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Reportable Segment Information
 12 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
Reportable Segment Information REPORTABLE SEGMENT INFORMATION
During the third quarter of fiscal 2021, the Company realigned its global operations to support its strategic initiatives to transition to a services-driven business. As a result of the realignment, Valvoline now manages its business through the following two reportable segments:
 
•Retail Services - services the passenger car and light truck quick lube market in the United States and Canada with a broad array of preventive maintenance services and capabilities performed through Valvoline’s retail network of Company-operated, independent franchise, and Express Care stores that service vehicles with Valvoline products.

•Global Products - sells engine and automotive products in more than 140 countries and territories to mass market and automotive parts retailers, installers, and commercial customers, including original equipment manufacturers, to service light- and heavy-duty vehicles and equipment.

These segments represent components of the Company for which separate financial information is available that is utilized on a regular basis by the chief operating decision maker in allocating resources and evaluating performance of the business. Adjusted EBITDA is the primary measure used in making these operating decisions, which Valvoline defines as segment operating income adjusted for depreciation and amortization and certain key items impacting comparability.

In connection with the realignment, the Company changed its allocation of certain indirect expenses for such costs to be recognized by each segment based on the estimated utilization of indirect resources. Costs to support corporate functions and certain non-operational and corporate activity that is not directly attributable to a particular segment are not included in the segment operating results regularly utilized by the chief operating decision maker. This activity is separately delineated within Corporate to reconcile to consolidated results.

Prior period segment financial information presented herein has been recast on a basis that is consistent with the realignment of Valvoline’s global operations.
Reportable segment results

The following table presents sales and adjusted EBITDA of each reportable segment for the years ended September 30:

(In millions)202120202019
Sales
Retail Services
$1,221 $883 $822 
Global Products
1,760 1,470 1,568 
Consolidated sales$2,981 $2,353 $2,390 
Adjusted EBITDA
Retail Services
$382 $247 $239 
Global Products
327 309 296 
Total operating segments709 556 535 
Corporate (a)
(75)(61)(57)
Consolidated Adjusted EBITDA634 495 478 
Reconciliation to income before income taxes:
Net interest and other financing expenses(111)(93)(73)
Depreciation and amortization
(92)(66)(61)
Key items: (b)
Net pension and other postretirement plan income (expenses)
126 59 (60)
Net legacy and separation-related income (expenses)24 30 (3)
LIFO (charge) credit(41)15 — 
Business interruption recovery (expenses)3 2 (6)
Compensated absences benefits change— 11 — 
Acquisition and divestiture-related (costs) income
— (2)4 
Restructuring and related expenses
— — (14)
Income before income taxes$543 $451 $265 
(a)Corporate includes the costs of corporate functions and certain other non-operational matters and corporate activity that is not directly attributable to a particular segment.
(b)Key items represent adjustments to U.S. GAAP results and consist of non-operational matters, including pension and other postretirement plan non-service income and remeasurement adjustments, net legacy and separation-related activity, changes in the LIFO inventory reserve, and certain other corporate matters excluded from operating results, which management believes impacts the comparability of operational results between periods.
Disaggregation of revenue

The following table summarizes sales by category for each reportable segment for the years ended September 30:

(In millions)202120202019
Retail Services
Company operations
Oil changes$657 $450 $407 
Non-oil changes205 141 124 
Non-company operations
Franchise fees50 40 43 
Product sales309 252 248 
Total Retail Services$1,221 $883 $822 
Global Products
Lubricants$1,570 $1,287 $1,364 
Antifreeze119 104 121 
Filters13 13 12 
Chemicals and other58 66 71 
Total Global Products$1,760 $1,470 $1,568 

Sales by primary customer channel for the Company’s reportable segments are summarized below for the years ended September 30:

(In millions)202120202019
Retail Services
Company operations$862 $591 $531 
Non-company operations359 292 291 
Total Retail Services1,221 883 822 
Global Products
Do-it-Yourself626 571 558 
Installer and other1,134 899 1,010 
Total Global Products1,760 1,470 1,568 
Consolidated sales$2,981 $2,353 $2,390 

Valvoline did not have a single customer that represented 10% or more of consolidated sales in fiscal 2021, 2020 or 2019.
Sales by reportable segment disaggregated by geographic region are summarized as follows:

(In millions)Retail ServicesGlobal ProductsTotals
Year ended September 30, 2021
North America (a)
$1,221 $1,052 $2,273 
Europe, Middle East and Africa ("EMEA")— 219 219 
Asia Pacific— 358 358 
Latin America (a)
— 131 131 
Total$1,221 $1,760 $2,981 
Year ended September 30, 2020
North America (a)
883$945 $1,828 
EMEA—169 169 
Asia Pacific—273 273 
Latin America (a)
—83 83 
Total$883 $1,470 $2,353 
Year ended September 30, 2019
North America (a)
$822 $994 $1,816 
EMEA — 181 181 
Asia Pacific— 285 285 
Latin America (a)
— 108 108 
Total$822 $1,568 $2,390 
(a)Valvoline includes the United States and Canada in its North America region. Mexico is included within the Latin America region.

Entity-wide disclosures

The following presents sales and net property, plant and equipment by geographic area for the years ended and as of September 30:

Sales from external customers (a)
Property, plant and equipment, net (b)
(In millions)20212020201920212020
United States$2,209 $1,775 $1,766 $700 $512 
International772 578 624 117 101 
Total$2,981 $2,353 $2,390 $817 $613 
(a)Sales are attributed to the geographic area where solutions are delivered.
(b)Property, plant and equipment, net is attributed to the geographic area in which assets physically reside.