,650 $ 120,179 $ 19,341 $ 489,170 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | 14. DEBT Debt was comprised of the following at March 31, 2020, and December 31, 2019: (In thousands) Maturity Dates March 31, 2020 December 31, 2019 Unsecured private placement notes 3.95% (net of unamortized debt issuance cost of $305 and $316 for 2020 and 2019, respectively) 2021-2027 $ 99,695 $ 99,684 3.86% (net of unamortized debt issuance cost of $278 and $291 for 2020 and 2019, respectively) 2020-2025 85,436 85,423 4.86% (net of unamortized debt issuance cost of $137 and $147 for 2020 and 2019, respectively) 2020-2023 37,006 36,996 Total debt $ 222,137 $ 222,103 Less current maturities 23,571 23,571 Long-term debt $ 198,566 $ 198,532 The Company has a committed $350,000,000 multi-currency revolving credit agreement that expires on January 30, 2023. The Company maintains standby letters of credit under its workers’ compensation insurance agreements and for other purposes, as needed from time to time, which are issued under the revolving credit agreement. As of March 31, 2020, the Company had outstanding letters of credit totaling $4,929,000 and no borrowings under the revolving credit agreement. There was $345,071,000 available under the revolving credit agreement as of March 31, 2020. 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 $298,207,000 and $283,956,000 at March 31, 2020 and December 31, 2019, respectively. |
Other, Net
Other, Net | 3 Months Ended |
Mar. 31, 2020 | |
Other Income And Expenses [Abstract] | |
Other, Net | 15. OTHER, NET Other, net in the consolidated statements of income included the following: (In thousands) Three Months Ended March 31 2020 2019 Foreign exchange gains $ 568 $ 600 Investment income 75 97 Realized and unrealized gains (losses) on investments (3,875 ) 2,404 Net periodic pension benefit (cost) (30 ) 44 Other, net $ (3,262 ) $ 3,145 |
Business Restructuring
Business Restructuring | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring And Related Activities [Abstract] | |
Business Restructuring | 16. BUSINESS RESTRUCTURING In the first quarter of 2019, the Company approved a plan to restructure its Specialty Products office in the Netherlands and eliminate five positions from the site’s supply chain, quality control and research and development areas. This planned reduction in positions was made to better align the number of personnel with current business requirements and reduce costs at the site. As a result, severance and early lease termination expenses of $396,000 and $79,000, respectively, were recognized during the first quarter of 2019. During the third quarter of 2018, the Company approved a plan to shut down Surfactant operations at its German plant site. As of March 31, 2020, an aggregate of $2,392,000 shut down related expense has been recognized at the site. This aggregate expense is comprised of $1,404,000 of asset and spare part write downs recognized in 2018 and $988,000 of cumulative decommissioning costs. The Company recognized $79,000 and $187,000 of decommissioning expenses in the first quarter of 2020 and 2019, respectively. In the fourth quarter of 2017, the Company approved a plan to restructure a portion of its Fieldsboro, New Jersey production facility. As a result, the Company recorded $915,000 of restructuring expense which reflected termination benefits for select plant employees. In the first quarter of 2019, the Company recognized a $251,000 favorable adjustment to the amount of termination benefits initially recorded. In May 2016, the Company announced plans to shut down its Longford Mills, Ontario, Canada (Longford Mills) manufacturing facility, a part of the Surfactant reportable segment, by December 31, 2016. The shutdown plan was implemented to improve the Company’s asset utilization in North America and to reduce the Company’s fixed cost base. Manufacturing operations of the Longford Mills plant ceased by the end of 2016, and production of goods manufactured at the facility was transferred to other Company North American production sites. Decommissioning of the assets is expected to continue throughout 2020. As of March 31, 2020, $7,762,000 of aggregate restructuring expense has been recognized, reflecting $1,644,000 of termination benefits for approximately 30 employees and $6,118,000 for other expenses, principally site decommissioning costs. The Company recognized $278,000 and $322,000 of decommissioning expenses in the first quarter of 2020 and 2019, respectively. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | 17. ACQUISITIONS 2020 On March 13, 2020, the Company acquired certain assets of Logos Technologies LLC's NatSurFact® business, a rhamnolipid-based line of bio-surfactants derived from renewable sources. These bio-surfactants offer synergies in several strategic end use markets including oilfield, agriculture, personal care and household, industrial and institutional. The acquisition was accounted for as an asset acquisition. The purchase price of the acquisition was $2,040,000 and was paid with cash on hand. All assets acquired are included in the Company’s Surfactants segment. The assets acquired were primarily intangibles, including trademarks and know-how ($1,071,000) and patents ($357,000). Additionally, $612,000 of laboratory equipment was acquired. 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 fair value analysis was updated in the first quarter of 2020. The primary assets acquired were intangibles, mostly comprised of goodwill ($3,161,000), product know-how ($3,300,000) and customer relationships ($1,900,000). A small amount of inventory was also acquired. All of the acquired assets are included within the Company’s Surfactants segment. The average amortization period for the identifiable intangibles assets is 20 years. 