Goodwill and Other Intangibles

12 Months Ended

Sep. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangibles

GOODWILL AND OTHER INTANGIBLES

Goodwill

The following summarizes the changes in the carrying amount of goodwill for each reportable segment and in total during fiscal 2019 and 2018:

(In millions)	Quick Lubes		Core North America		International		Total
Balance at September 30, 2017	$	201	$	89	$	40	$	330
Acquisitions (a)	52		—		—		52
Dispositions (b)	(1)		—		—		$	(1)
Balance at September 30, 2018	252		89		40		381
Acquisitions (c)	50		—		—		50
Currency translation	(1)		—		—		(1)
Balance at September 30, 2019	$	301	$	89	$	40	$	430

(a)Activity associated with the acquisitions of Great Canadian Oil Change, Henley Bluewater, seven additional service center stores, and adjustments related to prior year acquisitions. Refer to Note 5 for further details.

(b)Activity associated with the derecognition of goodwill as a result of the sale and disposition of two quick lube service center stores. Refer to Note 5 for details regarding the disposition.

(c)Activity associated with the acquisitions of Oil Changers and 29 additional service center stores. Refer to Note 5 for further details.

Other intangible assets

Valvoline’s purchased intangible assets were specifically identified when acquired, have finite lives, and are reported in Goodwill and intangibles, net on the Consolidated Balance Sheets. The following summarizes the gross carrying amounts and accumulated amortization of the Company’s intangible assets as of September 30:

(In millions)	2019						2018
	Gross carrying amount		Accumulated amortization		Net carrying amount		Gross carrying amount		Accumulated amortization		Net carrying amount
Definite-lived intangible assets
Trademarks and trade names	$	30	$	(4)	$	26	$	29	$	(2)	$	27
Reacquired franchise rights	37		(8)		29		32		(4)		28
Customer relationships	22		(5)		17		14		(3)		11
Other intangible assets	3		(1)		2		1		—		1
Total definite-lived intangible assets	$	92	$	(18)	$	74	$	76	$	(9)	$	67

The table that follows summarizes amortization expense (actual and estimated) for intangible assets, assuming no additional amortizable intangible assets, for the years ended September 30:

	Actual		Estimated
(In millions)	2019		2020		2021		2022		2023		2024
Amortization expense	$	9	$	9	$	9	$	8	$	8	$	7