Valvoline (VVV) 10-Q 7 Feb 23 2023 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Dec. 31, 2022	Jan. 31, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Dec. 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		171,935,576
Entity Central Index Key	0001674910
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Income - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Net Income (Loss) Attributable to Parent [Abstract]
Net revenues	$ 332.8	$ 287.3
Cost of sales	214	175.1
Gross profit	118.8	112.2
Selling, general and administrative expenses	66	60.2
Net legacy and separation-related expenses	25.4	2.8
Other income, net	(1.9)	(2.8)
Operating income	29.3	52
Net pension and other postretirement plan expense (income)	3.7	(9.3)
Net interest and other financing expenses	18.7	17
Income before income taxes	6.9	44.3
Income tax (benefit) expense	(20.1)	10.1
Income from continuing operations	27	34.2
Income from discontinued operations	54.9	52.8
Net income	$ 81.9	$ 87
NET EARNINGS PER SHARE
Continuing operations, basic earnings per share (usd per share)	$ 0.16	$ 0.19
Discontinued operations, basic earnings per share (usd per share)	0.31	0.29
Basic earnings per share (usd per share)	0.47	0.48
Continuing operations, diluted earnings per share (usd per share)	0.15	0.19
Discontinued operations, diluted earnings per share (usd per share)	0.31	0.29
Diluted earnings per share (usd per share)	$ 0.46	$ 0.48
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Weighted average common shares outstanding, basic (in shares)	175.2	180.5
Weighted average common shares outstanding, diluted (in shares)	176.3	182
COMPREHENSIVE INCOME
Net income	$ 81.9	$ 87
Other comprehensive income (loss), net of tax
Currency translation adjustments	15.2	0.3
Amortization of pension and other postretirement plan prior service credits	(0.4)	(0.4)
Unrealized (loss) gain on cash flow hedges	(1.3)	2.2
Other comprehensive income	13.5	2.1
Comprehensive income	$ 95.4	$ 89.1

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2022	Sep. 30, 2022
Assets, Current [Abstract]
Cash and cash equivalents	$ 21	$ 23.4
Receivables, net	56.9	66.1
Inventories, net	31.2	29.4
Prepaid expenses and other current assets	38.7	38
Current assets held for sale	1,553.6	1,464.2
Total current assets	1,701.4	1,621.1
Noncurrent assets
Property, plant and equipment, net	693.3	668.6
Operating lease assets	253.5	248.1
Goodwill and intangibles, net	668.2	663.1
Deferred tax assets	82.2	61.6
Other noncurrent assets	152.9	154.3
Total noncurrent assets	1,850.1	1,795.7
Total assets	3,551.5	3,416.8
Current liabilities
Current portion of long-term debt	224.5	162.5
Trade and other payables	46.6	45
Accrued expenses and other liabilities	175.2	172.6
Current liabilities held for sale	478.1	539.3
Total current liabilities	924.4	919.4
Noncurrent liabilities
Long-term debt	1,656.1	1,525.1
Employee benefit obligations	200.5	199.4
Operating lease liabilities	234.5	229.2
Other noncurrent liabilities	246.7	237.1
Total noncurrent liabilities	2,337.8	2,190.8
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; 174 and 176 shares issued and outstanding at December 31, 2022 and September 30, 2021, respectively	1.7	1.8
Paid-in capital	40.8	44.1
Retained earnings	254.6	282
Accumulated other comprehensive loss	(7.8)	(21.3)
Total stockholders’ equity	289.3	306.6
Total liabilities and stockholders’ equity	$ 3,551.5	$ 3,416.8

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2022	Sep. 30, 2022
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)	173,500,000	176,100,000
Common stock outstanding (shares)	173,500,000	176,100,000

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Deficit - USD ($) shares in Millions, $ in Millions	Total	Common stock	Paid-in capital	Retained earnings	Accumulated other comprehensive Income (loss)
Common stock outstanding, at beginning of period (shares) at Sep. 30, 2021		180.3
Balance at beginning of period at Sep. 30, 2021	$ 134.5	$ 1.8	$ 35.2	$ 90	$ 7.5
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	87			87
Dividends paid	(22.5)		(0.1)	(22.6)
Stock-based compensation, net of issuances (in shares)		0.2
Stock-based compensation, net of issuances	2.4		2.4
Stock repurchased and retired during period, shares (in shares)		0.9
Repurchases of common stock	(31.4)			(31.4)
Other comprehensive income, net of tax	2.1				2.1
Common stock outstanding, at end of period (shares) at Dec. 31, 2021		179.6
Balance at end of period at Dec. 31, 2021	$ 167.3	$ 1.8	32.9	123	9.6
Common stock outstanding, at beginning of period (shares) at Sep. 30, 2022	176.1	176.1
Balance at beginning of period at Sep. 30, 2022	$ 306.6	$ 1.8	44.1	282	(21.3)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	81.9			81.9
Dividends paid	(21.8)		(0.1)	(21.9)
Stock-based compensation, net of issuances (in shares)		0.3
Stock-based compensation, net of issuances	(3.4)		(3.4)
Stock repurchased and retired during period, shares (in shares)		2.9
Repurchases of common stock	(87.5)	$ 0.1		(87.4)
Other comprehensive income, net of tax	$ 13.5				13.5
Common stock outstanding, at end of period (shares) at Dec. 31, 2022	173.5	173.5
Balance at end of period at Dec. 31, 2022	$ 289.3	$ 1.7	$ 40.8	$ 254.6	$ (7.8)

Condensed Consolidated Statem_3

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

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Cash flows from operating activities
Net income	$ 81.9	$ 87
Adjustments to reconcile to cash flows from operations
Income from discontinued operations	(54.9)	(52.8)
Depreciation and amortization	18.5	16.9
Deferred income taxes	(26.5)	7.5
Stock-based compensation expense	2.9	3.2
Other, net	0.6	0.6
Change in assets and liabilities
Receivables	13.4	(4.7)
Inventories	(1)	3.1
Payables and accrued liabilities	(17.2)	(22.3)
Other assets and liabilities	30.8	(0.8)
Operating cash flows from continuing operations	48.5	37.7
Operating cash flows from discontinued operations	(57.2)	(5.9)
Total cash (used in) provided by operating activities	(8.7)	31.8
Cash flows from investing activities
Additions to property, plant and equipment	(39.9)	(32)
Notes receivable, net of repayments	(0.5)	3
Acquisitions of businesses, net of cash acquired	(9.6)	(13.6)
Other investing activities, net	1.6	(0.1)
Investing cash flows from continuing operations	(48.4)	(42.7)
Investing cash flows from discontinued operations	(8.4)	(3.1)
Total cash used in investing activities	(56.8)	(45.8)
Cash flows from financing activities
Proceeds from borrowings, net of issuance costs	250	0
Repayments on borrowings	(119.4)	0
Repurchases of common stock	(87.4)	(31.5)
Cash dividends paid	(21.8)	(22.5)
Other financing activities	(8.9)	(8.9)
Financing cash flows from continuing operations	12.5	(62.9)
Financing cash flows from discontinued operations	60	(0.9)
Total cash provided by (used in) financing activities	72.5	(63.8)
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash	2.1	0.1
Increase (decrease) in cash, cash equivalents, and restricted cash	9.1	(77.7)
Cash, cash equivalents, and restricted cash - beginning of period	83.9	231.4
Cash, cash equivalents, and restricted cash - end of period	$ 93	$ 153.7

