Segment Reporting

12 Months Ended

Dec. 31, 2011

Segment Reporting [Abstract]

Segment Reporting Disclosure

SEGMENT REPORTING

The Company has five reportable segments: U.S. Operations, Swiss Operations, Western European Operations, Chinese Operations and Other. U.S. Operations represent certain of the Company’s marketing and producing organizations located in the United States. Western European Operations include the Company’s marketing and producing organizations in Western Europe, excluding operations located in Switzerland. Swiss Operations include marketing and producing organizations located in Switzerland as well as extensive R&D operations that are responsible for the development, production and marketing of precision instruments, including weighing, analytical and measurement technologies for use in a variety of industrial and laboratory applications. Chinese Operations represent the Company’s marketing and producing organizations located in China. The Company’s market organizations are geographically focused and are responsible for all aspects of the Company’s sales and service. Operating segments that exist outside these reportable segments are included in Other.

The accounting policies of the operating segments are the same as those described in the summary of significant accounting policies. The Company evaluates performance based on segment profit for segment reporting (gross profit less research and development and selling, general and administrative expenses, before amortization, interest expense, restructuring charges, other charges (income), net and taxes). Inter-segment sales and transfers are priced to reflect consideration of market conditions and the regulations of the countries in which the transferring entities are located.

The following tables show the operations of the Company’s operating segments:

For the Year Ended December 31, 2011	Net Sales to External Customers		Net Sales to Other Segments			Total Net Sales			Segment Profit			Depreciation		Total Assets			Purchase of Property, Plant and Equipment			Goodwill
U.S. Operations	$	665,245	$	80,013		$	745,258		$	121,398		$	5,757	$	1,037,176		$	(6,926	)	$	307,485
Swiss Operations	143,520		411,788			555,308			113,997			7,581		812,416			(8,178		)	22,986
Western European Operations	692,348		107,585			799,933			99,969			5,065		953,728			(4,962		)	101,899
Chinese Operations	388,592		126,550			515,142			120,857			4,920		366,450			(15,601		)	710
Other(a)	419,623		6,348			425,971			50,045			2,161		331,613			(4,088		)	14,663
Eliminations and Corporate(b)	—		(732,284		)	(732,284		)	(107,763		)	6,205		(1,297,909		)	(58,745		)	—
Total	$	2,309,328	$	—		$	2,309,328		$	398,503		$	31,689	$	2,203,474		$	(98,500	)	$	447,743

For the Year Ended December 31, 2010	Net Sales to External Customers		Net Sales to Other Segments			Total Net Sales			Segment Profit			Depreciation		Total Assets			Purchase of Property, Plant and Equipment			Goodwill
U.S. Operations	$	618,809	$	60,847		$	679,656		$	121,013		$	5,828	$	912,758		$	(9,204	)	$	306,138
Swiss Operations	113,488		343,003			456,491			96,568			6,405		772,498			(11,870		)	20,579
Western European Operations	600,933		91,322			692,255			85,120			4,649		903,964			(3,509		)	93,236
Chinese Operations	298,637		105,906			404,543			92,969			5,138		353,285			(13,605		)	678
Other(a)	336,311		4,338			340,649			35,166			1,854		199,100			(2,024		)	14,068
Eliminations and Corporate(b)	—		(605,416		)	(605,416		)	(79,394		)	5,812		(858,542		)	(33,731		)	—
Total	$	1,968,178	$	—		$	1,968,178		$	351,442		$	29,686	$	2,283,063		$	(73,943	)	$	434,699

For the Year Ended December 31, 2009	Net Sales to External Customers		Net Sales to Other Segments			Total Net Sales			Segment Profit			Depreciation		Total Assets			Purchase of Property, Plant and Equipment			Goodwill
U.S. Operations	$	539,944	$	48,495		$	588,439		$	105,703		$	6,203	$	805,466		$	(5,143	)	$	319,303
Swiss Operations	107,472		288,797			396,269			81,476			6,712		586,583			(4,983		)	18,649
Western European Operations	574,109		76,141			650,250			72,201			5,333		928,141			(2,004		)	89,494
Chinese Operations	232,643		70,971			303,614			69,617			4,493		214,083			(3,360		)	649
Other(a)	274,685		3,974			278,659			25,538			2,245		164,638			(1,268		)	12,855
Eliminations and Corporate(b)	—		(488,378		)	(488,378		)	(60,060		)	4,648		(980,124		)	(43,283		)	—
Total	$	1,728,853	$	—		$	1,728,853		$	294,475		$	29,634	$	1,718,787		$	(60,041	)	$	440,950

_______________________________________

(a) Other includes reporting units in Eastern Europe, Latin America, Southeast Asia and other countries.

(b) Eliminations and Corporate includes the elimination of inter-segment transactions as well as certain corporate expenses and intercompany investments, which are not included in the Company’s operating segments.

A reconciliation of earnings before taxes to segment profit follows:

	2011		2010		2009
Earnings before taxes	$	349,177	$	307,513	$	224,762
Amortization	17,808		14,842		11,844
Interest expense	23,226		20,057		25,117
Restructuring charges	5,912		4,866		31,368
Other charges (income), net	2,380		4,164		1,384
Segment profit	$	398,503	$	351,442	$	294,475

During 2011 restructuring charges of $5.9 million were recognized, of which $1.1 million, $0.5 million, $3.1 million, $0.5 million, $0.6 million and $0.1 million relate to the Company’s U.S., Swiss, Western European, Chinese, Other and Corporate operations, respectively. The cumulative amount of restructuring charges recognized under the program totaled $48.6 million as of December 31, 2011, of which $10.4 million, $2.7 million, $26.2 million, $1.6 million, $6.6 million and $1.1 million relate to the Company’s U.S., Swiss, Western European, Chinese, Other and Corporate operations, respectively.

The Company sells precision instruments, including weighing instruments and certain analytical and measurement technologies, and related services to a variety of customers and industries. None of these customers account for more than 2% of net sales. Service revenues are primarily derived from repair and other services including regulatory compliance qualification, calibration, certification and preventative maintenance.

A breakdown of the Company’s sales by category for the years ended December 31 follows:

	2011		2010		2009
Weighing-related instruments	$	1,084,776	$	901,285	$	766,636
Non-weighing instruments	739,534		622,798		538,077
Service	485,018		444,095		424,140
Total net sales	$	2,309,328	$	1,968,178	$	1,728,853

In certain circumstances, our operating segments sell directly into other geographies. A breakdown of net sales to external customers by geographic customer destination and property, plant and equipment, net for the years ended December 31 follows:

	Net Sales						Property, Plant and Equipment, Net
	2011		2010		2009		2011		2010
United States	$	612,643	$	574,625	$	504,597	$	57,424	$	61,943
Other Americas	159,756		130,851		105,210		3,758		2,919
Total Americas	772,399		705,476		609,807		61,182		64,862
Germany	200,062		170,468		166,480		26,266		27,274
France	136,589		124,330		123,035		4,743		4,620
United Kingdom	66,321		59,347		44,983		6,155		6,437
Switzerland	79,376		57,047		62,179		245,376		205,806
Other Europe	379,784		317,044		302,024		7,015		6,685
Total Europe	862,132		728,236		698,701		289,555		250,822
China	379,791		291,115		228,433		54,125		43,697
Rest of World	295,006		243,351		191,912		5,145		5,091
Total Asia/Rest of World	674,797		534,466		420,345		59,270		48,788
Total	$	2,309,328	$	1,968,178	$	1,728,853	$	410,007	$	364,472