Revenue recognition and accounts receivable (Tables)

6 Months Ended

Jun. 30, 2018

Revenue Recognition And Accounts Receivable [Abstract]

Summary of Cumulative Impact of Adoption under Topic 606

The Company recorded a net increase to opening retained earnings of $4.8 million as of January 1, 2018 due to the cumulative impact of adopting Topic 606 as presented in the table below.

(U.S. Dollars, in thousands)	December 31, 2017		Impact of Adoption of ASC 606			January 1, 2018
Assets
Current assets
Cash and cash equivalents	$	81,157	$	—		$	81,157
Accounts receivable, net		63,437		8,648			72,085
Inventories		81,330		(2,338	)		78,992
Prepaid expenses and other current assets		25,877		—			25,877
Total current assets		251,801		6,310			258,111
Deferred income taxes		23,315		(1,549	)		21,766
Other long-term assets		130,238		—			130,238
Total assets	$	405,354	$	4,761		$	410,115
Liabilities and shareholders’ equity
Total liabilities		108,746		—			108,746
Shareholders’ equity
Common shares		1,828		—			1,828
Additional paid-in capital		220,591		—			220,591
Retained earnings		70,402		4,761			75,163
Accumulated other comprehensive income		3,787		—			3,787
Total shareholders’ equity		296,608		4,761			301,369
Total liabilities and shareholders’ equity	$	405,354	$	4,761		$	410,115

The table below presents the impact to the Company’s condensed consolidated statement of income for the three and six months ended June 30, 2018 as a result of the adoption of Topic 606.

	Three Months Ended June 30, 2018									Six Months Ended June 30, 2018
(U.S. Dollars, in thousands)	Based on historical accounting under Topic 605			Impact of adoption			As reported under Topic 606			Based on historical accounting under Topic 605			Impact of adoption			As reported under Topic 606
Net sales	$	113,400		$	(1,853	)	$	111,547		$	214,762		$	5,494		$	220,256
Cost of sales		23,075			(240	)		22,835			45,191			1,791			46,982
Gross profit		90,325			(1,613	)		88,712			169,571			3,703			173,274
Sales and marketing		51,614			(85	)		51,529			101,975			(178	)		101,797
Other operating expenses		30,159			—			30,159			56,580			—			56,580
Operating income	$	8,552		$	(1,528	)	$	7,024		$	11,016		$	3,881		$	14,897
Income tax expense		(1,694	)		606			(1,088	)		(5,612	)		(849	)		(6,461	)
Net income from continuing operations	$	1,855		$	(922	)	$	933		$	3,130		$	3,032		$	6,162
Net income from continuing operations per common share—basic	$	0.10		$	(0.05	)	$	0.05		$	0.17		$	0.16		$	0.33
Net income from continuing operations per common share—diluted	$	0.10		$	(0.05	)	$	0.05		$	0.16		$	0.16		$	0.32

Schedule of Net Sales

The table below presents net sales, which includes product sales and marketing service fees, for the three and six months ended June 30, 2018 and 2017.

	Three Months Ended June 30,				Six Months Ended June 30,
(U.S. Dollars, in thousands)	2018		2017		2018		2017
Product sales	$	97,453	$	93,908	$	192,342	$	182,309
Marketing service fees		14,094		15,034		27,914		29,371
Net sales	$	111,547	$	108,942	$	220,256	$	211,680