Valvoline (VVV) 10-Q 4 Feb 20 2020 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Dec. 31, 2019	Jan. 31, 2020
Cover page.
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Dec. 31, 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		188,448,171
Entity Central Index Key	0001674910
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Income - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Net Income (Loss) Attributable to Parent [Abstract]
Sales	$ 607	$ 557
Cost of sales	396	374
Gross profit	211	183
Selling, general and administrative expenses	117	105
Legacy and separation related expenses,income, net	(1)	0
Equity and other income, net	(9)	(9)
Operating income	104	87
Net pension and other postretirement plan income	(9)	(2)
Net interest and other financing expenses	16	17
Income before income taxes	97	72
Income tax expense	24	19
Net income	$ 73	$ 53
NET INCOME PER SHARE
Basic (usd per share)	$ 0.39	$ 0.28
Diluted (usd per share)	$ 0.39	$ 0.28
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic (shares)	189	188
Diluted (shares)	189	189
COMPREHENSIVE INCOME
Net income	$ 73	$ 53
Other comprehensive income (loss), net of tax
Currency translation adjustments	8	(4)
Amortization of pension and other postretirement plan prior service credit	(2)	(2)
Other comprehensive income (loss)	6	(6)
Comprehensive income	$ 79	$ 47

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2019	Sep. 30, 2019
Assets, Current [Abstract]
Cash and cash equivalents	$ 162	$ 159
Accounts receivable, net	395	401
Inventories, net	194	194
Prepaid expenses and other current assets	43	43
Total current assets	794	797
Noncurrent assets
Property, plant and equipment, net	479	498
Operating lease assets	253	0
Goodwill and intangibles, net	507	504
Equity method investments	39	34
Deferred income taxes	116	123
Other noncurrent assets	109	108
Total noncurrent assets	1,503	1,267
Total assets	2,297	2,064
Current liabilities
Current portion of long-term debt	22	15
Trade and other payables	153	171
Accrued expenses and other liabilities	246	237
Total current liabilities	421	423
Noncurrent liabilities
Long-term debt	1,320	1,327
Employee benefit obligations	376	387
Operating lease liabilities, noncurrent	224	0
Other noncurrent liabilities	152	185
Total noncurrent liabilities	2,072	1,899
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 December 31, 2019 and September 30, 2019	2	2
Paid-in capital	16	13
Retained deficit	(231)	(284)
Accumulated other comprehensive income	17	11
Total stockholders’ deficit	(196)	(258)
Total liabilities and stockholders’ deficit	$ 2,297	$ 2,064

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2019	Sep. 30, 2019
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, 2018		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, 2019	188	188
Balance at beginning of period at Sep. 30, 2019	$ (258)	$ 2	13	(284)	11
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	73			73
Dividends paid	(21)			(21)
Stock-based compensation	3		3
Currency translation adjustments	8				8
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, 2019	188	188
Balance at end of period at Dec. 31, 2019	$ (196)	$ 2	$ 16	(231)	$ 17
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of adoption of new leasing standard, net of tax | ASU 2014-09				$ 1

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Deficit (Parenthetical) - $ / shares	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Statement of Stockholders' Equity [Abstract]
Dividends paid per common share (usd per share)	$ 0.113	$ 0.106

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities
Net income	$ 73	$ 53
Adjustments to reconcile net income to cash flows from operating activities
Depreciation and amortization	16	14
Equity income from unconsolidated affiliates, net of distributions	(2)	0
Pension contributions	(4)	(2)
Stock-based compensation expense	4	3
Other, net	2	0
Change in assets and liabilities
Accounts receivable	7	43
Inventories	4	(13)
Payables and accrued liabilities	(47)	(19)
Other assets and liabilities	6	6
Total cash provided by operating activities	59	85
Cash flows from investing activities
Additions to property, plant and equipment	(28)	(27)
Acquisitions, net of cash acquired	(6)	(30)
Other investing activities, net	(1)	1
Total cash used in investing activities	(35)	(56)
Cash flows from financing activities
Proceeds from borrowings	0	100
Repayments on borrowings	0	(101)
Cash dividends paid	(21)	(20)
Other financing activities	(2)	(4)
Total cash used in financing activities	(23)	(25)
Effect of currency exchange rate changes on cash, cash equivalents, and restricted cash	3	(1)
Increase (decrease) in cash, cash equivalents, and restricted cash	4	3
Cash, cash equivalents, and restricted cash - beginning of period	159	96
Cash, cash equivalents, and restricted cash - end of period	$ 163	$ 99

Basis of Presentation and Signi

Basis of Presentation and Significant Accounting Policies	3 Months Ended
	Dec. 31, 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, 2019. 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 February 2016, the Financial Accounting Standards Board ("FASB") issued accounting guidance, which outlined a comprehensive lease accounting model that requires lessees to recognize a right-of-use asset and a corresponding lease liability on the balance sheet and superseded previous lease accounting guidance. Valvoline adopted this new lease accounting guidance on October 1, 2019 using the optional transition approach. Under this approach, the new lease accounting 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. Lease expense is recognized similar to prior accounting guidance with operating leases resulting in straight-line expense and finance leases resulting in accelerated expense recognition similar to the prior accounting for capital leases. The accounting for lessor arrangements is not significantly changed by the new guidance. Valvoline elected 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 commenced 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 did not elect the hindsight or short-term lease practical expedients. As a result of adoption, the Company recognized operating lease assets and liabilities inclusive of a reclassified build-to-suit arrangement, derecognized assets and liabilities related to the build-to-suit arrangement, and carried forward existing capital leases as finance lease assets and liabilities. This resulted in a material impact on the Condensed Consolidated Balance Sheet and the recognition of total incremental lease assets, inclusive of prepaid lease balances and deferred rent liabilities, of $219 million and incremental lease liabilities of $214 million, with an immaterial cumulative effect adjustment to reduce Retained deficit as a result of the build-to-suit lease transition requirements. The impact of adoption was not material to the Condensed Consolidated Statements of Comprehensive Income, Cash Flows, or Stockholders’ Deficit, and did not impact the Company's compliance with any of its existing debt covenants. Refer to Note 2 for additional information regarding Valvoline's adoption of this new guidance. Issued but not yet adopted In June 2016, the FASB issued updated guidance that introduces a forward-looking approach based on expected losses, rather than incurred losses, to estimate credit losses on certain types of financial instruments including trade and other receivables. The new guidance will require entities to incorporate historical, current, and forecasted information into their estimates of expected credit losses. This guidance also includes expanded disclosure requirements and will become effective for Valvoline on October 1, 2020. The Company is evaluating the effect of adopting this new accounting guidance, including changes to its related processes, and does not currently expect adoption will have a material impact on its Condensed Consolidated Balance Sheet or Condensed Consolidated Statement of Comprehensive Income. The FASB issued other accounting guidance during the period that is not currently applicable or expected to have a material impact on Valvoline’s condensed consolidated financial statements, and therefore, is not described above.

