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Guarantor Financial Information
12 Months Ended
Sep. 30, 2019
Condensed Financial Information Disclosure [Abstract]  
Guarantor Financial Information GUARANTOR FINANCIAL INFORMATION
The Senior Notes are general unsecured senior obligations of Valvoline Inc. and are fully and unconditionally guaranteed on a senior unsecured basis, jointly and severally, by the combined “Guarantor Subsidiaries.” Other subsidiaries (the “Non-Guarantor Subsidiaries”) largely represent the international operations of the Company, which do not guarantee the Senior Notes. Under the terms of the indentures, Valvoline Inc. and the Guarantor Subsidiaries each fully and unconditionally, jointly and severally, guarantee the payment of interest, principal and premium, if any, on each of the notes included in the Senior Notes. Refer to Note 12 for additional information.

The Guarantor Subsidiaries are subject to release in certain circumstances, including (i) the sale of all of the capital stock of the subsidiary, (ii) the designation of the subsidiary as an “Unrestricted Subsidiary” under the indenture governing the Senior Notes; or (iii) the release of the subsidiary as a guarantor from the Company’s 2019 Credit Agreement described further in Note 12.

In connection with the registered exchange offers for the Senior Notes completed in December 2017, the Company is required to comply with Rule 3-10 of SEC Regulation S-X (“Rule 3-10”), and has therefore included the accompanying condensed consolidating financial statements in accordance with Rule 3-10(f) of SEC Regulation S-X.

The following tables should be read in conjunction with the consolidated financial statements herein and present, on a consolidating basis, the statements of comprehensive income; balance sheets; and statements of cash flows for the parent issuer of these Senior Notes, the Guarantor Subsidiaries on a combined basis, the Non-Guarantor Subsidiaries on a combined basis and the eliminations necessary to arrive at the Company’s consolidated results. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions. The Company has accounted for its investments in its subsidiaries under the equity method.

In connection with the restructuring steps that occurred immediately prior to Valvoline's IPO as described in Note 1, certain subsidiaries were created and contributed to Valvoline which formed a new organizational structure to affect the separation from Ashland, which was completed in May 2017. Activity for the parent issuer, Guarantor Subsidiaries and Non-Guarantor Subsidiaries has been presented herein to reflect the guarantee structure in place at September 30, 2017 for all periods presented based upon the historical activity that occurred within Valvoline's legal structure that existed in each respective period presented.
Condensed Consolidating Statements of Comprehensive Income
For the year ended September 30, 2019
(In millions)Valvoline Inc.
(Parent Issuer)
Guarantor SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Sales$—  $1,896  $557  $(63) $2,390  
Cost of sales—  1,241  402  (63) 1,580  
Gross profit—  655  155  —  810  
Selling, general and administrative expenses10  348  91  —  449  
Net legacy and separation-related expenses  —  —   
Equity and other (income) expenses, net—  (57) 17  —  (40) 
Operating (loss) income(12) 363  47  —  398  
Net pension and other postretirement plan expense—  57   —  60  
Net interest and other financing expenses63    —  73  
(Loss) income before income taxes(75) 299  41  —  265  
Income tax (benefit) expense (31) 77  11  —  57  
Equity in net income of subsidiaries(252) (30) —  282  —  
Net income$208  $252  $30  $(282) $208  
Total comprehensive income$187  $231  $18  $(249) $187  
Condensed Consolidating Statements of Comprehensive Income
For the year ended September 30, 2018
(In millions)Valvoline Inc.
(Parent Issuer)
Guarantor SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Sales$—  $1,782  $558  $(55) $2,285  
Cost of sales—  1,132  402  (55) 1,479  
Gross profit—  650  156  —  806  
Selling, general and administrative expenses11  327  92  —  430  
Net legacy and separation-related expenses  —  —  14  
Equity and other (income) expenses, net—  (50) 17  —  (33) 
Operating (loss) income(19) 367  47  —  395  
Net pension and other postretirement plan expense (income)—   (1) —  —  
Net interest and other financing expenses53    —  63  
(Loss) income before income taxes(72) 360  44  —  332  
Income tax expense 14  140  12  —  166  
Equity in net income of subsidiaries(252) (32) —  284  —  
Net income$166  $252  $32  $(284) $166  
Total comprehensive income$147  $234  $25  $(259) $147  
Condensed Consolidating Statements of Comprehensive Income
For the year ended September 30, 2017
(In millions)Valvoline Inc.
