Valvoline (VVV) 10-Q 7 Aug 24 2024 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Jun. 30, 2024	Aug. 02, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
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		128,866,347
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
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		9 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Net Income (Loss) Attributable to Parent [Abstract]
Net revenues	$ 421.4	$ 376.2	$ 1,183.5	$ 1,053.5
Cost of sales	253.9	225.5	735	657.3
Gross profit	167.5	150.7	448.5	396.2
Selling, general and administrative expenses	77.2	65.6	224	194.2
Net legacy and separation-related expenses	0.1	1.6	0.2	30.8
Other income, net	(3.2)	(3)	(8.3)	(5.8)
Operating income	93.4	86.5	232.6	177
Net pension and other postretirement plan expenses	3.4	3.7	10.4	11
Net interest and other financing expenses (income)	24.8	(4.6)	53.9	27.4
Income before income taxes	65.2	87.4	168.3	138.6
Income tax expense	17	22.9	42.9	14.2
Income from continuing operations	48.2	64.5	125.4	124.4
(Loss) income from discontinued operations, net of tax	(2.3)	(2.9)	(6.2)	1,246.4
Net income	$ 45.9	$ 61.6	$ 119.2	$ 1,370.8
NET EARNINGS PER SHARE
Continuing operations, basic earnings (loss) per share (usd per share)	$ 0.37	$ 0.40	$ 0.96	$ 0.74
Discontinued operations, basic earnings (loss) per share (usd per share)	(0.02)	(0.02)	(0.05)	7.35
Basic earnings per share (usd per share)	0.35	0.38	0.91	8.09
Continuing operations, diluted earnings (loss) per share (usd per share)	0.37	0.40	0.96	0.73
Discontinued operations, diluted earnings (loss) per share (usd per share)	(0.02)	(0.02)	(0.05)	7.31
Diluted earnings per share (usd per share)	$ 0.35	$ 0.38	$ 0.91	$ 8.04
Weighted average common shares outstanding
Basic (in shares)	129.4	161.5	130.3	169.5
Diluted (in shares)	130.2	162.5	131.2	170.6
COMPREHENSIVE INCOME
Net income	$ 45.9	$ 61.6	$ 119.2	$ 1,370.8
Other comprehensive (loss) income, net of tax
Currency translation adjustments	(1.2)	1	2.9	45.5
Amortization of pension and other postretirement plan prior service credits	(0.4)	(0.4)	(1.3)	(1.3)
Unrealized loss on cash flow hedges	(1.5)	(1.5)	(4.8)	(5.9)
Other comprehensive (loss) income	(3.1)	(0.9)	(3.2)	38.3
Comprehensive income	$ 42.8	$ 60.7	$ 116	$ 1,409.1

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Jun. 30, 2024	Sep. 30, 2023
Current assets
Cash and cash equivalents	$ 65.7	$ 409.1
Receivables, net	97.5	81.3
Inventories, net	40.2	33.3
Prepaid expenses and other current assets	53	65.5
Short-term investments	0	347.5
Total current assets	256.4	936.7
Noncurrent assets
Property, plant and equipment, net	927.2	818.3
Operating lease assets	289.3	266.5
Goodwill and intangibles, net	693.7	680.6
Other noncurrent assets	209	187.8
Total noncurrent assets	2,119.2	1,953.2
Total assets	2,375.6	2,889.9
Current liabilities
Current portion of long-term debt	23.8	23.8
Trade and other payables	107.7	118.7
Accrued expenses and other liabilities	219.9	215.9
Current liabilities held for sale	0	3.9
Total current liabilities	351.4	362.3
Noncurrent liabilities
Long-term debt	1,125.7	1,562.3
Employee benefit obligations	167.8	168
Operating lease liabilities	270.3	247.3
Other noncurrent liabilities	353.9	346.8
Total noncurrent liabilities	1,917.7	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; 128.9 and 134.8 shares issued and outstanding at June 30, 2024 and September 30, 2023, respectively	1.3	1.3
Paid-in capital	48.9	48
Retained earnings	46.3	140.7
Accumulated other comprehensive income	10	13.2
Total stockholders’ equity	106.5	203.2
Total liabilities and stockholders’ equity	$ 2,375.6	$ 2,889.9

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2024	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)	128,900,000	134,800,000
Common stock outstanding (shares)	128,900,000	134,800,000

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash flows from operating activities
Net income	$ 119.2	$ 1,370.8
Adjustments to reconcile net income to cash flows from operating activities:
Loss (income) from discontinued operations	6.2	(1,246.4)
Loss on extinguishment of debt	5.1	0
Depreciation and amortization	77.1	60.7
Deferred income taxes	0	(26.6)
Stock-based compensation expense	9.4	8.8
Other, net	1.6	2.1
Change in operating assets and liabilities
Receivables	(14.5)	(3.5)
Inventories	(8)	(3.3)
Payables and accrued liabilities	(7.6)	76.4
Other assets and liabilities	(18.5)	10.9
Operating cash flows from continuing operations	170	249.9
Operating cash flows from discontinued operations	(6.2)	(298.3)
Total cash provided by (used in) operating activities	163.8	(48.4)
Cash flows from investing activities
Additions to property, plant and equipment	(153)	(125.9)
Acquisitions of businesses	(27.9)	(27.8)
Proceeds from (purchases of) investments, net	348	(440.4)
Other investing activities, net	(5.7)	(0.8)
Investing cash flows from continuing operations	161.4	(594.9)
Investing cash flows from discontinued operations	0	2,621
Total cash provided by investing activities	161.4	2,026.1
Cash flows from financing activities
Proceeds from borrowings	200	920.9
Repayments on borrowings	(642.8)	(915)
Repurchases of common stock	(212.2)	(1,395.5)
Cash dividends paid	0	(21.8)
Other financing activities	(17.4)	(16)
Financing cash flows from continuing operations	(672.4)	(1,427.4)
Financing cash flows from discontinued operations	0	(108.1)
Total cash used in financing activities	(672.4)	(1,535.5)
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash	0.1	0.6
(Decrease) increase in cash, cash equivalents and restricted cash	(347.1)	442.8
Cash, cash equivalents, and restricted cash - beginning of period	413.1	83.9
Cash, cash equivalents, and restricted cash - end of period	$ 66	$ 526.7

