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INVESTMENTS
 6 Months Ended
Jun. 30, 2021
Equity Method Investments and Joint Ventures [Abstract]  
INVESTMENTS INVESTMENTS
As of June 30, 2021, the Company owns approximately 27% 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 six months ended June 30, 2021 and 2020 in the accompanying unaudited condensed consolidated statements of operations.
On June 30, 2021, Vasconia sold shares, which diluted the Company’s investment ownership from approximately 30% to approximately 27%. The dilution in ownership did not change the Company's accounting for its investment in Vasconia and the Company continues to apply the equity method of accounting. The Company recorded a non-cash gain of $1.7 million, increasing the Company's investment balance. Additionally, a loss of $2.0 million was recognized for the proportionate share of the diluted ownership for amounts previously recognized in accumulated other comprehensive loss. The net loss of $0.3 million was included in equity in earnings (losses), net of taxes, in the accompanying unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2021.
On July 29, 2021, the Company sold 2.2 million shares further reducing its ownership of approximately 27% in Vasconia for net cash proceeds of approximately $3.0 million. The Company estimates the gain on the sale, without consideration for income taxes, is $1.0 million. The Company also estimates a non-cash loss of $1.4 million for amounts previously recognized in accumulated other comprehensive loss.
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 19.86 and MXN 19.88 at June 30, 2021 and December 31, 2020, 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
June 30,
Six Months Ended
June 30,
2021202020212020
Average exchange rate (USD to MXN)
20.02
23.31
20.02 - 20.33
19.91 - 23.31
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 $1.6 million and a decrease of $4.0 million during the six months ended June 30, 2021 and 2020, respectively. These translation effects are recorded in accumulated other comprehensive loss.
Summarized income statement information for the three and six months ended June 30, 2021 and 2020 for Vasconia in USD and MXN is as follows (in thousands):
Three Months Ended
June 30,
20212020
USDMXNUSDMXN
Net sales$59,079 $1,182,752 $28,572 $666,012 
Gross profit
15,921 318,737 6,062 141,304 
Income from operations
6,499 130,110 1,414 32,948 
Net income (loss)
2,380 47,661 (1,994)(46,459)
Six Months Ended
June 30,
20212020
USDMXNUSDMXN
Net sales$112,685 $2,272,569 $60,367 $1,299,048 
Gross profit
27,879 561,840 11,469 248,961 
Income from operations
10,283 207,043 864 22,000 
Net income (loss)
1,610 32,000 (572)(18,156)
The Company recorded equity in earnings of Vasconia, net of taxes, of $0.7 million and $0.5 million for the three and six months ended June 30, 2021, respectively. The Company recorded equity in losses of Vasconia, net of taxes, of $0.6 million and $0.3 million for the three and six ended June 30, 2020, 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		June 30, 2021December 31, 2020
Amounts due from VasconiaPrepaid expenses and other current assets$87 $55 
Amounts due to VasconiaAccrued expenses and Accounts payable(298)(91)

As of June 30, 2021 and December 31, 2020, the fair value (based on Level 1 inputs using the quoted stock price) of the Company’s investment in Vasconia was $39.2 million and $32.8 million, respectively. The carrying value of the Company’s investment in Vasconia was $23.8 million and $20.0 million as of June 30, 2021 and December 31, 2020, 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 period ended June 30, 2020. The Company included this loss within equity in losses, net of taxes.