Valvoline (VVV) 10-Q 10 May 22 2022 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Mar. 31, 2022	Apr. 30, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
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		178,197,668
Entity Central Index Key	0001674910
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2022
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, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Net Income (Loss) Attributable to Parent [Abstract]
Sales	$ 886	$ 701	$ 1,744	$ 1,354
Cost of sales	636	454	1,250	879
Gross profit	250	247	494	475
Selling, general and administrative expenses	137	129	272	246
Legacy and separation-related expenses	6	0	9	1
Equity and other income, net	(10)	(13)	(25)	(27)
Operating Income (Loss), Total	117	131	238	255
Net pension and other postretirement plan income	(9)	(14)	(18)	(27)
Net interest and other financing expenses	18	55	35	75
Income before income taxes	108	90	221	207
Income tax expense	27	22	53	52
Net Income (Loss) Attributable to Parent, Total	$ 81	$ 68	$ 168	$ 155
NET EARNINGS PER SHARE
Basic (usd per share)	$ 0.45	$ 0.37	$ 0.93	$ 0.84
Diluted (usd per share)	$ 0.45	$ 0.37	$ 0.93	$ 0.84
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic (shares)	180	182	180	184
Diluted (shares)	181	183	181	184
COMPREHENSIVE INCOME
Net income	$ 81	$ 68	$ 168	$ 155
Other comprehensive income (loss), net of tax
Currency translation adjustments	0	(7)	0	11
Amortization of pension and other postretirement plan prior service credits	(1)	(2)	(1)	(4)
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax	7	1	8	1
Other comprehensive income (loss)	6	(8)	7	8
Comprehensive income	$ 87	$ 60	$ 175	$ 163

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) shares in Millions, $ in Millions	Mar. 31, 2022	Sep. 30, 2021
Assets, Current [Abstract]
Cash and cash equivalents	$ 118	$ 230
Receivables, Net, Current	563	496
Inventories, net	276	258
Prepaid expenses and other current assets	59	53
Total current assets	1,016	1,037
Noncurrent assets
Property, plant and equipment, net	843	817
Operating Lease, Right-of-Use Asset	313	307
Goodwill and intangibles, net	788	775
Equity method investments	53	47
Deferred income taxes	13	14
Other Assets, Noncurrent	222	194
Total noncurrent assets	2,232	2,154
Total assets	3,248	3,191
Current liabilities
Current portion of long-term debt	47	17
Trade and other payables	238	246
Accrued expenses and other liabilities	300	306
Total current liabilities	585	569
Noncurrent liabilities
Long-term debt	1,648	1,677
Employee benefit obligations	237	258
Operating lease liabilities	280	274
Deferred income taxes	42	26
Other noncurrent liabilities	256	252
Total noncurrent liabilities	2,463	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; 179 and 180 shares issued and outstanding at March 31, 2022 and September 30, 2021, respectively	2	2
Paid-in capital	36	35
Retained earnings	147	90
Accumulated other comprehensive income	15	8
Total stockholders’ equity	200	135
Total liabilities and stockholders’ equity	$ 3,248	$ 3,191
Common stock outstanding (shares)	179	180
Common stock issued (shares)	179	180

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2022	Sep. 30, 2021
Statement of Financial Position [Abstract]
Preferred stock, par value (usd per share)	$ 0	$ 0
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)	179,000,000	180,000,000
Common stock outstanding (shares)	179,000,000	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 [Member]	Common stock	Paid-in capital	Retained earnings	Accumulated other comprehensive income
Common stock outstanding, at beginning of period (shares) at Sep. 30, 2020			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 plans	(1)			(1)
Stock Repurchased and Retired During Period, Shares			2
Repurchases of common stock	(58)				(58)
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
Common stock outstanding, at beginning of period (shares) at Sep. 30, 2020			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
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 plans	(4)			(4)
Stock Repurchased and Retired During Period, Shares			2
Repurchases of common stock	(42)				(42)
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
Balance at end of period at Mar. 31, 2021	$ (56)		$ 2	29	(103)	16
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)
Stock Repurchased and Retired During Period, Shares			0
Repurchases of common stock	(31)				(31)
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
Balance at end of period at Dec. 31, 2021	$ 167		$ 2	33	123	9
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	168
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	$ 7
Common stock outstanding, at end of period (shares) at Mar. 31, 2022	179		179
Balance at end of period at Mar. 31, 2022	$ 200		$ 2	36	147	15
Common stock outstanding, at beginning of period (shares) at Dec. 31, 2021			180
Balance at beginning of period at Dec. 31, 2021	167		$ 2	33	123	9
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	81				81
Dividends paid	(22)				(22)
Stock-based compensation plans	(3)			(3)
Stock Repurchased and Retired During Period, Shares			1
Repurchases of common stock	(35)				(35)
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	$ 6					6
Common stock outstanding, at end of period (shares) at Mar. 31, 2022	179		179
Balance at end of period at Mar. 31, 2022	$ 200		$ 2	$ 36	$ 147	$ 15

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Deficit (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Statement of Stockholders' Equity [Abstract]
Dividends paid per common share (usd per share)	$ 0.125	$ 0.125	$ 0.125	$ 0.125

