Valvoline (VVV) 10-Q 9 Feb 22 2022 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Dec. 31, 2021	Jan. 31, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Dec. 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		179,356,295
Entity Central Index Key	0001674910
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Income - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Net Income (Loss) Attributable to Parent [Abstract]
Sales	$ 858	$ 653
Cost of sales	614	425
Gross profit	244	228
Selling, general and administrative expenses	135	117
Legacy and separation-related expenses	3	1
Equity and other income, net	(15)	(14)
Operating Income (Loss), Total	121	124
Net pension and other postretirement plan income	(9)	(13)
Net interest and other financing expenses	17	20
Income before income taxes	113	117
Income tax expense	26	30
Net Income (Loss) Attributable to Parent, Total	$ 87	$ 87
NET EARNINGS PER SHARE
Basic (usd per share)	$ 0.48	$ 0.47
Diluted (usd per share)	$ 0.48	$ 0.47
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic (shares)	181	185
Diluted (shares)	182	186
COMPREHENSIVE INCOME
Net income	$ 87	$ 87
Other comprehensive income (loss), net of tax
Currency translation adjustments	0	18
Amortization of pension and other postretirement plan prior service credits	0	(2)
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax	1	0
Other comprehensive income	1	16
Comprehensive income	$ 88	$ 103

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) shares in Millions, $ in Millions	Dec. 31, 2021	Sep. 30, 2021
Assets, Current [Abstract]
Cash and cash equivalents	$ 152	$ 230
Receivables, Net, Current	530	496
Inventories, net	264	258
Prepaid expenses and other current assets	55	53
Total current assets	1,001	1,037
Noncurrent assets
Property, plant and equipment, net	824	817
Operating Lease, Right-of-Use Asset	309	307
Goodwill and intangibles, net	782	775
Equity method investments	50	47
Deferred income taxes	13	14
Other Assets, Noncurrent	204	194
Total noncurrent assets	2,182	2,154
Total assets	3,183	3,191
Current liabilities
Current portion of long-term debt	32	17
Trade and other payables	218	246
Accrued expenses and other liabilities	291	306
Total current liabilities	541	569
Noncurrent liabilities
Long-term debt	1,662	1,677
Employee benefit obligations	248	258
Operating lease liabilities, noncurrent	276	274
Deferred Income Tax Liabilities, Net	34	26
Other noncurrent liabilities	255	252
Total noncurrent liabilities	2,475	2,487
Commitments and contingencies
Stockholders’ equity
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; 180 shares issued and outstanding at December 31, 2021 and September 30, 2021	2	2
Paid-in capital	33	35
Retained earnings	123	90
Accumulated other comprehensive income	9	8
Total stockholders’ equity	167	135
Total liabilities and stockholders’ equity	$ 3,183	$ 3,191
Common stock outstanding (shares)	180	180
Common stock issued (shares)	180	180

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2021	Sep. 30, 2021
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)	180,000,000	180,000,000
Common stock outstanding (shares)	180,000,000	180,000,000

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 [Member]
Common stock outstanding, at beginning of period (shares) at Sep. 30, 2020			185
Balance at beginning of period at Sep. 30, 2020	$ (76)		$ 2	$ 24	$ (110)	$ 8
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	87				87
Dividends paid	(23)				(23)
Stock-based compensation plans	(1)			(1)
Repurchases of common stock	(58)				(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)	$ 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, 2021	180		180
Balance at beginning of period at Sep. 30, 2021	$ 135		$ 2	35	90	8
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	87				87
Dividends paid	(23)				(23)
Stock-based compensation plans	(2)			(2)
Repurchases of common stock	(31)				(31)
Stock Repurchased and Retired During Period, Shares			0
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	$ 1					1
Common stock outstanding, at end of period (shares) at Dec. 31, 2021	180		180
Balance at end of period at Dec. 31, 2021	$ 167		$ 2	$ 33	$ 123	$ 9
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
	Dec. 31, 2021	Dec. 31, 2020
Statement of Stockholders' Equity [Abstract]
Dividends paid per common share (usd per share)	$ 0.125	$ 0.125

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operating activities
Net income	$ 87	$ 87
Adjustments to reconcile net income to cash flows from operating activities
Depreciation and amortization	25	21
Deferred income taxes	8	0
Stock-based compensation expense	3	3
Other, net	(1)	(1)
Change in assets and liabilities
Receivables	(37)	7
Inventories	(6)	(4)
Payables and accrued liabilities	(41)	(40)
Other assets and liabilities	(6)	6
Total cash provided by operating activities	32	79
Cash flows from investing activities
Additions to property, plant and equipment	(35)	(35)
Repayments of notes receivable	3	9
Acquisitions of businesses	(14)	(218)
Other investing activities, net	0	(1)
Total cash used in investing activities	(46)	(245)
Cash flows from financing activities
Proceeds from borrowings	30	11
Repayments on borrowings	(31)	0
Repurchases of common stock	(31)	(58)
Cash dividends paid	(23)	(23)
Other financing activities	(8)	(3)
Total cash used in financing activities	(63)	(73)
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash	0	6
Increase (decrease) in cash, cash equivalents, and restricted cash	(77)	(233)
Cash, cash equivalents, and restricted cash - beginning of period	231	761
Cash, cash equivalents, and restricted cash - end of period	$ 154	$ 528

