Guarantor Financial Information (Tables)

9 Months Ended

Jun. 30, 2018

Condensed Financial Information Disclosure [Abstract]

Condensed Consolidating Statements of Comprehensive Income

Condensed Consolidating Statements of Comprehensive Income
For the three months ended June 30, 2018
(In millions)	Valvoline Inc. (Parent Issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Sales	$	—		$	456		$	137		$	(16	)	$	577
Cost of sales	—			294			98			(16		)	376
Gross profit	—			162			39			—			201
Selling, general and administrative expenses	3			81			26			—			110
Legacy and separation-related expenses, net	(3		)	—			—			—			(3		)
Equity and other (income) expenses	—			(11		)	3			—			(8		)
Operating income	—			92			10			—			102
Net pension and other postretirement plan non-service income and remeasurement adjustments	—			(10		)	—			—			(10		)
Net interest and other financing expenses	14			1			—			—			15
(Loss) income before income taxes	(14		)	101			10			—			97
Income tax (benefit) expense	(1		)	30			4			—			33
Equity in net income of subsidiaries	(77		)	(6		)	—			83			—
Net income	$	64		$	77		$	6		$	(83	)	$	64
Total comprehensive income (loss)	$	48		$	61		$	(5	)	$	(56	)	$	48

Condensed Consolidating Statements of Comprehensive Income
For the three months ended June 30, 2017
(In millions)	Valvoline Inc. (Parent Issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Sales	$	—		$	418		$	131	$	(15	)	$	534
Cost of sales	—			259			93		(15		)	337
Gross profit	—			159			38		—			197
Selling, general and administrative expenses	3			77			22		—			102
Legacy and separation-related expenses, net	(2		)	15			—		—			13
Equity and other (income) expenses	—			(8		)	3		—			(5		)
Operating (loss) income	(1		)	75			13		—			87
Net pension and other postretirement plan non-service income and remeasurement adjustments	—			(17		)	—		—			(17		)
Net interest and other financing expenses	8			1			1		—			10
(Loss) income before income taxes	(9		)	91			12		—			94
Income tax (benefit) expense	(2		)	37			3		—			38
Equity in net income of subsidiaries	(63		)	(9		)	—		72			—
Net income	$	56		$	63		$	9	$	(72	)	$	56
Total comprehensive income	$	60		$	67		$	19	$	(86	)	$	60

Condensed Consolidating Statements of Comprehensive Income
For the nine months ended June 30, 2018
(In millions)	Valvoline Inc. (Parent Issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Sales	$	—		$	1,319		$	413	$	(41	)	$	1,691
Cost of sales	—			832			297		(41		)	1,088
Gross profit	—			487			116		—			603
Selling, general and administrative expenses	10			247			71		—			328
Legacy and separation-related expenses, net	4			10			—		—			14
Equity and other (income) expenses	—			(37		)	8		—			(29		)
Operating (loss) income	(14		)	267			37		—			290
Net pension and other postretirement plan non-service income and remeasurement adjustments	—			(30		)	—		—			(30		)
Net interest and other financing expenses	39			4			2		—			45
(Loss) income before income taxes	(53		)	293			35		—			275
Income tax expense	16			128			10		—			154
Equity in net income of subsidiaries	(190		)	(25		)	—		215			—
Net income	$	121		$	190		$	25	$	(215	)	$	121
Total comprehensive income	$	105		$	174		$	17	$	(191	)	$	105

Condensed Consolidating Statements of Comprehensive Income
For the nine months ended June 30, 2017
(In millions)	Valvoline Inc. (Parent Issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Sales	$	—		$	1,197		$	382	$	(42	)	$	1,537
Cost of sales	—			724			275		(42		)	957
Gross profit	—			473			107		—			580
Selling, general and administrative expenses	7			218			69		—			294
Legacy and separation-related expenses, net	(2		)	27			—		—			25
Equity and other (income) expenses	—			(29		)	9		—			(20		)
Operating (loss) income	(5		)	257			29		—			281
Net pension and other postretirement plan non-service income and remeasurement adjustments	—			(60		)	—		—			(60		)
Net interest and other financing expenses	25			2			1		—			28
(Loss) income before income taxes	(30		)	315			28		—			313
Income tax (benefit) expense	(10		)	115			9		—			114
Equity in net income of subsidiaries	(219		)	(19		)	—		238			—
Net income	$	199		$	219		$	19	$	(238	)	$	199
Total comprehensive income	$	196		$	216		$	27	$	(243	)	$	196

