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Employee Benefit Plans (Tables)
 12 Months Ended
Sep. 30, 2018
Retirement Benefits [Abstract]  
Summary of the Components of Benefit Costs (Income)
The following table summarizes the components of pension and other postretirement plans net periodic benefit income and the assumptions used in this determination for the years ended September 30:
(In millions)
 
Pension benefits
 
Other postretirement benefits
 
2018
 
2017
 
2016
 
2018
 
2017
 
2016
Net periodic benefit income
 
 
 
 
 
 
 
 
 
 
 
 
Service cost
 
$
2

 
$
2

 
$
3

 
$
—

 
$
—

 
$
—

Interest cost
 
75

 
86

 
11

 
2

 
1

 
—

Expected return on plan assets
 
(103
)
 
(145
)
 
(17
)
 
—

 
—

 
—

Amortization of prior service credit (a)
 
—

 
—

 
—

 
(12
)
 
(12
)
 
(1
)
Actuarial loss (gain)
 
38

 
(63
)
 
(42
)
 
—

 
(5
)
 
—

Pre-separation allocation from Ashland (b)
 
—

 
—

 
21

 
—

 
—

 
—

Net periodic benefit costs (income)
 
$
12

 
$
(120
)
 
$
(24
)
 
$
(10
)
 
$
(16
)
 
$
(1
)
Weighted-average plan assumptions (c)
 
 
 
 
 
 
 
 
 
 
 
 
Discount rate for service cost (d)
 
2.94
%
 
2.15
%
 
4.10
%
 
4.05
%
 
2.95
%
 
4.25
%
Discount rate for interest cost (d)
 
3.23
%
 
2.84
%
 
3.23
%
 
3.11
%
 
2.64
%
 
2.92
%
Rate of compensation increase
 
3.05
%
 
2.99
%
 
3.23
%
 
—

 
—

 
—

Expected long-term rate of return on plan assets
 
5.17
%
 
6.56
%
 
6.77
%
 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
Other postretirement plan amendments noted above resulted in negative plan amendments that are amortized within this caption during all periods presented.
(b)
The pre-Contribution allocation from Ashland in fiscal 2016 until the transfer of plans to Valvoline at September 1, 2016 consist of service cost of $7 million, non-service income of $10 million, and actuarial losses of $24 million.
(c)
The plan assumptions are a blended weighted-average rate for Valvoline’s U.S. and non-U.S. plans. The 2016 assumptions reflect a combination of a full year of Valvoline stand-alone plans and one month for the plans transferred to Valvoline on September 1, 2016. The U.S. pension plans represented approximately 97% of the total pension projected benefit obligation as of September 30, 2018. Other postretirement benefit plans consist of U.S. and Canada, with the U.S. plan representing approximately 75% of the total other postretirement projected benefit obligation as of September 30, 2018. Non-U.S. plans use assumptions generally consistent with those of U.S. plans.    
(d)
Weighted-average discount rates reflect the adoption of the full yield curve approach in fiscal 2016.                    
Schedule of Amortization of Prior Service Cost (Credit) Recognized in AOCI
The following table summarizes the amortization of prior service credit recognized in accumulated other comprehensive loss:

 
 
Pension benefits
 
Other postretirement benefits
(In millions)
 
2018
 
2017
 
2018
 
2017
Amortization of prior service credit recognized in accumulated other comprehensive income
 
$
—

 
$
—

 
$
12

 
$
12

Net periodic benefit costs (income)
 
12

 
(120
)
 
(10
)
 
(16
)
Total amount recognized in net periodic benefit cost (income) and accumulated other comprehensive income
 
$
12

 
$
(120
)
 
$
2

 
$
(4
)
Schedule of Changes in Projected Benefit Obligations
The following table summarizes the changes in benefit obligations and the fair value of plan assets, as well as key assumptions used to determine the benefit obligations, and the amounts recognized in the Consolidated Balance Sheets as of September 30, 2018 and 2017 for the Company’s pension and other postretirement benefit plans:
(In millions)
 
Pension benefits
 
Other postretirement benefits
 
2018
 
2017
 
2018
 
2017
Change in benefit obligations
 
 
 