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash flows from operating activities
Net income	$ 168	$ 155
Adjustments to reconcile net income to cash flows from operating activities
Loss on extinguishment of debt	0	36
Depreciation and amortization	50	44
Deferred income taxes	15	0
Payment for Pension Benefits	(1)	(4)
Stock-based compensation expense	7	6
Other, net	(3)	2
Change in assets and liabilities
Receivables	(74)	(14)
Inventories	(19)	(13)
Payables and accrued liabilities	0	4
Other assets and liabilities	(47)	(26)
Total cash provided by operating activities	96	190
Cash flows from investing activities
Additions to property, plant and equipment	(67)	(74)
Notes receivable, net		(12)
Repayments of notes receivable		12
Repayments of notes receivable	5
Acquisitions of businesses	(23)	(223)
Other investing activities, net	1	9
Total cash used in investing activities	(84)	(276)
Cash flows from financing activities
Proceeds from borrowings	185	546
Repayments on borrowings	(186)	(800)
Payment for Debt Extinguishment or Debt Prepayment Cost	0	(26)
Repurchases of common stock	(66)	(100)
Cash dividends paid	(45)	(46)
Other financing activities	(12)	(5)
Total cash used in financing activities	(124)	(431)
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash	1	4
Increase (decrease) in cash, cash equivalents, and restricted cash	(111)	(513)
Cash, cash equivalents, and restricted cash - beginning of period	231	761
Cash, cash equivalents, and restricted cash - end of period	$ 120	$ 248

Basis of Presentation and Signi

Basis of Presentation and Significant Accounting Policies	6 Months Ended
	Mar. 31, 2022
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 is subject to continued risks and uncertainties as a result of the COVID-19 pandemic. The extent to which the evolving pandemic impacts the Company's financial condition cannot be reasonably quantified or estimated and will depend on a number of factors including the ultimate magnitude and duration of the pandemic. The Company has substantially maintained its operations throughout the pandemic and continues to place additional emphasis on the safety and wellness of its employees and customers. 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 related to reference rate reform that simplifies the accounting for contract modifications and hedging arrangements as the market transitions from the London Interbank Offered Rate ("LIBOR") and other interbank reference rates to alternative reference rates. This guidance can be applied on a prospective basis through the end of December 2022 for qualifying modified arrangements. The Company has interest rate swap hedging arrangements and variable rate long-term debt for which existing payments are based on LIBOR tenors expected to cease in June 2023. As of March 31, 2022, 29% 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 expects to adopt this guidance to the extent there are qualifying contractual modifications prior to the end of

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Mar. 31, 2022
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, 2022 (In millions) Total Level 1 Level 2 Level 3 NAV (a) Cash and cash equivalents Time deposits $ 20 $ — $ 20 $ — $ — Prepaid expenses and other current assets Currency derivatives (b) 4 — 4 — — Other noncurrent assets Non-qualified trust funds 8 — — — 8 Interest rate swap agreements 12 — 12 — — Total assets at fair value $ 44 $ — $ 36 $ — $ 8 Accrued expenses and other liabilities Currency derivatives (b) $ 5 $ — $ 5 $ — $ — Other noncurrent liabilities Deferred compensation obligations 24 — — — 24 Total liabilities at fair value $ 29 $ — $ 5 $ — $ 24 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 $150 million and $137 million as of March 31, 2022 and September 30, 2021, respectively. There were no material gains or losses recognized in earnings during the three and six months ended March 31, 2022 or 2021 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. March 31, 2022 September 30, 2021 (In millions) Fair value Carrying value (a) Unamortized Fair value Carrying value (a) Unamortized 2030 Notes $ 549 $ 593 $ (7) $ 622 $ 593 $ (7) 2031 Notes 464 529 (6) 531 529 (6) Total $ 1,013 $ 1,122 $ (13) $ 1,153 $ 1,122 $ (13) (a) Carrying values shown are net of unamortized discounts and debt issuance costs. Refer to Note 5 for details of these senior notes as well as Valvoline's other debt instruments that have variable interest rates with carrying amounts that approximate fair value.

Acquisitions

Acquisitions	6 Months Ended
	Mar. 31, 2022
Business Combinations [Abstract]
Acquisitions	ACQUISITIONS The Company acquired 21 service center stores in single and multi-store transactions for an aggregate purchase price of $23 million during the six months ended March 31, 2022. 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 1,650 system-wide service center stores. During the six months ended March 31, 2021, the Company acquired 100 service center stores in single and multi-store transactions, including 28 former franchise locations converted to company-owned service center stores and 12 franchise-operated service center stores, for an aggregate purchase price of $223 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) 2022 2021 Inventories $ — $ 2 Other current assets — 1 Property, plant and equipment 3 82 Operating lease assets 7 26 Goodwill (a) 20 180 Intangible assets (b) Reacquired franchise rights (c) — 34 Other — 3 Other current liabilities — (7) Operating lease liabilities (7) (24) Other noncurrent liabilities — (74) Net assets acquired $ 23 $ 223 (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 six months ended March 31, 2021 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.