Basis of Presentation and Signi

Basis of Presentation and Significant Accounting Policies	3 Months Ended
	Dec. 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 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, 2021. Certain prior period amounts disclosed herein have been reclassified to conform to the current presentation. Use of estimates, risks and uncertainties 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. Current and future impacts as a result of the pandemic cannot be reasonably quantified or estimated due to its unprecedented nature, breadth, and uncertainties, including the ultimate duration and severity of the pandemic. Strategic separation On October 12, 2021, Valvoline announced its intention to pursue a separation of its two reportable segments, Retail Services and Global Products. Valvoline is evaluating the alternatives to accomplish the separation of these two businesses, and consummation of the separation will be subject to final approval by Valvoline's Board of Directors (the “Board”). No timetable has currently been established for completion of the separation, which is expected to enable the two businesses to enhance focus on their distinct customer bases, strategies and operational needs. Recent accounting pronouncements The following accounting guidance relevant to Valvoline was either issued or adopted in the current year, or is 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. Issued but not yet adopted In March 2020, the FASB issued guidance to simplify the accounting for arrangements modified as a result of reference rate reform as the market transitions from the London Interbank Offered Rate ("LIBOR") and other interbank reference rates to alternative reference rates. This guidance is available to be adopted on a prospective basis through the end of calendar 2022 for qualifying contract modifications and hedging arrangements. The Company has interest rate swap hedging arrangements and U.S.-based variable rate long-term debt for which existing payments are based on LIBOR tenors expected to cease in June 2023. As of December 31, 2021, 28% of Valvoline’s outstanding total long-term debt and $275 million of its interest rate swap agreements are under existing arrangements that mature following LIBOR cessation and do not contain fallback provisions to alternative reference rates. The Company is evaluating its options for these arrangements and expects to adopt this guidance to the

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Dec. 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 December 31, 2021 (In millions) Total Level 1 Level 2 Level 3 NAV (a) Cash and cash equivalents Money market funds $ 1 $ 1 $ — $ — $ — Time deposits 36 — 36 — — Prepaid expenses and other current assets Currency derivatives (b) 2 — 2 — — Other noncurrent assets Non-qualified trust funds 10 — 2 — 8 Interest rate swap agreements 4 — 4 — — Total assets at fair value $ 53 $ 1 $ 44 $ — $ 8 Accrued expenses and other liabilities Currency derivatives (b) $ 1 $ — $ 1 $ — $ — Other noncurrent liabilities Deferred compensation obligations 27 — — — 27 Total liabilities at fair value $ 28 $ — $ 1 $ — $ 27 As of September 30, 2021 (In millions) Total Level 1 Level 2 Level 3 NAV (a) Cash and cash equivalents Money market funds $ 13 $ 13 $ — $ — $ — Time deposits 87 — 87 — — Prepaid expenses and other current assets Currency derivatives (b) 3 — 3 — — Other noncurrent assets Non-qualified trust funds 11 — 4 — 7 Interest rate swap agreements 2 2 — Total assets at fair value $ 116 $ 13 $ 96 $ — $ 7 Accrued expenses and other liabilities Currency derivatives (b) $ 3 $ — $ 3 $ — $ — Interest rate swap agreements 1 — 1 — — Other noncurrent liabilities Deferred compensation obligations 24 — — — 24 Total liabilities at fair value $ 28 $ — $ 4 $ — $ 24 (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 $143 million and $137 million as of December 31, 2021 and September 30, 2021, respectively. There were no material gains or losses recognized in earnings during the three months ended December 31, 2021 or 2020 related to these assets and liabilities. Long-term debt Long-term debt is reported in the Consolidated Balance Sheets at carrying value, rather than fair value, and is therefore excluded from the disclosure above of financial assets and liabilities measured at fair value within the condensed consolidated financial statements on a recurring basis. The fair values of the Company's outstanding fixed rate senior notes shown below are based on recent trading values, which are considered Level 2 inputs within the fair value hierarchy. December 31, 2021 September 30, 2021 (In millions) Fair value Carrying value (a) Unamortized Fair value Carrying value (a) Unamortized 2030 Notes $ 614 $ 593 $ (7) $ 622 $ 593 $ (7) 2031 Notes 523 529 (6) 531 529 (6) Total $ 1,137 $ 1,122 $ (13) $ 1,153 $ 1,122 $ (13) (a) Carrying values shown are net of unamortized discounts and debt issuance costs. Refer to Note 4 for details of these notes as well as Valvoline's other debt instruments that have variable interest rates with carrying amounts that approximate fair value.

Acquisitions and Divestitures

Acquisitions and Divestitures	3 Months Ended
	Dec. 31, 2021
Business Combinations [Abstract]
Acquisitions and Divestitures	The Company acquired 12 service center stores in single and multi-store transactions for an aggregate purchase price of $14 million during the three months ended December 31, 2021. These acquisitions expand Valvoline's retail presence in key North American markets, increase the number of company-operated service center stores, and contributed to growing the Retail Services system to over 1,600 system-wide service center stores. During the three months ended December 31, 2020, the Company acquired 81 service center stores in single and multi-store transactions, including 27 former franchise locations converted to company-owned service center stores and 12 franchise-operated service center stores, for an aggregate purchase price of $218 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 three months ended December 31: (In millions) 2021 2020 Inventories $ — $ 2 Property, plant and equipment 3 79 Operating lease assets 4 23 Goodwill (a) 11 175 Intangible assets (b) Reacquired franchise rights (c) — 33 Other — 3 Other current liabilities — (6) Operating lease liabilities (4) (21) Other noncurrent liabilities — (70) Net assets acquired $ 14 $ 218 (a) 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. (b) Intangible assets acquired during the three months ended December 31, 2020 have weighted average amortization periods of 11 years. (c) Prior to the acquisition of former franchise service center stores, the Company licensed the right to operate franchised service centers, including the use of Valvoline'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.

