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EQUITY INVESTMENTS
 12 Months Ended
Dec. 31, 2019
Equity Method Investments and Joint Ventures [Abstract]  
EQUITY INVESTMENTS EQUITY INVESTMENTS
The Company owns approximately 30% of the outstanding capital stock of 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 years ended December 31, 2019, 2018 and 2017 in the accompanying 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 18.91 and MXN 19.64 at December 31, 2019 and 2018, respectively.
The Company's proportionate share of Vasconia's net income (loss) has been translated from MXN to USD using the following exchange rates:
Year Ended December 31, 2019
201920182017
Average exchange rate (MXN to USD)
19.11 - 19.42
18.71 - 19.81
17.81 - 20.30
The effect of the translation of the Company’s investment, as well as the translation of Vasconia’s balance sheet, resulted in a decrease of the investment of $1.6 million during the year ended December 31, 2019 and a decrease of the investment of $1.9 million during the year ended December 31, 2018. These translation effects are recorded in accumulated other comprehensive loss. The Company received cash dividends of $124,000, $115,000 and $28,000, from Vasconia during the years ended December 31, 2019, 2018 and 2017, respectively.
The amounts due to and due from Vasconia as of December 31, 2019 and 2018 are as follows (in thousands):
Vasconia due to and due from balancesBalance Sheet LocationDecember 31, 2019December 31, 2018
Amounts due from VasconiaPrepaid expenses and other current assets$63  $95  
Amounts due to VasconiaAccrued expenses and Accounts payable(77) —  
Summarized income statement information for the years ended December 31, 2019, 2018 and 2017, as well as summarized balance sheet information as of December 31, 2019 and 2018, for Vasconia, calculated in accordance with U.S. GAAP, in USD and MXN is as follows:
Year Ended December 31,
201920182017
(in thousands)
USDMXNUSDMXNUSDMXN
Income Statement
Net sales$159,746  $3,074,398  $179,547  $3,456,852  $167,283  $3,157,671  
Gross profit34,032  654,342  36,891  711,941  34,626  655,186  
Income from operations8,620  165,287  11,402  222,115  10,475  199,170  
Net income1,757  28,892  2,887  57,590  1,164  23,983  

December 31,
20192018
(in thousands)
USDMXNUSDMXN
Balance Sheet
Current assets$94,263  $1,782,170  $96,135  $1,888,602  
Non-current assets110,908  2,096,880  86,279  1,694,969  
Current liabilities74,095  1,400,883  64,831  1,273,619  
Non-current liabilities50,037  946,014  32,261  633,772  
The Company recorded equity in earnings of Vasconia, net of taxes, of $0.5 million, $0.9 million and $0.4 million for the years ended December 31, 2019, 2018 and 2017, respectively. Equity in earnings in 2018 includes deferred tax benefit of $0.1 million due to a change in the tax basis of the investment as a result of the Tax Act. Equity in earnings in 2017 includes deferred tax benefit of $0.2 million due to the requirement to record tax benefits for foreign currency translation losses through other comprehensive income (loss), with a corresponding adjustment to deferred tax liabilities.
As of December 31, 2019, the fair value (based upon the quoted stock price) of the Company’s investment in Vasconia was $34.7 million. The carrying value of the Company’s investment in Vasconia was $21.3 million.
In February 2012, the Company entered into a joint venture, Grand Venture Holdings Limited (“Grand Venture”), with Manweal Development Limited (“Manweal”), a Chinese corporation, to distribute Mikasa® products in China, which included an initial investment by the Company of $0.5 million. The Company and Manweal each own 50% of Grand Venture and have rights and obligations proportionate to their ownership percentages. The Company accounts for its investment in Grand Venture using the equity method of accounting and has recorded its proportionate share of Grand Venture’s net loss as equity in earnings (losses) in the Company’s consolidated statements of operations. Due to the operating losses the Company evaluated the carrying value of its investment for other-than temporary impairment under the equity method of accounting and recorded an impairment charge of approximately $0.2 million during the year ended December 31, 2018. As of December 31, 2018, the Company had a carrying value of zero in Grand Venture.