View Filing Data

Foreign currency translation adjustments (Note 11)

$ 27,539

$ 24,978

Other comprehensive income:

^[1]

(41,195)

3,707

Defined benefit pension adjustments, net of tax (Note 11)

808

543

Derivative instrument activity, net of tax (Note 11)

(2)

Total other comprehensive income

(40,389)

4,248

Comprehensive income

(12,850)

29,226

Comprehensive income attributable to noncontrolling interests (Note 2)

(14)

Comprehensive income attributable to Stepan Company

$ (12,831)

$ 29,212

[1]	Includes foreign currency translation adjustments related to noncontrolling interest.

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Current Assets:
Cash and cash equivalents	$ 254,339	$ 315,383
Receivables, net	290,568	276,841
Inventories (Note 6)	198,194	203,647
Other current assets	25,443	22,918
Total current assets	768,544	818,789
Property, Plant and Equipment:
Cost	1,752,932	1,762,135
Less: Accumulated depreciation	(1,125,390)	(1,122,818)
Property, plant and equipment, net	627,542	639,317
Goodwill, net	23,059	26,086
Other intangible assets, net	15,819	15,352
Long-term investments (Note 3)	22,209	28,227
Operating lease assets	36,248	38,386
Other non-current assets	12,879	13,210
Total assets	1,506,300	1,579,367
Current Liabilities:
Current maturities of long-term debt (Note 14)	23,571	23,571
Accounts payable	187,941	194,276
Accrued liabilities	98,646	121,267
Total current liabilities	310,158	339,114
Deferred income taxes	23,133	23,391
Long-term debt, less current maturities (Note 14)	198,566	198,532
Non-current operating lease liabilities	27,960	29,654
Other non-current liabilities	79,011	96,180
Commitments and Contingencies (Note 8)
Equity:
Common stock, $1 par value; authorized 60,000,000 shares; Issued 26,540,546 shares in 2020 and 26,493,335 shares in 2019	26,541	26,493
Additional paid-in capital	195,661	193,135
Accumulated other comprehensive loss (Note 11)	(176,546)	(136,170)
Retained earnings	943,807	922,464
Less: Common treasury stock, at cost, 4,074,935 shares in 2020 and 3,979,735 shares in 2019	(122,685)	(114,139)
Total Stepan Company stockholders' equity	866,778	891,783
Noncontrolling interests (Note 2)	694	713
Total equity	867,472	892,496
Total liabilities and equity	$ 1,506,300	$ 1,579,367

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2020	Dec. 31, 2019
Statement Of Financial Position [Abstract]
Common stock, par value	$ 1	$ 1
Common stock, shares authorized	60,000,000	60,000,000
Common stock, shares issued	26,540,546	26,493,335
Treasury stock, shares	4,074,935	3,979,735

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash Flows From Operating Activities
Net income	$ 27,539	$ 24,978
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	20,023	19,403
Deferred compensation	(7,323)	7,473
Realized and unrealized (gains) losses on long-term investments	3,875	(2,404)
Stock-based compensation	1,202	2,596
Deferred income taxes	131	(1,857)
Other non-cash items	395	1,443
Changes in assets and liabilities:
Receivables, net	(30,767)	(17,434)
Inventories	(447)	16,231
Other current assets	(3,180)	(3,247)
Accounts payable and accrued liabilities	(16,583)	(42,279)
Pension liabilities	(236)	(392)
Environmental and legal liabilities	(947)	6
Deferred revenues	(157)	(81)
Net Cash (Used In) Provided By Operating Activities	(6,475)	4,436
Cash Flows From Investing Activities
Expenditures for property, plant and equipment	(33,202)	(25,741)
Asset acquisition (Note 17)	(2,040)
Other, net	2,331	2,037
Net Cash Used In Investing Activities	(32,911)	(23,704)
Cash Flows From Financing Activities
Revolving debt and bank overdrafts, net		(4,230)
Dividends paid	(6,202)	(5,643)
Company stock repurchased	(7,243)	(77)
Stock option exercises	155	1,890
Other, net	(1,128)	(2,718)
Net Cash Used In Financing Activities	(14,418)	(10,778)
Effect of Exchange Rate Changes on Cash	(7,240)	(689)
Net Decrease in Cash and Cash Equivalents	(61,044)	(30,735)
Cash and Cash Equivalents at Beginning of Period	315,383	300,194
Cash and Cash Equivalents at End of Period	254,339	269,459
Supplemental Cash Flow Information
Cash payments of income taxes, net of refunds/payments	3,316	3,018
Cash payments of interest	$ 2,122	$ 2,131

Condensed Consolidated Financial Statements

3 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

Condensed Consolidated Financial Statements

1.	CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The condensed consolidated financial statements included herein have been prepared by Stepan Company (the Company), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted pursuant to such rules and regulations, although management believes that the disclosures are adequate and make the information presented not misleading. In the opinion of management, all adjustments, consisting only of normal recurring accruals, necessary to present fairly the Company’s financial position as of March 31, 2020, and its results of operations and cash flows for the three months ended March 31, 2020 and 2019, have been included. These financial statements and related footnotes should be read in conjunction with the financial statements and related footnotes included in the Company’s 2019 Annual Report on Form 10-K.

Reconciliations of Equity

3 Months Ended

Mar. 31, 2020

Reconciliations of Equity

2.	RECONCILIATIONS OF EQUITY

Below are reconciliations of total equity, Company equity and equity attributable to noncontrolling interests for the three months ended March 31, 2020 and 2019:

(In thousands, except share and per share amounts)	Total			Common Stock		Additional Paid-in Capital		Treasury Stock			Accumulated Other Comprehensive Income (Loss)			Retained Earnings			Noncontrolling Interest ⁽¹⁾
Balance, December 31, 2019	$	892,496		$	26,493	$	193,135	$	(114,139	)	$	(136,170	)	$	922,464		$	713

Issuance of 2,747 shares of common stock under stock option plan		155			3		152		—			—			—			—

Purchase of 89,225 shares of common stock		(7,243	)		—		—		(7,243	)		—			—			—

Stock-based and deferred compensation		1,116			45		2,374		(1,303	)		—			—			—

Net income		27,539			—		—		—			—			27,545			(6	)

Other comprehensive income		(40,389	)		—		—		—			(40,376	)		—			(13	)

Cash dividends paid:
Common stock ($0.28 per share)		(6,202	)		—		—		—			—			(6,202	)		—
Balance, March 31, 2020	$	867,472		$	26,541	$	195,661	$	(122,685	)	$	(176,546	)	$	943,807		$	694

(In thousands, except share and per share amounts)	Total			Common Stock		Additional Paid-in Capital		Treasury Stock			Accumulated Other Comprehensive Income (Loss)			Retained Earnings			Noncontrolling Interest ⁽¹⁾
Balance, December 31, 2018	$	808,185		$	26,309	$	182,881	$	(97,389	)	$	(141,483	)	$	837,107		$	760

Issuance of 38,706 shares of common stock under stock option plan		1,890			39		1,851		—			—			—			—

Purchase of 900 shares of common stock		(77	)		—		—		(77	)		—			—			—

Stock-based and deferred compensation		(1,360	)		93		1,179		(2,632	)		—			—			—

Net income		24,978			—		—		—			—			24,984			(6	)

Other comprehensive income		4,248			—		—		—			4,228			—			20

Cash dividends paid:
Common stock ($0.25 per share)		(5,643	)		—		—		—			—			(5,643	)

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

⁽¹⁾

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

⁽²⁾ 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.

Fair Value Measurements

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Fair Value Measurements

3.	FAIR VALUE MEASUREMENTS

The following were the financial instruments held by the Company at March 31, 2020, and December 31, 2019, and the methods and assumptions used to estimate the instruments’ fair values:

Cash and cash equivalents

Carrying value approximated fair value because of the short maturity of the instruments. Fair value of cash and cash equivalents is a Level 1 measurement.

Derivative assets and liabilities

Derivative assets and liabilities include the foreign currency exchange contracts discussed in Note 4. Fair value and carrying value were the same because the contracts were recorded at fair value. The fair values of the foreign currency contracts were calculated as the difference between the applicable forward foreign exchange rates at the reporting date and the contracted foreign exchange rates multiplied by the contracted notional amounts. See the table below that describes financial assets and liabilities measured on a recurring basis for the reported fair values of derivative assets and liabilities.

Long-term investments

Long-term investments include the mutual fund assets the Company held to fund a portion of its deferred compensation liabilities and all of its non-qualified supplemental executive defined contribution obligations (see the defined contribution plans section of Note 9). Fair value and carrying value were the same because the mutual fund assets were recorded at fair value. Fair values for the mutual funds were calculated using the published market price per unit at the reporting date multiplied by the number of units held at the reporting date. See the table that follows the financial instrument descriptions for the reported fair value of long-term investments.

Debt obligations

The fair value of debt with original maturities greater than one year comprised the combined present values of scheduled principal and interest payments for each of the various loans, individually discounted at rates equivalent to those which could be obtained by the Company for new debt issues with durations equal to the average life to maturity of each loan. The fair values of the remaining Company debt obligations approximated their carrying values due to the short-term nature of the debt. The Company’s fair value measurements for debt fall within level 2 of the fair value hierarchy.

