Pensions and Other Postretirement Benefits

3 Months Ended

Mar. 31, 2020

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 recorded in Other charges in the accompanying condensed consolidated statements of income.

The net periodic pension and other postretirement benefit costs for the three months ended March 31, 2020 and 2019 were as follows:

	Pension		Other Postretirement Benefits
	Three Months Ended March 31		Three Months Ended March 31
($ in millions)	2020	2019	2020	2019
Service cost	$6	$6	$2	$2
Interest cost	22	26	5	6
Expected return on plan assets	(36)	(35)	—	—
Amortization of actuarial losses	18	15	4	2
Amortization of prior service credit	—	—	(15)	(14)
Net periodic benefit cost	$10	$12	($4)	($4)

PPG expects its 2020 net periodic pension and other postretirement benefit cost will be approximately $25 million, with pension expense representing approximately $40 million and other postretirement benefit cost representing a benefit of approximately $15 million.

Contributions to Defined Benefit Pension Plans

	Three Months Ended March 31
($ in millions)	2020	2019
Non-U.S. defined benefit pension mandatory contributions	$2	$3

PPG expects to make mandatory contributions to its non-U.S. pension plans in the range of $10 million to $15 million during the remaining nine months of 2020. PPG may make voluntary contributions to its defined benefit pension plans in 2020 and beyond.