Valvoline (VVV) 10-Q 1 Aug 19 2019 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Jun. 30, 2019	Jul. 30, 2019
Cover page.
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2019
Document Transition Report	false
Entity File Number	001-37884
Entity Registrant Name	VALVOLINE INC
Entity Incorporation, State or Country Code	KY
Entity Tax Identification Number	30-0939371
Entity Address, Address Line One	100 Valvoline Way
Entity Address, City or Town	Lexington
Entity Address, State or Province	KY
Entity Address, Postal Zip Code	40509
City Area Code	859
Local Phone Number	357-7777
Title of 12(b) Security	Common stock, par value $0.01 per share
Trading Symbol	VVV
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Smaller Reporting Company	false
Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		188,189,958
Entity Central Index Key	0001674910
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Income - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Net Income (Loss) Attributable to Parent [Abstract]
Sales	$ 613	$ 577	$ 1,761	$ 1,691
Cost of sales	406	376	1,168	1,088
Gross profit	207	201	593	603
Selling, general and administrative expenses	116	110	334	328
Net legacy and separation-related (income) expenses	0	(3)	3	14
Equity and other income, net	(11)	(8)	(29)	(29)
Operating income	102	102	285	290
Net pension and other postretirement plan income	(2)	(10)	(7)	(30)
Net interest and other financing expenses	19	15	55	45
Income before income taxes	85	97	237	275
Income tax expense	20	33	56	154
Net income	$ 65	$ 64	$ 181	$ 121
NET INCOME PER SHARE
Basic (usd per share)	$ 0.34	$ 0.33	$ 0.96	$ 0.61
Diluted (usd per share)	$ 0.34	$ 0.33	$ 0.96	$ 0.61
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic (shares)	189	195	189	199
Diluted (shares)	189	196	189	200
COMPREHENSIVE INCOME
Net income	$ 65	$ 64	$ 181	$ 121
Other comprehensive income (loss), net of tax
Currency translation adjustments	1	(13)	(1)	(9)
Amortization of pension and other postretirement plan prior service credit	(3)	(3)	(7)	(7)
Other comprehensive loss	(2)	(16)	(8)	(16)
Comprehensive income	$ 63	$ 48	$ 173	$ 105

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Jun. 30, 2019	Sep. 30, 2018
Current assets
Cash and cash equivalents	$ 126	$ 96
Accounts receivable, net	423	409
Inventories, net	200	176
Prepaid expenses and other current assets	52	44
Total current assets	801	725
Noncurrent assets
Property, plant and equipment, net	455	420
Goodwill and intangibles, net	490	448
Equity method investments	35	31
Deferred income taxes	113	138
Other noncurrent assets	106	92
Total noncurrent assets	1,199	1,129
Total assets	2,000	1,854
Current liabilities
Current portion of long-term debt	7	30
Trade and other payables	163	178
Accrued expenses and other liabilities	242	203
Total current liabilities	412	411
Noncurrent liabilities
Long-term debt	1,334	1,292
Employee benefit obligations	322	333
Other noncurrent liabilities	184	176
Total noncurrent liabilities	1,840	1,801
Commitments and contingencies
Stockholders’ deficit
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;188 shares issued and outstanding at June 30, 2019 and September 30, 2018	2	2
Paid-in capital	13	7
Retained deficit	(291)	(399)
Accumulated other comprehensive income	24	32
Total stockholders’ deficit	(252)	(358)
Total liabilities and stockholders’ deficit	$ 2,000	$ 1,854

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2019	Sep. 30, 2018
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)	188,000,000	188,000,000
Common stock outstanding (shares)	188,000,000	188,000,000

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Deficit - USD ($) shares in Millions, $ in Millions	Total	Common stock	Paid-in capital	Retained deficit	Accumulated other comprehensive income
Common stock outstanding, at beginning of period (shares) at Sep. 30, 2017		203
Balance at beginning of period at Sep. 30, 2017	$ (117)	$ 2	$ 5	$ (167)	$ 43
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(10)			(10)
Dividends paid	(15)			(15)
Stock-based compensation	2		2
Repurchases of common stock (shares)		(2)
Repurchases of common stock	(39)			(39)
Currency translation adjustments	1				1
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests	(14)		(7)	(7)
Amortization of pension and other postretirement prior service credits in income, net of tax	(2)				(2)
Common stock outstanding, at end of period (shares) at Dec. 31, 2017		201
Balance at end of period at Dec. 31, 2017	(194)	$ 2	0	(238)	42
Common stock outstanding, at beginning of period (shares) at Sep. 30, 2017		203
Balance at beginning of period at Sep. 30, 2017	(117)	$ 2	5	(167)	43
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	121
Currency translation adjustments	(9)
Amortization of pension and other postretirement prior service credits in income, net of tax	(7)
Common stock outstanding, at end of period (shares) at Jun. 30, 2018		193
Balance at end of period at Jun. 30, 2018	(288)	$ 2	6	(323)	27
Common stock outstanding, at beginning of period (shares) at Dec. 31, 2017		201
Balance at beginning of period at Dec. 31, 2017	(194)	$ 2	0	(238)	42
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	67			67
Dividends paid	(15)			(15)
Stock-based compensation	2		3	(1)
Repurchases of common stock (shares)		(4)
Repurchases of common stock	(87)			(87)
Currency translation adjustments	3				3
Amortization of pension and other postretirement prior service credits in income, net of tax	(2)				(2)
Common stock outstanding, at end of period (shares) at Mar. 31, 2018		197
Balance at end of period at Mar. 31, 2018	(226)	$ 2	3	(274)	43
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	64			64
Dividends paid	(15)			(15)
Stock-based compensation	3		3
Repurchases of common stock (shares)		(4)
Repurchases of common stock	(98)			(98)
Currency translation adjustments	(13)				(13)
Amortization of pension and other postretirement prior service credits in income, net of tax	(3)				(3)
Common stock outstanding, at end of period (shares) at Jun. 30, 2018		193
Balance at end of period at Jun. 30, 2018	$ (288)	$ 2	6	(323)	27
Common stock outstanding, at beginning of period (shares) at Sep. 30, 2018	188	188
Balance at beginning of period at Sep. 30, 2018	$ (358)	$ 2	7	(399)	32
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	53			53
Dividends paid	(20)			(20)
Stock-based compensation	1		1
Currency translation adjustments	(4)				(4)
Amortization of pension and other postretirement prior service credits in income, net of tax	(2)				(2)
Common stock outstanding, at end of period (shares) at Dec. 31, 2018		188
Balance at end of period at Dec. 31, 2018	$ (343)	$ 2	8	(379)	26
Common stock outstanding, at beginning of period (shares) at Sep. 30, 2018	188	188
Balance at beginning of period at Sep. 30, 2018	$ (358)	$ 2	7	(399)	32
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	181
Currency translation adjustments	(1)
Amortization of pension and other postretirement prior service credits in income, net of tax	$ (7)
Common stock outstanding, at end of period (shares) at Jun. 30, 2019	188	188
Balance at end of period at Jun. 30, 2019	$ (252)	$ 2	13	(291)	24
Common stock outstanding, at beginning of period (shares) at Dec. 31, 2018		188
Balance at beginning of period at Dec. 31, 2018	(343)	$ 2	8	(379)	26
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	63			63
Dividends paid	(20)			(20)
Stock-based compensation	2		2
Currency translation adjustments	2				2
Amortization of pension and other postretirement prior service credits in income, net of tax	(2)				(2)
Common stock outstanding, at end of period (shares) at Mar. 31, 2019		188
Balance at end of period at Mar. 31, 2019	(298)	$ 2	10	(336)	26
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	65			65
Dividends paid	(20)			(20)
Stock-based compensation	3		3
Currency translation adjustments	1				1
Amortization of pension and other postretirement prior service credits in income, net of tax	$ (3)				(3)
Common stock outstanding, at end of period (shares) at Jun. 30, 2019	188	188
Balance at end of period at Jun. 30, 2019	$ (252)	$ 2	$ 13	$ (291)	$ 24

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Deficit (Parenthetical) - $ / shares	3 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017
Statement of Stockholders' Equity [Abstract]
Dividends paid per common share (usd per share)	$ 0.106	$ 0.106	$ 0.106	$ 0.0745	$ 0.0745	$ 0.0745

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions		9 Months Ended
		Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities
Net income		$ 181	$ 121
Adjustments to reconcile net income to cash flows from operating activities
Depreciation and amortization		43	39
Debt issuance cost and discount amortization		2	2
Deferred income taxes		0	71
Equity income from unconsolidated affiliates, net of distributions		(4)	(4)
Pension contributions		(7)	(13)
Stock-based compensation expense		8	10
Other operating activities, net		0	(1)
Change in assets and liabilities
Accounts receivable	[1]	(48)	(80)
Inventories	[1]	(11)	(23)
Payables and accrued liabilities	[1]	34	12
Other assets and liabilities	[1]	16	47
Total cash provided by operating activities		214	181
Cash flows from investing activities
Additions to property, plant and equipment		(73)	(51)
Acquisitions, net of cash acquired		(50)	(71)
Other investing activities, net		(1)	5
Total cash used in investing activities		(124)	(117)
Cash flows from financing activities
Proceeds from borrowings, net of issuance costs		743	170
Repayments on borrowings		(727)	(39)
Repurchases of common stock		0	(220)
Payments for purchase of additional ownership in subsidiary		(1)	(15)
Cash dividends paid		(60)	(45)
Other financing activities		(4)	(6)
Total cash used in financing activities		(49)	(155)
Effect of currency exchange rate changes on cash, cash equivalents, and restricted cash		0	(3)
Increase (decrease) in cash, cash equivalents, and restricted cash		41	(94)
Cash, cash equivalents, and restricted cash - beginning of period		96	201
Cash, cash equivalents, and restricted cash - end of period		$ 137	$ 107
[1]	Excludes changes resulting from operations acquired.

Basis of Presentation and Signi

Basis of Presentation and Significant Accounting Policies	9 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Basis of Presentation and Significant Accounting Policies	BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited condensed consolidated financial statements have been prepared by Valvoline Inc. (“Valvoline” or the “Company”) in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and Securities and Exchange Commission (“SEC”) 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, 2018. 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, the assumptions underlying the condensed consolidated financial statements for these interim periods are reasonable, and all adjustments considered necessary for a fair presentation have been made and are of a normal recurring nature unless otherwise disclosed herein. The results for interim periods are not necessarily indicative of those to be expected for the entire year. Certain prior period amounts have been reclassified to conform to the current presentation. Recent accounting pronouncements The following standards relevant to Valvoline were either issued or adopted in the current year, or are expected to have a meaningful impact on Valvoline in future periods. Recently adopted In the first fiscal quarter of 2019, Valvoline adopted the following: • In May 2014, the Financial Accounting Standards Board (“FASB”) issued accounting guidance, which established a single comprehensive model for entities to use in accounting for revenue from contracts with customers and superseded most industry-specific revenue recognition guidance. This new guidance introduced a five-step model for revenue recognition focused on the transfer of control, as opposed to the transfer of risk and rewards under prior guidance. Valvoline adopted this new revenue recognition guidance on October 1, 2018 using the modified retrospective method applied to those contracts that were not completed at the date of adoption. Under this method, the new revenue recognition guidance has been applied prospectively from the date of adoption, while prior period financial statements continue to be reported in accordance with the previous guidance. The cumulative effect of the changes at adoption was recognized through an increase to opening retained deficit of $13 million, net of tax, related to the timing of certain sales to distributors. Revenue transactions recorded under the new guidance are substantially consistent with the treatment under prior guidance, and the impact of adoption was not material to the condensed consolidated financial statements as of and for the three and nine months ended June 30, 2019 and is not expected to be material on an ongoing basis. As part of the adoption, Valvoline modified certain control procedures and processes, none of which had a material effect on the Company’s internal control over financial reporting. Refer to Note 2 for additional information regarding Valvoline’s updated accounting policy for revenue from contracts with customers and adoption of this new guidance. • In August 2016, the FASB issued new accounting guidance regarding the classification of certain cash receipts and payments in the statement of cash flows. The Company adopted the accounting guidance on October 1, 2018 using a retrospective approach and made an accounting policy election to classify distributions received from equity method investments based on the nature of the activities of the investee that generated the distribution, which is consistent with the Company’s previous classification as cash flows from operating activities. The other cash flow classification matters addressed in this guidance were either not relevant or material to Valvoline’s current activities. The adoption of this guidance did not have a material impact on the Company’s Condensed Consolidated Statements of Cash Flows. • In November 2016, the FASB issued new accounting guidance, which requires amounts generally described as restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. Valvoline adopted this guidance retrospectively on October 1, 2018. The application of this guidance did not have a material impact on the Condensed Consolidated Statements of Cash Flows, nor did it require retrospective adjustment to the prior period financial statements as Valvoline did not have restricted cash or restricted cash equivalents in the prior periods presented. As of June 30, 2019, Valvoline had $11 million of deposits held with financial institutions, which is generally restricted for use in completing an acquisition, and is included in Prepaid expenses and other current assets in the Condensed Consolidated Balance Sheet. This restricted cash has been included within the end-of-period total amounts shown within the Condensed Consolidated Statement of Cash Flows for the nine months ended June 30, 2019. • In January 2017, the FASB issued new accounting guidance, which clarifies the definition of a business used across several areas of accounting, including the evaluation of whether a transaction should be accounted for as an acquisition (or disposal) of assets or as a business combination. The new guidance clarifies that a business must have at least one substantive process and also narrows the definition of outputs by more closely aligning with how outputs are described in the new revenue recognition standard. Valvoline adopted this guidance on October 1, 2018 with prospective application. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements. • In May 2017, the FASB issued accounting guidance that amended the scope of modification accounting for share-based payment awards. The new guidance requires modification accounting if the fair value, vesting condition, or the classification of the award is not the same immediately before and after a change to the terms and conditions of the award. Valvoline adopted this guidance prospectively on October 1, 2018, and the Company did have certain modifications of share-based awards in connection with the restructuring activities described in Note 8; however, the award modifications and the adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements. • In August 2018, the FASB issued new accounting guidance related to fees paid by a customer in a cloud computing arrangement, which aligns the accounting for implementation costs incurred in a cloud computing arrangement that is a service arrangement with the existing capitalization guidance for implementation costs incurred to develop or obtain internal-use software. Valvoline adopted this guidance prospectively on October 1, 2018 and capitalized approximately $3 million of cloud computing arrangement implementation costs during the nine months ended June 30, 2019. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements. Issued but not yet adopted In February 2016, the FASB issued new accounting guidance, which outlines a comprehensive lease accounting model that requires lessees to recognize a right-of-use asset and a corresponding lease liability on the balance sheet. The lease liability will be measured at the present value of future lease payments, and the right-of-use asset will be measured at the lease liability amount, adjusted for prepaid lease payments, lease incentives received and the lessee’s initial direct costs (e.g., commissions). Lease expense will be recognized similar to current accounting guidance with operating leases resulting in straight-line expense and finance leases resulting in accelerated expense recognition similar to the existing accounting for capital leases. Management will finalize its assessment and adopt the new guidance in the first fiscal quarter of 2020. This new guidance is expected to be adopted with election of the optional transition approach through recognition of the cumulative effect as an adjustment to retained deficit at adoption on October 1, 2019 without retrospective application to prior period financial statements. While the Company is finalizing its determinations, Valvoline expects to elect certain practical expedients permitted by the new guidance, including the package of practical expedients that allows for previous accounting conclusions regarding lease identification and classification to be carried forward for leases which commence prior to adoption, as well as the practical expedient to not separate lease and non-lease components and account for them as a single lease component. The Company does not currently expect to elect the hindsight or short-term lease practical expedients. The Company has made progress in its assessment and implementation efforts, including the identification and assessment of all forms of its leases, implementing an enterprise-wide lease management system, and evaluating additional changes to business processes and internal controls to ensure the reporting and disclosure requirements of the new guidance are met. At this time, the Company cannot estimate the specific quantitative impact of adopting this new guidance; however, adoption is expected to have a material impact on the Condensed Consolidated Balance Sheet as Valvoline has a significant number of operating leases, including many of its service center store locations, which will be recognized as right-of-use assets with associated lease liabilities upon adoption. The Company does not currently anticipate a material impact on the Condensed Consolidated Statements of Comprehensive Income, Cash Flows, or Stockholders’ Deficit.

