Segment Reporting

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

As disclosed in Note 16 to the Company's consolidated financial statements for the year ended December 31, 2014, 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 September 30,
For the three months ended	External		Other			Total Net			Segment			2015
September 30, 2015	Customers		Segments			Sales			Profit			Goodwill
U.S. Operations	$	217,713	$	21,221		$	238,934		$	40,529		$	317,525
Swiss Operations	32,867		107,196			140,063			39,772			22,130
Western European Operations	150,523		32,495			183,018			26,789			94,659
Chinese Operations	96,716		49,499			146,215			41,665			709
Other (a)	106,335		2,014			108,349			13,400			13,319
Eliminations and Corporate (b)	—		(212,425		)	(212,425		)	(27,883		)	—
Total	$	604,154	$	—		$	604,154		$	134,272		$	448,342

	Net Sales to		Net Sales to
For the nine months ended	External		Other			Total Net			Segment
September 30, 2015	Customers		Segments			Sales			Profit
U.S. Operations	$	599,283	$	62,353		$	661,636		$	101,719
Swiss Operations	97,325		308,998			406,323			109,996
Western European Operations	442,742		87,395			530,137			70,476
Chinese Operations	274,178		138,253			412,431			111,080
Other (a)	308,384		4,959			313,343			32,372
Eliminations and Corporate (b)	—		(601,958		)	(601,958		)	(75,755		)
Total	$	1,721,912	$	—		$	1,721,912		$	349,888

(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									As of September 30,
For the three months ended	External		Other			Total Net			Segment			2014
September 30, 2014	Customers		Segments			Sales			Profit (c)			Goodwill
U.S. Operations	$	196,241	$	20,058		$	216,299		$	30,695		$	308,112
Swiss Operations	35,375		112,544			147,919			35,924			22,748
Western European Operations	174,089		32,076			206,165			29,612			103,844
Chinese Operations	107,907		41,416			149,323			43,472			741
Other (a)	115,488		1,864			117,352			13,148			14,094
Eliminations and Corporate (b)	—		(207,958		)	(207,958		)	(26,151		)	—
Total	$	629,100	$	—		$	629,100		$	126,700		$	449,539

	Net Sales to		Net Sales to
For the nine months ended	External		Other			Total Net			Segment
September 30, 2014	Customers		Segments			Sales			Profit (c)
U.S. Operations	$	553,590	$	61,969		$	615,559		$	84,715
Swiss Operations	102,522		328,932			431,454			100,069
Western European Operations	504,172		88,950			593,122			74,173
Chinese Operations	299,450		114,358			413,808			113,756
Other (a)	328,821		4,946			333,767			33,236
Eliminations and Corporate (b)	—		(599,155		)	(599,155		)	(75,348		)
Total	$	1,788,555	$	—		$	1,788,555		$	330,601

(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.

(c) 2014 Segment profit between the U.S., Swiss, and Chinese Operations has been reclassified to conform to the current period.

A reconciliation of earnings before taxes to segment profit for the three and nine month periods ended September 30 follows:

	Three Months Ended					Nine Months Ended
	2015			2014		2015			2014
Earnings before taxes	$	116,923		$	111,836	$	301,933		$	285,618
Amortization	7,767			7,198		22,929			21,575
Interest expense	7,029			5,991		20,696			17,613
Restructuring charges	2,561			1,050		5,188			4,447
Other charges (income), net	(8		)	625		(858		)	1,348
Segment profit	$	134,272		$	126,700	$	349,888		$	330,601

During the three months ended September 30, 2015, restructuring charges of $2.6 million were recognized, of which $0.6 million, $1.9 million, and $0.1 million related to the Company’s Swiss, Western European, and Chinese Operations, respectively. Restructuring charges of $1.1 million were recognized during the three months ended September 30, 2014, of which $0.1 million, $0.4 million, $0.1 million, and $0.5 million related to the Company’s U.S., Western European, Chinese Operations, and Other Operations respectively. Restructuring charges of $5.2 million were recognized during the nine months ended September 30, 2015, of which $0.1 million, $1.7 million, $2.4 million, $0.4 million, and $0.6 million related to the Company’s U.S., Swiss, Western European, Chinese, and Other Operations, respectively. Restructuring charges of $4.4 million were recognized during the nine months ended September 30, 2014, of which $1.7 million, $0.6 million, $1.0 million, $0.4 million and $0.7 million related to the Company’s U.S., Swiss, Western European, Chinese and Other Operations, respectively.