
11.	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, 2015	673	(200	)
Transactions in connection with stock-based compensation plans	—	1
Stock purchases under purchase program	—	(23	)
Balance as of December 31, 2016	673	(222	)
Transactions in connection with stock-based compensation plans	—	1
Stock purchases under purchase programs	—	(19	)
Balance as of December 31, 2017	673	(240	)
Stock purchases under purchase programs	—	(16	)
Balance as of December 31, 2018	673	(256	)

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, 2018 or 2017.

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 July 13, 2015, our board of directors authorized us to purchase $2.5 billion of our outstanding common stock with no expiration date, and we completed that program during 2017. On September 21, 2016, our board of directors authorized our purchase of up to an additional $2.5 billion with no expiration date, and we completed that program during 2018. On January 23, 2018, our board of directors authorized our purchase of up to an additional $2.5 billion (the 2018 Program) with no expiration date. During the years ended December 31, 2018, 2017, and 2016, we purchased $1.5 billion, $1.3 billion, and $1.3 billion, respectively, of our common stock under our programs. As of December 31, 2018, we have approval under the 2018 Program to purchase approximately $2.2 billion of our common stock.

Common Stock Dividends

On January 24, 2019, our board of directors declared a quarterly cash dividend of $0.90 per common share payable on March 5, 2019 to holders of record at the close of business on February 13, 2019.

Valero Energy Partners LP Units

On September 16, 2016, VLP entered into an equity distribution agreement pursuant to which VLP offered and sold from time to time their common units having an aggregate offering price of up to $350 million based on amounts, at prices, and on terms determined by market conditions and other factors at the time of the offerings (such continuous offering program, or at-the-market program, referred to as the “ATM Program”). There were no issuances of common units under the ATM Program during the year ended December 31, 2018. VLP issued 742,897 and 223,083 common units under the ATM Program and received net proceeds of $35 million and $9 million after deducting offering costs during the years ended December 31, 2017 and 2016, respectively. Simultaneous with the Merger Transaction as described in Note 2, the ATM Program was terminated.

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):



	Before-Tax Amount			Tax Expense (Benefit)			Net Amount
Year Ended December 31, 2018:
Foreign currency translation adjustment	$	(517	)	$	—		$	(517	)
Pension and other postretirement benefits:
Gain arising during the year related to:
Net actuarial gain	1			—			1
Prior service credit	7			1			6
Amounts reclassified into income related to:
Net actuarial loss	63			14			49
Prior service credit	(29		)	(7		)	(22		)
Curtailment and settlement loss	7			2			5
Net gain on pension and other postretirement benefits	49			10			39
Other comprehensive loss	$	(468	)	$	10		$	(478	)



	Before-Tax Amount			Tax Expense (Benefit)			Net Amount
Year Ended December 31, 2017:
Foreign currency translation adjustment	$	514		$	—		$	514
Pension and other postretirement benefits:
Loss arising during the year related to:
Net actuarial loss	(79		)	(29		)	(50		)
Prior service cost	(4		)	(1		)	(3		)
Miscellaneous loss	—			3			(3		)
Amounts reclassified into income related to:
Net actuarial loss	50			18			32
Prior service credit	(36		)	(13		)	(23		)
Curtailment and settlement loss	4			1			3
Net loss on pension and other postretirement benefits	(65		)	(21		)	(44		)
Other comprehensive income	$	449		$	(21	)	$	470



Year Ended December 31, 2016:
Foreign currency translation adjustment	$	(415	)	$	—		$	(415	)
Pension and other postretirement benefits:
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	)

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 Plan Items			Total
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
Other comprehensive loss	(416		)	(61		)	(477		)
Balance as of December 31, 2016	(1,021		)	(389		)	(1,410		)
Other comprehensive income (loss) before reclassifications	514			(56		)	458
Amounts reclassified from accumulated other comprehensive loss	—			12			12
Other comprehensive income (loss)	514			(44		)	470
Balance as of December 31, 2017	(507		)	(433		)	(940		)
Other comprehensive income (loss) before reclassifications	(515		)	7			(508		)
Amounts reclassified from accumulated other comprehensive loss	—			32			32
Other comprehensive income (loss)	(515		)	39			(476		)
Reclassification of stranded income tax effects of Tax Reform to retained earnings per ASU 2018-02 (see Note 1)	—			(91		)	(91		)
Balance as of December 31, 2018	$	(1,022	)	$	(485	)	$	(1,507	)

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,
	2018			2017			2016
Amortization of items related to defined benefit pension plans:
Net actuarial loss	$	(63	)	$	(50	)	$	(48	)	(a) Other income, net
Prior service credit	29			36			36			(a) Other income, net
Curtailment and settlement	(7		)	(4		)	—			(a) Other income, net
	(41		)	(18		)	(12		)	Total before tax
	9			6			5			Tax benefit
Total reclassifications for the year	$	(32	)	$	(12	)	$	(7	)	Net of tax

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(a)	These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost (credit), as discussed in Note 13.