Valvoline (VVV) 10-Q 13 Feb 17 2017 Q1 Quarterly report Financial data

Document Entity Information

Document Entity Information - shares	3 Months Ended
	Dec. 31, 2016	Jan. 31, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	Valvoline Inc.
Entity Central Index Key	1,674,910
Document Type	10-Q
Document Period End Date	Dec. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		204,530,203
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Income - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Operating Income (Loss) [Abstract]
Sales	$ 489	$ 456
Cost of sales	304	280
Gross profit	185	176
Selling, general and administrative expense	95	87
Non-service income and gains on pension and other postretirement plans	(26)	(2)
Separation costs	6	0
Equity and other income	(10)	(5)
Operating income	120	96
Net interest and other financing expense	10	0
Income before income taxes	110	96
Income tax expense	38	31
Net income	$ 72	$ 65
NET INCOME PER SHARE
Net income per share, basic and diluted (usd per share)	$ 0.35	$ 0.32
AVERAGE SHARES OUTSTANDING
Average shares outstanding, basic and diluted (shares)	205	205
Dividends paid per common share (usd per share)	$ 0.05	$ 0
COMPREHENSIVE INCOME (LOSS)
Net income	$ 72	$ 65
Other comprehensive income (loss), net of tax
Unrealized translation loss	(9)	(4)
Pension and other postretirement obligation adjustment	(2)	0
Other comprehensive loss	(11)	(4)
Comprehensive income	$ 61	$ 61

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2016	Sep. 30, 2016
Current assets
Cash and cash equivalents	$ 236	$ 172
Accounts receivable	353	363
Inventories	141	139
Other assets	29	56
Total current assets	759	730
Noncurrent assets
Cost	739	727
Accumulated depreciation	408	403
Net property, plant and equipment	331	324
Goodwill and intangibles	270	267
Equity method investments	30	26
Deferred income taxes	386	389
Other assets	89	89
Total noncurrent assets	1,106	1,095
Total assets	1,865	1,825
Current liabilities
Short-term debt	75	0
Current portion of long-term debt	15	19
Trade and other payables	146	177
Accrued expenses and other liabilities	257	204
Total current liabilities	493	400
Noncurrent liabilities
Long-term debt	650	724
Employee benefit obligations	854	886
Deferred income taxes	2	2
Other liabilities	152	143
Total noncurrent liabilities	1,658	1,755
Commitments and contingencies
Preferred stock, no par value, 40 shares authorized; no shares issued and outstanding	0	0
Common stock, par value $0.01 per share, 400 shares authorized; 205 shares issued and outstanding at December 31, 2016 and September 30, 2016	2	2
Paid-in capital	710	710
Retained earnings	62	0
Parent company investment	(1,052)	(1,039)
Accumulated other comprehensive loss	(8)	(3)
Total stockholders’ (deficit) equity	(286)	(330)
Total liabilities and stockholders’ (deficit) equity	$ 1,865	$ 1,825

Condensed Consolidated Balance4

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2016	Sep. 30, 2016
Statement of Financial Position [Abstract]
Preferred stock authorized (shares)	40,000,000	40,000,000
Preferred stock issued (shares)	0	0
Preferred stock outstanding (shares)	0	0
Common stock, par value (usd per share)	$ 0.01	$ 0.01
Common stock authorized (shares)	400,000,000	400,000,000
Common stock issued (shares)	205,000,000	205,000,000
Common stock outstanding (shares)	205,000,000	205,000,000

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions		3 Months Ended
		Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities
Net income		$ 72	$ 65
Adjustments to reconcile income to cash flows from operating activities
Depreciation and amortization		9	9
Debt issuance cost amortization		1	0
Equity income from affiliates		(4)	(3)
Distributions from equity affiliates		0	4
Pension contributions		(3)	(1)
Gain on pension and other postretirement plan remeasurements		(8)	0
Stock-based compensation expense		1	0
Change in assets and liabilities
Accounts receivable	[1]	10	13
Inventories	[1]	(2)	(2)
Payables and accrued liabilities	[1]	23	(37)
Other assets and liabilities	[1]	(11)	(8)
Total cash provided by operating activities		88	40
Cash flows from investing activities
Additions to property, plant and equipment		(9)	(5)
Purchase of operations - net of cash acquired		0	(4)
Other investing activities		(1)	0
Total cash used in investing activities		(10)	(9)
Cash flows from financing activities
Net transfers to parent		(2)	(31)
Proceeds from borrowings		75	0
Repayments on borrowings		(79)	0
Cash dividends paid		(10)	0
Total cash used in financing activities		(16)	(31)
Effect of currency exchange rate changes on cash and cash equivalents		2	0
Increase in cash and cash equivalents		64	0
Cash and cash equivalents - beginning of period		172	0
Cash and cash equivalents - end of period		$ 236	$ 0
[1]	Excludes changes resulting from operations acquired or sold.

Basis of Presentation

Basis of Presentation	3 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Basis of Presentation	BASIS OF PRESENTATION Valvoline Inc. (“Valvoline” or the “Company”) is a subsidiary of Ashland Global Holdings Inc. (which together with its predecessors and consolidated subsidiaries is referred to as “Ashland” or “Parent”). On September 22, 2015, Ashland announced that its Board of Directors approved proceeding with a plan to separate Ashland into two independent, publicly traded companies comprising of the Valvoline business and the specialty chemicals businesses (the “Separation”). Following a series of restructuring steps, Valvoline was incorporated in May 2016, and prior to the completion of the Company’s initial public offering (“IPO”) on September 28, 2016, substantially all of the historical Valvoline business reported by Ashland, as well as certain other legacy Ashland assets and liabilities, were transferred to Valvoline. After completing the IPO, Ashland owns approximately 83% of the total outstanding shares of Valvoline’s common stock. Subject to market conditions and other factors, Ashland presently intends to distribute the remaining Valvoline shares in 2017 following the release of March-quarter earnings results by both Ashland and Valvoline. The contribution of the Valvoline business by Ashland to Valvoline was treated as a reorganization of entities under common Ashland control. As a result, Valvoline is retrospectively presenting the condensed consolidated financial statements of Valvoline and its subsidiaries for periods presented prior to the completion of the IPO, which have been prepared a stand-alone basis and derived from Ashland’s consolidated financial statements and accounting records using the historical results of operations, and assets and liabilities attributed to Valvoline’s operations, and includes allocations of expenses from Ashland. The condensed consolidated financial statements for periods presented subsequent to the completion of the IPO reflect the consolidated operations of Valvoline and its majority-owned subsidiaries as a separate, stand-alone entity. For periods prior to the completion of the IPO, transactions between Valvoline and Ashland were considered to be effectively settled for cash at the time the transactions were recorded. These transactions and net cash transfers to and from Ashland’s centralized cash management system are reflected as a component of Parent company investment on the Condensed Consolidated Balance Sheets and as a financing activity within the accompanying Condensed Consolidated Statements of Cash Flows. The Parent company investment on the Condensed Consolidated Balance Sheets represents the cumulative net investment by Ashland in Valvoline, including net income through the completion of the IPO and net cash transfers to and from Ashland. The accompanying unaudited condensed consolidated financial statements have been prepared by Valvoline in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and Securities and Exchange Commission regulations for interim financial reporting, which do not include all information and footnote disclosures normally included in annual financial statements. Therefore, these condensed consolidated financial statements should be read in conjunction with Valvoline’s Annual Report on Form 10-K for the fiscal year ended September 30, 2016. Certain prior period amounts have been reclassified to conform to current presentation. The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make use of estimates and assumptions that affect the reported amounts and disclosures. Actual results may vary from these estimates. In the opinion of management, all adjustments considered necessary for a fair presentation have been included herein, and the assumptions underlying the condensed consolidated financial statements for these interim periods are reasonable. The results for the interim periods are not necessarily indicative of results to be expected for the entire year. New accounting standards A description of new U.S. GAAP accounting standards issued and adopted during the current year is required in interim financial reporting. A detailed listing of all new accounting standards relevant to Valvoline is included in the Annual Report on Form 10-K for the fiscal year ended September 30, 2016. The following standard relevant to Valvoline was adopted in the current period. In April 2015, the FASB issued accounting guidance to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement. Cloud computing arrangements represent the delivery of hosted services over the internet which includes software, platforms, infrastructure and other hosting arrangements. Under the guidance, customers that gain access to software in a cloud computing arrangement account for the software as internal-use software only if the arrangement includes a software license. Valvoline adopted this standard on a prospective basis on October 1, 2016. As a result, certain costs related to these arrangements will be expensed when incurred.

