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Net Sales

$ 489,170

$ 499,335

^[1]

404,561

408,137

Research, development and technical services

^[1]

84,609

91,198

Operating Expenses:

Selling

13,969

14,890

Administrative

19,306

19,439

13,390

13,614

Deferred compensation expense

7,473

1,614

Total Operating expenses

54,138

49,557

Business restructuring expenses (Note 17)

(733)

(358)

Nonoperating Income (Expense), Total

^[1],[2]

29,738

41,283

Other Income (Expense):

Interest, net

(1,853)

(3,151)

Other, net (Note 16)

3,145

1,160

1,292

(1,991)

^[1],[2]

31,030

39,292

^[1]

6,052

7,347

Net Loss Attributable to Noncontrolling Interests (Note 3)

^[1],[2]

24,978

31,945

^[3]

Net Income Per Common Share Attributable to Stepan Company (Note 11):

^[1],[2]

$ 24,984

$ 31,952

Basic

^[1],[2]

$ 1.08

$ 1.38

Diluted

^[1],[2]

$ 1.07

$ 1.37

Shares Used to Compute Net Income Per Common Share Attributable to Stepan Company (Note 11):

Basic

23,099

23,082

Diluted

23,332

23,389

[1]	The 2018 amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from the last in, first out (LIFO) basis to the first in, first out (FIFO) basis.
[2]	The 2018 amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO.
[3]	The retained earnings and net income amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO.

Condensed Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2019

Mar. 31, 2018

Statement Of Income And Comprehensive Income [Abstract]

Foreign currency translation adjustments (Note 12)

^[1],[2]

$ 24,978

$ 31,945

^[3]

Other comprehensive income :

^[4]

3,707

8,817

Defined benefit pension adjustments, net of tax (Note 12)

543

753

Derivative instrument activity, net of tax (Note 12)

(2)

(3)

Total other comprehensive income

4,248

9,567

Comprehensive income

^[1]

29,226

41,512

Comprehensive income attributable to noncontrolling interests (Note 3)

(14)

(25)

Comprehensive income attributable to Stepan Company

^[1]

$ 29,212

$ 41,487

[1]	The 2018 amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO.
[2]	The 2018 amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from the last in, first out (LIFO) basis to the first in, first out (FIFO) basis.
[3]	The retained earnings and net income amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO.
[4]	Includes foreign currency translation adjustments related to noncontrolling interest.

Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands

Mar. 31, 2019

Dec. 31, 2018

Current Assets:

Cash and cash equivalents

$ 269,459

$ 300,194

Receivables, net

298,932

280,025

Inventories(1) (Note 2)(Note 7)

215,028

231,528

Other current assets

24,717

22,146

Total current assets

^[1]

808,136

833,893

Property, Plant and Equipment:

Cost

1,679,669

1,666,790

Less: Accumulated depreciation

(1,074,309)

(1,057,898)

Property, plant and equipment, net

605,360

608,892

Goodwill, net

22,808

22,954

Other intangible assets, net

13,417

14,244

Long-term investments (Note 4)

25,615

25,082

Operating lease assets

40,332

Other non-current assets

^[1]

10,332

9,549

Total assets

^[1]

1,526,000

1,514,614

Current Liabilities:

Current maturities of long-term debt (Note 15)

32,799

37,058

Accounts payable

175,641

205,954

Accrued liabilities

87,008

95,570

Total current liabilities

295,448

338,582

Deferred income taxes

^[1]

24,158

24,961

Long-term debt, less current maturities (Note 15)

239,063

239,022

Non-current operating lease liabilities

31,361

Other non-current liabilities

103,749

103,864

Commitments and Contingencies (Note 9)

Equity:

Common stock, $1 par value; authorized 60,000,000 shares; Issued 26,440,690 shares in 2019 and 26,308,668 shares in 2018

26,441

26,309

Additional paid-in capital

185,911

182,881

Accumulated other comprehensive loss (Note 12)

^[2]

(142,580)

(141,483)

Retained earnings

^[1],[2]

861,773

837,107

Less: Common treasury stock, at cost, 3,826,739 shares in 2019 and 3,803,043 shares in 2018

(100,098)

(97,389)

Total Stepan Company stockholders’ equity

^[1]

831,447

807,425

Noncontrolling interests (Note 3)

774

760

Total equity

^[1]

832,221

808,185

^[3]

Total liabilities and equity

^[1]

$ 1,526,000

$ 1,514,614

[1]	The 2018 amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO.
[2]	The 2019 amounts for the noted line items include an adjustment related to the Company’s first quarter 2019 adoption of ASU No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.
[3]	The retained earnings and net income amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO.

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2019	Dec. 31, 2018
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	26,440,690	26,308,668
Treasury stock, shares	3,826,739	3,803,043

Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2019

Mar. 31, 2018

Cash Flows From Operating Activities

Adjustments to reconcile net income to net cash provided by operating activities:

^[1],[2]

$ 24,978

$ 31,945

^[3]

Depreciation and amortization

19,403

19,948

Deferred compensation

7,473

1,614

Realized and unrealized gains on long-term investments

(2,404)

(97)

Stock-based compensation

2,596

2,232

Deferred income taxes

^[1]

(1,857)

756

Other non-cash items

1,443

Receivables, net

(17,434)

(24,225)

Accounts payable and accrued liabilities

^[1]

16,231

(10,621)

Other current assets

(3,247)

(684)

(42,279)

(19,518)

Pension liabilities

(392)

(116)

Environmental and legal liabilities

(225)

Deferred revenues

(81)

Net Cash Provided By Operating Activities

4,436

959

Cash Flows From Investing Activities

Expenditures for property, plant and equipment

(25,741)

(27,358)

Business acquisition (Note 18)

(21,475)

Other, net

2,037

1,781

Net Cash Used In Investing Activities

(23,704)

(47,052)

Cash Flows From Financing Activities

Revolving debt and bank overdrafts, net

(4,230)

Dividends paid

(5,643)

(5,092)

Company stock repurchased

(77)

(2,500)

Stock option exercises

1,890

3,155

Other, net

(2,718)

(4,395)

Net Cash Used In Financing Activities

(10,778)

(8,753)

Effect of Exchange Rate Changes on Cash

(689)

533

Net Decrease in Cash and Cash Equivalents

(30,735)

(54,313)

Cash and Cash Equivalents at Beginning of Period

300,194

298,894

Cash and Cash Equivalents at End of Period

269,459

244,581

Supplemental Cash Flow Information

Cash payments of income taxes, net of refunds/payments

3,018

3,345

Cash payments of interest

$ 2,131

$ 2,071

[1]	The 2018 amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO.
[2]	The 2018 amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from the last in, first out (LIFO) basis to the first in, first out (FIFO) basis.
[3]	The retained earnings and net income amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO.

Condensed Consolidated Financial Statements

3 Months Ended

Mar. 31, 2019

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, 2019, and its results of operations and cash flows for the three months ended March 31, 2019 and 2018, 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 2018 Annual Report on Form 10-K.

Change In Method of Accounting for Inventory Valuation

3 Months Ended

Mar. 31, 2019

New Accounting Pronouncements And Changes In Accounting Principles [Abstract]

Change in Method of Accounting for Inventory Valuation

2.	CHANGE IN METHOD OF ACCOUNTING FOR INVENTORY VALUTION

On January 1, 2019, the Company elected to change its method of accounting for U.S. inventories from the LIFO basis to the FIFO basis. Total U.S. inventories accounted for using the LIFO cost flow assumption, prior to the accounting method change, comprised 68 percent of the Company’s total inventories as of December 31, 2018. Non-U.S. inventories have historically been maintained on the FIFO basis. The Company believes that this change to the FIFO method of inventory valuation is preferable as it provides a better matching of costs with the physical flow of goods, more accurately reflects the current market value of inventory presented on the Company’s consolidated balance sheets, standardizes the Company’s inventory valuation methodology and improves comparability with the Company’s industry peers.

In accordance with ASC 250, Accounting Changes and Error Corrections, this change in method of accounting for U.S. inventories has been retrospectively applied to all prior periods presented herein. Prior period financial statements and financial comparables have been adjusted to reflect what results would have been had the Company always used the FIFO method of inventory valuation for U.S. inventories. The cumulative effect on retained earnings for these changes was $23.7 million at December 31, 2018.

The following tables present the prior year financial statement line items that have been affected by the retrospective change in accounting principle:

Income Statement

(In thousands, except per share amounts)	Three Months Ended March 31, 2018
	As originally reported under LIFO		Effect of change			As adjusted under FIFO
Cost of Sales	$	409,765	$	(1,628	)	$	408,137
Gross Profit		89,570		1,628			91,198
Operating Income		39,655		1,628			41,283
Income Before Provision for Income Taxes		37,664		1,628			39,292
Provision for Income Taxes		6,948		399			7,347
Net Income		30,716		1,229			31,945
Net Income Attributable to Stepan Company		30,723		1,229			31,952
Net Income Per Diluted Common Share Attributable to Stepan Company	$	1.31	$	0.06		$	1.37

Balance Sheet

(In thousands)	December 31, 2018
	As originally reported under LIFO		Effect of change			As adjusted under FIFO
Inventories	$	200,165	$	31,363		$	231,528
Other Non-Current Assets		10,964		(1,415	)		9,549
Total Assets		1,484,666		29,948			1,514,614
Deferred Income Taxes	$	18,672	$	6,289		$	24,961
Retained Earnings		813,448		23,659			837,107
Total Liabilities and Equity		1,484,666		29,948			1,514,614

Statement of Cash Flows

(In thousands)	Three Months Ended March 31, 2018
	As originally reported under LIFO			Effect of change			As adjusted under FIFO
Net Income	$	30,716		$	1,229		$	31,945
Deferred Income Taxes		357			399			756
Change in Assets and Liabilities:
Inventories		(8,993	)		(1,628	)		(10,621	)

The following tables present what current year financial statement line items would have been had the Company not changed its method of accounting for U.S. inventories from LIFO to FIFO basis:

Income Statement

(In thousands, except per share amounts)	Three Months Ended March 31, 2019
	As reported under FIFO		Effect of change			As computed under LIFO
Cost of Sales	$	404,561	$	1,500		$	406,061
Gross Profit		84,609		(1,500	)		83,109
Operating Income		29,738		(1,500	)		28,238
Income Before Provision for Income Taxes		31,030		(1,500	)		29,530
Provision for Income Taxes		6,052		(368	)		5,684
Net Income		24,978		(1,132	)		23,846
Net Income Attributable to Stepan Company		24,984		(1,132	)		23,852
Net Income Per Diluted Common Share Attributable to Stepan Company	$	1.07	$	(0.05	)	$	1.02

