Accounts Receivable

12 Months Ended

Sep. 30, 2019

Receivables [Abstract]

Accounts Receivable

ACCOUNTS RECEIVABLE

The following summarizes Valvoline’s accounts receivable in the Consolidated Balance Sheets as of September 30:

(In millions)	2019		2018
Trade	$	392	$	390
Other	15		26
Accounts receivable, gross	407		416
Allowance for doubtful accounts	(6)		(7)
Total accounts receivable, net	$	401	$	409

Valvoline is party to an agreement to sell certain trade accounts receivable in the form of drafts or bills of exchange to a financial institution. Each draft constitutes an order to pay Valvoline for obligations of the customer arising from the sale of goods. The intention of the arrangement is to decrease the time accounts receivable is outstanding and increase cash

flows. During the years ended September 30, 2019 and 2018, Valvoline sold $75 million and $129 million, respectively, of accounts receivable to the financial institution.