Valvoline (VVV) 10-Q 29 Apr 21 2021 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Mar. 31, 2021	Apr. 23, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2021
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		181,077,542
Entity Central Index Key	0001674910
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Income - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Net Income (Loss) Attributable to Parent [Abstract]
Sales	$ 701	$ 578	$ 1,354	$ 1,185
Cost of sales	454	371	879	767
Gross profit	247	207	475	418
Selling, general and administrative expenses	129	96	246	213
Net legacy and separation-related expenses (income)	0	0	1	(1)
Equity and other income, net	(13)	(6)	(27)	(15)
Operating income	131	117	255	221
Net pension and other postretirement plan income	(14)	(9)	(27)	(18)
Net interest and other financing expenses	55	38	75	54
Income before income taxes	90	88	207	185
Income tax expense	22	25	52	49
Net Income (Loss) Attributable to Parent, Total	$ 68	$ 63	$ 155	$ 136
NET EARNINGS PER SHARE
Basic (usd per share)	$ 0.37	$ 0.33	$ 0.84	$ 0.72
Diluted (usd per share)	$ 0.37	$ 0.33	$ 0.84	$ 0.72
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic (shares)	182	188	184	188
Diluted (shares)	183	188	184	189
COMPREHENSIVE INCOME
Net income	$ 68	$ 63	$ 155	$ 136
Other comprehensive (loss) income, net of tax
Currency translation adjustments	(7)	(21)	11	(13)
Amortization of pension and other postretirement plan prior service credit	(2)	(2)	(4)	(4)
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax	1	0	1	0
Other comprehensive (loss) income	(8)	(23)	8	(17)
Comprehensive income	$ 60	$ 40	$ 163	$ 119

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Mar. 31, 2021	Sep. 30, 2020
Assets, Current [Abstract]
Cash and cash equivalents	$ 247	$ 760
Receivables, Net, Current	448	433
Inventories, net	218	199
Prepaid expenses and other current assets	55	46
Total current assets	968	1,438
Noncurrent assets
Property, plant and equipment, net	741	613
Operating Lease, Right-of-Use Asset	299	261
Goodwill and intangibles, net	732	529
Equity method investments	45	44
Deferred income taxes	19	34
Other Assets, Noncurrent	117	132
Total noncurrent assets	1,953	1,613
Total assets	2,921	3,051
Current liabilities
Current portion of long-term debt	1	0
Trade and other payables	180	189
Accrued expenses and other liabilities	267	255
Total current liabilities	448	444
Noncurrent liabilities
Long-term debt	1,719	1,962
Employee benefit obligations	286	317
Operating lease liabilities, noncurrent	265	231
Other noncurrent liabilities	259	173
Total noncurrent liabilities	2,529	2,683
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; 181 and 185 shares issued and outstanding at March 31, 2021 and September 30, 2020, respectively	2	2
Paid-in capital	29	24
Retained deficit	(103)	(110)
Accumulated other comprehensive income	16	8
Total stockholders’ deficit	(56)	(76)
Total liabilities and stockholders’ deficit	$ 2,921	$ 3,051

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2021	Sep. 30, 2020
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)	181,000,000	185,000,000
Common stock outstanding (shares)	181,000,000	185,000,000

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]	AOCI Attributable to Parent [Member]
Common stock outstanding, at beginning of period (shares) at Sep. 30, 2019			188
Balance at beginning of period at Sep. 30, 2019	$ (258)	$ 1	$ 2	$ 13	$ (284)	$ 11
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	73				73
Dividends paid	(21)				(21)
Stock-based compensation, net of issuances	3			3
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	6					6
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
Balance at beginning of period at Sep. 30, 2019	$ (258)	1	$ 2	13	(284)	11
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	136
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	(17)
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)
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	(60)				(60)
Stock Repurchased and Retired During Period, Shares			3
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	(23)					(23)
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
Common stock outstanding, at beginning of period (shares) at Sep. 30, 2020	185		185
Balance at beginning of period at Sep. 30, 2020	$ (76)	(2)	$ 2	24	(110)	8
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	87				87
Dividends paid	(23)				(23)
Stock-based compensation, net of issuances	1			1
Repurchases of common stock	(58)
Stock Repurchased and Retired During Period, Shares			2
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	16					16
Common stock outstanding, at end of period (shares) at Dec. 31, 2020			183
Balance at end of period at Dec. 31, 2020	$ (55)		$ 2	25	(106)	24
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends paid per common share (usd per share)	$ 0.125
Common stock outstanding, at beginning of period (shares) at Sep. 30, 2020	185		185
Balance at beginning of period at Sep. 30, 2020	$ (76)	$ (2)	$ 2	24	(110)	8
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	155
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	$ 8
Common stock outstanding, at end of period (shares) at Mar. 31, 2021	181		181
Balance at end of period at Mar. 31, 2021	$ (56)		$ 2	29	(103)	16
Common stock outstanding, at beginning of period (shares) at Dec. 31, 2020			183
Balance at beginning of period at Dec. 31, 2020	(55)		$ 2	25	(106)	24
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	68				68
Dividends paid	(23)				(23)
Stock-based compensation, net of issuances	4			4
Repurchases of common stock	(42)				(42)
Stock Repurchased and Retired During Period, Shares			2
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	$ (8)					(8)
Common stock outstanding, at end of period (shares) at Mar. 31, 2021	181		181
Balance at end of period at Mar. 31, 2021	$ (56)		$ 2	$ 29	$ (103)	$ 16
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends paid per common share (usd per share)	$ 0.125

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Deficit (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Dec. 31, 2019
Statement of Stockholders' Equity [Abstract]
Dividends paid per common share (usd per share)	$ 0.125	$ 0.125	$ 0.113	$ 0.113

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash flows from operating activities
Net income	$ 155	$ 136
Adjustments to reconcile net income to cash flows from operating activities
Gain (loss) on extinguishment of debt	36	19
Depreciation and amortization	44	31
Pension contributions	(4)	(5)
Stock-based compensation expense	6	3
Other, net	2	2
Change in assets and liabilities
Receivables	(14)	44
Inventories	(13)	(20)
Payables and accrued liabilities	4	(40)
Other assets and liabilities	(26)	(16)
Total cash provided by operating activities	190	154
Cash flows from investing activities
Additions to property, plant and equipment	(74)	(57)
Notes receivable, net	12	0
Acquisitions of businesses, net of cash acquired	(223)	(11)
Other investing activities, net	9	(3)
Total cash used in investing activities	(276)	(71)
Cash flows from financing activities
Proceeds from borrowings, net of issuance costs	546	1,132
Repayments on borrowings	(800)	(475)
Payment for Debt Extinguishment or Debt Prepayment Cost	(26)	(15)
Repurchases of common stock	(100)	(60)
Cash dividends paid	(46)	(42)
Other financing activities	(5)	(3)
Total cash (used in) provided by financing activities	(431)	537
Effect of currency exchange rate changes on cash, cash equivalents, and restricted cash	4	(4)
Increase (decrease) in cash, cash equivalents, and restricted cash	(513)	616
Cash, cash equivalents, and restricted cash - beginning of period	761	159
Cash, cash equivalents, and restricted cash - end of period	$ 248	$ 775

