Accumulated Other Comprehensive Income (Loss) (Tables)

9 Months Ended

Sep. 30, 2025

Summary of Changes in Accumulated Other Comprehensive Income (Loss)

Below is the change in the Company’s accumulated other comprehensive income (loss) (AOCI) balance by component (net of income taxes) for the three and nine months ended September 30, 2025 and 2024:


(In thousands)	Foreign Currency Translation Adjustments			Defined Benefit Pension Plan Adjustments			Cash Flow Hedge Adjustments			Total
Balance at June 30, 2024	$	(148,374	)	$	(20,293	)	$	6,767		$	(161,900	)
Other comprehensive income (loss) before reclassifications		12,880			—			(2,760	)		10,120
Amounts reclassified from AOCI		—			60			(2	)		58
Net current-period other comprehensive income (loss)		12,880			60			(2,762	)		10,178
Balance at September 30, 2024	$	(135,494	)	$	(20,233	)	$	4,005		$	(151,722	)

Balance at June 30, 2025	$	(117,109	)	$	(25,882	)	$	3,072		$	(139,919	)
Other comprehensive income (loss) before reclassifications		1,798			—			(544	)		1,254
Amounts reclassified from AOCI		—			59			(2	)		57
Net current-period other comprehensive income (loss)		1,798			59			(546	)		1,311
Balance at September 30, 2025	$	(115,311	)	$	(25,823	)	$	2,526		$	(138,608	)

Balance at December 31, 2023	$	(116,412	)	$	(20,408	)	$	6,218		$	(130,602	)
Other comprehensive income ( loss) before reclassifications		(19,082	)		—			(2,207	)		(21,289	)
Amounts reclassified from AOCI		—			175			(6	)		169
Net current-period other comprehensive income (loss)		(19,082	)		175			(2,213	)		(21,120	)
Balance at September 30, 2024	$	(135,494	)	$	(20,233	)	$	4,005		$	(151,722	)

Balance at December 31, 2024	$	(175,802	)	$	(25,996	)	$	4,960		$	(196,838	)
Other comprehensive income (loss) before reclassifications		60,491			—			(2,427	)		58,064
Amounts reclassified from AOCI		—			173			(7	)		166
Net current-period other comprehensive income (loss)		60,491			173			(2,434	)		58,230
Balance at September 30, 2025	$	(115,311	)	$	(25,823	)	$	2,526		$	(138,608	)

Summary of Amounts Reclassifications Out of Accumulated Other Comprehensive Income

Information regarding the reclassifications out of AOCI for the three and nine months ended September 30, 2025 and 2024, is displayed below:


(In thousands)	Amount Reclassified from AOCI (1)
AOCI Components	Three Months Ended September 30,						Nine Months Ended September 30,						Affected Line Item in Condensed Consolidated Statements of Income
	2025			2024			2025			2024
Amortization of defined benefit pension actuarial losses	$	(79	)	$	(79	)	$	(230	)	$	(233	)	(2)
		20			19			57			58		Tax benefit
	$	(59	)	$	(60	)	$	(173	)	$	(175	)	Net of tax
Gains and losses on cash flow hedges:
Foreign exchange contracts		2			2			7			6		Cost of sales
		2			2			7			6		Total before tax
		—			—			—			—		Tax benefit
	$	2		$	2		$	7		$	6		Net of tax
Total reclassifications for the period	$	(57	)	$	(58	)	$	(166	)	$	(169	)	Net of tax

(1)

Amounts in parentheses denote expense to the Company’s Condensed Consolidated Statements of Income.

(2)

This component of accumulated other comprehensive income is included in the computation of net periodic benefit cost. See Note 9, Postretirement Benefit Plans, of the notes to the Company’s condensed consolidated financial statements (included in Item 1 of this Form 10-Q) for additional details.

STEPAN CO 10-Q