Goodwill and Other Intangibles

Goodwill and Other Intangibles	6 Months Ended
	Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	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, 2022: (In millions) Retail Services Global Products Total Balance at September 30, 2021 $ 513 $ 131 $ 644 Acquisitions (a) 20 — 20 Currency translation 1 — 1 Balance at March 31, 2022 $ 534 $ 131 $ 665 (a) Includes acquisitions within the Retail Services reportable segment of 21 service center stores. Refer to Note 3 for additional details.

Debt

Debt	6 Months Ended
	Mar. 31, 2022
Debt Disclosure [Abstract]
Debt	DEBT The following table summarizes Valvoline’s total debt as of: (In millions) March 31 September 30 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 Facilities (d) — — Debt issuance costs and discounts (13) (14) Total debt 1,695 1,694 Current portion of long-term debt 47 17 Long-term debt $ 1,648 $ 1,677 (a) As of March 31, 2022, 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 $321 million of outstanding accounts receivable as of March 31, 2022. (c) The remaining borrowing capacity under the China Construction Facility was approximately $4 million as of March 31, 2022. (d) The China Working Capital Facilities include two revolving credit facilities with no outstanding borrowings and a combined capacity of approximately $36 million as of March 31, 2022. These facilities expire in the first quarter of fiscal 2023 and bear interest at the local prime rate. As of March 31, 2022, Valvoline was in compliance with all covenants under its long-term borrowings.

Income Taxes

Income Taxes	6 Months Ended
	Mar. 31, 2022
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) 2022 2021 2022 2021 Income tax expense $ 27 $ 22 $ 53 $ 52 Effective tax rate percentage 25.0 % 24.4 % 24.0 % 25.1 % The increase in income tax expense for the three months ended March 31, 2022 was principally driven by higher pre-tax earnings, in addition to an increased effective tax rate due to unfavorable discrete activity. Income tax expense remained relatively flat with higher pre-tax earnings in the six months ended March 31, 2022, resulting in a lower effective tax rate that was driven by discrete benefits in the current year-to-date period.

Employee Benefit Plans

Employee Benefit Plans	6 Months Ended
	Mar. 31, 2022
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) 2022 2021 2022 2021 Three months ended March 31 Service cost $ 1 $ — $ — $ — Interest cost 11 11 1 — Expected return on plan assets (20) (21) — — Amortization of prior service credits — — (1) (4) Net periodic benefit income $ (8) $ (10) $ — $ (4) Six months ended March 31 Service cost $ 1 $ 1 $ — $ — Interest cost 22 22 1 — Expected return on plan assets (40) (43) — — Amortization of prior service credit — — (1) (6) Net periodic benefit income $ (17) $ (20) $ — $ (6)

Litigation, Claims and Continge

Litigation, Claims and Contingencies	6 Months Ended
	Mar. 31, 2022
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, 2022
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) 2022 2021 2022 2021 Numerator Net income $ 81 $ 68 $ 168 $ 155 Denominator Weighted average common shares outstanding 180 182 180 184 Effect of potentially dilutive securities 1 1 1 — Weighted average diluted shares outstanding 181 183 181 184 Earnings per share Basic $ 0.45 $ 0.37 $ 0.93 $ 0.84 Diluted $ 0.45 $ 0.37 $ 0.93 $ 0.84

Reportable Segment Information

Reportable Segment Information	6 Months Ended
	Mar. 31, 2022
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 Six months ended March 31 March 31 (in millions) 2022 2021 2022 2021 Sales Retail Services $ 350 $ 285 $ 696 $ 539 Global Products 536 416 1,048 815 Consolidated sales $ 886 $ 701 $ 1,744 $ 1,354 Adjusted EBITDA Retail Services $ 95 $ 95 $ 193 $ 165 Global Products 81 80 158 174 Total operating segments 176 175 351 339 Corporate (18) (18) (37) (33) Consolidated Adjusted EBITDA 158 157 314 306 Reconciliation to income before income taxes: Net interest and other financing expenses (18) (55) (35) (75) Depreciation and amortization (25) (23) (50) (44) Key items: (a) Net pension and other postretirement plan income 9 14 18 27 Legacy and separation-related expenses (6) — (9) (1) LIFO charge (3) (5) (9) (9) Business interruption losses (recoveries) (5) 2 (5) 3 Information technology transition costs (2) — (3) — Income before income taxes $ 108 $ 90 $ 221 $ 207 (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 Six months ended March 31 March 31 (In millions) 2022 2021 2022 2021 Retail Services Company operations $ 246 $ 204 $ 489 $ 382 Non-company operations 104 81 207 157 Total Retail Services 350 285 696 539 Global Products Do-It-Yourself 190 147 365 287 Installer and other 346 269 683 528 Total Global Products 536 416 1,048 815 Consolidated sales $ 886 $ 701 $ 1,744 $ 1,354 Sales by reportable segment disaggregated by geographic market follows: Retail Services Global Products Total (In millions) 2022 2021 2022 2021 2022 2021 Three months ended March 31 North America (a) $ 350 $ 285 $ 330 $ 242 $ 680 $ 527 Europe, Middle East and Africa ("EMEA") — — 67 54 67 54 Asia Pacific — — 98 88 98 88 Latin America (a) — — 41 32 41 32 Totals $ 350 $ 285 $ 536 $ 416 $ 886 $ 701 Six months ended March 31 North America (a) $ 696 $ 539 $ 634 $ 477 $ 1,330 $ 1,016 EMEA — — 134 105 134 105 Asia Pacific — — 202 171 202 171 Latin America (a) — — 78 62 78 62 Totals $ 696 $ 539 $ 1,048 $ 815 $ 1,744 $ 1,354

