Quarterly financial data (unaudited)

12 Months Ended

Dec. 31, 2012

Quarterly Financial Information Disclosure [Abstract]

Quarterly financial data (unaudited)

23. Quarterly financial data (unaudited)

We have restated all quarterly periods of 2012 and 2011 to reflect the restatement described herein. See “Note 2 – Restatement of the Consolidated Financial Statements”. The following tables summarize the impacts of the restatement on our previously reported condensed consolidated statements of operations, balance sheets and statements of cash flows included in our Quarterly Reports on Form 10-Q for each respective period.

Condensed Consolidated Statement of Operations

As Restated

(U.S. Dollars, in thousands, except per share data)

	1st Quarter			2nd Quarter			3rd Quarter			4th Quarter			Year
	(Restated)			(Restated)			(Restated)			(Restated)			(Restated)
2012
Net sales	$	108,936		$	113,423		$	107,857		$	117,365		$	447,581
Cost of sales		21,378			27,547			24,384			24,944			98,253
Gross profit		87,558			85,876			83,473			92,421			349,328
Operating expense		69,638			71,578			64,668			66,808			272,692
Operating income		17,920			14,298			18,805			25,613			76,636
Net income from continuing operations, net of tax		8,597			9,870			10,574			16,009			45,050
Net income (loss) from discontinued operations, net of tax		810			(2,616	)		(5,558	)		5,152			(2,212	)
Net income	$	9,407		$	7,254		$	5,016		$	21,161		$	42,838
Net income (loss) per common share:
Basic:
Net income from continuing operations, net of tax	$	0.46		$	0.52		$	0.55		$	0.83		$	2.37
Net income (loss) from discontinued operations, net of tax	$	0.04		$	(0.14	)	$	(0.29	)	$	0.27		$	(0.12	)
Net income	$	0.50		$	0.38		$	0.26		$	1.10		$	2.25
Diluted:
Net income from continuing operations, net of tax	$	0.45		$	0.51		$	0.54		$	0.81		$	2.32
Net income (loss) from discontinued operations, net of tax	$	0.04		$	(0.14	)	$	(0.29	)	$	0.26		$	(0.11	)
Net income	$	0.49		$	0.37		$	0.25		$	1.07		$	2.21
2011
Net sales	$	103,606		$	108,216		$	111,510		$	118,639		$	441,971
Cost of sales		22,346			22,755			23,126			27,300			95,527
Gross profit		81,260			85,461			88,384			91,339			346,444
Operating expense		116,860			73,102			67,417			83,165			340,544
Operating income (loss)		(35,600	)		12,359			20,967			8,174			5,900
Net income (loss) from continuing operations, net of tax		(41,749	)		6,579			11,300			7,652			(16,218	)
Net income (loss) from discontinued operations, net of tax		282			(1,184	)		(1,225	)		235			(1,892	)
Net income (loss)	$	(41,467	) (1)	$	5,395		$	10,075		$	7,887	(2)	$	(18,110	)
Net income (loss) per common share:
Basic:
Net income (loss) from continuing operations, net of tax	$	(2.33	)	$	0.36		$	0.61		$	0.42		$	(0.89	)
Net income (loss) from discontinued operations, net of tax	$	0.02		$	(0.07	)	$	(0.07	)	$	0.01		$	(0.10	)
Net income (loss)	$	(2.31	)	$	0.29		$	0.54		$	0.43		$	(0.99	)
Diluted:
Net income (loss) from continuing operations, net of tax	$	(2.33	)	$	0.35		$	0.60		$	0.41		$	(0.89	)
Net income (loss) from discontinued operations, net of tax	$	0.02		$	(0.06	)	$	(0.06	)	$	0.01		$	(0.10	)
Net income (loss)	$	(2.31	)	$	0.29		$	0.54		$	0.42		$	(0.99	)

(1) Includes $46 million of charges related to U.S. Government resolutions

(2) Includes $10.5 million of charges related to U.S. Government resolutions

Condensed Consolidated Statement of Operations

As Previously Reported

(U.S. Dollars, in thousands, except per share data)

