NOTE B —INVESTMENTS

The Company owns a 30% interest in Grupo Vasconia S.A.B. (“Vasconia”). The Company accounts for its investment in Vasconia using the equity method of accounting and records its proportionate share of Vasconia’s net income in the Company’s statement of operations. Accordingly, the Company has recorded its proportionate share of Vasconia’s net income (reduced for amortization expense related to the customer relationships acquired) for the three month periods ended March 31, 2012 and 2011 in the accompanying condensed consolidated statements of operations. The value of the Company’s investment balance has been translated from Mexican Pesos (“MXN”) to U.S. Dollars (“USD”) using the spot rate of MXN 12.78 and MXN 11.89 at March 31, 2012 and 2011, respectively. The Company’s proportionate share of Vasconia’s net income has been translated from MXN to USD using the average exchange rate of MXN 12.98 and MXN 12.09 during the three months ended March 31, 2012 and 2011, respectively. The effect of the translation of the Company’s investment resulted in a increase of the investment of $1.7 million during the three months ended March 31, 2012 and $1.2 million during the three months ended March 31, 2011 (also see Note J). These translation effects are recorded in accumulated other comprehensive loss. Included in prepaid expenses and other current assets at March 31, 2012 and December 31, 2011 are amounts due from Vasconia of $0.3 million and $0.2 million, respectively.

Summarized statement of operations information for Vasconia in USD and MXN is as follows:


	Three Months Ended March 31,
	2012				2011
			(in thousands)
	USD		MXN		USD		MXN
Net Sales	$	28,687	$	372,489	$	28,571	$	345,477
Gross Profit		8,168		106,064		8,083		97,737
Income from operations		3,322		43,134		3,325		40,206
Net Income		1,965		25,511		2,131		25,768

The Company recorded equity in earnings of Vasconia, net of taxes, of $0.5 million for the three months ended March 31, 2012 and 2011.

The Company has a 40% equity interest in GS Internacional S/A (“GSI”), a leading wholesale distributor of branded housewares products in Brazil. During the three month period ended March 31, 2012, the Company recorded equity in losses of GSI of $133,000. Of the $7.6 million consideration payable by the Company with respect to this investment, approximately $2.6 million remained to be paid as of March 31, 2012.

In February 2012, the Company entered into a joint venture to distribute Mikasa^® products in China, for which it expects to make an initial investment of approximately $500,000.