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INVESTMENTS | 3 Months Ended
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Mar. 31, 2019
INVESTMENTS | NOTE E —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. 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, 2019 and 2018 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 rates of MXN 19.41 and MXN 19.64 at March 31, 2019 and December 31, 2018, respectively. The Company’s proportionate share of Vasconia’s net loss has been translated from MXN to USD using the average exchange rates of MXN 19.24 during the three months ended March 31, 2019 and Vasconia’s net income has been translated from MXN to USD using the average exchange rates of MXN 18.71 during the three months ended March 31, 2018. The effect of the translation of the Company’s investment resulted in a decrease to the investment of $0.3 million and an increase to the investment of $0.7 million during the three months ended March 31, 2019 and 2018, respectively. These translation effects are recorded in accumulated other comprehensive income (loss). Included within prepaid expenses and other current assets at March 31, 2019 and December 31, 2018 are amounts due from Vasconia of $130,000 and $95,000, respectively. Included within accrued expenses and accounts payable at March 31, 2019 and December 31, 2018 are amounts due to Vasconia of $33,000 and $0, respectively. A summarized statement of income information for Vasconia in USD and MXN is as follows:
|  | Three Months Ended |
|  | March 31, |
|  | 2019 |  |  | 2018 |
|  | (in thousands) |
|  | USD |  |  | MXN |  |  | USD |  |  | MXN |
Net sales |  | $ | 41,494 |  |  | $ | 798,338 |  |  | $ | 39,570 |  |  | $ | 740,406 |
Gross profit |  |  | 7,938 |  |  |  | 152,721 |  |  |  | 7,119 |  |  |  | 133,207 |
Income from operations |  |  | 1,893 |  |  |  | 36,426 |  |  |  | 1,149 |  |  |  | 21,503 |
Net loss |  |  | (333 | ) |  |  | (6,406 | ) |  |  | (362 | ) |  |  | (6,776 | )
The Company recorded equity in losses of Vasconia, net of taxes, of $116,000 for the three months ended March 31, 2019 and equity in earnings of Vasconia, net of taxes, of $77,000, for the three months ended March 31, 2018. Equity in earnings for the three months ended March 31, 2018 includes a deferred tax benefit of $0.2 million, due to the requirement to record tax benefits for foreign currency translation gains and losses through other comprehensive income (loss), with a corresponding adjustment to deferred tax liabilities. As of March 31, 2019 and December 31, 2018, the fair value (based upon Vasconia’s quoted stock price) of the Company’s investment in Vasconia was $32.7 million and $31.9 million, respectively. The carrying value of the Company’s investment in Vasconia was $22.2 million and $22.6 million as of March 31, 2019 and December 31, 2018, respectively.

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
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