Debt

Debt	3 Months Ended
	Dec. 31, 2021
Debt Disclosure [Abstract]
Debt	DEBT The following table summarizes Valvoline’s total debt as of: (In millions) December 31 September 30 2021 2031 Notes $ 535 $ 535 2030 Notes 600 600 Term Loan 475 475 Revolver (a) — — Trade Receivables Facility (b) 59 59 China Construction Facility (c) 39 39 China Working Capital Facility (d) — — Debt issuance costs and discounts (14) (14) Total debt 1,694 1,694 Current portion of long-term debt 32 17 Long-term debt $ 1,662 $ 1,677 (a) As of December 31, 2021, the total borrowing capacity remaining under the $475 million revolving credit facility was $471 million due to a reduction of $4 million for letters of credit outstanding. (b) The Trade Receivables Facility had $116 million of borrowing capacity remaining and the wholly-owned financing subsidiary owned $304 million of outstanding accounts receivable as of December 31, 2021. (c) The remaining borrowing capacity under the China Construction Facility was approximately $4 million as of December 31, 2021. (d) The China Working Capital Facility had a borrowing capacity remaining of approximately $24 million as of December 31, 2021. As of December 31, 2021, Valvoline was in compliance with all covenants under its long-term borrowings.

Income Taxes

Income Taxes	3 Months Ended
	Dec. 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 December 31 (In millions) 2021 2020 Income tax expense $ 26 $ 30 Effective tax rate percentage 23.0 % 25.6 %

Employee Benefit Plans

Employee Benefit Plans	3 Months Ended
	Dec. 31, 2021
Retirement Benefits [Abstract]
Employee Benefit Plans	EMPLOYEE BENEFIT PLANS The following table summarizes the components of pension and other postretirement benefit income: Pension benefits Other postretirement benefits (In millions) 2021 2020 2021 2020 Three months ended December 31 Service cost $ — $ 1 $ — $ — Interest cost 11 11 — — Expected return on plan assets (20) (22) — — Amortization of prior service credits — — — (2) Net periodic benefit income $ (9) $ (10) $ — $ (2)

Litigation, Claims and Continge

Litigation, Claims and Contingencies	3 Months Ended
	Dec. 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	3 Months Ended
	Dec. 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 December 31 (In millions, except per share amounts) 2021 2020 Numerator Net income $ 87 $ 87 Denominator Weighted average common shares outstanding 181 185 Effect of potentially dilutive securities (a) 1 1 Weighted average diluted shares outstanding 182 186 Earnings per share Basic $ 0.48 $ 0.47 Diluted $ 0.48 $ 0.47 (a) There were approximately 1 million outstanding stock appreciation rights not included in the computation of diluted earnings per share for the three months ended December 31, 2020, because the effect would have been antidilutive.

Reportable Segment Information

Reportable Segment Information	3 Months Ended
	Dec. 31, 2021
Segment Reporting [Abstract]
Reportable Segment Information	REPORTABLE SEGMENT INFORMATION Valvoline manages its business through the following two reportable segments: • Retail Services - s ervices the passenger car and light truck quick lube market in the United States and Canada with a broad array of preventive maintenance services and capabilities performed through Valvoline’s retail network of company-operated and independent franchised service center stores, in addition to independent Express Care stores that service vehicles with Valvoline products. • Global Products - sells engine and automotive preventive maintenance products in more than 140 countries and territories to mass market and automotive parts retailers, installers, and commercial customers, including original equipment manufacturers (“OEM”), to service light- and heavy-duty 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 allocating resources and evaluating performance of the business. Adjusted EBITDA is the primary measure used in making these operating decisions, which Valvoline defines as segment operating income adjusted for depreciation and amortization and certain key items impacting comparability. Certain indirect expenses are recognized within each segment based on the estimated utilization of indirect resources. Costs to support corporate functions and certain non-operational and corporate activity that is not directly attributable to a particular segment are not included in the segment operating results regularly utilized by the chief operating decision maker. This activity is separately delineated within Corporate to reconcile to consolidated results. Segment financial results The following presents sales and adjusted EBITDA for each reportable segment: Three months ended December 31 (in millions) 2021 2020 Sales Retail Services $ 346 $ 254 Global Products 512 399 Consolidated sales $ 858 $ 653 Adjusted EBITDA Retail Services $ 98 $ 70 Global Products 77 94 Total operating segments 175 164 Corporate (19) (15) Consolidated Adjusted EBITDA 156 149 Reconciliation to income before income taxes: Net interest and other financing expenses (17) (20) Depreciation and amortization (25) (21) Key items: (a) Net pension and other postretirement plan income 9 13 Legacy and separation-related expenses (3) (1) LIFO charge (6) (4) Information technology transition costs (1) — Business interruption recovery — 1 Income before income taxes $ 113 $ 117 (a) Key items represent adjustments to U.S. GAAP results and consist of non-operational matters, including pension and other postretirement plan non-service income and remeasurement adjustments, legacy and separation-related activity, changes in the last-in, first-out ("LIFO") inventory reserve, and certain other corporate matters excluded from operating results that management believes impacts the comparability of operational results between periods. Disaggregation of revenue Sales by primary customer channel for the Company’s reportable segments are summarized below: Three months ended December 31 (In millions) 2021 2020 Retail Services Company operations $ 243 $ 178 Non-company operations 103 76 Total Retail Services 346 254 Global Products Do-It-Yourself 175 140 Installer and other 337 259 Total Global Products 512 399 Consolidated sales $ 858 $ 653 Sales by reportable segment disaggregated by geographic market follows: Retail Services Global Products Total (In millions) 2021 2020 2021 2020 2021 2020 Three months ended December 31 North America (a) $ 346 $ 254 $ 304 $ 235 $ 650 $ 489 Europe, Middle East and Africa ("EMEA") — — 67 51 67 51 Asia Pacific — — 104 83 104 83 Latin America (a) — — 37 30 37 30 Totals $ 346 $ 254 $ 512 $ 399 $ 858 $ 653

