while the company can not predict the duration or the scale of the covid-19 pandemic or the effect it may continue to have on valvoline 's business , results of operations , or liquidity , it is important to share the impact to-date , how the company 's response is progressing and how valvoline 's results and financial condition could be impacted going forward . retail and manufacturing operations as automotive maintenance has generally been deemed essential business during the pandemic , valvoline has substantially maintained its operations and continued to serve its customers to help engines run and keep vehicles reliably on the road . valvoline 's wholly-owned lubricant blending and packaging plants and quick lubes retail service center stores have substantially remained open and operational during the pandemic . over 98 % of valvoline 's system-wide service center stores have remained open during the pandemic to-date . the company remains committed to operating safely and keeping as many of its stores open as possible for the communities they serve . short-term incremental pay and benefit programs , including additional paid sick leave and increased pay rates for hourly and salaried store employees were introduced in quick lubes to recognize team members who continued to service customers throughout pandemic . in response to the abrupt decline in miles driven due to covid-19 restrictions and the resulting significant volume and sales declines in the second half of march and continuing through late april , valvoline responded quickly by flexing store labor at company-owned retail service center stores and adjusting shifts across its lubricant blending and packaging plants and throughout its distribution networks . in china , construction on the lubricants plant resumed after a temporary suspension and was recently completed . remote work arrangements valvoline took global actions designed to help further prevent the spread of covid-19 , including implementing work-from-home arrangements . beginning march 18 , 2020 , employees , other than those in valvoline 's retail service center stores , production and distribution facilities , began working remotely in nearly all locations globally , except china where work-from-home protocols were implemented earlier and substantially ended in march . these remote work arrangements remain in place and have been designed to allow for continued operation of certain business-critical functions , including financial reporting systems and internal control , which have incorporated remote work arrangements using appropriate digital tools . valvoline is continually monitoring the global covid-19 situation and following the white house guidelines supported by covid-19 trend data to make decisions regarding the reopening of corporate offices . valvoline has developed a set of criteria and guidelines that will be used in returning to the office to ensure the safety and well- being of the company 's employees , including social distancing , enhanced cleaning procedures and availability of personal protective equipment . all return-to-office decisions will be made based on the covid-19 trends in the countries , states and locations where the company 's offices are located . liquidity valvoline 's revenues are primarily generated from the sale and service delivery of engine and automotive maintenance products to its customers . accordingly , declines in miles driven as a result of a reduction in the ability or willingness to travel due to the covid-19 pandemic has and is expected to continue to adversely impact valvoline 's volumes and results of operations . miles driven were significantly lower due to the covid-19 pandemic , which is estimated to have impacted most of valvoline 's key markets by late march 2020 and continued during most of april 2020 , with trends steadily improving throughout the remainder of the fiscal year but still below pre-covid-19 levels . while management believes valvoline has sufficient liquidity to meet its operating cash needs , required pension and other postretirement plan contributions , debt servicing obligations , and tax-related and other contractual commitments for the next twelve months , certain precautionary steps were taken as outlined herein to strengthen the company 's cash position in response to the covid-19 pandemic . as a precautionary measure to enhance financial flexibility in response to the uncertainty resulting from the covid-19 pandemic , the company borrowed under its revolving and trade receivables facilities to increase its cash balance by $ 540 million in late march . the company subsequently paid its revolving facility borrowings in may 2020 34 with the net proceeds from the offering of $ 400 million senior notes due 2025 and cash and cash equivalents on hand . as of september 30 , 2020 , valvoline had $ 760 million in cash and cash equivalents available for working capital , general corporate purposes , or other purposes permitted under its borrowing facilities . further , valvoline temporarily suspended its share repurchase program and took other steps to preserve cash , including limiting or deferring certain non-essential operating expenses and delaying certain capital expenditures , while continuing to invest in high-return , long-term strategic growth initiatives . since drawing on