Employer Sponsored Benefit Plans

9 Months Ended

Sep. 30, 2011

Employer Sponsored Benefit Plans

10. Employer Sponsored Benefit Plans

As of September 30, 2011, the Company maintains a defined benefit pension plan that covers certain domestic Lydall employees (“domestic pension plan”) that is closed to new employees and benefits are no longer accruing. The domestic pension plan is noncontributory and benefits are based on either years of service or eligible compensation paid while a participant is in the plan.  The Company’s funding policy is to fund not less than the ERISA minimum funding standard and not more than the maximum amount that can be deducted for federal income tax purposes.  The Company expects to contribute approximately $3.4 million in cash to its domestic pension plan in 2011. Contributions of $1.0 million were made during the third quarter of 2011 and $1.8 million for the nine months ended September 30, 2011.  Contributions of $0.9 million were made during the third quarter of 2010 and $1.3 million for the nine months ended September 30, 2010.

The following is a summary of the components of net periodic benefit cost for the domestic pension plan for the quarters and nine months ended September 30, 2011 and 2010:

	Quarter Ended						Nine Months Ended
	September 30,						September 30,
In thousands	2011			2010			2011			2010
Components of net periodic benefit cost:
Interest cost	$	646		$	642		$	1,938		$	1,926
Expected return on assets		(662	)		(584	)		(1,986	)		(1,750	)
Amortization of actuarial loss		140			144			420			434
Net periodic benefit cost	$	124		$	202		$	372		$	610