Supplemental Financial Informat

Supplemental Financial Information	3 Months Ended
	Dec. 31, 2021
Supplemental Financial Information [Abstract]
Supplemental Financial Information	SUPPLEMENTAL FINANCIAL INFORMATION Cash, cash equivalents and restricted cash The following 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) December 31 September 30 December 31 Cash and cash equivalents $ 152 $ 230 $ 527 Restricted cash (a) 2 1 1 Total cash, cash equivalents and restricted cash $ 154 $ 231 $ 528 (a) Included in Prepaid expenses and other current assets within the Condensed Consolidated Balance Sheets. Accounts and other receivables The following summarizes Valvoline’s accounts and other receivables in the Condensed Consolidated Balance Sheets as of: (In millions) December 31 September 30 Trade $ 513 $ 475 Other 15 16 Notes receivable from franchisees (a) 7 10 Receivables, gross 535 501 Allowance for credit losses (5) (5) Receivables, net $ 530 $ 496 (a) Notes receivable from franchisees were primarily issued in fiscal 2020 to provide financial assistance in response to the COVID-19 pandemic. There were no material balances past due as of December 31, 2021. Inventories The following summarizes Valvoline’s inventories in the Condensed Consolidated Balance Sheets as of: (In millions) December 31 September 30 Finished products $ 277 $ 276 Raw materials, supplies and work in process 60 49 Reserve for LIFO cost valuation (73) (67) Total inventories, net $ 264 $ 258 Revenue recognition The following disaggregates the Company’s sales by timing of recognition: Three months ended December 31 (In millions) 2021 2020 Sales at a point in time $ 844 $ 642 Franchised revenues transferred over time 14 11 Total consolidated sales $ 858 $ 653

Subsequent Events

Subsequent Events	3 Months Ended
	Dec. 31, 2021
Subsequent Events [Abstract]
Subsequent Events	SUBSEQUENT EVENTS Dividend declared On January 24, 2022, the Board declared a quarterly cash dividend of $0.125 per share of Valvoline common stock. The dividend is payable on March 15, 2022 to shareholders of record on February 28, 2022.

Basis of Presentation and Sig_2

Basis of Presentation and Significant Accounting Policies (Policies)	3 Months Ended
	Dec. 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 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, 2021. Certain prior period amounts disclosed herein have been reclassified to conform to the current presentation. Use of estimates, risks and uncertainties 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.
Recent accounting pronouncements	The following accounting guidance relevant to Valvoline was either issued or adopted in the current year, or is 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. Issued but not yet adopted In March 2020, the FASB issued guidance to simplify the accounting for arrangements modified as a result of reference rate reform as the market transitions from the London Interbank Offered Rate ("LIBOR") and other interbank reference rates to alternative reference rates. This guidance is available to be adopted on a prospective basis through the end of calendar 2022 for qualifying contract modifications and hedging arrangements. The Company has interest rate swap hedging arrangements and U.S.-based variable rate long-term debt for which existing payments are based on LIBOR tenors expected to cease in June 2023. As of December 31, 2021, 28% of Valvoline’s outstanding total long-term debt and $275 million of its interest rate swap agreements are under existing arrangements that mature following LIBOR cessation and do not contain fallback provisions to alternative reference rates. The Company is evaluating its options for these arrangements and expects to adopt this guidance to the

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Dec. 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 December 31, 2021 (In millions) Total Level 1 Level 2 Level 3 NAV (a) Cash and cash equivalents Money market funds $ 1 $ 1 $ — $ — $ — Time deposits 36 — 36 — — Prepaid expenses and other current assets Currency derivatives (b) 2 — 2 — — Other noncurrent assets Non-qualified trust funds 10 — 2 — 8 Interest rate swap agreements 4 — 4 — — Total assets at fair value $ 53 $ 1 $ 44 $ — $ 8 Accrued expenses and other liabilities Currency derivatives (b) $ 1 $ — $ 1 $ — $ — Other noncurrent liabilities Deferred compensation obligations 27 — — — 27 Total liabilities at fair value $ 28 $ — $ 1 $ — $ 27 As of September 30, 2021 (In millions) Total Level 1 Level 2 Level 3 NAV (a) Cash and cash equivalents Money market funds $ 13 $ 13 $ — $ — $ — Time deposits 87 — 87 — — Prepaid expenses and other current assets Currency derivatives (b) 3 — 3 — — Other noncurrent assets Non-qualified trust funds 11 — 4 — 7 Interest rate swap agreements 2 2 — Total assets at fair value $ 116 $ 13 $ 96 $ — $ 7 Accrued expenses and other liabilities Currency derivatives (b) $ 3 $ — $ 3 $ — $ — Interest rate swap agreements 1 — 1 — — Other noncurrent liabilities Deferred compensation obligations 24 — — — 24 Total liabilities at fair value $ 28 $ — $ 4 $ — $ 24 (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 $143 million and $137 million as of December 31, 2021 and September 30, 2021, respectively.
Summary of Fair Value of Debt	December 31, 2021 September 30, 2021 (In millions) Fair value Carrying value (a) Unamortized Fair value Carrying value (a) Unamortized 2030 Notes $ 614 $ 593 $ (7) $ 622 $ 593 $ (7) 2031 Notes 523 529 (6) 531 529 (6) Total $ 1,137 $ 1,122 $ (13) $ 1,153 $ 1,122 $ (13)