Accounts Receivable

Accounts Receivable	3 Months Ended
	Dec. 31, 2016
Receivables [Abstract]
Accounts Receivable	ACCOUNTS RECEIVABLE The following summarizes Valvoline’s accounts receivable as of the Condensed Consolidated Balance Sheet dates: (In millions) December 31 September 30 Trade and other accounts receivable $ 359 $ 368 Less: Allowance for doubtful accounts (6 ) (5 ) $ 353 $ 363

Inventories

Inventories	3 Months Ended
	Dec. 31, 2016
Inventory Disclosure [Abstract]
Inventories	INVENTORIES Inventories are carried at the lower of cost or market value. Inventories are primarily stated at cost using the weighted-average cost method. In addition, certain lubricants are valued at cost using the last-in, first-out (“LIFO”) method. The following summarizes Valvoline’s inventories as of the Condensed Consolidated Balance Sheet dates: (In millions) December 31 September 30 Finished products $ 147 $ 149 Raw materials, supplies and work in process 24 21 LIFO reserves (28 ) (29 ) Obsolete inventory reserves (2 ) (2 ) $ 141 $ 139

Debt

Debt	3 Months Ended
	Dec. 31, 2016
Debt Disclosure [Abstract]
Debt	DEBT The following table summarizes Valvoline’s current and long-term debt as of the dates reported in the Condensed Consolidated Balance Sheets: (In millions) December 31 2016 September 30 2016 Senior Notes $ 375 $ 375 Term Loan A 296 375 Accounts Receivable Securitization 75 — Revolver — — Other (a) (6 ) (7 ) Total debt $ 740 $ 743 Short-term debt 75 — Current portion of long-term debt 15 19 Long-term debt $ 650 $ 724 (a) At December 31, 2016, Other includes $8 million of debt issuance cost discounts and $2 million of debt acquired through acquisitions. At September 30, 2016, Other included $9 million of debt issuance cost discounts and $2 million of debt acquired through acquisitions. At December 31, 2016, Valvoline’s long-term debt (including current portion and excluding debt issuance costs) had a carrying value of $673 million , compared to a fair value of $688 million . At September 30, 2016, Valvoline’s long-term debt (including current portion and excluding debt issuance costs) had a carrying value of $752 million , compared to a fair value of $771 million . Borrowings under the Term Loans (as defined below) are at variable interest rates and accordingly their carrying amounts approximate fair value. The fair value of the 5.500% senior unsecured notes due 2024 (“Senior Notes”) is based on quoted market prices, which are Level 1 inputs within the fair value hierarchy. Accounts Receivable Securitization In November 2016, Valvoline entered into a $125 million accounts receivable securitization facility (the “2017 Accounts Receivable Securitization Facility”) with various financial institutions. The Company may from time to time, obtain up to $125 million (in the form of cash or letters of credit) through the sale of an undivided interest in its accounts receivable. The agreement has a term of one year but is extendable at the discretion of the Company and the financial institutions. The Company accounts for the 2017 Accounts Receivable Securitization Facility as secured borrowings, which are classified as Short-term debt and the receivables sold are included in Accounts receivable in the Condensed Consolidated Balance Sheets. During the first quarter of 2017, Valvoline borrowed $75 million under the 2017 Accounts Receivable Securitization Facility and used the net proceeds to repay an equal amount of the Term Loan A. As a result, the Company recognized an immaterial charge related to the accelerated amortization of previously capitalized debt issuance costs, which is included in Net interest and other financing expense in the Condensed Consolidated Statements of Comprehensive Income for the three months ended December 31, 2016. The weighted-average interest rate for this instrument during the period borrowings were outstanding in the first quarter of 2017 was 1.5% . Senior Credit Agreement The 2016 Senior Credit Agreement provided for an aggregate principal amount of $1,325 million in senior secured credit facilities (“2016 Credit Facilities”), composed of (i) a five years $875 million term loan A facility (“Term Loans”) and (ii) a five years $450 million revolving credit facility (including a $100 million letter of credit sublimit) (“Revolver”). At December 31, 2016, there were no borrowings under the Revolver and the total borrowing capacity remaining under the Revolver was $428 million , due to a reduction of $22 million for letters of credit outstanding. The 2016 Senior Credit Agreement contains usual and customary representations and warranties, and usual and customary affirmative and negative covenants, including limitations on liens, additional indebtedness, investments, restricted payments, asset sales, mergers, affiliate transactions and other customary limitations, as well as financial covenants (including maintenance of a maximum consolidated net leverage ratio and a minimum consolidated interest coverage ratio). As of the end of any fiscal quarter, the maximum consolidated net leverage ratio and minimum consolidated interest coverage ratio permitted under the 2016 Senior Credit Agreement are 4.5 and 3.0 , respectively. As of December 31, 2016, Valvoline is in compliance with all covenants under the 2016 Senior Credit Agreement.