Revenue Recognition

Revenue Recognition	9 Months Ended
	Jun. 30, 2019
Revenue from Contract with Customer [Abstract]
Revenue Recognition	REVENUE RECOGNITION As described in Note 1, Valvoline adopted new revenue recognition accounting guidance effective October 1, 2018, and accordingly, changed its accounting policy for revenue recognition prospectively from the date of adoption as described herein. Impacts on financial statements The adoption of the new revenue accounting guidance did not have a significant impact on the Company’s condensed consolidated financial statements. As a result of the Company’s adoption using the modified retrospective adoption approach, the Company recorded an adjustment to its Condensed Consolidated Balance Sheet as of October 1, 2018 related to the timing of certain sales to distributors. The following table reconciles the Condensed Consolidated Balance Sheet line items impacted by the cumulative effect of adoption of the new revenue recognition accounting guidance on October 1, 2018: (In millions) September 30, 2018 Adjustments Balances at October 1, 2018 Accounts receivable, net $ 409 $ (33) $ 376 Inventories, net $ 176 $ 14 $ 190 Deferred income taxes $ 138 $ 6 $ 144 Retained deficit $ 399 $ 13 $ 412 Most revenue transactions and activities recorded under the new revenue recognition accounting guidance are substantially consistent with the treatment under prior guidance. The following tables summarize the impact of the new revenue accounting guidance on Valvoline’s Condensed Consolidated Balance Sheet and Condensed Consolidated Statements of Comprehensive Income as of and for the three and nine months ended June 30, 2019: June 30, 2019 Impact of Changes to Condensed Consolidated Balance Sheet As reported Adjustments (a) Under prior guidance (In millions) Accounts receivable, net $ 423 $ 37 $ 460 Inventories, net $ 200 $ (15) $ 185 Deferred income taxes $ 113 $ (6) $ 107 Accrued expenses and other liabilities $ 242 $ (1) $ 241 Retained deficit $ 291 $ (15) $ 276 (a) Adjustments include the opening retained deficit adjustments as detailed in the table above. Three months ended June 30, 2019 Impact of Changes to Condensed Consolidated Statement of Comprehensive Income As reported Adjustments Under prior guidance (In millions) Sales $ 613 $ (10) $ 603 Cost of sales 406 (14) 392 Gross profit $ 207 $ 4 $ 211 Selling, general and administrative expenses $ 116 $ 3 $ 119 Equity and other income, net $ 11 $ 1 $ 12 Operating income $ 102 $ 2 $ 104 Income before income taxes $ 85 $ 2 $ 87 Income tax expense $ 20 $ 1 $ 21 Net income $ 65 $ 1 $ 66 Basic earnings per share $ 0.34 $ 0.01 $ 0.35 Diluted earnings per share $ 0.34 $ 0.01 $ 0.35 Nine months ended June 30, 2019 Impact of Changes to Condensed Consolidated Statement of Comprehensive Income As reported Adjustments Under prior guidance (In millions) Sales $ 1,761 $ (34) $ 1,727 Cost of sales 1,168 (42) 1,126 Gross profit $ 593 $ 8 $ 601 Selling, general and administrative expenses $ 334 $ 6 $ 340 Equity and other income, net $ 29 $ 1 $ 30 Operating income $ 285 $ 3 $ 288 Income before income taxes $ 237 $ 3 $ 240 Income tax expense $ 56 $ 1 $ 57 Net income $ 181 $ 2 $ 183 Basic earnings per share $ 0.96 $ 0.01 $ 0.97 Diluted earnings per share $ 0.96 $ 0.01 $ 0.97 Disaggregation of revenue The following summarizes sales by primary customer channel for the Company’s reportable segments: (In millions) Three months ended June 30, 2019 Nine months ended June 30, 2019 Quick Lubes Company-owned operations $ 136 $ 388 Non-company owned operations 75 212 Total Quick Lubes 211 600 Core North America Retail 143 399 Installer and other 117 336 Total Core North America 260 735 International 142 426 Consolidated sales $ 613 $ 1,761 Sales by reportable segment disaggregated by geographic market follows for the three and nine months ended June 30, 2019: (In millions) Quick Lubes Core North America International Totals Three months ended North America (a) $ 211 $ 260 $ — $ 471 Europe, Middle East and Africa ("EMEA") — — 43 43 Asia Pacific — — 72 72 Latin America (a) — — 27 27 Total $ 211 $ 260 $ 142 $ 613 Nine months ended North America (a) $ 600 $ 735 $ — $ 1,335 Europe, Middle East and Africa ("EMEA") — — 134 134 Asia Pacific — — 212 212 Latin America (a) — — 80 80 Total $ 600 $ 735 $ 426 $ 1,761 (a) Valvoline includes the United States and Canada in its North America region. Mexico is included within the Latin America region. The following disaggregates the Company’s sales by timing of revenue recognized: (In millions) Three months ended June 30, 2019 Nine months ended June 30, 2019 Sales at a point in time $ 602 $ 1,730 Franchised revenues transferred over time 11 31 Consolidated sales $ 613 $ 1,761 Nature of goods and services Valvoline generates all operating revenues from contracts with customers, primarily as a result of the sale and service delivery of engine and automotive maintenance products to customers. Valvoline derives its sales from its broad line of products and complementary services through three principal activities managed across its three reportable segments: (i) engine and automotive maintenance products, (ii) company-owned quick-lube operations, and (iii) franchised quick-lube operations. Valvoline’s sales are generally to retail, installer, industrial, distributor, franchise, and end consumers to facilitate vehicle and equipment service and maintenance. Approximately 98% of Valvoline’s net sales are products and services sold at a point in time through either ship-and-bill performance obligations or company-owned quick lube operations. The remaining 2% of Valvoline’s net sales generally relate to franchise fees. Revenue is recognized for the amount that reflects the consideration the Company is expected to be entitled to based on when control of the promised good or service is transferred to the customer. Revenue recognition is evaluated through the following five steps: (i) identification of the contract(s) with a customer; (ii) identification of the performance obligations in the contract(s); (iii) determination of the transaction price; (iv) allocation of the transaction price to the performance obligations in the contract(s); and (v) recognition of revenue when or as a performance obligation is satisfied. Below is a summary of the key considerations for Valvoline’s material revenue-generating activities: Engine and automotive maintenance products Engine and automotive maintenance products primarily include lubricants, antifreeze, chemicals, filters, and other complementary products for use across a wide array of vehicles and engines. The Company’s customers typically enter into a sales agreement which outlines a framework of terms and conditions that apply to all current and future purchase orders for the customer submitted under such sales agreement. In these situations, the Company’s contract with the customer is the sales agreement combined with the customer purchase order as specific products and quantities are not indicated until a purchase order is submitted. As the Company’s contract with the customer is typically for a single purchase order under the supply agreement to be delivered at a point in time, the duration of the contract is almost always one year or less. The Company’s products are distinct and separately identifiable on customer purchase orders, with each product sale representing a separate performance obligation that is generally delivered simultaneously. Valvoline is the principal to these contracts as the Company has control of the products prior to transfer to the customer. Accordingly, revenue is recognized on a gross basis. The Company determines the point in time at which control is transferred and the performance obligation is satisfied by considering when the customer has the ability to direct the use of and obtain substantially all of the remaining benefits of the product, which generally coincides with the transfer of title and risk of loss to the customer and is typically determined based on delivery terms within the underlying contract. Customer payment terms vary by region and customer and are generally 30 to 60 days after delivery. Valvoline does not provide extended payment terms greater than one year . Company-owned quick-lube operations Performance obligations related to company-owned quick-lube operations primarily include the sale of engine and automotive maintenance products and related services. These performance obligations are distinct and are delivered simultaneously at a point in time. Accordingly, revenue from company-owned quick-lube operations is recognized when payment is tendered at the point of sale, which coincides with the completion of product and service delivery and the transfer of control and benefits from the performance obligations to the customer. Franchised quick-lube operations The primary performance obligations related to franchised quick-lube operations include product sales as described above and the license of intellectual property, which provides access to the Valvoline brand and proprietary information to operate service center stores over the term of a franchise agreement. Other franchise performance obligations do not result in material revenue. Each performance obligation is distinct, and franchisees generally receive and consume the benefits provided by the Company’s performance over the course of the franchise agreement, which typically range from 10 to 15 years. Billings and payments occur monthly. In exchange for the license of Valvoline intellectual property, franchisees generally remit initial fees upon opening a service center store and royalties at a contractual rate of the applicable service center store sales over the term of the franchise agreement. The license provides access to the intellectual property over the term of the franchise agreement and is considered a right-to-access license of symbolic intellectual property as substantially all of its utility is derived from association with the Company’s past and ongoing activities. The license granted to operate each franchised service center store is the predominant item to which the royalties relate and represents a distinct performance obligation which is recognized over time as the underlying sales occur, as this is the most appropriate measure of progress toward complete satisfaction of the performance obligation. Variable consideration The Company only offers an assurance-type warranty with regard to the intended functionality of products sold, which therefore, does not represent a distinct performance obligation within the context of the contract. Product returns and refunds are generally not material and are not accepted unless the item is defective as manufactured. Estimated product returns are recorded as a reduction in reported revenues at the time of sale based upon historical product return experience and is adjusted for known trends to arrive at the amount of consideration to which Valvoline expects to receive. The nature of Valvoline’s contracts with customers often give rise to variable consideration consisting primarily of promotional rebates and customer pricing discounts based on achieving certain levels of sales activity that generally decrease the transaction price. The Company determines the transaction price as the amount of consideration it expects to be entitled to in exchange for fulfilling the performance obligations, including the effects of any variable consideration, or amounts payable to the customer when there is a basis to reasonably estimate the amount and it is probable there will not be a significant reversal. Variable consideration is recorded as a reduction of the transaction price at the time of sale and is primarily estimated utilizing the most likely amount method that is expected to be earned as the Company is able to estimate the anticipated discounts within a sufficiently narrow range of possible outcomes based on its extensive historical experience with certain customers, similar programs and management’s judgment with respect to estimating customer participation and performance levels. Variable consideration is reassessed at each reporting date and adjustments are made, when necessary. Allocation of transaction price In each contract with multiple performance obligations, Valvoline allocates the transaction price, including variable consideration, to each performance obligation on a relative standalone selling price basis, which is generally determined based on the directly observable data of the Company’s standalone sales of the performance obligations in similar circumstances to similar customers. In the absence of directly observable standalone prices, the Company may utilize prices charged by competitors selling similar products or use an expected cost-plus margin approach. The amount allocated to each performance obligation is recognized as revenue as control is transferred to the customer. Contract balances Valvoline invoices customers once or as performance obligations are satisfied, at which point payment becomes unconditional. As the majority of the Company’s performance obligations are satisfied at a point in time and customers typically do not make material payments in advance, nor does Valvoline have a right to consideration in advance of control transfer, the Company had no contract assets or contract liabilities recorded within its Condensed Consolidated Balance Sheet at adoption or as of June 30, 2019. The Company recognizes a receivable on its Condensed Consolidated Balance Sheet when the Company performs a service or transfers a product in advance of receiving consideration, and the Company’s right to consideration is unconditional and only the passage of time is required before payment of that consideration is due. Practical expedients and accounting policies Valvoline elected the following practical expedients and policy elections in accordance with the new revenue recognition accounting guidance adopted beginning in fiscal 2019: • Significant financing component – The promised amount of consideration has not been adjusted as the Company does not have significant financing arrangements with its customers. The Company expects that the period between when the Company transfers a promised good or service to the customer and when the customer pays for that good or service will be one year or less. • Incremental costs of obtaining a contract - The Company expenses incremental direct costs of obtaining a contract, primarily sales commissions, when incurred due to the short-term nature of individual contracts, which would result in amortization periods of one year or less. These costs are not material and are recorded in Selling, general and administrative expenses within the Condensed Consolidated Statements of Comprehensive Income. • Shipping and handling costs - Valvoline elected to account for shipping and handling activities that occur after the customer has obtained control as fulfillment activities (i.e., an expense) rather than as a performance obligation. Accordingly, amounts billed for shipping and handling are a component of the transaction price included in net sales, while costs incurred are included in cost of sales. • Sales and use-based taxes - Valvoline excludes from its revenue any amounts collected from customers for sales (and similar) taxes. These amounts are, however, reflected in accrued expenses until remitted to the appropriate governmental authority. • Disclosure of remaining performance obligations - The Company elected to apply the practical expedient to omit disclosures of remaining performance obligations for contracts which have an initial expected term of one year or less. In addition, the Company has elected to not disclose remaining performance obligations for its franchise agreements with variable consideration based on service center store sales.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Jun. 30, 2019
Fair Value Disclosures [Abstract]
Fair Value Measurements	FAIR VALUE MEASUREMENTS The following table sets forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis by level within the fair value hierarchy as of: (In millions) Fair Value Hierarchy June 30 September 30 Cash and cash equivalents Money market funds Level 1 $ 3 $ 5 Time deposits (a) Level 2 34 22 Prepaid expenses and other current assets Currency derivatives (b) Level 2 1 1 Time deposits (a) Level 2 1 — Other noncurrent assets Non-qualified trust funds Level 1 21 25 Total assets at fair value $ 60 $ 53 Accrued expenses and other liabilities Currency derivatives (b) Level 2 $ 2 $ 1 Total liabilities at fair value $ 2 $ 1 (a) Time deposits with original maturities of three months or less are classified within cash equivalents and those with original maturities of one year or less are classified within Prepaid expenses and other current assets. (b) The Company had outstanding contracts with notional values of $82 million and $74 million as of June 30, 2019 and September 30, 2018, respectively. There have been no changes in the nature of inputs or valuation approaches relative to the Company’s financial assets and liabilities that are accounted for at fair value on a recurring basis from those as of September 30, 2018. There were no material gains or losses recognized in earnings during the three and nine months ended June 30, 2019 or 2018 related to these assets and liabilities. Long-term debt The fair values of the Company’s outstanding fixed rate senior notes shown in the table below are based on recent trading values, which are considered Level 2 inputs within the fair value hierarchy. Long-term debt is included in the Condensed Consolidated Balance Sheets at carrying value, rather than fair value, and is therefore excluded from the fair value table above. Carrying values shown in the following table are net of unamortized discounts and issuance costs. June 30, 2019 September 30, 2018 (In millions) Fair value Carrying value Unamortized discount and Fair value Carrying value Unamortized 2024 Notes $ 388 $ 371 $ 4 $ 376 $ 370 $ 5 2025 Notes 401 395 5 376 395 5 Total $ 789 $ 766 $ 9 $ 752 $ 765 $ 10 Refer to Note 9 for more information on Valvoline’s other debt instruments that have variable interest rates, and accordingly, their carrying amounts approximate fair value.

Acquisitions and Divestitures

Acquisitions and Divestitures	9 Months Ended
	Jun. 30, 2019
Business Combinations [Abstract]
Acquisitions and Divestitures	ACQUISITIONS AND DIVESTITURES During the nine months ended June 30, 2019, the Company acquired 54 service center stores for $50 million. These acquisitions included 31 franchise service center stores acquired from Oil Changers Inc. on October 31, 2018, 18 service center stores acquired in single and multi-store transactions, and five former franchise service centers stores. During the nine months ended June 30, 2018, the Company acquired 63 service center stores, of which 60 were former franchise service center stores, for $71 million. The Company’s acquisitions are accounted for such that the assets acquired and liabilities assumed are recognized at their acquisition date fair values, with any excess of the consideration transferred over the estimated fair values of the identifiable net assets acquired recorded as goodwill. Goodwill is generally expected to be deductible for income tax purposes and is primarily attributed to the operational synergies and potential growth expected to result in economic benefits in the respective markets of the acquisitions. A summary follows of the aggregate cash consideration paid and the total assets acquired and liabilities assumed for the nine months ended June 30: (In millions) 2019 2018 Inventories $ — $ 1 Property, plant and equipment 3 2 Goodwill 34 42 Intangible assets (a) Reacquired franchise rights 5 26 Customer relationships 5 — Trademarks and trade names 1 — Other 2 — Net assets acquired $ 50 $ 71 (a) Intangible assets acquired during the nine months ended June 30, 2019 have a weighted average amortization period of 10 years. The fair values above are preliminary for up to one year from the date of acquisition as they are subject to measurement period adjustments as new information is obtained about facts and circumstances that existed as of the acquisition date. The Company does not currently expect any material changes to the preliminary purchase price allocations for acquisitions completed during the last twelve months. The incremental results of operations of the acquired stores, which were not material to the Company’s consolidated results, have been included in the condensed consolidated financial statements from the date of each acquisition, and accordingly, pro forma disclosure of financial information has not been presented.