At March 31, 2020, and December 31, 2019, the fair values and related carrying values of debt, including current maturities, were as follows (the fair value and carrying value amounts are presented without regard to unamortized debt issuance costs of $720,000 and $754,000 as of March 31, 2020 and December 31, 2019, respectively):

(In thousands)

March 31,

2020

December 31,

2019

Fair value

219,302

226,712

Carrying value

222,857

The following tables present financial assets and liabilities, excluding cash and cash equivalents, measured on a recurring basis at fair value as of March 31, 2020, and December 31, 2019, and the level within the fair value hierarchy in which the fair value measurements fall:

(In thousands)	March 2020		Level 1		Level 2		Level 3
Mutual fund assets	$	22,209	$	22,209	$	—	$	—
Derivative assets:
Foreign currency contracts		36		—		36		—
Total assets at fair value	$	22,245	$	22,209	$	36	$	—
Derivative liabilities:
Foreign currency contracts	$	1,188	$	—	$	1,188	$	—

(In thousands)	December 2019		Level 1		Level 2		Level 3
Mutual fund assets	$	28,227	$	28,227	$	—	$	—
Derivative assets:
Foreign currency contracts		981		—		981		—
Total assets at fair value	$	29,208	$	28,227	$	981	$	—
Derivative liabilities:
Foreign currency contracts	$	429	$	—	$	429	$	—

Derivative Instruments 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, 2020

Derivative Instruments

4.	DERIVATIVE INSTRUMENTS

The Company is exposed to certain risks relating to its ongoing business operations. The primary risk managed by the use of derivative instruments is foreign currency exchange risk. The Company holds forward foreign currency exchange contracts that are not designated as any type of accounting hedge as defined by GAAP. The Company uses these contracts to manage its exposure to exchange rate fluctuations on certain Company subsidiary cash, accounts receivable, accounts payable and other obligation balances that are denominated in currencies other than the entities’ functional currencies. The forward foreign exchange contracts are recognized on the balance sheet as either an asset or a liability measured at fair value. Gains and losses arising from recording the foreign exchange contracts at fair value are reported in earnings as offsets to the losses and gains reported in earnings arising from the re-measurement of the asset and liability balances into the applicable functional currencies. At March 31, 2020, and December 31, 2019, the Company had open forward foreign currency exchange contracts, all with durations of one to three months, to buy or sell foreign currencies with U.S. dollar equivalent amounts of $28,447,000 and $48,540,368, respectively.

The fair values of the derivative instruments held by the Company on March 31, 2020, and December 31, 2019, are disclosed in Note 3. Derivative instrument gains and losses for the three-month periods ended March 31, 2020 and 2019, were immaterial. For amounts reclassified out of accumulated other comprehensive income (loss) (AOCI) into earnings for the three-month periods ended March 31, 2020 and 2019, see Note 11.

Stock-based Compensation

3 Months Ended

Mar. 31, 2020

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-based Compensation

5.	STOCK-BASED COMPENSATION

On March 31, 2020, the Company had stock options, stock awards and stock appreciation rights (SARs) outstanding under its 2011 Incentive Compensation Plan. SARs granted prior to 2015 are cash-settled, and SARs granted after 2014 are stock-settled. Stock options and SARs granted prior to 2017 generally cliff vested after two years. Starting in 2017, stock options and SARs have a three-year 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 decrease in stock-based compensation expense was primarily attributable to cash-settled SARs. The quarterly decrease in cash-settled SARs compensation expense reflects a decrease in the market value of Company stock during the first quarter of 2020 versus an increase in the first quarter of 2019.

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

(In thousands)	March 31, 2020		December 31, 2019
Stock options	$	3,320	$	1,850
Stock awards		5,819		3,618
SARs		7,209		4,058

The increases in unrecognized compensation costs for stock options, stock awards and SARs reflected the 2020 grants of:

	Shares
Stock options		81,065
Stock awards (at target)		43,046
SARs		173,754

The unrecognized compensation costs at March 31, 2020, are expected to be recognized over weighted-average periods of 2.2 years for stock options, 2.1 years for stock awards and 2.2 years for SARs.

Inventories

3 Months Ended

Mar. 31, 2020

Inventory Disclosure [Abstract]

Inventories

6.	INVENTORIES

The composition of inventories at March 31, 2020, and December 31, 2019, was as follows:

(In thousands)	March 31, 2020		December 31, 2019
Finished goods	$	133,853	$	139,785
Raw materials		64,341		63,862
Total inventories	$	198,194	$	203,647

Leases

3 Months Ended

Mar. 31, 2020

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.

The Company’s operating leases are primarily comprised of railcars, real estate, storage tanks, autos, trailers and manufacturing/office equipment. Railcars and real estate comprise approximately 50 percent and 38 percent, respectively, of the Company’s consolidated ROU asset balance. With the exception of real estate, typical lease terms range from one to ten years. Real estate lease terms typically range from one to fifty years. The Company’s two principal real estate leases relate to land leases in the Philippines and Singapore. As of March 31, 2020, the Company had additional leases, primarily for equipment and storage tanks, that have not commenced of approximately $731,000. These leases will commence in the second quarter of 2020 with lease terms ranging from three to five years.

Variability associated with the Company’s lease obligations typically relates to: (i) additional charges based on usage (i.e., railcar mileage in excess of a specified amount) and, (ii) periodic increases associated with Consumer Price Index (CPI) changes (i.e., land rental payments). Appropriate CPI at the inception of a lease is reflected in the Company’s lease liability balances whereas variability based on usage is typically excluded from lease liability amounts. Some of the Company’s leases include options to extend the lease term but these are typically not recognized as part of the ROU asset or lease liability at inception unless it is reasonably certain the renewal option will be exercised. Determining whether a renewal option is reasonably certain to be exercised requires judgment based on the existing facts and circumstances as well as expectations about future business needs. Renewal options are typically re-assessed within one year or less prior to lease termination when the Company is able to more accurately forecast future business needs. Some of the Company’s lease contracts include options to terminate leases early but these are typically not considered unless it is reasonably certain the early termination option will be exercised. The Company’s leases do not typically carry any residual value guarantees and typically payment is not considered probable when such guarantees are included in the contract.

As most of the Company’s leases do not provide an implicit borrowing rate, the Company uses its incremental borrowing rate (IBR) based on the information available at the commencement date in determining the present value of lease payments. IBRs were specifically determined for the United States, the Philippines, Singapore, Brazil and China, typically for five-year increments. The U.S. IBR was used for all other countries as the leases in these countries are not material. The total value of leases that reside in the five countries identified above represents approximately 97 percent of the Company’s consolidated ROU asset balance.

(In thousands)	March 31, 2020
Lease Cost
Operating lease cost	$	2,721
Short-term lease cost		1,179
Variable lease cost		298
Total lease cost	$	4,198
Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flow from operating leases	$	2,747
Right-of-use assets obtained in exchange for new operating lease liabilities		666

(In thousands)
Undiscounted Cash Flows:
2020 (excluding the three months ended March 31, 2020)	$	7,484
2021		7,632
2022		6,421
2023		5,118
2024		3,060
Subsequent to 2024		16,437
Total Undiscounted Cash Flows	$	46,152
Less: Imputed interest		(9,888	)
Present value	$	36,264
Current operating lease liabilities ⁽¹⁾		8,304
Non-current operating lease liabilities		27,960
Total lease liabilities	$	36,264

(1)

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

Weighted-average remaining lease term-operating leases		9 years
Weighted-average discount rate-operating leases			4.3	%

Contingencies

3 Months Ended

Mar. 31, 2020

Commitments And Contingencies Disclosure [Abstract]

Contingencies

8.	CONTINGENCIES

There are a variety of legal proceedings pending or threatened against the Company that occur in the normal course of the Company’s business, the majority of which relate to environmental assessment, protection and remediation matters. Some of these proceedings may result in fines, penalties, judgments or costs being assessed against the Company at some future time. The Company’s operations are subject to extensive local, state and federal regulations, including the U.S. Comprehensive

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

In determining the appropriate level of environmental reserves, the Company considers several factors such as information obtained from investigatory studies; changes in the scope of remediation; the interpretation, application and enforcement of laws and regulations; changes in the costs of remediation programs; the development of alternative cleanup technologies and methods; and the relative level of the Company’s involvement at various sites for which the Company is allegedly associated. The level of annual expenditures for remedial, monitoring and investigatory activities will change in the future as major components of planned remediation activities are completed and the scope, timing and costs of existing activities are changed. As of March 31, 2020, the Company estimated a range of possible environmental and legal losses of $24.9 million to $43.0 million. Within the range of possible environmental and legal losses, management has currently concluded that no single amount is more likely to occur than any other amounts in the ranges and, thus, has accrued at the lower end of the range. These accruals totaled $24.9 million at March 31, 2020 and $25.9 million at December 31, 2019. Although the Company believes that its reserves are adequate for environmental contingencies, it is possible due to the uncertainties noted above, that additional reserves could be required in the future. Cash expenditures related to legal and environmental matters approximated $0.9 million and $0.2 million for the three-month periods ended March 31, 2020 and 2019, respectively.

