Cover Page
Cover Page - shares | 3 Months Ended | |
Dec. 31, 2023 | Feb. 01, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2023 | |
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, Suite 100 | |
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 $0.01 per share | |
Trading Symbol | VVV | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Smaller Reporting Company | false | |
Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 129,649,167 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001674910 | |
Current Fiscal Year End Date | --09-30 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Net Income (Loss) Attributable to Parent [Abstract] | ||
Net revenues | $ 373.4 | $ 332.8 |
Cost of sales | 238.6 | 214 |
Gross profit | 134.8 | 118.8 |
Selling, general and administrative expenses | 74.5 | 66 |
Net legacy and separation-related expenses | 0.1 | 25.4 |
Other income, net | (2.6) | (1.9) |
Operating income | 62.8 | 29.3 |
Net pension and other postretirement plan expenses | 3.4 | 3.7 |
Net interest and other financing expenses | 13.6 | 18.7 |
Income before income taxes | 45.8 | 6.9 |
Income tax expense (benefit) | 11.9 | (20.1) |
Income from continuing operations | 33.9 | 27 |
(Loss) income from discontinued operations, net of tax | (2) | 54.9 |
Net income | $ 31.9 | $ 81.9 |
NET EARNINGS PER SHARE | ||
Continuing operations, basic earnings per share (usd per share) | $ 0.26 | $ 0.16 |
Discontinued operations, basic earnings per share (usd per share) | (0.02) | 0.31 |
Basic earnings per share (usd per share) | 0.24 | 0.47 |
Continuing operations, diluted earnings per share (usd per share) | 0.26 | 0.15 |
Discontinued operations, diluted earnings per share (usd per share) | (0.02) | 0.31 |
Diluted earnings per share (usd per share) | $ 0.24 | $ 0.46 |
Weighted average common shares outstanding | ||
Weighted average common shares outstanding, basic (in shares) | 131.8 | 175.2 |
Weighted average common shares outstanding, diluted (in shares) | 132.7 | 176.3 |
COMPREHENSIVE INCOME | ||
Net income | $ 31.9 | $ 81.9 |
Other comprehensive income (loss), net of tax | ||
Currency translation adjustments | 6.6 | 15.2 |
Amortization of pension and other postretirement plan prior service credits | (0.5) | (0.4) |
Unrealized loss on cash flow hedges | (1.9) | (1.3) |
Other comprehensive income | 4.2 | 13.5 |
Comprehensive income | $ 36.1 | $ 95.4 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2023 | Sep. 30, 2023 |
Assets, Current [Abstract] | ||
Cash and cash equivalents | $ 420.7 | $ 409.1 |
Receivables, net | 83.5 | 81.3 |
Inventories, net | 31.5 | 33.3 |
Prepaid expenses and other current assets | 55.2 | 65.5 |
Short-term investments | 119.7 | 347.5 |
Total current assets | 710.6 | 936.7 |
Noncurrent assets | ||
Property, plant and equipment, net | 841.5 | 818.3 |
Operating lease assets | 273.1 | 266.5 |
Goodwill and intangibles, net | 685.6 | 680.6 |
Other noncurrent assets | 198.5 | 187.8 |
Total noncurrent assets | 1,998.7 | 1,953.2 |
Total assets | 2,709.3 | 2,889.9 |
Current liabilities | ||
Current portion of long-term debt | 23.8 | 23.8 |
Trade and other payables | 77.2 | 118.7 |
Accrued expenses and other liabilities | 216.4 | 215.9 |
Current liabilities held for sale | 0 | 3.9 |
Total current liabilities | 317.4 | 362.3 |
Noncurrent liabilities | ||
Long-term debt | 1,556.8 | 1,562.3 |
Employee benefit obligations | 169.9 | 168 |
Operating lease liabilities | 253.9 | 247.3 |
Other noncurrent liabilities | 346.5 | 346.8 |
Total noncurrent liabilities | 2,327.1 | 2,324.4 |
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, 400.0 shares authorized; 129.6 and 134.8 shares issued and outstanding at December 31, 2023 and September 30, 2023, respectively | 1.3 | 1.3 |
Paid-in capital | 46.3 | 48 |
Retained (deficit) earnings | (0.2) | 140.7 |
Accumulated other comprehensive income | 17.4 | 13.2 |
Total stockholders’ equity | 64.8 | 203.2 |
Total liabilities and stockholders’ equity | $ 2,709.3 | $ 2,889.9 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2023 | Sep. 30, 2023 |
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) | 129,600,000 | 134,800,000 |
Common stock outstanding (shares) | 129,600,000 | 134,800,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Deficit - USD ($) shares in Millions, $ in Millions | Total | Common stock | Paid-in capital | Retained earnings (deficit) | Accumulated other comprehensive income |
Common stock outstanding, at beginning of period (shares) at Sep. 30, 2022 | 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) | |||
Repurchases of common stock (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 | ||||
Balance at end of period at Dec. 31, 2022 | $ 289.3 | $ 1.7 | 40.8 | 254.6 | (7.8) |
Common stock outstanding, at beginning of period (shares) at Sep. 30, 2023 | 134.8 | 134.8 | |||
Balance at beginning of period at Sep. 30, 2023 | $ 203.2 | $ 1.3 | 48 | 140.7 | 13.2 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 31.9 | 31.9 | |||
Stock-based compensation, net of issuances (in shares) | 0.2 | ||||
Stock-based compensation, net of issuances | (1.7) | (1.7) | |||
Repurchases of common stock (shares) | (5.4) | ||||
Repurchases of common stock | (172.8) | $ 0 | (172.8) | ||
Other comprehensive income, net of tax | $ 4.2 | 4.2 | |||
Common stock outstanding, at end of period (shares) at Dec. 31, 2023 | 129.6 | 129.6 | |||
Balance at end of period at Dec. 31, 2023 | $ 64.8 | $ 1.3 | $ 46.3 | $ (0.2) | $ 17.4 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Deficit (Parenthetical) | 3 Months Ended |
Dec. 31, 2022 $ / shares | |
Statement of Stockholders' Equity [Abstract] | |
Dividends paid per common share (usd per share) | $ 0.125 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash flows from operating activities | ||
