XML 30 R11.htm IDEA: XBRL DOCUMENT v3.20.1
INVESTMENTS
 3 Months Ended
Mar. 31, 2020
Equity Method Investments and Joint Ventures [Abstract]  
INVESTMENTS INVESTMENTS
The Company owns approximately 30% of the outstanding capital stock of 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 months ended March 31, 2020 and 2019 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 23.77 and MXN 18.91 at March 31, 2020 and December 31, 2019, respectively.
The Company's proportionate share of Vasconia's net income (loss) has been translated from MXN to USD using the following exchange rates:
Three Months Ended
March 31,

20202019
Average exchange rate (USD to MXN)
19.91
19.24
The effect of the translation of the Company’s investment, as well as the translation of Vasconia's balance sheet, resulted in a decrease to the investment of $1.5 million and $0.3 million during the three months ended March 31, 2020 and 2019, respectively. These translation effects are recorded in accumulated other comprehensive loss.

Summarized income statement information for the three months ended March 31, 2020 and 2019 for Vasconia in USD and MXN is as follows (in thousands):
Three Months Ended
March 31,
20202019
USDMXNUSDMXN
Net sales$31,795  $633,036  $41,494  $798,338  
Gross profit
5,407  107,657  7,938  152,721  
(Loss) income from operations
(550) (10,948) 1,893  36,426  
Net income (loss)
1,422  28,303  (333) (6,406) 

The Company recorded equity in earnings (losses) of Vasconia, net of taxes, of $0.3 million and $(0.1) million for the three months ended March 31, 2020 and 2019, respectively.
Included within the Company's unaudited condensed consolidated balance sheets were the following amounts due to and due from Vasconia (in thousands):
Vasconia due to and due from balancesBalance Sheet
Location		March 31, 2020December 31, 2019
Amounts due from VasconiaPrepaid expenses and other current assets$44  $63  
Amounts due to VasconiaAccrued expenses and Accounts payable(122) (77) 

As of March 31, 2020 and December 31, 2019, the fair value (based upon the quoted stock price) of the Company’s investment in Vasconia was $27.5 million and $34.7 million, respectively. The carrying value of the Company’s investment in Vasconia was $20.2 million and $21.3 million as of March 31, 2020 and December 31, 2019, respectively.