in which the Company conducted operations (all operating currencies), and for certain individual currencies, strengthened (weakened) against the U.S. dollar 

coverage in place, the Company expects currencies to have a 10 percent negative impact on operating income for the first quarter of 2014 and a 7 percent negative impact on operating income for the full year of 2014. 

Foreign currency exchange gains and losses are primarily the result of the remeasurement of monetary assets and liabilities from certain currencies into functional currencies. The effects of the remeasurement of these assets and liabilities are partially offset by the impact of our economic hedging program for certain exposures on our consolidated balance sheets. Refer to Note 5 of Notes to Consolidated Financial Statements. Foreign currency exchange gains and losses are included as a component of other income

(loss) — net in our consolidated financial statements. Refer to the heading "Operations Review — Other Income (Loss) — Net" above. The Company recorded foreign currency exchange losses of $162 million, $2 million and $73 million in 2013, 2012 and 2011, respectively. 

Hyperinflationary Economies 

Our Company conducts business in more than 200 countries, some of which have been deemed to be hyperinflationary economies due to excessively high inflation rates in recent years. These economies create financial exposure for the Company. 

A hyperinflationary economy is one that has cumulative inflation of100 percent or more over a three-year period. Effective January 1, 2010, Venezuela was determined to be a hyperinflationary economy. In accordance with hyperinflationary accounting under accounting principles generally accepted in the United States, our local subsidiary was required to use the U.S. dollar as its functional currency. 

During February 2013, the Venezuelan government devalued its currency to an official rate of exchange ("official rate") of6.3 bolivars per U.S. dollar. The Company remeasured the net assets of our local subsidiary and recognized a related loss of $140 million from remeasurement in the line item other income (loss) — net in our consolidated statement of income. 

The Company will continue to use the official rate to remeasure the net assets of our Venezuelan subsidiary. In December 2013, the Venezuelan government devalued the currency for foreign tourists to 11.3 bolivars per U.S. dollar. While this rate is not applicable to the Company, it may indicate that another official currency devaluation that would impact companies doing business in the country could occur. If the official rate devalues further, or if we are able to access currency at different rates that are reasonable to the Company, it would result in our Company recognizing additional foreign currency exchange gains or losses in our consolidated financial statements. As of December 31, 2013, our Venezuelan subsidiary held monetary assets of $426 million and monetary liabilities of $45 million. 

In addition to the foreign currency exchange exposure related to our Venezuelan subsidiary's net assets, we also sell concentrate to our bottling partner in Venezuela from outside the