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Guarantor Financial Information
3 Months Ended
Dec. 31, 2019
Condensed Financial Information Disclosure [Abstract]  
Guarantor Financial Information GUARANTOR FINANCIAL INFORMATION
The Senior Notes detailed in Note 7 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 wholly-owned “Guarantor Subsidiaries.” Other subsidiaries (the “Non-Guarantor Subsidiaries”) largely represent the international operations of the Company, which do not guarantee the Senior Notes.

The following tables present, on a consolidating basis, the condensed statements of comprehensive income, condensed balance sheets, and condensed 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.

Condensed Consolidating Statements of Comprehensive Income
For the three months ended December 31, 2019
(In millions)Valvoline Inc.
(Parent Issuer)
Guarantor SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Sales$—  $480  $140  $(13) $607  
Cost of sales—  309  100  (13) 396  
Gross profit—  171  40  —  211  
Selling, general and administrative expenses 88  25  —  117  
Net legacy and separation-related income(1) —  —  —  (1) 
Equity and other (income) expenses, net—  (13)  —  (9) 
Operating (loss) income(3) 96  11  —  104  
Net pension and other postretirement plan income—  (9) —  —  (9) 
Net interest and other financing expenses15   —  —  16  
(Loss) income before income taxes(18) 104  11  —  97  
Income tax (benefit) expense (6) 27   —  24  
Equity in net income of subsidiaries(85) (8) —  93  —  
Net income$73  $85  $ $(93) $73  
Total comprehensive income$79  $89  $15  $(104) $79  
Condensed Consolidating Statements of Comprehensive Income
For the three months ended December 31, 2018
(In millions)Valvoline Inc.
(Parent Issuer)
Guarantor SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Sales$—  $440  $132  $(15) $557  
Cost of sales—  293  96  (15) 374  
Gross profit—  147  36  —  183  
Selling, general and administrative expenses 81  21  —  105  
Equity and other (income) expenses, net—  (13)  —  (9) 
Operating (loss) income(3) 79  11  —  87  
Net pension and other postretirement plan income—  (2) —  —  (2) 
Net interest and other financing expenses15    —  17  
(Loss) income before income taxes(18) 80  10  —  72  
Income tax (benefit) expense(5) 20   —  19  
Equity in net income of subsidiaries(66) (6) —  72  —  
Net income$53  $66  $ $(72) $53  
Total comprehensive income$47  $60  $ $(62) $47  
Condensed Consolidating Balance Sheets
As of December 31, 2019
(In millions)Valvoline Inc.
(Parent Issuer)
Guarantor SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Assets
Current assets
Cash and cash equivalents$—  $62  $100  $—  $162  
Accounts receivable, net—  245  300  (150) 395  
Inventories, net—  108  86  —  194  
Prepaid expenses and other current assets 32  10  —  43  
Total current assets 447  496  (150) 794  
Noncurrent assets
Property, plant and equipment, net—  407  72  —  479  
Operating lease assets—  211  42  —  253  
Goodwill and intangibles, net—  425  82  —  507  
Equity method investments—  39  —  —  39  
Investment in subsidiaries1,247  523  —  (1,770) —  
Deferred income taxes55  47  14  —  116  
Other noncurrent assets 97   —  109  
Total noncurrent assets1,305  1,749  219  (1,770) 1,503  
Total assets$1,306  $2,196  $715  $(1,920) $2,297  
Liabilities and Stockholders’ Deficit
Current liabilities
Current portion of long-term debt$22  $—  $—  $—  $22  
Trade and other payables109  96  98  (150) 153  
Accrued expenses and other liabilities18  182  46  —  246  
Total current liabilities149  278  144  (150) 421  
Noncurrent liabilities
Long-term debt1,319   —  —  1,320  
Employee benefit obligations—  359  17  —  376  
Operating lease liabilities—  195  29  —  224  
Other noncurrent liabilities34  116   —  152  
Total noncurrent liabilities1,353  671  48  —  2,072  
Commitments and contingencies
Stockholders’ (deficit) equity(196) 1,247  523  (1,770) (196) 
Total liabilities and stockholders’ deficit / equity$1,306  $2,196  $715  $(1,920) $2,297  
Condensed Consolidating Balance Sheets
As of September 30, 2019
(In millions)Valvoline Inc.
(Parent Issuer)
Guarantor SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Assets
Current assets
Cash and cash equivalents$—  $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 Statements of Cash Flows
For the three months ended December 31, 2019
(In millions)Valvoline Inc.
(Parent Issuer)
Guarantor SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Cash flows provided by operating activities$23  $31  $ $—  $59  
Cash flows from investing activities
Additions to property, plant and equipment—  (21) (7) —  (28) 
Acquisitions, net of cash acquired—  (6) —  —  (6) 
Other investing activities, net—  (1) —  —  (1) 
Cash flows used in investing activities—  (28) (7) —  (35) 
Cash flows from financing activities
Cash dividends paid(21) —  —  —  (21) 
Other financing activities(2) —  —  —  (2) 
Cash flows used in financing activities(23) —  —  —  (23) 
Effect of currency exchange rate changes on cash, cash equivalents, and restricted cash—  —   —   
Increase in cash, cash equivalents, and restricted cash—    —   
Cash, cash equivalents, and restricted cash - beginning of year—  59  100  —  159  
Cash, cash equivalents, and restricted cash - end of period$—  $62  $101  $—  $163  
Condensed Consolidating Statements of Cash Flows
For the three months ended December 31, 2018
(In millions)Valvoline Inc.
(Parent Issuer)
Guarantor SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Cash flows provided by operating activities$13  $29  $43  $—  $85  
Cash flows from investing activities
Additions to property, plant and equipment—  (20) (7) —  (27) 
Acquisitions, net of cash acquired—  (8) (22) —  (30) 
Other investing activities, net—   —  —   
Cash flows used in investing activities—  (27) (29) —  (56) 
Cash flows from financing activities
Proceeds from borrowings, net of issuance costs57  —  43  —  100  
Repayments on borrowings(48) —  (53) —  (101) 
Cash dividends paid(20) —  —  —  (20) 
Other financing activities(2) (1) (1) —  (4) 
Cash flows used in financing activities(13) (1) (11) —  (25) 
Effect of currency exchange rate changes on cash, cash equivalents, and restricted cash—  —  (1) —  (1) 
Increase in cash, cash equivalents, and restricted cash—    —   
Cash, cash equivalents, and restricted cash - beginning of year—  20  76  —  96  
Cash, cash equivalents, and restricted cash - end of period$—  $21  $78  $—  $99