Basis of Presentation and Signi

Basis of Presentation and Significant Accounting Policies	6 Months Ended
	Mar. 31, 2021
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, 2020. 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. Valvoline has substantially maintained its operations throughout the COVID-19 pandemic to-date and has continued precautionary measures to protect the Company's employees and customers and manage through the currently known impacts on its business. Given the unprecedented nature of the pandemic, the extent of 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 upon adoption. The Financial Accounting Standards Board ("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 below. Recently adopted In June 2016, the FASB issued updated guidance that changes the recognition of credit losses from an incurred or probable loss methodology to a current expected credit loss model that results in the immediate recognition of credit losses that are expected to occur over the life of the financial instruments that are within the scope of the guidance, principally trade and other receivables for Valvoline. The new credit loss guidance was adopted on October 1, 2020 using the required modified retrospective approach. Under this approach, the new accounting guidance is applied prospectively from the date of adoption through a cumulative effect adjustment in retained deficit, while prior period financial statements continue to be reported in accordance with the previous guidance. Adoption did not have a material impact on the Company's condensed consolidated financial statements and resulted in a $2 million, net of tax, cumulative effect of accounting change that increased retained deficit and allowances for credit losses. In connection with and following the adoption of this guidance, Valvoline maintains allowances to estimate expected lifetime credit losses that are based on a broad range of reasonable and supportable information and factors, including the length of time receivables are past due, the financial health of its customers, macroeconomic conditions, and historical collection experience. Refer to Note 11 for additional information regarding the Company's trade and other receivables and its allowances for credit losses. Issued but not yet adopted In March 2020, the FASB issued guidance regarding the effects of reference rate reform intended to ease financial reporting burdens as the market transitions from the London Interbank Offered Rate ("LIBOR") and other interbank reference rates to alternative reference rates. The Company has interest rate swap hedging arrangements and long-term debt as described in Notes 2 and 5 to the Condensed Consolidated Financial Statements, respectively, for which existing payments are based on LIBOR. This guidance is available to be adopted through the end of calendar 2022 to simplify the accounting for arrangements modified for the transition to alternative reference rates.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Mar. 31, 2021
Fair Value Disclosures [Abstract]
Fair Value Measurements	FAIR VALUE MEASUREMENTS The following tables set forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis by level within the fair value hierarchy: As of March 31, 2021 (In millions) Total Level 1 Level 2 Level 3 NAV (a) Cash and cash equivalents Money market funds $ 13 $ 13 $ — $ — $ — Time deposits 74 — 74 — — Prepaid expenses and other current assets Currency derivatives (b) 3 — 3 — — Other noncurrent assets Non-qualified trust funds 13 — 4 — 9 Interest rate swap agreements 2 2 Total assets at fair value $ 105 $ 13 $ 83 $ — $ 9 Accrued expenses and other liabilities Currency derivatives (b) $ 2 $ — $ 2 $ — $ — Interest rate swap agreements 1 — 1 — — Other noncurrent liabilities Deferred compensation obligations 23 — — — 23 Total liabilities at fair value $ 26 $ — $ 3 $ — $ 23 As of September 30, 2020 (In millions) Total Level 1 Level 2 Level 3 NAV (a) Cash and cash equivalents Money market funds $ 296 $ 296 $ — $ — $ — Time deposits 139 — 139 — — Prepaid expenses and other current assets Currency derivatives (b) 3 — 3 — — Other noncurrent assets Non-qualified trust funds 16 — 8 — 8 Total assets at fair value $ 454 $ 296 $ 150 $ — $ 8 Accrued expenses and other liabilities Currency derivatives (b) $ 2 $ — $ 2 $ — $ — Interest rate swap agreements 1 — 1 — — Other noncurrent liabilities Deferred compensation obligations 25 — — — 25 Total liabilities at fair value $ 28 $ — $ 3 $ — $ 25 (a) Funds measured at fair value using the net asset value ("NAV") per share practical expedient have not been classified in the fair value hierarchy. (b) The Company had outstanding contracts with notional values of $173 million and $149 million as of March 31, 2021 and September 30, 2020, respectively. There were no material gains or losses recognized in earnings for the three and six months ended March 31, 2021 or 2020 related to these assets and liabilities. Long-term debt The fair values of the Company’s outstanding fixed rate senior notes shown in the table below are based on recent trading values, which are considered Level 2 inputs within the fair value hierarchy. Long-term debt is included in the Condensed Consolidated Balance Sheets at carrying value, rather than fair value, and is therefore excluded from the fair value table above. Carrying values shown in the following table are net of unamortized discounts and issuance costs. March 31, 2021 September 30, 2020 (In millions) Fair value Carrying value Unamortized Fair value Carrying value Unamortized 2025 Notes $ — $ — $ — $ 827 $ 790 $ (10) 2030 Notes 613 593 (7) 613 592 (8) 2031 Notes 519 528 (7) — — — Total $ 1,132 $ 1,121 $ (14) $ 1,440 $ 1,382 $ (18) Refer to Note 5 for more information on Valvoline’s other debt instruments that have variable interest rates, and accordingly, their carrying amounts approximate fair value.

Acquisitions and Divestitures

Acquisitions and Divestitures	6 Months Ended
	Mar. 31, 2021
Business Combinations [Abstract]
Acquisitions and Divestitures	Retail store acquisitions The Company acquired 100 service center stores in single and multi-store transactions for an aggregate purchase price of $223 million during the six months ended March 31, 2021. These acquisitions expand Valvoline's retail presence in key North American and international markets, increase the Quick Lubes system to more than 650 company-operated and 1,500 system-wide service center stores, and included: • Fourteen company-operated service center stores in Texas acquired from Kent Lubrication Centers Ltd. (doing business as Avis Lube) on October 1, 2020; • Twenty-one former franchise locations converted to company-operated service center stores in Kansas and Missouri acquired from Westco Lube, Inc. on October 15, 2020; • Twelve company-operated service center stores in Idaho acquired from L&F Enterprises (doing business as Einstein's Oilery) on October 30, 2020; • Twenty-seven Mister Oil Change Express® locations (15 company-operated and 12 franchise-operated) across seven states acquired from Car Wash Partners, Inc. on December 11, 2020; • Seven former franchise and 14 former joint venture locations converted to company-operated service center stores acquired in single and multi-store transactions; and • Five company-operated service center stores acquired in single store transactions. During the six months ended March 31, 2020, the Company acquired 14 service center stores in single and multi-store transactions, including six former franchise locations, for a total of $11 million. The Company’s acquisitions are accounted for as business combinations. A summary follows of the aggregate cash consideration paid and the total assets acquired and liabilities assumed for the six months ended March 31: (In millions) 2021 2020 Inventories $ 2 $ — Other current assets 1 — Property, plant and equipment (a) 82 1 Operating lease assets 26 — Goodwill (b) 180 5 Intangible assets (c) Reacquired franchise rights (d) 34 5 Other 3 — Other current liabilities (a) (7) — Operating lease liabilities (24) — Other noncurrent liabilities (a) (74) — Net assets acquired $ 223 $ 11 (a) Includes $73 million of finance lease assets in property, plant and equipment and finance lease liabilities of $3 million and $70 million in other current and noncurrent liabilities, respectively, for leases acquired during the six months ended March 31, 2021. (b) Goodwill is generally expected to be deductible for income tax purposes and is primarily attributed to the operational synergies and potential growth expected to result in economic benefits in the respective markets of the acquisitions. (c) Intangible assets acquired during the six months ended March 31, 2021 and 2020 have weighted average amortization periods of 11 and nine years, respectively. (d) Prior to the acquisition of former franchise service center stores, Valvoline licensed the right to operate franchised quick lube service centers, including use of the Company’s trademarks and trade name. In connection with these acquisitions, Valvoline reacquired those rights and recognized separate definite-lived reacquired franchise rights intangible assets, which are being amortized on a straight-line basis over the weighted average remaining term of approximately 11 years for the rights reacquired in fiscal 2021. The effective settlement of these arrangements resulted in no settlement gain or loss as the contractual terms were at market. The fair values above are preliminary for up to one year from the date of acquisition as they may be subject to measurement period adjustments if new information is obtained about facts and circumstances that existed as of the acquisition date. The Company does not currently expect any material changes to the preliminary purchase price allocations for acquisitions completed during the last twelve months.