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, 2019. The acquired business did not impact the Company’s 2019 financial results. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent Accounting Pronouncements | 18. RECENT ACCOUNTING PRONOUNCEMENTS In June 2016, the FASB issued ASU No. 2016-13 , Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments adopted ASU No. 2016-13 in the first quarter of 2020. The adoption of the guidance in ASU No. 2016-13 did not have a material effect on the Company’s financial position, results of operations or cash flows. 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. 2018-15, 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 August 2018, the FASB issued ASU No. 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20) In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) Facilitation of the effect of reference rate reform on financial reporting. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent Accounting Pronouncements | In June 2016, the FASB issued ASU No. 2016-13 , Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments adopted ASU No. 2016-13 in the first quarter of 2020. The adoption of the guidance in ASU No. 2016-13 did not have a material effect on the Company’s financial position, results of operations or cash flows. 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. 2018-15, 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 August 2018, the FASB issued ASU No. 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20) In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) Facilitation of the effect of reference rate reform on financial reporting. |
Reconciliations of Equity (Tabl
Reconciliations of Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Reconciliations of Total Equity | Below are reconciliations of total equity, Company equity and equity attributable to noncontrolling interests for the three months ended March 31, 2020 and 2019: (In thousands, except share and per share amounts) Total Common Stock Additional Paid-in Capital Treasury Stock Accumulated Other Comprehensive Income (Loss) Retained Earnings Noncontrolling Interest (1) Balance, December 31, 2019 $ 892,496 $ 26,493 $ 193,135 $ (114,139 ) $ (136,170 ) $ 922,464 $ 713 Issuance of 2,747 shares of common stock under stock option plan 155 3 152 — — — — Purchase of 89,225 shares of common stock (7,243 ) — — (7,243 ) — — — Stock-based and deferred compensation 1,116 45 2,374 (1,303 ) — — — Net income 27,539 — — — — 27,545 (6 ) Other comprehensive income (40,389 ) — — — (40,376 ) — (13 ) Cash dividends paid: Common stock ($0.28 per share) (6,202 ) — — — — (6,202 ) — Balance, March 31, 2020 $ 867,472 $ 26,541 $ 195,661 $ (122,685 ) $ (176,546 ) $ 943,807 $ 694 (In thousands, except share and per share amounts) Total Common Stock Additional Paid-in Capital Treasury Stock Accumulated Other Comprehensive Income (Loss) Retained Earnings Noncontrolling Interest (1) Balance, December 31, 2018 $ 808,185 $ 26,309 $ 182,881 $ (97,389 ) $ (141,483 ) $ 837,107 $ 760 Issuance of 38,706 shares of common stock under stock option plan 1,890 39 1,851 — — — — Purchase of 900 shares of common stock (77 ) — — (77 ) — — — Stock-based and deferred compensation (1,360 ) 93 1,179 (2,632 ) — — — Net income 24,978 — — — — 24,984 (6 ) Other comprehensive income 4,248 — — — 4,228 — 20 Cash dividends paid: Common stock ($0.25 per share) (5,643 ) — — — — (5,643 ) Other (2) — — — — (5,325 ) 5,325 — Balance, March 31, 2019 $ 832,221 $ 26,441 $ 185,911 $ (100,098 ) $ (142,580 ) $ 861,773 $ 774 (1) (2) Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Values and Related Carrying Values of Debt | At March 31, 2020, and December 31, 2019, 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 $720,000 and $754,000 as of March 31, 2020 and December 31, 2019, respectively): (In thousands) March 31, 2020 December 31, 2019 Fair value $ 219,302 $ 226,712 Carrying value 222,857 222,857 |
Financial Assets and Liabilities, Excluding Cash and Cash Equivalents Measured on a Recurring Basis at Fair Value | The following tables present financial assets and liabilities, excluding cash and cash equivalents, measured on a recurring basis at fair value as of March 31, 2020, and December 31, 2019, and the level within the fair value hierarchy in which the fair value measurements fall: (In thousands) March 2020 Level 1 Level 2 Level 3 Mutual fund assets $ 22,209 $ 22,209 $ — $ — Derivative assets: Foreign currency contracts 36 — 36 — Total assets at fair value $ 22,245 $ 22,209 $ 36 $ — Derivative liabilities: Foreign currency contracts $ 1,188 $ — $ 1,188 $ — (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 $ — |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Compensation Expense Recorded for All Stock Options, Stock Awards and SARs | Compensation expense recorded for all stock options, stock awards and SARs was as follows: (In thousands) Three Months Ended March 31 2020 2019 $ 1,202 $ 2,596 |
Unrecognized Compensation Costs for Stock Options, Stock Awards and SARs | Unrecognized compensation costs for stock options, stock awards and SARs were as follows: (In thousands) March 31, 2020 December 31, 2019 Stock options $ 3,320 $ 1,850 Stock awards 5,819 3,618 SARs 7,209 4,058 |
Share Based Payment Awards Granted in Period | The increases in unrecognized compensation costs for stock options, stock awards and SARs reflected the 2020 grants of: Shares Stock options 81,065 Stock awards (at target) 43,046 SARs 173,754 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Composition of Inventories | The composition of inventories at March 31, 2020, and December 31, 2019, was as follows: (In thousands) March 31, 2020 December 31, 2019 Finished goods $ 133,853 $ 139,785 Raw materials 64,341 63,862 Total inventories $ 198,194 $ 203,647 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Schedule of Lease Cost and Other Information | (In thousands) March 31, 2020 Lease Cost Operating lease cost $ 2,721 Short-term lease cost 1,179 Variable lease cost 298 Total lease cost $ 4,198 Other Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow from operating leases $ 2,747 Right-of-use assets obtained in exchange for new operating lease liabilities 666 |
