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Segment Information
 6 Months Ended
Jun. 30, 2021
Segment Reporting [Abstract]  
Segment Information
15. 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 and six months ended June 30, 2021 and 2020 are as follows:
Reportable Segments
 MotorpartsPerformance SolutionsClean AirPowertrainTotalReclass & ElimsTotal
For the Three Months Ended June 30, 2021
Revenues from external customers$794 $715 $2,024 $1,050 $4,583 $— $4,583 
Intersegment revenues$10 $23 $4 $47 $84 $(84)$— 
Equity in earnings of nonconsolidated affiliates, net of tax$4 $— $— $11 $15 $— $15 
For the Three Months Ended June 30, 2020
Revenues from external customers$559 $378 $1,140 $560 $2,637 $— $2,637 
Intersegment revenues$6 $21 $3 $21 $51 $(51)$— 
Equity in earnings of nonconsolidated affiliates, net of tax$1 $1 $— $2 $4 $— $4 
For the Six Months Ended June 30, 2021
Revenues from external customers$1,513 $1,502 $4,148 $2,151 $9,314 $— $9,314 
Intersegment revenues$19 $49 $10 $94 $172 $(172)$— 
Equity in earnings of nonconsolidated affiliates, net of tax$7 $1 $— $29 $37 $— $37 
For the Six Months Ended June 30, 2020
Revenues from external customers$1,265 $1,047 $2,685 $1,476 $6,473 $— $6,473 
Intersegment revenues$15 $50 $9 $59 $133 $(133)$— 
Equity in earnings of nonconsolidated affiliates, net of tax$3 $1 $— $13 $17 $— $17 
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 June 30,Six Months Ended June 30,
2021202020212020
EBITDA including noncontrolling interests by segment:
Motorparts$67 $(52)$169 $(92)
Performance Solutions32 (63)75 (737)
Clean Air143 17 292 116 
Powertrain94 (69)209 (42)
Total reportable segments336 (167)745 (755)
Corporate(64)(49)(114)(135)
Depreciation and amortization(145)(159)(300)(330)
Earnings (loss) before interest expense, income taxes, and noncontrolling interests127 (375)331 (1,220)
Interest expense(69)(66)(139)(141)
Income tax (expense) benefit(41)101 (88)195 
Net income (loss)$17 $(340)$104 $(1,166)

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. In the following tables, revenue is disaggregated accordingly:
Reportable Segments
By Customer TypeMotorpartsPerformance SolutionsClean AirPowertrainTotal
Three Months Ended June 30, 2021
OE - Substrate$— $— $1,081 $— $1,081 
OE - Value add— 697 943 1,050 2,690 
Aftermarket794 18 — — 812 
Total$794 $715 $2,024 $1,050 $4,583 
Three Months Ended June 30, 2020
OE - Substrate$— $— $623 $— $623 
OE - Value add— 368 517 560 1,445 
Aftermarket559 10 — — 569 
Total$559 $378 $1,140 $560 $2,637 
Six Months Ended June 30, 2021
OE - Substrate$— $— $2,169 $— $2,169 
OE - Value add— 1,465 1,979 2,151 5,595 
Aftermarket1,513 37 — — 1,550 
Total$1,513 $1,502 $4,148 $2,151 $9,314 
Six Months Ended June 30, 2020
OE - Substrate$— $— $1,323 $— $1,323 
OE - Value add— 1,022 1,362 1,476 3,860 
Aftermarket1,265 25 — — 1,290 
Total$1,265 $1,047 $2,685 $1,476 $6,473 
Reportable Segments
By GeographyMotorpartsPerformance SolutionsClean AirPowertrainTotal
Three Months Ended June 30, 2021
North America$501 $223 $812 $316 $1,852 
Europe, Middle East, Africa and South America238 324 639 548 1,749 
Asia Pacific55 168 573 186 982 
Total$794 $715 $2,024 $1,050 $4,583 
Three Months Ended June 30, 2020
North America$389 $91 $335 $158 $973 
Europe, Middle East, Africa and South America135 170 248 254 807 
Asia Pacific35 117 557 148 857 
Total$559 $378 $1,140 $560 $2,637 
Six Months Ended June 30, 2021
North America$955 $463 $1,663 $644 $3,725 
Europe, Middle East, Africa and South America450 679 1,321 1,111 3,561 
Asia Pacific108 360 1,164 396 2,028 
Total$1,513 $1,502 $4,148 $2,151 $9,314 
Six Months Ended June 30, 2020
North America$865 $319 $1,039 $472 $2,695 
Europe, Middle East, Africa and South America332 489 813 724 2,358 
Asia Pacific68 239 833 280 1,420 
Total$1,265 $1,047 $2,685 $1,476 $6,473