Guarantor Financial Information (Tables)

6 Months Ended

Mar. 31, 2018

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Consolidating Statements of Comprehensive Income

Condensed Consolidating Statements of Comprehensive Income
For the three months ended March 31, 2018
(In millions)	Valvoline Inc. (Parent Issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Sales	$	—		$	441		$	142	$	(14	)	$	569
Cost of sales	—			275			101		(14		)	362
Gross profit	—			166			41		—			207
Selling, general and administrative expenses	3			85			23		—			111
Legacy and separation-related expenses, net	1			7			—		—			8
Equity and other (income) expenses	—			(14		)	2		—			(12		)
Operating (loss) income	(4		)	88			16		—			100
Net pension and other postretirement plan non-service income and remeasurement adjustments	—			(10		)	—		—			(10		)
Net interest and other financing expenses	13			2			1		—			16
(Loss) income before income taxes	(17		)	96			15		—			94
Income tax (benefit) expense	(4		)	28			3		—			27
Equity in net income of subsidiaries	(80		)	(12		)	—		92			—
Net income	$	67		$	80		$	12	$	(92	)	$	67
Total comprehensive income	$	68		$	80		$	15	$	(95	)	$	68

Condensed Consolidating Statements of Comprehensive Income
For the three months ended March 31, 2017
(In millions)	Valvoline Inc. (Parent Issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Sales	$	—		$	402		$	127	$	(15	)	$	514
Cost of sales	—			241			90		(15		)	316
Gross profit	—			161			37		—			198
Selling, general and administrative expenses	2			72			23		—			97
Legacy and separation-related expenses, net	—			6			—		—			6
Equity and other (income) expenses	—			(8		)	3		—			(5		)
Operating (loss) income	(2		)	91			11		—			100
Net pension and other postretirement plan non-service income and remeasurement adjustments	—			(17		)	—		—			(17		)
Net interest and other financing expenses	8			—			—		—			8
(Loss) income before income taxes	(10		)	108			11		—			109
Income tax (benefit) expense	(4		)	40			2		—			38
Equity in net income of subsidiaries	(77		)	(9		)	—		86			—
Net income	$	71		$	77		$	9	$	(86	)	$	71
Total comprehensive income	$	75		$	81		$	15	$	(96	)	$	75

Condensed Consolidating Statements of Comprehensive Income
For the six months ended March 31, 2018
(In millions)	Valvoline Inc. (Parent Issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Sales	$	—		$	863		$	276	$	(25	)	$	1,114
Cost of sales	—			538			199		(25		)	712
Gross profit	—			325			77		—			402
Selling, general and administrative expenses	7			166			45		—			218
Legacy and separation-related expenses, net	7			10			—		—			17
Equity and other (income) expenses	—			(26		)	5		—			(21		)
Operating (loss) income	(14		)	175			27		—			188
Net pension and other postretirement plan non-service income and remeasurement adjustments	—			(20		)	—		—			(20		)
Net interest and other financing expenses	25			3			2		—			30
(Loss) income before income taxes	(39		)	192			25		—			178
Income tax expense	17			98			6		—			121
Equity in net income of subsidiaries	(113		)	(19		)	—		132			—
Net income	$	57		$	113		$	19	$	(132	)	$	57
Total comprehensive income	$	57		$	113		$	22	$	(135	)	$	57

Condensed Consolidating Statements of Comprehensive Income
For the six months ended March 31, 2017
(In millions)	Valvoline Inc. (Parent Issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Sales	$	—		$	779		$	251	$	(27	)	$	1,003
Cost of sales	—			465			182		(27		)	620
Gross profit	—			314			69		—			383
Selling, general and administrative expenses	4			141			47		—			192
Legacy and separation-related expenses, net	—			12			—		—			12
Equity and other (income) expenses	—			(21		)	6		—			(15		)
Operating (loss) income	(4		)	182			16		—			194
Net pension and other postretirement plan non-service income and remeasurement adjustments	—			(43		)	—		—			(43		)
Net interest and other financing expenses	17			1			—		—			18
(Loss) income before income taxes	(21		)	224			16		—			219
Income tax (benefit) expense	(8		)	78			6		—			76
Equity in net income of subsidiaries	(156		)	(10		)	—		166			—
Net income	$	143		$	156		$	10	$	(166	)	$	143
Total comprehensive income	$	136		$	149		$	8	$	(157	)	$	136

Condensed Income Statement

Condensed Consolidating Statements of Comprehensive Income
For the three months ended March 31, 2018
(In millions)	Valvoline Inc. (Parent Issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Sales	$	—		$	441		$	142	$	(14	)	$	569
Cost of sales	—			275			101		(14		)	362
Gross profit	—			166			41		—			207
Selling, general and administrative expenses	3			85			23		—			111
Legacy and separation-related expenses, net	1			7			—		—			8
Equity and other (income) expenses	—			(14		)	2		—			(12		)
Operating (loss) income	(4		)	88			16		—			100
Net pension and other postretirement plan non-service income and remeasurement adjustments	—			(10		)	—		—			(10		)
Net interest and other financing expenses	13			2			1		—			16
(Loss) income before income taxes	(17		)	96			15		—			94
Income tax (benefit) expense	(4		)	28			3		—			27
Equity in net income of subsidiaries	(80		)	(12		)	—		92			—
Net income	$	67		$	80		$	12	$	(92	)	$	67
Total comprehensive income	$	68		$	80		$	15	$	(95	)	$	68

