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Segment Information
 9 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
Segment Information
14. 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.”

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 (“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 are as follows:
Reportable Segments
 MotorpartsPerformance SolutionsClean AirPowertrainTotalReclass & ElimsTotal
Three Months Ended September 30, 2022
Revenues from external customers$723 $849 $2,335 $1,024 $4,931 $— $4,931 
Intersegment revenues$10 $18 $4 $40 $72 $(72)$— 
Equity in earnings (losses) of nonconsolidated affiliates, net of tax$3 $— $(1)$1 $3 $— $3 
Three Months Ended September 30, 2021
Revenues from external customers$769 $686 $1,936 $941 $4,332 $— $4,332 
Intersegment revenues$8 $23 $4 $52 $87 $(87)$— 
Equity in earnings (losses) of nonconsolidated affiliates, net of tax$2 $1 $— $7 $10 $— $10 
Nine Months Ended September 30, 2022
Revenues from external customers$2,174 $2,433 $6,575 $3,063 $14,245 $— $14,245 
Intersegment revenues$30 $60 $14 $131 $235 $(235)$— 
Equity in earnings (losses) of nonconsolidated affiliates, net of tax$11 $(1)$(1)$16 $25 $— $25 
Nine Months Ended September 30, 2021
Revenues from external customers$2,282 $2,188 $6,084 $3,092 $13,646 $— $13,646 
Intersegment revenues$27 $72 $14 $146 $259 $(259)$— 
Equity in earnings (losses) of nonconsolidated affiliates, net of tax$9 $2 $— $36 $47 $— $47 

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,
2022202120222021
EBITDA including noncontrolling interests by segment:
Motorparts$73 $111 $229 $280 
Performance Solutions41 42 67 117 
Clean Air131 138 338 430 
Powertrain90 71 198 280 
Total reportable segments335 362 832 1,107 
Corporate(66)(90)(182)(204)
Depreciation and amortization(140)(147)(429)(447)
Earnings (loss) before interest expense, income taxes, and noncontrolling interests129 125 221 456 
Interest expense(90)(66)(232)(205)
Income tax (expense) benefit(67)(34)(140)(122)
Net income (loss)$(28)$25 $(151)$129 
Disaggregated Revenue
Original Equipment
Value-Added Sales
OE revenue is generated from providing OE manufacturers and servicers with products for automotive, commercial truck, off-highway, 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 September 30, 2022
OE - Substrate$— $— $1,295 $— $1,295 
OE - Value add— 830 1,040 1,024 2,894 
Aftermarket723 19 — — 742 
Total$723 $849 $2,335 $1,024 $4,931 
Three Months Ended September 30, 2021
OE - Substrate$— $— $1,039 $— $1,039 
OE - Value add— 668 897 941 2,506 
Aftermarket769 18 — — 787 
Total$769 $686 $1,936 $941 $4,332 
Nine Months Ended September 30, 2022
OE - Substrate$— $— $3,517 $— $3,517 
OE - Value add— 2,371 3,058 3,063 8,492 
Aftermarket2,174 62 — — 2,236 
Total$2,174 $2,433 $6,575 $3,063 $14,245 
Nine Months Ended September 30, 2021
OE - Substrate$— $— $3,208 $— $3,208 
OE - Value add— 2,133 2,876 3,092 8,101 
Aftermarket2,282 55 — — 2,337 
Total$2,282 $2,188 $6,084 $3,092 $13,646 
Reportable Segments
By GeographyMotorpartsPerformance SolutionsClean AirPowertrainTotal
Three Months Ended September 30, 2022
North America$451 $275 $1,105 $356 $2,187 
Europe, Middle East, Africa and South America218 325 583 489 1,615 
Asia Pacific54 249 647 179 1,129 
Total$723 $849 $2,335 $1,024 $4,931 
Three Months Ended September 30, 2021
North America$475 $218 $762 $300 $1,755 
Europe, Middle East, Africa and South America237 286 503 464 1,490 
Asia Pacific57 182 671 177 1,087 
Total$769 $686 $1,936 $941 $4,332 
Nine Months Ended September 30, 2022
North America$1,352 $784 $2,974 $1,034 $6,144 
Europe, Middle East, Africa and South America660 996 1,889 1,522 5,067 
Asia Pacific162 653 1,712 507 3,034 
Total$2,174 $2,433 $6,575 $3,063 $14,245 
Nine Months Ended September 30, 2021
North America$1,430 $681 $2,425 $944 $5,480 
Europe, Middle East, Africa and South America687 965 1,824 1,575 5,051 
Asia Pacific165 542 1,835 573 3,115 
Total$2,282 $2,188 $6,084 $3,092 $13,646