Table of Contents Credit Rating Foreign Exchange Our current long-term credit ratings are BBB-/Negative Outlook, Baa3/Stable Outlook and BBB(Low)/Negative Outlook with Standard & Poor's, Moody's and DBRS, respectively. Our short-term credit ratings are A-3, Prime-3 and R-2(low), respectively. A securities rating is not a recommendation to buy, sell or hold securities, and it may be revised or withdrawn at any time by the applicable rating agency. Foreign exchange risk is inherent in our operations primarily due to the significant operating results that are denominated in currencies other than USD. Our approach is to reduce the volatility of cash flows and reported earnings which result from currency fluctuations rather than business related factors. Therefore, we closely monitor our operations in each country and seek to adopt appropriate strategies that are responsive to foreign currency fluctuations. Our financial risk management policy is intended to offset a portion of the potentially unfavorable impact of exchange rate changes on net income and earnings per share. See Part II—Item 8 Financial Statements and Supplementary Data,  Note 16, "Derivative Instruments and Hedging Activities"  for additional information on our financial risk management strategies. Our consolidated financial statements are presented in USD, which is our reporting currency. Assets and liabilities recorded in foreign currencies that are the functional currencies for the respective operations are translated at the prevailing exchange rate at the balance sheet date. Translation adjustments resulting from this process are reported as a separate component of other comprehensive income. Revenue and expenses are translated at the average exchange rates during the respective period throughout the year. Gains and losses from foreign currency transactions are included in earnings for the period. The significant exchange rates to the USD used in the preparation of our consolidated financial results for the primary foreign currencies used in our foreign operations (functional currency) are as follows: The weighted-average exchange rates in the above table have been calculated based on the average of the foreign exchange rates during the relevant period and have been weighted according to the foreign denominated earnings from operations of the USD equivalent. If foreign currencies in the countries in which we operate devalue significantly in future periods, most significantly the CAD, GBP, EUR and other European operating currencies included in the above table, then the impact on USD reported earnings may be material. 56 For the years ended December 31, 2020 December 31, 2019 December 31, 2018 Weighted-Average Exchange Rate (1 USD equals) Canadian dollar (CAD) 1.32  1.32  1.30  Euro (EUR) 0.85  0.89  0.84  British pound (GBP) 0.78  0.79  0.77  Czech Koruna (CZK) 23.11  22.78  21.93  Croatian Kuna (HRK) 6.50  6.60  6.32  Serbian Dinar (RSD) 100.14  104.81  99.74  Romanian Leu (RON) 4.19  4.26  4.00  Bulgarian Lev (BGN) 1.67  1.74  1.67  Hungarian Forint (HUF) 303.65  292.42  267.65  As of December 31, 2020 December 31, 2019 Closing Exchange Rate (1 USD equals) Canadian dollar (CAD) 1.27  1.30  Euro (EUR) 0.82  0.89  British pound (GBP) 0.73  0.75  Czech Koruna (CZK) 21.47  22.70  Croatian Kuna (HRK) 6.18  6.63  Serbian Dinar (RSD) 96.34  104.93  Romanian Leu (RON) 3.98  4.27  Bulgarian Lev (BGN) 1.60  1.74  Hungarian Forint (HUF) 296.94  295.21 