Pension, Savings and Other Postretirement Benefit Plans

9 Months Ended

Sep. 30, 2021

Retirement Benefits [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						Nine Months Ended
	September 30,						September 30,
(In millions)	2021			2020			2021			2020
Service cost	$	3		$	1		$	6		$	3
Interest cost		26			32			68			97
Expected return on plan assets		(54	)		(48	)		(142	)		(145	)
Amortization of net losses		26			27			80			82
Net periodic pension cost	$	1		$	12		$	12		$	37
Net curtailments/settlements/termination benefits		11			18			30			25
Total defined benefit pension cost	$	12		$	30		$	42		$	62

	Non-U.S.						Non-U.S.
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(In millions)	2021			2020			2021			2020
Service cost	$	7		$	8		$	22		$	22
Interest cost		13			14			35			42
Expected return on plan assets		(13	)		(13	)		(35	)		(40	)
Amortization of prior service cost		—			—			1			1
Amortization of net losses		8			9			25			28
Net periodic pension cost	$	15		$	18		$	48		$	53
Net curtailments/settlements/termination benefits		—			—			—			1
Total defined benefit pension cost	$	15		$	18		$	48		$	54

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 funded (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 third quarter and first nine months of 2021, pension settlement charges of $11 million and $30 million, respectively, were recorded in Other (Income) Expense.

In the third quarter and first nine months of 2020, pension settlement charges of $16 million and $19 million, respectively, were recorded in Other (Income) Expense and pension termination benefits charges of $2 million and $7 million, respectively, were 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 September 30, 2021 and 2020 was $3 million and $1 million, respectively. Other postretirement benefits expense for the nine months ended September 30, 2021 was $6 million. Other postretirement benefits expense for the nine months ended September 30, 2020 included $4 million of net periodic cost, offset by a curtailment credit of $4 million, 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 both the three and nine months ended September 30, 2021, we contributed $29 million to our U.S. plans. For the three and nine months ended September 30, 2021, we contributed $11 million and $18 million, respectively, to our non-U.S. plans.

The expense recognized for our contributions to defined contribution savings plans for the three months ended September 30, 2021 and 2020 was $31 million and $25 million, respectively, and for the nine months ended September 30, 2021 and 2020 was $86 million and $75 million, respectively.