Employer Sponsored Benefit Plans

6 Months Ended

Jun. 30, 2012

Employer Sponsored Benefit Plans

9. Employer Sponsored Benefit Plans

As of June 30, 2012, 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 was minimally required to contribute approximately $2.7 million in cash to its domestic pension plan in 2012. However, the Company is evaluating the impact of the Moving Ahead for Progress in the 21^st Century Act (MAP-21) signed into law in July 2012, which is expected to lower the required minimum contribution to the domestic pension plan in 2012. Contributions of $0.6 million were made during the second quarter of 2012 and $1.0 million for the six months ended June 30, 2012. Contributions of $0.4 million were made during the second quarter of 2011 and $0.8 million for the six months ended June 30, 2011.

The following is a summary of the components of net periodic benefit cost for the domestic pension plan for the quarters and six months ended June 30, 2012 and 2011:

	Quarter Ended						Six Months Ended
	June 30,						June 30,
In thousands	2012			2011			2012			2011
Components of net periodic benefit cost
Interest cost	$	648		$	646		$	1,296		$	1,292
Expected return on assets		(640	)		(662	)		(1,280	)		(1,324	)
Amortization of actuarial loss		223			140			447			280
Net periodic benefit cost	$	231		$	124		$	463		$	248