Income taxes (Tables)
|
12 Months Ended |
Dec. 31, 2014
|
Income Tax Disclosure [Abstract] |
|
Schedule of Income from Continuing Operations Before Provision for Income Taxes |
Income from continuing operations before provision for income taxes consisted of:
|
|
Year Ended
December 31, |
|
(U.S. Dollars in thousands) |
|
2014 |
|
|
2013 |
|
|
2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
|
$ |
17,532 |
|
|
$ |
(3,546 |
) |
|
$ |
56,210 |
|
Non-U.S. |
|
|
(5,076 |
) |
|
|
(7,057 |
) |
|
|
12,855 |
|
Total income (loss) before taxes |
|
$ |
12,456 |
|
|
$ |
(10,603 |
) |
|
$ |
69,065 |
|
|
Schedule of Provision for (Benefit from) Income Taxes on Continuing Operations |
The provision for (benefit from) income taxes on continuing operations in the accompanying consolidated statements of operations consists of the following:
|
|
Year Ended
December 31, |
|
(U.S. Dollars in thousands) |
|
2014 |
|
|
2013 |
|
|
2012 |
|
U.S. |
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
$ |
5,067 |
|
|
$ |
2,465 |
|
|
$ |
16,982 |
|
Deferred |
|
|
2,825 |
|
|
|
4,013 |
|
|
|
2,675 |
|
Total U.S |
|
|
7,892 |
|
|
|
6,478 |
|
|
|
19,657 |
|
Non-U.S. |
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
|
18,186 |
|
|
|
2,308 |
|
|
|
3,191 |
|
Deferred |
|
|
(9,878 |
) |
|
|
(1,184 |
) |
|
|
1,096 |
|
|
|
|
8,308 |
|
|
|
1,124 |
|
|
|
4,287 |
|
Total tax expense |
|
$ |
16,200 |
|
|
$ |
7,602 |
|
|
$ |
23,944 |
|
|
Schedule of Tax Effects of Significant Temporary Differences Comprising Deferred Tax Assets and Liabilities |
Deferred income taxes are provided primarily for net operating loss carryforwards and for temporary differences resulting from items that are recognized in different years for financial statement and income tax reporting purposes. The deferred tax assets and liabilities are as follows:
(U.S. Dollars in thousands) |
|
2014 |
|
|
2013 |
|
Intangible assets and goodwill |
|
$ |
4,067 |
|
|
$ |
4,798 |
|
Inventories and related reserves |
|
|
19,525 |
|
|
|
20,769 |
|
Deferred revenue and cost of goods sold |
|
|
10,826 |
|
|
|
11,577 |
|
Other accruals and reserves |
|
|
5,371 |
|
|
|
4,778 |
|
Accrued compensation |
|
|
5,004 |
|
|
|
3,942 |
|
Allowance for doubtful accounts |
|
|
2,094 |
|
|
|
2,040 |
|
Accrued interest |
|
|
17,555 |
|
|
|
18,063 |
|
Net operating loss carryforwards |
|
|
34,514 |
|
|
|
34,979 |
|
Other, net |
|
|
1,202 |
|
|
|
893 |
|
|
|
|
100,158 |
|
|
|
101,839 |
|
Valuation allowance |
|
|
(37,438 |
) |
|
|
(31,772 |
) |
Deferred tax asset |
|
$ |
62,720 |
|
|
$ |
70,067 |
|
Withholding taxes |
|
|
(229 |
) |
|
|
(13,026 |
) |
Property, plant and equipment |
|
|
(6,766 |
) |
|
|
(7,674 |
) |
Deferred tax liability |
|
|
(6,995 |
) |
|
|
(20,700 |
) |
Net deferred tax assets |
|
$ |
55,725 |
|
|
$ |
49,367 |
|
|
|
|
|
|
|
|
|
|
Reported as: |
|
|
|
|
|
|
|
|
Current deferred tax assets |
|
|
37,413 |
|
|
|
39,999 |
|
Non-current deferred tax assets |
|
|
18,541 |
|
|
|
22,394 |
|
Current deferred tax liability |
|
|
— |
|
|
|
— |
|
Non-current deferred tax liability |
|
|
(229 |
) |
|
|
(13,026 |
) |
Net deferred tax assets |
|
$ |
55,725 |
|
|
$ |
49,367 |
|
|
Schedule of Effective Income Tax Rate Reconciliation for Continuing Operations |
The rate reconciliation for continuing operations presented below is based on the U.S. federal income tax rate, rather than the parent company’s country of domicile tax rate. Management believes, given the large proportion of taxable income earned in the United States, such disclosure is more meaningful.
(U.S. Dollars in thousands, except percentages) |
|
2014 |
|
|
2013 |
|
|
2012 |
|
|
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
Statutory U.S. federal income tax rate |
|
$ |
4,360 |
|
|
|
35.0 |
% |
|
$ |
(3,711 |
) |
|
|
35.0 |
% |
|
$ |
24,179 |
|
|
|
35.0 |
% |
State taxes, net of federal benefit |
|
|
1,439 |
|
|
|
11.6 |
|
|
|
2,039 |
|
|
|
(19.2 |
) |
|
|
2,536 |
|
|
|
3.7 |
|
Foreign rate differential, including withholding taxes |
|
|
2,738 |
|
|
|
21.9 |
|
|
|
1,162 |
|
|
|
(11.0 |
) |
|
|
(10 |
) |
|
|
(0.0 |
) |
Valuation allowance |
|
|
8,672 |
|
|
|
69.6 |
|
|
|
3,913 |
|
|
|
(36.9 |
) |
|
|
6,189 |
|
|
|
9.0 |
|
Italian subsidiary intangible asset |
|
|
(2,546 |
) |
|
|
(20.4 |
) |
|
|
(2,288 |
) |
|
|
21.6 |
|
|
|
(2,214 |
) |
|
|
(3.2 |
) |
Goodwill impairment |
|
|
— |
|
|
|
— |
|
|
|
6,452 |
|
|
|
(60.9 |
) |
|
|
— |
|
|
|
— |
|
Domestic manufacturing deduction |
|
|
(377 |
) |
|
|
(3.0 |
) |
|
|
(233 |
) |
|
|
2.2 |
|
|
|
(1,567 |
) |
|
|
(2.3 |
) |
Settlement of U.S. Government resolutions |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,260 |
) |
|
|
(1.8 |
) |
Italian audit settlement |
|
|
1,048 |
|
|
|
8.4 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other, net |
|
|
866 |
|
|
|
7.0 |
|
|
|
268 |
|
|
|
(2.5 |
) |
|
|
(3,909 |
) |
|
|
(5.7 |
) |
Income tax expense/effective rate |
|
$ |
16,200 |
|
|
|
130.1 |
% |
|
$ |
7,602 |
|
|
|
(71.7 |
)% |
|
$ |
23,944 |
|
|
|
34.7 |
% |
|
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, 2014 and December 31, 2013 follows:
(U.S. Dollars in thousands) |
|
2014 |
|
|
2013 |
|
Balance as of January 1, |
|
$ |
723 |
|
|
$ |
1,189 |
|
Additions for current year tax positions |
|
|
14,794 |
|
|
|
183 |
|
Increases (decreases) for prior year tax positions |
|
|
145 |
|
|
|
(12 |
) |
Settlements of prior year tax positions |
|
|
— |
|
|
|
(560 |
) |
Expiration of statutes |
|
|
(65 |
) |
|
|
(77 |
) |
Balance as of December 31, |
|
$ |
15,597 |
|
|
$ |
723 |
|
|