REPORTABLE SEGMENT INFORMATION

Valvoline manages and reports within the following three segments:


•	Core North America - sells engine and automotive maintenance products in the United States and Canada to retailers, installers and heavy-duty customers to service vehicles and equipment.


•	Quick Lubes - services the passenger car and light truck quick lube market in the United States and Canada through company-owned and independent franchised retail quick lube service center stores, as well as Express Care stores where independent operators service vehicles with Valvoline products.


•	International - sells engine and automotive maintenance 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 U.S. GAAP measures evaluated in assessing each reportable segment’s financial performance. Intersegment sales are not material, and assets are not allocated and 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.

Valvoline did not have a single customer that represented 10% of consolidated net sales in fiscal 2016, 2017 or 2018.

Reportable segment results

The following table presents sales, operating income, and depreciation and amortization by reportable segment for the years ended September 30:



(In millions)	2018			2017			2016
Sales
Core North America	$	1,035		$	1,004		$	979
Quick Lubes	660			541			457
International	590			539			493
Consolidated sales	$	2,285		$	2,084		$	1,929

Operating income
Core North America	$	172		$	199		$	212
Quick Lubes	153			130			117
International^(a)	84			76			74
Total operating segments	409			405			403
Unallocated and other ^(b)	(14		)	(11		)	(7		)
Consolidated operating income	$	395		$	394		$	396

Depreciation and amortization
Core North America	$	18		$	15		$	16
Quick Lubes	30			22			17
International	6			5			5
Consolidated depreciation and amortization	$	54		$	42		$	38


(a)	Equity income is included in operating income and is recognized within the International reportable segment. Equity income was $14 million, $12 million and $12 million in fiscal 2018, 2017 and 2016, respectively. Refer to Note 5 for additional details regarding the Company’s equity method investments.


(b)	Unallocated and other includes Legacy and separation-related expenses, net.

The following table summarizes sales by category for each reportable segment for the years ended September 30:



	Sales by category
	Core North America						Quick Lubes						International
	2018		2017		2016		2018		2017		2016		2018		2017		2016
Lubricants	85	%	86	%	87	%	85	%	84	%	83	%	89	%	89	%	89	%
Antifreeze	8	%	7	%	7	%	1	%	1	%	1	%	5	%	6	%	3	%
Filters	3	%	3	%	2	%	8	%	8	%	8	%	3	%	1	%	1	%
Chemicals and other	4	%	4	%	4	%	2	%	2	%	2	%	3	%	4	%	7	%
Franchise	—		—		—		4	%	5	%	6	%	—		—		—
Total	100	%	100	%	100	%	100	%	100	%	100	%	100	%	100	%	100	%

Entity-wide disclosures

Sales and net property, plant and equipment are attributed to the geographic area or country to which product is delivered and the assets physically reside, respectively. The following table presents sales and net property, plant and equipment by geographic area for Valvoline for the years ended September 30:



	Sales from external customers						Property, plant and equipment, net
(In millions)	2018		2017		2016		2018		2017
United States	$	1,652	$	1,504	$	1,397	$	384	$	352
International	633		580		532		36		39
Total	$	2,285	$	2,084	$	1,929	$	420	$	391

Sales by geography expressed as a percentage of total consolidated sales were as follows:



	For the years ended September 30
Sales by geography	2018		2017		2016
North America ^(a)	74	%	74	%	75	%
EMEA (Europe, Middle East and Africa)	8	%	7	%	7	%
Asia Pacific	13	%	14	%	14	%
Latin America	5	%	5	%	4	%
Total	100	%	100	%	100	%


(a)	Valvoline includes the United States and Canada in its North American region.