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Segment Reporting
 9 Months Ended
Sep. 30, 2013
Segment Reporting [Abstract]  
SEGMENT REPORTING
SEGMENT REPORTING
As disclosed in Note 18 to the Company's consolidated financial statements for the year ended December 31, 2012, 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 September 30,
For the three months ended
External
 
Other
 
Total Net
 
Segment
 
2013
September 30, 2013
Customers
 
Segments
 
Sales
 
Profit
 
Goodwill
U.S. Operations
$
181,644

 
$
21,356

 
$
203,000

 
$
32,878

 
$
307,933

Swiss Operations
31,539

 
107,856

 
139,395

 
37,233

 
23,745

Western European Operations
166,283

 
25,760

 
192,043

 
26,156

 
106,192

Chinese Operations
104,549

 
42,145

 
146,694

 
32,965

 
741

Other (a)
107,671

 
1,302

 
108,973

 
11,366

 
13,488

Eliminations and Corporate (b)
—

 
(198,419
)
 
(198,419
)
 
(24,517
)
 
—

Total
$
591,686

 
$
—

 
$
591,686

 
$
116,081

 
$
452,099

(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
 
 
 
 
 
 
For the nine months ended
External
 
Other
 
Total Net
 
Segment
 
 
September 30, 2013
Customers
 
Segments
 
Sales
 
Profit
 
 
U.S. Operations
$
527,425

 
$
56,629

 
$
584,054

 
$
91,002

 
 
Swiss Operations
93,402

 
308,498

 
401,900

 
109,807

 
 
Western European Operations
469,247

 
80,353

 
549,600

 
67,948

 
 
Chinese Operations
293,047

 
110,290

 
403,337

 
86,987

 
 
Other (a)
311,598

 
4,231

 
315,829

 
30,577

 
 
Eliminations and Corporate (b)
—

 
(560,001
)
 
(560,001
)
 
(78,401
)
 
 
Total
$
1,694,719

 
$
—

 
$
1,694,719

 
$
307,920

 
 

 
Net Sales to
 
Net Sales to
 
 
 
 
 
As of September 30,
For the three months ended
External
 
Other
 
Total Net
 
Segment
 
2012
September 30, 2012
Customers
 
Segments
 
Sales
 
Profit
 
Goodwill
U.S. Operations
$
176,874

 
$
19,465

 
$
196,339

 
$
36,627

 
$
307,857

Swiss Operations
28,199

 
99,316

 
127,515

 
34,355

 
23,107

Western European Operations
149,785

 
25,828

 
175,613

 
22,045

 
104,337

Chinese Operations
113,323

 
35,552

 
148,875

 
33,067

 
713

Other (a)
110,372

 
1,500

 
111,872

 
12,501

 
15,002

Eliminations and Corporate (b)
—

 
(181,661
)
 
(181,661
)
 
(29,355
)
 
—

Total
$
578,553

 
$
—

 
$
578,553

 
$
109,240

 
$
451,016


 
Net Sales to
 
Net Sales to
 
 
 
 
 
 
For the nine months ended
External
 
Other
 
Total Net
 
Segment
 
 
September 30, 2012
Customers
 
Segments
 
Sales
 
Profit
 
 
U.S. Operations
$
511,354

 
$
54,203

 
$
565,557

 
$
95,987

 
 
Swiss Operations
88,224

 
290,585

 
378,809

 
89,809

 
 
Western European Operations
459,074

 
74,513

 
533,587

 
62,288

 
 
Chinese Operations
313,096

 
91,487

 
404,583

 
89,316

 
 
Other (a)
312,488

 
4,494

 
316,982

 
31,826

 
 
Eliminations and Corporate (b)
—

 
(515,282
)
 
(515,282
)
 
(78,135
)
 
 
Total
$
1,684,236

 
$
—

 
$
1,684,236

 
$
291,091

 
 

(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 nine month periods ended September 30 follows:

 
Three Months Ended
 
Nine Months Ended
 
2013
 
2012
 
2013
 
2012
Earnings before taxes
$
97,796

 
$
95,605

 
$
257,805

 
$
246,639

Amortization
6,675

 
5,215

 
17,604

 
15,771

Interest expense
5,557

 
5,568

 
16,500

 
17,097

Restructuring charges
5,532

 
3,118

 
13,730

 
11,261

Other charges (income), net
521

 
(266
)
 
2,281

 
323

Segment profit
$
116,081

 
$
109,240

 
$
307,920

 
$
291,091



During the three months ended September 30, 2013, restructuring charges of $5.5 million were recognized, of which $0.8 million, $1.9 million, $2.1 million, and $0.7 million related to the Company’s U.S., Swiss, Western European, and Chinese Operations, respectively. Restructuring charges of $3.1 million were recognized during the three months ended September 30, 2012, of which $0.2 million, $0.3 million, $1.8 million, $0.7 million and $0.1 million related to the Company’s U.S., Swiss, Western European Chinese and Other Operations, respectively. Restructuring charges of $13.7 million were recognized during the nine months ended September 30, 2013, of which $1.3 million, $7.2 million, $3.4 million, $1.5 million, and $0.3 million related to the Company’s U.S., Swiss, Western European, Chinese, and Other Operations, respectively. Restructuring charges of $11.3 million were recognized during the nine months ended September 30, 2012, of which $1.0 million, $4.2 million, $5.2 million, $0.8 million and $0.1 million related to the Company’s U.S., Swiss, Western European, Chinese and Other Operations, respectively.