Company Quick10K Filing
Badger Meter
Price53.83 EPS2
Shares29 P/E34
MCap1,573 P/FCF26
Net Debt-38 EBIT57
TEV1,535 TEV/EBIT27
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-03-31 Filed 2020-04-29
10-K 2019-12-31 Filed 2020-02-21
10-Q 2019-09-30 Filed 2019-10-25
10-Q 2019-06-30 Filed 2019-07-30
10-Q 2019-03-31 Filed 2019-04-30
10-K 2018-12-31 Filed 2019-02-26
10-Q 2018-09-30 Filed 2018-10-24
10-Q 2018-06-30 Filed 2018-07-25
10-Q 2018-03-31 Filed 2018-04-24
10-K 2017-12-31 Filed 2018-03-01
10-Q 2017-09-30 Filed 2017-10-25
10-Q 2017-06-30 Filed 2017-07-26
10-Q 2017-03-31 Filed 2017-04-24
10-K 2016-12-31 Filed 2017-02-28
10-Q 2016-09-30 Filed 2016-10-27
10-Q 2016-06-30 Filed 2016-07-22
10-Q 2016-03-31 Filed 2016-04-26
10-K 2015-12-31 Filed 2016-02-26
10-Q 2015-09-30 Filed 2015-10-29
10-Q 2015-06-30 Filed 2015-07-27
10-Q 2015-03-31 Filed 2015-04-23
10-K 2014-12-31 Filed 2015-03-04
10-Q 2014-09-30 Filed 2014-10-31
10-Q 2014-06-30 Filed 2014-07-24
10-Q 2014-03-31 Filed 2014-04-23
10-K 2013-12-31 Filed 2014-02-20
10-Q 2013-09-30 Filed 2013-10-28
10-Q 2013-06-30 Filed 2013-07-26
10-Q 2013-03-31 Filed 2013-04-24
10-K 2012-12-31 Filed 2013-03-05
10-Q 2012-09-30 Filed 2012-10-30
10-Q 2012-06-30 Filed 2012-08-02
10-Q 2012-03-31 Filed 2012-04-26
10-K 2011-12-31 Filed 2012-03-08
10-Q 2011-09-30 Filed 2011-10-26
10-Q 2011-06-30 Filed 2011-08-03
10-Q 2011-03-31 Filed 2011-04-27
10-K 2010-12-31 Filed 2011-02-28
10-Q 2010-09-30 Filed 2010-10-26
10-Q 2010-06-30 Filed 2010-08-05
10-Q 2010-03-31 Filed 2010-04-23
10-K 2009-12-31 Filed 2010-02-23
8-K 2020-04-24
8-K 2020-04-16
8-K 2020-03-30
8-K 2020-02-26
8-K 2020-02-05
8-K 2019-12-03
8-K 2019-10-17
8-K 2019-07-18
8-K 2019-04-30
8-K 2019-04-17
8-K 2019-03-08
8-K 2019-03-01
8-K 2019-02-27
8-K 2019-02-05
8-K 2018-12-28
8-K 2018-10-17
8-K 2018-09-24
8-K 2018-07-18
8-K 2018-04-27
8-K 2018-04-17
8-K 2018-02-09
8-K 2018-02-05

BMI 10Q Quarterly Report

Part I - Financial Information
Item 1 Financial Statements
Note 1 Basis of Presentation
Note 2 Additional Financial Information Disclosures
Note 3 Employee Benefit Plans
Note 4 Accumulated Other Comprehensive Income (Loss)
Note 5 Acquisition
Note 6 Contingencies, Litigation and Commitments
Note 7 Income Taxes
Note 8 Fair Value Measurements of Financial Instruments
Note 9 Subsequent Events
Note 10 New Pronouncements
Note 11 Revenue Recognition
Note 12 Leases
Item 2 Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3 Quantitative and Qualitative Disclosures About Market Risk
Item 4 Controls and Procedures
Part II - Other Information
Item 1A Risk Factors
Item 2Unregistered Sales of Equity Securities and Use of Proceeds
Item 6 Exhibits
EX-3 bmi-ex3_164.htm
EX-31.1 bmi-ex311_10.htm
EX-31.2 bmi-ex312_9.htm
EX-32 bmi-ex32_6.htm

Badger Meter Earnings 2020-03-31

Balance SheetIncome StatementCash Flow
0.50.40.30.20.10.02012201420172020
Assets, Equity
0.20.20.10.10.00.02012201420172020
Rev, G Profit, Net Income
0.10.10.0-0.0-0.1-0.12012201420172020
Ops, Inv, Fin

bmi-10q_20200331.htm
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Table of Contents

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM 10-Q

 

 

        QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2020                

or

        TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to              

Commission File No. 001-06706

 

BADGER METER, INC.