Net income | $ 31.9 | $ 81.9 |
Adjustments to reconcile net income to cash flows from operating activities: | ||
Loss (income) from discontinued operations | 2 | (54.9) |
Depreciation and amortization | 24.6 | 18.5 |
Deferred income taxes | 0 | (26.5) |
Stock-based compensation expense | 2.4 | 2.9 |
Other, net | 1 | 0.6 |
Change in operating assets and liabilities | ||
Receivables | 2.4 | 13.4 |
Inventories | 3 | (1) |
Payables and accrued liabilities | (43.7) | (17.2) |
Other assets and liabilities | (1.7) | 30.8 |
Operating cash flows from continuing operations | 21.9 | 48.5 |
Operating cash flows from discontinued operations | (2) | (57.2) |
Total cash provided by (used in) operating activities | 19.9 | (8.7) |
Cash flows from investing activities | ||
Additions to property, plant and equipment | (42.3) | (39.9) |
Acquisitions of businesses | (8.3) | (9.6) |
Proceeds from maturities of short-term investments | 230 | 0 |
Other investing activities, net | (7.1) | 1.1 |
Investing cash flows from continuing operations | 172.3 | (48.4) |
Investing cash flows from discontinued operations | 0 | (8.4) |
Total cash provided by (used in) investing activities | 172.3 | (56.8) |
Cash flows from financing activities | ||
Proceeds from borrowings | 0 | 250 |
Repayments on borrowings | (5.9) | (119.4) |
Repurchases of common stock | (171.7) | (87.4) |
Cash dividends paid | 0 | (21.8) |
Other financing activities | (7.1) | (8.9) |
Financing cash flows from continuing operations | (184.7) | 12.5 |
Financing cash flows from discontinued operations | 0 | 60 |
Total cash (used in) provided by financing activities | (184.7) | 72.5 |
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash | 0.1 | 2.1 |
Increase (decrease) in cash, cash equivalents, and restricted cash | 7.6 | 9.1 |
Cash, cash equivalents, and restricted cash - beginning of period | 413.1 | 83.9 |
Cash, cash equivalents, and restricted cash - end of period | $ 420.7 | $ 93 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Dec. 31, 2023 | |
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, 2023. 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. Sale of Global Products business On March 1, 2023, Valvoline completed the sale of its former Global Products reportable segment (“Global Products”) to Aramco Overseas Company B.V. (“Aramco” or the “Buyer”) (the “Transaction”). The operating results and cash flows associated with and directly attributed to the Global Products disposal group are reflected as discontinued operations within these condensed consolidated financial statements. Refer to Note 2 for additional information regarding the Global Products business, including income from discontinued operations. Unless otherwise noted, disclosures within these remaining Notes to Condensed Consolidated Financial Statements relate solely to the Company's continuing operations. Recent accounting pronouncements The following accounting guidance relevant to Valvoline was either issued or adopted in the current fiscal year or is expected to have a meaningful impact on Valvoline in future periods upon adoption. Issued but not yet adopted In November 2023, the Financial Accounting Standards Board (“FASB”) issued guidance that enhances reportable segment disclosures by requiring disclosure of significant reportable segment expenses and other items regularly provided to the Chief Operating Decision Maker (“CODM”) and included within measures of a segment’s profit or loss, inclusive of entities that operate in a single reportable segment. This guidance must be applied retrospectively to all prior periods presented and will become effective for Valvoline beginning with its fiscal 2025 annual financial statements and interim periods starting in fiscal 2026, with early adoption permitted. Valvoline is currently evaluating the impact this guidance will have on the Company and expects adoption will require enhanced disclosures regarding its CODM and the information used in assessing performance and allocating resources, including significant expenses. In December 2023, the FASB issued guidance which enhances income tax disclosure requirements to include additional disaggregation within the effective tax rate reconciliation and income taxes paid. This guidance will be effective for Valvoline beginning with its fiscal 2026 annual financial statements, with early adoption permitted. The guidance must be applied prospectively, while retrospective application is permitted. The Company is currently assessing the impact of adoption, which is expected to result in enhanced income tax disclosures. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Dec. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | DISCONTINUED OPERATIONS Sale of Global Products Financial results On March 1, 2023, Valvoline completed the sale of Global Products for a cash purchase price of $2.650 billion and recognized a pre-tax gain on the sale within Income from discontinued operations, net of tax, during the second quarter of fiscal 2023, coinciding with the completion of the sale. The Transaction was subject to customary closing settlements that were finalized in the third quarter of The following table summarizes Income from discontinued operations within the Condensed Consolidated Statements of Comprehensive Income: Three months ended (In millions) 2023 2022 Net revenues $ — $ 705.8 Cost of sales — 556.6 Gross profit — 149.2 Selling, general and administrative expenses — 72.3 Net legacy and separation-related expenses 2.3 6.2 Equity and other income, net — (9.2) Operating (loss) income from discontinued operations (2.3) 79.9 Net pension and other postretirement plan expense — 0.1 Net interest and other financing expenses — 2.3 (Loss) income before income taxes - discontinued