Basis of Presentation and Signi

Basis of Presentation and Significant Accounting Policies	3 Months Ended
	Dec. 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, 2022. Certain prior period amounts disclosed herein have been reclassified to conform to the current presentation. Use of estimates, risks and uncertainties The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosures of contingent matters. Although management bases its estimates on historical experience and various other assumptions that are believed to be reasonable under the circumstances, actual results could differ significantly from the estimates under different assumptions or conditions. Valvoline has substantially maintained its operations throughout the novel coronavirus ("COVID-19") pandemic to-date and has continued precautionary measures to protect the Company's employees and customers and manage through the currently known impacts on its business. Given the unprecedented nature of the pandemic, the extent of future impacts cannot be reasonably estimated at this time due to numerous uncertainties, including the ultimate duration and severity of the pandemic. Strategic separation In fiscal 2022, Valvoline entered into a definitive agreement to sell its former Global Products reportable segment (“Global Products”) to Aramco Overseas Company B.V. (“Aramco”). In all periods presented within these condensed consolidated financial statements, the assets and liabilities associated with the Global Products disposal group have been classified as held for sale within the Condensed Consolidated Balance Sheets and its operations have been classified as discontinued operations within the Condensed Consolidated Statements of Comprehensive Income and Cash Flows. Refer to Note 2 for additional information regarding the Global Products business, including the assets and liabilities held for sale and income from discontinued operations. Unless otherwise noted, disclosures within the remaining notes to these condensed consolidated financial statements relate solely to the Company's continuing operations. Inflation Reduction Act of 2022 The Inflation Reduction Act (the “IRA”) was enacted in the United States in August 2022, which includes, among other provisions, a 15% alternative minimum tax on corporate adjusted income in excess of certain thresholds for taxable years beginning after December 31, 2022 . The Company is evaluating the impact this provision will have on its condensed consolidated financial statements. The IRA also imposes an excise tax of one percent share repurchases that occur after December 31, 2022. Corporations are permitted to credit certain new stock issuances against their stock repurchases during the same taxable period. Based on current share repurchase expectations, Valvoline anticipates this excise tax will have a significant impact on its Retained earnings and cash flows related to the timing of payments. 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. Issued but not yet adopted In March 2020, the Financial Accounting Standards Board (“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. 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. In December 2022, FASB issued guidance to extend the temporary transition period which now can be applied on a prospective basis through the end of December 2024 for qualifying modified arrangements. As of December 31, 2022, 31% of Valvoline’s outstanding total long-term debt and interest rate swap agreements with a total notional amount of $275 million are under existing arrangements that mature following LIBOR cessation and do not contain fallback provisions to alternative reference rates. On December 12, 2022, Valvoline entered into an agreement to amend its existing Credit Agreement, which will be effective upon the sale of Global Products and includes the transition from LIBOR to Secured Overnight Financing Rate (“SOFR”) or an alternate base rate. This amendment is described further in Note 5 and will leave the $275 million of interest rate swap agreements remaining which mature following LIBOR cessation without fallback provisions to alternative rates. Valvoline expects to modify its interest rate swap agreements for the reference rates only commensurate with the closing of the sale of Global Products and apply the simplification guidance to this modification.

Discontinued Operations

Discontinued Operations	3 Months Ended
	Dec. 31, 2022
Discontinued Operations and Disposal Groups [Abstract]
Discontinued Operations	DISCONTINUED OPERATIONS On July 31, 2022, the Company entered into a definitive agreement to sell Global Products to Aramco for a cash purchase price of $2.65 billion, subject to customary adjustments with respect to working capital and net indebtedness (the “Transaction”). The Transaction is subject to standard closing conditions, including regulatory approvals and is expected to close in early calendar year 2023. The following table summarizes Income from discontinued operations within the Condensed Consolidated Statements of Comprehensive Income: Three months ended (In millions) 2022 2021 Net revenues $ 705.8 $ 619.0 Cost of sales 556.6 488.1 Gross profit 149.2 130.9 Selling, general and administrative expenses 72.3 74.1 Net legacy and separation-related expense 6.2 — Equity and other income, net (9.2) (12.2) Operating income from discontinued operations 79.9 69.0 Net pension and other postretirement plan expense 0.1 — Net interest and other financing expenses 2.3 0.7 Income from discontinued operations before income taxes 77.5 68.3 Income tax expense 22.6 15.5 Income from discontinued operations $ 54.9 $ 52.8 The products used in Valvoline’s service delivery are sourced from Global Products. Valvoline will continue this arrangement following the sale of Global Products through a long-term supply agreement whereby Valvoline will purchase substantially all lubricant and certain ancillary products for its stores from Global Products. Net revenues within the results of Global Products above include product sales to the Company's continuing operations which are considered to be effectively settled at the time of the transaction and have not been eliminated. The following table summarizes these transactions: Three months ended December 31 (In millions) 2022 2021 Net revenues $ 55.1 $ 48.4 A summary of the held for sale assets and liabilities included in the Condensed Consolidated Balance Sheets follows: (In millions) December 31 September 30 Current assets Cash and cash equivalents $ 70.5 $ 59.0 Receivables, net 576.1 524.3 Inventories, net 296.5 290.1 Prepaid expenses and other current assets 40.9 35.0 Property, plant and equipment, net 264.2 257.4 Goodwill and intangibles, net 139.8 139.8 Other noncurrent assets 165.6 158.6 Current assets held for sale $ 1,553.6 $ 1,464.2 Current liabilities Current portion of long-term debt $ 5.2 $ — Trade and other payables 216.4 264.9 Accrued expenses and other liabilities 154.0 166.9 Long-term debt 28.0 30.7 Other current liabilities 74.5 76.8 Current liabilities held for sale $ 478.1 $ 539.3

