Valvoline (VVV) 10-Q 4 Aug 20 2020 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Jun. 30, 2020	Jul. 31, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2020
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		185,035,286
Entity Central Index Key	0001674910
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Income - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Net Income (Loss) Attributable to Parent [Abstract]
Sales	$ 516	$ 613	$ 1,701	$ 1,761
Cost of sales	329	406	1,096	1,168
Gross profit	187	207	605	593
Selling, general and administrative expenses	106	116	319	334
Net legacy and separation-related expenses	1	0	0	3
Equity and other income, net	(8)	(11)	(23)	(29)
Operating income	88	102	309	285
Net pension and other postretirement plan income	(9)	(2)	(27)	(7)
Net interest and other financing expenses	19	19	73	55
Income before income taxes	78	85	263	237
Income tax expense	19	20	68	56
Net income	$ 59	$ 65	$ 195	$ 181
NET EARNINGS PER SHARE
Basic (usd per share)	$ 0.32	$ 0.34	$ 1.04	$ 0.96
Diluted (usd per share)	$ 0.32	$ 0.34	$ 1.04	$ 0.96
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic (shares)	186	189	187	189
Diluted (shares)	186	189	188	189
COMPREHENSIVE INCOME
Net income	$ 59	$ 65	$ 195	$ 181
Other comprehensive income (loss), net of tax
Currency translation adjustments	10	1	(3)	(1)
Amortization of pension and other postretirement plan prior service credit	(3)	(3)	(7)	(7)
Other comprehensive income (loss)	7	(2)	(10)	(8)
Comprehensive income	$ 66	$ 63	$ 185	$ 173

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Jun. 30, 2020	Sep. 30, 2019
Assets, Current [Abstract]
Cash and cash equivalents	$ 751	$ 159
Receivables, Net, Current	396	401
Inventories, net	189	194
Prepaid expenses and other current assets	43	43
Total current assets	1,379	797
Noncurrent assets
Property, plant and equipment, net	559	498
Operating lease assets	261	0
Goodwill and intangibles, net	510	504
Equity method investments	39	34
Deferred income taxes	82	123
Other noncurrent assets	133	108
Total noncurrent assets	1,584	1,267
Total assets	2,963	2,064
Current liabilities
Current portion of long-term debt	0	15
Trade and other payables	178	171
Accrued expenses and other liabilities	254	237
Total current liabilities	432	423
Noncurrent liabilities
Long-term debt	1,953	1,327
Employee benefit obligations	350	387
Operating lease liabilities, noncurrent	231	0
Other noncurrent liabilities	185	185
Total noncurrent liabilities	2,719	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; 185 and 188 shares issued and outstanding at June 30, 2020 and September 30, 2019, respectively	2	2
Paid-in capital	20	13
Retained deficit	(211)	(284)
Accumulated other comprehensive income	1	11
Total stockholders’ deficit	(188)	(258)
Total liabilities and stockholders’ deficit	$ 2,963	$ 2,064

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2020	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)	185,000,000	188,000,000
Common stock outstanding (shares)	185,000,000	188,000,000

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Deficit - USD ($) shares in Millions, $ in Millions	Total	Cumulative Effect, Period of Adoption, Adjustment	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Retained Earnings [Member]Cumulative Effect, Period of Adoption, Adjustment	AOCI Attributable to Parent [Member]
Common stock outstanding, at beginning of period (shares) at Sep. 30, 2018			188
Balance at beginning of period at Sep. 30, 2018	$ (358)	$ (13)	$ 2	$ 7	$ (399)	$ (13)	$ 32
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	53				53
Dividends paid	(20)				(20)
Stock-based compensation, net of issuances	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
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends paid per common share (usd per share)	$ 0.106
Common stock outstanding, at beginning of period (shares) at Sep. 30, 2018			188
Balance at beginning of period at Sep. 30, 2018	$ (358)	(13)	$ 2	7	(399)	(13)	32
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	181
Repurchases of common stock	0
Currency translation adjustments	(1)
Amortization of pension and other postretirement prior service credits in income, net of tax	(7)
Common stock outstanding, at end of period (shares) at Jun. 30, 2019			188
Balance at end of period at Jun. 30, 2019	(252)		$ 2	13	(291)		24
Common stock outstanding, at beginning of period (shares) at Dec. 31, 2018			188
Balance at beginning of period at Dec. 31, 2018	(343)		$ 2	8	(379)		26
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	63				63
Dividends paid	(20)				(20)
Stock-based compensation, net of issuances	2			2	0
Currency translation adjustments	2						2
Amortization of pension and other postretirement prior service credits in income, net of tax	(2)						(2)
Balance at end of period at Mar. 31, 2019	$ (298)		$ 2	10	(336)		26
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends paid per common share (usd per share)	$ 0.106
Net income	$ 65				65
Dividends paid	(20)				(20)
Stock-based compensation, net of issuances	3			3
Currency translation adjustments	1						1
Amortization of pension and other postretirement prior service credits in income, net of tax	(3)						(3)
Common stock outstanding, at end of period (shares) at Jun. 30, 2019			188
Balance at end of period at Jun. 30, 2019	$ (252)		$ 2	13	(291)		24
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends paid per common share (usd per share)	$ 0.106
Common stock outstanding, at beginning of period (shares) at Sep. 30, 2019	188		188
Balance at beginning of period at Sep. 30, 2019	$ (258)	1	$ 2	13	(284)	1	11
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	73				73
Dividends paid	(21)				(21)
Stock-based compensation, net of issuances	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
Balance at end of period at Dec. 31, 2019	$ (196)		$ 2	16	(231)		17
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends paid per common share (usd per share)	$ 0.113
Common stock outstanding, at beginning of period (shares) at Sep. 30, 2019	188		188
Balance at beginning of period at Sep. 30, 2019	$ (258)	$ 1	$ 2	13	(284)	$ 1	11
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	195
Repurchases of common stock	(60)
Currency translation adjustments	(3)
Amortization of pension and other postretirement prior service credits in income, net of tax	$ (7)
Common stock outstanding, at end of period (shares) at Jun. 30, 2020	185		185
Balance at end of period at Jun. 30, 2020	$ (188)		$ 2	20	(211)		1
Common stock outstanding, at beginning of period (shares) at Dec. 31, 2019			188
Balance at beginning of period at Dec. 31, 2019	(196)		$ 2	16	(231)		17
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	63				63
Dividends paid	(21)				(21)
Repurchases of common stock (in shares)			(3)
Repurchases of common stock	(60)				(60)
Currency translation adjustments	(21)						(21)
Amortization of pension and other postretirement prior service credits in income, net of tax	(2)						(2)
Common stock outstanding, at end of period (shares) at Mar. 31, 2020			185
Balance at end of period at Mar. 31, 2020	$ (237)		$ 2	16	(249)		(6)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends paid per common share (usd per share)	$ 0.113
Net income	$ 59				59
Dividends paid	(21)				(21)
Stock-based compensation, net of issuances	4			4
Currency translation adjustments	10						10
Amortization of pension and other postretirement prior service credits in income, net of tax	$ (3)						(3)
Common stock outstanding, at end of period (shares) at Jun. 30, 2020	185		185
Balance at end of period at Jun. 30, 2020	$ (188)		$ 2	$ 20	$ (211)		$ 1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends paid per common share (usd per share)	$ 0.113

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Deficit (Parenthetical) - $ / shares	3 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018
Statement of Stockholders' Equity [Abstract]
Dividends paid per common share (usd per share)	$ 0.113	$ 0.113	$ 0.113	$ 0.106	$ 0.106	$ 0.106

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Cash flows from operating activities
Net income	$ 195	$ 181
Adjustments to reconcile net income to cash flows from operating activities
Gain (loss) on extinguishment of debt	19	0
Depreciation and amortization	48	43
Equity income from unconsolidated affiliates, net of distributions	(3)	(4)
Pension contributions	(9)	(7)
Stock-based compensation expense	8	8
Other, net	4	2
Change in assets and liabilities
Increase (Decrease) in Receivables	(13)	48
Inventories	3	(11)
Payables and accrued liabilities	(10)	34
Other assets and liabilities	3	16
Total cash provided by operating activities	271	214
Cash flows from investing activities
Additions to property, plant and equipment	(94)	(73)
Notes receivable, net	(31)	(2)
Acquisitions of business	(18)	(50)
Other investing activities, net	0	1
Total cash used in investing activities	(143)	(124)
Cash flows from financing activities
Proceeds from borrowings	1,547	745
Payments of debt issuance costs and discounts	(16)	(2)
Repayments on borrowings	(925)	(727)
Repurchases of common stock	(60)	0
Payment for debt extinguishment or debt prepayment cost	15	0
Cash dividends paid	(63)	(60)
Other financing activities	(3)	(5)
Total cash provided by (used in) financing activities	465	(49)
Effect of currency exchange rate changes on cash, cash equivalents, and restricted cash	(1)	0
Increase (decrease) in cash, cash equivalents, and restricted cash	592	41
Cash, cash equivalents, and restricted cash - beginning of period	159	96
Cash, cash equivalents, and restricted cash - end of period	$ 751	$ 137

Basis of Presentation and Signi

Basis of Presentation and Significant Accounting Policies	9 Months Ended
	Jun. 30, 2020
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. Certain prior period amounts have been reclassified to conform to the current presentation. The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make use of estimates and assumptions that affect the reported amounts and disclosures. Actual results may vary from these estimates. In the opinion of management, 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, particularly in light of the novel coronavirus ("COVID-19") global pandemic and its effects on Valvoline and global economies. In late December 2019, COVID-19 was identified in Wuhan, China and since that time it has continued to spread globally, including to the United States, leading the World Health Organization to declare a global pandemic and recommend containment and mitigation actions worldwide in March 2020. Since March 31, 2020, the COVID-19 pandemic has continued, and various governments have issued or extended shelter-in-place orders. As of the date of this filing, restrictions are in various phases of being reduced and re-implemented with the resulting impacts being monitored. Valvoline has substantially maintained its operations during the pandemic, and precautionary measures have been taken to protect the Company's employees and customers, maintain liquidity and manage the impacts of reduced volumes. The COVID-19 pandemic adversely affected Valvoline's results of operations for the three and nine months ended June 30, 2020. Adverse impacts from COVID-19 are expected in future periods, and the extent of certain future impacts cannot be reasonably estimated at this time due to numerous uncertainties, including the duration and severity of the pandemic. 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. In August 2017, the FASB issued accounting guidance, which reduced the complexity of and simplified the application of hedge accounting. The guidance refines and expands hedge accounting for both financial and nonfinancial risk components, eliminates the need to separately measure and report hedge ineffectiveness, and aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The guidance also eases documentation and assessment requirements and modifies certain disclosure requirements. This guidance did not have a material impact on the Company’s condensed consolidated financial statements in the nine months ended June 30, 2020 as Valvoline did not have any existing hedging relationships at adoption on October 1, 2019. Refer to Note 3 for additional information regarding the interest rate swap agreements the Company entered into during the third quarter of fiscal 2020. 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 about significant estimates and credit quality and will become effective for Valvoline on October 1, 2020. The Company is evaluating the effects of adopting this new accounting guidance, including developing models to estimate expected credit losses, assessing appropriate assumptions, designing changes to its related processes, and evaluating the effects on the condensed consolidated financial statements, which are not currently expected to be material. The impact of adoption will be largely dependent on the credit quality of the Company's receivables outstanding at adoption. The Company evaluates creditworthiness when negotiating contracts, and as the Company's receivables are generally short-term in nature, the timing and amount of credit loss recognized under existing guidance and the new guidance is not expected to differ materially. 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	9 Months Ended
	Jun. 30, 2020
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 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 June 30, 2020 Assets Operating lease assets Operating lease assets $ 261 Finance lease assets Property, plant and equipment, net 66 Amortization of finance lease assets Property, plant and equipment, net (8) Total leased assets $ 319 Liabilities Current: Operating lease liabilities Accrued expenses and other liabilities $ 32 Finance lease liabilities Accrued expenses and other liabilities 3 Noncurrent: Operating lease liabilities Operating lease liabilities 231 Finance lease liabilities Other noncurrent liabilities 60 Total lease liabilities $ 326 The following table presents the components of total lease costs: (In millions) Location in Condensed Consolidated Statements of Comprehensive Income Three months ended June 30, 2020 Nine months ended June 30, 2020 Operating lease cost Cost of sales and Selling, general and administrative expenses (a) $ 11 $ 33 Finance lease costs Amortization of lease assets Cost of sales (a) 1 2 Interest on lease liabilities Net interest and other financing expenses 1 3 Variable lease cost Cost of sales and Selling, general and administrative expenses (a) 1 3 Sublease income Equity and other income, net (1) (4) Total lease cost $ 13 $ 37 (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 June 30, 2020 Nine months ended June 30, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases (a) $ 11 $ 32 Operating cash flows from finance leases $ — $ 2 Financing cash flow from finance leases $ 1 $ 1 Lease assets obtained in exchange for lease obligations: Operating leases $ 14 $ 42 Finance leases $ 20 $ 38 (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 June 30, 2020: (In millions) Operating leases Finance leases Remainder of 2020 $ 11 $ 1 2021 41 7 2022 39 7 2023 35 7 2024 31 7 Thereafter 166 67 Total future lease payments 323 96 Imputed interest 60 33 Present value of lease liabilities $ 263 $ 63 As of June 30, 2020, Valvoline has additional leases primarily related to its quick lube service center stores that have not yet commenced with approximately $52 million in undiscounted future lease payments that are not included in the table above. These leases are expected to commence over the next twelve months 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 June 30, 2020: Operating Leases Financing Leases Weighted average remaining lease term (in years) 9.7 13.3 Weighted average discount rate 4.09 % 7.45 %
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 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 June 30, 2020 Assets Operating lease assets Operating lease assets $ 261 Finance lease assets Property, plant and equipment, net 66 Amortization of finance lease assets Property, plant and equipment, net (8) Total leased assets $ 319 Liabilities Current: Operating lease liabilities Accrued expenses and other liabilities $ 32 Finance lease liabilities Accrued expenses and other liabilities 3 Noncurrent: Operating lease liabilities Operating lease liabilities 231 Finance lease liabilities Other noncurrent liabilities 60 Total lease liabilities $ 326 The following table presents the components of total lease costs: (In millions) Location in Condensed Consolidated Statements of Comprehensive Income Three months ended June 30, 2020 Nine months ended June 30, 2020 Operating lease cost Cost of sales and Selling, general and administrative expenses (a) $ 11 $ 33 Finance lease costs Amortization of lease assets Cost of sales (a) 1 2 Interest on lease liabilities Net interest and other financing expenses 1 3 Variable lease cost Cost of sales and Selling, general and administrative expenses (a) 1 3 Sublease income Equity and other income, net (1) (4) Total lease cost $ 13 $ 37 (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 June 30, 2020 Nine months ended June 30, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases (a) $ 11 $ 32 Operating cash flows from finance leases $ — $ 2 Financing cash flow from finance leases $ 1 $ 1 Lease assets obtained in exchange for lease obligations: Operating leases $ 14 $ 42 Finance leases $ 20 $ 38 (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 June 30, 2020: (In millions) Operating leases Finance leases Remainder of 2020 $ 11 $ 1 2021 41 7 2022 39 7 2023 35 7 2024 31 7 Thereafter 166 67 Total future lease payments 323 96 Imputed interest 60 33 Present value of lease liabilities $ 263 $ 63 As of June 30, 2020, Valvoline has additional leases primarily related to its quick lube service center stores that have not yet commenced with approximately $52 million in undiscounted future lease payments that are not included in the table above. These leases are expected to commence over the next twelve months 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 June 30, 2020: Operating Leases Financing Leases Weighted average remaining lease term (in years) 9.7 13.3 Weighted average discount rate 4.09 % 7.45 %