Balance Sheet

(In thousands)	March 31, 2019
	As reported under FIFO		Effect of change			As computed under LIFO
Inventories	$	215,028	$	(32,863	)	$	182,165
Other Non-Current Assets		10,332		1,483			11,815
Total Assets		1,526,000		(31,380	)		1,494,620
Deferred Income Taxes	$	24,158	$	(6,589	)	$	17,569
Retained Earnings		861,773		(24,791	)		836,982
Total Liabilities and Equity		1,526,000		(31,380	)		1,494,620

Statement of Cash Flows

(In thousands)	Three Months Ended March 31, 2019
	As reported under FIFO			Effect of change			As computed under LIFO
Net Income	$	24,978		$	(1,132	)	$	23,846
Deferred Income Taxes		(1,857	)		(368	)		(2,225	)
Change in Assets and Liabilities:
Inventories		16,231			1,500			17,731

Reconciliations of Equity

3 Months Ended

Mar. 31, 2019

Reconciliations of Equity

3.	RECONCILIATIONS OF EQUITY

Below are reconciliations of total equity, Company equity and equity attributable to noncontrolling interests for the three months ended March 31, 2019 and 2018:

(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 ⁽²⁾	$	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⁽³⁾		—			—		—		—			(5,325	)		5,325			—
Balance, March 31, 2019	$	832,221		$	26,441	$	185,911	$	(100,098	)	$	(142,580	)	$	861,773		$	774

(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, 2017 ⁽²⁾	$	766,218		$	26,071	$	170,408	$	(78,561	)	$	(99,563	)	$	747,045		$	818

Issuance of 77,474 shares of common stock under stock option plan		3,155			77		3,078		—			—			—			—

Purchase of 6,107 shares of common stock		(2,500	)		—		—		(2,500	)		—			—			—

Stock-based and deferred compensation		(1,136	)		120		1,725		(2,981	)		—			—			—

Net income⁽²⁾		31,945			—		—		—			—			31,952			(7	)

Other comprehensive income		9,567			—		—		—			9,535			—			32

Cash dividends paid:
Common stock ($0.23 per share)		(5,092	)		—		—		—			—			(5,092	)

Other ⁽⁴⁾		(198	)		—		—		—			—			(198	)		—
Balance, March 31, 2018	$	801,959		$	26,268	$	175,211	$	(84,042	)	$	(90,028	)	$	773,707		$	843

⁽¹⁾

Reflects the noncontrolling interest in the Company’s China joint venture.

⁽²⁾

The retained earnings and net income amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO.

⁽³⁾

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. See Note 19 for more details.

⁽⁴⁾

Reflects beginning retained earnings adjustment as a result of the Company’s first quarter 2018 adoption of ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory.

Fair Value Measurements

3 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

4.	FAIR VALUE MEASUREMENTS

The following were the financial instruments held by the Company at March 31, 2019, and December 31, 2018, and the methods and assumptions used to estimate the instruments’ fair values:

Cash and cash equivalents

Carrying value approximated fair value because of the short maturity of the instruments.

Derivative assets and liabilities

Derivative assets and liabilities included the foreign currency exchange contracts discussed in Note 5. 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 included the mutual fund assets the Company held to fund a portion of its deferred compensation liabilities and all of its non-qualified supplemental executive defined contribution obligations (see the defined contribution plans section of Note 10). 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, 2019, and December 31, 2018, the fair values and related carrying values of debt, including current maturities, were as follows (the fair value and carrying value amounts are presented without regard to unamortized debt issuance costs of $938,000 and $978,000 as of March 31, 2019 and December 31, 2018, respectively):

(In thousands)

March 31,

2019

December 31,

2018

Fair value

272,625

274,119

Carrying value

272,800

277,058

The following tables present financial assets and liabilities measured on a recurring basis at fair value as of March 31, 2019, and December 31, 2018, and the level within the fair value hierarchy in which the fair value measurements fall:

(In thousands)	March 2019		Level 1		Level 2		Level 3
Mutual fund assets	$	25,615	$	25,615	$	—	$	—
Derivative assets:
Foreign currency contracts		31		—		31		—
Total assets at fair value	$	25,646	$	25,615	$	31	$	—
Derivative liabilities:
Foreign currency contracts	$	61	$	—	$	61	$	—

(In thousands)	December 2018		Level 1		Level 2		Level 3
Mutual fund assets	$	25,082	$	25,082	$	—	$	—
Derivative assets:
Foreign currency contracts		185		—		185		—
Total assets at fair value	$	25,267	$	25,082	$	185	$	—
Derivative liabilities:
Foreign currency contracts	$	10	$	—	$	10	$	—

Derivative Instruments And Hedging Activities Disclosure [Abstract]

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Derivative Instruments

3 Months Ended

Mar. 31, 2019

Derivative Instruments

5.	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, 2019, and December 31, 2018, the Company had open forward foreign currency exchange contracts, all with durations of one to three months, to buy or sell foreign currencies with U.S. dollar equivalent amounts of $24,164,006 and $28,870,081, respectively.

The fair values of the derivative instruments held by the Company on March 31, 2019, and December 31, 2018, are disclosed in Note 4. Derivative instrument gains and losses for the three-month periods ended March 31, 2019 and 2018, were immaterial. For amounts reclassified out of accumulated other comprehensive income (loss) (AOCI) into earnings for the three-month periods ended March 31, 2019 and 2018, see Note 12.

Stock-based Compensation

3 Months Ended

Mar. 31, 2019

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-based Compensation

6.	STOCK-BASED COMPENSATION

On March 31, 2019, 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 graded vesting feature, with one-third of the awards vesting each year. The Company has elected the straight-line method of expense attribution for the stock options and SARs with the graded vesting feature.

Compensation expense recorded for all stock options, stock awards and SARs was as follows:

The quarter-over-quarter increase in stock-based compensation expense was primarily attributable to cash-settled SARs. The quarterly increase in cash-settled SARs compensation expense reflects a larger rise in the market value of Company stock during the first quarter of 2019 versus the first quarter of 2018. This increase was partially offset by a quarter-over-quarter decrease in stock-based compensation expense related to performance stock awards.

Unrecognized compensation costs for stock options, stock awards and SARs were as follows:

(In thousands)	March 31, 2019		December 31, 2018
Stock options	$	2,935	$	1,655
Stock awards		5,712		3,180
SARs		6,260		3,566

The increases in unrecognized compensation costs for stock options, stock awards and SARs reflected the 2019 grants of:

	Shares
Stock options		67,628
Stock awards (at target)		41,528
SARs		146,613

The unrecognized compensation costs at March 31, 2019, are expected to be recognized over weighted-average periods of 2.2 years for stock options, stock awards and SARs.

Inventories

3 Months Ended

Mar. 31, 2019

Inventory Disclosure [Abstract]

Commitments And Contingencies Disclosure [Abstract]

7.	INVENTORIES

The composition of inventories at March 31, 2019, and December 31, 2018, was as follows:

(In thousands)	March 31, 2019		December 31, 2018 As Adjusted
Finished goods	$	154,758	$	163,617
Raw materials		60,270		67,911
Total inventories	$	215,028	$	231,528

Effective January 1, 2019, the Company elected to change its method of accounting for U.S. inventories from the LIFO basis to the FIFO basis. Non-U.S. inventories have historically been maintained on the FIFO basis. Prior period financial statements have been adjusted to reflect what results would have been had the Company always used the FIFO method of inventory valuation for U.S. inventories. See Note 2 for additional details.

Leases

3 Months Ended

Mar. 31, 2019

Leases [Abstract]

Leases

LEASES

The Company adopted ASU No. 2016-02, Leases (Topic 842), on January 1, 2019. This new accounting standard requires a dual approach for lessee accounting whereby a lessee accounts for lease arrangements as either finance leases or operating leases. The lease classification affects the pattern of expense recognition in the income statement. The most significant impact of adopting ASU No. 2016-02, Leases (Topic 842) is that a lessee is now required to recognize a “right-of-use” (ROU) asset and corresponding lease liability for operating lease agreements. ROU assets represent a right to use an underlying asset for the lease term and lease liabilities represent an obligation to make lease payments arising from the lease. Operating leases are expensed on a straight-line basis over the life of the lease beginning on the date the Company takes possession of the property.

As the Company elected to apply the standard at adoption as allowed under ASU No. 2018-11, the Company did not retrospectively adjust prior periods presented. The Company elected the practical expedient to not separate non-lease components from lease components for all asset classes and the practical expedient which permits a Company to not reassess prior conclusions about lease identification, lease classifications and initial direct costs. The Company did not elect the use-of-hindsight or the practical expedient pertaining to land easements, the latter not being applicable to the Company. In addition, the Company made an accounting policy election to keep leases with an initial term of 12 months or less off the balance sheet. Upon adoption of ASC 842, the Company recognized $42.4 million of ROU assets and related operating lease liabilities on its balance sheet. There was no cumulative catch-up adjustment made to beginning retained earnings.

Significant judgments used by the Company to determine whether a contract is or contains a lease include: (i) determining whether any explicitly or implicitly identified assets have been identified in the contract and (ii) determining whether the Company obtains substantially all of the economic benefits from the use of the underlying asset and directs how and for what purpose the asset is used during the term of the contract.

The Company’s operating leases are primarily comprised of railcars, real estate, storage tanks, autos, trailers and manufacturing/office equipment. Railcars and real estate comprise approximately 49 percent and 36 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. The Company is not currently party to any leases that have not commenced but that have created significant rights and obligations for the Company.

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 indexes at the inception of a lease are reflected in the Company’s lease liability balances whereas variability based on usage is typically excluded from lease liability amounts. Some of the Company’s leases include options to extend the lease term but these are typically not recognized as part of the ROU asset or lease liability at inception unless it is reasonably certain the renewal option will be exercised. Determining whether a renewal option is reasonably certain to be exercised requires judgment based on the existing facts and circumstances as well as expectations about future business needs. Renewal options are typically re-assessed within one year or less prior to lease termination when the Company is able to more accurately forecast future business needs. Some of the Company’s lease contracts include options to terminate leases early but these are typically not considered unless it is reasonably certain the early termination option will be exercised. The Company’s leases do not typically carry any residual value guarantees and typically payment is not considered probable when such guarantees are included in the contract.

Initial implementation of ASU No. 2016-02, Leases (Topic 842) did not impact compliance with any of the Company’s debt-covenants nor is it expected to in the future. The majority of the Company’s debt agreements contain language that excludes the impact of any new GAAP accounting change.

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 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 four countries identified above represents approximately 93 percent of the Company’s consolidated ROU asset balance.