(Exact name of registrant as specified in its charter)

 

Wisconsin

 

39-0143280

(State or other jurisdiction

of incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

 

 

4545 W. Brown Deer Road

Milwaukee, Wisconsin

 

53233

(Address of principal executive offices)

 

(Zip code)

 

 

(414) 355-0400

 

 

(Registrant’s telephone number, including area code)

 

 

Securities registered pursuant to Section 12(b) of the Act:

 

 

 

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock

BMI

New York Stock Exchange

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b‑2 of the Exchange Act.

 

Large accelerated filer

 

Smaller reporting company

Accelerated filer

 

Emerging growth company

Non‑accelerated filer

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes          No  

As of April 8, 2020, there were 29,117,383 shares of Common stock outstanding with a par value of $1 per share.

 

 

 


Table of Contents

BADGER METER, INC.

Quarterly Report on Form 10-Q for the Period Ended March 31, 2020

Index

 

 

Page No.

 

 

Part I. Financial Information:

 

 

 

 

Item 1

Financial Statements (unaudited):

4

 

 

 

 

Consolidated Condensed Balance Sheets - March 31, 2020 and December 31, 2019

4

 

 

 

 

Consolidated Condensed Statements of Operations - Three Months Ended March 31, 2020 and 2019

5

 

 

 

 

Consolidated Condensed Statements of Comprehensive Income - Three Months Ended March 31, 2020 and 2019

6

 

 

 

 

Consolidated Condensed Statements of Cash Flows - Three Months Ended March 31, 2020 and 2019

7

 

 

 

 

Consolidated Condensed Statements of Shareholders’ Equity – Three Months Ended March 31, 2020 and 2019

8

 

 

 

 

Notes to Unaudited Consolidated Condensed Financial Statements

9

 

 

 

Item 2

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

15

 

 

 

Item 3

Quantitative and Qualitative Disclosures about Market Risk

19

 

 

 

Item 4

Controls and Procedures

19

 

 

Part II. Other Information:

 

 

 

 

Item 1A

Risk Factors

20

 

 

 

Item 2

Unregistered Sales of Equity Securities and Use of Proceeds

21

 

 

 

Item 6

Exhibits

21

 

 

Signatures

22

 

2


Table of Contents

Special Note Regarding Forward Looking Statements

Certain statements contained in this Quarterly Report on Form 10-Q, as well as other information provided from time to time by Badger Meter, Inc. (the “Company” or “Badger Meter”) or its employees, may contain forward looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward looking statements.  The words “anticipate,” “believe,” “estimate,” “expect,” “think,” “should,” “could” and “objective” or similar expressions are intended to identify forward looking statements.  All such forward looking statements are based on the Company’s then current views and assumptions and involve risks and uncertainties.  Some risks and uncertainties that could cause actual results to differ materially from those expressed or implied in forward looking statements include those described in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 and in Part II, Item 1A of this Quarterly Report on Form 10-Q.

 

All of these factors are beyond the Company's control to varying degrees.  Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward looking statements contained in this Quarterly Report on Form 10-Q and are cautioned not to place undue reliance on such forward looking statements.  The forward looking statements made in this document are made only as of the date of this document and the Company assumes no obligation, and disclaims any obligation, to update any such forward looking statements to reflect subsequent events or circumstances.

3


Table of Contents

Part I – Financial Information

Item 1  Financial Statements

BADGER METER, INC.

Consolidated Condensed Balance Sheets

 

 

 

March 31,

 

 

December 31,

 

 

 

(Unaudited)

 

 

 

 

 

 

 

(In thousands)

 

 

 

2020

 

 

2019

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

70,376

 

 

$

48,871

 

Receivables

 

 

59,164

 

 

 

61,365

 

Inventories:

 

 

 

 

 

 

 

 

Finished goods

 

 

19,469

 

 

 

22,946

 

Work in process

 

 

16,776

 

 

 

17,728

 

Raw materials

 

 

38,185

 

 

 

41,274

 

Total inventories

 

 

74,430

 

 

 

81,948

 

Prepaid expenses and other current assets

 

 

7,459

 

 

 

7,910

 

Total current assets

 

 

211,429

 

 

 

200,094

 

Property, plant and equipment, at cost

 

 

211,457

 

 

 

209,825

 

Less accumulated depreciation

 

 

(126,887

)

 

 

(124,064

)

Net property, plant and equipment

 

 

84,570

 

 

 

85,761

 