operations (2.3) 77.5 Income tax (benefit) expense (0.3) 22.6 (Loss) income from discontinued operations, net of tax $ (2.0) $ 54.9 Post-closing arrangements Valvoline sources substantially all lubricant and certain ancillary products for its stores through a long-term supply agreement with Global Products. Net revenues within the results of Global Products above include product sales to the Company's continuing operations prior to the closing of the Transaction, which were considered to be effectively settled and were not eliminated. For the three months ended December 31, 2022, these transactions totaled $55.1 million. Valvoline also entered into a Transition Services Agreement with Global Products, effective March 1, 2023, to provide and receive services including information technology, legal, finance, and human resources support for a period not expected to exceed 18 months. The income and costs associated with these services were not material during the three months ended December 31, 2023. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Recurring fair value measurements The following tables set forth the Company’s financial assets and liabilities by level within the fair value hierarchy for those measured at fair value on a recurring basis: As of December 31, 2023 (In millions) Total Level 1 Level 2 Level 3 NAV (a) Cash and cash equivalents Money market funds $ 235.2 $ 235.2 $ — $ — $ — Time deposits 90.9 — 90.9 — — Prepaid expenses and other current assets Interest rate swap agreements 5.2 — 5.2 — — Other noncurrent assets Non-qualified trust funds 1.9 — — — 1.9 Deferred compensation investments 20.6 20.6 — — — Total assets at fair value $ 353.8 $ 255.8 $ 96.1 $ — $ 1.9 Other noncurrent liabilities Deferred compensation obligations $ 23.0 $ — $ — $ — $ 23.0 Total liabilities at fair value $ 23.0 $ — $ — $ — $ 23.0 As of September 30, 2023 (In millions) Total Level 1 Level 2 Level 3 NAV (a) Cash and cash equivalents Money market funds $ 0.6 $ 0.6 $ — $ — $ — Time deposits 277.3 — 277.3 — — Prepaid expenses and other current assets Currency derivatives (b) 0.1 — 0.1 — — Interest rate swap agreements 7.8 — 7.8 — — Other noncurrent assets Non-qualified trust funds 2.1 — — — 2.1 Deferred compensation investments 19.0 19.0 — — — Total assets at fair value $ 306.9 $ 19.6 $ 285.2 $ — $ 2.1 Accrued expenses and other liabilities Currency derivatives (b) $ 0.1 $ — $ 0.1 $ — $ — Other noncurrent liabilities Deferred compensation obligations 20.8 — — — 20.8 Total liabilities at fair value $ 20.9 $ — $ 0.1 $ — $ 20.8 (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 $29.7 million as of September 30, 2023. Fair value disclosures The Company’s held-to-maturity U.S. treasury securities and long-term debt are reported in the Condensed Consolidated Balance Sheets at carrying value, rather than fair value, and are 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 following disclosures summarize the fair value of these assets and liabilities at each relevant balance sheet date. U.S. treasury securities The fair values of the Company’s U.S. treasury securities summarized below are determined utilizing quoted prices for identical securities from less active markets, which are considered Level 2 inputs within the fair value hierarchy. December 31, 2023 September 30, 2023 (In millions) Amortized cost Gross unrealized losses Fair value Amortized cost Gross unrealized losses Fair value Cash and cash equivalents U.S. treasury securities (a) $ — $ — $ — $ 2.2 $ — $ 2.2 Short-term investments U.S. treasury securities (b) $ 119.7 $ (0.1) $ 119.6 $ 347.5 $ (0.5) $ 347.0 (a) U.S. treasury securities with original maturity dates of three months or less. (b) U.S. treasury securities with original maturities greater than three months and less than 12 months. Long-term debt 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, 2023 September 30, 2023 (In millions) Fair value Carrying value (a) Unamortized Fair value Carrying value (a) Unamortized 2030 Notes $ 597.9 $ 594.6 $ (5.4) $ 589.8 $ 594.5 $ (5.5) 2031 Notes 455.0 530.0 (5.0) 416.6 529.9 (5.2) Total $ 1,052.9 $ 1,124.6 $ (10.4) $ 1,006.4 $ 1,124.4 $ (10.7) (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, 2023 | |
Business Combinations [Abstract] | |
Business Combinations | BUSINESS COMBINATIONS The Company acquired five service center stores in single and multi-store transactions for an aggregate purchase price of $8.3 million during the three months ended December 31, 2023. These acquisitions expand Valvoline's retail presence in key North American markets, increase the number of company-operated service center stores, and contribute to growing the retail footprint to 1,890 system-wide service center stores. During the three months ended December 31, 2022, the Company acquired seven service center stores in single and multi-store transactions for an aggregate purchase price of $9.6 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) 2023 2022 Inventories $ — $ 0.3 Property, plant and equipment (a) 1.0 2.0 Operating lease assets 1.9 2.1 Goodwill (b) 7.9 6.1 Intangible assets (c) Reacquired franchise rights (d) — 2.3 Other 0.1 0.1 Other current liabilities (a) (0.1) (0.2) Operating lease liabilities — (2.0) Other noncurrent liabilities (a) (2.5) (1.1) Total net assets acquired $ 8.3 $ 9.6 (a) Includes finance lease assets in property, plant and equipment and finance lease liabilities in other current and noncurrent liabilities. During the three months ended December 31, 2023, finance lease assets finance lease liabilities 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, 2023 and 2022 have weighted average amortization periods of five (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 ten 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. There have been no franchise rights reacquired during fiscal 2024. The fair values above are preliminary for up to one year from the date of acquisition as they may be subject to measurement period adjustments if new information is obtained about facts and circumstances that existed as of the acquisition date. The Company does not currently expect any material changes to the preliminary purchase price allocations for acquisitions completed during the last twelve months. |
