Transactions with Ashland

12 Months Ended

Sep. 30, 2019

Related Party Transactions [Abstract]

Transactions with Ashland

TRANSACTIONS WITH ASHLAND

Payable to Ashland

Valvoline had total net obligations due to Ashland of $78 million and $79 million as of September 30, 2019 and 2018, respectively, which were primarily recorded in Other noncurrent liabilities in the Consolidated Balance Sheets. These liabilities generally relate to net obligations due to Ashland under the Tax Matters Agreement as well as reimbursements

payable to Ashland for certain other contractual obligations, including those intended to transfer to Valvoline as part of the Distribution. Refer to Note 14 for additional details regarding the Tax Matters Agreement and related obligations.

Transition Services Agreements

Valvoline entered into a Transition Services Agreement (“TSA”) and Reverse Transition Services Agreement (“RTSA”) as well as certain other arrangements in connection with the separation from Ashland, which provided for certain continued corporate support services provided by Valvoline and Ashland to one another following the IPO. Valvoline began to set up its own corporate functions in connection with the IPO, and Ashland provided various corporate support services for Valvoline pursuant to the TSA, including certain accounting, human resources, information technology, office and building, risk, security, tax and treasury services. Pursuant to the RTSA, Valvoline provided Ashland with various corporate support services, including certain human resources, information technology, office and building, security, tax services, and certain regulatory compliance services. The term of these agreements generally expired two years after the IPO, and the charges associated with these services were not material during the years presented herein. The costs were consistent with expenses that Ashland had historically allocated or Valvoline incurred with respect to such services, plus a mark-up of five percent.

Separation from Ashland

Immediately prior to the Distribution, Ashland owned 170 million shares of Valvoline common stock, which represented approximately 83% of the outstanding shares of Valvoline common stock. Effective upon the Distribution, Ashland no longer held any shares of Valvoline common stock. Refer to Note 1 for further information on the separation from Ashland. Also refer to Note 17 for information regarding the conversion of share-based awards from Ashland to Valvoline at Distribution.