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1. Organization, Consolidation and Presentation of Financial Statements
 6 Months Ended
Jun. 30, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization, Consolidation and Presentation of Financial Statements Disclosure
1.BASIS OF PRESENTATION AND USE OF ESTIMATES

Basis of Presentation

In this report, “Bio-Rad,” “we,” “us,” "the Company" and “our” refer to Bio-Rad Laboratories, Inc. and its subsidiaries.  The accompanying unaudited condensed consolidated financial statements of Bio-Rad have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and reflect all adjustments which are, in the opinion of management, necessary to fairly state the results of the interim periods presented.  All such adjustments are of a normal recurring nature.  Results for the interim period are not necessarily indicative of the results for the entire year.  The condensed consolidated balance sheet at December 31, 2012 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. The condensed consolidated financial statements should be read in conjunction with the notes to the consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2012.

We evaluate subsequent events and the evidence they provide about conditions existing at the date of the balance sheet as well as conditions that arose after the balance sheet date but through the date the financial statements are issued.  The effects of conditions that existed at the balance sheet date are recognized in the financial statements. Events and conditions arising after the balance sheet date but before the financial statements are issued are evaluated to determine if disclosure is required to keep the financial statements from being misleading.  To the extent such events and conditions exist, disclosures are made regarding the nature of events and the estimated financial effects for those events and conditions.

Use of Estimates

The preparation of the condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingencies at the date of the financial statements as well as the reported amounts of revenues and expenses during the reporting periods.   Bio-Rad bases its estimates on historical experience and on various other market-specific and other relevant assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ materially from those estimates.

Correction of Immaterial Errors Associated with the Presentation and Disclosure of the Statements of Comprehensive Income

During the first quarter of 2013, we identified errors in the Consolidated Statements of Comprehensive Income for 2012, 2011 and 2010, and in the unaudited interim Condensed Consolidated Statements of Comprehensive Income for all three quarters of 2012, which affected two line items within this financial statement. Specifically, we incorrectly calculated the 1) net unrealized holding gains on available-for-sale (AFS) investments, net of tax, and 2) reclassification adjustments for net holding gains/losses on AFS investments included in net income including noncontrolling interests, net of tax.

Following are the amounts in thousands that should have been reported for the Statements of Comprehensive Income for the two affected line items, including the associated income taxes (note: income taxes were originally reported in millions but have been presented below in thousands):

 
Three Months Ended
Six Months Ended
Year Ended December 31,
 
June 30, 2012
June 30, 2012
2012
2011
2010
 
 
 
 
 
 
Net unrealized holding gains on AFS investments, net of income tax; understated by $340, $8,508, $10,090 and $770 for the three and six months ended June 30, 2012, and for the years ended 2012 and 2010, respectively, and overstated by $208 for the year ended 2011.
$3,774
$31,196
$65,448
$12,663
$15,495
Income taxes on net unrealized holding gains on AFS investments; understated by $198, $4,955, $5,874 and $448 for the three and six months ended June 30, 2012, and for the years ended 2012 and 2010, respectively, and overstated by $121 for the year ended 2011.
$2,198
$18,165
$38,108
$7,373
$9,022
Reclassification adjustments for net holding (gains) losses on AFS investments included in Net income including noncontrolling interests, net of income tax; understated by $340, $8,508, $10,090 and $770 for the three and six months ended June 30, 2012, and for the years ended 2012 and 2010, respectively, and overstated by $208 for the year ended 2011.
$(170)
$(4,254)
$(5,045)
$104
$(385)
Income taxes on reclassification adjustments for net holding gains/losses on AFS investments included in Net income including noncontrolling interests; understated by $198, $4,955, $5,874 and $448 for the three and six months ended June 30, 2012, and for the years ended 2012 and 2010, respectively, and overstated by $121 for the year ended 2011.
$(99)
$(2,477)
$(2,937)
$61
$(224)


These errors had no effect on Other comprehensive income, net of tax, for any period presented. They did not affect any other caption or total in our other unaudited condensed or annual consolidated financial statements.

Management evaluated the materiality of these errors from a qualitative and quantitative perspective, taking into account the requirements of the Securities and Exchange Commission (SEC) Staff Accounting Bulletin No. 99, Materiality. Management has concluded that these errors are not material and, therefore, will correct these errors prospectively when the Consolidated Statements of Comprehensive Income are included in future filings.

Recent Accounting Standards Updates

In February 2013, the Financial Accounting Standards Board (FASB) issued guidance requiring that companies present either in a single note or parenthetically on the face of the financial statements, the effect of significant amounts reclassified from each component of accumulated other comprehensive income based on its source and the income statement line items affected by the reclassification. If a component is not required to be reclassified to net income in its entirety, companies would instead cross reference to the related footnote for additional information. We adopted this guidance as of January 1, 2013 and present it in a single note.