For certain sites, the Company has responded to information requests made by federal, state or local government agencies but has received no response confirming or denying the Company’s stated positions. As such, estimates of the total costs, or range of possible costs, of remediation, if any, or the Company’s share of such costs, if any, cannot be determined with respect to these sites. Consequently, the Company is unable to predict the effect thereof on the Company’s financial position, cash flows and results of operations. Based upon the Company’s present knowledge with respect to its involvement at these sites, the possibility of other viable entities’ responsibilities for cleanup, management believes that the Company has no material liability at these sites and that these matters, individually and in the aggregate, will not have a material effect on the Company’s financial position. However, in the event of one or more adverse determinations with respect to such sites in any annual or interim period, the effect on the Company’s cash flows and results of operations for those periods could be material.

Following are summaries of the Company’s major contingencies at March 31, 2020:

Maywood, New Jersey Site

The Company’s property in Maywood, New Jersey and property formerly owned by the Company adjacent to its current site and other nearby properties (collectively, the Maywood site) were listed on the National Priorities List in September 1993 pursuant to the provisions of CERCLA because of alleged chemical contamination. Pursuant to (i) a September 21, 1987 Administrative Order on Consent entered into between the U.S. Environmental Protection Agency (USEPA) and the Company for property formerly owned by the Company at the Maywood site and (ii) the issuance of an order on November 12, 2004 by the USEPA to the Company for property currently owned by the Company at the Maywood site, the Company has completed various Remedial Investigation Feasibility Studies (RI/FS), and on September 24, 2014, USEPA issued its Record of Decision (ROD) for chemically-contaminated soil at the Maywood site, which requires the Company to perform remedial cleanup of the soil and buried waste. The USEPA has not yet issued a ROD for chemically-contaminated groundwater at the Maywood site. Based on the most current information available, the Company believes its recorded liability is reasonable having considered the range of estimated costs of remediation for the Maywood site. The estimate of the cost of remediation for the Maywood site could change as the Company continues to hold discussions with the USEPA, as the design of the remedial action is finalized, if a groundwater ROD is issued or if other PRPs are identified. The ultimate amount for which the Company is liable could differ materially from the Company’s current recorded liability.

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

In addition, under the terms of a settlement agreement reached on November 12, 2004, the U.S. Department of Justice and the Company agreed to fulfill the terms of a Cooperative Agreement reached in 1985. Under the Cooperative Agreement, the United States is responsible for the removal of radioactive waste at the Maywood site and it has incurred and will incur future remediation costs at the site. As such, the Company recorded no liability related to this settlement agreement.

D’Imperio Property Site

During the mid-1970’s, Jerome Lightman and the Lightman Drum Company disposed of hazardous substances generated by the Company at several sites in New Jersey, including the D’Imperio site. The Company was named as a PRP in an October 2, 1998, lawsuit in the U.S. District Court for the District of New Jersey that involved the D’Imperio Site. In 2019, the PRPs were provided with updated remediation cost estimates by the PRP group technical consultant and project manager, which the Company considered in its determination of its range of estimated possible losses and liability balance. The changes in range of possible losses and liability balance were immaterial. Remediation work is continuing at the D’Imperio site. Based on current information, the Company believes that its recorded liability is reasonable having considered the range of estimated cost of remediation for the D’Imperio site. Depending on the ultimate cost of the remediation at this site, the amount for which the Company is liable could differ materially from the current estimates.

Wilmington Site

The Company is currently contractually obligated to contribute to the environmental response costs associated with the Company’s formerly-owned site in Wilmington, Massachusetts (the Wilmington site). Remediation at this site is being managed by its current owner to whom the Company sold the property in 1980. Under the Company’s October 1, 1993, agreement with the current owner of the Wilmington site, once total site remediation costs exceed certain levels, the Company is obligated to contribute up to five percent of future response costs associated with this site with no limitation on the ultimate amount of contributions. The Company has paid the current owner $2.9 million for the Company’s portion of environmental response costs at the Wilmington site through March 31, 2020. The Company has recorded a liability for its portion of the estimated remediation costs for the site. Depending on the ultimate cost of the remediation at this site, the amount for which the Company is liable could differ materially from the current estimates.

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

Other U.S. Sites

Through the regular environmental monitoring of its plant production sites, the Company discovered levels of chemical contamination that were above thresholds allowed by law at its Millsdale, Illinois and Fieldsboro, New Jersey plants. The Company voluntarily reported its results to the applicable state environmental agencies. As a result, the Company is required to perform self-remediation of the affected areas. Based on current information, the Company believes that its recorded liability for the remediation of the affected areas is appropriate based on an estimate of expected costs. However, actual costs could differ materially from current estimates.

Postretirement Benefit Plans

3 Months Ended

Mar. 31, 2020

Compensation And Retirement Disclosure [Abstract]

Postretirement Benefit Plans

9.	POSTRETIREMENT BENEFIT PLANS

Defined Benefit Pension Plans

The Company sponsors various funded qualified and unfunded non-qualified defined benefit pension plans, the most significant of which cover employees in the U.S. and U.K. locations. The U.S. and U.K. defined benefit pension plans are frozen and service benefits are no longer being accrued.

Components of Net Periodic Benefit Cost

	UNITED STATES						UNITED KINGDOM
(In thousands)	Three Months Ended March 31						Three Months Ended March 31
	2020			2019			2020			2019
Interest cost	$	1,421		$	1,661		$	109		$	142
Expected return on plan assets		(2,437	)		(2,361	)		(134	)		(201	)
Amortization of net actuarial loss		1,052			652			19			63
Net periodic (benefit) cost	$	36		$	(48	)	$	(6	)	$	4

Employer Contributions

U.S. Plans

As a result of pension funding relief provisions included in the Highway and Transportation Funding Act of 2014, the Company is not required to make contributions to its funded U.S. qualified defined benefit plans. Approximately $312,000 is expected to

be paid to the unfunded non-qualified plans in 2020. Of such amount, $143,000 had been paid related to the non-qualified plans as of March 31, 2020.

U.K. Plan

The Company’s U.K. subsidiary expects to contribute approximately $495,000 to its defined benefit pension plan in 2020. Of such amount, $168,000 had been contributed to the plan as of March 31, 2020.

Defined Contribution Plans

The Company sponsors retirement savings defined contribution plans that cover eligible U.S. and U.K. employees. The Company’s U.S. retirement plans include two qualified plans, one of which is a 401(k) plan and one of which is an employee stock ownership plan, and one non-qualified supplemental executive plan. In the three months ended March 31, 2020 and 2019, the Company made profit sharing contributions into the qualified retirement plans for U.S. employees and for certain non-U.S. employees. Profit sharing contributions were determined using a formula applied to Company earnings. In 2019 and 2020, profit sharing contributions for U.S. employees were made to the employee stock ownership plan. Profit sharing contributions are allocated to participant accounts on the basis of participant base earnings.

Defined contribution plan expenses for the Company’s qualified contribution plans were as follows:

(In thousands)	Three Months Ended March 31
	2020		2019
Retirement savings contributions	$	1,758	$	2,409
Profit sharing contributions		975		882
Total defined contribution plan expenses	$	2,733	$	3,291

The Company has a rabbi trust to fund the obligations of its non-qualified supplemental executive defined contribution plans (supplemental plans). The trust comprises various mutual fund investments selected by the participants of the supplemental plans. In accordance with the accounting guidance for rabbi trust arrangements, the assets of the trust and the obligations of the supplemental plans are reported on the Company’s consolidated balance sheets. The Company elected the fair value option for the mutual fund investment assets so that offsetting changes in the mutual fund values and defined contribution plan obligations would be recorded in earnings in the same period. Therefore, the mutual funds are reported at fair value with any subsequent changes in fair value recorded in the consolidated statements of income. The liabilities related to the supplemental plans increase (i.e., supplemental plan expense is recognized) when the value of the trust assets appreciates and decrease when the value of the trust assets declines (i.e., supplemental plan income is recognized). At March 31, 2020, the balance of the trust assets was $1,619,000, which equaled the balance of the supplemental plan liabilities (see the long-term investments section in Note 3 for further information regarding the Company’s mutual fund assets).

Earnings Per Share

3 Months Ended

Mar. 31, 2020

Earnings Per Share [Abstract]

Earnings Per Share

10.	EARNINGS PER SHARE

Below are the computations of basic and diluted earnings per share for the three months ended March 31, 2020 and 2019:

(In thousands, except per share amounts)	Three Months Ended March 31
	2020		2019
Computation of Basic Earnings per Share
Net income attributable to Stepan Company	$	27,545	$	24,984
Weighted-average number of common shares outstanding		23,023		23,099
Basic earnings per share	$	1.20	$	1.08

Computation of Diluted Earnings per Share
Net income attributable to Stepan Company	$	27,545	$	24,984
Weighted-average number of shares outstanding		23,023		23,099
Add weighted-average net shares from assumed exercise of options (under treasury stock method) ⁽¹⁾		102		92
Add weighted-average net shares related to unvested stock awards (under treasury stock method)		1		3
Add weighted-average net shares from assumed exercise of SARs (under treasury stock method) ⁽¹⁾		128		108
Add weighted-average contingently issuable net shares related to performance stock awards (under treasury stock method)		31		30
Weighted-average shares applicable to diluted earnings		23,285		23,332
Diluted earnings per share	$	1.18	$	1.07

⁽¹⁾ Options/SARs to acquire 256,288 and 214,241 shares of Company common stock were excluded from the computations of diluted earnings per share for the three months ended March 31, 2020 and March 31, 2019. Inclusion of the instruments would have had an antidilutive effect on the earnings per share computations.