Accounts Receivable

Accounts Receivable	9 Months Ended
	Jun. 30, 2019
Receivables [Abstract]
Accounts Receivable	ACCOUNTS RECEIVABLE The following summarizes Valvoline’s accounts receivable as of: (In millions) June 30 September 30 Trade $ 412 $ 390 Other 16 26 Accounts receivable, gross 428 416 Allowance for doubtful accounts (5) (7) Total accounts receivable, net $ 423 $ 409

Inventories

Inventories	9 Months Ended
	Jun. 30, 2019
Inventory Disclosure [Abstract]
Inventories	INVENTORIES Inventories are primarily carried at the lower of cost or net realizable value using the weighted average cost method. In addition, certain lubricants are valued at the lower of cost or market using the last-in, first-out (“LIFO”) method. The following summarizes Valvoline’s inventories as of: (In millions) June 30 September 30 Finished products $ 210 $ 189 Raw materials, supplies and work in process 34 30 Reserve for LIFO cost valuation (41) (40) Excess and obsolete inventory reserves (3) (3) Total inventories, net $ 200 $ 176

Goodwill and Other Intangibles

Goodwill and Other Intangibles	9 Months Ended
	Jun. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Other Intangibles	GOODWILL AND OTHER INTANGIBLES Goodwill The following table summarizes the changes in the carrying amount of goodwill by reportable segment and in total during the nine months ended June 30, 2019: (In millions) Quick Lubes Core North America International Total Balance at September 30, 2018 $ 252 $ 89 $ 40 $ 381 Acquisitions (a) 34 — — 34 Balance at June 30, 2019 $ 286 $ 89 $ 40 $ 415 (a) Refer to Note 4 for details regarding acquisitions completed during the nine months ended June 30, 2019. Other intangible assets Valvoline’s purchased intangible assets were specifically identified when acquired, have finite lives, and are reported in Goodwill and intangibles, net on the Condensed Consolidated Balance Sheets. The following summarizes the gross carrying amounts and accumulated amortization of the Company’s intangible assets as of: June 30, 2019 September 30, 2018 (In millions) Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated amortization Net carrying amount Definite-lived intangible assets Trademarks and trade names $ 30 $ (4) $ 26 $ 29 $ (2) $ 27 Reacquired franchise rights 37 (7) 30 32 (4) 28 Customer relationships 21 (4) 17 14 (3) 11 Other intangible assets 3 (1) 2 1 — 1 Total definite-lived intangible assets $ 91 $ (16) $ 75 $ 76 $ (9) $ 67

Restructuring Activities

Restructuring Activities	9 Months Ended
	Jun. 30, 2019
Restructuring and Related Activities [Abstract]
Restructuring Activities	RESTRUCTURING ACTIVITIES In the second fiscal quarter of 2019, Valvoline outlined a broad-based restructuring and cost-savings program that is expected to reduce costs, simplify processes and focus the organization’s structure and resources on key growth initiatives. Part of this program includes employee separation actions, which are expected to be generally completed by the end of 2019, with the associated termination benefits anticipated to be substantially paid by the end of 2020. During the three and nine months ended June 30, 2019, Valvoline recognized $4 million and $10 million of expense, respectively, for employee termination benefits, which includes severance and other benefits that will be paid to employees pursuant to the restructuring program. These expenses were recognized in Selling, general and administrative expenses within the Condensed Consolidated Statements of Comprehensive Income. The Company expects that it will incur additional employee termination expenses of approximately $3 million to $5 million, primarily during the fourth fiscal quarter of 2019. The results by segment, as disclosed in Note 14, do not include these and restructuring expenses, which is consistent with the manner by which management assesses the performance and evaluates the results of each segment. Accordingly, these expenses are included in Unallocated and other. The following table represents the expenses recognized related to employee termination benefits during the nine months ended June 30, 2019 and the estimated remaining liability, which is included in the Condensed Consolidated Balance Sheet primarily within Accrued expenses and other liabilities: (In millions) Employee Termination Benefits Balance at September 30, 2018 $ — Expenses recognized during the period 10 Payments (1) Balance at June 30, 2019 $ 9

Debt

Debt	9 Months Ended
	Jun. 30, 2019
Debt Disclosure [Abstract]
Debt	DEBT The following table summarizes Valvoline’s total debt as of: (In millions) June 30 September 30 2018 2025 Notes $ 400 $ 400 2024 Notes 375 375 Term Loans 575 270 Revolvers — 147 Trade Receivables Facility — 140 Other (a) (9) (10) Total debt $ 1,341 $ 1,322 Current portion of long-term debt 7 30 Long-term debt $ 1,334 $ 1,292 (a) Other includes debt issuance costs and discounts of $10 million and $11 million as of June 30, 2019 and September 30, 2018, respectively. In addition, Other includes $1 million of debt as of June 30, 2019 and September 30, 2018 which was primarily acquired through acquisitions. Senior Notes The Company’s outstanding fixed rate senior notes consist of 4.375% senior unsecured notes due 2025 with an aggregate principal amount of $400 million issued in August 2017 (the “2025 Notes”) and 5.500% senior unsecured notes due 2024 with an aggregate principal amount of $375 million issued in July 2016 (the “2024 Notes” and together with the 2025 Notes, the “Senior Notes”). Senior Credit Agreement In fiscal 2016, Valvoline entered into a Senior Credit Agreement (the “2016 Credit Agreement”), which provided an aggregate principal amount of $1,325 million in senior secured credit facilities, comprised of (i) a five five On April 12, 2019, Valvoline amended the 2016 Credit Agreement (the 2016 Credit Agreement, as amended, the “2019 Credit Agreement”) to extend the maturity to 2024, provide additional capacity under the revolving facility, and lower interest rates, among other modifications. This 2019 Credit Agreement provides for an aggregate principal amount of $1,050 million in senior secured credit facilities, comprised of (i) a five five Prior to the amendment in fiscal 2019, the Company made payments of $15 million to the 2016 Term Loan consistent with its payment schedule and had net borrowings of $39 million under the 2016 Revolver. The 2019 Term Loan proceeds of $575 million were used to pay the outstanding principal balance of the 2016 Term Loan of $255 million, the outstanding 2016 Revolver balance of $186 million, and $120 million on the trade receivables securitization facility described below, in addition to accrued and unpaid interest and fees, as well as expenses related to the amendment. Remaining proceeds, including the remaining capacity under the 2019 Revolver, are expected to fund general corporate purposes and working capital needs. As of June 30, 2019, the total borrowing capacity remaining under the 2019 Revolver was $466 million due to a reduction of $9 million for letters of credit outstanding. The outstanding principal balance of the 2019 Term Loan is required to be repaid in quarterly installments of approximately $7 million beginning June 30, 2020 and approximately $14 million beginning June 30, 2021, with the balance due at maturity on April 12, 2024, and prepayment due in the amount of the net cash proceeds from certain events. Amounts outstanding under the 2019 Credit Agreement may be prepaid at any time, and from time to time, in whole or part, without premium or penalty. At Valvoline’s option, amounts outstanding under the 2019 Credit Agreement bear interest at either LIBOR or an alternate base rate, in each case plus the applicable interest rate margin. The interest rate fluctuates between LIBOR plus 1.375% per annum and LIBOR plus 2.000% per annum (or between the alternate base rate plus 0.375% per annum and the alternate base rate plus 1.000% per annum), based upon Valvoline’s corporate credit ratings or its consolidated net leverage ratio, whichever yields the lowest rate. Valvoline’s existing and future subsidiaries (other than certain immaterial subsidiaries, joint ventures, special purpose financing subsidiaries, regulated subsidiaries, non-U.S. subsidiaries and certain other subsidiaries) guarantee the 2019 Credit Agreement, which is also secured by a first-priority security interest in substantially all the personal property assets, and certain real property assets, of Valvoline and the guarantors, including all or a portion of the equity interests of certain of Valvoline’s domestic subsidiaries and first-tier non-U.S. subsidiaries, and in certain cases, a portion of the equity interests of other non-U.S. subsidiaries. The 2019 Credit Agreement contains usual and customary representations, warranties, events of default, and 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 the maintenance of financial covenants as of the end of each fiscal quarter, including a maximum consolidated net leverage ratio of 4.5 and a minimum consolidated interest coverage ratio of 3.0. As of June 30, 2019, Valvoline was in compliance with all covenants under the 2019 Credit Agreement. Trade Receivables Facility As of June 30, 2019, there were no amounts outstanding under the $175 million trade receivables securitization facility (the “Trade Receivables Facility”), and as of September 30, 2018, there was $140 million outstanding. During the nine months ended June 30, 2019, Valvoline borrowed $82 million and made payments of $222 million, including the payment made with a portion of the proceeds from the 2019 Term Loan. Based on the availability of eligible receivables, the full capacity of the Trade Receivables Facility was available as of June 30, 2019. The financing subsidiary owned $274 million and $275 million of outstanding accounts receivable as of June 30, 2019 and September 30, 2018, respectively, and these amounts are included in Accounts receivable, net in the Company’s Condensed Consolidated Balance Sheets.

Income Taxes

Income Taxes	9 Months Ended
	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Income Taxes	INCOME TAXES Income tax provisions for interim quarterly periods are based on an estimated annual effective income tax rate calculated separately from the effect of significant, infrequent or unusual items related specifically to interim periods. The following summarizes income tax expense and the effective tax rate in each interim period: Three months ended June 30 Nine months ended June 30 (In millions) 2019 2018 2019 2018 Income tax expense $ 20 $ 33 $ 56 $ 154 Effective tax rate percentage 23.5 % 34.0 % 23.6 % 56.0 % The decreases in income tax expense and the effective tax rate from the prior year periods were principally driven by the prior year enactment of U.S. and Kentucky tax reform legislation, which resulted in the full benefit of lower corporate statutory income tax rates in fiscal 2019 and expense of approximately $6 million and $76 million recognized during the three and nine months ended June 30, 2018, respectively, primarily related to the remeasurement of net deferred tax assets at the lower corporate statutory income tax rates. Furthermore, a benefit of $5 million was recognized in the nine months ended June 30, 2019 related to the expected utilization of tax attributes as a result of the clarification of certain provisions of Kentucky tax reform legislation. The Company finalized its provisional estimates of the impacts of U.S. tax reform legislation during the three months ended December 31, 2018, which resulted in no significant adjustments.

Employee Benefit Plans

Employee Benefit Plans	9 Months Ended
	Jun. 30, 2019
Retirement Benefits [Abstract]
Employee Benefit Plans	EMPLOYEE BENEFIT PLANS The following table summarizes the components of pension and other postretirement benefit cost (income): Other postretirement benefits Pension benefits (In millions) 2019 2018 2019 2018 Three months ended June 30 Service cost $ — $ — $ — $ — Interest cost 21 19 — — Expected return on plan assets (20) (26) — — Amortization of prior service credit — — (3) (3) Net periodic benefit cost (income) $ 1 $ (7) $ (3) $ (3) Nine months ended June 30 Service cost $ 1 $ 1 $ — $ — Interest cost 61 56 1 1 Expected return on plan assets (60) (78) — — Amortization of prior service credit — — (9) (9) Net periodic benefit cost (income) $ 2 $ (21) $ (8) $ (8)

Litigation, Claims and Continge

Litigation, Claims and Contingencies	9 Months Ended
	Jun. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Litigation, Claims and Contingencies	LITIGATION, CLAIMS AND CONTINGENCIES From time to time, Valvoline is party to lawsuits, claims, and other legal proceedings that arise in the ordinary course of business. The Company establishes liabilities for the outcome of such matters where losses are determined to be probable and reasonably estimable. Where appropriate, the Company has recorded liabilities with respect to these matters, which were immaterial for the periods presented as reflected in the condensed consolidated financial statements herein. There are certain claims and legal proceedings pending where loss is not determined to be probable or reasonably estimable, and therefore, accruals have not been made. In addition, Valvoline discloses matters for which management believes a material loss is at least reasonably possible. In all instances, management has assessed each matter based on current information available and made a judgment concerning its potential outcome, giving due consideration to the amount and nature of the claim and the probability of success. The Company believes it has established adequate accruals for liabilities that are probable and reasonably estimable. Although the ultimate resolution of these matters cannot be predicted with certainty and there can be no assurances that the actual amounts required to satisfy liabilities from these matters will not exceed the amounts reflected in the condensed consolidated financial statements, based on information available at this time, it is the

Earnings Per Share

Earnings Per Share	9 Months Ended
	Jun. 30, 2019
Earnings Per Share [Abstract]
Earnings Per Share	EARNINGS PER SHARE The following table summarizes basic and diluted earnings per share for the following periods: Three months ended Nine months ended June 30 June 30 (In millions, except per share data) 2019 2018 2019 2018 Numerator Net income $ 65 $ 64 $ 181 $ 121 Denominator Weighted average common shares outstanding 189 195 189 199 Effect of potentially dilutive securities (a) — 1 — 1 Weighted average diluted shares outstanding 189 196 189 200 Earnings per share Basic $ 0.34 $ 0.33 $ 0.96 $ 0.61 Diluted $ 0.34 $ 0.33 $ 0.96 $ 0.61

Reportable Segment Information

Reportable Segment Information	9 Months Ended
	Jun. 30, 2019
Segment Reporting [Abstract]
Reportable Segment Information	REPORTABLE SEGMENT INFORMATION Valvoline manages and reports within the following three segments: • Quick Lubes - services the passenger car and light truck quick lube market through company-owned and independent franchised retail quick lube service center stores and independent Express Care stores that service vehicles with Valvoline products, as well as through investment in a joint venture in China to pilot expansion of retail quick lube service center stores outside of North America. • Core North America - sells engine and automotive maintenance products in the United States and Canada to retailers, installers, and heavy-duty customers to service vehicles and equipment. • International - sells engine and automotive maintenance products in approximately 140 countries outside of the United States and Canada for the maintenance of consumer and commercial vehicles and equipment. These segments represent components of the Company for which separate financial information is available that is utilized on a regular basis by the chief operating decision maker in assessing segment performance and in allocating the Company’s resources. Sales and operating income are the primary U.S. GAAP measures evaluated in assessing each reportable segment’s financial performance. Operating income by segment includes the allocation of shared corporate costs, which are allocated consistently based on each segment’s proportional contribution to various financial measures. Intersegment sales are not material, and assets are not allocated and included in the assessment of segment performance; consequently, these items are not disclosed by segment herein. To maintain operating focus on business performance, certain corporate and non-operational items, including restructuring and related expenses, as well as adjustments related to legacy businesses that no longer are attributed to Valvoline, are excluded from the segment operating results utilized by the chief operating decision maker in evaluating segment performance and are separately delineated within Unallocated and other to reconcile to total reported Operating income as shown in the table below. The following table presents sales and operating income for each reportable segment: Three months ended Nine months ended (In millions) June 30 June 30 2019 2018 2019 2018 Sales Quick Lubes $ 211 $ 167 $ 600 $ 479 Core North America 260 264 735 773 International 142 146 426 439 Consolidated sales $ 613 $ 577 $ 1,761 $ 1,691 Operating income Quick Lubes $ 48 $ 38 $ 130 $ 111 Core North America 38 41 109 130 International 20 20 61 63 Total operating segments 106 99 300 304 Unallocated and other (a) (4) 3 (15) (14) Consolidated operating income $ 102 $ 102 $ 285 $ 290 (a) Unallocated and other includes Legacy and separation-related expenses, net, and restructuring and related expenses.

