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Segment Reporting
 12 Months Ended
Dec. 31, 2016
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, 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

 
123,507

 
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

 
64,060

 
3,461

 
277,476

 
(4,540
)
 
14,218

Eliminations and Corporate(b)
 
—

 
(1,019,539
)
 
(1,019,539
)
 
(117,696
)
 
6,062

 
(2,893,996
)
 
(36,757
)
 
—

Total
 
$
2,508,257

 
$
—

 
$
2,508,257

 
$
582,997

 
$
32,743

 
$
2,166,777

 
$
(123,957
)
 
$
476,378


For the Year Ended December 31, 2015
 
Net Sales to
External
Customers
 
Net Sales to
Other
Segments
 
Total Net
Sales (c)
 
Segment
Profit (c)
 
Depreciation
 
Total Assets
 
Purchase of
Property, Plant
and Equipment
 
Goodwill
 
 
 
 
 
 
 
 
U.S. Operations
 
$
826,354

 
$
87,488

 
$
913,842

 
$
147,491

 
$
6,153

 
$
1,487,422

 
$
(7,113
)
 
$
317,856

Swiss Operations
 
133,684

 
498,642

 
632,326

 
160,763

 
6,488

 
1,134,648

 
(6,650
)
 
21,841

Western European Operations
 
620,128

 
165,532

 
785,660

 
107,424

 
4,076

 
1,010,639

 
(5,940
)
 
92,389

Chinese Operations
 
376,291

 
214,887

 
591,178

 
165,532

 
7,086

 
506,390

 
(14,770
)
 
692

Other(a)
 
438,990

 
8,087

 
447,077

 
50,821

 
2,883

 
260,276

 
(4,306
)
 
13,506

Eliminations and Corporate(b)
 
—

 
(974,636
)
 
(974,636
)
 
(99,924
)
 
6,401

 
(2,440,040
)
 
(43,727
)
 
—

Total
 
$
2,395,447

 
$
—

 
$
2,395,447

 
$
532,107

 
$
33,087

 
$
1,959,335

 
$
(82,506
)
 
$
446,284


For the Year Ended December 31, 2014
 
Net Sales to
External
Customers
 
Net Sales to
Other
Segments
 
Total Net
Sales (c)
 
Segment
Profit (c)
 
Depreciation
 
Total Assets
 
Purchase of
Property, Plant
and Equipment
 
Goodwill
 
 
 
 
 
 
 
 
U.S. Operations
 
$
757,243

 
$
90,463

 
$
847,706

 
$
123,278

 
$
6,068

 
$
1,368,835

 
$
(6,627
)
 
$
308,861

Swiss Operations
 
137,756

 
549,785

 
687,541

 
149,987

 
6,621

 
1,016,416

 
(6,567
)
 
21,873

Western European Operations
 
708,755

 
194,297

 
903,052

 
119,603

 
4,422

 
1,052,435

 
(5,581
)
 
99,341

Chinese Operations
 
415,474

 
164,083

 
579,557

 
163,832

 
6,746

 
813,052

 
(19,793
)
 
740

Other(a)
 
466,755

 
7,527

 
474,282

 
52,869

 
2,820

 
252,776

 
(3,315
)
 
13,270

Eliminations and Corporate(b)
 
—

 
(1,006,155
)
 
(1,006,155
)
 
(102,698
)
 
6,940

 
(2,529,982
)
 
(47,505
)
 
—

Total
 
$
2,485,983

 
$
—

 
$
2,485,983

 
$
506,871

 
$
33,617

 
$
1,973,532

 
$
(89,388
)
 
$
444,085

(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.
(c)
2015 and 2014 net sales and segment profit have been reclassified to conform to the current period.
A reconciliation of earnings before taxes to segment profit follows:
 
2016
 
2015
 
2014
Earnings before taxes
$
504,193

 
$
463,424

 
$
445,004

Amortization
36,052

 
30,951

 
29,185

Interest expense
28,026

 
27,451

 
24,537

Restructuring charges
6,235

 
11,148

 
5,915

Other charges (income), net
8,491

 
(867
)
 
2,230

Segment profit
$
582,997

 
$
532,107

 
$
506,871


During 2016, restructuring charges of $6.2 million were recognized, of which $2.0 million, $1.5 million, $2.4 million, $0.2 million, and $0.2 million relate to the Company’s U.S., Swiss, Western European, Chinese, and Other Operations, respectively. Restructuring charges of $11.1 million were recognized in 2015, of which $0.6 million, $2.4 million, $2.6 million, $4.7 million, and $0.8 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:
 
2016
 
2015
 
2014
Laboratory
$
1,225,000

 
$
1,154,905

 
$
1,161,207

Industrial
1,067,858

 
1,034,310

 
1,107,606

Retail
215,399

 
206,232

 
217,170

Total net sales
$
2,508,257

 
$
2,395,447

 
$
2,485,983


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
 
2016
 
2015
 
2014
 
2016
 
2015
United States
$
815,153

 
$
768,815

 
$
708,293

 
$
168,494

 
$
132,255

Other Americas
153,607

 
157,962

 
166,150

 
3,833

 
4,120

Total Americas
968,760

 
926,777

 
874,443

 
172,327

 
136,375

Germany
182,644

 
176,491

 
204,747

 
28,393

 
29,100

France
118,681

 
110,477

 
127,363

 
5,009

 
5,174

United Kingdom
61,513

 
71,679

 
77,271

 
12,631

 
15,854

Switzerland
62,115

 
64,622

 
71,347

 
246,312

 
233,763

Other Europe
374,008

 
349,178

 
398,645

 
6,511

 
6,158

Total Europe
798,961

 
772,447

 
879,373

 
298,856

 
290,049

China
374,996

 
362,950

 
404,293

 
83,713

 
82,528

Rest of World
365,540

 
333,273

 
327,874

 
8,811

 
8,277

Total Asia/Rest of World
740,536

 
696,223

 
732,167

 
92,524

 
90,805

Total
$
2,508,257

 
$
2,395,447

 
$
2,485,983

 
$
563,707

 
$
517,229