Leasing

Leasing	3 Months Ended
	Dec. 31, 2019
Leases [Abstract]
Leasing	LEASING As described in Note 1, Valvoline adopted new lease accounting guidance effective October 1, 2019 and changed its policy for lease accounting prospectively for lease agreements entered into or reassessed from the date of adoption as described herein. Lessee arrangements Certain of the properties Valvoline utilizes, including quick-lube service center stores, offices, blending and warehouse facilities, in addition to certain equipment, are leased. Valvoline determines if an arrangement contains a lease at inception primarily based on whether or not the Company has the right to control the asset during the contract period. For all agreements where it is determined that a lease exists, including those with an initial term of 12 months or less, the related lease assets and liabilities are recognized on the Condensed Consolidated Balance Sheet as either operating or finance leases at the commencement date. The lease liability is measured at the present value of future lease payments over the lease term, and the right-of-use asset is measured at the lease liability amount, adjusted for prepaid lease payments, lease incentives and the lessee’s initial direct costs (e.g., commissions). The lease term includes options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Fixed payments, including variable payments based on a rate or index, are included in the determination of the lease liability, while other variable payments are recognized in the the Condensed Consolidated Statements of Comprehensive Income in the period in which the obligation for those payments is incurred. Many leases contain lease components requiring rental payments and other components that require payment for taxes, insurance, operating expenses and maintenance. In instances where these other components are fixed, they are included in the measurement of the lease liability due to Valvoline's election to combine lease and non-lease components. Otherwise, these other components are expensed as incurred and comprise the majority of Valvoline's variable lease costs. As most leases do not provide the rate implicit in the lease, the Company estimates its incremental borrowing rate to best approximate the rate of interest that Valvoline would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Valvoline applies the incremental borrowing rate to groups of leases with similar lease terms in determining the present value of future payments. In determining the incremental borrowing rate, the Company considers information available at commencement date, including lease term, interest rate yields for specific interest rate environments and the Company's credit spread. The following table presents the Company's lease balances: (In millions) Location in Condensed Consolidated Balance Sheet December 31, 2019 Assets Operating lease assets Operating lease assets $ 253 Finance lease assets Property, plant and equipment, net 29 Amortization of finance lease assets Property, plant and equipment, net (7) Total leased assets $ 275 Liabilities Current: Operating lease liabilities Accrued expenses and other liabilities $ 30 Finance lease liabilities Accrued expenses and other liabilities 1 Noncurrent: Operating lease liabilities Operating lease liabilities 224 Finance lease liabilities Other noncurrent liabilities 24 Total lease liabilities $ 279 The following table presents the components of total lease costs: (In millions) Location in Condensed Consolidated Statement of Comprehensive Income Three months ended Operating lease cost Cost of sales and Selling, general and administrative expenses (a) $ 11 Finance lease costs Amortization of lease assets Cost of sales (a) — Interest on lease liabilities Net interest and other financing expenses 1 Variable lease cost Cost of sales and Selling, general and administrative expenses (a) 1 Sublease income Equity and other income, net (1) Total lease cost $ 12 (a) Supply chain and retail-related amounts are included in Cost of sales. Other information related to the Company's leases follows: (In millions) Three months ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases (a) $ 10 Operating cash flows from finance leases $ 1 Financing cash flow from finance leases $ — Lease assets obtained in exchange for lease obligations: Operating leases $ 15 Finance leases $ — (a) Included within the change in Other assets and liabilities within the Condensed Consolidated Statement of Cash Flows offset by noncash operating lease asset amortization and liability accretion. The following table reconciles the undiscounted cash flows for the next five fiscal years ended September 30 and thereafter to the operating and finance lease liabilities recorded on the Condensed Consolidated Balance Sheet as of December 31, 2019: (In millions) Operating leases Finance leases Remainder of 2020 $ 30 $ 3 2021 37 4 2022 35 3 2023 31 4 2024 28 4 Thereafter 154 26 Total future lease payments 315 44 Imputed interest 61 19 Present value of lease liabilities $ 254 $ 25 As of December 31, 2019, Valvoline has additional leases primarily related to its quick lube service center stores that have not yet commenced with approximately $45 million in undiscounted future lease payments that are not included in the table above. These leases are expected to commence in fiscal 2020 and generally have lease terms of 15 years. In accordance with the previous lease accounting guidance, Valvoline's lease arrangements were previously classified as either capital, operating, or financing obligations. Previously classified capital leases are now considered finance leases under the new lease accounting guidance, while previous financing obligations have been derecognized and reclassified as operating leases. The classification of operating leases remains substantially unchanged under the new lease accounting guidance. The future minimum lease payments by fiscal year as determined prior to the adoption of the new lease accounting guidance under the previously designated capital, financing and operating leases as of the fiscal year ended September 30, 2019, were as follows: (In millions) Operating leases Capital leases and financing obligations 2020 $ 36 $ 6 2021 32 7 2022 29 7 2023 27 7 2024 23 7 Thereafter 120 50 Total future lease payments (a) $ 267 84 Imputed interest 29 Present value of lease liabilities $ 55 (a) Future lease payments do not include fixed payments for executory costs, such as taxes, insurance, maintenance and operating expenses. The following table presents the weighted average remaining lease term and interest rate as of December 31, 2019: Weighted average remaining lease term (in years): Operating leases 10.0 Finance leases 10.7 Weighted average discount rate: Operating leases 4.13 % Finance leases 11.57 % Lessor arrangements
Leasing	LEASING As described in Note 1, Valvoline adopted new lease accounting guidance effective October 1, 2019 and changed its policy for lease accounting prospectively for lease agreements entered into or reassessed from the date of adoption as described herein. Lessee arrangements Certain of the properties Valvoline utilizes, including quick-lube service center stores, offices, blending and warehouse facilities, in addition to certain equipment, are leased. Valvoline determines if an arrangement contains a lease at inception primarily based on whether or not the Company has the right to control the asset during the contract period. For all agreements where it is determined that a lease exists, including those with an initial term of 12 months or less, the related lease assets and liabilities are recognized on the Condensed Consolidated Balance Sheet as either operating or finance leases at the commencement date. The lease liability is measured at the present value of future lease payments over the lease term, and the right-of-use asset is measured at the lease liability amount, adjusted for prepaid lease payments, lease incentives and the lessee’s initial direct costs (e.g., commissions). The lease term includes options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Fixed payments, including variable payments based on a rate or index, are included in the determination of the lease liability, while other variable payments are recognized in the the Condensed Consolidated Statements of Comprehensive Income in the period in which the obligation for those payments is incurred. Many leases contain lease components requiring rental payments and other components that require payment for taxes, insurance, operating expenses and maintenance. In instances where these other components are fixed, they are included in the measurement of the lease liability due to Valvoline's election to combine lease and non-lease components. Otherwise, these other components are expensed as incurred and comprise the majority of Valvoline's variable lease costs. As most leases do not provide the rate implicit in the lease, the Company estimates its incremental borrowing rate to best approximate the rate of interest that Valvoline would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Valvoline applies the incremental borrowing rate to groups of leases with similar lease terms in determining the present value of future payments. In determining the incremental borrowing rate, the Company considers information available at commencement date, including lease term, interest rate yields for specific interest rate environments and the Company's credit spread. The following table presents the Company's lease balances: (In millions) Location in Condensed Consolidated Balance Sheet December 31, 2019 Assets Operating lease assets Operating lease assets $ 253 Finance lease assets Property, plant and equipment, net 29 Amortization of finance lease assets Property, plant and equipment, net (7) Total leased assets $ 275 Liabilities Current: Operating lease liabilities Accrued expenses and other liabilities $ 30 Finance lease liabilities Accrued expenses and other liabilities 1 Noncurrent: Operating lease liabilities Operating lease liabilities 224 Finance lease liabilities Other noncurrent liabilities 24 Total lease liabilities $ 279 The following table presents the components of total lease costs: (In millions) Location in Condensed Consolidated Statement of Comprehensive Income Three months ended Operating lease cost Cost of sales and Selling, general and administrative expenses (a) $ 11 Finance lease costs Amortization of lease assets Cost of sales (a) — Interest on lease liabilities Net interest and other financing expenses 1 Variable lease cost Cost of sales and Selling, general and administrative expenses (a) 1 Sublease income Equity and other income, net (1) Total lease cost $ 12 (a) Supply chain and retail-related amounts are included in Cost of sales. Other information related to the Company's leases follows: (In millions) Three months ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases (a) $ 10 Operating cash flows from finance leases $ 1 Financing cash flow from finance leases $ — Lease assets obtained in exchange for lease obligations: Operating leases $ 15 Finance leases $ — (a) Included within the change in Other assets and liabilities within the Condensed Consolidated Statement of Cash Flows offset by noncash operating lease asset amortization and liability accretion. The following table reconciles the undiscounted cash flows for the next five fiscal years ended September 30 and thereafter to the operating and finance lease liabilities recorded on the Condensed Consolidated Balance Sheet as of December 31, 2019: (In millions) Operating leases Finance leases Remainder of 2020 $ 30 $ 3 2021 37 4 2022 35 3 2023 31 4 2024 28 4 Thereafter 154 26 Total future lease payments 315 44 Imputed interest 61 19 Present value of lease liabilities $ 254 $ 25 As of December 31, 2019, Valvoline has additional leases primarily related to its quick lube service center stores that have not yet commenced with approximately $45 million in undiscounted future lease payments that are not included in the table above. These leases are expected to commence in fiscal 2020 and generally have lease terms of 15 years. In accordance with the previous lease accounting guidance, Valvoline's lease arrangements were previously classified as either capital, operating, or financing obligations. Previously classified capital leases are now considered finance leases under the new lease accounting guidance, while previous financing obligations have been derecognized and reclassified as operating leases. The classification of operating leases remains substantially unchanged under the new lease accounting guidance. The future minimum lease payments by fiscal year as determined prior to the adoption of the new lease accounting guidance under the previously designated capital, financing and operating leases as of the fiscal year ended September 30, 2019, were as follows: (In millions) Operating leases Capital leases and financing obligations 2020 $ 36 $ 6 2021 32 7 2022 29 7 2023 27 7 2024 23 7 Thereafter 120 50 Total future lease payments (a) $ 267 84 Imputed interest 29 Present value of lease liabilities $ 55 (a) Future lease payments do not include fixed payments for executory costs, such as taxes, insurance, maintenance and operating expenses. The following table presents the weighted average remaining lease term and interest rate as of December 31, 2019: Weighted average remaining lease term (in years): Operating leases 10.0 Finance leases 10.7 Weighted average discount rate: Operating leases 4.13 % Finance leases 11.57 % Lessor arrangements

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Dec. 31, 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: (In millions) Fair Value Hierarchy December 31 2019 September 30 Cash and cash equivalents Money market funds Level 1 $ 1 $ — Time deposits Level 2 62 59 Prepaid expenses and other current assets Currency derivatives (a) Level 2 1 — Other noncurrent assets Non-qualified trust funds Level 1 20 20 Total assets at fair value $ 84 $ 79 Accrued expenses and other liabilities Currency derivatives (a) Level 2 $ 1 $ — Total liabilities at fair value $ 1 $ — (a) The Company had outstanding contracts with notional values of $128 million and $111 million as of December 31, 2019 and September 30, 2019, respectively. There were no material gains or losses recognized in earnings during the three months ended December 31, 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. December 31, 2019 September 30, 2019 (In millions) Fair value Carrying value Unamortized discount and Fair value Carrying value Unamortized 2024 Notes $ 389 $ 371 $ (4) $ 390 $ 371 $ (4) 2025 Notes 416 396 (4) 407 395 (5) Total $ 805 $ 767 $ (8) $ 797 $ 766 $ (9) Refer to Note 7 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	3 Months Ended
	Dec. 31, 2019
Business Combinations [Abstract]
Acquisitions and Divestitures	ACQUISITIONS AND DIVESTITURES Quick Lubes store acquisitions During the three months ended December 31, 2019, the Company acquired nine service center stores in single and multi-store transactions, including two former franchise service center stores, for a total of $6 million. During the three months ended December 31, 2018, the Company acquired 35 service center stores for a total of $30 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 three months ended December 31: (In millions) 2019 2018 Property, plant and equipment $ — $ 1 Goodwill 5 21 Intangible assets (a) Reacquired franchise rights 1 4 Customer relationships — 3 Trademarks and trade names — 1 Net assets acquired $ 6 $ 30 (a) Intangible assets acquired during the three months ended December 31, 2019 have a weighted average amortization period of 6 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. Dispositions

Goodwill and Other Intangibles

Goodwill and Other Intangibles	3 Months Ended
	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Other Intangibles	INTANGIBLE ASSETS The following table summarizes the changes in the carrying amount of goodwill by reportable segment and in total during the three months ended December 31, 2019: (In millions) Quick Lubes Core North America International Total Balance at September 30, 2019 $ 301 $ 89 $ 40 $ 430 Acquisitions (a) 5 — — 5 Currency translation 1 — — 1 Dispositions (a) (3) — — (3) Balance at December 31, 2019 $ 304 $ 89 $ 40 $ 433 (a) Refer to Note 4 for details regarding acquisitions and dispositions completed during the three months ended December 31, 2019.

Restructuring Activities

Restructuring Activities	3 Months Ended
	Dec. 31, 2019
Restructuring and Related Activities [Abstract]
Restructuring Activities	RESTRUCTURING ACTIVITIES During the second fiscal quarter of 2019, Valvoline outlined a broad-based restructuring and cost-savings program 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 were generally completed during 2019, with the associated termination benefits anticipated to be substantially paid by the end of 2020. Since program inception, Valvoline has recognized cumulative costs of $13 million, including $1 million during the three months ended December 31, 2019. These costs are for employee termination benefits, which include severance and other benefits provided to employees pursuant to the restructuring program. These expenses were recognized in Selling, general and administrative expenses within the Condensed Consolidated Statement of Comprehensive Income. The Company does not expect to incur material remaining costs from these actions. The results by segment, as disclosed in Note 12, do not include these 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 presents the expenses recognized related to employee termination benefits during the three months ended December 31, 2019 and the estimated remaining liability, which is included in the Condensed Consolidated Balance Sheet within Accrued expenses and other liabilities: (In millions) Employee Termination Benefits Balance at September 30, 2019 $ 9 Expenses recognized during the period 1 Payments (2) Balance at December 31, 2019 $ 8

Debt

Debt	3 Months Ended
	Dec. 31, 2019
Debt Disclosure [Abstract]
Debt	DEBT The following table summarizes Valvoline’s total debt: (In millions) December 31 2019 September 30 2019 2025 Notes $ 400 $ 400 2024 Notes 375 375 Term Loan 575 575 Other (a) (8) (8) Total debt $ 1,342 $ 1,342 Current portion of long-term debt 22 15 Long-term debt $ 1,320 $ 1,327 (a) As of December 31, 2019 and September 30, 2019, other included debt issuance costs and discounts of $9 million and debt primarily acquired through acquisitions of $1 million. 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 As of December 31 and September 30, 2019, the term loan facility (“Term Loan”) under the senior credit agreement (“Senior Credit Agreement”) had an outstanding principal balance of $575 million. As of December 31 and September 30, 2019, there were no amounts outstanding under the $475 million revolving credit facility (“Revolver”) under the Senior Credit Agreement. There was no net borrowing activity under the Revolver during the three months ended December 31, 2019. As of December 31, 2019, the total borrowing capacity remaining under the Revolver was $466 million due to a reduction of $9 million for letters of credit outstanding. As of December 31, 2019, Valvoline was in compliance with all covenants under the Senior Credit Agreement. Trade Receivables Facility As of December 31 and September 30, 2019, there were no amounts outstanding under the $175 million trade receivables securitization facility (the “Trade Receivables Facility”). During the three months ended December 31, 2019, Valvoline had no net borrowing activity under the Trade Receivables Facility. Based on the availability of eligible receivables, the total borrowing capacity of the Trade Receivables Facility as of December 31, 2019 was $130 million. The financing subsidiary owned $220 million and $259 million of outstanding accounts receivable as of December 31 and September 30, 2019, respectively, which are included in Accounts receivable, net in the Company’s Condensed Consolidated Balance Sheets.

