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Discontinued Operations
 12 Months Ended
Sep. 30, 2023
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations DISCONTINUED OPERATIONS AND HELD FOR SALE
Sale of Global Products

Financial results

On July 31, 2022, the Company entered into a definitive agreement to sell Global Products to Aramco. On March 1, 2023, Valvoline completed the sale of Global Products for a cash purchase price of $2.650 billion and recognized a pre-tax gain on the sale of $1.572 billion that was recognized in Income from discontinued operations, net of tax within the Consolidated Statements of Comprehensive Income.
The following table summarizes Income from discontinued operations, net of tax included in the Consolidated Statements of Comprehensive Income for the years ended September 30:

(In millions) 202320222021
Net revenues$1,174.4 $2,695.2 $2,086.7 
Cost of sales924.2 2,134.7 1,540.9 
Gross profit250.2 560.5 545.8 
Selling, general and administrative expenses124.9 304.3 294.7 
Net legacy and separation-related expenses53.7 7.0 — 
Equity and other income, net(14.2)(33.4)(36.3)
Operating income from discontinued operations85.8 282.6 287.4 
Net pension and other postretirement plan expense (income)0.1 (3.4)1.9 
Net interest and other financing expenses4.4 4.6 2.5 
Gain on sale of discontinued operations (a)
(1,571.6)— — 
Income before income taxes - discontinued operations1,652.9 281.4 283.0 
Income tax expense (benefit) (b)
432.6 (33.5)62.8 
Income from discontinued operations, net of tax$1,220.3 $314.9 $220.2 
(a)The gain on sale realized in fiscal 2023 includes the release of Accumulated other comprehensive income of $30.7 million associated with the realization of cumulative translation losses attributed to the Global Products business.
(b)Includes the income tax effects of the gain on sale, which were $424.3 million comprised of current and deferred expense of $335.6 million and $88.7 million, respectively.

A summary of the held for sale assets and liabilities included in the Consolidated Balance Sheet follows as of September 30:

(In millions)2022
Current assets
Cash and cash equivalents$59.0 
Receivables, net524.3 
Inventories, net290.1 
Prepaid expenses and other current assets35.0 
Property, plant and equipment, net257.4 
Goodwill and intangibles, net139.8 
Other noncurrent assets158.6 
Current assets held for sale$1,464.2 
Current liabilities
Trade and other payables$264.9 
Accrued expenses and other liabilities166.9 
Long-term debt30.7 
Other current liabilities76.8 
Current liabilities held for sale$539.3 

Post-closing arrangements

The products used in Valvoline’s service delivery are sourced from Global Products. Valvoline has entered into a long-term supply agreement whereby Valvoline purchases substantially all lubricant and certain ancillary products for its stores from Global Products. Net revenues within the results of Global Products above include product sales to the Company's continuing operations which are considered to be effectively settled at the time of the transaction and have not been eliminated. These transactions total the following for the years ended September 30:
(In millions)202320222021
Net revenues$89.7 $218.1 $143.1 

Valvoline also entered into a Transition Services Agreement with Global Products, effective March 1, 2023, to provide and receive services including information technology, legal, finance, and human resources support for a period not expected to exceed 18 months. The income and costs associated with these services were not material during fiscal 2023.

As part of the Transaction, the Company recognized an estimated obligation of $17.1 million, predominantly within Accrued expenses and other liabilities in the Consolidated Balance Sheet as of September 30, 2023 related to certain pre-closing employee matters reimbursable to the Buyer.

Asset group held for sale

A former Global Products business, whose operations were suspended during fiscal 2022, was classified as held for sale as of September 30, 2023. As a result, the Company recognized a pre-tax impairment loss of $8.1 million, within Other income, net in the Consolidated Statement of Comprehensive Income during the year ended September 30, 2023. The Company completed the sale of this business in the first quarter of fiscal 2024.

A summary of the held for sale assets and liabilities included in the Consolidated Balance Sheet follows as of September 30:

(In millions)2023
Current assets
Cash$4.0 
Prepaid expenses and other current assets0.2 
Reserve on assets held for sale(4.2)
Current assets held for sale
$— 
Current liabilities
Accrued expenses and other liabilities$3.9 
Current liabilities held for sale$3.9