Employee Benefit Plans (Tables)

12 Months Ended

Sep. 30, 2023

Retirement Benefits [Abstract]

Summary of the Components of Benefit Costs (Income)

The components of pension and other postretirement plans net periodic benefit (income) costs and the assumptions used in this determination are summarized below for the years ended September 30:

(In millions)	Pension benefits									Other postretirement benefits
	2023			2022			2021			2023			2022			2021
Net periodic benefit (income) costs
Interest cost	$	81.8		$	43.0		$	41.2		$	1.2		$	0.7		$	0.7
Expected return on plan assets	(66.9)			(78.6)			(84.0)			—			—			—
Amortization of prior service cost (credit)	0.1			0.1			0.1			(2.2)			(2.2)			(11.9)
Actuarial (gain) loss	(35.0)			49.5			(75.1)			(6.6)			(5.6)			0.8
Net periodic benefit (income) costs	$	(20.0)		$	14.0		$	(117.8)		$	(7.6)		$	(7.1)		$	(10.4)
Weighted-average plan assumptions
Discount rate for interest cost	5.45		%	2.10		%	1.91		%	5.41		%	1.92		%	1.76		%
Expected long-term rate of return on plan assets	4.90		%	4.10		%	4.40		%	—			—			—

Schedule of Amortization of Prior Service Cost (Credit) Recognized in AOCI

The following table summarizes the net periodic benefit income and the amortization of prior service credits recognized during the years ended September 30:

(In millions)	Pension benefits						Other postretirement benefits
	2023		2022		2021		2023		2022		2021
Amortization of prior service credits recognized in Accumulated other comprehensive income	$	(0.1)	$	(0.1)	$	(0.1)	$	2.2	$	2.2	$	11.9
Net periodic benefit loss (income)	(20.0)		14.0		(117.8)		(7.6)		(7.1)		(10.4)
Total pre-tax amount recognized in comprehensive loss (income)	$	(20.1)	$	13.9	$	(117.9)	$	(5.4)	$	(4.9)	$	1.5

Schedule of Changes in Projected Benefit Obligations

Changes in benefit obligations and the fair value of plan assets, as well as key assumptions used to determine the benefit obligations, and the amounts in the Consolidated Balance Sheets for the Company’s pension and other postretirement benefit plans are summarized below as of September 30:

(In millions)	Pension benefits				Other postretirement benefits
	2023		2022		2023		2022
Change in benefit obligations
Benefit obligations as of October 1	$	1,585.2	$	2,132.9	$	30.7	$	38.9
Interest cost	81.8		43.0		$	1.2	0.7
Benefits paid	(130.4)		(128.0)		$	(3.0)	(3.3)
Actuarial gain	(52.7)		(458.3)		$	(6.6)	(5.6)
Transfers in	4.4		0.5		$	—	—
Settlements	(10.2)		(4.9)		$	—	—
Benefit obligations as of September 30	$	1,478.1	$	1,585.2	$	22.3	$	30.7
Change in plan assets
Fair value of plan assets as of October 1	$	1,438.1	$	1,987.0	$	—	$	—
Actual return on plan assets	41.3		(429.5)		$	—	—
Employer contributions	17.8		13.0		$	3.0	3.3
Benefits paid	(130.4)		(128.0)		$	(3.0)	(3.3)
Settlements	(10.2)		(4.9)		$	—	—
Transfers in	4.4		0.5		$	—	—
Fair value of plan assets as of September 30	$	1,361.0	$	1,438.1	$	—	$	—
Unfunded status of the plans as of September 30	$	117.1	$	147.1	$	22.3	$	30.7

(In millions)	Pension benefits						Other postretirement benefits
	2023			2022			2023			2022
Amounts in the Consolidated Balance Sheets
Noncurrent benefit assets (a)	$	38.6		$	33.7		$	—		$	—
Current benefit liabilities (b)	7.7			9.1			2.6			4.4
Noncurrent benefit liabilities (c)	148.0			171.7			19.7			26.3
Total benefit liabilities	155.7			180.8			22.3			30.7
Net liabilities recognized	$	117.1		$	147.1		$	22.3		$	30.7
Balance in Accumulated other comprehensive loss
Prior service cost (credit)	$	1.1		$	1.2		$	(16.7)		$	(18.9)
Weighted-average plan assumptions
Discount rate	5.98		%	5.58		%	5.98		%	5.56		%
Healthcare cost trend rate (d)	—			—			5.5		%	5.6		%

(a)Noncurrent benefit assets are recorded in Other noncurrent assets within the Consolidated Balance Sheets,

(b)Current benefit liabilities are recorded in Accrued expenses and other liabilities within the Consolidated Balance Sheets.