Income Taxes

Income Taxes	3 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Income Taxes	INCOME TAXES Current Fiscal year Valvoline’s estimated annual effective income tax rate used to determine income tax expense in interim financial reporting for the year ending September 30, 2017 is 34.6% . The overall effective tax rate was 34.5% for the three months ended December 31, 2016 and was impacted by a net favorable benefit of discrete items. Prior Fiscal year Valvoline’s annual effective income tax rate used to determine income tax expense in interim financial reporting for the year ended September 30, 2016 was 33.7% . The overall effective tax rate was 32.3% for the three months ended December 31, 2015 . The prior tax rate for the period was favorably impacted primarily by the reinstatement of the research and development tax credit. Unrecognized tax benefits Valvoline recognized less than $1 million of uncertain tax positions for the three months ended December 31, 2016, all of which related to increases in positions taken in the current year. Valvoline expects no decrease in the amount of accrual for uncertain tax positions in the next twelve months. However, it is reasonably possible that there could be material changes to the amount of uncertain tax positions due to activities of the taxing authorities, settlement of audit issues, reassessment of existing uncertain tax positions, or the expiration of applicable statute of limitations; however, Valvoline is not able to estimate the impact of these items at this time. Tax Matters Agreement For the periods prior to Separation from Ashland, Valvoline will be included in Ashland’s consolidated U.S. and state income tax returns and in tax returns of certain Ashland international subsidiaries (collectively, the “Ashland Group Returns”). Under the Tax Matters Agreement between Valvoline and Ashland that was entered into on September 22, 2016, Ashland will generally make all necessary tax payments to the relevant tax authorities with respect to Ashland Group Returns, and Valvoline will make tax sharing payments to Ashland, inclusive of tax attributes utilized. The amount of the tax sharing payments will generally be determined as if Valvoline and each of its relevant subsidiaries included in the Ashland Group Returns filed their own consolidated, combined or separate tax returns for the periods prior to Separation that include only Valvoline and/or its relevant subsidiaries, as the case may be. Total net liabilities related to these and other obligations owed to Ashland under the Tax Matters Agreement are $83 million and $66 million at December 31, 2016 and September 30, 2016, respectively. The net liability at December 31, 2016 consisted of receivables from Parent of $5 million recorded in other current assets, $20 million included in Accrued expenses and other liabilities, and $68 million recorded in other long-term liabilities in the Condensed Consolidated Balance Sheets. As of September 30, 2016, the net liability consisted of receivables from Parent of $5 million recorded in other current assets and $71 million recorded in other long-term liabilities in the Condensed Consolidated Balance Sheets.

Employee Benefit Plans

Employee Benefit Plans	3 Months Ended
	Dec. 31, 2016
Compensation and Retirement Disclosure [Abstract]
Employee Benefit Plans	EMPLOYEE BENEFIT PLANS During September 2016, Ashland transferred a substantial portion of its U.S. qualified pension and non-qualified U.S. pension plans as well as certain other postretirement obligations to Valvoline as part of the separation process. Prior to the transfer, Valvoline accounted for its participation in the Ashland sponsored pension and other postretirement benefit plans as multi-employer plans. For purposes of these financial statements, costs for multi-employer plans were allocated based on Valvoline employee’s participation in the plan prior to September 1, 2016. Subsequent to the transfer from Ashland, Valvoline accounts for the plans as single-employer plans recognizing the full amount of any costs, gains, and net liabilities within the condensed consolidated financial statements. The total pension and other postretirement benefit income accounted for under the single employer plan method was $25 million during the three months ended December 31, 2016 primarily recognized within Non-service income and gains on pension and other postretirement plans in the Condensed Consolidated Statements of Comprehensive Income. The total pension income allocated to Valvoline related to multi-employer pension plans was income of $1 million for the three months ended December 31, 2015 primarily within Non-service income and gains on pension and other postretirement plans in the Condensed Consolidated Statements of Comprehensive Income. The net periodic benefit costs for the pension and other postretirement benefit plans are disclosed in further below. Contributions to the pension plans were approximately $3 million during the three months ended December 31, 2016. Expected contributions to pension plans for the remainder of 2017 are approximately $12 million . Plan amendments and remeasurements Effective January 1, 2017, Valvoline discontinued certain other postretirement health and life insurance benefits. The effect of these plan amendments resulted in a remeasurement gain of $8 million within Non-service income and gains on pension and other postretirement plans in the Condensed Consolidated Statements of Comprehensive Income for the three months ended December 31, 2016. Components of net periodic benefit costs (income) For segment reporting purposes, service cost is proportionately allocated to each reportable segment, while all other components of net periodic benefit income are recognized within Unallocated and other. The following table summarizes the components of pension and other postretirement benefit income. For the three months ended December 31, 2015, these amounts were generally related to allocations to Valvoline under a multi-employer plan. Other postretirement benefits Pension benefits (In millions) 2016 2015 2016 2015 Three months ended December 31 Service cost $ 1 $ 2 $ — $ — Interest cost 21 6 — — Expected return on plan assets (36 ) (9 ) — — Amortization of prior service credit — — (3 ) — Actuarial gain — — (8 ) — Net periodic benefit income $ (14 ) $ (1 ) $ (11 ) $ — Deferred compensation investments Deferred compensation investments consist of Level 1 measurements within the fair value hierarchy, which are observable inputs such as unadjusted quoted prices in active markets for identical assets and liabilities. Valvoline had $34 million of non-qualified benefit plan investments as of December 31 and September 30, 2016, which primarily consist of fixed income U.S government bonds and are classified as other noncurrent assets in the Condensed Consolidated Balance Sheets. Gains and losses related to deferred compensation investments are immediately recognized within the Condensed Consolidated Statements of Comprehensive Income.

