Pension, Savings and Other Postretirement Benefit Plans

6 Months Ended

Jun. 30, 2021

Compensation And Retirement Disclosure [Abstract]

Pension, Other Postretirement Benefits and Savings Plans

NOTE 11. PENSION, SAVINGS AND OTHER POSTRETIREMENT BENEFIT PLANS

We provide employees with defined benefit pension or defined contribution savings plans.

Defined benefit pension cost follows:

	U.S.						U.S.
	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions)	2021			2020			2021			2020
Service cost	$	2		$	1		$	3		$	2
Interest cost		22			32			42			65
Expected return on plan assets		(46	)		(48	)		(88	)		(97	)
Amortization of net losses		26			28			54			55
Net periodic pension cost	$	4		$	13		$	11		$	25
Net curtailments/settlements/termination benefits		19			6			19			7
Total defined benefit pension cost	$	23		$	19		$	30		$	32

	Non-U.S.						Non-U.S.
	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions)	2021			2020			2021			2020
Service cost	$	8		$	7		$	15		$	14
Interest cost		11			14			22			28
Expected return on plan assets		(12	)		(13	)		(22	)		(27	)
Amortization of prior service cost		1			—			1			1
Amortization of net losses		9			9			17			19
Net periodic pension cost	$	17		$	17		$	33		$	35
Net curtailments/settlements/termination benefits		—			—			—			1
Total defined benefit pension cost	$	17		$	17		$	33		$	36

The net funded (unfunded) status of Cooper Tire's defined benefit pension plans at the Closing Date was $12 million and $(62) million for their U.S. plans and non-U.S. plans, respectively. The net unfunded status of Cooper Tire's U.S. other postretirement benefits plan at the Closing Date was $(215) million.

Service cost is recorded in CGS or SAG. Other components of net periodic pension cost are recorded in Other (Income) Expense. Net curtailments, settlements and termination benefits are recorded in Other (Income) Expense or Rationalizations if related to a rationalization plan.

In the second quarter and first six months of 2021, pension settlement charges of $19 million were recorded in Other (Income) Expense.

In the second quarter and first six months of 2020, pension settlement charges of $1 million and $3 million, respectively, were recorded in Other (Income) Expense and a pension termination benefits charge of $5 million was recorded in Rationalizations, related to the exit of employees under an approved rationalization plan.

We also provide certain U.S. employees and employees at certain non-U.S. subsidiaries with health care benefits or life insurance benefits upon retirement. Other postretirement benefits expense for the three months ended June 30, 2021 and 2020 was $1 million and $2 million, respectively. Other postretirement benefits expense (credit) for the six months ended June 30, 2021 and 2020 was $3 million and $(1) million, respectively. The six months ended June 30, 2020 included a curtailment credit of $4 million in Rationalizations, related to the exit of employees under an approved rationalization plan.

We expect to contribute $50 million to $75 million to our funded pension plans in 2021. For the three and six months ended June 30, 2021, we contributed $5 million and $7 million, respectively, to our non-U.S. plans.

The expense recognized for our contributions to defined contribution savings plans for the three months ended June 30, 2021 and 2020 was $27 million and $20 million, respectively, and for the six months ended June 30, 2021 and 2020 was $55 million and $50 million, respectively.