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Equity - 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, 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	1,370.8
Other comprehensive income, net of tax	38.3
Common stock outstanding, at end of period (shares) at Jun. 30, 2023		138.7
Balance at end of period at Jun. 30, 2023	285.4	$ 1.4	44.8	222.2	17
Common stock outstanding, at beginning of period (shares) at Dec. 31, 2022		173.5
Balance at beginning of period at Dec. 31, 2022	289.3	$ 1.7	40.8	254.6	(7.8)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	1,227.3			1,227.3
Stock-based compensation, net of issuances (in shares)		0.1
Stock-based compensation, net of issuances	1.8		1.8
Repurchases of common stock (shares)		(4.9)
Repurchases of common stock	(171.7)			(171.7)
Other comprehensive income, net of tax	25.7				25.7
Common stock outstanding, at end of period (shares) at Mar. 31, 2023		168.7
Balance at end of period at Mar. 31, 2023	1,372.4	$ 1.7	42.6	1,310.2	17.9
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	61.6			61.6
Stock-based compensation, net of issuances (in shares)		0.1
Stock-based compensation, net of issuances	2.2		2.2
Repurchases of common stock (shares)		(30.1)
Repurchases of common stock	(1,149.9)	$ (0.3)		(1,149.6)
Other comprehensive income, net of tax	(0.9)				(0.9)
Common stock outstanding, at end of period (shares) at Jun. 30, 2023		138.7
Balance at end of period at Jun. 30, 2023	$ 285.4	$ 1.4	44.8	222.2	17
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)			(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
Balance at end of period at Dec. 31, 2023	$ 64.8	$ 1.3	46.3	(0.2)	17.4
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	119.2
Other comprehensive income, net of tax	$ (3.2)
Common stock outstanding, at end of period (shares) at Jun. 30, 2024	128.9	128.9
Balance at end of period at Jun. 30, 2024	$ 106.5	$ 1.3	48.9	46.3	10
Common stock outstanding, at beginning of period (shares) at Dec. 31, 2023		129.6
Balance at beginning of period at Dec. 31, 2023	64.8	$ 1.3	46.3	(0.2)	17.4
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	41.4			41.4
Stock-based compensation, net of issuances (in shares)		0.2
Stock-based compensation, net of issuances	(1)		(1)
Repurchases of common stock (shares)		(1)
Repurchases of common stock	(40.8)			(40.8)
Other comprehensive income, net of tax	(4.3)				(4.3)
Common stock outstanding, at end of period (shares) at Mar. 31, 2024		128.8
Balance at end of period at Mar. 31, 2024	60.1	$ 1.3	45.3	0.4	13.1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	45.9			45.9
Stock-based compensation, net of issuances (in shares)		0.1
Stock-based compensation, net of issuances	3.6		3.6
Other comprehensive income, net of tax	$ (3.1)				(3.1)
Common stock outstanding, at end of period (shares) at Jun. 30, 2024	128.9	128.9
Balance at end of period at Jun. 30, 2024	$ 106.5	$ 1.3	$ 48.9	$ 46.3	$ 10

