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 |