 
 
 
 
 
Benefit obligations as of October 1
 
$
2,381

 
$
3,138

 
$
57

 
$
73

Service cost
 
2

 
2

 
—

 
—

Interest cost
 
75

 
86

 
2

 
1

Participant contributions
 
—

 
—

 
—

 
3

Benefits paid
 
(146
)
 
(210
)
 
(7
)
 
(16
)
Actuarial gain
 
(95
)
 
(60
)
 
—

 
(5
)
Currency exchange rate changes
 
(3
)
 
4

 
(1
)
 
1

Transfers in
 
9

 
6

 
—

 
—

Settlements
 
(136
)
 
(585
)
 
—

 
—

Benefit obligations as of September 30
 
$
2,087

 
$
2,381

 
$
51

 
$
57

Change in plan assets
 
 
 
 
 
 
 
 
Fair value of plan assets as of October 1
 
$
2,081

 
$
2,307

 
$
—

 
$
—

Actual return on plan assets
 
(30
)
 
148

 
—

 
—

Employer contributions
 
16

 
412

 
7

 
13

Participant contributions
 
—

 
—

 
—

 
3

Benefits paid
 
(146
)
 
(210
)
 
(7
)
 
(16
)
Currency exchange rate changes
 
(3
)
 
3

 
—

 
—

Settlements
 
(136
)
 
(585
)
 
—

 
—

Transfers in
 
10

 
6

 
—

 
—

Fair value of plan assets as of September 30
 
$
1,792

 
$
2,081

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
Unfunded status of the plans as of September 30
 
$
295

 
$
300

 
$
51

 
$
57

 
 
 
 
 
 
 
 
 
Amounts recognized in the Consolidated Balance Sheets
 
 
 
 
 
 
Current benefit liabilities
 
$
10

 
$
11

 
$
6

 
$
8

Noncurrent benefit liabilities
 
285

 
289

 
45

 
49

Net amount recognized
 
$
295

 
$
300

 
$
51

 
$
57

 
 
 
 
 
 
 
 
 
Amounts recognized in accumulated other comprehensive income (loss)
 
 
 
 
Prior service cost (credit)
 
$
2

 
$
2

 
$
(56
)
 
$
(68
)
 
 
 
 
 
 
 
 
 
Weighted-average plan assumptions
 
 
 
 
 
 
 
 
Discount rate
 
4.28
%
 
3.76
%
 
4.08
%
 
3.48
%
Rate of compensation increase
 
3.10
%
 
3.13
%
 
—

 
—
Schedule of Pension Plans with a Benefit Obligation in Excess of Plan Assets
Information for pension plans with a benefit obligation in excess of the fair value of plan assets follows for the Company’s plans as of September 30:

(In millions)
 
2018
 
2017
 
Benefit obligation
 
Plan assets
 
Benefit obligation
 
Plan assets
Plans with projected benefit obligation in excess of plan assets
 
$
2,045

 
$
1,749

 
$
2,381

 
$
2,081

Plans with accumulated benefit obligation in excess of plan assets
 
$
2,034

 
$
1,741

 
$
2,368

 
$
2,072
Schedule of Weighted-Average Asset Allocations And Plan Asset Allocations
The weighted-average asset allocations for Valvoline’s U.S. and non-U.S. plans by asset category follow as of September 30:

 
 
Target
 
2018
 
2017
Plan assets allocation
 
 
 
 
 
 
Equity securities
 
15-25%
 
23
%
 
20
%
Debt securities
 
65-85%
 
76
%
 
78
%
Other
 
0-20%
 
1
%
 
2
%
Total
 
 
 
100
%
 
100
%
The following table summarizes the various investment categories that the pension plan assets are invested in and the applicable fair value hierarchy as described in Note 3 that the financial instruments are classified within these investment categories as of September 30, 2018:

 
 
Total fair value
 
Quoted prices in active markets for identical assets
 
Significant other observable inputs
 
Significant unobservable inputs
 
Assets measured at NAV
(In millions)
 
 
Level 1
 
Level 2
 
Level 3
 
Cash and cash equivalents
 
$
100

 
$
100

 
$
—

 
$
—

 
$
—

U.S. government securities and futures (a)
 