Condensed Consolidated Statem_4

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

Basis of Presentation and Signi

Basis of Presentation and Significant Accounting Policies	9 Months Ended
	Jun. 30, 2024
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. (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	9 Months Ended
	Jun. 30, 2024
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 Nine months ended (In millions) 2024 2023 2024 2023 Net revenues $ — $ — $ — $ 1,174.4 Cost of sales — — — 924.2 Gross profit — — — 250.2 Selling, general and administrative expenses — — — 125.0 Net legacy and separation-related expenses 4.3 5.6 9.2 26.2 Equity and other income, net — — — (14.2) Operating (loss) income from discontinued operations (4.3) (5.6) (9.2) 113.2 Net pension and other postretirement plan expense — — — 0.1 Net interest and other financing (income) expenses — (0.7) — 4.3 Gain on sale of discontinued operations (a) — (0.8) — (1,571.6) (Loss) income before income taxes - discontinued operations (4.3) (4.1) (9.2) 1,680.4 Income tax (benefit) expense (b) (2.0) (1.2) (3.0) 434.0 (Loss) income from discontinued operations, net of tax $ (2.3) $ (2.9) $ (6.2) $ 1,246.4 (a) The gain on sale recorded in the nine months ended June 30, 2023 includes the release of Accumulated other comprehensive income of $30.7 million associated with the realization of cumulative translation losses attributed to the Global Products business. (b) During the three and nine months ended June 30, 2024 Valvoline recognized an adjustment to reduce the tax on the gain on sale of $0.9 million. The prior year periods include $0.2 million and $420.4 million of expense for the three and nine months ended June 30, 2023, respectively. The total tax expense on the gain on sale recognized to-date is $423.4 million. 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. These transactions totaled $89.7 million for the nine months ended June 30, 2023 . Valvoline also entered into a Transition Services Agreement with Global Products, effective March 1, 2023, to provide and receive services including information technology (“IT”), legal, finance, and human resources support. Transition services have lapsed periodically as business process transitions have occurred since the sale, and remaining services are generally expected to conclude within 18 months post-closing with limited IT transition services that may extend through early calendar year 2025. The income and costs associated with these services were not material during the three and nine months ended June 30, 2024.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Jun. 30, 2024
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 June 30, 2024 (In millions) Total Level 1 Level 2 Level 3 NAV (a) Cash and cash equivalents Money market funds $ 0.3 $ 0.3 $ — $ — $ — Time deposits 2.4 — 2.4 — — Prepaid expenses and other current assets Interest rate swap agreements 1.2 — 1.2 — — Other noncurrent assets Non-qualified trust funds 1.1 — — — 1.1 Deferred compensation investments 21.9 21.9 — — — Total assets at fair value $ 26.9 $ 22.2 $ 3.6 $ — $ 1.1 Other noncurrent liabilities Deferred compensation obligations $ 21.1 $ — $ — $ — $ 21.1 Total liabilities at fair value $ 21.1 $ — $ — $ — $ 21.1 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 were determined utilizing quoted prices for identical securities from less active markets, which are considered Level 2 inputs within the fair value hierarchy. The U.S. treasury securities were fully matured as of March 31, 2024. September 30, 2023 (In millions) 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) $ 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. 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. June 30, 2024 September 30, 2023 (In millions) Fair value Carrying value (a) Unamortized Fair value Carrying value (a) Unamortized 2030 Notes (b) $ — $ — $ — $ 589.8 $ 594.5 $ (5.5) 2031 Notes 461.5 535.0 (4.7) 416.6 529.9 (5.2) Total $ 461.5 $ 535.0 $ (4.7) $ 1,006.4 $ 1,124.4 $ (10.7) (a) Carrying values shown are net of unamortized discounts and debt issuance costs. (b) The Company completed a tender offer to purchase the outstanding 2030 Notes in April 2024 as further described in Note 5. 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	9 Months Ended
	Jun. 30, 2024
Business Combinations [Abstract]
Business Combinations	BUSINESS COMBINATIONS The Company acquired 21 service center stores in single and multi-store transactions for an aggregate purchase price of $28.2 million during the nine months ended June 30, 2024. 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 1,961 system-wide service center stores. 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 nine months ended June 30: (In millions) 2024 2023 Inventories $ — $ 0.4 Property, plant and equipment (a) 4.8 5.9 Operating lease assets 8.6 6.1 Goodwill (b) 26.3 21.1 Intangible assets (c) Reacquired franchise rights (d) — 4.0 Other 0.2 0.2 Other current liabilities (a) (0.1) (0.6) Operating lease liabilities (8.6) (5.7) Other noncurrent liabilities (a) (3.0) (3.6) Total net assets acquired $ 28.2 $ 27.8 Non-cash consideration (0.3) — Total cash consideration transferred $ 27.9 $ 27.8 (a) Includes finance lease assets in property, plant and equipment and finance lease liabilities in other current and noncurrent liabilities. During the nine months ended June 30, 2024, 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 nine months ended June 30, 2024 and 2023 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 nine 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	9 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
Debt	DEBT The following table summarizes Valvoline’s total debt as of: (In millions) June 30 September 30 2023 2031 Notes $ 535.0 $ 535.0 2030 Notes — 600.0 Term Loan 445.3 463.1 Revolver (a) 175.0 — Debt issuance costs and discounts (5.8) (12.0) Total debt 1,149.5 1,586.1 Current portion of long-term debt 23.8 23.8 Long-term debt $ 1,125.7 $ 1,562.3 (a) As of June 30, 2024, the total borrowing capacity remaining under the $475.0 million revolving credit facility was $296.8 million due to a reduction of $175.0 million from borrowings and $3.2 million for letters of credit outstanding. 2030 Notes On April 16, 2024, Valvoline completed a tender offer (the “Debt Tender Offer”) to purchase its outstanding 4.250% senior unsecured notes due 2030 with an aggregate principal amount of $600.0 million (the “2030 Notes”). The Debt Tender Offer was made to comply with the requirements of the asset sale covenant under the indenture governing the 2030 Notes in connection with the sale of Global Products and Valvoline’s use of the related net proceeds. The Company used cash and cash equivalents on hand, in addition to borrowing $175.0 million on the Revolver to facilitate the $598.3 million, or 99.7% of the outstanding principal amount, purchase of the 2030 Notes at par, plus accrued and unpaid interest, and cancelled the 2030 Notes accepted for purchase. The Company elected to redeem the remaining balance outstanding of $1.7 million on April 29, 2024 pursuant to the terms and conditions of the indenture governing the 2030 Notes. During the three and nine months ended June 30, 2024, Valvoline recognized a loss on extinguishment of $5.1 million on the 2030 Notes due to the write-off of unamortized debt issuance costs and discounts. As of June 30, 2024, Valvoline was in compliance with all covenants under its long-term borrowings.

Income Taxes

Income Taxes	9 Months Ended
	Jun. 30, 2024
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 Nine months ended (In millions) 2024 2023 2024 2023 Income tax expense $ 17.0 $ 22.9 $ 42.9 $ 14.2 Effective tax rate percentage 26.1 % 26.2 % 25.5 % 10.2 %

Employee Benefit Plans

Employee Benefit Plans	9 Months Ended
	Jun. 30, 2024
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) 2024 2023 2024 2023 Three months ended June 30 Interest cost $ 20.7 $ 20.6 $ 0.3 $ 0.4 Expected return on plan assets (17.2) (16.8) — — Amortization of prior service credits 0.1 0.1 (0.5) (0.6) Net periodic benefit costs (income) $ 3.6 $ 3.9 $ (0.2) $ (0.2) Nine months ended June 30 Interest cost $ 62.5 $ 61.8 $ 0.9 $ 1.2 Expected return on plan assets (51.5) (50.4) — — Amortization of prior service credit 0.1 0.1 (1.6) (1.7) Net periodic benefit costs (income) $ 11.1 $ 11.5 $ (0.7) $ (0.5)