Income Taxes

Income Taxes	3 Months Ended
	Dec. 31, 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 discrete items related specifically to interim periods. The following summarizes income tax expense and the effective tax rate in each interim period: Three months ended December 31 (In millions) 2019 2018 Income tax expense $ 24 $ 19 Effective tax rate percentage 24.7 % 26.4 % The increase in income tax expense over the prior year was principally driven by higher pre-tax earnings, and the lower effective tax rate is attributed to the current year benefit from favorable discrete items compared to unfavorable discrete items in the prior year.

Employee Benefit Plans

Employee Benefit Plans	3 Months Ended
	Dec. 31, 2019
Retirement Benefits [Abstract]
Employee Benefit Plans	EMPLOYEE BENEFIT PLANS The following table summarizes the components of pension and other postretirement benefit income: Other postretirement benefits Pension benefits (In millions) 2019 2018 2019 2018 Three months ended December 31 Service cost $ 1 $ — $ — $ — Interest cost 16 20 — 1 Expected return on plan assets (22) (20) — — Amortization of prior service credit — — (3) (3) Net periodic benefit income $ (5) $ — $ (3) $ (2)

Litigation, Claims and Continge

Litigation, Claims and Contingencies	3 Months Ended
	Dec. 31, 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 not material 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 opinion of management that such pending claims or proceedings will not have a material adverse effect on its condensed consolidated financial statements.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Dec. 31, 2019
Earnings Per Share [Abstract]
Earnings Per Share	EARNINGS PER SHARE The following table summarizes basic and diluted earnings per share: Three months ended December 31 (In millions, except per share data) 2019 2018 Numerator Net income $ 73 $ 53 Denominator Weighted average common shares outstanding 189 188 Effect of potentially dilutive securities (a) — 1 Weighted average diluted shares outstanding 189 189 Earnings per share Basic $ 0.39 $ 0.28 Diluted $ 0.39 $ 0.28 (a) Approximately 1 million and 2 million outstanding securities, primarily stock appreciation rights, were not included in the computation of diluted earnings per share because their effect would have been antidilutive for the three months ended December 31, 2019 and 2018, respectively.

Reportable Segment Information

Reportable Segment Information	3 Months Ended
	Dec. 31, 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 more than 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. Segment financial results The following table presents sales and operating income for each reportable segment: Three months ended (In millions) December 31 2019 2018 Sales Quick Lubes $ 218 $ 189 Core North America 248 232 International 141 136 Consolidated sales $ 607 $ 557 Operating income Quick Lubes $ 38 $ 38 Core North America 46 31 International 20 18 Total operating segments 104 87 Unallocated and other (a) — — Consolidated operating income $ 104 $ 87 (a) Unallocated and other includes net legacy and separation-related income and restructuring and related expenses. Disaggregation of revenue The following table summarizes sales by primary customer channel for the Company’s reportable segments: Three months ended December 31 (In millions) 2019 2018 Quick Lubes Company-owned operations $ 142 $ 124 Non-company owned operations 76 65 Total Quick Lubes 218 189 Core North America Retail 137 116 Installer and other 111 116 Total Core North America 248 232 International 141 136 Consolidated sales $ 607 $ 557 Sales by reportable segment disaggregated by geographic market follows: Three months ended December 31, 2019 (In millions) Quick Lubes Core North America International Totals North America (a) $ 218 $ 248 $ — $ 466 Europe, Middle East and Africa ("EMEA") — — 47 47 Asia Pacific — — 70 70 Latin America (a) — — 24 24 Totals $ 218 $ 248 $ 141 $ 607 Three months ended December 31, 2018 (In millions) Quick Lubes Core North America International Totals North America (a) $ 189 $ 232 $ — $ 421 Europe, Middle East and Africa ("EMEA") — — 44 44 Asia Pacific — — 67 67 Latin America (a) — — 25 25 Totals $ 189 $ 232 $ 136 $ 557

Supplemental Financial Informat

Supplemental Financial Information	3 Months Ended
	Dec. 31, 2019
Supplemental Financial Information [Abstract]
Supplemental Financial Information	SUPPLEMENTAL FINANCIAL INFORMATION Cash, cash equivalents and restricted cash The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets to the totals shown within the Condensed Consolidated Statements of Cash Flows: (In millions) December 31 September 30 December 31 Cash and cash equivalents $ 162 $ 159 $ 99 Restricted cash (a) 1 — — Total cash, cash equivalents and restricted cash $ 163 $ 159 $ 99 (a) Included in Prepaid expenses and other current assets within the Condensed Consolidated Balance Sheets. Accounts receivable The following table summarizes Valvoline’s accounts receivable in the Condensed Consolidated Balance Sheets: (In millions) December 31 September 30 Trade $ 389 $ 392 Other 13 15 Accounts receivable, gross 402 407 Allowance for doubtful accounts (7) (6) Total accounts receivable, net $ 395 $ 401 During the three months ended December 31, 2019, Valvoline did not sell accounts receivable to a financial institution, while $28 million was sold during the three months ended December 31, 2018. 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 table summarizes Valvoline’s inventories in the Condensed Consolidated Balance Sheets: (In millions) December 31 September 30 Finished products $ 197 $ 203 Raw materials, supplies and work in process 37 32 Reserve for LIFO cost valuation (40) (41) Total inventories, net $ 194 $ 194 Revenue recognition The following table disaggregates the Company’s sales by timing of revenue recognized: Three months ended December 31 (In millions) 2019 2018 Sales at a point in time $ 596 $ 547 Franchised revenues transferred over time 11 10 Total consolidated sales $ 607 $ 557

Guarantor Financial Information

Guarantor Financial Information	3 Months Ended
	Dec. 31, 2019
Condensed Financial Information Disclosure [Abstract]
Guarantor Financial Information	GUARANTOR FINANCIAL INFORMATION The Senior Notes detailed in Note 7 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 wholly-owned “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 December 31, 2019 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Sales $ — $ 480 $ 140 $ (13) $ 607 Cost of sales — 309 100 (13) 396 Gross profit — 171 40 — 211 Selling, general and administrative expenses 4 88 25 — 117 Net legacy and separation-related income (1) — — — (1) Equity and other (income) expenses, net — (13) 4 — (9) Operating (loss) income (3) 96 11 — 104 Net pension and other postretirement plan income — (9) — — (9) Net interest and other financing expenses 15 1 — — 16 (Loss) income before income taxes (18) 104 11 — 97 Income tax (benefit) expense (6) 27 3 — 24 Equity in net income of subsidiaries (85) (8) — 93 — Net income $ 73 $ 85 $ 8 $ (93) $ 73 Total comprehensive income $ 79 $ 89 $ 15 $ (104) $ 79 Condensed Consolidating Statements of Comprehensive Income For the three months ended December 31, 2018 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Sales $ — $ 440 $ 132 $ (15) $ 557 Cost of sales — 293 96 (15) 374 Gross profit — 147 36 — 183 Selling, general and administrative expenses 3 81 21 — 105 Equity and other (income) expenses, net — (13) 4 — (9) Operating (loss) income (3) 79 11 — 87 Net pension and other postretirement plan income — (2) — — (2) Net interest and other financing expenses 15 1 1 — 17 (Loss) income before income taxes (18) 80 10 — 72 Income tax (benefit) expense (5) 20 4 — 19 Equity in net income of subsidiaries (66) (6) — 72 — Net income $ 53 $ 66 $ 6 $ (72) $ 53 Total comprehensive income $ 47 $ 60 $ 2 $ (62) $ 47 Condensed Consolidating Balance Sheets As of December 31, 2019 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets Cash and cash equivalents $ — $ 62 $ 100 $ — $ 162 Accounts receivable, net — 245 300 (150) 395 Inventories, net — 108 86 — 194 Prepaid expenses and other current assets 1 32 10 — 43 Total current assets 1 447 496 (150) 794 Noncurrent assets Property, plant and equipment, net — 407 72 — 479 Operating lease assets — 211 42 — 253 Goodwill and intangibles, net — 425 82 — 507 Equity method investments — 39 — — 39 Investment in subsidiaries 1,247 523 — (1,770) — Deferred income taxes 55 47 14 — 116 Other noncurrent assets 3 97 9 — 109 Total noncurrent assets 1,305 1,749 219 (1,770) 1,503 Total assets $ 1,306 $ 2,196 $ 715 $ (1,920) $ 2,297 Liabilities and Stockholders’ Deficit Current liabilities Current portion of long-term debt $ 22 $ — $ — $ — $ 22 Trade and other payables 109 96 98 (150) 153 Accrued expenses and other liabilities 18 182 46 — 246 Total current liabilities 149 278 144 (150) 421 Noncurrent liabilities Long-term debt 1,319 1 — — 1,320 Employee benefit obligations — 359 17 — 376 Operating lease liabilities — 195 29 — 224 Other noncurrent liabilities 34 116 2 — 152 Total noncurrent liabilities 1,353 671 48 — 2,072 Commitments and contingencies Stockholders’ (deficit) equity (196) 1,247 523 (1,770) (196) Total liabilities and stockholders’ deficit / equity $ 1,306 $ 2,196 $ 715 $ (1,920) $ 2,297 Condensed Consolidating Balance Sheets As of September 30, 2019 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets Cash and cash equivalents $ — $ 59 $ 100 $ — $ 159 Accounts receivable, net — 181 338 (118) 401 Inventories, net — 110 84 — 194 Prepaid expenses and other current assets — 35 8 — 43 Total current assets — 385 530 (118) 797 Noncurrent assets Property, plant and equipment, net — 431 67 — 498 Goodwill and intangibles, net — 423 81 — 504 Equity method investments — 34 — — 34 Investment in subsidiaries 1,157 546 — (1,703) — Deferred income taxes 48 61 14 — 123 Other noncurrent assets 3 96 9 — 108 Total noncurrent assets 1,208 1,591 171 (1,703) 1,267 Total assets $ 1,208 $ 1,976 $ 701 $ (1,821) $ 2,064 Liabilities and Stockholders’ Deficit Current liabilities Current portion of long-term debt $ 15 $ — $ — $ — $ 15 Trade and other payables 80 127 82 (118) 171 Accrued expenses and other liabilities 9 175 53 — 237 Total current liabilities 104 302 135 (118) 423 Noncurrent liabilities Long-term debt 1,326 1 — — 1,327 Employee benefit obligations — 369 18 — 387 Other noncurrent liabilities 36 147 2 — 185 Total noncurrent liabilities 1,362 517 20 — 1,899 Commitments and contingencies Stockholders’ (deficit) equity (258) 1,157 546 (1,703) (258) Total liabilities and stockholders’ deficit / equity $ 1,208 $ 1,976 $ 701 $ (1,821) $ 2,064 Condensed Consolidating Statements of Cash Flows For the three months ended December 31, 2019 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows provided by operating activities $ 23 $ 31 $ 5 $ — $ 59 Cash flows from investing activities Additions to property, plant and equipment — (21) (7) — (28) Acquisitions, net of cash acquired — (6) — — (6) Other investing activities, net — (1) — — (1) Cash flows used in investing activities — (28) (7) — (35) Cash flows from financing activities Cash dividends paid (21) — — — (21) Other financing activities (2) — — — (2) Cash flows used in financing activities (23) — — — (23) Effect of currency exchange rate changes on cash, cash equivalents, and restricted cash — — 3 — 3 Increase in cash, cash equivalents, and restricted cash — 3 1 — 4 Cash, cash equivalents, and restricted cash - beginning of year — 59 100 — 159 Cash, cash equivalents, and restricted cash - end of period $ — $ 62 $ 101 $ — $ 163 Condensed Consolidating Statements of Cash Flows For the three months ended December 31, 2018 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows provided by operating activities $ 13 $ 29 $ 43 $ — $ 85 Cash flows from investing activities Additions to property, plant and equipment — (20) (7) — (27) Acquisitions, net of cash acquired — (8) (22) — (30) Other investing activities, net — 1 — — 1 Cash flows used in investing activities — (27) (29) — (56) Cash flows from financing activities Proceeds from borrowings, net of issuance costs 57 — 43 — 100 Repayments on borrowings (48) — (53) — (101) Cash dividends paid (20) — — — (20) Other financing activities (2) (1) (1) — (4) Cash flows used in financing activities (13) (1) (11) — (25) Effect of currency exchange rate changes on cash, cash equivalents, and restricted cash — — (1) — (1) Increase in cash, cash equivalents, and restricted cash — 1 2 — 3 Cash, cash equivalents, and restricted cash - beginning of year — 20 76 — 96 Cash, cash equivalents, and restricted cash - end of period $ — $ 21 $ 78 $ — $ 99

