Income Tax - Valuation Allowances on Deferred Tax Assets As described in Notes 1 and 17 to the consolidated financial statements, the Company’s consolidated net deferred tax assets of $113 million includes valuation allowances of $266 million, primarily related to the deferred tax assets established for U.S. foreign tax credit carryforwards of $29.1 million, foreign capital loss carryforwards of $102.6 million, and other foreign deferred tax assets of $134.7 million. Management records valuation allowances to reduce the carrying value of deferred tax assets to amounts that are more likely than not to be realized. Management assesses existing deferred tax assets, net operating losses and tax credits by jurisdiction and expectations of the Company’s ability to utilize these tax attributes through a review of past, current and estimated future taxable income and establishment of tax planning strategies. The principal considerations for our determination that performing procedures relating to the income tax valuation allowances on deferred tax assets is a critical audit matter are there was significant judgment by management when estimating future taxable income, including tax planning strategies. This in turn led to a high degree of auditor judgment, subjectivity and effort in performing procedures and in evaluating audit evidence relating to future taxable income, including tax planning strategies and application of foreign tax regulations. In addition, the audit effort involved the use of professionals with specialized skill and knowledge to assist in performing these procedures and evaluating the audit evidence obtained. Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the valuation allowances on deferred tax assets, including controls over the review of management’s analysis by jurisdiction of cumulative taxable income (loss) and controls over management’s estimate by jurisdiction of future taxable income. Our procedures also included, among others, (i) testing underlying historical data used in calculating the cumulative taxable income (loss), (ii) assessing the effect of other events, such as past Company transactions, and (iii) testing management’s estimate of future taxable income, which included evaluating the reasonableness of significant assumptions and appropriateness of available tax planning strategies. Professionals with specialized skill and knowledge were used to assist in evaluating management’s analysis, including cumulative taxable income (loss) as well as the reasonableness of management’s judgments and estimates, including management’s application of foreign tax regulations. We have served as the Company’s auditor since 2000. 51 /s/ PricewaterhouseCoopers LLP PricewaterhouseCoopers LLP Dallas, Texas February 17, 2020