	1st Quarter			2nd Quarter			3rd Quarter			4th Quarter			Year
2012
Net sales	$	116,041		$	119,492		$	114,752		$	112,035		$	462,320
Cost of sales		21,939			23,676			22,373			18,504			86,492
Gross profit		94,102			95,816			92,379			93,531			375,828
Operating expense		71,671			75,251			70,846			69,050			286,818
Operating income		22,431			20,565			21,533			24,481			89,010
Net income from continuing operations, net of tax		12,215			13,967			13,118			14,636			53,936
Net income (loss) from discontinued operations, net of tax		(199	)		(2,762	)		(5,558	)		5,878			(2,641	)
Net income	$	12,016		$	11,205		$	7,560		$	20,514		$	51,295
Net income (loss) per common share:
Basic:
Net income from continuing operations, net of tax	$	0.65		$	0.74		$	0.69		$	0.76		$	2.84
Net income (loss) from discontinued operations, net of tax	$	(0.01	)	$	(0.15	)	$	(0.29	)	$	0.30		$	(0.14	)
Net income	$	0.64		$	0.59		$	0.40		$	1.06		$	2.70
Diluted:
Net income from continuing operations, net of tax	$	0.64		$	0.73		$	0.67		$	0.74		$	2.78
Net income (loss) from discontinued operations, net of tax	$	(0.01	)	$	(0.15	)	$	(0.28	)	$	0.30		$	(0.14	)
Net income	$	0.63		$	0.58		$	0.39		$	1.04		$	2.64
2011
Net sales	$	113,060		$	116,670		$	117,306		$	123,085		$	470,121
Cost of sales		22,340			23,186			23,854			23,239			92,619
Gross profit		90,720			93,484			93,452			99,846			377,502
Operating expense		118,217			74,088			69,853			84,035			346,193
Operating income (loss)		(27,497	)		19,396			23,599			15,811			31,309
Net income (loss) from continuing operations, net of tax		(36,740	)		10,519			12,951			11,530			(1,740	)
Net income (loss) from discontinued operations, net of tax		939			(561	)		(573	)		862			667
Net income (loss)	$	(35,801	) (1)	$	9,958		$	12,378		$	12,392	(2)	$	(1,073	)
Net income (loss) per common share:
Basic:
Net income (loss) from continuing operations, net of tax	$	(2.05	)	$	0.58		$	0.70		$	0.62		$	(0.10	)
Net income (loss) from discontinued operations, net of tax	$	0.05		$	(0.03	)	$	(0.03	)	$	0.05		$	0.04
Net income (loss)	$	(2.00	)	$	0.55		$	0.67		$	0.67		$	(0.06	)
Diluted:
Net income (loss) from continuing operations, net of tax	$	(2.05	)	$	0.57		$	0.69		$	0.62		$	(0.10	)
Net income (loss) from discontinued operations, net of tax	$	0.05		$	(0.03	)	$	(0.03	)	$	0.04		$	0.04
Net income (loss)	$	(2.00	)	$	0.54		$	0.66		$	0.66		$	(0.06	)

(1) Includes $46 million of charges related to U.S. Government resolutions

(2) Includes $10.5 million of charges related to U.S. Government resolutions

Condensed Consolidated Statement of Operations

Restatement Adjustments

(U.S. Dollars, in thousands, except per share data)

	1st Quarter			2nd Quarter			3rd Quarter			4th Quarter			Year
2012
Net sales	$	(7,105	)	$	(6,069	)	$	(6,895	)	$	5,330		$	(14,739	)
Cost of sales		(561	)		3,871			2,011			6,440			11,761
Gross profit		(6,544	)		(9,940	)		(8,906	)		(1,110	)		(26,500	)
Operating expense		(2,033	)		(3,673	)		(6,178	)		(2,242	)		(14,126	)
Operating income		(4,511	)		(6,267	)		(2,728	)		1,132			(12,374	)
Net income (loss) from continuing operations, net of tax		(3,618	)		(4,097	)		(2,544	)		1,373			(8,886	)
Net income (loss) from discontinued operations, net of tax		1,009			146			—			(726	)		429
Net income (loss)	$	(2,609	)	$	(3,951	)	$	(2,544	)	$	647		$	(8,457	)
Net income (loss) per common share:
Basic:
Net income (loss) from continuing operations, net of tax	$	(0.19	)	$	(0.22	)	$	(0.14	)	$	0.07		$	(0.47	)
Net income (loss) from discontinued operations, net of tax	$	0.05		$	0.01		$	—		$	(0.03	)	$	0.02
Net income (loss)	$	(0.14	)	$	(0.21	)	$	(0.14	)	$	0.04		$	(0.45	)
Diluted:
Net income (loss) from continuing operations, net of tax	$	(0.19	)	$	(0.22	)	$	(0.13	)	$	0.07		$	(0.46	)
Net income (loss) from discontinued operations, net of tax	$	0.05		$	0.01		$	(0.01	)	$	(0.04	)	$	0.03
Net income (loss)	$	(0.14	)	$	(0.21	)	$	(0.14	)	$	(0.03	)	$	(0.43	)
2011
Net sales	$	(9,454	)	$	(8,454	)	$	(5,796	)	$	(4,446	)	$	(28,150	)
Cost of sales		6			(431	)		(728	)		4,061			2,908
Gross profit		(9,460	)		(8,023	)		(5,068	)		(8,507	)		(31,058	)
Operating expense		(1,357	)		(986	)		(2,436	)		(870	)		(5,649	)
Operating income		(8,103	)		(7,037	)		(2,632	)		(7,637	)		(25,409	)
Net income (loss) from continuing operations, net of tax		(5,009	)		(3,940	)		(1,651	)		(3,878	)		(14,478	)
Net income (loss) from discontinued operations, net of tax		(657	)		(623	)		(652	)		(627	)		(2,559	)
Net income (loss)	$	(5,666	)	$	(4,563	)	$	(2,303	)	$	(4,505	)	$	(17,037	)
Net income (loss) per common share:
Basic:
Net income (loss) from continuing operations, net of tax	$	(0.28	)	$	(0.22	)	$	(0.09	)	$	(0.20	)	$	(0.79	)
Net income (loss) from discontinued operations, net of tax	$	(0.03	)	$	(0.04	)	$	(0.04	)	$	(0.04	)	$	(0.14	)
Net income (loss)	$	(0.31	)	$	(0.26	)	$	(0.13	)	$	(0.24	)	$	(0.93	)
Diluted:
Net income (loss) from continuing operations, net of tax	$	(0.28	)	$	(0.22	)	$	(0.09	)	$	(0.21	)	$	(0.79	)
Net income (loss) from discontinued operations, net of tax	$	(0.03	)	$	(0.03	)	$	(0.03	)	$	(0.03	)	$	(0.14	)
Net income (loss)	$	(0.31	)	$	(0.25	)	$	(0.12	)	$	(0.24	)	$	(0.93	)

