BIO-RAD LABORATORIES, INC.BIO
BIO-RAD LABORATORIES, INC. Commitments Disclosure
14. COMMITMENTS AND CONTINGENT LIABILITIES
Deferred Profit Sharing Retirement Plan
We have a profit sharing plan covering substantially all U.S. employees. Contributions are made at the discretion of management. As of December 31, 2025, the Company had no liability related to the U.S. profit sharing plan, compared to $1.9 million as of December 31, 2024. The contribution expense was $19.1 million, $20.4 million and $20.2 million for the years ended December 31, 2025, 2024 and 2023, respectively.
Purchase Obligations
As of December 31, 2025, we had purchase obligations that have not been recognized on our balance sheet of $105.8 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. Recognition of purchase obligations occurs when products or services are delivered to Bio-Rad, generally within Accounts payable or Other current liabilities.
The annual future fixed and determinable portion of our purchase obligations that have not been recognized on our balance sheet as of December 31, 2025 were as follows (in millions):
| 2026 | $ | 90.2 | |||
| 2027 | 15.2 | ||||
| 2028 | 0.4 | ||||
| 2029 | — | ||||
| 2030 | — | ||||
2031 and thereafter | — | ||||
Long-Term Liabilities
As of December 31, 2025, we had obligations that have been recognized on our balance sheet of $123.7 million, which primarily represent long-term deferred revenue and other post-employment benefits. Excluded are tax liabilities for uncertain tax positions and contingencies. We are not able to reasonably estimate the timing of future cash flows of these tax liabilities, therefore, our income tax obligations are excluded.
The annual future fixed and determinable portion of our obligations that have been recognized on our balance sheet as of December 31, 2025 were as follows (in millions):
| 2026 | $ | 8.5 | |||
| 2027 | 33.1 | ||||
| 2028 | 17.3 | ||||
| 2029 | 6.9 | ||||
| 2030 | 5.9 | ||||
2031 and thereafter | 52.0 | ||||
Letters of Credit/Guarantees
In the ordinary course of business, we are at times required to post letters of credit/guarantees. The letters of credit/guarantees are issued by financial institutions to guarantee our obligations to various parties. We were contingently liable for $16.6 million of standby letters of credit/guarantees with financial institutions as of December 31, 2025.
Other Post-Employment Benefits
In several foreign locations we are statutorily required to provide retirement benefits or a lump sum termination indemnity to our employees upon termination for virtually any reason. These plans are accounted for as defined benefit plans and the associated net benefit obligation as of December 31, 2025 and 2024 of $57.6 million and $59.2 million, respectively, 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 or settle these obligations. However, some of these plans require funding based on local laws in which there is a trust or other device administered by an external plan manager that is used to accumulate assets to assist in settling these obligations. The following disclosures include such plans, which are located in France, Switzerland, Germany, Korea, India, Thailand, Italy, Dubai, Japan and Saudi Arabia.
Obligations and Funded Status
The following table sets forth the change in benefit obligations, fair value of plan assets and amounts recognized in the Consolidated Balance Sheets for the plans (in millions):
| Change in benefit obligation: | 2025 | 2024 | ||||||
| Benefit obligation at beginning of year | $ | 140.3 | $ | 154.4 | ||||
| Service cost | 5.1 | 4.9 | ||||||
| Interest cost | 2.5 | 2.7 | ||||||
| Plan participants' contributions | 3.2 | 3.0 | ||||||
| Actuarial (gain) loss | (7.1) | 2.4 | ||||||
| Gross benefits paid | (1.3) | (1.2) | ||||||
| Plan amendments | 0.3 | (0.8) | ||||||
| Curtailments | (0.6) | — | ||||||
| Settlements | (17.0) | (14.4) | ||||||
| Foreign currency adjustments | 17.9 | (10.7) | ||||||
| Benefit obligation at end of year | 143.3 | 140.3 | ||||||
| Change in plan assets: | ||||||||
| Fair value of plan assets at beginning of year | 81.1 | 92.2 | ||||||
| Actual return on plan assets | 1.3 | 2.6 | ||||||
| Employer contributions | 4.4 | 3.5 | ||||||
| Plan participants' contributions | 3.2 | 3.0 | ||||||
| Gross benefits paid | 0.1 | 0.7 | ||||||