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Jun. 30, 2020
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 June 30 September 30 Cash and cash equivalents Money market funds Level 1 $ 294 $ — Time deposits Level 2 159 59 Prepaid expenses and other current assets Currency derivatives (a) Level 2 3 — Other noncurrent assets Non-qualified trust funds Level 1 17 20 Total assets at fair value $ 473 $ 79 Accrued expenses and other liabilities Currency derivatives (a) Level 2 $ 3 $ — Interest rate swap agreements (b) Level 2 — — Total liabilities at fair value $ 3 $ — (a) The Company had outstanding contracts with notional values of $125 million and $111 million as of June 30, 2020 and September 30, 2019, respectively. (b) As of June 30, 2020, the Company’s interest rate swap agreements were in net liability positions with a combined fair value less than $1 million. There have been no changes in the nature of inputs or valuation approaches relative to the Company's financial assets and liabilities that are accounted for at fair value on a recurring basis from those at September 30, 2019, other than the agreements noted below, which were entered into during the three and nine months ended June 30, 2020. There were no material gains or losses recognized in earnings during the three and nine months ended June 30, 2020 or 2019 related to these assets and liabilities. Interest rate swap agreements In June 2020, the Company entered into two interest rate swap agreements with three-year maturities to exchange interest rate payments on $175 million of variable rate term loan borrowings to fixed interest rates. The interest rate swap agreements had fair values of zero at inception and have been designated as cash flow hedges with the unrealized gains or losses recorded in Accumulated other comprehensive income and reclassified into earnings within Net interest and other financing expenses as the underlying payment transactions occur. The Company expects these hedges to be highly effective and based on interest rates as of June 30, 2020, estimates that there will not be material reclassifications into earnings over the next twelve months. The fair value of interest rate swap agreements represents the difference in the present value of cash flows calculated at the contracted interest rates and at current market interest rates at the end of the period. The Company utilizes Level 2 observable inputs such as interest rate yield curves to estimate fair value for the interest rate swap agreements. Long-term debt The fair values of the Company’s outstanding fixed rate senior notes shown in the table below are based on recent trading values, which are considered Level 2 inputs within the fair value hierarchy. Long-term debt is included in the Condensed Consolidated Balance Sheets at carrying value, rather than fair value, and is therefore excluded from the fair value table above. Carrying values shown in the following table are net of unamortized discounts and issuance costs. June 30, 2020 September 30, 2019 (In millions) Fair value Carrying value Unamortized discount and Fair value Carrying value Unamortized 2024 Notes $ — $ — $ — $ 390 $ 371 $ (4) 2025 Notes 806 789 (11) 407 395 (5) 2030 Notes 597 592 (8) — — — Total $ 1,403 $ 1,381 $ (19) $ 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.

Goodwill and Other Intangibles

Goodwill and Other Intangibles	9 Months Ended
	Jun. 30, 2020
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 nine months ended June 30, 2020: (In millions) Quick Lubes Core North America International Total Balance at September 30, 2019 $ 301 $ 89 $ 40 $ 430 Acquisitions (a) 8 — — 8 Currency translation (1) — — (1) Dispositions (a) (3) — — (3) Balance at June 30, 2020 $ 305 $ 89 $ 40 $ 434 (a) Refer to Note 4 for details regarding acquisitions and dispositions completed during the nine months ended June 30, 2020.

Restructuring Activities

Restructuring Activities	9 Months Ended
	Jun. 30, 2020
Restructuring and Related Activities [Abstract]
Restructuring Activities	RESTRUCTURING ACTIVITIES During the second quarter of fiscal 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 included 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 nine months ended June 30, 2020 and $4 million and $10 million during the three and nine months ended June 30, 2019, respectively. 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 Statements 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 nine months ended June 30, 2020 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 (6) Balance at June 30, 2020 $ 4

Debt

Debt	9 Months Ended
	Jun. 30, 2020
Debt Disclosure [Abstract]
Debt	DEBT The following table summarizes Valvoline’s total debt: (In millions) June 30 September 30 2019 2030 Notes $ 600 $ — 2025 Notes 800 400 2024 Notes — 375 Term Loan 475 575 Trade Receivables Facility 90 — Other (a) 8 1 Debt issuance costs and discounts (20) (9) Total debt $ 1,953 $ 1,342 Current portion of long-term debt — 15 Long-term debt $ 1,953 $ 1,327 (a) Other includes borrowings under the China construction credit facility of $7 million as of June 30, 2020. In addition, other includes debt acquired through acquisitions of $1 million as of June 30, 2020 and September 30, 2019. Senior Notes The Company's outstanding fixed rate senior notes as of June 30, 2020 consist of 4.375% senior unsecured notes due 2025 with an aggregate principal amount of $800 million (the “2025 Notes") and 4.250% senior unsecured notes due 2030 with an aggregate principal amount of $600 million (the "2030 Notes," and collectively, the "Senior Notes"). The Senior Notes are subject to customary events of default for similar debt securities, which if triggered may accelerate payment of principal, premium, if any, and accrued but unpaid interest. Such events of default include non-payment of principal and interest, non-performance of covenants and obligations, default on other material debt, and bankruptcy or insolvency. If a change of control repurchase event occurs, Valvoline may be required to offer to purchase the Senior Notes from the holders thereof. The Senior Notes are not otherwise required to be repaid prior to maturity, although they may be redeemed at the option of Valvoline at any time prior to maturity in the manner specified in the governing indentures. The Senior Notes are guaranteed by each of Valvoline's subsidiaries that guarantee obligations under its Senior Credit Agreement. 2025 Notes The 2025 Notes are comprised of two issuances of 4.375% senior unsecured notes due 2025 each with an aggregate principal amount of $400 million, one issuance that was completed in August 2017 (the "Existing 2025 Notes") and the other that was completed in May 2020 (the "Additional 2025 Notes"), except that the Existing 2025 Notes are registered under the Securities Act of 1933, as amended (the “Securities Act”), and certain transfer restrictions, registration rights and additional interest provisions that apply to the Additional 2025 Notes do not apply to the Existing 2025 Notes. The Additional 2025 Notes were issued in a private offering at 99.5% of their principal amount, resulting in an original issue discount of $2 million. The net proceeds from the offering of $393 million (after deducting initial purchasers' discounts and debt issuance costs), together with cash and cash equivalents on hand, were used to repay $450 million in borrowings under the $475 million senior secured revolving credit facility (the “Revolver”). 2030 Notes In February 2020, Valvoline issued the 2030 Notes in a private offering for net proceeds of $592 million (after deducting initial purchasers’ discounts and debt issuance costs). A portion of the net proceeds were used to redeem in full Valvoline's 5.500% senior unsecured notes due 2024 at the aggregate principal amount of $375 million (the "2024 Notes"), plus an early redemption premium of $15 million, accrued and unpaid interest, as well as related fees and expenses for an aggregate redemption price of $394 million. A loss on extinguishment of the 2024 Notes of $19 million was recognized in Net interest and other financing expenses in the Condensed Consolidated Statements of Comprehensive Income for the nine months ended June 30, 2020, comprised of the early redemption premium and the write-off of related unamortized debt issuance costs and discounts. A portion of the net proceeds from the offering of the 2030 Notes were also utilized to prepay $100 million of indebtedness from the term loan facility (the "Term Loan") under the Senior Credit Agreement, with the remainder of the net proceeds to be used for general corporate purposes, which may include acquisitions, repayment of indebtedness, working capital and capital expenditures. In response to the COVID-19 pandemic, the Company is utilizing the remaining net proceeds to preserve cash and cash equivalents and maintain liquidity. Senior Credit Agreement During the nine months ended June 30, 2020, the Company made a principal prepayment of $100 million on its Term Loan using a portion of the net proceeds from the offering of the 2030 Notes, resulting in an outstanding principal balance of $475 million as of June 30, 2020 from the $575 million outstanding as of September 30, 2019. During the nine months ended June 30, 2020, the Company borrowed and repaid $450 million from its Revolver under the Senior Credit Agreement. The initial borrowings under the Revolver were a precautionary measure to further strengthen the Company's liquidity position and provide additional financial flexibility in response to the COVID-19 pandemic and were subsequently repaid using proceeds provided by the offering of the Additional 2025 Notes and existing cash and cash equivalents on hand. As of June 30, 2020 and September 30, 2019 there were no amounts outstanding under the Revolver. As of June 30, 2020, the total borrowing capacity remaining under the Revolver was $468 million due to a reduction of $7 million for letters of credit outstanding. As of June 30, 2020, Valvoline was in compliance with all covenants under the Senior Credit Agreement. Trade Receivables Facility In January 2020, the Company amended its $175 million trade receivables securitization facility (the “Trade Receivables Facility”), which extended the maturity to November 2021. In April 2020, Valvoline further amended the Trade Receivables Facility to modify the eligibility requirements for certain receivables, which had the effect of increasing the Company’s remaining eligible borrowing capacity. This amendment also requires the Company to maintain an amount outstanding equal to the lesser of 50 percent of the unchanged total borrowing capacity and the borrowing base from the availability of eligible receivables. Other relevant terms and conditions of Trade Receivables Facility were substantially unchanged under these amendments. During the nine months ended June 30, 2020, Valvoline borrowed $90 million under the Trade Receivables Facility to proactively increase its cash position and enhance financial agility in light of the uncertainty resulting from the COVID-19 pandemic. As of June 30, 2020, $90 million remained outstanding and no amounts were outstanding as of September 30, 2019. Based on the availability of eligible receivables, the remaining borrowing capacity of the Trade Receivables Facility as of June 30, 2020 was $85 million. The financing subsidiary owned $267 million and $259 million of outstanding accounts receivable as of June 30, 2020 and September 30, 2019, respectively, which are included in Accounts receivable, net in the Company’s Condensed Consolidated Balance Sheets. China Credit Facility In May 2020, the Company entered into a five-year credit agreement (the “China Credit Facility”) for approximately $40 million to finance the completion of construction of the blending and packaging plant in China. Borrowings will bear interest at the local prime rate less the applicable interest rate margin and will be secured by the assets underlying the project. The proceeds from the China Credit Facility are restricted for capital expenditures directly related to the construction of the blending and packaging plant in China. As of June 30, 2020, there was $7 million outstanding on the China Credit Facility, which is reflected in the Other line in the table above and had total borrowing capacity remaining of approximately $33 million.