Subsequent Events

Subsequent Events	3 Months Ended
	Dec. 31, 2019
Subsequent Events [Abstract]
Subsequent Events	SUBSEQUENT EVENTS Trade Receivables Facility On January 31, 2020, the Company amended the Trade Receivables Facility to extend the maturity date to November 19, 2021. The capacity available and other relevant terms and conditions of Trade Receivables Facility were substantially unchanged under the amended facility. Dividend declared On January 29, 2020, the Board of Directors of Valvoline declared a quarterly cash dividend of $0.113 per share of Valvoline common stock. The dividend is payable on March 16, 2020 to shareholders of record on February 28, 2020.

Basis of Presentation and Sig_2

Basis of Presentation and Significant Accounting Policies (Policies)	3 Months Ended
	Dec. 31, 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, 2019. 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 February 2016, the Financial Accounting Standards Board ("FASB") issued accounting guidance, which outlined a comprehensive lease accounting model that requires lessees to recognize a right-of-use asset and a corresponding lease liability on the balance sheet and superseded previous lease accounting guidance. Valvoline adopted this new lease accounting guidance on October 1, 2019 using the optional transition approach. Under this approach, the new lease accounting 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. Lease expense is recognized similar to prior accounting guidance with operating leases resulting in straight-line expense and finance leases resulting in accelerated expense recognition similar to the prior accounting for capital leases. The accounting for lessor arrangements is not significantly changed by the new guidance. Valvoline elected 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 commenced 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 did not elect the hindsight or short-term lease practical expedients. As a result of adoption, the Company recognized operating lease assets and liabilities inclusive of a reclassified build-to-suit arrangement, derecognized assets and liabilities related to the build-to-suit arrangement, and carried forward existing capital leases as finance lease assets and liabilities. This resulted in a material impact on the Condensed Consolidated Balance Sheet and the recognition of total incremental lease assets, inclusive of prepaid lease balances and deferred rent liabilities, of $219 million and incremental lease liabilities of $214 million, with an immaterial cumulative effect adjustment to reduce Retained deficit as a result of the build-to-suit lease transition requirements. The impact of adoption was not material to the Condensed Consolidated Statements of Comprehensive Income, Cash Flows, or Stockholders’ Deficit, and did not impact the Company's compliance with any of its existing debt covenants. Refer to Note 2 for additional information regarding Valvoline's adoption of this new guidance. Issued but not yet adopted In June 2016, the FASB issued updated guidance that introduces a forward-looking approach based on expected losses, rather than incurred losses, to estimate credit losses on certain types of financial instruments including trade and other receivables. The new guidance will require entities to incorporate historical, current, and forecasted information into their estimates of expected credit losses. This guidance also includes expanded disclosure requirements and will become effective for Valvoline on October 1, 2020. The Company is evaluating the effect of adopting this new accounting guidance, including changes to its related processes, and does not currently expect adoption will have a material impact on its Condensed Consolidated Balance Sheet or Condensed Consolidated Statement of Comprehensive Income. The FASB issued other accounting guidance during the period that is not currently applicable or expected to have a material impact on Valvoline’s condensed consolidated financial statements, and therefore, is not described above.

Leases, Codification Topic 842

Leases, Codification Topic 842 (Policies)	3 Months Ended
	Dec. 31, 2019
Leases [Abstract]
Lessee, Leases	Lessee arrangements Certain of the properties Valvoline utilizes, including quick-lube service center stores, offices, blending and warehouse facilities, in addition to certain equipment, are leased. Valvoline determines if an arrangement contains a lease at inception primarily based on whether or not the Company has the right to control the asset during the contract period. For all agreements where it is determined that a lease exists, including those with an initial term of 12 months or less, the related lease assets and liabilities are recognized on the Condensed Consolidated Balance Sheet as either operating or finance leases at the commencement date. The lease liability is measured at the present value of future lease payments over the lease term, and the right-of-use asset is measured at the lease liability amount, adjusted for prepaid lease payments, lease incentives and the lessee’s initial direct costs (e.g., commissions). The lease term includes options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Fixed payments, including variable payments based on a rate or index, are included in the determination of the lease liability, while other variable payments are recognized in the the Condensed Consolidated Statements of Comprehensive Income in the period in which the obligation for those payments is incurred. Many leases contain lease components requiring rental payments and other components that require payment for taxes, insurance, operating expenses and maintenance. In instances where these other components are fixed, they are included in the measurement of the lease liability due to Valvoline's election to combine lease and non-lease components. Otherwise, these other components are expensed as incurred and comprise the majority of Valvoline's variable lease costs.

Leasing (Tables)

Leasing (Tables)	3 Months Ended
	Dec. 31, 2019
Leases [Abstract]
Schedule of Lease Balances on the Balance Sheet	The following table presents the Company's lease balances: (In millions) Location in Condensed Consolidated Balance Sheet December 31, 2019 Assets Operating lease assets Operating lease assets $ 253 Finance lease assets Property, plant and equipment, net 29 Amortization of finance lease assets Property, plant and equipment, net (7) Total leased assets $ 275 Liabilities Current: Operating lease liabilities Accrued expenses and other liabilities $ 30 Finance lease liabilities Accrued expenses and other liabilities 1 Noncurrent: Operating lease liabilities Operating lease liabilities 224 Finance lease liabilities Other noncurrent liabilities 24 Total lease liabilities $ 279
Schedule of Lease Costs and Other Information	The following table presents the components of total lease costs: (In millions) Location in Condensed Consolidated Statement of Comprehensive Income Three months ended Operating lease cost Cost of sales and Selling, general and administrative expenses (a) $ 11 Finance lease costs Amortization of lease assets Cost of sales (a) — Interest on lease liabilities Net interest and other financing expenses 1 Variable lease cost Cost of sales and Selling, general and administrative expenses (a) 1 Sublease income Equity and other income, net (1) Total lease cost $ 12 (a) Supply chain and retail-related amounts are included in Cost of sales. Other information related to the Company's leases follows: (In millions) Three months ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases (a) $ 10 Operating cash flows from finance leases $ 1 Financing cash flow from finance leases $ — Lease assets obtained in exchange for lease obligations: Operating leases $ 15 Finance leases $ — (a) Included within the change in Other assets and liabilities within the Condensed Consolidated Statement of Cash Flows offset by noncash operating lease asset amortization and liability accretion. The following table presents the weighted average remaining lease term and interest rate as of December 31, 2019: Weighted average remaining lease term (in years): Operating leases 10.0 Finance leases 10.7 Weighted average discount rate: Operating leases 4.13 % Finance leases 11.57 %
Schedule of Future Lease Payments under Finance Leases After Adoption	The following table reconciles the undiscounted cash flows for the next five fiscal years ended September 30 and thereafter to the operating and finance lease liabilities recorded on the Condensed Consolidated Balance Sheet as of December 31, 2019: (In millions) Operating leases Finance leases Remainder of 2020 $ 30 $ 3 2021 37 4 2022 35 3 2023 31 4 2024 28 4 Thereafter 154 26 Total future lease payments 315 44 Imputed interest 61 19 Present value of lease liabilities $ 254 $ 25
Schedule of Future Lease Payments under Operating Leases After Adoption	The following table reconciles the undiscounted cash flows for the next five fiscal years ended September 30 and thereafter to the operating and finance lease liabilities recorded on the Condensed Consolidated Balance Sheet as of December 31, 2019: (In millions) Operating leases Finance leases Remainder of 2020 $ 30 $ 3 2021 37 4 2022 35 3 2023 31 4 2024 28 4 Thereafter 154 26 Total future lease payments 315 44 Imputed interest 61 19 Present value of lease liabilities $ 254 $ 25
Schedule of Future Minimum Rental Payments for Operating Leases	The future minimum lease payments by fiscal year as determined prior to the adoption of the new lease accounting guidance under the previously designated capital, financing and operating leases as of the fiscal year ended September 30, 2019, were as follows: (In millions) Operating leases Capital leases and financing obligations 2020 $ 36 $ 6 2021 32 7 2022 29 7 2023 27 7 2024 23 7 Thereafter 120 50 Total future lease payments (a) $ 267 84 Imputed interest 29 Present value of lease liabilities $ 55
Schedule of Future Minimum Lease Payments for Operating, Capital and Other Financing Obligations	The future minimum lease payments by fiscal year as determined prior to the adoption of the new lease accounting guidance under the previously designated capital, financing and operating leases as of the fiscal year ended September 30, 2019, were as follows: (In millions) Operating leases Capital leases and financing obligations 2020 $ 36 $ 6 2021 32 7 2022 29 7 2023 27 7 2024 23 7 Thereafter 120 50 Total future lease payments (a) $ 267 84 Imputed interest 29 Present value of lease liabilities $ 55

