Revenue recognition and accounts receivable (Tables)

3 Months Ended

Mar. 31, 2020

Revenue Recognition And Accounts Receivable [Line Items]

Schedule of Net Sales by Major Product Category by Reporting Segment

The table below presents net sales by major product category by reporting segment:

	Three Months Ended March 31,
(U.S. Dollars, in thousands)	2020		2019		Change
Bone Growth Therapies	$	45,443	$	47,283		-3.9	%
Spinal Implants		22,926		22,903		0.1	%
Biologics		13,949		15,732		-11.3	%
Global Spine		82,318		85,918		-4.2	%
Global Extremities		22,505		23,194		-3.0	%
Net sales	$	104,823	$	109,112		-3.9	%

Schedule of Components Net Sales

The table below presents product sales and marketing service fees, which are both components of net sales:

	Three Months Ended March 31,
(U.S. Dollars, in thousands)	2020		2019
Product sales	$	91,421	$	93,934
Marketing service fees		13,402		15,178
Net sales	$	104,823	$	109,112

Allowances for Expected Credit Losses

The following table provides a detail of changes in the Company’s allowance for expected credit losses for the three months ended March 31, 2020:

(U.S. Dollars, in thousands)	2020
Allowance for expected credit losses at December 31, 2019	$	3,987
Impact of adoption of ASU 2016-13		1,120
Current period provision for expected credit losses		679
Writeoffs charged against the allowance and other		(114	)
Effect of changes in foreign exchange rates		(81	)
Allowance for expected credit losses at March 31, 2020	$	5,591

ASU 2016-13 [Member]

Revenue Recognition And Accounts Receivable [Line Items]

Schedule of Net Impact of Adoption to Balance Sheet

The net impact of adoption to the Company’s balance sheet as of January 1, 2020 is presented in the table below. The standard did not have a material impact to the Company’s condensed consolidated statements of income or cash flows.

(U.S. Dollars, in thousands)	December 31, 2019			Impact of Adoption of ASC 326			January 1, 2020
Assets
Current assets
Cash, cash equivalents, and restricted cash	$	70,403		$	—		$	70,403
Accounts receivable, net		86,805			(1,120	)		85,685
Inventories		82,397			—			82,397
Prepaid expenses and other current assets		20,948			—			20,948
Total current assets		260,553			(1,120	)		259,433
Deferred income taxes		35,117			233			35,350
Other long-term assets		199,950			—			199,950
Total assets	$	495,620		$	(887	)	$	494,733
Liabilities and shareholders’ equity
Total liabilities	$	167,989		$	—		$	167,989
Shareholders’ equity
Common shares	$	1,902		$	—		$	1,902
Additional paid-in capital		271,019			—			271,019
Retained earnings		57,749			(887	)		56,862
Accumulated other comprehensive loss		(3,039	)		—			(3,039	)
Total shareholders’ equity		327,631			(887	)		326,744
Total liabilities and shareholders’ equity	$	495,620		$	(887	)	$	494,733