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, 2017	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
For the Year Ended December 31, 2017	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	$	944,825	$	99,117		$	1,043,942		$	177,705		$	7,659	$	1,937,688		$	(38,969	)	$	409,520
Swiss Operations	133,925		563,083			697,008			174,447			5,551		1,374,150			(19,589		)	22,171
Western European Operations	673,776		170,820			844,596			117,324			4,052		1,805,294			(7,094		)	91,927
Chinese Operations	452,617		232,882			685,499			231,860			7,168		1,068,811			(13,246		)	690
Other^(a)	519,910		7,934			527,844			72,744			3,474		310,667			(4,131		)	15,530
Eliminations and Corporate^(b)	—		(1,073,836		)	(1,073,836		)	(117,496		)	5,554		(3,946,805		)	(44,397		)	—
Total	$	2,725,053	$	—		$	2,725,053		$	656,584		$	33,458	$	2,549,805		$	(127,426	)	$	539,838



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
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			Segment Profit			Depreciation		Total Assets			Purchase of Property, Plant, and Equipment			Goodwill
For the Year Ended December 31, 2015	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	$	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


(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.

A reconciliation of earnings before taxes to segment profit follows:



	2017			2016		2015
Earnings before taxes	$	574,222		$	504,193	$	463,424
Amortization	42,671			36,052		30,951
Interest expense	32,785			28,026		27,451
Restructuring charges	12,772			6,235		11,148
Other charges (income), net	(5,866		)	8,491		(867		)
Segment profit	$	656,584		$	582,997	$	532,107

During 2017, restructuring charges of $12.8 million were recognized, of which $6.2 million, $1.8 million, $3.0 million, $0.8 million, and $1.0 million relate to the Company’s U.S., Swiss, Western European, Chinese, and Other Operations, respectively. Restructuring charges of $6.2 million were recognized in 2016, 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.

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:



	2017		2016		2015
Laboratory	$	1,358,493	$	1,225,000	$	1,154,905
Industrial	1,158,335		1,067,858		1,034,310
Retail	208,225		215,399		206,232
Total net sales	$	2,725,053	$	2,508,257	$	2,395,447

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
	2017		2016		2015		2017		2016
United States	$	888,241	$	815,153	$	768,815	$	220,401	$	168,494
Other Americas	162,672		153,607		157,962		3,406		3,833
Total Americas	1,050,913		968,760		926,777		223,807		172,327
Germany	192,126		182,644		176,491		49,376		28,393
France	130,427		118,681		110,477		6,386		5,009
United Kingdom	64,361		61,513		71,679		19,617		12,631
Switzerland	63,090		62,115		64,622		259,007		246,312
Other Europe	399,923		374,008		349,178		8,050		6,511
Total Europe	849,927		798,961		772,447		342,436		298,856
China	439,373		374,996		362,950		92,269		83,713
Rest of World	384,840		365,540		333,273		9,759		8,811
Total Asia/Rest of World	824,213		740,536		696,223		102,028		92,524
Total	$	2,725,053	$	2,508,257	$	2,395,447	$	668,271	$	563,707