15.    Subsequent Events

In February 2015, the Venezuelan government announced the introduction of a modified three-tier exchange control system which consists of CENCOEX, SICAD, and a third new mechanism called the Marginal Currency System, or SIMADI. The SICAD II exchange mechanism will no longer operate. On February 12, 2015, the SIMADI exchange mechanism opened at a rate of 170 Bolivars per U.S. dollar as published by the Venezuelan government. SIMADI is expected to operate as a free currency exchange market.

The Company is currently evaluating and monitoring the development of this new three-tier exchange control system and will determine the appropriate exchange rate for remeasurement purposes in the first quarter of 2015. Assuming the Company switches from the SICAD II rate to the SIMADI rate for remeasurement purposes in the first quarter of 2015, it expects to initially incur approximately $35 million of foreign exchange losses and asset impairment charges. If the SIMADI rate is adopted during the first quarter of 2015, the amount of foreign exchange losses and other charges recognized during the first quarter of 2015 will be determined based on the Company’s latest available facts and circumstances as of March 31, 2015. The Company will continue to monitor this new three-tier exchange control system and assess the financial impact it could have to the Company’s consolidated financial statements and operations in Venezuela.