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Change In Method of Accounting for Inventory Valuation (Tables)

9 Months Ended

Sep. 30, 2019

Change In Accounting Estimate [Abstract]

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

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

Income Statement

(In thousands, except per share amounts)		Three Months Ended September 30, 2018
		As originally reported under LIFO				Effect of change				As adjusted under FIFO
Cost of Sales		$	423,872			$	549			$	424,421
Gross Profit			84,125				(549	)			83,576
Operating Income			27,694				(549	)			27,145
Income Before Provision for Income Taxes			25,243				(549	)			24,694
Provision for Income Taxes			3,075				(135	)			2,940
Net Income			22,168				(414	)			21,754
Net Income Attributable to Stepan Company			22,168				(414	)			21,754
Net Income Per Diluted Common Share Attributable to Stepan Company		$	0.95			$	(0.02	)		$	0.93

(In thousands, except per share amounts)		Nine Months Ended September 30, 2018
		As originally reported under LIFO				Effect of change				As adjusted under FIFO
Cost of Sales		$	1,264,223			$	(1,780	)		$	1,262,443
Gross Profit			262,975				1,780				264,755
Operating Income			112,034				1,780				113,814
Income Before Provision for Income Taxes			105,404				1,780				107,184
Provision for Income Taxes			19,597				436				20,033
Net Income			85,807				1,344				87,151
Net Income Attributable to Stepan Company			85,816				1,344				87,160
Net Income Per Diluted Common Share Attributable to Stepan Company		$	3.68			$	0.06			$	3.74

Balance Sheet

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

Statement of Cash Flows

(In thousands)		Nine Months Ended September 30, 2018
		As originally reported under LIFO				Effect of change				As adjusted under FIFO
Net Income		$	85,807			$	1,344			$	87,151
Deferred Income Taxes			6,410				436				6,846
Change in Assets and Liabilities:
Inventories			(21,586	)			(1,780	)			(23,366	)

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

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

Income Statement

(In thousands, except per share amounts)		Three Months Ended September 30, 2019
		As reported under FIFO				Effect of change				As computed under LIFO
Cost of Sales		$	374,180			$	(1,000	)		$	373,180
Gross Profit			77,402				1,000				78,402
Operating Income			27,966				1,000				28,966
Income Before Provision for Income Taxes			27,449				1,000				28,449
Provision for Income Taxes			1,569				246				1,815
Net Income			25,880				754				26,634
Net Income Attributable to Stepan Company			25,889				754				26,643
Net Income Per Diluted Common Share Attributable to Stepan Company		$	1.11			$	0.03			$	1.14

(In thousands, except per share amounts)		Nine Months Ended September 30, 2019
		As reported under FIFO				Effect of change				As computed under LIFO
Cost of Sales		$	1,158,785			$	(3,000	)		$	1,155,785
Gross Profit			254,970				3,000				257,970
Operating Income			98,769				3,000				101,769
Income Before Provision for Income Taxes			98,013				3,000				101,013
Provision for Income Taxes			16,945				738				17,683
Net Income			81,068				2,262				83,330
Net Income Attributable to Stepan Company			81,091				2,262				83,353
Net Income Per Diluted Common Share Attributable to Stepan Company		$	3.48			$	0.10			$	3.58

Balance Sheet

(In thousands)		September 30, 2019
		As reported under FIFO				Effect of change				As computed under LIFO
Inventories		$	203,303			$	(28,363	)		$	174,940
Other Non-Current Assets			10,985				1,415				12,400
Total Assets			1,518,370				(26,948	)			1,491,422
Deferred Income Taxes		$	25,218			$	(5,551	)		$	19,667
Retained Earnings			906,612				(21,397	)			885,215
Total Liabilities and Equity			1,518,370				(26,948	)			1,491,422

Statement of Cash Flows

(In thousands)		Nine Months Ended September 30, 2019
		As reported under FIFO				Effect of change				As computed under LIFO
Net Income		$	81,068			$	2,262			$	83,330
Deferred Income Taxes			(2,291	)			738				(1,553	)
Change in Assets and Liabilities:
Inventories			25,879				(3,000	)			22,879

X

- Definition

Summary of current year financial statement line items if company does not changed method of accounting for inventories from LIFO to FIFO.

+ References

No definition available.

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- Definition

Tabular disclosure of prior period adjustments to previously issued financial statements including (1) the effect of the correction on each financial statement line item and any per-share amounts affected for each prior period presented (2) the cumulative effect of the change on retained earnings or other appropriate components of equity or net assets in the statement of financial position, as of the beginning of the earliest period presented, and (3) the effect of the prior period adjustments (both gross and net of applicable income tax) on the net income of each prior period presented in the entity's annual report for the year in which the adjustments are made.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22663-107794

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22644-107794

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22658-107794

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