XML 30 R19.htm IDEA: XBRL DOCUMENT v3.10.0.1
Reportable Segment Information
9 Months Ended
Jun. 30, 2018
Segment Reporting [Abstract]  
Reportable Segment Information
REPORTABLE SEGMENT INFORMATION

Valvoline manages and reports within the following three segments: 

Core North America - sells Valvoline and other branded products and solutions in the United States and Canada to retailers for consumers to perform their own automotive and engine maintenance, as well as to installer and heavy-duty customers who use Valvoline products to service vehicles and equipment.
Quick Lubes - services the passenger car and light truck quick lube market through: company-owned and franchised Valvoline Instant Oil Change (“VIOC”) retail quick lube service stores, and its Express Care stores for independent operators to purchase Valvoline motor oil and other products and display Valvoline branded signage.
International - sells Valvoline and other branded products in approximately 140 countries outside of the United States and Canada for the maintenance of consumer and commercial vehicles and equipment.

These segments represent components of the Company for which separate financial information is available that is utilized on a regular basis by the chief operating decision maker in assessing segment performance and in allocating the Company’s resources. Sales and operating income are the primary measures evaluated in assessing each reportable segment’s financial performance. Intersegment sales are not material, and assets are not regularly included in the assessment of segment performance; consequently, these items are not disclosed by segment herein.

To maintain operating focus on business performance, certain corporate and non-operational items, including adjustments related to legacy businesses that no longer are attributed to Valvoline, are excluded from the segment operating results utilized by the chief operating decision maker in evaluating segment performance and are separately delineated within Unallocated and other to reconcile to total reported Operating income as shown in the table below.

The following table presents sales and operating income for each reportable segment:



(In millions)
 
Three months ended
June 30
 
Nine months ended June 30
 
2018
 
2017
 
2018
 
2017
Sales
 
 
 
 
 
 
 
 
Core North America
 
$
264

 
$
258

 
$
773

 
$
748

Quick Lubes
 
167

 
139

 
479

 
394

International
 
146

 
137

 
439

 
395

Consolidated sales
 
$
577

 
$
534

 
$
1,691

 
$
1,537

 
 
 
 
 
 
 
 
 
Operating income (loss)
 
 
 
 
 
 
 
 
Core North America
 
$
41

 
$
48

 
$
130

 
$
156

Quick Lubes
 
38

 
34

 
111

 
94

International
 
20

 
18

 
63

 
56

Total operating segments
 
$
99

 
$
100

 
$
304

 
$
306

Unallocated and other (a)
 
3

 
(13
)
 
(14
)
 
(25
)
Consolidated operating income
 
$
102

 
$
87

 
$
290

 
$
281

 
 
 
 
 
 
 
 
 
(a)
Unallocated and other includes legacy and separation-related expenses, net.