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Income taxes (Tables) | 12 Months Ended
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Dec. 31, 2018
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) |  | 2018 |  |  | 2017 |  |  | 2016 |
U.S. |  | $ | 28,642 |  |  | $ | 27,774 |  |  | $ | 23,006 |
Non-U.S. |  |  | (5,757 | ) |  |  | 8,617 |  |  |  | (3,982 | )
Income before income taxes |  | $ | 22,885 |  |  | $ | 36,391 |  |  | $ | 19,024 |
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) |  | 2018 |  |  | 2017 |  |  | 2016 |
U.S. |  |  |  |  |  |  |  |  |  |  |  |
Current |  | $ | 9,480 |  |  | $ | 3,620 |  |  | $ | 558 |
Deferred |  |  | (3,430 | ) |  |  | 20,222 |  |  |  | 9,296 |
|  |  | 6,050 |  |  |  | 23,842 |  |  |  | 9,854 |
Non-U.S. |  |  |  |  |  |  |  |  |  |  |  |
Current |  |  | 2,255 |  |  |  | 4,062 |  |  |  | 4,509 |
Deferred |  |  | 769 |  |  |  | 1,196 |  |  |  | 1,164 |
|  |  | 3,024 |  |  |  | 5,258 |  |  |  | 5,673 |
Income tax expense |  | $ | 9,074 |  |  | $ | 29,100 |  |  | $ | 15,527 |
Schedule of Effective Income Tax Rate Reconciliation for Continuing Operations | The differences between the income tax provision at the U.S. federal statutory tax rate and the Company’s effective tax rate for the years ended December 31, 2018, 2017, and 2016 consist of the following:
|  | 2018 |  |  | 20171 |  |  | 20161 |
(U.S. Dollars, in thousands, except percentages) |  | Amount |  |  | Percent |  |  | Amount |  |  | Percent |  |  | Amount |  |  | Percent |
Statutory U.S. federal income tax rate |  | $ | 4,806 |  |  |  | 21.0 | % |  | $ | 12,737 |  |  |  | 35.0 | % |  | $ | 6,658 |  |  |  | 35.0 | %
State taxes, net of U.S. federal benefit |  |  | 1,038 |  |  |  | 4.5 |  |  |  | 1,598 |  |  |  | 4.4 |  |  |  | 395 |  |  |  | 2.1 |
Foreign rate differential, including withholding taxes |  |  | 784 |  |  |  | 3.4 |  |  |  | (3,849 | ) |  |  | (10.6 | ) |  |  | (805 | ) |  |  | (4.2 | )
Charges related to U.S. Government resolutions |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2,050 |  |  |  | 10.8 |
Valuation allowances, net |  |  | 4,116 |  |  |  | 18.0 |  |  |  | 3,548 |  |  |  | 9.7 |  |  |  | 6,149 |  |  |  | 32.3 |
Change in estimate on compensation expenses |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (2,151 | ) |  |  | (11.3 | )
Italian subsidiary intangible asset |  |  | (230 | ) |  |  | (1.0 | ) |  |  | (381 | ) |  |  | (1.0 | ) |  |  | (1,477 | ) |  |  | (7.8 | )
Change of intention for foreign earnings |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,300 |  |  |  | 6.8 |
Domestic manufacturing deduction |  |  | — |  |  |  | — |  |  |  | (818 | ) |  |  | (2.2 | ) |  |  | — |  |  |  | — |
Unrecognized tax benefits, net of settlements |  |  | 81 |  |  |  | 0.4 |  |  |  | 6,002 |  |  |  | 16.5 |  |  |  | 3,049 |  |  |  | 16.0 |
Impact of the Tax Act |  |  | (560 | ) |  |  | (2.4 | ) |  |  | 8,347 |  |  |  | 22.9 |  |  |  | — |  |  |  | — |
Equity compensation |  |  | (1,646 | ) |  |  | (7.2 | ) |  |  | 272 |  |  |  | 0.7 |  |  |  | 334 |  |  |  | 1.8 |
Contingent consideration |  |  | 528 |  |  |  | 2.3 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Other, net |  |  | 157 |  |  |  | 0.7 |  |  |  | 1,644 |  |  |  | 4.5 |  |  |  | 25 |  |  |  | 0.1 |
Income tax expense/effective rate |  | $ | 9,074 |  |  |  | 39.7 | % |  | $ | 29,100 |  |  |  | 80.0 | % |  | $ | 15,527 |  |  |  | 81.6 | %
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) |  | 2018 |  |  | 2017 |
Intangible assets and goodwill |  | $ | 1,682 |  |  | $ | 2,271 |
Inventories and related reserves |  |  | 12,151 |  |  |  | 11,298 |
Deferred revenue and cost of goods sold |  |  | 4,652 |  |  |  | 6,816 |
Other accruals and reserves |  |  | 2,799 |  |  |  | 2,336 |
Accrued compensation |  |  | 8,317 |  |  |  | 4,054 |
Allowance for doubtful accounts |  |  | 2,346 |  |  |  | 2,617 |
Net operating loss and tax credit carryforwards |  |  | 52,664 |  |  |  | 43,296 |
Other, net |  |  | 2,200 |  |  |  | 1,748 |
|  |  | 86,811 |  |  |  | 74,436 |
Valuation allowance |  |  | (49,014 | ) |  |  | (46,271 | )
Deferred tax asset |  | $ | 37,797 |  |  | $ | 28,165 |
Withholding taxes |  |  | — |  |  |  | (381 | )
Property, plant and equipment |  |  | (4,569 | ) |  |  | (4,469 | )
Deferred tax liability |  |  | (4,569 | ) |  |  | (4,850 | )
Net deferred tax assets |  | $ | 33,228 |  |  | $ | 23,315 |
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, 2018, 2017, and 2016 follows:
(U.S. Dollars, in thousands) |  | 2018 |  |  | 2017 |
Balance as of January 1, |  | $ | 23,676 |  |  | $ | 19,400 |
Additions for current year tax positions |  |  | 170 |  |  |  | 787 |
Increases for prior year tax positions |  |  | 1,653 |  |  |  | 3,498 |
Settlements of prior year tax positions |  |  | (1,499 | ) |  |  | — |
Expiration of statutes |  |  | (2,649 | ) |  |  | (9 | )
Balance as of December 31, |  | $ | 21,351 |  |  | $ | 23,676 |

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