its credit facilities in march , the company has maintained its liquidity and generated positive cash flows from operations during the year ended september 30 , 2020. as of september 30 , 2020 , the company has access to more than $ 1.3 billion in total liquidity , with no meaningful maturities of its outstanding borrowings until 2024. covid-19 relief on march 27 , 2020 , the u.s. federal government enacted the coronavirus aid , relief , and economic security act ( the “ cares act ” ) . among other provisions , the cares act includes forms of payroll and income tax relief for corporations . the company continues to examine the impacts the cares act may have on its business and consolidated financial statements and continues to expect modest cash flow benefits in fiscal 2020 and 2021 related to the deferred payment of certain employer payroll-related taxes and accelerated tax deductions . story_separator_special_tag gross profit the following table provides a reconciliation of the changes in gross profit from fiscal 2019 to 2020 : ( in millions ) 2020 change volume and mix $ ( 14 ) price and cost 69 currency exchange ( 3 ) acquisitions 1 change in gross profit $ 53 despite lower volumes , gross profit increased compared to the prior year driven by the benefit of mix improvements in quick lubes and core north america , and lower costs , which included a favorable raw material cost environment , benefits from the cost savings program that began in fiscal 2019 , and the favorable impact from the resumed operations at the company 's second largest domestic blending facility that was temporarily shut down in the prior year due to a nearby third-party fire . the increase in gross profit margin of 2.8 % compared to the prior year period was driven by a more favorable cost structure primarily as a result of the cost savings program and benefits from the raw material and cost environment . 39 the changes to reportable segment gross profit and the drivers thereof are discussed in further detail in “ reportable segment review ” below . net operating expenses the table below provides details of the components of net operating expenses during the years ended september 30 : replace_table_token_8_th the decrease in selling , general and administrative expenses was primarily due to the benefits recognized related to the compensated absences benefits change rolled out during the fourth fiscal quarter of 2020. lower costs in fiscal 2020 related to the substantial completion of restructuring activities associated with the cost savings program commenced in the prior year and lower expenses due to controlled spending , which included reduced travel expenses resulting from the impacts of the covid-19 pandemic , were largely offset by higher incentive compensation-related costs due to improved company performance and an increase in rent expense due to the reclassification of a build-to-suit arrangement in adoption of the lease accounting standard . the decrease in net legacy and separation-related expenses was driven by the reduction of the estimated indemnity obligation under the tax matters agreement related to management 's determination that it is no longer more likely than not to realize certain legacy tax attributes which were transferred from ashland as a result of the contribution . this benefit was offset by a valuation allowance recorded in income tax expense for no net impact to earnings in the fiscal year ended september 30 , 2020. the decrease in equity and other income , net was primarily driven by other income recognized during the prior year related to the bargain purchase gain in connection with the acquisition of an eastern european lubricant production company , incentives for operating in a free trade zone outside the u.s. , and fees associated with the termination of certain contracts , in addition to lower profit contributions from unconsolidated joint ventures as a result of the covid-19 pandemic . these decreases were partially offset by a business interruption recovery received in the fourth fiscal quarter of 2020. net pension and other postretirement plan expense net pension and other postretirement plan expense decreased $ 119 million from the prior year primarily due to a gain on pension and other postretirement plan remeasurement of $ 22 million compared to a loss of $ 69 million in fiscal 2019. this change was primarily attributed to higher than expected returns on plan assets and favorable changes in mortality assumptions , which were partially offset by decreases in discount rates . net interest and other financing expenses net interest and other financing expense increased $ 20 million during fiscal 2020 compared to 2019. the increase was primarily due to the loss on extinguishment in connection with the redemption of the 2024 notes in march 2020 . 