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Dec. 31, 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: (In millions) Fair Value Hierarchy December 31 2019 September 30 Cash and cash equivalents Money market funds Level 1 $ 1 $ — Time deposits Level 2 62 59 Prepaid expenses and other current assets Currency derivatives (a) Level 2 1 — Other noncurrent assets Non-qualified trust funds Level 1 20 20 Total assets at fair value $ 84 $ 79 Accrued expenses and other liabilities Currency derivatives (a) Level 2 $ 1 $ — Total liabilities at fair value $ 1 $ —
Summary of Fair Value of Debt	Carrying values shown in the following table are net of unamortized discounts and issuance costs. December 31, 2019 September 30, 2019 (In millions) Fair value Carrying value Unamortized discount and Fair value Carrying value Unamortized 2024 Notes $ 389 $ 371 $ (4) $ 390 $ 371 $ (4) 2025 Notes 416 396 (4) 407 395 (5) Total $ 805 $ 767 $ (8) $ 797 $ 766 $ (9)

Acquisitions and Divestitures (

Acquisitions and Divestitures (Tables)	3 Months Ended
	Dec. 31, 2019
Business Combinations [Abstract]
Summary of Consideration Paid and Assets and Liabilities Acquired	: (In millions) 2019 2018 Property, plant and equipment $ — $ 1 Goodwill 5 21 Intangible assets (a) Reacquired franchise rights 1 4 Customer relationships — 3 Trademarks and trade names — 1 Net assets acquired $ 6 $ 30

Goodwill and Other Intangibles

Goodwill and Other Intangibles (Tables)	3 Months Ended
	Dec. 31, 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 three months ended December 31, 2019: (In millions) Quick Lubes Core North America International Total Balance at September 30, 2019 $ 301 $ 89 $ 40 $ 430 Acquisitions (a) 5 — — 5 Currency translation 1 — — 1 Dispositions (a) (3) — — (3) Balance at December 31, 2019 $ 304 $ 89 $ 40 $ 433 (a) Refer to Note 4 for details regarding acquisitions and dispositions completed during the three months ended December 31, 2019.

Restructuring Activities (Table

Restructuring Activities (Tables)	3 Months Ended
	Dec. 31, 2019
Restructuring and Related Activities [Abstract]
Schedule of Restructuring Related Liability	(In millions) Employee Termination Benefits Balance at September 30, 2019 $ 9 Expenses recognized during the period 1 Payments (2) Balance at December 31, 2019 $ 8

Debt (Tables)

Debt (Tables)	3 Months Ended
	Dec. 31, 2019
Debt Disclosure [Abstract]
Schedule of Total Debt	The following table summarizes Valvoline’s total debt: (In millions) December 31 2019 September 30 2019 2025 Notes $ 400 $ 400 2024 Notes 375 375 Term Loan 575 575 Other (a) (8) (8) Total debt $ 1,342 $ 1,342 Current portion of long-term debt 22 15 Long-term debt $ 1,320 $ 1,327 (a) As of December 31, 2019 and September 30, 2019, other included debt issuance costs and discounts of $9 million and debt primarily acquired through acquisitions of $1 million.

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
	Dec. 31, 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 December 31 (In millions) 2019 2018 Income tax expense $ 24 $ 19 Effective tax rate percentage 24.7 % 26.4 %

Employee Benefit Plans (Tables)

Employee Benefit Plans (Tables)	3 Months Ended
	Dec. 31, 2019
Retirement Benefits [Abstract]
Components of Pension and Other Postretirement Benefit Income	The following table summarizes the components of pension and other postretirement benefit income: Other postretirement benefits Pension benefits (In millions) 2019 2018 2019 2018 Three months ended December 31 Service cost $ 1 $ — $ — $ — Interest cost 16 20 — 1 Expected return on plan assets (22) (20) — — Amortization of prior service credit — — (3) (3) Net periodic benefit income $ (5) $ — $ (3) $ (2)

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Dec. 31, 2019
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table summarizes basic and diluted earnings per share: Three months ended December 31 (In millions, except per share data) 2019 2018 Numerator Net income $ 73 $ 53 Denominator Weighted average common shares outstanding 189 188 Effect of potentially dilutive securities (a) — 1 Weighted average diluted shares outstanding 189 189 Earnings per share Basic $ 0.39 $ 0.28 Diluted $ 0.39 $ 0.28 (a) Approximately 1 million and 2 million outstanding securities, primarily stock appreciation rights, were not included in the computation of diluted earnings per share because their effect would have been antidilutive for the three months ended December 31, 2019 and 2018, respectively.

Reportable Segment Information

Reportable Segment Information (Tables)	3 Months Ended
	Dec. 31, 2019
Segment Reporting [Abstract]
Schedule of Segment Reporting Information	The following table presents sales and operating income for each reportable segment: Three months ended (In millions) December 31 2019 2018 Sales Quick Lubes $ 218 $ 189 Core North America 248 232 International 141 136 Consolidated sales $ 607 $ 557 Operating income Quick Lubes $ 38 $ 38 Core North America 46 31 International 20 18 Total operating segments 104 87 Unallocated and other (a) — — Consolidated operating income $ 104 $ 87 (a) Unallocated and other includes net legacy and separation-related income and restructuring and related expenses.
Schedule of Sales Disaggregated by Segment and Geographical Area	The following table summarizes sales by primary customer channel for the Company’s reportable segments: Three months ended December 31 (In millions) 2019 2018 Quick Lubes Company-owned operations $ 142 $ 124 Non-company owned operations 76 65 Total Quick Lubes 218 189 Core North America Retail 137 116 Installer and other 111 116 Total Core North America 248 232 International 141 136 Consolidated sales $ 607 $ 557 Sales by reportable segment disaggregated by geographic market follows: Three months ended December 31, 2019 (In millions) Quick Lubes Core North America International Totals North America (a) $ 218 $ 248 $ — $ 466 Europe, Middle East and Africa ("EMEA") — — 47 47 Asia Pacific — — 70 70 Latin America (a) — — 24 24 Totals $ 218 $ 248 $ 141 $ 607 Three months ended December 31, 2018 (In millions) Quick Lubes Core North America International Totals North America (a) $ 189 $ 232 $ — $ 421 Europe, Middle East and Africa ("EMEA") — — 44 44 Asia Pacific — — 67 67 Latin America (a) — — 25 25 Totals $ 189 $ 232 $ 136 $ 557

Supplemental Financial Inform_2

Supplemental Financial Information (Tables)	3 Months Ended
	Dec. 31, 2019
Supplemental Financial Information [Abstract]
Schedule of Cash and Cash Equivalents	The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets to the totals shown within the Condensed Consolidated Statements of Cash Flows: (In millions) December 31 September 30 December 31 Cash and cash equivalents $ 162 $ 159 $ 99 Restricted cash (a) 1 — — Total cash, cash equivalents and restricted cash $ 163 $ 159 $ 99 (a) Included in Prepaid expenses and other current assets within the Condensed Consolidated Balance Sheets.
Summary of Accounts Receivable	The following table summarizes Valvoline’s accounts receivable in the Condensed Consolidated Balance Sheets: (In millions) December 31 September 30 Trade $ 389 $ 392 Other 13 15 Accounts receivable, gross 402 407 Allowance for doubtful accounts (7) (6) Total accounts receivable, net $ 395 $ 401
Summary of Inventory	The following table summarizes Valvoline’s inventories in the Condensed Consolidated Balance Sheets: (In millions) December 31 September 30 Finished products $ 197 $ 203 Raw materials, supplies and work in process 37 32 Reserve for LIFO cost valuation (40) (41) Total inventories, net $ 194 $ 194
Disaggregaton of Revenue by Timing of Revenue Table Text Block	The following table disaggregates the Company’s sales by timing of revenue recognized: Three months ended December 31 (In millions) 2019 2018 Sales at a point in time $ 596 $ 547 Franchised revenues transferred over time 11 10 Total consolidated sales $ 607 $ 557