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Dec. 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 December 31, 2022 (In millions) Total Level 1 Level 2 Level 3 NAV (a) Cash and cash equivalents Money market funds $ 0.4 $ 0.4 $ — $ — $ — Time deposits 8.6 — 8.6 — — Prepaid expenses and other current assets Currency derivatives (b) 2.6 — 2.6 — — Interest rate swap agreements 4.0 — 4.0 — — Other noncurrent assets Non-qualified trust funds 5.7 — — — 5.7 Interest rate swap agreements 12.0 — 12.0 — — Total assets at fair value $ 33.3 $ 0.4 $ 27.2 $ — $ 5.7 Accrued expenses and other liabilities Currency derivatives (b) $ 2.7 $ — $ 2.7 $ — $ — Other noncurrent liabilities Deferred compensation obligations 20.5 — — — 20.5 Total liabilities at fair value $ 23.2 $ — $ 2.7 $ — $ 20.5 As of September 30, 2022 (In millions) Total Level 1 Level 2 Level 3 NAV (a) Cash and cash equivalents Money market funds $ 0.4 $ 0.4 $ — $ — $ — Time deposits 13.3 — 13.3 — — Prepaid expenses and other current assets Currency derivatives (b) 6.0 — 6.0 — — Interest rate swap agreements 5.2 — 5.2 — — Other noncurrent assets Non-qualified trust funds 6.4 — — — 6.4 Interest rate swap agreements 12.6 — 12.6 — — Total assets at fair value $ 43.9 $ 0.4 $ 37.1 $ — $ 6.4 Accrued expenses and other liabilities Currency derivatives (b) $ 5.2 $ — $ 5.2 $ — $ — Other noncurrent liabilities Deferred compensation obligations 19.6 — — — 19.6 Total liabilities at fair value $ 24.8 $ — $ 5.2 $ — $ 19.6 (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 $154.5 million and $150.5 million as of December 31, 2022 and September 30, 2022, respectively. There were no material gains or losses recognized in earnings during the three months ended December 31, 2022 or 2021 related to these assets and liabilities. Long-term debt Long-term debt is reported in the Condensed Consolidated Balance Sheets at carrying value, rather than fair value, and is therefore excluded from the disclosure above of financial assets and liabilities measured at fair value within the condensed consolidated financial statements on a recurring basis. The fair values of the Company's outstanding fixed rate senior notes shown below are based on recent trading values, which are considered Level 2 inputs within the fair value hierarchy. December 31, 2022 September 30, 2022 (In millions) Fair value Carrying value (a) Unamortized Fair value Carrying value (a) Unamortized 2030 Notes $ 586.1 $ 593.9 $ (6.1) $ 568.5 $ 593.7 $ (6.3) 2031 Notes 433.1 529.4 (5.6) 400.5 529.2 (5.8) Total $ 1,019.2 $ 1,123.3 $ (11.7) $ 969.0 $ 1,122.9 $ (12.1) (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.

Business Combinations

Business Combinations	3 Months Ended
	Dec. 31, 2022
Business Combinations [Abstract]
Business Combinations	BUSINESS COMBINATIONS The Company acquired 7 service center stores in single and multi-store transactions for an aggregate purchase price of $9.6 million during the three months ended December 31, 2022. These acquisitions contribute to Valvoline's retail presence in key North American markets and its increased footprint to 1,746 system-wide service center stores. During the three months ended December 31, 2021, the Company acquired 12 service center stores in single and multi-store transactions for an aggregate purchase price of $13.6 million. The Company’s acquisitions are accounted for as business combinations. A summary follows of the aggregate cash consideration paid and the total assets acquired and liabilities assumed for the three months ended December 31: (In millions) 2022 2021 Inventories $ 0.3 $ — Property, plant and equipment (a) 2.0 2.3 Operating lease assets 2.1 4.3 Goodwill (b) 6.1 11.2 Intangible assets (c) Reacquired franchise rights (d) 2.3 — Other 0.1 0.1 Other current liabilities (0.2) (0.2) Operating lease liabilities (2.0) (4.1) Other noncurrent liabilities (1.1) — Total net assets acquired $ 9.6 $ 13.6 (a) Includes $1.1 million of finance lease assets finance lease liabilities . (b) Goodwill is generally expected to be deductible for income tax purposes and is primarily attributed to the operational synergies and potential growth expected to result in economic benefits in the respective markets of the acquisitions. (c) Intangible assets acquired during the three months ended December 31, 2022 and 2021 have weighted average amortization periods of 9 and 5 years, respectively. (d) 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 10 years for the rights reacquired in fiscal 2023. The effective settlement of these arrangements resulted in no settlement gain or loss as the contractual terms were at market.

Debt

Debt	3 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
Debt	DEBT The following table summarizes Valvoline’s total debt as of: (In millions) December 31 September 30 2031 Notes $ 535.0 $ 535.0 2030 Notes 600.0 600.0 Term Loan 445.6 460.0 Revolver (a) 145.0 — Trade Receivables Facility (b) 167.0 105.0 Debt issuance costs and discounts (12.0) (12.4) Total debt 1,880.6 1,687.6 Current portion of long-term debt 224.5 162.5 Long-term debt $ 1,656.1 $ 1,525.1 (a) As of December 31, 2022, the total borrowing capacity remaining under the $475.0 million revolving credit facility was $324.6 million due to a reduction of $145.0 million for borrowings and $5.4 million for letters of credit outstanding. (b) These outstanding accounts receivable substantially relate to the Global Products business and were reported in Current assets held for sale, with a smaller portion reported within Receivables, net in the Company’s Condensed Consolidated Balance Sheets. The Trade Receivables Facility had $8.0 million of borrowing capacity remaining and the wholly-owned financing subsidiary owned $357.6 million of outstanding accounts receivable as of December 31, 2022. As of December 31, 2022, Valvoline was in compliance with all existing covenants under its long-term borrowings. Senior Credit Agreement Key terms and conditions In December 2022, Valvoline amended the Senior Credit Agreement (the “2022 Credit Agreement”), which will be effective upon the sale of the Global Products business. The 2022 Credit Agreement will provide an aggregate principal amount of $950.0 million in senior secured credit facilities comprised of (i) a five-year $475.0 million term loan facility (the “Term Loan”) and (ii) a five-year $475.0 million revolving credit facility (the “Revolver”), including a $100.0 million letter of credit sublimit. The principal amount of the Term Loan under the 2022 Credit Agreement will be required to be repaid in quarterly installments of approximately $5.9 million beginning with the first fiscal quarter after the sale of Global Products, with the remainder due at maturity and prepayment required in the amount of the net cash proceeds from certain events. Amounts outstanding under the 2022 Credit Agreement may be prepaid at any time, and from time to time, in whole or part, without premium or penalty. At Valvoline’s option, amounts outstanding under the 2022 Credit Agreement will bear interest at either SOFR or an alternative base rate, in each case plus the applicable interest rate margin. The interest rate will fluctuate between SOFR plus 1.375% per year and SOFR plus 2.250% per year (or between the alternative base rate plus 0.375% per year and the alternative base rate plus 1.250% per year), based upon Valvoline’s consolidated total net leverage ratio. Effective upon completion of the sale of the Global Products business, proceeds from the borrowings under the 2022 Credit Agreement are expected to be used to pay in full the principal amounts of the current Term Loan and Revolver borrowings under the existing Credit Agreement, in addition to accrued and unpaid interest and fees, as well as expenses related to the amendment. The remaining proceeds from the 2022 Credit Agreement, including the capacity under its Revolver, are expected to fund general corporate purposes and working capital needs. Covenants and guarantees The 2022 Credit Agreement contains covenants and provisions that will be effective upon the sale of Global Products. These terms and conditions are consistent with the existing Credit Agreement, including the maintenance of financial covenants as of the end of each fiscal quarter and guarantees from certain of Valvoline’s existing and future subsidiaries.

