SEGMENT REPORTING

As disclosed in Note 17 to the Company's consolidated financial statements for the year ended December 31, 2017, 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			2018
September 30, 2018	Customers		Segments			Sales			Profit			Goodwill
U.S. Operations	$	255,379	$	25,050		$	280,429		$	41,890		$	410,022
Swiss Operations	31,463		148,418			179,881			44,542			22,404
Western European Operations	173,170		41,923			215,093			30,046			89,915
Chinese Operations	140,098		64,079			204,177			75,762			644
Other (a)	134,736		1,334			136,070			19,179			14,877
Eliminations and Corporate (b)	—		(280,804		)	(280,804		)	(29,454		)	—
Total	$	734,846	$	—		$	734,846		$	181,965		$	537,862



	Net Sales to		Net Sales to
For the nine months ended	External		Other			Total Net			Segment
September 30, 2018	Customers		Segments			Sales			Profit
U.S. Operations	$	736,598	$	72,203		$	808,801		$	118,141
Swiss Operations	96,082		440,959			537,041			138,254
Western European Operations	512,314		128,076			640,390			75,661
Chinese Operations	387,301		183,074			570,375			201,199
Other (a)	385,368		4,436			389,804			50,702
Eliminations and Corporate (b)	—		(828,748		)	(828,748		)	(93,160		)
Total	$	2,117,663	$	—		$	2,117,663		$	490,797


(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			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			39,212			22,252
Western European Operations	171,722		40,287			212,009			32,519			90,832
Chinese Operations	125,067		68,625			193,692			69,086			673
Other (a)	128,866		1,754			130,620			16,754			15,489
Eliminations and Corporate (b)	—		(271,813		)	(271,813		)	(38,836		)	—
Total	$	698,799	$	—		$	698,799		$	161,739		$	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			81,946
Chinese Operations	323,940		178,593			502,533			167,873
Other (a)	363,514		5,481			368,995			45,043
Eliminations and Corporate (b)	—		(776,737		)	(776,737		)	(99,338		)
Total	$	1,947,022	$	—		$	1,947,022		$	435,678


(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
	2018			2017			2018			2017
Earnings before taxes	$	160,363		$	139,627		$	421,404		$	380,322
Amortization	11,856			10,716			35,561			31,010
Interest expense	9,003			8,248			25,671			24,160
Restructuring charges	2,222			3,385			13,956			8,840
Other charges (income), net	(1,479		)	(237		)	(5,795		)	(8,654		)
Segment profit	$	181,965		$	161,739		$	490,797		$	435,678

During the three months ended September 30, 2018, restructuring charges of $2.2 million were recognized, of which $0.6 million, $0.7 million, $0.7 million, $0.1 million and $0.1 million related to the Company’s U.S., Swiss, Western European, Chinese and Other Operations, respectively. Restructuring charges of $3.4 million were recognized during the three months ended September 30, 2017, 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 $14.0 million were recognized during the nine months ended September 30, 2018, of which $10.6 million, $1.5 million, $1.6 million, $0.1 million and $0.2 million related to the Company’s U.S., Swiss, Western European, Chinese 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.