Guarantor Financial Informati_2

Guarantor Financial Information (Tables)	3 Months Ended
	Dec. 31, 2019
Condensed Financial Information Disclosure [Abstract]
Condensed Consolidating Statements of Comprehensive Income	Condensed Consolidating Statements of Comprehensive Income For the three months ended December 31, 2019 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Sales $ — $ 480 $ 140 $ (13) $ 607 Cost of sales — 309 100 (13) 396 Gross profit — 171 40 — 211 Selling, general and administrative expenses 4 88 25 — 117 Net legacy and separation-related income (1) — — — (1) Equity and other (income) expenses, net — (13) 4 — (9) Operating (loss) income (3) 96 11 — 104 Net pension and other postretirement plan income — (9) — — (9) Net interest and other financing expenses 15 1 — — 16 (Loss) income before income taxes (18) 104 11 — 97 Income tax (benefit) expense (6) 27 3 — 24 Equity in net income of subsidiaries (85) (8) — 93 — Net income $ 73 $ 85 $ 8 $ (93) $ 73 Total comprehensive income $ 79 $ 89 $ 15 $ (104) $ 79 Condensed Consolidating Statements of Comprehensive Income For the three months ended December 31, 2018 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Sales $ — $ 440 $ 132 $ (15) $ 557 Cost of sales — 293 96 (15) 374 Gross profit — 147 36 — 183 Selling, general and administrative expenses 3 81 21 — 105 Equity and other (income) expenses, net — (13) 4 — (9) Operating (loss) income (3) 79 11 — 87 Net pension and other postretirement plan income — (2) — — (2) Net interest and other financing expenses 15 1 1 — 17 (Loss) income before income taxes (18) 80 10 — 72 Income tax (benefit) expense (5) 20 4 — 19 Equity in net income of subsidiaries (66) (6) — 72 — Net income $ 53 $ 66 $ 6 $ (72) $ 53 Total comprehensive income $ 47 $ 60 $ 2 $ (62) $ 47
Condensed Income Statement	Condensed Consolidating Statements of Comprehensive Income For the three months ended December 31, 2019 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Sales $ — $ 480 $ 140 $ (13) $ 607 Cost of sales — 309 100 (13) 396 Gross profit — 171 40 — 211 Selling, general and administrative expenses 4 88 25 — 117 Net legacy and separation-related income (1) — — — (1) Equity and other (income) expenses, net — (13) 4 — (9) Operating (loss) income (3) 96 11 — 104 Net pension and other postretirement plan income — (9) — — (9) Net interest and other financing expenses 15 1 — — 16 (Loss) income before income taxes (18) 104 11 — 97 Income tax (benefit) expense (6) 27 3 — 24 Equity in net income of subsidiaries (85) (8) — 93 — Net income $ 73 $ 85 $ 8 $ (93) $ 73 Total comprehensive income $ 79 $ 89 $ 15 $ (104) $ 79 Condensed Consolidating Statements of Comprehensive Income For the three months ended December 31, 2018 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Sales $ — $ 440 $ 132 $ (15) $ 557 Cost of sales — 293 96 (15) 374 Gross profit — 147 36 — 183 Selling, general and administrative expenses 3 81 21 — 105 Equity and other (income) expenses, net — (13) 4 — (9) Operating (loss) income (3) 79 11 — 87 Net pension and other postretirement plan income — (2) — — (2) Net interest and other financing expenses 15 1 1 — 17 (Loss) income before income taxes (18) 80 10 — 72 Income tax (benefit) expense (5) 20 4 — 19 Equity in net income of subsidiaries (66) (6) — 72 — Net income $ 53 $ 66 $ 6 $ (72) $ 53 Total comprehensive income $ 47 $ 60 $ 2 $ (62) $ 47
Condensed Consolidating Balance Sheets	Condensed Consolidating Balance Sheets As of December 31, 2019 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets Cash and cash equivalents $ — $ 62 $ 100 $ — $ 162 Accounts receivable, net — 245 300 (150) 395 Inventories, net — 108 86 — 194 Prepaid expenses and other current assets 1 32 10 — 43 Total current assets 1 447 496 (150) 794 Noncurrent assets Property, plant and equipment, net — 407 72 — 479 Operating lease assets — 211 42 — 253 Goodwill and intangibles, net — 425 82 — 507 Equity method investments — 39 — — 39 Investment in subsidiaries 1,247 523 — (1,770) — Deferred income taxes 55 47 14 — 116 Other noncurrent assets 3 97 9 — 109 Total noncurrent assets 1,305 1,749 219 (1,770) 1,503 Total assets $ 1,306 $ 2,196 $ 715 $ (1,920) $ 2,297 Liabilities and Stockholders’ Deficit Current liabilities Current portion of long-term debt $ 22 $ — $ — $ — $ 22 Trade and other payables 109 96 98 (150) 153 Accrued expenses and other liabilities 18 182 46 — 246 Total current liabilities 149 278 144 (150) 421 Noncurrent liabilities Long-term debt 1,319 1 — — 1,320 Employee benefit obligations — 359 17 — 376 Operating lease liabilities — 195 29 — 224 Other noncurrent liabilities 34 116 2 — 152 Total noncurrent liabilities 1,353 671 48 — 2,072 Commitments and contingencies Stockholders’ (deficit) equity (196) 1,247 523 (1,770) (196) Total liabilities and stockholders’ deficit / equity $ 1,306 $ 2,196 $ 715 $ (1,920) $ 2,297 Condensed Consolidating Balance Sheets As of September 30, 2019 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets Cash and cash equivalents $ — $ 59 $ 100 $ — $ 159 Accounts receivable, net — 181 338 (118) 401 Inventories, net — 110 84 — 194 Prepaid expenses and other current assets — 35 8 — 43 Total current assets — 385 530 (118) 797 Noncurrent assets Property, plant and equipment, net — 431 67 — 498 Goodwill and intangibles, net — 423 81 — 504 Equity method investments — 34 — — 34 Investment in subsidiaries 1,157 546 — (1,703) — Deferred income taxes 48 61 14 — 123 Other noncurrent assets 3 96 9 — 108 Total noncurrent assets 1,208 1,591 171 (1,703) 1,267 Total assets $ 1,208 $ 1,976 $ 701 $ (1,821) $ 2,064 Liabilities and Stockholders’ Deficit Current liabilities Current portion of long-term debt $ 15 $ — $ — $ — $ 15 Trade and other payables 80 127 82 (118) 171 Accrued expenses and other liabilities 9 175 53 — 237 Total current liabilities 104 302 135 (118) 423 Noncurrent liabilities Long-term debt 1,326 1 — — 1,327 Employee benefit obligations — 369 18 — 387 Other noncurrent liabilities 36 147 2 — 185 Total noncurrent liabilities 1,362 517 20 — 1,899 Commitments and contingencies Stockholders’ (deficit) equity (258) 1,157 546 (1,703) (258) Total liabilities and stockholders’ deficit / equity $ 1,208 $ 1,976 $ 701 $ (1,821) $ 2,064
Condensed Consolidating Statements of Cash Flows	Condensed Consolidating Statements of Cash Flows For the three months ended December 31, 2019 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows provided by operating activities $ 23 $ 31 $ 5 $ — $ 59 Cash flows from investing activities Additions to property, plant and equipment — (21) (7) — (28) Acquisitions, net of cash acquired — (6) — — (6) Other investing activities, net — (1) — — (1) Cash flows used in investing activities — (28) (7) — (35) Cash flows from financing activities Cash dividends paid (21) — — — (21) Other financing activities (2) — — — (2) Cash flows used in financing activities (23) — — — (23) Effect of currency exchange rate changes on cash, cash equivalents, and restricted cash — — 3 — 3 Increase in cash, cash equivalents, and restricted cash — 3 1 — 4 Cash, cash equivalents, and restricted cash - beginning of year — 59 100 — 159 Cash, cash equivalents, and restricted cash - end of period $ — $ 62 $ 101 $ — $ 163 Condensed Consolidating Statements of Cash Flows For the three months ended December 31, 2018 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows provided by operating activities $ 13 $ 29 $ 43 $ — $ 85 Cash flows from investing activities Additions to property, plant and equipment — (20) (7) — (27) Acquisitions, net of cash acquired — (8) (22) — (30) Other investing activities, net — 1 — — 1 Cash flows used in investing activities — (27) (29) — (56) Cash flows from financing activities Proceeds from borrowings, net of issuance costs 57 — 43 — 100 Repayments on borrowings (48) — (53) — (101) Cash dividends paid (20) — — — (20) Other financing activities (2) (1) (1) — (4) Cash flows used in financing activities (13) (1) (11) — (25) Effect of currency exchange rate changes on cash, cash equivalents, and restricted cash — — (1) — (1) Increase in cash, cash equivalents, and restricted cash — 1 2 — 3 Cash, cash equivalents, and restricted cash - beginning of year — 20 76 — 96 Cash, cash equivalents, and restricted cash - end of period $ — $ 21 $ 78 $ — $ 99

Basis of Presentation and Sig_3

Basis of Presentation and Significant Accounting Policies (Details) - ASU 2016-02 $ in Millions	Oct. 01, 2019USD ($)
Incremental Lease Assets	$ 219
Incremental Lease Liabilities	$ 214

Leasing - Schedule of Lease Bal

Leasing - Schedule of Lease Balances on the Balance Sheet (Details) - USD ($) $ in Millions	Dec. 31, 2019	Sep. 30, 2019
Leases [Abstract]
Operating lease assets	$ 253	$ 0
Finance lease assets	29
Amortization of finance lease assets	7
Total leased assets	275
Operating lease liabilities, current	30
Finance lease liabilities, current	1
Operating lease liabilities, noncurrent	224	$ 0
Finance lease liabilities, noncurrent	24
Total lease liabilities	$ 279

Leasing - Schedule of Lease Cos

Leasing - Schedule of Lease Costs (Details) $ in Millions	3 Months Ended
	Dec. 31, 2019USD ($)
Leases [Abstract]
Operating lease cost	$ 11
Finance lease costs
Amortization of lease assets	0
Interest on lease liabilities	1
Variable lease cost	1
Sublease income	(1)
Total lease cost	$ 12

Leasing - Schedule of Other Inf

Leasing - Schedule of Other Information Related to Leases (Details) $ in Millions	3 Months Ended
	Dec. 31, 2019USD ($)
Leases [Abstract]
Operating cash flows from operating leases (a)	$ 10
Operating cash flows from finance leases	1
Financing cash flow from finance leases	0
Leased assets obtained in exchange for operating leases	15
Leased assets obtained in exchange for finance leases	$ 0

Leasing - Schedule of Future Le

Leasing - Schedule of Future Lease Payments for Operating and Finance Leases After Adoption (Details) $ in Millions	Dec. 31, 2019USD ($)
Operating leases
2020	$ 30
2021	37
2022	35
2023	31
2024	28
Thereafter	154
Total future lease payments	315
Imputed interest	61
Present value of lease liabilities	254
Finance leases
2020	3
2021	4
2022	3
2023	4
2024	4
Thereafter	26
Total future lease payments	44
Imputed interest	19
Present value of lease liabilities	25
Undiscounted future lease payments for leases not yet commenced	$ 45
Term for leases that have not yet commenced	15 years

Leasing - Schedule of Weighted

Leasing - Schedule of Weighted Average Remaining Lease Term and Interest Rates (Details)	Dec. 31, 2019
Leases [Abstract]
Weighted average remaining lease term, operating leases	10 years
Weighted average remaining lease term, finance leases	10 years 8 months 12 days
Weighted average discount rate, operating leases	4.13%
Weighted average discount rate, finance leases	11.57%

Leasing - Future Minimum Rental

Leasing - Future Minimum Rental Payments Before Adoption (Details) $ in Millions	Sep. 30, 2019USD ($)
Operating Leases
2020	$ 36
2021	32
2022	29
2023	27
2024	23
Thereafter	120
Total future lease payments (a)	267
Capital Leases and Financing Obligations
2020	6
2021	7
2022	7
2023	7
2024	7
Thereafter	50
Total future lease payments	84
Imputed interest	29
Present value of lease liabilities	$ 55

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Assets and Liabilities at Fair Value (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions	Dec. 31, 2019	Sep. 30, 2019
Other noncurrent assets
Total assets at fair value	$ 84	$ 79
Accrued expenses and other liabilities
Total liabilities at fair value	1	0
Level 1
Other noncurrent assets
Non-qualified trust funds	20	20
Level 1 | Money market funds
Cash and cash equivalents
Cash and cash equivalents	1	0
Level 2
Prepaid expenses and other current assets
Currency derivatives	1	0
Accrued expenses and other liabilities
Currency derivatives	1	0
Level 2 | Time deposits
Cash and cash equivalents
Cash and cash equivalents	$ 62	$ 59

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2019	Sep. 30, 2019
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	$ 128	$ 111

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value of Debt (Details) - USD ($) $ in Millions	Dec. 31, 2019	Sep. 30, 2019
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Unamortized discount and issuance costs	$ 9	$ 9
Level 2 | Fair value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	805	797
Level 2 | Fair value | Senior Notes | 2024 Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	389	390
Level 2 | Fair value | Senior Notes | 2025 Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	416	407
Level 2 | Carrying value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	767	766
Unamortized discount and issuance costs	(8)	(9)
Level 2 | Carrying value | Senior Notes | 2024 Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	371	371
Unamortized discount and issuance costs	(4)	(4)
Level 2 | Carrying value | Senior Notes | 2025 Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	396	395
Unamortized discount and issuance costs	$ (4)	$ (5)

Acquisitions and Divestitures -

Acquisitions and Divestitures - Narrative (Details) $ in Millions	3 Months Ended
	Dec. 31, 2019USD ($)service_center_store	Dec. 31, 2018USD ($)service_center_store
Business Acquisition [Line Items]
Number of service center stores acquired | service_center_store	9	35
Consideration for acquisition | $	$ 6	$ 30
Finite-Lived Intangible Assets [Line Items]
Gain on sale | $	$ 0
Acquired Finite-Lived Intangible Assets [Line Items]
Business Disposition, Number of Service Centers Sold | service_center_store	6