Schedule of Lease Liability Payments | (In thousands) Undiscounted Cash Flows: 2020 (excluding the three months ended March 31, 2020) $ 7,484 2021 7,632 2022 6,421 2023 5,118 2024 3,060 Subsequent to 2024 16,437 Total Undiscounted Cash Flows $ 46,152 Less: Imputed interest (9,888 ) Present value $ 36,264 Current operating lease liabilities (1) 8,304 Non-current operating lease liabilities 27,960 Total lease liabilities $ 36,264 (1) This item is included in Accrued liabilities line on the Company’s Condensed Consolidated Balance Sheet. |
Schedule of Operating Leases Weighted Average, Remaining Lease Term and Discount Rate | Weighted-average remaining lease term-operating leases 9 years Weighted-average discount rate-operating leases 4.3 % |
Postretirement Benefit Plans (T
Postretirement Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Components of Net Periodic Benefit Cost | Components of Net Periodic Benefit Cost UNITED STATES UNITED KINGDOM (In thousands) Three Months Ended March 31 Three Months Ended March 31 2020 2019 2020 2019 Interest cost $ 1,421 $ 1,661 $ 109 $ 142 Expected return on plan assets (2,437 ) (2,361 ) (134 ) (201 ) Amortization of net actuarial loss 1,052 652 19 63 Net periodic (benefit) cost $ 36 $ (48 ) $ (6 ) $ 4 |
Defined Contribution Plan Expenses for Company's Qualified Contribution Plans | Defined contribution plan expenses for the Company’s qualified contribution plans were as follows: (In thousands) Three Months Ended March 31 2020 2019 Retirement savings contributions $ 1,758 $ 2,409 Profit sharing contributions 975 882 Total defined contribution plan expenses $ 2,733 $ 3,291 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Computations of Basic and Diluted Earnings Per Share | Below are the computations of basic and diluted earnings per share for the three months ended March 31, 2020 and 2019: (In thousands, except per share amounts) Three Months Ended March 31 2020 2019 Computation of Basic Earnings per Share Net income attributable to Stepan Company $ 27,545 $ 24,984 Weighted-average number of common shares outstanding 23,023 23,099 Basic earnings per share $ 1.20 $ 1.08 Computation of Diluted Earnings per Share Net income attributable to Stepan Company $ 27,545 $ 24,984 Weighted-average number of shares outstanding 23,023 23,099 Add weighted-average net shares from assumed exercise of options (under treasury stock method) (1) 102 92 Add weighted-average net shares related to unvested stock awards (under treasury stock method) 1 3 Add weighted-average net shares from assumed exercise of SARs (under treasury stock method) (1) 128 108 Add weighted-average contingently issuable net shares related to performance stock awards (under treasury stock method) 31 30 Weighted-average shares applicable to diluted earnings 23,285 23,332 Diluted earnings per share $ 1.18 $ 1.07 (1) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Summary of Changes in Accumulated Other Comprehensive Income | Below is the change in the Company’s AOCI balance by component (net of income taxes) for the three months ended March 31, 2020 and 2019: (In thousands) Foreign Currency Translation Adjustments Defined Benefit Pension Plan Adjustments Cash Flow Hedge Adjustments Total Balance at December 31, 2018 $ (108,481 ) $ (33,083 ) $ 81 $ (141,483 ) Other comprehensive income before reclassifications 3,687 — — 3,687 Amounts reclassified from AOCI — 543 (2 ) 541 Remeasurement adjustment related to the Tax Act (1) — (5,325 ) — (5,325 ) Net current-period other comprehensive income 3,687 (4,782 ) (2 ) (1,097 ) Balance at March 31, 2019 $ (104,794 ) $ (37,865 ) $ 79 $ (142,580 ) Balance at December 31, 2019 $ (104,037 ) $ (32,205 ) $ 72 $ (136,170 ) Other comprehensive income before reclassifications (41,182 ) 808 — (40,374 ) Amounts reclassified from AOCI — — (2 ) (2 ) Net current-period other comprehensive income (41,182 ) 808 (2 ) (40,376 ) Balance at March 31, 2020 $ (145,219 ) $ (31,397 ) $ 70 $ (176,546 ) (1) Represents reclassification of the stranded tax effects resulting from the U.S. Tax Cuts and Jobs Act (Tax Act) from accumulated other comprehensive income (loss) to retained earnings in accordance with ASU 2018-02. |
Summary of Amounts Reclassifications Out of Accumulated Other Comprehensive Income | Information regarding the reclassifications out of AOCI for the three-month periods ended March 31, 2020 and 2019, is displayed below: (In thousands) Amount Reclassified from AOCI (a) AOCI Components Three Months Ended March 31 Affected Line Item in Consolidated Statements of Income 2020 2019 Amortization of defined benefit pension actuarial losses $ (1,071 ) $ (715 ) (b) 263 172 Tax benefit $ (808 ) $ (543 ) Net of tax Gains and losses on cash flow hedges: Foreign exchange contracts 2 2 Cost of sales 2 2 Total before tax — — Tax benefit $ 2 $ 2 Net of tax Total reclassifications for the period $ (806 ) $ (541 ) Net of tax (a) Amounts in parentheses denote expense to statement of income. (b) This component of accumulated other comprehensive income is included in the computation of net periodic benefit cost (see Note 9 for additional details). |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Operating Segment | The Company has three reportable segments: Surfactants, Polymers and Specialty Products. Net sales by segment for the three months ended March 31, 2020 and 2019, were as follows: (In thousands) Three Months Ended March 31 2020 2019 Segment Net Sales Surfactants $ 327,071 $ 349,650 Polymers 106,491 120,179 Specialty Products 16,425 19,341 Total $ 449,987 $ 489,170 |