Guarantor Financial Information

Guarantor Financial Information	9 Months Ended
	Jun. 30, 2019
Condensed Financial Information Disclosure [Abstract]
Guarantor Financial Information	GUARANTOR FINANCIAL INFORMATION The Senior Notes detailed in Note 9 are general unsecured senior obligations of Valvoline Inc. and are fully and unconditionally guaranteed on a senior unsecured basis, jointly and severally, by the combined “Guarantor Subsidiaries.” Other subsidiaries (the “Non-Guarantor Subsidiaries”) largely represent the international operations of the Company, which do not guarantee the Senior Notes. The following tables present, on a consolidating basis, the condensed statements of comprehensive income, condensed balance sheets, and condensed statements of cash flows for the parent issuer of these Senior Notes, the Guarantor Subsidiaries on a combined basis, the Non-Guarantor Subsidiaries on a combined basis, and the eliminations necessary to arrive at the Company’s consolidated results. Condensed Consolidating Statements of Comprehensive Income For the three months ended June 30, 2019 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Sales $ — $ 491 $ 140 $ (18) $ 613 Cost of sales — 324 100 (18) 406 Gross profit — 167 40 — 207 Selling, general and administrative expenses 3 87 26 — 116 Net legacy and separation-related expenses — — — — — Equity and other (income) expenses, net — (16) 5 — (11) Operating (loss) income (3) 96 9 — 102 Net pension and other postretirement plan income — (2) — — (2) Net interest and other financing expenses 17 2 — — 19 (Loss) income before income taxes (20) 96 9 — 85 Income tax (benefit) expense (5) 24 1 — 20 Equity in net income of subsidiaries (80) (8) — 88 — Net income $ 65 $ 80 $ 8 $ (88) $ 65 Total comprehensive income $ 63 $ 78 $ 9 $ (87) $ 63 Condensed Consolidating Statements of Comprehensive Income For the three months ended June 30, 2018 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Sales $ — $ 456 $ 137 $ (16) $ 577 Cost of sales — 294 98 (16) 376 Gross profit — 162 39 — 201 Selling, general and administrative expenses 3 81 26 — 110 Net legacy and separation-related income (3) — — — (3) Equity and other (income) expenses, net — (11) 3 — (8) Operating income — 92 10 — 102 Net pension and other postretirement plan income — (10) — — (10) Net interest and other financing expenses 14 1 — — 15 (Loss) income before income taxes (14) 101 10 — 97 Income tax (benefit) expense (1) 30 4 — 33 Equity in net income of subsidiaries (77) (6) — 83 — Net income $ 64 $ 77 $ 6 $ (83) $ 64 Total comprehensive income $ 48 $ 61 $ (5) $ (56) $ 48 Condensed Consolidating Statements of Comprehensive Income For the nine months ended June 30, 2019 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Sales $ — $ 1,396 $ 415 $ (50) $ 1,761 Cost of sales — 917 301 (50) 1,168 Gross profit — 479 114 — 593 Selling, general and administrative expenses 8 258 68 — 334 Net legacy and separation-related expenses 3 — — — 3 Equity and other (income) expenses, net — (43) 14 — (29) Operating (loss) income (11) 264 32 — 285 Net pension and other postretirement plan income — (7) — — (7) Net interest and other financing expenses 47 5 3 — 55 (Loss) income before income taxes (58) 266 29 — 237 Income tax (benefit) expense (16) 65 7 — 56 Equity in net income of subsidiaries (223) (22) — 245 — Net income $ 181 $ 223 $ 22 $ (245) $ 181 Total comprehensive income $ 173 $ 215 $ 20 $ (235) $ 173 Condensed Consolidating Statements of Comprehensive Income For the nine months ended June 30, 2018 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Sales $ — $ 1,319 $ 413 $ (41) $ 1,691 Cost of sales — 832 297 (41) 1,088 Gross profit — 487 116 — 603 Selling, general and administrative expenses 10 247 71 — 328 Net legacy and separation-related expenses 4 10 — — 14 Equity and other (income) expenses, net — (37) 8 — (29) Operating (loss) income (14) 267 37 — 290 Net pension and other postretirement plan income — (30) — — (30) Net interest and other financing expenses 39 4 2 — 45 (Loss) income before income taxes (53) 293 35 — 275 Income tax expense 16 128 10 — 154 Equity in net income of subsidiaries (190) (25) — 215 — Net income $ 121 $ 190 $ 25 $ (215) $ 121 Total comprehensive income $ 105 $ 174 $ 17 $ (191) $ 105 Condensed Consolidating Balance Sheets As of June 30, 2019 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets Cash and cash equivalents $ — $ 29 $ 97 $ — $ 126 Accounts receivable, net — 203 359 (139) 423 Inventories, net — 117 83 — 200 Prepaid expenses and other current assets 1 29 22 — 52 Total current assets 1 378 561 (139) 801 Noncurrent assets Property, plant and equipment, net — 408 47 — 455 Goodwill and intangibles, net — 418 72 — 490 Equity method investments — 35 — — 35 Investment in subsidiaries 1,158 553 — (1,711) — Deferred income taxes 79 19 15 — 113 Other noncurrent assets 3 95 8 — 106 Total noncurrent assets $ 1,240 1,528 142 (1,711) 1,199 Total assets $ 1,241 $ 1,906 $ 703 $ (1,850) $ 2,000 Liabilities and Stockholders’ Deficit Current liabilities Current portion of long-term debt $ 7 $ — $ — $ — $ 7 Trade and other payables 97 107 98 (139) 163 Accrued expenses and other liabilities 20 188 34 — 242 Total current liabilities 124 295 132 (139) 412 Noncurrent liabilities Long-term debt 1,333 1 — — 1,334 Employee benefit obligations — 305 17 — 322 Other noncurrent liabilities 36 147 1 — 184 Total noncurrent liabilities 1,369 453 18 — 1,840 Commitments and contingencies Stockholders’ (deficit) equity (252) 1,158 553 (1,711) (252) Total liabilities and stockholders’ deficit / equity $ 1,241 $ 1,906 $ 703 $ (1,850) $ 2,000 Condensed Consolidating Balance Sheets As of September 30, 2018 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets Cash and cash equivalents $ — $ 20 $ 76 $ — $ 96 Accounts receivable, net — 48 480 (119) 409 Inventories, net — 95 81 — 176 Prepaid expenses and other current assets 1 38 5 — 44 Total current assets 1 201 642 (119) 725 Noncurrent assets Property, plant and equipment, net — 384 36 — 420 Goodwill and intangibles, net — 396 52 — 448 Equity method investments — 31 — — 31 Investment in subsidiaries 801 509 — (1,310) — Deferred income taxes 62 63 13 — 138 Other noncurrent assets 2 85 5 — 92 Total noncurrent assets 865 1,468 106 (1,310) 1,129 Total assets $ 866 $ 1,669 $ 748 $ (1,429) $ 1,854 Liabilities and Stockholders’ Deficit Current liabilities Current portion of long-term debt $ 30 $ — $ — $ — $ 30 Trade and other payables 3 241 53 (119) 178 Accrued expenses and other liabilities 7 168 28 — 203 Total current liabilities 40 409 81 (119) 411 Noncurrent liabilities Long-term debt 1,151 1 140 — 1,292 Employee benefit obligations — 317 16 — 333 Other noncurrent liabilities 33 141 2 — 176 Total noncurrent liabilities 1,184 459 158 — 1,801 Commitments and contingencies Stockholders’ (deficit) equity (358) 801 509 (1,310) (358) Total liabilities and stockholders’ deficit / equity $ 866 $ 1,669 $ 748 $ (1,429) $ 1,854 Condensed Consolidating Statements of Cash Flows For the nine months ended June 30, 2019 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows (used in) provided by operating activities $ (94) $ 98 $ 210 $ — $ 214 Cash flows from investing activities Additions to property, plant and equipment — (60) (13) — (73) Acquisitions, net of cash acquired — (28) (22) — (50) Other investing activities, net — 1 (2) — (1) Cash flows used in investing activities — (87) (37) — (124) Cash flows from financing activities Proceeds from borrowings, net of issuance costs 661 — 82 — 743 Repayments on borrowings (505) — (222) — (727) Payments for purchase of additional ownership in subsidiary — — (1) — (1) Cash dividends paid (60) — — — (60) Other financing activities (2) (2) — — (4) Cash flows provided by (used in) financing activities 94 (2) (141) — (49) Effect of currency exchange rate changes on cash, cash equivalents, and restricted cash — — — — — Increase in cash, cash equivalents, and restricted cash — 9 32 — 41 Cash, cash equivalents, and restricted cash - beginning of year — 20 76 — 96 Cash, cash equivalents, and restricted cash - end of period $ — $ 29 $ 108 $ — $ 137 Condensed Consolidating Statements of Cash Flows For the nine months ended June 30, 2018 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows (used in) provided by operating activities $ (28) $ 287 $ (78) $ — $ 181 Cash flows from investing activities Additions to property, plant and equipment — (48) (3) — (51) Acquisitions, net of cash acquired — (71) — — (71) Other investing activities, net — 5 — — 5 Return of advance from subsidiary 263 — — (263) — Cash flows provided by (used in) investing activities 263 (114) (3) (263) (117) Cash flows from financing activities Proceeds from borrowings, net of issuance costs 70 — 100 — 170 Repayments on borrowings (38) — (1) — (39) Repurchases of common stock (220) — — — (220) Payments for purchase of additional ownership in subsidiary — — (15) — (15) Cash dividends paid (45) — — — (45) Other financing activities (2) (2) (2) — (6) Other intercompany activity, net — (263) — 263 — Total cash (used in) provided by financing activities (235) (265) 82 263 (155) Effect of currency exchange rate changes on cash, cash equivalents, and restricted cash — — (3) — (3) Decrease in cash, cash equivalents and restricted cash — (92) (2) — (94) Cash, cash equivalents, and restricted cash - beginning of year — 99 102 — 201 Cash, cash equivalents, and restricted cash - end of period $ — $ 7 $ 100 $ — $ 107

Subsequent Events

Subsequent Events	9 Months Ended
	Jun. 30, 2019
Subsequent Events [Abstract]
Subsequent Events	SUBSEQUENT EVENTS Acquisition activity From July 1 through July 31, 2019, Valvoline completed four acquisitions for an aggregate purchase price of approximately $18 million. These acquisitions included three single-store acquisitions of service center stores within the Quick Lubes reportable segment and an Eastern European lubricant production company, including its manufacturing facility, within the International reportable segment. These acquisitions provide an opportunity to further grow Valvoline's Quick Lubes system of more than 500 company-owned service center stores and expand Valvoline’s presence in Eastern Europe, including additional investment in the Company’s regional European supply chain capabilities. Dividend declared On July 18, 2019, the Board of Directors of Valvoline declared a quarterly cash dividend of $0.106 per share of Valvoline common stock. The dividend is payable on September 16, 2019 to shareholders of record on August 30, 2019.