Income Taxes

Income Taxes	9 Months Ended
	Jun. 30, 2020
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 Nine months ended June 30 June 30 (In millions) 2020 2019 2020 2019 Income tax expense $ 19 $ 20 $ 68 $ 56 Effective tax rate percentage 24.4 % 23.5 % 25.9 % 23.6 % The increase in effective tax rates for the three and nine months ended June 30, 2020 compared to the prior year periods was attributed to the mix shift of projected annual pre-tax earnings to jurisdictions with higher statutory tax rates. The increase in income tax expense and the effective tax rate for the nine months ended June 30, 2020 was also related to tax reform, which resulted in unfavorable discrete activity in the current year period due to legislation enacted in India, while the clarification of certain provisions of Kentucky tax reform regulations drove favorable discrete activity in the prior year period. Higher pre-tax earnings also led to increased income tax expense in the current year-to-date period.

Employee Benefit Plans

Employee Benefit Plans	9 Months Ended
	Jun. 30, 2020
Retirement Benefits [Abstract]
Employee Benefit Plans	EMPLOYEE BENEFIT PLANS The following table summarizes the components of pension and other postretirement benefit (income) cost: Other postretirement benefits Pension benefits (In millions) 2020 2019 2020 2019 Three months ended June 30 Service cost $ 1 $ — $ — $ — Interest cost 15 21 — — Expected return on plan assets (21) (20) — — Amortization of prior service credit — — (3) (3) Net periodic benefit (income) cost $ (5) $ 1 $ (3) $ (3) Nine months ended June 30 Service cost $ 2 $ 1 $ — $ — Interest cost 46 61 1 1 Expected return on plan assets (65) (60) — — Amortization of prior service credit — — (9) (9) Net periodic benefit (income) cost $ (17) $ 2 $ (8) $ (8)

Litigation, Claims and Continge

Litigation, Claims and Contingencies	9 Months Ended
	Jun. 30, 2020
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	9 Months Ended
	Jun. 30, 2020
Earnings Per Share [Abstract]
Earnings Per Share	EARNINGS PER SHARE The following table summarizes basic and diluted earnings per share: Three months ended Nine months ended June 30 June 30 (In millions, except per share amounts) 2020 2019 2020 2019 Numerator Net income $ 59 $ 65 $ 195 $ 181 Denominator Weighted average common shares outstanding 186 189 187 189 Effect of potentially dilutive securities (a) — — 1 — Weighted average diluted shares outstanding 186 189 188 189 Earnings per share Basic $ 0.32 $ 0.34 $ 1.04 $ 0.96 Diluted $ 0.32 $ 0.34 $ 1.04 $ 0.96 (a) Outstanding securities, primarily stock appreciation rights, were not included in the computation of diluted earnings per share because their effect would have been antidilutive. There were approximately 2 million and 1 million a ntidilutive outstanding securities in the three and nine months ended June 30, 2020, respectively, and there were approximately 1 million and 2 million in the three and nine months ended June 30, 2019, respectively.

Reportable Segment Information

Reportable Segment Information	9 Months Ended
	Jun. 30, 2020
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: (In millions) Three months ended Nine months ended June 30 June 30 2020 2019 2020 2019 Sales Quick Lubes $ 199 $ 211 $ 629 $ 600 Core North America 207 260 693 735 International 110 142 379 426 Consolidated sales $ 516 $ 613 $ 1,701 $ 1,761 Operating income Quick Lubes $ 36 $ 48 $ 114 $ 130 Core North America 51 38 144 109 International 12 20 50 61 Total operating segments 99 106 308 300 Unallocated and other (a) (11) (4) 1 (15) Consolidated operating income $ 88 $ 102 $ 309 $ 285 (a) Unallocated and other includes net legacy and separation-related expenses/income and corporate costs not allocated to the reportable segments, including certain acquisition and divestiture-related costs, restructuring and related expenses, and certain current year incentive compensation adjustments. Disaggregation of revenue The following table summarizes sales by primary customer channel for the Company’s reportable segments: Three months ended Nine months ended June 30 June 30 (In millions) 2020 2019 2020 2019 Quick Lubes Company-owned operations $ 139 $ 136 $ 421 $ 388 Non-company owned operations 60 75 208 212 Total Quick Lubes 199 211 629 600 Core North America Retail 137 143 407 399 Installer and other 70 117 286 336 Total Core North America 207 260 693 735 International 110 142 379 426 Consolidated sales $ 516 $ 613 $ 1,701 $ 1,761 Sales by reportable segment disaggregated by geographic market follows: Quick Lubes Core North America International Total (In millions) 2020 2019 2020 2019 2020 2019 2020 2019 Three months ended June 30 North America (a) $ 199 $ 211 $ 207 $ 260 $ — $ — $ 406 $ 471 Europe, Middle East and Africa ("EMEA") — — — — 34 43 34 43 Asia Pacific — — — — 65 72 65 72 Latin America (a) — — — — 11 27 11 27 Totals $ 199 $ 211 $ 207 $ 260 $ 110 $ 142 $ 516 $ 613 Nine months ended June 30 North America (a) $ 629 $ 600 $ 693 $ 735 $ — $ — $ 1,322 $ 1,335 Europe, Middle East and Africa ("EMEA") — — — — 125 134 125 134 Asia Pacific — — — — 193 212 193 212 Latin America (a) — — — — 61 80 61 80 Totals $ 629 $ 600 $ 693 $ 735 $ 379 $ 426 $ 1,701 $ 1,761 (a) Valvoline includes the United States and Canada in its North America region. Mexico is included within the Latin America region.

Supplemental Financial Informat

Supplemental Financial Information	9 Months Ended
	Jun. 30, 2020
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) June 30 September 30 June 30 Cash and cash equivalents $ 751 $ 159 $ 126 Restricted cash (a) — — 11 Total cash, cash equivalents and restricted cash $ 751 $ 159 $ 137 (a) Included in Prepaid expenses and other current assets within the Condensed Consolidated Balance Sheets. Accounts and other receivables The following table summarizes Valvoline’s accounts and other receivables in the Condensed Consolidated Balance Sheets: (In millions) June 30 September 30 Current Trade $ 377 $ 392 Other 15 15 Notes receivable from franchisees 11 — Receivables, gross $ 403 $ 407 Allowance for doubtful accounts (7) (6) Receivables, net $ 396 $ 401 Non-current (a) Notes receivable from franchisees $ 18 $ — Other notes receivable 7 5 Noncurrent notes receivable, gross $ 25 $ 5 Allowance for losses (2) (2) Noncurrent notes receivable, net $ 23 $ 3 (a) Included in Other noncurrent assets within the Condensed Consolidated Balance Sheets. During the nine month periods ended June 30, 2020 and 2019, Valvoline sold trade accounts receivable to a financial institution of $59 million and $63 million, respectively. Valvoline’s notes receivable primarily consist of low-interest term loans extended to franchisees to provide financial assistance as a response to the COVID-19 pandemic. Notes receivable are recorded at amortized cost, net of any allowance for credit losses. The notes receivables from franchisees bear interest at variable rates consistent with those in Valvoline's Senior Credit Agreement, and accordingly, their carrying amounts approximate fair value. Valvoline monitors its notes receivable for collectibility and will record provisions for estimated credit losses when the Company believes a loss is probable. 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) June 30 September 30 Finished products $ 187 $ 203 Raw materials, supplies and work in process 31 32 Reserve for LIFO cost valuation (29) (41) Total inventories, net $ 189 $ 194 Revenue recognition The following table disaggregates the Company’s sales by timing of revenue recognized: Three months ended Nine months ended June 30 June 30 (In millions) 2020 2019 2020 2019 Sales at a point in time $ 508 $ 602 $ 1,673 $ 1,730 Franchised revenues transferred over time 8 11 28 31 Total consolidated sales $ 516 $ 613 $ 1,701 $ 1,761

Guarantor Financial Information

Guarantor Financial Information	9 Months Ended
	Jun. 30, 2020
Condensed Financial Information Disclosure [Abstract]
Guarantor Financial Information	GUARANTOR FINANCIAL INFORMATION As described in Note 7, Valvoline issued the 2030 Notes in an unregistered private offering in February 2020 and used a portion of the net proceeds to redeem in full its 2024 Notes. The Existing 2025 Notes described in Note 7 were registered in an exchange offer completed in December 2017 and remain subject to Rule 3-10 of SEC Regulation S-X. In May 2020, the Company issued the Additional 2025 Notes as an add-on to its Existing 2025 Notes. The registration rights agreement with respect to the Additional 2025 Notes require the Company to use its reasonable best efforts to consummate an offer to exchange the outstanding notes for notes registered under the Securities Act. Accordingly, in June 2020, the Company filed a Registration Statement on Form S-4, which became effective in July 2020, to initiate the exchange offer for the Additional 2025 Notes in compliance with its registration obligations. The Company will not receive any proceeds from the exchange offer. The 2025 Notes 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 2025 Notes. The accompanying condensed consolidating financial statements are included in accordance with Rule 3-10(f) of SEC Regulation S-X and 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 the 2025 Notes, the Guarantor Subsidiaries on a combined basis, the Non-Guarantor Subsidiaries on a combined basis, and the eliminations necessary to arrive at the Company’s consolidated results. Condensed Consolidating Statements of Comprehensive Income For the three months ended June 30, 2020 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Sales $ — $ 409 $ 114 $ (7) $ 516 Cost of sales — 255 81 (7) 329 Gross profit — 154 33 — 187 Selling, general and administrative expenses 4 80 22 — 106 Net legacy and separation-related expenses — 1 — — 1 Equity and other (income) expenses, net — (10) 2 — (8) Operating (loss) income (4) 83 9 — 88 Net pension and other postretirement plan income — (9) — — (9) Net interest and other financing expenses 17 1 1 — 19 (Loss) income before income taxes (21) 91 8 — 78 Income tax (benefit) expense (7) 24 2 — 19 Equity in net income of subsidiaries (73) (6) — 79 — Net income $ 59 $ 73 $ 6 $ (79) $ 59 Total comprehensive income $ 66 $ 80 $ 17 $ (97) $ 66 Condensed Consolidating Statements of Comprehensive Income For the three months ended June 30, 2019 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Sales $ — $ 491 $ 140 $ (18) $ 613 Cost of sales — 324 100 (18) 406 Gross profit — 167 40 — 207 Selling, general and administrative expenses 3 87 26 — 116 Net legacy and separation-related expenses — — — — — Equity and other (income) expenses, net — (16) 5 — (11) Operating (loss) income (3) 96 9 — 102 Net pension and other postretirement plan income — (2) — — (2) Net interest and other financing expenses 17 2 — — 19 (Loss) income before income taxes (20) 96 9 — 85 Income tax (benefit) expense (5) 24 1 — 20 Equity in net income of subsidiaries (80) (8) — 88 — Net income $ 65 $ 80 $ 8 $ (88) $ 65 Total comprehensive income $ 63 $ 78 $ 9 $ (87) $ 63 Condensed Consolidating Statements of Comprehensive Income For the nine months ended June 30, 2020 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Sales $ — $ 1,357 $ 376 $ (32) $ 1,701 Cost of sales — 861 267 (32) 1,096 Gross profit — 496 109 — 605 Selling, general and administrative expenses 7 243 69 — 319 Net legacy and separation-related (income) expenses (1) 1 — — — Equity and other (income) expenses, net — (36) 13 — (23) Operating (loss) income (6) 288 27 — 309 Net pension and other postretirement plan income — (27) — — (27) Net interest and other financing expenses 68 4 1 — 73 (Loss) income before income taxes (74) 311 26 — 263 Income tax (benefit) expense (21) 82 7 — 68 Equity in net income of subsidiaries (248) (19) — 267 — Net income $ 195 $ 248 $ 19 $ (267) $ 195 Total comprehensive income $ 185 $ 238 $ 17 $ (255) $ 185 Condensed Consolidating Statements of Comprehensive Income For the nine months ended June 30, 2019 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Sales $ — $ 1,396 $ 415 $ (50) $ 1,761 Cost of sales — 917 301 (50) 1,168 Gross profit — 479 114 — 593 Selling, general and administrative expenses 8 258 68 — 334 Net legacy and separation-related expenses 3 — — — 3 Equity and other (income) expenses, net — (43) 14 — (29) Operating (loss) income (11) 264 32 — 285 Net pension and other postretirement plan income — (7) — — (7) Net interest and other financing expenses 47 5 3 — 55 (Loss) income before income taxes (58) 266 29 — 237 Income tax (benefit) expense (16) 65 7 — 56 Equity in net income of subsidiaries (223) (22) — 245 — Net income $ 181 $ 223 $ 22 $ (245) $ 181 Total comprehensive income $ 173 $ 215 $ 20 $ (235) $ 173 Condensed Consolidating Balance Sheets As of June 30, 2020 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets Cash and cash equivalents $ — $ 577 $ 174 $ — $ 751 Receivables, net 249 47 348 (248) 396 Inventories, net — 106 83 — 189 Prepaid expenses and other current assets 3 39 1 — 43 Total current assets 252 769 606 (248) 1,379 Noncurrent assets Property, plant and equipment, net — 470 89 — 559 Operating lease assets — 220 41 — 261 Goodwill and intangibles, net — 432 78 — 510 Equity method investments — 39 — — 39 Investment in subsidiaries 1,403 557 — (1,960) — Deferred income taxes 68 — 14 — 82 Other noncurrent assets 2 118 13 — 133 Total noncurrent assets 1,473 1,836 235 (1,960) 1,584 Total assets $ 1,725 $ 2,605 $ 841 $ (2,208) $ 2,963 Liabilities and Stockholders’ Deficit Current liabilities Trade and other payables $ — $ 326 $ 100 $ (248) $ 178 Accrued expenses and other liabilities 28 183 43 — 254 Total current liabilities 28 509 143 (248) 432 Noncurrent liabilities Long-term debt 1,855 1 97 — 1,953 Employee benefit obligations — 335 15 — 350 Operating lease liabilities — 203 28 — 231 Other noncurrent liabilities 30 154 1 — 185 Total noncurrent liabilities 1,885 693 141 — 2,719 Commitments and contingencies Stockholders’ (deficit) equity (188) 1,403 557 (1,960) (188) Total liabilities and stockholders’ deficit / equity $ 1,725 $ 2,605 $ 841 $ (2,208) $ 2,963 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 Receivables, 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 nine months ended June 30, 2020 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows provided by operating activities $ (369) $ 632 $ 8 $ — $ 271 Cash flows from investing activities Additions to property, plant and equipment — (66) (28) — (94) Notes receivable, net of repayments — (29) (2) — (31) Acquisitions of business — (18) — — (18) Cash flows used in investing activities — (113) (30) — (143) Cash flows from financing activities Proceeds from borrowings 1,450 — 97 — 1,547 Payments of debt issuance costs and discounts (16) — — — (16) Repayments on borrowings (925) — — — (925) Premium paid to extinguish debt (15) — — — (15) Repurchases of common stock (60) — — — (60) Cash dividends paid (63) — — — (63) Other financing activities (2) (1) — — (3) Cash flows provided by financing activities 369 (1) 97 — 465 Effect of currency exchange rate changes on cash, cash equivalents, and restricted cash — — (1) — (1) Increase in cash, cash equivalents, and restricted cash — 518 74 — 592 Cash, cash equivalents, and restricted cash - beginning of year — 59 100 — 159 Cash, cash equivalents, and restricted cash - end of period $ — $ 577 $ 174 $ — $ 751 Condensed Consolidating Statements of Cash Flows For the nine months ended June 30, 2019 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows (used in) provided by operating activities $ (94) $ 98 $ 210 $ — $ 214 Cash flows from investing activities Additions to property, plant and equipment — (60) (13) — (73) Notes receivable, net — — (2) (2) Acquisitions of business — (28) (22) — (50) Other investing activities, net — 1 — — 1 Cash flows used in investing activities — (87) (37) — (124) Cash flows from financing activities Proceeds from borrowings 663 — 82 — 745 Payments of debt issuance costs and discounts (2) — — — (2) Repayments on borrowings (505) — (222) — (727) Cash dividends paid (60) — — — (60) Other financing activities (2) (2) (1) — (5) Cash flows provided by (used in) financing activities 94 (2) (141) — (49) Effect of currency exchange rate changes on cash, cash equivalents, and restricted cash — — — — — Increase in cash, cash equivalents, and restricted cash — 9 32 — 41 Cash, cash equivalents, and restricted cash - beginning of year — 20 76 — 96 Cash, cash equivalents, and restricted cash - end of period $ — $ 29 $ 108 $ — $ 137