Debt
Debt | 3 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | DEBT The following table summarizes Valvoline’s total debt as of: (In millions) December 31 September 30 2023 2031 Notes $ 535.0 $ 535.0 2030 Notes 600.0 600.0 Term Loan 457.2 463.1 Revolver (a) — — Debt issuance costs and discounts (11.6) (12.0) Total debt 1,580.6 1,586.1 Current portion of long-term debt 23.8 23.8 Long-term debt $ 1,556.8 $ 1,562.3 (a) As of December 31, 2023, the total borrowing capacity remaining under the $475.0 million revolving credit facility was $471.6 million due to a reduction of $3.4 million for letters of credit outstanding. As of December 31, 2023, Valvoline was in compliance with all covenants under its long-term borrowings. |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2023 | |
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 (In millions) 2023 2022 Income tax expense (benefit) $ 11.9 $ (20.1) Effective tax rate percentage 26.0 % (291.3) % |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS The following table summarizes the components of pension and other postretirement plan expense: Pension benefits Other postretirement benefits (In millions) 2023 2022 2023 2022 Three months ended December 31 Interest cost $ 20.9 $ 20.6 $ 0.3 $ 0.4 Expected return on plan assets (17.2) (16.8) — — Amortization of prior service credits — — (0.6) (0.5) Net periodic benefit costs (income) $ 3.7 $ 3.8 $ (0.3) $ (0.1) |
Litigation, Claims and Continge
Litigation, Claims and Contingencies | 3 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation, Claims and Contingencies | LITIGATION, CLAIMS AND CONTINGENCIES From time to time, Valvoline is party to lawsuits, claims and other legal proceedings that arise in the ordinary course of business. The Company establishes liabilities for the outcome of such matters where losses are determined to be probable and reasonably estimable. Where appropriate, the Company has recorded liabilities with respect to these matters, which were not material for the periods presented as reflected in the condensed consolidated financial statements herein. There are certain claims and legal proceedings pending where loss is not determined to be probable or reasonably estimable, and therefore, accruals have not been made. In addition, Valvoline discloses matters when management believes a material loss is at least reasonably possible. In all instances, management has assessed each matter based on current information available and made a judgment concerning its potential outcome, giving due consideration to the amount and nature of the claim and the probability of success. The Company believes it has established adequate accruals for liabilities that are probable and reasonably estimable. Although the ultimate resolution of these matters cannot be predicted with certainty and there can be no assurances that the actual amounts required to satisfy liabilities from these matters will not exceed the amounts reflected in the condensed consolidated financial statements, based on information available at this time, it is the opinion of management that such pending claims or proceedings will not have a material adverse effect on its condensed consolidated financial statements. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following table summarizes basic and diluted earnings per share: Three months ended (In millions, except per share amounts) 2023 2022 Numerator Income from continuing operations $ 33.9 $ 27.0 (Loss) income from discontinued operations, net of tax (2.0) 54.9 Net income $ 31.9 $ 81.9 Denominator Weighted average common shares outstanding 131.8 175.2 Effect of potentially dilutive securities (a) 0.9 1.1 Weighted average diluted shares outstanding 132.7 176.3 Basic earnings (loss) per share Continuing operations $ 0.26 $ 0.16 Discontinued operations (0.02) 0.31 Basic earnings per share $ 0.24 $ 0.47 Diluted earnings (loss) per share Continuing operations $ 0.26 $ 0.15 Discontinued operations (0.02) 0.31 Diluted earnings per share $ 0.24 $ 0.46 (a) |
Supplemental Financial Informat
Supplemental Financial Information | 3 Months Ended |
Dec. 31, 2023 | |
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 $ 420.7 $ 409.1 $ 21.0 Cash and cash equivalents - held for sale (a) — 4.0 — Cash and cash equivalents - discontinued operations — — 70.5 Restricted cash - discontinued operations — — 1.5 Total cash, cash equivalents and restricted cash $ 420.7 $ 413.1 $ 93.0 (a) Former Global Products business whose operations were suspended during fiscal 2022, classified as held for sale and impaired as of September 30, 2023, and subsequently sold during the first quarter of fiscal 2024. 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 2023 Current Trade $ 65.9 $ 64.0 Other 18.1 17.9 Receivables, gross 84.0 81.9 Allowance for credit losses (0.5) (0.6) Receivables, net $ 83.5 $ 81.3 Non-current (a) Notes receivable $ 2.4 $ 2.3 Other 7.6 7.5 Noncurrent notes receivable, gross 10.0 9.8 Allowance for losses (2.4) (2.4) Noncurrent notes receivable, net $ 7.6 $ 7.4 (a) Included in Other noncurrent assets within the Condensed Consolidated Balance Sheets. Revenue recognition The following disaggregates the Company’s net revenues by timing of revenue recognized: Three months ended (In millions) 2023 2022 Net revenues transferred at a point in time $ 355.9 $ 317.2 Franchised revenues transferred over time 17.5 15.6 Net revenues $ 373.4 $ 332.8 The following table summarizes net revenues by category: Three months ended (In millions) 2023 2022 Oil changes and related fees $ 277.5 $ 247.2 Non-oil changes and related fees 78.2 69.8 Franchise fees and other (a) 17.7 15.8 Total $ 373.4 $ 332.8 (a) Includes $0.2 million of net revenues associated with suspended operations in the three months ended December 31, 2022. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Pay vs Performance Disclosure | ||