Basis of Presentation and Sig_2

Basis of Presentation and Significant Accounting Policies (Policies)	9 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Basis of Presentation	The accompanying unaudited condensed consolidated financial statements have been prepared by Valvoline Inc. (“Valvoline” or the “Company”) in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and Securities and Exchange Commission (“SEC”) 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, 2018. 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, the assumptions underlying the condensed consolidated financial statements for these interim periods are reasonable, and all adjustments considered necessary for a fair presentation have been made and are of a normal recurring nature unless otherwise disclosed herein. The results for interim periods are not necessarily indicative of those to be expected for the entire year. Certain prior period amounts have been reclassified to conform to the current presentation.
Recent accounting pronouncements	The following standards relevant to Valvoline were either issued or adopted in the current year, or are expected to have a meaningful impact on Valvoline in future periods. Recently adopted In the first fiscal quarter of 2019, Valvoline adopted the following: • In May 2014, the Financial Accounting Standards Board (“FASB”) issued accounting guidance, which established a single comprehensive model for entities to use in accounting for revenue from contracts with customers and superseded most industry-specific revenue recognition guidance. This new guidance introduced a five-step model for revenue recognition focused on the transfer of control, as opposed to the transfer of risk and rewards under prior guidance. Valvoline adopted this new revenue recognition guidance on October 1, 2018 using the modified retrospective method applied to those contracts that were not completed at the date of adoption. Under this method, the new revenue recognition guidance has been applied prospectively from the date of adoption, while prior period financial statements continue to be reported in accordance with the previous guidance. The cumulative effect of the changes at adoption was recognized through an increase to opening retained deficit of $13 million, net of tax, related to the timing of certain sales to distributors. Revenue transactions recorded under the new guidance are substantially consistent with the treatment under prior guidance, and the impact of adoption was not material to the condensed consolidated financial statements as of and for the three and nine months ended June 30, 2019 and is not expected to be material on an ongoing basis. As part of the adoption, Valvoline modified certain control procedures and processes, none of which had a material effect on the Company’s internal control over financial reporting. Refer to Note 2 for additional information regarding Valvoline’s updated accounting policy for revenue from contracts with customers and adoption of this new guidance. • In August 2016, the FASB issued new accounting guidance regarding the classification of certain cash receipts and payments in the statement of cash flows. The Company adopted the accounting guidance on October 1, 2018 using a retrospective approach and made an accounting policy election to classify distributions received from equity method investments based on the nature of the activities of the investee that generated the distribution, which is consistent with the Company’s previous classification as cash flows from operating activities. The other cash flow classification matters addressed in this guidance were either not relevant or material to Valvoline’s current activities. The adoption of this guidance did not have a material impact on the Company’s Condensed Consolidated Statements of Cash Flows. • In November 2016, the FASB issued new accounting guidance, which requires amounts generally described as restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. Valvoline adopted this guidance retrospectively on October 1, 2018. The application of this guidance did not have a material impact on the Condensed Consolidated Statements of Cash Flows, nor did it require retrospective adjustment to the prior period financial statements as Valvoline did not have restricted cash or restricted cash equivalents in the prior periods presented. As of June 30, 2019, Valvoline had $11 million of deposits held with financial institutions, which is generally restricted for use in completing an acquisition, and is included in Prepaid expenses and other current assets in the Condensed Consolidated Balance Sheet. This restricted cash has been included within the end-of-period total amounts shown within the Condensed Consolidated Statement of Cash Flows for the nine months ended June 30, 2019. • In January 2017, the FASB issued new accounting guidance, which clarifies the definition of a business used across several areas of accounting, including the evaluation of whether a transaction should be accounted for as an acquisition (or disposal) of assets or as a business combination. The new guidance clarifies that a business must have at least one substantive process and also narrows the definition of outputs by more closely aligning with how outputs are described in the new revenue recognition standard. Valvoline adopted this guidance on October 1, 2018 with prospective application. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements. • In May 2017, the FASB issued accounting guidance that amended the scope of modification accounting for share-based payment awards. The new guidance requires modification accounting if the fair value, vesting condition, or the classification of the award is not the same immediately before and after a change to the terms and conditions of the award. Valvoline adopted this guidance prospectively on October 1, 2018, and the Company did have certain modifications of share-based awards in connection with the restructuring activities described in Note 8; however, the award modifications and the adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements. • In August 2018, the FASB issued new accounting guidance related to fees paid by a customer in a cloud computing arrangement, which aligns the accounting for implementation costs incurred in a cloud computing arrangement that is a service arrangement with the existing capitalization guidance for implementation costs incurred to develop or obtain internal-use software. Valvoline adopted this guidance prospectively on October 1, 2018 and capitalized approximately $3 million of cloud computing arrangement implementation costs during the nine months ended June 30, 2019. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements. Issued but not yet adopted In February 2016, the FASB issued new accounting guidance, which outlines a comprehensive lease accounting model that requires lessees to recognize a right-of-use asset and a corresponding lease liability on the balance sheet. The lease liability will be measured at the present value of future lease payments, and the right-of-use asset will be measured at the lease liability amount, adjusted for prepaid lease payments, lease incentives received and the lessee’s initial direct costs (e.g., commissions). Lease expense will be recognized similar to current accounting guidance with operating leases resulting in straight-line expense and finance leases resulting in accelerated expense recognition similar to the existing accounting for capital leases. Management will finalize its assessment and adopt the new guidance in the first fiscal quarter of 2020. This new guidance is expected to be adopted with election of the optional transition approach through recognition of the cumulative effect as an adjustment to retained deficit at adoption on October 1, 2019 without retrospective application to prior period financial statements. While the Company is finalizing its determinations, Valvoline expects to elect certain practical expedients permitted by the new guidance, including the package of practical expedients that allows for previous accounting conclusions regarding lease identification and classification to be carried forward for leases which commence prior to adoption, as well as the practical expedient to not separate lease and non-lease components and account for them as a single lease component. The Company does not currently expect to elect the hindsight or short-term lease practical expedients. The Company has made progress in its assessment and implementation efforts, including the identification and assessment of all forms of its leases, implementing an enterprise-wide lease management system, and evaluating additional changes to business processes and internal controls to ensure the reporting and disclosure requirements of the new guidance are met. At this time, the Company cannot estimate the specific quantitative impact of adopting this new guidance; however, adoption is expected to have a material impact on the Condensed Consolidated Balance Sheet as Valvoline has a significant number of operating leases, including many of its service center store locations, which will be recognized as right-of-use assets with associated lease liabilities upon adoption. The Company does not currently anticipate a material impact on the Condensed Consolidated Statements of Comprehensive Income, Cash Flows, or Stockholders’ Deficit.
Revenue Recognition	Revenue is recognized for the amount that reflects the consideration the Company is expected to be entitled to based on when control of the promised good or service is transferred to the customer. Revenue recognition is evaluated through the following five steps: (i) identification of the contract(s) with a customer; (ii) identification of the performance obligations in the contract(s); (iii) determination of the transaction price; (iv) allocation of the transaction price to the performance obligations in the contract(s); and (v) recognition of revenue when or as a performance obligation is satisfied. Below is a summary of the key considerations for Valvoline’s material revenue-generating activities: Engine and automotive maintenance products Engine and automotive maintenance products primarily include lubricants, antifreeze, chemicals, filters, and other complementary products for use across a wide array of vehicles and engines. The Company’s customers typically enter into a sales agreement which outlines a framework of terms and conditions that apply to all current and future purchase orders for the customer submitted under such sales agreement. In these situations, the Company’s contract with the customer is the sales agreement combined with the customer purchase order as specific products and quantities are not indicated until a purchase order is submitted. As the Company’s contract with the customer is typically for a single purchase order under the supply agreement to be delivered at a point in time, the duration of the contract is almost always one year or less. The Company’s products are distinct and separately identifiable on customer purchase orders, with each product sale representing a separate performance obligation that is generally delivered simultaneously. Valvoline is the principal to these contracts as the Company has control of the products prior to transfer to the customer. Accordingly, revenue is recognized on a gross basis. The Company determines the point in time at which control is transferred and the performance obligation is satisfied by considering when the customer has the ability to direct the use of and obtain substantially all of the remaining benefits of the product, which generally coincides with the transfer of title and risk of loss to the customer and is typically determined based on delivery terms within the underlying contract. Customer payment terms vary by region and customer and are generally 30 to 60 days after delivery. Valvoline does not provide extended payment terms greater than one year . Company-owned quick-lube operations Performance obligations related to company-owned quick-lube operations primarily include the sale of engine and automotive maintenance products and related services. These performance obligations are distinct and are delivered simultaneously at a point in time. Accordingly, revenue from company-owned quick-lube operations is recognized when payment is tendered at the point of sale, which coincides with the completion of product and service delivery and the transfer of control and benefits from the performance obligations to the customer. Franchised quick-lube operations The primary performance obligations related to franchised quick-lube operations include product sales as described above and the license of intellectual property, which provides access to the Valvoline brand and proprietary information to operate service center stores over the term of a franchise agreement. Other franchise performance obligations do not result in material revenue. Each performance obligation is distinct, and franchisees generally receive and consume the benefits provided by the Company’s performance over the course of the franchise agreement, which typically range from 10 to 15 years. Billings and payments occur monthly. In exchange for the license of Valvoline intellectual property, franchisees generally remit initial fees upon opening a service center store and royalties at a contractual rate of the applicable service center store sales over the term of the franchise agreement. The license provides access to the intellectual property over the term of the franchise agreement and is considered a right-to-access license of symbolic intellectual property as substantially all of its utility is derived from association with the Company’s past and ongoing activities. The license granted to operate each franchised service center store is the predominant item to which the royalties relate and represents a distinct performance obligation which is recognized over time as the underlying sales occur, as this is the most appropriate measure of progress toward complete satisfaction of the performance obligation. Variable consideration The Company only offers an assurance-type warranty with regard to the intended functionality of products sold, which therefore, does not represent a distinct performance obligation within the context of the contract. Product returns and refunds are generally not material and are not accepted unless the item is defective as manufactured. Estimated product returns are recorded as a reduction in reported revenues at the time of sale based upon historical product return experience and is adjusted for known trends to arrive at the amount of consideration to which Valvoline expects to receive. The nature of Valvoline’s contracts with customers often give rise to variable consideration consisting primarily of promotional rebates and customer pricing discounts based on achieving certain levels of sales activity that generally decrease the transaction price. The Company determines the transaction price as the amount of consideration it expects to be entitled to in exchange for fulfilling the performance obligations, including the effects of any variable consideration, or amounts payable to the customer when there is a basis to reasonably estimate the amount and it is probable there will not be a significant reversal. Variable consideration is recorded as a reduction of the transaction price at the time of sale and is primarily estimated utilizing the most likely amount method that is expected to be earned as the Company is able to estimate the anticipated discounts within a sufficiently narrow range of possible outcomes based on its extensive historical experience with certain customers, similar programs and management’s judgment with respect to estimating customer participation and performance levels. Variable consideration is reassessed at each reporting date and adjustments are made, when necessary. Allocation of transaction price In each contract with multiple performance obligations, Valvoline allocates the transaction price, including variable consideration, to each performance obligation on a relative standalone selling price basis, which is generally determined based on the directly observable data of the Company’s standalone sales of the performance obligations in similar circumstances to similar customers. In the absence of directly observable standalone prices, the Company may utilize prices charged by competitors selling similar products or use an expected cost-plus margin approach. The amount allocated to each performance obligation is recognized as revenue as control is transferred to the customer. Contract balances Valvoline invoices customers once or as performance obligations are satisfied, at which point payment becomes unconditional. As the majority of the Company’s performance obligations are satisfied at a point in time and customers typically do not make material payments in advance, nor does Valvoline have a right to consideration in advance of control transfer, the Company had no contract assets or contract liabilities recorded within its Condensed Consolidated Balance Sheet at adoption or as of June 30, 2019. The Company recognizes a receivable on its Condensed Consolidated Balance Sheet when the Company performs a service or transfers a product in advance of receiving consideration, and the Company’s right to consideration is unconditional and only the passage of time is required before payment of that consideration is due. Practical expedients and accounting policies Valvoline elected the following practical expedients and policy elections in accordance with the new revenue recognition accounting guidance adopted beginning in fiscal 2019: • Significant financing component – The promised amount of consideration has not been adjusted as the Company does not have significant financing arrangements with its customers. The Company expects that the period between when the Company transfers a promised good or service to the customer and when the customer pays for that good or service will be one year or less. • Incremental costs of obtaining a contract - The Company expenses incremental direct costs of obtaining a contract, primarily sales commissions, when incurred due to the short-term nature of individual contracts, which would result in amortization periods of one year or less. These costs are not material and are recorded in Selling, general and administrative expenses within the Condensed Consolidated Statements of Comprehensive Income. • Shipping and handling costs - Valvoline elected to account for shipping and handling activities that occur after the customer has obtained control as fulfillment activities (i.e., an expense) rather than as a performance obligation. Accordingly, amounts billed for shipping and handling are a component of the transaction price included in net sales, while costs incurred are included in cost of sales. • Sales and use-based taxes - Valvoline excludes from its revenue any amounts collected from customers for sales (and similar) taxes. These amounts are, however, reflected in accrued expenses until remitted to the appropriate governmental authority. • Disclosure of remaining performance obligations - The Company elected to apply the practical expedient to omit disclosures of remaining performance obligations for contracts which have an initial expected term of one year or less. In addition, the Company has elected to not disclose remaining performance obligations for its franchise agreements with variable consideration based on service center store sales.
Inventories	Inventories are primarily carried at the lower of cost or net realizable value using the weighted average cost method. In addition, certain lubricants are valued at the lower of cost or market using the last-in, first-out (“LIFO”) method.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	9 Months Ended
	Jun. 30, 2019
Revenue from Contract with Customer [Abstract]
Schedule of Cumulative Effect and Impact of New Accounting Pronouncements	The following table reconciles the Condensed Consolidated Balance Sheet line items impacted by the cumulative effect of adoption of the new revenue recognition accounting guidance on October 1, 2018: (In millions) September 30, 2018 Adjustments Balances at October 1, 2018 Accounts receivable, net $ 409 $ (33) $ 376 Inventories, net $ 176 $ 14 $ 190 Deferred income taxes $ 138 $ 6 $ 144 Retained deficit $ 399 $ 13 $ 412 Most revenue transactions and activities recorded under the new revenue recognition accounting guidance are substantially consistent with the treatment under prior guidance. The following tables summarize the impact of the new revenue accounting guidance on Valvoline’s Condensed Consolidated Balance Sheet and Condensed Consolidated Statements of Comprehensive Income as of and for the three and nine months ended June 30, 2019: June 30, 2019 Impact of Changes to Condensed Consolidated Balance Sheet As reported Adjustments (a) Under prior guidance (In millions) Accounts receivable, net $ 423 $ 37 $ 460 Inventories, net $ 200 $ (15) $ 185 Deferred income taxes $ 113 $ (6) $ 107 Accrued expenses and other liabilities $ 242 $ (1) $ 241 Retained deficit $ 291 $ (15) $ 276 (a) Adjustments include the opening retained deficit adjustments as detailed in the table above. Three months ended June 30, 2019 Impact of Changes to Condensed Consolidated Statement of Comprehensive Income As reported Adjustments Under prior guidance (In millions) Sales $ 613 $ (10) $ 603 Cost of sales 406 (14) 392 Gross profit $ 207 $ 4 $ 211 Selling, general and administrative expenses $ 116 $ 3 $ 119 Equity and other income, net $ 11 $ 1 $ 12 Operating income $ 102 $ 2 $ 104 Income before income taxes $ 85 $ 2 $ 87 Income tax expense $ 20 $ 1 $ 21 Net income $ 65 $ 1 $ 66 Basic earnings per share $ 0.34 $ 0.01 $ 0.35 Diluted earnings per share $ 0.34 $ 0.01 $ 0.35 Nine months ended June 30, 2019 Impact of Changes to Condensed Consolidated Statement of Comprehensive Income As reported Adjustments Under prior guidance (In millions) Sales $ 1,761 $ (34) $ 1,727 Cost of sales 1,168 (42) 1,126 Gross profit $ 593 $ 8 $ 601 Selling, general and administrative expenses $ 334 $ 6 $ 340 Equity and other income, net $ 29 $ 1 $ 30 Operating income $ 285 $ 3 $ 288 Income before income taxes $ 237 $ 3 $ 240 Income tax expense $ 56 $ 1 $ 57 Net income $ 181 $ 2 $ 183 Basic earnings per share $ 0.96 $ 0.01 $ 0.97 Diluted earnings per share $ 0.96 $ 0.01 $ 0.97
Schedule of Disaggregated Revenues	The following summarizes sales by primary customer channel for the Company’s reportable segments: (In millions) Three months ended June 30, 2019 Nine months ended June 30, 2019 Quick Lubes Company-owned operations $ 136 $ 388 Non-company owned operations 75 212 Total Quick Lubes 211 600 Core North America Retail 143 399 Installer and other 117 336 Total Core North America 260 735 International 142 426 Consolidated sales $ 613 $ 1,761 Sales by reportable segment disaggregated by geographic market follows for the three and nine months ended June 30, 2019: (In millions) Quick Lubes Core North America International Totals Three months ended North America (a) $ 211 $ 260 $ — $ 471 Europe, Middle East and Africa ("EMEA") — — 43 43 Asia Pacific — — 72 72 Latin America (a) — — 27 27 Total $ 211 $ 260 $ 142 $ 613 Nine months ended North America (a) $ 600 $ 735 $ — $ 1,335 Europe, Middle East and Africa ("EMEA") — — 134 134 Asia Pacific — — 212 212 Latin America (a) — — 80 80 Total $ 600 $ 735 $ 426 $ 1,761
Disaggregation of Sales by Timing of Revenue Recognized	The following disaggregates the Company’s sales by timing of revenue recognized: (In millions) Three months ended June 30, 2019 Nine months ended June 30, 2019 Sales at a point in time $ 602 $ 1,730 Franchised revenues transferred over time 11 31 Consolidated sales $ 613 $ 1,761

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Jun. 30, 2019
Fair Value Disclosures [Abstract]
Schedule of Assets and Liabilities at Fair Value	The following table sets forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis by level within the fair value hierarchy as of: (In millions) Fair Value Hierarchy June 30 September 30 Cash and cash equivalents Money market funds Level 1 $ 3 $ 5 Time deposits (a) Level 2 34 22 Prepaid expenses and other current assets Currency derivatives (b) Level 2 1 1 Time deposits (a) Level 2 1 — Other noncurrent assets Non-qualified trust funds Level 1 21 25 Total assets at fair value $ 60 $ 53 Accrued expenses and other liabilities Currency derivatives (b) Level 2 $ 2 $ 1 Total liabilities at fair value $ 2 $ 1 (a) Time deposits with original maturities of three months or less are classified within cash equivalents and those with original maturities of one year or less are classified within Prepaid expenses and other current assets.
Summary of Fair Value of Debt	Carrying values shown in the following table are net of unamortized discounts and issuance costs. June 30, 2019 September 30, 2018 (In millions) Fair value Carrying value Unamortized discount and Fair value Carrying value Unamortized 2024 Notes $ 388 $ 371 $ 4 $ 376 $ 370 $ 5 2025 Notes 401 395 5 376 395 5 Total $ 789 $ 766 $ 9 $ 752 $ 765 $ 10

Acquisitions and Divestitures (

Acquisitions and Divestitures (Tables)	9 Months Ended
	Jun. 30, 2019
Business Combinations [Abstract]
Summary of Consideration Paid and Assets and Liabilities Acquired	A summary follows of the aggregate cash consideration paid and the total assets acquired and liabilities assumed for the nine months ended June 30: (In millions) 2019 2018 Inventories $ — $ 1 Property, plant and equipment 3 2 Goodwill 34 42 Intangible assets (a) Reacquired franchise rights 5 26 Customer relationships 5 — Trademarks and trade names 1 — Other 2 — Net assets acquired $ 50 $ 71 (a) Intangible assets acquired during the nine months ended June 30, 2019 have a weighted average amortization period of 10 years.

Accounts Receivable (Tables)

Accounts Receivable (Tables)	9 Months Ended
	Jun. 30, 2019
Receivables [Abstract]
Summary of Accounts Receivable	The following summarizes Valvoline’s accounts receivable as of: (In millions) June 30 September 30 Trade $ 412 $ 390 Other 16 26 Accounts receivable, gross 428 416 Allowance for doubtful accounts (5) (7) Total accounts receivable, net $ 423 $ 409

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Jun. 30, 2019
Inventory Disclosure [Abstract]
Summary of Inventory	The following summarizes Valvoline’s inventories as of: (In millions) June 30 September 30 Finished products $ 210 $ 189 Raw materials, supplies and work in process 34 30 Reserve for LIFO cost valuation (41) (40) Excess and obsolete inventory reserves (3) (3) Total inventories, net $ 200 $ 176

Goodwill and Other Intangibles

Goodwill and Other Intangibles (Tables)	9 Months Ended
	Jun. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The following table summarizes the changes in the carrying amount of goodwill by reportable segment and in total during the nine months ended June 30, 2019: (In millions) Quick Lubes Core North America International Total Balance at September 30, 2018 $ 252 $ 89 $ 40 $ 381 Acquisitions (a) 34 — — 34 Balance at June 30, 2019 $ 286 $ 89 $ 40 $ 415 (a) Refer to Note 4 for details regarding acquisitions completed during the nine months ended June 30, 2019.
Schedule of Definite-Lived Intangible Assets	The following summarizes the gross carrying amounts and accumulated amortization of the Company’s intangible assets as of: June 30, 2019 September 30, 2018 (In millions) Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated amortization Net carrying amount Definite-lived intangible assets Trademarks and trade names $ 30 $ (4) $ 26 $ 29 $ (2) $ 27 Reacquired franchise rights 37 (7) 30 32 (4) 28 Customer relationships 21 (4) 17 14 (3) 11 Other intangible assets 3 (1) 2 1 — 1 Total definite-lived intangible assets $ 91 $ (16) $ 75 $ 76 $ (9) $ 67

Restructuring Activities (Table

Restructuring Activities (Tables)	9 Months Ended
	Jun. 30, 2019
Restructuring and Related Activities [Abstract]
Schedule of Restructuring Related Liability	Accrued expenses and other liabilities: (In millions) Employee Termination Benefits Balance at September 30, 2018 $ — Expenses recognized during the period 10 Payments (1) Balance at June 30, 2019 $ 9

Debt (Tables)

Debt (Tables)	9 Months Ended
	Jun. 30, 2019
Debt Disclosure [Abstract]
Schedule of Total Debt	The following table summarizes Valvoline’s total debt as of: (In millions) June 30 September 30 2018 2025 Notes $ 400 $ 400 2024 Notes 375 375 Term Loans 575 270 Revolvers — 147 Trade Receivables Facility — 140 Other (a) (9) (10) Total debt $ 1,341 $ 1,322 Current portion of long-term debt 7 30 Long-term debt $ 1,334 $ 1,292 (a) Other includes debt issuance costs and discounts of $10 million and $11 million as of June 30, 2019 and September 30, 2018, respectively. In addition, Other includes $1 million of debt as of June 30, 2019 and September 30, 2018 which was primarily acquired through acquisitions.

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Schedule of Income Tax Expense and Effective Tax Rate	The following summarizes income tax expense and the effective tax rate in each interim period: Three months ended June 30 Nine months ended June 30 (In millions) 2019 2018 2019 2018 Income tax expense $ 20 $ 33 $ 56 $ 154 Effective tax rate percentage 23.5 % 34.0 % 23.6 % 56.0 %

Employee Benefit Plans (Tables)

Employee Benefit Plans (Tables)	9 Months Ended
	Jun. 30, 2019
Retirement Benefits [Abstract]
Components of Pension and Other Postretirement Benefit Income	The following table summarizes the components of pension and other postretirement benefit cost (income): Other postretirement benefits Pension benefits (In millions) 2019 2018 2019 2018 Three months ended June 30 Service cost $ — $ — $ — $ — Interest cost 21 19 — — Expected return on plan assets (20) (26) — — Amortization of prior service credit — — (3) (3) Net periodic benefit cost (income) $ 1 $ (7) $ (3) $ (3) Nine months ended June 30 Service cost $ 1 $ 1 $ — $ — Interest cost 61 56 1 1 Expected return on plan assets (60) (78) — — Amortization of prior service credit — — (9) (9) Net periodic benefit cost (income) $ 2 $ (21) $ (8) $ (8)

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Jun. 30, 2019
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table summarizes basic and diluted earnings per share for the following periods: Three months ended Nine months ended June 30 June 30 (In millions, except per share data) 2019 2018 2019 2018 Numerator Net income $ 65 $ 64 $ 181 $ 121 Denominator Weighted average common shares outstanding 189 195 189 199 Effect of potentially dilutive securities (a) — 1 — 1 Weighted average diluted shares outstanding 189 196 189 200 Earnings per share Basic $ 0.34 $ 0.33 $ 0.96 $ 0.61 Diluted $ 0.34 $ 0.33 $ 0.96 $ 0.61

Reportable Segment Information

Reportable Segment Information (Tables)	9 Months Ended
	Jun. 30, 2019
Segment Reporting [Abstract]
Schedule of Segment Reporting Information	The following table presents sales and operating income for each reportable segment: Three months ended Nine months ended (In millions) June 30 June 30 2019 2018 2019 2018 Sales Quick Lubes $ 211 $ 167 $ 600 $ 479 Core North America 260 264 735 773 International 142 146 426 439 Consolidated sales $ 613 $ 577 $ 1,761 $ 1,691 Operating income Quick Lubes $ 48 $ 38 $ 130 $ 111 Core North America 38 41 109 130 International 20 20 61 63 Total operating segments 106 99 300 304 Unallocated and other (a) (4) 3 (15) (14) Consolidated operating income $ 102 $ 102 $ 285 $ 290 (a) Unallocated and other includes Legacy and separation-related expenses, net, and restructuring and related expenses.

