Segment Reporting

6 Months Ended

Jun. 30, 2019

As disclosed in Note 17 to the Company's consolidated financial statements for the year ended December 31, 2018, 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			2019
June 30, 2019	Customers		Segments			Sales			Profit			Goodwill
U.S. Operations	$	267,889	$	26,571		$	294,460		$	53,986		$	410,021
Swiss Operations	31,358		151,931			183,289			48,613			22,157
Western European Operations	163,681		39,212			202,893			22,229			86,749
Chinese Operations	136,459		52,568			189,027			65,489			643
Other (a)	131,979		1,334			133,313			14,300			14,987
Eliminations and Corporate (b)	—		(271,616		)	(271,616		)	(26,876		)	—
Total	$	731,366	$	—		$	731,366		$	177,741		$	534,557



	Net Sales to		Net Sales to
For the six months ended	External		Other			Total Net			Segment
June 30, 2019	Customers		Segments			Sales			Profit
U.S. Operations	$	502,540	$	52,716		$	555,256		$	91,971
Swiss Operations	64,935		305,662			370,597			102,135
Western European Operations	329,587		83,257			412,844			47,954
Chinese Operations	258,181		109,425			367,606			124,973
Other (a)	255,575		2,595			258,170			27,487
Eliminations and Corporate (b)	—		(553,655		)	(553,655		)	(68,938		)
Total	$	1,410,818	$	—		$	1,410,818		$	325,582


(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 June 30,
For the three months ended	External		Other			Total Net			Segment			2018
June 30, 2018	Customers		Segments			Sales			Profit			Goodwill
U.S. Operations	$	251,474	$	23,487		$	274,961		$	42,006		$	409,470
Swiss Operations	32,154		148,959			181,113			47,737			21,787
Western European Operations	173,772		45,141			218,913			27,333			89,412
Chinese Operations	133,272		58,588			191,860			65,884			678
Other (a)	131,324		1,463			132,787			17,642			15,060
Eliminations and Corporate (b)	—		(277,638		)	(277,638		)	(31,316		)	—
Total	$	721,996	$	—		$	721,996		$	169,286		$	536,407



	Net Sales to		Net Sales to
For the six months ended	External		Other			Total Net			Segment
June 30, 2018	Customers		Segments			Sales			Profit
U.S. Operations	$	481,219	$	47,153		$	528,372		$	76,251
Swiss Operations	64,619		292,541			357,160			93,712
Western European Operations	339,144		86,153			425,297			45,615
Chinese Operations	247,202		118,995			366,197			125,437
Other (a)	250,633		3,103			253,736			31,523
Eliminations and Corporate (b)	—		(547,945		)	(547,945		)	(63,706		)
Total	$	1,382,817	$	—		$	1,382,817		$	308,832


(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
	2019			2018			2019			2018
Earnings before taxes	$	155,216		$	143,602		$	280,892		$	261,041
Amortization	12,326			11,970			24,548			23,705
Interest expense	8,882			8,309			17,976			16,668
Restructuring charges	2,891			7,321			4,414			11,734
Other charges (income), net	(1,574		)	(1,916		)	(2,248		)	(4,316		)
Segment profit	$	177,741		$	169,286		$	325,582		$	308,832

During the three months ended June 30, 2019, restructuring charges of $2.9 million were recognized, of which $1.1 million, $0.3 million, $1.1 million, and $0.4 million related to the Company’s U.S., Swiss, Western European and Chinese Operations, respectively. Restructuring charges of $7.3 million were recognized during the three months ended June 30, 2018, of which $6.4 million, $0.3 million, $0.5 million and $0.1 million, related to the Company’s U.S., Swiss, Western European and Other Operations, respectively. Restructuring charges of $4.4 million were recognized during the six months ended June 30, 2019, of which $1.6 million, $0.3 million, $2.1 million, and $0.4 million related to the Company’s U.S., Swiss, Western European, and Chinese Operations, respectively. Restructuring charges

of $11.7 million were recognized during the six months ended June 30, 2018, of which $10.0 million, $0.7 million, $0.9 million and $0.1 million related to the Company’s U.S., Swiss, Western European and Other Operations, respectively.