Litigation, Claims and Continge

Litigation, Claims and Contingencies	3 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Litigation, Claims and Contingencies	LITIGATION, CLAIMS AND CONTINGENCIES There are various claims, lawsuits and administrative proceedings pending or threatened against Valvoline and its various subsidiary companies. Such actions are with respect to commercial and tax disputes, product liability, toxic tort liability, environmental, and other matters which seek remedies or damages, in some cases in substantial amounts. While Valvoline cannot predict with certainty the outcome of such actions, it believes that adequate reserves have been recorded where appropriate and losses already recognized with respect to such actions were not material as of December 31, 2016 and September 30, 2016 . There is a reasonable possibility that a loss exceeding amounts already recognized may be incurred related to these actions; however, Valvoline currently believes that such potential losses will not be material.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Dec. 31, 2016
Earnings Per Share [Abstract]
Earnings Per Share	EARNINGS PER SHARE The following is the computation of basic and diluted earnings per share (“EPS”). Earnings per share is reported under the treasury stock method. Three months ended December 31 (In millions except per share data) 2016 2015 Numerator Net income $ 72 $ 65 Denominator Weighted-average shares used to compute basic EPS 205 205 Effect of dilutive securities (a) — — Weighted-average shares used to compute diluted EPS 205 205 Earnings per share Basic $ 0.35 $ 0.32 Diluted $ 0.35 $ 0.32 (a) During the three months ended December 31, 2016, the Company issued share-based awards to six non-employee directors. These awards had no material impact on earnings per share.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Dec. 31, 2016
Equity [Abstract]
Stockholders' Equity	STOCKHOLDERS’ EQUITY Stockholder dividends On November 15, 2016, the Company’s Board of Directors announced a quarterly cash dividend of $0.049 per share of common stock to eligible shareholders of record as of December 5, 2016. A total amount of $10 million was paid on December 20, 2016. Of this $10 million dividend payment, $8 million was paid to Ashland as they hold approximately 83% of the outstanding common stock of Valvoline. Accumulated other comprehensive income (loss) Components of other comprehensive income (loss) recorded in the Condensed Consolidated Statements of Comprehensive Income are presented in the following table, before tax and net of tax effects. 2016 2015 (In millions) Before tax Tax expense Net of tax Before tax Tax expense Net of tax Three months ended December 31 Other comprehensive income (loss) Unrealized translation loss $ (9 ) $ — $ (9 ) $ (5 ) $ 1 $ (4 ) Pension obligation adjustment: Amortization of unrecognized prior service credits included in net income (a) (3 ) 1 (2 ) — — — Total other comprehensive (loss) income $ (12 ) $ 1 $ (11 ) $ (5 ) $ 1 $ (4 ) (a) Amortization of unrecognized prior service credits are included in net periodic benefit income for pension and other postretirement plans and are included in Non-service income and gains on pension and other postretirement plans in the Condensed Consolidated Statements of Comprehensive Income. In accordance with U.S. GAAP, as disclosed in the table above, certain pension costs are amortized from accumulated other comprehensive loss and recognized in net income. See Note 6 of Notes to Condensed Consolidated Financial Statements for more information.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Dec. 31, 2016
Related Party Transactions [Abstract]
Related Party Transactions	RELATED PARTY TRANSACTIONS Financial assets Ashland is party to an agreement to sell accounts receivable for a Valvoline customer in the form of drafts or bills of exchange to a financial institution. Each draft constitutes an order to pay for obligations of the customer to Ashland arising from the sale of goods to the customer. The intention of the arrangement is to decrease the time accounts receivable is outstanding and increase cash flows as Ashland in turn remits payment to Valvoline. At December 31, 2016 and September 30, 2016, the amount of accounts receivable sold by Ashland to the financial institution was $11 million and $29 million , respectively. Derivative instruments Until the IPO, Valvoline participated in Ashland’s centralized derivative programs that engage in certain hedging activities, which Ashland used to manage its exposure to fluctuations in foreign currencies. Gains and losses related to a hedge were either recognized in Ashland’s income immediately, to offset the gain or loss on the hedged item, or deferred and recorded in the equity section of Ashland’s balance sheet as a component of accumulated other comprehensive loss and subsequently recognized in Ashland’s income when the underlying hedged item was recognized in earnings. As a result, gains or losses on hedges during the three months ended December 31, 2015 were not material and are reflected in Valvoline’s Condensed Consolidated Statements of Comprehensive Income through allocation from Ashland in Selling, general and administrative expense. Valvoline began its own hedging program in late September 2016 to manage exposure to fluctuations in foreign currency with an outstanding notional contract value of $22 million as of December 31, 2016. All derivative instruments are recognized as either assets or liabilities on the Condensed Consolidated Balance Sheets and are measured at fair value. As of December 31 and September 30, 2016, these balances were not material. Changes in the fair value of all derivatives are recognized immediately in income unless the derivative qualifies as a hedge of future cash flows or a hedge of a net investment in a foreign operation. Gains and losses related to a hedge are either recognized in income immediately to offset the gain or loss on the hedged item, or deferred and recorded in the stockholders’ equity section of the Condensed Consolidated Balance Sheets as a component of accumulated other comprehensive income and subsequently recognized in the Condensed Consolidated Statements of Comprehensive Income when the hedged item affects net income. The ineffective portion of the change in fair value of a hedge is recognized in income immediately. Gains and losses recognized during the three months ended December 31, 2016 were not material and were recorded in Selling, general and administrative expense in the Condensed Consolidated Statements of Comprehensive Income. Stock incentive plans Valvoline has historically participated in Ashland’s stock incentive plans for key employees and directors, primarily in the form of stock appreciation rights (“SARs”), restricted stock, performance shares and other non-vested stock awards. Equity-based compensation expense has been either directly reported by or allocated to Valvoline based on the awards and terms previously granted to Ashland’s employees. Stock-based compensation expense recorded by Valvoline during the three months ended December 31, 2016 and 2015 were $1 million and $3 million , respectively. For the three months ended December 31, 2016 and 2015, these costs were primarily included within the Selling, general and administrative caption of the Condensed Consolidated Statements of Comprehensive Income. Compensation expense for stock incentive plans is generally based on the grant-date fair value over the appropriate vesting period. Ashland utilizes several industry-accepted valuation models to determine the fair value. Until the Separation occurs, Valvoline will continue to participate in Ashland’s equity-based compensation plans and record equity-based compensation expense based on the historical allocation of cost. Upon Separation, Ashland intends to convert these equity-based awards to Valvoline-based awards. Related party receivables and payables At December 31, 2016, Valvoline had receivables from Parent of $5 million recorded in other current assets on the Condensed Consolidated Balance Sheets. Also, at December 31, 2016, Valvoline had recorded payables to Parent of $44 million which was included in Accrued expenses and other liabilities in the Condensed Consolidated Balance Sheets, and $69 million which was recorded other long-term liabilities in the Condensed Consolidated Balance Sheets. The current liability relates primarily to current obligations owed to Ashland under the Tax Matters Agreement, transition services and other miscellaneous billings. The long-term liability relates primarily to the obligations under the Tax Matters Agreement. At September 30, 2016, Valvoline had receivables from Parent of $30 million recorded in other current assets on the Condensed Consolidated Balance Sheets. Also, at September 30, 2016, Valvoline had recorded obligations to Parent of $73 million , of which $2 million is in accrued expenses and other liabilities in the Condensed Consolidated Balance Sheets and $71 million was recorded in other noncurrent liabilities in the Condensed Consolidated Balance Sheets. The long-term liability related primarily to the obligations under the Tax Matters Agreement. Corporate allocations Prior to the completion of the IPO, Valvoline has historically utilized centralized functions of Ashland to support its operations, and in return, Ashland allocated certain of its expenses to Valvoline. Such expenses represent costs related, but not limited to, treasury, legal, accounting, insurance, information technology, payroll administration, human resources, incentive plans and other services. These costs, together with an allocation of Ashland overhead costs, are included within the Selling, general and administrative caption of the Condensed Consolidated Statements of Comprehensive Income. Where it was possible to specifically attribute such expenses to activities of Valvoline, amounts have been charged or credited directly to Valvoline without allocation or apportionment. Allocation of all other such expenses was based on a reasonable reflection of the utilization of service provided or benefits received by Valvoline during the periods presented on a consistent basis, such as headcount, square footage, tangible assets or sales. Valvoline’s management supports the methods used in allocating expenses and believes these methods to be reasonable estimates. There were no general corporate expenses allocated to Valvoline during the three months ended December 31, 2016 while there were $21 million allocated during the three months ended December 31, 2015. The following table summarizes the centralized and administrative support costs of Ashland that were allocated to Valvoline for the three months ended December 31, 2015. Three months ended December 31 (In millions) 2015 Information technology $ 5 Financial and accounting 3 Building services 3 Legal and environmental 2 Human resources 1 Shared services 1 Other general and administrative 6 Total $ 21

