SEGMENT REPORTING

As disclosed in Note 17 to the Company's consolidated financial statements for the year ending December 31, 2017, 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, 2018	Customers		Segments			Sales			Profit			Goodwill
U.S. Operations	$	229,745	$	23,666		$	253,411		$	34,245		$	409,471
Swiss Operations	32,466		143,582			176,048			45,975			22,866
Western European Operations	165,372		41,012			206,384			18,282			95,938
Chinese Operations	113,930		60,407			174,337			59,553			722
Other (a)	119,308		1,640			120,948			13,881			15,787
Eliminations and Corporate (b)	—		(270,307		)	(270,307		)	(32,390		)	—
Total	$	660,821	$	—		$	660,821		$	139,546		$	544,784



	Net Sales to		Net Sales to
For the three months ended	External		Other			Total Net			Segment
March 31, 2017	Customers		Segments			Sales			Profit (c)			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			24,718			83,777
Chinese Operations	90,781		52,932			143,713			44,659			643
Other (a)	111,363		1,597			112,960			13,108			14,935
Eliminations and Corporate (b)	—		(247,436		)	(247,436		)	(30,792		)	—
Total	$	594,567	$	—		$	594,567		$	126,533		$	478,652


(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)	2017 segment profit has been adjusted to be consistent with 2018 for the adoption of ASU 2017-7 (as disclosed in Note 2).

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



	Three Months Ended
	March 31, 2018			March 31, 2017
Earnings before taxes	$	117,439		$	113,848
Amortization	11,735			10,045
Interest expense	8,359			7,741
Restructuring charges	4,413			1,432
Other charges (income), net	(2,400		)	(6,533		)
Segment profit	$	139,546		$	126,533

During the three months ended March 31, 2018, restructuring charges of $4.4 million were recognized, of which $3.6 million, $0.4 million, and $0.4 million related to the Company’s U.S., Swiss, and Western European operations, respectively. Restructuring charges of $1.4 million were recognized during the three months ended March 31, 2017, 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.