Pensions and Other Postretirement Benefits

6 Months Ended

Jun. 30, 2022

Retirement Benefits [Abstract]

Pensions and Other Postretirement Benefits

Pensions and Other Postretirement Benefits The service cost component of net periodic pension and other postretirement benefit (income)/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 income, net in the accompanying condensed consolidated statements of income.

Net periodic pension benefit income and other postretirement benefit (income)/cost for the three and six months ended June 30, 2022 and 2021 was as follows:

	Pension
	Three Months Ended June 30		Six Months Ended June 30
($ in millions)	2022	2021	2022	2021
Service cost	$2	$2	$4	$5
Interest cost	18	16	37	32
Expected return on plan assets	(35)	(38)	(71)	(76)
Amortization of actuarial losses	9	10	17	20
Net periodic benefit income	($6)	($10)	($13)	($19)

	Other Postretirement Benefits
	Three Months Ended June 30		Six Months Ended June 30
($ in millions)	2022	2021	2022	2021
Service cost	$1	$3	$4	$6
Interest cost	4	4	8	7
Amortization of actuarial losses	2	4	6	10
Amortization of prior service credit	(2)	(13)	(5)	(27)
Net periodic benefit cost/(income)	$5	($2)	$13	($4)

Net periodic other postretirement expense was higher for both the three and six months ended June 30, 2022 compared to 2021 due to a decrease in the benefit associated with a 2017 other postretirement benefit plan design change. The 2017 plan design change resulted in a significant reduction in the Company’s postretirement benefit obligation, the impact of which was amortized as a reduction of net periodic benefit cost through 2021.

PPG expects 2022 full year net periodic pension income of approximately $25 million and net periodic other postretirement expense of approximately $25 million.

Contributions to Defined Benefit Pension Plans

	Three Months Ended June 30		Six Months Ended June 30
($ in millions)	2022	2021	2022	2021
Non-U.S. defined benefit pension mandatory contributions	$1	$1	$2	$2

PPG expects to make contributions to its defined benefit pension plans in the range of $5 million to $10 million during the remaining six months of 2022. PPG may make voluntary contributions to its defined benefit pension plans in 2022 and beyond.