Net income | $ 31.9 | $ 81.9 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Dec. 31, 2023 | |
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, 2023. 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. Sale of Global Products business On March 1, 2023, Valvoline completed the sale of its former Global Products reportable segment (“Global Products”) to Aramco Overseas Company B.V. (“Aramco” or the “Buyer”) (the “Transaction”). The operating results and cash flows associated with and directly attributed to the Global Products disposal group are reflected as discontinued operations within these condensed consolidated financial statements. Refer to Note 2 for additional information regarding the Global Products business, including income from discontinued operations. Unless otherwise noted, disclosures within these remaining Notes to Condensed Consolidated Financial Statements relate solely to the Company's continuing operations. |
Recent accounting pronouncements | The following accounting guidance relevant to Valvoline was either issued or adopted in the current fiscal year or is expected to have a meaningful impact on Valvoline in future periods upon adoption. Issued but not yet adopted In November 2023, the Financial Accounting Standards Board (“FASB”) issued guidance that enhances reportable segment disclosures by requiring disclosure of significant reportable segment expenses and other items regularly provided to the Chief Operating Decision Maker (“CODM”) and included within measures of a segment’s profit or loss, inclusive of entities that operate in a single reportable segment. This guidance must be applied retrospectively to all prior periods presented and will become effective for Valvoline beginning with its fiscal 2025 annual financial statements and interim periods starting in fiscal 2026, with early adoption permitted. Valvoline is currently evaluating the impact this guidance will have on the Company and expects adoption will require enhanced disclosures regarding its CODM and the information used in assessing performance and allocating resources, including significant expenses. In December 2023, the FASB issued guidance which enhances income tax disclosure requirements to include additional disaggregation within the effective tax rate reconciliation and income taxes paid. This guidance will be effective for Valvoline beginning with its fiscal 2026 annual financial statements, with early adoption permitted. The guidance must be applied prospectively, while retrospective application is permitted. The Company is currently assessing the impact of adoption, which is expected to result in enhanced income tax disclosures. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
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) 2023 2022 Net revenues $ — $ 705.8 Cost of sales — 556.6 Gross profit — 149.2 Selling, general and administrative expenses — 72.3 Net legacy and separation-related expenses 2.3 6.2 Equity and other income, net — (9.2) Operating (loss) income from discontinued operations (2.3) 79.9 Net pension and other postretirement plan expense — 0.1 Net interest and other financing expenses — 2.3 (Loss) income before income taxes - discontinued operations (2.3) 77.5 Income tax (benefit) expense (0.3) 22.6 (Loss) income from discontinued operations, net of tax $ (2.0) $ 54.9 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities at Fair Value | The following tables set forth the Company’s financial assets and liabilities by level within the fair value hierarchy for those measured at fair value on a recurring basis: As of December 31, 2023 (In millions) Total Level 1 Level 2 Level 3 NAV (a) Cash and cash equivalents Money market funds $ 235.2 $ 235.2 $ — $ — $ — Time deposits 90.9 — 90.9 — — Prepaid expenses and other current assets Interest rate swap agreements 5.2 — 5.2 — — Other noncurrent assets Non-qualified trust funds 1.9 — — — 1.9 Deferred compensation investments 20.6 20.6 — — — Total assets at fair value $ 353.8 $ 255.8 $ 96.1 $ — $ 1.9 Other noncurrent liabilities Deferred compensation obligations $ 23.0 $ — $ — $ — $ 23.0 Total liabilities at fair value $ 23.0 $ — $ — $ — $ 23.0 As of September 30, 2023 (In millions) Total Level 1 Level 2 Level 3 NAV (a) Cash and cash equivalents Money market funds $ 0.6 $ 0.6 $ — $ — $ — Time deposits 277.3 — 277.3 — — Prepaid expenses and other current assets Currency derivatives (b) 0.1 — 0.1 — — Interest rate swap agreements 7.8 — 7.8 — — Other noncurrent assets Non-qualified trust funds 2.1 — — — 2.1 Deferred compensation investments 19.0 19.0 — — — Total assets at fair value $ 306.9 $ 19.6 $ 285.2 $ — $ 2.1 Accrued expenses and other liabilities Currency derivatives (b) $ 0.1 $ — $ 0.1 $ — $ — Other noncurrent liabilities Deferred compensation obligations 20.8 — — — 20.8 Total liabilities at fair value $ 20.9 $ — $ 0.1 $ — $ 20.8 (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 $29.7 million as of September 30, 2023. |