Goodwill and Other Intangibles

Goodwill and Other Intangibles	6 Months Ended
	Mar. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Other Intangibles	INTANGIBLE ASSETS Goodwill The following table summarizes changes in the carrying amount of goodwill by reportable segment and in total during the six months ended March 31, 2021: (In millions) Quick Lubes Core North America International Total Balance at September 30, 2020 $ 316 $ 89 $ 40 $ 445 Acquisitions (a) 178 — 2 180 Dispositions (b) (10) — — (10) Currency translation 2 — — 2 Balance at March 31, 2021 $ 486 $ 89 $ 42 $ 617 (a) Includes acquisitions within the Quick Lubes reportable segment of 86 service center stores and a former joint venture in the International reportable segment. Refer to Note 3 for additional details. (b) Derecognition of goodwill associated with the sale of 12 company-owned, franchise-operated service center stores to franchisees. Other intangible assets Valvoline’s purchased intangible assets were specifically identified when acquired, have finite lives, and are reported in Goodwill and intangibles, net within the Condensed Consolidated Balance Sheets. The following summarizes the gross carrying amounts and accumulated amortization of the Company’s intangible assets: (In millions) March 31, 2021 September 30, 2020 Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated amortization Net carrying amount Definite-lived intangible assets Trademarks and trade names $ 31 $ (7) $ 24 $ 30 $ (6) $ 24 Reacquired franchise rights 91 (18) 73 57 (14) 43 Customer relationships 22 (8) 14 22 (7) 15 Other intangible assets 6 (2) 4 3 (1) 2 Total definite-lived intangible assets $ 150 $ (35) $ 115 $ 112 $ (28) $ 84

Debt

Debt	6 Months Ended
	Mar. 31, 2021
Debt Disclosure [Abstract]
Debt	DEBT The following table summarizes Valvoline’s total debt as of: (In millions) March 31 September 30 2031 Notes $ 535 $ — 2030 Notes 600 600 2025 Notes — 800 Term Loan 475 475 Trade Receivables Facility 88 88 China Construction Facility 37 18 Debt issuance costs and discounts (15) (19) Total debt 1,720 1,962 Current portion of long-term debt 1 — Long-term debt $ 1,719 $ 1,962 Senior Notes The Company's outstanding fixed rate senior notes as of March 31, 2021 consist of 3.625% senior unsecured notes due 2031 with an aggregate principal amount of $535 million (the “2031 Notes") and 4.250% senior unsecured notes due 2030 with an aggregate principal amount of $600 million (the "2030 Notes," and collectively with the 2031 Notes, the "Senior Notes"). In January 2021, Valvoline issued the 2031 Notes in a private offering for net proceeds of $528 million (after deducting initial purchasers’ discounts and debt issuance costs). The net proceeds, along with cash and cash equivalents on hand, were used to redeem in full Valvoline's 4.375% senior unsecured notes due 2025 with an aggregate principal amount of $800 million (the “2025 Notes"), plus an early redemption premium of $26 million, accrued and unpaid interest, as well as related fees and expenses for an aggregate redemption price of approximately $840 million. A loss on extinguishment of the 2025 Notes of $36 million was recognized in Net interest and other financing expenses in the Condensed Consolidated Statements of Comprehensive Income for the three and six months ended March 31, 2021, comprised of the early redemption premium and the write-off of related unamortized debt issuance costs and discounts. The 2031 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 2031 Notes from the holders thereof. The 2031 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 their maturity in the manner specified in the governing indenture. Senior Credit Agreement As of March 31, 2021 and September 30, 2020, the term loan facility (the “Term Loan”) had an outstanding principal balance of $475 million, and there were no amounts outstanding under the $475 million revolving credit facility (the "Revolver"), both of which are senior secured credit facilities provided under the senior credit agreement (the “Senior Credit Agreement”). As of March 31, 2021, the total borrowing capacity remaining under the Revolver was $470 million due to a reduction of $5 million for letters of credit outstanding. As of March 31, 2021, Valvoline was in compliance with all covenants under the Senior Credit Agreement. Trade Receivables Facility The $175 million trade receivables securitization facility (the "Trade Receivables Facility") had an outstanding balance of $88 million as of March 31, 2021 and September 30, 2020. The financing subsidiary owned $246 million and $267 million of outstanding accounts receivable as of March 31, 2021 and September 30, 2020, respectively, which are included in Receivables, net in the Company’s Condensed Consolidated Balance Sheets. On April 27, 2021, Valvoline amended the Trade Receivables Facility to extend its maturity to April 2024 and modify the eligibility requirements for certain receivables, which had the effect of increasing the Company’s remaining borrowing capacity to $87 million as of March 31, 2021. The amendment also reduces the minimum required borrowing to the lesser of (i) 33 percent of the total facility limit or (ii) the borrowing base from the availability of eligible receivables, in addition to permitting up to a 30 consecutive day annual exemption from this requirement. Other relevant terms and conditions of Trade Receivables Facility were substantially unchanged under this amendment. China Construction Facility During the six months ended March 31, 2021, Valvoline borrowed $18 million under its $40 million credit agreement to finance capital expenditures associated with the preparation of the blending and packaging plant in China for production at capacity (the "China Construction Facility"). The China Construction Facility had approximately $37 million and $18 million outstanding as of March 31, 2021 and September 30, 2020, respectively. The remaining borrowing capacity under the China Construction Facility was approximately $3 million as of March 31, 2021. China Working Capital Facility On November 16, 2020, the Company entered into a one-year revolving credit facility of approximately $23 million to finance working capital needs for the blending and packaging plant in China (the “China Working Capital Facility”). Borrowings will bear interest at the local prime rate less the applicable interest rate margin with interest due monthly and repayment of borrowings due at maturity. As of March 31, 2021, the China Working Capital Facility had no outstanding borrowings, leaving its full borrowing capacity of approximately $23 million remaining.

Income Taxes

Income Taxes	6 Months Ended
	Mar. 31, 2021
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 Six months ended March 31 March 31 (In millions) 2021 2020 2021 2020 Income tax expense $ 22 $ 25 $ 52 $ 49 Effective tax rate percentage 24.4 % 28.4 % 25.1 % 26.5 % The decreases in effective tax rates for the three and six months ended March 31, 2021 were principally driven by tax reform legislation enacted in the prior year, which resulted in lower current year taxes and unfavorable discrete activity in the prior ye ar periods. Higher pre-tax earnings in the six months ended March 31, 2021 more than offset these benefits resulting in an increase in tax expense for the current year-to-date period. From a combination of statute expirations and anticipated audit settlements in the next twelve months, Valvoline currently estimates a decrease in the range of $25 million to $35 million in indemnity obligations due to the Company's former parent, which is expected to include certain unrecognized tax benefits.

Employee Benefit Plans

Employee Benefit Plans	6 Months Ended
	Mar. 31, 2021
Retirement Benefits [Abstract]
Employee Benefit Plans	EMPLOYEE BENEFIT PLANS The following table summarizes the components of pension and other postretirement benefit income: Other postretirement benefits Pension benefits (In millions) 2021 2020 2021 2020 Three months ended March 31 Service cost $ — $ — $ — $ — Interest cost 11 15 — 1 Expected return on plan assets (21) (22) — — Amortization of prior service credit — — (4) (3) Net periodic benefit income $ (10) $ (7) $ (4) $ (2) Six months ended March 31 Service cost $ 1 $ 1 $ — $ — Interest cost 22 31 — 1 Expected return on plan assets (43) (44) — — Amortization of prior service credit — — (6) (6) Net periodic benefit income $ (20) $ (12) $ (6) $ (5)

Litigation, Claims and Continge

Litigation, Claims and Contingencies	6 Months Ended
	Mar. 31, 2021
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 when 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	6 Months Ended
	Mar. 31, 2021
Earnings Per Share [Abstract]
Earnings Per Share	EARNINGS PER SHARE The following table summarizes basic and diluted earnings per share: Three months ended Six months ended March 31 March 31 (In millions, except per share amounts) 2021 2020 2021 2020 Numerator Net income $ 68 $ 63 $ 155 $ 136 Denominator Weighted average common shares outstanding 182 188 184 188 Effect of potentially dilutive securities (a) 1 — — 1 Weighted average diluted shares outstanding 183 188 184 189 Earnings per share Basic $ 0.37 $ 0.33 $ 0.84 $ 0.72 Diluted $ 0.37 $ 0.33 $ 0.84 $ 0.72 (a) During the three and six months ended March 31, 2020, there were approximately 1 million outstanding securities, primarily stock appreciation rights, not included in the computation of diluted earnings per share because the effect would have been antidilutive.