Litigation, Claims and Continge

Litigation, Claims and Contingencies	9 Months Ended
	Jun. 30, 2024
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	9 Months Ended
	Jun. 30, 2024
Earnings Per Share [Abstract]
Earnings Per Share	EARNINGS PER SHARE The following table summarizes basic and diluted earnings per share: Three months ended Nine months ended (In millions, except per share amounts) 2024 2023 2024 2023 Numerator Income from continuing operations $ 48.2 $ 64.5 $ 125.4 $ 124.4 (Loss) income from discontinued operations, net of tax (2.3) (2.9) (6.2) 1,246.4 Net income $ 45.9 $ 61.6 $ 119.2 $ 1,370.8 Denominator Weighted average common shares outstanding 129.4 161.5 130.3 169.5 Effect of potentially dilutive securities (a) 0.8 1.0 0.9 1.1 Weighted average diluted shares outstanding 130.2 162.5 131.2 170.6 Basic earnings (loss) per share Continuing operations $ 0.37 $ 0.40 $ 0.96 $ 0.74 Discontinued operations (0.02) (0.02) (0.05) 7.35 Basic earnings per share $ 0.35 $ 0.38 $ 0.91 $ 8.09 Diluted earnings (loss) per share Continuing operations $ 0.37 $ 0.40 $ 0.96 $ 0.73 Discontinued operations (0.02) (0.02) (0.05) 7.31 Diluted earnings per share $ 0.35 $ 0.38 $ 0.91 $ 8.04 (a) There were 0.1 million

Supplemental Financial Informat

Supplemental Financial Information	9 Months Ended
	Jun. 30, 2024
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) June 30 September 30 June 30 Cash and cash equivalents - continuing operations $ 65.7 $ 409.1 $ 526.7 Cash and cash equivalents - held for sale (a) — 4.0 — Restricted cash - continuing operations (b) 0.3 — — Total cash, cash equivalents and restricted cash $ 66.0 $ 413.1 $ 526.7 (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. (b) Included in Prepaid expenses and other current assets within the Condensed Consolidated Balance Sheets. Accounts and other receivables The following summarizes Valvoline’s accounts and other receivables in the Condensed Consolidated Balance Sheets as of: (In millions) June 30 September 30 2023 Current Trade $ 85.4 $ 64.0 Notes receivable from franchisees 3.7 1.6 Other 8.9 16.3 Receivables, gross 98.0 81.9 Allowance for credit losses (0.5) (0.6) Receivables, net $ 97.5 $ 81.3 Non-current (a) Notes receivable $ 2.4 $ 2.3 Other 7.1 7.5 Noncurrent notes receivable, gross 9.5 9.8 Allowance for losses (2.5) (2.4) Noncurrent notes receivable, net $ 7.0 $ 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 Nine months ended (In millions) 2024 2023 2024 2023 Net revenues transferred at a point in time $ 401.7 $ 358.3 $ 1,127.7 $ 1,003.4 Franchised revenues transferred over time 19.7 17.9 55.8 50.1 Net revenues $ 421.4 $ 376.2 $ 1,183.5 $ 1,053.5 The following table summarizes net revenues by category: Three months ended Nine months ended (In millions) 2024 2023 2024 2023 Oil changes and related fees $ 307.9 $ 280.7 $ 868.6 $ 782.8 Non-oil changes and related fees 93.6 77.2 258.6 219.9 Franchise fees and other (a) 19.9 18.3 56.3 50.8 Total $ 421.4 $ 376.2 $ 1,183.5 $ 1,053.5 (a) Includes $0.2 million of net revenues associated with suspended operations for the nine months ended June 30, 2023.

Subsequent Events

Subsequent Events	9 Months Ended
	Jun. 30, 2024
Subsequent Events [Abstract]
Subsequent Events	SUBSEQUENT EVENTS Disposition During July 2024, the Company entered into an agreement and completed the sale of 17 company-owned service center stores to a franchisee. The Company will derecognize the related net assets and expects to recognize a gain on sale in the fourth quarter of fiscal 2024 to reflect the completion of this transaction. Acquisitions From July 1, 2024 through August 7, 2024, Valvoline acquired 12 service center stores for an aggregate purchase price of $18.7 million. These transactions included five former franchise service center stores in Texas acquired from TL2 Services, LLC on July 31, 2024 and seven service center stores in a multi-store transaction. These acquisitions provide an opportunity to expand Valvoline’s store locations in key markets and contribute to company-owned service center store growth. Share repurchase authorization During July 2024, Valvoline’s Board of Directors (the “Board”) approved a share repurchase authorization of $400.0 million, which has no expiration date (the “2024 Share Repurchase Authorization”). The timing and amount of any repurchases of common stock will be solely at the discretion of the Company and is subject to general business and market conditions, as well as other factors. The Board approved the 2024 Share Repurchase Authorization as part of the Company’s broader capital allocation framework to deliver value to shareholders.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended						9 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Dec. 31, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure
Net income	$ 45.9	$ 41.4	$ 31.9	$ 61.6	$ 1,227.3	$ 81.9	$ 119.2	$ 1,370.8

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2024
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)	9 Months Ended
	Jun. 30, 2024
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. (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)	9 Months Ended
	Jun. 30, 2024
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 Nine months ended (In millions) 2024 2023 2024 2023 Net revenues $ — $ — $ — $ 1,174.4 Cost of sales — — — 924.2 Gross profit — — — 250.2 Selling, general and administrative expenses — — — 125.0 Net legacy and separation-related expenses 4.3 5.6 9.2 26.2 Equity and other income, net — — — (14.2) Operating (loss) income from discontinued operations (4.3) (5.6) (9.2) 113.2 Net pension and other postretirement plan expense — — — 0.1 Net interest and other financing (income) expenses — (0.7) — 4.3 Gain on sale of discontinued operations (a) — (0.8) — (1,571.6) (Loss) income before income taxes - discontinued operations (4.3) (4.1) (9.2) 1,680.4 Income tax (benefit) expense (b) (2.0) (1.2) (3.0) 434.0 (Loss) income from discontinued operations, net of tax $ (2.3) $ (2.9) $ (6.2) $ 1,246.4 (a) The gain on sale recorded in the nine months ended June 30, 2023 includes the release of Accumulated other comprehensive income of $30.7 million associated with the realization of cumulative translation losses attributed to the Global Products business. (b)

