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Segment Information
 9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
Segment Information
16. Segment Information

Tenneco consists of four operating segments: Powertrain, Clean Air, Ride Performance, and Motorparts. 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 U.S. 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 U.S. GAAP. EBITDA including noncontrolling interests, as determined and measured by the Company, should not be compared to similarly titled measures reported by other companies.

Segment results for the three and nine months ended September 30, 2020 and 2019 are as follows:
Reportable Segments
 Clean AirPowertrainRide PerformanceMotorpartsTotalReclass & ElimsTotal
For the Three Months Ended September 30, 2020
Revenues from external customers$1,919 $1,007 $600 $730 $4,256 $— $4,256 
Intersegment revenues$5 $37 $28 $8 $78 $(78)$— 
Equity in earnings of nonconsolidated affiliates, net of tax$— $7 $— $2 $9 $— $9 
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 $(89)$— 
Equity in earnings of nonconsolidated affiliates, net of tax$— $(1)$1 $1 $1 $— $1 
For the Nine Months Ended September 30, 2020
Revenues from external customers$4,604 $2,606 $1,524 $1,995 $10,729 $— $10,729 
Intersegment revenues$14 $96 $78 $23 $211 $(211)$— 
Equity in earnings of nonconsolidated affiliates, net of tax$— $20 $1 $5 $26 $— $26 
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 $(281)$— 
Equity in earnings of nonconsolidated affiliates, net of tax$— $26 $3 $5 $34 $— $34 

Segment EBITDA including noncontrolling interests and the reconciliation to earnings (loss) before interest expense, income taxes, and noncontrolling interests are as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
EBITDA including noncontrolling interests by segment:
Clean Air$149 $169 $265 $452 
Powertrain111 90 (21)303 
Ride Performance23 20 (624)1 
Motorparts138 113 46 268 
Total reportable segments421 392 (334)1,024 
Corporate(34)(79)(169)(256)
Depreciation and amortization(151)(165)(481)(503)
Earnings (loss) before interest expense, income taxes, and noncontrolling interests236 148 (984)265 
Interest expense(68)(79)(209)(242)
Income tax (expense) benefit(648)9 (453)(5)
Net income (loss)$(480)$78 $(1,646)$18 
Disaggregated Revenue
Original Equipment
Value-Added Sales
OE revenue is generated from providing original equipment manufacturers and servicers with products for automotive, heavy duty, and industrial applications. Supply relationships typically extend over the life of the related vehicle, subject to interim design and technical specification revisions, and do not require the customer to purchase a minimum quantity.

Substrate/Passthrough Sales
Generally, in connection with the sale of exhaust systems to certain OE manufacturers, the Company purchases catalytic converters and diesel particulate filters or components thereof including precious metals (“substrates”) on behalf of its customers which are used in the assembled system. These substrates are included in inventory and are “passed through” to the customer at cost, plus a small margin. Since the Company takes title to the substrate inventory and has responsibility for both the delivery and quality of the finished product including the substrates, the revenues and related expenses are recorded at gross amounts.

Aftermarket
Aftermarket revenue is generated from providing products for the global vehicle aftermarket to a wide range of warehouse distributors, retail parts stores, and mass merchants that distribute these products to customers ranging from professional service providers to “do-it-yourself” consumers.

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. Certain amounts in the prior period for the Ride Performance segment have been reclassified from OE - Value add to Aftermarket to conform with the current year presentation. This reclassification affected the three and nine months ended September 30, 2019 and has no effect on the previously reported totals. In the following tables, revenue is disaggregated accordingly:
Reportable Segments
By Customer TypeClean AirPowertrainRide PerformanceMotorpartsTotal
Three Months Ended September 30, 2020
OE - Substrate$961 $— $— $— $961 
OE - Value add958 1,007 586 — 2,551 
Aftermarket— — 14 730 744 
Total$1,919 $1,007 $600 $730 $4,256 
Three Months Ended September 30, 2019
OE - Substrate$775 $— $— $— $775 
OE - Value add997 1,082 658 — 2,737 
Aftermarket— — 13 794 807 
Total$1,772 $1,082 $671 $794 $4,319 
Nine Months Ended September 30, 2020
OE - Substrate$2,284 $— $— $— $2,284 
OE - Value add2,320 2,606 1,485 — 6,411 
Aftermarket— — 39 1,995 2,034 
Total$4,604 $2,606 $1,524 $1,995 $10,729 
Nine Months Ended September 30, 2019
OE - Substrate$2,258 $— $— $— $2,258 
OE - Value add3,120 3,390 2,072 — 8,582 
Aftermarket— — 41 2,426 2,467 
Total$5,378 $3,390 $2,113 $2,426 $13,307 
Reportable Segments
By GeographyClean AirPowertrainRide PerformanceMotorpartsTotal
Three Months Ended September 30, 2020
North America$798 $337 $192 $475 $1,802 
Europe, Middle East and Africa532 459 266 206 1,463 
Rest of world589 211 142 49 991 
Total$1,919 $1,007 $600 $730 $4,256 
Three Months Ended September 30, 2019
North America$759 $386 $225 $513 $1,883 
Europe, Middle East and Africa581 502 311 229 1,623 
Rest of world432 194 135 52 813 
Total$1,772 $1,082 $671 $794 $4,319 
Nine Months Ended September 30, 2020
North America$1,837 $849 $471 $1,340 $4,497 
Europe, Middle East and Africa1,345 1,214 724 538 3,821 
Rest of world1,422 543 329 117 2,411 
Total$4,604 $2,606 $1,524 $1,995 $10,729 
Nine Months Ended September 30, 2019
North America$2,352 $1,189 $685 $1,556 $5,782 
Europe, Middle East and Africa1,831 1,617 1,038 707 5,193 
Rest of world1,195 584 390 163 2,332 
Total$5,378 $3,390 $2,113 $2,426 $13,307