Intangible assets, at cost less accumulated amortization

 

 

46,396

 

 

 

48,163

 

Other assets

 

 

15,288

 

 

 

15,875

 

Deferred income taxes

 

 

2,015

 

 

 

742

 

Goodwill

 

 

71,258

 

 

 

71,258

 

Total assets

 

$

430,956

 

 

$

421,893

 

Liabilities and shareholders’ equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Short-term debt

 

$

4,400

 

 

$

4,480

 

Payables

 

 

35,915

 

 

 

31,523

 

Accrued compensation and employee benefits

 

 

9,181

 

 

 

12,754

 

Warranty and after-sale costs

 

 

5,981

 

 

 

5,583

 

Other current liabilities

 

 

4,979

 

 

 

2,907

 

Total current liabilities

 

 

60,456

 

 

 

57,247

 

Other long-term liabilities

 

 

23,093

 

 

 

22,980

 

Deferred income taxes

 

 

2,428

 

 

 

876

 

Accrued non-pension postretirement benefits

 

 

5,721

 

 

 

5,711

 

Other accrued employee benefits

 

 

3,537

 

 

 

4,011

 

Commitments and contingencies (Note 6)

 

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

 

 

 

Common stock

 

 

37,220

 

 

 

37,200

 

Capital in excess of par value

 

 

42,690

 

 

 

41,956

 

Reinvested earnings

 

 

292,785

 

 

 

285,879

 

Accumulated other comprehensive (loss) income

 

 

(201

)

 

 

425

 

Less: Employee benefit stock

 

 

(154

)

 

 

(154

)

    Treasury stock, at cost

 

 

(36,619

)

 

 

(34,238

)

Total shareholders’ equity

 

 

335,721

 

 

 

331,068

 

Total liabilities and shareholders’ equity

 

$

430,956

 

 

$

421,893

 

 

See accompanying notes to unaudited consolidated condensed financial statements.

4


Table of Contents

BADGER METER, INC.

Consolidated Condensed Statements of Operations

 

 

 

Three Months Ended

March 31,

 

 

 

(Unaudited)

 

 

 

(In thousands except share and per share amounts)

 

 

 

2020

 

 

2019

 

Net sales

 

$

108,508

 

 

$

104,881

 

Cost of sales

 

 

65,186

 

 

 

64,424

 

Gross margin

 

 

43,322

 

 

 

40,457

 

Selling, engineering and administration

 

 

27,307

 

 

 

26,130

 

Operating earnings

 

 

16,015

 

 

 

14,327

 

Interest expense, net

 

 

31

 

 

 

129

 

Other pension and postretirement costs

 

 

44

 

 

 

47

 

Earnings before income taxes

 

 

15,940

 

 

 

14,151

 

Provision for income taxes

 

 

4,086

 

 

 

3,327

 

Net earnings

 

$

11,854

 

 

$

10,824

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

Basic

 

$

0.41

 

 

$

0.37

 

Diluted

 

$

0.41

 

 

$

0.37

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share

 

$

0.17

 

 

$

0.15

 

 

 

 

 

 

 

 

 

 

Shares used in computation of earnings per share:

 

 

 

 

 

 

 

 

Basic

 

 

29,042,158

 

 

 

29,028,964

 

Impact of dilutive securities

 

 

181,757

 

 

 

209,660

 

Diluted

 

 

29,223,915

 

 

 

29,238,624

 

 

See accompanying notes to unaudited consolidated condensed financial statements.

5


Table of Contents

BADGER METER, INC.

Consolidated Condensed Statements of Comprehensive Income

 

 

 

Three Months Ended

March 31,

 

 

 

(Unaudited)

 

 

 

(In thousands)

 

 

 

2020

 

 

2019

 

Net earnings

 

$

11,854

 

 

$

10,824

 

Other comprehensive income:

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

(627

)

 

 

(257

)

Pension and postretirement benefits, net of tax

 

 

1

 

 

 

(12

)

Comprehensive income

 

$

11,228

 

 

$

10,555

 

 

See accompanying notes to unaudited consolidated condensed financial statements.

6


Table of Contents

BADGER METER, INC.