Reconciliation of Segment Information to Income Before Provision for Income Taxes | Segment operating income and reconciliations of segment operating income to income before provision for income taxes for the three months ended March 31, 2020 and 2019, are summarized below: (In thousands) Three Months Ended March 31 2020 2019 Segment Operating Income Surfactants $ 36,156 $ 37,167 Polymers 7,516 12,105 Specialty Products 3,984 3,131 Segment operating income 47,656 52,403 Business restructuring (357 ) (733 ) Unallocated corporate expenses (1) (7,295 ) (21,932 ) Consolidated operating income 40,004 29,738 Interest expense, net (1,230 ) (1,853 ) Other, net (3,262 ) 3,145 Income before provision for income taxes $ 35,512 $ 31,030 (1) Unallocated corporate expenses primarily comprise corporate administrative expenses (e.g., corporate finance, legal, human resources, information systems, deferred compensation and environmental remediation) that are not included in segment operating income and are not used to evaluate segment performance. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Geographic Disaggregation of Net Sales | The tables below provide a geographic disaggregation of net sales for the three months ended March 31, 2020 and 2019. The Company’s business segmentation by geographic region most effectively captures the nature and economic characteristics of the Company’s revenue streams impacted by economic factors. For the Three Months Ended March 31, 2020 (In thousands) Surfactants Polymers Specialty Total Geographic Market North America $ 207,946 $ 61,841 $ 13,494 $ 283,281 Europe 59,660 36,560 2,931 99,151 Latin America 46,510 639 — 47,149 Asia 12,955 7,451 — 20,406 Total $ 327,071 $ 106,491 $ 16,425 $ 449,987 For the Three Months Ended March 31, 2019 (In thousands) Surfactants Polymers Specialty Total Geographic Market North America $ 214,297 $ 71,323 $ 16,025 $ 301,645 Europe 71,478 42,105 3,316 116,899 Latin America 50,812 197 — 51,009 Asia 13,063 6,554 — 19,617 Total $ 349,650 $ 120,179 $ 19,341 $ 489,170 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt was comprised of the following at March 31, 2020, and December 31, 2019: (In thousands) Maturity Dates March 31, 2020 December 31, 2019 Unsecured private placement notes 3.95% (net of unamortized debt issuance cost of $305 and $316 for 2020 and 2019, respectively) 2021-2027 $ 99,695 $ 99,684 3.86% (net of unamortized debt issuance cost of $278 and $291 for 2020 and 2019, respectively) 2020-2025 85,436 85,423 4.86% (net of unamortized debt issuance cost of $137 and $147 for 2020 and 2019, respectively) 2020-2023 37,006 36,996 Total debt $ 222,137 $ 222,103 Less current maturities 23,571 23,571 Long-term debt $ 198,566 $ 198,532 |
Other, Net (Tables)
Other, Net (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Other Income And Expenses [Abstract] | |
Other Net in Consolidated Statements of Income | Other, net in the consolidated statements of income included the following: (In thousands) Three Months Ended March 31 2020 2019 Foreign exchange gains $ 568 $ 600 Investment income 75 97 Realized and unrealized gains (losses) on investments (3,875 ) 2,404 Net periodic pension benefit (cost) (30 ) 44 Other, net $ (3,262 ) $ 3,145 |
Reconciliations of Equity - Rec
Reconciliations of Equity - Reconciliations of Total Equity (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | |||
Reconciliations of total equity | ||||
Beginning Balance | $ 892,496 | $ 808,185 | ||
Issuance of common stock under stock option plan | 155 | 1,890 | ||
Purchase of common stock | (7,243) | (77) | ||
Stock-based and deferred compensation | 1,116 | (1,360) | ||
Net income | 27,539 | 24,978 | ||
Other comprehensive income | (40,389) | 4,248 | ||
Cash dividends paid: | ||||
Common stock | (6,202) | (5,643) | ||
Ending Balance | 867,472 | 832,221 | ||
Common Stock [Member] | ||||
Reconciliations of total equity | ||||
Beginning Balance | 26,493 | 26,309 | ||
Issuance of common stock under stock option plan | 3 | 39 | ||
Stock-based and deferred compensation | 45 | 93 | ||
Cash dividends paid: | ||||
Ending Balance | 26,541 | 26,441 | ||
Additional Paid-in Capital [Member] | ||||
Reconciliations of total equity | ||||
Beginning Balance | 193,135 | 182,881 | ||
Issuance of common stock under stock option plan | 152 | 1,851 | ||
Stock-based and deferred compensation | 2,374 | 1,179 | ||
Cash dividends paid: | ||||
Ending Balance | 195,661 | 185,911 | ||
Treasury Stock [Member] | ||||
Reconciliations of total equity | ||||
Beginning Balance | (114,139) | (97,389) | ||
Purchase of common stock | (7,243) | (77) | ||
Stock-based and deferred compensation | (1,303) | (2,632) | ||
Cash dividends paid: | ||||
Ending Balance | (122,685) | (100,098) | ||
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Reconciliations of total equity | ||||
Beginning Balance | (136,170) | (141,483) | ||
Other comprehensive income | (40,376) | 4,228 | ||
Cash dividends paid: | ||||
Ending Balance | (176,546) | (142,580) | ||
Other | [1] | (5,325) | ||
Retained Earnings [Member] | ||||
Reconciliations of total equity | ||||
Beginning Balance | 922,464 | 837,107 | ||
Net income | 27,545 | 24,984 | ||
Cash dividends paid: | ||||
Common stock | (6,202) | (5,643) | ||
Ending Balance | 943,807 | 861,773 | ||
Other | [1] | 5,325 | ||
Noncontrolling Interest [Member] | ||||
Reconciliations of total equity | ||||
Beginning Balance | 713 | [2] | 760 | |
Net income | (6) | [2] | (6) | |
Other comprehensive income | (13) | [2] | 20 | |
Cash dividends paid: | ||||
Ending Balance | $ 694 | [2] | $ 774 | |
[1] | 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 | |||
[2] | Reflects the noncontrolling interest in the Company’s China joint venture. |
Reconciliations of Equity - R_2
Reconciliations of Equity - Reconciliations of Total Equity (Parenthetical) (Detail) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Number of shares of common stock issued under stock option plan | 2,747 | 38,706 |
