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12. Commitments & Contingent Liabilities | 12 Months Ended
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Dec. 31, 2012
Commitments & Contingent Liabilities [Abstract] |
Commitments and Contingencies Disclosure [Text Block] | 12. COMMITMENTS AND CONTINGENT LIABILITIES Rents and Leases Net rental expense under operating leases was $41.4 million, $42.4 million and $38.3 million in 2012, 2011 and 2010, respectively. Leases are principally for facilities and automobiles. Annual future minimum lease payments at December 31, 2012 under operating leases are as follows: 2013 - $35.3 million; 2014 - $30.8 million; 2015 - $23.2 million; 2016 - $18.9 million; and 2017 and beyond - $58.0 million. Deferred Profit Sharing Retirement Plan We have a profit sharing plan covering substantially all U.S. employees. Contributions are made at the discretion of the Board of Directors. Bio-Rad has no liability other than for the current year’s contribution. Contribution expense was $12.1 million, $12.1 million and $12.2 million in 2012, 2011 and 2010, respectively. Other Post-Employment Benefits In several foreign locations we are statutorily required to provide a lump sum severance or termination indemnity to our employees. Under these plans, the vested benefit obligation at December 31, 2012 and 2011 was $39.5 million and $30.7 million, respectively, and has been included in Other current liabilities and Other long-term liabilities in the Consolidated Balance Sheets. These plans are not required to be funded, and as such, there is no trust or other device used to accumulate assets to settle these obligations. Purchase Obligations As of December 31, 2012, we had purchase obligations of $65.5 million, which include agreements to purchase goods or services that are enforceable and legally binding to Bio-Rad and that specify all significant terms and exclude agreements that are cancelable without penalty. The annual future fixed and determinable portion of our purchase obligations as of December 31, 2012 are as follows: 2013 - $56.0 million and 2014 to 2015 - $9.5 million. Letters of Credit In the ordinary course of business, we are at times required to post letters of credit. The letters of credit are issued by our banks to guarantee our obligations to various parties including insurance companies. We were contingently liable for $11.6 million of standby letters of credit with banks as of December 31, 2012. Contingent Consideration During the fourth quarter of 2011, we recognized a contingent consideration liability upon our acquisition of QuantaLife, related to potential future payments due upon the achievement of certain sales and development milestones. The contingent consideration was initially recognized at its estimated fair value of $24.1 million, based on a probability-weighted income approach. The contingent consideration was recognized at its estimated fair value of $8.0 million and $24.1 million as of December 31, 2012 and 2011, respectively. At October 4, 2011, the contingent consideration could have originally reached a maximum of $48 million upon the achievement of all sales milestones and a development milestone. As of December 31, 2012, the first three short-term sales milestones were not met and therefore the contingent consideration can now only reach a maximum of $37 million upon the achievement of all the remaining sales and development milestones. The development milestone was met as of December 31, 2012, resulting in a payment of $6 million in January 2013. During the third quarter of 2012, we recognized a contingent consideration liability upon our acquisition of a new cell sorting system from Propel Labs, Inc. The contingent consideration was recognized at its estimated fair value of $44.6 million as of December 31, 2012, based on a probability-weighted income approach related to the achievement of certain development and sales milestones valued at $19.9 million and $24.7 million, respectively. The development milestone could potentially reach a maximum of $20 million, which we consider the probability to be more than likely of achieving the milestones. This form of payment guarantees that the seller transitions the manufacturing of the product to Bio-Rad. The sales milestone could potentially range from $0 to a maximum of 60.0%, 56.7% and 54.4% of annual cell sorting system purchase orders, and payment to occur upon the anniversary of the completion of a certain number of cell sorting systems for three consecutive years, respectively. These maximum payout ratios begin at annual cell sorting system purchase orders in excess of $20 million, $30 million and $45 million for the three consecutive years, respectively. Concentrations of Labor Subject to Collective Bargaining Agreements At December 31, 2012, approximately seven percent of Bio-Rad's approximately 2,975 U.S. employees are covered by a collective bargaining agreement, which will expire on November 7, 2016. Many of Bio-Rad's non-U.S. full-time employees, especially in France, are covered by collective bargaining agreements. We consider our employee relations in general to be good. Royalty Contingency We license certain technologies from a particular third party. In connection with an audit of our royalty obligations under those licenses, the third party has proposed that we owe an additional $30.2 million in unpaid royalties. While we disagree as to the amount of royalties that are owed, we are in discussions with the third party to resolve the claims related to unpaid royalties, as well as to enter into other license agreements with the third party relating to our respective technologies. We have recorded an accrued liability for this matter that reflects an amount within the range of possible outcomes that is our best estimate of the amount we expect to pay to settle the claims related to past royalties as part of an overall settlement. The ultimate resolution of these matters, however, may result in a loss in excess of the amount we have accrued as of December 31, 2012.

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- Definition The entire disclosure for commitments and contingencies. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 460 -SubTopic 10 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=6398077&loc=d3e12565-110249 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 450 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14435-108349 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Interpretation (FIN) -Number 14 -Paragraph 3 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 440 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6394976&loc=d3e25287-109308 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.25) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 5 -Paragraph 9, 10, 11, 12 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
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