40 on the monthly historical price data from the Company’ s common stock and other economic data trended into future years. After calculating the aggregate fair value of an award, the Company uses an estimated forfeiture rate to discount the amount of share- based compensation costs to be recognized in the operating results over the service period of the award. The Company develops the forfeiture assumption based on its historical pre-vesting cancellation experience. Key assumptions are described in further detail in Note 14 - Share-Based Compensation. New Accounting Standar ds A discussion of recently issued accounting pronouncements is described in Note 2 - Summary of Significant Accounting Policies, in Item 8 - Financial Statements and Supplementary Data of this Report, and we incorporate such discussion in this MD&A by reference and make it a part hereof. V enezuelan Operations On January 8, 2010, the V enezuelan government announced the devaluation of its currency , the BsF , and established a two-tier foreign exchange structure. The of ficial exchange rate for essential goods (food, medicine and other essential goods) was adjusted from 2.15 BsF per U.S. dollar to 2.60 BsF per U.S. dollar . The of ficial exchange rate for non-essential goods was adjusted from 2.15 BsF per U.S. dollar to 4.30 BsF per U.S. dollar . The Company remeasures the financial statements of its V enezuelan subsidiary at the rate at which the Company expects to remit dividends, which is 4.30 BsF per U.S. dollar . Due to the impact of the devaluation of its currency by the V enezuelan government, the Company recorded a pre-tax char ge of $29.8 million in the first quarter of 2010 related to the remeasurement of the local balance sheet on the date of the devaluation at the of ficial non-essential rate. In the second quarter of 2010, the Company received authorization to purchase dollars to import copper at the of ficial exchange rate for essential goods of 2.60 BsF per U.S. dollar . The Company recorded $16.6 million in foreign exchange gains related to transactions completed at the 2.60 BsF per U.S. dollar essential rate. Copper imports prior to the approval were imported at the parallel rate of about 6.88 BsF per U.S. dollar , which was closed on June 9, 2010. In 2010, the Company recorded $10.7 million in foreign exchange losses related to copper imports at this parallel rate. Ef fective January 1, 201 1, the Central Bank of V enezuela and the Ministry of Finance published an amendment to Convenio Cambiario No. 14 (the Exchange Law), whereby the of ficial exchange rate was set at 4.30 BsF per U.S. dollar , eliminating the 2.60 BsF per U.S. dollar rate previously established for essential goods in the first quarter of 2010. Thereafter , the Company can only import copper at the 4.30 BsF per U.S. dollar rate. In the year ended December 31, 2012 and December 31, 201 1, the Company purchased 21.2 million pounds and 19.1 million pounds of copper at the 4.30 BsF per U.S. dollar rate recording no foreign currency gains or losses, respectively . At December 31, 2012 and 201 1 , the Company’ s total assets in V enezuela were $348.2 million and $286.4 million and total liabilities were $108.2 million and $65.9 million, respectively . At December 31, 2012 and 201 1 , included within total assets were BsF denominated monetary assets of $202.2 million and $138.3 million, which consisted primarily of $142.1 million and $92.9 million of cash, and $56.9 million and $42.2 million of accounts receivable, respectively . At December 31, 2012 and 201 1 , included within total liabilities were BsF denominated monetary liabilities of $73.2 million and $31.1 million, which consisted primarily of accounts payable and other accruals. All monetary assets and liabilities were remeasured at 4.30 BsF per U.S. dollar at December 31, 2012 . Sales in V enezuela were 4% of our consolidated net sales for the year ended December 31, 2012 and 201 1 . Operating income in V enezuela was 30% and 18% of our consolidated operating income for the year ended December 31, 2012 and 201 1 , respectively . For the year ended December 31, 2012 , V enezuela’ s sales and cost of goods sold were approximately 98% and 39% BsF denominated and approximately 2% and 61% U.S. dollar denominated, respectively . For the year ended December 31, 201 1 , V enezuela’ s sales and cost of goods sold were approximately 92% and 30% BsF denominated and approximately 8% and 70% U.S. dollar denominated, respectively . A 10% increase (decrease) in the of ficial exchange rate would decrease (increase) V enezuela’ s sales and cost of goods sold on an annual basis by approximately $21.2 million and approximately ($6.0 million), respectively . During the years ended December 31, 2012 and 201 1 , the Company settled $83.3 million and $62.8 million of U.S. dollar denominated intercompany payables and accounts payable in V enezuela, respectively . For the year ended December 31, 2012 and December 31, 201 1, all transactions were settled at the 4.30 BsF per U.S. dollar rate. For the year ended December 31, 2010, approximately 68% were settled at the essential rate of 2.60 BsF per U.S. dollar and 32% were settled at the parallel rate which averaged 6.88 BsF per U.S. dollar between January 1, 2010 and June 8, 2010, the legal period of operation. At December 31, 2012 , $35.0 million of requests of U.S. dollars to settle U.S. dollar denominated liabilities remained pending with CADIVI, which we expect will be settled at the 4.30 BsF per U.S. dollar rate. Approximately $19.9 million of the requested settlements are current, $0.4 million have been pending up to 90 days, and $14.7 million have pending over 90 days. Currency exchange controls in V enezuela continue to limit our ability to remit funds from V enezuela. W e do not consider the net assets of V enezuela to be integral to our ability to service our debt and operational requirements. T able of Contents