Number of common stock shares purchased | 89,225 | 900 |
Common stock | $ 0.28 | $ 0.25 |
Common Stock [Member] | ||
Number of shares of common stock issued under stock option plan | 2,747 | 38,706 |
Additional Paid-in Capital [Member] | ||
Number of shares of common stock issued under stock option plan | 2,747 | 38,706 |
Treasury Stock [Member] | ||
Number of common stock shares purchased | 89,225 | 900 |
Retained Earnings [Member] | ||
Common stock | $ 0.28 | $ 0.25 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value Disclosures [Abstract] | ||
Unamortized debt issuance cost | $ 720,000 | $ 754,000 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Values and Related Carrying Values of Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Carrying value | $ 222,857 | $ 222,857 |
Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value | $ 219,302 | $ 226,712 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities, Excluding Cash and Cash Equivalents Measured on a Recurring Basis at Fair Value (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Mutual fund assets | $ 22,209 | $ 28,227 |
Derivative assets: | ||
Foreign currency contracts | 36 | 981 |
Total assets at fair value | 22,245 | 29,208 |
Derivative liabilities: | ||
Foreign currency contracts | 1,188 | 429 |
Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Mutual fund assets | 22,209 | 28,227 |
Derivative assets: | ||
Total assets at fair value | 22,209 | 28,227 |
Level 2 [Member] | ||
Derivative assets: | ||
Foreign currency contracts | 36 | 981 |
Total assets at fair value | 36 | 981 |
Derivative liabilities: | ||
Foreign currency contracts | $ 1,188 | $ 429 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative notional amount | $ 28,447,000 | $ 48,540,368 |
Minimum [Member] | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative foreign currency exchange contracts durations | 1 month | |
Maximum [Member] | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative foreign currency exchange contracts durations | 3 months |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2020 | |
Stock Option and Stock Appreciation Rights (SARs) Granted Prior to 2017 [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Vesting period | 2 years |
Stock Option and Stock Appreciation Rights (SARS) Granted in 2017 [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Vesting period | 3 years |
Percentage of awards vesting in each year | 33.33% |
Stock Option [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Weighted average period for amortization of unrecognized compensation cost | 2 years 2 months 12 days |
Stock Awards [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Weighted average period for amortization of unrecognized compensation cost | 2 years 1 month 6 days |
SARs [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Weighted average period for amortization of unrecognized compensation cost | 2 years 2 months 12 days |
Stock-based Compensation - Comp
Stock-based Compensation - Compensation Expense Recorded for All Stock Options, Stock Awards and SARs (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Compensation expense | $ 1,202 | $ 2,596 |
Stock-based Compensation - Unre
Stock-based Compensation - Unrecognized Compensation Costs for Stock Options, Stock Awards and SARs (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Stock Option [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Unrecognized compensation costs for stock options, stock awards and SARs | $ 3,320 | $ 1,850 |
Stock Awards [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Unrecognized compensation costs for stock options, stock awards and SARs | 5,819 | 3,618 |
SARs [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Unrecognized compensation costs for stock options, stock awards and SARs | $ 7,209 | $ 4,058 |
Stock-based Compensation - Shar
Stock-based Compensation - Share Based Payment Awards Granted in Period (Detail) | 3 Months Ended |
Mar. 31, 2020shares | |
Stock Option [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Stock options granted in period | 81,065 |
Stock Awards (at target) [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Awards granted in period | 43,046 |
SARs [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Awards granted in period | 173,754 |
Inventories - Composition of In
Inventories - Composition of Inventories (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 133,853 | $ 139,785 |
Raw materials | 64,341 | 63,862 |
Total inventories | $ 198,194 | $ 203,647 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($)Country | |
Operating Leased Assets [Line Items] | |
Operating lease, liability | $ 36,264 |
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 | 38.00% |
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 Storage Tanks [Member] | |
Operating Leased Assets [Line Items] | |
Operating lease, liability | $ 731,000 |
Equipment and Storage Tanks [Member] | Minimum [Member] | |
Operating Leased Assets [Line Items] | |
Lessee, operating lease, term of contract | 3 years |
Equipment and Storage Tanks [Member] | Maximum [Member] | |
Operating Leased Assets [Line Items] | |
Lessee, operating lease, term of contract | 5 years |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Cost and Other Information (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Lease Cost | |
Operating lease cost | $ 2,721 |
Short-term lease cost | 1,179 |
Variable lease cost | 298 |
Total lease cost | 4,198 |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flow from operating leases | 2,747 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 666 |
Leases - Schedule of Lease Liab
Leases - Schedule of Lease Liability Payments (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2020 (excluding the three months ended March 31, 2020) | $ 7,484 | |
