Earnings Per Share

12 Months Ended

Dec. 31, 2020

18. Earnings Per Share

Below is the computation of basic and diluted earnings per share for the years ended December 31, 2020, 2019 and 2018:

(In thousands, except per share amounts)	2020		2019		2018
Computation of Basic Earnings per Share
Net income attributable to Stepan Company	$	126,770	$	103,129	$	111,117
Weighted-average number of shares outstanding		22,949		23,054		23,022
Basic earnings per share	$	5.52	$	4.47	$	4.83
Computation of Diluted Earnings per Share
Net income attributable to Stepan Company	$	126,770	$	103,129	$	111,117
Weighted-average number of shares outstanding		22,949		23,054		23,022
Add weighted-average net shares from assumed exercise of options (under treasury share method) ⁽¹⁾		112		97		101
Add weighted-average net shares related to unvested stock awards (under treasury share method)		1		2		3
Add weighted-average net shares from assumed exercise of SARs (under treasury share method)		145		125		110
Add weighted-average contingently issuable net shares related to performance stock awards (under treasury share method)		49		38		89
Weighted-average shares applicable to diluted earnings		23,256		23,316		23,325
Diluted earnings per share	$	5.45	$	4.42	$	4.76

(1)

Options/SARs to purchase 127,434, 107,125 and 50,770 shares of common stock were excluded from the computations of diluted earnings per share for the years ended December 31, 2020, 2019 and 2018, respectively. The options’/SARs’ exercise prices were greater than the average market price for the common stock and inclusion of the instruments would have had antidilutive effect on the computations of the earnings per share.