(In thousands)	March 31, 2019
Lease Cost
Operating lease cost	$	2,688
Short-term lease cost		970
Variable lease cost		348
Total lease cost	$	4,006
Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flow from operating leases	$	2,696
Right-of-use assets obtained in exchange for new operating lease liabilities		294
Weighted-average remaining lease term-operating leases	9 Years
Weighted-average discount rate-operating leases		3.9	%



(In thousands)
Undiscounted Cash Flows:
2019 (excluding the three months ended March 31, 2019)	$	7,870
2020		9,192
2021		6,427
2022		5,317
2023		4,145
Subsequent to 2023		17,231
Total Undiscounted Cash Flows	$	50,182
Less: Imputed interest		(9,846	)
Present value	$	40,336
Current operating lease liabilities ⁽¹⁾		8,975
Non-current operating lease liabilities		31,361
Total lease liabilities	$	40,336

(1)

This item is included in Accrued liabilities line on the Company’s Condensed Consolidated Balance Sheet.

ASC 840 Disclosure

As required in transition, the table below summarizes the Company’s future minimum lease payments at December 31, 2018 under ASC 840.

(In thousands)
Year
2019	$	9,740
2020		8,294
2021		6,027
2022		5,242
2023		4,101
Subsequent to 2023		16,593
Total minimum future rental payments	$	49,997

Contingencies

3 Months Ended

Mar. 31, 2019

Contingencies

9.	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 matters. Some of these proceedings may result in fines, penalties, judgments or costs being assessed against the Company at some future time. The Company’s operations are subject to extensive local, state and federal regulations, including the U.S. Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA) and the Superfund amendments of 1986 (Superfund) as well as comparable regulations applicable to the Company’s foreign locations. Over the years, the Company has received requests for information related to or has been named by the government authorities as a potentially responsible party (PRP) at a number of sites where cleanup costs have been or may be incurred under CERCLA and similar state statutes. In addition, damages are being claimed against the Company in general liability actions for alleged personal injury or property damage in the case of some disposal and plant sites. The Company believes that it has made adequate provisions for the costs it is likely to incur with respect to these sites.

As of March 31, 2019, the Company estimated a range of possible environmental and legal losses of $23.4 million to $44.7 million. Within the range of possible environmental and legal losses, currently management has concluded that there are no amounts within the ranges that are more likely to occur than any other amounts in the ranges and, thus, has accrued at the lower end of the ranges; that accrual totaled $23.4 million at both March 31, 2019 and December 31, 2018. Cash expenditures related to legal and environmental matters approximated $0.2 million for each of the three-month periods ended March 31, 2019 and 2018.

For certain sites, the Company has responded to information requests made by federal, state or local government agencies but has received no response confirming or denying the Company’s stated positions. As such, estimates of the total costs, or range of possible costs, of remediation, if any, or the Company’s share of such costs, if any, cannot be determined with respect to these sites. Consequently, the Company is unable to predict the effect thereof on the Company’s financial position, cash flows and results of operations. Based upon the Company’s present knowledge with respect to its involvement at these sites, the possibility of other viable entities’ responsibilities for cleanup, and the extended period over which any costs would be incurred, management believes that the Company has no 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 material contingencies at March 31, 2019:

Maywood, New Jersey Site

The Company’s property in Maywood, New Jersey and property formerly owned by the Company adjacent to its current site and other nearby properties (Maywood site) were listed on the National Priorities List in September 1993 pursuant to the provisions of CERCLA because of certain alleged chemical contamination. Pursuant to an Administrative Order on Consent entered into between the U.S. Environmental Protection Agency (USEPA) and the Company for property formerly owned by the Company, and the issuance of an order by USEPA to the Company for property currently owned by the Company, the Company has completed various Remedial Investigation Feasibility Studies (RI/FS), and on September 24, 2014, the USEPA issued its Record of Decision (ROD) for chemically-contaminated soil. USEPA has not yet issued a ROD for chemically-contaminated groundwater for the Maywood site. Based on the most current information available, the Company believes its recorded liability is reasonable having considered the range of estimated cost 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 USEPA, as the design of the remedial action progresses, if a groundwater ROD is issued or if other PRPs are identified. The ultimate amount for which the Company is liable could differ from the Company’s current recorded liability.

In April 2015, the Company entered into an Administrative Settlement Agreement and Administrative Order on Consent with USEPA which requires payment of certain costs and performance of certain investigative and design work for chemically-contaminated soil. Based on the Company’s review and analysis of this order, no changes to the Company’s recorded liability for claims associated with soil remediation of chemical contamination were required.

In addition, under the terms of a settlement agreement reached on November 12, 2004, the U.S. Department of Justice and the Company agreed to fulfill the terms of a Cooperative Agreement reached in 1985 under which the United States will take title to and responsibility for radioactive waste removal at the Maywood site, including past and future remediation costs incurred by the United States. As such, the Company recorded no liability related to this settlement agreement.

D’Imperio Property Site

During the mid-1970’s, Jerome Lightman and the Lightman Drum Company disposed of hazardous substances at several sites in New Jersey. The Company was named as a PRP in a lawsuit in the U.S. District Court for the District of New Jersey that involved the D’Imperio Property Site located in New Jersey. In 2016, the PRPs were provided with updated remediation cost estimates, which were considered in the Company’s determination of its range of estimated possible losses and liability balance. The changes in range of possible losses and liability balance were immaterial. Remediation work is continuing at this site. Based on current information, the Company believes that its recorded liability 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 from the current estimates.

Wilmington Site

The Company is currently contractually obligated to contribute to the response costs associated with the Company’s formerly-owned site in Wilmington, Massachusetts. Remediation at this site is being managed by its current owner, to whom the Company sold the property in 1980. Under the agreement, once total site remediation costs exceed certain levels, the Company is obligated to contribute up to five percent of future response costs associated with this site with no limitation on the ultimate amount of contributions. The Company has paid the current owner $2.7 million for the Company’s portion of environmental response costs through March 31, 2019. The Company has recorded a liability for its portion of the estimated remediation costs for the site. Depending on the ultimate cost of the remediation at this site, the amount for which the Company is liable could differ from the current estimates.

The Company and other prior owners also entered into an agreement in April 2004 waiving certain statute of limitations defenses for claims which may be filed by the Town of Wilmington, Massachusetts, in connection with this site. While the Company has denied any liability for any such claims, the Company agreed to this waiver while the parties continue to discuss the resolution of any potential claim which may be filed.

Other U.S. Sites

Through the regular environmental monitoring of its plant production sites, the Company discovered levels of chemical contamination that were above thresholds allowed by law at two of its U.S plants. The Company voluntarily reported its results to the applicable state environmental agencies. As a result, the Company is required to perform self-remediation of the affected areas. In the fourth quarter of 2016, the Company recognized a charge for the estimated cost of remediating the sites. Based on current information, the Company believes that its recorded liability for the remediation of the affected areas is appropriate based on estimate of expected costs. However, actual costs could differ from current estimates.

Postretirement Benefit Plans

3 Months Ended

Mar. 31, 2019

Compensation And Retirement Disclosure [Abstract]

Postretirement Benefit Plans

10.	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
	2019			2018			2019			2018
Interest cost	$	1,661		$	1,539		$	142		$	148
Expected return on plan assets		(2,361	)		(2,321	)		(201	)		(231	)
Amortization of net actuarial loss		652			937			63			57
Net periodic benefit cost	$	(48	)	$	155		$	4		$	(26	)

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 the funded U.S. qualified defined benefit plans. Approximately $312,000 is expected to be paid related to the unfunded non-qualified plans in 2019. Of such amount, $143,000 had been paid related to the non-qualified plans as of March 31, 2019.

U.K. Plan

The Company’s U.K. subsidiary expects to contribute approximately $476,000 to its defined benefit pension plan in 2019. Of such amount, $173,000 had been contributed to the plan as of March 31, 2019.

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, 2019 and 2018, 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 2018, profit sharing contributions for U.S. employees, who received the majority of profit sharing contributions, were made partly in cash paid to the 401(k) plan and partly in Company common stock. In 2019, profit sharing contributions were made in Company common stock. 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
	2019		2018
Retirement savings contributions	$	2,409	$	1,757
Profit sharing contributions		882		942
Total defined contribution plan expenses	$	3,291	$	2,699

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, 2019, the balance of the trust assets was $1,677,000, which equaled the balance of the supplemental plan liabilities (see the long-term investments section in Note 4 for further information regarding the Company’s mutual fund assets).

Earnings Per Share

3 Months Ended

Mar. 31, 2019

Earnings Per Share [Abstract]

Earnings Per Share

11.	EARNINGS PER SHARE

Below are the computations of basic and diluted earnings per share for the three months ended March 31, 2019 and 2018:

(In thousands, except per share amounts)	Three Months Ended March 31
	2019		2018 As Adjusted
Computation of Basic Earnings per Share
Net income attributable to Stepan Company ⁽¹⁾	$	24,984	$	31,952
Weighted-average number of common shares outstanding		23,099		23,082
Basic earnings per share ⁽¹⁾	$	1.08	$	1.38

Computation of Diluted Earnings per Share
Net income attributable to Stepan Company ⁽¹⁾	$	24,984	$	31,952
Weighted-average number of shares outstanding		23,099		23,082
Add weighted-average net shares from assumed exercise of options (under treasury stock method) ⁽²⁾		92		119
Add weighted-average net shares related to unvested stock awards (under treasury stock method)		3		2
Add weighted-average net shares from assumed exercise of SARs (under treasury stock method) ⁽²⁾		108		122
Add weighted-average contingently issuable net shares related to performance stock awards (under treasury stock method)		30		64
Weighted-average shares applicable to diluted earnings		23,332		23,389
Diluted earnings per share⁽¹⁾	$	1.07	$	1.37

⁽¹⁾

The 2018 amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO.

⁽²⁾ Options/SARs to acquire 214,241 and 2,807 shares of Company common stock were excluded from the computations of diluted earnings per share for the three months ended March 31, 2019 and March 31, 2018, because the effect of including the instruments would have been antidilutive.

Accumulated Other Comprehensive Income (Loss)

3 Months Ended

Mar. 31, 2019

Accumulated Other Comprehensive Income (Loss)

12.	ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

In conjunction with the adoption of ASU 2018-02, the Company reclassified $5,325,000 of other comprehensive loss, associated with post retirement plans, from accumulated other comprehensive loss to retained earnings effective January 1, 2019. Below is the change in the Company’s AOCI balance by component (net of income taxes) for the three months ended March 31, 2019 and 2018:

(In thousands)	Foreign Currency Translation Adjustments			Defined Benefit Pension Plan Adjustments			Cash Flow Hedge Adjustments			Total
Balance at December 31, 2017	$	(70,561	)	$	(29,093	)	$	91		$	(99,563	)
Other comprehensive income before reclassifications		8,785			—			—			8,785
Amounts reclassified from AOCI		—			753			(3	)		750
Net current-period other comprehensive income		8,785			753			(3	)		9,535
Balance at March 31, 2018	$	(61,776	)	$	(28,340	)	$	88		$	(90,028	)

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
Reclassification 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	)

⁽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. See Note 19 for more details.