2021 | 7,632 | |
2022 | 6,421 | |
2023 | 5,118 | |
2024 | 3,060 | |
Subsequent to 2024 | 16,437 | |
Total Undiscounted Cash Flows | 46,152 | |
Less: Imputed interest | (9,888) | |
Present value | 36,264 | |
Current operating lease liabilities | 8,304 | |
Non-current operating lease liabilities | 27,960 | $ 29,654 |
Total lease liabilities | $ 36,264 |
Leases - Schedule of Operating
Leases - Schedule of Operating Leases Weighted Average, Remaining Lease Term and Discount Rate (Detail) | Mar. 31, 2020 |
Leases [Abstract] | |
Weighted-average remaining lease term-operating leases | 9 years |
Weighted-average discount rate-operating leases | 4.30% |
Contingencies - Additional Info
Contingencies - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Site Contingency [Line Items] | |||
Environmental losses accrual | $ 24,900,000 | $ 25,900,000 | |
Cash expenditures related to legal and environmental matters | $ 900,000 | $ 200,000 | |
Contribution for future response costs | 5.00% | ||
Wilmington Site [Member] | |||
Site Contingency [Line Items] | |||
Payment of environmental response costs | $ 2,900,000 | ||
Minimum [Member] | |||
Site Contingency [Line Items] | |||
Environmental and legal losses | 24,900,000 | ||
Maximum [Member] | |||
Site Contingency [Line Items] | |||
Environmental and legal losses | $ 43,000,000 |
Postretirement Benefit Plans -
Postretirement Benefit Plans - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Net periodic (benefit) cost | $ 30 | $ (44) |
United States [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | 1,421 | 1,661 |
Expected return on plan assets | (2,437) | (2,361) |
Amortization of net actuarial loss | 1,052 | 652 |
Net periodic (benefit) cost | 36 | (48) |
United Kingdom [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | 109 | 142 |
Expected return on plan assets | (134) | (201) |
Amortization of net actuarial loss | 19 | 63 |
Net periodic (benefit) cost | $ (6) | $ 4 |
Postretirement Benefit Plans _2
Postretirement Benefit Plans - Defined Benefit Pension Plans - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Defined Contribution Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Balance of trust assets | $ 1,619,000 |
United States [Member] | Unfunded Plan [Member] | Non-qualified Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected contributions or payments to defined benefit plans | 312,000 |
Employer contributions or payments | 143,000 |
U.K Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected contributions or payments to defined benefit plans | 495,000 |
Employer contributions or payments | $ 168,000 |
Postretirement Benefit Plans _3
Postretirement Benefit Plans - Defined Contribution Plan Expenses for Company's Qualified Contribution Plans (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Defined Contribution Plan Disclosure [Line Items] | ||
Total defined contribution plan expenses | $ 2,733 | $ 3,291 |
Retirement Savings Contributions [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Total defined contribution plan expenses | 1,758 | 2,409 |
Profit Sharing Contributions [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Total defined contribution plan expenses | $ 975 | $ 882 |
Earnings Per Share - Computatio
Earnings Per Share - Computations of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Computation of Basic Earnings per Share | |||
Net income attributable to Stepan Company | $ 27,545 | $ 24,984 | |
Weighted-average number of common shares outstanding | 23,023 | 23,099 | |
Basic earnings per share | $ 1.20 | $ 1.08 | |
Computation of Diluted Earnings per Share | |||
Net income attributable to Stepan Company | $ 27,545 | $ 24,984 | |
Weighted-average number of common shares outstanding | 23,023 | 23,099 | |
Add weighted-average net shares related to unvested stock awards (under treasury stock method) | 1 | 3 | |
Weighted-average shares applicable to diluted earnings | 23,285 | 23,332 | |
Diluted earnings per share | $ 1.18 | $ 1.07 | |
Stock Option [Member] | |||
Computation of Diluted Earnings per Share | |||
Add weighted-average net shares from assumed exercise of options (under treasury stock method) | [1] | 102 | 92 |
Stock Appreciation Rights (SARs) [Member] | |||
Computation of Diluted Earnings per Share | |||
Add weighted-average net shares from assumed exercise of options (under treasury stock method) | [1] | 128 | 108 |
Performance Stock Award [Member] | |||
Computation of Diluted Earnings per Share | |||
Add weighted-average net shares from assumed exercise of options (under treasury stock method) | 31 | 30 | |
[1] | Options/SARs to acquire 256,288 and 214,241 shares of Company common stock were excluded from the computations of diluted earnings per share for the three months ended March 31, 2020 and March 31, 2019. Inclusion of the instruments would have had an antidilutive effect on the earnings per share computations. |
Earnings Per Share - Computat_2
Earnings Per Share - Computations of Basic and Diluted Earnings Per Share (Parenthetical) (Detail) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Options and Stock Appreciation Rights (SARs) [Member] | ||
Earnings Per Share Basic [Line Items] | ||
Options/SARs to purchase shares of common stock were excluded from the computations of diluted earnings per share | 256,288 | 214,241 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Summary of Changes in Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | $ 891,783 | |
Other comprehensive income before reclassifications | (40,374) | $ 3,687 |
Amounts reclassified from AOCI | (2) | 541 |
Remeasurement adjustment related to the Tax Act (1) | (5,325) | |
Net current-period other comprehensive income | (40,376) | (1,097) |
Ending Balance | 866,778 | |
Foreign Currency Translation Adjustments [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | (104,037) | (108,481) |