Accumulated Other Comprehensive Income (Loss)

3 Months Ended

Mar. 31, 2020

Accumulated Other Comprehensive Income (Loss)

11.	ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

Below is the change in the Company’s AOCI balance by component (net of income taxes) for the three months ended March 31, 2020 and 2019:

(In thousands)	Foreign Currency Translation Adjustments			Defined Benefit Pension Plan Adjustments			Cash Flow Hedge Adjustments			Total
Balance at December 31, 2018	$	(108,481	)	$	(33,083	)	$	81		$	(141,483	)
Other comprehensive income before reclassifications		3,687			—			—			3,687
Amounts reclassified from AOCI		—			543			(2	)		541
Remeasurement adjustment related to the Tax Act ⁽¹⁾		—			(5,325	)		—			(5,325	)
Net current-period other comprehensive income		3,687			(4,782	)		(2	)		(1,097	)
Balance at March 31, 2019	$	(104,794	)	$	(37,865	)	$	79		$	(142,580	)

Balance at December 31, 2019	$	(104,037	)	$	(32,205	)	$	72		$	(136,170	)
Other comprehensive income before reclassifications		(41,182	)		808			—			(40,374	)
Amounts reclassified from AOCI		—			—			(2	)		(2	)
Net current-period other comprehensive income		(41,182	)		808			(2	)		(40,376	)
Balance at March 31, 2020	$	(145,219	)	$	(31,397	)	$	70		$	(176,546	)

⁽¹⁾

^{Represents reclassification of the stranded tax effects resulting from the U.S. Tax Cuts and Jobs Act (Tax Act) from accumulated other comprehensive income (loss) to retained earnings in accordance with ASU 2018-02.}

Information regarding the reclassifications out of AOCI for the three-month periods ended March 31, 2020 and 2019, is displayed below:

(In thousands)	Amount Reclassified from AOCI^(a)
AOCI Components	Three Months Ended March 31						Affected Line Item in Consolidated Statements of Income
	2020			2019
Amortization of defined benefit pension actuarial losses	$	(1,071	)	$	(715	)	(b)
		263			172		Tax benefit
	$	(808	)	$	(543	)	Net of tax
Gains and losses on cash flow hedges:
Foreign exchange contracts		2			2		Cost of sales
		2			2		Total before tax
		—			—		Tax benefit
	$	2		$	2		Net of tax
Total reclassifications for the period	$	(806	)	$	(541	)	Net of tax

^(a)

Amounts in parentheses denote expense to statement of income.

^(b)

This component of accumulated other comprehensive income is included in the computation of net periodic benefit cost (see Note 9 for additional details).

Segment Reporting

3 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

Segment Reporting

12.	SEGMENT REPORTING

The Company has three reportable segments: Surfactants, Polymers and Specialty Products. Net sales by segment for the three months ended March 31, 2020 and 2019, were as follows:

(In thousands)	Three Months Ended March 31
	2020		2019
Segment Net Sales
Surfactants	$	327,071	$	349,650
Polymers		106,491		120,179
Specialty Products		16,425		19,341
Total	$	449,987	$	489,170

Segment operating income and reconciliations of segment operating income to income before provision for income taxes for the three months ended March 31, 2020 and 2019, are summarized below:

(In thousands)	Three Months Ended March 31
	2020			2019
Segment Operating Income
Surfactants	$	36,156		$	37,167
Polymers		7,516			12,105
Specialty Products		3,984			3,131
Segment operating income		47,656			52,403
Business restructuring		(357	)		(733	)
Unallocated corporate expenses ⁽¹⁾		(7,295	)		(21,932	)
Consolidated operating income		40,004			29,738
Interest expense, net		(1,230	)		(1,853	)
Other, net		(3,262	)		3,145
Income before provision for income taxes	$	35,512		$	31,030

⁽¹⁾

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

Revenue from Contracts with Customers

3 Months Ended

Mar. 31, 2020

Revenue From Contract With Customer [Abstract]

Revenue from Contracts with Customers

13.	REVENUE FROM CONTRACTS WITH CUSTOMERS

The Company deems a contract with a customer to exist when a purchase order is received from a customer for a specified quantity of product or products and the Company acknowledges receipt of such purchase order. In some instances the Company has entered into manufacturing supply agreements with customers but these agreements typically do not bind a customer to any purchase volume requirements and thus an obligation is not created until the customer submits a purchase order to the Company. The Company’s contracts typically have a single performance obligation that is satisfied at the time a product is shipped and control passes to the customer. For a small portion of the business, performance obligations are deemed satisfied when product is delivered to a customer location.

As of March 31, 2020, the Company had $274,000 of contract liabilities and no contract assets. A contract liability would typically arise when an advance or deposit is received from a customer before the Company recognizes revenue. In practice, this is rare as it would require a customer to make a payment prior to a performance obligation being satisfied. When such situations do arise, the Company would maintain a deferred revenue liability until the time a performance obligation has been satisfied. The Company recognized $350,000 of revenue in the current period from pre-existing contract liabilities at December 31, 2019.

The tables below provide a geographic disaggregation of net sales for the three months ended March 31, 2020 and 2019. The Company’s business segmentation by geographic region most effectively captures the nature and economic characteristics of the Company’s revenue streams impacted by economic factors.

	For the Three Months Ended March 31, 2020
(In thousands)
	Surfactants		Polymers		Specialty		Total
Geographic Market
North America	$	207,946	$	61,841	$	13,494	$	283,281
Europe		59,660		36,560		2,931		99,151
Latin America		46,510		639		—		47,149
Asia		12,955		7,451		—		20,406
Total	$	327,071	$	106,491	$	16,425	$	449,987

	For the Three Months Ended March 31, 2019
(In thousands)
	Surfactants		Polymers		Specialty		Total
Geographic Market
North America	$	214,297	$	71,323	$	16,025	$	301,645
Europe		71,478		42,105		3,316		116,899
Latin America		50,812		197		—		51,009
Asia		13,063		6,554		—		19,617
Total	$	349,650	$	120,179	$	19,341	$	489,170

Debt

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Debt

14.

DEBT

Debt was comprised of the following at March 31, 2020, and December 31, 2019:

(In thousands)	Maturity Dates	March 31, 2020		December 31, 2019
Unsecured private placement notes
3.95% (net of unamortized debt issuance cost of $305 and $316 for 2020 and 2019, respectively)	2021-2027	$	99,695	$	99,684
3.86% (net of unamortized debt issuance cost of $278 and $291 for 2020 and 2019, respectively)	2020-2025		85,436		85,423
4.86% (net of unamortized debt issuance cost of $137 and $147 for 2020 and 2019, respectively)	2020-2023		37,006		36,996
Total debt		$	222,137	$	222,103
Less current maturities			23,571		23,571
Long-term debt		$	198,566	$	198,532

The Company has a committed $350,000,000 multi-currency revolving credit agreement that expires on January 30, 2023. The Company maintains standby letters of credit under its workers’ compensation insurance agreements and for other purposes, as needed from time to time, which are issued under the revolving credit agreement. As of March 31, 2020, the Company had outstanding letters of credit totaling $4,929,000 and no borrowings under the revolving credit agreement. There was $345,071,000 available under the revolving credit agreement as of March 31, 2020.

The Company’s loan agreements contain provisions which, among others, require maintenance of certain financial ratios and place limitations on additional debt, investments and payment of dividends. Based on the loan agreement provisions that place limitations on dividend payments, unrestricted retained earnings (i.e., retained earnings available for dividend distribution) were $298,207,000 and $283,956,000 at March 31, 2020 and December 31, 2019, respectively.

Other, Net

3 Months Ended

Mar. 31, 2020

Other Income And Expenses [Abstract]

Other, Net

15.	OTHER, NET

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

(In thousands)	Three Months Ended March 31
	2020			2019
Foreign exchange gains	$	568		$	600
Investment income		75			97
Realized and unrealized gains (losses) on investments		(3,875	)		2,404
Net periodic pension benefit (cost)		(30	)		44
Other, net	$	(3,262	)	$	3,145

Business Restructuring

3 Months Ended

Mar. 31, 2020

Restructuring And Related Activities [Abstract]

Business Restructuring

16.	BUSINESS RESTRUCTURING

In the first quarter of 2019, the Company approved a plan to restructure its Specialty Products office in the Netherlands and eliminate five positions from the site’s supply chain, quality control and research and development areas. This planned reduction in positions was made to better align the number of personnel with current business requirements and reduce costs at the site. As a result, severance and early lease termination expenses of $396,000 and $79,000, respectively, were recognized during the first quarter of 2019.

During the third quarter of 2018, the Company approved a plan to shut down Surfactant operations at its German plant site. As of March 31, 2020, an aggregate of $2,392,000 shut down related expense has been recognized at the site. This aggregate expense is comprised of $1,404,000 of asset and spare part write downs recognized in 2018 and $988,000 of cumulative decommissioning costs. The Company recognized $79,000 and $187,000 of decommissioning expenses in the first quarter of 2020 and 2019, respectively.

In the fourth quarter of 2017, the Company approved a plan to restructure a portion of its Fieldsboro, New Jersey production facility. As a result, the Company recorded $915,000 of restructuring expense which reflected termination benefits for select plant employees. In the first quarter of 2019, the Company recognized a $251,000 favorable adjustment to the amount of termination benefits initially recorded.

