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INVESTMENTS | 3 Months Ended
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Mar. 31, 2022
Equity Method Investments and Joint Ventures [Abstract] |
INVESTMENTS | INVESTMENTS As of March 31, 2022, the Company owned 24.7% 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. For the period ended March 31, 2021, the Company's investment ownership was 30.0%. The Company's investment ownership decreased to approximately 27.0% on June 30, 2021 and was further reduced to 24.7% on July 29, 2021 as a result of transactions that occurred in those periods. 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, 2022 and 2021 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 19.88 and MXN 20.46 at March 31, 2022 and December 31, 2021, 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, |  |
| 2022 |  | 2021 |  |  |  |
Average exchange rate (USD to MXN) | 20.50 |  | 20.33 |  |  |  |
The effect of the translation of the Company’s investment, as well as the translation of Vasconia’s balance sheet, resulted in an increase to the investment of $0.1 million and $1.3 million during the three months ended March 31, 2022 and 2021, respectively. These translation effects are recorded in accumulated other comprehensive loss. Summarized income statement information for the three months ended March 31, 2022 and 2021 for Vasconia in USD and MXN is as follows (in thousands):
| Three Months Ended March 31,
| 2022 |  | 2021
| USD |  | MXN |  | USD |  | MXN
Net sales | $ | 64,318 |  |  | $ | 1,318,513 |  |  | $ | 53,606 |  |  | $ | 1,089,817 |
Gross profit | 14,420 |  |  | 295,618 |  |  | 11,958 |  |  | 243,103 |
Income from operations | 4,685 |  |  | 96,040 |  |  | 3,784 |  |  | 76,933 |
Net income (loss) | 1,731 |  |  | 35,479 |  |  | (770) |  |  | (15,661) |
The Company recorded equity in earnings (losses) of Vasconia, net of taxes, of $0.4 million and $(0.2) million for the three months ended March 31, 2022 and 2021, 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 |  | March 31, 2022 |  | December 31, 2021
Amounts due from Vasconia | Prepaid expenses and other current assets |  | $ | 57 |  |  | $ | 80 |
Amounts due to Vasconia | Accrued expenses and Accounts payable |  | (105) |  |  | (146) |
As of March 31, 2022 and December 31, 2021, the fair value (based on Level 1 inputs using the quoted stock price) of the Company’s investment in Vasconia was $28.7 million and $31.5 million, respectively. The carrying value of the Company’s investment in Vasconia was $22.8 million and $22.3 million as of March 31, 2022 and December 31, 2021, 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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
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