Schedule of Held-to-Maturity Securities | The fair values of the Company’s U.S. treasury securities summarized below are determined utilizing quoted prices for identical securities from less active markets, which are considered Level 2 inputs within the fair value hierarchy. December 31, 2023 September 30, 2023 (In millions) Amortized cost Gross unrealized losses Fair value Amortized cost Gross unrealized losses Fair value Cash and cash equivalents U.S. treasury securities (a) $ — $ — $ — $ 2.2 $ — $ 2.2 Short-term investments U.S. treasury securities (b) $ 119.7 $ (0.1) $ 119.6 $ 347.5 $ (0.5) $ 347.0 (a) U.S. treasury securities with original maturity dates of three months or less. (b) U.S. treasury securities with original maturities greater than three months and less than 12 months. |
Summary of Fair Value of Debt | 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, 2023 September 30, 2023 (In millions) Fair value Carrying value (a) Unamortized Fair value Carrying value (a) Unamortized 2030 Notes $ 597.9 $ 594.6 $ (5.4) $ 589.8 $ 594.5 $ (5.5) 2031 Notes 455.0 530.0 (5.0) 416.6 529.9 (5.2) Total $ 1,052.9 $ 1,124.6 $ (10.4) $ 1,006.4 $ 1,124.4 $ (10.7) (a) |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
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) 2023 2022 Inventories $ — $ 0.3 Property, plant and equipment (a) 1.0 2.0 Operating lease assets 1.9 2.1 Goodwill (b) 7.9 6.1 Intangible assets (c) Reacquired franchise rights (d) — 2.3 Other 0.1 0.1 Other current liabilities (a) (0.1) (0.2) Operating lease liabilities — (2.0) Other noncurrent liabilities (a) (2.5) (1.1) Total net assets acquired $ 8.3 $ 9.6 (a) Includes finance lease assets in property, plant and equipment and finance lease liabilities in other current and noncurrent liabilities. During the three months ended December 31, 2023, finance lease assets finance lease liabilities 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, 2023 and 2022 have weighted average amortization periods of five (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 ten 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. There have been no franchise rights reacquired during fiscal 2024. |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Total Debt | The following table summarizes Valvoline’s total debt as of: (In millions) December 31 September 30 2023 2031 Notes $ 535.0 $ 535.0 2030 Notes 600.0 600.0 Term Loan 457.2 463.1 Revolver (a) — — Debt issuance costs and discounts (11.6) (12.0) Total debt 1,580.6 1,586.1 Current portion of long-term debt 23.8 23.8 Long-term debt $ 1,556.8 $ 1,562.3 (a) As of December 31, 2023, the total borrowing capacity remaining under the $475.0 million revolving credit facility was $471.6 million due to a reduction of $3.4 million for letters of credit outstanding. |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
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 (In millions) 2023 2022 Income tax expense (benefit) $ 11.9 $ (20.1) Effective tax rate percentage 26.0 % (291.3) % |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Components of Pension and Other Postretirement Benefit Income | The following table summarizes the components of pension and other postretirement plan expense: Pension benefits Other postretirement benefits (In millions) 2023 2022 2023 2022 Three months ended December 31 Interest cost $ 20.9 $ 20.6 $ 0.3 $ 0.4 Expected return on plan assets (17.2) (16.8) — — Amortization of prior service credits — — (0.6) (0.5) Net periodic benefit costs (income) $ 3.7 $ 3.8 $ (0.3) $ (0.1) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
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 (In millions, except per share amounts) 2023 2022 Numerator Income from continuing operations $ 33.9 $ 27.0 (Loss) income from discontinued operations, net of tax (2.0) 54.9 Net income $ 31.9 $ 81.9 Denominator Weighted average common shares outstanding 131.8 175.2 Effect of potentially dilutive securities (a) 0.9 1.1 Weighted average diluted shares outstanding 132.7 176.3 Basic earnings (loss) per share Continuing operations $ 0.26 $ 0.16 Discontinued operations (0.02) 0.31 Basic earnings per share $ 0.24 $ 0.47 Diluted earnings (loss) per share Continuing operations $ 0.26 $ 0.15 Discontinued operations (0.02) 0.31 Diluted earnings per share $ 0.24 $ 0.46 (a) |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
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 $ 420.7 $ 409.1 $ 21.0 Cash and cash equivalents - held for sale (a) — 4.0 — Cash and cash equivalents - discontinued operations — — 70.5 Restricted cash - discontinued operations — — 1.5 Total cash, cash equivalents and restricted cash $ 420.7 $ 413.1 $ 93.0 (a) Former Global Products business whose operations were suspended during fiscal 2022, classified as held for sale and impaired as of September 30, 2023, and subsequently sold during the first quarter of fiscal 2024. |
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 2023 Current Trade $ 65.9 $ 64.0 Other 18.1 17.9 Receivables, gross 84.0 81.9 Allowance for credit losses (0.5) (0.6) Receivables, net $ 83.5 $ 81.3 Non-current (a) Notes receivable $ 2.4 $ 2.3 Other 7.6 7.5 Noncurrent notes receivable, gross 10.0 9.8 Allowance for losses (2.4) (2.4) Noncurrent notes receivable, net $ 7.6 $ 7.4 (a) Included in Other noncurrent assets within the Condensed Consolidated Balance Sheets. |
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 (In millions) 2023 2022 Net revenues transferred at a point in time $ 355.9 $ 317.2 Franchised revenues transferred over time 17.5 15.6 Net revenues $ 373.4 $ 332.8 The following table summarizes net revenues by category: Three months ended (In millions) 2023 2022 Oil changes and related fees $ 277.5 $ 247.2 Non-oil changes and related fees 78.2 69.8 Franchise fees and other (a) 17.7 15.8 Total $ 373.4 $ 332.8 (a) Includes $0.2 million of net revenues associated with suspended operations in the three months ended December 31, 2022. |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - Discontinued Operations, Held-for-sale - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 01, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2023 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net revenues | $ 0 | $ 705.8 | ||
