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Pensions and Other Postretirement Benefits
 9 Months Ended
Sep. 30, 2024
Retirement Benefits [Abstract]  
Pensions and Other Postretirement Benefits Pensions and Other Postretirement Benefits
In March 2023, the Company purchased group annuity contracts that transferred to third-party insurance companies pension benefit obligations for certain of the Company’s retirees in the U.S. who were receiving their monthly retirement benefit payments from the U.S. pension plan. The amount of each affected retiree’s annuity payment is equal to the amount of such individual’s pension benefit. The purchase of group annuity contracts was funded directly by the assets of the U.S. plans. By transferring the obligations and assets to the insurance companies, the Company reduced its overall pension projected benefit obligation by $309 million and recognized a non-cash Pension settlement charge of $190 million.
The service cost component of net periodic pension and other postretirement benefit cost is included in Cost of sales, exclusive of depreciation and amortization, Selling, general and administrative, and Research and development, net in the accompanying condensed consolidated statement of income. Except for the Pension settlement charge in the quarter ended March 31, 2023, all other components of net periodic benefit cost are recorded in Other (income)/charges, net in the accompanying condensed consolidated statement of income.
Net periodic pension benefit cost and other postretirement benefit cost for the three and nine months ended September 30, 2024 and 2023 was as follows:
Pension
Three Months Ended
September 30		Nine Months Ended
September 30
($ in millions)2024202320242023
Service cost$2 $2 $6 $6 
Interest cost25 28 77 83 
Expected return on plan assets(28)(28)(82)(83)
Amortization of actuarial losses6 6 17 16 
Settlements1 — 9 191 
Net periodic benefit cost$6 $8 $27 $213 
 Other Postretirement Benefits
 Three Months Ended
September 30		Nine Months Ended
September 30
($ in millions)2024202320242023
Service cost$1 $1 $3 $3 
Interest cost5 7 17 20 
Amortization of actuarial gains— — (1)(1)
Amortization of prior service credit(1)(2)(3)(5)
Net periodic benefit cost$5 $6 $16 $17 
Net periodic pension cost was lower for the nine months ended September 30, 2024 compared to 2023 primarily due to the Pension settlement charge recognized in the first quarter 2023.
PPG expects 2024 full year net periodic pension expense of approximately $35 million and net periodic other postretirement expense of approximately $21 million.
Contributions to Defined Benefit Pension Plans
Three Months Ended
September 30		Nine Months Ended
September 30
($ in millions)2024202320242023
U.S. defined benefit pension plan mandatory contributions$5 $— $5 $— 
Non-U.S. defined benefit pension mandatory contributions— 1 2 3 
Total defined benefit pension mandatory contributions$5 $1 $7 $3 
PPG expects to make mandatory contributions to its defined benefit pension plans in the range of $10 million to $20 million during the remaining three months of 2024. In addition to any mandatory contributions, PPG may elect to make voluntary contributions to its defined benefit pension plans in 2024 and beyond.