Income Taxes

Income Taxes	3 Months Ended
	Dec. 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 December 31 (In millions) 2022 2021 Income tax (benefit) expense $ (20.1) $ 10.1 Effective tax rate percentage (291.3) % 22.8 % The favorable changes in the income tax provision and effective tax rate in the three months ended December 31, 2022 were primarily attributed to release of valuation allowances due to the change in expectations regarding the utilization of certain legacy tax attributes as described further below. Legacy tax attributes

Employee Benefit Plans

Employee Benefit Plans	3 Months Ended
	Dec. 31, 2022
Retirement Benefits [Abstract]
Employee Benefit Plans	EMPLOYEE BENEFIT PLANS The following table summarizes the components of pension and other postretirement benefit costs (income): Pension benefits Other postretirement benefits (In millions) 2022 2021 2022 2021 Three months ended December 31 Interest cost $ 20.6 $ 10.8 $ 0.4 $ 0.2 Expected return on plan assets (16.8) (19.7) — — Amortization of prior service credits — — (0.5) (0.6) Net periodic benefit costs (income) $ 3.8 $ (8.9) $ (0.1) $ (0.4)

Litigation, Claims and Continge

Litigation, Claims and Contingencies	3 Months Ended
	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Litigation, Claims and Contingencies	LITIGATION, CLAIMS AND CONTINGENCIESFrom time to time, Valvoline is party to lawsuits, claims and other legal proceedings that arise in the ordinary course of business. The Company establishes liabilities for the outcome of such matters where losses are determined to be probable and reasonably estimable. Where appropriate, the Company has recorded liabilities with respect to these matters, which were not material for the periods presented as reflected in the condensed consolidated financial statements herein. There are certain claims and legal proceedings pending where loss is not determined to be probable or reasonably estimable, and therefore, accruals have not been made. In addition, Valvoline discloses matters when management believes a material loss is at least reasonably possible. In all instances, management has assessed each matter based on current information available and made a judgment concerning its potential outcome, giving due consideration to the amount and nature of the claim and the probability of success. The Company believes it has established adequate accruals for liabilities that are probable and reasonably estimable. Although the ultimate resolution of these matters cannot be predicted with certainty and there can be no assurances that the actual amounts required to satisfy liabilities from these matters will not exceed the amounts reflected in the condensed consolidated financial statements, based on information available at this time, it is the opinion of management that such pending claims or proceedings will not have a material adverse effect on its condensed consolidated financial statements.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Dec. 31, 2022
Earnings Per Share [Abstract]
Earnings Per Share	EARNINGS PER SHARE The following table summarizes basic and diluted earnings per share: Three months ended December 31 (In millions, except per share amounts) 2022 2021 Numerator Income from continuing operations $ 27.0 $ 34.2 Income from discontinued operations 54.9 52.8 Net income $ 81.9 $ 87.0 Denominator Weighted average common shares outstanding 175.2 180.5 Effect of potentially dilutive securities (a) 1.1 1.5 Weighted average diluted shares outstanding 176.3 182.0 Basic earnings per share Continuing operations $ 0.16 $ 0.19 Discontinued operations 0.31 0.29 Basic earnings per share $ 0.47 $ 0.48 Diluted earnings per share Continuing operations $ 0.15 $ 0.19 Discontinued operations 0.31 0.29 Diluted earnings per share $ 0.46 $ 0.48 (a) There were 0.2 million and 0.1 million outstanding stock appreciation rights not included in the computation of diluted earnings per share in the three months ended December 31, 2022 and 2021, respectively, because the effect would have been antidilutive.

Supplemental Financial Informat

Supplemental Financial Information	3 Months Ended
	Dec. 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) December 31 September 30 December 31 Cash and cash equivalents - continuing operations $ 21.0 $ 23.4 $ 42.8 Cash and cash equivalents - discontinued operations (a) 70.5 59.0 108.9 Restricted cash - discontinued operations (a) 1.5 1.5 2.0 Total cash, cash equivalents and restricted cash $ 93.0 $ 83.9 $ 153.7 (a) Included in Current assets held for sale with the Condensed Consolidated Balance Sheets. Accounts and other receivables The following summarizes Valvoline’s accounts and other receivables in the Condensed Consolidated Balance Sheets as of: (In millions) December 31 September 30 Trade $ 56.4 $ 56.2 Other 4.1 14.5 Receivables, gross 60.5 70.7 Allowance for credit losses (3.6) (4.6) Receivables, net $ 56.9 $ 66.1 Revenue recognition The following disaggregates the Company’s net revenues by timing of revenue recognized: Three months ended December 31 (In millions) 2022 2021 Net revenues transferred at a point in time $ 317.2 $ 273.7 Franchised revenues transferred over time 15.6 13.6 Net revenues $ 332.8 $ 287.3 The following table summarizes net revenues by category: Three months ended December 31 (In millions) 2022 2021 Oil changes and related fees $ 247.2 $ 211.5 Non-oil changes and related fees 69.8 58.3 Franchise fees and other (a) 15.8 17.5 Total $ 332.8 $ 287.3

Subsequent Events

Subsequent Events	3 Months Ended
	Dec. 31, 2022
Subsequent Events [Abstract]
Subsequent Events	SUBSEQUENT EVENTS Share repurchases The Company repurchased 1.6 million shares for an aggregate amount of $54.9 million from January 1, 2023 through January 31, 2023, utilizing the remaining $43.0 million in aggregate share repurchase authority under the May 17, 2021 Board authorization to repurchase up to $300.0 million of common stock (the “2021 Share Repurchase Authorization”) and leaving the Company with $1,588.1 million in aggregate share repurchase authority remaining under the November 15, 2022 Board authorization to repurchase up to $1.6 billion of common stock (the “2022 Share Repurchase Authorization”) as of February 1, 2023.