Supplemental Financial Informat

Supplemental Financial Information	6 Months Ended
	Mar. 31, 2022
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) March 31 September 30 March 31 Cash and cash equivalents $ 118 $ 230 $ 247 Restricted cash (a) 2 1 1 Total cash, cash equivalents and restricted cash $ 120 $ 231 $ 248 (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) March 31 September 30 Trade $ 551 $ 475 Other 16 16 Notes receivable from franchisees (a) 5 10 Receivables, gross 572 501 Allowance for credit losses (9) (5) Receivables, net $ 563 $ 496 (a) Notes receivable from franchisees were primarily issued in fiscal 2020 to provide financial assistance in response to the COVID-19 pandem ic. There were no material balance s past due as of March 31, 2022. Inventories The following summarizes Valvoline’s inventories in the Condensed Consolidated Balance Sheets as of: (In millions) March 31 September 30 Finished products $ 288 $ 276 Raw materials, supplies and work in process 64 49 Reserve for LIFO cost valuation (76) (67) Total inventories, net $ 276 $ 258 Revenue recognition The following disaggregates the Company’s sales by timing of recognition: Three months ended Six months ended March 31 March 31 (In millions) 2022 2021 2022 2021 Sales at a point in time $ 872 $ 689 $ 1,716 $ 1,331 Franchised revenues transferred over time 14 12 $ 28 23 Total consolidated sales $ 886 $ 701 $ 1,744 $ 1,354

Subsequent Events

Subsequent Events	6 Months Ended
	Mar. 31, 2022
Subsequent Events [Abstract]
Subsequent Events	SUBSEQUENT EVENTS Dividend declared On April 21, 2022, the Board declared a quarterly cash dividend of $0.125 per share of Valvoline common stock. The dividend is payable on June 15, 2022 to shareholders of record on May 31, 2022.

Basis of Presentation and Sig_2

Basis of Presentation and Significant Accounting Policies (Policies)	6 Months Ended
	Mar. 31, 2022
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. Valvoline is subject to continued risks and uncertainties as a result of the COVID-19 pandemic. The extent to which the evolving pandemic impacts the Company's financial condition cannot be reasonably quantified or estimated and will depend on a number of factors including the ultimate magnitude and duration of the pandemic. The Company has substantially maintained its operations throughout the pandemic and continues to place additional emphasis on the safety and wellness of its employees and customers.
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 related to reference rate reform that simplifies the accounting for contract modifications and hedging arrangements as the market transitions from the London Interbank Offered Rate ("LIBOR") and other interbank reference rates to alternative reference rates. This guidance can be applied on a prospective basis through the end of December 2022 for qualifying modified arrangements. The Company has interest rate swap hedging arrangements and variable rate long-term debt for which existing payments are based on LIBOR tenors expected to cease in June 2023. As of March 31, 2022, 29% 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 expects to adopt this guidance to the extent there are qualifying contractual modifications prior to the end of

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Mar. 31, 2022
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, 2022 (In millions) Total Level 1 Level 2 Level 3 NAV (a) Cash and cash equivalents Time deposits $ 20 $ — $ 20 $ — $ — Prepaid expenses and other current assets Currency derivatives (b) 4 — 4 — — Other noncurrent assets Non-qualified trust funds 8 — — — 8 Interest rate swap agreements 12 — 12 — — Total assets at fair value $ 44 $ — $ 36 $ — $ 8 Accrued expenses and other liabilities Currency derivatives (b) $ 5 $ — $ 5 $ — $ — Other noncurrent liabilities Deferred compensation obligations 24 — — — 24 Total liabilities at fair value $ 29 $ — $ 5 $ — $ 24 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 $150 million and $137 million as of March 31, 2022 and September 30, 2021, respectively.
Summary of Fair Value of Debt	March 31, 2022 September 30, 2021 (In millions) Fair value Carrying value (a) Unamortized Fair value Carrying value (a) Unamortized 2030 Notes $ 549 $ 593 $ (7) $ 622 $ 593 $ (7) 2031 Notes 464 529 (6) 531 529 (6) Total $ 1,013 $ 1,122 $ (13) $ 1,153 $ 1,122 $ (13)

Acquisitions and Divestitures (

Acquisitions and Divestitures (Tables)	6 Months Ended
	Mar. 31, 2022
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) 2022 2021 Inventories $ — $ 2 Other current assets — 1 Property, plant and equipment 3 82 Operating lease assets 7 26 Goodwill (a) 20 180 Intangible assets (b) Reacquired franchise rights (c) — 34 Other — 3 Other current liabilities — (7) Operating lease liabilities (7) (24) Other noncurrent liabilities — (74) Net assets acquired $ 23 $ 223 (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 six months ended March 31, 2021 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.