Guarantor Financial Informati_2

Guarantor Financial Information (Tables)	9 Months Ended
	Jun. 30, 2019
Condensed Financial Information Disclosure [Abstract]
Condensed Consolidating Statements of Comprehensive Income	The following tables present, on a consolidating basis, the condensed statements of comprehensive income, condensed balance sheets, and condensed statements of cash flows for the parent issuer of these Senior Notes, the Guarantor Subsidiaries on a combined basis, the Non-Guarantor Subsidiaries on a combined basis, and the eliminations necessary to arrive at the Company’s consolidated results. Condensed Consolidating Statements of Comprehensive Income For the three months ended June 30, 2019 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Sales $ — $ 491 $ 140 $ (18) $ 613 Cost of sales — 324 100 (18) 406 Gross profit — 167 40 — 207 Selling, general and administrative expenses 3 87 26 — 116 Net legacy and separation-related expenses — — — — — Equity and other (income) expenses, net — (16) 5 — (11) Operating (loss) income (3) 96 9 — 102 Net pension and other postretirement plan income — (2) — — (2) Net interest and other financing expenses 17 2 — — 19 (Loss) income before income taxes (20) 96 9 — 85 Income tax (benefit) expense (5) 24 1 — 20 Equity in net income of subsidiaries (80) (8) — 88 — Net income $ 65 $ 80 $ 8 $ (88) $ 65 Total comprehensive income $ 63 $ 78 $ 9 $ (87) $ 63 Condensed Consolidating Statements of Comprehensive Income For the three months ended June 30, 2018 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Sales $ — $ 456 $ 137 $ (16) $ 577 Cost of sales — 294 98 (16) 376 Gross profit — 162 39 — 201 Selling, general and administrative expenses 3 81 26 — 110 Net legacy and separation-related income (3) — — — (3) Equity and other (income) expenses, net — (11) 3 — (8) Operating income — 92 10 — 102 Net pension and other postretirement plan income — (10) — — (10) Net interest and other financing expenses 14 1 — — 15 (Loss) income before income taxes (14) 101 10 — 97 Income tax (benefit) expense (1) 30 4 — 33 Equity in net income of subsidiaries (77) (6) — 83 — Net income $ 64 $ 77 $ 6 $ (83) $ 64 Total comprehensive income $ 48 $ 61 $ (5) $ (56) $ 48 Condensed Consolidating Statements of Comprehensive Income For the nine months ended June 30, 2019 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Sales $ — $ 1,396 $ 415 $ (50) $ 1,761 Cost of sales — 917 301 (50) 1,168 Gross profit — 479 114 — 593 Selling, general and administrative expenses 8 258 68 — 334 Net legacy and separation-related expenses 3 — — — 3 Equity and other (income) expenses, net — (43) 14 — (29) Operating (loss) income (11) 264 32 — 285 Net pension and other postretirement plan income — (7) — — (7) Net interest and other financing expenses 47 5 3 — 55 (Loss) income before income taxes (58) 266 29 — 237 Income tax (benefit) expense (16) 65 7 — 56 Equity in net income of subsidiaries (223) (22) — 245 — Net income $ 181 $ 223 $ 22 $ (245) $ 181 Total comprehensive income $ 173 $ 215 $ 20 $ (235) $ 173 Condensed Consolidating Statements of Comprehensive Income For the nine months ended June 30, 2018 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Sales $ — $ 1,319 $ 413 $ (41) $ 1,691 Cost of sales — 832 297 (41) 1,088 Gross profit — 487 116 — 603 Selling, general and administrative expenses 10 247 71 — 328 Net legacy and separation-related expenses 4 10 — — 14 Equity and other (income) expenses, net — (37) 8 — (29) Operating (loss) income (14) 267 37 — 290 Net pension and other postretirement plan income — (30) — — (30) Net interest and other financing expenses 39 4 2 — 45 (Loss) income before income taxes (53) 293 35 — 275 Income tax expense 16 128 10 — 154 Equity in net income of subsidiaries (190) (25) — 215 — Net income $ 121 $ 190 $ 25 $ (215) $ 121 Total comprehensive income $ 105 $ 174 $ 17 $ (191) $ 105
Condensed Income Statement	The following tables present, on a consolidating basis, the condensed statements of comprehensive income, condensed balance sheets, and condensed statements of cash flows for the parent issuer of these Senior Notes, the Guarantor Subsidiaries on a combined basis, the Non-Guarantor Subsidiaries on a combined basis, and the eliminations necessary to arrive at the Company’s consolidated results. Condensed Consolidating Statements of Comprehensive Income For the three months ended June 30, 2019 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Sales $ — $ 491 $ 140 $ (18) $ 613 Cost of sales — 324 100 (18) 406 Gross profit — 167 40 — 207 Selling, general and administrative expenses 3 87 26 — 116 Net legacy and separation-related expenses — — — — — Equity and other (income) expenses, net — (16) 5 — (11) Operating (loss) income (3) 96 9 — 102 Net pension and other postretirement plan income — (2) — — (2) Net interest and other financing expenses 17 2 — — 19 (Loss) income before income taxes (20) 96 9 — 85 Income tax (benefit) expense (5) 24 1 — 20 Equity in net income of subsidiaries (80) (8) — 88 — Net income $ 65 $ 80 $ 8 $ (88) $ 65 Total comprehensive income $ 63 $ 78 $ 9 $ (87) $ 63 Condensed Consolidating Statements of Comprehensive Income For the three months ended June 30, 2018 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Sales $ — $ 456 $ 137 $ (16) $ 577 Cost of sales — 294 98 (16) 376 Gross profit — 162 39 — 201 Selling, general and administrative expenses 3 81 26 — 110 Net legacy and separation-related income (3) — — — (3) Equity and other (income) expenses, net — (11) 3 — (8) Operating income — 92 10 — 102 Net pension and other postretirement plan income — (10) — — (10) Net interest and other financing expenses 14 1 — — 15 (Loss) income before income taxes (14) 101 10 — 97 Income tax (benefit) expense (1) 30 4 — 33 Equity in net income of subsidiaries (77) (6) — 83 — Net income $ 64 $ 77 $ 6 $ (83) $ 64 Total comprehensive income $ 48 $ 61 $ (5) $ (56) $ 48 Condensed Consolidating Statements of Comprehensive Income For the nine months ended June 30, 2019 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Sales $ — $ 1,396 $ 415 $ (50) $ 1,761 Cost of sales — 917 301 (50) 1,168 Gross profit — 479 114 — 593 Selling, general and administrative expenses 8 258 68 — 334 Net legacy and separation-related expenses 3 — — — 3 Equity and other (income) expenses, net — (43) 14 — (29) Operating (loss) income (11) 264 32 — 285 Net pension and other postretirement plan income — (7) — — (7) Net interest and other financing expenses 47 5 3 — 55 (Loss) income before income taxes (58) 266 29 — 237 Income tax (benefit) expense (16) 65 7 — 56 Equity in net income of subsidiaries (223) (22) — 245 — Net income $ 181 $ 223 $ 22 $ (245) $ 181 Total comprehensive income $ 173 $ 215 $ 20 $ (235) $ 173 Condensed Consolidating Statements of Comprehensive Income For the nine months ended June 30, 2018 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Sales $ — $ 1,319 $ 413 $ (41) $ 1,691 Cost of sales — 832 297 (41) 1,088 Gross profit — 487 116 — 603 Selling, general and administrative expenses 10 247 71 — 328 Net legacy and separation-related expenses 4 10 — — 14 Equity and other (income) expenses, net — (37) 8 — (29) Operating (loss) income (14) 267 37 — 290 Net pension and other postretirement plan income — (30) — — (30) Net interest and other financing expenses 39 4 2 — 45 (Loss) income before income taxes (53) 293 35 — 275 Income tax expense 16 128 10 — 154 Equity in net income of subsidiaries (190) (25) — 215 — Net income $ 121 $ 190 $ 25 $ (215) $ 121 Total comprehensive income $ 105 $ 174 $ 17 $ (191) $ 105
Condensed Consolidating Balance Sheets	Condensed Consolidating Balance Sheets As of June 30, 2019 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets Cash and cash equivalents $ — $ 29 $ 97 $ — $ 126 Accounts receivable, net — 203 359 (139) 423 Inventories, net — 117 83 — 200 Prepaid expenses and other current assets 1 29 22 — 52 Total current assets 1 378 561 (139) 801 Noncurrent assets Property, plant and equipment, net — 408 47 — 455 Goodwill and intangibles, net — 418 72 — 490 Equity method investments — 35 — — 35 Investment in subsidiaries 1,158 553 — (1,711) — Deferred income taxes 79 19 15 — 113 Other noncurrent assets 3 95 8 — 106 Total noncurrent assets $ 1,240 1,528 142 (1,711) 1,199 Total assets $ 1,241 $ 1,906 $ 703 $ (1,850) $ 2,000 Liabilities and Stockholders’ Deficit Current liabilities Current portion of long-term debt $ 7 $ — $ — $ — $ 7 Trade and other payables 97 107 98 (139) 163 Accrued expenses and other liabilities 20 188 34 — 242 Total current liabilities 124 295 132 (139) 412 Noncurrent liabilities Long-term debt 1,333 1 — — 1,334 Employee benefit obligations — 305 17 — 322 Other noncurrent liabilities 36 147 1 — 184 Total noncurrent liabilities 1,369 453 18 — 1,840 Commitments and contingencies Stockholders’ (deficit) equity (252) 1,158 553 (1,711) (252) Total liabilities and stockholders’ deficit / equity $ 1,241 $ 1,906 $ 703 $ (1,850) $ 2,000 Condensed Consolidating Balance Sheets As of September 30, 2018 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets Cash and cash equivalents $ — $ 20 $ 76 $ — $ 96 Accounts receivable, net — 48 480 (119) 409 Inventories, net — 95 81 — 176 Prepaid expenses and other current assets 1 38 5 — 44 Total current assets 1 201 642 (119) 725 Noncurrent assets Property, plant and equipment, net — 384 36 — 420 Goodwill and intangibles, net — 396 52 — 448 Equity method investments — 31 — — 31 Investment in subsidiaries 801 509 — (1,310) — Deferred income taxes 62 63 13 — 138 Other noncurrent assets 2 85 5 — 92 Total noncurrent assets 865 1,468 106 (1,310) 1,129 Total assets $ 866 $ 1,669 $ 748 $ (1,429) $ 1,854 Liabilities and Stockholders’ Deficit Current liabilities Current portion of long-term debt $ 30 $ — $ — $ — $ 30 Trade and other payables 3 241 53 (119) 178 Accrued expenses and other liabilities 7 168 28 — 203 Total current liabilities 40 409 81 (119) 411 Noncurrent liabilities Long-term debt 1,151 1 140 — 1,292 Employee benefit obligations — 317 16 — 333 Other noncurrent liabilities 33 141 2 — 176 Total noncurrent liabilities 1,184 459 158 — 1,801 Commitments and contingencies Stockholders’ (deficit) equity (358) 801 509 (1,310) (358) Total liabilities and stockholders’ deficit / equity $ 866 $ 1,669 $ 748 $ (1,429) $ 1,854
Condensed Consolidating Statements of Cash Flows	Condensed Consolidating Statements of Cash Flows For the nine months ended June 30, 2019 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows (used in) provided by operating activities $ (94) $ 98 $ 210 $ — $ 214 Cash flows from investing activities Additions to property, plant and equipment — (60) (13) — (73) Acquisitions, net of cash acquired — (28) (22) — (50) Other investing activities, net — 1 (2) — (1) Cash flows used in investing activities — (87) (37) — (124) Cash flows from financing activities Proceeds from borrowings, net of issuance costs 661 — 82 — 743 Repayments on borrowings (505) — (222) — (727) Payments for purchase of additional ownership in subsidiary — — (1) — (1) Cash dividends paid (60) — — — (60) Other financing activities (2) (2) — — (4) Cash flows provided by (used in) financing activities 94 (2) (141) — (49) Effect of currency exchange rate changes on cash, cash equivalents, and restricted cash — — — — — Increase in cash, cash equivalents, and restricted cash — 9 32 — 41 Cash, cash equivalents, and restricted cash - beginning of year — 20 76 — 96 Cash, cash equivalents, and restricted cash - end of period $ — $ 29 $ 108 $ — $ 137 Condensed Consolidating Statements of Cash Flows For the nine months ended June 30, 2018 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows (used in) provided by operating activities $ (28) $ 287 $ (78) $ — $ 181 Cash flows from investing activities Additions to property, plant and equipment — (48) (3) — (51) Acquisitions, net of cash acquired — (71) — — (71) Other investing activities, net — 5 — — 5 Return of advance from subsidiary 263 — — (263) — Cash flows provided by (used in) investing activities 263 (114) (3) (263) (117) Cash flows from financing activities Proceeds from borrowings, net of issuance costs 70 — 100 — 170 Repayments on borrowings (38) — (1) — (39) Repurchases of common stock (220) — — — (220) Payments for purchase of additional ownership in subsidiary — — (15) — (15) Cash dividends paid (45) — — — (45) Other financing activities (2) (2) (2) — (6) Other intercompany activity, net — (263) — 263 — Total cash (used in) provided by financing activities (235) (265) 82 263 (155) Effect of currency exchange rate changes on cash, cash equivalents, and restricted cash — — (3) — (3) Decrease in cash, cash equivalents and restricted cash — (92) (2) — (94) Cash, cash equivalents, and restricted cash - beginning of year — 99 102 — 201 Cash, cash equivalents, and restricted cash - end of period $ — $ 7 $ 100 $ — $ 107

Basis of Presentation and Sig_3

Basis of Presentation and Significant Accounting Policies (Details) - USD ($)	Jun. 30, 2019	Oct. 01, 2018	Sep. 30, 2018
Increase in retained deficit	$ 291,000,000	$ 412,000,000	$ 399,000,000
Restricted cash	11,000,000		$ 0
Capitalized implementation costs	$ 3,000,000
ASU 2014-09
Increase in retained deficit		$ 13,000,000

Revenue Recognition - Cumulativ

Revenue Recognition - Cumulative Effect and Impact of New Accounting Pronouncements (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended						9 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Jun. 30, 2019	Jun. 30, 2018	Oct. 01, 2018	Sep. 30, 2018
Statement of Financial Position [Abstract]
Accounts receivable, net	$ 423						$ 423		$ 376	$ 409
Inventories, net	200						200		190	176
Deferred income taxes	113						113		144	138
Accrued expenses and other liabilities	242						242			203
Retained deficit	291						291		412	399
Statement of Comprehensive Income [Abstract]
Sales	613			$ 577			1,761	$ 1,691
Cost of sales	406			376			1,168	1,088
Gross profit	207			201			593	603
Selling, general and administrative expenses	116			110			334	328
Equity and other income, net	11			8			29	29
Operating income	102			102			285	290
Income before income taxes	85			97			237	275
Income tax expense	20			33			56	154
Net income	$ 65	$ 63	$ 53	$ 64	$ 67	$ (10)	$ 181	$ 121
Basic earnings per share (usd per share)	$ 0.34			$ 0.33			$ 0.96	$ 0.61
Diluted earnings per share (usd per share)	$ 0.34			$ 0.33			$ 0.96	$ 0.61
Under prior guidance
Statement of Financial Position [Abstract]
Accounts receivable, net	$ 460						$ 460			409
Inventories, net	185						185			176
Deferred income taxes	107						107			138
Accrued expenses and other liabilities	241						241
Retained deficit	276						276			$ 399
Statement of Comprehensive Income [Abstract]
Sales	603						1,727
Cost of sales	392						1,126
Gross profit	211						601
Selling, general and administrative expenses	119						340
Equity and other income, net	12						30
Operating income	104						288
Income before income taxes	87						240
Income tax expense	21						57
Net income	$ 66						$ 183
Basic earnings per share (usd per share)	$ 0.35						$ 0.97
Diluted earnings per share (usd per share)	$ 0.35						$ 0.97
ASU 2014-09
Statement of Financial Position [Abstract]
Retained deficit									13
ASU 2014-09 | Adjustments
Statement of Financial Position [Abstract]
Accounts receivable, net	$ 37						$ 37		(33)
Inventories, net	(15)						(15)		14
Deferred income taxes	(6)						(6)		6
Accrued expenses and other liabilities	(1)						(1)
Retained deficit	(15)						(15)		$ 13
Statement of Comprehensive Income [Abstract]
Sales	(10)						(34)
Cost of sales	(14)						(42)
Gross profit	4						8
Selling, general and administrative expenses	3						6
Equity and other income, net	1						1
Operating income	2						3
Income before income taxes	2						3
Income tax expense	1						1
Net income	$ 1						$ 2
Basic earnings per share (usd per share)	$ 0.01						$ 0.01
Diluted earnings per share (usd per share)	$ 0.01						$ 0.01

