Reportable Segment Information (Tables)

9 Months Ended

Jun. 30, 2021

Schedule of Segment Reporting Information

The following table presents sales and adjusted EBITDA for each reportable segment:


(In millions)	Three months ended				Nine months ended
	June 30				June 30
	2021		2020		2021		2020
Sales
Retail Services	$	330	$	199	$	869	$	629
Global Products	462		317		1,277		1,072
Consolidated sales	$	792	$	516	$	2,146	$	1,701

Adjusted EBITDA
Retail Services	$	112	$	54	$	277	$	170
Global Products	81		69		255		218
Total operating segments	193		123		532		388
Corporate (a)	(20)		(24)		(53)		(40)
Consolidated Adjusted EBITDA	173		99		479		348
Reconciliation to income before income taxes:
Net interest and other financing expenses	(17)		(19)		(92)		(73)
Depreciation and amortization	(24)		(17)		(68)		(48)
Key items: (b)
Net pension and other postretirement plan income	14		9		41		27
Net legacy and separation-related expenses	(1)		(1)		(2)		—
LIFO (charge) credit	(17)		7		(26)		12
Business interruption recovery	—		—		3		—
Acquisition and divestiture-related costs	—		—		—		(2)
Restructuring and related expenses	—		—		—		(1)
Income before income taxes	$	128	$	78	$	335	$	263

(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 last-in, first-out ("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 Disaggregated Revenues

The following table summarizes sales by primary customer channel for the Company’s reportable segments:


	Three months ended				Nine months ended
	June 30				June 30
(In millions)	2021		2020		2021		2020
Retail Services
Company operations	$	234	$	139	$	616	$	421
Non-company operations	96		60		253		208
Total Retail Services	330		199		869		629

Global Products
U.S. Do-It-Yourself (DIY)	162		137		439		407
North America installer and other	116		70		316		286
International	184		110		522		379
Total Global Products	462		317		1,277		1,072

Consolidated sales	$	792	$	516	$	2,146	$	1,701

Schedule of Sales Disaggregated by Segment and Geographical Area

Sales by reportable segment disaggregated by geographic market follows:


	Retail Services				Global Products				Total
(In millions)	2021		2020		2021		2020		2021		2020
Three months ended June 30
North America (a)	$	330	$	199	$	278	$	207	$	608	$	406
Europe, Middle East and Africa ("EMEA")	—		—		56		34		56		34
Asia Pacific	—		—		96		65		96		65
Latin America (a)	—		—		32		11		32		11
Totals	$	330	$	199	$	462	$	317	$	792	$	516

Nine months ended June 30
North America (a)	$	869	$	629	$	755	$	693	$	1,624	$	1,322
EMEA	—		—		161		125		161		125
Asia Pacific	—		—		267		193		267		193
Latin America (a)	—		—		94		61		94		61
Totals	$	869	$	629	$	1,277	$	1,072	$	2,146	$	1,701

(a)Valvoline includes the United States and Canada in its North America region. Mexico is included within the Latin America region.