Revenue recognition and accounts receivable (Tables)

12 Months Ended

Dec. 31, 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 Topic 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 consolidated statement of income for the year ended December 31, 2018 as a result of the adoption of Topic 606.

	Year Ended December 31, 2018
(U.S. Dollars, in thousands)	Based on historical accounting under Topic 605			Impact of adoption			As reported under Topic 606
Net sales	$	445,343		$	7,699		$	453,042
Cost of sales		95,145			1,483			96,628
Gross profit		350,198			6,216			356,414
Sales and marketing		205,538			(11	)		205,527
Other operating expenses		120,793			—			120,793
Operating income	$	23,867		$	6,227		$	30,094
Income tax expense		(7,656	)		(1,418	)		(9,074	)
Net income from continuing operations	$	9,002		$	4,809		$	13,811
Net income from continuing operations per common share—basic	$	0.48		$	0.25		$	0.73
Net income from continuing operations per common share—diluted	$	0.47		$	0.25		$	0.72

Schedule of Net Sales

The table below presents net sales, which includes product sales and marketing service fees, for each of the years ended December 31, 2018, 2017, and 2016.

	For the year ended December 31,
(U.S. Dollars, in thousands)	2018		2017		2016
Product sales	$	395,589	$	373,538	$	355,652
Marketing service fees		57,453		60,285		54,136
Net sales	$	453,042	$	433,823	$	409,788