Acquisitions and Divestitures (Tables)

12 Months Ended

Sep. 30, 2021

Business Combinations [Abstract]

Schedule of Aggregate Cash Consideration and Total Assets Acquired and Liabilities Assumed

The following table summarizes the aggregate cash consideration paid and the total assets acquired and liabilities assumed for the years ended September 30:

(In millions)	2021		2020		2019
Inventories	$	3	$	1	$	—
Other current assets	1		—		—
Property, plant and equipment (a)	99		6		19
Operating lease assets	38		1		—
Goodwill (b)	207		17		50
Intangible assets (c)
Reacquired franchise rights (d)	59		20		5
Customer relationships	—		—		6
Trademarks and trade names	—		—		1
Other	3		—		2
Other current liabilities (a)	(9)		(1)		—
Operating lease liabilities	(35)		—		—
Other noncurrent liabilities (a)	(84)		(4)		(1)
Net assets acquired	282		40		82
Bargain purchase gain (e)	—		—		(4)
Consideration transferred	$	282	$	40	$	78

(a)Includes $84 million of finance lease assets in property, plant and equipment and finance lease liabilities of $4 million and $80 million in other current and noncurrent liabilities, respectively, for leases acquired during the year ended September 30, 2021.

(b)Goodwill is generally expected to be deductible for income tax purposes and is primarily attributed to the operational synergies and potential growth expected to result in economic benefits in the respective markets of the acquisitions.

(c)Weighted average amortization period of intangible assets acquired in each period presented above is 10 years.

(d)Prior to the acquisition of former franchise service center stores, Valvoline licensed the right to operate franchised quick lube service centers, including use of the Company’s trademarks and trade name. In connection with these acquisitions, Valvoline reacquired those rights and recognized separate definite-lived reacquired franchise rights intangible assets, which are being amortized on a straight-line basis over the weighted average remaining term of approximately 10 years for the rights reacquired in fiscal 2021 and 2020 and nine years for the rights reacquired in fiscal 2019. The effective settlement of these arrangements resulted in no settlement gain or loss as the contractual terms were at market.

(e)Recorded in Equity and other income, net within the Consolidated Statements of Comprehensive Income.