Revenue Recognition - Disaggreg

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Disaggregation of Revenue [Line Items]
Sales	$ 613	$ 577	$ 1,761	$ 1,691
Sales at a point in time
Disaggregation of Revenue [Line Items]
Sales	602		1,730
Franchised revenues transferred over time
Disaggregation of Revenue [Line Items]
Sales	11		31
North America
Disaggregation of Revenue [Line Items]
Sales	471		1,335
Europe, Middle East and Africa ("EMEA")
Disaggregation of Revenue [Line Items]
Sales	43		134
Asia Pacific
Disaggregation of Revenue [Line Items]
Sales	72		212
Latin America
Disaggregation of Revenue [Line Items]
Sales	27		80
Quick Lubes
Disaggregation of Revenue [Line Items]
Sales	211		600
Quick Lubes | North America
Disaggregation of Revenue [Line Items]
Sales	211		600
Quick Lubes | Europe, Middle East and Africa ("EMEA")
Disaggregation of Revenue [Line Items]
Sales	0		0
Quick Lubes | Asia Pacific
Disaggregation of Revenue [Line Items]
Sales	0		0
Quick Lubes | Latin America
Disaggregation of Revenue [Line Items]
Sales	0		0
Core North America
Disaggregation of Revenue [Line Items]
Sales	260		735
Core North America | North America
Disaggregation of Revenue [Line Items]
Sales	260		735
Core North America | Europe, Middle East and Africa ("EMEA")
Disaggregation of Revenue [Line Items]
Sales	0		0
Core North America | Asia Pacific
Disaggregation of Revenue [Line Items]
Sales	0		0
Core North America | Latin America
Disaggregation of Revenue [Line Items]
Sales	0		0
International
Disaggregation of Revenue [Line Items]
Sales	142		426
International | North America
Disaggregation of Revenue [Line Items]
Sales	0		0
International | Europe, Middle East and Africa ("EMEA")
Disaggregation of Revenue [Line Items]
Sales	43		134
International | Asia Pacific
Disaggregation of Revenue [Line Items]
Sales	72		212
International | Latin America
Disaggregation of Revenue [Line Items]
Sales	27		80
Company-owned operations | Quick Lubes
Disaggregation of Revenue [Line Items]
Sales	136		388
Non-company owned operations | Quick Lubes
Disaggregation of Revenue [Line Items]
Sales	75		212
Retail | Core North America
Disaggregation of Revenue [Line Items]
Sales	143		399
Installer and other | Core North America
Disaggregation of Revenue [Line Items]
Sales	$ 117		$ 336

Revenue Recognition - Narrative

Revenue Recognition - Narrative (Details)	9 Months Ended
	Jun. 30, 2019numberOfPrincipalActivitiesnumberOfSegments
Revenue from Contract with Customer [Abstract]
Number of principal activities | numberOfPrincipalActivities	3
Number of reportable segments | numberOfSegments	3
Sales at a point in time
Disaggregation of Revenue [Line Items]
Percentage of revenue recognized	98.00%
Franchised revenues transferred over time
Disaggregation of Revenue [Line Items]
Percentage of revenue recognized	2.00%
Minimum
Disaggregation of Revenue [Line Items]
Payment terms	30 days
Expected timing of satisfaction for revenue performance obligations	10 years
Maximum
Disaggregation of Revenue [Line Items]
Payment terms	60 days
Expected timing of satisfaction for revenue performance obligations	15 years

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Assets and Liabilities at Fair Value (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions	Jun. 30, 2019	Sep. 30, 2018
Other noncurrent assets
Total assets at fair value	$ 60	$ 53
Accrued expenses and other liabilities
Total liabilities at fair value	2	1
Level 1
Other noncurrent assets
Non-qualified trust funds	21	25
Level 1 | Money market funds
Cash and cash equivalents
Cash and cash equivalents	3	5
Level 2
Prepaid expenses and other current assets
Currency derivatives	1	1
Accrued expenses and other liabilities
Currency derivatives	2	1
Level 2 | Time deposits
Cash and cash equivalents
Cash and cash equivalents	34	22
Prepaid expenses and other current assets
Time deposits	$ 1	$ 0

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2019	Sep. 30, 2018
Foreign Exchange Contract | Not Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Outstanding derivative contracts notional value	$ 82	$ 74

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value of Debt (Details) - USD ($) $ in Millions	Jun. 30, 2019	Sep. 30, 2018
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Unamortized discount and issuance costs	$ 10	$ 11
Level 2 | Fair value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	789	752
Level 2 | Fair value | Senior Notes | 2024 Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	388	376
Level 2 | Fair value | Senior Notes | 2025 Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	401	376
Level 2 | Carrying value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	766	765
Unamortized discount and issuance costs	9	10
Level 2 | Carrying value | Senior Notes | 2024 Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	371	370
Unamortized discount and issuance costs	4	5
Level 2 | Carrying value | Senior Notes | 2025 Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	395	395
Unamortized discount and issuance costs	$ 5	$ 5

Acquisitions and Divestitures -

Acquisitions and Divestitures - Narrative (Details) $ in Millions	9 Months Ended
	Jun. 30, 2019USD ($)service_center_storenumberOfFranchiseServiceCentersnumberOfFormerFranchiseCenters	Jun. 30, 2018USD ($)service_center_storenumberOfFormerFranchiseCenters
Business Acquisition [Line Items]
Number of service center stores acquired	54	63
Consideration for acquisition | $	$ 50	$ 71
Number of former franchise service centers acquired | numberOfFormerFranchiseCenters	5	60
Number of service center stores acquired in single and multi-store transactions	18
Oil Changers, Inc.
Business Acquisition [Line Items]
Number of franchise service center stores acquired | numberOfFranchiseServiceCenters	31

Acquisitions and Divestitures_2

Acquisitions and Divestitures - Summary of Consideration Paid and Assets and Liabilities Acquired (Details) - USD ($) $ in Millions	9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Business Acquisition [Line Items]
Inventories	$ 0	$ 1
Property, plant and equipment	3	2
Goodwill	34	42
Net assets acquired	$ 50	71
Weighted average amortization period	10 years
Reacquired franchise rights
Business Acquisition [Line Items]
Intangible assets	$ 5	26
Customer relationships
Business Acquisition [Line Items]
Intangible assets	5	0
Trademarks and trade names
Business Acquisition [Line Items]
Intangible assets	1	0
Other
Business Acquisition [Line Items]
Intangible assets	$ 2	$ 0

Accounts Receivable - Summary o

Accounts Receivable - Summary of Accounts Receivable (Details) - USD ($) $ in Millions	Jun. 30, 2019	Oct. 01, 2018	Sep. 30, 2018
Receivables [Abstract]
Trade	$ 412		$ 390
Other	16		26
Accounts receivable, gross	428		416
Allowance for doubtful accounts	(5)		(7)
Total accounts receivable, net	$ 423	$ 376	$ 409

Accounts Receivable - Narrative

Accounts Receivable - Narrative (Details) - USD ($) $ in Millions	9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Receivables [Abstract]
Accounts receivable sold to financial institutions	$ 63	$ 50

Inventories - Schedule of Inven

Inventories - Schedule of Inventory (Details) - USD ($) $ in Millions	Jun. 30, 2019	Oct. 01, 2018	Sep. 30, 2018
Inventory Disclosure [Abstract]
Finished products	$ 210		$ 189
Raw materials, supplies and work in process	34		30
Reserve for LIFO cost valuation	(41)		(40)
Excess and obsolete inventory reserves	(3)		(3)
Total inventories, net	$ 200	$ 190	$ 176

Goodwill and Other Intangible_2

Goodwill and Other Intangibles - Summary of Goodwill by Segment (Details) $ in Millions	9 Months Ended
	Jun. 30, 2019USD ($)
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 381
Acquisitions	34
Goodwill, ending balance	415
Quick Lubes
Goodwill [Roll Forward]
Goodwill, beginning balance	252
Acquisitions	34
Goodwill, ending balance	286
Core North America
Goodwill [Roll Forward]
Goodwill, beginning balance	89
Acquisitions	0
Goodwill, ending balance	89
International
Goodwill [Roll Forward]
Goodwill, beginning balance	40
Acquisitions	0
Goodwill, ending balance	$ 40

Goodwill and Other Intangible_3

Goodwill and Other Intangibles - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Millions	Jun. 30, 2019	Sep. 30, 2018
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 91	$ 76
Accumulated amortization	(16)	(9)
Net carrying amount	75	67
Trademarks and trade names
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	30	29
Accumulated amortization	(4)	(2)
Net carrying amount	26	27
Reacquired franchise rights
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	37	32
Accumulated amortization	(7)	(4)
Net carrying amount	30	28
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	21	14
Accumulated amortization	(4)	(3)
Net carrying amount	17	11
Other
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	3	1
Accumulated amortization	(1)	0
Net carrying amount	$ 2	$ 1

Restructuring Activities - Narr

Restructuring Activities - Narrative (Details) $ in Millions	3 Months Ended	9 Months Ended
	Jun. 30, 2019USD ($)	Jun. 30, 2019USD ($)
Minimum
Restructuring Cost and Reserve [Line Items]
Expected costs for restructuring activities	$ 3	$ 3
Maximum
Restructuring Cost and Reserve [Line Items]
Expected costs for restructuring activities	5	5
Employee Termination Benefits
Restructuring Cost and Reserve [Line Items]
Expenses recognized during the period	$ 4	$ 10

Restructuring Activities - Sche

Restructuring Activities - Schedule of Restructuring Activity (Details) - Employee Termination Benefits - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Jun. 30, 2019	Jun. 30, 2019
Restructuring Reserve [Roll Forward]
Balance at September 30, 2018		$ 0
Expenses recognized during the period	$ 4	10
Payments		(1)
Balance at June 30, 2019	$ 9	$ 9

Debt - Schedule of Short-Term B

Debt - Schedule of Short-Term Borrowings and Long Term Debt (Details) - USD ($)	Jun. 30, 2019	Sep. 30, 2018
Debt Instrument [Line Items]
Other	$ (9,000,000)	$ (10,000,000)
Total debt	1,341,000,000	1,322,000,000
Current portion of long-term debt	7,000,000	30,000,000
Long-term debt	1,334,000,000	1,292,000,000
Debt issuance cost discounts	10,000,000	11,000,000
Debt acquired through acquisitions	1,000,000	1,000,000
Line of Credit | Revolvers
Debt Instrument [Line Items]
Long-term debt	0	147,000,000
2025 Notes | Senior Notes
Debt Instrument [Line Items]
Debt gross	400,000,000	400,000,000
2024 Notes | Senior Notes
Debt Instrument [Line Items]
Debt gross	375,000,000	375,000,000
Term Loans | Line of Credit | Secured Debt
Debt Instrument [Line Items]
Debt gross	575,000,000	270,000,000
Trade Receivables Facility | Line of Credit | Secured Debt
Debt Instrument [Line Items]
Long-term debt	$ 0	$ 140,000,000

Debt - Senior Notes (Details)

Debt - Senior Notes (Details) - Senior Notes - USD ($)	Aug. 31, 2017	Jul. 31, 2016
2025 Notes
Debt Instrument [Line Items]
Interest rate on senior unsecured notes	4.375%
Aggregate principal amount	$ 400,000,000
2024 Notes
Debt Instrument [Line Items]
Interest rate on senior unsecured notes		5.50%
Aggregate principal amount		$ 375,000,000

Debt - Senior Credit Agreement

Debt - Senior Credit Agreement (Details)	Apr. 12, 2019USD ($)	Apr. 11, 2019USD ($)	Jun. 30, 2019USD ($)	Sep. 30, 2016USD ($)
2016 Credit Facilities
Debt Instrument [Line Items]
Original principal amount of debt				$ 1,325,000,000
2019 Credit Facilities
Debt Instrument [Line Items]
Original principal amount of debt	$ 1,050,000,000
2019 Credit Facilities | Line of Credit
Debt Instrument [Line Items]
Maximum consolidated net leverage ratio			4.5
Minimum consolidated interest coverage ratio			3
2019 Revolver
Debt Instrument [Line Items]
Letters of credit outstanding			$ 9,000,000
Secured Debt | 2016 Term Loans | Line of Credit
Debt Instrument [Line Items]
Original principal amount of debt				$ 875,000,000
Term of debt				5 years
Repayments of long-term debt	255,000,000	$ 15,000,000
Secured Debt | 2019 Term Loans | Line of Credit
Debt Instrument [Line Items]
Original principal amount of debt	$ 575,000,000
Term of debt	5 years
Quarterly installments due beginning in 2020			7,000,000
Quarterly installments due beginning in 2021			14,000,000
Secured Debt | Trade Receivables Facility | Line of Credit
Debt Instrument [Line Items]
Original principal amount of debt			175,000,000
Repayments of long-term debt	$ 120,000,000
Revolvers | 2016 Revolver | Line of Credit
Debt Instrument [Line Items]
Original principal amount of debt				$ 450,000,000
Term of debt				5 years
Line of credit, sublimit				$ 100,000,000
Borrowings from revolving credit facility			39,000,000
Repayments of long-term debt	186,000,000
Revolvers | 2019 Revolver | Line of Credit
Debt Instrument [Line Items]
Original principal amount of debt	$ 475,000,000
Term of debt	5 years
Line of credit, sublimit	$ 100,000,000
Total borrowing capacity remaining			$ 466,000,000
LIBOR | Minimum | 2019 Credit Facilities
Debt Instrument [Line Items]
Spread on variable rates			1.375%
LIBOR | Maximum | 2019 Credit Facilities
Debt Instrument [Line Items]
Spread on variable rates			2.00%
Base Rate | Minimum | 2019 Credit Facilities
Debt Instrument [Line Items]
Spread on variable rates			0.375%
Base Rate | Maximum | 2019 Credit Facilities
Debt Instrument [Line Items]
Spread on variable rates			1.00%

Debt - Trade Receivables Facili

Debt - Trade Receivables Facility (Details) - USD ($)	9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Sep. 30, 2018
Debt Instrument [Line Items]
Proceeds from borrowings	$ 743,000,000	$ 170,000,000
Repayments of long-term debt	727,000,000	$ 39,000,000
Line of Credit | Trade Receivables Facility | Secured Debt
Debt Instrument [Line Items]
Original principal amount of debt	175,000,000
Long-term debt outstanding amount	0		$ 140,000,000
Proceeds from borrowings	82,000,000
Repayments of long-term debt	222,000,000
Line of Credit | Trade Receivables Facility | Secured Debt | Financing Subsidiary
Debt Instrument [Line Items]
Accounts receivable pledged as collateral	$ 274,000,000		$ 275,000,000

Income Taxes - Schedule of Inco

Income Taxes - Schedule of Income Tax Expense and Effective Tax Rate (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Income tax expense	$ 20	$ 33	$ 56	$ 154
Effective tax rate percentage	23.50%	34.00%	23.60%	56.00%

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income Tax Contingency [Line Items]
Income tax (benefit) expense	$ 20	$ 33	$ 56	$ 154
Tax cuts and jobs act of 2017, income tax expense		$ 6		$ 76
Kentucky
Income Tax Contingency [Line Items]
Income tax (benefit) expense			$ (5)

Employee Benefit Plans - Compon

Employee Benefit Plans - Components of Pension and Other Postretirement Benefit Income (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Pension benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 0	$ 0	$ 1	$ 1
Interest cost	21	19	61	56
Expected return on plan assets	(20)	(26)	(60)	(78)
Amortization of prior service credit	0	0	0	0
Net periodic benefit cost (income)	1	(7)	2	(21)
Other postretirement benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	0	0	0	0
Interest cost	0	0	1	1
Expected return on plan assets	0	0	0	0
Amortization of prior service credit	(3)	(3)	(9)	(9)
Net periodic benefit cost (income)	$ (3)	$ (3)	$ (8)	$ (8)

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended						9 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Jun. 30, 2019	Jun. 30, 2018
Numerator
Net income	$ 65	$ 63	$ 53	$ 64	$ 67	$ (10)	$ 181	$ 121
Denominator
Weighted-average common shares outstanding (shares)	189			195			189	199
Effect of potentially dilutive securities (shares)	0			1			0	1
Weighted average diluted shares outstanding (shares)	189			196			189	200
Earnings per share
Basic (usd per share)	$ 0.34			$ 0.33			$ 0.96	$ 0.61
Diluted (usd per share)	$ 0.34			$ 0.33			$ 0.96	$ 0.61
Shares excluded from diluted earnings per share calculation due to anti-dilutive effect (shares)	1						2