Subsequent Events

Subsequent Events	9 Months Ended
	Jun. 30, 2020
Subsequent Events [Abstract]
Subsequent Events	SUBSEQUENT EVENTS Dividend declared On July 23, 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 September 15, 2020 to shareholders of record as of the close of business on August 31, 2020. Interest rate swap agreement

Basis of Presentation and Sig_2

Basis of Presentation and Significant Accounting Policies (Policies)	9 Months Ended
	Jun. 30, 2020
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. Certain prior period amounts have been reclassified to conform to the current presentation. The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make use of estimates and assumptions that affect the reported amounts and disclosures. Actual results may vary from these estimates. In the opinion of management, 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, particularly in light of the novel coronavirus ("COVID-19") global pandemic and its effects on Valvoline and global economies. In late December 2019, COVID-19 was identified in Wuhan, China and since that time it has continued to spread globally, including to the United States, leading the World Health Organization to declare a global pandemic and recommend containment and mitigation actions worldwide in March 2020. Since March 31, 2020, the COVID-19 pandemic has continued, and various governments have issued or extended shelter-in-place orders. As of the date of this filing, restrictions are in various phases of being reduced and re-implemented with the resulting impacts being monitored. Valvoline has substantially maintained its operations during the pandemic, and precautionary measures have been taken to protect the Company's employees and customers, maintain liquidity and manage the impacts of reduced volumes. The COVID-19 pandemic adversely affected Valvoline's results of operations for the three and nine months ended June 30, 2020. Adverse impacts from COVID-19 are expected in future periods, and the extent of certain future impacts cannot be reasonably estimated at this time due to numerous uncertainties, including the duration and severity of the pandemic.
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. In August 2017, the FASB issued accounting guidance, which reduced the complexity of and simplified the application of hedge accounting. The guidance refines and expands hedge accounting for both financial and nonfinancial risk components, eliminates the need to separately measure and report hedge ineffectiveness, and aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The guidance also eases documentation and assessment requirements and modifies certain disclosure requirements. This guidance did not have a material impact on the Company’s condensed consolidated financial statements in the nine months ended June 30, 2020 as Valvoline did not have any existing hedging relationships at adoption on October 1, 2019. Refer to Note 3 for additional information regarding the interest rate swap agreements the Company entered into during the third quarter of fiscal 2020. 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 about significant estimates and credit quality and will become effective for Valvoline on October 1, 2020. The Company is evaluating the effects of adopting this new accounting guidance, including developing models to estimate expected credit losses, assessing appropriate assumptions, designing changes to its related processes, and evaluating the effects on the condensed consolidated financial statements, which are not currently expected to be material. The impact of adoption will be largely dependent on the credit quality of the Company's receivables outstanding at adoption. The Company evaluates creditworthiness when negotiating contracts, and as the Company's receivables are generally short-term in nature, the timing and amount of credit loss recognized under existing guidance and the new guidance is not expected to differ materially. 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)	9 Months Ended
	Jun. 30, 2020
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 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)	9 Months Ended
	Jun. 30, 2020
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 June 30, 2020 Assets Operating lease assets Operating lease assets $ 261 Finance lease assets Property, plant and equipment, net 66 Amortization of finance lease assets Property, plant and equipment, net (8) Total leased assets $ 319 Liabilities Current: Operating lease liabilities Accrued expenses and other liabilities $ 32 Finance lease liabilities Accrued expenses and other liabilities 3 Noncurrent: Operating lease liabilities Operating lease liabilities 231 Finance lease liabilities Other noncurrent liabilities 60 Total lease liabilities $ 326
Schedule of Lease Costs and Other Information	The following table presents the components of total lease costs: (In millions) Location in Condensed Consolidated Statements of Comprehensive Income Three months ended June 30, 2020 Nine months ended June 30, 2020 Operating lease cost Cost of sales and Selling, general and administrative expenses (a) $ 11 $ 33 Finance lease costs Amortization of lease assets Cost of sales (a) 1 2 Interest on lease liabilities Net interest and other financing expenses 1 3 Variable lease cost Cost of sales and Selling, general and administrative expenses (a) 1 3 Sublease income Equity and other income, net (1) (4) Total lease cost $ 13 $ 37 (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 June 30, 2020 Nine months ended June 30, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases (a) $ 11 $ 32 Operating cash flows from finance leases $ — $ 2 Financing cash flow from finance leases $ 1 $ 1 Lease assets obtained in exchange for lease obligations: Operating leases $ 14 $ 42 Finance leases $ 20 $ 38 (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 June 30, 2020: Operating Leases Financing Leases Weighted average remaining lease term (in years) 9.7 13.3 Weighted average discount rate 4.09 % 7.45 %
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 June 30, 2020: (In millions) Operating leases Finance leases Remainder of 2020 $ 11 $ 1 2021 41 7 2022 39 7 2023 35 7 2024 31 7 Thereafter 166 67 Total future lease payments 323 96 Imputed interest 60 33 Present value of lease liabilities $ 263 $ 63
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 June 30, 2020: (In millions) Operating leases Finance leases Remainder of 2020 $ 11 $ 1 2021 41 7 2022 39 7 2023 35 7 2024 31 7 Thereafter 166 67 Total future lease payments 323 96 Imputed interest 60 33 Present value of lease liabilities $ 263 $ 63
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)	9 Months Ended
	Jun. 30, 2020
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 June 30 September 30 Cash and cash equivalents Money market funds Level 1 $ 294 $ — Time deposits Level 2 159 59 Prepaid expenses and other current assets Currency derivatives (a) Level 2 3 — Other noncurrent assets Non-qualified trust funds Level 1 17 20 Total assets at fair value $ 473 $ 79 Accrued expenses and other liabilities Currency derivatives (a) Level 2 $ 3 $ — Interest rate swap agreements (b) Level 2 — — Total liabilities at fair value $ 3 $ — (a) The Company had outstanding contracts with notional values of $125 million and $111 million as of June 30, 2020 and September 30, 2019, respectively.
Summary of Fair Value of Debt	Carrying values shown in the following table are net of unamortized discounts and issuance costs. June 30, 2020 September 30, 2019 (In millions) Fair value Carrying value Unamortized discount and Fair value Carrying value Unamortized 2024 Notes $ — $ — $ — $ 390 $ 371 $ (4) 2025 Notes 806 789 (11) 407 395 (5) 2030 Notes 597 592 (8) — — — Total $ 1,403 $ 1,381 $ (19) $ 797 $ 766 $ (9)

Acquisitions and Divestitures (

Acquisitions and Divestitures (Tables)	9 Months Ended
	Jun. 30, 2020
Business Combinations [Abstract]
Summary of Consideration Paid and Assets and Liabilities Acquired	: (In millions) 2020 2019 Property, plant and equipment $ 1 $ 3 Goodwill 8 34 Intangible assets (a) Reacquired franchise rights 9 5 Customer relationships — 5 Trademarks and trade names — 1 Other — 2 Net assets acquired $ 18 $ 50

Goodwill and Other Intangibles

Goodwill and Other Intangibles (Tables)	9 Months Ended
	Jun. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The following table summarizes the changes in the carrying amount of goodwill by reportable segment and in total during the nine months ended June 30, 2020: (In millions) Quick Lubes Core North America International Total Balance at September 30, 2019 $ 301 $ 89 $ 40 $ 430 Acquisitions (a) 8 — — 8 Currency translation (1) — — (1) Dispositions (a) (3) — — (3) Balance at June 30, 2020 $ 305 $ 89 $ 40 $ 434 (a) Refer to Note 4 for details regarding acquisitions and dispositions completed during the nine months ended June 30, 2020.

Restructuring Activities (Table

Restructuring Activities (Tables)	9 Months Ended
	Jun. 30, 2020
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 (6) Balance at June 30, 2020 $ 4

Debt (Tables)

Debt (Tables)	9 Months Ended
	Jun. 30, 2020
Debt Disclosure [Abstract]
Schedule of Total Debt	The following table summarizes Valvoline’s total debt: (In millions) June 30 September 30 2019 2030 Notes $ 600 $ — 2025 Notes 800 400 2024 Notes — 375 Term Loan 475 575 Trade Receivables Facility 90 — Other (a) 8 1 Debt issuance costs and discounts (20) (9) Total debt $ 1,953 $ 1,342 Current portion of long-term debt — 15 Long-term debt $ 1,953 $ 1,327 (a) Other includes borrowings under the China construction credit facility of $7 million as of June 30, 2020. In addition, other includes debt acquired through acquisitions of $1 million as of June 30, 2020 and September 30, 2019.