(c)Noncurrent benefit liabilities are recorded in Employee benefit obligations within the Consolidated Balance Sheets.

(d)The assumed pre-65 health care cost trend rate continues to be reduced to 4.0% in 2040 and thereafter.

Schedule of Pension Plans with a Benefit Obligation in Excess of Plan Assets

Pension plans with projected and accumulated benefit obligations in excess of the fair value of plan assets follows for the Company’s plans as of September 30:

(In millions)	2023				2022
	Benefit obligation		Plan assets		Benefit obligation		Plan assets
Plans with projected and accumulated benefit obligations in excess of plan assets	$	1,101.7	$	946.0	$	1,177.7	$	996.9

Schedule of Investment Categories for Pension Plan Assets

Pension plan asset investments and their level within the fair value hierarchy is summarized below as of:

(In millions)	September 30, 2023
	Total fair value		Level 1		Level 2		Level 3		Assets measured at NAV
Cash and cash equivalents	$	21.5	$	21.5	$	—	$	—	$	—
U.S. government securities and futures	63.1		—		63.1		—		—
Other government securities	33.1		—		33.1		—		—
Corporate debt instruments	1,055.4		—		1,055.4		—		—
Private equity and hedge funds	4.4		—		—		—		4.4
Collective trust funds	176.9		—		—		—		176.9
Other investments	6.6		—		6.6		—		—
Total assets at fair value	$	1,361.0	$	21.5	$	1,158.2	$	—	$	181.3

(In millions)	September 30, 2022
	Total fair value		Level 1		Level 2		Level 3		Assets measured at NAV
Cash and cash equivalents	$	56.9	$	56.9	$	—	$	—	$	—
U.S. government securities and futures	73.8		—		73.8		—		—
Other government securities	36.1		—		36.1		—		—
Corporate debt instruments	1,066.9		—		1,066.9		—		—
Private equity and hedge funds	13.3		—		—		—		13.3
Collective trust funds	190.3		—		—		—		190.3
Other investments	0.8		—		0.8		—		—
Total assets at fair value	$	1,438.1	$	56.9	$	1,177.6	$	—	$	203.6

Schedule of Investments Measured at Fair Value Using NAV Per Share

The following summarizes investments for which fair value is measured using the NAV per share practical expedient as of September 30, 2023:

(In millions)	Fair value at NAV		Unfunded commitments		Redemption frequency (if currently eligible)	Redemption notice period
Relative value hedge funds	$	0.2	—		None (a)	None (a)
Event driven hedge funds	0.3		—		None (a)	None (a)
Collective trust funds	176.9		—		Daily	Up to 3 days
Private equity	3.9		1.6		None (b)	None (b)
	$	181.3	$	1.6

(a)These hedge funds are in the process of liquidation and the timing is unknown.

(b)These private equity instruments are estimated to be liquidated over the next 1 to 5 years.

Schedule of Weighted-Average Asset Allocations And Plan Asset Allocations

The weighted-average asset allocations for Valvoline’s plans by asset category follow as of September 30:

	Target	2023		2022
Plan assets allocation
Equity securities	3-10%	7	%	7	%
Debt securities	80-100%	92	%	92	%
Other	0-10%	1	%	1	%
Total		100	%	100	%

Schedule of Expected Benefit Payments

The following benefit payments, which reflect future service expectations, are projected to be paid in each of the next five fiscal years ended September 30 and the five fiscal years thereafter in aggregate:

(In millions)	Pension benefits		Other postretirement benefits
2024	$	139.5	$	2.7
2025	137.8		2.4
2026	135.6		2.2
2027	133.3		2.0
2028	129.5		1.9
2028 - 2032	600.0		8.7
Total	$	1,275.7	$	19.9