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Pensions and Other Postretirement Benefits
9 Months Ended
Sep. 30, 2019
Retirement Benefits [Abstract]  
Pensions and Other Postretirement Benefits
Pensions and Other Postretirement Benefits
Service cost for net periodic pension and other postretirement benefit costs is included in Cost of sales, exclusive of depreciation and amortization, Selling, general and administrative, and Research and development, net in the accompanying condensed consolidated statements of income. All other components of net periodic benefit cost are now recorded in Other charges, except for pension settlement charges, in the accompanying condensed consolidated statements of income.
The net periodic pension and other postretirement benefit costs for the three and nine months ended September 30, 2019 and 2018 were as follows:
 
Pension
 
Three Months Ended
September 30
 
Nine Months Ended
September 30
($ in millions)
2019
 
2018
 
2019
 
2018
Service cost

$6

 

$8

 

$17

 

$24

Interest cost
26

 
23

 
79

 
71

Expected return on plan assets
(35
)
 
(37
)
 
(105
)
 
(113
)
Amortization of actuarial losses
16

 
16

 
47

 
48

Net periodic benefit cost

$13

 

$10

 

$38

 

$30


 
Other Postretirement Benefits
 
Three Months Ended
September 30
 
Nine Months Ended
September 30
($ in millions)
2019
 
2018
 
2019
 
2018
Service cost

$3

 

$2

 

$7

 

$7

Interest cost
6

 
6

 
19

 
18

Amortization of actuarial losses
2

 
5

 
6

 
14

Amortization of prior service credit
(14
)
 
(15
)
 
(43
)
 
(45
)
Net periodic benefit cost

($3
)
 

($2
)
 

($11
)
 

($6
)

PPG expects its 2019 net periodic pension and other postretirement benefit cost will be approximately $35 million, with pension expense representing approximately $50 million and other postretirement benefit cost representing a benefit of approximately $15 million.
Contributions to Defined Benefit Pension Plans
 
Three Months Ended
September 30
 
Nine Months Ended
September 30
($ in millions)
2019
 
2018
 
2019
 
2018
U.S. defined benefit pension contributions

$—

 

$50

 

$—

 

$75

Non-U.S. defined benefit pension mandatory contributions

$2

 

$4

 

$8

 

$14


PPG made voluntary contributions of $50 million and $25 million its U.S. defined benefit pension plans in September 2018 and January 2018, respectively. PPG expects to make mandatory contributions to its non-U.S. pension plans in the range of $5 million to $10 million during the remaining three months of 2019. PPG may make voluntary contributions to its defined benefit pension plans in 2019 and beyond.