Fair Value Measurements (Tables)

9 Months Ended

Jun. 30, 2023

Schedule of Assets and Liabilities at Fair Value

The following tables set forth the Company’s financial assets and liabilities by level within the fair value hierarchy for those measured at fair value on a recurring basis:


	As of June 30, 2023
(In millions)	Total		Level 1		Level 2		Level 3		NAV (a)
Cash and cash equivalents
Money market funds	$	1.4	$	1.4	$	—	$	—	$	—
Time deposits	277.5		—		277.5		—		—

Prepaid expenses and other current assets
Currency derivatives (b)	0.3		—		0.3		—		—


Other noncurrent assets
Non-qualified trust funds	2.8		—		—		—		2.8
Interest rate swap agreements (c)	9.8		—		9.8		—		—
Deferred compensation investments	19.4		19.4		—		—		—
Total assets at fair value	$	311.2	$	20.8	$	287.6	$	—	$	2.8

Accrued expenses and other liabilities
Currency derivatives (b)	$	0.1	$	—	$	0.1	$	—	$	—

Other noncurrent liabilities
Deferred compensation obligations	20.2		—		—		—		20.2
Total liabilities at fair value	$	20.3	$	—	$	0.1	$	—	$	20.2


	As of September 30, 2022
(In millions)	Total		Level 1		Level 2		Level 3		NAV (a)
Cash and cash equivalents
Money market funds	$	0.4	$	0.4	$	—	$	—	$	—
Time deposits	13.3		—		13.3		—		—
Prepaid expenses and other current assets
Currency derivatives (b)	6.0		—		6.0		—		—
Interest rate swap agreements	5.2		—		5.2		—		—
Other noncurrent assets
Non-qualified trust funds	6.4		—		—		—		6.4
Interest rate swap agreements	12.6		—		12.6		—		—
Total assets at fair value	$	43.9	$	0.4	$	37.1	$	—	$	6.4

Accrued expenses and other liabilities
Currency derivatives (b)	$	5.2	$	—	$	5.2	$	—	$	—

Other noncurrent liabilities
Deferred compensation obligations	19.6		—		—		—		19.6
Total liabilities at fair value	$	24.8	$	—	$	5.2	$	—	$	19.6

(a)Funds measured at fair value using the net asset value ("NAV") per share practical expedient have not been classified in the fair value hierarchy.

(b)The Company had outstanding contracts with notional values of $27.1 million and $150.5 million as of June 30, 2023 and September 30, 2022, respectively.

(c)An interest rate swap agreement with a notional amount of $75.0 million matured during the three months ended June 30, 2023. Valvoline remains party to three interest rate swap agreements with notional amounts that aggregate to $275.0 million as of June 30, 2023.

Summary of Fair Value of Debt


	June 30, 2023
(In millions)	Amortized cost		Gross unrealized losses		Fair value
Cash and cash equivalents
U.S. treasuries (a)	$	19.9	$	—	$	19.9
Short-term investments
U.S. treasuries (b)	$	424.1	$	(0.9)	$	423.2


	June 30, 2023						September 30, 2022
(In millions)	Fair value		Carrying value (a)		Unamortized discounts and issuance costs		Fair value		Carrying value (a)		Unamortized discounts and issuance costs
2030 Notes	$	590.1	$	594.3	$	(5.7)	$	568.5	$	593.7	$	(6.3)
2031 Notes	438.6		529.7		(5.3)		400.5		529.2		(5.8)
Total	$	1,028.7	$	1,124.0	$	(11.0)	$	969.0	$	1,122.9	$	(12.1)

(a)Carrying values shown are net of unamortized discounts and debt issuance costs.