Other comprehensive income before reclassifications | (41,182) | 3,687 |
Net current-period other comprehensive income | (41,182) | 3,687 |
Ending Balance | (145,219) | (104,794) |
Defined Benefit Pension Plan Adjustments [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | (32,205) | (33,083) |
Other comprehensive income before reclassifications | 808 | |
Amounts reclassified from AOCI | 543 | |
Remeasurement adjustment related to the Tax Act (1) | (5,325) | |
Net current-period other comprehensive income | 808 | (4,782) |
Ending Balance | (31,397) | (37,865) |
Cash Flow Hedge Adjustments [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | 72 | 81 |
Amounts reclassified from AOCI | (2) | (2) |
Net current-period other comprehensive income | (2) | (2) |
Ending Balance | 70 | 79 |
AOCI Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | (136,170) | (141,483) |
Ending Balance | $ (176,546) | $ (142,580) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Summary of Amounts Reclassifications Out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Income Before Provision for Income Taxes | $ 35,512 | $ 31,030 | |
Tax benefit | (7,973) | (6,052) | |
Cost of Sales | 370,718 | 404,561 | |
Defined Benefit Pension Plan Adjustments [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Amortization of defined benefit pension actuarial losses | [1],[2] | (1,071) | (715) |
Tax benefit | [1] | 263 | 172 |
Income applicable to common stock | [1] | (808) | (543) |
Cash Flow Hedge Adjustments [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Income Before Provision for Income Taxes | [1] | 2 | 2 |
Income applicable to common stock | [1] | 2 | 2 |
Cash Flow Hedge Adjustments [Member] | Foreign exchange contracts [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Cost of Sales | [1] | 2 | 2 |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Income applicable to common stock | [1] | $ (806) | $ (541) |
[1] | Amounts in parentheses denote expense to statement of income. | ||
[2] | This component of accumulated other comprehensive income is included in the computation of net periodic benefit cost (see Note 9 for additional details). |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2020Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Reporting - Operating S
Segment Reporting - Operating Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 449,987 | $ 489,170 |
Surfactants [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 327,071 | 349,650 |
Polymers [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 106,491 | 120,179 |
Specialty Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ 16,425 | $ 19,341 |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation of Segment Information to Income Before Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Segment Reporting Information [Line Items] | |||
Operating Income | $ 40,004 | $ 29,738 | |
Business restructuring | (357) | (733) | |
Interest expense, net | (1,230) | (1,853) | |
Other, net | (3,262) | 3,145 | |
Income before provision for income taxes | 35,512 | 31,030 | |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Income | 47,656 | 52,403 | |
Operating Segments [Member] | Surfactants [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Income | 36,156 | 37,167 | |
Operating Segments [Member] | Polymers [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Income | 7,516 | 12,105 | |
Operating Segments [Member] | Specialty Products [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Income | 3,984 | 3,131 | |
Segment Reconciling Items [Member] | |||
Segment Reporting Information [Line Items] | |||
Unallocated corporate expenses | [1] | $ (7,295) | $ (21,932) |
[1] | Unallocated corporate expenses primarily comprise corporate administrative expenses (e.g., corporate finance, legal, human resources, information systems, deferred compensation and environmental remediation) that are not included in segment operating income and are not used to evaluate segment performance. |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Additional Information (Detail) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Revenue From Contract With Customer [Abstract] | ||
Contract assets | $ 0 | |
Contract liabilities | $ 274,000 | $ 350,000 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Summary of Geographic Disaggregation of Net Sales (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation Of Revenue [Line Items] | ||
Net sales | $ 449,987 | $ 489,170 |
Surfactants [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 327,071 | 349,650 |
Polymers [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 106,491 | 120,179 |
Specialty Products [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 16,425 | 19,341 |
North America [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 283,281 | 301,645 |
North America [Member] | Surfactants [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 207,946 | 214,297 |
North America [Member] | Polymers [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 61,841 | 71,323 |
North America [Member] | Specialty Products [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 13,494 | 16,025 |
Europe [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 99,151 | 116,899 |
Europe [Member] | Surfactants [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 59,660 | 71,478 |
Europe [Member] | Polymers [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 36,560 | 42,105 |
Europe [Member] | Specialty Products [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 2,931 | 3,316 |
Latin America [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 47,149 | 51,009 |
Latin America [Member] | Surfactants [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 46,510 | 50,812 |
Latin America [Member] | Polymers [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 639 | 197 |