(1) Includes $46 million of charges related to U.S. Government resolutions

(2) Includes $10.5 million of charges related to U.S. Government resolutions

Condensed Consolidated Balance Sheets

As Restated

(U.S. Dollars, in thousands, except share and per share data)	1st Quarter		2nd Quarter		3rd Quarter		4th Quarter
	(Restated)		(Restated)		(Restated)		(Restated)
2012
Total assets	$	694,106	$	530,395	$	539,566	$	472,897
Total liabilities		381,734		205,196		193,599		105,065
Total shareholders’ equity		312,372		325,199		345,967		367,832
Total liabilities and shareholders’ equity	$	694,106	$	530,395	$	539,566	$	472,897
2011
Total assets	$	618,938	$	632,860	$	639,868	$	685,380
Total liabilities		354,949		352,884		347,777		393,306
Total shareholders’ equity		263,989		279,976		292,091		292,074
Total liabilities and shareholders’ equity	$	618,938	$	632,860	$	639,868	$	685,380

Condensed Consolidated Balance Sheets

As Previously Reported

(U.S. Dollars, in thousands, except share and per share data)	1st Quarter		2nd Quarter		3rd Quarter		4th Quarter
2012
Total assets	$	707,586	$	553,320	$	565,073	$	504,281
Total liabilities		369,178		199,104		187,463		105,183
Total shareholders’ equity		338,408		354,216		377,610		399,098
Total liabilities and shareholders’ equity	$	707,586	$	553,320	$	565,073	$	504,281
2011
Total assets	$	631,284	$	647,026	$	656,073	$	704,472
Total liabilities		354,201		349,116		345,130		389,301
Total shareholders’ equity		277,083		297,910		310,943		315,171
Total liabilities and shareholders’ equity	$	631,284	$	647,026	$	656,073	$	704,472

Condensed Consolidated Balance Sheets

Restatement Adjustments

(U.S. Dollars, in thousands, except share and per share data)	1st Quarter			2nd Quarter			3rd Quarter			4th Quarter
2012
Total assets	$	(13,480	)	$	(22,925	)	$	(25,507	)	$	(31,384	)
Total liabilities		12,556			6,092			6,136			(118	)
Total shareholders’ equity		(26,036	)		(29,017	)		(31,643	)		(31,266	)
Total liabilities and shareholders’ equity	$	(13,480	)	$	(22,925	)	$	(25,507	)	$	(31,384	)
2011
Total assets	$	(12,346	)	$	(14,166	)	$	(16,205	)	$	(19,092	)
Total liabilities		748			3,768			2,647			4,005
Total shareholders’ equity		(13,094	)		(17,934	)		(18,852	)		(23,097	)
Total liabilities and shareholders’ equity	$	(12,346	)	$	(14,166	)	$	(16,205	)	$	(19,092	)