SEGMENT REPORTING

As disclosed in Note 16 to the Company's consolidated financial statements for the year ended December 31, 2016, 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			2017
June 30, 2017	Customers		Segments			Sales			Profit			Goodwill
U.S. Operations	$	238,831	$	23,092		$	261,923		$	45,147		$	357,782
Swiss Operations	32,287		131,347			163,634			37,950			22,544
Western European Operations	151,161		43,883			195,044			23,172			87,388
Chinese Operations	108,092		57,036			165,128			54,128			653
Other (a)	123,285		2,129			125,414			15,212			15,390
Eliminations and Corporate (b)	—		(257,487		)	(257,487		)	(27,063		)	—
Total	$	653,656	$	—		$	653,656		$	148,546		$	483,757



	Net Sales to		Net Sales to
For the six months ended	External		Other			Total Net			Segment
June 30, 2017	Customers		Segments			Sales			Profit
U.S. Operations	$	454,184	$	45,505		$	499,689		$	83,969
Swiss Operations	62,034		258,899			320,933			73,968
Western European Operations	298,484		86,825			385,309			46,398
Chinese Operations	198,873		109,969			308,842			98,787
Other (a)	234,648		3,726			238,374			28,330
Eliminations and Corporate (b)	—		(504,924		)	(504,924		)	(55,570		)
Total	$	1,248,223	$	—		$	1,248,223		$	275,882


(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			2016
June 30, 2016	Customers		Segments			Sales			Profit			Goodwill
U.S. Operations	$	216,968	$	22,102		$	239,070		$	41,112		$	319,715
Swiss Operations	30,720		126,983			157,703			34,997			22,105
Western European Operations	154,264		38,945			193,209			24,303			87,452
Chinese Operations	92,886		58,655			151,541			45,934			672
Other (a)	113,448		1,700			115,148			13,249			14,334
Eliminations and Corporate (b)	—		(248,385		)	(248,385		)	(30,518		)	—
Total	$	608,286	$	—		$	608,286		$	129,077		$	444,278



	Net Sales to		Net Sales to
For the six months ended	External		Other			Total Net			Segment
June 30, 2016	Customers		Segments			Sales			Profit
U.S. Operations	$	404,903	$	41,733		$	446,636		$	70,267
Swiss Operations	57,685		247,294			304,979			70,819
Western European Operations	291,915		77,492			369,407			44,493
Chinese Operations	177,833		104,581			282,414			82,560
Other (a)	215,624		3,054			218,678			24,343
Eliminations and Corporate (b)	—		(474,154		)	(474,154		)	(61,392		)
Total	$	1,147,960	$	—		$	1,147,960		$	231,090


(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
	2017			2016		2017			2016
Earnings before taxes	$	126,847		$	103,172	$	240,695		$	189,585
Amortization	10,249			8,655		20,294			17,079
Interest expense	8,171			6,872		15,912			13,452
Restructuring charges	4,023			2,205		5,455			3,085
Other charges (income), net	(744		)	8,173		(6,474		)	7,889
Segment profit	$	148,546		$	129,077	$	275,882		$	231,090

During the three months ended June 30, 2017, restructuring charges of $4.0 million were recognized, of which $2.2 million, $0.5 million, $0.7 million, and $0.6 million related to the Company’s U.S., Swiss, Western European and Other Operations, respectively. Restructuring charges of $2.2 million were recognized during the three months ended June 30, 2016, of which $0.8 million, $0.2 million, and $1.2 million related to the Company’s U.S., Swiss, and Western European Operations, respectively. Restructuring charges of $5.5 million were recognized during the six months ended June 30, 2017, of which $3.0 million, $0.9 million, $0.7 million, $0.1 million, and $0.8 million related to the Company’s U.S., Swiss, Western European, Chinese, and Other Operations, respectively. Restructuring charges of $3.1 million were recognized during the six months ended June 30, 2016, of which $1.1 million, $0.6 million, $1.2 million, $0.1 million and $0.1 million related to the Company’s U.S., Swiss, Western European, Chinese and Other Operations, respectively.