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 September 30,
For the three months ended	External		Other			Total Net			Segment			2017
September 30, 2017	Customers		Segments			Sales			Profit			Goodwill
U.S. Operations	$	239,221	$	24,187		$	263,408		$	43,004		$	409,172
Swiss Operations	33,923		136,960			170,883			39,213			22,252
Western European Operations	171,722		40,287			212,009			30,885			90,832
Chinese Operations	125,067		68,625			193,692			69,086			673
Other (a)	128,866		1,754			130,620			16,776			15,489
Eliminations and Corporate (b)	—		(271,813		)	(271,813		)	(36,079		)	—
Total	$	698,799	$	—		$	698,799		$	162,885		$	538,418



	Net Sales to		Net Sales to
For the nine months ended	External		Other			Total Net			Segment
September 30, 2017	Customers		Segments			Sales			Profit
U.S. Operations	$	693,405	$	69,692		$	763,097		$	126,973
Swiss Operations	95,957		395,859			491,816			113,181
Western European Operations	470,206		127,112			597,318			77,283
Chinese Operations	323,940		178,593			502,533			167,873
Other (a)	363,514		5,481			368,995			45,106
Eliminations and Corporate (b)	—		(776,737		)	(776,737		)	(91,649		)
Total	$	1,947,022	$	—		$	1,947,022		$	438,767


(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 September 30,
For the three months ended	External		Other			Total Net			Segment			2016
September 30, 2016	Customers		Segments			Sales			Profit			Goodwill
U.S. Operations	$	235,715	$	20,151		$	255,866		$	43,779		$	356,089
Swiss Operations	32,390		127,569			159,959			36,854			22,280
Western European Operations	159,025		43,816			202,841			30,218			87,403
Chinese Operations	99,349		62,368			161,717			51,669			669
Other (a)	124,119		1,770			125,889			16,721			15,703
Eliminations and Corporate (b)	—		(255,674		)	(255,674		)	(27,566		)	—
Total	$	650,598	$	—		$	650,598		$	151,675		$	482,144



	Net Sales to		Net Sales to
For the nine months ended	External		Other			Total Net			Segment
September 30, 2016	Customers		Segments			Sales			Profit
U.S. Operations	$	640,618	$	61,884		$	702,502		$	114,046
Swiss Operations	90,075		374,863			464,938			107,673
Western European Operations	450,940		121,308			572,248			74,711
Chinese Operations	277,182		166,948			444,130			134,229
Other (a)	339,743		4,824			344,567			41,064
Eliminations and Corporate (b)	—		(729,827		)	(729,827		)	(88,958		)
Total	$	1,798,558	$	—		$	1,798,558		$	382,765


(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
	2017		2016		2017			2016
Earnings before taxes	$	139,627	$	133,324	$	380,322		$	322,909
Amortization	10,716		9,087		31,010			26,166
Interest expense	8,248		7,167		24,160			20,619
Restructuring charges	3,385		1,494		8,840			4,579
Other charges (income), net	909		603		(5,565		)	8,492
Segment profit	$	162,885	$	151,675	$	438,767		$	382,765

During the three months ended September 30, 2017, restructuring charges of $3.4 million were recognized, of which $1.7 million, $0.2 million, $1.3 million, and $0.2 million related to the Company’s U.S., Swiss, Western European and Chinese Operations, respectively. Restructuring charges of $1.5 million were recognized during the three months ended September 30, 2016, of which $0.6 million, $0.3 million, $0.5 million and $0.1 million related to the Company’s U.S., Swiss, Western European and Other Operations, respectively. Restructuring charges of $8.8 million were recognized during the nine months ended September 30, 2017, of which $4.7 million, $1.1 million, $2.0 million, $0.3 million, and $0.8 million related to the Company’s U.S., Swiss, Western European, Chinese, and Other Operations, respectively. Restructuring charges of $4.6 million were recognized during the nine months ended September 30, 2016, of which $1.7 million, $0.9 million, $1.7 million, $0.1 million and $0.2 million related to the Company’s U.S., Swiss, Western European, Chinese and Other Operations, respectively.