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Jun. 30, 2020
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 Nine months ended June 30 June 30 (In millions) 2020 2019 2020 2019 Income tax expense $ 19 $ 20 $ 68 $ 56 Effective tax rate percentage 24.4 % 23.5 % 25.9 % 23.6 %

Employee Benefit Plans (Tables)

Employee Benefit Plans (Tables)	9 Months Ended
	Jun. 30, 2020
Retirement Benefits [Abstract]
Components of Pension and Other Postretirement Benefit Income	The following table summarizes the components of pension and other postretirement benefit (income) cost: Other postretirement benefits Pension benefits (In millions) 2020 2019 2020 2019 Three months ended June 30 Service cost $ 1 $ — $ — $ — Interest cost 15 21 — — Expected return on plan assets (21) (20) — — Amortization of prior service credit — — (3) (3) Net periodic benefit (income) cost $ (5) $ 1 $ (3) $ (3) Nine months ended June 30 Service cost $ 2 $ 1 $ — $ — Interest cost 46 61 1 1 Expected return on plan assets (65) (60) — — Amortization of prior service credit — — (9) (9) Net periodic benefit (income) cost $ (17) $ 2 $ (8) $ (8)

Reportable Segment Information

Reportable Segment Information (Tables)	9 Months Ended
	Jun. 30, 2020
Segment Reporting [Abstract]
Schedule of Segment Reporting Information	The following table presents sales and operating income for each reportable segment: (In millions) Three months ended Nine months ended June 30 June 30 2020 2019 2020 2019 Sales Quick Lubes $ 199 $ 211 $ 629 $ 600 Core North America 207 260 693 735 International 110 142 379 426 Consolidated sales $ 516 $ 613 $ 1,701 $ 1,761 Operating income Quick Lubes $ 36 $ 48 $ 114 $ 130 Core North America 51 38 144 109 International 12 20 50 61 Total operating segments 99 106 308 300 Unallocated and other (a) (11) (4) 1 (15) Consolidated operating income $ 88 $ 102 $ 309 $ 285 (a) Unallocated and other includes net legacy and separation-related expenses/income and corporate costs not allocated to the reportable segments, including certain acquisition and divestiture-related costs, restructuring and related expenses, and certain current year incentive compensation adjustments.
Schedule of Disaggregated Revenues	The following table summarizes sales by primary customer channel for the Company’s reportable segments: Three months ended Nine months ended June 30 June 30 (In millions) 2020 2019 2020 2019 Quick Lubes Company-owned operations $ 139 $ 136 $ 421 $ 388 Non-company owned operations 60 75 208 212 Total Quick Lubes 199 211 629 600 Core North America Retail 137 143 407 399 Installer and other 70 117 286 336 Total Core North America 207 260 693 735 International 110 142 379 426 Consolidated sales $ 516 $ 613 $ 1,701 $ 1,761
Schedule of Sales Disaggregated by Segment and Geographical Area	Sales by reportable segment disaggregated by geographic market follows: Quick Lubes Core North America International Total (In millions) 2020 2019 2020 2019 2020 2019 2020 2019 Three months ended June 30 North America (a) $ 199 $ 211 $ 207 $ 260 $ — $ — $ 406 $ 471 Europe, Middle East and Africa ("EMEA") — — — — 34 43 34 43 Asia Pacific — — — — 65 72 65 72 Latin America (a) — — — — 11 27 11 27 Totals $ 199 $ 211 $ 207 $ 260 $ 110 $ 142 $ 516 $ 613 Nine months ended June 30 North America (a) $ 629 $ 600 $ 693 $ 735 $ — $ — $ 1,322 $ 1,335 Europe, Middle East and Africa ("EMEA") — — — — 125 134 125 134 Asia Pacific — — — — 193 212 193 212 Latin America (a) — — — — 61 80 61 80 Totals $ 629 $ 600 $ 693 $ 735 $ 379 $ 426 $ 1,701 $ 1,761 (a) Valvoline includes the United States and Canada in its North America region. Mexico is included within the Latin America region.

Supplemental Financial Inform_2

Supplemental Financial Information (Tables)	9 Months Ended
	Jun. 30, 2020
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) June 30 September 30 June 30 Cash and cash equivalents $ 751 $ 159 $ 126 Restricted cash (a) — — 11 Total cash, cash equivalents and restricted cash $ 751 $ 159 $ 137
Summary of Accounts Receivable	The following table summarizes Valvoline’s accounts and other receivables in the Condensed Consolidated Balance Sheets: (In millions) June 30 September 30 Current Trade $ 377 $ 392 Other 15 15 Notes receivable from franchisees 11 — Receivables, gross $ 403 $ 407 Allowance for doubtful accounts (7) (6) Receivables, net $ 396 $ 401 Non-current (a) Notes receivable from franchisees $ 18 $ — Other notes receivable 7 5 Noncurrent notes receivable, gross $ 25 $ 5 Allowance for losses (2) (2) Noncurrent notes receivable, net $ 23 $ 3 (a) Included in Other noncurrent assets within the Condensed Consolidated Balance Sheets.
Summary of Inventory	The following table summarizes Valvoline’s inventories in the Condensed Consolidated Balance Sheets: (In millions) June 30 September 30 Finished products $ 187 $ 203 Raw materials, supplies and work in process 31 32 Reserve for LIFO cost valuation (29) (41) Total inventories, net $ 189 $ 194
Schedule of Disaggregated Revenues	The following table summarizes sales by primary customer channel for the Company’s reportable segments: Three months ended Nine months ended June 30 June 30 (In millions) 2020 2019 2020 2019 Quick Lubes Company-owned operations $ 139 $ 136 $ 421 $ 388 Non-company owned operations 60 75 208 212 Total Quick Lubes 199 211 629 600 Core North America Retail 137 143 407 399 Installer and other 70 117 286 336 Total Core North America 207 260 693 735 International 110 142 379 426 Consolidated sales $ 516 $ 613 $ 1,701 $ 1,761
Disaggregation of Sales by Timing of Revenue Recognized	The following table disaggregates the Company’s sales by timing of revenue recognized: Three months ended Nine months ended June 30 June 30 (In millions) 2020 2019 2020 2019 Sales at a point in time $ 508 $ 602 $ 1,673 $ 1,730 Franchised revenues transferred over time 8 11 28 31 Total consolidated sales $ 516 $ 613 $ 1,701 $ 1,761

Guarantor Financial Informati_2

Guarantor Financial Information (Tables)	9 Months Ended
	Jun. 30, 2020
Condensed Financial Information Disclosure [Abstract]
Condensed Consolidating Statements of Comprehensive Income	Condensed Consolidating Statements of Comprehensive Income For the three months ended June 30, 2020 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Sales $ — $ 409 $ 114 $ (7) $ 516 Cost of sales — 255 81 (7) 329 Gross profit — 154 33 — 187 Selling, general and administrative expenses 4 80 22 — 106 Net legacy and separation-related expenses — 1 — — 1 Equity and other (income) expenses, net — (10) 2 — (8) Operating (loss) income (4) 83 9 — 88 Net pension and other postretirement plan income — (9) — — (9) Net interest and other financing expenses 17 1 1 — 19 (Loss) income before income taxes (21) 91 8 — 78 Income tax (benefit) expense (7) 24 2 — 19 Equity in net income of subsidiaries (73) (6) — 79 — Net income $ 59 $ 73 $ 6 $ (79) $ 59 Total comprehensive income $ 66 $ 80 $ 17 $ (97) $ 66 Condensed Consolidating Statements of Comprehensive Income For the three months ended June 30, 2019 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Sales $ — $ 491 $ 140 $ (18) $ 613 Cost of sales — 324 100 (18) 406 Gross profit — 167 40 — 207 Selling, general and administrative expenses 3 87 26 — 116 Net legacy and separation-related expenses — — — — — Equity and other (income) expenses, net — (16) 5 — (11) Operating (loss) income (3) 96 9 — 102 Net pension and other postretirement plan income — (2) — — (2) Net interest and other financing expenses 17 2 — — 19 (Loss) income before income taxes (20) 96 9 — 85 Income tax (benefit) expense (5) 24 1 — 20 Equity in net income of subsidiaries (80) (8) — 88 — Net income $ 65 $ 80 $ 8 $ (88) $ 65 Total comprehensive income $ 63 $ 78 $ 9 $ (87) $ 63 Condensed Consolidating Statements of Comprehensive Income For the nine months ended June 30, 2020 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Sales $ — $ 1,357 $ 376 $ (32) $ 1,701 Cost of sales — 861 267 (32) 1,096 Gross profit — 496 109 — 605 Selling, general and administrative expenses 7 243 69 — 319 Net legacy and separation-related (income) expenses (1) 1 — — — Equity and other (income) expenses, net — (36) 13 — (23) Operating (loss) income (6) 288 27 — 309 Net pension and other postretirement plan income — (27) — — (27) Net interest and other financing expenses 68 4 1 — 73 (Loss) income before income taxes (74) 311 26 — 263 Income tax (benefit) expense (21) 82 7 — 68 Equity in net income of subsidiaries (248) (19) — 267 — Net income $ 195 $ 248 $ 19 $ (267) $ 195 Total comprehensive income $ 185 $ 238 $ 17 $ (255) $ 185 Condensed Consolidating Statements of Comprehensive Income For the nine months ended June 30, 2019 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Sales $ — $ 1,396 $ 415 $ (50) $ 1,761 Cost of sales — 917 301 (50) 1,168 Gross profit — 479 114 — 593 Selling, general and administrative expenses 8 258 68 — 334 Net legacy and separation-related expenses 3 — — — 3 Equity and other (income) expenses, net — (43) 14 — (29) Operating (loss) income (11) 264 32 — 285 Net pension and other postretirement plan income — (7) — — (7) Net interest and other financing expenses 47 5 3 — 55 (Loss) income before income taxes (58) 266 29 — 237 Income tax (benefit) expense (16) 65 7 — 56 Equity in net income of subsidiaries (223) (22) — 245 — Net income $ 181 $ 223 $ 22 $ (245) $ 181 Total comprehensive income $ 173 $ 215 $ 20 $ (235) $ 173
Condensed Income Statement	Condensed Consolidating Statements of Comprehensive Income For the three months ended June 30, 2020 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Sales $ — $ 409 $ 114 $ (7) $ 516 Cost of sales — 255 81 (7) 329 Gross profit — 154 33 — 187 Selling, general and administrative expenses 4 80 22 — 106 Net legacy and separation-related expenses — 1 — — 1 Equity and other (income) expenses, net — (10) 2 — (8) Operating (loss) income (4) 83 9 — 88 Net pension and other postretirement plan income — (9) — — (9) Net interest and other financing expenses 17 1 1 — 19 (Loss) income before income taxes (21) 91 8 — 78 Income tax (benefit) expense (7) 24 2 — 19 Equity in net income of subsidiaries (73) (6) — 79 — Net income $ 59 $ 73 $ 6 $ (79) $ 59 Total comprehensive income $ 66 $ 80 $ 17 $ (97) $ 66 Condensed Consolidating Statements of Comprehensive Income For the three months ended June 30, 2019 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Sales $ — $ 491 $ 140 $ (18) $ 613 Cost of sales — 324 100 (18) 406 Gross profit — 167 40 — 207 Selling, general and administrative expenses 3 87 26 — 116 Net legacy and separation-related expenses — — — — — Equity and other (income) expenses, net — (16) 5 — (11) Operating (loss) income (3) 96 9 — 102 Net pension and other postretirement plan income — (2) — — (2) Net interest and other financing expenses 17 2 — — 19 (Loss) income before income taxes (20) 96 9 — 85 Income tax (benefit) expense (5) 24 1 — 20 Equity in net income of subsidiaries (80) (8) — 88 — Net income $ 65 $ 80 $ 8 $ (88) $ 65 Total comprehensive income $ 63 $ 78 $ 9 $ (87) $ 63 Condensed Consolidating Statements of Comprehensive Income For the nine months ended June 30, 2020 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Sales $ — $ 1,357 $ 376 $ (32) $ 1,701 Cost of sales — 861 267 (32) 1,096 Gross profit — 496 109 — 605 Selling, general and administrative expenses 7 243 69 — 319 Net legacy and separation-related (income) expenses (1) 1 — — — Equity and other (income) expenses, net — (36) 13 — (23) Operating (loss) income (6) 288 27 — 309 Net pension and other postretirement plan income — (27) — — (27) Net interest and other financing expenses 68 4 1 — 73 (Loss) income before income taxes (74) 311 26 — 263 Income tax (benefit) expense (21) 82 7 — 68 Equity in net income of subsidiaries (248) (19) — 267 — Net income $ 195 $ 248 $ 19 $ (267) $ 195 Total comprehensive income $ 185 $ 238 $ 17 $ (255) $ 185 Condensed Consolidating Statements of Comprehensive Income For the nine months ended June 30, 2019 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Sales $ — $ 1,396 $ 415 $ (50) $ 1,761 Cost of sales — 917 301 (50) 1,168 Gross profit — 479 114 — 593 Selling, general and administrative expenses 8 258 68 — 334 Net legacy and separation-related expenses 3 — — — 3 Equity and other (income) expenses, net — (43) 14 — (29) Operating (loss) income (11) 264 32 — 285 Net pension and other postretirement plan income — (7) — — (7) Net interest and other financing expenses 47 5 3 — 55 (Loss) income before income taxes (58) 266 29 — 237 Income tax (benefit) expense (16) 65 7 — 56 Equity in net income of subsidiaries (223) (22) — 245 — Net income $ 181 $ 223 $ 22 $ (245) $ 181 Total comprehensive income $ 173 $ 215 $ 20 $ (235) $ 173
Condensed Consolidating Balance Sheets	Condensed Consolidating Balance Sheets As of June 30, 2020 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets Cash and cash equivalents $ — $ 577 $ 174 $ — $ 751 Receivables, net 249 47 348 (248) 396 Inventories, net — 106 83 — 189 Prepaid expenses and other current assets 3 39 1 — 43 Total current assets 252 769 606 (248) 1,379 Noncurrent assets Property, plant and equipment, net — 470 89 — 559 Operating lease assets — 220 41 — 261 Goodwill and intangibles, net — 432 78 — 510 Equity method investments — 39 — — 39 Investment in subsidiaries 1,403 557 — (1,960) — Deferred income taxes 68 — 14 — 82 Other noncurrent assets 2 118 13 — 133 Total noncurrent assets 1,473 1,836 235 (1,960) 1,584 Total assets $ 1,725 $ 2,605 $ 841 $ (2,208) $ 2,963 Liabilities and Stockholders’ Deficit Current liabilities Trade and other payables $ — $ 326 $ 100 $ (248) $ 178 Accrued expenses and other liabilities 28 183 43 — 254 Total current liabilities 28 509 143 (248) 432 Noncurrent liabilities Long-term debt 1,855 1 97 — 1,953 Employee benefit obligations — 335 15 — 350 Operating lease liabilities — 203 28 — 231 Other noncurrent liabilities 30 154 1 — 185 Total noncurrent liabilities 1,885 693 141 — 2,719 Commitments and contingencies Stockholders’ (deficit) equity (188) 1,403 557 (1,960) (188) Total liabilities and stockholders’ deficit / equity $ 1,725 $ 2,605 $ 841 $ (2,208) $ 2,963 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 Receivables, 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 nine months ended June 30, 2020 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows provided by operating activities $ (369) $ 632 $ 8 $ — $ 271 Cash flows from investing activities Additions to property, plant and equipment — (66) (28) — (94) Notes receivable, net of repayments — (29) (2) — (31) Acquisitions of business — (18) — — (18) Cash flows used in investing activities — (113) (30) — (143) Cash flows from financing activities Proceeds from borrowings 1,450 — 97 — 1,547 Payments of debt issuance costs and discounts (16) — — — (16) Repayments on borrowings (925) — — — (925) Premium paid to extinguish debt (15) — — — (15) Repurchases of common stock (60) — — — (60) Cash dividends paid (63) — — — (63) Other financing activities (2) (1) — — (3) Cash flows provided by financing activities 369 (1) 97 — 465 Effect of currency exchange rate changes on cash, cash equivalents, and restricted cash — — (1) — (1) Increase in cash, cash equivalents, and restricted cash — 518 74 — 592 Cash, cash equivalents, and restricted cash - beginning of year — 59 100 — 159 Cash, cash equivalents, and restricted cash - end of period $ — $ 577 $ 174 $ — $ 751 Condensed Consolidating Statements of Cash Flows For the nine months ended June 30, 2019 (In millions) Valvoline Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows (used in) provided by operating activities $ (94) $ 98 $ 210 $ — $ 214 Cash flows from investing activities Additions to property, plant and equipment — (60) (13) — (73) Notes receivable, net — — (2) (2) Acquisitions of business — (28) (22) — (50) Other investing activities, net — 1 — — 1 Cash flows used in investing activities — (87) (37) — (124) Cash flows from financing activities Proceeds from borrowings 663 — 82 — 745 Payments of debt issuance costs and discounts (2) — — — (2) Repayments on borrowings (505) — (222) — (727) Cash dividends paid (60) — — — (60) Other financing activities (2) (2) (1) — (5) Cash flows provided by (used in) financing activities 94 (2) (141) — (49) Effect of currency exchange rate changes on cash, cash equivalents, and restricted cash — — — — — Increase in cash, cash equivalents, and restricted cash — 9 32 — 41 Cash, cash equivalents, and restricted cash - beginning of year — 20 76 — 96 Cash, cash equivalents, and restricted cash - end of period $ — $ 29 $ 108 $ — $ 137