In May 2016, the Company announced plans to shut down its Longford Mills, Ontario, Canada (Longford Mills) manufacturing facility, a part of the Surfactant reportable segment, by December 31, 2016. The shutdown plan was implemented to improve the Company’s asset utilization in North America and to reduce the Company’s fixed cost base. Manufacturing operations of the Longford Mills plant ceased by the end of 2016, and production of goods manufactured at the facility was transferred to other Company North American production sites. Decommissioning of the assets is expected to continue throughout 2020. As of March 31, 2020, $7,762,000 of aggregate restructuring expense has been recognized, reflecting $1,644,000 of termination benefits for approximately 30 employees and $6,118,000 for other expenses, principally site decommissioning costs. The Company recognized $278,000 and $322,000 of decommissioning expenses in the first quarter of 2020 and 2019, respectively.

Acquisitions

3 Months Ended

Mar. 31, 2020

Business Combinations [Abstract]

Acquisitions

17.	ACQUISITIONS

2020 Acquisition

On March 13, 2020, the Company acquired certain assets of Logos Technologies LLC's NatSurFact® business, a rhamnolipid-based line of bio-surfactants derived from renewable sources. These bio-surfactants offer synergies in several strategic end use markets including oilfield, agriculture, personal care and household, industrial and institutional. The acquisition was accounted for as an asset acquisition. The purchase price of the acquisition was $2,040,000 and was paid with cash on hand. All assets acquired are included in the Company’s Surfactants segment. The assets acquired were primarily intangibles, including trademarks and know-how ($1,071,000) and patents ($357,000). Additionally, $612,000 of laboratory equipment was acquired.

2019 Acquisition

On December 17, 2019, the Company acquired an oilfield demulsifier product line. The purchase price of the acquisition was $9,000,000 and was paid with cash on hand. This acquisition was accounted for as a business combination and the assets were measured and recorded at their estimated fair values. The fair value analysis was updated in the first quarter of 2020. The primary assets acquired were intangibles, mostly comprised of goodwill ($3,161,000), product know-how ($3,300,000) and customer relationships ($1,900,000). A small amount of inventory was also acquired. All of the acquired assets are included within the Company’s Surfactants segment. The average amortization period for the identifiable intangibles assets is 20 years.

Pro forma financial information has not been included because revenues and earnings of the Company’s consolidated entity would not have been materially different than reported had the acquisition date been January 1, 2019. The acquired business did not impact the Company’s 2019 financial results.

Recent Accounting Pronouncements

3 Months Ended

Mar. 31, 2020

Accounting Changes And Error Corrections [Abstract]

Recent Accounting Pronouncements

18.	RECENT ACCOUNTING PRONOUNCEMENTS

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments which amends the guidance on the measurement of the impairment of financial instruments. The new pronouncement replaces the existing model of measuring credit losses with an expected credit loss model referred to as “the Current Expected Credit Loss (CECL) model.” The new model is based on expected losses that should be measured based not only on historical experience but on the combination of historical data, current conditions and reasonable forecasts. Under this methodology, an entity recognizes as an allowance its estimate of lifetime expected credit losses and is required to apply the new credit loss model to most financial instruments held at amortized cost including trade receivables. The amendments in the update are effective for fiscal years, and interim periods within fiscal years, beginning after December 15, 2019. The Company

adopted ASU No. 2016-13 in the first quarter of 2020. The adoption of the guidance in ASU No. 2016-13 did not have a material effect on the Company’s financial position, results of operations or cash flows.

In January 2017, the FASB issued ASU No. 2017-4, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, 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 adopted the amendments in ASU No. 2017-4 for its annual, or any interim, goodwill impairment tests in the first quarter of 2020. The adoption of the guidance in ASU No. 2017-4 did not have a material effect on the Company’s financial position, results of operations or cash flows.

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 Company adopted ASU No. 2018-13 in the first quarter of 2020 and the adoption of this update did not have an effect on the Company’s financial position, results of operations, cash flows or the disclosures made for fair value measurements used by the Company.

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 adopted ASU N0 2018-15 prospectively in the first quarter of 2020. The adoption of ASU No.2018-15 did not have a material impact on the Company’s financial position, results of operations and cash flows.

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 December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes. This update provides guidance to reduce complexity in certain areas of accounting for income taxes. The amendments in this update are effective for fiscal years beginning after December 15, 2020. The adoption of this update is not expected to have a material effect on the Company’s financial position, results of operations and cash flows.

In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) Facilitation of the effect of reference rate reform on financial reporting. This update provides optional guidance for a limited period of time to ease the burden of implementing the usage of new reference rates. The amendments apply to contracts modifications that replace a reference rate affected by reference rate reform and contemporaneous modifications of other contract terms related to the replacement of the reference rate. If elected the optional expedients to contract modifications must be applied consistently for all eligible contracts or eligible transactions. The amendments in this update may be implemented between March 12, 2020 and December 31, 2022. The guidance should be applied prospectively. The Company has not yet implemented ASU No. 2020-04 and currently is in the process of assessing the potential impact of ASU No. 2020-04 on its financial position, results of operations and cash flows.

Recent Accounting Pronouncements (Policies)

3 Months Ended

Mar. 31, 2020

Accounting Changes And Error Corrections [Abstract]

Recent Accounting Pronouncements

Reconciliations of Equity (Tables)

3 Months Ended

Mar. 31, 2020

Reconciliations of Total Equity

Below are reconciliations of total equity, Company equity and equity attributable to noncontrolling interests for the three months ended March 31, 2020 and 2019:

(In thousands, except share and per share amounts)	Total			Common Stock		Additional Paid-in Capital		Treasury Stock			Accumulated Other Comprehensive Income (Loss)			Retained Earnings			Noncontrolling Interest ⁽¹⁾
Balance, December 31, 2019	$	892,496		$	26,493	$	193,135	$	(114,139	)	$	(136,170	)	$	922,464		$	713

Issuance of 2,747 shares of common stock under stock option plan		155			3		152		—			—			—			—

Purchase of 89,225 shares of common stock		(7,243	)		—		—		(7,243	)		—			—			—

Stock-based and deferred compensation		1,116			45		2,374		(1,303	)		—			—			—

Net income		27,539			—		—		—			—			27,545			(6	)

Other comprehensive income		(40,389	)		—		—		—			(40,376	)		—			(13	)

Cash dividends paid:
Common stock ($0.28 per share)		(6,202	)		—		—		—			—			(6,202	)		—
Balance, March 31, 2020	$	867,472		$	26,541	$	195,661	$	(122,685	)	$	(176,546	)	$	943,807		$	694

(In thousands, except share and per share amounts)	Total			Common Stock		Additional Paid-in Capital		Treasury Stock			Accumulated Other Comprehensive Income (Loss)			Retained Earnings			Noncontrolling Interest ⁽¹⁾
Balance, December 31, 2018	$	808,185		$	26,309	$	182,881	$	(97,389	)	$	(141,483	)	$	837,107		$	760

Issuance of 38,706 shares of common stock under stock option plan		1,890			39		1,851		—			—			—			—

Purchase of 900 shares of common stock		(77	)		—		—		(77	)		—			—			—

Stock-based and deferred compensation		(1,360	)		93		1,179		(2,632	)		—			—			—

Net income		24,978			—		—		—			—			24,984			(6	)

Other comprehensive income		4,248			—		—		—			4,228			—			20

Cash dividends paid:
Common stock ($0.25 per share)		(5,643	)		—		—		—			—			(5,643	)

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

⁽¹⁾

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

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Fair Values and Related Carrying Values of Debt

(In thousands)

March 31,

2020

December 31,

2019

Fair value

219,302

226,712

Carrying value

222,857

Financial Assets and Liabilities, Excluding Cash and Cash Equivalents Measured on a Recurring Basis at Fair Value

(In thousands)	March 2020		Level 1		Level 2		Level 3
Mutual fund assets	$	22,209	$	22,209	$	—	$	—
Derivative assets:
Foreign currency contracts		36		—		36		—
Total assets at fair value	$	22,245	$	22,209	$	36	$	—
Derivative liabilities:
Foreign currency contracts	$	1,188	$	—	$	1,188	$	—

(In thousands)	December 2019		Level 1		Level 2		Level 3
Mutual fund assets	$	28,227	$	28,227	$	—	$	—
Derivative assets:
Foreign currency contracts		981		—		981		—
Total assets at fair value	$	29,208	$	28,227	$	981	$	—
Derivative liabilities:
Foreign currency contracts	$	429	$	—	$	429	$	—

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, 2020

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, 2020		December 31, 2019
Stock options	$	3,320	$	1,850
Stock awards		5,819		3,618
SARs		7,209		4,058

Share Based Payment Awards Granted in Period

The increases in unrecognized compensation costs for stock options, stock awards and SARs reflected the 2020 grants of:

	Shares
Stock options		81,065
Stock awards (at target)		43,046
SARs		173,754

Inventories (Tables)

3 Months Ended

Mar. 31, 2020

Inventory Disclosure [Abstract]

Composition of Inventories

The composition of inventories at March 31, 2020, and December 31, 2019, was as follows:

(In thousands)	March 31, 2020		December 31, 2019
Finished goods	$	133,853	$	139,785
Raw materials		64,341		63,862
Total inventories	$	198,194	$	203,647

Leases (Tables)

3 Months Ended

Mar. 31, 2020

Leases [Abstract]