Reportable Segment Information

Reportable Segment Information	6 Months Ended
	Mar. 31, 2021
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 in the United States and Canada through company-operated and independent franchised retail quick lube service center stores and independent Express Care stores that service vehicles with Valvoline products. • 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 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 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 Six months ended March 31 March 31 2021 2020 2021 2020 Sales Quick Lubes $ 285 $ 212 $ 539 $ 430 Core North America 242 238 477 486 International 174 128 338 269 Consolidated sales $ 701 $ 578 $ 1,354 $ 1,185 Operating income Quick Lubes $ 63 $ 40 $ 106 $ 78 Core North America 38 47 85 93 International 28 18 62 38 Total operating segments 129 105 253 209 Unallocated and other (a) 2 12 2 12 Consolidated operating income $ 131 $ 117 $ 255 $ 221 (a) Unallocated and other includes net legacy and separation-related activity and certain other corporate matters not allocated to the reportable segments. Disaggregation of revenue The following table summarizes sales by primary customer channel for the Company’s reportable segments: Three months ended Six months ended March 31 March 31 (In millions) 2021 2020 2021 2020 Quick Lubes Company operations $ 204 $ 140 $ 382 $ 282 Non-company operations 81 72 157 148 Total Quick Lubes 285 212 539 430 Core North America Retail 142 133 277 270 Installer and other 100 105 200 216 Total Core North America 242 238 477 486 International 174 128 338 269 Consolidated sales $ 701 $ 578 $ 1,354 $ 1,185 Sales by reportable segment disaggregated by geographic market follows: Quick Lubes Core North America International Total (In millions) 2021 2020 2021 2020 2021 2020 2021 2020 Three months ended March 31 North America (a) $ 285 $ 212 $ 242 $ 238 $ — $ — $ 527 $ 450 Europe, Middle East and Africa ("EMEA") — — — — 54 44 54 44 Asia Pacific — — — — 88 58 88 58 Latin America (a) — — — — 32 26 32 26 Totals $ 285 $ 212 $ 242 $ 238 $ 174 $ 128 $ 701 $ 578 Six months ended March 31 North America (a) $ 539 $ 430 $ 477 $ 486 $ — $ — $ 1,016 $ 916 EMEA — — — — 105 91 105 91 Asia Pacific — — — — 171 128 171 128 Latin America (a) — — — — 62 50 62 50 Totals $ 539 $ 430 $ 477 $ 486 $ 338 $ 269 $ 1,354 $ 1,185

Supplemental Financial Informat

Supplemental Financial Information	6 Months Ended
	Mar. 31, 2021
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 Statements of Cash Flows to the Condensed Consolidated Balance Sheets: (In millions) March 31 September 30 March 31 Cash and cash equivalents $ 247 $ 760 $ 774 Restricted cash (a) 1 1 1 Total cash, cash equivalents and restricted cash $ 248 $ 761 $ 775 (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) March 31 September 30 Current Trade $ 426 $ 409 Other 16 14 Notes receivable from franchisees (a) 10 13 Receivables, gross 452 436 Allowance for credit losses (4) (3) Receivables, net $ 448 $ 433 Non-current (b) Notes receivable from franchisees (a) $ 5 $ 13 Other notes receivable 3 8 Noncurrent notes receivable, gross 8 21 Allowance for losses (3) (4) Noncurrent notes receivable, net $ 5 $ 17 (a) Notes receivable from franchisees were primarily issued in fiscal 2020 to provide financial assistance in response to the COVID-19 pandemic. No material balances were past due as of March 31, 2021. (b) Included in Other noncurrent assets within the Condensed Consolidated Balance Sheets. 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) March 31 September 30 Finished products $ 216 $ 195 Raw materials, supplies and work in process 37 30 Reserve for LIFO cost valuation (35) (26) Total inventories, net $ 218 $ 199 Revenue recognition The following table disaggregates the Company’s sales by timing of recognition: Three months ended Six months ended March 31 March 31 (In millions) 2021 2020 2021 2020 Sales at a point in time $ 689 $ 569 $ 1,331 $ 1,165 Franchised revenues transferred over time 12 9 23 20 Total consolidated sales $ 701 $ 578 $ 1,354 $ 1,185

Subsequent Events

Subsequent Events	6 Months Ended
	Mar. 31, 2021
Subsequent Events [Abstract]
Subsequent Events	SUBSEQUENT EVENTS Dividend declared On April 22, 2021, the Board of Directors of Valvoline declared a quarterly cash dividend of $0.125 per share of Valvoline common stock. The dividend is payable on June 15, 2021 to shareholders of record on May 28, 2021.

Basis of Presentation and Sig_2

Basis of Presentation and Significant Accounting Policies (Policies)	6 Months Ended
	Mar. 31, 2021
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, 2020. 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. Valvoline has substantially maintained its operations throughout the COVID-19 pandemic to-date and has continued precautionary measures to protect the Company's employees and customers and manage through the currently known impacts on its business. Given the unprecedented nature of the pandemic, the extent of 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 upon adoption. The Financial Accounting Standards Board ("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 below. Recently adopted In June 2016, the FASB issued updated guidance that changes the recognition of credit losses from an incurred or probable loss methodology to a current expected credit loss model that results in the immediate recognition of credit losses that are expected to occur over the life of the financial instruments that are within the scope of the guidance, principally trade and other receivables for Valvoline. The new credit loss guidance was adopted on October 1, 2020 using the required modified retrospective approach. Under this approach, the new accounting guidance is applied prospectively from the date of adoption through a cumulative effect adjustment in retained deficit, while prior period financial statements continue to be reported in accordance with the previous guidance. Adoption did not have a material impact on the Company's condensed consolidated financial statements and resulted in a $2 million, net of tax, cumulative effect of accounting change that increased retained deficit and allowances for credit losses. In connection with and following the adoption of this guidance, Valvoline maintains allowances to estimate expected lifetime credit losses that are based on a broad range of reasonable and supportable information and factors, including the length of time receivables are past due, the financial health of its customers, macroeconomic conditions, and historical collection experience. Refer to Note 11 for additional information regarding the Company's trade and other receivables and its allowances for credit losses. Issued but not yet adopted In March 2020, the FASB issued guidance regarding the effects of reference rate reform intended to ease financial reporting burdens as the market transitions from the London Interbank Offered Rate ("LIBOR") and other interbank reference rates to alternative reference rates. The Company has interest rate swap hedging arrangements and long-term debt as described in Notes 2 and 5 to the Condensed Consolidated Financial Statements, respectively, for which existing payments are based on LIBOR. This guidance is available to be adopted through the end of calendar 2022 to simplify the accounting for arrangements modified for the transition to alternative reference rates.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Mar. 31, 2021
Fair Value Disclosures [Abstract]
Schedule of Assets and Liabilities at Fair Value	The following tables set forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis by level within the fair value hierarchy: As of March 31, 2021 (In millions) Total Level 1 Level 2 Level 3 NAV (a) Cash and cash equivalents Money market funds $ 13 $ 13 $ — $ — $ — Time deposits 74 — 74 — — Prepaid expenses and other current assets Currency derivatives (b) 3 — 3 — — Other noncurrent assets Non-qualified trust funds 13 — 4 — 9 Interest rate swap agreements 2 2 Total assets at fair value $ 105 $ 13 $ 83 $ — $ 9 Accrued expenses and other liabilities Currency derivatives (b) $ 2 $ — $ 2 $ — $ — Interest rate swap agreements 1 — 1 — — Other noncurrent liabilities Deferred compensation obligations 23 — — — 23 Total liabilities at fair value $ 26 $ — $ 3 $ — $ 23 As of September 30, 2020 (In millions) Total Level 1 Level 2 Level 3 NAV (a) Cash and cash equivalents Money market funds $ 296 $ 296 $ — $ — $ — Time deposits 139 — 139 — — Prepaid expenses and other current assets Currency derivatives (b) 3 — 3 — — Other noncurrent assets Non-qualified trust funds 16 — 8 — 8 Total assets at fair value $ 454 $ 296 $ 150 $ — $ 8 Accrued expenses and other liabilities Currency derivatives (b) $ 2 $ — $ 2 $ — $ — Interest rate swap agreements 1 — 1 — — Other noncurrent liabilities Deferred compensation obligations 25 — — — 25 Total liabilities at fair value $ 28 $ — $ 3 $ — $ 25 (a) Funds measured at fair value using the net asset value ("NAV") per share practical expedient have not been classified in the fair value hierarchy. (b) The Company had outstanding contracts with notional values of $173 million and $149 million as of March 31, 2021 and September 30, 2020, respectively.
Summary of Fair Value of Debt	Carrying values shown in the following table are net of unamortized discounts and issuance costs. March 31, 2021 September 30, 2020 (In millions) Fair value Carrying value Unamortized Fair value Carrying value Unamortized 2025 Notes $ — $ — $ — $ 827 $ 790 $ (10) 2030 Notes 613 593 (7) 613 592 (8) 2031 Notes 519 528 (7) — — — Total $ 1,132 $ 1,121 $ (14) $ 1,440 $ 1,382 $ (18)