Information regarding the reclassifications out of AOCI for the three month periods ended March 31, 2019 and 2018, 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
	2019			2018
Amortization of defined benefit pension actuarial losses	$	(715	)	$	(994	)	(b)
		172			241		Tax benefit
	$	(543	)	$	(753	)	Net of tax
Gains and losses on cash flow hedges:
Foreign exchange contracts		2			3		Cost of sales
		2			3		Total before tax
		—			—		Tax benefit
	$	2		$	3		Net of tax
Total reclassifications for the period	$	(541	)	$	(750	)	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 10 for additional details).

Segment Reporting

3 Months Ended

Mar. 31, 2019

Segment Reporting [Abstract]

Segment Reporting

13.	SEGMENT REPORTING

The Company has three reportable segments: Surfactants, Polymers and Specialty Products. Net sales by segment for the three months ended March 31, 2019 and 2018, were as follows:

(In thousands)	Three Months Ended March 31
	2019		2018
Segment Net Sales
Surfactants	$	349,650	$	358,940
Polymers		120,179		121,933
Specialty Products		19,341		18,462
Total	$	489,170	$	499,335

Segment operating income and reconciliations of segment operating income to consolidated income before income taxes for the three months ended March 31, 2019 and 2018, are summarized below:

(In thousands)	Three Months Ended March 31
	2019			2018 As Adjusted
Segment Operating Income
Surfactants ⁽¹⁾	$	37,167		$	41,468
Polymers ⁽¹⁾		12,105			17,305
Specialty Products		3,131			(350	)
Segment operating income⁽¹⁾		52,403			58,423
Business restructuring		(733	)		(358	)
Unallocated corporate expenses ⁽²⁾		(21,932	)		(16,782	)
Consolidated operating income ⁽¹⁾		29,738			41,283
Interest expense, net		(1,853	)		(3,151	)
Other, net		3,145			1,160
Consolidated income before income taxes⁽¹⁾	$	31,030		$	39,292

⁽¹⁾ The 2018 amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO.

⁽²⁾

Unallocated corporate expenses primarily comprise corporate administrative expenses (e.g., corporate finance, legal, human resources, information systems, deferred compensation and environmental remediation) that are not included in segment operating income and not used to evaluate segment performance.

Revenue from Contracts with Customers

3 Months Ended

Mar. 31, 2019

Revenue From Contract With Customer [Abstract]

Revenue from Contracts with Customers

14.	REVENUE FROM CONTRACTS WITH CUSTOMERS

In the majority of instances the Company deems a contract with a customer to exist when a purchase order is received from a customer for a specified quantity of product or products and the Company acknowledges receipt of such purchase order. In some instances the Company has entered into manufacturing supply agreements with customers but these agreements typically do not bind a customer to any purchase volume requirements and thus an obligation is not created until the customer submits a purchase order to the Company. The Company’s contracts typically have a single performance obligation that is satisfied at the time 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, 2019, the Company did not have any contract assets or contract liabilities. 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 extremely rare as it would require a customer to make a payment prior to a performance obligation being satisfied. If such a situation did arise the Company would maintain a deferred revenue liability until the time a performance obligation has been satisfied. The Company did not recognize any revenue in the current period from any pre-existing contract liability balance.

The tables below provides a geographic disaggregation of net sales for the three months ended March 31, 2019 and 2018. 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, 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

	For the Three Months Ended March 31, 2018
(In thousands)
	Surfactants		Polymers		Specialty		Total
Geographic Market
North America	$	220,405	$	73,474	$	14,814	$	308,693
Europe		78,371		41,784		3,648		123,803
Latin America		41,688		827		—		42,515
Asia		18,476		5,848		—		24,324
Total	$	358,940	$	121,933	$	18,462	$	499,335

Debt

3 Months Ended

Mar. 31, 2019

Debt Disclosure [Abstract]

Debt

15.

DEBT

At March 31, 2019, and December 31, 2018, debt comprised the following:

(In thousands)	Maturity Dates	March 31, 2019		December 31, 2018
Unsecured private placement notes
3.95% (net of unamortized debt issuance cost of $349 and $360 for 2019 and 2018, respectively)	2021-2027	$	99,651	$	99,640
3.86% (net of unamortized debt issuance cost of $333 and $347 for 2019 and 2018, respectively)	2019-2025		99,667		99,653
4.86% (net of unamortized debt issuance cost of $176 and $186 for 2019 and 2018, respectively)	2019-2023		46,253		46,243
5.88% (net of unamortized debt issuance cost of $80 and $85 for 2019 and 2018, respectively)	2019-2022		22,777		22,772
Debt of foreign subsidiaries
Unsecured bank debt, foreign currency	2019		3,514		7,772
Total debt		$	271,862	$	276,080
Less current maturities			32,799		37,058
Long-term debt		$	239,063	$	239,022

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, 2019, the Company had outstanding letters of credit totaling $5,271,000 and no outstanding debt under this agreement. There was $344,729,000 available under the revolving credit agreement as of March 31, 2019.

The Company’s loan agreements contain provisions which, among others, require maintenance of certain financial ratios and place limitations on additional debt, investments and payment of dividends. Based on the loan agreement provisions that place limitations on dividend payments, unrestricted retained earnings (i.e., retained earnings available for dividend distribution) were $235,249,000 and $214,101,000 at March 31, 2019 and December 31, 2018, respectively.

Other, Net

3 Months Ended

Mar. 31, 2019

Other Income And Expenses [Abstract]

Other, Net

16.	OTHER, NET

Other, net in the consolidated statements of income included the following:

(In thousands)	Three Months Ended March 31
	2019		2018
Foreign exchange gains	$	600	$	1,053
Investment income		97		139
Realized and unrealized gains on investments		2,404		97
Net periodic benefit cost		44		(129	)
Other, net	$	3,145	$	1,160

Business Restructuring

3 Months Ended

Mar. 31, 2019

Restructuring And Related Activities [Abstract]

Business Restructuring

17.	BUSINESS RESTRUCTURING

In the first quarter of 2019, the Company approved a plan to close 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, 2019, an aggregate of $1,591,000 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 $187,000 of decommissioning costs recognized in the first quarter of 2019. Decommissioning costs associated with the shutdown are expected to continue throughout the remainder of 2019.

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 2019. As of March 31, 2019, $6,346,000 of aggregate restructuring expense has been recognized, reflecting $1,594,000 of termination benefits for approximately 30 employees and $4,752,000 for other expenses, principally site decommissioning costs.

Below is a reconciliation of the December 31, 2018 and the March 31, 2019 restructuring liabilities:

(In thousands)	Termination Benefits			Other Expense			Total
Restructuring liability at December 31, 2018	$	260		$	83		$	343
Expense recognized		—			322			322
Amounts paid		(79	)		(322	)		(401	)
Foreign currency translation		6			2			8
Restructuring liability at March 31, 2019	$	187		$	85		$	272

Acquisition

3 Months Ended

Mar. 31, 2019

Business Combinations [Abstract]

Acquisition

18.	ACQUISITION

2018 Acquisition

On March 26, 2018, the Company through a subsidiary in Mexico closed on a previously announced agreement with BASF Mexicana, S.A.DE C.V. (BASF) to acquire their surfactants production facility in Ecatepec, Mexico and a portion of their associated surfactants business. The facility is located close to Mexico City and has over 50,000 metric tons of capacity, 124,000 square footage of warehouse space, a large laboratory and office space. The acquired assets and business are included in the Company’s Surfactants segment. The purchase price of the acquisition was $22,852,000 and was paid with cash on hand. The primary assets acquired were land, buildings, machinery and equipment and inventory. The acquisition was accounted for as a business combination, and, accordingly, the assets acquired were measured and recorded at their estimated fair values. No intangible assets were identified as part of the acquisition. The following table summarizes the assets acquired as a result of the acquisition:

(In thousands)
Assets:
Property, plant and equipment	$	14,464
Inventory		5,687
Value-added tax receivables		2,701
Total assets acquired	$	22,852

The acquired business had minimal impact on the Company’s 2018 financial results.

Recent Accounting Pronouncements

3 Months Ended

Mar. 31, 2019

Accounting Changes And Error Corrections [Abstract]

Recent Accounting Pronouncements

19.	RECENT ACCOUNTING PRONOUNCEMENTS

In February 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-2, Leases (Topic 842). This guidance requires a dual approach for lessee accounting whereby a lessee will account for lease arrangements with terms greater than 12 months as either finance leases or operating leases. Both finance leases and operating leases are recognized on the lessee’s balance sheet as right-of-use assets and corresponding lease liabilities, with differing methodologies for income statement recognition. In addition, the ASU requires expanded qualitative and quantitative disclosures about the Company’s lease arrangements. This guidance is effective for public business entities for fiscal years, and interim periods within those years, beginning after December 15, 2018. The most significant impact of ASU No. 2016-2, Leases (Topic 842) is that a lessee is required to recognize a “right-of-use” asset and corresponding lease liability for operating leases agreements. The Company adopted the new lease standard on January 1, 2019 by recognizing lease assets and the corresponding lease liabilities. The adoption of these guidelines did not have an impact on retained earnings, the Company’s results of operations or cash flows, but it did have a material impact on specific balance sheet line items. See Note 8 – Leases for more details.

In January 2017, the FASB issued ASU No. 2017-4, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which eliminates Step 2 from the goodwill impairment test. When an indication of impairment was identified after performing the first step of the goodwill impairment test, Step 2 required that an entity determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) using the same procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Under the amendments in ASU No. 2017-4, an entity would perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying value. An entity would recognize an impairment charge for the amount by which the carrying value exceeds the reporting unit’s fair value. In addition, an entity must consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The Company is required to adopt the amendments in ASU No. 2017-4 for its annual, or any interim, goodwill impairment tests in fiscal years beginning after December 15, 2019. It is not expected that the adoption of the guidance in ASU No. 2017-4 will have a material effect on the Company’s financial position, results of operations or cash flows.

In February 2018, the FASB issued ASU No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which permits a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act. Consequently, the update eliminates the stranded tax effects resulting from the Tax Act and should improve the usefulness of information reported to financial statement users. However, because the amendments only relate to the reclassification of the income tax effects of the Tax Act, the underlying guidance that requires that the effects of the change in tax laws or rates be included in income from continuing operations is not affected. The amendments in this update also require certain disclosures about stranded tax effects. This update is effective for public business entities for fiscal years, and interim periods within those years, beginning after December 15, 2018. The Company adopted this guidance and recorded a $5,325,000 adjustment to the opening balance of retained earnings with the corresponding offset to AOCI. See Note 12 – Accumulated Other Comprehensive Income (Loss) for more details.