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Jun. 30, 2024
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 June 30, 2024 (In millions) Total Level 1 Level 2 Level 3 NAV (a) Cash and cash equivalents Money market funds $ 0.3 $ 0.3 $ — $ — $ — Time deposits 2.4 — 2.4 — — Prepaid expenses and other current assets Interest rate swap agreements 1.2 — 1.2 — — Other noncurrent assets Non-qualified trust funds 1.1 — — — 1.1 Deferred compensation investments 21.9 21.9 — — — Total assets at fair value $ 26.9 $ 22.2 $ 3.6 $ — $ 1.1 Other noncurrent liabilities Deferred compensation obligations $ 21.1 $ — $ — $ — $ 21.1 Total liabilities at fair value $ 21.1 $ — $ — $ — $ 21.1 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 were determined utilizing quoted prices for identical securities from less active markets, which are considered Level 2 inputs within the fair value hierarchy. The U.S. treasury securities were fully matured as of March 31, 2024. September 30, 2023 (In millions) 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) $ 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. June 30, 2024 September 30, 2023 (In millions) Fair value Carrying value (a) Unamortized Fair value Carrying value (a) Unamortized 2030 Notes (b) $ — $ — $ — $ 589.8 $ 594.5 $ (5.5) 2031 Notes 461.5 535.0 (4.7) 416.6 529.9 (5.2) Total $ 461.5 $ 535.0 $ (4.7) $ 1,006.4 $ 1,124.4 $ (10.7) (a) Carrying values shown are net of unamortized discounts and debt issuance costs. (b) The Company completed a tender offer to purchase the outstanding 2030 Notes in April 2024 as further described in Note 5.

Business Combinations (Tables)

Business Combinations (Tables)	9 Months Ended
	Jun. 30, 2024
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 nine months ended June 30: (In millions) 2024 2023 Inventories $ — $ 0.4 Property, plant and equipment (a) 4.8 5.9 Operating lease assets 8.6 6.1 Goodwill (b) 26.3 21.1 Intangible assets (c) Reacquired franchise rights (d) — 4.0 Other 0.2 0.2 Other current liabilities (a) (0.1) (0.6) Operating lease liabilities (8.6) (5.7) Other noncurrent liabilities (a) (3.0) (3.6) Total net assets acquired $ 28.2 $ 27.8 Non-cash consideration (0.3) — Total cash consideration transferred $ 27.9 $ 27.8 (a) Includes finance lease assets in property, plant and equipment and finance lease liabilities in other current and noncurrent liabilities. During the nine months ended June 30, 2024, 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 nine months ended June 30, 2024 and 2023 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 nine 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)	9 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
Schedule of Total Debt	The following table summarizes Valvoline’s total debt as of: (In millions) June 30 September 30 2023 2031 Notes $ 535.0 $ 535.0 2030 Notes — 600.0 Term Loan 445.3 463.1 Revolver (a) 175.0 — Debt issuance costs and discounts (5.8) (12.0) Total debt 1,149.5 1,586.1 Current portion of long-term debt 23.8 23.8 Long-term debt $ 1,125.7 $ 1,562.3 (a) As of June 30, 2024, the total borrowing capacity remaining under the $475.0 million revolving credit facility was $296.8 million due to a reduction of $175.0 million from borrowings and $3.2 million for letters of credit outstanding.

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Jun. 30, 2024
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 Nine months ended (In millions) 2024 2023 2024 2023 Income tax expense $ 17.0 $ 22.9 $ 42.9 $ 14.2 Effective tax rate percentage 26.1 % 26.2 % 25.5 % 10.2 %

Employee Benefit Plans (Tables)

Employee Benefit Plans (Tables)	9 Months Ended
	Jun. 30, 2024
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) 2024 2023 2024 2023 Three months ended June 30 Interest cost $ 20.7 $ 20.6 $ 0.3 $ 0.4 Expected return on plan assets (17.2) (16.8) — — Amortization of prior service credits 0.1 0.1 (0.5) (0.6) Net periodic benefit costs (income) $ 3.6 $ 3.9 $ (0.2) $ (0.2) Nine months ended June 30 Interest cost $ 62.5 $ 61.8 $ 0.9 $ 1.2 Expected return on plan assets (51.5) (50.4) — — Amortization of prior service credit 0.1 0.1 (1.6) (1.7) Net periodic benefit costs (income) $ 11.1 $ 11.5 $ (0.7) $ (0.5)

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Jun. 30, 2024
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 Nine months ended (In millions, except per share amounts) 2024 2023 2024 2023 Numerator Income from continuing operations $ 48.2 $ 64.5 $ 125.4 $ 124.4 (Loss) income from discontinued operations, net of tax (2.3) (2.9) (6.2) 1,246.4 Net income $ 45.9 $ 61.6 $ 119.2 $ 1,370.8 Denominator Weighted average common shares outstanding 129.4 161.5 130.3 169.5 Effect of potentially dilutive securities (a) 0.8 1.0 0.9 1.1 Weighted average diluted shares outstanding 130.2 162.5 131.2 170.6 Basic earnings (loss) per share Continuing operations $ 0.37 $ 0.40 $ 0.96 $ 0.74 Discontinued operations (0.02) (0.02) (0.05) 7.35 Basic earnings per share $ 0.35 $ 0.38 $ 0.91 $ 8.09 Diluted earnings (loss) per share Continuing operations $ 0.37 $ 0.40 $ 0.96 $ 0.73 Discontinued operations (0.02) (0.02) (0.05) 7.31 Diluted earnings per share $ 0.35 $ 0.38 $ 0.91 $ 8.04 (a) There were 0.1 million

