
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 noncontrolling interests, and total equity (in millions):



	Six Months Ended June 30,
	2016									2015
	Valero Stockholders’ Equity			Non- controlling Interests			Total Equity			Valero Stockholders’ Equity			Non- controlling Interests			Total Equity
Balance as of beginning of period	$	20,527		$	827		$	21,354		$	20,677		$	567		$	21,244
Net income	1,309			47			1,356			2,315			18			2,333
Dividends	(564		)	—			(564		)	(409		)	—			(409		)
Stock-based compensation expense	23			—			23			18			—			18
Tax deduction in excess of stock-based compensation expense	—			—			—			27			—			27
Transactions in connection with stock-based compensation plans:
Stock issuances	3			—			3			20			—			20
Stock purchases	(43		)	—			(43		)	(105		)	—			(105		)
Stock purchases under purchase program	(610		)	—			(610		)	(928		)	—			(928		)
Contributions from noncontrolling interests	—			—			—			—			2			2
Distributions to noncontrolling interests	—			(47		)	(47		)	—			(34		)	(34		)
Other comprehensive income (loss)	(69		)	1			(68		)	(162		)	—			(162		)
Balance as of end of period	$	20,576		$	828		$	21,404		$	21,453		$	553		$	22,006

The noncontrolling interests relate to third-party ownership interests in VIEs for which we are the primary beneficiary and therefore consolidate. See Note 9 for information about our consolidated VIEs.

Share Activity

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



	Six Months Ended June 30,
	2016			2015
	Common Stock	Treasury Stock		Common Stock	Treasury Stock
Balance as of beginning of period	673	(200	)	673	(159	)
Transactions in connection with stock-based compensation plans:
Stock issuances	—	1		—	2
Stock purchases	—	(1	)	—	(2	)
Stock purchases under purchase program	—	(11	)	—	(15	)
Balance as of end of period	673	(211	)	673	(174	)

Treasury Stock

We purchase shares of our common stock as authorized under our common stock purchase program and to meet our obligations under employee stock-based compensation plans.

Common Stock Dividends

On July 28, 2016, our board of directors declared a quarterly cash dividend of $0.60 per common share payable on September 8, 2016 to holders of record at the close of business on August 11, 2016.

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,
	2016									2015
	Before- Tax Amount			Tax Expense (Benefit)			Net Amount			Before- Tax Amount			Tax Expense (Benefit)			Net Amount
Foreign currency translation adjustment	$	(202	)	$	—		$	(202	)	$	197		$	—		$	197
Pension and other postretirement benefits:
Amounts reclassified into income related to:
Net actuarial loss	12			5			7			16			6			10
Prior service credit	(9		)	(4		)	(5		)	(10		)	(4		)	(6		)
Net gain on pension and other postretirement benefits	3			1			2			6			2			4
Other comprehensive income (loss)	$	(199	)	$	1		$	(200	)	$	203		$	2		$	201



	Six Months Ended June 30,
	2016									2015
	Before- Tax Amount			Tax Expense (Benefit)			Net Amount			Before- Tax Amount			Tax Expense (Benefit)			Net Amount
Foreign currency translation adjustment	$	(80	)	$	—		$	(80	)	$	(169	)	$	—		$	(169	)
Pension and other postretirement benefits:
Miscellaneous gain arising during the period	—			(8		)	8			—			—			—
Amounts reclassified into income related to:
Net actuarial loss	24			9			15			31			11			20
Prior service credit	(18		)	(7		)	(11		)	(20		)	(7		)	(13		)
Net gain on pension and other postretirement benefits	6			(6		)	12			11			4			7
Other comprehensive income (loss)	$	(74	)	$	(6	)	$	(68	)	$	(158	)	$	4		$	(162	)

Accumulated Other Comprehensive Loss

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



	Foreign Currency Translation Adjustment			Defined Benefit Plans Items			Total
Balance as of December 31, 2015	$	(605	)	$	(328	)	$	(933	)
Other comprehensive income (loss) before reclassifications	(81		)	8			(73		)
Amounts reclassified from accumulated other comprehensive loss	—			4			4
Net other comprehensive income (loss)	(81		)	12			(69		)
Balance as of June 30, 2016	$	(686	)	$	(316	)	$	(1,002	)



	Foreign Currency Translation Adjustment			Defined Benefit Plans Items			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	)