Acquisitions and Divestitures (

Acquisitions and Divestitures (Tables)	6 Months Ended
	Mar. 31, 2021
Business Combinations [Abstract]
Summary of Consideration Paid and Assets and Liabilities Acquired	A summary follows of the aggregate cash consideration paid and the total assets acquired and liabilities assumed for the six months ended March 31: (In millions) 2021 2020 Inventories $ 2 $ — Other current assets 1 — Property, plant and equipment (a) 82 1 Operating lease assets 26 — Goodwill (b) 180 5 Intangible assets (c) Reacquired franchise rights (d) 34 5 Other 3 — Other current liabilities (a) (7) — Operating lease liabilities (24) — Other noncurrent liabilities (a) (74) — Net assets acquired $ 223 $ 11 (a) Includes $73 million of finance lease assets in property, plant and equipment and finance lease liabilities of $3 million and $70 million in other current and noncurrent liabilities, respectively, for leases acquired during the six months ended March 31, 2021. (b) Goodwill is generally expected to be deductible for income tax purposes and is primarily attributed to the operational synergies and potential growth expected to result in economic benefits in the respective markets of the acquisitions. (c) Intangible assets acquired during the six months ended March 31, 2021 and 2020 have weighted average amortization periods of 11 and nine years, respectively. (d) Prior to the acquisition of former franchise service center stores, Valvoline licensed the right to operate franchised quick lube service centers, including use of the Company’s trademarks and trade name. In connection with these acquisitions, Valvoline reacquired those rights and recognized separate definite-lived reacquired franchise rights intangible assets, which are being amortized on a straight-line basis over the weighted average remaining term of approximately 11 years for the rights reacquired in fiscal 2021. The effective settlement of these arrangements resulted in no settlement gain or loss as the contractual terms were at market.

Goodwill and Other Intangibles

Goodwill and Other Intangibles (Tables)	6 Months Ended
	Mar. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The following table summarizes changes in the carrying amount of goodwill by reportable segment and in total during the six months ended March 31, 2021: (In millions) Quick Lubes Core North America International Total Balance at September 30, 2020 $ 316 $ 89 $ 40 $ 445 Acquisitions (a) 178 — 2 180 Dispositions (b) (10) — — (10) Currency translation 2 — — 2 Balance at March 31, 2021 $ 486 $ 89 $ 42 $ 617 (a) Includes acquisitions within the Quick Lubes reportable segment of 86 service center stores and a former joint venture in the International reportable segment. Refer to Note 3 for additional details.
Schedule of Definite-Lived Intangible Assets	The following summarizes the gross carrying amounts and accumulated amortization of the Company’s intangible assets: (In millions) March 31, 2021 September 30, 2020 Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated amortization Net carrying amount Definite-lived intangible assets Trademarks and trade names $ 31 $ (7) $ 24 $ 30 $ (6) $ 24 Reacquired franchise rights 91 (18) 73 57 (14) 43 Customer relationships 22 (8) 14 22 (7) 15 Other intangible assets 6 (2) 4 3 (1) 2 Total definite-lived intangible assets $ 150 $ (35) $ 115 $ 112 $ (28) $ 84
Schedule of Definite-Lived Intangible Assets, Actual and Estimated Amortization Expense	The table that follows summarizes amortization expense (actual and estimated) for intangible assets, assuming no additional amortizable intangible assets: Actual Estimated Six months ended Years ended September 30 (In millions) 2021 2021 2022 2023 2024 2025 Amortization expense $ 7 $ 15 $ 14 $ 14 $ 13 $ 11

Debt (Tables)

Debt (Tables)	6 Months Ended
	Mar. 31, 2021
Debt Disclosure [Abstract]
Schedule of Total Debt	The following table summarizes Valvoline’s total debt as of: (In millions) March 31 September 30 2031 Notes $ 535 $ — 2030 Notes 600 600 2025 Notes — 800 Term Loan 475 475 Trade Receivables Facility 88 88 China Construction Facility 37 18 Debt issuance costs and discounts (15) (19) Total debt 1,720 1,962 Current portion of long-term debt 1 — Long-term debt $ 1,719 $ 1,962

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
	Mar. 31, 2021
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 Six months ended March 31 March 31 (In millions) 2021 2020 2021 2020 Income tax expense $ 22 $ 25 $ 52 $ 49 Effective tax rate percentage 24.4 % 28.4 % 25.1 % 26.5 %

Employee Benefit Plans (Tables)

Employee Benefit Plans (Tables)	6 Months Ended
	Mar. 31, 2021
Retirement Benefits [Abstract]
Components of Pension and Other Postretirement Benefit Income	The following table summarizes the components of pension and other postretirement benefit income: Other postretirement benefits Pension benefits (In millions) 2021 2020 2021 2020 Three months ended March 31 Service cost $ — $ — $ — $ — Interest cost 11 15 — 1 Expected return on plan assets (21) (22) — — Amortization of prior service credit — — (4) (3) Net periodic benefit income $ (10) $ (7) $ (4) $ (2) Six months ended March 31 Service cost $ 1 $ 1 $ — $ — Interest cost 22 31 — 1 Expected return on plan assets (43) (44) — — Amortization of prior service credit — — (6) (6) Net periodic benefit income $ (20) $ (12) $ (6) $ (5)

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Mar. 31, 2021
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	: Three months ended Six months ended March 31 March 31 (In millions, except per share amounts) 2021 2020 2021 2020 Numerator Net income $ 68 $ 63 $ 155 $ 136 Denominator Weighted average common shares outstanding 182 188 184 188 Effect of potentially dilutive securities (a) 1 — — 1 Weighted average diluted shares outstanding 183 188 184 189 Earnings per share Basic $ 0.37 $ 0.33 $ 0.84 $ 0.72 Diluted $ 0.37 $ 0.33 $ 0.84 $ 0.72 (a) During the three and six months ended March 31, 2020, there were approximately 1 million outstanding securities, primarily stock appreciation rights, not included in the computation of diluted earnings per share because the effect would have been antidilutive.

Reportable Segment Information

Reportable Segment Information (Tables)	6 Months Ended
	Mar. 31, 2021
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 Six months ended March 31 March 31 2021 2020 2021 2020 Sales Quick Lubes $ 285 $ 212 $ 539 $ 430 Core North America 242 238 477 486 International 174 128 338 269 Consolidated sales $ 701 $ 578 $ 1,354 $ 1,185 Operating income Quick Lubes $ 63 $ 40 $ 106 $ 78 Core North America 38 47 85 93 International 28 18 62 38 Total operating segments 129 105 253 209 Unallocated and other (a) 2 12 2 12 Consolidated operating income $ 131 $ 117 $ 255 $ 221 (a) Unallocated and other includes net legacy and separation-related activity and certain other corporate matters not allocated to the reportable segments.
Schedule of Disaggregated Revenues	The following table summarizes sales by primary customer channel for the Company’s reportable segments: Three months ended Six months ended March 31 March 31 (In millions) 2021 2020 2021 2020 Quick Lubes Company operations $ 204 $ 140 $ 382 $ 282 Non-company operations 81 72 157 148 Total Quick Lubes 285 212 539 430 Core North America Retail 142 133 277 270 Installer and other 100 105 200 216 Total Core North America 242 238 477 486 International 174 128 338 269 Consolidated sales $ 701 $ 578 $ 1,354 $ 1,185
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) 2021 2020 2021 2020 2021 2020 2021 2020 Three months ended March 31 North America (a) $ 285 $ 212 $ 242 $ 238 $ — $ — $ 527 $ 450 Europe, Middle East and Africa ("EMEA") — — — — 54 44 54 44 Asia Pacific — — — — 88 58 88 58 Latin America (a) — — — — 32 26 32 26 Totals $ 285 $ 212 $ 242 $ 238 $ 174 $ 128 $ 701 $ 578 Six months ended March 31 North America (a) $ 539 $ 430 $ 477 $ 486 $ — $ — $ 1,016 $ 916 EMEA — — — — 105 91 105 91 Asia Pacific — — — — 171 128 171 128 Latin America (a) — — — — 62 50 62 50 Totals $ 539 $ 430 $ 477 $ 486 $ 338 $ 269 $ 1,354 $ 1,185 (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)	6 Months Ended
	Mar. 31, 2021
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 Statements of Cash Flows to the Condensed Consolidated Balance Sheets: (In millions) March 31 September 30 March 31 Cash and cash equivalents $ 247 $ 760 $ 774 Restricted cash (a) 1 1 1 Total cash, cash equivalents and restricted cash $ 248 $ 761 $ 775
Summary of Accounts Receivable	The following table summarizes Valvoline’s accounts and other receivables in the Condensed Consolidated Balance Sheets: (In millions) March 31 September 30 Current Trade $ 426 $ 409 Other 16 14 Notes receivable from franchisees (a) 10 13 Receivables, gross 452 436 Allowance for credit losses (4) (3) Receivables, net $ 448 $ 433 Non-current (b) Notes receivable from franchisees (a) $ 5 $ 13 Other notes receivable 3 8 Noncurrent notes receivable, gross 8 21 Allowance for losses (3) (4) Noncurrent notes receivable, net $ 5 $ 17 (a) Notes receivable from franchisees were primarily issued in fiscal 2020 to provide financial assistance in response to the COVID-19 pandemic. No material balances were past due as of March 31, 2021. (b) 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) March 31 September 30 Finished products $ 216 $ 195 Raw materials, supplies and work in process 37 30 Reserve for LIFO cost valuation (35) (26) Total inventories, net $ 218 $ 199
Disaggregation of Sales by Timing of Revenue Recognized	The following table disaggregates the Company’s sales by timing of recognition: Three months ended Six months ended March 31 March 31 (In millions) 2021 2020 2021 2020 Sales at a point in time $ 689 $ 569 $ 1,331 $ 1,165 Franchised revenues transferred over time 12 9 23 20 Total consolidated sales $ 701 $ 578 $ 1,354 $ 1,185