40 income tax expense the following summarizes income tax expense and the effective tax rate during the years ended september 30 : replace_table_token_9_th higher income tax expense in fiscal 2020 from the prior year was principally driven by higher pre-tax earnings and income tax expense recognized during the year to establish a $ 30 million valuation allowance on certain legacy tax attributes . this increase in expense coupled with prior year benefits from the release of a valuation allowance and the clarification of certain provisions of kentucky tax reform legislation led to a higher effective tax rate in fiscal 2020. ebitda and adjusted ebitda the following table reconciles net income to ebitda and adjusted ebitda for the years ended september 30 : replace_table_token_10_th ( a ) net pension and other postretirement plan income includes remeasurement gains and losses and recurring non-service pension and other postretirement net periodic income , which consists of interest cost , expected return on plan assets and amortization of prior service credit . refer to note 11 of the notes to consolidated financial statements included in item 8 of part ii of this annual report on form 10-k for further details . the increase in adjusted ebitda of $ 32 million in fiscal 2020 was driven by the performance of core north america , which included product and channel mix benefits and favorable costs , inclusive of lower raw material costs and benefits from the costs savings initiative program , which more than offset lower volumes attributed to the covid-19 pandemic and increased incentive compensation-related costs . 41 reportable segment review valvoline 's business is managed within the following three reportable segments : quick lubes - services the passenger car and light truck quick lube market through company-owned and independent franchised retail quick lube service center stores and independent express care stores that service vehicles with valvoline products , as well as through investment in a joint venture in china to pilot expansion of retail quick lube service center stores outside of north america . core north america - sells engine and automotive maintenance products in the united states and canada to retailers ,

cash flows valvoline 's cash flows as reflected in the consolidated statements of cash flows are summarized as follows for the years ended september 30 : replace_table_token_15_th operating activities the increase in cash flows provided by operating activities during fiscal 2020 compared to 2019 was primarily due to higher cash earnings which was partially offset by an increase in cash paid for income taxes of $ 19 million . investing activities the increase in cash flows used in investing activities for fiscal 2020 compared to 2019 was primarily due to increases in capital expenditures of $ 43 million related to investments in new stores and the blending and packaging plant in china , and the covid-19 relief loans extended to franchisees of approximately $ 30 million , partially offset by lower cash consideration paid for acquisitions of $ 38 million . financing activities the increase in cash flows from financing activities for fiscal 2020 compared to 2019 was primarily driven by the issuance of the 2030 notes and borrowings under the trade receivables facility in response to the covid-19 pandemic to provide enhanced financial flexibility . in addition , share repurchases and transaction costs associated with borrowing activities in fiscal 2020 led to higher cash outflows . free cash flow and other liquidity information the following table sets forth free cash flow for the disclosed periods and reconciles cash flows from operating activities to free cash flow . as previously noted , free cash flow has certain limitations , including that it does not reflect adjustments for certain non-discretionary cash flows , such as mandatory debt repayments . refer to “ use of non-gaap measures ” within this item 7 for additional information regarding this non-gaap measure .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```cash flows valvoline 's cash flows as reflected in the consolidated statements of cash flows are summarized as follows for the years ended september 30 : replace_table_token_15_th operating activities the increase in cash flows provided by operating activities during fiscal 2020 compared to 2019 was primarily due to higher cash earnings which was partially offset by an increase in cash paid for income taxes of $ 19 million . investing activities the increase in cash flows used in investing activities for fiscal 2020 compared to 2019 was primarily due to increases in capital expenditures of $ 43 million related to investments in new stores and the blending and packaging plant in china , and the covid-19 relief loans extended to franchisees of approximately $ 30 million , partially offset by lower cash consideration paid for acquisitions of $ 38 million . financing activities the increase in cash flows from financing activities for fiscal 2020 compared to 2019 was primarily driven by the issuance of the 2030 notes and borrowings under the trade receivables facility in response to the covid-19 pandemic to provide enhanced financial flexibility . in addition , share repurchases and transaction costs associated with borrowing activities in fiscal 2020 led to higher cash outflows . free cash flow and other liquidity information the following table sets forth free cash flow for the disclosed periods and reconciles cash flows from operating activities to free cash flow . as previously noted , free cash flow has certain limitations , including that it does not reflect adjustments for certain non-discretionary cash flows , such as mandatory debt repayments . refer to “ use of non-gaap measures ” within this item 7 for additional information regarding this non-gaap measure .