Acquisitions and Divestitures (

Acquisitions and Divestitures (Tables)	3 Months Ended
	Dec. 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 three months ended December 31: (In millions) 2021 2020 Inventories $ — $ 2 Property, plant and equipment 3 79 Operating lease assets 4 23 Goodwill (a) 11 175 Intangible assets (b) Reacquired franchise rights (c) — 33 Other — 3 Other current liabilities — (6) Operating lease liabilities (4) (21) Other noncurrent liabilities — (70) Net assets acquired $ 14 $ 218 (a) 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. (b) Intangible assets acquired during the three months ended December 31, 2020 have weighted average amortization periods of 11 years. (c) Prior to the acquisition of former franchise service center stores, the Company licensed the right to operate franchised service centers, including the use of Valvoline'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.

Debt (Tables)

Debt (Tables)	3 Months Ended
	Dec. 31, 2021
Debt Disclosure [Abstract]
Schedule of Total Debt	The following table summarizes Valvoline’s total debt as of: (In millions) December 31 September 30 2021 2031 Notes $ 535 $ 535 2030 Notes 600 600 Term Loan 475 475 Revolver (a) — — Trade Receivables Facility (b) 59 59 China Construction Facility (c) 39 39 China Working Capital Facility (d) — — Debt issuance costs and discounts (14) (14) Total debt 1,694 1,694 Current portion of long-term debt 32 17 Long-term debt $ 1,662 $ 1,677 (a) As of December 31, 2021, the total borrowing capacity remaining under the $475 million revolving credit facility was $471 million due to a reduction of $4 million for letters of credit outstanding. (b) The Trade Receivables Facility had $116 million of borrowing capacity remaining and the wholly-owned financing subsidiary owned $304 million of outstanding accounts receivable as of December 31, 2021. (c) The remaining borrowing capacity under the China Construction Facility was approximately $4 million as of December 31, 2021. (d) The China Working Capital Facility had a borrowing capacity remaining of approximately $24 million as of December 31, 2021.

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
	Dec. 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 December 31 (In millions) 2021 2020 Income tax expense $ 26 $ 30 Effective tax rate percentage 23.0 % 25.6 %

Employee Benefit Plans (Tables)

Employee Benefit Plans (Tables)	3 Months Ended
	Dec. 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: Pension benefits Other postretirement benefits (In millions) 2021 2020 2021 2020 Three months ended December 31 Service cost $ — $ 1 $ — $ — Interest cost 11 11 — — Expected return on plan assets (20) (22) — — Amortization of prior service credits — — — (2) Net periodic benefit income $ (9) $ (10) $ — $ (2)

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Dec. 31, 2021
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table summarizes basic and diluted earnings per share: Three months ended December 31 (In millions, except per share amounts) 2021 2020 Numerator Net income $ 87 $ 87 Denominator Weighted average common shares outstanding 181 185 Effect of potentially dilutive securities (a) 1 1 Weighted average diluted shares outstanding 182 186 Earnings per share Basic $ 0.48 $ 0.47 Diluted $ 0.48 $ 0.47 (a) There were approximately 1 million outstanding stock appreciation rights not included in the computation of diluted earnings per share for the three months ended December 31, 2020, because the effect would have been antidilutive.

