Earnings Per Share

12 Months Ended

Dec. 31, 2013

Earnings Per Share [Abstract]

Earnings Per Share

19. Earnings Per Share

Below is the computation of basic and diluted earnings per share for the years ended December 31, 2013, 2012 and 2011. All historical share and per share data reflect the effects of the two-for-one common stock split that was effective December 14, 2012.

(In thousands, except per share amounts)	2013		2012		2011
Computation of Basic Earnings per Share
Net income attributable to Stepan Company	$	72,828	$	79,396	$	71,976
Deduct dividends on preferred stock		43		579		714
Income applicable to common stock	$	72,785	$	78,817	$	71,262
Weighted-average number of shares outstanding		22,621		21,273		20,726
Basic earnings per share	$	3.22	$	3.71	$	3.44
Computation of Diluted Earnings per Share
Net income attributable to Stepan Company	$	72,828	$	79,396	$	71,976
Weighted-average number of shares outstanding		22,621		21,273		20,726
Add weighted-average net shares from assumed exercise of options (under treasury stock method) (1)		215		392		472
Add weighted-average contingently issuable net shares related to performance stock awards (under treasury stock method)		—		12		52
Add weighted-average unvested stock awards (under treasury stock method)		8		6		4
Add weighted-average shares from assumed conversion of convertible preferred stock		80		1,047		1,186
Weighted-average shares applicable to diluted earnings		22,924		22,730		22,440
Diluted earnings per share	$	3.18	$	3.49	$	3.21

⁽¹⁾  Options to purchase 49,815, 16,444 and 91,449 shares of common stock were not included in the computations of diluted earnings per share for the years ended December 31, 2013, 2012 and 2011, respectively. The options’ exercise prices were greater than the average market price for the common stock and their effect would have been antidilutive.