Goodwill and Other Intangibles

Goodwill and Other Intangibles (Tables)	6 Months Ended
	Mar. 31, 2022
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, 2022: (In millions) Retail Services Global Products Total Balance at September 30, 2021 $ 513 $ 131 $ 644 Acquisitions (a) 20 — 20 Currency translation 1 — 1 Balance at March 31, 2022 $ 534 $ 131 $ 665 (a) Includes acquisitions within the Retail Services reportable segment of 21 service center stores. Refer to Note 3 for additional details.

Debt (Tables)

Debt (Tables)	6 Months Ended
	Mar. 31, 2022
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 $ 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 Facilities (d) — — Debt issuance costs and discounts (13) (14) Total debt 1,695 1,694 Current portion of long-term debt 47 17 Long-term debt $ 1,648 $ 1,677 (a) As of March 31, 2022, 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 $321 million of outstanding accounts receivable as of March 31, 2022. (c) The remaining borrowing capacity under the China Construction Facility was approximately $4 million as of March 31, 2022.

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
	Mar. 31, 2022
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) 2022 2021 2022 2021 Income tax expense $ 27 $ 22 $ 53 $ 52 Effective tax rate percentage 25.0 % 24.4 % 24.0 % 25.1 %

Employee Benefit Plans (Tables)

Employee Benefit Plans (Tables)	6 Months Ended
	Mar. 31, 2022
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) 2022 2021 2022 2021 Three months ended March 31 Service cost $ 1 $ — $ — $ — Interest cost 11 11 1 — Expected return on plan assets (20) (21) — — Amortization of prior service credits — — (1) (4) Net periodic benefit income $ (8) $ (10) $ — $ (4) Six months ended March 31 Service cost $ 1 $ 1 $ — $ — Interest cost 22 22 1 — Expected return on plan assets (40) (43) — — Amortization of prior service credit — — (1) (6) Net periodic benefit income $ (17) $ (20) $ — $ (6)

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Mar. 31, 2022
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 Six months ended March 31 March 31 (In millions, except per share amounts) 2022 2021 2022 2021 Numerator Net income $ 81 $ 68 $ 168 $ 155 Denominator Weighted average common shares outstanding 180 182 180 184 Effect of potentially dilutive securities 1 1 1 — Weighted average diluted shares outstanding 181 183 181 184 Earnings per share Basic $ 0.45 $ 0.37 $ 0.93 $ 0.84 Diluted $ 0.45 $ 0.37 $ 0.93 $ 0.84

Reportable Segment Information

Reportable Segment Information (Tables)	6 Months Ended
	Mar. 31, 2022
Segment Reporting [Abstract]
Schedule of Segment Reporting Information	The following presents sales and adjusted EBITDA for each reportable segment: Three months ended Six months ended March 31 March 31 (in millions) 2022 2021 2022 2021 Sales Retail Services $ 350 $ 285 $ 696 $ 539 Global Products 536 416 1,048 815 Consolidated sales $ 886 $ 701 $ 1,744 $ 1,354 Adjusted EBITDA Retail Services $ 95 $ 95 $ 193 $ 165 Global Products 81 80 158 174 Total operating segments 176 175 351 339 Corporate (18) (18) (37) (33) Consolidated Adjusted EBITDA 158 157 314 306 Reconciliation to income before income taxes: Net interest and other financing expenses (18) (55) (35) (75) Depreciation and amortization (25) (23) (50) (44) Key items: (a) Net pension and other postretirement plan income 9 14 18 27 Legacy and separation-related expenses (6) — (9) (1) LIFO charge (3) (5) (9) (9) Business interruption losses (recoveries) (5) 2 (5) 3 Information technology transition costs (2) — (3) — Income before income taxes $ 108 $ 90 $ 221 $ 207 (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 Six months ended March 31 March 31 (In millions) 2022 2021 2022 2021 Retail Services Company operations $ 246 $ 204 $ 489 $ 382 Non-company operations 104 81 207 157 Total Retail Services 350 285 696 539 Global Products Do-It-Yourself 190 147 365 287 Installer and other 346 269 683 528 Total Global Products 536 416 1,048 815 Consolidated sales $ 886 $ 701 $ 1,744 $ 1,354
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) 2022 2021 2022 2021 2022 2021 Three months ended March 31 North America (a) $ 350 $ 285 $ 330 $ 242 $ 680 $ 527 Europe, Middle East and Africa ("EMEA") — — 67 54 67 54 Asia Pacific — — 98 88 98 88 Latin America (a) — — 41 32 41 32 Totals $ 350 $ 285 $ 536 $ 416 $ 886 $ 701 Six months ended March 31 North America (a) $ 696 $ 539 $ 634 $ 477 $ 1,330 $ 1,016 EMEA — — 134 105 134 105 Asia Pacific — — 202 171 202 171 Latin America (a) — — 78 62 78 62 Totals $ 696 $ 539 $ 1,048 $ 815 $ 1,744 $ 1,354 (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, 2022
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) March 31 September 30 March 31 Cash and cash equivalents $ 118 $ 230 $ 247 Restricted cash (a) 2 1 1 Total cash, cash equivalents and restricted cash $ 120 $ 231 $ 248
Summary of Accounts Receivable	The following summarizes Valvoline’s accounts and other receivables in the Condensed Consolidated Balance Sheets as of: (In millions) March 31 September 30 Trade $ 551 $ 475 Other 16 16 Notes receivable from franchisees (a) 5 10 Receivables, gross 572 501 Allowance for credit losses (9) (5) Receivables, net $ 563 $ 496 (a) Notes receivable from franchisees were primarily issued in fiscal 2020 to provide financial assistance in response to the COVID-19 pandem ic. There were no material balance
Summary of Inventory	The following summarizes Valvoline’s inventories in the Condensed Consolidated Balance Sheets as of: (In millions) March 31 September 30 Finished products $ 288 $ 276 Raw materials, supplies and work in process 64 49 Reserve for LIFO cost valuation (76) (67) Total inventories, net $ 276 $ 258
Disaggregation of Sales by Timing of Revenue Recognized	The following disaggregates the Company’s sales by timing of recognition: Three months ended Six months ended March 31 March 31 (In millions) 2022 2021 2022 2021 Sales at a point in time $ 872 $ 689 $ 1,716 $ 1,331 Franchised revenues transferred over time 14 12 $ 28 23 Total consolidated sales $ 886 $ 701 $ 1,744 $ 1,354