Basis of Presentation and Sig_2

Basis of Presentation and Significant Accounting Policies (Policies)	3 Months Ended
	Dec. 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, 2022. Certain prior period amounts disclosed herein have been reclassified to conform to the current presentation. Use of estimates, risks and uncertainties The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosures of contingent matters. Although management bases its estimates on historical experience and various other assumptions that are believed to be reasonable under the circumstances, actual results could differ significantly from the estimates under different assumptions or conditions. Valvoline has substantially maintained its operations throughout the novel coronavirus ("COVID-19") pandemic to-date and has continued precautionary measures to protect the Company's employees and customers and manage through the currently known impacts on its business. Given the unprecedented nature of the pandemic, the extent of future impacts cannot be reasonably estimated at this time due to numerous uncertainties, including the ultimate duration and severity of the pandemic. Strategic separation In fiscal 2022, Valvoline entered into a definitive agreement to sell its former Global Products reportable segment (“Global Products”) to Aramco Overseas Company B.V. (“Aramco”). In all periods presented within these condensed consolidated financial statements, the assets and liabilities associated with the Global Products disposal group have been classified as held for sale within the Condensed Consolidated Balance Sheets and its operations have been classified as discontinued operations within the Condensed Consolidated Statements of Comprehensive Income and Cash Flows. Refer to Note 2 for additional information regarding the Global Products business, including the assets and liabilities held for sale and income from discontinued operations. Unless otherwise noted, disclosures within the remaining notes to these condensed consolidated financial statements relate solely to the Company's continuing operations. Inflation Reduction Act of 2022 The Inflation Reduction Act (the “IRA”) was enacted in the United States in August 2022, which includes, among other provisions, a 15% alternative minimum tax on corporate adjusted income in excess of certain thresholds for taxable years beginning after December 31, 2022 . The Company is evaluating the impact this provision will have on its condensed consolidated financial statements. The IRA also imposes an excise tax of one percent share repurchases that occur after December 31, 2022. Corporations are permitted to credit certain new stock issuances against their stock repurchases during the same taxable period. Based on current share repurchase expectations, Valvoline anticipates this excise tax will have a significant impact on its Retained earnings and cash flows related to the timing of payments.
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. Issued but not yet adopted In March 2020, the Financial Accounting Standards Board (“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. 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. In December 2022, FASB issued guidance to extend the temporary transition period which now can be applied on a prospective basis through the end of December 2024 for qualifying modified arrangements. As of December 31, 2022, 31% of Valvoline’s outstanding total long-term debt and interest rate swap agreements with a total notional amount of $275 million are under existing arrangements that mature following LIBOR cessation and do not contain fallback provisions to alternative reference rates. On December 12, 2022, Valvoline entered into an agreement to amend its existing Credit Agreement, which will be effective upon the sale of Global Products and includes the transition from LIBOR to Secured Overnight Financing Rate (“SOFR”) or an alternate base rate. This amendment is described further in Note 5 and will leave the $275 million of interest rate swap agreements remaining which mature following LIBOR cessation without fallback provisions to alternative rates. Valvoline expects to modify its interest rate swap agreements for the reference rates only commensurate with the closing of the sale of Global Products and apply the simplification guidance to this modification.

Discontinued Operations (Tables

Discontinued Operations (Tables)	3 Months Ended
	Dec. 31, 2022
Discontinued Operations and Disposal Groups [Abstract]
Disposal Groups, Including Discontinued Operations	The following table summarizes Income from discontinued operations within the Condensed Consolidated Statements of Comprehensive Income: Three months ended (In millions) 2022 2021 Net revenues $ 705.8 $ 619.0 Cost of sales 556.6 488.1 Gross profit 149.2 130.9 Selling, general and administrative expenses 72.3 74.1 Net legacy and separation-related expense 6.2 — Equity and other income, net (9.2) (12.2) Operating income from discontinued operations 79.9 69.0 Net pension and other postretirement plan expense 0.1 — Net interest and other financing expenses 2.3 0.7 Income from discontinued operations before income taxes 77.5 68.3 Income tax expense 22.6 15.5 Income from discontinued operations $ 54.9 $ 52.8 The products used in Valvoline’s service delivery are sourced from Global Products. Valvoline will continue this arrangement following the sale of Global Products through a long-term supply agreement whereby Valvoline will purchase substantially all lubricant and certain ancillary products for its stores from Global Products. Net revenues within the results of Global Products above include product sales to the Company's continuing operations which are considered to be effectively settled at the time of the transaction and have not been eliminated. The following table summarizes these transactions: Three months ended December 31 (In millions) 2022 2021 Net revenues $ 55.1 $ 48.4 A summary of the held for sale assets and liabilities included in the Condensed Consolidated Balance Sheets follows: (In millions) December 31 September 30 Current assets Cash and cash equivalents $ 70.5 $ 59.0 Receivables, net 576.1 524.3 Inventories, net 296.5 290.1 Prepaid expenses and other current assets 40.9 35.0 Property, plant and equipment, net 264.2 257.4 Goodwill and intangibles, net 139.8 139.8 Other noncurrent assets 165.6 158.6 Current assets held for sale $ 1,553.6 $ 1,464.2 Current liabilities Current portion of long-term debt $ 5.2 $ — Trade and other payables 216.4 264.9 Accrued expenses and other liabilities 154.0 166.9 Long-term debt 28.0 30.7 Other current liabilities 74.5 76.8 Current liabilities held for sale $ 478.1 $ 539.3

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Dec. 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 December 31, 2022 (In millions) Total Level 1 Level 2 Level 3 NAV (a) Cash and cash equivalents Money market funds $ 0.4 $ 0.4 $ — $ — $ — Time deposits 8.6 — 8.6 — — Prepaid expenses and other current assets Currency derivatives (b) 2.6 — 2.6 — — Interest rate swap agreements 4.0 — 4.0 — — Other noncurrent assets Non-qualified trust funds 5.7 — — — 5.7 Interest rate swap agreements 12.0 — 12.0 — — Total assets at fair value $ 33.3 $ 0.4 $ 27.2 $ — $ 5.7 Accrued expenses and other liabilities Currency derivatives (b) $ 2.7 $ — $ 2.7 $ — $ — Other noncurrent liabilities Deferred compensation obligations 20.5 — — — 20.5 Total liabilities at fair value $ 23.2 $ — $ 2.7 $ — $ 20.5 As of September 30, 2022 (In millions) Total Level 1 Level 2 Level 3 NAV (a) Cash and cash equivalents Money market funds $ 0.4 $ 0.4 $ — $ — $ — Time deposits 13.3 — 13.3 — — Prepaid expenses and other current assets Currency derivatives (b) 6.0 — 6.0 — — Interest rate swap agreements 5.2 — 5.2 — — Other noncurrent assets Non-qualified trust funds 6.4 — — — 6.4 Interest rate swap agreements 12.6 — 12.6 — — Total assets at fair value $ 43.9 $ 0.4 $ 37.1 $ — $ 6.4 Accrued expenses and other liabilities Currency derivatives (b) $ 5.2 $ — $ 5.2 $ — $ — Other noncurrent liabilities Deferred compensation obligations 19.6 — — — 19.6 Total liabilities at fair value $ 24.8 $ — $ 5.2 $ — $ 19.6 (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 $154.5 million and $150.5 million as of December 31, 2022 and September 30, 2022, respectively.
Summary of Fair Value of Debt	December 31, 2022 September 30, 2022 (In millions) Fair value Carrying value (a) Unamortized Fair value Carrying value (a) Unamortized 2030 Notes $ 586.1 $ 593.9 $ (6.1) $ 568.5 $ 593.7 $ (6.3) 2031 Notes 433.1 529.4 (5.6) 400.5 529.2 (5.8) Total $ 1,019.2 $ 1,123.3 $ (11.7) $ 969.0 $ 1,122.9 $ (12.1)

