Business Combinations (Tables)

12 Months Ended

Sep. 30, 2023

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)	2023		2022		2021
Inventories	$	0.4	$	—	$	2.8
Other current assets	—		0.2		0.1
Property, plant and equipment (a)	6.4		10.0		98.6
Operating lease assets	9.7		9.6		36.4
Goodwill (b)	29.0		39.1		204.4
Intangible assets (c)
Reacquired franchise rights (d)	4.0		2.8		58.6
Customer relationships	—		—		0.1
Other	0.3		0.4		3.1
Other current liabilities	(0.7)		(0.8)		(8.3)
Operating lease liabilities	(9.1)		(8.9)		(33.5)
Other noncurrent liabilities (a)	(3.7)		(1.7)		(80.6)
Total net assets acquired	$	36.3	$	50.7	$	281.7

(a)Includes finance lease assets in Property, plant and equipment and finance lease liabilities in Other current and noncurrent liabilities. During the years ended September 30, 2023, 2022 and 2021, finance lease assets acquired were $3.8 million, $1.8 million and $84.3 million, respectively; finance lease liabilities in Other current liabilities were $0.2 million, $0.1 million and $3.7 million, respectively; and finance lease liabilities in Other noncurrent liabilities were $3.7 million, $1.7 million and $80.6 million, respectively.

(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 is 9 years for fiscal 2023 and fiscal 2022 and 10 years for fiscal 2021.

(d)Prior to the acquisition of former franchise service center stores, Valvoline licensed the right to operate franchised 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 9 years for fiscal 2023 and 10 years for fiscal 2022 and fiscal 2021. The effective settlement of these arrangements resulted in no settlement gain or loss as the contractual terms were at market.