Leases (Tables)

12 Months Ended

Dec. 31, 2019

A summary of the Company’s lease portfolio as of December 31, 2019 is presented in the table below:

(U.S. Dollars, in thousands, except lease term and discount rate)	Classification	December 31, 2019
Assets
Operating leases	Other long-term assets	$	5,798
Finance leases	Property, plant and equipment, net		20,207
Total lease assets		$	26,005
Liabilities
Current
Operating leases	Other current liabilities	$	1,875
Finance leases	Current portion of finance lease liability		323
Long-term
Operating leases	Other long-term liabilities		4,084
Finance leases	Long-term portion of finance lease liability		20,648
Total lease liabilities		$	26,930

Weighted Average Remaining Lease Term
Operating leases		4.2 years
Finance leases		20.7 years

Weighted Average Discount Rate
Operating leases			2.33	%
Finance leases			4.38	%

Summary of Components of Lease Costs

The components of lease costs were as follows:

(U.S. Dollars, in thousands)	For the Year Ended December 31, 2019
Finance lease costs:
Amortization of right-of-use assets	$	972
Interest on finance lease liabilities		919
Operating lease costs		2,161
Short-term lease costs		255
Variable lease costs		749
Total lease costs	$	5,056

Summary of Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to leases was as follows:

(U.S. Dollars, in thousands)	For the Year Ended December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	4,075
Operating cash flows from finance leases		919
Financing cash flows from finance leases		365
Right-of-use assets obtained in exchange for lease obligations
Operating leases		878
Finance leases		21,179

Summary of Remaining Lease Liabilities

A summary of the Company’s remaining lease liabilities as of December 31, 2019 is included below:

(U.S. Dollars, in thousands)	Operating Leases			Finance Leases
2020	$	1,979		$	1,013
2021		1,758			1,414
2022		1,409			1,442
2023		259			1,471
2024		143			1,501
Thereafter		686			25,706
Total undiscounted value of lease liabilities		6,234			32,547
Less: Interest		(275	)		(11,576	)
Present value of lease liabilities	$	5,959		$	20,971

Current portion of lease liabilities	$	1,875		$	323
Long-term portion of lease liabilities		4,084			20,648
Total lease liabilities	$	5,959		$	20,971

ASU 2016-02 [Member]

Summary of Net Impact of Adoption Balance Sheet

The net impact of adoption to the Company’s balance sheet as of January 1, 2019 is presented in the table below. The standard did not have a material impact to the Company’s consolidated statements of operations and comprehensive income (loss) or cash flows.

(U.S. Dollars, in thousands)	December 31, 2018		Impact of Adoption of ASC 842			January 1, 2019
Assets
Current assets
Cash, cash equivalents, and restricted cash	$	72,189	$	—		$	72,189
Accounts receivable, net		77,747		—			77,747
Inventories		76,847		—			76,847
Prepaid expenses and other current assets		17,856		(15	)		17,841
Total current assets		244,639		(15	)		244,624
Property, plant, and equipment, net		42,835		—			42,835
Intangible assets, net and goodwill		124,298		—			124,298
Deferred income taxes		33,228		71			33,299
Other long-term assets		21,641		20,209			41,850
Total assets	$	466,641	$	20,265		$	486,906
Liabilities and shareholders’ equity
Current liabilities
Accounts payable	$	17,989	$	—		$	17,989
Other current liabilities		67,919		2,166			70,085
Total current liabilities		85,908		2,166			88,074
Other long-term liabilities		45,336		18,028			63,364
Total liabilities	$	131,244	$	20,194		$	151,438
Shareholders’ equity
Common shares		1,858		—			1,858
Additional paid-in capital		243,165		—			243,165
Retained earnings		87,078		71			87,149
Accumulated other comprehensive income		3,296		—			3,296
Total shareholders’ equity		335,397		71			335,468
Total liabilities and shareholders’ equity	$	466,641	$	20,265		$	486,906