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 Suspicious Activity Report : while the company can not predict the duration or the scale of the covid-19 pandemic or the effect it may continue to have on valvoline 's business , results of operations , or liquidity , it is important to share the impact to-date , how the company 's response is progressing and how valvoline 's results and financial condition could be impacted going forward . retail and manufacturing operations as automotive maintenance has generally been deemed essential business during the pandemic , valvoline has substantially maintained its operations and continued to serve its customers to help engines run and keep vehicles reliably on the road . valvoline 's wholly-owned lubricant blending and packaging plants and quick lubes retail service center stores have substantially remained open and operational during the pandemic . over 98 % of valvoline 's system-wide service center stores have remained open during the pandemic to-date . the company remains committed to operating safely and keeping as many of its stores open as possible for the communities they serve . short-term incremental pay and benefit programs , including additional paid sick leave and increased pay rates for hourly and salaried store employees were introduced in quick lubes to recognize team members who continued to service customers throughout pandemic . in response to the abrupt decline in miles driven due to covid-19 restrictions and the resulting significant volume and sales declines in the second half of march and continuing through late april , valvoline responded quickly by flexing store labor at company-owned retail service center stores and adjusting shifts across its lubricant blending and packaging plants and throughout its distribution networks . in china , construction on the lubricants plant resumed after a temporary suspension and was recently completed . remote work arrangements valvoline took global actions designed to help further prevent the spread of covid-19 , including implementing work-from-home arrangements . beginning march 18 , 2020 , employees , other than those in valvoline 's retail service center stores , production and distribution facilities , began working remotely in nearly all locations globally , except china where work-from-home protocols were implemented earlier and substantially ended in march . these remote work arrangements remain in place and have been designed to allow for continued operation of certain business-critical functions , including financial reporting systems and internal control , which have incorporated remote work arrangements using appropriate digital tools . valvoline is continually monitoring the global covid-19 situation and following the white house guidelines supported by covid-19 trend data to make decisions regarding the reopening of corporate offices . valvoline has developed a set of criteria and guidelines that will be used in returning to the office to ensure the safety and well- being of the company 's employees , including social distancing , enhanced cleaning procedures and availability of personal protective equipment . all return-to-office decisions will be made based on the covid-19 trends in the countries , states and locations where the company 's offices are located . liquidity valvoline 's revenues are primarily generated from the sale and service delivery of engine and automotive maintenance products to its customers . accordingly , declines in miles driven as a result of a reduction in the ability or willingness to travel due to the covid-19 pandemic has and is expected to continue to adversely impact valvoline 's volumes and results of operations . miles driven were significantly lower due to the covid-19 pandemic , which is estimated to have impacted most of valvoline 's key markets by late march 2020 and continued during most of april 2020 , with trends steadily improving throughout the remainder of the fiscal year but still below pre-covid-19 levels . while management believes valvoline has sufficient liquidity to meet its operating cash needs , required pension and other postretirement plan contributions , debt servicing obligations , and tax-related and other contractual commitments for the next twelve months , certain precautionary steps were taken as outlined herein to strengthen the company 's cash position in response to the covid-19 pandemic . as a precautionary measure to enhance financial flexibility in response to the uncertainty resulting from the covid-19 pandemic , the company borrowed under its revolving and trade receivables facilities to increase its cash balance by $ 540 million in late march . the company subsequently paid its revolving facility borrowings in may 2020 34 with the net proceeds from the offering of $ 400 million senior notes due 2025 and cash and cash equivalents on hand . as of september 30 , 2020 , valvoline had $ 760 million in cash and cash equivalents available for working capital , general corporate purposes , or other purposes permitted under its borrowing facilities . further , valvoline temporarily suspended its share repurchase program and took other steps to preserve cash , including limiting or deferring certain non-essential operating expenses and delaying certain capital expenditures , while continuing to invest in high-return , long-term strategic growth initiatives . since drawing on its credit facilities in march , the company has maintained its liquidity and generated positive cash flows from operations during the year ended september 30 , 2020. as of september 30 , 2020 , the company has access to more than $ 1.3 billion in total liquidity , with no meaningful maturities of its outstanding borrowings until 2024. covid-19 relief on march 27 , 2020 , the u.s. federal government enacted the coronavirus aid , relief , and economic security act ( the “ cares act ” ) . among other provisions , the cares act includes forms of payroll and income tax relief for corporations . the company continues to examine the impacts the cares act may have on its business and consolidated financial statements and continues to expect modest cash flow benefits in fiscal 2020 and 2021 related to the deferred payment