(Parent Issuer)
Guarantor SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Sales$—  $1,618  $523  $(57) $2,084  
Cost of sales—  986  379  (57) 1,308  
Gross profit—  632  144  —  776  
Selling, general and administrative expenses 296  91  —  396  
Net legacy and separation-related expenses(15) 26  —  —  11  
Equity and other (income) expenses, net—  (37) 12  —  (25) 
Operating income 347  41  —  394  
Net pension and other postretirement plan income—  (134) (4) —  (138) 
Net interest and other financing expenses36    —  42  
(Loss) income before income taxes(30) 477  43  —  490  
Income tax (benefit) expense (3) 178  11  —  186  
Equity in net income of subsidiaries(331) (32) —  363  —  
Net income$304  $331  $32  $(363) $304  
Total comprehensive income$303  $330  $43  $373  $303  
Condensed Consolidating Balance Sheets
As of September 30, 2019
(In millions)Valvoline Inc.
(Parent Issuer)
Guarantor SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Assets
Current assets
Cash and cash equivalents$—  $59  $100  $—  $159  
Accounts receivable, net—  181  338  (118) 401  
Inventories, net—  110  84  —  194  
Prepaid expenses and other current assets—  35   —  43  
Total current assets—  385  530  (118) 797  
Noncurrent assets
Property, plant and equipment, net—  431  67  —  498  
Goodwill and intangibles, net—  423  81  —  504  
Equity method investments—  34  —  —  34  
Investment in subsidiaries1,157  546  —  (1,703) —  
Deferred income taxes48  61  14  —  123  
Other noncurrent assets 96   —  108  
Total noncurrent assets1,208  1,591  171  (1,703) 1,267  
Total assets$1,208  $1,976  $701  $(1,821) $2,064  
Liabilities and Stockholders’ Deficit
Current liabilities
Current portion of long-term debt$15  $—  $—  $—  $15  
Trade and other payables80  127  82  (118) 171  
Accrued expenses and other liabilities 175  53  —  237  
Total current liabilities104  302  135  (118) 423  
Noncurrent liabilities
Long-term debt1,326   —  —  1,327  
Employee benefit obligations—  369  18  —  387  
Other noncurrent liabilities36  147   —  185  
Total noncurrent liabilities1,362  517  20  —  1,899  
Commitments and contingencies
Stockholders’ (deficit) equity(258) 1,157  546  (1,703) (258) 
Total liabilities and stockholders’ deficit / equity$1,208  $1,976  $701  $(1,821) $2,064  
Condensed Consolidating Balance Sheets
As of September 30, 2018
(In millions)Valvoline Inc.
(Parent Issuer)
Guarantor SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Assets
Current assets
Cash and cash equivalents$—  $20  $76  $—  $96  
Accounts receivable, net—  48  480  (119) 409  
Inventories, net—  95  81  —  176  
Prepaid expenses and other current assets 38   —  44  
Total current assets 201  642  (119) 725  
Noncurrent assets
Property, plant and equipment, net—  384  36  —  420  
Goodwill and intangibles, net—  396  52  —  448  
Equity method investments—  31  —  —  31  
Investment in subsidiaries801  509  —  (1,310) —  
Deferred income taxes62  63  13  —  138  
Other noncurrent assets 85   —  92  
Total noncurrent assets865  1,468  106  (1,310) 1,129  
Total assets$866  $1,669  $748  $(1,429) $1,854  
Liabilities and Stockholders’ Deficit
Current liabilities
Current portion of long-term debt$30  $—  $—  $—  $30  
Trade and other payables 241  53  (119) 178  
Accrued expenses and other liabilities 168  28  —  203  
Total current liabilities40  409  81  (119) 411  
Noncurrent liabilities
Long-term debt1,151   140  —  1,292  
Employee benefit obligations—  317  16  —  333  
Other noncurrent liabilities33  141   —  176  
Total noncurrent liabilities1,184  459  158  —  1,801  
Commitments and contingencies
Stockholders’ (deficit) equity(358) 801  509  (1,310) (358) 
Total liabilities and stockholders’ deficit / equity$866  $1,669  $748  $(1,429) $1,854  
Condensed Consolidating Statements of Cash Flows
For the year ended September 30, 2019
(In millions)Valvoline Inc.