Supplemental Financial Inform_2

Supplemental Financial Information (Tables)	9 Months Ended
	Jun. 30, 2024
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) June 30 September 30 June 30 Cash and cash equivalents - continuing operations $ 65.7 $ 409.1 $ 526.7 Cash and cash equivalents - held for sale (a) — 4.0 — Restricted cash - continuing operations (b) 0.3 — — Total cash, cash equivalents and restricted cash $ 66.0 $ 413.1 $ 526.7 (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. (b) Included in Prepaid expenses and other current assets within 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) June 30 September 30 2023 Current Trade $ 85.4 $ 64.0 Notes receivable from franchisees 3.7 1.6 Other 8.9 16.3 Receivables, gross 98.0 81.9 Allowance for credit losses (0.5) (0.6) Receivables, net $ 97.5 $ 81.3 Non-current (a) Notes receivable $ 2.4 $ 2.3 Other 7.1 7.5 Noncurrent notes receivable, gross 9.5 9.8 Allowance for losses (2.5) (2.4) Noncurrent notes receivable, net $ 7.0 $ 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	The following disaggregates the Company’s net revenues by timing of revenue recognized: Three months ended Nine months ended (In millions) 2024 2023 2024 2023 Net revenues transferred at a point in time $ 401.7 $ 358.3 $ 1,127.7 $ 1,003.4 Franchised revenues transferred over time 19.7 17.9 55.8 50.1 Net revenues $ 421.4 $ 376.2 $ 1,183.5 $ 1,053.5 The following table summarizes net revenues by category: Three months ended Nine months ended (In millions) 2024 2023 2024 2023 Oil changes and related fees $ 307.9 $ 280.7 $ 868.6 $ 782.8 Non-oil changes and related fees 93.6 77.2 258.6 219.9 Franchise fees and other (a) 19.9 18.3 56.3 50.8 Total $ 421.4 $ 376.2 $ 1,183.5 $ 1,053.5 (a) Includes $0.2 million of net revenues associated with suspended operations for the nine months ended June 30, 2023.

Discontinued Operations - Narra

Discontinued Operations - Narrative (Details) - Discontinued Operations, Held-for-sale - USD ($) $ in Millions		3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 01, 2023	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Sep. 30, 2023
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on sale of discontinued operations		$ 0	$ 0.8	$ 0	$ 1,571.6
Net revenues		$ 0	$ 0	$ 0	1,174.4
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						$ 1,572
Net revenues					$ 89.7

Discontinued Operations - Conso

Discontinued Operations - Consolidated Statements of Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		16 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income tax expense	$ 17	$ 22.9	$ 42.9	$ 14.2
(Loss) income from discontinued operations, net of tax	(2.3)	(2.9)	(6.2)	1,246.4
Discontinued Operations, Held-for-sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net revenues	0	0	0	1,174.4
Cost of sales	0	0	0	924.2
Gross profit	0	0	0	250.2
Selling, general and administrative expenses	0	0	0	125
Net legacy and separation-related expenses	4.3	5.6	9.2	26.2
Equity and other income, net	0	0	0	(14.2)
Operating (loss) income from discontinued operations	(4.3)	(5.6)	(9.2)	113.2
Net pension and other postretirement plan expense	0	0	0	0.1
Net interest and other financing (income) expenses	0	(0.7)	0	4.3
Gain on sale of discontinued operations (a)	0	(0.8)	0	(1,571.6)
(Loss) income before income taxes - discontinued operations	(4.3)	(4.1)	(9.2)	1,680.4
Income tax expense	(2)	(1.2)	(3)	434
(Loss) income from discontinued operations, net of tax	(2.3)	(2.9)	(6.2)	1,246.4
Currency translation adjustment loss				30.7
Tax impact on gain on sale of discontinued operations	$ (0.9)	$ 0.2	$ (0.9)	$ 420.4	$ 423.4

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Assets and Liabilities at Fair Value (Details) - USD ($) $ in Millions	Jun. 30, 2024	Sep. 30, 2023
Foreign Exchange Contract | Not Designated as Hedging Instrument
Other noncurrent liabilities
Derivative, notional amount		$ 29.7
Fair Value, Measurements, Recurring
Other noncurrent assets
Non-qualified trust funds	$ 1.1	2.1
Deferred compensation investments	21.9	19
Total assets at fair value	26.9	306.9
Accrued expenses and other liabilities
Currency derivatives		0.1
Other noncurrent liabilities
Deferred compensation obligations	21.1	20.8
Total liabilities at fair value	21.1	20.9
Fair Value, Measurements, Recurring | Money market funds
Cash and cash equivalents
Cash and cash equivalents	0.3	0.6
Fair Value, Measurements, Recurring | Time deposits
Cash and cash equivalents
Cash and cash equivalents	2.4	277.3
Fair Value, Measurements, Recurring | Prepaid expenses and other current assets
Prepaid expenses and other current assets
Currency derivatives		0.1
Interest rate swap agreements	1.2	7.8
Fair Value, Measurements, Recurring | Level 1
Other noncurrent assets
Non-qualified trust funds	0	0
Deferred compensation investments	21.9	19
Total assets at fair value	22.2	19.6
Accrued expenses and other liabilities
Currency derivatives		0
Other noncurrent liabilities
Deferred compensation obligations	0	0
Total liabilities at fair value	0	0
Fair Value, Measurements, Recurring | Level 1 | Money market funds
Cash and cash equivalents
Cash and cash equivalents	0.3	0.6
Fair Value, Measurements, Recurring | Level 1 | Time deposits
Cash and cash equivalents
Cash and cash equivalents	0	0
Fair Value, Measurements, Recurring | Level 1 | Prepaid expenses and other current assets
Prepaid expenses and other current assets
Currency derivatives		0
Interest rate swap agreements	0	0
Fair Value, Measurements, Recurring | Level 2
Other noncurrent assets
Non-qualified trust funds	0	0
Deferred compensation investments	0	0
Total assets at fair value	3.6	285.2
Accrued expenses and other liabilities
Currency derivatives		0.1
Other noncurrent liabilities
Deferred compensation obligations	0	0
Total liabilities at fair value	0	0.1
Fair Value, Measurements, Recurring | Level 2 | Money market funds
Cash and cash equivalents
Cash and cash equivalents	0	0
Fair Value, Measurements, Recurring | Level 2 | Time deposits
Cash and cash equivalents
Cash and cash equivalents	2.4	277.3
Fair Value, Measurements, Recurring | Level 2 | Prepaid expenses and other current assets
Prepaid expenses and other current assets
Currency derivatives		0.1
Interest rate swap agreements	1.2	7.8
Fair Value, Measurements, Recurring | Level 3
Other noncurrent assets
Non-qualified trust funds	0	0
Deferred compensation investments	0	0
Total assets at fair value	0	0
Accrued expenses and other liabilities
Currency derivatives		0
Other noncurrent liabilities
Deferred compensation obligations	0	0
Total liabilities at fair value	0	0
Fair Value, Measurements, Recurring | Level 3 | Money market funds
Cash and cash equivalents
Cash and cash equivalents	0	0
Fair Value, Measurements, Recurring | Level 3 | Time deposits
Cash and cash equivalents
Cash and cash equivalents	0	0
Fair Value, Measurements, Recurring | Level 3 | Prepaid expenses and other current assets
Prepaid expenses and other current assets
Currency derivatives		0
Interest rate swap agreements	0	0
Fair Value, Measurements, Recurring | NAV
Other noncurrent assets
Non-qualified trust funds	1.1	2.1
Total assets at fair value	1.1	2.1
Other noncurrent liabilities
Deferred compensation obligations	21.1	20.8
Total liabilities at fair value	$ 21.1	$ 20.8

