Segment Reporting

12 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Segment Reporting Disclosure

SEGMENT REPORTING

The Company has five reportable segments: U.S. Operations, Swiss Operations, Western European Operations, Chinese Operations, and Other. U.S. Operations represent certain of the Company’s marketing and producing organizations located in the United States. Western European Operations include the Company’s marketing and producing organizations in Western Europe, excluding operations located in Switzerland. Swiss Operations include marketing and producing organizations located in Switzerland as well as extensive R&D operations that are responsible for the development, production, and marketing of precision instruments, including weighing, analytical, and measurement technologies for use in a variety of laboratory and industrial applications. Chinese Operations represent the Company’s marketing and producing organizations located in China. The Company’s market organizations are geographically focused and are responsible for all aspects of the Company’s sales and service. Operations that exist outside these reportable segments are included in Other.

The accounting policies of the operating segments are the same as those described in the summary of significant accounting policies. The Company evaluates performance based on segment profit for segment reporting (gross profit less research and development and selling, general, and administrative expenses, before amortization, interest expense, restructuring charges, other charges (income), net, and taxes). Inter-segment sales and transfers are priced to reflect consideration of market conditions and the regulations of the countries in which the transferring entities are located.

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

For the Year Ended December 31, 2018	Net Sales to External Customers		Net Sales to Other Segments			Total Net Sales			Segment Profit			Depreciation		Total Assets			Purchase of Property, Plant, and Equipment			Goodwill
U.S. Operations	$	1,007,798	$	104,458		$	1,112,256		$	161,615		$	10,425	$	2,113,268		$	(27,896	)	$	410,021
Swiss Operations	134,064		628,529			762,593			202,027			5,835		1,471,625			(1,123		)	21,994
Western European Operations	718,788		176,995			895,783			122,574			4,173		983,809			(16,879		)	87,242
Chinese Operations	525,109		242,452			767,561			270,668			7,869		1,237,248			(13,248		)	644
Other(a)	549,827		6,543			556,370			78,317			3,774		319,070			(8,342		)	14,879
Eliminations and Corporate(b)	—		(1,158,977		)	(1,158,977		)	(104,696		)	5,091		(3,506,173		)	(75,238		)	—
Total	$	2,935,586	$	—		$	2,935,586		$	730,505		$	37,167	$	2,618,847		$	(142,726	)	$	534,780

For the Year Ended December 31, 2017	Net Sales to External Customers		Net Sales to Other Segments			Total Net Sales			Segment Profit			Depreciation		Total Assets			Purchase of Property, Plant, and Equipment			Goodwill
U.S. Operations	$	944,825	$	99,117		$	1,043,942		$	177,705		$	7,659	$	1,937,688		$	(38,969	)	$	409,520
Swiss Operations	133,925		563,083			697,008			174,447			5,551		1,374,150			(19,589		)	22,171
Western European Operations	673,776		170,820			844,596			123,841			4,052		1,805,294			(7,094		)	91,927
Chinese Operations	452,617		232,882			685,499			231,860			7,168		1,068,811			(13,246		)	690
Other(a)	519,910		7,934			527,844			72,681			3,474		310,667			(4,131		)	15,530
Eliminations and Corporate(b)	—		(1,073,836		)	(1,073,836		)	(127,952		)	5,554		(3,946,805		)	(44,397		)	—
Total	$	2,725,053	$	—		$	2,725,053		$	652,582		$	33,458	$	2,549,805		$	(127,426	)	$	539,838

For the Year Ended December 31, 2016	Net Sales to External Customers		Net Sales to Other Segments			Total Net Sales			Segment Profit			Depreciation		Total Assets			Purchase of Property, Plant, and Equipment			Goodwill
U.S. Operations	$	867,962	$	90,580		$	958,542		$	161,539		$	6,094	$	1,747,338		$	(52,255	)	$	357,785
Swiss Operations	130,674		524,983			655,657			163,663			6,199		1,212,637			(7,260		)	21,239
Western European Operations	640,558		176,501			817,059			129,001			4,048		1,120,751			(6,857		)	82,500
Chinese Operations	386,541		219,766			606,307			187,924			6,879		702,571			(16,288		)	636
Other(a)	482,522		7,709			490,231			64,146			3,461		277,476			(4,540		)	14,218
Eliminations and Corporate(b)	—		(1,019,539		)	(1,019,539		)	(133,095		)	6,062		(2,893,996		)	(36,757		)	—
Total	$	2,508,257	$	—		$	2,508,257		$	573,178		$	32,743	$	2,166,777		$	(123,957	)	$	476,378

(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 as well as 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 follows:

	2018			2017			2016
Earnings before taxes	$	651,858		$	574,222		$	504,193
Amortization	47,524			42,671			36,052
Interest expense	34,511			32,785			28,026
Restructuring charges	18,420			12,772			6,235
Other charges (income), net	(21,808		)	(9,868		)	(1,328		)
Segment profit	$	730,505		$	652,582		$	573,178

During 2018, restructuring charges of $18.4 million were recognized, of which $11.0 million, $4.0 million, $2.8 million, $0.3 million, and $0.3 million relate to the Company’s U.S., Swiss, Western European, Chinese, and Other Operations, respectively. Restructuring charges of $12.8 million were recognized in 2017, of which $6.2 million, $1.8 million, $3.0 million, $0.8 million, and $1.0 million relate to the Company's U.S., Swiss, Western European, Chinese, and Other Operations, respectively.

The Company sells precision instruments, including weighing instruments and certain analytical and measurement technologies, and related services to a variety of customers and industries. None of these end-customers account for more than 1% of net sales. Service revenues are primarily derived from repair and other services including regulatory compliance qualification, calibration, certification, and preventative maintenance. A breakdown of the Company's sales by product category for the years ended December 31 follows:

	2018		2017		2016
Laboratory	$	1,504,600	$	1,358,493	$	1,225,000
Industrial	1,211,362		1,158,335		1,067,858
Retail	219,624		208,225		215,399
Total net sales	$	2,935,586	$	2,725,053	$	2,508,257

In certain circumstances, our reporting units sell directly into other geographies. A breakdown of net sales to external customers by geographic customer destination and property, plant, and equipment by geographic destination for the years ended December 31 follows:

	Net Sales						Property, Plant, and Equipment, Net
	2018		2017		2016		2018		2017
United States	$	933,419	$	888,241	$	815,153	$	234,395	$	220,401
Other Americas	172,537		162,672		153,607		2,946		3,406
Total Americas	1,105,956		1,050,913		968,760		237,341		223,807
Germany	205,296		192,126		182,644		48,030		49,376
France	141,513		130,427		118,681		7,810		6,386
United Kingdom	70,378		64,361		61,513		17,347		19,617
Switzerland	65,377		63,090		62,115		293,388		259,007
Other Europe	426,209		399,923		374,008		12,791		8,050
Total Europe	908,773		849,927		798,961		379,366		342,436
China	506,360		439,373		374,996		87,643		92,269
Rest of World	414,497		384,840		365,540		13,176		9,759
Total Asia/Rest of World	920,857		824,213		740,536		100,819		102,028
Total	$	2,935,586	$	2,725,053	$	2,508,257	$	717,526	$	668,271