Supplemental Financial Information

9 Months Ended

Jun. 30, 2021

Supplemental Financial Information [Abstract]

Supplemental Financial Information

SUPPLEMENTAL FINANCIAL INFORMATION

Cash, cash equivalents and restricted cash

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Consolidated Statements of Cash Flows to the Condensed Consolidated Balance Sheets:

(In millions)	June 30 2021		September 30 2020		June 30 2020
Cash and cash equivalents	$	226	$	760	$	751
Restricted cash (a)	2		1		—
Total cash, cash equivalents and restricted cash	$	228	$	761	$	751

(a)Included in Prepaid expenses and other current assets within the Condensed Consolidated Balance Sheets.

Accounts and other receivables

The following table summarizes Valvoline’s accounts and other receivables in the Condensed Consolidated Balance Sheets:

(In millions)	June 30 2021		September 30 2020
Current
Trade	$	469	$	409
Other	16		14
Notes receivable from franchisees (a)	10		13
Receivables, gross	495		436
Allowance for credit losses	(5)		(3)
Receivables, net	$	490	$	433
Non-current (b)
Notes receivable from franchisees (a)	$	3	$	13
Other notes receivable	3		8
Noncurrent notes receivable, gross	6		21
Allowance for losses	(3)		(4)
Noncurrent notes receivable, net	$	3	$	17

(a)Notes receivable from franchisees were primarily issued in fiscal 2020 to provide financial assistance in response to the COVID-19 pandemic. There were no material balances past due as of June 30, 2021.

(b)Included in Other noncurrent assets within the Condensed Consolidated Balance Sheets.

Inventories

Inventories are primarily carried at the lower of cost or net realizable value using the weighted average cost method. In addition, certain lubricants are valued at the lower of cost or market using the LIFO method.

The following table summarizes Valvoline’s inventories in the Condensed Consolidated Balance Sheets:

(In millions)	June 30 2021		September 30 2020
Finished products	$	252	$	195
Raw materials, supplies and work in process	47		30
Reserve for LIFO cost valuation	(52)		(26)
Total inventories, net	$	247	$	199

Revenue recognition

The following table disaggregates the Company’s sales by timing of recognition:

	Three months ended				Nine months ended
	June 30				June 30
(In millions)	2021		2020		2021		2020
Sales at a point in time	$	779	$	508	$	2,110	$	1,673
Franchised revenues transferred over time	13		8		36		28
Total consolidated sales	$	792	$	516	$	2,146	$	1,701