Stepan Co. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Stepan Co. has filed its 2023 10-K report detailing financial performance and business operations.</b>

AI Summary

STEPAN CO (SCL) filed a Annual Report (10-K) with the SEC on February 29, 2024. Stepan Co. filed its 10-K report for the fiscal year ending December 31, 2023. The filing covers the company's financial performance and business operations. Key segments include Specialty Products and Polymers. The report details various financial instruments and fair value inputs. Acquisitions in 2021, such as the Fermentation Plant and INVISTA Aromatic Polyester Polyol Business, are referenced.

Why It Matters

For investors and stakeholders tracking STEPAN CO, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Stepan Co.'s financial health and strategic initiatives for the fiscal year 2023, crucial for investors assessing the company's performance and future outlook. The detailed segment reporting and information on past acquisitions offer insights into the company's growth strategies and operational diversification within the chemical industry.

Risk Assessment

Risk Level: medium — STEPAN CO shows moderate risk based on this filing. The filing is a standard 10-K, which is a comprehensive annual report. While it contains detailed financial information, it does not highlight any immediate or severe risks beyond those typically associated with a publicly traded company in the chemical sector.

Analyst Insight

Review the detailed segment performance and financial disclosures within the 10-K to understand Stepan Co.'s operational strengths and potential areas for growth or concern.

Revenue Breakdown

Key Numbers

• 20231231 — Fiscal Year End (Conformed period of report)
• 20240229 — Filing Date (Filed as of date)
• 135 — Public Document Count (Number of documents in the filing)
• 2021-02-02 — Fermentation Plant Acquisition (Date of a significant acquisition)
• 2021-01-29 — INVISTAAromaticPolyesterPolyolBusiness Acquisition (Date of another significant acquisition)

Key Players & Entities

• STEPAN CO (company) — Filer name
• SCL (company) — Ticker symbol
• 20231231 (date) — Conformed period of report
• 20240229 (date) — Filed as of date
• SOAP, DETERGENT, CLEANING PREPARATIONS, PERFUMES, COSMETICS [2840] (industry) — Standard Industrial Classification
• DE (jurisdiction) — State of incorporation
• 19840108 (date) — Date of name change from STEPAN CHEMICAL CO /DE/
• 2021-02-02 (date) — Fermentation Plant Acquisition date

FAQ

Key Dates

• 2023-12-31: Fiscal Year End — Reporting period for the 10-K
• 2024-02-29: Filing Date — Date the 10-K was officially submitted
• 2021-02-02: Fermentation Plant Acquisition — Significant business acquisition

Key Financial Figures

• $1 — nge on Which Registered Common Stock, $1 par value SCL New York Stock Exchan
• $8.5 million — capital expenditures by the Company of $8.5 million during 2023. These expenditures represe
• $38.3 million — ufacturing locations were approximately $38.3 million in 2023. In addition, in response to re

Filing Documents

• scl-20231231.htm (10-K) — 4503KB
• scl-ex10_22.htm (EX-10.22) — 88KB
• scl-ex21.htm (EX-21) — 20KB
• scl-ex23.htm (EX-23) — 4KB
• scl-ex24.htm (EX-24) — 14KB
• scl-ex31_1.htm (EX-31.1) — 13KB
• scl-ex31_2.htm (EX-31.2) — 13KB
• scl-ex32.htm (EX-32) — 8KB
• scl-ex97.htm (EX-97) — 43KB
• img94342223_0.jpg (GRAPHIC) — 307KB
• 0000950170-24-022778.txt (&nbsp;) — 21926KB
• scl-20231231.xsd (EX-101.SCH) — 2459KB
• scl-20231231_htm.xml (XML) — 5118KB

, Items 10-14

Part III, Items 10-14 Portions of the Proxy Statement for Annual Meeting of Stockholders expected to be held April 30, 2024. * Based on reported ownership by all directors and executive officers at June 30, 2023 . STEPAN COMPANY ANNUAL REPORT ON FORM 10-K December 31, 2023 Page No PART I Item 1.

Business

Business 3 Information About our Executive Officers 5 Item 1A.

Risk Factors

Risk Factors 7 Item 1B. Unresolved Staff Comments 16 Item 1C. Cybersecurity 16 Item 2.

Properties

Properties 17 Item 3.

Legal Proceedings

Legal Proceedings 18 Item 4. Mine Safety Disclosures 19 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 20 Item 6. (Removed and Reserved) 21 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 22 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 37 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 38 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 83 Item 9A.

Controls and Procedures

Controls and Procedures 83 Item 9B. Other Information 84 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 84 PART III Item 10. Directors, Executive Officers and Corporate Governance 85 Item 11.

Executive Compensation

Executive Compensation 85 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 85 Item 13. Certain Relationships and Related Transactions, and Director Independence 85 Item 14. Principal Accountant Fees and Services 85 PART IV Item 15. Exhibits, Financial Statement Schedules 85 Item 16. Form 10-K Summary 89

SIGNATURES

SIGNATURES 90 SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS Certain statements in this Annual Report on Form 10-K, other than purely historical information, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act). These statements include statements about Stepan Company's and its subsidiaries' (the Company) plans, objectives, strategies, financial performance and outlook, trends, the amount and timing of future cash distributions, prospects or future events and involve known and unknown risks that are difficult to predict. As a result, the Company's actual financial results, performance, achievements or prospects may differ materially from those expressed or implied by these forward-looking statements. In some cases, forward-looking statements can be identified by the use of words such as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "guidance," "predict," "potential," "continue," "likely," "will," "would," "should," "illustrative" and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by the Company and its management based on their knowledge and understanding of the business and industry, are inherently uncertain. These statements are not guarantees of future performance, and stockholders should not place undue reliance on forward-looking statements. There are a number of risks, uncertainties and other important factors, many of which are beyond the Company's control, that could cause the Company's actual results to differ materially from the forward-looking statements contained in this Annual Report on Form 10-K. Such risks, uncertainties and other i

View Full Filing

View this 10-K filing on SEC EDGAR