Basis of Presentation and Sig_3

Basis of Presentation and Significant Accounting Policies - Narrative (Details) $ in Millions	Oct. 12, 2021Reportable_segment	Mar. 31, 2022USD ($)Reportable_segment
Number of reportable segments | Reportable_segment	2	2
Interest Rate Swap [Member]
Derivative, Notional Amount | $		$ 275
LIBOR
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate		29.00%

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Assets and Liabilities at Fair Value (Details) - USD ($) $ in Millions	Mar. 31, 2022	Sep. 30, 2021
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument
Liabilities, Fair Value Disclosure [Abstract]
Derivative, Notional Amount	$ 150	$ 137
Fair Value, Inputs, Level 1 [Member]
Other noncurrent assets
Assets, Fair Value Disclosure	0	13
Liabilities, Fair Value Disclosure [Abstract]
Financial and Nonfinancial Liabilities, Fair Value Disclosure	0	0
Fair Value, Inputs, Level 2 [Member]
Other noncurrent assets
Assets, Fair Value Disclosure	36	96
Liabilities, Fair Value Disclosure [Abstract]
Financial and Nonfinancial Liabilities, Fair Value Disclosure	5	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	24	24
Fair Value, Measurements, Recurring
Prepaid Expense and Other Assets, Current [Abstract]
Currency derivatives	4	3
Other noncurrent assets
Non-qualified trust funds	8	11
Interest Rate Derivative Assets, at Fair Value	12	2
Assets, Fair Value Disclosure	44	116
Liabilities, Fair Value Disclosure [Abstract]
Currency derivatives	5	3
Interest rate swap agreements		1
Deferred compensation obligations	24	24
Financial and Nonfinancial Liabilities, Fair Value Disclosure	29	28
Fair Value, Measurements, Recurring | Money Market Funds [Member]
Cash and cash equivalents
Cash and Cash Equivalents, Fair Value Disclosure		13
Fair Value, Measurements, Recurring | Time deposits
Cash and cash equivalents
Cash and Cash Equivalents, Fair Value Disclosure	20	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		13
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 [Member]
Prepaid Expense and Other Assets, Current [Abstract]
Currency derivatives	4	3
Other noncurrent assets
Non-qualified trust funds	0	4
Interest Rate Derivative Assets, at Fair Value	12	2
Liabilities, Fair Value Disclosure [Abstract]
Currency derivatives	5	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	20	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	$ 24	$ 24

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Mar. 31, 2021	Mar. 31, 2022
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	Mar. 31, 2022	Sep. 30, 2021
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Unamortized discounts and issuance costs	$ 13	$ 14
Fair Value, Inputs, Level 2 [Member] | Fair value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	1,013	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	549	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	464	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 - Narrative (Detai

Acquisitions - Narrative (Details) $ in Millions	6 Months Ended
	Mar. 31, 2022USD ($)service_center_store	Mar. 31, 2021USD ($)service_center_store
Business Combinations [Abstract]
Number of service center stores acquired	21	100
Consideration for acquisition | $	$ 23	$ 223
Number of System-wide Service Center Stores	1,650
Business Acquisition, Number of Former Franchise Service Centers Converted		28
Number of franchise-operated service center stores acquired		12

Acquisitions - Schedule of Aggr

Acquisitions - Schedule of Aggregate Cash Consideration and Total Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions	6 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Business Acquisition [Line Items]
Inventories	$ 0	$ 2
Other current assets	0	1
Property, plant and equipment	3	82
Operating lease assets	7	26
Goodwill (a)	20	180
Other current liabilities	0	(7)
Operating lease liabilities	(7)	(24)
Other noncurrent liabilities	0	(74)
Net assets acquired	23	$ 223
Weighted average amortization period		11 years
Reacquired franchise rights (c)
Business Acquisition [Line Items]
Intangible assets (b)	$ 0	$ 34
Weighted average amortization period	11 years
Gain (Loss) on Contract Termination	$ 0
Other
Business Acquisition [Line Items]
Intangible assets (b)	$ 0	$ 3

