Acquisitions and Divestitures (Tables)

12 Months Ended

Sep. 30, 2018

Schedule of Aggregate Cash Consideration and Total Assets Acquired and Liabilities Assumed

A summary follows of the aggregate cash consideration paid and the total assets acquired and liabilities assumed for the years ended September 30:



(In millions)	2018		2017		2016
Inventories	$	2	$	1	$	1
Other current assets	1		—		1
Property, plant and equipment	2		2		9
Goodwill^(a)	58		60		94
Intangible assets
Trademarks and trade names^(b)	27		1		1
Reacquired franchise rights ^{(a) (c)}	26		6		—
Customer relationships ^(d)	9		2		—
Other	—		—		1
Other noncurrent assets	—		—		3
Trade and other payables	—		—		(11		)
Debt	—		—		(11		)
Other noncurrent liabilities	—		—		(9		)
Net assets acquired	$	125	$	72	$	79


(a)	Approximately $83 million of the goodwill recognized in fiscal 2016 was not deductible for income tax purposes. In addition, during fiscal 2018, the purchase price allocation for the acquisition of certain former franchise service center stores during fiscal 2017 was adjusted to reduce goodwill and increase reacquired franchise rights by $6 million.


(b)	Weighted average amortization period of 19 years.

(c)

Prior to the acquisition of former franchise service center stores, Valvoline licensed the right to operate franchised quick lube service centers, including use of the Company’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 8 years. The effective settlement of these arrangements resulted in no settlement gain or loss as the contractual terms were at market.


(d)	Weighted average amortization period of 13 years.