11. Commitments & Contingent Liabilities

12 Months Ended

Dec. 31, 2011

Commitments & Contingent Liabilities [Abstract]

Commitments and Contingencies Disclosure [Text Block]

11. COMMITMENTS AND CONTINGENT LIABILITIES

Rents and Leases

Net rental expense under operating leases was $42.4 million, $38.3 million and $37.0 million in 2011, 2010 and 2009, respectively.  Leases are principally for facilities and automobiles.

Annual future minimum lease payments at December 31, 2011 under operating leases are as follows: 2012 - $34.9 million; 2013 - $27.2 million; 2014 - $21.4 million; 2015 - $14.5 million; and 2016 and beyond - $50.3 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 $12.1 million, $12.2 million and $11.5 million in 2011, 2010 and 2009, 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, 2011 and 2010 was $27.1 million and $28.8 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, 2011, we had purchase obligations of $73.0 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.

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 $12.6 million of standby letters of credit with banks as of December 31, 2011.

Contingent Consideration

In connection with our acquisition of QuantaLife in October 2011 (see Note 2), we recorded contingent consideration relating to amounts potentially payable to QuantaLife shareholders. The contingent consideration was recognized at its estimated fair value of $24.1 million, both on the date of the acquisition and as of December 31, 2011, and was determined based on a probability-weighted income approach. The contingent consideration could reach $48 million upon the achievement of certain sales and development milestones.