Stockholders' Equity

12 Months Ended

Sep. 30, 2024

Equity [Abstract]

Stockholders' Equity

STOCKHOLDERS' EQUITY

Modified “Dutch auction” tender offer

During fiscal 2023, Valvoline completed a modified “Dutch auction” tender offer and accepted 27.0 million shares for an aggregate purchase price of $1.024 billion, excluding fees and related expenses. Valvoline incurred $16.4 million in fees and expenses, which included $10.2 million for excise taxes on share repurchases. These costs were recognized within Retained earnings during the year ended September 30, 2023 as costs to repurchase the Company’s common stock. Shares repurchased were retired and returned to the status of authorized, unissued shares.

Accumulated other comprehensive income (loss)

Changes in Accumulated other comprehensive income (loss) by component for fiscal years 2024 and 2023 were as follows: 

(In millions)	Unamortized benefit plan credits		Currency translation adjustments		Changes in fair value of cash flow hedges		Total
Balance as of September 30, 2022	$	15.1	$	(49.7)	$	13.3	$	(21.3)
Other comprehensive income before reclassification (loss)	—		13.1		(22.8)		(9.7)
(Gain) loss reclassified out of accumulated other comprehensive income	(2.2)		30.7		12.7		41.2
Tax benefit (expense)	0.5		(0.1)		2.6		3.0
Balance as of September 30, 2023	13.4		(6.0)		5.8		13.2
Other comprehensive income before reclassification (loss)	—		(0.4)		(10.0)		(10.4)
(Gain) loss reclassified out of accumulated other comprehensive income	(2.1)		4.4		2.3		4.6
Tax benefit	0.4		0.2		1.9		2.5
Balance as of September 30, 2024	$	11.7	$	(1.8)	$	—	$	9.9

Amounts reclassified from Accumulated other comprehensive income (loss) follow for the years ended September 30:

(in millions)	2024		2023		2022
Amortization of pension and other postretirement plan prior service credits (a)	$	(2.1)	$	(2.1)	$	(2.1)
Business disposal (b)	4.4		30.6		—
Loss (gain) on cash flow hedges (c)	2.3		12.7		1.4
Tax effect of reclassifications	2.5		3.0		(3.4)
Total amounts reclassified, net of tax	$	7.1	$	44.2	$	(4.1)

(a)Amortization of unrecognized prior service credits included in net periodic benefit income for pension and other postretirement plans was reported in Net pension and other postretirement plan expense (income) within the Consolidated Statements of Comprehensive Income. The Company releases the income tax effects from Accumulated other comprehensive income as benefit plan credits are amortized into earnings.

(b)Reflects the realization of $4.4 million of currency translation losses included in the net assets held for sale upon completing the sale of a former Global Products business in the first quarter of fiscal 2024. Additionally, includes the realization of $30.7 million in currency translation losses and $0.1 million in unamortized pension prior service credits both recognized within (Loss) income from discontinued operations, net of tax in the Consolidated Statement of Comprehensive Income for fiscal 2023.

(c)Represents the realization of gains from cash flow hedges reported in Net interest and other financing expense within the Consolidated Statements of Comprehensive Income.