| Settlements | (15.8) | (14.3) | ||||||
| Foreign currency adjustments | 11.4 | (6.6) | ||||||
| Fair value of plan assets at end of year | 85.7 | 81.1 | ||||||
| Underfunded status of plans | (57.6) | (59.2) | ||||||
| Amounts recognized in the consolidated balance sheets: | ||||||||
| Current liabilities (Accrued payroll and employee benefits) | (8.4) | (2.3) | ||||||
| Noncurrent liabilities (Other long-term liabilities) | (49.2) | (56.9) | ||||||
Net liability, end of year | $ | (57.6) | $ | (59.2) | ||||
Components of Net Periodic Benefit Cost
The following sets forth the net periodic benefit cost for the periods indicated (in millions):
Year ended December 31, | |||||||||||
| 2025 | 2024 | 2023 | |||||||||
| Service costs | $ | 5.1 | $ | 4.9 | $ | 5.4 | |||||
| Interest costs | 2.5 | 2.7 | 3.4 | ||||||||
| (1.5) | (1.6) | (2.2) | |||||||||
| Amortization of actuarial losses | — | — | (0.1) | ||||||||
| Amortization of prior service costs | (0.6) | (0.5) | (0.4) | ||||||||
| Curtailments | 0.1 | — | — | ||||||||
| Settlements | 1.3 | 2.2 | 1.3 | ||||||||
| Net periodic benefit costs | $ | 6.9 | $ | 7.7 | $ | 7.4 | |||||
Assumptions
The above actuarial net gains were primarily based on financial, demographic and experience assumptions.
The weighted-average assumptions used in computing the benefit obligations were as follows:
| 2025 | 2024 | |||||||
| Discount rate | 2.0 | % | 1.6 | % | ||||
| Compensation rate increase | 1.9 | % | 1.8 | % | ||||
The weighted-average assumptions used in computing the net periodic benefit costs were as follows:
| 2025 | 2024 | 2023 | |||||||||
| Discount rate | 1.7 | % | 1.9 | % | 2.5 | % | |||||
| Expected long-term rate of return on plan assets | 1.7 | % | 1.8 | % | 2.6 | % | |||||
As of December 31, 2025 and 2024, the accumulated benefit obligation ("ABO") was $127.9 million and $122.1 million, respectively, if these plans were to be terminated immediately. The ABO and fair value of plan assets for these plans with ABO in excess of plan assets were $42.2 million and $41.0 million as of December 31, 2025 and 2024, respectively.
In some foreign locations we have service award plans that are paid based upon the number of years of employment. Under these plans, the liability as of December 31, 2025 and 2024 was $2.4 million and $2.2 million, respectively, and has been included in Accrued payroll and employee benefits and Other long-term liabilities in the consolidated balance sheets.
Concentrations of Labor Subject to Collective Bargaining Agreements
At December 31, 2025, approximately 6 percent of Bio-Rad's approximately 3,068 U.S. employees were covered by a collective bargaining agreement, which has been extended through December 31, 2025. Many of Bio-Rad's non-U.S. full-time employees, especially in France, are covered by collective bargaining agreements.Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 13, 2026 | Showing above |
| 2024 | Feb 14, 2025 | |
| 2023 | Feb 16, 2024 | |
| 2022 | Feb 17, 2023 | |
| 2021 | Feb 11, 2022 | |
| 2020 | Feb 16, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Apr 1, 2019 | |
| 2017 | Apr 16, 2018 | |
| 2016 | Mar 1, 2017 | |
| 2015 | Feb 29, 2016 | |
About Commitments Disclosures
Commitments and contingencies disclosures catalog a company's off-balance-sheet obligations and legal exposures — purchase commitments, guarantee arrangements, pending litigation, and regulatory proceedings. These items represent potential future cash outflows that may not appear as liabilities on the balance sheet until they become probable and estimable.
Key signals: litigation reserves and disclosed loss ranges quantify management's estimate of legal exposure, but unquantified "reasonably possible" losses often represent the larger risk. Watch for changes in language around pending cases — shifts from "remote" to "reasonably possible" or increases in estimated loss ranges signal deteriorating outcomes. Unconditional purchase obligations and take-or-pay contracts create fixed cost structures that reduce operational flexibility. Guarantee arrangements for subsidiaries or joint ventures can create cascading obligations. Compare the total commitment schedule against projected free cash flow to assess whether the company can meet its obligations without additional financing.