Employer Sponsored Benefit Plans

As of June 30, 2017, 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 $3.5 million to $4.0 million in cash for its domestic pension plan in 2017. Contributions of $1.2 million and $2.4 million were made during the quarter and six months ended June 30, 2017, respectively. There were no contributions made during the quarter and six months ended June 30, 2016.

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 six months ended June 30, 2017 and 2016:



	Quarter Ended June 30,						Six Months Ended June 30,
In thousands	2017			2016			2017			2016
Components of net periodic benefit cost
Interest cost	$	514		$	535		$	1,029		$	1,070
Expected return on assets	(594		)	(605		)	(1,188		)	(1,210		)
Amortization of actuarial loss	273			233			546			467
Net periodic benefit cost	$	193		$	163		$	387		$	327