Basis of Presentation and Sig_3

Basis of Presentation and Significant Accounting Policies (Details) $ in Millions	Sep. 30, 2020USD ($)
Cumulative Effect, Period of Adoption, Adjustment
Accounts Receivable, Allowance for Credit Loss	$ 2

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Assets and Liabilities at Fair Value (Details) - USD ($) $ in Millions	Mar. 31, 2021	Sep. 30, 2020
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument
Liabilities, Fair Value Disclosure [Abstract]
Derivative, Notional Amount	$ 173	$ 149
Fair Value, Inputs, Level 1 [Member]
Other noncurrent assets
Assets, Fair Value Disclosure	13	296
Fair Value, Inputs, Level 2 [Member]
Other noncurrent assets
Assets, Fair Value Disclosure	83	150
Liabilities, Fair Value Disclosure [Abstract]
Financial and Nonfinancial Liabilities, Fair Value Disclosure	3	3
Fair Value Measured at Net Asset Value Per Share
Other noncurrent assets
Non-qualified trust funds	9	8
Liabilities, Fair Value Disclosure [Abstract]
Deferred compensation obligations	23	25
Fair Value, Measurements, Recurring
Prepaid Expense and Other Assets, Current [Abstract]
Currency derivatives	3	3
Other noncurrent assets
Non-qualified trust funds	13	16
Interest Rate Fair Value Hedge Asset at Fair Value	2
Assets, Fair Value Disclosure	105	454
Liabilities, Fair Value Disclosure [Abstract]
Currency derivatives	2	2
Interest rate swap agreements	1	1
Deferred compensation obligations	23	25
Financial and Nonfinancial Liabilities, Fair Value Disclosure	26	28
Fair Value, Measurements, Recurring | Money Market Funds [Member]
Cash and cash equivalents
Cash and Cash Equivalents, Fair Value Disclosure	13	296
Fair Value, Measurements, Recurring | Time deposits
Cash and cash equivalents
Cash and Cash Equivalents, Fair Value Disclosure	74	139
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member]
Cash and cash equivalents
Cash and Cash Equivalents, Fair Value Disclosure	13	296
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 [Member]
Prepaid Expense and Other Assets, Current [Abstract]
Currency derivatives	3	3
Other noncurrent assets
Non-qualified trust funds	4	8
Interest Rate Derivative Assets, at Fair Value	2
Liabilities, Fair Value Disclosure [Abstract]
Currency derivatives	2	2
Interest rate swap agreements	1	1
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 [Member] | Time deposits
Cash and cash equivalents
Cash and Cash Equivalents, Fair Value Disclosure	74	139
Fair Value, Measurements, Recurring | Fair Value Measured at Net Asset Value Per Share
Other noncurrent assets
Non-qualified trust funds	9	8
Liabilities, Fair Value Disclosure [Abstract]
Deferred compensation obligations	$ 23	$ 25

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Assets and Liabilities Measured on Recurring Basis, Gain (Loss) Included in Earnings	$ 0	$ 0	$ 0	$ 0

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value of Debt (Details) - USD ($) $ in Millions	Mar. 31, 2021	Sep. 30, 2020
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Unamortized discounts and issuance costs	$ 15	$ 19
Fair Value, Inputs, Level 2 [Member] | Fair value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	1,132	1,440
Fair Value, Inputs, Level 2 [Member] | Fair value | Senior Notes | 2025 Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	0	827
Fair Value, Inputs, Level 2 [Member] | 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	613	613
Fair Value, Inputs, Level 2 [Member] | Fair value | Senior Notes | Senior Unsecured Notes Due 2031 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	519	0
Fair Value, Inputs, Level 2 [Member] | Carrying value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	1,121	1,382
Unamortized discounts and issuance costs	(14)	(18)
Fair Value, Inputs, Level 2 [Member] | Carrying value | Senior Notes | 2025 Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	0	790
Unamortized discounts and issuance costs	0	(10)
Fair Value, Inputs, Level 2 [Member] | 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	593	592
Unamortized discounts and issuance costs	(7)	(8)
Fair Value, Inputs, Level 2 [Member] | Carrying value | Senior Notes | Senior Unsecured Notes Due 2031 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	528	0
Unamortized discounts and issuance costs	$ (7)	$ 0

Acquisitions and Divestitures -

Acquisitions and Divestitures - Narrative (Details) $ in Millions	Dec. 11, 2020service_center_store	Oct. 30, 2020service_center_store	Oct. 15, 2020service_center_store	Oct. 01, 2020service_center_store	Mar. 31, 2021USD ($)service_center_store	Mar. 31, 2020USD ($)service_center_store
Business Acquisition [Line Items]
Number of service center stores acquired					5	14
Consideration for acquisition | $					$ 223	$ 11
Number of service center stores acquired in single and multi-store transactions					100
Business Disposition, Number of Service Centers Sold					12
Business Acquisition, Number of Former Franchise Service Centers					7	6
Number of System-wide Service Center Stores					1,500
Number of Company Owned Stores					650
Operating lease assets | $					$ 26	$ 0
Business Acquisition, Number of Former Joint Venture Locations					14
Quick Lubes
Business Acquisition [Line Items]
Number of service center stores acquired in single and multi-store transactions					86
Car Wash Partners, Inc. [Member]
Business Acquisition [Line Items]
Number of service center stores acquired	27
Number of franchise-operated service center stores acquired	12
Number of service center stores acquired in single and multi-store transactions	15
Business Acquisition, Number Of States in Which Service Center Stores Acquired	7
Kent Lubrication Centers Ltd. dba Avis Lube [Member]
Business Acquisition [Line Items]
Number of service center stores acquired				14
Westco Lube, Inc [Member]
Business Acquisition [Line Items]
Business Acquisition, Number of Former Franchise Service Centers			21
L&F Enterprises dba Einstein's Oilery [Member]
Business Acquisition [Line Items]
Number of service center stores acquired		12

Acquisitions and Divestitures_2

Acquisitions and Divestitures - Schedule of Aggregate Cash Consideration and Total Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions	6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Business Acquisition [Line Items]
Inventory	$ 2	$ 0
Other Current Assets	1	0
Property plant and equipment	82	1
Operating lease assets	26	0
Goodwill (b)	180	5
Other Current Liabilities	(7)	0
Operating Lease Liabilities	(24)	0
Other noncurrent liabilities	(74)	0
Net assets acquired	223	11
Consideration transferred	223	$ 11
Financing lease assets	73
Financing lease liabilities, noncurrent	70
Gain (Loss) on Contract Termination	0
Financing lease liabilities, current	$ 3
Weighted average amortization period	11 years	9 years
Reacquired franchise rights (d)
Business Acquisition [Line Items]
Weighted average amortization period	11 years
Intangible assets	$ 34	$ 5
Other
Business Acquisition [Line Items]
Intangible assets	$ 3	$ 0