Consolidated Condensed Statements of Cash Flows

 

 

 

Three Months Ended

March 31,

 

 

 

(Unaudited)

(In thousands)

 

 

 

2020

 

 

2019

 

Operating activities:

 

 

 

 

 

 

 

 

Net earnings

 

$

11,854

 

 

$

10,824

 

Adjustments to reconcile net earnings to net cash provided by operations:

 

 

 

 

 

 

 

 

Depreciation

 

 

2,975

 

 

 

2,978

 

Amortization

 

 

3,256

 

 

 

3,264

 

Deferred income taxes

 

 

392

 

 

 

(1

)

Noncurrent employee benefits

 

 

88

 

 

 

117

 

Stock-based compensation expense

 

 

307

 

 

 

265

 

Changes in:

 

 

 

 

 

 

 

 

Receivables

 

 

1,385

 

 

 

(1,943

)

Inventories

 

 

7,437

 

 

 

166

 

Payables

 

 

4,517

 

 

 

4,540

 

Prepaid expenses and other current assets

 

 

(609

)

 

 

(2,101

)

Other liabilities

 

 

(1,064

)

 

 

(294

)

Total adjustments

 

 

18,684

 

 

 

6,991

 

Net cash provided by operations

 

 

30,538

 

 

 

17,815

 

Investing activities:

 

 

 

 

 

 

 

 

Property, plant and equipment expenditures

 

 

(1,942

)

 

 

(2,160

)

Net cash used for investing activities

 

 

(1,942

)

 

 

(2,160

)

Financing activities:

 

 

 

 

 

 

 

 

Net decrease in short-term debt

 

 

-

 

 

 

(7,000

)

Payment of contingent acquisition consideration

 

 

-

 

 

 

(1,000

)

Dividends paid

 

 

(4,938

)

 

 

(4,357

)

Proceeds from exercise of stock options

 

 

478

 

 

 

471

 

Repurchase of treasury stock

 

 

(2,467

)

 

 

(1,873

)

Issuance of treasury stock

 

 

55

 

 

 

52

 

Net cash used for financing activities

 

 

(6,872

)

 

 

(13,707

)

Effect of foreign exchange rates on cash

 

 

(219

)

 

 

(1

)

Increase in cash and cash equivalents

 

 

21,505

 

 

 

1,947

 

Cash and cash equivalents – beginning of period

 

 

48,871

 

 

 

13,086

 

Cash and cash equivalents – end of period

 

$

70,376

 

 

$

15,033

 

 

See accompanying notes to unaudited consolidated condensed financial statements.

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Table of Contents

BADGER METER, INC.

Consolidated Condensed Statements of Shareholders’ Equity

 

 

 

Quarter-to-date ended March 31,

 

 

 

Common

Stock at $1

par value*

 

 

Capital in

excess of

par value

 

 

Reinvested

earnings

 

 

Accumulated

other

comprehensive

income

(loss)

 

 

Employee

benefit

stock

 

 

Treasury

stock (at cost)

 

 

Total

 

 

 

(Unaudited)

 

 

 

(In thousands except share and per share amounts)

 

Balance, December 31, 2018

 

$

37,198

 

 

$

38,082

 

 

$

257,313

 

 

$

580

 

 

$

(306

)

 

$

(29,364

)

 

$

303,503

 

Net earnings

 

 

-

 

 

 

-

 

 

 

10,824

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

10,824

 

Pension and postretirement benefits

   (net of $4 tax effect)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(12

)

 

 

-

 

 

 

-

 

 

 

(12

)

Foreign currency translation

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(257

)

 

 

-

 

 

 

-

 

 

 

(257

)

Cash dividends of $0.15 per share

 

 

-

 

 

 

-

 

 

 

(4,360

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(4,360

)

Stock options exercised

 

 

2

 

 

 

397

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

72

 

 

 

471

 

Stock-based compensation

 

 

-

 

 

 

265

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

265

 

Purchase of common stock for treasury stock

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,873

)

 

 

(1,873

)

Issuance of treasury stock (9 shares)

 

 

-

 

 

 

12

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

40

 

 

 

52

 

Balance, March 31, 2019

 

$

37,200

 

 

$

38,756

 

 

$

263,777

 

 

$

311

 

 

$

(306

)

 

$

(31,125

)

 

$

308,613

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2019

 

$

37,200

 

 

$

41,956

 

 

$

285,879

 

 

$

425

 

 

$

(154

)

 

$

(34,238

)

 

$

331,068

 

Net earnings

 

 

-

 

 

 

-

 

 

 

11,854

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

11,854

 

Pension and postretirement benefits

   (net of ($1) tax effect)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1

 

 

 

-

 

 

 

-

 

 

 

1

 

Foreign currency translation

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(627

)

 

 

-

 

 

 

-

 

 

 

(627

)

Cash dividends of $0.17 per share

 

 

-

 

 

 

-

 

 

 

(4,948

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(4,948

)

Stock options exercised

 

 

20

 

 

 

438

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

20

 

 

 

478

 

Stock-based compensation

 

 

-

 

 

 

307

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

307

 

Purchase of common stock for treasury stock

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(2,467

)

 

 

(2,467

)

Issuance of treasury stock (15 shares)

 

 

-

 

 

 

(11

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

66

 

 

 

55

 

Balance, March 31, 2020

 

$

37,220

 

 

$

42,690

 

 

$

292,785

 

 

$

(201

)

 

$

(154

)

 

$

(36,619

)

 

$

335,721

 

 

*

Each common share of stock equals $1 par value; therefore, the number of common shares is the same as the dollar value.