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value of Debt (Details) - USD ($) $ in Millions	Jun. 30, 2024	Sep. 30, 2023	Jun. 30, 2023
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	$ 65.7	$ 409.1	$ 526.7
Unamortized discounts and issuance costs	5.8	12
Level 2 | Fair value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	461.5	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	0	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	461.5	416.6
Level 2 | Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	535	1,124.4
Unamortized discounts and issuance costs	(4.7)	(10.7)
Level 2 | Carrying Value | Senior Notes | 2030 Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	0	594.5
Unamortized discounts and issuance costs	0	(5.5)
Level 2 | Carrying Value | Senior Notes | 2031 Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	535	529.9
Unamortized discounts and issuance costs	$ (4.7)	(5.2)
U.S. treasury securities | Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Amortized cost		347.5
Gross unrealized losses		(0.5)
Fair value		347
U.S. treasury securities | Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents		2.2
Cash and cash equivalents, fair value		$ 2.2

Business Combinations - Narrati

Business Combinations - Narrative (Details) $ in Millions	9 Months Ended
	Jun. 30, 2024 USD ($) stores service_center_store
Business Combinations [Abstract]
Number of service center stores acquired | service_center_store	21
Total cash consideration transferred | $	$ 28.2
Number of system-wide service center stores | stores	1,961

Business Combinations - Schedul

Business Combinations - Schedule of Aggregate Cash Consideration and Total Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions	9 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Business Acquisition [Line Items]
Inventories	$ 0	$ 0.4
Property, plant and equipment	4.8	5.9
Operating lease assets	8.6	6.1
Goodwill	26.3	21.1
Other current liabilities	(0.1)	(0.6)
Operating lease liabilities	(8.6)	(5.7)
Other noncurrent liabilities	(3)	(3.6)
Total net assets acquired	28.2	27.8
Non-cash consideration	(0.3)	0
Total cash consideration transferred	$ 27.9	$ 27.8
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Property, plant and equipment, net	Property, plant and equipment, net
Finance lease assets	$ 3.1	$ 3.8
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Other noncurrent liabilities	Other noncurrent liabilities
Finance lease liabilities, current	$ 0.1	$ 0.2
Finance lease liabilities, noncurrent	$ 3	$ 3.6
Weighted average amortization period	5 years	9 years
Reacquired franchise rights
Business Acquisition [Line Items]
Intangible assets	$ 0	$ 4
Weighted average amortization period		9 years
Gain (Loss) on Contract Termination		$ 0
Other
Business Acquisition [Line Items]
Intangible assets	$ 0.2	$ 0.2

Debt - Schedule of Short-Term B

Debt - Schedule of Short-Term Borrowings and Long Term Debt (Details) - USD ($)	Jun. 30, 2024	Sep. 30, 2023
Debt Instrument [Line Items]
Debt issuance costs and discounts	$ (5,800,000)	$ (12,000,000)
Total debt	1,149,500,000	1,586,100,000
Current portion of long-term debt	23,800,000	23,800,000
Long-term debt	1,125,700,000	1,562,300,000
Line of Credit | Revolver
Debt Instrument [Line Items]
Long-term debt	175,000,000	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	0	600,000,000
Term Loan | Line of Credit
Debt Instrument [Line Items]
Debt gross	445,300,000	$ 463,100,000
Term Loan | Line of Credit | Revolver
Debt Instrument [Line Items]
Debt gross	475,000,000
Total borrowing capacity remaining	296,800,000
Letters of credit outstanding	$ 3,200,000

Debt - Narrative (Details)

Debt - Narrative (Details) - USD ($)		3 Months Ended	9 Months Ended
	Apr. 16, 2024	Jun. 30, 2024	Jun. 30, 2024	Jun. 30, 2023	Apr. 29, 2024	Sep. 30, 2023
Debt Instrument [Line Items]
Loss on extinguishment of debt			$ 5,100,000	$ 0
Line of Credit | Revolver
Debt Instrument [Line Items]
Proceeds from long-term lines of credit	$ 175,000,000
2030 Notes
Debt Instrument [Line Items]
Debt instrument, repurchase amount	$ 598,300,000				$ 1,700,000
Loss on extinguishment of debt		$ 5,100,000	5,100,000
2030 Notes | Senior Notes
Debt Instrument [Line Items]
Interest rate	4.25%
Repurchase notes aggregate principal amount	$ 600,000,000
Percentage of principal amount redeemed	99.70%
Aggregate principal amount		$ 0	$ 0			$ 600,000,000

