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Segment Information
3 Months Ended
Mar. 31, 2019
Segment Reporting [Abstract]  
Segment Information
17. Segment Information

The Company expects to separate its businesses to form two new, independent publicly traded companies and now expects the DRiV spinoff to occur mid-2020.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 March 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues from external customers
$
1,779

 
$
1,175

 
$
733

 
$
797

 
$
4,484

 
$

 
$

 
$
4,484

Intersegment revenues
$

 
$
46

 
$
46

 
$
11

 
$
103

 
$

 
$
(103
)
 
$

EBITDA, including noncontrolling interests
$
131

 
$
113

 
$
(45
)
 
$
45

 
$
244

 
$
(99
)
 
$

 
$
145

For the Three Months Ended March 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues from external customers
$
1,756

 
$

 
$
513

 
$
312

 
$
2,581

 
$

 
$

 
$
2,581

Intersegment revenues
$

 
$

 
$
6

 
$

 
$
6

 
$

 
$
(6
)
 
$

EBITDA, including noncontrolling interests
$
157

 
$

 
$
24

 
$
45

 
$
226

 
$
(44
)
 
$

 
$
182


Segment EBITDA including noncontrolling interests and the reconciliation to earnings before interest expense, income taxes, and noncontrolling interests are as follow:
 
Three Months Ended March 31,
 
2019
 
2018
EBITDA including noncontrolling interests by Segments:
 
 
 
Clean Air
$
131

 
$
157

Powertrain
113

 

Ride Performance
(45
)
 
24

Motorparts
45

 
45

Corporate
(99
)
 
(44
)
Total EBITDA including noncontrolling interests
145

 
182

Less: Depreciation and amortization
(169
)
 
(60
)
Earnings (loss) before interest expense, income taxes, and noncontrolling interests
(24
)
 
122

Less: Interest expense
(81
)
 
(23
)
Less: Income tax expense (benefit)

 
(25
)
Net income (loss)
$
(105
)
 
$
74



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 March 31, 2019
 
 
 
 
 
 
 
 
 
OE - Substrate
$
706

 
$

 
$

 
$

 
$
706

OE - Value add
1,073

 
1,175

 
733

 

 
2,981

Aftermarket

 

 

 
797

 
797

Total
$
1,779

 
$
1,175

 
$
733

 
$
797

 
$
4,484

Three Months Ended March 31, 2018
 
 
 
 
 
 
 
 
 
OE - Substrate
$
652

 
$

 
$

 
$

 
$
652

OE - Value add
1,104

 

 
513

 

 
1,617

Aftermarket

 

 

 
312

 
312

Total
$
1,756

 
$

 
$
513

 
$
312

 
$
2,581


 
Reportable Segments
By Geography
Clean Air
 
Powertrain
 
Ride Performance
 
Motorparts
 
Total
Three Months Ended March 31, 2019
 
 
 
 
 
 
 
 
 
North America
$
793

 
$
405

 
$
232

 
$
507

 
$
1,937

Europe, Middle East and Africa
641

 
575

 
378

 
237

 
1,831

Rest of world
345

 
195

 
123

 
53

 
716

Total
$
1,779

 
$
1,175

 
$
733

 
$
797

 
$
4,484

Three Months Ended March 31, 2018
 
 
 
 
 
 
 
 
 
North America
$
768

 
$

 
$
180

 
$
188

 
$
1,136

Europe, Middle East and Africa
657

 

 
225

 
108

 
990

Rest of world
331

 

 
108

 
16

 
455

Total
$
1,756

 
$

 
$
513

 
$
312

 
$
2,581