Condensed Income Statement

Condensed Consolidating Statements of Comprehensive Income
For the three months ended June 30, 2018
(In millions)	Valvoline Inc. (Parent Issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Sales	$	—		$	456		$	137		$	(16	)	$	577
Cost of sales	—			294			98			(16		)	376
Gross profit	—			162			39			—			201
Selling, general and administrative expenses	3			81			26			—			110
Legacy and separation-related expenses, net	(3		)	—			—			—			(3		)
Equity and other (income) expenses	—			(11		)	3			—			(8		)
Operating income	—			92			10			—			102
Net pension and other postretirement plan non-service income and remeasurement adjustments	—			(10		)	—			—			(10		)
Net interest and other financing expenses	14			1			—			—			15
(Loss) income before income taxes	(14		)	101			10			—			97
Income tax (benefit) expense	(1		)	30			4			—			33
Equity in net income of subsidiaries	(77		)	(6		)	—			83			—
Net income	$	64		$	77		$	6		$	(83	)	$	64
Total comprehensive income (loss)	$	48		$	61		$	(5	)	$	(56	)	$	48

Condensed Consolidating Statements of Comprehensive Income
For the three months ended June 30, 2017
(In millions)	Valvoline Inc. (Parent Issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Sales	$	—		$	418		$	131	$	(15	)	$	534
Cost of sales	—			259			93		(15		)	337
Gross profit	—			159			38		—			197
Selling, general and administrative expenses	3			77			22		—			102
Legacy and separation-related expenses, net	(2		)	15			—		—			13
Equity and other (income) expenses	—			(8		)	3		—			(5		)
Operating (loss) income	(1		)	75			13		—			87
Net pension and other postretirement plan non-service income and remeasurement adjustments	—			(17		)	—		—			(17		)
Net interest and other financing expenses	8			1			1		—			10
(Loss) income before income taxes	(9		)	91			12		—			94
Income tax (benefit) expense	(2		)	37			3		—			38
Equity in net income of subsidiaries	(63		)	(9		)	—		72			—
Net income	$	56		$	63		$	9	$	(72	)	$	56
Total comprehensive income	$	60		$	67		$	19	$	(86	)	$	60

Condensed Consolidating Statements of Comprehensive Income
For the nine months ended June 30, 2018
(In millions)	Valvoline Inc. (Parent Issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Sales	$	—		$	1,319		$	413	$	(41	)	$	1,691
Cost of sales	—			832			297		(41		)	1,088
Gross profit	—			487			116		—			603
Selling, general and administrative expenses	10			247			71		—			328
Legacy and separation-related expenses, net	4			10			—		—			14
Equity and other (income) expenses	—			(37		)	8		—			(29		)
Operating (loss) income	(14		)	267			37		—			290
Net pension and other postretirement plan non-service income and remeasurement adjustments	—			(30		)	—		—			(30		)
Net interest and other financing expenses	39			4			2		—			45
(Loss) income before income taxes	(53		)	293			35		—			275
Income tax expense	16			128			10		—			154
Equity in net income of subsidiaries	(190		)	(25		)	—		215			—
Net income	$	121		$	190		$	25	$	(215	)	$	121
Total comprehensive income	$	105		$	174		$	17	$	(191	)	$	105

Condensed Consolidating Statements of Comprehensive Income
For the nine months ended June 30, 2017
(In millions)	Valvoline Inc. (Parent Issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Sales	$	—		$	1,197		$	382	$	(42	)	$	1,537
Cost of sales	—			724			275		(42		)	957
Gross profit	—			473			107		—			580
Selling, general and administrative expenses	7			218			69		—			294
Legacy and separation-related expenses, net	(2		)	27			—		—			25
Equity and other (income) expenses	—			(29		)	9		—			(20		)
Operating (loss) income	(5		)	257			29		—			281
Net pension and other postretirement plan non-service income and remeasurement adjustments	—			(60		)	—		—			(60		)
Net interest and other financing expenses	25			2			1		—			28
(Loss) income before income taxes	(30		)	315			28		—			313
Income tax (benefit) expense	(10		)	115			9		—			114
Equity in net income of subsidiaries	(219		)	(19		)	—		238			—
Net income	$	199		$	219		$	19	$	(238	)	$	199
Total comprehensive income	$	196		$	216		$	27	$	(243	)	$	196

