Pension, Savings and Other Postretirement Benefit Plans

6 Months Ended

Jun. 30, 2022

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						Six Months Ended
	June 30,						June 30,
(In millions)	2022			2021			2022			2021
Service cost	$	4		$	2		$	7		$	3
Interest cost		29			22			60			42
Expected return on plan assets		(53	)		(46	)		(105	)		(88	)
Amortization of net losses		25			26			51			54
Net periodic pension cost	$	5		$	4		$	13		$	11
Net curtailments/settlements/termination benefits		18			19			18			19
Total defined benefit pension cost	$	23		$	23		$	31		$	30

	Non-U.S.						Non-U.S.
	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions)	2022			2021			2022			2021
Service cost	$	6		$	8		$	12		$	15
Interest cost		16			11			32			22
Expected return on plan assets		(17	)		(12	)		(35	)		(22	)
Amortization of prior service cost		1			1			1			1
Amortization of net losses		5			9			11			17
Total defined benefit pension cost	$	11		$	17		$	21		$	33

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, if any, are recorded in Other (Income) Expense or Rationalizations if related to a rationalization plan.

In the second quarter and first six months of 2022 and 2021, pension settlement charges of $18 million and $19 million, respectively, were recorded in Other (Income) Expense. The settlement charges resulted from total lump sum payments exceeding annual service and interest cost of the applicable plans.

In the first quarter of 2022, we communicated the termination of a Cooper Tire U.S. salaried defined benefit pension plan, which was frozen in 2009, to applicable participants. The termination of the plan, which had $416 million in assets and $403 million in estimated obligations on a termination accounting basis as of June 30, 2022, is expected to be completed in the first half of 2023.

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, 2022 and 2021 was $4 million and $1 million, respectively, and for the six months ended June 30, 2022 and 2021 was $8 million and $3 million, respectively.

We expect to contribute $25 million to $50 million to our funded non-U.S. pension plans in 2022. For the three and six months ended June 30, 2022, we contributed $8 million and $17 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, 2022 and 2021 was $31 million and $27 million, respectively, and for the six months ended June 30, 2022 and 2021 was $66 million and $55 million, respectively.