Reportable Segment Information

Reportable Segment Information (Tables)	3 Months Ended
	Dec. 31, 2021
Segment Reporting [Abstract]
Schedule of Segment Reporting Information	The following presents sales and adjusted EBITDA for each reportable segment: Three months ended December 31 (in millions) 2021 2020 Sales Retail Services $ 346 $ 254 Global Products 512 399 Consolidated sales $ 858 $ 653 Adjusted EBITDA Retail Services $ 98 $ 70 Global Products 77 94 Total operating segments 175 164 Corporate (19) (15) Consolidated Adjusted EBITDA 156 149 Reconciliation to income before income taxes: Net interest and other financing expenses (17) (20) Depreciation and amortization (25) (21) Key items: (a) Net pension and other postretirement plan income 9 13 Legacy and separation-related expenses (3) (1) LIFO charge (6) (4) Information technology transition costs (1) — Business interruption recovery — 1 Income before income taxes $ 113 $ 117 (a) Key items represent adjustments to U.S. GAAP results and consist of non-operational matters, including pension and other postretirement plan non-service income and remeasurement adjustments, legacy and separation-related activity, changes in the last-in, first-out ("LIFO") inventory reserve, and certain other corporate matters excluded from operating results that management believes impacts the comparability of operational results between periods.
Schedule of Disaggregated Revenues	Sales by primary customer channel for the Company’s reportable segments are summarized below: Three months ended December 31 (In millions) 2021 2020 Retail Services Company operations $ 243 $ 178 Non-company operations 103 76 Total Retail Services 346 254 Global Products Do-It-Yourself 175 140 Installer and other 337 259 Total Global Products 512 399 Consolidated sales $ 858 $ 653
Schedule of Sales Disaggregated by Segment and Geographical Area	Sales by reportable segment disaggregated by geographic market follows: Retail Services Global Products Total (In millions) 2021 2020 2021 2020 2021 2020 Three months ended December 31 North America (a) $ 346 $ 254 $ 304 $ 235 $ 650 $ 489 Europe, Middle East and Africa ("EMEA") — — 67 51 67 51 Asia Pacific — — 104 83 104 83 Latin America (a) — — 37 30 37 30 Totals $ 346 $ 254 $ 512 $ 399 $ 858 $ 653 (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)	3 Months Ended
	Dec. 31, 2021
Supplemental Financial Information [Abstract]
Schedule of Cash and Cash Equivalents	The following 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) December 31 September 30 December 31 Cash and cash equivalents $ 152 $ 230 $ 527 Restricted cash (a) 2 1 1 Total cash, cash equivalents and restricted cash $ 154 $ 231 $ 528
Summary of Accounts Receivable	The following summarizes Valvoline’s accounts and other receivables in the Condensed Consolidated Balance Sheets as of: (In millions) December 31 September 30 Trade $ 513 $ 475 Other 15 16 Notes receivable from franchisees (a) 7 10 Receivables, gross 535 501 Allowance for credit losses (5) (5) Receivables, net $ 530 $ 496
Summary of Inventory	The following summarizes Valvoline’s inventories in the Condensed Consolidated Balance Sheets as of: (In millions) December 31 September 30 Finished products $ 277 $ 276 Raw materials, supplies and work in process 60 49 Reserve for LIFO cost valuation (73) (67) Total inventories, net $ 264 $ 258
Disaggregation of Sales by Timing of Revenue Recognized	The following disaggregates the Company’s sales by timing of recognition: Three months ended December 31 (In millions) 2021 2020 Sales at a point in time $ 844 $ 642 Franchised revenues transferred over time 14 11 Total consolidated sales $ 858 $ 653

Basis of Presentation and Sig_3

Basis of Presentation and Significant Accounting Policies (Details) - USD ($) $ in Millions	Dec. 31, 2021	Sep. 30, 2021
Interest Rate Swap [Member]
Derivative, Notional Amount	$ 275
Fair Value, Measurements, Recurring
Interest Rate Derivative Assets, at Fair Value	4	$ 2
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring
Interest Rate Derivative Assets, at Fair Value	$ 4	$ 2
LIBOR
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate	28.00%

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Assets and Liabilities at Fair Value (Details) - USD ($) $ in Millions	Dec. 31, 2021	Sep. 30, 2021
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument
Liabilities, Fair Value Disclosure [Abstract]
Derivative, Notional Amount	$ 143	$ 137
Interest Rate Swap [Member]
Liabilities, Fair Value Disclosure [Abstract]
Derivative, Notional Amount	275
Fair Value, Inputs, Level 1 [Member]
Other noncurrent assets
Assets, Fair Value Disclosure	1	13
Fair Value, Inputs, Level 2 [Member]
Other noncurrent assets
Assets, Fair Value Disclosure	44	96
Liabilities, Fair Value Disclosure [Abstract]
Financial and Nonfinancial Liabilities, Fair Value Disclosure	1	4
Fair Value Measured at Net Asset Value Per Share
Other noncurrent assets
Non-qualified trust funds	8	7
Liabilities, Fair Value Disclosure [Abstract]
Deferred compensation obligations	27	24
Fair Value, Measurements, Recurring
Prepaid Expense and Other Assets, Current [Abstract]
Currency derivatives	2	3
Other noncurrent assets
Non-qualified trust funds	10	11
Interest Rate Derivative Assets, at Fair Value	4	2
Assets, Fair Value Disclosure	53	116
Liabilities, Fair Value Disclosure [Abstract]
Currency derivatives	1	3
Interest rate swap agreements		1
Deferred compensation obligations	27	24
Financial and Nonfinancial Liabilities, Fair Value Disclosure	28	28
Fair Value, Measurements, Recurring | Money Market Funds [Member]
Cash and cash equivalents
Cash and Cash Equivalents, Fair Value Disclosure	1	13
Fair Value, Measurements, Recurring | Time deposits
Cash and cash equivalents
Cash and Cash Equivalents, Fair Value Disclosure	36	87
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	1	13
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 [Member]
Prepaid Expense and Other Assets, Current [Abstract]
Currency derivatives	2	3
Other noncurrent assets
Non-qualified trust funds	2	4
Interest Rate Derivative Assets, at Fair Value	4	2
Liabilities, Fair Value Disclosure [Abstract]
Currency derivatives	1	3
Interest rate swap agreements		1
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 [Member] | Time deposits
Cash and cash equivalents
Cash and Cash Equivalents, Fair Value Disclosure	36	87
Fair Value, Measurements, Recurring | Fair Value Measured at Net Asset Value Per Share
Other noncurrent assets
Non-qualified trust funds	8	7
Liabilities, Fair Value Disclosure [Abstract]
Deferred compensation obligations	$ 27	$ 24