Schedule of Lease Cost and Other Information

(In thousands)	March 31, 2020
Lease Cost
Operating lease cost	$	2,721
Short-term lease cost		1,179
Variable lease cost		298
Total lease cost	$	4,198
Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flow from operating leases	$	2,747
Right-of-use assets obtained in exchange for new operating lease liabilities		666

Schedule of Lease Liability Payments

(In thousands)
Undiscounted Cash Flows:
2020 (excluding the three months ended March 31, 2020)	$	7,484
2021		7,632
2022		6,421
2023		5,118
2024		3,060
Subsequent to 2024		16,437
Total Undiscounted Cash Flows	$	46,152
Less: Imputed interest		(9,888	)
Present value	$	36,264
Current operating lease liabilities ⁽¹⁾		8,304
Non-current operating lease liabilities		27,960
Total lease liabilities	$	36,264

(1)

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

Schedule of Operating Leases Weighted Average, Remaining Lease Term and Discount Rate

Weighted-average remaining lease term-operating leases		9 years
Weighted-average discount rate-operating leases			4.3	%

Postretirement Benefit Plans (Tables)

3 Months Ended

Mar. 31, 2020

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
	2020			2019			2020			2019
Interest cost	$	1,421		$	1,661		$	109		$	142
Expected return on plan assets		(2,437	)		(2,361	)		(134	)		(201	)
Amortization of net actuarial loss		1,052			652			19			63
Net periodic (benefit) cost	$	36		$	(48	)	$	(6	)	$	4

Defined Contribution Plan Expenses for Company's Qualified Contribution Plans

Defined contribution plan expenses for the Company’s qualified contribution plans were as follows:

(In thousands)	Three Months Ended March 31
	2020		2019
Retirement savings contributions	$	1,758	$	2,409
Profit sharing contributions		975		882
Total defined contribution plan expenses	$	2,733	$	3,291

Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2020

Earnings Per Share [Abstract]

Computations of Basic and Diluted Earnings Per Share

Below are the computations of basic and diluted earnings per share for the three months ended March 31, 2020 and 2019:

(In thousands, except per share amounts)	Three Months Ended March 31
	2020		2019
Computation of Basic Earnings per Share
Net income attributable to Stepan Company	$	27,545	$	24,984
Weighted-average number of common shares outstanding		23,023		23,099
Basic earnings per share	$	1.20	$	1.08

Computation of Diluted Earnings per Share
Net income attributable to Stepan Company	$	27,545	$	24,984
Weighted-average number of shares outstanding		23,023		23,099
Add weighted-average net shares from assumed exercise of options (under treasury stock method) ⁽¹⁾		102		92
Add weighted-average net shares related to unvested stock awards (under treasury stock method)		1		3
Add weighted-average net shares from assumed exercise of SARs (under treasury stock method) ⁽¹⁾		128		108
Add weighted-average contingently issuable net shares related to performance stock awards (under treasury stock method)		31		30
Weighted-average shares applicable to diluted earnings		23,285		23,332
Diluted earnings per share	$	1.18	$	1.07

Accumulated Other Comprehensive Income (Loss) (Tables)

3 Months Ended

Mar. 31, 2020

Summary of Changes in Accumulated Other Comprehensive Income

Below is the change in the Company’s AOCI balance by component (net of income taxes) for the three months ended March 31, 2020 and 2019:

(In thousands)	Foreign Currency Translation Adjustments			Defined Benefit Pension Plan Adjustments			Cash Flow Hedge Adjustments			Total
Balance at December 31, 2018	$	(108,481	)	$	(33,083	)	$	81		$	(141,483	)
Other comprehensive income before reclassifications		3,687			—			—			3,687
Amounts reclassified from AOCI		—			543			(2	)		541
Remeasurement adjustment related to the Tax Act ⁽¹⁾		—			(5,325	)		—			(5,325	)
Net current-period other comprehensive income		3,687			(4,782	)		(2	)		(1,097	)
Balance at March 31, 2019	$	(104,794	)	$	(37,865	)	$	79		$	(142,580	)

Balance at December 31, 2019	$	(104,037	)	$	(32,205	)	$	72		$	(136,170	)
Other comprehensive income before reclassifications		(41,182	)		808			—			(40,374	)
Amounts reclassified from AOCI		—			—			(2	)		(2	)
Net current-period other comprehensive income		(41,182	)		808			(2	)		(40,376	)
Balance at March 31, 2020	$	(145,219	)	$	(31,397	)	$	70		$	(176,546	)

⁽¹⁾

Summary of Amounts Reclassifications Out of Accumulated Other Comprehensive Income

Information regarding the reclassifications out of AOCI for the three-month periods ended March 31, 2020 and 2019, is displayed below:

(In thousands)	Amount Reclassified from AOCI^(a)
AOCI Components	Three Months Ended March 31						Affected Line Item in Consolidated Statements of Income
	2020			2019
Amortization of defined benefit pension actuarial losses	$	(1,071	)	$	(715	)	(b)
		263			172		Tax benefit
	$	(808	)	$	(543	)	Net of tax
Gains and losses on cash flow hedges:
Foreign exchange contracts		2			2		Cost of sales
		2			2		Total before tax
		—			—		Tax benefit
	$	2		$	2		Net of tax
Total reclassifications for the period	$	(806	)	$	(541	)	Net of tax

^(a)

Amounts in parentheses denote expense to statement of income.

^(b)

This component of accumulated other comprehensive income is included in the computation of net periodic benefit cost (see Note 9 for additional details).

Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

Operating Segment

The Company has three reportable segments: Surfactants, Polymers and Specialty Products. Net sales by segment for the three months ended March 31, 2020 and 2019, were as follows:

(In thousands)	Three Months Ended March 31
	2020		2019
Segment Net Sales
Surfactants	$	327,071	$	349,650
Polymers		106,491		120,179
Specialty Products		16,425		19,341
Total	$	449,987	$	489,170

Reconciliation of Segment Information to Income Before Provision for Income Taxes

Segment operating income and reconciliations of segment operating income to income before provision for income taxes for the three months ended March 31, 2020 and 2019, are summarized below:

(In thousands)	Three Months Ended March 31
	2020			2019
Segment Operating Income
Surfactants	$	36,156		$	37,167
Polymers		7,516			12,105
Specialty Products		3,984			3,131
Segment operating income		47,656			52,403
Business restructuring		(357	)		(733	)
Unallocated corporate expenses ⁽¹⁾		(7,295	)		(21,932	)
Consolidated operating income		40,004			29,738
Interest expense, net		(1,230	)		(1,853	)
Other, net		(3,262	)		3,145
Income before provision for income taxes	$	35,512		$	31,030

⁽¹⁾

Revenue from Contracts with Customers (Tables)

3 Months Ended

Mar. 31, 2020

Revenue From Contract With Customer [Abstract]

Geographic Disaggregation of Net Sales

	For the Three Months Ended March 31, 2020
(In thousands)
	Surfactants		Polymers		Specialty		Total
Geographic Market
North America	$	207,946	$	61,841	$	13,494	$	283,281
Europe		59,660		36,560		2,931		99,151
Latin America		46,510		639		—		47,149
Asia		12,955		7,451		—		20,406
Total	$	327,071	$	106,491	$	16,425	$	449,987

	For the Three Months Ended March 31, 2019
(In thousands)
	Surfactants		Polymers		Specialty		Total
Geographic Market
North America	$	214,297	$	71,323	$	16,025	$	301,645
Europe		71,478		42,105		3,316		116,899
Latin America		50,812		197		—		51,009
Asia		13,063		6,554		—		19,617
Total	$	349,650	$	120,179	$	19,341	$	489,170

Debt (Tables)

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Debt

Debt was comprised of the following at March 31, 2020, and December 31, 2019:

(In thousands)	Maturity Dates	March 31, 2020		December 31, 2019
Unsecured private placement notes
3.95% (net of unamortized debt issuance cost of $305 and $316 for 2020 and 2019, respectively)	2021-2027	$	99,695	$	99,684
3.86% (net of unamortized debt issuance cost of $278 and $291 for 2020 and 2019, respectively)	2020-2025		85,436		85,423
4.86% (net of unamortized debt issuance cost of $137 and $147 for 2020 and 2019, respectively)	2020-2023		37,006		36,996
Total debt		$	222,137	$	222,103
Less current maturities			23,571		23,571
Long-term debt		$	198,566	$	198,532

Other 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, 2020

Other Net in Consolidated Statements of Income

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

(In thousands)	Three Months Ended March 31
	2020			2019
Foreign exchange gains	$	568		$	600
Investment income		75			97
Realized and unrealized gains (losses) on investments		(3,875	)		2,404
Net periodic pension benefit (cost)		(30	)		44
Other, net	$	(3,262	)	$	3,145

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

3 Months Ended

Mar. 31, 2020

Mar. 31, 2019

Issuance of common stock under stock option plan

$ 892,496

$ 808,185

155

1,890

Purchase of common stock

(7,243)

(77)

1,116

(1,360)

Other comprehensive income

27,539

24,978

(40,389)

4,248

Common stock

(6,202)

(5,643)

867,472

832,221

Common Stock [Member]

Issuance of common stock under stock option plan

26,493

26,309

Additional Paid-in Capital [Member]

26,541

26,441

Issuance of common stock under stock option plan

193,135

182,881

152

1,851

2,374

1,179

195,661

185,911

Treasury Stock [Member]

(114,139)

(97,389)

Purchase of common stock

(7,243)

(77)

(1,303)

(2,632)

Accumulated Other Comprehensive Income (Loss) [Member]

(122,685)

(100,098)

Other comprehensive income

(136,170)

(141,483)

(40,376)

4,228

Retained Earnings [Member]

(176,546)

(142,580)

Other

^[1]

(5,325)

922,464

837,107

27,545

24,984

Common stock

(6,202)

(5,643)

Noncontrolling Interest [Member]

943,807

861,773

Other

^[1]

5,325

713

^[2]

760

Other comprehensive income

(6)

^[2]

(6)

(13)

^[2]

Computation of Basic Earnings per Share

$ 694

^[2]

$ 774

[1]	Reflects beginning retained earnings adjustment as a result of the Company’s first quarter 2019 adoption of ASU No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.
[2]	Reflects the noncontrolling interest in the Company’s China joint venture.