Reportable Segment Information

Reportable Segment Information	3 Months Ended
	Dec. 31, 2016
Segment Reporting [Abstract]
Reportable Segment Information	REPORTABLE SEGMENT INFORMATION Valvoline’s business is managed within reportable segments based on how operations are managed internally for the products and services sold to customers, including how the results are reviewed by the chief operating decision maker, which includes determining resource allocation methodologies used for reportable segments. Valvoline’s operating segments are identical to its reportable segments. Operating income is the primary measure reviewed by the chief operating decision maker in assessing each reportable segment’s financial performance. Valvoline’s businesses are managed within three reportable operating segments: Core North America, Quick Lubes, and International. Additionally, to reconcile to total consolidated Operating income, certain corporate and other non-operational costs are included in Unallocated and other. Reportable segment business descriptions The Core North America business segment sells Valvoline™ and other branded products in the United States and Canada to both consumers who perform their own automotive maintenance, referred to as “Do-It-Yourself” or “DIY” consumers, as well as to installer customers who use Valvoline products to service vehicles owned by “Do-It-For Me” or “DIFM” consumers. Valvoline sells to its DIY consumers through national retail auto parts stores, leading mass merchandisers and independent auto part stores. Valvoline sells to its DIFM consumers through installers in the United States and Canada. Installer customers include car dealers, general repair shops, and third-party quick lube chains. Valvoline directly serves these customers as well as through a network of distributors. Valvoline’s installer channel also sells branded products and solutions to heavy duty customers such as on-highway fleets and construction companies. Through its Quick Lubes business segment, Valvoline operates Valvoline Instant Oil Change (“VIOC”), a quick-lube service chain involving both Company-owned and franchised stores. Valvoline also sells its products and provides Valvoline branded signage to independent quick lube operators through its Express Care program. The International business segment sells Valvoline™ and Valvoline’s other branded products in approximately 140 countries outside of the United States and Canada. Valvoline’s key international markets include China, India, EMEA, Latin America and Australia Pacific. The International business segment sells products for both consumer and commercial vehicles and equipment, and is served by company-owned plants in the United States, Australia and the Netherlands, a joint venture-owned plant in India and third-party warehouses and toll manufacturers in other regions. In most of the countries where Valvoline’s products are sold, Valvoline goes to market via independent distributors. Unallocated and other generally includes items such as components of pension and other postretirement benefit plan expenses (excluding service costs, which are allocated to the reportable segments), certain significant company-wide restructuring activities and legacy costs or adjustments that relate to divested businesses, including $6 million of separation costs during the three months ended December 31, 2016 . Reportable segment results Results of Valvoline’s reportable segments are presented based on how operations are managed internally for the products and services sold to customers, including how the results are reviewed by the chief operating decision maker, which includes determining resource allocation methodologies used for reportable segments. The structure and practices are specific to Valvoline; therefore, the financial results of Valvoline’s reportable segments are not necessarily comparable with similar information for other companies. Valvoline allocates all costs to its reportable segments except for certain significant company-wide restructuring activities, such as the restructuring plans and/or other costs or adjustments that relate to former businesses that Valvoline no longer operates. The service cost component of pension and other postretirement benefits costs has historically been allocated to each reportable segment on a ratable basis (going forward the only plans with ongoing service costs will be international plans within the international segment), while the remaining components of pension and other postretirement benefits costs are recorded to Unallocated and other. During the three months ended December 31, 2016, the Company completed the acquisition of five locations within the Quick Lubes reportable segment. During the fourth quarter of fiscal 2016, the Company paid $4 million related to this acquisition, which has primarily been recorded in Goodwill and intangibles on the Condensed Consolidated Balance Sheets. The following table presents various financial information for each reportable segment: (In millions) For the three months ended December 31 2016 2015 Sales Core North America $ 237 $ 241 Quick Lubes 127 100 International 125 115 $ 489 $ 456 Operating Income Core North America $ 51 $ 53 Quick Lubes 29 23 International 20 16 Total operating segments $ 100 $ 92 Unallocated and other (a) 20 4 $ 120 $ 96 (a) During the three months ended December 31, 2016 , Unallocated and other includes a gain of $8 million related to other postretirement plan actuarial remeasurement and $6 million of separation costs.

Subsequent Events

Subsequent Events	3 Months Ended
	Dec. 31, 2016
Subsequent Events [Abstract]
Subsequent Events	SUBSEQUENT EVENTS Dividend declared On January 24, 2017, the Board of Directors of Valvoline Inc. declared a quarterly cash dividend of $0.049 per share on Valvoline common stock. The dividend is payable on March 15, 2017 to shareholders of record on March 1, 2017. Time-It Lube Acquisition On January 31, 2017, Valvoline completed the previously announced acquisition of the business assets related to 28 quick-lube stores from Time-It Lube LLC and Time-It Lube of Texas, LP for $48 million .