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. This update modifies some disclosure requirements related to fair value measurements used for different levels of instruments in fair value hierarchy (Level 1, Level 2 and Level 3). The amendments in the update are effective for fiscal years, and interim periods within fiscal years, beginning after December 15, 2019. The adoption of this update is not expected have an effect on the Company’s financial position, results of operations and cash flows but may impact the disclosures made for fair value measurements used by the Company.

In August 2018, the FASB issued ASU No. 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20). This update removes some disclosures that are no longer considered cost beneficial and adds some disclosures about defined benefit plans that have been identified as relevant. The amendments in this update are effective for fiscal years ending after December 15, 2020. The adoption of this update is not expected to have an effect on the Company’s financial position, results of operations and cash flows but will impact the disclosures made for the Company’s defined benefit retirement plans.

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. This update aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This update requires the entity to determine which implementation costs to capitalize as an asset related to the service contact and which costs to expense over the term of the hosting contract. The amendments in this update are effective for fiscal years beginning after December 15, 2019. The Company is assessing the impact that adoption of ASU No. 2018-15 will have on its financial position, results of operations and cash flows.

Recent Accounting Pronouncements (Policies)

3 Months Ended

Mar. 31, 2019

Accounting Changes And Error Corrections [Abstract]

Recent Accounting Pronouncements

Change In Method of Accounting for Inventory Valuation (Tables)

3 Months Ended

Mar. 31, 2019

Change In Accounting Estimate [Abstract]

Summary of Prior Year Financial Statement Line Items that have Been Affected by Retrospective Change in Accounting Principle

The following tables present the prior year financial statement line items that have been affected by the retrospective change in accounting principle:

Income Statement

(In thousands, except per share amounts)	Three Months Ended March 31, 2018
	As originally reported under LIFO		Effect of change			As adjusted under FIFO
Cost of Sales	$	409,765	$	(1,628	)	$	408,137
Gross Profit		89,570		1,628			91,198
Operating Income		39,655		1,628			41,283
Income Before Provision for Income Taxes		37,664		1,628			39,292
Provision for Income Taxes		6,948		399			7,347
Net Income		30,716		1,229			31,945
Net Income Attributable to Stepan Company		30,723		1,229			31,952
Net Income Per Diluted Common Share Attributable to Stepan Company	$	1.31	$	0.06		$	1.37

Balance Sheet

(In thousands)	December 31, 2018
	As originally reported under LIFO		Effect of change			As adjusted under FIFO
Inventories	$	200,165	$	31,363		$	231,528
Other Non-Current Assets		10,964		(1,415	)		9,549
Total Assets		1,484,666		29,948			1,514,614
Deferred Income Taxes	$	18,672	$	6,289		$	24,961
Retained Earnings		813,448		23,659			837,107
Total Liabilities and Equity		1,484,666		29,948			1,514,614

Statement of Cash Flows

(In thousands)	Three Months Ended March 31, 2018
	As originally reported under LIFO			Effect of change			As adjusted under FIFO
Net Income	$	30,716		$	1,229		$	31,945
Deferred Income Taxes		357			399			756
Change in Assets and Liabilities:
Inventories		(8,993	)		(1,628	)		(10,621	)

Summary of Current Year Financial Statement Line Items If Company Does Not Changed Method of Accounting for U.S. Inventories from LIFO to FIFO

The following tables present what current year financial statement line items would have been had the Company not changed its method of accounting for U.S. inventories from LIFO to FIFO basis:

Income Statement

(In thousands, except per share amounts)	Three Months Ended March 31, 2019
	As reported under FIFO		Effect of change			As computed under LIFO
Cost of Sales	$	404,561	$	1,500		$	406,061
Gross Profit		84,609		(1,500	)		83,109
Operating Income		29,738		(1,500	)		28,238
Income Before Provision for Income Taxes		31,030		(1,500	)		29,530
Provision for Income Taxes		6,052		(368	)		5,684
Net Income		24,978		(1,132	)		23,846
Net Income Attributable to Stepan Company		24,984		(1,132	)		23,852
Net Income Per Diluted Common Share Attributable to Stepan Company	$	1.07	$	(0.05	)	$	1.02

Balance Sheet

(In thousands)	March 31, 2019
	As reported under FIFO		Effect of change			As computed under LIFO
Inventories	$	215,028	$	(32,863	)	$	182,165
Other Non-Current Assets		10,332		1,483			11,815
Total Assets		1,526,000		(31,380	)		1,494,620
Deferred Income Taxes	$	24,158	$	(6,589	)	$	17,569
Retained Earnings		861,773		(24,791	)		836,982
Total Liabilities and Equity		1,526,000		(31,380	)		1,494,620

Statement of Cash Flows

(In thousands)	Three Months Ended March 31, 2019
	As reported under FIFO			Effect of change			As computed under LIFO
Net Income	$	24,978		$	(1,132	)	$	23,846
Deferred Income Taxes		(1,857	)		(368	)		(2,225	)
Change in Assets and Liabilities:
Inventories		16,231			1,500			17,731

Reconciliations of Equity (Tables)

3 Months Ended

Mar. 31, 2019

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, 2019 and 2018:

(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 ⁽²⁾	$	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⁽³⁾		—			—		—		—			(5,325	)		5,325			—
Balance, March 31, 2019	$	832,221		$	26,441	$	185,911	$	(100,098	)	$	(142,580	)	$	861,773		$	774

(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, 2017 ⁽²⁾	$	766,218		$	26,071	$	170,408	$	(78,561	)	$	(99,563	)	$	747,045		$	818

Issuance of 77,474 shares of common stock under stock option plan		3,155			77		3,078		—			—			—			—

Purchase of 6,107 shares of common stock		(2,500	)		—		—		(2,500	)		—			—			—

Stock-based and deferred compensation		(1,136	)		120		1,725		(2,981	)		—			—			—

Net income⁽²⁾		31,945			—		—		—			—			31,952			(7	)

Other comprehensive income		9,567			—		—		—			9,535			—			32

Cash dividends paid:
Common stock ($0.23 per share)		(5,092	)		—		—		—			—			(5,092	)

Other ⁽⁴⁾		(198	)		—		—		—			—			(198	)		—
Balance, March 31, 2018	$	801,959		$	26,268	$	175,211	$	(84,042	)	$	(90,028	)	$	773,707		$	843

⁽¹⁾

Reflects the noncontrolling interest in the Company’s China joint venture.

⁽²⁾

⁽³⁾

⁽⁴⁾

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

Fair Values and Related Carrying Values of Debt

(In thousands)

March 31,

2019

December 31,

2018

Fair value

272,625

274,119

Carrying value

272,800

277,058

Financial Assets and Liabilities Measured on a Recurring Basis at Fair Value

(In thousands)	March 2019		Level 1		Level 2		Level 3
Mutual fund assets	$	25,615	$	25,615	$	—	$	—
Derivative assets:
Foreign currency contracts		31		—		31		—
Total assets at fair value	$	25,646	$	25,615	$	31	$	—
Derivative liabilities:
Foreign currency contracts	$	61	$	—	$	61	$	—

(In thousands)	December 2018		Level 1		Level 2		Level 3
Mutual fund assets	$	25,082	$	25,082	$	—	$	—
Derivative assets:
Foreign currency contracts		185		—		185		—
Total assets at fair value	$	25,267	$	25,082	$	185	$	—
Derivative liabilities:
Foreign currency contracts	$	10	$	—	$	10	$	—

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

Stock-based Compensation (Tables)

3 Months Ended

Mar. 31, 2019

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:

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, 2019		December 31, 2018
Stock options	$	2,935	$	1,655
Stock awards		5,712		3,180
SARs		6,260		3,566

Share Based Payment Awards Granted in Period

The increases in unrecognized compensation costs for stock options, stock awards and SARs reflected the 2019 grants of:

	Shares
Stock options		67,628
Stock awards (at target)		41,528
SARs		146,613

Inventories (Tables)

3 Months Ended

Mar. 31, 2019

Inventory Disclosure [Abstract]

Composition of Inventories

The composition of inventories at March 31, 2019, and December 31, 2018, was as follows:

(In thousands)	March 31, 2019		December 31, 2018 As Adjusted
Finished goods	$	154,758	$	163,617
Raw materials		60,270		67,911
Total inventories	$	215,028	$	231,528

Leases (Tables)

3 Months Ended

Mar. 31, 2019

Leases [Abstract]

Schedule of Lease Cost and Other Information

(In thousands)	March 31, 2019
Lease Cost
Operating lease cost	$	2,688
Short-term lease cost		970
Variable lease cost		348
Total lease cost	$	4,006
Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flow from operating leases	$	2,696
Right-of-use assets obtained in exchange for new operating lease liabilities		294
Weighted-average remaining lease term-operating leases	9 Years
Weighted-average discount rate-operating leases		3.9	%

Schedule of Lease Liability Payments



(In thousands)
Undiscounted Cash Flows:
2019 (excluding the three months ended March 31, 2019)	$	7,870
2020		9,192
2021		6,427
2022		5,317
2023		4,145
Subsequent to 2023		17,231
Total Undiscounted Cash Flows	$	50,182
Less: Imputed interest		(9,846	)
Present value	$	40,336
Current operating lease liabilities ⁽¹⁾		8,975
Non-current operating lease liabilities		31,361
Total lease liabilities	$	40,336

(1)

This item is included in Accrued liabilities line on the Company’s Condensed Consolidated Balance Sheet.

Schedule of Future Minimum Lease Payments Under ASC 840

As required in transition, the table below summarizes the Company’s future minimum lease payments at December 31, 2018 under ASC 840.

(In thousands)
Year
2019	$	9,740
2020		8,294
2021		6,027
2022		5,242
2023		4,101
Subsequent to 2023		16,593
Total minimum future rental payments	$	49,997

Postretirement Benefit Plans (Tables)

3 Months Ended

Mar. 31, 2019

Compensation And Retirement Disclosure [Abstract]

Components of Net Periodic Benefit Cost

	UNITED STATES						UNITED KINGDOM
(In thousands)	Three Months Ended March 31						Three Months Ended March 31
	2019			2018			2019			2018
Interest cost	$	1,661		$	1,539		$	142		$	148
Expected return on plan assets		(2,361	)		(2,321	)		(201	)		(231	)
Amortization of net actuarial loss		652			937			63			57
Net periodic benefit cost	$	(48	)	$	155		$	4		$	(26	)

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
	2019		2018
Retirement savings contributions	$	2,409	$	1,757
Profit sharing contributions		882		942
Total defined contribution plan expenses	$	3,291	$	2,699

Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2019

Earnings Per Share [Abstract]

Computation 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, 2019 and 2018:

(In thousands, except per share amounts)	Three Months Ended March 31
	2019		2018 As Adjusted
Computation of Basic Earnings per Share
Net income attributable to Stepan Company ⁽¹⁾	$	24,984	$	31,952
Weighted-average number of common shares outstanding		23,099		23,082
Basic earnings per share ⁽¹⁾	$	1.08	$	1.38

Computation of Diluted Earnings per Share
Net income attributable to Stepan Company ⁽¹⁾	$	24,984	$	31,952
Weighted-average number of shares outstanding		23,099		23,082
Add weighted-average net shares from assumed exercise of options (under treasury stock method) ⁽²⁾		92		119
Add weighted-average net shares related to unvested stock awards (under treasury stock method)		3		2
Add weighted-average net shares from assumed exercise of SARs (under treasury stock method) ⁽²⁾		108		122
Add weighted-average contingently issuable net shares related to performance stock awards (under treasury stock method)		30		64
Weighted-average shares applicable to diluted earnings		23,332		23,389
Diluted earnings per share⁽¹⁾	$	1.07	$	1.37

⁽¹⁾

Accumulated Other Comprehensive Income (Loss) (Tables)

3 Months Ended

Mar. 31, 2019

Summary of Changes in Accumulated Other Comprehensive Income

(In thousands)	Foreign Currency Translation Adjustments			Defined Benefit Pension Plan Adjustments			Cash Flow Hedge Adjustments			Total
Balance at December 31, 2017	$	(70,561	)	$	(29,093	)	$	91		$	(99,563	)
Other comprehensive income before reclassifications		8,785			—			—			8,785
Amounts reclassified from AOCI		—			753			(3	)		750
Net current-period other comprehensive income		8,785			753			(3	)		9,535
Balance at March 31, 2018	$	(61,776	)	$	(28,340	)	$	88		$	(90,028	)

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
Reclassification 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	)

⁽¹⁾

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, 2019 and 2018, 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
	2019			2018
Amortization of defined benefit pension actuarial losses	$	(715	)	$	(994	)	(b)
		172			241		Tax benefit
	$	(543	)	$	(753	)	Net of tax
Gains and losses on cash flow hedges:
Foreign exchange contracts		2			3		Cost of sales
		2			3		Total before tax
		—			—		Tax benefit
	$	2		$	3		Net of tax
Total reclassifications for the period	$	(541	)	$	(750	)	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 10 for additional details).

Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2019

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, 2019 and 2018, were as follows:

(In thousands)	Three Months Ended March 31
	2019		2018
Segment Net Sales
Surfactants	$	349,650	$	358,940
Polymers		120,179		121,933
Specialty Products		19,341		18,462
Total	$	489,170	$	499,335

Reconciliation of Segment Information to Consolidated Financial Statements

Segment operating income and reconciliations of segment operating income to consolidated income before income taxes for the three months ended March 31, 2019 and 2018, are summarized below:

(In thousands)	Three Months Ended March 31
	2019			2018 As Adjusted
Segment Operating Income
Surfactants ⁽¹⁾	$	37,167		$	41,468
Polymers ⁽¹⁾		12,105			17,305
Specialty Products		3,131			(350	)
Segment operating income⁽¹⁾		52,403			58,423
Business restructuring		(733	)		(358	)
Unallocated corporate expenses ⁽²⁾		(21,932	)		(16,782	)
Consolidated operating income ⁽¹⁾		29,738			41,283
Interest expense, net		(1,853	)		(3,151	)
Other, net		3,145			1,160
Consolidated income before income taxes⁽¹⁾	$	31,030		$	39,292

⁽²⁾

Revenue from Contracts with Customers (Tables)

3 Months Ended

Mar. 31, 2019

Revenue From Contract With Customer [Abstract]

Geographic Disaggregation of Net Sales

	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

	For the Three Months Ended March 31, 2018
(In thousands)
	Surfactants		Polymers		Specialty		Total
Geographic Market
North America	$	220,405	$	73,474	$	14,814	$	308,693
Europe		78,371		41,784		3,648		123,803
Latin America		41,688		827		—		42,515
Asia		18,476		5,848		—		24,324
Total	$	358,940	$	121,933	$	18,462	$	499,335

Debt (Tables)

3 Months Ended

Mar. 31, 2019

Debt Disclosure [Abstract]

Debt

At March 31, 2019, and December 31, 2018, debt comprised the following:

(In thousands)	Maturity Dates	March 31, 2019		December 31, 2018
Unsecured private placement notes
3.95% (net of unamortized debt issuance cost of $349 and $360 for 2019 and 2018, respectively)	2021-2027	$	99,651	$	99,640
3.86% (net of unamortized debt issuance cost of $333 and $347 for 2019 and 2018, respectively)	2019-2025		99,667		99,653
4.86% (net of unamortized debt issuance cost of $176 and $186 for 2019 and 2018, respectively)	2019-2023		46,253		46,243
5.88% (net of unamortized debt issuance cost of $80 and $85 for 2019 and 2018, respectively)	2019-2022		22,777		22,772
Debt of foreign subsidiaries
Unsecured bank debt, foreign currency	2019		3,514		7,772
Total debt		$	271,862	$	276,080
Less current maturities			32,799		37,058
Long-term debt		$	239,063	$	239,022

Other Income And Expenses [Abstract]

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Other, Net (Tables)

3 Months Ended

Mar. 31, 2019

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
	2019		2018
Foreign exchange gains	$	600	$	1,053
Investment income		97		139
Realized and unrealized gains on investments		2,404		97
Net periodic benefit cost		44		(129	)
Other, net	$	3,145	$	1,160

Business Restructuring (Tables)

3 Months Ended

Mar. 31, 2019

Longford Mills [Member]

Restructuring Cost And Reserve [Line Items]

Reconciliation of Restructuring Liabilities

Below is a reconciliation of the December 31, 2018 and the March 31, 2019 restructuring liabilities:

(In thousands)	Termination Benefits			Other Expense			Total
Restructuring liability at December 31, 2018	$	260		$	83		$	343
Expense recognized		—			322			322
Amounts paid		(79	)		(322	)		(401	)
Foreign currency translation		6			2			8
Restructuring liability at March 31, 2019	$	187		$	85		$	272

Acquisition (Tables)

3 Months Ended

Mar. 31, 2019

2018 Acquisition [Member]

Summary of Assets Acquired

The following table summarizes the assets acquired as a result of the acquisition:

(In thousands)
Assets:
Property, plant and equipment	$	14,464
Inventory		5,687
Value-added tax receivables		2,701
Total assets acquired	$	22,852

Change in Method of Accounting for Inventory Valuation - Additional Information (Detail) - USD ($)
$ in Thousands

Mar. 31, 2019

Dec. 31, 2018

Change In Accounting Estimate [Line Items]

Percentage of LIFO inventory

68.00%

Retained earnings

^[1],[2]

$ 861,773

$ 837,107

Effect of Change [Member]

Change In Accounting Estimate [Line Items]

Retained earnings

$ (24,791)

$ 23,659

[1]	The 2018 amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO.
[2]	The 2019 amounts for the noted line items include an adjustment related to the Company’s first quarter 2019 adoption of ASU No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.

Change in Method of Accounting for Inventory Valuation - Summary of Prior Year Financial Statement Line Items that have Been Affected by Retrospective Change in Accounting Principle (Detail) - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

Mar. 31, 2019

Mar. 31, 2018

Dec. 31, 2018

^[1]

$ 404,561

$ 408,137

^[1]

84,609

91,198

^[1],[2]

29,738

41,283

^[1],[2]

31,030

39,292

^[1]

6,052

7,347

^[1],[2]

24,978

31,945

^[3]

Net Income Per Diluted Common Share Attributable to Stepan Company

^[1],[2]

$ 24,984

$ 31,952

^[1],[2]

$ 1.07

$ 1.37

$ 215,028

$ 231,528

^[2]

10,332

9,549

^[2]

1,526,000

1,514,614

^[2]

24,158

24,961

^[2],[4]

861,773

837,107

^[2]

1,526,000

1,514,614

^[1],[2]

24,978

$ 31,945

^[3]

^[2]

(1,857)

756

As Originally Reported Under LIFO [Member]

^[2]

16,231

(10,621)

409,765

89,570

39,655

37,664

6,948

30,716

Net Income Per Diluted Common Share Attributable to Stepan Company

$ 30,723

$ 1.31

200,165

10,964

1,484,666

18,672

813,448

1,484,666

$ 30,716

357

Effect of Change [Member]

(8,993)

(1,628)

1,628

1,628

1,628

399

(1,132)

1,229

Net Income Per Diluted Common Share Attributable to Stepan Company

$ 1,229

$ 0.06

(32,863)

31,363

1,483

(1,415)

(31,380)

29,948

(6,589)

6,289

(24,791)

23,659

(31,380)

$ 29,948

(1,132)

$ 1,229

(368)

399

$ 1,500

$ (1,628)

[1]	The 2018 amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from the last in, first out (LIFO) basis to the first in, first out (FIFO) basis.
[2]	The 2018 amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO.
[3]	The retained earnings and net income amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO.
[4]	The 2019 amounts for the noted line items include an adjustment related to 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.

Change in Method of Accounting for Inventory Valuation - Summary of Current Year Financial Statement Line Items If Company Does Not Changed Method of Accounting for U.S. Inventories from LIFO to FIFO (Detail) - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

Mar. 31, 2019

Mar. 31, 2018

Dec. 31, 2018

^[1]

$ 404,561

$ 408,137

^[1]

84,609

91,198

^[1],[2]

29,738

41,283

^[1],[2]

31,030

39,292

^[1]

6,052

7,347

^[1],[2]

24,978

31,945

^[3]

Net Income Per Diluted Common Share Attributable to Stepan Company

^[1],[2]

$ 24,984

$ 31,952

^[1],[2]

$ 1.07

$ 1.37

$ 215,028

$ 231,528

^[2]

10,332

9,549

^[2]

1,526,000

1,514,614

^[2]

24,158

24,961

^[2],[4]

861,773

837,107

^[2]

1,526,000

1,514,614

^[1],[2]

24,978

$ 31,945

^[3]

^[2]

(1,857)

756

Effect of Change [Member]

^[2]

16,231

(10,621)

(1,628)

1,628

1,628

1,628

399

(1,132)

1,229

Net Income Per Diluted Common Share Attributable to Stepan Company

$ 1,229

$ 0.06

(32,863)

31,363

1,483

(1,415)

(31,380)

29,948

(6,589)

6,289

(24,791)

23,659

(31,380)

$ 29,948

(1,132)

$ 1,229

(368)

399

As Computed under LIFO [Member]

1,500

$ (1,628)

23,846

182,165

11,815

1,494,620

17,569

836,982

1,494,620

23,846

(2,225)

ProForma [Member] | Effect of Change [Member]

17,731

1,500

(1,500)

(1,500)

(1,500)

(368)

(1,132)

Net Income Per Diluted Common Share Attributable to Stepan Company

$ (1,132)

$ (0.05)

ProForma [Member] | As Computed under LIFO [Member]

$ (1,132)

406,061

83,109

28,238

29,530

5,684

23,846

Net Income Per Diluted Common Share Attributable to Stepan Company

$ 23,852

$ 1.02

$ 23,846

[1]	The 2018 amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from the last in, first out (LIFO) basis to the first in, first out (FIFO) basis.
[2]	The 2018 amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO.
[3]	The retained earnings and net income amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO.
[4]	The 2019 amounts for the noted line items include an adjustment related to 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.

Reconciliations of Equity - Reconciliations of Total Equity (Detail) - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2019

Mar. 31, 2018

Issuance of common stock under stock option plan

^[2]

$ 808,185

^[1]

$ 766,218

1,890

3,155

Purchase of common stock

(77)

(2,500)

(1,360)

(1,136)

Other comprehensive income

^[1],[3]

24,978

31,945

^[2]

4,248

9,567

Common stock

(5,643)

(5,092)

Other

^[4]

(198)

832,221

^[1]

801,959

Common Stock [Member]

Issuance of common stock under stock option plan

^[2]

26,309

26,071

120

Additional Paid-in Capital [Member]

26,441

26,268

Issuance of common stock under stock option plan

^[2]

182,881

170,408

1,851

3,078

1,179

1,725

185,911

175,211

Treasury Stock [Member]

^[2]

(97,389)

(78,561)

Purchase of common stock

(77)

(2,500)

(2,632)

(2,981)

Accumulated Other Comprehensive Income (Loss) [Member]

(100,098)

(84,042)

Other comprehensive income

^[2]

(141,483)

(99,563)

4,228

9,535

Other

^[5]

(5,325)

Retained Earnings [Member]

(142,580)

(90,028)

^[2]

837,107

747,045

24,984

31,952

^[2]

Common stock

(5,643)

(5,092)

Other

5,325

^[5]

(198)

^[4]

Noncontrolling Interest [Member]

861,773

773,707

^[2],[6]

760

818

Other comprehensive income

^[6]

(6)

(7)

^[2]

^[6]

2019 (excluding the three months ended March 31, 2019)

^[6]

$ 774

$ 843

[1]	The 2018 amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO.
[2]	The retained earnings and net income amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO.
[3]	The 2018 amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from the last in, first out (LIFO) basis to the first in, first out (FIFO) basis.
[4]	Reflects beginning retained earnings adjustment as a result of the Company’s first quarter 2018 adoption of ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory.
[5]	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. See Note 19 for more details.
[6]	Reflects the noncontrolling interest in the Company’s China joint venture.

Reconciliations of Equity - Reconciliations of Total Equity (Parenthetical) (Detail) - $ / shares	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Number of shares of common stock issued under stock option plan	38,706	77,474
Number of common stock shares purchased	900	6,107
Common stock	$ 0.25	$ 0.23
Common Stock [Member]
Number of shares of common stock issued under stock option plan	38,706	77,474
Additional Paid-in Capital [Member]
Number of shares of common stock issued under stock option plan	38,706	77,474
Treasury Stock [Member]
Number of common stock shares purchased	900	6,107
Retained Earnings [Member]
Common stock	$ 0.25	$ 0.23

Fair Value Measurements - Additional Information (Detail) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Fair Value Disclosures [Abstract]
Unamortized debt issuance cost	$ 938,000	$ 978,000

Fair Value Measurements - Fair Values and Related Carrying Values of Debt (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Carrying value	$ 272,800	$ 277,058
Level 2 [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair value	$ 272,625	$ 274,119

Fair Value Measurements - Financial Assets and Liabilities Measured on a Recurring Basis at Fair Value (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Mutual fund assets	$ 25,615	$ 25,082
Derivative assets:
Foreign currency contracts	31	185
Total assets at fair value	25,646	25,267
Derivative liabilities:
Foreign currency contracts	61	10
Level 1 [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Mutual fund assets	25,615	25,082
Derivative assets:
Total assets at fair value	25,615	25,082
Level 2 [Member]
Derivative assets:
Foreign currency contracts	31	185
Total assets at fair value	31	185
Derivative liabilities:
Foreign currency contracts	$ 61	$ 10

Derivative Instruments - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Derivative notional amount	$ 24,164,006	$ 28,870,081
Minimum [Member]
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Derivative foreign currency exchange contracts durations	1 month
Maximum [Member]
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Derivative foreign currency exchange contracts durations	3 months

Stock-based Compensation - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2019
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 2 months 12 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 - Compensation Expense Recorded for All Stock Options, Stock Awards and SARs (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Compensation expense	$ 2,596	$ 2,232

Stock-based Compensation - Unrecognized Compensation Costs for Stock Options, Stock Awards and SARs (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Stock Option [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation costs for stock options, stock awards and SARs	$ 2,935	$ 1,655
Stock Awards [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation costs for stock options, stock awards and SARs	5,712	3,180
SARs [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation costs for stock options, stock awards and SARs	$ 6,260	$ 3,566

Stock-based Compensation - Share Based Payment Awards Granted in Period (Detail)	3 Months Ended
	Mar. 31, 2019 shares
Stock Option [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock options granted in period	67,628
Stock Awards (at target) [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Awards granted in period	41,528
SARs [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Awards granted in period	146,613

Inventories - Composition of Inventories (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Finished goods	$ 154,758	$ 163,617
Raw materials	60,270	67,911
Total inventories	$ 215,028	$ 231,528

Leases - Additional Information (Detail) $ in Thousands	3 Months Ended
Leases - Additional Information (Detail) $ in Thousands	Mar. 31, 2019 USD ($) Country
Operating Leased Assets [Line Items]
Right of use asset	$ 40,332
Operating lease, liability	$ 40,336
Number of countries leases reside \| Country	4
Percentage of value of leases reside	93.00%
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	49.00%
Real Estate [Member]
Operating Leased Assets [Line Items]
Percentage of lease asset categories	36.00%
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
ASC 842 [Member]
Operating Leased Assets [Line Items]
Right of use asset	$ 42,400
Operating lease, liability	$ 42,400

Leases - Schedule of Lease Cost and Other Information (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($)
Lease Cost
Operating lease cost	$ 2,688
Short-term lease cost	970
Variable lease cost	348
Total lease cost	4,006
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flow from operating leases	2,696
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 294
Weighted-average remaining lease term-operating leases	9 years
Weighted-average discount rate-operating leases	3.90%

Leases - Schedule of Lease Liability Payments (Detail)
$ in Thousands

Mar. 31, 2019

USD ($)

Leases [Abstract]

$ 7,870

9,192

6,427

5,317

4,145

17,231

Total Undiscounted Cash Flows

50,182

Less: Imputed interest

(9,846)

Present value

40,336

Current operating lease liabilities

8,975

^[1]

Non-current operating lease liabilities

31,361

Total lease liabilities

$ 40,336

[1]	This item is included in Accrued liabilities line on the Company’s Condensed Consolidated Balance Sheet

Leases - Schedule of Future Minimum Lease Payments Under ASC 840 (Detail) $ in Thousands	Dec. 31, 2018 USD ($)
Leases [Abstract]
2019	$ 9,740
2020	8,294
2021	6,027
2022	5,242
2023	4,101
Subsequent to 2023	16,593
Total minimum future rental payments	$ 49,997

Contingencies - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Site Contingency [Line Items]
Environmental losses accrual	$ 23,400,000		$ 23,400,000
Cash expenitures related to legal and environmental matters	$ 200,000	$ 200,000
Contribution for future response costs	5.00%
Wilmington Site [Member]
Site Contingency [Line Items]
Payment of environmental response costs	$ 2,700,000
Minimum [Member]
Site Contingency [Line Items]
Environmental and legal losses	23,400,000
Maximum [Member]
Site Contingency [Line Items]
Environmental and legal losses	$ 44,700,000

Postretirement Benefit Plans - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Defined Benefit Plan Disclosure [Line Items]
Net periodic benefit cost	$ (44)	$ 129
United States [Member]
Defined Benefit Plan Disclosure [Line Items]
Interest cost	1,661	1,539
Expected return on plan assets	(2,361)	(2,321)
Amortization of net actuarial loss	652	937
Net periodic benefit cost	(48)	155
United Kingdom [Member]
Defined Benefit Plan Disclosure [Line Items]
Interest cost	142	148
Expected return on plan assets	(201)	(231)
Amortization of net actuarial loss	63	57
Net periodic benefit cost	$ 4	$ (26)

Postretirement Benefit Plans - Defined Benefit Pension Plans - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2019 USD ($)
Defined Contribution Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Balance of trust assets	$ 1,677,000
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	476,000
Employer contributions or payments	$ 173,000

Postretirement Benefit Plans - Defined Contribution Plan Expenses for Company's Qualified Contribution Plans (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Defined Contribution Plan Disclosure [Line Items]
Total defined contribution plan expenses	$ 3,291	$ 2,699
Retirement Savings Contributions [Member]
Defined Contribution Plan Disclosure [Line Items]
Total defined contribution plan expenses	2,409	1,757
Profit Sharing Contributions [Member]
Defined Contribution Plan Disclosure [Line Items]
Total defined contribution plan expenses	$ 882	$ 942

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, 2019

Mar. 31, 2018

Computation of Basic Earnings per Share

Net income attributable to Stepan Company

^[1],[2]

$ 24,984

$ 31,952

Weighted-average number of common shares outstanding

23,099

23,082

Basic earnings per share

^[1],[2]

$ 1.08

$ 1.38

Net income attributable to Stepan Company

^[1]

$ 24,984

$ 31,952

Weighted-average number of common shares outstanding

23,099

23,082

Add weighted-average net shares related to unvested stock awards (under treasury stock method)

Weighted-average shares applicable to diluted earnings

23,332

23,389

Net Income Per Diluted Common Share Attributable to Stepan Company

^[1],[2]

$ 1.07

$ 1.37

Stock Option [Member]

Add weighted-average net shares from assumed exercise of options (under treasury stock method)

^[3]

119

Stock Appreciation Rights (SARs) [Member]

Add weighted-average net shares from assumed exercise of options (under treasury stock method)

^[3]

108

122

Performance Stock Award [Member]

Add weighted-average net shares from assumed exercise of options (under treasury stock method)

[1]	The 2018 amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO.
[2]	The 2018 amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from the last in, first out (LIFO) basis to the first in, first out (FIFO) basis.
[3]	Options/SARs to acquire 214,241 and 2,807 shares of Company common stock were excluded from the computations of diluted earnings per share for the three months ended March 31, 2019 and March 31, 2018, because the effect of including the instruments would have been antidilutive.

