XML 58 R39.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Income taxes (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2017
Income Tax Disclosure [Abstract] |
Schedule of Income (Loss) from Continuing Operations Before Provision for Income Taxes | Income (loss) from continuing operations before provision for income taxes consisted of the following:
|  | Year Ended December 31, |
(U.S. Dollars, in thousands) |  | 2017 |  |  | 2016 |  |  | 2015 |
U.S. |  | $ | 27,774 |  |  | $ | 23,006 |  |  | $ | 15,480 |
Non-U.S. |  |  | 8,617 |  |  |  | (3,982 | ) |  |  | (6,973 | )
Income before income taxes |  | $ | 36,391 |  |  | $ | 19,024 |  |  | $ | 8,507 |
Schedule of Provision for Income Taxes on Continuing Operations | The provision for income taxes on continuing operations consists of the following:
|  | Year Ended December 31, |
(U.S. Dollars, in thousands) |  | 2017 |  |  | 2016 |  |  | 2015 |
U.S. |  |  |  |  |  |  |  |  |  |  |  |
Current |  | $ | 3,620 |  |  | $ | 558 |  |  | $ | 6,792 |
Deferred |  |  | 20,222 |  |  |  | 9,296 |  |  |  | (1,146 | )
|  |  | 23,842 |  |  |  | 9,854 |  |  |  | 5,646 |
Non-U.S. |  |  |  |  |  |  |  |  |  |  |  |
Current |  |  | 4,062 |  |  |  | 4,509 |  |  |  | 3,661 |
Deferred |  |  | 1,196 |  |  |  | 1,164 |  |  |  | 1,542 |
|  |  | 5,258 |  |  |  | 5,673 |  |  |  | 5,203 |
Income tax expense |  | $ | 29,100 |  |  | $ | 15,527 |  |  | $ | 10,849 |
Schedule of Effective Income Tax Rate Reconciliation for Continuing Operations | The rate reconciliation for continuing operations presented below is based on the U.S. federal income tax rate, rather than the Company’s country of domicile tax rate. The Company believes, given the large proportion of taxable income earned in the United States, such disclosure is more meaningful.
|  | 2017 |  |  | 2016 |  |  | 2015 |
(U.S. Dollars, in thousands, except percentages) |  | Amount |  |  | Percent |  |  | Amount |  |  | Percent |  |  | Amount |  |  | Percent |
Statutory U.S. federal income tax rate |  | $ | 12,737 |  |  |  | 35.0 | % |  | $ | 6,658 |  |  |  | 35.0 | % |  | $ | 2,978 |  |  |  | 35.0 | %
State taxes, net of U.S. federal benefit |  |  | 1,598 |  |  |  | 4.4 |  |  |  | 395 |  |  |  | 2.1 |  |  |  | 521 |  |  |  | 6.1 |
Foreign rate differential, including withholding taxes |  |  | (3,849 | ) |  |  | (10.6 | ) |  |  | (805 | ) |  |  | (4.2 | ) |  |  | (1,934 | ) |  |  | (22.7 | )
Charges related to U.S. Government resolutions |  |  | — |  |  |  | — |  |  |  | 2,050 |  |  |  | 10.8 |  |  |  | — |  |  |  | — |
Valuation allowances, net |  |  | 3,548 |  |  |  | 9.7 |  |  |  | 6,149 |  |  |  | 32.3 |  |  |  | 10,952 |  |  |  | 128.7 |
Change in estimate on compensation expenses |  |  | — |  |  |  | — |  |  |  | (2,151 | ) |  |  | (11.3 | ) |  |  | — |  |  |  | — |
Italian subsidiary intangible asset |  |  | (381 | ) |  |  | (1.0 | ) |  |  | (1,477 | ) |  |  | (7.8 | ) |  |  | (2,076 | ) |  |  | (24.4 | )
Change of intention for foreign earnings |  |  | — |  |  |  | — |  |  |  | 1,300 |  |  |  | 6.8 |  |  |  | — |  |  |  | — |
Domestic manufacturing deduction |  |  | (818 | ) |  |  | (2.2 | ) |  |  | — |  |  |  | — |  |  |  | (469 | ) |  |  | (5.5 | )
Unrecognized tax benefits, net of settlements |  |  | 6,002 |  |  |  | 16.5 |  |  |  | 3,049 |  |  |  | 16.0 |  |  |  | 406 |  |  |  | 4.8 |
Impact of the Tax Act |  |  | 8,347 |  |  |  | 22.9 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Other, net |  |  | 1,916 |  |  |  | 5.3 |  |  |  | 359 |  |  |  | 1.9 |  |  |  | 471 |  |  |  | 5.5 |
Income tax expense/effective rate |  | $ | 29,100 |  |  |  | 80.0 | % |  | $ | 15,527 |  |  |  | 81.6 | % |  | $ | 10,849 |  |  |  | 127.5 | %
Schedule of Deferred Tax Assets and Liabilities | The Company’s deferred tax assets and liabilities are as follows:
|  | December 31, |
(U.S. Dollars, in thousands) |  | 2017 |  |  | 2016 |
Intangible assets and goodwill |  | $ | 2,271 |  |  | $ | 2,628 |
Inventories and related reserves |  |  | 11,298 |  |  |  | 17,665 |
Deferred revenue and cost of goods sold |  |  | 6,816 |  |  |  | 11,263 |
Other accruals and reserves |  |  | 2,336 |  |  |  | 4,066 |
Accrued compensation |  |  | 4,054 |  |  |  | 6,747 |
Allowance for doubtful accounts |  |  | 2,617 |  |  |  | 2,898 |
Accrued interest |  |  | — |  |  |  | 4,621 |
Net operating loss carryforwards |  |  | 42,675 |  |  |  | 37,930 |
Other, net |  |  | 2,369 |  |  |  | 3,032 |
|  |  | 74,436 |  |  |  | 90,850 |
Valuation allowance |  |  | (46,271 | ) |  |  | (41,701 | )
Deferred tax asset |  | $ | 28,165 |  |  | $ | 49,149 |
Withholding taxes |  |  | (381 | ) |  |  | (648 | )
Property, plant and equipment |  |  | (4,469 | ) |  |  | (1,176 | )
Deferred tax liability |  |  | (4,850 | ) |  |  | (1,824 | )
Net deferred tax assets |  | $ | 23,315 |  |  | $ | 47,325 |
Schedule of Gross Unrecognized Tax Benefits (Excluding Interest and Penalties) | A reconciliation of the gross unrecognized tax benefits (excluding interest and penalties) for the years ended December 31, 2017, 2016, and 2015 follows:
(U.S. Dollars, in thousands) |  | 2017 |  |  | 2016 |  |  | 2015 |
Balance as of January 1, |  | $ | 18,384 |  |  | $ | 15,763 |  |  | $ | 15,597 |
Additions for current year tax positions |  |  | 787 |  |  |  | 77 |  |  |  | 332 |
Increases (decreases) for prior year tax positions |  |  | 3,361 |  |  |  | 2,551 |  |  |  | (86 | )
Settlements of prior year tax positions |  |  | — |  |  |  | — |  |  |  | — |
Expiration of statutes |  |  | (10 | ) |  |  | (7 | ) |  |  | (80 | )
Balance as of December 31, |  | $ | 22,522 |  |  | $ | 18,384 |  |  | $ | 15,763 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)(1)(i)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=65882285&loc=SL6600010-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32718-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32840-109319 + Details
Name: | us-gaap_SummaryOfIncomeTaxContingenciesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration