NOTE C —INVESTMENTS

The Company owns approximately a 30% interest in Grupo Vasconia S.A.B. (“Vasconia”), an integrated manufacturer of aluminum products and one of Mexico’s largest housewares companies. Shares of Vasconia’s capital stock are traded on the Bolsa Mexicana de Valores, the Mexican Stock Exchange (www.bmv.com.mx). The Quotation Key is VASCONI. 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, 2014 and 2013 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 13.06 and MXN 12.34 at March 31, 2014 and 2013, 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 13.23 and MXN 12.70 during the three months ended March 31, 2014 and 2013, respectively. The effect of the translation of the Company’s investment resulted in a decrease of the investment of $11,000 and an increase of $1.7 million during the three months ended March 31, 2014 and 2013, respectively (also see Note K). These translation effects are recorded in accumulated other comprehensive loss. Included in prepaid expenses and other current assets at March 31, 2014 are amounts due from Vasconia of $36,000. Included within accrued expenses at March 31, 2014 and December 31, 2013 are amounts due to Vasconia of $8,000 and $152,000, respectively.

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


	Three Months Ended
	March 31,
	2014				2013
	(in thousands)
	USD		MXN		USD		MXN
Net sales	$	43,258	$	572,196	$	40,240	$	510,879
Gross profit		7,839		103,697		7,917		100,519
Income from operations		1,754		23,207		2,140		27,169
Net income		109		1,438		1,226		15,568

The Company recorded equity in earnings of Vasconia, net of taxes, of $41,000 and $0.3 million for the three months ended March 31, 2014 and 2013, respectively.

As of March 31, 2014 and December 31, 2013, the fair value (based upon the quoted stock price) of the Company’s investment in Vasconia was $35.2 million, in both periods. The carrying value of the Company’s investment in Vasconia was $30.5 million as of March 31, 2014 and December 31, 2013, in both periods.

The Company owns a 40% equity interest in GS Internacional S/A (“GSI”), a leading wholesale distributor of branded housewares products in Brazil, which the Company acquired in December 2011. The Company recorded equity in losses of GSI of $213,000 and $23,000, net of taxes, for the three months ended March 31, 2014 and 2013, respectively.