Earnings Per Share - Computations of Basic and Diluted Earnings Per Share (Parenthetical) (Detail) - shares	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Options and Stock Appreciation Rights (SARs) [Member]
Earnings Per Share Basic [Line Items]
Options to purchase shares of common stock were excluded from the computations of diluted earnings per share	214,241	2,807

Accumulated Other Comprehensive Income (Loss) - Additional Information (Detail) - USD ($)
$ in Thousands

3 Months Ended

Jan. 01, 2019

Mar. 31, 2019

Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract]

Reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from Tax Act

$ 5,325

$ (5,325)

^[1]

[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. See Note 19 for more details.

Accumulated Other Comprehensive Income (Loss) - Summary of Changes in Accumulated Other Comprehensive Income (Detail) - USD ($)
$ in Thousands

3 Months Ended

Jan. 01, 2019

Mar. 31, 2019

Mar. 31, 2018

Accumulated Other Comprehensive Income Loss [Line Items]

Other comprehensive income before reclassifications

^[1]

$ 807,425

3,687

$ 8,785

Amounts reclassified from AOCI

541

750

Reclassification adjustment related to the Tax Act

5,325

(5,325)

^[2]

(1,097)

9,535

Foreign Currency Translation Adjustments [Member]

^[1]

831,447

Accumulated Other Comprehensive Income Loss [Line Items]

Other comprehensive income before reclassifications

(108,481)

(70,561)

3,687

8,785

3,687

8,785

Defined Benefit Pension Plan Adjustments [Member]

(104,794)

(61,776)

Accumulated Other Comprehensive Income Loss [Line Items]

Amounts reclassified from AOCI

(33,083)

(29,093)

543

753

Reclassification adjustment related to the Tax Act

^[2]

(5,325)

(4,782)

753

Cash Flow Hedge Adjustments [Member]

(37,865)

(28,340)

Accumulated Other Comprehensive Income Loss [Line Items]

Amounts reclassified from AOCI

(2)

(3)

(2)

(3)

AOCI Attributable to Parent [Member]

Accumulated Other Comprehensive Income Loss [Line Items]

$ (141,483)

(141,483)

(99,563)

Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]

$ (142,580)

$ (90,028)

[1]	The 2018 amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO.
[2]	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. See Note 19 for more details.

Accumulated Other Comprehensive Income (Loss) - Summary of Amounts Reclassifications Out of Accumulated Other Comprehensive Income (Detail) - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2019

Mar. 31, 2018

^[1],[2]

$ 31,030

$ 39,292

Tax benefit

^[2]

(6,052)

(7,347)

Defined Benefit Pension Plan Adjustments [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member]

^[2]

404,561

408,137

Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]

Amortization of defined benefit pension actuarial losses

^[3],[4]

(715)

(994)

Tax benefit

^[3]

172

241

Income applicable to common stock

^[3]

(543)

(753)

Cash Flow Hedge Adjustments [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member]

Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]

Income applicable to common stock

^[3]

^[3]

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]

Accumulated Other Comprehensive Income (Loss) [Member]

^[3]

Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]

Income applicable to common stock

^[3]

$ (541)

$ (750)

[1]	The 2018 amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO.
[2]	The 2018 amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from the last in, first out (LIFO) basis to the first in, first out (FIFO) basis.
[3]	Amounts in parentheses denote expense to statement of income.
[4]	This component of accumulated other comprehensive income is included in the computation of net periodic benefit cost (see Note 10 for additional details).

Segment Reporting - Additional Information (Detail)	3 Months Ended
Segment Reporting - Additional Information (Detail)	Mar. 31, 2019 Segment
Segment Reporting [Abstract]
Number of reportable segments	3

Segment Reporting - Operating Segment (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Segment Reporting Information [Line Items]
Net sales	$ 489,170	$ 499,335
Surfactants [Member]
Segment Reporting Information [Line Items]
Net sales	349,650	358,940
Polymers [Member]
Segment Reporting Information [Line Items]
Net sales	120,179	121,933
Specialty Products [Member]
Segment Reporting Information [Line Items]
Net sales	$ 19,341	$ 18,462

Segment Reporting - Reconciliation of Segment Information to Consolidated Financial Statements (Detail) - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2019

Mar. 31, 2018

Business restructuring expenses (Note 17)

^[1],[2]

$ 29,738

$ 41,283

(733)

(358)

Interest expense, net

(1,853)

(3,151)

Other, net

3,145

1,160

Operating Segments [Member]

^[1],[2]

31,030

39,292

Operating Segments [Member] | Surfactants [Member]

^[1]

52,403

58,423

Operating Segments [Member] | Polymers [Member]

^[1]

37,167

41,468

Operating Segments [Member] | Specialty Products [Member]

^[1]

12,105

17,305

Segment Reconciling Items [Member]

3,131

(350)

Unallocated corporate expenses

^[3]

$ (21,932)

$ (16,782)

[1]	The 2018 amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO.
[2]	The 2018 amounts for the noted line items have been changed from the amounts originally reported as a result of the Company’s first quarter 2019 change in method of accounting for U.S. inventory valuation from the last in, first out (LIFO) basis to the first in, first out (FIFO) basis.
[3]	Unallocated corporate expenses primarily comprise corporate administrative expenses (e.g., corporate finance, legal, human resources, information systems, deferred compensation and environmental remediation) that are not included in segment operating income and not used to evaluate segment performance.

Revenue from Contracts with Customers - Additional Information (Detail)	Mar. 31, 2019 USD ($)
Revenue From Contract With Customer [Abstract]
Contract assets	$ 0
Contract liabilities	$ 0

Revenue from Contracts with Customers - Summary of Geographic Disaggregation of Net Sales (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Disaggregation Of Revenue [Line Items]
Net sales	$ 489,170	$ 499,335
North America [Member]
Disaggregation Of Revenue [Line Items]
Net sales	301,645	308,693
Europe [Member]
Disaggregation Of Revenue [Line Items]
Net sales	116,899	123,803
Latin America [Member]
Disaggregation Of Revenue [Line Items]
Net sales	51,009	42,515
Asia [Member]
Disaggregation Of Revenue [Line Items]
Net sales	19,617	24,324
Surfactants [Member]
Disaggregation Of Revenue [Line Items]
Net sales	349,650	358,940
Surfactants [Member] \| North America [Member]
Disaggregation Of Revenue [Line Items]
Net sales	214,297	220,405
Surfactants [Member] \| Europe [Member]
Disaggregation Of Revenue [Line Items]
Net sales	71,478	78,371
Surfactants [Member] \| Latin America [Member]
Disaggregation Of Revenue [Line Items]
Net sales	50,812	41,688
Surfactants [Member] \| Asia [Member]
Disaggregation Of Revenue [Line Items]
Net sales	13,063	18,476
Polymers [Member]
Disaggregation Of Revenue [Line Items]
Net sales	120,179	121,933
Polymers [Member] \| North America [Member]
Disaggregation Of Revenue [Line Items]
Net sales	71,323	73,474
Polymers [Member] \| Europe [Member]
Disaggregation Of Revenue [Line Items]
Net sales	42,105	41,784
Polymers [Member] \| Latin America [Member]
Disaggregation Of Revenue [Line Items]
Net sales	197	827
Polymers [Member] \| Asia [Member]
Disaggregation Of Revenue [Line Items]
Net sales	6,554	5,848
Specialty Products [Member]
Disaggregation Of Revenue [Line Items]
Net sales	19,341	18,462
Specialty Products [Member] \| North America [Member]
Disaggregation Of Revenue [Line Items]
Net sales	16,025	14,814
Specialty Products [Member] \| Europe [Member]
Disaggregation Of Revenue [Line Items]
Net sales	3,316	3,648
Specialty Products [Member] \| Latin America [Member]
Disaggregation Of Revenue [Line Items]
Net sales	0	0
Specialty Products [Member] \| Asia [Member]
Disaggregation Of Revenue [Line Items]
Net sales	$ 0	$ 0

Debt - Debt (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
Debt - Debt (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Total debt	$ 271,862	$ 276,080
Less current maturities	32,799	37,058
Long-term debt	239,063	239,022
Unsecured private placement 3.95% note [Member]
Debt Instrument [Line Items]
Total debt	$ 99,651	$ 99,640
Debt instrument interest rate percentage	3.95%	3.95%
Unsecured private placement 3.95% note [Member] \| Minimum [Member]
Debt Instrument [Line Items]
Maturity Dates	2021	2021
Unsecured private placement 3.95% note [Member] \| Maximum [Member]
Debt Instrument [Line Items]
Maturity Dates	2027	2027
Unsecured private placement 3.86% note [Member]
Debt Instrument [Line Items]
Total debt	$ 99,667	$ 99,653
Debt instrument interest rate percentage	3.86%	3.86%
Unsecured private placement 3.86% note [Member] \| Minimum [Member]
Debt Instrument [Line Items]
Maturity Dates	2019	2019
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	$ 46,253	$ 46,243
Debt instrument interest rate percentage	4.86%	4.86%
Unsecured private placement 4.86% note [Member] \| Minimum [Member]
Debt Instrument [Line Items]
Maturity Dates	2019	2019
Unsecured private placement 4.86% note [Member] \| Maximum [Member]
Debt Instrument [Line Items]
Maturity Dates	2023	2023
Unsecured private placement 5.88% note [Member]
Debt Instrument [Line Items]
Total debt	$ 22,777	$ 22,772
Debt instrument interest rate percentage	5.88%	5.88%
Unsecured private placement 5.88% note [Member] \| Minimum [Member]
Debt Instrument [Line Items]
Maturity Dates	2019	2019
Unsecured private placement 5.88% note [Member] \| Maximum [Member]
Debt Instrument [Line Items]
Maturity Dates	2022	2022
Debt of foreign subsidiaries Unsecured bank debt, foreign currency [Member]
Debt Instrument [Line Items]
Total debt	$ 3,514	$ 7,772
Maturity Dates	2019	2019

Debt - Debt (Parenthetical) (Detail) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Unamortized debt issuance cost	$ 938,000	$ 978,000
Unsecured private placement 3.95% note [Member]
Debt Instrument [Line Items]
Unamortized debt issuance cost	349,000	360,000
Unsecured private placement 3.86% note [Member]
Debt Instrument [Line Items]
Unamortized debt issuance cost	333,000	347,000
Unsecured private placement 4.86% note [Member]
Debt Instrument [Line Items]
Unamortized debt issuance cost	176,000	186,000
Unsecured private placement 5.88% note [Member]
Debt Instrument [Line Items]
Unamortized debt issuance cost	$ 80,000	$ 85,000

Debt - Additional Information (Detail) - Multi currency revolving credit agreement [Member] - USD ($)	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Revolving credit agreement	$ 350,000,000
Credit agreement secured date	Jan. 30, 2023
Letters of Credit Outstanding	$ 5,271,000
Debt Outstanding	0
Unused Revolving credit	344,729,000
Unrestricted retained earnings	$ 235,249,000	$ 214,101,000