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	Jun. 30, 2020	Sep. 30, 2019
Leases [Abstract]
Operating lease assets	$ 261	$ 0
Finance lease assets	66
Amortization of finance lease assets	(8)
Total leased assets	319
Operating lease liabilities, current	32
Finance lease liabilities, current	3
Operating lease liabilities, noncurrent	231	$ 0
Finance lease liabilities, noncurrent	60
Total lease liabilities	$ 326

Leasing - Schedule of Lease Cos

Leasing - Schedule of Lease Costs (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Jun. 30, 2020	Jun. 30, 2020
Leases [Abstract]
Operating Lease, Cost	$ 11	$ 33
Lease, Cost [Abstract]
Finance Lease, Right-of-Use Asset, Amortization	1	2
Finance Lease, Interest Expense	1	3
Variable Lease, Cost	1	3
Sublease Income	(1)	(4)
Lease, Cost, Total	13	37
Operating cash flows from finance leases	0	2
Financing cash flow from finance leases	1	1
Leased assets obtained in exchange for operating leases	14	42
Leased assets obtained in exchange for finance leases	$ 20	$ 38

Leasing - Schedule of Other Inf

Leasing - Schedule of Other Information Related to Leases (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Jun. 30, 2020	Jun. 30, 2020
Leases [Abstract]
Operating cash flows from operating leases (a)	$ 11	$ 32
Operating cash flows from finance leases	0	2
Financing cash flow from finance leases	1	1
Leased assets obtained in exchange for operating leases	14	42
Leased assets obtained in exchange for finance leases	$ 20	$ 38

Leasing - Schedule of Future Le

Leasing - Schedule of Future Lease Payments for Operating and Finance Leases After Adoption (Details) $ in Millions	Jun. 30, 2020USD ($)
Operating leases
Remainder of 2020	$ 11
2021	41
2022	39
2023	35
2024	31
Thereafter	166
Total future lease payments	323
Imputed interest	60
Present value of lease liabilities	263
Finance leases
Remainder of 2020	1
2021	7
2022	7
2023	7
2024	7
Thereafter	67
Total future lease payments	96
Imputed interest	33
Present value of lease liabilities	63
Undiscounted future lease payments for leases not yet commenced	$ 52
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)	Jun. 30, 2020
Leases [Abstract]
Weighted average remaining lease term, operating leases	9 years 8 months 12 days
Weighted average remaining lease term, finance leases	13 years 3 months 18 days
Weighted average discount rate, operating leases	4.09%
Weighted average discount rate, finance leases	7.45%

Leasing - Future Minimum Rental

Leasing - Future Minimum Rental Payments Before Adoption (Details) - USD ($) $ in Millions	Jun. 30, 2020	Sep. 30, 2019
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
Undiscounted future lease payments for leases not yet commenced	$ 52

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Assets and Liabilities at Fair Value (Details) - USD ($) $ in Millions	Jul. 28, 2020	Jun. 30, 2020	Sep. 30, 2019
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument
Accrued expenses and other liabilities
Derivative, Notional Amount		$ 125	$ 111
Interest Rate Swap [Member]
Accrued expenses and other liabilities
Derivative, Notional Amount	$ 100	175
Fair Value, Measurements, Recurring
Other noncurrent assets
Total assets at fair value		473	79
Accrued expenses and other liabilities
Total liabilities at fair value		3	0
Fair Value, Measurements, Recurring | Level 1
Other noncurrent assets
Non-qualified trust funds		17	20
Fair Value, Measurements, Recurring | Level 1 | Money market funds
Cash and cash equivalents
Cash and cash equivalents		294	0
Fair Value, Measurements, Recurring | Level 2 | Foreign Exchange Contract [Member]
Prepaid expenses and other current assets
Currency derivatives		3	0
Accrued expenses and other liabilities
Derivatives		3	0
Fair Value, Measurements, Recurring | Level 2 | Interest Rate Swap [Member]
Accrued expenses and other liabilities
Derivatives		0	0
Fair Value, Measurements, Recurring | Level 2 | Time deposits
Cash and cash equivalents
Cash and cash equivalents		$ 159	$ 59

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value of Debt (Details) - USD ($) $ in Millions	Jun. 30, 2020	May 22, 2020	Sep. 30, 2019
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Unamortized discount and issuance costs	$ 20	$ 2	$ 9
Level 2 | Fair value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	1,403		797
Level 2 | Fair value | Senior Notes | 2024 Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	0		390
Level 2 | Fair value | Senior Notes | 2025 Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	806		407
Level 2 | Fair value | Senior Notes | Senior Unsecured Notes Due 2030 [Domain]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	597		0
Level 2 | Carrying value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	1,381		766
Unamortized discount and issuance costs	(19)		(9)
Level 2 | Carrying value | Senior Notes | 2024 Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	0		371
Unamortized discount and issuance costs	0		(4)
Level 2 | Carrying value | Senior Notes | 2025 Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	789		395
Unamortized discount and issuance costs	(11)		(5)
Level 2 | Carrying value | Senior Notes | Senior Unsecured Notes Due 2030 [Domain]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	592		0
Unamortized discount and issuance costs	$ (8)		$ 0

Acquisitions and Divestitures -

Acquisitions and Divestitures - Narrative (Details) $ in Millions	9 Months Ended
	Jun. 30, 2020USD ($)service_center_store	Jun. 30, 2019USD ($)service_center_store
Business Acquisition [Line Items]
Number of service center stores acquired | service_center_store	21	54
Consideration for acquisition | $	$ 18	$ 50
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
Business Acquisition, Number of Former Franchise Service Centers | service_center_store	11
Proceeds from sale of operations | $	$ 3

Acquisitions and Divestitures_2

Acquisitions and Divestitures - Summary of Consideration Paid and Assets and Liabilities Acquired (Details) - USD ($) $ in Millions	9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Business Acquisition [Line Items]
Property, plant and equipment	$ 1	$ 3
Goodwill	8	34
Net assets acquired	$ 18	50
Finite-Lived Intangible Assets [Line Items]
Weighted average amortization period	10 years
Reacquired franchise rights
Business Acquisition [Line Items]
Intangible assets	$ 9	5
Customer relationships
Business Acquisition [Line Items]
Intangible assets	0	5
Trademarks and trade names
Business Acquisition [Line Items]
Intangible assets	0	1
Other
Business Acquisition [Line Items]
Intangible assets	$ 0	$ 2

Goodwill and Other Intangible_2

Goodwill and Other Intangibles - Summary of Goodwill by Segment (Details) $ in Millions	9 Months Ended
	Jun. 30, 2020USD ($)
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 430
Acquisitions	8
Currency translation	(1)
Goodwill, Written off Related to Sale of Business Unit	3
Goodwill, ending balance	434
Quick Lubes
Goodwill [Roll Forward]
Goodwill, beginning balance	301
Acquisitions	8
Currency translation	(1)
Goodwill, Written off Related to Sale of Business Unit	3
Goodwill, ending balance	305
Core North America
Goodwill [Roll Forward]
Goodwill, beginning balance	89
Acquisitions	0
Currency translation	0
Goodwill, Written off Related to Sale of Business Unit	0
Goodwill, ending balance	89
International
Goodwill [Roll Forward]
Goodwill, beginning balance	40
Acquisitions	0
Currency translation	0
Goodwill, Written off Related to Sale of Business Unit	0
Goodwill, ending balance	$ 40

Restructuring Activities - Narr

Restructuring Activities - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Restructuring Cost and Reserve [Line Items]
Cumulative Restructuring Charges		$ 13
Employee termination benefits
Restructuring Cost and Reserve [Line Items]
Expenses recognized during the period	$ 4	$ 1	$ 10

Restructuring Activities - Sche

Restructuring Activities - Schedule of Restructuring Activity (Details) - Employee termination benefits - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Restructuring Reserve [Roll Forward]
Balance at September 30, 2019		$ 9
Payments		(6)
Balance at June 30, 2020		4
Expenses recognized during the period	$ 4	$ 1	$ 10

Debt - Schedule of Short-Term B

Debt - Schedule of Short-Term Borrowings and Long Term Debt (Details) - USD ($)	Jun. 30, 2020	May 22, 2020	Feb. 25, 2020	Sep. 30, 2019
Debt Instrument [Line Items]
Current portion of long-term debt	$ 0			$ 15,000,000
Long-term debt	1,953,000,000			1,327,000,000
Other Long -term debt	8,000,000			1,000,000
Debt issuance costs and discounts	(20,000,000)	$ (2,000,000)		(9,000,000)
Total debt	1,953,000,000			1,342,000,000
Debt Acquired through Acquisitions [Member]
Debt Instrument [Line Items]
Other Long -term debt	1,000,000			1,000,000
Senior Unsecured Notes Due 2030 [Domain] | Senior Notes
Debt Instrument [Line Items]
Aggregate principal amount			$ 600,000,000	0
2025 Notes | Senior Notes
Debt Instrument [Line Items]
Aggregate principal amount	800,000,000
Debt gross	800,000,000	$ 400,000,000		400,000,000
2024 Notes | Senior Notes
Debt Instrument [Line Items]
Debt gross	0		$ 375,000,000	375,000,000
Term Loan | Line of Credit | Secured Debt
Debt Instrument [Line Items]
Debt gross	475,000,000			575,000,000
Trade Receivables Facility | Line of Credit | Secured Debt
Debt Instrument [Line Items]
Long-term debt	90,000,000			0
2019 Revolver
Debt Instrument [Line Items]
Letters of credit outstanding	7,000,000
2019 Revolver | Line of Credit | Revolver
Debt Instrument [Line Items]
Long-term debt	0			$ 0
Construction Credit Facility [Member] | CHINA
Debt Instrument [Line Items]
Long-term debt	$ 7,000,000

Debt - Senior Notes (Details)