Reconciliations of Equity - Reconciliations of Total Equity (Parenthetical) (Detail) - $ / shares	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Number of shares of common stock issued under stock option plan	2,747	38,706
Number of common stock shares purchased	89,225	900
Common stock	$ 0.28	$ 0.25
Common Stock [Member]
Number of shares of common stock issued under stock option plan	2,747	38,706
Additional Paid-in Capital [Member]
Number of shares of common stock issued under stock option plan	2,747	38,706
Treasury Stock [Member]
Number of common stock shares purchased	89,225	900
Retained Earnings [Member]
Common stock	$ 0.28	$ 0.25

Fair Value Measurements - Additional Information (Detail) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Fair Value Disclosures [Abstract]
Unamortized debt issuance cost	$ 720,000	$ 754,000

Fair Value Measurements - Fair Values and Related Carrying Values of Debt (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Carrying value	$ 222,857	$ 222,857
Level 2 [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair value	$ 219,302	$ 226,712

Fair Value Measurements - Financial Assets and Liabilities, Excluding Cash and Cash Equivalents Measured on a Recurring Basis at Fair Value (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Mutual fund assets	$ 22,209	$ 28,227
Derivative assets:
Foreign currency contracts	36	981
Total assets at fair value	22,245	29,208
Derivative liabilities:
Foreign currency contracts	1,188	429
Level 1 [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Mutual fund assets	22,209	28,227
Derivative assets:
Total assets at fair value	22,209	28,227
Level 2 [Member]
Derivative assets:
Foreign currency contracts	36	981
Total assets at fair value	36	981
Derivative liabilities:
Foreign currency contracts	$ 1,188	$ 429

Derivative Instruments - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Derivative notional amount	$ 28,447,000	$ 48,540,368
Minimum [Member]
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Derivative foreign currency exchange contracts durations	1 month
Maximum [Member]
Derivative Instruments And Hedging Activities Disclosures [Line Items]
Derivative foreign currency exchange contracts durations	3 months

Stock-based Compensation - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2020
Stock Option and Stock Appreciation Rights (SARs) Granted Prior to 2017 [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period	2 years
Stock Option and Stock Appreciation Rights (SARS) Granted in 2017 [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period	3 years
Percentage of awards vesting in each year	33.33%
Stock Option [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted average period for amortization of unrecognized compensation cost	2 years 2 months 12 days
Stock Awards [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted average period for amortization of unrecognized compensation cost	2 years 1 month 6 days
SARs [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted average period for amortization of unrecognized compensation cost	2 years 2 months 12 days

Stock-based Compensation - Compensation Expense Recorded for All Stock Options, Stock Awards and SARs (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Compensation expense	$ 1,202	$ 2,596

Stock-based Compensation - Unrecognized Compensation Costs for Stock Options, Stock Awards and SARs (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Stock Option [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation costs for stock options, stock awards and SARs	$ 3,320	$ 1,850
Stock Awards [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation costs for stock options, stock awards and SARs	5,819	3,618
SARs [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation costs for stock options, stock awards and SARs	$ 7,209	$ 4,058

Stock-based Compensation - Share Based Payment Awards Granted in Period (Detail)	3 Months Ended
	Mar. 31, 2020 shares
Stock Option [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock options granted in period	81,065
Stock Awards (at target) [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Awards granted in period	43,046
SARs [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Awards granted in period	173,754

Inventories - Composition of Inventories (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Finished goods	$ 133,853	$ 139,785
Raw materials	64,341	63,862
Total inventories	$ 198,194	$ 203,647

Leases - Additional Information (Detail) $ in Thousands	3 Months Ended
Leases - Additional Information (Detail) $ in Thousands	Mar. 31, 2020 USD ($) Country
Operating Leased Assets [Line Items]
Operating lease, liability	$ 36,264
Number of countries leases reside \| Country	5
Percentage of value of leases reside	97.00%
Minimum [Member]
Operating Leased Assets [Line Items]
Lessee, operating lease, term of contract	1 year
Maximum [Member]
Operating Leased Assets [Line Items]
Lessee, operating lease, term of contract	10 years
Railcars [Member]
Operating Leased Assets [Line Items]
Percentage of lease asset categories	50.00%
Real Estate [Member]
Operating Leased Assets [Line Items]
Percentage of lease asset categories	38.00%
Real Estate [Member] \| Minimum [Member]
Operating Leased Assets [Line Items]
Lessee, operating lease, term of contract	1 year
Real Estate [Member] \| Maximum [Member]
Operating Leased Assets [Line Items]
Lessee, operating lease, term of contract	50 years
Equipment and Storage Tanks [Member]
Operating Leased Assets [Line Items]
Operating lease, liability	$ 731,000
Equipment and Storage Tanks [Member] \| Minimum [Member]
Operating Leased Assets [Line Items]
Lessee, operating lease, term of contract	3 years
Equipment and Storage Tanks [Member] \| Maximum [Member]
Operating Leased Assets [Line Items]
Lessee, operating lease, term of contract	5 years

Leases - Schedule of Lease Cost and Other Information (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2020 USD ($)
Lease Cost
Operating lease cost	$ 2,721
Short-term lease cost	1,179
Variable lease cost	298
Total lease cost	4,198
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flow from operating leases	2,747
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 666

Leases - Schedule of Lease Liability Payments (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Leases [Abstract]
2020 (excluding the three months ended March 31, 2020)	$ 7,484
2021	7,632
2022	6,421
2023	5,118
2024	3,060
Subsequent to 2024	16,437
Total Undiscounted Cash Flows	46,152
Less: Imputed interest	(9,888)
Present value	36,264
Current operating lease liabilities	8,304
Non-current operating lease liabilities	27,960	$ 29,654
Total lease liabilities	$ 36,264

Leases - Schedule of Operating Leases Weighted Average, Remaining Lease Term and Discount Rate (Detail)	Mar. 31, 2020
Leases [Abstract]
Weighted-average remaining lease term-operating leases	9 years
Weighted-average discount rate-operating leases	4.30%

Contingencies - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Site Contingency [Line Items]
Environmental losses accrual	$ 24,900,000		$ 25,900,000
Cash expenditures related to legal and environmental matters	$ 900,000	$ 200,000
Contribution for future response costs	5.00%
Wilmington Site [Member]
Site Contingency [Line Items]
Payment of environmental response costs	$ 2,900,000
Minimum [Member]
Site Contingency [Line Items]
Environmental and legal losses	24,900,000
Maximum [Member]
Site Contingency [Line Items]
Environmental and legal losses	$ 43,000,000.0

Postretirement Benefit Plans - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Defined Benefit Plan Disclosure [Line Items]
Net periodic (benefit) cost	$ 30	$ (44)
United States [Member]
Defined Benefit Plan Disclosure [Line Items]
Interest cost	1,421	1,661
Expected return on plan assets	(2,437)	(2,361)
Amortization of net actuarial loss	1,052	652
Net periodic (benefit) cost	36	(48)
United Kingdom [Member]
Defined Benefit Plan Disclosure [Line Items]
Interest cost	109	142
Expected return on plan assets	(134)	(201)
Amortization of net actuarial loss	19	63
Net periodic (benefit) cost	$ (6)	$ 4

Postretirement Benefit Plans - Defined Benefit Pension Plans - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2020 USD ($)
Defined Contribution Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Balance of trust assets	$ 1,619,000
United States [Member] \| Unfunded Plan [Member] \| Non-qualified Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Expected contributions or payments to defined benefit plans	312,000
Employer contributions or payments	143,000
U.K Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Expected contributions or payments to defined benefit plans	495,000
Employer contributions or payments	$ 168,000

Postretirement Benefit Plans - Defined Contribution Plan Expenses for Company's Qualified Contribution Plans (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Defined Contribution Plan Disclosure [Line Items]
Total defined contribution plan expenses	$ 2,733	$ 3,291
Retirement Savings Contributions [Member]
Defined Contribution Plan Disclosure [Line Items]
Total defined contribution plan expenses	1,758	2,409
Profit Sharing Contributions [Member]
Defined Contribution Plan Disclosure [Line Items]
Total defined contribution plan expenses	$ 975	$ 882

Earnings Per Share - Computations of Basic and Diluted Earnings Per Share (Detail) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands

3 Months Ended

Mar. 31, 2020

Mar. 31, 2019

Net income attributable to Stepan Company

$ 27,545

$ 24,984

Weighted-average number of common shares outstanding

23,023

23,099

Basic earnings per share

$ 1.20

$ 1.08

Net income attributable to Stepan Company

$ 27,545

$ 24,984

Weighted-average number of common shares outstanding

23,023

23,099

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

Weighted-average shares applicable to diluted earnings

23,285

23,332

Diluted earnings per share

$ 1.18

$ 1.07

Stock Option [Member]

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

^[1]

102

Stock Appreciation Rights (SARs) [Member]

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

^[1]

128

108

Performance Stock Award [Member]

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

[1]

Options/SARs to acquire 256,288 and 214,241 shares of Company common stock were excluded from the computations of diluted earnings per share for the three months ended March 31, 2020 and March 31, 2019. Inclusion of the instruments would have had an antidilutive effect on the earnings per share computations.