Condensed Consolidating Statements of Comprehensive Income
For the three months ended March 31, 2017
(In millions)	Valvoline Inc. (Parent Issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Sales	$	—		$	402		$	127	$	(15	)	$	514
Cost of sales	—			241			90		(15		)	316
Gross profit	—			161			37		—			198
Selling, general and administrative expenses	2			72			23		—			97
Legacy and separation-related expenses, net	—			6			—		—			6
Equity and other (income) expenses	—			(8		)	3		—			(5		)
Operating (loss) income	(2		)	91			11		—			100
Net pension and other postretirement plan non-service income and remeasurement adjustments	—			(17		)	—		—			(17		)
Net interest and other financing expenses	8			—			—		—			8
(Loss) income before income taxes	(10		)	108			11		—			109
Income tax (benefit) expense	(4		)	40			2		—			38
Equity in net income of subsidiaries	(77		)	(9		)	—		86			—
Net income	$	71		$	77		$	9	$	(86	)	$	71
Total comprehensive income	$	75		$	81		$	15	$	(96	)	$	75

Condensed Consolidating Statements of Comprehensive Income
For the six months ended March 31, 2018
(In millions)	Valvoline Inc. (Parent Issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Sales	$	—		$	863		$	276	$	(25	)	$	1,114
Cost of sales	—			538			199		(25		)	712
Gross profit	—			325			77		—			402
Selling, general and administrative expenses	7			166			45		—			218
Legacy and separation-related expenses, net	7			10			—		—			17
Equity and other (income) expenses	—			(26		)	5		—			(21		)
Operating (loss) income	(14		)	175			27		—			188
Net pension and other postretirement plan non-service income and remeasurement adjustments	—			(20		)	—		—			(20		)
Net interest and other financing expenses	25			3			2		—			30
(Loss) income before income taxes	(39		)	192			25		—			178
Income tax expense	17			98			6		—			121
Equity in net income of subsidiaries	(113		)	(19		)	—		132			—
Net income	$	57		$	113		$	19	$	(132	)	$	57
Total comprehensive income	$	57		$	113		$	22	$	(135	)	$	57

Condensed Consolidating Statements of Comprehensive Income
For the six months ended March 31, 2017
(In millions)	Valvoline Inc. (Parent Issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Sales	$	—		$	779		$	251	$	(27	)	$	1,003
Cost of sales	—			465			182		(27		)	620
Gross profit	—			314			69		—			383
Selling, general and administrative expenses	4			141			47		—			192
Legacy and separation-related expenses, net	—			12			—		—			12
Equity and other (income) expenses	—			(21		)	6		—			(15		)
Operating (loss) income	(4		)	182			16		—			194
Net pension and other postretirement plan non-service income and remeasurement adjustments	—			(43		)	—		—			(43		)
Net interest and other financing expenses	17			1			—		—			18
(Loss) income before income taxes	(21		)	224			16		—			219
Income tax (benefit) expense	(8		)	78			6		—			76
Equity in net income of subsidiaries	(156		)	(10		)	—		166			—
Net income	$	143		$	156		$	10	$	(166	)	$	143
Total comprehensive income	$	136		$	149		$	8	$	(157	)	$	136

Condensed Consolidating Balance Sheets

Condensed Consolidating Balance Sheets
As of March 31, 2018
(In millions)	Valvoline Inc. (Parent Issuer)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Current assets
Cash and cash equivalents	$	—		$	21	$	106	$	—		$	127
Accounts receivable, net	—			66		515		(146		)	435
Inventories, net	—			112		82		—			194
Other current assets	—			36		3		—			39
Total current assets	—			235		706		(146		)	795
Noncurrent assets
Property, plant and equipment, net	—			353		37		—			390
Goodwill and intangibles, net	—			395		1		—			396
Equity method investments	—			34		—		—			34
Investment in subsidiaries	705			490		—		(1,195		)	—
Deferred income taxes	127			29		15		—			171
Other noncurrent assets	128			75		5		(125		)	83
Total noncurrent assets	960			1,376		58		(1,320		)	1,074
Total assets	$	960		$	1,611	$	764	$	(1,466	)	$	1,869
Liabilities and Stockholders’ Deficit
Current Liabilities
Current portion of long-term debt	$	23		$	—	$	—	$	—		$	23
Trade and other payables	—			281		59		(146		)	194
Accrued expenses and other liabilities	110			57		31		—			198
Total current liabilities	133			338		90		(146		)	415
Noncurrent liabilities
Long-term debt	1,018			2		163		—			1,183
Employee benefit obligations	—			296		20		—			316
Other noncurrent liabilities	35			270		1		(125		)	181
Total noncurrent liabilities	1,053			568		184		(125		)	1,680
Commitments and contingencies
Stockholders’ (deficit) equity	(226		)	705		490		(1,195		)	(226		)
Total liabilities and stockholders’ deficit/equity	$	960		$	1,611	$	764	$	(1,466	)	$	1,869