Acquisitions and Divestitures (

Acquisitions and Divestitures (Tables)	3 Months Ended
	Dec. 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 three months ended December 31: (In millions) 2022 2021 Inventories $ 0.3 $ — Property, plant and equipment (a) 2.0 2.3 Operating lease assets 2.1 4.3 Goodwill (b) 6.1 11.2 Intangible assets (c) Reacquired franchise rights (d) 2.3 — Other 0.1 0.1 Other current liabilities (0.2) (0.2) Operating lease liabilities (2.0) (4.1) Other noncurrent liabilities (1.1) — Total net assets acquired $ 9.6 $ 13.6 (a) Includes $1.1 million of finance lease assets finance lease liabilities . (b) Goodwill is generally expected to be deductible for income tax purposes and is primarily attributed to the operational synergies and potential growth expected to result in economic benefits in the respective markets of the acquisitions. (c) Intangible assets acquired during the three months ended December 31, 2022 and 2021 have weighted average amortization periods of 9 and 5 years, respectively. (d) 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 10 years for the rights reacquired in fiscal 2023. The effective settlement of these arrangements resulted in no settlement gain or loss as the contractual terms were at market.

Debt (Tables)

Debt (Tables)	3 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
Schedule of Total Debt	The following table summarizes Valvoline’s total debt as of: (In millions) December 31 September 30 2031 Notes $ 535.0 $ 535.0 2030 Notes 600.0 600.0 Term Loan 445.6 460.0 Revolver (a) 145.0 — Trade Receivables Facility (b) 167.0 105.0 Debt issuance costs and discounts (12.0) (12.4) Total debt 1,880.6 1,687.6 Current portion of long-term debt 224.5 162.5 Long-term debt $ 1,656.1 $ 1,525.1 (a) As of December 31, 2022, the total borrowing capacity remaining under the $475.0 million revolving credit facility was $324.6 million due to a reduction of $145.0 million for borrowings and $5.4 million for letters of credit outstanding. (b) These outstanding accounts receivable substantially relate to the Global Products business and were reported in Current assets held for sale, with a smaller portion reported within Receivables, net in the Company’s Condensed Consolidated Balance Sheets. The Trade Receivables Facility had $8.0 million of borrowing capacity remaining and the wholly-owned financing subsidiary owned $357.6 million of outstanding accounts receivable as of December 31, 2022.

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
	Dec. 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 December 31 (In millions) 2022 2021 Income tax (benefit) expense $ (20.1) $ 10.1 Effective tax rate percentage (291.3) % 22.8 %

Employee Benefit Plans (Tables)

Employee Benefit Plans (Tables)	3 Months Ended
	Dec. 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 costs (income): Pension benefits Other postretirement benefits (In millions) 2022 2021 2022 2021 Three months ended December 31 Interest cost $ 20.6 $ 10.8 $ 0.4 $ 0.2 Expected return on plan assets (16.8) (19.7) — — Amortization of prior service credits — — (0.5) (0.6) Net periodic benefit costs (income) $ 3.8 $ (8.9) $ (0.1) $ (0.4)

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Dec. 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 December 31 (In millions, except per share amounts) 2022 2021 Numerator Income from continuing operations $ 27.0 $ 34.2 Income from discontinued operations 54.9 52.8 Net income $ 81.9 $ 87.0 Denominator Weighted average common shares outstanding 175.2 180.5 Effect of potentially dilutive securities (a) 1.1 1.5 Weighted average diluted shares outstanding 176.3 182.0 Basic earnings per share Continuing operations $ 0.16 $ 0.19 Discontinued operations 0.31 0.29 Basic earnings per share $ 0.47 $ 0.48 Diluted earnings per share Continuing operations $ 0.15 $ 0.19 Discontinued operations 0.31 0.29 Diluted earnings per share $ 0.46 $ 0.48 (a) There were 0.2 million and 0.1 million outstanding stock appreciation rights not included in the computation of diluted earnings per share in the three months ended December 31, 2022 and 2021, respectively, because the effect would have been antidilutive.

Supplemental Financial Inform_2

Supplemental Financial Information (Tables)	3 Months Ended
	Dec. 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) December 31 September 30 December 31 Cash and cash equivalents - continuing operations $ 21.0 $ 23.4 $ 42.8 Cash and cash equivalents - discontinued operations (a) 70.5 59.0 108.9 Restricted cash - discontinued operations (a) 1.5 1.5 2.0 Total cash, cash equivalents and restricted cash $ 93.0 $ 83.9 $ 153.7 (a) Included in Current assets held for sale with the Condensed Consolidated Balance Sheets.
Summary of Accounts Receivable	The following summarizes Valvoline’s accounts and other receivables in the Condensed Consolidated Balance Sheets as of: (In millions) December 31 September 30 Trade $ 56.4 $ 56.2 Other 4.1 14.5 Receivables, gross 60.5 70.7 Allowance for credit losses (3.6) (4.6) Receivables, net $ 56.9 $ 66.1
Disaggregation of Sales by Timing of Revenue Recognized and Revenue by Category	Revenue recognition The following disaggregates the Company’s net revenues by timing of revenue recognized: Three months ended December 31 (In millions) 2022 2021 Net revenues transferred at a point in time $ 317.2 $ 273.7 Franchised revenues transferred over time 15.6 13.6 Net revenues $ 332.8 $ 287.3 The following table summarizes net revenues by category: Three months ended December 31 (In millions) 2022 2021 Oil changes and related fees $ 247.2 $ 211.5 Non-oil changes and related fees 69.8 58.3 Franchise fees and other (a) 15.8 17.5 Total $ 332.8 $ 287.3

Basis of Presentation and Sig_3

Basis of Presentation and Significant Accounting Policies - Narrative (Details) $ in Millions	Dec. 31, 2022 USD ($)
Interest Rate Swap
Derivative, notional amount	$ 275
LIBOR
Long-term debt, percentage bearing variable interest, percentage rate	31%

Discontinued Operations - Narra

Discontinued Operations - Narrative (Details) $ in Millions	Jul. 31, 2022 USD ($)
Discontinued Operations, Held-for-sale | Global Products
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale of operations	$ 2,650

