Income taxes (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Income (Loss) Before Provision for Income Taxes

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

	Year Ended December 31,
(U.S. Dollars, in thousands)	2021			2020			2019
U.S.	$	(5,987	)	$	5,556		$	(24,890	)
Non-U.S.		(7,508	)		(5,924	)		(2,159	)
Income (loss) before income taxes	$	(13,495	)	$	(368	)	$	(27,049	)

Schedule of Provision for Income Taxes

The provision for income taxes consists of the following:

	Year Ended December 31,
(U.S. Dollars, in thousands)	2021			2020			2019
U.S.
Current	$	(607	)	$	(15,054	)	$	(1,911	)
Deferred		24,292			(29	)		2,008
		23,685			(15,083	)		97
Non-U.S.
Current		1,009			1,382			1,931
Deferred		190			10,816			(615	)
		1,199			12,198			1,316
Income tax expense (benefit)	$	24,884		$	(2,885	)	$	1,413

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, 2021, 2020, and 2019, consist of the following:

	2021						2020						2019
(U.S. Dollars, in thousands, except percentages)	Amount			Percent			Amount			Percent			Amount			Percent
Statutory U.S. federal income tax rate	$	(2,834	)		21.0	%	$	(77	)		21.0	%	$	(5,680	)		21.0	%
State taxes, net of U.S. federal benefit		(24	)		0.2			1,151			(312.8	)		1,043			(3.9	)
Foreign rate differential, including withholding taxes		480			(3.6	)		(147	)		39.9			131			(0.5	)
Valuation allowances, net		27,819			(206.1	)		14,514			(3,944.0	)		(165	)		0.6
Research credits		(537	)		4.0			(982	)		266.8			(829	)		3.1
Unrecognized tax benefits, net of settlements		(1,363	)		10.1			(17,321	)		4,706.8			(2,745	)		10.1
Equity compensation		1,091			(8.1	)		1,657			(450.3	)		626			(2.3	)
Executive compensation		456			(3.4	)		375			(101.9	)		1,504			(5.6	)
Contingent consideration		(640	)		4.7			(1,460	)		396.7			5,678			(21.0	)
Other, net		436			(3.2	)		(595	)		161.8			1,850			(6.7	)
Income tax expense (benefit) /effective rate	$	24,884			(184.4	)%	$	(2,885	)		784.0	%	$	1,413			(5.2	)%

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)	2021			2020
Intangible assets and goodwill	$	5,245		$	2,475
Inventories and related reserves		17,097			17,585
Deferred revenue and cost of goods sold		3,888			4,035
Other accruals and reserves		3,082			4,061
Accrued compensation		7,784			8,734
Provision for expected credit losses		1,217			1,178
Net operating loss and tax credit carryforwards		42,546			42,569
Lease liabilities		5,691			6,033
Other, net		1,423			500
Total deferred tax assets		87,973			87,170
Valuation allowance		(76,725	)		(50,496	)
Deferred tax asset, net of valuation allowance	$	11,248		$	36,674
Withholding taxes		(10	)		(40	)
Property, plant, and equipment		(5,380	)		(5,975	)
Right-of-use lease assets		(5,165	)		(5,617	)
Deferred tax liability		(10,555	)		(11,632	)
Net deferred tax assets	$	693		$	25,042

Reported as:
Deferred income tax assets		1,771			25,042
Deferred income tax liabilities (classified within other long-term liabilities)		(1,078	)		—
Net deferred tax assets	$	693		$	25,042

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, 2021, and 2020, is shown below:

(U.S. Dollars, in thousands)	2021			2020
Balance as of January 1,	$	4,629		$	16,904
Additions for current year tax positions		45			568
Increases for prior year tax positions		110			84
Settlements of prior year tax positions		—			(29	)
Expiration of statutes		(1,322	)		(12,898	)
Balance as of December 31,	$	3,462		$	4,629