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Segment Information
 3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]  
Segment Information
16. Segment Information

Tenneco consists of four operating segments, Motorparts, Performance Solutions, Clean Air, and Powertrain. Costs related to other business activities, primarily corporate headquarter functions, are disclosed separately from the four operating segments as “Corporate.”

Beginning in the first quarter of 2021, the Company made a change to its operating segments. This change consisted of moving a reporting unit within the Powertrain segment to the Ride Performance segment to align with a change in how the CODM allocates resources and assesses performance against the Company’s key growth strategies. In addition, with this change to its segments, Ride Performance was renamed Performance Solutions. As such, prior period operating segment results and related disclosures have been conformed to reflect the Company's current operating segments.

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 CODM 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 months ended March 31, 2021 and 2020 are as follows:
Reportable Segments
 MotorpartsPerformance SolutionsClean AirPowertrainTotalReclass & ElimsTotal
For the Three Months Ended March 31, 2021
Revenues from external customers$719 $787 $2,124 $1,101 $4,731 $— $4,731 
Intersegment revenues$9 $26 $6 $47 $88 $(88)$— 
Equity in earnings of nonconsolidated affiliates, net of tax$3 $1 $— $18 $22 $— $22 
For the Three Months Ended March 31, 2020
Revenues from external customers$706 $669 $1,545 $916 $3,836 $— $3,836 
Intersegment revenues$9 $29 $6 $38 $82 $(82)$— 
Equity in earnings of nonconsolidated affiliates, net of tax$2 $— $— $11 $13 $— $13 

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 March 31,
20212020
EBITDA including noncontrolling interests by segment:
Motorparts$102 $(40)
Performance Solutions43 (674)
Clean Air149 99 
Powertrain115 27 
Total reportable segments409 (588)
Corporate(50)(86)
Depreciation and amortization(155)(171)
Earnings (loss) before interest expense, income taxes, and noncontrolling interests204 (845)
Interest expense(70)(75)
Income tax (expense) benefit(47)94 
Net income (loss)$87 $(826)
Disaggregated Revenue
Original Equipment
Value-Added Sales
OE revenue is generated from providing OE 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 Performance Solutions segment have been reclassified from OE - Value add to Aftermarket to conform with the current year presentation. This reclassification affected the three months ended March 31, 2020. In the following tables, revenue is disaggregated accordingly:
Reportable Segments
By Customer TypeMotorpartsPerformance SolutionsClean AirPowertrainTotal
Three Months Ended March 31, 2021
OE - Substrate$— $— $1,088 $— $1,088 
OE - Value add— 768 1,036 1,101 2,905 
Aftermarket719 19 — — 738 
Total$719 $787 $2,124 $1,101 $4,731 
Three Months Ended March 31, 2020
OE - Substrate$— $— $700 $— $700 
OE - Value add— 654 845 916 2,415 
Aftermarket706 15 — — 721 
Total$706 $669 $1,545 $916 $3,836 
Reportable Segments
By GeographyMotorpartsPerformance SolutionsClean AirPowertrainTotal
Three Months Ended March 31, 2021
North America$454 $240 $851 $328 $1,873 
Europe, Middle East, Africa and South America212 355 682 563 1,812 
Asia Pacific53 192 591 210 1,046 
Total$719 $787 $2,124 $1,101 $4,731 
Three Months Ended March 31, 2020
North America$476 $228 $704 $314 $1,722 
Europe, Middle East, Africa and South America197 319 565 470 1,551 
Asia Pacific33 122 276 132 563 
Total$706 $669 $1,545 $916 $3,836