74

 
(3
)
 
77

 
—

 
—

Other government securities
 
92

 
1

 
91

 
—

 
—

Corporate debt instruments
 
1,056

 
661

 
395

 
—

 
—

Insurance contracts
 
4

 
—

 
—

 
4

 
—

Private equity and hedge funds
 
60

 
—

 
—

 
—

 
60

Common collective trusts
 
406

 
—

 
—

 
—

 
406

Total assets at fair value
 
$
1,792

 
$
759

 
$
563

 
$
4

 
$
466

 
 
 
 
 
 
 
 
 
 
 
(a)
Level 1 investments are in a liability position as of September 30, 2018 and represent exchange-traded futures contracts that are used to manage the interest rate risk in the plan asset portfolio.

The following table summarizes the various investment categories that the pension plan assets are invested in and the applicable fair value hierarchy that the financial instruments are classified within these investment categories as of September 30, 2017:

 
 
Total fair value
 
Quoted prices in active markets for identical assets
 
Significant other observable inputs
 
Significant unobservable inputs
 
Assets measured at NAV
(In millions)
 
 
Level 1
 
Level 2
 
Level 3
 
Cash and cash equivalents
 
$
13

 
$
13

 
$
—

 
$
—

 
$
—

U.S. government securities and futures
 
339

 
207

 
132

 
—

 
—

Other government securities
 
86

 
—

 
86

 
—

 
—

Corporate debt instruments
 
1,197

 
934

 
263

 
—

 
—

International equity
 
16

 
—

 
16

 
—

 
—

Private equity and hedge funds
 
414

 
—

 
—

 
—

 
414

Other investments
 
16

 
—

 
—

 
16

 
—

Total assets at fair value
 
$
2,081

 
$
1,154

 
$
497

 
$
16

 
$
414
Schedule of Reconciliation of Level 3 Assets
The following table provides a reconciliation of the beginning and ending balances for Level 3 plan assets:

(In millions)
 
Total Level 3 assets
Balance at September 30, 2016
 
$
23

Actual return on assets held at end of year
 
(7
)
Balance at September 30, 2017
 
$
16

Purchases
 
3

Sales
 
(8
)
Actual return on assets held at end of year
 
1

Actual return on assets sold during year
 
(8
)
Balance at September 30, 2018
 
$
4
Schedule of Investments Measured at Fair Value Using NAV Per Share
The following table summarizes investments for which fair value is measured using the NAV per share practical expedient as of September 30, 2018:

(In millions)
Fair value
 
Unfunded commitments
 
Redemption frequency (if currently eligible)
 
Redemption notice period
Long/short hedge funds
$
38

 
$
—

 
None (a)
 
None (a)
Relative value hedge funds
11

 
—

 
None (b)
 
None (b)
Multi-strategy hedge funds
2

 
—

 
None (b)
 
None (b)
Event driven hedge funds
1

 
—

 
None (b)
 
None (b)
Common collective trusts
386

 
—

 
Daily
 
Up to 3 days
 
12

 
 
 
Monthly
 
5 days
 
8

 
—

 
N/A (c)
 
N/A (c)
Private equity
8

 
6

 
None (d)
 
None (d)
 
$
466

 
$
6

 
 
 
 
 
 
 
 
 
 
 
 
(a)
These hedge funds are in the process of liquidation and approximately 88% will be liquidated over the next year.
(b)
These hedge funds are in the process of liquidation and the timing of such is unknown.
(c)
These assets are held in Australia and are investments in funds that include a diversified portfolio across various asset classes. The time period for redemption of these assets is not determinable.
(d)
These private equity instruments are estimated to be liquidated over the next 1 to 5 years.
Schedule of Expected Benefit Payments
The following benefit payments, which reflect future service expectations, are projected to be paid in each of the next five years and five years thereafter in aggregate:

(In millions)
 
Pension benefits
 
Other postretirement benefits
2019
 
$
142

 
$
6

2020
 
142

 
5

2021
 
143

 
4

2022
 
142

 
4

2023
 
141

 
3

Thereafter
 
695

 
15

Total
 
$
1,405

 
$
37