Global Products | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from sale of operations | $ 2,650 | |||
Gain on sale of discontinued operations (a) | $ 1,572 | |||
Net revenues | $ 55.1 |
Discontinued Operations - Conso
Discontinued Operations - Consolidated Statements of Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net interest and other financing expenses | $ 13.6 | $ 18.7 |
Income tax expense (benefit) | 11.9 | (20.1) |
(Loss) income from discontinued operations, net of tax | (2) | 54.9 |
Discontinued Operations, Held-for-sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net revenues | 0 | 705.8 |
Cost of sales | 0 | 556.6 |
Gross profit | 0 | 149.2 |
Selling, general and administrative expenses | 0 | 72.3 |
Net legacy and separation-related expenses | 2.3 | 6.2 |
Equity and other income, net | 0 | (9.2) |
Operating (loss) income from discontinued operations | (2.3) | 79.9 |
Net pension and other postretirement plan expense | 0 | 0.1 |
Net interest and other financing expenses | 0 | 2.3 |
(Loss) income before income taxes - discontinued operations | (2.3) | 77.5 |
Income tax expense (benefit) | (0.3) | 22.6 |
(Loss) income from discontinued operations, net of tax | $ (2) | $ 54.9 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities at Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Sep. 30, 2023 |
Foreign Exchange Contract | Not Designated as Hedging Instrument | ||
Accrued expenses and other liabilities | ||
Derivative, notional amount | $ 29.7 | |
Level 1 | ||
Other noncurrent assets | ||
Total assets at fair value | $ 255.8 | 19.6 |
Accrued expenses and other liabilities | ||
Total liabilities at fair value | 0 | 0 |
Level 2 | ||
Other noncurrent assets | ||
Total assets at fair value | 96.1 | 285.2 |
Accrued expenses and other liabilities | ||
Total liabilities at fair value | 0 | 0.1 |
NAV (a) | ||
Other noncurrent assets | ||
Total assets at fair value | 1.9 | 2.1 |
Accrued expenses and other liabilities | ||
Total liabilities at fair value | 23 | 20.8 |
Fair Value, Measurements, Recurring | ||
Prepaid Expense and Other Assets, Current [Abstract] | ||
Currency derivatives | 0.1 | |
Other noncurrent assets | ||
Non-qualified trust funds | 1.9 | 2.1 |
Deferred compensation investments | 20.6 | 19 |
Total assets at fair value | 353.8 | 306.9 |
Accrued expenses and other liabilities | ||
Currency derivatives | 0.1 | |
Deferred compensation obligations | 23 | 20.8 |
Total liabilities at fair value | 23 | 20.9 |
Fair Value, Measurements, Recurring | Money market funds | ||
Cash and cash equivalents | ||
Cash and cash equivalents | 235.2 | 0.6 |
Fair Value, Measurements, Recurring | Time deposits | ||
Cash and cash equivalents | ||
Cash and cash equivalents | 90.9 | 277.3 |
Fair Value, Measurements, Recurring | Prepaid expenses and other current assets | ||
Prepaid Expense and Other Assets, Current [Abstract] | ||
Interest rate swap agreements | 5.2 | 7.8 |
Fair Value, Measurements, Recurring | Level 1 | ||
Other noncurrent assets | ||
Deferred compensation investments | 20.6 | 19 |
Fair Value, Measurements, Recurring | Level 1 | Money market funds | ||
Cash and cash equivalents | ||
Cash and cash equivalents | 235.2 | 0.6 |
Fair Value, Measurements, Recurring | Level 2 | ||
Prepaid Expense and Other Assets, Current [Abstract] | ||
Currency derivatives | 0.1 | |
Other noncurrent assets | ||
Non-qualified trust funds | 0 | 0 |
Accrued expenses and other liabilities | ||
Currency derivatives | 0.1 | |
Fair Value, Measurements, Recurring | Level 2 | Time deposits | ||
Cash and cash equivalents | ||
Cash and cash equivalents | 90.9 | 277.3 |
Fair Value, Measurements, Recurring | Level 2 | Prepaid expenses and other current assets | ||
Prepaid Expense and Other Assets, Current [Abstract] | ||
Interest rate swap agreements | 5.2 | 7.8 |
Fair Value, Measurements, Recurring | NAV (a) | ||
Other noncurrent assets | ||
Non-qualified trust funds | 1.9 | 2.1 |
Accrued expenses and other liabilities | ||
Deferred compensation obligations | $ 23 | $ 20.8 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Debt (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | $ 420.7 | $ 409.1 | $ 21 |
Unamortized discounts and issuance costs | 11.6 | 12 | |
Level 2 | Fair value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, fair value | 1,052.9 | 1,006.4 | |
Level 2 | Fair value | Senior Notes | 2030 Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, fair value | 597.9 | 589.8 | |
Level 2 | Fair value | Senior Notes | 2031 Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, fair value | 455 | 416.6 | |
Level 2 | Carrying value (a) | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, fair value | 1,124.6 | 1,124.4 | |
Unamortized discounts and issuance costs | (10.4) | (10.7) | |
Level 2 | Carrying value (a) | Senior Notes | 2030 Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, fair value | 594.6 | 594.5 | |
Unamortized discounts and issuance costs | (5.4) | (5.5) | |
Level 2 | Carrying value (a) | Senior Notes | 2031 Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, fair value | 530 | 529.9 | |
Unamortized discounts and issuance costs | (5) | (5.2) | |
U.S. treasury securities | Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Amortized cost | 119.7 | 347.5 | |
Gross unrealized losses | (0.1) | (0.5) | |
Fair value | 119.6 | 347 | |
U.S. treasury securities | Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | 0 | 2.2 | |
