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Pension, Savings and Other Postretirement Benefit Plans
 9 Months Ended
Sep. 30, 2024
Retirement Benefits [Abstract]  
Pension, Savings and Other Postretirement Benefits Plans

NOTE 10. 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

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In millions)

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Service cost

 

$

2

 

 

$

2

 

 

$

6

 

 

$

6

 

Interest cost

 

 

44

 

 

 

47

 

 

 

131

 

 

 

148

 

Expected return on plan assets

 

 

(52

)

 

 

(57

)

 

 

(156

)

 

 

(175

)

Amortization of net losses

 

 

24

 

 

 

25

 

 

 

72

 

 

 

74

 

Net periodic pension cost

 

$

18

 

 

$

17

 

 

$

53

 

 

$

53

 

Net curtailments/settlements/termination benefits

 

 

—

 

 

 

—

 

 

 

(5

)

 

 

33

 

Total defined benefit pension cost

 

$

18

 

 

$

17

 

 

$

48

 

 

$

86

 

 

 

 

Non-U.S.

 

 

Non-U.S.

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In millions)

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Service cost

 

$

5

 

 

$

5

 

 

$

14

 

 

$

14

 

Interest cost

 

 

26

 

 

 

27

 

 

 

79

 

 

 

81

 

Expected return on plan assets

 

 

(23

)

 

 

(23

)

 

 

(68

)

 

 

(69

)

Amortization of prior service cost

 

 

—

 

 

 

—

 

 

 

1

 

 

 

1

 

Amortization of net losses

 

 

5

 

 

 

3

 

 

 

15

 

 

 

12

 

Net periodic pension cost

 

$

13

 

 

$

12

 

 

$

41

 

 

$

39

 

Net curtailments/settlements/termination benefits

 

 

—

 

 

 

4

 

 

 

—

 

 

 

7

 

Total defined benefit pension cost

 

$

13

 

 

$

16

 

 

$

41

 

 

$

46

 

 

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 first nine months of 2024, a pension settlement credit of $5 million was recorded in Other (Income) Expense. The settlement credit resulted from a premium refund related to the purchase of a group annuity contract for the Cooper Tire U.S. Salaried defined benefit pension plan described below.

During the second quarter of 2023, we settled all plan benefits of the Cooper Tire U.S. Salaried defined benefit pension plan, with lump sum payments to electing participants and the purchase of a group annuity contract. During the second quarter of 2023, we also settled all plan benefits of the Ireland defined benefit pension plan. In the first nine months of 2023, pension settlement charges of $36 million were recorded in Other (Income) Expense in conjunction with the termination of these plans.

In the third quarter of 2023, we recorded settlement charges of $4 million in Other (Income) Expense resulting from total lump sum payments exceeding annual service and interest cost for certain non-U.S. defined benefit pension plans.

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 September 30, 2024 and 2023 was $1 million and $2 million, respectively, and for the nine months ended September 30, 2024 and 2023 was $5 million and $6 million, respectively.

During the third quarter of 2024, we approved changes to one of our U.S. other postretirement benefit plans, effective January 1, 2025, which resulted in a $24 million reduction of our U.S. other postretirement benefit obligation.

We expect to contribute $25 million to $35 million to our funded non-U.S. pension plans in 2024. For the three and nine months ended September 30, 2024, we contributed $7 million and $23 million, respectively, to our non-U.S. plans.

The expense recognized for our contributions to defined contribution savings plans for the three months ended September 30, 2024 and 2023 was $34 million and $33 million, respectively, and for the nine months ended September 30, 2024 and 2023 was $104 million and $100 million, respectively.