Goodwill and Other Intangible_2

Goodwill and Other Intangibles - Summary of Goodwill by Segment (Details) $ in Millions	6 Months Ended
	Mar. 31, 2022USD ($)service_center_store	Mar. 31, 2021service_center_store
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 644
Acquisitions	20
Currency translation	1
Goodwill, ending balance	$ 665
Number of service center stores acquired | service_center_store	21	100
Retail Services
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 513
Acquisitions	20
Currency translation	1
Goodwill, ending balance	534
Global Products
Goodwill [Roll Forward]
Goodwill, beginning balance	131
Acquisitions	0
Currency translation	0
Goodwill, ending balance	$ 131

Debt - Schedule of Short-Term B

Debt - Schedule of Short-Term Borrowings and Long Term Debt (Details)	Mar. 31, 2022USD ($)revolvingCreditFacility	Sep. 30, 2021USD ($)
Debt Instrument [Line Items]
Debt issuance costs and discounts	$ (13,000,000)	$ (14,000,000)
Total debt	1,695,000,000	1,694,000,000
Current portion of long-term debt	47,000,000	17,000,000
Long-term debt	1,648,000,000	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	321,000,000
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
Number of revolving credit facility | revolvingCreditFacility	2
Working Capital Loan [Member] | CHINA
Debt Instrument [Line Items]
Other Long -term debt	$ 0	$ 0
Total borrowing capacity remaining	$ 36,000,000

Income Taxes - Schedule of Inco

Income Taxes - Schedule of Income Tax Expense and Effective Tax Rate (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Income tax expense	$ 27	$ 22	$ 53	$ 52
Effective tax rate percentage	25.00%	24.40%	24.00%	25.10%

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, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Pension benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 1	$ 0	$ 1	$ 1
Interest cost	11	11	22	22
Expected return on plan assets	(20)	(21)	(40)	(43)
Amortization of prior service credits	0	0	0	0
Net periodic benefit income	(8)	(10)	(17)	(20)
Other postretirement benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	0	0	0	0
Interest cost	1	0	1	0
Expected return on plan assets	0	0	0	0
Amortization of prior service credits	(1)	(4)	(1)	(6)
Net periodic benefit income	$ 0	$ (4)	$ 0	$ (6)

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, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2022	Mar. 31, 2021
Numerator
Net income	$ 81	$ 87	$ 68	$ 87	$ 168	$ 155
Denominator
Weighted-average common shares outstanding (shares)	180		182		180	184
Effect of potentially dilutive securities (shares)	1		1		1	0
Weighted average diluted shares outstanding (shares)	181		183		181	184
Earnings per share
Basic (usd per share)	$ 0.45		$ 0.37		$ 0.93	$ 0.84
Diluted (usd per share)	$ 0.45		$ 0.37		$ 0.93	$ 0.84

Reportable Segment Informatio_2

Reportable Segment Information - Sales and Operating Income by Reportable Segment (Details) $ in Millions	Oct. 12, 2021Reportable_segment	Mar. 31, 2022USD ($)numberOfCountries	Mar. 31, 2021USD ($)	Mar. 31, 2022USD ($)Reportable_segmentnumberOfCountries	Mar. 31, 2021USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | Reportable_segment	2			2
Number of countries where our products are sold | numberOfCountries		140		140
Sales		$ 886	$ 701	$ 1,744	$ 1,354
Adjusted Earnings Before Interest Taxes Depreciation and Amortization		158	157	314	306
Net interest and other financing expenses		(18)	(55)	(35)	(75)
Net pension and other postretirement plan income		9	14	18	27
Legacy and separation-related expenses		(6)	0	(9)	(1)
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest		108	90	221	207
Retail Services
Segment Reporting Information [Line Items]
Sales		350	285	696	539
Global Products
Segment Reporting Information [Line Items]
Sales		536	416	1,048	815
Operating Segments
Segment Reporting Information [Line Items]
Sales		886	701	1,744	1,354
Adjusted Earnings Before Interest Taxes Depreciation and Amortization		176	175	351	339
Net interest and other financing expenses		(18)	(55)	(35)	(75)
Depreciation and amortization		(25)	(23)	(50)	(44)
Net pension and other postretirement plan income		9	14	18	27
Legacy and separation-related expenses		(6)	0	(9)	(1)
LIFO charge		(3)	(5)	(9)	(9)
Information Technology and Data Processing		(2)		(3)	0
Business interruption losses (recoveries)		(5)	2	(5)	3
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest		108	90
Income before income taxes				221	207
Operating Segments | Retail Services
Segment Reporting Information [Line Items]
Sales		350	285	696	539
Adjusted Earnings Before Interest Taxes Depreciation and Amortization		95	95	193	165
Operating Segments | Global Products
Segment Reporting Information [Line Items]
Sales		536	416	1,048	815
Adjusted Earnings Before Interest Taxes Depreciation and Amortization		81	80	158	174
Corporate, Non-Segment
Segment Reporting Information [Line Items]
Adjusted Earnings Before Interest Taxes Depreciation and Amortization		$ (18)	$ (18)	$ (37)	$ (33)

