Assets and liabilities of foreign operations are translated at the rate of exchange in effect on the balance
sheet date; income and expenses are translated at the prevailing monthly average rate of exchange. The
related translation adjustments are reflected in accumulated other comprehensive income (loss) in the
stockholders’ equity section of the Consolidated Balance Sheets and in the Consolidated Statements of
Comprehensive Income. The accumulated currency translation adjustment as of December 31, 2014 and
2013 was $51 million and $166 million, respectively. The Company has designated its 6% Eurodenominated
Notes as a hedge of its net investment in Euro-denominated foreign operations and,
accordingly, records the effective portion of gains or losses on this net investment hedge in accumulated
other comprehensive income (loss) as part of currency translation adjustments