assumptions used are reasonable; however, changes in these assumptions, or experience dif ferent from that assumed, could  impact our financial position, results of operations or cash flows. Postemployment benefits  — Costs to provide postemployment benefits to employees are accounted for on an accrual basis.  Obligations that do not accumulate or vest are recorded when payment is probable and the amount can be reasonably estimated.  For those obligations that accumulate or vest and the amount can be reasonably estimated, expense and the related liability are  recorded as service is rendered. Equity-based compensation  — We measure compensation cost arising from the grant of share-based awards to employees at  fair value. We recognize such costs in income over the period during which the requisite service is provided, usually the vesting  period. The grant date fair value is estimated using valuation techniques that require the input of management estimates and  assumptions. We believe that the assumptions used are reasonable; however , due to inherent uncertainties in making estimates,  if other assumptions had been used, it could have impacted our financial position and results of operations. Revenue recognition  — Sales are recognized when products are shipped and risk of loss has transferred to the customer . We  accrue for warranty costs, sales returns and other allowances based on experience and other relevant factors when sales are  recognized. Adjustments are made as new information becomes available. Shipping and handling fees billed to customers are  included in sales, while costs of shipping and handling are included in cost of sales.  Taxes collected from customers are  excluded from revenues and credited directly to obligations to the appropriate governmental agencies. Foreign currency translation  — The financial statements of subsidiaries and equity af filiates outside the U.S. located in non- highly inflationary economies are measured using the currency of the primary economic environment in which they operate as  the functional currency , which typically is the local currency. Transaction gains and losses resulting from translating assets and  liabilities of these entities into the functional currency are included in other income, net or in equity in earnings of af filiates. When translating into U.S. dollars, income and expense items are translated at average monthly rates of exchange, while assets  and liabilities are translated at the rates of exchange at the balance sheet date.  Translation adjustments resulting from translating  the functional currency into U.S. dollars are deferred and included as a component of  AOCI in stockholders’ equity. For  operations whose functional currency is the U.S. dollar , nonmonetary assets are translated into U.S. dollars at historical  exchange rates and monetary assets are translated at current exchange rates. Venezuela’s economy is considered highly inflationary under GAAP . As such, we remeasure the financial statements of our  subsidiaries in Venezuela as if their functional currency was the U.S. dollar . Prior to 2014, the Venezuelan government through its Commission for the  Administration of Foreign Exchange (CADIVI)  maintained a fixed of ficial exchange rate. The official exchange rate was fixed at  4.3 bolivars per U.S. dollar until February  2013 when the Venezuelan government devalued the bolivar to 6.3 bolivars per U.S. dollar. We recorded a $6 charge in the first  quarter of 2013 associated with the devaluation of the of ficial exchange rate. After the devaluation, CADIVI allowed certain  obligations existing at the date of the devaluation to be settled at the former  4.3 rate. During the last nine months of 2013, we  recognized $5 of gains on claims settled at the former  4.3 rate. In March 2013, the Venezuelan government announced the  creation of the Complementary System of Foreign Currency  Administration (SICAD), a supplementary currency auction  system regulated by the Central Bank of  Venezuela for purchases of U.S. dollars by certain eligible importers. During 2013, our  subsidiaries in Venezuela were not eligible to utilize SICAD and therefore we continued to use the of ficial exchange rate to  remeasure the financial statements of our subsidiaries in  Venezuela. In the first quarter of 2014, the  Venezuelan government transferred the administration of the of ficial exchange rate to the  National Center of Foreign Commerce (CENCOEX) and indicated that the of ficial exchange rate of 6.3 would be increasingly  reserved only for the settlement of U.S. dollar -denominated obligations related to purchases of “essential goods and services.” In addition, the Venezuelan government expanded the entities and transactions that would be eligible to use SICAD. Transactions eligible for SICAD currently include foreign investments and payments of royalties.  Also during the first quarter  of 2014, the Venezuelan government announced the creation of SICAD 2, a market-based exchange mechanism regulated by  the Central Bank of Venezuela. SICAD 2 may be used by all companies incorporated or domiciled in  Venezuela who want to  obtain U.S. dollars for any purpose. With the expansion of SICAD and the formation of SICAD 2 there is uncertainty surrounding transactions that CENCOEX  will allow to be transacted at the of ficial exchange rate. In consultation with legal counsel we have determined that the SICAD  rate, which we believe would apply to dividend remittances, is the appropriate rate to remeasure the bolivar - denominated net  monetary assets of our subsidiaries in  Venezuela. Effective March 31, 2014, we ceased using the of ficial exchange rate of 6.3  and began using the SICAD rate, which was 10.7 bolivars per U.S. dollar (as published by the Central Bank of  Venezuela) at  March 31, 2014, to remeasure the financial statements of our subsidiaries in  Venezuela. 48