Segment Reporting

12 Months Ended

Dec. 31, 2012

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, 2012	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	$	699,361	$	78,759		$	778,120		$	138,894		$	5,799	$	1,128,902		$	(10,988	)	$	307,933
Swiss Operations	124,362		406,485			530,847			133,691			7,194		921,253			(5,529		)	23,684
Western European Operations	644,361		101,952			746,313			95,523			4,947		985,011			(5,504		)	105,522
Chinese Operations	432,255		123,669			555,924			125,217			5,567		630,671			(9,872		)	717
Other(a)	441,189		6,538			447,727			48,857			2,653		238,095			(5,542		)	14,495
Eliminations and Corporate(b)	—		(717,403		)	(717,403		)	(97,683		)	7,261		(1,786,532		)	(58,153		)	—
Total	$	2,341,528	$	—		$	2,341,528		$	444,499		$	33,421	$	2,117,400		$	(95,588	)	$	452,351

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		794,319			(8,178		)	22,986
Western European Operations	692,348		107,585			799,933			99,969			5,065		971,825			(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		754,419			(11,870		)	20,579
Western European Operations	600,933		91,322			692,255			85,120			4,649		922,043			(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

_______________________________________

(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:

	2012		2011		2010
Earnings before taxes	$	382,601	$	349,177	$	307,513
Amortization	21,357		17,808		14,842
Interest expense	22,764		23,226		20,057
Restructuring charges	16,687		5,912		4,866
Other charges (income), net	1,090		2,380		4,164
Segment profit	$	444,499	$	398,503	$	351,442

During 2012 restructuring charges of $16.7 million were recognized, of which $1.7 million, $5.7 million, $7.8 million, $1.1 million, and $0.4 million relate to the Company’s U.S., Swiss, Western European, Chinese, and Other operations, respectively. The cumulative amount of restructuring charges recognized under the program totaled $65.2 million as of December 31, 2012, of which $11.9 million, $8.4 million, $34.0 million, $2.7 million, $7.0 million and $1.2 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 1% 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 product category for the years ended December 31 follows:

	2012		2011		2010
Laboratory	$	1,071,299	$	1,047,319	$	914,419
Industrial	1,063,653		1,038,871		841,057
Retail	206,576		223,138		212,702
Total net sales	$	2,341,528	$	2,309,328	$	1,968,178

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
	2012		2011		2010		2012		2011
United States	$	643,902	$	612,643	$	574,625	$	66,720	$	57,424
Other Americas	161,853		159,756		130,851		4,332		3,758
Total Americas	805,755		772,399		705,476		71,052		61,182
Germany	183,859		200,062		170,468		25,761		26,266
France	123,007		136,589		124,330		6,781		4,743
United Kingdom	62,389		66,321		59,347		6,103		6,155
Switzerland	65,430		79,376		57,047		275,901		245,376
Other Europe	355,266		379,784		317,044		7,410		7,015
Total Europe	789,951		862,132		728,236		321,956		289,555
China	422,894		379,791		291,115		69,784		54,125
Rest of World	322,928		295,006		243,351		6,629		5,145
Total Asia/Rest of World	745,822		674,797		534,466		76,413		59,270
Total	$	2,341,528	$	2,309,328	$	1,968,178	$	469,421	$	410,007