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Basis of Presentation	BASIS OF PRESENTATION Valvoline Inc. (“Valvoline” or the “Company”) is a subsidiary of Ashland Global Holdings Inc. (which together with its predecessors and consolidated subsidiaries is referred to as “Ashland” or “Parent”). On September 22, 2015, Ashland announced that its Board of Directors approved proceeding with a plan to separate Ashland into two independent, publicly traded companies comprising of the Valvoline business and the specialty chemicals businesses (the “Separation”). Following a series of restructuring steps, Valvoline was incorporated in May 2016, and prior to the completion of the Company’s initial public offering (“IPO”) on September 28, 2016, substantially all of the historical Valvoline business reported by Ashland, as well as certain other legacy Ashland assets and liabilities, were transferred to Valvoline. After completing the IPO, Ashland owns approximately 83% of the total outstanding shares of Valvoline’s common stock. Subject to market conditions and other factors, Ashland presently intends to distribute the remaining Valvoline shares in 2017 following the release of March-quarter earnings results by both Ashland and Valvoline. The contribution of the Valvoline business by Ashland to Valvoline was treated as a reorganization of entities under common Ashland control. As a result, Valvoline is retrospectively presenting the condensed consolidated financial statements of Valvoline and its subsidiaries for periods presented prior to the completion of the IPO, which have been prepared a stand-alone basis and derived from Ashland’s consolidated financial statements and accounting records using the historical results of operations, and assets and liabilities attributed to Valvoline’s operations, and includes allocations of expenses from Ashland. The condensed consolidated financial statements for periods presented subsequent to the completion of the IPO reflect the consolidated operations of Valvoline and its majority-owned subsidiaries as a separate, stand-alone entity. For periods prior to the completion of the IPO, transactions between Valvoline and Ashland were considered to be effectively settled for cash at the time the transactions were recorded. These transactions and net cash transfers to and from Ashland’s centralized cash management system are reflected as a component of Parent company investment on the Condensed Consolidated Balance Sheets and as a financing activity within the accompanying Condensed Consolidated Statements of Cash Flows. The Parent company investment on the Condensed Consolidated Balance Sheets represents the cumulative net investment by Ashland in Valvoline, including net income through the completion of the IPO and net cash transfers to and from Ashland. The accompanying unaudited condensed consolidated financial statements have been prepared by Valvoline in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and Securities and Exchange Commission regulations for interim financial reporting, which do not include all information and footnote disclosures normally included in annual financial statements. Therefore, these condensed consolidated financial statements should be read in conjunction with Valvoline’s Annual Report on Form 10-K for the fiscal year ended September 30, 2016. Certain prior period amounts have been reclassified to conform to current presentation. The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make use of estimates and assumptions that affect the reported amounts and disclosures. Actual results may vary from these estimates. In the opinion of management, all adjustments considered necessary for a fair presentation have been included herein, and the assumptions underlying the condensed consolidated financial statements for these interim periods are reasonable. The results for the interim periods are not necessarily indicative of results to be expected for the entire year.
New Accounting Standards	New accounting standards A description of new U.S. GAAP accounting standards issued and adopted during the current year is required in interim financial reporting. A detailed listing of all new accounting standards relevant to Valvoline is included in the Annual Report on Form 10-K for the fiscal year ended September 30, 2016. The following standard relevant to Valvoline was adopted in the current period. In April 2015, the FASB issued accounting guidance to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement. Cloud computing arrangements represent the delivery of hosted services over the internet which includes software, platforms, infrastructure and other hosting arrangements. Under the guidance, customers that gain access to software in a cloud computing arrangement account for the software as internal-use software only if the arrangement includes a software license. Valvoline adopted this standard on a prospective basis on October 1, 2016. As a result, certain costs related to these arrangements will be expensed when incurred.
Inventories	INVENTORIES Inventories are carried at the lower of cost or market value. Inventories are primarily stated at cost using the weighted-average cost method. In addition, certain lubricants are valued at cost using the last-in, first-out (“LIFO”) method.
Earnings Per Share	Earnings per share is reported under the treasury stock method.
Derivative Instruments	Derivative instruments Until the IPO, Valvoline participated in Ashland’s centralized derivative programs that engage in certain hedging activities, which Ashland used to manage its exposure to fluctuations in foreign currencies. Gains and losses related to a hedge were either recognized in Ashland’s income immediately, to offset the gain or loss on the hedged item, or deferred and recorded in the equity section of Ashland’s balance sheet as a component of accumulated other comprehensive loss and subsequently recognized in Ashland’s income when the underlying hedged item was recognized in earnings. As a result, gains or losses on hedges during the three months ended December 31, 2015 were not material and are reflected in Valvoline’s Condensed Consolidated Statements of Comprehensive Income through allocation from Ashland in Selling, general and administrative expense. Valvoline began its own hedging program in late September 2016 to manage exposure to fluctuations in foreign currency with an outstanding notional contract value of $22 million as of December 31, 2016. All derivative instruments are recognized as either assets or liabilities on the Condensed Consolidated Balance Sheets and are measured at fair value. As of December 31 and September 30, 2016, these balances were not material. Changes in the fair value of all derivatives are recognized immediately in income unless the derivative qualifies as a hedge of future cash flows or a hedge of a net investment in a foreign operation. Gains and losses related to a hedge are either recognized in income immediately to offset the gain or loss on the hedged item, or deferred and recorded in the stockholders’ equity section of the Condensed Consolidated Balance Sheets as a component of accumulated other comprehensive income and subsequently recognized in the Condensed Consolidated Statements of Comprehensive Income when the hedged item affects net income. The ineffective portion of the change in fair value of a hedge is recognized in income immediately. Gains and losses recognized during the three months ended December 31, 2016 were not material and were recorded in Selling, general and administrative expense in the Condensed Consolidated Statements of Comprehensive Income.

Accounts Receivable (Tables)

Accounts Receivable (Tables)	3 Months Ended
	Dec. 31, 2016
Receivables [Abstract]
Summary of Accounts Receivable	The following summarizes Valvoline’s accounts receivable as of the Condensed Consolidated Balance Sheet dates: (In millions) December 31 September 30 Trade and other accounts receivable $ 359 $ 368 Less: Allowance for doubtful accounts (6 ) (5 ) $ 353 $ 363

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Dec. 31, 2016
Inventory Disclosure [Abstract]
Summary of Inventory	The following summarizes Valvoline’s inventories as of the Condensed Consolidated Balance Sheet dates: (In millions) December 31 September 30 Finished products $ 147 $ 149 Raw materials, supplies and work in process 24 21 LIFO reserves (28 ) (29 ) Obsolete inventory reserves (2 ) (2 ) $ 141 $ 139

Debt (Tables)

Debt (Tables)	3 Months Ended
	Dec. 31, 2016
Debt Disclosure [Abstract]
Schedule of Long-term Debt	The following table summarizes Valvoline’s current and long-term debt as of the dates reported in the Condensed Consolidated Balance Sheets: (In millions) December 31 2016 September 30 2016 Senior Notes $ 375 $ 375 Term Loan A 296 375 Accounts Receivable Securitization 75 — Revolver — — Other (a) (6 ) (7 ) Total debt $ 740 $ 743 Short-term debt 75 — Current portion of long-term debt 15 19 Long-term debt $ 650 $ 724 (a) At December 31, 2016, Other includes $8 million of debt issuance cost discounts and $2 million of debt acquired through acquisitions. At September 30, 2016, Other included $9 million of debt issuance cost discounts and $2 million of debt acquired through acquisitions.

Employee Benefit Plans (Tables)

Employee Benefit Plans (Tables)	3 Months Ended
	Dec. 31, 2016
Compensation and Retirement Disclosure [Abstract]
Components of Benefit Costs	The following table summarizes the components of pension and other postretirement benefit income. For the three months ended December 31, 2015, these amounts were generally related to allocations to Valvoline under a multi-employer plan. Other postretirement benefits Pension benefits (In millions) 2016 2015 2016 2015 Three months ended December 31 Service cost $ 1 $ 2 $ — $ — Interest cost 21 6 — — Expected return on plan assets (36 ) (9 ) — — Amortization of prior service credit — — (3 ) — Actuarial gain — — (8 ) — Net periodic benefit income $ (14 ) $ (1 ) $ (11 ) $ —

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Dec. 31, 2016
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following is the computation of basic and diluted earnings per share (“EPS”). Earnings per share is reported under the treasury stock method. Three months ended December 31 (In millions except per share data) 2016 2015 Numerator Net income $ 72 $ 65 Denominator Weighted-average shares used to compute basic EPS 205 205 Effect of dilutive securities (a) — — Weighted-average shares used to compute diluted EPS 205 205 Earnings per share Basic $ 0.35 $ 0.32 Diluted $ 0.35 $ 0.32 (a) During the three months ended December 31, 2016, the Company issued share-based awards to six non-employee directors. These awards had no material impact on earnings per share.

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Dec. 31, 2016
Equity [Abstract]
Components of Other Comprehensive Income (Loss)	Components of other comprehensive income (loss) recorded in the Condensed Consolidated Statements of Comprehensive Income are presented in the following table, before tax and net of tax effects. 2016 2015 (In millions) Before tax Tax expense Net of tax Before tax Tax expense Net of tax Three months ended December 31 Other comprehensive income (loss) Unrealized translation loss $ (9 ) $ — $ (9 ) $ (5 ) $ 1 $ (4 ) Pension obligation adjustment: Amortization of unrecognized prior service credits included in net income (a) (3 ) 1 (2 ) — — — Total other comprehensive (loss) income $ (12 ) $ 1 $ (11 ) $ (5 ) $ 1 $ (4 ) (a) Amortization of unrecognized prior service credits are included in net periodic benefit income for pension and other postretirement plans and are included in Non-service income and gains on pension and other postretirement plans in the Condensed Consolidated Statements of Comprehensive Income.

