Segment Reporting

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

As disclosed in Note 17 to the Company's consolidated financial statements for the year ending December 31, 2016, 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 reportable segments:

	Net Sales to		Net Sales to
For the three months ended	External		Other			Total Net			Segment
March 31, 2017	Customers		Segments			Sales			Profit			Goodwill
U.S. Operations	$	215,353	$	22,412		$	237,765		$	38,822		$	357,526
Swiss Operations	29,747		127,553			157,300			36,018			21,771
Western European Operations	147,323		42,942			190,265			23,226			83,777
Chinese Operations	90,781		52,932			143,713			44,659			643
Other (a)	111,363		1,597			112,960			13,118			14,935
Eliminations and Corporate (b)	—		(247,436		)	(247,436		)	(28,507		)	—
Total	$	594,567	$	—		$	594,567		$	127,336		$	478,652

	Net Sales to		Net Sales to
For the three months ended	External		Other			Total Net			Segment
March 31, 2016	Customers		Segments (c)			Sales (c)			Profit (c)			Goodwill
U.S. Operations	$	187,934	$	20,315		$	208,249		$	29,265		$	319,715
Swiss Operations	26,989		116,927			143,916			35,072			22,241
Western European Operations	137,628		34,474			172,102			19,699			91,482
Chinese Operations	84,947		46,817			131,764			38,036			692
Other (a)	102,176		1,354			103,530			11,094			14,053
Eliminations and Corporate (b)	—		(219,887		)	(219,887		)	(31,153		)	—
Total	$	539,674	$	—		$	539,674		$	102,013		$	448,183

(a) Other includes reporting units in Southeast Asia, Latin America, Eastern Europe 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) 2016 net sales and segment profit have been reclassified to conform to the current period.

A reconciliation of earnings before taxes to segment profit for the three months ended March 31 follows:

	Three Months Ended
	March 31, 2017			March 31, 2016
Earnings before taxes	$	113,848		$	86,413
Amortization	10,045			8,424
Interest expense	7,741			6,580
Restructuring charges	1,432			880
Other charges (income), net	(5,730		)	(284		)
Segment profit	$	127,336		$	102,013

During the three months ended March 31, 2017, restructuring charges of $1.4 million were recognized, of which $0.8 million, $0.4 million, $0.1 million, and $0.1 million related to the Company’s U.S., Swiss, Chinese and Other operations, respectively. Restructuring charges of $0.9 million were recognized during the three months ended March 31, 2016, of which $0.3 million, $0.4 million, $0.1 million and $0.1 million related to the Company's U.S., Swiss, Chinese and Other operations, respectively.