Acquisitions and Divestitures_2

Acquisitions and Divestitures - Summary of Consideration Paid and Assets and Liabilities Acquired (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Business Acquisition [Line Items]
Property, plant and equipment	$ 0	$ 1
Goodwill	5	21
Net assets acquired	$ 6	30
Weighted average amortization period	6 years
Acquired Finite-Lived Intangible Assets [Line Items]
Proceeds from sale of operations	$ 3
Reacquired franchise rights
Business Acquisition [Line Items]
Intangible assets	0	3
Customer relationships
Business Acquisition [Line Items]
Intangible assets	0	1
Trademarks and trade names
Business Acquisition [Line Items]
Intangible assets	$ 1	$ 4

Goodwill and Other Intangible_2

Goodwill and Other Intangibles - Summary of Goodwill by Segment (Details) $ in Millions	3 Months Ended
	Dec. 31, 2019USD ($)
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 430
Acquisitions	5
Goodwill, ending balance	433
Currency translation	1
Goodwill, Written off Related to Sale of Business Unit	3
Quick Lubes
Goodwill [Roll Forward]
Goodwill, beginning balance	301
Acquisitions	5
Goodwill, ending balance	304
Currency translation	1
Goodwill, Written off Related to Sale of Business Unit	3
Core North America
Goodwill [Roll Forward]
Goodwill, beginning balance	89
Acquisitions	0
Goodwill, ending balance	89
Currency translation	0
Goodwill, Written off Related to Sale of Business Unit	0
International
Goodwill [Roll Forward]
Goodwill, beginning balance	40
Acquisitions	0
Goodwill, ending balance	40
Currency translation	0
Goodwill, Written off Related to Sale of Business Unit	$ 0

Restructuring Activities - Narr

Restructuring Activities - Narrative (Details) $ in Millions	3 Months Ended
	Dec. 31, 2019USD ($)
Restructuring Cost and Reserve [Line Items]
Cumulative Restructuring Charges	$ 13
Employee Termination Benefits
Restructuring Cost and Reserve [Line Items]
Expenses recognized during the period	$ 1

Restructuring Activities - Sche

Restructuring Activities - Schedule of Restructuring Activity (Details) - Employee Termination Benefits $ in Millions	3 Months Ended
	Dec. 31, 2019USD ($)
Restructuring Reserve [Roll Forward]
Balance at September 30, 2019	$ 9
Expenses recognized during the period	1
Payments	(2)
Balance at December 31, 2019	$ 8

Debt - Schedule of Short-Term B

Debt - Schedule of Short-Term Borrowings and Long Term Debt (Details) - USD ($)	Dec. 31, 2019	Sep. 30, 2019
Debt Instrument [Line Items]
Other	$ (8,000,000)	$ (8,000,000)
Total debt	1,342,000,000	1,342,000,000
Current portion of long-term debt	22,000,000	15,000,000
Long-term debt	1,320,000,000	1,327,000,000
Debt issuance cost discounts	9,000,000	9,000,000
Debt acquired through acquisitions	1,000,000	1,000,000
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 Loan | Line of Credit | Secured Debt
Debt Instrument [Line Items]
Debt gross	575,000,000	575,000,000
Trade Receivables Facility | Line of Credit | Secured Debt
Debt Instrument [Line Items]
Long-term debt	0	0
Original principal amount of debt		$ 175,000,000
Total borrowing capacity remaining	$ 130,000,000

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) - USD ($)	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Sep. 30, 2019	Apr. 12, 2019
2019 Revolver
Debt Instrument [Line Items]
Letters of credit outstanding	$ 9,000,000
Secured Debt | 2019 Term Loans | Line of Credit
Debt Instrument [Line Items]
Original principal amount of debt				$ 575,000,000
Secured Debt | Trade Receivables Facility | Line of Credit
Debt Instrument [Line Items]
Original principal amount of debt			$ 175,000,000
Revolvers | 2019 Revolver | Line of Credit
Debt Instrument [Line Items]
Original principal amount of debt				$ 475,000,000
Borrowings from revolving credit facility	0
Repayments of long-term debt	0	$ 0
Total borrowing capacity remaining	$ 466,000,000

Debt - Trade Receivables Facili

Debt - Trade Receivables Facility (Details) - USD ($)	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Sep. 30, 2019
Debt Instrument [Line Items]
Proceeds from borrowings	$ 0	$ 100,000,000
Repayments of long-term debt		$ 101,000,000
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		0
Line of Credit | Trade Receivables Facility | Secured Debt | Financing Subsidiary
Debt Instrument [Line Items]
Accounts receivable pledged as collateral	$ 220,000,000		$ 259,000,000

Income Taxes - Schedule of Inco

Income Taxes - Schedule of Income Tax Expense and Effective Tax Rate (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Income tax expense	$ 24	$ 19
Effective tax rate percentage	24.70%	26.40%

Employee Benefit Plans - Compon

Employee Benefit Plans - Components of Pension and Other Postretirement Benefit Income (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Pension benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 1	$ 0
Interest cost	16	20
Expected return on plan assets	(22)	(20)
Amortization of prior service credit	0	0
Net periodic benefit income	(5)	0
Other postretirement benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	0	0
Interest cost	0	1
Expected return on plan assets	0	0
Amortization of prior service credit	(3)	(3)
Net periodic benefit income	$ (3)	$ (2)

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Numerator
Net income	$ 73	$ 53
Denominator
Weighted-average common shares outstanding (shares)	189	188
Effect of potentially dilutive securities (shares)	0	1
Weighted average diluted shares outstanding (shares)	189	189
Earnings per share
Basic (usd per share)	$ 0.39	$ 0.28
Diluted (usd per share)	$ 0.39	$ 0.28
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)	Dec. 31, 2019numberOfCountries
Non-US
Segment Reporting Information [Line Items]
Number of countries where our products are sold	140

Reportable Segment Informatio_3

Reportable Segment Information - Sales and Operating Income by Reportable Segment (Details) $ in Millions	3 Months Ended
	Dec. 31, 2019USD ($)numberOfCountriesnumberOfSegments	Dec. 31, 2018USD ($)
Segment Reporting Information [Line Items]
Sales	$ 607	$ 557
Number of reportable segments | numberOfSegments	3
Operating income	$ 104	87
Non-US
Segment Reporting Information [Line Items]
Number of countries where our products are sold | numberOfCountries	140
Quick Lubes | North America
Segment Reporting Information [Line Items]
Sales	$ 218	189
Quick Lubes | EMEA [Member]
Segment Reporting Information [Line Items]
Sales	0	0
Quick Lubes | Asia Pacific [Member]
Segment Reporting Information [Line Items]
Sales	0	0
Quick Lubes | Latin America
Segment Reporting Information [Line Items]
Sales	0	0
Core North America
Segment Reporting Information [Line Items]
Sales	248	232
Core North America | EMEA [Member]
Segment Reporting Information [Line Items]
Sales	0	0
Core North America | Asia Pacific [Member]
Segment Reporting Information [Line Items]
Sales	0	0
Core North America | Latin America
Segment Reporting Information [Line Items]
Sales	0	0
International
Segment Reporting Information [Line Items]
Sales	141	136
International | North America
Segment Reporting Information [Line Items]
Sales	0	0
North America
Segment Reporting Information [Line Items]
Sales	466	421
Latin America
Segment Reporting Information [Line Items]
Sales	24	25
Asia Pacific [Member]
Segment Reporting Information [Line Items]
Sales	70	67
EMEA [Member]
Segment Reporting Information [Line Items]
Sales	47	44
Operating Segments
Segment Reporting Information [Line Items]
Operating income	104	87
Operating Segments | Quick Lubes
Segment Reporting Information [Line Items]
Sales	218	189
Operating income	38	38
Operating Segments | Core North America
Segment Reporting Information [Line Items]
Sales	248	232
Operating income	46	31
Operating Segments | International
Segment Reporting Information [Line Items]
Sales	141	136
Operating income	20	18
Unallocated and Other
Segment Reporting Information [Line Items]
Operating income	0	0
Company-Owned [Member] | Quick Lubes
Segment Reporting Information [Line Items]
Sales	142	124
Non-Company Owned [Member] | Quick Lubes
Segment Reporting Information [Line Items]
Sales	76	65
Retail [Member] | Core North America
Segment Reporting Information [Line Items]
Sales	137	116
Installer And Other [Member] | Core North America
Segment Reporting Information [Line Items]
Sales	$ 111	$ 116

Supplemental Financial Inform_3

Supplemental Financial Information - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions	Dec. 31, 2019	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018
Supplemental Financial Information [Abstract]
Restricted cash	$ 1	$ 0	$ 0
Cash and cash equivalents	162	159	99
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	$ 163	$ 159	$ 99	$ 96

Supplemental Financial Inform_4

Supplemental Financial Information - Summary of Accounts Receivable (Details) - USD ($)	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Sep. 30, 2019
Supplemental Financial Information [Abstract]
Trade	$ 389,000,000		$ 392,000,000
Other	13,000,000		15,000,000
Trade	402,000,000		407,000,000
Accounts Receivable, Allowance for Credit Loss, Current	7,000,000		6,000,000
Accounts receivable, net	395,000,000		$ 401,000,000
Accounts receivable sold to financial institutions	$ 0	$ 28,000,000

Supplemental Financial Inform_5

Supplemental Financial Information - Narrative (Details) - USD ($)	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Supplemental Financial Information [Abstract]
Accounts receivable sold to financial institutions	$ 0	$ 28,000,000

Supplemental Financial Inform_6

Supplemental Financial Information - Inventory (Details) - USD ($) $ in Millions	Dec. 31, 2019	Sep. 30, 2019
Supplemental Financial Information [Abstract]
Finished products	$ 197	$ 203
Raw materials, supplies and work in process	37	32
Inventory, LIFO Reserve	40	41
Inventories, net	$ 194	$ 194

Supplemental Financial Inform_7

Supplemental Financial Information - Revenue Recognition and Deferred Revenue (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Disaggregation of Revenue [Line Items]
Sales	$ 607	$ 557
Sales at a point in time
Disaggregation of Revenue [Line Items]
Sales	596	547
Franchised revenues transferred over time
Disaggregation of Revenue [Line Items]
Sales	$ 11	$ 10