Related Party Transactions (Tab

Related Party Transactions (Tables)	3 Months Ended
	Dec. 31, 2016
Related Party Transactions [Abstract]
Summary of Allocated Centralized and Administrative Support Costs	The following table summarizes the centralized and administrative support costs of Ashland that were allocated to Valvoline for the three months ended December 31, 2015. Three months ended December 31 (In millions) 2015 Information technology $ 5 Financial and accounting 3 Building services 3 Legal and environmental 2 Human resources 1 Shared services 1 Other general and administrative 6 Total $ 21

Reportable Segment Information

Reportable Segment Information (Tables)	3 Months Ended
	Dec. 31, 2016
Segment Reporting [Abstract]
Schedule of Segment Reporting Information	The following table presents various financial information for each reportable segment: (In millions) For the three months ended December 31 2016 2015 Sales Core North America $ 237 $ 241 Quick Lubes 127 100 International 125 115 $ 489 $ 456 Operating Income Core North America $ 51 $ 53 Quick Lubes 29 23 International 20 16 Total operating segments $ 100 $ 92 Unallocated and other (a) 20 4 $ 120 $ 96 (a) During the three months ended December 31, 2016 , Unallocated and other includes a gain of $8 million related to other postretirement plan actuarial remeasurement and $6 million of separation costs.

Basis of Presentation (Details)

Basis of Presentation (Details)	Dec. 31, 2016
Ashland
Related Party Transaction [Line Items]
Ashland ownership percentage	83.00%

Accounts Receivable (Details)

Accounts Receivable (Details) - USD ($) $ in Millions	Dec. 31, 2016	Sep. 30, 2016
Receivables [Abstract]
Trade and other accounts receivable	$ 359	$ 368
Less: Allowance for doubtful accounts	(6)	(5)
Accounts receivable	$ 353	$ 363

Inventories (Details)

Inventories (Details) - USD ($) $ in Millions	Dec. 31, 2016	Sep. 30, 2016
Inventory Disclosure [Abstract]
Finished products	$ 147	$ 149
Raw materials, supplies and work in process	24	21
LIFO reserves	(28)	(29)
Obsolete inventory reserves	(2)	(2)
Inventories	$ 141	$ 139

Debt - Schedule of Long Term De

Debt - Schedule of Long Term Debt (Details) - USD ($) $ in Millions	Dec. 31, 2016	Sep. 30, 2016
Debt Instrument [Line Items]
Debt gross	$ 673	$ 752
Short-term debt	75	0
Other	(6)	(7)
Total debt	740	743
Current portion of long-term debt	15	19
Long-term debt	650	724
Debt issuance cost discounts	8	9
Debt acquired through acquisitions	2	2
Line of Credit | Revolver
Debt Instrument [Line Items]
Debt gross	0
Short-term debt	0	0
2024 Notes | Senior Notes
Debt Instrument [Line Items]
Debt gross	375	375
Term Loan A Facility | Line of Credit | Secured Debt
Debt Instrument [Line Items]
Debt gross	296	375
2017 Accounts Receivable Securitization Facility | Line of Credit | Secured Debt
Debt Instrument [Line Items]
Short-term debt	$ 75	$ 0

Debt (Details)

Debt (Details) - USD ($)	1 Months Ended	3 Months Ended
	Nov. 30, 2016	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2016
Debt Instrument [Line Items]
Long-term debt gross		$ 673,000,000		$ 752,000,000
Long-term debt, fair value		688,000,000		771,000,000
Proceeds from borrowings		75,000,000	$ 0
2024 Notes | Senior Notes
Debt Instrument [Line Items]
Long-term debt gross		$ 375,000,000		375,000,000
Interest rate of debt		5.50%
2016 Credit Facilities
Debt Instrument [Line Items]
Principal amount of line of credit		$ 1,325,000,000
Remaining borrowing capacity		$ 428,000,000
2016 Credit Facilities | Line of Credit
Debt Instrument [Line Items]
Maximum consolidated leverage ratio		4.5
Minimum consolidated interest coverage ratio		3
Secured Debt | 2017 Accounts Receivable Securitization Facility
Debt Instrument [Line Items]
Principal amount of line of credit	$ 125,000,000
Proceeds from borrowings		$ 75,000,000
Secured Debt | 2017 Accounts Receivable Securitization Facility | Line of Credit
Debt Instrument [Line Items]
Term of debt	1 year
Weighted-average interest rate		1.50%
Secured Debt | Term Loan A Facility
Debt Instrument [Line Items]
Principal amount of line of credit		$ 875,000,000
Secured Debt | Term Loan A Facility | Line of Credit
Debt Instrument [Line Items]
Long-term debt gross		$ 296,000,000		$ 375,000,000
Term of debt		5 years
Revolver
Debt Instrument [Line Items]
Principal amount of line of credit		$ 450,000,000
Revolver | Line of Credit
Debt Instrument [Line Items]
Long-term debt gross		$ 0
Term of debt		5 years
Letter of Credit
Debt Instrument [Line Items]
Principal amount of line of credit		$ 100,000,000
Letter of Credit | 2016 Credit Facilities | Line of Credit
Debt Instrument [Line Items]
Letters of credit outstanding		$ 22,000,000

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2017	Sep. 30, 2016
Income Tax Contingency [Line Items]
Effective tax rate	34.50%	32.30%		33.70%
Uncertain tax positions from increases in positions taken in the current year	$ 1
Ashland
Income Tax Contingency [Line Items]
Obligations to related party				$ 73
Ashland | Other current assets
Income Tax Contingency [Line Items]
Receivables from related party	5			30
Ashland | Accrued expenses and other liabilities
Income Tax Contingency [Line Items]
Obligations to related party	44			2
Ashland | Other long-term liabilities
Income Tax Contingency [Line Items]
Obligations to related party	69			71
Tax Matters Agreement | Ashland
Income Tax Contingency [Line Items]
Obligations to related party	83			66
Tax Matters Agreement | Ashland | Other current assets
Income Tax Contingency [Line Items]
Receivables from related party	5			5
Tax Matters Agreement | Ashland | Accrued expenses and other liabilities
Income Tax Contingency [Line Items]
Obligations to related party	20
Tax Matters Agreement | Ashland | Other long-term liabilities
Income Tax Contingency [Line Items]
Obligations to related party	$ 68			$ 71
Scenario, Forecast
Income Tax Contingency [Line Items]
Effective tax rate			34.60%