Cash and cash equivalents, fair value | $ 0 | $ 2.2 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) $ in Millions | 3 Months Ended | |
Dec. 31, 2023 USD ($) stores service_center_store | Dec. 31, 2022 USD ($) service_center_store | |
Business Combinations [Abstract] | ||
Number of service center stores acquired | service_center_store | 5 | 7 |
Total consideration transferred | $ | $ 8.3 | $ 9.6 |
Number of system-wide service center stores | stores | 1,890 |
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, 2023 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | ||
Inventories | $ 0 | $ 0.3 |
Property, plant and equipment (a) | 1 | 2 |
Operating lease assets | 1.9 | 2.1 |
Goodwill (b) | 7.9 | 6.1 |
Other current liabilities (a) | (0.1) | (0.2) |
Operating lease liabilities | 0 | (2) |
Other noncurrent liabilities (a) | (2.5) | (1.1) |
Total net assets acquired | 8.3 | 9.6 |
Finance lease assets | $ 0.7 | $ 1.1 |
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, Statement of Financial Position [Extensible Enumeration] | Other noncurrent liabilities | Other noncurrent liabilities |
Finance lease liabilities, noncurrent | $ 0.7 | $ 1.1 |
Weighted average amortization period | 5 years | 9 years |
Reacquired franchise rights (d) | ||
Business Acquisition [Line Items] | ||
Intangible assets (c) | $ 0 | $ 2.3 |
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, 2023 | Sep. 30, 2023 |
Debt Instrument [Line Items] | ||
Debt issuance costs and discounts | $ (11,600,000) | $ (12,000,000) |
Total debt | 1,580,600,000 | 1,586,100,000 |
Current portion of long-term debt | 23,800,000 | 23,800,000 |
Long-term debt | 1,556,800,000 | 1,562,300,000 |
Line of Credit | Revolver (a) | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | 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 | 457,200,000 | $ 463,100,000 |
Term Loan | Line of Credit | Revolver (a) | ||
Debt Instrument [Line Items] | ||
Debt gross | 475,000,000 | |
Total borrowing capacity remaining | 471,600,000 | |
Letters of credit outstanding | $ 3,400,000 |
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, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense (benefit) | $ 11.9 | $ (20.1) |
Effective tax rate percentage | 26% | (291.30%) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2023 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, 2023 | Dec. 31, 2022 | |
Pension benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | $ 20.9 | $ 20.6 |
Expected return on plan assets | (17.2) | (16.8) |
Amortization of prior service credits | 0 | 0 |
Net periodic benefit costs (income) | 3.7 | 3.8 |
Other postretirement benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | 0.3 | 0.4 |
Expected return on plan assets | 0 | 0 |
Amortization of prior service credits | (0.6) | (0.5) |
Net periodic benefit costs (income) | $ (0.3) | $ (0.1) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Numerator | ||
Income from continuing operations | $ 33.9 | $ 27 |
(Loss) income from discontinued operations, net of tax | (2) | 54.9 |
Net income | $ 31.9 | $ 81.9 |
Denominator | ||
Weighted-average common shares outstanding (shares) | 131.8 | 175.2 |
Effect of potentially dilutive securities (shares) | 0.9 | 1.1 |
Weighted average diluted shares outstanding (shares) | 132.7 | 176.3 |
Basic earnings (loss) per share | ||
Continuing operations, basic earnings per share (usd per share) | $ 0.26 | $ 0.16 |
Discontinued operations, basic earnings per share (usd per share) | (0.02) | 0.31 |
Basic earnings per share (usd per share) | 0.24 | 0.47 |
Diluted earnings (loss) per share | ||
Continuing operations, diluted earnings per share (usd per share) | 0.26 | 0.15 |
Discontinued operations, diluted earnings per share (usd per share) | (0.02) | 0.31 |
Diluted earnings per share (usd per share) | $ 0.24 | $ 0.46 |
Shares excluded from diluted earnings per share calculation due to anti-dilutive effect (shares) | 0.2 | 0.2 |
Supplemental Financial Inform_3
Supplemental Financial Information - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Cash and cash equivalents - continuing operations | $ 420.7 | $ 409.1 | $ 21 | |
Total cash, cash equivalents and restricted cash | 420.7 | 413.1 | 93 | $ 83.9 |
Discontinued Operations, Held-for-sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Cash and cash equivalents - disposal group | 0 | 4 | 0 | |
Restricted cash - discontinued operations | 0 | 0 | 1.5 | |
Discontinued Operations, Disposed of by Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Cash and cash equivalents - disposal group | $ 0 | $ 0 | $ 70.5 |
Supplemental Financial Inform_4
Supplemental Financial Information - Summary of Accounts Receivable (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Sep. 30, 2023 |
Current | ||
Trade | $ 65.9 | $ 64 |
Other | 18.1 | 17.9 |
Receivables, gross | 84 | 81.9 |
Allowance for credit losses | (0.5) | (0.6) |
Receivables, net | 83.5 | 81.3 |
Non-current | ||
Notes receivable | 2.4 | 2.3 |
Other | 7.6 | 7.5 |
Noncurrent notes receivable, gross | 10 | 9.8 |
Allowance for losses | (2.4) | (2.4) |
Noncurrent notes receivable, net | $ 7.6 | $ 7.4 |
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, 2023 | Dec. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Net revenues | $ 373.4 | $ 332.8 |
Suspended Operations | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | (0.2) | |
Oil Change And Related Fees | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 277.5 | 247.2 |
Non-oil Change And Related Fees | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 78.2 | 69.8 |
Franchise Fees And Other | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 17.7 | 15.8 |
Net revenues transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 355.9 | 317.2 |
Franchised revenues transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | $ 17.5 | $ 15.6 |