
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):



	Three Months Ended March 31,
	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	964			4			968			828			8			836
Dividends	(206		)	—			(206		)	(133		)	—			(133		)
Stock-based compensation expense	9			—			9			10			—			10
Tax deduction in excess of stock-based compensation expense	15			—			15			25			—			25
Transactions in connection with stock-based compensation plans:
Stock issuances	15			—			15			24			—			24
Stock repurchases	(50		)	—			(50		)	(17		)	—			(17		)
Stock repurchases under buyback program	(287		)	—			(287		)	(209		)	—			(209		)
Contributions from noncontrolling interests	—			2			2			—			—			—
Distributions to public unitholders of Valero Energy Partners LP	—			(5		)	(5		)	—			(1		)	(1		)
Other comprehensive loss	(363		)	—			(363		)	(73		)	—			(73		)
Balance as of end of period	$	20,774		$	568		$	21,342		$	19,915		$	493		$	20,408

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):



	Three Months Ended March 31,
	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 repurchases	—	(1	)	—	—
Stock repurchases under buyback program	—	(5	)	—	(4	)
Balance as of end of period	673	(163	)	673	(140	)

Treasury Stock

During April 2015, we purchased 1.7 million shares of our common stock for $104 million, $76 million of which was purchased under our stock purchase program.

Common Stock Dividends

On April 30, 2015, our board of directors declared a quarterly cash dividend of $0.40 per common share payable on June 10, 2015 to holders of record at the close of business on May 13, 2015.

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):



	Three Months Ended March 31,
	2015									2014
	Before- Tax Amount			Tax Expense (Benefit)			Net Amount			Before- Tax Amount			Tax Expense (Benefit)			Net Amount
Foreign currency translation adjustment	$	(366	)	$	—		$	(366	)	$	(74	)	$	—		$	(74	)
Pension and other postretirement benefits:
Amounts reclassified into income related to:
Net actuarial loss	15			5			10			8			3			5
Prior service credit	(10		)	(3		)	(7		)	(10		)	(3		)	(7		)
Net gain (loss) on pension and other postretirement benefits	5			2			3			(2		)	—			(2		)
Derivative instruments designated and qualifying as cash flow hedges:
Net gain arising during the period	—			—			—			7			2			5
Net gain reclassified into income	—			—			—			(3		)	(1		)	(2		)
Net gain on cash flow hedges	—			—			—			4			1			3
Other comprehensive loss	$	(361	)	$	2		$	(363	)	$	(72	)	$	1		$	(73	)

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	(366		)	—			—		(366		)
Amounts reclassified from accumulated other comprehensive loss	—			3			—		3
Net other comprehensive income (loss)	(366		)	3			—		(363		)
Balance as of March 31, 2015	$	(365	)	$	(365	)	$	—	$	(730	)



	Foreign Currency Translation Adjustment			Defined Benefit Plans Items			Gains and (Losses) on Cash Flow Hedges			Total
Balance as of December 31, 2013	$	408		$	(58	)	$	—		$	350
Other comprehensive income (loss) before reclassifications	(74		)	—			5			(69		)
Amounts reclassified from accumulated other comprehensive income (loss)	—			(2		)	(2		)	(4		)
Net other comprehensive income (loss)	(74		)	(2		)	3			(73		)
Balance as of March 31, 2014	$	334		$	(60	)	$	3		$	277