Employee Benefit Plans

9 Months Ended

Sep. 30, 2011

Employee Benefit Plans [Abstract]

Employee Benefit Plans

Note 3 Employee Benefit Plans

Prior to 2011, the Company maintained a non-contributory defined benefit pension plan that covered substantially all of its employees in the United States. As of January 1, 2011, the Company froze its pension plan for its non-union participants and formed a new feature within the Badger Meter Employee Savings and Stock Ownership Plan (“ESSOP”) in which each employee receives a similar benefit. No new benefits will accrue in the pension plan for the non-union participants, although they will continue to accrue interest on prior balances. 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, 2011 and 2010 based on December 31, 2010 and 2009 actuarial measurement dates, respectively:

	Defined pension plan benefits						Other postretirement benefits
(In thousands)	2011			2010			2011		2010
Service cost – benefits earned during the year	$	107		$	447		$	37	$	32
Interest cost on projected benefit obligations		605			496			81		81
Expected return on plan assets		(936	)		(864	)		0		0
Amortization of prior service cost		49			50			40		42
Amortization of net loss		448			437			0		0
Net periodic benefit cost	$	273		$	566		$	158	$	155

The following table sets forth the components of net periodic benefit cost for the nine months ended September 30, 2011 and 2010 based on December 31, 2010 and 2009 actuarial measurement dates, respectively:

	Defined pension plan benefits						Other postretirement benefits
(In thousands)	2011			2010			2011		2010
Service cost – benefits earned during the year	$	393		$	1,393		$	111	$	104
Interest cost on projected benefit obligations		1,859			1,855			243		254
Expected return on plan assets		(2,825	)		(2,767	)		0		0
Amortization of prior service cost		147			50			120		124
Amortization of net loss		1,346			1,217			0		0
Net periodic benefit cost	$	920		$	1,748		$	474	$	482

The Company previously disclosed in its financial statements for the year ended December 31, 2010 that it did not expect to make a contribution to its pension plan for the 2011 calendar year. The Company has determined that no additional contribution will be required for 2011, although it may consider voluntary payments to the plan.

The Company disclosed in its financial statements for the year ended December 31, 2010 that it estimated it would pay $0.5 million in other postretirement benefits in 2011 based on actuarial estimates. As of September 30, 2011, $0.3 million of such benefits were paid. The Company believes that its estimated payments for the full year may be slightly less than the prior full-year estimate. 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 2011 will not impact the expense for postretirement benefits for 2011.