Derivative instruments

12 Months Ended

Dec. 31, 2014

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative instruments

9. Derivative instruments

The tables below disclose the types of derivative instruments the Company owns, the classifications and fair values of these instruments within the balance sheet, and the amount of gain (loss) recognized in other comprehensive income (loss) (“OCI”) or net income (loss).

(U.S. Dollars, in thousands)	Fair value:favorable (unfavorable)			Balance sheetlocation
As of December 31, 2014
Cross-currency swap	$	2,504		Other long-term assets
Warrants	$	321		Other long-term assets
As of December 31, 2013
Cross-currency swap	$	(1,036	)	Other long-term liabilities
Warrants	$	107		Other long-term assets

	For the year ended December 31,
(U.S. Dollars in thousands)	2014			2013			2012
Cross-currency swap gain (loss) recorded in other    comprehensive income (loss), net of taxes	$	251		$	(278	)	$	263
Warrants unrealized gain (loss) recorded in other    comprehensive income (loss), net of taxes	$	(3	)	$	(1	)	$	—

Cross-currency swap

On September 30, 2010, the Company entered into a cross-currency swap agreement (the “replacement swap agreement”) with JPMorgan Chase Bank and Royal Bank of Scotland PLC (the “counterparties”) to manage its cash flows related to foreign currency exposure for a portion of the Company’s intercompany receivable of a U.S. dollar functional currency subsidiary that is denominated in Euro.

Under the terms of the swap agreement, the Company pays Euros based on a €28.7 million notional value and a fixed rate of 5.00% and receives U.S. dollars based on a notional value of $35 million and a fixed rate of 4.635%. The expiration date is December 30, 2016, the date upon which the underlying intercompany debt, to which the swap agreement applies, matures. The swap agreement is designated as a cash flow hedge and therefore the Company recognized an unrealized gain (loss) on the change in fair value, net of tax, of which $0.3 million was recognized in other comprehensive income (loss).

Warrants

As of December 31, 2014, the Company purchased notes receivable from Bone Biologics, Inc. (“Bone Biologics”) totaling $750 thousand, all of which were issued with detachable warrants to purchase common stock of Bone Biologics. As of December 31, 2014 the Company held warrants for 125 thousand shares of Bone Biologics, at an exercise price of $1.00 per share.

Under the terms of the note and warrant purchase agreements, the warrants to purchase common stock in Bone Biologics are both detachable from the note, exercisable over a seven year period, and transferable by the holder to other parties.