Goodwill and Other Intangible_2

Goodwill and Other Intangibles - Summary of Goodwill by Segment (Details) $ in Millions	6 Months Ended
	Mar. 31, 2021USD ($)service_center_store
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 445
Acquisitions	180
Goodwill, Written off Related to Sale of Business Unit	10
Currency translation	2
Goodwill, ending balance	$ 617
Number of service center stores acquired in single and multi-store transactions | service_center_store	100
Quick Lubes
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 316
Acquisitions	178
Goodwill, Written off Related to Sale of Business Unit	10
Currency translation	2
Goodwill, ending balance	$ 486
Number of service center stores acquired in single and multi-store transactions | service_center_store	86
Core North America
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 89
Acquisitions	0
Goodwill, Written off Related to Sale of Business Unit	0
Currency translation	0
Goodwill, ending balance	89
International
Goodwill [Roll Forward]
Goodwill, beginning balance	40
Acquisitions	2
Goodwill, Written off Related to Sale of Business Unit	0
Currency translation	0
Goodwill, ending balance	$ 42

Goodwill and Other Intangible_3

Goodwill and Other Intangibles - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Millions	Mar. 31, 2021	Sep. 30, 2020
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	$ 150	$ 112
Finite-Lived Intangible Assets, Accumulated Amortization	(35)	(28)
Finite-Lived Intangible Assets, Net	115	84
Trademarks and trade names
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	31	30
Finite-Lived Intangible Assets, Accumulated Amortization	(7)	(6)
Finite-Lived Intangible Assets, Net	24	24
Reacquired franchise rights (d)
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	91	57
Finite-Lived Intangible Assets, Accumulated Amortization	(18)	(14)
Finite-Lived Intangible Assets, Net	73	43
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	22	22
Finite-Lived Intangible Assets, Accumulated Amortization	(8)	(7)
Finite-Lived Intangible Assets, Net	14	15
Other
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	6	3
Finite-Lived Intangible Assets, Accumulated Amortization	(2)	(1)
Finite-Lived Intangible Assets, Net	$ 4	$ 2

Goodwill and Other Intangible_4

Goodwill and Other Intangibles (Details) - USD ($) $ in Millions	6 Months Ended
	Mar. 31, 2021	Sep. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of Intangible Assets	$ 7
Finite-Lived Intangible Asset, Expected Amortization, Year One		$ 15
Estimated 2022		14
Estimated 2023		14
Estimated 2024		13
Estimated 2025		$ 11

Debt - Schedule of Short-Term B

Debt - Schedule of Short-Term Borrowings and Long Term Debt (Details) - USD ($)	Mar. 31, 2021	Jan. 14, 2021	Sep. 30, 2020
Debt Instrument [Line Items]
Current portion of long-term debt	$ 1,000,000		$ 0
Long-term debt	1,719,000,000		1,962,000,000
Debt issuance costs and discounts	(15,000,000)		(19,000,000)
Total debt	1,720,000,000		1,962,000,000
Senior Unsecured Notes Due 2031 [Member] | Senior Notes
Debt Instrument [Line Items]
Aggregate principal amount	535,000,000		0
Senior Unsecured Notes Due 2030 [Domain] | Senior Notes
Debt Instrument [Line Items]
Aggregate principal amount	600,000,000		600,000,000
2025 Notes | Senior Notes
Debt Instrument [Line Items]
Debt gross	0		800,000,000
Aggregate principal amount		$ 800,000,000
Term Loan | Line of Credit
Debt Instrument [Line Items]
Debt gross	475,000,000		475,000,000
Term Loan | Line of Credit | Revolver
Debt Instrument [Line Items]
Debt gross	475,000,000
Long-term debt	0		0
Trade Receivables Facility | Line of Credit | Secured Debt
Debt Instrument [Line Items]
Debt gross	175,000,000
Long-term debt	88,000,000		88,000,000
Construction Credit Facility [Member] | CHINA
Debt Instrument [Line Items]
Long-term debt	$ 37,000,000		$ 18,000,000

Debt - Senior Notes (Details)

Debt - Senior Notes (Details) - USD ($)	Jan. 14, 2021	Mar. 31, 2021	Mar. 31, 2020	Sep. 30, 2020
Debt Instrument [Line Items]
Payment for debt extinguishment or debt prepayment cost		$ 26,000,000	$ 15,000,000
Debt issuance costs and discounts		15,000,000		$ 19,000,000
Proceeds from borrowings, net of issuance costs		546,000,000	1,132,000,000
Gain (loss) on extinguishment of debt	$ 36,000,000	$ 36,000,000	$ 19,000,000
2025 Notes
Debt Instrument [Line Items]
Repayments of senior debt	840,000,000
Redemption Premium	26,000,000
Senior Notes | Senior Unsecured Notes Due 2031 [Member]
Debt Instrument [Line Items]
Interest rate on senior unsecured notes		3.625%
Aggregate principal amount		$ 535,000,000		0
Proceeds from borrowings, net of issuance costs	$ 528,000,000
Senior Notes | 2025 Notes
Debt Instrument [Line Items]
Interest rate on senior unsecured notes	4.375%
Aggregate principal amount	$ 800,000,000
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		$ 600,000,000

Debt - Senior Credit Agreement

Debt - Senior Credit Agreement (Details) - Term Loan - Line of Credit - USD ($)	6 Months Ended
	Mar. 31, 2021	Sep. 30, 2020
Debt Instrument [Line Items]
Debt gross	$ 475,000,000	$ 475,000,000
Revolver
Debt Instrument [Line Items]
Repayments of long-term debt	5,000,000
Total borrowing capacity remaining	470,000,000
Debt gross	$ 475,000,000

Debt - Trade Receivables Facili

Debt - Trade Receivables Facility (Details) - Line of Credit - Trade Receivables Facility - Secured Debt - USD ($)	Apr. 27, 2021	Mar. 31, 2021	Sep. 30, 2020
Debt Instrument [Line Items]
Long-term debt outstanding amount		$ 88,000,000	$ 88,000,000
Debt gross		175,000,000
Subsequent Event
Debt Instrument [Line Items]
Total borrowing capacity remaining	$ 87,000,000
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage	33.00%
Financing Subsidiary
Debt Instrument [Line Items]
Accounts receivable pledged as collateral		$ 246,000,000	$ 267,000,000

Debt - China Credit Facility (D

Debt - China Credit Facility (Details) - USD ($) $ in Millions	6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Nov. 16, 2020	Sep. 30, 2020	May 06, 2020
Line of Credit Facility [Line Items]
Proceeds from borrowings, net of issuance costs	$ 546	$ 1,132
CHINA | Construction Credit Facility [Member]
Line of Credit Facility [Line Items]
Original principal amount of debt					$ 40
Total borrowing capacity remaining	3
Long-term debt	37			$ 18
Proceeds from borrowings, net of issuance costs	18
CHINA | Working Capital Loan [Member]
Line of Credit Facility [Line Items]
Original principal amount of debt			$ 23
Total borrowing capacity remaining	23
Long-term debt	$ 0

Income Taxes - Schedule of Inco

Income Taxes - Schedule of Income Tax Expense and Effective Tax Rate (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Income tax expense	$ 22	$ 25	$ 52	$ 49
Effective tax rate percentage	24.40%	28.40%	25.10%	26.50%

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) $ in Millions	Mar. 31, 2021USD ($)
Minimum
Operating Loss Carryforwards [Line Items]
Liability for uncertain income tax positions	$ 25
Maximum
Operating Loss Carryforwards [Line Items]
Liability for uncertain income tax positions	$ 35

Employee Benefit Plans - Compon

Employee Benefit Plans - Components of Pension and Other Postretirement Benefit Income (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Pension benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 0	$ 0	$ 1	$ 1
Interest cost	11	15	22	31
Expected return on plan assets	(21)	(22)	(43)	(44)
Amortization of prior service credit	0	0	0	0
Net periodic benefit income	(10)	(7)	(20)	(12)
Other postretirement benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	0	0	0	0
Interest cost	0	1	0	1
Expected return on plan assets	0	0	0	0
Amortization of prior service credit	(4)	(3)	(6)	(6)
Net periodic benefit income	$ (4)	$ (2)	$ (6)	$ (5)