Debt - Senior Notes (Details) - USD ($)	May 22, 2020	Feb. 25, 2020	Jun. 30, 2020	Jun. 30, 2019	Sep. 30, 2019	Apr. 12, 2019	Aug. 31, 2017	Jul. 31, 2016
Debt Instrument [Line Items]
Gain (loss) on extinguishment of debt			$ 19,000,000	$ 0
Payment for debt extinguishment or debt prepayment cost			15,000,000	0
Proceeds from borrowings	$ 393,000,000	$ 592,000,000
Repayments of senior debt		394,000,000
Repayments on borrowings			925,000,000	$ 727,000,000
Debt issuance costs and discounts	$ 2,000,000		20,000,000		$ 9,000,000
Senior Notes | 2024 Notes
Debt Instrument [Line Items]
Interest rate on senior unsecured notes								5.50%
Payment for debt extinguishment or debt prepayment cost			15,000,000
Debt gross		$ 375,000,000	0		375,000,000
Senior Notes | 2025 Notes
Debt Instrument [Line Items]
Interest rate on senior unsecured notes	4.375%						4.375%
Aggregate principal amount			800,000,000
Debt gross	$ 400,000,000		800,000,000		400,000,000
Debt issuance amount percent of principal	99.50%
Senior Notes | Senior Unsecured Notes Due 2030 [Domain]
Debt Instrument [Line Items]
Interest rate on senior unsecured notes		4.25%
Aggregate principal amount		$ 600,000,000			0
Line of Credit | 2019 Term Loans
Debt Instrument [Line Items]
Repayments on borrowings			100,000,000
Line of Credit | 2019 Revolver | Revolver
Debt Instrument [Line Items]
Repayments of long-term debt			450,000,000
Original principal amount of debt						$ 475,000,000
Long-term debt			0		$ 0
Borrowings from revolving credit facility			$ 450,000,000

Debt - Senior Credit Agreement

Debt - Senior Credit Agreement (Details) - USD ($)	9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Apr. 12, 2019
Debt Instrument [Line Items]
Repayments on borrowings	$ 925,000,000	$ 727,000,000
2019 Revolver
Debt Instrument [Line Items]
Letters of credit outstanding	7,000,000
2019 Term Loans | Line of Credit
Debt Instrument [Line Items]
Original principal amount of debt			$ 575,000,000
Revolver | 2019 Revolver | Line of Credit
Debt Instrument [Line Items]
Original principal amount of debt			$ 475,000,000
Borrowings from revolving credit facility	450,000,000
Repayments of long-term debt	450,000,000
Total borrowing capacity remaining	$ 468,000,000

Debt - Trade Receivables Facili

Debt - Trade Receivables Facility (Details) - USD ($)	May 22, 2020	Apr. 22, 2020	Feb. 25, 2020	Jun. 30, 2020	Sep. 30, 2019
Debt Instrument [Line Items]
Proceeds from borrowings	$ 393,000,000		$ 592,000,000
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				90,000,000	$ 0
Proceeds from borrowings				90,000,000
Total borrowing capacity remaining				85,000,000
Line of Credit | Trade Receivables Facility | Secured Debt | Financing Subsidiary
Debt Instrument [Line Items]
Accounts receivable pledged as collateral				$ 267,000,000	$ 259,000,000
Line of Credit | Trade Accounts Receivable [Member] | Secured Debt
Debt Instrument [Line Items]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage		50.00%

Debt - China Credit Facility (D

Debt - China Credit Facility (Details) - CHINA - Construction Credit Facility [Member] - USD ($) $ in Millions	Jun. 30, 2020	May 06, 2020
Line of Credit Facility [Line Items]
Long-term debt	$ 7
Total borrowing capacity remaining	$ 33
Original principal amount of debt		$ 40

Income Taxes - Schedule of Inco

Income Taxes - Schedule of Income Tax Expense and Effective Tax Rate (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Income tax expense	$ 19	$ 20	$ 68	$ 56
Effective tax rate percentage	24.40%	23.50%	25.90%	23.60%

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) $ in Millions	Sep. 30, 2020USD ($)
Forecast
Operating Loss Carryforwards [Line Items]
Deferred Tax Assets, Tax Deferred Expense	$ 30

Employee Benefit Plans - Compon

Employee Benefit Plans - Components of Pension and Other Postretirement Benefit Income (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Pension benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 1	$ 0	$ 2	$ 1
Interest cost	15	21	46	61
Expected return on plan assets	(21)	(20)	(65)	(60)
Amortization of prior service credit	0	0	0	0
Net periodic benefit (income) cost	(5)	1	(17)	2
Other postretirement benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	0	0	0	0
Interest cost	0	0	1	1
Expected return on plan assets	0	0	0	0
Amortization of prior service credit	(3)	(3)	(9)	(9)
Net periodic benefit (income) cost	$ (3)	$ (3)	$ (8)	$ (8)

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended						9 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Jun. 30, 2020	Jun. 30, 2019
Numerator
Net income	$ 59	$ 63	$ 73	$ 65	$ 63	$ 53	$ 195	$ 181
Denominator
Weighted-average common shares outstanding (shares)	186			189			187	189
Effect of potentially dilutive securities (shares)	0			0			1	0
Weighted average diluted shares outstanding (shares)	186			189			188	189
Earnings per share
Basic (usd per share)	$ 0.32			$ 0.34			$ 1.04	$ 0.96
Diluted (usd per share)	$ 0.32			$ 0.34			$ 1.04	$ 0.96
Shares excluded from diluted earnings per share calculation due to anti-dilutive effect (shares)	2			1			1	2

Reportable Segment Informatio_2

Reportable Segment Information - Narrative (Details)	9 Months Ended
	Jun. 30, 2020numberOfCountriesnumberOfSegments
Segment Reporting Information [Line Items]
Number of reportable segments | numberOfSegments	3
Non-US
Segment Reporting Information [Line Items]
Number of countries where our products are sold | numberOfCountries	140

Reportable Segment Informatio_3

Reportable Segment Information - Sales and Operating Income by Reportable Segment (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Segment Reporting Information [Line Items]
Sales	$ 516	$ 613	$ 1,701	$ 1,761
Operating income	88	102	309	285
Operating Segments
Segment Reporting Information [Line Items]
Operating income	99	106	308	300
Unallocated and Other
Segment Reporting Information [Line Items]
Operating income	(11)	(4)	1	(15)
Quick Lubes
Segment Reporting Information [Line Items]
Sales	199	211	629	600
Quick Lubes | Operating Segments
Segment Reporting Information [Line Items]
Sales	199	211	629	600
Operating income	36	48	114	130
Core North America
Segment Reporting Information [Line Items]
Sales	207	260	693	735
Core North America | Operating Segments
Segment Reporting Information [Line Items]
Sales	207	260	693	735
Operating income	51	38	144	109
International
Segment Reporting Information [Line Items]
Sales	110	142	379	426
International | Operating Segments
Segment Reporting Information [Line Items]
Sales	110	142	379	426
Operating income	$ 12	$ 20	$ 50	$ 61

Reportable Segment Informatio_4

Reportable Segment Information - Disaggregation of Revenues by Reportable Segments (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Segment Reporting Information [Line Items]
Sales	$ 516	$ 613	$ 1,701	$ 1,761
Quick Lubes
Segment Reporting Information [Line Items]
Sales	199	211	629	600
Quick Lubes | Operating Segments
Segment Reporting Information [Line Items]
Sales	199	211	629	600
Quick Lubes | Company-owned operations | Operating Segments
Segment Reporting Information [Line Items]
Sales	139	136	421	388
Quick Lubes | Non-company owned operations | Operating Segments
Segment Reporting Information [Line Items]
Sales	60	75	208	212
Core North America
Segment Reporting Information [Line Items]
Sales	207	260	693	735
Core North America | Operating Segments
Segment Reporting Information [Line Items]
Sales	207	260	693	735
Core North America | Retail | Operating Segments
Segment Reporting Information [Line Items]
Sales	137	143	407	399
Core North America | Installer and other | Operating Segments
Segment Reporting Information [Line Items]
Sales	70	117	286	336
International
Segment Reporting Information [Line Items]
Sales	110	142	379	426
International | Operating Segments
Segment Reporting Information [Line Items]
Sales	$ 110	$ 142	$ 379	$ 426

Reportable Segment Informatio_5

Reportable Segment Information - Disaggregation of Revenues by Geographical Market (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Segment Reporting Information [Line Items]
Sales	$ 516	$ 613	$ 1,701	$ 1,761
North America
Segment Reporting Information [Line Items]
Sales	406	471	1,322	1,335
EMEA
Segment Reporting Information [Line Items]
Sales	34	43	125	134
Asia Pacific
Segment Reporting Information [Line Items]
Sales	65	72	193	212
Latin America
Segment Reporting Information [Line Items]
Sales	11	27	61	80
Quick Lubes
Segment Reporting Information [Line Items]
Sales	199	211	629	600
Quick Lubes | North America
Segment Reporting Information [Line Items]
Sales	199	211	629	600
Quick Lubes | EMEA
Segment Reporting Information [Line Items]
Sales	0	0	0	0
Quick Lubes | Asia Pacific
Segment Reporting Information [Line Items]
Sales	0	0	0	0
Quick Lubes | Latin America
Segment Reporting Information [Line Items]
Sales	0	0	0	0
Core North America
Segment Reporting Information [Line Items]
Sales	207	260	693	735
Core North America | North America
Segment Reporting Information [Line Items]
Sales	207	260	693	735
Core North America | EMEA
Segment Reporting Information [Line Items]
Sales	0	0	0	0
Core North America | Asia Pacific
Segment Reporting Information [Line Items]
Sales	0	0	0	0
Core North America | Latin America
Segment Reporting Information [Line Items]
Sales	0	0	0	0
International
Segment Reporting Information [Line Items]
Sales	110	142	379	426
International | North America
Segment Reporting Information [Line Items]
Sales	0	0	0	0
International | EMEA
Segment Reporting Information [Line Items]
Sales	34	43	125	134
International | Asia Pacific
Segment Reporting Information [Line Items]
Sales	65	72	193	212
International | Latin America
Segment Reporting Information [Line Items]
Sales	$ 11	$ 27	$ 61	$ 80

Supplemental Financial Inform_3

Supplemental Financial Information - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions	Jun. 30, 2020	Sep. 30, 2019	Jun. 30, 2019	Sep. 30, 2018
Supplemental Financial Information [Abstract]
Cash and cash equivalents	$ 751	$ 159	$ 126
Restricted cash	0	0	11
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	$ 751	$ 159	$ 137	$ 96

Supplemental Financial Inform_4

Supplemental Financial Information - Summary of Accounts Receivable (Details) - USD ($) $ in Millions	Jun. 30, 2020	Sep. 30, 2019
Supplemental Financial Information [Abstract]
Accounts Receivable, Trade Receivables, Current	$ 377	$ 392
Accounts Receivable, Other Receivables, Current	15	15
Financing Receivable, before Allowance for Credit Loss	11	0
Receivables Gross, Current	403	407
Allowance for Doubtful Accounts, Premiums and Other Receivables	(7)	(6)
Receivables, Net, Current	396	401
Financing Receivable, before Allowance for Credit Loss, Noncurrent	18	0
Notes Receivable, Noncurrent	7	5
Notes Receivable, Gross, Noncurrent	25	5
Accounts and Financing Receivable, Allowance for Credit Loss	(2)	(2)
Accounts and Financing Receivable, after Allowance for Credit Loss, Noncurrent	$ 23	$ 3

Supplemental Financial Inform_5

Supplemental Financial Information - Narrative (Details) - USD ($) $ in Millions	9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Supplemental Financial Information [Abstract]
Accounts receivable sold to financial institutions	$ 59	$ 63

Supplemental Financial Inform_6

Supplemental Financial Information - Inventory (Details) - USD ($) $ in Millions	Jun. 30, 2020	Sep. 30, 2019
Supplemental Financial Information [Abstract]
Inventory, Finished Goods, Gross	$ 187	$ 203
Inventory, Work in Process and Raw Materials	31	32
Inventory, LIFO Reserve	(29)	(41)
Inventories, net	$ 189	$ 194

Supplemental Financial Inform_7

Supplemental Financial Information - Revenue Recognition and Deferred Revenue (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Accounts Receivable, non current [Line Items]
Sales	$ 516	$ 613	$ 1,701	$ 1,761
Transferred at Point in Time [Member]
Accounts Receivable, non current [Line Items]
Sales	508	602	1,673	1,730
Transferred over Time [Member]
Accounts Receivable, non current [Line Items]
Sales	$ 8	$ 11	$ 28	$ 31