Discontinued Operations - Conso

Discontinued Operations - Consolidated Statements of Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net interest and other financing expenses	$ 18.7	$ 17
Income tax (benefit) expense	(20.1)	10.1
Income from discontinued operations	54.9	52.8
Discontinued Operations, Held-for-sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net revenues	705.8	619
Cost of sales	556.6	488.1
Gross profit	149.2	130.9
Selling, general and administrative expenses	72.3	74.1
Net legacy and separation-related expense	6.2	0
Equity and other income, net	(9.2)	(12.2)
Operating income from discontinued operations	79.9	69
Net pension and other postretirement plan expense	0.1	0
Net interest and other financing expenses	2.3	0.7
Income from discontinued operations before income taxes	77.5	68.3
Income tax (benefit) expense	22.6	15.5
Income from discontinued operations	$ 54.9	$ 52.8

Discontinued Operations - Sales

Discontinued Operations - Sales from Global Products (Details) - Discontinued Operations, Held-for-sale - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net revenues	$ 705.8	$ 619
Global Products
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net revenues	$ 55.1	$ 48.4

Discontinued Operations - Held

Discontinued Operations - Held for Sale Assets and Liabilities Consolidated Balance Sheets (Details) - USD ($) $ in Millions	Dec. 31, 2022	Sep. 30, 2022	Dec. 31, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Current liabilities held for sale	$ 478.1	$ 539.3
Discontinued Operations, Held-for-sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash and cash equivalents	70.5	59	$ 108.9
Receivables, net	576.1	524.3
Inventories, net	296.5	290.1
Prepaid expenses and other current assets	40.9	35
Property, plant and equipment, net	264.2	257.4
Goodwill and intangibles, net	139.8	139.8
Other noncurrent assets	165.6	158.6
Current assets held for sale	1,553.6	1,464.2
Current portion of long-term debt	5.2	0
Trade and other payables	216.4	264.9
Accrued expenses and other liabilities	154	166.9
Long-term debt	28	30.7
Other current liabilities	74.5	76.8
Current liabilities held for sale	$ 478.1	$ 539.3

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Assets and Liabilities at Fair Value (Details) - USD ($) $ in Millions	Dec. 31, 2022	Sep. 30, 2022
Foreign Exchange Contract | Not Designated as Hedging Instrument
Liabilities, Fair Value Disclosure [Abstract]
Derivative, notional amount	$ 154.5	$ 150.5
Level 1
Other noncurrent assets
Total assets at fair value	0.4	0.4
Liabilities, Fair Value Disclosure [Abstract]
Total liabilities at fair value	0	0
Level 2
Other noncurrent assets
Total assets at fair value	27.2	37.1
Liabilities, Fair Value Disclosure [Abstract]
Total liabilities at fair value	2.7	5.2
NAV (a)
Other noncurrent assets
Non-qualified trust funds	5.7	6.4
Liabilities, Fair Value Disclosure [Abstract]
Deferred compensation obligations	20.5	19.6
Fair Value, Measurements, Recurring
Prepaid Expense and Other Assets, Current [Abstract]
Currency derivatives	2.6	6
Other noncurrent assets
Non-qualified trust funds	5.7	6.4
Interest rate swap agreements	12	12.6
Total assets at fair value	33.3	43.9
Liabilities, Fair Value Disclosure [Abstract]
Currency derivatives	2.7	5.2
Deferred compensation obligations	20.5	19.6
Total liabilities at fair value	23.2	24.8
Fair Value, Measurements, Recurring | Money market funds
Cash and cash equivalents
Cash and cash equivalents	0.4	0.4
Fair Value, Measurements, Recurring | Time deposits
Cash and cash equivalents
Cash and cash equivalents	8.6	13.3
Fair Value, Measurements, Recurring | Prepaid expenses and other current assets
Other noncurrent assets
Interest rate swap agreements	4	5.2
Fair Value, Measurements, Recurring | Level 1 | Money market funds
Cash and cash equivalents
Cash and cash equivalents	0.4	0.4
Fair Value, Measurements, Recurring | Level 2
Prepaid Expense and Other Assets, Current [Abstract]
Currency derivatives	2.6	6
Other noncurrent assets
Non-qualified trust funds	0	0
Interest rate swap agreements	12	12.6
Liabilities, Fair Value Disclosure [Abstract]
Currency derivatives	2.7	5.2
Fair Value, Measurements, Recurring | Level 2 | Time deposits
Cash and cash equivalents
Cash and cash equivalents	8.6	13.3
Fair Value, Measurements, Recurring | Level 2 | Prepaid expenses and other current assets
Other noncurrent assets
Interest rate swap agreements	4	5.2
Fair Value, Measurements, Recurring | NAV (a)
Other noncurrent assets
Non-qualified trust funds	5.7	6.4
Liabilities, Fair Value Disclosure [Abstract]
Deferred compensation obligations	$ 20.5	$ 19.6

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Fair Value Disclosures [Abstract]
Fair value, assets and liabilities measured on recurring basis, gain (loss) included in earnings	$ 0	$ 0

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value of Debt (Details) - USD ($) $ in Millions	Dec. 31, 2022	Sep. 30, 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Unamortized discounts and issuance costs	$ 12	$ 12.4
Level 2 | Fair value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	1,019.2	969
Level 2 | Fair value | Senior Notes | 2030 Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	586.1	568.5
Level 2 | Fair value | Senior Notes | 2031 Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	433.1	400.5
Level 2 | Carrying value (a)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	1,123.3	1,122.9
Unamortized discounts and issuance costs	(11.7)	(12.1)
Level 2 | Carrying value (a) | Senior Notes | 2030 Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	593.9	593.7
Unamortized discounts and issuance costs	(6.1)	(6.3)
Level 2 | Carrying value (a) | Senior Notes | 2031 Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	529.4	529.2
Unamortized discounts and issuance costs	$ (5.6)	$ (5.8)

Business Combinations - Narrati

Business Combinations - Narrative (Details) $ in Millions	3 Months Ended
	Dec. 31, 2022 USD ($) service_center_store	Dec. 31, 2021 USD ($) service_center_store
Business Combinations [Abstract]
Number of service center stores acquired	7	12
Total consideration transferred | $	$ 9.6	$ 13.6
Number of system-wide service center stores	1,746

Business Combinations - Schedul

Business Combinations - Schedule of Aggregate Cash Consideration and Total Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Business Acquisition [Line Items]
Inventories	$ 0.3	$ 0
Property, plant and equipment (a)	2	2.3
Operating lease assets	2.1	4.3
Goodwill (b)	6.1	11.2
Intangible assets (c)
Other current liabilities	(0.2)	(0.2)
Operating lease liabilities	(2)	(4.1)
Other noncurrent liabilities	(1.1)	0
Total net assets acquired	9.6	$ 13.6
Finance lease assets	$ 1.1
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Other noncurrent liabilities	Other noncurrent liabilities
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Property, plant and equipment, net	Property, plant and equipment, net
Finance lease liability	$ 1.1
Weighted average amortization period	9 years	5 years
Reacquired franchise rights (d)
Business Acquisition [Line Items]
Intangible assets (c)	$ 2.3	$ 0
Weighted average amortization period	10 years
Gain (Loss) on Contract Termination	$ 0
Other
Business Acquisition [Line Items]
Intangible assets (c)	$ 0.1	$ 0.1