Earnings Per Share - Computations of Basic and Diluted Earnings Per Share (Parenthetical) (Detail) - shares	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Options and Stock Appreciation Rights (SARs) [Member]
Earnings Per Share Basic [Line Items]
Options/SARs to purchase shares of common stock were excluded from the computations of diluted earnings per share	256,288	214,241

Accumulated Other Comprehensive Income (Loss) - Summary of Changes in Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance	$ 891,783
Other comprehensive income before reclassifications	(40,374)	$ 3,687
Amounts reclassified from AOCI	(2)	541
Remeasurement adjustment related to the Tax Act (1)		(5,325)
Net current-period other comprehensive income	(40,376)	(1,097)
Ending Balance	866,778
Foreign Currency Translation Adjustments [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance	(104,037)	(108,481)
Other comprehensive income before reclassifications	(41,182)	3,687
Net current-period other comprehensive income	(41,182)	3,687
Ending Balance	(145,219)	(104,794)
Defined Benefit Pension Plan Adjustments [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance	(32,205)	(33,083)
Other comprehensive income before reclassifications	808
Amounts reclassified from AOCI		543
Remeasurement adjustment related to the Tax Act (1)		(5,325)
Net current-period other comprehensive income	808	(4,782)
Ending Balance	(31,397)	(37,865)
Cash Flow Hedge Adjustments [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance	72	81
Amounts reclassified from AOCI	(2)	(2)
Net current-period other comprehensive income	(2)	(2)
Ending Balance	70	79
AOCI Attributable to Parent [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance	(136,170)	(141,483)
Ending Balance	$ (176,546)	$ (142,580)

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

3 Months Ended

Mar. 31, 2020

Mar. 31, 2019

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

Income Before Provision for Income Taxes

$ 35,512

$ 31,030

Tax benefit

(7,973)

(6,052)

Cost of Sales

370,718

404,561

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

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

Amortization of defined benefit pension actuarial losses

^[1],[2]

(1,071)

(715)

Tax benefit

^[1]

263

172

Income applicable to common stock

^[1]

(808)

(543)

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

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

Income Before Provision for Income Taxes

^[1]

Income applicable to common stock

^[1]

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

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

Cost of Sales

^[1]

Accumulated Other Comprehensive Income (Loss) [Member]

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

Income applicable to common stock

^[1]

$ (806)

$ (541)

[1]	Amounts in parentheses denote expense to statement of income.
[2]	This component of accumulated other comprehensive income is included in the computation of net periodic benefit cost (see Note 9 for additional details).

Segment Reporting - Additional Information (Detail)	3 Months Ended
Segment Reporting - Additional Information (Detail)	Mar. 31, 2020 Segment
Segment Reporting [Abstract]
Number of reportable segments	3

Segment Reporting - Operating Segment (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Segment Reporting Information [Line Items]
Net sales	$ 449,987	$ 489,170
Surfactants [Member]
Segment Reporting Information [Line Items]
Net sales	327,071	349,650
Polymers [Member]
Segment Reporting Information [Line Items]
Net sales	106,491	120,179
Specialty Products [Member]
Segment Reporting Information [Line Items]
Net sales	$ 16,425	$ 19,341

Segment Reporting - Reconciliation of Segment Information to Income Before Provision for Income Taxes (Detail) - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2020

Mar. 31, 2019

Income before provision for income taxes

$ 40,004

$ 29,738

Business restructuring

(357)

(733)

Interest expense, net

(1,230)

(1,853)

Other, net

(3,262)

3,145

35,512

31,030

Operating Segments [Member]

Operating Segments [Member] | Surfactants [Member]

47,656

52,403

Operating Segments [Member] | Polymers [Member]

36,156

37,167

Operating Segments [Member] | Specialty Products [Member]

7,516

12,105

Segment Reconciling Items [Member]

3,984

3,131

Unallocated corporate expenses

^[1]

$ (7,295)

$ (21,932)

[1]

Revenue from Contracts with Customers - Additional Information (Detail) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Revenue From Contract With Customer [Abstract]
Contract assets	$ 0
Contract liabilities	$ 274,000	$ 350,000

Revenue from Contracts with Customers - Summary of Geographic Disaggregation of Net Sales (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Disaggregation Of Revenue [Line Items]
Net sales	$ 449,987	$ 489,170
Surfactants [Member]
Disaggregation Of Revenue [Line Items]
Net sales	327,071	349,650
Polymers [Member]
Disaggregation Of Revenue [Line Items]
Net sales	106,491	120,179
Specialty Products [Member]
Disaggregation Of Revenue [Line Items]
Net sales	16,425	19,341
North America [Member]
Disaggregation Of Revenue [Line Items]
Net sales	283,281	301,645
North America [Member] \| Surfactants [Member]
Disaggregation Of Revenue [Line Items]
Net sales	207,946	214,297
North America [Member] \| Polymers [Member]
Disaggregation Of Revenue [Line Items]
Net sales	61,841	71,323
North America [Member] \| Specialty Products [Member]
Disaggregation Of Revenue [Line Items]
Net sales	13,494	16,025
Europe [Member]
Disaggregation Of Revenue [Line Items]
Net sales	99,151	116,899
Europe [Member] \| Surfactants [Member]
Disaggregation Of Revenue [Line Items]
Net sales	59,660	71,478
Europe [Member] \| Polymers [Member]
Disaggregation Of Revenue [Line Items]
Net sales	36,560	42,105
Europe [Member] \| Specialty Products [Member]
Disaggregation Of Revenue [Line Items]
Net sales	2,931	3,316
Latin America [Member]
Disaggregation Of Revenue [Line Items]
Net sales	47,149	51,009
Latin America [Member] \| Surfactants [Member]
Disaggregation Of Revenue [Line Items]
Net sales	46,510	50,812
Latin America [Member] \| Polymers [Member]
Disaggregation Of Revenue [Line Items]
Net sales	639	197
Asia [Member]
Disaggregation Of Revenue [Line Items]
Net sales	20,406	19,617
Asia [Member] \| Surfactants [Member]
Disaggregation Of Revenue [Line Items]
Net sales	12,955	13,063
Asia [Member] \| Polymers [Member]
Disaggregation Of Revenue [Line Items]
Net sales	$ 7,451	$ 6,554

Debt - Debt (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
Debt - Debt (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Total debt	$ 222,137	$ 222,103
Less current maturities	23,571	23,571
Long-term debt	198,566	198,532
Unsecured private placement 3.95% note [Member]
Debt Instrument [Line Items]
Total debt	$ 99,695	$ 99,684
Debt instrument interest rate percentage	3.95%	3.95%
Unsecured private placement 3.95% note [Member] \| Minimum [Member]
Debt Instrument [Line Items]
Maturity Dates	2021	2021
Unsecured private placement 3.95% note [Member] \| Maximum [Member]
Debt Instrument [Line Items]
Maturity Dates	2027	2027
Unsecured private placement 3.86% note [Member]
Debt Instrument [Line Items]
Total debt	$ 85,436	$ 85,423
Debt instrument interest rate percentage	3.86%	3.86%
Unsecured private placement 3.86% note [Member] \| Minimum [Member]
Debt Instrument [Line Items]
Maturity Dates	2020	2020
Unsecured private placement 3.86% note [Member] \| Maximum [Member]
Debt Instrument [Line Items]
Maturity Dates	2025	2025
Unsecured private placement 4.86% note [Member]
Debt Instrument [Line Items]
Total debt	$ 37,006	$ 36,996
Debt instrument interest rate percentage	4.86%	4.86%
Unsecured private placement 4.86% note [Member] \| Minimum [Member]
Debt Instrument [Line Items]
Maturity Dates	2020	2020
Unsecured private placement 4.86% note [Member] \| Maximum [Member]
Debt Instrument [Line Items]
Maturity Dates	2023	2023

Debt - Debt (Parenthetical) (Detail) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Unamortized debt issuance cost	$ 720,000	$ 754,000
Unsecured private placement 3.95% note [Member]
Debt Instrument [Line Items]
Unamortized debt issuance cost	305,000	316,000
Unsecured private placement 3.86% note [Member]
Debt Instrument [Line Items]
Unamortized debt issuance cost	278,000	291,000
Unsecured private placement 4.86% note [Member]
Debt Instrument [Line Items]
Unamortized debt issuance cost	$ 137,000	$ 147,000

Debt - Additional Information (Detail) - Multi Currency Revolving Credit Agreement [Member] - USD ($)	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Revolving credit agreement	$ 350,000,000
Credit agreement secured date	Jan. 30, 2023
Letters of Credit Outstanding	$ 4,929,000
Debt Outstanding	0
Unused Revolving credit	345,071,000
Unrestricted retained earnings	$ 298,207,000	$ 283,956,000