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Investment in Nonconsolidated Affiliates
 9 Months Ended
Sep. 30, 2020
Equity Method Investments and Joint Ventures [Abstract]  
Investment in Nonconsolidated Affiliates
7. Investment in Nonconsolidated Affiliates

The Company's ownership interest in affiliates accounted for under the equity method is as follows:
September 30, 2020December 31, 2019
Anqing TP Goetze Piston Ring Company Limited (China)35.7 %35.7 %
Anqing TP Powder Metallurgy Co., Ltd (China)20.0 %20.0 %
Dongsuh Federal-Mogul Industrial Co. Ltd. (Korea)50.0 %50.0 %
Farloc Argentina SAIC Y F (Argentina)23.9 %23.9 %
Federal-Mogul Powertrain Otomotiv A.S. (Turkey)50.0 %50.0 %
Federal-Mogul TP Liner Europe Otomotiv Ltd. Sti. (Turkey)25.0 %25.0 %
Federal-Mogul TP Liners, Inc. (U.S.)46.0 %46.0 %
Frenos Hidraulicos Automotrices, S.A. de C.V. (Mexico)49.0 %49.0 %
JURID do Brasil Sistemas Automotivos Ltda. (Brazil)19.9 %19.9 %
KB Autosys Co., Ltd. (Korea)33.6 %33.6 %
Montagewerk Abgastechnik Emden GmbH (Germany)50.0 %50.0 %
The Company's investments in its nonconsolidated affiliates at September 30, 2020 and December 31, 2019 is as follows:
September 30, 2020December 31, 2019
Investments in nonconsolidated affiliates$541 $518 

The carrying amount of the Company's investments in its nonconsolidated affiliates accounted for under the equity method exceeded its share of the underlying net assets by $265 million and $251 million at September 30, 2020 and December 31, 2019.

The following table represents the activity from the Company's investments in its nonconsolidated affiliates for the three and nine months ended September 30, 2020 and 2019:
Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
Equity in earnings (losses) of nonconsolidated affiliates, net of tax$9 $1 $26 $34 
Cash dividends received from nonconsolidated affiliates$— $18 $18 $45 

During the three and nine months ended September 30, 2019, the Company made adjustments in the measurement period to the preliminary purchase price allocation for the Federal-Mogul Acquisition which resulted in a reduction to the fair value of its investments in nonconsolidated affiliates of $4 million. As a result of finalizing purchase accounting and completing a purchase price allocation for certain equity method investments, a $10 million reduction to equity in earnings was recognized in the three and nine months ended September 30, 2019. The non-cash reduction in equity earnings was to recognize the basis difference between the fair value and book value of certain assets, including inventory, property, plant, and equipment, and intangible assets. The purchase price allocation for the Federal-Mogul Acquisition was finalized in the third quarter of 2019.

The following tables present summarized aggregated financial information of the Company's nonconsolidated affiliates for the three and nine months ended September 30, 2020 and 2019. The amounts represent 100% of the interest in the nonconsolidated affiliates and not the Company's proportionate share:
Three Months Ended September 30, 2020
Statements of IncomeOtomotiv A.S.Anqing TP GoetzeOtherTotal
Sales$73 $72 $140 $285 
Gross profit$21 $17 $27 $65 
Income from continuing operations$16 $18 $9 $43 
Net income$11 $16 $8 $35 
Three Months Ended September 30, 2019
Statements of IncomeOtomotiv A.S.Anqing TP GoetzeOtherTotal
Sales$85 $33 $115 $233 
Gross profit$18 $8 $20 $46 
Income from continuing operations$13 $8 $11 $32 
Net income$12 $7 $9 $28 
Nine Months Ended September 30, 2020
Statements of IncomeOtomotiv A.S.Anqing TP GoetzeOtherTotal
Sales$193 $113 $286 $592 
Gross profit$53 $28 $53 $134 
Income from continuing operations$43 $29 $20 $92 
Net income$34 $26 $16 $76 
Nine Months Ended September 30, 2019
Statements of IncomeOtomotiv A.S.Anqing TP GoetzeOtherTotal
Sales$261 $111 $360 $732 
Gross profit$61 $34 $66 $161 
Income from continuing operations$49 $28 $35 $112 
Net income$51 $25 $31 $107 

Refer to Note 17, Related Party Transactions, for additional information on balances and transactions with equity method investments.