of certain employer payroll-related taxes and accelerated tax deductions . story_separator_special_tag gross profit the following table provides a reconciliation of the changes in gross profit from fiscal 2019 to 2020 : ( in millions ) 2020 change volume and mix $ ( 14 ) price and cost 69 currency exchange ( 3 ) acquisitions 1 change in gross profit $ 53 despite lower volumes , gross profit increased compared to the prior year driven by the benefit of mix improvements in quick lubes and core north america , and lower costs , which included a favorable raw material cost environment , benefits from the cost savings program that began in fiscal 2019 , and the favorable impact from the resumed operations at the company 's second largest domestic blending facility that was temporarily shut down in the prior year due to a nearby third-party fire . the increase in gross profit margin of 2.8 % compared to the prior year period was driven by a more favorable cost structure primarily as a result of the cost savings program and benefits from the raw material and cost environment . 39 the changes to reportable segment gross profit and the drivers thereof are discussed in further detail in “ reportable segment review ” below . net operating expenses the table below provides details of the components of net operating expenses during the years ended september 30 : replace_table_token_8_th the decrease in selling , general and administrative expenses was primarily due to the benefits recognized related to the compensated absences benefits change rolled out during the fourth fiscal quarter of 2020. lower costs in fiscal 2020 related to the substantial completion of restructuring activities associated with the cost savings program commenced in the prior year and lower expenses due to controlled spending , which included reduced travel expenses resulting from the impacts of the covid-19 pandemic , were largely offset by higher incentive compensation-related costs due to improved company performance and an increase in rent expense due to the reclassification of a build-to-suit arrangement in adoption of the lease accounting standard . the decrease in net legacy and separation-related expenses was driven by the reduction of the estimated indemnity obligation under the tax matters agreement related to management 's determination that it is no longer more likely than not to realize certain legacy tax attributes which were transferred from ashland as a result of the contribution . this benefit was offset by a valuation allowance recorded in income tax expense for no net impact to earnings in the fiscal year ended september 30 , 2020. the decrease in equity and other income , net was primarily driven by other income recognized during the prior year related to the bargain purchase gain in connection with the acquisition of an eastern european lubricant production company , incentives for operating in a free trade zone outside the u.s. , and fees associated with the termination of certain contracts , in addition to lower profit contributions from unconsolidated joint ventures as a result of the covid-19 pandemic . these decreases were partially offset by a business interruption recovery received in the fourth fiscal quarter of 2020. net pension and other postretirement plan expense net pension and other postretirement plan expense decreased $ 119 million from the prior year primarily due to a gain on pension and other postretirement plan remeasurement of $ 22 million compared to a loss of $ 69 million in fiscal 2019. this change was primarily attributed to higher than expected returns on plan assets and favorable changes in mortality assumptions , which were partially offset by decreases in discount rates . net interest and other financing expenses net interest and other financing expense increased $ 20 million during fiscal 2020 compared to 2019. the increase was primarily due to the loss on extinguishment in connection with the redemption of the 2024 notes in march 2020 . 40 income tax expense the following summarizes income tax expense and the effective tax rate during the years ended september 30 : replace_table_token_9_th higher income tax expense in fiscal 2020 from the prior year was principally driven by higher pre-tax earnings and income tax expense recognized during the year to establish a $ 30 million valuation allowance on certain legacy tax attributes . this increase in expense coupled with prior year benefits from the release of a valuation allowance and the clarification of certain provisions of kentucky tax reform legislation led to a higher effective tax rate in fiscal 2020. ebitda and adjusted ebitda the following table reconciles net income to ebitda and adjusted ebitda for the years ended september 30 : replace_table_token_10_th ( a ) net pension and other postretirement plan income includes remeasurement gains and losses and recurring non-service pension and other postretirement net periodic income , which consists of interest cost , expected return on plan assets and amortization of prior service credit . refer to note 11 of the notes to consolidated financial statements included in item 8 of part ii of this annual report on form 10-k for further details . the increase in adjusted ebitda of $ 32 million in fiscal 2020 was driven by the performance of core north america , which included product and channel mix benefits and favorable costs , inclusive of lower raw material costs and benefits from the costs savings initiative program , which more than offset lower volumes attributed to the covid-19 pandemic and increased incentive compensation-related costs . 41 reportable segment review valvoline 's business is managed within the following three reportable segments : quick lubes - services the passenger car and light truck quick lube market through company-owned and independent franchised retail quick lube service center stores and independent express care stores that service vehicles with valvoline products , as well as through investment in a joint venture in china to pilot expansion of retail quick lube service center stores outside of north america . core north america - sells engine and automotive maintenance products in the united states and canada to retailers ,

