Segment Reporting

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

As disclosed in Note 18 to the Company's consolidated financial statements for the year ending December 31, 2013, the Company has determined there are five reportable segments:  U.S. Operations, Swiss Operations, Western European Operations, Chinese Operations and Other.

The Company evaluates segment performance based on Segment Profit (gross profit less research and development and selling, general and administrative expenses, before amortization, interest expense, restructuring charges, other charges (income), net and taxes).

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

	Net Sales to		Net Sales to
For the three months ended	External		Other			Total Net			Segment
March 31, 2014	Customers		Segments			Sales			Profit			Goodwill
U.S. Operations	$	163,994	$	20,775		$	184,769		$	23,695		$	307,933
Swiss Operations	32,056		108,225			140,281			36,166			24,420
Western European Operations	161,517		29,438			190,955			20,876			109,056
Chinese Operations	91,621		35,544			127,165			25,799			738
Other (a)	101,433		1,135			102,568			9,159			14,795
Eliminations and Corporate (b)	—		(195,117		)	(195,117		)	(24,742		)	—
Total	$	550,621	$	—		$	550,621		$	90,953		$	456,942

	Net Sales to		Net Sales to
For the three months ended	External		Other			Total Net			Segment
March 31, 2013	Customers		Segments			Sales			Profit			Goodwill
U.S. Operations	$	158,389	$	18,377		$	176,766		$	24,657		$	307,933
Swiss Operations	30,697		97,123			127,820			34,201			22,694
Western European Operations	146,168		28,112			174,280			18,298			100,483
Chinese Operations	90,727		30,402			121,129			24,648			722
Other (a)	98,374		1,420			99,794			9,487			13,877
Eliminations and Corporate (b)	—		(175,434		)	(175,434		)	(25,858		)	—
Total	$	524,355	$	—		$	524,355		$	85,433		$	445,709

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

(b) Eliminations and Corporate includes the elimination of inter-segment transactions and 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 for the three months ended March 31 follows:

	Three Months Ended
	March 31, 2014		March 31, 2013
Earnings before taxes	$	76,384	$	69,136
Amortization	7,094		5,122
Interest expense	5,666		5,400
Restructuring charges	1,492		5,002
Other charges (income), net	317		773
Segment profit	$	90,953	$	85,433

During the three months ended March 31, 2014, restructuring charges of $1.5 million were recognized, of which $0.6 million, $0.3 million, $0.1 million, $0.2 million and $0.3 million related to the Company’s U.S., Swiss, Western European, China, and Other operations, respectively. Restructuring charges of $5.0 million were recognized during the three months ended March 31, 2013, of which $0.4 million, $2.9 million, $0.8 million, $0.7 million, and $0.2 million related to the Company’s U.S., Swiss, Western European, China and Other operations, respectively.