Employee Benefit Plans

9 Months Ended

Sep. 30, 2013

Compensation and Retirement Disclosure [Abstract]

Employee Benefit Plans

Employee Benefit Plans

The Company maintains a non-contributory defined benefit pension plan (sometimes referred to as the “qualified pension plan”) for certain employees. On December 31, 2010, the Company froze the qualified pension plan for its non-union participants and formed a new defined contribution feature within the Badger Meter Employee Savings and Stock Ownership Plan (“ESSOP”) in which each employee received a similar benefit. On December 31, 2011, the Company froze the qualified pension plan for its union participants and included them in the defined contribution feature within the ESSOP. After December 31, 2011, employees received no future benefits under the qualified pension plan as benefits have been frozen and the employees now receive a defined contribution in its place. Employees will continue to earn returns on their frozen balances under the qualified pension plan. The Company also maintains a non-contributory postretirement plan that provides medical benefits for certain of its retirees and eligible dependents in the United States.

The following table sets forth the components of net periodic benefit cost for the three months ended September 30, 2013 and 2012 based on December 31, 2012 and 2011 actuarial measurement dates, respectively:

	Defined pension plan benefits						Other postretirement benefits
(In thousands)	2013			2012			2013		2012
Service cost – benefits earned during the year	$	7		$	12		$	32	$	36
Interest cost on projected benefit obligations	491			564			60		74
Expected return on plan assets	(678		)	(797		)	—		—
Amortization of prior service cost	—			—			34		40
Amortization of net loss	180			184			—		—
Settlement expense	46			—			—		—
Net periodic benefit cost (income)	$	46		$	(37	)	$	126	$	150

The following table sets forth the components of net periodic benefit cost for the nine months ended September 30, 2013 and 2012 based on December 31, 2012 and 2011 actuarial measurement dates, respectively:

	Defined pension plan benefits						Other postretirement benefits
(In thousands)	2013			2012			2013		2012
Service cost – benefits earned during the year	$	22		$	36		$	116	$	107
Interest cost on projected benefit obligations	1,383			1,691			192		221
Expected return on plan assets	(2,057		)	(2,392		)	—		—
Amortization of prior service cost	—			—			120		121
Amortization of net loss	613			553			—		—
Settlement expense	793			—			—		—
Net periodic benefit cost (income)	$	754		$	(112	)	$	428	$	449

The Company disclosed in its financial statements for the year ended December 31, 2012 that it was not required to make a minimum contribution for the 2013 calendar year. The Company continues to believe no additional contributions will be required during 2013.

The Company also disclosed in its financial statements for the year ended December 31, 2012 that it estimated it would pay $0.5 million in other postretirement benefits in 2013 based on actuarial estimates. As of September 30, 2013, $0.2 million of such benefits have been paid. The Company continues to believe that its estimated payments for the full year are reasonable. However, such estimates contain inherent uncertainties because cash payments can vary significantly depending on the timing of postretirement medical claims and the collection of the retirees’ portion of certain costs. Note that the amount of benefits paid in calendar year 2013 will not impact the expense for postretirement benefits for 2013.