
10.	EQUITY

Share Activity

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



	Common Stock	Treasury Stock
Balance as of December 31, 2013	673	(138	)
Transactions in connection with stock-based compensation plans:
Stock issuances	—	4
Stock purchases	—	(2	)
Stock purchases under purchase program	—	(23	)
Balance as of December 31, 2014	673	(159	)
Transactions in connection with stock-based compensation plans:
Stock issuances	—	4
Stock purchases	—	(3	)
Stock purchases under purchase program	—	(42	)
Balance as of December 31, 2015	673	(200	)
Transactions in connection with stock-based compensation plans:
Stock issuances	—	2
Stock purchases	—	(1	)
Stock purchases under purchase program	—	(23	)
Balance as of December 31, 2016	673	(222	)

Preferred Stock

We have 20 million shares of preferred stock authorized with a par value of $0.01 per share. No shares of preferred stock were outstanding as of December 31, 2016 or 2015.

Treasury Stock

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

On February 28, 2008, our board of directors approved a $3 billion common stock purchase program with no expiration date, and we completed that program during 2015. On July 13, 2015, our board of directors authorized us to purchase an additional $2.5 billion of our outstanding common stock (the 2015 program) with no expiration date. On September 21, 2016, our board of directors authorized our purchase of up to an additional $2.5 billion (the 2016 program) with no expiration date. During the years ended December 31, 2016, 2015, and 2014, we purchased $1.3 billion, $2.7 billion, and $1.2 billion, respectively, of our common stock under our programs. As of December 31, 2016, we have approvals under the 2015 program and the 2016 program to purchase approximately $2.5 billion of our common stock.

Common Stock Dividends

On January 26, 2017, our board of directors declared a quarterly cash dividend of $0.70 per common share payable March 7, 2017 to holders of record at the close of business on February 15, 2017.

Valero Energy Partners LP Units

Effective November 24, 2015, VLP completed a public offering of 4,250,000 common units at a price of $46.25 per unit and received net proceeds from the offering of $189 million after deducting the underwriting discount and other offering costs.

Income Tax Effects Related to Components of Other Comprehensive Loss

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



	Before-Tax Amount			Tax Expense (Benefit)			Net Amount
Year Ended December 31, 2016:
Foreign currency translation adjustment	$	(415	)	$	—		$	(415	)
Pension and other postretirement benefits:
Gain (loss) arising during the year related to:
Net actuarial loss	(110		)	(34		)	(76		)
Miscellaneous gain	—			(8		)	8
Amounts reclassified into income related to:
Net actuarial loss	48			18			30
Prior service credit	(36		)	(13		)	(23		)
Net loss on pension and other postretirement benefits	(98		)	(37		)	(61		)
Other comprehensive loss	$	(513	)	$	(37	)	$	(476	)



Year Ended December 31, 2015:
Foreign currency translation adjustment	$	(606	)	$	—		$	(606	)
Pension and other postretirement benefits:
Gain (loss) arising during the year related to:
Net actuarial gain	50			15			35
Prior service cost	(22		)	(8		)	(14		)
Amounts reclassified into income related to:
Net actuarial loss	62			22			40
Prior service credit	(40		)	(14		)	(26		)
Curtailment and settlement	7			2			5
Net gain on pension and other postretirement benefits	57			17			40
Other comprehensive loss	$	(549	)	$	17		$	(566	)



	Before-Tax Amount			Tax Expense (Benefit)			Net Amount
Year Ended December 31, 2014:
Foreign currency translation adjustment	$	(407	)	$	—		$	(407	)
Pension and other postretirement benefits:
Loss arising during the year related to:
Net actuarial loss	(471		)	(162		)	(309		)
Prior service cost	(1		)	(1		)	—
Amounts reclassified into income related to:
Net actuarial loss	34			12			22
Prior service credit	(40		)	(14		)	(26		)
Curtailment and settlement	3			—			3
Net loss on pension and other postretirement benefits	(475		)	(165		)	(310		)
Derivative instruments designated and qualifying as cash flow hedges:
Net loss arising during the year	(1		)	—			(1		)
Net loss reclassified into income	2			1			1
Net gain on cash flow hedges	1			1			—
Other comprehensive loss	$	(881	)	$	(164	)	$	(717	)

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 Plan Items			Gains and (Losses) on Cash Flow Hedges			Total
Balance as of December 31, 2013	$	408		$	(58	)	$	—		$	350
Other comprehensive loss before reclassifications	(407		)	(309		)	(1		)	(717		)
Amounts reclassified from accumulated other comprehensive income (loss)	—			(1		)	1			—
Net other comprehensive loss	(407		)	(310		)	—			(717		)
Balance as of December 31, 2014	1			(368		)	—			(367		)
Other comprehensive income (loss) before reclassifications	(606		)	21			—			(585		)
Amounts reclassified from accumulated other comprehensive income (loss)	—			19			—			19
Net other comprehensive income (loss)	(606		)	40			—			(566		)
Balance as of December 31, 2015	(605		)	(328		)	—			(933		)
Other comprehensive loss before reclassifications	(416		)	(68		)	—			(484		)
Amounts reclassified from accumulated other comprehensive loss	—			7			—			7
Net other comprehensive loss	(416		)	(61		)	—			(477		)
Balance as of December 31, 2016	$	(1,021	)	$	(389	)	$	—		$	(1,410	)

Gains (losses) reclassified out of accumulated other comprehensive loss and into net income were as follows (in millions):



Details about Accumulated Other Comprehensive Loss Components										Affected Line Item in the Statement of Income
	Year Ended December 31,
	2016			2015			2014
Amortization of items related to defined benefit pension plans:
Net actuarial loss	$	(48	)	$	(62	)	$	(34	)	(a)
Prior service credit	36			40			40			(a)
Curtailment and settlement	—			(7		)	(3		)	(a)
	(12		)	(29		)	3			Total before tax
	5			10			(2		)	Tax (expense) benefit
	$	(7	)	$	(19	)	$	1		Net of tax

Losses on cash flow hedges:
Commodity contracts	$	—		$	—		$	(2	)	Cost of sales
	—			—			(2		)	Total before tax
	—			—			1			Tax benefit
	$	—		$	—		$	(1	)	Net of tax

Total reclassifications for the year	$	(7	)	$	(19	)	$	—		Net of tax

_________________________


(a)	These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost, as further discussed in Note 12. Net periodic benefit cost is reflected in operating expenses and general and administrative expenses.