Fair Value Measurements - Narra

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

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value of Debt (Details) - USD ($) $ in Millions	Dec. 31, 2021	Sep. 30, 2021
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Unamortized discounts and issuance costs	$ 14	$ 14
Fair Value, Inputs, Level 2 [Member] | Fair value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	1,137	1,153
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	614	622
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	523	531
Fair Value, Inputs, Level 2 [Member] | Carrying value (a)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	1,122	1,122
Unamortized discounts and issuance costs	(13)	(13)
Fair Value, Inputs, Level 2 [Member] | Carrying value (a) | Senior Notes | Senior Unsecured Notes Due 2030 [Domain]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	593	593
Unamortized discounts and issuance costs	(7)	(7)
Fair Value, Inputs, Level 2 [Member] | Carrying value (a) | Senior Notes | Senior Unsecured Notes Due 2031 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	529	529
Unamortized discounts and issuance costs	$ (6)	$ (6)

Acquisitions and Divestitures -

Acquisitions and Divestitures - Narrative (Details) $ in Millions	3 Months Ended
	Dec. 31, 2021USD ($)service_center_store	Dec. 31, 2020USD ($)service_center_store
Business Acquisition [Line Items]
Number of service center stores acquired	12	81
Number of franchise-operated service center stores acquired		12
Consideration for acquisition | $	$ 14	$ 218
Number of System-wide Service Center Stores	1,600
Business Acquisition, Number of Former Franchise Service Centers Converted		27

Acquisitions and Divestitures_2

Acquisitions and Divestitures - Schedule of Aggregate Cash Consideration and Total Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Business Acquisition [Line Items]
Inventory	$ 0	$ 2
Property plant and equipment	3	79
Operating lease assets	4	23
Goodwill (a)	11	175
Other Current Liabilities	0	(6)
Operating Lease Liabilities	(4)	(21)
Other noncurrent liabilities	0	(70)
Net assets acquired	14	218
Consideration transferred	14	$ 218
Weighted average amortization period		11 years
Reacquired franchise rights (c)
Business Acquisition [Line Items]
Intangible assets	0	$ 33
Gain (Loss) on Contract Termination	$ 0
Weighted average amortization period	11 years
Other
Business Acquisition [Line Items]
Intangible assets	$ 0	$ 3

Debt - Schedule of Short-Term B

Debt - Schedule of Short-Term Borrowings and Long Term Debt (Details) - USD ($)	Dec. 31, 2021	Sep. 30, 2021
Debt Instrument [Line Items]
Debt issuance costs and discounts	$ (14,000,000)	$ (14,000,000)
Total debt	1,694,000,000	1,694,000,000
Current portion of long-term debt	32,000,000	17,000,000
Long-term debt	1,662,000,000	1,677,000,000
Line of Credit | Revolver (a)
Debt Instrument [Line Items]
Long-term debt	0	0
Senior Unsecured Notes Due 2031 [Member] | Senior Notes
Debt Instrument [Line Items]
Aggregate principal amount	535,000,000	535,000,000
Senior Unsecured Notes Due 2030 [Domain] | Senior Notes
Debt Instrument [Line Items]
Aggregate principal amount	600,000,000	600,000,000
Term Loan | Line of Credit
Debt Instrument [Line Items]
Debt gross	475,000,000	475,000,000
Term Loan | Line of Credit | Revolver (a)
Debt Instrument [Line Items]
Debt gross	475,000,000
Total borrowing capacity remaining	471,000,000
Letters of credit outstanding	4,000,000
Trade Receivables Facility (b) | Line of Credit | Secured Debt
Debt Instrument [Line Items]
Long-term debt	59,000,000	59,000,000
Total borrowing capacity remaining	116,000,000
Trade Receivables Facility (b) | Line of Credit | Secured Debt | Financing Subsidiary
Debt Instrument [Line Items]
Accounts receivable pledged as collateral	304,000,000
Construction Credit Facility [Member] | CHINA
Debt Instrument [Line Items]
Long-term debt	39,000,000	39,000,000
Total borrowing capacity remaining	4,000,000
Working Capital Loan [Member] | CHINA
Debt Instrument [Line Items]
Other Long -term debt	0	$ 0
Total borrowing capacity remaining	$ 24,000,000

Income Taxes - Schedule of Inco

Income Taxes - Schedule of Income Tax Expense and Effective Tax Rate (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Income tax expense	$ 26	$ 30
Effective tax rate percentage	23.00%	25.60%

Employee Benefit Plans - Compon

Employee Benefit Plans - Components of Pension and Other Postretirement Benefit Income (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 0	$ 1
Interest cost	11	11
Expected return on plan assets	(20)	(22)
Amortization of prior service credits	0	0
Net periodic benefit income	(9)	(10)
Other Postretirement Benefits Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	0	0
Interest cost	0	0
Expected return on plan assets	0	0
Amortization of prior service credits	0	(2)
Net periodic benefit income	$ 0	$ (2)

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Numerator
Net income	$ 87	$ 87
Denominator
Weighted-average common shares outstanding (shares)	181	185
Effect of potentially dilutive securities (shares)	1	1
Weighted average diluted shares outstanding (shares)	182	186
Earnings per share
Basic (usd per share)	$ 0.48	$ 0.47
Diluted (usd per share)	$ 0.48	$ 0.47
Shares excluded from diluted earnings per share calculation due to anti-dilutive effect (shares)		1