Condensed Consolidating Balance Sheets

Condensed Consolidating Balance Sheets
As of June 30, 2018
(In millions)	Valvoline Inc. (Parent Issuer)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Current assets
Cash and cash equivalents	$	—		$	7	$	100	$	—		$	107
Accounts receivable, net	1			98		517		(155		)	461
Inventories, net	—			112		84		—			196
Other current assets	—			23		3		—			26
Total current assets	1			240		704		(155		)	790
Noncurrent assets
Property, plant and equipment, net	—			363		36		—			399
Goodwill and intangibles, net	—			397		1		—			398
Equity method investments	—			33		—		—			33
Investment in subsidiaries	762			477		—		(1,239		)	—
Deferred income taxes	60			73		14		—			147
Other noncurrent assets	51			75		5		(49		)	82
Total noncurrent assets	873			1,418		56		(1,288		)	1,059
Total assets	$	874		$	1,658	$	760	$	(1,443	)	$	1,849
Liabilities and Stockholders’ Deficit
Current Liabilities
Current portion of long-term debt	$	26		$	—	$	—	$	—		$	26
Trade and other payables	—			280		51		(155		)	176
Accrued expenses and other liabilities	50			135		38		—			223
Total current liabilities	76			415		89		(155		)	425
Noncurrent liabilities
Long-term debt	1,055			2		174		—			1,231
Employee benefit obligations	—			285		18		—			303
Other noncurrent liabilities	31			194		2		(49		)	178
Total noncurrent liabilities	1,086			481		194		(49		)	1,712
Commitments and contingencies
Stockholders’ (deficit) equity	(288		)	762		477		(1,239		)	(288		)
Total liabilities and stockholders’ deficit/equity	$	874		$	1,658	$	760	$	(1,443	)	$	1,849

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 nine months ended June 30, 2018
(In millions)	Valvoline Inc. (Parent Issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flow (used in) provided by operating activities	$	(28	)	$	287		$	(78	)	$	—		$	181
Cash flows from investing activities
Additions to property, plant and equipment	—			(48		)	(3		)	—			(51		)
Acquisitions, net of cash required	—			(71		)	—			—			(71		)
Proceeds from sale of operations	—			5			—			—			5
Return of advance from subsidiary	263			—			—			(263		)	—
Total cash provided by (used in) investing activities	263			(114		)	(3		)	(263		)	(117		)
Cash flows from financing activities
Proceeds from borrowings, net of issuance costs	70			—			100			—			170
Repayments on borrowings	(38		)	—			(1		)	—			(39		)
Repurchases of common stock	(220		)	—			—			—			(220		)
Purchase of additional ownership in subsidiary	—			—			(15		)	—			(15		)
Cash dividends paid	(45		)	—			—			—			(45		)
Other financing activities	(2		)	(2		)	(2		)	—			(6		)
Other intercompany activity, net	—			(263		)	—			263			—
Total cash (used in) provided by financing activities	(235		)	(265		)	82			263			(155		)
Effect of currency exchange rate changes on cash and cash equivalents	—			—			(3		)	—			(3		)
Decrease in cash and cash equivalents	—			(92		)	(2		)	—			(94		)
Cash and cash equivalents - beginning of year	—			99			102			—			201
Cash and cash equivalents - end of period	$	—		$	7		$	100		$	—		$	107

Condensed Consolidating Statements of Cash Flows
For the nine months ended June 30, 2017
(In millions)	Valvoline Inc. (Parent Issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows provided by (used in) operating activities	$	101		$	112		$	(56	)	$	—		$	157
Cash flows from investing activities
Additions to property, plant and equipment	—			(42		)	(1		)	—			(43		)
Acquisitions, net of cash required	—			(66		)	—			—			(66		)
Advance from subsidiary	66			—			—			(66		)	—
Total cash provided by (used in) investing activities	66			(108		)	(1		)	(66		)	(109		)
Cash flows from financing activities
Net transfers from Ashland	5			—			—			—			5
Proceeds from borrowings	—			—			75			—			75
Repayments on borrowings	(87		)	—			—			—			(87		)
Repurchases of common stock	(50		)	—			—			—			(50		)
Cash dividends paid	(30		)	—			—			—			(30		)
Other intercompany activity, net	(5		)	(61		)	—			66			—
Total cash (used in) provided by financing activities	(167		)	(61		)	75			66			(87		)
Effect of currency exchange rate changes on cash and cash equivalents	—			—			(1		)	—			(1		)
(Decrease) increase in cash and cash equivalents	—			(57		)	17			—			(40		)
Cash and cash equivalents - beginning of year	—			93			79			—			172
Cash and cash equivalents - end of period	$	—		$	36		$	96		$	—		$	132