15. Quarterly Financial Data

12 Months Ended

Dec. 31, 2012

15. QUARTERLY FINANCIAL DATA (UNAUDITED)

Summarized quarterly financial data for 2012 and 2011 are as follows (in millions, except per share data):



	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
2012
Net sales	$	486.3	$	510.4	$	498.7	$	573.8
Gross profit	278.6		287.9		273.5		314.1
Net income attributable to Bio-Rad	31.0		48.3		42.4		42.0
Basic earnings per share	$	1.10	$	1.71	$	1.50	$	1.48
Diluted earnings per share	$	1.09	$	1.69	$	1.48	$	1.46

2011
Net sales	$	485.1	$	521.7	$	516.5	$	550.2
Gross profit	277.6		293.1		296.2		311.0
Net income attributable to Bio-Rad	33.0		40.0		45.9		59.2
Basic earnings per share	$	1.18	$	1.43	$	1.63	$	2.11
Diluted earnings per share	$	1.16	$	1.41	$	1.61	$	2.08

During the first quarter of 2012, we identified an error in the consolidated financial statements for the years 2007 through 2011, related to a foreign supplemental tax associated with social benefits. We incorrectly interpreted and applied the local statutes to our circumstances. We accrued $6.1 million for these foreign supplemental taxes, including penalties and interest, during the first quarter of 2012, all of which has been paid. The foreign supplemental tax, and the related penalties and interest, were not deductible for income tax purposes, and as such this error did not have an impact on Bio-Rad's provision for income taxes.

We evaluated the materiality of the error from a qualitative and quantitative perspective. Based on such evaluation, we concluded that while the accumulation of the error was significant to the three-month period ended March 31, 2012, the correction was not material to any individual prior period or for the year ended December 31, 2012, nor did it have an effect on the trend of financial results, taking into account the requirements of the Securities and Exchange Commission (SEC) Staff Accounting Bulletin No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements (SAB 108).

- Definition

The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished.

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