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended				6 Months Ended
	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2021	Mar. 31, 2020
Numerator
Net income	$ 68	$ 87	$ 63	$ 73	$ 155	$ 136
Denominator
Weighted-average common shares outstanding (shares)	182		188		184	188
Effect of potentially dilutive securities (shares)	1		0		0	1
Weighted average diluted shares outstanding (shares)	183		188		184	189
Earnings per share
Basic (usd per share)	$ 0.37		$ 0.33		$ 0.84	$ 0.72
Diluted (usd per share)	$ 0.37		$ 0.33		$ 0.84	$ 0.72
Shares excluded from diluted earnings per share calculation due to anti-dilutive effect (shares)			1			1

Reportable Segment Informatio_2

Reportable Segment Information - Narrative (Details)	6 Months Ended
	Mar. 31, 2021numberOfCountriesnumberOfSegments
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		6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Segment Reporting Information [Line Items]
Sales	$ 701	$ 578	$ 1,354	$ 1,185
Operating income	131	117	255	221
North America
Segment Reporting Information [Line Items]
Sales	527	450	1,016	916
EMEA
Segment Reporting Information [Line Items]
Sales	54	44	105	91
Asia Pacific
Segment Reporting Information [Line Items]
Sales	88	58	171	128
Latin America
Segment Reporting Information [Line Items]
Sales	32	26	62	50
Operating Segments
Segment Reporting Information [Line Items]
Operating income	129	105	253	209
Unallocated and Other
Segment Reporting Information [Line Items]
Operating income	2	12	2	12
Quick Lubes
Segment Reporting Information [Line Items]
Sales			539	430
Quick Lubes | North America
Segment Reporting Information [Line Items]
Sales	285	212	539	430
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
Quick Lubes | Operating Segments
Segment Reporting Information [Line Items]
Sales	285	212	539	430
Operating income	63	40	106	78
Core North America
Segment Reporting Information [Line Items]
Sales			477	486
Core North America | North America
Segment Reporting Information [Line Items]
Sales	242	238	477	486
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
Core North America | Operating Segments
Segment Reporting Information [Line Items]
Sales	242	238	477	486
Operating income	38	47	85	93
International
Segment Reporting Information [Line Items]
Sales	174	128	338	269
International | North America
Segment Reporting Information [Line Items]
Sales	0	0	0	0
International | EMEA
Segment Reporting Information [Line Items]
Sales	54	44	105	91
International | Asia Pacific
Segment Reporting Information [Line Items]
Sales	88	58	171	128
International | Latin America
Segment Reporting Information [Line Items]
Sales	32	26	62	50
International | Operating Segments
Segment Reporting Information [Line Items]
Sales	174	128	338	269
Operating income	$ 28	$ 18	$ 62	$ 38

Reportable Segment Informatio_4

Reportable Segment Information - Disaggregation of Revenues by Reportable Segments (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Segment Reporting Information [Line Items]
Sales	$ 701	$ 578	$ 1,354	$ 1,185
Quick Lubes
Segment Reporting Information [Line Items]
Sales			539	430
Quick Lubes | Operating Segments
Segment Reporting Information [Line Items]
Sales	285	212	539	430
Quick Lubes | Company operations | Operating Segments
Segment Reporting Information [Line Items]
Sales	204	140	382	282
Quick Lubes | Non-company operations | Operating Segments
Segment Reporting Information [Line Items]
Sales	81	72	157	148
Core North America
Segment Reporting Information [Line Items]
Sales			477	486
Core North America | Operating Segments
Segment Reporting Information [Line Items]
Sales	242	238	477	486
Core North America | Retail | Operating Segments
Segment Reporting Information [Line Items]
Sales	142	133	277	270
Core North America | Installer and other | Operating Segments
Segment Reporting Information [Line Items]
Sales	100	105	200	216
International
Segment Reporting Information [Line Items]
Sales	174	128	338	269
International | Operating Segments
Segment Reporting Information [Line Items]
Sales	$ 174	$ 128	$ 338	$ 269

Reportable Segment Informatio_5

Reportable Segment Information - Disaggregation of Revenues by Geographical Market (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Segment Reporting Information [Line Items]
Sales	$ 701	$ 578	$ 1,354	$ 1,185
North America
Segment Reporting Information [Line Items]
Sales	527	450	1,016	916
EMEA
Segment Reporting Information [Line Items]
Sales	54	44	105	91
Asia Pacific
Segment Reporting Information [Line Items]
Sales	88	58	171	128
Latin America
Segment Reporting Information [Line Items]
Sales	32	26	62	50
Quick Lubes
Segment Reporting Information [Line Items]
Sales			539	430
Quick Lubes | Operating Segments
Segment Reporting Information [Line Items]
Sales	285	212	539	430
Quick Lubes | Operating Segments | Company operations
Segment Reporting Information [Line Items]
Sales	204	140	382	282
Quick Lubes | North America
Segment Reporting Information [Line Items]
Sales	285	212	539	430
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			477	486
Core North America | Operating Segments
Segment Reporting Information [Line Items]
Sales	242	238	477	486
Core North America | North America
Segment Reporting Information [Line Items]
Sales	242	238	477	486
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	174	128	338	269
International | Operating Segments
Segment Reporting Information [Line Items]
Sales	174	128	338	269
International | North America
Segment Reporting Information [Line Items]
Sales	0	0	0	0
International | EMEA
Segment Reporting Information [Line Items]
Sales	54	44	105	91
International | Asia Pacific
Segment Reporting Information [Line Items]
Sales	88	58	171	128
International | Latin America
Segment Reporting Information [Line Items]
Sales	$ 32	$ 26	$ 62	$ 50

Supplemental Financial Inform_3

Supplemental Financial Information - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions	Mar. 31, 2021	Sep. 30, 2020	Mar. 31, 2020	Sep. 30, 2019
Supplemental Financial Information [Abstract]
Cash and cash equivalents	$ 247	$ 760	$ 774
Restricted cash	1	1	1
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	$ 248	$ 761	$ 775	$ 159

Supplemental Financial Inform_4

Supplemental Financial Information - Summary of Accounts Receivable (Details) - USD ($) $ in Millions	Mar. 31, 2021	Sep. 30, 2020
Supplemental Financial Information [Abstract]
Accounts Receivable, Trade Receivables, Current	$ 426	$ 409
Accounts Receivable, Other Receivables, Current	16	14
Financing Receivable, before Allowance for Credit Loss, Current	10	13
Receivables Gross, Current	452	436
Allowance for Doubtful Accounts, Premiums and Other Receivables	(4)	(3)
Receivables, Net, Current	448	433
Financing Receivable, before Allowance for Credit Loss, Noncurrent	5	13
Notes Receivable, Noncurrent	3	8
Notes Receivable, Gross, Noncurrent	8	21
Accounts and Financing Receivable, Allowance for Credit Loss	(3)	(4)
Accounts and Financing Receivable, after Allowance for Credit Loss, Noncurrent	$ 5	$ 17

Supplemental Financial Inform_5

Supplemental Financial Information - Inventory (Details) - USD ($) $ in Millions	Mar. 31, 2021	Sep. 30, 2020
Supplemental Financial Information [Abstract]
Inventory, Finished Goods, Gross	$ 216	$ 195
Inventory, Work in Process and Raw Materials	37	30
Inventory, LIFO Reserve	(35)	(26)
Inventories, net	$ 218	$ 199

Supplemental Financial Inform_6

Supplemental Financial Information - Revenue Recognition and Deferred Revenue (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Inventory [Line Items]
Sales	$ 701	$ 578	$ 1,354	$ 1,185
Transferred over Time [Member]
Inventory [Line Items]
Sales	12	9	23	20
Transferred at Point in Time [Member]
Inventory [Line Items]
Sales	$ 689	$ 569	$ 1,331	$ 1,165

Subsequent Events (Details)

Subsequent Events (Details)	Apr. 22, 2021$ / shares
Subsequent Event
Subsequent Event [Line Items]
Dividend per share (usd per share)	$ 0.125