Segment Reporting

3 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

As disclosed in Note 19 to the Company's consolidated financial statements for the year ended December 31, 2019, 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, 2020	Customers		Segments			Sales			Profit			Goodwill
U.S. Operations	$	241,409	$	26,391		$	267,800		$	44,938		$	413,898
Swiss Operations	31,897		152,848			184,745			53,910			22,751
Western European Operations	153,325		41,715			195,040			24,107			85,058
Chinese Operations	100,599		48,749			149,348			45,550			619
Other (a)	121,932		896			122,828			11,026			14,569
Eliminations and Corporate (b)	—		(270,599		)	(270,599		)	(38,253		)	—
Total	$	649,162	$	—		$	649,162		$	141,278		$	536,895

	Net Sales to		Net Sales to
For the three months ended	External		Other			Total Net			Segment
March 31, 2019	Customers		Segments			Sales			Profit			Goodwill
U.S. Operations	$	234,650	$	26,145		$	260,795		$	37,985		$	410,021
Swiss Operations	33,577		153,731			187,308			53,522			21,757
Western European Operations	165,906		44,045			209,951			25,725			88,208
Chinese Operations	121,723		56,857			178,580			59,484			663
Other (a)	123,596		1,261			124,857			13,187			14,868
Eliminations and Corporate (b)	—		(282,039		)	(282,039		)	(42,062		)	—
Total	$	679,452	$	—		$	679,452		$	147,841		$	535,517

(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.

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

	Three Months Ended
	March 31, 2020			March 31, 2019
Earnings before taxes	$	118,499		$	125,676
Amortization	13,998			12,222
Interest expense	10,219			9,094
Restructuring charges	1,905			1,523
Other charges (income), net	(3,343		)	(674		)
Segment profit	$	141,278		$	147,841

During the three months ended March 31, 2020, restructuring charges of $1.9 million were recognized, of which $0.3 million, $0.7 million, $0.8 million, and $0.1 million related to the Company’s U.S., Swiss, Western European and Other operations, respectively. Restructuring charges of $1.5 million were recognized during the three months ended March 31, 2019, of which $0.5 million, and $1.0 million related to the Company's U.S. and Western European operations, respectively.