Guarantor Financial Informati_3

Guarantor Financial Information - Condensed Consolidating Statements of Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended						9 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Jun. 30, 2020	Jun. 30, 2019
Net Income (Loss) Attributable to Parent [Abstract]
Sales	$ 516			$ 613			$ 1,701	$ 1,761
Cost of sales	329			406			1,096	1,168
Gross profit	187			207			605	593
Selling, general and administrative expenses	106			116			319	334
Net legacy and separation-related expenses	1			0			0	3
Equity and other (income) expenses, net	(8)			(11)			(23)	(29)
Operating income	88			102			309	285
Net pension and other postretirement plan income	(9)			(2)			(27)	(7)
Net interest and other financing expenses	19			19			73	55
Income before income taxes	78			85			263	237
Income tax (benefit) expense	19			20			68	56
Equity in net income of subsidiaries	0			0			0	0
Net income	59	$ 63	$ 73	65	$ 63	$ 53	195	181
Comprehensive income	66			63			185	173
Eliminations
Net Income (Loss) Attributable to Parent [Abstract]
Sales	(7)			(18)			(32)	(50)
Cost of sales	(7)			(18)			(32)	(50)
Gross profit	0			0			0	0
Selling, general and administrative expenses	0			0			0	0
Net legacy and separation-related expenses	0			0			0	0
Equity and other (income) expenses, net	0			0			0	0
Operating income	0			0			0	0
Net pension and other postretirement plan income	0			0			0	0
Net interest and other financing expenses	0			0			0	0
Income before income taxes	0			0			0	0
Income tax (benefit) expense	0			0			0	0
Equity in net income of subsidiaries	79			88			267	245
Net income	(79)			(88)			(267)	(245)
Comprehensive income	(97)			(87)			(255)	(235)
Valvoline Inc. (Parent Issuer) | Reportable Legal Entities
Net Income (Loss) Attributable to Parent [Abstract]
Sales	0			0			0	0
Cost of sales	0			0			0	0
Gross profit	0			0			0	0
Selling, general and administrative expenses	4			3			7	8
Net legacy and separation-related expenses	0			0			(1)	3
Equity and other (income) expenses, net	0			0			0	0
Operating income	(4)			(3)			(6)	(11)
Net pension and other postretirement plan income	0			0			0	0
Net interest and other financing expenses	17			17			68	47
Income before income taxes	(21)			(20)			(74)	(58)
Income tax (benefit) expense	(7)			(5)			(21)	(16)
Equity in net income of subsidiaries	(73)			(80)			(248)	(223)
Net income	59			65			195	181
Comprehensive income	66			63			185	173
Guarantor Subsidiaries | Reportable Legal Entities
Net Income (Loss) Attributable to Parent [Abstract]
Sales	409			491			1,357	1,396
Cost of sales	255			324			861	917
Gross profit	154			167			496	479
Selling, general and administrative expenses	80			87			243	258
Net legacy and separation-related expenses	1			0			1	0
Equity and other (income) expenses, net	(10)			(16)			(36)	(43)
Operating income	83			96			288	264
Net pension and other postretirement plan income	(9)			(2)			(27)	(7)
Net interest and other financing expenses	1			2			4	5
Income before income taxes	91			96			311	266
Income tax (benefit) expense	24			24			82	65
Equity in net income of subsidiaries	(6)			(8)			(19)	(22)
Net income	73			80			248	223
Comprehensive income	80			78			238	215
Non-Guarantor Subsidiaries | Reportable Legal Entities
Net Income (Loss) Attributable to Parent [Abstract]
Sales	114			140			376	415
Cost of sales	81			100			267	301
Gross profit	33			40			109	114
Selling, general and administrative expenses	22			26			69	68
Net legacy and separation-related expenses	0			0			0	0
Equity and other (income) expenses, net	2			5			13	14
Operating income	9			9			27	32
Net pension and other postretirement plan income	0			0			0	0
Net interest and other financing expenses	1			0			1	3
Income before income taxes	8			9			26	29
Income tax (benefit) expense	2			1			7	7
Equity in net income of subsidiaries	0			0			0	0
Net income	6			8			19	22
Comprehensive income	$ 17			$ 9			$ 17	$ 20

Guarantor Financial Informati_4

Guarantor Financial Information - Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018
Assets, Current [Abstract]
Cash and cash equivalents	$ 751			$ 159	$ 126
Receivables, Net, Current	396			401
Inventories, net	189			194
Prepaid expenses and other current assets	43			43
Total current assets	1,379			797
Noncurrent assets
Property, plant and equipment, net	559			498
Operating lease assets	261			0
Goodwill and intangibles, net	510			504
Equity method investments	39			34
Investment in subsidiaries	0			0
Deferred income taxes	82			123
Other noncurrent assets	133			108
Total noncurrent assets	1,584			1,267
Total assets	2,963			2,064
Current liabilities
Current portion of long-term debt	0			15
Trade and other payables	178			171
Accrued expenses and other liabilities	254			237
Total current liabilities	432			423
Noncurrent liabilities
Long-term debt	1,953			1,327
Employee benefit obligations	350			387
Operating lease liabilities, noncurrent	231			0
Other noncurrent liabilities	185			185
Total noncurrent liabilities	2,719			1,899
Commitments and contingencies
Stockholders’ (deficit) equity	(188)	$ (237)	$ (196)	(258)	$ (252)	$ (298)	$ (343)	$ (358)
Total liabilities and stockholders’ deficit	2,963			2,064
Present value of lease liabilities	263
Eliminations
Assets, Current [Abstract]
Cash and cash equivalents	0			0
Receivables, Net, Current	(248)			(118)
Inventories, net	0			0
Prepaid expenses and other current assets	0			0
Total current assets	(248)			(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	(1,960)			(1,703)
Deferred income taxes	0			0
Other noncurrent assets	0			0
Total noncurrent assets	(1,960)			(1,703)
Total assets	(2,208)			(1,821)
Current liabilities
Current portion of long-term debt				0
Trade and other payables	(248)			(118)
Accrued expenses and other liabilities	0			0
Total current liabilities	(248)			(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	(1,960)			(1,703)
Total liabilities and stockholders’ deficit	(2,208)			(1,821)
Valvoline Inc. (Parent Issuer) | Reportable Legal Entities
Assets, Current [Abstract]
Cash and cash equivalents	0			0
Receivables, Net, Current	249			0
Inventories, net	0			0
Prepaid expenses and other current assets	3			0
Total current assets	252			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	1,403			1,157
Deferred income taxes	68			48
Other noncurrent assets	2			3
Total noncurrent assets	1,473			1,208
Total assets	1,725			1,208
Current liabilities
Current portion of long-term debt				15
Trade and other payables	0			80
Accrued expenses and other liabilities	28			9
Total current liabilities	28			104
Noncurrent liabilities
Long-term debt	1,855			1,326
Employee benefit obligations	0			0
Operating lease liabilities, noncurrent	0
Other noncurrent liabilities	30			36
Total noncurrent liabilities	1,885			1,362
Stockholders’ (deficit) equity	(188)			(258)
Total liabilities and stockholders’ deficit	1,725			1,208
Guarantor Subsidiaries | Reportable Legal Entities
Assets, Current [Abstract]
Cash and cash equivalents	577			59
Receivables, Net, Current	47			181
Inventories, net	106			110
Prepaid expenses and other current assets	39			35
Total current assets	769			385
Noncurrent assets
Property, plant and equipment, net	470			431
Operating lease assets	220
Goodwill and intangibles, net	432			423
Equity method investments	39
Investment in subsidiaries	557			546
Deferred income taxes	0			61
Other noncurrent assets	118			96
Total noncurrent assets	1,836			1,591
Total assets	2,605			1,976
Current liabilities
Current portion of long-term debt				0
Trade and other payables	326			127
Accrued expenses and other liabilities	183			175
Total current liabilities	509			302
Noncurrent liabilities
Long-term debt	1			1
Employee benefit obligations	335			369
Operating lease liabilities, noncurrent	203
Other noncurrent liabilities	154			147
Total noncurrent liabilities	693			517
Stockholders’ (deficit) equity	1,403			1,157
Total liabilities and stockholders’ deficit	2,605			1,976
Non-Guarantor Subsidiaries | Reportable Legal Entities
Assets, Current [Abstract]
Cash and cash equivalents	174			100
Receivables, Net, Current	348			338
Inventories, net	83			84
Prepaid expenses and other current assets	1			8
Total current assets	606			530
Noncurrent assets
Property, plant and equipment, net	89			67
Operating lease assets	41
Goodwill and intangibles, net	78			81
Equity method investments	0			0
Investment in subsidiaries	0			0
Deferred income taxes	14			14
Other noncurrent assets	13			9
Total noncurrent assets	235			171
Total assets	841			701
Current liabilities
Current portion of long-term debt				0
Trade and other payables	100			82
Accrued expenses and other liabilities	43			53
Total current liabilities	143			135
Noncurrent liabilities
Long-term debt	97			0
Employee benefit obligations	15			18
Operating lease liabilities, noncurrent	28
Other noncurrent liabilities	1			2
Total noncurrent liabilities	141			20
Stockholders’ (deficit) equity	557			546
Total liabilities and stockholders’ deficit	$ 841			$ 701

Guarantor Financial Informati_5

Guarantor Financial Information - Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Mar. 31, 2020	Jun. 30, 2020	Jun. 30, 2019
Condensed Cash Flow Statements, Captions [Line Items]
Cash flows provided by operating activities		$ 271	$ 214
Cash flows from investing activities
Additions to property, plant and equipment		(94)	(73)
Notes receivable, net		31	2
Acquisitions of business		(18)	(50)
Other investing activities, net		0	1
Total cash used in investing activities		(143)	(124)
Cash flows from financing activities
Proceeds from borrowings		1,547	745
Payments of debt issuance costs and discounts		(16)	(2)
Repayments on borrowings		(925)	(727)
Payment for debt extinguishment or debt prepayment cost		15	0
Repurchases of common stock	$ (60)	(60)	0
Cash dividends paid		(63)	(60)
Other financing activities		(3)	(5)
Total cash provided by (used in) financing activities		465	(49)
Effect of currency exchange rate changes on cash, cash equivalents, and restricted cash		(1)	0
Increase (decrease) in cash, cash equivalents, and restricted cash		592	41
Cash, cash equivalents, and restricted cash - beginning of period		159	96
Cash, cash equivalents, and restricted cash - end of period		751	137
Proceeds from sale of operations		3
Reportable Legal Entities | Valvoline Inc. (Parent Issuer)
Condensed Cash Flow Statements, Captions [Line Items]
Cash flows provided by operating activities		(369)	(94)
Cash flows from investing activities
Additions to property, plant and equipment		0	0
Notes receivable, net		0	0
Acquisitions of business		0	0
Other investing activities, net			0
Total cash used in investing activities		0	0
Cash flows from financing activities
Proceeds from borrowings		1,450	663
Payments of debt issuance costs and discounts		(16)	(2)
Repayments on borrowings		(925)	(505)
Payment for debt extinguishment or debt prepayment cost		15
Repurchases of common stock		(60)
Cash dividends paid		(63)	(60)
Other financing activities		(2)	(2)
Total cash provided by (used in) financing activities		369	94
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		632	98
Cash flows from investing activities
Additions to property, plant and equipment		(66)	(60)
Notes receivable, net		29	0
Acquisitions of business		(18)	(28)
Other investing activities, net			1
Total cash used in investing activities		(113)	(87)
Cash flows from financing activities
Proceeds from borrowings		0	0
Payments of debt issuance costs and discounts		0	0
Repayments on borrowings		0	0
Payment for debt extinguishment or debt prepayment cost		0
Repurchases of common stock		0
Cash dividends paid		0	0
Other financing activities		(1)	(2)
Total cash provided by (used in) financing activities		(1)	(2)
Effect of currency exchange rate changes on cash, cash equivalents, and restricted cash		0	0
Increase (decrease) in cash, cash equivalents, and restricted cash		518	9
Cash, cash equivalents, and restricted cash - beginning of period		59	20
Cash, cash equivalents, and restricted cash - end of period		577	29
Reportable Legal Entities | Non-Guarantor Subsidiaries
Condensed Cash Flow Statements, Captions [Line Items]
Cash flows provided by operating activities		8	210
Cash flows from investing activities
Additions to property, plant and equipment		(28)	(13)
Notes receivable, net		2	2
Acquisitions of business		0	(22)
Other investing activities, net			0
Total cash used in investing activities		(30)	(37)
Cash flows from financing activities
Proceeds from borrowings		97	82
Payments of debt issuance costs and discounts		0	0
Repayments on borrowings		0	(222)
Payment for debt extinguishment or debt prepayment cost		0
Repurchases of common stock		0
Payments for purchase of additional ownership in subsidiary			(1)
Cash dividends paid		0	0
Other financing activities		0
Total cash provided by (used in) financing activities		97	(141)
Effect of currency exchange rate changes on cash, cash equivalents, and restricted cash		(1)	0
Increase (decrease) in cash, cash equivalents, and restricted cash		74	32
Cash, cash equivalents, and restricted cash - beginning of period		100	76
Cash, cash equivalents, and restricted cash - end of period		174	108
Reportable Legal Entities | Eliminations
Cash flows from financing activities
Payment for debt extinguishment or debt prepayment cost		0
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
Notes receivable, net		0
Acquisitions of business		0	0
Other investing activities, net			0
Total cash used in investing activities		0	0
Cash flows from financing activities
Proceeds from borrowings		0	0
Payments of debt issuance costs and discounts		0	0
Repayments on borrowings		0	0
Repurchases of common stock		0
Cash dividends paid		0	0
Other financing activities		0	0
Total cash provided by (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) - USD ($) $ / shares in Units, $ in Millions	Jul. 23, 2020	Jul. 28, 2020	Jun. 30, 2020
Subsequent Events [Abstract]
Dividend per share (usd per share)	$ 0.113
Interest Rate Swap [Member]
Subsequent Event [Line Items]
Derivative, Notional Amount		$ 100	$ 175