Segment Reporting

12 Months Ended

Dec. 31, 2013

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, 2013	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	$	720,568	$	81,283		$	801,851		$	138,366		$	6,223	$	1,242,501		$	(6,297	)	$	307,933
Swiss Operations	127,031		440,177			567,208			151,743			6,576		1,090,353			(6,801		)	24,288
Western European Operations	674,620		111,707			786,327			111,828			4,708		1,059,525			(6,096		)	108,662
Chinese Operations	407,131		149,084			556,215			122,214			6,527		731,650			(6,200		)	746
Other(a)	449,622		6,308			455,930			49,228			2,694		257,141			(7,172		)	14,213
Eliminations and Corporate(b)	—		(788,559		)	(788,559		)	(100,487		)	8,037		(2,228,351		)	(49,783		)	—
Total	$	2,378,972	$	—		$	2,378,972		$	472,892		$	34,765	$	2,152,819		$	(82,349	)	$	455,842

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		922,620			(5,529		)	23,684
Western European Operations	644,361		101,952			746,313			95,523			4,947		975,174			(5,504		)	105,522
Chinese Operations	432,255		123,669			555,924			125,217			5,567		631,075			(9,872		)	717
Other(a)	441,189		6,538			447,727			48,857			2,653		237,232			(5,542		)	14,495
Eliminations and Corporate(b)	—		(717,403		)	(717,403		)	(97,683		)	7,261		(1,872,715		)	(58,153		)	—
Total	$	2,341,528	$	—		$	2,341,528		$	444,499		$	33,421	$	2,022,288		$	(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	$	1,037,238		$	(6,926	)	$	307,485
Swiss Operations	143,520		411,788			555,308			113,997			7,581		795,828			(8,178		)	22,986
Western European Operations	692,348		107,585			799,933			99,969			5,065		963,563			(4,962		)	101,899
Chinese Operations	388,592		126,550			515,142			120,857			4,920		366,442			(15,601		)	710
Other(a)	419,623		6,348			425,971			50,045			2,161		328,867			(4,088		)	14,663
Eliminations and Corporate(b)	—		(732,284		)	(732,284		)	(107,763		)	6,205		(1,377,028		)	(58,745		)	—
Total	$	2,309,328	$	—		$	2,309,328		$	398,503		$	31,689	$	2,114,910		$	(98,500	)	$	447,743

_______________________________________

(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:

	2013		2012		2011
Earnings before taxes	$	402,709	$	382,601	$	349,177
Amortization	24,539		21,357		17,808
Interest expense	22,711		22,764		23,226
Restructuring charges	19,830		16,687		5,912
Other charges (income), net	3,103		1,090		2,380
Segment profit	$	472,892	$	444,499	$	398,503

During 2013 restructuring charges of $19.8 million were recognized, of which $1.7 million, $8.0 million, $7.7 million, $2.0 million, and $0.4 million relate to the Company’s U.S., Swiss, Western European, Chinese, and Other Operations, respectively. Restructuring charges of $16.7 million were recognized in 2012, 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 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:

	2013		2012		2011
Laboratory	$	1,100,632	$	1,071,299	$	1,047,319
Industrial	1,065,605		1,063,653		1,038,871
Retail	212,735		206,576		223,138
Total net sales	$	2,378,972	$	2,341,528	$	2,309,328

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
	2013		2012		2011		2013		2012
United States	$	664,665	$	643,902	$	612,643	$	133,323	$	66,978
Other Americas	168,347		161,853		159,756		4,831		4,074
Total Americas	833,012		805,755		772,399		138,154		71,052
Germany	195,521		183,859		200,062		29,008		26,404
France	122,658		123,007		136,589		6,737		6,781
United Kingdom	65,922		62,389		66,321		6,001		6,103
Switzerland	74,574		65,430		79,376		243,697		275,944
Other Europe	377,353		355,266		379,784		7,936		6,767
Total Europe	836,028		789,951		862,132		293,379		321,999
China	396,620		422,894		379,791		74,546		69,784
Rest of World	313,312		322,928		295,006		8,359		6,586
Total Asia/Rest of World	709,932		745,822		674,797		82,905		76,370
Total	$	2,378,972	$	2,341,528	$	2,309,328	$	514,438	$	469,421