Condensed Consolidating Balance Sheets
As of September 30, 2017
(In millions)	Valvoline Inc. (Parent Issuer)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Current assets
Cash and cash equivalents	$	—		$	99	$	102	$	—		$	201
Accounts receivable, net	—			57		389		(61		)	385
Inventories, net	—			94		81		—			175
Other current assets	—			25		4		—			29
Total current assets	—			275		576		(61		)	790
Noncurrent assets
Property, plant and equipment, net	—			353		38		—			391
Goodwill and intangibles, net	—			333		2		—			335
Equity method investments	—			30		—		—			30
Investment in subsidiaries	606			447		—		(1,053		)	—
Deferred income taxes	145			122		14		—			281
Other noncurrent assets	314			80		6		(312		)	88
Total noncurrent assets	1,065			1,365		60		(1,365		)	1,125
Total assets	$	1,065		$	1,640	$	636	$	(1,426	)	$	1,915
Liabilities and Stockholders’ Deficit
Current Liabilities
Short-term debt	$	—		$	—	$	75	$	—		$	75
Current portion of long-term debt	15			—		—		—			15
Trade and other payables	2			198		53		(61		)	192
Accrued expenses and other liabilities	103			60		33		—			196
Total current liabilities	120			258		161		(61		)	478
Noncurrent liabilities
Long-term debt	1,032			2		—		—			1,034
Employee benefit obligations	—			321		21		—			342
Other noncurrent liabilities	30			453		7		(312		)	178
Total noncurrent liabilities	1,062			776		28		(312		)	1,554
Commitments and contingencies
Stockholders’ (deficit) equity	(117		)	606		447		(1,053		)	(117		)
Total liabilities and stockholders’ deficit/equity	$	1,065		$	1,640	$	636	$	(1,426	)	$	1,915

Condensed Consolidating Statements of Cash Flows

Condensed Consolidating Statements of Cash Flows
For the six months ended March 31, 2018
(In millions)	Valvoline Inc. (Parent Issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flow (used in) provided by operating activities	$	(24	)	$	199		$	(67	)	$	—		$	108
Cash flows from investing activities
Additions to property, plant and equipment	—			(28		)	(2		)	—			(30		)
Acquisitions, net of cash required	—			(67		)	—			—			(67		)
Proceeds from sale of operations	—			5			—			—			5
Other investing activities, net	—			1			—			—			1
Return of advance from subsidiary	187			—			—			(187		)	—
Total cash provided by (used in) investing activities	187			(89		)	(2		)	(187		)	(91		)
Cash flows from financing activities
Proceeds from borrowings, net of issuance costs	6			—			89			—			95
Repayments on borrowings	(14		)	—			(1		)	—			(15		)
Repurchases of common stock	(123		)	—			—			—			(123		)
Purchase of additional ownership in subsidiary	—			—			(15		)	—			(15		)
Cash dividends paid	(30		)	—			—			—			(30		)
Other financing activities	(2		)	(1		)	(2		)	—			(5		)
Other intercompany activity, net	—			(187		)	—			187			—
Total cash (used in) provided by financing activities	(163		)	(188		)	71			187			(93		)
Effect of currency exchange rate changes on cash and cash equivalents	—			—			2			—			2
(Decrease) increase in cash and cash equivalents	—			(78		)	4			—			(74		)
Cash and cash equivalents - beginning of year	—			99			102			—			201
Cash and cash equivalents - end of period	$	—		$	21		$	106		$	—		$	127

Condensed Consolidating Statements of Cash Flows
For the six months ended March 31, 2017
(In millions)	Valvoline Inc. (Parent Issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows provided by (used in) operating activities	$	93		$	39		$	(62	)	$	—		$	70
Cash flows from investing activities
Additions to property, plant and equipment	—			(27		)	—			—			(27		)
Acquisitions, net of cash required	—			(48		)	—			—			(48		)
Other investing activities, net	—			(1		)	—			—			(1		)
Advance from subsidiary	10			—			—			(10		)	—
Total cash provided by (used in) investing activities	10			(76		)	—			(10		)	(76		)
Cash flows from financing activities
Net transfers to Ashland	(2		)	—			—			—			(2		)
Proceeds from borrowings	—			—			75			—			75
Repayments on borrowings	(83		)	—			—			—			(83		)
Cash dividends paid	(20		)	—			—			—			(20		)
Other intercompany activity, net	2			(12		)	—			10			—
Total cash (used in) provided by financing activities	(103		)	(12		)	75			10			(30		)
Effect of currency exchange rate changes on cash and cash equivalents	—			—			(1		)	—			(1		)
(Decrease) increase in cash and cash equivalents	—			(49		)	12			—			(37		)
Cash and cash equivalents - beginning of year	—			93			79			—			172
Cash and cash equivalents - end of period	$	—		$	44		$	91		$	—		$	135