Income taxes (Tables)

12 Months Ended

Dec. 31, 2020

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

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

	Year Ended December 31,
(U.S. Dollars, in thousands)	2020			2019			2018
U.S.	$	5,556		$	(24,890	)	$	28,642
Non-U.S.		(5,924	)		(2,159	)		(5,757	)
Income (loss) before income taxes	$	(368	)	$	(27,049	)	$	22,885

Schedule of Provision for Income Taxes on Continuing Operations

The provision for income taxes on continuing operations consists of the following:

	Year Ended December 31,
(U.S. Dollars, in thousands)	2020			2019			2018
U.S.
Current	$	(15,054	)	$	(1,911	)	$	9,480
Deferred		(29	)		2,008			(3,430	)
		(15,083	)		97			6,050
Non-U.S.
Current		1,382			1,931			2,255
Deferred		10,816			(615	)		769
		12,198			1,316			3,024
Income tax expense (benefit)	$	(2,885	)	$	1,413		$	9,074

Schedule of Effective Income Tax Rate Reconciliation for Continuing Operations

The differences between the income tax provision at the U.S. federal statutory tax rate and the Company’s effective tax rate for the years ended December 31, 2020, 2019, and 2018 consist of the following:

	2020						2019						2018
(U.S. Dollars, in thousands, except percentages)	Amount			Percent			Amount			Percent			Amount			Percent
Statutory U.S. federal income tax rate	$	(77	)		21.0	%	$	(5,680	)		21.0	%	$	4,806			21.0	%
State taxes, net of U.S. federal benefit		1,151			(312.8	)		1,043			(3.9	)		1,038			4.5
Foreign rate differential, including withholding taxes		(147	)		40.0			131			(0.5	)		784			3.4
Valuation allowances, net		14,514			(3,944.0	)		(165	)		0.6			4,116			18.0
Research credits		(982	)		266.8			(829	)		3.1			(710	)		(3.1	)
Italian subsidiary intangible asset		—			—			—			—			(230	)		(1.0	)
Unrecognized tax benefits, net of settlements		(17,321	)		4,706.8			(2,745	)		10.1			81			0.4
Impact of the Tax Act		—			—			—			—			(560	)		(2.4	)
Equity compensation		1,657			(450.3	)		626			(2.3	)		(1,646	)		(7.2	)
Executive compensation		375			(101.9	)		1,504			(5.6	)		606			2.6
Contingent consideration		(1,460	)		396.7			5,678			(21.0	)		528			2.3
Other, net		(595	)		161.7			1,850			(6.7	)		261			1.2
Income tax expense (benefit) /effective rate	$	(2,885	)		784.0	%	$	1,413			(5.2	)%	$	9,074			39.7	%

Schedule of Deferred Tax Assets and Liabilities

The Company’s deferred tax assets and liabilities are as follows:

	December 31,
(U.S. Dollars, in thousands)	2020			2019
Intangible assets and goodwill	$	2,475		$	1,390
Inventories and related reserves		17,585			13,216
Deferred revenue and cost of goods sold		4,035			4,652
Other accruals and reserves		4,061			4,337
Accrued compensation		8,734			9,221
Provision for expected credit losses		1,178			971
Net operating loss and tax credit carryforwards		42,569			44,230
Lease liabilities		6,033			6,268
Other, net		500			1,567
		87,170			85,852
Valuation allowance		(50,496	)		(38,741	)
Deferred tax asset	$	36,674		$	47,111
Withholding taxes		(40	)		(40	)
Property, plant and equipment		(5,975	)		(5,881	)
Right-of-use lease assets		(5,617	)		(6,073	)
Deferred tax liability		(11,632	)		(11,994	)
Net deferred tax assets	$	25,042		$	35,117

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, 2020, 2019, and 2018 follows:

(U.S. Dollars, in thousands)	2020			2019
Balance as of January 1,	$	16,904		$	21,351
Additions for current year tax positions		568			309
Increases for prior year tax positions		84			1,711
Settlements of prior year tax positions		(29	)		(1,183	)
Expiration of statutes		(12,898	)		(5,284	)
Balance as of December 31,	$	4,629		$	16,904