Employee Benefit Plans - Narrat

Employee Benefit Plans - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2016
Defined Benefit Plan Disclosure [Line Items]
Pension and other postretirement benefit income	$ 25
Gain from actuarial remeasurements	8
U.S government bonds | Level 1
Defined Benefit Plan Disclosure [Line Items]
Non-qualified benefit plan investments	34		$ 34
Pension plan
Defined Benefit Plan Disclosure [Line Items]
Pension and other postretirement benefit income	14	$ 1
Pension plan contributions	3
Expected pension contributions for the remainder of 2017	12
Other postretirement benefit plan
Defined Benefit Plan Disclosure [Line Items]
Pension and other postretirement benefit income	$ 11	0
Multi-employer pension plan
Defined Benefit Plan Disclosure [Line Items]
Pension and other postretirement benefit income		$ 1

Employee Benefit Plans - Pensio

Employee Benefit Plans - Pension and Other Postretirement Benefit Costs (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Defined Benefit Plan Disclosure [Line Items]
Net periodic benefit cost (income)	$ (25)
Pension benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	1	$ 2
Interest cost	21	6
Expected return on plan assets	(36)	(9)
Amortization of prior service credit	0	0
Actuarial gain	0	0
Net periodic benefit cost (income)	(14)	(1)
Other postretirement benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	0	0
Interest cost	0	0
Expected return on plan assets	0	0
Amortization of prior service credit	(3)	0
Actuarial gain	(8)	0
Net periodic benefit cost (income)	$ (11)	$ 0

Earnings Per Share (Details)

Earnings Per Share (Details) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Dec. 31, 2016USD ($)director$ / sharesshares	Dec. 31, 2015USD ($)$ / sharesshares
Earnings Per Share [Abstract]
Net income | $	$ 72	$ 65
Weighted-average shares used to compute basic EPS (in shares)	205	205
Effect of dilutive securities (in shares)	0	0
Weighted-average shares used to compute diluted EPS (in shares)	205	205
Earnings per share, basic (usd per share) | $ / shares	$ 0.35	$ 0.32
Earnings per share, diluted (usd per share) | $ / shares	$ 0.35	$ 0.32
Number of non-employee directors | director	6

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions	Dec. 20, 2016	Nov. 15, 2016	Dec. 31, 2016
Class of Stock [Line Items]
Quarterly cash dividend declared (usd per share)		$ 0.049
Dividends paid	$ 10
Ashland
Class of Stock [Line Items]
Dividends paid	$ 8
Ashland ownership percentage			83.00%

Stockholders' Equity - Other Co

Stockholders' Equity - Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Before tax
Unrealized translation loss	$ (9)	$ (5)
Amortization of unrecognized prior service credits included in net income	(3)	0
Total other comprehensive (loss) income	(12)	(5)
Tax expense
Unrealized translation loss	0	1
Amortization of unrecognized prior service credits included in net income	1	0
Total other comprehensive (loss) income	1	1
Net of tax
Unrealized translation loss	(9)	(4)
Amortization of unrecognized prior service credits included in net income	(2)	0
Other comprehensive loss	$ (11)	$ (4)

Related Party Transactions - Na

Related Party Transactions - Narrative (Details) - USD ($)	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2016
Related Party Transaction [Line Items]
Stock based compensation expense	$ 1,000,000	$ 3,000,000
General corporate expenses allocated to Valvoline	0	$ 21,000,000
Hedging instrument | Fair value | Foreign currency derivative
Related Party Transaction [Line Items]
Notional amount of derivatives	22,000,000
Ashland
Related Party Transaction [Line Items]
Accounts receivable sold by Ashland to the financial institution	11,000,000		$ 29,000,000
Obligations to related party			73,000,000
Ashland | Other current assets
Related Party Transaction [Line Items]
Receivables from related party	5,000,000		30,000,000
Ashland | Accrued expenses and other liabilities
Related Party Transaction [Line Items]
Obligations to related party	44,000,000		2,000,000
Ashland | Other long-term liabilities
Related Party Transaction [Line Items]
Obligations to related party	$ 69,000,000		$ 71,000,000

Related Party Transactions - As

Related Party Transactions - Ashland Costs Allocated (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Related Party Transaction [Line Items]
General corporate expenses allocated to Valvoline	$ 0	$ 21
Ashland | Information technology
Related Party Transaction [Line Items]
General corporate expenses allocated to Valvoline		5
Ashland | Financial and accounting
Related Party Transaction [Line Items]
General corporate expenses allocated to Valvoline		3
Ashland | Building services
Related Party Transaction [Line Items]
General corporate expenses allocated to Valvoline		3
Ashland | Legal and environmental
Related Party Transaction [Line Items]
General corporate expenses allocated to Valvoline		2
Ashland | Human resources
Related Party Transaction [Line Items]
General corporate expenses allocated to Valvoline		1
Ashland | Shared services
Related Party Transaction [Line Items]
General corporate expenses allocated to Valvoline		1
Ashland | Other general and administrative
Related Party Transaction [Line Items]
General corporate expenses allocated to Valvoline		$ 6

Reportable Segment Informatio40

Reportable Segment Information - Narrative (Details) $ in Millions	3 Months Ended
	Dec. 31, 2016USD ($)countrylocationsegment	Sep. 30, 2016USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | segment	3
Quick Lubes | Acquisition of Quick-Lube Locations
Segment Reporting Information [Line Items]
Number of locations acquired | location	5
Payments to acquire quick-lube locations		$ 4
Operating Segments | International
Segment Reporting Information [Line Items]
Number of countries where our products are sold | country	140
Unallocated and Other
Segment Reporting Information [Line Items]
Separation costs	$ 6

Reportable Segment Informatio41

Reportable Segment Information - Financial Information by Segment (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Segment Reporting Information [Line Items]
Sales	$ 489	$ 456
Operating Income	120	96
Gain from actuarial remeasurements	8
Separation costs	6	0
Core North America
Segment Reporting Information [Line Items]
Sales	237	241
Quick Lubes
Segment Reporting Information [Line Items]
Sales	127	100
International
Segment Reporting Information [Line Items]
Sales	125	115
Operating Segments
Segment Reporting Information [Line Items]
Operating Income	100	92
Operating Segments | Core North America
Segment Reporting Information [Line Items]
Operating Income	51	53
Operating Segments | Quick Lubes
Segment Reporting Information [Line Items]
Operating Income	29	23
Operating Segments | International
Segment Reporting Information [Line Items]
Operating Income	20	16
Unallocated and Other
Segment Reporting Information [Line Items]
Operating Income	20	$ 4
Gain from actuarial remeasurements	8
Separation costs	$ 6

Subsequent Events (Details)

Subsequent Events (Details) $ / shares in Units, $ in Millions	Jan. 31, 2017USD ($)store	Jan. 24, 2017$ / shares	Nov. 15, 2016$ / shares
Subsequent Event [Line Items]
Quarterly cash dividend declared (usd per share)			$ 0.049
Subsequent Event
Subsequent Event [Line Items]
Quarterly cash dividend declared (usd per share)		$ 0.049
Subsequent Event | Time-It Lube
Subsequent Event [Line Items]
Number of stores in which business assets are expected to be acquired (store) | store	28
Consideration for Time-It Lube acquisition | $	$ 48