Reportable Segment Information (Tables)

12 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Schedule of Reportable Segment Information

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

(In millions)	2021		2020		2019
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 segments	709		556		535
Corporate (a)	(75)		(61)		(57)
Consolidated Adjusted EBITDA	634		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.

Schedule of Sales by Product Category

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

(In millions)	2021		2020		2019
Retail Services
Company operations
Oil changes	$	657	$	450	$	407
Non-oil changes	205		141		124
Non-company operations
Franchise fees	50		40		43
Product sales	309		252		248
Total Retail Services	$	1,221	$	883	$	822
Global Products
Lubricants	$	1,570	$	1,287	$	1,364
Antifreeze	119		104		121
Filters	13		13		12
Chemicals and other	58		66		71
Total Global Products	$	1,760	$	1,470	$	1,568

Schedule of Disaggregated Revenues

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

(In millions)	2021		2020		2019
Retail Services
Company operations	$	862	$	591	$	531
Non-company operations	359		292		291
Total Retail Services	1,221		883		822
Global Products
Do-it-Yourself	626		571		558
Installer and other	1,134		899		1,010
Total Global Products	1,760		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.

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Schedule of Sales Disaggregated by Segment and Geographical Area

Sales by reportable segment disaggregated by geographic region are summarized as follows:

(In millions)	Retail Services		Global Products		Totals
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.

Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas

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)	2021		2020		2019		2021		2020
United States	$	2,209	$	1,775	$	1,766	$	700	$	512
International	772		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.