See accompanying notes to unaudited consolidated condensed financial statements.

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Table of Contents

BADGER METER, INC.

Notes to Unaudited Consolidated Condensed Financial Statements

Note 1   Basis of Presentation

In the opinion of management, the accompanying unaudited consolidated condensed financial statements of Badger Meter contain all adjustments (consisting only of normal recurring accruals except as otherwise discussed) necessary to present fairly the Company’s consolidated condensed financial position at March 31, 2020 and December 31, 2019, results of operations, comprehensive income, cash flows and statements of shareholders’ equity for the three-month periods ended March 31, 2020 and 2019.  The results of operations for any interim period are not necessarily indicative of the results to be expected for the full year.

The preparation of financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes.  Actual results could differ from those estimates.

Note 2   Additional Financial Information Disclosures

The consolidated condensed balance sheet at December 31, 2019 was derived from amounts included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.  Refer to the notes to consolidated financial statements included in that report for a description of the Company’s accounting policies and for additional details of the Company’s financial condition.  The details in those notes have not changed except as discussed below and as a result of normal adjustments in the interim.

Cash Equivalents

 The Company considers all highly liquid investments with original maturities of ninety days or less to be cash equivalents.

Warranty and After-Sale Costs

The Company estimates and records provisions for warranties and other after-sale costs in the period in which the sale is recorded, based on a lag factor and historical warranty claim experience.  After-sale costs represent a variety of activities outside of the written warranty policy, such as investigation of unanticipated problems after the customer has installed the product, or analysis of water quality issues.  Changes in the Company’s warranty and after-sale costs reserve are as follows:

 

 

 

Three months ended

March 31,

 

 

(In thousands)

 

2020

 

 

2019

 

 

Balance at beginning of period

 

$

5,583

 

 

$

4,206

 

 

Net additions charged to earnings

 

 

1,161

 

 

 

465

 

 

Costs incurred

 

 

(763

)

 

 

(353

)

 

Balance at end of period

 

$

5,981

 

 

$

4,318

 

 

 

Note 3   Employee Benefit Plans

The Company maintains supplemental non-qualified plans for certain officers and other key employees, and an Employee Savings and Stock Ownership Plan for the majority of the U.S. employees.

The Company additionally has a postretirement healthcare benefit plan that provides medical benefits for certain U.S. retirees and eligible dependents hired prior to November 1, 2004.  Employees are eligible to receive postretirement healthcare benefits upon meeting certain age and service requirements.  No employees hired after October 31, 2004 are eligible to receive these benefits.  This plan requires employee contributions to offset benefit costs.

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Table of Contents

The following table sets forth the components of net periodic benefit cost for the three months ended March 31, 2020 and 2019 based on December 31, 2019 and 2018 actuarial measurement dates, respectively:

 

 

 

Defined

pension plan

benefits

 

 

Other

postretirement

benefits

 

(In thousands)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Service cost – benefits earned during the year

 

$

13

 

 

$

37

 

 

$

31

 

 

$

29

 

Interest cost on projected benefit obligations

 

 

2

 

 

 

10

 

 

 

41

 

 

 

53

 

Amortization of net loss (benefit)

 

 

1

 

 

 

9

 

 

 

-

 

 

 

(25

)

Net periodic benefit cost

 

$

16

 

 

$

56

 

 

$

72

 

 

$

57

 

 

The Company disclosed in its financial statements for the year ended December 31, 2019 that it estimated it would pay $0.4 million in other postretirement benefits in 2020 based on actuarial estimates.  As of March 31, 2020, $0.1 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.  The amount of benefits paid in calendar year 2020 will not impact the expense for postretirement benefits for 2020.

Note 4   Accumulated Other Comprehensive Income (Loss)

Components of and changes in accumulated other comprehensive income (loss) at March 31, 2020 are as follows:

 

(In thousands)

 

Unrecognized

pension and

postretirement

benefits

 

 

Foreign currency

 

 

Total

 

Balance at beginning of period

 

$

263

 

 

$

162

 

 

$

425

 

Other comprehensive (loss) before reclassifications

 

 

-