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Segment Reporting
 12 Months Ended
Dec. 31, 2014
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. Operating segments 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 operating segments:
For the Year Ended December 31, 2014
 
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
 
$
755,922

 
$
90,463

 
$
846,385

 
$
134,045

 
$
6,068

 
$
1,294,037

 
$
(6,627
)
 
$
308,861

Swiss Operations
 
137,231

 
461,171

 
598,402

 
170,764

 
6,621

 
1,018,941

 
(6,567
)
 
21,873

Western European Operations
 
713,318

 
124,349

 
837,667

 
120,659

 
4,422

 
1,061,455

 
(5,581
)
 
99,341

Chinese Operations
 
415,474

 
155,690

 
571,164

 
132,521

 
6,746

 
816,801

 
(19,793
)
 
740

Other(a)
 
464,038

 
7,527

 
471,565

 
52,461

 
2,820

 
261,036

 
(3,315
)
 
13,270

Eliminations and Corporate(b)
 
—

 
(839,200
)
 
(839,200
)
 
(103,579
)
 
6,940

 
(2,443,160
)
 
(47,505
)
 
—

Total
 
$
2,485,983

 
$
—

 
$
2,485,983

 
$
506,871

 
$
33,617

 
$
2,009,110

 
$
(89,388
)
 
$
444,085


For the Year Ended December 31, 2013
 
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
 
$
718,671

 
$
83,182

 
$
801,853

 
$
137,837

 
$
6,223

 
$
1,242,501

 
$
(6,297
)
 
$
307,933

Swiss Operations
 
132,240

 
435,904

 
568,144

 
147,990

 
6,576

 
1,090,353

 
(6,801
)
 
24,288

Western European Operations
 
674,278

 
112,049

 
786,327

 
111,951

 
4,708

 
1,059,525

 
(6,096
)
 
108,662

Chinese Operations
 
407,131

 
149,084

 
556,215

 
122,214

 
6,527

 
731,650

 
(6,200
)
 
746

Other(a)
 
446,652

 
6,308

 
452,960

 
49,673

 
2,694

 
257,141

 
(7,172
)
 
14,213

Eliminations and Corporate(b)
 
—

 
(786,527
)
 
(786,527
)
 
(96,773
)
 
8,037

 
(2,228,351
)
 
(49,783
)
 
—

Total
 
$
2,378,972

 
$
—

 
$
2,378,972

 
$
472,892

 
$
34,765

 
$
2,152,819

 
$
(82,349
)
 
$
455,842


For the Year Ended December 31, 2012
 
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
 
$
697,956

 
$
80,164

 
$
778,120

 
$
138,894

 
$
5,799

 
$
1,128,902

 
$
(10,988
)
 
$
307,933

Swiss Operations
 
124,362

 
406,485

 
530,847

 
127,011

 
7,194

 
922,620

 
(5,529
)
 
23,684

Western European Operations
 
644,361

 
101,952

 
746,313

 
95,523

 
4,947

 
975,174

 
(5,504
)
 
105,522

Chinese Operations
 
432,255

 
123,669

 
555,924

 
125,217

 
5,567

 
631,075

 
(9,872
)
 
717

Other(a)
 
442,594

 
5,133

 
447,727

 
48,857

 
2,653

 
237,232

 
(5,542
)
 
14,495

Eliminations and Corporate(b)
 
—

 
(717,403
)
 
(717,403
)
 
(91,003
)
 
7,261

 
(1,872,715
)
 
(58,153
)
 
—

Total
 
$
2,341,528

 
$
—

 
$
2,341,528

 
$
444,499

 
$
33,421

 
$
2,022,288

 
$
(95,588
)
 
$
452,351

_______________________________________
(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 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:
 
2014
 
2013
 
2012
Earnings before taxes
$
445,004

 
$
402,709

 
$
382,601

Amortization
29,185

 
24,539

 
21,357

Interest expense
24,537

 
22,711

 
22,764

Restructuring charges
5,915

 
19,830

 
16,687

Other charges (income), net
2,230

 
3,103

 
1,090

Segment profit
$
506,871

 
$
472,892

 
$
444,499


During 2014, restructuring charges of $5.9 million were recognized, of which $2.0 million, $1.3 million, $0.7 million, $1.2 million, and $0.7 million relate to the Company’s U.S., Swiss, Western European, Chinese, and Other Operations, respectively. Restructuring charges of $19.8 million were recognized in 2013, of which $1.7 million, $8.0 million, $7.7 million, $2.0 million, and $0.4 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 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:
 
2014
 
2013
 
2012
Laboratory
$
1,161,207

 
$
1,100,632

 
$
1,071,299

Industrial
1,107,606

 
1,065,605

 
1,063,653

Retail
217,170

 
212,735

 
206,576

Total net sales
$
2,485,983

 
$
2,378,972

 
$
2,341,528


In certain circumstances, our operating segments sell directly into other geographies. A breakdown of net sales to external customers by geographic customer destination and property, plant, and equipment, net for the years ended December 31 follows:
 
Net Sales
 
Property, Plant, and
Equipment, Net
 
2014
 
2013
 
2012
 
2014
 
2013
United States
$
708,293

 
$
665,365

 
$
643,902

 
$
128,125

 
$
133,323

Other Americas
166,150

 
167,647

 
161,853

 
4,110

 
4,831

Total Americas
874,443

 
833,012

 
805,755

 
132,235

 
138,154

Germany
204,747

 
195,521

 
183,859

 
32,984

 
29,008

France
127,363

 
122,658

 
123,007

 
5,802

 
6,737

United Kingdom
77,271

 
65,922

 
62,389

 
6,112

 
6,001

Switzerland
71,347

 
74,574

 
65,430

 
235,593

 
243,697

Other Europe
398,645

 
377,353

 
355,266

 
6,983

 
7,936

Total Europe
879,373

 
836,028

 
789,951

 
287,474

 
293,379

China
404,293

 
396,620

 
422,894

 
83,412

 
74,546

Rest of World
327,874

 
313,312

 
322,928

 
8,341

 
8,359

Total Asia/Rest of World
732,167

 
709,932

 
745,822

 
91,753

 
82,905

Total
$
2,485,983

 
$
2,378,972

 
$
2,341,528

 
$
511,462

 
$
514,438