Reportable Segment Informatio_2

Reportable Segment Information - Narrative (Details)	9 Months Ended
	Jun. 30, 2019numberOfSegmentsnumberOfCountries
Segment Reporting Information [Line Items]
Number of reportable segments | numberOfSegments	3
Non-US
Segment Reporting Information [Line Items]
Number of countries where our products are sold | numberOfCountries	140

Reportable Segment Informatio_3

Reportable Segment Information - Sales and Operating Income by Reportable Segment (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Segment Reporting Information [Line Items]
Sales	$ 613	$ 577	$ 1,761	$ 1,691
Operating income	102	102	285	290
Quick Lubes
Segment Reporting Information [Line Items]
Sales	211		600
Core North America
Segment Reporting Information [Line Items]
Sales	260		735
International
Segment Reporting Information [Line Items]
Sales	142		426
Operating Segments
Segment Reporting Information [Line Items]
Operating income	106	99	300	304
Operating Segments | Quick Lubes
Segment Reporting Information [Line Items]
Sales	211	167	600	479
Operating income	48	38	130	111
Operating Segments | Core North America
Segment Reporting Information [Line Items]
Sales	260	264	735	773
Operating income	38	41	109	130
Operating Segments | International
Segment Reporting Information [Line Items]
Sales	142	146	426	439
Operating income	20	20	61	63
Unallocated and Other
Segment Reporting Information [Line Items]
Operating income	$ (4)	$ 3	$ (15)	$ (14)

Guarantor Financial Informati_3

Guarantor Financial Information - Condensed Consolidating Statements of Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended						9 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Jun. 30, 2019	Jun. 30, 2018
Net Income (Loss) Attributable to Parent [Abstract]
Sales	$ 613			$ 577			$ 1,761	$ 1,691
Cost of sales	406			376			1,168	1,088
Gross profit	207			201			593	603
Selling, general and administrative expenses	116			110			334	328
Net legacy and separation-related (income) expenses	0			(3)			3	14
Equity and other (income) expenses, net	(11)			(8)			(29)	(29)
Operating income	102			102			285	290
Net pension and other postretirement plan income	(2)			(10)			(7)	(30)
Net interest and other financing expenses	19			15			55	45
Income before income taxes	85			97			237	275
Income tax (benefit) expense	20			33			56	154
Equity in net income of subsidiaries	0			0			0	0
Net income	65	$ 63	$ 53	64	$ 67	$ (10)	181	121
Comprehensive income	63			48			173	105
Eliminations
Net Income (Loss) Attributable to Parent [Abstract]
Sales	(18)			(16)			(50)	(41)
Cost of sales	(18)			(16)			(50)	(41)
Gross profit	0			0			0	0
Selling, general and administrative expenses	0			0			0	0
Net legacy and separation-related (income) expenses	0			0			0	0
Equity and other (income) expenses, net	0			0			0	0
Operating income	0			0			0	0
Net pension and other postretirement plan income	0			0			0	0
Net interest and other financing expenses	0			0			0	0
Income before income taxes	0			0			0	0
Income tax (benefit) expense	0			0			0	0
Equity in net income of subsidiaries	88			83			245	215
Net income	(88)			(83)			(245)	(215)
Comprehensive income	(87)			(56)			(235)	(191)
Valvoline Inc. (Parent Issuer) | Reportable Legal Entities
Net Income (Loss) Attributable to Parent [Abstract]
Sales	0			0			0	0
Cost of sales	0			0			0	0
Gross profit	0			0			0	0
Selling, general and administrative expenses	3			3			8	10
Net legacy and separation-related (income) expenses	0			(3)			3	4
Equity and other (income) expenses, net	0			0			0	0
Operating income	(3)			0			(11)	(14)
Net pension and other postretirement plan income	0			0			0	0
Net interest and other financing expenses	17			14			47	39
Income before income taxes	(20)			(14)			(58)	(53)
Income tax (benefit) expense	(5)			(1)			(16)	16
Equity in net income of subsidiaries	(80)			(77)			(223)	(190)
Net income	65			64			181	121
Comprehensive income	63			48			173	105
Guarantor Subsidiaries | Reportable Legal Entities
Net Income (Loss) Attributable to Parent [Abstract]
Sales	491			456			1,396	1,319
Cost of sales	324			294			917	832
Gross profit	167			162			479	487
Selling, general and administrative expenses	87			81			258	247
Net legacy and separation-related (income) expenses	0			0			0	10
Equity and other (income) expenses, net	(16)			(11)			(43)	(37)
Operating income	96			92			264	267
Net pension and other postretirement plan income	(2)			(10)			(7)	(30)
Net interest and other financing expenses	2			1			5	4
Income before income taxes	96			101			266	293
Income tax (benefit) expense	24			30			65	128
Equity in net income of subsidiaries	(8)			(6)			(22)	(25)
Net income	80			77			223	190
Comprehensive income	78			61			215	174
Non-Guarantor Subsidiaries | Reportable Legal Entities
Net Income (Loss) Attributable to Parent [Abstract]
Sales	140			137			415	413
Cost of sales	100			98			301	297
Gross profit	40			39			114	116
Selling, general and administrative expenses	26			26			68	71
Net legacy and separation-related (income) expenses	0			0			0	0
Equity and other (income) expenses, net	5			3			14	8
Operating income	9			10			32	37
Net pension and other postretirement plan income	0			0			0	0
Net interest and other financing expenses	0			0			3	2
Income before income taxes	9			10			29	35
Income tax (benefit) expense	1			4			7	10
Equity in net income of subsidiaries	0			0			0	0
Net income	8			6			22	25
Comprehensive income	$ 9			$ (5)			$ 20	$ 17

Guarantor Financial Informati_4

Guarantor Financial Information - Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Oct. 01, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017
Current assets
Cash and cash equivalents	$ 126				$ 96
Accounts receivable, net	423			$ 376	409
Inventories, net	200			190	176
Prepaid expenses and other current assets	52				44
Total current assets	801				725
Noncurrent assets
Property, plant and equipment, net	455				420
Goodwill and intangibles, net	490				448
Equity method investments	35				31
Investment in subsidiaries	0				0
Deferred income taxes	113			$ 144	138
Other noncurrent assets	106				92
Total noncurrent assets	1,199				1,129
Total assets	2,000				1,854
Current liabilities
Current portion of long-term debt	7				30
Trade and other payables	163				178
Accrued expenses and other liabilities	242				203
Total current liabilities	412				411
Noncurrent liabilities
Long-term debt	1,334				1,292
Employee benefit obligations	322				333
Other noncurrent liabilities	184				176
Total noncurrent liabilities	1,840				1,801
Commitments and contingencies
Stockholders’ (deficit) equity	(252)	$ (298)	$ (343)		(358)	$ (288)	$ (226)	$ (194)	$ (117)
Total liabilities and stockholders’ deficit	2,000				1,854
Eliminations
Current assets
Cash and cash equivalents	0				0
Accounts receivable, net	(139)				(119)
Inventories, net	0				0
Prepaid expenses and other current assets	0				0
Total current assets	(139)				(119)
Noncurrent assets
Property, plant and equipment, net	0				0
Goodwill and intangibles, net	0				0
Equity method investments	0				0
Investment in subsidiaries	(1,711)				(1,310)
Deferred income taxes	0				0
Other noncurrent assets	0				0
Total noncurrent assets	(1,711)				(1,310)
Total assets	(1,850)				(1,429)
Current liabilities
Current portion of long-term debt	0				0
Trade and other payables	(139)				(119)
Accrued expenses and other liabilities	0				0
Total current liabilities	(139)				(119)
Noncurrent liabilities
Long-term debt	0				0
Employee benefit obligations	0				0
Other noncurrent liabilities	0				0
Total noncurrent liabilities	0				0
Stockholders’ (deficit) equity	(1,711)				(1,310)
Total liabilities and stockholders’ deficit	(1,850)				(1,429)
Valvoline Inc. (Parent Issuer) | Reportable Legal Entities
Current assets
Cash and cash equivalents	0				0
Accounts receivable, net	0				0
Inventories, net	0				0
Prepaid expenses and other current assets	1				1
Total current assets	1				1
Noncurrent assets
Property, plant and equipment, net	0				0
Goodwill and intangibles, net	0				0
Equity method investments	0				0
Investment in subsidiaries	1,158				801
Deferred income taxes	79				62
Other noncurrent assets	3				2
Total noncurrent assets	1,240				865
Total assets	1,241				866
Current liabilities
Current portion of long-term debt	7				30
Trade and other payables	97				3
Accrued expenses and other liabilities	20				7
Total current liabilities	124				40
Noncurrent liabilities
Long-term debt	1,333				1,151
Employee benefit obligations	0				0
Other noncurrent liabilities	36				33
Total noncurrent liabilities	1,369				1,184
Stockholders’ (deficit) equity	(252)				(358)
Total liabilities and stockholders’ deficit	1,241				866
Guarantor Subsidiaries | Reportable Legal Entities
Current assets
Cash and cash equivalents	29				20
Accounts receivable, net	203				48
Inventories, net	117				95
Prepaid expenses and other current assets	29				38
Total current assets	378				201
Noncurrent assets
Property, plant and equipment, net	408				384
Goodwill and intangibles, net	418				396
Equity method investments	35				31
Investment in subsidiaries	553				509
Deferred income taxes	19				63
Other noncurrent assets	95				85
Total noncurrent assets	1,528				1,468
Total assets	1,906				1,669
Current liabilities
Current portion of long-term debt	0				0
Trade and other payables	107				241
Accrued expenses and other liabilities	188				168
Total current liabilities	295				409
Noncurrent liabilities
Long-term debt	1				1
Employee benefit obligations	305				317
Other noncurrent liabilities	147				141
Total noncurrent liabilities	453				459
Stockholders’ (deficit) equity	1,158				801
Total liabilities and stockholders’ deficit	1,906				1,669
Non-Guarantor Subsidiaries | Reportable Legal Entities
Current assets
Cash and cash equivalents	97				76
Accounts receivable, net	359				480
Inventories, net	83				81
Prepaid expenses and other current assets	22				5
Total current assets	561				642
Noncurrent assets
Property, plant and equipment, net	47				36
Goodwill and intangibles, net	72				52
Equity method investments	0				0
Investment in subsidiaries	0				0
Deferred income taxes	15				13
Other noncurrent assets	8				5
Total noncurrent assets	142				106
Total assets	703				748
Current liabilities
Current portion of long-term debt	0				0
Trade and other payables	98				53
Accrued expenses and other liabilities	34				28
Total current liabilities	132				81
Noncurrent liabilities
Long-term debt	0				140
Employee benefit obligations	17				16
Other noncurrent liabilities	1				2
Total noncurrent liabilities	18				158
Stockholders’ (deficit) equity	553				509
Total liabilities and stockholders’ deficit	$ 703				$ 748

Guarantor Financial Informati_5

Guarantor Financial Information - Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions	9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Condensed Cash Flow Statements, Captions [Line Items]
Cash flows (used in) provided by operating activities	$ 214	$ 181
Cash flows from investing activities
Additions to property, plant and equipment	(73)	(51)
Acquisitions, net of cash acquired	(50)	(71)
Other investing activities, net	(1)	5
Return of advance from subsidiary		0
Total cash used in investing activities	(124)	(117)
Cash flows from financing activities
Proceeds from borrowings, net of issuance costs	743	170
Repayments on borrowings	(727)	(39)
Repurchases of common stock	0	(220)
Payments for purchase of additional ownership in subsidiary	(1)	(15)
Cash dividends paid	(60)	(45)
Other financing activities	(4)	(6)
Other intercompany activity, net		0
Total cash used in financing activities	(49)	(155)
Effect of currency exchange rate changes on cash, cash equivalents, and restricted cash	0	(3)
Increase (decrease) in cash, cash equivalents, and restricted cash	41	(94)
Cash, cash equivalents, and restricted cash - beginning of period	96	201
Cash, cash equivalents, and restricted cash - end of period	137	107
Reportable Legal Entities | Valvoline Inc. (Parent Issuer)
Condensed Cash Flow Statements, Captions [Line Items]
Cash flows (used in) provided by operating activities	(94)	(28)
Cash flows from investing activities
Additions to property, plant and equipment	0	0
Acquisitions, net of cash acquired	0	0
Other investing activities, net	0	0
Return of advance from subsidiary		263
Total cash used in investing activities	0	263
Cash flows from financing activities
Proceeds from borrowings, net of issuance costs	661	70
Repayments on borrowings	(505)	(38)
Repurchases of common stock		(220)
Payments for purchase of additional ownership in subsidiary	0	0
Cash dividends paid	(60)	(45)
Other financing activities	(2)	(2)
Other intercompany activity, net		0
Total cash used in financing activities	94	(235)
Effect of currency exchange rate changes on cash, cash equivalents, and restricted cash	0	0
Increase (decrease) in cash, cash equivalents, and restricted cash	0	0
Cash, cash equivalents, and restricted cash - beginning of period	0	0
Cash, cash equivalents, and restricted cash - end of period	0	0
Reportable Legal Entities | Guarantor Subsidiaries
Condensed Cash Flow Statements, Captions [Line Items]
Cash flows (used in) provided by operating activities	98	287
Cash flows from investing activities
Additions to property, plant and equipment	(60)	(48)
Acquisitions, net of cash acquired	(28)	(71)
Other investing activities, net	1	5
Return of advance from subsidiary		0
Total cash used in investing activities	(87)	(114)
Cash flows from financing activities
Proceeds from borrowings, net of issuance costs	0	0
Repayments on borrowings	0	0
Repurchases of common stock		0
Payments for purchase of additional ownership in subsidiary	0	0
Cash dividends paid	0	0
Other financing activities	(2)	(2)
Other intercompany activity, net		(263)
Total cash used in financing activities	(2)	(265)
Effect of currency exchange rate changes on cash, cash equivalents, and restricted cash	0	0
Increase (decrease) in cash, cash equivalents, and restricted cash	9	(92)
Cash, cash equivalents, and restricted cash - beginning of period	20	99
Cash, cash equivalents, and restricted cash - end of period	29	7
Reportable Legal Entities | Non-Guarantor Subsidiaries
Condensed Cash Flow Statements, Captions [Line Items]
Cash flows (used in) provided by operating activities	210	(78)
Cash flows from investing activities
Additions to property, plant and equipment	(13)	(3)
Acquisitions, net of cash acquired	(22)	0
Other investing activities, net	(2)	0
Return of advance from subsidiary		0
Total cash used in investing activities	(37)	(3)
Cash flows from financing activities
Proceeds from borrowings, net of issuance costs	82	100
Repayments on borrowings	(222)	(1)
Repurchases of common stock		0
Payments for purchase of additional ownership in subsidiary	(1)	(15)
Cash dividends paid	0	0
Other financing activities	0	(2)
Other intercompany activity, net		0
Total cash used in financing activities	(141)	82
Effect of currency exchange rate changes on cash, cash equivalents, and restricted cash	0	(3)
Increase (decrease) in cash, cash equivalents, and restricted cash	32	(2)
Cash, cash equivalents, and restricted cash - beginning of period	76	102
Cash, cash equivalents, and restricted cash - end of period	108	100
Eliminations
Condensed Cash Flow Statements, Captions [Line Items]
Cash flows (used in) provided by operating activities	0	0
Cash flows from investing activities
Additions to property, plant and equipment	0	0
Acquisitions, net of cash acquired	0	0
Other investing activities, net	0	0
Return of advance from subsidiary		(263)
Total cash used in investing activities	0	(263)
Cash flows from financing activities
Proceeds from borrowings, net of issuance costs	0	0
Repayments on borrowings	0	0
Repurchases of common stock		0
Payments for purchase of additional ownership in subsidiary	0	0
Cash dividends paid	0	0
Other financing activities	0	0
Other intercompany activity, net		263
Total cash used in financing activities	0	263
Effect of currency exchange rate changes on cash, cash equivalents, and restricted cash	0	0
Increase (decrease) in cash, cash equivalents, and restricted cash	0	0
Cash, cash equivalents, and restricted cash - beginning of period	0	0
Cash, cash equivalents, and restricted cash - end of period	$ 0	$ 0

Subsequent Events (Details)

Subsequent Events (Details) $ / shares in Units, $ in Millions	Jul. 18, 2019$ / shares	Jul. 31, 2019USD ($)numberOfAquisitionsservice_center_storecompany-owned_and_franchised_locations	Jun. 30, 2019USD ($)service_center_store	Jun. 30, 2018USD ($)service_center_store
Subsequent Event [Line Items]
Consideration for acquisition | $			$ 50	$ 71
Number of service center stores acquired | service_center_store			54	63
Subsequent Event
Subsequent Event [Line Items]
Consideration for acquisition | $		$ 18
Number of acquisitions completed | numberOfAquisitions		4
Number of service center stores acquired | service_center_store		3
Dividend per share (usd per share) | $ / shares	$ 0.106
Number of company-owned Quick Lube locations | company-owned_and_franchised_locations		500

Uncategorized Items - vvv-20190

Label	Element	Value
Accounting Standards Update 2014-09 [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ (13,000,000)
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ (13,000,000)