(Parent Issuer)
Guarantor SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Cash flows (used in) provided by operating activities$(73) $166  $232  $—  $325  
Cash flows from investing activities
Additions to property, plant and equipment—  (90) (18) —  (108) 
Acquisitions, net of cash acquired—  (34) (44) —  (78) 
Other investing activities, net—  —  (2) —  (2) 
Cash flows used in investing activities—  (124) (64) —  (188) 
Cash flows from financing activities
Proceeds from borrowings, net of issuance costs666  —  84  —  750  
Repayments on borrowings(510) —  (224) —  (734) 
Purchase of additional ownership in subsidiary—  —  (1) —  (1) 
Cash dividends paid(80) —  —  —  (80) 
Other financing activities(3) (3) —  —  (6) 
Cash flows provided by (used in) financing activities73  (3) (141) —  (71) 
Effect of currency exchange rate changes on cash, cash equivalents, and restricted cash—  —  (3) —  (3) 
Increase in cash, cash equivalents, and restricted cash—  39  24  —  63  
Cash, cash equivalents, and restricted cash - beginning of year—  20  76  —  96  
Cash, cash equivalents, and restricted cash - end of year$—  $59  $100  $—  $159  
Condensed Consolidating Statements of Cash Flows
For the year ended September 30, 2018
(In millions)Valvoline Inc.
(Parent Issuer)
Guarantor SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Cash flows (used in) provided by operating activities$(57) $390  $(13) $—  $320  
Cash flows from investing activities
Additions to property, plant and equipment—  (88) (5) —  (93) 
Acquisitions, net of cash acquired—  (72) (53) —  (125) 
Other investing activities, net—   —  —   
Return of advance from subsidiary312  —  —  (312) —  
Cash flows provided by (used in) investing activities312  (155) (58) (312) (213) 
Cash flows from financing activities
Proceeds from borrowings, net of issuance costs203  —  101  —  304  
Repayments on borrowings(72) —  (36) —  (108) 
Repurchases of common stock(325) —  —  —  (325) 
Purchase of additional ownership in subsidiary—  —  (15) —  (15) 
Cash dividends paid(58) —  —  —  (58) 
Other financing activities(3) (2) (2) —  (7) 
Other intercompany activity, net—  (312) —  312  —  
Cash flows (used in) provided by financing activities(255) (314) 48  312  (209) 
Effect of currency exchange rate changes on cash, cash equivalents, and restricted cash—  —  (3) —  (3) 
Decrease in cash, cash equivalents and restricted cash—  (79) (26) —  (105) 
Cash, cash equivalents, and restricted cash - beginning of year—  99  102  —  201  
Cash, cash equivalents, and restricted cash - end of year$—  $20  $76  $—  $96  
Condensed Consolidating Statements of Cash Flows
For the year ended September 30, 2017
(In millions)Valvoline Inc.
(Parent Issuer)
Guarantor SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Cash flows provided by (used in) operating activities$97  $(180) $(47) $—  $(130) 
Cash flows from investing activities
Additions to property, plant and equipment—  (64) (4) —  (68) 
Acquisitions, net of cash acquired—  (68) —  —  (68) 
Other investing activities, net—   —  —   
Advance to subsidiary(312) —  —  312  —  
Cash flows used in investing activities(312) (131) (4) 312  (135) 
Cash flows from financing activities
Net transfers from Ashland —  —  —   
Proceeds from borrowings, net of issuance costs395  —  75  —  470  
Repayments on borrowings(90) —  —  —  (90) 
Repurchases of common stock(50) —  —  —  (50) 
Cash dividends paid(40) —  —  —  (40) 
Other intercompany activity, net(5) 317  —  (312) —  
Cash flows provided by financing activities215  317  75  (312) 295  
Effect of currency exchange rate changes on cash and cash equivalents—  —  (1) —  (1) 
Increase in cash, cash equivalents, and restricted cash —   23  —  29  
Cash, cash equivalents, and restricted cash - beginning of year—  93  79  —  172  
Cash, cash equivalents, and restricted cash - end of year$—  $99  $102  $—  $201