Segment Reporting

6 Months Ended

Jun. 30, 2014

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

As disclosed in Note 18 to the Company's consolidated financial statements for the year ended 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									As of June 30,
For the three months ended	External		Other			Total Net			Segment			2014
June 30, 2014	Customers		Segments			Sales			Profit			Goodwill
U.S. Operations	$	193,353	$	21,136		$	214,489		$	34,723		$	307,975
Swiss Operations	33,742		108,163			141,905			36,559			24,229
Western European Operations	169,917		27,435			197,352			23,685			109,921
Chinese Operations	99,922		37,398			137,320			31,497			738
Other (a)	111,900		1,947			113,847			10,929			14,896
Eliminations and Corporate (b)	—		(196,079		)	(196,079		)	(24,445		)	—
Total	$	608,834	$	—		$	608,834		$	112,948		$	457,759

	Net Sales to		Net Sales to
For the six months ended	External		Other			Total Net			Segment
June 30, 2014	Customers		Segments			Sales			Profit
U.S. Operations	$	357,347	$	41,912		$	399,259		$	58,418
Swiss Operations	65,798		216,388			282,186			72,725
Western European Operations	331,434		56,874			388,308			44,561
Chinese Operations	191,543		72,942			264,485			57,296
Other (a)	213,333		3,082			216,415			20,088
Eliminations and Corporate (b)	—		(391,198		)	(391,198		)	(49,187		)
Total	$	1,159,455	$	—		$	1,159,455		$	203,901

	Net Sales to		Net Sales to									As of June 30,
For the three months ended	External		Other			Total Net			Segment			2013
June 30, 2013	Customers		Segments			Sales			Profit			Goodwill
U.S. Operations	$	186,829	$	16,694		$	203,523		$	33,339		$	307,933
Swiss Operations	31,166		103,519			134,685			36,059			22,966
Western European Operations	156,515		26,481			182,996			23,357			102,114
Chinese Operations	97,771		37,743			135,514			29,374			733
Other (a)	106,399		1,509			107,908			9,431			13,420
Eliminations and Corporate (b)	—		(185,946		)	(185,946		)	(25,154		)	—
Total	$	578,680	$	—		$	578,680		$	106,406		$	447,166

(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 and certain corporate expenses and intercompany investments, which are not included in the Company’s operating segments.

	Net Sales to		Net Sales to
For the six months ended	External		Other			Total Net			Segment
June 30, 2013	Customers		Segments			Sales			Profit
U.S. Operations	$	345,013	$	35,273		$	380,286		$	57,996
Swiss Operations	61,863		200,642			262,505			70,260
Western European Operations	302,517		54,593			357,110			41,655
Chinese Operations	188,498		68,145			256,643			54,022
Other (a)	205,142		2,929			208,071			18,918
Eliminations and Corporate (b)	—		(361,582		)	(361,582		)	(51,012		)
Total	$	1,103,033	$	—		$	1,103,033		$	191,839

(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 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 and six month periods ended June 30 follows:

	Three Months Ended				Six Months Ended
	2014		2013		2014		2013
Earnings before taxes	$	97,398	$	90,873	$	173,782	$	160,009
Amortization	7,283		5,807		14,377		10,929
Interest expense	5,956		5,543		11,622		10,943
Restructuring charges	1,905		3,196		3,397		8,198
Other charges (income), net	406		987		723		1,760
Segment profit	$	112,948	$	106,406	$	203,901	$	191,839

During the three months ended June 30, 2014, restructuring charges of $1.9 million were recognized, of which $1.0 million, $0.3 million, $0.5 million, and $0.1 million related to the Company’s U.S., Swiss, Western European, and Chinese Operations, respectively. Restructuring charges of $3.2 million were recognized during the three months ended June 30, 2013, of which $0.2 million, $2.4 million, $0.6 million, and $0.1 million related to the Company’s U.S., Swiss, Western European, and Chinese Operations, respectively. Restructuring charges of $3.4 million were recognized during the six months ended June 30, 2014, of which $1.6 million, $0.6 million, $0.6 million, $0.3 million, and $0.3 million related to the Company’s U.S., Swiss, Western European, Chinese, and Other Operations, respectively. Restructuring charges of $8.2 million were recognized during the six months ended June 30, 2013, of which $0.6 million, $5.2 million, $1.3 million, $0.8 million and $0.2 million related to the Company’s U.S., Swiss, Western European, Chinese and Other Operations, respectively.