
6.	EQUITY

Reconciliation of Balances

The following is a reconciliation of the beginning and ending balances of equity attributable to our stockholders, equity attributable to the noncontrolling interests, and total equity (in millions):



	Six Months Ended June 30,
	2015									2014
	Valero Stockholders’ Equity			Non- controlling Interests			Total Equity			Valero Stockholders’ Equity			Non- controlling Interests			Total Equity
Balance as of beginning of period	$	20,677		$	567		$	21,244		$	19,460		$	486		$	19,946
Net income	2,315			18			2,333			1,416			13			1,429
Dividends	(409		)	—			(409		)	(266		)	—			(266		)
Stock-based compensation expense	18			—			18			21			—			21
Tax deduction in excess of stock-based compensation expense	27			—			27			31			—			31
Transactions in connection with stock-based compensation plans:
Stock issuances	20			—			20			32			—			32
Stock purchases	(105		)	—			(105		)	(76		)	—			(76		)
Stock purchases under repurchase program	(928		)	—			(928		)	(483		)	—			(483		)
Contributions from noncontrolling interests	—			2			2			—			14			14
Distributions to noncontrolling interests	—			(34		)	(34		)	—			(4		)	(4		)
Other comprehensive income (loss)	(162		)	—			(162		)	76			—			76
Balance as of end of period	$	21,453		$	553		$	22,006		$	20,211		$	509		$	20,720

The noncontrolling interests relate to third-party ownership interests in VLP and joint venture companies whose financial statements we consolidate due to our controlling interests.

Share Activity

Activity in the number of shares of common stock and treasury stock was as follows (in millions):



	Six Months Ended June 30,
	2015			2014
	Common Stock	Treasury Stock		Common Stock	Treasury Stock
Balance as of beginning of period	673	(159	)	673	(138	)
Transactions in connection with stock-based compensation plans:
Stock issuances	—	2		—	2
Stock purchases	—	(2	)	—	(1	)
Stock purchases under repurchase program	—	(15	)	—	(7	)
Balance as of end of period	673	(174	)	673	(144	)

Treasury Stock

On July 13, 2015, our board of directors authorized our repurchase of an additional $2.5 billion of our outstanding common stock with no expiration date.

Common Stock Dividends

On July 13, 2015, our board of directors declared a quarterly cash dividend of $0.40 per common share payable on September 2, 2015 to holders of record at the close of business on August 4, 2015.

Income Tax Effects Related to Components of Other Comprehensive Income (Loss)

The tax effects allocated to each component of other comprehensive income (loss) were as follows (in millions):



	Three Months Ended June 30,
	2015									2014
	Before- Tax Amount			Tax Expense (Benefit)			Net Amount			Before- Tax Amount			Tax Expense (Benefit)			Net Amount
Foreign currency translation adjustment	$	197		$	—		$	197		$	150		$	—		$	150
Pension and other postretirement benefits:
Amounts reclassified into income related to:
Net actuarial loss	16			6			10			9			3			6
Prior service credit	(10		)	(4		)	(6		)	(9		)	(5		)	(4		)
Net gain on pension and other postretirement benefits	6			2			4			—			(2		)	2
Derivative instruments designated and qualifying as cash flow hedges:
Net loss arising during the period	—			—			—			(3		)	—			(3		)
Net loss on cash flow hedges	—			—			—			(3		)	—			(3		)
Other comprehensive income	$	203		$	2		$	201		$	147		$	(2	)	$	149



	Six Months Ended June 30,
	2015									2014
	Before- Tax Amount			Tax Expense (Benefit)			Net Amount			Before- Tax Amount			Tax Expense (Benefit)			Net Amount
Foreign currency translation adjustment	$	(169	)	$	—		$	(169	)	$	76		$	—		$	76
Pension and other postretirement benefits:
Amounts reclassified into income related to:
Net actuarial loss	31			11			20			17			6			11
Prior service credit	(20		)	(7		)	(13		)	(19		)	(8		)	(11		)
Net gain (loss) on pension and other postretirement benefits	11			4			7			(2		)	(2		)	—
Derivative instruments designated and qualifying as cash flow hedges:
Net gain arising during the period	—			—			—			4			2			2
Net gain reclassified into income	—			—			—			(3		)	(1		)	(2		)
Net gain on cash flow hedges	—			—			—			1			1			—
Other comprehensive income (loss)	$	(158	)	$	4		$	(162	)	$	75		$	(1	)	$	76

Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss) by component, net of tax, were as follows (in millions):



	Foreign Currency Translation Adjustment			Defined Benefit Plans Items			Gains and (Losses) on Cash Flow Hedges		Total
Balance as of December 31, 2014	$	1		$	(368	)	$	—	$	(367	)
Other comprehensive loss before reclassifications	(169		)	—			—		(169		)
Amounts reclassified from accumulated other comprehensive loss	—			7			—		7
Net other comprehensive income (loss)	(169		)	7			—		(162		)
Balance as of June 30, 2015	$	(168	)	$	(361	)	$	—	$	(529	)



Balance as of December 31, 2013	$	408	$	(58	)	$	—		$	350
Other comprehensive income before reclassifications	76		—			2			78
Amounts reclassified from accumulated other comprehensive income	—		—			(2		)	(2		)
Net other comprehensive income	76		—			—			76
Balance as of June 30, 2014	$	484	$	(58	)	$	—		$	426