7. Employer Sponsored Benefit Plans

As of September 30, 2013, 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 $1.2 million in cash to its domestic pension plan in 2013. Contributions of $0.3 million were made during the third quarter of 2013 and $0.9 million were made for the nine months ended September 30, 2013. Contributions of $1.1 million were made during the third quarter of 2012 and $2.1 million were made for the nine months ended September 30, 2012.

The following is a summary of the components of net periodic benefit cost, which is recorded primarily within selling, product development and administrative expenses, for the domestic pension plan for the quarters and nine months ended September 30, 2013 and 2012:

	Quarter Ended				Nine Months Ended
	September 30,				September 30,
In thousands	2013		2012		2013		2012
Components of net periodic benefit cost
Interest cost	$	614	$	648	$	1,841	$	1,944
Expected return on assets		(673)		(640)		(2,019)		(1,920)
Amortization of actuarial loss		267		224		801		671
Net periodic benefit cost	$	208	$	232	$	623	$	695