INVESTMENTS

9 Months Ended

Sep. 30, 2019

Equity Method Investments and Joint Ventures [Abstract]

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 condensed consolidated statements 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 and nine months ended September 30, 2019 and 2018 in the accompanying unaudited 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 19.71 and MXN 19.64 at September 30, 2019 and December 31, 2018, respectively.

The Company's proportionate share of Vasconia's net (loss) income has been translated from MXN to USD using the following exchange rates:


	Three Months Ended September 30,			Nine Months Ended September 30,
	2019	2018	2019	2018
Average exchange rate (MXN to USD)	19.42	18.94	19.11 - 19.42	18.71-19.38

The effect of the translation of the Company’s investment resulted in a decrease to the investment of $1.8 million during the nine months ended September 30, 2019 and an increase to the investment of $0.8 million during the nine months ended 2018. These translation effects are recorded in accumulated other comprehensive income (loss).

Summarized statement of income information for Vasconia in USD and MXN is as follows (in thousands):


	Three Months Ended September 30,
	2019						2018
	USD		MXN		USD		MXN
Net sales	$	36,566	$	710,118	$	41,222	$	780,938
Gross profit	5,572		108,205		7,762		147,039
(Loss) income from operations	(581)		(11,288)		1,063		20,136
Net Loss	(647)		(12,571)		(1,233)		(23,361)


	Nine Months Ended September 30,
	2019						2018
	USD		MXN		USD		MXN
Net Sales	$	115,100	$	2,216,293	$	128,853	$	2,452,673
Gross profit	22,801		438,478		24,867		473,763
Income from operations	4,117		78,739		5,867		112,466
Net (Loss) income	(1,158)		(22,384)		862		17,484

The Company recorded equity in (losses) earnings of Vasconia, net of taxes, of $(0.2) million and $(0.4) million for the three and nine months ended September 30, 2019, respectively. The Company recorded equity in (losses) earnings of Vasconia, net of taxes, of $0.2 million and $0.4 million for the three and nine months ended September 30, 2018, respectively. Equity in (losses) earnings for the three and nine months ended September 30, 2018 includes deferred tax benefit of $0.6 million and $0.3 million, respectively, due to the requirement to record tax benefits for foreign currency translation gains and losses through other comprehensive (loss) income, with a corresponding adjustment to deferred tax liabilities.

Included within the Company's condensed consolidated balance sheets are the following amounts due to and due from Vasconia (in thousands):


Vasconia due to and due from balances	Balance Sheet Location	September 30, 2019		December 31, 2018
Amounts due from Vasconia	Prepaid expenses and other current assets	$	48	$	95
Amounts due to Vasconia	Accrued expenses and Accounts payable	90		—

As of September 30, 2019 and December 31, 2018, the fair value (based upon Vasconia’s quoted stock price) of the Company’s investment in Vasconia was $33.3 million and $31.9 million, respectively. The carrying value of the Company’s investment in Vasconia was $20.3 million and $22.6 million as of September 30, 2019 and December 31, 2018, respectively.