INVESTMENTS

9 Months Ended

Sep. 30, 2020

Equity Method Investments and Joint Ventures [Abstract]

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 and nine months ended September 30, 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 22.26 and MXN 18.91 at September 30, 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 September 30,		Nine Months Ended September 30,
	2020	2019	2020	2019
Average exchange rate (USD to MXN)	22.06	19.42	19.91 - 23.31	19.11 - 19.42

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 $3.4 million and $1.8 million during the nine months ended September 30, 2020 and 2019, respectively. These translation effects are recorded in accumulated other comprehensive loss.

Summarized income statement information for the three and nine months ended September 30, 2020 and 2019 for Vasconia in USD and MXN is as follows (in thousands):


	Three Months Ended September 30,
	2020				2019
	USD		MXN		USD		MXN
Net sales	$	39,565	$	872,647	$	36,566	$	710,118
Gross profit	9,556		210,770		5,572		108,205
Income (loss) from operations	2,957		65,229		(581)		(11,288)
Net income (loss)	536		11,812		(647)		(12,571)



	Nine Months Ended September 30,
	2020				2019
	USD		MXN		USD		MXN
Net Sales	$	99,932	$	2,171,695	$	115,100	$	2,216,293
Gross profit	21,025		459,731		22,801		438,478
Income from operations	3,821		87,229		4,117		78,739
Net loss	(36)		(6,344)		(1,158)		(22,384)

The Company recorded equity in earnings (losses) of Vasconia, net of taxes, of $0.1 million and $(0.2) million for the three and nine months ended September 30, 2020, respectively. The Company recorded equity in losses of Vasconia, net of taxes, of $0.2 million and $0.4 million for the three and nine months ended September 30, 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 balances	Balance Sheet Location	September 30, 2020		December 31, 2019
Amounts due from Vasconia	Prepaid expenses and other current assets	$	75	$	63
Amounts due to Vasconia	Accrued expenses and Accounts payable	(380)		(77)

As of September 30, 2020 and December 31, 2019, the fair value (based upon the quoted stock price) of the Company’s investment in Vasconia was $29.3 million and $34.7 million, respectively. The carrying value of the Company’s investment in Vasconia was $17.7 million and $21.3 million as of September 30, 2020 and December 31, 2019, respectively.

Lifetime Brands Do Brasil Participacoes Ltda., a 100% owned subsidiary of Lifetime Brands, Inc., was dissolved on May 5, 2020. The subsidiary held a note receivable relating to the 2016 sale of its 40% equity interest in GS International S/A (“GSI”), a wholesale distributor of branded housewares products in Brazil, which was accounted for as an equity method investment. The final installment due on the note receivable was received prior to dissolution of the subsidiary. Foreign currency translation losses of $0.2 million, which were previously recorded as a component of stockholder’s equity within accumulated other comprehensive loss, were recognized in earnings upon dissolution of this subsidiary for the nine months ended September 30, 2020. The Company included this loss within equity in earnings (losses), net of taxes.