Income taxes (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of Income (Loss) from Continuing Operations Before Provision for Income Taxes

Income (loss) from continuing operations before provision for income taxes consisted of:

	Year Ended December 31,
(U.S. Dollars in thousands)	2015			2014			2013

U.S.	$	15,480		$	17,532		$	(3,546	)
Non-U.S.		(6,973	)		(5,076	)		(7,057	)
Total income (loss) before taxes	$	8,507		$	12,456		$	(10,603	)

Schedule of Provision for (Benefit from) Income Taxes on Continuing Operations

The provision for (benefit from) income taxes on continuing operations in the accompanying consolidated statements of operations consists of the following:

	Year Ended December 31,
(U.S. Dollars in thousands)	2015			2014			2013
U.S.
Current	$	6,792		$	5,067		$	2,465
Deferred		(1,146	)		2,825			4,013
Total U.S		5,646			7,892			6,478
Non-U.S.
Current		3,661			18,186			2,308
Deferred		1,542			(9,878	)		(1,184	)
		5,203			8,308			1,124
Total tax expense	$	10,849		$	16,200		$	7,602

Schedule of Tax Effects of Significant Temporary Differences Comprising Deferred Tax Assets and Liabilities

Deferred income taxes are provided primarily for net operating loss carryforwards and for temporary differences resulting from items that are recognized in different years for financial statement and income tax reporting purposes. The Company’s deferred tax assets and liabilities are as follows:

	December 31,
(U.S. Dollars in thousands)	2015			2014
Intangible assets and goodwill	$	2,931		$	4,067
Inventories and related reserves		17,640			19,525
Deferred revenue and cost of goods sold		11,189			10,826
Other accruals and reserves		7,729			5,371
Accrued compensation		2,964			5,004
Allowance for doubtful accounts		2,863			2,094
Accrued interest		17,300			17,555
Net operating loss carryforwards		38,010			34,514
Other, net		4,441			1,202
		105,067			100,158
Valuation allowance		(43,340	)		(37,438	)
Deferred tax asset	$	61,727		$	62,720
Withholding taxes		(253	)		(229	)
Property, plant and equipment		(4,168	)		(6,766	)
Deferred tax liability		(4,421	)		(6,995	)
Net deferred tax assets	$	57,306		$	55,725

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 parent company’s country of domicile tax rate. Management believes, given the large proportion of taxable income earned in the United States, such disclosure is more meaningful.

(U.S. Dollars in thousands, except percentages)	2015						2014						2013
	Amount			Percent			Amount			Percent			Amount			Percent
Statutory U.S. federal income tax rate	$	2,978			35	%	$	4,360			35.0	%	$	(3,711	)		35.0	%
State taxes, net of U.S. federal benefit		521			6.1			1,439			11.6			2,039			(19.2	)
Foreign rate differential, including withholding taxes		(1,934	)		(22.7	)		2,386			19.1			747			(7.0	)
Valuation allowance		10,952			128.7			8,672			69.6			3,913			(36.9	)
Italian subsidiary intangible asset		(2,076	)		(24.4	)		(2,546	)		(20.4	)		(2,288	)		21.6
Goodwill impairment		—			—			—			—			6,452			(60.9	)
Domestic manufacturing deduction		(469	)		(5.5	)		(377	)		(3.0	)		(233	)		2.2
Italian audit settlement		—			—			1,048			8.4			—			—
Other, net		877			10.3			1,218			9.8			683			(6.5	)
Income tax expense/effective rate	$	10,849			127.5	%	$	16,200			130.1	%	$	7,602			(71.7	)%

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, 2015 and December 31, 2014 follows:

(U.S. Dollars in thousands)	2015			2014
Balance as of January 1,	$	15,597		$	723
Additions for current year tax positions		332			14,794
Increases (decreases) for prior year tax positions		(86	)		145
Settlements of prior year tax positions		—			—
Expiration of statutes		(80	)		(65	)
Balance as of December 31,	$	15,763		$	15,597