Segment Information

9 Months Ended

Sep. 30, 2019

17. Segment Information

The Company intends to separate its businesses to form two independent companies, DRiV and New Tenneco. As such, the Company began to manage and report its DRiV businesses through two new operating segments, in the first quarter of 2019, as compared to the three operating segments it had previously reported. The DRiV operating segments consist of Motorparts and Ride Performance. The new Motorparts operating segment consists of the previously reported Aftermarket operating segment as well as the aftermarket portion of the previously reported Motorparts operating segment. The Ride Performance operating segment consists of the previously reported Ride Performance operating segment as well as the OE Braking business that was included in the previously reported Motorparts operating segment. As such, prior period operating segment results have been conformed to reflect the Company's current operating segments. The future New Tenneco consists of two existing operating segments, Powertrain and Clean Air. Costs related to other business activities, primarily corporate headquarter functions, are disclosed separately from the four operating segments as "Corporate."

Management uses EBITDA including noncontrolling interests as the key performance measure of segment profitability and uses the measure in its financial and operational decision making processes, for internal reporting, and for planning and forecasting purposes to effectively allocate resources. EBITDA including noncontrolling interests is defined as earnings before interest expense, income taxes, noncontrolling interests, and depreciation and amortization. Segment assets are not presented as it is not a measure reviewed by the Chief Operating Decision Maker in allocating resources and assessing performance.

EBITDA including noncontrolling interests should not be considered a substitute for results prepared in accordance with US GAAP and should not be considered an alternative to net income, which is the most directly comparable financial measure to EBITDA including noncontrolling interests that is in accordance with US GAAP. EBITDA including noncontrolling interests, as determined and measured by the Company, should not be compared to similarly titled measures reported by other companies.

The following table summarizes certain of the Company's segment information:



	Reportable Segments
	Clean Air		Powertrain		Ride Performance		Motorparts		Total		Corporate		Reclass & Elims			Total
For the Three Months Ended September 30, 2019
Revenues from external customers	$	1,772	$	1,082	$	671	$	794	$	4,319	$	—	$	—		$	4,319
Intersegment revenues	$	—	$	38	$	42	$	9	$	89	$	—	$	(89	)	$	—
For the Nine Months Ended September 30, 2019
Revenues from external customers	$	5,378	$	3,390	$	2,113	$	2,426	$	13,307	$	—	$	—		13,307
Intersegment revenues	$	—	$	124	$	126	$	31	$	281	$	—	$	(281	)	$	—



	Reportable Segments
	Clean Air		Powertrain		Ride Performance		Motorparts		Total		Corporate		Reclass & Elims			Total
For the Three Months Ended September 30, 2018
Revenues from external customers	$	1,602	$	—	$	461	$	308	$	2,371	$	—	$	—		$	2,371
Intersegment revenues	$	—	$	—	$	5	$	—	$	5	$	—	$	(5	)	$	—
For the Nine Months Ended September 30, 2018
Revenues from external customers	$	5,052	$	—	$	1,480	$	953	$	7,485	$	—	$	—		$	7,485
Intersegment revenues	$	—	$	—	$	16	$	—	$	16	$	—	$	(16	)	$	—

Segment EBITDA including noncontrolling interests and the reconciliation to net income (loss) is as follows:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
EBITDA including noncontrolling interests by Segments:
Clean Air	$	169		$	144		$	452		$	443
Powertrain	90			—			303			—
Ride Performance	20			14			1			58
Motorparts	113			53			268			153
Corporate	(79		)	(39		)	(256		)	(129		)
Total EBITDA including noncontrolling interests	313			172			768			525
Depreciation and amortization	(165		)	(60		)	(503		)	(180		)
Earnings (loss) before interest expense, income taxes, and noncontrolling interests	148			112			265			345
Interest expense	(79		)	(24		)	(242		)	(69		)
Income tax (expense) benefit	9			(22		)	(5		)	(73		)
Net income (loss)	$	78		$	66		$	18		$	203

Disaggregated Revenue

Revenue from contracts with customers is disaggregated by customer type and geography, as it depicts the nature and amount of the Company’s revenue that is aligned with the Company's key growth strategies. In the following tables, revenue is disaggregated accordingly:



	Reportable Segments
By Customer Type	Clean Air		Powertrain		Ride Performance		Motorparts		Total
Three Months Ended September 30, 2019
OE - Substrate	$	775	$	—	$	—	$	—	$	775
OE - Value add	997		1,082		671		—		2,750
Aftermarket	—		—		—		794		794
Total	$	1,772	$	1,082	$	671	$	794	$	4,319
Nine Months Ended September 30, 2019
OE - Substrate	$	2,258	$	—	$	—	$	—	$	2,258
OE - Value add	3,120		3,390		2,113		—		8,623
Aftermarket	—		—		—		2,426		2,426
Total	$	5,378	$	3,390	$	2,113	$	2,426	$	13,307



	Reportable Segments
By Customer Type	Clean Air		Powertrain		Ride Performance		Motorparts		Total
Three Months Ended September 30, 2018
OE - Substrate	$	596	$	—	$	—	$	—	$	596
OE - Value add	1,006		—		461		—		1,467
Aftermarket	—		—		—		308		308
Total	$	1,602	$	—	$	461	$	308	$	2,371
Nine Months Ended September 30, 2018
OE - Substrate	$	1,869	$	—	$	—	$	—	$	1,869
OE - Value add	3,183		—		1,480		—		4,663
Aftermarket	—		—		—		953		$	953
Total	$	5,052	$	—	$	1,480	$	953	$	7,485



	Reportable Segments
By Geography	Clean Air		Powertrain		Ride Performance		Motorparts		Total
Three Months Ended September 30, 2019
North America	$	759	$	386	$	225	$	513	$	1,883
Europe, Middle East and Africa	581		502		311		229		1,623
Rest of world	432		194		135		52		813
Total	$	1,772	$	1,082	$	671	$	794	$	4,319
Nine Months Ended September 30, 2019
North America	$	2,352	$	1,189	$	685	$	1,556	$	5,782
Europe, Middle East and Africa	1,831		1,617		1,038		707		5,193
Rest of world	1,195		584		390		163		2,332
Total	$	5,378	$	3,390	$	2,113	$	2,426	$	13,307



	Reportable Segments
By Geography	Clean Air		Powertrain		Ride Performance		Motorparts		Total
Three Months Ended September 30, 2018
North America	$	735	$	—	$	180	$	196	$	1,111
Europe, Middle East and Africa	559		—		177		97		833
Rest of world	308		—		104		15		427
Total	$	1,602	$	—	$	461	$	308	$	2,371
Nine Months Ended September 30, 2018
North America	$	2,248	$	—	$	545	$	594	$	3,387
Europe, Middle East and Africa	1,839		—		614		310		2,763
Rest of world	965		—		321		49		1,335
Total	$	5,052	$	—	$	1,480	$	953	$	7,485