
7.	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 for the nine months ended September 30, 2013 and 2012 (in millions):



	2013								2012
	Valero Stockholders’ Equity			Non- controlling Interests		Total Equity			Valero Stockholders’ Equity			Non- controlling Interest			Total Equity
Balance as of beginning of period	$	18,032		$	63	$	18,095		$	16,423		$	22		$	16,445
Net income (loss)	1,432			9		1,441			1,073			(2		)	1,071
Dividends	(342		)	—		(342		)	(263		)	—			(263		)
Stock-based compensation expense	31			—		31			29			—			29
Tax deduction in excess of stock-based compensation expense	31			—		31			16			—			16
Transactions in connection with stock-based compensation plans:
Stock issuances	47			—		47			36			—			36
Stock repurchases	(220		)	—		(220		)	(138		)	—			(138		)
Stock repurchases under buyback program	(396		)	—		(396		)	—			—			—
Separation of retail business	(479		)	—		(479		)	—			—			—
Contributions from noncontrolling interests	—			45		45			—			34			34
Other comprehensive income	134			—		134			156			—			156
Balance as of end of period	$	18,270		$	117	$	18,387		$	17,332		$	54		$	17,386

The noncontrolling interests relate to third-party ownership interests in two 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 for the nine months ended September 30, 2013 and 2012 (in millions):



	2013			2012
	Common Stock	Treasury Stock		Common Stock	Treasury Stock
Balance as of beginning of period	673	(121	)	673	(117	)
Transactions in connection with stock-based compensation plans:
Stock issuances	—	3		—	3
Stock repurchases	—	(5	)	—	(6	)
Stock repurchases under buyback program	—	(9	)	—	—
Balance as of end of period	673	(132	)	673	(120	)

Accumulated Other Comprehensive Income

Changes in accumulated other comprehensive income by component, net of tax, were as follows for the nine months ended September 30, 2013 (in millions):



	Foreign Currency Translation Adjustment			Defined Benefit Pension Items			Gains and (Losses) on Cash Flow Hedges			Total
Balance as of December 31, 2012	$	665		$	(558	)	$	1		$	108
Other comprehensive income (loss) before reclassifications	(87		)	214			(4		)	123
Amounts reclassified from accumulated other comprehensive income (loss)	—			12			(1		)	11
Net other comprehensive income (loss)	(87		)	226			(5		)	134
Separation of retail business	(159		)	—			—			(159		)
Balance as of September 30, 2013	$	419		$	(332	)	$	(4	)	$	83

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



Details about Accumulated Other Comprehensive Income Components	Three Months Ended September 30, 2013			Nine Months Ended September 30, 2013			Affected Line Item in the Statement of Income
Amortization of items related to defined benefit pension plans:
Net actuarial loss	$	(14	)	$	(43	)	(a)
Prior service credit	9			24			(a)
	(5		)	(19		)	Total before tax
	2			7			Tax benefit
	$	(3	)	$	(12	)	Net of tax

Gains on cash flow hedges:
Commodity contracts	$	6		$	1		Cost of sales
	6			1			Total before tax
	(2		)	—			Tax expense
	$	4		$	1		Net of tax

Total reclassifications for the period	$	1		$	(11	)	Net of tax

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(a)	These accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit cost, as further discussed in Note 8. Net periodic benefit cost is reflected in operating expenses and general and administrative expenses.