Debt - Schedule of Short-Term B

Debt - Schedule of Short-Term Borrowings and Long Term Debt (Details) - USD ($)	Dec. 31, 2022	Sep. 30, 2022
Debt Instrument [Line Items]
Debt issuance costs and discounts	$ (12,000,000)	$ (12,400,000)
Total debt	1,880,600,000	1,687,600,000
Current portion of long-term debt	224,500,000	162,500,000
Long-term debt	1,656,100,000	1,525,100,000
Line of Credit | Revolver (a)
Debt Instrument [Line Items]
Long-term debt	145,000,000	0
2031 Notes | Senior Notes
Debt Instrument [Line Items]
Aggregate principal amount	535,000,000	535,000,000
2030 Notes | 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	445,600,000	460,000,000
Term Loan | Line of Credit | Revolver (a)
Debt Instrument [Line Items]
Debt gross	475,000,000
Total borrowing capacity remaining	324,600,000
Letters of credit outstanding	5,400,000
Trade Receivables Facility (b) | Line of Credit | Secured Debt
Debt Instrument [Line Items]
Long-term debt	167,000,000	$ 105,000,000
Total borrowing capacity remaining	8,000,000
Trade Receivables Facility (b) | Line of Credit | Secured Debt | Financing Subsidiary
Debt Instrument [Line Items]
Accounts receivable pledged as collateral	$ 357,600,000

Debt - Narrative (Details)

Debt - Narrative (Details)	1 Months Ended
	Dec. 31, 2022 USD ($)
2022 Credit Facilities
Debt Instrument [Line Items]
Original principal amount of debt	$ 950,000,000
2022 Credit Facilities | Minimum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Spread on variable rates	1.375%
2022 Credit Facilities | Minimum | Base Rate
Debt Instrument [Line Items]
Spread on variable rates	0.375%
2022 Credit Facilities | Maximum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Spread on variable rates	2.25%
2022 Credit Facilities | Maximum | Base Rate
Debt Instrument [Line Items]
Spread on variable rates	1.25%
2022 Term Loans | Secured Debt | Line of Credit
Debt Instrument [Line Items]
Original principal amount of debt	$ 475,000,000
Term of debt	5 years
Payments for loans	$ 5,900,000
2022 Term Loans | Revolver (a) | Line of Credit
Debt Instrument [Line Items]
Original principal amount of debt	$ 475,000,000
2022 Revolver | Revolver (a) | Line of Credit
Debt Instrument [Line Items]
Term of debt	5 years
Line of credit facility, maximum borrowing capacity, sublimit	$ 100,000,000

Income Taxes - Schedule of Inco

Income Taxes - Schedule of Income Tax Expense and Effective Tax Rate (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Income tax (benefit) expense	$ (20.1)	$ 10.1
Effective tax rate percentage	(291.30%)	22.80%

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) $ in Millions	3 Months Ended
	Dec. 31, 2022 USD ($)
Income Tax Disclosure [Abstract]
Income tax benefit	$ 26.5
Deferred income taxes and tax credits	$ 24.4

Employee Benefit Plans - Compon

Employee Benefit Plans - Components of Pension and Other Postretirement Benefit Income (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Pension benefits
Defined Benefit Plan Disclosure [Line Items]
Interest cost	$ 20.6	$ 10.8
Expected return on plan assets	(16.8)	(19.7)
Amortization of prior service credits	0	0
Net periodic benefit costs (income)	3.8	(8.9)
Other postretirement benefits
Defined Benefit Plan Disclosure [Line Items]
Interest cost	0.4	0.2
Expected return on plan assets	0	0
Amortization of prior service credits	(0.5)	(0.6)
Net periodic benefit costs (income)	$ (0.1)	$ (0.4)

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Numerator
Net income	$ 81.9	$ 87
Denominator
Weighted-average common shares outstanding (shares)	175.2	180.5
Effect of potentially dilutive securities (shares)	1.1	1.5
Weighted average diluted shares outstanding (shares)	176.3	182
Basic earnings per share
Continuing operations, basic earnings per share (usd per share)	$ 0.16	$ 0.19
Discontinued operations, basic earnings per share (usd per share)	0.31	0.29
Basic earnings per share (usd per share)	0.47	0.48
Earnings Per Share, Diluted [Abstract]
Continuing operations, diluted earnings per share (usd per share)	0.15	0.19
Discontinued operations, diluted earnings per share (usd per share)	0.31	0.29
Diluted earnings per share (usd per share)	$ 0.46	$ 0.48
Shares excluded from diluted earnings per share calculation due to anti-dilutive effect (shares)	0.2	0.1

Supplemental Financial Inform_3

Supplemental Financial Information - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions	Dec. 31, 2022	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash and cash equivalents	$ 21	$ 23.4	$ 42.8
Total cash, cash equivalents and restricted cash	93	83.9	153.7	$ 231.4
Discontinued Operations, Held-for-sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash and cash equivalents	70.5	59	108.9
Restricted cash - discontinued operations (a)	$ 1.5	$ 1.5	$ 2

Supplemental Financial Inform_4

Supplemental Financial Information - Summary of Accounts Receivable (Details) - USD ($) $ in Millions	Dec. 31, 2022	Sep. 30, 2022
Current
Trade	$ 56.4	$ 56.2
Other	4.1	14.5
Receivables, gross	60.5	70.7
Allowance for credit losses	(3.6)	(4.6)
Receivables, net	$ 56.9	$ 66.1

Supplemental Financial Inform_5

Supplemental Financial Information - Disaggregation of Sales by Timing of Revenue Recognized and Revenue by Category (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	$ 332.8	$ 287.3
Suspended Operations
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	(0.2)	(3.7)
Oil Change And Related Fees
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	247.2	211.5
Non-oil Change And Related Fees
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	69.8	58.3
Franchise Fees And Other
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	15.8	17.5
Net revenues transferred at a point in time
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	317.2	273.7
Franchised revenues transferred over time
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	$ 15.6	$ 13.6

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) shares in Millions, $ in Millions		1 Months Ended	3 Months Ended
	Feb. 01, 2023	Jan. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Subsequent Event [Line Items]
Stock repurchased and retired during period, value			$ 87.5	$ 31.4
Common stock
Subsequent Event [Line Items]
Stock repurchased and retired during period, shares (in shares)			2.9	0.9
Stock repurchased and retired during period, value			$ (0.1)
Common stock | Subsequent Event
Subsequent Event [Line Items]
Stock repurchased and retired during period, shares (in shares)		1.6
Stock repurchased and retired during period, value	$ 1,588.1	$ 54.9
Remaining authorized repurchase amount		43
Authorized shares for repurchase (up to)	$ 1,600	$ 300