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12. Commitments & Contingent Liabilities
12 Months Ended
Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Disclosure [Text Block]
12. COMMITMENTS AND CONTINGENT LIABILITIES

Rents and Leases

Rental expense under operating leases was $45.0 million, $46.9 million and $45.5 million in 2015, 2014 and 2013, respectively.  Leases are principally for facilities and automobiles. We had no sublease income.

Annual future minimum lease payments at December 31, 2015 under operating leases are as follows: 2016 - $41.2 million; 2017 - $33.9 million; 2018 - $25.2 million; 2019 - $18.7 million; and 2020 and beyond - $43.3 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 $14.7 million, $13.7 million and $13.5 million in 2015, 2014 and 2013, 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, 2015 and 2014 was $68.6 million and $46.1 million, respectively, and has been included in Accrued payroll and employee benefits and Other long-term liabilities in the Consolidated Balance Sheets.  Most 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. However, some of these plans require funding based on local laws in which there is a trust or other device used to accumulate assets to assist in settling these obligations.

Purchase Obligations

As of December 31, 2015, we had obligations that have been recognized on our balance sheet of $110.8 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 that have been recognized on our balance sheet as of December 31, 2015 are as follows: 2016 - $23.8 million, 2017 - $10.9 million, 2018 - $3.2 million, 2019 - $2.1 million, 2020 - $1.7 million and after 2020 - $69.1 million.

As of December 31, 2015, we had purchase obligations that have not been recognized on our balance sheet of $35.7 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 that have not been recognized on our balance sheet as of December 31, 2015 are as follows: 2016 - $17.8 million, 2017 - $5.1 million, 2018 - $3.6 million, 2019 - $3.6 million, 2020 - $5.6 million and after 2020 - $0 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. We were contingently liable for $1.3 million of standby letters of credit with banks as of December 31, 2015.

Contingent Consideration

During the second quarter of 2014, we recognized a contingent consideration liability upon our acquisition of GnuBIO. At the acquisition date, the contingent consideration was based on a probability-weighted income approach that could reach $70.0 million upon the achievement of all development/regulatory and sales milestones. The contingent consideration for the development/regulatory milestones was valued at $10.7 million at the acquisition date based on assumptions regarding the probability of achieving the milestones, with such amounts discounted to present value. The contingent consideration related to the development/regulatory milestones was revalued to a fair value of $10.0 million as of December 31, 2015 and 2014. The contingent consideration for the sales milestones at the acquisition date and at December 31, 2015 was determined to be negligible, using the risk-neutral probability of being in the money based on a Black-Scholes framework. The sales that are required under the purchase agreement have a low probability of obtaining the thresholds.

During the third quarter of 2012, we recognized a contingent consideration liability of $44.6 million upon our acquisition of a new cell sorting system from Propel Labs, Inc. The fair value of the contingent consideration was based on a probability-weighted income approach related to the achievement of certain development and sales milestones. The development milestone was achieved and paid in 2013. The first sales milestone was reached, resulting in payments of $2.4 million and $3.0 million in the fourth quarter of 2014 and the first quarter of 2015, respectively. During 2015, the contingent consideration was revalued by a decrease of $5.6 million to its estimated fair value of $9.1 million as of December 31, 2015.

Concentrations of Labor Subject to Collective Bargaining Agreements

At December 31, 2015, approximately eight percent of Bio-Rad's approximately 3,100 U.S. employees were covered by a collective bargaining agreement, which will expire on November 8, 2016.  Many of Bio-Rad's non-U.S. full-time employees, especially in France, are covered by collective bargaining agreements.