Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2018

Computation of Basic and Diluted Earnings Per Share

Below is the computation of basic and diluted earnings per share for the years ended December 31, 2018, 2017 and 2016.

(In thousands, except per share amounts)	2018		2017		2016
Computation of Basic Earnings per Share
Net income attributable to Stepan Company	$	112,762	$	91,578	$	86,191
Weighted-average number of shares outstanding		23,022		22,946		22,793
Basic earnings per share	$	4.90	$	3.99	$	3.78
Computation of Diluted Earnings per Share
Net income attributable to Stepan Company	$	112,762	$	91,578	$	86,191
Weighted-average number of shares outstanding		23,022		22,946		22,793
Add weighted-average net shares from assumed exercise of options (under treasury share method) ^(a)		101		161		159
Add weighted-average net shares related to unvested stock awards (under treasury share method)		3		8		6
Add weighted-average net shares from assumed exercise of SARs (under treasury share method)		110		142		68
Add weighted-average contingently issuable net shares related to performance stock awards (under treasury share method)		89		120		68
Weighted-average shares applicable to diluted earnings		23,325		23,377		23,094
Diluted earnings per share	$	4.83	$	3.92	$	3.73

(a)

Options/SARs to purchase 50,770, 18,630 and 43,715 shares of common stock were not included in the computations of diluted earnings per share for the years ended December 31, 2018, 2017 and 2016, respectively. The options’/SARs’ exercise prices were greater than the average market price for the common stock and the effect of the options/SARs on earnings per share would have been antidilutive.