Equity Method Investments (Tables)

12 Months Ended

Sep. 30, 2021

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments

Summarized financial information for Valvoline’s equity method investments follows as of and for the years ended September 30:

(In millions)	2021		2020
Financial position
Current assets	$	162	$	143
Current liabilities	(89)		(75)
Working capital	73		68
Noncurrent assets	25		26
Noncurrent liabilities	(5)		(8)
Stockholders’ equity	$	93	$	86

(In millions)	2021		2020		2019
Results of operations (a)
Sales	$	375	$	273	$	309
Income from operations	$	60	$	50	$	59
Net income	$	31	$	25	$	24

(a)Includes the results of equity method investments during the Company's period of ownership.

The Company’s transactions with affiliate companies accounted for under the equity method were as follows for the years ended September 30:

(In millions)	2021		2020		2019
Equity income (a)	$	15	$	12	$	12
Distributions received	$	14	$	5	$	9
Royalty income (a)	$	10	$	8	$	9
Sales to (b)	$	33	$	7	$	12
Purchases from (b)	$	14	$	7	$	4

(a)Equity and royalty income from affiliates accounted for under the equity method of accounting are recognized in Equity and other income, net in the Consolidated Statements of Comprehensive Income and are primarily related to the Global Products reportable segment.

(b)Transactions with affiliates accounted for under the equity method of accounting are eliminated commensurate with Valvoline's ownership percentage until realized through sale to an independent third party.

Consolidated Balance Sheets as of September 30:

(In millions)	2021		2020
Accounts receivable (a)	$	13	$	4
Notes receivable (b)	$	—	$	5
Trade and other payables	$	1	$	1

(a)Included in Receivables, net within the Consolidated Balance Sheets.

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