Guarantor Financial Informati_3

Guarantor Financial Information - Condensed Consolidating Statements of Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Net Income (Loss) Attributable to Parent [Abstract]
Sales	$ 607	$ 557
Cost of sales	396	374
Gross profit	211	183
Selling, general and administrative expenses	117	105
Net legacy and separation-related income	(1)
Equity and other (income) expenses, net	(9)	(9)
Operating income	104	87
Net pension and other postretirement plan income	(9)	(2)
Net interest and other financing expenses	16	17
Income before income taxes	97	72
Income tax (benefit) expense	24	19
Equity in net income of subsidiaries	0	0
Net income	73	53
Comprehensive income	79	47
Eliminations
Net Income (Loss) Attributable to Parent [Abstract]
Sales	(13)	(15)
Cost of sales	(13)	(15)
Gross profit	0	0
Selling, general and administrative expenses	0	0
Net legacy and separation-related income	0
Equity and other (income) expenses, net	0	0
Operating income	0	0
Net pension and other postretirement plan income	0	0
Net interest and other financing expenses	0	0
Income before income taxes	0	0
Income tax (benefit) expense	0	0
Equity in net income of subsidiaries	93	72
Net income	(93)	(72)
Comprehensive income	(104)	(62)
Valvoline Inc. (Parent Issuer) | Reportable Legal Entities
Net Income (Loss) Attributable to Parent [Abstract]
Sales	0	0
Cost of sales	0	0
Gross profit	0	0
Selling, general and administrative expenses	4	3
Net legacy and separation-related income	(1)
Equity and other (income) expenses, net	0	0
Operating income	(3)	(3)
Net pension and other postretirement plan income	0	0
Net interest and other financing expenses	15	15
Income before income taxes	(18)	(18)
Income tax (benefit) expense	(6)	(5)
Equity in net income of subsidiaries	(85)	(66)
Net income	73	53
Comprehensive income	79	47
Guarantor Subsidiaries | Reportable Legal Entities
Net Income (Loss) Attributable to Parent [Abstract]
Sales	480	440
Cost of sales	309	293
Gross profit	171	147
Selling, general and administrative expenses	88	81
Net legacy and separation-related income	0
Equity and other (income) expenses, net	(13)	(13)
Operating income	96	79
Net pension and other postretirement plan income	(9)	(2)
Net interest and other financing expenses	1	1
Income before income taxes	104	80
Income tax (benefit) expense	27	20
Equity in net income of subsidiaries	(8)	(6)
Net income	85	66
Comprehensive income	89	60
Non-Guarantor Subsidiaries | Reportable Legal Entities
Net Income (Loss) Attributable to Parent [Abstract]
Sales	140	132
Cost of sales	100	96
Gross profit	40	36
Selling, general and administrative expenses	25	21
Net legacy and separation-related income	0
Equity and other (income) expenses, net	4	4
Operating income	11	11
Net pension and other postretirement plan income	0	0
Net interest and other financing expenses	0	1
Income before income taxes	11	10
Income tax (benefit) expense	3	4
Equity in net income of subsidiaries	0	0
Net income	8	6
Comprehensive income	$ 15	$ 2

Guarantor Financial Informati_4

Guarantor Financial Information - Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions	Dec. 31, 2019	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018
Assets, Current [Abstract]
Cash and cash equivalents	$ 162	$ 159	$ 99
Accounts receivable, net	395	401
Inventories, net	194	194
Prepaid expenses and other current assets	43	43
Total current assets	794	797
Noncurrent assets
Property, plant and equipment, net	479	498
Operating lease assets	253	0
Goodwill and intangibles, net	507	504
Equity method investments	39	34
Investment in subsidiaries	0	0
Deferred income taxes	116	123
Other noncurrent assets	109	108
Total noncurrent assets	1,503	1,267
Total assets	2,297	2,064
Current liabilities
Current portion of long-term debt	22	15
Trade and other payables	153	171
Accrued expenses and other liabilities	246	237
Total current liabilities	421	423
Noncurrent liabilities
Long-term debt	1,320	1,327
Employee benefit obligations	376	387
Operating lease liabilities, noncurrent	224	0
Other noncurrent liabilities	152	185
Total noncurrent liabilities	2,072	1,899
Commitments and contingencies
Stockholders’ (deficit) equity	(196)	(258)	$ (343)	$ (358)
Total liabilities and stockholders’ deficit	2,297	2,064
Present value of lease liabilities	254
Eliminations
Assets, Current [Abstract]
Cash and cash equivalents	0	0
Accounts receivable, net	(150)	(118)
Inventories, net	0	0
Prepaid expenses and other current assets	0	0
Total current assets	(150)	(118)
Noncurrent assets
Property, plant and equipment, net	0	0
Operating lease assets	0
Goodwill and intangibles, net	0	0
Equity method investments	0	0
Investment in subsidiaries	(1,770)	(1,703)
Deferred income taxes	0	0
Other noncurrent assets	0	0
Total noncurrent assets	(1,770)	(1,703)
Total assets	(1,920)	(1,821)
Current liabilities
Current portion of long-term debt	0	0
Trade and other payables	(150)	(118)
Accrued expenses and other liabilities	0	0
Total current liabilities	(150)	(118)
Noncurrent liabilities
Long-term debt	0	0
Employee benefit obligations	0	0
Operating lease liabilities, noncurrent	0
Other noncurrent liabilities	0	0
Total noncurrent liabilities	0	0
Stockholders’ (deficit) equity	(1,770)	(1,703)
Total liabilities and stockholders’ deficit	(1,920)	(1,821)
Valvoline Inc. (Parent Issuer) | Reportable Legal Entities
Assets, Current [Abstract]
Cash and cash equivalents	0	0
Accounts receivable, net	0	0
Inventories, net	0	0
Prepaid expenses and other current assets	1	0
Total current assets	1	0
Noncurrent assets
Property, plant and equipment, net	0	0
Operating lease assets	0
Goodwill and intangibles, net	0	0
Equity method investments	0	0
Investment in subsidiaries	1,247	1,157
Deferred income taxes	55	48
Other noncurrent assets	3	3
Total noncurrent assets	1,305	1,208
Total assets	1,306	1,208
Current liabilities
Current portion of long-term debt	22	15
Trade and other payables	109	80
Accrued expenses and other liabilities	18	9
Total current liabilities	149	104
Noncurrent liabilities
Long-term debt	1,319	1,326
Employee benefit obligations	0	0
Operating lease liabilities, noncurrent	0
Other noncurrent liabilities	34	36
Total noncurrent liabilities	1,353	1,362
Stockholders’ (deficit) equity	(196)	(258)
Total liabilities and stockholders’ deficit	1,306	1,208
Guarantor Subsidiaries | Reportable Legal Entities
Assets, Current [Abstract]
Cash and cash equivalents	62	59
Accounts receivable, net	245	181
Inventories, net	108	110
Prepaid expenses and other current assets	32	35
Total current assets	447	385
Noncurrent assets
Property, plant and equipment, net	407	431
Operating lease assets	211
Goodwill and intangibles, net	425	423
Equity method investments	39
Investment in subsidiaries	523	546
Deferred income taxes	47	61
Other noncurrent assets	97	96
Total noncurrent assets	1,749	1,591
Total assets	2,196	1,976
Current liabilities
Current portion of long-term debt	0	0
Trade and other payables	96	127
Accrued expenses and other liabilities	182	175
Total current liabilities	278	302
Noncurrent liabilities
Long-term debt	1	1
Employee benefit obligations	359	369
Operating lease liabilities, noncurrent	195
Other noncurrent liabilities	116	147
Total noncurrent liabilities	671	517
Stockholders’ (deficit) equity	1,247	1,157
Total liabilities and stockholders’ deficit	2,196	1,976
Non-Guarantor Subsidiaries | Reportable Legal Entities
Assets, Current [Abstract]
Cash and cash equivalents	100	100
Accounts receivable, net	300	338
Inventories, net	86	84
Prepaid expenses and other current assets	10	8
Total current assets	496	530
Noncurrent assets
Property, plant and equipment, net	72	67
Operating lease assets	42
Goodwill and intangibles, net	82	81
Equity method investments	0	0
Investment in subsidiaries	0	0
Deferred income taxes	14	14
Other noncurrent assets	9	9
Total noncurrent assets	219	171
Total assets	715	701
Current liabilities
Current portion of long-term debt	0	0
Trade and other payables	98	82
Accrued expenses and other liabilities	46	53
Total current liabilities	144	135
Noncurrent liabilities
Long-term debt	0	0
Employee benefit obligations	17	18
Operating lease liabilities, noncurrent	29
Other noncurrent liabilities	2	2
Total noncurrent liabilities	48	20
Stockholders’ (deficit) equity	523	546
Total liabilities and stockholders’ deficit	$ 715	$ 701

Guarantor Financial Informati_5

Guarantor Financial Information - Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Condensed Cash Flow Statements, Captions [Line Items]
Cash flows provided by operating activities	$ 59	$ 85
Cash flows from investing activities
Additions to property, plant and equipment	(28)	(27)
Acquisitions, net of cash acquired	(6)	(30)
Other investing activities, net	(1)	1
Total cash used in investing activities	(35)	(56)
Cash flows from financing activities
Proceeds from borrowings, net of issuance costs	0	100
Repayments on borrowings		(101)
Cash dividends paid	(21)	(20)
Other financing activities	(2)	(4)
Total cash used in financing activities	(23)	(25)
Effect of currency exchange rate changes on cash, cash equivalents, and restricted cash	3	(1)
Increase (decrease) in cash, cash equivalents, and restricted cash	4	3
Cash, cash equivalents, and restricted cash - beginning of period	159	96
Cash, cash equivalents, and restricted cash - end of period	163	99
Reportable Legal Entities | Valvoline Inc. (Parent Issuer)
Condensed Cash Flow Statements, Captions [Line Items]
Cash flows provided by operating activities	23	13
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
Total cash used in investing activities	0	0
Cash flows from financing activities
Proceeds from borrowings, net of issuance costs		57
Repayments on borrowings		(48)
Cash dividends paid	(21)	(20)
Other financing activities	(2)	(2)
Total cash used in financing activities	(23)	(13)
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 provided by operating activities	31	29
Cash flows from investing activities
Additions to property, plant and equipment	(21)	(20)
Acquisitions, net of cash acquired	(6)	(8)
Other investing activities, net	(1)	1
Total cash used in investing activities	(28)	(27)
Cash flows from financing activities
Proceeds from borrowings, net of issuance costs		0
Repayments on borrowings		0
Cash dividends paid	0	0
Other financing activities	0	(1)
Total cash used in financing activities	0	(1)
Effect of currency exchange rate changes on cash, cash equivalents, and restricted cash	0	0
Increase (decrease) in cash, cash equivalents, and restricted cash	3	1
Cash, cash equivalents, and restricted cash - beginning of period	59	20
Cash, cash equivalents, and restricted cash - end of period	62	21
Reportable Legal Entities | Non-Guarantor Subsidiaries
Condensed Cash Flow Statements, Captions [Line Items]
Cash flows provided by operating activities	5	43
Cash flows from investing activities
Additions to property, plant and equipment	(7)	(7)
Acquisitions, net of cash acquired	0	(22)
Other investing activities, net	0	0
Total cash used in investing activities	(7)	(29)
Cash flows from financing activities
Proceeds from borrowings, net of issuance costs		43
Repayments on borrowings		(53)
Cash dividends paid	0	0
Other financing activities	0	(1)
Total cash used in financing activities	0	(11)
Effect of currency exchange rate changes on cash, cash equivalents, and restricted cash	3	(1)
Increase (decrease) in cash, cash equivalents, and restricted cash	1	2
Cash, cash equivalents, and restricted cash - beginning of period	100	76
Cash, cash equivalents, and restricted cash - end of period	101	78
Eliminations
Condensed Cash Flow Statements, Captions [Line Items]
Cash flows 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
Total cash used in investing activities	0	0
Cash flows from financing activities
Proceeds from borrowings, net of issuance costs		0
Repayments on borrowings		0
Cash dividends paid	0	0
Other financing activities	0	0
Total cash used in financing activities	0	0
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)	Jan. 29, 2020$ / shares
Subsequent Events [Abstract]
Dividend per share (usd per share)	$ 0.113

Uncategorized Items - vvv-20191

Label	Element	Value
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)