Reportable Segment Informatio_3

Reportable Segment Information - Disaggregation of Revenues by Reportable Segments (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Segment Reporting Information [Line Items]
Sales	$ 886	$ 701	$ 1,744	$ 1,354
Operating Segments
Segment Reporting Information [Line Items]
Sales	886	701	1,744	1,354
Retail Services
Segment Reporting Information [Line Items]
Sales	350	285	696	539
Retail Services | Operating Segments
Segment Reporting Information [Line Items]
Sales	350	285	696	539
Global Products
Segment Reporting Information [Line Items]
Sales	536	416	1,048	815
Global Products | Operating Segments
Segment Reporting Information [Line Items]
Sales	536	416	1,048	815
Company operations | Retail Services
Segment Reporting Information [Line Items]
Sales	246	204	489	382
Non-company operations | Retail Services
Segment Reporting Information [Line Items]
Sales	104	81	207	157
Do-It-Yourself | Global Products
Segment Reporting Information [Line Items]
Sales	190	147	365	287
Installer and other | Global Products
Segment Reporting Information [Line Items]
Sales	$ 346	$ 269	$ 683	$ 528

Reportable Segment Informatio_4

Reportable Segment Information - Disaggregation of Revenues by Geographical Market (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Segment Reporting Information [Line Items]
Sales	$ 886	$ 701	$ 1,744	$ 1,354
Operating Segments
Segment Reporting Information [Line Items]
Sales	886	701	1,744	1,354
Retail Services
Segment Reporting Information [Line Items]
Sales	350	285	696	539
Retail Services | Operating Segments
Segment Reporting Information [Line Items]
Sales	350	285	696	539
Global Products
Segment Reporting Information [Line Items]
Sales	536	416	1,048	815
Global Products | Operating Segments
Segment Reporting Information [Line Items]
Sales	536	416	1,048	815
North America
Segment Reporting Information [Line Items]
Sales	680	527	1,330	1,016
North America | Retail Services
Segment Reporting Information [Line Items]
Sales	350	285	696	539
North America | Global Products
Segment Reporting Information [Line Items]
Sales	330	242	634	477
EMEA
Segment Reporting Information [Line Items]
Sales	67	54	134	105
EMEA | Retail Services
Segment Reporting Information [Line Items]
Sales	0	0	0	0
EMEA | Global Products
Segment Reporting Information [Line Items]
Sales	67	54	134	105
Asia Pacific
Segment Reporting Information [Line Items]
Sales	98	88	202	171
Asia Pacific | Retail Services
Segment Reporting Information [Line Items]
Sales	0	0	0	0
Asia Pacific | Global Products
Segment Reporting Information [Line Items]
Sales	98	88	202	171
Latin America
Segment Reporting Information [Line Items]
Sales	41	32	78	62
Latin America | Retail Services
Segment Reporting Information [Line Items]
Sales	0	0	0	0
Latin America | Global Products
Segment Reporting Information [Line Items]
Sales	$ 41	$ 32	$ 78	$ 62

Supplemental Financial Inform_3

Supplemental Financial Information - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions	Mar. 31, 2022	Sep. 30, 2021	Mar. 31, 2021	Sep. 30, 2020
Supplemental Financial Information [Abstract]
Cash and cash equivalents	$ 118	$ 230	$ 247
Restricted cash	2	1	1
Total cash, cash equivalents and restricted cash	$ 120	$ 231	$ 248	$ 761

Supplemental Financial Inform_4

Supplemental Financial Information - Summary of Accounts Receivable (Details) - USD ($) $ in Millions	Mar. 31, 2022	Sep. 30, 2021
Current
Trade	$ 551	$ 475
Other	16	16
Notes receivable from franchisees	5	10
Receivables, gross	572	501
Allowance for credit losses	(9)	(5)
Receivables, net	$ 563	$ 496

Supplemental Financial Inform_5

Supplemental Financial Information - Inventory (Details) - USD ($) $ in Millions	Mar. 31, 2022	Sep. 30, 2021
Supplemental Financial Information [Abstract]
Finished products	$ 288	$ 276
Raw materials, supplies and work in process	64	49
Reserve for LIFO cost valuation	(76)	(67)
Inventories, net	$ 276	$ 258

Supplemental Financial Inform_6

Supplemental Financial Information - Revenue Recognition and Deferred Revenue (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Timing of Transfer
Sales	$ 886	$ 701	$ 1,744	$ 1,354
Sales at a point in time
Timing of Transfer
Sales	872	689	1,716	1,331
Franchised revenues transferred over time
Timing of Transfer
Sales	$ 14	$ 12	$ 28	$ 23

Subsequent Events (Details)

Subsequent Events (Details)	Apr. 21, 2022$ / shares
Subsequent Event
Subsequent Event [Line Items]
Dividend per share (usd per share)	$ 0.125