Asia [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 20,406 | 19,617 |
Asia [Member] | Surfactants [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 12,955 | 13,063 |
Asia [Member] | Polymers [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | $ 7,451 | $ 6,554 |
Debt - Debt (Detail)
Debt - Debt (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Total debt | $ 222,137 | $ 222,103 |
Less current maturities | 23,571 | 23,571 |
Long-term debt | 198,566 | 198,532 |
Unsecured private placement 3.95% note [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 99,695 | $ 99,684 |
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 | $ 85,436 | $ 85,423 |
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 | $ 37,006 | $ 36,996 |
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 |
Debt - Debt (Parenthetical) (De
Debt - Debt (Parenthetical) (Detail) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Unamortized debt issuance cost | $ 720,000 | $ 754,000 |
Unsecured private placement 3.95% note [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance cost | 305,000 | 316,000 |
Unsecured private placement 3.86% note [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance cost | 278,000 | 291,000 |
Unsecured private placement 4.86% note [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance cost | $ 137,000 | $ 147,000 |
Debt - Additional Information (
Debt - Additional Information (Detail) - Multi Currency Revolving Credit Agreement [Member] - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Revolving credit agreement | $ 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 | $ 298,207,000 | $ 283,956,000 |
Other, Net - Other Net in Conso
Other, Net - Other Net in Consolidated Statements of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Other Nonoperating Income Expense [Abstract] | ||
Foreign exchange gains | $ 568 | $ 600 |
Investment income | 75 | 97 |
Realized and unrealized gains (losses) on investments | (3,875) | 2,404 |
Net periodic pension benefit (cost) | (30) | 44 |
Other, net | $ (3,262) | $ 3,145 |
Business Restructuring - Additi
Business Restructuring - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020USD ($)Employees | Mar. 31, 2019USD ($)Employees | Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($) | |
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring costs | $ 357,000 | $ 733,000 | ||
Netherlands [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Number positions eliminated | Employees | 5 | |||
Severance costs | $ 396,000 | |||
Germany [Member] | Surfactants [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring costs | $ 2,392,000 | |||
Germany [Member] | Surfactants [Member] | Asset and Spare Part [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring costs | $ 1,404,000 | |||
Fieldsboro, NJ [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Business restructuring | 251,000 | $ 915,000 | ||
Longford Mills [Member] | Surfactants [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Number positions eliminated | Employees | 30 | |||
Business restructuring | $ 7,762,000 | |||
Early Termination of Lease Expenses [Member] | Netherlands [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Business restructuring | 79,000 | |||
Cumulative Decommissioning Costs [Member] | Germany [Member] | Surfactants [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring costs | 988,000 | |||
Decommissioning Costs [Member] | Germany [Member] | Surfactants [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring costs | 79,000 | 187,000 | ||
Decommissioning Costs [Member] | Longford Mills [Member] | Surfactants [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Business restructuring | 278,000 | $ 322,000 | ||
Termination Benefits [Member] | Longford Mills [Member] | Surfactants [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Business restructuring | 1,644,000 | |||
Other Expense [Member] | Longford Mills [Member] | Surfactants [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Business restructuring | $ 6,118,000 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) | Mar. 13, 2020 | Dec. 17, 2019 | Mar. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||||
Goodwill | $ (23,059,000) | $ (26,086,000) | ||
Logos Technologies LLC's Nat Sur Fact Business [Member] | Surfactants [Member] | 2020 Acquisition [Member] | ||||
Business Acquisition [Line Items] | ||||
Paid from cash on hand | $ 2,040,000 | |||
Logos Technologies LLC's Nat Sur Fact Business [Member] | Surfactants [Member] | 2020 Acquisition [Member] | Trademarks and Know-how [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets acquired | 1,071,000 | |||
Logos Technologies LLC's Nat Sur Fact Business [Member] | Surfactants [Member] | 2020 Acquisition [Member] | Patents [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets acquired | 357,000 | |||
Logos Technologies LLC's Nat Sur Fact Business [Member] | Surfactants [Member] | 2020 Acquisition [Member] | Laboratory Equipment [Member] | ||||
Business Acquisition [Line Items] | ||||
Equipment acquired | $ 612,000 | |||
Oilfield Demulsifier Product Line [Member] | Surfactants [Member] | 2019 Acquisition [Member] | ||||
Business Acquisition [Line Items] | ||||
Paid from cash on hand | $ 9,000,000 | |||
Goodwill | $ (3,161,000) | |||
Weighted average amortization periods of identifiable intangibles assets | 20 years | |||
Oilfield Demulsifier Product Line [Member] | Surfactants [Member] | 2019 Acquisition [Member] | Product Know-how [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets identified related to acquisition | $ (3,300,000) | |||
Oilfield Demulsifier Product Line [Member] | Surfactants [Member] | 2019 Acquisition [Member] | Customer Relationships [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets identified related to acquisition | $ (1,900,000) |