Reportable Segment Informatio_2

Reportable Segment Information - Sales and Operating Income by Reportable Segment (Details) $ in Millions	3 Months Ended
	Dec. 31, 2021USD ($)numberOfCountriesReportable_segment	Dec. 31, 2020USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | Reportable_segment	2
Number of countries where our products are sold | numberOfCountries	140
Sales	$ 858	$ 653
Adjusted Earnings Before Interest Taxes Depreciation and Amortization	156	149
Net interest and other financing expenses	(17)	(20)
Depreciation and amortization	(25)	(21)
Net pension and other postretirement plan income	9	13
Legacy and separation-related expenses	(3)	(1)
LIFO charge	(6)	(4)
Information Technology and Data Processing	(1)	0
Business interruption recovery	0	1
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest	113	117
Retail Services
Segment Reporting Information [Line Items]
Sales	346	254
Global Products
Segment Reporting Information [Line Items]
Sales	512	399
Operating Segments
Segment Reporting Information [Line Items]
Sales	858	653
Adjusted Earnings Before Interest Taxes Depreciation and Amortization	175	164
Operating Segments | Retail Services
Segment Reporting Information [Line Items]
Sales	346	254
Adjusted Earnings Before Interest Taxes Depreciation and Amortization	98	70
Operating Segments | Global Products
Segment Reporting Information [Line Items]
Sales	512	399
Adjusted Earnings Before Interest Taxes Depreciation and Amortization	77	94
Corporate, Non-Segment
Segment Reporting Information [Line Items]
Adjusted Earnings Before Interest Taxes Depreciation and Amortization	$ (19)	$ (15)

Reportable Segment Informatio_3

Reportable Segment Information - Disaggregation of Revenues by Reportable Segments (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Segment Reporting Information [Line Items]
Sales	$ 858	$ 653
Operating Segments
Segment Reporting Information [Line Items]
Sales	858	653
Retail Services
Segment Reporting Information [Line Items]
Sales	346	254
Retail Services | Operating Segments
Segment Reporting Information [Line Items]
Sales	346	254
Global Products
Segment Reporting Information [Line Items]
Sales	512	399
Global Products | Operating Segments
Segment Reporting Information [Line Items]
Sales	512	399
Company operations | Retail Services
Segment Reporting Information [Line Items]
Sales	243	178
Non-company operations | Retail Services
Segment Reporting Information [Line Items]
Sales	103	76
Do-It-Yourself | Global Products
Segment Reporting Information [Line Items]
Sales	175	140
Installer and other | Global Products
Segment Reporting Information [Line Items]
Sales	$ 337	$ 259

Reportable Segment Informatio_4

Reportable Segment Information - Disaggregation of Revenues by Geographical Market (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Segment Reporting Information [Line Items]
Sales	$ 858	$ 653
Operating Segments
Segment Reporting Information [Line Items]
Sales	858	653
Retail Services
Segment Reporting Information [Line Items]
Sales	346	254
Retail Services | Operating Segments
Segment Reporting Information [Line Items]
Sales	346	254
Global Products
Segment Reporting Information [Line Items]
Sales	512	399
Global Products | Operating Segments
Segment Reporting Information [Line Items]
Sales	512	399
North America
Segment Reporting Information [Line Items]
Sales	650	489
North America | Retail Services
Segment Reporting Information [Line Items]
Sales	346	254
North America | Global Products
Segment Reporting Information [Line Items]
Sales	304	235
EMEA
Segment Reporting Information [Line Items]
Sales	67	51
EMEA | Retail Services
Segment Reporting Information [Line Items]
Sales	0	0
EMEA | Global Products
Segment Reporting Information [Line Items]
Sales	67	51
Asia Pacific
Segment Reporting Information [Line Items]
Sales	104	83
Asia Pacific | Retail Services
Segment Reporting Information [Line Items]
Sales	0	0
Asia Pacific | Global Products
Segment Reporting Information [Line Items]
Sales	104	83
Latin America
Segment Reporting Information [Line Items]
Sales	37	30
Latin America | Retail Services
Segment Reporting Information [Line Items]
Sales	0	0
Latin America | Global Products
Segment Reporting Information [Line Items]
Sales	$ 37	$ 30

Supplemental Financial Inform_3

Supplemental Financial Information - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions	Dec. 31, 2021	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020
Supplemental Financial Information [Abstract]
Cash and cash equivalents	$ 152	$ 230	$ 527
Restricted cash	2	1	1
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	$ 154	$ 231	$ 528	$ 761

Supplemental Financial Inform_4

Supplemental Financial Information - Summary of Accounts Receivable (Details) - USD ($) $ in Millions	Dec. 31, 2021	Sep. 30, 2021
Current
Trade	$ 513	$ 475
Other	15	16
Notes receivable from franchisees	7	10
Receivables, gross	535	501
Allowance for credit losses	(5)	(5)
Receivables, net	$ 530	$ 496

Supplemental Financial Inform_5

Supplemental Financial Information - Inventory (Details) - USD ($) $ in Millions	Dec. 31, 2021	Sep. 30, 2021
Supplemental Financial Information [Abstract]
Inventory, Finished Goods, Gross	$ 277	$ 276
Inventory, Work in Process and Raw Materials	60	49
Inventory, LIFO Reserve	(73)	(67)
Inventories, net	$ 264	$ 258

Supplemental Financial Inform_6

Supplemental Financial Information - Revenue Recognition and Deferred Revenue (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Timing of Transfer
Sales	$ 858	$ 653
Transferred over Time [Member]
Timing of Transfer
Sales	14	11
Transferred at Point in Time [Member]
Timing of Transfer
Sales	$ 844	$ 642

Subsequent Events (Details)

Subsequent Events (Details)	Jan. 24, 2022$ / shares
Subsequent Event
Subsequent Event [Line Items]
Dividend per share (usd per share)	$ 0.125