Income Taxes - Schedule of Inco

Income Taxes - Schedule of Income Tax Expense and Effective Tax Rate (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Income tax expense	$ 17	$ 22.9	$ 42.9	$ 14.2
Effective tax rate percentage	26.10%	26.20%	25.50%	10.20%

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - USD ($) $ in Millions	9 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
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		9 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Pension benefits
Defined Benefit Plan Disclosure [Line Items]
Interest cost	$ 20.7	$ 20.6	$ 62.5	$ 61.8
Expected return on plan assets	(17.2)	(16.8)	(51.5)	(50.4)
Amortization of prior service credits	0.1	0.1	0.1	0.1
Net periodic benefit costs (income)	3.6	3.9	11.1	11.5
Other postretirement benefits
Defined Benefit Plan Disclosure [Line Items]
Interest cost	0.3	0.4	0.9	1.2
Expected return on plan assets	0	0	0	0
Amortization of prior service credits	(0.5)	(0.6)	(1.6)	(1.7)
Net periodic benefit costs (income)	$ (0.2)	$ (0.2)	$ (0.7)	$ (0.5)

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended						9 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Dec. 31, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Jun. 30, 2024	Jun. 30, 2023
Numerator
Income from continuing operations	$ 48.2			$ 64.5			$ 125.4	$ 124.4
(Loss) income from discontinued operations, net of tax	(2.3)			(2.9)			(6.2)	1,246.4
Net income	$ 45.9	$ 41.4	$ 31.9	$ 61.6	$ 1,227.3	$ 81.9	$ 119.2	$ 1,370.8
Denominator
Weighted-average common shares outstanding (shares)	129.4			161.5			130.3	169.5
Effect of potentially dilutive securities (shares)	0.8			1			0.9	1.1
Weighted average diluted shares outstanding (shares)	130.2			162.5			131.2	170.6
Basic earnings (loss) per share
Continuing operations, basic earnings (loss) per share (usd per share)	$ 0.37			$ 0.40			$ 0.96	$ 0.74
Discontinued operations, basic earnings (loss) per share (usd per share)	(0.02)			(0.02)			(0.05)	7.35
Basic earnings per share (usd per share)	0.35			0.38			0.91	8.09
Diluted earnings (loss) per share
Continuing operations, diluted earnings (loss) per share (usd per share)	0.37			0.40			0.96	0.73
Discontinued operations, diluted earnings (loss) per share (usd per share)	(0.02)			(0.02)			(0.05)	7.31
Diluted earnings per share (usd per share)	$ 0.35			$ 0.38			$ 0.91	$ 8.04
Shares excluded from diluted earnings per share calculation due to anti-dilutive effect (shares)	0.1			0.1			0.1	0.2

Supplemental Financial Inform_3

Supplemental Financial Information - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions	Jun. 30, 2024	Sep. 30, 2023	Jun. 30, 2023	Sep. 30, 2022
Supplemental Financial Information [Abstract]
Cash and cash equivalents - continuing operations	$ 65.7	$ 409.1	$ 526.7
Cash and cash equivalents - held for sale	0	4	0
Restricted cash - continuing operations	0.3	0	0
Total cash, cash equivalents and restricted cash	$ 66	$ 413.1	$ 526.7	$ 83.9

Supplemental Financial Inform_4

Supplemental Financial Information - Summary of Accounts Receivable (Details) - USD ($) $ in Millions	Jun. 30, 2024	Sep. 30, 2023
Current
Trade	$ 85.4	$ 64
Notes receivable from franchisees	3.7	1.6
Other	8.9	16.3
Receivables, gross	98	81.9
Allowance for credit losses	(0.5)	(0.6)
Receivables, net	97.5	81.3
Non-current
Notes receivable	2.4	2.3
Other	7.1	7.5
Noncurrent notes receivable, gross	9.5	9.8
Allowance for losses	(2.5)	(2.4)
Noncurrent notes receivable, net	$ 7	$ 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		9 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Disaggregation of Revenue [Line Items]
Net revenues	$ 421.4	$ 376.2	$ 1,183.5	$ 1,053.5
Suspended Operations
Disaggregation of Revenue [Line Items]
Net revenues				0.2
Oil changes and related fees
Disaggregation of Revenue [Line Items]
Net revenues	307.9	280.7	868.6	782.8
Non-oil changes and related fees
Disaggregation of Revenue [Line Items]
Net revenues	93.6	77.2	258.6	219.9
Franchise fees and other
Disaggregation of Revenue [Line Items]
Net revenues	19.9	18.3	56.3	50.8
Net revenues transferred at a point in time
Disaggregation of Revenue [Line Items]
Net revenues	401.7	358.3	1,127.7	1,003.4
Franchised revenues transferred over time
Disaggregation of Revenue [Line Items]
Net revenues	$ 19.7	$ 17.9	$ 55.8	$ 50.1

Subsequent Events (Details)

Subsequent Events (Details) $ in Millions		1 Months Ended		9 Months Ended
	Jul. 31, 2024 USD ($) service_center_store	Aug. 07, 2024 USD ($) service_center_store	Jul. 31, 2024 USD ($) service_center_store	Jun. 30, 2024 USD ($) service_center_store
Subsequent Event [Line Items]
Number of service center stores acquired				21
Total cash consideration transferred | $				$ 28.2
Subsequent Event
Subsequent Event [Line Items]
Number of service center stores sold			17
Number of service center stores acquired		12
Number of service center stores acquired in multi-store transactions		7
Total cash consideration transferred | $		$ 18.7
Authorized shares for repurchase (up to) | $	$ 400		$ 400
Subsequent Event | TL2 Services, LLC
Subsequent Event [Line Items]
Number of service center stores acquired	5